1. Finance Department FY 2020 Recommended Budget
Joint Finance Committee/ Council
June 10, 2019

2. Operating Budget 2

3. Finance Department
FY 2019 Accomplishments
Fully staffed Budget Division through 3 internal promotions
Managed through 4 vacancies out of 13 staff in the Accounting & Analysis section
Completed the Cost Allocation Plan, resulting in $1.7 million more in cost recovery to the General Fund
Measure I election and implementation
Improved quarterly financial reporting
Along with the quarterly reporting, we also relaunched the Open Data portal with data dumps of accounting, A/P and Purchasing data
Print shop work and the Women’s Vote 100 logo

4. Finance Department Expense History By Fund General Fund $10,151,000
Expenses (rounded)
FY 2018
Actual
FY 2019
Revised
FY 2020
Recommended
General Fund
$10,151,000
$10,775,000
$11,113,000
CDBG Fund
60,000
61,000
65,000
Health Fund -
19,000
20,000
Building Services Fund
66,000
71,000
Rental Asst. Fund
49,000
27,000
29,000
HOME Fund
34,000
37,000
HOPWA Fund
3,000
Supportive Housing Fund
64,000
Other Housing Fund
24,000
14,000
15,000
Printing Services Fund
1,495,000
1,561,000
1,595,000
Workforce Invest. Fund
126,000
116,000
Total
$11,811,000
$12,735,000
$13,129,000

5. Finance Department Expense History By Division Accounting & Analysis
Expenses (rounded)
FY 2018
Actual
FY 2019
Revised
FY 2020
Recommended
Accounting & Analysis
$3,908,000
$4,113,000
$4,370,000
Budget
724,000
930,000
933,000
Finance-Admin.
1,424,000
1,391,000
1,409,000
Purchasing & Printing
2,660,000
2,767,000
2,828,000
Treasury/Cash Mgmt
3,095,000
3,535,000
3,589,000
Total
$11,811,000
$12,735,000
$13,129,000
FTEs
67.25
69.50

6. Finance Department Expense History By Category Personnel $8,232,000
Expenses (rounded)
FY 2018
Actual
FY 2019
Revised
FY 2020
Recommended
Personnel
$8,232,000
$8,404,000
$8,975,000
Services & Supplies
1,102,000
1,513,000
1,286,000
IS Charges
2,471,000
2,811,000
2,861,000
Other
7,000
Total
$11,811,000
$12,735,000
$13,129,000
FY 18 Budget for S&S was $1,485,000 so the FY19 wasn’t a large Budget increase, but rather reflective of under spending in FY18 as compared to Budget.

7. Finance Department Increased Purchasing Assistant to 1.0 FTE ($9,542)
Significant Changes From FY 2019 Original Budget
Increased Purchasing Assistant to 1.0 FTE ($9,542)
Previous position was a Purchasing Specialist
Previous incumbent had a voluntary furlough to 0.75 FTE

8. Finance Department
Significant Changes From FY 2019 Budget
Prepare for retirements, gain efficiencies and less reliance and training of contract temporary staffing
Add 1.0 FTE - Senior Accountant ($131k)
Pending retirement within the next 12 months
Accountant series has the highest turnover, largely due to promotions
KPMG review recommended improved cross-training, regular job rotation every 2 years and annual extended leave of 2 consecutive weeks
Position can support a variety of functions within the department and provide for cross-training
The original KPMG report provided for a number of recommendations that we’ve had difficulty implementing. Regular job rotation at least every two years and the plan that each person would take at least two consecutive weeks off per year have been a challenge due to short staffing and the workload volume. Having an extra body in advance should provide us opportunities to encourage more of these two things.

9. Finance Department Add 1.0 FTE - Collections Specialist ($101k)
Significant Changes From FY 2019 Budget
Add 1.0 FTE - Collections Specialist ($101k)
Pending retirement within 36 months
The two current staff each support an average of 1,500 open cases. 4,625 in total for FY18, 2,871 for FY19
Total annual collections in-house exceed $2.0m YTD
Outside collections still received 1,186 in cases in FY 19.
Cost absorbed by reducing S&S
Will re-evaluate after pending retirements before asking to continue
Budget for 2 collections staff is $216k. The same collection rate with an outside firm would have cost the city more than $520k
Our collectors have collected at least $600k per person in recent years

10. Finance Department
Future Planning
Explore and implement Electronic Bill Pay and Presentment services:
Business License and Public Health Permits
Conduct RFP for Citywide Audit contract
Develop long-term Capital Improvement Program funding plan

12. Finance Department Key Issues
FY 2020 Key Issues and Strategies
Key Issues
Increase publicly available financial data
Strategies
Listing of new Business Licenses monthly
Listing of unclaimed funds/uncashed checks that are 120 days old
Expand the Open Data portal with additional financial information

13. Finance Department Key Issues
FY 2020 Key Issues and Strategies
Key Issues
Build upon new Cost Allocation Plan (CAP)
Strategies
Assist departments with Cost of Service studies
Assist departments with specific CAP related to outside funding
Implement plan to refresh CAP every two years

14. Finance Department Key Issues
FY 2020 Key Issues and Strategies
Key Issues
Develop Citywide standards and expectations for print and digital media
Strategies
Strengthen relationship with PIO’s Office to develop standards
Create approved repository of approved logos, designs, templates, etc.

15. Finance Department
FY 2020 Major Cost Components (Non-Personnel)
Contract Services – Temporary staffing and annual software subscriptions.
Funding for temporary staffing to support the Phase 2 HR/Payroll implementation.
Software subscriptions ($70k):
Collections, timekeeping, Planet Bids, Labor cost tracking for contracts, banking services, investment management,
Armored car services ($36k)
Actuarial services ($32k)