The Fort Smith Board of Directors has a packed agenda for its Tuesday (Aug. 19) meeting, with voting items to include a job incentive package, a resolution supporting National Historic Site funding, and another run at a new water meter replacement plan.
Up first is a request from the Arkansas Economic Development Commission and the Fort Smith Regional Chamber of Commerce to approve use of the state’s “Tax Back” program to support expansion of an unidentified business in Fort Smith. The program allows a business to receive a refund of sales taxes paid on building materials, new equipment and other eligible expenses that are part of an expansion creating new jobs.
“The current request is on behalf of Project Synergy, including all current and future subsidiaries, who plans to invest $5.56 million in building modifications and equipment for a new assembly line in its current facility in Fort Smith,” according to memo from Acting City Administrator Jeff Dingman to the board. “Its current workforce of 272 positions will be expanded with 63 new jobs at an average wage of $25.00 per hour.”
The name of the business will be revealed prior to the board vote, according to Dingman’s memo.
HISTORIC SITE
The Trump administration is pushing a budget that could cut almost $1 billion from operations of the National Park Service. It is believed that around 370 smaller parks and sites like the Fort Smith National Historic Site would either close or be transferred to the park systems in their respective states.
The Fort Smith site, designated as a National Historic Landmark in 1961, tells the story of the founding of Fort Smith, the Trail of Tears, the iconic Federal Judge Isaac Parker, the role of the U.S. Marshals on the western frontier, and other key historic events and people in western Arkansas and eastern Oklahoma.
According to the National Park Service, the Fort Smith site had 135,000 visitors in 2023 – the most recent data available – with tourists visiting the site spending $9.1 million in what is called the “gateway region” for the Fort Smith site. The spending supported $11.9 million in total economic impact, and supported 132 jobs.
The National Parks Conservation Foundation has called the Trump budget plan “a blueprint for dismantling the National Park System.”
Fort Smith Mayor George McGill sent a letter in May to U.S. Sens. John Boozman, R-Ark., and Tom Cotton, R-Ark., and U.S. Reps. Bruce Westerman, R-Hot Springs, and Steve Womack, R-Rogers, asking them to not only preserve the funding, but to push for more financial support.
“The resolution before the Board of Directors this evening calls for the protection and increase of funding for the Fort Smith National Historic Site and for its operation to be continued under the NPS as a site of national historic significance,” Chris Hoover, grants and governmental relations manager for the city, noted in a memo about the resolution on the board’s Tuesday agenda.
WATER METER PLAN
City staff plans to again ask the board to approve spending $125,000 for an assessment of the city’s water meter system. The board on July 22 tabled a measure to move forward on the first phase of what could be a multi-million dollar effort to eventually replace all city water meters.
Directors Christina Catsavis and Kevin Settle were the most vocal during the July 22 meeting in pushing back on the need to hire Framingham, Mass.-based Ameresco to conduct an “investment grade audit” to analyze the city’s water meter information.
The board on June 24 agreed to allow city staff, primarily Water Utilities Director Lance McAvoy, to work with Ameresco to develop options to modernize the city’s water meter system, which could help the city reduce an estimated non revenue water loss of around 35%. Ameresco executive Chad Nobles said during the June 24 meeting the cost to replace meters could range between $500 and $1,200 a meter, which would be a total cost range in Fort Smith between $20 million and $48 million. Fort Smith had 39,372 water meters as of late June.
The board packet for Tuesday’s meeting includes several pages that address concerns raised by the board and the public about the water meter plan, especially the cost to add new meters systemwide. The new Ameresco info updates the estimated cost range for advanced metering infrastructure (AMI).
“As for the estimate: costs will vary depending on technology selected, installation complexity, and site conditions,” Ameresco noted. “Nationwide AMI implementations range from $550 to $1,500 per account, which for Fort Smith’s 39,250 meters translates to an estimated range of $21.5M to $59M. Phase I ensures these costs are grounded in Fort Smith’s actual data – not guesswork.”
McAvoy and Acting City Administrator Jeff Dingman have argued that the city needs a complete systemwide analysis that only a professional services firm can provide. McAvoy noted that in 2024 the city had to write off more than $1 million in leakage adjustments. McAvoy said in the July 22 meeting he is 99% confident a complete audit will result in a modern meter system that could reduce errors, reduce losses, raise revenue and help avoid or delay future water rate increases.