Sales tax, bond plan for consent decree work approved by Fort Smith voters

Fort Smith voters on Tuesday (May 13) approved by a wide margin a sales tax reallocation plan to provide $360 million over 30 years to fund federally-mandated sewer system work. The vote potentially puts a frustrating and costly federal consent decree on a path to completion.

The Fort Smith Board of Directors on Feb. 21 approved a sales tax reallocation plan to fund $360 million of federally-mandated sewer system improvements. Voters were asked to vote for or against each of the three items. All three items needed voter approval before the plan could be implemented.

• Reallocation of a 0.75% sales tax first approved by voters in 2022 to pay for consent decree work and to pay bonds, with 0.125% used for the Fort Smith Police Department
• Renewing the 1% street tax but reallocating 0.625% for streets, bridges and drainage work, with the remainder of the tax to fund consent decree work and bonds
• Approval of the authorization to use the tax revenue to issue bonds to pay for the work.

The board subsequently approved a resolution that will give voters a chance in 2030 to vote on the reallocated portion dedicated to the street tax program and the portion dedicated to police funding.

THE VOTE
Reallocation of the 0.75% received 2,381 votes for (64.58%), and 1,306 votes against (35.42%).

Renewing the 1% street tax with noted changes received 2,361 votes for (64.21%), and 1,316 votes against (35.79%).

The vote to approve authorization of bonds to be funded by the sales tax revenue received 2,443 votes for (66.35%), and 1,239 votes against (33.65%).

THE CONSENT DECREE

After decades of failing to maintain the sewer system, officials with the U.S. Environmental Protection Agency and the U.S. Department of Justice filed a consent decree in 2014 with the City of Fort Smith that required certain improvements to the city’s sewer system.

While estimates vary, the consensus estimate is that the total cost could approach $800 million. According to city information, the city spent around $49 million prior to enactment of the consent decree, and spent $87 million on consent decree work between 2015 and 2019. Between 2020 and 2023, the city spent $64.1 million on consent decree work. The total for the work, including prior to 2015, is around $200 million.

REACTION
Former Fort Smith City Director Lavon Morton, who helped push the effort to gain voter approval of the plan, said voter approval will help the city get the consent decree work underway and allow the city to tackle other issues.

“I am extremely grateful to the people of Fort Smith who voted for this important step. It’s really important for get us to get to a place where we don’t have a consent decree story in the news every week. … You know, we have so many other things going on,” Morton said after election results were posted.

He also praised Mayor George McGill, the Fort Smith Board “for being behind it,” and city staff who helped provide helpful data for residents on both sides of the issue.

“A lot of people deserve a lot of credit for this vote tonight,” Morton said.

Acting Fort Smith City Administrator Jeff Dingman said prior to the election that the city did not have a “plan B” in the event voters rejected the plan.

“There is an estimated cost to the amount of work that needs to be done over the next 5-6 years (the $360 million),” he noted in an email interview. “That doesn’t change if our idea for funding it does not get approved. As has been discussed in the public presentations on the sales tax measure, user rates will have to be evaluated.”