HomeMy WebLinkAbout21521 1 ORDINANCE NO. 21,521
2
3 AN ORDINANCE TO PROVIDE FOR AND TO ADOPT THE 2018
4 BUDGET FOR THE CITY OF LITTLE ROCK, ARKANSAS, FOR THE
5 PERIOD BEGINNING JANUARY 1, 2018, AND ENDING DECEMBER
6 31, 2018; 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 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 2018 Budget as presented
17 by the Mayor and the City Manager, and is of the opinion that based upon the financial information
18 presented to the Board, the following constitutes an appropriate determination of anticipated revenues,
19 expenditures and expenses for fiscal year, 2018, and should be adopted as the 2018 Budget for the City of
20 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 FY2018 Budget Ordinance of the City of Little Rock,
24 Arkansas for the twelve (12)-month period beginning January 1, 2018, and ending December 31, 2018,
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 of
32 Little Rock,Arkansas.
33 (B) City Clerk means the City Clerk, or designated representative, of the City, or if no one is
34 officially serving in the position,the Acting City Clerk, or designated representative.
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1 (C) City Manager, means the City Manager, or designated representative, of the City, or if no
2 one is officially serving in the position, the Acting City Manager, or designated
3 representative,which may include an Acting Assistant City Manager.
4 (D)Director of Finance means the Director of Finance and Treasurer, or designated
5 representative, for the City, or if no one is serving in the position, the Acting Director of
6 Finance and Treasurer.
7 (E) Expenditures means decreases in net financial resources under the current financial
8 resources measurement focus, and pertains to payment of normal operating payments and
9 encumbrances.
10 (F) Expenses mean the cost of doing business in a proprietary organization, and can be either
11 outflows or the using up of assets — cost expiration — such as the depreciation of fixed
12 assets. Within the context of this budget ordinance, "proprietary organization," or
13 "proprietary fund" refers only to a method of accounting and is not used as any reference
14 to whether the enterprise is conducted in a governmental or proprietary manner, as that
15 term is understood in Arkansas law. All enterprises referred to in this ordinance shall be
16 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
19 accumulated 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.
23 long-term debt proceeds and operating transfers in—which are classified as"other
24 financing sources," unless these constitute a reservation of fund balances for
25 encumbrances carried forward from a prior year and the expenditure for which the
26 fund balance was created has 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
29 operating transfer in which are classified separately from revenues, unless these
30 constitute a reservation of fund balances for encumbrances carried forward from a
31 prior year and the expense for which the fund balance was created has also been
32 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
35 requirements,the Financial Reporting Standards for the City of Little Rock,Arkansas,as approved in Little
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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 2018 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(i) $208,963,275
7 Street 20,099,356
8 Waste Disposal 19,326,800
9 Parking Garages 2,747,950
10 Fleet Services 13,061,091
11 Vehicle Storage Facility 1,335,365
12 TOTAL RESOURCES $265,,533,837
13 (i) General Fund operating resources include the carry-over of Seven Hundred Eighty
14 Thousand Dollars($780,000.00)generated from 2017 one-time allocations.
15 (B) APPROPRIATE OPERATING USES:
16 General Fund Departments
17 General Administration $30,601,351
18 Board of Directors 337,241
19 Community Programs 599,306
20 City Attorney 1,838,375
21 Municipal Court—Criminal 1,312,284
22 Municipal Court—Traffic 1,235,948
23 Municipal Court—Environmental 558,459
24 Finance 3,611,965
25 Human Resources 1,900,756
26 Information Technology 5,155,305
27 Planning&Development 2,659,265
28 Housing&Neighborhood Programs 5,780,017
29 Public Works 1,100,254
30 Parks and Recreation 10,637,313
31 River Market 1,276,715
32 Golf 2,321,299
33 Fitness and Aquatics 908,180
34 Zoo 6,938,356
35 Fire 49,939,645
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1 Police 75,742,987
2 Transfer to Street Fund 194,000
3 Future Little Rock, Special Projects,PIT, Grant Match 9,814,254
4 Contingency 1,000,000
5 Vacancy Allocation(Authorized Unfilled Positions) (6,500,000)
6 TOTAL GENERAL FUND $208,963,275
7 Street Fund 20,969,356
8 Solid Waste 18,900,401
9 Parking Garages 2,512,248
10 Fleet Services 13,061,091
11 Vehicle Storage Facility 1,335,365
12 TOTAL USES $265,741,736
13 Section 6. Outside Agency Contributions. The appropriation for General Administration operating
14 uses in Section 4 above includes the following amounts for various entities with which the City contracts
15 for public services, or in which the City has an ownership interest:
16 Central Arkansas Transit Authority $9,190,757
17 Pulaski County Regional Detention Center(i) 1,550,000
18 Arkansas Arts Center(ii) 700,000
19 Museum of Discovery 230,000
20 Metroplan 178,042
21 Downtown Partnership 195,000
22 PAGIS 134,850
23 First Tee 246,500
24 Pulaski County Health Unit 56,100
25 Saint Vincent's 25,381
26 City Beautiful 2,500
27 TOTAL OUTSIDE AGENCY CONTRIBUTIONS $12,509,130
28 (i) Additional funding is provided in the local jail fine special project in the amount of
29 Four Hundred Thousand, Six Hundred Thirty-Two Dollars ($400,632.00) to bring
30 support for the Pulaski County Regional Detention Center to One Million, Nine
31 Hundred Fifty Thousand, Six Hundred Thirty-Two Dollars($1,950,632.00).
32 (ii) Funding from the One (1)-Cent Lodging Tax for parks will supplement the general
33 fund contribution to provide an additional Two Hundred Twenty-Eight Thousand,
34 Four Hundred Fifty Dollars ($228,450.00) for the Arts Center to bring total support
35 to Nine Hundred Twenty-Eight Thousand,Four Hundred Fifty Dollars($928,450.00).
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1 Section 7.PILOT Payments. In accordance with Act 497 of 1981, Act 713 of 1991, and Act 1629
2 of 2001, of the Arkansas General Assembly, the Director of Finance shall make appropriate payments to
3 the Little Rock School District, the Pulaski County Special School District, and Pulaski County from any
4 affected payment-in-lieu of taxes (PILOT) made to the City by a company for which an Act 9 Industrial
5 Development Bonds was issued;it is estimated that the gross amount of these resources for FY2018 is One
6 Million, Seven Hundred Seventy-Two Thousand, Seven Hundred Thirty-Eight Dollars($1,772,738.00).
7 Section 8. Appropriation for the Compensation of Elected Officials. This Budget contains a
8 personnel appropriation for the Mayor and the Members of the Board of Directors as follows:
9 (A)Annual compensation of the Mayor is One Hundred Sixty Thousand Dollars ($160,000.00),
10 and such other amounts as may from time-to-time be approved during the time this ordinance
11 is effective;
12 (B) Annual compensation for each member of the Board of Directors is Eighteen Thousand Dollars
13 ($18,000.00),plus an annual stipend of Three Thousand Dollars($3,000.00);
14 (C) In addition to these amounts, there are expenditures noted within this ordinance which
15 document the amounts paid for Mayor and Board member expenses and benefits.
16 Section 9. Definition of Significant Variance.
17 (A)In order to prepare this Budget it has been necessary to estimate the amount of revenue or other
18 resources that the City will have available to it in Fiscal Year 2018, and the cost of the various
19 expenditures and expenses that the City will incur during this period.
20 (B) To assure the efficient and responsible operation of the City,and the maintenance of its various
21 programs and facilities, it is important for the Board of Directors to be timely advised of a
22 significant variance in revenues, or expenditures, during the course of the fiscal year. Further,
23 it is important for the Board of Directors, the City Manager and the Director of Finance, to
24 agree as to what constitutes a"significant variance"of these items.
25 (C) It is further necessary to have a definition of"significant variance"that can be reviewed on an
26 annual basis as a part of the City budget process, and which can best reflect the point at which
27 the Board of Directors believes it should be notified that such a change of circumstances has
28 occurred in relation to any expenditure,expense,fund balance,revenue, or resource.
29 (D)For Fiscal Year 2018, a"significant variance"shall be deemed to have occurred if, during any
30 reporting period, there has been an increase or decrease from the budgeted amount for the
31 period covered by a Monthly Financial Report, or a Quarterly Fund Balance Report that is:
32 (i) Greater than 5%of the amount anticipated for that item for the period of time covered;
33 and,
34 (ii) More than Fifty Thousand Dollars ($50,000.00) from the amount anticipated for that
35 item for the period of time covered.
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1 Section 10. Timeline for Department of Finance. The timeline for events related to the timely
2 preparation of reports and statements to the Board of Directors for Fiscal Year 2018 is attached as Exhibit
3 A to this ordinance.
4 Section 11. Severability. In the event any title, subtitle, section, subsection, subdivision, paragraph,
5 subparagraph,item sentence,clause,phrase,or work of this ordinance is declared or adjudged to be invalid
J g
6 or unconstitutional,such declaration or adjudication shall not affect the remaining portions of the ordinance
7 which shall remain in full force and effect as if the portion so declared or adjudged invalid or
8 unconstitutional was not originally a part of this ordinance.
9 Section 12. Repealer. All ordinances and resolutions, including but not limited to Little Rock, Ark.,
10 Ordinance No. 21,343 (December 13, 2016) ("the 2017 Budget Ordinance"), and any other ordinances or
11 resolutions that relate to financial reporting within the City, are hereby repealed to the extent of such
12 inconsistency.
13 Section 13. Emergency Clause. It is imperative that a Budget Ordinance for the ensuing fiscal year
14 and calendar year be passed prior to the end of the current calendar year in order to assure the continued
15 provision of City services, operations, and facilities; such continuation is essential to the public health,
16 safety and welfare, an emergency is, therefore, declared to exist and this ordinance, with the exception of
17 Section 8 which deals with the compensation of the Mayor and Members of the Board of Directors, shall
18 be in full force and effect on January 1, 2018, and the various City Departments shall operate immediately
19 upon its passage, and for purposes of record keeping and otherwise, as if it were in full force and effect
20 from and after the date of its passage.
21 PASSED: ! .•tuber 19 2017
4, •
22 APPROVE):
23V 'J
,
24 921111i!r11. • C _%itaL
25 Susa: I . City Clerk Mark todola,Mayor
26 APPR►1`/1 ► - S TO LEGAL FORM:
27
28 dOIP WA- A �'
29 Thomas M. Carpenter, City Attorney
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1 EXHIBIT A
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 15th
12 business day after the end of the previous calendar month. For FY 2018 the calendar of events is as
13 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 Department notification of deposits submitted to accounting 3
21 City obtains monthly bank statement 1
22 Department processes bank files to produce combined and payroll outstanding check lists 5
23 City obtains monthly investment statement 7
24 Department reconciles book balance and bank statements for all bank accounts 9
25 Department reconciles book balance and investment balances 11
26 Department finalizes and enters all remaining journal entries 14
27 Department reviews and corrects work to date 15
28 Department conducts final review of information for reports 16
29 Department processes computer system reports(month-end close) 17
30 Department completes preparation of monthly reports 22
31 City Manager and Finance Director distribute monthly report to Board of Directors
32 City Manager has monthly report posted in City website following Board presentation
33 City Manager and Finance Director present financial reports quarterly to Board of Directors
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