Jonesboro, AR — (JonesboroRightNow.com) — June 19, 2025 — The Jonesboro city council on Tuesday, by a vote of 9-3, approved a $17.5 million revenue bond ordinance, which provides funding for various capital improvement projects.
The bonds fund “shovel-ready” projects: the construction of a new E-911 Center, expanding Caraway Road, and building new pedestrian and bike-friendly trails. All three projects are estimated to cost $16 million, with an additional $1.5 million allocated for any unexpected costs.
In a previous public hearing presenting the bonds, Mayor Harold Copenhaver said this would not result in a tax increase for the public. They are leveraged through financing from municipal revenue bonds, which are backed by franchise fee revenue.
According to a Wednesday news release from the city, the plan has been in the works since September 2023. The city council passed an authorizing resolution in September 2024 but delayed presenting the bonds due to the general election.
“While revenue bonds are a typical funding source for major improvement projects in many cities, Jonesboro has not utilized this method in more than three decades,” the news release said. “The bond is funded by pledging non-tax dollar franchise fees already paid to the city, primarily by utility companies who utilize city rights-of-way.”
The bonds are AA-insured through the Assured Guaranty Corporation with an interest rate of 4.96%.
Due to market volatility and to lock in bond interest rates, the council waived second and third readings, allowing for immediate approval. An emergency clause was also included in the ordinance. Paul Phillips, a financial adviser with Crews and Associates, said this was customary.
Ordinances must typically have a reading at three separate meetings before a final vote is taken and go into effect after 30 days if approved. An emergency clause allows the ordinance to go into effect immediately.
During discussion of the ordinance, councilmembers Dr. Anthony Coleman and David McClain questioned why it was being read once.
Michael McBryde of Stephens Inc., one of the bond underwriters, reiterated that three simultaneous readings and an emergency clause were standard practice, adding that if the city waited to do second and third readings, interest rates could increase.
Ryan Bowman, an attorney for Friday, Eldridge & Clark Law Firm, representing Stephens Inc., also said the rates presented to the councilmembers were only good that night.
“This is how it’s always done. If you move to a … second, third reading, every investor that has bought in and is expecting to have their tickets written tomorrow will go away,” McBryde said. “It more than likely means your rates would go substantially up, because there are going to be less people willing to buy your bonds.”
Dr. Anthony Coleman also questioned why a location had not yet been selected for the E-911 Center, which the bonds provide funds for the construction of. However, the bonds do not authorize purchasing property.
The location for the new E-911 Center has yet to be determined. During the previous public hearing to discuss the bonds, a task force was established to select a final location. The task force, chaired by councilmember Brian Emison, first met June 3 and said it would work to gather advice from engineers, architects, and city and county officials to determine a location.
The center will either be adjacent to the Jonesboro Police Department, located at 1001 Caraway Road, or on city-owned land on the 400 block of West Washington Avenue. The city would have to purchase the land by the police department. No other locations are being considered.
“I don’t quite understand, how are we paying for a building to be built and we have not decided where it’s going to be?” Dr. Anthony Coleman said. “When I’m asking this question, that’s why I’m asking [about] the procedural efforts, because I’m thinking, ‘OK, it’ll give us at these three readings, at least give us some time to figure out where we’re going to put the building.'”
Councilmember Chris Moore, a member of that task force, responded that he felt “quite confident” that the task force members would reach a final location decision within the next two to three weeks and bring it to the full council.
McClain, Dr. Anthony Coleman, and L.J. Bryant voted against the ordinance. All other councilmembers voted in favor of it.
“We have a moral responsibility to prioritize these projects,” Copenhaver said. “We have lots of needs, lots of needs, as a city, but these have repeatedly been discussed and prioritized between conservations with council, committees and public input meetings. This revenue bond gives us the ability to save lives without increasing taxes. I think we owe it to the residents to invest the safety of our community and Jonesboro families.”
Read more about the project here.