Order seeks to halt ‘inappropriate’ spending by the City of Fort Smith
by February 11, 2025 5:54 pm 1,958 views
The City of Fort Smith may soon acknowledge through a negotiated court order that it engaged in inappropriate spending with area nonprofit groups, and promise that all future spending will comply with Arkansas law.
A lawsuit filed in the Sebastian County Circuit Court on behalf of Republican activist Jimmie Cavin by Fort Smith attorney Joey McCutchen alleged that the city violated Arkansas Constitutional provisions that prohibit governments from direct support of individuals or private groups.
The lawsuit targeted the $668,481 annual budget of the office of Mayor George McGill, saying that some spending from the office “unlawfully directed taxpayer funds to private organizations and nonprofits,” and such spending should be halted.
The Mercy Hospital Ball, Steel Horse Rally, and Fort Smith Round Table were included in the list of nonprofits that received money from the mayor’s office. The Round Table received $15,000 to support the Juneteenth event, the Steel Horse Rally received $4,000, and the Mercy Hospital fundraiser event received at least $5,000.
“While charitable organizations serve important roles in communities, it is not the role of government officials to decide (which) private organizations should receive taxpayer money,” noted the lawsuit.
McCutchen said he worked with attorneys with Fort Smith-based Daily & Woods, the law firm that represents the city, to draft an order in which the city agrees that the funding was wrong and will not be repeated.
“Except as noted below, the City further acknowledges that the following specific appropriations identified in the Plaintiff’s Complaint are not permissible and shall not be repeated: (1) funding for the Mercy Hospital Ball, (2) financial contributions to the Fort Smith Round Table Juneteenth Celebration, (3) donations to Steel Horse Rally, Inc., (4) sponsorships of golf tournaments or golf-related events, (5) financial support to Twisted Effects Braid Studio, LLC, and (6) any funding provided to “Begin a New Generation (BANG)” or any entity operating under that name,” notes an excerpt from the yet unsigned order.
The Fort Smith Board of Directors on Feb. 18 is set to discuss the order and vote on it. Interim City Administrator Jeff Dingman said the board obviously has the ultimate say about the order, but he agreed that terms of the order were reasonable.