Fort Smith Board to consider big-budget ‘guardrail’ ordinance

The Fort Smith Board of Directors is set to vote Nov. 18 on an ordinance advanced by Director Christina Catsavis that she says will provide “guardrails” to help avoid another one-time budget problem like that faced with the Parrot Island water slides.

The water slides planned for Parrot Island Waterpark in Fort Smith that initially were to cost the city $2.1 million for acquisition and installation could now cost more than $6.3 million. Acting Fort Smith City Administrator Jeff Dingman told the board Oct. 21^[1] that the low bid to install the slides was $2.8 million, which would push the total cost to acquire, assemble, and install the slides to around $6.35 million, well beyond the board-approved budget of $4.2 million. The city, according to Dingman, has already spent $3.55 million to acquire the slides and to prep them for installation.

Catsavis’ proposed ordinance, which will be reviewed by city staff and legal, seeks to prevent the rushing of board approval of new items over $500,000. The ordinance would not apply, Catsavis said, to capital improvement plans (CIP) already reviewed and approved during study sessions and at board meetings.

“I want to make sure that we’ve got some guardrails that prevent a situation like this (water slides) from happening again,” Catsavis said during Tuesday’s (Oct. 28) board study session. “I’m fully open to amendments if we need to make those and I welcome everyone’s comments just as long as we’re keeping the spirit of the ordinance alive that we have that seven-day waiting period.”

Following are the provisions of Catsavis’ proposed ordinance.
• Study session requirement
Any capital project estimated at $500,000 or more, or one that significantly impacts debt or recurring operational costs, must first be presented at a public study session before it can be placed on a voting agenda.

• Mandatory waiting period
There must be at least a seven (7) calendar-day gap between the date of the study session presentation and any formal vote to approve the project.

• Required presentation materials
Staff must provide scope, cost estimates, funding sources, operational impacts, and alternatives considered.

• Limited emergency exception
Only for true emergencies threatening public health or safety, certified by the City Administrator and approved by two-thirds of the Board.

• Accountability and oversight
The Internal Auditor will conduct an annual compliance review and report findings to the Audit Advisory Committee and the Board.

Deputy City Administrator Maggie Rice and Finance Director Andy Richards estimated that new items not already noted in CIP discussions would amount to “less than a handful” each year.

There was no opposition from board members present at Tuesday’s meeting, and the board agreed to consider the ordinance at the Nov. 18 regular meeting.

It remains uncertain what will happen with the water slides. City staff has been encouraged by the board to come up with options. Directors Catsavis and George Catsavis have called for the slides to be sold to recover as much of the $3.55 million as possible.

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