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20977 1 ORDINANCE NO. 20,977 2 3 AN ORDINANCE TO PROVIDE FOR AND TO ADOPT THE 2015 4 BUDGET FOR THE CITY OF LITTLE ROCK, ARKANSAS, FOR THE 5 PERIOD BEGINNING JANUARY 1, 2015, AND ENDING DECEMBER 31, 6 2015; TO APPROPRIATE RESOURCES AND USES FOR EVERY 7 EXPENDITURE ITEM AND FUND; TO DECLARE AN EMERGENCY; 8 AND FOR OTHER PURPOSES. 9 to WHEREAS, Little Rock, Ark., Rev. Code § 2-214 (1988), as amended by mandates that the Board of 11 Directors adopts a budget for the ensuing fiscal year by not later than December 30', and 12 WHEREAS, the Mayor and the City Manager have fulfilled the requirements of Little Rock, Ark., 13 Rev.Code § 2-212(1988),and Little Rock,Ark.,Ordinance No. 19,761 (June 12,2007),and submitted for 14 consideration of the Board of Directors a proposed budget and such other explanatory information as 15 requested by the Board, and 16 WHEREAS,the Board of Directors has reviewed the proposed Fiscal Year 2015 Budget as presented 17 by the Mayor and the City Manager, made certain modifications, and is now of the opinion that based upon 18 the financial information presented to the Board,the following constitutes an appropriate determination of 19 anticipated revenues, expenditures and expenses for fiscal year, 2015, and should be adopted as the 2015 20 Budget for the City of Little Rock, Arkansas, 21 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY 22 OF LITTLE ROCK,ARKANSAS: 23 Section 1. This ordinance shall be known as the FY2015 Budget Ordinance of the City of Little Rock, 24 Arkansas, for the twelve (12)-month period beginning January 1, 2015, and ending December 31, 2015, 25 reflecting estimated resources and uses as set forth below. 26 Section 2. All resources identified within this ordinance herein are estimated and subject to change, 27 and all appropriation uses identified within this ordinance are calculated upon available resources, and are 28 also subject to change. 29 Section 3. Definitions.For purposes of this ordinance, the following terms shall have the following 30 meanings: 31 (A)Board of Directors means the Mayor and members of the Board of Directors of the City of Little 32 Rock, Arkansas. 33 (B) City Clerk means the City Clerk, or designated representative, of the City, or if no one is officially [Page 1 of8l 1 serving in the position, the Acting City Clerk, or designated representative. 2 (C) City Manager, means the City Manager, or designated representative, of the City, or if no one is 3 officially serving in the position,the Acting City Manager,or designated representative,which may 4 include an Acting Assistant City Manager. 5 (D)Director of Finance means the Director of Finance and Treasurer,or designated representative, for 6 the City, or if no one is serving in the position,the Acting Director of Finance and Treasurer. 7 (E) Expenditures means decreases in net financial resources under the current financial resources 8 measurement focus, and pertains to payment of normal operating payments and encumbrances. 9 (F) Expenses mean the cost of doing business in a proprietary organization, and can be either outflows 10 or the using up of assets — cost expiration — such as the depreciation of fixed assets. Within the 11 context of this budget ordinance, "proprietary organization,"or"proprietary fund"refers only to a 12 method of accounting and is not used as any reference to whether the enterprise is conducted in a 13 governmental or proprietary manner, as that term is understood in Arkansas law. All enterprises 14 referred to in this ordinance shall be operated by the City in its governmental capacity. 15 (G)Fund Balance means the difference between assets and liabilities reported in the governmental fund 16 and represents the excess of revenues or expenditures that has accumulated since the inception of 17 the fund. 18 (H)Revenue(s) means: 19 (i) Increases in the net current assets of a Governmental Fund Type from other than expenditure 20 refunds and residual equity transfers,but does not include any general long-term debt proceeds 21 and operating transfers in — which are classified as "other financing sources," unless these 22 constitute a reservation of fund balances for encumbrances carried forward from a prior year 23 and the expenditure for which the fund balance was created has also been carried forward; or, 24 (ii) Increases in the net total assets of a Proprietary Fund Type from other than expense refunds, 25 capital contributions and residual equity transfers, but does not include operating transfer in 26 which are classified separately from revenues, unless these constitute a reservation of fund 27 balances for encumbrances carried forward from a prior year and the expense for which the 28 fund balance was created has also been carried forward. 29 Section 4. Compliance with Existing Laws, Statutes and Ordinances. This ordinance has been 30 prepared in accordance with various Arkansas statutes that deal with municipal fiscal reporting 31 requirements,the Financial Reporting Standards for the City of Little Rock,Arkansas,as approved in Little 32 Rock, Ark., Rev. Code §§ 2-245 to 260.8 (1988), and the standards of the Government Finance Officers 33 Association. [Page 2 of 81 1 Section 5. Fiscal Year 2015 Budget. The following respective amount for every resource and 2 appropriate use is herein set forth as follows: 3 (A)APPROPRIATE OPERATING RESOURCES: 4 General Fund(i) $194,740,211 5 Street 20,050,226 6 Waste Disposal 17,577,000 7 Parking Garages 2,196,750 8 Fleet Services 13,345,076 9 Vehicle Storage Facility 1,382,410 10 TOTAL RESOURCES 5249.291.673 11 (i)General Fund operating resources include the carry-over of$550,000 generated from the unused 12 portion of the 2014 contingency allocation. 13 (B) APPROPRIATE OPERATING USES: 14 General Fund Departments 15 General Administration $28,062,042 16 Board of Directors 342,027 17 Community Programs 423,578 18 City Attorney 1,836,901 19 Municipal Court—Criminal 1,405,790 20 Municipal Court—Environmental 626,782 21 Municipal Court—Traffic 1,248,245 22 Finance 3,204,124 23 Human Resources 1,673,177 24 Office of Information Technology 4,679,784 25 Planning& Development 2,564,192 26 Housing&Neighborhood Programs 5,790,389 27 Public Works 1,159,922 28 Parks and Recreation 9,958,932 29 RiverMarket 1,209,164 30 Golf 2,308,904 31 Fitness and Aquatics 901,127 32 Zoo 6,733,727 33 Fire 46,232,253 34 Police 68,885,072 [Page 3 of 8] 1 Transfer to Street Fund 1,082,000 2 Future Little Rock, Special Projects, PIT, Grant Match 9,412,079 3 Contingency 1,000,000 4 Vacancy Allocation (Authorized Unfilled Positions) (6.000.000) 5 TOTAL GENERAL FUND $194,740,211 6 Street Fund 20,050,226 7 Solid Waste 17,127,479 8 Parking Garages 2,196,750 9 Fleet Services 13,294,275 10 Vehicle Storage Facility 1.359,144 11 TOTAL USES $248.768.085 12 Section 6. Outside Agency Contributions. The appropriation for General Administration operating 13 uses in Section 4 above includes the following amounts for various entities with which the City contracts 14 for public services,or in which the City has an ownership interest: 15 Central Arkansas Transit Authority $8,686,869 16 Pulaski County Regional Detention Center 1,063,313 17 Arkansas Arts Center 550,000 18 Museum of Discovery 200,000 19 Chamber of Commerce 200,000 20 Metroplan 178,042 21 Downtown Partnership 175,000 22 PAGIS 135,800 23 First Tee 191,500 24 Metro Little Rock Alliance 100,000 25 Pulaski County Health Unit 56,100 26 Saint Vincent's 25,381 27 City Beautiful 2.500 28 TOTAL OUTSIDE AGENCY CONTRIBUTIONS 511.564.505 29 Section 7. PILOT Payments. In accordance with Act 497 of 1981, Act 713 of 1991, and Act 1629 30 of 2001, of the Arkansas General Assembly, the Director of Finance shall make appropriate payments to 31 the Little Rock School District, the Pulaski County Special School District, and Pulaski County from any 32 affected payment-in-lieu of taxes (PILOT) made to the City by a company for which an Act 9 Industrial 33 Development Bonds was issued; it is estimated that the gross amount of these resources for FY2015 is One 34 Million, Six Hundred Eighteen Thousand, Six Hundred Sixty-Five Dollars($1,618,665.00). [Page 4 of 81 1 Section 8. Appropriation for the Compensation of Elected Officials. This budget contains a personnel 2 appropriation for the Mayor and the Members of the Board of Directors as follows: 3 (A)Annual compensation of the Mayor is One Hundred Sixty Thousand Dollars ($160,000.00), and 4 such other amounts as may from time to time be approved during the time this ordinance is 5 effective; 6 (B) Annual compensation for each member of the Board of Directors is Eighteen Thousand Dollars 7 ($18,000.00)plus an annual stipend of Three Thousand Dollars($3,000.00); 8 (C) In addition to these amounts, there are expenditures noted within this ordinance which document 9 the amounts paid for Mayor and Board member expenses and benefits. 10 Section 9. 2015 Employee Bonuses. This budget contains an appropriation for a one(1)-time bonus 11 for full-time employees. Employees hired prior to January 1, 2014, are immediately eligible to receive the 12 bonus. Non-uniform employees with less than one(1)-year of service are eligible to receive the bonus upon 13 successful completion of the probationary period. Uniform employees with less than one(1)-year of service 14 are eligible to receive the bonus upon successful completion of the recruit academy. The bonuses will be 15 given at three(3) levels depending upon the salary of the employee, as depicted below: 16 (A) A One Thousand Dollar($1,000.00)bonus for employees with a salary of Forty Thousand Dollars 17 ($40,000.00)or below; 18 (B) A Seven Hundred Fifty Dollar ($750.00) bonus for employees with a salary between Forty 19 Thousand, One Dollars($40,001.00)and Sixty Thousand Dollars($60,000.00); and 20 (C) A Five Hundred Dollar ($500.00) bonus for employees with a salary of Sixty Thousand, One 21 Dollars($60,001.00)and above. 22 Employees excluded from the bonus program are the City Manager, Assistant City Manager, Department 23 Directors and Assistant Department Directors. 24 Section 10.Definition of Significant Variance. 25 (A) In order to prepare this budget it has been necessary to estimate the amount of revenue or other 26 resources that the City will have available to it in fiscal year 2015, and the cost of the various 27 expenditures and expenses that the City will incur during this period. 28 (B) To assure the efficient and responsible operation of the City, and the maintenance of its various 29 programs and facilities, it is important for the Board of Directors to be timely advised of a 30 significant variance in revenues, or expenditures,during the course of the fiscal year. Further, it is 31 important for the Board of Directors, the City Manager and the Director of Finance,to agree as to 32 what constitutes a"significant variance"of these items. 33 (C) It is further necessary to have a definition of"significant variance" that can be reviewed on an 34 annual basis as a part of the City budget process, and which can best reflect the point at which the [Page 5of81 1 Board of Directors believes it should be notified that such a change of circumstances has occurred 2 in relation to any expenditure, expense, fund balance, revenue, or resource. 3 (D)For Fiscal Year 2015,a"significant variance"shall be deemed to have occurred if, during any 4 reporting period, there has been an increase or decrease from the budgeted amount for the period 5 covered by a Monthly Financial Report, or a Quarterly Fund Balance Report that is: 6 (i) Greater than 5%of the amount anticipated for that item for the period of time covered; 7 and, 8 (ii) More than Fifty Thousand Dollars ($50,000.00) from the amount anticipated for that 9 item for the period of time covered. 10 Section 11. Timeline for Department of Finance. The timeline for events related to the timely 11 preparation of reports and statements to the Board of Directors for Fiscal Year 2015 is attached as Exhibit 12 A to this ordinance. 13 Section 12. Severability. In the event any title, subtitle, section, subsection, subdivision, paragraph, 14 subparagraph, item,sentence,clause,phrase,or work of this ordinance is declared or adjudged to be invalid 15 or unconstitutional, such declaration or adjudication shall not affect the remaining portions of the ordinance 16 which shall remain in full force and effect as if the portion so declared or adjudged invalid or 17 unconstitutional was not originally a part of this ordinance. 18 Section 13. Repealer. All ordinances and resolutions, including but not limited to Little Rock, Ark., 19 Ordinance No. 20,829 (December 17, 2013)("the 2014 Budget Ordinance"), and any other ordinances or 20 resolutions that relate to financial reporting within the City, are hereby repealed to the extent of such 21 inconsistency. 22 Section 14. Emergency Clause. It is imperative that a budget ordinance for the ensuing fiscal year 23 and calendar year be passed prior to the end of the current calendar year in order to assure the continued 24 provision of City services, operations, and facilities; such continuation is essential to the public health, 25 safety and welfare, an emergency is, therefore, declared to exist and this ordinance, with the exception of 26 Section 8 which deals with the compensation of the Mayor and Members of the Board of Directors, shall 27 be in full force and effect on January 1, 2015, and the various City departments shall operate immediately 28 upon its passage, and for purposes of record keeping and otherwise, as if it were in full force and effect 29 from and after the date of its passage. 30 PASSED: December 16,2014 31 APPROVED• 32lor!. 33 .4 /Uhl/A / 34 8;u. .n I a ey,City Clerk Mark Stodola,Mayor 35 [Page 6 of 81 1 APPROVED AS TO LEGAL FORM: 2 3 .c; -4149.044./i') : 4 Thomas M. Carpenter, ty A rn 5 // 6 // 7 // 8 // 9 // 10 // 11 // 12 // 13 // 14 // 15 // 16 // 17 // 18 // 19 // 20 // 21 // 22 // 23 // 24 // 25 // 26 // 27 // 28 // 29 // 30 // 31 // 32 // 33 // 34 // 35 // I 1Page 7 of 81 1 EXHIBIT A: FY 2015 BUDGET ORDINANCE FOR THE CITY OF LITTLE ROCK.ARKANSAS 2 3 [NOTE: The Board of Directors enacted financial reporting standards for the City. Little Rock, 4 Ark.,Rev. Code §§ 2-245 to 260.8 (1988) Section 2-260 this ordinance requires that as a part of the 5 annual budget process the Board of Directors set a timeline for action by the Department of Finance 6 to assure the timely preparation of financial reports. This timeline is to be adopted upon 7 recommendation of the City Manager after consultation with the Director of Finance and the various 8 financial institutions the City uses. This timeline is to be reviewed each year to assure that it sets 9 reasonable expectations for City Staff, but at the same time,assures the preparation and publication 10 of reports to the Board of Directors as quickly as possible. Reports to the Board of Directors are 11 based upon certain events after the month-end close. The month-end close is defined as the fifteenth 12 (15th) business day after the end of the previous calendar month.For FY 2015 the calendar of events 13 is as follows: 14 15 CALENDAR OF EVENTS RELATED TO TIMELY PREPARATION OF CITY FINANCIAL 16 REPORTS 17 18 EVENT WORKING DAY 19 (after the end of the calendar month) 20 Department notification of deposits submitted to accounting 3 21 City obtains monthly bank statement 1 22 Department processes bank files to produce combined and payroll 5 23 outstanding check lists 24 City obtains monthly investment statement 7 25 Department reconciles book balance and bank statements for all bank accounts 9 26 Department reconciles book balance and investment balances 11 27 Department finalizes and enters all remaining journal entries 14 28 Department reviews and corrects work to date 15 29 Department conducts final review of information for reports 16 30 Department processes computer system reports (month-end close) 17 31 Department completes preparation of monthly reports 22 32 City Manager and Finance Director present monthly report to Board of Directors 33 City Manager has monthly report posted in City website following Board presentation IPage 8 of 81