Annual Budget Book 2022

City of Hot Springs, Arkansas
2022 Annual Budget

INTRODUCTION 8
12
What are Funds 28
City Manager's Budget Message 29
30
Organizational Structure 31
Staffing Summary 33
Appointed Officials
35
Resolution Adopting the 2022 Budget
Government Finance Officers Association - Budget Award 45

ECONOMIC CONDITIONS AND OUTLOOK 48
53
Economic Conditions & Outlook 57
58
FINANCIAL/OPERATIONAL 59
60
Total Summary of Funds 62
64
General Fund 66
67
General Fund Overview 68
Board of Directors 70
City Manager 71
City Attorney 71
Human Resources 71
Finance 72
City Clerk 73
Public Information 74
76
Information Systems 78
Planning and Development
82
Parks & Trails 89
Sport Recreation 92
93
Public Works 96
Traffic 99
102
Urban Forestry
Property Maintenance

Engineering
Special Appropriations
Oaklawn Reserve Fund
Major Capital Projects Fund

Special Revenue Funds

District Court

Police Fund

Animal Services

Fire Fund

Street Fund

Jail Maintence Fund & Jail Fines Fund

Intracity Transit Fund

Enterprise Funds

106 Parking Fund
109 Stormwater Fund
112 Airport Fund
116 Solid Waste Fund
121 Water Fund
125 Wastewater Fund
130 Wastewater Impact Fee Fund

Internal Service Funds

134 Employee Wellness Fund
136 Fleet Service Fund
139 Utility Administration
142 Utility Billing Services

Capital Budget

146 Summary

150 Capital Improvement Plan

156 Water System Master Plan

Debt Summary

162 Total Debt
162 General Governmental Debt
163 Special Obligation Debt
164 Enterprise Fund Debt
165 Revenue Bonds

Statistics

170 City of Hot Springs Quick Facts

APPENDICES

172 Appendix A | The History of Hot Springs
173 Appendix B | The Budget Calendar
174 Appendix C | The Budget Process
175 Appendix D | Financial Policies
178 Appendix E | Glossary of Terms
190 Appendix F | Board 2022 SMART Goals
196 Appendix G | City Manager Accomplishment of Board Goals for 2021
203 Appendix H | Additional City Manager Projects and Accomplishments for 2021
212 Appendix I | Employee Newsletter





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City Manager’s
Budget Message 2022

City of Hot Springs

Bill Burrough, City Manager
Dorethea Yates, Finance Director

Post Office Box 700
Hot Springs National Park,

Arkansas 71902

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Fund FY2021 FY2022 Net Change
General 29,016,569 31,338,147 2,321,578
District Court Probation 45,000 45,000 -
District Court Operating 930,059 1,066,870 136,811
District Court Automation 198,752 34,200 (164,552)
Police 14,912,387 15,790,991 878,604
Fire 12,575,427 12,020,410 (555,017)
Jail Maintenance Tax 3,300,000 3,900,000 600,000
Prisoner Expense Fines 80,000 80,000 -
Street 5,635,821 6,042,004 406,183
Intracity Transit 2,056,597 1,664,445 (392,152)
Major Capital Projects 20,000 20,000 -
Oaklawn Reserve 1,680,800 1,170,000 (510,800)
Parking 280,946 393,260 112,314
Stormwater 1,149,850 1,227,073 77,223
Airport 5,205,759 4,478,598 (727,161)
Solid Waste 8,756,945 9,056,705 299,760
Water 18,480,202 18,683,456 203,254
Wastewater 19,018,222 19,746,327 728,105
Employee Wellness 5,212,000 5,212,000 -
Fleet 1,081,723 1,129,814 48,091
Utility Administration 4,919,346 5,341,849 422,503

Total 134,556,405 138,441,149 3,884,744

Classification Amount % of Total
Sales tax $ 17,432,998 53%
Franchise fees 8%
Administrative fee 2,690,000 9%
Oaklawn racing and gaming 2,968,862 14%
Intergovernmental 4,508,000 4%
Occupation licenses 1,336,280 3%
Alcohol permits and taxes 3%
Fines 875,000 2%
Other 1,075,000 1%
Loan proceeds 1%
Fees and permits 586,750 1%
427,450
Total 376,000 100%
485,900

32,762,240

Expense Classification Amount % of Total
Personnel $ 7,172,626 23%
Services, Supplies, Intergovernmental 12%
Debt Service 3,770,672 2%
Transfers Out 584,558 60%
Capital 3%
Reserves 18,650,811 1%
888,730
Total 270,750 100%

$ 31,338,147

Department 2022 Proposed 2021 Adopted Net change %
Board of Directors 70%
City Manager Budget Budget 1%
City Attorney 3%
Human Resources $ 196,550 $ 115,550 29%
Finance 504,957 497,572 8%
City Clerk 447,699 435,677 26%
Public Information 546,227 423,233 8%
Information Services 18%
Planning and Development 1,220,881 1,132,362 38%
Parks and Trails 293,454 232,165 20%
Sport Recreation 213,347 197,107 102%
Public Works 952,248 809,985 4%
Engineering 3%
Traffic 2,124,870 1,538,482 5%
Special Appropriations 1,979,926 1,650,120 2%
Total Expense
727,647 361,017 8%
– 1,309,516 1,257,335
–
295,126 287,845
– 784,294 744,351
19,741,405 19,333,768
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$ 31,338,147 $ 29,016,569
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Department Description -
Information Services
Planning Core switch Amount
Parks Truck 11,000
Parks Fence at bike park 27,000
Parks Christmas ornaments 21,230
Parks Sculpture 25,000
Parks Pakrat 25,000
Parks Front End Loader/Backhoe 100,000
Sport Rec Mower 22,000
PW - City Hall Softball turf replacement 15,000
PW - Urban Forestry Replace burglar alarm 335,000
PW - Urban Forestry Bushhog and tractor 65,000
PW - Urban Forestry Rear bushhog 135,000
PW - Urban Forestry Utility bed 16,000
Engineering Building improvements 11,000
Traffic Vehicle 5,500
Traffic Forklift 30,000
Signal controllers 20,000
Total 25,000

$ 888,730

Classification Amount % of Total
Personnel $ 12,800,002 81%
Services, Supplies, Intergovernmental 13%
Debt Service 2,069,244 3%
Capital 470,145 3%
Transfers Out 419,600 0%
32,000
Total 100%
$ 15,790,991

Description - 419,600
Vehicles
Amount
Total $ 419,600

$

Classification Amount % of Total
Personnel $ 9,130,959 76%
Services, Supplies, Intergovernmental 11%
Capital 1,321,963 7%
Debt Service 894,000 6%
673,488
Total 100%
$ 12,020,410

Description - 894,000

Truck Amount
Pumper truck $ 32,000
Hose dryers $ 800,000
Total
62,000
$

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Classification Amount % of Total
Personnel $ 1,317,743 22%
Services, Supplies, Intergovernmental 54%
Capital 3,237,300 7%
Debt service 398,000 3%
Reserves 163,961 14%
Transfers out 823,000 2%
102,000
Total 100%
$ 6,042,004

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Description Amount 398,000

1 ton truck with pump $ 40,000
Dump truck 175,000
Concrete saw 8,000
Snow plow w/ spreader 60,000
Bridge improvements 50,000
Lighting 20,000
Overhead RFB (Rapid Flash Beacons) 45,000
Total $

Classification Amount % of Total
Personnel $ 850,559 51%
Services, Supplies, Intergovernmental 49%
813,886
Total 100%
$ 1,664,445

Classification Amount % of Total
Personnel $ 17,465 4%
Services, Supplies, Intergovernmental 55%
Depreciation 214,805 41%
160,990
Total 100%
$ 393,260

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Classification Amount % of Total
Personnel $ 265,840 22%
Services, Supplies, Intergovernmental 43%
Depreciation 526,837 25%
Reserves 309,396 8%
Transfers out 100,000 2%

Total 25,000 100%

$ 1,227,073

Description Amount 899,000

Property for new Stormwater building $ 65,000
New Stormwater building 450,000
Drainage improvements 350,000
Security equipment 34,000
Total $

Classification Amount % of Total
Personnel $ 840,076 19%
Services, Supplies, Intergovernmental 41%
Reserves 1,851,700 12%
Transfers Out 550,000 0%
Depreciation 15,000 27%

Total 1,221,822 100%

$ 4,478,598

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Classification Amount % of Total
Personnel $ 4,210,498 46%
Services, Supplies, Intergovernmental 42%
Transfers Out 3,788,646 1%
Reserves 60,750 0%
Depreciation - 11%

Total 996,811 100%

$ 9,056,705

Description Amount 460,000
Tractor $ 115,000
Bobcat
Dumpsters (Commercial Roll-Off) 45,000
Residential rear load vehicle 100,000
200,000
Total
$

Classification Amount % of Total
Personnel $ 2,547,986 14%
Services, Supplies, Intergovernmental 42%
Debt Service 7,824,455 23%
Reserves 4,316,361 0.7%
Depreciation 21%
125,000
Total 3,869,654 100%

$ 18,683,456

Description Amount
New gate at property line $ 20,000
1/2 ton truck
Fencing around back side of property 40,000
Forklift with extended reach 20,000
Raw/Finish flow meters 60,000
Walking beam floculators 42,000
Mini excavator 400,000
5 yard dump truck 55,000
Air compressor 110,000
Backhoe 25,000
Mini excavator 140,000
Water main improvements 55,000
District metering project 1,500,000
250,000
Total
$ 2,717,000
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Classification Amount % of Total
Personnel $ 3,929,653 20%
Services, Supplies, Intergovernmental 39%
Debt Service 7,787,733 14%
Depreciation 2,666,151 27%
5,362,790
Total 100%
$ 19,746,327

Description Amount
Sampler $ 8,000
Sampler
Wheeled loader 8,000
Motorized hose reel with tracks 210,000
Line improvements
Pump station improvements 75,000
1,500,000
Total 2,000,000

$ 3,801,000

Classification Amount % of Total
Personnel $ 987,934 87%
Services, Supplies, Intergovernmental 11%
Depreciation 122,380 2%
19,500
Total 100%
$ 1,129,814

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Classification Amount % of Total
Personnel $ 3,217,496 60%
Services, Supplies, Intergovernmental 37%
Depreciation 1,993,297 2%
131,056
Total 100%
$ 5,341,849

Description Amount 310,000
Security fencing and gate - Adams Street $ 240,000
HVAC - Operations building
Zero turn commercial mower 7,500
Light duty medium 4x4 truck 17,500
Plotter replacement 35,000
10,000
Total
$

Budgeted Actual Fund Actual Ending
Fund
Revenue Expense Fund Balance Balance
Year Budget Budget Balance*
Change Change*
24,777 5,675
24,706 (in thousands) 5,840
24,957 8,242
2017 23,760 27,771 (1,017) 953 12,311
28,639 15,311
2018 23,521 31,338 (1,185) 165 16,735

2019 24,116 (841) 2,402

2020 26,982 (789) 4,069

2021 29,820 1,181 3,000

2022 32,762 1,424

*2021 and 2022 are estimated





2020 2021 Difference
2022 2021-2022
4 4
General Fund 4 4 40
City Manager 5 5 40
City Attorney 14 14 50
Human Resources 2 2 14 0
Finance 2 2 20
City Clerk 10 10 20
Public Information 19 19 11 1
Information Systems 19 19 23 4
Planning & Development 1 1 18 -1
Parks & Trails 9 9 21
Sports Recreation 9 10 90
Public Works Administration 8 8 10 0
Engineering 106 107 80
Traffic 112 5
17 16
Total General Fund 138 138 16 0
Special Revenue 8.5 8.5 144 6
78 78 8.5 0
District Court 24 24 78 0
Police 16 16 24 0
Animal Services 281.5 280.5 16 0
Fire 286.5 6
Street 0.5 0.5
Intracity Transit 3 3 0.5 0
Special Revenue Fund 12 12 3 0
Enterprise Fund 72 72 12 0
Parking 38 38 72 0
Stormwater 67 67 38 0
Airport 67 0
Solid Waste 192.5 192.5 0
Water 192.5
Wastewater 16 16
Enterprise Fund 14 14 16 0
Internal Service 24 24 14 0
Fleet 0 0 26 2
Utility Administration 54 54 00
Utility Billing Services 56 2
Utility Engineering 634 634
Internal Service Fund 647 13

Total All Funds

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New Commercial 2019 2020 2021
Existing Commercial # of Valuation # of Valuation # of Valuation

Total 35 $ 139,460,035 30 $ 56,621,656 37 $ 36,303,955
300 $ 15,318,442 178 $ 11,573,452 178 $ 36,188,884

$ 154,778,477 $ 68,195,108 $ 72,492,839

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2020 2021 2022
Actual Adopted Adopted
Budget Budget

REVENUES $ 22,483,062 $ 22,652,311 $ 26,194,497
Genera l s a l es /us e ta xes 2,978,898 4,952,000 4,508,000
Oa kl a wn ra ci ng/ga mi ng 2,809,977 2,610,000 2,690,000
Fra nchi s e fees 792,882 675,100 668,300
Fees a nd permi ts 748,615 750,000 875,000
Bus i nes s l i cens e fees 725,023 960,000 1,075,000
Al cohol rel a ted revenue 13,823,820
Intergovernmenta l s ervi ce 14,865,099 13,943,479 65,820,901
Cha rges for s ervi ces 59,766,619 62,315,037 1,853,200
Cha rges for mercha ndi s e 863,550
Fines 1,204,246 1,483,200 663,650
Inves tment ea rni ngs 907,761 838,550 499,500
Oth e r 694,400
1,203,503 608,800 119,535,418
Total revenues 5,182,772
113,668,457 112,482,877

EXPENDITURES/EXPENSES 9,308,920 10,574,302 11,232,213
Genera l government 1,282,973 1,213,811 1,186,070
Courts 24,446,127 29,222,168
Publ i c s a fety 1,414,664 27,153,952 2,097,870
Pl a nni ng a nd devel opment 6,359,677 1,517,482 9,079,812
Publ i c works 1,744,811 8,657,688 2,164,343
Pa rks a nd recrea ti on 5,199,146 1,870,687 6,143,043
Tra ns porta ti on 42,057,956 6,516,356 45,785,075
Uti l i ti es 8,172,260 8,874,664
Debt s ervi ce 2,315,421 43,893,389 2,600,330
Ca pi ta l 102,301,955 8,909,216 118,385,588
3,719,950
Total expenditures/expenses 12,975,319 18,611,561
OTHER FINANCING SOURCES (14,081,916) 114,026,833 (18,885,561)
(USES)
1,357,700 18,388,772 1,986,600
Tra ns fers i n (18,798,772)
Tra ns fers out 251,103 1,712,600
Is s ua nce of debt 11,617,605 2,955,950 2,862,430
Total other financing sources 180,490,743 193,110,342
(uses) $ 192,108,348 2,545,950 $ 195,972,772
Cha nges i n fund ba l a nce 1,001,994
Fund ba l a nce - begi nni ng 192,108,348
Fund ba l a nce - endi ng $ 193,110,342





Revenue 2021 Adopted 2021 Amended 2022 Adopted
Expenditures Budget Budget Budget
Change in Fund Balance
29,820,439 29,820,439 32,762,240
29,016,569 30,708,188 31,338,147
1,424,093
803,870 (887,749)

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Source 2022 Adopted Percent
Budget of Total
General sales/use taxes
Oaklawn racing/gaming 17,432,998.00 0.54
Charges for services (administrative fees) 4,508,000.00 0.14
Franchise fees 2,968,862.00 0.09
Fees and permits 2,690,000.00 0.08
Business license fees 0.02
Alcohol related revenue 485,900.00 0.03
Intergovernmental service 875,000.00 0.03
Fines 1,075,000.00 0.04
Investment earnings 1,336,280.00 0.02
Other 586,750.00 0.00
Total Operating Revenues 75,000.00 0.01
291,700.00 1.00
32,325,490.00

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Adopted Budget

2021 2022 % Change

Board of Directors $ 115,550 $ 196,550 41%
City Manager $ 1%
City Attorney 497,572 504,957 3%
Human Resources 23%
Finance 435,677 447,699 7%
City Clerk 21%
Public Information 423,233 546,227 8%
Information Systems 15%
Planning and Development 1,132,362 1,220,881 28%
Parks and Trails 17%
Sport Recreation 232,165 293,454 50%
PW Administration 4%
Engineering 197,107 213,347 2%
Traffic 5%
Special Appropriations 809,985 952,248 2%
Total
1,538,482 2,124,870

1,650,120 1,979,926

361,017 727,647

1,257,335 1,309,516

287,845 295,126

744,351 784,294

19,333,768 19,741,405

29,016,569 $ 31,338,147

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Adopted/ Amended/

Actual/ Actual Actual

Adopted Amended Estimate Change Change

2020 (789,378) (2,083,329) 4,068,758 4,858,136 6,941,465

2021 803,870 (887,749) 4,000,000 3,196,130 4,887,749

2022 1,424,093