Agenda Highlights 5/12/26

At the Fort Smith Board of Directors study session meeting to be held 5-12-26, the Board will discuss establishing a cap or ceiling for fund balances. Current policy is to follow the Government Financial Officers Association best practices guidelines that do not include specifying a ceiling. Current policy requires a minimum contingency reserve balance of 20% to be maintained in the general, street maintenance, water and sewer, and solid waste funds. The Board will discuss placing a possible ceiling at 80% and outlining actions to be taken if that level is maintained for two consecutive years (possibly including allocating the excess funds to one-time capital improvements, deferred maintenance, equipment replacement, or debt reduction).

The Board will review the update on the budget for the first quarter. The general fund contingency reserve balance is at 37.6%. The street maintenance fund contingency reserve balance is at 68.8%. The water and sewer fund contingency reserve balance is at 46.1%. The solid waste fund contingency reserve balance is at 48%.

In response to a petition being circulated to put changing the form of Fort Smith’s city government from City Administrator form to Mayor-Council form on an election ballot for a vote,the Board will discuss the potential change in form.

In the Mayor-Council form, Fort Smith citizens would elect a Mayor, a City Clerk, 8 Council Members, a City Attorney, and a City Treasurer. All positions would be for 4 years with the Council Members serving staggered terms. The Council Members would be elected at-large by all the voters in the city unless an ordinance is passed to limit them to each just being elected by each of the wards. If the change in form were to be made, elections would be held in 2028 and all officials serving under the current form would remain in place until January 1, 2029.

Under the Mayor-Council form, the Mayor would be the CEO of the City. They would preside over Council meetings and would have a vote in the meetings. They would have veto power, but their veto could be overridden by a 2/3 vote of the Council. They would supervise all of the officers of the City. They would have the powers of a Sheriff to keep the peace and suppress disorder. The Council would have legislative powers and would manage and control the City’s finances.