FORT SMITH : $265 million 2009 plan gets directors’ approval
Posted on Wednesday, December 3, 2008
FORT SMITH — With little fanfare Tuesday, the 2009 budget for Fort Smith became law.
Couched in a crowded agenda, city directors voted 6-1 to approve the $ 265 million budget that includes a $ 105. 1 million operating budget and capital spending totaling $ 101. 5 million. Director Rick Parrish cast the dissenting vote.
Among the capital expenditures is nearly $ 63 million in water and sewer improvements and $ 37. 1 million on street and drainage projects.
To help pay for the water and sewer work, Fort Smith water customers will see a 3 percent increase in water rates and sewer customers will pay 5. 8 percent more for sewer service. Later in the year, Fort Smith directors are expected to consider a 25 percent sewer rate hike to raise more money for the continuing work on the sewer system.
Revenue to the city from federal, state and local sources is expected to be flat or only slightly higher than that expected to be generated by the end of 2008.
For example, revenue from franchise fees — the 4 percent charged to local utilities — is expected to increase from about $ 7. 4 million this year to about $ 7. 6 million next year. On the other hand, funding from the federal Department of Housing and Urban Development is expected to decrease by 26. 5 percent next year to just below $ 1. 4 million.
The city will resume granting employees merit and step pay raises, which were suspended in 2008, and employees will receive a 2. 5 percent cost of living increase. Employees received a 2 percent cost of living increase in 2008.
The city also plans to make purchases that were postponed last year. The 2009 budget includes replacement of 11 police vehicles, nine of them patrol cars, for about $ 270, 000 and a Fire Department pumper truck for $ 450, 000.
The budget also includes $ 750, 000 for construction of a new transit system transfer station at the south edge of downtown.
Fort Smith directors reviewed the budget during three budget sessions in November. During the sessions, they agreed to eliminate $ 139, 020 for the second deputy city administrator position. The position came open earlier this year when Dean Kruithof accepted the city manager job in Branson.
Three police dispatcher positions and two school police officer positions included in the proposed budget were eliminated. Some of the $ 170, 000 originally allotted for those positions will go for overtime pay.
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