Resolution No. 00-03 CITY OF TIGARD,OREGO•'
RL^',SvL-v i i0iry NO. vu-��
A RESOLUTION APPROVING BUDGET ADJUSTMENT#6 TO THE FY 1999-00 BUDGET TO
PROVIDE ADMINISTRATIVE SUPPORT TO THE FINANCE DEPARTMENT,TO PAY COSTS
RELATED TO SOFTWARE CONVERSION,AND TO PAY COSTS RELATED TO OTHER
REQUIRED CONTRACTS.
w%iEREAS,the Finance Department needs an additional position to help produce the annual budget and
Consolidated Annual Financial Report and other documents and reports;to support the Budget Committee;
to develop and maintain departmental files;and to provide administrative support,and
WHEREAS,the Finance Department requires funding for completion of work tasks carried over from FY
1998-99 in the conversion of the City's'financial software package to a Windows-based Y2K compliant
system and additional training needed to fully use the new system,and
WHEREAS,the Finance Department has identified the need for additional funding for contracts to ensure
compliance with federal IRS regulations regarding the management of City debt,for safekeeping of City
investments,and for microfilming of heavily used City records,and
WHEREAS,an additional appropriation is required to allow the expenditure of funds on temporary services
reimbursed by the City of Hillsboro.
NOW, THEREFORE, BE IT RESOLVED by the Tigard City Council that: the FY 1999-00 Adopted
Budget be adjusted to increase funding for the Finance Department in the amount of$34,017:
SECTION 1: The appropriations in the policy and Administration program are hereby increased by
$34,017 and the General Fund contingency is reduced by$34,017.
SECTION 2: One Senior Administrative Specialist position is hereby created in the Finance
Departmer_t.
G-�
PASSED: This —day of 2000.
c I -City of Ti and
Council President
ATTEST:
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City Recorder-City of Tigard
RESOLUTION NO.OO-Q-2>
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Item Amount
dministrative Support $16,164
The Administration and Accounting Divisions have no administrative support. Professional and accounting
staff are performing clerical duties necessary to the completion of their jobs. This is a poor use of resources
and limits the ability of the department to perform necessary tasks. The department is requesting the
addition of one Senior Administrative Support Specialist to provide this support. The amount requested is
for Personal Services for five months,office supplss,and a computer. The annualized cost of this position
is$45,000.
Temnorary Stafline $8,525
The City of Hillsboro's municipal court supervisor left. Hillsboro contacted Tigard to see if it could borrow
one of Tigard's Administrative Services staff to serve as acting court supervisor until they fill that position.
Tigard has an employee,Amy Dorland,who was willing to perform this role. i,gard and Hillsboro have
entered into an agreement to formalize this arrangement. Amy remains on Tigard's payroll,but is serving
as Hillsboro's acting court supervisor. Hillsboro is reimbursing Tigard for all of Amy's payroll costs while
she is on assignment. The Finance Department is requesting the appropriation of a portion of this
reimbursement money to hire tempo,ry staff to backfill f r Amy:while she is on assignment in Hillsboro.
Under Local Budget Law these reimbursement monies cannot be directly appropriated without a
supplemental budget. This action,therefore,transfers this amount from contingency. Since the additional
revenue will offset the drawdown from contingency,there will be no negative effect on ending fund
balance at the end of the year.
S rim brook Conversion $40,164
e department began an effort in FY 1998-99 to convert the City's financial software system to a Y2K
compliant,Windows-based system. Work planned for FY 1998-99 was delayed and has been completed in
FY 1999-00. The FY 1999-00 budget,however,assumed that this work had been completed last fiscal
year. The FY 1999-00 budget needs to be adjusted to allow these costs to be paid in the current fiscal year.
In addition,at the time of the purchase of the new system,the City purchased 10 concurrent licenses for the
software. This allows 10 people to use the software at the same time. This covers just the Finance
Department staff. The City needs to install this software on computers in other departments to allow
online look-up and direct entry of data such as cash receipts. The City had to purchase 5 additional licenses
to allow these installations to proceed.
Finally,the Finance Department has experienced significant turnover this year. New staff needed training
in the new software and existing staff required training in additional features available.
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iThe department is requesting$40,164 to cover these additional expenses.
Microfilmine $3,000
y The department is requesting$3,000 to microfilm commercial land use records. The City microfilms
records for archival storage and to protect heavily used files from loss or damage. Funds budgeted for
microfilming in FY 1999-00 have been almost fully expended. The department is requesting additional
3 funding to microfilm commercial land use records. These records are heavily used by staff and the public,
and therefore in danger of loss or damage. Microfilming will produce two sets of film:one for permanent
archival storage and one for use by staff and the public who use these records.
-a
ro�essional Services Contracts $13,500
he department has identified the need for two professional services contracts to ensure compliance with
federal debt regulations and to improve handling of City investments:
Arbitrage Compliance Reporting:
Under federal IRS code,local governments which issue bonds are required to report the amount of arbitrage
earned on bond proceeds to the IRS every 5 years. If arbitrage earnings exceed allowable levels,the excess
must be rebated to the US Treasury. Tigard's five-year report was due two years ago,and has not yet been
made. The Finance Department has entered into a contract with Arbitrage Compliance Services,a
professional consulting firm,to review the City's bond and investment records,and to prepare the required
reports to the IRS. This contract costs$7,500 and was not budgeted.
Third Party Safekeeping for Investments:
The City invests funds both in the Local Government Investment Pool administered'by the Oregon State
Treasury and in instruments offered through investment banks. Assets purchased from investment banks
are traditionally held by trustees for safekeeping. Many governments use a Third Party Trustee(one not
associated:with the investment firm selling the asset)r r ar keeping and reporting _ . This
increases the safety of the asset by a third party"check and balance"and it improves reporting on the
overall performance of the investment portfolio.
Tigard leaves the asset with the firm which sold it the asset for safekeeping. The checks and balances in
this approach are significantly less than if the City used an independent,third party trustee. Also,because
the City purchases investment:from more than one firm,our assets are held in a variety of locations. Itis
more difficult to obtain a consolidated report on our portfolio performance because of the number of
fities involved. The City's total portfolio is approximately$30,000,000,of which half is invested
t
ough private investment banks.
The department is requesting$6,000 to obtain a Third Party Trustee to increase the safety and security of
the City's investments for the remainder of this fiscal year. The annualized cost of this service will be
approximately$13,000.
Total Additional Requirements $81,353
Savings $(47,336)
The Finance Department has experienced significant staff turnover this year. This turnover has produced
salary savings,which the department is allocating to a portion of the increased funding needs. The
department has also identified miscellaneous savings in materials and services,which can be used to
support a portion of these costs.
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$34,017
Net Adiustment Requested
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