In a Daily Independent recent article (Meet-new-City-Council-member-Jerry-Taylor), the new Council Member makes several positive revelatory statements regarding his objectives as a Council Member. In summary his objectives are:
- Abolition of the current Committee Structure & adding a third Council Meeting to the two scheduled monthly meetings
- Mid-Year Budget Revision (In light of the State’s Budget Crisis)
- Creating a New Openness with the Residents of Ridgecrest (this is based on a his belief that the populace does not trust City Hall)
- Make the City Budget Process “Clearer”
- Utilize Technology to allow Residents easier communication with City Staff and Officials
- · Taylor wants to use a personal Blog to communicate with the public
Let me first start by commending Jerry for his exuberance and his enthusiasm. California General Law Cities require that any action be enacted by a majority vote of the entire City Council, in other words no action by a single City Council Member is valid without the necessary votes to constitute a majority from other CC Members.
What may not be generally known is that when the City Council adopts the Budget, the resolution that adopts the Budget gives the City Manager & the Administrative Services Director the authority to amend the budget within general guidelines of purchasing guidelines. Historically, the City has also amended the budget at the mid-year point almost every year since I have been the Chief Financial Officer at Ridgecrest (8 years), with 1 or 2 exceptions. It will be critically important this year since the City adopted a budget that was out of balance (Transfers In did not equal Transfers Out by a significant amount—but that is the subject for another day).
The trust issue in my opinion is an issue that the staff cannot deal with on its own. This must be dealt with primarily by the City Council itself. The Council and the City Manager however must be informed of the facts, from the Department Heads, and not make commitments that the Department Heads cannot possibly fulfill. Open forums, blogs—which the City has had for years, but which have largely have been mostly unused (see Discussion Board).
One of the major issues I found and continue to struggle with was this issue that JT identified as “…Make the Budget Clearer…” When I first arrived in Ridgecrest, in the summer of 2000, the Budget consisted of more than 400 pages of computer generated accounting-style worksheets with an Excel Summary for all appropriated funds. The City Council’s primary question was “…we don’t know what the balances are, we don’t, understand the budget process or the budget document, and we can’t explain it to the public…”
During the next few years, with the City Council’s endorsement, the Finance Department conducted several special purpose audits while overhauling the entire budget system. The first year’s general City audit identified more than twenty (20) audit findings; we also conducted special audits over the next few years – TOT Audit (from the Motel Operators, from which we recovered approximately $100,000 net profit); Nutrition Grant Audit –which showed that the City was significantly subsidizing the County Program up to $100,000 of direct and indirect cost per year; Capital Project Grants which showed that over three (3) years the City had approximately $0.50 million of unreimbursed capital projects.
By the 2002-2003 Fiscal Year the City Finance Department began to receive a series of State and National awards for its Comprehensive Annual Financial Report (CAFR). From the onset of the decade in which the Council provided “marching orders” on refining the financial system, we continued to make ongoing improvements to not only the financial reporting system but also to the budget preparation process.
Within two years if my arrival we resolved all twenty plus general audit items. I then heard from the Council, "...We know what the balances are, and we don't like them!..." During this same time we implemented full cost accounting for the Parks Recreation Dept, Police Dept. and had the vision for implementing overhead City wide.
One of the complicated aspects to Jerry Taylor’s question which has been echoed by many prior Council Members is that the City’s hardware and software system is so cumbersome. The other main issue revolves around budget focus. Possible focus includes:
· Department / Division / Line Item
o Salaries & Benefits
o Supplies & Materials
o Services
o Capital
- Project /Revenue/Expenditure Focus
- Program
- Fund Focus
- Department – Area of Responsibility
- Department – Program
- Other
Ultimately no matter how we decide to focus on the appropriations (budgeted expenditures) the budget has to be balanced by Fund.
There has been no consistent direction on the desired focus. Meanwhile we have made improvements to the budget with the focus on the Department /Division /Line Item focus also combined with a modified version of Project focus.
Many of the Technology goals Council Member Taylor has either already exist, or are relatively easy to implement. Finally, I wish Mr. Taylor the best in his pursuit of his goals.