Fort Walton Beach Council agenda — 10-22-2007 special agenda — reading text

they are beneficial, realistic and able to be implemented. 4. 3 Refined recommendations, as appropriate. Deliverables: Improvement Recommendations i TASK 5.0: PREPARE DRAFT STUDY REPORT Objectives: To prepare a draft report documenting the study results. i;. To discuss the draft report with management and obtain comments. Alternative Services Delivery Study for Fort Walton Beach, Florida Page 1 - 5  2.0 City Management Section 13 ( Title III) of the City Charter enables City Council to appoint a City Manager to be the administrative head of the government. Section 17 identifies the duties of the City Manager, which includes supervising the administration of the affairs of the City, enforcing the ordinances, keeping Council informed as to the financial condition of the City, preparing and submitting the annual budget, and performing other duties as prescribed by the City Charter or Council ordinance or resolution. 2. 1 OrQanization and StaffinQ The City Manager function will be reviewed from both a City- wide perspective as well as the Department perspective. The City Manager Department ( 0200) currently includes four ( 4) positions. They are: City Manager Budget and Grants Manager Executive Assistant Public Information Officer The Budget and Grants Manager was added to the City Manager Department during fiscal year 06/ 07. The FY 07/ 08 Recommended Budget anticipates moving the Budget and Grants Manager position to the Finance Department. This position is responsible for development and monitoring of the annual budget, attending budget meetings, preparing and monitoring grants, and engaging in special analyses. The Executive Assistant provides office support to the City Manager and generally manages the considerable information flow ( oral and written) that occurs in a high level management function. Alternative Services Delivery Study for Fort Walton Beach, Florida Page 2- 1  City Management The Public Information Officer produces various City documents, including the Annual Report, press releases, newsletters, and various departmental communications. The position serves as a liaison to area media. One- half of the position' s duties have focused on the government access TV channel, with duties that include shooting, editing, script writing, and taping various events. This has been an active position that has created multiple opportunities for communicating with the public. The organization chart in the Recommended for the Budget City Manager Department shows 10 departments, plus two ( 2) of the three ( 3) positions noted above. This represents a total of 12 positions reporting directly to the City Manager. The Budget and Grants Manager position is not shown, as the intention is to establish that position as part of the Finance Department. At the current time ( September 2007), 13 positions would be considered as reporting directly to the City Manager. This number does not include the Finance Director position ( addressed below). Exhibit 2- 1 on the following page represents the current structure as noted in the Recommended City Budget. Alternative Services Delivery Study for Fort Walton Beach, Florida Page 2-2  City Management City Manager CITY COUNCIL CITY MANAGER ( 1) PUBLIC EXECUTIVE INFORMATION ASSISTANT ( 1) OFFICER ( 1) COMMUNITY PARKS & DEVELOPMENT RECREATION DIRECTOR DIRECTOR FIRE CHIEF POLICE CHIEF GOLF CLUB PUBLIC WORKS ADMINISTRATOR DIRECTOR HUMAN PURCHASING RESOURCES DIRECTOR DIRECTOR INFORMATION UTILITIES TECHNOLOGY DIRECTOR DIRECTOR FULL-TIME EQUIVALENT SUMMARY ACTUAL MID-YR BUDGET 03/ 04 04/ 05 05/ 06 06/ 07 07/ 08 CITY MANAGER 1. 00 1. 00 1. 00 1. 00 1. 00 BUDGET & GRANTS MANAGER 1. 00 EXECUTIVE ASSISTANT 1. 00 1. 00 1. 00 1. 00 1. 00 PUBLIC INFORMATION OFFICER 1. 00 1. 00 1. 00 1. 00 1. 00 FULL TIME EQUIVALENT ( FTE) TOTAL 3. 00 3. 00 3. 00 4. 00 3. 00 Alternative Services Delivery Study for Fort Walton Beach, Florida Page 2-3  City Management 2.2 Maior Poli'cies and Ooerationallssues Organization Structure Finding: The Budget and Grants Manager position is properly established as a direct report to the City Manager. The City Manager is tasked by City Charter Section 17) " to prepare and submit to the Council the annual budget estimate". In Title IV ( Finance Procedures), in which duties of the Finance Director are described, there is no reference to budget estimating, budget development, or budget monitoring. Title IV speaks more to accounting, assessments, custody of funds, disbursement, and financial reports rather than the budget function. Most writers in the field of public administration regard the budget activity as a management function rather than a finance function. The Government Finance Officers Association ( GFOA) rewards municipalities for developing a budget that serves as a policy document, an operations guide, a financial plan, and as a communications device. Budgeting is recognized as a management function. Further, there are many serious challenges facing Finance for the next year or two. The Finance Department needs to focus on those challenges ( see Section 5. 0) before taking on more major and critical activities such as budgeting. Once the department is working well under its new leadership, then the matter of transferring budget to Finance could be reconsidered. It is noted that the Recommended Budget is one of the best written and structured budget documents we have seen, and the City is deserving of the GFOA award received for the last 11 years. Recommendation # 1: Retain the Budget and Grants Manager position within the City Manager Department as a direct report. Alternative Services Delivery Study for Fort Walton Beach, Florida Page 2-4  City Management Finding: The organization structure is inconsistent with the requirements of the City Charter. The inconsistency is in reference to the Finance Director position. The City' s organization chart portrayed in the Recommended Budget indicates that the Finance Director reports directly to Council, and shows a dotted line ( coordination, liaison, communications?) relationship to the City Manager. Section 53 of Title IV of the City Charter makes it clear that the City Council appoints the City Clerk, City Attorney, the Recorder, and the Finance Director, and establishes their respective compensation levels. Section 21 of Title IV of the City Charter makes it equally clear that the Finance Director is subject to the supervision and control of the City Manager. Section 22 further notes that the " forms for all such ( financial) accounts shall be prescribed by the Finance Director, with the approval of the City Manager" ( capitalization provided). Section 22 also indicates that " financial reports shall be prepared for each quarter and fiscal year and for such other periods as may be required by the City Manager". MAG believes that it is an incorrect interpretation to assume that the Finance Director, while appointed by the City Council, reports to the City Council. If a position is " subject to the supervision and control of the City Manager", we conclude that the position reports directly to the City Manager. The reporting relationship has a direct impact on the manner and nature of internal working relationships. It is common practice in municipalities for the Finance Director to report to the City Manager rather than the City Council. There are municipalities that establish an internal audit function that may report directly to the council. That is a different function with a different purpose than that which is conceived under the City Charter. In Fort Walton Beach, the Finance Director should report to the City Manager just as other department heads. 2: Change the formal City organization chart to reflect the Recommendation # Finance Director as a direct report to the City Manager. Alternative Services Delivery Study for Fort Walton Beach, Florida Page 2-5  City Management Finding: There are an excessive number of positions reporting directly to the City Manager. There are currently 13 positions reporting directly to the City Manager, including the Budget and Grants Manager. And, with the recognition that the Finance Director should report directly as well, that number reaches 14. This number exceeds the normally accepted span of control, particularly for such complex functions as exist