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Board approves $61.695 million bond issuance and hires municipal advisor
Summary
The North Little Rock School Board approved a resolution to issue $61,695,000 in construction bonds for athletic facilities and Old Main renovations, and contracted First Security Beardsley as municipal advisor and fiscal agent; advisers noted IRS spending rules and a 30-year borrowing example at 4.56% interest.
The North Little Rock School Board voted March 31 to approve a bond resolution authorizing the issuance and delivery of up to $61,695,000 in construction bonds (Series B) to fund a new athletics complex and renovations to Old Main and related capital projects.
School finance advisers explained the legal limits and practical constraints tied to tax-exempt municipal borrowing: proceeds must be used for the purposes presented to voters and spent within IRS timelines (commonly three years) to preserve tax‑exempt status. The district's municipal advisor explained the timing and strategy: part of the package had been issued earlier to harvest a beneficial bank-qualified break on a small piece; the current approval completes the voter‑authorized program and funds site work and vertical construction.
Explaining tradeoffs, an adviser said: "You're able to borrow for 30 years at 4.56% interest," noting the district will pay semiannual interest and must track project expenditures and arbitrage rules required by federal tax law.
The board approved the resolution and then voted to employ First Security / Beardsley as municipal advisor and fiscal agent for a three-year term (90‑day cancellation clause included). Board members also approved contracting bond counsel and housekeeping steps needed to close the transaction; the newly elected president and secretary were expected to sign the closing documents following the meeting.
Board members asked about scheduling, contingency funds and where to review project budget tracking; district staff said they will present a construction-budget deep dive at a future board workshop and that an owner’s representative and architect are managing pay apps and contract compliance.
Votes: the bond resolution and the municipal‑advisor engagement passed on board votes during the meeting. District leaders said work will proceed as contractors are selected and coordination with asbestos abatement and demolition completes the site-preparation phase.
