City Council Highlights: Bentonville Approves Doubling Water Rates

On Tuesday, March 11, the Bentonville City Council voted on over 30 items. Here are some of the highlights:

City Passes Water Rate Increase

Bentonville resident Debbie Frey speaks out against the city’s water rate increase at the City Council meeting March 11.

After postponing a vote on water rate increases at the Feb. 25 City Council meeting to hold an informational session for the public, Council approved an ordinance to double water rates for its utility customers effective April 14.

The vote passed 5-3. Council members Cindy Acree, Octavio Sanchez and Holly Hook voted against the increase. On Monday, Council decided to add a clause in the ordinance that requires them to re-examine the new rates after one year to determine if any changes are necessary.

Before the vote, Sanchez suggested amending the ordinance to be a 50% increase. Council member Bill Burckart said that if the 100% rate increase does not pass, it will limit the city’s ability to get financing in the future. Water rates must cover operating costs in order for the city to qualify for loans, and 50% would not be sufficient to cover those costs, Burckart said.

“You can’t just cut this without having a solution,” he said. 

Council member Gayatri Agnew said she recognizes the public’s frustration but that not passing the increase will cause financial havoc for the city. 

“The challenge with 2025 is not about the rate offsetting the $10 million in capital needed from a cash flow perspective. It’s about allowing the City of Bentonville to have access to key financing tools that we can only access if we cover the costs of our own utility operation for water,” Agnew said. 

Read more reporting from The Bentonville Bulletin on the rate increases here.

Ozark Regional Transit Contract Approved

The City of Bentonville will continue its partnership with Ozark Regional Transit (ORT) to provide bus service in Bentonville. The City will contribute $568,286 from its general fund. The total service cost for 2025 is $1,601,207, with Bentonville’s share representing 35% of the cost.

ORT will continue to offer fixed-route and on-demand transit services, including ADA para-transit services, within the city. ORT plans to provide quarterly reports to the City and present a marketing plan to increase ridership. 

Climate Pollution Reduction Grant

The City will accept a grant award of $2,080,350 for stream restoration, land preservation and trail construction along Town Branch Creek near Slaughter Pen. 

Building on the success of a 2023 project that repaired the stream along NW A Street, the grant will allow the City to continue the restoration downstream along the Razorback Greenway, according to a memo from Parks & Recreation. 

As this is a federal grant, there was some initial concern that the change in administration could potentially put the grant award at risk, but administrators have confirmed that the funding is secure and the project can proceed, the memo stated.

Construction is expected to start around fall 2026 or spring 2027 and is expected to be completed by Aug. 31, 2029. 

Rezoning Approved for New Townhomes and Cottages

Developer rendering of proposed townhome project.

A rezoning was approved that will pave the way forward for a townhome development on Central Avenue and SE H Street. The project will consist of 43 townhomes, formed by a mix of 10 standalone cottages and seven attached townhome clusters of varying size.

Open space will be provided with a communal green space, a dog run, pedestrian sidewalks and an outdoor courtyard. According to the developer’s proposal, the development will establish a “high-quality housing development that respects the elegance of traditional, single-family plots near Downtown.”

Grant for Road Improvements

The Council approved a resolution to confirm that the City of Bentonville is willing to use federal grant funds for road improvement projects. The grants will cover 80% of the cost for work, with the City responsible for the other 20%. 

The projects include the installation of a roundabout for the the intersection of Highway 12 (SW Regional Airport Boulevard) and Highway 279 (South Vaughn Road). This includes the addition of sidewalks and shared-use paths, according to Jarrod Brightwell, staff engineer with the City of Bentonville.

Other improvements are planned for Greenhouse Road. This project involves widening Greenhouse Road to four lanes with a divided median, Brightwell said. Sidewalks, a shared-use path and safe crossings will be included along the corridor.

Additionally, a traffic signal will be installed at the Southwest 28th Street and Quailridge Way intersection, and a roundabout will be installed at the intersection of Glen and Kimmel roads. The Southwest 14th and East Centerton Boulevard intersection will be improved with extra turn lanes. This project is in partnership with the City of Centerton.