Fort Smith to divert money for charities to pensions

FORT SMITH -- Charitable and civic organizations in Fort Smith that have received financial help from the city in the past will see that money go to fire and police pensions next year instead.

The city directors passed a resolution 4-3 on Tuesday not to include in the 2016 budget the $145,000 the city has been giving to outside agencies for years. That money will go toward an effort to save the city's Local Police and Fire Retirement System from running out of money by 2021.

City directors have been told they need to come up with $600,000 for the remainder of this year and $1.2 million a year thereafter to balance the money the city puts into pension program with the money it pays out.

Voting against the resolution were City Directors Andre Good, George Catsavis and Don Hutchings.

In arguing to maintain the funding, Hutchings read from a city record that said many organizations were able to stretch the public funds better than the city.

He said he would rather see funding cut from city postage, advertising, office supply and travel budgets before eliminating money to groups like the Children's Emergency Shelter, the local food bank, Cancer Support House, Community Clearing House and the Good Samaritan Clinic.

Good said many of the 26 organizations losing funding provide services to low and moderate income residents. And many of the organizations use the city's stipend as matching funds for government grants.

Director Mike Lorenz, who proposed cutting the outside-agency funding, said the amount the groups received from the city was small and was only one of several sources of funding they receive.

NW News on 07/23/2015

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