The URL can be used to link to this page

Home My WebLink About2010-05-03 Budget Committee MinutesBUDGET COMMITTEE MEETING MAY 3, 2010-PAGE lof 3 Budget Committee Meeting Minutes May 3, 2010 6:00pm Civic Center Council Chambers, 1175 East Main Street CALL TO ORDER The Budget Committee meeting was called to order at 6:05 PM on Monday, May 3, 2010 in Council Chambers at 1175 East Main Street, Ashland Oregon. ROLL CALL Mayor Stromberg was present. Committee members Everson, Jackson, Lemhouse, Navickas, Runkel, Silbiger, Slattery, Thompson, Stebbins and Voisin were present. Committee members Baldwin, Chapman, and Douma were absent. PUBLIC INPUT None. CITY RECORDER City Recorder Barbara Christensen presented the City Recorder budget for FY 2010-11. She spoke to City recorders duties. The City Recorders office takes care of the Council business, City Records, election of Council officers, and is a member of the Audit Committee. Ms. Christensen discussed the Budget Over Time (see slide). The City Recorders office has had little increase in the budget over the years. In 2008-09 there was an increase due to the purchase of a scanner. The Banking service and merchant service fees have also increased. The City Recorder budget is made of salaries benefits materials and services and has reduced budget materials and services as well as supplies in education. Ms. Christensen discussed the work for 2011. There will be continued work with records management as well as banking and merchant fees. It is a challenge to find ways to become more efficient with banking and fees. The Committee questioned how long banking contracts are. Ms. Christensen answered that currently there is a three year contract with the option of two one year extensions. The one year extensions are not automatic there is opportunity for both sides to end the contract. Ms. Christensen went over the performance drivers (see slide). The City Recorders office is driven by City Charter and Municipal Code, Federal and State mandates, accessing information and providing quality citizen service. The significant budget changes from FY 2010 include the increase cost of banking services and merchant fees this is due to FDIC insurance was raised by the Federal Government, more customers are using merchant services to complete transactions and still in the process of completing RFP for banking services. ADMINISTRATION, HR, LEGAL City Administrator Martha Bennett presented the Administration Budget. The Administration Department is in both the General Fund and the Central Service Fund. Ms. Bennett discussed the bar chart (see slide). Since 2007 the Administration Department the major changes in the budget have come from the programs that have been added such as the Library Program and the Economic Development Program. The budget has been pretty flat for the last four years. The proposed budget for this year is about $28,000 less then last year's budget largely because professional services have been dropped in both Legal and Human Resources (HR). The vast majority of each budget are people (see slides). BUDGET COMMITTEE MEETING MAY 3, 2010-PAGE 2of 3 Ms. Bennett discussed the work see coming (see slide). Most work is driven by the implementation of City Council goals. There will be orientation of new council members in January 2011. The Administration department will be working on three bargain union contracts. Administration will continue to manage health care costs issues. The Committee questioned the changes in contractual services. Ms. Bennett answered that it fluctuates because there was a change in how the City pays for television. The City used to spend about $100,000 a year televising meetings; the amount of meetings being televised has been cut. There was also a court ruling that changed the amount of money to be allocated. Ms. Bennett went over performance drivers (see slide). There are many program level responsibilities. One is employment related claims. The City is going to try and target policies of the types of claims that the City expects to have. Administration's goal is to try and be timely in response to Council direction and goals. Ms. Bennett discussed performance to budget (see slide). Both performance measures and budget reflect wide variety of activities of this department. Performance measures require the department to anticipate and plan. Staffing has been reduced over the last three fiscal years has made the department more reactive. Ms. Bennett spoke to the significant budget changes (see slide). Staffing levels have remained the same since last year in all divisions. Professional services budgets have been reduced particularly in Human Resources and in Municipal Court. The funding for outreach remains minimal and the library contract will increase by 3%. Mayor Stromberg proposed an increase in the budget for televising services in the amount of $12,575. Mayor Stromberg would like to make the government more responsible and comprehensive to citizens. In this year there is going to be four major projects underway. The projects are developing the economic strategy for the Community, the second is AFR watershed, third is city wide transportation and land use plan and the fourth is a comprehensive water security plan. In all of these projects the City tries to involve the public but is a struggle. Mayor Stromberg stated the proposed amount of money could be used for interaction between the Community and the four major projects by using twelve sessions of televised services within the year. The Committee suggested that the City get the RVTV demographics to help in this decision process. The Committee discussed the Reserve Fund. In order to build a Reserve Fund the City should save rather then spend otherwise there will be no Reserve Fund. The rules and regulations of the Reserve Fund will have to go to Council. Ms. Bennett stated that reason to create a Reserve Fund is to set money aside for some anticipated situation that the City cannot provide other resources for. ADMINISTRATIVE SERVICES Administrative Services/Finance Director Lee Tuneberg presented the Administrative Services Budget FY 2010-11. Mr. Tuneberg stated that the Administrative Services Department is one that has been pretty steady. In the department itself there is an operating side and a non -operating side which has transitioned over time (see slide). Mr. Tuneberg discussed the proposed operating and non -operating budget (see slides). Over half of the operating budget is salaries and benefits; the other is materials and services. On the non -operating side there is a little diversity. BUDGET COMMITTEE MEETING MAY 3, 2010-PAGE 3of 3 Mr. Tuneberg spoke to the work coming for FY 2011(see slide). The Administration Service Department will continue working on fiscal stability, city goal and outcomes as well as budgeting and auditing. The Department will be updating written polices both finance management and operating accounting. The Finance Department identifies working on reserves, risk management and bond covenants. Continued work with Departments will be done to ensure they understand their budgets and costing services. The Department itself does all the customer service for utility billing and also provides internal accounting support to all different departments. Mr. Tuneberg went over the Administration Service Departments performance drivers (see slides). Much of the Departments performance drivers are led by legal compliance. A department goal is to meet the accounting budgeting and customer service needs of the City. The Department will practice good government through legal compliance, meet all targets and provide good customer service. The significant budget changes from FY 2010 include reducing vacant managerial position pay in order to fund higher operating expenses to keep within target. The Department is currently in the process of reorganizing. It is important to try and keep all outside costs such as training and professional services to a minimum (see slide). In preparing for 2012 Mr. Tuneberg stated that the Department is always looking for better ways to do things. At times the Department struggles with workloads. There is a considerable amount of work that is on going for example accounts payable, budget, financial reports, requests from management and public. Mr. Tuneberg explained that dramatic changes in the budget may affect the ability for City Hall to stay open for a certain amount of hours. Mr. Tuneberg spoke to three corrections in the 2010-11 Proposed Budget document. The Committee questioned how the City can gage when too much has been cut out of the Budget. Mr. Tuneberg answered that as of now there is not a good gage. As the Department goes through the reorganization it will be easier to identify if there are any shortfalls and how to do things better. The Committee discussed the Reserve Fund and how to build it. One way to build a reserve is if you have excess in one fund transfer it. The Committee questioned whether or not it was a Council decision to take excess funds and put them into the Reserve Fund. Mr. Tuneberg stated that current GASB requirements are for Council to identify revenue streams are committed or obligated and if it is a Reserve Fund what revenues are going to go in and how it will be used. The Reserve Fund does require a policy decision. ADJOURNMENT The meeting was adjourned at 7:35 pm Respectfully Submitted, Melissa Huhtala Administrative Secretary 1 P'� se a�dget for2010-2011 May 3, 2010 L Budget Over Time $310,000 00,00 $290,010,O, $280,000 $270,000, $260,000 $250,0010 wui Actual li Actuu ll Budget get Projected Proposed --- -------------- Here's the work we see M:7, coming Un FY 2011 Challenge is to edlucate staff on rrds retentin Electronic storing of documents in order to save storage space and have access to docurnents Challenge is to find ways to be more efficieint with our bankiing services and support legislative changes, regarding fees associated with crit cards m Performance Dhivers I,u " in c, fludp,(-CH4-61m T),eOred Owcome A ail w oV P t rfo rm a n o", n nm 5, g, Omov, miiA,aiu wr upwk Mom M qwIvf,I-0 R /RmIk [a, -d 0, a Kwih,sko H-0 ku, 14h Suppi'O fijil mw I upm—pra"I N.m wil M,., im N,h, , r. Wp � jmj,�I( iiofi)hui,p4igmA A Ps -'b W, iiMk. aw"m � cWturf, 0 o Fkc6unrorxxmff1, #wjA,'j OF^* Budgeit reflects mandates set ,gip �Federal, i Sit�ate and Ci!ty legislation Significant Budget Changes 1�11611`i Mid FY 2010 The cost of �banking services and merchant fees hiave increased. This is due to a couple of things: * FUC , insurance was raised by Fed rail Government * In proicess of cornpleting RFP fc)r banking ser0ces More custarn ers are usiing merchant servuces to clornplete trainsactions W FAWQTIF Continue to, lolok for ways to be more cost efficient a 4 Administration Dlepiartment City Of Ashland Proposed Budg�et for 2010-2011 Pagies 3 3 W 3-13 and 4-66 $2,500,000 $2,000,000 $1 "500,0100 $1,000,000 $5010,0100 : LAII-11011,111 W."', FMX 20,07 AdualJ 20108 ActuM 2009 Actual 2010 Budget 2010 Pino�octod 2011 Propowl C"S MmywiCouncill n CS AdmWlstrsfiops m CS Humain F4"ources 0 CS Legal MI CVEewon0c (Wwel,opmoint 10 GE Muiniid$wl Coud 0 GF LK),vary 101 CW RV ry . ..... .. .... 2011 Plrqpos,ed Biudg�et $56,000, 41% 2011 Proposed Budget 1 Administration Division — Central Services Halmolm 20111 1 Proipoised Bludget Administration Division — General Fund $86,915, 45% 2011; 1 Proposed Budget Wurt,,z-jjm lesources, 2011 Proposed Biudet Municipal Court Eumm 2011 Proposed Bud�geit Legal $76,225,,19% 'Id, 91"1 A Heire"s the wark we see : LA qMl AIM • Implementation of City Cound goWs • Orientation of new City Council in January 2011 Bargain union contracts Confinue efforts to manage health care costs Continue transition to pefformance-baced budgieting Pe,rrmanice Drivers C("4110111 fludget Criteria Desirrol Ouwwne aiumlil'exfionumcc .. . .... .... F ImM all, SUN,, Mivumae ernployrnvim mWad dami, Ih'ifl ,Y",R/pP,Oyf(,'twul�Y, of pokcw,,n c �a y a, —mw r, ap,�5' Nq, � O�kn" 7[ a�vims mrqflmed m a 1W MumupA 'ode mofoh ptlniod M, nou we %gw bwl U of r,,asc% in h I 1 ga Pori m ofao� '9 mlml mum l -al of ai:4k,dirmcd uAses u) Mum Q OlmI14 1, . ........ . . peM �,000 populawn pet NOU ��a,mm, Vlm ad'� IN., Y , Pa ks, F1 F "z""I'Mul / Supjxm kw covmrw Leverage dw mraOgkhx or AsMand iypgClOU PO I nk 10 W"e" L"'4b1,4119F"b"+fly. : Val fl I aw'd aCpfm vnmiuf hOuhfivl "'C"vion serwe I A ,onionvinty -d mfouned Amul co �1'1� .. .. .. .... ................... . .. (A 011won SUPOLIV �"pcmdmvs "ho u uI �,,uwrumew mm�whml 4", %�Vffl mfinuumon �Owm =$M • Bioith performance measures and bud�get i reflect wide variety of activities of this Department • Performance measures require the Department ant�icipate and plan • Performance is driven by staffing levels, • Reduced staffing over the last 3 fiscal years has made the Department moire reactive Significant Bludg�et Changes from FY 2010i • Staffing levels remain the same in all divisionis. Staffing is becoml ing crcal in Municipal Court and Human Resources • Reduced professional services biudgets # Funding for outreach (tell evision, advertisemients, publications, etc) remains at minimal levels # Library contract wi�ll increase �by 3% W 1111011.1 Mill 11 Diepartm�ent has major �roile to, pilay in conitract negotiation and in addressing health care costs • Transition to performance-d riven budget should aiss,ist Council and Bu�d�get committee, I in setting piriloirities • Complete economic development strategy, and transition accoirdingly, Administration Deplartment City Of Ashland Contacts: Martha Bennett, City Administrator, (541) 5'-21103 Richard Appiceflo, City Attorney, (541) 55-2091 Parneia Burkholder I urner, Mu nicipall Court Judge, (541) 552 2 395 Tina Gray, 1-tuimiin Resources Manager, (541) 552 2101 IF 4 LMAIN Administrative Services Finance a:eDepartment City Of Ashland 2\\f\\#:\\}MW LVI . . ..� � . .. . . Admin. Services Department 2011 Proposied Operating Budget Materials and Services, $1,10i, 45% M Admin. Services Dlepartment2i'011 IL'A Propols,ed Non-operatingil Bu�dget Debt Service, $898,6�78 , 43% CapilM Projects, $400,000', 19% Here's theo wolrk wel seei 1! ALI I 011 coming in • Fisc6l' Stability — city goWs, & outcomes,' rate stuidlies, capital improvements and debt mianiagiement, performance measurements and costing servi,ces • Annua� Budget with both grants, cornpoliance, reporting • AnnuM audit, Financial Reporting, GASB 45, 51 & 54 cornpliaince, Financing CIP, refinancing when, beneficial • Labor contracts & other negotiations • Customer service & front COUnter work, billinig & collections, AUEAP, discouints & other programs • General Central Serviice wolrk for City and Parks, AcCOUnting, Parking, Payables, Payroll, Purchasing, Red Rag, Reportingi, Risk & Claims Managenient, Taxes IWA Performance Dirivers I of 2 V1461 Comirmill Budget Critols Mmirc-d Oulcome A,OWWVvrfovmnce Value .............................. . Federalt ond ... . .. . . . ..... . ....... . ..... I #vgvol Coniphanck - No -Adopt anomsof budget by June 30 Soude Mandates violationi ofOrc%,on including as p operky tax t aW get Hudpq Law, IRS, DOR Nvit1fin the Ipwagmpl hignits. or GAAP Accouiofl ing p%sue ta FR by t 2/31 followror�wSmag WN-7 rd-0—lip ........... " a I -yta!, erod, ..... ... ..... Operational J'ra LO%'jde pajrV.01yVioroe ;Asskoor minomohN riffloonciall Effi iency/1,4scmill! ' airimation on a firnelly eumm matits by �Ihe 126' work day. 111F.,4s (Traersparent A > R C PO CA 4 UAF'tej'rjy fil,aInCiIII condi6comi to Coupacd wiffiro 4,5 days 0, of the ood o( O h e month. 4j, Post Budget A CAVA documenti to iNcto to paono socceptance. cz Cotmpy with financial •'Fife. reports "Ah Ekwiroinic wn Oblhgm6ons amidi requirements imchAding M,jNjVjPj M,4j$ Bomd disclman c%, required 01" as fivotely boosis, Covengoml (7),ampareor A >Malke payinients peon dekotscrvice Q Aervfgonv�ive) schedules. J 1% Mpaurattsawaa�c°amjlm JLCSq,'jVv,% and cnagm nN So pporl sta Hing a nd %montroofly trar", .. .. .. ............ .... prepasedmess operatoom of U to rwauntain N "o I( S W Yb stair i.fyc, im ppmoned ON41 U.'Phorivied ("vents. Performance Dr'iverS 2 of 2 - I—" 1116e-1 "i"i 11-1111111111-11 - 'III "I'll 11 oirl Ut"mric $peirstiotW ............. -- ..... .. . . . . ..... .. . ...... Support Line aces's pay i lo III per ht bo r C ffid e ia cyl kcs I De pa t in ein Is - IPrrepim r e agilectnents WRh no grtii Z Ilefthh, AP and AR accorawly Amsut payabilm %vilhout bac win 411 6fmely basis charges iwmA by Vianywe eirrors. >M11I and colket utififiel an cycle baOs collecting 95% of ir"jers'awes wirhiin Mildays im.44 as loss ratio less % 5 J-4 evoluale/oblain Clficiiem cyN is k MarjAgie appropo"liste imurance level1q, A N112mi "110 Risk Inkoraflicies :-TrAck/Cost losse-S, Costi to dielpsiplinents. UX >Assust hi troiroing hine, staff to be %Afe„ protect the, pubIlic arid ......................... M i a � In izv p pF, I y a,h milkgr. Support Enterpriscs - >AimivaHy rniew irate i & J FAI Rates (Evceffimepubdir cost Alociahom plans. 5 dip y fisca� Vermice) VoirinwHy %tudy each niodell or Heafth eii rvery 3 - 5 years, V Goal is to reasonabily meet accounting, budgeting, custolmer service and debt management neeids,. • Good Government through Legal Compliancd and Custorner Service (external' and internal!) are KEY for all major categories; everything else is secondary, • We know we have succeeded when there are no reportabile violations. Significant Budget Changes ME fron FY 201 Oi • Reducing vacaagerial position pay was donei to fund higher operating expenses to keep within target • Kept training costs low, use auditors, for info • Kept professional services, low • Deferred equipment/software purchases • Citizens may noit notice these changes irnmediately but they can impact quality of work and level of legal coimplia�nice * Administrative Services is reorganizing in FY 20111, taking advantage of some changes in staffing, cross training where possible, developing flexiblillity. o The department will continue to lok at ways to provide ail or most of the priority s,e�rices and related service levels for less,, * Department laffs with rate model reviews, That is diriven by others, and may continue but we hiave increased internal reviews, and analysis in pireparation. * Fuituire reduced budgets will, require redUCtions in staff/hours available to the PUblindl wii'l ltengthien tirnIng between, studies, diminish OUr at to do internal reviews and/or best practices in interniM s,ervmce,