192491
2
ORDINANCE NO. 19,249
3 AN ORDINANCE TO PROVIDE FOR AND TO ADOPT THE 2005
4 BUDGET FOR THE CITY OF LITTLE ROCK FOR THE PERIOD
5 BEGINNING JANUARY 1, 2005 AND ENDING DECEMBER 31, 2005;
6 TO APPROPRIATE RESOURCES AND USES FOR EVERY
7 EXPENDITURE ITEM AND FUND; TO AMEND LITTLE ROCK, ARK.,
8 REV. CODE § 2 -260 (1988) TO MODIFY THE TIMELINE FOR INITIAL
9 FUNDING OF THE RESTRICTED RESERVE FUND; TO DECLARE AN
10 EMERGENCY AND FOR OTHER PURPOSES.
11
12 WHEREAS, Little Rock, Ark., Rev. Code § 2 -214 (1988) mandates that the Board
13 of Directors adopt a budget for the ensuing fiscal year by not later than December 30,
14 and
15 WHEREAS, the City Manager has fulfilled the requirements of Little Rock, Ark.,
16 Rev. Code § 2 -212 (1988), and submitted for consideration of the Board of Directors a
17 proposed budget and such other explanatory information as requested by the Board,
18 and
19 WHEREAS, the Board of Directors has reviewed the proposed Fiscal Year 2005
20 budget as presented by the City Manager, made certain modifications, and is now of the
21 opinion that based upon the financial information presented to the Board, the following
22 constitutes an appropriate determination of anticipated revenues, expenditures and
23 expenses for fiscal year, 2005, and should be adopted as the 2005 Budget for the City of
24 Little Rock, Arkansas, and
25 WHEREAS, despite using its best efforts the City will not be able to meet its
[PAGE 1 OF 11]
Ordinance
2005 City Budget
1 current obligations and fully fund the Restricted Reserve Fund by December 31, 2005,
2 and therefore needs to extend the period of time to meet this obligation,
3 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF
4 THE CITY OF LITTLE ROCK, ARKANSAS:
5 Section 1. This Ordinance shall be known as the FY2005 Budget Ordinance of
6 the City of Little Rock, Arkansas for the twelve -month period beginning January 1, 2005
7 and ending December 31, 2005, reflecting estimated resources and uses as set forth
8 below. All resources herein are estimated and subject to change and all appropriation
9 uses are calculated upon available resources, and are also subject to change.
10 Section 2. Definitions. For purposes of this ordinance, the following terms
11 shall have the following meanings:
12 (A) Board of Directors means the Mayor and members of the Board of
13 Directors of the City of Little Rock, Arkansas.
14 (B) City Clerk means the City Clerk, or designated representative, of
15 the City, or if no one is officially serving in the position, the Acting City Clerk, or
16 designated representative.
17 (C) City Manager, means the City Manager, or designated
18 representative, of the City, or if no one is officially serving in the position, the
19 Acting City Manager, or designated representative, which may include an Acting
20 Assistant City Manager.
21 (D) Director of Finance means the Director of Finance and Treasurer, or
22 designated representative, for the City, or if no one is serving in the position, the
23 Acting Director of Finance and Treasurer.
24 (E) Expenditures means decreases in net financial resources under the
25 current financial resources measurement focus, and pertains to payment of
[PAGE 2 OF 11]
Ordinance
2005 City Budget
1 normal operating payments and encumbrances.
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
4 expiration — such as the depreciation of fixed assets. Within the context of this
5 budget ordinance, "proprietary organization," or "proprietary fund" refers only
6 to a method of accounting and is not used as any reference to whether the
7 enterprise is conducted in a governmental or proprietary manner, as that term is
8 understood in Arkansas law. All enterprises referred to in this ordinance shall be
9 operated by the 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
15 equity transfers, but does not include any general long -term debt proceeds and
16 operating transfers in — which are classified as "other financing sources," unless
17 these constitute a reservation of fund balances for encumbrances carried forward
18 from a prior year and the expenditure for which the fund balance was created
19 has also been carried forward; or, (2) Increases in the net total assets of a
20 Proprietary Fund Type from other than expense refunds, capital contributions
21 and residual equity transfers, but does not include operating transfer in which
22 are classified separately from revenues, unless these constitute a reservation of
23 fund balances for encumbrances carried forward from a prior year and the
24 expense for which the fund balance was created has also been carried forward.
[PAGE 3 OF 11]
Ordinance
2005 City Budget
1
Section 3. Compliance with Existing Laws, Statutes and Ordinances. This
2
ordinance has been prepared in accordance with various Arkansas statutes that deal
3
with municipal fiscal reporting requirements, the Financial Reporting Standards for the
4
City of Little Rock, Arkansas, as approved in Little Rock, Ark.,
Ordinance No. 18,605
5
(December 18, 2001), and the standards of the Government Finance Officer's
6
Association.
7
Section 4. Fiscal Year 2005 Budget. The following
respective amount for
8
every resource and appropriate use is herein set forth as follows:
9
(A) APPROPRIATE OPERATING RESOURCES:
10
General Fund
$113,394,453
11
Zoo
3,941,218
12
Golf
2,757,359
13
War Memorial Fitness Center
1,061,469
14
Concessions
128,831
15
Rivermarket
904,757
16
Waste Disposal
14,800,400
17
Street
13, 779,254
18
Parking Garages
1,741,253
19
Fleet Services
7,136,203
20
Impound
1,759,029
21
TOTAL RESOURCES
$161,404,226
22
23 (B) APPROPRIATE OPERATING USES:
24 General Fund Departments
25 General Administration, City Clerk, and
26 Racial and Cultural Diversity $ 15,956,702
[PAGE 4 OF 11]
Ordinance
2005 City Budget
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
Ordinance
2005 City Budget
Mayor & Board of Directors
283,541
City Manager
828,435
Community Programs
332,429
City Attorney
1,337,976
Cable TV
195,948
Municipal Court — Criminal
1,117,649
Municipal Court — Environmental
445,780
Municipal Court — Traffic
1,088,243
Finance
2,491,745
Human Resources
1,230,218
Office of Information Technology
2,721,648
Planning & Development
2,102,009
Housing & Neighborhood Programs
3,826,517
Public Works
1,213,972
Parks
6,437,136
Fire
26,431,092
Police
41,816,289
Parks /Zoo /Rivermarket /Concessions
3,216,018
Restricted Reserve and Contingency
500,000
Transfer to Street Fund
443,500
Future Little Rock, Special Projects, PIT
3,710,400
Vacancy Reductions
(4,332,794)
TOTAL GENERAL FUND
$113,394,453
Zoo 3,941,218
Golf 2,752,221
[PAGE 5 OF 111
I
War Memorial Fitness Center
1,058,678
2
Concessions
122,090
3
Rivermarket
903,964
4
Solid Waste
14,052,970
5
Street Fund
14,522,925
6
Parking Garages
1,749,696
7
Fleet Services
7,136,203
8
Impound
1,755,850
9
TOTAL USES
$161,390,268
10
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,
14 the Pulaski County Special School District, and Pulaski County from any affected
15 payment -in -lieu of taxes (PILOT) made to the City by a company for which an Act 9
16 Industrial Development Bonds was issued; it is estimated that the amount of these
17 resources for FY2005 is three hundred ninety -five thousand five hundred and eighty
18 dollars ($395,580).
19 Section 6. Amendment of Little Rock, Ark., Rev. Code § 2 -260 (1988). The
20 timeline for initial funding of the Restricted Reserve Fund set forth in Little Rock, Ark.,
21 Rev. Code § 2 -260 (1988) is hereby amended to read as follows:
22 Absent express action of the board of directors to the contrary, as a part of
23 the annual city budget process, revenues shall be deposited in the restricted
24 reserve fund in such amounts determined by the board of directors to assure
25 that the restricted reserve fund shall be fully funded as soon as reasonably
[PAGE 6 OF 11]
Ordinance
2005 City Budget
I possible while maintaining an annual city budget that meets the essential
2 needs of the City. It is the intention of the board of directors to meet the
3 provisions of Section 2 -259 as to size by December 31, 2007.
4 Section 7. Creation of Restricted Reserve Fund. The Board of Directors
5 mandates the creation of a Restricted Reserve Fund for the general fund and, further,
6 directs that deposits to the Restricted Reserve Fund during Fiscal Year 2005 shall total
7 not less than five hundred thousand dollars ($500,000).
8 Section 8. Creation of Sidewalk Fund. The Board of Directors grants the
9 City Manager the authority to create a 2005 Sidewalk Fund in the amount of one
10 hundred and seventy five thousand dollars ($175,000) and to use the following as the
11 source of these funds:
12 (a) Account No. 301 - 220 -13267, the 1988 Bond contingencies account in
13 the amount of one hundred thousand dollars ($100,000); and
14 (b) Account No. 304 - 220 -A122, the 1998 Bond contingencies account in
15 the amount of seventy five thousand dollars ($75,000).
16 Section 9. Definition of Significant Variance.
17 (A) In order to prepare this budget it has been necessary to estimate the
18 amount of revenue or other resources that the City will have available to it in fiscal year
19 2005, and the cost of the various expenditures and expenses that the City will incur
20 during this period.
21 (B) To assure the efficient and responsible operation of the City, and the
22 maintenance of its various programs and facilities, it is important for the Board of
23 Directors to be timely advised of an significant variance in revenues, or expenditures,
24 during the course of the fiscal year. Further, it is important for the Board of Directors,
[PAGE 7 OF 11]
Ordinance
2005 City Budget
1 the City Manager and the Director of Finance, to agree as to what constitutes a
2 "significant variance" of these items.
3 (C) It is further necessary to have a definition of "significant variance" that
4 can be reviewed on an annual basis as a part of the City budget process, and which can
5 best reflect the point at which the Board of Directors believes it should be notified that
6 such a change of circumstances has occurred in relation to any expenditure, expense,
7 fund balance, revenue, or resource.
8 (D) For Fiscal Year 2005, a "significant variance" shall be deemed to have
9 occurred if, during any reporting period, there has been an increase or decrease from
10 the budgeted amount for the period covered by a Monthly Financial Report, or a
11 Quarterly Fund Balance Report that is:
12 (1) Greater than five percent (5 %) of the amount anticipated for that
13 item for the period of time covered; and,
14 (2) More than fifty thousand dollars ($50,000) from the amount
15 anticipated for that item for the period of time covered.
16 Section 10. Timeline for Department of Finance. The timeline for events
17 related to the timely preparation of reports and statements to the Board of Directors for
18 fiscal year 2005 is attached as Exhibit A to this ordinance.
19 Section 11. Adherence to Financial Reporting Standards for the City of Little
20 Rock, Arkansas. Notwithstanding the provisions of the repealer clause set forth in
21 Section 11, nothing in this ordinance shall be deemed to mitigate or diminish the
22 requirements set forth in the Financial Reporting Standards for the City of Little Rock,
23 Arkansas, as approved in Little Rock, Ark., Ordinance No. 18,605 (December 18, 2001).
24 Section 12. Severability. In the event any title, subtitle, section, subsection,
25 subdivision, paragraph, subparagraph, item, sentence, clause, phrase, or work of this
[PAGE 8 OF 11]
Ordinance
2005 City Budget
1
2
3
4
ordinance is declared or adjudged to be invalid or unconstitutional, such declaration or
adjudication shall not affect the remaining portions of the 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.
5 Section 13. Repealer. All ordinances and resolutions, including but not
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
limited to Little Rock, Ark., Ordinance No. 19,011 (December 16, 2003) ( "the 2004
Budget ordinance "), Little Rock, Ark., Ordinance No. 18,606, § 5 (December 18, 2001),
codified as Little Rock, Ark., Rev. Code § 2 -260 (1988), and any other ordinances or
resolutions that relate to financial reporting within the City, are hereby repealed to the
extent of such inconsistency.
Section 14. Emergency Clause. Because the Board of Directors has decreed that a
budget ordinance for the ensuing fiscal year and calendar year be passed prior to the end of the
current calendar year, and such a requirement makes it imperative that the fiscal operations of
the City be in place to assure the continued provision of City services, operations, and facilities,
and because such continuation of services and the operation of facilities is essential to the public
health, safety and welfare, and, because the Board of Directors recognizes that with certain
funding demands upon the City, particularly requirements such as the creation and training of
up to sixty (60) new police positions in 2005, it is impossible to meet the self - imposed desired
timeline fully to fund the Restricted Reserve Fund, but also believes that it is essential to the
public health, safety, and welfare, formally to amend the timeline to note that the approximately
six million four hundred thousand dollars ($6,400,000.00) should meet the declared size of the
fund as soon as reasonably possible, an emergency is, declared to exist and this ordinance shall be
in full force and effect on January 1, 2005, 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.
[PAGE 9 OF 11]
Ordinance
2005 City Budget
1 PASSED: December 7, 2004
2 ATTEST:
3
4
5 Na cy Wood/,City Clerk
6 APPROVED AS TO LEGAL FORM:
7
g
9 Thomas M. Carpenter, Ci6 Attorney
10
11 //
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
[PAGE 10 of 11]
Ordinance
2005 City Budget
APPROVED: .
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
34
35
EXHIBIT A' FY 2005 BUDGET ORDINANCE FOR THE CITY OF LITTLE ROCK ARKANSAS
[NOTE: The Board of Directors recently enacted financial reporting standards for the City. Little Rock, Ark.,
Ordinance No. 18,675 (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 2005 the calendar of events is as
follows:
CALENDAR OF EVENTS RELATED TO TIMELY PREPARATION OF CITY
FINANCIAL REPORTS
WORKING DAY EVENT
(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 all 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
2005 City Budget
[PAGE 11 OF 11]