(A) There is hereby levied an excise tax of 2% upon the gross proceeds or gross receipts derived from all sales taxable under the State Sales Tax Code.
(B) (1) Additional 1.25% sales or excise tax; purpose; limited purpose capital improvement fund for hospital; limited purpose operation and maintenance fund for hospital.
(a) Beginning on November 1, 2004, and continuing thereafter in perpetuity unless repealed by the voters, there is hereby declared and shall be levied and collected, an additional city excise (sales) tax of 1.25%, such sales tax being in addition to the city and state sales taxes heretofore levied or assessed, upon the gross proceeds or receipts derived from all sales to any person taxable under the sales tax laws for the state.
(b) The receipts from such sales tax shall be initially deposited into a limited purpose fund to be known as the “Hospital Capital Improvement Fund,” to be held on behalf of the Alva Hospital Authority (the “Authority”), and to be accumulated, earmarked, used, and expended by the authority only for the purposes set out in subsection (B)(2) below.
(c) The receipts from such “excess” sales tax shall be initially deposited into a limited purpose fund to be known as the “Hospital Operation and Maintenance Fund,” to be held on behalf of the Authority, and to be accumulated, earmarked, used, and expended by the Authority only for the purposes set out in subsection (B)(2) below.
(2) Purpose of revenues.
(a) It is the purpose of the 1.25% municipal sales tax levied hereunder to make capital improvements to the Share Memorial Hospital (the “Hospital”), which is operated by the Alva Hospital Authority (the “Authority”). Such capital improvements shall include, but not be limited to, the following:
1. Construction, renovation, and expansion of the current hospital’s facilities;
2. Major renovation of existing hospital space and relocation of support service departments as deemed necessary and required by the authority; and
3. Demolition and reconstruction of areas of the hospital that are hazardous and dangerous to patients and staff, as deemed reasonable and necessary by the authority.
(b) The Authority may determine to issue its bonds, notes, or other evidences of indebtedness in order to provide lump sum funding of the capital improvements authorized hereunder, and use the proceeds of the sales tax levied hereunder to pay debt service on such indebtedness, subject to city approval as may be required by law.
(c) The proceeds of the tax and investment income therefrom may be used to pay the costs of such capital improvements as they are made, or to pay debt service on any tax anticipation notes, or other notes, bonds, obligations, or evidences of indebtedness issued by the city or the Authority to finance such capital improvements to said hospital.
(d) A special, limited purpose fund, to be known as the “Hospital Capital Improvement Fund,” is hereby established and shall be used solely for the purposes of receiving the revenues derived from collection of the 1.25% sales tax imposed hereunder, receiving income from investment of said fund, paying indebtedness on any tax anticipation notes or bonds, notes, or other indebtedness issued by the city or the authority to finance capital improvements to the hospital, and paying for the hospital capital improvements specified in this section.
(e) A special, limited purpose fund, to be known as the “Hospital Operation and Maintenance Fund,” is hereby established and shall be used solely for the purposes of receiving the excess revenues derived from collection of the 1.25% sales tax imposed hereunder, receiving income from investment of said fund and paying operation and maintenance expenses of the hospital. For this purpose, the term
EXCESS would be defined as any sales tax revenues remaining following the monthly payment of principal and interest on the currently outstanding indebtedness of the Authority and any future obligations issued on a parity basis therewith and the replenishment of the Debt Service Reserve Fund to the Debt Service Reserve Requirement of the currently outstanding indebtedness of the Authority and any future obligations issued on a parity basis therewith.
(Prior Code, § 20-26) (Ord. 767, passed 7-1-1985; Ord. 2013-040, passed 8-5-2013)