Highlights of the Fort Smith Board of Directors Study Session Meeting 9/28/21

At the Fort Smith Board of Directors study session meeting held 9-28-21, there was a presentation of the study conducted by the Johanson Group that compared the pay and benefits for Fort Smith city employees with that of some other cities and private employers. Fort Smith was found to be lagging behind competitors in its offerings. Our insurance plans for the individual plans have higher deductibles, higher premiums, and higher out of pocket costs. Our insurance premiums for the family plan were lower than the average. Our retirement contribution was significantly lower, 5% versus 9%. We only offer 12 sick days versus 18.3. Our vacation day are also notably fewer.

A plan was proposed with raises from a half percent to 3 percent for non-uniformed employees and a 4% raise for new fire employees and up to 12 percent raise for existing employees. The proposed plan would raise the lowest pay grades from minimum wage to $13.54/hr. The necessary increased budgeting for this plan would cost an estimated 1.4 million. It was also calculated that a similar plan that would involve the lowest starting wage to $15/hr instead would require 2.4 million.

The Board seemed concerned with the findings indicating that we are not competitive enough to attract and retain employees. Director Settle expressed that he felt that even the proposed plan would not be an adequate solution. He felt the study conducted didn’t account for the new conditions and massive changes recently in the job market. He stated we “need today’s metrics, not yesterdays” . He also felt it did not focus well enough on our specific local market. He pointed out that here factories are “starting at 16-17-18 an hour and can’t even get people.” It was also pointed out that other high paying employers are expanding and adding lots of jobs that are drastically higher paying even than the proposed $13.54 (Hytrol was highlighted as bringing in new workers at $21.50/hr).

The Board overall expressed an interest in focusing first and most on increasing competitiveness for the jobs on the lower end of the pay scale. The lower wage jobs are where the hiring shortfall is causing the most dire consequences noticed by citizens (lack of enough people to fix water leaks in a timely manner, grass at city facilities having to go unmowed,etc.). Director Dawson also pointed out a human concern on that end especially,too, that at our current rate it’s possible for our city employees to still be working full time and living below the poverty line.

In addition to the general agreement that the lowest wage tiers need the most attention, several other possible ideas were discussed. Directors Dawson and Settle spoke out in favor of strong wage increases at the bottom tiers and an emphasis on other benefits increases for the higher tiers like more days off or different scheduling that would result in 3 day weekends. Director Catsavis asked about sign-on bonuses for police and fire employees. City Administrator Geffken said that while that was not an option explored in the study that was conducted it had been discussed with the Police Department and they are actually in discussion with city on an alternative plan that does not include hiring bonuses that is viewed by them as more fair to existing officers. Director Rego suggested that we might get rid of our old very rigid pay structure altogether and instead give each Department Head a salary budget to work with and empower them with the flexibility to offer pay as they see fit to best attract the right people to fill the right positions. Geffken responded that it is an uncommon approach for municipalities to use that sort of system and pointed out that New York tried it once and after 3 months reverted to their previous more structured system. Director Morton expressed a desire to make sure that budgeting for all the departments’ capital expenses be kept very tight this year to help accommodate increased spending on staff pay and benefits.

The Board also discussed the upcoming leasing of the Kelley Ballfields . For the last 40 years the fields have been leased to the Fort Smith Church Baseball League, but that agreement is set to expire soon. There had been criticism from the public about the previous length of agreements regarding the Ballfields, so instead of the old 10 year terms, the new proposed agreement will only be for one 3 year term with the option of 2 one year renewals. Another criticism had been that some felt that not enough was done to make the opportunity for the contract well publicized and open to a greater number of interested parties. To correct that issue, this spring it was publicly advertised that any organization wishing to lease the fields (must be a non-profit and any significant proceeds from the running of the park must be put back into improvements at the complex) was invited to submit a proposal and to go through a selection process that included a 30 minute presentation, a 20 minute interview, a 10 minute Q&A session. Two organizations, the Church League and the newly formed Fort Smith Youth Baseball and Softball, submitted proposals and underwent the process. After the scores were tallied and the panel discussed the proposals, the panel unanimously (in a close decision) favored the proposal from Fort Smith Youth Baseball and Softball. As a courtesy, the Kelley family that donated the land for the ballfields to the city were also consulted and they also favored the change in management.

One concern expressed by Director Martin was with the very long amount of time that the Church League had been in control of the ballfields they’d invested a lot in the complex. Parks Department Director Reinert clarified that it has always been and will continue to be in the agreements that any improvements made to the facility that are fixed to it ( buildings, turf, lights,etc)are property of the city and will be left behind and anything that can be carried out (mowers, sports equipment, etc) are property of the organization and may be taken with them when their contract expires.

Director Catsavis asked what would happen to the Church League teams if the new organization took over. Parks Director Reinert expressed that that’s not really the City’s concern. Reinert also discussed that Fort Smith Youth Baseball and Softball was very willing to work with other organizations that want to use the park. A representative from Fort Smith Youth Baseball and Softball confirmed that willingness to cooperate. Reinert mentioned that that openness to working with other organizations was one of the things seen as an advantage in the selection process. The selection panel felt that the Church League was less receptive to that. Reinert also stated that the new organization was very receptive to making sure that when there are not tournaments or other scheduled events that the fields are accessible to the public. There have been complaints that some members of the public have felt they are not able to use it and as a public park it’s a priority for the Parks Department to remedy that.

Director Settle inquired as to whether the Southside Mavericks use of the ballfields would be disrupted by this proposed change. Reinert confirmed that the agreement already in place with the Mavericks was solid and the change would not be an issue.

It was discussed that another perceived advantage to the Fort Smith Youth Baseball and Softball is that they have promised a much greater embracing of softball at the fields.