Bentonville, Arkansas, a city known for hosting the global headquarters of Walmart Inc, sold $53.9 million in bonds to finance capital improvements and refund previously issued securities.
The bonds mature between 2024 and 2046, yielding between 3.4% and 4.17%. The securities received a rating of AA- from S&P Global Ratings.
“Bonds are a great way for financially strong cities such as Bentonville to get the money needed for important improvements by using existing tax revenue instead of increasing taxes,” Bentonville’s bond overview website reads.
The bond proceeds will finance improvements to road and water infrastructure, parks, public libraries, police facilities, and public safety. They will also refund bonds the city issued in 2009, 2010, and 2017.
Bentonville voters approved $266 million in bonds in a 2021 referendum, which passed with three-quarters of voters in favor. This week’s issuance marked the second under that authorization. The city previously issued $84 million in bonds in 2021. It now has about $128 million in bond authorization remaining.
Bentonville is a city of 57,000 in northwest Arkansas. The bonds are special obligations of Bentonville, payable by a 1% sales and use tax levied by the city. The tax is due to expire in 2046, the same year that the longest-term bonds mature.
Crews & Associates, Inc and Raymond James & Associates, Inc served as underwriters on the issuance.