2015 Annual Operating Budget
City of Little Rock, Arkansas
About the Cover: On September 25, 2014, the new 12th Street Station officially opened. This
44,000 square foot building houses various divisions of the Little Rock Police Department and
has commercial space available. The station will become the City of Little Rock’s first building to
receive the LEED Silver designation, continuing the City’s commitment to sustainability.
The 12th Street Station serves as an anchor in the revitalization efforts in Little Rock’s central
core. It is a symbol of the City’s commitment to the 12th Street corridor and is spurring interest
in increased commercial investment in the area.
Funding for the $12.5 million project came from the City’s 3/8-cent capital sales tax, the special
projects fund, and a grant from the Arkansas Economic Development Commission. The 12th
Street Station was designed by Roark Perkins Perry Yelvington Architects. It was constructed by
a joint venture of ADEVCO Construction and East-Harding Construction.
Cover photo provided by Roark Perkins Perry Yelvington Architects.
City of Little Rock, Arkansas 2015 Operating Budget
City of Little Rock
2015 Annual Operating Budget
Bruce T. Moore
City Manager
Prepared by:
Department of Finance
Sara Lenehan, Finance Director
LaVerne DuVall, Budget Officer
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The enclosed 2015 Annual Budget is presented for your use and reference. The
annual budget is an appropriation document that authorizes spending for the
current year. Additionally, the budget document provides information concerning
the City’s organization structure and the City’s fiscal position.
The online version of the 2015 budget document and budget documents for
previous years can be found on the City of Little Rock’s website located at:
www.littlerock.org.
If you have any comments, suggestions for improvement, or questions
concerning the City’s annual budget, please contact the Budget Office at (501)
371-4559. Thank you for your interest in the City of Little Rock.
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The Government Finance Officers Association of the United States and Canada (GFOA)
presented an award for Distinguished Budget Presentation to the City of Little Rock,
Arkansas for its annual budget document for the fiscal year beginning January 1, 2014.
In order to receive this award, a government unit must publish a budget document that
meets program criteria as a policy document, as an operation guide, as a financial plan,
and as a communications medium.
The award is valid for a period of one year only. We believe our current budget document
continues to conform to program requirements, and we are submitting it to GFOA to
determine its eligibility for another award.
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TABLE OF CONTENTS
INTRODUCTION Page
Title Page ............................................................................................................ 1
Budget Award ...................................................................................................... 3
Table of Contents ................................................................................................. 5
Little Rock at a Glance ......................................................................................... 9
City of Little Rock Board of Directors ................................................................. 10
How to Use the Budget Document .................................................................... 11
Management Team ............................................................................................ 15
City of Little Rock Organizational Chart by Fund Responsibilities ..................... 17
City of Little Rock Operating Fund Structure ..................................................... 18
City Manager’s Transmittal Letter ...................................................................... 21
Overall City Goals and Objectives ................................................................. 35
THE BUDGET PROCESS
The General Government Budget Process ....................................................... 39
Amending the Budget ........................................................................................ 42
Budget Policies .................................................................................................. 43
Other Budget Procedures .............................................................................. 44
FINANCIAL STRUCTURE
Little Rock's Financial Structure ......................................................................... 47
Funds Controlled by the Governing Body .......................................................... 47
Fiscal Policies .................................................................................................... 52
Other Agencies .................................................................................................. 58
BUDGET SUMMARIES
Budget Summaries ........................................................................................ 61
2015 Operating Fund Budget Summaries Graph .............................................. 62
General Fund Activity Graph ............................................................................. 63
Budget Summary by Fund Type .................................................................... 64
General Government Summary. .................................................................... 65
Special Revenue Funds................................................................................. 66
Capital Project Funds. ................................................................................... 69
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TABLE OF CONTENTS (CONTINUED)
Enterprise Funds ........................................................................................... 72
Internal Service Fund .................................................................................... 74
Fiduciary Funds ............................................................................................. 75
Debt Service Funds ....................................................................................... 78
2015 Long Term Forecast ............................................................................. 81
REVENUES
All Funds Operating Revenue Sources Graph .................................................. 85
All Funds Operating Revenue Summary ........................................................... 86
General Fund Summary of Revenue ................................................................. 87
All Funds Operating Revenue Detail ................................................................. 88
Revenue Trends ................................................................................................ 93
General Fund Revenue Sources and Trends Graph ....................................... 108
EXPENDITURES
All Funds Expenditures by Classification Graph .............................................. 109
All Funds Department Budgets Summary ....................................................... 110
Summary of General Government Appropriations Graph ............................... 111
General Fund Summary Graph ....................................................................... 112
Operating Budget Detail ................................................................................... 113
Staffing Summaries .......................................................................................... 117
Other General Fund Budget Expenditures ...................................................... 120
Service Program Graph ................................................................................... 121
Service Program Category .............................................................................. 122
Public Safety Revenue and Expenditure Comparisons ................................... 124
Public Safety Operating Expenditures as a Percentage of General Fund ..... 125
CAPITAL IMPROVEMENTS
Capital Funding. ............................................................................................... 127
Capital Project Funds Provided by Bond Issues ............................................. 127
Capital Project Funds Provided by Other Sources .......................................... 128
2015 Capital Improvements ......................................................................... 133
2015 Major Capital Projects ........................................................................ 134
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TABLE OF CONTENTS (CONTINUED)
Significant Routine Capital Expenditures ............................................. 134
Significant Non-Routine Capital Expenditures ..................................... 134
Other Significant Non-Recurring Capital Improvements ...................... 135
Capital Funding Activity Graphs .................................................................. 152
DEBT MANAGEMENT
Debt Management ....................................................................................... 153
City’s Legal Debt Margin ............................................................................. 153
Debt Applicable to Debt Limit 2004 – 2014 .................................................. 155
Summary of Bond Indebtedness .................................................................. 155
Future Debt Service ..................................................................................... 156
GENERAL FUND DEPARTMENTS
Mayor ............................................................................................................... 159
General Administrative .................................................................................... 163
Board of Directors ............................................................................................ 169
Community Programs ...................................................................................... 173
City Attorney .................................................................................................... 179
District Court First Division .......................................................................... 185
District Court Second Division ..................................................................... 191
District Court Third Division ............................................................................. 197
Finance ............................................................................................................ 203
Human Resources ........................................................................................... 211
Information Technology ................................................................................... 217
Planning and Development ............................................................................. 223
Housing and Neighborhood Programs ........................................................... 229
Public Works General ...................................................................................... 235
Parks and Recreation ...................................................................................... 241
River Market .................................................................................................... 247
Golf. .................................................................................................................. 251
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TABLE OF CONTENTS (CONTINUED)
Jim Dailey Fitness and Aquatic Center ............................................................ 257
Zoo .................................................................................................................. 263
Fire .................................................................................................................. 269
Police ............................................................................................................... 275
SPECIAL REVENUE FUND DEPARTMENT
Public Works Street ......................................................................................... 281
INTERNAL SERVICE FUND DEPARTMENT
Fleet Services .................................................................................................. 287
ENTERPRISE FUND DEPARTMENTS
Vehicle Storage Facility ................................................................................... 293
Waste Disposal ................................................................................................ 299
APPENDIX
State and City Budget Statutes ........................................................................ 305
Statistical Information ....................................................................................... 309
Glossary of Key Budget Terms ........................................................................ 319
Glossary of Key Acronyms Terms ................................................................... 326
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LITTLE ROCK AT A GLANCE
Two hundred years ago, the first permanent settlement was established in what is now known
as Little Rock. Since 1812, Little Rock has grown from one person to become the Capital City
of Arkansas with a population of 193,524. The metropolitan area population is 699,757 with
more than 1 million people living within 70 miles of Little Rock.
The City is named for La Petite Roche, a rock formation on the banks of the Arkansas River.
It created a natural harbor which made Little Rock an early center of business and commerce.
Today, that tradition continues as Little Rock is home to several large corporations. Among
the City’s major industries are technology, healthcare, retail, manufacturing and government.
The presence of these industries helps to explain the City’s lower than average unemployment
rate of approximately 5.9%.
New businesses and housing opportunities are bringing people back to the City’s core to live,
shop, work and play. The River Market district is home to many restaurants, shops and offices
as well as attractions such as the Clinton Presidential Center and Park, several other
museums, and an expanding nationally-recognized bike trail system. In addition, the Main
Street Creative Corridor, MacArthur Park area, SoMA (South Main) and renovation of
Robinson Center Music Hall are some of the other exciting projects in the City’s core.
Redevelopment continues in the City’s older neighborhoods and the City is experiencing new
growth in areas to the west and southwest.
Medical facilities in the Little Rock area provide efficient, comprehensive service to more than
two million individuals throughout the state. The major area hospitals provide bed space for
over 2,800 patients. Included are a large number of specialty clinics and outpatient surgery
centers that are continuing to expand.
Diverse and quality educational opportunities are available in Little Rock. The University of
Arkansas for Medical Sciences continues to garner international attention for ground breaking
medical research and procedures. The University of Arkansas at Little Rock (UALR) is a
metropolitan university educating 13,000 students. The University’s five colleges, seven
institutes with a wide range of degree offerings - graduate certificates, master’s degrees,
doctorates including the juris doctorate degree offered at the UALR Bowen School of Law. In
addition, Little Rock is the home of Philander Smith College and Arkansas Baptist College,
two historically black colleges that are leading exciting revitalization initiatives in their
surrounding areas.
Situated along the southern bank of the Arkansas River, Little Rock is located where the Delta
meets the Ouachita and Ozark mountain ranges. With lakes and streams inside the city limits
and nearby, outdoor recreational options are almost unlimited. Residents and visitors alike
enjoy hiking, camping, boating, hunting, fishing, golf, tennis, swimming, and soccer.
The Little Rock region offers wonderful opportunities for visitors: A City rich in history and
culture; many recreational opportunities; downtown entertainment; an energetic business
climate; and a major emphasis on quality of life initiatives for our citizens and visitors.
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Director Dean Kumpuris
Position Eight
Director Gene Fortson
Position Nine
Director Joan Adcock
Position Ten
Director Brad Cazort
Ward Four
Director Doris Wright
Ward Six
Director B. J. Wyrick
Ward Seven
Director Erma Hendrix
Ward One
Director Ken Richardson
Ward Two
Director Kathy Webb
Ward Three
Mayor Mark Stodola
Vice Mayor Lance Hines
Ward Five
Board of Directors
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City of Little Rock, Arkansas 2015 Operating Budget
HOW TO USE THE BUDGET DOCUMENT
This section is designed to explain and simplify the use of this document. It will
acquaint you with the types of information you can expect to find such as:
Sources of funding for City Services
Where and how resources are utilized
Services provided by City Departments
Policies and objectives for the upcoming year
Definition - What is a Budget Document?
The budget document presents the City’s financial management plan for the
coming fiscal year. The budget outlines the day-to-day functions of City
departments for a one-year period and includes planned expenditures for major
capital projects. The Mayor is responsible for enforcing the spending limits
established in this plan.
Each year, the City establishes a budget for operations in the coming fiscal year,
January 1 to December 31. The budget is based on estimates of projected
revenues and other funding sources. Appropriations for City programs are
recommended based on available resources and priorities set by the City Board
of Directors.
As required by law, the Mayor submits a recommended budget to the Board of
Directors. The Board of Directors conducts an extensive review of the
recommended budget and holds several public hearings to receive citizen input.
Once any necessary modifications are made, the Board of Directors adopts the
Budget Ordinance. Upon completion, the Budget Document is published.
The budget must be adopted on or before December 30. A calendar of events
for budget development activities for fiscal year 2015 is included in this document
to more adequately describe the budget development process.
The 2015 Basic Budget is comprised of four major fund types: the General Fund,
Special Revenue Funds, an Internal Service Fund and Enterprise Funds.
The General Fund is utilized to account for revenues and expenditures for the
regular day-to-day operations of the City. The primary sources of revenue for the
General Fund are local sales taxes, property taxes, and utility franchise fees.
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City of Little Rock, Arkansas 2015 Operating Budget
Departments in the General Fund are organized as follows:
General Administration
Board of Directors
Community Programs
City Attorney
District Court First Division
District Court Second Division
District Court Third Division
Finance
Human Resources
Information Technology
Planning & Development
Housing & Neighborhood Programs
Public Works
Parks & Recreation
River Market
Golf
Jim Dailey Fitness & Aquatics
Zoo
Fire
Police
The other major fund types are described below:
1. Special Revenue Funds – These funds are utilized to account for revenues
that are legally restricted to expenditures for specific purposes, e.g., street
fund and grant funded programs.
2. Enterprise Funds – Proprietary funds in which the services provided are
principally supported through charges to the users of the services, e.g., solid
waste fund, vehicle storage facility and parking garages.
3. Internal Services Fund – Funds that provide services to other parts of the City
organization, e.g., motor pool, vehicle maintenance and insurance.
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City of Little Rock, Arkansas 2015 Operating Budget
Payments to the Internal Services Fund are not reflected as transfers, but are
included as line items within the budgets of the departments in all operating
funds.
Operating Flow of Funds
Revenues are deposited into the General Fund as a result of specific activities.
For example:
General Fund Enterprise Funds
Property Taxes Service Rates
Sales Taxes Sanitation Fees
Licenses & Permits Compost Sales
Expenditures are made from the General Fund to support activities. For
example:
General Fund
General Fund Departments - Police, Fire, Parks & Recreation, etc.
Personnel, supplies and materials, repairs and maintenance, contractual,
capital outlay, debt service, and transfers out.
Enterprise Fund
Enterprise Funds – Waste Disposal, Vehicle Storage Facility, and Parking
Garages.
Personnel, supplies and materials, repairs and maintenance, contractual,
closure/post closure, depreciation, debt service, and transfers out.
Departments within the General Fund, Special Revenue Funds, and Enterprise
Funds make payments into the Internal Service Fund for Fleet operations and
vehicle and equipment maintenance.
Capital Budget
The Capital Budget consists of major capital projects, which often require more
than one year to complete and place in service. Examples of capital projects
include street and drainage construction, building construction, and park
development. A description of the source of funding for capital projects is
included in the Capital Improvements section of this document. In addition, this
section includes the estimated funds required for the ongoing operation and
maintenance of the assets resulting from the capital improvement projects.
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City of Little Rock, Arkansas 2015 Operating Budget
The completion of certain capital projects may be delayed for a period of time if
corresponding operating and maintenance funds are not available.
Debt Service Flow of Funds
The City issues debt after one of the following:
Approval by City Board to issue Temporary Notes, Certification of Obligations
or Revenue Bonds.
Successful completion of a Bond Election.
Funds generated from the sale of debt obligations are allocated to individual
special projects within the capital project funds. When a project is completed and
the project account closed, unused funds may be directed to retirement of the
debt service obligation. The Debt Service Funds are primarily supported by
property tax millages, which require voter approval, for the express purpose of
debt retirement. Other revenue sources for debt retirement include franchise
fees and system revenues. The Debt Service Funds initiate payments of principal
and interest to the bond purchasers. A description of the source of funding for
debt retirement and a discussion of the City’s legal debt margin is included in the
Debt Management section of this document.
Format for Budget Expenditures
A summary of budgeted operating expenditures and personnel is included in the
Expenditure section of this document. Following the summary information, each
Department’s organizational chart, mission statement, expenditure budget,
staffing summary, 2014 priorities and results, 2015 goals, and applicable service
measures are presented.
Major Categories of expenditures include the following:
Personnel (Salaries, Wages and Employee Fringe Benefits)
Supplies and Materials
Repairs and Maintenance
Contractual Services
Closure/Post Closure
Capital Outlay
Depreciation
Debt Service
Transfers Out
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City of Little Rock, Arkansas 2015 Operating Budget
MANAGEMENT TEAM
Mark Stodola Mayor
Bruce T. Moore City Manager
James E. Jones Assistant City Manager
Dana Dossett Director of Community Programs
Tom Carpenter City Attorney
Alice Lightle District Court First Division Judge
Victor Fleming District Court Second Division Judge
Mark Leverett District Court Third Division Judge
Sara Lenehan Director of Finance
Stacey Witherell Director of Human Resources
Randy Foshee Director of Information Technology
Tony Bozynski Director of Planning & Development
Andre Bernard Director of Housing & Neighborhood Programs
Jon Honeywell Director of Public Works
Truman Tolefree Director of Parks & Recreation
Gregory Summers Fire Chief
Kenton Buckner Police Chief
Mike Blakely Director of Zoo
Wendell Jones Director of Fleet Services
Budget Report Production, Analyst, and Graphics
LaVerne DuVall Budget Officer
Silas Roaf Budget Management Analyst
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City Manager
Assistant City Manager
Fire
Police
Fleet Services
Vehicle Storage Enterprise
Housing and
Neighborhood Programs
Information Technology
City Attorney
Human Resources
Public Works
Building Services
Street Fund
Waste Disposal Enterprise
Planning and Development
City Clerk
Community Programs
Finance
Parking Garages
Federal Programs
Parks and Recreation
Parks and Recreation
RiverMarket
Golf
Jim Dailey Fitness and Aquatics
Center
Citizens
Mayor and Board of Directors
Boards and Commissions
Zoo
City of Little Rock Organizational Chart
by Fund Responsibilities
District Courts
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OVERVIEW
General Fund:
Little Rock citizens passed an additional one (1)-cent local sales tax in September
2011 that was effective on January 1, 2012. Faced with significant challenges with
stagnant revenue in many areas due to the lingering effects of the economic
downturn, and one of the lowest local tax rates in the State, citizens supported the
new tax initiative. The City held several public hearings in each Ward to discuss
priority needs associated with Public Safety, Public Works, Jobs and Economic
Development, Parks and Recreation, Zoo and Tourism, and other priorities,
including fleet replacement, information technology needs, pension funding, and
public transportation. The priority needs were divided between on-going operating
needs and capital needs. The five-eighths (5/8)-cent permanent increase in sales
tax for operations is reflected in the FY15 Adopted Budget. The three-eighths (3/8)-
cent sales tax for capital projects, which expires in ten (10) years (2021), is
discussed in detail in the capital section of the budget document. In addition, in a
special election held on September 11, 2012, Little Rock citizens approved the
issuance of capital improvement bonds not to exceed $105 million for street and
drainage improvements. Up to $73.5 million of the bonds are dedicated to street
improvements with the remaining $31.5 million available for drainage improvements
throughout the City. The bonds are secured by a three (3)-mill ad valorem tax on
taxable property located within the City of Little Rock. The City issued $58,105,000
in bonds on July 24, 2013. A second series of bonds will likely be issued in 2016 or
2017.
The General Fund 2015 Operating Budget includes several significant changes from
the original 2014 Operating Budget. The 2015 Budget and the 2014 Amended
Budget include transfers in from the 2012-2021 Capital Improvements Fund (3/8-
Cent Sales Tax) to fund the principal portion of debt service due on short-term notes
that were issued to accelerate key capital projects funded by the sales tax. The
transfer in for debt service was not included in the original 2014 Adopted Budget.
This adjustment represents $6,379,582 of the transfer in revenue and related debt
service expense in the 2015 Operating Budget and accounts for $5,155,851 of the
increase from the original 2014 Adopted Budget to the 2014 Amended Budget. Debt
service on the notes is included in the General Administrative Department of the
General Fund.
Sales Tax continues to be the leading revenue source for the City at approximately
50% of general fund revenues. The City’s sales tax is composed of a one and one-
eighth (1-1/8)-cent local tax on gross receipts, which includes the half (1/2)-cent
sales tax in effect since 1994, combined with the new five-eighths (5/8)-cent
operating sales tax effective January 1, 2012, as well as a per capita allocation of a
one (1)-cent County tax and State Turnback Funds. The three-eighths (3/8)-cent
sales tax for capital projects is not reflected in the operating budget; however, it is
reported in a separate capital projects fund. Revenue from the operating portion of
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the new sales tax is committed primarily to filling vacant Police Officer positions,
supporting the twelve (12) new Fire positions for the West Little Rock Fire Station
that opened in 2012, maintaining grant-funded positions in the Police and Fire
Departments and the addition of Code Enforcement Officers. Also included is
funding for neighborhood-based/community initiatives of $5.5 million, increased
funding for building maintenance, expanded park maintenance, Zoo deferred
maintenance, operations and staffing, annual fleet replacement, information
technology staffing and maintenance, and new transit routes. Many of the initiatives
supported by the new sales tax were implemented during 2012 and are maintained
in 2015. Changes to the Arkansas Sales and Use Tax Law known as the
“streamlined sales tax” took effect beginning January 1, 2008. Sales tax revenues
are distributed based on where the purchaser takes receipt or delivery of the product
or service. In addition, local tax caps on most single transactions are no longer
applicable when City and County Sales and Use Taxes are collected. The local tax
cap continues to apply to the first $2,500 per item on the sale of motor vehicles,
aircraft, watercraft, modular homes, manufactured homes, or mobile homes.
Businesses, schools, governments and charitable organizations are able to recover
the tax paid on single transactions over the previous cap amount through a rebate
program. The program allows such tax payers a period of up to six (6) months from
the date of the transaction in which to claim the rebate. The rebate period will
expand to twelve (12) months under recently enacted State legislation. State Statute
restricts the level of tax information available to municipalities which makes
forecasting sales and use tax revenues very difficult. Growth in sales tax receipts
compared to the same period a year ago were volatile throughout the year. Based
on growth experienced in the first ten (10) months of 2014, combined with an
anticipated reduction in the State sales turnback, the projected growth from the 2014
Amended Budget includes 0.55% for the City’s portion of County sales tax revenue,
1.12% for the City’s local sales tax, and a reduction of 15.2% in State turnback
revenue, or a blended growth rate of 0.50%. Based on the final actual sales tax
revenue for 2014, including strong results for December sales, the City will need to
experience growth of 0.25% to achieve the 2015 Budget of $96,684,815.
Franchise fees from local utilities comprise approximately 15% of general fund
revenues. Franchise fees from Entergy Corporation, the electric utility, decreased
approximately 3.43% in 2014 due to lower usage and the discontinuance of a rate
adjustment associated with the utility’s exit from a multi-state agreement in which it
had operated for decades to equalize rates among member states. Entergy
franchise fees are expected to increase by 3.9% in 2015, due to an announced rate
increase of 3.4% and a return to normal weather patterns. Storm recovery charges
passed on to customers and weather impact rates and usage. Franchise fees from
Centerpoint Entergy, the gas utility, increased approximately 10.6% in 2014 with an
increase in usage of approximately 6%. Revenues in 2015 from Centerpoint Entergy
are expected to increase approximately 1% from the Amended 2014 Budget.
Franchise fees from telecommunication companies and long-distance are expected
to decrease approximately 3-5% after several years of decline due to on-going
competition from wireless companies. There are no scheduled rate increases
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included in the 2015 Budget for Central Arkansas Water and Little Rock
Wastewater. Wastewater revenues increased approximately $300,000 in 2014 due
to a 7% rate increase, but are projected to be flat in 2015. Central Arkansas Water
announced proposed rate increases for wholesale customers who sell to private
utilities for the years 2016 and 2017. In addition, Little Rock Wastewater has rate
increases scheduled in 2016, 2018 and 2019 to comply with the terms of the Sierra
Club lawsuit to reduce sanitary sewer overflows in Little Rock.
Property Tax revenues account for approximately 14% of General Fund revenues.
Little Rock recently received its Original Charge for 2014 Property Taxes to be
collected in 2015. The Original Charge is approximately 3.4% over last year’s value
and represents the total amount assessed on real estate and personal property for
the previous year. The 2015 Budget reflects an increase in Property Tax revenues
of approximately 4% from the 2014 Budget. In addition, the 2015 Budget and the
2014 Amended Budget include separate 1-mill property tax levies dedicated for the
Police and Fire Pension Plans. I am pleased that overall property values in Little
Rock were maintained during the recent economic downturn and continue to
experience reasonable growth. The City has not experienced the decline in values
that were prevalent in other parts of the country.
City employees have demonstrated their dedication and professionalism by
providing quality service to the citizens of Little Rock. The General Fund Budget
supports 1,683 full-time equivalent (FTE) positions, a net increase of fourteen (14)
FTEs compared to 2014 staffing levels. Staffing includes twenty-seven (27) Police
positions previously funded by a grant award under the American Recovery and
Reinvestment Act COPS Program and eighteen (18) Fire fighters previously funded
by a SAFER grant. In addition, special projects and grant awards support forty-one
(41) employees. However, approximately 100 of the budgeted General Fund
positions were vacant during 2014. This represents a significant improvement over
the 152 budgeted General Fund positions that were kept vacant in 2011. With the
passage of the new sales tax, positions were filled and new positions have been
added, particularly in the areas of Public Safety and Parks and Recreation. The
2015 Operating Budget expenditures include $139,939,883 in personnel cost, net
of an anticipated $6 million in savings from authorized but vacant positions. The
2015 Budget does not include salary increases. One-time lump sum bonuses for
full-time employees will be awarded based on salary ranges, providing the greatest
benefit to employees with the lowest salaries. Employees with a salary of $40,000
or below will receive a bonus of $1,000. Employees with a salary from $40,001 to
$60,000 will receive a $750 bonus. Finally, employees with a salary of $60,001 or
greater will receive a $500 bonus. Non-uniform employees currently on probation
will receive the bonus after successful completion of their six (6)-month probationary
period, and probationary uniform employees will receive their bonus after successful
completion of their respective recruit school. The City Manager, the Assistant City
Manager, and Department Directors were excluded from the bonus program. In
addition, Police and Fire personnel covered by labor agreements will receive
scheduled step and grade increases. The bonuses will be partially funded by the
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carryover of $550,000 in funds from the 2014 contingency allocation. Negotiations
with the American Federation of State, County and Municipal Employees
(AFSCME), the International Association of Fire Fighters and the Fraternal Order of
Police were ongoing at year-end. In July 2015, revenue and expenditure trends will
be reevaluated to determine if salary adjustments are possible. Health insurance
costs will decrease approximately 11%, due to change in insurance programs. The
City will join the Municipal League Health plan in 2015. Employee contributions for
dependent coverage will decrease by approximately $1,000 per year. In addition,
the budget includes health insurance coverage for designated part-time employees
in accordance with requirements of the Affordable Care Act. Benefit changes
approved by the State Legislature increased pension costs for Fire and Police
uniformed personnel. Pension costs increased from 19.58% to 20.58% of payroll
for uniformed Fire personnel and from 16.23% to 17.23% of payroll for uniformed
Police personnel. In addition, the City merged administration of the closed local
Police Pension Fund with the LOPFI Plan which will require an additional
contribution of 9.23% of payroll for uniformed Police personnel. However, the
additional contribution will not result in any additional cost to the City. The dedicated
1-mill property tax levy, annual City sales tax contribution of $500,000, and other
dedicated fines and fees are expected to fund the 9.23% contribution. The City
implemented a new Defined Benefit Pension Plan for non-uniform personnel on
January 1, 2014. The plan resulted from a yearlong review of options to improve
the retirement plan for non-uniform employees. There will be no change in 2015 to
the City contribution of 9% of salary to the plan, matched by employee contributions
of 4.5%. Pension costs for Court Clerks decreased slightly from 14.88% to 14.76%.
Vacant positions are budgeted at the mid-range salary for the position’s grade,
providing some budget flexibility in the recruiting process. Overall, with the changes
in salary, employee bonuses, benefits and the increased number of filled positions,
the 2015 Budget for personnel cost will increase approximately 2% from the 2014
Budget.
Fleet and fuel costs are projected to increase approximately $153,000 in 2015. The
2015 Fuel Budget is based on estimated unleaded and diesel fuel per gallon prices
averaging $3.25. The cost per gallon of fuel has decreased with the utilization of
new fuel blends. In addition, the City opened a new Compressed Natural Gas
Station (CNG) in 2014 and is converting some vehicles to CNG. While the fuel cost
per gallon has decreased, the number of deployed vehicles has increased with
additional staffing in Police and Code Enforcement. The budget for fleet parts
increased due to the aging fleet; however, as the annual fleet replacement schedule
is resumed with the passage of the sales tax, repair and maintenance cost will be
reduced.
The City issued a $5.9 million short-term financing note in 2014 to accelerate public
safety projects associated with the three-eighths (3/8)-cent sales tax for capital
projects. Short-term financing notes are authorized under Amendment No. 78 to
the Arkansas Constitution for the acquisition, construction and installation of real
and tangible personal property having an expected useful life of more than one (1)-
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year. The notes are repaid over a period of five (5) years from general revenues.
The principal portion of the new note will be funded by a transfer to the General
Fund from the proceeds of the three-eighths (3/8)-cent sales tax for capital projects.
Principal and interest payments are included in the General Fund Budget. Debt
service payments will increase by approximately $1,235,500 in 2015 due to the
addition of the 2014 note.
Funding of the Pulaski County Jail was continued in order to provide space for
prisoners in accordance with the City’s primary focus on Public Safety. In addition,
an extra allocation is available from a $20 local jail fine to contribute toward
operations for expanded Pulaski County Jail space. Combined, the funding for the
jail will increase by 5% to $1,854,576.
A Homeless Services Task Force was established in 2006 to end chronic
homelessness within our community. The City of North Little Rock has partnered
with Little Rock to financially fund the Jericho Way Day Resource Center. The
services provided to homeless individuals and families are focused on finding
housing, job referral, and case management services, medical, dental and
psychiatric assistance. In addition, both municipalities are working with the various
support groups in Central Arkansas as part of the on-going process to address the
needs of homeless individuals and families.
The City is appropriating approximately $5.5 million for Children, Youth and Family
Programs, including youth employment, skills center funding, and re-entry
programming in 2015 as part of City’s emphasis to foster and enhance youth and
community development. City Staff will continue to work with community groups,
neighborhood associations, the faith-based community and other groups to ensure
resources are targeted appropriately. In addition, the City implemented an in-house
pilot program to train and utilize disadvantaged persons for the construction and
maintenance of sidewalks in conjunction with the skills center and re-entry
programming. The program was extremely successful and will be continued in
2015. In addition, the City has expanded the program to include additional entry-
level positions available in other City Departments. Community Programs Staff is
issuing a request for qualifications in 2015 for development of a Youth Master Plan.
The 2015 Budget includes a contingency allocation of $1 million or .51% of General
Fund revenues. The City of Little Rock’s Management Team will continue to manage
the City in a sound and fiscally prudent manner while striving to deliver the quality
and level of service that the citizens of Little Rock expect with available resources.
2014 Accomplishments
Little Rock Police Department: The City hired Kenton Buckner as Chief of Police
replacing Stuart Thomas. Construction was completed on the 12
th
Street Station
with initial occupancy in July 2014 and complete occupancy scheduled for April
2015. An upgrade to the 311 System was commenced in late 2014, which will allow
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citizens to request City services utilizing mobile technology which will greatly
increase service delivery to the citizens of Little Rock. A total of 105,281 requests
for City services were made utilizing the 311 System. A Recruit School began on
June 25, 2014, with a scheduled graduation on February 6, 2015, with nineteen (19)
recruits.
Little Rock Fire Department: The Little Rock Fire Department continued to provide
quality services, responding to more than 28,474 fire and emergency calls during
2014. During the year, the Department developed a “Battalion Chief’s Academy”,
completed a Correlation Development Task Book and implemented a web-based
training program to enhance in-service training capabilities. No fire deaths were
recorded during 2014 in the City of Little Rock due in part to the expanded
community outreach programs and the intensified efforts of the department’s
Prevention and Community Outreach Division. Other divisions within the
Department attained significant goals and instituted numerous staff training during
the year including participation in an Active-Shooter tabletop with the Little Rock
Police Department and Metropolitan Emergency Medical Service (MEMS) and
developed a “Pumping Manual” for the department. The Aircraft Rescue and
Firefighting unit (ARFF) completed the FAA Safety Inspection with zero
discrepancies. The Training Division provided 1,391 training instructor hours
equating to 11,592 hours of student participation in training classes. Classes offered
included EMT refresher classes for 415 firefighters, driver training, inflatable boat
and swiftwater technical training along with numerous other classes, in addition to
conducting a twenty (20)-week Recruit School. The Department continues to move
forward with the accreditation process through the Center for Public Safety
Excellence.
Public Works: In 2014, Public Works Operations Staff responded to 7,798
requests via the 311 service request system and swept 24,996 curb-miles of
streets. In addition, staff administered a successful Sidewalk Program, utilizing
disadvantaged citizens re-entering the workforce. Civil Engineering oversaw the
second year of a three (3)-year cycle of Capital Sales Tax and 2013 Capital Bond
Issuance projects.
Fleet Services: The City of Little Rock Fleet Services Department once again
achieved national recognition as being among the 100 Best Fleets of North America.
In addition, Fleet Services opened a fully-operational Compressed Natural Gas
fueling station in April 2014.
Finance: The Finance Department obtained the Government Finance Officers
Association (GFOA) Certification of Recognition for the 2014 Budget Presentation
and the GFOA Certificate for Excellence in Financial Reporting for the 2013
Comprehensive Annual Financial Report. The Grants Division provided assistance
to other Departments, component units, non-profit organizations, and neighborhood
organizations of the City in training, writing, obtaining, monitoring and reporting on
grant awards. In addition, the Department provided quarterly reporting to the Little
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Rock Citizens Evaluation of New Tax (LRCent) Committee on the status of the new
local sales tax and on progress toward completion of capital projects authorized
under the three-eighths (3/8)-cent portion of the tax. In 2014, the Finance
Department facilitated the issuance of a $5.9 million short-term note to fund the final
phase of the 12
th
Street Station, purchase six (6) Fire Trucks, and fund Information
Technology improvements.
Information Technology: The Information Technology Department assisted the
Police Department with the upgrading of the Computer Aided Dispatch (CAD);
completed the implementation of the Active-Active Data Center project; and
assisted the Police Department with all of the technology needs for the 12
th
Street
Station.
Human Resources: The Human Resources Department conducted a Training
Needs Assessment to determine areas to concentrate on in 2015. In addition, the
Department researched and modified different onboarding processes to improve the
new employee, new hire experience. The Department embarked on a major
independent contractor compliance processes across the city, including providing
training to City employees. Human Resources coordinated the annual flu vaccine
and information program and conducted extensive training on revised policies and
procedures.
Parks & Recreation: In 2014, Little Rock Parks and Recreation dedicated and
opened the Natural Steps Athletic Complex which provides three (3) fields for soccer
and two (2) fields for Lacrosse play. In addition, the Department celebrated the
groundbreaking for the $6 million West Central Community Center, located at the
intersection of John Barrow and Colonel Glen Roads. When completed, the center
will be a 22,000 square-foot state-of-the-art facility. In addition, the Department
dedicated the newest pedestrian/bike trail in the City’s parks system located at War
Memorial Park. The nearly one (1)-mile trail loop runs parallel to the east side of
Coleman Creek. The Little Rock Marathon had another successful race that saw
an increase in both registrations and revenue. Parks were maintained at a Class
“B” level, which indicates that each park is mowed one (1) time every ten (10) work
days. In 2014, the Department’s “Lights on After School” initiative was again
successful, in that it continues to promote the critical importance of quality
afterschool programs in the lives of children, their families and the community.
Finally, a detailed inspection of every playground within the parks system was
conducted.
Planning & Development: The Planning and Development Department, with the
Planning Commission and the Board of Directors, coordinated the review and
adoption of several Zoning and Subdivision Ordinance Amendments. Review of the
City’s future Land Use Plan for two (2) areas was completed and amendments were
approved by the Planning Commission and Board of Directors. The 2012 Arkansas
Fire Prevention Code, Volumes I, II Building and III Residential went into effect
January 1, 2014. The 2014 Arkansas Energy Code and the 2014 National Electrical
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Code were adopted. The Board of Directors approved an ordinance adopting a
Design Overlay District for the John Barrow Road Corridor.
Little Rock Zoo: The Little Rock Zoo enjoyed a successful year in 2014. A capital
upgrade to the chimpanzee exhibit was completed allowing for a new water feature
and new climbing structures for the chimps that is also visually appealing for the
guest. New shade structures were installed over both great ape visitor viewing
areas. New animal identification graphics were installed throughout the Zoo. Baby
capybaras, two (2) maned wolf pups, and two (2) penguin chicks were hatched
contributing to the conservation of important animal species. A new miniature train
ride, the Diamond Express, was donated to the Zoo by the Arkansas Zoological
Foundation and began operation in June. In addition, the Zoo acquired a new zebra
and new camels.
Housing & Neighborhood Programs: The Housing and Neighborhood Programs
Department filled five (5) Code Officer positions during the 2014 year to complete
the number of additional Officers proposed to be hired as part of the LR Cent Sales
Tax Program. In addition, the Department implemented new code enforcement
software that is currently being utilized to improve the effectiveness and efficiency
of the Codes Division. Code Enforcement increased the number of Contract Teams
from two (2) to four (4) teams to be more efficient in debris removal, cutting and
cleaning of vacant properties. The Department implemented a quarterly newsletter
that is distributed to elected officials, neighborhood associations, and other
interested parties. At the Little Rock Animal Village, a donation of $100,000 was
received to assist in the construction of a Quarantine Area.
Community Programs: In 2014, the Community Programs Department fully
implemented new technology software to monitor Prevention, Intervention, and
Treatment Program performance and participation in all funded programs. A
Tobacco Youth Council comprised of fourteen (14) students from across the City
was established, completed orientation, and has begun discussions regarding
tobacco issues affecting children, youth, and families. In collaboration with the Little
Rock School District, implementation of the Evening Career Center, a skills training
pilot project for eighteen (18) to twenty-four (24)-year olds, resulted in the
completion of two (2) successful training cycles. In addition, the Department
continues to expand the Re-Entry Employment Readiness Training Program
throughout all City Departments with a focus on career areas that will assist those
returning from a correctional facility to develop a skill that will lead to full-time,
permanent employment.
Vehicle Storage Facility: The City of Little Vehicle Storage Facility partnered with
the Little Rock Convention and Visitors Bureau to provide taxicab driver training.
Training was completed in April 2014. Staff from the Vehicle Storage Facility
attended the International Association for Transportation Regulators (ATR)
conference. A back-up generator was purchased in 2013 and installed in 2014 for
power outages.
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Budget Polices and the Budget Process: The General Fund goal was to set aside
the greater of $10,000,000, or 10%, of General Fund revenues in the Restricted
Reserve on or before December 31, 2005; however, due to economic conditions in
the past few years, the City has been unable to meet this goal. The restricted
reserve is currently $9,418,000. The 2015 Budget includes a contingency allocation
of an additional $1 million. Following the completion of the 2014 audit, the City’s
management team will determine the amount of funds available to increase the
reserve, with the intent of gradually increasing the Restricted Reserve to achieve
10% of General Fund revenues in the next few years.
2015 Goals
In coordination with the Mayor and City Board, staff will have a major focus
on completion of projects funded by the new sales tax. Staff will constantly
track, monitor, and report on capital projects funded by the sales tax and will
maintain a detailed tracking system on the City’s web site,
www.littlerock.org.
Continue quarterly review meetings with the Little Rock Citizen Evaluation
of New Tax (LRCent) Committee to review expenditures and progress
toward initiatives supported by the new one (1)-cent sales tax. These
meetings will provide an additional layer of accountability and transparency
to tax payers.
Continue to implement the street and drainage sales tax plan for the 2013 -
2015 infrastructure improvement cycle established per the Ward community
meetings.
Complete the Ward community meetings for the second three (3)-year cycle
of street and drainage sales tax projects for 2016-2018.
Continue progress on street and drainage improvement projects funded by
the 2013 Capital Improvement Bonds.
Complete construction and open the West Central Community Center.
Update the Parks Master Plan.
Provide $5.5 million in funding for Children, Youth, and Family Programs,
including youth employment, skills center funding, and reentry
programming, to continue the program to train and employ disadvantaged
persons for construction and maintenance of sidewalks, and to expand the
program to include other entry level positions in other City Departments.
Development of a Youth Master Plan.
Continue the City’s focus on economic development and sustainability.
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Economic Outlook
The primary challenge facing the City of Little Rock remains providing a full
complement of services that satisfy the needs of citizens in the midst of an uncertain,
but stabilizing, economic climate.
The latest comparative figures for the City of Little Rock show unemployment at
5.9%, compared with a U.S. average of 6.2%, according to data from the United
Stated Department of Labor, seasonally adjusted for local figures by Metroplan. Per
Metroplan, the United States economy is gaining strength, the prospect for Central
Arkansas is steady; however, local growth has lagged the U.S average during the
four (4)-year period from 2011-2014. According to Metroplan, the City of Little Rock
had approximately 6,300 unemployed residents as of December, 2012. This
number had decreased to about 4,700 unemployed residents by December, 2014,
representing a decline of 25% in two (2) years. Little Rock remains a vital
employment center, accounting for approximately 53% of all jobs, by place of work,
in the Little Rock-North Little Rock metropolitan areas. A large component of the
City’s workforce is in the areas of health care, education and public administration.
These sectors are less vulnerable to national employment trends.
The Metroplan economic report for early 2015 states that figures from the Arkansas
Department of Finance and Administration demonstrate that Little Rock’s retail sales
are diverse, spread across many sectors. The top three (3) sectors include “other
general merchandise stores, full-service restaurants, and grocery stores,
accounting for approximately 26% of all retail sales. However; at the same time,
U.S. Internet sales continued rapid growth accounting for 6.6% of all retail sales.
Internet sales have an advantage over local retailers in Arkansas and other states
that are unable to collect Sales and Use Tax on online sales. The City is supportive
of the Market Place Fairness Act before Congress, which would enable
municipalities to collect sales tax from retailers that do not have a physical presence
in the State. With sales tax as the primary revenue source for the City of Little Rock,
this legislation is critical to retaining the resources required to sustain local services.
While State Law requires that citizens prepare use tax returns for such purchases,
this method is very ineffective.
The regional housing market has seen less growth than the U.S. average over the
last several years; however, Little Rock has fared better than the regional average.
Single-family housing permits began to rebound during 2012, moving to an average
of thirty (30) monthly; the highest level since 2008, and were nearing an average of
forty (40) units per month by the end of 2014. Multi-family housing construction has
increased in relation to single-family permits, growing from a 32% share of new
housing units to 57% of new housing units in 2014. On August 1, 2013, Moses
Tucker Real Estate announced plans to redevelop the old Arkla Gas Building in
Downtown Little Rock, converting it into upscale apartments by spring 2015. The
$13 million project will be called MacArthur Commons and will include eighty-four
(84) units at the corner of East Capitol and River Market Avenues. In addition, a
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new complex is coming to the South Main District in Downtown Little Rock. The
South Village Apartments at Quapaw at 1301 Louisiana Street will feature sixteen
(16), one (1) and two (2)-bedroom apartments. The $2 million project will provide
additional living units in downtown while retaining the historic architectural integrity
of the area.
Commercial property construction continues to show strong growth. One of the
most exciting developments is the new Bass Pro Shop that opened in Little Rock on
November 13, 2013. The 120,000 square-foot location is at Little Rock’s Gateway
Town Center, a 169-acre project at the northwest corner of Interstates 30 and 430
in Southwest Little Rock. In addition, construction began on an outlet mall at the
same location with approximately seventy-five (75) retail stores, bringing
approximately 1,000 jobs to the area. Outlet shopping centers are unique and
traditionally become destinations and magnets for retail activity. The grand opening
is anticipated in October 2015. Recently, Arkansas Business reported that a thirty-
three (33)-acre piece of the Gateway Town Center development is poised to add
additional commercial construction in 2015. The Gateway’s Grove Project is
envisioned to become an entertainment district with hotels, restaurants and other
attractions.
In July 2014, the Robinson Center Music Hall in Downtown Little Rock was
temporarily closed for a $68 million renovation project. The building will increase
from 133,500 square-feet to 138,000 square-feet. The overhaul includes restoring
the exterior, re-working audience entrances, improving performance hall acoustics
and seating, upgrading the loading area and building a new conference center and
grand hall on the north side of the performance hall. The upgrades are expected to
be completed by 2016.
In September, Dassault Falcon Jet broke ground on a $60 million expansion of its
private jet finishing plant at the Little Rock airport. The expansion will retain 400
positions in Little Rock. The expansion will add 250,000 square-feet to Dassault’s
site and bring the plant’s total area to 1.25 million square-feet.
In November 2014, Entergy Corporation broke ground on a new $23 million center
in Little Rock. The 25,000 square-foot building will be a transmission operations
center in Southwest Little Rock, located at 13019 Vimy Ridge Road.
In December 2014, Arkansas Business reported a 311,684 square-foot FedEx
Corporation Distribution Center to be located in Southwest Little Rock. The $24.9
million project is forecast to take a year and will involve a new street, Industry
Parkway, which will link with Alexander Road.
The City’s long-term outlook remains bright; most indicators continue showing
competitive advantages in the local metropolitan area. Job losses in some sectors
have been balanced, even in recession, by gains in areas with future potential. As
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indicated above, economic projects are in development in all areas of the City –
from Downtown, to Midtown, Southwest Little Rock and West Little Rock.
Little Rock’s strong business environment and quality of life have been recognized
by several national publications. In July 2013, Little Rock was named “#1 of
America’s 10 Great Places to Live” by Kiplinger’s Personal Finance. The rankings
place an emphasis on small and mid-size cities, considering metro areas with a
population of one million or less that have good jobs, reasonably priced homes,
decent schools and access to great health care. Little Rock is very proud of this
ranking.
In January 2014, Arkansas Business reported that the University of Arkansas Fay
Jones School of Architecture and Marlon Blackwell Architect of Fayetteville won a
2014 Honor Award from the American Institute of Architects for the Little Rock Main
Street Creative Corridor Plan. The plan will retrofit a four (4)-block area of Main
Street by utilizing economic development focused on cultural arts rather than a
traditional retail base. The Arkansas Symphony Orchestra, Ballet Arkansas and the
Arkansas Repertory Theatre plan to occupy rehearsal and creative space in the
corridor.
In June 2014, Arkansas Business reported that the American Council for an Energy-
Efficient Economy will bring its 2015 National Conference on Energy Efficiency as
a Resource to the Statehouse Convention Center in September 2015. The biennial
event, which the Arkansas Economic Development Commission (AEDC) calls one
of the premier conferences on the role of energy efficiency as a utility system
resource, was first held in 2001 and will be making its first trip to Arkansas.
In addition, Little Rock was recently listed as No. 3 Best State Capital by USA Today
Readers; Choice 10 Best. The article had this to say about Little Rock, “A downtown
renaissance has transformed Little Rock into a city with culture, cuisine and
abundant outdoor activities. Visitors can rent a bike and pedal the sixteen (16)-mile
loop along the Arkansas River Trail, visit the Clinton Presidential Center and the
Little Rock Central National Historic Site, a National Park Service unit that interprets
the crucial role played by the school in the civil rights struggle.” The article may be
found at (http://www.10best.com/awards/travel/best-travel-worthy-state-capital/)
The City will continue to identify economic development opportunities that result in
the expansion, retention or start-up of businesses that create jobs and generate
sales tax, property tax or other forms of revenue for the City. $38,000,000, or 19.4%,
of the revenue anticipated from the three-eighths (3/8)-cent sales tax for capital
projects is dedicated to jobs and economic development over the next seven (7)
years. The funds will be utilized for port expansion, development of a research park,
and job recruitment and economic development infrastructure.
Closing: This budget is the financial and operating plan for the City of Little Rock
for 2015. The appropriations included provide for quality municipal services.
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City of Little Rock, Arkansas 2015 Operating Budget
OVERALL CITY GOALS AND OBJECTIVES
On February 28, 2003, and March 1, 2003, the Mayor and Board of Directors met
in two retreat sessions to develop a strategic policy plan structured around the
goals and objectives of each Board member. After a brainstorming session to
determine the needs of the community the Board of Directors divided their
priorities into two categories: What Must we do? And What Should we do? The
Board assigned city staff the task of developing a mission statement, for their
approval, that would bring together the themes of each policy area. The mission
statement and the Board of Director’s policy statements for each strategic policy
area have remained consistent since that time and are outlined below:
Mission Statement
Little Rock’s vision is to be a leading city of the 21
st
Century by providing a safe
and supportive environment that empowers its citizens, neighbors and
businesses to develop and prosper.
Must Do
Policy Statement for a Safe City
It is the policy of the City of Little Rock to protect the rights of the people, ensure
public order, and provide public safety through efficient delivery of services in
addition to requiring the highest level of professional standards.
This shall be accomplished by:
Providing protection through the enforcement of municipal laws
Providing protection from loss or damage of property
Safeguarding individual liberties and implementing community
partnerships to foster cooperation and shared resources from other public
and private agencies
Maintaining and improving community livability through partnerships with
diverse communities by proactively addressing public safety concerns,
which enhance the quality of life for all
Supporting programs that address the issues of children, youth and
families
Striving to ensure the availability and access of adequate, safe and
affordable housing
Striving to improve vehicular and pedestrian safety
Providing disaster assistance in natural and man-made emergencies
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City of Little Rock, Arkansas 2015 Operating Budget
Providing optimum service levels to the public as cost effectively as
possible to maintain a safe, healthy community
Must Do
Policy Statement for Economic Development
It is the policy of the City of Little Rock to support the local/regional economy and
to provide opportunities to retain, form and attract new business.
To accomplish this policy, the City shall:
Support and promote industry and leverage key resources and assets to
attract business interests that offer high-skill/high-wage opportunities for
citizens
Build on the momentum created by public and private investment and
recognize that these efforts promote economic growth for all of Central
Arkansas
Actively develop programs to support small, minority-owned and women-
owned businesses in recognition of the important role of these enterprises
in the creation of jobs and economic opportunities
Must Do
Policy Statement for Basic City Services
It is the policy of the City of Little Rock to ensure citizens receive quality basic
services, and to provide a viable system that enables its employees to give the
most efficient and effective support possible.
The services provided to the citizenry will include:
A comprehensive operational and administrative support system
The collection of solid waste
An efficient drainage and wastewater system
The provision of a clean, healthy water supply
A coordinated and efficient public transit system
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City of Little Rock, Arkansas 2015 Operating Budget
Must Do
Policy Statement for Infrastructure
It is the policy of the City of Little Rock to maintain and improve a comprehensive
infrastructure system that meets the changing needs of the community while
protecting the integrity of the environment.
A comprehensive infrastructure system includes:
Drainage systems
Information technology systems
Public buildings
Solid waste facilities
Streetlights
Streets
Traffic signals
Wastewater facilities
Water systems
Should Do
Policy Statement for Quality of Life
It is the policy of the City of Little Rock to join with community partners to ensure
access to vital and varied recreational, creative and educational experiences.
This will be accomplished to:
Strengthen the fabric of daily living experiences for residents and visitors
alike
Capitalize on Little Rock’s rich natural and cultural resources
Take advantage of the diversity of Little Rock’s citizenry
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City of Little Rock, Arkansas 2015 Operating Budget
Statement of Management Policy
Each year the City Manager develops a Statement of Management Policy to
provide guidance and establish specific parameters for departments to follow
when developing their annual budgets. The Statement of Management Policy is
comprised of common themes from the Board of Directors overall goals and
objectives. It is the City Manager’s responsibility, working in conjunction with
Department Directors, to develop the annual budget around these policy areas in
order to promote efficiency and effectiveness in the delivery of services to the
public.
The 2015 Statement of Management Policy includes these key principles:
Public Safety
Strive to improve public safety through the use of information, education and
community based enforcement strategies to encourage cooperation with and
participation in City safety services. Utilize technology and innovative methods
and techniques in order to produce a safe environment for the Citizens of Little
Rock.
Economic Development
Continue partnerships with private and public agencies in the recruitment of new
business. Pursue innovative approaches to retain existing businesses and
promote the creation of small businesses in the City of Little Rock.
Infrastructure
Focus on the installation and maintenance of streets, drainage, sidewalks, traffic
signals and other capital needs in the City of Little Rock.
Quality of Life
Focus on improving active, passive and leisure activities for citizens and visitors.
Financial Reporting
Continue to provide accurate and timely information on the status of the City’s
financial picture to the Board of Directors and the public. Continue to pursue
innovative techniques to gather and report financial data.
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The Budget Process
City of Little Rock, Arkansas 2015 Operating Budget
THE BUDGET PROCESS
The City’s annual budget is the result of a thorough, public process. The budget
projects all receipts and disbursements, the level of governmental services to be
provided, and the method of distributing cost and services to the various
segments of the community. The budget process includes an evaluation of
community needs and reflects priorities established by the Mayor, the Board of
Directors, and the City Manager. This document serves to inform citizens and
other interested parties of the City’s service plans and overall financial condition.
The Management Team had financial planning work sessions to facilitate budget
and capital project planning. The work sessions focused on revenue outlook,
trends, revenue issues, priority expenditures, expenditure issues, capital projects
and debt for capital projects.
The financial guidelines and policies that serve as the framework for the financial
operation of City government and the basis for budget development are
contained in the financial section of the budget document.
The budget process begins with the City Manager’s assessment of the goals and
initiatives of the Mayor and the Board of Directors. A budget package prepared
by the Finance Department is then distributed to the Department Heads. The
package includes general guidelines from the City Manager with budget reports
that include initial revenue projections, prior year expenditures, current year
budgeted and actual year-to-date expenditures for all operating accounts, a
listing of capital projects, and a budget preparation calendar. The Internal
Services Fund provides projected vehicle maintenance, labor and fuel charges to
each user Department. Budget staff provides training sessions on the budget
process and budget monitoring throughout the year as needed. Departments
submit their expenditure requests to the Finance Department for an initial review.
The City Manager conducts internal budget hearings with each Department to
review goals, projected revenues and expenditures, desired program initiatives,
and capital needs. Budget requests are modified based on the results of the
internal hearings. The Finance Department compiles all of the requests and
recommends any additional modifications necessary in order for the City
Manager to present a balanced budget recommendation to the Mayor for review.
The City Manager reviews program funding recommendations with the Mayor
and discusses associated revenue and expenditure assumptions in detail. The
Mayor and City Manager make modifications to reflect any additional priorities.
The Mayor and City Manager then conduct a budget workshop with the Board of
Directors.
The Capital Budget is usually prepared to present the capital expenditures
planned for each of the next five (5) fiscal years. In 2011, citizens passed a
three-eighths (3/8)-cent sales tax for capital projects that went into effect on
January 1, 2012. The sales tax is a temporary tax with a ten (10) year sunset,
2021. Planned capital expenditures from the sales tax are discussed in detail in
the capital section of the budget document. In addition, capital needs funded by
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City of Little Rock, Arkansas 2015 Operating Budget
grants or bond issues were considered. The total costs of each project and the
sources of funding required to finance each project are estimated. The FY15
capital requests are considered separately by fund.
The Mayor and City Manager conduct public hearings to obtain input from
citizens. The City utilizes a program-based budget approach for the funds under
the direction of the City Manager.
Approved departmental expenditures are categorized by organizational service
delivery unit, and then presented as costs associated with specific service
programs. This approach allows citizens and their elected representatives to
evaluate the costs of various services, to relate those costs to units of service
delivered, and to set service priorities.
The adopted budget ordinance provides for budgetary control at an
organizational level. Budgets cannot be exceeded without the approval of the
Mayor and Board of Directors.
City Management monitors achievement of program service objectives as
follows:
In regular meetings with department directors by the City Manager and his
staff;
In quarterly reports to the City Manager by department directors;
Through management information system reporting;
Through regular public presentations to the Mayor and Board of Directors;
and
Through meetings with neighborhood organizations and other citizen groups.
Employees are evaluated annually in relation to the performance of designated
services.
Following adoption of the budget, revenue and expenditure budget accounts are
established based on the organizational structure of the City’s financial system.
Monthly and quarterly reports of revenues, expenses and remaining balances are
prepared for the Mayor, Board of Directors and City management. The
availability of budgeted funds is verified before a purchase order is issued, which
then encumbers the budget account.
The 2015 Budget
The 2015 Basic Budget reflects estimated costs for those programs which
were approved or received funding.
Goals
Goals are clear statements of a department’s mission, or purpose. Goals
pinpoint the reasons for the department’s existence and establish the
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City of Little Rock, Arkansas 2015 Operating Budget
department’s direction and responsibility(s). Each department’s objectives
are linked to the dollar figure budget needed to achieve the goal.
Objectives
Objectives are the specific functions, which must be performed in order for
a program to satisfy or fulfill a particular goal.
Objectives are typically expressed in measurable terms so that a
program’s level of accomplishment or performance can be evaluated at
the end of the fiscal year.
The calendar for developing the 2015 budget follows:
August 5 Finance sends letters to Outside Agencies for 2015
funding requests. (Response deadline September
5)
August 15
A
ffordable Care Act look back period ends.
Finance reviews final part-time report to determine
which employees will have an additional health care
benefit in 2015
August 22 Departments review special project balances.
Finance Department sends out Personnel Model for
verification.
August 29 Departments submit revenue estimates, proposed
rate adjustments and new fee recommendations
and dedicated grant match requests to Finance,
September 5 Departments complete review of 2015 Personnel
Model with necessary changes reported to HR and
Budget Office.
September 8 - 12 City Manager reviews Outside Agency Requests.
HR provides 2015 new benefit rates to Finance.
September 19 2015 Budget instructions, departmental budgets
and Personnel Model distributed. Assist
departments with budget process.
September 26 Fleet Services submits 2015 budget to Finance and
departments.
October 3 Departments submit 2015 operating and capital
budget requests to Finance. Community Programs
submits CYF/PIT recommendation to City Manager.
October 6 – 10 Finance verifies budget requests. Finance updates
financial trends, revenue forecast, and reviews new
revenue options.
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October 10 – 20 City Manager reviews departmental budget
requests and CYF/PIT recommendation. Budget
meetings held with departments.
October 14 Board of Directors considers policy issues and
revenue projections.
October 21 Board adopts 2015 mill levy Ordinance.
November Budget preparation continues. Meetings held with
Mayor to discuss preliminary budget.
Nov. – Dec. Union Negotiations
December 2 Draft Budget distributed to Board of Directors.
Board Budget Workshop held.
December New Health Plan considered. Public Budget
Information Meetings held.
December 16 Board of Directors adopts 2015 Budget Ordinance,
utility franchise Ordinances, and revenue rate
adjustments if applicable.
December 19 Finance submits 2015 Budget Document data
request to departments.
AMENDING THE BUDGET
During the fiscal year, adjustments may be required to refine the original adopted
budget. The approved budget may be amended as required in accordance with
the following protocol:
Revenues are reviewed monthly and quarterly and the projections are
adjusted if warranted.
Adjustments to transfer approved expenditure budgets from one organization
to another may be approved by the City Manager if less than $50,000.
Transfers in excess of $50,000 must be submitted to the Mayor and Board of
Directors for approval.
Requests for new appropriations may be submitted by the City Manager or at
the direction of the Mayor or Board of Directors and require authorization by
Board Ordinance.
Funds Controlled by the City Governing Body
The Funds controlled are:
General;
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City of Little Rock, Arkansas 2015 Operating Budget
Special Revenue;
Capital;
Proprietary;
Fiduciary; and
Debt Service.
The City’s financial policies are included in the Financial Structure section.
BUDGET POLICIES
The City has developed and utilized budget policies that are designed to
accomplish specific objectives and enhance the budget process. These policies
include:
The 2015 budget does not include salary increases. One-time lump sum
bonuses for full-time employees will be awarded based on salary ranges,
providing the greatest benefit to employees with the lowest salaries.
Employees with a salary of $40,000 or below will receive a bonus of $1,000.
Employees with a salary from $40,001 to $60,000 will receive a $750 bonus.
Finally, employees with a salary of $60,001 or greater will receive a $500
bonus. Non-uniform employees currently on probation will receive the bonus
after successful completion of their six (6) month probationary period, and
probationary uniform employees will receive their bonus after successful
completion of their respective recruit school. The City Manager, the Assistant
City Manager, and Department Heads were excluded from the bonus
program.
The American Federation of State, County and Municipal Employees
(AFSCME), the International Association of Fire Fighters and the Fraternal
Order of Police positions will participate in the bonus program. In addition,
step and grade increases are budgeted in accordance with union
agreements. All three (3) union agreements were open for negotiation in
2014. Negotiations were on-going at year-end.
In July of 2015, revenues trends will be reevaluated to determine if salary
increases are possible.
Positions that are vacant at the time the budget is adopted are budgeted at
the mid-range salary based on grade, providing some budget flexibility in the
recruiting process. In addition, an estimated annual savings generated from
vacant positions is included in the budget as a reduction to personnel cost.
As vacancies occur, the savings is utilized to reduce personnel budget
allocations by department.
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The City utilized the in-house payroll system to aid in the development of the
budget for the bonus and benefit costs for 2015. Salary changes are
budgeted for each employee group to occur at the required time, such as on
the employee’s anniversary date or at the first of the year.
The Fleet Services Internal Service Fund develops an expenditure budget for
vehicle maintenance and fuel which is allocated to departments based on the
number of assigned vehicles, service history, and prior fuel utilization. These
allocations are not subject to change by the user departments.
Departments are given specific budget parameters by the Mayor and City
Manager. Departments are not allowed to alter calculated personnel cost or
Internal Service Fund budget allocations, and are instructed not to make
funding requests for new programs without the approval of the City Manager.
For 2015, departments were authorized to implement priority needs and
specific new positions supported by the new sales tax, which became
effective in 2012, and to fill key vacant positions.
These policies are designed to ensure that operating departments have sufficient
funds available to support programs and services, and to mitigate the need for
budget reductions during the course of the fiscal year.
OTHER BUDGET PROCEDURES
The preceding budget procedures apply to the development of the budget for the
General Government operating funds, and the Proprietary, Special Projects and
Capital funds. These funds are under the direct guidance of the City Manager.
Special Revenue funds’ budgets are developed internally by staff. The
Community Development Block Grant and Home Investment Partnership
Program budgets are developed in accordance with specific federal guidelines,
including obtaining required citizen input, and are then presented to the Mayor
and Board of Directors for final approval.
Component Units develop separate budgets for approval by their respective
governing board or commission. These budgets do not require submission to the
Mayor and Board of Directors for approval. The Fiduciary retirement funds do
not prepare formal budgets, but the associated boards of trustees regularly
monitor the income and expenditures of the funds.
Annual budgets are adopted on a basis consistent with accounting principles
generally accepted in the United States of America. Governmental funds are
reported using the current financial resources measurement focus and the
modified accrual basis of accounting.
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City of Little Rock, Arkansas 2015 Operating Budget
The basis of budgeting and the basis of accounting used in the City’s audited
financial statements are the same. Appropriations lapse at the end of the each
year. With this measurement focus, only current assets and liabilities are
generally included on the balance sheet. The statement of net assets presents
increases (revenues and other financing sources) and decreases (expenditures
and other financing uses) in spendable resources. General capital asset
acquisitions are reported as expenditures and proceeds of general long-term
debt are reported as other financing sources. Under the modified accrual basis
of accounting, revenues are recognized when both measurable and available.
The City considers revenues reported in the governmental funds to be available if
they are collectible within sixty days after year-end. Principal revenue sources
considered susceptible to accrual include taxes, federal funds, local funds and
investment earnings. Other revenues are considered to be measurable and
available only when cash is received by the City. Expenditures are recorded
when the related fund liability is incurred, except for principal and interest on
general long-term debt, claims and judgments, compensated absences and
obligations for workers’ compensation, which are recognized as expenditures
when payment is due. Pension expenditures are recognized when amounts are
due to a plan.
Operating revenues and expenditures are distinguished from non-operating
items. Operating revenues and expenses generally result from providing
services in connection with the principal ongoing operation of the fund. All
revenues and expenses not meeting this definition are reported as non-operating
items.
Appropriations for special projects are budgeted as transfers to a special project
fund by the Mayor and Board of Directors. These allocations are used to finance
specific initiatives or capital projects. Special projects are generally multi-year
activities that are monitored until they are fully expended or repealed by the
Mayor and Board of Directors. At the conclusion of the special initiative or capital
project, remaining allocations are returned to the fund that originally sponsored
the project. Examples of such projects are allocations for homeless prevention,
weed lot maintenance, demolition, and the Mayor’s Youth Council.
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Financial Structure
City of Little Rock, Arkansas 2015 Operating Budget
LITTLE ROCK'S FINANCIAL STRUCTURE
Cities in Arkansas derive the authority to levy taxes and provide municipal
services from state statutes. Little Rock's financial structure utilizes fund
accounting, which separates the transactions related to various City functions
and is designed to demonstrate compliance with legal requirements. Certain
funds are controlled directly by the City's governing body, and other funds are
controlled by agencies whose assets are owned by the City but are operated by
independent boards and commissions.
FUNDS CONTROLLED BY THE CITY GOVERNING BODY
GENERAL FUND OPERATIONS
General Fund – This fund is the primary operating fund of the City and
receives all revenues not required to be accounted for separately. In
addition to funding traditional government services, annual appropriations
are made from this fund for various outside agencies that perform services
on behalf of the City, for special projects, and for limited capital
improvements.
SPECIAL REVENUE FUNDS
Street Fund – This is a special revenue fund that includes income
restricted for street and traffic maintenance, such as the state gasoline tax
turnback and one-half of a County road property tax. In addition, parking
meter revenues and reimbursement for street cuts are reported in this
fund.
Special Projects Fund – This fund receives certain revenues and
appropriations for special purposes or for capital projects that generally
have a multi-year life.
Infrastructure Fund – This fund was established to commit resources for
the improvement and maintenance of the City's infrastructure.
Emergency 9-1-1 Fund – This fund contains fees derived from telephone
charges, which are restricted to uses related to operating and equipping
the City’s 9-1-1 Emergency Operations Center.
Grant Fund – Various Federal and State Grant awards are reported in
this fund.
Community Development Block Grant Fund – This fund receives
Federal block grants utilized primarily for street improvements, community
services and community center operations.
Neighborhood Housing Special Project Fund (NHSP) – This fund
accounts for the proceeds of the Community Development Block Grant –
Section 108 Guaranteed Loan Program and other City funds that are
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City of Little Rock, Arkansas 2015 Operating Budget
utilized to provide housing and housing assistance to qualifying citizens
and to improve neighborhood infrastructure.
Home Investment Partnership Fund (HIPP) – This fund accounts for
funding received from the U.S. Department of Housing and Urban
Development to provide housing or housing assistance to qualifying
citizens, to improve neighborhood streets and drainage, and to operate
community health and recreation facilities.
CAPITAL PROJECT AND RELATED DEBT SERVICE FUNDS
Capital Projects Funds – These funds are derived from the proceeds of
general obligation bonds issued to finance major capital improvement
projects.
Debt Service Funds – The City’s general obligation bonds are primarily
supported by separate property tax levies approved by taxpayers for the
sole purpose of retirement of debt issued to fund capital improvement and
construction projects. The proceeds of the special levies are accounted for
in debt service funds to be utilized for this purpose. There is a
corresponding capital projects fund established for each bond issue.
2002 Capital Improvement Junior Lien Revenue Bonds – The 2002
Capital Improvement Junior Lien Revenue Bonds were issued to finance
infrastructure improvements, the costs of issuance, and to fund the debt
service reserve. These bonds are special obligation bonds of the City,
payable solely from the franchise fees collected from public utilities for the
privilege of utilizing the streets, highways and other public places within
the City.
2007 Capital Improvements – The 2007 Capital Improvements were
issued to finance the advance refunding of the City’s Capital Improvement
Revenue Bonds 1998A and to pay the cost associated with the issuance
of the Series 2007 Bonds. The Series 2007 bonds are not general
obligations of the City but are special obligations payable solely from the
revenue received by the City from all franchise fees charged to public
utilities for the privilege of utilizing the City’s streets and right-of-way.
The remaining funds available from interest earnings on these bond funds
have been allocated to the South Loop and Scott Hamilton Drive
improvements.
2008 and 2009 Central Library and Improvement Fund – 2008 and
2009 Library Improvement and Refunding Bonds are limited obligations
payable through 2028. The Library Bonds were issued to finance the cost
of acquiring, constructing, and equipping capital improvements to the
public City libraries operated by the Central Arkansas Library System.
The bonds are limited tax obligations payable solely from a 1.0 mill annual
ad valorem tax.
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2009A Capital Improvement Construction Revenue Bonds and 2009B
Parks and Recreation Capital Improvement Refunding Bonds – The
2009A Parks and Recreation Bonds were issued for the purposes of
acquiring, constructing, equipping, renovating, expanding, and
refurbishing certain zoo, parks, and recreation facilities of the City. The
2009B Bonds were issued for the purpose of refunding the City’s
outstanding Capital Improvement Revenue Bonds (Parks and Recreation
Projects) Series 1998A. The 2009A and 2009B bonds are special
obligations, payable solely from the revenues derived from the operation
and ownership of the zoo, parks and recreation facilities.
2012 Library Construction and Refunding Bonds – 2012 Library
Construction and Refunding Bonds are limited obligations payable through
2032. The Library Bonds were issued to finance the cost of acquiring,
constructing, and equipping capital improvements to the public City
libraries operated by the Central Arkansas Library System, to refund the
City’s outstanding Library Construction Bonds, Series 2004A, and to pay
the cost of issuance of the bonds. The bonds are limited tax obligations
payable solely from a 0.9 mill annual ad valorem tax.
2012 – 2021 Capital Project Fund – This fund is utilized to account for
the proceeds of a 3/8 cent ten (10) year capital tax to fund new Fire and
Police facilities, a new emergency communications system, economic
development infrastructure, including improvements at the port and
funding for a technology park, capital improvements for Park and Zoo
facilities, information technology projects and vehicles and equipment.
The tax went into effect on January 1, 2012 and expires on December 31,
2021.
2013 Limited Tax General Obligation Capital Improvement Bonds
On September 11, 2012, citizens of Little Rock approved the issuance of
$105 million in Capital Improvement Bonds for the purpose of Street and
Drainage infrastructure improvements. The 2013 Limited Tax General
Obligation Capital Improvement Bonds in the amount of $58,105,000
issued July 24, 2013 were the first series of bonds issued for this purpose.
These bonds are secured by all proceeds derived from a separate 3-mills
annual ad valorem tax on all taxable real and personal property located
within the City.
Short Term Financing – This fund accounts for proceeds of Short Term
Financing notes issued to acquire capital equipment, building
improvements and vehicles for the City.
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City of Little Rock, Arkansas 2015 Operating Budget
PROPRIETARY FUNDS
Waste Disposal Enterprise Fund – This fund was created to account for
the City’s solid waste system.
Vehicle Storage Facility Enterprise Fund – This fund was created to
account for vehicle storage services.
Fleet Internal Services Fund – This fund utilizes a flexible budget and
derives its revenues primarily from charges to the organizations in the
General, Street and Waste Disposal Funds that utilize City vehicles.
Parking Garage Fund – This fund was created to account for the
operations of the City’s two parking garage facilities.
FIDUCIARY FUNDS CONTROLLED BY BOARDS OF TRUSTEES
An important benefit for City employees is a retirement plan. The City
participates in the state Local Police and Fire Retirement System (LOPFI) for all
uniformed employees hired after January 1, 1983. In addition, LOPFI
administers the Policemen’s Pension and Relief Fund. The following retirement
funds are administered by the City and cover substantially all other employees:
Firemen's Relief and Pension Fund
Non Uniform Defined Contribution Pension Fund
Non Uniform Defined Benefit
New 2014 Non Uniform Defined Benefit Fund
Pension Health Management Trust Fund
All pension funds receive contributions from both employees and the City. The
Firemen and Policemen's funds also receive a dedicated property tax levy and
insurance turn back revenues. Each fund has a Board of Trustees that directs its
activities.
DISCRETE COMPONENT UNITS CONTROLLED BY INDEPENDENT
BOARDS & COMMISSIONS
Certain City services are similar to activities found in the private sector. They
have independent Boards and Commissions. They are budgeted and accounted
for as separate entities and are expected to maintain revenues sufficient to meet
their operating costs, debt service requirements, and system replacement and
maintenance needs. These funds are listed below but are not included in this
document:
Little Rock Wastewater Utility
Little Rock National Airport
Little Rock Advertising & Promotion Commission
Little Rock Port Authority
Metropolitan Emergency Medical Services (MEMS)
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Central Arkansas Transit Authority
Arkansas Museum of Discovery
Arkansas Arts Center
Central Arkansas Library System
Oakland Fraternal Cemetery
Mt. Holly Cemetery
These funds receive income from service charges that are used to operate their
respective facilities and to retire revenue bonds. In addition, a 2% Hotel, Motel,
and Restaurant Sales Tax provides the main source of income to operate the
Advertising and Promotion Commission and retire its bonds. Boards and
Commissions, which derive their authority from specific statutes, operate all of
these funds. However, the City's governing body must authorize rate changes,
approve all bond issues, and approve appointments to the Boards and
Commissions. Therefore, these funds are required to be reported as discrete
component units of this entity by GASB Statement Number 39.
OTHER FUNDS NOT INCLUDED
This budget does not include the Little Rock School District, which is governed by
its own elected board, is a separate taxing authority, issues its own debt and
receives no City subsidy. Certain other funds are not included, because they
operate under independent Boards, have other sources of revenue, and are in no
way dependent upon the Mayor and Board of Directors. These are as follows:
Little Rock Housing Authority
Little Rock Residential Housing and Facilities Board
Central Arkansas Water
In addition, this budget does not include certain multiple-employer, defined
benefit pension funds administered and trusted by independent fiduciary agents
and in which certain employees participate.
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City of Little Rock, Arkansas 2015 Operating Budget
FISCAL POLICIES
A. OPERATING MANAGEMENT
1. All City departments share in the responsibility of meeting policy goals
and ensuring long-term financial health. Future service plans and
program initiatives will be developed to reflect current policy directives,
projected resources, and future service requirements. When appropriate,
sunset provisions will be incorporated into service plans.
2. The budget process is intended to weigh all competing requests for City
resources. Requests for new, on-going programs made outside the
budget process are discouraged.
3. Addition of personnel will only be requested to meet program initiatives
and policy directives; after service needs have been thoroughly examined
and it is substantiated that additional staffing will result in increased
revenue or enhanced operating efficiencies. To the extent feasible,
personnel cost reductions will be achieved through attrition.
4. Current expenditures will be funded by current revenues. A diversified
and stable revenue system will be developed to protect programs from
short-term fluctuations in any single revenue source.
5. No revenues will be dedicated for specific purposes, unless required by
law or generally accepted accounting practices (GAAP). All non-restricted
revenues will be deposited in the General Fund and appropriated by the
budget process.
6. User fees and charges will be examined annually to ensure that all direct
and indirect costs of provided the service are recovered. If the user fees
and charges required to meet full cost recovery would be excessively
burdensome on citizens receiving service, the Board of Directors may
approve a lower user fee or charge. The City will consider market rates
and charges levied by other public and private organizations for similar
services in establishing rate and fee structures. Rate adjustments for
Waste Disposal will be based on five-year financial plans.
7. Grant funding should be considered to leverage City funds. Inconsistent
and /or fluctuating grants and trusts should not be utilized to fund on-
going programs. Programs financed with grant moneys will be budgeted
in separate cost centers, and the service program will be adjusted to
reflect the level of available funding. In the event of reduced grant
funding, City resources will be substituted only after all program priorities
and alternatives are considered during the budget process.
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8. All grants and other Federal and State funds shall be managed to comply
with the laws, regulations, and guidance of the grantor, and all gifts and
donations shall be managed and expended according to the wishes and
instructions of the donor.
9. Fleet replacement will be accomplished through the use of a “rental” rate
structure. The rates will be revised annually to ensure that charges to
operating departments are sufficient for operation and replacement of
vehicles.
10. Balanced revenue and expenditure forecasts will be prepared to examine
the City’s ability to absorb operating costs due to changes in the
economy, service demands, and capital improvements. The forecast will
encompass five years and will be updated annually.
11. Comparison of service delivery will be made to ensure that quality
services are provided to our citizens at the most competitive and
economical cost. Departments will identify all activities that can be
provided by another source and review alternatives to current service
delivery. The review of service delivery alternatives will be performed
continually. During the annual budget process, funding for outside
Agencies, FUTURE-Little Rock, and special projects will be evaluated.
12. To attract and retain employees necessary for providing high quality
services, the City shall establish and maintain a very competitive
compensation and benefit package with that of the public and private
sectors.
13. The City will follow an aggressive and professional policy of collecting
revenues.
14. In each annual budget, the City may authorize a transfer from one fund to
another for one or more special projects. Expenditures from the special
project shall be consistent with the purpose of the special project.
Unspent appropriations for special projects shall carry forward into the
next fiscal year. Unspent special project appropriations remaining on
June 30 in the next fiscal year shall be returned to the fund of origin
unless the City Manager authorizes continuation of the special project.
15. The City will strive to maintain fair and equitable relationships with
contractors and suppliers.
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B. CAPITAL MANAGEMENT
1. A five-year Capital Improvement Plan will be developed biannually and
updated annually, including anticipated funding sources. Capital
improvement projects are defined as infrastructure or equipment
purchases or construction that results in a capitalized asset costing more
than $5,000 and having a useful life (depreciable life) of two years or
more.
2. The capital improvement plan will include, in addition to current operating
maintenance expenditures, an adequate level of funding for maintenance
and replacement to ensure that all capital facilities and equipment are
properly maintained.
3. Proposed capital projects will be reviewed by a cross-departmental team
for accurate costing (design, capital, and operating), congruence with City
objectives and prioritized by a set of deterministic criteria. Financing
sources will be sought for the highest-ranking projects.
4. Capital improvement operating budget impacts will be coordinated with the
development of the annual operating budget. Future operating,
maintenance, and replacements costs will be forecast as part of the City’s
five-year financial forecast.
5. The City will provide for a minimum of 5% of internal, pay-as-you-go
financing for its Capital Improvement Program. Funding may come from
fund balance reserves or any other acceptable means.
C. DEBT MANAGEMENT
1. The City will seek to maintain and, if possible, improve its current bond
rating in order to minimize borrowing costs and preserve access to credit.
The City will encourage and maintain good relations with financial bond
rating agencies and will follow a policy of full and open disclosure.
2. Future bond issue proposals will be accompanied by an analysis showing
how the new issue combined with current debt impacts the City’s debt
capacity and conformance with City debt policies.
3. The City will attempt to develop a coordinated communication process
with all other overlapping jurisdictions with which it shares a common tax
base concerning collective plans for future debt issues.
4. Financing shall not exceed the useful life of the asset being acquired.
5. The City will not use long-term debt to finance current operations.
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6. The general policy of the City is to establish debt repayment schedules
that utilize level annual principal and interest payments.
7. The general policy of the City is to fund capital projects (infrastructure)
with new, dedicated streams of revenue or voter approved debt. Nonvoter
approved debt may be utilized when a dedicated revenue source other
than general revenue can be identified to pay debt service expenses.
8. Interest earnings on bond proceeds will be limited to 1) funding the
improvements specified in the authorizing bond ordinance, or 2) payment
of debt service on the bonds.
9. Utility rates will be set to ensure debt service coverage exceeds the bond
indenture requirement of 125%.
10. The City shall comply with the Internal Revenue Code Section 148 –
Arbitrage Regulation for all tax-exempt debt issued. An annual estimate
of arbitrage liabilities shall be obtained by the City and recorded on the
financial statements.
11. The City shall use a competitive bidding process in the sale of debt unless
the use of a negotiated process is warranted due to market timing
requirements (refunding), or a unique pledge or debt structure. The City
will award competitively issued debt on a true interest cost (TIC) basis.
12. Proceeds from debt will be utilized in accordance with the purpose of the
debt issue. Funds remaining after the project is completed will be used in
accordance with the provisions stated in the bond ordinance that
authorized the issuance of the debt.
D. RESERVES
1. All fund designations and reserves will be evaluated annually for long-term
adequacy and use requirements in conjunction with development of the
City’s five-year financial plan.
2. The General Fund goal is to set aside $10,000,000 or 10% of General
Fund revenues; whichever is greater, into a restricted reserve fund on or
before December 31, 2005; however, due to economic conditions in the
past several years, the City has not been able to meet this goal. The
restricted reserve is currently $9,418,000. The Board will consider
increasing the restricted reserve based on annual audited financial results.
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3. Each annual operating budget will include a contingency appropriation in
the General Fund sufficient to provide for unforeseen needs of an
emergency nature for that year. The desired level of the contingency
appropriation each year shall be based on the average of the three prior
years’ experience levels but no less than .5% of General Fund revenue for
the current fiscal year.
4. The Waste Disposal Fund will maintain an unrestricted retained earnings
reserve of no less than 15% of current year revenues.
5. Fleet Management reserves will be maintained based upon lifecycle
replacement plans to ensure adequate fund balance required for
systematic replacement of fleet vehicles. Operating departments will be
charged for fleet operating costs per vehicle class and replacement costs
spread over the useful life of the vehicles.
6. Self-insurance reserves will be maintained at a level that, together with
purchased insurance policies, will adequately indemnify the City’s property
and liability risk. A qualified actuarial firm shall be retained on an annual
basis in order to recommend appropriate funding levels.
7. A Facility Maintenance Reserve will be maintained based upon lifecycle
replacement plans to ensure adequate funding for infrastructure repair and
operating equipment replacement (HVAC, roofing, etc.).
E. CASH MANAGEMENT AND INVESTMENTS
1. Cash and investment programs will be maintained in accordance with the
City Charter and the adopted investment policy and will ensure that
proper controls and safeguards are maintained. City funds will be
managed in a prudent and diligent manner with an emphasis on safety of
principal, liquidity, and financial return on principal, in that order.
2. The City will maintain written guidelines on cash handling, accounting,
segregation of duties, and other financial matters.
3. The City will conduct periodic reviews of its internal controls and cash
handling procedures.
4. The City will annually identify and develop an Internal Audit Work plan.
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F. ACCOUNTING, AUDITING AND FINANCIAL REPORTING
1. The City’s accounting and financial reporting systems will be maintained
in conformance with generally accepted accounting principles (GAAP)
and the standards set by the Governmental Accounting Standards Board
(GASB) and the Government Finance Officers Association (GFOA).
2. An independent public accounting firm will perform an annual audit. The
auditor’s opinion will be included with the City’s published
Comprehensive Annual Financial Report (CAFR).
3. The City’s CAFR will be submitted to the GFOA Certification of
Achievement for Excellence in Financial Reporting Program. The
financial report should be in conformity with GAAP, demonstrate
compliance with finance related legal and contractual provisions provide
full disclosure of all financial activities and related matters, and minimize
ambiguities and potentials for misleading inference.
4. The City’s budget document will be submitted to the GFOA Distinguished
Budget Presentation Program. The budget should satisfy criteria as a
financial and programmatic policy document, as a comprehensive
financial plan, as an operations guide for all organizational units and as a
communications device for all significant budgetary issues, trends and
resources.
5. Financial systems will be maintained to monitor revenues, expenditures,
and program performance on an ongoing basis.
6. Monthly and quarterly reports shall be prepared and presented to the
Board of Directors on a timely basis.
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OTHER AGENCIES
One of the budget policies of the Mayor and Board of Directors is to support
other agencies that provide services that are important to the City’s quality of life.
The agencies that have had City support are described below:
The Arkansas Arts Center, located in a City park, serves the metropolitan area
and provides a wide array of cultural opportunities to citizens of all ages and
interests.
The Arkansas Museum of Discovery enhances the cultural opportunities in the
metropolitan area and has opened a new and larger museum located in the River
Market District. This project was funded through the FUTURE-Little Rock
initiatives and is now funded from the General Fund.
The Central Arkansas Transit Authority provides vital public transportation
services to much of the metropolitan area.
The Chamber of Commerce promotes economic growth in the area, and is
another example of a public and private partnership.
The County Health Department provides health care services to residents of
both the City and Pulaski County. The State Health Department directs its
operations. It receives operating support from both the City and the County.
The Downtown Partnership promotes economic development for downtown
and is an example of public and private partnerships to promote growth and
development of the City.
Metroplan is a council of local governments that provides area-wide
transportation and other planning and support services to its members.
County Regional Detention Center serves the residents of both the city and
Pulaski County. The County directs its operations and it receives operating
support from the City and all jurisdictions in the County.
The Pulaski Area Geographical Information System (PAGIS) is a consortium
of local government agencies formed by inter-local agreement to develop,
maintain and distribute spatial based information and graphics. Current members
are Little Rock, North Little Rock, Pulaski County, Central Arkansas Water and
Wastewater commissions of Little Rock and North Little Rock.
Jack Stephens Youth Golf Academy/First Tee of Central Arkansas has a
nine (9)-hole regulation golf course, nine (9)-hole par three (3) golf course, full-
service driving range, practice putting green, full-service pro shop and indoor
teaching facilities. The purpose of this facility is to impact the lives of the young
people of Central Arkansas by providing educational programs that build
character, instill life-enhancing values and promote healthy choices through the
game of golf. The facility provides an opportunity for Central Arkansas’ young
people to learn the game of golf regardless of their socio-economic status.
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The Metro Little Rock Alliance (MLRA) is a twelve-county economic
development organization representing a population of a million people including
Little Rock. It was created to cultivate regional growth and prosperity throughout
the area. The MLRA markets Little Rock and the region’s strengths and
advantages to prospective companies and the site location consultants for the
purpose of attracting investment and creating jobs.
Little Rock City Beautiful Commission promotes public interest in the general
improvement of the appearance of the City of Little Rock; and establishes,
subject to the Little Rock City Board of Directors approval, regulations of
aesthetic quality for public and private lands and improvements.
2013 2014 2015
Budget Budget Budget
Central Arkansas Transit $8,208,468 $8,534,663 $8,686,869
County Regional Detention Center 1,050,000 1,050,000 1,063,313 (1)
Arkansas Arts Center 400,000 400,000 550,000 (2)
Museum of Discovery 200,000 200,000 200,000
Chamber of Commerce 200,000 200,000 200,000
Metroplan 178,042 178,042 178,042
Downtown Partnership 160,000 160,000 175,000
PAGIS 136,300 135,800 135,800
Metro Little Rock Alliance 100,000 100,000 100,000
First Tee 91,500 91,500 191,500
County Bond Payment 56,100 56,100 56,100
St. Vincent 25,381 25,381 25,381
LR City Beautiful Commission 2,500 2,500 2,500
Total $10,808,291 $11,133,986 $11,564,505
(2) The increase is primarily for building maintenance.
APPROPRIATIONS FOR OTHER AGENCIES
(2) The increase for the Pulaski County Jail support in combination with funds
available from the local jail fine special project in the amount of $791,263 will bring
total Pulaski County Jail support to $1,854,576. This represents a 5% increase
over last year.
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Budget Summaries
City of Little Rock, Arkansas
Operating Budget 2015
BUDGET SUMMARIES
The following schedules summarize the audited 2013 operating results, the 2014
unaudited operating results, and the approved 2015 operating budget. The
summaries are organized by fund type in a manner that is consistent with the
fund organization in the City’ audited Comprehensive Annual Financial Report.
The first summary is a recap of the entire six (6) fund types included in this
section. Each of the fund types is summarized and individual fund budget
schedules follow the summaries. The amounts reflected in this section are
accumulated as follows: individual fund totals are included in the fund type
summary; then the fund type summary totals are included in the recap of all fund
types.
The City is required by state statue to budget for the administration, operation,
maintenance and improvements of various City operations. The budget is
designed to demonstrate compliance with legal requirements. Other funds
submitted are for informational purposes only.
The Cities operating budget includes the following funds:
General;
Street;
Fleet Services;
Vehicle Storage Facility;
Waste Disposal;
Parking Garages;
The six types of funds included in the budget summaries are:
General;
Special Revenue;
Capital;
Proprietary;
Fiduciary; and
Debt Service.
For more information regarding these funds, see the section entitled FINANCIAL
STRUCTURE.
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Enterprise Fleet
General Street Funds Services Total
Revenues
General Property Taxes $27,276,348 $5,489,300 $0 $32,765,648
Sales Taxes 96,684,815 0 96,684,815
License and Permits 11,026,550 289,900 11,316,450
Intergovernmental 7,002,433 12,672,900 0 19,675,333
Charge for Service 11,332,650 14,700 20,805,010 13,345,076 45,497,436
Fines and Fees 3,161,210 0 3,161,210
Utility Franchise Fees 28,744,707 0 28,744,707
Investment Income 200,000 38,600 57,800 296,400
Miscellaneous 766,826 120,000 3,450 890,276
Transfers In 7,994,672 1,714,726 0 9,709,398
Carryover 550,000 550,000
Total Revenues 194,740,211 20,050,226 21,156,160 13,345,076 249,291,673
Expenditures
Personnel 139,939,883 10,291,815 6,000,832 3,693,450 159,925,980
Supplies and Material 6,338,170 1,188,902 1,715,747 6,640,515 15,883,334
Repairs and Maintenance 7,093,723 2,826,578 3,242,297 254,450 13,417,048
Contractual 21,789,639 2,931,714 5,182,553 2,549,210 32,453,116
Closure/Post Closure 247,945 247,945
Capital Outlay 370,000 2,342,000 156,650 2,868,650
Depreciation and Amortization 1,735,400 1,735,400
Debt Service 7,714,717 742,501 8,457,218
Transfers Out 11,494,079 469,217 1,816,098 13,779,394
Total Expenditures 194,740,211 20,050,226 20,683,373 13,294,275 248,768,085
Net Change in Fund Balance 00472,787 50,801 523,588
Fund Balances - Beginning 19,598,183 5,846,782 18,498,758 2,488,051 $46,431,774
Fund Balances - Ending $19,598,183 $5,846,782 $18,971,545 $2,538,852 $46,955,362
2015 Operating Funds Budget Summaries
This presentation includes restricted reserves of $9,418,000 in the General Fund.
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
$180,000,000
$200,000,000
General
Fund
Street Fund Enterprise
Funds
Fleet
Services
Fund
Revenues
Expenditures
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Police
$68,885,072
35.37%
All Other
$31,007,791
15.92%
Property
Taxes
$27,276,348
14.01%
Utility
Franchises
$28,744,707
14.76%
Sales Taxes
$96,684,815
49.65%
Transfers
$11,494,079
5.90%
General
Government
$28,062,042
14.41%
Fire
$46,232,253
23.74%
Uses of Funds
for 2015
Sources of Funds
for 2015
FY 2015 GENERAL FUND
Parks &
Recreation
$9,958,932
5.11%
All Other
$23,374,106
12.00%
Zoo
$6,733,727
3.46%
Licenses &
Permits
$11,026,550
5.66%
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INTERNAL DEBT
GENERAL SPECIAL CAPITAL ENTERPRISE SERVICE FIDUCIARY SERVICE
FUNDS REVENUES PROJECTS FUNDS FUND FUNDS FUNDS
2013
REVENUES: 205,452,403$ 34,605,044$ 86,095,605$ 22,060,409$ 12,703,594$ 36,606,098$ 21,056,314$
EXPENDITURES: 196,418,193 33,070,540 34,096,934 20,055,950 12,683,067 72,585,422 21,470,895
REVENUES OVER (UNDER)
EXPENDITURES 9,034,210 1,534,504 51,998,671 2,004,459 20,527 (35,979,325) (414,581)
BEGINNING FUND BAL. 26,490,499 9,817,809 47,046,723 16,559,535 2,582,681 177,820,596 20,581,721
ENDING FUND BAL. 35,524,709$ 11,352,313$ 99,045,394$ 18,563,994$ 2,603,208$ 141,841,271$ 20,167,141$
2014
REVENUES: 200,739,516$ 31,175,903$ 24,351,705$ 21,136,007$ 13,144,531$ 40,911,159$ 21,546,086$
EXPENDITURES: 202,038,716 32,561,444 42,718,590 21,201,243 13,259,688 36,889,277 20,805,368
REVENUES OVER (UNDER)
EXPENDITURES (1,299,199) (1,385,541) (18,366,884) (65,236) (115,157) 4,021,882 740,717
BEGINNING FUND BAL. 35,524,709 11,352,313 99,045,395 18,563,994 2,603,208 141,841,271 20,167,141
ENDING FUND BAL. 34,225,509$ 9,966,772$ 80,678,511$ 18,498,758$ 2,488,051$ 145,863,153$ 20,907,858$
2015
REVENUES: 194,740,211$ 20,050,226$ -$ 21,156,160$ 13,345,076$ -$ -$
EXPENDITURES: 194,740,211
20,050,226 - 20,683,373 13,294,275 - -
REVENUES OVER (UNDER)
EXPENDITURES - - - 472,787 50,801 - -
BEGINNING FUND BAL. 34,225,509 9,966,772 80,678,511 18,498,758 2,488,051 145,863,153 20,907,858
ENDING FUND BAL. 34,225,509$ 9,966,772$ 80,678,511$ 18,971,545$ 2,538,852$ 145,863,153$ 20,907,858$
CITY OF LITTLE ROCK
BUDGET SUMMARY BY FUND TYPE
FOR YEARS 2013 - 2015
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ADOPTED
ACTUAL AMENDED BUDGET
2013 2014 2015
GENERAL FUND
REVENUES: 185,532,008$ 189,866,530$ 194,740,211$
EXPENDITURES: 184,308,030 189,866,530 194,740,211
REVENUES OVER (UNDER)
EXPENDITURES 1,223,978 - -
BEGINNING FUND BALANCE 18,374,205 19,598,183 19,598,183
ENDING FUND BALANCE 19,598,183$ 19,598,183$ 19,598,183$
SPECIAL PROJECTS & SEIZED MONEY FUND
REVENUES: 19,920,395$ 10,872,986$ -$
EXPENDITURES: 12,110,163 12,172,186 -
REVENUES OVER (UNDER)
EXPENDITURES 7,810,232 (1,299,199) -
BEGINNING FUND BALANCE 8,116,293 15,926,526 14,627,326
ENDING FUND BALANCE 15,926,526$ 14,627,326$ 14,627,326$
TOTAL BEGINNING FUND BALANCE 26,490,499$ 35,524,709$ 34,225,509$
TOTAL REVENUES 205,452,403 200,739,516 194,740,211
TOTAL EXPENDITURES 196,418,193 202,038,716 194,740,211
TOTAL ENDING FUND BALANCE 35,524,709$ 34,225,509$ 34,225,509$
The City of Little Rock utilizes a program budget for public information purposes and for Mayor &
Board consideration. Line item information is principally used for budgetary management and control
purposes.
GENERAL GOVERNMENT SUMMARY
OPERATING BUDGET
2013 - 2015
The sources of operating revenue and the trends affecting them are discussed in the section of the
budget titled REVENUES. The details of the operating budget by department and by service
program are contained in the section of the budget titled EXPENDITURES. The transfers out
primarily consist of appropriations for special projects and appropriations for the FUTURE Little
Rock and new sales tax initiatives.
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ADOPTED
ACTUAL AMENDED BUDGET
2013 2014 2015
STREET
REVENUES: 17,582,631$ 19,363,696$ 20,050,226$
EXPENDITURES: 15,336,023 19,363,696 20,050,226
REVENUES OVER (UNDER)
EXPENDITURES 2,246,607 - -
BEGINNING FUND BALANCE 3,600,174 5,846,782 5,846,782
ENDING FUND BALANCE 5,846,782$ 5,846,782$ 5,846,782$
SPECIAL PROJECT - STREET
REVENUES: 608$ 914,044$ -$
EXPENDITURES: 31,955 671,532 -
REVENUES OVER (UNDER)
EXPENDITURES (31,347) 242,512 -
BEGINNING FUND BALANCE 172,984 141,636 384,148
ENDING FUND BALANCE 141,636$ 384,148$ 384,148$
SPECIAL PROJECTS
REVENUES: 5,193,892$ 3,963,517$ -$
EXPENDITURES: 7,183,131 4,308,684 -
REVENUES OVER (UNDER)
EXPENDITURES (1,989,239) (345,167) -
BEGINNING FUND BALANCE 4,506,305 2,517,066 2,171,899
ENDING FUND BALANCE 2,517,066$ 2,171,89
9
$ 2,171,89
9
$
SPECIAL REVENUE FUND
S
OPERATING BUDGET
2013 - 2015
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ADOPTED
ACTUAL AMENDED BUDGET
2013 2014 2015
SPECIAL REVENUE FUND
S
OPERATING BUDGET
2013 - 2015
INFRASTRUCTURE
REVENUES: 48$ 1,002$ -$
EXPENDITURES: 42,912 1,002 -
REVENUES OVER (UNDER)
EXPENDITURES (42,863) - -
BEGINNING FUND BALANCE 42,863 -
ENDING FUND BALANCE (0)$ -$ -$
EMERGENCY 911
REVENUES: 1,346,610$ 1,306,869$ -$
EXPENDITURES: 1,264,798 1,306,869 -
REVENUES OVER (UNDER)
EXPENDITURES 81,811 - -
BEGINNING FUND BALANCE 2,823 84,634 84,634
ENDING FUND BALANCE 84,634$ 84,634$ 84,634$
GRANTS
REVENUES: 7,638,665$ 3,611,890$ -$
EXPENDITURES: 6,607,395 3,887,473 -
REVENUES OVER (UNDER)
EXPENDITURES 1,031,270 (275,583) -
BEGINNING FUND BALANCE (2,397) 1,028,873 753,290
ENDING FUND BALANCE 1,028,873$ 753,290$ 753,290$
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ADOPTED
ACTUAL AMENDED BUDGET
2013 2014 2015
SPECIAL REVENUE FUND
S
OPERATING BUDGET
2013 - 2015
CDBG/HIPP/NHSP
REVENUES: 2,842,591$ 2,014,885$ -$
EXPENDITURES: 2,604,326 3,022,188 -
REVENUES OVER (UNDER)
EXPENDITURES 238,265 (1,007,303) -
BEGINNING FUND BALANCE 1,495,057 1,733,322 726,019
ENDING FUND BALANCE 1,733,322$ 726,019$ 726,019$
TOTAL BEGINNING FUND BALANCE 9,817,809$ 11,352,31
3
$ 9,966,772$
TOTAL REVENUES 34,605,044 31,175,903 20,050,226
TOTAL EXPENDITURES 33,070,54
0
32,561,44
4
20,050,22
6
TOTAL ENDING FUND BALANCE 11,352,31
3
$ 9,966,772$ 9,966,772$
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ADOPTED
ACTUAL AMENDED BUDGET
2013 2014 2015
1988 CAPITAL IMPROVEMENTS
REVENUES: 285$ -$ -$
EXPENDITURES: - - -
REVENUES OVER (UNDER)
EXPENDITURES 285 - -
BEGINNING FUND BALANCE (285) - -
ENDING FUND BALANCE -$ -$ -$
1998 CAPITAL IMPROVEMENTS
REVENUES: 428$ 5,234$ -$
EXPENDITURES: 344,667 75,632 -
REVENUES OVER (UNDER)
EXPENDITURES (344,240) (70,399) -
BEGINNING FUND BALANCE 728,818 384,578 314,180
ENDING FUND BALANCE 384,578$ 314,180$ 314,180$
2009A PARKS AND RECREATIO
N
REVENUES: 54$ 29$ -$
EXPENDITURES: 71,431 479,663
REVENUES OVER (UNDER)
EXPENDITURES (71,377) (479,634) -
BEGINNING FUND BALANCE 551,011 479,634 (0)
ENDING FUND BALANCE 479,634$ (0)$ (0)$
CAPITAL FUND
S
OPERATING BUDGET
2013 - 2015
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ADOPTED
ACTUAL AMENDED BUDGET
2013 2014 2015
CAPITAL FUND
S
OPERATING BUDGET
2013 - 2015
SHORT TERM FINANCING
REVENUES: 301,809$ 1,548$ -$
EXPENDITURES: 468,051 96,268 -
REVENUES OVER (UNDER)
EXPENDITURES (166,242) (94,720) -
BEGINNING FUND BALANCE 288,217 121,975 27,255
ENDING FUND BALANCE 121,975$ 27,255$ 27,255$
2004 CAPITAL IMPROVEMENTS
REVENUES: 1$ 100$ -$
EXPENDITURES: 3,636 -
REVENUES OVER (UNDER)
EXPENDITURES (3,635) 100 -
BEGINNING FUND BALANCE 10,323 6,689 6,789
ENDING FUND BALANCE 6,689$ 6,789$ 6,789$
2008 & 2009 LIBRARY IMPROVEMENT BOND
REVENUES: 11$ 1$ -$
EXPENDITURES: 3,137 - -
REVENUES OVER (UNDER)
EXPENDITURES (3,126) 1 -
BEGINNING FUND BALANCE 3,326 201 202
ENDING FUND BALANCE 201$ 202$ 202$
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ADOPTED
ACTUAL AMENDED BUDGET
2013 2014 2015
CAPITAL FUND
S
OPERATING BUDGET
2013 - 2015
2012 LIBRARY IMPROVEMENT BOND
REVENUES: 14,906$ 19,636$ -$
EXPENDITURES: 11,357,071 6,500,416 -
REVENUES OVER (UNDER)
EXPENDITURES (11,342,165) (6,480,780) -
BEGINNING FUND BALANCE 23,019,916 11,677,751 5,196,971
ENDING FUND BALANCE 11,677,751$ 5,196,971$ 5,196,971$
2012-2021 CAPITAL IMPROVEMENTS FUND (3/8 CENT SALES TAX
)
REVENUES: 25,219,666$ 24,128,647$
EXPENDITURES: 17,611,223 26,158,434 -
REVENUES OVER (UNDER)
EXPENDITURES 7,608,443 (2,029,787) -
BEGINNING FUND BALANCE 22,445,397 30,053,840 28,024,053
ENDING FUND BALANCE 30,053,840$ 28,024,053$ 28,024,053$
2013 CAPITAL IMPROVEMENT FUND (STREETS AND DRAINAGE
)
REVENUES: 60,558,445$ 196,511$
EXPENDITURES: 4,237,718 9,408,176 -
REVENUES OVER (UNDER)
EXPENDITURES 56,320,727 (9,211,665) -
BEGINNING FUND BALANCE - 56,320,727 47,109,062
ENDING FUND BALANCE 56,320,727$ 47,109,062$ 47,109,062$
TOTAL CAPITAL BEGINNING BALANC
E
47,046,723$ 99,045,395$ 80,678,511$
TOTAL REVENUES 86,095,605 24,351,705 -
TOTAL EXPENDITURE
S
34,096,934 42,718,590 -
TOTAL CAPITAL ENDING FUND BALANC
E
99,045,394$ 80,678,511$ 80,678,511$
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ADOPTED
ACTUAL AMENDED BUDGET
2013 2014 2015
V
EHICLE STORAGE FACILITY
REVENUES: 1,362,661$ 1,348,840$ 1,382,410$
EXPENDITURES: 1,333,661 1,321,150 1,359,144
REVENUES OVER (UNDER)
EXPENDITURES 29,001 27,690 23,266
BEGINNING NET POSITION (714,450) (685,450) (657,760)
ENDING NET POSITION (685,450
)
$ (657,760
)
$ (634,494
)
$
WASTE DISPOSAL
REVENUES: 18,561,027$ 17,563,000$ 17,577,000$
EXPENDITURES: 16,617,509 17,655,926 17,127,479
REVENUES OVER (UNDER)
NET INCOME (LOSS) 1,943,518 (92,926) 449,521
BEGINNING NET POSITION 16,836,423 18,779,941 18,687,015
ENDING NET POSITION 18,779,941$ 18,687,01
5
$ 19,136,53
6
$
PARKING GARAGE
S
REVENUES: 2,136,721$ 2,224,167$ 2,196,750$
EXPENDITURES: 2,104,780 2,224,167 2,196,750
REVENUES OVER (UNDER)
NET INCOME (LOSS) 31,940 - -
BEGINNING NET POSITION 437,562 469,502 469,502
ENDING NET POSITION 469,502$ 469,502$ 469,502$
ENTERPRISE FUNDS
OPERATING BUDGET
2013 - 2015
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ADOPTED
ACTUAL AMENDED BUDGET
2013 2014 2015
ENTERPRISE FUNDS
OPERATING BUDGET
2013 - 2015
TOTAL ENTERPRISE BEGINNING NET POSITION 16,559,53
5
$ 18,563,99
4
$ 18,498,75
8
$
TOTAL REVENUES 22,060,40
9
21,136,00
7
21,156,16
0
TOTAL EXPENDITURES 20,055,95
0
21,201,24
3
20,683,37
3
TOTAL ENTERPRISE ENDING NET POSITION 18,563,99
4
$ 18,498,75
8
$ 18,971,54
5
$
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ADOPTED
ACTUAL AMENDED BUDGET
2013 2014 2015
FLEET INTERNAL SERVICE FUND
REVENUES: 12,703,594$ 13,144,531$ 13,345,076$
EXPENDITURES: 12,683,067 13,259,688 13,294,275
REVENUES OVER (UNDER)
EXPENDITURES 20,527 (115,157) 50,801
BEGINNING NET POSITION 2,582,681 2,603,208 2,488,051
ENDING NET POSITION 2,603,20
8
$ 2,488,051$ 2,538,852$
FLEET INTERNAL SERVICE FUND
OPERATING BUDGET
2013 - 2015
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ADOPTED
ACTUAL AMENDED BUDGET
2013 2014 2015
+
POLICE PENSION & RELIEF FUND
ADDITIONS: 7,305,604$ -$
DEDUCTIONS: 54,890,497 -
NET INCREASE (DECREASE) (47,584,893) - -
NET POSITION HELD IN TRUST, BEGINNING 47,584,893 (0) (0)
NET POSITION HELD IN TRUST, ENDING (0)$ (0)$ (0)$
Administration of the Police Pension & Relief Fund was transferred to LOPFI at the end of 2013.
FIRE PENSION & RELIEF FUND
ADDITIONS: 13,768,307$ 8,600,144$ -$
DEDUCTIONS: 11,176,236 11,419,280 -
NET INCREASE (DECREASE) 2,592,071 (2,819,136) -
NET POSITION HELD IN TRUST, BEGINNING 71,075,478 73,667,549 70,848,413
NET POSITION HELD IN TRUST, ENDING 73,667,549$ 70,848,413$ 70,848,413$
NON-UNIFORM DEFINED BENEFIT FUND
ADDITIONS: 3,633,030$ 2,310,897$ -$
DEDUCTIONS: 1,769,238 1,952,792 -
NET INCREASE (DECREASE) 1,863,792 358,105 -
NET POSITION HELD IN TRUST, BEGINNING 9,990,163 11,853,955 12,212,060
NET POSITION HELD IN TRUST, ENDING 11,853,955$ 12,212,060$ 12,212,060$
FIDUCIARY FUNDS
OPERATING BUDGET
2013 - 2015
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ADOPTED
ACTUAL AMENDED BUDGET
2013 2014 2015
FIDUCIARY FUNDS
OPERATING BUDGET
2013 - 2015
NON-UNIFORM DEFINED CONTRIBUTION
ADDITIONS: 8,746,491$ (2,475,931)$ -$
DEDUCTIONS: 3,720,032 19,635,588 -
NET INCREASE (DECREASE) 5,026,460 (22,111,519) -
NET POSITION HELD IN TRUST, BEGINNING 38,656,708 43,683,168 21,571,649
NET POSITION HELD IN TRUST, ENDING 43,683,168$ 21,571,649$ 21,571,649$
2014 NON-UNIFORM DEFINED BENEFIT FUND
ADDITIONS: 31,103,085$ -$
DEDUCTIONS: 294,158 -
NET INCREASE (DECREASE) - 30,808,927 -
NET POSITION HELD IN TRUST, BEGINNING - - 30,808,927
NET POSITION HELD IN TRUST, ENDING -$ 30,808,927$ 30,808,927$
401 (A) PENSION FUND
ADDITIONS: 2,791,794$ 1,059,146$ -$
DEDUCTIONS: 1,010,136 3,566,368 -
NET INCREASE (DECREASE) 1,781,659 (2,507,222) -
NET POSITION HELD IN TRUST, BEGINNING 8,758,230 10,539,889 8,032,667
NET POSITION HELD IN TRUST, ENDING 10,539,889$ 8,032,667$ 8,032,667$
The City implemented a new defined benefit plan for non-uniform employees in 2014. Participants were
allowed to utilize funds from the defined contribution plan to purchase years of service in the new defined
benefit plan.
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ADOPTED
ACTUAL AMENDED BUDGET
2013 2014 2015
FIDUCIARY FUNDS
OPERATING BUDGET
2013 - 2015
HEALTH MANAGEMENT TRUST FUND
ADDITIONS: 360,871$ 313,818$ -$
DEDUCTIONS: 19,284 21,091 -
NET INCREASE (DECREASE) 341,587 292,727 -
NET POSITION HELD IN TRUST, BEGINNING 1,755,124 2,096,711 2,389,438
NET POSITION HELD IN TRUST, ENDING 2,096,711$ 2,389,438$ 2,389,438$
TOTAL NET POSITION BEGINNING 177,820,596$ 141,841,271$ 145,863,153$
TOTAL ADDITIONS 36,606,098 40,911,159 -
TOTAL DEDUCTIONS 72,585,422 36,889,277 -
TOTAL NET POSITION ENDING 141,841,271$ 145,863,153$ 145,863,153$
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ADOPTED
ACTUAL AMENDED BUDGET
2013 2014 2015
2002 CIP JUNIOR LIEN BONDS
REVENUE: 318,556$ 319,963$ -$
EXPENDITURES: 320,298 319,755 -
NET INCREASE (DECREASE) (1,742) 208 -
BEGINNING FUND BALANCE 19,831 18,089 18,297
ENDING FUND BALANCE 18,089$ 18,297$ 18,297$
2004 IMPROVEMENT BONDS DEBT SERVICE
REVENUE: 1,665$ -$ -$
EXPENDITURES: 12,140,829 - -
NET INCREASE (DECREASE) (12,139,164) - -
BEGINNING FUND BALANCE 12,139,164 -
ENDING FUND BALANCE (0)$ -$ -$
2007 CAPITAL IMP. REVENUE REFUNDING BOND
REVENUE: 1,436,390$ 1,447,667$ -$
EXPENDITURES: 1,436,300 1,441,088 -
NET INCREASE (DECREASE) 90 6,579 -
BEGINNING FUND BALANCE 19,646 19,736 26,315
ENDING FUND BALANCE 19,736$ 26,315$ 26,315$
DEBT SERVICE FUNDS
OPERATING BUDGET
2013 - 2015
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ADOPTED
ACTUAL AMENDED BUDGET
2013 2014 2015
DEBT SERVICE FUNDS
OPERATING BUDGET
2013 - 2015
2008 LIBRARY IMPROVEMENT BOND
REVENUE: 3,595,478$ 3,746,758$ -$
EXPENDITURES: 3,912,055 3,735,180 -
NET INCREASE (DECREASE) (316,576) 11,578 -
BEGINNING FUND BALANCE 4,192,578 3,876,002 3,887,580
ENDING FUND BALANCE 3,876,002$ 3,887,580$ 3,887,580$
2009 PARKS & REC CAPITAL IMPROVEMENT BOND
REVENUE: 1,307,128$ 1,363,122$ -$
EXPENDITURES: 1,307,778 1,306,911 -
NET INCREASE (DECREASE) (649) 56,211 -
BEGINNING FUND BALANCE 2,121,671 2,121,021 2,177,232
ENDING FUND BALANCE 2,121,021$ 2,177,232$ 2,177,232$
2012 LIBRARY IMPROVEMENT BONDS
REVENUE: 3,498,679$ 3,418,732$ -$
EXPENDITURES: 2,042,898 3,441,205 -
NET INCREASE (DECREASE) 1,455,781 (22,473) -
BEGINNING FUND BALANCE 2,088,831 3,544,612 3,522,139
ENDING FUND BALANCE 3,544,612$ 3,522,139$ 3,522,139$
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ADOPTED
ACTUAL AMENDED BUDGET
2013 2014 2015
DEBT SERVICE FUNDS
OPERATING BUDGET
2013 - 2015
2013 CAPITAL IMPROVEMENT BONDS
REVENUE: 10,898,418$ 11,249,844$ -$
EXPENDITURES: 310,738 10,561,230 -
NET INCREASE (DECREASE) 10,587,680 688,614 -
BEGINNING FUND BALANCE - 10,587,680 11,276,294
ENDING FUND BALANCE 10,587,680$ 11,276,294$ 11,276,294$
TOTAL BEGINNING FUND BALANCE 20,581,721$ 20,167,141$ 20,907,858$
TOTAL REVENUES 21,056,314 21,546,086 -
TOTAL EXPENDITURES 21,470,895 20,805,368 -
TOTAL ENDING FUND BALANCE 20,167,140$ 20,907,858$ 20,907,858$
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City of Little Rock, Arkansas 2015 Operating Budget
2015 Five Year Forecast
Little Rock Code Section 2-214 requires the Board of Directors to adopt an
annual budget on or before December 30 of each year. A budget is balanced
when appropriated expenses do not exceed the sum of estimated net revenues
and available fund balances. The proposed 2015 budgets are balanced and
fiscally responsible.
All fund designations and reserves are evaluated annually for long-term
adequacy and use requirements in conjunction with development of the City’s
five-year financial plan. A 10% reserve requirement is utilized for planning
purposes for all funds with the exception of the Solid Waste Fund, which has a
15% unrestricted retained earnings reserve requirement. In addition, each
annual operating budget will include a contingency appropriation in the general
fund sufficient to provide for unforeseen needs of an emergency nature for that
year. The desired level of the contingency appropriation each year shall be
based on the average of the three prior years’ experience levels but no less than
0.5% of General Fund revenue for the current fiscal year. The contingency
appropriation in the 2015 General Fund budget is $1,000,000 or approximately
0.51% of estimated revenue, including transfers in.
Per the City’s financial policy, the goal was to set aside $10,000,000 or 10% of
General Fund revenues, whichever is greater, into a restricted reserve fund on or
before December 31, 2005. However, due to economic conditions in the past
several years, the City has not met this goal. The restricted reserve is currently
$9,418,000. Contingency appropriations, which are not utilized during the fiscal
year to meet unforeseen needs, will be added to the restricted reserve until the
desired level is achieved. While, the City has not been able to increase the
reserve to the desired level, the City has not drawn from the restricted reserve to
balance the budget. The City anticipates an addition to the restricted reserve in
2015. The City Board of Directors will evaluate funds available following
completion of the 2015 annual audit to determine the amount of the addition.
Citizen demand for services has outpaced revenue growth in the last few years.
The citizens of Little Rock approved a one (1)-cent sales tax on September 13,
2011 to allow the City to fill critical positions that have remained vacant for many
years and to provide the City the opportunity to move forward with much needed
programs and capital projects. All of the services and projects funded by the tax
increase support the City goals and objectives centered on public safety,
economic development, basic City services, infrastructure, and quality of life.
The tax increase, which went into effect January 1, 2012, includes a permanent
5/8-cent operations tax and a 3/8-cent ten (10)-year capital tax, that will provide
additional Police Officers, more Code Enforcement Officers, new Fire and Police
facilities and a new emergency communications system. The capital projects
supported by the new 3/8-cent tax are highlighted in the Capital Improvements
section of the Budget Document. The ongoing operating expenses associated
with the capital projects are supported by the 5/8-cent portion of the new sales
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City of Little Rock, Arkansas 2015 Operating Budget
tax. These expenses are phased into the five year forecast based on the
anticipated completion schedule of the capital projects. Consistent with the first
“must do” goal of the Mayor and Board of Directors, the City plans to complete
the majority of the public safety projects funded by the 3/8-cent ten (10)-year
capital tax in the first five (5) years. In addition, emphasis is placed on
completing infrastructure projects in each of the City’s seven (7) Wards, utilizing
citizen input through community meetings to determine projects that will be
completed in three (3)-year cycles.
The City has taken steps to plan for the future with the five-year forecast based
on the estimated revenues and operating expenditures for 2015 – 2019. The
forecast for 2015 – 2019 is a planning tool used for the projections. The Mayor
and Board of Directors have only approved the 2015 budget. However, the
Board is committed to providing financial stability in order to maintain critical
programs.
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FY15 FY16 FY17 FY18 FY19
Adopted
Projected Projected Projected Projected
General Fund
Beginning Fund Balance $19,598,183 $20,598,183 $21,598,183 $22,618,183 $23,648,183
Plus: Est. Revenue 194,740,211 199,416,448 203,240,733 204,282,545 207,703,168
Less: Est. Expenses
General Administrative 28,062,042 28,469,469 27,916,185 24,468,912 23,394,193
Board of Directors 342,027 348,868 355,845 362,962 372,036
Community Programs 423,578 432,050 440,691 449,504 460,742
City Attorney 1,836,901 1,873,639 1,911,112 1,949,334 1,998,067
District Court - First Division 1,405,790 1,433,906 1,462,584 1,491,836 1,529,131
District Court - Second Division 1,248,245 1,273,210 1,298,674 1,324,648 1,357,764
District Court - Third Division 626,782 639,318 652,104 665,146 681,775
Finance 3,204,124 3,268,206 3,333,571 3,400,242 3,485,248
Human Resources 1,673,177 1,706,641 1,740,773 1,775,589 1,819,979
Information Technology 4,679,784 4,773,380 4,868,847 4,966,224 5,090,380
Planning and Development 2,564,192 2,615,476 2,667,785 2,721,141 2,789,170
Housing & Neighborhood Programs 5,790,389 5,916,197 6,034,521 6,155,211 6,309,091
Public Works 1,159,922 1,183,120 1,206,783 1,230,919 1,261,691
Parks & Recreation*** 9,958,932 10,521,431 10,731,859 10,946,496 11,220,159
River Market 1,209,164 1,233,347 1,258,014 1,283,175 1,315,254
Golf 2,308,904 2,355,082 2,402,184 2,450,227 2,511,483
Jim Dailey Fitness & Aquatics 901,127 919,150 937,533 956,283 980,190
Zoo 6,733,727 6,868,402 7,005,770 7,145,885 7,324,532
Fire ** 46,232,253 47,388,059 49,174,450 50,403,811 51,663,906
Police 68,885,072 70,473,539 71,883,010 73,937,392 75,742,314
Vacancy Reductions (6,000,000) (6,000,000) (6,000,000) (6,000,000) (6,000,000)
Transfers Out (including contingency) 11,494,079 11,723,961 11,958,440 12,197,609 12,396,062
194,740,211 199,416,448 203,240,733 204,282,546 207,703,168
Anticipated contingency/reserve 1,000,000 1,000,000 1,020,000 1,030,000 1,040,000
Ending Fund Balance * $20,598,183 $21,598,183 $22,618,183 $23,648,183 $24,688,183
Reserve Requirement
(10% of Revenues) $19,474,021 $19,941,645 $20,324,073 $20,428,255 $20,770,317
* 2015 Ending Fund Balance includes an estimated restricted reserve of $10,500,000.
** Includes the addition of 12 fire fighters in 2017 with the opening of the Southwest Little Rock Fire Station which is
scheduled for completion in 2016.
***Includes the addition of the West Central Community Center personnel and operations.
Street Fund
Beginning Balance $5,846,782 $5,846,782 $5,846,782 $5,846,782 $5,846,782
Plus: Est. Revenue 20,050,226 20,451,231 20,860,255 21,277,460 21,809,397
Less: Est. Expenses 20,050,226 20,451,231 20,860,255 21,277,460 21,809,397
Ending Balance $5,846,782 $5,846,782 $5,846,782 $5,846,782 $5,846,782
Reserve Requirement
(10% of revenue) $2,005,023 $2,045,123 $2,086,026 $2,127,746 $2,180,940
2015 - 2019 FORECAST
CITY OF LITTLE ROC
K
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FY15 FY16 FY17 FY18 FY19
Adopted
Projected Projected Projected Projected
2015 - 2019 FORECAST
CITY OF LITTLE ROC
K
Fleet Fund
Beginning Net Position $2,488,051 $2,538,852 $2,590,669 $2,643,522 $2,697,433
Plus: Est. Revenue 13,345,076 13,611,978 13,884,217 14,161,901 14,515,949
Less: Est. Expenses 13,294,275 13,560,161 13,831,364 14,107,991 14,460,691
Ending Net Position $2,538,852 $2,590,669 $2,643,522 $2,697,433 $2,752,691
Reserve Requirement
(10% of revenues) $1,334,508 $1,361,198 $1,388,422 $1,416,190 $1,451,595
Vehicle Storage Facility
Beginning Net Position ($657,760) ($634,494) ($610,763) ($586,557) ($561,867)
Plus: Est. Revenue 1,382,410 1,410,058 1,438,259 1,467,025 1,503,700
Less: Est. Expenses 1,359,144 1,386,327 1,414,053 1,442,334 1,478,393
Ending Net Position ($634,494) ($610,763) ($586,557) ($561,867) ($536,559)
Reserve Requirement
(10% of revenues) $138,241 $141,006 $143,826 $146,702 $150,370
Waste Disposal Fund
Beginning Net Position $18,687,015 $19,136,536 $18,952,048 $19,292,605 $19,292,186
Plus: Est. Revenue 17,577,000 17,577,036 17,645,334 17,714,278 17,767,421
Less: Est. Expenses 17,127,479 17,761,524 17,304,777 17,714,697 17,891,844
Ending Net Position $19,136,536 $18,952,048 $19,292,605 $19,292,186 $19,167,763
Reserve Requirement
(15% of revenues) $2,636,550 $2,636,555 $2,646,800 $2,657,142 $2,665,113
Parking Garages
Beginning Net Position $469,502 $469,502 $469,502 $469,502 $469,502
Plus: Est. Revenue 2,196,750 2,240,685 2,285,499 2,331,209 2,377,833
Less: Est. Expenses 2,196,750 2,240,685 2,285,499 2,331,209 2,377,833
Ending Net Position $469,502 $469,502 $469,502 $469,502 $469,502
A rate increase of $1.03 associated with recycling was implemented in 2013. No other rate increases are anticipated
during the five year forecast. Expenses reflect the reduction of debt service as bonds are retired and the capital
replacement needs.
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Revenues
CITY OF LITTLE ROCK
2015 BUDGET SUMMARY
ALL FUNDS RESOURCES
$249,291,673
Street
Fund
8.04%
Fleet
Services
5.35%
Waste
Disposal
7.05%
General
Fund
78.12%
Vehicle Storage
Facility
.55%
Parking
Garages
.88%
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2013 2014 2014 2015 14/15 %
REVENUES: ACTUAL ADOPTED AMENDED ADOPTED DIFF CHANGE
Property Taxes * $25,833,875 $26,548,180 $26,248,180 $27,276,348 $1,028,168 3.92%
Sales Tax 95,175,603 96,123,400 95,383,886 96,684,815 1,300,929 1.36%
Business Licenses 6,304,434 6,363,000 6,388,000 6,451,900 63,900 1.00%
Mixed Drinks 2,158,210 2,205,000 2,219,000 2,285,600 66,600 3.00%
Building, Related Permits 2,103,180 1,941,200 2,409,200 2,289,050 (120,150) -4.99%
Insurance Pension Turnback* 6,302,466 6,353,442 7,002,433 7,002,433 0 0.00%
Park Revenue 405,889 425,500 416,517 429,300 12,783 3.07%
River Market 547,110 607,000 607,000 607,000 0 0.00%
Golf 820,447 1,128,700 926,200 977,297 51,097 5.52%
Jim Dailey Fitness and Aquatic
Center
475,883 540,300 540,300 428,844 (111,456) -20.63%
Zoo 3,065,341 3,557,041 3,429,946 3,763,409 333,463 9.72%
Airport Reimbursement 3,145,985 3,194,900 3,152,200 3,183,700 31,500 1.00%
Salary Reimbursement 911 562,500 750,000 750,000 750,000 0 0.00%
Fines and Fees 3,232,544 3,199,875 3,009,875 3,161,210 151,335 5.03%
Utility Franchises 27,955,604 27,686,000 28,273,500 28,744,707 471,207 1.67%
Interest Earnings (58,336) 50,000 200,000 200,000 0 0.00%
All Other 2,089,972 1,810,100 1,873,550 1,959,926 86,376 4.61%
Transfers In 5,411,301 1,780,892 7,036,743 7,994,672 957,929 13.61%
Carryover 550,000 550,000 n/a
Total General Fund 185,532,008 184,264,530 189,866,530 194,740,211 4,873,681 2.57%
Other Budgeted Funds
Street 17,582,631 19,363,696 19,363,696 20,050,226 686,530 3.55%
Fleet Services 12,703,594 13,144,531 13,144,531 13,345,076 200,545 1.53%
Vehicle Storage Facility 1,362,661 1,348,840 1,348,840 1,382,410 33,570 2.49%
Waste Disposal 18,561,027 17,563,000 17,563,000 17,577,000 14,000 0.08%
Parking Garages 2,136,721 2,224,167 2,224,167 2,196,750 (27,417) -1.23%
Total Other Budgeted Funds 52,346,634 53,644,234 53,644,234 54,551,462 907,228 1.69%
Total All Budgeted Funds $237,878,642 $237,908,764 $243,510,764 $249,291,673 $5,780,909 2.43%
* Includes Property Tax and Pension Turnback funds associated with the Police and Fire Pension.
CITY OF LITTLE ROCK
2015 OPERATING REVENUES
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$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
2013 2014 2015
Sales Taxes Utility Franchises
All Other Property Taxes
General Government
Summary of Revenues
2013-2015
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2013 2014 2015
ACTUAL ADOPTED ADOPTED
GENERAL FUND
PROPERTY TAX
Property Taxes 17,027,827$ 17,567,560$ 18,270,300$
Pension Property Taxes 1,067,074 7,510,200 1,125,900
Homestead Taxes 7,247,568 1,082,600 7,484,100
Act 9 Industry Payment 102,473 377,820 376,048
Property Taxes LR Port Authority 388,933 10,000 20,000
Total Property Taxes 25,833,875 26,548,180 27,276,348
SALES TAX
County Sales & Use Tax 39,419,294 39,999,500 40,045,900
City Sales Tax 52,596,028 53,177,100 53,896,600
State Tax Turnback 3,160,281 2,946,800 2,742,315
Total Sales Taxes 95,175,603 96,123,400 96,684,815
BUSINESS LICENSES
General Business Licenses 6,304,434 6,363,000 6,451,900
Mixed Drinks Licenses 2,158,210 2,205,000 2,285,600
Total Business Licenses 8,462,644 8,568,000 8,737,500
PERMITS
Building & Excavation Permits 1,182,954 1,080,000 1,287,500
Electrical Permits 304,254 285,000 318,300
Plumbing Permits 267,227 255,000 317,250
HVAC Permits 264,793 244,000 267,800
Wrecker Franchise 81,879 75,000 96,000
Burn Permits 2,073 2,200 2,200
Total Permits 2,103,180 1,941,200 2,289,050
INTERGOVERNMENTAL
Insurance Turnback 2,961,546 2,961,500 3,701,684
Police and Fire Pension Insurance Turnback 3,340,920 3,391,942 3,300,749
Total Intergovernmental 6,302,466 6,353,442 7,002,433
POLICE SERVICES
Police Report 438,083 450,000 394,000
False Alarm 17,160 20,000 100,000
Airport - Security Guards 1,908,192 1,907,400 1,926,500
Total Police Services 2,363,435 2,377,400 2,420,500
FIRE SERVICES
Airport-Fire Protection 1,237,793 1,287,500 1,257,200
Total Fire Services 1,237,793 1,287,500 1,257,200
PARK REVENUE
SWLR Community Complex 97,607 100,000
95,000
Athletics Fees
103,533 97,800 108,400
Pavilion Rental 48,298 47,000 56,400
Community Center & Miscellaneous Fees 97,002 124,100 119,700
Admissions Revenue 40,086 35,000 35,000
Miscellaneous Revenue 19,363 21,600 14,800
Total Park Revenue 405,889 425,500
429,300
CITY OF LITTLE ROCK
2015 OPERATING REVENUE
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2013 2014 2015
ACTUAL ADOPTED ADOPTED
CITY OF LITTLE ROCK
2015 OPERATING REVENUE
RIVER MARKET
Admissions Revenue 195,179 220,000 220,000
Space Rental 351,931 387,000 387,000
Total River Market Revenue 547,110 607,000 607,000
GOLF
Concessions Revenue 114,764 136,500 138,100
Green Fees 879,380 949,000 887,900
Equipment Rental 465,858 585,400 512,200
Merchandise Sales 17,373 94,400 95,000
Miscellaneous Revenue 19,452 24,200 4,900
Parks Contra Revenue (Debt Service) (676,380) (660,800) (660,803)
Total Golf Revenue 820,447 1,128,700 977,297
JIM DAILEY FITNESS & AQUATIC CENTER
Annual Membership 46,853 50,000 50,000
Monthly Membership 209,957 227,500 189,000
Daily Fees 91,123 106,000 82,100
Corporate Fees 211,479 229,000 190,400
Special Fees 5,302 6,100 4,800
Other 58,096 69,600 52,600
Miscellaneous 15,404 6,300 14,100
Parks Contra Revenue (Debt Svc) (162,331) (154,200) (154,156)
Total Jim Dailey Fitness & Aquatic Center 475,883 540,300 428,844
ZOO
Membership 418,932 440,000 510,000
Zoo Admissions 1,727,285 2,147,191 2,289,600
Concessions 519,948 580,000 564,600
Token Sales 185,163 146,150 213,200
Education 37,584 61,500 31,000
Special Events 280,626 200,000 195,700
Zoo Rentals 52,466 70,000 58,500
Merchandise Sales 330,309 370,000 368,200
Miscellaneous 27,078 35,300 25,700
Parks Contra Revenue (Debt Svc) (514,050) (493,100) (493,091)
Total Zoo Revenue 3,065,341 3,557,041 3,763,409
MISCELLANEOUS CHARGES FOR SERVICES
Crossing Guards-LRSD Reimbursement 630,159 572,200 699,100
911 Services Reimbursement 562,500 750,000 750,000
Total Miscellaneous Services 1,192,659
1,322,200 1,449,100
FINES
Fines - Traffic 1,952,687 1,870,000 1,870,000
Fines - Criminal - Other 345,890 350,000 334,000
Probation Assessments 46,185 40,000 54,000
Additional Court Cost 19,420 19,500 19,500
Theft Diversion Class 100 - -
Fines - Parking 299,139 335,000 300,000
Fines - Child Passenger Protection 4,051 4,300 4,300
Fines - Environmental 19,633 16,000 16,000
Fines - Animal 277,986 290,000 20,000
Fines - Other (23,934) 4,200 4,200
Drunk-O-Meter 3,934 4,000 4,000
Total Fines 2,945,091 2,933,000 2,626,000
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2013 2014 2015
ACTUAL ADOPTED ADOPTED
CITY OF LITTLE ROCK
2015 OPERATING REVENUE
FEES
Rezoning Fees 52,861 50,000 50,000
Act 9 Admin Fees 2,500 4,000 4,510
Incident Report Fees 1,510 - -
Civil Court Fees 73,663 70,000 74,000
Booking & Admin Fee -Pulaski County Jail 30 - -
Community Service Fees 27,445 26,200 25,000
Miscellaneous Service Fees 105,627 101,675 101,700
Mobile Home Registration Fees 23,596 15,000 30,000
Animal Services 221 - 250,000
Total Fees 287,453 266,875 535,210
UTILITY FRANCHISE
Entergy 13,151,262 12,482,000 13,194,900
S W Bell 800,269 710,000 683,200
Local Landline Franchise Fees 262,062 222,500 240,700
Long Dist. Franchise Fees 918,586 917,500 730,000
Centerpoint Energy 3,382,754 3,323,000 3,800,000
Central Ark Water 3,211,977 3,460,000 3,345,300
LR Waste Water 4,671,529 5,043,300 4,992,500
Fiber Optics 1,404,692 1,400,000 1,591,800
Cable TV 1,904,571 1,884,800 1,925,600
Franchise Fee Contra (1,752,098) (1,757,100) (1,759,293)
Total Utility Franchises 27,955,604 27,686,000 28,744,707
INVESTMENT INCOME
Interest Income (58,336) 50,000 200,000
Total Investment Income (58,336) 50,000 200,000
RENTS AND ROYALTIES
Tower Lease 258,020 258,000 257,196
Ground Leases 6,031 6,600 6,030
Amusement Park Leases 3,300 3,300 3,300
Total Rents and Royalties 267,351 267,900 266,526
MISCELLANEOUS INCOME
Security Deposit Rental Reimbursement - - -
Other Reimbursement (3,125) - -
Contributions/Donations
269,019 250,000 250,000
Miscellaneous Revenue 471,325 250,000 250,300
Total Miscellaneous Revenue 737,219 500,000 500,300
Transfers In 5,411,301 1,780,892 7,994,672
Carryover from 2014 550,000
TOTAL GENERAL FUND REVENUE 185,532,008 184,264,530 194,740,211
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2013 2014 2015
ACTUAL ADOPTED ADOPTED
CITY OF LITTLE ROCK
2015 OPERATING REVENUE
STREET FUND
ST Homestead Tax 309,482 302,000 319,100
1/2 County Road Tax 4,938,010 5,171,400 5,170,200
State Gas Tax Turnback 10,542,380 12,100,000 12,672,900
Street Repair Reimbursement 13,355 10,000 14,700
Insurance Reimbursement 149,300 50,000 120,000
Interest On Investments (8,922) 5,000 38,600
Transfer In 1,639,026 1,725,296 1,714,726
TOTAL STREET FUND 17,582,631 19,363,696 20,050,226
FLEET INTERNAL SERVICE FUND
Fleet Labor 2,609,630 2,843,569 2,845,262
Fuel Fees 3,426,805 3,671,802 3,550,170
Compresssed Natural Gas - - 168,920
Miscellaneous Sales 8,290 8,000 32,998
Motor Pool 10,142 8,932 8,932
Fleet Parts 3,315,656 3,372,450 3,378,090
Insurance 924,471 790,998 766,000
Fleet Management 730,356 1,138,780 1,153,623
Fleet Sublets 1,564,302 1,310,000 1,441,081
Interest on Investments 1,573 - -
Capital Contribution 112,369
TOTAL FLEET INTERNAL SERVICE FUND 12,703,594 13,144,531 13,345,076
VEHICLE STORAGE FACILITY
Licenses and Permits 11,745 21,240 16,300
Storage Fees 326,472 330,000 363,500
Wrecker Fees 413,965 420,000 426,610
Vehicle Auction Sale 345,945 448,000 446,400
Impound Administration 95,377 100,000
100,000
Vehicle Storage Miscellaneous 169,157 29,600 29,600
TOTAL VEHICLE STORAGE FACILITY 1,362,661 1,348,840 1,382,410
WASTE DISPOSAL ENTERPRISE FUND
Sanitation Fees 16,055,563 15,910,000 16,016,000
Landfill Fees 1,934,579 1,300,000 1,250,000
Methane Gas Revenue 174,379 135,000 95,000
Yard Waste 124,738 100,000 75,000
Compost Sale 113,321 100,000 80,000
Interest On Investments (27,144) 8,000 50,000
Miscellaneous Revenue 185,591 10,000 11,000
TOTAL WASTE DISPOSAL ENTERPRISE FUND 18,561,027 17,563,000 17,577,000
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2013 2014 2015
ACTUAL ADOPTED ADOPTED
CITY OF LITTLE ROCK
2015 OPERATING REVENUE
PARKING GARAGES
Business License - Auto/Truck 267,378 270,000 273,600
Street Repair Reimbursement 153,039 180,000 244,500
Parking Meters 486,584 500,000 394,400
Surface Lot Parking 82,771 93,117 93,000
Parking Deck Monthly 908,711 870,000 881,000
Parking Deck Daily 172,157 248,500 253,800
Parking Peabody 67,382 60,000 48,200
Interest on Investments (1,302) 2,100 7,800
Miscellaneous Income - 450 450
TOTAL PARKING GARAGES 2,136,721 2,224,167 2,196,750
GRAND TOTAL ALL FUNDS 237,878,642$ 237,908,764$ 249,291,673$
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City of Little Rock, Arkansas 2015 Operating Budget
%
REVENUES CHANGE
2011 Operating Revenues 150.5
2012 Operating Revenues 180.2 19.73%
2013 Operating Revenues 185.5 2.94%
2014 Operating Revenues 184.3 -0.65%
2015 Operating Revenues 194.7 5.64%
REVENUE TRENDS
OVERALL
The City’s General Fund revenues are primarily comprised of sales and use taxes,
property taxes, utility franchise fees, fines and fees and revenues from various
licenses and permits. The largest source of revenue in the City’s General Fund is
sales and use tax, which contributes approximately 50% to the 2015 budget. The
2015 operating budget includes an increase in sales tax of only 0.25% over 2014
actual tax collections because of better than expected tax collections in December.
In September 2011, voters approved an overall one (1)-cent sales tax increase,
with 5/8-cent dedicated for ongoing operating expenses and 3/8-cent dedicated to
capital projects over a ten (10) year period. The 2014 sales tax grew at a rate of
1.33% over 2013 actuals. Growth in monthly sales tax receipts compared to the
same period a year ago continued to be volatile throughout the year without any
definitive trends. Sales tax revenue for March, May and December sales grew at
a rate of over 6% in comparison to the same periods a year ago, while revenues
for January and April sales were more than 5% below the same period a year ago.
Consumer confidence appears to be on the rise, but sales taxes generated by retail
sales have remained relatively flat. The impact of increasing internet sales and
rebates of local sales tax on business, governmental, and non-profit purchases in
excess of $2,500 have stifled local tax growth. State statute restricts the level of
tax information available to municipalities which makes revenue forecasting very
difficult.
The 2015 budget includes the revenue and expense associated with separate
property tax millages and state turnback funds for the closed Police and Fire
Pension and Relief Funds. The revenue is passed through the General Fund and
contributed directly to the Police and Fire Pension Funds. In prior years, this
revenue has been reflected as a year-end adjustment and has not been included
in the annual budget. In 2015, the dedicated revenue of approximately $11.2
million is included in the General Fund budget. The projected change in operating
revenues is approximately 5.6% over the original 2014 operating budget and 2.6%
above the final amended 2014 budget.
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City of Little Rock, Arkansas 2015 Operating Budget
Property taxes comprise approximately 14% of 2015 General Fund budgeted
revenues. Assessments of real estate and personal property are levied in the
current year and collectible in the following year. Little Rock is in Pulaski County
which completed a real estate reappraisal in 2012. Historically, the reappraisal is
on a three (3) year cycle, however; the Arkansas State Assessment Coordination
Department altered the reappraisal to a five (5) year cycle with the next appraisal
scheduled to occur in 2017. Personal property is reappraised annually by May 31.
The original charge for 2014 property taxes to be collected in 2015 reflects a 3.43%
increase over 2014.
Utility franchise fees comprise approximately 14.8% of 2015 General Fund
budgeted revenues. 2014 utility franchise revenues were 0.66% above 2013.
Overall, 2015 utility franchise fees are projected to be 2.14% higher than 2014
actual revenues and 1.67% over the final amended 2014 budget. Weather plays
a significant role in the majority of the annual franchise fee revenues. The largest
percentage changes experienced in 2014 were associated with Fiber Optics, Local
Landline and Long Distance. Windstream and AT&T U–Verse contribute to Fiber
Optics revenues. Fiber Optics continues to be an increasing franchise fee with
increased revenue of 20.38% over prior year revenues. The trend towards
households with only wireless phones gains in popularity. Local landline and long
distance franchise fee revenues experienced double digit declines of over 12%
and 13%, respectively. Telecommunication revenues are expected to further
decrease as wireless communication continues to increase market share. The
largest dollar changes experienced in 2014 were associated with Entergy (electric
utility), CenterPoint Energy (gas utility), Wastewater, and Fiber Optics.
Temperatures never exceeded 100 degrees in 2014. Entergy usage declined by
0.58% and revenues decreased 3.43% or approximately $450,000 from 2013. The
decline in revenue was primarily associated with a reduction in rates due to the
expiration of the Federal Energy Regulatory Commission (FERC) rider associated
with the utility’s exit from a multi-state agreement in which it had operated for
decades to equalize rates among member states. The relatively harsh winter of
2013/2014 and an increase in gas rates resulted in a significant increase in natural
gas franchise fee revenues from 2014 levels. CenterPoint usage levels increased
6.23% with an increase to revenues of 10.56% and over $350,000. Wastewater
revenues increased $300,000 due to a 7% rate increase in 2014. Wastewater
Utility has no plans for a rate increase in 2015. Wastewater revenues are projected
to be in line with 2014 revenues. Central Arkansas Water and the Wastewater
utility have experienced significant reductions in water usage due to efficiencies in
technology, conservation efforts, and significant rainfall in the spring and summer.
Of the City’s utility providers, only Entergy is anticipated to have a rate increase in
2015. Entergy Arkansas has announced a 3.4% increase in rates to address a
recalculation of a payment that it made to its sister company. The recalculation
resulted from a $67.8 million shortfall that the new rate increase will address.
Licenses and permits comprise approximately 5.7% of 2015 General Fund
revenues. 2014 revenues from licenses and permits increased 4.8% over 2013
and are expected to remain flat in 2015. Business licenses and mixed drink
supplemental fees grew slightly at approximately 1%, but the majority of the
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City of Little Rock, Arkansas 2015 Operating Budget
increase for 2014 is associated with building and related permits. Building and
related permits increased approximately 20% or over $411,000 due to an increase
in commercial construction. Fines and fee revenues decreased approximately
7.9% compared to one year ago primarily from a decline of 10.5% in traffic fines
and a decline of 7.0% in parking fines. Some of the decline in parking fines was
associated with the closure of metered spaces due to the commercial construction
projects in the downtown area.
PROPERTY TAXES
In general, all real and personal property situated in the City is subjected to ad
valorem taxation with some exceptions, such as school property and libraries.
Residents, utilities, and businesses in Little Rock are assessed and levied property
taxes as follows:
Assessed value is an amount equal to twenty (20) percent of market value,
and the levied millage is applied against the assessed value to determine
the tax owed. With the passage of Amendment 79, the appraised value of
residential property is limited to a maximum increase of 5% annually,
regardless of the increase in market value of the property. A non-residential
property or an investment property is limited to an annual increase of 10%.
Any annual increase in the value of utility and carrier real property is limited
to 10% of the assessed value for the previous year.
Tax levies, expressed in terms of millage are passed by local governments
and certified to the County Tax Collector, who bills and collects the tax. One
mill equals $1 in tax per $1,000 in assessed value.
A Little Rock resident living in the Little Rock School District is charged a
millage rate of 70.10.
Taxes are remitted to the City monthly by the Pulaski County Treasurer as
payments are received throughout the year.
The City tax levies the past two years were as follows:
2013 Payable 2014 2014 Payable 2015
General Operation 5.00 5.00
Bond Retirement 3.00 3.00
Library System 5.20 5.20
Police & Firemen’s Pension 2.00 2.00
15.20 15.20
The General Assembly exercised its homestead exemption authority with the
passage of Act 1598 of 2001 (Amendment 79). A homestead is a property which
is an owner’s principal place of residence. Effective with the assessment year
2000 and thereafter, the amount of real property taxes assessed on the homestead
of each property owner is reduced by $350.
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City of Little Rock, Arkansas 2015 Operating Budget
The City recently received notice of the original charge for 2014 property taxes to
be collected in 2015 which reflects an overall increase of 3.43%. The original
charge for the previous year increased 2.43%. The Pulaski County Treasurer’s
Office is experiencing a collection rate of approximately 96%, which includes
collection of delinquent taxes from previous years.
The dedicated one mill property tax levies for the Police and Fire Pension plans
are included in the General Fund budget. The revenue is collected in the General
Fund and is contributed directly to the Police and Fire Pension Funds. Prior to
2013, this “pass-through” revenue was not included in the annual budget, but was
included in actual revenues as a year-end adjustment. The dedicated pension
property tax millage is expected to generate approximately $7,484,100 in
revenues.
In addition, the City receives approximately one-half of the collections from a 2.90
mill road tax levied by the County and restricted to use for street repair and
maintenance. The 2015 budget anticipates $5.49 million in property tax collections
from this tax.
In addition to the City millage of 15.20 and the County road millage of 2.90, a Little
Rock property owner’s tax assessment for 2014 includes 5.60 mills levied by the
County and 46.40 mills levied for the Little Rock School District. The total millage
for a Little Rock property owner is 70.10 for 2014 property taxes payable in 2015.
The general operations 5.0 mill levy is the maximum rate allowable under state law
for general city operations. Property tax revenues include Act 9 Payments which
are payments in lieu of property taxes paid by certain industrial companies.
Dillards, LM Wind Power Blades, Inc., Novus, Ringwood Container, Sage V Foods,
AR Aerospace, Welspun Pipes, Inc., Jacuzzi and Windstream are companies
which are scheduled to make Act 9 payments in 2015.
COUNTY SALES TAX
The City receives a pro-rata share of a one (1) cent countywide sales tax.
Distribution is based on the Little Rock population as a percentage of Pulaski
County’s total population. According to the 2010 Census, Little Rock experienced
a 5.0% growth in population from the 2000 Census. The City comprises
approximately 50.56% of the County population and therefore receives this
percentage of the County sales and use tax. The projected revenue for 2015 from
this tax is $40,045,900, which represents a 1.50% increase over the anticipated
2014 year-end results at the time the budget was adopted and only a 0.29%
increase over 2014 actual sales tax receipts.
Use taxes, paid mostly by businesses, resemble sales taxes. They apply to goods
purchased from out-of-state merchants such as catalog vendors. Use taxes
included in the projection are approximately $3,629,000 annually. On January 1,
2008, changes to Arkansas’s state and local sales tax laws were implemented for
purposes of compliance with the Streamlined Sales Tax Agreement. Including
Arkansas, the sales tax laws of twenty-four (24) states have been amended to
conform to the agreement.
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City of Little Rock, Arkansas 2015 Operating Budget
LOCAL SALES TAX
Prior to 2012, the City of Little Rock levied one of the lowest sales tax rates in the
State of Arkansas at 0.5%. In September 2011, voters approved an overall one
(1) cent sales tax increase which is comprised of a permanent 5/8-cent dedicated
for ongoing operations and a temporary 3/8-cent dedicated to capital projects over
a ten (10) year period. The new tax went into effect on January 1, 2012. The
existing 1/2-cent sales tax generated $23,687,072. The new 5/8-cent tax
dedicated to ongoing operations generated an additional $29,608,840 in revenue
in 2014 for a combined $53,295,912 in local sales tax for operations.
The 3/8-cent tax for capital projects generated $17,849,353 in 2014 and is
expected to generate $195.8 million over the ten (10) year period for capital
projects. The capital tax increased 1.57% over 2014 levels. The 3/8-cent tax
revenue is not reflected in General Fund revenues. Instead, it is reported in a
separate capital projects fund.
There is a two-month delay from the time the actual sales tax revenues are
collected by businesses and the time they are received by the City. Sales tax is
remitted by businesses to the State, which disburses this amount to the City, less
a 3% administrative charge. Prior to January 2014, local governments had limited
information regarding sales tax receipts which made forecasting these revenues
very difficult. As a result of concerted efforts by the Municipal League and
sponsoring cities, the Arkansas Department of Finance and Administration now
issues a statistical report which classifies and summarizes tax collection and
adjustment information for businesses, reporting activity for the specific city or
county by NAICS code. Over time, the reports are expected to better assist in
sales tax forecasting. The report includes components that comprise negative
adjustments, such as refunds, rebates and corrections.
The local sales tax of 1.5% grew at a slightly higher rate of 1.33% than the county’s
sales tax growth rate of 1.29%. The projected revenue for 2015 from the local tax
for the General Fund is approximately $53,896,600 which represents a 1.5%
increase from anticipated 2014 year-end results at the time the budget was
adopted, and 1.13% over actual 2014 receipts.
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City of Little Rock, Arkansas 2015 Operating Budget
STATE TAX TURNBACK
The State General Assembly, through the Office of Budget, appropriates and then
distributes an amount for turnback to municipalities each July 1
st
, based on
population. The General Fund turnback for 2015 was reduced from $16.00 to
$14.90 per capita, or a 6.875% decrease. The Arkansas State Legislature
appropriated monies to be disbursed to county and local governments from the
surplus of the Property Tax Relief Fund. Historically, Little Rock has received
approximately $411,000 from this appropriation. A reduced surplus in the fund will
result in a reduced appropriation to Little Rock of $205,622. The 2015 legislature
will have an option to appropriate the remaining $205,622 during its session. State
turnback funds are expected to generate approximately $2.74 million dollars in
General Fund revenue in 2015.
Month 2013 2014 2013 2014 2013 2014
January $6,083,989 $9,666,249 $567,572 $594,574 $5,890,046 $3,671,283
February 6,402,534 8,610,433 728,037 908,314 1,897,309 1,889,235
March 5,816,498 8,864,931 742,998 838,838 1,889,913 1,889,914
April 6,019,069 9,090,103 646,154 1,005,050 1,890,084 1,889,914
May 6,643,763 9,684,676 589,734 1,108,430 1,884,772 1,889,593
June 6,880,560 9,380,094 671,509 1,151,947 1,889,911 1,889,914
July 6,750,810 10,386,237 803,621 1,049,503 5,424,973 7,436,193
August 7,684,016 9,310,017 865,190 1,153,167 2,586,804 2,056,571
September 9,473,120 9,483,760 817,319 1,084,170 1,889,910
2,052,581
October 9,422,856 9,763,094 742,984 1,042,826 1,889,910 2,056,449
November 8,234,597 9,282,963 686,467 923,264 1,889,429 2,056,540
December 8,433,441 9,054,076 685,869 755,209 1,889,910 2,054,946
Total $87,845,255 $112,576,632 $8,547,455 $11,615,292 $30,434,803 $30,833,131
* Includes $4 million appropriation from the Property Tax Relief Fund
** Includes $3,516,786.65 supplemental in July 2012 and $3,516,799.83 in July 2013
State Turnback
State Turnback Year-to-Date 2014 with 2013 Comparison (shaded blue)
Street Severance General
Month 2014 2013 2014 2013 2014 2013 2014 2013
January $44,899,051 $43,764,256 $41,135,484 $39,379,372 $86,034,535 $83,143,628 $4,805 $12,329
February 51,556,660 51,585,273 46,326,186 44,215,215 97,882,846 95,800,488 5,765 26,338
March 41,142,676 42,875,487 37,596,230 38,040,827 78,738,906 80,916,314 5,571 8,508
April 44,819,678 44,204,032 41,824,879 39,707,294 86,644,557 83,911,326 6,185 24,953
May 48,373,032 47,315,206 43,431,803 42,055,467 91,804,835 89,370,673 6,011 5,611
June 45,121,494 46,455,658 40,770,568 41,846,373 85,892,061 88,302,031 7,080 27,062
July 50,985,699 47,227,642 45,660,838 42,580,665 96,646,537 89,808,307 7,291 7,773
August 48,591,520 47,615,222 44,364,160 43,352,547 92,955,680 90,967,768
7,038 25,210
S
eptember 48,279,490 45,850,267 43,224,258 43,479,764 91,503,748 89,330,031 9,120 9,433
October 50,649,942 46,540,715 45,482,360 44,208,889 96,132,302 90,749,603 8,604 26,911
November 48,903,456 45,245,392 44,043,654 42,367,542 92,947,110 87,612,934 19,648 8,718
December 49,348,276 45,359,946 44,623,076 41,645,364 93,971,352 87,005,310 14,221 29,399
Total $572,670,974 $554,039,096 $518,483,496 $502,879,319 $1,091,154,469 $1,056,918,413 $101,339 $212,245
Averages $47,722,581 $46,169,925 $43,206,958 $41,906,610 $90,929,539 $88,076,534 $8,445 $17,687
Municipal Sles and Use Tax has an effect on local sles tax revenues and is one of the factors that affect local sales tax based on where
the purchaser takes receipt or delivery of the product or service.
Source: Debbie Rogers, Office of State Treasurer
Interes t
Local Option Sales and Use Tax in Arkansas
Sale and Use Tax Year-to-Date 2014 with 2013 Comparison (shaded blue)
Municipal Tax County Tax Total Tax
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City of Little Rock, Arkansas 2015 Operating Budget
INTEREST EARNINGS
Interest earned on the investments and bank deposits of the General Fund, certain
bond retirement funds, special projects and capital funds can legally be utilized for
any municipal purpose. The Federal Funds rate has decreased to a target range
of between 0.00% and 0.25% and has remained at historically low levels since
January 1, 2009. The Discount Rate currently remains at 0.75%. Larger fund
balances increased investment income approximately $140,000 in 2014.
Investment income before year-end fair market value adjustments was
approximately $218,000.
Securities held are short in duration, backed by the U.S. government and are
among the safest securities in the world. Short term rates remained steady
throughout 2014 but are forecasted to increase mid-year 2015. In November 2014,
the Fed announced that it was ending a two year stimulus program (Quantitative
Easing or QE3) designed to keep interest rates low and boost the economy.
Slightly higher interest rates coupled with steady fund balances should increase
investment earnings slightly in 2015. The City’s bank deposits are expected to yield
a favorable 0.45% in 2015.
UTILITY FRANCHISES
Utility franchise fees are charged to public utilities for the privilege of using the
City’s streets and rights-of-way. The public utilities paying franchise fees are listed
below with the annual rate, which is typically based on the gross revenues of the
utility:
Entergy 5.20% of gross revenue collection for the
current calendar year or $8.8 million,
which-ever is greater
CenterPoint Energy 5.20% of gross revenue for the current
calendar year or $2.1 million, whichever is
greater
AT&T (Local Land Lines) 7.32% of local exchange access line
charges for the previous calendar year
All Other Local Land Lines 7.32% of local exchange access line
charges for the previous calendar year
Comcast Cable 5.00% of gross revenues
Central Arkansas Water 10.00% of gross revenues from water
sales to customers within the City plus
0.1545 times 20% of the book value of the
Water Works system inside the City limits
WasteWater Utility 10.00% of gross revenues
Fiber Optics 5.00% of gross revenues
Long Distance Franchise $0.004 per minute of toll calls
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Overall franchise fee revenues in 2014 were 0.66% higher than 2013 levels.
CenterPoint Energy, the gas utility, experienced significant revenue increases
totaling over $350,000 (10.6%) due to the harsh winter of 2013/2014. The relative
cold and wet winter increased usage levels by 6.23%. The winter of 2014/2015 is
forecasted to be one of the coldest and wettest on record. Natural gas prices
remain historically low.
CenterPoint accumulates and stores natural gas for the next heating season. The
cost of natural gas makes up between 70% and 80% of the typical bill. CenterPoint
reports its natural gas costs to the Arkansas Public Service Commission at the end
of October each year. Those rates are passed along to customers with no profit
going to the utility. CenterPoint announced a 6.9% rate increase in the gas rate
beginning in the summer of 2014. Natural gas reserves are at an eleven (11) year
low, the result of a long winter and cold spring of 2014. Certain franchise fee
revenues, such as Entergy, CenterPoint, and Central Arkansas Water are directly
impacted by the weather.
A reduction in rates with the expiration of the FERC rider and an unseasonably
mild 2014 summer, with no recorded days over 100 degrees, resulted in a
decrease in Entergy franchise revenues of 3.43% and over $450,000 while usage
was slightly down by 0.58%. On January 13, 2015, the Arkansas Public Service
Commission approved a 3.4% increase resulting from a recalculation in rates to
address an earlier $67.8 million shortfall. The recalculated adjustment will affect
all monthly bills in 2015. The 2015 budgeted amount for Entergy is 3.90% higher
than 2014 levels due to the stated rate increase and an expected warmer summer.
In October 2014, Central Arkansas Water (CAW) announced proposed rate
increases for wholesale customers who sell to private utilities for the years 2016
and 2017. There are no plans for a rate increase in 2015. A very mild 2014
summer and ample rainfall decreased water consumption considerably, along with
efficiencies in water conservation efforts. These factors led to a decline in water
revenues of approximately $45,000 or 1.4% from 2013 levels. An on-going national
trend is that water consumption continues to decrease due to water saving
appliances and conservation measures.
Little Rock Wastewater revenues increased 6.52% over the previous year. The
majority of the increase was attributed to a 7% increase in the sewer rate. There
is no announced rate increase for 2015, however, Little Rock Wastewater is
expected to issue debt in 2015 to pay for expansion of storage facilities and a pump
station upgrade. There are scheduled rate increases for 2016, 2018 and 2019.
Scheduled rate increases were implemented to comply with the terms of the Sierra
Club lawsuit to reduce sanitary sewer overflows in Little Rock.
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City of Little Rock, Arkansas 2015 Operating Budget
Franchise fee revenues from local land line companies continue to decline from a
peak in 1998. This trend is expected to continue in the foreseeable future, with
more customers migrating from utilization of a home phone (land line) and a mobile
phone to only a mobile phone. Revenue from local land line providers declined
12.6% in 2014 and are expected to further decrease in 2015. The decline could
be sharper but many alarm users still maintain a land line to operate their system.
The downward trend in traditional franchise fee revenues from long distance
providers is a result of an increase in wireless or mobile phone usage for long
distance calls. The franchise fee revenue from long distance decreased 13.8% in
2014. A one-time upward adjustment in 2013 skewed the decline in 2014. Long
distance revenue is projected to further decline 3% to 5% in 2015.
Fiber optic companies, such as AT&T U-Verse and Windstream, are now in direct
competition with Comcast Cable, which has historically been one of the City’s
leading growth franchise customers. Overall, fiber optics and cable franchise
revenues increased 7.63% in 2014. Windstream revenues for 2014 were only
slightly lower than 2013, while AT&T U-Verse franchise fees increased by 28.5%
and Comcast Cable declined 1.78%. Fiber optic companies rarely announce
anticipated rate increases in advance of the actual rate change. Cell phone, alarm
system revenues and Internet usage are not included in the franchise agreement.
Fiber optic forecasted revenues should remain steady for 2015.
Franchise fee revenues for fiscal year 2015 are forecasted to be 2.14% above
2014 receipts and 1.67% higher than the amended 2014 budget. Utilities may
adjust rates during the course of the year which affects revenues. In addition,
severe weather or unusual weather patterns may impact franchise revenues.
$6,400,000
$12,800,000
$19,200,000
$25,600,000
$32,000,000
Budget Budget Budget
Actual Adopted Adopted
2013 2014 2015
Utility Franchise
Utility Franchise
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City of Little Rock, Arkansas 2015 Operating Budget
BUSINESS LICENSES
Business licenses are required annually for every business operating within the
City limits. License fees are billed, collected, and administered by the City’s
Treasury Management Division. Business licenses continue to be a stable
revenue source with 2014 license fees increasing 1% to over $6.37 million. The
increase of approximately $65,700 for 2014 is attributed to a steady local economy
and aggressive collection of delinquent accounts. 2015 revenues are expected to
remain at 2014 levels with no scheduled rate increases. A business license
committee will review the fairness and equity of the business license fee structure
periodically and provide recommendations to the Board of Directors.
MIXED DRINK PERMITS AND SUPPLEMENTAL TAX
Hotels, restaurants, and bars are required to have a permit in order to sell alcoholic
beverages for on-premises consumption. In addition, a 10% supplemental tax is
levied on public liquor sales and a 5% tax is levied on sales by private clubs within
the City. 2014 mixed drink revenue was 1.4% above 2013. The City enjoys a
strong working relationship with the State of Arkansas Alcohol Beverage Control
Agency to ensure that every business in Little Rock with a state alcohol permit is
also registered with the Treasury Management Office. The 2015 budget
anticipates an increase of approximately 3% over the 2014 amended budget.
BUILDING AND RELATED PERMITS
Building and related permits, which include electrical permits, plumbing permits,
and heating ventilation and air conditioning (hvac) permits, were approximately
20% above 2013 and approximately 30% over the 2014 original budget. The
increase was primarily due to large one-time commercial construction projects
such as the Gateway Mall, next to the Bass Pro Shop in Southwest Little Rock. All
sectors of the city experienced increases in building activity in 2014. 2015 building
permits are expected to drop from the elevated 2014 levels but are expected to be
above 2013 levels. The City’s Planning & Development Department projects
construction to remain stagnant for residential permits. Continued favorable
interest rates should continue to spur commercial construction activity in Little
Rock.
SW Bel (AT&T) 0.00%
Entergy 3.40%
Long Distance 0.00%
Local Land Lines 0.00%
CenterPoint 0.00%
Central AR Water 0.00%
Fiber Optics 0.00%
Waste Water Utility 0.00%
Announced Utility Rate Increases for 2015
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City of Little Rock, Arkansas 2015 Operating Budget
FINES
Fines and related fees comprise 1.63% of the 2015 budget. 2014 fines and fees
were approximately $255,300 or 7.9% below the previous year. Traffic and parking
fine revenues were the main contributors to the decrease. Traffic fine revenues
decreased 10.5% while parking fine revenues decreased 7.0% from one year ago.
Parking fine revenue continues to suffer from construction along South Main which
has caused temporary closure of metered spaces. Both traffic and parking fines
are expected to increase in 2015 as additional Police officers funded by the new
5/8 cent sales tax are deployed and temporarily closed parking meters are
reopened.
PARK & ZOO REVENUE
General Fund park revenues are generated by three (3) golf courses, tennis fees,
community center fees, athletics fees, summer programs and pavilion rentals.
Prior to 2013, the Zoo, Jim Dailey Fitness & Aquatic Center, and the municipal golf
courses (Rebsamen, Hindman and War Memorial) were operated as separate
enterprise funds. At the end of 2012, these activities were consolidated into the
General Fund. The 2015 General Fund parks and Zoo budget includes an
increase of 9.61% or $676,000 from 2014 actuals. The majority of the increase for
2015 can be attributed to the anticipated increase in Zoo admissions and
concessions. Green fee revenues from the three golf courses are also forecasted
to increase. The Jim Dailey Fitness & Aquatic Center suffered a fire in 2014 which
resulted in a decline in revenues.
Excluding transfers in and donations, Zoo revenues increased approximately 7.5%
or $267,193 from one year ago. However; the revenues were 5.7% below the
original 2014 budget, which included a rate increase. Similar to park revenues, Zoo
revenues are heavily dependent on weather conditions. There were similar
weather patterns in 2013 and 2014 where the spring was unseasonably cold
followed by a very wet
summer. 2014 Zoo
annual memberships
increased 18.21%,
Zoo admissions
increased 11.50% and
Zoo concessions
increased 7.29%. Zoo
admissions account for
approximately
$409,000 of the
increase to parks &
Zoo revenue. In 2014, the Zoo purchased a new train and renovated the train
tracks. Overall, 2015 Zoo revenues are projected to be approximately 12% higher
than 2014 actual revenues. Zoo rate adjustments in 2015 include 95ȼ increases
in fees for adult and child admission, and an increase of $4 in annual membership
fees. In addition, parking fees will increase from $2 to $3 per vehicle. No change
in group rates is anticipated.
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City of Little Rock, Arkansas 2015 Operating Budget
The City operates three (3) public golf courses and relies heavily on greens fees
and concession revenues to operate these courses. Historically, March is the start
of the busy season for golf courses. Similar to Zoo revenues, the cold spring
months coupled with the wet summer months reduced the number of patrons on
each course in 2014, with the exception of Hindman. Excluding the debt service
contribution, overall
golf revenues were
5.6% above 2013
levels. 2014
Rebsamen Golf
revenues decreased
approximately 3%.
War Memorial
revenues decreased
13.72% from one
year ago and
Hindman Golf
Course increased
almost 85%. The sharp increase in Hindman revenues were the result of a full
year of operations at the course. In 2013, Hindman Golf Course was temporary
closed for the purpose of resurfacing all eighteen holes, including the practice
putting greens, and for renovations to the pro shop. The improvements and new
renovations at Hindman increased revenues 2.68% from 2013 levels. All three
golf courses are projected to maintain consistent revenues for 2015.
AIRPORT REIMBURSEMENT
The Little Rock National Airport reimburses the City for expenses related to police
and fire protection. In 2014, airport police reimbursements decreased 1.7% to
$1.876 million and airport fire reimbursements increased 3% to $1.276 million.
Staffing levels and 2015 airport reimbursements should be consistent with 2014.
STREET GAS TAX TURNBACK
The City receives state turnback funds directed to the Street Department. The gas
tax turnback is allocated based on the latest census and gallons of fuel consumed.
Basically, 15% of the tax on gasoline consumption goes toward municipal aid or
gas turnback. The passage of Constitutional Amendment No. 1 in the general
election of 2012 provided additional funding for State, County and City streets and
bridges with a temporary one-half percent (0.5%) sales and use tax for road
construction and maintenance. The ten (10)-year sales tax is effective from July 1,
2013 through December 2022. 2014 revenues were 21.65% higher than 2013,
which is attributed to a full year of the new tax. Gas turnback funds have been
trending downward as a result of lower gas consumption associated with more fuel
efficient automobiles. The State Highway Department’s turnback projection for
2015, including gas tax, severance tax and sales tax is $12.67 million. The 2015
Street Fund turnback appropriation increased from $65.00 to $65.10 per capita, a
0.15% increase. The 2015 street turnback estimate includes proceeds from the
$0
$250,000
$500,000
$750,000
$1,000,000
Budget Budget Budget
Actual Adopted Adopted
2013 2014 2015
Golf Department
Green Fees
Equipment
Rental
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City of Little Rock, Arkansas 2015 Operating Budget
new highway 1/2-cent sales tax and severance tax on natural-gas. Currently,
approximately 7% of the turnback is attributed to the natural gas severance tax.
BOND & INTEREST FUND
Revenues from this fund were utilized to finance the debt service on the
$70,635,000 Limited Tax Bond Issue, Series 2004. In November 2003, voters
approved the continuance of a 3.3 annual property tax millage for debt service on
the bonds. The bonds were fully redeemed on April 1, 2013. The voters of Little
Rock approved a new annual ad valorem tax at a lesser rate of 3.0 mills at a special
election on September 11, 2012. The reduced millage replaces the previous 3.3
mill tax and is pledged for the financing of $105 million in street and drainage
improvements. On July 15, 2013, the City issued $58,105,000 of general obligation
debt ($42,000,000 for street improvements and $18,000,000 for drainage
improvements). The millage, along with the Homestead Credit, which is monies
generated from a state-wide half-cent sales tax, produced approximately $11
million toward 2014 debt service on the outstanding bonds.
WASTE DISPOSAL
The 2014 Waste Disposal charges for services revenues decreased 4.8%
compared to 2013. Landfill fees decreased almost 37% from 2013 levels. In 2013,
Waste Disposal had an exclusive one year agreement with Waste Management
and Waste Corporation for dumping fees. Revenues from methane gas dropped
26%, the result of an exclusive vendor experiencing equipment issues.
The monthly residential rate for sanitation pickup remained at $22.02. There are
approximately 58,000 households currently receiving garbage collection services.
No rate increases are scheduled for 2015. In addition, approximately 280
commercial vendors pay an average rate of $33.37 a month for waste disposal
services. The 2015 budget for sanitation fees of over $16 million is slightly lower
than 2014 actuals because it contains no anticipated delinquent collections.
Landfill fees are expected to generate approximately $1,250,000 in 2015 which is
$3,750,000
$5,750,000
$7,750,000
$9,750,000
$11,750,000
$13,750,000
Budget Budget Budget
Actual Adopted Adopted
2013 2014 2015
Street Fund
1/2 County
Road Tax
Gas Turnback
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City of Little Rock, Arkansas 2015 Operating Budget
an increase of 2.47%. Methane gas captured by the landfill is piped to a single
vendor and is expected to generate $95,000 in annual revenues.
VEHICLE STORAGE
Vehicle Storage revenues are generated from storage fees, wrecker fees, and
auction sales. These revenue sources contributed approximately 87% of total
2014 revenues which was a decrease of 10.2% from one year ago. Overall Vehicle
Storage revenues increased 1.0%. 2013 had some one-time reimbursements that
skewed revenues up for that year. The largest increase in 2014 was associated
with vehicle auctions which increased over $104,000 from one year ago, primarily
from an increase in available vehicles. The 2015 overall revenue budget remains
flat compared to 2014 actuals. There were 3,138 tows to the Little Rock Vehicle
Storage facility in 2014 compared to 3,257 in 2013. The average sales price per
vehicle auctioned in 2014 was $561.67.
$0
$4,000,000
$8,000,000
$12,000,000
$16,000,000
$20,000,000
Budget Budget Budget
Actual Adopted Adopted
2013 2014 2015
Waste Fund
Sanitation
Fees
Landfill
Fees
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City of Little Rock, Arkansas 2015 Operating Budget
PARKING GARAGE FUND
The City of Little Rock operates two downtown parking garages. Garage revenues
are generated by daily and monthly parking fees at the Second and Main Street
Parking Facility and the RiverMarket Parking Garage. In addition to garage fees,
annual business license fees received from the rental and/or leasing of
automobiles and trucks, parking meter revenues, and street repair fees collected
from utility companies are pledged to debt service on the bonds issued to construct
the parking garages. Overall parking garage revenues were less than 1.00%
higher in 2014 than 2013. Monthly revenues from the Statehouse and the
RiverMarket Garages were 3.88% lower in 2014 but slightly above budget. Daily
revenues from both garages increased 29.10% with the majority of that increase
attributed to the RiverMarket Garage which has experienced increased parking
due to the growing popularity of the RiverMarket district and an overall reduction
in available parking spaces downtown.
Street cut revenues increased approximately $48,600 with the majority of this
increase coming from CenterPoint repairs and maintenance in the city’s right-of-
way. Overall parking Garage Fund revenues are expected to increase
approximately 2% compared to one year ago.
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General Fund Revenues
Sources and Trends
2010-2015
Revenues increased significantly with the implementation of a new
sales tax in 2012. The 5/8-cent portion of the tax for on-going
operations increased the existing 1/2-cent tax to a total of 1.125%.
Note: 2011 and 2012 Actual revenues have been adjusted to reflect
the consolidation of the River Market, Golf, Jim Dailey Fitness &
Aquatic Center, and Zoo Funds with the General Fund.
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Expenditures
CITY OF LITTLE ROCK
2015 BUDGET SUMMARY
ALL FUNDS EXPENSES
$248,768,085
Street
Fund
8.06%
Fleet
Services
5.34%
Waste
Disposal
6.88%
General
Fund
78.28%
Vehicle Storage
Facility
.55%
Parking
Garages
.88%
109
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2013 2014 2014 2015 14/15 %
GENERAL FUND ACTUAL ADOPTED AMENDED* ADOPTED DIFF CHANGE
General Administrative $24,518,576 $20,296,290 $25,661,788 $28,062,042 $2,400,254 9.35%
Board of Directors 276,766 338,527 338,527 342,027 3,500 1.03%
Community Programs 372,737 388,081 490,370 423,578 (66,792) -13.62%
City Attorney 1,565,809 1,769,774 1,692,254 1,836,901 144,647 8.55%
District Court First Division 1,179,375 1,392,505 1,375,750 1,405,790 30,040 2.18%
District Court Second Division 1,186,390 1,247,286 1,247,286 1,248,245 959 0.08%
District Court Third Division 583,991 627,185 621,029 626,782 5,753 0.93%
Finance 2,900,097 3,136,992 3,088,125 3,204,124 115,999 3.76%
Human Resources 1,519,584 1,632,677 1,677,692 1,673,177 (4,515) -0.27%
Information Technology 3,788,479 4,358,322 4,183,585 4,679,784 496,199 11.86%
Planning Development 2,052,072 2,583,968 2,250,412 2,564,192 313,780 13.94%
Housing & Neighborhood Programs 5,129,094 5,673,839 4,710,980 5,790,389 1,079,409 22.91%
Public Works 974,942 1,166,482 1,050,592 1,159,922 109,330 10.41%
Parks & Recreation 8,575,043 9,739,691 9,231,574 9,958,932 727,358 7.88%
River Market 1,188,197 1,208,675 1,208,675 1,209,164 489 0.04%
Golf 2,386,862 2,187,165 2,187,165 2,308,904 121,739 5.57%
Jim Dailey Fitness and Aquatic Center 847,286 896,565 897,168 901,127 3,959 0.44%
Zoo 6,056,684 6,488,801 6,143,673
6,733,727 590,054 9.60%
Fire 43,859,037 45,774,586 45,497,791 46,232,253 734,462 1.61%
Police 63,934,472 67,200,859 65,487,491 68,885,072 3,397,581 5.19%
Vacancy Savings (5,000,000) (6,000,000)
(6,000,000)
Sub-total General Operating 172,895,492 173,108,270 179,041,927 183,246,132 4,204,205 2.35%
TRANSFERS OUT/OTHER EXPENSES
Transfer out to Street Fund 1,282,000 1,082,000 1,282,000 1,082,000 (200,000) -15.60%
Special Projects/PIT 10,130,538 9,074,260 9,542,603 9,412,079 (130,524) -1.37%
Contingency/Reserve 1,000,000 1,000,000 1,000,000
Sub-total of Transfers Out 11,412,538 11,156,260 10,824,603 11,494,079 669,476 6.18%
TOTAL GENERAL FUND 184,308,030 184,264,530 189,866,530 194,740,211 4,873,681 2.57%
OTHER FUNDS
Public Works - Street 15,336,023 19,363,696 19,363,696 20,050,226 686,530 3.55%
Fleet Services 12,683,067 13,135,688 13,259,688 13,294,275 34,587 0.26%
Vehicle Storage Facility 1,333,661 1,321,150 1,321,150 1,359,144 37,994 2.88%
Waste Disposal 16,617,509 17,655,926 17,655,926 17,127,479 (528,447) -2.99%
Parking Garages 2,104,780 2,224,167 2,224,167 2,196,750 (27,417) -1.23%
Sub-total Other Operating Funds 48,075,040 53,700,627 53,824,627 54,027,874 203,247 0.38%
TOTAL ALL FUNDS 232,383,070$ 237,965,157$ 243,691,157$ 248,768,085$ 5,076,928$ 2.08%
* The 2014 Amended Budget includes a reduction in departmental budgets for vacancy savings achieved throughout the year.
Vacancy savings represents savings from authorized but unfilled positions. The 2014 vacancy savings goal was fully realized.
CITY OF LITTLE ROCK
2015 OPERATING & OTHER BUDGETED EXPENDITURES
110
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$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
2013 2014 2015
Police Fire
All Others General Administration
Transfers Parks & Recreation
General Government
Summary of Appropriations
2013-2015
111
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2013 2014 2015
CATEGORY Actual Budget Budget
Salaries Wages and Employee Benefits $133,090,473 $137,290,586 $139,939,883
Supplies and Materials 6,188,960 6,403,155 6,338,170
Repairs and Maintenance 6,485,281 6,796,658 7,093,723
Contractual 20,887,311 20,914,528 21,789,639
Capital Outlay 380,000 370,000
Debt Service 5,993,200 1,323,343 7,714,717
Transfers 11,662,806 11,156,260 11,494,079
Net City Expenditures $184,308,030 $184,264,530 $194,740,211
Staffing Level 1,696 1,708 1,722
Ratio 9.22 9.28 8.83
GENERAL FUND SUMMARY
EXPENDITURES BY CATEGORY
8.60
8.80
9.00
9.20
9.40
2013 2014 2015
STAFFING LEVEL PER MILLION DOLLARS BUDGETED
112
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2013
Actual
Expend.
2014
Adopted
Budget
2015
Adopted
Budget
GENERAL FUND
GENERAL ADMINISTRATIVE
101001 City Clerk 207,125$ 189,276$ 190,541$
101002 Administrative & General 18,471,416 14,763,384 21,480,968
101003 Employee Benefits 3,954,029 3,468,472 4,514,550
101004 Racial and Cultural Diversity 158,273 150,368 154,688
101006 Mayor & City Manager Administration 1,343,573 1,374,533 1,361,815
101007 Emergency Management 65,637 59,668 64,162
101008 Small & Minority Women Owned Bus. Dev. 62,180 55,061 53,443
101009 Little Rock Television 256,343 235,528 241,875
Total General Administrative 24,518,576 20,296,290 28,062,042
BOARD OF DIRECTORS
101111 Board of Directors 276,766 338,527 342,027
COMMUNITY PROGRAMS
101501 Administration 288,975 299,358 334,441
101503 Operations 83,763 88,723 89,137
Total Community Programs 372,737 388,081 423,578
CITY ATTORNEY
101801 City Attorney 1,565,809 1,769,774 1,836,901
LITTLE ROCK DISTRICT COURT
102101 District Court First Division 1,179,375 1,392,505 1,405,790
LITTLE ROCK DISTRICT COURT
102201 District Court Second Division 1,186,390 1,247,286 1,248,245
LITTLE ROCK DISTRICT COURT
102301 District Court Third Division 583,991 627,185 626,782
FINANCE
102501 Administration 533,535 576,786 579,508
102515 Budget 164,528 173,999 175,177
102520 Internal Audit 163,026 169,346 170,225
102530 Accounting and Reporting 477,150 499,843 539,657
102531 Accounts Payable 312,880 331,036 341,316
102535 Payroll 203,615 212,873 212,409
102540 Treasury Management 533,397 573,309 609,081
102550 Purchasing 217,986 262,640 240,909
102555
Print Shop 36,661
68,673 65,517
102560 Grants Management 257,319 268,487 270,325
Total Finance 2,900,097 3,136,992 3,204,124
HUMAN RESOURCES
102701 Human Resources 1,519,584 1,632,677 1,673,177
INFORMATION TECHNOLOGY
103001 Administration 636,053 1,011,402 1,010,105
103010 Application Programming 1,092,868 1,205,301 1,376,331
103030 Networking 2,059,559 2,141,619 2,293,348
Total Information Technology 3,788,479 4,358,322 4,679,784
CITY OF LITTLE ROCK
2015 OPERATING EXPENSES
113
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2013
Actual
Expend.
2014
Adopted
Budget
2015
Adopted
Budget
CITY OF LITTLE ROCK
2015 OPERATING EXPENSES
PLANNING AND DEVELOPMENT
103301 Administration & Budget 247,781 309,532 305,083
103310 Planning 295,069 430,229 440,589
103320 Zoning & Subdivision 687,127 856,908 850,885
103330 Building Codes 822,095 987,299 967,635
Total Planning and Development 2,052,072 2,583,968 2,564,192
HOUSING AND NEIGHBORHOOD PROGRAMS
103501 Administration 509,313 356,306 369,781
103510 Animal Services 951,756 1,162,608 1,209,089
103520 CDBG - Housing Programs 7,872 5,157 14,367
103530 Neighborhood Programs 2,382,845 2,936,213 2,936,131
103539 Neighborhood Alert Centers 710,451 744,129 791,325
103540 Neighborhood Resource Center 358,115 230,755 231,506
103550 Environmental Services 208,742 238,671 238,190
Total Housing and Neighborhood Programs 5,129,094 5,673,839 5,790,389
PUBLIC WORKS
104010 Building Services 974,942 1,095,023 1,088,666
104020 Asset Management 71,459 71,256
Total Public Works 974,942 1,166,482 1,159,922
PARKS AND RECREATION
104501 Administration 383,416 448,055 448,472
104503 Design Scheduling 339,932 308,473 312,062
104510 Resources Administration 359,877 464,904 455,154
104511 Cultural Museum 183,235 198,913 199,896
104512 Therapeutic 134,435 173,329 174,482
104521 Development and Maintenance 124,725 126,258 99,794
104522 Operations and Improvement Development 1,001,940 1,148,078 1,119,932
104523 Park Maintenance 2,234,435 2,407,313 2,472,819
104524 Horticulture 762,861 929,517 950,727
104525 Urban Forestry 334,632 449,953 509,081
104530 Recreation Administration 152,568 160,733 155,774
104531 Community Center Administration 86,477 113,169 113,418
104532 Dunbar Community Center 459,674 441,096 447,420
104533 East Little Rock Recreation Center 74,264 79,241 79,852
104534 Senior Programs 75,945 102,900 102,900
104536 Southwest Community Center 558,989 640,472 647,196
104537 Stephens Community Center 236,939 252,724 256,282
104538 The Centre at University Park 182,330 327,231 297,195
104539 West Central Community Center 136,680
104556 Athletics/Playgrounds 566,083 596,296 606,794
104557 Tennis Center Operations 268,401 287,969 289,935
104558 N.W. Hill Community Complex 53,886 83,067 83,067
Total Parks and Recreation 8,575,043 9,739,691 9,958,932
RiverMarket 1,188,197 1,208,675 1,209,164
Golf
104701 Administration 91,022 94,495 94,927
104710 Rebsamen Golf Pro 453,129 391,941 433,183
104711 Rebsamen Golf Maintenance 591,473 521,777 519,608
104712 Rebsamen Pro Golf Concessions 97,397 58,533 77,520
104720 War Memorial Golf Pro 280,572 257,262 284,502
104721 War Memorial Golf Maintenance 281,041 314,459 315,714
104740 Hindman Pro Golf 301,979 292,934 324,015
104741 Hindman Golf Maintenance 290,249 255,764 259,435
Total Golf Fund 2,386,862 2,187,165 2,308,904
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2013
Actual
Expend.
2014
Adopted
Budget
2015
Adopted
Budget
CITY OF LITTLE ROCK
2015 OPERATING EXPENSES
Jim Dailey Fitness and Aquatic Center 847,286 896,565 901,127
ZOO
106501 Zoo Administration 337,705 322,369 381,953
106510 Zoo Concessions 373,527 306,769 368,343
106520 Zoo Education 317,540 350,311 384,918
106530 Zoo Gift Shop 155,970 243,680 270,077
106540 Zoo Membership 35,623 57,966 68,215
106550 Zoo Special Events 179,360 103,430 108,297
106560 Zoo Marketing & Promotions 482,137 498,097 449,970
106570 Zoo Facilities Operation 1,698,718 1,989,065 2,051,227
106580 Animal Management 1,988,817 2,206,573 2,312,555
106590 Visitor Service Administration 487,287 410,541 338,172
Total Zoo Fund 6,056,684 6,488,801 6,733,727
FIRE
105101 Administration 1,039,751 1,082,358 1,069,476
105102 Fire Pension 5,346,879 5,556,595 5,581,664
105120 Fire Suppressing and Rescue 35,490,421 37,144,014 37,664,970
105130 Fire Prevention - Investigation 488,570 512,823 515,932
105140 Fire Training 574,396 579,130 490,762
105150 Crash Fire Rescue - Airport 919,020 899,666 909,449
Total Fire 43,859,037 45,774,586 46,232,253
POLICE
105201 Administration 2,789,549 3,184,485 3,238,656
105202 Police Pension 6,394,938 6,345,547 6,203,185
105215 Organized Crime - Intelligence 5,515,388 5,744,576 4,867,077
105220 Training and Crime Prevention 3,380,340 2,233,737 4,254,310
105225 Detectives 5,522,638 5,666,861 5,783,778
105230 Downtown Patrol 10,564,098 11,291,529 11,058,451
105235 Southwest Patrol 8,273,696 8,354,085 9,321,418
105245 WW Willams Northwest Substation 8,991,895 9,979,196
10,633,826
105250 Airport Police 2,063,714 1,929,214 1,751,517
105255 Police Records Support Service 6,986,535 8,360,054 7,684,011
105260 Communication Center 3,451,681 4,111,575 4,088,843
Total Police 63,934,472 67,200,859 68,885,072
Less Vacancy Reduction (5,000,000) (6,000,000)
General Fund Operating Total 172,895,492 173,108,270 183,246,132
TRANSFER/OUT OTHER EXPENSES
Transfer out to Street Fund 1,282,000 1,082,000 1,082,000
Special Projects/PIT 10,130,538 9,074,260 9,412,079
Contingency/Reserve 1,000,000 1,000,000
Sub-total 11,412,538 11,156,260 11,494,079
GENERAL FUND TOTAL 184,308,030 184,264,530 194,740,211
115
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2013
Actual
Expend.
2014
Adopted
Budget
2015
Adopted
Budget
CITY OF LITTLE ROCK
2015 OPERATING EXPENSES
PUBLIC WORKS - STREET
204001 Administration 759,294 1,058,292 1,116,215
204002 Operations Administration 526,884 1,229,701 892,662
204003 Street and Drainage Maintenance 6,076,025 8,586,915 9,385,249
204005 Storm Drain Maintenance 831,054 925,032 970,330
204006 Work Pool 121,048 170,122 188,669
204007 Resource Control and Scheduling 393,203 406,340 399,335
204008 Control Devices 832,037 912,809 912,765
204010 Signals 841,052 917,220 1,048,178
204015 Parking Meters 98,144 106,689 107,143
204020 Civil Engineering 1,259,144 1,486,133 1,472,255
204025 Traffic Engineering 3,379,342 3,277,281 3,280,654
204030 Parking Enforcement 218,796 287,162 276,771
Total Street Fund 15,336,023 19,363,696 20,050,226
FLEET SERVICES
600001 Administration 851,563 825,640 676,715
600011 Acquisition & Disposal 7,421,279 7,823,780 8,109,464
600020 Financial Management 261,889 308,520 729,618
600031 Maintenance Administration 4,148,335 4,177,748 3,778,478
Total Fleet Services 12,683,067 13,135,688 13,294,275
VEHICLE STORAGE FACILITY 1,333,661 1,321,150 1,359,144
WASTE DISPOSAL
603101 Administration 1,878,738 1,907,192 1,638,137
603110 Collection 10,432,022 11,357,804 11,079,966
603120 Disposal 3,321,968 3,608,284 3,594,424
603125 Composting 558,489 563,746 591,402
603130 Waste Management 426,291 218,900 223,550
Total Waste Disposal Fund 16,617,509 17,655,926 17,127,479
PARKING GARAGES 2,104,780 2,224,167 2,196,750
GRAND TOTAL ALL FUNDS 232,383,070$ 237,965,157$ 248,768,085$
116
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CITY OF LITTLE ROCK
2015 ALLOCATION OF
FULL TIME PERSONNEL
Police
33.76%
Fire
19.82%
Parks
7.44%
All Other
General Fund
17.18%
Fleet
3.58%
Street
10.03%
Waste
5.32%
Zoo
2.87%
Police 717 Fire 421 Street 213
Waste 113 Zoo 61 All Other 365
General
Fleet & Vehicle Fund
Storage Facility 76 Parks 158
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2013 2014 2015
Adopted Adopted Adopted
Budget Budget Budget
General Fund
General Administrative 26 31 31
Board of Directors 1 1 1
Community Programs 10 10 11
City Attorney 18 18 19
District Court First Division 21 21 21
District Court Second Division 17 17 17
District Court Third Division 7 8 8
Finance 41 41 42
Human Resources 19 19 20
Information Technology 39 39 39
Planning & Development 39 39 39
Housing & Neighborhood Programs 103 103 104
Public Works - General 13 13 13
Parks & Recreation 119 122 127
Golf 21 21 22
Jim Dailey Fitness Center 9 9 9
Zoo 57 59 61
Fire 421 421 421
Police 715 716 717
Subtotal General Fund 1,696 1,708 1,722
Other Funds
Public Works - Street 215 213 213
Fleet Services 61 61 61
Vehicle Storage Facility 15 15 15
Waste Disposal 113 113 113
Subtotal Other Funds 404 402 402
Total Personnel 2,100 2,110 2,124
CITY OF LITTLE ROCK
FULL TIME PERSONNEL BUDGET SUMMARY
118
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CITY OF LITTLE ROCK
FULL-TIME PERSONNEL AUTHORIZATIONS
2011 - 2015
2016
2073
2100
2110
2124
2000
2020
2040
2060
2080
2100
2120
2140
2011 2012 2013 2014 2015
EMPLOYEES
The net change in personnel between 2014 and 2015 total positions are as indicated
in the chart below.
2014 Adopted Budget 2,110
Community Programs 1
City Attorney 1
Finance 1
Information Technology 1
Housing & Neighborhood Programs 1
Parks and Recreation 5
Golf 1
Zoo 2
Police 1
2015 Adopted Budget 2,124
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CITY OF LITTLE ROCK
2015 OTHER GENERAL FUND EXPENDITURES
2013 2014 2015 Increase
Budget Budget Budget (Decrease)
SPECIAL PROJECTS
Children, Youth, & Families (CYF
)
$5,500,000 $5,500,000 $5,500,000
Facility Improvements 975,000 975,000