Catsavis: ‘Apprehensive’ but ready to serve

The first of three new faces on the Fort Smith board of directors was sworn in Tuesday (Nov. 16), with George Catsavis casting his first official vote to approve a five-year consolidated plan for a Fort Smith program receiving funds from the U.S. Department of Housing and Urban Development.

Catsavis survived a municipal primary and general election to complete the two years of a four-year term (Position 4) vacated by former City Director Bill Maddox. Catsavis will face re-election in 2012.

In the Aug. 10 Fort Smith primary, Catsavis received 522 votes (41.17%) in the municipal primary, with Patrick Jacobs gaining 463 votes (36.51%) and Marshall Sharpe coming in third with 283 votes (22.2%).

Maddox endorsed Catsavis in the general election and Sharpe endorsed Jacobs. The voters endorsed Catsavis, who received 3,846 votes (57.35%) and Jacobs garnering 2,860 votes (42.65%).

Soon to join Catsavis on the board will be City Directors-elect Philip Merry Jr., and Pam Weber. Also to join the board in January will be Fort Smith Mayor-elect Sandy Sanders.

In addition to approving the HUD plan, Catsavis’ first board meeting included approval of property clean-up liens, reduction of the number of people serving on the Oak Cemetery Commission, and setting the schedule for 2011 board meetings.

He admits to being a little nervous about his first official duties.

“It was my first night. I’ll tell you, I was a little scared and apprehensive. I still have a lot to learn, but I think it will be interesting and I look forward to serving,” Catsavis told The City Wire. He added that the other board members “have been very helpful” in his transition.

Because he was elected to finish the term of a board member resigning during a term, Catsavis is officially seated earlier than the other board members. That means he is the only City Director-elect to participate in the 2011 budget hearings who will be a City Director when the budget is approved.

The two top topics of the budget hearing was the funding shortfall for the Fort Smith Convention Center and the need to meet revenue requirements for bonds issued for water and sewer system improvements.

The roughly $224.5 million budget, with all but about $40 million of that for large capital projects, is about 18% less than the 2010 budget. Estimated revenue for 2011 is $269.5 million, with $72.2 million from tax collections, $60.1 million from water, sewer and other fees and charges and $99.3 million carried forward from capital projects not completed in 2010.

City officials have instituted $1.43 million in budget cuts in 2010 to respond to revenue shortfalls. The biggest cut was a $717,000 reduction in payments to the city’s health & wellness fund. The cuts in 2010 and pushed forward into 2011 also include a decrease of about 28 full-time positions, and a $790,000 proposed cut to payments into the health & wellness fund.

Acting City Administrator Ray Gosack provided the city board a list of more than 65 budget cutting ideas totaling more than $1.69 million. The cuts were an alternative to cuts proposed Nov. 2 by then-City Administrator Dennis Kelly. Kelly had proposed to cut at least 20 jobs to cover a looming convention center funding shortfall.

Catsavis said after his first official meeting that he believes the 2011 budget is in good shape.

“I’m fairly satisfied with it. We’ve made some good progress on cuts, which we should have done a long time ago,” Catsavis said.

He is not pleased with the board’s consensus to pursue a combined 5% water and sewer rate hike to meet bond covenants related to revenue margins.

“I’m against that, and I’ll tell you why. There is no guarantee that we will cover our bond coverage with that (rate hike), because people will cut back more. And if we don’t cover that, then what’s next?” Catsavis said.

He said the board should have stuck with the $1.642 million in water department cuts and waited for the Burns & McDonnell rate review report due no later than March.

“Let’s see what that (rate report) tells us, and make adjustments then,” Catsavis said.