Bella Vista City Council Reviews Bond Issuance for Major Facility Improvements

In a move to support critical infrastructure improvements, the Bella Vista City Council has approved the issuance and sale of a $5.4 million Capital Improvement Revenue Bond. The funds will be used to finance upgrades to Fire Station No. 1, city administration buildings, and related infrastructure projects, including new equipment, furnishings, parking, lighting, and utility improvements.

The bond, valued at $5,407,352, will be repaid through franchise fees collected from public utilities, ensuring that the city’s taxpayers are not directly burdened by the repayment. Interest on the bond is set at 4.13%, with the principal maturing in December 2034. Interest payments will be made semi-annually, beginning June 1, 2025, and the bond will be eligible for optional and mandatory redemption prior to maturity.

City officials highlighted the necessity of these improvements, particularly for Fire Station No. 1, which requires modernization to continue serving the community effectively. The bond will also cover road and utility improvements related to the project, ensuring that essential infrastructure is in place to support the expanded facilities.

The project will move forward under a strict timeline, as the ordinance was declared an emergency to address pressing safety concerns. This designation allows the bond to take effect immediately, enabling the city to begin work on the upgrades as soon as possible.

The bond sale process followed the City’s standard Request for Qualifications (RFQ) protocol for procuring professional services, ensuring transparency and compliance with state law. The contract is contingent upon the closing of funding from the Arkansas Natural Resources Commission (ANRC), after which a budget adjustment will be made to reflect the bond's inclusion.