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

AN ORDINANCE CALLING A SPECIAL ELECTION IN
WHITE COUNTY, ARKANSAS ON THE QUESTION OF
ISSUING BONDS UNDER AMENDMENT NO. 62 TO THE
CONSTITUTION OF THE STATE OF ARKANSAS FOR THE
PURPOSE OF FINANCING ALL OR A PORTION OF THE
COST OF JAIL AND CRIMINAL JUSTICE IMPROVEMENTS AND LEVYING A NEW THREE-QUARTERS OF ONE PERCENT (3/4%) SALES AND USE TAX FOR THE PURPOSE OF RETIRING SUCH BONDS; DEFINING THE TERM
"SINGLE TRANSACTION"; PRESCRIBING OTHER
MATTERS PERTAINING THERETO; AND DECLARING AN EMERGENCY.

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, courtroom, 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 under the authority of Amendment No. 62 to the Constitution of the State of Arkansas ("Amendment 62") 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 (3/4%) sales and use tax to be levied under the authority of the Authorizing Legislation and Ordinance No. 99-18 passed October 5 , 1999 (the "Sales and Use Tax"); 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 to finance Jail and Criminal Justice Improvements, if the voters approve such tax; and

WHEREAS, the purpose of this Ordinance is to submit to the electors of the County the question of issuing the Bonds under Amendment 62 and the Authorizing Legislation at a special election to be called for that purpose and of levying the Sales and Use Tax; and

WHEREAS, the Sales and Use Tax will be levied and collected only on the first $2,500 of gross receipts, gross proceeds or sales price for each ''single transaction'';

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

Article 1. There be, and there is hereby called, a special election to be held on November 9 , 1999, at which election there shall be submitted to the electors of the County, the question of issuing the Bonds under Amendment 62 and the Authorizing Legislation in the aggregate principal amount of not to exceed $19,000,000 and of levying the Sales and Use Tax.

Article 2. The question of issuing the Bonds and levying the Sales and Use Tax shall be placed on the ballot for the election in substantially the following form:

JAIL AND CRIMINAL JUSTICE IMPROVEMENT BONDS AND 3/4% SALES AND USE TAX

FOR an issue of bonds of White County in the maximum principal amount of $19,000,000 to finance all or a portion of the costs of the acquisition, construction, equipping and furnishing of new jail and criminal justice facilities, including related sheriff station, administrative, maintenance, communications, courtroom and parking improvements and any necessary land acquisition for or within such facilities, and, in order to pay and/or secure the bonds, (a) the levy and pledge of a 3/4% local sales and use tax within the County and/or

(b) the pledge of all or a portion of a 1/4% local sales and use tax within the County . . .

AGAINST an issue of bonds of White County in the maximum principal amount of $19,000,000 to finance all or a portion of the costs of the acquisition, construction, equipping and furnishing of new jail and criminal justice facilities, including related sheriff station, administrative, maintenance, communications1 courtroom and parking improvements and any necessary land acquisition for or within such facilities, and, in order to pay and/or secure the bonds, (a) the levy and pledge of a 3/4% local sales and use tax within the County and/or

(b) the pledge of all or a portion of a 1/4% local sales and use tax within the County . . .

If the bonds are approved1 there will be levied within the County a new 3/4% sales and use tax, the net collections of which after the State of Arkansas deducts its administrative charges will be used solely to retire or pay obligations with respect to the bonds in accordance with Amendment No. 62 to the Arkansas Constitution. The 3/4% sales and use tax will expire after the bonds have been paid or provision is made therefor in accordance with Arkansas statutes. The 1/4% sales and use tax will be pledged to the bonds only if such tax is separately approved by the voters. Proceeds of the bonds may fund a debt service reserve, provide for interest until tax collections are available and pay expenses of issuing the bonds.

Article 3. The election shall be held and conducted and the vote canvassed and the results declared under the law and in the manner now provided for county elections unless otherwise provided in the Authorizing Legislation and only qualified voters of the County shall have the right to vote at the election.

Article 4. The results of the election shall be proclaimed by the County Judge, and the Proclamation shall be published one time in a newspaper having a general circulation in the County, which Proclamation shall advise that the results as proclaimed shall be conclusive unless attacked in the courts within thirty days after the date of publication.

Article 5. A copy of this Ordinance shall be given to the White County Board of Election Commissioners so that the necessary election officials and supplies may be provided. A certified copy of this Ordinance shall also be provided to the Commissioner of Revenues of the State of Arkansas as soon as practical.

Article 6. The County Judge and County Clerk, for and on behalf of the County, be and they are hereby authorized and directed to do any and all things necessary to call and hold the special election as herein provided and, if the issuance of the Bonds is approved by the electors, to cause the Sales and Use Tax to be collected in accordance with the Authorizing Legislation, and to perform all acts of whatever nature necessary to carry out the authority conferred by this Ordinance.

Article 7. "Single transaction" is defined according to the nature of the goods purchased as follows:

a. When two or more devices in which, upon which or by which any person or property is, or may be, transported or drawn, including but not limited to, on-road vehicles, whether required to be licensed or not, farm vehicles, off-road vehicles, airplanes, water vessels, motor vehicles, or non-motorized vehicles, and mobile homes, are sold to a person by a seller, each individual unit, whether part of a "fleet" sale or not, shall be treated as a single transaction for the purpose of the Sales and Use Tax.

b. The charges for any utility services, which are subject to the Sales and Use Tax, and which are furnished on a continuous service basis, whether such services' are paid daily, weekly, monthly or annually, shall be computed in daily increments, and each such daily charge increment shall be considered to be a single transaction for the purpose of the Sales and Use Tax.

c. For sales of building materials and supplies to contractors, builders or other persons, a single transaction for the purpose of the Sales and Use Tax, shall be deemed to be any single sale which is reflected on a single invoice, receipt or statement, on which an aggregate sales (or use) tax figure has been reported and remitted to the State of Arkansas.

d. When two or more items of major household appliances, commercial appliances, major equipment and machinery are sold, each individual unit shall be treated as a single transaction for the purpose of the Sales and Use Tax.

e. For groceries, drug items, dry goods and other tangible personal property and/or services not otherwise expressly covered in this Article 7, a single transaction shall be deemed to be any single sale which is reflected on a single invoice, receipt or statement, on which an aggregate sales tax figure has been reported and remitted to the State of Arkansas.

Article 8. The provisions of this Ordinance are separable and if an article, phrase or provision shall be declared invalid, such declaration shall not affect the validity of the remainder of the Ordinance.

Article 9. All ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict.

            PASSED: October5, 1999