Highlights of the Fort Smith Board of Directors Meeting 4/29/25
The Fort Smith Board of Directors meeting held 4-29-25 began with a special meeting regarding discipline or termination of Chief Human Resources Officer Lolley in response to the recent issue of an employment offer being extended to Rebecca Cowan for the position of Internal Audit Director and then it coming to the attention of the Board and the public that Cowan is involved in criminal legal issues resulting in the Board terminating Cowan’s hiring. Being a personnel matter, the discussion of the matter was held in Executive Session. That discussion lasted two hours and 45 minutes. When the Board returned from Executive Session they publicly voted unanimously to direct Acting City Administrator Dingman to initiate the disciplining of the Chief HR Officer and report back to the Board on the matter. The City Administrator (not the Board) has sole power and responsibility over disciplining and hiring and firing all non-uniformed City employees including staff (except for the City Administrator and Internal Audit Director for whom those duties are under the power of the Board).
Immediately following the special meeting, the regularly scheduled study session began in which the Board continued its series of reviews of the all of the departments’ 2025 budgets. The Board and Administration have set the goal of departments with one program finding 5% of their budget that can be cut and departments with multiple programs finding 10% of their budget that can be cut. First up for discussion 4-29-25 was the Parks Department budget. Their proposed cuts total $418,040 for a total of 10.2% of their budget. Cuts would include…
delaying filling a vacant Maintenance Supervisor position until 10-1-25 and at that time reclassifying it as Foreperson to allow for it to be a lower-paid supervisor position that also performs labor in the field
a decrease in fees for outside services for studies related to the planning for the former Acme Brick property as a result of the master planning process extending beyond the 2025 budget year
eliminating retrofitting of lights to convert to LED for the Creekmore walking paths as that project will eventually be completed by OG&E at their expense
shifting retrofitting of lights to convert to LED for the Creekmore tennis courts to be incorporated in the tennis court improvement Capital Improvement Plan project
eliminating projects retrofitting lights to convert to LED for the Oak Cemetery sexton’s building, Elm Grove Community Center, and Garrison Avenue streetscape lights and instead replacing those gradually as the existing lights burn out
limiting bathroom stall improvements to only the bathrooms in Creekmore Park
a reduction in cost budgeted for playground mulch as older playgrounds are replaced with artificial turn and other surfacing
minimizing repairs to an Oak Cemetery pickup truck that it is no longer cost-efficient to maintain
not purchasing security cameras at Creekmore Community Center (where the existing ones have been inoperational for 10 years with no issues) and the Riverfront Glass Pavilion (where the cameras at the Blue Lion building can also serve that area)
reduction in spending for salaries at Creekmore pool through staffing adjustments based on the operating schedule and logistics
not purchasing replacements for inoperational spray noodles at Compass Park splash pad
not purchasing a new point of sale system for Creekmore pool
shifting the budget for Cisterna Park pump house and fountain repair projects to the 1/8 sales tax for capital projects for Parks program
Director Settle voiced his support for keeping the tennis court lighting project and the bathroom improvements in this year’s budget instead of delaying those projects.
DIrector Kemp voiced his support for making sure that Parks has adequate money in the budget for mowing equipment.
Director Good called the proposed cuts “small cuts” and said “I’m good with what you presented.” However, he acknowledged that the department asked for items like the security cameras, LED lighting, and mowing equipment because they “need it.”
Director George Catsavis asked how much money would be saved if the pocket parks were no longer maintained. Parks Director Deuster answered “not much at all” as they are mostly owned by the City in relation to mitigating stormwater flooding and the expense to maintain them is a small amount for labor and fuel.
The Board discussed proposed cuts to the Policy & Administration, Management Services, and Development Services departments. Their proposed cuts total $1,820,257.48 for a total of 6.2% of their budget.
Cuts were proposed totalling $241,034 from the Mayor’s budget for a total cut of 39.2% of the Mayor’s budget with the highest dollar cut coming from a 76.2% cut to the special events budget and the second highest dollar cut coming from a 50% cut to the advertising and promotion budget. Director Settle noted that the 4th of July Celebration is a separate line item from the special events line item. Mayor McGill assured that it was and that it rarely actually uses the whole $100,000 budgeted for the celebration. Director Kemp asked if the cuts would effect any public events that were previously to be scheduled. Mayor McGill answered “I don’t think so.” because he expects that community support and sponsorship will be able to make up for the cut funding.
Cuts were proposed totalling $75,000 from the Board of Directors budget for a total cut of 15.2% of their budget with the highest dollar cut coming from cutting building maintenance and improvements at the Blue Lion building including new front doors and hand rails. Dingman mentioned that there are plans in the works to in the near future create a Facilities program that would move the building maintenance costs for the City Hall and the Blue Lion into that department’s budget and out of the budgets for the Board of Directors, Purchasing, and other departments. Inspired by discussion of maintenance at the Blue Lion, Director Settle mentioned the need to fix the bad smell that is being experienced at the Blue Lion. Dingman agreed.
Cuts were proposed totalling $192,675 from the City Administration budget for a total cut of 11.8% from their budget with the highest dollar cut coming from salaries with the City Administrator position having been vacant a quarter or the year. Inspired by discussion related to printing costs including the ones incurred for the Change Helps signs, there was discussion of that program. Director Christina Catsavis suggested doing away with the program and the signs and criticized their large size and called them an “eye sore” and said that the panhandlers are “using them as shades at this point.” She said that when she originally supported the signs she envisioned them being much smaller and printed in-house instead of having to be printed by an outside service. She expressed concerns about the low effectiveness of the program. Public Relations Manager Buchfink said that over the past 9 months the program has brought in $900 for partner charities. Director Kemp voiced his support for taking the signs down and ending the program. Buchfink said “I feel like it brings attention to an issue.”
Cuts were proposed totalling $12,000 from the District Court budget for a total cut of .6% of their budget with the highest dollar cuts coming from air travel and education reimbursement. Cuts were proposed totalling $17,000 from the DWI Court budget for a total cut of 23.4% of their budget. Cuts were proposed totalling $15,500 from the District RISE Court budget for a total cut of 43.4% of their budget. Director Settle expressed his desire to not have RISE be impacted by cuts. Director Kemp agreed saying “This is not where I want to find our money.” It was clarified that neither specialty court (RISE or DWI) would be impacted by the cuts because of grants there obtained to cover the cost of training and associated travel that would be cut. It was mentioned that the Sebastian County Law Library helping cover some specialty court expenses is “very very helpful.”
Cuts were proposed totalling $3,500 from the City Prosecutor budget for a total cut of 1.3% of their budget.
Cuts were proposed totalling $42,000 from the City Attorney budget for a total cut of 10.2% of their budget with the highest dollar cuts coming from dues and subscriptions. Director Kemp asked about the dues and subscriptions. Dingman answered that the majority of that is a cut from the Arkansas Municipal League legal defense program. Director Christina Catsavis asked if the City uses the program. Dingman said that they have “periodically” and mentioned that Fort Smith’s participation in the opioid recovery funds class action was facilitated through the program.
Cuts were proposed totalling $63,883 from the Internal Audit budget for a total cut of 10.5% of their budget with the highest dollar cuts coming from salaries and benefits related to the vacant department head position and conferences and travel.
Cuts were proposed totalling $34,100 from the Human Resources budget for a total cut of 3.9% of their budget with the highest dollar cuts coming from building maintenance and employee recognition. Chief HR Officer Lolley mentioned that the HR budget is 80% personnel costs. Director Settle said “Employee recognition is very important.” Lolley said that the cut was made to eliminate a breakfast being held the last two years in recognition of landmark employee service anniversaries that was “not as well attended as we expected.” Director Kemp asked about the building maintenance to be cut. Lolley answered that that was able to be cut because it was budgeted for mold remediation in the HR offices in City Hall, but that mold remediation in that whole building was taken care of at the previous owner’s expense before the City purchased the building.
Cuts were proposed totalling $21,000 from the City Clerk for a total cut of 5% of their budget with the highest dollar cuts coming from advertising and promotion. City Clerk Gard mentioned that costs for advertising were able to be reduced because each year since switching running the legally required notices in the newspaper from running in the Southwest Times Record to running in the River Valley Democrat Gazette in 2023, the cost of that advertising has strongly decreased.
Cuts were proposed totalling $152,578 from Finance for a total cut of 8.1% of their budget with the highest dollar cuts coming from salaries and benefits and travel and conferences. The salary cut was from not filing an Accounting Manager position that has vacant the last couple of years. One thing that helped reduce travel costs is that the State Finance Officers’ Conference is being held in Fort Smith this year.
Cuts were proposed totalling $29,220 from Purchasing for a total cut of 9.4% of their budget. Chief Finance Officer Richards mentioned that they are also “evaluating” not filling the vacant Purchasing Manager position as he and the existing staff have been able to handle the duties so far while it has been vacant.
Cuts were proposed totalling $450,012 from IT for a total cut of 4.9% of their budget with the highest dollar cuts coming from salaries and software licensing fees. The salary cut would come from putting a pause on filling a vacant Senior Systems Administration position. Chief Information Officer Gentry said that while it could be paused, the position is “critical” and “We need that position.” Director Kemp said “This is not an areas where I would like to make cuts.” and expressed his desire to move forward with filling the position. He asked about the prospect of hiring someone. Gentry said that the prospect was good and “the pool was strong” for interviews they had already previously planned to schedule. Speaking for Director Rego who was missing his voice at this meeting, Kemp expressed Rego’s agreement with hiring for the position. Director Settle asked about the software licensing fees. Gentry clarified that after Covid software licensing fees "skyrocketed” but that they are plateauing now, so they were over budgeted.
Cuts were proposed totalling $22,388 from Communications for a total cut of 5.2% of their budget with the highest dollar cuts coming from advertising and promotions.
Cuts were proposed totalling $11,400 from Community Mobility for a total cut of 6% of their budget with the highest dollar cuts coming from architectural/engineering services and conferences and travel. Mobility Coordinator Mings mentioned that the architectural services were budgeted for projects that typically involve grants but that there haven’t been as many grant application opportunities recently. Director Kemp asked about the future of the Rides for Smilies bike rental program that had been funded by a grant through the University of Arkansas and the National Science Foundation that is running out soon. Mings confirmed that “It doesn’t look like it’s gonna stay funded.” Dingman mentioned that there has been work being done to try to find local sponsors to be able to continue it. Mings mentioned especially the possibility of being able to find enough sponsorship and partnerships to be able to keep the most high use bike stations, the ones near bike trail amenities like the Riverfront Trail and Maybranch Trail. He said though, as it is now, the program is funded until mid June and sponsors might be able to sustain it until possibly this fall. Director Kemp requested the Board be provided with data and statistics and sponsorship possibilities on the bike program at a future study session meeting.
Cuts were proposed totalling $40,750 from City Services for at total cut of 16% of their budget with the highest dollar cuts coming from outside services and travel and conferences. Cuts were proposed totalling $77,800 from Citizen Services for a total cut of 2.1% of their budget with the highest dollar cuts coming from advertising and promotion, postage and freight, and fuel. Citizen and City Services Director Robertson mentioned the department being challenged by the impact of increases in postage used to mail utility bills. In response, they intend to have a marketing campaign to push more people to sign up for e-bills instead of receiving paper bills in the mail.
Cuts were proposed totalling $102,417 from Engineering for a total cut of 5.5% of their budget. The Engineering budget is 96% salaries. The highest proposed dollar cuts would come from not filling one of the three Project Engineer positions that are vacant and have been unfilled for years. Engineering has been contracting with outside companies to fulfill the duties that would be done by those positions. Director Settle inquired about the price difference between hiring in-house versus using outside contractors. Engineering Director Snodgrass explained that there is “extreme difficulty” in hiring for that position. Director Settle said that he would reach out to his contacts at the Engineering Department at the University of Arkansas to try to help.
Cuts were proposed totalling $89,000 from Planning and Zoning for at total cut of 8.2% of their budget. 87% of Planning and Zoning’s budget comes from salaries. The highest dollar proposed cut would come from not filling a Planner position that has been vacant for 6 months. Director Kemp asked if the cuts would cause a drop in performance. Planning Director Rice answered “potentially, hopefully not.”
Cuts were proposed totalling $59,500 from Building Safety for a total cut of 4.2% of their budget with the highest dollar cuts coming from outside services for plan/file scanning and cutting out all travel. The travel was able to be cut because the entire staff this year is up to date with all the training they need, but they will need more next year. Also, in-house training will be provided to some newer employees. Director Kemp praised doing training in-house.
The Parking Garage that is funded 100% out of the Parking Fund (so its budget has no impact on the general fund or water/sewer funds) proposed $20,000 in cuts for a total cut of 9% of their budget with the cuts being made from small equipment purchases.
Neighborhood Services that is funded 100% out of the Clean Up/Demolition fund (so its budget has no impact on the general fund or water/sewer funds) proposed cuts totalling $47,500 for a total cut of 3.8% of their budget with the highest dollar cuts coming from outside services used for demolition and abatement. Neighborhood Services Director Gard said “Our budget is pretty lean.” He mentioned challenges because the cost of postage and certified mail “has gone up drastically.” But he said that they have been talking to the postal service about using electronic receipts for certified letters that instead of costing the $9.67 for traditional receipts only would cost $6.49. Director Good mentioned that fighting blight is a top strategic goal for the Board and said that they “can’t cut back” and said “I don’t see making this cut.”
The Board was presented with 6 different proposed options for the Police Department budget in the agenda packet.
Option A, the option requested by the Police Department, is to not make any further cuts to the Police budget, but rather to leave the budget at a total of $25,251,782.74. The Police Department mentioned that $1.4 million have already been cut from the initially requested 2025 budget and mentioned the impact of inflation as a challenge to the department’s budget. The Police Department says that Option A, leaving the budget as is, would result in “little to no impact” on service.
Option B, a 10% hold on spending enacted at the discretion of the department, would result in a total cut of $2,416,692. The Police Department says that Option B would have “moderate impact” on personnel and “minimal impact” on service
Option C, specific line item cuts including cuts to overtime for special events, facility repairs, recruiting, leadership training and professional development, reductions in fuel, and cuts to animal control, would result in a total cut of $367,710. The Police Department says that Option C would result in “moderate impact” on service.
Option D, specific line item cuts including cuts to all conferences/seminars/training that is not already booked, would result in a total cut of $292,640. The Police Department says that Option D would result in “severe impact” on training and education.
Option E, all of the specific line item cuts included in both Option C and Option D, would result in a total cut of $660,350. The Police Department says that Option E would result in “moderate/severe impact” on all functions.
Option F, called the “Nuclear Option”, including all of the line item cuts from Option E plus the 10% spending hold from Option B, would result in a total cut of $3,077,042. The Police Department says that with that option “important equipment” would not be repaired or replaced and needed training would not occur and morale and retention, hiring, and recruiting would be “negatively impacted”.
At the meeting Police Chief Baker said of the police budget, “There is no fluff in there.” and said of the proposed cuts “None of the cuts would come without and impact of some kind.”
Director Martin said “I’m not interested in making any cuts at all.” Multiple other Directors chimed in in enthusiastic agreement with Director Martin. The Mayor voiced his support for not cutting the Police budget. Director George Catsavis advocating for more funding for the Police including more pay raises.
Director Martin mentioned his desire to establish a more specific and clear cut policy of funding police services at special events. He expressed concern that currently Administration is just “picking and choosing who we charge and who we don’t.” Chief Baker mentioned that the cost to the department of providing special events police service is $69,000 each year. The Steel Horse Rally alone costs $18,000. Director Kemp speaking for Director Rego mentioned that the size of the events might be factored in in the consideration of whether the organizers are charged for the police or not. Baker agreed that there has “not been any real process for the evaluation”. He agreed that the there “needs to be a standard” regarding “who should get free services from the City and who shouldn’t.” He said that he is “apprehensive” that charging event organizers for police protection might drive people away from doing things the right way. He expressed concerns about safety issues and said that the police need to be involved in and aware of the planning. Discussion about a policy regarding funding for police services at special events will be added to the agenda of a future study session meeting.
