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Home My WebLink About195-92 RESOLUTIONRESOLUTION NO. 195-Q2 A RESOLUTION APPROVING THE 1993 ANNUAL. OPERATING BUDGET AND WORK PROGRAM FOR THE CITY OF FAYETTEVILLE. ARKANSAS. BE 1T RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council hereby approves the 1993 Budget and Work Program, by category, for all fund types with approved changes, marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 15th day of December . 1992. APPROVED: it., ATTEST: By: Clf� doh Sherry . Thomas. City Clerk 'Fred Hanna, Mayor V 112IHX3 •Aadwi levdeo g Re -roof Library Annex $ 16,300 2290 3 3 3 3 3 3 3 3 C C C C • 7 1313-v CO m w 5.555 coo /0 MMMg 9. 9299 3332 00 00 • 00 cc 50 0 0 0 c0 O co 0000 m m in gtal al m m m C a 0 in- in - CD CD CD O N • m N O o O -gget g 000-0 0000 m• amarbb FHA n 3 3(5 en f• m0 Im0 (mn 4444 ?ph CJ CO ACT g 41 J 0 40 0 N 0 an m w O O iso k O S M O' 03a-1 CD w 900 cn C N 0 O 3 MICROFILMED • • • r1:1.:-;;;4•;••-:;' a::y. 1993 City of Fayetteville, Arkansas aitasammis Annual Budget and Work Program City of Fayetteville, Arkansas 1993 Annual Budget and Work Program City Council Stephen Miller Conrad Odom Fred Vorsanger Joan Chapman Kit Williams Woody Bassett Len Edens Heather Daniel Fred Hanna, Mayor Ben Mayes, Administrative Services Director Richard Watson, Police Chief Mickey Jackson, Fire Chief Alett Little, Planning Management Director Kevin Crosson, Public Works Director Prepared by Stephen Davis, Budget Coordinator Scott Huddleston, Financial Analyst Kevin Springer, Research Analyst Brian Swain, Asst. to the Admin. Services Director GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO City of Fayetteville, Arkansas For the Fiscal Year Beginning January 1, 1992 President Executive Director The Government Finance Officers Association of the United States and Canada (GFOA) presented an award for the Distinguished Budget Presentation to the City of Fayetteville, Arkansas for its annual budget for the fiscal year beginning January 1, 1992. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations 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 continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. 1 City of Fayetteville, Arkansas Table of Contents Budget Message Transmittal Memo from the Mayor to Council 1 Addendum 4 Community Overview 5 Budget Document 7 Budget Process and Policies Budget Process 9 Budget Flowchart 11 Budget Organizational Structure 12 Administrative Procedures to Adjust the Approved Budget 13 Financial Policies: Revenue Policy 15 Expenditure Policy 15 Debt Policy 16 Reserve Policy 16 Investment and Cash Management Policy 16 Capital Improvement Policy 17 Financial Reporting Policy 17 Fund Summaries Chart of Fund Types - Governmental 18 Combined Statement of Fund Position - Governmental (Shown by Department) 19 Chart of Fund Types - Propnetary & Fiduciary 20 Combined Statement of Fund Equity - Propnetary & Fiduciary (Shown by Department) 21 Source and Uses of Funds 22 Govemnaxilal Funds General Fund: Comparative Budget Sununary 23 Sources and Uses of Funds 24 Expenditure Summary 25 Special Revenue Funds Street Fund: Revenue & Expenditure Summary 27 Sources & Uses of Funds 28 City Advertising & Promotion Fund: Revenue & Expenditure Summary 29 Off Street Parking Fund: Revenue & Expenditure Summary 30 Community Development Block Grant Program: Revenue & Expenditure Summary 31 Aging Transportation Fund: Revenue & Expenditure Summary 32 Drug Enforcement Program: Revenue & Expenditure Summary 33 Debt Service Funds Arts Center Bond Fund: Revenue & Expenditure Summary 34 City Sales Tax Bond Fund: Revenue & Expenditure Summary 35 Capital Projects Funds Arts Center Project Fund: Revenue & Expenditure Summary 36 Replacement Fund: Revenue & Expenditure Summary 37 Capital Improvements Construction Fund: Revenue & Expenditure Summary 38 Sales Tax Construction Fund: Revenue & Expenditure Summary 39 Enterprise Funds Industrial Park Fund: Revenue & Expenditure Summary 40 Water & Sewer Fund: Revenue & Expenditure Summary 41 Sources & Uses of Funds 42 Solid Waste Fund: Revenue & Expenditure Summary 43 Sources & Uses of Funds 44 Airport Fund: Revenue & Expenditure Summary 45 Sources & Uses of Funds 46 C E C and Parking Facility Fund: Revenue & Expenditure Summary 47 Trust Funds Walton Arts Center Endowment: Revenue & Expenditure Summary 48 Police Pension Fund: Revenue & Expenditure Summary 49 Fire Pension Fund: Revenue & Expenditure Summary 50 Municipal Judge Retirement Fund: Revenue & Expenditure Summary 51 • Internal Service Funds Shop Fund: Revenue & Expenditure Summary 52 Management Fund: - Revenue & Expenditure Summary 53 General Government: Organizational Structure 54 Overview 55 Program Expenditure Summary 56 Personnel Summary 59 Mayor 61 City Council 63 City Treasurer 65 City Manager 67 1 1 1 1. 1 1 1 r 1 1 1 1 1 1 1 City Attorney - Legal 69 City Prosecutor 71 Hot Check 73 Municipal Judge 75 Cable Administration 77 Internal Auditing 79 City Clerk 81 Miscellaneous 83 Airport - Administration 85 Airport - Janitorial 87 Airport - Building & Grounds 89 Airport - Landside Operations 91 Airport - Airside Operations 93 Airport - Capital 95 Economic Development 96 Administrative Services: Organizational Structure 97 Overview 98 Program Expenditure Summary 99 Personnel Sununary 102 Administrative Services Director 104 Personnel - Human Resources 106 Accounting and Audit 108 Budget and Research 110 Utility Billing and Collection 112 General Maintenance 114 Janitorial 116 Procurement 118 Risk Management 120 Data Processing 122 Municipal Court - Criminal 124 Municipal Court - Probation/Pine Collection 126 Municipal Court - Small Claims/Civil 128 Animal Control - Patrol/Emergency Response 130 Animal Control - Animal Shelter 132 Meter Operations 134 Water and Sewer Services - Capital 136 Shop - Vehicle Maintenance 138 Shop - Capital 140 Police Department: Organizational Structure 141 Overview 142 Program Expenditure Summary 143 Personnel Summary 144 Police - Support Services 146 Police - Patrol 148 Central Dispatch 150 Police - Drug Enforcement 152 Fire Department: Organizational Structure 154 Overview 155 Program Expenditure Summary 156 Personnel Summary 157 Fire - Fire Prevention 159 Fire - Operations 161 Fire - Training 163 Fire - Hazardous Materials 165 Planning Management: Organizational Structure 167 Overview 168 Program Expenditure Summary 169 Personnel Summary 171 Planning Management Director 172 Planning - Permits & Code Enforcement 174 Planning - Boards and Committees 176 Planning - Urban Forestry & Forestry 178 Planning - Long Term Planning 180 Inspections 182 Community Development - Administration 184 Community Development - Housing Rehab 186 Community Development 188 Public Works: Organizational Structure 190 Overview 191 Program Expenditure Summary 192 Personnel Summary 198 Public Works Director 201 City Engineering - Plans and Specifications 203 City Engineering - Operations & Administration 205 City Engineering - Right of Way Acquisition 207 City Engineering - Public Construction Admin. 209 Street - Operations & Administration 211 Street - Maintenance of Right of Way 213 Street - Street Maintenance 215 Street - Drainage Maintenance 217 Street - Street Construction 219 Street - Construction of Drainage Structures 220 Water - Water Purchased 221 Water - Water Administration 223 Water - Water Distribution Maintenance 225 Water - Water Storage/Pump 227 Water - Growth Area Main Maintenance 229 Water - Maintenance Farmington/Greenland 231 Sewer - Sewer Administration 233 Sewer - Sewer Main Maintenance 235 Sewer - Maintenance Farmington/Greenland 235 Pollution Control Plant - Capital 239 Water - Capital Water Mains 240 Water - Capital Expenditures 241 Water - Water Connections 242 Water - Rural Water Connection 243 Sewer - Sewer Mains Construction 244 Sewer - Capital Expenditures 245 Sewer - Sewer Connections 246 1 1 1 r 1 1 1 1 1 1 1 1 1 1. 1 1 1 1 Waste Water Treatment Plant Water and Sewer - Debt Service Solid Waste - Operation & Administration Solid Waste - Commercial Collection Solid Waste - Residential Collection Solid Waste - Recycling Solid Waste - Composting Parks - Admimslration Parks - Swimming Pool Parks - Athletic Programs Parks - Parks - Parks - Parks - Parks - Traffic Traffic Traffic Recreational Transfers Public Library Lake Maintenance Park Maintenance Batlfield Maintenance - Administration & Enforcement - Engineering & Planning - Traffic Control & Parking Meter Maint. Capital Improvements Program: 247 248 249 251 253 255 257 259 261 263 265 267 269 271 273 275 277 279 Capital Improvements Program Introduction 281 Capital Improvement Construction Fund 1993 Capital Budget 282 Sales Tax Construction Fund 1993 Capital Budget 283 Miscellaneous 1993 Capital Budgets 284 Capital Improvement Program Overview 285 Summary of Project Requests & Project Resources 290 Capital Improvement Protects by Fund - All Sources 291 Sales Tax Bond Issue Funding 292 Sales Tax Pay As You Go Funding 293 Capital Improvements Program Comprehensive Detail 294 Annendix City of Fayetteville Organizational Chart 298 List of Elected Officials, Administrative Officials, & Management Staff 299 Personnel Variation Summary 300 Major Revenue Sources 303 Debt Position 304 Schedule of Bonds Outstanding 306 Glossary 307 Index 312 I FAYETTEVILLE 1 1 'HE CITY OF FAYETTEVILLE. ARKANSAS December 15. 1992 Fayetteville City Council City of Fayetteville, Arkansas Fayetteville, Arkansas Members of City Council: I hereby submit the Approved Budget of the City of Fayetteville, Arkansas for the fiscal year 1993. It is prepared and submitted in compliance with the Arkansas statutes which require that the Mayor, under the aldermanic form of government, submit to the Council, for it's approval or disapproval, the annual municipal budget. The accompanying document represents the culmination of a great deal of work by staff that began in April. In 1992, sweeping changes occurred for the Citizens of Fayetteville; in May they voted to change their form of municipal government from the City Manager to Aldermanic form of government; in November the Citizens voted each of us into office. The change in the form of government affords us the opportunity to strike a new beginning. A few of the more significant accomplishments for the City during 1992 include: initiation of construction of the north portion of the 36"/42" water line from Beaver Water District, completion of the purchase of additional park land for Walker Park expansion, completion of the Public, Education, and Government (PEG) Access Building renovation project, completion of the Walton Arts Center, completion of parking lot improvements in the Dckson Street arca, completion of the library expansion project, continuation of the expansion of the flight safety zone at the Airport, initiation of the Police/ Courts/ Communications Building Renovation Project. and creation of an Animal Shelter Park. Additionally, a brief review of the past year discloses some significant legal events that impact service delivery to the Citizens of Fayetteville. The most notable event for the City in 1992 was receiving a favorable ruling from the t1.S. Supreme Court on the Illinois River case which allows the City to continue discharging a split - flow effluent into the Illinois River and while River; the City also received favorable rulings in Chancery Court on both the incinerator case and the one cent city sales tax case. The incinerator and sales tax cases are currently on appeal to the Arkansas Supreme Court. The City anticipates favorable rulings in both cases. A decision in the sales tax case is expected to be rendered in early 1993. The City's capital improvement efforts have been seriously curtailed. as a result of this lawsuit, since 1991. The adoption of the annual budget is one of the most important duties you are asked to perforin each year. The 1993 Budget document contains funding requests for operations and capital improvements for the (':tv that total approx:nlately $6X mullion dollars. l:xpendit.ires by major operating and capital lands are listed helow: 113 WEST MOUNTAIN 72701 501-521-7700 FAX 501-575-8257 1 General Fund Street Fund City Advertising and Promotion _ Community.Development. Drug Enforcement -- Capital Improvements Construction Fund Sales Tax Construction Fund • Water and Sewer Fund (Operations) Water and Sewer Fund (Capital) Solid Waste Fund Airport Fund (Operations) Airport Fund (Capital) Shop Fund (Operations) Shop Fund (Capital) Management Fund $ 13.0 million 1.9 million .7 million 1.0 million .3 million 11.8 million 6.6 million 17.5 million 5.2 million 3.2 million 1.1 million 1.1 million 1.9 million 1.1 million 1.4 million The General Fund and Street Fund each have a budgeted growth in undesignated fund balance in the 1993 Budget and Work Program. The Capital Improvements Construction Fund and Sales Tax Construction Fund each have a planned use of fund balance to continue implementation of planned capital improvements. The Airport Fund, Water and Sewer Fund, Solid Waste Fund, and Shop Fund all have a surplus before depreciation. The City's financial structure consists of twenty - four (24) separate budgeted funds that account for all the financial activity in which the City is involved. Based on reactions from Citizens and the previous City Board, City staff has continued to seek improved methods of presenting the budget document in an easily understandable yet concise manner. The 1993 budget reflects a significant step in that direction. The document has been tremendously shortened, but still contains sufficient information to gain a sound grasp of the City's fiscal operational plan. City staff has taken many innovative and progressive steps to accomplish this task. The feedback from the City Council and the Citizens of Fayetteville will continue to serve as a barometer for future enhancements. Significant items contained in the .1993 Budget include: • T. • funding four additional police personnel and three additional firefighters; • continued development of the parks system master plan; • beginning the planned update -for water and sewer rates; • funding to perform a`backflow prevention study as mandated by the EPA; • continuation of the 36"/42" water line and attendant storage tanks; • completion of the Dickson Street overlay project; • continuation of a sidewalk construction/reconstruction program; • continuation of the bikeways construction program; ■ continuation of the street construction/reconstruction program; ■ continuation of the water and sewer rehabilitation program; • initiation of a geographic information system; and • continued efforts to develop a curbside recycling program. Dunng 1992, thc City issued $10 million in Water and Sewer System Refunding and Improvement Revenue bonds to enable the 36"/42" water line construction project to proceed. The original funds for the construction of the water line are included in the 1990 Capital Improvement bond issue and are not available for use as a result of the sales tax lawsuit. The 1992 Water & Sewer bonds also allowed the City to re -finance an outstanding water and sewer bond issue, at a lower interest rate, which will result in savings of interest expense during the remaining life of the bonds. It is my belief that this City has been involved in far too much litigation and adversity during recent years. The cases noted above, among others, have resulted in unfortunate uses of taxpayer dollars and in thc delay of much needed infrastructure improvements to our City. During my tenure as Mayor, 1 will work wholeheartedly with the City Council and City Attorney to avoid similar events in the future, which have been so harmful in the past. The City of Fayetteville has an enormous wealth of resources and possibilities, but these can only be realized if all of the Citizens channel thetr efforts and priorities in a direction that is for the good of the entire community. My involvement in the development of the 1993 Budget has been minimal due to the change in the form of government and by thc subsequent time constraints placed on me by State statute that requires presentation of this document to the City Council by December 1. Due to this situation we jointly reviewed the 1993 Budget in two budget retreats during December. My decision to actively participate in reviewing the budget with you does not, however, imply that there is a lack of confidence in the City staff's capability to compile a well -thought and meaningful budget document. City staff should be commended for their admirable work in continuing to prepare this Budget for your consideration, in the face of so much adversity during the past six months. They have done a splendid job of preparing a balanced budget that advances the City in a positive and progressive direction. In closing, I look forward to working with the City Council and the Citizens of Fayetteville in continuing to make 1993 a banner year for the City of Fayetteville. I can assure you that my responsibilities for development and implementation of future budgets and City programs will have my devoted attention. Rest assured that City staff, under my direction, will work to further enhance the services offered to the Citizens of Fayetteville and to provide these services in the most cost effective manner possible. iRes t(ully Submitted, red Hanna, Mayor 3 FAYETTEVI LLE THE CITY OF FAYETTEVILLE, ARKANSAS Fayetteville City Council City of Fayetteville, Arkansas Fayetteville, Arkansas Members of City Council: February 10, 1993 Addendum Subsequent to the Fayetteville City Council approving the 1993 Budget and Work Program and prior to final publication of the budget document the City was notified by the Arkansas Supreme Court that the appeal in the Sales Tax Lawsuit was reversed and remanded to the Washington County Chancery Court. The Supreme Court Justices voted 4-3 that the sales tax supporting the 1990 Sales Tax Bond Issue was an illegal exaction of the taxpayers. The City has exercised it's option to request a re -hearing of the ruling by the Supreme Court and we are waiting the determination of our request. The City will continue to provide for currently obligated contracts that were originally funded in either the Capital Improvements Construction Fund or Sales Tax Construction Fund. Additionally, the City will be exploring additional funding options to facilitate the progression of our capital improvement program. Initially, all capital improvement projects are temporarily on hold. Each project that must be initiated or completed in 1993 will be reviewed on an individual basis to determine need, priority, and appropriate funding source.. We (Mayor and City Council) have expressed our intent to continue the City's capital improvement program and have stated that -we intend to re -submit, to the voters of Fayetteville, the one cent sales tax as soon as feasible after any final Supreme Court ruling. This intention was formalized by adoption of City Resolution 21-93 on February 2, 1993. Res.- tfully>Submitted, red Hanna, Mayor 4 113 WEST MOUNTAIN 72701 501-521-7700 FAX 501-575-8257 Community Overview The City of Fayetteville, County Seat of Washington County, is located in the northwest comer of Arkansas, some thirty miles east of the Oklahoma border and fifty miles south of Missouri Sitting near the tallest of the mountains in the Ozark Mountain Range, the City enjoys four distinct and beautiful seasons in a climate that for decades has drawn a wide variety of individuals seeking a special environment to live, work and raise their families. Settled by some of the regions' earliest pioneers in 1828, and achieved town status in 1835. By 1841, Fayetteville was an incorporated city. While Fayetteville played host to both the Confederate and Union Troops during the Civil War, it survived the war to become one of the states most important centers for commerce and learning. Since 1960, Fayetteville has more than doubled in size, growing from a population of 20,274 to a 1990 U.S. Census count of 42,099. Its unemployment rate has lustoncally been low and has fallen to the current level of 3.7% and the per capita income has grown an impressive 75% since 1982. The significant economic growth has been fueled by the phenomenal growth of Wal-Mart, Tyson Foods, J B Hunt Transport, and other locally -based companies. This has :rade Fayetteville known as the business center for the region. Fayetteville has been aggressive m dealing with its growth -- and in anticipating that growth which is to come. A goal of the City's economic development philosophy is to not only encourage and support new business, but also to direct the growth into areas compatible with existing Industry and the City's economic base. In addition, initiatives such as the update of the City's General Land Use : ;an, which is scheduled for completion in 1993, will allow for enhanced capability to meet the future needs of Fayetteville's citizens. Fayetteville is home to the pnncipal campus of the University of Arkansas system, which has contributed to higher education in the area for over a hundred years The University contnbutes a dual role to the economic well-being of the community by drawing new industry to the area due to its vast research resources and by serving a as a labor pool with a wealth of highly educated people. lts programs in teaching, research, and public service are constant stimulants to the educational and cultural advancement of the region Many new industries locate m the area because of the University, and many industries employ the newly graduated students. The University also forms one of the strongest supports of the local economy, with students spending about $25 million per year in local businesses, in addition to the input of the University payroll. The University has also undertaken an enormous capital improvements program that will contribute over $100 million during the next few years through projects such as construction of a new basketball arena, expansion of the University library, and renovation of several dormitories and other campus structures. Another contribution of the University has been the development of the Genesis Program to advise, incubate, and develop new products and businesses, principally ir. "high-tech" disciplines. Many of these remain in Fayetteville fallowing initial development. In a unique joint venture, the City has joined with the University to build and operate a performing arts center complex that will serve the people of the region and the University program alike. The Walton Arts Center was opened in April 1992 and will accommodate three theaters for the performing arts, an art gallery, studios for dance and art, teaching spaces for multi -disciplinary arts and an outdoor pavilion. 5 'Drake Field, Fayetteville's Municipal Airport, serves as the region's principal airport, and economic growth of the area is reflected in the average mcrease of airline boardings from 1981-1991 of over 10% per year On a regional basis, the past year has seen increased discussion concerning the possibility of a regional airport in the northwest Arkansas area. A regional authority was formed in 1990, of which Fayetteville is a member, with the expressed purpose of exploring the feasibility of locating and funding such a facility. The most recent activity has involved site selection, impact studies, and opportunities for citizen input. Based on a consensus of the citizen's of northwest Arkansas a determination will be made at an unspecified date as to whether a regional airport facility will be constructed and the level and types of service to be offered. It is uncertain whether the construction of such a facility would significantly alter the operations at Drake Field, but alternative uses will be explored in the meantime should the airport operations be affected. The planned completion of an interstate grade highway, south to Interstate 40 at Alma and north to Interstate 70 at Kansas City and the completion of the four lane upgrade of Highway 412 from Interstate 44 in Tulsa, which will be completed in 1995, puts the City squarely m the fast lane for continued growth into the 21st Century. Other available transportation in the area includes rail freight service through Arkansas & Missouri Railroad, daily bus service through Jefferson Bus Lines, and a number of excellent motor freight carriers. The City is served by two outstanding medical facilities in Washington Regional Medical Center and the Veteran's Administration Hospital. The community is also the home of the North Hills Medical Park which is a prototype complex that provides extensive medical, dental, and surgical needs. In August 1991, the Northwest Arkansas Rehabilitation Hospital was opened to serve post-operative and corrective rehabilitation needs on both an in-patient and out-patient basis. In addition, the Charter Vista Hospital, a pnvate facility, is located in Fayetteville and serves the community by providing for treatment of mental disorders and chemical dependencies. The Fayetteville Pubhc School system includes eight elementary schools, two junior highs, and two high schools There are also pnvate and parochial schools, and facilities for developmentally disabled children. Realizing that the area's natural beauty is an asset which encourages both growth and tounsm, preservation of a clean environment is a factor in the City's operations and decision- making. The Parks & Recreation Division tends not only to the numerous parks and ballfields, but also has in its care large recreational areas and lakes for sports enthusiasts of all kinds and ages. A new tertiary wastewater treatment system went online m 1988 that will provide for the community's projected needs for the next 20 years. Another achievement m solid waste management is with the implementation of the City's waste reduction and recycling program which is responsible for reducing the volume and nature of material requiring transport and disposal. In summary, the City of Fayetteville, Arkansas, is a collective association of nearly 45,000 people in a region with a population base of over 250,000 who believe that the quality of life is heavily influenced by the quality of the community Perhaps that is why Fayetteville was chosen as one of the ten best places to live in America by Money Magazine in 1991. 6 City of Fayetteville, Arkansas The Budget Document The City of Fayetteville's budget document is a six part presentation consisting of the following sections: Budget Message Budget Process and Policies Fund Summaries Department Summaries Capital Improvements Program Appendix Budget Message This section begins with a brief review setting forth the budgetary plan and objectives for 1993. The budget message section provides the reader with the synopsis of the work program for the City m the next year In addition, this section provides a brief history of the City of Fayetteville, general information about the community, and a guide to the budget document. Budget Process and Policies The budget process and policies section provides the reader with the procedural insight into the preparation of Proposed 1993 Budget and Work Program and proposed financial policies for the City. These policies include: Budget Adjustment Policy, Revenue Policy, Expenditures Policy, Debt Policy, Reserve Policy, Investment and Cash Management Policy, Capital Improvement Policy, and Financial Reporting Policy. Fund Summaries The Fund Summary section contains information concerning fund types and fund position by fund type that depicts the financial activity projected for the City during the coming year Department Summaries This section consists of Hz six major departments: General Govemment, Administrative Services. Police, Fire, Planning Management, and Public Works The Department Summary section contains the following: (1) Department Overview - This section provides a brief summary of the respective department budgets. 7 (2) Program Expenditure Summaries - This section reflects expenditures by category for each program in a Department for four periods: Actual 1991, Budgeted 1992, Estimated 1992, and, Budget 1993. (3) Personnel Summaries - This section provides a comparison of staffing levels during the past three years, by department. 4) Program Information: a) Program Descnption b) Program Analysis c) Staffing Totals d) Categoncal Expenditures Totals e) Revenue Sources 0 Program Objectives g) Performance Measures (if applicable) Capital Improvement Program The City. of Fayetteville compiles a separate 5 -Year Capital Improvements Program (C.I.P.) document, which is updated annually. The capital improvement program section of the Budget contains summary schedules from the City's 1993-1997 C.I.P. document and a overview of the C.I.P. process. Information in this section relates to capital projects planned during the current five year penod. Appendix The Appendix contains a City organization chart, a list of elected City officials, City administrative officials, City management staff, a personnel variation summary for all City departments, a schedule of the major operating revenues for the City, a synopsis of the City's projected debt position as of December 31, 1992, general information concerning general obhgation and revenue bond debt, glossary, and, an index. The glossary provides definitions of frequently used budgeting and accounting terms. The index cross-references the budget document by division or activity/program. 8 CITY of FAYETTEVILLE, ARKANSAS THE BUDGET PROCESS The annual budget is a fiscal plan which presents the services which will be provided to the community and the funds needed to perform these services. This Budget is presented on a GAAP basis which allows for fair presentation of the financial position for the City of Fayetteville. The type of service and the level of service is defined by the use of program objectives, which are further defined by performance measures. The Mayor is responsible for formulating the fiscal plan and presenting it to the City Council for approval and adoption. The key steps and dates in this process for the 1993 Budget And Work Program are described below: 1. Budget Preparation Package, May 1992 The budget preparation package was distributed to all Department Directors and Division Heads. This represents the fourth year of utilizing the program performance budget process. The package included a detailed manual with the budget preparation calendar examples of all forms and instructions for completing these forms to request funding for 1993. In addition, target budgets were set for each fund and/or program. The target budget excluded capital requests and new personnel requests. (These items are considered separately). Two training sessions were conducted by the Budget staff in May to cover instructions for the completion of appropriate forms for the budget and capital improvements program and to review the budget calendar. 2. Capital Requests & New Personnel Requests Forms, June 1992 These forms were prioritized through a senes of Department Director and Budget staff meetings. Approval of the requests were based on a review of pnontized lists by Department Directors and Budget staff to see if onginal cost and continuing cost were within the available funding range. All capital items with a cost that exceeds 55.000 appear in the 5 -Year Capital Improvements Program. 3. Public Hearing (June 1992) The Budget and Research staff coordinated a public forum to obtain input form Citizens on the revel of city services. 4. Budget Workpapers Submitted by Division Heads, August 1992 The Department Directors returned the forms requesting 1993 funding to the budget office The budget office then verified that the forms were submitted correctly. Preliminary Department Requested Budgets were compiled and reviewed by the Departments Directors and Budget staff. 5. Public Hearing (August 1992) The Budget and Research staff coordinated a public forum to obtain input form Citizens on the City's capital improvement program. 9 6. Analysis of Each Proposed Program Budget, September 1992 During this period, meetings were conducted with all Department Directors. At these meetings, the submitted program budgets were evaluated in their entirety and additions and cuts were made to balance the funds with the service requirements. The 1993 Proposed Budget and Work Program was the result of this process. 7. Consideration and Approval of the Budget, November 1992 - December 1993 The proposed budget was presented to the Mayor after he took office. The Mayor scheduled Council Retreats in November and December at which time City Council was given the opportunity to review, ask questions, and make revisions to the proposed budget. The Budget was adopted at the December 15, 1992 Council meeting. 8. Implementing the 1993 Budget, January/February 1993 Workpapers are created and distributed to allow each division head to split their budget into the projected funding level needed for each month. These workpapers are collected and input into the computer system to assist in the control of the adopted budget. The public heanngs throughout the budget process are considered to be an essential part of the budget process as they are designed to solicit feedback from the public on city operations and services. In accord with continuing efforts to apprise the public of City activities, the Proposed and Adopted 1993 Budgets & Work Programs were made available for review by all interested persons at the Fayetteville Public Library and the City Clerk's Office. Pubhc notification of this information is made in a local newspaper. As always, the public is invited to attend all meetings, retreats, and hearings regarding consideration of the budget. 10 I May 7e Budget Preparation Cnoirlbinad 1993 Annual Budget is I MayzB7u_211 Belelglwnp • June30 Public Keyingan Sr1ppdg p Budget and Enhancements h .ialy 17 Denys Had* S.401- Pt mBt0 iP Dormant O'cars Flow Chart Dnwtr Hans No Moho Rawson August 7 Dopetlmom D •.cors Sw1na BuWpetew BuOp 1 BSB b• Pawn. A.gw ih Public Hrnkp an To Caput nrotowonb Poo nm stogie Bre M+aw Submitted Badpab BaPearbet 11 Badpal BrJ Ptadrna SAO Repuart To Daartmnt Cartrn Rawaor Mod* By APa•apar Parsons' Dope mount Dllauten Warr! Any Budget 4nwano' tai Octotr Dopu'monl:swam Prawn Budget to the Bud Ste 4 Narnmpr SIC ampere Almta Butlpat Peened to tet Mora 4 Moyer Preen Budget to Cay CeuncJI joepootnetuncn 11 CITY of FAYETTEVILLE, ARKANSAS BUDGET ORGANIZATIONAL STRUCTURE • In governmental accounting, a fund is a fiscal and accounting entity with a self -balancing set of accounts, created and maintained for a particular purpose and having transactions subject to legal or administrative restrictions. A separate budget is provided for each fund. DEPARTMENT Departments are the major organizational sub -divisions. They have a broad overall purpose. The City of Fayetteville is organized into six departments: General Government, Administrative Services, Police, Fire, Planning Management, and Public Works. Each Department, except General Government, has a director who reports to the Mayor. DIVISION Divisions are the major operational areas of the City. Each Division has been assigned to one of the Departments listed above according to the type of activity it performs. For example, the Solid Waste Division is part of the Public Works Department. PROGRAM Programs are the operating units within the Division. Each program. represents a specific type of activity within its Division aimed at providing a service for which the City is responsible. For example, the Solid Waste Division contains the following programs: Administration, Commercial Collection, Residential Collection, Recycling and Composting. Each Division Head has developed a list of objectives and program performance measures for each program which are utilized by management in evaluating the overall effectiveness of individual programs. CATEGORY Within each program, each expenditure item is grouped into a category of related expenditures. The budget for each program is listed by categorical total. Examples of a category include: Personnel Services, Materials & Supplies, Services and Charges, Maintenance, Depreciation, and Capital 12 CITY OF FAYETTEVILLE, ARKANSAS ADMINISTRATIVE PROCEDURES TO ADJUST THE APPROVED BUDGET BR -1.0 PURPOSE: The procedures outlined in this section define, standardize and set forth responsibilities for budget adjustments. BR -1.1 DEFL\TTION AND EXPLANATION: A budget adjustment is a change in the authonzed budget, either revenue or expense. A budget adjustment transfers increases one expenditure item or capital project by a specific dollar amount and decreases the budget for one expenditure item or capital project. An expenditure item or capital project can also be offset by a revenue increase or use of fund balance. Since a budget adjustment is a change in allocated funds, great care must be taken and only changes for good reason will be accepted. All Department Directors & Division Heads are mandated to stay within each category for each operational program budget as adopted and to stay within the total budget for each capital project. Neither the Accounting or Purchasing Offices will process payments or purchase orders, which will cause a category or capital project to be over the annual budget amount. Each expenditure item, for each operational program, is grouped into a category (i.e. Personnel Services. Matenals & Supplies. Services & Charges, Maintenance, Capital, etc.). Budget adjustments will only be required in the following instances: 1) When the budgeted amount per category is exceeded (an offsetting adjustment must be made from another category, program, or fund balance). 2) When the budgeted amount per opjayonal proeram is exceeded (an offsetting adjustment must be made from another operational program or fund balance). 3) When the budgeted amount for a capital project is exceeded (an offsetting adjustment must be made from: another capital project, another program. or fund balance). Any changes in the personnel services category must meet the City's policy for raises. promotion, and staff increases. BR -1.2 TYPES OF BUDGET ADJUSTMENTS There are basically six (6) types of budget adjustments. These are: A. Adjustments between major categories in an operational program, between capital projects, or to an operational program, up to SLSX2 may be approved by the Budget Coordinator, 13 B. Adjustments between major categories in an operational program or between capital projects, for $2,501 to $15.000, may be approved by the Administrative Services Director; C. Adjustments to the operational program which total up to 10% of the total operational program budget or $20,000, whichever is less may be approved by the Mayor; D. Adjustments to a capital project which total up to 10% of the total capital project or $20,000, whichever is less, may be approved by the Mayor, E. Adjustments which exceed the Mayor's authority may be approved by City Council; F. Administrative budget adjustments may be approved by the Mayor. Administrative budget adjustments generally do not have any impact on fund balance. Admuustratrve budget adjustments are generally required because additional revenue received in one fund. Example: HMR taxes received by the Advertising and Promotion (A&P) Fund are required, by debt instrument, to be transferred to the Continuing Education Center (CEC) Fund. HMR tax revenue in excess of budgeted will create an overbudget for the transfer category in the A&P Fund. Adjustments to an expenditure item, capital project, or operational program are considered to be cumulative. Therefore, a single adjustment may meet the criteria for one type of adjustment, but fall into another type due to prior adjustments to the same expenditure category, capital project, or operational program. The Budget Coordinator shall have the authority to make the final determination as to which type of adjustment is necessary. Significant adjustments to an operational program's total budget must be justified by modifying program objectives and performance measures. These items must be submitted with the budget adjustment and approved simultaneously. BR -1.3 RESPONSIBILITIES AND PROCEDURES It is the responsibility of each Department Director or Division Head to prepare his/her adjustment whenever required, obtain all the required signatures, and return the form to the Budget Coordinator. Following review by the Budget Coordinator, the adjustment is either processed through the Budget & Research Office, or returned to the Division Head requesting the adjustment for placement on a City Council agenda. It is the responsibility of the Mayor to present these the adjustments to the City Council and advise them of any consequences. 14 CITY OF FAYETTEVILLE, ARKANSAS FINANCIAL POLICIES The purpose of this section is to present the policies that the City follows in managing its financial and budgetary affairs. These are general statements of policies which represent long-standing principles. traditions, and practices that have guided the City in maintaining financial stability. REVENUE POLICY • The City will strive to maintain a broad and diversified revenue base that will equitably distribute the burden of supporting City services and will protect the City from short- term fluctations in any one revenue source. • The City will actively support economic and industrial development recruitment and retention efforts to provide for expansion of the revenue base. • The City will maintain timely collection systems and implement necessary enforcement strategies to collect revenues from available sources. • The City will establish user fees and charges for services, when feasible, at levels related to the cost of providing the services. The City will review the fees and charges on a periodic basis to determine modifications needed to keep pace with the cost of providing the services. • The City will establish, when feasible. self- supporting enterprise funds and internal service funds in which a relationship between revenues and expenditures clearly exists. • The City will project revenues on a conservative basis so that actual revenues will consistently meet or exceed budgeted revenues. • The City will maintain a budgetary control system and will prepare reports which compare actual revenues to budgeted amounts. • The City will limit the designation of General Fund revenues for specified purposes to maximize flexibility in budgeting and revenue utilization. • The City will review annually and revise, where necessary, its cost allocation formula. EXPENDITURE POLICY • Basic and essential services provided by the City will receive fust priority for funding. • The City will establish performance measurements for all program areas, when feasible. These measures will reflect the demand, workload capability, and projected outcomes for the program to accomplish its objectives • The City will adopt a balanced budget. by fund. for all funds maintained by the City, in which total anticipated revenues must equal or exceed the budgeted expenditures for each fund. However, if this cannot be attained, the City will utilize unallocated fund reserves. which have been carried forward from prior years • The City will maintain a budgetary control system to ensure adherence to the adopted budget and will prepare reports which compare actual expenditures to budgeted amounts. 15 • The City will refrain from budgeting non- recurring or one-time revenue for ongoing expenses. • The City will provide access to medical, dental, life, and long-term disability insurance for its employees. The cost for these benefits will be a shared responsibility between the City and its employees. • The City will provide access to appropriate retirement plans for its employees. The City will make contributions for eligible employees at the percentage defined for each of the respective retirment plans. DEBT POLICY • The City will maintain a policy of full disclosure on financial reports and bond prospectus. • The City will maintain communications with bond rating agencies and continue to strive for improvements in the City's bond rating. • The City will pay for all capital projects and capital improvements on a pay-as-you-go basis using current revenues whenever possible. If a project or improvement cannot be financed with current revenues, long-term debt will be recommended. • The City will refrain from issuing Tong -term debt for a period in excess of the expected useful life of the capital project. • The City will use special assessment, revenue, or other self-supporting bonds instead of general obligation bonds, when feasible. • The City will seek refinancing of outstanding debt if it is determined that the City will benefit by reduced interest expense over the remaining life of the bonds. • The City will require that total annual payments for debt service not exceed 25% of total operating revenues. RESERVE POLICY • The City will maintain a minimum reserve, in Undesignated Fund Balance, of 10% of current year operating expenditures for the General Fund and the Street Fund. If existing reserves exceed the required level, such funds may be used to provide for non-recurring expenditures. The City will use monies in the 10% reserve only in times of emergency or fiscal and economic hardship. • The City will attempt to maintain a cash and investments balance of not less than 10% of current year operating expenditures for all Enterprise Funds. • The City will maintain a Shop Fund reserve necessary to fund the replacement and expansion of the City's vehicles and equipment. The replacement of equipment will be based on the adopted equipment replacement schedule, which is updated annually. INVESTMENT & CASH MANAGEMENT POLICY • The City will deposit all receipts on a timely basis. • The City will strive to maximize the return on its investment portfolio without jeopardizing principal amounts. • The City will limit its investments to the types of securites provided for by Arkansas statutes. • The City will diversit_ its investments by maturity date to protect against market fluctations. • The City will purchase securities from qualified institutions based on competitive bids in an effort to obtain the highest available rates. The City will seek bids on a weekly basis for investment of available cash. 16 • 1 1 1 1 1 r 1 1 r 1 CAPITAL IMPROVEMENT POLICY • The City will prepare annually and update a five-year Capital Improvements Program (C.1.P.) which will provide for the orderly maintenance, replacement, and expansion of capital assets. • The C.I.P. will identify long-range capital projects and capital improvements of all types which will be coordinated with the annual operating budget to maintain full utilization of available revenue sources. • When preparing the C.I.P. the City will seek to identify all viable capital projects and capital improvements required during the subsequent five year period. These projects and improvements will be prioritized by year and by funding source. Every attempt wi I be made to match projects and improvements with available funding sources. Future operating costs associated with a project or an improvement will also be given consideration in the establishment of priorities. • The City will seek Federal. State, and other funding to assist in financing capital projects and capital improvements. • The City will incorporate the reasonable findings and recommendaticns of other the City's Board's, Commissions, Committees. and Citizen task forces. as they relate to capital projects and improvements • The City will seek input from the public by holding public hearings in relation to the establishment of projects and project priorities. FINANCIAL REPORTING POLICY • The City's accounting system will maintain records in accordance with accounting standards and principles outlined by the Governmental Accounting Standards Board (GASB), Financial Accounting Standards Board (FASB), and the State of Arkansas. • The City will employ an independent accounting firm to perform an annual audit of the City's finances, and make the annual audit available to all required and interested parties The audit shall be completed and submitted to the State of Arkansas within 210 days of the close of the fiscal year. • The City will produce monthly and quarterly financial statements reporting the current periods activity for all funds maintained by the City. • The City will maintain a strong internal audit function which will be charged with adopting and routinely monitoring internal controls of the City. • The City will prepare an annual budget document that provides a basic understanding of the City's planned financial operations for the coming fiscal year. Copies of the proposed and final budget will be made available to ail interested parties and opportunities will be provided for citizen input prior to final decisions on the budget. • The City will seek annually renewal of the Government Finance Officers Association's (GFOA) Certificate of Achievement for Excellence in Financial Reporting and the Distinguished Budget Presentation Award 17 Central Fund I -Genera City of Fayetteville, Arkansas Chart of Fund Types CO Fund Structure J ��erl2Gnla ENEEm De": Senxc 'ThecaI Capital Ptofat Funds I - %tree: — Sa es Tax Arid - Adsrt.s rg S !'r -r.inon - Arts ('.,t•er Rood - t ,:. Street 'irking - Drug Law ; r.f.ircexen: - Communm Devein,iert - Aging TransxxtaIr•n - Ars cri:a Profat - Replacement - Capital Imor^.emer: �.'r.s• -Sales Tax (: r.strucn: n Combined Statement of Budgeted Revenues Expenditures and Changes in Fund Balances All Governmental Fund Types As noted by the chart above, the City ut'lizes all four (4) major governmental fund types: General. Spe. Ial Revenue. Debt Service. and Capital P-oject. As a note of explanation for the following combined statements. the revenues are lasted by major source and the expenditures are listed by major department or service. The operating transfers are listed both m and (out). 18 City of Fayetteville, Arkansas Combined Statement of Budgeted Revenues. Expenditures, and Changes in Fund Balances All Governmental Fund Types For the Year Ended December 31, 1993 Special General Revenue Revenues: Properly Taxes $ 1,109,461 $ Sales Taxes 4,797960 Hotel, Motel, Restaurant Taxes Franchise Taxes Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Investment Earnings Other Total Revenues Expenditures: General Government Administrative Services Police Fire Public Works Street Off Street Parking City Advertising & Promotion Community Development Aging Transportation Drug Enforcement Capital Outlay Debt Service Total Expenditures 3344,929 297,908 951382 590,749 524,485 181,400 31,100 11,829374 2340,896 2,132,128 3311327 2269,463 1.411349 11.465 363 Excess of revenues over (under) expenditures 364.011 Other financing sources (uses): Operating transfers in Operating transfers out 1269,970 (1.647.523) Net Other Financing (377,553) Excess of revenues over (under) expenditures and other financing sources (uses) (13,542) Estimated Fund Balance — Beginning of Year 4,558,062 Fund Batance — End of Year $ 4544,520 5 Debt Service Capital Projects Total 282,1215 S $ 1391582 3300.000 2,760,866 10.858.826 656,474 656.474 3344,929 297.908 2,940,477 3,891,859 166,068 756.817 524,485 49,630 225,097 988,740 1.444,867 31,100 4994,770 3525.097 3,749,606 23.198,847 1,914,486 467,079 701,800 1.032,623 4.000 306,657 4.426.645 (331.875) 626,431 (704.426) (77995) (409,870) 877,915 468.045 $ 19 2340.896 2.132.128 33H327 269.463 1.411.549 1.914.486 467.079 701,800 1,032,623 4.000 306.657 18.454329 18.454329 3,640,698 3,640,698 3,640,698 18.454329 37.987.035 (115,601) (14,704.723) (14.788.188) 944,592 261539 3.102332 (794,191) (3.146.140) 150.401 261539 34,800 (14,443,184) 4,773214 30,107385 4,808.014 S 15,6642015 (43.608) (14,831,796) 40316576 25.484.780 Ln:erprse Funds Propr.rtan Funds -A.rpor: - ('..Homing Ed Center -'ndastral Park u a.ee & Sewer - Slid waste City of Fayetteville, Arkansas Chart of Fund Types CAN Fund Structure Iris na Sensor' ands - M .ngemen: Services - h:r idac Ian -Eras : SL51 F Lnas - P Pewon - = re Pension - Nan :uage Resuemeni - W a.; r Arts Cer ter Entity.; .Agency Funds - Recurred ('!nA - Pavrn.1 - MLrkipii Cour. Combined Statement of Budgeted Revenues Expenses and Changes in. Fund Balance A;1 Proprietary Fund Types and Similar Trust Funds As noted by the chart above. the City utilizes the Enterprise and Internal Service funds ir. the Propnetary fund type, and the Trust and Agency funds in :he Fiduciary fur.d type. In reference to the following combined statements. the revenues are listed by ma;or source and the expenses are listed by major department or service. Also showr. are depreciation, nonoperat:ng revenue and (expenses). transfers in and (out), and net income. 20