Fayetteville, Arkansas, voters OK $335.5 million of bonds

Voters in Fayetteville, Arkansas passed a $335.5 million bond program last week that keeps in place a 1% special sales tax to pay off the debt.

Proceeds are earmarked for water, sewer, parks, animal services, pedestrian infrastructure, recycling and fire safety projects, with $61.9 million allocated for an aquatic recreation center.

The bond package will result "in modern facilities and services that match the scale of a city that now exceeds 100,000," according to Mayor Molly Rawn.

"This bond was built strategically and always with the heart of Fayetteville in mind," she said in a statement. "Each project was informed by data, shaped by public input, and grounded in the plans our city has committed to."

Key to the 2026 bond program was voter approval of a ballot measure to refinance up to $40 million of outstanding sales and use tax capital improvement bonds from the city's previous debt program and to extend the 1% sales tax.

A detailed plan for issuing the new money debt, including the size and timing of an initial deal to be sold through Stephens Inc., is expected by May 15, according to a city spokesperson.

City voters approved $226 million of sales tax-backed bonding authority in 2019.

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.