Fort Smith board approves market adjustments to pay, setting effective date for mid‑April

The Fort Smith Board of Directors on March 4 approved ordinances to update city employee pay schedules and to amend the 2025 operating budget to fund market adjustments for non‑uniform employees and the uniformed fire department.

Rick Wally, identified in the meeting as the city’s chief human resources officer, told the board the proposal includes an across‑the‑board market adjustment of 3.5% for non‑uniformed employees and an approximate 5% increase for the uniformed fire department. He said the effective date for the changes will align with the beginning of the 2025 compensation year, April 14, 2025.

Board members offered support for the proposal while raising questions about broader fiscal impacts. Director Neil Martin asked how adjustments could affect the water and sewer fund’s debt service coverage ratio and asked for options that could protect employees while mitigating impacts on rates. Administration said some reallocation options would be discussed at a meeting in two weeks; the city’s finance staff estimated the carryover and reallocation steps could return several million dollars to the water and sewer fund if the board pursues them.

The board moved to adopt the related ordinance amending the operating budget (item 4B) and authorized appropriation of funds for the market adjustments; the roll call for item 4B recorded unanimous approval, 7–0. Board members emphasized they want follow‑up analysis of operational cost impacts and the effect on utility rates.

Vote at a glance: Ordinance amending 2025 operating budget to appropriate market adjustment funds — adopted 7–0.