1879818,798
ORDINANCE NO.
2
3 AN ORDINANCE PROVIDING FOR AND ADOPTING THE 2003 BUDGET
4 FOR THE CITY OF LITTLE ROCK FOR THE PERIOD BEGINNING
5 JANUARY 1, 2003 AND ENDING DECEMBER 31, 2003; 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
19 Directors adopt a budget for the ensuing fiscal year by not later than December 30, and
11 WHEREAS, the Interim City Manager has fulfilled the requirements of Little Rock, Ark.,
12 Rev. Code § 2 -212 (1988), and submitted for consideration of the Board of Directors a proposed
13 budget and such other explanatory information as requested by the Board, and
14 WHEREAS, the Board of Directors has reviewed the proposed Fiscal Year 2003 budget as
15 presented by the Interim City Manager, made certain modifications, and is now of the opinion that
16 based upon the financial information presented to the Board, the following constitutes an
17 appropriate determination of anticipated revenues, expenditures and expenses for fiscal year, 2003,
18 and should be adopted as the 2003 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 FY2003 Budget Ordinance of the City
22 'of Little Rock, Arkansas for the twelve -month period beginning January 1, 2003 and ending
23 December 31, 2003, 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.
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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 /Interim City Manager, means the City Manager, or designated
5 representative, of the City, or if no one is officially serving in the position, the Acting City
6 Manager, or designated representative, which may include an Acting Assistant City
7 Manager.
8 (D) Director of Finance means the Director of Finance and Treasurer, or
9 designated representative, for the City, or if no one is serving in the position, the Acting
10 Director of Finance and Treasurer.
11 (E) Expenditures means decreases in net financial resources under the current
12 financial resources measurement focus, and pertains to payment of normal operating
13 payments and encumbrances.
14 (F) Expenses mean the cost of doing business in a proprietary organization, and
15 can be either outflows or the using up of assets — cost expiration — such as the depreciation
16 of fixed assets. Within the context of this budget ordinance, "proprietary organization," or
17 "proprietary fund" refers only to a method of accounting and is not used as any reference to
18 whether the enterprise is conducted in a governmental or proprietary manner, as that term is
19 understood in Arkansas law. All enterprises referred to in this ordinance shall be operated by
20 the City in its governmental capacity.
21 (G) Fund Balance means the difference between assets and liabilities reported in
22 the governmental fund. The excess of revenues or expenditures that has accumulated since
23 the inception of the fund.
24 (H) Revenue(s) means: (1) Increases in the net current assets of a Governmental
25 Fund Type from other than expenditure refunds and residual equity transfers, but does not
26 include any general long -term debt proceeds and operating transfers in — which are classified
27 as "other financing sources," unless these constitute a reservation of fund balances for
28 encumbrances carried forward from a prior year and the expenditure for which the fund
29 balance was created has also been carried forward; or, (2) Increases in the net total assets of
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a Proprietary Fund Type from other than expense refunds, capital contributions and residual
equity transfers, but does not include operating transfer in which
are classified separately
from revenues, unless these constitute 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 reporting 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 2003 Budget. The following respective amount for every
resource and appropriate use is herein set forth as follows:
(A) APPROPRIATE OPERATING RESOURCES:
General Fund
$102,628,800
Zoo
3,119,794
Golf
1,914,515
War Memorial Fitness Center
783,936
Concessions
110,323
Rivermarket
712,510
Waste Disposal
13,354,173
Street
13,334,844
Fleet Services
6,566,854
Impound
1,335,862
TOT i RESOURCES
5143.861.611
(B) APPROPRIATE OPERATING USES:
General Fund Departments
General Administration, City Clerk,
Racial and Cultural Diversity, and Arts & Humanities
$ 11,804,450
Mayor & Board of Directors
276,490
Ordinance
2003 City Budget
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City Manager
699,072
Community Programs
321,592
City Attorney
1,336,705
Cable TV
126,512
Municipal Court — Criminal
994,455
Municipal Court — Environmental
419,311
Municipal Court — Traffic
937,983
Finance
2,205,909
Human Resources
1,177,719
Office of Information Technology
2,704,317
Planning & Development
2,090,450
Housing & Neighborhood Programs
3,460,132
Public Works
1,404,502
Parks
6,086,481
Fire
22,837,536
Police
40,560,187
Parks /Zoo/Rivermarket
2,273,794
Restricted Reserve and Contingency
974,549
Transfer to Street Fund
443,500
Future Little Rock, Special Projects, PIT
3,799,575
Vacancy Reductions
(4,316,395)
TOTAL GENERAL FUND
$102,618,826
Zoo
3,119,794
Golf
1,761,306
War Memorial Fitness Center
783,936
Concessions
107,034
Rivermarket
711,331
Waste Disposal
14,003,435
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1 Street Fund 13,353,090
2 Fleet Services 6,566,854
3 Impound 1,316,204
4 TOTAL USES 5144 341810
5
6 Section 5. PILOT Payments to Area Schools. In accordance with Act 497 of 1981,
7 Act 713 of 1991, and Act 1629 of 2001, of the Arkansas General Assembly, the Director of Finance
8 shall make appropriate payments to the Little Rock School District, the Pulaski County Special
9 School District, and Pulaski County from any affected payment -in -lieu of taxes (PILOT) made to
io the City by a company for which an Act 9 Industrial Development Bonds was issued; it is estimated
11 that the amount of these resources for FY2003 is two hundred and four thousand dollars ($204,000).
12 Section 6. Creation of Restricted Reserve Fund. The Board of Directors
13 mandates the creation of a Restricted Reserve Fund for the general fund and, further, directs that
14 deposits to the Restricted Reserve Fund during Fiscal Year 2003 shall total not less than one million
15 dollars ($1,000,000).
16 Section 7. Definition of Significant Variance.
17 (A) In order to prepare this budget it has been necessary to estimate the amount of
18 revenue or other resources that the City will have available to it in fiscal year 2003, and the cost of
19 the various expenditures and expenses that the City will incur during this period.
20 (B) To assure the efficient and responsible operation of the City, and the maintenance of
21 its various programs and facilities, it is important for the Board of Directors to be timely advised of
22 an significant variance in revenues, or expenditures, during the course of the fiscal year. Further, it
23 is important for the Board of Directors, the City Manager and the Director of Finance, to agree as to
24 what constitutes a "significant variance" of these items.
25 (C) It is further necessary to have a definition of "significant variance" that can be
26 reviewed on an annual basis as a part of the City budget process, and which can best reflect the
27 point at which the Board of Directors believes it should be notified that such a change of
28 circumstances has occurred in relation to any expenditure, expense, fund balance, revenue, or
29 resource.
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I (D) For Fiscal Year 2003, a "significant variance" shall be deemed to have occurred if,
2 during any reporting period, there has been an increase or decrease from the budgeted amount for
3 the period covered by a Monthly Financial Report, or a Quarterly Fund Balance Report that is:
4 (1) Greater than five percent (5 %) of the amount anticipated for that item for the
5 period of time covered; and,
6 (2) More than fifty thousand dollars ($50,000) from the amount anticipated for
7 that item for the period of time covered.
8 Section 8. Timeline for Department of Finance. The timeline for events related
9 to the timely preparation of reports and statements to the Board of Directors for Fiscal Year 2003 is
10 attached as Exhibit A to this ordinance.
11 Section 9. Adherence to Financial Reporting Standards for the City of Little Rock,
12 Arkansas. Notwithstanding the provisions of the repealer clause set forth in Section 11, nothing
13 in this ordinance shall be deemed to mitigate or diminish the requirements set forth in the Financial
14 Reporting Standards for the City of Little Rock, Arkansas, as approved in Little Rock, Ark.,
15 Ordinance No. 18.605 (December 18, 2001).
16 Section 10. Severability. In the event any title, subtitle, section, subsection, subdivision,
17 paragraph, subparagraph, item, sentence, clause, phrase, or work of this ordinance is declared or
18 adjudged to be invalid or unconstitutional, such declaration or adjudication shall not affect the
19 remaining portions of the ordinance which shall remain in full force and effect as if the portion so
20 declared or adjudged invalid or unconstitutional was not originally a part of this ordinance.
21 Section 11. Repealer. All ordinances and resolutions, including but not limited to
22 Little Rock, Ark., Ordinance No. 18,607 (December 18, 2001) ( "the 2002 Budget ordinance "), and
23 any other ordinances or resolutions that relate to financial reporting within the City, are hereby
24 repealed to the extent of such inconsistency.
25 Section 12. Emergency Clause. Because the Board of Directors has decreed that a
26 budget ordinance for the ensuing fiscal year and calendar year be passed prior to the end of the
27 current calendar year, and such a requirement makes it imperative that the fiscal operations of the
28 City be in place to assure the continued provision of City services, operations, and facilities, and
29 because such continuation of services and the operation offacilities is essential to the public health,
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1 safety and welfare, an emergency is, therefore, declared to exist and this ordinance shall be in full
2 force and effect on January 1, 2003, and the various City departments shall operate immediately
3 upon its passage, and for purposes of record keeping and otherwise, as if it were in full force and
4 effect from and after the date of its passage.
5 PASSED: DECEMBER 17, 2002
6 %.
7 ATTEST:
8 ZZ21 i /.� X21
9 Nan y Wo , City Clerk
io APPROVED AS TO LEGAL FORM:
11
12 /n�W�N✓ Edon
13 Thomas M. Carpenter, City Attorney
14 //
Jim -`, Mayor -
15 //
16 [NOTE: The Board! offpirectors recently enacted financial reporting standards for the City. Little Rock, Ark.,
17 Ordinance No. 19, "(December 18, 2001). Section 12 this ordinance requires that as a part of the annual
18 budget process the Board of Directors set a timeline for action by the Department of Finance to assure the timely
19 preparation of financial reports. This timeline is to be adopted upon recommendation of the City Manager after
20 consultation with the Director of Finance and the various financial institutions the City uses. This timeline is to
21 be reviewed each year to assure that it sets reasonable expectations for City staff, but at the same time, assures
22 the preparation and publication of reports to the Board of Directors as quickly as possible. Reports to the Board
23 of Directors are based upon certain events after the month -end close. The month -end close is defined as the
24 fifteenth (15`h) business day after the end of the previous calendar month. For FY 2003 the calendar of events is
25 as follows:
26
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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
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EXHIBIT A• FY 2003 BUDGET ORDiNANCF FOR THE CITY OF LITTLE ROCK ARKANSAS
Ordinance
2003 City Budget
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