Fort Smith board sets dates for budget hearings

The Fort Smith Board of Directors have set Aug. 17 and Aug. 25 as dates to review what might be a problematic 2010 budget cycle.

Each meeting will begin at 6 p.m. and will be held at the Elm Grove Community Center at Martin Luther King Park.

During a July 7 regular board meeting, directors requested a special meeting well ahead of normal budgeting cycles to discuss potential budget shortfalls.

Budget problems are potentially two-fold. Within the next 2-3 years, elimination of state turnback funds to support the Fort Smith Convention Center might require a potential budget expenditure of as much as $1.5 million in 2011, and between $1.8 million and $2 million for subsequent years.

Also, recent sales tax collections suggest the possibility of a $500,000 loss in 2009 revenue compared to 2008, according to Deputy City Administrator Ray Gosack. The city’s operating budget is in the $40 million range.

For the first five months of 2009, the city sales tax is down 2.19% compared to last year.  When comparing year-to-date budget figures, the city sales tax is 3.43% lower than projections.

“The actual revenue loss to the General Fund budget is $224,039 to date. As stated in last month’s report, all departments have been asked to review expenditures very carefully and keep spending as low as possible. Depending on next month’s revenues, it may be necessary to adjust the 2009 General Fund budget,” Kara Bushkuhl, finance director for the city of Fort Smith. noted in a recent memo.

Gosack said if the discussions are finished during the Aug. 17 meeting, the second meeting date would be cancelled. The meetings are also expected to include discussion of an “Organization Analysis” plan submitted by City Administrator Dennis Kelly.