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RESOLUTION NO. 10,071
3 A RESOLUTION TO DIRECT THE CITY MANAGER TO
4 PRESENT A BUDGET FOR THE 1998 FISCAL YEAR THAT
5 DOES NOT DEPEND ON OR TREAT CARRYOVER MONIES
6 AND CURRENT RESERVE ACCOUNTS AS REVENUES FOR
7 PURPOSES OF REVENUE PROJECTS; AND FOR OTHER
8 PURPOSES.
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10 WHEREAS, the Board of Directors is currently engaged in the budget process for
11 1998; and
12 WHEREAS, the Arkansas Constitution prohibits deficit spending by municipalities
13 during any fiscal year; and
14 WHEREAS, the City has not engaged in deficit spending but, on occasion, has
15 treated carryover monies from a prior year and funds in reserve accounts as revenues for
16 purposes of assuring a balance between revenues and expenditures; and
17 WHEREAS, this practice is not the most fiscally conservative and sound policy to
18 follow, particularly when these carryovers monies cannot be accurately calculated, thus
19 creating a situation where the Board of Directors, in the middle of a budget year, may have
20 to make drastic reductions in expenditures, and possibly in personnel, in order to comply
21 with the Arkansas constitutional limitations on public spending; and
22 WHEREAS, the time to make decisions on cutbacks should be at the beginning of
23 a budget cycle as opposed to the middle or end of a period.
24 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
25 OF THE CITY OF LITTLE ROCK, ARKANSAS:
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SECTION 1. In the preparation of the 1998 budget, the City Manager may not use
any anticipated carryover funds or any funds currently held in any reserve accounts in
calculating anticipated City revenues, so that any budget presented to and ultimately
adopted by the Board of Directors will reflect that City expenditures shall not exceed
independent City receipts of revenues.
ADOPTED: September :2 1997
ATTEST:
ROBBIE HANCOCK
CITY CLERK
APPROVED AS TO LEGAL FORM:
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THOMAS M. CARPENTEIAJ
CITY ATTORNEY
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JI AILEY
MAYOR