(A) Additional 1% sales or excise tax.
(1) Beginning on June 1, 1999, and continuing thereafter until lawfully repealed, there is hereby declared and shall be levied and collected an additional city excise (sales) tax of 1%, such sales tax being in addition to the city and state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.
(2) The receipts from such additional sales tax shall be initially deposited into a limited purpose fund to be known as the “Economic Development Fund,” to be held in the name of the Alva Economic Development Authority (the “Authority”), and to be accumulated, earmarked, used, and expended by the authority only for the purposes set out in subsection (B) below of this section.
(B) Purpose of revenues. It is the purpose of the one cent municipal sales tax levied hereunder to promote economic development within the city, and areas immediately adjacent thereto, in order to maintain or improve economic conditions within the city; and to the extent not reasonably needed for economic development purposes, as determined by the Authority with approval of the City Council, to support the general functions of the city government. Specifically, said one cent of additional municipal sales tax shall be utilized and expended for the following purposes, and in the manner hereinafter provided.
(1) A special, limited purpose fund, to be known as the “Economic Development Fund,” is hereby established and shall be used solely for the purposes of receiving the revenues derived from collection of the additional 1% sales tax imposed hereunder, receiving income from investment of said fund, paying the costs of the economic development programs herein described or subsequently developed and implemented by the authority with the approval of the city, paying indebtedness on any bonds, notes, or other indebtedness issued by the city or the authority to finance the programs herein described, and to otherwise be transferred to the city to finance its general operations and functions.
(2) The authority shall develop a plan for one or more projects to promote economic development within the city. Such economic development plan, and any amendments or revisions thereto, shall be presented to and approved by a majority vote of the City Council prior to its implementation. Any such economic development plan shall promote the growth or maintenance of the economy within the city, and may include, but not be limited to, such items as:
(a) Funding of scholarships to Northwestern Oklahoma State University students in the city;
(b) The development, operation, and maintenance of an adequate system of parks and recreational facilities within the city;
(c) Recruitment of new industries to, or the retention of existing industries within or near the city; and
(d) Such other projects as determined by the Authority, with the approval of the city, which will promote the overall economic health and financial well being of the city and its residents.
(3) The authority may determine to issue its bonds, notes, or other evidences of indebtedness in order to provide lump sum funding of one or more programs hereunder, and use the proceeds of the sales tax levied hereunder to pay debt service on such indebtedness, subject to city approval as required by law.
(4) In the event the authority determines that all of the proceeds of the one cent sales tax levied hereunder are not required for the economic development purposes above described, the Authority shall make a recommendation to the City Council that any amounts determined not to be needed for such purposes be transferred from the Economic Development Fund to the General Fund of the city, and upon approval by the City Council, such excess or surplus amounts shall be transferred to the city’s General Fund and used for any lawful purpose.
(Prior Code, § 20-27) (Ord. 827, passed 3-1-1999)