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Home My WebLink About233-05 RESOLUTIONRESOLUTION NO. 233-05 A RESOLUTION ADOPTING THE 2006 ANNUAL BUDGET AND WORK PROGRAM AS APPROVED AND AMENDED. 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 2006 Annual Budget & Work Program as approved and amended. A copy of the Amended Budget, marked Exhibit "A" is attached hereto and made a part hereof. PASSED and APPROVED this 6th day of December, 2005. �......T R...... ZKCie c'1 Y O,c • SGp • •v: =U• :FAYETTEVILLE• �' S•RKAN;POJT,: ATTEST. •'•.;;7/NITON �..``.. .•numnut" By: SONDRA SMITH, City Clerk APPROVED: By: DAN COODY, Mayo City Clerk's Office Storage #1 ARKANSAS City of Fayetteville, Arkansas Annual Budget & Work Program 2006 City of Fayetteville, Arkansas 2006 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 Bobby Ferrell, 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 Ray Boudreaux, Aviation & Economic Development Director Louise Schaper, Library Director Gary Dumas, Operations Director Stephen Davis, Finance & Internal Services Director Frank Johnson, Police Chief Tony Johnson, Fire Chief Prepared by Kevin Springer, Budget Manager Barbara Fell, Senior Research Analyst Glynis Nelson, Financial Analyst Stacey Kirk, Budget Analyst GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO City of Fayetteville Arkansas For the Fiscal Year Beginning January 1, 2005 SS *srP President 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 beginmng January 1, 2005. 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. 1 1 1 1 1 1 1 1 1 1 ayntatle R AKAN SAS KANSAS 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. O U District Court O U 1 m 2 Cable Administration Public Information E m E U 05 s L. U m cN lL City Clerk/Treasurer City Attorney Internal Audit — 1—City Prosecutor `o 0.0 — Accounting & Audit Billing & Collections ater & Wastewater —Budget& Research `c `c E c o of c m N CO' ao —Building Services c 0 .4 0 ma `° m $ g y c m0 ICS m m 2 c 3it M 33 I I I — Long Range Planning Nco 0. a - I c cc o U to n a m C o 0 _m 2 N .to 8 0 — Central Dispatch —Current Planning —Engineering — Drug Enforcement — Fleet Operations E E 8 0 a r — Parks & Recreation — Solid Waste & Recycling 1 1 1 1 1 1 1 1 1 s 1 1 1 1 1 1 1 1 1 1 City of Fayetteville, Arkansas Table of Contents Budget Message: Transmittal Memo from the Mayor to Council I -XI 2006 Adopted Budget Executive Summary XII -XIX Budget Resolution XX Community Overview XXI-XXIII Miscellaneous Statistical Data XXIV-XXV Management Agenda: Management Agenda Introduction 1 2006 Management Agenda - Summary 2-3 2006 Management Agenda - Detail 4-1 I Progress Update — 2005 Management Agenda 12-20 Budget Process and Policies: Budget Process 21-22 Budget Flowchart 23 Financial Policies: Revenue Policy 24 Expenditure Policy 24-25 Debt Policy 25 Reserve Policy 25 Investment and Cash Management Policy 25-26 Capital Improvement Policy 26 Financial Reporting Policy 26 Administrative Procedures to Adjust the Approved Budget 27-29 Budget Organizational Structure 30 Consolidated Fund - Department - Program Structure 31 Fund Summaries: Chart of Fund Types - Governmental 33 Combined Statement of Fund Position - Governmental (Shown by Department) 34 Chart of Fund Types - Proprietary & Fiduciary 35 Combined Statement of Fund Position - Proprietary & Fiduciary (Shown by Department) 36-37 Sources and Uses of Funds 38 Multi -Year Comparison - Adopted Budget Expenditures 39 Governmental Funds General Fund: Fund Description 41-46 Revenue & Expenditure Summary 47 Expenditure Detail 48-49 Special Revenue Funds Street Fund: Fund Description 50-51 Revenue & Expenditure Summary 52 City of Fayetteville, Arkansas Table of Contents (continued) City Advertising & Promotion Fund: Fund Description 54 Revenue & Expenditure Summary 55 Off Street Parking Fund: Fund Description 56 Revenue & Expenditure Summary 57 Community Development Block Grant Fund: Fund Description 58 Revenue & Expenditure Summary 59 Parks Development Fund: Fund Description 60 Revenue & Expenditure Summary 61 Impact Fee Fund: Fund Description 62 Revenue & Expenditure Summary 63 Drug Law Enforcement Fund: Fund Description 64 Revenue & Expenditure Summary 65 Debt Service Funds Arts Center Bond Fund: Fund Description 66 Revenue & Expenditure Summary 67 Wastewater Improvements Sales Tax Bond Fund: Fund Description 68 Revenue & Expenditure Summary 69 Capital Projects Funds Library Construction Fund: Fund Description 70 Revenue & Expenditure Summary 71 Replacement & Disaster Recovery Fund: Fund Description 72 Revenue & Expenditure Summary 73 Sales Tax Capital Improvements Fund: Fund Description 74 Revenue & Expenditure Summary 75 Capital Project Detail 76-77 Wastewater System Improvements Project Fund: Fund Description 78 Revenue & Expenditure Summary 79 TIF Capital Improvements Fund: Fund Description 80 Revenue & Expenditure Summary 81 Enterprise Funds Water & Sewer Fund: Fund Description 83-85 Working Capital 86 Revenue & Expenditure Summary 87 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 City of Fayetteville, Arkansas Table of Contents (continued) Solid Waste Fund: Fund Description 88-89 Working Capital 90 Revenue & Expenditure Summary 91 Airport Fund: Fund Description 92-93 Working Capital 93 Revenue & Expenditure Summary 94 Town Center and Parking Facility Fund: Fund Description 96 Revenue & Expenditure Summary 97 Continuing Education Center and Parking Facility Fund: Fund Description 98 Revenue & Expenditure Summary 99 Trust Funds Police Pension Fund: Fund Description 100 Revenue & Expenditure Summary 101 Fire Pension Fund: Fund Description 102 Revenue & Expenditure Summary 103 Municipal Judge Retirement Fund: Fund Description 104 Revenue & Expenditure Summary 105 Internal Service Funds Shop Fund: Fund Description 106 Working Capital 107 Revenue & Expenditure Summary 108 Budget by Activity: All Activities 109 Airport Activity 110 Development & Engineering Services Activity 1 11 Internal Services Activity 112 Fire Activity 113 General Government Activity 114 Library Activity 115 Parks & Recreation Activity 116 Police, Courts, & Prosecutor Activity 117 Solid Waste Activity 118 Transportation & Parking Activity 119 Water & Wastewater Activity 120 Unallocated Activity 121 City of Fayetteville, Arkansas Table of Contents (continued) General Government: Organizational Structure 123 Overview 124 Program Expenditure Summary 125-127 Personnel Summary 128-129 Mayor's Administration 130 City Council 131 City Attorney 132 City Prosecutor 133 Hot Check 134 District Court - District Judge 135 Aviation & Economic Development - Economic Development 136 Public Information 137 Cable Administration 138 Internal Audit 139 City Clerk/Treasurer 140 District Court - Criminal Cases 141 District Court - Probation & Fine Collection 142 District Court - Small Claims & Civil Cases 143 Library 144 Miscellaneous 145 Aviation & Economic Development - Airport Administration 146 Aviation & Economic Development - Airport Maintenance 147 Aviation & Economic Development - Airport Operations .148 Aviation & Economic Development - Airport Capital Expenditures 149 Operations: Organizational Structure 151 Overview 152 Program Expenditure Summary 153-161 Personnel Summary 162-166 Operations Director 167 Parking & Telecommunications - Utilities Management 168 Parks & Recreation - Swimming Pool 169 Parks & Recreation - Administration/Recreation Programs 170 Parks & Recreation - Lake Maintenance 171 Parks & Recreation - Parks Maintenance 172 Parks & Recreation - Yvonne Richardson Community Center 173 Parking & Telecommunications - Parking Management 174 Planning & Development Management 175 Engineering Design Services 176 Engineering - Operations & Administration 177 Engineering - Right -of -Way Acquisition 178 Engineering - Public Construction 179 Current Planning 180 Long Range Planning 181 City of Fayetteville, Arkansas Table of Contents (continued) Building Safety 182 Community Resources & Code Enforcement - Community Code Enforcement 183 Transportation - Operations & Administration 184 Transportation - Right -of -Way Maintenance 185 Transportation - Street Maintenance 186 Transportation - Drainage Maintenance 187 Transportation - Traffic Control & Maintenance 188 Transportation — Street & Trail Construction 189 Transportation - Sidewalks 190 Parking & Telecommunications - Off -Street Parking 191 Community Resources & Code Enforcement - Administration & Planning 192 Community Resources & Code Enforcement - Housing Services I93 Community Resources & Code Enforcement - Redevelopment 194 Community Resources & Code Enforcement - Public Services 195 Community Resources & Code Enforcement - Public Facilities & Improvements 196 Parks & Recreation - Parks Development 197 Parks & Recreation - Parks Development Capital 198 Water & Wastewater Director 199 Meter Operations - Meter Reading 200 Meter Operations - Meter Maintenance & Backflow Prevention 201 Meter Operations - Meter Operations Capital 202 Water & Sewer Maintenance - Water Purchased 203 Water & Sewer Maintenance - Operations & Administration 204 Water & Sewer Maintenance - Water Distribution Maintenance 205 Water & Sewer Maintenance - Water Storage & Pump Maintenance 206 Water & Sewer Maintenance - Sewer Mains Maintenance 207 Wastewater Treatment Plant - Operations 208 Water & Sewer Maintenance - Capital Water Mains 209 Water & Sewer Maintenance - Capital Expenditures 210 Water & Sewer Maintenance - Water & Sewer Connections 211 Water & Sewer Maintenance - Sewer Mains Construction 212 Wastewater Treatment Plant - Capital 213 Water & Sewer Maintenance - Debt Service 214 Solid Waste & Recycling - Operations & Administration 215 Solid Waste & Recycling - Commercial Collections 216 Solid Waste & Recycling - Residential Collections 217 Solid Waste & Recycling - Commercial Drop Box Collections 218 Solid Waste & Recycling - Recycling 219 Solid Waste & Recycling - Composting 220 Fleet Operations - Vehicle Maintenance 221 Fleet Operations - Capital Expenditures 222 Finance & Internal Services: Organizational Structure 223 Overview 224 Program Expenditure Summary 225-226 Personnel Summary 227-228 City of Fayetteville, Arkansas Table of Contents (continued) Finance & Intemal Services Director 229 Human Resources 230 Accounting & Audit 231 Budget & Research 232 Building Services - General Maintenance 233 Building Services - Janitorial 234 Purchasing 235 Information Technology 236 Billing & Collections 237 Police Department: Organizational Structure 239 Overview 240 Program Expenditure Summary 241-242 Personnel Summary 243 Central Dispatch 244 Animal Services - Patrol/Emergency Response 245 Animal Services - Animal Shelter 246 Animal Services - Veterinarian/Clinic 247 Police - Support Services 248 Police - Patrol 249 Police - Drug Enforcement 250 Fire Department: Organizational Structure 251 Overview 252 Program Expenditure Summary 253 Personnel Summary 254 Fire - Prevention 255 Fire - Operations 256 Fire - Training 257 Capital and Debt: Capital Improvements Program Introduction 259 Capital Improvement Program Directional Information 260-270 Summary of Project Requests & Project Resources 271 Capital Improvement Projects by Project Area - All Sources 272 Sales Tax Capital Improvements Funding - By Project Category 273 Capital Improvements Program Comprehensive Detail 274-277 2006 Capital Budget 278-288 Debt Position 289 Description of Outstanding Bonds 290 Schedule of Bonds Outstanding 291 Debt Service Payment Schedule 292 Legal Debt Margin Computation 293 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 City of Fayetteville, Arkansas Table of Contents (continued) Debt to Maturity Schedule 294 Appendix: City of Fayetteville Organizational Chart 295 List of Elected Officials, Administrative Officials, & Management Staff 296 Personnel Summary 297 Personnel Variation Summary 298-300 Acronyms 301-302 Glossary 303-308 Index 309-313 CITY OF FAYETTEVILLE, ARKANSAS THE BUDGET DOCUMENT The City of Fayetteville's budget document is an eight -part presentation consisting of the following sections: Budget Message Management Agenda Budget Process and Policies Fund Summaries Budget by Activity 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 2006. 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. Management Agenda This section begins with a brief introduction on the City of Fayetteville's guiding principles and goals. The management agenda section provides the readers with where the City is going and how the City will obtain those goals. Also included are the results of the prior year's goals. Budget Process and Policies The budget process and policies section gives the reader the procedural insight into the preparation of the Proposed 2006 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. Budget by Activity This section provides the reader with a budget format by activity instead of by division. 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 five major departments: General Government, Operations, Finance & Internal Services, Police, and Fire. The Department Summaries section contains the following: (I) 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 2004, Budgeted 2005, Estimated 2005, and Budgeted 2006. (3) Division Summaries - This section provides a comparison of program expenditures and staffing levels during the past four years for each division. Capital and Debt This section contains: a synopsis of the 2006-2010 Capital Improvements Program and planned capital expenditures for 2006. 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) Budget Message ITHE CITY OF FAYETTEVILLE, ARKANSAS a'F'yelfeville 1 December 6, 2005 1 Members of City Council and Citizens of Fayetteville I am pleased to submit my Adopted Budget for 2006 for the City of Fayetteville. This budget has been prepared in accordance with the Arkansas Statutes and City Ordinances that require the Mayor, under the aldermanic form of government, to submit to the City Council the annual budget for approval. This budget allocates necessary funding for all municipal operations for 2006 including the 2006 capital projects set forth in the 2006-2010 Capital improvements Program. ' Much work remains to be done. In 2006, this Administration will continue to address the priorities that have been identified by the Strategic Goal setting process as well as by the results of the 2005 Citizens' Survey. Each Department will be focusing upon key action item(s) to facilitate attaining 1 these goals while continuing to produce high quality municipal services in a cost efficient and cost effective manner. 1 This 2006 Budget Message is divided into two parts. The first section contains a discussion of issues and challenges that this City must be responsive to and for which solutions must be developed to ensure that our quality of life is sustained. The second section, the financial section prepared by ' the Finance & Internal Services Staff, contains a discussion of the financial condition of the City and a description of how the 2006 Budget is structured to address the goals we, as policymakers, have agreed upon. 1 Staff has developed the accompanying adopted budget and work program to address these policy statements as well as keeping with the overall direction provided in the budget preparation memo. 1 am incorporating a portion of the management goals provided to Staff for this years' submission. 2006 Budgetary Goals Some of my budgetary goals for 2006 are: • To minimize the use of reserves to fund ongoing operations for General Fund. Street Fund, and Parks Development Fund and to have Water & Sewer Fund Solid Waste Fund and Airport Fund operate within the revenue they generate i• To continue implementing capital improvements as funding is available • To provide community services which are responsive to the needs of the citizens • To obtain increased public support of City activities • To provide quality municipal government at the most practical cost • To produce a simple and easy -to -understand budget document • In keeping with these budgetary goals, each program or service delivery area must be carefully analyzed to ensure the service k sti!l needed and is being performed in the most cost effective and efficient manner possible. Each division head and department director was requested to review his/her operations and prepare a 2006 budget submission with these goals in mind. As each budget was prepared, the goals and objectives included in the Adopted 2005 Annual Budget as well as the Guiding Principles and Goals developed by the policy makers were referenced. There are numerous policy determinations that City Council must make over the coming year that will determine, in part, how our City will fare over the next ten to twenty years and longer. The focus of the City of Fayetteville's 2006 Budget is directed toward continued implementation of the Goals 2008 statement developed from the Strategic Plan and the 2004 Strategic Retreat. In addition to focusing the 2006 Annual Budget & Work Program toward implementation of these Goals, this budget was developed to build on philosophies of enhanced customer relations, cost- effective public service, and responsive forward -thinking 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. We must face the challenges to be met in 2006 together. All of our budget discussions need to occur in the context of our revenue stream. Fayetteville, during 2005, made progress in stabilizing our revenue stream. • During 2005, City Council approved a cost of services policy that provides guidance to Staff for the adjustment of user fees. City Council implemented police and fire impact fees for facilities and equipment, authorized a contract to update our impact fees for water and wastewater, and is considering implementation of impact fees for street improvements. • City Council approved a consulting contract that has proved effective in Fayetteville's ability to garner federal earmarks for critical infrastructure needs. This program resulted in significant federal funds for transportation improvements and sewer collection system rehabilitation. This budget contains funding to continue this effort. • City Council also approved funding from reserves for a special census. The results of the special census are expected early in the fourth quarter of 2006 and will provide significant additional operational revenue in the form of state-tumback. These measures, taken together, help offset the need for more a broad-based tax and utility rate adjustments to fund critical municipal services. • Our General Fund and Capital Improvements Program relies on sales and use taxes. A diversification of revenue for General Fund is essential to assure citizens minimal service disruptions as the regional economy expands and contracts. To place Fayetteville tax rates in perspective, sixty-five (65) cities in Arkansas collect a higher sales tax than Fayetteville. II • With a 1.3 millage for 2006, we are also, by far, the lowest property taxing entity in Northwest Arkansas and one of the lowest in the State. Our existing revenue streams have served us well. It is to the credit of our Staff that Fayetteville provides such high quality services while operating on such a tight revenue stream. Guiding Principles, Issues and Challenges In order 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 2006 Budget. I. Principle: Maintain Reputation as a "Safe Community" Issue: Identified need to locate fire stations in East Fayetteville to reduce response times primarily for the South, Southeast, North, and Northeast portions of Fayetteville Fire Station #3 is proposed to he constructed on property owned by the City at 1851 East Huntsville Road. This station will serve South and Southeast Fayetteville. Fire Station 45 is proposed to be relocated to Old Missouri Road at Highway 265 (Routh Park). Use of this location for a fire station has been ratified by the Parks and Recreation Advisory Board and planning for this facility is underway. The 2005 budget contained funding to construct both fire stations and fund an apparatus for Fire Station 43. An architectural services contract for Fire Station #3 is expected to be submitted for City Council approval late in the first quarter of 2006. The 2006 Adopted Budget contains funding for four (4) new fire fighters who are scheduled as the second phase hires for Fire Station #3. An additional five (5) fire fighter positions will be needed in early 2007 to complete staffing needs. No additional staffing will be needed due to relocating Fire Station 45. The Sales Tax Capital Improvements Fund contains funds from a bond issue to pay for these fire stations and for equipping Fire Station #3. Issue: Identified need to add patrol officers in order to meet calls -for -service as well as an identified need for an enhanced communications system during emergencies This budget contains funding for four patrol officers, a dispatcher, a support specialist and a 0.50 FTE evidence technician. A priority for federal grants during 2006 is to obtain funds for a multi - Jurisdictional fiber optic line to address the need for improved communications during emergencies. 2. Principle: Strong Partnership with the University of Arkansas Challenge: Continuing Education Center The City entered into a lease agreement with the University of Arkansas in 1979 that committed the City and the University to a formula that established the real estate transfer price for the III