FORT SMITH, Ark. — The Fort Smith Board of Directors on Tuesday (Sept. 6) voted 7-0 to approve a settlement with the city of Barling in which that city will pay $325,000 to cover water contract obligations dating back to 2002. Fort Smith initially alleged that Barling owed $1.1 million.
The contract between the two cities set a minimum purchase of 587,000 gallons of water a day. If the city of Barling did not acquire that much per day, it would be charged a “true up” to pay the difference between what was purchased and the minimum requirement. The contract required the city of Fort Smith to invoice Barling in a separate invoice for the true up charge.
In 2017 when the city of Fort Smith was looking into grant opportunities for the Chaffee Crossing area of Fort Smith, it was discovered because of the contract that Barling owed Fort Smith a little over $1.1 million for water, Fort Smith City Administrator Carl Geffken said in November 2018.
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