Fort Smith Board of Directors Study Session – July 28, 2026

The Fort Smith Board of Directors held a study session on July 28, 2026, to discuss a proposed funding strategy for a new Police Precinct and Training Facility on city-owned property at 8200 Highway 71 South (former Crain Kia property) and to review strategic priorities for the 2027 budget. The session included extensive public comment and board deliberation, but no formal votes were taken. The board will consider adopting 2027 Strategic Priorities at the August 4, 2026 regular meeting.

Public Comments & Testimony

• Quentin Cunningham criticized city operational friction, including lack of transparency in the Central Business Improvement District (no agendas posted for 2026), and urged the board to address homelessness with practical solutions rather than moving homeless camps. He called for streamlined regulatory processes and board compliance with public records laws.
• Richard Morris recounted a perceived refusal by Director Christina Catsavis to engage in dialogue during a previous citizens forum, questioning her fitness for office given her mayoral campaign. He praised Mayor McGill’s proactive outreach.
• Shane McKinney expressed frustration with the protracted city administrator search (20 months, $35,000 cost) yielding only two candidates, arguing it reflects systemic issues. He advocated for a change to a directly elected mayor form of government and urged placing that question on the ballot.
• Jason Skarbitz used a satirical presentation to criticize the city’s use of Flock safety cameras, arguing they violate privacy. He called for requiring a warrant for license plate tracking and opposed the police precinct project as a “boondoggle.”
• Crystal Ivey (wheelchair user) described dangerous sidewalk conditions, specifically on Waldron Road from Grand Avenue to Rogers Avenue and on Phoenix Avenue where sidewalks end abruptly. She urged the board to prioritize sidewalk repairs, accessibility, and a reporting system. Mayor McGill and Director Rego acknowledged her concerns and promised follow-up.
• Joey McCutcheon opposed the police precinct, citing the $2.85 million purchase cost and high renovation estimates. He criticized board decisions on Parrot Island water slide, greenway trails (alleging a benefit to Phil White’s RV park), and the Ferris wheel obligation. He emphasized water infrastructure ($580 million needed) as the top priority and questioned board financial stewardship.
• Chris Cadelli opposed the second precinct, suggesting funds be used to renovate the existing precinct. He supported sidewalk improvements and questioned the urgency of hiring a permanent city administrator before the November election and the form-of-government vote.
• Crystal Cadelli (candidate for board) opposed spending $8–10 million on a precinct while the police department has staffing shortages and the fire department needs a pumper truck. She argued the city should sell unneeded properties and invest in water infrastructure, and that the city administrator search should be paused until the form of government is decided.
• Dan Williams opposed the precinct, recalling Chief Baker’s earlier emotional plea about budget cuts affecting retention. He noted the city has eight vacant police officer positions and major infrastructure debt, and argued that now is not the right time for a $10 million bond. He called for leadership focused on transparent finances.

Discussion Items

Police Precinct & Training Facility Funding Strategy

Acting City Administrator Jeff Dingman and CFO Andy Richards presented a financing plan using a bank-qualified tax-exempt loan secured by utility franchise fees (annual collections ~$8.4 million). Options included a 10-year term ($1.23M annual payment, ~$12.3M total) or a 20-year term ($753K annual, ~$15.1M total). The project would be phased: Phase 1 (training center and covered parking) at $6.1 million, Phase 2 (precinct) at $3.7 million, total estimated $9.925 million. Staff noted the city could reallocate police sales and use tax to offset general fund impacts.

Board & Staff Positions:

• Chief Danny Baker stated the second precinct is a long-term strategic need for the growing south side (due to I-49, annexation, Chaffee Crossing, Ebbing Air Base), but acknowledged it is not needed today and should not come at the expense of officer salaries. He estimated the city invests ~$100,000 per recruit and has lost 10 officers since January 1, 2026, to higher-paying agencies.
• Director Catsavis (Christina) expressed concerns about the financial climate, officer retention, and past misrepresentations about the property. She suggested a lease-to-own option at Chaffee Crossing but remained hesitant.
• Director Settle emphasized long-term planning and the need for police presence on the south side once I-49 is complete.
• Director Kemp questioned whether a smaller phased approach (e.g., $6.1 million) could be funded via pay-as-you-go over several years, but Deputy Chief Parkinson indicated Phase 1 must be done at one time. Kemp also raised the possibility of leasing the property to generate revenue.
• Director Good focused on officer retention, citing the high cost of training and loss of personnel. He supported delaying the precinct to prioritize pay and equipment.
• Director Martin noted a 30% general fund reserve ($0.7% projected) and asked about early payoff flexibility; CFO Richards confirmed flexibility would be pursued.
• Director Rego questioned response-time savings and requested analysis.
• Mayor McGill reiterated that bonds cannot fund salaries and that the board’s spending priorities (e.g., water slides) have been backward. He expressed regret over the purchase and suggested selling the property if no long-term plan is made.
• Director Good and others noted that franchise fee dedication would restrict previously unrestricted general fund revenue.

2027 Strategic Priorities

Acting Administrator Dingman presented a summary from the June 26, 2026 board workshop facilitated by Dr. Micki Voelkel. Topics included homelessness, competing general fund priorities, funding water projects, attracting investment (Issue 3, international industry), drive development (airport, barge channel, tribal partnerships), industry/manufacturing growth, public perception, healthcare crisis, and collaboration with Northwest Arkansas. Directors advocated for actionable, measurable goals focused on items the city can directly influence, especially efficient use of general fund resources. Staff will consolidate board suggestions into 5–6 strategic goals for adoption at the August 4, 2026 regular meeting.

Key Outcomes

• No vote was taken on the police precinct funding or project. The board generally indicated hesitation to proceed given financial pressures (water infrastructure, officer pay, retention, and existing debts). Staff was directed to continue exploring options, including potential sale or auction of the Crain Kia property, leasing, and alternative locations (e.g., Chaffee Crossing) that could combine a training facility with the planned 911 center.
• 2027 Strategic Priorities: The board provided informal guidance to develop a short list of priorities for formal adoption at the August 4 regular meeting. Emphasis was placed on measurable, actionable items within the city’s direct control.
• Preliminary August 4 Agenda was reviewed; no changes were proposed.