FORT SMITH, Ark. — Update: The Mayoral compensation increase motion passed unanimously, and the motion to increase salary compensation for the board passed with five in favor and two opposed.
The Fort Smith Board of Directors and the mayor will be getting a salary increase. The Board of Directors voted on the salary increase on Tuesday, Dec. 13.
"It's been 55 years, we had gas 20 cents a gallon back then," said George Catsavis, board member for Ward 4.
This would be the board's first pay increase since 1967. If approved, the pay increase of 680 percent, plus a car allowance increase will go into effect this upcoming January.
Catsavis is pushing for what he calls a cost of living increase—"Just to pay the basics."
It's been a topic of discussion since November 2022.
"The proposal will raise the salary of the Fort Smith Board of Directors from $1,000 a year to $7,800 a year," said Position 7 and At-Large Board of Director Neal Martin.
This will increase the Board of Directors' monthly pay from around $80 a month to $650 a month.
"Even with this small little increase, we're still behind," Catsavis said. "Little Rock pays theirs $2,000 a month. Fayetteville, Springdale—about $1,500-$1,700 a month."
Catsavis went on to say, "I felt that after 55 years, it was time that we should be compensated. It'll attract more people to run for office, and maybe even create a diverse board of minorities. This is a great opportunity for everybody."
"Now, am I for it?" Martin asked. "I've gone back and forth, I think I am for it."
Martin says the money would come out of the city's general fund.
"The general fund is funded by sales tax and property tax," he said.
There’s no plan to increase taxes to pay for the raises. The directors 5NEWS spoke with say they are open to hearing from the public. But ultimately, the decision will be left up to the directors and not the voters.
"I think it will be a great idea. However," Martin said about the idea of letting the vote be left up to the people. "It's $30,000 just to hold a vote in the city of Fort Smith."
Vice Mayor Jarred Rego posted on Facebook last night, saying he believes the process should be handled in a better way, including suggesting the formation of a “citizen evaluation committee” to review the board’s work and offer proposals about any possible salary adjustments.
Rego said at the hearing on Tuesday, "I am opposed to this, I remain opposed to this. The citizens hired me at a $1,000-a-year salary, and that is the salary I'm going to draw for the last two years of my term. I'll be donating the balance, about $567 a month to different charities."
The board also voted on a salary increase for the mayor. It will be the first pay increase since 1998, raising the pay from $10,000 to $30,000 a year. They will also discuss the city's operating budget for the fiscal 2023 year.
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