Conway council, bond counsel and public weigh proposed sales-tax package for amphitheater, public safety and streets

Mayor Bart Casselberry and members of the Conway City Council spent the meeting publicly outlining options for a proposed sales-tax increase that could pay for an amphitheater and convention center, public safety capital and street improvements, but they did not take any formal vote.

The council heard a legal briefing from bond counsel Gordon Welborn, who told the council that bond-funded projects and pay-as-you-go sales-tax revenue fall under different parts of Arkansas law and that “the bonds are under act 871, and that is a debt service tax, that can only be used to pay debt service on the bonds.” He also warned of federal tax restrictions on tax-exempt bond proceeds, including a requirement to show a “reasonable expectation to spend that money in 3 years” before issuing tax-exempt bonds.

The exchange laid out two main choices the council has discussed: selling bonds supported by an…