Jonesboro holds public hearing on $16 million revenue bond to fund E911 center, roads and trails

Jonesboro Mayor opened a public hearing May 20, 2025, on a proposed $16 million revenue bond package intended to fund an E911/public safety center, the Caraway Road expansion and a suite of trails and parks projects.

The bond package, Mayor said, will be repaid from existing franchise-fee revenues and “does not represent a tax increase or a cost increase to the public.” The mayor added the bond “does not authorize purchase of property,” and that construction proceeds must be expended within three years.

The bond proposal would fund an estimated $5,500,000 E911/public safety center, a multi-stage widening of Caraway Road that could be advertised for bids as early as fall 2025, and several pedestrian side-path and trail projects tied to the city’s long-range trail network and a planned $2,000,000 park expansion on roughly 18 acres (the presentation said the park could expand to about 23 acres). The city presented a total project budget of $16,000,000 with roughly $1,500,000 set aside for cost absorption.

Why it matters: Council officials said the package accelerates projects that have been discussed for more than a year and, in some cases, for more than a decade. City staff and outside advisors framed the bond as a way to obtain a lump sum now to build projects rather than waiting to fund them piecemeal.

Paul Phillips, the city’s financial advisor, described the planned timeline for the transaction and steps the city will take with insurers and rating agencies. “I feel real confident that we’ll get a double A credit rating by virtue of a credit enhancement from Assured Guarantee,” Phillips said, explaining that the city expects an insurance commitment around June 3, an offering document on June 9 and a return to council on June 17 with a bond ordinance containing final terms. Phillips said the sale would be completed in mid-July, with a targeted closing on July 22 and proceeds available for construction after closing.

Phillips and other presenters told council that, because of market volatility, the city would be asked to consider all three readings of the bond ordinance on June 17 plus an emergency clause so final terms determined the day of sale can be inserted immediately into the ordinance.

The mayor said the public-safety center would be a single-level, hardened facility meeting strict design criteria and that earlier technology upgrades funded with ARPA dollars could be moved into a new facility once it is built. Council members asked the mayor to form a task force to recommend possible locations for the new center; the mayor said he appointed a task force consisting of city council committee chairs, with Councilman Emmerson (public safety chair) agreeing to chair the work and Mayor Pro Tem Councilman Moore to assist. The mayor said the committee will interview architects, engineers and public safety staff and that location decisions will be made by the council process.

Project timing presented to council included side-path construction schedules: Jefferson Side Path in summer 2025, Johnson Side Path in summer 2026 and Prospect Road work planned to begin in winter 2026. Caraway Road was shown in a three-stage illustration (two-lane to three-lane to five-lane as the project progresses toward Caraway Road and I-555). The presentation showed existing trails, funded trails, and trails proposed for funding with the revenue bond, connecting city neighborhoods, Arkansas State University, downtown Jonesboro and Craighead Forest Park.

The mayor reiterated that repayment would come from franchise-fee revenues collected from utility providers for right-of-way use, not from project-specific revenues, and noted the city is using roughly 70% of the available franchise-fee capacity for the plan (the mayor attributed the franchise-fee figure to staff). The packet and presentation state the bond proceeds must adhere to the city’s standard purchasing and procurement guidelines.

No final vote on the bond was taken at the May 20 hearing. The council heard the presentation, questioned staff and advisors, and was told the council will be asked on June 17 to adopt the bond ordinance — likely on three readings with an emergency clause — after the underwriters complete a sale and final numbers are available.

What’s next: City staff and bond advisors expect an insurance commitment in early June, the distribution of a final offering document to potential investors in mid-June and a June 17 council session to consider final bond documents; closing is targeted for July 22, 2025.