Article 16 - Section 11: Levy and appropriation of taxes
“No tax shall
be levied except in pursuance of law, and every law imposing a tax shall state
distinctly the object of the same: and no moneys arising from a tax levied for
any purpose shall be used for any other purpose.”
Amendment 62: Local Capital
Improvement Bonds
Section 5: Disbursement of Surplus
“The special tax for payment of bonded indebtedness authorized in Sections 1 and 2 hereof shall constitute a special fund pledged as security for the payment of such indebtedness. The special tax shall never be extended for any other purpose, nor collected for any greater length of time than necessary to retire such bonded indebtedness, except that tax receipts in excess of the amount required to retire the debt according to its term may, subject to covenants entered into with the holders of the bonds, be pledged as security for the issuance of additional bonds if authorized by the voters.
Ballot
Language -
Bond Usage: “.... will be used solely to retire the bonds and obligations of the City with respect thereto. The new tax will replace the City’s existing 0.5% sales and use tax levied in 1995 to finance civic center improvements.”
Refunding Question: “.... $11,700,000 for the purpose of refunding the City’s outstanding Sales and Use Tax bonds (Civic Center Project) Series 1996,”
Civic Center Improvements Question: “....$28,100,000 to finance all or a portion of the costs of acquiring, constructing, furnishing and equipping extensions, betterments and improvements to the Hot Springs Civic and Convention Center, including particularly, without limitation, an expansion for meetings and conventions, exhibitions, entertainments and sports events, and related uses and parking, drainage, street and utility improvements and land acquisition therefor,”
Arkansas Attorney General Opinions:
State Representative Terry Smith (April 13, 1995):
Opinion on whether Garland County and the board of trustees of the Garland County Library use, for maintenance of a library facility, funds arising from the imposition of sales and use tax imposed for a limited time under authority of ACA 14-164-338 and 327 that remain unspent after the completion of the projects, including construction of the library, specified in the ballot title employed in the election at which the tax was approved by voters.
“In my opinion, the answer to your question is “no.” Winston Bryant - Attorney General
State Representative Allen Maxwell (
Opinion “regarding the legality of renewing the 1% tax prior to expiration of the existing tax deadline.”
“In my opinion,
the City cannot ‘extend’ the existing sales tax as contemplated by your question,
so as to facilitate the issuance of bonds against future revenue, because there
is no specific procedure under state law for renewing or extending a sales tax.” Mike Beebe - Attorney General
Questions to the Board from Bob Driggers, Hot-Springs-Metro.org
1. In view of the above, are you certain that the $2.1 million in surplus funds collected over and above the amount required to retire the bonds can be used for other, non civic center related purposes?
2. In view of the above, if sufficient moneys have been collected to retire the civic center bonds, why is the sales tax still in place and still being collected?
3. In view of the fact that the city used the
4. As a minimum, should not a qualified bond attorney be consulted and provide answers to the above questions?
5. When will the public have a vote on any of these issues?