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HomeMy WebLinkAbout216-10 RESOLUTIONRESOLUTION NO. 216-10 A RESOLUTION ADOPTING THE 2011 ANNUAL BUDGET AND WORK 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 2011 Annual Budget and Work Program. A copy of the Budget, marked Exhibit "A," is attached hereto and made a part hereof. PASSED and APPROVED this 7th day of December, 2010. APPROVED: ATTEST: B By: o��-.v Ze . City SO E. SMITH, CiN lerk/TrP�c SOND E. City Clerk/Treasurer ,11C/TR` 'f ormmm °TTR"', i° �em6 U/.moi map• FAY ETT EVI LLE 1:7 cy m ®m O y Kevin Springer Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 11/16/2010 City Council Meeting Date Agenda Items Only Budget & Research Division Action Required: Finance & Internal Services Department Approve a resolution adopting the Proposed 2011 Annual Budget & Work Program. N/A Cost of this request Account Number Project Number Budgeted Item Category / Project Budget Program Category / Project Name Funds Used to Date Program / Project Category Name Remaining Balance Fund Name Budget Adjustment Attached 4 11,-3-2010 Previous Ordinance or Resolution # Departm- .hector Date Original Contract Date: C. orney /1-3-/0 Date (14l,, .c Finance and Internal Services Director Date //'.1d Date 10A Date Original Contract Number: Received C t_ 1 0 P 0 3: 14 Clerk's C fic Comments: Revised January 15, 2009 ,roadbedkfitc ())Luievtliacyr1, 2010 C,C,14,41. aye ev[le ARKANSAS DEPARTMENTAL CORRESPONDENCE TO: Mayor Jordan and City Council THRU: Don Marr, Chief of Staff FROM: Paul A. Becker, Finance Director Kevin Springer, Budget Director 7 DATE: November 3, 2010 SUBJECT: Proposed 2011 Annual Budget & Work Program Recommendation: Consider the Proposed 2011 Annual Budget & Work Program for adoption by the November 16, 2010 City Council meeting. Discussion: The Proposed 2011 Annual Budget & Work Program will be distributed to City Council on Tuesday, November 9, 2010. Listed below is a schedule of hearing dates for the Proposed 2011 Annual Budget & Work Program. Date Budget Meeting/Location Saturday, November 6, 2010 Budget Discussion Meeting, Room 326 Tuesday, November 9, 2010 City Council Agenda Meeting, Room 326 Tuesday, November 16, 2010 City Council Meeting, Room 219 Additional meetings to be scheduled if needed. If you have any questions concerning the Proposed 2011 Annual Budget & Work Program, please feel free to contact either Paul A. Becker at 575-8330 or Kevin Springer at 575-8226. Thank you for your attention to this matter. RESOLUTION NO. A RESOLUTION ADOPTING THE 2011 ANNUAL BUDGET AND WORK 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 2011 Annual Budget and Work Program. A copy of the Budget, marked Exhibit "A," is attached hereto and made a part hereof. PASSED and APPROVED this 16th day of November, 2010. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer to c0 <0, • 2011 Adopted Annual Budget & Work Program 1"Tettcyille City of Fayetteville, Arkansas 2011 Annual Budget and Work Program City Council and Other Elected Officials Adella Gray, Ward 1 - Position 1 Brenda Thiel, Ward 1 - Position 2 Kyle Cook, Ward 2 - Position 1 Matthew Petty, Ward 2 - Position 2 Robert Rhoads, Ward 3 - Position 1 Bobby Ferrell, Ward 3 - Position 2 Shirley Lucas, Ward 4 - Position 1 Sarah Lewis, Ward 4 - Position 2 Kit Williams, City Attorney Sondra Smith, City Clerk/Treasurer Rudy Moore, District Judge Submitted by Lioneld Jordan, Mayor Don Marr, Chief of Staff Paul A. Becker, Finance Director Greg Tabor, Acting Police Chief David Dayringer, Fire Chief Prepared by Kevin Springer, Budget Director Barbara Fell, Senior Research Analyst Liz Hutchens, Financial Analyst tt!1ie ARKANSAS 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. City of Fayetteville, Arkansas Table of Contents Budget Message: Transmittal Memo from the Mayor to Council I-II 2011 Budget Executive Summary III -X Budget Resolution XI 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 9-10 Consolidated Fund - Department - Program Structure 11 Fund Summaries: Chart of Fund Types - Governmental 13 Chart of Fund Types - Proprietary & Fiduciary 14 Sources and Uses of Funds 15 Multi -Year Comparison - Adopted Budget Expenditures 16 Governmental Funds: General Fund: Fund Description 17-25 Fund Summary 26 Activity Expenditure Summary 27-38 Special Revenue Funds: Street Fund: Fund Description 39-40 Fund Summary 41 Activity Expenditure Summary 42-43 Parking Fund: Fund Description 45 Fund Summary 46 Activity Expenditure Summary 47 Community Development Block Grant Fund: Fund Description 49 Fund Summary 50 Activity Expenditure Summary 51 City of Fayetteville, Arkansas Table of Contents (continued) EDI Attainable Housing Grant Fund: Fund Description 53 Fund Summary 54 Activity Expenditure Summary 55 Special State Grants Fund: Fund Description 57 Fund Summary 58 Activity Expenditure Summary 59 Energy Block Grant Fund: Fund Description 61 Fund Summary 62 Activity Expenditure Summary 63 Parks Development Fund: Fund Description 65 Fund Summary 66 Activity Expenditure Summary 67 Impact Fee Fund: Fund Description 69 Fund Summary 70 Activity Expenditure Summary 71 Drug Law Enforcement Fund: Fund Description 73 Fund Summary 74 Activity Expenditure Summary 75 Debt Service Funds: Fire Bond Fund: Fund Description 77 Fund Summary 78 Activity Expenditure Summary 79 TIF Bond Fund: Fund Description 81 Fund Summary 82 Activity Expenditure Summary 83 Wastewater Improvements Sales Tax Bond Fund: Fund Description 85 Fund Summary 86 Activity Expenditure Summary 87 Capital Projects Funds: Replacement & Disaster Recovery Fund: Fund Description 89 Fund Summary 90 Activity Expenditure Summary 91 Sales Tax Capital Improvements Fund: Fund Description 93 Fund Summary 94 Activity Expenditure Summary 95 Capital Budget 96-97 City of Fayetteville, Arkansas Table of Contents (continued) Wastewater System Improvements Project Fund: Fund Description 99 Fund Summary 100 Activity Expenditure Summary 101 Sales Tax Construction Bond Fund: Fund Description 103 Fund Summary 104 Activity Expenditure Summary 105 Enterprise Funds: Water & Sewer Fund: Fund Description 107-109 Operating Budget 110-111 Activity Expenditure Summary 112-115 Solid Waste Fund: Fund Description 117-118 Operating Budget 119-120 Activity Expenditure Summary 121-122 Airport Fund: Fund Description 123-124 Operating Budget 125-126 Activity Expenditure Summary 127 Town Center and Parking Facility Fund: Fund Description 129 Operating Budget 130 Activity Expenditure Summary 131 Trust Funds: Police Pension Fund: Fund Description 133 Operating Budget 134 Activity Expenditure Summary 135 Fire Pension Fund: Fund Description 137 Operating Budget 138 Activity Expenditure Summary 139 Internal Service Funds: Shop Fund: Fund Description 141 Operating Budget 142-143 Activity Expenditure Summary 144 Personnel Summary Personnel Summary Full Time Equivalent Basis 145 Personnel Variation Summary 146 Personnel History 147 Personnel Summary by Activity & Fund 148 Personnel Summary by Activity & Division 149-162 City of Fayetteville, Arkansas Table of Contents (continued) Capital and Debt: Capital Improvements Program Introduction 163-165 Capital Improvements Program Directional Information 166-168 2011 Capital Projects Summary 169 2011 Capital Projects Comprehensive Detail 170-172 2011 Capital Budget 173-185 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: Organizational Chart 193 List of Elected Officials, Administrative Officials, & Management Staff 194 Outside Agency Funding 195 Acronyms 196-197 Glossary 198-203 Index 204-206 a'F vi�ville THE CITY OF FAYETTEVILLE, ARKANSAS ARKANSAS www.accessfayetteville.org December 7, 2010 Members of City Council and Citizens of Fayetteville I am pleased to submit my 2011 Annual Budget and Work Program 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 as well as necessary adjustments to the Capital Improvements Program for 2011. This Administration will continue to address issues that were identified at the Fayetteville Forward Summit as prioritized by the City Council. The budget was formulated in view of my primary budget goals and in the context of current economic conditions. 2011 Budgetary Goals My goals continue to be as follows: • To provide the same level of services to the public if possible • To retain the work force at the current level for necessary personnel but to evaluate the necessity of refilling open positions • To avoid increases in taxes to the citizen by keeping the millage rate the same as 2009 • To continue to provide services to the citizen in the most efficient and effective manner possible • To fund needed Capital Improvements to the extent possible • To scrutinize all City fund types for possible reductions Financial Environment The 2010 fiscal year continues to present financial challenges to the City of Fayetteville. Sales taxes for operations and capital have declined by approximately 2.15% for the City's levy of one cent and 2.50% for the City's share of the County Sales Tax when compared to 2009 collections. This is expected to continue throughout the remainder of the fiscal year. If this trend continues, budgetary losses of $636,000 will be experienced in the General Fund because of declining sales taxes. After analyzing all other revenue sources, it is estimated that the General Fund could be $765,000 or more under original revenue projections. Telecommunications Device for Me Deaf TDD (479) 521-1316 113 West Mountain - Fayetteville, AR 72701 THE CITY OF FAYETTEVILLE, ARKANSAS During budget deliberations last year, I made a commitment to the City Council that if the first quarter results of 2010 showed that revenues continued to fall that I would develop a plan to reduce expenditures to meet the decline. At the end of the first quarter, due to weakening economic conditions, it was estimated that the City could experience a revenue shortfall of up to $900,000 in 2010. To address that possibility, I developed an expenditure reduction plan that was coupled with certain fee increases to make up the $900,000 loss. Central to that plan was the freezing of an additional 13 FTE's and reductions of overtime in the Police and Fire Departments. I am happy to report that this plan has been successful and that we should end this year slightly under budget. This has been accomplished by the hard work and cooperation of all City employees along with the continuing support of the City Council. Employees had to absorb additional duties, supervisors had to resolve difficult scheduling problems, and all departments had to diligently review and carefully make decisions on purchasing issues. I am proud of what we have accomplished. In 2011, we have forecasted all revenue sources to be equal to 2010 projections. The frozen positions I have directed will be continued. Cuts made during 2010 will remain in force. Even after all these measures, once again, I am unable to provide funding for raises to employees as my top priority must be to keep this City financially stable. Conclusion This budget is both conservative and workable. I believe that it provides for the best possible level of services while providing for possible unstable economic conditions. However, if the economy continues to decline in 2011, I am prepared to do what is necessary to address that situation. The City has accomplished a great deal in the last few years and I am confident that with your support we will continue to provide an excellent level of services to our citizens. Through the combined efforts of this Administration and the City Council, I am sure we will continue to meet the challenges facing the City and provide our citizens with the services and amenities they want and deserve. )6/Ad4, Lioneld Jorda , Mayor Telecommunications Device For the Deaf TDD (479) 521-1316 II 113 West Mountain - Fayetteville, AR 72701 vie vide THE CITY OF FAYETTEVILLE, ARKANSAS ARKANSAS www.accessfayetteville.org December 7, 2010 Mayor Lioneld Jordan, Members of the City Council and Citizens of Fayetteville: The budget being presented is a 2011 operating budget. It does not include rebudgets that represent programs approved and appropriated in prior years which as of the end of fiscal 2010 remain uncompleted. Rebudgets also include amounts generated by previous bond issues in the Capital Project Funds which remain unspent as of December 31, 2010 and are likely to be in excess of $65,000,000. These re -budgets will be presented for addition to the 2011 operating budget early in the first quarter of 2011. In 2010, City and County Sales Taxes have continued to decline compared to 2009. By year end, total sales taxes are expected to be approximately 2% under prior year. The decline in both residential and commercial building has leveled off but fees associated with permitting and construction are about 40% of 2008 levels. Water and Sewer revenue collections have increased by 4% in fiscal 2010 due to rate increases and dry weather conditions during the summer months. Fuel and rent revenues at the airport continue to fall as the effects of the national recession continue. Other fund activities are relatively stable when compared to the prior year. The 2011 General Fund budget represents expenditure reductions from 2010 as an additional $541,100 was cut when compared to last year's budget. This was after the inclusion of over $647,000 in required increases due to pension obligations, insurance increases, and the restoration of vehicle replacement charges. The expenditure reductions are primarily due to the non -replacement of certain open positions (13 FTE's) and reductions in overtime. These measures began in 2010 and are being carried over in the 2011 budget. Once again no salary increases are provided for in the 2011 budget. Total reductions in the General Fund since the 2009 budget have been over $2.6 million. A total of 23.63 FTE's have been held open, overtime has been drastically reduced, and annual salary increases have not been given since July 1, 2009. All these measures were taken to address revenue decreases experienced in 2009 and 2010 as the City reacted swiftly to these economic changes. For 2011, the General Fund budget has been formulated on the assumption that revenues in 2011 will be the same as those expected to be realized in 2010. Therefore, to fully fund the expenditure budget, a $1 million transfer from the Sales Tax Improvements Fund and the use of $449,000 from fund balance will be required. Telecommunications Device for the Deaf TOO j479y 521-1316 111 1 13 West Mountain - Fayetteville, AR 72701 THE CITY OF FAYETTEVILLE, ARKANSAS 2011 ADOPTED BUDGET EXECUTIVE SUMMARY The 2011 Adopted Budget includes approximately $118.5 million in expenditures. This budget is formulated with the Enterprise Funds being budgeted on an accrual basis except for depreciation, which is not included in the budget, and both capital expenditures and bond principal payments which are included in the expenditure budgets. The total budget allocated by expenditure category is displayed in the following table. Summary of Fund Expenditures by Category (In Dollars) Category: Personnel Services Materials & Supplies Services & Charges Maintenance Fuel Internal Charges Purchased Water WWTP Operations Total Operating Expenses Transfers Out Debt Service Capital Total Expenses Adopted 2010 $ 42,903,826 4,481,432 15,899,515 3,482,218 2,964,677 3,353,815 6,500,000 8,489,578 88,075,061 1,034,000 19,546,554 1 1,81 1,650 Budgeted 2011 $ 42,092,155 4,527,208 16,052,793 3,975,581 2,946,398 3,944,052 6,500,000 7,712,706 Change In Dollars 2011 % of Total Budget $ (811,671) 35.5% 45,776 3.8% 153,278 13.5% 493,363 3.4% (18,279) 2.5% 590,237 3.3% 0 5.5% (776,872) 6.5% 87,750,893 (324,168) 74.0% 1,233,000 18,732,207 10,798,100 199,000 1.0% (814,347) 15.8% (1,013,550) 9.1% $ 120,467,265 $ 118,514,200 $ (1,953,065) 100.0% The 2011 Adopted Budget is in excess of $118.5 million. This is a decrease when compared to 2010 of $1,953,065 or 1.62%. The majority of that decrease is due to changes in debt service and fund transfers. The total operating expenses were also down $324,163 or 0.4%. Telecommunications Device for the Deaf TOD j479y 521-1316 IV 1 13 West Mountain - Fayetteville, AR 72701 THE CITY OF FAYETTEVILLE, ARKANSAS The following table indicates the percentage of total budget allocated by funds. Fund Totals as Percent of Total Budget Adopted 2010 Adopted 2011 Budget % Total Budget % Total Funding Sources General $ 34,426,600 28.6% $ 33,885,500 28.6% Street 4,271,000 3.5% 4,390,000 3.7% Parking 304,300 0.3% 1,065,100 0.9% Community Development Block Grant 649,821 0.5% 695,800 0.6% Parks Development 2,417,700 2.0% 2,424,600 2.0% Drug Law Enforcement 462,200 0.4% 494,000 0.4% Water & Sewer 31,269,400 26.0% 30,901,000 26.1% Solid Waste 10,098,900 8.4% 9,208,300 7.8% Airport 805,500 0.7% 770,800 0.6% Shop 5,481,200 4.5% 7,239,900 6.1% Impact Fee 2,820,000 2.3% 1,260,000 1.1% Fire Bond 802,400 0.7% 424,800 0.4% TIF Bond 5,800 0.0% 63,700 0.1% Sales Tax Bond 16,001,900 13.3% 15,373,700 13.0% Replacement & Disaster Recovery 45,000 0.0% 45,100 0.0% Sales Tax Capital Improvements 6,738,700 5.6% 6,390,000 5.4% Sales Tax Construction Bond 6,000 0.0% 6,000 0.0% Town Center 693,544 0.6% 702,700 0.6% Police Pension 1,689,800 1.4% 1,692,800 1.4% Fire Pension 1,477,500 1.2% 1,480,400 1.2% 120,467,265 100.0% 118,514,200 100.0% An examination of the overall budget indicated that the General Fund is the largest fund being 28.6% of the total. The Water and Sewer Fund is second at 26.1% of the total. The combination of these funds is 54.7% of the total budget. The Sales Tax Bond Fund (budget to repay outstanding bonds) is 13.0% of the budget. Thus the three largest funds represent 67.7% of the total operating budget. An important part of this budget document is the City's Financial Policies delineated in pages 4 through 8. These policies include the following: Revenue Policy Expenditure Policy Debt Policy Reserve Policy Investment & Cash Management Policy Capital Improvement Policy Financial Reporting Policy Administrative Procedures to Adjust the Approved Budget Telecommunications Device for the Deaf TOD j4791521-1316 113 West Mountain - Fayetteville, AR 72701 V THE CITY OF FAYETTEVILLE, ARKANSAS Overview of City's Major Funds: General Fund is the major operating fund of the City and is comprised of activities not accounted for specifically in other funds. The traditional functions of government are included in the General Fund which includes the following: general government services, fire, police, finance, internal services, parking, animal services, telecommunications, parks and recreation, cable, library funding, engineering, planning, and building safety. General Fund Revenue: The General Fund revenue budget was based on the following assumptions: • Revenue for the City Sales Tax is projected to decrease at a rate of 2.15% over 2009 actual receipts. • Revenue for the County Sales Tax is projected to decrease at a rate of 2.5% over 2009 actual receipts. • Revenue for Franchise Fees is projected to be flat. • Revenue for Property Taxes is projected to decrease at a rate of 4.3% from 2010 collections based on assessed valuation. • Other revenues are expected to be essentially flat compared on the 2010 budget. • Maintaining the revenue split for City Sales Tax to 60% operations and 40% capital. Based on these revenue assumptions, the major revenue sources for the General Fund in 2011 are projected to be as follows: City's Share of County Sales Tax $10.3 million City Sales Tax 9.2 million Alcoholic Beverage Taxes 0.5 million Franchise Fees 4.6 million Intergovernmental Income 2.1 million Fines & Forfeitures 1.7 million Charges for Services 1.4 million Property Tax Millage 1.5 million Licenses & Permits 0.6 million Transfer from Sales Tax Capital Fund 1.0 million Other 0.5 million Total $33.4 million General Fund Expenditures: Payroll expenditures are based on 99% of full employment. Therefore, a 1% vacancy allowance has been factored into the General Fund budget. Telecommunications Device for the Deaf TOO j4791521-1316 113 West Mountain - Fayetteville, AR 72701 VI THE CITY OF FAYETTEVILLE, ARKANSAS The significant increases/(decreases) in General Fund for 2011 are as follows: Additions: LOFPI Police Pension LOFPI Fire Pension Health Insurance (Rate Increase) Unemployment Insurance Pension Administration Fees Vehicle Replacement Charges Reductions: 58,494 54,346 45,147 30,000 17,185 442,620 647,792 Salary Contingency (86,500) Long Term Disability and Life Insurance (16,522) 2010 Budgeted Positions Held in 2011 (523,855) Fire Department Overtime (51,000) Police Department Overtime (174,000) Washington, D.C. Lobbyist (85,000) Parking Enforcement Program (201,948) Other (50,067) Net Additions/(Reductions) Changes between the 2009 and 2011 budget are as follows: (1,188,892) $ (541,100) 2009 General Fund Adopted Expense Budget: $ 35,801,900 Additions: Salaries/Wages & Pension (including LOFPI) 427,106 Health Insurance (Rate Increase) 135,884 Unemployment Insurance 80,000 Software Maintenance 37,336 Election Cost 15,000 Bad Debt Expense 10,000 705,326 Reductions: 2010 Budgeted Positions Held in 2011 & Frozen Positions (1,058,971) Salary Contingency (Wage Increases for 2010) (375,398) Fire/Police Overtime (225,000) Parking Enforcement Program (Shifted to Parking Fund) (201,948) Contract Services & Lease Expense (GCM Building) (112,176) Fuel (96,589) Washington, D.C. Lobbyist (85,000) Increase Cost Allocations (70,000) Vehicle Replacement Charges & General Motorpool Charges (67,614) Public Notification & Uniforms/Equipment (51,910) Planning Commissioners Salaries (43,596) Publications/Dues & Travel & Training & Radio Maintenance (26,315) Pension Administration Fee & Long Term Disability and Life Insurance (34,082) Other (173,127) (2,621,726) 2011 Adopted Budget General Fund $ 33,885,500 Telecommunications Device for the Deaf TOD j479y 521-1316 VII 1 13 West Mountain - Fayetteville, AR 72701 THE CITY OF FAYETTEVILLE, ARKANSAS As the City's main operating fund, the General Fund will continue to face increased funding demands. There are numerous unfunded needs for 2011 that could not be addressed at this time. Major policy issues to be considered for General Fund in the future include: • The need to fund employee wage increases sometime in the future. • Continue to explore an independent funding method for the Fayetteville Public Library. • Examination of the User Fee/Cost Reimbursement rates based on a cost analysis. • Examine the City's overall long term revenue stream to match required long term expenditures. The Street Fund is primarily financed by turnback revenues received from the State of Arkansas and turnback monies received from the County Road Millage Tax. These monies are utilized to maintain and repair City streets, rights-of-way, drainage, traffic control and maintenance, and City owned sidewalks. Revenues for Street Fund are primarily motor fuel taxes collected by the State (state turnback) and returned to the City on a per capita basis. The long term trend for state turnback is flat. A total of $3.2 million is projected for 2011. The City also receives 80% of the road millage levied by the Quorum Court on real and personal property located within the City. This should generate in excess of $1 million. The Street Fund budget is balanced for 2011 with revenues equaling expenditures. The Parks Development Fund accounts for the revenue and expenditures of the Parks HMR tax approved by the voters in 1995 as modified by the 2011 referendum. The $2.4 million in planned expenditures for 2011 includes $754,000 in capital improvements. The fund is budgeted to break even for 2011. All projected revenues amounts are budgeted for this fund. The Impact Fee Fund accounts for the revenues and expenditures related to the collection of water, wastewater, police, and fire impact fees. All projected revenues are budgeted for this fund. Due to the dramatic fall in development, the collection of these fees will be much less in 2011 when compared to 2009 when new building was at a higher level. The Sales Tax Capital Improvements Fund accounts for the revenue and expenditures of the City's sales and use taxes which are used for acquisition and improvement projects as well as equipment additions and replacements that are included in the City's five-year capital improvements program as adjusted. The 2011 planned expenditures include $5,383,300 in capital improvements. The Water & Sewer Fund accounts for the revenue sources as well as the operation and maintenance expenses of the City's water and sewer system. This includes water purchases from Beaver Water District, all water and sewer functions, the operation of the wastewater treatment plants, meter and backflow operations, and billing and collections. Telecommunications Device for the Deaf TOO j4791521-1316 113 West Mountain - Fayetteville, AR 72701 VIII