Fort Smith City Board Study Session - January 27, 2026

The Fort Smith City Board held a study session on January 27, 2026, to discuss a proposed renewal agreement with Main Street Fort Smith for downtown development services, a program management strategy for consent decree construction projects, agreed-upon procedures for a Parrot Island Water Park audit, and a potential referral to the Arkansas Attorney General regarding water slide costs. The board also considered restoring funding for the animal voucher program.

Main Street Fort Smith Agreement Discussion

• Amanda Hager, Executive Director of Main Street Fort Smith, presented the organization's 2025 accomplishments, including $15 million in commercial investment, 19 new business openings (versus 4 closures), $1.8 million in estimated economic impact from major events, and the activation of the 7th Street Pedestrian Corridor with a mural and lighting. The organization secured a three-year Levitt Foundation grant renewal for free concerts through 2028.
• The organization’s 2025 grants and matching funds totaled $127,500. The city’s proposed annual contribution is $1,500. A community survey of over 1,000 respondents indicated 87% visit downtown regularly but noted perceptions of safety tied to vacant storefronts, lighting, and the visible homeless population.
• Board members discussed the need for measurable outcomes such as downtown residential and employment counts, vacancy rates, and return on investment. Director Neil Martin asked for data on downtown housing and employment. Director Campbell highlighted successful networking with other organizations. Director Kent called for involvement of the police liaison and street outreach. Director Catavas suggested funding the agreement from the county-wide sales tax allotment for downtown events.
• The board voted to place the renewal agreement on the February 3 regular meeting agenda for final approval.

Consent Decree Program Management Discussion

• Director of Engineering Todd Mitke presented plans to issue a Request for Qualifications (RFQ) for a nationally recognized engineering firm to provide program management for the city’s consent decree wastewater projects. The estimated remaining project cost is $600 million.
• The program manager would conduct a readiness assessment, develop execution plans, optimize project bundling and sequencing, provide independent cost estimates, and create a public-facing dashboard. A full-time engineer is anticipated to be stationed at City Hall.
• The proposed timeline: RFQ advertisement February 8, submittals due March 20, interviews April 14, contract presented for approval May 5.
• Board members emphasized expectations for substantial cost savings and value engineering. Director Catavas suggested tying compensation to savings achieved. Director Settle stressed the importance of independent oversight to prevent scope creep. Director Neil Martin expressed hope that proactive management could reduce costs by $100 million or more.
• The board also discussed the status of the consent decree modification proposal. City Attorney Colby Row noted that the city is awaiting response from the Department of Justice on a redlined version, with the last touchpoint in late December 2025. The Mayor requested continued follow-up.
• The board generally supported proceeding with the RFQ as outlined.

Parrot Island Water Park Audit Discussion

• Internal Auditor Amanda Strange presented agreed-upon procedures focused on calendar year 2025, with the external firm Forvis conducting the work during the city’s regular audit in April. The estimated cost is $30,000–$40,000.
• The procedures include review of cash transactions, outstanding invoices, cash transfers, compliance with reporting requirements, concession profitability, and recalculation of management compensation. The audit will identify discrepancies over a specified dollar threshold.
• Director Catavas requested that fiscal year 2024 also be included to allow year-over-year comparison, noting a reversal from profit to loss in 2025. Board members discussed the need to verify cash handling controls and inventory management.
• The board voted to place the audit contract on the February 3 regular meeting agenda for approval.

Potential Attorney General Investigation

• City Attorney Colby Row explained that the Arkansas Attorney General’s jurisdiction is limited and typically requires a referral from the board via resolution or from another agency. The discussion centered on whether ARM, the broker for the water slide project, provided misleading cost estimates that led to significant cost overruns (from $4.2 million initial estimate to $6.8 million actual).
• Director Neil Martin raised concerns about the lack of a formal contract with ARM and potential misrepresentations. Director Kemp advocated for first completing due diligence through the audit before escalating, noting that the board had already passed measures to prevent future overruns. Director Catavas suggested a resolution may eventually be needed.
• No formal action was taken. The board agreed to revisit the topic after receiving the audit results.

Other Matters – Animal Voucher Program

• Director Savage raised the restoration of the animal voucher program, which was cut from the budget. She stated the program is well-utilized and sells out annually, and noted that during the budget meeting the city administrator had indicated items marked “no buy” would not be cut. The board agreed to place this discussion on an upcoming study session.

Key Outcomes

• The renewal agreement with Main Street Fort Smith will be considered for final approval at the February 3 regular meeting.
• The contract for Parrot Island Water Park agreed-upon procedures will be considered for approval at the February 3 regular meeting.
• The consent decree program management RFQ will proceed as presented, with the timeline to be finalized.
• The board will revisit the Attorney General investigation discussion after the audit is completed.
• The animal voucher program restoration will be addressed in a future study session.