Bella Vista Uses Sales Tax Revenue to Finance Fire, Police and Street Improvements
At a special meeting on February 3, the Bella Vista City Council approved an ordinance authorizing the issuance of new Sales and Use Tax Bonds, structured as Series 2026A and Series 2026B.
The bond package serves two purposes: refinancing existing debt and funding new public infrastructure projects.
Refinancing Prior Obligations
The Series 2026A bonds will be used to refund the City’s outstanding 2020 Bonds and 2024 Capital Improvement Bond. In practical terms, this functions as a restructuring of existing debt — often done to improve interest terms or consolidate obligations.
Rather than creating entirely new financial burdens, this portion of the package optimizes previously issued bonds.
Funding 2026 Improvements
The Series 2026B bonds will finance a series of public projects, including:
Fire and City Administration Complex improvements
Additional Fire improvements
Street improvements
Police improvements
The ordinance notes these improvements are “immediately needed for the preservation of the public peace, health and safety” and includes an emergency clause making the measure effective upon passage 020326 City Council Special Mee….
Backed by the 1% Sales Tax
Both bond series are secured by collections from Bella Vista’s 1% sales and use tax. This means the City is leveraging its ongoing sales tax revenue — rather than property taxes — to fund capital projects and refinance debt.
For residents, that structure matters. Sales tax-backed bonds tie infrastructure capacity to commercial activity and consumer spending, rather than shifting the burden directly to assessed home values.
A Signal of Growth and Institutional Maturity
While bond ordinances rarely generate headline attention, this action reflects a broader phase in Bella Vista’s evolution. As population increases and service demands rise, cities often transition from expansion-focused spending to strengthening institutional capacity — particularly in public safety and transportation systems.
Fire, police, and street infrastructure form the operational backbone of a growing city. By restructuring prior debt while financing additional improvements, Bella Vista is positioning itself to support long-term service demand.
