Fort Smith City Council Meeting Summary - December 9, 2025

The City Council convened to address the financial crisis facing Fort Smith Cemeteries Inc., review the five-year consolidated plan for community development grants, and discuss towing policies. A significant portion of the meeting was dedicated to deliberating the potential takeover of three perpetuity cemeteries, with council members expressing sharp divisions between the need for immediate civic stewardship and fiscal caution regarding budget deficits and precedents. Public testimony provided during the Citizens Forum highlighted concerns over rising utility rates, the imminent funding gap at the Hamilton Center for Child Advocacy, and calls for a more fiscally conservative city administrator.

Consent Calendar

• No consent calendar items were presented or approved in this transcript; the meeting proceeded directly to discussion items.

Public Comments & Testimony

• Kim Fodge (Village Harbor Property Owners Association): Expressed strong opposition to the 23% increase in commercial sanitation rates effective January 1, 2026. She argued that the new rates contradict the memorandum stating adjustments would begin in 2027 and projected a perpetual increase of 39-50% over four years. She requested an end date for these increases and urged the city to better charge non-residents for utility services.
• Rep. Ryan Rose (State Representative): Urged the council to consider issuing a one-time grant to the Hamilton Center for Child Advocacy. He stated that 70-80% of the center's funding has vanished due to realignments, and without immediate short-term assistance, the center could cease operations within six months.
• Joe Elskin: Advocated for stricter boundaries in the Citizen Forum, requesting that personal attacks be prohibited and that comments be informative rather than emotional. He encouraged the city to keep ambitious goals like electric vehicle stations and solar projects in view despite current budget constraints.
• Molly H. Averia: Criticized the council for prioritizing large-scale capital projects (like water slides) while neglecting basic infrastructure maintenance, specifically citing the poor condition of roads and safety hazards at Oak Cemetery. She called for a director more focused on fiscal stewardship.
• Crystal Cadelli & Chris Cadelli: Argued that the parks budget should be paused to address essential community needs like senior nutrition and infrastructure. They expressed support for a national search for a new city administrator and criticized the lack of transparency regarding the American Resort Management contract.
• Dan Williams: Expressed frustration with the reactive nature of city governance regarding the cemetery issue, noting the repetition of discussions without resolution. He suggested delaying planning for the ACME Brick property and called for a more efficient city administrator.
• Joey McCutcheon: Condemned the board's past votes to fund Fort Smith Cemeteries Inc. as unconstitutional and illegal, claiming it diverted public funds to a private entity. He called for a national search for a city administrator and urged the board to view the cemetery situation as a moral obligation to protect the dignity of over 55,000 interred individuals.

Discussion Items

• Fort Smith Cemeteries Inc. (Marty Clark, Board President):

  • Project Description: Presented the status of three cemeteries (Roselawn, Holy Cross, Forest Park) facing insolvency. Burial rates have dropped significantly (from 15/14 in previous years to 2 in November), leading to a revenue constraint and a personal funding deficit of $150,000 +/- $50,000 annually. The entity faces receivership if they cannot cover payroll or if the state intervenes.
  • Positions: Clark stated it is a civic obligation for the city to take care of these cemeteries in perpetuity. He emphasized that without intervention, the cemeteries will fall into disrepair and the city will inevitably face the cost and liability. He also mentioned a potential private interest (a group of buyers) but noted the state has advised caution regarding predatory pricing models.

• Director Christina Cassavis:

  • Position: Expressed full support for the city assuming ownership of the cemeteries immediately. She argued that the city is destined to inherit the assets in receivership anyway and that failing to act now is shameful. She stated that the cemeteries are essential public assets, not traditional nonprofits, and that the city's reputation is at stake. She dismissed the precedent argument, noting that no other nonprofit is likely to face this specific situation.

• Director George Cassavis:

  • Position: Expressed strong concern about the budget shortfall and the potential precedent of the city assuming private debt. He highlighted that the city still has 2,770 unsold plots at Oak Cemetery and that adding these cemeteries would strain resources needed for existing infrastructure. He questioned the viability of the process and the impact on the city's balanced budget.

• Director Neil Martin:

  • Position: Expressed strong hesitation to assume city ownership immediately without exploring all alternatives first. He advocated for investigating the potential private ownership option mentioned by City Administrator Deakin. He raised concerns about the financial risks of private ownership (potential price gouging) but also noted that state authorities have advised caution against it. He emphasized the need to avoid future sales tax hikes to fund the cemeteries.

• Director Good:

  • Position: Stated that while the decision is difficult, the city has a civic and community responsibility to act. He agreed with Cassavis that the cemeteries will eventually become a city liability if neglected. He expressed willingness to explore options like "Friends of the Cemeteries" fundraising or engaging the proposed private buyer, provided the city has a stake in the solution.

• Director Kemp:

  • Position: Expressed agreement with the need for the city to be involved eventually but insisted on exploring all options before taking ownership. He noted that government operations often take longer and cost more than private sector counterparts and expressed concern that private ownership might lead to price gouging if not regulated. He suggested exploring a potential partnership with the county to share the burden.

• City Administrator Jeff Deakin:

  • Report: Clarified that if the city takes over, the properties remain perpetual care cemeteries with state oversight. He explained that the receivership process allows the court to name any willing receiver (municipal or county), and historically, local governments are the ones named. He introduced a specific private entity (a company from Kentucky/Tennessee) that has expressed interest in acquiring the properties, noting they offered a "price match guarantee" and focused on pre-need sales rather than immediate burial revenue. He confirmed the entity has a relationship with state regulators.

• Non-Consent Towing Procedures:

  • Discussion: Chief Baker noted that policy modifications made in August 2024 (requiring business licenses and using state police inspections) appear to be working with no recent complaints. Director Kemp and Wilson Towing (owner of a local company) clarified that the Arkansas Towing and Recovery Board regulates pricing and complaints effectively, and that the current system is functional.
  • Positions: Director Kemp expressed that if the system is not broken, it should not be fixed. Director Christina Cassavis sought clarification on the legal jurisdiction for an Oklahoma-licensed operator operating in Arkansas, which was clarified as a foreign LLC compliance issue.

• Consolidated Plan & CDBG Funds:

  • Presentation: Candice Gabucci (Community Development Director) presented the survey data for the five-year consolidated plan. She explained the CDBG funding structure, including a 15% statutory cap on public services (e.g., Hamilton House) and the flexibility of the housing assistance program.
  • Positions: Director Good and Director Kemp expressed strong support for using CDBG funds for non-traditional economic development, such as addressing food deserts on the north side (suggesting funding a grocery store). Director Kemp asked about the potential for the "World Changers" event to re-engage with blight removal. Director Kemp and Director Martin both advocated for directing more funds toward youth services, specifically mentioning the Boys & Girls Clubs and Hamilton House, noting that domestic violence services ranked lowest in the citizen survey.

• Citizens Forum Logistics:

  • Positions: Council members (Good, Kemp, Settle, Martin) discussed the nature of citizen comments, with some expressing concern over the tone and others defending the right to criticism. The board discussed potential procedural changes to limit time or address personal attacks, though no motion was passed to formalize restrictions.

Key Outcomes

• Cemetery Study Session Scheduled: Director Settle proposed and the board agreed to hold a special study session next week to discuss the potential private ownership of the three cemeteries and the proposal from the private entity.
• Parrot Island Acquisition Request: Director Settle made a motion to add a resolution to the next week's agenda to approve the city's right to accept the ownership transfer of Parrot Island from the county. A second was provided.
• American Resort Management Contract: Director Settle made a motion to add a resolution to the next week's agenda to discuss extending the contract with American Resort Management for the water park in 2026. This was seconded, though opposition was voiced regarding the lack of prior audit evidence.
• Audit Request for Water Park: Director Kemp made a motion to audit the Parrot Island Water Park. This was seconded, with confirmation from staff that the city has legal access to financials for the third-party operator.
• FMS Project Economic Impact: Director Kemp made a request for the City Administrator to provide the original Congressional Research Service report or data supporting the $1 billion annual economic impact claim for the FMS project prior to the next budget vote. Administrator Deakin confirmed the report has not yet been located but pledged to continue the search.
• Budget Constraints Confirmation: It was documented that the expected net deficit for the cemeteries is between $100,000 and $200,000 annually, with a risk of service suspension (locking gates) if payroll cannot be met in the near term.