§ 3.28.06. Administration of funds.

A.

There is hereby created the city advertising and promotion fund, to which fund there shall be credited all collections of the tax levied by this ordinance.

B.

The commission is the body that determines the use of the city advertising and promotion fund.

C.

All funds credited to the advertising and promotions fund pursuant to this ordinance shall be used for advertising and promoting the city and its environs or for the construction, reconstruction, extension, equipment, improvement, maintenance, repair, and operation of tourist promotion facilities in the city, and facilities necessary for, supporting, or otherwise pertaining to, the city parks system, or for the payment of the principal of, interest on, and fees and expenses in connection with, bonds as shall be determined by the advertising and promotion commission.

D.

Pursuant to this ordinance and A.C.A. § 26-75-606(a)(2) as may be amended from time to time, if the commission determines that funding of the arts is necessary for or supporting of its city's advertising and promotion endeavors, it can use its funds derived from the hotel and restaurant tax.

E.

The commission may engage such personnel and agencies and incur such administrative costs that it deems necessary to conduct its business, including payments to city for administrative duties reasonably incurred on behalf of and for the benefit of the commission pursuant to agreement entered into by the city and the commission. Such bonds may be authorized only pursuant to an ordinance adopted for that purpose by the city council and approved by a vote of the people.

F.

The commission may not use proceeds from the tax for:

1.

General capital improvements within the city;

2.

The costs associated with the general operation of the city;

3.

General subsidy of any civic groups or chamber of commerce.

G.

The commission may contract with groups to provide the commission actual services that are connected with tourism events or conventions; and the authorization and limitations contained in this subsection shall be reasonably construed so as to provide funds for promoting and encouraging tourism and conventions while not allowing such special revenues to be utilized for expenditures that are normally paid from general revenues of the city.

H.

The funds collected pursuant to the taxes levied by this ordinance and allocated to the advertising and promotions fund may be used for any purposes identified and authorized in A.C.A. § 26-75-606, as may be amended from time to time by the general assembly of the state.

(Ord. No. 2017-38, § 6, 12-19-2017)