Maumelle voters asked to reauthorize half‑cent sales tax to back new bonds

Maumelle Mayor Caleb Norris opened a public hearing on three ballot measures and said issue one is the legal prerequisite for financing any of the other projects on the ballot. “If you don't want any of the projects, great. Vote against issue one,” he said, stressing that issue one enables the city to issue new bonds backed by a half‑cent sales tax.

Liam Bernat of Stevens, the city's bond consultant, told attendees that Arkansas law requires a public vote to pledge tax revenue to repay debt: “In Arkansas, the pledge of any tax to repay debt requires a vote of the people.” He explained that issue one would replace the old half‑cent tax with a new half‑cent sales tax and allow the city to issue bonds that would (a) pay off outstanding 2018 bonds and (b) fund the specific projects that voters approve on the ballot.

Bernat and council members walked through illustrative financing scenarios and debt mechanics. He said investors expect a call (optional redemption) date frequently in the 5–10 year window; the stated maturity of the new bonds could be as long as 35 years depending on how many projects are funded, but because 100 percent of the dedicated tax would go to debt service the projected payoff under conservative revenue assumptions was estimated in the 20–27 year range. Bernat noted typical cost of issuance (underwriter discount, bond counsel and related fees) is roughly 2 percent of the issue.

Resident Mr. Mosley pressed city leaders on whether authorizing the tax would “tie up that sales tax for a long time” and jeopardize future, large projects (for example, a possible interchange). Mayor Norris and staff said the city is aware of other long‑range needs — notably a planned Fire Station 3 anticipated in about five to seven years — and that some other bonds (franchise‑fee backed) are expected to pay off in a similar timeframe, which could free capacity for future capital needs.

City leaders emphasized the distinction between capital financing and operating budgets: bond proceeds fund construction and not ongoing personnel costs. They said most projects proposed (street overlays, the scaled therapy pool, artificial turf) are not expected to add substantial recurring staffing, though Fire Station 3 would require ongoing operating resources and was intentionally scheduled later to align with other debt payoffs.

No formal vote occurred at the hearing. Issue one, if approved by voters, would authorize the city to issue bonds secured by a half‑cent sales tax; the city council and bond counsel would still set the final structure, term and sale logistics through later public financings and required disclosures.