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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. 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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 Packet Page Number 34 of 36 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. Packet Page Number 35 of 36  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.   Packet Page Number 36 of 36