Fort Smith Board of Directors Study Session – February 10, 2026

The board held a study session on February 10, 2026, covering multiple topics including funding for spay/neuter vouchers, a proposed ordinance on third-party intermediaries, carryover requests, insurance renewals, and a comprehensive review of water infrastructure needs. No formal votes were taken; motions were made to place several items on the next regular meeting agenda. The session also included public comments.

Consent Calendar

• No consent calendar items were noted.

Public Comments & Testimony

• Andy Postric (Fort Smith resident): Expressed appreciation for reduced water leaks, the city's small-business culture, and the board’s decision on landfill gate fees (which avoided a $7/month increase on utility bills).
• Glenn Forte: Complained about treatment by police department staff regarding a stolen vehicle and inability to use restroom facilities; demanded accountability from the police chief.
• Kristin Kitchens: Raised concerns about subbasin P008 manhole condition, questioned whether GIS maps accurately reflect consent-decree readiness, and requested updates on subbasin drawings for Basin 10, 12, and 14.
• Crystal Cadelli: Criticized board members for lack of focus on infrastructure; opposed no-bid contracts and called for better financial priorities (e.g., sell excess parks land for infrastructure). Specifically named Directors Rigo, Settle, Good, and Kemp for perceived lack of commitment.
• Chris Cadelli: Opposed continued spending on Parrot Island water park slides; questioned the no-bid award and asked for updates on the city administrator search.
• Dan Williams: Alleged a conflict of interest among board members and referenced a text message incident; stated the board’s “bad decision” would continue to haunt them.

Discussion Items

Spay/Neuter Voucher Program Funding

• The city funded spay/neuter vouchers in 2024 and 2025, spending nearly $379,000 total. No funding was included in the 2026 budget, and residents have inquired about reinstatement.
• Vice Mayor Rigo proposed appropriating $150,000 for the remainder of 2026. Director Good concurred, noting the community need.
• Director Christian Savage clarified an earlier misunderstanding about the budget spreadsheet; she believed the program was included but later learned it was not.
• Director Neil Morgan cautioned against adding expenses without prioritizing, noting the budget was operationally balanced by only $192.
• Director Kemp supported reinstatement but suggested evaluating other measures to reduce stray animals (e.g., more than just vouchers).
• City Attorney Jeff (Director of Communications Josh B. Fink) provided data: in 2024, 1,331 vouchers were used; 98% through Kitties & Canines. Approximately 34% of recipients were from ZIP code 72901 (north side). Non-resident use dropped from 80 in first year to 5 in second year.
• The board agreed to place the item on the next regular meeting agenda for a vote.

Proposed Ordinance on Third-Party Intermediaries

• Director Christian Savage proposed an ordinance requiring written agreements (e.g., professional services, MOUs) for any third party that materially influences city transactions, citing the ARM (America Resort Management) situation with water slides. She stated that no written agreement existed with ARM, which estimated costs that later escalated.
• Director Kemp argued the ordinance could discourage reputable firms, increase insurance costs, and slow procurement; she suggested it was an overcorrection.
• Director Good noted that administration should have required a proper contract rather than relying on email estimates.
• Director Settle requested that ARM representatives be invited to explain their role.
• A motion to put the ordinance on the agenda for a vote was approved (no roll-call needed in study session).

Carryover and Carryforward Requests (FY2026 Budget)

• Chief Financial Officer Andy Richards presented preliminary fund balances: General Fund ending balance $25.7M, Water/Sewer $25.6M, etc. Total budget savings from FY2025 were $10.3M, with carryover requests totaling $3.5M.
• The board requested a clearer breakdown distinguishing items with active purchase orders (Attachment A) from those without firm obligations (Attachment B) before voting.
• A motion was made to place the carryover requests on the next regular meeting agenda.

Auto and Property Insurance Renewals

• Representatives from Arthur J. Gallagher (Denise Ingall and Phil Mary) recommended renewing coverage with the Arkansas Municipal League (AML).
• Property insurance rate: $0.36 per $100 of value (up from $0.31, with a $0.03 surcharge due to a 2:1 loss ratio). Estimated premium increase of $75,000–$100,000 pending property appraisal. Auto equipment: current invoice $820,000, likely to increase slightly.
• No policy changes were recommended; property deductible remains $10,000 per occurrence.
• A motion was made to place the renewal on the agenda for approval.

Water Infrastructure Comprehensive Plan

• Todd Mitke (new City Engineer) and Wes Hawkins (Hawkins Weir) presented an updated water system master plan.
• Key statistics: 719 miles of water lines; two treatment plants (Lake Fort Smith capacity 40 MGD, Lee Creek 10 MGD); 16 pump stations; 13 storage tanks. Non-revenue water is approximately 36% (up from 25% in 2022). Leaks have been reduced from 600+ to ~60 (90% fixed).
• Demand projections: max daily demand (MDD) of ~50 MGD is expected to be reached between 2027 and 2028 under current growth assumptions. Average daily demand (ADD) is about 33–35 MGD.
• Deficiencies are already seen in parts of the system (e.g., Rye Hill, low pressures); priority improvements include the Highway 45 transmission line (under construction, completion 2027) and a new 48-inch transmission line from Lake Fort Smith to Chaffee Crossing (estimated cost $200M). Treatment plant expansion (to 70 MGD) is also needed ($130M–$170M).
• Director Settle noted that 42% of water goes to customers outside Fort Smith; urged cost-sharing for regional projects.
• Director Rigo called for breaking the massive CIP into manageable chunks and exploring funding options (e.g., rates, impact fees, grants).
• Staff proposed implementing satellite-based leak detection (estimated $60K–$150K) and accelerating meter replacement (10,000 meters/year at $2.6M/year for four years).
• The board agreed to continue discussions on a phased approach; no formal action was taken on the CIP.

Key Outcomes

• Spay/Neuter Vouchers: Approved for placement on the next regular meeting agenda; likely vote on $150,000 appropriation.
• Third-Party Intermediary Ordinance: Approved for agenda placement.
• Carryover Requests: Approved for agenda placement; staff to provide additional detail on Attachment B items.
• Insurance Renewals: Approved for agenda placement.
• Water Infrastructure: No vote; board directed staff to explore leak detection options, provide updated growth projections, and develop a phased investment plan factoring in regional cost-sharing.
• Citizen Requests: Mayor acknowledged complaints about police; city administrator search update not provided.