Magnolia Recreation Center & Sports Complex Facts

FACTS CONCERNING THE UPCOMING SPECIAL ELECTION ON OCTOBER 10, 2017

Sports Complex Specs

·         6 ball fields (baseball & softball)

·         Ponds (fishing & irrigation)

·         Walking track

Recreation Center Specs

·         Meeting rooms

·         Birthday Party Rooms

·         Therapy pool

·         Exercise (water aerobics)

·         Indoor walking track

·         Splash pad with play equipment

·         Slide that ends in a smaller pool

·         25-meter pool with spectator seating

 

How will it be funded?

·         2007 citizens voted for a tax to build the hospital

·         The bonds on the hospital can now be refinanced

·         Up to $16 million can be added to the bonds during the refinancing process

·         This would extend the hospital bond 6 years

·         Sales tax rate would go DOWN

Example: if you wanted to add an addition to your home, you could refinance your mortgage to pay for the addition.

 

Other facts

·         This is a one-time opportunity

·         The city does not currently have this money on hand to do other projects

·         All 3 propositions will have to pass in order for the money to be available

 

What will the ballot look like?

The ballot will have 3 propositions.  Below is what it will look like on the ballot as well as an explanation of what each means:

1)      An ordinance amending Ordinance No. A-03-15 in order to change the designated uses of the 0.25% sales and use tax within the City of Magnolia, Arkansas levied thereby; to authorize the net collections to be used (A) to finance the operation and maintenance of hospital and other health care facilities and facilities related thereto or in support thereof and/or (B) to pay and secure the repayment of capital improvements bonds approved by the voters and issued from time to time by the City to finance capital improvements; and or prescribing other matters relating thereto.

Explanation: Do you want to authorize the use of the .25% sales tax to go to the hospital and recreation center and sports complex?

 

2)      Issuance of bonds of the City of Magnolia in the maximum aggregate principal amount of $16,395,000 for the purpose of financing all or a portion of the costs of acquiring, constructing, furnishing and equipping park and recreational improvements, including particularly, without limitation, baseball fields, softball fields and an aquatic center, which shall contain an indoor swimming pool and water park, and any necessary land acquisition, parking, landscaping, signage, drainage, lighting, concession, rest rooms, pavilion areas, street and utility improvements related thereto and, in order to pay the bonds, the levy and pledge of a 1% local sales and use tax within the City (the “1% Tax”).  The effective date of the 1% Tax will be July 1, 2018.

In order to provide additional funds to pay or to further secure repayment of the bonds, the City may also pledge to the bonds the net collections of an existing 0.25% sales and use tax levied by Ordinance No. A-03-15, adopted December 30, 2003, if voters approve the use of such collections for that purpose.

Explanation:  Do you want to build a recreation center and sports complex?

 

3)    Issuance of bonds of the City of Magnolia in the maximum aggregate principal amount of $28,010,000 for the purpose of refunding the City’s outstanding Sales and Use Tax Bonds, Series 2007 and, in order to pay the bonds, the levy and pledge of a 1% local sales and use tax within the City (the “1% Tax”).  The effective date of the 1% Tax will be July 1, 2018.

In order to provide additional funds to pay or to further secure repayment of the bonds, the City may also pledge to the bonds the net collections of an existing 0.25% sales and use tax levied by Ordinance No. A-03-15, adopted December 30, 2003, if voters approve the use of such collections for that purpose.

Explanation:  Do you want to refinance the hospital bonds thereby lowering the sales tax rate?

 

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