About the Cover: What makes a city a great place to live? According to Kiplinger
Personal Finance, good jobs, reasonably priced homes, quality schools, great
health care and manageable size are all essential parts of the mix. With our scenic
beauty, diverse community, cultural offerings and key employers—including the
state government, major healthcare institutions, and international industries—Little
Rock has the amenities of a larger city but is small enough that residents feel like a
strong part of the community fabric.
All of that caught the attention of Kiplinger, which named Little Rock the #1 Great
Place to Live. This honor afrmed what those of us who call Little Rock home
already recognize: it is a great city for living, working and playing. It serves as a
testament to visionaries who have worked to position Little Rock as a leading city.
The cover of the City’s 2014 Annual Operating Budget features photographs of some
of the many things that make Little Rock the #1 Great Place to Live including our city
employees, diverse citizens, vibrant downtown, numerous amenities, and
outstanding employers. We realize this is an incomplete depiction of why Little Rock
is such a great place to live, because for each one of our citizens those reasons are
different, and that is what truly makes Little Rock the greatest place to live.
Downtown skyline photo courtesy of Paul Barrows
City of Little Rock, Arkansas 2014 Operating Budget
City of Little Rock
2014 Annual Operating Budget
Bruce T. Moore
City Manager
Prepared by:
Department of Finance
Sara Lenehan, Finance Director
LaVerne DuVall, Budget Officer
1
The enclosed 2014 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 2014 budget document and budget documents for
previous years can be found on the City of Little Rock’s website located at:
www.littlerock.org
If you have any comments, suggestions for improvement, or questions
concerning the City’s annual budget, please contact the Budget Office at (501)
371-4559. Thank you for your interest in the City of Little Rock.
2
The Government Finance Officers Association of the United States and Canada
(GFOA) presented an award for Distinguished Budget Presentation to the City of
Little Rock, Arkansas for its annual budget document for the fiscal year beginning
January 1, 2013.
In order to receive this award, a government unit must publish a budget document
that meets program criteria as a policy document, as an operation guide, as a
financial plan, and as a communications medium.
The award is valid for a period of one year only. We believe our current budget
document continues to conform to program requirements, and we are submitting it to
GFOA to determine its eligibility for another award.
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4
INTRODUCTION Page
Title Page ............................................................................................................ 1
Budget Award ...................................................................................................... 3
Table of Contents ................................................................................................ 5
Little Rock at a Glance ......................................................................................... 9
City of Little Rock Board of Directors ................................................................. 10
How to Use the Budget Document .................................................................... 11
Management Team ........................................................................................... 15
City of Little Rock Organizational Chart by Fund Responsibilities .................... 17
City of Little Rock Operating Fund Structure ..................................................... 18
City Manager’s Transmittal Letter ...................................................................... 21
Overall City Goals and Objectives................................................................. 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
2014 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
5
Enterprise Funds ........................................................................................... 69
Internal Service Fund .................................................................................... 71
Fiduciary Funds ............................................................................................. 72
Debt Service Funds ....................................................................................... 74
2014 Long Term Forecast ............................................................................. 77
REVENUES
All Funds Operating Revenue Sources Graph .................................................. 81
All Funds Operating Revenue Summary ........................................................... 82
General Fund Summary of Revenue ................................................................. 83
All Funds Operating Revenue Detail ................................................................. 84
Revenue Trends ................................................................................................ 89
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
Other General Fund Budget Expenditures ......................................................116
Service Program Graph ...................................................................................117
Service Program Category ..............................................................................118
Public Safety Revenue and Expenditure Comparisons ..................................120
Public Safety Operating Expenditures as a Percentage of General Fund .....121
CAPITAL IMPROVEMENTS
Capital Funding. ...............................................................................................123
Capital Project Funds Provided by Bond Issues .............................................123
Capital Project Funds Provided by Other Sources ..........................................124
2014 Capital Improvements ......................................................................... 128
2014 Major Capital Projects ........................................................................ 129
6
Significant Routine Capital Expenditures ............................................ 129
Significant Non-Routine Capital Expenditures ..................................... 129
Significant Non-recurring Parks and Zoo Projects Funded
by the 2009A Capital Construction Revenue Bonds ...................... 130
Other Significant Non-Recurring Capital Improvements ...................... 131
Capital Funding Activity Graphs .................................................................. 140
DEBT MANAGEMENT
Debt Management ....................................................................................... 141
City’s Legal Debt Margin ............................................................................. 141
Debt Applicable to Debt Limit 2004 2013 ................................................. 142
Summary of Bond Indebtedness ................................................................. 143
Future Debt Service ..................................................................................... 144
GENERAL FUND DEPARTMENTS
Mayor ...............................................................................................................147
General Administrative ....................................................................................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
Parks and Recreation ......................................................................................227
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River Market ....................................................................................................233
Golf. .................................................................................................................237
Jim Dailey Fitness and Aquatic Center ............................................................243
Zoo ..................................................................................................................249
Fire ..................................................................................................................255
Police ...............................................................................................................261
SPECIAL REVENUE FUND DEPARTMENT
Public Works Street .........................................................................................267
INTERNAL SERVICE FUND DEPARTMENT
Fleet Services ..................................................................................................273
ENTERPRISE FUND DEPARTMENTS
Vehicle Storage Facility ...................................................................................279
Waste Disposal ...............................................................................................285
APPENDIX
State and City Budget Statutes .......................................................................291
Statistical Information ......................................................................................295
Glossary of Key Budget Terms ........................................................................305
Glossary of Key Acronyms Terms ...................................................................312
8
LITTLE ROCK AT A GLANCE
Two hundred years ago, the first permanent settlement was established in what is now
known as Little Rock. Since 1812, Little Rock has grown from one person to become the
Capital City of Arkansas with a population of 193,524. The metropolitan area population is
699,757 with more than 1 million people living within 70 miles of Little Rock.
The City is named for La Petite Roche, a rock formation on the banks of the Arkansas River.
It created a natural harbor which made Little Rock an early center of business and
commerce. Today, that tradition continues as Little Rock is home to several large
corporations. Among the City’s major industries are technology, healthcare, retail,
manufacturing and government. The presence of these industries helps to explain the City’s
lower than average unemployment rate of approximately 6.7%.
New businesses and housing opportunities are bringing people back to the City’s core to
live, shop, work and play. The River Market district is home to many restaurants, shops
and offices as well as attractions such as the Clinton Presidential Center and Park, several
other museums, and an expanding nationally-recognized bike trail system. In addition, the
Main Street Creative Corridor, MacArthur Park area, SoMA (South Main) and renovation of
Robinson Center Music Hall are some of the other exciting projects in the City’s core.
Redevelopment continues in the City’s older neighborhoods and the City is experiencing
new growth in areas to the west and southwest.
Medical facilities in the Little Rock area provide efficient, comprehensive service to more
than two million individuals throughout the state. The twenty major area hospitals
provide bed space for over 2,700 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 five colleges, seven institutes
and the Graduate School serve more than 2,800 students. The University of Arkansas at
Little Rock (UALR) is a metropolitan university educating 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.
Situated along the southern bank of the Arkansas River, Little Rock is located where the
Delta meets the Ouachita and Ozark mountain ranges. With lakes and streams inside the
city limits and nearby, outdoor recreational options are almost unlimited. Residents and
visitors alike enjoy hiking, camping, boating, hunting, fishing, golf, tennis, swimming, and
soccer.
The Little Rock region offers wonderful opportunities for visitors: A City rich in history and
culture; many recreational opportunities; downtown entertainment; an energetic business
climate; and a major emphasis on quality of life initiatives for our citizens and visitors.
9
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Mayor Mark Stodola
Director Erma Hendrix
Ward One
Director Ken Richardson
Ward Two
Director Stacy Hurst
Ward Three
Vice Mayor Doris Wright
Ward Six
Director B.J. Wyrick
Ward Seven
Director Lance Hines
Ward Five
Director Brad Cazort
Ward Four
Director Joan Adcock
Position Ten
Director Gene Fortson
Position Nine
Director Dean Kumpuris
Position Eight
City of Little Rock
Board of Directors
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City of Little Rock, Arkansas 2014 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 in the coming fiscal year,
January 1 to December 31. The budget is based on estimates of projected
revenues and other funding sources. Appropriations for City programs are
recommended based on available resources and priorities set by the City Board
of Directors.
As required by law, the Mayor submits a recommended budget to the Board of
Directors. The Board of Directors conducts an extensive review of the
recommended budget and holds several public hearings to receive citizen input.
Once any necessary modifications are made, the Board of Directors adopts the
Budget Ordinance. Upon completion, the Budget Document is published.
The budget must be adopted on or before December 30. A calendar of events
for budget development activities for fiscal year 2014 is included in this document
to more adequately describe the budget development process.
The 2014 Basic Budget is comprised of four major fund types: the General Fund,
Special Revenue Funds, an Internal Service Fund and Enterprise Funds.
The General Fund is utilized to account for revenues and expenditures for the
regular day-to-day operations of the City. The primary sources of revenue for the
General Fund are local sales taxes, property taxes, and utility franchise fees.
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City of Little Rock, Arkansas 2014 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
River Market
Golf
Jim Dailey Fitness & Aquatics
Zoo
Fire
Police
The other major fund types are described below:
1. Special Revenue Funds – These funds are utilized to account for revenues
that are legally restricted to expenditures for specific purposes, e.g., street
fund and grant funded programs.
2. Enterprise Funds – Proprietary funds in which the services provided are
principally supported through charges to the users of the services, e.g., solid
waste fund, vehicle storage facility and parking garages.
3. Internal Services Fund – Funds that provide services to other parts of the City
organization, e.g., motor pool, vehicle maintenance and insurance.
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City of Little Rock, Arkansas 2014 Operating Budget
Payments to the Internal Services Fund are not reflected as transfers, but are
included as line items within the budgets of the departments in all operating
funds.
Operating Flow of Funds
Revenues are deposited into the General Fund as a result of specific activities.
For example:
General Fund Enterprise Funds
Property Taxes Service Rates
Sales Taxes Sanitation Fees
Licenses & Permits Compost Sale
Expenditures are made from the General Fund to support activities. For
example:
General Fund
General Fund Departments - Police, Fire, Parks & Recreation, etc.
Personnel, supplies and materials, repairs and maintenance, contractual,
capital outlay, debt service, and transfers out.
Enterprise Fund
Enterprise Funds – Waste Disposal, Vehicle Storage, Facility and Parking
Garages.
Personnel, supplies and materials, repairs and maintenance, contractual,
closure/post closure, depreciation, debt service, and transfers out.
Departments within the General Fund, Special Revenue Funds, and Enterprise
Funds make payments into the Internal Service Fund for Fleet operations and
vehicle and equipment maintenance.
Capital Budget
The Capital Budget consists of major capital projects, which often require more
than one year to complete and place in service. Examples of capital projects
include street and drainage construction, building construction, and park
development. A description of the source of funding for capital projects is
included in the Capital Improvements section of this document. In addition, this
section includes the estimated funds required for the ongoing operation and
maintenance of the assets resulting from the capital improvement projects.
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City of Little Rock, Arkansas 2014 Operating Budget
The completion of certain capital projects may be delayed for a period of time if
corresponding operating and maintenance funds are not available.
Debt Service Flow of Funds
The City issues debt after one of the following:
Approval by City Board to issue Temporary Notes, Certification of Obligations
or Revenue Bonds.
Successful completion of a Bond Election.
Funds generated from the sale of debt obligations are allocated to individual
special projects within the capital project funds. When a project is completed and
the project account closed, unused funds may be directed to retirement of the
debt service obligation. The Debt Service Funds are primarily supported by
property tax millages, which require voter approval, for the express purpose of
debt retirement. Other revenue sources for debt retirement include franchise
fees and system revenues. The Debt Service Funds initiate payments of principal
and interest to the bond purchasers. A description of the source of funding for
debt retirement and a discussion of the City’s legal debt margin is included in the
Debt Management section of this document.
Format for Budget Expenditures
A summary of budgeted operating expenditures and personnel is included in the
Expenditure section of this document. Following the summary information, each
Department’s organizational chart, mission statement, expenditure budget,
staffing summary, 2013 priorities and results, 2014 goals, and applicable service
measures are presented.
Major Categories of expenditures 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
Jon Honeywell 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 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
RiverMarket
Golf
Jim Dailey Fitness and Aquatics
Center
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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OVERVIEW
General Fund:
The General Fund 2014 Operating Budget includes several significant changes from
the original 2013 Operating Budget. The 2014 Budget and the 2013 Amended Budget
include separate property tax levies and State Turnback Funds dedicated to the closed
Police and Fire Pension Plans. The revenues are recognized in the General Fund and
then passed through to the Police and Fire Pension Plans as pension contributions
reflected in the Police and Fire Departments. The impact of this adjustment is
approximately $10.9 million to the 2014 Budget and $10.7 million to the 2013
Amended Budget. In prior years, this adjustment was reflected in the actual revenues
and expenses of the General Fund at year-end; however, it was not included in the
Annual Budget.
Little Rock citizens passed an additional one (1)-cent local sales tax in September
2011 that was effective on January 1, 2012. Faced with significant challenges with
stagnant revenue in many areas due to the lingering effects of the economic downturn,
and one of the lowest local tax rates in the State, citizens supported the new tax
initiative. The City held several public hearings in each Ward to discuss priority needs
associated with Public Safety, Public Works, Jobs and Economic Development, Parks
and Recreation, Zoo and Tourism, and other priorities, including fleet replacement,
information technology needs, pension funding, and public transportation. The priority
needs were divided between on-going operating needs and capital needs. The five-
eighths (5/8)-cent permanent increase in sales tax for operations is reflected in the
FY14 Adopted Budget. The three-eighths (3/8)-cent temporary sales tax for capital
projects, which expires in ten (10) years (2021), is discussed in detail in the capital
section of the budget document. In addition, in a special election held on September
11, 2012, Little Rock citizens approved the issuance of capital improvement bonds not
to exceed $105 million for street and drainage improvements. Up to $73.5 million of
the bonds are dedicated to street improvements with the remaining $31.5 million
available for drainage improvements throughout the City. The bonds are secured by a
three (3)-mill ad valorem tax on taxable property located within the City of Little Rock.
The City issued $58,105,000 in bonds on July 24, 2013. A second series of bonds will
likely be issued in 2016 or 2017.
Sales Tax continues to be the leading revenue source for the City at approximately
52% of general fund revenues. The City’s sales tax is composed of a one and one-
eighth (1-1/8)-cent local tax on gross receipts, which includes the half (1/2)-cent sales
tax in effect since 1994, combined with the new five-eighths (5/8)-cent operating sales
tax effective January 1, 2012, as well as a per capita allocation of a one (1)-cent
County tax and State Turnback Funds. The three-eighths (3/8)-cent temporary sales
tax for capital projects is not reflected in the operating budget; however, it is reported
in a separate capital projects fund. Revenue from the operating portion of the new
sales tax is committed primarily to filling vacant Police Officer positions, supporting the
twelve (12) new Fire positions for the West Little Rock Fire Station that opened in
2012, maintaining grant-funded positions in the Police and Fire Departments and the
addition of Code Enforcement Officers. Also included is funding for neighborhood-
based/community initiatives of $5.5 million, increased funding for building
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maintenance, expanded park maintenance, Zoo deferred maintenance, operations
and staffing, annual fleet replacement, information technology staffing and
maintenance, and new transit routes. Many of the initiatives supported by the new
sales tax were implemented during 2012 and will experience the second full year of
operation in 2014. Changes to the Arkansas Sales and Use Tax Law known as the
“streamlined sales tax” took effect beginning January 1, 2008. Sales tax revenues are
distributed based on where the purchaser takes receipt or delivery of the product or
service. In addition, local tax caps on most single transactions are no longer
applicable when City and County Sales and Use Taxes are collected. The local tax
cap continues to apply to the first $2,500 per item on the sale of motor vehicles,
aircraft, watercraft, modular homes, manufactured homes, or mobile homes.
Businesses, schools, governments and charitable organizations are able to recover
the tax paid on single transactions over the previous cap amount through a rebate
program. The program allows such tax payers a period of up to six (6) months from
the date of the transaction in which to claim the rebate. State Statute restricts the level
of tax information available to municipalities which makes forecasting sales and use
tax revenues very difficult. Growth in sales tax receipts compared to the same period
a year ago were volatile throughout the year. Based on growth of approximately
0.25% in the first ten (10) months of 2013, combined with a slight increase associated
with the slow recovery from the economic downturn and the recent opening of a Bass
Pro Shop in Southwest Little Rock, growth for 2014 was projected to be approximately
1.75%. Net of an anticipated decline in State sales turnback revenues, growth of
approximately 1.5% over the Amended 2013 Budget will be required to meet the 2014
sales tax budget of $96,123,400.
Franchise fees from local utilities comprise approximately 15% of general fund
revenues. Franchise fees from Entergy Corporation, the electric utility, decreased
approximately 1.7% in 2013 and are expected to decrease by 4% in 2014, due
primarily to the discontinuance of a rate adjustment associated with the utility’s exit
from a multi-state agreement in which it had operated for decades to equalize rates
among member states. Storm recovery charges passed on to customers and weather
impact rates and usage. Franchise fees from Centerpoint Entergy, the gas utility,
increased approximately 19% in 2013 with an increase in usage of approximately 15%
after decreasing 22.8% in 2012 primarily due to lower natural gas prices and a 10%
decline in usage. Revenues in 2014 from Centerpoint Entergy are expected to
increase approximately 2.25% from the Amended 2013 Budget. Franchise fees from
telecommunication companies are expected to decrease approximately 3.75% after
several years of decline due to on-going competition from wireless companies. There
are scheduled rate increases included in the budget for Central Arkansas Water and
Little Rock Wastewater. Central Arkansas Water announced a rate increase of
approximately 3.9% in 2013 followed by an additional 4% in 2014. In addition, Little
Rock Wastewater rates increased approximately 8% in 2013, and are scheduled to
increase 7% in 2014 and 4.75% in 2016 to comply with the terms of the Sierra Club
lawsuit to reduce sanitary sewer overflows in Little Rock. Residential customers, on
average, will experience lower rate increases of approximately 2.5% and 4.75% in
2014 and 2016 respectively.
Property Tax revenues account for approximately 14% of General Fund revenues.
Little Rock recently received its Original Charge for 2013 Property Taxes to be
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collected in 2014. The Original Charge is approximately 2.4% over last year’s value
and represents the total amount assessed on real estate and personal property for the
previous year. The 2014 Budget reflects an increase in Property Tax revenues of
approximately 1.7% from the final amended 2013 Budget. In addition, the 2014
Budget and the 2013 Amended Budget include the separate 1-mill property tax levies
dedicated for the Police and Fire Pension Plans as discussed previously. I am pleased
that overall property values in Little Rock were maintained during the recent economic
downturn. The City has not experienced the decline in values that were prevalent in
other parts of the country.
City employees have demonstrated their dedication and professionalism by providing
quality service to the citizens of Little Rock. The General Fund Budget supports 1,669
full-time equivalent (FTE) positions, a net increase of thirty (30) FTEs compared to
2013 staffing levels. The staffing additions include twenty (20) Police positions
previously funded by a grant award under the American Recovery and Reinvestment
Act COPS Program. In addition, special projects and grant awards support forty-one
(41) employees. However, approximately 100 of the budgeted General Fund positions
were vacant during 2013. This represents a significant improvement over the 152
budgeted General Fund positions that were kept vacant in 2011. With the passage of
the new sales tax, positions were filled and new positions were added in 2012 and
2013, particularly in the areas of Public Safety and Parks and Recreation. The 2014
Operating Budget expenditures include $137,290,586 in personnel cost, net of an
anticipated $5 million in savings from authorized but vacant positions. Police, Fire and
AFSCME personnel covered by labor agreements will receive a pay increase of 2.5%.
An allocation for non-uniform non-union employees of 1.5% was included in the
budget as well. Health insurance costs will increase approximately 6.4%, primarily
due to taxes and fees associated with implementation of the Affordable Care Act. The
City is increasing its emphasis on wellness programs again in 2014 to mitigate cost
increases. Employees that do not take advantage of wellness initiatives will share in
the cost of future health insurance benefit increases. Benefit changes approved by
the State Legislature increased pension costs slightly for Fire and Police uniformed
personnel. Pension costs increased from 18.58% to 19.58% of payroll for uniformed
Fire personnel and from 15.23% to 16.23% of payroll for uniformed Police personnel.
In addition, the City merged administration of the closed local Police Pension Fund
with the LOPFI plan which will require an additional contribution of 9.2% of payroll for
uniformed Police personnel. However, the additional contribution will not result in any
additional cost to the City. The dedicated 1-mill property tax levy, annual City sales
tax contribution of $500,000, and other dedicated fines and fees are expected to fund
the 9.2% contribution. Pension costs for Court Clerks decreased slightly from 14.88%
to 14.74%. The City will implement a new defined benefit pension plan for non-uniform
personnel on January 1, 2014. The plan resulted from a yearlong review of options to
improve the retirement plan for non-uniform employees. The City will contribute 9%
of salary to the plan, matched by employee contributions of 4.5%. Vacant positions
are budgeted at the mid-range salary for the position’s grade, providing some budget
flexibility in the recruiting process. Overall, with the changes in salary, benefits and
the increased number of filled positions, the 2014 Budget for personnel cost will
increase approximately 3% from the Amended 2013 Budget. The adjustment to
include the pension contributions to the closed Police and Fire Pension Plans funded
by the separate property tax levies and State Turnback Funds is responsible for an
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increase in personnel cost of approximately 10% from the Original 2013 Budget. The
total increase in personnel cost from the Original 2013 Budget is approximately 13%.
Fleet and fuel costs are projected to decrease approximately $65,000 in 2014. The
2014 Fuel Budget is based on estimated unleaded and diesel fuel per gallon prices
averaging $3.20 and $3.25 respectively. The cost per gallon of fuel has decreased
with the utilization of new fuel blends. In addition, the City is opening a new
Compressed Natural Gas Station (CNG) in 2014 and is converting some vehicles to
CNG. The budget for fleet parts increased due to the aging fleet. However, as the
annual fleet replacement schedule is resumed with the passage of the sales tax, repair
and maintenance cost will be reduced.
The City’s 2014 allocation for outside agency contributions increased by
approximately $326,000 compared with the 2013 Budget. The increase is associated
with the Central Arkansas Transit Authority (CATA) Bus and River Rail operations.
Two (2) new routes were added to bus service in 2013 servicing the John Barrow
Neighborhood and Southwest Little Rock, including Pulaski Technical College.
The City issued a $7.7 million short-term financing note in 2013 to accelerate public
safety projects associated with the three-eighths (3/8)-cent sales tax for capital
projects. Short-term financing notes are authorized under Amendment No. 78 to the
Arkansas Constitution for the acquisition, construction and installation of real and
tangible personal property having an expected useful life of more than one (1)-year.
The notes are repaid over a period of five (5) years from general revenues. The
principal portion of the new note will be repaid with proceeds of the three-eighths (3/8)-
cent sales tax for capital projects. The interest payments are included in the General
Fund Budget. Debt service payments will actually decrease by approximately
$1,073,000 in 2014 due to the retirement of previous short-term notes in 2013.
Funding of the Pulaski County Jail was continued in order to provide space for
prisoners in accordance with the City’s primary focus on Public Safety. In addition, an
extra allocation is available from a $20 local jail fine to contribute toward operations
for expanded Pulaski County Jail space if needed.
A Homeless Services Task Force was established in 2006 to end chronic
homelessness within our community. The City of North Little Rock has partnered with
Little Rock to financially fund the Day Resource Center. The services provided to
homeless individuals and families are focused on finding housing, job referral, and
case management services, medical, dental and psychiatric assistance. In addition,
both municipalities are working with the various support groups in Central Arkansas
as part of the on-going process to address the needs of homeless individuals and
families. In 2011, the City acquired a building on Confederate Boulevard in Little Rock
for a permanent Day Resource Center. The new Jericho Way Day Resource Center
opened in 2013 with continued operating support from Little Rock and North Little
Rock.
The City is appropriating approximately $5.5 million for Children, Youth and Family
Programs, including youth employment, skills center funding, and re-entry
programming in 2014 as part of City’s emphasis to foster and enhance youth and
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community development. City Staff will continue to work with community groups,
neighborhood associations, the faith-based community and other groups to ensure
resources are targeted appropriately. In addition, the City implemented an in-house
pilot program to train and utilize disadvantaged persons for the construction and
maintenance of sidewalks in conjunction with the skills center and re-entry
programming. The program was extremely successful and will be continued in 2014.
In addition, Community Programs Staff is evaluating other opportunities for expansion
of the program utilizing entry-level positions available in other City Departments.
The 2014 Budget includes a contingency allocation of $1 million or .54% of General
Fund revenues. The City of Little Rock’s Management Team will continue to manage
the City in a sound and fiscally prudent manner while striving to deliver the quality and
level of service that the citizens of Little Rock expect with available resources.
2013 Accomplishments
Little Rock Police Department: The Little Rock Police Department was awarded its
sixth certificate of accreditation with the Commission on Accreditation for Law
Enforcement Agencies on March 21, 2013, for an additional three (3) years. This
designation is afforded to premiere agencies and has established the Little Rock
Police Department as a model for other agencies seeking accreditation. Construction
began on the 12
th
Street Station with a completion date of mid-July 2014. The 311
System has greatly increased service delivery to the citizens of Little Rock. A total of
103,581 requests for City services were made utilizing the 311 System. Recruit School
#78 graduated thirty-five (35) new Officers in December 2013. Five (5) Certified Officer
Accelerated Training (C.O.A.T.) Schools were held during 2013, with fourteen (14)
Officers graduating. An additional seven (7) C.O.A.T. applicants are currently being
processed. A Recruit School is scheduled to begin mid-July 2014, with twenty-five
(25) recruits.
Little Rock Fire Department: The Little Rock Fire Department continued to provide
quality services, responding to more than 27,042 fire and emergency calls during
2013. The Department purchased land in Southwest Little Rock for construction of
Fire Station #24. Funding for the land was provided through the City of Little Rock tax
initiative. Divisions of the Fire Department instituted numerous staff training and
outreach programs during 2013 including a Staff Certification Program for Fire
Apparatus Engineers for existing driver operators and Firefighters; instituted a “Don’t
Text and Drive Campaign”; implemented a mass smoke alarm distribution campaign,
distributing smoke alarms to targeted demographics including the elderly and low
income; and conducted service user surveys to evaluate the services of the
organization through performance measures. Other programs instituted by Fire
Administration include the launch of the Junior Fire Cadet Program in conjunction with
the Little Rock School District; implementation of mandatory Post Incident Analysis of
all large loss incidents; and established a Fire Department Chaplaincy Program with
two (2) civilian volunteers to assist the organization when needed. The Department
continues to move forward with the accreditation process through the Center for Public
Safety Excellence.
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Public Works: In 2013, Public Works Operations Staff responded to 7,528 service
requests via the 311 service request system and swept 20,773 curb-miles of streets.
Additionally, staff administered a successful Sidewalk Program, utilizing
disadvantaged citizens re-entering the workforce. Civil Engineering oversaw the
commencement of the first year in a three (3)-year cycle of Capital Sales Tax and
2013 Capital Bond Issuance projects.
Fleet Services: The City of Little Rock Fleet Services Department once again
achieved national recognition as being among the 100 Best Fleets of North America.
Additionally, Fleet Services has continued to work towards opening a publicly
accessible compressed natural gas fueling station, with an anticipated opening of
March 2014.
Finance: The Finance Department obtained the Government Finance Officers
Association (GFOA) Certification of Recognition for the 2013 Budget Presentation and
the GFOA Certificate for Excellence in Financial Reporting for the 2012
Comprehensive Annual Financial Report. The Grants Division provided assistance to
other Departments, component units, non-profit organizations, and neighborhood
organizations of the City in training, writing, obtaining, monitoring and reporting on
grant awards. In addition, the Department provided quarterly reporting to the Little
Rock Citizens Evaluation of New Tax (LRCent) Committee on the status of the new
local sales tax and on progress toward completion of capital projects authorized under
the three-eighths (3/8)-cent portion of the tax. In July 2013, the Finance Department
facilitated the issuance of $58,105,000 in Limited Tax General Obligation Capital
Improvement Bonds for street and drainage improvements. The City’s purchasing
manual was updated and the Finance Department web page was updated to include
helpful documents and detailed tax and revenue information for residents.
Information Technology: The Information Technology Department completed a
Business Continuity Plan for the Department; developed and implemented a web-
based system for the City Impound; assisted the Police Department with the 911
phone system upgrade; and replaced 220 of the oldest PCs on the City network which
benefited all City Departments.
Human Resources: The Human Resources Department implemented a new Defined
Pension Plan for non-uniform employees. Pension enrollment meetings were held for
all impacted employees where employees were notified of their election options. A
new Fair Labor Standards Act questionnaire was developed for employees to
complete as part of their annual performance evaluation. A salary and benefits survey
was conducted. Safety programs were presented. The Department continues to
monitor the Patient Protection and Affordable Care Act (PPACA) to ensure compliance
for the City’s health insurance program that is offered to full-time employees.
Parks & Recreation: The Centre at University Park was opened and dedicated on
September 28, 2013. The new facility is a 15,000 square-foot state of the art building
that includes a webinar room, art and crafts room, ceramics and kiln area, game room,
classrooms, aerobics and dance room with hardwood floor, conference room,
kitchenette, office space, and banquet hall with audio/visual teleconferencing access.
The opening of this facility returned to the community a valuable resource that was
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lost when it burned in October of 2009. In addition, the Hindman Golf Course greens
were reconstructed and reseeded in 2013. The clubhouse was renovated and the
course was reopened to the public on September 12, 2013. The Department launched
its first “on-line” registration opportunity for summer playground participants at all
seven (7) of its playground sites. This program was very successful with over 97% of
the 1,200 program participants enrolling via on-line registration. Little Rock Parks and
Recreation improved its website to make it more user friendly and descriptive of
programs and activities. The Little Rock Marathon increased its participation by 10%.
Parks were maintained at a Class “B” level (mowed one (1) time every ten (10) work
days). In 2013, the Department’s “Lights on After School” initiative was again
successful in that it continues to promote the critical importance of quality afterschool
programs in the lives of children, their families and community. In addition, a detailed
inspection of every playground within the parks system was conducted.
Planning & Development: The Planning & Development Department coordinated
with the City Beautiful Commission and the Board of Directors on the adoption of an
important amendment to the Landscape and Tree Protection Ordinance related to the
Tree Restoration for Environmental Enhancement Fund. In addition, a package of
changes to the Future Land Use Plan for the area south of Interstate 30 was approved.
Nominations of the Dunbar Neighborhood and several structures around the City were
made and listed on the National Register of Historic Places. The 2012 International
Existing Building Code was adopted by the Board of Directors.
Little Rock Zoo: The Little Rock Zoo enjoyed a successful year in 2013. A baby
penguin and four (4) new tiger cubs were born. These births contributed to the survival
of critically endangered species. In addition, the Zoo had strong guest attendance
numbers. The Zoo continued implementation of the 2011 tax referendum by hiring
new staff and completing important new capital projects including an upgrade to the
tiger exhibit, upgrades to Zoo horticulture, a new shade structure for the great ape
exhibit, and other general improvements. The Zoo also acquired two (2) new residents
– elephants Sophie and Babe – from the Niabi Zoo.
Housing & Neighborhood Programs: During 2013, the Housing and Neighborhood
Programs Department hired one (1) Senior Code Enforcement Officer and twelve (12)
new Code Officers. In addition, a training program was implemented for new and
existing Code Officers. Little Rock Animal Village adoptions totaled 1,618 animals
during the year, which is an increase of eighty-nine (89) animals from the previous
year. The Animal Village opened the City’s third dog park during 2013.
Community Programs: The Community Programs Department initiated planning for
Departmental allocation of new revenues in collaboration with community partners.
The Department implemented a summer jobs training component for returning youth
to learn money management skills. In addition, the Department provided staff support
for the Children, Youth, and Families Commission in strategic planning and recognized
all area National Merit Scholars with a reception, program, and certificates.
Vehicle Storage Facility:
The City of Little Rock Vehicle Storage Facility amended
the Little Rock Transportation Code, addressing taxicab driver permit applicants with
a felony conviction in their background. Additionally, staff from the Vehicle Storage
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Facility attended the International Association for Transportation Regulators (IATR)
conference.
Budget Polices and the Budget Process: The General Fund goal was to set aside
the greater of $10,000,000, or 10%, of General Fund revenues in the Restricted
Reserve on or before December 31, 2005; however, due to economic conditions in
the past few years, the City has been unable to meet this goal. The restricted reserve
is currently $9,418,000. The 2014 Budget includes a contingency allocation of an
additional $1 million. Following the completion of the 2013 audit, the City’s
management team will determine the amount of funds available to increase the
reserve, with the intent of gradually increasing the Restricted Reserve to achieve 10%
of General Fund revenues in the next few years.
2014 Goals
In coordination with the Mayor and City Board, staff will have a major focus on
completion of projects funded by the new sales tax. Staff will constantly track,
monitor, and report on capital projects funded by the sales tax and will
maintain a detailed tracking system on the City’s web site, www.littlerock.org.
Continue quarterly review meetings with the Little Rock Citizen Evaluation of
New Tax (LRCent) Committee to review expenditures and progress toward
initiatives supported by the new one (1)-cent sales tax. These meetings will
provide an additional layer of accountability and transparency to tax payers.
Continue to implement the street and drainage sales tax plan for the 2013 -
2015 infrastructure improvement cycle established per the Ward community
meetings.
Complete construction and open the 12
th
Street Police Station.
Execute an agreement to lease or purchase property for the West Little Rock
Police Substation.
Complete the land acquisition for the Southwest Little Rock Fire Station.
Continue the development of the West Central Community Center.
Continue the City’s focus on economic development and sustainability.
Provide $5.5 million in funding for Children, Youth, and Family Programs,
including youth employment, skills center funding, and reentry programming,
to continue the program to train and employ disadvantaged persons for
construction and maintenance of sidewalks, and to explore opportunities for
expanding the program to include other entry level positions.
Continue progress on street and drainage improvement projects funded by the
2013 Capital Improvement Bonds.
Implement the new non-uniform defined benefit pension plan.
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Economic Outlook
The primary challenge facing the City of Little Rock remains providing a full
complement of services that satisfy the needs of citizens in the midst of an uncertain,
but stabilizing, economic climate. While the economic recovery continues, it remains
slow and fragile.
The latest comparative figures for the City of Little Rock show unemployment at 6.7%,
compared with a U.S. average of 7.4%, according to data from the United Stated
Department of Labor, seasonally adjusted for local figures by Metroplan. The United
States economy gained jobs in 2012 and 2013. Per Metroplan, the region’s 2.5%
employment growth from 2012 to 2013 was it strongest showing in over a decade,
bringing total employment to 346,800 - still below its prerecession total of 347,900 in
2008. Little Rock remains a vital employment center, accounting for approximately
53% of all jobs, by place of work, in the Little Rock-North Little Rock metropolitan
areas. A large component of the City’s workforce is in the areas of health care,
education and public administration. These sectors are less vulnerable to national
employment trends.
Little Rock’s housing markets have felt the boom-bust cycle of recent years; however,
they have been less severely affected than the U.S. average. Single-family housing
permits began to rebound during 2012, moving to an average of thirty (30) monthly;
the highest level since 2008. Permits for single-family units were 353 in 2013 after
increasing to 395 in 2012 from 328 in 2011; still far below the 700-plus permits that
occurred annually 2003-2007. Multi-family housing construction slowed in 2013 to
265 units, compared with 1,022 units in 2011. However; on August 1, 2013, Moses
Tucker Real Estate announced plans to redevelop the old Arkla Gas Building in
Downtown Little Rock, converting it into upscale apartments by spring 2015. The $13
million project will be called MacArthur Commons and will include eight-four (84) units
at the corner of East Capitol and River Market Avenues.
Commercial property construction continues to show strong growth. One of the most
exciting developments is the new Bass Pro Shop that opened in Little Rock on
November 13, 2013. The 120,000 square-foot location is at Little Rock’s Gateway
Town Center, a 169-acre project at the northwest corner of Interstates 30 and 430 in
Southwest Little Rock. In addition, plans have been announced to open an outlet mall
at the same location with approximately eighty (80) retail stores, bringing
approximately 1,400 jobs to the area. Construction is expected to begin in the summer
of 2014 with an opening in 2015.
The Central Arkansas Library System opened the Hillary Rodham Clinton Children’s
Library and Learning Center on 10
th
Street in Midtown Little Rock in March 2013. The
30,000 square-foot facility includes a computer lab, greenhouse, teaching kitchen and
theater along with a collection of more than 21,000 books, DVDs and CDs. The library
was funded by a bond issue approved by voters in 2007.
Construction began on a new 72,000 square-foot, $18 million medical office building
in Midtown Little Rock in May 2013. The Midtown Medical Office Building is expected
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to be completed in May 2014. The state-of-the-art medical office will be located on
South University Avenue; an area that has been an anchor for the medical community.
In August 2013, the Little Rock City Board authorized $60 million in bonds for Dassault
Falcon Jet’s expansion at the Bill and Hillary Clinton National Airport. The French
private jet company plans to invest $60 million over the next three (3) years in
refurbishment and new construction at its finishing plant operations at Adams Field.
The new Arcade Building in the River Market opened in the fourth quarter of 2013.
The $17 million project is a joint venture between the Central Arkansas Library System
and Moses Tucker Real Estate and contains retail space, a 325-seat theater, a
restaurant and office space. The building is located at the corner of Clinton and River
Market Avenues. Dr. Bobby Roberts, Central Arkansas Library System Executive
Director, announced an agreement with the Little Rock Film Festival and its institute
to be the host facility for the nationally-acclaimed Little Rock Film Festival.
In October 2013, LM Wind Power, the Danish blade manufacturer for wind turbines,
announced that it would be adding more than 850 jobs to its U.S. manufacturing
operations, which will bring employment at its Little Rock plant to approximately 400.
“The company continues to expand significantly into next year, expecting to employ
around 1,200 people in the US in 2014,” it said. Staff is being added at factories in
Grand Forks, North Dakota and in Little Rock after Congress extended the Production
Tax Credit late last year.
Finally, in December 2013, CARTI held a ground-breaking ceremony for a new $90
million treatment facility adjacent to the Woodland Heights Retirement Community on
Riley Drive in Little Rock. The 170,000 square-foot non-profit Cancer Care Center will
offer medical, surgical and radiation oncology, diagnostic radiology, and hematology
services.
The City’s long-term outlook remains bright; most indicators continue showing
competitive advantages in the local metropolitan area. Job losses in some sectors
have been balanced, even in recession, by gains in areas with future potential. As
indicated above, economic projects are in development in all areas of the City – from
Downtown, to Midtown, Southwest Little Rock and West Little Rock.
Little Rock’s strong business environment and quality of life have been recognized by
several national publications. In July 2013, Little Rock was named “#1 of America’s
10 Great Places to Live” by Kiplinger’s Personal Finance. The rankings place an
emphasis on small and mid-size cities, considering metro areas with a population of
one million or less that have good jobs, reasonably priced homes, decent schools and
access to great health care. Little Rock is very proud of this ranking and features
some of the reasons Little Rock is a great place to live, work, and play on the cover of
this budget document.
In August, Forbes Magazine ranked Central Arkansas #32 on its list of “Best Places
for Business and Careers.” Central Arkansas is recognized for a diverse economy
and being home to companies like Stephens Inc., Windstream Corporation, Acxiom
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City of Little Rock, Arkansas 2014 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 2014 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 2014 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 2014 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 2014 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 2014 Operating Budget
THE BUDGET PROCESS
The City’s annual budget is the result of a thorough, public process. The budget
projects all receipts and disbursements, the level of governmental services to be
provided, and the method of distributing cost and services to the various
segments of the community. The budget process includes an evaluation of
community needs and reflects priorities established by the Mayor, the Board of
Directors, and the City Manager. This document serves to inform citizens and
other interested parties of the City’s service plans and overall financial condition.
The Management Team had financial planning work sessions to facilitate budget
and capital project planning. The work sessions focused on revenue outlook,
trends, revenue issues, priority expenditures, expenditure issues, capital projects
and debt for capital projects.
The financial guidelines and policies that serve as the framework for the financial
operation of City government and the basis for budget development are
contained in the financial section of the budget document.
The budget process begins with the City Manager’s assessment of the goals and
initiatives of the Mayor and the Board of Directors. A budget package prepared
by the Finance Department is then distributed to the Department Heads. The
package includes general guidelines from the City Manager with budget reports
that include initial revenue projections, prior year expenditures, current year
budgeted and actual year-to-date expenditures for all operating accounts, a
listing of capital projects, and a budget preparation calendar. The Internal
Services Fund provides projected vehicle maintenance, labor and fuel charges to
each user Department. Budget staff provides training sessions on the budget
process and budget monitoring throughout the year as needed. Departments
submit their expenditure requests to the Finance Department for an initial review.
The City Manager conducts internal budget hearings with each Department to
review goals, projected revenues and expenditures, desired program initiatives,
and capital needs. Budget requests are modified based on the results of the
internal hearings. The Finance Department compiles all of the requests and
recommends any additional modifications necessary in order for the City
Manager to present a balanced budget recommendation to the Mayor for review.
The City Manager reviews program funding recommendations with the Mayor
and discusses associated revenue and expenditure assumptions in detail. The
Mayor and City Manager make modifications to reflect any additional priorities.
The Mayor and City Manager then conduct a budget workshop with the Board of
Directors.
The Capital Budget is usually prepared to present the capital expenditures
planned for each of the next five (5) fiscal years. In 2011, citizens passed a
three-eighths (3/8)-cent sales tax for capital projects that went into effect on
January 1, 2012. The sales tax is a temporary tax with a ten (10) year sunset,
2021. Planned capital expenditures from the sales tax are discussed in detail in
the capital section of the budget document. In addition, capital needs funded by
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City of Little Rock, Arkansas 2014 Operating Budget
grants or bond issues were considered. The total costs of each project and the
sources of funding required to finance each project are estimated. The FY14
capital requests are considered separately by fund.
The Mayor and City Manager conduct public hearings to obtain input from
citizens. The City utilizes a program-based budget approach for the funds under
the direction of the City Manager.
Approved departmental expenditures are categorized by organizational service
delivery unit, and then presented as costs associated with specific service
programs. This approach allows citizens and their elected representatives to
evaluate the costs of various services, to relate those costs to units of service
delivered, and to set service priorities.
The adopted budget ordinance provides for budgetary control at an
organizational level. Budgets cannot be exceeded without the approval of the
Mayor and Board of Directors.
City Management monitors achievement of program service objectives as
follows:
In regular meetings with department directors by the City Manager and his
staff;
In quarterly reports to the City Manager by department directors;
Through management information system reporting;
Through regular public presentations to the Mayor and Board of Directors;
and
Through meetings with neighborhood organizations and other citizen groups.
Employees are evaluated annually in relation to the performance of designated
services.
Following adoption of the budget, revenue and expenditure budget accounts are
established based on the organizational structure of the City’s financial system.
Monthly and quarterly reports of revenues, expenses and remaining balances are
prepared for the Mayor, Board of Directors and City management. The
availability of budgeted funds is verified before a purchase order is issued, which
then encumbers the budget account.
The 2014 Budget
The 2014 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
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City of Little Rock, Arkansas 2014 Operating Budget
department’s direction and responsibility(s). Each department’s objectives
are linked to the dollar figure budget needed to achieve the goal.
Objectives
Objectives are the specific functions, which must be performed in order for
a program to satisfy or fulfill a particular goal.
Objectives are typically expressed in measurable terms so that a
program’s level of accomplishment or performance can be evaluated at
the end of the fiscal year.
The calendar for developing the 2014 budget follows:
June-July Mayor and City Manager provided general direction
and guidance for operating and capital budgets.
August
Initial revenue and personnel costs budgets were
developed, programs were assessed; new
programs and capital budget requests were
submitted.
September Initial health insurance rates and Waste Disposal
rates were assessed.
September-October Department Heads prepared and submitted budget
requests to the 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
change from prior year. The Board adopted the
2014 budget ordinance.
AMENDING THE BUDGET
During the fiscal year, adjustments may be required to refine the original adopted
budget. The approved budget may be amended as required in accordance with
the following protocol:
Revenues are reviewed monthly and quarterly and the projections are
adjusted if warranted.
Adjustments to transfer approved expenditure budgets from one organization
to another may be approved by the City Manager if less than $50,000.
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City of Little Rock, Arkansas 2014 Operating Budget
Transfers in excess of $50,000 must be submitted to the Mayor and Board of
Directors for approval.
Requests for new appropriations may be submitted by the City Manager or at
the direction of the Mayor or Board of Directors and require authorization by
Board Ordinance.
Funds Controlled by the City Governing Body
The Funds controlled are:
General;
Special Revenue;
Capital;
Proprietary;
Fiduciary; and
Debt Service.
The City’s financial policies are included in the Financial Structure section.
BUDGET POLICIES
The City has developed and utilized budget policies that are designed to
accomplish specific objectives and enhance the budget process. These policies
include:
The 2014 budget includes 2.5% salary increases for members of the
American Federation of State, County and Municipal Employees (AFSCME),
the International Association of Fire Firefighters and the Fraternal Order of
Police positions, based on agreements in effect under current multi-year
contracts. In addition, step and grade increases are budgeted in accordance
with union agreements. All three (3) union agreements will open for
negotiation in 2014. Salary increases for non-uniform non-union employees
were budgeted at 1.5%.
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 utilized to reduce personnel budget
allocations by department.
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City of Little Rock, Arkansas 2014 Operating Budget
The City utilized the in-house payroll system to aid in the development of the
budget for salary and benefit costs for 2014. Salary changes are budgeted
for each employee group to occur at the required time, such as on the
employee’s anniversary date or at the first of the year.
The Fleet Services Internal Service Fund develops an expenditure budget for
vehicle maintenance and fuel which is allocated to departments based on the
number of assigned vehicles, service history, and prior fuel utilization. These
allocations are not subject to change by the user departments.
Departments are given specific budget parameters by the Mayor and City
Manager. Departments are not allowed to alter calculated personnel cost or
Internal Service Fund budget allocations, and are instructed not to make
funding requests for new programs without the approval of the City Manager.
For 2014, departments were authorized to implement priority needs and
specific new positions supported by the new sales tax, which became
effective in 2012, and to fill key vacant positions.
These policies are designed to ensure that operating departments have sufficient
funds available to support programs and services, and to mitigate the need for
budget reductions during the course of the fiscal year.
OTHER BUDGET PROCEDURES
The preceding budget procedures apply to the development of the budget for the
General Government operating funds, and the Proprietary, Special Projects and
Capital funds. These funds are under the direct guidance of the City Manager.
Special Revenue funds’ budgets are developed internally by staff. The
Community Development Block Grant and Home Investment Partnership
Program budgets are developed in accordance with specific federal guidelines,
including obtaining required citizen input, and are then presented to the Mayor
and Board of Directors for final approval.
Component Units develop separate budgets for approval by their respective
governing board or commission. These budgets do not require submission to the
Mayor and Board of Directors for approval. The Fiduciary retirement funds do
not prepare formal budgets, but the associated boards of trustees regularly
monitor the income and expenditures of the funds.
Annual budgets are adopted on a basis consistent with accounting principles
generally accepted in the United States of America. Governmental funds are
reported using the current financial resources measurement focus and the
modified accrual basis of accounting.
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City of Little Rock, Arkansas 2014 Operating Budget
The basis of budgeting and the basis of accounting used in the City’s audited
financial statements are the same. Appropriations lapse at the end of the each
year. With this measurement focus, only current assets and liabilities are
generally included on the balance sheet. The statement of net assets presents
increases (revenues and other financing sources) and decreases (expenditures
and other financing uses) in spendable resources. General capital asset
acquisitions are reported as expenditures and proceeds of general long-term
debt are reported as other financing sources. Under the modified accrual basis
of accounting, revenues are recognized when both measurable and available.
The City considers revenues reported in the governmental funds to be available if
they are collectible within sixty days after year-end. Principal revenue sources
considered susceptible to accrual include taxes, federal funds, local funds and
investment earnings. Other revenues are considered to be measurable and
available only when cash is received by the City. Expenditures are recorded
when the related fund liability is incurred, except for principal and interest on
general long-term debt, claims and judgments, compensated absences and
obligations for workers’ compensation, which are recognized as expenditures
when payment is due. Pension expenditures are recognized when amounts are
due to a plan.
Operating revenues and expenditures are distinguished from non-operating
items. Operating revenues and expenses generally result from providing
services in connection with the principal ongoing operation of the fund. All
revenues and expenses not meeting this definition are reported as non-operating
items.
Appropriations for special projects are budgeted as transfers to a special project
fund by the Mayor and Board of Directors. These allocations are used to finance
specific initiatives or capital projects. Special projects are generally multi-year
activities that are monitored until they are fully expended or repealed by the
Mayor and Board of Directors. At the conclusion of the special initiative or capital
project, remaining allocations are returned to the fund that originally sponsored
the project. Examples of such projects are allocations for homeless prevention,
weed lot maintenance, demolition, and the Mayor’s Youth Council.
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Financial Structure
City of Little Rock, Arkansas 2014 Operating Budget
LITTLE ROCK'S FINANCIAL STRUCTURE
Cities in Arkansas derive the authority to levy taxes and provide municipal
services from state statutes. Little Rock's financial structure utilizes fund
accounting, which separates the transactions related to various City functions
and is designed to demonstrate compliance with legal requirements. Certain
funds are controlled directly by the City's governing body, and other funds are
controlled by agencies whose assets are owned by the City but are operated by
independent boards and commissions.
FUNDS CONTROLLED BY THE CITY GOVERNING BODY
GENERAL FUND OPERATIONS
General Fund - This fund is the primary operating fund of the City and
receives all revenues not required to be accounted for separately. In
addition to funding traditional government services, annual appropriations
are made from this fund for various outside agencies that perform services
on behalf of the City, for special projects, and for limited capital
improvements.
SPECIAL REVENUE FUNDS
Street Fund This is a special revenue fund that includes income
restricted for street and traffic maintenance, such as the state gasoline tax
turnback and one-half of a County road property tax. In addition, parking
meter revenues and reimbursement for street cuts are reported in this
fund.
Special Projects Fund This fund receives certain revenues and
appropriations for special purposes or for capital projects that generally
have a multi-year life.
Infrastructure Fund This fund was established to commit resources for
the improvement and maintenance of the City's infrastructure.
Emergency 9-1-1 Fund This fund contains fees derived from telephone
charges, which are restricted to uses related to operating and equipping
the City’s 9-1-1 Emergency Operations Center.
Grant Fund Various Federal and State Grant awards are reported in
this fund.
Community Development Block Grant Fund This fund receives
Federal block grants utilized primarily for street improvements, community
services and community center operations.
Neighborhood Housing Special Project Fund (NHSP) This fund
accounts for the proceeds of the Community Development Block Grant
Section 108 Guaranteed Loan Program and other City funds that are
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City of Little Rock, Arkansas 2014 Operating Budget
utilized to provide housing and housing assistance to qualifying citizens
and to improve neighborhood infrastructure.
Home Investment Partnership Fund (HIPP) – This fund accounts for
funding received from the U.S. Department of Housing and Urban
Development to provide housing or housing assistance to qualifying
citizens, to improve neighborhood streets and drainage, and to operate
community health and recreation facilities.
CAPITAL PROJECT AND RELATED DEBT SERVICE FUNDS
Capital Projects Funds – These funds are derived from the proceeds of
general obligation bonds issued to finance major capital improvement
projects.
Debt Service Funds – The City’s general obligation bonds are primarily
supported by separate property tax levies approved by taxpayers for the
sole purpose of retirement of debt issued to fund capital improvement and
construction projects. The proceeds of the special levies are accounted for
in debt service funds to be utilized for this purpose. There is a
corresponding capital projects fund established for each bond issue.
2002 Capital Improvement Junior Lien Revenue Bonds – The 2002
Capital Improvement Junior Lien Revenue Bonds were issued to finance
infrastructure improvements, the costs of issuance, and to fund the debt
service reserve. These bonds are special obligation bonds of the City,
payable solely from the franchise fees collected from public utilities for the
privilege of utilizing the streets, highways and other public places within
the City.
2007 Capital Improvements – The 2007 Capital Improvements were
issued to finance the advance refunding of the City’s Capital Improvement
Revenue Bonds 1998A and to pay the cost associated with the issuance
of the Series 2007 Bonds. The Series 2007 bonds are not general
obligations of the City but are special obligations payable solely from the
revenue received by the City from all franchise fees charged to public
utilities for the privilege of utilizing the City’s streets and right-of-way.
The remaining funds available from interest earnings on these bond funds
have been allocated to the South Loop and Scott Hamilton Drive
improvements.
2008 and 2009 Central Library and Improvement Fund – 2008 and
2009 Library Improvement and Refunding Bonds are limited obligations
payable through 2028. The Library Bonds were issued to finance the cost
of acquiring, constructing, and equipping capital improvements to the
public City libraries operated by the Central Arkansas Library System.
The bonds are limited tax obligations payable solely from a 1.0 mill annual
ad valorem tax.
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City of Little Rock, Arkansas 2014 Operating Budget
2009A Capital Improvement Construction Revenue Bonds and 2009B
Parks and Recreation Capital Improvement Refunding Bonds – The
2009A Parks and Recreation Bonds were issued for the purposes of
acquiring, constructing, equipping, renovating, expanding, and
refurbishing certain zoo, parks, and recreation facilities of the City. The
2009B Bonds were issued for the purpose of refunding the City’s
outstanding Capital Improvement Revenue Bonds (Parks and Recreation
Projects) Series 1998A. The 2009A and 2009B bonds are special
obligations, payable solely from the revenues derived from the operation
and ownership of the zoo, parks and recreation facilities.
2012 Library Construction and Refunding Bonds – 2012 Library
Construction and Refunding Bonds are limited obligations payable through
2032. The Library Bonds were issued to finance the cost of acquiring,
constructing, and equipping capital improvements to the public City
libraries operated by the Central Arkansas Library System, to refund the
City’s outstanding Library Construction Bonds, Series 2004A, and to pay
the cost of issuance of the bonds. The bonds are limited tax obligations
payable solely from a 0.9 mill annual ad valorem tax.
2012 – 2021 Capital Project Fund – This fund is utilized to account for
the proceeds of a 3/8 cent ten (10) year capital tax to fund new Fire and
Police facilities, a new emergency communications system, economic
development infrastructure, including improvements at the port and
funding for a technology park, capital improvements for Park and Zoo
facilities, information technology projects and vehicles and equipment.
The tax went into effect on January 1, 2012 and expires on December 31,
2021.
2013 Limited Tax General Obligation Capital Improvement Bonds
On September 11, 2012, citizens of Little Rock approved the issuance of
$105 million in Capital Improvement Bonds for the purpose of Street and
Drainage infrastructure improvements. The 2013 Limited Tax General
Obligation Capital Improvement Bonds in the amount of $58,105,000
issued July 24, 2013 were the first series of bonds issued for this purpose.
These bonds are secured by all proceeds derived from a separate 3-mills
annual ad valorem tax on all taxable real and personal property located
within the City.
Short Term Financing – This fund accounts for proceeds of Short Term
Financing notes issued to acquire capital equipment, building
improvements and vehicles for the City.
PROPRIETARY FUNDS
Waste Disposal Enterprise Fund – This fund was created to account for
the City’s solid waste system.
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City of Little Rock, Arkansas 2014 Operating Budget
Vehicle Storage Facility Enterprise Fund This fund was created to
account for vehicle storage services.
Fleet Internal Services Fund This fund utilizes a flexible budget and
derives its revenues primarily from charges to the organizations in the
General, Street and Waste Disposal Funds that utilize City vehicles.
Parking Garage Fund This fund was created to account for the
operations of the City’s two parking garage facilities.
FIDUCIARY FUNDS CONTROLLED BY BOARDS OF TRUSTEES
An important benefit for City employees is a retirement plan. The City
participates in the state Local Police and Fire Retirement System (LOPFI) for all
uniformed employees hired after January 1, 1983. In addition, the following
retirement funds are administered by the City and cover substantially all other
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 a dedicated property tax levy and
insurance turn back revenues. Each fund has a Board of Trustees that directs its
activities.
DISCRETE COMPONENT UNITS CONTROLLED BY INDEPENDENT
BOARDS & COMMISSIONS
Certain City services are similar to activities found in the private sector. They
have independent Boards and Commissions. They are budgeted and accounted
for as separate entities and are expected to maintain revenues sufficient to meet
their operating costs, debt service requirements, and system replacement and
maintenance needs. These funds are listed below but are not included in this
document:
Little Rock Wastewater Utility
Little Rock National Airport
Little Rock Advertising & Promotion Commission
Little Rock Port Authority
Metropolitan Emergency Medical Services (MEMS)
Central Arkansas Transit Authority
Arkansas Museum of Discovery
Arkansas Arts Center
Central Arkansas Library System
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City of Little Rock, Arkansas 2014 Operating Budget
Oakland Fraternal Cemetery
Mt. Holly Cemetery
These funds receive income from service charges that are used to operate their
respective facilities and to retire revenue bonds. In addition, a 2% Hotel, Motel,
and Restaurant Sales Tax provides the main source of income to operate the
Advertising and Promotion Commission and retire its bonds. Boards and
Commissions, which derive their authority from specific statutes, operate all of
these funds. However, the City's governing body must authorize rate changes,
approve all bond issues, and approve appointments to the Boards and
Commissions. Therefore, these funds are required to be reported as discrete
component units of this entity by GASB Statement Number 39.
OTHER FUNDS NOT INCLUDED
This budget does not include the Little Rock School District, which is governed by
its own elected board, is a separate taxing authority, issues its own debt and
receives no City subsidy. Certain other funds are not included, because they
operate under independent Boards, have other sources of revenue, and are in no
way dependent upon the Mayor and Board of Directors. These are as follows:
Little Rock Housing Authority
Little Rock Residential Housing and Facilities Board
Central Arkansas Water
In addition, this budget does not include certain multiple-employer, defined
benefit pension funds administered and trusted by independent fiduciary agents
and in which certain employees participate.
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City of Little Rock, Arkansas 2014 Operating Budget
FISCAL POLICIES
A. OPERATING MANAGEMENT
1. All City departments share in the responsibility of meeting policy goals
and ensuring long-term financial health. Future service plans and
program initiatives will be developed to reflect current policy directives,
projected resources, and future service requirements. When appropriate,
sunset provisions will be incorporated into service plans.
2. The budget process is intended to weigh all competing requests for City
resources. Requests for new, on-going programs made outside the
budget process are discouraged.
3. Addition of personnel will only be requested to meet program initiatives
and policy directives; after service needs have been thoroughly examined
and it is substantiated that additional staffing will result in increased
revenue or enhanced operating efficiencies. To the extent feasible,
personnel cost reductions will be achieved through attrition.
4. Current expenditures will be funded by current revenues. A diversified
and stable revenue system will be developed to protect programs from
short-term fluctuations in any single revenue source.
5. No revenues will be dedicated for specific purposes, unless required by
law or generally accepted accounting practices (GAAP). All non-restricted
revenues will be deposited in the General Fund and appropriated by the
budget process.
6. User fees and charges will be examined annually to ensure that all direct
and indirect costs of provided the service are recovered. If the user fees
and charges required to meet full cost recovery would be excessively
burdensome on citizens receiving service, the Board of Directors may
approve a lower user fee or charge. The City will consider market rates
and charges levied by other public and private organizations for similar
services in establishing rate and fee structures. Rate adjustments for
Waste Disposal will be based on five-year financial plans.
7. Grant funding should be considered to leverage City funds. Inconsistent
and /or fluctuating grants and trusts should not be utilized to fund on-
going programs. Programs financed with grant moneys will be budgeted
in separate cost centers, and the service program will be adjusted to
reflect the level of available funding. In the event of reduced grant
funding, City resources will be substituted only after all program priorities
and alternatives are considered during the budget process.
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City of Little Rock, Arkansas 2014 Operating Budget
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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City of Little Rock, Arkansas 2014 Operating Budget
B. CAPITAL MANAGEMENT
1. A five-year Capital Improvement Plan will be developed biannually and
updated annually, including anticipated funding sources. Capital
improvement projects are defined as infrastructure or equipment
purchases or construction that results in a capitalized asset costing more
than $5,000 and having a useful life (depreciable life) of two years or
more.
2. The capital improvement plan will include, in addition to current operating
maintenance expenditures, an adequate level of funding for maintenance
and replacement to ensure that all capital facilities and equipment are
properly maintained.
3. Proposed capital projects will be reviewed by a cross-departmental team
for accurate costing (design, capital, and operating), congruence with City
objectives and prioritized by a set of deterministic criteria. Financing
sources will be sought for the highest-ranking projects.
4. Capital improvement operating budget impacts will be coordinated with the
development of the annual operating budget. Future operating,
maintenance, and replacements costs will be forecast as part of the City’s
five-year financial forecast.
5. The City will provide for a minimum of 5% of internal, pay-as-you-go
financing for its Capital Improvement Program. Funding may come from
fund balance reserves or any other acceptable means.
C. DEBT MANAGEMENT
1. The City will seek to maintain and, if possible, improve its current bond
rating in order to minimize borrowing costs and preserve access to credit.
The City will encourage and maintain good relations with financial bond
rating agencies and will follow a policy of full and open disclosure.
2. Future bond issue proposals will be accompanied by an analysis showing
how the new issue combined with current debt impacts the City’s debt
capacity and conformance with City debt policies.
3. The City will attempt to develop a coordinated communication process
with all other overlapping jurisdictions with which it shares a common tax
base concerning collective plans for future debt issues.
4. Financing shall not exceed the useful life of the asset being acquired.
5. The City will not use long-term debt to finance current operations.
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City of Little Rock, Arkansas 2014 Operating Budget
6. The general policy of the City is to establish debt repayment schedules
that utilize level annual principal and interest payments.
7. The general policy of the City is to fund capital projects (infrastructure)
with new, dedicated streams of revenue or voter approved debt. Nonvoter
approved debt may be utilized when a dedicated revenue source other
than general revenue can be identified to pay debt service expenses.
8. Interest earnings on bond proceeds will be limited to 1) funding the
improvements specified in the authorizing bond ordinance, or 2) payment
of debt service on the bonds.
9. Utility rates will be set to ensure debt service coverage exceeds the bond
indenture requirement of 125%.
10. The City shall comply with the Internal Revenue Code Section 148 –
Arbitrage Regulation for all tax-exempt debt issued. An annual estimate
of arbitrage liabilities shall be obtained by the City and recorded on the
financial statements.
11. The City shall use a competitive bidding process in the sale of debt unless
the use of a negotiated process is warranted due to market timing
requirements (refunding), or a unique pledge or debt structure. The City
will award competitively issued debt on a true interest cost (TIC) basis.
12. Proceeds from debt will be utilized in accordance with the purpose of the
debt issue. Funds remaining after the project is completed will be used in
accordance with the provisions stated in the bond ordinance that
authorized the issuance of the debt.
D. RESERVES
1. All fund designations and reserves will be evaluated annually for long-term
adequacy and use requirements in conjunction with development of the
City’s five-year financial plan.
2. The General Fund goal is to set aside $10,000,000 or 10% of General
Fund revenues; whichever is greater, into a restricted reserve fund on or
before December 31, 2005; however, due to economic conditions in the
past several years, the City has not been able to meet their goal. The
restricted reserve is currently $9,418,000. The Board will consider
increasing the restricted reserve based on the net operating results for
2013.
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City of Little Rock, Arkansas 2014 Operating Budget
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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City of Little Rock, Arkansas 2014 Operating Budget
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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City of Little Rock, Arkansas 2014 Operating Budget
OTHER AGENCIES
One of the budget policies of the Mayor and Board of Directors is to support
other agencies that provide services that are important to the City’s quality of life.
The agencies that have had City support are described below:
The Arkansas Arts Center, located in a City park, serves the metropolitan area
and provides a wide array of cultural opportunities to citizens of all ages and
interests.
The Arkansas Museum of Discovery enhances the cultural opportunities in the
metropolitan area and has opened a new and larger museum located in the River
Market District. This project was funded through the FUTURE-Little Rock
initiatives and is now funded from the General Fund.
The Central Arkansas Transit Authority provides vital public transportation
services to much of the metropolitan area.
The Chamber of Commerce promotes economic growth in the area, and is
another example of a public and private partnership.
The County Health Department provides health care services to residents of
both the City and Pulaski County. The State Health Department directs its
operations. It receives operating support from both the City and the County.
The Downtown Partnership promotes economic development for downtown
and is an example of public and private partnerships to promote growth and
development of the City.
Metroplan is a council of local governments that provides area-wide
transportation and other planning and support services to its members.
County Regional Detention Center serves the residents of both the city and
Pulaski County. The County directs its operations and it receives operating
support from the City and all jurisdictions in the County.
The Pulaski Area Geographical Information System (PAGIS) is a consortium
of local government agencies formed by inter-local agreement to develop,
maintain and distribute spatial based information and graphics. Current members
are Little Rock, North Little Rock, Pulaski County, Central Arkansas Water and
Wastewater commissions of Little Rock and North Little Rock.
Jack Stephens Youth Golf Academy/First Tee of Central Arkansas has a
nine (9) hole regulation golf course, nine (9) hole par three (3) golf course, full-
service driving range, practice putting green, full-service pro shop and indoor
teaching facilities. The purpose of this facility is to impact the lives of the young
people of Central Arkansas by providing educational programs that build
character, instill life-enhancing values and promote healthy choices through the
game of golf. The facility provides an opportunity for Central Arkansas’ young
people to learn the game of golf regardless of their socio-economic status.
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City of Little Rock, Arkansas 2014 Operating Budget
The Metro Little Rock Alliance (MLRA) is a twelve-county economic
development organization representing a population of a million people including
Little Rock. It was created to cultivate regional growth and prosperity throughout
the area. The MLRA markets Little Rock and the region’s strengths and
advantages to prospective companies and the site location consultants for the
purpose of attracting investment and creating jobs.
Little Rock City Beautiful Commission promotes public interest in the general
improvement of the appearance of the City of Little Rock; and establishes,
subject to the Little Rock City Board of Directors approval, regulations of
aesthetic quality for public and private lands and improvements.
APPROPRIATIONS FOR OTHER AGENCIES
2012 2013 2014
Budget Budget Budget
Central Arkansas Transit $7,511,153 $8,208,468 $8,534,663 (1)
County Regional Detention Center 1,463,000 1,050,000 1,050,000 (2)
Arkansas Arts Center 300,000 400,000 400,000
Museum of Discovery 200,000 200,000 200,000
Chamber of Commerce 200,000 200,000 200,000
Metroplan 163,484 178,042 178,042
Downtown Partnership 125,000 160,000 160,000
PAGIS 129,500 136,300 135,800
Metro Little Rock Alliance 100,000 100,000
First Tee 99,750 91,500 91,500 (3)
County Bond Payment 56,100 56,100 56,100
St. Vincent 25,381 25,381 25,381
LR City Beautiful Commission 2,500 2,500 2,500
Total $10,275,868 $10,808,291 $11,133,986
(1) The 2013 CATA increase is primarily associated with two new routes.
(2) The allocation for the jail was reduced by $413,000 to the amount required by the
interlocal agreement. The difference in jail funding is made up by the allocation of
funds available from a $20 local jail fine available for supplemental jail funding.
(3) Adjusted to reflect the consolidation of the Park and Zoo Enterprise Funds with
the General Fund and includes the Golf contribution to First Tee.
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Budget Summaries
City of Little Rock, Arkansas 2014 Operating Budget
BUDGET SUMMARIES
The following schedules summarize the audited 2012 operating results, the 2013
unaudited operating results, and the approved 2014 operating budget. The
summaries are organized by fund type in a manner that is consistent with the
fund organization in the City’ audited Comprehensive Annual Financial Report.
The first summary is a recap of the entire six (6) fund types included in this
section. Each of the fund types is summarized and individual fund budget
schedules follow the summaries. The amounts reflected in this section are
accumulated as follows: individual fund totals are included in the fund type
summary; then the fund type summary totals are included in the recap of all fund
types.
The City is required by state statue to budget for the administration, operation,
maintenance and improvements of various City operations. The budget is
designed to demonstrate compliance with legal requirements. Other funds
submitted are for informational purposes only.
The Cities operating budget includes the following funds:
General;
Street;
Fleet Services;
Vehicle Storage Facility;
Waste Disposal;
Parking Garages;
The six types of funds included in the budget summaries are:
General;
Special Revenue;
Capital;
Proprietary;
Fiduciary; and
Debt Service.
For more information regarding these funds, see the section entitled FINANCIAL
STRUCTURE.
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Enterprise Fleet
General Street Funds Services Total
Revenues
General Property Taxes $26,548,180 $5,473,400 $32,021,580
Sales Taxes 96,123,400 96,123,400
License and Permits 10,509,200 291,240 10,800,440
Intergovernmental 6,353,442 12,100,000 18,453,442
Charge for Service 11,245,641 10,000 20,834,217 13,144,531 45,234,389
Fines and Fees 3,199,875 0 3,199,875
Utility Franchise Fees 27,686,000 27,686,000
Investment Income 50,000 5,000 10,100 65,100
Miscellaneous 767,900 50,000 450 818,350
Transfers In 1,780,892 1,725,296 0 3,506,188
Total Revenues 184,264,530 19,363,696 21,136,007 13,144,531 237,908,764
Expenditures
Personnel 137,290,586 9,983,570 5,994,339 3,686,321 156,954,816
Supplies and Material 6,403,155 1,176,055 1,713,850 6,694,650 15,987,710
Repairs and Maintenance 6,796,658 2,784,328 3,165,484 249,875 12,996,345
Contractual 20,914,528 2,890,856 5,101,066 2,399,642 31,306,092
Closure/Post Closure 247,945 247,945
Capital Outlay 380,000 1,680,000 2,060,000
Depreciation and Amortization 2,306,200 105,200 2,411,400
Debt Service 1,323,343 737,900 2,061,243
Transfers Out 11,156,260 848,887 1,934,459 13,939,606
Total Expenditures 184,264,530 19,363,696 21,201,243 13,135,688 237,965,157
Net Change in Fund Balance 00(65,236) 8,843 (56,393)
Fund Balances - Beginning 18,374,206 3,600,174 15,984,256 2,332,682 $40,291,318
Fund Balances - Ending $18,374,206 $3,600,174 $15,919,020 $2,341,525 $40,234,925
2014 Operating Funds Budget Summaries
This presentation includes restricted reserves of $9,418,000 in the General Fund.
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
$180,000,000
$200,000,000
General
Fund
Street Fund Enterprise
Funds
Fleet
Services
Fund
Revenues
Expenditures
Return to Table of Contents
Police
$67,200,859
36.47%
All Other
$23,397,750
12.70%
Property
Taxes
$26,548,180
14.41%
Utility
Franchises
$27,686,000
15.03%
Sales Taxes
$96,123,400
52.17%
Transfers
$11,156,260
6.05%
General
Government
$20,296,290
11.01%
Fire
$45,774,586
24.84%
Uses of Funds
for 2014
Sources of Funds
for 2014
FY 2014 GENERAL FUND
Parks &
Recreation
$9,739,691
5.29%
All Other
$23,608,043
12.81%
Zoo
$6,488,801
3.52%
Licenses &
Permits
$10,509,200
5.70%
Return to Table of Contents
INTERNAL DEBT
GENERAL SPECIAL CAPITAL ENTERPRISE SERVICE FIDUCIARY SERVICE
FUNDS REVENUES PROJECTS FUNDS FUND FUNDS FUNDS
2012
REVENUES: 196,082,270$ 39,633,877$ 61,899,058$ 24,319,986$ 11,732,606$ 34,019,862$ 31,150,221$
EXPENDITURES: 195,599,930 40,410,520 31,347,931 21,295,584 11,622,523 28,389,047 30,210,264
REVENUES OVER (UNDER)
EXPENDITURES 482,340 (776,643) 30,551,127 3,024,402 110,083 5,630,814 939,957
BEGINNING FUND BAL. 26,008,156 10,594,449 16,495,598 13,535,123 2,472,599 172,189,782 19,641,764
ENDING FUND BAL. 26,490,496$ 9,817,806$ 47,046,724$ 16,559,523$ 2,582,682$ 177,820,596$ 20,581,722$
2013
REVENUES: 200,733,159$ 33,238,619$ 85,931,375$ 20,586,264$ 12,616,069$ 37,190,403$ 21,073,296$
EXPENDITURES: 192,844,806 34,834,404 34,135,027 21,161,533 12,866,069 72,973,792 21,470,896
REVENUES OVER (UNDER)
EXPENDITURES 7,888,353 (1,595,786) 51,796,348 (575,269) (250,000) (35,783,389) (397,600)
BEGINNING FUND BAL. 26,490,496 9,817,807 47,046,724 16,559,525 2,582,682 177,820,596 20,581,721
ENDING FUND BAL. 34,378,849$ 8,222,021$ 98,843,072$ 15,984,256$ 2,332,682$ 142,037,207$ 20,184,121$
2014
REVENUES: 184,264,530$ 19,363,696$ -$ 21,136,007$ 13,144,531$ -$ -$
EXPENDITURES: 184,264,530 19,363,696 - 21,201,243 13,135,688 - -
REVENUES OVER (UNDER)
EXPENDITURES - - - (65,236) 8,843 - -
BEGINNING FUND BAL. 34,378,849 8,222,021 98,843,072 15,984,256 2,332,682 142,037,207 20,184,121
ENDING FUND B
AL. 34,378,849$ 8,222,021$ 98,843,072$ 15,919,020$ 2,341,525$ 142,037,207$ 20,184,121$
CITY OF LITTLE ROCK
BUDGET SUMMARY BY FUND TYPE
FOR YEARS 2012 - 2014
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2012 (1) 2013 (1) 2014
GENERAL FUND
REVENUES: 180,242,907$ 180,889,549$ 184,264,530$
EXPENDITURES: 186,408,597 180,889,549 184,264,530
REVENUES OVER (UNDER)
EXPENDITURES (6,165,690) - -
BEGINNING FUND BALANCE 24,539,896 18,374,206 18,374,206
ENDING FUND BALANCE 18,374,206$ 18,374,206$ 18,374,206$
SPECIAL PROJECTS & SEIZED MONEY FUND
REVENUES: 15,839,363$ 19,843,610$ -$
EXPENDITURES: 9,191,332 11,955,257 -
REVENUES OVER (UNDER)
EXPENDITURES 6,648,031 7,888,353 -
BEGINNING FUND BALANCE 1,468,260 8,116,291 16,004,644
ENDING FUND BALANCE 8,116,291$ 16,004,644$ 16,004,644$
TOTAL BEGINNING FUND BALANCE 26,008,156$ 26,490,496$ 34,378,849$
TOTAL REVENUES 196,082,270 200,733,159 184,264,530
TOTAL EXPENDITURES 195,599,930 192,844,806 184,264,530
TOTAL ENDING FUND BALANCE 26,490,496$ 34,378,849$ 34,378,849$
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
2012 - 2014
The sources of operating revenue and the trends affecting them are discussed in the section of the
budget titled REVENUES. The details of the operating budget by department and by service program
are contained in the section of the budget titled EXPENDITURES. The transfers out primarily consist
of appropriations for special projects and appropriations for the FUTURE Little Rock and new sales
tax initiatives.
(1) Numbers have been adjusted to reflect the consolidation of the River Market, Golf, Fitness and
Aquatics Center, and Zoo Enterprise Funds with the General Fund.
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2012 2013 2014
STREET
REVENUES: 15,473,721$ 17,594,796$ 19,363,696$
EXPENDITURES: 15,696,875 17,594,796 19,363,696
REVENUES OVER (UNDER)
EXPENDITURES (223,154) -
BEGINNING FUND BALANCE 3,823,328 3,600,174 3,600,174
ENDING FUND BALANCE 3,600,174$ 3,600,174$ 3,600,174$
SPECIAL PROJECT - STREET
REVENUES: 891,445$ 608$ -$
EXPENDITURES: 744,997 31,955 -
REVENUES OVER (UNDER)
EXPENDITURES 146,448 (31,347) -
BEGINNING FUND BALANCE 26,535 172,984 141,636
ENDING FUND BALANCE 172,984$ 141,636$ 141,636$
SPECIAL PROJECTS
REVENUES: 3,827,393$ 5,203,925$ -$
EXPENDITURES: 4,100,939 7,193,819 -
REVENUES OVER (UNDER)
EXPENDITURES (273,546) (1,989,895) -
BEGINNING FUND BALANCE 4,779,850 4,506,304 2,516,410
ENDING FUND BALANCE 4,506,304$ 2,516,410$ 2,516,410$
SPECIAL REVENUE FUND
S
OPERATING BUDGET
2012 - 2014
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2012 2013 2014
SPECIAL REVENUE FUND
S
OPERATING BUDGET
2012 - 2014
INFRASTRUCTURE
REVENUES: 98$ 48$ -$
EXPENDITURES: 15,098 43,177 -
REVENUES OVER (UNDER)
EXPENDITURES (15,000) (43,129) -
BEGINNING FUND BALANCE 57,862 42,862 (267)
ENDING FUND BALANCE 42,862$ (267)$ (267)$
EMERGENCY 911
REVENUES: 1,304,933$ 1,346,603$ -$
EXPENDITURES: 1,304,932 1,249,162 -
REVENUES OVER (UNDER)
EXPENDITURES 1 97,441 -
BEGINNING FUND BALANCE 2,822 2,823 100,264
ENDING FUND BALANCE 2,823$ 100,264$ 100,264$
GRANTS
REVENUES: 11,282,752$ 6,476,251$ -$
EXPENDITURES: 11,282,753 6,160,628 -
REVENUES OVER (UNDER)
EXPENDITURES (1) 315,623 -
BEGINNING FUND BALANCE (2,396) (2,397) 313,226
ENDING FUND BALANCE (2,397)$ 313,226$ 313,226$
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2012 2013 2014
SPECIAL REVENUE FUND
S
OPERATING BUDGET
2012 - 2014
CDBG/HIPP/NHSP
REVENUES: 6,853,535$ 2,616,388$ -$
EXPENDITURES: 7,264,926 2,560,867 -
REVENUES OVER (UNDER)
EXPENDITURES (411,391) 55,521 -
BEGINNING FUND BALANCE 1,906,448 1,495,057 1,550,578
ENDING FUND BALANCE 1,495,057$ 1,550,57
8
$ 1,550,57
8
$
TOTAL BEGINNING FUND BALANCE 10,594,44
9
$ 9,817,807$ 8,222,021$
TOTAL REVENUES 39,633,877 33,238,619 19,363,696
TOTAL EXPENDITURES 40,410,52
0
34,834,40
4
19,363,69
6
TOTAL ENDING FUND BALANCE 9,817,80
6
$ 8,222,021$ 8,222,021$
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2012 2013 2014
1988 CAPITAL IMPROVEMENTS
REVENUES: 42$ 285$ -$
EXPENDITURES: 862,827 -
REVENUES OVER (UNDER)
EXPENDITURES (862,785) 285 -
BEGINNING FUND BALANCE 862,500 (285) -
ENDING FUND BALANCE (285)$ $ -$
1998 CAPITAL IMPROVEMENTS
REVENUES: 1,515$ 2,261$ -$
EXPENDITURES: 251,300 344,667 -
REVENUES OVER (UNDER)
EXPENDITURES (249,785) (342,406) -
BEGINNING FUND BALANCE 978,603 728,818 386,411
ENDING FUND BALANCE 728,818$ 386,411$ 386,411$
2009A PARKS AND RECREATIO
N
REVENUES: 84$ 54$ -$
EXPENDITURES: 574,472 71,431
REVENUES OVER (UNDER)
EXPENDITURES (574,388) (71,377) -
BEGINNING FUND BALANCE 1,125,399 551,011 479,634
ENDING FUND BALANCE 551,011$ 479,634$ 479,634$
CAPITAL FUND
S
OPERATING BUDGET
2012 - 2014
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2012 2013 2014
CAPITAL FUND
S
OPERATING BUDGET
2012 - 2014
1995 CAPITAL IMPROVEMENTS
REVENUES:
EXPENDITURES: 9
REVENUES OVER (UNDER)
EXPENDITURES (9)
BEGINNING FUND BALANCE 9
ENDING FUND BALANCE $
SHORT TERM FINANCING
REVENUES: 4,824$ 238$ -$
EXPENDITURES: 5,369,573 468,051 -
REVENUES OVER (UNDER)
EXPENDITURES (5,364,749) (467,812) -
BEGINNING FUND BALANCE 5,652,966 288,217 (179,595)
ENDING FUND BALANCE 288,217$ (179,595)$ (179,595)$
2004 CAPITAL IMPROVEMENTS
REVENUES: 72$ 35$ -$
EXPENDITURES: 37,611 3,636 -
REVENUES OVER (UNDER)
EXPENDITURES (37,539) (3,601) -
BEGINNING FUND BALANCE 47,863 10,324 6,723
ENDING FUND BALANCE 10,324$ 6,723$ 6,723$
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2012 2013 2014
CAPITAL FUND
S
OPERATING BUDGET
2012 - 2014
2008 & 2009 LIBRARY IMPROVEMENT BOND
REVENUES: 739$ 12$ -$
EXPENDITURES: 7,825,671 3,137 -
REVENUES OVER (UNDER)
EXPENDITURES (7,824,932) (3,125) -
BEGINNING FUND BALANCE 7,828,258 3,326 201
ENDING FUND BALANCE 3,326$ 201$ 201$
2012 LIBRARY IMPROVEMENT BOND
REVENUES: 25,825,092$ 14,913$ -$
EXPENDITURES: 2,805,176 11,357,071 -
REVENUES OVER (UNDER)
EXPENDITURES 23,019,916 (11,342,158) -
BEGINNING FUND BALANCE - 23,019,916 11,677,758
ENDING FUND BALANCE 23,019,916$ 11,677,758$ 11,677,758$
2012-2021 CAPITAL IMPROVEMENTS FUND (3/8 CENT SALES TAX
)
REVENUES: 36,066,689$ 25,355,130$
EXPENDITURES: 13,621,292 17,673,303 -
REVENUES OVER (UNDER)
EXPENDITURES 22,445,398 7,681,827 -
BEGINNING FUND BALANCE - 22,445,398 30,127,225
ENDING FUND BALANCE 22,445,398$ 30,127,225$ 30,127,225$
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2012 2013 2014
CAPITAL FUND
S
OPERATING BUDGET
2012 - 2014
2013 CAPITAL IMPROVEMENT FUND (STREETS AND DRAINAGE
)
REVENUES: 60,558,445$
EXPENDITURES: 4,213,731 -
REVENUES OVER (UNDER)
EXPENDITURES 56,344,715 -
BEGINNING FUND BALANCE - 56,344,715
ENDING FUND BALANCE $ 56,344,715$ 56,344,715$
TOTAL CAPITAL BEGINNING BALANC
E
16,495,598$ 47,046,724$ 98,843,072$
TOTAL REVENUES 61,899,058 85,931,375 -
TOTAL EXPENDITURE
S
31,347,931 34,135,027 -
TOTAL CAPITAL ENDING FUND BALANC
E
47,046,724$ 98,843,072$ 98,843,072$
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2012 2013 2014
V
EHICLE STORAGE FACILITY
REVENUES: 1,359,763$ 1,346,960$ 1,348,840$
EXPENDITURES: 1,284,946$ 1,293,257 1,321,150
REVENUES OVER (UNDER)
EXPENDITURES 74,817$ 53,703 27,690
BEGINNING NET POSITION (789,269)$ (714,452) (660,749)
ENDING NET POSITION (714,452
)
$ (660,749
)
$ (633,059
)
$
WASTE DISPOSAL
REVENUES: 20,004,167$ 17,194,521$ 17,563,000$
EXPENDITURES: 16,574,747$ 17,688,470 17,655,926
REVENUES OVER (UNDER)
NET INCOME (LOSS) 3,429,420$ (493,949) (92,926)
BEGINNING NET POSITION 13,406,998$ 16,836,418 16,342,469
ENDING NET POSITION 16,836,41
8
$ 16,342,46
9
$ 16,249,54
3
$
PARKING GARAGE
S
REVENUES: 2,140,903$ 2,044,783$ 2,224,167$
EXPENDITURES: 1,861,831$ 2,179,806 2,224,167
REVENUES OVER (UNDER)
NET INCOME (LOSS) 279,072$ (135,023) -
BEGINNING NET POSITION 158,487$ 437,559 302,536
ENDING NET POSITION 437,559$ 302,536$ 302,536$
ENTERPRISE FUNDS
OPERATING BUDGET
2012 - 2014
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2012 2013 2014
ENTERPRISE FUNDS
OPERATING BUDGET
2012 - 2014
RECREATION SERVICES
REVENUES: 815,153$ -$ -$
EXPENDITURES: 1,574,060 - -
REVENUES OVER (UNDER)
EXPENDITURES (758,907)$ - -
BEGINNING NET POSITION 758,907 - -
ENDING NET POSITION -$ -$ -$
TOTAL ENTERPRISE BEGINNING NET POSITION 13,535,12
3
$ 16,559,52
5
$ 15,984,25
6
$
TOTAL REVENUES 24,319,98
6
20,586,26
4
21,136,00
7
TOTAL EXPENDITURES 21,295,58
4
21,161,53
3
21,201,24
3
TOTAL ENTERPRISE ENDING NET POSITION 16,559,52
5
$ 15,984,25
6
$ 15,919,02
0
$
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2012 2013 2014
FLEET INTERNAL SERVICE FUND
REVENUES: 11,732,606$ 12,616,069$ 13,144,531$
EXPENDITURES: 11,622,523 12,866,069 13,135,688
REVENUES OVER (UNDER)
EXPENDITURES 110,083 (250,000) 8,843
BEGINNING NET POSITION 2,472,599 2,582,682 2,332,682
ENDING NET POSITION 2,582,682$ 2,332,682$ 2,341,52
5
$
FLEET INTERNAL SERVICE FUND
OPERATING BUDGET
2012 - 2014
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2012 2013 2014
+
POLICE PENSION & RELIEF FUND
ADDITIONS: 11,064,477$ 7,693,973$ -$
DEDUCTIONS: 12,085,958 55,278,866 -
NET INCREASE (DECREASE) (1,021,481) (47,584,893) -
NET POSITION HELD IN TRUST, BEGINNING 48,606,374 47,584,893 (0)
NET POSITION HELD IN TRUST, ENDIN
G
47,584,89
3
$ (0)$ (0)$
FIRE PENSION & RELIEF FUND
ADDITIONS: 12,099,167$ 13,964,243$ -$
DEDUCTIONS: 11,569,002 11,176,236 -
NET INCREASE (DECREASE) 530,165 2,788,007 -
NET POSITION HELD IN TRUST, BEGINNING 70,545,313 71,075,478 73,863,484
NET POSITION HELD IN TRUST, ENDIN
G
71,075,47
8
$ 73,863,48
4
$ 73,863,48
4
$
NON-UNIFORM DEFINED BENEFIT FUN
D
ADDITIONS: 2,524,224$ 3,633,030$ -$
DEDUCTIONS: 1,692,940 1,769,238 -
NET INCREASE (DECREASE) 831,284 1,863,792 -
NET POSITION HELD IN TRUST, BEGINNING 9,158,879 9,990,163 11,853,955
NET POSITION HELD IN TRUST, ENDIN
G
9,990,16
3
$ 11,853,95
5
$ 11,853,95
5
$
FIDUCIARY FUND
S
OPERATING BUDGET
2012 - 2014
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2012 2013 2014
FIDUCIARY FUND
S
OPERATING BUDGET
2012 - 2014
NON-UNIFORM DEFINED CONTRIBUTIO
N
ADDITIONS: 6,291,537$ 8,746,491$ -$
DEDUCTIONS: 2,944,365 3,720,032 -
NET INCREASE (DECREASE) 3,347,172 5,026,460 -
NET POSITION HELD IN TRUST, BEGINNING 35,309,536 38,656,708 43,683,168
NET POSITION HELD IN TRUST, ENDIN
G
38,656,70
8
$ 43,683,16
8
$ 43,683,16
8
$
401 (A) PENSION FUND
ADDITIONS: 1,804,612$ 2,791,794$ -$
DEDUCTIONS: 80,176 1,010,136 -
NET INCREASE (DECREASE) 1,724,436 1,781,659 -
NET POSITION HELD IN TRUST, BEGINNING 7,033,794 8,758,230 10,539,889
NET POSITION HELD IN TRUST, ENDIN
G
8,758,23
0
$ 10,539,88
9
$ 10,539,88
9
$
HEALTH MANAGEMENT TRUST FUN
D
ADDITIONS: 235,845$ 360,871$ -$
DEDUCTIONS: 16,606 19,284 -
NET INCREASE (DECREASE) 219,239 341,587 -
NET POSITION HELD IN TRUST, BEGINNING 1,535,886 1,755,125 2,096,712
NET POSITION HELD IN TRUST, ENDIN
G
1,755,12
5
$ 2,096,712$ 2,096,712$
TOTAL NET POSITION BEGINNIN
G
172,189,78
2
$ 177,820,59
6
$ 142,037,20
7
$
TOTAL ADDITION
S
34,019,86
2
37,190,40
3
-
TOTAL DEDUCTION
S
28,389,04
7
72,973,79
2
-
TOTAL NET POSITION ENDIN
G
177,820,59
6
$ 142,037,20
7
$ 142,037,20
7
$
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2012 2013 2014
2002 CIP JUNIOR LIEN BONDS
REVENUE: 317,741$ 318,643$ -$
EXPENDITURES: 318,699 320,298 -
NET INCREASE (DECREASE) (958) (1,655) -
BEGINNING FUND BALANCE 20,788 19,830 18,176
ENDING FUND BALANCE 19,830$ 18,176$ 18,176$
2004 IMPROVEMENT BONDS DEBT SERVICE
REVENUE: 11,991,543$ 1,665$ -$
EXPENDITURES: 11,587,780 12,140,829 -
NET INCREASE (DECREASE) 403,763 (12,139,164) -
BEGINNING FUND BALANCE 11,735,401 12,139,164
ENDING FUND BALANCE 12,139,16
4
$ $ $
2004 LIBRARY IMP. BONDS DEBT SERVICE
REVENUE: 9,619,017$ -$
EXPENDITURES: 11,859,386 -
NET INCREASE (DECREASE) (2,240,369) - -
BEGINNING FUND BALANCE 2,240,369 - -
ENDING FUND BALANCE $ -$ -$
DEBT SERVICE FUNDS
OPERATING BUDGET
2012 - 2014
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2012 2013 2014
DEBT SERVICE FUNDS
OPERATING BUDGET
2012 - 2014
2007 CAPITAL IMP. REVENUE REFUNDING BON
D
REVENUE: 1,438,391$ 1,436,485$ -$
EXPENDITURES: 1,438,438 1,436,300 -
NET INCREASE (DECREASE) (47) 185 -
BEGINNING FUND BALANCE 19,693 19,646 19,831
ENDING FUND BALANCE 19,646$ 19,831$ 19,831$
2008 LIBRARY IMPROVEMENT BOND
REVENUE: 3,787,764$ 3,610,548$ -$
EXPENDITURES: 4,502,966 3,912,055 -
NET INCREASE (DECREASE) (715,202) (301,507) -
BEGINNING FUND BALANCE 4,907,781 4,192,579 3,891,072
ENDING FUND BALANCE 4,192,57
9
$ 3,891,072$ 3,891,072$
2009 PARKS & REC CAPITAL IMPROVEMENT BON
D
REVENUE: 1,906,934$ 1,308,844$ -$
EXPENDITURES: 502,995 1,307,778 -
NET INCREASE (DECREASE) 1,403,939 1,066 -
BEGINNING FUND BALANCE 717,732 2,121,671 2,122,737
ENDING FUND BALANCE 2,121,671$ 2,122,737$ 2,122,737$
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2012 2013 2014
DEBT SERVICE FUNDS
OPERATING BUDGET
2012 - 2014
2012 LIBRARY IMPROVEMENT BONDS
REVENUE: 2,088,831$ 3,498,679$ -$
EXPENDITURES: - 2,042,898 -
NET INCREASE (DECREASE) 2,088,831 1,455,781 -
BEGINNING FUND BALANCE
2,088,831 3,544,612
ENDING FUND BALANCE 2,088,831$ 3,544,612$ 3,544,612$
2013 CAPITAL IMPROVEMENT BONDS
REVENUE: 10,898,431$ -$
EXPENDITURES: 310,738 -
NET INCREASE (DECREASE) 10,587,694 -
BEGINNING FUND BALANCE 10,587,694
ENDING FUND BALANCE $ 10,587,69
4
$ 10,587,69
4
$
TOTAL BEGINNING FUND BALANCE 19,641,76
4
$ 20,581,721$ 20,184,121$
TOTAL REVENUES 31,150,221 21,073,29
6
TOTAL EXPENDITURES 30,210,26
4
21,470,89
6
TOTAL ENDING FUND BALANCE 20,581,721$ 20,184,121$ 20,184,121$
Return to Table of Contents
City of Little Rock, Arkansas 2014 Operating Budget
2014 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 2014 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 2014 General Fund budget is $1,000,000 or approximately
0.54% 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. The City anticipates an addition to the restricted reserve in
2014. The City Board of Directors will evaluate funds available following
completion of the 2013 annual audit to determine the amount of the addition.
Citizen demand for services has outpaced revenue growth in the last few years.
The citizens of Little Rock approved a one (1)-cent sales tax on September 13,
2011 to allow the City to fill critical positions that have remained vacant for many
years and to provide the City the opportunity to move forward with much needed
programs and capital projects. All of the services and projects funded by the tax
increase support the City goals and objectives centered on public safety,
economic development, basic City services, infrastructure, and quality of life.
The tax increase, which went into effect January 1, 2012, includes a permanent
5/8-cent operations tax and a 3/8-cent ten (10)-year capital tax, that will provide
additional Police Officers, more Code Enforcement Officers, new Fire and Police
facilities and a new emergency communications system. The capital projects
supported by the new 3/8-cent tax are highlighted in the Capital Improvements
section of the Budget Document. The ongoing operating expenses associated
with the capital projects are supported by the 5/8-cent portion of the new sales
Return to Table of Contents
City of Little Rock, Arkansas 2014 Operating Budget
tax. These expenses are phased into the five year forecast based on the
anticipated completion schedule of the capital projects. Consistent with the first
“must do” goal of the Mayor and Board of Directors, the City plans to complete 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 2014 – 2018. The
forecast for 2014 – 2018 is a planning tool used for the projections. The Mayor
and Board of Directors have only approved the 2014 budget. However, the
Board is committed to providing financial stability in order to maintain critical
programs.
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FY14 FY15 FY16 FY17 FY18
Adopted
Projected Projected Projected Projected
General Fund
Beginning Fund Balance $18,374,206 $19,374,206 $20,374,206 $21,374,207 $22,374,207
Plus: Est. Revenue 184,264,530 188,871,143 193,592,922 197,851,966 202,303,635
Less: Est. Expenses
General Administrative 20,296,290 20,958,661 21,411,591 20,327,009 20,732,208
Board of Directors 338,527 345,298 352,203 359,248 366,433
Community Programs 388,081 395,843 403,759 411,835 420,071
City Attorney 1,769,774 1,805,169 1,841,273 1,878,098 1,915,660
District Court - First Division 1,392,505 1,420,355 1,448,762 1,477,737 1,507,292
District Court - Second Division 1,247,286 1,272,232 1,297,676 1,323,630 1,350,102
District Court - Third Division 627,185 639,729 652,523 665,574 678,885
Finance 3,136,992 3,199,732 3,263,726 3,329,001 3,395,581
Human Resources 1,632,677 1,665,331 1,698,637 1,732,610 1,767,262
Information Technology 4,358,322 4,445,488 4,534,398 4,625,086 4,717,588
Planning and Development 2,583,968 2,635,647 2,688,360 2,742,128 2,796,970
Housing & Neighborhood Programs 5,673,839 5,787,316 5,903,062 6,021,123 6,141,546
Public Works 1,166,482 1,189,812 1,213,608 1,237,880 1,262,638
Parks & Recreation 9,739,691 9,934,485 10,133,175 10,335,838 10,542,555
River Market 1,208,675 1,232,849 1,257,505 1,282,656 1,308,309
Golf 2,187,165 2,230,908 2,275,526 2,321,037 2,367,458
Jim Dailey Fitness & Aquatics 896,565 914,496 932,786 951,442 970,471
Zoo 6,488,801 6,618,577 6,750,949 6,885,968 7,023,687
Fire ** 45,774,586 46,918,951 48,185,762 50,949,478 52,121,316
Police 67,200,859 68,880,880 70,740,664 72,155,478 73,887,209
Vacancy Reductions (5,000,000) (5,000,000) (5,000,000) (5,000,000) (5,000,000)
Transfers Out (including contingency) 11,156,260 11,379,385 11,606,973 11,839,112 12,030,396
184,264,530 188,871,143 193,592,921 197,851,966 202,303,636
Anticipated contingency/reserve 1,000,000 1,000,000 1,000,000 1,000,000 1,020,000
Ending Fund Balance * $19,374,206 $20,374,206 $21,374,207 $22,374,207 $23,394,207
Reserve Requirement
(10% of Revenues) $18,426,453 $18,887,114 $19,359,292 $19,785,197 $20,230,364
* 2014 Ending Fund Balance includes an estimated restricted reserve of $10,500,000.
** Includes the addition of 24 fire fighters in 2017 with the opening of the Southwest Little Rock Fire Station which is
scheduled for completion in 2016.
Street Fund
Beginning Balance $3,600,174 $3,600,174 $3,797,684 $3,999,144 $4,204,633
Plus: Est. Revenue 19,363,696 19,750,970 20,145,989 20,548,909 20,959,887
Less: Est. Expenses 19,363,696 19,553,460 19,944,529 20,343,420 20,750,288
Ending Balance $3,600,174 $3,797,684 $3,999,144 $4,204,633 $4,414,232
Reserve Requirement
(10% of revenue) $1,936,370 $1,975,097 $2,014,599 $2,054,891 $2,095,989
2014 - 2018 FORECAST
CITY OF LITTLE ROC
K
Return to Table of Contents
FY14 FY15 FY16 FY17 FY18
Adopted
Projected Projected Projected Projected
2014 - 2018 FORECAST
CITY OF LITTLE ROC
K
Fleet Fund
Beginning Net Position $2,332,682 $2,341,525 $2,350,545 $2,359,745 $2,369,129
Plus: Est. Revenue 13,144,531 13,407,422 13,675,570 13,949,081 14,228,063
Less: Est. Expenses 13,135,688 13,398,402 13,666,370 13,939,697 14,218,491
Ending Net Position $2,341,525 $2,350,545 $2,359,745 $2,369,129 $2,378,701
Reserve Requirement
(10% of revenues) $1,314,453 $1,340,742 $1,367,557 $1,394,908 $1,422,806
Vehicle Storage Facility
Beginning Net Position ($660,749) ($633,059) ($591,604) ($535,976) ($465,758)
Plus: Est. Revenue 1,348,840 1,375,817 1,403,333 1,431,400 1,460,028
Less: Est. Expenses 1,321,150 1,334,362 1,347,705 1,361,182 1,374,794
Ending Net Position ($633,059) ($591,604) ($535,976) ($465,758) ($380,524)
Reserve Requirement
(10% of revenues) $134,884 $137,582 $140,333 $143,140 $146,003
Waste Disposal Fund
Beginning Net Position $16,342,469 $16,249,543 $16,221,531 $15,871,963 $16,041,501
Plus: Est. Revenue 17,563,000 17,762,719 17,834,099 17,906,181 17,978,980
Less: Est. Expenses 17,655,926 17,790,731 18,183,667 17,736,643 18,156,684
Ending Net Position $16,249,543 $16,221,531 $15,871,963 $16,041,501 $15,863,797
Reserve Requirement
(15% of revenues) $2,634,450 $2,664,408 $2,675,115 $2,685,927 $2,696,847
Parking Garages
Beginning Net Position $302,536 $302,536 $302,536 $302,536 $302,536
Plus: Est. Revenue 2,224,167 2,268,650 2,314,023 2,360,304 2,407,510
Less: Est. Expenses 2,224,167 2,268,650 2,314,023 2,360,304 2,407,510
Ending Net Position $302,536 $302,536 $302,536 $302,536 $302,536
A rate increase of $1.03 associated with recycling was implemented in 2013. No other rate increases are anticipated
during the five year forecast. Expenses reflect the reduction of debt service as bonds are retired and the capital
replacement needs including the development of a class 4 landfill cell in 2014 and regular replacement of collection
vehicles.
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Revenues
CITY OF LITTLE ROCK
2014 BUDGET SUMMARY
ALL FUNDS RESOURCES
$237,908,764
Street
Fund
8.14%
Fleet
Services
5.53%
Waste
Disposal
7.38%
General
Fund
77.45%
Vehicle Storage
Facility
.57%
Parking
Garages
.93%
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2012 2013 2013 2014 13/14 %
REVENUES: ACTUAL (1)
A
DOPTED
A
MENDED ADOPTED DIFF CHANGE
Property Taxes * $25,821,661 $18,522,800 $26,085,500 $26,548,180 $462,680 1.77%
Sales Tax 94,537,360 96,930,800 94,734,000 96,123,400 1,389,400 1.47%
Business Licenses 6,068,956 6,013,600 6,300,000 6,363,000 63,000 1.00%
Mixed Drinks 1,902,650 1,991,000 2,100,000 2,205,000 105,000 5.00%
Building, Related Permits 2,145,351 1,832,000 1,946,800 1,941,200 (5,600) -0.29%
Insurance Pension Turnback* 5,936,255 2,424,700 6,302,545 6,353,442 50,897 0.81%
Park Revenue 341,306 354,400 354,400 425,500 71,100 20.06%
River Market 542,459 592,000 548,000 607,000 59,000 10.77%
Golf 1,121,306 1,104,300 889,700 1,128,700 239,000 26.86%
Jim Dailey Fitness and Aquatic Cente
r
529,454 539,169 464,479 540,300 75,821 16.32%
Zoo 2,978,789 3,010,000 3,010,000 3,557,041 547,041 18.17%
Airport Reimbursement 2,978,282 3,108,600 3,148,000 3,194,900 46,900 1.49%
Salary Reimbursement 911 547,117 750,000 750,000 750,000 0 0.00%
Fines and Fees 3,001,015 3,308,400 3,166,400 3,199,875 33,475 1.06%
Utility Franchises 27,421,687 27,650,100 27,486,900 27,686,000 199,100 0.72%
Interest Earnings 25,613 25,950 50,950 50,000 (950) -1.86%
All Other 2,966,225 1,770,070 1,755,865 1,810,100 54,235 3.09%
Transfers In 1,377,421 1,283,271 1,796,010 1,780,892 (15,118) -0.84%
Total General Fund 180,242,907 171,211,160 180,889,549 184,264,530 3,374,981 1.87%
Other Budgeted Funds
Street 15,473,721 17,594,796 17,594,796 19,363,696 1,768,900 10.05%
Fleet Services 11,732,606 12,616,069 12,616,069 13,144,531 528,462 4.19%
Vehicle Storage Facility 1,359,762 1,346,960 1,346,960 1,348,840 1,880 0.14%
Waste Disposal 20,004,167 17,194,521 17,194,521 17,563,000 368,479 2.14%
Parking Garages 2,140,903 2,044,783 2,044,783 2,224,167 179,384 8.77%
Total Other Budgeted Funds 50,711,159 50,797,129 50,797,129 53,644,234 2,847,105 5.60%
Total All Budgeted Funds $230,954,066 $222,008,289 $231,686,678 $237,908,764 $6,222,086 2.80%
* Includes Property Tax and Pension Turnback funds associated with the Police and Fire Pension.
CITY OF LITTLE ROC
K
2014 OPERATING REVENUE
S
(1) Numbers have been adjusted to reflect the consolidation of the RiverMarket, Golf, Fitness and Aquatics Center, and Zoo Enterprise
Funds with the General Fund.
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$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
2012 2013 2014
Sales Taxes Utility Franchises
All Other Property Taxes
General Government
Summary of Revenues
2012-2014
Return to Table of Contents
2012 2013 2014
ACTUAL (1) ADOPTED ADOPTED
GENERAL FUND
PROPERTY TAX
Property Taxes 17,097,580$ 17,100,000$ 17,567,560$
Pension Property Taxes 7,261,136 7,510,200
Homestead Taxes 1,031,193 1,062,400 1,082,600
Act 9 Industry Payment 328,538 350,400 377,820
Property Taxes LR Port Authority 103,214 10,000 10,000
Total Property Taxes 25,821,661 18,522,800 26,548,180
SALES TAX
County Sales & Use Tax 39,214,134 40,332,300 39,999,500
City Sales Tax 52,186,423 53,488,300 53,177,100
State Tax Turnback 3,136,803 3,110,200 2,946,800
Total Sales Taxes 94,537,360 96,930,800 96,123,400
BUSINESS LICENSES
General Business Licenses 6,068,956 6,013,600 6,363,000
Mixed Drinks Licenses 1,902,650 1,991,000 2,205,000
Total Business Licenses 7,971,606 8,004,600 8,568,000
PERMITS
Building & Excavation Permits 1,146,944 1,021,000 1,080,000
Electrical Permits 352,546 263,000 285,000
Plumbing Permits 301,450 254,000 255,000
HVAC Permits 269,504 224,000 244,000
Wrecker Franchise 73,663 68,600 75,000
Burn Permits 1,244 1,400 2,200
Total Permits 2,145,351 1,832,000 1,941,200
INTERGOVERNMENTAL
Insurance Turnback 2,424,675 2,424,700 2,961,500
Police and Fire Pension Insurance Turnback 3,511,580 3,391,942
Total Intergovernmental 5,936,255 2,424,700 6,353,442
POLICE SERVICES
Police Report 400,879 400,000
450,000
Fa
lse Alarm 19,990 15,000 20,000
Airport - Security Guards 1,770,614 1,859,100 1,907,400
Total Police Services 2,191,482 2,274,100 2,377,400
FIRE SERVICES
Fire Alarm Inspection 10
Airport-Fire Pro
tection 1,207,668 1,249,500 1,287,500
Fire Training Academy 447 400
Total Fire Services 1,208,126 1,249,900 1,287,500
PARK REVENUE
SWLR Community Complex 91,108 88,000 100,000
Athletics Fees 96,771 102,500 97,800
Pavilion Rental 43,309 45,500 47,000
Community Center & Miscellaneous Fees 76,582 73,700 124,100
Admissions Revenue 33,246 30,000 35,000
Miscellaneous Revenue 291 14,700 21,600
Total Park Revenue 341,306 354,400 425,500
CITY OF LITTLE ROCK
2014 OPERATING REVENUE
Return to Table of Contents
2012 2013 2014
ACTUAL (1) ADOPTED ADOPTED
CITY OF LITTLE ROCK
2014 OPERATING REVENUE
RIVER MARKET
Admissions Revenue 187,633 190,000 220,000
Space Rental 354,826 402,000 387,000
Total River Market Revenue 542,459 592,000 607,000
GOLF
Concessions Revenue 130,014 140,820 136,500
Green Fees 979,431 965,900 949,000
Equipment Rental 565,626 567,440 585,400
Merchandise Sales 86,293 89,520 94,400
Miscellaneous Revenue 20,780 17,000 24,200
Parks Contra Revenue (Debt Service) (660,838) (676,380) (660,800)
Total Golf Revenue 1,121,306 1,104,300 1,128,700
JIM DAILEY FITNESS & AQUATIC CENTER
Annual Fees 44,998 44,890 50,000
Monthly Membership 227,560 233,500 227,500
Daily Fees 106,176 108,600 106,000
Corporate Fees 229,487 240,800 229,000
Special Fees 9,555 7,600 6,100
Other 65,369 65,610 69,600
Miscellaneous 485 500 6,300
Parks Contra Revenue (Debt Svc) (154,176) (162,331) (154,200)
Total Jim Dailey Fitness & Aquatic Center 529,454 539,169 540,300
ZOO
Membership 374,193 386,000 440,000
Zoo Admissions 1,774,192 1,800,000 2,147,191
Concessions 495,366 480,300 580,000
Token Sales 179,588 210,000 146,150
Education 42,472 55,000 61,500
Special Events 174,551
164,750
200,000
Zoo Rentals 29,771 18,000 70,000
Merchandise Sales 367,601 370,000 370,000
Miscellaneous 34,146 40,000 35,300
Parks Contra Revenue (Debt Svc) (493,091) (514,050) (493,100)
Total Zoo Revenue 2,978,789 3,010,000 3,
557,041
FINES
Fines - Traffic 1,820,910 2,092,500 1,870,000
Fines - Criminal - Other 314,178 320,400 350,000
Probation Assessments 60,931 60,000 40,000
Additional Court Cost 18,992 19,000 19,500
Theft Diversion Class 100 100
Fines - Parking 241,107 244,000 335,000
Fines - Child Passenger Protection 5,225 4,000 4,300
Fines - Environmental 32,179 37,000 16,000
Fines - Animal 262,908 252,000 290,000
Fines - Other (8,063) 4,200
Drunk-O-Meter 3,848 2,500 4,000
Total Fines 2,752,315 3,031,500 2,933,000
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2012 2013 2014
ACTUAL (1) ADOPTED ADOPTED
CITY OF LITTLE ROCK
2014 OPERATING REVENUE
FEES
Rezoning Fees 42,695 43,000 50,000
Act 474 Admin Fees 362
Act 9 Admin Fees 25 4,000 4,000
Incident Report Fees 40
Civil Court Fees 74,436 74,500 70,000
Booking & Admin Fee -Pulaski County Jail 110
Education Training Fees 6,675 600
Community Service Fees 24,900 33,000 26,200
Miscellaneous Service Fees 89,457 105,800 101,675
Mobile Home Registration Fees 10,150 10,000 15,000
Animal Services (150) 6,000
Total Fees 248,700 276,900 266,875
UTILITY FRANCHISE
Entergy 13,374,422 12,977,800 12,482,000
S W Bell 863,272 737,700 710,000
Local Landline Franchise Fees 231,803 216,800 222,500
Long Dist. Franchise Fees 857,255 917,500 917,500
Centerpoint Energy 2,843,386 2,700,000 3,323,000
Central Ark Water 3,484,189 3,647,100 3,460,000
LR Waste Water 4,220,897 4,900,000 5,043,300
Fiber Optics 1,437,936 1,438,300 1,400,000
Cable TV 1,863,162 1,867,000 1,884,800
Franchise Fee Contra (1,754,635) (1,752,100) (1,757,100)
Total Utility Franchises 27,421,687 27,650,100 27,686,000
MISCELLANEOUS SERVICES
Crossing Guards-LRSD Reimbursement 493,271 455,500 572,200
911 Services Reimbursement 547,117 750,000 750,000
Total Miscellaneous Services 1,040,389 1,205,500 1,322,200
INVESTMENT INCOME
Interest Income 25,613
25,950
50,000
Total Investment Income 25,613 25,950 50,000
RENTS AND ROYALTIES
Tower Lease 280,171 317,600 258,000
Ground Leases 3,025 12,300 6,600
Amusement Park Leases 6,579 3,100 3,300
Total Rent
s and Royalties 289,775 333,000 267,900
MISCELLANEOUS INCOME
Security Deposit Rental Reimbursement
Other Reimbursement 33,559 15,300
Commission - Vending 269 300
Contributions/Donations 1,201,644 250,000 250,000
Miscellaneous Revenue 526,381 300,570 250,000
Total Miscellaneous Revenue 1,761,853 566,170 500,000
Transfers In 1,377,421 1,283,271 1,780,892
TOTAL GENERAL FUND REVENUE 180,242,907 171,211,160 184,264,530
Return to Table of Contents
2012 2013 2014
ACTUAL (1) ADOPTED ADOPTED
CITY OF LITTLE ROCK
2014 OPERATING REVENUE
STREET FUND
ST Homestead Tax 299,029 307,000 302,000
1/2 County Road Tax 4,958,256 4,930,000 5,171,400
State Gas Tax Turnback 8,748,042 10,568,500 12,100,000
Street Repair Reimbursement 10,645 10,000 10,000
Insurance Reimbursement 135,878 50,000 50,000
Interest On Investments 3,598 4,000 5,000
Transfer In 1,318,273 1,725,296 1,725,296
TOTAL STREET FUND 15,473,721 17,594,796 19,363,696
FLEET INTERNAL SERVICE FUND
Fleet Labor 2,475,551 2,612,235 2,843,569
Fuel Fees 3,206,878 3,898,944 3,671,802
Miscellaneous Sales 786,407 736,000 768,998
Motor Pool 6,688 5,585 8,932
Fleet Parts 3,173,565 3,183,926 3,372,450
Insurance Totaled 201,158 50,000 30,000
Fleet Management 664,238 974,377 1,138,780
Fleet Sublets 1,223,177 1,155,000 1,310,000
Interest on Investments 1,126
Gain/Loss on Sale of Fixed Assets (6,182) 2
TOTAL FLEET INTERNAL SERVICE FUND 11,732,606 12,616,069 13,144,531
VEHICLE STORAGE FACILITY
Licenses and Permits 20,045 20,960 21,240
Storage Fees 331,867 330,000 330,000
Wrecker Fees 364,767 506,610 420,000
Vehicle Auction Sale 508,209 360,390 440,000
Impound Administration 90,870 91,000 100,000
Vehicle Storage Miscellaneous 20,997 14,000 37,600
Contributions/Donations 23,007
24,000
TO
TAL VEHICLE STORAGE FACILITY 1,359,762 1,346,960 1,348,840
WASTE DISPOSAL ENTERPRISE FUND
Sanitation Fees 15,241,606 16,019,921 15,910,000
Landfill Fees 953,621 910,000 1,300,000
Methane Gas Revenue 120,272 96,000 135,000
Yard Waste 69,115 60,000 100,000
Compost Sale 119,196 85,000 100,000
Interest On Investments 8,682 8,000 8,000
Miscellaneous Revenue (22,718) 15,600 10,000
Contributions/Donations 2,039,153
Transfers 1,475,240
TOTAL WASTE DISPOSAL ENTERPRISE FUND 20,004,167 17,194,521 17,563,000
Return to Table of Contents
2012 2013 2014
ACTUAL (1) ADOPTED ADOPTED
CITY OF LITTLE ROCK
2014 OPERATING REVENUE
PARKING GARAGES
Business License - Auto/Truck 210,193 270,000 270,000
Street Repair Reimbursement 299,775 130,000 180,000
Parking Meters 489,047 470,000 500,000
Surface Lot Parking 88,683 88,683 93,117
Parking Deck Monthly 798,874 823,000 870,000
Parking Deck Daily 173,262 177,200 248,500
Parking Peabody 79,123 83,000 60,000
Interest on Investments 1,946 2,100 2,100
Miscellaneous Income - 800 450
TOTAL PARKING GARAGES 2,140,903 2,044,783 2,224,167
GRAND TOTAL ALL FUNDS 230,954,066$ 222,008,289$ 237,908,764$
(1) The 2012 Actual numbers have been adjusted to reflect the consolidation of the River Market,
Golf, Jim Daily Fitness and Aquatics Center, and Zoo Funds with the General Fund.
Return to Table of Contents
City of Little Rock, Arkansas 2014 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 largest source of revenue in the City’s General Fund is sales tax, which
contributes approximately 52% to the 2014 budget. The 2014 operating budget
includes an increase in sales tax of 1% over 2013 actual tax collections. In
September 2011, voters approved an overall one (1)-cent sales tax increase, with
5/8 cent dedicated for ongoing operating expenses and 3/8 cent dedicated to
capital projects over a ten (10) year period. The 2013 sales tax grew at a rate of
0.68% over 2012 actuals. Growth in monthly sales tax receipts compared to the
same period a year ago continued to be volatile throughout the year without any
definitive trends. 2013 sales tax revenue for January, July, and November sales
grew at a rate of over 4.5% in comparison to the same periods a year ago, while
revenues for March sales were more than 5% below the same period a year ago.
Consumer confidence appears to be on the rise, but sales taxes generated by retail
sales have remained relatively flat. The impact of increasing internet sales and
rebates for local sales tax on business, governmental, and non-profit purchases in
excess of $2,500 have stifled local tax growth. State statute restricts the level of
tax information available to municipalities which makes revenue forecasting very
difficult.
The 2014 budget includes the revenue and expense associated with separate
property tax millages and state turnback funds for the closed Police and Fire
Pension and Relief Funds. The revenue is passed through the General Fund and
contributed directly to the Police and Fire Pension Funds. In prior years, this
revenue has been reflected as a year-end adjustment and has not been included
in the annual budget. In 2014, the dedicated revenue of approximately $10.9
million is included in the General Fund budget. Excluding the dedicated pension
revenue, the projected change in operating revenues is approximately 2.5% over
the original 2013 operating budget.
REVENUES CHANGE
2010 Operating Revenues 131.1
2011 Operating Revenues 134.4 2.52%
2012 Operating Revenues 163.8 21.88%
2013 Operating Revenues 171.2 4.52%
2014 Operating Revenues 184.3 7.62%
Return to Table of Contents
City of Little Rock, Arkansas 2014 Operating Budget
Property taxes comprise approximately 14.4% of 2014 General Fund budgeted
revenues. Assessments of real estate and personal property are levied in the
current year and collectible in the following year. Little Rock is in Pulaski County
which completed a real estate reappraisal in 2012. Historically, the reappraisal is
on a three (3) year cycle, however the Arkansas State Assessment Coordination
Department altered the reappraisal to a five (5) year cycle with the next appraisal
in 2017. Personal property is reappraised annually by May 31. The original charge
for 2013 property taxes to be collected in 2014 reflects a 2.4% increase over 2013.
Utility franchise fees comprise approximately 15% of 2014 General Fund budgeted
revenues. 2013 utility franchise revenues were approximately 2% above 2012.
Overall, there is a slight increase over the 2013 budget and a 1% reduction from
2013 actual revenues forecast for 2014. Weather plays a significant role in the
majority of the annual franchise fee revenues. The largest percentage changes
experienced in 2013 were associated with CenterPoint Energy, the gas utility,
Wastewater, and Comcast Cable. The price of natural gas increased substantially
over the past twelve months. The increase in natural gas prices, coupled with a
14.6% increase in usage, resulted in an increase in franchise fee revenues from
CenterPoint Energy of approximately 19%. Wastewater Utility implemented an
average 8% increase in rates in 2013. Central Arkansas Water and the
Wastewater utility have experienced significant reductions in water usage due to
efficiencies in technology, conservation efforts, and significant rainfall in the spring
and summer. There are a number of franchise rate adjustments announced for
2014. Entergy Arkansas, the electric utility, has announced a 4% reduction in rates
with the expiration of the Federal Energy Regulatory Commission (FERC) rider
associated with its exit from a multi-state agreement in which it had operated for
decades to equalize rates among member states. Central Arkansas Water
announced a scheduled rate increase of 4%. CenterPoint Energy announced a
5.24% increase in rates for the first quarter of 2014. Wastewater will implement
scheduled rate increases of an average of 7% in 2014 and 4.75% in 2016. The
downward revenue trend continues for local landline franchise fees. The trend
towards households with only wireless phones gains in popularity.
Telecommunication revenues are expected to further decrease as wireless
continues to increase market share. Long distance and fiber optic revenues
continue to remain consistent with prior year revenues.
Licenses and permits comprise approximately 5.7% of 2014 General Fund
revenues. 2013 revenues increased 4.4% over 2012 and are expected to increase
approximately 1% over the amended 2013 budget in 2014. The 2013 growth
consisted of a 3.9% increase in business licenses and a 13.4% increase in mixed
drink supplemental payments. Building and related permit revenue declined 2.5%
from 2012 levels. Fines and fee revenues increased approximately 9.8%
compared to one year ago but were below 2013 budget levels. Traffic and parking
fines increased slightly from one year ago along with animal control operating
revenues and fines.
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City of Little Rock, Arkansas 2014 Operating Budget
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.
A Little Rock resident living in the Little Rock School District is charged a
millage rate of 70.10.
Taxes are remitted to the City monthly by the Pulaski County Treasurer as
payments are received throughout the year.
The General Assembly exercised its homestead exemption authority with the
passage of Act 1598 of 2001 (Amendment 79). 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 2013 property taxes to
be collected in 2014 which reflects an overall increase of 2.43%. The Pulaski
County Treasurer’s Office is experiencing a collection rate of approximately 96%,
which includes collection of delinquent taxes from previous years.
The City tax levies the past two years were as follows:
2012 Payable 2013 2013 Payable 2014
General Operation 5.00 5.00
Bond Retirement 3.00 3.00
Library System 5.20 5.20
Police & Firemen’s Pension 2.00 2.00
15.20 15.20
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City of Little Rock, Arkansas 2014 Operating Budget
The dedicated one mill property tax levies for the Police and Fire Pension plans
are included in the General Fund budget in 2014. The revenue is reflected in the
General Fund and is contributed directly to the Police and Fire Pension Funds. In
prior years, this “pass-through” revenue was not included in the annual budget, but
was included in actual revenues as a year-end adjustment. The dedicated pension
property tax millage is expected to generate approximately $7,510,200 in
revenues.
In addition, the City receives approximately one-half of the collections from a 2.90
mill road tax levied by the County and restricted to use for street repair and
maintenance. The 2014 budget anticipates $5.47 million in property tax collections
from this tax.
In addition to the City millage of 15.20 and the County road millage of 2.90, a Little
Rock property owner’s tax assessment for 2013 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 70.10 for 2013 property taxes payable in 2014.
The general operations 5.0 mill levy is the maximum rate allowable under state law
for general city operations. Property taxes for 2013 increased slightly over 2012
receipts. Property taxes include Act 9 Payments which represent payments in lieu
of property taxes paid by certain industrial companies. Dillards, LM Wind Power
Blades, Inc., Novus, Ringwood Container, Sage V Foods, Welspun Pipes, Inc. and
Windstream are companies which are scheduled to make Act 9 payments in 2014.
COUNTY SALES TAX
The City receives a pro-rata share of a one (1) cent countywide sales tax.
Distribution is based on the Little Rock population as a percentage of Pulaski
County’s total population. According to the 2010 Census, Little Rock experienced
a 5.0% growth in population from the 2000 Census. The City comprises
approximately 50.56% of the County population and therefore receives this
percentage of the County sales and use tax. The projected revenue for 2014 from
this tax is $39,999,500, which represents a 1.75% increase over the anticipated
2013 year-end results at the time the budget was adopted and a 1.47% increase
over 2013 actual sales tax receipts.
Use taxes, paid mostly by businesses, resemble sales taxes. They apply to goods
purchased from out-of-state merchants such as catalog vendors. Use taxes
included in the projection are approximately $3,625,000 annually. The local city
sales tax of 1.5% grew at a slightly higher rate of 0.78% than the county’s sales
tax growth rate of 0.52%. 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
Prior to 2012, the City of Little Rock levied one of the lowest sales tax rates in the
State of Arkansas at 0.5%. In September 2011, voters approved an overall one
(1) cent sales tax increase which is comprised of a permanent 5/8 cent dedicated
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City of Little Rock, Arkansas 2014 Operating Budget
for ongoing operations and a temporary 3/8 cent dedicated to capital projects over
a ten (10) year period. The new tax went into effect on January 1, 2012. The
existing 1/2 cent sales tax generated $23,376,013. The new 5/8 cent tax dedicated
to ongoing operations generated an additional $29,220,016 in revenue in 2013.
The 3/8 cent tax for capital projects generated $17,568,444 in 2013 and is
expected to generate $195.8 million over the ten (10) year period for capital
projects. The 3/8 cent tax revenue is not reflected in General Fund revenues.
Instead, it is reported in a separate capital projects fund.
There is a two-month delay from the time the actual sales tax revenues are
collected by businesses and the time they are received by the City. Sales tax is
remitted by businesses to the State, which disburses this amount to the City, less
a 3% administrative charge. Prior to January 2014, local governments had limited
information regarding sales tax receipts which made forecasting these revenues
difficult. As a result of concerted efforts by the Municipal League and sponsoring
cities, the Arkansas Department of Finance and Administration now issues a
statistical report which classifies and summarizes tax collection and adjustment
information for businesses, reporting activity for the specific city or county by
NAICS code. Over time, the reports are expected to better assist in sales tax
forecasting. The report will include components that comprise negative
adjustments, such as refunds, rebates and corrections. The projected revenue for
2014 from the local city tax is approximately $53,177,100 which represents a
1.75% increase from anticipated 2013 year-end results at the time the budget was
adopted and 1.10% over actual 2013 receipts.
STATE TAX TURNBACK
The State General Assembly, through the Office of Budget, appropriates and then
distributes an amount for turnback to municipalities each July 1
st
, based on
population. The General Fund turnback for 2014 was reduced from $16.30 to
$15.20 per capita, or a 6.75% decrease. The Arkansas State Legislature
$9,000,000
$18,000,000
$27,000,000
$36,000,000
$45,000,000
$54,000,000
$63,000,000
Budget Budget Budget
Actual Adopted Adopted
2012 2013 2014
Sales Tax
County Sales Tax
City Sales Tax
State Tax Turnback
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City of Little Rock, Arkansas 2014 Operating Budget
appropriated monies to be disbursed to county and local governments from the
surplus of the Property Tax Relief Fund. Historically, Little Rock has received
approximately $411,000 from this appropriation. A reduced surplus in the fund will
result in a reduced appropriation to Little Rock of $205,925. State turnback funds
should generate approximately $2.95 million dollars in General Fund revenue in
2014.
Month 2012 2013 2012 2013 2012 2013
January $6,537,582 $6,083,989 $537,347 $567,572 *$5,889,623 $5,890,046
February 7,103,104 6,402,534 485,628 728,037 1,889,245 1,897,309
March 6,111,823 5,816,498 809,524 742,998 1,889,603 1,889,913
April 6,508,820 6,019,069 508,320 646,154 1,882,530 1,890,084
May 6,925,015 6,643,763 375,733 589,734 1,889,362 1,884,772
June 7,148,253 6,880,560 395,418 671,509 1,889,865 1,889,911
July 7,043,887 6,750,810 375,174 803,621 ** 5,842,460 5,424,973
August 6,643,716 7,684,016 294,504 865,190 1,889,165 2,586,804
September 6,846,853 9,473,120 356,918 817,319 1,890,041 1,889,910
O
ct
ober 6,528,082 9,422,856 498,818 742,984 1,890,041 1,889,910
November 6,440,630 8,234,597 545,492 686,467 1,889,559 1,889,429
December 6,450,883 8,433,441 470,060 685,869 1,703,307 1,889,910
Total $80,288,648 $87,845,255 $5,652,935 $8,547,455 $30,434,803 $30,912,971
* Includes $4 million appropriation from the Property Tax Relief Fund
** Includes $3,516,786.65 supplemental in July 2012 and $3,516,799.83 in July 2013
State Turnback
State Turnback Year-to-Date 2013 with 2012 Comparison (shaded blue)
Street Severance General
Month 2013 2012 2013 2012 2013 2012 2013 2012
January $43,764,256 $37,846,866 $39,379,372 $37,289,267 $83,143,628 $75,136,134 $12,329 $12,533
February 51,585,273 46,523,853 44,215,215 44,592,756 95,800,488 91,116,609 26,338 22,619
March 42,875,487 40,360,002 38,040,827 36,819,087 80,916,314 77,179,089 8,508 13,222
April 44,204,032 41,324,697 39,707,294 37,882,489 83,911,326 79,207,186 24,953 27,247
May 47,315,206 46,157,943 42,055,467 41,661,276 89,370,673 87,819,219 5,611 8,489
June 46,455,658 43,883,127 41,846,373 40,430,123 88,302,031 84,313,250 27,062 30,892
July 47,227,642 44,736,261 42,580,665 40,688,525 89,808,307 85,424,786 7,773 11,606
August 47,615,222 45,618,216 43,352,547 41,616,180 90,967,768 87,234,396
25,
210 27,685
September 45,850,267 44,215,998 43,479,764 40,815,883 89,330,031 85,031,881 9,433 14,110
October 46,540,715 45,686,669 44,208,889 42,353,132 90,749,603 88,039,801 26,911 28,246
November 45,245,392 45,434,409 42,367,542 41,142,702 87,612,934 86,577,110 8,718 14,114
December 45,359,946 44,662,489 41,645,364 40,506,136 87,005,310 85,168,625 29,399 26,648
Total $554,039,096 $526,450,530 $502,879,319 $485,797,556 $1,056,918,413 $1,012,248,086 $212,245 $237,411
Averages $46,169,925 $43,870,878 $41,906,610 $40,483,130 $88,076,534 $84,354,007 $17,687 $19,784
Municipal Sles and Use Tax has an effect on local sles tax revenues and is one of the factors that affect local sales tax based on where
the purchaser takes receipt or delivery of the product or service.
Source: Debbie Rogers, Office of State Treasurer
Interest
Local Option Sales and Use Tax in Arkansas
Sale and Use Tax Year-to-Date 2013 with 2012 Comparison (shaded blue)
Municipal Tax County Tax Total Tax
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94
City of Little Rock, Arkansas 2014 Operating Budget
INTEREST EARNINGS
Interest earned on the investments and bank deposits of the General Fund, certain
bond retirement funds, special projects and capital funds can legally be utilized for
any municipal purpose. The Federal Funds rate has decreased to a target range
of between 0.00% and 0.25% and has remained at historically low levels since
January 1, 2009. The Discount Rate currently remains at 0.75%. During the
second half of 2013, the yield on fixed-income investments held in the short-term
operating fund have increased slightly.
These securities are short in duration, backed by the U.S. government and are
among the safest securities in the world. Short term interest rates are scheduled
to remain in the exceptionally low range in 2014 with rates expected to rise only
modestly by the end of 2015. Slightly higher interest rates coupled with larger fund
balances should increase investment earnings in 2014. The City’s bank deposits
continue to yield a favorable 0.45% in 2014.
UTILITY FRANCHISES
Utility franchise fees are charged to public utilities for the privilege of using the
City’s streets and rights-of-way. The public utilities paying franchise fees are listed
below with the annual rate, which is typically based on the gross revenues of the
utility:
Entergy 5.20% of gross revenue collection for the
current calendar year or $8.8 million,
which-ever is greater
CenterPoint Energy 5.20% of gross revenue for the current
calendar year or $2.1 million, whichever is
greater
AT&T (Local Land Lines) 7.32% of local exchange access line
charges for the previous calendar year
All Other Local Land Lines 7.32% of local exchange access line
charges for the previous calendar year
Comcast Cable 5.00% of gross revenues
Central Arkansas Water 10.00% of gross revenues from water
sales to customers within the City plus
0.1545 times 20% of the book value of the
Water Works system inside the City limits
WasteWater Utility 10.00% of gross revenues
Fiber Optics 5.00% of gross revenues
Long Distance Franchise $0.004 per minute of toll calls
95
City of Little Rock, Arkansas 2014 Operating Budget
Overall franchise fee revenues in 2013 were 1.91% higher than 2012 levels.
CenterPoint Energy, the gas utility, experienced significant revenue increases
(19%) due to an increase in the price of natural gas and an almost 15% increase
in usage, the result of an unusually cold winter.
CenterPoint reports its natural gas costs to the Arkansas Public Service
Commission at the end of every October and those rates are passed along to
customers with no profit going to the utility. CenterPoint announced a 5.24% rate
increase for the first quarter of 2014. Certain franchise fee revenues, such as
Entergy, CenterPoint, and Central Arkansas Water are directly impacted by the
weather. An on-going national trend is that water consumption continues to
decrease due to water saving appliances and conservation measures.
A relatively mild 2013 summer resulted in a decrease in Entergy franchise
revenues of 1.67% while usage declined by almost 3%. Entergy Corp. announced
a 4% reduction in rates with the expiration of the Federal Energy Regulatory
(FERC) rider. The elimination of the FERC rider begins on January 1, 2014 upon
Entergy Arkansas, Inc. exiting its parent company (Entergy Corporation System)
and joining the Midwest Independent Transmission System Operation, Inc. The
Energy Cost Rate (ECR) is also expected to decrease slightly. The loss and
reduction in riders are projected to reduce revenues by 5% from 2013 totals.
Central Arkansas Water (CAW) announced a rate increase of 4% for 2014. The
rate increase was necessary to pay debt service on bonds issued to bring the
utility’s two treatment plants to EPA standards as required by the Clean Water Act.
The rate increase is expected to raise an average homeowner’s water bill by 48
cents in 2014. The average increase for a commercial user is expected to be
approximately 3.5%. In 2013, franchise fees received from Central Arkansas
Water were 7.81% lower than in 2012. According to CAW, 2012 was a record year
for total water usage while 2013 was a record low. The majority of the 2013
summer had ample precipitation and mild temperatures.
Little Rock Wastewater revenues increased 10.68% over the previous year. The
majority of the increase was attributed to an 8% increase in the sewer rate.
Wastewater Utility has announced an
overall rate increase of 7% for 2014
with 2.5% of the increase for
residential users. There is no
announced rate increase for 2015.
However, Little Rock’s sewer rate is
scheduled to increase 4.75% in
2016. The announced rate increases
were implemented to comply with the
terms of the Sierra Club lawsuit to
reduce sanitary sewer overflows in
Little Rock. Franchise fee revenues from local land line companies continue to
decline from a peak in 1998. This trend is expected to continue in the foreseeable
future, with more customers migrating from utilization of a home phone (land line)
$6,400,000
$12,800,000
$19,200,000
$25,600,000
$32,000,000
Budget Budget Budget
Actual Adopted Adopted
2012 2013 2014
Utility Franchise
Utility Franchise
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City of Little Rock, Arkansas 2014 Operating Budget
and a mobile phone to only a mobile phone. Revenue from local land line providers
declined 2.99% in 2013 and are expected to further decrease in 2014.
The downward trend in traditional franchise fee revenues from long distance
providers is a result of an increase in wireless or mobile phone usage for long
distance calls. The franchise fee revenue from long distance actually increased
7.2% in 2013 after an 11% decrease in 2012. The increase in 2013 was attributed
to capturing the smaller long distance providers operating in Little Rock through
the Arkansas Public Service Commission. Long distance revenue is projected to
remain steady in 2014.
Franchise revenue from CenterPoint Energy, the gas utility, significantly improved
(19%) due to an increase in the price of natural gas and an almost 15% increase
in usage associated with the unusually cold winter. CenterPoint accumulates and
stores natural gas for the next heating season. The cost of natural gas makes up
between 70% and 80% of the typical bill. Natural gas prices have increased
approximately 5.6% in the prior twelve (12) months. CenterPoint reports its natural
gas costs to the Arkansas Public Service Commission at the end of every October
and those rates are passed along to customers with no profit to the utility.
CenterPoint announced a 5.24% rate increase for the first quarter of 2014,
however; the increase should be offset by lower consumption, resulting in a
relatively flat growth rate for 2014.
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 remained
steady in 2013. A one-time refund of $46,000 to an exempt non-profit resulted in
an overall decrease in revenues from Windstream. Going forward, the exemption
of sales to the non-profit will result in an $18,000 decrease in franchise revenue
per quarter. Fiber optic companies rarely announce anticipated rate increases in
advance of the actual rate change. Cell phone and Internet usage is not included
in the franchise agreement.
Franchise fee revenues for fiscal year 2014 are forecast to be less than one
percent above 2013 receipts and relatively flat compared to the amended 2013
budget. Utilities may adjust rates during the course of the year which affects
revenues. In addition, severe weather or unusual weather patterns may impact
franchise revenues.
Entergy -4.00%
CenterPoint 5.24%
Waste Water Utility 7.00%
Central Arkansas Water (CAW) 4.00%
SW Bell (AT&T) 0.00%
Local Land Lines 0.00%
Long Distance 0.00%
Fiber Optics 0.00%
Announced Utility Rate Adjustments for 2014
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City of Little Rock, Arkansas 2014 Operating Budget
BUSINESS LICENSES
Business licenses are required annually for every business operating within the
City limits. License fees are billed, collected, and administered by the City’s
Treasury Management Division. Business licenses continue to be a stable
revenue source with 2013 license fees increasing 3.88% to over $6.3 million. The
increase of over $235,000 for 2013 is attributed to an improved local economy and
aggressive collection of delinquent accounts. 2014 revenues are expected to
remain at 2013 levels with no scheduled rate increases. A business license
committee will review the fairness and equity of the business license fee structure
periodically and provide recommendations to the Board of Directors.
MIXED DRINK PERMITS AND SUPPLEMENTAL TAX
Hotels, restaurants, and bars are required to have a permit in order to sell alcoholic
beverages for on-premises consumption. In addition, a 10% supplemental tax is
levied on public liquor sales and a 5% tax is levied on sales by private clubs within
the City. 2013 mixed drink revenue was 13.43% above 2012 and 8.40% above
the 2013 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 2014 budget anticipates an increase of approximately
2.2% over 2013 actual revenues.
BUILDING AND RELATED PERMITS
Building and related permits, which include electrical permits, plumbing permits,
and heating ventilation and air conditioning (hvac) permits, were 8.3% above the
2013 amended budget but almost 2.5% below 2012 actuals. The 2013 budget
was reduced significantly because 2012 included the permitting of several large
apartment complexes, a hospital expansion and a new downtown hotel.
The City’s Planning & Development Department projects construction to remain
stagnant for residential permits, but commercial activity is expected to be above
2013 levels. Commercial projects planned in early 2014 include the new CARTI
campus ($50.7 million), the Residence at Brodie Creek Phase II, and the 72,000
square-foot Little Rock Medical Associates building in midtown. In addition, three
(3) downtown projects are expected to have a significant economic impact in 2014,
including Homewood Suites, MacArthur Commons and Hilton Garden Inn.
Construction of the 325,000 square-foot Gateway Town Center, which will be
home to an upscale outlet mall next to the Bass Pro Shop is planned to begin in
southwest Little Rock in the spring of 2014. Continued favorable interest rates
should continue to spur construction activity in Little Rock.
FINES
Fines and related fees comprise 1.74% of the 2014 budget. 2013 fines and fees
were approximately $260,500 or 9% above the previous year. Over $100,000 of
the increase is attributed to the inclusion of various RiverMarket fees such as
equipment rental, security, etc. in 2013 General Fund revenues. Previously,
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City of Little Rock, Arkansas 2014 Operating Budget
RiverMarket revenues were included in a separate enterprise fund. Traffic fine
revenues were flat in 2013 but are expected to increase approximately 2.50% from
prior year as additional Police officers funded by the new 5/8 cent sales tax are
deployed. Parking fines increased approximately 25% in 2013 from 2012 totals.
Parking Enforcement attributes the increase in tickets issued to an additional motor
scooter and more operational meters than the previous year. 2013 parking fine
revenues did not experience a significant increase from the installation of the eight
(8) new pay and display solar meters servicing approximately 108 spaces in the
RiverMarket since they were installed in late October. The new meters should
contribute noticeable parking fine revenue in 2014. 2014 parking fines are
projected to be 11% higher than 2013 with the increase in operational meters.
PARK & ZOO REVENUE
General Fund park revenues are generated by three (3) golf courses, tennis fees,
community center fees, athletics fees, summer programs and pavilion rentals.
Prior to 2013, the Zoo, Jim Dailey Fitness & Aquatic Center, and the municipal golf
courses (Rebsamen, Hindman and War Memorial) were operated as separate
enterprise funds. At the end of 2012, these activities were consolidated into the
General Fund. General fund park and zoo revenues are expected to increase
11.60% or $1,169,000 from one year ago, primarily due to increased Zoo
admission charges and the reopening of Hindman Golf Course which was
renovated in 2013.
Excluding Transfers In and Donations, Zoo revenues decreased approximately 9%
or $312,040 from one year ago. Similar to park revenues, Zoo revenues are
heavily dependent on weather conditions. The spring of 2013 was unseasonably
cold followed by a very wet summer. Additionally, the popular train at the Zoo was
taken off-line for renovation. Overall, 2014 Zoo revenues are projected to be
approximately 14% higher than 2013 actual revenues. Zoo Admissions account
for approximately $420,000 of the increase to Park and Zoo revenue. Following a
2013 independent study of Zoo rates and services across the country, 2014 Adult
Zoo Admission fees will increase from $10.00 to $12.00, and rates for children,
ages 1-12 will increase to $9.00 from $8.00. Group Admission fees for fifteen (15)
people or more will increase $1.00 to $6.00 per person. The Zoo is in the process
of purchasing a train and renovating the train tracks with plans to make it available
for guests by the start of the spring busy season.
The City operates three (3) public golf courses and relies heavily on greens fees
and concessions to operate these courses. Historically, March is the start of the
busy season for golf courses. Similar to Zoo revenues, the cold spring months
coupled with the wet summer months reduced the number of patrons on each
course in 2013. Overall golf revenues were 16.92% below 2012 levels. 2013
Rebsamen Golf revenues decreased almost 13%. War Memorial revenues
decreased 4.79% from one year ago and Hindman Golf Course decreased
44.20%. The sharp decline in Hindman revenues were the result of a temporary
closure for the purpose of resurfacing all eighteen holes, including the practice
putting greens and for renovations to the pro shop. The improvements and new
renovations at Hindman are expected to increase 2014 revenues 8.54% over the
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City of Little Rock, Arkansas 2014 Operating Budget
last full year of revenues. The 2014 Rebsamen golf revenues are projected to be
10.6% over last year, and War Memorial revenues are projected to increase
approximately 3%.
AIRPORT REIMBURSEMENT
The Little Rock National Airport reimburses the City for expenses related to police
and fire protection. In 2013, airport police reimbursements increased 7.77% to
$1.91 million and airport fire reimbursements increased 2.49% to $1.24 million.
Staffing levels and 2014 airport reimbursements should be consistent with 2013
levels. The increases in salaries and healthcare cost will offset the negotiated
$79,000 reduction in police overtime at the airport.
STREET GAS TAX TURNBACK
The City receives state turnback funds directed to the Street Department. The gas
tax turnback is allocated based on the latest census and gallons of fuel consumed.
Basically, 15% of the tax on gasoline consumption goes toward municipal aid or
gas turnback. 2013 revenues were 21.65% higher than 2012, the result of the
passage of Constitutional Amendment No. 1 in the general election of 2012. The
initiative provided additional funding for State, County and City streets and bridges
with a temporary one-half percent (0.5%) sales and use tax for road construction
and maintenance. The ten (10)-year sales tax is effective from July 1, 2013 through
December 2022. The measure increased the per capita funding for city streets
from $52 to $62. Gas turnback funds have been trending downward as a result of
lower gas consumption associated with more fuel efficient automobiles. The State
Highway Department’s turnback projection for 2014, including gas tax, severance
tax and sales tax is $12.1 million. The 2014 Street Turnback estimate includes
proceeds from the new highway 1/2-cent sales tax and severance tax on natural-
gas. Currently, approximately 7% of the turnback is attributed to the natural gas
severance tax. The 2014 budgeted increase of 13.7% is attributed to the first full
year of the new sales tax.
$0
$250,000
$500,000
$750,000
$1,000,000
Budget Budget Budget
Actual Adopted Adopted
2012 2013 2014
Golf Department
Green Fees
Equipment Rental
100
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City of Little Rock, Arkansas 2014 Operating Budget
BOND & INTEREST FUND
Revenues from this fund were utilized to finance the debt service on the
$70,635,000 Limited Tax Bond Issue, Series 2004. In November 2003, voters
approved the continuance of a 3.3 annual property tax millage for debt service on
the bonds. The bonds were fully redeemed on April 1, 2013. The voters of Little
Rock approved a new annual ad valorem tax at a lesser rate of 3.0 mills at a special
election on September 11, 2012. The reduced millage replaces the previous 3.3
mill tax and is pledged for the financing of $105 million in street and drainage
improvements. On July 15, 2013, the City issued $58,105,000 of general obligation
debt ($42,000,000 for street improvements and $18,000,000 for drainage
improvements). The millage, along with the Homestead Credit, which is monies
generated from a state-wide half-cent sales tax, produced approximately $11
million toward 2013 debt service on the outstanding bonds.
WASTE DISPOSAL
The 2013 Waste Disposal charges for services revenues increased 8.87% over
2012 levels. Sanitation fees revenue increased 5.53% primarily attributable to
delinquent collections. Landfill fees increased almost 57%, the result of a full year
agreement with Waste Management and Waste Corporation for dumping fees.
Revenues from methane gas increased almost 45% as a result of the exclusive
vendor maintaining equipment online for the majority of the year. The monthly
residential rate for sanitation pickup remained at $22.02. There are approximately
58,000 households currently receiving garbage collection services.
In addition, approximately 280 commercial vendors pay an average rate of $33.37
a month for waste disposal services. The 2014 budget for sanitation fees of almost
$16 million is lower than 2013 actuals because it contains no anticipated
delinquent collections. Landfill fees are projected to drop 13% from one year ago
because of a decline from private haulers. In addition, 2013 revenues included a
significant amount of 2012 winter storm debris. Landfill fees are expected to
generate approximately $1,300,000 in 2014. Methane gas captured by the landfill
is piped to a vendor and is expected to generate $135,000 in annual revenues.
$1,000,000
$3,000,000
$5,000,000
$7,000,000
$9,000,000
$11,000,000
$13,000,000
Budget Budget Budget
Actual Adopted Adopted
2012 2013 2014
Street Fund
1/2 County Road Tax
Gas Turnback
101
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City of Little Rock, Arkansas 2014 Operating Budget
VEHICLE STORAGE
Vehicle Storage revenues are generated from storage fees, wrecker fees, and
auction sales. These revenue sources contributed approximately 80% of total
2013 revenues which was a decrease of 10.3% from one year ago. The largest
decrease was associated with vehicle auctions which declined almost $168,000
from one year ago. 2012 Vehicle Auction revenue was overstated with some
wrecker fees included in the total. The 2014 revenue budget remains flat compared
to 2013 actuals. There were 3,257 tows to the Little Rock Vehicle Storage facility
in 2013 compared to 3,132 in 2012. The average sales price per vehicle auctioned
in 2013 was $601.
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
$0
$4,000,000
$8,000,000
$12,000,000
$16,000,000
$20,000,000
Budget Budget Budget
Actual Adopted Adopted
2012 2013 2014
Waste Fund
Sanitation Fees
Landfill Fees
$140,000
$280,000
$420,000
$560,000
$700,000
Budget Budget Budget
Actual Adopted Adopted
2012 2013 2014
Fleet Services Vehicle Storage Facility
Storage Fees
Wrecker Fees
Vehicle Auctions
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City of Little Rock, Arkansas 2014 Operating Budget
automobiles and trucks, parking meter revenues, and street repair fees collected
from utility companies are pledged to debt service on the bonds issued to construct
the parking garages. Overall Parking Garage revenues were 1.30% lower in 2013
than 2012 but 3.3% higher than budget. Monthly revenues from the Statehouse
and the RiverMarket Garages were 10.14% higher in 2013 and 6.91% over budget.
Daily revenues from both garages remained consistent with 2012. In 2014, daily
RiverMarket parking is expected to increase with the reduction in available parking
spaces downtown.
Street cut revenues decreased over 51% from one year ago when with one fiber
optic company significantly increased the number of street cuts in order to replace
and install new fiber optic lines within the city. Street cut revenue has returned to
more normal levels and is expected to decrease slightly for 2014. Eight (8) new
solar-powered pay parking stations were installed in 2013 on President Clinton
Avenue and will be online for a full year in 2014. The installation decreased the
number of free parking spaces at the RiverMarket by 108 spaces. Monthly
revenues from the new meters are expected to generate $4,000 with 50% of this
total committed to reimburse the installation costs of the meters in the first full year.
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General Fund Revenues
Sources and Trends
2009-2014
Revenues increased significantly with the implementation of a new
sales tax in 2012. The 5/8-cent portion of the tax for on-going
operations increased the existing 1/2-cent tax to a total of 1.125%.
Note: 2011 and 2012 Actual revenues have been adjusted to reflect
the consolidati on of the River Market, Golf, Jim Dailey Fitness &
Aquatic Center, and Zoo Funds with the General Fund.
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Expenditures
CITY OF LITTLE ROCK
2014 BUDGET SUMMARY
ALL FUNDS EXPENSES
$237,965,157
Street
Fund
8.14%
Fleet
Services
5.52%
Waste
Disposal
7.42%
General
Fund
77.43%
Vehicle Storage
Facility
.56%
Parking
Garages
.93%
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2012 2013 2013 2014 13/14 %
GENERAL FUND ACTUAL (1) ADOPTED AMENDED* ADOPTED DIFF CHANGE
General Administrative $22,014,866 $20,771,516 $20,400,162 $20,296,290 ($103,872) -0.51%
Board of Directors 217,312 234,774 282,447 338,527 56,080 19.86%
Community Programs 354,736 358,428 362,235 388,081 25,846 7.14%
City Attorney 1,497,920 1,706,756 1,584,169 1,769,774 185,605 11.72%
District Court First Division 1,149,358 1,381,441 1,278,561 1,392,505 113,944 8.91%
District Court Second Division 1,127,676 1,222,308 1,211,957 1,247,286 35,329 2.92%
District Court Third Division 550,961 565,562 561,888 627,185 65,297 11.62%
Finance 2,772,119 3,006,838 2,986,382 3,136,992 150,610 5.04%
Human Resources 1,334,084 1,549,857 1,548,499 1,632,677 84,178 5.44%
Information Technology 3,583,744 4,478,965 3,930,001 4,358,322 428,321 10.90%
Planning Development 1,837,969 2,499,148 2,129,139 2,583,968 454,829 21.36%
Housing & Neighborhood Programs 4,073,655 5,534,697 4,944,864 5,673,839 728,975 14.74%
Public Works 962,161 1,138,346 1,025,434 1,166,482 141,048 13.75%
Parks & Recreation 7,475,977 9,534,163 8,785,775 9,739,691 953,916 10.86%
River Market 1,185,528 1,197,800 1,197,800 1,208,675 10,875 0.91%
Golf 2,354,974 2,081,552 2,274,838 2,187,165 (87,673) -3.85%
Jim Dailey Fitness and Aquatic Center 864,202 891,475 803,405 896,565 93,160 11.60%
Zoo 5,315,033 6,091,304 5,896,684
6,488,801 592,117 10.04%
Fire 41,413,487 39,167,052 44,364,845 45,774,586 1,409,741 3.18%
Police 59,187,490 58,401,831 64,209,117 67,200,859 2,991,742 4.66%
Vacancy Savings (3,900,000) (5,000,000) (5,000,000)
Sub-total General Operating 159,273,252 157,913,813 169,778,202 173,108,270 3,330,068 1.96%
TRANSFERS OUT/OTHER EXPENSES
Transfer out to Street Fund 886,071 1,082,000 1,282,000 1,082,000 (200,000) -15.60%
Special Projects/PIT 12,946,749 9,505,347 9,829,347 9,074,260 (755,087) -7.68%
Waste Disposal 1,475,240 -
Police & Fire Pension 1,000,000 -
Contingency/Reserve 1,710,000 1,000,000 1,000,000
Zoo, Golf, Fitness - Consol. with Gen. Fund 11,827,285
Sub-total of Transfers Out 27,135,345 13,297,347 11,111,347 11,156,260 44,913 0.40%
TOTAL GENERAL FUND 186,408,597 171,211,160 180,889,549 184,264,530 3,374,981 1.87%
OTHER FUNDS 2,186,000
Public Works - Street 15,696,875 17,594,796 17,594,796 19,363,696 1,768,900 10.05%
Fleet Services 11,622,523 12,616,069 12,866,069 13,135,688 269,619 2.10%
Vehicle Storage Facility 1,284,946 1,293,257 1,293,257 1,321,150 27,893 2.16%
Waste Disposal 16,574,747 17,688,470 17,688,470 17,655,926 (32,544) -0.18%
Parking Garages 1,861,831 2,179,806 2,179,806 2,224,167 44,361 2.04%
Sub-total Other Operating Funds 47,040,922 51,372,398 51,622,398 53,700,627 2,078,229 4.03%
TOTAL ALL FUNDS 233,449,519$ 222,583,558$ 232,511,947$ 237,965,157$ 5,453,210$ 2.35%
* The 2013 Amended Budget includes a reduction in departmental budgets for vacancy savings achieved throughout the year.
Vacancy savings represents savings from authorized but unfilled positions. The 2013 vacancy savings goal was fully realized.
(1) Numbers have been adjusted to reflect the consolidation of the River Market, Golf, Fitness and Aquatics Center, and Zoo Enterprise Funds with the
General Fund.
CITY OF LITTLE ROCK
2014 OPERATING & OTHER BUDGETED EXPENDITURES
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$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
2012 2013 2014
Police Fire
All Others General Administration
Transfers Parks & Recreation
General Government
Summary of Appropriations
2012-2014
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2012 2013 2014
CATEGORY Actual (1) Budget (1) Budget
Salaries Wages and Employee Benefits $122,039,259 $121,361,267 $137,290,586
Supplies and Materials 5,898,410 6,697,932 6,403,155
Repairs and Maintenance 5,997,377 6,500,607 6,796,658
Contractual 20,759,135 20,557,903 20,914,528
Capital Outlay 167,650 400,062 380,000
Debt Service 4,411,421 2,396,042 1,323,343
Transfers 27,135,345 13,297,347 11,156,260
Net City Expenditures $186,408,597 $171,211,160 $184,264,530
Staffing Level 1,676 1,696 1,708
Ratio 9.01 9.92 9.28
GENERAL FUND SUMMARY
EXPENDITURES BY CATEGORY
(1) 2012 Actual expenditures were adjusted to reflect the consolidation of the River Market,
Golf, Fitness and Aquatics, and Zoo Enterprise Funds with the General Fund.
8.50
9.00
9.50
10.00
2012 2013 2014
STAFFING LEVEL PER MILLION DOLLARS BUDGETED
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