HomeMy WebLinkAbout2011 08-08 City Council/Manager Workshop PacketAGENDA
MAPLEWOOD CITY COUNCIL
MANAGER WORKSHOP
5:45 P.M. Monday, August 8, 2011
Council Chambers, City Hall
A. CALL TO ORDER
B. ROLL CALL
C. APPROVAL OF AGENDA
D. UNFINISHED BUSINESS
E. NEW BUSINESS
1. Department Budget Presentations:
a. Police
b. Fire
c. Finance
F. ADJOURNMENT
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WORK SESSION AGENDA NO. E-1c
AGENDA REPORT
TO: City Manager
FROM: Finance Manager
RE: 2012 Finance Department Budget Presentation
DATE: July 28, 2011
INTRODUCTION
This item is being presented as part of the discussions on the 2012 Budget to provide
more information on the priorities of the Finance Department.
DISCUSSION
The General Fund portion of the proposed Finance Department budget for 2012 is
$750,270. 77% of this total ($575,850) is for personnel costs. The three other major
expenditures in Finance are Audit Fees, Internal IT Charges and Investment
Management Fees. There are no cuts requested by the City Manager because the
department request was in line with the guideline amount. Two sizeable items that were
not included in the 2012 request were funding for a Debt Study and TIF Analysis
update. The department is still in the process of reestablishing procedures and internal
controls that had gone unobserved for a few years in an effort to fully realize the
financial sustainability goal set by the Council.
Finance is an internal service function and does not have a revenue source that is
specifically attributed to it except for Investment Earnings and Management Fees which
are driven by economic forces. Finance is responsible for the billing and collection of
NSF fees, but this is a minimal amount.
Below is a table showing actual and budgeted expenditures for 2007-2012.
2007
Actual
2008
Actual
2009
Actual
2010
Actual
2011
Budget
2012
Proposed
101-201 Administration 277,466 367,800 329,651 323,578 331,680 350,840
101-202 Accounting 418,734 349,758 362,808 356,528 408,630 399,430
GENERAL FUND 696,200 717,558 692,459 680,106 740,310 750,270
606-203 Ambulance 81,775 84,719 54,582 51,797 41,170 41,420
TOTAL 777,975 802,277 747,041 731,903 781,480 791,690
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During 2010, the department recognized the following vacancies:
Former Asst. Finance Director/Accountant position – just under 3 months
Administrative Assistant position – extended medical leave
These vacancies resulted in decreased expenditures for 2010. In 2011, the department
will still recognize a partial vacancy for the Administrative Assistant position due to
medical leave, but all other positions are anticipated to be fully staffed for the entire
year.
Ambulance billing was outsourced at the end of 2008 and the cost of our A/R
Technician has been transitioned from the Ambulance Service Fund to the General
Fund with 100% of time being budgeted in the General Fund starting in 2011. This
position is being trained as the payroll backup which requires additional pay for
additional duties. Also, it is important to note that the payroll benefit costs for Finance
are increasing by $32,960 in 2012 due in part to the deficit in the Employee Benefits
Fund. Staffing numbers for the past few years have been as follows:
2007
Actual
2008
Actual
2009
Actual
2010
Actual
2011
Budget
2012
Proposed
Personnel 6 ft
1 pt
5 ft
2 pt
5 ft
2 pt
5 ft
2 pt
5 ft
2 pt
5 ft
2 pt
Below is a partial listing of the workload indicators that we measure in the Finance
Department. Most of them are staying pretty steady. The change in Number of
Invoices Prepared is due to the outsourcing of Ambulance Billing.
2007
Actual
2008
Actual
2009
Actual
2010
Actual
2011
Budget
2012
Proposed
# of Budget pages 348 300 318 310 330 320
# of CAFR pages 199 203 202 210 201 205
# of CIP pages 172 171 169 142 143 145
GFOA Budget Award No No Yes Yes Yes Yes
GFOA CAFR Award Yes Yes Yes Yes Yes Yes
# of Invoices prepared 3,022 3,065 725 463 450 450
# of Invoice paid 11,012 11,127 10,787 10,780 10,800 10,800
# of Payroll cks/dir dep 9,291 9,559 9,277 9,728 9,500 9,500
Department accomplishments and projects are as follows:
2010 Audit document was prepared in-house (first time since 2006) – savings of
$7,000.
Processing of developer bills resumed in May 2011.
Distribution of the PIP Monthly Status Report resumed in April 2011.
Distribution of Monthly Financial reports resumed in May 2011.
Currently working on new formatting for the budget document.
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Will soon be issuing new City purchasing cards which come with rebate incentives.
Our annual rebate is estimated to be $11,000.
Working on an expanded use of our Accounts Receivable module to better manage
collections and avoid overlooking revenues.
Additional fraud controls were implemented on City bank accounts.
Purchasing policies need to be updated.
A payroll refresher training session needs to be performed for supervisors.
Long range forecasts need to be completed for some funds.
RECOMMENDATION
No action is recommended as this is presented as information on review of proposed
expenditures for 2012.
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