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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.
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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-
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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
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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
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25 Su n I an , City Clerk Mark Stodola, Mayor
26 APOWIVED AS TO LEGAL FORM:
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29 Thomas M. Carpenter, City Att ney
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I ExHim As FY 2012 BjjnGET OgpINANcE FOR THE ITY OF LITTLE ROCK, ARKAN4A
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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:
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15 CALENDAR OF EVENTS RELATED TO TIMELY PREPARATION OF CITY FINANCIAL
16 REPORTS
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18 EVENT
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WORKING DAY
(after the end of the calendar month)
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Department notification of deposits submitted to accounting
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City obtains monthly bank statement
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Department processes bank files to produce combined and payroll outstanding check lists
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City obtains monthly investment statement
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Department reconciles book balance and bank statements for all bank accounts
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Department reconciles book balance and investment balances
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Department finalizes and enters all remaining journal entries
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Department reviews and corrects work to date
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Department conducts final review of information for reports
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Department processes computer system reports (month -end close)
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Department completes preparation of monthly reports
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City Manager and Finance Department Director present monthly report to Board of Directors
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City Manager has monthly report posted in City website following Board presentation
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