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HomeMy WebLinkAboutRes2015-061 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2015-061 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING RESTORATION OF A FULL-TIME EXEMPT POSITION IN THE FINANCE DEPARTMENT TITLED ASSISTANT FINANCE DIRECTOR, AND APPROPRIATING FUNDS WHEREAS, until 2001, the City of Seward Finance Department included the position of Controller, serving as the deputy to the Finance Director; and WHEREAS, beginning in 2001, the Controller and Finance Director positions were combined as a cost-savings measure, with cautions that when the stable tenured staff experienced turnover in the future, the department would likely be unable to manage the workload without restoration of the position; and WHEREAS,the average staff tenure in 2001 was 12.5 years and is now 6 years;total city- wide expenses in 2001 were $17.6 million and in 2013 were $37.3 million; and WHEREAS, the Finance Department has experienced turnover in all but one accounting position in the past four years and turnover multiple times in some positions during that time, resulting in instability and the inability of the staff to meet important deadlines such as timely financial reporting and timely audit completion; and WHEREAS,failure to add back this important position leaves the department vulnerable to additional turnover by staff who are burned out,and makes it difficult to provide adequate transition planning for future retirements and to cross-train for purposes of providing stability to department work efforts. 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 a full-time exempt position in the Finance Department to be entitled"Assistant Finance Director"with a position range 20-23 at an estimated salary and benefit cost of approximately$110,000. Section 2. Funding in the amount of$165,000 is hereby appropriated from the General Fund unassigned fund balance account no.01000-0000-3400 to the finance department salary and benefit accounts no.01000-1140-6XXX,to cover the costs of this new position plus additional staffing costs associated with the recent conversion to a new financial accounting system,staffing overtime due to shortfalls pending replacement of two to three position vacancies, and additional audit preparation costs associated with the delay in completion of the annual audit. CITY OF SEWARD,ALASKA RESOLUTION 2015-061 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 13th day of July, 2015. THE CITY OF SEWARD,ALASKA 49-40/71 ,&71-th/2,aeK,1 an Bardarson, Mayor AYES: Casagranda, Keil, Squires, Darling, Bardarson NOES: None ABSENT: Butts, Terry ABSTAIN: None ATTEST: ii Jol anna Kinnelfr MC . Ci y Clerk (City Seal) ®®®tuna.,,4 OF Se11/4.0 ..... el;s5,0 • o ;:j ° r� c cv ® SEAL, 7 .1/4 5+��:Sed'"auur.r.e Council Agenda Statement Meeting Date: July 13, 2015 Through: Jim Hunt, City Manage S," From: Kristin Erchinger, Finance Director Agenda Item: Restore Full-Time Finance Position BACKGROUND &JUSTIFICATION: Until January, 2001, the City's finance department consisted of eight positions, including the Finance Director, Controller, Accounting Technicians (payroll, accounts payable, accountant), Utility Billing, Cashier/Receptionist, and Purchasing/Benefits Clerk. In 2000, the former Finance Director was transferred to the city manager's department,and the finance department lost one full-time position when the Controller and Finance Director positions were combined, leaving the department with seven positions. At the time of the staffing reduction, average staff tenure with the City finance department was 12.5 years;the current average is six years. In 2001, four staff had more than 12 year's tenure each;now two have more than nine years and three have less than five year's tenure. In 2001, six staff had a combined tenure with the City of Seward finance department of 75 years; today's combined tenure is 38 years. In 2001, total City-wide expenses were $17.6 Million and in 2013 were $37.3 Million, representing increased workload. With respect to the staffing reduction,the Finance Director expressed concern about the probable adverse impacts of losing this important position, including: increased overtime, higher auditing costs, less timely grant reporting and reimbursement, reduced collections on receivables, delayed financial reporting, delays in completing the audit and the budget processes, and negative impacts on employee morale. Despite these anticipated impacts,the Director expressed the willingness of staff to do their best to manage with cut-backs until the department began to experience turnover, at which time it was anticipated staff would be unable to manage the workload without restoring the position. Most of the 2001 concerns raised regarding adverse impacts have materialized--with the exception of delays in the budget process2--and the time has come when staff is unable to adequately and timely manage the work of the department without restoring this position. In the past four years,the department has experienced turnover in all but one accounting position making it difficult to train new staff and cover for employee leave time and position vacancies. The change in longevity may be attributed,in part,to the conversion of the public employee's defined benefit retirement system to a defined contribution system, where there is less incentive for employee longevity. The City is receiving fewer qualified applicants for vacant positions,and the number of applicants with experience and/or interest in governmental accounting is very sparse. 1 Excludes Finance Director 2 Likely due to the creation of a Biennial Budget process beginning in 2010, reducing staff time associated with budget preparation. 1 0 V� In the past month,two finance staff have given notice of intent to retire and/or resign within the next few weeks. In addition, pending retirements in the next few years necessitate the development of a glide path to ensure stability of the department. Restoring this key position will allow for cross-training, employee development, and an effective and efficient staffing transition plan. INTENT: To restore the previous Controller position eliminated from the budget in 2001, to be replaced by a full- time exempt position titled Assistant Finance Director. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan(document source here): X 2. Strategic Plan(document source here): X 3. Other(list): X FISCAL NOTE: The anticipated range for this position is Range 20-23,consistent with the previous Controller position. The conservative estimate of salary and benefits for this position is approximately $110,000 (estimated hourly salary of between $28.22 and $32.73 DOE). This resolution appropriates $55,000 in salary and benefit costs necessary to cover costs incurred to-date for conversion to a new financial accounting system,covering for staffing shortfalls pending replacement of two to three position vacancies, summer accounting assistance, and additional audit preparation costs associated with the delay in completion of the annual audit. Approved by Finance: ,) z ATTORNEY REVIEW: Yes No X RECOMMENDATION: City Council approve Resolution 2015- ` authorizing the restoration of a position in the finance department to be titled Assistant Finance Director, and appropriating funds.