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HomeMy WebLinkAboutStaff Report 3.B 01/25/2010e IA, CA LIFORl~T1A CITY OF PCT f1 LU1V Jgnuc~ry 25, 2O 1 I g ~ T A ~~~l~l ~L-~ 1~~ Agenda Title: Adopt a Resolution to Restore Funding for an Accounting Meeting Date: .Assistant II -Business License and Accounts Receivable Position January 25, 2010 Meeting Time: 7:00 PM Category: ^ Presentation ^ Appointments ^ Consent ^ Public bearing ^ Unfinished Business ®New Business Department: Director: Contact Person: Phone Number: Finance Sandra Sato ~~~~ Sandra Sato 778-4352 Total Cost of Proposal or Project: Name of Fund: The estimated cost to fund a frill-time Accounting Assistant General Fund II through the end of the fiscal year is $21,000. The Account Number: 1100.11420.51 110 estimated annual cost for the position is $63,000. Salary savings from fillingfull time positions with temporary and Current Fund Balance: Per Nov. 2, 2009 revised pant-time staff will fund the position through the end of the budget report ($2,279,350) fiscal yearn • Recommendation: It is recomtreended that the City Council take the following action: Adopt a Resolution to restore funding for an Accounting Assistant II position in the Finance Department to perform business license, Marina and Airport billing, collection, and customer service duties. 1. ^ First reading of Ordinance approved unanimously, or with ~inanimous vote to allow posting prior to second reading 2. ^ i'irst reading o~f Ordinance approved without unanimous vote: Ordinance has been published/posted prior to second reading; see Attachment 3. ^ Other action rewiring s}~ecia'~1 notice: Notice has been given, see AttaehmenT " _- ._ _, summary ~tatement~- - - - -- - - - -- --- - - The recommended action authorizes the restoration of funding for an Accounting Assistant II position. Earlier in ~~ the year, due to an employee retirement, the business license and miscellaneous accounts receivable Accounting Assistant II position became vacant and the work was performed by a temporary employee, who will cease working for the City at the end of January 2010. Without afull-time Accounting Assistant II, the City will be unable to issue business licenses or perform miscellaneous accounts receivable billings for the Marina, Airport, and other City departments. - - Attachments.t"o Agenda Packet Item: Resolution Reviewed by Finance Director: Reviewed by Citv Attorney: A r e it ~ Manager: ~~ Date: - ~ Date: Date: /'//~/p Rev. # 1 Date Last Revised: 1!71]0 File: s:/agenda/2010-01-25 accountin asst restore ,n,N ~`' CITY OF PE'I'AI,UIVIA, CALIFORNIA JANUARY ZS, 2OlO AGENDA REPORT FOR ADOPTION OF A RESOLUTION TO RESTORE FUNDING FOR AN ACCOUNTING ASSISTANT II -BUSINESS LICENSE AND ACCOUNTS RECEIVABLE POSITION 1. RECOMMENDATION: It is recommended that the City Council adopt the attached Resolution authorizing the restoration of funding for a vacant Accounting Assistant II position in the Finance Department to perform business license and miscellaneous accounts receivable duties. 2. BACKGROUND: The Finance Department has six authorized Accounting Assistant II positions. However the department is now staffed with only five positions because the funding for the business license and miscellaneous accounts receivable Accounting Assistant II position was reduced to a part time/temporary position when the position became vacant earlier this year due to an employee retirement. Funding for the part-time positions will be exhausted this month. The Accounting Assistant II performs miscellaneous accounts receivable tasks and all duties related to billing, processing, and issuing business licenses for 2010. The City's MOU with AFSCME provides that work of this nature be handled at the Accounting Assistant level. Revenue from business license taxes is estimated to be $750,000 in the current fiscal year. 3. DISCUSSION: Of the five remaining positions, one is assigned to Accounts Payable. The other four positions are assigned to handle utility billing and funded either directly or indirectly through the Cost Allocation Plan from the Water/Wastewater funds. While it is certainly possible and desirable to cross-train all the Accounting Assistant positions to handle both utility billing and business licenses/miscellaneous account receivables; the workload for this function is the equivalent of one position. Therefore, there will be no savings to the General Fund resulting from the re-allocation of the work done by the business license/miscellaneous account receivables position to the four Accounting Assistants currently handling Utility Billing. Furthermore, it is not possible for these employees to absorb the additional workload of business licenses/miscellaneous billing due to the conversion from bi-monthly to monthly billing. Likewise, the Accounting Assistant II assigned to accounts payable also will be taking on additional work with the elimination of a long-term part-time position which will cover part of the cost of restoring funding for this position. 4. )FINANCIAL IMPACTS: The estimated cost to fund afull-time Accounting Assistant II through the end of the fiscal year is $21,000. The estimated annual cost for the position is $63,000. There is projected to be $35,000 in salary savings from filling several Finance Department full time positions with temporary and part-time staff in fiscal year 2010 and 2011. These savings will fund the position through the end of the fiscal year as well as providing a carry forward amount, which combined with temporary and part time salary budgets, will fund the position through 2011. Funding for Business Licensing and Miscellaneous Receivables Position: Accounting Assistant II, step I $63,000.00 Funding for Business Licensing: Budget -temporary Business Licensing & AR AAII (Finding 1 100.1 1420.51120) $26;700.00 Budget -part-time Accounts Payable AAII (Funding 1100.1 1410.51120) $26,700.00 Salary savings carry forward $9,600.00 Total Funding for Business Licensing and Miscellaneous Receivables Position $63,000.00 a ADOPT A RESOLUTION TO RESTORE FUNDING FOR AN ACCOUNTING ASSISTANT II - BUSLNESS LICENSE AND ACCOUNTS RECEIVABLE POS1T10N WHEREAS, the business license and miscellaneous accounts receivable Accounting Assistant II position became vacant and the work was performed by a temporary employee, who will cease working for the City at die end of January 20l 0; and, WHEREAS, miscellaneous receivable and licensing billings, and the collection of $750,000 in annual business license revenue cannot be clone without the appropriate staffing; and WHEREAS, an Accounting Assistant lI position is needed to handle the workload; and WHEREAS, a portion of the funding can be obtained by eliminating the existing appropriation for two General Fund part-time positions; and WHEREAS, savings from filling full time positions with temporary and part-time staff provide a remaining adequate funding source. NOW, THERFORE, BE IT RESOLVED that the City Council does hereby authorize the restoration of funding for the position of Accounting Assistant II to be fimded from General Fund and from salary savings, effective with the adoption of this Resolution.