Citing costs, Fort Smith Board pushes back against annexation plan

It didn’t take long for a majority of the Fort Smith Board of Directors to reject a plan that would annex 875 acres centered on the new intersection of Interstate 549 and U.S. 71 South, but the issue did result in an intense debate between two of the directors about the need to plan ahead for a possible annexation.

The proposal is to annex 875 acres in south Fort Smith near the new interchange. City staff says annexation of the property would provide services that would encourage development and create a larger tax base for the city.

However, costs to annex the property could include $3.5 million for a new fire station and a pumper truck, with an annual operating cost of $850,000. Other costs could include water system improvements of $3.3 million and sewer system improvements of $7.56 million over a 5-7 year period. The annexation would also include $1.8 million in street work over the next 10-15 years.

Wally Bailey, director of development services for the city of Fort Smith, said 8 of the 9 property owners in the area are “generally are agreeable to an annexation.” One owner is ill and the city has not had a chance to visit with her. Bailey said the staff needs direction because they are at the point that legal services will be needed to push a petition process to annex the property. That process would include presenting a valid petition to Sebastian County Judge David Hudson, and with his approval the question would then be presented to the Fort Smith Board of Directors.

City Director Don Hutchings jumped in to reject the idea.

“Why are we talking about this? … Where is the money going to come from,” he said.

The Board and city staff have struggled in recent months to balance a budget that includes pressure to fund a shortfall in the pension fund for police and fire employees. Ongoing discussion includes a possible 3% to 5% cut to the general fund budget.

Director Keith Lau joined in after Hutchings, saying the budget pressures do not make it feasible to pursue a costly annexation proposal.

“For me, we’ve got too much stuff going on. … From my perspective i would be for shelving this until we solve our other problems and then come back to it,” Lau said. “When I see an $850,000 drag to the general fund, I can’t get to excited about it (annexation).”

City Director and Vice Mayor Kevin Settle disagreed with Lau and Hutchings. He said the area is where future growth is moving and the Board should put the city in a position to benefit from the growth.

“It doesn’t have to be today, it doesn’t have to be tomorrow .. but we have to look at the future of the city,” Settle said.

Mayor Sandy Sanders also chimed and said with the budget problems that talk about annexation “sends the wrong signal” to citizens.

Director Mike Lorenz, agreed, saying that the issue is “something to keep on the radar, but keep on the corner of the desk for right now.”

Directors Tracy Pennartz and Hutchings then engaged in a spirited discussion about if it was even appropriate to discuss the annexation. Pennartz attempted to talk about how the costs were a problem, but the Board should talk about the future annexation idea. Hutchings interrupted several times to say “it’s not reasonable to discuss” annexation when the city is facing budget issues. Pennartz said the Board is able to consider the future even when addressing present problems.

“We’re talking about the vision of Fort Smith. … We can deal with more issues than one issue at a time. Our ability to entertain the idea is not limited because we are surrounded by budget issues,” Pennartz said.

The Board did not end the discussion with a clear consensus on how it would proceed, but did make it clear that an immediate annexation would not happen.