Bentonville’s 2026 Budget Focuses on Core Services and Steady Growth
Bentonville is projecting another year of strong fiscal stability as officials unveiled the 2026 proposed city budget, anchored by more than $118 million across all governmental funds and driven by steady sales tax revenue and growing city services.
General Fund: Salaries and Public Safety Dominate Spending
The General Fund, which supports day-to-day operations, accounts for roughly $89.2 million in total revenues for 2026. Nearly three-quarters of those revenues—around $70 million—come from city and county sales taxes, property taxes, and state turnback funds.
On the expense side, the General Fund reflects Bentonville’s continued emphasis on public safety and personnel.
Salaries and wages make up the largest share at 44% ($38.9 million).
Employee benefits total $16.4 million (19%).
Capital expenses—such as vehicles, equipment, and facility upgrades—are budgeted at $14.1 million, about 16% of total General Fund spending.
Technology, supplies, and maintenance collectively represent another 12% of expenditures.
Departmental Breakdown
Among departmental allocations, police and fire services remain the city’s largest operational investments:
Police: $21.1 million in operations and maintenance, with total expenses of $22.1 million.
Fire: $19.9 million in operations and $2.3 million in capital, totaling $22.3 million.
Parks and Recreation: $14.8 million in operations and $5.5 million in capital projects, totaling $20.4 million.
Other core departments like Engineering, Public Works, and Library Services also receive funding increases tied to maintenance and infrastructure needs.
Revenue Composition: Sales Tax Leads the Way
Sales taxes continue to anchor Bentonville’s financial health, representing 48% of all General Fund revenues.
The city receives:
1% General Sales Tax — about $25 million projected.
1% County Sales Tax — approximately $17.5 million.
20% of 1% Capital Improvement Tax — about $5 million dedicated to infrastructure.
Other major sources include property taxes ($11.4 million), charges for services ($9.8 million), and franchise fees ($8.4 million).
Charges for Services: Parks and EMS Lead Revenue Generation
Bentonville expects $9.7 million from service-based revenue streams in 2026.
Top contributors include:
Recreational programs: $6.08 million
Ambulance charges: $1.6 million
Billed services: $1.23 million
Police reimbursements (BHS): $508,620
Sales Tax Trends: Recovery After a Dip
Sales tax growth has remained relatively strong over the past decade. While 2024 saw a 10% dip after record highs in 2023, projections show a rebound toward $56.4 million by the end of 2025 and 2026.
Over the last ten years, Bentonville’s average year-over-year sales tax increase sits around 7.8%, reflecting steady consumer activity despite cyclical fluctuations.
Debt Service and Capital Funds
The Debt Service Fund (DSF), which handles repayment on bonds and major capital projects, will receive $20.1 million in 2026—funded primarily by the 80% of the city’s Capital Penny sales tax.
Infrastructure-related funds such as Water, Sewer, and Impact Fees collectively add another $2.9 million in total revenue toward long-term growth projects.
Looking Ahead
City finance officials emphasized that Bentonville’s 2026 budget maintains a balance between growth-driven investments and sustainable operations. While personnel and capital costs continue to rise alongside the city’s rapid development, consistent sales tax performance and service revenues are expected to keep the city in strong financial shape going into the latter half of the decade.
