HomeMy WebLinkAbout2007-05-02 Budget Committee Minutes
BUDGET COMMITTEE MEETING
MAY 2, 2007 PAGE 1 of 7
City of Ashland Budget Committee Meeting
Draft Minutes
May 2, 2007 6:00pm
Civic Center Council Chambers, 1175 East Main Street
CALL TO ORDER
Chairman Thompson called the Citizen’s Budget Committee Meeting to order at 6:03 pm on
May 2, 2007 in Council Chambers at 1175 East Main Street, Ashland, Oregon.
ROLL CALL
Councilors Hardesty, Chapman, Navickas, Jackson, Hartzell and Silbiger were present. Budget
Committee members Heimann, Bond, Gregorio, Levine, Everson, Stebbins and Thompson were
present.
STAFF PRESENT: MARTHA BENNETT, CITY ADMINISTRATOR
LEE TUNEBERG, ADMINISTRATIVE SERVICES/FINANCE DIRECTOR
TINA GRAY, HUMAN RESOURCES DIRECTOR
ANN SELTZER, MANAGEMENT ANALYST
RICHARD APPICELLO, ASSISTANT CITY ATTORNEY
SHARLENE STEPHENS, CLAIMS MANAGER
CINDY HANKS, FINANCE ACCOUNTING MANAGER
BRYN MORRISON, ACCOUNT REPRESENTATIVE
MIRANDA IWAMOTO, ACCOUNT CLERK II
ELECTED OFFICIALS PRESENT:
BARBARA CHRISTENSEN, CITY RECORDER
PAM BURKHOLDER-TURNER, MUNICIPAL JUDGE
PUBLIC INPUT
None
CITY RECORDER
City Recorder, Barbara Christensen, presented the City Recorder budget. Ms. Christensen
started by handing out charts that show detail about the department’s new revenue stream. The
new revenue stream is Passport Services. The charts display how much revenue has been
received and the number of passports issued since January 2006. Ms. Christensen explained
that the U.S. Post Office in Medford was originally the only place to obtain a passport before
implementing it at her office. Ms. Christensen said there is a $30 fee (amount established by
federal government) that the department receives for each processed application. Ms.
Christensen indicated that local businesses who sell passport photos have also benefited from
this new service.
Ms. Christensen continued by talking about her budget, stating that it has stayed baseline and
that there is very little change. Ms. Christensen said the change in Personal Services is for a
staff member who is going on family leave and therefore, a temporary person will need to be
hired during that time. She reported that Materials & Services has stayed fairly even. Ms.
Christensen said that although her department was not asked to cut an additional 5%, the
budget is still tight. She talked about how the City Recorder’s office needs more storage space
BUDGET COMMITTEE MEETING
MAY 2, 2007 PAGE 2 of 7
and that the department now pays the storage rental fees out of Materials & Services budget.
The cost per year is $2700.
Ms. Christensen also reported that the City Recorder’s office is responsible for the advertising of
the committee and commission vacancies. The advertising was reported to cost approximately
$1000 per year. The committee asked why the City Recorder’s office was responsible for this
advertising cost. It was answered that the City Ordinance requires vacancies to be advertised
and that it’s the City Recorder’s responsibility to put out those notices.
Committee member Gregorio inquired about why miscellaneous fees jumped. It was answered
that the increase was due to merchant fees (merchant fees are the fees associated with bank
card use). Ms. Christensen reported that the merchant fees used to be divided between the
various departments. However, because the City Recorder’s office is in charge of banking
services it became more appropriate to put the total expense in that department’s budget.
Committee member Everson asked about cost recovery. It was answered that cost recovery is
not allowed by law. It was also reported that the merchant fees are estimated to be $89,000 this
year. Councilor Hartzell asked how long card transactions have been used by the City. Ms.
Christensen answered that they have been used for at least 12 years. She also spoke about
how bank card use works to the advantage of the City because there isn’t a float time
associated with the monies. When asked about the processing time, Ms. Christensen thought it
was about the same. Ms. Christensen also explained that there are different merchant fee rates
for different cards.
Committee member Stebbins commended Ms. Christensen for implementing the Passport
Services.
Committee member Levine asked if the City of Ashland accepts electronic payments and if so,
what is the charge. It was answered yes and that costs vary by use.
Mr. Gregorio inquired about the imaging system. Ms. Christensen answered that her office is
always trying to work with the imaging system. She reminded the committee that documents
are available through the website and that the City Recorder’s office continues to train various
departments on how to put documents online. It was reported that it takes a lot of staff time and
can be expensive (scanners). Ms. Christensen encouraged use of electronic images to save
paper. Mr. Levine asked why the electronic images don’t replace the need for storage. Ms.
Christensen answered that the City Recorder’s office follows the state archivist retention
schedule and that the state only recognizes electronically scanned documents for a certain
period of time. The City has many documents that must be retained longer than the allotted
period of time and some documents must be retained permanently.
Councilor Hartzell asked if the expense was neutral for Passport Services. Ms. Christensen
stated that after an analysis, she estimates that the City Recorder’s office clears $10,000 per
year from Passport Services.
Councilor Hartzell also inquired about the impact on the City Recorder’s budget if the proposed
charter passes. It was answered that there wouldn’t be any implication to the budget rather just
more time spent reviewing the new charter.
Everson/Levine ms to approve the City Recorder budget as presented. All Ayes.
BUDGET COMMITTEE MEETING
MAY 2, 2007 PAGE 3 of 7
Administration
Martha Bennett, City Administrator, presented the budget for the Administration Department.
Ms. Bennett opened by explaining the structure of the department. She reported that
Administration has four divisions which are Human Resources, Legal, Mayor/Council and
Administration. She introduced the representatives from each division: Richard Appicello from
Legal, Tina Gray from Human Resources, and Ann Seltzer from Administration. Ms. Bennett
explained that Human Resources had been part of the Administrative Services Department but
was moved into Administration this year.
Ms. Bennett continued by explaining the responsibilities of the department (see attached
handout). She reported that the Administration Department provides coordination and support
activities for the City of Ashland. Ms. Bennett explained that the Council provides policy
leadership for the City and that the Administration division coordinates interdepartmental efforts
and does intergovernmental work. Human Resources is responsible for employee recruitment
and support. The Legal division represents the City of Ashland in all legal matters.
Ms. Bennett continued by explaining the major accomplishments of the current fiscal year (see
attached handouts). Ms. Bennett talked about hiring two new department heads (Community
Development and Police). Administration has supported lobbying efforts because it’s a
legislative year. Other major accomplishments include special projects such as the Mt. Ashland
expansion, library funding, dealing with vacant properties and the Public Arts Master Plan.
Ms. Bennett continued by speaking about the distribution of the Administration budget. The
total Administration budget is approximately 1.6 million dollars. She stated that roughly 9%
goes to Mayor/Council, 42% goes to Administration, and that both Human Resources and Legal
each make up about ¼ of the budget.
Ms. Bennett talked about the steady upward trend of this year’s budget due to salary and benefit
increases. Ms. Bennett also spoke about the 2007 budget and the $100,000 previously
approved for the community visioning effort. The project was not addressed and therefore, the
$100,000 from the general fund was not spent. In 2007, there were also higher than expected
outside legal costs and higher than expected recruitment costs. Ms. Bennett also reminded the
committee that even though Human Resources was in the Administrative Services’ 2007
budget, she included Human Resources in the bar graph (page 3 of the handout) to
demonstrate the trend. The committee inquired about the increased legal costs, Ms. Bennett
explained that it was due to turnover and a federal litigation matter.
Ms. Bennett continued to discuss the distribution of each proposed budget (see attached
handout). Ms. Bennett explained that the Mayor/Council budget is approximately $184,000. Of
that, about $117,000 is spent on Salaries & Benefits and 36% is spent on Materials & Services.
Ms. Bennett stated that the largest portion of Materials & Services are the dues paid to such
organizations as SOREDI, RVCOG, League of Oregon Cities, etc. She reported that the
majority of the Administration budget is also Salaries & Benefits. The Material & Services
charges for Administration are broken down into two categories, Central Service and General
Fund. Central Service expenses are those that support the department such as employee
training, copy charges, etc. The majority of the General Fund expenses are Public Educational
Government Access fees (PEG fees) that are paid to Rogue Valley television to broadcast the
various meetings.
BUDGET COMMITTEE MEETING
MAY 2, 2007 PAGE 4 of 7
The Human Resources budget is about $479,000 of which 72% is made up of Salaries &
Benefits. It was reported that the Materials & Services number includes recruitments and
retirement planning. The committee asked what makes up the Personal Services number. It
was answered that Human Resources has 3 people, the Human Resources Director, Human
Resources Assistant and an Administrative Assistant. Ms. Bennett also explained that the
workload in Human Resources is growing. Ms. Bennett continued by explaining that the Legal
budget is approximately $480,000 and that 72% of that budget is also for Salaries & Benefits
and 28% is for Materials & Services. Ms. Bennett stated that the Materials & Services number
includes outside legal counsel.
Ms. Bennett continued by talking about the changes to the budget from 2006-2007. As
previously stated, Human Resources was moved from the Administrative Services Dept. to the
Administration Dept. Ms. Bennett explained that Human Resources moved because it needs a
more city wide view. Human Resources staff was increased from 2 to 3 because of significant
employee turnover which is expected to continue. Ms. Bennett reported that 20 people
attended a recent PERS retirement meeting. The committee asked if this meant Human
Resources was now in a higher category within the City of Ashland. The answer was no. The
Materials & Services budget increased because of increased recruitments and advertising. It
was reported that the training budget for City Council also increased to make sure all councilors
are provided with adequate training. Ms. Bennett also spoke about how $100,000 for visioning
was eliminated from the General Fund. She also talked about how the Public Arts Master Plan
was not finished in 2007 and so there is an increase of $5000. The last change Ms. Bennett
discussed was the increase for outside legal counsel for services needed before/during the
recruitment for the new City Attorney.
Ms. Bennett listed the challenges for the upcoming year (see attached handout). The
challenges include finding and supporting a new City Attorney, coordinating City funding for
library (if levy fails), developing major projects on both Crowman and Railroad properties,
working with RVTD, recruiting new employees and negotiating new Electrical union contract.
Mr. Gregorio asked about trade offs between Human Resources and Legal. Ms. Bennett
explained that there was an error on page 3-11 and that Legal’s 2007 amended Salaries &
Benefits should read $223,720 and that Contracted Services should read $49,638. Ms. Bennett
explained there were two supplemental transfers in Legal and that the supplemental transfers
were accidentally added to Salaries & Benefits. However, the grand total should be the same.
Ms. Bennett also stated that there weren’t trade off’s, more that both departments’ workloads
have increased so much that outside help is needed.
Ms. Thompson clarified with Ms. Bennett that the increase for Human Resources was really just
a transfer from one City budget to another and that it’s not an actual increase (with minor
exceptions) to the City wide budget. Ms. Thompson also asked about whether or not the budget
was flat, up, or down. Ms. Bennett replied that the department is relatively flat from budget.
She said that they are up about $200,000 from projection and that the majority of that is for the
outside legal counsel, the additional Human Resources staff member and the additional
Materials & Services for recruitments. Ms. Thompson also asked about the $100,000. Ms.
Bennett replied that it was backed out of both revenue and expense. Ms. Bennett continued by
saying that there wasn’t an overall reduction to the Administration budget but that the goal was
to keep it flat. Ms. Bennett also explained that they took one position from Administrative
Services and moved it to Administration (Human Resources). Therefore, the Administration
budget increased and the Administrative Services budget decreased.
BUDGET COMMITTEE MEETING
MAY 2, 2007 PAGE 5 of 7
Mr. Tuneberg followed by reminding the committee that departments go across funds and that
the $100,000 is in the General Fund. Mr. Tuneberg called attention to page 4-66 which shows
the long term Central Service fund. Mr. Tuneberg explained to the committee that the
Administration budget was up approximately $455,000 but that the corresponding line items in
the Administrative Services budget was down about $419,000 and the difference is roughly the
movement of Human Resources from Administrative Services to Administration. He also
explained that the $100,000 is separate since it’s in the General Fund.
Mr. Levine inquired about the percentage of increase in fringe benefits for this year. It was
answered that it’s 10% increase for health benefits plus a salary increase fringe of about 1% so
it’s a total of about 11%. When asked about a specific increase, Ms. Bennett answered that it’s
due to the City Council benefits because the budget includes full-family coverage. Most likely,
the reality will not be full-family but wanted to be cautious in estimating the benefits.
Mr. Heimann asked why the City gives employees a 4% salary increase when the COLA is only
2.1%. It was answered that the different unions determine the salary increases and that those
increases are negotiated during contract negotiations. Ms. Bennett continued to explain that to
keep line managers and mid-managers’ salaries competitive with the union employees, they
must give a 4% salary increase. Otherwise, there’s not a lot of incentive to be a manager. It
was reported that there are currently 53 management employees within the City of Ashland.
Ms. Bennett also said it is her belief that the line supervisors are the heart of the City and the
ones who make everything work.
Bond/Everson ms to approve Administration budget as presented.
The committee was opened to discussion.
Ms. Thompson talked about how salaries and benefits continue to drive the budget forward and
expressed concern over the other needs of the City. She also said that the business industry
looks at head count. Ms. Bennett replied that the current budget is facing that dilemma right
now. Councilor Hartzell inquired about employment safety and risk management. It was
explained that a person (who works with the City’s risk management) moved from Legal down
into Administrative Services. It was also explained that Human Resources is responsible for
worker’s compensation and the workforce safety portion of employment safety and risk
management.
The committee voted on the motion. All Ayes.
Administrative Services
Administrative Services/Finance Director, Lee Tuneberg, presented the Administrative Services
budget. Mr. Tuneberg started with the major responsibilities of the Administrative Services
Department (see attached handout). The department performs various duties such as the
accounting and financial reporting, the billing and collection services, municipal court services,
downtown parking management, risk management and centralized purchasing services.
Mr. Tuneberg explained that the structure of Administrative Services is divided into two
categories: operating and non-operating. The operating division includes administration,
municipal court, accounting, purchasing and customer service. The non-operating division is
made up of the band, grants, debt, and capital. He listed the major accomplishments (see
attached handout) as a successful bid for audit services (contract is 3 years long), the appraisal
BUDGET COMMITTEE MEETING
MAY 2, 2007 PAGE 6 of 7
of Mt. Ashland’s assets, the conversion to an internally-built software program for utility billing,
revision of purchasing rules, inventoried assets and awards for budgeting and financial
reporting.
Mr. Tuneberg continued by speaking about the Budget Comparison graph (see page 3 of
attached handout). Mr. Tuneberg pointed out that Fire Station #2 was included in the 2007
budget. However, since the measure failed, it’s not included in the projected 2007 or in the
proposed 2008. Mr. Tuneberg explained that the 2008 capital number ($215,000) breaks down
as $15,000 for furniture and equipment and $200,000 for capital improvement for Parks Open
Space. Ms. Thompson inquired about Parks Open Space. It was answered that it is restricted
money for park improvements and that it is separate from Ashland Parks & Recreation. Mr.
Tuneberg also compared the expenditures for the operating and non-operating divisions (see
attached handout). He spoke about the decrease in insurance services. Insurance Services
includes premiums, losses, consulting work, and the risk management salary. There is a
decrease because in 2006-2007 the department was expecting to pay “catch-up” to PERS. Mr.
Tuneberg explained that the department planned well and therefore, the increase was
absorbed. The committee asked about the decrease for Buildings. It was answered that the
previous year represented Fire Station #2 and because the measure didn’t pass, it’s no longer
in the budget. It was also reported that there are no capital improvements budgeted for
municipal buildings this year.
Mr. Tuneberg continued with the significant budget changes. The changes include Human
Resources moving from Administrative Services to Administration, a cut in Fire Station #2 costs,
and a reduction in professional services. He also explained that a person from Administrative
Services moved to Administration and that an employee from Legal (Administration) moved to
Administrative Services. The employee from Legal is specializing in Claims Management.
Another change from the previous year is the inclusion of LID financing.
The service impacts of the cuts were reported as decreased studies and ad hoc reviews.
However, if Administrative Services is asked to complete a study then necessary funds will be
sought from City Council. Another impact is that administrative costs for project financing will be
rolled into the total cost and paid over time.
Mr. Tuneberg highlighted how the Administrative Services Department is funded. Mr. Tuneberg
explained that the department is paid by internal charges for services provided to the various
City departments. He also spoke about possible revenue sources and the impacts these
revenues might have on the public (see attached handout).
A challenge that Mr. Tuneberg reported was getting and keeping experienced staff. Mr.
Tuneberg explained that the Staff Accountant position was recruited for twice and that both
times, the recruitment failed to identify an ideal candidate. Mr. Tuneberg also spoke about the
challenge of the workload for audit, budget, project financing, rate model development and
insurance program reviews. Other challenges include finalizing the Transient Occupancy Tax,
increasing automated transactions to improve customer service, providing timely financial
reports and balancing credit ratings with capital needs and capped revenues. Mr. Tuneberg
predicted that with capped revenues, rising costs and aging fixed assets, the City will struggle
with finding good borrowing rates.
Councilor Hartzell asked about the changing Staff Accountant position. It was explained that an
Account Clerk moved to an Account Clerk II and that this individual will be trained to work at the
level of a Staff Accountant. Mr. Tuneberg also spoke about an Account Clerk who will be
BUDGET COMMITTEE MEETING
MAY 2, 2007 PAGE 7 of 7
retiring. The Account Clerk currently works at .75 FTE, however, due to the difficult hours and
the need for staff coverage, the position will be increased to 1.0 FTE.
Ms. Everson inquired about marketing the new internally-built software. Mr. Tuneberg
responded that it may be a possibility. Mr. Gregorio asked about the City of Ashland’s credit
rating and it’s comparison to other municipalities. Mr. Tuneberg explained that the City of
Ashland has a good credit rating and that the City buys insurance to guarantee timely
payments. Mr. Tuneberg explained that in the future, creditors will not only look at revenue vs.
expenses, they will also want a guarantee that the City is willing to raise rates to cover debt
service.
Mr. Gregorio also inquired about capitalizing the administrative costs for project financing and
how those costs are determined. Mr. Tuneberg answered that the project engineers help
determine the costs and if the engineers do not provide the information, then a percentage will
be used. Those percentages can vary and are also reviewed by consultants. Mr. Gregorio
commented that subjective percentages allow room for capitalizing additional City expenses.
Mr. Tuneberg reported that the percentages vary based on the cost of the project because the
same amount of work goes into all the projects. Mr. Levine asked if the auditors follow the
same capitalization standards. Mr. Tuneberg explained that the City has a capitalization policy
and that the auditors monitor the consistency of the policy. Mr. Tuneberg reported that various
departments are trained on these capitalization levels.
Ms. Stebbins called attention to page 3-37 and the $400,000 fringe benefit. Mr. Tuneberg
explained that it is the Insurance Services fund. He explained that 3 years ago, the City
anticipated a significant rate increase for PERS. All of the departments paid and that PERS
money was put into the Insurance Services fund. However, due to changes in legislation, that
money doesn’t need to be expended and therefore, the fund is still carrying that money. Mr.
Tuneberg also recommended that the money stay in the fund because of new worker’s
compensation legislation that looks likely to pass.
Ms. Thompson asked about the 20% increase in fringe benefits for Municipal Courts. Mr.
Tuneberg explained that in 2007, there was less budgeted for health benefits than should have
been. It was reported that the benefits for the previous Municipal Judge had not been expensed
correctly. It was also reported that fringe benefits will fluctuate depending on full-family
coverage or single coverage. Mr. Tuneberg said that the City pays 95% of health benefits and
that the employee portion is 5%. Ms. Stebbins wants to consider reevaluating the 95/5 split.
Councilor Hardesty agreed. Mr. Tuneberg explained that the employee percentage is
negotiated via the unions and each union is negotiated at a different time. Ms. Everson asked if
there is compensation for single family health care vs. full family coverage. The answer was no.
Everson/Levine ms to approve Administrative Services budget as presented. All Ayes.
ADJOURNMENT
The meeting was adjourned at 7:50 pm.
Respectively Submitted,
Miranda Iwamoto
Account Clerk II
Administration
Department
City Of Ashland
Proposed Budget for 2007-2008
May 2, 2007
Structure of Department
Administration has four divisions
Mayor and Council
Administration
Human Resources
Legal
1
Administration Department
Major Responsibilities
The Mayor and City Council are responsible for setting policy and
direction for all City operations
Administration coordinates all City departments, administers Council
policies, oversees intergovernmental relations, implements special
projects and coordinates City communications
Human Resources assists City departments in recruiting, retaining,
and supporting a diverse, qualified workforce. HR administers
benefits and shares responsibility for the safety and risk
management programs
Legal provides legal support to the City Council and all City
departments. Legal prosecutes in municipal court and handles all
City litigation
These budgets pay not only for people but for several Citywide costs
such as dues for SOREDI, RVCOG, NLC and LOC and the costs of
televising City meetings on RVTV
Administration --Major
Accomplishments in FY 2006-2007
Hired a new Community Development Director and
a new Police Chief
Supported City lobbying efforts in Salem and
Washington, D.C.
Coordinated work on several special projects, such
as exploration of interim library financing,
coordinated City work with Mount Ashland
Association, redevelopment of the Cromanand
Railroad properties, and public arts master plan
Completed union contracts for police and fire
2
Distribution of Budget
Mayor/Council
9%
Legal
26%
Admin
42%
Human
Resources
23%
Total Administration Budget: $1,623,631
Administration Department
Budget Over Time
$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
2006 Actual*2007 Budget*2007 Projected2008 Proposed
Actuals
Mayor/CouncilAdministration CSFAdministration GFLegalHuman Resources
* Includes Human Resources for comparative
purposes. HR budgeted in Admin Services
during FY 2006 and FY2007.
3
Mayor and Council
2008 Proposed Budget
$67,185, 36%
$117,090, 64%
Salaries and Benefits
Materials and Services
Total: $184,275
Administration Division
2008 Proposed Budget
$121,051, 19%
$115,889, 19%
$384,010, 62%
Salaries and Benefits
Total: $620,950
M&S - Central Services
M&S - General Fund
4
Human Resources Division
2008 Proposed Budget
$93,311, 28%
$245,980, 72%
Salaries and Benefits
Materials and Services
Total: $339,291
Legal Division
2008 Proposed Budget
$134,665, 28%
$344,450, 72%
Salaries and Benefits
Materials and Services
Total: $479,115
5
Administration -Significant
Budget Changes From 2006-2007
Human Resources moved out of
Administrative Services into Administration
Staff in Human Resources increased from 2
FTE to 3 FTE to handle increased workload
Human Resources budget for recruitments
increased to handle expected turnover
The training budget for the City Council was
increased to ensure that every Councilor has
access to training
Administration -Significant
Budget Changes From 2006-2007
Eliminated the $100,000 that was in
Administration’s general fund budget in FY 07
for “visioning”
Included $5,000 to complete the Public Arts
Master Plan begun in FY 07 (only $3,000 of
budgeted $7,000 will be spent)
Increased budgeted funds for outside legal
counsel to $93,800 to respond to specialized
legal issues and City Attorney transition
6
Administration Challenges for
FY 2008
Select a new City Attorney
Coordinate City funding for the Ashland branch of the
library if county funds are not available.
Coordinate major redevelopment efforts on Cromanand
Railroad properties.
Coordinate City planning for adequate transit services
Create programs that foster a positive work environment
that will reduce turnover and increase employee
satisfaction.
Initiate bargaining with the IBEW Electrical and the
Laborer’s union prior to contract expiration June 2008.
7
Administrative Services
Department
City Of Ashland
Proposed Budget for 2007-2008
May 2, 2007
Major Responsibilities of
Administrative Services Dept.
We do the accounting and financial reporting for the City and
Parks (including AR, AP, PR, FA and GL)
We provide billing and collection services for all city enterprises,
utilities and taxes including F&B and TOT
We provide support to the Municipal Judge and Court operations
We manage parking enforcement in the downtown core area (on
street and parking lots)
We do risk management -claims, insurance, training
We provide centralized purchasing & contracting assistance
Other –Financing, budgeting, debt management, rate modeling,
cost allocation plans, grants, business licensing, financial
software support
1
Structure of Administrative
Services Department
Operating Divisions: Municipal Court,
Administration, Accounting, Customer
Service, Purchasing, Insurance Services
Non-Operating Divisions: Band, Social &
Economic Grants, Miscellaneous, Capital
(Parks SDC & Open Space and Municipal
Buildings), Debt
Major Accomplishments in
FY 2006-2007
We successfully bid audit services
We appraised Mt Ashland Association assets
We converted to our home-built software for
utility billing
We revised our purchasing rules
We inventoried assets and updated related
insurances
We received the GFOA awards for budgeting
and financial reporting
2
Performance Measures -
Survey of Annual Budget Process
5
4.5
4
3.5
3
Document
2.5
Process
2
Presentations
1.5
Support
1
0.5
0
2004-052005-062006-072007-08
AverageAverageAverageTarget
ScoreScoreScore
Administrative Services/Finance
Budget Comparison
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
20052006200720072008
ActualActualBudget *ProjectedProposed
Personal ServicesMaterials & ServicesCapitalDebt
* FY 2007 Capital Budget included $2.5 million
to construct fire station #2.
3
Administrative Services Dept.
2008 Proposed Budget
$552,453, 15%
$1,524,591, 41%
$215,000, 6%
Salaries and Benefits
M&S - Operating
Capital Outlay
Non-Operating
$1,405,877, 38%
Operating Divisions
$1,200,000
Municipal Court
$1,000,000
Administration
Accounting
$800,000
Customer Service
$600,000
Human Resources
$400,000
Purchasing
$200,000
Insurance
$0
2006-20072007-2008
4
Non-operating Divisions
Social Service Grants
Econ. & Cultural Grants
Band
Miscellaneous
Parks Open Space
Municipal Buildings
Bancroft Debt
Notes/Contract Debt
$0$1,000,000$2,000,000$3,000,000
2006-20072007-2008
Significant Budget Changes
From 2006-2007
Human Resources (3.0 FTE) moved back to
Administration
Fire Station #2 construction costs removed
Analyst/Claims Manager moved from Central
Services to Insurance Services fund
LID financing (Bancroft Debt) added back in
anticipation that projects may be approved
Reduction in professional services
5
Service Impacts of Cuts
Appropriation levels and funding sources will
need to be identified before professional
studies and ad hoc reviews are pursued
Administrative costs for project financing will
be included in total cost and financed,
spreading payment for related costs over the
life of debt service
Revenue Choices for Committee
Most of the department is funded by internal
charges, increases indirectly impact rates
Municipal Court funding comes from citations
and related court costs and fines
Parking fees/fines could be raised to fund
courts, parking services and the downtown
plan, impacting visitors to the city core area
General licenses and permits increases
would impact business activities
6
Challenges for FY 2008
Getting and keeping experienced staff
Audit, budget, project financing, rate model
development and insurance program review
Finalize review of TOT and potential increase
Increasing automated transactions
Timely financial reporting
Balancing credit ratings with capital needs
and capped revenue streams
7