Comprehensive Annual Financial Report For the year ended December 31, 2019 City of Little Rock, Arkansas On the Cover: The Little Rock Fire Department’s Station 24 opened in February 2020. Located at 8801 Stagecoach Road, it services a portion of Southwest Little Rock. Ground was broken in October 2018 for this project, which was funded by the LR CENT Sales Tax approved by voters in 2011. The building was designed by Jackson Brown Palculict Architects; Baldwin & Shell Construction Company served as the contractor for the project. (Photo by: Scott Whiteley Carter) COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF LITTLE ROCK, ARKANSAS FISCAL YEAR ENDED DECEMBER 31, 2019 PREPARED BY: City of Little Rock, Arkansas Year Ended December 31, 2019 Contents Introductory Section (Unaudited) Letter of Transmittal ............................................................................................................................ i GFOA Certificate of Achievement for Excellence in Financial Reporting ...................................... xii Organizational Chart ....................................................................................................................... xiii List of Elected and Appointed Officials .......................................................................................... xiv Financial Section Independent Auditor’s Report ............................................................................................... 1 Management’s Discussion and Analysis (Unaudited) ........................................................ 4 Basic Financial Statements Government-Wide Financial Statements: Statement of Net Position ................................................................................................................. 22 Statement of Activities ..................................................................................................................... 23 Fund Financial Statements: Balance Sheet – Governmental Funds .............................................................................................. 24 Reconciliation of the Balance Sheet – Governmental Funds to the Statement of Net Position ....... 25 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ..................................................................................... 26 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds to the Statement of Activities ..................................... 27 Statement of Net Position – Proprietary Funds ................................................................................ 28 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds ..................... 29 Statement of Cash Flows – Proprietary Funds ................................................................................. 30 Statement of Fiduciary Net Position – Fiduciary Funds ................................................................... 31 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ................................................ 32 Statement of Net Position – Discretely Presented Component Units ............................................... 33 Statement of Activities – Discretely Presented Component Units ................................................... 34 Notes to Financial Statements .......................................................................................................... 35 City of Little Rock, Arkansas Year Ended December 31, 2019 Contents (Continued) Required Supplementary Information (Unaudited) Budgetary Comparison Schedule – General Fund .......................................................................... 111 Notes to Budgetary Comparison Schedule – General Fund ........................................................... 112 Budgetary Comparison Schedule – Street Fund ............................................................................. 113 Other Postemployment Benefit Plan – Schedule of Changes in the City’s Net OPEB Liability and Related Ratios…………………………………………………………….114 Other Postemployment Benefit Plan – Schedule of City Contributions ......................................... 115 Other Postemployment Benefit Plan – Schedule of Investment Returns ....................................... 116 Schedule of Changes in the City’s Net Pension Liability and Related Ratios ............................... 117 Schedule of City’s Contributions ................................................................................................... 121 Schedule of the City’s Proportionate Share of the Net Pension Liability and Contributions ......... 123 Schedule of Investment Returns ..................................................................................................... 127 Combining and Individual Fund Statements (Unaudited) Governmental Funds – Nonmajor: Combining Balance Sheet ......................................................................................................... 128 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................................... 129 Special Revenue Funds – Nonmajor: Combining Balance Sheet ......................................................................................................... 130 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................................... 131 Debt Service Funds – Nonmajor: Combining Balance Sheet ......................................................................................................... 132 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................................... 133 Capital Project Funds – Nonmajor: Combining Balance Sheet ......................................................................................................... 134 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................................... 135 City of Little Rock, Arkansas Year Ended December 31, 2019 Contents (Continued) Fiduciary Funds Combining Statement of Fiduciary Net Position – Pension and Other Employee Benefit Trust Funds .................................................................................... 136 Combining Statement of Changes in Fiduciary Net Position – Pension and Other Employee Benefit Trust Funds ............................................................... 137 Statement of Changes in Assets and Liabilities – Agency Fund – Court Fund ......................... 138 Nonmajor Discretely Presented Component Units Combining Statement of Net Position ....................................................................................... 139 Combining Statement of Activities ........................................................................................... 140 Combining Statement of Revenues, Expenses and Changes in Net Position ............................ 141 Statistical Section (Unaudited) Net Position by Component – Accrual Basis of Accounting ......................................................... 142 Changes in Net Position – Accrual Basis of Accounting ............................................................... 143 General Governmental Tax Revenues by Source – Accrual Basis of Accounting ......................... 144 Fund Balances of Governmental Funds – Modified Accrual Basis of Accounting ........................ 145 Changes in Fund Balances of Governmental Funds – Modified Accrual Basis of Accounting ..... 146 General Governmental Tax Revenues by Source – Modified Accrual Basis of Accounting ......... 147 Assessed and Appraised Value of Taxable Property ...................................................................... 148 Property Tax Rates and Tax Levies of Direct and Overlapping Governments .............................. 149 Principal Sales Taxpayers ............................................................................................................... 150 Property Tax Levies and Collections .............................................................................................. 151 Ratios of Outstanding Debt by Type .............................................................................................. 152 City of Little Rock, Arkansas Year Ended December 31, 2019 Contents (Continued) Ratios of General Bonded Debt Outstanding ................................................................................. 153 Direct and Overlapping Governmental Activities Debt ................................................................. 154 Legal Debt Margin Information ..................................................................................................... 155 Pledged Revenue Bond Coverage .................................................................................................. 156 Demographic and Economic Statistics ........................................................................................... 157 Little Rock Area Principal Employers ............................................................................................ 158 Full-time Equivalent City Government Employees by Function ..................................................