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HomeMy WebLinkAbout20078I 2 ORDINANCE NO. 20,078 3 AN ORDINANCE TO PROVIDE FOR AND TO ADOPT THE 2009 BUDGET FOR THE CITY OF 4 LITTLE ROCK FOR THE PERIOD BEGINNING JANUARY 1, 2009 AND ENDING DECEMBER 5 31, 2009; TO APPROPRIATE RESOURCES AND USES FOR EVERY EXPENDITURE ITEM AND 6 FUND; TO DECLARE AN EMERGENCY AND FOR OTHER PURPOSES. 7 8 WHEREAS, Little Rock, Ark., Rev. Code § 2 -214 (1988) mandates that the Board of Directors 9 adopt a budget for the ensuing fiscal year by not later than December 30, and 10 WHEREAS, the City Manager has fulfilled the requirements of Little Rock, Ark., Rev. Code § 11 2 -212 (1988), and submitted for consideration of the Board of Directors a proposed budget 12 and such other explanatory information as requested by the Board, and 13 WHEREAS, the Board of Directors has reviewed the proposed Fiscal Year 2009 budget as 14 presented by the City Manager, made certain modifications, and is now of the opinion that 15 based upon the financial information presented to the Board, the following constitutes an ap- 16 propriate determination of anticipated revenues, expenditures and expenses for fiscal year, 17 2009, and should be adopted as the 2009 Budget for the City of Little Rock, Arkansas, 18 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE 19 ROCK, ARKANSAS: 20 Section I. This Ordinance shall be known as the FY2009 Budget Ordinance of the City of 21 Little Rock, Arkansas for the twelve -month period beginning January 1, 2009 and ending De- 22 cember 31, 2009, reflecting estimated resources and uses as set forth below. All resources 23 herein are estimated and subject to change and all appropriation uses are calculated upon 24 available resources, and are also subject to change. 25 Section 2. Definitions. For purposes of this ordinance, the following terms shall have the 26 following meanings: 27 (A) Board of Directors means the Mayor and members of the Board of Directors of the [PAGE 1 OF 9] I City of Little Rock, Arkansas. 2 (B) City Clerk means the City Clerk, or designated representative, of the City, or if no 3 one is officially serving in the position, the Acting City Clerk, or designated repre- 4 sentative. 5 (C) City Manager, means the City Manager, or designated representative, of the City, or 6 if no one is officially serving in the position, the Acting City Manager, or designated 7 representative, which may include an Acting Assistant City Manager. 8 (D) Director of Finance means the Director of Finance and Treasurer, or designated rep - 9 resentative, for the City, or if no one is serving in the position, the Acting Director of 10 Finance and Treasurer. 11 (E) Expenditures means decreases in net financial resources under the current financial 12 resources measurement focus, and pertains to payment of normal operating pay - 13 menns and encumbrances. 14 (F) Expenses mean the cost of doing business in a proprietary organization, and can be 15 either outflows or the using up of assets - cost expiration - such as the depreciation 16 of fixed assets. Within the context of this budget ordinance, "proprietary organiza- 17 tion," or "proprietary fund" refers only to a method of accounting and is not used as 18 any reference to whether the enterprise is conducted in a governmental or proprie- 19 tary manner, as that term is understood in Arkansas law. All enterprises referred to 20 in this ordinance shall be operated by the City in its governmental capacity. 21 (G) Fund Balance means the difference between assets and liabilities reported in the 22 governmental fund and represents the excess of revenues or expenditures that has 23 accumulated since the inception of the fund. 24 (H) Revenue(s) means: (1) Increases in the net current assets of a Governmental Fund 25 Type from other than expenditure refunds and residual equity transfers, but does 26 not include any general long -term debt proceeds and operating transfers in - which 27 are classified as 'other financing sources," unless these constitute a reservation of [PAGE 2 OF 9] I fund balances for encumbrances carried forward from a prior year and the expendi- 2 ture for which the fund balance was created has also been carried forward; or, (2) in- 3 creases in the net total assets of a Proprietary Fund Type from other than expense 4 refunds, capital contributions and residual equity transfers, but does not include op- 5 erating transfer in which are classified separately from revenues, unless these con - 6 stitute a reservation of fund balances for encumbrances carried forward from a prior 7 year and the expense for which the fund balance was created has also been carried 8 forward. 9 Section 3. Compliance with Existing Laws, Statutes and Ordinances. This ordinance has 10 been prepared in accordance with various Arkansas statutes that deal with municipal fiscal re- 11 porting requirements, the Financial Reporting Standards for the City of Little Rock, Arkansas, as 12 approved in Little Rock, Ark., Ordinance No. 18,605 (December 18, 2001), and the standards of 13 the Government Finance Officer's Association. 14 Section 4. Fiscal Year 2009 Budget. The following respective amount for every resource 15 and appropriate use is herein set forth as follows: 16 (A) APPROPRIATE OPERATING RESOURCES: 17 General Fund $137,449,966 18 Street 14,682,504 19 Waste Disposal 17,143,354 20 Rivermarket 946,703 21 Zoo 5,310,947 22 Golf 3,002,439 23 Jim Dailey Fitness and Aquatic Center 1,198,084 24 Concessions 114,052 25 Parking Garages 1,953,689 26 Fleet Services 10,005,334 27 Vehicle Storage Facility 1 405 1 10 [PAGE 3 OF 91 1 TOTAL RESOURCES __ $193,212,182 2 (B) APPROPRIATE OPERATING USES: 3 General Fund Departments 4 General Administration $22,851,374 5 Board of Directors 242,115 6 Community Programs 361,540 7 City Attorney 1,625,773 8 Municipal Court - Criminal 1,287,863 9 Municipal Court - Environmental 502,882 10 Municipal Court - Traffic 1,21 5,554 11 Finance 2,726,917 12 Human Resources 1,450,113 13 Office of Information Technology 3,207,958 14 Planning & Development 2,31 5,516 15 Housing & Neighborhood Programs 4,584,085 16 Public Works 1,366,405 17 Parks 7,758,842 18 Fire 32,745,675 19 Police 49,235,1 11 20 Parks /Zoo /Rivermarket /Concessions 3,422,993 21 Transfer to Street Fund 604,685 22 Future Little Rock, Special Projects, PIT, Grant Match 4,696,230 23 Vacancy Reductions (4 751 665) 24 TOTAL GENERAL FUND $137,449,966 25 Street Fund 14,682,504 26 Solid Waste 18,665,210 27 Rivermarket 946,703 [PAGE 4 OF 9] 1 Zoo 5,310,947 2 Golf 3,002,439 3 Jim Dailey Fitness and Aquatic Center 1,198,084 4 Concessions 114,052 5 Parking Garages 1,953,689 6 Fleet Services 9,971,951 7 Vehicle Storage Facility 1 499 361 8 TOTAL USES _ $194 794 06 9 Section 5.0utside Agency Contributions. The appropriation for General Administration 10 operating uses in Section 4 above includes the following amounts for various entities with 11 which the City contracts for public services, or in which the City has an ownership interest: 12 Central Arkansas Transit Authority $6,826,697 13 Pulaski County Regional Detention Center 1,547,299 14 Arkansas Arts Center 249,000 15 Museum of Discovery 249,000 16 Chamber of Commerce 200,000 17 Metroplan 157,694 18 Downtown Partnership 149,741 19 PAGIS 129,500 20 Pulaski County Health Unit 56,100 21 Saint Vincent's 25,381 22 City Beautiful 2,500 23 TOTAL OUTSIDE AGENCY CONTRIBUTIONS S9 592 912 24 Section 6. P/LOTPayments to Area Schools. In accordance with Act 497 of 1981, Act 25 713 of 1991, and Act 1629 of 2001, of the Arkansas General Assembly, the Director of Finance 26 shall make appropriate payments to the Little Rock School District, the Pulaski County Special 27 School District, and Pulaski County from any affected payment -in -lieu of taxes (PILOT) made to [PAGE 5 OF 9] 1 the City by a company for which an Act 9 Industrial Development Bonds was issued; it is esti- 2 mated that the amount of these resources for FY2009 is two hundred ninety thousand two hun- 3 dred seventy -three dollars ($290,273). 4 Section 7. Appropriation for the Compensation of Elected Officials. This budget contains a 5 personnel appropriation for the Mayor and the Members of the Board of Directors as follows: 6 (A) Annual compensation of the Mayor is $160,000, and such other amounts as may from 7 time to time be approved during the time this ordinance is effective; 8 (B) Annual compensation for each member of the Board of Directors is $12,000; 9 (C) In addition to these amounts, there are expenditures noted within this ordinance which 10 document the amounts paid for Mayor and Board member expenses and benefits. 11 Section 8. Definition of Significant Variance. 12 (A) In order to prepare this budget it has been necessary to estimate the amount of reve- 13 nue or other resources that the City will have available to it in fiscal year 2009, and the cost of 14 the various expenditures and expenses that the City will incur during this period. 15 (B) To assure the efficient and responsible operation of the City, and the maintenance of its 16 various programs and facilities, it is important for the Board of Directors to be timely advised of 17 a significant variance in revenues, or expenditures, during the course of the fiscal year. Further, 18 it is important for the Board of Directors, the City Manager and the Director of Finance, to agree 19 as to what constitutes a "significant variance" of these items. 20 (C) It is further necessary to have a definition of "significant variance" that can be reviewed 21 on an annual basis as a part of the City budget process, and which can best reflect the point at 22 which the Board of Directors believes it should be notified that such a change of circumstances 23 has occurred in relation to any expenditure, expense, fund balance, revenue, or resource. 24 (D) For Fiscal Year 2009, a "significant variance" shall be deemed to have occurred if, during 25 any reporting period, there has been an increase or decrease from the budgeted amount for the 26 period covered by a Monthly Financial Report, or a Quarterly Fund Balance Report that is: [PAGE 6 OF 91 1 (1) Greater than five percent (5%) of the amount anticipated for that item for the period 2 of time covered; and, 3 (2) More than fifty thousand dollars ($50,000) from the amount anticipated for that item 4 for the period of time covered. 5 Section 9. Time line for Department of Finance. The timeline for events related to the timely 6 preparation of reports and statements to the Board of Directors for fiscal year 2009 is attached 7 as Exhibit A to this ordinance. 8 Section 10. Severability. In the event any title, subtitle, section, subsection, subdivision, 9 paragraph, subparagraph, item, sentence, clause, phrase, or work of this ordinance is declared 10 or adjudged to be invalid or unconstitutional, such declaration or adjudication shall not affect 11 the remaining portions of the ordinance which shall remain in full force and effect as if the por- 12 tion so declared or adjudged invalid or unconstitutional was not originally a part of this ordi- 13 nance. 14 Section 11. Repealer. All ordinances and resolutions, including but not limited to Little 15 Rock, Ark., Ordinance No. 19,898 (December 21, 2007) ( "the 2008 Budget ordinance "), and any 16 other ordinances or resolutions that relate to financial reporting within the City, are hereby re- 17 pealed to the extent of such inconsistency. 18 Section 12. Emergency Clause. It is imperative that a budget ordinance for the ensuing 85- 19 cal year and calendar year be passed prior to the end of the current calendar year in order to 20 assure the continued provision of City services, operations, and facilities; such continuation is 21 essential to the public health, safety and welfare, an emergency is, therefore, declared to exist 22 and this ordinance, with the exception of Section 7 which deals with the compensation of the 23 Mayor and Members of the Board of Directors, shall be in full force and effect on January 7, 24 2009, and the various City departments shall operate immediately upon its passage, and for 25 purposes of record keeping and otherwise, as if it were in full force and effect from and after 26 the date of its passage. 27 PASSED: December 22, 2008 [PAGE 7 OF 9] 1 ATTEST: APPROVED: 2 - - - -- -- ---- - - - - -- 4 Nancy Wood Clerk Mark Stodola, Mayor 5 APPROVED AS TO LEGAL FORM: 6 7� ` 8 Thomas M. Carpenter, City A t rney [PAGE 8 OF 91 1 EXHIBIT A: FY 2009 BUDGET ORDINANCE FOR THE ITY F LITTLE ROCK, ARKANSAS 2 3 [NOTE: The Board of Directors enacted financial reporting standards for the City. Little Rock, 4 Ark., Ordinance No. 18,675 (December 18, 2001). Section 12 this ordinance requires that as a 5 part of the annual budget process the Board of Directors set a timeline for action by the De- b partment of Finance to assure the timely preparation of financial reports. This timeline is to be 7 adopted upon recommendation of the City Manager after consultation with the Director of Fi- b nance and the various financial institutions the City uses. This timeline is to be reviewed each 9 year to assure that it sets reasonable expectations for City staff, but at the same time, assures 10 the preparation and publication of reports to the Board of Directors as quickly as possible. Re- 11 ports to the Board of Directors are based upon certain events after the month -end close. The 12 month -end close is defined as the fifteenth (15th) business day after the end of the previous 13 calendar month. For FY 2009 the calendar of events is as follows: 14 15 CALENDAR OF EVENTS RELATED TO TIMELY PREPARATION OF CITY FINANCIAL REPORTS 16 17 EVENT 18 WORKING DAY 19 Department notification of deposits submitted to accounting (after the end of the calendar month) 3 20 City obtains monthly bank statement 4 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 9 24 Department reconciles book balance and investment balances 11 25 Department finalizes and enters all remaining journal entries 12 26 Department reviews and corrects work to date 13 27 Department conducts final review of information for reports 14 28 Department processes computer system reports (month -end close) 15 29 Department completes preparation of monthly reports 20 30 City Manager and Finance Director publish monthly report to Board of Directors 21 31 City Manager has monthly report posted in City website 21 [PAGE 9 OF 91