State of Arkansas 

Jurisdiction: ~I) f.y d ~ Ph ;I) i p., Type of Levy: __ L=o=ca=I-=S=al=es::...;a=n.:..=:d:....!U"-"s=e_,_T=ax::-_ 

Enactment Date: ocr (ltf I 'I ( Ordinance No. o-cr\- 7 Tax Rate: -.1...-.:...Jt(:_<L__ 

~0 

Purpose and Use of Tax: G' e.tl-«ct{ () ptra. f-i'tJt/1. S 

Applicability of Tax: General sales & use tax- Applies to all goods and services taxable under state law. 

Administrative Costs: 3% of gross collections withheld by the state for administration of the tax. 

Credits or Exemptions: Tax subject to same credits & exemptions available under state sales & use tax law 

Subsequent Amendments and Amendment Purpose: 

1. Date: 0 ; I (J rl t? r; Amending Ordinance No. _o_-_9'"-----=~--___s..3 __ -:----

Purpose of Amendment: Ylc)g ~~ t:.><c '"ff i:J {(A/ (J{t VL 'f-o bt, .,J;, 

2. Date: 03/(J-I}<ttfJV Amending Ordinance No. 0 _qL,- ~ 

Purpose of Amendment: /tfll.l/1./.:y IJ• 'i 1;-3 e,crAJ5 

3. Date: c?l/(3 IJ.cxJV[ Amending Ordinance ro·.....;.. ~_o_tt_-_{ ____ _ 

Purpose of Amendment: ~"'- t:"W~ (3 17-'\cJ 5 

4. Date: ---------Amending Ordinance No.----------

Purpose of Amendment: ------ - --- ----- ----- - ---

Is the tax on aviation fuel distributed for airport related purposes: Yes or No No If No, state reason 

for belief that the tax is grandfathered. 

~<4{ 1-<tX. lcvieJ be:~ ct: 1~/~ VI~ CJ} «J N ~vhS'"k~.t=(ve. 

The state of Arkansas administers local taxes for all cities and counties in this state and commits that the 

Arkansas Department of Finance and Administration will notify the FAA of any subsequent amendments 

to this tax that could affect grandfathered status. 

;J-/ 7/! ) 

Date l ohn H. Theis, Assistant 7 Revenue ommissioner 
ORDINANCE _____ o_-_8_1_-_7 ______ . 

r:E J.T ENACTED, By the Quorum Court of Phillips County, Arkansas an Ordinance entitled: 

nAUTHORIZATION OF A COUNTY-WIDE SALES TAX ELECTION, AND FOR OTHER PURPOSES." 

J,E fT ENACTED, By the Quorum Court of Phillips County an Ordinance as follows: 

:\rticle l, WHEREAS, There is an urgent need on the part of all Municipalities 

Phillips 

in 

County, and by the County of Phillips for increased revenues, and; 

,\rticle 2. WHEREAS, The legislature of the State of Arkansas did, 3t its 1981 

session, authorize by Act 991 of 1981 a one (1%) per cent addition to existing Arkansas Sales Taxes (Gross Receipts Taxes) on a county-wide basis, and; 

:\rlicle 3. WHEREAS, Said Act 991 of 1981 directs the Quorum Court of Phillips 

County, Arkansas to notify the Phillips County Board of Election Commissioners 

that this measure has been referred to the vote of the people, and; 

1\rticle 4. \>ll·IEREAS, Act 991 of 1981 fu-rther directs th<J ballot title to be used 

shall be in the following form: 

"FOR the adoption of a one per cent county-Hide 

sales tax t.J"ithin Phillips County. tr 

11 AGAINST the adoption of a one per cent county-wide 

sales tax within Phillips County. 11 

Article 

Arkansas, 

5. NOIJ, THEREFORE, BE IT ORDAINED, By the Quorum Court of Phillips County, 

that the Board of Election Commissioners be and they are hereby 

petitioned 

1981 

to issue an election proclamation setting the 18th day of August 

as the date for a county-wide sales tax election, pursu.<mt to existing 

election lat.f, and Act 991 of 1981. 

8th day of 

David Ewart, County Clerk 

Phillips County, Arkansas 

July l98l. 

APPHOVED: 

/ / 

A. Y. Gordon, County Judge 

PI1illips County, Arkansas 

r~@~litiL~@ 

C,[i' 01198( 

SALES TAX 

'f ''1' 
EMERGENCY ORDINANCE 

PHILLIPS, 

BE IT ENACTED BY THE QUORUM COURT OF THE COUNTY OF 

STATE OF ARKANSAS, AN ORDINANCE ENTITLED, 

ORDINANCE NO. 0.-85-3 

AN ORDINANCE AUTHORIZING THE ISSUANCE OF 

SALES TAX BONDS FOR THE PURPOSE OF FINANCING 

THE COST TO PHILLIPS COUNTY, ARKANSAS OF 

CONSTRUCTING A NEW COUNTY JAIL; PLEDGING A 

1% SALES TAX TO PAY THE PRINCIPAL OF AND 

INTEREST ON THE BONDS; PRESCRIBING OTHER 

MATTERS RELATING THERETO; AND DECLARING AN 

EMERGENCY. 

Quorum Court 

WHEREAS, by Ordinance No. 85-1, duly adopted by the 

of Phillips County, Arkansas (the "County11

approved 

), and 

Order entered 

on the 9th day of January, 1985, and by County Court 

qualified 

January 3, 1985, there was submitted· to the 

Amendment 

electors 

No. 

of the County the question of issuing, under 

Sales Tax Revenue 

62 to the Constitution of the State of Arkansas, 

$3, 000,000 

Bonds of the County in the principal amount of 

to 

(the "bonds") for the purpose of financing the cost 

the County of constructing a new County Jail (the "Jail 11

paying 

) and 

the bonds 

necessary 

i and 

expenses incidental thereto and to issuance of ·\ .., 

1985, 

WHEREAS, at the special election held February 12, 

a majority of the electors voting on the question approved 

the issuance of the bonds; and 

of 

WHEREAS, the County has made arrangements for the sale 

Administration 

the bonds to the United States of America, Farmers Home 

(the 11 Government 11 ) at a price of par; 

Phillips County, 

NOW, THEREFORE, 

Arkansas: 

BE IT ORDAINED by the Quorum Court of 

acquisition 

Article 1. The construction of the Jail, including 

installation 

of a site therefor and the acquisition and 

of appropriate equipment and other facilities (the 11 Construction11 ) is hereby approved. 

purchase of 

Article 2. The offer of the Government for the 

$3,000,000 

County at 

in principal amount of bonds from the 

per 

a price of par for bonds bearing interest at the rate 

annum, maturing and otherwise subject to the terms and 

\ 

4 

\ 
provisions in this Ordinance set forth in detail is hereby 

accepted and the bonds are hereby sold to the Government. 

Article 3. Under the authority of the Constitution 

and laws of the State of Arkansas, including particularly 

Amendment No. 62 to the Constitution of the State of Arkansas 

and Act No. 871 of 1985, Phillips County, Arkansas Sales Tax 

Revenue Bonds are hereby authorized and ordered issued in the 

total principal amount of $3,000,000, the proceeds of the sale 

of which are necessary to provide sufficient funds for 

accomplishing the construction, paying expenses incidental 

thereto and paying expenses of issuing the bonds. 

The bonds shall be dated as of the date of their 

deli very and shall bear interest at . the rate of 7. 125% per 

annum. The principal of and interest on the bonds shall be 

payable in 29 annual amortized installments on January 1 of each 

year and commencing the second January 1 from the date of the 

bonds and continuing on January 1 of each year thereafter until 

paid in full. The amortized installments of principal and 

interest shall continue until the principal of the bonds, with 

interest, is fully paid, except that final payment of the bonds 

shall be due and payable not later than thLrty (30) years from 

the date of the bonds, subject to prepayment prior to maturity 

as provided in the face of the bonds. Interest only shall be 

due the first January 1 after the date of the bonds. 

The bonds will be issued in the form of a single 

typewritten bond, registered as to both principal and interest, 

payable to the registered owner, or assigns, as set forth 

hereinafter in the permanent bond form, and shall be numbered 

R-1. (Even though a single bond is being issued, reference 

herein wi 11 be to "bonds. 11 ) 

Payment of principal and interest shall be by check or 

draft mailed to the registered owner thereof, without 

presentation or surrender of the bonds (except upon final 

payment) and such payments shall discharge the obligation of the 

County to the extent thereof. The County Clerk shall keep a 

payment record and make proper notations thereon of all payments 

of principal and interest. 

Payment of principal and interest shall be in any coin 

or currency of the United States of America which, as at the 

time of payment shall be legal tender for the payment of debts 

due the United States of America. When the principal of and 

interest on any bonds have been fully paid, the bonds shall be 

cancelled and delivered to the County Clerk. 

2 
IN WITNESS WHEREOF, Phillips County, Arkansas, has 

caused this bond to be executed in its name by its County Judge 

and County Clerk, thereunto duly authorized, and its corporate 

seal to be affixed, all as of the day of 

1985. 

County Clerk 

(SEAL) 

6 

PHILLIPS COUNTY, ARKANSAS 

By ---___,.==-=CT"-c---- County Judge 
REGISTRATION CERTIFICATE 

Signature of 

Date of Registration:Name of Registered Owner: County Clerk 

7 
RECORD OF PAYMENT OF ADVANCES 

Amount of 

Date of Advance* Advance 

Total Principal 

Outstanding 

Signature of 

County Clerk 

*The date of each advance shall be the interest commencement 

date from which the principal amount of such advance bears interest. 

8 
may 

(b) Pending issuance of permanent bonds, the County 

issue temporary bonds, maturing not more than ~years from 

date of issuance and bearing interest at a rate not in excess of 

n/a %. Temporary bonds shall be in substantially the following 

make 

form, and the County Judge and County Clerk are authorized to 

the recitals set forth therein: 

9 
(form of single registered bond) 

(To be typewritten) 

UNITED STATES OF AMERICA 

STATE OF ARKANSAS 

COUNTY OF PHILLIPS 

__ % TEMPORARY SALES TAX REVENUE BOND 

No. R-1 $ _____ _ 

KNOW ALL MEN BY THESE PRESENTS, 

That Phillips County, Arkansas (the "County"), for 

value received, hereby acknowledges itself to owe and promises 

to pay to , , or assigns, the 

total principal outstanding as shown by the Record of Payment of 

Advances attached hereto, but.not to exceed the principal sum of 

THREE MILLION DOLLARS 

with interest from the date of each advance on the unpaid 

balance of the aggregate principal sum at the rate of % per 

annum. The principal and interest shall be payable in such coin 

or currency of the United States of America as at the time of 

United 

payment shall be legal tender for the payment of debts due the 

States of America and shall be payable on or before 

------' 19_ 

Payments 

shall be made only 

to the County. 

of the principal 

upon presentation 

and interest due hereon 

and surrender of this bond 

This bond is issued for the purpose of providing 

temporary financing of the cost to the County of constructing a 

new County Jail, including the acquisition of a site therefor 

and of appropriate equipment and other facilities, costs 

incidental thereto and costs of authorizing and issuing the 

bonds, and is issued pursuant to and in full compliance with the 

Constitution and laws of the State of Arkansas, including 

particularly Amendment No. 62 to the Constitution of the State 

of Arkansas and Act No. 871 of 1985, and pursuant to Ordinance 

No. of the County, duly adopted and approved on the 

day of , 1985 (the "Authorizing Ordinance 11 ). Reference is hereby made to the Authorizing Ordinance for the 

details of the nature and extent of the security and of the 

rights and obligations of the County and the holders and 

registered owners of the bonds. 

10 
Prepayment of principal~ or any portion thereof~ may 

be made from funds from any source at any time at the option of 

the County at a price of the principal amount thereof plus 

accrued interest. 

This bond constitutes an indebtedness of the County 

and is particularly secured by a pledge of collections ("Tax 

Collections 11 ) of the County's sales tax approved by the electors 

of the County at a special election August 8, 1981, pursuant to 

Act No. 991 of 1981. The County covenants that at or before 

maturity of this bond the entire principal and interest hereof 

will be paid and, to the extent necessary, the County will issue 

permanent bonds for that purpose. 

This bond may be assigned, and upon assignment the 

assignor shall promptly notify the County Clerk by registered 

mail, and the assignee shall surrender this bond to the County 

Clerk for transfer on the registration records. Every assignee 

shall take this bond subject to all payments and prepayments of 

principal and interest (as reflected by the payment record 

maintained by the County Clerk), prior to such surrender for 

transfer. 

IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all 

acts, conditions and things required by the Constitution and 

statutes of the State of Arkansas to exist, happen and be 

performed precedent to and in the issuance of this bond, do 

exist, have happened and have been performed in regular and due 

time, form and manner as required by lawi that the bond does not 

excee~ any constitutional or statutory limitation of 

indebtedness, and that provision has been made for the payment 

of the principal of and interest on this bond, as provided in 

the Authorizing Ordinance. 

IN WITNESS WHEREOF, Phillips County, Arkansas, has 

caused this bond to be executed in its name by its County Judge 

and County Clerk, thereunto duly authorized, and its corporate 

seal to be affixed, all as of the day of 

1985. 

PHILLIPS COUNTY, ARKANSAS 

ATTEST: 

By ______ ~--~~~------- County Judge 

County Clerk 

(SEAL) 

ll 
REGISTRATION CERTIFICATE 

Signature of 

Date of Registration:Name of Registered owner: County Clerk 

12 
RECORD OF PAYMENT OF ADVANCES 

Amount of 

Date of Advance* Advance 

Total Principal 

Outstanding 

Signature of 

County Clerk 

*The date of each advance shall be the interest commencement 

date from which the principal amount of such advance bears 

interest. 

13 
Article 6. The County hereby expressly pledges all 

the Tax Collections to the payment of the principal of and 

interest on the bonds, but subject to the provision hereinbelow. 

The County covenants that the Special Tax shall never be 

repealed or reduced while any of the bonds are outstanding. The 

County further covenants to use due diligence in collecting the 

Special Tax. Nothing herein shall prohibit the County from 

increasing the Special Tax from time to time, to the extent 

permitted by law, and no part of the revenues derived from any 

such increase shall become part of the 11 Tax Collections 11 for the 

purpose of this Ordinance. 

Article 7. (a) There shall be deposited on the first 

day of each month following the month in which the bonds are 

issued, into a special fund of the County which is hereby 

created and designated "Sales Tax Bond Fund11 (the "Bond Fund"), 

a portion of Tax Collections equal to not less than 1/12 of the 

principal and interest due on the bonds during the then next 

twelve months, plus the sum of $2,.000 until the Debt Service 

Reserve (identified hereinbelow} attains the level of the Debt 

Service Reserve Requirement (identified hereinbelow) (the 

"Pledged Revenues 11 ). Provided, however, the monthly payment 

prior to the first interest payment date shall be an amount 

equal not less than the amount of the first interest payment 

divided by the number of months between the issuance of the 

bonds and the date of such first interest payment, the purpose 

of providing funds for and securing the payment of principal of 

and interest on the bonds as they become due at maturity or at 

redemption prior to maturity. 

(b) There shall be established and maintained in a 

Debt Service Reserve, as a part of the Bond Fund, in an amount 

not less than $240,.000 (the "Debt Service Reserve Requirement 11 ), to be established by the monthly payments of $2,000 each as set 

forth in (a} above. Disbursements shall be made from the Debt 

Service Reserve solely for the purpose of curing or preventing a 

default in the payment of principal or interest on the bonds, 

and in the event that any disbursement causes the level of the 

Debt Service Reserve to fall below the Debt Service Reserve 

Requirement such deficiency shall be corrected by the deposit or 

deposits into the Debt Service Reserve from the first available 

Tax Collections. 

(c) When the moneys in the Bond Fund shall be and 

remain sufficient to pay the principal of and interest on all 

the bonds then outstanding, there shall be no obligation to make 

any further payments into the Bond Fund. 

(d) All moneys in the Bond Fund shall be used solely 

for the purpose of paying the principal of and interest on the 

14 
bonds, as the same become due, except that if at any time there shall be accumulated in the Bond Fund a surplus in excess of the amount necessary to insure the prompt payment of the principal of and interest on the bonds, as the same become due, and in excess of the Debt Service Reserve, such surplus shall be used on the next interest payment date for the purpose of redeeming bonds. 

(e) It shall be the duty of the County Treasurer to withdraw from the Bond Fund and to pay to the registered owner, on or before the date on which each installment hereunder is 

withdrawal 

due, an amount equal to the amount of such installment. No of funds from the Bond Fund shall be made for any other purpose except as otherwise authorized in this Ordinance. 

(f) The bonds shall be spe.cifically secured by a pledge of all revenues required by this Ordinance to be placed into the Bond Fund. The pledge in favor of the bonds is hereby irrevocably made according to the terms of this Ordinance, and the County, and the officers and employees of the County shall execute, perform and carry out the terms thereof in strict conformity with the provisions of this Ordinance. 

Article 8. The County Treasurer shall be custodian of the Tax Collections as received by the County and shall give bond for the faithful discharge of his duties as such custodian. The amount of the bond shall at all times be at least equal to the total funds in his custody at any one time. All Pledged Revenues received by the Treasurer shall be deposited by him in such depository or depositories for the County as may be lawfully designated from time to time, provided that each depository must hold membership in the Federal Deposit Insurance Corporation. All deposits shall be in the name of the County and shall be so designated as to indicate the particular fund to which such Pledged Revenues belong. Any deposit in excess of the amount insured by the Federal Deposit Insurance Corporation shall be secured by bonds or other direct or fully guaranteed obligations of the United States of America unless invested as herein authorized. 

Revenues, 

Fund may 

purpose. 

Article 9. Any Tax Collections, including Pledged remaining after the required deposits into the Bond be used, as determined by the County, for any lawful 

Article 10. The County covenants that it will not issue any bonds, or incur any obligation, secured by a lien on or pledge of the Pledged Revenues. 

15 
Article 11. In order to pay the principal of and 

interest on the bonds as they mature and as they are redeemed 

prior to maturity, there are hereby appropriated the Tax 

Collections, and if the Tax Collections be not sufficient to pay 

the principal of and interest on the bonds as they mature, the 

County hereby covenants to make its best efforts to present to 

the voters of the County the question of the levy of additional taxes in order to pay such deficiency. 

Article 12. The County will keep or cause to be kept 

proper books of accounts and records (separate from all other 

accounts and records) in which complete and correct entries 

shall be made of all transactions relating to the Special Tax 

and such books shall be available for inspection by the owner of 

any of the bonds at reasonable times and under reasonable 

circumstances. The County agrees to have these records audited 

by an independent certified public accountant at least once each 

year, and the audit shall be available for inspection and 

copying by any registered owner of the bonds. In the event the 

County fails or refuses to make the audit, the Government may 

have the audit made, at the cost of the County. 

Article 13. (a) If there be any default in the 

payment of the principal of and interest on any of the bonds, or 

if the County defaults in the performance of any covenant 

contained in this Ordinance, any registered owner of the bonds 

may, by proper suit compel the performance of the duties of the 

officials of the County under the Constitution and laws of the 

State of Arkansas and under this Ordinance, and to take any 

action or obtain any proper relief in law or equity available 

under the Constitution and laws of the State of Arkansas. 

Article 14. When the bonds have been executed by the 

County Judge and County Clerk and the seal of the County 

impressed, as herein provided, they shall be delivered to the 

Government upon payment of the purchase price. The proceeds 

from the sale of the bonds shall be disbursed as follows: 

In the case of the temporary bonds, and in the case of 

the permanent bonds after payment of discharge of any 

outstanding temporary bonds, the proceeds shall be deposited in 

a special account of the County designated 11 Jail Construction 

Fund11 (the 11Construction Fund") in a bank that is a member of 

the Federal Deposit Insurance Corporation. 

Moneys in the Construction Fund in excess of the 

amount insured by the Federal Deposit Insurance Corporation 

shall be continuously secured by bonds or other direct or fully 

guaranteed obligations of the United States of America, except 

16 
that any moneys invested as hereafter authorized need not be so 

secured. 

The moneys in the Construction Fund shall be disbursed 

solely in payment of the cost of the Construction, paying 

necessary expenses incidental thereto and paying expenses of 

issuing the bonds. Disbursements shall be made in accordance 

with the statutes governing disbursement of County funds, but 

each disbursement shall contain at least the following 

information: The person, firm or corporation to whom payment is 

being made; the amount of the payment; and the purpose by 

general classification of the payment. In the case of all items 

of expense over which the architect for the Construction shall 

exercise supervision (which shall include all expenses except 

architecture fees, legal fees and expenses pertaining to the 

issuance of the bonds) each disbursement shall be accompanied by 

a certificate signed by the architect. 

When the Construction shall have been completed, this 

fact shall be evidenced by the filing with the depository of the 

Construction Fund of a certificate signed by the County Judge 

and the archi teet,· which certificate shall state the date of 

such completion and shall state that all obligations which are 

payable from the Construction Fund have been discharged. Upon 

receipt of the above certificate the depository with which the 

Construction Fund is deposited shall pay or transfer any 

remaining balance pursuant to the written direction of the 

County and with any such remaining balance to be transferred 

into the Bond Fund, and applied immediately to the prepayment of 

bonds ,• in multiples of $1,000 in principal amount. Any 

remaining balance of less than $1,000 shall be deposited in the 

Debt Service Reserve. The County shall require the depository 

to execute an appropriate Deposit Agreement embodying the 

substance of the provisions of this Article 14. 

Article 15. (a) Moneys held for the credit of the 

Construction Fund shall, as nearly as may be practicable, be 

continuously invested and reinvested in direct obligations of, 

or obligations the principal of and interest on which are fully 

which 

guaranteed by, the United States Government, which mature or 

shall be subject to redemption by the holder or registered 

owner, at the option of such holder or registered owner, not 

later than the date or dates when the moneys will be needed for 

proper disbursements. 

(b) Moneys held for the credit of the Bond Fund, 

including the Debt Service Reserve, shall be continuously 

invested and reinvested in direct obligations of, or obligations 

the principal of and interest on which are fully guaranteed by, 

the United States Government, which shall mature, or which shall 

17 
be subject to redemption by the holder or registered owner 

thereofi at the option of such holder or registered owner, not 

later than ten (10) years after the date of investment. 

(c) Obligations so purchased as an investment of 

moneys in any such fund shall be deemed at all times to be a 

part of such fundi and the interest accruing thereon and any 

profit realized from such investment shall be credited to such 

fundi and any loss resulting from such investment shall be 

charged to such fund. 

(d) Moneys 

obligationsi as above 

depository bank. 

so invested in United states Government 

definedi need not be secured by the 

Article 16. In the event the office of county Judgei 

County Clerk or County Treasurer shall be abolished, or any two 

or more of such offices shall be merged or consolidated, or in 

the event the duties of a particular office shall be transferred 

to another office or officer, or in the event of a vacancy in 

any such office by reason of deathi resignation, removal from 

office or otherwise, or in the event any such officer shall 

become incapable of performing the duties of his office by 

reason of sickness, absence form the County or otherwise, all 

powers conferred and all obligations and duties imposed upon 

such office or officer shall be performed by the office or 

officer succeeding to the principal functions thereofi or by the 

office or officer upon whom such powers, obligations and duties 

shall be imposed by law. 

Article 17. The provisions of this Ordinance shall 

constitute a binding contract between the County and the holders 

or registered owners of the outstanding bonds issued hereunderi 

and the County will at all times strictly adhere to the terms 

and provisions hereof and fully discharge all of its obligations 

hereunder. Subject to the terms and provisions contained in 

this Article and not otherwise, the registered owners of not 

less than seventy-five percent (75%) in aggregate principal 

amount of the bonds then outstanding shall have the right, from 

time to timei anything contained in this Ordinance to the 

contrary notwithstandingi to consent to and approve the adoption 

by the County of such ordinance supplemental hereto as shall be 

necessary or desirable for the purpose of modifying, altering, 

amending, adding to or rescindingi in any particulari any of the 

terms or provisions contained in this Ordinance or in any 

supplemental ordinance; provided, howeveri that nothing herein 

contained shall permit or be construed as permitting (a) an 

extension of the maturity of the principal of or interest on any 

bond issued hereunder, or (b) a reduction in the principal 

amount of any bond or the rate of interest thereoni or (c) the 

18 
creation of a lien upon or a pledge of revenues other than as expressly authorized by the appropriate provisions of this 

Ordinance as now adopted, or (d) the creation of a privilege or 

priority of any bond or bonds over any other bond or bonds, or 

(e) a reduction in the aggregate principal amount of the bonds required for consent to such supplemental ordinance. 

Article 18. The County covenants that it shall not 

take any action or suffer or permit any action to be taken or condition to exist which causes or may cause the interest payable 

Without 

on the bonds to be subject to federal income taxation. limiting the generality of the foregoing, the County 

covenants that the proceeds of the sale of the bonds will be not be used directly or indirectly in such manner as to cause the 

bonds to be treated as "arbitrage bonds" within the meaning of 

Section 103(c) of the Internal Revenue Code of 1954, as amended. 

Article 19. The firm of Friday, Eldredge & Clark, Little Rock, Arkansas, is hereby appointed to serve as Bond Counsel on behalf of the County in connection with the issuance of the bonds. 

Article 20. The provisions of this Ordinance are 

separable and in the event that any section or part hereof shall be held to be invalid, such invalidity shall not affect the 

remainder of this Ordinance. 

Article 21. All ordinances and resolutions and parts 

thereof in conflict herewith are hereby repealed to the extent 

of such conflict. 

Article 22. This Ordinance shall not create any right of any character and no right of any character shall arise under or pursuant to it until the bonds authorized by this Ordinance shall be issued and delivered. 

Article 23. It is hereby ascertained and declared that the Jail is immediately needed as present facilities are 

inadequate. Therefore, it is declared that an emergency exists, 

and this Ordinance, being necessary for the preservation of lifer health, safety and property shall be in force immediately 

upon and after its passage. 

19 
PASSED: HAY 8TH 

ATTEST~~ 

County<:rerkj ~~~~a-~------­

( SE~.L) 

20 

lG<: 

I 1985. 

County Judge 
• 

CERTIFICATE 

Arkansas, 

The undersigned, County Clerk of 

hereby certifies that the foregoing 

and correct copy of Ordinance No. Q-RS-3 

REr.lll t,\R ~·lt\Y session o£ the Quorum Court of 

Phillips County, 

pages are a true 

passed at a 

the County, held 

8:30 o'clock 

at the regular meeting place of the County at P . m on the tlTH day of ~lAY 1985, and 

is of record in Ordinance Record Book No. 

that the Ordinance 

143 

at Page 

, now in my possession. 

GIVEN under my hand and 

1985. 

(SEAL) 

21 
j 

• 

EMERGENCY ORDINANCE 

PHILLIPS, STATE 

BE IT 

OF 

ENACTED BY THE QUORUM COURT OF THE COUNTY OF 

ARKANSAS, AN ORDINANCE ENTITLED' 

ORDINANCE NO. 0-86-2 

AN 

THE 

ORDINANCE 

QUORUM COURT 

AMENDING ORDINANCE NO. 0-85-3 ENACTED BY 

AND APPROVED MAY 

OF PHILLIPS COUNTY, ARKANSAS, ADOPTED 

RELATING 

8, 1985; PRESCRIBING OTHER MATTERS 

THERETO; AND DECLARING AN EMERGENCY. 

WHEREAS, 

(the "county''), 

the Quorum Court of Phillips County, Arkansas 

Mays, 1985 

by Ordinance No. 0-85-3 adopted and approved 

(the "Ordinance 11 ), authorized 

Tax Revenue Bonds 

the issuance of Sales 

$3,000,000 

of the County in the principal amount O! 

{the t1Bonds11 } for the purpose of financing 

to the County of 

the cost 

constructing 

paying necessary 

a new County Jail ("Jail") and 

expenses incidental the Bonds; and 

thereto and to issuance of 

WHEREAS, 

Loan Agreement (the 

the 

"Agreement") 

County has approved and entered into a 

America, Farmers Home Administration 

with the United States of 

the Government has 

(the "Government"), whereby committed to purchase the Bonds; and 

WHEREAS, the Government has proposed 

Agreement be amended 

that the 

5. 00% (from 7 

to lower the interest rate on the Bonds to 

interest payment 

.125%), and to lower the annual principal and 

to $198, 150 (from $247, 380); and 

WHEREAS, Article 7 (b) of 

the debt service reserve as set out in 

sum of $2,000 per 

the 

month 

Ordinance should be amended to reduce the 

service reserve of 

to $1,650 per month to a total debt 

$198,000 rather than $240,000; and 

the County 

WHEREAS, 

due to 

such amendments are in the best interests of 

costs and debt service 

the direct savings to the County in interest 

reserve requirements; and 

WHEREAS, the purpose of this Amending Ordinance 

make the necessary amendments 

is to 

the changes 

in the Ordinance, and to approve 

in the Agreement; 

the County: 

NOW, THEREFORE, BE IT ORDAINED by the Quorum Court of 

Article 1. 

amended by striking 

That the Ordinance be, and it is hereby, 

all references to 7.125% as the interest 
Article 4. The bonds shall be executed on behalf of 

the County by the County Judge and County Clerk and shall have 

impressed thereon the seal of the County. The bonds are 

particularly secured by a pledge, hereby granted, of collections 

("Tax Collections 11 ) of the County's sales tax approved by the 

electors of the County (pursuant to Act No. 991 of 1981) at the 

special election of August 8, 1981 {the 11 Special Tax"). 

Article 5. (a} The bonds may be issued as temporary 

bonds and as long-term bonds ("permanent bonds''). The permanent 

bonds shall be in substantially the following form and the 

County Judge and County Clerk are hereby authorized and directed 

to make all the recitals contained therein: 

3 
' 

No. R-1 

(form of single registered bond) 

(To be typewritten) 

UNITED STATES OF AMERICA 

STATE OF ARKANSAS 

COUNTY OF PHILLIPS 

__ % SALES TAX REVENUE BOND 

KNOW ALL MEN BY THESE PRESENTS, 

$3,000,000 

That Phillips County~ Arkansas (the 11County"), for 

value received, hereby acknowledges itself to owe and promises 

Administration, 

to pay to the United States of America, Farmers Home 

or assigns, the total principal outstanding as 

shown by the Record of Payment of Advances attached hereto, but 

not to exceed the principal sum of 

THREE MILLION DOLLARS 

with interest from the date of each advance on the unpaid 

balance of the aggregate principal sum at the rate of 7.125% per 

annum. The principal and interest shall be payable in such coin 

or currency of the United States of America as at the time of 

payment shall be legal tender for the payment of debts due the 

United States of America and shall be payable in the following 

installments on or before the following dates: Interest only on 

the first January 1 following the date of this bond (which is 

the date of issuance of this bond) and annually thereafter in 29 

amortized installments of principal and interest in the amount 

of $ each, on January 1 of each year until the 

principal and interest are fully paid, except that final payment 

of the entire indebtedness, if not sooner paid, shall be due and 

payable thirty (30) years from the date of this bond. 

Payments of the principal and interest installments 

due hereon shall be made, except for final payment, without 

presentation and surrender of this bond, directly to the 

registered owner at his address shown on the bond registration 

book of the County maintained by the County Clerk as Bond 

Registrar, and such payments shall fully discharge the 

obligation of the County to the extent of the payments so made. 

This bond is issued for the purpose of financing the 

cost to the County of constructing a new County Jai 1, including 

the acquisition of a site therefor and of appropriate equipment 

and other facilities, costs incidental thereto and costs of 

authorizing and issuing the bonds, and is issued pursuant to and 

4 
in full compliance with the Constitution and laws of the State 

of Arkansas, including particularly Amendment No. 62 to the 

Constitution of the State of Arkansas and Act No. 871 of 1985, 

and pursuant to Ordinance No. of the County, duly adopted 

and approved on the day of 1985 (the 

"Authorizing Ordinance"). Reference is hereby made to the 

Authorizing Ordinance for the details of the nature and extent 

of the security and of the rights and obligations of the County 

and the holders and registered owners of the bonds. 

Prepayments of principal installments, or any portion 

thereof, . may be made from funds from any source at any time at 

the option of the County in inverse chronological order of 

maturity at a price of the principal amount thereof plus accrued 

interest. Such prepayments shall not affect the obligation of 

the County to pay the remaining installments as scheduled 

herein. 

This bond constitutes an indebtedness of the County 

and is particularly secured by a pledge of collections ( 11 Tax 

Collections") of the County's sales tax approved by the electors 

of the County at a special election August 8, 1981, pursuant to 

Act No. 991 of 1981. The County has covenanted in the 

Authorizing Ordinance to deposit a sufficient amount of Tax 

Collections in a special fund established pursuant to the 

Authorizing Ordinance, and identified as the "Bond Fund, 11 to 

provide for payment of principal and interest on the bonds as 

due and to maintain therein a required reserve. 

This bond may be assigned, and upon assignment the 

assignor shall promptly notify the County Clerk by registered 

mail, and the assignee shall surrender this bond to the County 

Clerk for transfer on the registration records. Every assignee 

shall take this bond subject to all payments and prepayments of 

principal and interest (as reflected by the Payment Record 

maintained by the County Clerk), prior to such surrender for 

transfer. 

IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required by the Constitution and 

statutes of the State of Arkansas to exist, happen and be 

performed precedent to and in the issuance of this bond, do 

exist, have happened and have been performed in regular and due 

time, form and manner as required by lawi that the bond does not 

exceed any constitutional or statutory limitation of 

indebtedness, and that provision has been made for the payment 

of the principal of and interest on this bond, as provided in 

the Authorizing Ordinance. 

5 
rate for the Bonds and inserting 5.0% as the interest rate for 

the Bonds. 

Article 2. That the Ordinance be, and it is hereby, 

amended by striking the reference to $247,380 in the Ordinance 

and inserting $198,150 as the annual payment for the Bonds. 

Article 3. That the Ordinance be, and it is hereby 

amended by striking the references to $2,000 in Article 7(b) of 

the Ordinance and inserting $1,650 as the monthly debt service 

payment and striking the reference to $240,000 and inserting 

$198,000 as the total debt service reserve. 

Article 4. That the County Judge is hereby authorized 

and directed to enter into an agreement with the Government in 

order to amend the terms of the Agreement consistent with the 

amendments in the Ordinance authorized hereby. 

Article 5. 

shall continue in full 

That the Ordinance, 

force and effect. 

as amended hereby, 

Article 6. That is is hereby ascertained and declared 

that the amendments herein made are immediately necessary as the 

present facilities of the Jail are inadequate. It is, 

therefore, declared that an emergency exists and this Ordinance 

being necessary for the immediate preservation of the public 

peace, health and safety shall take effect and be in force from 

and after its passage. 

Article 7. 

instructed to publish 

adoption and approval. 

That the County Clerk of the 

this Ordinance within seven (7) 

_ _,.H""ar.ccuh_l"'2"------' 1986 . 

APPROVED' 

County is 

days after 
CERTIFICATE 

The undersigned, County Clerk of Phillips County, 

Arkansas (the 11County1

'), hereby certifies that the foregoing 

pages, numbered 1 and 2, are a true and perfect copy of an 

Ordinance amending Ordinance No. 0-85-83 adopted at a ~reb 

session of the Quorum Court of the County, held at the regular 

meeting place in the County, at o'clock p....__.m., on 

the 12th day of March 1986, that the Ordinance is of 

record in the Ordinance Record Books of the County, now in my 

possession, that the meeting was open to the public at all times 

and advance public notice of the time and place of the meeting was duly given in accordance with the Arkansas Freedom of 

Information Act. 

March GIVEN under my hand and seal this _____ , 198. 6 13th day of 

(SEAL) 
ORDINANCE NO. ;'ctYfoi 

TAX 

AN ORDINANCE 

REFUNDING 

AUTHORJZING THE ISSUANCE OF SALES AND USE 

BONDS, SERJES 2004; AUTHORIZING 

EXECUTION AND DELIVERY 

THE 

PROVIDING 

OF A BOND PURCHASE AGREEMENT 

EXECUTION AND 

FOR 

DELIVERY 

THE SALE OF THE BONDS; AUTHORIZING THE 

BONDS; APPROVING 

OF A TRUST INDENTURE SECURJNG THE 

DlSTRlBUTION OF A 

AND RATIFYING THE PREPARATION AND 

IN CONNECTION WITH 

PRELIMINARY OFFICIAL STATEMENT FOR USE 

PRESCRJBING MATTERS 

THE OFFER AND SALE OF THE BONDS; 

EMERGENCY 

RELATED THERETO; AND DECLARING AN 

WHEREAS, in 1985 the County issued $3,000,000 of its Sales Tax Bonds, Series 1985 

(the "Series 1985 Bonds"), for the purpose of financing the acquisition, construction and 

equipping of new jail facilities; and 

WHEREAS, 

Series 1989 (the "Series 

in 1989 

1989 

the 

Bonds"), 

County issued $1.865.000 of its Sales Tax Refunding Bonds, 

for the purpose of refunding the Series 1985 Bonds; and 

WHEREAS, 

Series 1997 (the "Series 

in 1997 

1997 

the 

Bonds"), 

County issued $I,565,000 of its Sales Tax Refunding Bonds, 

which Series 1997 Bonds are currently 

for the purpose of refunding the Series 1989 Bonds, 

outstanding in the principal amount of $1 ,220,000; and 

WHEREAS, the Series 1997 Bonds are secured by a pledge of the County's share of the 

receipts of the County's one percent (I%) local sales and use tax (the "Sales and Use Tax") 

levied and collected pursuant to Ordinances 81~7 and 81~8 adopted by the County on July 8, 

1981, and approved by the qualified electors of the County at a special election held August 18, 

J98l;and 

WHEREAS, at a special election held February 12, 1985, a majority of the qualified 

electors of the County voting on the question approved the issuance of the Series 1985 Bonds 

and the pledge of the County's share of the receipts of the Sales and Use Tax to the payment 

thereof; and 

WHEREAS, in order to achieve debt service savings, the County has now determined to 

Bonds"), 

issue and 

for 

sell 

the 

its $1,195,000 

purpose of 

Sales and Use Tax Refunding Bonds, Series 2004 (the "Series 2004 

refunding 

Amendment 62 to the Constitution 

the outstanding Series 1997 Bonds, as pennitted under 

by the Local Government Bond Act 

of the State of Arkansas ("Amendment 62"), as implemented 

of 1985, codified as Arkansas Code Annotated 

& Supp. 2003) Sections 14~164-301 

(1998 Rep!. 

et seq. (as from time to time amended, the "Act''); and 

WHEREAS, the County has made arrangements for the sale of the Series 2004 Bonds to 

Stephens Inc. (the "Undervvriter"), and in connection 

Official Statement dated January 

therewith has prepared a Preliminary 

2, 2004 (the "Preliminary Official Statement") 

Official Statement as amended 

(the Preliminary 

to conform to the terms of the Bond Purchase Agreement, as 

defined below, is hereafter referred to as the "Official Statement"); and 

WHEREAS, there has been submitted 

Agreement dated January 13, 

to the County by the Undenvriter a Bond Purchase 

2004 (the "Bond Purchase Agreement"), providing for the 

purchase 

J0-55927.2 

of the Series 2004 Bonds by the Underwriter, and 
WHEREAS. copies of the Preliminary Official Statement, Bond Purchase Agreement and 

meeting. 

Indenture (hereinafter defined) have been presented to and are before the Quorum Court at this 

Arkansas, 

NOW THEREFORE, BE IT ORDAINED by the Quorum Court of Phillips County, 

that: 

Section I. In addition to the terms defined in the preamble to this Ordinance, the 

context 

following words and terms used in this Ordinance shall have the following meanings unless the 

clearly states another or different meaning or intent: 

Agreement 

"Continuing Disclosure Agreement" means the Limited Continuing Disclosure 

dated as of February 1, 2004, by and between the County and the Trustee, which 

shall 

happening 

provide for continuing disclosure of certain financial data in certain circumstances and the 

of certain events, if material. 

2003, 

"Escrow Agreement" means the Escrow Deposit Agreement dated as of February I, 

defeasance 

by and between the County and the Escrow Trustee, which shall provide for the 

and redemption of the Series 1997 Bonds. 

"Escrow Trustee" means BancorpSouth Bank. Stuttgart, Arkansas, together with any 

successor and any other corporation which may at any time be substituted in its place. 

"Indenture" means the Trust Indenture dated as of February 1, 2004, between the County 

and the Trustee, which shall provide for the issuance of and security for the Series 2004 Bonds. 

"Tax Receipts" means the County's share of the receipts derived 

Tax. 

from the Sales and Use 

"Tax Regulatory Agreement" means the Tax Regulatory Agreement dated as of February 

excludability 

1, 2004, between the County and the Trustee, which shall provide for the maintenance of the 

purposes. 

of interest on the Series 2004 Bonds from gross income for federal income tax 

"Trustee" means BancorpSouth Bank, Stuttgart, Arkansas, together with any successor 

and any other corporation which may at any time be substituted in its place pursuant to the 

Indenture. 

Section 2. All actions heretofore taken by the officials of the County in connection with 

Official 

the offer and sale of the Bonds, including the preparation and distribution of the Preliminary 

Statement, are hereby in all respects ratified and approved. 

Underwriter, 

Section 3. There is hereby authorized and directed the acceptance of the offer by the 

price of 

pursuant to the Bond Purchase Agreement, to purchase the Series 2004 Bonds at a 

$1,171,100.00 (98.00% of the principal amount thereof), plus accrued interest thereon 

from February I, 2004 to the date of delivery thereof. The Bond Purchase Agreement is hereby 

approved in substantially 

counsel of 

the form submitted to this meeting, and the County Judge, with the 

Rock LLP, 

the County Attorney, is hereby authorized to confer with the Underwriter and Kutak 

Agreement 

Little Rock, Arkansas ("Bond Counsel"), in order to complete the Bond Purchase 

in substantially the form submitted to this meeting, with such changes as shall be 

10-55!,)27 2 2 
approved 

evidence 

by such persons e.'Xecuting the document, their execution to constitute conclusive 

of such approval. 

(Advice is given that a copy of the Bond Purchase Agreement in substantially 

authorized 

the form 

interested person.) 

to be executed is on file with the County Clerk and is available for inspection by any 

Section 4. To provide a portion of the funds necessary to refund the Series 1997 Bonds, 

Act, 

there is hereby authorized the issuance of bonds of the County under Amendment 62 and the 

2004" 

to be designated "Phillips County, Arkansas Sales and Use Tax Refunding Bonds, Series 

in aggregate principal amount of $1,195,000. The Series 2004 Bonds shall be issued in 

2004, 

the fonn 

shall 

and 

be 

denominations set forth in the Indenture, shall be initially dated as of February 1, 

year commencing 

numbered 

March 

as provided in the Indenture; shall mature annually on March 1 of each 

incorporated 

I, 2005, as set forth in Schedule A hereto (which schedule is 

September 1 of 

herein by this reference); shall bear interest payable semiannually on March I and 

and 

each year commencing September 1, 2004, at the rates set forth in the Indenture 

conditions 

in Schedule A hereto; shall be subject to redemption prior to maturity upon the terms and 

set forth in the Indenture; and shall be sold to the Underwriter for the price specified 

in Section 3 of this Ordinance. 

Section 5. The Series 2004 Bonds shall be special obligations of the County and, except 

shall 

to the 

be 

extent payable from Series 2004 Bond proceeds or moneys from the investment thereof, 

payable solely from Tax Receipts received by or on behalf of the County, and delivered 

purpose. 

to the Trustee 

Except 

pursuant to the Indenture, and said Tax Receipts are hereby pledged for such 

shall not 

as specifically provided herein and in the Indenture, the Series 2004 Bonds 

statutory 

constitute a debt or liability of the County within the meaning of any constitutional or 

the Series 

limitation. 

2004 Bonds. 

The County Judge is hereby authorized and directed to execute and deliver 

deliver 

and the County Clerk is hereby authorized and directed to execute and 

and County 

the Series 

Clerk 

2004 Bonds and to affix the seal of the County thereto, and the County Judge 

authenticated 

are hereby authorized and directed to cause the Series 2004 Bonds to be 

by the Trustee. 

to be 

Section 6. To prescribe the terms and conditions upon which the Series 2004 Bonds are 

secured, executed. authenticated, 

County Clerk 

issued, accepted and held, the County Judge and the 

Indenture, 

are hereby authorized and directed to execute, acknowledge and deliver the 

Clerk are hereby 

by and between the County and the Trustee, and the County Judge and the County 

acknowledged 

authorized and directed to cause the Indenture to be accepted, executed and 

by the Trustee. The Indenture is hereby approved in substantially 

submitted 

the form 

hereby authorized 

to this meeting, and the County Judge, with the counsel of the County Attorney, is 

complete 

to confer with the Trustee, the Underwriter and Bond Counsel in order to 

the Indenture in substantially 

shall be approved 

the form submitted to this meeting, with such changes as 

by such persons executing the document, their execution to constitute 

conclusive evidence of such approval. 

(Advice is given that a copy of the Indenture in substantially 

executed 

the fonn authorized to be 

person.) 

is on file with the County Clerk and is available for inspection by any interested 

use of 

Section 7. There is hereby approved, ratified and confirmed the preparation of and the 

the Preliminary Official Statement, and the County Judge is hereby authorized and 

3 
directed to execute and deliver the Official Statement and any amendment 

behalf of the County. The Preliminary 

thereto for and on 

Official Statement 

meaning of Securities 

is hereby "deemed final" within the 

and Exchange Act Rule l5c2-12. 

(Advice is given that a copy of the Preliminary Official Statement 

County Clerk and 

is on file with the 

is available for inspection by any interested person.) 

Section 8. The County Judge and County Clerk are hereby further empowered 

and deliver and 

to execute 

the terms of 

all documents, certificates and other instruments which may be required under 

the Indenture or Bond Purchase Agreement and which are appropriate 

purposes of this Ordinance, 

to effect the 

the Escrow Agreement 

including, but not limited to, the Continuing Disclosure Agreement, 

and the Tax Regulatory Agreement. 

and to 

Section 

be issued 

9. 

by 

The County hereby declares its expectation and intention that bonds issued 

$10,000,000 in principal 

the County during calendar year 2004 will not in the aggregate exceed 

''qualified tax-exempt obligations" 

amount, and the County hereby declares the Series 2004 Bonds to be 

Code of 1986, as amended. 

within the meaning of Section 265(b) of the Internal Revenue 

repealed 

Section 

to 

10. All ordinances or resolutions of the County in conflict herewith are hereby 

the extent of such conflict. 

Section II. The Quorum Court hereby detennines 

substantial debt service 

that the County can achieve 

savings through refunding 

way to accomplish 

the Series 1997 Bonds; that an appropriate 

this refunding 

Receipts as authorized by Amendment 

is by the issuance of the Series 2004 Bonds payable from Tax 

this Ordinance shall be given 

No. 62 to the Arkansas Constitution and the Act; and, that 

as soon as possible. Therefore, 

immediate effect so that the debt service savings may be achieved 

an emergency 

being necessary 

is hereby declared to exist and this Ordinance 

in full force and effect 

for the immediate preservation of the public health, safety and welfare shall be 

from and after its passage and approvaL 

Adopted this j:3!fl_. day of January, 2004. 

ATTEST: 

By~,~ Con ty Clerk 

[SEA LJ 

PHILLIPS COUNTY, ARKANSAS 

By: Q(Sl-~ £:£ 1

27 County Judge '~ 

CERTIFICATE OF RECORD 

STATE OF ARKANSAS 

County of Phillips }ss. 

I, Unda WhHe, Clerk of the County Court and the Probate Division of 

annexed 

the Circuit Court for the County aforesaid. do hereby cerflfy that the 

and foregoing 

complel~;ffiPY 

instrument of writing is a true, correct and 

of thr,griginal which was filed for record in my office 

on lhe~d'!Y of .• ):;;!J•-1 2~and as the same ap.Re,.ars 

Recora:1 in 

IN TESTIMONY 

·:4. • :t of Phillips County, Arkansas. page no. d ~ 

WHEREOF, I have her.,e,Y.fi\Q set my hand and affixed 

the s,:r of said Court !his the d_U14 day of 'S:.J,Ntdl~'l:<) 

2cQ::L. .......--:: 

/"a'ziND , lerk: 

B;/-", 't- /. PI-" D.C. 
Year 

(March I) 

2005 

2006 

2007 

2008 

2009 

20!0 

2011 

2012 

2013 

2014 

l0-55927.2 

Schedule A 

$1,195,000 

Phillips County, Arkansas 

Sales and Use Tax Refunding Bonds 

Series 2004 

Maturity Schedule 

Principal 

Amount 

$105,000 

1!0,000 

110,000 

115,000 

115,000 

120,000 

125,000 

130,000 

130.000 

135,000 

A-1 

Rate of 

Interest 

1.500% 

1.800 

2.200 

2.550 

2.800 

3.100 

3.350 

3.550 

3.750 

3.875