Fort Smith budget cutting ideas outlined; directors to review

Cutting the more than $227,000 spent on outside agency funding and nixing the city’s funding of the Mayor’s 4th of July celebration are just two of the many suggestions from city employees about how to respond to the Fort Smith budget shortfall.

The decline in the city’s general fund resulted in a recent move by Fort Smith City Administrator Dennis Kelly to seek budget cutting ideas from city employees.

On June 23, Kelly issued a memo to all city employees letting them know the city faces a $412,117 shortfall in the general budget. The memo set out a series of meetings between June 28 and July 8 to seek their input on how to cut the budget. Budget-cutting choices outlined in Kelly’s memo include having the city make up the shortfall by reducing employee benefits, requiring employees to take unpaid days off, taking a pay cut or eliminating positions through layoffs.

However, 239 of the 519 surveys returned by city employees rejected the options Kelly presented, according to a Friday (July 9) report by Richard Jones, director of the city’s human resources department.

The 70-page report from Jones includes 68-pages of comments and ideas from city employees about how the budget shortfall should be addressed. Many of the comments suggested cutting the Mayor’s budget for flowers, stop renting space from Stephens Production, close West End Park and stop the financial support for outside agencies (Golf Classic, Juneteenth, social service agencies, etc.).

Also, City Finance Director Kara Bushkuhl noted in a July 8 memo to Kelly that city department directors have forward $2 million in possible budget reductions for the 2010 fiscal year. Of the $2 million, $990,845 would come out of the general fund. The 2010 general fund — which supports police, fire, parks and other critical city functions — is a little more than $40 million.

Cuts listed by Bushkuhl include:
• $369,210 to freeze hiring for 10 unfilled positions, including two police dispatchers;
• $46,000 from Mayor’s budget for public relations;
• $24,626 from support for the Fort Smith Public Library;
• $20,000 for Darby House building repairs;
• $10,000 from the administrative travel budget; and,
• $1,700 to eliminate meals at board of director study sessions and special meetings.

The cuts listed by Bushkuhl would appear to be more than enough to address the budget shortfall without reducing employee pay and benefits proposed by Kelly.

City Directors are scheduled to discuss the suggested cuts and budget shortfall at the Tuesday (July 13) board study session.

Some of the discussions might revolve around some of the pointed responses city employees provided in the surveys. Those responses included:
• “Utilize city owned building for city offices and quit paying Stephen’s Production $75,000 a year rent on a building that we continually keep paying out of the taxpayer’s pocket to make improvements to.”

• “Eliminate Mayor’s 4th of July celebrations — get corporate sponsors. $15,000-$20,000.”

• “Eliminate general funded outside agencies.” ($227,689)

• “West End Park is an extra cost. Cut the cost there.”

• “Reinstate business license fees.”

• “Adjust costs for services (Sanitation and Utilities).”

• “Overtime is abused — people work overtime simply to collect a check — be smart and stop allowing it.”

“• We have over $6 million in employee insurance fund. Let employees vote on using OUR money to cover the shortfall. There are other funds available if the city directors so choose to use them or make them available.”

(Link here for more info about budget cuts.)