§ 14-302-110 — Use of street and parking revenues for the payment of bonds issued

The municipality involved may pledge and use all or any part of the following street and parking revenues for the payment of bonds issued by it as follows: (1) In the case of a parking project or of a street and parking project, the municipality is authorized to fix charges for the use of the off-street parking facilities and to pledge to, and use the net revenues derived therefrom for, the payment of the principal of and interest on the bonds. In that event, the municipality shall include a covenant in its contract with the bondholders that it will always operate the off-street parking facilities as a revenue-producing undertaking so long as any bonds issued by it under the authority of this chapter shall be outstanding, and that it will fix and collect charges for the use of the off-street parking facilities which will produce revenues at least sufficient to provide for the payment of any operation and maintenance expenses of the off-street parking facilities and leave a balance of funds which, together with other street and parking revenues specified in this section which it may pledge, will provide for the payment of the principal of, interest on, and paying agent's fees in connection with the bonds as they become due, and for the maintenance, at the required level, of a debt service reserve, if one is provided for. (2) (A) In the case of a street project or of a street and parking project, the municipality is authorized to pledge and use all, or any part, of the net parking meter revenues derived from any or all parking meters in the municipality. As used in this section, "net parking meter revenues" means gross revenues derived from the operation of the parking meters, less the total of the following: (i) The amounts, if any, required to be paid on a current basis on any indebtedness incurred in the acquisition of the parking meters; (ii) The amounts of the costs of operating and maintaining the parking meters; and (iii) If there are outstanding bonds to which a pledge of parking meter revenues has been made, the amounts required to be used for the timely payment of the principal, interest, and paying agent's fees on the outstanding bonds and for the maintenance at the required levels of any reserves or other funds specified in the authorizing ordinance or in the pledge securing the outstanding bonds. (B) In the event net parking meter revenues are pledged and used, as authorized in this section, the municipality shall include a covenant in the contract with the bondholders that it will always operate its parking meters as a revenue-producing undertaking so long as any bonds issued by it under the authority of this chapter shall be outstanding and that it will fix and collect parking meter revenues in such amounts that net parking meter revenues, together with any other street and parking revenues specified in this section which it may pledge, will provide for the payment of the principal, interest, and paying agent's fees in connection with the bonds as the bonds become due, and for the maintenance, at the required level, of a debt service reserve, if one is provided for. (3) In the case of a street project or a parking project, or of a combination thereof, the municipality is authorized to pledge and use all, or any part, of the amounts at any time received from the Treasurer of State as municipal aid derived from the Arkansas Highway Revenue Distribution Law, as from time to time amended, § 27-70-201 et seq., or under any law replacing or intended as a substitute therefor which specifies the distribution of motor fuel taxes and motor vehicle registration and licensing fees. The treasurer of any municipality which shall have so pledged its municipal aid turnback for the bond payments pursuant to an executed bond ordinance shall withhold each month from the municipal aid turnback transfer for deposit in a special account within the municipality's street fund an amount sufficient to meet the current month's payment for the principal of, interest on, and paying agent's fees therefor. This payment shall be paid directly to the trustee, or other custodian of street and parking revenues, designated in the authorizing bond ordinance. So long as any bonds issued under the authority of this chapter shall be outstanding, if any changes are made by the General Assembly in municipal highway turnback revenues, or in the applicable highway revenue distribution law, the changes must be such that substantially the same amount of municipal highway turnback revenues pledged to outstanding bonds will be received by the municipality involved as would have been received had there been no changes.

Legislative History

Acts 1967, No. 317, § 7; 1977, No. 476, § 1; A.S.A. 1947, § 13-1707.