HomeMy WebLinkAboutRes2018-043Sponsored by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2018-043
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY TO RESTORE FUNDING FOR AN
ACCOUNTING TECHNICIAN POSITION DELAYED DURING THE
2018/2019 BUDGET PROCESS, AND APPROPRIATING FUNDS
WHEREAS, during the 2018/2019 budget process, the City faced a budget deficit resulting
largely from State budget cuts, necessitating a recommendation to eliminate, downsize and delay
hiring for some positions pending more certainty regarding State funding impacts and budget
performance; and
WHEREAS, one of the positions which was delayed in 2018 was an accounting technician
position, delayed due to a vacancy in the position at the time the budget was being considered; and
WHEREAS, total City-wide expenses in 2001 were $17.6 Million and 2018 expenses are
estimated at $35 Million, with the same size Finance staff handling a much larger and more complex
set of books for the City, albeit aided by greater efficiencies from technology; and
WHEREAS, the Finance department continues to experience heavy workloads, combined
with the need to provide training to newer staff and ensure transition planning for key positions,
straining the ability of the department to keep up with major important projects such as the meter
exchange project, tariff changes and their impact on utility billing, new software and operational
changes related to automated meter reading, new software related to improvements to customer
online utility bill payment options, and other department impacts; and
WHEREAS, failure to restore a position in Finance will continue to adversely impact the
department's ability to meet important deadlines, ensure the success of important projects like the
meter exchange, prevent errors such as the recent tariff challenges which resulted from lack of
sufficient manpower to adequately test structural billing changes, and prevent additional turnover of
staff who are burned out, thus making it difficult to provide adequate transition planning for future
retirements and cross -train for purposes of providing stability to the priority work of the department.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Council hereby authorizes the restoration of the position of Accounting
Technician in the finance department with an estimated salary and benefit cost of approximately
$80,247.
Section 2. Funding in the amount of $80,247 is hereby appropriated from the General Fund
unassigned fund balance account no. 01000-0000-3400 to the finance department salary and benefit
CITY OF SEWARD, ALASKA
RESOLUTION 2018-043
accounts no. 0 1000- 1 140-6XXX.
Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 23`d day
of April, 2018.
THE CITY OF SEWARD, ALASKA
Q)aK;�� �
David Squires, MaY6
AYES: Keil, McClure, Slater, Squires
NOES: Casagranda, Towsley
ABSENT: None
ABSTAIN: None
ATTEST:
enda J. Ballou, WC
City Clerk
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1
Council Agenda Statement
Meeting Date: April 23, 2018
Through: Jim Hunt, City Manager
From: Kristin Erchinger, Finance: Director PP
Agenda Item: Restore Accounting Technician Position
BACKGROUND & JUSTIFICATION:
During the biennial budget process, the City's budget was reduced to eliminate some City positions and
delay hiring of others, to address continued uncertainty regarding state budget cuts and their downstream
impacts on the City. Some of the primary areas of uncertainty included the State revenue sharing
program, payments on -behalf of employers for unfunded pension liabilities, and the funding for
community jails. While the state's revenue sharing program has not been eliminated, and the state
continues to make contributions to employers on behalf of pension liabilities, there is still uncertainty
surrounding the jail funding and the viability of these other funding sources into the future. Prior to
passage of the 2018/2019 budget, the City Council requested to add back some of the eliminated
positions and at the same time, the position of accounting technician was delayed due to a staffing
vacancy at the time the budget was passed.
The City has closed the books on 2017 with an overall deficit of approximately $477K. Excluding one-
time transfers out of the General Fund totaling $933K, the General Fund surplus would be approximately
$456K.
Approximately three years ago, the City Council authorized restoring a deputy finance director position
in Finance; the position was eliminated in 2000 when the average staff' tenure with the City finance
department was 12.5 years; the current average staff tenure is less than six years. The new position was
filled approximately two years ago, but after only one year, the accounting technician position became
vacant and has remained so for nearly a year. Once again, staff shortages have resulted in difficulty
cross -training for key positions, missed deadlines, and inadequate staff training on jobs such as utility
tariffs and billing systems.
The loss of trained staff is due, in part, to the elimination of the defined benefit retirement plan, causing
goverrurient entities statewide to experience challenges hiring qualified staff to fill position vacancies,
where there is less incentive for employee longevity. In addition, position vacancies make it difficult to
train new staff and cover for employee leave time, and cause staff burnout. 'Fhe auditors describe the
challenges of hiring qualified governmental accounting staff as a common theme throughout Alaska,
with key staffing vacancies, the norm. A negative political environment has also made it difficult for
staff to remain committed to working in the public sector, and some staff are leaving as a result,
In the past five years, the department has, experienced turnover in all but two accounting positions
making it difficult to train new staff and cover for employee leave time and position vacancies.
' Excluides Finance Director
As the department faces vacancies in key positions in the near future, it is important to develop a glide
path to ensure stability of the department. Restoring this key position will allow for cross -training,
employee development, and a more effective staff transition plan,
INTENT:
To restore the Accounting Technician position eliminated from the 2018/2019 Biennial Budget.
CONSISTENCY CIJECKLIST: Yes No SEA7
I Comprehensive Plan (documetil source here): X
—Stiategic —flan (Jocument ... so—urce he" -re): X
3. Other (1W): X
FISCAL NOTE:
Excluding one-time non -recurring appropriations totaling $93 3 K (to fund Lowell Creek Tunnel - $400K,
Capital Acquisition Fund - $255K, and payment of underbilled Water Fund hydrant lees - $278,049) the
General Fund will end the year with a surplus of $4561, Including these one-time appropriations
however, results in a deficit of ($477K). This resolution appropriates $80,247 in salary and benefit costs
necessary to restore this position to the budget. The ability to sustain personnel levels in the General
Fund will continue to depend on strong local economic activity and will continue to be impacted by the
trickle -down impact of the State's budget on local government services.
Approved by Finance:
ATTORNEY REVIEW: Yes —.,— No. X.
RECOMMENDATION:
City Council approve Resolution 2018-_,_, authorizing the restoration of the accounting technician
position in the finance department, and appropriating funds,