City Council Study Session Agenda and Packet 2014 04 08

Home Browse Search

Goals, Objectives, & Initiatives (continued) Begin review and re-write of City’s Fiscal Policy document. Implement changes to budget process and reporting as requested by City Council and City Manager. Significant Changes Significant changes included in the 2014 budget for the Finance Program include the following (with the impact of each noted in the following tables): 1. An additional Tax Auditor position approved in the 2014 budget. Justification: This position would audit compliance with the City's sales tax, use tax, and franchise fee sections of the Code. The position would also assist the Tax Manager with taxpayer training, outreach, licensing, and data entry.Annual audit revenue typically covers much more than the cost of the current tax auditor position and, in some years, the covers more than the entire Tax Administration Division. Although this position would not be auditing 100% of the time, we estimate that the position would generate enough additional audit revenue to more than cover the cost of the position for most years. 2. Funding for the Utility Billing Technician position (currently vacant) was transferred into a professional services line item, roughly equal to the wages and benefits of the vacant position, with the intent of outsourcing the entire utility billing function. Justification: Historically, the Finance Department has had only one Utility Billing Clerk position. With the recent increase in the number of accounts, increased requests for service, additional complexity expected with a change in utility billing structure and the change in software, and to provide a base level of redundancy, staff requested to replace the current vacancy with at least 1.5 full-time equivalents, and preferably with two full-time equivalents. The contractor that has been selected as an outsourcing alternative agreed to ensure they have two people on staff at all times who are intimately involved with the City’s billing process. The Finance Department could not attain this level of redundancy for this cost with in-house staff. The contractor also has experience with other utility billing structures and is a good resource to assist the City with the upcoming changes. Distribution of Operational Budget The operational budget for the Finance Program is distributed amongst nine (9) divisions within eight (8) funds, as follows: 2011 2012 2013 2014 Divisions & Funds (a)Budget Budget Budget Budget Administration & Accounting 218,990219,990249,430 267,130 Tax Administration 97,770106,340163,590 162,020(1) Total General Fund 316,760326,330413,020 429,150 Open Space & Parks Operations (b)38,53040,54042,180 52,640(1)