TEXARKANA, Ark. -- During a meeting Tuesday, the city Board of Directors passed an ordinance issuing $650,000 in bonds to fund improvements to Front Street Festival Plaza.
With Ward 4 Director Ulysses Brewer absent, the board voted unanimously to take on the debt. Commercial National Bank submitted the winning proposal to issue the bonds, with an interest rate of 3.47%
In November, the board passed a resolution increasing from $400,000 to $650,000 the amount to be borrowed. The board approved the lower amount as part of the current fiscal year's budget, but unexpected increases in building costs prompted City Manager Jay Ellington's request for more funding.
The city will use a financing option provided by the Arkansas Constitution's Amendment 78, passed in 2005, to borrow the funds. The amendment allows cities to create redevelopment zones and issue bonds to fund improvements in them. Any increases in property tax revenue within a redevelopment zone after its establishment are then used to repay the bond debt.
Plans to be paid for with the debt include a roofed scaffolding structure around the plaza's stage to facilitate sound and lighting equipment, as well as sponsor advertising; fencing around the area; and barriers called bollards to control traffic.
The ordinance was the only item on the agenda for the meeting, which lasted less than 10 minutes. The board's next meeting is scheduled for Dec. 19.