HomeMy WebLinkAbout21817 1 ORDINANCE NO. 21,817
2
3 AN ORDINANCE TO PROVIDE FOR AND TO ADOPT THE 2020
4 BUDGET FOR THE CITY OF LITTLE ROCK, ARKANSAS, FOR THE
5 PERIOD BEGINNING JANUARY 1, 2020, AND ENDING DECEMBER 31,
6 2020; 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 2020 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 2020, and should be adopted as the 2020 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 FY2020 Budget Ordinance of the City of Little Rock,
24 Arkansas, for the twelve (12)-month period beginning January 1, 2020, and ending December 31, 2020,
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
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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 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 representative,
6 for the City,or if no one is serving in the position,the Acting Director of Finance and Treasurer.
7 (E) Expenditures means decreases in net financial resources under the current financial resources
8 measurement focus,and pertains to payment of normal operating payments and encumbrances.
9 (F) Expenses mean the cost of doing business in a proprietary organization, and can be either
10 outflows or the using up of assets—cost expiration—such as the depreciation of fixed assets.
11 Within the context of this budget ordinance, "proprietary organization,"or"proprietary fund"
12 refers only to a method of accounting and is not used as any reference to whether the enterprise
13 is conducted in a governmental or proprietary manner, as that term is understood in Arkansas
14 State Law. All enterprises referred to in this ordinance shall be operated by the City in its
15 governmental capacity.
16 (G)Fund Balance means the difference between assets and liabilities reported in the governmental
17 fund and represents the excess of revenues or expenditures that has accumulated since the
18 inception of the fund.
19 (14)Revenue(s)means:
20 (i) Increases in the net current assets of a Governmental Fund Type from other than
21 expenditure refunds and residual equity transfers, but does not include any general
22 long-term debt proceeds and operating transfers in — which are classified as "other
23 financing sources," unless these constitute a reservation of fund balances for
24 encumbrances carried forward from a prior year and the expenditure for which the fund
25 balance was created has also been carried forward; or,
26 (ii) Increases in the net total assets of a Proprietary Fund Type from other than expense
27 refunds, capital contributions and residual equity transfers, but does not include
28 operating transfer in which are classified separately from revenues, unless these
29 constitute a reservation of fund balances for encumbrances carried forward from a prior
30 year and the expense for which the fund balance was created has also been carried
31 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
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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 as authorized in Little Rock,Ark.,Resolution No. 15,110(November 19,2019)
3 Section 5. Fiscal Year 2020 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 $212,125,253
7 Street 21,339,903
8 Waste Disposal 23,938,605
9 Parking Garages 2,962,166
10 Fleet Services 14,333,041
11 Vehicle Storage Facility 2,066,800
12 TOTAL RESOURCES $276,765,768
13 (B)APPROPRIATE OPERATING USES:
14 General Fund Departments
15 General Administration $22,580,232
16 Board of Directors 338,411
17 Community Programs 462,179
18 City Attorney 1,585,138
19 Municipal Court—Criminal 1,348,842
20 Municipal Court—Traffic 1,246,377
21 Municipal Court—Environmental 537,099
22 Finance 3,588,285
23 Human Resources 1,860,866.
24 Office of Information Technology 5,538,495
25 Planning&Development 2,601,213
26 Housing&Neighborhood Programs 5,566,012
27 Public Works 1,074,107
28 Parks and Recreation 9,994,977
29 River Market 1,356,920
30 Golf 1,532,166
31 Fitness and Aquatics 886,292
32 Zoo 6,638,508
33 Fire 53,230,908
34 Police 80,209,890
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1 Debt Service 5,505,534
2 Transfer to Street Fund 194,000
3 FUTURE Little Rock, Special Projects,PIT,Grant Match 8,748,802
4 Contingency 1,000,000
5 Vacancy Allocation(Authorized Unfilled Positions) (5,500,000)
6 TOTAL GENERAL FUND $212,125,253
7 Street Fund 21,339,903
8 Solid Waste 23,938,605
9 Parking Garages 2,168,420
10 Fleet Services 14,333,041
11 Vehicle Storage Facility 1,735,627
12 TOTAL USES $275,640,849
13 (C) The FUTURE Little Rock, Special Projects, PIT, Grant Match set forth in Section 5(B)
14 above includes an appropriation of Four Million, Seven Hundred Fifty Thousand Dollars
15 ($4,750,000.00) for Children,Youth and Family Special Projects, of which a minimum 10% is to
16 be used for the Community Schools Model, including targeted wrap-around services for students
17 and their families.
18 Section 6. Outside Agency Contributions. The appropriation for operating uses in Section 5 above
19 includes the following amounts for various entities with which the City contracts for public services, or in
20 which the City has an ownership interest include the following:
21 (A)Rock Region Metro(Central Arkansas Transit Authority) $10,195,734
22 (B) Pulaski County Regional Detention Center 2,479,760
23 (C)Arkansas Arts Center 700,000
24 (D)Museum of Discovery 192,000
25 (E) Metroplan 178,042
26 (F) Downtown.Partnership 145,000
27 (G)PAGIS 134,850
28 (H)Pulaski County Health Unit 56,100
29 (I) SCI St.Vincent 25,381
30 (J) City Beautiful 2,500
31 TOTAL OUTSIDE AGENCY CONTRIBUTIONS $14,109,367
32 Section 7.PILOT Payments. In accordance with Act 497 of 1981, Act 713 of 1991, and Act 1629 of
33 2001, of the Arkansas General Assembly,the Director of Finance shall make appropriate payments to the
34 Little Rock School District, the Pulaski County Special School District, and Pulaski County from any
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1 affected payment-in-lieu of taxes (PILOT) made to the City by a company for which an Act 9 Industrial
2 Development Bonds was issued; it is estimated that the gross amount of these resources for FY2020 is One
3 Million,Eight Hundred Fourteen Thousand,Eight Hundred Seventy-Nine Dollars($1,814,879.00).
4 Section 8. Appropriation for the Compensation of Elected Officials. This budget contains a personnel
5 appropriation for the Mayor and the Members of the Board of Directors as follows:
6 (A)Annual compensation of the Mayor is One Hundred Sixty Thousand Dollars ($160,000.00),
7 and such other amounts as may from time-to-time be approved during the time this ordinance
8 is effective;
9 (B) Annual compensation for each member of the Board of Directors is Eighteen Thousand Dollars
10 ($18,000.00),plus an annual stipend of Three Thousand Dollars($3,000.00);
11 (C) In addition to these amounts, there are expenditures noted within this ordinance which
12 document the amounts paid for Mayor and Board member expenses and benefits.
13 Section 9.Definition of Significant Variance.
14 (A)In order to prepare this budget it has been necessary to estimate the amount of revenue or other
15 resources that the City will have available to it in Fiscal Year 2020, and the cost of the various
16 expenditures and expenses that the City will incur during this period.
17 (B) To assure the efficient and responsible operation of the City,and the maintenance of its various
18 programs and facilities, it is important for the Board of Directors to be timely advised of a
19 significant variance in revenues, or expenditures,during the course of the fiscal year.Further,
20 it is important for the Board of Directors, the City Manager and the Director of Finance, to
21 agree as to what constitutes a"significant variance"of these items.
22 (C)It is further necessary to have a definition of"significant variance"that can be reviewed on an
23 annual basis as a part of the City budget process, and which can best reflect the point at which
24 the Board of Directors believes it should be notified that such a change of circumstances has
25 occurred in relation to any expenditure,expense,fund balance,revenue, or resource.
26 (D)For Fiscal Year 2020,a"significant variance"shall be deemed to have occurred if,during any
27 reporting period, there has been an increase or decrease from the budgeted amount for the
28 period covered by a Monthly Financial Report,or a Quarterly Fund Balance Report that is:
29 (i) Greater than 5%of the amount anticipated for that item for the period of time covered;
30 and,
31 (ii) More than Fifty Thousand Dollars ($50,000.00) from the amount anticipated for that
32 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 2020 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
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. 21,683 (December 18, 2018) ("the 2019 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, 2020, 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: December 3,2019
22 A�l' APPROVED:
23 4Ail
24 is 2L,
25 an ity Clerk Frank Scott,Jr.,Mayor
26 ' 'RO : ! TO LEGAL FORM:
27
28 J • �..
29 Thomas M. Carpenter,City Attorne'
30 //
31 //
32 //
33 //
34 //
35 //
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1 EXHIBIT A: FY 2020 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 last
12 business day of the calendar month that is two months following the end of the reporting period. The
13 two-month closing period is required to accommodate the schedule for receipt of revenue from the
14 State,County and utility providers. For FY2020 the calendar of events is as follows:
15 CALENDAR OF EVENTS RELATED TO TIMELY PREPARATION OF CITY FINANCIAL
16 REPORTS
17 EVENT WORKING DAY
18 (after the end of the calendar month)
19 Department notification of deposits submitted to accounting 3
20 City obtains monthly bank statement 1
21 Department processes bank files to produce combined and payroll outstanding check lists 5
22 City obtains monthly investment statement 7
23 Department reconciles book balance and bank statements for all bank accounts 25
24 Department reconciles book balance and investment balances 30
25 Department finalizes and enters all remaining journal entries 38
26 Department reviews and corrects work to date 40
27 Department conducts final review of information for reports 42
28 Department processes computer system reports(month-end close) 43
29 Department completes preparation of monthly reports 45
30 City Manager and Finance Director distribute monthly report to Board of Directors
31 City Manager has monthly report posted in City website following Board distribution
32 City Manager and Finance Director present financial reports quarterly to Board of Directors
33
34
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