(A) Additional 1.25% sales or excise tax; purpose; limited purpose capital improvement fund for hospital.
(1) Beginning on November 1, 2004, and continuing thereafter until a date that is 30 days after any bonds or notes issued to finance the capital improvements specified in this section have been fully paid and retired, or provisions made for retirement, whichever date is first to occur, 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.
(2) The receipts from such additional 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) below of this section.
(B) Purpose of revenues.
(1) 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: construction, renovation, and expansion of the current hospital’s facilities; major renovation of existing hospital space and relocation of support service departments as deemed necessary and required by the authority; and 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.
(2) 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.
(3) 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.
(4) 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 additional 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.
(Prior Code, § 20-28) (Ord. 2004-853, passed 6-23-2004)