Fort Smith Board of Directors Study Session - July 14, 2026

The Fort Smith Board of Directors held a study session on July 14, 2026, to discuss two major agenda items: the potential city acquisition of three historic cemeteries owned by Fort Smith Cemeteries Inc., and the possibility of imposing fines on jurisdictions that transport unhoused individuals to Fort Smith. The board also considered a procedural change to move the citizens forum from the beginning of business meetings to the beginning of study sessions.

Public Comments & Testimony

• Marty Clark (President, Fort Smith Cemeteries Inc.) and Ed Ralston presented a financial update. They reported that the cemeteries are operating near break-even, with year-to-date revenue of $153,000, expenses of $128,000, and a net profit of $25,000 (including $24,000 in donations). They stated that 55 services were conducted through June, with three full-time and two part-time employees. They reiterated their request for the city to accept transfer of the cemeteries, arguing that a for-profit operator is not the best long-term solution and that the cemeteries are a public trust. They noted a $650,000 loan from First Security Bank in default for over two years, but the bank is supportive of a transfer to the city and would not require repayment. A perpetual care fund of $850,000 would transfer to the city. They estimated that adding two maintenance employees would cost about $100,000 per year.
• Casey Wilson (Executive Director, Hope Campus) stated that he has not seen evidence of people being bussed to Fort Smith, but acknowledged isolated instances of drop-offs (e.g., from Conway Behavioral Health). He reported that 109 individuals transitioned out of homelessness last year out of 519 unique individuals served (21% success rate). He noted that the shelter has 143 beds (90 emergency, 10 worker, 43 program dorm) and does not turn away people in inclement weather. He advocated for more case managers rather than more beds, and suggested alternative programs like a city-sanctioned trash cleanup initiative.
• Sharon Chapman (Next Step Day Room) noted that the point-in-time count has decreased 10% from 2023 to 2025 (406 in 2025) and that her organization is building 30 tiny home units opening in October 2027. She expressed concern about how nonprofits could verify a person's origin to enforce a residency-based service model.
• A video was shown of a large encampment on private property that cost the owner over $10,000 to clear.

Discussion Items

• Cemetery Transfer Discussion: Directors Rego and Savage expressed strong support for city ownership, citing the dignity of the deceased and the long-term public trust. Director Good initially favored a private operator for financial reasons, but after hearing that the city cannot fund a private nonprofit (per City Attorney Jeff Dingman), he shifted to supporting the nonprofit's continued operation. Director Neil Martin noted that a private company remains interested in purchasing the cemeteries. Director Rego made a motion to bring a resolution/ordinance to the next regular meeting for the city to take over ownership and operation. The motion was seconded.
• Unhoused Transportation Fines: Director Neil Martin introduced the discussion, citing anecdotal reports from first responders and businesses of unhoused individuals being dropped off from other cities. City staff reported that while there are isolated instances, there is no proof of systematic bussing. Director Rego opposed the ordinance as performative and philosophically objectionable. Director Good questioned its effectiveness. Director Settle strongly supported a "Fort Smith First" approach, noting that the point-in-time count has more than doubled from 179 in 2015 to 406 in 2025. Director Savage emphasized the strain on police and fire resources. Director Neil Martin made a motion to put an ordinance on the second meeting in August that would penalize municipalities or entities sending people to Fort Smith explicitly for homeless services. The motion was seconded.
• Citizens Forum Timing: Director Settle moved to move the citizens forum from the start of business meetings to the start of study sessions, keeping the five-minute limit and television broadcast, to ensure business meetings start on time. The motion was seconded and will be voted on at the next business meeting.

Key Outcomes

• Cemetery Transfer: A motion passed (with a second) to place a resolution or ordinance on the next regular meeting agenda for the city to acquire and operate the three cemeteries.
• Unhoused Transportation Fines: A motion passed (with a second) to schedule an ordinance for the second meeting in August that would impose fines or sanctions on other jurisdictions or entities that transport unhoused individuals to Fort Smith for the purpose of using homeless services.
• Citizens Forum Relocation: A motion to move the citizens forum to study sessions was seconded and will be voted on at the next business meeting (July 21, 2026).
• Data Collection: Director Settle suggested that the city begin formally capturing data on the origin of unhoused individuals encountered by city services, though no formal vote was taken.