2012 Annual Operating Budget
City of Little Rock, Arkansas
With a daunting $8 million dollar budget shortfall on the horizon, City leaders asked
the citizens of Little Rock to support them in their effort to increase an inadequate ½-
cent sales tax that had been in place for the past seventeen (17) years. On
September 13, 2011, the citizens of Little Rock approved a one (1)-cent sales tax
increase that would allow the City to fill critical positions that have remained vacant
for many years and would provide Little Rock with the opportunity to move forward
with much needed programs and projects. The tax increase, which includes a
permanent 5/8-cent operations tax and a 3/8-cent ten (10)-year capital tax, will
provide additional Police Officers, more Code Enforcement Officers, new Fire and
Police facilities and a new emergency communications system.
On February 21, 2012, the Little Rock City Board of Directors approved Resolution
No. 13,440, which appointed the Little Rock Citizen’s Evaluation of New Tax (LR
CENT) Committee. The Committee, which is made of two (2) Co-Chairs, individuals
from each of the City’s seven (7) Wards and three (3) At-Large Members, will meet
on a quarterly basis to evaluate the spending of the additional revenue that will come
as a result of the recently enacted one (1)-cent sales tax increase.
City of Little Rock, Arkansas 2012 Operating Budget
City of Little Rock
2012 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 2012 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 2012 budget document and 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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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.............................................................17
City of Little Rock Operating Fund Structure .....................................................19
City Manger’s Transmittal Letter........................................................................21
Overall City Goals and Objectives.................................................................33
THE BUDGET PROCESS
The General Government Budget Process .......................................................37
Amending the Budget ........................................................................................39
Budget Policies ..................................................................................................40
Other Budget Procedures..............................................................................41
FINANCIAL STRUCTURE
Little Rock's Financial Structure.........................................................................43
Funds Controlled by the Governing Body..........................................................43
Fiscal Policies ....................................................................................................48
Other Agencies ..................................................................................................54
BUDGET SUMMARIES
Budget Summaries........................................................................................57
2012 Operating Fund Budget Summaries Graph..............................................58
General Fund Activity Graph .............................................................................59
Budget Summary by Fund Type....................................................................60
General Government Summary.....................................................................61
Special Revenue Funds.................................................................................62
Capital Project Funds. ...................................................................................65
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TABLE OF CONTENTS (CONTINUED)
Enterprise Funds ...........................................................................................68
Internal Service Fund ....................................................................................72
Fiduciary Funds.............................................................................................73
Debt Service Funds.......................................................................................75
2012 Long Term Forecast .............................................................................78
REVENUES
All Funds Operating Revenue Sources Graph ..................................................83
All Funds Operating Revenue Summary...........................................................84
General Fund Summary of Revenue.................................................................85
All Funds Operating Revenue Detail.................................................................86
Revenue Trends ................................................................................................91
General Fund Revenue Sources and Trends Graph.......................................104
EXPENDITURES
All Funds Expenditures by Classification Graph..............................................105
All Funds Department Budgets Summary .......................................................106
Summary of General Government Appropriations Graph ...............................107
General Fund Summary Graph .......................................................................108
Operating Budget Detail...................................................................................109
Staffing Summaries..........................................................................................113
City of Little Rock One Half Percent Sales Tax Graph ................................116
Other General Fund Budget Expenditures ......................................................117
Service Program Graph...................................................................................118
Service Program Category ..............................................................................119
Public Safety Revenue and Expenditure Comparisons...................................121
Public Safety Operating Expenditures as a Percentage of General Fund .....122
CAPITAL IMPROVEMENTS
Capital Funding................................................................................................123
Capital Project Funds Provided by Bond Issues .............................................123
Capital Project Funds Provided by Other Sources..........................................125
2012 Capital Improvements.........................................................................128
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2012 Major Capital Projects ........................................................................128
Significant Routine Capital Expenditures.............................................129
Significant Non-Routine Capital Expenditures.....................................130
Significant Non-recurring Parks and Zoo Projects Funded
by the 2009A Capital Construction Revenue Bonds.......................130
Other Significant Non-Recurring Capital Improvements......................133
Capital Funding Activity Graphs ..................................................................140
DEBT MANAGEMENT
Debt Management.......................................................................................141
City’s Legal Debt Margin .............................................................................141
Debt Applicable to Debt Limit 2004 – 2011..................................................142
Summary of Bond Indebtedness..................................................................143
Future Debt Service.....................................................................................144
GENERAL FUND DEPARTMENTS
Mayor...............................................................................................................147
City Manager ...................................................................................................151
Board of Directors............................................................................................157
Community Programs......................................................................................161
City Attorney....................................................................................................167
District Court First Division..........................................................................173
District Court Second Division.....................................................................179
District Court Third Division.............................................................................185
Finance............................................................................................................191
Human Resources...........................................................................................197
Information Technology...................................................................................203
Planning and Development .............................................................................209
Housing and Neighborhood Programs ...........................................................215
Public Works General......................................................................................221
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Parks and Recreation......................................................................................227
Fire ..................................................................................................................233
Police...............................................................................................................239
SPECIAL REVENUE FUND DEPARTMENT
Public Works Street.........................................................................................245
INTERNAL SERVICE FUND DEPARTMENT
Fleet Services..................................................................................................251
ENTERPRISE FUND DEPARTMENTS
Vehicle Storage Facility...................................................................................257
Waste Disposal................................................................................................263
River Market ....................................................................................................269
Zoo ..................................................................................................................273
Golf..................................................................................................................279
Jim Dailey Fitness and Aquatic Center............................................................285
APPENDIX
State and City Budget Statutes........................................................................291
Statistical Information.......................................................................................295
Glossary of Key Budget Terms........................................................................305
Glossary of Key Acronyms Terms...................................................................312
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LITTLE ROCK AT A GLANCE
Little Rock is the Capital City of Arkansas with a population of 193,524, and a
metropolitan area population of 699,757. More than one million individuals live
within a 70-mile radius of Little Rock. It is centrally located – where the southeast
meets the southwest, near the geographic center of Arkansas. Little Rock derives
its name from a small rock formation on the south bank of the Arkansas River called
la Petite Roche (French: “the little rock”). The “little rock” was used by early river
traffic as a landmark and became a well-known river crossing. Major industries
include: service; medicine; government; retail; technology; and manufacturing.
Little Rock remains a vital job center within the central Arkansas region. During the
economic downturn experienced in 2008 and 2009, the City benefitted from the
economic stability provided by its higher-than average employment share in two
comparatively stable economic sectors: government and health care. The presence
of these industries helps to explain the City’s lower than average unemployment of
approximately 6%.
New businesses and housing opportunities are bringing people back to the City’s
core to live, shop, work and play. The William Jefferson Clinton Presidential
Library and Park and the headquarters for Heifer International in the River Market
District, and an expanding nationally-recognized bike trail system are projects that
continue to increase tourism in Little Rock.
Medical facilities in the Little Rock area provide efficient, comprehensive service to
more than two million individuals throughout the state. The twenty major area
hospitals provide bed space for over 3,457 patients. There are a large number of
specialty clinics, including 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’s
four colleges and the Graduate School serve more than 2,800 students. The
University of Arkansas at Little Rock (UALR) is a metropolitan university servicing
13,000 students with a wide range of degree offerings, 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.
Located on the banks of the Arkansas River, Little Rock is near the Ozark and
Ouachita Mountain Ranges, and several fine lakes and streams. Outdoor
recreational options are almost unlimited and include hiking, camping, boating,
hunting, fishing, golf, tennis, swimming, and soccer.
Greater Little Rock 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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Mayor Mark Stodola
Director Erma Hendrix
Ward One
Director Ken Richardson
Ward Two
Director Stacy Hurst
Ward Three
Vice Mayor Dean Kumpuris
Position Eight
Director Doris Wright
Ward Six
Director Lance Hines
Ward Five
Director Brad Cazort
Ward Four
Director Joan Adcock
Position Ten
Director Gene Fortson
Position Nine
Director B J Wyrick
Ward Seven
City of Little Rock
Board of Directors
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City of Little Rock, Arkansas 2012 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 explains 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 during the coming year,
which runs from 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, each year, the Mayor submits a recommended budget for the
fiscal year beginning January 1 to the Board of Directors. After an extensive
budget study process and public hearings to receive citizen input, the Mayor and
Board of Directors makes its decision on the final budget. By action of the Mayor
and Board of Directors, the budget is adopted and published.
The budget must be adopted on or before December 30. A calendar of events
for budget development activities for fiscal year 2012 is included in this document
to more adequately describe the budget development process.
The 2012 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 used to account for revenues and expenditures for the
regular day-to-day operations of the City. The primary sources of revenue for
this fund are local taxes and utility franchise fees.
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City of Little Rock, Arkansas 2012 Operating Budget
Departments in the General Fund are organized into the following:
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
Fire
Police
The three major types of other funds are:
1. Special Revenue Funds - These funds are used to account for the proceeds
of special revenue sources that are legally restricted to expenditures for
specific purposes.
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, golf and zoo.
3. Internal Services Fund - Funds that provide services to other parts of the City
organization, e.g., motor pool, vehicle maintenance and insurance.
Most payments to the Internal Services Fund are not shown as transfers, but as
line items within the budgets of the departments in all operating funds.
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City of Little Rock, Arkansas 2012 Operating Budget
Operating Flow of Funds
Revenues are deposited into the General Fund and Enterprise Funds as a result
of specific activities. For example:
General Fund Enterprise Funds
Property Taxes Service Rates
Sales Taxes Admission Fees
Licenses & Permits Intergovernmental Contracts
Expenditures are made from the General Fund and Enterprise Funds to support
activities related to each. 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 – Zoo, Golf, Jim Dailey Fitness & Aquatic Center, River
Market, Vehicle Storage Facility, Parking Garages and Waste Disposal.
Personnel, supplies and materials, repairs and maintenance, contractual,
closure/post closure, depreciation, debt service and transfer out.
General Fund, Enterprise Funds, and other user departments all make payments
into the Internal Service Fund to pay for Fleet operations and maintenance.
Capital Budget
The Capital Budget consists of major capital projects, which often require more
than a year’s time 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. The
completion of certain capital projects may be delayed for a period of time if
corresponding operating and maintenance funds are not available.
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City of Little Rock, Arkansas 2012 Operating Budget
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. Open project accounts channel
payments for project work to individual contractors. 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, you
will find each Department’s organizational chart showing the services which are
included in the section, Mission Statement, Personnel Summary, 2011 Priorities
results, 2012 Goals, and applicable service measures.
The General Fund, Street Fund and Proprietary Funds expenditure sections of
the budget provide very detailed information. Major Categories of expenditures
may include the following:
Personal Services (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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MANAGEMENT TEAM
Mark Stodola Mayor
Bruce T. Moore City Manager
Bryan Day Assistant City Manager
Dorothy Nayles 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
Don Flegal Director of Human Resources
Randy Foshee Director of Information Technology
Tony Bozynski Director of Planning & Development
Andre Bernard Director of Housing & Neighborhood Programs
Steve Beck Director of Public Works
Truman Tolefree Director of Parks & Recreation
Gregory Summers Fire Chief
Stuart Thomas 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 of Little Rock Organizational Chart
City Manager
Assistant City Manager
Community Programs
Police
Fleet Services
Parks and Recreation
Information Technology
City Attorney
Human Resources
Public Works
Planning and Development
City Clerk
Fire
Finance
Housing and Neighborhood
Programs
Citizens
Mayor and Board of Directors
Boards and Commissions
Zoo
District Courts
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City Manager
Assistant City Manager
Community Programs
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
Fire
Finance
Parking Garages
Federal Programs
Parks and Recreation
Parks and Recreation
Golf Enterprise
Jim Dailey Fitness and Aquatics
Center Enterprise
River Market Enterprise
Citizens
Mayor and Board of Directors
Boards and Commissions
Zoo
District Courts
City of Little Rock Organizational Chart
by Fund Responsibilities
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Little Rock Zoo: The Little Rock Zoo increased revenue in 2011 with improved
attendance and by enhancing performance in special events and other
amenities. The Zoo continues to provide new and exciting opportunities for
guests, and as such, opened the new Laura P. Nichols Penguin Pointe exhibit
and also offered the Wild Wonders Animal Show featuring free flying birds, live
mammals and reptiles in a fun presentation at the Civitan Amphitheater Stage.
The Zoo accomplished several capital projects in 2011, including updates and
improvements to animal exhibits and pedestrian walkways. In addition, the Zoo
began construction on the Laura P. Nichols Cheetah Conservation Outpost that
will open in June 2012. The Zoo also went through a strategic planning process
to improve and secure long-term strategies for operating and funding the Zoo
and a final report was completed in June 2011.
Community Programs: The Community Programs Department sustained its
Prevention Intervention and Treatment Programs by efficiently processing
contracts and reimbursements. The Department continued to employ youth City-
wide as an expansion of its year-round programming. In addition, the Department
worked with the Children, Youth and Families Commission to develop a strategic
plan.
Housing & Neighborhood Programs: The City of Little Rock was awarded
$8.6 million in Neighborhood Stabilization Funds (NSP2) to eliminate blighted,
vacant, foreclosed and abandoned properties in Little Rock. The NSP2
Consortium was able to expend $4.5 million in grant funds through the end of
2011 and over 90% of the grant funds have been obligated. Code Enforcement
Staff partnered with Zoning Enforcement Staff to enforce a new No Parking in
Yards ordinance. Code Enforcement Staff continued to make visible
improvement in the community by removing 107 unsafe vacant structures in
2011. The City acquired thirty-four (34) properties to be included in the City of
Little Rock Land Bank. Phase-One of the Little Rock Animal Village Dog Park
was opened, and the City established a partnership with PetSmart and their
Rescue Waggin’ Program. The Animal Village had a record year of adoptions in
excess of 2,000 animals. The Animal Village began opening the facility on
Saturdays to allow more public access and a variety of special events.
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. With the passage of the new sales
tax, the City expects to achieve the $10,000,000 initial goal by the end of 2012
with the intent of gradually increasing the Restricted Reserve to achieve 10% of
General Fund revenues in the next few years.
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City of Little Rock, Arkansas 2012 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 2012 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 2012 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 2012 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 2012 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 2012 Operating Budget
THE BUDGET PROCESS
The City’s annual budget is the final product of a lengthy, public process. The
budget projects all receipts and disbursements, the level of governmental
services, and the method of distributing cost to the various segments of the
community. It is the result of an evaluation of community needs and reflects
priorities established by the Mayor and 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 City’s budget process normally requires the majority of the year to complete.
The budget process begins with a budget preparation package that is distributed
to the Department Heads. The package include guidelines from the City
Manager and budget reports that include the prior year expenditures, current
year budget and year-to-date expenditures for all operating accounts, initial
revenue projections, a capital improvement listing, and a budget preparation
calendar. The FY12 percentage target change for expenditures by department is
included in the operating budget guidelines and is applied to the total for all
supplies, contractual and utilities categories. Budget staff provided training
sessions on the budget process and budget monitoring. Departments submit
their expenditure requests and initial revisions are made by the Finance
department. The City departments’ budget requests are reviewed and initial
internal budget hearings are conducted with the Mayor and City Manager.
Revenues and expenditures receive final adjustments prior to submission to 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 goes 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
grant funds or bond issues were considered. The total costs of each project and
the sources of funding required to finance each project are estimated. The FY12
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.
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City of Little Rock, Arkansas 2012 Operating Budget
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 relationship to their performance of their
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 2012 Budget
The 2012 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
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 almost
always 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 2012 budgets is as follows:
April-May Mayor and City Manager provided general direction
and guidance for operating and capital budgets.
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City of Little Rock, Arkansas 2012 Operating Budget
June-July
Initial revenue and personnel costs budgets were
developed, programs were assessed; new
programs and capital budget requests were
submitted.
July-September Board of Directors, Mayor, and the City Manager
held public hearings with citizens to discuss priority
needs and define plans for a sales tax election to be
held on September 13, 2011 to provide the
operational and capital funding required to meet
those needs. The one (1) cent sales tax was
passed with a permanent five-eighths (5/8)-cent
committed to ongoing operations and a temporary
three-eighths (3/8)-cent committed to capital
projects and economic development over the next
ten (10) years.
September-October City departments prepared budget requests and
submitted them to the Mayor and City Manager.
October-November City Manager evaluated budget requests. Board
adopted property tax levies.
November-December Budget request was revised. Board held budget
workshop. Board held public hearings.
December Board adopted utility franchise fee rates with no
increase, and adopted the final budget.
AMENDING THE BUDGET
During the fiscal year, several adjustments are normally required to the 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.
All new appropriations must be authorized by Board Ordinance and are
normally submitted by the City Manager, but can be initiated directly by the
Mayor and Board of Directors.
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City of Little Rock, Arkansas 2012 Operating Budget
Funds Controlled by the City Governing Body
The Funds controlled are:
General;
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 several significant budget policies that are
designed to enhance the ultimately approved budgets and accomplish specific
objectives. These policies include:
The 2012 budget includes salary increases for full time non-uniform non-
union, American Federation of State, County and Municipal Employees
(AFSCME), the International Association of Fire Firefighters and the Fraternal
Order of Police positions. Due to the deferral of 2010 contracted increases,
contracts were extended one year. These positions are budgeted for the
2012 year at the 2011 contract rates. Step and grade increases were
budgeted at 2011 rates. Non-uniform positions were budgeted a three (3) %
merit based pay increase.
Vacant positions at the time the budget is adopted are budgeted at the mid-
range salary for the positions’ 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 used to reduce personnel budget
allocations by department.
The City utilized the in-house payroll system to aid in the development of the
budget for salary and benefit costs for 2012. 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.
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Fleet Services internal service fund expenditures for vehicle maintenance are
established and then allocated to vehicle user departments. 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 personnel or vehicle
maintenance budget allocations, and are instructed not to make any increase
in their other operating budget accounts without specific approval from the
City Manager. For 2012, most departments were authorized to fill key vacant
positions and to implement priority needs supported by the new sales tax.
Estimated costs and funding sources will be identified and verified prior to any
project being submitted to the Board for approval.
These policies are designed to ensure that operating departments will have
sufficient funds available to support their services, and that budget reductions
during the course of the fiscal year are unlikely.
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 fund budgets are developed in accordance with their specific federal
guidelines, including obtaining required citizen input, and then are presented to
the Mayor and Board of Directors for final approval.
The Discrete Component Units funds all develop separate budgets for approval
by their 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 their 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. 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
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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 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 2012 Operating Budget
LITTLE ROCK'S FINANCIAL STRUCTURE
Cities in Arkansas derive their 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
for 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. Parking meter
revenues and reimbursement for street cuts are also 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 Grants are recorded in this fund.
Community Development Block Grant Fund – This fund receives
Federal block grants used primarily for street improvements, community
services and community center operations.
Neighborhood Housing Special Project Fund (NHSP)
– Accounts for
the proceeds of Community Development Block Grant – Section 108
Guaranteed Loan Program and other City funds that are utilized to provide
housing and housing assistance to qualifying citizens and to improve
neighborhood infrastructure.
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Home Investment Partnership Fund (HIPP) – Accounts for HOME and
other funds received from the U.S. Department of Housing and Urban
Development. These monies are expended 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. There is a corresponding capital projects fund
established for each bond issue.
1988 Capital Improvements Fund – Accounts for the proceeds of the
1988 Capital Improvement Bonds issued to finance improvements to
streets and drainage systems, parks, the City’s arts center, museum and
Robinson Auditorium, as well as to construct a new police substation, a
library branch and two fire stations. The remaining funds available from
interest earnings on these bond funds have been allocated to the South
Loop and Scott Hamilton Drive improvement project.
1995 Capital Improvements Fund – Accounts for the proceeds of the
1995 Series B Capital Improvement Bonds which were issued to finance
the cost of various capital improvements for the City, including streets,
parks, drainage, fire stations, police facilities, and community centers.
2002 Capital Improvement Junior Lien Revenue Bonds – The 2002
Capital Improvement Junior Lien Revenue Bonds were issued to finance
the 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.
2004 Limited Tax General Obligation Refunding Bond – 2004 Limited
Tax General Obligation Refunding Bonds were issued to finance capital
improvements within the City of Little Rock, to fund capitalized interest and
to pay the costs of issuance of the bonds. These bonds are limited tax
general obligations secured by all proceeds derived from a separate 3.3
mills annual ad valorem tax on real and personal property located within
the City. The remaining funds available from interest earnings on these
bond funds have been allocated to a traffic signal and intersection
improvements at Vimy Ridge Road and Alexander Road. Any residual
balance may be allocated to retire debt on the bonds.
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2004 Central Arkansas Library Capital Improvements – Accounts for
the proceeds of the 2004A and 2004B Library Improvement and
Refunding Bonds issued to refund the Series 1999B Library Improvement
and Refunding Bonds and the Series 2002 Library Improvement Bonds, to
finance the cost of acquiring, constructing and equipping capital
improvements to the public city libraries operated by the City and the
Central Arkansas Library System, and to pay the costs of issuance of the
bonds.
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.
2009A Parks and Recreation 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 bonds are special obligations, payable solely from
the revenues derived from the operation and ownership of the zoo, parks
and recreation facilities.
Short Term Financing – Accounts for proceeds of Short Term Financing
notes issued to acquire capital equipment, building improvements and
vehicles for the City.
PROPRIETARY FUNDS
Waste Disposal Enterprise Fund
– This fund was created to account for
the City's solid waste system.
River Market Enterprise Fund
– This fund was created to account for the
City’s River Market and Amphitheater operations.
Golf Enterprise Fund – This fund was created to account for the
operations of the City’s three golf courses.
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Jim Dailey Fitness and Aquatic Center Enterprise Fund – This fund
was created to account for the operations of the City’s Fitness Center.
Zoo Enterprise Fund – This fund was created to account for the
operations of the City’s and State’s only Zoo.
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 garages.
Presidential Park Fund – This fund accounts for the park land and other
capital improvements associated with the area surrounding the Clinton
Library. It also includes Parks Revenue bonds refunded in 2009 to fund
various Parks and Zoo capital projects.
FIDUCIARY FUNDS CONTROLLED BY BOARDS OF TRUSTEES
An important benefit for City employees is a retirement plan. Administering these
funds is an important City responsibility. The following retirement funds are
offered by the City and cover substantially all employees:
Firemen's Relief and Pension Fund
Policemen's Pension and Relief Fund
Non Uniform Defined Contribution Pension Fund
Non Uniform Defined Benefit
Pension Health Management Trust Fund
All pension funds receive contributions from both employees and the City. The
Firemen and Policemen's funds also receive property tax 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:
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Little Rock Wastewater Utility
Little Rock National Airport
Little Rock Advertising & Promotion Commission
Little Rock Port Authority
Little Rock Ambulance Authority
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, who 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
This budget also 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 2012 Operating Budget
FISCAL POLICIES
A. OPERATING MANAGEMENT
1. All City departments will 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 of funding.
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.
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5. The City will not use long-term debt to finance current operations.
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 few years, the City has not been able to meet their goal. The
restricted reserve is currently $9,418,000.
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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 Arkansas Repertory Theatre attracts persons to theatrical productions and
programs and to the downtown area for specific art exhibits and events. It plays
a significant role in efforts to stabilize and rejuvenate Little Rock’s historic central
business district.
The Arkansas Symphony Orchestra provides a vital cultural experience to the
City and to central Arkansas.
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, and 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 Sister Cities Commission promotes sister city agreements between Little
Rock and other cities around the globe.
PAGIS - The Pulaski Area Geographical Information System 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.
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Wildwood Theatre is one of the nation’s largest land areas devoted to the
performing arts with a 105-acre site. The Theatre promotes educational and
cultural programs designed to enhance public appreciation of and support for the
performing arts that contribute to the quality of life within the region.
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.
Faulkner County Detention facility provides the Little Rock Police Department
the utilization of 30 beds for those felons and serious misdemeanants who would
otherwise be released from the Pulaski County facility due to constant over
crowding by more serious felons and undermines the security of the community.
Some of the above agencies are sufficiently dependent on or controlled by the
City that they are included in this budget in the discrete component unit section.
ADOPTED ADOPTED ADOPTED ADOPTED ADOPTED
2008 2009 2010 2011 2012
Central Arkansas Transit $6,341,288 $6,826,697 $5,915,270 $6,602,836 $7,511,153
Arkansas Arts Center 324,000 249,000 200,000 200,000 300,000
Museum of Discovery 324,000 249,000 200,000 200,000 200,000
County Bond Payment * 137,000 191,600 189,775 56,100 56,100
Chamber of Commerce 200,000 200,000 200,000 200,000 200,000
Metroplan 157,694 157,694 157,694 163,484 163,484
Downtown Partnership 149,741 149,741 125,000 125,000 125,000
PAGIS 129,500 129,500 129,500 129,500 129,500
Arkansas Symphony Orchestra ** 50,000
Arkansas Repertory Theatre ** 50,000
St. Vincent 25,381 25,381 25,381 25,381 25,381
LR. City Beautiful Commission 2,500 2,500 2,500 2,500 2,500
County Regional Detention Center 1,547,299 1,547,299 1,463,000 1,463,000 1,463,000
Wildwood Theatre * 50,000
Faulkner County Jail *** 150,000 240,000
Total $9,638,403 $9,968,412 $8,608,120 $9,167,801 $10,176,118
* Prior to 2011, the County Bond and support for the County Health Department were combined. The Bond was retired in 2010.
** Beginning with 2009 funding for this agency was transferred to the Little Rock Advertising and Promotion Commission.
*** Beginning in 2010, a separate fee was added to fund supplemental jail space, eliminating the need for a separate contribution.
APPROPRIATIONS FOR OTHER AGENCIES
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56
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Budget Summaries
City of Little Rock, Arkansas 2012 Operating Budget
BUDGET SUMMARIES
The following schedules summarize the audited 2010 operating results, the 2011
unaudited operating results, and the approved 2012 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 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;
River Market;
Zoo;
Golf;
Jim Dailey Fitness and Aquatic Center;
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 $17,648,900 $5,040,000 $22,688,900
Sales Taxes 92,199,900 92,199,900
License and Permits 9,664,800 249,500 9,914,300
Intergovernmental 2,190,000 9,770,794 11,960,794
Charge for Service 4,901,300 9,000 25,362,600 11,667,454 41,940,354
Fines and Fees 3,409,700 82,880 3,492,580
Utility Franchise Fees 26,332,200 26,332,200
Investment Income 25,000 1,000 10,475 36,475
Miscellaneous 868,500 15,000 250,120 1,133,620
Transfers In 1,319,515 1,715,818 5,327,432 8,362,765
Total Revenues 158,559,815 16,551,612 31,283,007 11,667,454 218,061,888
Expenditures
Personnel 108,123,085 9,188,772 10,418,199 3,319,520 131,049,576
Supplies and Material 4,794,089 1,275,521 2,895,327 6,145,000 15,109,937
Repairs and Maintenance 5,095,607 2,595,283 3,423,907 153,500 11,268,297
Contractual 17,413,714 3,025,819 7,213,311 1,910,859 29,563,703
Closure/Post Closure 247,945 247,945
Capital Outlay 414,062 414,062
Depreciation and Amortization 3,635,549 138,575 3,774,124
Debt Service 4,182,345 961,380 5,143,725
Transfers Out 18,536,913 466,217 3,697,575 22,700,705
Total Expenditures 158,559,815 16,551,612 32,493,193 11,667,454 219,272,074
Net Change in Fund Balance 0 0 (1,210,186) 0 (1,210,186)
Fund Balances - Beginning 22,866,080 2,666,905 20,283,038 2,521,690 $48,337,713
Fund Balances - Ending $22,866,080 $2,666,905 $19,072,852 $2,521,690 $47,127,527
2012 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
Ge ne ra l
Fund
Street
Fund
Enterprise
Funds
Fle e t
Services
Fund
Revenues
Expenditures
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Police
$55,007,824
34.69%
All Other
$22,378,815
14.11%
Property
Taxes
$17,648,900
11.13%
Utility
Franchises
$26,332,200
16.61%
Sales Taxes
$92,199,900
58.15%
Transfers
$18,536,913
11.69%
General
Government
$21,821,608
13.76%
Fire
$36,255,791
22.87%
Uses of Funds For
2012
Sources of Funds For
2012
FY 2012 GENERAL FUND
Parks &
Recreation
$8,528,829
5.38%
All Other
$18,408,850
11.61%
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INTERNA
L
DEB
T
GENERA
L
SPECIA
L
CAPITA
L
ENTERPRIS
E
SERVICE FIDUCIAR
Y
SERVICE
FUNDS REVENUES PROJECTS FUNDS FUND FUNDS FUNDS
2010
REVENUES: 145,726,425$ 38,139,287$ 78,234$ 30,784,561$ 9,666,219$ 30,707,057$ 20,404,299$
EXPENDITURES: 141,991,974 37,191,590 14,651,574 31,007,954 9,528,597 23,968,428 19,627,507
REVENUES OVER (UNDER)
EXPENDITURES 3,734,450 947,697 (14,573,340) (223,393) 137,622 6,738,629 776,792
BEGINNING FUND BAL. 22,276,670 6,043,916 35,096,989 26,261,009 2,869,071 176,519,415 16,593,060
ENDING FUND BAL. 26,011,120$ 6,991,614$ 20,523,648$ 26,037,616$ 3,006,693$ 183,258,043$ 17,369,852$
2011
REVENUES: 137,428,781$ 41,933,235$ 4,613,365$ 29,190,096$ 10,403,932$ 14,911,656$ 21,500,022$
EXPENDITURES: 139,106,100 39,486,817 9,344,946 32,882,930 10,888,935 26,307,202 19,228,106
REVENUES OVER (UNDER)
EXPENDITURES (1,677,318) 2,446,418 (4,731,581) (3,692,834) (485,003) (11,395,546) 2,271,917
BEGINNING FUND BAL. 26,011,120 6,991,614 20,523,648 26,037,616 3,006,693 183,258,043 17,369,852
ENDING FUND BAL. 24,333,802$ 9,438,032$ 15,792,067$ 22,344,782$ 2,521,690$ 171,862,496$ 19,641,769$
2012
REVENUES: 158,559,815$ 16,551,612$ -$ 31,283,007$ 11,667,454$ -$ -$
EXPENDITURES: 158,559,815 16,551,612
- 32,493,193 11,667,454 - -
REVENUES OVER (UNDER)
EXPENDITURES - - - (1,210,186) - - -
BEGINNING FUND BAL. 24,333,802 9,438,032 15,792,067 22,344,782 2,521,690 171,862,496 19,641,769
ENDING FUND BAL. 24,333,802$ 9,438,032$ 15,792,067$ 21,134,596$ 2,521,690$ 171,862,496$ 19,641,769$
CITY OF LITTLE ROCK
BUDGET SUMMARY BY FUND TYPE
FOR YEARS 2010 - 2012
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ADOPTED
ACTUAL AMENDED BUDGET
2010 2011 2012
GENERAL FUND
REVENUES: 141,143,481$ 132,354,330$ * 158,559,815$
EXPENDITURES: 137,256,329 134,354,330 158,559,815
REVENUES OVER (UNDER)
EXPENDITURES 3,887,152 (2,000,000)
* -
BEGINNING FUND BALANCE 20,978,928 24,866,080 22,866,080
ENDING FUND BALANCE 24,866,080$ 22,866,080$ 22,866,080$
SPECIAL PROJECTS & SEIZED MONEY FUND
REVENUES: 4,582,944$ 5,074,451$ -$
EXPENDITURES: 4,735,645 4,751,770 -
REVENUES OVER (UNDER)
EXPENDITURES (152,702) 322,682 -
BEGINNING FUND BALANCE 1,297,742 1,145,040 1,467,722
ENDING FUND BALANCE 1,145,040$ 1,467,722$ 1,467,722$
TOTAL BEGINNING FUND BALANCE 22,276,670$ 26,011,120$ 24,333,802$
TOTAL REVENUES 145,726,425 137,428,781 # 158,559,815
TOTAL EXPENDITURES 141,991,974 139,106,100 158,559,815
TOTAL ENDING FUND BALANC
E
26,011,120$ 24,333,802$ # 24,333,802$
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
2010-2012
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 initiatives.
*2011 Revenues have been reduced to reflect the use of $2,000,000 in carryover funds. This planned
use of available reserves results in a reduction of fund balance in 2011.
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ADOPTED
ACTUAL AMENDED BUDGET
2010 2011 2012
STREET
REVENUES: 16,113,897$ 15,238,843$ 16,551,612$
EXPENDITURES: 16,353,979 15,238,843 16,551,612
REVENUES OVER (UNDER)
EXPENDITURES (240,082) - -
BEGINNING FUND BALANCE 2,906,987 2,666,905 2,666,905
ENDING FUND BALANCE 2,666,90
5
$ 2,666,90
5
$ 2,666,90
5
$
SPECIAL PROJECT - STREET
REVENUES: 312,795$ -$ -$
EXPENDITURES: 278,126 134,213 -
REVENUES OVER (UNDER)
EXPENDITURES 34,669 (134,213) -
BEGINNING FUND BALANCE 126,079 160,748 26,535
ENDING FUND BALANCE 160,748$ 26,535$ 26,535$
SPECIAL PROJECTS
REVENUES: 6,403,632$ 5,130,486$ -$
EXPENDITURES: 5,028,649 3,515,529 -
REVENUES OVER (UNDER)
EXPENDITURES 1,374,983 1,614,958 -
BEGINNING FUND BALANCE 1,789,913 3,164,896 4,779,854
ENDING FUND BALANCE 3,164,896$ 4,779,854$ 4,779,854$
SPECIAL REVENUE FUNDS
OPERATING BUDGET
2010-2012
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ADOPTED
ACTUAL AMENDED BUDGET
2010 2011 2012
SPECIAL REVENUE FUNDS
OPERATING BUDGET
2010-2012
INFRASTRUCTURE
REVENUES: 221$ 146$ -$
EXPENDITURES: 114,771 1,013 -
REVENUES OVER (UNDER)
EXPENDITURES (114,550) (867) -
BEGINNING FUND BALANCE 173,279 58,729 57,863
ENDING FUND BALANCE 58,729$ 57,863$ 57,863$
EMERGENCY 911
REVENUES: 1,532,002$ 1,392,864$ -$
EXPENDITURES: 1,532,002 1,392,864 -
REVENUES OVER (UNDER)
EXPENDITURES - - -
BEGINNING FUND BALANCE 2,822 2,822 2,822
ENDING FUND BALANCE 2,822$ 2,822$ 2,822$
GRANTS
REVENUES: 9,361,419$ 12,392,538$ -$
EXPENDITURES: 9,338,238 12,414,537 -
REVENUES OVER (UNDER)
EXPENDITURES 23,181 (21,999) -
BEGINNING FUND BALANCE (3,576) 19,605 (2,394)
ENDING FUND BALANCE 19,605$ (2,394)$ (2,394)$
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ADOPTED
ACTUAL AMENDED BUDGET
2010 2011 2012
SPECIAL REVENUE FUNDS
OPERATING BUDGET
2010-2012
CDBG/HIPP/NHSP
REVENUES: 4,415,321$ 7,778,358$ -$
EXPENDITURES: 4,545,825 6,789,818 -
REVENUES OVER (UNDER)
EXPENDITURES (130,504) 988,540 -
BEGINNING FUND BALANCE 1,048,412 917,908 1,906,448
ENDING FUND BALANCE 917,908$ 1,906,44
8
$ 1,906,44
8
$
TOTAL BEGINNING FUND BALANCE 6,043,91
6
$ 6,991,61
4
$ 9,438,032$
TOTAL REVENUES 38,139,287 41,933,235 16,551,612
TOTAL EXPENDITURES 37,191,59
0
39,486,81
7
16,551,61
2
TOTAL ENDING FUND BALANCE 6,991,61
4
$ 9,438,032$ 9,438,032$
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ADOPTED
ACTUAL AMENDED BUDGET
2010 2011 2012
1988 CAPITAL IMPROVEMENTS
REVENUES: 2,258$ 2,675$ -$
EXPENDITURES: 26,464 167,945 -
REVENUES OVER (UNDER)
EXPENDITURES (24,206) (165,270) -
BEGINNING FUND BALANCE 1,051,977 1,027,771 862,501
ENDING FUND BALANCE 1,027,771$ 862,501$ 862,501$
1998 CAPITAL IMPROVEMENTS
REVENUES: 2,264$ 2,713$ -$
EXPENDITURES: 2,000 56,453 -
REVENUES OVER (UNDER)
EXPENDITURES 264 (53,740) -
BEGINNING FUND BALANCE 1,032,079 1,032,343 978,603
ENDING FUND BALANCE 1,032,343$ 978,603$ 978,603$
2009A PARKS AND RECREATION
REVENUES: 630$ 200$ -$
EXPENDITURES: 3,371,440 1,192,785
REVENUES OVER (UNDER)
EXPENDITURES (3,370,810) (1,192,584) -
BEGINNING FUND BALANCE 5,688,793 2,317,983 1,125,399
ENDING FUND BALANCE 2,317,983$ 1,125,399$ 1,125,399$
CAPITAL FUNDS
OPERATING BUDGET
2010 - 2012
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ADOPTED
ACTUAL AMENDED BUDGET
2010 2011 2012
CAPITAL FUNDS
OPERATING BUDGET
2010 - 2012
1995 CAPITAL IMPROVEMENTS
REVENUES: 37$ -$
EXPENDITURES: 19,781 9 -
REVENUES OVER (UNDER)
EXPENDITURES (19,744) (9) -
BEGINNING FUND BALANCE 19,752 9 0
ENDING FUND BALANCE 9$ 0$ 0$
SHORT TERM FINANCING
REVENUES: 3,877$ 4,605,174$ -$
EXPENDITURES: 1,322,514 1,322,220 -
REVENUES OVER (UNDER)
EXPENDITURES (1,318,637) 3,282,955 -
BEGINNING FUND BALANCE 2,985,128 1,666,491 4,949,446
ENDING FUND BALANCE 1,666,491$ 4,949,446$ 4,949,446$
2004 CAPITAL IMPROVEMENTS
REVENUES: 2,878$ 1,037$ -$
EXPENDITURES: 469,920 226,369 -
REVENUES OVER (UNDER)
EXPENDITURES (467,042) (225,332) -
BEGINNING FUND BALANCE 740,235 273,193 47,861
ENDING FUND BALANCE 273,193$ 47,861$ 47,861$
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ADOPTED
ACTUAL AMENDED BUDGET
2010 2011 2012
CAPITAL FUNDS
OPERATING BUDGET
2010 - 2012
LIBRARY IMPROVEMENT (2004)
REVENUES: 0$ -$ -$
EXPENDITURES: 202 -
REVENUES OVER (UNDER)
EXPENDITURES (202) - -
BEGINNING FUND BALANCE 202 (0) (0)
ENDING FUND BALANCE (0)$ (0)$ (0)$
2008 LIBRARY IMPROVEMENT BOND
REVENUES: 66,289$ 1,566$ -$
EXPENDITURES: 9,439,254 6,379,166 -
REVENUES OVER (UNDER)
EXPENDITURES (9,372,964) (6,377,601) -
BEGINNING FUND BALANCE 23,578,823 14,205,859 7,828,258
ENDING FUND BALANCE 14,205,859$ 7,828,258$ 7,828,258$
TOTAL CAPITAL BEGINNING BALANCE 35,096,989$ 20,523,648$ 15,792,067$
TOTAL REVENUES 78,234 4,613,365 -
TOTAL EXPENDITURES 14,651,574 9,344,946 -
TOTAL CAPITAL ENDING FUND BALANCE 20,523,648$ 15,792,067$ 15,792,067$
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ADOPTED
ACTUAL AMENDED BUDGET
2010 2011 2012
V
EHICLE STORAGE FACILITY
REVENUES: 1,199,238 1,187,770 1,326,100
EXPENDITURES: 1,348,552 1,184,063 1,326,100
REVENUES OVER (UNDER)
EXPENDITURES (149,314) 3,707 -
BEGINNING NET POSITION (733,919) (883,233) (879,526)
ENDING NET POSITION (883,233
)
$ (879,526
)
$ (879,526
)
$
WASTE DISPOSAL
REVENUES: 16,199,260$ 16,348,720$ 16,804,395$
EXPENDITURES: 16,489,863 17,814,540 17,154,395
REVENUES OVER (UNDER)
NET INCOME (LOSS) (290,603) (1,465,820) (350,000)
BEGINNING NET POSITION 14,998,316 14,707,713 13,241,893
ENDING NET POSITION 14,707,71
3
$ 13,241,89
3
$ 12,891,89
3
$
RIVER MARKET
REVENUES: 858,709$ 816,670$ 1,063,880$
EXPENDITURES: 977,074 916,942 1,164,180
REVENUES OVER (UNDER)
NET INCOME (LOSS) (118,365) (100,272) (100,300)
BEGINNING NET POSITION 2,537,875 2,419,510 2,319,238
ENDING NET POSITION 2,419,510$ 2,319,23
8
$ 2,218,93
8
$
ENTERPRISE FUNDS
OPERATING BUDGET
2010-2012
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ADOPTED
ACTUAL AMENDED BUDGET
2010 2011 2012
ENTERPRISE FUNDS
OPERATING BUDGET
2010-2012
ZOO
REVENUES: 5,176,348$ 4,884,579$ 6,344,304$
EXPENDITURES: 5,019,311 5,354,749 6,584,304
REVENUES OVER (UNDER)
NET INCOME (LOSS) 157,037 (470,170) (240,000)
BEGINNING NET POSITION 4,887,777 5,044,814 4,574,644
ENDING NET POSITION 5,044,814$ 4,574,644$ 4,334,644$
ZOO SPECIAL PROJECTS
REVENUES: 1,070,267$ (482,909)$ -$
EXPENDITURES: 195,650 225,700 -
REVENUES OVER (UNDER)
NET INCOME (LOSS) 874,617 (708,609) -
BEGINNING NET POSITION 1,136,828 2,011,445 1,302,836
ENDING NET POSITION 2,011,44
5
$ 1,302,836$ 1,302,836$
GOLF
REVENUES: 2,538,417$ 2,733,821$ 2,776,182$
EXPENDITURES: 2,893,907 2,826,136 2,870,282
REVENUES OVER (UNDER)
EXPENDITURES (355,490) (92,315) (94,100)
BEGINNING NET POSITION (1,534,833) (1,890,323) (1,982,638)
ENDING NET POSITION (1,890,323
)
$ (1,982,638
)
$ (2,076,738
)
$
69
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ADOPTED
ACTUAL AMENDED BUDGET
2010 2011 2012
ENTERPRISE FUNDS
OPERATING BUDGET
2010-2012
JIM DAILEY FITNESS & AQUATIC CENTER
REVENUES: 1,252,199$ 1,097,994$ 1,112,146$
EXPENDITURES: 1,384,195 1,334,126 1,350,071
REVENUES OVER (UNDER)
NET INCOME (LOSS) (131,996) (236,132) (237,925)
BEGINNING NET POSITION 3,372,823 3,240,827 3,004,695
ENDING NET POSITION 3,240,827$ 3,004,69
5
$ 2,766,770$
PARKING GARAGE
S
REVENUES: 1,848,228$ 1,800,383$ 1,856,000$
EXPENDITURES: 1,786,352 1,953,900 2,043,861
REVENUES OVER (UNDER)
NET INCOME (LOSS) 61,876 (153,517) (187,861)
BEGINNING NET POSITION 96,374 158,250 4,733
ENDING NET POSITION 158,250$ 4,733$ (183,128
)
$
70
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ADOPTED
ACTUAL AMENDED BUDGET
2010 2011 2012
ENTERPRISE FUNDS
OPERATING BUDGET
2010-2012
RECREATION SERVICES
REVENUES: 641,895$ 803,068$ -$
EXPENDITURES: 913,050 1,272,774 -
REVENUES OVER (UNDER)
EXPENDITURES (271,154) (469,706) -
BEGINNING NET POSITION 1,499,768 1,228,614 758,907
ENDING NET POSITION 1,228,614$ 758,907$ 758,907$
TOTAL ENTERPRISE BEGINNING NET POSITION 26,261,00
9
$ 26,037,61
6
$ 22,344,78
2
$
TOTAL REVENUES 30,784,561 29,190,09
6
31,283,00
7
TOTAL EXPENDITURES 31,007,95
4
32,882,93
0
32,493,19
3
TOTAL ENTERPRISE ENDING NET POSITION 26,037,61
6
$ 22,344,78
2
$ 21,134,59
6
$
71
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ADOPTED
ACTUAL AMENDED BUDGET
2010 2011 2012
FLEET INTERNAL SERVICE -
REVENUES: 9,666,219$ 10,403,932$ 11,667,454$
EXPENDITURES: 9,528,597 10,888,935 11,667,454
REVENUES OVER (UNDER)
EXPENDITURES 137,622 (485,003) -
BEGINNING NET POSITION 2,869,071 3,006,693 2,521,690
ENDING NET POSITION 3,006,693$ 2,521,690$ 2,521,690$
FLEET INTERNAL SERVICE FUND
OPERATING BUDGET
2010 - 2012
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ADOPTED
ACTUAL AMENDED BUDGET
2010 2011 2012
+
POLICE PENSION & RELIEF FUND
ADDITIONS: 10,114,578$ 5,564,747$ -$
DEDUCTIONS: 9,463,813 10,061,412 -
NET INCREASE (DECREASE) 650,765 (4,496,664) -
NET POSITION HELD IN TRUST, BEGINNING 52,308,765 52,959,530 48,462,865
NET POSITION HELD IN TRUST, ENDIN
G
52,959,53
0
$ 48,462,86
5
$ 48,462,86
5
$
FIRE PENSION & RELIEF FUND
ADDITIONS: 11,446,041$ 3,891,092$ -$
DEDUCTIONS: 10,877,571 10,678,773 -
NET INCREASE (DECREASE) 568,470 (6,787,681) -
NET POSITION HELD IN TRUST, BEGINNING 76,580,749 77,149,219 70,361,538
NET POSITION HELD IN TRUST, ENDIN
G
77,149,21
9
$ 70,361,53
8
$ 70,361,53
8
$
NON-UNIFORM DEFINED BENEFIT FUN
D
ADDITIONS: 2,368,275$ 2,342,569$ -$
DEDUCTIONS: 1,423,559 1,621,312 -
NET INCREASE (DECREASE) 944,716 721,257 -
NET POSITION HELD IN TRUST, BEGINNING 7,492,906 8,437,622 9,158,879
NET POSITION HELD IN TRUST, ENDIN
G
8,437,622$ 9,158,87
9
$ 9,158,87
9
$
FIDUCIARY FUNDS
OPERATING BUDGET
2010 - 2012
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ADOPTED
ACTUAL AMENDED BUDGET
2010 2011 2012
FIDUCIARY FUNDS
OPERATING BUDGET
2010 - 2012
NON-UNIFORM DEFINED CONTRIBUTIO
N
ADDITIONS: 5,381,091$ 2,626,225$ -$
DEDUCTIONS: 2,084,574 3,922,461 -
NET INCREASE (DECREASE) 3,296,517 (1,296,236) -
NET POSITION HELD IN TRUST, BEGINNING 33,309,255 36,605,771 35,309,535
NET POSITION HELD IN TRUST, ENDIN
G
36,605,771$ 35,309,53
5
$ 35,309,53
5
$
401 (A) PENSION FUND
ADDITIONS: 1,292,391$ 445,348$ -$
DEDUCTIONS: 105,347 7,998 -
NET INCREASE (DECREASE) 1,187,044 437,350 -
NET POSITION HELD IN TRUST, BEGINNING 5,409,400 6,596,444 7,033,794
NET POSITION HELD IN TRUST, ENDIN
G
6,596,44
4
$ 7,033,79
4
$ 7,033,79
4
$
HEALTH MANAGEMENT TRUST FUN
D
ADDITIONS: 104,681$ 41,674$ -$
DEDUCTIONS: 13,564 15,247 -
NET INCREASE (DECREASE) 91,117 26,428 -
NET POSITION HELD IN TRUST, BEGINNING 1,418,340 1,509,457 1,535,885
NET POSITION HELD IN TRUST, ENDIN
G
1,509,45
7
$ 1,535,88
5
$ 1,535,88
5
$
TOTAL NET POSITION BEGINNIN
G
176,519,41
5
$ 183,258,04
3
$ 171,862,49
6
$
TOTAL ADDITION
S
30,707,05
7
14,911,65
6
-
TOTAL DEDUCTION
S
23,968,42
8
26,307,20
2
-
TOTAL NET POSITION ENDIN
G
183,258,04
3
$ 171,862,49
6
$ 171,862,49
6
$
74
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ADOPTED
ACTUAL AMENDED BUDGET
2010 2011 2012
2002 CIP JUNIOR LIEN BONDS
REVENUE: 315,838$ 317,004$ -$
EXPENDITURES: 316,798 318,198 -
NET INCREASE (DECREASE) (959) (1,193) -
BEGINNING FUND BALANCE 22,942 21,983 20,790
ENDING FUND BALANCE 21,983$ 20,790$ 20,790$
2004 IMPROVEMENT BONDS DEBT SERVICE
REVENUE: 11,211,703$ 11,602,261$ -$
EXPENDITURES: 11,067,833 11,137,925 -
NET INCREASE (DECREASE) 143,871 464,336 -
BEGINNING FUND BALANCE 11,127,196 11,271,067 11,735,403
ENDING FUND BALANCE 11,271,06
7
$ 11,735,40
3
$ 11,735,40
3
$
2004 LIBRARY IMP. BONDS DEBT SERVICE
REVENUE: 3,393,839$ 3,511,551$ -$
EXPENDITURES: 3,411,844 3,347,369 -
NET INCREASE (DECREASE) (18,005) 164,182 -
BEGINNING FUND BALANCE 2,094,191 2,076,186 2,240,369
ENDING FUND BALANCE 2,076,186$ 2,240,36
9
$ 2,240,36
9
$
DEBT SERVICE FUNDS
OPERATING BUDGET
2010 - 2012
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ADOPTED
ACTUAL AMENDED BUDGET
2010 2011 2012
DEBT SERVICE FUNDS
OPERATING BUDGET
2010 - 2012
2008 LIBRARY IMPROVEMENT BOND
REVENUE: 3,365,060$ 4,114,257$ -$
EXPENDITURES: 2,695,033 2,475,345 -
NET INCREASE (DECREASE) 670,028 1,638,912 -
BEGINNING FUND BALANCE 2,598,841 3,268,869 4,907,781
ENDING FUND BALANCE 3,268,86
9
$ 4,907,781$ 4,907,781$
2007 CAPITAL IMP. REVENUE REFUNDING BON
D
REVENUE: 1,442,380$ 1,443,679$ -$
EXPENDITURES: 1,440,738 1,443,138 -
NET INCREASE (DECREASE) 1,643 542 -
BEGINNING FUND BALANCE 17,510 19,153 19,694
ENDING FUND BALANCE 19,153$ 19,694$ 19,694$
2009 PARKS & REC CAPITAL IMPROVEMENT BON
D
REVENUE: 675,477$ 511,270$ -$
EXPENDITURES: 695,264 506,132 -
NET INCREASE (DECREASE) (19,786) 5,138 -
BEGINNING FUND BALANCE 732,380 712,594 717,732
ENDING FUND BALANCE 712,594$ 717,732$ 717,732$
76
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ADOPTED
ACTUAL AMENDED BUDGET
2010 2011 2012
DEBT SERVICE FUNDS
OPERATING BUDGET
2010 - 2012
TOTAL BEGINNING FUND BALANCE 16,593,06
0
$ 17,369,85
2
$ 19,641,76
9
$
TOTAL REVENUES 20,404,29
9
21,500,02
2
-
TOTAL EXPENDITURES 19,627,50
7
19,228,10
6
-
TOTAL ENDING FUND BALANCE 17,369,85
2
$ 19,641,76
9
$ 19,641,76
9
$
77
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City of Little Rock, Arkansas 2012 Operating Budget
2012 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 2012 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 2012 General Fund budget is $1,586,000 or 1% of estimated
revenue.
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.
Citizen demand for services has outpaced revenue growth in the last few years.
As featured on the cover of this 2012 Budget Document, on September 13, 2011,
the citizens of Little Rock approved a one (1)-cent sales tax increase 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 is effective 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
tax. These expenses are phased into the five year forecast based on the
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City of Little Rock, Arkansas 2012 Operating Budget
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 all
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 2012 – 2016. The
forecast for 2012 – 2016 is a planning tool used for the projections. The Mayor
and Board of Directors have only approved the 2012 budget. However, the
Board is committed to providing financial stability in order to maintain critical
programs.
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FY12 FY13 FY14 FY15 FY16
Adopted
Projected Projected Projected Projected
General Fund
Beginning Fund Balance $22,866,080 $22,866,080 $25,030,383 $25,861,415 $27,079,741
Plus: Est. Revenue 158,559,815 162,523,810 166,586,906 170,751,578 175,020,368
Less: Est. Expenses
General Administrative 21,821,608 22,258,040 22,703,201 23,157,265 23,620,410
Board of Directors 236,721 241,455 246,285 251,210 256,234
Community Programs 375,610 383,122 390,785 398,600 406,572
City Attorney 1,620,798 1,653,214 1,686,278 1,720,004 1,754,404
District Court - First Division 1,358,190 1,385,354 1,413,061 1,441,322 1,470,149
District Court - Second Division 1,187,972 1,211,731 1,235,966 1,260,685 1,285,899
District Court - Third Division 546,736 557,671 568,824 580,201 591,805
Finance 2,753,231 2,808,296 2,864,462 2,921,751 2,980,186
Human Resources 1,494,036 1,523,917 1,554,395 1,585,483 1,617,193
Information Technology 4,140,165 4,222,968 4,307,428 4,393,576 4,481,448
Planning and Development 2,392,680 2,440,534 2,489,344 2,539,131 2,589,914
Housing & Neighborhood Programs 4,678,013 4,771,573 4,867,005 4,964,345 5,063,632
Public Works 1,124,698 1,147,192 1,170,136 1,193,539 1,217,409
Parks & Recreation 8,528,829 8,699,406 8,873,394 9,050,862 9,231,879
Fire ** 36,255,791 37,246,672 39,883,510 40,840,714 41,820,891
Police 55,007,824 56,817,980 58,181,612 59,577,971 61,007,842
Vacancy Reductions (3,500,000) (3,500,000) (3,500,000) (3,500,000) (3,500,000)
Transfers Out 18,536,913
16,490,382 16,820,190 17,156,593 17,499,725
158,559,815 160,359,507 165,755,874 169,533,252 173,395,592
Ending Fund Balance * $22,866,080 $25,030,383 $25,861,415 $27,079,741 $28,704,518
Reserve Requirement
(10% of Revenues) $15,855,982
$16,252,381 $16,658,691 $17,075,158 $17,502,037
* Ending Fund Balance includes restricted reserves of $9,418,000 in 2012.
** Includes the addition of 24 fire fighters in 2014 with the opening of the Southwest Little Rock Fire Station
Street Fund
Beginning Balance $2,666,905 $2,666,905 $2,835,731 $3,007,934 $3,183,581
Plus: Est. Revenue 16,551,612 16,882,644 17,220,297 17,564,703 17,915,997
Less: Est. Expenses 16,551,612
16,713,818 17,048,094 17,389,056 17,736,837
Ending Balance $2,666,905 $2,835,731 $3,007,934 $3,183,581 $3,362,741
Reserve Requirement
(10% of revenue) $1,655,161
$1,688,264 $1,722,030 $1,756,470 $1,791,600
Fleet Fund
Beginning Net Position $2,521,690 $2,521,690 $2,640,698 $2,762,086 $2,885,902
Plus: Est. Revenue 11,667,454 11,900,803 12,138,819 12,381,596 12,629,227
Less: Est. Expenses 11,667,454
11,781,795 12,017,431 12,257,780 12,502,935
Ending Net Position $2,521,690 $2,640,698 $2,762,086 $2,885,902 $3,012,194
Reserve Requirement
(10% of revenues) $1,166,745
$1,190,080 $1,213,882 $1,238,160 $1,262,923
2012-2016 FORECAS
T
CITY OF LITTLE ROCK
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FY12 FY13 FY14 FY15 FY16
Adopted
Projected Projected Projected Projected
2012-2016 FORECAS
T
CITY OF LITTLE ROCK
Vehicle Storage Facility
Beginning Net Position ($879,526) ($879,526) ($866,000) ($852,203) ($838,130)
Plus: Est. Revenue 1,326,100 1,352,622 1,379,674 1,407,268 1,435,413
Less: Est. Expenses 1,326,100
1,339,096 1,365,878 1,393,195 1,421,059
Ending Net Position ($879,526) ($866,000) ($852,203) ($838,130) ($823,776)
Reserve Requirement
(10% of revenues) $132,610
$135,262 $137,967 $140,727 $143,541
Waste Disposal Fund
Beginning Net Position $13,241,893 $12,891,893 $13,063,298 $13,238,131 $13,416,460
Plus: Est. Revenue 16,804,395 17,140,483 17,483,293 17,832,958 18,189,618
Less: Est. Expenses 17,154,395
16,969,078 17,308,460 17,654,629 18,007,721
Ending Net Position $12,891,893 $13,063,298 $13,238,131 $13,416,460 $13,598,357
Reserve Requirement
(15% of revenues) $2,520,659
$2,571,072 $2,622,494 $2,674,944 $2,728,443
River Market Fund
Beginning Net Position $2,319,238 $2,218,938 $2,229,790 $2,240,858 $2,252,148
Plus: Est. Revenue 1,063,880 1,085,158 1,106,861 1,128,998 1,151,578
Less: Est. Expenses 1,164,180
1,074,306 1,095,792 1,117,708 1,140,062
Ending Net Position $2,218,938
$2,229,790 $2,240,858 $2,252,148 $2,263,664
Reserve Requirement
(10% of revenues) $106,388
$108,516 $110,686 $112,900 $115,158
Zoo Fund
Beginning Net Position $4,574,644 4,334,644$ 4,399,356$ 4,465,362$ 4,532,688$
Plus: Est. Revenue 6,344,304 6,471,190 6,600,614 6,732,626 6,867,279
Less: Est. Expenses 6,584,304
6,406,478 6,534,608 6,665,300 6,798,606
Ending Net Position $4,334,644
$4,399,356 $4,465,362 $4,532,688 $4,601,361
Reserve Requirement
(10% of Revenues) $634,430
$647,119 $660,061 $673,263 $686,728
Golf Fund
Beginning Net Position ($1,982,638) ($2,076,738) ($1,793,567) ($1,504,733) ($1,210,123)
Plus: Est. Revenue 2,776,182 2,831,706 2,888,340 2,946,107 3,005,029
Less: Est. Expenses 2,870,282
2,548,535 2,599,506 2,651,496 2,704,526
Ending Net Position ($2,076,738)
($1,793,567) ($1,504,733) ($1,210,123) ($909,620)
Reserve Requirement
(10% of revenues) $277,618
$283,171 $288,834 $294,611 $300,503
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FY12 FY13 FY14 FY15 FY16
Adopted
Projected Projected Projected Projected
2012-2016 FORECAS
T
CITY OF LITTLE ROCK
Jim Dailey Fitness & Aquatic Fund
Beginning Net Position $3,004,695 $2,766,770 $2,778,113 $2,789,684 $2,801,486
Plus: Est. Revenue 1,112,146 1,134,389 1,157,077 1,180,218 1,203,823
Less: Est. Expenses 1,350,071
1,123,045 1,145,506 1,168,416 1,191,784
Ending Net Position $2,766,770
$2,778,113 $2,789,684 $2,801,486 $2,813,525
Reserve Requirement
(10% of revenues) $111,215
$113,439 $115,708 $118,022 $120,382
Parking Garages
Beginning Net Position $4,733 ($183,129) $0 $0 $0
Plus: Est. Revenue 1,856,000 1,893,120 1,930,982 1,969,602 2,008,994
Less: Est. Expenses 2,043,861
1,709,992 1,930,982 1,969,602 2,008,994
Ending Net Position ($183,129) $0 $0 $0 $0
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Revenues
CITY OF LITTLE ROCK
2012 BUDGET SUMMARY
ALL FUNDS RESOURCES
$218,061,888
Street
Fund
7.59%
Fleet
Services
5.35%
Waste
Disposal
7.71%
General
Fund
72.71%
Parks
Enterprises
2.27%
Zoo
2.91%
Vehicle Storage
Facility
.61%
Parking
Garages
.85%
83
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2010 2011 2011 2012 Change from %
REVENUES: ACTUAL ADOPTED AMENDED ADOPTED 2011 Amended CHANGE
Property Taxes * $24,034,597 $17,245,148 $17,395,148 $17,648,900 $253,752 1.46%
Sales Tax 64,137,449 65,224,701 63,920,146 92,199,900 28,279,754 44.24%
Business Licenses 5,682,104 5,732,107 5,972,107 5,974,000 1,893 0.03%
Mixed Drinks 1,850,260 1,631,188 1,856,188 1,858,000 1,812 0.10%
Building, Related Permits 1,816,865 1,687,900 1,822,900 1,832,800 9,900 0.54%
Insurance Pension Turnback* 2,686,738 1,178,000 1,673,467 2,190,000 516,533 30.87%
Park Revenue 355,102 378,520 378,520 349,600 (28,920) -7.64%
Airport Reimbursement 2,741,508 2,778,210 2,778,210 2,957,300 179,090 6.45%
Salary Reimbursement 911 973,407 1,000,000 1,000,000 733,300 (266,700) -26.67%
Fines and Fees 3,629,273 3,578,220 3,318,220 3,409,700 91,480 2.76%
Utility Franchises 27,594,024 26,902,357 27,104,357 26,332,200 (772,157) -2.85%
Interest Earnings 20,234 11,300 11,300 25,000 13,700 121.24%
All Other 1,767,045 1,622,361 1,722,361 1,729,600 7,239 0.42%
Transfers In 3,854,875 3,401,406 3,401,406 1,319,515 (2,081,891) -61.21%
Carry-over* 2,000,000 ** 2,000,000 ** 0 (2,000,000) -100.00%
Total General Fund 141,143,481 134,371,418 134,354,330 158,559,815 24,205,485 18.02%
Other Budgeted Funds
Street 16,113,897 15,164,843 15,238,843 16,551,612 1,312,769 8.6%
Fleet Services 9,666,219 10,003,932 10,403,932 11,667,454 1,263,522 12.1%
Vehicle Storage Facility 1,199,238 1,187,770 1,187,770 1,326,100 138,330 11.6%
Waste Disposal 16,199,260 16,228,300 16,348,720 16,804,395 455,675 2.8%
River Market 858,709 816,670 816,670 1,063,880 247,210 30.3%
Zoo 5,176,348 4,764,579 4,884,579 6,344,304 1,459,725 29.9%
Golf 2,538,417 2,733,821 2,733,821 2,776,182 42,361 1.5%
Jim Dailey Fitness and Aquatic Center 1,252,199 1,097,994 1,097,994 1,112,146 14,152 1.3%
Parking Garages 1,848,228 1,800,383 1,800,383 1,856,000 55,617 3.1%
Total Other Budgeted Funds 54,852,514 53,798,292 54,512,712 59,502,073 4,989,361 9.2%
Total All Budgeted Funds $195,995,995 $188,169,710 $188,867,042 $218,061,888 $29,194,846 15.5%
* Actual includes Property Tax and Pension Turnback funds associated with the Police and Fire Pension.
** Carry-over represents the planned use of available fund balance.
CITY OF LITTLE ROCK
2012 OPERATING REVENUES
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$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
2010 2011 2012
Sales Taxes Utility Franchises
All Other Property Taxes
General Government
Summary of Revenues
2010-2012
85
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2010 2011 2012
A
CTUA
L
A
DOPTED
A
DOPTED
GENERAL FUND
PROPERTY TAX
Property Taxes 15,976,061$ 15,863,800$ 16,284,600$
Pension Property Taxes 6,788,010
Homestead Taxes 993,497 1,076,900 1,044,300
Act 9 Industry Payment 277,029 304,448 320,000
Total Property Taxes 24,034,597 17,245,148 17,648,900
SALES TAX
County Sales & Use Tax 38,380,269 39,035,350 38,241,500
City Sales Tax 22,666,916 23,382,000 50,869,700
State Tax Turnback 3,090,264 2,807,351 3,088,700
Total Sales Taxes 64,137,449 65,224,701 92,199,900
BUSINESS LICENSES
General Business Licenses 5,682,104 5,732,107 5,974,000
Mixed Drinks Licenses 1,850,260 1,631,188 1,858,000
Total Business Licenses 7,532,364 7,363,295 7,832,000
PERMITS
Building & Excavation Permits 1,016,461 890,000 1,021,000
Electrical Permits 246,312 260,000 263,000
Plumbing Permits 223,582 221,000 254,000
HVAC Permits 252,514 235,600 224,000
Wrecker Franchise 74,660 72,300 68,600
Burn Permits 3,336 9,000 2,200
Total Permits 1,816,865 1,687,900 1,832,800
INTERGOVERNMENTAL
Insurance Turnback 2,686,738 1,178,000 2,190,000
Total Intergovernmental 2,686,738 1,178,000 2,190,000
POLICE SERVICES
Police Report 286,192 270,000 380,000
False Alarm 68,498 90,000 40,000
Airport - Security Guards 1,656,795 1,728,560 1,769,700
Total Police Services 2,011,485 2,088,560 2,189,700
FIRE SERVICES
Fire Alarm Inspection 3,650 3,750 300
Airport-Fire Protection 1,084,713 1,049,650 1,187,600
Fire Training Academy 600
Total Fire Services 1,088,363 1,053,400 1,188,500
PARK REVENUE
SWLR Community Complex 86,190 92,000 88,000
Athletics Fees 99,450 110,000 93,800
Pavilion Rental 45,506 50,000 45,000
Community Center & Miscellaneous Fees 88,465 89,520 86,900
Admissions Revenue 23,604 27,000 24,600
Miscellaneous Revenue 11,887 10,000 11,300
Total Park Revenue 355,102 378,520 349,600
CITY OF LITTLE ROCK
2012 OPERATING REVENUE
86
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2010 2011 2012
A
CTUA
L
A
DOPTED
A
DOPTED
CITY OF LITTLE ROCK
2012 OPERATING REVENUE
MISCELLANEOUS SERVICES
Crossing Guards-LRSD Reimbursement 408,774 427,420 440,200
911 Services Reimbursement 973,407 1,000,000 733,300
Total Miscellaneous Services 1,382,181 1,427,420 1,173,500
FINES
Fines - Traffic 2,402,746 2,320,000 2,179,800
Fines - Criminal - Other 329,381 320,000 364,000
Probation Assessments 105,409 111,000 80,000
Additional Court Cost 18,523 18,500 18,500
Theft Diversion Class 900 1,500 500
Fines - Parking 251,090 260,000 260,000
Immobilization Fees 170
Fines - Child Passenger Protection 5,227 5,700 6,100
Fines - Environmental 42,733 61,000 34,000
Fines - Animal Control 274,714 270,000 278,000
Fines - Anger Management 170 150
Fines - Other (8,970)
Drunk-O-Meter 3,753 3,700 3,700
Total Fines 3,425,845 3,371,550 3,224,600
FEES
Rezoning Fees 63,438 52,000 56,500
Act 474 Admin Fees 3,011 2,700 3,600
Act 9 Admin Fees 2,010 4,600 4,600
Incident Report Fees 407 400 300
Civil Court Fees 69,507 68,000 74,500
Booking & Admin Fee -Pulaski County Jail 240 100
Education Training Fees 3,490 8,200
Community Service Fees 50,950 55,000 37,500
Miscellaneous Service Fees 11,645 15,000 8,000
Animal Services (1,270)
670 100
Total Fees 203,428 206,670 185,100
UTILITY FRANCHISE
Entergy 12,729,113 12,404,700 11,970,000
S W Bell 1,204,019 1,166,808 819,800
Local Landline Franchise Fees 233,037 227,084 220,300
Long Dist. Franchise Fees 991,159 1,040,000 959,700
Centerpoint Energy 4,092,240 3,800,000 3,625,000
Central Ark Water 3,129,191 3,075,000 3,385,000
LR Waste Water 4,024,700 4,047,000 4,100,000
Fiber Optics 1,077,497 1,074,600 1,232,000
Cable TV 1,867,102 1,825,000 1,775,000
Franchise Fee Contra (1,754,035) (1,757,835) (1,754,600)
Total Utility Franchises 27,594,024 26,902,357 26,332,200
INVESTMENT INCOME
Interest Income 21,747 11,300 25,000
Change in Market Value (1,513)
Total Investment Income 20,234 11,300 25,000
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2010 2011 2012
A
CTUA
L
A
DOPTED
A
DOPTED
CITY OF LITTLE ROCK
2012 OPERATING REVENUE
RENTS AND ROYALTIES
Tower Lease 274,044 237,400 270,000
Ground Leases 548 3,773 9,900
Amusement Park Leases 2,750 3,025 3,300
Total Rents and Royalties 277,343 244,198 283,200
MISCELLANEOUS INCOME
Other Reimbursement 3,370 7,000 6,500
Commission - Vending 634 2,200 1,000
Contributions/Donations 327,793 327,793 327,800
Miscellaneous Revenue 390,790 250,000 250,000
Total Miscellaneous Revenue 722,587 586,993 585,300
Transfers In 3,854,875 3,401,406 1,319,515
General Fund Carry-over From Operating Revenues
and Excess Vacancy Savings 2,000,000
TOTAL GENERAL FUND REVENU
E
141,143,481 134,371,418 158,559,815
STREET FUN
D
ST Homestead Tax 288,093 288,925 298,000
1/2 County Road Tax 4,633,015 4,586,288 4,742,000
State Gas Tax Turnback 9,260,451 9,052,000 9,770,794
Miscellaneous Grants 85,192
Street Repair Reimbursement 16,758 7,000 9,000
Insurance Reimbursement 49,893 15,000 15,000
Miscellaneous Income 924,098
Interest On Investments 1,272 1,000 1,000
Transfer In 855,125 1,214,630 1,715,818
TOTAL STREET FUN
D
16,113,897 15,164,843 16,551,612
FLEET INTERNAL SERVICE FUN
D
Fleet Labor 2,096,483 2,508,865 2,711,402
Fleet Management 656,246 766,791 817,027
Fuel Fees 2,168,728 2,422,878 3,516,580
Miscellaneous Sales 579,542 501,000 565,000
Motor Pool 8,000 5,800 5,585
Fleet Parts 3,001,647 2,879,750 2,998,860
Insurance Repairs 351,553 125,000 75,000
Fleet Sublets 801,402 776,378 978,000
Interest on Investments 2,618 1,500
Gain/Loss on Sale of Fixed Assets 15,970 -
TOTAL FLEET INTERNAL SERVICE FUN
D
9,666,219 10,003,932 11,667,454
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2010 2011 2012
A
CTUA
L
A
DOPTED
A
DOPTED
CITY OF LITTLE ROCK
2012 OPERATING REVENUE
V
EHICLE STORAGE FACILIT
Y
Licenses and Permits 20,990 20,500 20,500
Storage Fees 310,576 308,000 314,600
Wrecker Fees 330,653 335,000 337,000
Vehicle Auction Sales 419,553 400,000 530,000
Impound Administration Fees 87,422 89,000 89,000
Vehicle Storage Miscellaneous 19,241 14,000 14,000
Contributions/Donations 10,538 21,000 21,000
Sales Tax 265 270
TOTAL VEHICLE STORAGE FACILIT
Y
1,199,238 1,187,770 1,326,100
WASTE DISPOSAL ENTERPRISE FUN
D
Sanitation Fees 15,053,953 15,050,000 15,113,440
Landfill Fees 765,426 725,000 860,000
Methane Gas Revenue 156,827 225,000 200,000
Yard Waste Revenue 43,308 40,000 40,000
Compost Sale Revenue 99,193 100,000 100,000
Miscellaneous Revenue 14,575 79,100 5,000
Interest On Investments 10,461 9,200 5,715
Contributions/Donations 55,517
Transfers In - - 480,240
TOTAL WASTE DISPOSAL ENTERPRISE FUN
D
16,199,260 16,228,300 16,804,395
RIVER MARKET ENTERPRISE FUN
D
Admissions Revenue 66,205 50,670 102,500
Space Rental 283,690 260,000 379,000
Miscellaneous Fees 9,016 6,000 82,380
Contributions/Donations 250,000 250,000 250,000
Miscellaneous Revenue (202) -
Transfers In 250,000 250,000 250,000
TOTAL RIVERMARKET ENTERPRISE FUN
D
858,709 816,670 1,063,880
ZOO ENTERPRISE FUN
D
Membership 236,226 310,000 340,000
Zoo Admissions 1,472,308 1,566,125 1,650,000
Concessions 401,158 415,000 465,000
Token Sales 187,943 202,500 180,000
Education 32,713 35,000 55,000
Special Events 246,476 209,000 209,000
Zoo Rentals 15,862 20,000 10,000
Merchandise Sales 294,871 300,000 335,000
Miscellaneous 22,931 14,000 19,000
Contributions/Donations 585,806 12,900
Transfers 1,680,054 1,680,054 3,081,304
TOTAL ZOO ENTERPRISE FUN
D
5,176,348 4,764,579 6,344,304
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2010 2011 2012
A
CTUA
L
A
DOPTED
A
DOPTED
CITY OF LITTLE ROCK
2012 OPERATING REVENUE
GOLF ENTERPRISE FUN
D
Concessions Revenue 71,226 88,000 96,200
Green Fees 847,361 933,879 912,800
Equipment Rental 457,317 547,890 510,080
Merchandise Sales 74,187 81,000 88,500
Miscellaneous Revenue 11,574 5,800 4,000
Transfers 1,076,752 1,076,752 1,164,602
TOTAL GOLF ENTERPRISE FUN
D
2,538,417 2,733,321 2,776,182
JIM DAILEY FITNESS & AQUATIC CENTER ENTERPRISE FUN
D
Annual Fees 53,635 52,000 49,500
Monthly Membership 278,058 280,500 285,000
Daily Fees 108,729 110,000 112,000
Corporate Fees 241,497 242,000 231,500
Special Fees 43,923 4,700 6,800
Other 18,767 56,420 73,500
Interest Income 1,354 1,088 2,560
Contributions/Donations 154,950
Transfers 351,286 351,286 351,286
TOTAL JIM DAILEY FITNESS & AQUATIC CENTER 1,252,199 1,097,994 1,112,146
PARKING GARAGE
S
Business License - Auto/Truck 274,321 229,000 229,000
Street Repair Reimbursement 138,517 110,000 110,000
Parking Meters 523,005 520,000 520,000
Surface Lot Parking 97,883 88,683 88,680
Parking Deck Monthly 620,443 606,250 650,000
Parking Deck Daily 109,043 165,000 175,000
Parking Peabody 83,046 79,750 81,000
Interest on Investments 1,970 1,200 2,200
Miscellaneous Income - 500 120
TOTAL PARKING GARAGE
S
1,848,228 1,800,383 1,856,000
GRAND TOTAL ALL FUND
S
195,995,995$ 188,169,210$ 218,061,888$
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City of Little Rock, Arkansas 2012 Operating Budget
REVENUE TRENDS
OVERALL
The City’s General Fund revenues are primarily comprised of sales taxes,
property taxes, utility franchise fees, fines and fees and revenues from various
licenses. The City’s General Fund is heavily dependent on sales tax, which
comprises over 58% of the 2012 budget. The 2012 Operating Budget includes
an increase in sales tax of 41.92% over 2011 actual tax collections, which were
1.30% higher than the previous year. Little Rock citizens passed an additional
one (1)-cent local sales tax in September 2011 that goes into effect 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 with five-eighths
(5/8)-cent dedicated for ongoing operating expenses and three-eighths (3/8)-cent
dedicated to capital projects over a ten (10) year period. The revenue growth
reflected in the budget is entirely due to the five-eighths (5/8)-cent increase in the
sales tax for operations. While consumer confidence improved over the last
quarter of 2011, uncertainty continues to impact the economic recovery and
make revenue forecasting very difficult. Sales tax receipts in the last two months
of 2011 improved by 2.42% over the same period one year ago.
%
REVENUES CHANGE
2008 Operating Revenues 134.1
2009 Operating Revenues 137.4 2.46%
2010 Operating Revenues 131.1 -4.59%
2011 Operating Revenues 134.4 2.52%
2012 Operating Revenues 158.6 18.01%
Utility franchise fees and property taxes comprise approximately 16.6% of and
11.1% of 2012 General Fund budgeted revenues, respectively. Assessments of
real estate and personal property are levied in the current year and collectible in
the following year. An increase in used-car values and business inventories in
2011 led to an increase of 3.31% in the original charge for 2011 property taxes to
be collected in 2012. Overall, utility franchise revenues are expected to be below
2011 actual revenues by 3.82%. Only CenterPoint Energy, the gas utility, has an
increase in utility rates for customers living within the Little Rock city limits. The
average residential customer will experience an increase of 5.7% in their bills
from November 1, 2011 through March 31, 2012. Although no rate change is
currently scheduled, franchise payments from Entergy, the electric utility, are
expected to decline by approximately 6.5% due the return to normal weather
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City of Little Rock, Arkansas 2012 Operating Budget
patterns after an extremely hot and dry summer in 2011. In addition, Entergy
rates are impacted by the Federal Energy Regulatory Commission (FERC)
imposed payments which are passed directly to consumers. Entergy has applied
for an increase in rates beginning April 1, 2012 but no decision will be made until
late in the first quarter of 2012. Weather plays a significant role in the annual
franchise fee revenues from Entergy, CenterPoint, and Central Arkansas Water.
Water conservation technology continues to improve and reduce the number of
annual gallons used. Franchise fee revenue from Central Arkansas Water and
WasteWater Utility are expected to remain flat, primarily due to the decline in
gallons consumed per household. The WasteWater Utility Board has announced
a desire to increase rates in 2012 and to levy impact fees to fund sewer
infrastructure improvements. A decision regarding the amount and timing of rate
adjustments had not been made at the time the budget was adopted. Therefore,
no increase in franchise fee revenues for this utility was included in the 2012
revenue forecast. Over the last several years, long distance and local landline
franchise fees have been in decline with increased competition from wireless
carriers. These revenues were relatively flat for 2011 and are expected to
decrease slightly in 2012. Fiber Optic revenue increased almost 19% from 2010,
primarily due to an increase in subscribers for AT&T U-Verse. Both AT&T U-
Verse and Comcast Cable have increased fees in response to the demand for
more channel selection from viewers. Licenses and permits comprise
approximately 6% of General Fund Revenues. Business licenses are expected
to remain at existing levels in 2012. Building permit revenue associated with
construction projects increased approximately 19% from the depressed levels in
2010. Business construction activity is projected to remain at 2011 levels in
2012.
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 most
that a residential property appraisal can be increased annually is 5%,
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 (one mill equals $1 in tax per
$1,000 in assessed value), are passed by local governments and certified
to the County Tax Collector, who bills and collects the tax.
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City of Little Rock, Arkansas 2012 Operating Budget
A Little Rock resident living in the Little Rock School District is charged a
millage rate of 70.50.
Taxes are remitted to the City monthly by the Pulaski County Treasurer as
payments are received throughout the year.
The General Assembly exercised its homestead exemption authority with the
passage of Act 1598 of 2001 (Amendment 79), which provides that, 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. A
homestead is a property which is an owner’s principal place of residence.
The City recently received notice of the original charge for 2011 property taxes to
be collected in 2012 which reflects an overall increase of 3.31%. The Pulaski
County Treasurer’s Office is experiencing a collection rate of approximately 97%,
which includes collection of delinquent taxes from previous years.
The City tax levies the past two years have been as follows:
2010 Payable 2011 2011 Payable 2012
General Operation 5.00 5.00
Bond Retirement 3.30 3.30
Library System 5.30 5.30
Police & Firemen’s Pension 2.00 2.00
15.60 15.60
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 2012 Budget anticipates $5.04 million in property tax
collections from this tax.
In addition to the City millage of 15.60 and the County road millage of 2.90, a
Little Rock property owner’s tax assessment for 2011 also includes 5.60 mills
levied by the County and 46.40 mills levied by the Little Rock School District.
The total millage for a Little Rock property owner is 70.50 for 2011 property taxes
payable in 2012.
The general operations 5.0 mill levy is the maximum rate allowable under state
law for general city operations. Property taxes for 2011 increased 4.52% over
2010 receipts. The majority of the increase was associated with Act 9 revenues,
which are included in this category and represent payments in lieu of property
taxes paid by certain industrial companies. LM Wind Power Blades, Inc., Novus,
Sage V Foods and Welspun were companies which began Act 9 payments in
2011.
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City of Little Rock, Arkansas 2012 Operating Budget
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 one percent tax sales and use tax. The
projected revenue for 2012 from this tax is $38,241,500. 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 $3,330,000 annually. In 2011, the county sales tax revenues
increased only 0.54% from one year ago and were still 1.73% below the 2008
level of $39,268,491. Due to the volatility of growth in the county sales tax
experienced from month to month in 2011 in comparison to the previous year,
there was no growth projected for 2012. 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.
LOCAL SALES TAX
Historically, the City of Little Rock has levied one of the lowest sales tax rates in
the State of Arkansas at 0.5%. The City currently receives annual revenues of
approximately $23,275,000 from the half penny local sales tax that was the result
of a 1993 special election. There is a two-month delay from the time the actual
sales tax revenues are collected by the businesses and remitted to the State
which disburses this amount to the City, less a 3% administrative charge. City
sales tax revenues were 2.69% higher in 2011 than a year ago, but still trailed
2008 levels by 1.9%. In September 2011, voters approved an overall one (1)-
cent sales tax increase which was comprised of a permanent five-eighths (5/8)-
cent dedicated for ongoing operating expenses and a temporary three-eighths
(3/8)-cent dedicated to capital projects over a ten (10) year period. The new tax
goes into effect on January 1, 2012. In addition to the existing half-cent sales
tax, the new five-eighths (5/8)-cent tax dedicated to ongoing operations is
projected to generate an additional $27,594,000 in revenue in 2012. The three-
eighths (3/8)-cent tax for capital projects is expected to generate approximately
$195.8 million over the ten (10) year period for capital projects. The three-
eighths (3/8)-cent tax revenue is not reflected in General Fund revenues.
Instead, it is reported in a new capital projects fund.
STATE TAX TURNBACK
The State General Assembly, through the Office of Budget, appropriates and
then distributes an amount for turnback to municipalities. The turnback funds are
not based on the state economy. An appropriation is made every July 1st by the
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City of Little Rock, Arkansas 2012 Operating Budget
State’s Office of the Budget and distributed based on population. There are no
scheduled reductions in the turnback appropriations for 2012, remaining at
$16.00 per capita. For 2012 and 2013, the Arkansas State Legislature
appropriated $4,000,000 to be disbursed to county and local governments from
the surplus of the Property Tax Relief Fund. Little Rock will receive $411,894 in
January 2012. The turnback funds should result in approximately $3.1 million
dollars a year.
Sales Tax
$9,000,000
$18,000,000
$27,000,000
$36,000,000
$45,000,000
$54,000,000
Budget Budget Budget
Actual Adopted Adopted
2010 2011 2012
County Sales Tax
City Sales Tax
State Tax Turnback
Month
January 35,123,247$ 34,674,109$ 35,666,555$ 35,450,558 70,789,802$ 70,124,667$ 27,640$ 60,271$
February 42,235,810 41,006,941 42,753,266 42,937,896 84,989,076 83,944,837 34,351 59,485
March 33,606,662 33,818,100 34,174,199 34,971,579 67,780,861 68,789,679 35,321 76,714
April 35,244,719 34,427,642 35,257,864 36,042,561 70,502,583 70,470,203 23,355 78,790
May 39,976,322 38,636,249 40,107,935 38,049,255 80,084,257 76,685,474 9,286 49,923
June 37,765,150 37,512,337 37,056,613 38,602,771 74,821,763 76,115,108 25,409 63,686
July 37,831,729 36,860,261 36,634,846 37,359,158 74,466,575 74,219,419 14,470 52,871
August 40,620,093 37,616,032 40,946,986 39,562,409 81,567,079 77,178,441 22,415 58,934
September 39,596,088 36,434,296 39,895,996 38,376,562 79,492,084 74,810,859 14,702 51,022
October 39,356,921 38,103,354 40,657,852 40,272,526 80,014,773 78,375,881 24,979 66,397
November 39,576,203 36,678,265 40,429,029 39,093,545 80,005,232 75,771,810 13,218 44,867
December 39,176,568 35,853,352 38,869,097 37,083,830 78,045,665 72,937,182 25,669 73,441
Total
460,109,512$ 441,620,938$ 462,450,238$ 457,802,650$ 922,559,749$
899,423,560$
270,815$ 736,401$
Averages 38,342,459$ 36,801,745$ 38,537,520$ 38,150,221$ 76,879,979$ 74,951,963$ 22,568$ 61,367$
Municipal Sles and Use Tax has an effect on local sles tax rev enues 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
Local Option Sales and Use Tax in Arkansas
Sale and Use Tax Year-to-Date 2011 with 2010 Comparison (shaded gray)
Municipal Tax County Tax Total Tax Interest
INTEREST EARNINGS
Interest earned on the investments and bank deposits of the General Fund and
certain bond retirement funds can legally be utilized for any municipal purpose.
The Federal Funds rate has decreased from 4.25% in 2008 to a range of
between 0.00% and 0.25% and has remained at historically low levels since
January 1, 2009. The Discount Rate is currently 0.75%. Although the fixed-
income investments held in the short-term operating fund continue to yield at
historical lows, they are backed by the U.S. government and are among the
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City of Little Rock, Arkansas 2012 Operating Budget
safest securities in the world. While interest rates are expected to remain at
historically low levels, interest earnings are projected to increase in 2012 due to
the projected increase in average fund balances associated with revenues from
the new sales tax, effective January 1, 2012.
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 which pay a franchise fee 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 Arkla 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
Certain franchise fee revenues, such as Entergy, CenterPoint and Central
Arkansas Water are directly impacted by the weather. The summers of 2010 and
2011 have been among the hottest and driest on record, however, per capita
consumption of water continues to decrease due to water saving appliances and
conservation measures. Central Arkansas Water increased rates in 2011,
resulting in a 6.9% increase in franchise fees over the previous year. Domestic
rates increased by 5.3%, commercial rates by 3.9%, and industrial rates by 4.4%.
Central Arkansas Water revenues should remain at the 2011 levels with no
scheduled rate increases for 2012.
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Little Rock Wastewater has not announced any rate increases for 2012 and
recommended the forecast of franchise fee revenues at 2011 levels. The
Wastewater Board is determining whether or not to raise rates sometime during
2012, which could include impact fees to build a reserve for future growth and for
other sewer infrastructure requirements. The Wastewater Utility is considering
levying fees more in accordance with usage. In November 2011, Little Rock
Wastewater opened a new treatment facility.
SWBell (AT&T) franchise payments for local service have declined sharply since
the 1998 peak of $2.6 million. 2012 AT&T franchise payments declined 19.56%
from the previous year. 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. This decline is anticipated in
revenues from other local land line providers and from long distance services.
The 2012 budget anticipates a reduction of 7.5% for telecommunications.
Entergy reported relatively flat usage and revenues for 2011 in comparison to the
previous year. Electrical usage is projected to decline in 2012 resulting in a
projected decrease in revenues of 6.5%. Entergy uses natural gas to fuel some
of its plants. Natural gas prices are still at historical lows because of increased
inventories. Factors that impact Entergy franchise fees include the Federal
Energy Regulatory Commission (FERC) imposed payment, which will not be
available until May before it is effective July 1
st
. This number is derived from
actual production costs of all the Entergy operating companies. Entergy has
announced through the Arkansas Public Service Commission (PSC) a request to
recover $156 million through an increased FERC rider. The utility is proposing
raising rates $1.70 on an average $100 monthly electricity bill beginning April 1,
2012 through December 2013. Although the utility cannot provide reliable
estimates of costs, the utility foresees no change in the ECR imposed rider for
2012. All FERC imposed payments will be eliminated from bills by July 1, 2014.
Utility Franchise
$6,400,000
$12,800,000
9,200,000
5,600,000
2,000,000
Budget Budget Budget
Actual Adopted Adopted
2010 2011 2012
$1
$2
$3
Utility Franchise
CenterPoint
Energy Arkla
payments are
also directly
affected by the
weather. The
decrease in
natural gas
prices since 2009
has resulted in
reduced gas
franchise
revenues of
approximately
10% from 2010
Actuals. Usage declined very slightly at 0.88% from the previous year. 2012
CenterPoint franchise fees have been conservatively projected by the Utility to
decrease minimally from 2011 actual revenues based on slightly lower gas prices
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City of Little Rock, Arkansas 2012 Operating Budget
and declining volume usage. CenterPoint Energy has officially increased utility
franchise rates for their customers living within the Little Rock city limits. The
average residential customer will experience an increase of 5.7% in their bills
from November 1, 2011 through March 31, 2012. CenterPoint stores natural gas
for the next heating season. The cost of natural gas makes up between 70% and
80% of the typical bill.
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. Fiber Optics franchise revenues
increased approximately 19% over 2010 levels and are expected to remain at
that level in 2012. AT&T’s rate of growth is expected to remain steady with no
scheduled rate increases announced. Comcast has projected 2012 revenues to
decrease 3.3% because of reduced market share. Cell phone and Internet
usage is not included in the franchise agreement.
Overall 2011 franchise fee revenues were 0.78% lower than 2010. Franchise fee
revenues for fiscal year 2012 are forecast to be 3.82% below 2011 actual
receipts and 2.12% below the original 2011 budget.
SW Bell (AT&T) 0%
Energy 0%
Long Distance 0%
Local Land Lines 0%
CenterPoint 5.7% in residential bills from November 1, 2011 - March 31. 2012
Central AR Water 0%
Fiber Optics 0%
Waste Water Utility 0%
Utility Rate Increase
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. 2011 business licenses increased 5.22% due to
aggressive collections of delinquent accounts and to the tremendous response to
the Rental Registration Program which resulted in the addition of over 10,000
new residential units and new assessments of approximately $200,000. 2012
revenues are expected to remain at 2011 levels. As an ongoing process, in 2012
a business license committee will review the fairness and equity of the business
license fee structure and provide recommendations to the Board of Directors.
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City of Little Rock, Arkansas 2012 Operating Budget
MIXED DRINK PERMITS
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. 2011 mixed drink revenue was slightly lower
than record 2010 revenues, but remained strong at 12.50% above a conservative
original budget. 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 2012 Budget anticipates an increase of 1.3% over
2011 revenues.
BUILDING AND RELATED PERMITS
Actual revenues from building and related permits rebounded slightly in 2011
following a steep decline the last couple of years. 2011 building permits began to
increase with construction activity in the 2
nd
and 3
rd
quarters, including but not
limited to Verizon Corp., Little Rock Airport expansion, Park Avenue (Mid-Town),
Horace Mann School, St. Vincent Hospital and Autumn Woods Apartments. The
2012 Budget anticipates that building and related permits will remain at 2011
improved levels. Interest rates remain historically low and consumer confidence
has hit a 12-month high.
FINES
Fines and related fees comprise 2.15% of the 2012 budget. Traffic fines annually
contribute approximately $2,000,000.and have historically been a consistent
revenue source for the General Fund. However, 2011 traffic fine revenue was
15.32% below 2010 revenue. The number of traffic tickets issued decreased
29% from the same period a year ago. This was due in part to the extreme
weather events in the early part of the year which reduced the number of
available enforcement days. In addition, the vacant positions in the Police
Department resulted in fewer officers available to work traffic, and there was a
decrease in the number of traffic accidents reported in 2011. Traffic fine revenue
is expected to increase slightly with the passage of the sales tax increase which
will provide funding to fill forty (40) vacant positions and add twelve (12) new
uniform positions in the Police Department. Parking fines increased
approximately 3% in 2011 from 2010 totals. Parking Enforcement has recently
contracted with a new vendor that is expected to reduce overhead cost and
increase collection. In addition, Parking Enforcement has partnered with the
Little Rock Convention Visitor Bureau to install eight (8) new solar meters at the
Rivermarket that are expected to generate additional meter revenue. Overall,
District Court revenues across the State of Arkansas have experienced declines,
primarily related to a drop in the number of citations filed in the courts and an
increase in the number of unserved warrants, due in many cases, to a decline in
resources available to local law enforcement. The decline in court revenues has
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City of Little Rock, Arkansas 2012 Operating Budget
significantly decreased revenues available to the Administrative Office of the
Courts.
PARK REVENUE
General Fund park revenues consist of tennis fees, community center fees and
athletics fees. Overall general fund park revenues decreased 2.77% form one
year ago, primarily due to a reduction in the revenues of the Summer Softball
Program. There were more reservations for City owned park facilities in 2011
than in previous years. Weather also plays a crucial role in determining trends at
the City’s park venues.
AIRPORT REIMBURSEMENT
The Little Rock National Airport reimburses the City for expenses related to
police and fire protection. As a result of September 11, 2001, increased police
security has been required at the airport, resulting in increased reimbursements.
In 2011, both airport police and airport fire reimbursements remained steady at
$1.68 million and $1.16 million, respectively. Staffing levels for 2012 are
expected to be consistent with 2011.
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 all the tax on gasoline consumption goes to
municipal aid or gas turnback. 2011 revenues were 1.61% lower than 2010
resulting from lower usage. Currently, approximately $600,000 of the turnback is
from the natural gas severance tax. The State Highway Department’s Gas Tax
Turnback projection for 2012 is $9,770,000.
Street Fund
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
Budget Budget Budget
Actual Adopted Adopted
2010 2011 2012
1/2 County Road Tax
Gas Turnback
100
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City of Little Rock, Arkansas 2012 Operating Budget
BOND & INTEREST FUND
Revenues from this fund are used 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 millage, along with the Homestead Credit, which is monies generated from a
state-wide half-cent sales tax, produced approximately $11.6 million toward 2011
debt service on the outstanding bonds. Excess tax collections in 2011 and the
beginning of 2012 will be used to call an additional $6.6 million of outstanding
bonds on April 1, 2012. The bond issue is expected to be redeemed in full by
April 1, 2013.
WASTE DISPOSAL
In 2011, private haulers increased overall landfill volume. Waste Disposal
recently entered into disposal contracts with the City of North Little Rock and the
City of Maumelle which are expected to generate additional revenues of
$147,000 in the startup year of 2012 and $220,000 annually thereafter. The
monthly residential rate for sanitation pickup remained at $20.99. There are
approximately 57,700 households currently receiving garbage collection services.
In addition, approximately 280 commercial vendors pay a rate of $33.37 a month
for Waste Disposal services. Sanitation fees are expected to generate
approximately $15.11 million dollars in 2012. Landfill fees are expected to
generate approximately $860,000. Methane gas captured by the landfill is piped
to a vendor and is expected to generate $200,000 in annual revenues.
Waste Fund
$0
$4,000,000
$8,000,000
$12,000,000
$16,000,000
Budget Budget Budget
Actual Adopted Adopted
2010 2011 2012
Sanitation Fees
Landfill Fees
ZOO
The opening of the Laura P. Nichols Penguin Pointe Exhibit on March 5, 2011
was the catalyst for increased attendance at the Zoo, which experienced a 17%
increase in visitors from the previous year.
101
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City of Little Rock, Arkansas 2012 Operating Budget
The number of visitors to the Zoo was the highest in ten (10) years and resulted
in increased revenue. In addition, annual membership sales increased by 1,176
households from the previous year. The Zoo receives approximately one third of
its funding from the City with the remainder coming from self-generated revenue
and private donations. Excluding transfers in and contributed capital, 2011 Zoo
revenues were approximately $486,700 over 2010. Admissions and annual
memberships are the largest revenue sources for the Zoo and increased over
24% or $410,000 from one year ago. In addition, weather always plays a
significant role in Zoo revenues.
Zoo Fund
$480,000
$960,000
$1,440,000
$1,920,000
$2,400,000
Budget Budget Budget
Actual Adopted Adopted
2010 2011 2012
Admissions
General Operations
GOLF
The City operates three public golf courses and relies heavily on greens fees and
concessions to operate these courses. Rebsamen and Hindman revenues
remained at 2010 levels despite fee increases. War Memorial revenues
increased 19% compared to 2010 primarily due to the temporary closure of the
course in 2010 during park renovations. Excluding transfers in, 2011 Golf
revenues increased 6.1% from 2010. There are no fee increases included in the
2012 budget.
Golf Fund
$0
$250,000
$500,000
$750,000
$1,000,000
Budget Budget Budget
Actual Adopted Adopted
2010 2011 2012
Green Fees
Equipment Rental
102
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City of Little Rock, Arkansas 2012 Operating Budget
VEHICLE STORAGE
Vehicle Storage revenues are primarily from storage fees, wrecker fees, and
auction sales, which generate approximately 89% of total revenues. Storage
fees increased from $35 to $37 (5.7%) effective January 1, 2011. Recent
legislation allowed Vehicle Storage to recognize revenues from auction sales that
had been previously deferred. Auction sale revenue increased $87,817 or 21%
based on this legislation. There were actually 75 fewer vehicle sales in 2011
compared to 2010, though the average sales price per vehicle increased by $151
in 2011. In addition, the demand for scrap metal increased due to higher market
values. Over the past three years, the demand for used vehicle parts has
increased due to the economic downturn. Total revenues for Vehicle Storage
increased $94,880 or 7.91%.
Fleet Services Vehicle Storage Facility
$140,000
$280,000
$420,000
$560,000
$700,000
Budget Budget Budget
Actual Adopted Adopted
2010 2011 2012
Storage Fees
Wrecker Fees
Vehicle Auctions
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 River Market 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. Monthly revenues from the Statehouse and
the Rivermarket Garages were higher in 2011 than 2010 but daily parking for the
Rivermarket Garage decreased. In addition, street cut revenues are declining
due to changes in agreements with utility service providers. The parking garage
bonds are expected to be fully redeemed in 2028. Eight (8) new solar-powered
pay parking stations will be installed in 2012 on President Clinton Avenue. The
installation will decrease the number of free parking spaces at the Rivermarket
by 108 spaces. The new meters are expected to generate monthly revenues of
approximately $4,000 with 50% of this total committed to reimburse the
installation costs of the meters in the first year.
103
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General Fund Revenues
Sources and Trends
2007-2012
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
Actual Actual Actual Actual Adopted Adopted
2007 2008 2009 2010 2011 2012
Carry-over
Transfers In
Miscellaneous
Investment Income
Fines and Fees
Intergovernmental
Charges for Service
Licenses and Permits
Property Taxes
Utility
Sales Taxes
104
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Expenditures
CITY OF LITTLE ROCK
2012 BUDGET SUMMARY
ALL FUNDS EXPENSES
$219,272,074
Street
Fund
7.55%
Fleet
Services
5.32%
Waste
Disposal
7.82%
General
Fund
72.31%
Parks
Enterprises
2.46%
Zoo
3.00%
Vehicle Storage
Facility
.60%
Parking
Garages
.93%
105
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2010 2011 2011 2012 11/12 %
GENERAL FUND ACTUAL ADOPTED AMENDED* ADOPTED DIFF CHANGE
General Administrative $20,124,522 $20,217,914 $20,026,560 $21,821,608 $1,795,048 9.0%
Board of Directors 213,453 233,632 233,632 236,721 3,089 1.3%
Community Programs 272,668 324,459 273,881 375,610 101,729 37.1%
City Attorney 1,401,365 1,559,402 1,480,944 1,620,798 139,854 9.4%
District Court First Division 1,068,906 1,299,580 1,174,520 1,358,190 183,670 15.6%
District Court Second Division 1,077,451 1,141,280 1,116,304 1,187,972 71,668 6.4%
District Court Third Division 473,973 526,734 488,254 546,736 58,482 12.0%
Finance 2,420,425 2,548,393 2,535,964 2,753,231 217,267 8.6%
Human Resources 1,290,121 1,337,147 1,169,224 1,494,036 324,812 27.8%
Information Technology 2,755,289 3,391,349 3,051,459 4,140,165 1,088,706 35.7%
Planning Development 1,753,799 2,256,555 1,776,156 2,392,680 616,524 34.7%
Housing & Neighborhood Programs 3,572,517 4,304,437 3,715,039 4,678,013 962,974 25.9%
Public Works 986,122 1,183,187 1,029,076 1,124,698 95,622 9.3%
Parks & Recreation 6,506,269 7,179,034 6,507,665 8,528,829 2,021,164 31.1%
Fire 35,689,954 34,059,385 34,336,588 36,255,791 1,919,203 5.6%
Police 50,987,755 51,455,947 48,015,331 55,007,824 6,992,493 14.6%
Vacancy Reductions (5,500,000) 361,350 (3,500,000) (3,861,350) -1068.6%
Sub-total General Operating 130,594,589 127,518,435 $127,291,947 140,022,902 12,730,955 10.0%
TRANSFERS OUT/OTHER EXPENSES
Transfer out to Street Fund 194,071 194,071 194,071 886,071 692,000 356.6%
Transfer out to Parks/Zoo 3,358,092 3,258,092 3,258,092 4,659,342 1,401,250 43.0%
Special Projects/PIT 3,109,577 3,400,820 3,610,220 9,464,729 5,854,509 162.2%
Waste Disposal (Recycling) 480,240
Police & Fire Pension 1,460,531
Contingency/Reserve 1,586,000 1,586,000
Sub-total of Transfers Out 6,661,740 6,852,983 7,062,383 18,536,913 7,947,759 112.5%
TOTAL GENERAL FUND 137,256,329 134,371,418 134,354,330 158,559,815 20,678,714 15.4%
OTHER FUNDS
Public Works - Street 16,353,979 15,164,843 15,238,843 16,551,612 1,312,769 8.6%
Fleet Services 9,528,597 10,488,935 10,888,935 11,667,454 778,519 7.1%
Vehicle Storage Facility 1,348,552 1,184,063 1,184,063 1,326,100 142,037 12.0%
Waste Disposal 16,489,863 17,694,120 17,814,540 17,154,395 (660,145) -3.7%
River Market 977,074 916,942 916,942 1,164,180 247,238 27.0%
Zoo 5,019,311 5,234,749 5,354,749 6,584,304 1,229,555 23.0%
Golf 2,893,907 2,826,136 2,826,136 2,870,282 44,146 1.6%
Jim Dailey Fitness and Aquatic Center 1,384,195 1,254,126 1,334,126 1,350,071 15,945 1.2%
Parking Garages 1,786,352 1,953,900 1,953,900 2,043,861 89,961 4.6%
Sub-total Other Operating Funds 55,781,830 56,717,814 57,512,234 60,712,259 3,200,025 5.6%
TOTAL ALL FUNDS 193,038,160$ 191,089,232$ 191,866,564$ 219,272,074$ 23,878,739$ 12.5%
* The 2011 Amended Budget includes a reduction in departmental budgets for vacancy savings achieved throughout the year. A total of
$10,410,631 city-wide, including $7,461,350 in the General Fund, was achieved by holding budgeted positions unfilled. The balance in
vacancy reductions shown in the General Fund is the amount of savings from authorized but unfilled positions in excess of the amended
budget target of $7,100,000.
CITY OF LITTLE ROCK
2012 OPERATING & OTHER BUDGETED EXPENDITURES
106
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$0
$20,000,000
$40,000,000
$60,000,000
2010 2011 2012
Police Fire
All Others General Administration
Transfers Parks & Recreation
General Government
Summary of Appropriations
2010-2012
107
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ACTUAL ADOPTED ADOPTED
CATEGORY 2010 2011 2012
Salaries Wages and Employee Benefits $102,280,119 $99,071,787 $108,123,085
Supplies and Materials 3,357,694 3,832,244 4,794,089
Repairs and Maintenance 4,388,094 4,633,176 5,095,607
Contractual 15,032,813 15,698,883 17,413,714
Capital Outlay 12,483 0 414,062
Debt Service 5,523,386 4,282,345 4,182,345
Transfers 6,661,740 6,852,983 18,536,913
Net City Expenditures $137,256,329 $134,371,418 $158,559,815
Staffing Level 1,542 1,543 1,590
Ratio 11.26 11.51 10.00
GENERAL FUND SUMMARY
9.00
9.50
10.00
10.50
11.00
11.50
12.00
2010 2011 2012
STAFFING LEVEL PER MILLION DOLLARS BUDGETED
108
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2010
A
ctual
Expend.
2011
A
dopted
Budget
2012
Adopted
Budget
GENERAL FUND
GENERAL ADMINISTRATIVE
101001 City Cler
k
111,87
2
$ 160,36
5
$ 168,62
5
$
10100
2
A
dministrative & Gener
a
15,512,40
6
15,812,351 17,048,09
5
10100
3
Employee Benefits 3,173,05
2
2,738,10
4
3,030,45
7
10100
4
Racial and Cultural Diversit
y
126,75
0
177,70
0
188,09
4
10100
6
Mayor & City Manager Administratio 912,63
2
1,027,13
8
1,050,18
9
10100
7
Emergency Manageme
n
49,76
7
48,54
4
55,171
10100
8
Small & Minority Women Owned Bus. De
v
46,47
5
50,27
6
53,061
10100
9
Little Rock Televisio
n
191,56
8
203,43
6
227,91
6
Total General Administrativ
e
20,124,52
2
20,217,91
4
21,821,60
8
BOARD OF DIRECTORS
101111 Board of Director
s
213,45
3
233,63
2
236,721
COMMUNITY PROGRAMS
101501
A
dministratio
n
211,57
3
260,93
5
267,12
8
10150
3
Operation
s
61,09
5
63,52
4
108,48
2
Total Community Program
s
272,66
8
324,45
9
375,61
0
CITY ATTORNEY
101801 City Attorne
y
1,401,36
5
1,559,40
2
1,620,79
8
LITTLE ROCK DISTRICT COURT
102101 District Court First Divisio
n
1,068,90
6
1,299,58
0
1,358,19
0
LITTLE ROCK DISTRICT COURT
102201 District Court Second Divisio
n
1,077,451 1,141,28
0
1,187,97
2
LITTLE ROCK DISTRICT COURT
102301 District Court Third Divisio
n
473,97
3
526,73
4
546,73
6
FINANCE
102501
A
dministratio
n
458,24
8
511,84
8
516,93
3
10251
5
Budge
t
140,24
6
147,97
4
160,03
3
10252
0
Internal Audi
t
143,82
8
149,78
4
159,16
9
10253
0
A
ccounting and Reportin
g
408,20
9
431,04
4
481,331
102531
A
ccounts Payabl
e
244,33
4
255,94
4
271,09
6
10253
5
Payrol
l
175,27
5
181,51
4
198,61
3
10254
0
Treasury Managemen 529,22
5
508,151 532,67
2
10255
0
Purchasing 195,02
6
204,89
0
221,01
7
10255
5
Print Sho
p
(15,036
)
10256
0
Grants Managemen 141,07
0
157,24
4
212,36
7
Total Financ
e
2,420,42
5
2,548,39
3
2,753,231
HUMAN RESOURCES
102701 Human Resource
s
1,290,121 1,337,14
7
1,494,03
6
INFORMATION TECHNOLOGY
103001
A
dministratio
n
355,29
9
498,61
3
997,98
6
10301
0
A
pplication Programmin
g
875,45
9
997,15
6
1,102,84
6
10303
0
Networkin
g
1,524,531 1,895,58
0
2,039,33
3
Total Information Technolog
y
2,755,28
9
3,391,34
9
4,140,16
5
CITY OF LITTLE ROCK
2012 OPERATING EXPENSES
109
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2010
A
ctual
Expend.
2011
A
dopted
Budget
2012
Adopted
Budget
CITY OF LITTLE ROCK
2012 OPERATING EXPENSES
PLANNING AND DEVELOPMENT
103301
A
dministration & Budge
t
222,93
6
228,31
0
262,83
0
10331
0
Plannin
g
219,20
5
371,10
9
399,52
6
10332
0
Zoning & Subdivisio
n
561,60
6
753,88
9
798,31
7
10333
0
Building Code
s
750,05
2
903,24
7
932,00
7
Total Planning and Developme
n
1,753,79
9
2,256,55
5
2,392,68
0
HOUSING AND NEIGHBORHOOD PROGRAMS
103501
A
dministratio
n
288,731 288,29
4
298,64
3
10351
0
A
nimal Service
s
804,39
7
975,20
9
1,089,58
8
10352
0
CDBG - Housing Program
s
45,251 47,55
4
2,68
0
10353
0
Neighborhood Program
s
1,464,06
7
1,963,48
7
2,210,40
0
10353
9
Neighborhood Alert Center
s
582,50
2
631,991 656,38
0
10354
0
Neighborhood Resource Cent
e
172,97
4
186,841 191,89
9
10355
0
Environmental Service
s
214,59
5
211,061 228,42
3
Total Housing and Neighborhood Program 3,572,51
7
4,304,43
7
4,678,01
3
PUBLIC WORKS
10401
0
Building Service
s
986,12
2
1,123,33
8
1,061,47
2
10402
0
A
sset Managemen
t
59,84
9
63,22
6
Total Public Work
s
986,12
2
1,183,18
7
1,124,69
8
PARKS AND RECREATION
104501
A
dministratio
n
304,431 314,78
0
335,03
9
10450
3
Design Schedulin
g
304,21
3
315,54
0
335,77
7
10451
0
Resources Administratio
n
282,54
6
373,77
9
394,99
6
104511 Cultural Museu
m
126,19
5
121,35
9
179,33
6
10451
2
Therapeuti
c
101,811 138,51
7
164,73
0
104521 Development and Maintenanc 105,96
7
116,01
6
121,39
4
10452
2
Operations and Improvement Developme
n
761,40
4
832,69
5
997,54
9
10452
3
Park Maintenanc
e
1,567,07
8
1,639,46
2
2,141,84
9
10452
4
Horticultur
e
509,591 565,91
4
828,01
9
10452
5
Urban Forestr
y
202,67
8
238,90
6
371,80
8
10453
0
Recreation Administratio
n
96,29
8
135,84
9
122,86
8
104531 Community Center Administratio
n
91,19
0
109,24
4
113,53
6
10453
2
Dunbar Community Cente 318,81
7
333,92
2
397,74
3
10453
3
East Little Rock Recreation Cent
e
64,53
5
88,89
5
93,78
5
10453
4
Senior Program
s
60,64
6
61,75
8
61,75
8
10453
6
Southwest Community Cente 397,90
3
468,221 525,13
4
10453
7
Stephens Community Cente 237,49
4
249,00
9
230,18
3
10453
8
University Park Adult Cente 183,80
3
231,40
4
252,33
0
10455
0
Swimming Pool
s
1,28
3
10455
6
A
thletics/Playground
s
528,86
2
570,75
0
578,74
5
10455
7
Tennis Center Operation
s
196,62
3
189,83
4
199,07
0
10455
8
N.W. Hill Community Comple
x
62,901 83,18
0
83,18
0
Total Parks and Recreatio
n
6,506,26
9
7,179,03
4
8,528,82
9
110
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2010
A
ctual
Expend.
2011
A
dopted
Budget
2012
Adopted
Budget
CITY OF LITTLE ROCK
2012 OPERATING EXPENSES
FIRE
105101
A
dministratio
n
* 5,050,37
6
1,034,37
4
1,086,70
6
10512
0
Fire Suppressing and Rescu
e
28,272,59
0
30,528,27
4
33,115,02
2
10513
0
Fire Prevention - Investigatio 670,21
2
725,95
8
471,981
10514
0
Fire Trainin
g
680,261 754,42
3
599,24
4
10515
0
Crash Fire Rescue - Airpor
t
1,016,51
5
1,016,35
6
982,83
8
Total Fir
e
35,689,95
4
34,059,38
5
36,255,791
POLICE
105201
A
dministratio
n
* 6,436,28
8
2,221,98
8
2,979,78
3
10521
0
Internal Affair
s
538,80
6
573,09
8
10521
5
Organized Crime - Intelligenc
e
4,410,34
5
4,439,14
8
5,396,541
10522
0
Training and Crime Preventio
n
1,427,03
5
1,449,55
9
1,872,80
7
10522
5
Detective
s
5,928,93
3
6,490,66
4
7,039,46
5
10523
0
Downtown Patro 7,465,39
8
8,812,00
4
9,206,33
0
10523
5
Southwest Patro 6,121,29
9
6,909,48
4
7,089,711
10524
0
Special Operation
s
4,346,79
7
4,620,77
9
4,723,74
4
10524
5
WW Willams Northwest Substation 6,060,65
6
6,306,77
0
7,029,10
3
10525
0
A
irport Polic
e
1,577,53
9
1,406,31
2
1,887,25
2
10525
5
Police Records Support Servic
e
4,038,94
4
4,761,53
5
4,118,93
5
10526
0
Communication Cente 2,635,71
5
3,464,60
6
3,664,15
3
Total Polic
e
50,987,75
5
51,455,94
7
55,007,82
4
Less Vacancy Reductio
n
(5,500,000
)
(3,500,000
)
General Fund Operating Tot
a
130,594,58
9
127,518,43
5
140,022,90
2
TRANSFER/OUT OTHER EXPENSES
Transfer out to Street Fund 194,071 194,071 886,071
Grant Fun
d
80,11
7
200,00
0
891,40
9
Transfer out to Parks/Zo
o
3,358,09
2
3,258,09
2
4,659,34
2
Special Projects/PI
T
3,029,46
0
3,200,82
0
8,573,32
0
Waste Disposal (Recycling
)
480,24
0
Police & Fire Pensio
n
1,460,531
Contingency/Reserv
e
1,586,00
0
Sub-tota
l
6,661,74
0
6,852,98
3
18,536,91
3
GENERAL FUND TOTA
L
137,256,32
9
134,371,41
8
158,559,81
5
* Actual 2010 Fire and Police Administration include pension contributions supported by a separ
a
tax levy and State Pension Turnback funds that are passed through and not included in the annual bud
g
PUBLIC WORKS - STREE
T
204001
A
dministration 2,444,71
5
793,25
5
1,155,60
0
20400
2
Operations Administratio
n
529,27
7
543,43
6
566,40
0
20400
3
Street and Drainage Maintenanc 5,436,98
8
5,893,16
8
6,538,74
3
20400
5
Storm Drain Maintenanc
e
761,841 803,55
3
860,54
5
20400
6
Work Pool 98,05
5
129,48
5
145,18
2
20400
7
Resource Control and Schedulin
g
325,56
5
336,661 371,58
4
20400
8
Control Device
s
798,74
8
849,21
5
885,85
6
20401
0
Signal
s
853,32
7
909,62
2
971,69
8
20401
5
Parking Meter
s
84,081 90,99
3
96,31
5
20402
0
Civil Engineerin
g
1,233,071 1,258,97
0
1,338,16
3
20402
5
Traffic Engineerin
g
3,592,881 3,303,301 3,356,21
6
20403
0
Parking Enforcemen
t
195,43
0
253,18
4
265,31
0
Total Street Fund 16,353,97
9
15,164,84
3
16,551,61
2
111
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2010
A
ctual
Expend.
2011
A
dopted
Budget
2012
Adopted
Budget
CITY OF LITTLE ROCK
2012 OPERATING EXPENSES
FLEET SERVICES
600001
A
dministratio
n
666,20
4
1,250,99
5
509,55
3
600011
A
cquisition & Disposa 5,540,64
5
5,806,66
7
7,086,02
9
60002
0
Financial Manageme
n
228,93
7
295,30
2
307,461
600031 Maintenance Administratio
n
3,092,811 3,135,971 3,764,411
Total Fleet Service
s
9,528,59
7
10,488,93
5
11,667,45
4
FLEET SERVICES VEHICLE STORAGE FACILIT
Y
1,348,55
2
1,184,06
3
1,326,10
0
WASTE DISPOSA
L
603101
A
dministratio
n
2,864,89
9
3,905,89
9
2,478,95
6
60311
0
Collectio
n
8,961,03
5
9,614,46
3
9,929,96
9
60312
0
Disposa
l
3,551,791 2,528,31
8
3,780,47
7
60312
5
Compostin
g
449,69
0
523,25
0
577,49
3
60313
0
Waste Managemen
t
662,44
8
1,122,19
0
387,50
0
Total Waste Disposal Fun
d
16,489,86
3
17,694,12
0
17,154,39
5
RIVERMARKET 977,07
4
916,94
2
1,164,18
0
ZOO
607101 Zoo Administratio
n
1,168,101 1,040,55
6
1,165,54
8
60711
0
Zoo Concession
s
219,20
0
275,20
6
302,31
4
60712
0
Zoo Educatio
n
38,23
9
121,42
0
201,30
3
60713
0
Zoo Gift Sho
p
229,62
4
198,68
0
218,68
0
60714
0
Zoo Membershi
p
12,26
0
55,90
0
57,96
6
60715
0
Zoo Special Event
s
80,751 79,25
0
79,25
0
60716
0
Zoo Marketing & Promotion
s
243,97
5
249,11
0
420,93
9
60717
0
Zoo Facilities Operatio
n
1,213,96
6
1,240,52
4
1,887,65
8
60718
0
A
nimal Managemen 1,416,96
7
1,605,12
2
1,835,92
3
60719
0
Visitor Service Administratio
n
396,22
8
368,981 414,72
3
Total Zoo Fund 5,019,311 5,234,74
9
6,584,30
4
GOLF
609101
A
dministratio
n
766,60
7
759,94
6
678,56
3
60911
0
Rebsamen Golf Pr
o
398,02
2
366,27
2
388,71
7
609111 Rebsamen Golf Maintenanc
e
599,921 576,631 634,13
4
60911
2
Rebsamen Pro Golf Concession
s
55,62
3
58,53
3
58,53
3
60912
0
War Memorial Golf Pr
o
254,32
3
243,51
0
256,34
5
609121 War Memorial Golf Maintenanc
e
295,651 274,14
4
305,19
6
60914
0
Hindman Pro Gol
f
290,31
3
296,81
5
294,12
8
609141 Hindman Golf Maintenanc
e
233,44
7
250,28
5
254,66
6
Total Golf Fund 2,893,90
7
2,826,13
6
2,870,28
2
JIM DAILEY FITNESS AND AQUATI
C
1,384,19
5
1,254,12
6
1,350,071
PARKING GARAGE
S
1,786,35
2
1,953,90
0
2,043,861
GRAND TOTAL ALL FUNDS 193,038,160$ 191,089,232$ 219,272,074$
112
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CITY OF LITTLE ROCK
2012 ALLOCATION OF
FULL TIME PERSONNEL
Police
34.20%
Fire
20.31%
Parks
7.09%
All Other
General Fund
16.55%
Fleet
3.57%
Street
10.18%
Waste
5.40%
Zoo
2.70%
Police 709 Fire 421 Street 211
Waste 112 Zoo 56 All Other
General Fund 343
Fleet &
Storage Facility 74 Parks 147
113
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2010 2011 2012
Adopted Adopted Adopted
Budget Budget Budget
General Fund
General Administrative 25 25 26
Board of Directors 1 1 1
Community Programs 6 7 8
City Attorney 18 18 18
District Court First Division 21 21 21
District Court Second Division 17 17 17
District Court Third Division 7 7 7
Finance 40 40 40
Human Resources 18 18 19
Information Technology 37 38 38
Planning & Development 39 39 39
Housing & Neighborhood Programs 94 94 96
Public Works - General 13 13 13
Parks & Recreation 100 100 117
Fire 408 408 421
Police 698 697 709
Subtotal General Fund 1,542 1,543 1,590
Other Funds
Public Works - Street 210 210 211
Fleet Services 60 60 59
Waste Disposal 112 112 112
River Market - - -
Zoo 45 46 56
Vehicle Storage Facility 17 15 15
Golf 21 21 21
Jim Dailey Fitness & Aquatics Center 9 9 9
Subtotal Other Funds 474 473 483
Total Personnel 2,016 2,016 2,073
CITY OF LITTLE ROCK
FULL TIME PERSONNEL BUDGET SUMMARY
114
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CITY OF LITTLE ROCK
FULL-TIME PERSONNEL AUTHORIZATIONS
2008 - 2012
2032
2058
2016 2016
2073
2000
2010
2020
2030
2040
2050
2060
2070
2080
2008 2009 2010 2011 2012
EMPLOYEES
The net change in personnel between 2011 and 2012 total positions are as indicated
in the chart below.
2011 Adopted Budget 2,016
General Administration 1
Community Programs 1
Human Resources 1
Housing 2
Parks 17
Fire 13
Police 12
Street 1
Fleet (1)
Zoo 10
2012 Adopted Budget 2,073
115
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City of Little Rock 1/2% Sales Tax
2000 - 2011
$0
$2,500,000
$5,000,000
$7,500,000
$10,000,000
$12,500,000
$15,000,000
$17,500,000
$20,000,000
$22,500,000
$25,000,000
2001
2002
2003
2004
2005
2006
20
07
2008
2009
2010
2011
The 1/2 City Sales Tax accounts for the revenue and expenditures used for
operating programs and special projects.
General Fund
Revenue
Operating
Program
Special Project
116
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CITY OF LITTLE ROCK
2012 GENERAL FUND EXPENDITURES
2010 2011 2012
A
dopted Revised Adopted
Budget Budget Budget
SPECIAL PROJECTS
Children, Youth, & Families (CYF
)
$2,500,000 $2,500,000 $5,500,000
Facility Improvements 225,000 225,000 975,000
Annual Fleet Replacement 800,000
Supplemental Jail Funding 240,000 300,000
Homelessness Outreach 200,000 200,000 250,000
Land Bank 68,420 168,420
Demolition (Residential & Commercial) 150,000
Board & Secure 100,000
Weed Lot Maintenance 75,000
Curran Hall 50,000 50,000 35,000
Federal & State Legislative Consulting 45,000 45,000 45,000
Environmental Youth (Parks) 37,500
American Disability Act (ADA) 30,000 30,000 30,000
Work Boots 25,000 25,000 25,000
2010 Census 25,000
Junction Bridge 15,000 25,000 25,000
Sister Cities 20,000 20,000 20,000
Neighborhood Challenge Grant 15,000
National Night Out 10,000 10,000 10,000
Worldfest 10,000
Neighborhood Connection 2,400 2,400 2,400
Total Special Projects 3,387,400 3,200,820 8,573,320
GRANT MATCH
TIGER III Grant 500,000
Undesignated 80,000 150,000 150,000
AEDC-CNG Station Grant 114,695
Police Universal COPS Grant Match 70,000
Fire Granr Match: 50,000
Driving Simulator 66,714
Prevention Grant 10,000
Parks & Recreation Outdoor Grant 25,000
National Endowments of the Arts (NEA) 25,000
Central LR Promise Neighborhood 50,000
Total Grant Match 200,000 200,000 891,409
GRAND TOTAL $3,587,400 $3,400,820 $9,464,729
117
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CITY OF LITTLE ROCK
2012 OPERATING BUDGETS
BY SERVICE PROGRAM CATEGORY
Public Safety
$108,479,456
Public
Health/
Public
Utilities
$17,967,206
Economic
Development
$488,484
Housing &
Neighborhood
Revitalization
$7,215,876
Transportation
$22,486,249
Leisure
Services
$21,590,760
General
Government
$28,576,589
All Other
Expenditures
$12,467,454
$219,272,074
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2011 % to 2012 % to
Service/Program Categor
y
Budget Total
B
u
d
get
Total
Public Safety
Police $51,455,947 $55,968,373
Fire 33,043,029 35,772,953
Street Lights, Traffic Signals & Signs 5,062,138 5,213,770
Little Rock District Court First Division 1,299,580 1,358,190
Animal Services 975,209 1,089,588
Little Rock District Court Second Division 1,141,280 1,187,972
Children, Youth & Families 2,500,000 5,500,000
Community Programs 524,459 625,610
Pulaski County Regional Detention Facility 1,463,000 1,763,000
Total Public Safety 97,464,642 51.0% 108,479,456 49.5%
Public Health/Public Utilities
Waste Disposal 15,119,669 16,442,444
Little Rock District Court Third Division 526,734 546,736
Arkansas Emergency Physician Foundation 36,000 36,000
Saint Vincent's 25,381 25,381
Storm Drainage 803,553 860,545
Pulaski County Health Department 56,100 56,100
Total Public Health/Public Utilities 16,567,437 8.7% 17,967,206 8.2%
Economic Development/Employment
Little Rock Chamber of Commerce 200,000 200,000
Metroplan 163,484 163,484
Downtown Partnership/Empowerment Zone 125,000 125,000
Total Economic Development/Employment 488,484 0.3% 488,484 0.2%
Housing and Neighborhood & Waste
Disposal Revitalization,
Growth & Development
Planning & Development Department 2,386,055 2,522,180
Alert Centers 631,991 656,380
Neighborhood Resource Center 186,841 191,899
Housing & Neighborhood Prog. Admin. 2,510,396 2,740,146
Demolition, Weed Lot Maintenance, Board/Secure 990,271 1,105,271
Total Housing & Neighborhood
Revitalization, Growth
6,705,554 3.5% 7,215,876 3.3%
CITY OF LITTLE ROCK
ADOPTED OPERATING BUDGETS BY SERVICE PROGRAM CATEGORY
2011 - 2012
119
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2010 % to 2011 % to
Service/Program Categor
y
Budget Total
B
u
d
get
Total
Transportation Services
Central Arkansas Transit Authority 6,602,836 7,511,153
Streets 9,099,975 10,260,672
Parking 344,177 361,625
Parking Garages 1,953,900 2,043,861
Vehicle Storage Facility 1,184,063 1,326,100
A
irport Rescue 1,016,356 982,838
Total Transportation Services 20,201,307 10.6% 22,486,249 10.3%
Leisure Services/Cultural Support
/
Conventions & Tourism
Parks & Recreation 7,432,675 8,724,493
Golf 2,826,136 2,870,282
Jim Dailey Fitness Aquatic Center 1,254,126 1,350,071
River Market 916,942 1,164,180
Zoo 5,234,749 6,584,304
Cultural Institutes:
Arts Center 200,000 300,000
Museum of Discovery 200,000 200,000
MacArthur Military Museum 121,359 179,336
Sister Cities Commission 20,000 20,000
Racial & Cultural Diversity Commission 177,700 198,094
Total Leisure Services/Cultural
Support/Conventions
18,383,687 9.6% 21,590,760 9.8%
G
enera
l
G
overnmen
t
S
uppor
t
Board of Directors 233,632 236,721
General Administrative 10,311,076 16,231,940
Finance 2,548,393 2,753,231
Human Resources 1,337,147 1,494,036
City Attorne
y
1,559,402 1,620,798
Information Technolog
y
3,391,349 4,140,165
Building Services/Asset Management 1,408,187 2,099,698
Total General Government Support 20,789,186 10.9% 28,576,589 13.0%
All
Oth
er
E
xpen
dit
ures
Fleet Services 10,488,935 12,467,454
Total Other Expenditures 10,488,935 5.5% 12,467,454 5.7%
Grand Total $191,089,232 100.0% $219,272,07
4
100.0%
Adopted Operating Budgets by Service Program Category
2010 - 2011
City of Little Rock
120
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94,649,005
$94,553,613
$103,812,881
0
25,000,000
50,000,000
75,000,000
100,000,000
125,000,000
2010 2011 2012
$141,143,481 $134,371,418 $158,559,815Revenues
67% 70% 65%
Expenditures
Percentage
CITY OF LITTLE ROCK
PUBLIC SAFETY REVENUES &
EXPENDITURES
COMPARISIONS
2010 2011 2012
Fire $35,689,954 $34,059,385 $36,255,791
Police 50,987,755 51,455,947 55,007,824
District Court First Division 1,068,906 1,299,580 1,358,190
District Court Second Division 1,077,451 1,141,280 1,187,972
District Court Third Division 473,973 526,734 546,736
Alert Centers 582,502 631,991 656,380
Neighborhood Programs (Rental Inspection) 1,464,067 1,963,487 2,210,400
Animal Services 804,397 975,209 1,089,588
Prevention Intervention & Treatment 2,500,000 2,500,000 5,500,000
Public Safety Expenditures 94,649,005 94,553,613 103,812,881
General Fund Revenue $141,143,481 $134,371,418 $158,559,815
Percentage of General Fund Expenditures Devoted
to Public Safety 67% 70% 65%
121
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CITY OF LITTLE ROCK
PUBLIC SAFETY OPERATING
EXPENDITURES AS A PERCENTAGE
OF GENERAL FUND REVENUE
2002-2012
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
2003
Actual
2004
Actual
2005
Actual
2006
Actual
2007
Actual
2008
Actual
2009
Actual
2010
Actual
2011
Forecast
2012
Forecast
(Millions)
General Fund Revenue Public Safety Expenditures
$103.1
$113.6
$114.9
$119.7
$137.3
$143.9
$144.1
$141.1
$134.3
$158.6
60%
56%
59%
59%
62%
61%
67%
67%
70%
65%
122
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Capital Improvements
City of Little Rock, Arkansas 2012 Operating Budget
CAPITAL FUNDING
State laws limit the use of borrowing for municipal purposes. General obligation
bonds, when approved by voters and secured by property tax levies, may be
issued for long-term capital improvements. Revenue bonds are not general
obligations of the City but are secured by specific revenues associated with a
project. They may be issued for certain specified municipal purposes.
The Capital Improvement Program (CIP) is a multi-year plan for capital
expenditures to replace and expand the City’s infrastructure, vehicles and
equipment. The program is updated annually to reflect the latest priorities,
updated cost estimates and available revenue sources.
The purpose of the CIP is to fund capital projects and capital acquisitions that
will be of a long-term benefit to the citizens of Little Rock. The CIP is financed
over a period of time due to the long-term benefit of the projects. For program
purposes, the City defines a capital improvement as a major improvement or
acquisition that results in a capital asset costing more than $5,000 and having a
useful life (depreciable life) of two years or more. Exceptions are for
infrastructure assets which are defined as having a constructed cost greater than
$250,000.
Capital assets are depreciated using the straight-line method over their
estimated useful lives ranging from 15 50 years for infrastructure, 10 75
years for buildings and 3 - 25 years for land improvements, vehicles and
equipment. Depreciation expense is charged directly to the department/function
based on the department that utilizes the related asset.
In addition, appropriations for special projects are made each year by the Mayor
and Board of Directors to finance specific events and capital outlays. These
projects are carried forward from year to year until they are fully expended or
repealed by the Mayor and Board of Directors by ordinance.
CAPITAL PROJECT FUNDS PROVIDED BY BOND ISSUES
These funds are derived from the proceeds of selling City general obligation
bonds and are used for major capital improvements.
1988 Capital Improvements Fund
Accounts for the proceeds of the 1988
Capital Improvement Bonds issued to finance improvements to the streets and
drainage systems, parks, arts center, museum and Robinson Auditorium, as well
construct a new police substation, a library branch and two fire stations. The
remaining funds available from interest earnings on these bond funds have been
allocated to the South Loop and Scott Hamilton Drive improvements described in
the 2010 Capital Improvements section.
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City of Little Rock, Arkansas 2012 Operating Budget
1995 Capital Improvements Fund
Accounts for the proceeds of the 1995
Series B Capital Improvement Bonds issued to finance capital improvements
including streets, parks, drainage, firefighting, police and community centers.
2004 Capital Improvements 2004 Limited Tax General Obligation Refunding
Bonds were issued to finance capital improvements within the City of Little Rock,
to fund capitalized interest and to pay the costs of issuance of the Bonds. These
bonds are limited tax general obligations secured by all proceeds derived from
the 3.3 mills annual ad valorem tax located with the City. The remaining funds
available from interest earnings on these bond funds have been allocated to a
traffic signal and intersection improvements at Vimy Ridge Road and Alexander
Road. Any residual balance may be allocated to retire debt on the bonds.
2004 Central Arkansas Library Capital Improvements
– Accounts for the
proceeds of the 2004A and 2004B Library Improvement and Refunding Bonds
issued to refund the Series 1999B Library Improvement and Refunding Bonds
and the Series 2002 Library Improvement Bonds, to finance the cost of
acquiring, constructing and equipping capital improvements to the public city
libraries operated by the City and the Central Arkansas Library System, and to
pay the costs of issuance of the bonds. Library capital improvements are
maintained by the Central Arkansas Library System.
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 th