Per Arkansas State Statute 14-43-502 (bX1):
The council shall have the management and control of the finances, and all the real and personal property belonging to the corporation.
With this responsibility I(we) should feel obligated first to sufficiently fund our local city government in the basic interest of the Health, Public Safety, and Public Comfort of our residents.
Bella Vista Financial Overview:
Bella Vista generates sufficient revenue to fund the current day to day operational expenses of the city, i.e.: the departments of police, fire (includes emergency), streets, finance, legal, library and administrative. The costs associated with funding these departments are - salary, benefits and operational (turn the lights on).
Historically, capital projects/capital equipment was funded by the leftover balance of our revenue minus day to day expenses. Those leftover funds are designated as unassigned funds. It was the unassigned funds that determined the next years capital budget. During 2020 covid happened and the city received $5.5MM in Covid Relief Funds and the Arkansas State Legislature approved the implementation of the internet sales tax. Bella Vista suddenly found itself flush with cash. Now it was time to play catch-up on needed infrastructure and equipment.
During a budget meeting, I believe three years ago, it caught my eye that police and fire salaries had increased by $1.8MM over a two-year period. It raised a red flag with me. I decided to do my own forward looking financial trend analysis through 2027. I presented my work to council during either a September 2024 work session. Below is the topline spreadsheet I completed on August 29, 2024 and presented to council. The updated spreadsheet I completed September 3, 2026 is below the 2024 spreasheet. I pointed out the bottom line on the 2024 spreadsheet of where I thought we were going and I pointed out the bottom line of the 2026 spreadsheet of where we are. I proved to be correct.
During 2024 the city sourced a revenue bond for $5.4MM to cover additional costs associated with the Fire Station #1 rebuild. Additionally, the recent bond voted on by the residents included the purchase of police cars to cover the next two years ($1.2MM), two ambulance remounts ($600K) and road resurfacing ($4.8MM). A total price tag of $6.6MM.
The total of the above paragraph is $11MM. The police, fire and road surfacing has been historically been paid by unassigned funds. The $5.4MM was originally scheduled to be covered by unassigned funds as well. The net is, the money was not available to cover these costs by utilizing unassigned funds. We are actually further behind than I projected and we are now paying through a bond for some capital items that may not be paid off before the life expectancy expires.
We have to do better!
My City Financial Estimates Completed Aug. 29, '24
Focus on the the projected number of (-$6.6MM) ending 2027
~These numbers never would have been perfect, but directional. The story was there.~
Updated Financial Estimates Completed Sept. 3, '26
Updating the Aug. 29, '24 Estimates
Focus on the Capital Expense requests for 2026 of $1,911M and Unassigned Revenue $1,376M. Unassigned Revenue how Capital Expenses are paid.
~This reflects an estimated (-$600K) deficit~
