Hot Springs Board Reviews $1.82M Utility Asset Transfer, $821K Fire Engine Purchase, and Fire Department Restructuring

At its March 26 agenda meeting, the Hot Springs Board of Directors reviewed — but did not vote on — four substantive resolutions covering $1,821,000 in water and wastewater asset additions, an $821,376.99 fire engine purchase, a $93,486.99 annual personnel cost increase for fire department restructuring, and an airport lease generating $651.25 per month in city revenue.

Hot Springs Board of Directors Agenda Meeting March 26, 2024 Confidence: Medium Independent — not affiliated with the City of Hot Springs

Published: May 17, 2026 · Last updated: May 17, 2026

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The short version

The Board reviewed a resolution to add 16 developer-built water and wastewater infrastructure projects, totaling $1,821,000, to the city's fixed asset register — a routine accounting step, not a new expenditure.
The city is proposing to purchase a custom-built Pierce Manufacturing fire engine for $821,376.99 through a cooperative purchasing contract, paying upfront to save $60,000; the engine will not be delivered until 2026.
The fire department is proposing to restructure its leadership by creating a new at-will assistant chief position and two fire marshal positions, at a net additional annual cost of $93,486.99.
The Board discussed a proposed lease with Physicians Air Transport LLC for airport office space and a hangar at $651.25 per month, with the city providing up to $4,800 in improvements.
This was an agenda (preview) meeting; no votes were recorded for any item.

By the numbers

Total identified spending

$2,735,864

Votes taken

includes procedural votes

Unanimous votes

Largest single item

$1,821,000

Resolution R-2467 — Water and Wastewater Assets Fixed Asset Register

Emergency / ratification items

Resident questions unanswered

Money approved

Item	Amount	Vendor	Vote	Source
Water and Wastewater Assets Fixed Asset Register (R-2467) budget transfer	$1,821,000	Multiple private developers	No vote taken	`item:2`
Purchase of Pierce Manufacturing Fire Engine (R-2469)	$821,377	Pierce Manufacturing	No vote taken	`item:4`
Fire Department Personnel Authorization Table Amendment (R-2470)	$93,487	—	No vote taken	`item:5`
Total identified spending	$2,735,864

Major decisions

Water and wastewater assets added to city fixed asset register (R-2467)

Item: Proposed resolution to formally add 16 water and wastewater infrastructure projects, built by private developers, into the city's municipal utility fixed asset register — an accounting transfer, not a new purchase.
Vote: No vote taken
Cost: stated value of assets being registered; no new city expenditure
Vendor / responsible: Multiple private developers
Discussion level: Brief Brief presentation
Resident impact: Developers who build subdivisions or extend utilities are required to install water and sewer mains; once complete, those mains transfer to city ownership. This resolution formalizes that transfer for 16 projects, including a $547,000 infrastructure addition associated with a subdivision on Lake Hamilton.
What the Board said or did: City Engineer Gary Carnahan described the process as routine cleanup. Projects range in value from approximately $17,000 to $547,000. No board questions or public comments were recorded.
What remains unclear: The specific locations or names of all 16 projects are not listed individually in the available record beyond the Lake Hamilton subdivision example.
Source: item:2

Airport lease with Physicians Air Transport LLC (R-2468)

Item: Proposed resolution authorizing a lease of 750 square feet of office space and hangar A14 at the Hot Springs airport to Physicians Air Transport LLC for installation of a flight simulator.
Vote: No vote taken
Cost: City would provide up to $4,800 in lease improvements (carpet and paint). Rent income to the city would be $651.25 per month ($531.25 rent plus $120 utilities), reduced to $251.25 per month for the first 12 months while the improvement cost is credited back.
Vendor / responsible: Physicians Air Transport LLC
Discussion level: Brief Brief presentation
Resident impact: A private air transport company would occupy airport hangar and office space and install a flight simulator. The record does not describe public access to the simulator or broader operational changes at the airport.
What the Board said or did: Airport Director Don Rollett outlined the lease terms. The record does not show board questions or public comments on this item.
What remains unclear: The record does not show how the $651.25 monthly rate was determined or whether it was benchmarked against comparable airport lease rates. The intended use of the flight simulator beyond Physicians Air Transport's own training is not described.
Source: item:3

Purchase of Pierce Manufacturing fire engine (R-2469)

Item: Proposed resolution approving the purchase of a 2024-spec custom-built Pierce Manufacturing Sabre fire engine for $821,376.99 through the Sourcewell cooperative purchasing contract.
Vote: No vote taken
Cost: $821,376.99; paid upfront. Fire Chief Ed Davis stated the city would save $60,000 by paying upfront rather than financing.
Vendor / responsible: Pierce Manufacturing
Discussion level: Extended Significant debate, public comment, or multiple speakers
Resident impact: The new engine, a 2,000-gallon-per-minute pumper, would be assigned to the central fire station in downtown Hot Springs. It would replace a 24-year-old pumper, which would move to reserve status. A 12-year-old engine currently held in reserve would move to frontline duty. Delivery is expected in approximately 28 months (2026).
What the Board said or did: Directors asked about the 28-month delivery timeline. Director Garcia asked whether the upfront payment was part of short-term financing and whether the $60,000 savings exceeded any interest costs. Another director asked about the historical cost of the engine being replaced. Fire Chief Davis provided historical cost context: pumpers cost $79,000 in 1979, $250,000 in 1989, and $650,000 four years ago. He noted this purchase is expected to be the last below $1 million as manufacturing reshores and prices rise.
What remains unclear: The record does not show a detailed breakdown of how the $60,000 upfront-payment savings was calculated or whether a financing cost comparison was provided to the Board. The source of funds for the $821,376.99 purchase is not specified in the available record.
Source: item:4

Fire department personnel restructuring (R-2470)

Item: Proposed resolution amending the 2024 personnel authorization table to create one new at-will assistant chief position and two fire marshal positions, while eliminating two existing higher-paid positions — resulting in a net annual cost increase of $93,486.99.
Vote: No vote taken
Cost: Net annual personnel cost increase of $93,486.99
Vendor / responsible: Fire Chief Ed Davis
Discussion level: Extended Significant debate, public comment, or multiple speakers
Resident impact: The restructuring is framed as a succession plan ahead of Fire Chief Davis's expected retirement within 3.5 years. It would redistribute responsibilities currently held by Fire Marshal Tom Broughton, who the chief said has taken on duties beyond the normal fire marshal scope. The assistant chief position would be an at-will role, not subject to civil service testing. The two fire marshal positions would be filled through standard civil service testing on a 70-30 scoring split.
What the Board said or did: Director Webb referenced a prior work session on the fire station south project and the succession plan, and asked which positions would use traditional hiring. Other directors asked how common at-will assistant chief positions are in other fire departments and questioned why the position would not go through standard competitive testing. A director also raised concern that the process could effectively be limited to a single recommended candidate, which the chief addressed by stating the assistant chief position would be open to external applicants. The city attorney clarified that the assistant chief exemption from civil service mirrors the existing assistant police chief arrangement.
What remains unclear: The record does not show how many other Arkansas fire departments use an at-will model for assistant chief positions, or what the salary range for the new assistant chief position would be compared to the positions being eliminated.
Source: item:5

Locations affected

Hot Springs municipal water and sewer system (multiple locations)

Multiple locations including Lake Hamilton subdivision

16 developer-built utility extensions added to the city's fixed asset register, including a $547,000 project associated with a Lake Hamilton subdivision.

Status: Scheduled
Hot Springs Memorial Field Airport, Hangar A14

Hot Springs airport

Proposed lease to Physicians Air Transport LLC for office space and flight simulator installation.

Status: Planned
Central Fire Station

Downtown Hot Springs

New Pierce Manufacturing fire engine assigned here upon delivery, replacing a 24-year-old pumper.

Status: Planned

Watch list

Open follow-up issues we'll check on in future briefings.

Fire department assistant chief hiring process

Open

The Board raised questions about whether the at-will, non-civil-service structure is appropriate for the new assistant chief position. Fire Chief Ed Davis stated the position would be open to external applicants. The record does not show when the position will be posted or what criteria will govern selection.

Why it matters: The hiring structure deviates from standard civil service testing and could affect recruitment, transparency, and continuity during the fire department succession plan.
Next check: Monitor posting timeline and selection criteria when the assistant chief position is advertised.

Fire engine purchase funding and delivery timeline

Open

The $821,376.99 fire engine purchase involves a 28-month delivery window and an upfront payment structure. The source of funds and the full financing-versus-upfront-payment analysis were not resolved in discussion.

Why it matters: The upfront payment of $821,376.99 has significant cash-flow implications, and the claimed $60,000 savings require documentation and comparison to any financing costs the city may incur.
Next check: Request detailed financing analysis and payment source documentation when the resolution is voted on at a subsequent meeting.

Water and wastewater asset register additions

Open

The resolution covers 16 projects; only the Lake Hamilton subdivision example was described in detail. A full project list would clarify which neighborhoods or areas are affected.

Why it matters: Understanding the scope and geographic distribution of infrastructure additions helps residents assess growth patterns and service availability in different parts of the city.
Next check: Request full project list when R-2467 is voted on at a subsequent meeting.

Source notes

This briefing is based on the public records below. Every claim above can be traced back to one or more of these sources.

video: Board of Directors Agenda Meeting Video, March 26, 2024
agenda: Agenda Item 1 — Board and Commission Appointments
agenda: Agenda Item 2 — Resolution R-2467, Water and Wastewater Assets Fixed Asset Register
agenda: Agenda Item 3 — Resolution R-2468, Airport Lease with Physicians Air Transport LLC
agenda: Agenda Item 4 — Resolution R-2469, Pierce Manufacturing Fire Engine Purchase
agenda: Agenda Item 5 — Resolution R-2470, Fire Department Personnel Authorization Table Amendment

Confidence: Medium

Transcript and public-comment capture available; no formal votes were recorded. All figures drawn from agenda descriptions and staff presentations as captured in the transcript.

How we know this

We do not invent facts.
We cite source records.
We distinguish what happened from what remains unclear.
We use neutral language.
We correct errors when found. See corrections.