Legal Notice
ORDINANCE #2020-02
AN ORDINANCE TO RATIFY AN EXISTING PRIVILEGE LICENSE TAX AND TO AUTHORIZE THE PLEDGE OF A SPECIFIED PORTION OF THE PROCEEDS THEREOF FOR THE HEALTHCARE AUTHORITY OF HALEYVILLE AND WINSTON COUNTY, ALABAMA
BE IT ORDAINED by the City Council of the City of Haleyville, Alabama (the “City Council”), as governing body of the City of Haleyville, Alabama (the “City”), as follows:
Section 1. Representations and Definition of Terms
The City Council has found and determined, and does hereby find, determine and declare:
(a) Pursuant to Article 3 of Chapter 51 of Title 11 of the Code of Alabama 1975 the City has provided for the levy and collection of privilege license taxes (the “City Sales Tax”) within the corporate limits of the City by Ordinance No. 2017-12, as true and correct copy of which is attached hereto as Exhibit A and made a part of this ordinance.
(b) Pursuant to Section 9-67 of Ordinance No. 2017-12 the City has provided for the allocation of a specified portion of the proceeds of the City Sales Tax for the use and benefit of The Healthcare Authority of the City of Haleyville and Winston County, Alabama (the “Authority”), a public corporation under Article 11 of Chapter 21 of Title 22 of the Code of Alabama 1975 (the “Authority Law”).
(c) Ordinance No. 2017-12 is in full force and effect without amendment thereto.
(d) The Authority has advised the City that the Authority needs to issue revenue bonds (the “Public Health Care Bonds”) pursuant to the Authority Law to provide for capital improvements to, and the operation and maintenance of, the public health care facilities of the Authority.
(e) The Authority has advised the City the Public Health Care Bonds will never constitute a direct, indirect, or contingent pecuniary liability or obligation of the City or a charge against the credit, funds, or revenues of the City.
(f) The Authority has requested the City, and the City finds and determines it is in the best interests of the taxpayers and citizens thereof for the City, to:
(1) amend Ordinance No. 2017-12 to:
(i) recognize the pledge by the Authority of the portion of the City Sales Tax allocated to the Authority for the benefit of the Public Health Care Bonds and all series of bonds issued by the Authority to refinance or refund the indebtedness originally evidenced by the Public Health Care Bonds, and
(ii) provide for the continued levy and collection of the City Sales Tax at rates sufficient to provide to the Authority each year proceeds of the City Sales Tax in an amount not less than the greater of 12.5 % of the net proceeds of such taxes or (ii) the difference between the County Tax Pledge of 2 mills on each dollar of taxable property in the County and 1.2 times the annual debt service of the Supplemental Indenture 2020-A and Supplemental Indenture 2020-B ; and
(2) ratify and confirm the levy and collection of the City Sales Tax on the terms of Ordinance No. 2017-12.
Section 2. Amendment of Section 9-67 of Ordinance No. 2017-12
The Council amends Section 9-67 of Ordinance No. 2017-12 by deletion of said Section 9-67 in the entirety thereof and substitution therefor of the following:
“Section 9-67. Use of Proceeds from Taxes Herein Levied; Duration of Levy of Taxes for Specified Purposes
(a) The proceeds from the taxes herein levied remaining after payment of the costs of collecting the said taxes, including without limitation all charges by RDS therefor, and paid on account of collection of the same, shall be applied each month as follows:
(1) there shall be delivered to The Healthcare Authority of Haleyville and Winston County, Alabama (the “Authority”) for use for the corporate and public healthcare purposes thereof as provided by law, an amount equal to the greater of the following (the “Healthcare Amount”): (i) the greater of 12.5 % of the net proceeds of such taxes or (ii) the difference between the County Tax Pledge of 2 mills on each dollar of taxable property in the County and 1.2 times the annual debt service of the Supplemental Indenture 2020-A and Supplemental Indenture 2020-B; and
(2) there shall be set aside in an industrial development fund for the economic and industrial development of the City, as the governing body of the City directs from time to time, an amount equal to 12.5% of the net proceeds of such taxes remaining after payment of the Healthcare Amount; and
(3) there shall be delivered to the City Board of Education of the City of Haleyville, Alabama, for use for the public educational purposes thereof as provided by law, an amount equal to 7.5% of the net proceeds of such taxes remaining after payment of the Healthcare Amount; and
(4) there shall be deposited in the General Fund of the City, for use for the lawful purposes of the City, an amount equal to 67.5% of the net proceeds of such taxes remaining after payment of the Healthcare Amount.
(b) The City of Haleyville covenants and agrees:
(1) to levy and collect the taxes levied pursuant to Section 9-60 of this Ordinance (i) at rates sufficient to provide to the Authority in each month an amount not less than the Healthcare Amount and (ii) for a period commencing on the date of adoption of this Ordinance and continuing thereafter until the principal of and interest on any obligations of the Authority and secured by a pledge of the Healthcare Amount shall have been paid in full or provision made therefor; and
(2) to provide the Healthcare Amount to the Authority each month pursuant to Section 9‑67(a); and
(3) the Authority may pledge and apply the Healthcare Amount for the benefit of any obligations of the Authority.
Section 3. Ratification of Ordinance No. 2017-12 and Taxes
(a) The Council ratifies and confirms the terms and provisions of Ordinance No. 2017-12 as amended by this Ordinance.
(b) The Council ratifies and confirms the assessment, levy and collection of the privilege license taxes pursuant to Ordinance No. 2017-12, as amended by his Ordinance, in all respects.
Section 4. Contract
The City covenants and agrees the provisions of this Ordinance shall constitute a contract with The Healthcare Authority of Haleyville and Winston County, Alabama.
Section 5. Repeal of Conflicts
All resolutions, ordinances and parts thereof in conflict or inconsistent with the provisions of this Ordinance are hereby, to the extent of such conflict or inconsistency, repealed.
Section 6. Effective Date
This Ordinance shall take effect upon publication hereof as provided by law.
The foregoing Ordinance is adopted on this 21st day of September, 2020.
Ken Sunseri
Mayor
Attest:
Christy Harbin
City Clerk
CH_Oct 21
1093