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HomeMy WebLinkAbout21156 1 ORDINANCE NO. 21,156 2 3 AN ORDINANCE TO PROVIDE FOR AND TO ADOPT THE 2016 4 BUDGET FOR THE CITY OF LITTLE ROCK, ARKANSAS, FOR THE 5 PERIOD BEGINNING JANUARY 1, 2016, AND ENDING DECEMBER 6 31, 2016; 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 mandates that the Board of 11 Directors adopts a budget for the ensuing fiscal year by not later than December 30th,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 for 14 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 2016 Budget as presented 17 by the Mayor and the City Manager,made certain modifications,and is now of the opinion that based upon 18 the financial information presented to the Board,the following constitutes an appropriate determination of 19 anticipated revenues, expenditures and expenses for Fiscal Year, 2016, and should be adopted as the 2016 20 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 FY2016 Budget Ordinance of the City of Little Rock, 24 Arkansas for the twelve (12)-month period beginning January 1, 2016, and ending December 31, 2016, 25 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 following 30 meanings: 31 (A) Board of Directors means the Mayor and members of the Board of Directors of the City 32 of Little Rock,Arkansas. 33 (B) City Clerk means the City Clerk, or designated representative, of the City, or if no one is [Page 1 of 7] 1 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 3 one 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 servingthe in position,the ActingDirector of Finance P on� 7 and Treasurer. 8 (E) Expenditures means decreases in net financial resources under the current financial 9 resources measurement focus, and pertains to payment of normal operating payments and 10 encumbrances. b ances. 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. Within 13 the context of this budget ordinance, "proprietary organization," or"proprietary fund"refers only 14 to a method of accounting and is not used as any reference to whether the enterprise is conducted 15 in a governmental or proprietary manner,as that term is understood in Arkansas law.All enterprises 16 referred to in this ordinance shall be operated by the City in its governmental capacity. 17 (G) Fund Balance means the difference between assets and liabilities reported in the 18 governmental fund and represents the excess of revenues or expenditures that has accumulated 19 since the inception of the fund. 20 (H) Revenue(s) means: 21 (i) Increases in the net current assets of a Governmental Fund Type from other than 22 expenditure refunds and residual equity transfers, but does not include any general long- 23 term debt proceeds and operating transfers in — which are classified as "other financing 24 sources," unless these constitute a reservation of fund balances for encumbrances carried 25 forward from a prior year and the expenditure for which the fund balance was created has 26 also been carried forward; or, 27 (ii)Increases in the net total assets of a Proprietary Fund Type from other than expense 28 refunds, capital contributions and residual equity transfers, but does not include operating 29 transfer in which are classified separately from revenues, unless these constitute a 30 reservation of fund balances for encumbrances carried forward from a prior year and the 31 expense for which the fund balance was created has also been carried forward. 32 Section 4. Compliance with Existing Laws, Statutes and Ordinances. This ordinance has been 33 prepared in accordance with various Arkansas statutes that deal with municipal fiscal reporting 34 requirements,the Financial Reporting Standards for the City of Little Rock,Arkansas,as approved in Little [Page 2 of 7] 1 Rock, Ark., Rev. Code §§ 2-245 to 260.8 (1988), and the standards of the Government Finance Officers 2 Association. 3 Section 5. Fiscal Year 2016 Budget. The following respective amount for every resource and 4 appropriate use is herein set forth as follows: 5 (A)APPROPRIATE OPERATING RESOURCES: 6 General Fund $201,644,229 7 Street 20,557,426 8 Waste Disposal p 17,941,300 9 Parking Garages 2,570,250 10 Fleet Services 12,714,282 11 Vehicle Storage Facility 1,370,305 12 TOTAL RESOURCES $256,797,792 13 (B) APPROPRIATE OPERATING USES: 14 General Fund Departments 15 General Administration $29,977,808 16 Board of Directors 342,818 17 Community Programs 427,559 18 City Attorney 1,939,007 19 Municipal Court—Criminal 1,410,338 20 Municipal Court—Environmental 627,195 21 Municipal Court—Traffic 1,365,334 22 Finance 3,407,407 23 Human Resources 1,810,554 24 Office of Information Technology 4,843,151 25 Planning&Development 2,566,299 26 Housing&Neighborhood Programs 5,866,198 27 Public Works 1,191,100 28 Parks and Recreation 10,207,910 29 RiverMarket 1,174,745 30 Golf 2,288,313 31 Fitness and Aquatics 909,546 32 Zoo 6,810,041 33 Fire 47,365,844 34 Police 70,548,138 [Page 3 of 7] 1 Transfer to Street Fund 1,082,000 2 Future Little Rock, Special Projects, PIT, Grant Match 10,482,924 3 Contingency 1,000,000 4 Vacancy Allocation(Authorized Unfilled Positions) (6,000,000) 5 TOTAL GENERAL FUND $201,644,229 6 Street Fund 20,557,426 7 Solid Waste 16,928,866 8 Parking Garages 2,251,986 9 Fleet Services 12,714,282 10 Vehicle Storage Facility 1,359,792 11 TOTAL USES $255,456,581 12 Section 6. Outside Agency Contributions. The appropriation for General Administration 13 operating uses in Section 4 above includes the following amounts for various entities with which the City 14 contracts for public services, or in which the City has an ownership interest: 15 Central Arkansas Transit Authority $8,576,529 16 Pulaski County Regional Detention Center 1,450,000 17 Arkansas Arts Center 700,000 18 Museum of Discovery 230,000 19 Metroplan 178,042 20 Downtown Partnership 195,000 21 PAGIS 135,800 22 First Tee 191,500 23 Pulaski County Health Unit 56,100 24 Saint Vincent's 25,381 25 City Beautiful 2,500 26 TOTAL OUTSIDE AGENCY CONTRIBUTIONS $11,740,852 27 Section 7. PILOT Payments. In accordance with Act 497 of 1981, Act 713 of 1991, and Act 28 1629 of 2001,of the Arkansas General Assembly,the Director of Finance shall make appropriate payments 29 to the Little Rock School District,the Pulaski County Special School District,and Pulaski County from any 30 affected payment-in-lieu of taxes (PILOT) made to the City by a company for which an Act 9 Industrial 31 Development Bonds was issued; it is estimated that the gross amount of these resources for FY2016 is One 32 Million, Seven Hundred Seventy Thousand,Three Hundred Twenty-Five Dollars($1,770,325). 33 Section 8.Appropriation for the Compensation of Elected Officials. This budget contains a personnel 34 appropriation for the Mayor and the Members of the Board of Directors as follows: [Page 4 of 7] 1 .SA) Annual compensation of the Mayor is One Hundred Sixty Thousand Dollars(160,000.00),and 2 such other amounts as may from time to time be approved during the time this ordinance is 3 effective; 4 (B) Annual compensation for each member of the Board of Directors is Eighteen Thousand Dollars 5 ($18,000.00),plus an annual stipend of Three Thousand Dollars($3,000.00); 6 (C) In addition to these amounts, there are expenditures noted within this ordinance which 7 document the amounts paid for Mayor and Board member expenses and benefits. 8 Section 9. Definition of Significant Variance. 9 (A) In order to prepare this budget it has been necessary to estimate the amount of revenue or other 10 resources that the City will have available to it in Fiscal Year 2016,and the cost of the various 11 expenditures and expenses that the City will incur during this period. 12 (B) To assure the efficient and responsible operation of the City,and the maintenance of its various 13 programs and facilities, it is important for the Board of Directors to be timely advised of a 14 significant variance in revenues, or expenditures, during the course of the fiscal year. Further, 15 it is important for the Board of Directors, the City Manager and the Director of Finance, to 16 agree as to what constitutes a"significant variance"of these items. 17 (C) It is further necessary to have a definition of"significant variance"that can be reviewed on an 18 annual basis as a part of the City budget process, and which can best reflect the point at which 19 the Board of Directors believes it should be notified that such a change of circumstances has 20 occurred in relation to any expenditure, expense,fund balance,revenue, or resource. 21 (D) For Fiscal Year 2016,a"significant variance"shall be deemed to have occurred if, during any 22 reporting period, there has been an increase or decrease from the budgeted amount for the 23 period covered by a Monthly Financial Report, or a Quarterly Fund Balance Report that is: 24 (i) Greater than 5%of the amount anticipated for that item for the period of time covered;and, 25 (ii) More than Fifty Thousand D($50,000) from the amount anticipated for that item for the 26 period of time covered. 27 Section 10. Timeline for Department of Finance. The timeline for events related to the timely 28 preparation of reports and statements to the Board of Directors for Fiscal Year 2016 is attached as Exhibit 29 A to this ordinance. 30 Section 11. Severability. In the event any title, subtitle, section, subsection, subdivision, paragraph, 31 subparagraph,item,sentence,clause,phrase,or work of this ordinance is declared or adjudged to be invalid 32 or unconstitutional,such declaration or adjudication shall not affect the remaining portions of the ordinance 33 which shall remain in full force and effect as if the portion so declared or adjudged invalid or 34 unconstitutional was not originally a part of this ordinance. [Page 5 of 7] 1 Section 12. Repealer. All ordinances and resolutions, including but not limited to Little Rock, Ark., 2 Ordinance No. 20,977 (December 16, 2014)("The 2015 Budget Ordinance), and any other ordinances or 3 resolutions that relate to financial reporting within the City, are hereby repealed to the extent of such 4 inconsistency. 5 Section 13. Emergency Clause. It is imperative that a budget ordinance for the ensuing fiscal year 6 and calendar year be passed prior to the end of the current calendar year in order to assure the continued 7 provision of City services, operations, and facilities; such continuation is essential to the public health, 8 safety and welfare, an emergency is, therefore, declared to exist and this ordinance, with the exception of 9 Section 8 which deals with the compensation of the Mayor and Members of the Board of Directors, shall 10 be in full force and effect on January 1, 2016, and the various City departments shall operate immediately • 11 upon its passage, and for purposes of record keeping and otherwise, as if it were in full force and effect 12 from and after the date of its passage. 13 PASSED: December 15,2015 14 ATTEST: APPROVED: 15 lit!I ,----- // ,.‘ 4 . 16 sem! 411111 / 17 '4s . 1 ,Iey,City Clerk Mark Stodola,Mayor 18 APv a AS TO LEGAL FORM: 19 ,c52,<At- 20 /14914. 101-7 itl. 21 Thomas M. Carpenter,City Attor y 22 // 23 // 24 // 25 // 26 // 27 // 28 // 29 // 30 // 31 // 32 // 33 // 34 // 35 // [Page 6 of 7] 1 EXHIBIT A: FY 2016 BUDGET ORDINANCE FOR THE CITY OF LITTLE ROCK,ARKANSAS 2 3 [NOTE: The Board of Directors enacted financial reporting standards for the City. Little Rock, 4 Ark.,Rev. Code §§ 2-245 to 260.8 (1988) Section 2-260 this ordinance requires that as a part of the 5 annual budget process the Board of Directors set a timeline for action by the Department of Finance 6 to assure the timely preparation of financial reports. This timeline is to be adopted upon 7 recommendation of the City Manager after consultation with the Director of Finance and the various 8 financial institutions the City uses. This timeline is to be reviewed each year to assure that it sets 9 reasonable expectations for City Staff, but at the same time,assures the preparation and publication 10 of reports to the Board of Directors as quickly as possible. Reports to the Board of Directors are 11 based upon certain events after the month-end close. The month-end close is defined as the fifteenth 12 (15"`) business day after the end of the previous calendar month.For FY 2016 the calendar of events 13 is as follows: 14 15 CALENDAR OF EVENTS RELATED TO TIMELY PREPARATION OF CITY FINANCIAL 16 REPORTS 17 18 EVENT WORKING DAY 19 (after the end of the calendar month) 20 21 Department notification of deposits submitted to accounting 3 22 City obtains monthly bank statement 1 23 Department processes bank files to produce combined and 5 24 payroll outstanding check lists 25 City obtains monthly investment statement 7 26 Department reconciles book balance and bank statements for all bank accounts 9 27 Department reconciles book balance and investment balances 11 28 Department finalizes and enters all remaining journal entries 14 29 Department reviews and corrects work to date 15 30 Department conducts final review of information for reports 16 31 Department processes computer system reports(month-end close) 17 32 Department completes preparation of monthly reports 22 33 City Manager and Finance Director present monthly report to Board of Directors 34 City Manager has monthly report posted in City website following Board presentation 35 II [Page 7 of 7]