The following is duplicated from page 247 of the City’s Agenda

PLEASE NOTE THAT NO PART OF THE CITY’S PORTION

IS PROGRAMED FOR THE JAIL CONSTRUCTION

Preliminary Information Regarding City of Hot Springs’ and Garland County’s Portion of New ½% County Sales and Use Tax

a.) County will issue sales tax bonds to finance jail and County communication equipment. The jail bonds will have a term of approximately 20 years and the communication equipment bonds will have a term of approximately 15 years. The bonds will be repaid with a portion of the County’s collection of the annual tax revenues.

b.) County will use balance of its portion of annual tax revenues for jail operation and maintenance.

c.) City of Hot Springs will issue sales tax bonds to finance City communication equipment. The bonds will have a term of approximately 15 years and will be repaid with a portion of the City’s collection of the annual tax revenues.

d.) City of Hot Springs will use balance of its portion of annual tax revenues as follows:

1.) During jail construction, the balance of Hot Springs’ portion of annual tax revenues (after radio bond payment is paid) will be used to construct fire department facilities and to address other public safety needs. It has been assumed that the balance of the City’s portion of annual tax revenues will be used for these purposes during the first two years that the new tax is collected.

2.) Once jail construction is completed, the balance of Hot Springs’ portion of annual tax revenues will be remitted to the County and applied towards jail operation and maintenance, according to a written agreement between the County and City.