Fort Smith board approves 2009 budget, pay raises

The Fort Smith Board of Directors approved Tuesday night (Dec. 2) the $265 million 2009 operating budget. The approval followed three separate public hearings in which only slight changes were made to the originally proposed budget, said Kara Bushkuhl, director of finance for the city.

The budget, which includes an operating budget of $105.1 million, would allow for the reinstating pay increases and a merit pay increase of 2.5 percent. (Link here to a previous The City Wire report providing more budget detail.)

There was no public input about the budget at Tuesday’s meeting.

However, the directors did spend several minutes talking about a $20,000 line item in the $265 million budget — funding for The Next Step Dayroom.

The hitch with the request is that several months ago the board of directors agreed to hold fast on the money it spends annually supporting area social service agencies. The city spends about 0.5 percent of its general fund on the nonprofit support. The board’s intent is to develop a more formal process in approving an agency’s request for funding. But at a recent budget hearing meeting, the board approved a $20,000 line item for Next Step.

City Director Rick Parrish argued that the original agreement was to not fund more projects until the city could develop a process to fund community projects/agencies. He said giving the money to Next Step would violate the agreement made between the city and other agencies wanting a piece of the budget.

City Director Andre Good made a motion to pull the $20,000 from the $150,000 in funding for the Area Agency on Aging. Good said that would essentially keep the budget at the same level. Good’s motion was approved 6-1.

The board then approved the 2009 budget on a 6-1 vote, with Parrish opposing.

Separate from the budget was an ordinance to approve the reinstatement of pay and merit raises. Parrish said city employees are deserving of the raises, but questioned the appearance of approving raises during these tough economic times.

“I just don’t think at this time, with a full-fledged recession that we are now in … I think it sends a bad message to the taxpayer out there,” Parrish said.

City Director Campbell reminded Parrish that the city pulled the pay raises in 2008 to give the city a chance to figure out how to reinstate the pay raise in 2009.

The board approved the ordinance 6-1, with Parrish, who is not returning to the board in January, opposing.