Finance Department FY 2020 Recommended Budget Joint Finance

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

Operating Budget 2

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 3

Finance Department Expense History By Fund Expenses (rounded) FY 2018 Actual FY 2019 Revised FY 2020 Recommended $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 29, 000 34, 000 37, 000 3, 000 - 49, 000 64, 000 24, 000 15, 000 Printing Services Fund 1, 495, 000 1, 561, 000 1, 595, 000 Workforce Invest. Fund - 126, 000 116, 000 $11, 811, 000 $12, 735, 000 $13, 129, 000 General Fund HOPWA Fund Supportive Housing Fund Other Housing Fund Total 4

Finance Department Expense History By Division FY 2018 Actual FY 2019 Revised FY 2020 Recommended $3, 908, 000 $4, 113, 000 $4, 370, 000 724, 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 $11, 811, 000 $12, 735, 000 $13, 129, 000 Expenses (rounded) Accounting & Analysis Budget Total FTEs 67. 25 5 67. 25 69. 50

Finance Department Expense History By Category Expenses (rounded) FY 2018 Actual FY 2019 Revised FY 2020 Recommended $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 Personnel 6

Finance Department 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 7

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 ($131 k) > 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 8

Finance Department Significant Changes From FY 2019 Budget • Add 1. 0 FTE - Collections Specialist ($101 k) > Pending retirement within 36 months > The two current staff each support an average of 1, 500 open cases. 4, 625 in total for FY 18, 2, 871 for FY 19 > Total annual collections in-house exceed $2. 0 m 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 9

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 10

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Finance Department 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 12

Finance Department 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 13

Finance Department 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. 14

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 ($70 k): § Collections, timekeeping, Planet Bids, Labor cost tracking for contracts, banking services, investment management, > Armored car services ($36 k) > Actuarial services ($32 k) 15