Fort Smith Board approves $162,000 in agency funding

Outside agency funding award recommendations were presented to the Fort Smith Board of Directors at today's (Nov. 12) study session.

The 2014 proposed budget is $162,000, though $310,000 in funding was requested, according to Administrative Coordinator Christy Deuster of the city's finance department.

In all, 26 different agencies outside of city government applied for funding in three categories – recreation, arts and humanities, and social and community services.

"The largest (area of requests) is of course social and community services," she said.

A core panel reviews all applications, Deuster said, with the funding eventually being divided equally among all three categories. The resulting funding equals $54,000 for each category, she said.

The most the city has ever released for outside agency funding is $230,000, according to City Administrator Ray Gosack.

Asked by Director Pam Weber whether there was concern among the panel that recommends funding levels regarding the equal split of funds when social agencies appear to be in greatest need, therefore submitting more applications, Deuster said it had been considered previously but without success.

"We did try one year…the panel did try to allocate the funds based on the number of applications received from each category and it did not go well," she said.

Because of the backlash, Deuster said the decision was made at the urging of the Board of Directors to return to the previous method of fund allocation.

The finance department and the panel charged with reviewing applications for funding is reviewing other methods for allocation based on how other cities release funds to outside agencies.

Director André Good questioned the use of the funds, noting that many of the outside agencies were using the funding received from the city not for providing services but to pay utilities on buildings. Deuster said there were many reasons for funding utilities, chief among them being that the agency is able to easily show a documented expense. She also said the funds used for utility payments free up funds in an agency's budget for other uses.

"When an agency applies for utility reimbursement, one of the things they're considering in the application process is they are going to need to provide some (information) on what additional services are you able to provide since you don't have to pay this?"

According to Deuster, paying the utility expenses essentially allows any given agency to keep the doors open, at a minimum.

Asked by Director Keith Lau whether other cities also provide funding for utilities, Deuster said with so few cities having a program such as Fort Smith's, it would be difficult to know.

The Board did not recommend any changes to the budget for outside agencies, meaning the funding will be included in proposed 2014 budget to be considered by the Board at a later time.

Agencies that accept funding from the city enter into a service contract with the city to accept the funding, according to Gosack.

The first meeting on the city budget will take place Thursday, Nov. 14, at the Fort Smith Police Department's Bartlett Community Room.