Fort Smith Board OKs $216 million budget, pay raises

The Fort Smith Board of Directors unanimously approved the $216.8 million budget for 2013, but rejected a proposal to increase the mayoral salary from $10,000 to $20,000 beginning in January 2015.

After several weeks of discussion, the Board approved a budget that included estimated general fund revenues at $46.6 million, an increase of 13.9% from $40.9 million in 2012. The 2013 budget anticipates a 1% increase in franchise fees and a 2% increase in property taxes.

Budgeted county sales tax revenue, which is around 40% of the general fund revenue, is expected to increase 1.25% in 2013. For the first 10 months of 2012, the countywide tax has generated $12.884 million for Fort Smith, up 1.9% compared to 2011 and up 1.21% over budget forecasts. In 2011, the tax generated $15.15 million, up over the $14.89 million in 2010.

General fund expenditures are estimated at $49.9 million, an increase of 18.6% over the 2012 budget. The increase is the result of the new sales tax programs for fire and parks, according to City Finance Director Kara Bushkuhl. Personnel authorizations show an addition of 16 full-time equivalent employees.

The operating budget for 2013 is $109.5 million and the capital projects budget is $107.3 million for a total of $216.8 million. In addition to the general fund allotment, the street maintenance fund is budgeted at $7.2 million; the water and sewer fund at $39.4 million; and Sanitation at $13.1 million.

Part of the new revenue the city will take in comes from the statewide 0.5% highway tax increase voters approved on Nov. 6. A new sidewalk construction program will begin as a result in early 2013 costing taxpayers around $917,900.

Sidewalk construction and repair will concentrate in downtown Fort Smith and in the areas near Northside High School, Darby Junior High School, Tilles Elementary, Howard Elementary and Park Elementary Schools.

Total funding sources will see a $306,000 increase from 2012 due entirely to state turnback funds allotted from the tax increase. Collections will not begin until July 1, 2013, and the city estimates that it will realize $640,000 during the abbreviated year with an estimated $1.5 million per year during the 10-year lifespan of the tax.

The 2013 budget also includes a 7.7% reduction in the residential sanitation fee collected by the Fort Smith Department of Sanitation. A fee reduction was promised when an automated trash plan began in 2006 was fully implemented. A fully automated system is expected to be complete in 2013.

The Sanitation Department will follow through on a 2012 promise to the citizens of Fort Smith with a 7.7% reduction in the residential sanitation fee.

The budget was approved 6-0. Fort Smith City Director Philip Merry Jr. did not attend the meeting.

A recent push by City Director Don Hutchings to raise the part-time mayoral salary from $10,000 to $20,000 was defeated in a 2-4 vote. Hutchings and City Director Andre Good voted for the increase, while City Directors George Catsavis, Kevin Settle, Steve Tyler and Pam Weber opposed the increase.

Because state law does not allow a salary increase during a term, the increase would have gone into effect January 2015.

In a 6-0 vote, the Board also approved a 1.9% pay increase for all city employees – except for the City Administrator – beginning Dec. 24, 2012. Various merit and step pay increases ranging up to 3% were also approved as part of a detailed plan across various city departments.

Department heads may block pay increase for employees on probation or facing other disciplinary actions.