HomeMy WebLinkAbout0474.093I~ r I
I september 23, 199)
THE HONORABLE CITY COUNCIL
Pale Alto, california
ll!!.!!!!lP DRrvp B!!DG1!'1' -Pl!OFOSEP PUOUICE DElAl!TJlEl!'l' POI!!!AT
Members of the Council:
bpcgt in Brief
This is an informational report; no council action is required.
The J'urpose of this re~rt is to provide the Council with an
overview of the proposed fermat Eor the Finance Department's
Mission Driven Budget (KDBJ.
Iacltgf cu l1d
At a council I5tudy session in JU'1e, 1993, council approved the
concept of a Mission Driven Budget. Each d~partment vas directed
to develop an MDB budget which puts emphasis on services and impact
measurements, rather than on the department's Qrganizational
structure.
The Finance Department is responsible tor directing the city's
financial operations: accounting, budgeting, long-term financial
planning, real property and investment portfolio :anagement,
collectj.on of revenue, pur-chasing, and printing and mailing
services. Finance is responsible for ensuring that the City's
financial matters are administered in accordance with all re.qulato
ry requirements, and are consistent with generally accepted
accounting principles. Furthermore, the department strives to
maximize the return on the City's financial and real property
assets in a manner consistent with the City'S investm~nt and real
property policies. The department provides printing and mailing
service.s to all City departments, as well as marketinq them to the
various hu.an services providers and other appropriate orqaniza
tions.
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Under the c'.1rrt!nt budget or9'anizAtion, the Finance DepartDlt:!-nt has
five divisions in addition to Administration: Accounting,
Treasury, Zudqet & Manaqem~nt Analysis, Purchasing. and Real
Estatea Finance is an administrative support department, and its
costs are allocated out to ot.hll:'!r city departlll.Qnts as. part of
qeneral administrative overhead a The Fir.a~~~ Department's
oper~tin9 budgat is $3.4 million~ Permanent stafting 1ncl~d~~ 6~
positions.
KDB Preql'lt
staff involvement from all levels of the organization in the
process of developinq the proposed MOB structure ~as oritical to
ensuring the accurate depiction of ~ervices provided to the
cOmDIunity and t.o other departments.. More than half of the
department staff vas significantly involved in discussinq,
d~veloping and revising the MOB p~oposal. Each functional area has
been thorouqh'_y eXamined and alternative structures carefully
conside.red.
The first step in the process was to identify all of the activities
that ~e department performs and services it provides (see
Attachment A). A comprehensive customer list was also d~yelope~
(Attachment B). Similar activiti~s, re9ardless of which of the
current bu,dqet divisions performed thel:l, were grouped together to
define functional areas. The process vas dynamic and iterative;
.anaqers Det cont1nually to discuss and revise functional area
definitions. As mission statements were developed fer each area,
functional area boundaries shifted and changed.
staff utilized the mission statements from the functional areas to
develop a succinct mission state:ment for the doapartment: "To
respo1\l5ibly -manage the city's financial r~sources; to report
tisely, accurate financial information: and to provide quality
service to the public, decision-makers and city departments.·
FUnctional areas were evaluated against that overall mission.
Once functional areas were defined, small groups tormed to de-se.!' ibe
the major activities within eaca functional area~ develop goals for
those activities, ~nd specify impact measures that would let the
public, the Council, and the employees themselves assess the
effectivenes$ of the proq't"aJDs. As the small groups pres.ented t~eir
work to the larger group, functional area boundaries aqain 'Were
redrawn, d'.le to the adltlinistrative. realities of timekeeping,
acoountinq and tracking required to retain levels of detaila since
many financial activities are highly proces.s-or-iented j s'tatf needed
to distinguish exactly where one process ended and the next began.
For example, a pa~ent received in Revenve Collections turns, at
some point, frQ~ a cash receipt to an accounting transaction.
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The Fir.ance Depa~tment initially defined 10 functional areas ~hich
seemed to clearly Qelineate the services the departru~nt provides:
Money Mz.n~.';~a.ent; 'Financial systQll\S Managell'ent; Budqeting and
Forecastinq; Financial Studies and Analysis; Fixed Asset Manaqe
ment; Accounting Services; Reports and Audits; Materials Management
and Contract Administration; Billing and Collections; ~nd Printing
a.nd Mailing Services. Theae functional areas 'Were presente4 to the
senior Manage~ent Group (SMG~ at the MDB retreat on August 16~
Feedback trOll SMG led the Finance Department to re-examine the
level of detail shown in the pro~sed MOB etructure. Sinca Finance
is an administrative department, it was sug~ested that the public,
the Council and other customers are not interested in the saJllle
level of detail as might be appropriate for a departJIent 'Which
provides services directly to the public. For example, the public
"!!:;,y i'iQ"C care to know when a customer payment changes .fro. an
account r~ceivable, to a cash receipt, to a posting transaction;
they care only tl1at their payments are received and credited to the
correct account. Finance staff again scrutinized its MDB proposal,
and consolidated activities to a hiqher level, reducing functional
areas from ten to four.
~nce pepartm&n~ Junctional Area.
The four fUnctional areas proposed for ~~e Finance Department are:
Financial Support Services; Asset Management; Financial Planninq,
Analysis and Reports; and Printing and Mailing Services. Goale,
activities and impact measures for each area are included as
Attachment C. As described in the previous se~tion, Finance has
attempted to present activities in a way that 'Will be meaningful
.for the public.. In most areas, tl1e activities are m.\lca .ore
detailed than the current divisional structure. For exampl~, in
the function,al area of IIIAsset Hanaqement,· separate budgets would
be aaintained for debt issuance, investments, and fixed assets
accountinq, as ~ell as for the other major activities in that area.
The first two activitie6 are now subsumed in the Treasury Division,
while the third (a ne'W area of responsibility) would not have been
called c!.!t for separ-ate presentation under the Accountinq Division.
The public or council can no. evaluate the cost of these individual
activities, rather than agqreqatlons of activities under divisions ..
A graphic illustration of hoW'the functional areas/major activitie&
cross the current Finance organizational structure is shown in the
accompanying chart~
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FINANCE DEPARTMENT
MJSSION DRIVEN BUDGET
r_Arooand .4a:nunl.ing Budeet and ~
Jl<oI_
T........,.
M>Jor Acti..u, Manac-Anal,.,..
1. F"....,.;..J Suppon _
A. F~iaI ~ Sttvicee " .-
B. k:co\m\iDg Serv\cea .-.-
c. Billin& ADd c.ou.ru"",
D. PtIn:ba.se Rt:quifl.itiOll Suvic: . ..
2. -'-dMuqan ....
A. Dci>t l8suuoe " .-
B. tD~ md BankiB, or .I'
C. Filed A.s:sebi A<:'COUD.1Jng .I'
D. :hal Proptr1y MerllS rllt
E. Mare.-iaJ. MaD.agauezrt
3. y ........... ~. Analysis and Reporu
A. Looc--.. r ..... w Plan-" .I'
aio&ADdF_
B. c...uJtiD, aDd Special .I' .I'
Studieo
C. Revcoue: and Expeodlcwc " or
AlWysU sad MooiJOriag
D. OpmotiD, ADd Cop;Ial Dud-.I' or
gdDevd"l' ......
E. !ludsd Peri.""...,. 11'1"'''' "
F. CAFIUY_ FAd .I' or
Qo.4;e!Audit
G. Extenool "-Audits """ " Reports
4-Po;nom, and Mam"" _
A. PrilItiDg Services "
B. Mallin, Servioetl .I'
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Reconciliation of cas~ and accrual income
Reporting on invest~ents
rrocking south Africa
Tracking of banks and savinqs and loans
~a.~':..!thorlLed list of brokers, banks, etc.
AnnUAl ~ash f.low
Bank contrac-c
Monitoring of b~nk te£~
Bidding bank ~ervices
Armored car contract
Safekeepinq contract
~~edit card contracts
Ordering bank supplies
Assisting other locations with bank issues
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New Council information on bank and inv~stments
Trackinq Authority for california Citieli Excess Liability
Trackinq Deterred Compensation funds
C. FIZZ!) U8nS lICCOOllTIlI(J
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Maintain and update Bristol Informa"tion Systells (BIS)
database for Enterprise Fund fixed assets
Main~ain and update IFAS database tor General Fund fi~ed
assets
Record additions, retire!Dents, acquisitions and. disposals
Calculate and adjust depreciation of assets
Monitor purchaseg, ~ork orders and capital projects for
completion
Conduct sc~eduled inventories
Monitor assets contributed to outside agencies
Reconcile BIS to the General Ledger quarterly
Prepare audIt schedules
Prepare year-end cost and depreciation reports for
Enterprise Fund fixed assets
Forecast year-end net book value of e!ectric# water, and
gas Enterprise Funds for calculation of Gener;:o,l FUnd
transfer
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Prepare financi~l and ~ork order/project status reports
for engineering ant! operations statf
Ac;gui:a:-B., lease, or sell property or property rights of
way for public USE" and improvement projects
Obtain, analyze and use data relating to property use,
'v"alue and location
Prepare or obt~in property appraisals
Prepare feasibility studie~
Neqctiate ~ith property owners/lessees/buyers
Prepare l~al documents and staff reports
Determine use and disposition of surplus property
Process easement vacations
Prepare and process Requests for Proposals for lease and
sale of City property
Obtain and interpret legal de.scriptions and title reports
Coordinate condemnation pr~edures
Process documents for county recordation and City filing
Initiate rent~l payments tor City as lessee and collect
rental payments to City as lessor
Inspect leased properties and contract :for property
sainte:-:t.ance
Ensure compliance wiL~ lease terms
Maintain updated insurance certificates for all leased
property
Inspect Below Market Rate (SMR) ur.its prior to ancS
following each sal~
Ensure compliance with BMR deed restrictions
Maintain data sheets, files and maps on all properties
and easements
Contract with conSUltants for special projects
Review and approve encroachment permits for City riqhts
of-way
Identify and ana lyre city-owned properties as potenti41
revenu e sources
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II. JIA'I'IIRIALB IIlUIl\GEHEllT
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Contract Administration and ~ompliance
Prepare bids, proposals and quotations and hold formal
bid openings
Review local, state
compliance citywide
Enterprise)
an..} federal rules and requlations
liaison (Disadvantaged Business
Maintain files tor prevailing wages, contractor's licens
in,j, and insurance certificates
Issue requiremeuts for affirmative action, insurance,
HAZ~T, bonds, etC4
~~n~ge ci~ywide contracts
Distribution Center
Citywide delivery services (Shuttle truck)
stores requisition processinq
Library book distribution
Inventory Control
Data entry or receiving and distribution
Annual physical inventory
Purchasing
Purchase of recycled products
Vendor proqriUts
Sourcing materials and services
Solicitation a~d evaluation of quotations I bids and
proposals
Vendor visitations and inspections
Data entry and ~ecords maintenanCA
Issue pu~chase orders (purchase order processi~9)
Records storage and Disposal
Microfilming and microfiche
Surplus Property Disposal
Auctions and sales
Warehousing
Maintain HAZMhT controls
Citywide packaging and shipping
Inventory security
Inspection and test.ing of received mater-ials and supplies
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3. PlaARCI:u. PLAKKXRG. ARALYSIS ABO REPOR~S
)I. LOIIG-2lUIGIt PliIAIICIJIL PL1<JIlIIlrG lUm PORIlc:ASTXIIG
Long-range forecasting {Economic Future study model, 10-
year torecasts for Refuse FUnd, utility us~re tax, etc~J
kionollic Outlook Committee
l.and use planning fiscal anal],"sis
Identification of new revenue sources
Fin~ncial trend .onitoring system
Appropriate Levels of Service Study
Economic Outreach Program
Fiscal i~pact analysis
mandates, etc ~ J
support
(State and
Debt financing teasibility analyses
federal
Wa't.er Recll'Ul:latiol'! Program feasibility analysis
Disposition or AB 702 ~vnies
budget,
Economic future study computer model maintenance and
reports
B. CORSULTING lUm SPECIAL STUDIFS
Inter!1al staff analyses of cost/benf:'fit, fe,-,sibility
Analytical support for departmental proposals
Analytical support for revenue options
Responses to special information requests and/or assign
ments from council
Sp.!cial reports to council on changes in man
aates/re9ula tions
Departmental operational and/or manaqement reviews
Responses to special information re~lests from the City
Manaqer's Office or the Finance Director
C. REVlIIIUE JIIIl) EDElmITtlRB JlliALYB 18 , XOliiTOBIJIG
Budget revenue forecastinq
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Periodic revenue analyses and reports
Monthly expenditure analyses and reports
Investigate and report on potential expenditure problems
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D. OI-IIRATING AND CAPXTAL BUDGE'!' DBVELOPMDrI"
Develop operating and capital ~udget guidelines
prepare and publish operating and capital budget docu
.eats
Update Municipal Fee Schedule
Prepare an ~verhead allocation process
Maintain citywide Table oE Orqanization
coerdinate personnel requests
Calculate citywide salaries and h~nefits
Review department budget requests
Calcl.~late various enterprise and internal service fund
rates
staff Finance committee budget hearings and provide
follovup
staff internal city Manager review of budgets and providoa
followup
staff Capital Improvement Program (eIP]
committee
Screening
staff U1":.i1i ties Advisory Commission and Planning Co_is
sion hearings on CIP Budget
B. IIl1DGBT PBRPOIUlANCE ItEPOll!l'S
Solicit i~pact measure information from depa~tDents
Compile impact measure reports for Council
Investigat~ impact measure dericiencies
Investigate va.lidit.y of il'lpact measures
~. CA7It/yBAlt-END CLOSE/AUDIT
Perform year-end closing schedul~
Coordinate year-end closing activities with other divi
sions/departments
Prepare audit confirmation letters; monitor responses
Review various accounting procedures and internal
controls with external audits
Prepare revenue and expenditure analysis
Prepare revenue and expenditures i3.ccrua1s
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Reconcile ye~r-end outatandinq encumb~ances
Reconcile prop=icta~j' ft.:~~s' p:-=perty I pJ ~n"t "!I_rid equi~
JIIent
Prepare scheuule of closed capital improvement projects
Reconcile annual stores inventory
Prepare various audit vork sheets and schedules required
by external auditor~
Update cost allocation plan to actual
Record AFproved year-end reappropriation requests
Record self-inSUrance liability for clai~s incurred but
not =eported (r:8NR)
Reconcile investaent account, interest receiva.ble and
i~t~r~st income allocation
Calculate inves~ment premium and discount aaortization
Prepare annual schedules of allvwance for bad deb~s
Prepare scnedule of year-end equity and fund balances
Prepare the City's Comprehensive A.~nual Fin3ncial Report
(CAFR)
Reconcile year-end report to counci 1 'With preliminary
CAFR balances
Respond to audit Jl!',anagement letter and single audit
findings
G. Bn'BlIJtU. MEIICY lIo00XTIl 100) REl'ORTS
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state Controller's report for Ceneral an~ Enterprise
Fwlds
State Controller~s report for Transportation Development
FUnds
SB 90 claim reimbursement to State
Annual street report to State Controller
Cas tax and maintenance of sffort audits
SF ~72 quarterly cash transaction report to Housing and
Urban Development CHUD}
Annual information returns to state fer nonprofit exempt
status
Single audit co~pliance report
Audits of Fede~al Emerq~ncy Management Agency (FEMA) and
ether federal qrant funds awarded to the City
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FIlIANCE DEPARTIIIlNT lIC'ZIVIT~BS
1. rI"'CI~ SVfPORT SERVICES
lI. l'DIUIC~ nSTIDIS SERVICES
Information systems management
Interactive Fund Accountinq System (IFAS)
Stores Inventory
Bank infol~ation/Position control/Smart DB dev~lopment
Interfaces
Electronic computer records retention
MicrofichinqJmi.crofilll!.ng of historical data
computer imaging systems
Disc manaqement
Financial systems developgent
!Iew system development consulting
Technical Ser/ices and training
Microcomputer training
Mic~ocomputer management for department
PC software use
B. &CCOtIJITUIG SERVICES
Payroll
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Employee henefits
Trade accounts payable
Travel expense vouchers
Reimburse:oents
Rebates
Recordinq accounts receivable write-orfs
Journal entries
Budget cha,ge requests
Budget maintenance
Maintenance ot utility billing accounts
1
I r Project and cost accounting
CIP project balances and contracts
HIP loan recot~ciliation and monitorinq
Federal fundin1 clai~s and control
>.., .~.
Reconciliation of reserves by subfund and utility
Expenditures analysis
Encumbrances
Bank reconciliations
Oepa~tAl IFAS reports
General Ledger a~ount establishment an~ maintenance to
General Ledqer
IFAS training classes
Recording daily investment transactions
Recording daily bank activity
Interest income allocation
Expendable trust and agency fund activities on City books
C. BXLLrRG. COLLBCT~O.8
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Monthly utility wsers tax collection
Utility users tax collection (telephone)
Transient occupancy tax (desk audit)
Collections of delinquent accounts
Cash processinq (approx. 350/400 items per day), record
ing of payments for dog licenses, taxi script, various
permits t documents, etc.
Coll.ctions contract ~anagement
Wait list maintenance
Acceptance of payments for acrounts receivable ~llled
invoices
Parking citation payments (walk in)
Parkinq citation customer service (telephone/written
cOlnllunication)
Parking citation mail processing
Collection activity for the following on & 30-, 60-, 90,
120-day cycle (includes letters, telephone calls, ~aking
payaent arrangements and usinq the se,'t"vic:es of ft proces5
servfl:rJ ~
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1099'9 to Int,ernal Revenue Service (IRS) and the Fran
chise Tax Board (FT8) tor non-emplo).-ec-compensat~on~
'W-2' 8 to IkS ana Fl'B for employee compensations
Quarte.rly sales t.ax report to State Board of Equalization
Golt Course corporation anuual financial reports
Public I~prcvement Corporation annual rinancial rePQrts
4. l'RXIITDlIJ AIID IIlULIIIG SBRVICES
A. l'RXIITING SBRVICES
Xerographic duplication
O!feet press duplication
aindery services
Forms ~anagement
Limited ~~phi~s services
Special printing activities:
DEpartment forms
citywide forms
Letterhead
Manuals
Envelopes
Flyers, brochures in one., tyO or three colors
Budgat document
Telephone directories
Utility bill inserts
Packets fo~ Council and special meetinqs
Administer Citywide convenience copiers
Provide services to intergovernmental and nonprofit
8'lencies
8. IlAILIJlG SERVICES
Process incominq U.S. mail and interdepartmental meil
Mail utility bills and all aepartmental outqoinq mail
Coordinate m~il delivery with shuttle operation
Proviae services to intergovernmental and nonprofit
agencies
Mailing tube operation
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ArTACIIHEN'1' B
council
Investors/Cl:-edi to!"s
All department&i~:p!c¥eC:l:Ioii.atiI.c~~
pin~nce division heads
Joint Powers
Finance managers and staff
Tenants
city Manager, city Manager, city Manager
Agenda Planninq qroup
Depart.ent Heads/Council Appointed Officers
Lessees/lessors
IFAS users
Grantees/Grantors
Public, citizens, ratepayers
othe~ qovernment agencies (County, statel
communitY/Stanfor~
Non-profit human services agencies
Palo Al~o credit Union
V_9ndorsJ suppliers
Businesses
External auditors
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P~amedic service billings
HaZardous .aterials billir.qs (HAZMAT)
community garden billings
False alarms billings
Property damage billin9s
Returned checks
Misc. billings
Utility connection notices
Public assembly bills
Preparation of monthly transient occupancy t~x report
Management of collection agency contract
Collection aqe~cy writeoff (annually)
Preparation of semi-annual accounts receivable writeoff
Review of cash handling procedures (citywide ~s neaded)
Parking permit sales (quarterlyfsemi-annual/annual) and
renewals
University Avenue pe~its (1,300)
California Avcnu~ permits (650)
Cash handling reviews for city depa~ents
Daily reconciliation of cash registers (4}
Reconciliation of various parking citations reports
Processing of utility payments --mail and. two night
depositories
Employee parkinq perm1ts
utilities payments and transaction processinq
'l,\rkinq district support
Iss"lJance of parking penJi ts
D. PURCHASE REQIIXUTXOII SERVICES
CM:R:474:9J
Review submitted purchase requ~5t forms
Enter Purchase requisitions
Log requests into system
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a. DKBT X.80urCB
Selection ot financial advisor/un~erwriter
Selection of trustee
Determination of for. of financing
Lease/purchase an3lysis
Preparation of official statement
sale of debt
Bond ratin<]s
Arbitrage compliance
Bond oovenants compliance
Loans of city funds
Trustee--ziicnit-oririii--ai'ld reconciliation
Reporting on debt issues
Refundinq analysis
Oebt paYlDents
Investaent of debt proceeds
Northern California Power Agency -california Arbit~aqe
Management Program (~~) investment tracking
Kecor.ding debt transfers
Requesting reimbursements from trustee
Pa~~nts to trustee
B. nrVES'l'IIEHTB, BANlCUlG
CMR:474:93
Developmerlt of investment policy
Development of investment strategy
Analysis of investment options
Maintain bank balances
Daily cash fl ow
Selectinq investmel,ts
Transfer of £unds
Documentation of investments
~e~ordinq investments and activities
Reconciliation of investments to safekeeping statemen~
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A brief description of each functional area follows:
1. rinDoc1nl support Services -cover-s the pr~es.sinq, recording.
and distriDution of information for city financial transac
tions. This includes the initiation, performance, and
conclusion of the t,r-ansi!ctions, from ini tiatinc; a purehaBe
request,. to processinq a bill, to aCCOtmt!nq tor paymf!!nts., and
to maintaining the computer system to track those transac
tion~. These activities are currently part of Purchasinq,
Administra+ivu., Treasury, Accounting an~ Bucget~
2. ~sset Hanagement encompasses manaqinq and maintaining
records for the City'S assets, inclUding cash, investment.,
fixed assets, real property and. supplies and materials. These
activities are currently spread among the four Finance
divisions of Treasury., Real Estate, Purchasinq and Acc.o:.i.i,tintt.
3. Financial Planning. Analysis ~nd Reports -covers financial
planning, special studies, onqoinq analysis and monitoring,
as well as .ajar financial reports such as ~he ComFrehensive
Annual Financial Report (CAFRJ and the operatinq and capital
budget documents. information affecting ~esource allocation
decisions is developed here. These activities are currently
perfo~ed by Admin2stration, Budqet, Treasury and Accountinq.
4. Printing and Mailing Service.s -includes the activities of
printing services and mailing services~ TheBe areas are
intern~1 service funds, providinq services to city depart
ments, and recoverinq their costs throuqh user charqes. °rbe
City also offers printing servic~s to other nonprofit organi
zations. These activities were distinct in nature and could
not reasonab~y be grouped with other activities.
The new qroupings not only allow the display of services in a
fOX1lat bas·e.d on type. of service., but als.o encourage staff fro1n
di-tferent divisions to cool.°d.inate their activities ana tc set goals
coope.t"atively •
.. jar Activities and x.pact Heasures
The aajor activities contained 'Within each functional area were
brought together from the department's original activit.ies listing.
Similar services were grouped. together under the functional areas,
taking into account the siqnificance of the resources (staft as
well as dollars} ded.icated to each. Actual costs and impact
measures may be tracked in the accounting system at a lower level,
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especially tor cross-departmental programs such as parking citation
processing in the a:~tivity ot Billing and Collections.
In developing impact measures, the department worked closely with
staff who yould actually be providing the related se~vices. This
resulted in measures that should be meaningful not only to the
plwlic and Council, but to the line-level workers as well. staff
endeavored tQ devel~p impact measures that will indicate how well
a service is being provided, f~cu~in~ on quality, timelin~ss and
effectiveness rather than workload ineasur('s.. Measures are not
i~cluded for everything done within a functional area, but reflect
service levels for the key activities verformed by the depart~e~~~
Staff attemptec:l to i.i.tili:a in.-!i'::;d.tors r~hwant to the public,
removing technical financial terms that 'Would not be understandable
to tb.e general reader~ In e.xample 'Would be in Accounting Services
where they ·close the booksw each month. Although any accountant
would know what closing the books inclujes r the public would better
understand "producing monthly financial reports~·
conclusion
The Finance Department involved all levels of staff in evaluating
the department's services from a mission driven budgeting perspec
tive~ Staff believes that the major activiey groupinqs ana impact
measures more accurately reflect the services provided by the
department, and all'OW' stafi, council and the public to obtain
useful information on the quality of those services~ Staff
welcomes Council input and suggestions on the Finance HOB budget
proposal.
Respe~fully submitted,
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LIBB'l DAME
Senior Financial Analyst
A~
City Manager
Attachments:
A Finance Department Activities
B Pi nance Customers
Dirp.ctor of Finance
C Finance Functional Area Activities and Missio~ Statements
Related Staff Reports: CMR:463:93
CMR:474:93 6
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A'I"lAClDU:!i"l' C
FlNA.'lfCE DEPARTMENT
MISSION DRIVEN BUDGE"f
Functional Area Activities and Mission statements
Departm&r~t Mission: To responsibly manage the city's financial
resollrCes; to report timely, accurate .tinancial information; arld to
provide quality service to the public... dncisioll-maJcers and City
cfepartJDents.
FUNCTIONAL AREAS
1. l'ilUi.Dcial SUpport Servic:aa
To process and record the ~lnancial transactions of the
city in a timely and accurate manner; to develop ;;nd
maintain rinancial systems in order to provide pertinent
inrormation to all users; to provide purchase requisi
ticn" .billing and collection serv1ces, while providing
customer satisfaction and maintaining regulatory compli
ance.
A. Financ:.al Systems services
CMR,474:9J
To manage and support the FilJance Department's informa
tion systems, including system maintenance and develop
ment, microcomputer utili,zation, records management and
~echn1cal training.
o To have x\ reduction in usaqe of paper attributable
to ima9inq/electronic computer retention.
o To have an averaqe rating of at least x on CUstomer
satisfaction Surveys.
o To develop and implement a computer replacement
policy that meets the microcomputinq needs of
Finance users.
B.. Accounting S,gro'ices
7"0 process financial data in .. timely and accurate
.JI4121~er, -to provide .financial .in.tormation a.~d an:~lysis tor
use in decision making at ~ll levels of city management
and to support user access to financial data ..
o Process &utom&ted bi-weekly payroll check~ within 4
working days after receipt of time caraa.
o T~ ploQuce final monthly financial reports for ~ch
fund type by the l.5th calendar day of the aonth~
o To pay 90-' invoices within 30 j,a:rs from ir.voice
date ..
o To achieve an average satisfaction rating of 4
(highest rating being 5) on various project acc~~nt
inq training class surveys.
o Ta process 90' of budget change requests (BCR's)
within 10 working days of receipt.
c. Billing and Collections
CMR:4H:91
To process cash receipts, and depos.i t JIIoney in a: prompt,
accurate and safe mannecl to bill, and provide .tor
collect-ion services in a t-iaely manner, and in accordar-ce
with legal restrictions, wbile maintaining customer
satisfaction.
o Issue 95 percent bill inqs .. i thin 5 working days
after receiving billing request from depart3ents.
o Collect the t.arget percentage of outstandinq ac
counts for the followinq receivables:
Paramedic xt
Driving Under Influence 60%
False Alarms 90%
Property Camage 75\
Miscellaneous (HAZMAT ~
Billings, e'to.) 9 0%
o To d.eposi t all cash receipts received by Revenue
Collections and Processing Center by the next work
ing day.
o Achieve an average satisfaction ratinq ot 4 .. 5 (of
5~OJ on customer service surveys.
o To record accurately cash transactions vithin :s
working d~ys after receipt of ~ocuments fro. tacili
tlelli~
00 Apply daily payments and adjustmants within one
workir.q day with 95 percent accuracy~
D~ Purchape Requisition Services
Provide accurate entry, maintenance and reaord keeping
ror the purchase requisitioning process.
o 100' of px-ocessible p..trc.~4se requisitions under $500
viII De initiated within Beven days from elate of
reoeipt in Purchasin9~
o Print all processible requisitions t~ purchase
oraers within three days of completion of Buyers.
7'0 acquire, .manage and JIIaintain t-he City's llSsets and'
related records to JtZaXi.llize both monetary and no.D
AVnetary beneLits~
A. Debt Issuance
7'0 obtain the best interest rates available on debt
issuance, to monitor and veriry fUnds being held by
trustees, to .l-DSUre prompt debt service paymenu and
compliance or bond or lease covenants ~
o To obtain an interest rate on debt issuance equal to
or better than compa~ably rated public enti~ies with
the same rating at the time of issuance.
o Complete bond covenants compliance verirication
report within 90 days of end of fiscal year~
B~ Investments and Bankinq
CMF;: 474:93
To i.nVdS~ funds in a safe manner while providing liquidi
ty and optlJ1li.zing yield in accordance with the City's
investment policy and administer the City's banJd.ng
agreeJllen t .
..... -
o Earn a yield equal to or greater than achievl!d by
the stat" Local Agency InvestJIent Fund (LAIF) pool.
o Naintain averaqe compe~sating balances not .ore than
5 percent in exce5S of the balances needed for
covering-bank services.
C. Fixed Assets Accounting
Maintain accurate accounting and cost data record!O oL 1111
IIssets procw.-ea or con:;;tr.Jcted by tbe c.ity, in order to
reLlect the true va,LIe or all elements or the city's
property and equipment and tbe true operatillg costs oL
utilities ( &l1c.erprlse funds through depreciation to
provide Lor appropriate general fund transfers, and to
ensure adequa.te replacement cost in case of da1ltage, lOBS,
or theft.
o close 90 percent of comple-ted Enterprise Pund and
capital Improvements program projects within 60 days
of completion.
o Post 100 percent of new fixed assets to the fixed
aliset,s inventory within 90 days of procur_ent and
record retirements within 90 days of disposal to
maintain an accurate inventory of the City's assets.
o Forecast the fiscal year-end net book value of the
fixed assets of the Electric, Gas, and Water Enter
prise Funds with e variance of less than 10 percent
1=2r fUnd to provide accurate projections of qeneral
fund transfer-s.
D. Real Property Management
Acquire, manage and dispose or real property, as needed
by cit'y deparbtents a~Jd .in accordance with Counci.l
direction, to achie\"'e the highest return (financill.l or
public benefit) at the least risk, and maintain accurate
and useful dat" on Clty-ovnect property for puxpose of
providing a central source ot in.tormation and determining
highest and best use~
o Routine acquisitions, dispoSitions, ease.ent vaca
tions ana lease: EstiMate reasonable time to pro
cess -qoa1 is to meet that time in 95 percent of
cases.
-, .
o Non-routine acquisitions, dispositions, vacations
and leases such as the followinq will have their own
impact ~~asures:
753 Alma
ZTT World Communications Inc. ea~ement
Tower and Middlefield well sites
William property
.Arastra house
Former ChUCK Thompso~ site
o Conduct 100 percent annual lease inspections and
follov-up; maintain 100 percent updated insurance
certificates; cOllect 100 percent rental payaents,
95 percent by due date.
~ Process :lOe :tIercent of 8MR (Below Market Rate)
deeds, SMA inspections, ~~~ lean d~uments to meet
closing deadlines.
o Maintain accurate, up-to-date data sheets and aaps
on 100 percent of fee-ownc..,ll properties and ;all
le.o::sed property.. Maintain accurate, up-to-date
crO!ss index files to be updated within 10 working
days of receipt of either the recorded document pr
the notice or recordation, whichever applies.
E.. Materials Manaqemcnt
CMR:474:93
Purchase and manage the acquisition o~ the City's
Materials !I"]d contracted services including planning,
purchasing, na.'1Jling, distribution, storage and SLUplus
disposal and provide cos~ effective agreements and
contracts that ~G&t local, state and federal laws, rules
and regulations in an efficient and courteous .manner.
1. Purchasing, Stores' Wareho·usinq
o Monitor the Stores inventory and improve annual
turnover by a minimum of 5 percent.
o ProYio1~ an annual physical inventory count that
is ~ithin 3 percent of related accounting
records.
o Maint~in inventory levels, tilling 98 percent
of materials requisitioned: within 2 days of
receipt.
2~ Con~ract Administration' compliance
o Incr~ase vendor parti~ipation in bidding pro
ceS3 by 20 percent on recurrinq contracts~
o Provide. that 100 percent of the City' a con
struction contract. ~re verified with state
licensing board requirements for the status of
a contractor's license.
o Assure that 100 percent of all construction
contract.s ha-:e ~"eaua.te insurance Msed on
current insurance requireaenta an~ ~~e neces
s.ary sureties by aonitorinq the ratings and
effective dates.
o Assure 100 percent of documents required are
within compliance of all local. .~~te 4nd
federal lavs, rules and regul&~ions in all bids
and proposals before the contract is awar~e~~
3~ Records storaqe , Disposal
o Dispose of 100 percent of expired records as
required by department retention schedules.
3. pitaDclal Planning, ADalysia aDd Report.
~ prepare financi.al and policy analyses; to prepare
timely, accurate financial reports; to provide .lt4nagement
and council flith accurate financial in.tormati.on and
forecasting to support sound resource allocation deci
sions.
A. Long-Range Financial Planning a~ Forecasting
T'o identity potential strategi.es for maintaining the
City's long term Linancial viability; An~ to identify,
retain, develop, and forecast the city's revenue sources.
B. Consulting and Special studies
Qffi:474:9J
~ perform financial, organizational and policy analysis
oL issues and proqr~ in order to provide .financial
advice to the Drganization and decision m4kers~
o $ value of savings identified in analysis projects~
c~ Revenue and Expenditure ~~aly£is and Moni·~rinq
To monitor revenues ~~~ expendituras on a regulAr basis
in or4er to ensure that anticipated expenditures do not
exceed' 4L1 tborized buagets or roreC'asted revenues, and
determine any potential filJancial problems regarding
revenue and expenditure trends.
'1'0 have adopted budget Ceneral Fund non-c1epartmental
revenue within 6\ of actual yee-r end results, and add)'ear
adjusted non-departmental revanue within ., of year end
results (excludinq unforeseen legislative or jiJdicial
rulinqs or changes from other agencies).
To have adopted budget General Fun:! eJBployae services
expenditures within 3' of actual ye~r end results, and
.idyear adjusted employee services expenditures within 2'
of year end resul~s (excludinq unforeseen legislative or
judicial ruli~gs or changes from other agencieg)~
D. Operating and Capital Budqet Development
To analyze operating and capi tal budget requests 'for
consistency ltit-h Ci.ty budget guidelilJes and to evaluate
the merits and alternative ~unding options o£ the
req-".Jests. To prepare budget documents IIhi~b suplJOrt City
aanagement and Council in allocating resources~
o To deliver the budget document to ccuncil at least 3
weeks prior to the first budget hearing.
o To obtain Excellence in Budgeting awards froID the
California Society of Municipal Finance Officers
(CSNFO} and the Governmental Finance Officers Asso
cia+:.ion {GFO~J.
E~ Budget Performance Reports
CKR,C74,93
To identi£y and report to managRZIIent and the City Council
011 i.lllpact measures and on issues relat""td' to budget
perLormance ..
o To delive~ quarterly impact measure reports to the
city Manager within 45 days of the close of each
quarter~
.!(
F. CAPR/Year En~ Cl~6e/Audit
~ close eacb fiscal year and compile financial records
in compliaJlC'e with Generally Accep~ed Accounting Princi
ples (GAAP) for preparation of the Comprehensive Annual
Financial Report and the associated external aualt~
o To obtain a clean (unqualified) audit opinion for
the city's annual financial statements.
o To have CAFR ready for publication by Noveaber 15.
G. External Aqency Audits and Reports
To compile financial records in accordlmce tdth specific
fOrlMt requireme.flts or regul.:tory and other external
agencies.
o To submit 100\ of external financial and statistical
reports by the required due dates.
4. PrlDtlD9.Dd Mal11D9 aervi= ••
TO provide quality printing and mailing services to all
City departments in ~ cost effective m~nner with .1nlaum
turnaround t"iJDe.
A. Printing Services
Tb provide quality printing services to all City de~
ments in a cost-effective manner with minimum turnaround
t:1_.
o Meet negotiated printing deadlines on loot of print
ing requests.
B. Hailing-Ser~ice"
CHP.:474:93
To provide ~iling services to all City departments at
the lowest possible cost ana in an erricient .anner.
o Process 100\ of regular outgoing D. S. mail within
one working day of receipt in the mailroom.
.44
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