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2016 Annual Operating Budget City of Little Rock, Arkansas

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2016 Annual Operating Budget City of Little Rock, Arkansas 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) This page left blank intentionally. 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. 3 This page left blank intentionally. 4 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 5 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 6 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 .................................................
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