Fort Smith Board of Directors Study Session – October 27, 2026

The Fort Smith Board of Directors held a study session on October 27, 2026, at 6:00 p.m. at the Blue Lion, 101 North 2nd Street, Fort Smith, Arkansas. The agenda included a citizens forum; an agreed-upon procedures update on Parrot Island Waterpark; proposed 10-year Public Works and Sidewalk CIP, five-year Streets/Bridges/Drainage CIP, and Water/Wastewater CIPs; and a preview of the November 2, 2026 regular meeting agenda. No formal votes were taken, and no minutes were available.

Public Comments & Testimony

• Shane McKinney described a long-delayed alley repaving after a sewer project, arguing the city is not managing projects well and cannot handle the much larger consent-decree program without measured management.
• Janie Pugh urged early voting, humorously noting the Nov. 3 election date, campaign mailers, Rogers Avenue construction, and local ballot measures.
• Patrick McGuire asked the board to reaffirm the 2024 Fort Chaffee Redevelopment Authority dissolution resolutions, obtain a legal assessment of trust completion provisions, and begin a public transition plan with regular progress reports.
• Dan Williams praised Police Chief Danny Baker and asked that Baker be involved in choosing and endorsing his successor.
• A resident presented a proposal for a ward-by-ward, plain-language interactive CIP dashboard, stating the city already owns the software and that transparency would rebuild public trust.
• Stephen Cox distributed Fayetteville's data center ordinance, reviewed state Acts 851, 373, and 548, and questioned whether data centers would generate significant local revenue without stronger protective ordinances.
• Joe Elskin supported the Parrot Island direction, suggested reallocating some sidewalk funds to Northside neighborhoods, and opposed road-widening projects such as Massard Road and Chad Colley.
• Casey Millspaw, former Parks Commission chair and small-business owner/city director candidate, called for lower business costs and barriers and for open, inclusive processes.
• Sharon Lockwood raised privacy and wiretapping concerns about Flock cameras and asked whether data centers could be used for surveillance.
• Joey McCutcheon criticized the Parrot Island agreed-upon procedures as inadequate for $35,000 in taxpayer money, alleged pay raises for top administrators while firefighters lagged, and criticized the handling of the homeless issue.
• Crystal Ivy praised civic engagement, stressed the urgency of water infrastructure funding, and called for transparency on cybersecurity and inclusion of the Ebbing Air National Guard Base community.
• Glenn Forte proposed using the Bell Point Schoolhouse for a structured transitional housing and employment facility with sobriety, job, rent, and savings requirements.
• A resident cited a $45,000 misappropriation lawsuit involving a Parrot Island employee and asked how the city will finance water transmission and treatment upgrades.
• Chris Cadelli criticized the board for talking without action on Parrot Island, consent decree funding, 36% unaccounted water, nonworking meters, and budget priorities; he urged zero-based budgeting and honesty about future taxes and rates.
• A later speaker thanked a police department staffer for a FOIA response, asked for data center ordinance protections, and questioned whether executive-session committee appointments violate open-meetings/FOIA law.

Discussion Items

Parrot Island Waterpark Agreed-Upon Procedures Update

• Internal Audit Director Amanda Strange and Audit Advisory Committee Chair Deana Infield presented the Forvis Mazars agreed-upon procedures engagement covering 2025 and some 2024 operations of Parrot Island Waterpark.
• The presentation explained why the Audit Advisory Committee chose agreed-upon procedures rather than a GAAP financial statement audit or forensic audit, citing timing, cost, and the ability to tailor procedures to specific board and citizen concerns.
• Reported findings included monthly revenue recorded in the general ledger being less than revenue reported in financial statements for several operating months, invoices from 2024 deferred into 2025, more than $230,000 in outstanding vendor payables, less than $5,000 in cash on hand, and unresolved questions about a missing $8,000 check and concession operations.
• Staff did not characterize those items as fraud, noting a law enforcement investigation with a special prosecutor is ongoing and that computer equipment containing financial records had been confiscated.
• The Audit Advisory Committee recommended monthly financial reporting improvements, a revenue recognition policy for season passes, a capitalization and depreciation policy, a monitoring process for city-funded entities, internal audit procedures, and internal control documentation from the new management company.
• City Administrator Jeff Dingman said the report has been shared with Sebastian County, a new waterpark management company has been selected and is being negotiated with, and the draft agreement incorporates recommendations from the agreed-upon procedures report.
• Dingman also discussed a slide-project change order requiring an additional appropriation of roughly $1.9 million. Directors directed him to hold conversations with the prospective new operator about funding options before bringing another appropriation request to the board.
• Several directors expressed frustration, with Director George Catsavis questioning whether a forensic audit should have been pursued and whether red flags should have prompted stronger action. Staff noted personal bank records and criminal investigation matters are outside the scope of an internal audit.

Public Works 10-Year CIP and 2027 Sidewalk Program

• Public Works Director Matt Meeker presented the 10-year vehicle and equipment replacement plan for Streets and Traffic Control, totaling $1,120,000 in recommended 2027 replacements, including dump trucks, an excavator, a brine machine, pickup trucks, and an aerial bucket truck.
• The proposed capital equipment replacement fund contribution is $1,300,000 per year.
• The 2027 Sidewalk Program includes 3.21 miles of new sidewalk construction and 1.04 miles of sidewalk repairs, totaling 4.25 miles. Rouse Custom Homes has offered a public-private partnership to fund material costs for sidewalks on Boston Street and South 62nd Street.
• Sidewalk funding comes from state turnback sales tax revenue and building permit assessment fees. Directors requested future connectivity from the South 62nd/Fresno area to Bonneville school.

Streets, Bridges, and Associated Drainage CIP

• Engineering Director Todd Mittge presented the five-year CIP with a 10-year look-ahead, funded by the voter-approved 5/8 cent sales tax. The 2027 beginning balance is $64.06 million, with $19.59 million in expected sales tax revenue and $38.46 million in planned expenditures.
• Projects include street overlays and reconstruction, intersection and signal improvements, new roadway construction, neighborhood drainage, levee and bank stabilization, storm system mapping, and operations support.
• Multiple directors opposed the proposed Jenny Lind Extension, calling it unnecessary, a potential raceway through a neighborhood, and a project without neighborhood buy-in. Staff said the 2027-2028 money is mostly for design and acquisition and that a developer had offered to donate land. Directors asked staff to consult with Sebastian County and hold public listening sessions before proceeding.
• Directors supported prioritizing the Jenny Lind Streetscape sidewalks and connectivity for students, and several supported exploring a Riverfront Drive connection to Interstate 540 to move truck traffic off city streets.
• The proposed creation of up to two internal roadway paving crews, with roughly $12-13 million in 2027 equipment and startup costs, drew requests for more return-on-investment data before board approval.
• Director Neil Martin asked whether heavy front-loaded spending could be pushed into later years to preserve fund balance.

Water and Wastewater CIPs

• The 2027 funded Water CIP totals $5.9 million, including repair of the 48-inch Arkansas River crossing tunnel at Knox Street. The packet memo dates the tunnel to the 1950s, while the presentation said 1930s. Staff reported a visible leak of about 12 gallons per minute, roughly 6.3 million gallons per year, and plans to use smart-ball technology to inspect the tunnel.
• Other funded water items include construction inspection for the 48-inch transmission line Phase 2A1 and design/property acquisition for Phase 5 in preparation for another federal grant application.
• An unfunded urgent water needs assessment projects large future costs, including $35.5 million for transmission system work in 2027 and negative fund balances beginning in 2028 without additional funding.
• The 2027 Non-Consent Decree wastewater CIP totals $40.38 million, and the Consent Decree wastewater CIP totals $69.374 million. The 2027-2036 Consent Decree plan totals approximately $515 million, with total estimated expenditures to complete the Consent Decree of approximately $592.7 million.
• Directors questioned how the remaining consent decree and water transmission work will be financed beyond the 2018 revenue bonds and sales tax reallocation. CFO Andy Richards and resident Levon Morton discussed possible bond refinancing, debt service coverage ratios, and the need for a written financing plan.
• Dingman said the financial plan will be completed on time, and directors requested a detailed spreadsheet showing the funding path.
• Discussion of the proposed consent decree program manager contract drew strong board positions that it must include savings incentives or performance-based compensation; several directors said they would vote no without that structure.

November 2, 2026 Regular Meeting Preview

• The board reviewed the preliminary agenda for the November 2, 2026 regular meeting. The meeting was moved to Monday, November 2, because election day falls on Tuesday, November 3.

Key Outcomes

• No formal votes were taken during the study session.
• The board directed the City Administrator to discuss slide-project funding with the prospective new waterpark operator before submitting an additional appropriation request.
• The City Administrator confirmed a new waterpark management company is being negotiated with and that agreed-upon procedures recommendations are being incorporated into the proposed management agreement.
• Several directors opposed the Jenny Lind Extension and asked for neighborhood engagement and county coordination before further work.
• Directors requested additional data on internal paving crews and a written bond financing spreadsheet before making commitments.
• Directors signaled conditions on the consent decree program manager contract, including savings incentives, before they would support it.
• The next regular meeting is scheduled for Monday, November 2, 2026.