Bond election is today in Bentonville

File Photo/NWA Democrat-Gazette/ANTHONY REYES @NWATONYR The Bentonville City Hall building in downtown Bentonville.
File Photo/NWA Democrat-Gazette/ANTHONY REYES @NWATONYR The Bentonville City Hall building in downtown Bentonville.

BENTONVILLE -- Residents today will vote on whether to approve up to $266 million bonds for a host of city projects.

Early voting ended Monday with 456 votes cast, according to the Benton County Clerk's Office. The city has 29,955 registered voters.

The city seeks up to $266 million in bonds for capital projects and bond refunding to be financed by extending a 1% city sales tax. The extension of the sales tax is question No. 1 on the ballot.

Question No. 2 is to pay off $23 million in outstanding bonds. Questions 1 and 2 must pass for the other seven issues to be funded, even if approved. Bond refunding is the third largest expenditure on the ballot.

Streets, parks and recreation, new radio communications, police and fire training facilities, drainage upgrades and a library expansion are among the projects on the ballot.

Streets are the costliest project at $173.5 million and would pay for more than 30 street and intersection improvements if the bond issue passes. The second most expensive endeavor is park and recreation upgrades for $32.75 million.

The 1% sales tax was approved in 2003 and was extended in 2007.

Eighty percent of the revenue raised by the city's 1% sales tax for capital expenses goes to pay for bonds and 20% goes to ongoing needs. The city would maintain the same ratio if the sales tax is extended, said Jake Harper, city director of finance and administration.

The 1% sales tax brought in $16.9 million last year, he said. If approved, the tax would expire in 2046. It's set to expire now in 2032.

The city could see a bond interest rate of between 3% and 5% if the measures passes, said Kevin Faught, the city's bond adviser. The schedule, assuming the vote is successful, is to offer the bonds for sale June 21, he said.

Voters in the other large cities in Northwest Arkansas passed ballot measures in 2018 and 2019 that extended sales taxes to repay outstanding bonds and issue new ones for a variety of projects.

Bentonville voters in 2007 passed a $117.9 million bond issue. The city issued four series related to that issue -- 2007, 2009, 2010 and 2017, Harper said. The debt is from the last three series, he said.

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The questions

The Tuesday special election ballot includes nine questions for Bentonville voters. Questions 1 and 2 must pass for the other issues to be funded, even if approved.

• Question 1: Extend 1% sales tax to support new bond issue

• Question 2: Refund existing bonds, $23 million

• Question 3: Streets, $173.5 million

• Question 4: Parks and recreation, $32.75 million

• Question 5: Radio communications $6.6 million

• Question 6: Police, $1.65 million

• Question 7: Fire, $3.9 million

• Question 8: Drainage, $19.75 million

• Question 9: Library, $4.97 million

The costs include the city’s municipal adviser’s estimate of closing/issuance costs and potential required debt service reserve.

Source: Special election sample ballot and Bentonville

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