20671I
2
ORDINANCE NO. 20,671
3 AN ORDINANCE TO PROVIDE FOR AND TO ADOPT THE 2013
4 BUDGET FOR THE CITY OF LITTLE ROCK, ARKANSAS, FOR THE
5 PERIOD BEGINNING JANUARY 1, 2013, AND ENDING DECEMBER
6 31, 2013; TO APPROPRIATE RESOURCES AND USES FOR EVERY
7 EXPENDITURE ITEM AND FUND; TO DECLARE AN EMERGENCY;
8 AND FOR OTHER PURPOSES.
9
10 WHEREAS, Little Rock, Ark., Rev. Code § 2 -214 (1988), as amended by mandates that the Board of
11 Directors adopts a budget for the ensuing fiscal year by not later than December 30`h, and
12 WHEREAS, the Mayor and the City Manager have fulfilled the requirements of Little Rock, Ark.,
13 Rev. Code § 2 -212 (1988), and Little Rock, Ark., Ordinance No. 19,761 (June 12, 2007), and submitted
14 for consideration of the Board of Directors a proposed budget and such other explanatory information as
15 requested by the Board, and
16 WHEREAS, the Board of Directors has reviewed the proposed Fiscal Year 2013 Budget as presented
17 by the Mayor and the City Manager, made certain modifications, and is now of the opinion that based
18 upon the financial information presented to the Board, the following constitutes an appropriate
19 determination of anticipated revenues, expenditures and expenses for Fiscal Year 2013, and should be
20 adopted as the 2013 Budget for the City of Little Rock, Arkansas,
21 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY
22 OF LITTLE ROCK, ARKANSAS:
23 Section 1. This ordinance shall be known as the FY2013 Budget Ordinance of the City of Little
24 Rock, Arkansas, for the twelve (12) -month period beginning January 1, 2013, and ending December 31,
25 2013, reflecting estimated resources and uses as set forth below.
26 Section 2. All resources identified within this ordinance herein are estimated and subject to change,
27 and all appropriation uses identified within this ordinance are calculated upon available resources, and are
28 also subject to change.
29 Section 3. Definitions. For purposes of this ordinance, the following terms shall have the follow -
30 ing meanings:
31 (A) Board of Directors means the Mayor and members of the Board of Directors of the City of
32 Little Rock, Arkansas.
33 (B) City Clerk means the City Clerk, or designated representative, of the City, or if no one is
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I officially serving in the position, the Acting City Clerk, or designated representative.
2 (C) City Manager, means the City Manager, or designated representative, of the City, or if no one
3 is officially serving in the position, the Acting City Manager, or designated representative,
4 which may include an Acting Assistant City Manager.
5 (D) Director of Finance means the Director of Finance and Treasurer, or designated
6 representative, for the City, or if no one is serving in the position, the Acting Director of Fi-
7 nance and Treasurer.
8 (E) Expenditures means decreases in net financial resources under the current financial resources
9 measurement focus, and pertains to payment of normal operating payments and
10 encumbrances.
11 (F) Expenses mean the cost of doing business in a proprietary organization, and can be either
12 outflows or the using up of assets — cost expiration — such as the depreciation of fixed assets.
13 Within the context of this budget ordinance, "proprietary organization," or "proprietary fund"
14 refers only to a method of accounting and is not used as any reference to whether the
15 enterprise is conducted in a governmental or proprietary manner, as that term is understood in
16 Arkansas law. All enterprises referred to in this ordinance shall be operated by the City in its
17 governmental capacity.
18 (G) Fund Balance means the difference between assets and liabilities reported in the
19 governmental fund and represents the excess of revenues or expenditures that has
20 accumulated since the inception of the fund.
21 (H) Revenue(s) means:
22 (i) Increases in the net current assets of a Governmental Fund Type from other than
23 expenditure refunds and residual equity transfers, but does not include any general long -
24 term debt proceeds and operating transfers in — which are classified as "other financing
25 sources," unless these constitute a reservation of fund balances for encumbrances carried
26 forward from a prior year and the expenditure for which the fund balance was created has
27 also been carried forward; or,
28 (ii) Increases in the net total assets of a Proprietary Fund Type from other than expense
29 refunds, capital contributions and residual equity transfers, but does not include operating
30 transfer in which are classified separately from revenues, unless these constitute a
31 reservation of fund balances for encumbrances carried forward from a prior year and the
32 expense for which the fund balance was created has also been carried forward.
33 Section 4. Compliance with Existing Laws, Statutes and Ordinances. This ordinance has been
34 prepared in accordance with various Arkansas statutes that deal with municipal fiscal reporting
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requirements, the Financial Reporting Standards for the City of Little Rock, Arkansas, as approved in
Little Rock, Ark., Rev. Code §§ 2 -245 to 260.8 (1988), and the standards
of the Government Finance
Officer's Association.
Section 5. Fiscal Year 2013 Budget. The following respective
amount for every resource and
appropriate use is herein set forth as follows:
(A) APPROPRIATE OPERATING RESOURCES:
General Fund
$171,211,160
Street
17,594,796
Waste Disposal
17,194,521
Parking Garages
2,044,783
Fleet Services
12,616,069
Vehicle Storage Facility
TOTAL RESOURCES
1,346,960
P-222,008,289
(B) APPROPRIATE OPERATING USES:
General Fund Departments
General Administration
$22,481,516
Board of Directors
234,774
Community Programs
358,428
City Attorney
1,706,756
Municipal Court — Criminal
1,381,441
Municipal Court — Environmental
565,562
Municipal Court — Traffic
1,222,308
Finance
3,006,838
Human Resources
1,549,857
Office of Information Technology
4,478,965
Planning & Development
2,499,148
Housing & Neighborhood Programs
5,534,697
Public Works
1,138,346
Parks and Recreation
9,534,163
RiverMarket
1,197,800
Golf
2,081,552
Fitness and Aquatics
891,475
Zoo
6,091,304
Fire
39,167,052
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Police
58,401,831
Transfer to Street Fund
1,082,000
Transfer to Police /Fire Pension Funds
1,000,000
Future Little Rock, Special Projects, PIT, Grant Match
9,505,347
Vacancy Allocation (Authorized Unfilled Positions)
(3,900,000)
TOTAL GENERAL FUND
$171,211,160
Street Fund
17,594,796
Solid Waste
17,688,470
Parking Garages
2,179,806
Fleet Services
12,616,069
Vehicle Storage Facility
TOTAL USES
1,293,257
Section 6. Outside Agency Contributions. The appropriation for
5222 SR;_45R
General Administration
operating uses in Section 4 above includes the following amounts for various entities
with which the City
contracts for public services, or in which the City has an ownership interest:
Central Arkansas Transit Authority
$8,208,468
Pulaski County Regional Detention Center
1,050,000
Arkansas Arts Center
400,000
Museum of Discovery
200,000
Chamber of Commerce
200,000
Metroplan
178,042
Downtown Partnership
160,000
PAGIS
136,300
First Tee
91,500
Metro Little Rock Alliance
100,000
Pulaski County Health Unit
56,100
Saint Vincent's
25,381
City Beautiful _
2.500
Section 7. PILOT Payments. 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
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I Development Bonds was issued; it is estimated that the gross amount of these resources for FY2013 is
2 One Million, Five Hundred Ninety-Nine Thousand, Five Hundred Eighty -Eight Dollars ($1,599,588).
3 Section 8. Appropriation for the Compensation of Elected Officials. This budget contains a
4 personnel appropriation for the Mayor and the Members of the Board of Directors as follows:
5 (A) Annual compensation of the Mayor is $160,000, and such other amounts as may from time to
6 time be approved during the time this ordinance is effective;
7 (B) Annual compensation for each member of the Board of Directors is $12,000;
8 (C) In addition to these amounts, there are expenditures noted within this ordinance which document
9 the amounts paid for Mayor and Board member expenses and benefits.
10 Section 9. Definition of Significant Variance.
11 (A) In order to prepare this budget it has been necessary to estimate the amount of revenue or other
12 resources that the City will have available to it in Fiscal Year 2013, and the cost of the various
13 expenditures and expenses that the City will incur during this period.
14 (B) To assure the efficient and responsible operation of the City, and the maintenance of its various
15 programs and facilities, it is important for the Board of Directors to be timely advised of a significant
16 variance in revenues, or expenditures, during the course of the fiscal year. Further, it is important for the
17 Board of Directors, the City Manager and the Director of Finance, to agree as to what constitutes a
18 "significant variance" of these items.
19 (C) It is further necessary to have a definition of "significant variance" that can be reviewed on an
20 annual basis as a part of the City budget process, and which can best reflect the point at which the Board
21 of Directors believes it should be notified that such a change of circumstances has occurred in relation to
22 any expenditure, expense, fund balance, revenue, or resource.
23 (D) For Fiscal Year 2013, a "significant variance" shall be deemed to have occurred if, during any
24 reporting period, there has been an increase or decrease from the budgeted amount for the period covered
25 by a Monthly Financial Report, or a Quarterly Fund Balance Report that is:
26 (i) Greater than 5% of the amount anticipated for that item for the period of time covered; and,
27 (ii) More than Fifty Thousand Dollars ($50,000) from the amount anticipated for that item for the
28 period of time covered.
29 Section 10. Timeline for Department of Finance. The timeline for events related to the timely
30 preparation of reports and statements to the Board of Directors for Fiscal Year 2013 is attached as Exhibit
31 A to this ordinance.
32 Section 11. Severability. In the event any title, subtitle, section, subsection, subdivision, paragraph,
33 subparagraph, item, sentence, clause, phrase, or work of this ordinance is declared or adjudged to be
34 invalid or unconstitutional, such declaration or adjudication shall not affect the remaining portions of the
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ordinance which shall remain in full force and effect as if the portion so declared or adjudged invalid or
unconstitutional was not originally a part of this ordinance.
Section 12. Repealer. All ordinances and resolutions, including but not limited to Little Rock, Ark.,
Ordinance No. 20,515 (December 13, 2011) ( "the 2012 Budget Ordinance "), and any other ordinances or
resolutions that relate to financial reporting within the City, are hereby repealed to the extent of such
inconsistency.
Section 13. Emergency Clause. It is imperative that a budget ordinance for the ensuing fiscal year
and calendar year be passed prior to the end of the current calendar year in order to assure the contin-
ued 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, with the
exception of Section 8 which deals with the compensation of the Mayor and Members of the Board of
Directors, shall be in full force and effect on January 1, 2013, and the various City Departments 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 18, 2012
ATTEST;, — APPROVED•
18
19 Susa aLaley, ity Clerk
20 APPR AS TO LEGAL FORM:
21
22 A44"�
23 Thomas M. Carpenter, City Attorney
24 11
25 11
26 ll
27 11
28 ll
29 ll
30 11
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32 H
33 11
34 H
Mark Stodola, Mayor
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[NOTE: The Board of Directors enacted financial reporting standards for the City. Little Rock,
Ark., Rev. Code §§ 2 -245 to 260.8 (1988) Section 2 -260 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`h) business day after the end of the previous calendar month. For FY 2013 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
1
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
11
Department finalizes and enters all remaining journal entries
14
Department reviews and corrects work to date
15
Department conducts final review of information for reports
16
Department processes computer system reports (month -end close)
17
Department completes preparation of monthly reports
22
City Manager and Finance Director present monthly report to Board of Directors
City Manager has monthly report posted in City website following Board presentation
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