Lincoln council considers interest savings

LINCOLN -- The City Council started the process in April to refinance water and sewer bond issues to save money through interest costs.

The council on April 20 approved a resolution to refinance two water and sewer bond issues, one from 2007 and another from 2016, and replace those with a new 2021 water and sewer revenue bond issue.

The resolution authorized city officials to work with Stephens Inc., investment firm and Friday, Eldredge and Clark law firm as underwriter and bond counsel for the transaction.

Kevin Faught with Stephens Inc., last week said the city would refinance a 2016 water and sewer revenue bond issue with a balance of $4.8 million and a 2007 loan from Arkansas Natural Resources Commission with a balance of just under $400,000.

"We're not talking about doing anything but a straight refunding," Faught said, comparing the transaction to someone refinancing their home mortgage at a lower interest rate.

Looking at current rates, Faught said the city may be able to issue new bonds in the range of a 2.27% interest rate on the debt with an estimated savings of $480,000 in interest costs.

The schedule calls to sell the bonds on July 6, and the City Council would authorize the sale at a meeting that night.

Faught said the city is not obligated to move forward with the project if interest rates are not acceptable from the sale.

In other business, the council spent time discussing whether to allow residents to keep more than two chickens in their backyard.

Council member Michelle Davis brought up a recommendation to increase the minimum to what Fayetteville allows, four chickens with 4 square feet of land per bird. She noted that someone who wants eggs would not be able to have many eggs with only two hens.

Mayor Doug Hutchens disagreed with increasing the minimum, saying he helped sponsor the ordinance that allows two chickens per home.

"It used to be none, period," Hutchens said.

The city's animal control officer already has cat and dog issues to deal with and doesn't have time to add chickens to that, Hutchens said.

"If you want a farm, you need to be in an A1 area," Hutchens said. For those in town, having chickens is a hobby, he added.

Council member Johnny Stowers said people move to the city for the amenities of the city.

Davis responded to him, saying, "Lincoln is a rural town. We're a farm town. We have farms all around us. For the people who want to have laying hens in town, I don't know why they can't have them."

City Attorney Steve Zega said the council would have to pass an ordinance to amend the code to allow more chickens.

Davis made a motion to have Zega write up an ordinance to increase the minimum allowed, but the motion failed, 3-4. Davis, Amanda Thomas and Billy Rusher voted for the motion. Stowers, Terry Bryson, David McBride and Doug Moore voted against the motion.

Chapter 6 of the city code says it is unlawful to keep livestock within the city except for areas zoned agricultural or industrial uses, when no more than two rabbits, chickens, ducks or geese are kept as pets, or when animals are kept for educational purposes.

In other action, the council approved an ordinance to amend the Lincoln Unified Development Code for requirements for accessory buildings. Accessory buildings are not allowed in the front yard in residential and commercial zoning districts.

The amendment requires a building permit for the placement of an accessory building, except for storage sheds that are not on a permanent foundation or for human habitation or for portable or temporary carports not on a permanent foundation.

The city received $27,448 for its February distribution of the 1% local sales tax. Of this about $8,200 went to the library and about $2,058 to parks and recreation.