Council approves $10 million sewer revenue bond after wastewater director details strong debt-service metrics

The City Council adopted an ordinance authorizing issuance and sale of $10,000,000 in sewer revenue bonds (Series 2025) to fund extensions, betterments and improvements to city sewer facilities.

City staff opened a public hearing on the first reading of O2585 and called for speakers; none appeared. Michael Clayton, executive director for North Little Rock Wastewater, briefed the council on the utility's financial metrics. Clayton said the department's debt service coverage ratio was 2.88, well above a commonly used benchmark of about 1.1. "What we have is 2.88, which is 288%, which is a very healthy number," Clayton said. He compared per-customer outstanding debt — $1,714 per customer after the proposed borrowing — to Little Rock's approximately $8,474 per customer and said the difference reflected substantial borrowing capacity.

Council members asked procedural questions and said Clayton's briefing increased their comfort with the additional borrowing. After suspending readings, the council voted to adopt O2585 and invoked the emergency clause to put the ordinance into immediate effect.

Actions tied to O2585 include authorization for execution and delivery of a bond purchase agreement, approval of the official statement and a continuing disclosure agreement. Council discussion and Clayton's presentation focused on financial capacity and credit considerations; no public opposition was presented at the hearing.

Ordinance O2585 was adopted by voice votes recorded in sequence during roll call. The council recorded affirmative votes and stated the emergency clause was adopted as well.