Arkansas city eyes $320 million bond election in 2026

Fayetteville, Arkansas, is gearing up to ask voters next year for $320 million of bonds for water, sewer, parks and other capital projects.

The city council, which held a workshop on the proposed debt package's framework this week, will decide next month whether to hold a bond election in March 2026. The bonds would be backed by an extension of a one-cent sales tax that also backed $226 million of bonds voters approved in 2019.

"This bond gives us the chance to keep moving forward, to protect what matters and to grow responsibly without raising taxes," Mayor Molly Rawn said in a statement.

Two-thirds of the proposed bond is dedicated to core infrastructure ? water, sewer and transportation ? according to the statement. Other projects include an aquatic center, a fire station and equipment, an animal shelter and recycling facilities.

"When we invest in reliable water and sewer, safe roads and accessible parks, we're building the foundation for families, businesses and Fayetteville's future," Rawn said.

Fayetteville last sold sales and use tax capital improvement bonds in a $15 million Series 2024 deal that was rated AA-minus by S&P Global Ratings with a stable outlook.

The city of 101,858 in northwest Arkansas had $87.58 million of sales and use tax bonds outstanding as of Dec. 31, according to its fiscal 2024 annual comprehensive financial report.