Loading...
HomeMy WebLinkAbout21683 1 ORDINANCE NO. 21,683 2 3 AN ORDINANCE TO PROVIDE FOR AND TO ADOPT THE 2019 4 BUDGET FOR THE CITY OF LITTLE ROCK, ARKANSAS, FOR THE 5 PERIOD BEGINNING JANUARY 1, 2019, AND ENDING DECEMBER 31, 6 2019; 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 2019 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 2019, and should be adopted as the 2019 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 FY2019 Budget Ordinance of the City of Little Rock, 24 Arkansas, for the twelve (12)-month period beginning January 1, 2019, and ending December 31, 2019, 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. [Page 1 of 7] 1 (C) City Manager, means the City Manager, or-designated representative, of the City, or if no one 2 is officially serving in the position, the Acting City Manager, or designated representative, 3 which may include an Acting Assistant City Manager. 4 (D)Director of Finance means the Director of Finance and Treasurer,or designated representative, 5 for the City,or if no one is serving in the position,the Acting Director of Finance and Treasurer. 6 (E) Expenditures means decreases in net financial resources under the current financial resources 7 measurement focus,and pertains to payment of normal operating payments and encumbrances. 8 (F) Expenses mean the cost of doing business in a proprietary organization, and can be either 9 outflows or the using up of assets—cost expiration—such as the depreciation of fixed assets. 10 Within the context of this budget ordinance, "proprietary organization," or"proprietary fund" 11 refers only to a method of accounting and is not used as any reference to whether the enterprise 12 is conducted in a governmental or proprietary manner, as that term is understood in Arkansas 13 law. All enterprises referred to in this ordinance shall be operated by the City in its 14 governmental capacity. 15 (G)Fund Balance means the difference between assets and liabilities reported in the governmental 16 fund and represents the excess of revenues or expenditures that has accumulated since the 17 inception of the fund. 18 (H)Revenue(s) means: 19 (i) Increases in the net current assets of a Governmental Fund Type from other than 20 expenditure refunds and residual equity transfers, but does not include any general 21 long-term debt proceeds and operating transfers in — which are classified as "other 22 financing sources," unless these constitute a reservation of fund balances for 23 encumbrances carried forward from a prior year and the expenditure for which the fund 24 balance was created has also been carried forward; or, 25 (ii) Increases in the net total assets of a Proprietary Fund Type from other than expense 26 refunds, capital contributions and residual equity transfers, but does not include 27 operating transfer in which are classified separately from revenues, unless these 28 constitute a reservation of fund balances for encumbrances carried forward from a prior 29 year and the expense for which the fund balance was created has also been carried 30 forward. 31 Section 4. Compliance with Existing Laws, Statutes and Ordinances. This ordinance has been 32 prepared in accordance with various Arkansas Statutes that deal with municipal fiscal reporting 33 requirements,the Financial Reporting Standards for the City of Little Rock,Arkansas,as approved in Little 34 Rock, Ark., Rev. Code §§ 2-245 to 260.8 (1988), and the standards of the Government Finance Officers 35 Association. [Page 2 of 7] 1 Section 5. Fiscal Year 2019 Budget. The following respective amount for every resource and 2 appropriate use is herein set forth as follows: 3 (A)APPROPRIATE OPERATING RESOURCES: 4 General Fund $210,623,272 5 Street 20,144,330 6 Waste Disposal 19,176,900 7 Parking Garages 2,699,750 8 Fleet Services 14,666,490 9 Vehicle Storage Facility 1,842,900 10 TOTAL RESOURCES $269,153,642 11 (B) APPROPRIATE OPERATING USES: 12 General Fund Departments 13 General Administration $27,815,347 14 Board of Directors 337,500 15 Community Programs 566,541 16 City Attorney 1,765,815 17 Municipal Court—Criminal 1,331,175 18 Municipal Court—Traffic 1,249,913 19 Municipal Court—Environmental 554,856 20 Finance 3,460,042 21 Human Resources 1,848,017 22 Office of Information Technology 5,449,495 23 Planning&Development 2,576,596 24 Housing&Neighborhood Programs 5,712,630 25 Public Works 1,060,735 26 Parks and Recreation 10,662,574 27 River Market 1,354,146 28 Golf 2,141,314 29 Fitness and Aquatics 855,474 30 Zoo 6,745,800 31 Fire 52,217,670 32 Police 78,785,071 33 Transfer to Street Fund 194,000 34 Future Little Rock, Special Projects, PIT,Grant Match 8,438,561 35 Contingency 1,000,000 [Page 3 of 7] 1 Vacancy Allocation(Authorized Unfilled Positions) (5,500,000) 2 TOTAL GENERAL FUND $210,623,272 3 Street Fund 21,599,158 4 Solid Waste 21,436,769 5 Parking Garages 2,091,606 6 Fleet Services 15,419,298 7 Vehicle Storage Facility 1,344,955 8 TOTAL USES $272,515,058 9 Section 6. Outside Agency Contributions. The appropriation for General Administration operating 10 uses in Section 4 above includes the following amounts for various entities with which the City contracts 11 for public services, or in which the City has an ownership interest, with the exception of the First Tee 12 allocation,which is included in the Golf operating uses in Section 4: 13 Rock Region Metro (Central Arkansas Transit Authority)(i) $8,398,757 14 Pulaski County Regional Detention Center(ii) 1,726,000 15 Arkansas Arts Center(iii) 0 16 Museum of Discovery 230,000 17 Metroplan 178,042 18 Downtown Partnership 195,000 19 PAGIS 134,850 20 First Tee 120,000 21 Pulaski County Health Unit 56,100 22 St.Vincent's 25,381 23 City Beautiful 2,500 24 TOTAL OUTSIDE AGENCY CONTRIBUTIONS $11,066,630 25 (i) Additional funding is provided by the Street Fund in the amount of$1,000,000, 26 bringing the total allocation for Rock Region Metro to$9,398,757. 27 (ii) Additional funding is provided in the local jail fine special project in the amount 28 of$265,595 to bring support for the Pulaski County Regional Detention Center to 29 $1,991,595. 30 (iii)Funding from the one (1)-cent Lodging Tax for Parks will provide $350,000 for 31 the Arts Center in 2019. 32 33 Section 7. PILOT Payments. In accordance with Act 497 of 1981, Act 713 of 1991, and Act 1629 34 of 2001, of the Arkansas General Assembly, the Director of Finance shall make appropriate payments to 35 the Little Rock School District,the Pulaski County Special School District, and Pulaski County from any 36 affected payment-in-lieu of taxes (PILOT) made to the City by a company for which an Act 9 Industrial [Page 4 of 7] 1 Development Bonds was issued; it is estimated that the gross amount of these resources for FY2019 is one 2 million,eight hundred seventy-three thousand, seven hundred fifty-five($1,873,755). 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 One Hundred Sixty Thousand Dollars ($160,000.00), 6 and such other amounts as may from time to time be approved during the time this ordinance 7 is effective; 8 (B) Annual compensation for each member of the Board of Directors is Eighteen Thousand Dollars 9 ($18,000.00)plus an annual stipend of Three Thousand Dollars($3,000.00); 10 (C) In addition to these amounts, there are expenditures noted within this ordinance which 11 document the amounts paid for Mayor and Board member expenses and benefits. 12 Section 9. Definition of Significant Variance. 13 (A) In order to prepare this budget it has been necessary to estimate the amount of revenue or other 14 resources that the City will have available to it in Fiscal Year 2019,and the cost of the various 15 expenditures and expenses that the City will incur during this period. 16 (B) To assure the efficient and responsible operation of the City,and the maintenance of its various 17 programs and facilities, it is important for the Board of Directors to be timely advised of a 18 significant variance in revenues, or expenditures, during the course of the fiscal year.Further, 19 it is important for the Board of Directors, the City Manager and the Director of Finance, to 20 agree as to what constitutes a"significant variance"of these items. 21 (C) It is further necessary to have a definition of"significant variance"that can be reviewed on an 22 annual basis as a part of the City budget process,and which can best reflect the point at which 23 the Board of Directors believes it should be notified that such a change of circumstances has 24 occurred in relation to any expenditure,expense,fund balance,revenue, or resource. 25 (D) For Fiscal Year 2019, a"significant variance"shall be deemed to have occurred if,during any 26 reporting period, there has been an increase or decrease from the budgeted amount for the 27 period covered by a Monthly Financial Report, or a Quarterly Fund Balance Report that is: 28 (i) Greater than 5%of the amount anticipated for that item for the period of time covered; 29 and, 30 (ii) More than Fifty Thousand Dollars ($50,000.00) from the amount anticipated for that 31 item for the period of time covered. 32 Section 10. Timeline for Department of Finance. The timeline for events related to the timely 33 preparation of reports and statements to the Board of Directors for Fiscal Year 2019 is attached as Exhibit 34 A to this ordinance. [Page 5 of 7] 1 Section 11. Severability. In the event any title, subtitle, section, subsection, subdivision, paragraph, 2 subparagraph,item,sentence,clause,phrase,or work of this ordinance is declared or adjudged to be invalid 3 or unconstitutional,such declaration or adjudication shall not affect the remaining portions of the ordinance 4 which shall remain in full force and effect as if the portion so declared or adjudged invalid or 5 unconstitutional was not originally a part of this ordinance. 6 Section 12. Repealer. All ordinances and resolutions, including but not limited to Little Rock, Ark., 7 Ordinance No. 21,521 (December 19, 2017) ("the 2018 Budget Ordinance"), and any other ordinances or 8 resolutions that relate to financial reporting within the City, are hereby repealed to the extent of such 9 inconsistency. 10 Section 13. Emergency Clause. It is imperative that a budget ordinance for the ensuing fiscal year 11 and calendar year be passed prior to the end of the current calendar year in order to assure the continued 12 provision of City services, operations, and facilities; such continuation is essential to the public health, 13 safety and welfare, an emergency is, therefore, declared to exist and this ordinance, with the exception of 14 Section 8 which deals with the compensation of the Mayor and Members of the Board of Directors, shall 15 be in full force and effect on January 1, 2019, and the various City Departments shall operate immediately 16 upon its passage, and for purposes of record keeping and otherwise, as if it were in full force and effect 17 from and after the date of its passage. 18 PASSED: December 18,2018 19 A APPROVED: 20 /1(11, // 21 UMW ilia ! 22 usan Lan' :Sty Clerk Mark Stodola,Mayor 23 APPR 6 API TO LEGAL FORM: 24 25 1"114 26 Thomas M. Carpenter, City Attorney 27 // 28 // 29 // 30 // 31 // 32 // 33 // 34 // 35 // [Page 6 of 7] 1 Exhibit A 2 3 FY 2018 BUDGET ORDINANCE FOR THE CITY OF LITTLE ROCK,ARKANSAS 4 5 [NOTE: The Board of Directors enacted financial reporting standards for the City. Little Rock, 6 Ark.,Rev. Code §§ 2-245 to 260.8 (1988) Section 2-260 this ordinance requires that as a part of the 7 annual budget process the Board of Directors set a timeline for action by the Department of Finance 8 to assure the timely preparation of financial reports. This timeline is to be adopted upon 9 recommendation of the City Manager after consultation with the Director of Finance and the various 10 financial institutions the City uses. This timeline is to be reviewed each year to assure that it sets 11 reasonable expectations for City Staff,but at the same time,assures the preparation and publication 12 of reports to the Board of Directors as quickly as possible. Reports to the Board of Directors are 13 based upon certain events after the month-end close. The month-end close is defined as the 15"' 14 business day after the end of the previous calendar month. For FY 2019 the calendar of events is as 15 follows: 16 17 CALENDAR OF EVENTS RELATED TO TIMELY PREPARATION OF CITY FINANCIAL 18 REPORTS 19 20 EVENT WORKING DAY 21 (after the end of the calendar month) 22 Department notification of deposits submitted to accounting 3 23 City obtains monthly bank statement 1 24 Department processes bank files to produce combined and payroll outstanding check lists 5 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 distribute monthly report to Board of Directors 34 City Manager has monthly report posted in City website following Board distribution 35 City Manager and Finance Director present financial reports quarterly to Board of Directors 36 [Page 7 of 7]