City Board debates budget cuts and allocation formulas amid urgent operational needs

The Fort Smith Board of Directors held a regular meeting on May 6, 2025, where key discussions centered around budget allocations and proposed cuts to various city departments. The meeting highlighted concerns regarding the impact of these cuts on essential services and the need for proactive measures rather than reactive responses to budgetary issues.

Director Goode initiated the conversation by questioning whether the proposed budget cuts aligned with previous discussions held during a study session. He emphasized the importance of addressing needs in departments such as parks and transit, suggesting that deferring these needs could lead to greater issues in the future. Goode pointed out that cuts to essential services could negatively affect operations and customer service to citizens.

The board discussed specific cuts, noting that police and fire departments were exempt from reductions. However, concerns were raised about cuts to transit and parks, particularly regarding the loss of federal funding associated with these cuts. It was revealed that approving the proposed cuts would mean rejecting approximately $337,500 in federal funds, which raised questions about the long-term implications for city services.

Director Settle acknowledged the efforts of department heads in preparing the budget and expressed a willingness to revisit allocation decisions in the future. He noted that the general fund balance was at 32.8%, indicating a need for careful financial management moving forward.

The discussion also touched on the allocation formula for the Water and Sewer Fund, with some directors advocating for a return to the previous year's allocation model. They expressed concerns that the new allocation would disproportionately affect funding for essential services.

As the meeting progressed, the board recognized the need for further examination of the budget and allocation changes, with several directors agreeing that these topics warranted separate discussions rather than being bundled into a larger budget resolution.

In conclusion, the meeting underscored the board's commitment to ensuring that budgetary decisions do not compromise essential city services. The directors agreed to continue evaluating the budget and allocation strategies as they prepare for future financial planning.