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ORDINANCE NO. 19,898
2
3 AN ORDINANCE TO PROVIDE FOR AND TO ADOPT THE 2008 BUDGET FOR THE CITY OF
4 LITTLE ROCK FOR THE PERIOD BEGINNING JANUARY 1, 2008 AND ENDING DECEMBER
5 31, 2008; 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 2008 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 2008, and should be adopted as the 2008 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 FY2008 Budget Ordinance of the City of
21 Little Rock, Arkansas for the twelve -month period beginning January 1, 2008 and ending De-
22 cember 31, 2008, 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:
27 (A) Board of Directors means the Mayor and members of the Board of Directors of the
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I City of Little Rock, Arkansas.
2 (B) City Clerk means the City Clerk, or designated representative, of the City, or if no
3 one is officially serving in the position, the Acting City Clerk, or designated repre-
4 sentative.
5 (C) City Manager, means the City Manager, or designated representative, of the City, or
6 if no one is officially serving in the position, the Acting City Manager, or designated
7 representative, which may include an Acting Assistant City Manager.
8 (D) Director of Finance means the Director of Finance and Treasurer, or designated rep -
9 resentative, for the City, or if no one is serving in the position, the Acting Director of
10 Finance and Treasurer.
11 (E) Expenditures means decreases in net financial resources under the current financial
12 resources measurement focus, and pertains to payment of normal operating pay -
13 ments and encumbrances.
14 (F) Expenses mean the cost of doing business in a proprietary organization, and can be
15 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 organiza-
17 tion," or "proprietary fund" refers only to a method of accounting and is not used as
18 any reference to whether the enterprise is conducted in a governmental or proprie-
19 tary manner, as that term is understood in Arkansas law. All enterprises referred to
20 in this ordinance shall be operated by the City in its governmental capacity.
21 (G) Fund Balance means the difference between assets and liabilities reported in the
22 governmental fund and represents the excess of revenues or expenditures that has
23 accumulated since the inception of the fund.
24 (H) Revenue(5) means: (1) Increases in the net current assets of a Governmental Fund
25 Type from other than expenditure refunds and residual equity transfers, but does
26 not include any general long -term debt proceeds and operating transfers in - which
27 are classified as "other financing sources," unless these constitute a reservation of
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I fund balances for encumbrances carried forward from a prior year and the expendi-
2 ture for which the fund balance was created has also been carried forward; or, (2) In-
a creases in the net total assets of a Proprietary Fund Type from other than expense
4 refunds, capital contributions and residual equity transfers, but does not include op-
5 erating transfer in which are classified separately from revenues, unless these con -
6 stitute a reservation of fund balances for encumbrances carried forward from a prior
7 year and the expense for which the fund balance was created has also been carried
8 forward.
9 Section 3. Compliance with Existing Laws, Statutes and Ordinances. This ordinance has
10 been prepared in accordance with various Arkansas statutes that deal with municipal fiscal re-
11 porting requirements, the Financial Reporting Standards for the City of Little Rock, Arkansas, as
12 approved in Little Rock, Ark., Ordinance No. 18,605 (December 18, 2001), and the standards of
13 the Government Finance Officer's Association.
14 Section 4. Fiscal Year 2008 Budget. The following respective amount for every resource
15 and appropriate use is herein set forth as follows:
16 (A) APPROPRIATE OPERATING RESOURCES:
17 General Fund $134,072,006
18 Zoo 4,752,030
19 Golf 3,026,226
20 Jim Dailey Fitness and Aquatic Center 1,135,530
21 Concessions 118,885
22 Rivermarket 887,659
23 Waste Disposal 17,286,142
24 Street 14,899,005
25 Parking Garages 1,894,203
26 Fleet Services 9,461,667
27 Vehicle Storage Facility 1.373.000
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TOTAL RESOURCES
$188.906.353
(B) APPROPRIATE OPERATING USES:
General Fund Departments
General Administration
$ 22,445,287
Board of Directors
285,413
Community Programs
391,688
City Attorney
1,609,548
Municipal Court - Criminal
1,262,633
Municipal Court - Environmental
498,787
Municipal Court - Traffic
1,189,256
Finance
2,701,881
Human Resources
1,414,271
Office of Information Technology
3,174,980
Planning & Development
2,242,802
Housing & Neighborhood Programs
4,31 7,227
Public Works
1,351,537
Parks
7,552,025
Fire
31 ,486,855
Police
47,889,488
Parks/ Zoo/ Rivermarket /Concessions
3,422,993
Transfer to Street Fund
604,685
Future Little Rock, Special Projects, PIT
4,982,285
Vacancy Reductions
(4,751 ,665)
TOTAL GENERAL FUND
$134,071,976
Zoo
4,752,030
Golf
3,026,226
Jim Dailey Fitness and Aquatic Center
1,135,530
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Concessions 118,885
Rivermarket 887,659
Solid Waste 18,600,632
Street Fund 14,899,005
Parking Garages 2,184,925
Fleet Services 10,461 ,667
Vehicle Storage Facility 1,373,000
TOTAL USES $191,511.53
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 FY2008 is two hundred forty -seven thousand seven
hundred thirty -eight dollars ($247,738).
Section 6. Definition of Significant Variance.
(A) In order to prepare this budget it has been necessary to estimate the amount of reve-
nue or other resources that the City will have available to it in fiscal year 2008, and the cost of
the various expenditures and expenses that the City will incur during this period.
(B) To assure the efficient and responsible operation of the City, and the maintenance of its
various programs and facilities, it is important for the Board of Directors to be timely advised of
a significant variance in revenues, or expenditures, during the course of the fiscal year. Further,
it is important for the Board of Directors, the City Manager and the Director of Finance, to agree
as to what constitutes a "significant variance" of these items.
(C) It is further necessary to have a definition of "significant variance" that can be reviewed
on an annual basis as a part of the City budget process, and which can best reflect the point at
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1 which the Board of Directors believes it should be notified that such a change of circumstances
2 has occurred in relation to any expenditure, expense, fund balance, revenue, or resource.
3 (D) For Fiscal Year 2008, a "significant variance" shall be deemed to have occurred if, during
4 any reporting period, there has been an increase or decrease from the budgeted amount for the
5 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 period
7 of time covered; and,
8 (2) More than fifty thousand dollars ($50,000) from the amount anticipated for that item
9 for the period of time covered.
10 Section 7. 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 2008 is attached
12 as Exhibit A to this ordinance.
13 Section 8. Severabi/ity. In the event any title, subtitle, section, subsection, subdivision,
14 paragraph, subparagraph, item, sentence, clause, phrase, or work of this ordinance is declared
15 or adjudged to be invalid or unconstitutional, such declaration or adjudication shall not affect
16 the remaining portions of the ordinance which shall remain in full force and effect as if the por-
17 tion so declared or adjudged invalid or unconstitutional was not originally a part of this ordi-
18 nance.
19 Section 9. Repealer. All ordinances and resolutions, including but not limited to Little
20 Rock, Ark., Ordinance No. 19,657 (December 19, 2006) ( "the 2007Budget ordinance "), and any
21 other ordinances or resolutions that relate to financial reporting within the City, are hereby re-
22 pealed to the extent of such inconsistency.
23 Section 1 1 . Emergency Clause. It is imperative that a budget ordinance for the ensuing fi5-
24 cal year and calendar year be passed prior to the end of the current calendar year in order to
25 assure the continued provision of City services, operations, and facilities; such continuation is
26 essential to the public health, safety and welfare, an emergency is, therefore, declared to exist
27 and this ordinance shall be in full force and effect on January 1, 2008, and the various City de-
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I partments shall operate immediately upon its passage, and for purposes of record keeping and
2 otherwise, as if it were in full force and effect from and after the date of its passage.
3 PASSED: December 21, 2007
4 ATTEST:
7 Nan¢y Wood, ty Clerk
8 APPROVED AS TO LEGAL FORM:
9
10 =-:: ----------------- Av
11 Thomas M. Carpenter, City torney
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Mark Stodola, Mayor
1 EXHIBIT A: FY 2007 BUDGET ORDINANCE.FOR THE CITY OF LITTLE ROCK�ARKANSAS
2
3 [NOTE: The Board of Directors recently enacted financial reporting standards for the City. Little
4 Rock, Ark., Ordinance No. 18,675 (December 18, 2001). Section 12 this ordinance requires
5 that as a part of the annual budget process the Board of Directors set a timeline for action by
6 the Department of Finance to assure the timely preparation of financial reports. This timeline is
7 to be adopted upon recommendation of the City Manager after consultation with the Director of
8 Finance and the various financial institutions the City uses. This timeline is to be reviewed each
9 year to assure that it sets reasonable expectations for City staff, but at the same time, assures
10 the preparation and publication of reports to the Board of Directors as quickly as possible. Re-
11 ports to the Board of Directors are based upon certain events after the month -end close. The
12 month -end close is defined as the fifteenth (15th) business day after the end of the previous
13 calendar month. For FY 2008 the calendar of events is as follows:
14
15 CALENDAR OF EVENTS RELATED TO TIMELY PREPARATION OF CITY FINANCIAL REPORTS
16
17 EVENT WORKING DAY
18 (after the end of the calendar month)
19 Department notification of deposits submitted to accounting 3
20 City obtains monthly bank statement 4
21 Department processes bank files to produce combined and payroll outstanding check lists S
22 City obtains monthly investment statement 7
23 Department reconciles book balance and bank statements for all bank accounts 9
24 Department reconciles book balance and investment balances 11
25 Department finalizes and enters all remaining journal entries 12
26 Department reviews and corrects work to date 13
27 Department conducts final review of information for reports 14
28 Department processes computer system reports (month -end close) 15
29 Department completes preparation of monthly reports 20
30 City Manager and Finance Director publish monthly report to Board of Directors 21
31 City Manager has monthly report posted in City website 21
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