Fort Smith Director candidates: No to new taxes, mixed on government form

City Director At-Large Position 7 is the only contested municipal election in Fort Smith in the 2014 general election. Former City Director Don Hutchings and Parks and Recreation Commissioner Sherry Toliver are candidates for the position.

Each candidate was provided a list of six questions by The City Wire related to ongoing issues within Fort Smith city government and policies each candidate would like to pursue if elected to the city's Board of Directors.

● What are a few things you will seek to accomplish in a four year term on the Board of Directors?

Hutchings: "I am honored & humbled to invest time & energy in the future of our great city. I will work hard for new jobs & a stronger economy in Ft. Smith. Our citizens are very dedicated & have a great work ethic. New companies are wise to check out our people. Their level of excellence is amazing. We must promote this more & tell our story across the nation. True Grit is really who we are."

Toliver: "As City Director, I will seek to improve the economic environment in Fort Smith.  I'm committed to supporting small and large businesses and responding to their needs, especially as a key component of downtown revitalization.  From my experience as a businesswoman, I know that growing our economy is the key to improving opportunities for everyone in Fort Smith.  

"Successful recruitment of high-paying industries to Fort Smith also involves improving the amenities available to families and young people.  Studies consistently show that cities with interconnected networks of bike paths, trails, greenways and parks are extremely attractive to businesses when relocating.  I will continue efforts to revitalize and beautify our city to make it both more enjoyable for those who already live here and more attractive to prospective businesses.  

"As a member of the Fort Smith Comprehensive Plan Steering Committee and the Parks & Recreation Commission, I've helped plan our city’s future.  I look forward to implementing those plans as City Director."

● What are the biggest challenges facing the city of Fort Smith that can be addressed through city government?

Hutchings: "City government has a big impact on what new business comes to town & which ones stay.  Serving five years on the Planning Commission taught me so much about opening our doors to economic development."

Toliver: "As last year’s Comprehensive Annual Financial Report indicated, unemployment rose again in 2013. Likewise, sales tax revenues fell in 2013. Thus, the biggest challenges facing our city continue to be job creation, economic development, and revenue generation.

"Restoring faith and trust in city leaders also remains a challenge. Our city faces a number of legal and public relations issues. I support transparency in all areas and promoting proper auditing of city billing records to ensure that taxpayer resources are well managed.

"Fort Smith’s current budgetary constraints pose a substantial challenge. Paying competitive salaries to law enforcement and firefighters is essential. While these challenges may appear daunting, I have faith that Fort Smith’s future is bright if we are willing face these challenges proactively and work together to find real solutions."

● How do you propose fixing the funding shortfall in the police and fire pension contribution fund?

Hutchings: "We need to get the state legislature to assist us. Our police & fire pension is a huge challenge, but one that we can solve. They deserve it, & will get it. It may take some tightening of our budget to see this happen."

Toliver: "Fort Smith is not the only Arkansas city facing a funding shortfall. Unfunded pension liabilities are on the rise around the country, due to complex demographic and economic factors. As a result, numerous experts have examined the key issues of fairness and sustainability.  

"Fort Smith does not have to reinvent the wheel to find solutions.  We can seek guidance from the Arkansas Municipal League. We can look at success stories from other states. Successful pension reform strategies frequently involve creation of a reform coalition, including representatives of key stake holders. To ensure transparency, cities often submit their coalition’s pension reform proposal to voters for approval.  

"As City Director, I will work with my colleagues on the board and key stake holders to establish a pension reform coalition. By 2016, when state mandates will require detailed reporting of unfunded pension liabilities, we need to develop a plan to reduce and then eliminate unfunded liabilities and ensure sustainable pension funding for the future."

● Is there any circumstance in which you would be in favor of a tax increase for Fort Smith residents? (Please explain your response.)

Hutchings: "No, tax increases never grow a strong economy, but tax decreases due. When I served on the board previously, it was a great delight to lower the monthly sanitation rate by $1.10. That might not seem like much to some, but it sure helped our elderly & those on fixed incomes."

Toliver: "No, thank you. Fort Smith already has higher sales taxes than 86.3% of Arkansas cities and counties. See www.tax-rates.org/arkansas/fort_smith_sales_tax. Our businesses have to compete with merchants in surrounding areas and internet providers. Additional taxes would burden local businesses and drive consumers—and jobs—elsewhere.

"Arkansas is surrounded by states with many preferable tax provisions. For example, Texas and Tennessee residents pay no state income tax. Oklahoma taxes capital gains at zero percent and excludes capital gains derived from state property. Texas does not tax corporate net income. Oklahoma, Missouri and Louisiana allow a deduction for domestic production activities. See http://www.jonescpa.com/Overview-of-State-Taxation-Arkansas-and-Neighboring-States.pdf. In terms of competing economically with our neighbors, tax increases can have negative unintended consequences.    

"To foster a competitive business environment, we need to govern smarter. We should take a good look at where and how our money is currently being spent. Sometimes the problem is not in how much money you have, but in how you manage what you have."

● The city could face a lawsuit by the Department of Justice over violations of the Clean Water Act. What is your view on the city's efforts to be in compliance thus far and is there anything more the city could have done to keep the DoJ at the negotiating table?

Hutchings: "Ft. Smith has worked diligently for years to adhere to the Justice Department's demands. The Clean Water Act is important, & we have invested over $200 million to comply with their orders. There is still much work to do, but we have to stay in negotiations."

Toliver: "Fort Smith’s clean water problem has been with us for decades. As Arkansas’ second largest city, Fort Smith has a duty to continue compliance efforts pursuant to the Clean Water Act. Allowing flaws in our sewage system to contaminate local waterways should be unacceptable to all residents of the Natural State.

"City leaders must step up to pay for needed improvements in our antiquated sewer system or face expensive legal action and stiff penalties."

● How do you feel about a possible change in the form of Fort Smith government?

Hutchings: "Our citizens voted in this form of government. It is not perfect, but gives great representation to all. Each of our four wards has their own director. Three other directors answer to the entire city.  Our administrator is to be the 'expert' in city functions. Lastly, our Mayor represents our community & is elected by our citizens. It seems to be working successfully.

"We took two years off the board to get our new Dream Center going. It would be a great honor to serve again.

I humbly ask for your vote on Nov. 4."

Toliver: "Arkansas law gives Fort Smith voters the power to change our form of government. Since 1967, we have had a City Administrator form of government. If a petition is signed by enough registered voters, elections could be held for Fort Smith voters to decide whether we want to change to a Mayor-City Council form of government.

"Currently, only our Mayor and City Directors are directly accountable to voters. They receive only nominal salaries: $10,000 per year for the Mayor and $1,000 per year for each City Director. Our City Administrator is not accountable to voters, yet he receives over $100,000 per year. While the Board of Directors has authority to enact laws and set policy, the City Administrator serves as chief executive officer for the City.  

"Under a Mayor-City Council form of government, the elected mayor serves as ex-officio president of the city council with responsibility for keeping the city government running properly. Thus, the elected mayor enforces city ordinances and ensures that city residents receive maximum benefits and services for the taxes that we pay.

"If Fort Smith voters were to adopt a Mayor-City Council form of government, we would also have an opportunity to elect a City Attorney. Currently, Fort Smith is the only Arkansas city with over 50,000 people without a salaried City Attorney. Given persistent problems with contracted legal services, voters may wish to consider this alternative."