An issue of bonds of the City of Springdale in the maximum principal amount of $44,765,000 for the purpose of financing all or a portion of the costs of refunding the City's outstanding Sales and Use Tax Refunding Bonds, Series 2013, professional fees related to the foregoing, the establishment of reserves, and bond issuance and any credit enhancement costs, and, in order to pay the bonds, the levy and pledge of a 1% local sales and use tax within the City that will expire after the bonds have been paid or provision is made therefor in accordance with Arkansas statutes.
This ballot item authorizes the City to refund the outstanding balance of 2013 bonds. This is the most important ballot question, because it determines if we can pay back the investors the cost of the 2013 bonds, which refinanced the 2006 bonds. In order to issue new bonds, we have to refund the outstanding balance of the previous bonds. Therefore, if this issue fails, we will not be able to move forward with any other ballot measure, even if voters support them.
Note: The "1% Sales and Use Tax" at the end of each ballot item is not a tax increase. It is an authorization to continue the current 1% sales and use tax that was levied in 2003 and continued in 2006 as approved by Springdale voters.