Officials in Fort Smith say a drop in sales tax revenue is continuing, so the city will have to continue with belt-tightening measures.
City officials say they are looking at a 4 percent cut in general fund spending. The budget woes are expected to affect the city's largest departments - police, fire and parks.
City Administrator Ray Gosack says spending reductions include equipment purchases and employee training.
Gosack says no additional cuts are expected in the 2013 budget year but the cuts could be extended into 2014 if revenues don't improve.
Consumer spending has been down in the city, which has reduced sales tax revenue.