HomeMy WebLinkAbout234-12 RESOLUTIONRESOLUTION NO. 234-12
A RESOLUTION ADOPTING THE 2013 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
2013 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 4th day of December, 2012.
APPROVED: ATTEST:
Bv:
%O ELD JOri� AN, Mayor
By:
SONDRA E. SMITH, City Clerk/Treasurer
`,01t io e t •
sem;
FAYETTEVILLE:
2013 Adopted Annual
Budget & Work Program
ARKANSAS
(Page Left Blank Intentionally)
City of Fayetteville, Arkansas
2013 Annual Budget
and
Work Program
City Council and Other Elected Officials
Adella Gray, Ward 1 - Position 1
Brenda Boudreaux, Ward 1 - Position 2
Mark Kinion, Ward 2 - Position 1
Matthew Petty, Ward 2 - Position 2
Justin Tennant, Ward 3 - Position 1
Bobby Ferrell, Ward 3 - Position 2
Rhonda Adams, 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 Financial Analyst
Liz Hutchens, Financial Analyst
Table of Contents
Budget Message
Budget Process & Policies
Fund Summaries
Personnel Summary
Capital & Debt
Appendix
Index
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
Budget Executive Summary III -XI
Budget Resolution XII
Budget Process and Policies:
Budget Process 1-2
Budget Flowchart 3
Financial Policies:
Revenue Policy 4
Expenditure Policy 5
Debt Policy 5
Reserve Policy 5
Investment and Cash Management Policy 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
Category Summary 27-37
Special Revenue Funds:
street Fund:
Fund Description 39-40
Fund Summary 41
Category summary 42-43
Parking Fund:
Fund Description 45
Fund Summary 46
Category Summary 47
community Development Block Grant Fund:
Fund Description 49
Fund summary 50
Category Summary 51
Special State Grants Fund:
Fund Description 53
Fund Summary 54
Category Summary 55
city of Fayetteville, Arkansas
Table of Contents
Energy Block Grant Fund:
Fund Description 57
Fund Summary 58
Category Summary 59
Parks Development Fund:
Fund Description 61
Fund Summary 62
category Summary 63
Impact Fee Fund:
Fund Description 65
Fund Summary 66
category Summary 67
Drug Law Enforcement Fund:
Fund Description 69
Fund Summary 70
Category Summary 71
Debt Service Funds:
Fire Bond Fund:
Fund Description 73
Fund Summary 74
Category Summary 75
TIF Bond Fund:
Fund Description 77
Fund Summary 78
Category Summary 79
wastewater Improvements Sales Tax Bond Fund:
Fund Description 81
Fund summary 82
category Summary 83
Capital Projects Funds:
Replacement & Disaster Recovery Fund:
Fund Description 85
Fund Summary 86
Category Summary 87
sales Tax Capital Improvements Fund:
Fund Description 89
Fund Summary 90
category Summary 91
Capital Budget 92-93
wastewater System Improvements Project Fund:
Fund Description 95
Fund Summary 96
Category Summary 97
Sales Tax Construction Bond Fund:
Fund Description 99
Fund Summary 100
Category summary 101
City of Fayetteville, Arkansas
Table of Contents
Enterprise Funds:
water & Sewer Fund:
Fund Description 103-105
Operating Budget 106-107
Category Summary 108-111
Solid waste Fund:
Fund Description 113-114
Operating Budget 115-116
Category Summary 117-118
Airport Fund:
Fund Description 119-120
Operating Budget 121-122
Category summary 123
Town Center and Parking Facility Fund:
Fund Description 124
Operating Budget 125
Category Summary 126
Trust Funds:
Police Pension Fund:
Fund Description 129
Operating Budget 130
Category Summary 131
Fire Pension Fund:
Fund Description 133
Operating Budget 134
Category Summary 135
Internal Service Funds:
Shop Fund:
Fund Description 137
Operating Budget 138-139
Category Summary 140
Personnel Summary:
Personnel Summary by organization Chart 141
Personnel Summary by Funding Source (FTE) 142
Personnel History by Funding Source (2004-2013) 143
Personnel Summary by Funding Source (Program) 144-146
Personnel Variation Summary 147
Personnel Summary by Activity (FTE) 148
Personnel History by Activity (2004-2013) 149
Personnel Summary by Activity (Program) 150-151
Personnel Detail by Activity &Division 152-164
Frozen Positions by Activity & Division 165-166
city of Fayetteville, Arkansas
Table of Contents
capital & Debt:
capital Improvements Program Introduction 167-170
Capital Improvements Program Directional Information 171-173
Capital Projects Summary (2013) 174
Capital Projects Comprehensive Detail (2013) 175-179
Capital Budget (2013) 180-194
Debt Position 195
Description of outstanding Bonds 196-197
Schedule of Bonds outstanding 198
Debt Service Payment schedule 199
Legal Debt Margin Computation 200
Debt to Maturity schedule 201
Appendix:
organizational chart 203
List of Elected Officials, Administrative officials, & Management staff 204
outside Agency Funding 205
Acronyms 206-208
Glossary 209-214
Index:
Index 215-217
ave evi_le
THE CITY OF FAYETTEVILLE, ARKANSAS
ARKANSAS
www.accessfayetteviRe,or.
December 4, 2012
Members of City Council and
Citizens of Fayetteville
I am pleased to submit my adopted budget for 2013 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 2013.
Once again, the budget was formulated in the context of my primary budget goals considering
current economic conditions.
2013 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 201 1
• To continue to provide services to the citizen in the most efficient and effective manner
possible
• To fund needed Capital Improvements to the greatest extent possible
• To scrutinize all City fund types for possible reductions
• To present a General Fund operating budget that is balanced with operating revenue
Telecommunications Device for the Deaf TDD (479) 521-1316 113 West Mountain Fayetteville, AR 72701
THE CITY OF FAYETf`EVILLE, ARKANSAS.
Financial Environment
The local economic conditions in Fayetteville have improved in fiscal 2012 when compared to
the first two years of my administration. Sales taxes are up approximately 5.5% compared to
prior year through the end of the third quarter of fiscal 2012. The City has also experienced an
increase in building activity. Unemployment still remains at 4.9%, which does compare
favorably to the rest of the State and Nation but still is high for Fayetteville historically. The
specter of national economic problems loom. For these reasons, this budget has been
formulated on conservative revenue and expenditure estimates. However, I am presenting a
balanced budget for the General Fund.
For 2013, we have forecasted all revenue sources to be equal to 2012 projections except for
sales tax which we estimate at a 2.0% increase. Almost all positions frozen in the past will be
continued. Many of the cuts made during the previous three years will remain in force. I
have not included a full salary increase in my adopted budget. At the close of the 2012 fiscal
year, I intend to analyze the City's financial position and if at all possible recommend a salary
package that includes a full 4% for employees to the Council.
Conclusion
This budget is based on realistic revenue and expenditure estimates. I believe that it continues
to provide for the best possible level of services while still guarding against possible weakening
economic conditions.
2012 has been another busy year for the City and together we have accomplished a great
deal. With the combined efforts of this Administration and City Council support, I am
confident that we will meet the Challenges facing the City and continue to provide our
citizens superior service levels.
Lioneld Jordan, Mayor
11
Wt!
ARKANSAS
yettev lte.4rg;
THE CITY OF FAYETTEVILLE, ARKANSAS
December 4, 2012
Mayor Lioneld Jordan, Members of the City Council and
Citizens of Fayetteville:
The budget being presented is a 2013 operating budget. It does not include re -budgets that
represent programs approved and appropriated in prior years which as of the end of fiscal
2012 remain uncompleted. Re -budgets also include amounts generated by previous bond
issues in the Capital Project Funds which remain unspent as of December 31, 2012. Total
rebudgets are likely to be in excess of $40,000,000. These re -budgets will be presented for
addition to the 2013 operating budget early in the first quarter of 2013.
In 2012, City and County Sales Taxes increased compared to 2011. By year end, total sales
taxes are expected to be approximately 5.4% over prior year. Residential and commercial
building has begun to increase but fees associated with permitting and construction will still
be far below 2008 levels. Water and Sewer revenue collections have increased in fiscal 2012
due to unusually dry weather conditions during the summer months. Fuel and rent revenues
at the airport are over 2011 collections. HMR revenue continues to increase and should
finish the year up 7% over 2011 actuals. Other fund operations are relatively stable when
compared to the prior year.
The 2013 General Fund budget represents net expenditure increases from 2012 as an
additional $1,917,800 was added compared to last year's budget. This was due to required
increases because of pension obligations, insurance increases, maintenance contracts, and
vehicle replacement charges. Also salary increases were approved in 2012. Certain
positions (21.6 FTE's) continue to be frozen. Cost control measures began in 2009 and are
being incorporated in the 2013 budget. A contingency of 2% has been included for a
potential salary increase in the 2013 budget.
For 2013, the General Fund budget has been formulated on the assumption that revenues in
2013 will be essentially flat compared to current 2012 estimates except for a 2% increase in
sales taxes which has been incorporated in the revenue estimates.
• Telecommunications Device for the Deaf TDD (479) 51.1315
113 West Mountain - Fayetteville, AR 72701
THE CITY OF FAYETTEVILLE, ARKANSAS
2013 ADOPTED BUDGET EXECUTIVE SUMMARY
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.
Governmental funds are budgeted on the modified accrual basis.
The total budget allocated by expenditure category is displayed in the following table.
Summary of Fund Expenditures by Category (In Dollars)
City of Fayetteville, Arkansas
2013 Operating Budget
Summary of Fund Expenditures (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
2012
$ 42,466,864 $
4,234,456
16,090,288
4,508,422
3,460,493
4,354,031
6,500,000
7,799,391
89, 413, 945
330,600
20,104,105
11,482,350
Adopted
2013
44,360,149 $
4,045,956
16,998,320
3,839,885
3,711,194
4,689,118
6,600,000
8,334,574
92,579,196
2,653,000
20, 713, 204
18, 946, 600
Change In
Dollars
1,893,285
(188,500)
908,032
(668,537)
250,701
335,087
100,000
535,183
2013
% of Total
Budget
32.8%
3.0%
12.6%
2.8%
2.8%
3.5%
4.9%
6.2%
3,165,251 68.6%
2,322,400
609,099
7,464,250
2.0%
15.4%
14.0%
$ 121,331,000 $ 134,892,000 $ 13,561,000 100.0%
The 2013 Adopted Budget is in excess of $134.8 million. This is an increase when compared
to 2012 of $13,561,000 or 11.2%. The majority of that increase is due to changes in capital
programs, internal transfers, and personnel services costs. The total operating expenses are
up $3,165,251 or 3.5%.
IV
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 2012
Funding Source
General
Water & Sewer
Sales Tax Bond
Solid Waste
Shop
Sales Tax Capital Improvements
Street
Parks Development
Police Pension
Wastewater System Improvements Project
Fire Pension
Parking
Impact Fee
Airport
Town Center
Drug Law Enforcement
Community Development Block Grant
TIF Bond
Replacement & Disaster Recovery
Sales Tax Construction Bond
Budget % of Total
$ 34,139,200
30,908,000
16,372,400
9,950,100
8,231,500
6,702,600
4,706,600
2,358,000
1,633,000
97,600
1,470,000
1,101,800
921,000
768,000
695,200
544,000
589,000
100,000
41,000
2,000
Adopted 2013
Budget % of Total
28.2% $ 36,057,000 26.8%
25.5% 34,920,000 25.9%
13.5% 17,871,000 13.2%
8.2% 11,774,000 8.7%
6.8% 8,486,000 6.3%
5.5% 8,253,000 6.1%
3.9% 4,708,000 3.5%
1.9% 3,074,000 2.3%
1.3% 1,629,000 1.2%
0.1% 1,520,000 1.1%
1.2% 1,468,000 1.1%
0.9% 1,162,000 0.9%
0.8% 1,060,000 0.8%
0.6% 955,000 0.7%
0.6% 697,000 0.5%
0.4% 568,000 0.4%
0.5% 541,000 0.4%
0.1% 100,000 0.1%
0.0% 42,000 0.0%
0.0% 7,000 0.0%
$ 121,331,000 100.0% $ 134,892,000 100.0%
An examination of the overall budget indicated that the General Fund is the largest fund
being 26.8% of the total. The Water and Sewer Fund is second at 25.9% of the total. The
combination of these funds is 52.7% of the total budget. The Sales Tax Bond Fund (budget to
repay outstanding bonds) is 13.2% of the budget. Thus the three largest funds represent
65.9% of the total operating budget.
An important part of this budget document is the City's Financial Policies delineated in
pages 4 through 8 which are incorporated as a part of the budget. 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
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 (Mayor's Administration, District Court, City Clerk and
City Attorney), fire, police, finance, internal services, 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:
• City Sales Tax is projected to increase at a rate of 2.0% over 2012 estimates.
• County Sales Tax is projected to increase at a rate of 2.0% over 2012 estimates.
• Franchise Fees are projected to be flat compared to 2012 estimated collections.
• Property Taxes are projected to increase at a rate of 1.47% from 2012 collections
based on assessed valuation.
• Other revenues are expected to be essentially flat compared to the 2012 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
2013 are projected to be as follows:
City's Share of County Sales Tax $1 1.6 million
City Sales Tax 10.7 million
Alcoholic Beverage Taxes 0.5 million
Franchise Fees 5.1 million
Intergovernmental Income 2.2 million
Fines & Forfeitures 1.7 million
Charges for Services 1.5 million
Property Tax Millage 1.7 million
Licenses & Permits 0.9 million
Other 0.2 million
Total $36.1 million
VI
THE CITY OF FAYETTEVILLE, ARKANSAS
General Fund Expenditures:
Payroll expenditures are based on full employment.
The significant increases in General Fund for 2013 compared to 2012 are as follows:
2012 General Fund Adopted Expense Budget:
Additions:
$ 34,139,200
Salary & Wages Increase $ 407,770
Personnel Services Turnover 258,200
Salary Contingency 400,000
LOFPI Police Pension 86,184
LOFPI Fire Pension 71,320
Retirement 79,881
Health Insurance (Rate Increase) 182,457
Police Jail Contract 54,250
Granicus Services (Government Channel) 27,000
Wellness Program 40,000
Sustainable Communities Network 15,000
Motorpool Charges 52,658
Transfer to Outside Entities 120,142
Capital 27,500
Software Maintenance 25,620
Office Machine Maintenance 32,063
Other 37,755
Net Additions $ 1,917,800
2013 General Fund Adopted Budget $ 36,057,000
Major policy issues to be considered for General Fund in the future include:
• The need to fund employee wages at a full step level.
• 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.
• Continued examination the City's overall long term revenue stream to match
required long term expenditures.
VII
THE CITY OF FAYETTEVILLE, ARKANSAS
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.
State turnback comes from 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 $3.4 million is projected for 2013. 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 2013 with
revenues equaling expenditures.
The Parking Fund has been established to account for the revenue and expense associated
with the paid parking program. A revenue bond issue for the construction of a parking
facility has been approved by the City Council but has not yet been issued. Net revenue
from this fund would be pledged for payment of that bond issue. This fund has a budgeted
surplus of $318,000 for 2013.
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 2012 referendum. The $3.1 million in
planned expenditures for 2013 includes $1,263,000 in capital improvements. The fund is
budgeted to break even for 2013. 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. The collection of these fees will be flat compared to 2012 estimated.
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 2013 planned expenditures include
$8,245,000 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.
For 2013, the Water & Sewer Fund is projected to have operating gain of $5,909,000
excluding depreciation expense and before capital expenditures. The wastewater
treatment plant operations are budgeted at $8.3 million, which represents over 31% of the
total operating expenses. The water purchases budgeted for 2013 represent the second
largest expenditure for operations in the fund at $6.6 million. This represents approximately
25% of total operating expenditures. This fund is budgeted to break even in 2013.
VIII
THE CITY OF FAYETTEVILLE, ARKANSAS
The Solid Waste Fund is responsible for the operation of the City's solid waste collection and
disposal, recycling program, and composting program. Revenues for the fund are obtained
from fees levied for trash collection, recycling revenue, and container sales or leases. During
the end of 2009, the operation of the transfer station was brought in house and is currently
being operated by the City.. For 2013, the Solid Waste Fund is projected to have a loss of
$2,277,000 primarily due to needed capital improvements. However, there are sufficient
reserves to accommodate this deficit.
The Airport Fund provides for the operation and maintenance of the City's municipal airport.
The Airport Fund's revenue is generated from rents and leases. For 2013, the Airport Fund is
projected to have an operating deficit of $47,000 before depreciation expense and capital
expenditures. The total budget deficit I $181,000.
The Shop Fund is an internal service fund that provides for the acquisition and maintenance
of equipment and vehicles utilized by the City's operating divisions. The Shop Fund's source
of revenue is from charges to other City operating funds based on equipment and vehicle
usage. The Shop Fund will have a projected $839,000 loss for 2013 after capital expenditures
of $3,865,000. This amount will come from fund balance which reflects the previous
accumulation of funds for replacement of equipment and vehicles when needed.
2013 Capital Budget
This plan contains a total of $23,056,000 for capital projects in 2013. A detail listing of all of
the projects planned for 2013 are included under the Capital and Debt section.
Debt Issues - 2012
In May of 2012, a refunding issue of $3,670,000 was executed by the City. That issue
refunded the outstanding 2002B Water & Sewer Revenue Bonds.
IX
THE CITY OF FAYETTEVILLE, ARKANSAS
Personnel Changes
Below is a history of total positions by activity from 2004-2013.
City of Fayetteville, Arkansas
Personnel History by Activity (2004-2013)
Activity 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
General Government 41.65 40.40 40.40 41.40 41.40 41.40 41.50 41.50 41.50 41.50
Finance & Internal Services 62.50 69.75 69.75 70.25 70.25 70.25 70.25 69.75 69.75 69.75
Police 157.63 167.63 170.63 171.63 171.63 171.63 171.63 171.60 171.60 171.60
Fire 101.00 104.00 109.00 113.00 114.00 114.00 114.00 114.00 114.00 114.00
Community Planning/Engineering 64.80 69.80 71.80 73.30 73.30 73.30 70.30 70.30 70.30 70.30
Transportation Services 79.00 91.50 91.50 93.50 93.50 93.50 96.00 95.00 96.00 96.00
Parks & Recreation 49.85 51.85 51.85 53.35 53.35 53.35 54.35 54.35 54.35 54.35
Business -Type 130.60 133.10 131.10 136.10 136.10 139.10 138.50 139.50 139.50 139.50
Total 687.03 728.03 736.03 752.53 753.53 756.53 756.53 756.00 757.00 757.00
Change from Prior Year 27.50 41.00 8.00 16.50 1.00 3.00 - (0.53) 1.00
X
THE CITY OF FAYETTEVILLE, ARKANSAS
CLOSING
The funding contained in this budget is the result of a collaborative effort among all City
Division Heads, Department Directors, and City financial Staff members. It is built on the
policies, goals, and objectives outlined by the Mayor and City Council. It represents the
financial and operational plan for the City of Fayetteville for 2013. The appropriations
contained in this budget will provide for quality municipal services that meet the needs of
the Citizens of Fayetteville and it is, hereby, submitted by the Mayor to the City Council for
consideration and adoption.
Respectfully submitted,
Respectfully submitted,
ti
Paul A. Becker Kevin Springer
Finance Director Budget Director
XI