Fort Smith Board of Directors Special Meeting & Study Session - September 23, 2025

The Fort Smith Board of Directors convened on September 23, 2025, for a special meeting followed by a study session. The special meeting authorized the issuance of $94,340,000 in Sales and Use Tax Bonds for consent decree and wastewater capital improvements, as approved by voters on May 13, 2025. The study session covered a loaned personnel agreement for engineering services, a long-term solid waste management strategic plan, and a proposal to assume ownership of four cemeteries. The board also tabled discussion of the 2026 Strategic Priorities due to the absence of two directors and the mayor.

Public Comments & Testimony

• No public comments were made during the special meeting.
• Marty Clark, President of Fort Smith Cemeteries, Inc., presented a revised proposal for the city to take ownership of Roselawn/Holy Cross, Forest Park, and Washington Cemeteries. He emphasized that the original budget was overinflated and that outsourcing maintenance could cut annual personnel costs in half and reduce capital expenditures by 80%. He argued that the city has a moral and civic obligation to preserve these cemeteries.
• Bobby Woodard Andrews, operator of Washington Cemetery, stated that Washington Cemetery is financially sound and currently in the black. She expressed opposition to city takeover and only requested occasional grass-cutting assistance from the city. She noted the cemetery has community volunteers and private support.

Discussion Items

• Special Meeting – Sales and Use Tax Bond Ordinance: Bond counsel and PFM financial advisor reported that the $94,340,000 bond series (the initial portion of the $385 million approved by voters) was sold with a true interest cost of 4.6%, generating $6.25 million in annual debt service—$200,000 per year less than originally estimated. The underwriters received over $450 million in orders from 41 investors. The board unanimously approved the ordinance (5-0) and the emergency clause.
• Loaned Personnel Agreement with Burns & McDonnell: Acting City Administrator Jeff Dingman presented a six-month, not-to-exceed $317,493 contract for Ben Marts to serve as Interim Director of Engineering. The Engineering Department lacks professional supervision for streets, bridges, and drainage CIP projects following the director’s retirement. Board members expressed concern about the cost but acknowledged the need. The item was tabled at the previous meeting and was moved forward to the October 14 regular meeting for a vote.
• Cemeteries Oversight Discussion: Staff presented two budget scenarios: the city’s original proposal (with in-house staff and equipment) showing a $719,153 annual expense, and a revised proposal from Fort Smith Cemeteries, Inc. (outsourced maintenance) showing $404,021 annual expense. The city would need to own the properties. Board members debated the precedent, ongoing costs (~$184,000 annual deficit), and general fund impact. Marty Clark noted that alternative fundraising could reduce the deficit. No action was taken; the item was tabled for further discussion with absent directors.
• Long-Term Solid Waste Management Strategic Plan: Joe Sloan of SVM presented findings: the Fort Smith landfill has over 100 years of capacity, receives ~298,000 tons annually (75% from outside the city), and current residential rate of $15.89/month is below cost. The actual cost of current service is $23.49/month, while the regional average is $24.03. Options discussed included rate adjustments, service changes (e.g., bi-weekly recycling), billing audits, and a materials recovery facility. Board members expressed reluctance to raise rates and requested further analysis of cost-cutting and efficiency measures. No action was taken.
• 2026 Strategic Priorities: The item, tabled from the September 2 meeting, was again tabled to a future study session because Directors Rego and Good and the mayor were absent.
• Preliminary Agenda for October 14 Regular Meeting: Briefly reviewed; no action taken.

Key Outcomes

• Ordinance No. 25-XX authorizing the issuance of $94,340,000 in Sales and Use Tax Bonds for consent decree sewer improvements was adopted unanimously (5-0), including the emergency clause.
• The loaned personnel agreement with Burns & McDonnell was scheduled for a vote at the October 14, 2025 regular meeting.
• Discussion on assuming ownership of cemeteries was tabled pending input from absent board members and further budget analysis.
• The solid waste strategic plan presentation was informational; the board directed staff to explore operational efficiencies and alternative revenue sources before considering rate increases.
• The 2026 Strategic Priorities item was tabled to a future study session.