2016 Annual Operating Budget
City of Little Rock, Arkansas
On the Cover:
In September 2015, the Main Street Creative Corridor’s Low Impact Development (LID)
streetscape was dedicated. The pedestrian and environmentally friendly streetscapes
along four blocks of Main Street contain LID features such as bioswales, porous pavers,
rain gardens, and biodiverse vegetation.
The Creative Corridor is a mixed-use development project which is restoring the vitality
of Main Street by creating an arts district. Recent public art installations and the clustering
of creative organizations are transforming the Creative Corridor into a downtown hub.
The cover features the Creative Corridor logo as well as Lorri Acott’s Peace sculpture.
Initial planning and design for the Creative Corridor was funded by a 2011 Our Town grant
from the National Endowment for the Arts. The plan, created by the University of Arkansas
Community Design Center and Marlon Blackwell Architects, has received over ten
international, national, regional and local awards.
A variety of public and private entities have been partners in the Creative Corridor
including the Arkansas Natural Resources Commission, the Downtown Little Rock
Partnership, ArtPlace America, the Educational Foundation of America, the National
Endowment for the Arts, and the Environmental Protection Agency.
(Photo of the banner by Scott Whiteley Carter; photo of the sculpture by Kelly Quinn)
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City of Little Rock, Arkansas 2016 Operating Budget
City of Little Rock
2016 Annual Operating Budget
Bruce T. Moore
City Manager
Prepared by:
Department of Finance
Sara Lenehan, Finance Director
LaVerne DuVall, Budget Officer
1
The enclosed 2016 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 2016 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, 2015.
In order to receive this award, a government unit must publish a budget document that
meets program criteria as a policy document, as an operation guide, as a financial plan,
and as a communications medium.
The award is valid for a period of one year only. We believe our current budget document
continues to conform to program requirements, and we are submitting it to GFOA to
determine its eligibility for another award.
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TABLE OF CONTENTS
INTRODUCTION
Page
Title Page ............................................................................................................. 1
Budget Award ........................................................................................................ 3
Table of Contents ................................................................................................... 5
Little Rock at a Glance ......................................................................................... 9
City of Little Rock Board of Directors ................................................................... 11
How to Use the Budget Document ...................................................................... 13
Management Team .............................................................................................. 17
City of Little Rock Organizational Chart by Fund Responsibilities ...................... 19
City of Little Rock Operating Fund Structure ....................................................... 20
City Manager’s Transmittal Letter ........................................................................ 23
Overall City Goals and Objectives .................................................................. 39
THE BUDGET PROCESS
The General Government Budget Process ......................................................... 43
Amending the Budget .......................................................................................... 46
Budget Policies .................................................................................................... 47
Other Budget Procedures ................................................................................ 48
FINANCIAL STRUCTURE
Little Rock's Financial Structure........................................................................... 51
Funds Controlled by the Governing Body .......................................................... 51
Fiscal Policies ...................................................................................................... 57
Other Agencies .................................................................................................... 64
BUDGET SUMMARIES
Budget Summaries .......................................................................................... 67
2016 Operating Fund Budget Summaries Graph ............................................... 68
General Fund Activity Graph .............................................................................. 69
Budget Summary by Fund Type .................................................................... 70
General Government Summary. .................................................................... 71
Special Revenue Funds. ................................................................................. 72
Capital Project Funds. ................................................................................... 75
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TABLE OF CONTENTS (CONTINUED)
Enterprise Funds ........................................................................................... 79
Internal Service Fund ....................................................................................... 81
Fiduciary Funds ............................................................................................. 82
Debt Service Funds ....................................................................................... 84
2016 Long Term Forecast ............................................................................... 87
REVENUES
All Funds Operating Revenue Sources Graph ................................................... 91
All Funds Operating Revenue Summary ............................................................. 92
General Fund Summary of Revenue................................................................... 93
All Funds Operating Revenue Detail ................................................................... 94
Revenue Trends .................................................................................................. 99
General Fund Revenue Sources and Trends Graph ....................................... 115
EXPENDITURES
All Funds Expenditures by Classification Graph .............................................. 117
All Funds Department Budgets Summary ........................................................ 118
Summary of General Government Appropriations Graph ............................... 119
General Fund Summary Graph ....................................................................... 120
Operating Budget Detail ................................................................................... 121
Staffing Summaries........................................................................................... 125
Other General Fund Budget Expenditures ...................................................... 128
Service Program Graph .................................................................................... 129
Service Program Category ............................................................................... 130
Public Safety Revenue and Expenditure Comparisons ....................................132
Public Safety Operating Expenditures as a Percentage of General Fund ...... 133
CAPITAL IMPROVEMENTS
Capital Funding. ................................................................................................ 135
Capital Project Funds Provided by Bond Issues .............................................. 135
Capital Project Funds Provided by Other Sources........................................... 136
2016 Capital Improvements ........................................................................... 141
2016 Major Capital Projects ......................................................................... 142
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TABLE OF CONTENTS (CONTINUED)
Significant Routine Capital Expenditures .............................................. 142
Significant Non-Routine Capital Expenditures....................................... 142
Other Significant Non-Recurring Capital Improvements ...................... 143
Capital Funding Activity Graphs ................................................................... 158
DEBT MANAGEMENT
Debt Management ......................................................................................... 159
City’s Legal Debt Margin .............................................................................. 159
Debt Applicable to Debt Limit 2005 – 2015 .................................................. 160
Summary of Bond Indebtedness ................................................................... 162
Future Debt Service ..................................................................................... 163
GENERAL FUND DEPARTMENTS
Mayor ............................................................................................................... 165
General Administrative ..................................................................................... 169
Board of Directors ..............................................................................................175
Community Programs ........................................................................................179
City Attorney ......................................................................................................185
District Court First Division ............................................................................ 191
District Court Second Division ....................................................................... 197
District Court Third Division ...............................................................................203
Finance ..............................................................................................................209
Human Resources .............................................................................................217
Information Technology .....................................................................................223
Planning and Development ...............................................................................229
Housing and Neighborhood Programs .............................................................235
Public Works General ...................................................................................... 241
Parks and Recreation ........................................................................................247
River Market .................................................................................................... 253
Golf. ................................................................................................................... 257
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TABLE OF CONTENTS (CONTINUED)
Jim Dailey Fitness and Aquatic Center ............................................................ 263
Zoo .................................................................................................................... 269
Fire .................................................................................................................... 275
Police ................................................................................................................ 281
SPECIAL REVENUE FUND DEPARTMENT
Public Works Street ......................................................................................... 287
INTERNAL SERVICE FUND DEPARTMENT
Fleet Services ................................................................................................... 293
ENTERPRISE FUND DEPARTMENTS
Vehicle Storage Facility .................................................................................... 299
Waste Disposal ................................................................................................. 305
APPENDIX
State and City Budget Statutes ........................................................................ 311
Statistical Information ....................................................................................... 314
Glossary of Key Budget Terms ........................................................................ 325
Glossary of Key Acronyms Terms ................................................................... 332
8
LITTLE ROCK AT A GLANCE
On April 9, 1722, French explorer Benard de La Harpe noticed an outcropping of rock on
the southern bank of the Arkansas River and dubbed it “La Petite Roche.”
Eighty years later, the first residence was built for a fur trapper and trader. Since 1812,
Little Rock has grown from that one person to become the Capital City of Arkansas with
a population of 193,524. The metropolitan area population is 729,135 with more than
1.033 million people living within 70 miles of Little Rock.
The La Petite Roche rock formation created a natural harbor which made Little Rock an
early center of commerce for the region. 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 4.8%.
New businesses and housing opportunities are bringing people back to the City’s core to
live, shop, work and play. The River Market district is home to many restaurants, shops
and offices as well as attractions such as the Clinton Presidential Center and Park,
several other museums, and an expanding nationally-recognized bike trail system.
In addition, the Main Street Creative Corridor, MacArthur Park area, SoMA (South Main)
and renovation of Robinson Center Music Hall are some of the other exciting projects in
the City’s core. Redevelopment continues in the City’s older neighborhoods and the City
is experiencing new growth in areas to the west and southwest.
Medical facilities in the Little Rock area provide efficient, comprehensive service to more
than two million individuals throughout the state. The major area hospitals provide bed
space for approximately 2,800 patients. Included are a large number of specialty clinics
and outpatient surgery centers that are continuing to expand.
Diverse and quality educational opportunities are available in Little Rock. The University
of Arkansas for Medical Sciences continues to garner international attention for ground
breaking medical research and procedures. The University of Arkansas at Little Rock is
a metropolitan university educating 12,000 students in undergraduate and graduate
programs, including the William H. Bowen School of Law. In addition, Little Rock is the
home the University of Arkansas Clinton School of Public Service as well as 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 City offers over sixty parks featuring a variety of landscapes and recreational
opportunities. The Little Rock Zoo welcomes over 300,000 visitors each year and features
the Arkansas Carousel, which is the only functioning over-the-jumps style of carousel in
operation in the world.
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In September 1957, the eyes of the world were on Little Rock as nine African American
children tried to integrate Little Rock Central High. Governor Orval Faubus attempted to
delay the start, first through the courts and then by the National Guard. Eventually,
President Dwight Eisenhower federalized the National Guard and replaced them with
members of the 101st Airborne Division of the Army. On September 25, the nine African
American students entered the school and began their school year. Today, Central High
School continues to educate over 2,000 students of all races. The school is the only
functioning high school that is also part of the National Park Service.
Throughout the 1950s and 1960s, Little Rock undertook efforts to attract more businesses
to the area. During this period, the Little Rock Air Force Base and Little Rock Port
Authority were established. Both continue to be major contributors to Little Rock’s
economic vitality to this day.
In the 1990s, the City of Little Rock engaged community-wide goal-setting programs.
Future Little Rock led to the creation of many initiatives including the establishment of
innovative Prevention, Intervention & Treatment programs; neighborhood resource
centers; and the River Market district. The city also worked to expand citizen engagement
through enhanced participation in neighborhood associations.
As the 2000s dawned, Little Rock welcomed thousands of visitors for the opening of the
William Jefferson Clinton Presidential Center and Park. In 2013, Little Rock was named
#1 on the Kiplinger’s list of Best Places to Live. It has also received recognition by Forbes
as a great place to do business and to retire.
Today, Little Rock offers wonderful opportunities for visitors: a City rich in history and
culture; many recreational opportunities; downtown entertainment; an energetic business
climate; and a major emphasis on quality of life initiatives for citizens and visitors alike.
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Director Dean Kumpuris
Position Eight
Director Gene Fortson
Position Nine
Director Joan Adcock
Position Ten
Director Brad Cazort
Ward Four
Director Doris Wright
Ward Six
Director B. J. Wyrick
Ward Seven
Director Erma Hendrix
Ward One
Director Ken Richardson
Ward Two
Director Kathy Webb
Ward Three
Mayor Mark Stodola
Vice Mayor Lance Hines
Ward Five
Board of Directors
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City of Little Rock, Arkansas 2016 Operating Budget
HOW TO USE THE BUDGET DOCUMENT
This section is designed to explain and simplify the use of this document. It will
acquaint you with the types of information you can expect to find such as:
Sources of funding for City Services
Where and how resources are utilized
Services provided by City Departments
Policies and objectives for the upcoming year
Definition - What is a Budget Document?
The budget document presents the City’s financial management plan for the
coming fiscal year. The budget outlines the day-to-day functions of City
departments for a one-year period and includes planned expenditures for major
capital projects. The Mayor is responsible for enforcing the spending limits
established in this plan.
Each year, the City establishes a budget for operations in the coming fiscal year,
January 1 to December 31. The budget is based on estimates of projected
revenues and other funding sources. Appropriations for City programs are
recommended based on available resources and priorities set by the City Board
of Directors.
As required by law, the Mayor submits a recommended budget to the Board of
Directors. The Board of Directors conducts an extensive review of the
recommended budget and holds several public hearings to receive citizen input.
Once any necessary modifications are made, the Board of Directors adopts the
Budget Ordinance. Upon completion, the Budget Document is published.
The budget must be adopted on or before December 30. A calendar of events
for budget development activities for fiscal year 2016 is included in this document
to more adequately describe the budget development process.
The 2016 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 2016 Operating Budget
Departments in the General Fund are organized as follows:
General Administration
Board of Directors
Community Programs
City Attorney
District Court First Division
District Court Second Division
District Court Third Division
Finance
Human Resources
Information Technology
Planning & Development
Housing & Neighborhood Programs
Public Works
Parks & Recreation
River Market
Golf
Jim Dailey Fitness & Aquatics
Zoo
Fire
Police
The other major fund types are described below:
1. Special Revenue Funds – These funds are utilized to account for revenues
that are legally restricted to expenditures for specific purposes, e.g., street
fund and grant funded programs.
2. Enterprise Funds – Proprietary funds in which the services provided are
principally supported through charges to the users of the services, e.g., solid
waste fund, vehicle storage facility and parking garages.
3. Internal Services Fund – Funds that provide services to other parts of the City
organization, e.g., motor pool, vehicle maintenance and insurance.
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City of Little Rock, Arkansas 2016 Operating Budget
Payments to the Internal Services Fund are not reflected as transfers, but are
included as line items within the budgets of the departments in all operating
funds.
Operating Flow of Funds
Revenues are deposited into the General Fund as a result of specific activities.
For example:
General Fund Enterprise Funds
Property Taxes Service Rates
Sales Taxes Sanitation Fees
Licenses & Permits Compost Sales
Expenditures are made from the General Fund to support activities. For
example:
General Fund
General Fund Departments - Police, Fire, Parks & Recreation, etc.
Personnel, supplies and materials, repairs and maintenance, contractual,
capital outlay, debt service, and transfers out.
Enterprise Fund
Enterprise Funds – Waste Disposal, Vehicle Storage Facility, and Parking
Garages.
Personnel, supplies and materials, repairs and maintenance, contractual,
closure/post closure, depreciation, debt service, and transfers out.
Departments within the General Fund, Special Revenue Funds, and Enterprise
Funds make payments into the Internal Service Fund for Fleet operations and
vehicle and equipment maintenance.
Capital Budget
The Capital Budget consists of major capital projects, which often require more
than one year to complete and place in service. Examples of capital projects
include street and drainage construction, building construction, and park
development. A description of the source of funding for capital projects is
included in the Capital Improvements section of this document. In addition, this
section includes the estimated funds required for the ongoing operation and
maintenance of the assets resulting from the capital improvement projects.
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City of Little Rock, Arkansas 2016 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, 2015 priorities and results, 2016 goals, and applicable service
measures are presented.
Major Categories of expenditures include the following:
Personnel (Salaries, Wages and Employee Fringe Benefits)
Supplies and Materials
Repairs and Maintenance
Contractual Services
Closure/Post Closure
Capital Outlay
Depreciation
Debt Service
Transfers Out
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City of Little Rock, Arkansas 2016 Operating Budget
MANAGEMENT TEAM
Mark Stodola Mayor
Bruce T. Moore City Manager
James E. Jones Assistant City Manager
Dana Dossett Director of Community Programs
Tom Carpenter City Attorney
Alice Lightle District Court First Division Judge
Victor Fleming District Court Second Division Judge
Mark Leverett District Court Third Division Judge
Sara Lenehan Director of Finance
Stacey Witherell Director of Human Resources
Randy Foshee Director of Information Technology
Tony Bozynski Director of Planning & Development
Andre Bernard Director of Housing & Neighborhood Programs
Jon Honeywell Director of Public Works
Truman Tolefree Director of Parks & Recreation
Gregory Summers Fire Chief
Kenton Buckner Police Chief
Mike Blakely Director of Zoo
Wendell Jones Director of Fleet Services
Budget Report Production, Analyst, and Graphics
LaVerne DuVall Budget Officer
Silas Roaf Budget Management Analyst
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City of Little Rock, Arkansas
City of Little Rock Organization Chart by Fund Responsibilities
Citizens
Boards and
Commissions
Mayor and
Board of Directors
Assistant City
Manager
City
Manager
City
Attorney
Information
Technology
Public Works
Building Services
Street Fund
Waste Disposal
Enterprise
Planning and
Development
City Clerk
Housing
Neighborhood
Programs
District Courts
Fire
Parks and Recreation
RiverMarket
Golf
Jim Dailey Fitness and
Aquatics Center
Zoo
Police
Community Programs
Human
Resources
Finance
Parking Garages
Federal Programs
Fleet Services
Vehicle Storage
City of Little Rock
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OVERVIEW
General Fund:
Little Rock citizens passed an additional one (1)-cent local sales tax in September
2011 that was effective on January 1, 2012. Faced with significant challenges with
stagnant revenue in many areas due to the lingering effects of the economic
downturn, and one of the lowest local tax rates in the State, citizens supported the
new tax initiative. The City held several public hearings in each Ward to discuss
priority needs associated with Public Safety, Public Works, Jobs and Economic
Development, Parks and Recreation, Zoo and Tourism, and other priorities,
including fleet replacement, information technology needs, pension funding, and
public transportation. The priority needs were divided between on-going operating
needs and capital needs. The 5/8-cent permanent increase in sales tax for
operations is reflected in the FY16 Adopted Budget. The 3/8-cent sales tax for
capital projects, which expires in ten (10) years (2021), is discussed in detail in the
capital section of the budget document. In addition, in a special election held on
September 11, 2012, Little Rock citizens approved the issuance of Capital
Improvement Bonds not to exceed $105 million for street and drainage
improvements. Up to $73.5 million of the bonds are dedicated to street
improvements with the remaining $31.5 million available for drainage improvements
throughout the City. The bonds are secured by a three (3)-mill Ad Valorem Tax on
taxable property located within the City of Little Rock. The City issued $58,105,000
in bonds on July 24, 2013. A second series of bonds will likely be issued in 2017 or
2018.
The General Fund 2016 Operating Budget includes several significant changes from
the original 2015 Operating Budget. The 2016 Budget includes transfers in from the
2012-2021 Capital Improvements Fund (3/8-Cent Sales Tax) to fund the principal
portion of debt service due on short-term notes that were issued to accelerate key
capital projects funded by the sales tax. The debt service transfer represents
$7,315,303 of the transfer in revenue and related debt service expense in the 2016
operating budget. Debt service on the notes is included in the General
Administrative Department of the General Fund. The increase in debt service
reflects the issuance of a 2015 Short-Term Note to fund completion of the West
Central Community Center.
Sales Tax continues to be the leading revenue source for the City at approximately
50% of general fund revenues. The City’s sales tax is composed of a 1-1/8-cent
local tax on gross receipts, which includes the 1/2-cent sales tax in effect since
1994, combined with the new 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 3/8-cent sales tax for capital projects is not reflected in the operating
budget; however, it is reported in a separate capital projects fund. Revenue from
the operating portion of the new sales tax is committed primarily to filling vacant
Police Officer positions, supporting the twelve (12) new Fire positions for the West
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Little Rock Fire Station that opened in 2012, maintaining grant-funded positions in
the Police and Fire Departments and the addition of Code Enforcement Officers.
Also included is funding for neighborhood-based/community initiatives of $5.5
million, increased funding for building maintenance, expanded park maintenance,
Zoo deferred maintenance, operations and staffing, annual fleet replacement,
information technology staffing and maintenance, and new transit routes. Many of
the initiatives supported by the new sales tax were implemented during 2012 and
are maintained in 2016.
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 twelve (12) 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 less volatile than experienced in 2014, with ten (10) of the twelve
(12) months of 2015 demonstrating a favorable comparison to the previous year.
Overall results for 2015 were 3.56% better than 2014 results and exceeded the
Amended Budget by 0.49%, or $491,851. Based on the growth experienced in the
first nine (9) months of 2015, combined with an anticipated reduction in the State
sales turnback, the projected growth in the 2016 Budget includes 2.25% for the
City’s portion of County sales tax revenue and for the City’s local sales tax, and a
slight reduction in State turnback revenue, for a blended growth rate of 2.2%. Based
on the final actual sales tax revenue for 2015, including strong results for fourth
quarter sales, the City will need to experience growth of 1.7% to achieve the 2016
Budget of $101,575,420. Growth estimates are conservative due to impact of the
rebate program and increased Internet sales, which frequently exclude sales tax
collections.
Franchise fees from local utilities comprise approximately 15% of general fund
revenues. Franchise fees from Entergy Corporation, the electric utility, increased
approximately 12.2% in 2015 due to an announced rate increase of 3.4%. Storm
recovery charges were passed on to customers and weather impact rates and
usage. Franchise fees from Centerpoint Entergy, the gas utility, decreased
approximately 13% in 2015 with a decrease in usage of approximately 11.2%. The
decline in usage was primarily associated with low natural gas prices and the very
mild winter. 2016 Gas revenues are expected to be 7.4% lower than actual 2015
levels and 19.6% lower than 2014 levels. The reduced revenue estimates are a
result of lower natural gas cost. Entergy Arkansas and CenterPoint Energy have
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announced that they are requesting rate increases from the Arkansas Public Safety
Commission (PSC) later in 2016; however, these requests are usually modified and
reduced by the Commission. Franchise fees from telecommunication companies
and long-distance carriers are expected to decrease approximately 4%-5% after
several years of decline due to on-going competition from wireless companies. Of
the City’s utility providers, only Little Rock Wastewater Utility (LRWU) is anticipated
to have a rate increase in 2016. LRWU has scheduled rate increases in 2016, 2018
and 2019 to comply with the terms of the Sierra Club lawsuit to reduce sanitary
sewer overflows in Little Rock. The 2016 rate increase is approximately 4.75%.
Overall, 2016 franchise fee revenue is expected to be consistent with the Amended
2015 Budget.
Property Tax revenues account for approximately 14% of General Fund revenues.
Little Rock recently received its Original Charge for 2015 Property Taxes to be
collected in 2016. The Original Charge is approximately 1.6% over last year’s value
and represents the total amount assessed on real estate and personal property for
the previous year. The Original Charge for the previous year increased 3.43%. The
2016 Budget reflects an increase in Property Tax revenues of approximately 3.5%
from the 2015 Budget. In addition, the Budget includes separate 1-mill property tax
levies dedicated for the Police and Fire Pension Plans. I am pleased that overall
property values in Little Rock were maintained during the recent economic downturn
and continue to experience reasonable growth. The City has not experienced the
decline in values that were prevalent in other parts of the country.
City employees have demonstrated their dedication and professionalism by
providing quality service to the citizens of Little Rock. The General Fund Budget
supports 1,697 full-time equivalent (FTE) positions, a net increase of eight (8) FTEs
compared to 2015 staffing levels. Staffing includes twenty-seven (27) Police
positions previously funded by a grant award under the American Recovery and
Reinvestment Act COPS Program and eighteen (18) Firefighters previously funded
by a SAFER grant. In addition, special projects and grant awards support forty-two
(42) employees, including fifteen (15) new COPS positions. However, approximately
133 of the budgeted General Fund positions were vacant at the end of 2015. A
Police Recruit school of twenty-nine (29) Officers graduated on December 11, 2015.
Two recruit classes are planned for Fire and Police in 2016. With the passage of
the new sales tax, positions were filled and new positions have been added,
particularly in the areas of Public Safety and Parks & Recreation. The 2016
Operating Budget expenditures include $143,834,450 in personnel cost, net of an
anticipated $6 million in savings from authorized but vacant positions. The 2016
Budget includes salary increases of 2.5% for uniform and union positions in addition
to the Police and Fire step and grade progression. The 2.5% increases for the
American Federation of State, County and Municipal Employees (AFSCME) union-
eligible positions included a minimum annual increase threshold of $850. In
addition, funding for merit-based increases of an average of 2.5% for non-union,
non-uniform positions is provided. The City will join a new Comprehensive Health
Plan in 2016 at rates slightly lower than 2015 with an opportunity for employees to
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buy up to coverage with a lower deductible and co-pay. Premiums for employee
only coverage will continue to be provided by the City with no cost to the employee.
In addition, the budget includes health insurance coverage for designated part-time
employees in accordance with requirements of the Affordable Care Act. Benefit
changes approved by the State Legislature increased pension costs for Fire and
Police uniformed personnel. Pension costs increased from 20.58% to 21.58% of
payroll for uniformed Fire personnel and from 17.23% to 18.23% 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 9.58% of payroll for uniformed Police personnel. However,
the additional contribution will not result in any additional cost to the City. The
dedicated one (1)-mill property tax levy, annual City sales tax contribution of
$500,000, and other dedicated fines and fees are expected to fully fund the 9.58%
contribution. The City implemented a new Defined Benefit Pension Plan for non-
uniform personnel on January 1, 2014. The plan resulted from a yearlong review of
options to improve the retirement plan for non-uniform employees. There will be no
change in 2016 to the City contribution rate of 9% of salary to the plan, matched by
employee contributions of 4.5%. Pension costs for Court Clerks is unchanged at
14.5%, and the Judges’ Pension rate increased from 25.49% to 25.55%. 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
and benefits and the increased number of filled positions, the 2016 Budget for
personnel cost will increase approximately 2.8% from the 2015 Budget.
Fleet services and fuel costs are projected to decrease approximately $467,000 in
2016 in comparison to the 2015 Adopted Budget. The 2015 Fuel Budget was based
on estimated unleaded and diesel fuel per gallon prices averaging $3.25. The cost
per gallon of fuel decreased substantially during 2015. In addition, the City opened
a new Compressed Natural Gas Station (CNG) in 2014 and has been converting
vehicles to CNG when practical. Fuel cost for 2016 is forecast at $2.50 per gallon
for unleaded and $2.75 per gallon for diesel. While the fuel cost per gallon has
decreased, the number of deployed vehicles has increased with additional staffing
in Police and Code Enforcement. The budget for fleet maintenance increased
slightly due to the aging fleet; however, as the annual fleet replacement schedule
progresses with funding from the passage of the sales tax, repair and maintenance
cost will be reduced.
The City issued a $5.9 million Short-Term Financing Note in 2015 to accelerate
completion of the West Central Community Center associated with the 3/8-cent
sales tax for capital projects and to purchase police vehicles and equipment. 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 from general revenues over a period of five (5) years. The principal
portion of the new note that is related to the West Central Community Center will be
funded by a transfer to the General Fund from the proceeds of the 3/8-cent sales
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tax for capital projects. Principal and interest payments are included in the General
Fund Budget. Debt service payments will increase by approximately $1,247,000 in
2016 due to the addition of the 2015 note.
Funding of the Pulaski County Jail was continued in order to provide space for
prisoners in accordance with the City’s primary focus on Public Safety. In addition,
an extra allocation is available from a $20 local jail fine to contribute toward
operations for expanded Pulaski County Jail space. Combined, the funding for the
jail is budgeted at $1,854,576.
A Homeless Services Task Force was established in 2006 to end chronic
homelessness within our community. The City of North Little Rock has partnered
with Little Rock to financially fund the Jericho Way Day Resource Center. The
services provided to homeless individuals and families are focused on finding
housing, job referral, and case management services, medical, dental and
psychiatric assistance. In addition, both municipalities are working with the various
support groups in Central Arkansas as part of the on-going process to address the
needs of homeless individuals and families.
The City is appropriating approximately $5.5 million for Children, Youth and Family
Programs, including youth employment, skills center funding, and re-entry
programming in 2016 as part of City’s emphasis to foster and enhance youth and
community development. In addition, Community Programs Staff is completing
development of a Youth Master Plan following a series of community forums with
Little Rock citizens. 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
2016. In addition, the City has expanded the program to include additional entry-
level positions available in other City Departments.
Other new programs receiving funding in the 2016 Budget include a pilot
neighborhood housing rehabilitation program, a public service announcement
program, operating expenses for the West Central Community Center beginning in
the 3
rd
Quarter of 2016 and operating expenses for the new Pankey Police
Substation in West Little Rock.
The 2016 Budget includes a contingency allocation of $1 million or .5% 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.
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2015 Accomplishments
Little Rock Police Department: The Little Rock Police Department (LRPD) began
remodeling of the Josephine Pankey Community Center to include a Police
Substation. An upgrade to the 311 Customer Service Response System started in
late 2014 continues with Phase II, which will allow citizens to access City services
utilizing mobile technology which will greatly increase service delivery to the citizens
of Little Rock. A total of 130,420 requests for City services were made utilizing the
enhanced 311 System. In 2015, the LRPD graduated two (2) Basic Recruit Schools
and one (1) Certified Officer Accelerated Training (C.O.A.T.) Course that placed
forty four (44) recruits within the Departmental ranks. In addition, five (5) Little Rock
Fire Department personnel graduated from the Basic Recruit School. LRPD is
planning to start two (2) recruit classes in 2016, with a goal to hire eighty (80)
additional recruits. Staff continues to work closely with the Human Resources
Department to increase the number of viable candidates for both Police and the 911
Call Taker positions. Through these efforts, the LRPD saw the highest number ever
for both pass and show rates during the structured interview process.
Little Rock Fire Department: In 2015 the Little Rock Fire Department (LRFD)
attained a Class I status through the Insurance Services Organization (ISO), one of
only 147 departments in the United States to achieve this distinction. LRFD
continued to provide quality services, responding to more than 29,778 fire and
emergency calls in 2015. During the year, the Department completed an extensive
annual report for distribution to constituents and partnered with Rock Region
METRO to initiate a program to place the first AED (Automatic External Defibrillator)
on a City bus. The Prevention and Community Outreach Division expanded the
smoke alarm installation program to include persons with physical disabilities and
non-English speaking groups, and established a Hispanic Fire Safety Day in
conjunction with “Cinco De Mayo”. During 2015, the Operations Division acquired
five (5) new Engines, one (1) Aerial Platform Truck and one (1) Heavy Rescue Unit.
In addition, this Division added a Water Rescue Unit, initiated a program to provide
Fire Officer I training to all Fire Department personnel successfully completing the
promotional process to Captain, and established an internal peer support group for
Firefighters. The Training Division provided 1,364 training instructor hours equating
to 15,004 hours of student participation in training classes. Classes offered included
EMT refresher classes for 415 Firefighters, driver training, inflatable boat and swift-
water technical training. In addition, the Training Division conducted a twenty (20)-
week Recruit School. The Department continues to move forward with the
accreditation process through the Center for Public Safety Excellence.
Public Works: In 2015, Public Works Operations staff responded to 7,760 service
requests via the 311 Service Request System and swept 24,996 curb-miles of
streets. In addition, staff administered a successful Sidewalk Replacement
Program, using disadvantaged citizens re-entering the workforce. This program
constructed 22,857 square-feet (4,571 linear-feet) of sidewalks in Little Rock.
During 2015, staff coordinated the resurfacing of thirty-six (36) street segments
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totaling 83,014 feet (15.7 miles) of streets listed on the 2014 Resurfacing Program
and fifty-eight (58) street segments totaling 75,667 feet (14.3 miles) of streets listed
on the 2015 Resurfacing Program. A total of thirty (30) miles of City streets were
asphalt resurfaced during 2015. In addition, Staff continued to work toward the goal
of completing design work on all remaining Bond and Sales Tax projects and
construction contracts with design work completed on ninety (90) construction
contracts, or 82%, of the total. Bids were opened on twenty-seven (27) Bond and
Sales Tax projects in 2015. To date, 64% of all project contracts in the current 2013
– 2015 Street and Drainage Improvement Program have moved to construction.
Fleet Services: The City of Little Rock Fleet Services Department once again
achieved national recognition as being among the 100 Best Fleets of North America.
In addition, Fleet Services was recognized in the Government Fleet Magazine as
one of the 50 Leading Fleets, which recognizes operations that are performing at a
high level, particularly in fleet leadership, competitiveness and efficiency, planning
for the future, and overcoming challenges. Fleet Services opened a new
Maintenance Satellite Shop at the CNG Station at 6
th
and Ferry Street to serve
downtown customers more efficiently.
Finance: The Finance Department obtained the Government Finance Officers
Association (GFOA) Certification of Recognition for the 2015 Budget Presentation
and the GFOA Certificate for Excellence in Financial Reporting for the 2014
Comprehensive Annual Financial Report. In addition, staff coordinated with other
City Departments to conduct a program inventory process review of the 2015
Budget for the Board of Directors, and provided quarterly reporting to the Little Rock
Citizens Evaluation of New Tax (LRCent) Committee regarding the status of the new
local sales tax and on progress toward completion of capital projects authorized
under the 3/8-cent portion of the tax. In 2015, Finance facilitated the issuance of
$36.7 million in Library construction and refunding bonds and a $5.9 million short-
term note to fund Police vehicles and equipment and to complete the acquisition,
construction and equipping of the West Central Community Center. Other
significant accomplishments include recognition of the City’s Creative Corridor,
funded by multiple grants written by the Grant Division, featured at a variety of Main
Street, Downtown, Health Initiative, and Storm Water conferences; the
implementation of an electronic bid solution for the Purchasing Division; the
implementation of a new court management system; and the upgrade of the City’s
False Alarm System from a mainframe system to a web-based solution for billing
and processing of false alarm payments.
Information Technology: The Information Technology Department assisted the
City with an upgrade to the City’s 311 system that included a fully integrated mobile
app. Staff wrote and deployed a new Records Management System for LRPD, and
assisted the Little Rock District Courts with the migration from the in-house system
to the Arkansas Office of the Courts System. Staff upgraded the Broadband network
connections for Fire, Parks, and Housing & Neighborhood Programs departments.
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Human Resources: The Human Resources Department developed a new training
program titled “SET”, which stands for supervisory experience training, to provide
employees the opportunity to obtain equivalent supervisory experience in order to
apply for City jobs that have this requirement. The Department kicked off a
succession planning program to assist Departments in developing their employees
in order to prepare them for possible promotional opportunities.
Parks & Recreation: Construction of the 22,000 square-foot state-of-the-art West
Central Community Center was initiated and is targeted to be completed by the third
quarter of 2016. When completed, this facility will serve as a major focus and
community resource for this area of the City. The Department applied for and
received several grants, including a major $150,000 grant from the Coca-Cola
Company, in collaboration with the National Recreation and Parks Association, for
improvements to the skate park facility at Kanis Park. A Request for Qualifications
was advertised and a consultant was selected to update the 2001 Little Rock Parks
and Recreation Master Plan. In addition, the Department continued its efforts to
improve its trail system and completed a major link that connected the Southwest
Community Center, the Southwest Unit of the Arkansas Department of Health, and
the Department of Human Services Pulaski County (Southwest Unit) to the
surrounding neighborhood. The Little Rock Marathon had another successful race
that saw an increase in both registration and revenue. In addition, the Department
kicked off its Junior Volunteer Park Ranger Program.
Planning & Development: The Planning & Development Department coordinated
with the Planning Commission and the Board of Directors the review and adoption
of several Zoning and Subdivision Ordinance Amendments. Review of the City’s
future Land Use Plan for two (2) areas was completed and amendments were
approved by the Planning Commission and Board of Directors. The Complete
Streets and Low Impact Development Ordinances were adopted. Staff reviewed
and processed over 200 development related applications such as rezoning,
conditional use permits and planned developments. The Jump Start 12
th
Street
Core Plan was approved by the Planning Commission and Board of Directors.
Little Rock Zoo: In 2015, the Little Rock Zoo partnered with San Diego Zoo Global
Academy and Arkansas Children’s Hospital (ACH) to develop educational videos
for both ACH and the Ronald McDonald House. The Zoo joined with the Arkansas
Governor’s Committee on People with Disabilities and the Arkansas Spinal Cord
Commission to host 2,121 people for the annual People with Disabilities Day at the
Zoo, which assists the Governor in meeting his mission to enhance the quality of life
for those individuals. Staff worked with seventeen (17) members of the University
of Arkansas at Little Rock (UALR) Master’s Program lead by Dr. Debra Baldwin,
PhD to develop a comprehensive study of the History of the Zoo. A written report
titled Thriving in the Wild was produced and identified the major programs that have
shaped Arkansas’s only AZA-accredited Zoo. The Zoo was happy to announce the
birth of three (3) Penguin Chicks to contribute to the conservation of the SAFE
Animal Program. The Zoo closed out the year with upgrades to the Elephant Facility
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to ensure protected contact, and the Zoo purchased new x-ray equipment for the
hospital.
Housing & Neighborhood Programs: The Housing & Neighborhood Programs
Department continued to fill Code Enforcement Officer positions authorized through
the LRCent Initiative. Adding Spanish-speaking Code Enforcement Officers
continues to be a goal to better communicate with the Spanish-speaking community.
A Mobile Home Inspection Team was implemented to address the safe housing
needs of mobile home parks. Staff began using SecureView, which is a clear
material to board and secure vacant structures. The Little Rock Animal Village
received a donation of $70,000 which is being used to purchase a generator to
power the facility when outages occur. The Animal Village adopted a record 1,647
animals and saved a record 2,677 animals through adoption, relocation to other
states for adoption, and reuniting with owners. The Community Development
Division was able sell nine (9) new construction/rehab properties internally and with
partnerships with local Community Housing Development Organizations (CHDO).
New construction began on a vacant Land Bank property in the Stephens
Community. In addition, construction began on four (4) new units that should be
completed in early 2016.
Community Programs: In 2015, the Community Programs Department began
work on a comprehensive Master Plan for Children, Youth & Families that is focused
on updating and improving the programs and services that Little Rock’s citizens
need to thrive. The Department held a series of Community Forums with Little Rock
citizens to identify priority needs and established a Master Plan Advisory Committee
to assist with making a list of recommendations to meet those needs. Staff started
working closely with funded program providers to develop and implement a Youth
Program Quality Initiative to better determine the level of effectiveness of their
programs and find ways to improve program services. In addition, staff began
working with LRPD School Resource Officers, the Little Rock School District and
other State partners to increase collaboration for Juvenile Justice Reform in the
creation of a school-based Juvenile Diversion Program. Staff continued a Youth
Intervention Program (YIP) at Hamilton Learning Academy with targeted referrals to
City-funded programs. A new staff position, Community Resources Manager, was
created to address the identified priority community needs through various City-
funded programs and/or City partnerships developed specifically to meet them. In
addition, a new Re-Entry Coordinator was hired to further expand services and
opportunities to assist those returning from a correctional facility to develop
employability and life skills that will lead to full-time, permanent employment. A
“Young Lungs at Play” Marketing Campaign was created to increase awareness of
the negative effects of smoking around children.
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 several years, the City has been unable to meet this goal. The
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restricted reserve is currently $9,418,000. The 2016 Budget includes a contingency
allocation of an additional $1 million. Following the completion of the 2015 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.
2016 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.
Complete the remaining street and drainage sales tax projects for the 2013
– 2015 three (3)-year infrastructure improvement cycle and begin
implementation of the sales tax plan for the second three (3)-year cycle of
Street and Drainage Projects (2016 – 2018) established per the Ward
community meetings.
Continue progress on Street and Drainage Improvement Projects funded by
the 2013 Capital Improvement Bonds and ensure 85% of bond proceeds are
expended by July 23, 2016.
Complete construction and open the West Central Community Center.
Update the Parks Master Plan.
Complete and open the Pankey Police Substation in West Little Rock.
Hire fifteen (15) new Police Officers with COPS Grant funding.
Complete the development of the Youth Master Plan
Begin a Neighborhood Housing Rehabilitation Pilot Program
Provide Public Service Announcements to citizens
Provide $5.5 million in funding for Children, Youth, and Family Programs,
including youth employment, skills center funding, and reentry programming,
to continue the program to train and employ disadvantaged persons for
construction and maintenance of sidewalks, and to expand the program to
include other entry level positions in other City Departments.
Continue the City’s focus on economic development and sustainability.
Economic Outlook
The primary challenge facing the City of Little Rock remains providing a full
complement of services that satisfy the needs of citizens, balanced with the
resources available to the City, in an efficient, cost effective, and transparent
manner.
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The latest comparative figures for the City of Little Rock show unemployment at
4.2%, compared with a U.S. average of 5%, according to data from the United
Stated Department of Labor, seasonally adjusted for local figures by Metroplan.
According to Metroplan, the City of Little Rock had approximately 6,300 unemployed
residents as of December 2012. This number had decreased to approximately
3,800 unemployed residents by December 2015, representing just 4% of the labor
force and a decline of 32% in two (2) years. Little Rock remains a vital employment
center, accounting for approximately 53% of all jobs, by place of work, in the Little
Rock-North Little Rock metropolitan area. A large component of the City’s workforce
is in the areas of health care, education and public administration. These sectors
are less vulnerable to national employment trends.
The Metroplan economic report for early 2016 states that Little Rock retail sales had
a good year in 2015. The year saw completion of the Gateway Town Center near
the intersection of Interstate 430 and Interstate 30 in Southwest Little Rock. The
total inflation-adjusted boost to retail sales over the previous year of 3.6% matches
closely with the 3.9% total gain in retail square-footage due to the new Center’s
construction, as reported in the 2015 Office/Retail Industrial Lease Guide from
Arkansas Business. Per Metroplan, the City rarely sees retail additions of this size.
The general trend in recent years has been for retail sales to grow very slowly,
actually declining after the inflation adjustment; therefore, it is likely that the jump in
sales experienced during 2015 was a one-time event, and that 2016 will see a
resumption of inflation-adjusted decline in retail sales, fueled by the rise in Internet
sales. U.S. Internet sales continued rapid growth accounting for 7.4% of all retail
sales. Internet sales have more than doubled in a decade, from less than 3% in
2006, and could easily reach 10% of total retail sales by 2020. Internet sales have
an advantage over local retailers in Arkansas and other states that are unable to
collect Sales and Use Tax on online sales. The City is supportive of the Remote
Transactions Parity Act before Congress, which would enable municipalities to
collect sales tax from retailers that do not have a physical presence in the State.
With sales tax as the primary revenue source for the City of Little Rock, this
legislation is critical to retaining the resources required to sustain local services.
While State Law requires that citizens prepare use tax returns for such purchases,
this method of tax collection is very ineffective.
The regional housing market has seen less growth than the U.S. average over the
last several years. Single-Family Housing Permits began to rebound during 2012,
moving to an average of thirty (30) monthly; the highest level since 2008, and were
nearing an average of forty (40) units per month by the end of 2014; however, the
average dropped to 26.5 during 2015. The Metroplan report on Little Rock’s
Economy in early 2016, describes the Little Rock housing market as follows: Multi-
family housing construction has increased in relation to Single-Family Permits,
growing to nearly 60% of all new housing units from 2011 – 2015 compared with
36%-38% in the two (2) preceding five (5)-year intervals. There are several multi-
family projects proposed for 2016. Such projects often raise controversy concerning
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adjoining land uses; however, affordable housing can be an important component
of economic development. 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 that opened in September 2015. The project,
called MacArthur Commons, includes fifty-nine (59) units at the corner of East
Capitol and River Market Avenues. The development has been a great success,
designed to provide upscale, yet affordable housing for residents looking to live
downtown. By November, the complex was 97% occupied. In addition, Moses
Tucker expects to complete another development in May 2016, a thirty-six (36)-unit
mixed-use project across the street, called Legion Village. During the second
quarter of 2015, over 400 new units opened in Little Rock including 262 units at LIV
Riverhouse, located at 1200 Brookwood Drive, and 144 units at The Pointe Brodie
Creek, phase II, at 3400 South Bowman Road in Little Rock. Another 500 units are
approved for Bowman Pointe, and a planned development of 250 units has been
approved farther south on Bowman. The occupancy rate in newly built complexes,
those opened since 2010, is 95%. The central market in Little Rock is the most
popular in the county. In addition, nine (9) apartment complexes were sold in
Pulaski County in the second quarter. The highest price paid was $36 million for
Park Avenue Lofts, a luxury apartment complex in Little Rock with 258 units. The
price per unit was approximately $139,000 and the price per square-foot was almost
$150. The buyer’s CEO, Jack Fiorella of Equity Resources LLC, of Birmingham,
Alabama, said, “Equity Resources has great confidence in the Little Rock market.
We expect that our strategy to own high-end luxury communities will be well
received by the community.”
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, Outlets at Little Rock opened in October 2015
at the same location with approximately sixty-nine (69) retail stores, bringing
approximately 1,000 jobs to the area. The center is anticipated to have
approximately seventy-five (75) stores when it is complete. Outlet shopping centers
are unique and traditionally become destinations and magnets for retail activity. The
Outlets of Little Rock is the only outlet center in the state. The shopping center’s
location guarantees visibility. More than 40% of Arkansas’ population lives within
sixty (60) miles of the Outlets. In addition, outlet malls are less impacted by Internet
sales because many of the discounts offered are not available online. Developer
Tommy Hodges estimated that the Outlets will collect nearly $2.3 million per year in
City sales taxes and around $1.5 million per year in County sales taxes. The
Gateway’s Grove Project is on the northeast quadrant of the Gateway Town Center.
It is envisioned to become an entertainment district with hotels, restaurants and
other attractions. A pedestrian promenade would link The Grove’s restaurants,
shops and venues to the Outlets and Bass Pro Shop. Construction is underway at
The Grove on Arkansas’ first Dave and Buster’s Restaurant and Video Arcade.
Plans call for 10,000 square-feet of retail and restaurant space to be completed later
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in 2016 followed by additional space for entertainment destinations, hotels and other
retailers. Most recently, developers announced that Movie Tavern, a dine-in movie
theater chain, is planning a new theater at the shopping center.
In July 2014, the Robinson Center Music Hall in Downtown Little Rock was
temporarily closed for a $68 million renovation project. The building will increase
from 133,500 square-feet to 138,000 square-feet. The overhaul includes restoring
the exterior, re-working audience entrances, improving performance hall acoustics
and seating, upgrading the loading area and building a new conference center and
grand hall on the north side of the performance hall. The upgrades are expected to
be completed by 2016.
In December 2014, Arkansas Business reported a 311,684 square-foot FedEx
Corporation Distribution Center to be located in Southwest Little Rock. The $24.9
million project is forecast to take a year and will involve a new street, Industry
Parkway, which will link with Alexander Road.
In June 2015, the American Taekwondo Association International (ATAI) broke
ground on its new $13 million, 25,300 square-foot headquarters in Little Rock along
Riverfront Drive, complete with a museum, video production studio and international
martial arts training. ATAI’s annual World Expo, held in Little Rock’s Statehouse
convention Center, brings in tens of thousands of visitors and competitors each
year.
In December 2015, Arkansas Business reported that FIS will sponsor a start-up
accelerator in Little Rock devoted to financial technology. FIS, based in
Jacksonville, Florida, is a global banking technology services provider whose origins
trace back to Systematics of Little Rock. It maintains a large campus in West Little
Rock that employs approximately 1,300 workers with a focus on product
development. The FinTec Accelerator will live out of the Venture Center, which
shares space with the Little Rock Technology Park at 107 East Markham Street in
Downtown Little Rock. Launched in 2014, the Venture Center has grown to more
than 200 members, seventy-six (76) active start-ups and thirty-seven (37) trained
mentors who have led more than 340 mentor sessions. The center has produced
forty-four (44) of its Pre-Accelerator Program start-ups. Six (6) of its member start-
ups have raised more than $2.25 million in venture capital.
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
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place an emphasis on small and mid-size cities, considering metro areas with a
population of one million or less that have good jobs, reasonably priced homes,
decent schools and access to great health care. Little Rock is very proud of this
ranking.
In addition, Little Rock was recently listed as No. 3 Best State Capital by USA Today
Readers; Choice 10 Best. The article had this to say about Little Rock, “A downtown
renaissance has transformed Little Rock into a city with culture, cuisine and
abundant outdoor activities. Visitors can rent a bike and pedal the sixteen (16)-mile
loop along the Arkansas River Trail, visit the Clinton Presidential Center and the
Little Rock Central National Historic Site, a National Park Service unit that interprets
the crucial role played by the school in the civil rights struggle.” The article may be
found at (http://www.10best.com/awards/travel/best-travel-worthy-state-capital/)
Bicycling.com/2016 recently named Big Dam Bridge in Little Rock as one of the
“Coolest Bike and Pedestrian Bridges in the US”. The Big Dam Bridge across the
Arkansas River in Little Rock is the longest pedestrian/cycling bridge that wasn’t
formerly a motorist or train bridge.
The City will continue to identify economic development opportunities that result in
the expansion, retention or start-up of businesses that create jobs and generate
sales tax, property tax or other forms of revenue for the City. $38,000,000, or 19.4%,
of the revenue anticipated from the 3/8-cent sales tax for capital projects is
dedicated to jobs and economic development over the next seven (7) years. The
funds will be utilized for port expansion, development of a research park, and job
recruitment and economic development infrastructure.
Closing: This budget is the financial and operating plan for the City of Little Rock
for 2016. The appropriations included provide for quality municipal services.
I want to recognize the many members of our City Staff that are actively serving in
our nation’s military and acknowledge the additional hours and duties the
Department Staff may be undertaking in their absence. To all of you, thank you for
your service.
The City of Little Rock has made great strides in the utilization of technology to
communicate with local citizens and businesses. The City’s website,
www.littlerock.org, is among the best and will continue to improve communication
efforts. In addition, the City is proud of our local government access channel LRTV,
which broadcasts information regarding the activities of the Little Rock City Board
of Directors through live and taped coverage of Board Meetings and other official
proceedings; and produces programming regarding municipal affairs. The City
recently launched a new LR 311 mobile app to enable citizens to access City
services. It is available for download through the App Store or Google Play Store.
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City of Little Rock, Arkansas 2016 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
Providing optimum service levels to the public as cost effectively as possible
to maintain a safe, healthy community
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City of Little Rock, Arkansas 2016 Operating Budget
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 2016 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 2016 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 2016 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 2016 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 City’s management team conducted 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 four (4) 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 in 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 grants or bond issues
were considered. The total costs of each project and the sources of funding
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City of Little Rock, Arkansas 2016 Operating Budget
required to finance each project are estimated. The FY16 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 2016 Budget
The 2016 Basic Budget reflects estimated costs for those programs which
were approved or received funding.
Goals
Goals are clear statements of a department’s mission, or purpose. Goals
pinpoint the reasons for the department’s existence and establish the
department’s direction and responsibility(s). Each department’s objectives
are linked to the dollar figure budget needed to achieve the goal.
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City of Little Rock, Arkansas 2016 Operating Budget
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 2016 budget follows:
August Finance sends letters to Outside Agencies for 2016
funding requests. (Response deadline September)
August Affordable Care Act look back period ends. Finance
reviews final part-time report to determine which
employees will have an additional health care benefit
in 2016.
August Departments review special project balances.
Finance Department sends out Personnel Model for
verification.
August Departments submit revenue estimates, proposed
rate adjustments and new fee recommendations and
dedicated grant match requests to Finance,
September Departments prepare program inventory worksheets
for review and discussion with the Board of Directors
in a preliminary budget workshop.
September Departments complete review of 2016 Personnel
Model with necessary changes reported to HR and
Budget Office.
September City Manager reviews Outside Agency Requests.
HR provides 2016 new benefit rates to Finance.
September 2016 Budget instructions, departmental budgets and
Personnel Model distributed. Finance assists
departments with budget process.
September Fleet Services submits 2016 budget to Finance and
departments.
October Departments submit 2016 operating and capital
budget requests to Finance. Community Programs
submits CYF/PIT recommendation to City Manager.
October Finance verifies budget requests. Finance updates
financial trends, revenue forecast, and reviews new
revenue options.
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City of Little Rock, Arkansas 2016 Operating Budget
October City Manager reviews departmental budget requests
and CYF/PIT recommendation. Budget meetings
held with departments.
October Board of Directors considers policy issues and
revenue projections.
October Board adopts 2016 mill levy Ordinance.
November Budget preparation continues. Meetings held with
Mayor to discuss preliminary budget.
Nov. – Dec. Union Negotiations
November Draft Budget distributed to Board of Directors. Board
Budget Workshop held.
December Public Budget Information Meetings held.
December Board of Directors adopts 2016 Budget Ordinance,
utility franchise Ordinances, and revenue rate
adjustments if applicable.
December Finance submits 2016 Budget Document data
requests to departments.
AMENDING THE BUDGET
During the fiscal year, adjustments may be required to refine the original adopted
budget. The approved budget may be amended as required in accordance with
the following protocol:
Revenues are reviewed monthly and quarterly and the projections are adjusted
if warranted.
Adjustments to transfer approved expenditure budgets from one organization
to another may be approved by the City Manager if less than $50,000.
Transfers in excess of $50,000 must be submitted to the Mayor and Board of
Directors for approval.
Requests for new appropriations may be submitted by the City Manager or at
the direction of the Mayor or Board of Directors and require authorization by
Board Ordinance.
Funds Controlled by the City Governing Body
The Funds controlled are:
General;
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City of Little Rock, Arkansas 2016 Operating Budget
Special Revenue;
Capital;
Proprietary;
Fiduciary; and
Debt Service.
The City’s financial policies are included in the Financial Structure section.
BUDGET POLICIES
The City has developed and utilized budget policies that are designed to
accomplish specific objectives and enhance the budget process. These policies
include:
The 2016 budget includes salary increases of 2.5% for uniform and union
positions in addition to the Police and Fire step and grade progression. The
2.5% increases for the American Federation of State, County and Municipal
Employees (AFSCME) union eligible positions included a minimum annual
increase threshold of $850. Other union benefit modifications included the
addition of vision insurance for the Fraternal Order of Police (FOP) and the
International Association of Firefighters (IAFF), an increase in the carry-over of
vacation from 35 days to 40 days for FOP members, and an increase in the
formula for holiday premium pay for IAFF members. In addition, funding for
merit based increases of an average of 2.5% for non-union, non-uniform
positions is provided.
Positions that are vacant at the time the budget is adopted are budgeted at the
mid-range salary based on grade, providing some budget flexibility in the
recruiting process. In addition, an estimated annual savings generated from
vacant positions is included in the budget as a reduction to personnel cost. As
vacancies occur, the savings is utilized to reduce personnel budget allocations
by department.
The City utilized the in-house payroll system to aid in the development of the
budget for salary and benefit costs for 2016. 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 without prior
approval by the Fleet Services Department Head and the City Manager.
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City of Little Rock, Arkansas 2016 Operating Budget
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 2016, 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.
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
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City of Little Rock, Arkansas 2016 Operating Budget
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 2016 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 reimbursements 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 utilized
to provide housing and housing assistance to qualifying citizens and to
improve neighborhood infrastructure.
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City of Little Rock, Arkansas 2016 Operating Budget
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 and revenue 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.
1998 Street and Drainage Fund – The Series1998A Bonds are issued for
the purpose of acquiring, constructing, equipping, renovating, expanding
and refurbishing certain street, sidewalk, curb, gutter, drainage and other
related infrastructure improvements, including payment of a portion of the
interest on the Series 1998A Bonds during the construction period. These
bonds were advance refunded in July 2007 by the 2007 Capital
Improvement Bonds.
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.
2004 Limited Tax General Obligation Refunding Bond – 2004 Limited
Tax General Obligation Refunding Bonds were issued to finance capital
improvements within the City of Little Rock, to fund capitalized interest and
to pay the costs of issuance of the Bonds. These bonds are limited tax
general obligations secured by all proceeds derived from the 3.3 mills
annual ad valorem tax located with the City. These bonds were redeemed
in April 2013.
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City of Little Rock, Arkansas 2016 Operating Budget
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. The bonds were refunded with the issuance of the 2015 Library
Construction and Refunding Bonds.
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.
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City of Little Rock, Arkansas 2016 Operating Budget
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.
Tax Incremental Financing 2014 Capital Improvement Bonds – Tax
Incremental Financing Capital Improvement Bonds in the amount of
$2,615,000 were issued in April 2014. The bonds are special obligations of
the City secured by and payable solely by a pledge of the incremental ad
valorem tax receipts derived with respect to the real property within the
City’s Redevelopment District No. 1. The bond proceeds were used to
finance the cost of acquisition, construction and equipping of a major street
system within Development District No. 1.
2015 Library Construction and Refunding Bonds – The Library
Construction and Refunding Bonds, Series 2015 are limited obligations of
the City of Little Rock payable solely from the collections of the Library tax,
payable through 2030. The Library bonds were issued to (ii) finance the
cost of acquiring, constructing and equipping the land and additional capital
improvements to the public City libraries owned and operated by Central
AR Library Systems; (ii) refund the City’s outstanding Library Construction
and Improvement Bonds, Series 2008 and Series 2009, and the City of Little
Rock Residential Housing and Public Facilities Board Capital Improvement
Revenue Bonds, Series 2007; and (iii) pay the costs of issuing the Bonds.
The bonds are limited tax obligations payable solely from a 0.9 mill annual
ad valorem tax.
Short Term Financing – This fund accounts for proceeds of Short Term
Financing notes issued to acquire capital equipment, buildings, building and
land 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.
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.
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City of Little Rock, Arkansas 2016 Operating Budget
Parking Garage Fund – This fund was created to account for the
operations of the City’s two parking garage facilities.
FIDUCIARY FUNDS CONTROLLED BY BOARDS OF TRUSTEES
An important benefit for City employees is a retirement plan. The City participates
in the state Local Police and Fire Retirement System (LOPFI) for all uniformed
employees hired after January 1, 1983. In addition, LOPFI administers the
Policemen’s Pension and Relief Fund. The following retirement funds are
administered by the City and cover substantially all other employees:
Firemen's Relief and Pension Fund
Non Uniform Defined Contribution Pension Fund
Non Uniform Defined Benefit
New 2014 Non Uniform Defined Benefit Fund
401(A) Pension Fund
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 Advertising & Promotion Commission
Little Rock Port Authority
Metropolitan Emergency Medical Services (MEMS)
Rock Region Metro
Arkansas Museum of Discovery
Arkansas Arts Center
Bill and Hillary Clinton National Airport
Central Arkansas Library System
Oakland Fraternal Cemetery
Mt. Holly Cemetery
Workforce Investment Board
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City of Little Rock, Arkansas 2016 Operating Budget
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 2016 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 2016 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 2016 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.
1. 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 2016 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. CONTINUING DISCLOSURE COMPLIANCE PROCEDURE
1. In December 2015, the City Board of Directors adopted Resolution No.
14,250 adopting policies and procedures related to the issuance of
municipal bonds and to adopt and implement the policies and procedures
contained in the Continuing Disclosure Compliance Procedure Policy
attached to the resolution.
2. The purpose of the compliance procedure includes:
a. Disclosure Responsibilities. The Issuer recognizes that the issuance
of Bonds often involves accessing the public capital markets and
involves certain obligations arising out of the federal securities laws,
including entering into a Continuing Disclosure Undertaking and
properly communicating with investors.
b. Issuer Commitment. The Issuer is committed to full compliance with
applicable securities law requirements for all of its outstanding and
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City of Little Rock, Arkansas 2016 Operating Budget
future financings that must comply with such requirements. This
Compliance Procedure is adopted by the Governing Body to improve
and promote securities law compliance and documentation.
3. The contents of the Compliance Procedure include:
a. Definitions
b. Purpose and Scope
c. Disclosure Compliance Officer; Training
i. Disclosure Compliance Officer Duties
ii. Assistance and Cooperation from Other Officials and
Employees
iii. Training
d. Continuing Disclosure Compliance File
i. Compilation and Maintenance of Continuing Disclosure
Compliance File
ii. Annual Continuing Disclosure Compliance Checklist
iii. Remedying Non-compliance
e. Issuance of New Bonds
i. Review Primary Offering Documents
ii. Review Continuing Disclosure Undertakings
iii. Update Continuing Disclosure Compliance File
iv. Update List of Bonds
f. Annual Report and Event Notice Filing
i. Annual Report Preparation and Submission
ii. Event Notice Submissions
E. RESERVES
1. All fund designations and reserves will be evaluated annually for long-term
adequacy and use requirements in conjunction with development of the
City’s five-year financial plan.
2. The General Fund goal is to set aside $10,000,000 or 10% of General Fund
revenues; whichever is greater, into a restricted reserve fund on or before
December 31, 2005; however, due to economic conditions in the past
several years, the City has not been able to meet this goal. The restricted
reserve is currently $9,418,000. The Board will consider increasing the
restricted reserve based on annual audited financial results...
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.
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City of Little Rock, Arkansas 2016 Operating Budget
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.).
F. 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.
G. 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).
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City of Little Rock, Arkansas 2016 Operating Budget
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 2016 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.
Rock Region Metro, formerly 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.
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.
Metroplan is a council of local governments that provides area-wide transportation
and other planning and support services to its members.
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 2016 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.
2014 2015 2016
Budget Budget Budget
Rock Region Metro $8,534,663 $8,686,869 $8,576,529
County Regional Detention Center 1,050,000 1,063,313 1,450,000
(1)
Arkansas Arts Center 400,000 550,000 700,000
(2)
Museum of Discovery 200,000 200,000 230,000
Chamber of Commerce 200,000 200,000 0
(3)
Metroplan 178,042 178,042 178,042
Downtown Partnership 160,000 175,000 195,000
PAGIS 135,800 135,800 135,800
Metro Little Rock Alliance 100,000 100,000 0
(3)
First Tee 91,500 191,500 191,500
County Bond Payment 56,100 56,100 56,100
St. Vincent 25,381 25,381 25,381
LR City Beautiful Commission 2,500 2,500 2,500
Total $11,133,986 $11,564,505 $11,740,852
(3) Funding was discontinued at the beginning of 2015 due to a law suit.
(2) The increase is primarily for building maintenance.
APPROPRIATIONS FOR OTHER AGENCIES
(1) The increase for the Pulaski County Jail support in combination with funds
available from the local jail fine special project in the amount of $386,687 will bring
total Pulaski County Jail support to $1,854,576. (consistent with the 2015 funding
level)
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Budget Summaries
City of Little Rock, Arkansas
Operating Budget 2016
BUDGET SUMMARIES
The following schedules summarize the audited 2014 operating results, the 2015
unaudited operating results, and the approved 2016 operating budget. The
summaries are organized by fund type in a manner that is consistent with the fund
organization in the City’s audited Comprehensive Annual Financial Report.
The Budget Summary by Fund Type is a recap of the seven (7) fund types included
in this section. This recap is followed by a budget summary for each of the
individual funds included in each fund type. 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 seven (7) types of funds included in the budget summaries are:
General;
Special Revenue;
Capital;
Enterprise;
Internal Service;
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 $28,249,736 $5,800,100 $0 $34,049,836
Sales Taxes 101,575,420 0 101,575,420
License and Permits 10,786,600 311,410 11,098,010
Intergovernmental 7,686,800 12,792,400 0 20,479,200
Charge for Service 10,054,277 18,600 21,458,445 12,714,282 44,245,604
Fines and Fees 2,812,371 0 2,812,371
Utility Franchise Fees 29,686,027 0 29,686,027
Investment Income 225,000 57,500 88,400 370,900
Miscellaneous 1,216,028 174,100 23,600 1,413,728
Transfers In 9,351,970 1,714,726 0 11,066,696
Total Revenues 201,644,229 20,557,426 21,881,855 12,714,282 256,797,792
Expenditures
Personnel 143,834,450 10,410,678 6,075,291 3,732,290 164,052,709
Supplies and Material 6,235,034 1,101,263 1,721,067 5,960,365 15,017,729
Repairs and Maintenance 7,254,786 2,732,712 2,869,127 497,350 13,353,975
Contractual 22,540,429 3,493,056 5,336,454 2,339,877 33,709,816
Closure/Post Closure 247,945 247,945
Capital Outlay 253,000 2,342,000 184,400 2,779,400
Depreciation and Amortization 1,849,000 1,849,000
Debt Service 8,961,606 622,875 9,584,481
Transfers Out 12,564,924 477,717 1,818,885 14,861,526
Total Expenditures 201,644,229 20,557,426 20,540,644 12,714,282 255,456,581
Net Change in Fund Balance 001,341,211 0 1,341,211
Fund Balances - Beginning 20,460,635 8,913,184 21,356,979 4,004,442 54,735,240
Fund Balances - Ending $20,460,635 $8,913,184 $22,698,190 $4,004,442 $56,076,451
2016 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
$220,000,000
General
Fund
Street Fund Enterprise
Funds
Fleet
Services
Fund
Revenues
Expenditures
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Police
$70,548,138
34.99%
All Other
$31,346,446
15.55%
Property
Taxes
$28,249,736
14.01%
Utility
Franchises
$29,686,027
14.72%
Sales Taxes
$101,575,420
50.37%
Transfers
$12,564,924
6.23%
General
Government
$29,977,808
14.87%
Fire
$47,365,844
23.49%
Uses of Funds
for 2016
Sources of Funds
for 2016
FY 2016 GENERAL FUND
Parks &
Recreation
$10,207,910
5.06%
All Other
$24,169,564
11.99%
Zoo
$6,810,041
3.38%
Licenses &
Permits
$10,786,600
5.35%
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INTERNAL DEBT
GENERAL SPECIAL CAPITAL ENTERPRISE SERVICE FIDUCIARY SERVICE
FUNDS REVENUES PROJECTS FUNDS FUND FUNDS FUNDS
2014
REVENUES: 202,406,544$ 33,641,416$ 26,957,773$ 21,250,281$ 14,192,443$ 40,840,491$ 22,080,948$
EXPENDITURES: 203,620,631 30,370,281 45,753,956 18,930,083 12,688,818 36,889,277 20,866,821
REVENUES OVER (UNDER)
EXPENDITURES (1,214,087) 3,271,135 (18,796,182) 2,320,198 1,503,625 3,951,215 1,214,127
BEGINNING FUND BAL. 35,524,709 11,352,312 99,045,396 18,563,994 2,603,208 141,841,274 20,167,140
ENDING FUND BAL. 34,310,621$ 14,623,448$ 80,249,214$ 20,884,192$ 4,106,833$ 145,792,489$ 21,381,268$
2015
REVENUES: 210,811,984$ 32,977,993$ 44,129,188$ 21,156,160$ 13,345,076$ 11,069,061$ 37,557,457$
EXPENDITURES: 209,374,723 31,374,682 37,176,276 20,683,373 13,447,467 18,564,177 40,713,249
REVENUES OVER (UNDER)
EXPENDITURES 1,437,261 1,603,312 6,952,912 472,787 (102,391) (7,495,116) (3,155,791)
BEGINNING FUND BAL. 34,310,621 14,623,448 80,249,214 20,884,192 4,106,833 145,792,489 21,381,267
ENDING FUND BAL. 35,747,882$ 16,226,759$ 87,202,126$ 21,356,979$ 4,004,442$ 138,297,373$ 18,225,476$
2016
REVENUES: 201,644,229$ 20,557,426$ -$ 21,881,855$ 12,714,282$ -$ -$
EXPENDITURES: 201,644,229
20,557,426 - 20,540,644 12,714,282 - -
REVENUES OVER (UNDER)
EXPENDITURES - - - 1,341,211 - - -
BEGINNING FUND BAL. 35,747,882 16,226,759 87,202,126 21,356,979
4,004,442 138,297,373 18,225,476
ENDING FUND BAL. 35,747,882$ 16,226,759$ 87,202,126$ 22,698,190$ 4,004,442$ 138,297,373$ 18,225,476$
CITY OF LITTLE ROCK
BUDGET SUMMARY BY FUND TYPE
FOR YEARS 2014 - 2016
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2014 2015 2016
GENERAL FUND
REVENUES: 191,675,088$ 197,462,150$ 201,644,229$
EXPENDITURES: 190,812,636 197,462,150 201,644,229
REVENUES OVER (UNDER)
EXPENDITURES 862,452 - -
BEGINNING FUND BALANCE 19,598,183 20,460,635 20,460,635
ENDING FUND BALANCE 20,460,635$ 20,460,635$ 20,460,635$
SPECIAL PROJECTS & SEIZED MONEY FUND
REVENUES: 10,731,456$ 13,349,834$ -$
EXPENDITURES: 12,807,995 11,912,573 -
REVENUES OVER (UNDER)
EXPENDITURES (2,076,539) 1,437,261 -
BEGINNING FUND BALANCE 15,926,525 13,849,987 15,287,248
ENDING FUND BALANCE 13,849,987$ 15,287,248$ 15,287,248$
TOTAL BEGINNING FUND BALANCE 35,524,709$ 34,310,621$ 35,747,882$
TOTAL REVENUES 202,406,544 210,811,984 201,644,229
TOTAL EXPENDITURES 203,620,631 209,374,723 201,644,229
TOTAL ENDING FUND BALANCE 34,310,621$ 35,747,882$ 35,747,882$
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
2014 - 2016
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.
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2014 2015 2016
STREET
REVENUES: 20,232,610$ 20,050,226$ 20,557,426$
EXPENDITURES: 17,166,207 20,050,226 20,557,426
REVENUES OVER (UNDER)
EXPENDITURES 3,066,402 - -
BEGINNING FUND BALANCE 5,846,782 8,913,184 8,913,184
ENDING FUND BALANCE 8,913,184$ 8,913,184$ 8,913,184$
SPECIAL PROJECT - STREET
REVENUES: 914,044$ 1,460,000$ -$
EXPENDITURES: 671,532 337,787 -
REVENUES OVER (UNDER)
EXPENDITURES 242,512 1,122,213 -
BEGINNING FUND BALANCE 141,636 384,148 1,506,361
ENDING FUND BALANCE 384,148$ 1,506,361$ 1,506,361$
SPECIAL PROJECTS
REVENUES: 4,440,797$ 3,636,265$ -$
EXPENDITURES: 4,290,404 3,528,642 -
REVENUES OVER (UNDER)
EXPENDITURES 150,393 107,623 -
BEGINNING FUND BALANCE 2,517,066 2,667,459 2,775,082
ENDING FUND BALANCE 2,667,45
9
2,775,082$ 2,775,082$
SPECIAL REVENUE FUND
S
OPERATING BUDGET
2014 - 2016
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ADOPTED
ACTUAL AMENDED BUDGET
2014 2015 2016
SPECIAL REVENUE FUND
S
OPERATING BUDGET
2014 - 2016
INFRASTRUCTURE
REVENUES: 1,002$ -$ -$
EXPENDITURES: 1,002 - -
REVENUES OVER (UNDER)
EXPENDITURES - - -
BEGINNING FUND BALANCE - -
ENDING FUND BALANCE -$ -$ -$
EMERGENCY 911
REVENUES: 1,306,870$ 1,257,228$ -$
EXPENDITURES: 1,306,871 1,257,228 -
REVENUES OVER (UNDER)
EXPENDITURES (1) - -
BEGINNING FUND BALANCE 84,634 84,633 84,633
ENDING FUND BALANCE 84,633$ 84,633$ 84,633$
GRANTS
REVENUES: 3,881,778 1,966,101$ -$
EXPENDITURES: 3,912,075 2,079,775 -
REVENUES OVER (UNDER)
EXPENDITURES (30,297) (113,674) -
BEGINNING FUND BALANCE 1,028,873 998,576 884,902
ENDING FUND BALANCE 998,576$ 884,902$ 884,902$
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2014 2015 2016
SPECIAL REVENUE FUND
S
OPERATING BUDGET
2014 - 2016
CDBG/HIPP/NHSP
REVENUES: 2,864,317$ 4,608,173$ -$
EXPENDITURES: 3,022,191 4,121,023 -
REVENUES OVER (UNDER)
EXPENDITURES (157,874) 487,150 -
BEGINNING FUND BALANCE 1,733,322 1,575,448 2,062,598
ENDING FUND BALANCE 1,575,44
8
$ 2,062,59
8
$ 2,062,59
8
$
TOTAL BEGINNING FUND BALANCE 11,352,31
2
$ 14,623,44
8
$ 16,226,75
9
$
TOTAL REVENUES 33,641,416 32,977,993 20,557,426
TOTAL EXPENDITURES 30,370,281 31,374,68
2
20,557,42
6
TOTAL ENDING FUND BALANCE 14,623,44
8
$ 16,226,75
9
$ 16,226,75
9
$
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ADOPTED
ACTUAL AMENDED BUDGET
2014 2015 2016
1998 CAPITAL IMPROVEMENTS
REVENUES: 5,123$ 2,675$ -$
EXPENDITURES: 75,632 156,623 -
REVENUES OVER (UNDER)
EXPENDITURES (70,510) (153,948) -
BEGINNING FUND BALANCE 384,578 314,068 160,119
ENDING FUND BALANCE 314,068$ 160,119$ 160,119$
2009A PARKS AND RECREATIO
N
REVENUES: 30$ -$ -$
EXPENDITURES: 478,207 1,457
REVENUES OVER (UNDER)
EXPENDITURES (478,177) (1,457) -
BEGINNING FUND BALANCE 479,634 1,457 -
ENDING FUND BALANCE 1,457$ -$ -$
SHORT TERM FINANCING
REVENUES: 1,538$ 1,540,320$ -$
EXPENDITURES: 96,267 1,420,278 -
REVENUES OVER (UNDER)
EXPENDITURES (94,729) 120,042 -
BEGINNING FUND BALANCE 121,975 27,246 147,287
ENDING FUND BALANCE 27,246$ 147,287$ 147,287$
CAPITAL FUND
S
OPERATING BUDGET
2014 - 2016
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ADOPTED
ACTUAL AMENDED BUDGET
2014 2015 2016
CAPITAL FUND
S
OPERATING BUDGET
2014 - 2016
2004 CAPITAL IMPROVEMENTS
REVENUES: 97$ 71$ -$
EXPENDITURES: - 1,019 -
REVENUES OVER (UNDER)
EXPENDITURES 97 (948) -
BEGINNING FUND BALANCE 6,689 6,786 5,838
ENDING FUND BALANCE 6,786$ 5,838$ 5,838$
2008 & 2009 LIBRARY IMPROVEMENT BOND
REVENUES: -$ -$ -$
EXPENDITURES: - 201 -
REVENUES OVER (UNDER)
EXPENDITURES - (201) -
BEGINNING FUND BALANCE 201 201 -
ENDING FUND BALANCE 201$ -$ -$
2012 LIBRARY IMPROVEMENT BOND
REVENUES: 19,637$ 2,364$ -$
EXPENDITURES: 6,500,416 2,477,794 -
REVENUES OVER (UNDER)
EXPENDITURES (6,480,779) (2,475,430) -
BEGINNING FUND BALANCE 11,677,751 5,196,972 2,721,542
ENDING FUND BALANCE 5,196,972$ 2,721,542$ 2,721,542$
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2014 2015 2016
CAPITAL FUND
S
OPERATING BUDGET
2014 - 2016
2015 LIBRARY IMPROVEMENT BOND
REVENUES: -$ 19,416,890$ -$
EXPENDITURES: - 1,063,565 -
REVENUES OVER (UNDER)
EXPENDITURES - 18,353,324 -
BEGINNING FUND BALANCE - - 18,353,324
ENDING FUND BALANCE -$ 18,353,324$ 18,353,324$
TIF #1 2014 CAPITAL IMPROVEMENT BOND
REVENUES: 2,615,074$ 8$ -$
EXPENDITURES: 2,403,545 211,535 -
REVENUES OVER (UNDER)
EXPENDITURES 211,529 (211,527) -
BEGINNING FUND BALANCE - 211,529 2
ENDING FUND BALANCE 211,529$ 2$ 2$
2012-2021 CAPITAL IMPROVEMENTS FUND (3/8 CENT SALES TAX
)
REVENUES: 24,119,764$ 23,136,539$
EXPENDITURES: 26,212,934 20,499,165 -
REVENUES OVER (UNDER)
EXPENDITURES (2,093,170) 2,637,375 -
BEGINNING FUND BALANCE 30,053,840 27,960,670 30,598,045
ENDING FUND BALANCE 27,960,670$ 30,598,045 30,598,045$
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2014 2015 2016
CAPITAL FUND
S
OPERATING BUDGET
2014 - 2016
2013 CAPITAL IMPROVEMENT FUND (STREETS AND DRAINAGE
)
REVENUES: 196,510$ 30,320$
EXPENDITURES: 9,986,952 11,344,638 -
REVENUES OVER (UNDER)
EXPENDITURES (9,790,442) (11,314,318) -
BEGINNING FUND BALANCE 56,320,727 46,530,285 35,215,968
ENDING FUND BALANCE 46,530,285$ 35,215,968$ 35,215,968$
TOTAL CAPITAL BEGINNING BALANC
E
99,045,396$ 80,249,214$ 87,202,126$
TOTAL REVENUES 26,957,773 44,129,188 -
TOTAL EXPENDITURE
S
45,753,956 37,176,276 -
TOTAL CAPITAL ENDING FUND BALANC
E
80,249,214$ 87,202,126$ 87,202,126$
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2014 2015 2016
V
EHICLE STORAGE FACILITY
REVENUES: 1,376,663$ 1,382,410$ 1,370,305$
EXPENDITURES: 1,332,818 1,359,144 1,359,792
REVENUES OVER (UNDER)
EXPENDITURES 43,846 23,266 10,513
BEGINNING NET POSITION (685,450) (641,604) (618,338)
ENDING NET POSITION (641,604
)
$ (618,338
)
$ (607,825
)
$
WASTE DISPOSAL
REVENUES: 17,715,969$ 17,577,000$ 17,941,300$
EXPENDITURES: 15,419,241 17,127,479 16,928,866
REVENUES OVER (UNDER)
NET INCOME (LOSS) 2,296,728 449,521 1,012,434
BEGINNING NET POSITION 18,779,941 21,076,669 21,526,190
ENDING NET POSITION 21,076,66
9
$ 21,526,19
0
$ 22,538,62
4
$
PARKING GARAGE
S
REVENUES: 2,157,648$ 2,196,750$ 2,570,250$
EXPENDITURES: 2,178,024 2,196,750 2,251,986
REVENUES OVER (UNDER)
NET INCOME (LOSS) (20,376) - 318,264
BEGINNING NET POSITION 469,502 449,126 449,126
ENDING NET POSITION 449,126$ 449,126$ 767,390$
ENTERPRISE FUNDS
OPERATING BUDGET
2014 - 2016
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2014 2015 2016
ENTERPRISE FUNDS
OPERATING BUDGET
2014 - 2016
TOTAL ENTERPRISE BEGINNING NET POSITION 18,563,99
4
$ 20,884,19
2
$ 21,356,97
9
$
TOTAL REVENUES 21,250,281 21,156,16
0
21,881,85
5
TOTAL EXPENDITURES 18,930,08
3
20,683,37
3
20,540,64
4
TOTAL ENTERPRISE ENDING NET POSITION 20,884,19
2
$ 21,356,97
9
$ 22,698,19
0
$
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2014 2015 2016
FLEET INTERNAL SERVICE FUND
REVENUES: 14,192,443$ 13,345,076$ 12,714,282$
EXPENDITURES: 12,688,818 13,447,467 12,714,282
REVENUES OVER (UNDER)
EXPENDITURES 1,503,625 (102,391) -
BEGINNING NET POSITION 2,603,208 4,106,833 4,004,442
ENDING NET POSITION 4,106,833$ 4,004,442$ 4,004,442$
FLEET INTERNAL SERVICE FUND
OPERATING BUDGET
2014 - 2016
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2014 2015 2016
+
FIRE PENSION & RELIEF FUND
ADDITIONS: 8,529,477$ 3,311,844$ -$
DEDUCTIONS: 11,419,280 11,520,855 -
NET INCREASE (DECREASE) (2,889,802) (8,209,011) -
NET POSITION HELD IN TRUST, BEGINNING 73,667,549 70,777,747 62,568,736
NET POSITION HELD IN TRUST, ENDING 70,777,747 62,568,736$ 62,568,736$
NON-UNIFORM DEFINED BENEFIT FUN
D
ADDITIONS: 2,310,897$ 1,387,698$ -$
DEDUCTIONS: 1,952,792 1,843,669 -
NET INCREASE (DECREASE) 358,105 (455,971) -
NET POSITION HELD IN TRUST, BEGINNING 11,853,955 12,212,060 11,756,089
NET POSITION HELD IN TRUST, ENDING 12,212,060 11,756,089$ 11,756,089$
NON-UNIFORM DEFINED CONTRIBUTION
ADDITIONS: (2,475,931)$ 162,512$ -$
DEDUCTIONS: 19,635,588 3,273,244 -
NET INCREASE (DECREASE) (22,111,519) (3,110,732) -
NET POSITION HELD IN TRUST, BEGINNING 43,683,168 21,571,649 18,460,917
NET POSITION HELD IN TRUST, ENDING 21,571,649$ 18,460,917$ 18,460,917$
FIDUCIARY FUND
S
OPERATING BUDGET
2014 - 2016
The City implemented a new defined benefit plan for non-uniform employees in 2014. Participants were
allowed to utilize funds from the defined contribution plan to purchase years of service in the new defined
benefit plan.
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2014 2015 2016
FIDUCIARY FUND
S
OPERATING BUDGET
2014 - 2016
2014 NON-UNIFORM DEFINED BENEFIT FUN
D
ADDITIONS: 31,103,085$ 5,248,885$ -$
DEDUCTIONS: 294,158 812,552 -
NET INCREASE (DECREASE) 30,808,927 4,436,332 -
NET POSITION HELD IN TRUST, BEGINNING - 30,808,927 35,245,259
NET POSITION HELD IN TRUST, ENDING 30,808,927$ 35,245,259$ 35,245,259$
401 (A) PENSION FUND
ADDITIONS: 1,059,145$ 539,903$ -$
DEDUCTIONS: 3,566,368 1,086,925 -
NET INCREASE (DECREASE) (2,507,223) (547,022) -
NET POSITION HELD IN TRUST, BEGINNING 10,539,889 8,032,666 7,485,644
NET POSITION HELD IN TRUST, ENDING 8,032,666$ 7,485,644$ 7,485,644$
HEALTH MANAGEMENT TRUST FUN
D
ADDITIONS: 313,818$ 418,220$ -$
DEDUCTIONS: 21,091 26,933 -
NET INCREASE (DECREASE) 292,728 391,288 -
NET POSITION HELD IN TRUST, BEGINNING 2,096,713 2,389,440 2,780,728
NET POSITION HELD IN TRUST, ENDING 2,389,440$ 2,780,728$ 2,780,728$
TOTAL NET POSITION BEGINNING 141,841,274$ 145,792,489$ 138,297,373$
TOTAL ADDITIONS 40,840,491 11,069,061 -
TOTAL DEDUCTIONS 36,889,277 18,564,177 -
TOTAL NET POSITION ENDING 145,792,489$ 138,297,373$ 138,297,373$
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2014 2015 2016
2002 CIP JUNIOR LIEN BOND
S
REVENUE: 319,956$ 324,133$ -$
EXPENDITURES: 319,755 323,918 -
NET INCREASE (DECREASE) 201 215 -
BEGINNING FUND BALANCE 18,089 18,290 18,506
ENDING FUND BALANCE 18,290$ 18,506$ 18,506$
2007 CAPITAL IMP. REVENUE REFUNDING BON
D
REVENUE: 1,447,657$ 1,445,863$ -$
EXPENDITURES: 1,441,088 1,439,125 -
NET INCREASE (DECREASE) 6,569 6,738 -
BEGINNING FUND BALANCE 19,736 26,305 33,043
ENDING FUND BALANCE 26,305$ 33,043$ 33,043$
2008 LIBRARY IMPROVEMENT BON
D
REVENUE: 3,745,595$ 19,167,516$ -$
EXPENDITURES: 3,735,180 22,953,565 -
NET INCREASE (DECREASE) 10,415 (3,786,050) -
BEGINNING FUND BALANCE 3,876,002 3,886,417 100,367
ENDING FUND BALANCE 3,886,41
7
$ 100,367$ 100,367$
DEBT SERVICE FUNDS
OPERATING BUDGET
2014 - 2016
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2014 2015 2016
DEBT SERVICE FUNDS
OPERATING BUDGET
2014 - 2016
2009 PARKS & REC CAPITAL IMPROVEMENT BON
D
REVENUE: 1,363,122$ 1,364,938$ -$
EXPENDITURES: 1,306,911 1,304,985 -
NET INCREASE (DECREASE) 56,211 59,953 -
BEGINNING FUND BALANCE 2,121,020 2,177,231 2,237,184
ENDING FUND BALANCE 2,177,231$ 2,237,18
4
$ 2,237,18
4
$
2012 LIBRARY IMPROVEMENT BOND
S
REVENUE: 3,418,724$ 3,517,391$ -$
EXPENDITURES: 3,441,205 3,306,408 -
NET INCREASE (DECREASE) (22,481) 210,984 -
BEGINNING FUND BALANCE 3,544,612 3,522,131 3,733,115
ENDING FUND BALANCE 3,522,131$ 3,733,11
5
$ 3,733,11
5
$
2015 LIBRARY IMPROVEMENT BOND
S
REVENUE: -$ 106,431$ -$
EXPENDITURES: -
NET INCREASE (DECREASE) - 106,431 -
BEGINNING FUND BALANCE 106,431
ENDING FUND BALANCE -$ 106,431$ 106,431$
Return to Table of Contents
ADOPTED
ACTUAL AMENDED BUDGET
2014 2015 2016
DEBT SERVICE FUNDS
OPERATING BUDGET
2014 - 2016
TIF #1 2014 CAPITAL IMPROVEMEN
T
REVENUE: 536,050$ 10,178$ -$
EXPENDITURES: 61,453 158,513 -
NET INCREASE (DECREASE) 474,598 (148,334) -
BEGINNING FUND BALANCE - 474,598 326,264
ENDING FUND BALANCE 474,598$ 326,264$ 326,264$
2013 CAPITAL IMPROVEMENT BOND
S
REVENUE: 11,249,845$ 11,621,008$ -$
EXPENDITURES: 10,561,230 11,226,736 -
NET INCREASE (DECREASE) 688,615 394,272 -
BEGINNING FUND BALANCE 10,587,680 11,276,295 11,670,567
ENDING FUND BALANCE 11,276,29
5
$ 11,670,56
7
$ 11,670,56
7
$
TOTAL BEGINNING FUND BALANC
E
20,167,14
0
$ 21,381,26
7
$ 18,225,47
6
$
TOTAL REVENUE
S
22,080,94
8
37,557,45
7
-
TOTAL EXPENDITURE
S
20,866,821 40,713,24
9
-
TOTAL ENDING FUND BALANC
E
21,381,26
7
$ 18,225,47
6
$ 18,225,47
6
$
Return to Table of Contents
City of Little Rock, Arkansas 2016 Operating Budget
2016 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 2016 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 2016 General Fund budget is $1,000,000 or approximately
0.5% of estimated revenue, including transfers in.
Per the City’s financial policy, the goal was to set aside $10,000,000 or 10% of
General Fund revenues, whichever is greater, into a restricted reserve fund on or
before December 31, 2005. However, due to economic conditions in the past
several years, the City has not met this goal. The restricted reserve is currently
$9,418,000. Contingency appropriations, which are not utilized during the fiscal
year to meet unforeseen needs, will be added to the restricted reserve until the
desired level is achieved. While, the City has not been able to increase the
reserve to the desired level, the City has not drawn from the restricted reserve to
balance the budget. The City anticipates an addition to the restricted reserve in
2016 based on 2015 financial results. The City Board of Directors will evaluate
funds available following completion of the 2015 annual audit to determine the
amount of the addition.
Citizen demand for services has outpaced revenue growth in the last few years.
The citizens of Little Rock approved a one (1)-cent sales tax on September 13,
2011 to allow the City to fill critical positions that have remained vacant for many
years and to provide the City the opportunity to move forward with much needed
programs and capital projects. All of the services and projects funded by the tax
increase support the City goals and objectives centered on public safety,
economic development, basic City services, infrastructure, and quality of life.
The tax increase, which went into effect January 1, 2012, includes a permanent
5/8-cent operations tax and a 3/8-cent ten (10)-year capital tax, that will provide
additional Police Officers, more Code Enforcement Officers, new Fire and Police
facilities and a new emergency communications system. The capital projects
supported by the new 3/8-cent tax are highlighted in the Capital Improvements
section of the Budget Document. The ongoing operating expenses associated
Return to Table of Contents
City of Little Rock, Arkansas 2016 Operating Budget
with the capital projects are supported by the 5/8-cent portion of the new sales
tax. These expenses are phased into the five year forecast based on the
anticipated completion schedule of the capital projects. Consistent with the first
“must do” goal of the Mayor and Board of Directors, the City plans to complete
the majority of the public safety projects funded by the 3/8-cent ten (10)-year
capital tax in the first five (5) years. In addition, emphasis is placed on
completing infrastructure projects in each of the City’s seven (7) Wards, utilizing
citizen input through community meetings to determine projects that will be
completed in three (3)-year cycles.
The City has taken steps to plan for the future with the five-year forecast based
on the estimated revenues and operating expenditures for 2016 – 2020. The
forecast for 2016 – 2020 is a planning tool used for the projections. The Mayor
and Board of Directors have only approved the 2016 budget. However, the
Board is committed to providing financial stability in order to maintain critical
programs.
Return to Table of Contents
FY16 FY17 FY18 FY19 FY20
Adopted
Projected Projected Projected Projected
General Fund
Beginning Fund Balance $20,460,635 $21,460,635 $22,490,635 $23,530,635 $24,590,635
Plus: Est. Revenue 201,644,229 205,493,036 206,559,982 210,006,367 213,958,901
Less: Est. Expenses
General Administrative 29,977,808 29,534,954 26,202,948 25,140,407 24,471,292
Board of Directors 342,818 349,674 356,668 363,801 372,896
Community Programs 427,559 436,110 444,832 453,729 465,072
City Attorney 1,939,007 1,977,787 2,017,343 2,057,690 2,109,132
District Court - First Division 1,410,338 1,438,545 1,467,316 1,496,662 1,534,079
District Court - Second Division 1,365,334 1,392,641 1,420,493 1,448,903 1,485,126
District Court - Third Division 627,195 639,739 652,534 665,584 682,224
Finance 3,407,407 3,475,555 3,545,066 3,615,968 3,706,367
Human Resources 1,810,554 1,846,765 1,883,700 1,921,374 1,969,409
Information Technology 4,843,151 4,940,014 5,038,814 5,139,591 5,268,080
Planning and Development 2,566,299 2,617,625 2,669,977 2,723,377 2,791,461
Housing & Neighborhood Programs 5,866,198 5,993,522 6,113,392 6,235,660 6,391,552
Public Works 1,191,100 1,214,922 1,239,220 1,264,005 1,295,605
Parks & Recreation*** 10,207,910 10,661,795 10,875,031 11,092,532 11,369,845
River Market 1,174,745 1,198,240 1,222,205 1,246,649 1,277,815
Golf 2,288,313 2,334,079 2,380,761 2,428,376 2,489,085
Jim Dailey Fitness & Aquatics 909,546 927,737 946,292 965,217 989,348
Zoo 6,810,041 6,946,242 7,085,167 7,226,870 7,407,542
Fire ** 47,365,844 48,549,990 50,280,780 51,537,799 52,826,244
Police 70,548,138 72,200,877 73,644,894 75,648,174 77,501,547
Vacancy Reductions (6,000,000) (6,000,000) (6,000,000) (6,000,000) (6,000,000)
Transfers Out (including contingency) 12,564,924 12,816,222 13,072,547 13,333,998 13,555,179
201,644,229 205,493,036 206,559,982 210,006,367 213,958,901
Anticipated contingency/reserve 1,000,000 1,030,000 1,040,000 1,060,000 1,070,000
Ending Fund Balance * $21,460,635 $22,490,635 $23,530,635 $24,590,635 $25,660,635
Reserve Requirement
(10% of Revenues) $20,164,423 $20,549,304 $20,655,998 $21,000,637 $21,395,890
* 2016 Ending Fund Balance includes an estimated restricted reserve of $10,500,000.
** Includes the addition of 12 fire fighters in 2017 with the opening of the Southwest Little Rock Fire Station which is
scheduled for completion in 2017.
***Includes the addition of the West Central Community Center personnel and operations for a full year in 2017.
Street Fund
Beginning Balance $8,913,184 $8,913,184 $8,913,184 $8,913,184 $8,913,184
Plus: Est. Revenue 20,557,426 20,968,575 21,387,946 21,815,705 22,361,098
Less: Est. Expenses 20,557,426 20,968,575 21,387,946 21,815,705 22,361,098
Ending Balance $8,913,184 $8,913,184 $8,913,184 $8,913,184 $8,913,184
Reserve Requirement
(10% of revenue) $2,055,743 $2,096,857 $2,138,795 $2,181,570 $2,236,110
2016 - 2020 FORECAST
CITY OF LITTLE ROC
K
Return to Table of Contents
FY16 FY17 FY18 FY19 FY20
Adopted
Projected Projected Projected Projected
2016 - 2020 FORECAST
CITY OF LITTLE ROC
K
Fleet Fund
Beginning Net Position $4,004,442 $4,004,442 $4,004,442 $4,004,442 $4,004,442
Plus: Est. Revenue 12,714,282 12,968,568 13,227,939 13,492,498 13,829,810
Less: Est. Expenses 12,714,282 12,968,568 13,227,939 13,492,498 13,829,810
Ending Net Position $4,004,442 $4,004,442 $4,004,442 $4,004,442 $4,004,442
Reserve Requirement
(10% of revenues) $1,271,428 $1,296,857 $1,322,794 $1,349,250 $1,382,981
Vehicle Storage Facility
Beginning Net Position ($618,338) ($607,825) ($597,102) ($586,164) ($575,007)
Plus: Est. Revenue 1,370,305 1,397,711 1,425,665 1,454,179 1,490,533
Less: Est. Expenses 1,359,792 1,386,988 1,414,728 1,443,022 1,479,098
Ending Net Position ($607,825) ($597,102) ($586,164) ($575,007) ($563,572)
Reserve Requirement
(10% of revenues) $137,031 $139,771 $142,567 $145,418 $149,053
Waste Disposal Fund
Beginning Net Position $21,526,190 $22,538,624 $23,123,582 $23,389,507 $23,660,751
Plus: Est. Revenue 17,941,300 18,022,073 18,097,581 18,459,533 18,828,723
Less: Est. Expenses 16,928,866 17,437,115 17,831,656 18,188,289 18,552,055
Ending Net Position $22,538,624 $23,123,582 $23,389,507 $23,660,751 $23,937,419
Reserve Requirement
(15% of revenues) $2,691,195 $2,703,311 $2,714,637 $2,768,930 $2,824,308
Parking Garages
Beginning Net Position $449,126 $767,390 $767,390 $767,390 $767,390
Plus: Est. Revenue 2,570,250 2,621,655 2,674,088 2,727,570 2,782,121
Less: Est. Expenses 2,251,986 2,621,655 2,674,088 2,727,570 2,782,121
Ending Net Position $767,390 $767,390 $767,390 $767,390 $767,390
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.
Return to Table of Contents
Revenues
CITY OF LITTLE ROCK
2016 BUDGET SUMMARY
ALL FUNDS RESOURCES
$256,797,792
Street
Fund
8.01%
Fleet
Services
4.95%
Waste
Disposal
6.99%
General
Fund
78.52%
Vehicle Storage
Facility
.53%
Parking
Garages
1.00%
Return to Table of Contents
2014 2015 2015 2016 15/16 %
REVENUES: ACTUAL ADOPTED AMENDED ADOPTED DIFF CHANGE
Property Taxes * $26,685,437 $27,276,348 $27,276,348 $28,249,736 $973,388 3.57%
Sales Tax 96,445,300 96,684,815 99,389,815 101,575,420 2,185,605 2.20%
Business Licenses 6,369,630 6,451,900 6,451,900 6,413,500 (38,400) -0.60%
Mixed Drinks 2,197,458 2,285,600 2,285,600 2,313,000 27,400 1.20%
Building, Related Permits 2,514,811 2,289,050 2,047,050 2,060,100 13,050 0.64%
Intergovernmental* 7,002,433 7,002,433 7,686,788 7,686,800 12 0.00%
Park Revenue 446,045 429,300 402,300 421,800 19,500 4.85%
River Market 535,139 607,000 507,000 600,077 93,077 18.36%
Golf 920,545 977,297 800,147 805,900 5,753 0.72%
Jim Dailey Fitness and Aquati
c
Center
316,806 428,844 378,844 346,600 (32,244) -8.51%
Zoo 3,353,482 3,763,409 2,963,409 2,983,600 20,191 0.68%
Airport Reimbursement 3,152,211 3,183,700 3,159,100 3,222,200 63,100 2.00%
Salary Reimbursement 911 553,322 750,000 475,000 500,000 25,000 5.26%
Fines and Fees 2,984,703 3,161,210 2,769,844 2,812,371 42,527 1.54%
Utility Franchises 28,141,320 28,744,707 29,744,707 29,686,027 (58,680) -0.20%
Police Pension 427,902 - 320,000 330,000 10,000 n/a
Investment Income 345,454 200,000 200,000 225,000 25,000 12.50%
All Other 2,243,987 1,959,926 2,059,626 2,060,128 502 0.02%
Transfers In 7,039,103 7,994,672 7,994,672 9,351,970 1,357,298 16.98%
Carryover 550,000 550,000 (550,000) n/a
Total General Fund 191,675,088 194,740,211 197,462,150 201,644,229 4,182,079 2.12%
Other Budgeted Funds
Street 20,232,609 20,050,226 20,050,226 20,557,426 507,200 2.53%
Fleet Services 14,192,443 13,345,076 13,345,076 12,714,282 (630,794) -4.73%
Vehicle Storage Facility 1,376,663 1,382,410 1,382,410 1,370,305 (12,105) -0.88%
Waste Disposal 17,715,969 17,577,000 17,577,000 17,941,300 364,300 2.07%
Parking Garages 2,157,648 2,196,750 2,196,750 2,570,250 373,500 17.00%
Total Other Budgeted Funds 55,675,332 54,551,462 54,551,462 55,153,563 602,101 1.10%
Total All Budgeted Funds $247,350,421 $249,291,673 $252,013,612 $256,797,792 $4,784,180 1.92%
* Includes Property Tax and Pension Turnback funds associated with the Police and Fire Pension.
CITY OF LITTLE ROCK
2016 OPERATING REVENUES
Return to Table of Contents
$0
$30,000,000
$60,000,000
$90,000,000
$120,000,000
2014 2015 2016
Sales Taxes Utility Franchises
All Other Property Taxes
General Government
Summary of Revenues
2014-2016
Return to Table of Contents
2014 2015 2016
ACTUAL ADOPTED ADOPTED
GENERAL FUND
PROPERTY TAX
Property Taxes 17,620,851$ 18,270,300$ 18,863,700$
Pension Property Taxes 7,489,299 7,484,100 7,782,200
Homestead Taxes 1,071,877 1,125,900 1,124,000
Property Taxes LR Port Authority 131,045 20,000 58,700
Act 9 Industry Payment 372,364 376,048 421,136
Total Property Taxes 26,685,437 27,276,348 28,249,736
SALES TAX
County Sales & Use Tax 39,929,600 40,045,900 42,291,520
City Sales Tax 53,295,912 53,896,600 56,279,000
State Tax Turnback 3,219,788 2,742,315 3,004,900
Total Sales Taxes 96,445,300 96,684,815 101,575,420
BUSINESS LICENSES
General Business Licenses 6,369,630 6,451,900 6,413,500
Mixed Drinks Licenses 2,197,458 2,285,600 2,313,000
Total Business Licenses 8,567,088 8,737,500 8,726,500
PERMITS
Building & Excavation Permits 1,491,444 1,287,500 1,081,800
Electrical Permits 351,278 318,300 329,400
Plumbing Permits 299,542 317,250 295,400
HVAC Permits 294,134 267,800 284,900
Wrecker Franchise 73,180 96,000 59,800
Burn Permits 5,233 2,200 8,800
Total Permits 2,514,811 2,289,050 2,060,100
INTERGOVERNMENTAL
Insurance Turnback 3,701,684 3,701,684 4,514,600
Police and Fire Pension Insurance Turnback 2,455,699 2,455,699 2,259,400
Police Supplement 168,600 168,600 173,400
Future Supplement (ACT 1373) 676,450 676,450 739,400
Total Intergovernmental 7,002,433 7,002,433 7,686,800
POLICE SERVICES
Police Report 393,831 394,000 373,300
False Alarm 61,090 100,000 90,000
Airport - Security Guards 1,876,333 1,926,500 1,918,400
Total Police Services 2,331,254 2,420,500 2,381,700
FIRE SERVICES
Airport-Fire Protection 1,275,878 1,257,200
1,303,800
Total Fire Services
1,275,878 1,257,200 1,303,800
PARK REVENUE
SWLR Community Complex 98,625 95,000 97,300
Athletics Fees 107,894 108,400 73,800
Pavilion Rental 54,292 56,400 51,000
Community Center & Miscellaneous Fees 139,615 119,700 149,800
Admissions Revenue 32,250 35,000 30,000
Miscellaneous Revenue 13,369 14,800 19,900
Total Park Revenue 446,045 429,300 421,800
CITY OF LITTLE ROCK
2016 OPERATING REVENUE
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2014 2015 2016
ACTUAL ADOPTED ADOPTED
CITY OF LITTLE ROCK
2016 OPERATING REVENUE
RIVER MARKET
Admissions Revenue 204,412 220,000 210,077
Space Rental 330,727 387,000 390,000
Total River Market Revenue 535,139 607,000 600,077
GOLF
Concessions Revenue 123,185 138,100 113,600
Green Fees 857,291 887,900 767,100
Equipment Rental 509,607 512,200 479,300
Merchandise Sales 81,149 95,000 88,000
Miscellaneous Revenue 10,113 4,900 18,700
Parks Contra Revenue (Debt Service) (660,800) (660,803) (660,800)
Total Golf Revenue 920,545 977,297 805,900
JIM DAILEY FITNESS & AQUATIC CENTER
Annual Membership 34,806 50,000 30,000
Monthly Membership 121,591 189,000 144,300
Daily Fees 65,030 82,100 73,100
Corporate Fees 190,443 190,400 205,000
Special Fees 5,146 4,800 5,800
Instructional Fees and Special Events 52,556 52,600 42,300
Miscellaneous 1,435 14,100 300
Parks Contra Revenue (Debt Svc) (154,200) (154,156) (154,200)
Total Jim Dailey Fitness & Aquatic Center 316,806 428,844 346,600
ZOO
Membership 495,215 510,000 474,000
Zoo Admissions 1,925,941 2,289,600 1,702,700
Concessions 557,870 564,600 470,000
Token Sales 180,732 213,200 198,200
Education 35,116 31,000 43,000
Special Events 209,082 195,700 205,000
Zoo Rentals 56,705 58,500 54,800
Merchandise Sales 358,882 368,200 306,000
Miscellaneous 27,040 25,700 23,000
Parks Contra Revenue (Debt Svc) (493,100) (493,091) (493,100)
Total Zoo Revenue 3,353,482 3,763,409 2,983,600
MISCELLANEOUS CHARGES FOR SERVICES
Crossing Guards-LRSD Reimbursement 708,537 699,100 710,800
911 Services Reimbursement 553,322 750,000 500,000
Total Miscellaneous Services 1,261,859
1,449,100
1,210,800
FINES
General Fines 1,816,303
Fines - Traffic 1,746,291 1,870,000
Fines - Criminal - Other 310,522 334,400
Probation Assessments 58,061 54,000
Additional Court Cost 19,458 19,500
Theft Diversion Class -
Fines - Parking 283,982 300,000 299,000
Fines - Child Passenger Protection 2,587 4,300
Fines - Environmental 18,376 16,000
Fines - Animal 16,715 20,000
Fines - Other 4,150
3,800 4,800
Drunk-O-Meter 3,942 4,000 700
Total Fines 2,464,083 2,626,000 2,120,803
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2014 2015 2016
ACTUAL ADOPTED ADOPTED
CITY OF LITTLE ROCK
2016 OPERATING REVENUE
FEES
Uniform Filing Fees/Court Costs 165,600
Rezoning Fees 53,974 50,000 61,400
Act 9 Admin Fees 4,510 4,510 4,600
Incident Report Fees 1,500 - 1,200
Civil Court Fees 72,131 74,000
Booking & Admin Fee - Pulaski County Jail - 2,600
Warrant Service Police 38,800
Writ Garnishment Fees 1,700
Community Service Fees 21,455 25,000 60,500
Miscellaneous Service Fees 82,218 101,700 70,968
Mobile Home Registration Fees 29,300 30,000 34,200
Animal Services 255,532 250,000 250,000
Total Fees 520,620 535,210 691,568
UTILITY FRANCHISE
Entergy 12,699,659 13,194,900 14,632,600
S W Bell 732,206 683,200 600,000
Local Landline Franchise Fees 229,921 240,700 209,600
Long Dist. Franchise Fees 792,030 730,000 797,500
Centerpoint Energy 3,739,870 3,800,000 3,007,500
Central Ark Water 3,167,049 3,345,300 3,445,000
LR Waste Water 4,975,993 4,992,500 5,192,800
Fiber Optics 1,691,019 1,591,800 1,886,600
Cable TV 1,870,664 1,925,600 1,673,100
Franchise Fee Contra (1,757,093) (1,759,293) (1,758,673)
Total Utility Franchises 28,141,320 28,744,707 29,686,027
POLICE PENSION
Suspended Employee Contributions 96,868
Police 10% Parking 28,825 30,000
LRPD Retirement 211,546 215,000
Income-Police Clearing 81,354 50,000
Pension Miscellaneous 9,309 35,000
427,902 - 330,000
INVESTMENT INCOME
Interest Income 218,352 200,000 225,000
Change in Fair Market Value 127,103
Total Investment Income 345,454 200,000 225,000
RENTS AND ROYALTIES
Tower Lease
267,739 257,196 222,149
Ground Leases 7,127 6,030 6,579
Amusement Park Leases 3,025 3,300 3,600
Total Rents and Royalties 277,891 266,526 232,328
MISCELLANEOUS INCOME
Contributions/Donations 308,867 250,000 250,000
Other Reimbursements 4,236
Insurance Reimbursement 104,464 300
Miscellaneous Revenue 385,070 250,000 403,700
Total Miscellaneous Revenue 802,636 500,300 653,700
Transfers In 7,039,103 7,994,672 9,351,970
Carryover from 2014 550,000
TOTAL GENERAL FUND REVENUE 191,675,088 194,740,211 201,644,229
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2014 2015 2016
ACTUAL ADOPTED ADOPTED
CITY OF LITTLE ROCK
2016 OPERATING REVENUE
STREET FUND
ST Homestead Tax 310,875 319,100 326,800
1/2 County Road Tax 5,109,983 5,170,200 5,473,300
State Gas Tax Turnback 12,824,949 12,672,900 12,792,400
Street Repair Reimbursement 13,615 14,700 18,600
Insurance and Other Reimbursement 313,805 120,000 174,100
Interest and Change in Fair Market Value on Investments 64,416 38,600 57,500
Transfer In 1,594,968 1,714,726 1,714,726
TOTAL STREET FUND 20,232,610 20,050,226 20,557,426
FLEET INTERNAL SERVICE FUND
Fleet Labor 2,493,325 2,845,262 2,959,713
Fuel Fees 3,188,831 3,550,170 2,856,500
Compressed Natural Gas 81,712 168,920 180,400
Miscellaneous Sales 94,534 32,998
Motor Pool 11,292 8,932 12,000
Fleet Parts 3,121,798 3,378,090 3,366,325
Insurance 881,506 766,000 550,000
Fleet Management 920,784 1,153,623 1,264,544
Fleet Sublets 1,707,845 1,441,081 1,524,800
Interest and Change in Fair Market Value on Investments 11,607 - -
Capital Contribution 1,693,493
Gain/(Loss) on Sale of Assets (14,284)
TOTAL FLEET INTERNAL SERVICE FUND 14,192,443 13,345,076 12,714,282
VEHICLE STORAGE FACILITY
Licenses and Permits 18,459 16,300 19,010
Storage Fees 376,880 363,500 348,685
Wrecker Fees 368,354 426,610 426,610
Vehicle Auction Sale 452,129 446,400 446,400
Impound Administration 95,375 100,000 100,000
Vehicle Storage Miscellaneous
65,466 29,600 29,600
TOTAL VEHICLE STORAGE FACILITY 1,376,663 1,382,410 1,370,305
WASTE DISPOSAL ENTERPRISE FUND
Sanitation Fees 16,017,402 16,016,000 16,148,700
Landfill Fees 1,219,818 1,250,000 1,500,000
Methane Gas Revenue 128,888 95,000 50,000
Yard Waste 83,681 75,000 60,000
Compost Sale 63,566 80,000 69,400
Interest and Change in Fair Market Value on Investments 122,249 50,000 83,700
Miscellaneous Revenue 76,062 11,000 29,500
Capital Contribution 140,946
Gain/(Loss) on Sale of Assets (136,643)
TOTAL WASTE DISPOSAL ENTERPRISE FUND 17,715,969 17,577,000 17,941,300
Return to Table of Contents
2014 2015 2016
ACTUAL ADOPTED ADOPTED
CITY OF LITTLE ROCK
2016 OPERATING REVENUE
PARKING GARAGES
Business License - Auto/Truck 273,596 273,600 292,400
Street Repair Reimbursement 201,605 244,500 245,300
Parking Meters 385,380 394,400 445,200
Surface Lot Parking 93,117 93,000 95,000
Parking Deck Monthly 878,518 881,000 996,000
Parking Deck Daily 222,249 253,800 491,650
Parking Peabody 90,419 48,200
Interest and Change in Fair Market Value on Investments 12,765 7,800 4,700
Miscellaneous Income - 450
TOTAL PARKING GARAGES 2,157,648 2,196,750 2,570,250
GRAND TOTAL ALL FUND
S
247,350,421$ 249,291,67
3
$ 256,797,79
2
$
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City of Little Rock, Arkansas 2016 Operating Budget
REVENUE TRENDS
OVERALL
The City’s General Fund revenues are primarily comprised of sales and use taxes,
property taxes, utility franchise fees, fines and fees and revenues from various
licenses and permits. The largest source of revenue in the City’s General Fund is
sales and use tax, which contributes approximately 50% to the 2016 budget. The
2016 operating budget includes an increase in sales tax of 2.2% over the final
amended 2015 budget and 1.7% over 2015 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 2015 sales tax grew at a rate of 3.56%
over 2014 actuals. Change in monthly sales tax receipts compared to the same
period a year ago fluctuated from a high, with growth of 10% for April revenues to
a low, with a decline of 6.6% for May revenues. While growth continued to be
somewhat volatile from month to month, 2015 sales tax revenues grew in ten (10)
of twelve (12) months in comparison to the same month a year ago. Consumer
and business confidence has increased amid evidence of a decrease in
unemployment and an increase in spending and new investment. Low inflation
and lower consumer energy costs are anticipated to support sustained growth in
the local economy. The moderate increase in sales taxes revenues in 2015 are
partly attributed to a significant increase in retail development in Southwest Little
Rock. The impact of increasing internet sales and rebates of local sales tax on
business, governmental, and non-profit purchases in excess of $2,500 stifle local
tax growth in comparison to that of the State. In addition, state statute restricts the
level of tax information available to municipalities which makes revenue
forecasting very difficult.
The 2016 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. Prior to 2015, this
revenue was reflected as a year-end adjustment and was not included in the
%
REVENUES CHANGE
2012 Operating Revenues 180.2
2013 Operating Revenues 185.5 2.94%
2014 Operating Revenues 184.3 -0.65%
2015 Operating Revenues 194.7 5.64%
2016 Operating Revenues 201.6 3.54%
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City of Little Rock, Arkansas 2016 Operating Budget
annual operating budget. In 2016, the dedicated revenue of approximately $12.3
million is included in the General Fund budget. The projected change in operating
revenues is approximately 3.5% over the original 2015 operating budget and 2.1%
above the final amended 2015 budget.
Property taxes comprise approximately 14% of 2016 General Fund budgeted
revenues. Assessments of real estate and personal property are levied in the
current year and collectible in the following year. Little Rock is in Pulaski County
which completed a real estate reappraisal in 2012. Historically, the reappraisal is
on a three (3) year cycle, however; the Arkansas State Assessment Coordination
Department altered the reappraisal to a five (5) year cycle with the next appraisal
scheduled to occur in 2017. Personal property is reappraised annually by May 31.
The original charge for 2015 property taxes to be collected in 2016 reflects a 1.6%
increase over 2015.
Utility franchise fees comprise approximately 14.7% of 2016 General Fund
budgeted revenues. 2015 utility franchise revenues were 4.14% above 2014.
Overall, 2016 utility franchise fees are projected to be 1.3% higher than 2015
actual revenues but relatively flat from the final amended 2015 budget. The largest
factor in the decline was related to a very mild start to the 2015/2016 winter.
Weather plays a significant role in the majority of the annual franchise fee
revenues. The largest percentage changes experienced in 2015 were associated
with CenterPoint, Entergy, AT&T landline and Long Distance. The trend towards
households with only wireless phones continues to gain in popularity. Although
the rate of decline compared to previous years has slowed, local landline and long
distance franchise fee revenues continue to experience high single digit drops,
respectively. Telecommunication revenues are expected to further decrease as
wireless communication continues to increase market share. The largest dollar
changes experienced in 2015 were associated with Entergy (electric utility),
CenterPoint Energy (gas utility), Comcast, and Central Arkansas Water. Although
the summer of 2015 was warmer than the previous year, Entergy usage increased
only 1.39% with revenues increasing significantly at 12.2% or approximately
$1,553,240 from 2014. A portion of the increase in revenue was associated with
a 3.4% rate increase approved by the Arkansas Public Service Commission on
January 15, 2015. The mild winter of 2014/2015 and a slight decrease in gas rates
resulted in a significant decrease in natural gas franchise fee revenues from 2014
levels. CenterPoint usage levels decreased 11.2% with a corresponding decrease
in revenues of 13.2% or approximately $493,300. Wastewater revenues were flat
with no increase in rates in 2015. Wastewater Utility announced a 4.75% increase
in rates for 2016 and subsequent base rate increases for the next several years
through 2021. A warmer and dryer summer of 2015 increased water consumption.
Central Arkansas Water and the Wastewater utility historically have experienced
significant reductions in water usage due to efficiencies in technology and
conservation efforts also. Of the City’s utility providers, only the Wastewater utility
is anticipated to have a rate increase in 2016. Entergy Arkansas and CenterPoint
Energy have announced that they were requesting rate increases from the
Arkansas Public Safety Commission (PSC) later in 2016, but these requests are
usually modified and reduced by the Commission.
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City of Little Rock, Arkansas 2016 Operating Budget
Licenses and permits comprise approximately 5.4% of 2016 General Fund
revenues. 2015 revenues from licenses and permits were flat compared to 2014
and are expected to decrease 2.5% in 2016, primarily from a reduction in building
and related permits. Business licenses and mixed drink supplemental fees grew
3.2%. Building and related permits were expected to drop to 2013 levels but
performed better because of continued commercial development near the I-30/I-
430 interchange. Building and related permits decreased 11.1% from 2014 but
increased approximately 2.63% from the amended budget. Fines and fee
revenues decreased approximately 11.2% compared to one year ago. The district
courts experienced a major system conversion in February 2015. There were
concerns about the transfer of historical data, which delayed the issuance of tickets
and warrants. Fines and Fees are projected to increase 6.1% from 2015 levels.
Parking fine revenue is expected to increase with five full-time parking technicians.
PROPERTY TAXES
In general, all real and personal property situated in the City is subjected to ad
valorem taxation with some exceptions, such as school property and libraries.
Residents, utilities, and businesses in Little Rock are assessed and levied property
taxes as follows:
Assessed value is an amount equal to twenty (20) percent of market value,
and the levied millage is applied against the assessed value to determine
the tax owed. With the passage of Amendment 79, the appraised value of
residential property is limited to a maximum increase of 5% annually,
regardless of the increase in market value of the property. A non-residential
property or an investment property is limited to an annual increase of 10%.
Any annual increase in the value of utility and carrier real property is limited
to 10% of the assessed value for the previous year.
Tax levies, expressed in terms of millage are passed by local governments
and certified to the County Tax Collector, who bills and collects the tax. One
mill equals $1 in tax per $1,000 in assessed value.
A Little Rock resident living in the Little Rock School District is charged a
millage rate of 70.00.
Taxes are remitted to the City monthly by the Pulaski County Treasurer as
payments are received throughout the year.
The City tax levies the past two (2) years were as follows:
2014 Payable 2015 2015 Payable 2016
General Operation 5.00 5.00
Bond Retirement 3.00 3.00
Library System 5.20 5.10
Police & Firemen’s Pension 2.00 2.00
15.20 15.10
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City of Little Rock, Arkansas 2016 Operating Budget
The General Assembly exercised its homestead exemption authority with the
passage of Act 1598 of 2001 (Amendment 79). A homestead is a property which
is an owner’s principal place of residence. Effective with the assessment year
2000 and thereafter, the amount of real property taxes assessed on the homestead
of each property owner is reduced by $350.
The City recently received notice of the original charge for 2015 property taxes to
be collected in 2016 which reflects an overall increase of 1.6%. The original charge
for the previous year increased 3.43%. The Pulaski County Treasurer’s Office is
experiencing a collection rate of approximately 96%, which includes collection of
delinquent taxes from previous years.
The dedicated one mill property tax levies for the Police and Fire Pension plans
are included in the General Fund budget. The revenue is collected in the General
Fund and is contributed directly to the Police and Fire Pension Funds. Prior to
2013, this “pass-through” revenue was not included in the annual budget, but was
included in actual revenues as a year-end adjustment. The dedicated pension
property tax millage is expected to generate approximately $7,782,200 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 2016 budget anticipates $5.8 million in property tax collections
from this tax.
In addition to the City millage of 15.1 and the County road millage of 2.9, a Little
Rock property owner’s tax assessment for 2015 includes 5.60 mills levied by the
County and 46.40 mills levied for the Little Rock School District. The total millage
for a Little Rock property owner is 70.00 for 2015 property taxes payable in 2016.
The general operations 5.0 mill levy is the maximum rate allowable under state law
for general city operations. Property tax revenues include Act 9 Payments which
are payments in lieu of property taxes paid by certain industrial companies.
Carmeron Valve, Dillards, LM Wind Power Blades, Inc., Novus, Ringwood
Container, Sage V Foods, AR Aerospace, Welspun Pipes, Inc., Jacuzzi and
Windstream are companies which are scheduled to make Act 9 payments in 2016.
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 2016 from
this tax is $42,291,520, which represents a 2.25% increase over the anticipated
2016 year-end results at the time the budget was adopted and a 2.09% increase
over 2015 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
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City of Little Rock, Arkansas 2016 Operating Budget
included in the county sales tax projection are approximately $5,075,000, or 12%
annually. On January 1, 2008, changes to Arkansas’s state and local sales tax
laws were implemented for purposes of compliance with the Streamlined Sales
Tax Agreement. Including Arkansas, the sales tax laws of twenty-four (24) states
have been amended to conform to the agreement.
LOCAL SALES TAX
Prior to 2012, the City of Little Rock levied one of the lowest sales tax rates in the
State of Arkansas at 0.5%. In September 2011, voters approved an overall one
(1) cent sales tax increase which is comprised of a permanent 5/8-cent dedicated
for ongoing operations and a temporary 3/8-cent dedicated to capital projects over
a ten (10) year period. The new tax went into effect on January 1, 2012. The
existing 1/2-cent sales tax generated $24,618,489 in 2015 The new 5/8-cent tax
dedicated to ongoing operations generated an additional $30,773,111 in revenue
in 2015 for a combined $55,391,600 in local sales tax for operations.
The 3/8-cent tax for capital projects generated $18,430,387 in 2015 and is
expected to generate $195.8 million over the ten (10) year period for capital
projects. The capital tax increased 3.26% over 2015 levels. The 3/8-cent tax
revenue is not reflected in General Fund revenues. Instead, it is reported in a
separate capital projects fund.
There is a two-month delay from the time the actual sales tax revenues are
collected by businesses and the time they are received by the City. Sales tax is
remitted by businesses to the State, which disburses this amount to the City, less
a 3% administrative charge. Prior to January 2014, local governments had limited
information regarding sales tax receipts which made forecasting these revenues
very difficult. As a result of concerted efforts by the Municipal League and
sponsoring cities, the Arkansas Department of Finance and Administration now
issues a statistical report which classifies and summarizes tax collection and
adjustment information for businesses, reporting activity for the specific city or
county by NAICS code. Over time, the reports are expected to better assist in
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City of Little Rock, Arkansas 2016 Operating Budget
sales tax forecasting. The report includes components that comprise negative
adjustments, such as refunds, rebates and corrections.
For 2015, the industries with the largest dollar increases in sales taxes were
specialty food stores, restaurants and bars, general merchandise stores and
grocery stores. The largest dollar decreases were associated with direct selling
establishments, natural gas distributions, and non-residential building
construction.
The local sales tax of 1.5% grew at a slightly higher rate of 3.93% than the county’s
sales tax growth rate of 3.74%. The projected revenue for 2016 from the local tax
for the General Fund is approximately $56,279,000 which represents a 2.25%
increase from anticipated 2015 year-end results at the time the budget was
adopted, and 1.60% over actual 2015 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 2016 was reduced from a revised
$15.25 to $15.00 per capita, or a 1.64% decrease. The Arkansas State Legislature
appropriated monies to be disbursed to county and local governments from the
surplus of the Property Tax Relief Fund. Prior to 2014, 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 $205,244. Each legislative
session can increase or decrease the appropriation dependent upon surpluses in
state funds. State turnback funds are expected to generate approximately $3
million dollars in General Fund revenue in 2016.
Month 2014 2015 2014 2015 2014 2015
January $9,666,249 $9,159,751 $594,574 $1,078,254 $3,671,283 * $3,951,881
February 8,610,433 9,140,973 908,314 865,620 1,889,235 2,055,766
March 8,864,931 9,768,891 838,838 440,228 1,889,914 2,053,376
April 9,090,103 8,905,034 1,005,050 1,199,955 1,889,914 2,149,095
May 9,684,676 9,840,348 1,108,430 479,664 1,889,593 2,056,092
June 9,380,094 9,870,152 1,151,947 515,640 1,889,914 2,056,559
July 10,386,237 9,996,770 1,049,503 1,242,957 7,436,193 ** 5,602,259 ***
August 9,310,017 9,465,188 1,153,167 482,196 2,056,571
1,815,712
September 9,483,760 1
0,122,119 1,084,170 495,609 2,052,581 2,032,276
October 9,763,094 9,866,819 1,042,826 521,754 2,056,449 2,019,156
November 9,282,963 9,604,610 923,264 527,387 2,056,540 2,031,292
December 9,054,076 9,198,070 755,209 471,203 2,054,946 2,032,218
Total $112,576,632 $114,938,724 $11,615,292 $8,320,466 $30,434,803 $29,855,681
* Includes $2 million appropriation from the Property Tax Relief Fund
** Includes $3,516,800.29 supplemental and $2 million appropriation from Category B of Budget Stabilization for
July 2014
***Includes $3,516,801.52 supplemental for July 2015
State Turnback
State Turnback Year-to-Date 2015 with 2014 Comparison (shaded blue)
Street Severance General
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City of Little Rock, Arkansas 2016 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 recently increased to a target
range of between 0.25% and 0.50%. Prior to December 2015, the rate has
remained at historically low levels since January 1, 2009. The Discount Rate
currently is 1%. Investment income for the General Fund increased only slightly
in 2015. Investment income before year-end fair market value adjustments was
approximately $222,260.
Securities held are short in duration, backed by the U.S. government and are
among the safest securities in the world. Short term rates remained steady
throughout 2015 but spiked in September and reminded slightly higher at the end
of 2015. Steady interest rates coupled with steady fund balances should increase
investment earnings only slightly in 2016. The City’s bank deposits are expected
to yield a favorable 0.53% in 2016 which is competitive with the current six-month
Treasury bill.
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
Month 2015 2014 2015 2014 2015 2014 2015 2014
January $48,260,965 $44,899,051 $42,805,543 $41,135,484 $91,066,508 $86,034,535 $12,222 $4,805
February 57,956,453 51,556,660 50,071,410 46,326,186 108,027,863 97,882,846 12,659 5,765
March 46,032,300 41,142,676 41,404,634 37,596,230 87,436,935 78,738,906 19,161 5,571
April 46,694,339 44,819,678 42,176,819 41,824,879 88,871,158 86,644,557 15,459 6,185
May 52,104,723 48,373,032 46,560,371 43,431,803 98,665,094 91,804,835 4,827 6,011
June 49,711,589 45,121,494 44,369,398 40,770,568 94,080,987 85,892,061 25,867 7,080
July 50,358,675 50,985,699 44,565,666 45,660,838 94,924,341 96,646,537 18,804 7,291
August
51,846,227 48,591,520 47,174,793 44,364,160 99,021,020 92,955,680 16,649 7,038
September 50,366,202 48,279,490 48,072,222 43,224,258 98,438,424 91,503,748 17,771 9,120
October 50,569,467 50,649,942 46,609,011 45,482,360 97,178,477 96,132,302 18,511 8,604
November 49,449,818 48,903,456 46,067,600 44,043,654 95,517,418 92,947,110 17,009 19,648
December - 49,348,276 - 44,623,076 0 93,971,352 - 14,221
Total $553,350,758 $572,670,974 $499,877,467 $518,483,496 $1,053,228,225 $1,091,154,469 $178,939 $101,339
Averages $50,304,614 $47,722,581 $45,443,406 $43,206,958 $95,748,020 $90,929,539 $1,667 $8,445
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. Averages are based on 12 months.
Source: Debbie Rogers, Office of State Treasurer
Local Option Sales and Use Tax in Arkansas
Sale and Use Tax Year-to-Date 2015 with 2014 Comparison (shaded blue)
Municipal Tax County Tax Total Tax Interest
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City of Little Rock, Arkansas 2016 Operating Budget
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
Overall franchise fee revenues in 2015 were 4.14% higher than 2014 levels.
CenterPoint Energy, the gas utility, experienced significant revenue decreases
totaling over $493,000 (13.2%) due to the mild winter of 2014/2015 and the
corresponding harsh winter of 2013/2014. The mild and short winter decreased
usage levels by 11.2%. The winter of 2015/2016 is forecasted to be affected by a
strong El Nino weather pattern with more precipitation than usual in the south
although temperatures could remain higher than normal which could lead to
reduced revenues from heating bills.
CenterPoint accumulates and stores natural gas for the next heating season. The
cost of natural gas makes up between 70% and 80% of the typical bill. CenterPoint
reports its natural gas costs to the Arkansas Public Service Commission at the end
of October each year. Those rates are passed along to customers with no profit
going to the utility. Gas revenues are expected to be 7.4% lower than actual 2015
levels and 19.6% lower than 2014 levels. The significant lowered estimates are a
result of lowered estimated gas cost prices. Increased natural gas reserves have
hit a record high level for the second year in a row. Sustained low prices for oil
and natural gas are anticipated to reduce the reserves in 2016. Certain franchise
fee revenues, such as Entergy, CenterPoint, and Central Arkansas Water are
directly impacted by the weather.
On January 13, 2015, the Arkansas Public Service Commission approved a 3.4%
rate increase for Entergy resulting from a recalculation in rates to address an
earlier $67.8 million shortfall. Although the 2015 summer was warmer than the
previous year with usage levels up 1.4%, the recalculated adjustment along with
an increase in other riders toward the end of the year, increased revenues 12.2%
or $1,553,240 more than 2014. The 2016 budgeted amount for Entergy is 2.66%
higher than 2015 levels due to an expected increase in the PCA rider. In 2015,
Entergy requested a rate increase from the Arkansas Public Service Commission
for improvements to its infrastructure and the purchase of one-fourth of a natural
gas plant. The Commission will be considering a rate increase of 8.4% in April
2016. However, Entergy says it is decreasing fuel costs that will most likely offset
the impact of the rate increase it is seeking. The decreased fuel costs should result
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City of Little Rock, Arkansas 2016 Operating Budget
in a 7.1% decrease on bills. The net rate increase should be $1.30 on a $100
monthly bill.
Central Arkansas Water (CAW) Board of Commissioners has announced that they
plan to raise rates in 2017 and 2018. Officials said that the increases will raise an
average customer’s rate by 8.9% both years. An average customer is considered
to be one that uses about 650 cubic feet of water per month and pays a monthly
water bill of $13.10. Other than wholesale customers, no rate adjustments are
planned for 2016. A warmer and dryer summer in 2015 increased water
consumption. These factors led to an increase in water revenues of approximately
$156,000 or 4.92% from 2014 levels. An on-going national trend is that water
consumption continues to decrease due to water saving appliances and
conservation measures, but weather is still the most significant factor. Central
Arkansas Water has forecasted an increase of approximately 3% in 2016
revenues, anticipating a more typical Arkansas summer with high temperatures
and dry conditions.
Little Rock Wastewater revenues were consistent from the previous year with no
significant changes. There was no announced rate increase for 2015, however,
Little Rock Wastewater issued debt in 2015 in the amount of $160,070,000 to
refund six (6) outstanding bond issues. The scheduled rate increase for 2016 is
4.75%. In addition, there are scheduled rate increases of 4.0% for 2018 and 6.0%
for 2019 to pay for the expansion of storage facilities and a pump station upgrade.
Scheduled rate increases were implemented to comply with the terms of the Sierra
Club lawsuit to reduce sanitary sewer overflows in Little Rock. The additional
revenue will be used to secure a $61 million loan from the Arkansas Natural
Resources Commission. As a result of the rate increase in 2016, revenues are
projected to increase by approximately $215,000 in 2016.
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City of Little Rock, Arkansas 2016 Operating Budget
Franchise fee revenues from local land line companies continue to decline from a
peak in 1998. For example, AT&T franchise fees were $2.6 million in 1996 and
only $652,000 in 2015. This trend is expected to continue in the foreseeable future,
with more customers migrating from utilization of a home phone (land line) and a
mobile phone to only a mobile phone. Revenue from local land line providers
declined 9.32% in 2015 and are expected to further decrease 7.2% in 2016. The
decline could be sharper but many alarm users still maintain a land line to operate
their security system.
The downward trend in traditional franchise fee revenues from long distance
providers is a result of an increase in wireless or mobile phone usage for long
distance calls. The franchise fee revenue from long distance decreased 0.92% in
2015. Long distance revenue is projected to remain steady in 2016 as a result of
effective collection efforts towards the numerous smaller telecommunication
companies.
Fiber optic companies, such as AT&T U-Verse and Windstream, are now in direct
competition with Comcast Cable, which has historically been one of the City’s
leading growth franchise customers. Overall, fiber optics and cable franchise
revenues decreased 1.31% in 2015. Windstream revenues for 2015 increased
5.63% while AT&T U-Verse franchise fees increased by 11.01% and Comcast
Cable declined 6.31%. Fiber optic companies rarely announce anticipated rate
increases in advance of the actual rate change. Cell phone, alarm system
revenues and Internet usage are not included in the franchise agreement. Annual
increases in Fiber Optic service fees are expected to be offset by customers
foregoing the cable companies and receiving all of their communications including
television via wireless or broadband connections. Fiber optic forecasted revenues
are projected to decline 1.35% for 2016.
Franchise fee revenues for fiscal year 2016 are forecasted to be 1.3% above 2015
receipts and relatively flat from the amended 2015 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.
SW Bel (AT&T) 0.00%
Entergy 0.00%
Long Distance 0.00%
Local Land Lines 0.00%
CenterPoint 0.00%
Central AR Water 0.00%
Fiber Optics 0.00%
Waste Water Utility 4.75%
Announced Utility Rate Increases for 2016
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City of Little Rock, Arkansas 2016 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 2015 license fees increasing 1.14% to over $6.44 million. The
increase of approximately $72,400 for 2015 is attributed to a steady local economy
and aggressive collection of delinquent accounts which includes programs to
locate businesses operating without a license. In 2015, the Treasury Management
Division implemented an electronic notification system that reminds business
owners of upcoming deadlines such as assessments, due dates, etc. via email
notifications. These email reminders should reduce the amount of penalty fees
associated with delinquent business licenses. 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. 2016 business license
revenue should be flat or experience a slight decrease as a result of the new
notification system.
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. 2015 mixed drink revenue was significantly above 2015 by 9.1%. 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 2016
budget anticipates an increase of approximately 1.2% over the 2015 amended
budget.
BUILDING AND RELATED PERMITS
Building and related permits, which include electrical permits, plumbing permits,
and heating ventilation and air conditioning (hvac) permits, were approximately
11.1% below 2014 but 9.1% over the 2015 amended budget. Lower building and
related permits revenues were expected from the record construction that occurred
in 2014. A large portion of the increase in 2015 was related to large one-time
commercial construction projects such as the Gateway Mall, next to the Bass Pro
Shop in Southwest Little Rock and the FedEx Distribution Center. Commercial
permits pulled for tenants of the Gateway Mall continued in 2015. 2016 building
permits are expected to decline approximately 8%. The City’s Planning and
Development Department forecasts smaller commercial construction projects with
no large retail centers anticipated. The Department expects more hotels and multi-
family complexes to be built in 2016. Residential construction is projected to
remain stagnant. Continued favorable interest rates should continue to spur
commercial construction activity in Little Rock.
FINES
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City of Little Rock, Arkansas 2016 Operating Budget
Fines and related fees comprise 1.4% of the 2016 budget. 2015 fines and fees
were approximately $335,000 or 11.2% below the previous year. Traffic and
parking fine revenues continued to be the main contributors to the decrease.
Parking fine revenues decreased 11.3% from one year ago. For the first time in
five years, Parking Enforcement will be operating with five full-time parking
technicians which is expected to increase parking fine revenues to 2013 levels.
The net result of a full staff is projected to increase revenues approximately 19%
in 2016. The district courts experienced a major system conversion in February
2015. There were concerns about the transfer of historical data, which delayed
the issuance of tickets and warrants. A deficiency of the new court management
system is the division of revenue between the three district courts. Staff is working
with the Administrative Office of the Courts to segregate the revenues of the three
courts for future analysis. 2016 Fines and Fees revenues are expected to increase
6.1% from 2015.
PARK & ZOO REVENUE
General Fund park revenues are generated by three (3) golf courses, tennis fees,
community center fees, athletics fees, summer programs and pavilion rentals.
Prior to 2013, the Zoo, Jim Dailey Fitness & Aquatic Center, and the municipal golf
courses (Rebsamen, Hindman and War Memorial) were operated as separate
enterprise funds. At the end of 2012, these activities were consolidated into the
General Fund. The 2016 General Fund parks and Zoo budget includes an
increase of approximately 1% or $40,000 from 2015 actuals. With no schedule fee
increases for the golf courses, tennis centers, community centers or the Zoo, 2016
revenues were forecasted from 2015 actuals with no significant revenue increase
in park related revenues.
Excluding transfers in and donations, Zoo revenues decreased approximately
8.9% or $343,862 from one year ago. Actual revenues were 15.9% below the
original 2015 budget but 3.74% above the amended budget. Similar to park
revenues, Zoo revenues are heavily dependent on weather conditions. The early
spring months of April, May and June are the peak months for the Zoo because of
the mild temperatures. Zoo admissions in April, May and June were down 12.8%
compared to
the same
period a year
ago. The drop
is attributed to
significant
rainfall and
flooding that
extended into
June. Annual
Zoo
memberships
are less
dependent on
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City of Little Rock, Arkansas 2016 Operating Budget
weather and increased 1.8%. Zoo admissions decreased 12.3% and Zoo
concessions decreased 15.4%. Overall, 2016 Zoo revenues are projected to be
consistent with the 2015 Amended Budget and approximately 1.7% lower than
2015 actual revenues. There were no fee increases scheduled for 2016. The
forecast is conservative due to the dependency on weather conditions. However,
the opening of a new Arkansas Farms exhibit could stimulate a growth in
attendance.
The City operates
three (3) public golf
courses and relies
heavily on greens
fees and
concession
revenues to
operate these
courses.
Historically, March
is the start of the
busy season for
golf courses.
Similar to Zoo revenues, significant rainfall during the busiest months reduced
revenues in 2015. Excluding the debt service contribution, overall golf revenues
were 4.3% below 2014 levels. 2015 Rebsamen Golf revenues decreased
approximately 9%. War Memorial revenues actually increased 2.81% from one
year ago and Hindman Golf Course decreased 4.3% With no announced rate
increases, the golf courses are projected to maintain consistent revenues for
2016.
AIRPORT REIMBURSEMENT
The Little Rock National Airport reimburses the City for expenses related to police
and fire protection. In 2015, airport police reimbursements decreased 1.9% to
$1.84 million and airport fire reimbursements increased 1.8% to $1.28 million.
Staffing levels should be consistent with 2015 but airport police overtime is
expected to increase approximately $185,000.
STREET GAS TAX TURNBACK
The City receives state turnback funds directed to the Street Department. The gas
tax turnback is allocated based on the latest census and gallons of fuel consumed.
Basically, 15% of the tax on gasoline consumption goes toward municipal aid or
gas turnback. The passage of Constitutional Amendment No. 1 in the general
election of 2012 provided additional funding for State, County and City streets and
bridges with a temporary one-half percent (0.5%) sales and use tax for road
construction and maintenance. The ten (10)-year sales tax is effective from July 1,
2013 through December 2022. 2015 revenues were 0.43% lower than 2014, which
is attributed a reduction in number of gasoline gallons consumed. Gas turnback
funds have been trending downward as a result of lower gas consumption
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City of Little Rock, Arkansas 2016 Operating Budget
associated with more fuel efficient automobiles. The State Highway Department’s
turnback projection for 2016, including gas tax, severance tax and sales tax is
$12.79 million. The 2016 Street Fund turnback appropriation increased from a
revised $64.75 to $65.00 per capita, a 0.39% increase. The 2016 street turnback
estimate includes proceeds from the new highway 1/2-cent sales tax and
severance tax on natural-gas. Currently, approximately 4% of the turnback is
attributed to the natural gas severance tax.
BOND & INTEREST FUND
Revenues from this fund were utilized to finance the debt service on the
$70,635,000 Limited Tax Bond Issue, Series 2004. In November 2003, voters
approved the continuance of a 3.3 annual property tax millage for debt service on
the bonds. The bonds were fully redeemed on April 1, 2013. The voters of Little
Rock approved a new annual ad valorem tax at a lesser rate of 3.0 mills at a special
election on September 11, 2012. The reduced millage replaces the previous 3.3
mill tax and is pledged for the financing of $105 million in street and drainage
improvements. On July 15, 2013, the City issued $58,105,000 of general obligation
debt ($42,000,000 for street improvements and $18,000,000 for drainage
improvements). The millage, along with the Homestead Credit, which is monies
generated from a state-wide half-cent sales tax, produced approximately $11.2
million (excluding Excess Commissions) toward 2015 debt service on the
outstanding bonds.
WASTE DISPOSAL
The 2015 Waste Disposal charges for services revenues increased 1.41%
compared to 2014. Landfill fees increased over 16% from 2014 levels. The landfill
increase is attributed to two large customers that are receiving volume discounts.
In addition, an increase in gate fees at competing landfills and the opening of a
new Class 4 cell contributed to the increased revenue. Revenues from methane
gas production has steadily decreased as the exclusive vendor continues to have
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City of Little Rock, Arkansas 2016 Operating Budget
equipment issues. Compost revenues are also declining as more residents are
composting in their backyards.
The monthly residential rate for sanitation pickup remained at $22.02. There are
approximately 58,200 households currently receiving garbage collection services.
No rate increases are scheduled for 2016. In addition, approximately 280
commercial vendors pay an average rate of $33.37 a month for waste disposal
services. The 2016 budget for sanitation fees of approximately $16.15 million is in
line with 2015 actual results. Landfill fees are expected to generate approximately
$1,500,000 in 2016 which is an increase of 5.81%. Methane gas captured by the
landfill is piped to a single vendor and is expected to generate $50,000 in annual
revenues.
VEHICLE STORAGE
Vehicle Storage revenues are generated from storage fees, wrecker fees, and
auction sales. These revenue sources contributed approximately 88% of total
2015 revenues, but declined 11.3% from one year ago. Overall Vehicle Storage
revenues decreased 13%. The number of wrecker tows in 2015 was 238 less than
the same period one year ago. Fewer vehicles towed results in lower storage fees
and wrecker fees and reduced the number of vehicles available for auction. The
2016 overall revenue budget is 14.5% higher than 2015 actuals. The daily storage
fees were increased from $37 to $40 a day with an increase in projected revenue
of $45,400. The average sales price per vehicle auctioned in 2015 was $569.60.
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City of Little Rock, Arkansas 2016 Operating Budget
PARKING GARAGE FUND
The City of Little Rock operates two downtown parking garages. Garage revenues
are generated by daily and monthly parking fees at the Second and Main Street
Parking Facility and the RiverMarket Parking Garage. In addition to garage fees,
annual business license fees received from the rental and/or leasing of
automobiles and trucks, parking meter revenues, and street repair fees collected
from utility companies are pledged to debt service on the bonds issued to construct
the parking garages. Overall parking garage revenues were 16.3% higher in 2016
than 2015. . Monthly revenues from the Statehouse and the RiverMarket Garages
were 19.7% higher in 2015. The majority of this increase is attributed to the
RiverMarket Garage which was up over 26% from last year. The parking garage
added two new monthly customers in 2015. Daily revenues from both garages
increased 8.9% with the majority of that increase attributed to the Second and Main
Garage which has experienced increased parking due to the growing popularity of
the RiverMarket district and an overall reduction in available parking spaces
downtown.
Street cut revenues increased approximately $93,000 with the majority of this
increase coming from Little Rock Wastewater, JLC Communications and Central
Arkansas Water street repairs and maintenance in the City’s right-of-way. Overall
parking Garage Fund revenues are expected to increase approximately 2.5%
compared to one year ago.
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General Fund Revenues
Sources and Trends
2011-2016
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%.
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Expenditures
CITY OF LITTLE ROCK
2016 BUDGET SUMMARY
ALL FUNDS EXPENSES
$255,456,581
Street
Fund
8.05%
Fleet
Services
4.98%
Waste
Disposal
6.63%
General
Fund
78.93%
Vehicle Storage
Facility
.53%
Parking
Garages
.88%
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2014 2015 2015 2016 15/16 %
GENERAL FUND ACTUAL ADOPTED AMENDED* ADOPTED DIFF CHANGE
General Administrative $25,830,908 $28,062,042 $27,439,556 $29,977,808 $2,538,252 9.25%
Board of Directors 322,119 342,027 342,064 342,818 754 0.22%
Community Programs 461,520 423,578 402,143 427,559 25,416 6.32%
City Attorney 1,671,152 1,836,901 1,737,560 1,939,007 201,447 11.59%
District Court First Division 1,291,042 1,405,790 1,396,226 1,410,338 14,112 1.01%
District Court Second Division 1,232,380 1,248,245 1,281,588 1,365,334 83,746 6.53%
District Court Third Division 607,294 626,782 639,286 627,195 (12,091) -1.89%
Finance 3,070,989 3,204,124 3,142,989 3,407,407 264,418 8.41%
Human Resources 1,653,539 1,673,177 1,771,481 1,810,554 39,073 2.21%
Information Technology 4,096,076 4,679,784 3,898,233 4,843,151 944,918 24.24%
Planning Development 2,134,460 2,564,192 2,174,153 2,566,299 392,146 18.04%
Housing & Neighborhood Programs 4,726,526 5,790,389 4,950,893 5,866,198 915,305 18.49%
Public Works 1,050,059 1,159,922 1,049,223 1,191,100 141,877 13.52%
Parks & Recreation 9,051,022 9,958,932 9,170,196 10,207,910 1,037,714 11.32%
River Market 1,227,229 1,209,164 1,209,164 1,174,745 (34,419) -2.85%
Golf 2,376,312 2,308,904 2,397,757 2,288,313 (109,444) -4.56%
Jim Dailey Fitness and Aquatic Center 874,928 901,127 876,776 909,546 32,770 3.74%
Zoo 6,546,205 6,733,727 6,109,593
6,810,041 700,448 11.46%
Fire 45,464,926 46,232,253 46,475,323 47,365,844 890,521 1.92%
Police 66,191,838 68,885,072 66,673,664 70,548,138 3,874,474 5.81%
Vacancy Savings (6,000,000) (6,000,000) (6,000,000) N/A
Sub-total General Operating 179,880,525 183,246,132 183,137,868 189,079,305 5,941,437 3.24%
TRANSFERS OUT/OTHER EXPENSES
Transfer out to Street Fund 1,082,000
1,082,000 1,082,000 1,082,000 - 0.00%
Special Projects/PIT 9,300,111 9,412,079 12,242,282 10,482,924 (1,759,358) -14.37%
Contingency/Reserve 550,000 1,000,000 1,000,000 1,000,000 - 0.00%
Sub-total of Transfers Out 10,932,111 11,494,079 14,324,282 12,564,924 (1,759,358) -12.28%
TOTAL GENERAL FUND 190,812,636 194,740,211 197,462,150 201,644,229 4,182,079 2.12%
OTHER FUNDS
Public Works - Street 17,166,207 20,050,226 20,050,226 20,557,426 507,200 2.53%
Fleet Services 12,688,818 13,294,275 13,447,467 12,714,282 (733,185) -5.45%
Vehicle Storage Facility 1,332,818 1,359,144 1,359,144 1,359,792 648 0.05%
Waste Disposal 15,419,241 17,127,479 17,127,479 16,928,866 (198,613) -1.16%
Parking Garages 2,178,024 2,196,750 2,196,750 2,251,986 55,236 2.51%
Sub-total Other Operating Funds 48,785,108 54,027,874 54,181,066 53,812,352 (368,714) -0.68%
TOTAL ALL FUNDS 239,597,744$ 248,768,085$ 251,643,216$ 255,456,581$ 3,813,365$ 1.52%
* The 2015 Amended Budget includes a reduction in departmental budgets for vacancy savings achieved throughout the year.
Vacanc
y
savin
g
s represents savin
g
s from authorized but unfilled positions. The 2015 vacanc
y
savin
g
s
g
oal was full
y
realized
.
CITY OF LITTLE ROCK
2016 OPERATING & OTHER BUDGETED EXPENDITURES
118
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$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
2014 2015 2016
Police Fire
All Others General Administration
Transfers Parks & Recreation
General Government
Summary of Appropriations
2014-2016
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2014 2015 2016
CATEGORY Actual Budget Budget
Salaries Wages and Employee Benefits $138,522,805 $139,939,883 $143,834,450
Supplies and Materials 6,288,340 6,338,170 6,235,034
Repairs and Maintenance 6,587,136 7,093,723 7,254,786
Contractual 21,421,431 21,789,639 22,540,429
Capital Outlay 605,620 370,000 253,000
Debt Service 6,455,192 7,714,717 8,961,606
Transfers 10,932,111 11,494,079 12,564,924
Total Expenditures $190,812,635 $194,740,211 $201,644,229
Staffing Level 1,708 1,722 1,737
Ratio 8.95 8.84 8.61
GENERAL FUND SUMMARY
EXPENDITURES BY CATEGORY
8.40
8.60
8.80
9.00
2014 2015 2016
STAFFING LEVEL PER MILLION DOLLARS BUDGETED
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2014
A
ctual
Expend.
2015
A
dopted
Budget
2016
A
dopted
Budget
GENERAL FUND
GENERAL ADMINISTRATIVE
101001 City Cler
k
196,070$ 190,541$ 206,270$
101002
A
dministrative & General 19,484,159 21,480,968 23,209,560
101003 Employee Benefits 4,311,705 4,514,550 4,341,500
101004 Racial and Cultural Diversit
y
158,723 154,688 156,970
101005 Mayo
r
342,263 276,689 512,902
101006 City Manager Administration 959,271 1,085,126 1,106,268
101007 Emergency Management 74,790 64,162 56,282
101008 Small & Minority Women Owned Bus. Dev. 50,740 53,443 98,598
101009 Little Rock Television 253,187 241,875 289,458
Total General Administrative 25,830,908 28,062,042 29,977,808
BOARD OF DIRECTORS
101100 Board of Directors 322,119 342,027 342,818
COMMUNITY PROGRAMS
101501
A
dministration 371,809 334,441 337,100
101503 Operations 89,711 89,137 90,459
Total Community Programs 461,520 423,578 427,559
CITY ATTORNE
Y
101801 City Attorne
y
1,671,152 1,836,901 1,939,007
LITTLE ROCK DISTRICT COURT
102101 District Court First Division 1,291,042 1,405,790 1,410,338
LITTLE ROCK DISTRICT COURT
102201 District Court Second Division 1,232,380 1,248,245 1,365,334
LITTLE ROCK DISTRICT COURT
102301 District Court Third Division 607,294 626,782 627,195
FINANCE
102501
A
dministration 586,882 579,508 609,245
102515 Budget 166,062 175,177 178,156
102520 Internal Audit 167,918 170,225 247,715
102530
A
ccounting and Reporting 499,804 539,657 586,458
102531
A
ccounts Payable 304,437 341,316 336,100
102535 Payroll 204,822 212,409 213,557
102540 Treasury Management 557,022 609,081 619,110
102550 Purchasing 303,982 240,909 311,442
102555 Print Shop 17,060 65,517 35,159
102560 Grants Management 263,000 270,325 270,465
Total Finance 3,070,989 3,204,124 3,407,407
HUMAN RESOURCES
102701 Human Resources 1,653,539 1,673,177 1,810,554
INFORMATION TECHNOLOG
Y
103001
A
dministration 867,441 1,010,105 935,373
103010
A
pplication Programming 1,158,395 1,376,331 1,409,061
103030 Networking 2,070,240 2,293,348 2,498,717
Total Information Technolog
y
4,096,076 4,679,784 4,843,151
CITY OF LITTLE ROCK
2016 OPERATING EXPENSES
121
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2014
A
ctual
Expend.
2015
A
dopted
Budget
2016
A
dopted
Budget
CITY OF LITTLE ROCK
2016 OPERATING EXPENSES
PLANNING AND DEVELOPMENT
103301
A
dministration & Budget 269,346 305,083 312,278
103310 Planning 319,566 440,589 461,908
103320 Zoning & Subdivision 720,034 850,885 853,160
103330 Building Codes 825,515 967,635 938,953
Total Planning and Development 2,134,460 2,564,192 2,566,299
HOUSING AND NEIGHBORHOOD PROGRAMS
103501
A
dministration 270,836 369,781 367,920
103510
A
nimal Services 955,909 1,209,089 1,287,459
103520 CDBG - Housing Programs 971 14,367 9,873
103530 Neighborhood Programs 2,282,759 2,936,131 2,951,115
103539 Neighborhood Alert Centers 790,623 791,325 782,304
103540 Neighborhood Resource Cente
r
185,000 231,506 235,757
103550 Environmental Services 240,428 238,190 231,770
Total Housing and Neighborhood Programs 4,726,526 5,790,389 5,866,198
PUBLIC WORKS
104010 Building Services 1,050,059 1,088,666 1,118,163
104020
A
sset Management - 71,256 72,937
Total Public Works 1,050,059 1,159,922 1,191,100
PARKS AND RECREATION
104501
A
dministration 372,928 448,472 465,054
104503 Design Scheduling 325,594 312,062 316,480
104510 Resources Administration 347,585 455,154 462,513
104511 Cultural Museum 179,370 199,896 201,338
104512 Therapeutic 127,498 174,482 175,350
104521 Development and Maintenance 142,251 99,794 139,349
104522 Operations and Improvement Development 1,007,668 1,119,932 1,113,805
104523 Park Maintenance 2,452,202 2,472,819 2,312,303
104524 Horticulture 786,502 950,727 1,073,327
104525 Urban Forestr
y
368,269 509,081 514,621
104530 Recreation Administration 187,882 155,774 159,427
104531 Community Center Administration 104,040 113,418 105,545
104532 Dunbar Community Cente
r
459,278 447,420 448,680
104533 East Little Rock Recreation Cente
r
79,818 79,852 85,135
104534 Senior Programs 70,417 102,900 103,335
104536 Southwest Community Cente
r
608,998 647,196 611,856
104537 Stephens Community Cente
r
269,803 256,282 245,332
104538 The Centre at University Park 259,201 297,195 337,166
104539 West Central Community Cente
r
- 136,680 350,273
104556
A
thletics/Playgrounds 587,864 606,794 608,403
104557 Tennis Center Operations 263,282 289,935 293,526
104558 N.W. Hill Community Comple
x
50,572 83,067 85,092
Total Parks and Recreation 9,051,022 9,958,932 10,207,910
RIVER MARKET 1,227,229 1,209,164 1,174,745
GOLF
104701
A
dministration 94,187 94,927 96,990
104710 Rebsamen Golf Pr
o
468,742 433,183 435,081
104711 Rebsamen Golf Maintenance 543,448 519,608 496,782
104712 Rebsamen Pro Golf Concessions 96,501 77,520 88,787
104720 War Memorial Golf Pr
o
291,383 284,502 286,452
104721 War Memorial Golf Maintenance 309,067 315,714 303,827
104740 Hindman Pro Golf 310,792 324,015 326,691
104741 Hindman Golf Maintenance 262,191 259,435 253,703
Total Golf Fund 2,376,312 2,308,904 2,288,313
122
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2014
A
ctual
Expend.
2015
A
dopted
Budget
2016
A
dopted
Budget
CITY OF LITTLE ROCK
2016 OPERATING EXPENSES
JIM DAILEY FITNESS AND AQUATIC CENTER 874,928 901,127 909,546
ZOO
106501 Zoo Administration 347,044 381,953 563,822
106510 Zoo Concessions 401,074 368,343 382,783
106520 Zoo Education 284,191 384,918 381,787
106530 Zoo Gift Shop 262,307 270,077 288,119
106540 Zoo Membership 73,768 68,215 68,234
106550 Zoo Special Events 128,787 108,297 103,430
106560 Zoo Marketing & Promotions 497,672 449,970 349,485
106570 Zoo Facilities Operation 2,012,892 2,051,227 1,976,590
106580
A
nimal Management 2,198,434 2,312,555