Video of the meeting can be seen below this story. 

After the call to order, invocation, pledge of allegiance and review of minutes (approved), the board recessed its regular session to host a public meeting regarding the Tyson Chicken Inc. industrial development revenue bonds, which would raise $75 million.  During this period, Taylor Marshall, an attorney with Friday, Eldredge and Clark of Little Rock, representing Tyson fielded questions through an online connection that was projected on screen. 

Marshall explained that the public hearing and its advertisement was required by law when bonds were being issued. These bonds would contribute $75 million to the construction of the 131,000 square foot hatchery, which replaces the existing one. Marshall said it is not known yet when the new hatchery would be finished. 

Asked to define what an industrial development revenue bond is, Marshall said these bonds, often called Act 9 bonds, are allowed under Arkansas law under “a particular law that allows cities to issue revenue bonds to benefit a particular industry? Okay, so Tyson, this project would be considered industry under state law. And so a long time ago we used to do these issues for primarily financing purposes. The bonds are actually bought by a bank.” In this case, the bank, known as the Trustee, is Regions Bank of St. Louis. 

Marshall said that Hope would hold the title to the hatchery while Tyson will pay 50 percent of the yearly ad valorem amount “in lieu of taxes” that it would normally pay over the next ten years. Other than bearing the reduction in taxes, the city would in turn pay no costs and be under no obligation if the project or its profitability failed or if Tyson walks away. The city would also not face a federal income tax burden from holding title to the project. Tyson would pay that. 

County Treasurer Judy Flowers asked about the role of the county in the bond issue, whether the county would be provided with a payment schedule. Marshall responded that the county assessor, who is Renee Gilbert, would work out with Tyson what the assessed value would be and a payment amount would be determined “in lieu of taxes.” 

Following up on this, City Manager J.R. Wilson asked what determined whether the city or the county was chosen to issue the bonds. Marshall said the location was typically what determined this, which in the case of the hatchery, which is located in Hope’s city limits, would be the city.  Wilson replied that 50 percent of the ad valorem taxes was customary in past bond issues by the city as the in lieu of taxes payment. 

At this point, Wilson asked Mayor Still to call the board back into session. This was done.  Marshall further described the bond issue, including the fact that Tyson will be making the payments for the bond to itself.  

Wilson asked Marshall whether the board needed to vote on two matters, the acceptance of the ordinance and the adoption of the contract. Marshall said the acceptance of the ordinance was also an adoption of the contract.  With this City Attorney Randal Wright read the three-page ordinance, which can be seen prior to the video link below. 

For the next agenda item, pertaining to the Hope For the Future Project initiative, an effort by the city to embark on a large capital project to improve quality of life in the city which would be at least partially financed by a sales tax increase that would need voter approval, Jason Holsclaw, Senior Vice President of Public Finance from Stephens Inc. joined Marshall for the discussion. They both presented options for the particular sales taxes that could be levied, with advice on how it would appear on the November ballot.  

The board was advised that time would be short to make a decision and was given a set of deadlines to adhere to.  Both Holsclaw and Marshall suggested the board come to its decisions on what the tax would be used for, and the form it would take in the form of ordinances by July in order to be able to apprise Friday, Eldridge and Clark and Stephens of what they would be.  The submission of the ballot measure to the state would need to take place by August 6th. 

Wilson reminded the assembled that the city is still asking for citizen input on what the capital project might be and how funds might be raised for it. He referred to a survey available to fill out on the city’s website. More public meetings in addition to the one two weeks ago Tuesday, January 2nd, will be held as well, Wilson said. 

“If you have any place you'd like for us to go,” Wilson added. “To any civic group or any church group or any anybody you think can be helpful, please let us know. We'd love to go and speak to our citizens and find out what their thoughts are about this project. We want the board to be fully informed as they try to make these decisions. We don't want to overstep. We want to reach a good compromise and see what the citizens would like to do.” 

Next, President of McClelland Consulting Engineers, Dan Beranek, presented some sample designs of both a soccer complex and an acquatic park for the board’s inspection. These were shown on the screen. McClelland, with offices in Fayetteville, Fort Smith and now Rogers, has provided engineering services for 60 years, Beranek said, in a number of areas, including parks and recreation, water and wastewater, aviation, roads and others. Wilson asked Beranek to send a contract for services to the city for consideration. 

The raise in wastewater rates was passed by unanimous voice vote. At first, a 32 percent raise had been contemplated, but Wilson spotted revenues not being taken into account and, after consulting with the city’s rate-setting consultants, found that a 25 percent raise would be sufficient. Under the requirement for receiving a $3.48 million loan at a 1.75 percent interest rate from the Arkansas Natural Resources Division for projects to upgrade the city’s wastewater treatment system, the city has to raise rates paid by those using it. 

Under the increase, the average current charge is $21.50 monthly. Wilson explained that the increase would render that amount $26.88. The minimal user, of less than 1,000 gallons per month, would pay $16.75. The tax would increase the cost per additional 1,000 gallons to $3.50. An ordinance amending a past ordinance setting rates was passed unanimously to effect the rate increase. 

As the ordinance reads, metered users “shall be charged $3.50 per month for each 1,000 gallons of metered water consumption in such month for operation and maintenance including replacement;” “all users of the municipally owned wastewater treatment system shall be charged $13.25 as a base rate for debt service on the system;” and “the minimum monthly bill per user will be $16.75 which includes OM&R (Operations, Maintenance and Replacement) charges for 1,000 gal. of metered water at $3.50 plus Debt Service charge of $13.25. All metered users shall pay the minimum user charge if they have an active water account for that meter.” 

Asked by Director Trevor Coffee when the new rates would go into effect, Wilson said that Hope Water and Light’s need to inform its vendors will likely make it a matter of weeks before customers see the increases on their bills. 

The next item saw the board accept bids from Tri State Asphalt Inc., for Hot Mix Asphalt Paving at $119.80 per ton over its nearest competitor Smackover Paving, which bid $193.95 per ton. Roads Superintendent Kenneth Harvel recommended acceptance of Tri State’s bid on the basis of its lower price.  For street milling, the only bid was Johnsville Company, LLC, at $5.15 per yard. The board accepted this at Harvel and Wilson’s recommendation. That only one bid was received, Wilson said, was because few companies wanted to deal in smaller projects. 

Fire Department Chief Todd Martin next took the podium, recommending that eight respirators, nine facemasks and 16 cylinders be deemed surplus and sold. Martin said newer replacements had made them redundant and that other town fire departments in the county may be interested in them. The board voted to declare them surplus. 

The board next voted to confirm the Tourism Commission’s appointment of Charlton Luker, for an additional four-year term on the commission. As manager of the Holiday Inn Express location in Hope, Luker is an industry member. His previous term expired at the end of 2023. His new one expires December 31, 2027. 

Martin returned to the podium to recommend that bids be waived for the purchase of a ladder truck because of the great competition with other municipalities to buy them and their scarce availability. Mayor Don Still pointed out that the waive bids ordinance provided for the purchase of the truck at $150,000 as allotted in the 2024 budget.  Wilson asked the board if he could still purchase the truck if it turned out to be up to ten percent more than the budged amount and the board indicated he could. The ordinance was passed unanimously. Afterward Director Coffee asked what the minimum height would be for the ladder on the truck. Wilson said that a ladder with a height of 75 feet would reach Hope’s tallest building. 

In his City Manager’s Report, Wilson said he and city engineers had been to the Arkansas Department Environmental Quality Offices in North Little Rock to meet with officials there concerning a plan for the remediation of wastewater from the city’s landfill. The possibility of using fly ash, a waste product from coal plants, which, when mixed with soil, can be an adequate cover, was mentioned in these talks as a way to reduce the cost of the remediation project. Wilson also reported his attendance of the Arkansas Municipal League Conference in Little Rock along with Directors Linda Clark, Mark Ross and Reginald Easter. 

Wilson also alerted the board that three directors’ terms will be expiring at the end of the year, those of Kiffinea Talley, Trevor Coffee and Linda Clark.  They can begin petition drives May 9th and need to file these with the city clerk by August 7 at noon. 

Wilson said two city employees had had spills on the ice Tuesday, a street department member and a police officer, but both would recover and that it highlighted the sacrifices city workers make. He also said trash pickup had been resumed as of Tuesday. 

In Citizens Request, Mitzi Coker asked the board who was working on increasing the availability of housing in Hope. Mayor Still replied that there was not just a shortage of builders, but of plumbers and others involved in the construction of housing as well.  Wilson explained that those wanting new housing in the city had three options, to contract with a builder privately, to apply to the Hope Housing Authority, which he recalled had a 75 percent occupancy rate a year ago or to wait for developers to build housing which could be purchased.  He said he had reviewed policies in Nash, Texas, where the city had received federal and state funding to finance housing development and to refurbish older homes, but that Arkansas had no comparable program. 

Coker asked if the city had approached builders. Wilson said some developers built houses on spec, but that Hope had not attracted that kind of investment yet.  “I’ll keep looking at this, for government funds. We haven’t been successful with that in the past, but we’ll certainly keep trying.” 

Mayor Still spoke about Governor Sarah Huckabee Sanders’ recent visit. “I was so proud of the city of Hope. We visited ROC (Rainbow of Challenges), Hope Public Schools, Hope Baking Company and Hope Livestock Auction. Great presentations. It really put a good spin on Hope.” 

Then the meeting adjourned at about 9:00 p.m