Memorandum

City of Lawrence

Finance Department

 

TO:

Thomas M. Markus, City Manager

FROM:

Bryan Kidney, Finance Director

CC:

Diane Stoddard, Assistant City Manager

Casey Toomay, Assistant City Manager

Lori Carnahan, Human Resources Manager

Date:

04/25/2016

RE:

Authorize City Manager to adjust staffing levels in Finance Department resulting in decrease in salary expenditures

 

Background

Over the past year, I have had the opportunity to review various procedures within the finance department. While many things are being done well in the office, there are also many processes that could be improved with a focus on better customer experiences.

 

Utility Billing Operations

The Customer Service Supervisor splits their time between the primary responsibility of billing 36,000 bills and supervising a dozen customer service employees. In review of the two functions of billing and customer service supervision, staff believes that customers would be best served by splitting the functions between two people. Billing being the primary focus for one person will streamline the billing operations and increase quality control. Staff further believes that having another person focused on managing overall utility billing operations will create efficiency in how we interact with the customers.

 

Accounting Functions

Finance has been making an effort to increase the transparency of financial operations to the public. Staff has also made an effort to increase the level of services provided to the executive team by being a resource to the other departments for reporting, budgeting and debt financing. This increase in reporting and the level of services provided has been well received. However, since there is a limited number of staff with the technical skills needed to provide these services, the quality of other services are being stressed. In addition, the responsibility of putting together the annual operating budget for the City has been delegated to the Finance Department.

 

In review of the purchasing function within the finance department, staff deduced that the majority of work done by the purchasing officer was routine and administrative. Since the position has been vacant for several months, the department has shifted duties to other positions in the finance department and some back to the originating departments.

 

The city would see a higher value in having another accountant within the department that could assist with purchasing when needed. The accountant would allow someone to do more of the day-to-day accounting tasks, freeing up others to focus on higher level of services.

 

The Finance Department currently does not have a staff member with the administrative assistant skills needed to assist with the budget process. The Human Resources Division has a part-time position whose hours could be adjusted to assist the finance department during the budget process.

 

Budget Impact

This proposal includes adding three employees and increasing the amount of hours for another position. However, the overall restructuring has zero impact on the 2016 and future budgets due to not filling open positions:

 

1.    Not fill a current open position for Field Services Representative, pay grade 904 for annual savings of $38,527. 

2.    Not fill a current open position for Admin Support II, pay grade 903 for annual savings of $34,165.

3.    Not fill an anticipated open position for Admin Support II (Part-Time), pay grade 903 for annual savings of $15,949.

4.    Eliminate the Customer Service Supervisor position, pay grade 906 for annual savings of $60,851.

5.    Not fill a current open position for Purchasing Officer position, pay grade 906, for annual savings of $54,116.

 

Total annual salary reduction of $203,608.

 

Create two new positions, add an additional accountant position, and adjust current part-time administrative support position:

 

1.    Create Billing Specialist position, pay grade 905 with an estimated salary of $58,000

2.    Create Customer Service Manager position, pay grade 908 with an estimated salary of $68,000.

3.    Open a new Accounting position, pay grade 908 with an estimated salary of $60,000.

4.    Increase the number of hours for current part-time Administrative Support III from May through August with an estimated increase in salary of $5,547

 

Total annual salary costs of $191,547 with a total net salary savings of $12,061.

 

Recommendation

This restructuring has an estimated net decrease in salary of $12,061. Staff recommends this restructuring plan and to decrease the 2016 revised budget accordingly. See attached current organizational chart and recommended organizational chart.

 

Action

Authorize City Manager to adjust staffing levels in the Finance Department resulting in an estimated net decrease in salary of $12,061.