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Finance Department FY19 Budget PresentationCopyrighted February 8, 2018 City of Dubuque Public Hearings # 3. IT EM T IT LE:Finance Department FY2019 Budget Presentation SUM MARY: SUGGEST ED DISPOSIT ION: ATTACHMENTS: Description Type FY19 Finance Department Budget Rec ommendation Supporting Documentation -63- Finance -64- This page intentionally left blank. -65- FINANCE DEPARTMENT Budget Highlights FY 2017 Actual FY 2018 Budget FY 2019 Requested % Change From FY 2018 Budget Expenses Employee Expense 1,380,929 1,415,024 1,269,080 -10.3% Supplies and Services 619,089 611,341 565,409 -7.5% Electric and Gas Utility Franchise Fee Rebates 646,857 579,608 723,980 24.9% Investment Mgr / Custodial & Financial Service Fees 91,458 95,000 95,000 0.0% Machinery and Equipment 1,583 14,870 2,320 -84.4% Non-Expense Accounts (7,116)——0.0% Total 2,732,800 2,715,843 2,655,789 -2.2% Abated Debt - Franchise Fee Litigation 207,230 202,906 205,306 1.2% Total Expense 2,940,030 2,918,749 2,861,095 -2.0% Resources Miscellaneous Revenue 73,745 77,795 34,240 -56.0% Electric and Gas Utility Franchise Fees 4,543,579 4,552,625 5,040,810 10.7% Overhead & Utility Billing Recharges to Enterprise Funds 1,020,404 1,327,314 1,333,662 0.5% Water Meter Service Recharges 163,674 170,662 —0.0% Total revenue 5,801,402 6,128,396 6,408,712 4.6% Property Tax Support (2,861,372)(3,209,647)(3,547,617)(337,970) Personnel - Authorized FTE 17.74 17.74 15.94 Improvement Package Summary 1 of 1 This improvement level request would eliminate the leak allowance, and switch the responsibility to the customer to use the free tools that the city has provided to detect leaks. The City has had a long- standing practice of crediting customers’ accounts when a leak is determined and repaired. This is not an ordinance, but rather an encouragement for customers to make repairs. The customer can also submit receipts for the repair and the City will reimburse 50% of the cost, to a maximum of $100. The current process is to determine a leak has occurred based on higher than normal consumption. The customer submits a receipt as proof the leak has been repaired. The account’s consumption is monitored for assurance that the leak has been repaired and then a computation is made to refund 100% of the costs associated with of the leak for up to 30 days. The leak adjustments reduce revenue for both water and sewer. In fiscal year 2017 water revenue was reduced by over $25,000 and sewer over $31,000. These have been fairly consistent numbers over the years. Utility Billing will soon be upgrading the DBQIQ online portal. The existing portal has allowed customers to monitor their water usage, and receive email messages if the system detected a usage pattern that indicated the account may have a continuous flow leak or an intermittent leak. Customers have complained that the website was cumbersome to use. The new WaterSmart web portal is expected to go live in January 2018. WaterSmart offers an enhanced and more user-friendly environment for customers to monitor water usage, and set alerts to send text or -66- email warnings when the system detects a leak. Customer may also set monthly usage goals that the system will send out messages when the account is in danger of exceeding a set goal. With the availability of WaterSmart the practice of leak allowances should cease. No longer will the customer have to wait for high bill before discovering a leak. The customer can set a leak notice and know within 24 hours of a potential leak. Over the years, the attitude of customers has been to expect that there should be no charge for wasted water. This attitude goes against the City’s sustainability mission. Other utilities do not make allowances for wasted energy. Instead those utilities offer rebates to purchase energy efficient appliances, insulation, and weather proofing homes. The City’s leak repair grant falls in with the other utilities sustainability measures. Elimination of the leak allowances switches the responsibility to the customer to use the free tools that that City has provided, rather than having the City burdened with the cost to produce water that is wasted. For customers that do not choice to use the WaterSmart tool, and do have an unusually large bill due to a leak, the City could make payment arrangements to spread the payment over several months. Related Revenue:$25,000 Water User Fees Recurring Recommend - No Related Revenue:$31,000 Sewer User Fees Recurring Total Revenue $56,000 Water Rate Impact (0.321)% Sewer Rate Impact (0.303)% Activity: Water Undistributed, Sewer Undistributed Significant Line Items Employee Expense 1. FY 2019 employee expense reflects a 1.5% wage package increase. 2. The Iowa Public Employee Retirement System (IPERS) City contribution increased from 8.93% in FY 2018 to 9.44% in FY 2019. This resulted in an increase of City IPERS expense of $4,457 in the Finance Department. The employee contribution increased from 5.95% in FY 2018 to 6.29% in FY 2019. 3. The City portion of health insurance expense decreased from $1,325 in FY 2018 to $1,193 in FY 2019 per month per contract which results in annual savings of -$54,058 or -10.00%. 4. Sick leave payout decreased from $1,376 in FY 2018 to $0 in FY 2019. 5. Overtime is decreased from $16,122 in FY 2018 to $6,000 in FY 2019. FY 2017 actual was $4,384. 6. The Water Meter Reads and Service activity has been moved to the Water Department in FY 2019. A full-time Water Meter Inspector (-1.00 FTE) and a part-time Water Meter Service Worker (-0.80 FTE) have been moved from the Finance Department to the Water Department as a result of this change. Supplies & Services 7. Electric Franchise Fee Refund increased from $538,000 in FY 2018 to $671,710 in FY 2019 based on FY 2017 actual $597,076 plus 12.50%, which represents the expected rate increases in FY 2018 -67- and FY 2019 from Alliant Energy. Alliant Energy filed an application to the Iowa Utilities Board on April 3, 2017, seeking an increase of approximately 12.50%. 8. Gas Franchise Fee Refund increased from $41,608 in FY 2018 to $52,270 in FY 2019 based on FY 2017 actual $49,781 plus 5.00%, which represents the expected rate increases in FY 2018 and FY 2019. 9. Postage and Shipping increased from $116,504 in FY 2018 to $120,828 in FY 2019 based on twelve months of actual postage billed to accounting and utility billing. 10. Data Processing increased from $76,075 in FY 2018 to $78,441 in FY 2019 due to the increase in employee cost of Information Service employees that maintain the City’s computers. 11. Credit Card Charge decreased from $75,000 in FY 2018 to $30,000 in FY 2019. During FY 2018, the City switched credit card vendors. Previously, the City paid a 3% per transaction fee to the credit card vendor which was only partially offset (50%) by a convenience charge to the utility billing customer. The new vendor charges a $4.95 per transaction fee directly to the utility billing customer and retains the fee as part of their contract. The City no longer receives a convenience charge related to credit card transactions. This new vendor reduces credit card charge expense by $45,000 and reduces credit card fee revenue by $42,000 (net savings of $3,000). In addition, the City absorbs a $0.25 per e-check transaction for online utility bill payments. 12. Audit Services increased from $37,000 in FY 2018 to $37,280 in FY 2019 based on FY 2017 actual of $37,280 and the contracted amount. The total cost of the annual audit is split between departments that are audited for Federal grants and the Finance Department. 13. Bond Paying Agent Fee increased from $20,150 in FY 2018 to $22,300 in FY 2019 based on FY 2017 actual of $20,725 and an increase in the cost per bond to process payment. Machinery & Equipment 14. Equipment replacement items at the maintenance level include ($2,320): Accounting/Payroll/Treasury (2) Chairs $600 (1) Desk Phone & Smart Phone $700 Utility Billing/Parking Tickets (2) Chairs $600 (1) Calculator $170 (1) Desk Phone $250 Total $2,320 Debt Service 15. Debt Service includes the following ($205,306): Amount Debt Series Source Purpose Final Payment Call Date $205,306 2016A G.O.Debt Levy Franchise Fee Settlement 2035 2024 $205,306 Total Finance Debt Service -68- Revenue 16. Franchise Fees increased from $4,552,625 in FY 2018 to $5,040,810 in FY 2019 based on FY 2017 actual of $4,543,579 plus 10.94%, which represents the expected rate increases for electric and gas in FY 2018 and FY 2019. 17. Penalties decreased from $20,799 in FY 2018 to $18,891 in FY 2019 based on FY 2017 actual of $18,896 which represents administrative collection fees and administrative fees for tax liens. 18. Credit Card Fee is decreased from $42,000 in FY 2018 to $0 in FY 2019. During FY 2018, the City switched credit card vendors. Previously, the City paid a 3% per transaction fee to the credit card vendor which was only partially offset (50%) by a convenience charge to the utility billing customer. The new vendor charges a $4.95 per transaction fee directly to the utility billing customer and retains the fee as part of their contract. The City no longer receives a convenience charge related to credit card transactions. This new vendor reduces credit card charge expense by $45,000 and reduces credit card fee revenue by $42,000 (net savings of $3,000). In addition, the City absorbs a $0.25 per e-check transaction for online utility bill payments. 19. Revenue received from Enterprise Funds for Utility Billing and administrative overhead charges increased from $1,327,314 in FY 2018 to $1,333,662 in FY 2019. -69- -70- This page intentionally left blank. -71- 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 -72- FINANCE DEPARTMENT The Finance Department is supported by 15.94 full-time equivalent employees, which accounts for 44.36% of the department expense as seen below. Overall, the departments’ expenses are expected to decrease by -1.98% in FY 2019 compared to FY 2018. Expenditures by Category by Fiscal Year -73- 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: Maintain the financial system to record, summarize, verify and analyze financial transactions. Disclose information in an understandable manner that facilitates financial interpretations, opinions, and conclusions. Treasury management, including accounts payable, accounts receivable, payroll, purchasing coordination, and risk management. Document and summarize annual operations, to satisfy reporting needs. Review and audit expenses. Assemble, audit, and update payroll data for processing. Maintain payroll information on a calendar year and fiscal year basis for reporting. Provide accounting services to Dubuque Initiatives and Subsidiaries (DI), and Dubuque Metropolitan Area Solid Waste Agency (DMASWA). Grants: Maintain administrative policy to guide grant related activities. Prepare documents for annual single audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principals, and Audit requirements for Federal Awards, (Uniform Guidance), and the Schedule of Expenditures Federal Awards (SEFA). Administer AmeriCorps grant reimbursement requests and prepare reports. 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. -74- FINANCE DEPARTMENT 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). Financial Service Funding Summary FY 2017 Actual FY 2018 Budget FY 2019 Requested Expenditures $1,640,239 $1,655,838 $1,798,588 Resources $4,942,459 $515,765 $5,557,392 Financial Service Position Summary FY 2019 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, and streamline payment processing for routine purchases. Online Employee Time Sheet Purchase Grant Reporting software Streamline Accounts Payable workflow -75- 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: Service value for taxes and fees Comprehensive Annual Financial Statement The Government Accounting and Standards Board (GASB) pronouncements for governmental reporting, recognizes that power rests in the hands of the people. The first objective for any governmental financial reporting is an accountability that requires governments to justify the raisings of public resources and the purpose for which those resources are used. The Comprehensive Annual Financial Report (CAFR), contains externally audited financial statements, notes to the financial statements, and required supplementary information. A statistical section includes current and nine years of past history for financials trends, revenue capacity, debt capacity, demographic and, economic information, and operating indicators. DID YOU KNOW? The City has received the Certificate of Excellence in Financial Reporting for 29 consecutive years. Outcome #2: Opportunities to become involved in City governance and planning The Investment Oversight Advisory Commission Five members from the community meet quarterly to review the City’s investments and insure that all investments adhere to the City’s investment policy, state and legal requirements, and recommended best practices for preservation of capital, liquidity, and a reasonable return on investment. The City has over $26 million in professionally managed investments. -76- FINANCE DEPARTMENT CITY OF DUBUQUE Summary of Managed Investments at Market Value As of June 30, 2017 (In hundreds of dollars) Investment Type Matures Less than 1 Year Matures 1 to 5 Years Matures 6 to 10 Years Matures More than 10 Years TOTAL Money Market /Mutual Funds/Cash $ 19,449 0 0 0 $ 19,449 US Treasuries 16,132 0 27,028 43,160 Federal Agency Obligations 26,536 158,296 2,299 39,499 226,630 Managed Account Long Term CD 2,500 2,439 0 0 4,939 Corporate Stock 1,003 0 0 0 1,003 $65,620 $160,735 $2,299 $66,527 $295,181 DID YOU KNOW? The City’s investment policy was re-certified July 2017, by the Association of Public Treasurers of the United States and Canada. Outcome #3: Easy, convenient access to City information and services The City of Dubuque Finance Department’s main goal is to provide meaningful and timely financial data to satisfy the need for sound fiscal policy and full disclosure. This website promotes open government and financial transparency by providing a searchable portal of payments made by the City of Dubuque. Amounts are shown for the current and past five fiscal years. Information is updated weekly. -77- FINANCE DEPARTMENT Utility Services Overview Utility Services is responsible for maintaining positive customer relations for over 24,000 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 2017 Actual FY 2018 Budget FY 2019 Requested Expenditures $1,090,521 $1,060,005 $857,201 Resources $1,090,521 $1,060,005 $857,201 Utility Services Position Summary FY 2019 Finance Director 0.10 Utility Billing Supervisor 1.00 Accountant 0.50 Account Clerk 1 1.00 Cashier 5.00 Water Meter Inspector 0.00 Water Meter Service Worker 0.00 Total FT Equivalent Employees 7.60 Highlights of the Past Year Purchase of Central Iowa Water Systems (321 new water accounts) Key West Drive - 5 new water connections Airport - 17 water connections/18 sewer and water connections Future Initiatives WaterSmart Paymentus online payment software Superion 17.2 upgrade Upgrade customer information and billing software Improvements in E-billing Addition of new accounts as new subdivisions are completed 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. -78- FINANCE DEPARTMENT Goal: Financially Responsible, High Performance Organization Outcome #1: Secure City information, including personal information The Council approved the City’s Identity Theft Prevention Program, in 2008. The policy establishes procedures to identify “Red Flags” that can detect and prevent or mitigate any identify theft. The policy and procedures protect the City’s data, and provide the appropriate response if a violation is detected. The policy establishes procedures to prevent a person from establishing service under a false name that could lead to identity theft, or gain unauthorized access to account information. The Red Flag committee, consisting of employees from Legal, Information Services, and Finance, meets semi-annually to review existing policy, report on any concerns, and update policy if needed. DID YOU KNOW? Approximately 24,000 utility bills are generated monthly Outcome #2: Easy, convenient access to City information and services Empowers the customer to monitor usage, identify leaks, become more sustainable, and lower their bill. Currently, 4% of our customers utilize the portal. This water management website was first implemented in 2013 and significantly upgraded in late 2017. Free of charge to the customer, the website allows customers to monitor their water usage hourly, set up automatic alerts if the water consumption may indicate a leak, and help customers set a personal goal for water conservation to stay within their parameters. The upgraded website promotes an interactive environment that encourages customers to be sustainable with tips and tools to better manage water usage. More enhancements will become available so that the customer can get billing and payment history, a copy of the current bill, and make a payment in a one stop website. These additional features will encourage more customers to go to the website and then explore all information available to them. E-Billing and Billing History Website The City offers e-billing which allows customers to receive their bill by e-mail. In 1st quarter 2018, an upgraded, and more streamlined option, will be available that should encourage even higher participation. Customers receive an e-mail notification that their bill is available and then can login to their account for further detail. -79- FINANCE DEPARTMENT Customers can scroll through the website to see not only current billing information, but also past billing history and payments. Customers can make online payments using a credit or debit card, or by e-check. DID YOU KNOW? Customers have online access to their current and past billing, payment and consumption history Outcome #3: Customer-focused City service delivery The City still offers walk in face to face contact for our customers. Some customers prefer the personal interaction either in person or by phone, even as more and more customers are switching to the convenience of web based 24 hour access for paying bills, obtaining billing and payment history, starting and stopping service, or reporting a billing concern. The customer has multiple options for paying that include the payment counter in City Hall, the drop box located outside City Hall, US mail service, direct debit to their bank account, or online website payments. Coming in 2018, the City is partnering with Paymentus to offer enhanced online payment options that include scheduling payment dates and recurring payments -80- This page intentionally left blank. -81- Recommended Operating Revenue Budget - Department Total 74 - FINANCE DEPARTMENT Fund Account Account Title FY16 Actual Revenue FY17 Actual Revenue FY18 Adopted Budget FY19 Recomm'd Budget 100 42335 MAQ VALLEY ELEC FRANCHISE 0 70,385 0 79,184 100 42340 GAS FRANCHISE FEE 0 942,886 0 990,030 100 42345 ELECTRIC FRANCHISE FEE 0 3,530,308 0 3,971,596 42 - LICENSES AND PERMITS 0 4,543,579 0 5,040,810 100 51178 CREDIT CARD FEE 35,473 39,074 42,000 0 100 51215 PENALTIES 20,724 18,896 20,799 18,891 51 - CHARGES FOR SERVICES 56,197 57,970 62,799 18,891 100 53201 REFUNDS 413 253 0 0 100 53530 SPECIALIZED SERVICES 3,000 3,000 3,000 3,000 100 53605 MISCELLANEOUS REVENUE 464 556 467 510 640 53610 INSURANCE CLAIMS 0 119 0 0 100 53620 REIMBURSEMENTS-GENERAL 11,531 11,839 11,529 11,839 830 53620 REIMBURSEMENTS-GENERAL 518 8 0 0 53 - MISCELLANEOUS 15,926 15,775 14,996 15,349 100 59100 FR GENERAL 6,000 6,000 0 0 100 59610 FR WPC OPERATING 238,112 307,908 374,070 367,615 100 59620 FR STORMWATER OPERATING 222,202 228,334 232,598 233,063 100 59630 FR PARKING OPERATING 76,844 83,072 86,909 84,989 100 59640 FR WATER UTILITY 101 0 201,487 223,540 100 59670 FR REFUSE COLLECTION 328,309 335,701 340,338 336,604 100 59940 FR DMASWA 58,692 59,389 91,912 87,851 59 - TRANSFER IN AND INTERNAL 930,260 1,020,404 1,327,314 1,333,662 74 - FINANCE DEPARTMENT TOTAL 1,002,383 5,637,728 1,405,109 6,408,712 -82- Recommended Operating Expenditure Budget - Department Total 74 - FINANCE DEPARTMENT Fund Account Account Title FY16 Actual Expense FY17 Actual Expense FY18 Adopted Budget FY 19 Recomm'd Budget 100 61010 FULL-TIME EMPLOYEES 682,533 749,198 789,687 818,721 640 61010 FULL-TIME EMPLOYEES 53,567 55,400 55,421 0 100 61020 PART-TIME EMPLOYEES 80,987 73,803 70,033 71,843 640 61020 PART-TIME EMPLOYEES 36,290 42,316 40,301 0 100 61030 SEASONAL EMPLOYEES 9,553 23,057 12,811 13,005 100 61050 OVERTIME PAY 22,846 3,784 10,574 6,000 640 61050 OVERTIME PAY 718 599 5,548 0 640 61071 HOLIDAY PAY-OVERTIME 284 0 0 0 100 61091 SICK LEAVE PAYOFF 8,758 8,758 1,376 0 100 61092 VACATION PAYOFF 18,411 4,745 0 0 100 61310 IPERS 70,268 75,068 78,861 85,865 640 61310 IPERS 8,114 8,780 9,043 0 100 61320 SOCIAL SECURITY 59,477 61,066 67,664 69,582 640 61320 SOCIAL SECURITY 6,704 7,258 7,746 0 100 61410 HEALTH INSURANCE 209,782 222,600 222,598 200,340 640 61410 HEALTH INSURANCE 32,275 31,800 31,800 0 100 61415 WORKMENS' COMPENSATION 3,138 3,218 3,293 2,844 640 61415 WORKMENS' COMPENSATION 5,520 5,632 6,452 0 100 61416 LIFE INSURANCE 608 677 1,579 700 640 61416 LIFE INSURANCE 55 55 111 0 100 61417 UNEMPLOYMENT INSURANCE 0 2,682 0 0 100 61660 EMPLOYEE PHYSICALS 126 433 126 180 61 - WAGES AND BENEFITS 1,310,014 1,380,929 1,415,024 1,269,080 100 62010 OFFICE SUPPLIES 4,341 3,329 4,428 3,364 640 62010 OFFICE SUPPLIES 108 143 110 0 640 62011 UNIFORM PURCHASES 1,263 1,136 1,296 0 100 62030 POSTAGE AND SHIPPING 163,532 115,163 116,504 120,828 100 62031 PROCESSING MATERIALS 342 683 861 683 640 62033 HAND TOOLS/EQUIPMENT 1,169 475 1,192 0 100 62035 COURIER FEES 3,806 3,795 3,960 3,960 100 62050 OFFICE EQUIPMENT MAINT 2,860 3,565 2,897 3,565 100 62061 DP EQUIP. MAINT CONTRACTS 4,491 4,492 6,374 5,898 100 62070 OFFICE EQUIP RENTAL 27,532 34,636 34,635 34,636 100 62090 PRINTING & BINDING 17,367 17,511 17,748 17,511 100 62110 COPYING/REPRODUCTION 2,018 2,103 2,018 2,103 830 62110 COPYING/REPRODUCTION 18 542 0 0 100 62130 LEGAL NOTICES & ADS 7,611 7,353 6,018 6,435 100 62140 PROMOTION 1,438 4,558 3,365 4,558 100 62170 SUBSCRIPTIONS-BOOKS-MAPS 205 370 259 420 100 62190 DUES & MEMBERSHIPS 2,000 1,628 2,150 1,693 100 62202 OFFICERS BOND 8,273 16,720 8,438 8,390 100 62206 PROPERTY INSURANCE (62)138 143 0 100 62208 GENERAL LIABILITY INSURAN 7,426 7,092 7,447 6,353 640 62208 GENERAL LIABILITY INSURAN 2,222 2,123 2,229 0 100 62214 ELEC FRANCHISE FEE REFUND 444,728 597,076 538,000 671,710 100 62215 GAS FRANCHISE FEE REFUND 37,825 49,781 41,608 52,270 100 62310 TRAVEL-CONFERENCES 979 3,698 7,300 7,300 100 62320 TRAVEL-CITY BUSINESS 1,461 25 880 880 100 62360 EDUCATION & TRAINING 3,855 3,545 6,300 6,300 100 62421 TELEPHONE 1,713 1,367 1,713 1,366 640 62421 TELEPHONE 675 679 675 0 830 62421 TELEPHONE 4,716 8,614 0 0 -83- Recommended Operating Expenditure Budget - Department Total 74 - FINANCE DEPARTMENT Fund Account Account Title FY16 Actual Expense FY17 Actual Expense FY18 Adopted Budget FY 19 Recomm'd Budget 100 62436 RENTAL OF SPACE 1,512 1,554 1,542 1,554 640 62436 RENTAL OF SPACE 480 480 490 0 640 62511 FUEL, MOTOR VEHICLE 3,728 3,069 3,728 0 640 62521 MOTOR VEHICLE MAINT.2,466 2,443 2,515 0 640 62528 MOTOR VEH. MAINT. OUTSOUR 0 131 938 0 640 62614 EQUIP MAINT CONTRACT 800 771 827 0 100 62660 DATA PROCESSING 72,917 74,439 76,075 78,441 100 62663 SOFTWARE LICENSE EXP 61,648 73,704 97,323 102,835 100 62666 CREDIT CARD CHARGE 85,929 108,850 75,000 30,000 100 62667 INTERNET SERVICES 159 120 120 120 640 62667 INTERNET SERVICES 0 135 240 0 100 62671 MISC OPERATING SUPPLIES 34,979 35,708 36,493 37,628 100 62669 PROGRAMMING 0 494 0 0 100 62699 CASH SHORT AND OVER 495 (2,549)0 0 100 62710 CONTRACTOR SERVICES 50 43 400 400 100 62713 LEGAL SERVICES 279 54 0 0 100 62716 CONSULTANT SERVICES 15,310 12,000 15,500 15,500 100 62722 INVESTMENT MGMT FEES 66,047 63,724 68,000 68,000 100 62723 INVEST-CUSTODIAL FEE 26,938 27,734 27,000 27,000 100 62726 AUDIT SERVICES 31,929 37,280 37,000 37,280 100 62727 FINANCIAL SERVICE FEES 3,252 2,606 4,060 3,108 100 62732 TEMP HELPCONTRACT SERV.10,945 1,549 0 0 62 - SUPPLIES AND SERVICES 1,173,775 1,336,679 1,265,799 1,362,089 100 62724 BOND PAYING AGENT FEE 18,575 20,725 20,150 22,300 627 - CONTRACTUAL SERVICES 18,575 20,725 20,150 22,300 830 63110 STORES-OFFICE 19,072 472,836 194,734 270,000 830 63111 LESS STORES-OFFICE (22,163)(479,952)(194,734)(270,000) 63 - ADMIN/OVERHEAD/STORES GAR (3,091)(7,116)0 0 100 71113 CALCULATORS 362 0 170 170 100 71120 PERIPHERALS, COMPUTER 780 0 0 0 640 71120 PERIPHERALS, COMPUTER 0 248 0 0 100 71123 SOFTWARE 0 0 13,000 0 100 71211 DESKS/CHAIRS 0 610 1,200 1,200 100 72417 CAMERA RELATED EQUIPMENT 1,407 0 0 0 100 72418 TELEPHONE RELATED 736 725 500 950 71 - EQUIPMENT 3,285 1,583 14,870 2,320 400 74111 PRINCIPAL PAYMENT 0 120,000 130,000 135,000 400 74112 INTEREST PAYMENT 0 87,230 72,906 70,306 74 - DEBT SERVICE 0 207,230 202,906 205,306 74 - FINANCE DEPARTMENT TOTAL 2,502,558 2,940,030 2,918,749 2,861,095 -84- Recommended Expenditure Budget Report by Activity & Funding Source 74 - FINANCE DEPARTMENT ACCTNG/PAYROLL/TREAS - 74100 FUNDING SOURCE: GENERAL Account FY17 Actual Expense FY18 Adopted Budget FY19 Recomm'd Budget CONTRACTUAL SERVICES 20,725 20,150 22,300 EQUIPMENT 453 14,020 1,300 SUPPLIES AND SERVICES 946,997 928,026 1,069,589 WAGES AND BENEFITS 672,064 693,642 705,399 ACCTNG/PAYROLL/TREAS 1,640,239 1,655,838 1,798,588 STORES INVENTORY - 74110 FUNDING SOURCE: STORES/PRINTING Account FY17 Actual Expense FY18 Adopted Budget FY19 Recomm'd Budget ADMIN/OVERHEAD/STORES GAR 4,497 —— STORES INVENTORY 4,497 —— CENTRALIZED MULTIFUNCTION- 74120 FUNDING SOURCE: STORES/PRINTING Account FY17 Actual Expense FY18 Adopted Budget FY19 Recomm'd Budget ADMIN/OVERHEAD/STORES GAR (6,581)—— SUPPLIES AND SERVICES 9,156 —— CENTRALIZED MULTIFUNCTION 2,574 —— CENTRALIZED POSTAGE - 74140 FUNDING SOURCE: STORES/PRINTING Account FY17 Actual Expense FY18 Adopted Budget FY19 Recomm'd Budget ADMIN/OVERHEAD/STORES GAR 660 —— CENTRALIZED POSTAGE 660 —— UTILITY BILL/PARKING TKTS- 74700 FUNDING SOURCE: GENERAL Account FY17 Actual Expense FY18 Adopted Budget FY19 Recomm'd Budget EQUIPMENT 882 850 1,020 SUPPLIES AND SERVICES 368,940 323,533 292,500 WAGES AND BENEFITS 557,025 564,960 563,681 UTILITY BILL/PARKING TKTS 926,847 889,343 857,201 METER READS/SERVICE - 74710 FUNDING SOURCE: WATER UTILITY OPERATION Account FY17 Actual Expense FY18 Adopted Budget FY19 Recomm'd Budget EQUIPMENT 248 —— SUPPLIES AND SERVICES 11,586 14,240 — WAGES AND BENEFITS 151,840 156,422 — -85- Recommended Expenditure Budget Report by Activity & Funding Source 74 - FINANCE DEPARTMENT METER READS/SERVICE 163,674 170,662 — DEBT SERVICE - 74720 FUNDING SOURCE: DEBT SERVICE Account FY17 Actual Expense FY18 Adopted Budget FY19 Recomm'd Budget DEBT SERVICE 207,230 202,906 205,306 DEBT SERVICE 207,230 202,906 205,306 FINANCE DEPARTMENT TOTAL $2,502,554.46 $3,182,808.00 $2,919,049.00 -86- 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 2017 FY 2018 FY 2019 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 $92,248 1.00 $111,793 1.00 $119,628 100 1360 GE-37 ASSISTANT FINANCE DIRECTOR 1.00 $89,174 1.00 $73,757 1.00 $78,944 100 4860 GE-33 UTILITY BILLING SUPERVISOR 1.00 $71,965 1.00 $73,123 1.00 $74,235 100 1060 GE-30 ACCOUNTANT 2.00 $109,693 2.00 $117,276 2.00 $122,558 100 4160 GE-30 PURCHASING COORDINATOR 1.00 $55,978 1.00 $60,028 1.00 $62,041 640 4980 NA-49 WATER METER INSPECTOR 1.00 $54,567 1.00 $55,421 0.00 $— 100 1020 OE-06 ACCOUNT CLERK I 3.00 $136,656 3.00 $139,742 3.00 $142,428 100 1760 OE-05 CASHIER (FINANCE)5.00 $208,055 5.00 $213,968 5.00 $218,887 TOTAL FULL TIME EMPLOYEES 15.00 $818,336 15.00 $845,108 14.00 $818,721 61020 Part Time Employee Expense 100 3780 GE-28 PAYROLL SPECIALIST 0.70 $37,768 0.70 $38,376 0.70 $38,963 100 4440 GE-25 SECRETARY 0.75 $34,483 0.75 $31,657 0.75 $32,880 640 5040 OE-07 WATER METER SERVICEWORKER 0.80 $38,370 0.80 $40,301 0.00 $— TOTAL PART TIME EMPLOYEES 2.25 $110,621 2.25 $110,334 1.45 $71,843 61030 Seasonal Employee Expense 100 2840 NA-38 FINANCE INTERN-SEASONAL 0.49 $12,861 0.49 $12,811 0.49 $13,005 TOTAL SEASONAL EMPLOYEES 0.49 $12,861 0.49 $12,811 0.49 $13,005 TOTAL FINANCE DEPARTMENT 17.74 $941,818 17.74 $968,253 15.94 $903,569 -87- CITY OF DUBUQUE, IOWA ACTIVITY PERSONNEL COMPLEMENT SUMMARY FY 2017 FY 2018 FY 2019 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 $83,023 0.90 $100,614 0.90 $107,666 10074100 61010 100 1360 GE-37 ASSISTANT FINANCE DIRECTOR 1.00 $89,174 1.00 $73,757 1.00 $78,944 10074100 61010 100 4160 GE-30 PURCHASING COORDINATOR 1.00 $55,978 1.00 $60,028 1.00 $62,041 10074100 61010 100 1020 OE-06 ACCOUNT CLERK I 2.00 $90,662 2.00 $93,007 2.00 $95,159 10074100 61010 100 1060 GE-30 ACCOUNTANT 1.50 $85,462 1.50 $86,168 1.50 $90,729 Total 6.40 $404,299 6.40 $413,574 6.40 $434,539 Accounting/Payroll/Treasury-PT General Fund 10074100 61020 100 3780 GE-28 PAYROLL SPECIALIST 0.70 $37,768 0.70 $38,376 0.70 $38,963 10074100 61020 100 4440 GE-25 SECRETARY 0.75 $34,483 0.75 $31,657 0.75 $32,880 Total 1.45 $72,251 1.45 $70,033 1.45 $71,843 Accounting/Payroll/Treasury-Seasonal General Fund 10074100 61030 100 2840 NA-38 FINANCE INTERN-SEASONAL 0.49 $12,861 0.49 $12,811 0.49 $13,005 Total 0.49 $12,861 0.49 $12,811 0.49 $13,005 Utility Billing/Parking Tickets- FT General Fund 10074700 61010 100 2380 GE-42 FINANCE DIRECTOR 0.10 $9,225 0.10 $11,179 0.10 $11,962 10074700 61010 100 4860 GE-33 UTILITY BILLING SUPERVISOR 1.00 $71,965 1.00 $73,123 1.00 $74,235 10074700 61010 100 1060 GE-30 ACCOUNTANT 0.50 $24,231 0.50 $31,108 0.50 $31,829 10074700 61010 100 1760 OE-05 CASHIER (FINANCE)5.00 $208,055 5.00 $213,968 5.00 $218,887 10074700 61010 100 1020 OE-06 ACCOUNT CLERK I 1.00 $45,994 1.00 $46,735 1.00 $47,269 Total 7.60 $359,470 7.60 $376,113 7.60 $384,182 Meter Reads/Service - Water Fund 64074710 61010 640 4980 NA-49 WATER METER INSPECTOR 1.00 $54,567 1.00 $55,421 0.00 $— 64074710 61020 640 5040 OE-07 WATER METER SERVICEWORKER 0.80 $38,370 0.80 $40,301 0.00 $— Total 1.80 $92,937 1.80 $95,722 0.00 $— TOTAL FINANCE DEPARTMENT 17.74 $941,818 17.74 $968,253 15.94 $903,569 -88- This page intentionally left blank. 1 City Council Budget Hearing Thursday, February 8, 2018 Jean Nachtman, CPA, CPFO-Finance Director Tami Lansing, CPA, CPFO-Asst. Finance Director Rose Hoerner-Utility Billing Supervisor 2 PLANNING The Finance Department works with all City Departments and Divisions to ensure all internal and external 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 24,000 utility customers 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.PARTNERSHIPS To meet the standards of external 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. SUCCESS IS ABOUT PEOPLE, PLANNING AND PARTNERSHIPS LEADING TO OUTCOMES 3 Finance Director Assistant Finance Director Purchasing Coordinator 2 Full Time Accountants 2 Full Time Account Clerks PT Payroll Specialist PT Intern Part Time Confidential Account Clerk Utility Billing Supervisor Utility Account Clerk 5 Full Time Cashiers 4 FINANCE Preserve the City’s strong financial condition through responsible financial strategies and effective management of City resources 5 FINANCE •Maintain public confidence •Invest funds for safety, liquidity & return •Offer electronic options for efficiencies & sustainability •Provide on-line access: Open Expenses 6 FINANCE •GFOA Certificate of Excellence for Financial Reporting •Unmodified audit opinion •Investment Policy Recertified 7 UTILITY BILLING Provide quality service to utility customer through prompt response to customer requests, accurate receipting, recording, and safekeeping customer accounts 8 UTILITY BILLING •TOOLS •AMR READINGS •E-BILLINGS •ONLINE PAYMENTS 9 Coming Soon: The WaterSmart Portal Leak Alerts Paperless eBilling Online Quick Pay Auto Pay View your water usage, checks for leaks, and set-up alerts thorough WaterSmart Portal Hate paper clutter? Get rid of it by enrolling in eBill and have instant access to current and past bills. Have real-time access to account information and pay your bill in seconds with ease. Sign up for AutoPay to have your bill automatically deducted from your bank account. No need to mail in a check. 10 11 UTILITY BILLING •Paymentus -Improved online payment system •Compatible with more devices allowing an improved customer experience •Integrates with WaterSmart portal promoting full customer engagement 12 13 Bid Purchase EPayment 14 Grant Management Software •RFP Spring 2018 •Installation Summer 2018 15