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HomeMy WebLinkAbout20515I 2 ORDINANCE NO. 20,515 3 AN ORDINANCE TO PROVIDE FOR AND TO ADOPT THE 2012 4 BUDGET FOR THE CITY OF LITTLE ROCK FOR THE PERIOD 5 BEGINNING JANUARY 1, 2012, AND ENDING DECEMBER 31,2012; 6 TO APPROPRIATE RESOURCES AND USES FOR EVERY EX- 7 PENDITURE 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 30`h, 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 14 for 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 2012 Budget as presented 17 by the Mayor and the City Manager, made certain modifications, and is now of the opinion that based 18 upon the financial information presented to the Board, the following constitutes an appropriate determina- 19 tion of anticipated revenues, expenditures and expenses for fiscal year, 2012, and should be adopted as 20 the 2012 Budget for the City of 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 FY2012 Budget Ordinance of the City of Little 24 Rock, Arkansas for the twelve (12) -month period beginning January 1, 2012, and ending December 31, 25 2012, 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 follow - 30 ing 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 offi- I cially 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 representa- 6 tive, for the City, or if no one is serving in the position, the Acting Director of Finance and 7 Treasurer. 8 (E) Expenditures means decreases in net financial resources under the current financial resources 9 measurement focus, and pertains to payment of normal operating payments and encumbranc- 10 es. 11 (F) Expenses mean the cost of doing business in a proprietary organization, and can be either out - 12 flows or the using up of assets — cost expiration — such as the depreciation of fixed assets. 13 Within the context of this budget ordinance, "proprietary organization," or "proprietary fund" 14 refers only to a method of accounting and is not used as any reference to whether the enter - 15 prise is conducted in a governmental or proprietary manner, as that term is understood in Ar- 16 kansas law. All enterprises referred to in this ordinance shall be operated by the City in its 17 governmental capacity. 18 (G) Fund Balance means the difference between assets and liabilities reported in the govemmen- 19 tal fund and represents the excess of revenues or expenditures that has accumulated since the 20 inception of the fund. 21 (H) Revenue(s) means: 22 (i) Increases in the net current assets of a Governmental Fund Type from other than ex- 23 penditure refunds and residual equity transfers, but does not include any general long - 24 term debt proceeds and operating transfers in — which are classified as "other financing 25 sources," unless these constitute a reservation of fund balances for encumbrances carried 26 forward from a prior year and the expenditure for which the fund balance was created has 27 also been carried forward; or, 28 (ii) Increases in the net total assets of a Proprietary Fund Type from other than expense 29 refunds, capital contributions and residual equity transfers, but does not include operating 30 transfer in which are classified separately from revenues, unless these constitute a reserva- 31 tion of fund balances for encumbrances carried forward from a prior year and the expense 32 for which the fund balance was created has also been carried forward. 33 Section 4. Compliance with Existing Laws, Statutes and Ordinances. This ordinance has been 34 prepared in accordance with various Arkansas statutes that deal with municipal fiscal reporting require- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 ments, the Financial Reporting Standards for the City of Little Rock, Arkansas, as approved in Little Rock, Ark., Rev. Code §§ 2 -245 to 260.8 (1988), and the standards of the Government Finance Officer's Association. Section 5. Fiscal Year 2012 Budget. The following respective amount for every resource and ap- propriate use is herein set forth as follows: (A) APPROPRIATE OPERATING RESOURCES: General Fund $158,559,815 Street 16,551,612 Waste Disposal 16,804,395 River Market 1,063,880 Zoo 6,344,304 Golf 2,776,182 Jim Dailey Fitness and Aquatic Center 1,112,146 Parking Garages 1,856,000 Fleet Services 11,667,454 Vehicle Storage Facility TOTAL RESOURCES 1,326,100 (B) APPROPRIATE OPERATING USES: 5218,061,888 General Fund Departments General Administration $21,821,608 Board of Directors 236,721 Community Programs 375,610 City Attorney 1,620,798 Municipal Court — Criminal 1,358,190 Municipal Court — Environmental 546,736 Municipal Court — Traffic 1,187,972 Finance 2,753,231 Human Resources 1,494,036 Office of Information Technology 4,140,165 Planning & Development 2,392,680 Housing & Neighborhood Programs 4,678,013 Public Works 1,124,698 Parks 8,528,829 Fire 36,255,791 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Police 55,007,824 Parks /Zoo /River Market 4,659,342 Transfer to Street Fund 886,071 Transfer to Waste Disposal Fund 480,240 Transfer to Police/Fire Pension Funds 1,460,531 Future Little Rock, Special Projects, PIT, Grant Match 11,050,729 Vacancy Allocation (Authorized Unfilled Positions) (3,500,000) TOTAL GENERAL FUND $158,559,815 Street Fund 16,551,612 Solid Waste 17,154,395 River Market 1,164,180 Zoo 6,584,304 Golf 2,870,282 Jim Dailey Fitness and Aquatic Center 1,350,071 Parking Garages 2,043,861 Fleet Services 11,667,454 Vehicle Storage Facility TOTAL USES 1,326,100 %219.272.n7 Section 6. Outside Agency Contributions. The appropriation for General Administration operat- ing uses in Section 4 above includes the following amounts for various entities with which the City con- tracts for public services, or in which the City has an ownership interest: Central Arkansas Transit Authority $7,511,153 Pulaski County Regional Detention Center 1,463,000 Arkansas Arts Center 300,000 Museum of Discovery 200,000 Chamber of Commerce 200,000 Metroplan 163,484 Downtown Partnership 125,000 PAGIS 129,500 Pulaski County Health Unit 56,100 Saint Vincent's 25,381 City Beautiful 2,500 1 TOTAL OUTSIDE AGENCY CONTRIBUTIONS S10 176 118 2 Section 7. PILOT Payments. In accordance with Act 497 of 1981, Act 713 of 1991, and Act 1629 3 of 2001, of the Arkansas General Assembly, the Finance Department Director shall make appropriate 4 payments to the Little Rock School District, the Pulaski County Special School District, and Pulaski 5 County from any affected payment -in -lieu of taxes (PILOT) made to the City by a company for which an 6 Act 9 Industrial Development Bonds was issued; it is estimated that the gross amount of these resources 7 for FY2012 is one million, three hundred eighty thousand, seven hundred ninety -three dollars 8 ($1,380,793). 9 Section 8. Appropriation for the Compensation of Elected Officials. This budget contains a person - 10 nel appropriation for the Mayor and the Members of the Board of Directors as follows: 11 (A) Annual compensation of the Mayor is $160,000, and such other amounts as may from time to 12 time be approved during the time this ordinance is effective; 13 (B) Annual compensation for each member of the Board of Directors is $12,000; 14 (C) In addition to these amounts, there are expenditures noted within this ordinance which document 15 the amounts paid for Mayor and Board member expenses and benefits. 16 Section 9. Definition of Significant Variance. 17 (A) In order to prepare this budget it has been necessary to estimate the amount of revenue or other 18 resources that the City will have available to it in fiscal year 2012, and the cost of the various expendi- 19 tures and expenses that the City will incur during this period. 20 (B) To assure the efficient and responsible operation of the City, and the maintenance of its various 21 programs and facilities, it is important for the Board of Directors to be timely advised of a significant var- 22 iance in revenues, or expenditures, during the course of the fiscal year. Further, it is important for the 23 Board of Directors, the City Manager and the Finance Department Director, to agree as to what consti- 24 tutes a "significant variance" of these items. 25 (C) It is further necessary to have a definition of "significant variance" that can be reviewed on an 26 annual basis as a part of the City budget process, and which can best reflect the point at which the Board 27 of Directors believes it should be notified that such a change of circumstances has occurred in relation to 28 any expenditure, expense, fund balance, revenue, or resource. 29 (D) For Fiscal Year 2012, a "significant variance" shall be deemed to have occurred if, during any 30 reporting period, there has been an increase or decrease from the budgeted amount for the period covered 31 by a Monthly Financial Report, or a Quarterly Fund Balance Report that is: 32 (i) Greater than 5% of the amount anticipated for that item for the period of time covered; and, 33 (ii) More than Fifty Thousand Dollars ($50,000) from the amount anticipated for that item for the 34 period of time covered. I 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 2012 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 inva- 6 lid or unconstitutional, such declaration or adjudication shall not affect the remaining portions of the ordi- 7 nance which shall remain in full force and effect as if the portion so declared or adjudged invalid or un- 8 constitutional 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. 20,376 (December 14, 20 10) ( "the 2011 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 in- 12 consistency. 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 contin- 15 ued provision of City services, operations, and facilities; such continuation is essential to the public 16 health, safety and welfare, an emergency is, therefore, declared to exist and this ordinance, with the ex- 17 ception of Section 8 which deals with the compensation of the Mayor and Members of the Board of Direc- 18 tors, shall be in full force and effect on January 1, 2012, and the various City Departments shall operate 19 immediately upon its passage, and for purposes of record keeping and otherwise, as if it were in full force 20 and effect from and after the date of its passage. 21 PASSED: December 13, 2011 22 ATTEST: APPROVE 23 24 25 Su n I an , City Clerk Mark Stodola, Mayor 26 APOWIVED AS TO LEGAL FORM: 27 28 l 29 Thomas M. Carpenter, City Att ney 30 31 32 // 33 // 34 // I ExHim As FY 2012 BjjnGET OgpINANcE FOR THE ITY OF LITTLE ROCK, ARKAN4A 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 Finance Department 6 to assure the timely preparation of financial reports. This timeline is to be adopted upon recom- 7 mendation of the City Manager after consultation with the Finance Department Director and the 8 various financial institutions the City uses. This timeline is to be reviewed each year to assure that it 9 sets reasonable expectations for City Staff, but at the same time, assures the preparation and publi- 10 cation of reports to the Board of Directors as quickly as possible. Reports to the Board of Directors 11 are based upon certain events after the month -end close. The month -end close is defined as the 15th 12 business day after the end of the previous calendar month. For FY 2012 the calendar of events is as 13 follows: 14 15 CALENDAR OF EVENTS RELATED TO TIMELY PREPARATION OF CITY FINANCIAL 16 REPORTS 17 18 EVENT 19 WORKING DAY (after the end of the calendar month) 20 21 Department notification of deposits submitted to accounting 3 22 City obtains monthly bank statement 1 23 Department processes bank files to produce combined and payroll outstanding check lists 5 24 City obtains monthly investment statement 7 25 Department reconciles book balance and bank statements for all bank accounts 9 26 Department reconciles book balance and investment balances 11 27 Department finalizes and enters all remaining journal entries 14 28 Department reviews and corrects work to date 15 29 Department conducts final review of information for reports 16 30 Department processes computer system reports (month -end close) 17 31 Department completes preparation of monthly reports 22 32 City Manager and Finance Department Director present monthly report to Board of Directors 33 City Manager has monthly report posted in City website following Board presentation 34 //