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Officials debate water sales pricing and propose 2025 budget reallocation for review
Summary
Councilors and staff discussed city water sales to neighboring jurisdictions, consultant findings that rate changes affect local customers, and a proposal to reallocate parts of the 2025 budget pending analysis of debt‑service impacts.
City directors and staff discussed Fort Smith’s water sales contracts, rate structure and a suggested reallocation of general‑fund dollars at the March 11 study session.
Speakers noted Fort Smith supplies contract customers outside city limits and that recent rate adjustments were intended to account for distribution costs. One presenter said the city cannot raise wholesale contract rates without also affecting city customers, citing consultant work on rate structure.
A council member proposed reallocating portions of the 2025 budget from five departments into the general fund; the motion included a request that staff also prepare a comparable reallocation for the 2024 budget for board review. Directors asked staff to analyze effects on the debt‑service coverage ratio and audit implications before any transfers are finalized.
No formal budget transfers or rate changes were approved during the study session; the board requested staff follow up with numbers and impacts at the next meeting.
