HomeMy WebLinkAbout196-03 RESOLUTION• •
RESOLUTION NO, 196-03
A RESOLUTION ADOPTING THE PROPOSED 2004 ANNUAL
BUDGET AND WORK PROGRAM AS AMENDED AND THE
2004-2008 CAPITAL IMPROVEMENT PROGRAM
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas hereby
adopts the Proposed 2004 Annual Budget and Work Program as amended, and the 2004-
2008 Capital Improvement Program, which is attached as Exhibit "A".
PASSED and APPROVED this the 16th day of December, 2003.
SONDRA SMITH, City Clerk
APPROVED:
By
DAN COODY, Ma
City of Fayettevill.Arkansas
- Budget Amendment #3
•
100% Payplan
General
Fund Funding Source 100% Merit Employees
1010 General
1010P General - Police
1010F General - Fire
49,990
49,990
Total
32,471 82 461
32 471 82,461
2100 Street 7,177 6,256 13,433
2180 Community Development 350 176 526
2250 Parks Development 3,876 673 4,549
2930 Drug Law Enforcement 361 361
5400 W&S - Business Office 5,068 4,996 10,064
W&S - Meter 2,535 2,498 5,033
W&S - Maintenance 12,671 12,491 25,162
5500 Solid Waste 8,037 9,733 17,770
5550 Airport 1,035 895 1,930
9700 Shop 2,263 1,585 3,848
93,363
71,774 165,137
Fund - 1010
Beginning Fund Balance
Resources
Revenues:
Property Tax
Sales Tax - County
Alcoholic Beverage Taxes
Franchise Fees
Licenses & Permits
Intergovernmental
Charges for Services
Fines & Forfeitures
Investment Earnings
Other
Total Revenue
Operating Transfers In:
Off Street Parking
Community Development Block Grant
Sales Tax - City
Total Transfers In
Total Resources
Uses
Expenditures:
General Government
Cost Reimbursements
Community Planning & Engineering Services
Operations
Finance & Internal Services
Police
Fire
Total Expenditures
Operating Transfers Out:
Arts Center Bond Fund
Drug Law Enforcement Fund
Total Operating Transfers Out
Total Uses
Net Resources (Uses)
Ending Fund Balance
City of Fayetteville, Arkansas
General Fund
Actual
2002
$ 9,697,723 $
0
8,617,527
316,162
3.057.981
842,906
1,775,444
1,184,515
1253,452
377.598
886,754
18,312,339
37.561
23.540
2.957,774
3.018,875
21.331,214
3,949,126
(2.541,468)
2,245,622
2.197,702
3,162,015
7,953,223
4.979,362
21,945,582
340,289
48,575
388,864
22,334,446
(1.003,232)
$ 8,694,491 $
Reserved for Loans to Other Funds $
Ending Undesignated Fund Balance
Ending Fund Balance $
60,000 $
8,634,491
8,694,491 $
Budgeted
2003
8,694,491
0
8.857,000
290,000
3,619,900
969,000
1,450,062
1,095,700
1,405,000
214,000
1,724,730
19 6'S 392
•
Estimated
2003
Budgeted
2004
$ 8,694,491 $ 6,405.999 $
0
8,863,000
327.000
3.393,181
969,000
1,450,062
1.095.700
1,405,000
214,000
1.724,730
19.441.673
43,000 43,000
0
4.557,000
4.600,000
655,000
9,005,000
335,000
3,478,000
1,014,000
1,467,000
1,130.100
1,440.000
220,000
134,000
18,878,100
44,000
0 0
4,557,000
4,600.000
24,225,392 24,041,673
Payrange Adjustments (100%
Payrangc Adjustments (100%
Payrange Adjustments (100%
6.090,944 5,964,
(2.235.786)
2.433.342
2,601,161
3,078,942
9,053,707
5,459,130
26,481,440
407,115
69.886
477,001
26,958.441
(2,733,049)
5,961,442 $
60,000 $
5,901,442
5,961,442 $
6,568,000
6.612,000
Amended
Budgeted
2004
6,405,999
0
9,005,000
335,000
3,478,000
1,014,000
1,758,000
1,130.100
1,440,000
220,000
134,000
18 514 100
44.000
0
6,568.000
6,612,000
25,490,100 25.126.100
Merit) 49,990
General Payplan) 32,471
Police Payplan) 0
318 4,570,450 4,581,750
(1 856.500) (1,856.500)
2,311,879 2,311,379
2,215,422 2,215,422
3,164,994 3,164,994
9,304,783 9,303,783
5,594.539 5,584,739
25.305.567 25.388,028
(2 235 786)
2,269.125
2.459.376
2,999,507
9,015,826
5,380.798
25,853,164
407.115
69.886
477,001
26,330,165
(2,288,492)
6,405,999 $
405,735
85,000
490,735
25,796,302
(306,202)
6,099,797 $
60.000 $ 60,000 $
6 345 999 6,039,797
405.735
85.000
490,735
25,878,763
(752,663)
5,653,336
60,000
5,593.336
6.405,999 $ 6,099,797 $ 5,653,336
NAME OF FILE:
CROSS REFERENCE:
Item #
Date
Resolution No. 196-03
Docu
NOTES:
1
11.6.03
memo to mayor & city council
copy of coversheet of Proposed Annual Budget
and 2004-2008 Capital Improvements Program
draft resolution
staff review form
2
1.22.04
email from Glynis Nelson
NOTES:
FAYETTOILLE
THE OT' OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
•
,20s
/2//4/03
194.
2CVauk;
t 4c4 vK g-oy/yl
TO: Mayor Coody and City Council
THRU: Stephen Davis, Finance & Internal Services Directoy
FROM: Kevin Springer, Budget Manager 24/ / vv
DATE• November 6, 2003
SUBJECT: Proposed 2004 Annual Budget &
2004-2008 Capital Improvements Program
Recommendation:
Consider the Proposed 2004 Annual Budget & 2004-2008 Capital Improvements Program for
adoption by the December 18, 2003 City Council meeting.
Discussion:
The Proposed 2004 Annual Budget & 2004-2008 Capital Improvements Program documents were
distributed to City Council on Friday, October 31 for consideration.
A brief overview of the proposed 2004 Annual Budget and 2004-2008 Capital Improvements
Program documents is scheduled for Wednesday, November 12 following the City Council agenda
session that starts at 4:30 PM in room 326. Other meeting dates arc scheduled as follows:
Date
Budget
Meeting
Tuesday, November 12 2003
Budget & Capital Improvements Program Presentation / Zero Based
Budget Presentation by the Parks & Recreation Division, the Fire
Department, and the Police Department (agenda session)
Tuesday, November 18 2003 City Council Meeting
Tuesday, November 25 2003 Budget/CIP Working Session (agenda session)
Tuesday, December 2 2003 City Council Meeting
Tuesday, December 9 2003 Budget/CIP Working Session (agenda session)
Tuesday, December 16 2003 City Council Meeting
If you have any questions concerning the Proposed 2004 Annual Budget or the 2004-2008 CIP,
please feel free to contact either Stephen Davis at 575-8330 or myself at 575-8226. Thank you for
your attention to this matter.
h/eilts /Z//05
/.6/S /Z//t
• •
City of Fayetteville, Arkansas
Proposed Annual Budget
and
2004-2008 Capital
Improvements Program
2004
• •
RESOLUTION NO.
A RESOLUTION ADOPTING THE PROPOSED 2004 ANNUAL
BUDGET & WORK PROGRAM AND THE 2004-2008 CAPITAL
IMPROVEMENT PROGRAM.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas
hereby adopts the Proposed 2004 Annual Budget & Work Program and the 2004-
2008 Capital Improvement Program, attached as Exhibit "A".
PASSED and APPROVED this 18th day of November, 2003!
fop
APPROVED:
By.
\DAN CdODY, Mayo
I-y��Ly
_.JI
By: 4
SOO NDRAJSIIIITHH,,C+ity Clerk
S're REVIEW FORM - FINANCIAL OBLICON
X AGENDA REQUEST
CONTRACT REVIEW
GRANT REVIEW
For the Fayetteville City Council Meeting of:
November 18, 2003
PROM:
Kevin Springer
Budget & Research
Name Division
Finance & Internal Services
Department
ACTION REQUIRED:
Approve a resolution adopting the Proposed 2004 Annual Budget i Work Program and the 2004-
2008 Capital Improvements Program.
COST TO CITY:
Cost of this request Category/Project Budget
Account Number Funds Used to Date
Project Number
Remaining Balance
Program Category / Project Name
Program / Project Category Name
Fund Name
BUDGET REVIEW:
X Budgeted Item
Budget Manager
10-3t 9
Date
Budget Adjustment Attached
CONTRACT/GRANT/LEASE REVIEW:
4tt1sta ?GLAting Manager
�_iPQ Date
Dirt (6110 03
City Atto ey
Date
Internal A
al�
Purchasing Manager
10f31/03
Date
IDI31 )aa
Date
STAPP RECOMMENDATION: Staff recommends approval of the Proposed 2004 Annual Budget & 2004 2008 CIP.
Received in Mayor's Office
Division Head
Department Director
IO
Finance & Internal Services Dir.
Date
Date
11- 3-03
Date
Cross Reference:
Previous Ord/Res#:
Orig. Contract Date.
Orig. Contract Number:
New Item -
Date
Yes No
Clarice Pearman - budget a Page 1
From: Glynis Nelson
To: Clarice Pearman
Date: 1/22104 11:02AM
Subject: budget
Thanks again for the resolution. Also, I wanted to let you know that we will get you a copy of the adopted
budget to go with the resolution as soon as it is ready. We have not yet went to print with it.
Thanks,
Glynis
Glynis Nelson
Budget Analyst
City of Fayetteville
113 W. Mountain
Fayetteville, AR 72701
479-575-8296
gnelson@ci.fayetteville.ar.us
1 City Clerk's Office
Extra Copy
1 L.
1 Teta. /94-03
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•
r MICROFILMED
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City of Fayetteville, Arkansas
1 Annual Budget
1 and
1 Work Program
1
1
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2004
City of Fayetteville, Arkansas
2004 Annual Budget
and
Work Program
City Council and Other Elected Officials
Robert Reynolds, Ward 1 - Position 1
Brenda Thiel, Ward 1 - Position 2
Kyle Cook, Ward 2 - Position 1
Don Marr, Ward 2 - Position 2
Robert Rhoads, Ward 3 - Position 1
Bob Davis, Ward 3 - Position 2
Shirley Lucas, Ward 4 - Position 1
Lioneld Jordan, Ward 4 - Position 2
Kit Williams, City Attorney
Sondra Smith, City Clerk/Treasurer
Rudy Moore, District Judge
Submitted by
Dan Coody, Mayor
Hugh Earnest, Chief Administrator Officer
Ray Boudreaux, Aviation & Economic Development Director
Tim Conklin, Community Planning & Engineering Services Director
Gary Dumas, Operations Director
Stephen Davis, Finance & Internal Services Director
Rick Hoyt, Police Chief
Chris Bosch, Fire Chief
Greg Boettcher, Water & Wastewater Director
Prepared by
Kevin Springer, Budget Manager
Barbara Fell, Senior Research Analyst
Glynis Nelson, Budget Analyst
GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award
PRESENTED TO
City of Fayetteville
Arkansas
For the Fiscal Year Beginning
January 1, 2003
Resident Executive Director
The Government Finance Officers Association of the United States and Canada
(GFOA) presented an award of Distinguished Budget Presentation to the City of
Fayetteville, Arkansas for its annual budget for the fiscal year beginning January
1, 2003.
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 device.
The award is valid for a penod 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.
MISSION STATEMENT
The City of Fayetteville's mission statement is a direct result of a
volunteer team of employees charged with creating a mission statement
that expressed the service core of City operations, reflected our beliefs
concerning City services, and was easy to remember. All City
employees were given an opportunity to provide input for the mission
statement. The mission statement was then adopted by the City Council
and is as follows:
To protect and improve our quality of life by listening to
and serving the people with pride and fairness.
a)
District Judge
District Court
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—Central Dispatch
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City of Fayetteville, Arkansas
Table of Contents
Budget Message
Transmittal Memo from the Mayor to Council I -X
Fayetteville Vision 2020: Guiding Principles XI
Management Agenda - 2004 XII
2003 Goals & Results XIII-XXXIV
Budget Resolution XXXV
Community Overview XXXVI-XXXVIII
Miscellaneous Statistical Data XXXIX-XL
Budget Process and Policies
Budget Process 1-2
Budget Flowchart 3
Financial Policies:
Revenue Policy 4
Expenditure Policy 4-5
Debt Policy 5
Reserve Policy 5
Investment and Cash Management Policy 5-6
Capital Improvement Policy 6
Financial Reporting Policy 6
Administrative Procedures to Adjust the Approved Budget 7-8
Budget Organizational Structure 9
Consolidated Fund — Department — Program Structure 10
Fund Summaries
Chart of Fund Types - Governmental 11
Combined Statement of Fund Position - Governmental (Shown by Department) 12
Chart of Fund Types — Proprietary & Fiduciary 13
Combined Statement of Fund Position - Proprietary & Fiduciary (Shown by Department) 14-15
Sources and Uses of Funds 16
Multi -Year Comparison — Adopted Budget Expenditures 17
Governmental Funds
General Fund:
Sources and Uses of Funds 20
Revenue & Expenditure Summary 21
Expenditure Detail 22-23
Special Revenue Funds
Street Fund:
Sources and Uses of Funds 24
Revenue & Expenditure Summary 25
City Advertising & Promotion Fund:
Revenue & Expenditure Summary 26
Off Street Parking Fund:
Revenue & Expenditure Summary 27
City of Fayetteville, Arkansas
Table of Contents (continued)
Community Development Block Grant Fund:
Revenue & Expenditure Summary 28
Parks Development Fund:
Revenue & Expenditure Summary 29
Impact Fee Fund:
Revenue & Expenditure Summary 30
Drug Law Enforcement Fund:
Revenue & Expenditure Summary 31
Debt Service Funds
Arts Center Bond Fund:
Revenue & Expenditure Summary 32
Wastewater Improvements Sales Tax Bond Fund:
Revenue & Expenditure Summary 33
Capital Projects Funds
Library Construction Fund:
Revenue & Expenditure Summary 34
Replacement & Disaster Recovery Fund:
Revenue & Expenditure Summary 35
Sales Tax Capital Improvements Fund:
Revenue & Expenditure Summary 36
Capital Project Detail 37-38
Wastewater System Improvements Project Fund:
Revenue & Expenditure Summary 39
Enterprise Funds
Water & Sewer Fund:
Sources and Uses of Funds 42
Revenue & Expenditure Summary 43
Solid Waste Fund:
Sources and Uses of Funds 44
Revenue & Expenditure Summary 45
Airport Fund:
Sources and Uses of Funds 46
Revenue & Expenditure Summary 47
Town Center and Parking Facility Fund:
Revenue & Expenditure Summary 48
Continuing Education Center and Parking Facility Fund:
Revenue & Expenditure Summary 49
Trust Funds
Police Pension Fund:
Revenue & Expenditure Summary 50
Fire Pension Fund:
Revenue & Expenditure Summary 51
Municipal Judge Retirement Fund:
Revenue & Expenditure Summary 52
Internal Service Funds
Shop Fund:
Revenue & Expenditure Summary 53
Major Revenue Sources 54-57
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City of Fayetteville, Arkansas
Table of Contents (continued)
General Government:
Organizational Structure 59
Overview 60
Division Expenditure Summary 61-62
Mayor's Administration 64-65
Aviation & Economic Development 66-67
Cable Administration 68-69
70-71
72
73-74
75-76
77
78-79
80-81
82-83
84
Chief Administrative Officer
City Attorney
City Prosecutor
City Clerk/Treasurer
City Council
District Court
Internal Audit
Library
Miscellaneous
Community Planning & Engineering Services:
Organizational Structure 85
Overview 86
Division Expenditure Summary 87
Community Planning & Engineering Services Director 88-89
Building Safety 90-91
Community Resources & Code Compliance 92-93
Engineering 94-95
Engineering Design Services 96-97
Planning 98-99
Public Lands Maintenance 100
Operations:
Organizational Structure 101
Overview 102
Division Expenditure Summary 103
Operations Director 104-105
Parking & Telecommunications 106-107
Parks & Recreation 108-110
Transportation 1 1 1-1 13
Solid Waste & Recycling 114-116
Fleet Operations 117-118
City of Fayetteville, Arkansas
Table of Contents (continued)
Finance & Internal Services.
Organizational Structure 119
Overview 120
Division Expenditure Summary 121
Finance & Internal Services Director 122-123
Accounting & Audit 124-125
Billing and Collections 126-127
Budget & Research 128-129
Building Services 130-131
Human Resources 132-133
Information Technology 134-135
Purchasing 136-137
Police Department:
Organizational Structure 139
Overview 140
Division Expenditure Summary 141
Animal Services 142-143
Central Dispatch 144-145
Police 146-148
Fire Department:
Organizational Structure 149
Overview 150
Division Expenditure Summary 151
Fire 152-154
Water & Wastewater:
Organizational Structure 155
Overview 156
Division Expenditure Summary 157
Water & Wastewater Director 158-159
Meter Operations 160-161
Wastewater Treatment 162
Water & Sewer Maintenance 163-165
Water & Sewer Maintenance - Water Purchased 166
Water & Sewer Maintenance - Capital 167-168
Water & Sewer Maintenance - Debt Service 169
City of Fayetteville, Arkansas
Table of Contents (continued)
Capital and Debt
Capital Improvements Program Introduction 171
Capital Improvement Program Directional Information 172-176
Summary of Project Requests & Project Resources 177
Capital Improvement Projects by Project Area - All Sources 178
Sales Tax Capital Improvements Funding - By Project Category 179
Capital Improvements Program Comprehensive Detail 180-182
2004 Capital Budget 183-185
Debt Position 186
Description of Outstanding Bonds 187-188
Schedule of Bonds Outstanding 189
Debt Service Payment Schedule 190
Legal Debt Margin Computation 191
Debt to Maturity Schedule 192
Appendix
City of Fayetteville Organizational Chart 193
List of Elected Officials, Administrative Officials, & Management Staff 194
Personnel Summary 195
Personnel Variation Summary 196-197
Acronyms 198-199
Glossary 200-205
Index 206-208
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 and Debt
Appendix
Budget Message
This section begins with a brief review setting forth the budgetary plan and objectives, as
proposed by the Mayor, for 2004 The budget message section gives the reader the synopsis of
the work program for the City in the next year and provides a guide to the budget document.
Budget Process and Policies
The budget process and policies section gives the reader the procedural insight into the
preparation of the Proposed 2004 Budget and Work Program and financial policies for the City.
These policies include: Budget Adjustment Policy, Revenue Policy, Expenditure Policy, Debt
Policy, Reserve Policy, Investment and Cash Management Policy, Capital Improvement Policy,
and Financial Reporting Policy.
Fund Summaries
The Fund Summaries section contains information concerning fund types and fund position that
depicts the financial activity projected for the City during the coming year for each fund.
Department Summaries
This section consists of the seven major departments: General Government, Community
Planning & Engineering Services, Operations, Finance & Internal Services, Police, Fire, and
Water & Wastewater. The Department Summaries section contains the following:
(1) Department Overview - This section provides a brief summary of total expenditures and
significant changes for each department.
(2) Division Expenditure Summaries - This section reflects expenditures by program in a
Department for Actual 2002, Budgeted 2003, Estimated 2003, and Budgeted 2004.
Division Summaries - This section provides a comparison of program expenditures and
staffing levels during the past four years for each division.
(3)
Capital and Debt
This section contains: a synopsis of the 2004-2008 Capital Improvements Program and planned
capital expenditures for 2004.
Appendix
The Appendix contains a City organization chart, a list of elected City officials, City
management staff, a personnel variation summary for all City departments, a 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.
(Page Left Blank Intentionally)
a8essaysj la3png
1 FAYETTEVILLE
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' THE CITY OF FAYETTEVILLE, ARKANSAS
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December 17, 2003
Members of the City Council and
Citizens of Fayetteville:
I hereby submit the 2004 Adopted Budget for the City of Fayetteville, Arkansas that was approved,
by City Council, on December 16, 2003. It has been prepared and submitted in accordance with
Arkansas Statutes and City Ordinances, which require that the Mayor, under the aldcrmanic form of
government, submit to the City Council the annual budget for approval This budget allocates
necessary funding for all municipal operations including the 2004 capital projects set forth in the
Adopted 2004-2008 Capital Improvements Program. This adopted budget reflects the discussion and
amendments made by City Council during their review of the 2004 Proposed Budget.
This budget also lists the Fayetteville Vision 2020 Guiding Principles as well as the City of
Fayetteville Goals for 2008. It is important to note that all of the items listed as the Urgent Agenda
for 2003 have been completed or are in progress. The two items that are left for completion are the
Community Park direction and the Hillside Study. Also, it is equally important to note that all of the
Management Agenda 2003 items have been completed or will be resolved by the end of 2003. This
administration is committed to continuing toward the goals we established in our Goals 2008
statement. The staff -developed management agenda for 2004 is listed immediately following the
conclusion of this letter.
2003 - A REVIEW
City operations were improved during the year The most significant change was reorganizing our
departments late in January. Our Street, Sidewalk and Traffic divisions were merged into a
Transportation Division to enhance utilization of manpower and equipment. The results of this
reorganization have been significant. Two examples of the improvement are listed below:
• In the Overlay Program, the City has had a very productive year thus far. This crew also
reaped benefits from the reorganization, as previously experienced employees returned to the
paving program. The goal set for this program was 30% higher than had ever been attempted.
Through December 4, this program had completed 10.4 miles of asphalt overlay of the 13.9
miles projected for this year's program. The total for last year was 8.9 miles. The overlay
program is also providing additional sidewalk, curb and gutter, and driveway approach
upgrades in effected areas.
• In the Sidewalks Program, the City has experienced results comparable to the Overlay
Program. As of November 1, 2003, the Sidewalks Program had completed 15,000 linear feet
of sidewalk and 7,000 linear feet of curb and gutter and driveway approaches leading to an
I
annual target of 20,000 linear feet of sidewalk and 10,000 linear feet of curb and gutter and
approaches. In 2002, production was 1,652 linear feet repaired and replaced and 1,522 linear
feet of new construction.
• The formerly separate divisions of Planning, Building Safety, Community Development &
Code Compliance, Engineering Design Services, and Engineering have been moved into a
single department of Community Planning and Engineering Services to more effectively
manage growth related issues This reorganization is already resulting in a smoother, more
efficient operation with an increased focus on planning that is important to us as this City and
region continues to grow.
The benefits of the reorganization continue to be evident in that the services offered to citizens are
being provided in a more cost effective manner. Our population continues to grow and staffing has
remained relatively flat over the past three years. Staff has technology to meet the increased service
demands. However, there are areas where technology cannot assist and in those areas overtime has
been utilized to continue to meet the increased service demands. Overtime, as a substitute for
staffing increases, is a workable option for a period of time In this budget, I am proposing to add
staff that is partially funded by a reduction in overtime. In addition, I am proposing to hire the
additional firefighters for Fire Station #7 during the year by using existing overtime in the Fire
Department. This is a one-year fix.
2003 has been a very active year for this City government. City Council and staff have worked very
hard in dealing with numerous difficult issues over the past few months. We have accomplished a
great deal that will lead to long-term benefits for the community. The two items that stand out are
the Strategic Retreat that involved a cross section of Fayetteville citizens and completion of a citizen
survey. These two accomplishments have provided the opportunity for us, as policy makers, to
develop a unified vision of our City and an insight into what is important to our constituency. The
implementation of the specific items has contributed greatly to our workload but the effort has been
worth it. A partial listing of accomplishments includes:
• the successful transition from a bag program to a cart program for Solid Waste & Recycling
• the sale of the I-540 property
• acquiring the property for Fire Station #7
• entering into the architectural contract for the design of the new fire station
• awarding of design contracts for the wastewater improvement project
• implementation of impact fees
• completion of a master transportation and traffic study
• completion of the Fayetteville Alternative Transportation and Trail Plan
• awarding a contract for a downtown master planning effort
• implementation of pay range adjustments
• use of Amendment 78 financing to reduce the cost of borrowing funds for equipment
• continuation of progress implementing the capital improvements program
• purchase of significant greenspace for preservation
• purchase of property utilizing funds from the tree settlement
II
• obtaining approximately 40 acres along Clabber Creek through negotiation with the
property owner
• continuation of improvements to the City's web site and municipal management system
• changes in disposal of sludge to be more environmentally responsible.
Economics continues to play a significant role in the City's ability to provide services for Citizens.
The City needs to continue to view all current expenditure plans in the context of the future year
impact. In keeping with this philosophy, staff developed a multi-year view of General Fund and
presented those findings in August. The City has relied on sales tax revenues to fund essential
government operations for the past ten years. Because of the market shift the City is experiencing in
sales tax collections, sales tax revenues cannot be relied on as the stable, growing revenue source to
fund on-going operations. Rcnewcd efforts need to be made to continue to grow our local economy.
The sale of the Wilson Springs property (1-540) provides the City with a one time resource that needs
to be carefully invested to maximize the benefits to our Citizens. 1 want to visit with the Council, as
part of an adjustment in our Strategic Plan, to ensure that these monies are effectively used to address
our Goals. Some of the proceeds could be used to establish a dedicated source of funds for economic
development purposes and to address the Guiding Principle of Attainable Housing for All Income
Levels. The funds used to purchase the 289 acres on 1-540 originated from funding set aside for
economic development and from a rebate of housing bonds as well as General Fund. Economic
development efforts must continue to involve the Fayetteville business community, the Fayetteville
School District, Washington County and the University of Arkansas.
2004 - THE YEAR AHEAD
The focus of the 2004 Adopted Budget for the City of Fayetteville is directed toward continued
implementation of the Goals 2008 statement developed from the Strategic Plan. In addition to
focusing the 2004 Annual Budget & Work Program toward implementation of the Goals 2008, this
budget was developed to build on philosophies of enhanced customer relations and cost-effective
public service and responsive government. With the continued focus of the City Council, the
Citizens of Fayetteville and staff, a number of projects, programs, and initiatives will be
accomplished. Together, we must facc the challenges to be met in 2004 and beyond to further
improve the quality of life in Fayetteville. The following is a discussion of some of the issues,
challenges, and goals incorporated into the 2004 Adopted Budget.
Principle:
Issue:
Guiding Principles, Issues and Challenges
A Financially Sustainable City Government Providing Top-quality, Responsive
Services
Loss of market share of sales taxes within the region.
The sales tax revenues for the region (Fayetteville, Springdale, Bentonville and
Rogers) have grown from $27.9 million in 1999 to $32.7 million for 2002.
Fayetteville's percentage of the regional sales tax revenues has declined from 39.02%
in 1999 to 38.01% in 2002. As this trend continues, the City will be faced with
utilizing other sources of revenue or reducing services.
111
Principle:
Issue:
Principle(s):
Issue:
Principle:
Issue:
Principle:
Issue:
Fayetteville has the lowest general sales and use taxes and millages for city
operations of any of our sister cities. However, when combined with hotel, motel and
restaurant taxes, county sales and use taxes, county and school district millages, the
tax burden becomes more balanced among the cities.
A Financially Sustainable City Government Providing Top-quality, Responsive
Services
Funding of the 2003 Pay Plan Study.
This budget contains funding to implement the Hay Group recommendations.
Reputation as a "Safe Community" and A Financially Sustainable City
Government Providing Top-quality, Responsive Services
Fire Station #7 staffing, increasing staff for Central Dispatch and adding a bike patrol
Officer.
This budget adds twelve firefighter positions to staff Fire Station #7 and to bring the
new employees in through the year. Staffing for the new fire station in this manner
will allow the City to re -allocate money programmed for overtime to salaries. Two
dispatcher positions are added in 2004. These positions will partially be funded by
existing overtime. One bike patrol officer is added.
A Financially Sustainable City Government Providing Top-quality, Responsive
Services
Three maintenance positions and a half-time clerk are added in this budget.
This budget adds a supervisor to monitor water maintenance crews to better plan and
supervise work in an effort to reduce overtime. The position is funded by re-
allocating money programmed for overtime to salaries. A half-time clerk is added to
address the growth in customers as well as the growth in services offered. Clerks in
the Business Office register each new customer for water, sewer and solid waste
service.
A Landscape Maintenance Worker III is added in this budget to address the
additional maintenance requirements associated with the landscaping areas added
along Dickson Street and the new Library.
A Diverse, Growing Local Economy
Economic Development.
The City has contracted for a downtown master plan that includes an economic
IV
development element. Additionally, the budget contains funding to continue the
revitalization of Drake Field and more fully utilize the South Industrial Park. The
efforts of 2003 resulted in the sale of the Wilson Springs (I-540) property. The sale
of this property provides the City with opportunities to better shape our future.
Once the Dickson Street Enhancement Project is completed, the City will be
incurring additional maintenance costs for landscape maintenance, litter control,
parking enforcement and public safety.
Principle: A Financially Sustainable City Government Providing Top-quality, Responsive
Services
Issue: Unfunded mandates.
Unfunded federal and state mandates continue to place a burden on local
governments nationwide and Fayetteville is no exception. In addition to allocating
resources to meet the requirements of the Clean Water Act, a water supply
vulnerability assessment and the Americans with Disabilities Act (ADA), the City
must allocate funds to comply with the regulations for commercial driver license
holders, licensing requirements for solid waste transfer station workers, and licensing
requirements in the water and wastewater areas.
The United States Environmental Protection Agency posted regulations governing
storm water management requirements for smaller cities in November 1999. Based
on population, the City has to comply with the regulations. These regulations are
commonly referred to as the Phase II Storm Water Management regulations. Early in
2004 the City will secure a permit with a five-year compliance implementation
requirement.
During 2003, City staff will be converting all of the City's financial reporting to
comply with the Governmental Accounting Standards Board (GASB) Statement No.
34. For more than a decade and a half, GASB has been working on a project
designed to change the framework of financial reporting for state and local
governments. In June 1999, the GASB marked the completion of this project with
the issuance of GASB Statement No. 34, Basic Financial Statements -and
Management's Discussion and Analysis -for State and Local Governments. Without a
doubt, GASB Statement No. 34 represents the most important single change in the
history of accounting and financial reporting for state and local governments. The
Statement was developed to make annual reports easier to understand and more
useful to the people who use governmental financial information to make decisions
(or who may do so in the future). legislators, their staff, and members of oversight
bodies; investors, creditors, and others who provide resources to governments; and
citizen groups and the public in general. Since the City of Fayetteville is a
government with total revenues of $10 million or more but Tess than $100 million,
implementation of the new pronouncement will be required for the fiscal years
beginning after June 15, 2002 (i.e. Fiscal Year 2003).
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Principle: Well-maintained City Infrastructure and Facilities
Challenge: Implementation of the Wastewater System Improvements Project (WSIP).
The WSIP is a project valued at $125 million that will provide the City with a second
wastewater treatment plant, improvements to the existing wastewater treatment plant,
improvements to the sewer collection system, and the elimination of several lift
stations. Design engineering contracts were approved during 2003. The project is
anticipated to be ready for construction by mid -year 2004.
Personnel Changes
The 2004 Budget adds twelve Firefighter positions for the Fire Department, two Dispatcher positions
and one Bike Patrol Officer position for the Police Department, one Landscape Maintenance Worker
III for the Parks & Recreation Division, one Water Field Operations Supervisor for the Water &
Sewer Maintenance Division, and a half-time Clerk for the Billing & Collections Division. The
firefighter, dispatcher, bike patrol officer, and landscape maintenance worker III positions are funded
in General Fund, and the water field operations supervisor and the half-time clerk are funded in
Water & Sewer Fund.
2004 Personnel. Summary
678.03 Total Employees (Full Time Equivalent Basis)
Police
172.43
Finance &
Internal
Services
61.50
Capital Improvements
Fire
Water &
Wastewater
70.00
Operations
170.85
General
Government
52.25
Community
Planning &
Engineering
Services
50.00
This budget contains funding for the 2004 projects included in the 2004-2008 Adopted Capital
Improvements Program. The projects are shown on pages 180-182.
VI
2004 FINANCIAL ACTIVITY SUMMARY
The 2004 Adopted Budget and Work Program includes approximately $184.8 million in
expenditures. All City funds are budgeted to comply with the City's policy of maintaining 10% of
budgeted operating expenditures in unrestricted fund balance or cash and investments with the
exception of General Fund, which must maintain a minimum reserve of $3.435 million or sixty (60)
days of annual regular general fund operating expenditures.
Summary of' Fund Expenditures
Category
Personnel
Materials & Supplies
Services & Charges
Maintenance
Internal Charges
Debt Service
Purchased Water
W.W.T.P. Operations
Total Before
Transfers/Capital/Depreciation
Transfers
Capital
Depreciation
Adopted 2003
$ 31,142,490
4,725,136
14,357,575
1,774,881
3,222,829
11,101,000
4,928,000
4,044,794
75,296,705
6,322,681
53,400,402
8,541,056
$ 143,560,844
Adopted 2004
% Change
$ 32,144,286 3.22%
4,899,741 3.70%
14,157,587 -1.39%
1,763,026 -0.67%
3,642,730 13.03%
10,243,911 -7.72%
5,508,000 11.77%
4,665,713 15.35%
77,024,994 2.30%
8,737,074
90,824,250
8,232,352
$ 184,818,670
38.19%
70.08%
-3.61%
28.74%
The City's adopted 2004 Budget increased approximately $40.8 million when compared to the
adopted 2003 Annual Budget. The majority of the increase in expenditures is primarily attributed to
the Wastewater System Improvements Project. Other changes are as follows: Personnel increased by
$1,001,796 mainly due to normal ment and step range increases that occurred throughout the year
and the City Council's adoption of the Pay Plan study recommended by the Hay Group; Internal
Charges increased by $419,991 equally for maintenance of older fleet units and replacement charges
of the new units purchased in 2003; Purchased Water increased by $580,000 due to a rate increase
from Beaver Water District; W.W.T.P. Operations increased by $620,919 primarily due a contract
increase with OMI; and Transfers increased by $2,414,393 in the Sales Tax Capital Improvements
Fund due to the sales tax revenue reallocation from 25% to 50% for a full year.
VII