HomeMy WebLinkAbout20829 1 ORDINANCE NO. 20,829
2
3 AN ORDINANCE TO PROVIDE FOR AND TO ADOPT THE 2014
4 BUDGET FOR THE CITY OF LITTLE ROCK, ARKANSAS, FOR THE
5 PERIOD BEGINNING JANUARY 1, 2014, AND ENDING DECEMBER 31,
6 2014; TO APPROPRIATE RESOURCES AND USES FOR EVERY
7 EXPENDITURE 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 for
14 consideration of the Board of Directors a proposed budget and such other explanatory information as re-
15 quested by the Board, and
16 WHEREAS, the Board of Directors has reviewed the proposed Fiscal Year 2014 Budget as presented
17 by the Mayor and the City Manager, made certain modifications, and is now of the opinion that based upon
18 the financial information presented to the Board,the following constitutes an appropriate determination of
19 anticipated revenues, expenditures and expenses for Fiscal Year, 2014, and should be adopted as the 2014
20 Budget for the City of Little Rock, Arkansas; and,
21 WHEREAS, the Board of Directors has found that it is impractical and unfeasible to bid for the types
22 of economic development services that it needs;
23 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY
24 OF LITTLE ROCK,ARKANSAS:
25 Section 1. This ordinance shall be known as the FY2014 Budget Ordinance of the City of Little Rock,
26 Arkansas for the twelve (12)-month period beginning January 1, 2014, and ending December 31, 2014,
27 reflecting estimated resources and uses as set forth below.
28 Section 2. All resources identified within this ordinance herein are estimated and subject to change,
29 and all appropriation uses identified within this ordinance are calculated upon available resources,and are
30 also subject to change.
31 Section 3. Definitions. For purposes of this ordinance,the following terms shall have the following
32 meanings:
33 (A)Board of Directors means the Mayor and members of the Board of Directors of the City of
[Page 1 0181
1 Little Rock, Arkansas.
2 (B) City Clerk means the City Clerk, or designated representative, of the City, or if no one is
3 officially serving in the position,the Acting City Clerk, or designated representative.
4 (C) City Manager, means the City Manager, or designated representative, of the City, or if no one
5 is officially serving in the position, the Acting City Manager, or designated representative,
6 which may include an Acting Assistant City Manager.
7 (D)Director of Finance means the Director of Finance and Treasurer,or designated representative,
8 for the City,or if no one is serving in the position,the Acting Director of Finance and Treasurer.
9 (E) Expenditures means decreases in net financial resources under the current financial resources
10 measurement focus,and pertains to payment of normal operating payments and encumbrances.
11 (F) Expenses mean the cost of doing business in a proprietary organization, and can be either
12 outflows 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 enterprise
15 is conducted in a governmental or proprietary manner, as that term is understood in Arkansas
16 law. All enterprises referred to in this ordinance shall be operated by the City in its govern-
17 mental capacity.
18 (G)Fund Balance means the difference between assets and liabilities reported in the governmental
19 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
23 expenditure refunds and residual equity transfers, but does not include any general
24 long-term debt proceeds and operating transfers in—which are classified as"other financ-
25 ing sources," unless these constitute a reservation of fund balances for encumbrances
26 carried forward from a prior year and the expenditure for which the fund balance was cre-
27 ated has 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
31 reservation of fund balances for encumbrances carried forward from a prior year and the
32 expense for which the fund balance was created has also been carried forward.
[Page 2 0181
1 Section 4. Compliance with Existing Laws, Statutes and Ordinances. This ordinance has been
2 prepared in accordance with various Arkansas statutes that deal with municipal fiscal reporting require-
3 ments,the Financial Reporting Standards for the City of Little Rock, Arkansas,as approved in Little Rock,
4 Ark., Rev. Code §§ 2-245 to 260.8(1988), and the standards of the Government Finance Officer's Associ-
5 ation.
6 Section 5. Fiscal Year 2014 Budget. The following respective amount for every resource and ap-
7 propriate use is herein set forth as follows:
8 (A)APPROPRIATE OPERATING RESOURCES:
9 General Fund $184,264,530
10 Street 19,363,696
11 Waste Disposal 17,563,000
12 Parking Garages 2,224,167
13 Fleet Services 13,144,531
14 Vehicle Storage Facility 1,348.840
15 TOTAL RESOURCES $237.908.764
16 (B) APPROPRIATE OPERATING USES:
17 General Fund Departments
18 General Administration $20,296,290
19 Board of Directors 338,527
20 Community Programs 388,081
21 City Attorney 1,769,774
22 Municipal Court—Criminal 1,392,505
23 Municipal Court—Environmental 627,185
24 Municipal Court—Traffic 1,247,286
25 Finance 3,136,992
26 Human Resources 1,632,677
27 Office of Information Technology 4,358,322
28 Planning& Development 2,583,968
29 Housing&Neighborhood Programs 5,673,839
30 Public Works 1,166,482
31 Parks and Recreation 9,739,691
32 RiverMarket 1,208,675
33 Golf 2,187,165
34 Fitness and Aquatics 896,565
[Page 3 of 81
1 Zoo 6,488,801
2 Fire 45,774,586
3 Police 67,200,859
4 Transfer to Street Fund 1,082,000
5 Future Little Rock, Special Projects, PIT, Grant Match 9,074,260
6 Contingency 1,000,000
7 Vacancy Allocation(Authorized Unfilled Positions) (5.000.000)
8 TOTAL GENERAL FUND $184,264,530
9 Street Fund 19,363,696
10 Solid Waste 17,655,926
11 Parking Garages 2,224,167
12 Fleet Services 13,135,688
13 Vehicle Storage Facility 1.321.150
14 TOTAL USES 5237.965.157
15 Section 6. Outside Agency Contributions.
16 (a) The appropriation for General Administration operating uses in Section 4 above includes the fol-
17 lowing amounts for various entities with which the City contracts for public services, or in which the City
18 has an ownership interest:
19 Central Arkansas Transit Authority $8,534,663
20 Pulaski County Regional Detention Center 1,050,000
21 Arkansas Arts Center 400,000
22 Museum of Discovery 200,000
23 Chamber of Commerce 200,000
24 Metroplan 178,042
25 Downtown Partnership 160,000
26 PAGIS 135,800
27 First Tee 91,500
28 Metro Little Rock Alliance 100,000
29 Pulaski County Health Unit 56,100
30 Saint Vincent's 25,381
31 City Beautiful 2.500
32 TOTAL O TTSID A N Y ONT IBUTIONS 511.133.986
33 (b) The Board of Directors has determined that the nature and kind of services to be provided by the
34 Little Rock Regional Chamber of Commerce in terms of economic development,and the participation with
[Page 4 of 81
1 other local governments in the economic development actions of the Metropolitan Alliance, are unique,
2 and that it is impractical and unfeasible to bid for these services; therefore, the Mayor, City Manager, and
3 City Clerk, are authorized to execute agreements with these entities for economic development services in
4 an amount not to exceed that set forth in subsection (a) immediately above.
5 Section 7. PILOT Payments. In accordance with Act 497 of 1981,Act 713 of 1991,and Act 1629
6 of 2001, of the Arkansas General Assembly, the Director of Finance shall make appropriate payments to
7 the Little Rock School District, the Pulaski County Special School District, and Pulaski County from any
8 affected payment-in-lieu of taxes (PILOT) made to the City by a company for which an Act 9 Industrial
9 Development Bonds was issued; it is estimated that the gross amount of these resources for FY2014 is One
10 Million, Six Hundred Twenty-Six thousand,Three Hundred Thirty-Three Dollars($1,626,333.00).
11 Section 8.Appropriation for the Compensation of Elected Officials. This budget contains a personnel
12 appropriation for the Mayor and the Members of the Board of Directors as follows:
13 (A)Annual salary of the Mayor is $160,000, and such other compensation as required by state statute,
14 or such other amounts as may from time to time be approved during the time this ordinance is
15 effective;
16 (B) Annual compensation for each member of the Board of Directors is$18,000 plus an annual stipend
17 for expenses in the nature of office expenses in the amount of$250 per month for an annual amount
18 of$3,000, plus any amount required by federal tax laws to be assessed against a member of the
19 Board of Directors;
20 (C) In addition to these amounts, there are expenditures noted within this ordinance which document
21 the amounts paid for Mayor and Board member expenses and benefits.
22 Section 9. Definition of Significant Variance.
23 (A) In order to prepare this budget it has been necessary to estimate the amount of revenue or other
24 resources that the City will have available to it in Fiscal Year 2014,and the cost of the various expenditures
25 and expenses that the City will incur during this period.
26 (B) To assure the efficient and responsible operation of the City, and the maintenance of its various
27 programs and facilities, it is important for the Board of Directors to be timely advised of a significant
28 variance in revenues, or expenditures, during the course of the fiscal year. Further, it is important for the
29 Board of Directors,the City Manager and the Director of Finance,to agree as to what constitutes a"signif-
30 icant variance"of these items.
31 (C) It is further necessary to have a definition of"significant variance" that can be reviewed on an
32 annual basis as a part of the City budget process,and which can best reflect the point at which the Board of
33 Directors believes it should be notified that such a change of circumstances has occurred in relation to any
34 expenditure, expense, fund balance, revenue, or resource.
[Page 5 of 81
1 (D)For Fiscal Year 2014, a "significant variance" shall be deemed to have occurred if, during any
2 reporting period, there has been an increase or decrease from the budgeted amount for the period covered
3 by a Monthly Financial Report, or a Quarterly Fund Balance Report that is:
4 (i) Greater than 5%of the amount anticipated for that item for the period of time covered; and,
5 (ii) More than Fifty Thousand Dollars ($50,000.00) from the amount anticipated for that item for
6 the period of time covered.
7 Section 10. Timeline for Department of Finance. The timeline for events related to the timely
8 preparation of reports and statements to the Board of Directors for Fiscal Year 2014 is attached as Exhibit
9 A to this ordinance.
10 Section 11. Severability. In the event any title, subtitle, section, subsection, subdivision, paragraph,
11 subparagraph,item,sentence,clause,phrase,or work of this ordinance is declared or adjudged to be invalid
12 or unconstitutional,such declaration or adjudication shall not affect the remaining portions of the ordinance
13 which shall remain in full force and effect as if the portion so declared or adjudged invalid or unconstitu-
14 tional was not originally a part of this ordinance.
15 Section 12. Repealer. All ordinances and resolutions, including but not limited to Little Rock, Ark.,
16 Ordinance No. 20,671 (December 18, 2012) ("the 2013 Budget Ordinance"), and any other ordinances or
17 resolutions that relate to financial reporting within the City, are hereby repealed to the extent of such in-
18 consistency.
19 Section 13. Emergency Clause. It is imperative that a budget ordinance for the ensuing fiscal year
20 and calendar year be passed prior to the end of the current calendar year in order to assure the continued
21 provision of City services, operations, and facilities; such continuation is essential to the public health,
22 safety and welfare, an emergency is, therefore, declared to exist and this ordinance, with the exception of
23 Section 8 which deals with the compensation of the Mayor and Members of the Board of Directors, shall
24 be in full force and effect on January 1, 2014, and the various City departments shall operate immediately
25 upon its passage, and for purposes of record keeping and otherwise, as if it were in full force and effect
26 from and after the date of its passage;as to Section 8, because there is no increase in the amounts set forth
27 in this ordinance from the amounts set forth previously, as amended by Little Rock, Ark, Ordinance No.
28 20,730(May 21, 2013), then payment of the sums may continue in effect.
29 PASSED: December 17,2013
30 AT ST: APPROV 1:
31 il /
32 1 111Wr
33 `Sus tly,City Clerk Mark Stodola,Mayor
34
[Page 6 of 8]
1 APPROVED AS TO LEGAL FORM:
2
4 Thomas M. Carpenter,City Atto&i ey
5 //
6
7 //
8
9 //
10 //
11 //
12 //
13 //
14
15 //
16 //
17 //
18 //
19 //
20 //
21 //
22 u
23 //
24 //
25 u
26 //
27 //
28 //
29 //
30 u
31 II
32 //
33 u
34 //
35 //
[Page 7 of 8J
1 i ( ' i • otl \: \ . . � � • : � � : \
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 of this ordinance requires that as a part of the
5 annual budget process the Board of Directors set a timeline for action by the Department of Finance
6 to assure the timely preparation of financial reports. This timeline is to be adopted upon
7 recommendation of the City Manager after consultation with the Director of Finance and the various
8 financial institutions the City uses. This timeline is to be reviewed each year to assure that it sets
9 reasonable expectations for City staff, but at the same time,assures the preparation and publication
10 of reports to the Board of Directors as quickly as possible. Reports to the Board of Directors are
11 based upon certain events after the month-end close. The month-end close is defined as the fifteenth
12 (1561) business day after the end of the previous calendar month.For FY 2014 the calendar of events
13 is as follows:
14
15 CALENDAR OF EVENTS RELATED TO TIMELY PREPARATION OF CITY FINANCIAL
16 REPORTS
17
18 EVENT WORKING DAY
19 (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 Director present monthly report to Board of Directors
33 City Manager has monthly report posted in City website following Board presentation
34
lPage 8 of 81