Fort Smith Finance Director Retiring After 35 Years

The city of Fort Smith went through 13 financial directors in 11 years before Kara Bushkuhl took on the role on Oct. 6, 1980, and provided the city some much-needed stability in its finance department.

She had graduated with an accounting degree from the University of Arkansas in Fayetteville in May 1979, and started her career at Arthur Andersen LLP accounting firm in Tulsa, Oklahoma. 

When the Fort Smith opportunity arose, she was happy to find a position in city government, her desired field, and in the city where she spent most of her childhood, attending Northside High School.

And Bushkuhl plans to stay in Fort Smith, after she retires this October, 35 years after her hire date.

As finance director, she oversees 33 city employees and all facets of the city’s financial operations, including managing an annual operating budget of more than $100 million.

Bushkuhl is proudest of her role in financing large projects that include the expansion of Lake Fort Smith and the creation of the Lee Creek water supply in 1988.

She said the Lee Creek project was the first to be funded from sales tax bonds, and that the city managed to pay them off several years in advance, ending the sales tax early. “It was very successful.”

Bushkuhl said the finance director is the treasurer, chief accountant, and manager of the city’s financial reporting, accounts payable, accounts received, payroll, investment management, debt management, revenue collections and utility billing.

“Hallmarks of Kara’s work are her tremendous passion and attention to detail,” Ray Gosack, city administrator, said at the June 16 city board meeting. “Kara’s legacy will be her insistence on full disclosure, upholding the highest standards of integrity, implementing financial controls to safeguard the public’s resources and encouraging staff development.”

 

Eye For Accuracy

Throughout her career, Bushkuhl has been known for her accuracy and scrutiny of reports and figures.

In July 2011, she caught a mistake that saved Fort Smith from paying what would have added up to $115,000 a year. That month, the state charged cities 3.3 percent instead of the usual 3 percent for collection and distribution of city taxes, Bushkuhl said.

In response to an email from Bushkuhl, a representative from the Arkansas State Treasury said the chief fiscal officer had the authority to change the percentage.

But Bushkuhl doubted the validity of the representative’s statement, having seen the city pay the same fees for her three-decade career, and took the matter to the Arkansas Municipal League.

In the end, the money was returned to the cities, and the Arkansas Department of Finance and Administration explained the incident as an “accounting error.”

From Bushkuhl’s perspective, “I was just making sure the city receives its fair share of funds.”

Bushkuhl has also been known to personally check property franchise fee payments, and has found errors there. 

If left unchecked, the tax collection fee mistake in 2011 could have costs cities millions of dollars extra a year. The benefit was not just in Fort Smith.

“Kara has many notable accomplishments during her 35 years,” Gosack said. “Her reach is felt across the state.”

This is partly because of her involvement with the Arkansas Government Finance Officers Association.

However, it also has to do with how knowledgeable she is about city finance. During the course of her career, she became a mentor for both her employees and for her colleagues around the state.

“If there’s a new policy, everyone always comes to Kara,” said Jackie Joyce, a controller in the Fort Smith finance department.

 

A Proactive Professional

In the city board meeting speech, Gosack went on to say that Bushkuhl has worked with seven city administrators, four mayors and nearly 40 city board members. She’s prepared dozens of bond offerings and has seen nearly 13 million water bills sent to customers and 700,000 payroll checks issued to employees.

During her tenure, Bushkuhl and her staff have earned 29 consecutive certificates for excellence in financial reporting and 26 consecutive distinguished budget presentations as determined by the international GFOA.

In 2001, Bushkuhl was among the first 10 individuals in the nation to attain the certified public finance officer designation from GFOA, and she co-chaired the organization’s women’s public finance network.

On a state level, Bushkuhl has served in several leadership roles in the Arkansas GFOA, including president from 1988 to 1989.

In 2004, she was named the state finance officer of the year by GFOA.

That was 24 years into her career at the city.

Back in 1980, Joyce had been in the finance department for six years before Bushkuhl came aboard, and the city went through three finance directors during that period.

She remembers Bushkuhl was young when she took the position, “but that didn’t stop her from jumping in,” Joyce said. “It’s more than just a job to her.”

“She’s stayed on the cutting edge, and always seems aware of what’s coming down the pipe next,” Joyce said. “She has always known exactly what is going on financially for the city, is honest about it, and always tries to do what’s best, even if it’s a tough issue.”

 

Looking Ahead

One of those tough issues is a projected shortfall by 2021 in the city’s fire and police department pension plans.

“Part of the problem stems from increases in benefit programs for police and fire in the 1990s and early 2000s. However, the contributions that are required to be made include the amortization of old pension plans that had significant underfunded liabilities when those plans were closed to new members as of Dec. 31, 1982,” Bushkuhl said. “The state requires police and fire members be enrolled in the statewide pension plan, [the Local Police and Fire Retirement System.] Approximately half of the contribution rate is tied to the old plan’s liabilities and that contribution rate is applied to both old and new plan members.

“The city board is currently studying what additional revenue sources could be allocated for this purpose. It will be a factor in the 2016 budget. Jennifer will be dealing with this issue for a while,” said Bushkuhl, referring to her successor, Jennifer Walker, currently the deputy director of finance.  

While Bushkuhl might not miss those types of challenges, she said she will truly miss the people she works with. She has built friendships with several department leaders, and is proud to be on a team that cares so much about the work it is doing for the city.

However, she looks forward to spending more time with her family, which includes her siblings, nieces and nephews, all of whom live in Fort Smith.

She also said she will take some time to tend to her health, but after that, she’s open to possibilities.

Although she may or might not tackle another work project, she does plan to help out in the community.