Bentonville council OKs 2024 budget

City anticipates an 18.2% increase in revenue next year

BENTONVILLE — The City Council voted unanimously to adopt the 2024 budget at its meeting Tuesday night.

City departments have demonstrated a commitment to a thoughtful planning and budgeting process to arrive at the 2024 budget, Mayor Stephanie Orman said.

“Cities growing at a high rate, like Bentonville, face a delicate balancing act when it comes to budgeting,” Orman said. “The budget must address the needs of a growing population while maintaining fiscal responsibility.”

The city expects $79 million in revenue in 2024, up 18.2% from what was budgeted for this year. The city expects to spend about $68 million — including $35.4 million in salaries and wages — on operations and maintenance, an increase of 11.7% from what was budgeted for 2023, according to the city.

Capital expenditures in the general fund total $11.2 million. Overall, the general fund budget shows a projected net increase of $1.98 million, according to the city.

The 2024 budget prioritizes responsible growth by providing for personnel needs, enhanced safety measures and continued infrastructure investment, Orman said.

“This budget represents a testament to our dedication in fostering a thriving community, ensuring that every dollar serves the needs of our citizens while paving the way for a safer, more connected and prosperous Bentonville,” Orman said. “The continued growth in population and commitment to provide quality public services and infrastructure is supported by the strength of our economic tax base, a clear indicator of the vitality and promise within our city’s future and the investment to the quality of life we work for in Bentonville.”

The general fund covers administration, accounting, district court, planning, engineering, the municipal airport, police and fire departments, public works maintenance, parks and recreation, public library and animal services, according to budget documents.

The Police Department budget is $19.2 million, up 20.8% over this year. This includes a pay plan of $1.43 million in wages and $399,703 in benefits for a total $1.82 million that was passed in 2023 to make Bentonville more competitive with other area departments in terms of salary, according to the city.

The Fire Department budget is $18 million, up 11.9% over this year. The Fire Department and the Building Inspection Department are combined in the 2024 budget, according to the city.

Fire Department pay increases to help make pay rates competitive with those in other area cities include $411,123 in wages and $112,821 in benefits for a total $523,944, according to the city.

The pay plan will move the starting wage for a firefighter from $13 to $15.08 per hour, according to council documents.

The Parks and Recreation Department budget is $12 million, up 15% over this year. The department plans to add four new employees and upgrade two administrative positions, Director David Wright said.

The Street Department budget is $4.2 million, a 5.8% increase over this year. The majority of the increase will be to add six new employees for the overlay crew, according to the city.

The budget shows a total of 21 new positions in 2024 along with upgrades in human resources, planning and courts.

There also is a 3% merit increase for employees.

“It’s imperative to acknowledge the extensive dedication and effort invested in the formulation of this financial plan,” said Patrick Johndrow, finance director. “Over several months, the finance team, in conjunction with our city departments, engaged in an exhaustive planning process that began in March and persisted throughout the year. Budget meetings and forecasting sessions served as the bedrock for the proposed budget. The collaborative effort among our staff members has been instrumental in preparing a budget that seamlessly encapsulates the values and aspirations we hold for our city.”

Councilman Chris Sooter said the budget process for 2024 was one of the best in which he has been involved.

“It very thoughtfully accommodates the many needs of all our city departments, including our professional city staff,” he said. “The budget includes conservative projections on our sales tax revenue, providing for some upside next year if the growth acceleration in sales tax continues.”

In other action, the City Council also approved a $257,795 donation from Steuart and Kelly Walton for improvements to Gilmore Park. The council also approved a land donation from 8th and Melissa LLC that will become part of the park at 503 S.W. D St.