Area citizens invited to invest in $26 million bond issue
by August 14, 2009 9:19 am 72 views
The city of Fort Smith announced Friday (Aug. 14) a chance for individuals in the Fort Smith area to invest in the upcoming bond issue that will fund up to $30 million in water and sewer improvements.
Bond proceeds from the upcoming $26.405 million bond issuance will be invested in the ongoing upgrades to the city’s water and sewer system. A June 9 special election saw Fort Smith voters approve a measure to extend a 1% sales tax 18 months to raise up to $30 million needed to cover water and sewer improvements mandated by the federal government. The tax extension pushes from June 2012 to December 2013 the end of the 1% sewer improvements tax approved in 2006.
Since 2001, the city has made $100 million in improvements at water/sewer treatment plans and in the collection system. In 2001, voters approved (68% of the vote) $30 million in sales tax bonds, and voters approved in 2006 (75% of the vote) a $63 million sales tax bond to continue those improvements.
Following is the full statement from the city.
On August 18th the City of Fort Smith will authorize the issuance of approximately $29 million in sales tax revenue and water and sewer revenue bonds. The bond proceeds will be used to continue wet weather improvements to the sanitary sewer system.
The bonds are being underwritten by Stephens Inc. and Morgan Keegan. Individual investors interested in purchasing the bonds may do so beginning on Monday, August 17, 2009 at 9:00 a.m.
Investors may contact an underwriter’s broker or a broker in the selling group to place an order for City of Fort Smith Series 2009 sales and use tax bonds. Orders will be accepted by any of the brokers as long as bonds are still available.
Brokers selling the bonds are Stephens Inc., Morgan Keegan, Merrill Lynch and Edward Jones.
Bonds are available in increments of $5,000. Interest rates will vary depending on maturities. Interest earnings on the bonds will be exempt from federal and Arkansas income tax. A detailed offering statement is available for review at the City of Fort Smith, any participating broker, or on the Internet at www.fortsmithar.gov.
The bonds have a rating of “AA” from Standard & Poor’s. This is continuation of an upgraded rating assigned by Standard & Poor’s last year.
This order period provides Fort Smith and area investors with an opportunity to purchase City of Fort Smith bonds.