AGENDA #1

Wednesday, February 27, 2002

Finance Department

Initial Budget Presentation to the Mayor and Council

Fiscal Year 2002-2003

MISSION STATEMENT

The primary mission of the Finance Department is to provide financial oversight and direction to help the Town make the best possible use of its assets.

BRIEF SERVICES DESCRIPTION (For 2002-2003, responsibility and oversight for technology

 shifted to new Department)

• Provide support for the budget process, including an accurate and informative budget document and estimation of Town revenues.

• Oversee Town centralized purchasing and contracts.

• Monitor the Town’s fiscal position and provide for appropriate investments and borrowings.

• Provide payroll and accounts payable services.

• Efficiently provide and maintain accurate and informative financial records in a manner that supports the Town’s operations and enables Town to receive clean opinions by independent auditors.

• Provide centralized revenue collection services for all Departments and collection of taxes for Town and County citizens.

DEPARTMENT REVENUE ESTIMATES

The Finance Department has no revenues that offset operating costs.

DEPARTMENTAL BASE BUDGET COST ESTIMATES

CATEGORY	2001-2002 Original Budget	2001-2002 Revised Budget	2001-2002 Estimated	2002-2003 Requested	% Increase (Decrease) from Original Budget
Personnel	665,699	665,699	627,188	631,315	-5.17%
Operations	169,668	235,308	231,229	221,292	30.43%*
Capital Equipment	-	-	-	-	-
TOTAL	835,367	901,007	858,417	852,607	2.06%

KEY BASE COST ISSUES

Personnel expenses are down significantly due to proposed elimination of one part-time

 Purchasing Technician position and reduction in hours for Buyer position.  This change

 is possible due to elimination of supplies inventory function and automation of purchasing requisition function.

*Increase in operating costs is due primarily to transfer of costs related to computer system for

financial accounting (previously shown in Technology Division budget) being transferred to the Accounting & Collections Division.   Cost for technology will now be shown in the separate Technology Department budget.  In addition, the cost of maintenance and on going vendor support for financial accounting system increased over last year.

KEY SERVICES THAT ARE GOING WELL

• Budget preparation and meeting all financial reporting requirements in timely manner.
• Purchasing and contract oversight, including development of procurement card system.
• Borrowing and debt management (lease-purchase agreements and issuance of bonds).

KEY SERVICES THAT CAN BE IMPROVED

• Extension of test purchasing card program to all departments, and use of purchasing

cards to facilitate business meetings and training arrangements.

PROPOSED REDUCTIONS

Because of extreme budget constraints this year, all departments are preparing recommended reductions for consideration by the Manager.