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Finance Department RestructureCopyrighted January 3, 2023 City of Dubuque Consent Items # 05. City Council Meeting ITEM TITLE: Finance Department Restructure SUMMARY: City Manager recommending approval to restructure the Finance Department. SUGGESTED Suggested Disposition: Receive and File; Approve DISPOSITION: ATTACHMENTS: Description MVM Memo Staff Memo Type City Manager Memo Staff Memo Dubuque THE CITY OF DR F� U �/ L All•Aaterica City nwxn 1 1 K F Masterpiece on the Mississippi � pp z°°'�*° 13 zoi720zo19 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Finance Department Restructure DATE: December 19, 2022 Director of Finance and Budget Jennifer Larson is recommending approval to restructure the Finance Department based on the need to reduce the workload of the Director of Finance and Budget, Assistant Director of Finance, and Purchasing and Risk Manager and create back-ups for each management position. The restructure would include retitling Director of Finance and Budget to Chief Financial Officer, reclassifying Assistant Director of Finance to Finance Director, reclassifying the second Assistant Director of Finance position to Budget Director, and creating a full-time Purchasing and Safety Coordinator position. In addition, the restructuring plan includes a consulting contract with a consulting firm to train the new Finance Director. The restructuring plan would increase the Finance Department personnel complement by 1.00 full-time equivalent. The reclassifications and the addition of the Purchasing and Safety Coordinator position would need to be analyzed by the Human Resources Department to calculate the related salary grade impacts. For the sake of this recommendation, it is assumed that the Purchasing and Safety Coordinator would be at the same salary grade as an accountant (GE-30) and that the Chief Financial Officer (GE-44), Budget Director (GE-41), and Finance Director (GE-41) positions will be paid the same as the positions they are replacing. The estimated cost increase includes recurring cost of $79,200 for the full-time Purchasing and Safety Coordinator and non -recurring cost of $32,000 for a consulting firm to assist with training new staff. The total additional cost of $111,200 would be covered by Finance position vacancy savings and the consultant services budget. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jml Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Shelley Stickfort, Human Resources Director THE CITY OF Dui E Masterpiece on the Mississippi TO: Michael Van Milligen, City Manager FROM: Jennifer Larson, Director of Finance and Budget SUBJECT: Finance Department Restructure Recommendation DATE: December 19, 2022 INTRODUCTION Dubuque 2007.2012.2013 2017*2019 This purpose of this memo is to recommend approval of a restructure of the Finance Department. BACKGROUND The Finance and Budget departments were consolidated in March 2019. Since that time, there has been significant and ongoing change. In July 2022, a second Assistant Director of Finance position was approved. In September 2022, the existing Assistant Director of Finance resigned. To date, neither Assistant Director of Finance position has been filled. In September 2022, a Limited Term Accountant was approved in Utility Billing, however the position has not been filled. The current personnel complement of the Finance Department is 22.51 full-time equivalents which is broken down into the following positions: Accounting: Type FTE Director of Finance and Budget Full -Time 1.00 Assistant Director of Finance Full -Time 2.00 Purchasing and Risk Manager Full -Time 1.00 Confidential Account Clerk Full -Time 1.00 Accountants Full -Time 2.00 Senior Payroll Accountant Full -Time 1.00 Budget/Financial Accounting Analysts Full -Time 2.00 Accounting Interns Seasonal 1.00 Budget: Budget/Financial Accounting Analysts Full -Time 2.00 Utility Billing: Utility Billing Supervisor Full -Time 1.00 Limited Term Accountant Full -Time 1.00 Account Clerk I Full -Time 3.00 Cashier Full -Time 4.00 Utility Billing Intern Seasonal 0.51 Total Full -Time Equivalents 22.51 DISCUSSION Based on the need to reduce the workload of the Director of Finance and Budget, Assistant Director of Finance, and Purchasing and Risk Manager and create back-ups for each management position to allow for coverage of vacations, conferences, trainings, and other planned and unplanned leaves, the following restructure is recommended: 1. Retitle Director of Finance and Budget to Chief Financial Officer 2. Reclassify Assistant Director of Finance to Finance Director 3. Reclassify Assistant Director of Finance to Budget Director 4. Create Purchasing/Safety Coordinator position Retitling the Director of Finance and Budget to Chief Financial Officer would not change the day-to-day duties of the current director. The Chief Financial Officer would continue to oversee the Finance Department operations, train, and mentor the Finance Director and the Budget Director and continue to assist with overall staff management. The reclassification changes would also allow the Chief Financial Officer to focus on department -wide and city-wide projects, such as implementing a new purchasing card provider that works well with the new system. In addition, a request for proposal will be developed for investment portfolio and debt management software that will integrate with the Tyler Munis software. Reclassifying the Assistant Director of Finance to Finance Director would align the position to the work required. The position is responsible for managing and directing the audit, writing the Annual Comprehensive Financial Report, presenting the financials to the City Council, implementing new Government Accounting Standard Board Statements, and managing, training, and mentoring accounting staff. Reclassifying the second Assistant Director of Finance to Budget Director would allow the Chief Financial Officer (formerly known as the Director of Finance and Budget) to focus on higher level budget projections and overall budget review rather than the preparation of the budget. In addition, the Budget Director would train and supervise the budget financial analysts and manage the overall budget process including facilitating all budget meetings. The audit process and preparation of financial statements occurs at the same time as the budget preparation process. A Budget Director would allow the Chief Financial Officer to be able to distribute time between both budget preparation and audit management and financial statement preparation. In addition, the Budget/Financial Analysts are new and require additional oversight and training than what can currently be provided by the Director of Finance and Budget. A Budget Director would be able to focus on the budget process and not have as many interruptions that the Director of Finance and Budget experiences. Creation of a Purchasing and Safety Coordinator position would provide necessary assistance to the Purchasing and Risk Manager. In addition to daily purchasing assistance, the purchasing and safety coordinator position would also be expected to assist with the City's current initiative focusing on the City's safety training programs and safety culture across all 2 900 plus employees given the Purchasing and Risk Manager currently oversees and leads the City's safety committee, incident review team, safety training committee and safety audit team. In conjunction to these activities, the Finance department is also in final review and preparing to make a recommendation to implement electronic bidding across the City. The intentions would be to have the purchasing and safety coordinator position provide necessary assistance to the Purchasing and Risk Manager with implementing and/or maintaining the electronic bidding process (depending on when the position becomes filled). One of the challenges with this restructuring plan includes training the Budget and Finance Director positions. The Chief Financial Officer would need to train the Budget Director in the off season of budget and audit (April -July). To alleviate this concern, it is recommended that a consulting contract be obtained with a consulting firm to train the new Finance Director during the months of April — July 2023. The estimated cost of training for four months is $8,000 per month or $32,000. If the restructure plan would be approved, the recommended personnel complement of the Finance Department would be 23.51 full-time equivalents and is broken down into the following positions: Accounting: Type FTE Chief Financial Officer Full -Time 1.00 Finance Director Full -Time 1.00 Budget Director Full -Time 1.00 Purchasing and Risk Manager Full -Time 1.00 Confidential Account Clerk Full -Time 1.00 Purchasing and Safety Coordinator Full -Time 1.00 Accountants Full -Time 2.00 Senior Payroll Accountant Full -Time 1.00 Budget/Financial Accounting Analysts Full -Time 2.00 Accounting Interns Seasonal 1.00 Budget: Budget/Financial Accounting Analysts Full -Time 2.00 Utility Billing: Utility Billing Supervisor Full -Time 1.00 Limited Term Accountant Full -Time 1.00 Account Clerk I Full -Time 3.00 Cashier Full -Time 4.00 Utility Billing Intern Seasonal 0.51 Total Full -Time Equivalents 23.51 BUDGETIMPACT If the restructure plan is approved, the reclassifications (Chief Financial Officer, Finance Director, and Budget Director) and the addition of the Purchasing and Safety Coordinator position would need to be analyzed by the Human Resources Department to calculate the related salary grade impacts. 3 For the sake of this recommendation, it is assumed that the Purchasing and Safety Coordinator would be at the same salary grade as an accountant (GE-30) and that the Chief Financial Officer (GE-44), Budget Director (GE-41), and Finance Director (GE-41) positions will be paid the same as the positions they are replacing. The estimated cost increase includes recurring cost of $79,200 for the full-time Purchasing and Safety Coordinator and non -recurring cost of $32,000 for a consulting firm to assist with training new staff. The total additional cost of $111,200 would be covered by Finance position vacancy savings and the consultant services budget. RECOMMENDATION I respectfully request approval of Finance Department restructuring plan. JML 4