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Fy 2019 Departmental Budget Review Sessions with the Budget Advisory Board

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Fy 2019 Departmental Budget Review Sessions with the Budget Advisory Board FY 2019 DEPARTMENTAL BUDGET REVIEW SESSIONS WITH THE BUDGET ADVISORY BOARD 100 NORTH ANDREWS AVENUE 8TH FLOOR CONFERENCE ROOM FORT LAUDERDALE, FLORIDA, 33301 MAY 23, 2018 – 6:00 P.M. Board Members Attendance June Page, Chair Present Drew Saito, Vice Chair Present Gregg McKee Present [arrive @ 6:15pm] James McMullen Present Fred Nesbitt Present David Orshefsky [Telephonic participation – Board passed vote] Wesley Parker Absent Johnnie Smith Absent Motion made by Mr. Saito, seconded by Mr. McMullen to allow Mr. Orshefsky to participate via telephone. Staff Attending Stanley Hawthorne, Assistant City Manager Christopher Lagerbloom, Assistant City Manager Laura Reece, Budget Manager John Herbst, City Auditor Kristin Tigner, Structural Innovation Manager Kirk Buffington, Director of Finance Linda Logan-Short, Chief Financial Officer, Deputy Director of Finance Veronica Wade, Revenue Collections Supervisor Laura Garcia, Controller Phil Thornburg, Director of Parks and Recreation Enrique Sanchez, Deputy Director of Parks and Recreation Anthony Greg Fajardo, Director of Sustainable Development Director Alfred Battle, Deputy Director of Sustainable Development Director Sherrilynn Chess, Business Manager Porshia Goldwire, Community Inspection Manager Ella Parker, Urban Design and Development Manager Budget Advisory Board May 23, 2018 Page 2 Departments Reviewed 1. Finance. Led by Ms. Short, she and staff presented the department’s FY 2019 General Fund Budget requests, recent successes, major challenges, and their top five budget modification requests. SEE ATTACHED PRESENTATION, http://www.fortlauderdale.gov/departments/city-clerk-s-office/board-and- committee-agendas-and-minutes/budget-advisory-board 2. Parks and Recreation. Led by Mr. Thornburg and Mr. Sanchez, they presented the department’s FY 2019 General Fund Budget requests, recent successes, major challenges, and their top five budget modification requests. SEE ATTACHED PRESENTATION, http://www.fortlauderdale.gov/departments/city-clerk-s-office/board-and- committee-agendas-and-minutes/budget-advisory-board 3. Sustainable Development. Led by Mr. Fajardo, he and staff presented the department’s FY 2019 General Fund Budget requests, recent successes, major challenges, and their top five budget modification requests. SEE ATTACHED PRESENTATION, http://www.fortlauderdale.gov/departments/city-clerk-s- office/board-and-committee-agendas-and-minutes/budget-advisory-board Adjourn There were no further discussions to come before the Board; the FY 2019 Departmental Budget Review Session was adjourned at 8:06p.m. Attached Documents FY 2019 Department Budget Requests: Finance, Parks and Recreation, and Sustainable Development. Finance Department The mission of the Finance Department is to safeguard the City’s assets and financial affairs, provide for the long‐term financial stability, integrity, and accountability of the City’s financial resources, and ensure expenditure of City funds are conducted in a manner that will instill our neighbors’ trust and provide best value to the City. The department is a valuable internal financial resource to all City departments, and strives to provide excellent service to investors and other entities conducting financial and purchasing transactions in accordance with accounting and procurement standards for state and local governments. To achieve its mission, the Finance Department provides services through the functions of financial administration, utility billing and collection, accounting and financial reporting, revenue and debt, and procurement services. As an integral part of the Internal Support Platform, Finance ensures all City departments follow sound fiscal management procedures, and the fair, open, and transparent procurement of goods and services, thereby allowing the City to obtain fiscal efficiencies, while maximizing resources and lessening financial burdens. Page 2 of 50 Finance Department FY 2018 Adopted Budget Organizational Chart TOTAL FTEs ‐ 71.0* ADMINISTRATION ‐ 4 Director of Finance 1 Deputy Director 1 Management Analyst 1 Administrative Assistant I1 ACCOUNTING & PROCUREMENT ‐ 13 UTILITY BILLING & COLLECTIONS ‐ 26 FINANCIAL REPORTING ‐ 17 Controller 1 Manager Procurement & Contracts 1 Revenue Collection Supervisor 1 Assistant Controller 1 Assistant Manager Procurement & Contracts 1 Revenue Collections Manager 1 Senior Accountant 2 Senior Procurement Specialist 2 Senior Customer Service Representative 2 Accountant II 3 Procurement Specialist II 4 Senior Accounting Clerk 4 Accountant I 1 Procurement Specialist I2Customer Service Representative II 7 Accounts Payable Supervisor 1 Procurement Assistant 1 Customer Service Representative I9 Payroll Supervisor 1 Administrative Assistant I1Clerk III 1 Senior Accounting Clerk 2 Administrative Aide 1 Administrative Aide 1 Payroll Specialist 1 Accounting Clerk 4 TREASURY ‐ 8 BUSINESS TAX ‐ 3 Treasurer 1 Senior Customer Service Representative 1 Senior Accountant 1 Customer Service Representative II 1 Accountant II 3 Clerk III 1 Accountant I2 Senior Accounting Clerk 1 Amended Adopted Difference *Full Time Equivalent (FTE) includes new position(s) FY 2017 FY 2018 70.0 71.0 1.0 Page 3 of 50 Finance Department General Fund Finance - General Fund Departmental Financial Summary Financial Summary - Funding Source FY 2018 FY 2019 FY 2019 FY 2018 FY 2017 FY 2018 FY 2018 Percent Year‐to‐Date as Department Budget Amended Actual Amended Estimate Difference of 03/31/2018 Request Recommended vs. FY 2019 General Fund ‐ 001 5,978,598 6,776,076 3,240,297 6,234,302 6,894,640 6,650,697 (125,379) (1.9%) Total Funding 5,978,598 6,776,076 3,240,297 6,234,302 6,894,640 6,650,697 (125,379) (1.9%) Financial Summary - Program Expenditures FY 2018 FY 2019 FY 2019 FY 2018 FY 2017 FY 2018 FY 2018 Percent Year‐to‐Date as Department Budget Amended Actual Amended Estimate Difference of 03/31/2018 Request Recommended vs. FY 2019 Administration 1,013,749 1,691,061 819,512 1,688,202 1,599,507 1,611,931 (79,130) (4.7%) Central Accounting 1,731,730 1,839,290 900,011 1,684,799 1,940,687 1,918,625 79,335 4.3% Treasury 1,529,839 1,498,994 690,252 1,186,643 1,563,297 1,433,108 (65,886) (4.4%) Procurement 1,399,296 1,400,487 682,221 1,361,028 1,431,063 1,401,738 1,251 0.1% Business Tax 303,983 346,244 148,299 313,630 360,086 285,295 (60,949) (17.6%) Total Expenditures 5,978,598 6,776,076 3,240,297 6,234,302 6,894,640 6,650,697 (125,379) (1.9%) Financial Summary - Category Expenditures FY 2018 FY 2019 FY 2019 FY 2018 FY 2017 FY 2018 FY 2018 Percent Year‐to‐Date as Department Budget Amended Actual Amended Estimate Difference of 03/31/2018 Request Recommended vs. FY 2019 Personal Services 4,920,504 5,023,058 2,504,301 4,719,784 5,187,282 5,132,778 109,720 2.2% Operating Expenses 1,058,094 1,753,018 735,996 1,514,518 1,707,358 1,517,919 (235,099) (13.4%) Total Expenditures 5,978,598 6,776,076 3,240,297 6,234,302 6,894,640 6,650,697 (125,379) (1.9%) Full Time Equivalents (FTEs) 45.0 45.0 45.0 45.0 45.0 45.0 ‐ 0.0% FY 2019 Major Variances Operating Expenses Decrease due to one‐time expenses from Fiscal Year 2018 (54,983) Decrease due to a reduction in investment management services (177,320) Page 7 of 50 FY 2019 Budget Modification Requests FY 2019 BUDGET MODIFICATION SUMMARY Finance - 001 General Fund Priority # of Net Request Type Title of Request Page # # Pos Cost Increase the efficiency of Accounts Payable and increase 1 Position ‐ New 1.00 22,379 12 electronic payments 2 Program ‐ New P‐Card Audit 0.00 25,000 14 3 Program ‐ New Increase the number of compliant businesses in the City 1.00 (79,807) 15 Program ‐ 4 Lien Search Services 0.00 (172,500) 17 Revised 5 Program ‐ New Bloomberg Terminal Subscription Service 0.00 24,000 19 2.00 (180,928)$ Page 11 of 50 Last Update: 05/03/2018 Total Request: 22,379.00 FY 2018FY 2019FY 2019 FY 2019 BUDGET MODIFICATION FORM Finance - 001 General Fund Priority No: 1 Title of Request: Increase the efficiency of Accounts Payable and increase electronic payments Request Type: Position - New New Position(s) Requested: Position(s) Eliminated: Change in Part-Time: Total Change in FTEs: 1.00 0.00 -0.50 0.50 Basis of justification: Improvement, revenue generating, mandated, cost reduction, workload change. Please state what will be the consequence if this request is not funded? The Accounts Payable (AP) division is requesting one part-time position be converted to a full time position in order to reduce the number of clerical errors being made; and allow the supervisor time to properly classify vendors to ensure that all rebate opportunities are being maximized. Accounts Payable is a value-adding function within the City, not a cost center. This division is responsible for receiving, distributing and processing payments for all vendor invoices. Process improvement, error reduction and strategic analysis remain top objectives of the AP division. One of Finance Department’s major challenges is to hire, retain and train staff. The part-time position often results in frequent turnover as temporary employees often leave for a full time position somewhere else once they are trained. As a result, overall productivity in the division is negatively affected. One of the goals of the AP division is for the staff to focus less on clerical data entry and more on analytical, strategic tasks . However, last fiscal year this division manually processed approximately 36,756 invoices and issued 12,079 checks totaling $155,752,894. With the emphasis being placed on payment processing, the Accounting Clerks are not able to complete their other tasks including sending past due reminders to the departments and reconciling statements. There has also been an increase in clerical errors as the clerks are rushing and have to take shortcuts to keep up with the workflow.
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