Fort Smith Board of Directors Study Session - September 9, 2025

The Fort Smith Board of Directors held a study session on September 9, 2025, at the Blue Lion, beginning at 6:00 PM. The agenda included three major discussion items: a proposal from the River Valley Film Society (RVFS)/Border Town Live to create a separate city-funded entertainment fund; a proposed second amendment to the management agreement with Oak View Group (OVG) for the Fort Smith Convention Center; and a review of preliminary 2026 budget comparison summaries. The meeting also included a citizens forum.

Public Comments & Testimony

• Kim Fodge praised the professionalism of the Neighborhood Services department, especially staff member Karen.
• Noah Hansen, a researcher, spoke about homelessness, urging the board to pursue local, collaborative, and persistent solutions. He argued that providing services does not increase homelessness and that many homeless individuals are not traveling from far away.
• Patrick Morris, a former Hope Campus client, shared a personal success story of overcoming addiction and homelessness with the help of Hope Campus, emphasizing the positive impact of the facility.
• Dan Williams asked about a rumor that the city would cover a $400,000 grant obligation for the school board; Acting City Administrator Jeff Dingman clarified that the city is not paying that amount.
• Chris Cadelli expressed concern about new water infrastructure needs (estimated half billion dollars) on top of consent decree obligations, and questioned why $4.2 million in water slide parts sit unused while police patrol cars are in poor condition.
• Bill Kincanon, representing the Cisterna Villa subdivision, reported a sinkhole in an alleyway caused by sanitation truck weight. He said no resolution had been provided after 25 days. Staff explained that the plat acknowledges the city is not responsible for such damage; the matter is considered a private access easement. The board suggested exploring a cost-share or relocating trash pickup.
• Molly Echeveria noted a homeless encampment near Grand Avenue and asked for consistency in enforcing cleanliness ordinances. She also flagged that Oklahoma's ban on encampments may push homeless individuals toward Fort Smith.
• Casey Wilson, Executive Director of Hope Campus, highlighted the facility's role in mental health and addiction recovery, invited the public to monthly open houses, and advocated for community partnerships.
• Crystal Cadelli urged the board to stop funding non-essential private developments and to focus on logical, not emotional, spending. She expressed concern about a potential sports complex given the convention center's subsidy.
• Richard Morris praised city staff but noted the city website is not user-friendly, causing unnecessary calls to staff. He cautioned against overloading capable employees.
• Joe Elskin advocated for including department heads and boots-on-the-ground employees in budget and personnel decisions to find local, collaborative solutions.

Discussion Items

1. Proposal from River Valley Film Society/Border Town Live for an Entertainment Fund

Brandon Goldsmith (RVFS) presented a proposal to establish a separate city-funded entertainment fund for shows at the Fort Smith Convention Center/ArcBest Performing Arts Center. He requested:

• A separate budget line item (currently $250,000 was allocated under convention center supplemental).
• An agreement between the city and RVFS where funds remain with the city, and RVFS invoices for expenses, with show profits returned to the fund.
• A transparent booking committee (OVG, city, RVFS) and a non-profit rental rate ($3,000 per event) akin to the symphony contract.
• RVFS would run its own box office to avoid high fees (citing Ticketmaster's refusal to waive $736 in fees for free tickets).

Goldsmith emphasized a three-year sustainability plan: $75,000 in non-city revenue in Year 1, $125,000 in Year 2, and $200,000+ in Year 3, through sponsorships, grants, and subscriptions. He cited a prior $15,000 sponsorship for Sesame Street Live that funded 200 free tickets and marketing.

Board responses:

• Director Christina Catsavis asked about ticketing alternatives and grants. Abby Cox (via Zoom) confirmed corporate sponsors and arts education grants are available.
• Director Neal Martin questioned overlap with OVG's role; Goldsmith distinguished Border Town Live's community and nonprofit focus. Martin expressed concerns about the OVG contract and noted that entertainment activity should be transparent.
• Director Andre Good praised the Aretha Franklin show and argued two entities can bring diverse programming.
• Director Lee Kemp emphasized affordability and asked about the possibility of Border Town Live taking over convention center management (Goldsmith said no). Kemp noted the difficulty of recouping reimbursements.
• Director Kevin Settle noted that the $250,000 fund had approximately $85,000 spent, and that the proposal will be considered during budget talks.

2. Proposed Second Amendment to the OVG Management Agreement

Shannon Davis (OVG) presented a draft amendment with four components:

• Term adjustment: From a 5-year initial term with five 1-year renewals to an 8-year term with one 2-year renewal (total 10 years).
• Off-site catering: Expanding from events tied to convention center activities to any off-site event, currently capable of generating $100,000 in sales per year (60-65% profit margin).
• Event Marketing Account: A dedicated fund to attract shows, separate from operating expenses, at city discretion.
• Parking advisory: OVG would provide a study of parking monetization options at no extra cost.

Davis reported that 2025 net operating loss is projected at $759,226, improved from the previous $928,395 budget, and that three naming-rights proposals totaling $3-4 million are in advanced discussions.

Board responses:

• Director Christina Catsavis supported the catering expansion, noting the lack of large-scale caterers in Fort Smith. Director Neal Martin opposed off-site catering, arguing it gives an unfair advantage to a city-backed entity over private businesses. Director Lee Kemp suggested a phased approach or minimum-quantity threshold for off-site catering.
• Director George Catsavis asked about parking charges ($10 per car for ticketed events) and pouring rights (Pepsi, alcohol).
• Director Neal Martin requested that the four components be votable separately.
• The board generally agreed to continue refining the amendment, with the possibility of decoupling the catering and marketing account provisions for separate votes.

3. Review of Preliminary 2026 Budget Comparison Summaries

Acting City Administrator Jeff Dingman and CFO Andrew Richards presented the initial draft of the 2026 budget, which includes all departmental requests and new capital outlays. Key figures (General Fund):

• FY2025 projected ending fund balance: $15.7 million (contingency reserve ~20.8%).
• FY2026 budget expenditures: $64.85 million, with revenues of $53.18 million, resulting in a projected deficit of approximately $11.67 million. Excluding $3.7 million in new capital requests, the operating deficit narrows to roughly $5.2 million.
• Revenue assumptions: sales tax growth at 1% (conservative), property tax up 10% due to reassessments. Water and sewer revenue growth is offset by reduced volume.
• The FY2026 contingency reserve is projected at 6.3%, well below the 20% policy target.

Board responses:

• Director Neal Martin stressed the need to balance the general fund and maintain the 20% reserve; he noted the current path is unsustainable.
• Director Lee Kemp advocated for a zero-based or priority-based budget review, questioning staff growth since 2015 and suggesting attrition or repositioning rather than layoffs.
• Director Christina Catsavis suggested eliminating budget lines for positions that have been vacant for over a year (e.g., utilities with ~40 open positions) to reduce expenditures.
• Director Andre Good asked about past balanced budgets; staff indicated it had been about 5-6 years since the general fund was balanced.
• Director Kevin Settle urged focusing budget discussions on the three largest departments (police, fire, operations) first.
• Director George Catsavis agreed to start with public safety departments at the next budget meeting.

Ultimately, the board directed staff to prepare detailed information on the top three general fund departments for the Thursday, September 11 special study session at 5:30 PM, and to provide data on vacant positions.

Key Outcomes

• No formal votes were taken, as this was a study session.
• The Border Town Live proposal will be considered during the broader budget process; the board expressed interest in transparency and affordability.
• The OVG amendment will be further refined; the board will likely consider separate votes on each of the four components.
• The 2026 budget process will proceed with a series of departmental reviews, starting with police and fire on September 11. Staff will provide vacancy data and capital requests for those departments.
• The citizens' forum covered a range of concerns; staff will follow up on the Cisterna Villa alleyway issue and the encampment near Grand Avenue.