GENTRY — The Gentry mayor was authorized at a special meeting on Aug. 8 to sign documents to refund city water bonds at a lower interest rate if the savings to the city are significant enough to warrant the refinancing.
Kevin Faught, representing Stephens Inc., the city's contracted financial manager, explained that savings to the city could be as high as $539,000, based on interest rates on Aug. 5.
The ordinance passed on three reading with a single vote and with an emergency clause, authorized the issuance of up to $3.65 million to refund water and sewer revenue bonds. The bonds which may be refunded include two water bonds through the Arkansas Natural Resources Commission taken out in 2008 and two through USDA Rural Development which were taken out on 2003 to build the city's water system extensions to the east and to the west side of Gentry.
The city plans to pay off a small fifth bond on which it owes approximately $64,000.
A special council meeting was called to pass the ordinance and emergency clause in an effort to get the lowest possible interest rate and the greatest savings for the city because of uncertainty about how long interest rates will remain low.
Faught said the sale date of the bonds could come as soon as Sept. 6 with a closing date by Sept. 27.
Approved by the council at its Aug. 1 meeting was a resolution stating the city's willingness to consider a proposal from the Arkansas Natural Resources Commission for refunding a water system bond and refinancing it at a lower interest rate. The purpose of refunding the bond would be to save the city money by obtaining a lower interest rate and freeing up money for the ANRC to loan for other projects.
The resolution did not commit the city to accepting a proposal but only expressed the city's interest in pursuing the refinancing option. And, the later action of the council might refund this and three other bonds under one new bond.
The council also selected three professionals with which the mayor was authorized to negotiate a contract for services to explore options for refinancing other city water bonds held through the ANRC and the United States Department of Agriculture. The professionals selected were Stephens Inc., Crews and Associates and Raymond James. The mayor was authorized to negotiate a contract with one of the professionals selected but had to begin with the first selection, then the second and finally the third.
Stephens Inc. was used by the city in 2013 when it was looking at refinancing the two bonds with the USDA for the water system on the west side of Gentry and the firm was again selected for the current financial services.
The city chose not to seek refinancing in 2013 because the savings would have been small at that time. But savings look much more promising for the city now, with interest rates low.
A resolution was passed Aug. 1 authorizing the city to pay up to $80,000 for a paving project on SWEPCO Road and Taylor Orchard Road. The road repair and repaving project was from the intersection of SWEPCO Road and Pioneer Lane (next to the high school practice field) to the corner of Taylor Orchard and Marion Lee Roads (at the corner where the Gentry Fire Department substation is located). Benton County did the repair and paving work and the city of Gentry was to pay for materials for that portion of the roadway inside the city.
A portion of the road just west of Crowder Avenue and to the railroad overpass on Taylor Orchard Road is in the county and the county is paying for both materials and labor for work there.
The city's cost was estimated to be close to $73,000 for materials used inside the city. The amount is in the current city budget for road and street repair but was approved by the council for the project. The amount of $80,000 for materials was requested for the project so that there would be a little extra in case additional materials were needed to complete the paving project.
Kevin Johnston, Gentry's mayor, called the project a bargain for the city since the county is providing the labor and equipment without charge to the city. He also said SWEPCO may contribute toward a portion of the costs since the street and road were heavily used during the retrofit project at the Flint Creek Power Plant.
The council approved a resolution to apply for a $15,000 Arkansas Rural Community Grant to build trails at the Flint Creek Nature Area. The city would have to match the grant with another $15,000 .
Johnston reported that the city had $50,000 in donations to build the nature trails at the Flint Creek Nature Area and would be putting the project out to bid soon. Johnston said $30,000 had been given by the Jack McKee Foundation and another $20,000 was pledged from Gentry United Way for the trails. If the city receives the grant, the city's matching portion could be met using existing funds given or pledged for the project.
Johnston said the trail would be asphalt and could be a part of a larger trail system being planned in the future to connect Gentry and Siloam Springs with paved trails. Sidewalks already extend south along Arkansas Highway 59 to near East Dawnhill Road.
The council also authorized the mayor to enter into a cooperative agreement with the Wayfinding Project for signs in the city directing people to the Northwest Arkansas Regional Airport and to Siloam Springs from the airport but also pointing the way to selected locations in Gentry. The signs will be provided without charge to the city but the city then becomes responsible for the upkeep and maintenance of the signs.
General News on 08/17/2016