City board looks to tackle 2026 deficit greenlights construction, service agreements

The Fort Smith Board of Directors will convene on Oct. 21 to deliberate on multiple resolutions aimed at enhancing municipal services amid a projected $8. 092 million deficit for the 2026 budget. A $1. 6 million agreement for constructing a wash bay facility for the Solid Waste Services Department is among the proposals.

The budget anticipates revenues of $53. 695 million and expenditures of $61. 788 million, continuing a trend of financial shortfalls. Rising health insurance costs and inflation are major factors impacting budget stability, according to Chief Financial Officer Andy Richards. Meanwhile, employee insurance agreements and traffic signal improvements also feature prominently on the agenda.

Director Neal Martin highlighted the necessity of achieving a surplus to bolster the city's financial health. The general fund balance, which stood at $34. 472 million at the end of 2024, is projected to plummet to $11. 818 million by the end of 2026. As the city navigates these fiscal challenges, it aims to advance sustainability initiatives through a renewable energy contract.