FY 2014-2015 Operating Budget Presentation to the Board of Representatives

FY 2014-2015 Operating Budget

Presentation to the Board of Representatives

March 26, 2014

Office of AdministrationMichael E. Handler

Director of Administration

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Office of Administration - Overview

Michael E. Handler, Director of Administration The Office of Administration is responsible for administration of municipal finance functions including, but not limited to:

• Accounting• Treasury• Payroll• Budgeting• Purchasing• Central services• Grants• Tax Assessment and Collection• Risk Management• Information Technology

In addition, as the chief fiscal officer for the City, the Director of Administration has all of the powers of Town Treasurers and, as such, is responsible for issuance of all municipal bonds.

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Office of Administration

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City of StamfordOffice of Administration

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Office of AdministrationFY 2013-2014

AccomplishmentsFinancial Health

Standard & Poor’s—Long Term Rating AAA/Stable Affirmed

Finished FY with healthy fund balance allowing us to contribute:• Rainy Day Fund: $3,000,000 • Capital Non-Recurring: $1,495,107 (City) + $2,732,829 (BOE) =

$4,227,936 Total• Other Post-Employment Benefits: $1,685,000 (BOE)• Current-Year Weather Reserve Fund: $2,000,000 Rainy Day Fund Balance now over $21,000,000 Audit• Improvements in Internal Controls over Financial Reporting – Management

Letter reflects reduction in Significant Deficiencies and remediation of WPCA Material Weakness

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Office of AdministrationFY 2013-2014

AccomplishmentsTechnology• MyStamford 311 App for Smartphones• Online Building Permits

Risk Management• Reduced dollar value of new Worker’s Compensation Claims

by $2,210,900 WPCA• $22,000,000 Revenue Bond Issue July, 2013

o New Moneyo Refunding Existing Debto Ratings

• Standard & Poor’s AA+• Moody’s Aa2

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Office of Administration Summary of Operating Budget

RequestTotal Funding Request FY 14-15

(All Activities)$10,066,641

Change from FY 13-14 Adopted $1,451,932 $314,681 excluding pension &

OPEB

Human Capital/Personnel FY 14-15 (All Activities)

80

Change from FY 13-14 Adopted +1

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Office of AdministrationOperating Budget Request by

ActivityActivity Name

Page Number

FY 14-15 Mayor’s Request

FY 13-14 Adopted $ Change

% Change

Director of Administration 32 $417,022 $346,846 $70,176 20.23%OPM 37 $1,341,522 $1,176,619 $164,903 14.01%Grants Admin 43 $359,649 $336,821 $22,828 6.78%Assessor 47 $1,136,050 $886,081 $249,969 28.21%Board of Assessment Appeals 49 $10,496 $8,074 $2,422 30.00%Revenue Services 53 $975,947 $737,031 $238,916 32.42%Taxation Services 58 $589,528 $503,383 $86,145 17.11%Tax Administration 63 $187,592 $155,192 $32,400 20.88%Property Revaluation 67 $487,559 $408,103 $79,456 19.47%Controller 72 $2,315,209 $2,071,827 $243,382 11.75%Technology Management Services 78 $1,519,621 $1,292,899 $226,722 17.54%

Total $9,340,195 $7,922,876 $1,417,319 17.89%

Risk Manager 441 $726,446 $691,833 $34,613 5.00%

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Office of AdministrationPro Forma

Activity NamePage

Number


FY 13-14 Adopted $ Change % Change

Director of Administration Pro-Forma 32 $376,637 $346,846 $29,791 8.59%OPM Pro-forma 37 $1,142,799 $1,176,619 -$33,820 -2.87%Grants Admin Pro-forma 43 $334,359 $336,821 -$2,462 -0.73%Assessor Pro-forma 47 $1,028,379 $886,081 $142,298 16.06%Board of Assessment Appeals* 49 $10,496 $8,074 $2,422 30.00%Revenue Services Pro-forma 53 $910,085 $737,031 $173,054 23.48%Taxation Services Pro-forma 58 $496,191 $503,383 -$7,192 -1.43%Tax Administration Pro-forma 63 $160,860 $155,192 $5,668 3.65%Property Revaluation Pro-forma 67 $457,821 $408,103 $49,718 12.18%Controller Pro-forma 72 $2,075,881 $2,071,827 $4,054 0.20%Technology Management Services Pro-forma 78 $1,249,417 $1,292,899 -$43,482 -3.36%

Total $8,242,925 $7,922,876 $320,049 4.04%

*No OPEB or Pension

Risk Manager Pro-forma 441 $686,465 $691,833 -$5,368 -0.78%

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Office of AdministrationFY 2014-2015 Major Cost

Drivers• Director of Administration Salaries $ 28,700• Revenue Services Salaries $113,200• Assessor Salaries $ 84,400• Assessor Contracted Services $ 90,000

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Office of Administration Compared to other

MunicipalitiesCity Population Director of

Administration OPM Purchasing Central

ServicesGrants Assessor

Revenue /Tax

AdminController Technology

ManagementRisk

ManagementTotal

Stamford 125,113 2 4 3 1.5 3 10 13 16 8.5 FTE* 3 64New Haven 130,749 2 5 4 - - 12 8 11 14 2 58Hartford 124,893 3 6 10 - 2.5 8 17 14.4 16 - 77Waterbury 110,366 2 3 4 3 2 13 22 17 13 1 80Bridgeport 146,425 4 6.5 6 6.5 5 11 14 11 15 - 79

*Adjusted to reflect only City

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Office of Policy & Management

Jim F. HricayDirector of Policy & Management

OPM Summary of Operating Budget

Request

Total Funding Request FY 14-15 (All Activities)

$1,341,522

Change from FY 13-14 Adopted $164,903, increase 14.01%

($33,820) decrease excluding pension & OPEB (2.87%)


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Change from FY 13-14 Adopted unchanged

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OPM Operating Budget Request by Activity

Activity Name Page Number


FY 13-14 Adopted

$ Change % Change

OPM 36 $1,341,522 $1,176,619 $164,903 14.01%

OPM Pro Forma

$1,142,799 $1,176,619 ($33,820) (2.8%)

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OPM Compared to other Municipalities

City Population OPM Purchasing

Central Services Total

Stamford 125,113 4 3 1.5 8.5New Haven

130,749 5 3 - 8

Hartford 124,893 5 10 - 15Waterbury 110,366 2 4 - 6Bridgeport 146,425 6.5 6 6.5 19

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OPMOperational Highlights

• Policy & Management assumed responsibility for maintenance of Authorized Unissued (AUI) debt schedule.

• Central Services acquired digital off-set and postage machine in which: o better serves departmental printing needso eliminates costly printing press maintenance o eliminates need to store caustic chemicals o streamlines monthly postage chargebacks

• Purchasing Department:o responsible for annual output of $90M in procuremento FY 2013 – issued more than 120 bids and/or RFP’so FY 2014 – YTD issued 88 bids and/or RFP’s

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OPMFinancial Highlights

• Closed FY 2012/2013 with surplus

• Increased Rainy Day to $21M+

• Maintained capital project funding detail to ensure compliance to BOF Capital Spending Policy

• Completed Revenue Bond Sale for WPCA in July

• Participated in S&P rating review which reaffirmed Stamford’s AAA rating

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OPMCost Management

• Salary account lower due to turnover and filling of positions at lower levels.

• Purchasing Agent stipend removed from OPM Director and one Buyer position upgraded to Purchasing Agent. (Net savings: $840)

• For the future: Funding of Treasury Debt Analyst

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OPM in the Future• Continue to create more streamlined budget and

forecasting systems and processes to provide more accurate and complete information to internal departments and elected Boards.

• Work closely with Operating Departments to Implement FY 14/15 budget.

• Initiate Capital and Operating budget process review and recommendation to Mayor for FY 15/16 implementation.

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Grants OfficeKaren Cammarota

Grants Officer

Grants Summary of Operating Budget

Request


$359,649




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Grants Operating Budget Request by Activity



FY 13-14 Adopted

$ Change % Change

Grants 43 $359,649 $336,821 $22,858 6.78%

Grants Pro Forma

$334,359 $336,821 ($2,462) (0.73%)

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Grants OfficeOperational Highlights

• 150+ active grants

• Awarded $431,605 Port Security Grant for SCBA equipment, police boat engines, vessel maintenance

• Submitted applications for $700,000 in FEMA projects

• Approved for $ 2.6 M in School Construction grants

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Grants OfficeFinancial Highlights

• Received $23,000,000 in grant fundso $13.4 M Operatingo $1.9 M Capitalo $4.7 M ECS and School Constructiono $2.9 M FEMA Disaster Aid

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Grants OfficeCost Management

• 98% of Grants Administration costs are pre-determined salaries and benefits

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Grants OfficeSignificant Requests for 2014-

2015• No significant changes from 2013/14

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Assessor’s OfficeFrancis K. Kirwin

Assessor

Assessor Summary of Operating Budget

Request


$1,634,105

Change from FY 13-14 Adopted $329,847, increase 25%

$192,438 excluding pension & OPEB 15%


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Change from FY 13-14 Adopted +1 Assessment Inspector

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Assessor Operating Budget Request by

ActivityActivity Name Page

Number


FY 13-14 Adopted

$ Change % Change

Assessor 47 $1,136,050 $886,081 $249,969 28.21%

Board of Appeals 49 $10,496 $8,074 $2,422 30.00%

Property Reval. 67 $487,559 $408,103 $79,456 19.47%Total $1,634,105 $1,302,258 $331,84

725.48%

Assessor Pro FormaAssessor $1,028,379 $886,081 $142,298 16.06%

Board of Appeals $10,496 $8,074 $2,422 30.00%

Property Reval. $457,821 $408,103 $49,718 12.18%Total $1,496,696 $1,302,258 $194,43

814.93%28

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AssessorOperational Highlights

• Continuation of personal property audit program. 76 audits completed in current fiscal year.

• 700 Building permits processed to increase Grand List by $168 million.

• Tax Appeals valued at $71 million in assessed value settled in last fiscal year.

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AssessorFinancial Highlights

• Total recovery in personal property audits is approximately $847,000 and represents 6 to 1 revenue to expense ratio.

• Building activity generated over $3,900,000 dollars in revenue.

• Total tax under appeal of $1.66 million was settled for $1.59 million in last fiscal year.

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AssessorSignificant Requests for 2014-

2015• 1 position – Assessment Inspector

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Tax CollectorWilliam A. Forker

Tax Collector

Tax Collector Summary of Operating Budget

Request


$1,753,067


$171,530 excluding pension & OPEB 12.29%


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Change from FY 13-14 Adopted Unchanged* *FY 2013-14 Budget included $110.000 budget adjustment

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Tax Collector Operating Budget Request by


Number


FY 13-14 Adopted

$ Change % Change

Revenue Services 53 $ 975,947 $ 737,031 $ 238,916 32.42%Taxation Services 58 $ 589,528 $ 503,383 $ 86,145 17.11%Tax Admin 63 $ 187,592 $ 155,192 $

32,40020.88%

Total $ 1,753,068 $ 1,395,606 $ 357,461

24.7%

Tax Collector Pro FormaRevenue Services $910,085 $ 737,031 $173,054 23.48%Taxation Services $496,191 $ 503,383 ($7,192) (1.43%)Tax Admin $160,860 $ 155,192 $5,668 3.65%Total $1,567,547 $ 1,395,606 $171,53

012.29%34

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Tax Collector Operational Highlights

• Online tax payment project completed and fully operational.

• Project continuation for:o Online payment services for Town Clerks Officeo Online payment services for WPCA billing as well as

Assessment and Connection charge billing

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Tax CollectorFinancial Highlights

• Online Payment Processingo For FY 2012-2013 3,575 transactions processed, $2.97 million in payments received

o For FY 2013-2014 (through February 28, 2014)9,167 transactions processed, $7.85 million in payments received

o For FY 2012-2013Budgeted Tax Revenues: $426,353,160Actual Budgeted Revenue Collected: $435,156,886

o Collection Rates FY 2012-2013All Property 98.6Real Estate 98.9Personal Property 99.0Motor Vehicle 93.0

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Tax CollectorCost Management

• Continuous monitoring of and negotiation with vendors to maintain lowest possible cost for service delivery.

• E-Billing for all tax payments. Anticipated 30% cost reduction for postage/printing costs in approximately 18 month period.

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Controller’s Office

David A YanikController

Controller Summary of Operating Budget

Request


$2,315,209


$4,054 excluding pension & OPEB 0.20%


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Controller Operating Budget Request by


NumberFY 14-15 Mayor’s Request

FY 13-14 Adopted

$ Change % Change

Controller 72 $2,315,209 $2,071,837 $243,382 11.75%

Controller Pro Forma

$2,075,881 $2,071,837 $4,054 0.20%

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Controller’s Office Operational Highlights

• Improvements in accounting for ancillary fund transactions: pensions, OPEB, Mill River, Capital Projects, etc.

• Managed through very challenging personnel availability issues related to employee leaves of absence just before and during the year-end close.

• Timely responses to numerous requests for information related to: cash projections, FOIA, pension contributions, capital project expenditures, etc.

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Controller’s OfficeFinancial Highlights

• Annual audits completed for Fiscal Year 2013 with year-over-year improvements in Internal Control over Financial Reporting (reduction in Management Letter Significant Deficiencies and remediation of WPCA Material Weakness).

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Controller’s Office Cost Management

• Took advantage of a vendor license pricing opportunity that expanded key software availability to more users.

• Issued RFP’s to determine cost management opportunities: Banking Services, Professional Auditing Services, etc.

• Participated in other departments’ cost management efforts: Public Safety time & attendance software implementation, HR payroll services providers, etc.

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Controller’s OfficeSignificant Requests for 2014-

2015• Approval for upgrade of Junior Accountant to

Accountant (and Contractual Step Increases) – fully funded by BOE.

• Flexibility to use seasonal workers to address year-end close reporting and workload needs.

• For the future: Explore accounting software application upgrade possibilities to address increased demand for information and need to automate accounting processes.

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Technology Management Services

Michael PensieroDirector of Technology Management

Services

TMS Summary of Operating Budget

Request


$1,519,621

Change from FY 13-14 Adopted $226,722 , increase 17.54%



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TMS Operating Budget Request by Activity



FY 13-14 Adopted

$ Change % Change

TMS 77 $1,519,621 $1,292,899 $226,722 17.54%

TMS Pro Forma

$1,249,417 $1,292,899 ($43,482) (3.36%)

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TMSOperational Highlights

• Successfully implemented numerous online initiativeso 311 App – My Stamfordo Online building permits/Fire/Healtho Online street use/opening requestso Citizen Services requestso Online Police extra duty requesto Increased video capacity for additional board meetings (open government

initiative)o Increased City exposure through use of social media (video, Facebook, Google)

• Upgrades to network infrastructure o 1gbps to desktop at Government Center Planning citywide deploymento Upgrade data backup system from tape to deduplication technologyo Avaya digital telephone system upgrade to include unified messaging

(ongoing and on schedule to complete fall 2014)o Virtualization of 16 servers (standardization and green initiative)

• Upgrades to 277 desktop computers

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TMSHow do we compare?

• Stamford 1,950 8.5 FTE IT employees serving City • New Haven 1,323 14 dedicated IT for City staff

• Norwalk 620 9 dedicated IT staff

• Hartford 1,800 32 IT employees serving City and BOE

• Waterbury 2,450 13 dedicated IT staff

• Greenwich 1,800 10 dedicated IT staff

70:1 Employee to IT staff in private sector

230:1 City of Stamford (Gardner research released 8/13)

Employees

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TMSCost Management

• Established new cellular contract (Verizon) with 11% cost reduction.

• Developed “Green Initiative” to reduce 20%. electrical consumption in data centers by 2020.

• Implemented remote management; reducing help desk wait time by 12%.

• We continually monitor the operating budget looking for even minor reductions throughout the year. As we are a “resource” for all other departments, saving is often seen outside the Technology budget but directly attributed to technology improvements implemented by this department.

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TMS in the Future• Continue to identify and implement revenue

generating improvements to processes and systems.• Re-engineer/automate internal business processes

using the latest technologies.• Identify ways to allow for citizens to interact with the

City using the latest technologies.• Increase open government initiatives.• Expand on successes with online payment processing.• Online sale of Beach Permits.

• Enhance the City’s internal infrastructure and information systems.

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Risk ManagementAnn Marie Mones

Risk Manager

Risk Summary of Operating Budget

Request


$726,446




3


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Risk Operating Budget Request by Activity



FY 13-14 Adopted

$ Change % Change

Risk 441 $726,446 $691,833 $34,613 5.0%

Risk Pro Forma

$686,465 $691,833 ($5,368) (0.78%)

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Risk ManagementOperating Budget Request by

ActivityActivity Name

Starting Page

Number


FY 13-14 Adopted

$ Change % Change

BOE Medical/Life

431 $ 35,512,843 $ 35,974,159 (461,316) (1.3%)

City Medical/Life

431 $ 32,027,750 $ 30,755,489 1,272,261 4.1%

Charges for Services (non-medical)

431 $ 13,081,624 $ 13,594,157 (512,533) (3.8%)

Insurance Premiums

433 $ 2,644,818 $ 2,680,943 (36,125) (1.4%)

Payments-Retained Losses

435 $ 779,611 $ 1,130,443 (350,832) (45%)

Workers’ Compensation

437 $ 8,930,749 $ 9, 090,938 (160,189) (1.8%)

Risk Manager

438 $ 726,446 $ 691,813 34,633 4.8%

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Risk Management Operational Highlights

• Risk Management provides comprehensive and consolidated coverage for the City and the Board of Education to protect residents and taxpayers.Three (3) years of data and current premium trends were utilized to calculate this budget submission which represents the best approximation of required coverage for all loss lines and expenses for FY 2014/2015.

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Risk Management Operational Highlights

• Risk Provided 2,758 training events to City of Stamford and Board of Education Employees during FY 2012/2013.

• Insurance requirements were written for every RFP and insurance was reviewed for every contract, grant, and lease.

• Insurance was reviewed for every building use, field use, and special event permit (over 3,000 per year).

• Storm Sandy claim was finalized.

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Risk Management Financial Highlights

• Reduced dollar value of new Worker’s Compensation Claims by $2,210,900.

• The Risk Management Fund overall budget (not including health insurance for City and BOE) decreased by $512,513 compared to the prior fiscal year.

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Risk Management Cost Management

• Workers’ compensation medical bills continue to be reviewed and discounted where possible.

• Police, third party administrator for workers’ compensation, insurance broker, and Risk Management continue to work closely with managers to better manage losses and facilitate timely return to work.

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Office of AdministrationFY 2014-2015 Major Cost

Drivers• Director of Administration Salaries $ 28,700• Revenue Services Salaries $113,200• Assessor Salaries $ 84,400• Assessor Contracted Services $ 90,000

Documents

FY 2014-2015 Operating Budget Presentation to the Board of Representatives