14-05-2025
Fort Smith voters say yes to tax reallocation, $385M in sewer infrastructure bonds
Fort Smith voted to reallocate existing tax revenue during a special election May 13, helping the city advance long-delayed sewer system improvements required under a federal consent decree.
More than 64% of voters supported the two ordinances on the ballot, while 66% voted in favor of issuing bonds to help fund the work.
'The City of Fort Smith thanks residents for approving the Sales and Use Tax measures to fund sewer system improvements,' said Josh Buchfink, public relations manager for the city. 'With this funding, we can issue bonds to complete consent decree-related projects efficiently and effectively, ensuring critical infrastructure improvements without increasing the existing sales tax rate.'
Unofficial results show:
2,381 of 3,687 voters approved Ordinance No. 19-25, renewing the 0.75% sales tax.
2,361 of 3,677 approved Ordinance No. 20-25, reallocating the 1% sales tax.
2,443 of 3,682 voted in favor of the bond measure.
Voters weighed in on three separate proposals:
Ordinance 19-25: Reauthorized the 0.75% sales and use tax approved initially in 2022.
Ordinance 20-25: Reauthorized and reallocated the 1% sales and use tax currently used for streets and drainage.
Bond measure: Authorized the city to issue bonds backed by 0.625% from the renewed 0.75% tax and 0.375% from the reallocated 1% tax, for a combined 1% allocated toward consent decree work.
'I think people looked at both sides of the issue and decided that we're not going to take the actions of the past. 'Kicking the can down the road' no longer works,' said Fort Smith City Director Neal Martin (At-Large), who supported the measures. 'The people chose to address the consent decree and further our city down a path to completing it.'
More: Fort Smith faces tough choice: Higher sewer bills or higher sales tax?
More: Fort Smith Board approves investments in infrastructure, recreation, historic preservation
More: Rego proposes 'CUTS' package to refocus Fort Smith spending on consent decree
The city had been making steady progress toward completing federally mandated upgrades to its sewer system. However, the 2019 flood delayed several projects and put Fort Smith behind schedule. Martin was involved in talks last August to request more time from the Department of Justice and the Environmental Protection Agency. The current target completion date is 2027.
'This will help us negotiate, particularly with the timeline extension,' Martin said. 'The EPA/DOJ specifically mentioned that in our discussions.'
Because voters initially approved the taxes, the Board of Directors could not reallocate the funds without holding another public vote.
'I'm incredibly grateful to the voters for supporting this important step forward,' said City Director Lee Kemp (Ward 3). 'With the passage of the tax reallocation, we now have a clear financial path to complete the long-overdue improvements to our sewer infrastructure. This vote allows us to finally shift from reacting to a mandate to proactively investing in Fort Smith's future.'
0.75% Sales and Use Tax Reauthorization
Originally approved by voters in 2022.
0.125% will continue to fund the Fort Smith Police Department.
0.625% will remain dedicated to federally mandated sewer system improvements.
If renewed, the tax would remain in place for an estimated 34 years, the projected term needed to repay the bonds.
1% Sales and Use Tax Reauthorization and Reallocation
Previously dedicated entirely to streets, bridges, and drainage.
Under the new plan:
0.375% will now be redirected to support consent decree work and authorize bonding.
0.625% will continue to fund infrastructure improvements.
Bond Issuance
Bonds will be backed by:
0.375% from the reallocated 1% tax.
0.625% from the renewed 0.75% tax.
Under the consent decree, 1% of the sales and use tax will be allocated to fund projects.
The bonds will support up to $385 million in:
Sewer capital improvement projects.
Federally mandated work is required under the terms of the consent decree.
Bond repayment will be structured over 30 years, but the term could be shortened if sales tax revenues exceed projections.
The Sebastian County Election Commission is expected to meet on May 23 to certify the election results.
This article originally appeared on Fort Smith Times Record: Fort Smith greenlights sewer bonds, reallocates existing tax funds
