The North Little Rock City Council last week unanimously approved a proposal by Mayor Patrick Hays to issue $7 million of five-year sales tax bonds that will provide $750,000 for a pedestrian and bicycle bridge over the Arkansas River.
The renovated railroad bridge would link the city with the Clinton Presidential Center in Little Rock.
The package includes $5 million of capital improvement bonds and $2 million for parks projects. The capital improvement bonds will also finance the purchase of police cars and fire trucks and street repairs. The debt will be supported by a portion of the city’s 1% sales tax earmarked for capital projects.
The $2 million of parks bonds will provide funding for the repair of recreational center roofs and completion of a baseball complex. They will be supported by the sales tax for the first two years, and then by revenues from the city’s food and hotel tax for the remaining two years.
Finance director Bob Sisson said his projections show that the city will have sufficient sales tax revenues to support the bonds over the next five years as existing debt is retired. He told the city directors that three bond issues from 2005 would mature in 2010, freeing up some $2.8 million for debt service on the new debt.
The sales tax provides 20% of the city’s operating budget of $53.5 million.
