Fort Smith directors may fudge on wage freeze

If given the choice between attending a Fort Smith city budget hearing and getting a root canal, remember that the dentist has narcotics.

The Fort Smith Board of Directors and city staff wrapped up on Tuesday (Nov. 24) two consecutive nights of two-hour meetings to discuss the proposed 2010 budget. And after months of warning that slowed sales tax collections would result in an austere budget, the directors reversed course and approved about $350,000 in additions to a general fund budget of about $40 million.

A decline in retail sales resulting from this messy national recession has resulted in a revenue loss to the general fund budget of $540,267 for the first nine months of 2009.

The total budget is roughly $273.7 million, but the general fund is what pays for important city functions like police, fire, administration, parks and sanitation. The remainder of the budget is locked in with tax revenue supporting bonded projects like streets and water/sewer system improvements.

Instead of presenting a definitive budget and defending the numbers as has been done by past city administrators, City Administrator Dennis Kelly simply left certain department requests out of the budget and encouraged department heads to make their case before the board.

And so they did.

Ultimately the board agreed to consider adding one new person for the district court, increasing a part-time job in the city clerk’s office to full time, adding five dispatchers to the police department, and supporting one of four pay-raise options for lower-paid city employees.

Following are a few of the highlights from the Tuesday night discussion.

WAGE FREEZE
The first cost-cutting recommendation to be amended was Kelly’s idea to freeze wages in 2010.

Kelly said he still stands by wage freezes. However, he explained that after recommending the wage freeze the police chief, fire chief and director of sanitation approached him about the freeze hurting the lower-paid staff. Kelly said conversations within departments suggest that most city employees understand the situation of lower-paid employees and “we’re OK with it.”

Fort Smith HR Director Richard Jones outlined four options to provide pay increases to certain pay grades. Option 1 provided a pay raise to those hire date is on or after Jan. 1, 2006, and Option 2 provided a lump sum payment to those hired on or after the same date. Both options would offer a “pay adjustment” to 187 employees and cost $139,348, including benefits. Option 3 removed the date provision and provided a raise to those earning below $40,000. Option 4 also removed the date provision and provided a lump sum payment to those earning below $40,000. The two options target 260 employees and would cost $229,126.

When pressed by Director Cole Goodman as to the best option for the city and employees, Jones recommended Option 3.

Director Bill Maddox said paying partial raises will only result in upsetting those who don’t get a raise. He said the city should stick with its no wage increase policy because employees have already been so advised.

“I will vote in favor of not giving any raises,” Maddox said.

MARSHALS MUSEUM
Although the city staff said the U.S. Marshals Museum has not asked for a new donation to the museum project, a few directors were insistent on adding a budget item supporting the museum. In January 2007, the U.S. Marshals Service selected Fort Smith as the site for the national museum. The U.S. Marshals Museum board of directors and staff are underway with what will be a $30 million to $50 million national fundraising effort. The roughly 50,000-square-foot museum will be built in downtown Fort Smith next to the Arkansas River. The city previously donated $100,000 to the cause.

Director Steve Tyler argued that the board should consider adding a line item for the Marshals Museum. He said it helps the nationwide effort to raise funds if people see the city donating funds. Director Cole Goodman agreed with Tyler, and added that the city should soon come to an agreement on donating infrastructure support — water, sewer, roads, etc. — to the museum.

The board eventually decided to consider a $25,000 pledge to the fund once museum construction begins. However, the pledge did not survive the board’s priority vote.

MOWING INTERSTATE INTERCHANGES
Fort Smith Mayor Ray Baker has long complained that the state is not doing enough to mow medians and interchanges along I-540 in Fort Smith. The city staff recently announced the funds to mow the high-traffic interchange at I-540 and Rogers.

Director Kevin Settle wasn’t willing to automatically approve a $35,000 increase in the Parks and Recreation budget to mow the interchange at Interstate 540 and Rogers Avenue. Settle wanted to know what other cities do to partner with the Arkansas Highway & Transportation Department.

“I just ponder, ‘Are we getting a fair shake?’” Settle noted. “If it’s a partnership, what does that mean?”

Tyler said something must be done to improve the appearance of I-540 as it routes through Fort Smith.

“Ours looks horrible compared to other cities,” Tyler said of the interstate stretch.

Ray Gosack said the $35,000 is likely a first year cost, because the interchange is in such bad shape that it will take about two years to get into shape. The cost may moderate after the first year or two, he explained. City staff said they would arrange a meeting with AHTD to learn more about partnership and cost options.

NON-DEPARTMENTAL FUNDS
The city funds each year projects and events that don’t fall within any particular department budget. In 2009 the city budgeted $3.372 million for such items, and will spend an estimated $2.982 million during fiscal year 2009. The city spent $3.951 million in fiscal year 2008 on such items.

However, the 2010 proposed budget is cut to $2.457 million.

Items in the non-departmental budget include:
• Fort Smith Classic: $36,000
• Fort Chaffee Redevelopment Authority: $31,000
• Downtown development: $268,253
• Mayor’s 4th of July celebration: $35,000
• Area Agency on Aging: $50,000
• City/Chamber/UAFS entrepreneurial initiative: $50,000