Finance & Property Services Department 2020 Budget As - PowerPoint PPT Presentation

Finance & Property Services Department 2020 Budget As recommended by Mayor Frey on August 15, 2019 October 24, 2019 1

Department Overview October 24, 2019 City of Minneapolis 2

Who we are and what we do October 24, 2019 3

2020 Current Service Level October 24, 2019 City of Minneapolis 4

Current Service Level Changes – 2019 to 2020 2019 adopted 2020 Current Service Level Change Program name General Other FTEs General fund Other funds FTEs % Description fund funds Controller $7,571,000 $257,000 59.0 $8,108,000 $269,000 59.0 7.0% Inflationary increases in operation costs Procurement $3,667,000 $1,149,000 40.0 $3,848,000 $1,188,000 40.0 4.6% Inflationary increases in operation costs -12.9% Reallocation of budget line items & One-time Revenue & Collections $6,967,000 45.0 $6,065,000 45.0 expenditures in 2019 ($950,000) Payroll $1,839,000 16.0 $1,919,000 16.0 4.4% Inflationary increases in operation costs Risk Management & Claims $2,019,000 9.0 $1,999,000 9.0 -1.0% Relatively flat. Executive/Administration $680,000 4.0 $706,000 4.0 3.8% Inflationary increases in operation costs Budget $1,549,000 5.0 $1,051,000 5.0 -32.1% One-time dollars of $550,000 in 2019 October 24, 2019 5

Current Service Level Changes – 2019 to 2020 2019 adopted 2020 Current Service Level Change Program name General General Other funds FTEs Other funds FTEs % Description fund fund Investments, Capital & Debt $724,000 3.0 $443,000 3.0 -38.8% Reallocation of budget line items Management Development Finance $1,635,000 10.0 $1,709,000 10.0 4.5% Inflationary increases in operation costs Property Services $264,000 $23,154,000 72.5 $258,000 $23,786,000 72.5 2.7% Inflationary increases in operation costs Total $24,896,000 $26,579,000 263.5 24,107,000 27,242,000 263.5 -0.2% October 24, 2019 6

2020 Change Items October 24, 2019 City of Minneapolis 7

Asset Management Strategy Repurposing one existing 2020 2021 2022 2023 2024 2025 department FTE to a budget Revenue division staff to enable the budget division to oversee capital Expense $200 budgets in addition to operating Net Impact $200 budgets Above Figures Shown in 000s of dollars Using this position to create an asset management system that FTE incorporates data from all major City asset categories into one format to aid in budget prioritization, financial reporting and risk management. Expense in 2020 is for software and condition assessments October 24, 2019 8

Credit Card Fees for Utility Billing Requesting $400,000 ongoing 2020 2021 2022 2023 2024 2025 General Fund resources for Revenue $400 $400 $400 $400 $400 $400 increased credit card fees. The funds will be used to pay for Expense $400 $400 $400 $400 $400 $400 credit card fees resulting from Net Impact - - - - - - the payment of utility bills via Above Figures Shown in 000s of dollars credit card. The general fund FTE increased expense will be offset by the general fund overhead charge to the enterprise funds. FPS is also exploring options to create a separate mechanism for and extra charge to consumers who use credit cards October 24, 2019 9

Grants Oversight FPS requests $100,000 2020 2021 2022 2023 2024 2025 ongoing General Fund Revenue $100 $100 $100 $100 $100 $100 resources for one full time Expense $100 $100 $100 $100 $100 $100 grant accounting position in Net Impact - - - - - - the Controller’s Division. This Above Figures Shown in 000s of dollars position will assist in grant accounting, subrecipient grant FTE 1.0 1.0 1.0 1.0 1.0 1.0 monitoring, grant management, and technical assistance to recipient departments for all grants received by the City. October 24, 2019 10

Expanded Internal Investment Strategy One additional staff member 2020 2021 2022 2023 2024 2025 at an estimated cost of Revenue $200 $200 $200 $200 $200 $200 $120,000 to assist with the Expense $120 $120 $120 $120 $120 $120 accounting, reporting and Net Impact -$80 -$80 -$80 -$80 -$80 -$80 administration required by Above Figures Shown in 000s of dollars expanding the amount of FTE 1.0 1.0 1.0 1.0 1.0 1.0 assets being managed internally in lieu of external management. Increased revenues are more interest income due to paying less fees to outside managers. October 24, 2019 11