The mayor/city council unanimously voted to earmark one cent of the city's 2 cent sales tax to go towards debt reduction and for building infrastructure; but only after the emergency reserve fund reaches $7 million. Reserves are reportedly close to that amount now.
The other one cent will continue to go to the general fund, as before.
i Secdon 2. That the Treasurer for the City of Fairhopc is hereby instnrcted and
enporf,a. monttly to transfer any balance in excess of $7,000,000.00 in the Special Tax
Reserye Account according to thc following distribution:
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l.l Deposit one-half (ll2) of each month's cxc€ss over $7,000,000.00 (if any) into a
i Gencral Fund Reserve Account, specifically designated as Gencral Fund Debt Pre-
I payment Account. Funds in this General Fund Debt Pre-payment Account are to be
i
usod only for pr€-payment of existing debt of the Gcncral Fund.
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2.1 Dcposit onc-half (l/2) of each month's excess over $7,000,000.00 (if any) into a
I Gcneral Furd Rescrve Account, specifically designated as lnfrastructure
I Improvemcnt Spccial Account. Fmds in this Infrastructure Improvement Special
i Accourt ar€ to be used only for improverncnts to City streets, sidcwalks, parks, and
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UuininS, as approved by vote of the City Council.
WAL MART TOP CONTRIBUTOR
Since its inception in 2009, yearly sales tax receipts have totaled about $4.6 million/yr. -- with the lion's share provided by the Wal Mart Supercenter -- even though it is outside of the city limits-- and taxed at half the rate.
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