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Finance Department Fiscal Year 2018 Budget PresentationCopyright 2014 City of Dubuque Public Hearings # 3. IT EM T IT LE:Finance Department Fiscal Year 2018 Budget Presentation SUM MARY: SUGGEST ED DISPOSIT ION: ATTACHMENTS: Description Type Rec ommended FY18 Financ e CIP Supporting Documentation Rec ommended FY18 Financ e OP Supporting Documentation 386 DEPARTMENT:STATE PROGRAM:PROJECT TITLE:PROGRAM:6C TOTAL PROJECT COST Finance General Government Major General Ledger Software Upgrade DEPARTMENT:74 FD/CIP NO:102-2601 $10,000 2016 ACTUAL EXP 2017 AMENDED BUDGET PROJECT BUDGET 2017-18 2018-19 2019-20 2020-21 2021-22 BEYOND 2022 A. EXPENDITURE ITEMS Software $10,000 $1,500,000 $—$—TOTAL $—$—$—$—$10,000 $1,500,000 B. PROJECT FINANCING DRA Distribution $10,000 $1,500,000 $—$—TOTAL $—$—$—$—$10,000 $1,500,000 PROJECT DESCRIPTION This project provides for a major general ledger software upgrade to Finance Plus and Community Plus. JUSTIFICATION The City has used SunGard Public Sector for general ledger financial software since the 1990's. The City would evaluate other general ledger products to compare cost and features. The Budget Director would like a more robust budgeting module than what is currently offered within SunGard's current financial suite. There may be an opportunity to combine other software packages under one product (such as parking tickets, permits, etc.). The cost to switch to an alternate vendor (such as People Soft) could be considerably higher in cost and would be budgeted over a two year period. RELATIONSHIP TO OTHER PROJECTS This project implements the Comprehensive Plan's Infrastructure Goal Nine: To provide, maintain, and improve a cost-effective and functional data and information processing system, objective 9.3) Encourage the use of data processing technology and advances to improve service delivery and increase employee productivity within the City organization and City Fiscal Goal Six: To improve City government productivity and service delivery and identify alternative means of service delivery, objective 6.1) Review all City services and programs for operational efficiencies to improve service levels and delivery, and/or to implement cost containment measures. RELATIONSHIP TO SUSTAINABILITY PRINCIPLES This project implements the Sustainable Principle of Community Knowledge. -59- Finance -60- This page intentionally left blank. -61- FINANCE DEPARTMENT Budget Highlights FY 2016 Actual FY 2017 Budget FY 2018 Requested % Change From FY 2017 Budget Expenses Employee Expense 1,310,011 1,392,292 1,415,324 1.7% Supplies and Services 709,797 670,578 706,341 5.3% Franchise Fee Rebates 482,553 900,800 579,608 -35.7% Machinery and Equipment 3,285 10,980 14,870 35.4% Non-Expense Accounts (3,091)——0.0% Total 2,502,555 2,974,650 2,716,143 -8.7% Abated Debt - Franchise Fee Litigation —208,158 202,906 -2.5% Total Expense 2,502,555 3,182,808 2,919,049 -8.3% Resources Miscellaneous Revenue 72,123 63,900 77,795 21.7% Overhead & Utility Billing Recharges to Enterprise Funds 930,260 1,020,404 1,327,314 30.1% Water Meter Service Recharges 156,437 174,607 154,853 -11.3% Investment Mgr / Custodial & Financial Service Fees 92,985 95,000 95,000 0.0% Total revenue 1,251,805 1,353,911 1,654,962 22.2% Property Tax Support 1,250,750 1,828,897 1,264,087 (36,555) Percent Increase (Decrease) with Investment Manager & Banking Fees & Franchise Fee Debt -30.9% Percent Increase (Decrease) without Investment Manager & Banking Fees & Franchise Fee Debt -36.7% Personnel - Authorized FTE 17.74 17.74 17.74 Improvement Package Summary 1 of 1 This improvement package provides funds to purchase a grant management software package to assist in searching for new grants and managing existing grants. The reporting, tracking and auditing requirements for grants has become more stringent and demanding. The City is currently managing over 50 grants. The City currently does not have a centralized system to track, manage and report grants. The process now requires multiple excel spreadsheets, maintained by each department, and the manual transfer of data from financial system reports into spreadsheets. The data from the departments’ spreadsheets is then combined into a spreadsheet for SEFA reporting, and a separate spreadsheet for CAFR accruals. The grant software would interface with the City’s FinancePlus financial software and upload data, thereby eliminating chance for human error. Centralized reporting would allow all grants to be tracked, managed and reported in one consistent manner allowing organizational wide transparency. It would allow collaboration among all departments involved in the grant lifecycle from pre-award, budgeting, spending, yearly financial and compliance reporting, to final closeout. Additional benefits available in a grant management software package is the ability to easily research new grant opportunities and increase our funding scope as well as access to applications of other successful grant recipients. Software packages also contain central repository of federal and state grant -62- requirements, and an element of grant management training. Both would be beneficial as departments new to the grant process research and manage grants. A grant management software would help the city in their goal of being financially responsible and a high performance organization. Related Cost:$13,000 Tax Funds Non-Recurring Recommend - Yes Related Cost:$33,000 Tax Funds Recurring Related Revenue:$5,900 Administrative Overhead Non-Recurring Related Revenue:$14,977 Administrative Overhead Recurring Net Cost:$25,123 Property Tax Impact:$0.0106 0.10% Activity: Accounting/Payroll/Treasury Significant Line Items Employee Expense 1. FY 2018 employee expense reflects a 2.0% wage package increase. 2. The Iowa Public Employee Retirement System (IPERS) City contribution is unchanged at 8.93% and the employee contribution is unchanged at 6.18% in FY 2018. 3. The City portion of health insurance expense is unchanged from $1,325 in FY 2017 to $1,325 in FY 2018 per month per contract. 4. Sick leave payout decreased from $8,758 in FY 2017 to $1,376 in FY 2018. 5. Overtime is unchanged from $16,122 in FY 2017 to $16,122 in FY 2018. FY 2016 Actual was $23,564 Supplies & Services 6. Electric Franchise Fee Refund decreased from $837,000 in FY 2017 to $538,000 in FY 2018 due to a non-recurring budget of $300,000 for a lawsuit brought by 18 manufacturing plaintiffs seeking rebates back to 2009 in FY 2017. 7. Gas Franchise Fee Refund decreased from 63,800 in FY 2017 to 41,608 in FY 2018 due to a non- recurring budget of $22,000 for a lawsuit brought by 18 manufacturing plaintiffs seeking rebates back to 2009 in FY 2017. 8. Postage and Shipping decreased from $134,063 in FY 2017 to $116,504 in FY 2018 based on FY 2016 actual of $163,532 less postage purchased at the end of FY 2016. 9. Data Processing increased from $74,439 in FY 2017 to $76,075 in FY 2018 due to the increase in employee cost of Information Service employees that maintain the City’s computers. 10. Credit Card Charge increased from $55,500 in FY 2017 to $75,000 in FY 2018 based on FY 2016 actual of $85,929 less the amount of use attributable to the week that the financial system crashed in June 2016. The Finance Department absorbs credit card fees for City departments (excluding Library, Landfill, Parking, Airport and Leisure Services). Approximately 56% of this line item is offset with revenue from credit card fees assessed on online credit card transactions. -63- 11. Audit Services increased from $28,425 in FY 2017 to $37,000 in FY 2018 based on FY 2016 actual of $31,929 plus additional fees to audit federal grants. 12. Bond Paying Agent Fee increased from $15,725 in FY 2017 to $20,150 in FY 2018 based on an increase in fees. Machinery & Equipment 13. Equipment replacement items at the maintenance level include ($14,870): Accounting/Payroll/Treasury (2) Chairs $600 (1) Calculator $170 (1) Desk Phone $250 Utility Billing/Parking Tickets (2) Chairs $600 (1) Desk Phone $250 Recommended Improvement Package $13,000 Total $14,870 Debt Service 14. Debt Service includes: Amount Debt Series Source Purpose Final Payment Call Date $202,906 2016A G.O.Debt Levy Franchise Fee Settlement 2035 2024 $202,906 Total Finance Debt Service Revenue 15. Penalties increased from $20,350 in FY 2017 to $20,799 in FY 2018 based on FY 2016 actual of $20,724 which represents administrative collection fees and administrative fees for tax liens. 16. Credit Card Fee increased from $32,000 in FY 2017 to $42,000 in FY 2018 based on FY 2016 actual $35,473. This revenue offsets 56% of the Credit Card Fees expense line item. 17. Revenue received from Enterprise Funds for Utility Billing and administrative overhead charges is increased from $1,020,404 in FY 2017 to $1,327,314 in FY 2018. -64- This page intentionally left blank. -65- FINANCE DEPARTMENT The Finance Department provides the City Council, City Manager, City Departments, Boards and Commissions, other governmental agencies, vendors and the public with reports and financial data that is accurate, timely and meaningful and which satisfies the need for sound fiscal policy formulation, efficient City financial management and full disclosure of City finances. SUCCESS IS ABOUT PEOPLE, PLANNING AND PARTNERSHIPS LEADING TO OUTCOMES -66- FINANCE DEPARTMENT The Finance Department is supported by 17.74 full-time equivalent employees, which accounts for 48.49% of the department expense as seen below. Overall, the departments’ expenses are expected to decrease by -8.29% in FY 2018 compared to FY 2017. Expenditures by Category by Fiscal Year -67- FINANCE DEPARTMENT Financial Service Overview Financial Services provides financial policy, cash management, debt management, accounting, payroll, accounts payable, purchasing, risk management, grant assistance, auditing and reporting for the City of Dubuque. Administration: Includes oversight and support for all activities in the form of administering the financial functions for the City of Dubuque. Risk management, loss control review, property, machinery and equipment coverage, pollution liability, builders’ risk and liability insurance coverage. Accounting: Maintains the financial system to record, summarize, verify and analyze financial transactions. Discloses information in an understandable manner that facilitates financial interpretations, opinions and conclusions. Services include treasury management, accounts payable, accounts receivable, payroll, purchasing coordination, and risk management. Annual operations are documented and summarized to satisfy reporting needs, expenditures are reviewed and audited, payroll data is assembled, audited and updated for processing into the general ledger system, and both calendar and annual records are maintained for accountability. Accounting Services provided for two other agencies affiliated with the City, Dubuque Initiatives and subsidiaries and Dubuque Metropolitan Area Solid Waste Agency (DMASWA). Grants: Review City-wide for timely draws of Federal, State and private grants. Prepare reporting for annual single audit requirements of Circular OMB 133 and the Schedule of Expenditures Federal Awards (SEFA). Treasury: Receipt and deposit revenues daily, insure cash available for daily operations, invest excess cash and establish custody of all holdings, and oversee debt service payments. Audit/Reporting: Prepare state mandated reports; Annual Financial Report, Street Financial Report, Outstanding Debt Report, and Annual Urban Renewal Report. Prepare the Comprehensive Annual Financial Report (CAFR) for both the City of Dubuque, and the Dubuque Metropolitan Area Solid Waste Agency. Conduct internal operational audit reviews as required. Ensure all transactions and reporting is in conformity with generally accepted accounting principles (GAAP). -68- FINANCE DEPARTMENT Financial Service Funding Summary FY 2016 Actual FY 2017 Budget FY 2018 Requested Expenditures $1,494,415.06 $1,919,638 $1,656,138 Resources $331,894.41 $395,029 $515,765 Financial Service Position Summary FY 2018 Finance Director 0.90 Assistant Finance Director 1.00 Purchasing Coordinator 1.00 Accountant 1.50 Account Clerk 1 2.00 Payroll Specialist 0.70 Secretary 0.75 Intern 0.49 Total FT Equivalent Employees 8.34 Highlights of the Past Year Earned the Government Finance Officers Association Certificate of Excellence in Financial Reporting for the Comprehensive Annual Financial Report (CAFR). Received an external unmodified audit opinion that the financial statements fairly state the financial position of the City. Future Initiatives Increase volume of purchase card transactions to maximize the rebate revenues available to the City. Rebate goal is $13,000 with 5% increase each year for next five years. Implement and online employee time sheet entry system Complete a financial system upgrade Streamline accounts payable workflow for the entire city -69- FINANCE DEPARTMENT Performance Measures Financial Services - Activity Statement Preserve the City’s strong financial condition through responsible financial strategies and effective management of City resources. Goal: Financially Responsible & High Performance Organization Outcome #1: Maintain public confidence in City of Dubuque financials by ensuring the City operates in a transparent manner while complying with applicable rules and laws. Publish monthly expenses, revenue (http://www.cityofdubuque.org/1235/Financial- Reports) and annual salaries. External auditor’s opinion provides reasonable assurance that financial statements were prepared consistent with generally accepted account principles, and that the information is presented fairly, without any material misstatements. The Certificate of Achievement for Excellence in Financial Reporting represents the City’s commitment to clear, concise and easily understood statements. DID YOU KNOW? The City has received the Certificate of Excellence in Financial Reporting for 28 consecutive years and has applied for the certificate for the 2016 CAFR. Outcome #2: Invest City funds to achieve three primary goals; preservation of principal, liquidity, and fair rate of return. The City’s investment policy is certified by the Association of Public Treasurers of the United States and Canada. The City has an Investment Oversight Advisory Committee made up of five independent outside individuals from the community to monitor investments and compliance with investment policy. The City uses four investment management firms to maximize professional expertise and to diversify investment options within the investment policy. Calendar Year Total Dollars Under Management (1) Average Returns (2) 2016*$25,788,811 144.00% 2015 $26,504,917 81.00% 2014 $26,419,657 1.60% 2013 $27,639,521 -0.10% Relationship to Financially Responsible Government: The Finance Department treasury function maintains multiple checking, savings, and professionally managed investments to ensure compliance with bond, grant, and agency requirements, as well as meeting the City’s liquidity needs. 2012 $27,742,952 1.47% 2011 $27,484,123 3.39% (1) Market value (2) Gross of fees *Through 10/31/2016 -70- FINANCE DEPARTMENT Outcome #3: Provide electronic payment practices for sustainability, efficiencies and better service to vendors, citizens and employees. Encouraging the use of e-payment, e-deposits and e-statements to save the City processing and mailing costs, reducing the environmental impact of issuing and mailing paper documents, and providing a safer and more efficient payment method for our vendors and employees. The City administers a purchase card program and direct deposit option for accounts payable to reduce the volume of paper checks printed and mailed. Vendors benefit from quicker access to funds. The payroll department offers direct deposit and e-vouchers for employees to receive payroll checks electronically. Citizens benefit from lower tax dollars used to pay for labor, checks, envelopes and postage Purchase Cards Accounts Payable Fiscal Year Total Transactions Total Dollars Total E-Checks Total Dollars 2017*4,153 529,310 2,749 20,021,274 2016 11,712 1,445,038 1,163 16,620,395 2015 11,179 1,350,157 578 2,489,584 2014 10,705 1,274,257 495 85,700 2013 9,713 1,074,625 359 86,925 2012 9,237 1,018,743 920 125,504 2011 2,196 270,019 602 69,888 *Through October 2016 Utility Services Overview Utility Services is responsible for maintaining positive customer relations for over 23,000 customers. Utility services include water, sewer, stormwater and refuse. Utility Billing staff work with customers answer questions, schedule service, solve problems and collect payments. The billing activity manages the customer data base and depository for all utility billing and parking violations. Bills are computed and issued, and monies are received and recorded. Staff is available to address customer's service needs and billing inquiries. Utility Services Funding Summary FY 2016 Actual FY 2017 Budget FY 2018 Requested Expenditures $1,006,497 $1,055,012 $1,060,005 Resources $1,006,497 $1,055,012 $1,060,005 Utility Services Position Summary FY 2018 Finance Director 0.10 Utility Billing Supervisor 1.00 Accountant 0.50 Account Clerk 1 1.00 Cashier 5.00 Water Meter Inspector 1.00 Water Meter Service Worker 0.80 Total FT Equivalent Employees 9.40 -71- FINANCE DEPARTMENT Highlights of the Past Year Key West Twin Ridge Water system transition to city billing Future Initiatives Upgrade customer information and billing software Improvements in E-billing Performance Measures Utility Services - Activity Statement Provide quality service to utility customer through prompt response to customer requests, accurate receipting, recording, and safekeeping customer accounts. Goal: Environmental Integrity Outcome #1: Customers have access to a website to check water usage. Empowers the customer to monitor use, identify leaks quicker, become more sustainable, and lower their bill. DBQIQ is a water management website that the City offers free of charge to the customer. This website allows customers to monitor their water usage on a daily basis, and set up automatic alerts if the water consumption falls outside of normal average usage. This service was implemented in September 2013. To date 979 customers, or 4% participate. Actively promote DBQIQ to achieve 5% participation by June 30, 2017, and increase by at least 1% annually. DID YOU KNOW? A “running” toilet can waste 200 gallons or more of water every day? That is 6,000 gallons a month and could add $60 to a utility bill -72- FINANCE DEPARTMENT Goal: Financially Responsible & High Performance Organization Outcome #2: An accurate and timely utility billing process. Accurate accounting of water usage and assisting customers ensures timely revenue collection. Efficient customer assistance Multiple payment options * Mail or deliver payment to City Hall Utility Billing. * Credit/debit card payments * Online bill pay * Automatic bill pay DID YOU KNOW? Approximately 23,000 utility bills generated monthly Outcome #3: Promote e-billing The City offers e-billing which allows customers to receive their bill by e-mail rather than postal mail. February 2017 an upgraded, a more streamlined option, will be available to encourage higher participation. The City website enables customers to both view and pay their bill online. E-billing and web payment save paper, postage, and labor costs. DID YOU KNOW? Customers have online access to their current and past billing, payment and consumption history E-Bills provide convenience to customers and provide cost savings to the city. -73- Recommended Operating Revenue Budget - Department Total 74 - FINANCE DEPARTMENT Fund Account Account Title FY15 Actual Revenue FY16 Actual Revenue FY17 Adopted Budget FY18 Recomm'd Budget 100 51178 CREDIT CARD FEE 30,953 35,473 32,000 42,000 100 51215 PENALTIES 19,473 20,724 20,350 20,799 51 - CHARGES FOR SERVICES 50,426 56,197 52,350 62,799 100 53201 REFUNDS 0 413 0 0 100 53530 SPECIALIZED SERVICES 3,000 3,000 3,000 3,000 100 53605 MISCELLANEOUS REVENUE 470 464 550 467 100 53610 INSURANCE CLAIMS 47,595 0 0 0 100 53620 REIMBURSEMENTS-GENERAL 9,206 11,531 8,000 11,529 830 53620 REIMBURSEMENTS-GENERAL 0 518 0 0 53 - MISCELLANEOUS 60,271 15,926 11,550 14,996 100 59100 FR GENERAL 6,000 6,000 6,000 0 100 59610 FR WPC OPERATING 274,719 238,112 307,908 374,070 100 59620 FR STORMWATER OPERATING 194,943 222,202 228,334 232,598 100 59630 FR PARKING OPERATING 75,004 76,844 83,072 86,909 100 59640 FR WATER UTILITY 175,214 101 0 201,487 100 59670 FR REFUSE COLLECTION 304,015 328,309 335,701 340,338 100 59940 FR DMASWA 55,850 58,692 59,389 91,912 59 - TRANSFER IN AND INTERNAL 1,085,745 930,260 1,020,404 1,327,314 74 - FINANCE DEPARTMENT TOTAL 1,196,442 1,002,383 1,084,304 1,405,109 -74- Recommended Operating Expenditure Budget - Department Total 74 - FINANCE DEPARTMENT Fund Account Account Title FY15 Actual Expense FY16 Actual Expense FY17 Adopted Budget FY 18 Recomm'd Budget 100 61010 FULL-TIME EMPLOYEES 726,931 682,533 763,769 789,687 640 61010 FULL-TIME EMPLOYEES 53,067 53,567 54,567 55,421 100 61020 PART-TIME EMPLOYEES 87,169 80,987 72,251 70,033 640 61020 PART-TIME EMPLOYEES 35,409 36,290 38,370 40,301 100 61030 SEASONAL EMPLOYEES 12,712 9,553 12,861 13,068 100 61050 OVERTIME PAY 18,812 22,846 10,574 10,574 640 61050 OVERTIME PAY 3,108 718 5,548 5,548 640 61071 HOLIDAY PAY-OVERTIME 85 284 0 0 100 61091 SICK LEAVE PAYOFF 8,758 8,758 8,758 1,376 100 61092 VACATION PAYOFF 0 18,411 0 0 100 61310 IPERS 74,943 70,268 77,523 78,884 640 61310 IPERS 8,186 8,114 8,883 9,043 100 61320 SOCIAL SECURITY 62,045 59,477 66,418 67,684 640 61320 SOCIAL SECURITY 6,805 6,704 7,533 7,746 100 61410 HEALTH INSURANCE 178,500 209,782 222,600 222,598 640 61410 HEALTH INSURANCE 21,420 32,275 31,800 31,800 100 61415 WORKMENS' COMPENSATION 3,148 3,138 3,218 3,293 640 61415 WORKMENS' COMPENSATION 5,748 5,520 5,632 6,452 100 61416 LIFE INSURANCE 662 608 1,526 1,579 640 61416 LIFE INSURANCE 55 55 109 111 100 61660 EMPLOYEE PHYSICALS 122 126 352 126 61 - WAGES AND BENEFITS 1,307,685 1,310,014 1,392,292 1,415,324 100 62010 OFFICE SUPPLIES 4,916 4,341 5,230 4,428 640 62010 OFFICE SUPPLIES 156 108 200 110 640 62011 UNIFORM PURCHASES 1,116 1,263 1,294 1,296 100 62030 POSTAGE AND SHIPPING 127,679 163,532 134,063 116,504 100 62031 PROCESSING MATERIALS 333 342 1,030 861 640 62033 HAND TOOLS/EQUIPMENT 1,323 1,169 1,400 1,192 100 62035 COURIER FEES 3,806 3,806 3,840 3,960 100 62050 OFFICE EQUIPMENT MAINT 2,187 2,860 2,050 2,897 100 62061 DP EQUIP. MAINT CONTRACTS 4,415 4,491 4,491 6,374 100 62070 OFFICE EQUIP RENTAL 31,939 27,532 34,636 34,635 100 62090 PRINTING & BINDING 21,899 17,367 21,090 17,748 100 62110 COPYING/REPRODUCTION 2,407 2,018 2,408 2,018 830 62110 COPYING/REPRODUCTION 0 18 0 0 100 62130 LEGAL NOTICES & ADS 6,281 7,611 6,225 6,018 100 62140 PROMOTION 5,291 1,438 8,512 3,365 100 62170 SUBSCRIPTIONS-BOOKS-MAPS 437 205 245 259 100 62190 DUES & MEMBERSHIPS 2,487 2,000 2,750 2,150 100 62202 OFFICERS BOND 8,176 8,273 8,687 8,438 100 62204 REFUNDS (2,067)0 0 0 100 62206 PROPERTY INSURANCE 162 (62)170 143 100 62208 GENERAL LIABILITY INSURAN 6,583 7,426 7,185 7,447 640 62208 GENERAL LIABILITY INSURAN 1,971 2,222 2,151 2,229 100 62214 ELEC FRANCHISE FEE REFUND 0 444,728 837,000 538,000 100 62215 GAS FRANCHISE FEE REFUND 0 37,825 63,800 41,608 100 62310 TRAVEL-CONFERENCES 1,815 979 7,300 7,300 100 62320 TRAVEL-CITY BUSINESS 120 1,461 880 880 100 62360 EDUCATION & TRAINING 3,023 3,855 6,300 6,300 640 62360 EDUCATION & TRAINING 45 0 100 0 100 62421 TELEPHONE 2,259 1,713 1,494 1,713 640 62421 TELEPHONE 616 675 684 675 830 62421 TELEPHONE 3,865 4,716 0 0 100 62436 RENTAL OF SPACE 1,332 1,512 1,332 1,542 640 62436 RENTAL OF SPACE 360 480 360 490 640 62511 FUEL, MOTOR VEHICLE 4,925 3,728 4,433 3,728 640 62521 MOTOR VEHICLE MAINT.6,593 2,466 2,252 2,515 -75- Recommended Operating Expenditure Budget - Department Total 74 - FINANCE DEPARTMENT Fund Account Account Title FY15 Actual Expense FY16 Actual Expense FY17 Adopted Budget FY 18 Recomm'd Budget 640 62528 MOTOR VEH. MAINT. OUTSOUR 938 0 121 938 640 62614 EQUIP MAINT CONTRACT 780 800 600 827 100 62660 DATA PROCESSING 69,985 72,917 74,439 76,075 100 62663 SOFTWARE LICENSE EXP 62,004 61,648 72,048 97,323 100 62666 CREDIT CARD CHARGE 55,564 85,929 55,500 75,000 100 62667 INTERNET SERVICES 320 159 480 120 640 62667 INTERNET SERVICES 0 0 240 240 100 62669 PROGRAMMING 33,572 34,979 35,708 36,493 100 62699 CASH SHORT AND OVER 173 495 0 0 100 62710 CONTRACTOR SERVICES 446 50 400 400 100 62713 LEGAL SERVICES 5,608 279 0 0 100 62716 CONSULTANT SERVICES 50,556 15,310 14,500 15,500 100 62722 INVESTMENT MGMT FEES 69,133 66,047 68,000 68,000 100 62723 INVEST-CUSTODIAL FEE 26,848 26,938 27,000 27,000 100 62726 AUDIT SERVICES 28,594 31,929 28,425 37,000 100 62727 FINANCIAL SERVICE FEES 3,783 3,252 4,600 4,060 100 62732 TEMP HELPCONTRACT SERV.8,771 10,945 0 0 62 - SUPPLIES AND SERVICES 673,525 1,173,775 1,555,653 1,265,799 100 62724 BOND PAYING AGENT FEE 1,500 18,575 15,725 20,150 627 - CONTRACTUAL SERVICES 1,500 18,575 15,725 20,150 830 63110 STORES-OFFICE 19,782 19,072 22,000 194,734 830 63111 LESS STORES-OFFICE (21,590)(22,163)(22,000)(194,734) 63 - ADMIN/OVERHEAD/STORES GAR (1,808)(3,091)0 0 100 71113 CALCULATORS 161 362 170 170 100 71120 PERIPHERALS, COMPUTER 0 780 0 0 640 71120 PERIPHERALS, COMPUTER 0 0 1,840 0 100 71122 PRINTER 0 0 300 0 100 71123 SOFTWARE 1,412 0 0 13,000 100 71211 DESKS/CHAIRS 722 0 1,200 1,200 640 71312 VAN/PICKUP/WAG REPL 15,543 0 0 0 640 72410 PAGER/RADIO EQUIPMENT 0 0 6,490 0 100 72417 CAMERA RELATED EQUIPMENT 0 1,407 0 0 100 72418 TELEPHONE RELATED 792 736 980 500 71 - EQUIPMENT 18,630 3,285 10,980 14,870 400 74111 PRINCIPAL PAYMENT 0 0 99,062 130,000 400 74112 INTEREST PAYMENT 0 0 109,096 72,906 74 - DEBT SERVICE 0 0 208,158 202,906 74 - FINANCE DEPARTMENT TOTAL 1,999,532 2,502,558 3,182,808 2,919,049 -76- Recommended Expenditure Budget Report by Activity & Funding Source 74 - FINANCE DEPARTMENT ACCTNG/PAYROLL/TREAS - 74100 FUNDING SOURCE: GENERAL Account FY16 Actual Expense FY17 Adopted Budget FY18 Recomm'd Budget CONTRACTUAL SERVICES 18,575 15,725 20,150 EQUIPMENT 2,549 1,330 14,020 SUPPLIES AND SERVICES 837,079 1,212,101 928,026 WAGES AND BENEFITS 636,212 690,482 693,942 ACCTNG/PAYROLL/TREAS 1,494,415 1,919,638 1,656,138 STORES INVENTORY - 74110 FUNDING SOURCE: STORES/PRINTING Account FY16 Actual Expense FY17 Adopted Budget FY18 Recomm'd Budget ADMIN/OVERHEAD/STORES GAR 1,286 0 0 STORES INVENTORY 1,286 0 0 CENTRALIZED MULTIFUNCTION- 74120 FUNDING SOURCE: STORES/PRINTING Account FY16 Actual Expense FY17 Adopted Budget FY18 Recomm'd Budget ADMIN/OVERHEAD/STORES GAR (4,377)0 0 SUPPLIES AND SERVICES 4,734 0 0 CENTRALIZED MULTIFUNCTION 356 0 0 CENTRALIZED POSTAGE - 74140 FUNDING SOURCE: STORES/PRINTING Account FY16 Actual Expense FY17 Adopted Budget FY18 Recomm'd Budget ADMIN/OVERHEAD/STORES GAR 0 0 0 CENTRALIZED POSTAGE 0 0 0 INTERNAL AUDIT - 74300 FUNDING SOURCE: GENERAL Account FY16 Actual Expense FY17 Adopted Budget FY18 Recomm'd Budget SUPPLIES AND SERVICES 0 0 0 INTERNAL AUDIT 0 0 0 UTILITY BILL/PARKING TKTS- 74700 FUNDING SOURCE: GENERAL Account FY16 Actual Expense FY17 Adopted Budget FY18 Recomm'd Budget EQUIPMENT 736 1,320 850 SUPPLIES AND SERVICES 319,050 329,717 323,533 WAGES AND BENEFITS 530,274 549,368 564,960 UTILITY BILL/PARKING TKTS 850,060 880,405 889,343 METER READS/SERVICE - 74710 FUNDING SOURCE: WATER UTILITY OPERATION Account FY16 Actual Expense FY17 Adopted Budget FY18 Recomm'd Budget EQUIPMENT 0 8,330 0 -77- Recommended Expenditure Budget Report by Activity & Funding Source 74 - FINANCE DEPARTMENT SUPPLIES AND SERVICES 12,912 13,835 14,240 WAGES AND BENEFITS 143,525 152,442 156,422 METER READS/SERVICE 156,437 174,607 170,662 DEBT SERVICE - 74720 FUNDING SOURCE: DEBT SERVICE Account FY16 Actual Expense FY17 Adopted Budget FY18 Recomm'd Budget DEBT SERVICE 0 208,158 202,906 DEBT SERVICE 0 208,158 202,906 FINANCE DEPARTMENT TOTAL $2,502,554.46 $3,182,808.00 $2,919,049.00 -78- C I T Y O F D U B U Q U E , I O W A DEPARTMENT DETAIL - PERSONNEL COMPLEMENT 74 FINANCE DEPARTMENT FY 2016 FY 2017 FY 2018 FD JC WP-GR JOB CLASS FTE BUDGET FTE BUDGET FTE BUDGET 61010 Full Time Employee Expense 100 2380 GE-42 FINANCE DIRECTOR 1.00 $90,296 1.00 $92,248 1.00 $111,793 100 1360 GE-37 ASSISTANT FINANCE DIRECTOR 1.00 $87,292 1.00 $89,174 1.00 $73,757 100 4860 GE-33 UTILITY BILLING SUPERVISOR 1.00 $70,470 1.00 $71,965 1.00 $73,123 100 1060 GE-30 ACCOUNTANT 2.00 $119,082 2.00 $109,693 2.00 $117,276 100 4160 GE-30 PURCHASING COORDINATOR 1.00 $52,001 1.00 $55,978 1.00 $60,028 640 4980 NA-49 WATER METER INSPECTOR 1.00 $53,450 1.00 $54,567 1.00 $55,421 100 1020 OE-06 ACCOUNT CLERK I 3.00 $132,623 3.00 $136,656 3.00 $139,742 100 1760 OE-05 CASHIER (FINANCE)5.00 $204,118 5.00 $208,055 5.00 $213,968 TOTAL FULL TIME EMPLOYEES 15.00 $809,332 15.00 $818,336 15.00 $845,108 61020 Part Time Employee Expense 100 3780 GE-28 PAYROLL SPECIALIST 0.70 $36,973 0.70 $37,768 0.70 $38,376 100 4440 GE-25 SECRETARY 0.75 $33,751 0.75 $34,483 0.75 $31,657 640 5040 OE-07 WATER METER SERVICEWORKER 0.80 $37,611 0.80 $38,370 0.80 $40,301 TOTAL PART TIME EMPLOYEES 2.25 $108,335 2.25 $110,621 2.25 $110,334 61030 Seasonal Employee Expense 100 2840 NA-38 FINANCE INTERN-SEASONAL 0.49 $12,592 0.49 $12,861 0.49 $13,068 TOTAL SEASONAL EMPLOYEES 0.49 $12,592 0.49 $12,861 0.49 $13,068 TOTAL FINANCE DEPARTMENT 17.74 $930,259 17.74 $941,818 17.74 $968,510 -79- CITY OF DUBUQUE, IOWA ACTIVITY PERSONNEL COMPLEMENT SUMMARY FY 2016 FY 2017 FY 2018 ACCT FD JC WP-GR POSITION CLASS FTE BUDGET FTE BUDGET FTE BUDGET Accounting/Payroll/Treasury-FT General Fund 10074100 61010 100 2380 GE-42 FINANCE DIRECTOR 0.90 $81,266 0.90 $83,023 0.90 $100,614 10074100 61010 100 1360 GE-37 ASSISTANT FINANCE DIRECTOR 1.00 $87,292 1.00 $89,174 1.00 $73,757 10074100 61010 100 4160 GE-30 PURCHASING COORDINATOR 1.00 $52,001 1.00 $55,978 1.00 $60,028 10074100 61010 100 1020 OE-06 ACCOUNT CLERK I 2.00 $87,574 2.00 $90,662 2.00 $93,007 10074100 61010 100 1060 GE-30 ACCOUNTANT 1.50 $89,504 1.50 $85,462 1.50 $86,168 Total 6.40 $397,637 6.40 $404,299 6.40 $413,574 Accounting/Payroll/Treasury-PT General Fund 10074100 61020 100 3780 GE-28 PAYROLL SPECIALIST 0.70 $36,973 0.70 $37,768 0.70 $38,376 10074100 61020 100 4440 GE-25 SECRETARY 0.75 $33,751 0.75 $34,483 0.75 $31,657 Total 1.45 $70,724 1.45 $72,251 1.45 $70,033 Accounting/Payroll/Treasury-Seasonal General Fund 10074100 61030 100 2840 NA-38 FINANCE INTERN-SEASONAL 0.49 $12,592 0.49 $12,861 0.49 $13,068 Total 0.49 $12,592 0.49 $12,861 0.49 $13,068 Utility Billing/Parking Tickets- FT General Fund 10074700 61010 100 2380 GE-42 FINANCE DIRECTOR 0.10 $9,030 0.10 $9,225 0.10 $11,179 10074700 61010 100 4860 GE-33 UTILITY BILLING SUPERVISOR 1.00 $70,470 1.00 $71,965 1.00 $73,123 10074700 61010 100 1060 GE-30 ACCOUNTANT 0.50 $29,578 0.50 $24,231 0.50 $31,108 10074700 61010 100 1760 OE-05 CASHIER (FINANCE)5.00 $204,118 5.00 $208,055 5.00 $213,968 10074700 61010 100 1020 OE-06 ACCOUNT CLERK I 1.00 $45,049 1.00 $45,994 1.00 $46,735 Total 7.60 $358,245 7.60 $359,470 7.60 $376,113 Meter Reads/Service - Water Fund 64074710 61010 640 4980 NA-49 WATER METER INSPECTOR 1.00 $53,450 1.00 $54,567 1.00 $55,421 64074710 61020 640 5040 OE-07 WATER METER SERVICEWORKER 0.80 $37,611 0.80 $38,370 0.80 $40,301 Total 1.80 $91,061 1.80 $92,937 1.80 $95,722 TOTAL FINANCE DEPARTMENT 17.74 $930,259 17.74 $941,818 17.74 $968,510 -80- PRGRM/ DEPT PROJECT DESCRIPTION FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 TOTAL PAGE FINANCE General Government Major General Ledger Software Upgrade $—$—$—$—$10,000 $10,000 387 Total - Finance Department $—$—$—$—$10,000 $10,000 FINANCE DEPARTMENT Fis a' u et City Council Budget Hearing Monday, February 13, 2017 Jean Nachtman, CPA, CPFO-Finance Director Tami Lansing, CPA, CPFO-Asst. Finance Director Rose Hoerner -Utility Billing Supervisor SUCCESS IS ABOUT PEOPLE, PLANNING AND PARTNERSHIPS LEADING TO OUTCOMES PEOPLE The Finance Department communicates to the citizens, bond holders, financial institutions and state agencies through the comprehensive annual report and required state reporting, the financial position of the City. The Utility Billing Department communicates to the citizens through direct contact, phone and monthly newsletters. FINANCE DEPARTMENT PARTNERSHIPS To meet the standards of extemal reporting, the Finance Department works with the State of Iowa as well as our external auditor, bond counsel, financial advisor, investment managers and local financial institutions, insurance providers and the Budget Office. Utility billing staff works with the Landlord Association, County Treasurer and several social service organizations within the community. PLANNING The Finance Department works with all City Departments and Divisions to ensure all internal and extemal reporting is relevant, accurate and timely. The complete `smart' water meter change out allows us to provide timely and accurate readings and billings to our over 23,000 utility customers 2 Utility Billing I Supervisor Utility Account Clerk kl Full Time Cashiers Finance Director I iPart Time Confidential Account Clerk Assistant Finance Director !Purchasing Coordinator FT&1PT Service Worker 2 Full Time Accountants 2 Full Time Account Clerks PT Payroll Specialist PT Intern FINANCE Preserve the City's strong financial condition through responsible financial strategies and effective management of City resources 4 FINANCE • Maintain public confidence • Invest funds for safety, liquidity & return • Offer electronic options for efficiencies sustainability • Provide on-line access: Open Expenses Fiscal Year Ended 2016 COMPREHENSIVE ANNUAL FINANCIAL REPORT '1IIr UTILITY BILLING Provide quality service to utility customer through prompt response to customer requests, accurate receipting, recording, and safekeeping customer accounts °°ZTtienirY essistxx4 Eitt 1 nwt4ECUSTO s SE RV I CEP.264‘7=- ma mks Psi". business 4r UTILITY BILLING • DBQIQ • Accurate and timely billings • E -billing • Online Payments water management HIGHLIGHTS OF THE PAST YEAR FINANCE • GFOA Certificate of Excellence for Financial Reporting • Unmodified audit opinion • Investment Policy Recertified Govunmcn: Finarce Otliu a A;aoclaton Certificate of Achievement for Excellence in Financial Reporting City of Dubuque Iowa Far n. Cc, ,xehensivc Aanuul Fiarncirl Rop+rt tortic FlseA Yaw Ecded June 30, 2015 .P•�fzZq� u a.,:i.a�i,::.�ani:o HIGHLIGHTS OF THE PAST YEAR FINANCE • Personnel Changes • ProjectlD UTILITY BILLING • Twin Ridge and Key West Customers FUTURE INITIATIVES FINANCE • Purchase order & accounts payable workflow FUTURE INITIATIVES FINANCE • RFP for audit services • Increase participation by employees, vendors and utility customers in e -options • On line payment option for miscellaneous billing customers. 11 FUTURE INITIATIVES UTILITY BILLING • Expand paperless billing • Service expanded customer base r ck water counts q_) alb ,O every piec et e o� p�Q RECOMMENDED CAPITAL IMPROVEMENT PROJECT Grant Management Software • Annual Maintenance -$33,000 • Installing & Training -$13,000 r O• •ortunities