SPRINGDALE -- The city will have $314,905,000 deposited into its bank account on Aug. 10, said Bob Wright of Crews & Associates.
Wright reported Tuesday night to the City Council the results of the day's earlier sale of bonds. The bond sale -- not to exceed $360 million -- was approved by city voters in May.
The final interest rate was 4.86%, Wright said. This means the city will pay back the principal loan in addition to 4.86% of the loan's total, he continued.
"It's like Springdale just got a 30-year loan at 4.86%," Wright said. "That's a very good rate because the less the city has to pay back, the more projects the city can complete."
Last week, Wright announced the city had earned an A+ bond rating from S&P Global Ratings.
"That's very strong credit, and we're very pleased with that," Wright said. "We expected it to be lower than that, an 'A.'"
The nearly $315 million raised by the bond sale would provide $13 million to fully fund park improvements the city proposed, as well as $15 million to fully fund a new senior center and $7 million to fully fund a new fire station and other training structures for the Fire Department.
The bond sales also would give the city $109 million for street projects, Wright said.
"If you approve the sale of these bonds tonight, on Aug. 10, we will coordinate with New York to get this closed, hand over checks to pay off the two previous bond debts and deposit the money in the city's account that day," he said before the vote, which did pass.
The nearly $315 million of the 2023 bond also will pay $138 million to refinance debt on 2018 bonds and $42 million for the 2020 bonds.
Wright said the payoff of the previous debt will save the city more than $5 million per year in its general fund.
Wright said he, Kevin Faught at Stephens Inc. and their staffs have worked for several weeks to advertise this coming sale of bonds and expected many orders.
The sale opened at 9 a.m. Tuesday, Wright said. Orders came in from 80 different accounts, totaling $966 million, he noted.
Because the city did not have that much opportunity to sell, interest rates were lowered, and some customers backed off, Wright said.
The list of orders came from well-known national investment firms like The Vanguard Group, Guggenheim Investments and Stifel Financial, Wright noted.
Banks from around the state also placed orders for the Springdale bonds, including Arvest Bank, Malvern National Bank and Bank OZK, he continued.
And individual investors -- the "mom and pop" investors, wanting to invest in their city -- placed orders for $3.1 million, Wright said.
"That speaks well of the city," Wright said. "It means the city has been on the mark about the several previous bonds. They see what the city has done with its proceeds."
"This is one of the most important steps our city has ever taken," said Colby Fulfer, the mayor's chief of staff.
"Our residents said 'yes' to investing in our street and road infrastructure, our senior citizens, our first responders and our parks and recreation opportunities. All of these bond issues help us take a step towards raising the quality of life for our city," he said.
"We can't say 'thank you' enough to our residents for entrusting us with their tax dollars," Fulfer continued. "We've tried to build trust with our residents by having a balanced budget and being good stewards of our previous bond programs."
In other business, the council:
Approved the appointments of Jim Ulmer and Jason McMullen to the Airport Commission. They replace Neil Johnson and Bill Schoonover, who both retired after serving a combined 40 years. Ulmer is an engineer with Olsson, and McMullen teaches math and aviation at Har-Ber High School.
Accepted a donation of $760,000 from Robin A. and Gary C. George with which the city will purchase 7.31 acres to the south and east of Bluff Cemetery for extension of the cemetery.
Approved two $250,000 contracts with Miller Boskus Lack Architects for design of new Fire Stations 4 and 10. Fire Station 4 will be built on West Huntsville Avenue with money from the city's general budget, and Fire Station 10 will be built in north-central Springdale with money from the 2023 bond.
Approved a five-year, $4.5 million contract with CARDS Holdings of Springdale for weekly residential solid waste removal and recycling.
Authorized the Public Works Department to spend up to $10,000 for installation of temporary speed tables on Lakeview Drive. The city also recently installed a new four-way stop at the intersection of South Turner Street and Lakeview Drive.