Highlights of the Fort Smith Board of Directors Meeting 5/23/22

The Fort Smith Board of Directors meeting held 5-23-22 was led by Director Settle in the absence of both Mayor McGill and Vice Mayor Rego. The Board voted unanimously to change the agreement with Payit for the new online utility bill payment system to make it so that the City pays all of the transaction fees. The original agreement would have passed the 80 cent transaction fee and 2.5% processing fee for debit and credit cards or $1.25 per transaction processing fee for ACH payments on to the customers to pay. The cost to the city for paying these charges is expected to be $500,000-$600,000 per year. Director Morton mentioned that in the meeting when the agreement was originally approved the Board focused on other aspects of implementing the program rather than the fees. He spoke in favor of the city paying the fees saying that that is more in line with how most commercial transactions are handled. Director Martin agreed added that the only time he typically sees the fees added on is with transactions with the government (like paying for car tags online). He said of passing the fees on to the customer “It is a flaw” and “We need to rectify it”. Director Catsavis asked Utility Director McAvoy for more information on Payit and why they were selected as the new provider. McAvoy said that in addition to being the lowest cost, Payit is the “gold standard” for that type of provider and also praised their highest tier cybersecurity rating.

Director Morton presented for the public a presentation about the .25% sales tax renewal for the Fire Department and Parks capital improvement projects and .75% sales tax renewal for the Police Department and Consent Decree sewer work to be voted on by the public on the May 24th election ballot.

Directors Morton and Martin advocated for the tax. Martin also praised the Sales Tax Review Committee that has been created to review the money coming in and being spent from the taxes to assure that it is going to the departments specified on the ballot. Director Morton clarified concerning the notice that went out in the agenda packet about the vacancy on the Committee that Richard Morris who had been appointed to the committee withdrew for health reasons. Director Catsavis reminded that he has in his time on the Board “never supported a new tax” but voiced his support for these tax renewals saying that it is “crazy not to vote for this”. Director Settle spoke in support of the tax calling it an “opportunity to change the city again”.