BE IT ENACTED BY THE QUORUM COURT OF THE COUNTY OF WHITE, STATE OF ARKANSAS, AN ORDINANCE TO BE ENTITLED:

AN ORDINANCE LEVYING A NEW THREE-QUARTERS OF ONE PERCENT (1/4%) SALES AND USE TAX FOR THE
PURPOSE OF RETIRING BONDS ISSUED FOR JAIL AND CRIMINAL JUSTICE IMPROVEMENTS; AND PRESCRIBING
OTHER MATTERS PERTAINING THERETO. 

WHEREAS, the Quorum Court of White County, Arkansas (the "County") has determined that the County is greatly in need of new jail and criminal justice facilities, including related sheriff station, courtroom1 maintenance, communications, administrative and parking improvements and any necessary land acquisition for or within such facilities (collectively, the "Jail and Criminal Justice Improvements") ; and

WHEREAS, the cost of the Jail and Criminal Justice Improvements, including incidental expenses and expenditures in connection with accomplishing the Jail and Criminal Justice Improvements, expenses in connection with authorizing and issuing bonds, paying interest until collections are available and funding a debt service reserve, is estimated to not exceed $19,000,000; and

WHEREAS, the County can finance all or a portion of such costs by the issuance of capital improvement bonds in the maximum aggregate principal amount of $19,000,000 (the "Bonds") under the authority of Amendment No. 62 to the Constitution of the State of Arkansas and Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated (the "Authorizing Legislation"); and

WHEREAS, the County can pay the principal of and interest on the Bonds from the proceeds of a new county-wide three-quarters of one percent (1/4%) sales and use tax to be levied under the authority of the Authorizing Legislation solely for that purpose; and

WHEREAS, the County may further secure payment of the Bonds with a new county-wide one-quarter of one percent (1/4%) sales and use tax levied by Ordinance No. 99-16 , adopted October 5 , 1999, for the purpose of (a) operating and maintaining jail and criminal justice facilities and/or (b) securing the repayment of capital improvement bonds approved by the voters and issued from time to time by the County to finance Jail and Criminal Justice Improvements, if the voters approve such tax; and

WHEREAS, the purpose of this Ordinance is to levy a sales and use tax at the rate of three-quarters of one percent (3/4%) on the receipts from the sales at retail within the County of all items which are subject to taxation under the Arkansas Gross Receipts Act of 1941, as amended (A.C.A. §§26-52-l01, et seq.), and the receipts from storing1 using, distributing or consuming within the County tangible personal property under the Arkansas Compensating Tax Act of 1949, as amended (A.C.A. §§26-53-l0l, et seq.) (collectively, the "Sales and Use Tax");

NOW, THEREFORE, BE IT ENACTED by the Quorum Court of White County, Arkansas:

Article 1. Under the authority of the Authorizing Legislation, there is hereby levied the Sales and Use Tax. The Sales and Use Tax shall be levied, and the net collections received after the State of Arkansas deducts its administrative charges shall be used, solely for the purpose of retiring or paying obligations with respect to the Bonds. The Sales and Use Tax shall be levied and collected only on the first $2,500 of gross receipts, gross proceeds or sales price from each single transaction.

Article 2. All ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict.

Article 3. This Ordinance shall not take effect until an election is held on the question of issuing the Bonds and levying the Sales and Use Tax at which a majority of the electors voting on the question have approved the issuance of the Bonds and the levy of the Sales and Use Tax.

        PASSED: October 5, 1999