190111 • ORDINANCE NO.19,011 •
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3 AN ORDINANCE PROVIDING FOR AND ADOPTING THE 2004
4 BUDGET FOR THE CITY OF LITTLE ROCK FOR THE PERIOD
s BEGINNING JANUARY 1, 2004 AND ENDING DECEMBER 31, 2004;
6 APPROPRIATING RESOURCES AND USES FOR EVERY EXPENDITURE
7 ITEM AND FUND; DECLARING AN EMERGENCY AND FOR OTHER
8 PURPOSES.
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10 WHEREAS, Little Rock, Ark., Rev. Code § 2 -214 (1988) mandates that the Board
11 of Directors adopt a budget for the ensuing fiscal year by not later than December 30, and
12 WHEREAS, the City Manager has fulfilled the requirements of Little Rock, Ark.,
13 Rev. Code § 2 -212 (1988), and submitted for consideration of the Board of Directors a
14 proposed budget and such other explanatory information as requested by the Board, and
is WHEREAS, the Board of Directors has reviewed the proposed Fiscal Year 2004
16 budget as presented by the City Manager, made certain modifications, and is now of the
17 opinion that based upon the financial information presented to the Board, the following
18 constitutes an appropriate determination of anticipated revenues, expenditures and
19 expenses for fiscal year, 2004, and should be adopted as the 2004 Budget for the City of
20 Little Rock, Arkansas, and
21 WHEREAS, the Board of Directors recognizes that it may be necessary to revise
22 the revenue and expenditure projections that this budget contains in light of a pending
23 ruling by the Arkansas Supreme Court in Richard Barclay, et a/ v. Jamie D. Waters, and a
24 decision as to whether the City may continue to receive future compensating use tax
25 collections and those proceeds currently held in escrow, and
26 WHEREAS, such revisions, if necessary, will focus upon every aspect of the budget
27 and may particularly be directed at contracts with outside agencies that are not a part of
28 the City,
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Ordinance
2004 City Budget
i NOW, THEREFOO BE IT ORDAINED BY THE BfRD OF DIRECTORS OF
2 THE CITY OF LITTLE ROCK, ARKANSAS:
3 Section 1. This Ordinance shall be known as the FY 2004 Budget Ordinance of
4 the City of Little Rock, Arkansas for the twelve -month period beginning January 1, 2004
s and ending December 31, 2004, reflecting estimated resources and uses as set forth
6 below. All resources herein are estimated and subject to change and all appropriation uses
7 are calculated upon available resources, and are also subject to change.
s Section 2. Definitions.For purposes of this ordinance, the following terms shall
9 have the following meanings:
10 (A) Board of Directors means the Mayor and members of the Board of
ri Directors of the City of Little Rock, Arkansas.
12 (B) City Clerk means the City Clerk, or designated representative, of the
13 City, or if no one is officially serving in the position, the Acting City Clerk, or
14 designated representative.
is (C) City Manager, means the City Manager, or designated representative,
16 of the City, or if no one is officially serving in the position, the Acting City Manager,
17 or designated representative, which may include an Acting Assistant City Manager.
is (D) Director of Finance means the Director of Finance and Treasurer, or
19 designated representative, for the City, or if no one is serving in the position, the
20 Acting Director of Finance and Treasurer.
21 (E) Expenditures means decreases in net financial resources under the
22 current financial resources measurement focus, and pertains to payment
23 of normal operating payments and encumbrances.
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Ordinance
2004 City Budget
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2 (F) Expenses mean the cost of doing business in a proprietary
3 organization, and can be either outflows or the using up of assets — cost expiration
4 — such as the depreciation of fixed assets. Within the context of this budget
s ordinance,. "proprietary organization," or "proprietary fund" refers only to a method
6 of accounting and is not used as any reference to whether the enterprise is
7 conducted in a governmental or proprietary manner, as that term is understood in
s Arkansas law. All enterprises referred to in this ordinance shall be operated by the
9 City in its governmental capacity.
10 (G) Fund Balance means the difference between assets and liabilities
11 reported in the governmental fund and represents the excess of revenues or
12 expenditures that has accumulated since the inception of the fund.
13 (H) Revenue(s) means: (1) Increases in the net current assets of a
14 Governmental Fund Type from other than expenditure refunds and residual equity
15 transfers, but does not include any general long -term debt proceeds and operating
16 transfers in — which are classified as 'other financing sources," unless these
17 constitute a reservation of fund balances for encumbrances carried forward from a
18 prior year and the expenditure for which the fund balance was created has also
19 been carried forward; or, (2) Increases in the net total assets of a Proprietary Fund
20 Type from other than expense refunds, capital contributions and residual equity
21 transfers, but does not include operating transfer in which are classified separately
22 from revenues, unless these constitute a reservation of fund balances for
23 encumbrances carried forward from a prior year and the expense for which the fund
24 balance was created has also been carried forward.
25 Section 3. Compliance with Existing Laws, Statutes and Ordinances.
26 This ordinance has been prepared in accordance with various Arkansas statutes that deal
27 with municipal fiscal reporting requirements, the Financial Reporting Standards for the City
28 of Little Rock, Arkansas, as approved in Little Rock, Ark., Ordinance No. 18,605
29 (December 18, 2001), and the standards of the Government Finance Officer's Association.
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Ordinance
2004 City Budget
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Section 4. Fis *Year 2004 Budget. The follr&g
respective amount for
every resource and appropriate use is herein set forth as follows:
(A) APPROPRIATE OPERATING RESOURCES:
General Fund
$110,407,056
Zoo
3,375,695
Golf
2,478,096
War Memorial Fitness Center
1,063,250
Concessions
119,780
Rivermarket
907,513
Waste Disposal
14,441,665
Street
13,607,950
Fleet Services
6,643,557
Impound
TOTAL RESOURCES
1,464,687
$154,509.249
Ordinance
2004 City Budget
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(B) APPROPRIAT PERATING USES:
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General Fund Departments
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General Administration, City Clerk,
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Racial and Cultural Diversity, and Arts & Humanities
$ 14,252,150
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Mayor & Board of Directors
281,747
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City Manager
779,700
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Community Programs
319,080
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City Attorney
1,348,018
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Cable TV
122,473
i>
Municipal Court — Criminal
1,046,606
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Municipal Court — Environmental
455,275
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Municipal Court — Traffic
936,187
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Finance
2,324,392
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Human Resources
1,227,412
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Office of Information Technology
2,614,951
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Planning & Development
2,133,883
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Housing & Neighborhood Programs
3,492,950
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Public Works
1,325,419
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Parks
6,417,270
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Fi re
25,058,431
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Police
41,381,607
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Parks /Zoo /Rivermarket /Concessions
3,063,765
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Restricted Reserve and Contingency
2,036,165
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Transfer to Street Fund
443,500
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Future Little Rock, Special Projects, PIT
3,663,575
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Vacancy Reductions
(4,317,500)
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TOTAL GENERAL FUND
$110,407,056
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Zoo
3,375,695
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Ordinance
2004 City Budget
i Golf • • 2,478,096
2 War Memorial Fitness Center 1,063,249
3 Concessions 119,780
4 Rivermarket 907,513
s Waste Disposal 14,821,280
6 Street Fund 13,634,950
7 Fleet Services 6,643,557
8 Impound 1,464,687
9 TOTAL USES $154,915,863
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11 Section 5. PILOT Payments to Area Schools. In accordance with Act 497
12 of 1981, Act 713 of 1991, and Act 1629 of 2001, of the Arkansas General Assembly, the
13 Director of Finance shall make appropriate payments to the Little Rock School District, the
14 Pulaski County Special School District, and Pulaski County from any affected payment -in-
15 lieu of taxes (PILOT) made to the City by a company for which an Act 9 Industrial
16 Development Bonds was issued; it is estimated that the amount of these resources for
17 FY2004 is three hundred and seventy-three thousand dollars ($373,000).
18 Section 6. Creation of Restricted Reserve Fund. The Board of Directors
19 mandates the creation of a Restricted Reserve Fund for the general fund and, further,
20 directs that deposits to the Restricted Reserve Fund during Fiscal Year 2004 shall total not
21 less than one million five hundred thousand dollars ($1,500,000).
22 Section 7. Definition ofSigniFcant Variance.
23 (A) In order to prepare this budget it has been necessary to estimate the
24 amount of revenue or other resources that the City will have available to it in fiscal year
25 2004, and the cost of the various expenditures and expenses that the City will incur during
26 this period.
27 (B) To assure the efficient and responsible operation of the City, and the
28 maintenance of its various programs and facilities, it is important for the Board of
29 Directors to be timely advised of an significant variance in revenues, or expenditures,
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Ordinance
2004 City Budget
i during the course of the&al year. Further, it is important f0he Board of Directors, the
2 City Manager and the Director of Finance, to agree as to what constitutes a "significant
s variance" of these items.
4 (C) It is further necessary to have a definition of "significant variance"
s that can be reviewed on an annual basis as a part of the City budget
6 process, and which can best reflect the point at which the Board of
7 Directors believes it should be notified that such a change of
8 circumstances has occurred in relation to any expenditure, expense,
9 fund balance, revenue, or resource.
10 (D) For Fiscal Year 2004, a "significant variance" shall be deemed to have
ii occurred if, during any reporting period, there has been an increase or decrease from the
12 budgeted amount for the period covered by a Monthly Financial Report, or a Quarterly
13 Fund Balance Report that is:
14 (1) Greater than five percent (5 %) of the amount anticipated for that
is item for the period of time covered; and,
16 (2) More than fifty thousand dollars ($50,000) from the amount
17 anticipated for that item for the period of time covered.
18 Section 8. Timeline for Department of Finance. The timeline for events
19 related to the timely preparation of reports and statements to the Board of Directors for
20 fiscal year 2004 is attached as Exhibit A to this ordinance.
21 Section 9. Adherence to Financial Reporting Standards for the City of
22 Little Rock, Arkansas. Notwithstanding the provisions of the repealer clause set forth
23 in Section 11, nothing in this ordinance shall be deemed to mitigate or diminish the
24 requirements set forth in the Financial Reporting Standards for the City of Little Rock,
25 Arkansas, as approved in Little Rock, Ark., Ordinance No. 18.605 (December 18, 2001).
26 Section 10. Severability. In the event any title, subtitle, section,
27 subsection, subdivision, paragraph, subparagraph, item, sentence, clause, phrase, or work
28 of this ordinance is declared or adjudged to be invalid or unconstitutional, such declaration
29 or adjudication shall not affect the remaining portions of the ordinance which shall remain
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Ordinance
2004 City Budget
i in full force and effect a0he portion so declared or adjud4invalid or unconstitutional
2 was not originally a part of this ordinance.
3 Section 11. Repealer. All ordinances and resolutions, including but not limited
4 to Little Rock, Ark., Ordinance No. 18,798 (December 17, 2002) ( "the 2003 Budget
5 ordinance', and any other ordinances or resolutions that relate to financial reporting
6 within the City, are hereby repealed to the extent of such inconsistency.
7 Section 12. Emergency Clause. Because the Board of Directors has
8 decreed that a budget ordinance for the ensuing fiscal year and calendar year be passed
9 prior to the end of the current calendar year, and such a requirement makes it imperative
io that the fiscal operations of the City be in place to assure the continued provision of City
ii services, operations, and facilities, and because such continuation of services and the
12 operation of facilities is essential to the public health, safety and welfare, an emergency is,
13 therefore, declared to exist and this ordinance shall be in full force and effect on January
14 1, 2004, and the various City departments shall operate immediately upon its passage,
15 and for purposes of record keeping and otherwise, as if it were in full force and effect
16 from and after the date of its passage.
17 PASSED: DECEMBER 16, 2003
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19 ATTEST: �ROVED-,�
20V (wt(1 U
21 Nancy Wo d, City Clerk tuh Dailey, Mayor
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23 APPROVED AS TO LEGAL FORM:
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26 Thomas M. Carpenter, CityvAttorney
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Ordinance
2004 City Budget
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2 EXHIBIT A: FY 2004 BLOET ORDINANCE FOR THE CITY OF A ROCK, ARKANSAS
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4 [NOTE: The Board of Directors recently enacted financial reporting standards for the City. Little Rock,
5 Ark., Ordinance No. (December 18, 2001). Section 12 this ordinance requires that as a part of the
6 annual budget process the Board of Directors set a timeline for action by the Department of Finance to
7 assure the timely preparation of financial reports. This timeline is to be adopted upon recommendation of
8 the City Manager after consultation with the Director of Finance and the various financial institutions the
9 City uses. This timeline is to be reviewed each year to assure that it sets reasonable expectations for City
10 staff, but at the same time, assures the preparation and publication of reports to the Board of Directors as
11 quickly as possible. Reports to the Board of Directors are based upon certain events after the month -end
12 close. The month -end close is defined as the fifteenth (15"') business day after the end of the previous
13 calendar month. For FY 2004 the calendar of events is as follows:
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15 CALENDAR OF EVENTS RELATED TO TIMELY PREPARATION OF CITY
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FINANCIAL REPORTS
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WORKING DAY
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EVENT
(after the end of the
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calendar month)
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Department notification of deposits submitted to accounting
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City obtains monthly bank statement
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Department processes bank files to produce combined and payroll outstanding check lists 5
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City obtains monthly investment statements
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Department reconciles book balance and bank statements for all bank accounts
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Department reconciles book balance and investment balances
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Department finalizes and enters all remaining journal entries
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Department reviews and corrects work to date
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Department conducts final review of information for reports
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Department processes computer system reports (month -end close)
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Department completes preparation of monthly reports
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City Manager and Finance Director publish monthly report to Board of Directors
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Ordinance
2004 City Budget
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•OFFICE OF THE CITY MANAGID
LITTLE ROCK, ARKANSAS
BOARD OF DIRECTORS COMMUNICATION
December 16, 2003 AGENDA
Subject
Ordinance providing for and
adopting the 2004 budget for
the City of Little Rock for the
period beginning January 1,
2004 and ending December
31, 2004; appropriating
resources and uses for every
expenditure item and fund;
declaring an emergency and
for other purposes
Action Required
4Ordinance
Resolution
Approval
Information Report
Submitted By
Bruce Moore
SYNOPSIS The budget ordinance establishes the 2004 budget for 10
operating funds, defines the minimum 2004 deposit to the
restricted reserve and reaffirms financial reporting
requirements.
FISCAL IMPACT The 2004 budget maintains existing service levels, fees and tax
rates.
RECOMMENDATION Approval
CITIZEN Over 50 citizens attended one or more of the seven public
PARTICIPATION hearings. Citizens have contacted Board members and staff
members with their suggestions for the 2004 budget. Additional
comment may be received during the citizen comment portion
of the agenda.
Ordinance
2004 City Budget
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BACKGRO110 The 2004 budget was prepared )a the anticipation that some
revenue growth would begin to cur for key revenues. Tax
rates stayed the same as 2003 levels as did General Fund fees.
General Fund revenues include $6,000,000 of use tax
collections. This matter will be argued before the Arkansas
Supreme Court in early 2004. If the City is unsuccessful in this
case, 2004 revenues will be reduced and the Board of Directors
will have to cut 2004 expenditures.
Full time positions have been reduced by 26 positions through
the elimination of vacant positions. Pay and benefit increases
have been included for all employees.
Budgeted revenues are below budgeted expenditures in the
Solid Waste fund. This reflects a July 1 implementation of a
$2.08 per month increase in fees and a planned spend down of
reserves. The July 1 rate increase should be sufficient to fund
Solid Waste operations through 2006. Street fund includes a
$27,000 spend down of reserves. Revenues equal expenditures
for all other funds.
In addition to establishing the revenue and expenditure budgets
for these funds, the ordinance reaffirms financial reporting
requirements established in December 2001 and sets the
minimum 2004 contribution to the restricted reserve at
$1,500,000.
Ordinance
2004 City Budget
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