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Officials outline timeline to sell revenue bonds for city capital projects; council told three readings with emergency clause likely June 17
Summary
City financial advisor Paul Phillips and bond counsel summarized a plan to sell revenue bonds, seek credit enhancement, distribute an offering the week of June 9, and return to council June 17 with final bond terms — requiring three readings and an emergency clause that night.
City financial and legal advisers summarized a near‑term schedule on June 3 for issuing revenue bonds to fund capital improvement projects, telling the Jonesboro City Council the city could finalize bond terms and close the financing by late July if the schedule holds.
Paul Phillips, the city’s financial advisor from Cruz and Associates, told council he had begun discussions with insurers and rating agencies and expected to secure a credit enhancement that could deliver a double‑A rating. “We’ll get a double a credit rating by virtue of a credit enhancement from Assur Guarantee,” Phillips said.
Phillips outlined a timetable: secure insurance commitment by June 3 (the presenters said they had assurances); produce a final offering document by June 9 and solicit investor feedback for roughly a week; hold a sale morning on the day proposed for June 17; and return to council that evening with a final bond ordinance containing the sale’s finalized interest rates, call provisions and other terms. Phillips said that because market rates can be volatile, the council would be asked to take three readings of the ordinance plus an emergency clause on June 17 so the city can adopt final terms immediately after the sale. If the plan proceeds, closing would occur July 22 and construction funds would be available thereafter.
The mayor and council framed the process as a transparency priority and emphasized the projects’ life‑safety focus. Bond counsel Ryan Bowman and underwriter Michael McBride joined Phillips at the dais and were introduced for questions.
What it means: If the planned timeline and insurance commitment hold, the city will have a narrow window between preliminary sale orders and final adoption that requires the council’s temporary use of an emergency adoption clause to lock in rates at the time of sale. City staff said they will distribute the draft ordinance packet with blanks for rates prior to June 17 and provide a blackline showing any changes after the sale.
Next steps: Staff will continue insurer and rating discussions, prepare the offering document for June 9 distribution, and return on June 17 with the final bond ordinance for council action.
