19459I
2
ORDINANCE NO_ 19,459-
3 AN ORDINANCE TO PROVIDE FOR AND TO ADOPT THE 2006 BUDGET FOR THE CITY OF
4 LITTLE ROCK FOR THE PERIOD BEGINNING JANUARY 1, 2006 AND ENDING DECEMBER
5 31, 2006; TO APPROPRIATE RESOURCES AND USES FOR EVERY EXPENDITURE ITEM AND
6 FUND; TO DECLARE AN EMERGENCY AND FOR OTHER PURPOSES.
7
8 WHEREAS, Little Rock, Ark., Rev. Code § 2 -214 (1988) mandates that the Board of Directors
9 adopt a budget for the ensuing fiscal year by not later than December 30, and
10 WHEREAS, the City Manager has fulfilled the requirements of Little Rock, Ark., Rev. Code §
11 2 -212 (1988), and submitted for consideration of the Board of Directors a proposed budget
12 and such other explanatory information as requested by the Board, and
13 WHEREAS, the Board of Directors has reviewed the proposed Fiscal Year 2006 budget as
14 presented by the City Manager, made certain modifications, and is now of the opinion that
15 based upon the financial information presented to the Board, the following constitutes an ap-
16 propriate determination of anticipated revenues, expenditures and expenses for fiscal year,
17 2006, and should be adopted as the 2006 Budget for the City of Little Rock, Arkansas,
18 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE
19 ROCK, ARKANSAS:
20 Section 1. This Ordinance shall be known as the FY2006 Budget Ordinance of the City of
21 Little Rock, Arkansas for the twelve -month period beginning January 1, 2006 and ending De-
22 cember 31, 2006, reflecting estimated resources and uses as set forth below. All resources
23 herein are estimated and subject to change and all appropriation uses are calculated upon
24 available resources, and are also subject to change.
25 Section 2. Definitions. For purposes of this ordinance, the following terms shall have the
26 following meanings:
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Ordinance
2006 City Budget
1 (A) Board of Directors means the Mayor and members of the Board of Directors of the
2 City of Little Rock, Arkansas.
3 (B) City Clerk means the City Clerk, or designated representative, of the City, or if no
4 one is officially serving in the position, the Acting City Clerk, or designated repre-
5 sentative.
6 (C) City Manager, means the City Manager, or designated representative, of the City, or
7 if no one is officially serving in the position, the Acting City Manager, or designated
8 representative, which may include an Acting Assistant City Manager.
9 (D) Director of Finance means the Director of Finance and Treasurer, or designated rep-
10 resentative, for the City, or if no one is serving in the position, the Acting Director of
11 Finance and Treasurer.
12 (E) Expenditures means decreases in net financial resources under the current financial
13 resources measurement focus, and pertains to payment of normal operating pay -
14 ments and encumbrances.
15 (F) Expenses mean the cost of doing business in a proprietary organization, and can be
16 either outflows or the using up of assets - cost expiration - such as the depreciation
17 of fixed assets. Within the context of this budget ordinance, "proprietary organiza-
18 tion," or "proprietary fund" refers only to a method of accounting and is not used as
19 any reference to whether the enterprise is conducted in a governmental or proprie-
20 tary manner, as that term is understood in Arkansas law. All enterprises referred to
21 in this ordinance shall be operated by the City in its governmental capacity.
22 (G) Fund Balance means the difference between assets and liabilities reported in the
23 governmental fund and represents the excess of revenues or expenditures that has
24 accumulated since the inception of the fund.
25 (H) Revenue(s) means: (1) Increases in the net current assets of a Governmental Fund
26 Type from other than expenditure refunds and residual equity transfers, but does
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Ordinance
2006 City Budget
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not include any general long -term debt proceeds and operating transfers in - which
are classified as "other financing sources," unless these constitute a reservation of
fund balances for encumbrances carried forward from a prior year and the expendi-
ture for which the fund balance was created has also been carried forward; or, (2) in-
creases in the net total assets of a Proprietary Fund Type from other than expense
refunds, capital contributions and residual equity transfers, but does not include op-
erating transfer in which are classified separately from revenues, unless these con-
stitute a reservation of fund balances for encumbrances carried forward from a prior
year and the expense for which the fund balance was created has also been carried
forward.
Section 3. Compliance with Existing Laws, Statutes and Ordinances. This ordinance has
been prepared in accordance with various Arkansas statutes that deal with municipal fiscal re-
porting requirements, the Financial Reporting Standards for the City of Little Rock, Arkansas, as
approved in Little Rock, Ark., Ordinance No. 18,605 (December 18, 2001), and the standards of
the Government Finance Officer's Association.
Section 4. Fiscal Year 2006 Budget. The following respective amount for every resource
and appropriate use is herein set forth as follows:
(A) APPROPRIATE OPERATING RESOURCES:
General Fund $119,666,468
Zoo 4,340,263
Golf 2,777,791
War Memorial Fitness Center 1,089,840
Concessions 1 37,1 1 5
Rivermarket 849,775
Waste Disposal 15,138,671
Street 14,203,204
Ordinance
2006 City Budget
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Parking Garages
1,985,536
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Fleet Services
8,048,617
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Vehicle Storage Facility
1,635,119
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IOTAL RESOURCES
$169,8 �g9
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(B) APPROPRIATE OPERATING USES:
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General Fund Departments
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General Administration, City Clerk, and
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Racial and Cultural Diversity
$ 17,845,547
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Mayor and Board of Directors
287,067
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City Manager
817,089
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Community Programs
324,277
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City Attorney
1,325,745
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Cable TV
193,287
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Municipal Court - Criminal
1,110,877
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Municipal Court - Environmental
438,800
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Municipal Court - Traffic
1,082,656
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Finance
2,406,1 14
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Human Resources
1,209,447
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Office of Information Technology
2,693,876
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Planning & Development
2,067,232
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Housing & Neighborhood Programs
3,819,601
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Public Works
1,229,344
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Parks
6,562,138
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Fire27,624, 507
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Police
43,891,822
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Parks /Zoo /Rivermarket /Concessions
3,640,738
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Ordinance
2006 City Budget
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Restricted Reserve and Contingency
1,355,000
Transfer to Street Fund
443,500
Future Little Rock, Special Projects, PIT
3,773,500
Vacancy Reductions
(4,506,106)
TOTAL GENERAL FUND
$119,636,058
Zoo
4,254,371
Golf
2,759,921
War Memorial Fitness Center
1,073,744
Concessions
121,862
Rivermarket
842,648
Solid Waste
15,921,707
Street Fund
14,742,1 58
Parking Garages
2,103,128
Fleet Services
8,002,388
Vehicle Storage Facility
1,580,404
TOTAL USES
t i 7i n:zsz -4szo
Section 5. P/LOTPayments to Area Schools. In accordance with Act 497 of 1981, Act 713 of
1991, and Act 1629 of 2001, of the Arkansas General Assembly, the Director of Finance shall
make appropriate payments to the Little Rock School District, the Pulaski County Special School
District, and Pulaski County from any affected payment -in -lieu of taxes (PILOT) made to the
City by a company for which an Act 9 Industrial Development Bonds was issued; it is estimated
that the amount of these resources for FY2006 is three hundred fourteen thousand one hun-
dred and three dollars ($314,103).
Section 6. Creation of Restricted Reserve Fund. The Board of Directors mandates the crea-
tion of a Restricted Reserve Fund for the General Fund and, further, directs that deposits to the
Ordinance
2006 City Budget
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1 Restricted Reserve Fund during Fiscal Year 2006 shall total not less than five hundred thousand
2 dollars ($500,000).
3 Section 7. Definition of Significant Variance.
4 (A) In order to prepare this budget it has been necessary to estimate the amount of reve-
5 nue or other resources that the City will have available to it in fiscal year 2006, and the cost of
6 the various expenditures and expenses that the City will incur during this period.
7 (B) To assure the efficient and responsible operation of the City, and the maintenance of its
8 various programs and facilities, it is important for the Board of Directors to be timely advised of
9 an significant variance in revenues, or expenditures, during the course of the fiscal year. Fur -
10 ther, it is important for the Board of Directors, the City Manager and the Director of Finance, to
11 agree as to what constitutes a "significant variance" of these items.
12 (C) It is further necessary to have a definition of "significant variance" that can be reviewed
13 on an annual basis as a part of the City budget process, and which can best reflect the point at
14 which the Board of Directors believes it should be notified that such a change of circumstances
15 has occurred in relation to any expenditure, expense, fund balance, revenue, or resource.
16 (D) For Fiscal Year 2006, a "significant variance" shall be deemed to have occurred if, during
17 any reporting period, there has been an increase or decrease from the budgeted amount for the
18 period covered by a Monthly Financial Report, or a Quarterly Fund Balance Report that is:
19 (1) Greater than five percent (5 %) of the amount anticipated for that item for the period
20 of time covered; and,
21 (2) More than fifty thousand dollars ($50,000) from the amount anticipated for that item
22 for the period of time covered.
23 Section 8. Timeline for Department of Finance. The timeline for events related to the timely
24 preparation of reports and statements to the Board of Directors for fiscal year 2006 is attached
25 as Exhibit A to this ordinance.
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Ordinance
2006 City Budget
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Section 9. Severabi/ity. In the event any title, subtitle, section, subsection, subdivision,
paragraph, subparagraph, item, sentence, clause, phrase, or work of this ordinance is declared
or adjudged to be invalid or unconstitutional, such declaration or adjudication shall not affect
the remaining portions of the ordinance which shall remain in full force and effect as if the por-
tion so declared or adjudged invalid or unconstitutional was not originally a part of this ordi-
nance.
Section 10. Repealer. All ordinances and resolutions, including but not limited to Little
Rock, Ark., Ordinance No. 19,249 (December 14, 2004) ( "the 2005 Budget ordinance "), and any
other ordinances or resolutions that relate to financial reporting within the City, are hereby re-
pealed to the extent of such inconsistency.
Section 11. Emergency Clause. It is imperative that a budget ordinance for the ensuing fis-
cal year and calendar year be passed prior to the end of the current calendar year in order to
assure the continued provision of City services, operations, and facilities; such continuation is
essential to the public health, safety and welfare, an emergency is, therefore, declared to exist
and this ordinance shall be in full force and effect on January 1, 2006, and the various City de-
partments shall operate immediately upon its passage, and for purposes of record keeping and
otherwise, as if it were in full force and effect from and after the date of its passage.
PASSED: December_1 -1,2005
ATTEST:
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21 - - ti
22 Na cy Wood, y Clerk
23 APPROVED AS TO LEGAL FORM:
24
25 - -- �,_' - - -- -- - - --
26 Thomas M. Carpenter, Cit Attorney
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Ordinance
2006 City Budget
APPROVED:
C�\
Ji a yailey, Mayor
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[NOTE: The Board of Directors recently enacted financial reporting standards for the City. Little
Rock, Ark., Ordinance No. 18,675 (December 18, 2001). Section 12 this ordinance requires
that as a part of the annual budget process the Board of Directors set a timeline for action by
the Department of Finance to assure the timely preparation of financial reports. This timeline is
to be adopted upon recommendation of the City Manager after consultation with the Director of
Finance and the various financial institutions the City uses. This timeline is to be reviewed each
year to assure that it sets reasonable expectations for City staff, but at the same time, assures
the preparation and publication of reports to the Board of Directors as quickly as possible. Re-
ports to the Board of Directors are based upon certain events after the month -end close. The
month -end close is defined as the fifteenth (15th) business day after the end of the previous
calendar month. For FY 2006 the calendar of events is as follows:
CALENDAR OF EVENTS RELATED TO TIMELY PREPARATION OF CITY FINANCIAL REPORTS
EVENT WORKING DAY
(after the end of the calendar month)
Department notification of deposits submitted to accounting 3
City obtains monthly bank statement 4
Department processes bank files to produce combined and payroll outstanding check lists 5
City obtains monthly investment statement 7
Department reconciles book balance and bank statements for all bank accounts 9
Department reconciles book balance and investment balances 1 1
Department finalizes and enters all remaining journal entries 12
Department reviews and corrects work to date 13
Department conducts final review of information for reports 14
Department processes computer system reports (month -end close) 15
Department completes preparation of monthly reports 20
City Manager and Finance Director publish monthly report to Board of Directors 21
City Manager has monthly report posted in City website 21
Ordinance
2006 City Budget
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