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ORDINANCE NO. 19,657
3 AN ORDINANCE TO PROVIDE FOR AND TO ADOPT THE 2007 BUDGET FOR THE
4 CITY OF LITTLE ROCK FOR THE PERIOD BEGINNING JANUARY 1, 2007 AND
5 ENDING DECEMBER 31, 2007; TO APPROPRIATE RESOURCES AND USES FOR
6 EVERY EXPENDITURE ITEM AND FUND; TO DECLARE AN EMERGENCY AND FOR
7 OTHER PURPOSES.
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9 WHEREAS, Little Rock, Ark., Rev. Code § 2 -214 (1988) mandates that the Board of Directors
10 adopt a budget for the ensuing fiscal year by not later than December 30, and
11 WHEREAS, the City Manager has fulfilled the requirements of Little Rock, Ark., Rev. Code §
12 2 -212 (1988), and submitted for consideration of the Board of Directors a proposed budget
13 and such other explanatory information as requested by the Board, and
14 WHEREAS, the Board of Directors has reviewed the proposed Fiscal Year 2007 budget as
15 presented by the City Manager, made certain modifications, and is now of the opinion that
16 based upon the financial information presented to the Board, the following constitutes an ap-
17 propriate determination of anticipated revenues, expenditures and expenses for fiscal year,
18 2007, and should be adopted as the 2007 Budget for the City of Little Rock, Arkansas,
19 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE
20 ROCK, ARKANSAS:
21 Section 1. This Ordinance shall be known as the FY2007 Budget Ordinance of the City of
22 Little Rock, Arkansas for the twelve -month period beginning January 1, 2007 and ending De-
23 cember 31, 2007, reflecting estimated resources and uses as set forth below. All resources
24 herein are estimated and subject to change and all appropriation uses are calculated upon
25 available resources, and are also subject to change.
26 Section 2. Definitions. For purposes of this ordinance, the following terms shall have the
27 following meanings:
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I (A) Board of Directors means the Mayor and members of the Board of Directors of the
2 City of Little Rock, Arkansas.
3 (B) City Clerk means the City Clerk, or designated representative, of the City, or if no
4 one is officially serving in the position, the Acting City Clerk, or designated repre-
5 sentative.
6 (C) City Manager, means the City Manager, or designated representative, of the City, or
7 if no one is officially serving in the position, the Acting City Manager, or designated
8 representative, which may include an Acting Assistant City Manager.
9 (D) Director of Finance means the Director of Finance and Treasurer, or designated rep -
10 resentative, for the City, or if no one is serving in the position, the Acting Director of
11 Finance and Treasurer.
12 (E) Expenditures means decreases in net financial resources under the current financial
13 resources measurement focus, and pertains to payment of normal operating pay -
14 ments and encumbrances.
15 (F) Expenses mean the cost of doing business in a proprietary organization, and can be
16 either outflows or the using up of assets - cost expiration - such as the depreciation
17 of fixed assets. Within the context of this budget ordinance, "proprietary organiza-
18 tion," or "proprietary fund" refers only to a method of accounting and is not used as
19 any reference to whether the enterprise is conducted in a governmental or proprie-
20 tary manner, as that term is understood in Arkansas law. All enterprises referred to
21 in this ordinance shall be operated by the City in its governmental capacity.
22 (G) Fund Balance means the difference between assets and liabilities reported in the
23 governmental fund and represents the excess of revenues or expenditures that has
24 accumulated since the inception of the fund.
25 (H) Revenue(s) means: (1) Increases in the net current assets of a Governmental Fund
26 Type from other than expenditure refunds and residual equity transfers, but does
27 not include any general long -term debt proceeds and operating transfers in - which
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1 are classified as "other financing sources," unless these constitute a reservation of
2 fund balances for encumbrances carried forward from a prior year and the expendi-
3 ture for which the fund balance was created has also been carried forward; or, (2) In-
4 creases in the net total assets of a Proprietary Fund Type from other than expense
5 refunds, capital contributions and residual equity transfers, but does not include op-
6 erating transfer in which are classified separately from revenues, unless these con-
7 stitute a reservation of fund balances for encumbrances carried forward from a prior
8 year and the expense for which the fund balance was created has also been carried
9 forward.
10 Section 3. Compliance with Existing Laws, Statutes and Ordinances. This ordinance has
11 been prepared in accordance with various Arkansas statutes that deal with municipal fiscal re-
12 porting requirements, the Financial Reporting Standards for the City of Little Rock, Arkansas, as
13 approved in Little Rock, Ark., Ordinance No. 18,605 (December 18, 2001), and the standards of
14 the Government Finance Officer's Association.
15 Section 4. Fiscal Year 2007 Budget. The following respective amount for every resource
16 and appropriate use is herein set forth as follows:
17 (A) APPROPRIATE OPERATING RESOURCES:
18 General Fund $129,019,645
19 Zoo 4,490,912
20 Golf 3,01 5,076
21 Jim Dailey Fitness and Aquatic Center 1,110,657
22 Concessions 1 21 ,1 74
23 Rivermarket 887,039
24 Waste Disposal 16,092,048
25 Street 14,649, 782
26 Parking Garages 1,944,212
27 Fleet Services 9,1 74,784
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Vehicle Storage Facility
1,658,395
TOTAL RESOURCES
_x_82,163,724
(B) APPROPRIATE OPERATING USES:
General Fund Departments
General Administration, City Clerk, and
Racial and Cultural Diversity
$ 19,909,147
Mayor and Board of Directors
290,244
City Manager
960,190
Community Programs
383,651
City Attorney
1,463,007
Cable TV
211,096
Municipal Court - Criminal
1,236,1 71
Municipal Court - Environmental
485,103
Municipal Court - Traffic
1,167,128
Finance
2,645,844
Human Resources
1,320,764
Office of Information Technology
2,898,1 55
Planning & Development
2,192,452
Housing & Neighborhood Programs
4,214,629
Public Works
1,326,293
Parks
7,240,993
Fire
30,485,1 55
Police
46,000,243
Parks /Zoo / Rive rmarket /Concessions
3,889,998
Restricted Reserve and Contingency
556,000
Transfer to Street Fund
604,685
Future Little Rock, Special Projects, PIT
4,364,195
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1 Vacancy Reductions (4,830,730)
2 TOTAL GENERAL FUND $129,014,413
3 Zoo 4,490,912
4 Golf 3,01 5,076
5 Jim Dailey Fitness and Aquatic Center 1,1 10,657
6 Concessions 1 21 ,1 74
7 Rivermarket 887,039
8 Solid Waste 16,725,433
9 Street Fund 14,633,968
10 Parking Garages 2,251,760
11 Fleet Services 9,1 74,755
12 Vehicle Storage Facility 1,658,395
13 TOTAL USES _ $183,083,582
14 Section 5. P/LOTPayments to Area Schools. In accordance with Act 497 of 1981, Act 713 of
15 1991, and Act 1629 of 2001, of the Arkansas General Assembly, the Director of Finance shall
16 make appropriate payments to the Little Rock School District, the Pulaski County Special School
17 District, and Pulaski County from any affected payment -in -lieu of taxes (PILOT) made to the
18 City by a company for which an Act 9 Industrial Development Bonds was issued; it is estimated
19 that the amount of these resources for FY2007 is one hundred seventy -six thousand two hun-
20 dred and nineteen dollars ($176,219).
21 Section 6. Creation of Restricted Reserve Fund. The Board of Directors mandates the crea-
22 tion of a Restricted Reserve Fund for the General Fund and, further, directs that deposits to the
23 Restricted Reserve Fund during Fiscal Year 2007 shall total not less than five hundred thousand
24 dollars ($500,000).
25 Section 7. Definition of Significant Variance.
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I (A) In order to prepare this budget it has been necessary to estimate the amount of reve-
1 nue or other resources that the City will have available to it in fiscal year 2007, and the cost of
3 the various expenditures and expenses that the City will incur during this period.
4 (B) To assure the efficient and responsible operation of the City, and the maintenance of its
5 various programs and facilities, it is important for the Board of Directors to be timely advised of
6 a significant variance in revenues, or expenditures, during the course of the fiscal year. Further,
7 it is important for the Board of Directors, the City Manager and the Director of Finance, to agree
8 as to what constitutes a "significant variance" of these items.
9 (C) It is further necessary to have a definition of "significant variance" that can be reviewed
10 on an annual basis as a part of the City budget process, and which can best reflect the point at
11 which the Board of Directors believes it should be notified that such a change of circumstances
12 has occurred in relation to any expenditure, expense, fund balance, revenue, or resource.
13 (D) For Fiscal Year 2007, a "significant variance" shall be deemed to have occurred if, during
14 any reporting period, there has been an increase or decrease from the budgeted amount for the
15 period covered by a Monthly Financial Report, or a Quarterly Fund Balance Report that is:
16 (1) Greater than five percent (5%) of the amount anticipated for that item for the period
17 of time covered; and,
18 (2) More than fifty thousand dollars ($50,000) from the amount anticipated for that item
19 for the period of time covered.
20 Section 8. Time line for Department of Finance. The timeline for events related to the timely
21 preparation of reports and statements to the Board of Directors for fiscal year 2007 is attached
22 as Exhibit A to this ordinance.
23 Section 9. Severability. In the event any title, subtitle, section, subsection, subdivision,
24 paragraph, subparagraph, item, sentence, clause, phrase, or work of this ordinance is declared
25 or adjudged to be invalid or unconstitutional, such declaration or adjudication shall not affect
26 the remaining portions of the ordinance which shall remain in full force and effect as if the por-
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1 tion so declared or adjudged invalid or unconstitutional was not originally a part of this ordi-
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nance.
Section 10. Repealer. All ordinances and resolutions, including but not limited to Little
Rock, Ark., Ordinance No. 19,459 (December 13, 2005) ( "the 2006 Budget ordinance "), and any
other ordinances or resolutions that relate to financial reporting within the City, are hereby re-
pealed to the extent of such inconsistency.
Section 11. Emergency Clause. It is imperative that a budget ordinance for the ensuing fis-
cal year and calendar year be passed prior to the end of the current calendar year in order to
assure the continued provision of City services, operations, and facilities; such continuation is
essential to the public health, safety and welfare, an emergency is, therefore, declared to exist
and this ordinance shall be in full force and effect onjanuary 1, 2007, and the various City de-
partments 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.
PASSED: December 19, 2006 ,
ATTEST: APPROVED:
17 ?cy 18 N oo , City Clerk
19 APPROVED AS TO LEGAL FORM:
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22 Thomas M. Carpenter, City A6rney
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Jim D - y, Mayor
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EXHIBIT A: FY 2007 BUDGET ORDINANCE FOR THE CITY OF LITTLE K. _.. Roc KAN
[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. Re-
ports to the Board of Directors are based upon certain events after the month -end close. The
month -end close is defined as the fifteenth (15th) business day after the end of the previous
calendar month. For FY 2007 the calendar of events is as follows:
CALENDAR OF EVENTS RELATED TO TIMELY PREPARATION OF CITY FINANCIAL REPORTS
EVENT WORKING DAY
(after the end of the calendar month)
Department notification of deposits submitted to accounting 3
20 City obtains monthly bank statement
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Department processes bank files to produce combined and payroll outstanding check lists 5
City obtains monthly investment statement 7
Department reconciles book balance and bank statements for all bank accounts 9
Department reconciles book balance and investment balances 1 1
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
City Manager has monthly report posted in City website 21
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