The city of Highfill has authorized the sale of $12.33 million in water and sewer revenue bonds to finance water-line extensions and pump station work, according to the ordinance approving the transaction.
sale terms and timeline
The bonds carry maturities through June 1, 2058 and bear interest between 5.5% and 5.75%. Under the ordinance adopted Oct. 13, an emergency clause lets Mayor Chris Holland sign the bond purchase agreement immediately. The sale is expected to close on Nov. 19.
- The ordinance allows excess bond proceeds to be used to retire existing debt early if construction costs are lower than projected.
- Highfill may call and prepay bonds without penalty beginning June 1, 2033.
relationship to existing debt and covenants
The city previously issued bonds in 2024 for sewer system extensions and passed sales-tax-backed bonds in 2018 and 2021. The City Council on Sept. 29 approved detaching the 2018 and 2021 bonds from the utility’s rate covenants so those older obligations can be paid from sales and use tax revenues.
Highfill maintains a rate covenant that requires utility rates to produce net revenues equal to at least 110% of maximum annual debt service on outstanding system bonds. Officials said the exclusion for the 2018 and 2021 bonds was granted because the city expects to continue using sales and use tax receipts to retire those obligations by Dec. 31, 2030, consistent with a Sept. 2025 detachment order tied to the Northwest Arkansas National Airport property.
state agencies and local growth
Both the Arkansas Development Finance Authority and the Arkansas Natural Resources Commission agreed to the detachment, the ordinance noted. A 2025 report from the Arkansas Economic Development Institute ranked Highfill among the state’s fastest-growing cities, estimating a 15.2% population increase from 2023 to 2024 — from 2,424 residents to 2,793.
“That number will continue to grow and the city is looking at water projects it can do to address that growth,” said Dustin Kahrl, Highfill public works director, referring to the roughly 2,200 water customers the city was serving earlier this year.
The ordinance authorizing the bond sale names Carty, Harding & Hearn Inc. as the underwriter for the transaction. It preserves flexibility for the city to apply any surplus bond proceeds to early debt retirement if construction bids come in below estimates.
| Item | Detail |
|---|---|
| Amount | $12.33 million |
| Maturities | Through June 1, 2058 |
| Interest rate | 5.5%–5.75% |
| Expected closing | Nov. 19, 2026 |
| Call option | Callable without penalty beginning June 1, 2033 |
City officials previously used bond financing for wastewater improvements and have blended sales-tax-backed borrowing into their overall debt strategy. The latest ordinance includes provisions governing the use of proceeds and the city’s rate covenant for system bonds.
No vote totals or council roll-call were included in the published ordinance summary. The transaction follows a series of local financing actions intended to expand utility capacity as Highfill’s population and customer base increase.
