Highlights of the Fort Smith Board of Directors Meeting 12/9/25

At the Fort Smith Board of Directors study session meeting held 12-9-25 and led by Director Settle in the absence of Mayor McGill and Vice Mayor Rego, the Board discussed potentially taking over ownership of the Holy Cross, Rose Lawn, and Forest Park cemeteries currently owned by Fort Smith Cemeteries Inc. This issue was discussed initially at the 7-15-25 meeting, again including a proposed cost compiled by the City to maintain the cemeteries at same level as Oak Cemetery that is currently owned by the City at the 8-19-25 meeting, and at the 9-23-25 meeting with a proposal from Fort Smith Cemeteries Inc. for a reduced cost at a reduced level of maintenance for the three cemeteries instead of matching the standard for Oak.

Marty Clark with Fort Smith Cemeteries Inc. said that there is “not a path forward without it falling in your lap.” He said that payroll recently has only been able to be made with personal donations and that very soon it will be unlikely to be able to keep covering payroll and then the gates will be locked and no access or services will be provided. He said that if the City were to take over the cemeteries his organization would still be willing to help with fundraising for the cemeteries in an arrangement similar to Friends of Parks.

Director George Catsavis asked about the percentage that burials in the cemeteries are down. Clark answered that in November there were 2 burials versus 15 in the previous November and 14 in the November two years prior. He said that people are choosing cremation over burial. Director George Catsavis asked if Fort Smith Cemeteries Inc. has talked to the State. Clark said that they have talked with them “extensively” and the next step is for the State to guide the legal process through which the cemeteries are declared insolvent and put into receivership and a receiver is appointed by a judge.

Director Kemp mentioned that the City has owned Oak Cemetery since 1859. He said that there are currently 2770 unsold plots in Oak Cemetery. He suggested prioritizing maintaining what the City currently has at Oak Cemetery. He expressed concerns about expenses related to taking over the cemeteries having an impact on the budget. Of the receivership process, he said he is “curious to see where that goes.” He voiced his concern that taking over the cemeteries would set a precedent and that other non-profits in need would also want to be taken over by the City for other worthwhile causes such as helping with homelessness.

Director Christina Catsavis said that she is not worried about setting a precedent. She said of the cemeteries “We will end up with these eventually.” with the City being the most likely receiver to be appointed. She said that the City pours money into amenities and that the cemeteries are “historical and cultural assets.” She said it is “shameful” to consider not taking care of the dead.

Director Martin expressed his desire to “exhaust all options” before the City takes ownership of the cemeteries. He expressed concerns about the impact of taking over the cemeteries on the budget. He expressed concerns about private companies taking ownership of the cemeteries and raising the prices too high. Clark said that private companies are sometimes “super predatory.” Director Martin mentioned that a private company out of Kentucky currently operating cemeteries in multiple states, including having taken over Woodlawn in Fort Smith in May, has approached the Directors and Administration to express interest in taking over the cemeteries. He said that the company said that they would price-match rather than come in and significantly raise rates. He said that the company’s business model is heavily focused on pre-sales. Director Martin said “We’ve gotta look at that.” Clark said that the State has issues with that particular buyer and has advised to “stay away from them.”

Director Good said that it is “our responsibility” to make sure that the cemeteries are cared for. He voiced his view what the cemeteries are going to fall into neglect and blight and eventually end up the responsibility of the City one way or another. He expressed support for Fort Smith Cemeteries Inc. helping fundraise Friends of Parks style.

Director Kemp voiced his interest in hearing the interested private company’s offer. He also expressed his desire to hear what the State says and perhaps if the County might be asked to take on a percentage of the responsibility for the cemeteries.

Acting City Administrator Dingman mentioned that becoming the receiver in a receivership situation is voluntary. While it’s typically the local government that is the receiver for cemeteries because they aren’t profitable, the receiver could be anyone who is willing to take them on. He clarified that when the State has to step in on insolvent cemeteries that they do not take over ownership or operation of or responsibility for the cemeteries themself, but rather just guide the matter through the court receivership process until a receiver is named by the judge. He called the interest from the private company “worth exploring.”

Director Kemp suggested leveraging community non-profits for a short-term option. He suggested that the City “engage the faith community.” He suggested stipulating that if a private company takes the cemeteries over that they be legally bound to price match. Director Christina Catsavis voiced opposition to a government entity setting pricing for a private business in a free market.

Director Good asked when the Board might speak with the interested company at a study session meeting. Dingman said that they could be there next week. A special study session was called to begin directly after the regularly scheduled business meeting for next week to discuss the cemeteries.

The federal government requires that cities that receive and distribute HUD Community Development Block Grant (CDBG) and HOME grant funds submit a 5 year consolidated plan every 5 years. Fort Smith has begun work on theirs and part of the process included a public survey. The survey was posted on the City’s Facebook page, by Govdelivery notice, ads in two local newspapers, and paper copies were available at all of the library branches. 154 responses were received. The Board discussed the results of the survey and potential priorities for the plan.

For the Community Services Category for the CDBG grants the survey showed a preference for continuing to fully fund the public service category at the maximum allowable 15% and keeping the $5000 minimum and $20,000 maximum for requests. The survey showed a preference for prioritizing agencies serving senior citizens and children and addressing homelessness, healthcare, food, and basic needs.

For the Community Development category for the CDBG grants, the survey showed a preference for allowing all qualified non-profits to apply for agency rehabilitation and for continuing funding as is with lot purchases being the priority but leftover funds being available for agency rehabilitation The survey showed a preference for continuing to prioritize the Housing Rehabilitation Assistance Program to provide homeowners with funds to make repairs to their houses at the current rate of 38% of Community Development category funds and continuing to proving grants of up to $15,000 and an additional loan of up to $10,000 to each participating homeowner.

For the HOME grants, the survey showed a preference for prioritizing down payment assistance for the purchase of existing homes followed closely by preferences for new single family home construction and acquisition of existing homes to be rehabilitated and sold.

Director Good asked Director of Community Development Gabucci to explain for the audience how the Housing Rehabilitation Assistance Program works. She explained that the program is administered in-house and for each participant it provides grants of up to $15,000 with an option of adding an additional interest free loan of up to $10,000 to pay for repairs to their homes that are vital for health and safety. The repayment is based on the participants ability to pay with minimum payments of $20-$25. All funds paid back from the loans go back into the Housing Rehabilitation Assistance Program. Deed restrictions are placed on homes that receive the grants so that what is owed is pro-rated if the house is sold. If the owner passes away, if the house is passed to someone else who is also low-income they pass on the responsibility to repay the loan to the one who inherited the house. If the house goes to probate, it is handled on a case by case basis. If the house ends up sold on the open market, they try to recoup the amount owed on the loan. Director Good asked how many of the program participants apply for the loan in addition to the grant. Gabucci answered that almost all of the participants do.

Director Martin mentioned that 20 homes have been built with HOMES grant funds in the past few years and that with them receiving $1.3 million in funding for that it makes the average cost per home $66,000. He said that “looks good to me.” He advocated for more funds to be used for economic development. He mentioned other cities have used their CDBG grant funds for economic programs including a community grocery store in a food desert and business incubators. Director Good voiced his interest in helping a fresh food business on the North side of town. Gabucci confirmed that the funds could be used for economic development projects but that it is not currently something administered in-house in Fort Smith so either that program would need to be added in-house or non-profit agencies would need to apply for funds for their economic development projects.

Director Settle advocated for prioritizing projects for the benefit of children.

Even though Director Rego who originally motioned to add the item to the agenda was not in attendance, the Board discussed non-consent towing of vehicles requested by the Police Department. Towing is currently handled using a rotation list of 27 towing companies. The issue was discussed at the 8-13-24 meeting where there was discussion of switching from the rotation list to using one single provider.

After the previous meeting on the subject, in response to feedback from local towing companies in opposition to the proposed change, the use of the rotation list was continued. The Police department made some changes to address their troubles with the rotation system including requiring each company to have their own unique name and business license and accepting inspections done by the State instead of doing basically duplicate inspections in-house also. Chief Baker said that the discussion at the 12-9-25 meeting was not prompted by a request from his department to discuss it. He said “Everything’s been working fine.”

Director Kemp mentioned that he has not heard of any local businesses advocating for the change to a single provider system. He said of the current system, “If it’s not broke, don’t fix it.”

Director George Catsavis asked how many calls the Police make for towing. Chief Baker said 45-47 per month. Director Kemp said that he has talked to a towing business owner who said that towing calls from the Police make up 40% of his business.

During the Citizens Forum section of the meeting, Kim Fodge spoke and expressed dissatisfaction with the recent commercial trash rate increases and the impact they will have on the cost of collection for the dumpster for the Village Harbor Property Owners Association.

State Representative Ryan Rose spoke to encourage the Board to consider a one-time grant to help Hamilton Center for Child Advocacy. He called Hamilton Center “crucial to child abuse investigations across our region” and mentioned that 1000 children have been helped by the organization this year. He said that Hamilton Center lost the majority of their funding recently due to loss of federal grant funds and TANF funds.

Jo Elsken spoke and expressed happiness that in the past few years participation in Citizens Forum has increased. However, she voiced concerns about personal attacks during Citizens Forum and suggested that they no longer be tolerated.

Molly Echeveria spoke and expressed concerns about the maintenance at Oak Cemetery including the roads not being well-kept, an “unsightly” grate with no handrails, and shifted markers.

Krystal Cadelli spoke and expressed her view that once a month for 5 minutes is not enough Citizens Forum time. She also voiced her concerns about Parks spending. She also advocated for a national hiring search for a City Administrator.

Christina Cadelli spoke and said that he has never seen anyone personally attacked during Citizens Forum. He advocated for a national hiring search for a City Administrator.

Dan Williams spoke and praised the improvement in the number of water leaks mentioning that they are down from 811 recently to 177 currently. He also suggested putting off the planning for the former ACME property. He voiced support for holding Arkhoma accountable for what they owe for their sewer service. He advocated for considering City Administrator applicants other than Dingman.

Joey McCutcheon spoke and advocated for a hiring a national search firm for City Administrator. He mentioned that one of the applicants selected to be interviewed so far, Scot Rigby, was fired recently from the City Administrator position in Edmond, OK. He also advocated for the City taking over the cemeteries.

Following the Citizens Forum, Director Settle motioned to have a resolution added to next week’s meeting to allow the City to take over full control of Parrot Island waterpark. Director Settle said that the County recently has expressed interest in no longer being involved in the park and having the City take full control.

Director Settle also motioned for a resolution to be added to next week’s meeting extending American Resort Management’s contract to manage Parrot Island for 2026. Director Christina Catsavis voiced her opposition to the renewal saying there is “something going on with this resort management” and the City “shouldn’t be in business with them.”

Director Christina Catsavis motioned to add a resolution to next week’s meeting calling for an audit of Parrot Island.

All three motions will be added to the 12-16-25 agenda.