1523RESOLUTION NO. / S~ 3
A RESOLUTION AUTHORIZING THE DISTRIBUTION OF
SALES AND USE TAX PROCEEDS TO CRITTENDEN COUNTY, ARKANSAS
WHEREAS, on September 30, 1987, the voters of Crittenden County voted in
favor of the adoption of a county-wide 1 % sales and use tax, as referred to the people by
County Ordinance No. 1987-10, and
WHEREAS, by the ballot title of said ordinance, 50% of the sales and use tax
proceeds shall be deposited with the county government and 50% is shared by the
municipalities in the county on a pro-rata basis, and
WHEREAS, distribution of these tax proceeds was initially accomplished by the
municipalities remitting to the county, upon receipt from the State Treasurer, so that the
county received 50% of the sales and use tax proceeds, and
WHEREAS, a dispute has now arisen between the county and some of the
municipalities in the county, as to whether the municipalities are required to remit to the
county any of these sales tax proceeds that are received from the State Treasurer by the
municipalities on a per capita basis, which has resulted in litigation being filed, which is
now pending, and
WHEREAS, in view of this litigation the City of West Memphis has not remitted
that portion of this sales and use tax it has received from the State Treasurer that
Crittenden County contends is owing to it under the September 30, 1987, vote of the
people of Crittenden County since October of 1996, and
WHEREAS, this fact will soon threaten the Crittenden County government with
a serious financial crisis, which the City of West Memphis wishes to avoid pending the
resolution of the current dispute either by judicial or state legislature action.
NOW, BE IT RESOLVED BY THE CITY COUNCIL OF WEST MEMPHIS:
1. The City of West Memphis shall immediately pay to Crittenden County those
sales tax proceeds that it has received from the State Treasurer from the 1% sales and use
tax passed by voters of Crittenden County on September 30, 1987, that it has withheld
since November of 1996;
2. The amount of proceeds to be remitted under paragraph 1 of this resolution
shall be calculated in such a manner so as to insure that the City of West Memphis
retains 63% of the sales and use tax proceeds it has received from the State Treasurer
pursuant to this 1 % county-wide tax:
3. The City of West Memphis shall continue to remit to Crittenden County its
37% share of these sales and use tax proceeds upon their receipt from the State
Treasurer, until the dispute presently pending between Crittenden County and certain
Crittenden County municipalities in cause No. CIV-96-183 in the Circuit Court of
Crittenden County, Arkansas, is resolved either by judicial or state legislative action;
4. This Resolution shall have full force and effect immediately after its adoption
and shall be binding upon the city officials whose actions are necessary to carry out its
effect.
ADOPTED THIS T~ day of ~~R y?~1RY , 1997.
CITY OF WEST MEMPHIS,
MAYOR
RECEIVED
CITY CLERK OFFICE
DATE f -a 9 9 7 LL? o a^^
Gran. MaYoY E3oa.l5