186071 ORDINANCE NO. 18,607
2
3 AN ORDINANCE PROVIDING FOR AND ADOPTING THE 2002 BUDGET
4 FOR THE CITY OF LITTLE ROCK FOR THE PERIOD BEGINNING
5 JANUARY 1, 2002 AND ENDING DECEMBER 31, 2002; APPROPRIATING
6 RESOURCES AND USES FOR EVERY EXPENDITURE ITEM AND FUND;
7 DECLARING AN EMERGENCY AND FOR OTHER PURPOSES.
8
9 WHEREAS, Little Rock, Ark., Rev. Code § 2 -214 (1988) mandates that the Board of
10 Directors adopt a budget for the ensuing fiscal year by not later than December 30, and
11 WHEREAS, the City Manager has fulfilled the requirements of Little Rock, Ark., Rev.
12 Code § 2 -212 (1988), and submitted for consideration of the Board of Directors a proposed budget
13 and such other explanatory information as requested by the Board, and
14 WHEREAS, the Board of Directors has reviewed the proposed Fiscal Year 2002 budget as
15 presented by the City Manager, made certain modifications, and is now of the opinion that based
16 upon the financial information presented to the Board, the following constitutes an appropriate
17 determination of anticipated revenues, expenditures and expenses for fiscal year, 2002, and should
18 be adopted as the 2002 budget for the City of Little Rock, Arkansas,
19 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF
20 THE CITY OF LITTLE ROCK, ARKANSAS:
21 Section 1. This Ordinance shall be known as the FY2002 Budget Ordinance of the City
22 of Little Rock, Arkansas for the twelve -month period beginning January 1, 2002 and ending
23 December 31, 2002, reflecting estimated resources and uses as set forth below. All resources herein
24 are estimated and subject to change and all appropriation uses are calculated upon available
25 resources, and are also subject to change.
26 Section 2. Definitions. For purposes of this ordinance, the following terms shall have
27 the following meanings:
28 (A) Board of Directors means the Mayor and members of the Board of Directors
29 of the City of Little Rock, Arkansas.
[PAGE 1 OF 81
Ordinance
2002 City Budget
• •
1 (B) City Clerk means the City Clerk, or designated representative, of the City, or
2 if no one is officially serving in the position, the Acting City Clerk, or designated
3 representative.
4 (C) City Manager, means the City Manager, or designated representative, of the
5 City, or if no one is officially serving in the position, the Acting City Manager, or designated
6 representative, which may include an Acting Assistant City Manager.
7 (D) Director of Finance means the Director of Finance and Treasurer, or
8 designated representative, for the City, or if no one is serving in the position, the Acting
9 Director of Finance and Treasurer.
10 (E) Expenditures means decreases in net financial resources under the current
11 financial resources measurement focus, and pertains to payment of normal operating
12 payments and encumbrances.
13 (F) Expenses means the cost of doing business in a proprietary organization, and
14 can be either outflows or the using up of assets — cost expiration — such as the depreciation
15 of fixed assets. Within the context of this budget ordinance, "proprietary organization," or
16 "proprietary fund" refers only to a method of accounting and is not used as any reference to
17 whether the enterprise is conducted in a governmental or proprietary manner as that term is
18 understood in Arkansas law. All enterprises referred to in this ordinance shall be operated by
19 the City in its governmental capacity.
20 (G) Fund Balance means the difference between assets and liabilities reported in
21 the governmental fund. The excess of revenue or expenditures that has accumulated since
22 the inception of the fund.
23 (H) Revenue(s) means: (1) Increases in the net current assets of a Governmental
24 Fund Type from other than expenditure refunds and residual equity transfers, but does not
25 include any general long -term debt proceeds and operating transfers in — which are classified
26 as "other financing sources," unless these constitute a reservation of fund balances for
27 encumbrances carried forward from a prior year and the expenditure for which the fund
28 balance was created has also been carried forward; or, (2) Increases in the net total assets of
29 a Proprietary Fund Type from other than expense refunds, capital contributions and residual
[PAGE 2 OF 81
Ordinance
2002 City Budget
[PAGE 3 OF 81
Ordinance
2002 City Budget
0
1
equity transfers, but does not include operating transfer in which are
classified separately
2
from revenues, unless these constitute a reservation of fund balances
for encumbrances
3
carried forward from a prior year and the expense for which the fund balance was created
4
has also been carried forward.
5
Section 3. Compliance with Existing Laws, Statutes and
Ordinances. This
6
ordinance has been prepared in accordance with various Arkansas statutes that deal with municipal
7
fiscal reporting requirements, the Financial Reporting Standards for the
City of Little Rock,
8
Arkansas, as approved in Little Rock, Ark., Ordinance No. 18,605 (December 18, 2001), and the
9
standards of the Government Finance Officer's Association.
10
Section 4. Fiscal Year 2002 Budget. The following respective
amount for every
11
resource and appropriate use is herein set forth as follows:
12
(A) APPROPRIATE OPERATING RESOURCES:
13
General Fund
$108,408,782
14
General Fund Special Projects Fund ($377,157 fund balance)
6,502,185
15
Special Projects Fund (carry forward fund balance)
7,108,141
16
Zoo
3,242,467
17
Golf
2,347,854
18
War Memorial Fitness Center
893,102
19
Concessions
574,348
20
Rivermarket
757,799
21
Waste Disposal
13,493,394
22
Street
13,476,672
23
Fleet Services
6,303,247
24
Im ound
1.368 000
25
TOTAL uF OURCFS
5164 475.9
26
(B) APPROPRIATE OPERATING USES:
27
General Fund Departments
28
General Administration, City Clerk, and
29
Racial and Cultural Diversity
$ 10,653,225
[PAGE 3 OF 81
Ordinance
2002 City Budget
[PAGE 4 OF 81
Ordinance
2002 City Budget
i
1
Mayor & Board of Directors
281,393
2
City Manager
702,101
3
Community Programs
377,278
4
City Attorney
1,306,076
5
Cable TV
142,655
6
Municipal Court — Criminal
1,036,150
7
Municipal Court — Environmental
452,552
8
Municipal Court — Traffic
992,974
9
Finance
2,465,115
10
Human Resources
1,178,746
11
Office of Information Technology
2,675,205
12
Planning & Development
2,211,144
13
Housing & Neighborhood Programs
3,557,728
14
Public Works
1,414,111
15
Parks
6,267,260
16
Fire
22,000,238
17
Police
40,615,244
18
Parks /Zoo/Rivermarket
2,233,907
19
1998 Street Debt Service
1,494,323
20
Transfer to Street Fund
693,500
21
Future Little Rock, Special Projects, PIT
5,102,400
22
Economic Development
902,628
23
Vacancy Reductions
(3,011,4901
24
TOTAL GENERAL FUND
$105,744,463
25
General Fund Special Project Fund
6,502,185
26
Special Projects Fund
7,108,141
27
Zoo
3,242,467
28
Golf
2,347,262
29
War Memorial Fitness Center
1,021,281
[PAGE 4 OF 81
Ordinance
2002 City Budget
1 Concessions 573,065
2 Rivermarket 711,290
3 Waste Disposal 14,712,215
4 Street Fund 13,472,050
5 Fleet Services 6,171,923
6 Impound 1,175,322
7 TOTAL USES 5162 781 664
8 Section 5. PILOT Payments to Area Schools, In accordance with Act 497 of 1981,
9 Act 713 of 1991, and Act 1629 of 2001, of the Arkansas General Assembly, the Director of Finance
10 shall make appropriate payments to the Little Rock School District, the Pulaski County Special
11 School District, and Pulaski County from any affected payment -in -lieu of taxes (PILOT) made to
12 the City by a company for which an Act 9 Industrial Development Bonds was issued; it is estimated
13 that the amount of these resources for FY2002 is two hundred and twenty two thousand dollars
14 ($222,000).
15 Section 6. Creation of Retricted Reserve Fund. The Board of Directors mandates the
16 creation of a reserve fund for the general fund and, further, directs that deposits to the Reserve Fund
17 during Fiscal Year 2002 shall total not less than one million five hundred thousand dollars
18 ($1,500,000).
19 Section 7. Definition of Significant Variance.
20 (A) In order to prepare this budget it has been necessary to estimate the amount of
21 revenue or other resources that the City will have available to it in fiscal year 2002, and the cost of
22 the various expenditures and expenses that the City will incur during this period.
23 (B) To assure the efficient and responsible operation of the City, and the maintenance of
24 its various programs and facilities, it is important for the Board of Directors to be timely advised of
25 a significant variance in revenues, or expenditures, during the course of the fiscal year. Further, it is
26 important for the Board of Directors, the City Manager and the Director of Finance, to agree as to
27 what constitutes a "significant variance" of these items.
28 (C) It is further necessary to have a definition of "significant variance" that can be
29 reviewed on an annual basis as a part of the City budget process, and which can best reflect the
[PAGE 5 OF 81
Ordinance
2002 City Budget
0 0
1 circumstances has occurred in relation to any expenditure, expense, fund balance, revenue, or
2 resource.
3 (D) For Fiscal Year 2002, a "significant variance" shall be deemed -to have occurred if,
4 during any reporting period, there has been an increase or decrease from the budgeted amount for
5 the period covered by a Monthly Financial Report, or a Quarterly Fund Balance Report that is:
6 (1) Greater than five percent (5 %) of the amount anticipated for that item for the
7 period of time covered; and,
8 (2) More than fifty thousand dollars ($50,000) from the amount anticipated for
9 that item for the period of time covered.
10 Section 8. Timeline for Department of Finance. The timeline for events related
11 to the timely preparation of reports and statements to the Board of Directors for Fiscal Year 2002 is
12 attached as Exhibit A to this ordinance.
13 Section 9. Adherence to Financial Reporting Standards for the City of Little Rock,
14 Arkansas. Notwithstanding the provisions of the repealer clause set forth in Section 11, nothing
15 in this ordinance shall be deemed to mitigate or diminish the requirements set forth in the Financial
16 Reporting Standards for the City of Little Rock, Arkansas, as approved in Little Rock, Ark.,
17 Ordinance No. 18,605 (December 18, 2001).
18 Section 10. Severability. In the event any title, subtitle, section, subsection, subdivision,
19 paragraph, subparagraph, item, sentence, clause, phrase, or work of this ordinance is declared or
20 adjudged to be invalid or unconstitutional, such declaration or adjudication shall not affect the
21 remaining portions of the ordinance which shall remain in full force and effect as if the portion so
22 declared or adjudged invalid or unconstitutional was not originally a part of this ordinance.
23 Section 11. Repealer. All ordinances and resolutions, including but not limited to
24 Little Rock, Ark., Ordinance No. 18,409 (December 26, 2000) ( "the 2001 Budget ordinance "), and
25 any other ordinances or resolutions that relate to financial reporting within the City, are hereby
26 repealed to the extent of such inconsistency.
27 Section 12. Emergency Clause. Because of the Board of Directors has decreed that a
28 budget ordinance for the ensuing fiscal year and calendar year be passed prior to the end of the
29 current calendar year, and such a requirement makes it imperative that the fiscal operations of the
[PAGE 6 OF 81
Ordinance
2002 City Budget
1 City be in place to assure the continued provision of City services, operations, and facilities, and
2 because such continuation of services and the operation offacilities is essential to the public health,
3 safety and welfare, an emergency is, therefore, declared to exist and this ordinance shall be in full
4 force and effect on January 1, 2002, and the various City departments shall operate immediately
5 upon its passage, and for purposes of record keeping and otherwise, as if it were in fill force and
6 effect from and after the date of its passage.
7
8 PASSED: December 18, 2001
9
10 ATTEST:
11
12
13 Nanc_, Wood, Vity Clerk
14
15 APPROVED AS TO LEGAL FORM:
16 p
17 �V � � K.�a A4 "
18 Thomas M. Carpenter, City Attorney
19
[PAGE 7 OF 8]
Ordinance
2002 City Budget
APPROVED:
Ji ailey, Mayor
L
1
2
3
4
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
C
0
(NOTE: The Board of Directors recently enacted financial reporting standards for the City. Little Rock, Ark.,
Ordinance No. 18,605 (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. Reports to the Board
of Directors are based upon certain events after the month -end close. The month -end close is defined as the
fifteenth (15`') business day after the end of the previous calendar month. For FY 2002 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 statements 7
Department reconciles book balance and bank statements for 19 bank accounts 9
Department reconciles book balance and investment balances 11
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
Ordinance
2002 City Budget
11 1 1 1 •' • •
[PAGE 8 OF 81