The Arkadelphia Board of Directors will convene at 5:30 p.m. Tuesday to finance improvements to the city’s water and sewer utilities.
Directors will first consider declining a $4.25 million loan from the state Department of Agriculture that would fund upgrades to the city’s water metering system. A memo to directors from City Manager Gary Brinkley notes that, in order to meet requirements from that 20-year loan, the city might have to raise its utility rates by 41%.
RELATED: City officials on fence about $4.25M loan to upgrade water meters
And, because directors recently approved a $1.9 million loan from the state’s Natural Resources Division for a sewer lift station, city administrators will not recommend a loan for the meter upgrades.
Brinkley is asking directors to instead disregard the latest loan offer in lieu of a $10 million bond issuance.
A public hearing on the bond issuance will be opened prior to a presentation from Jason Holsclaw of Stephens Inc.
Directors have been presented with a 32-page ordinance outlining the bond agreement. Brinkley is requesting that the city board suspend procedural rules in order to adopt the ordinance tonight.
The meeting is open to the public.