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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. CMR:474:93 , ..... .,.. . . 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. CKR:474:9l 2 ~-.. -... ~------- • 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~ CMR:474:9J 3 .' , 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' CMR:4H:93 t ! i -~ . - 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 . "", New Council information on bank and inv~stments Trackinq Authority for california Citieli Excess Liability Trackinq Deterred Compensation funds C. FIZZ!) U8nS lICCOOllTIlI(J CMR:474 :93 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 5 I I ! i i , D. CMR,474;93 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 6 .', \. ; I II. JIA'I'IIRIALB IIlUIl\GEHEllT CI!R:474:93 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 7 . I --:" "'/'" 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 CMR:474:93 Periodic revenue analyses and reports Monthly expenditure analyses and reports Investigate and report on potential expenditure problems 8 ... £,0 ."'" ',"'. it:. ~...;..;.:..~ ... S~~ ::3.:~~ 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 CMR:474:9~ 9 ~ ... ~ ~ ~."i'i·'·'"C' ..... ~ <' \ 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 0IR:474:93 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 10 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 CHR:474:9J 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 CHR:474:)) 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 ~ 2 ;; .' ';"-, .r-' -.;:-"...... '", .. - 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 CMR:474:93 11 CMR:474:93 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 I 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 J -~---. 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~ 4 ~-------- , -,.:;., -.. / .. \. '- . , 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, CMR: 474: 93 5 ." I ! I 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, ~~ 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 • 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 ........ f : ~: .