Agenda Item C.2
CPMS DISCUSSION/ACTION ITEM
Meeting Date: March 18, 2025
TO: Mayor and Councilmembers
SUBMITTED BY: Luke Rioux, Finance Director
SUBJECT: Finance Department Priority Setting Workshop - Fiscal Year 2025- 26 Annual Work Program
RECOMMENDATION:
Discuss work priorities and adopt the Annual Work Program for Fiscal Year 2025-26 for the Finance Department.
BACKGROUND:
The Finance Department Annual Work Program provides a regular, structured mechanism to allow the Council to review and discuss the Department’s work commitments and staffing resources, consider individual Councilmember’s project ideas and provide direction on the Finance Department’s (Department) work priorities for the next fiscal year. The draft F iscal Year (FY) 2025-26 Annual Work Program also summarizes work progress and accomplishments for the past fiscal year, FY 202 4-25, and lays the groundwork for the Departme nt budget, which will be presented to Council during the upcoming budget workshops.
The available budget and staffing are finite, and the list of possible City-wide work efforts is growing. Therefore, a priority -setting process is useful to allow the City Council to establish policy priorities. A regular priority-setting process allows the Department to plan for and assign work within available resources in a structured way. This system works better and is more efficient than attempting to shift resources ad hoc to new projects as Councilmembers identify and introduce new ideas and work priorities during the year.
DISCUSSION:
Purpose
The purpose of this workshop item is to update the Council on existing work commitments and recent accomplishments and to p rovide the Council with an opportunity to discuss work priorities for the Finance Department for the upcoming fiscal year. The Annual Work Program covers the core functions of the Finance Department: Finance Administration, Accounting Services (general accounting, audit, accounts payable and payroll), Budget Management, Treasury, Business Licenses and Permits, and support with P urchasing (e.g., credit card program, travel, and vendor management). The Annual Work Program 1 Meeting Date: March 18, 2025
reflects the day-to-day responsibilities of each division, as well as those priority projects that the department reasonably expects it to achieve in the coming fiscal year. The Annual Work Program also shows a list of long -range projects that exceed the department’s projected capacity to take on next fiscal year, but which staff will attempt to tackle either as staff capacity unexpectedly becomes available, or in future year work programs.
Tentative completion dates for projects and deliverables are best e stimates and should therefore not be interpreted as a commitment.
The Annual Work Program creates a regular mechanism for the Council to establish the Department’s work priorities and is also an opportunity for the Council to propose and consider ideas for new work projects and shape the work plan for the coming year.
Staffing and Budget Constraints
Setting work priorities must of course occur within the constraints of budget and available staffing. Goleta is still a small city with limited staff and finite resources. Given the large number of competing possible work priorities, the City must take care not to overcommit at any given time and instead be prepared to take a measured approach for delivery of services and projects . Over time, much can be accomplished if available staffing resources are concentrated, and projects are tackled sequentially. It is also important for the City to keep some capacity in reserve to deal with unanticipated events and needs beyond the City’s control that inevitably arise in any given year, particularly in the Finance Department, as the Finance Department is primarily a support department. The workload is influenced by city -wide department demands and shifts in legislative and regulatory requirements.
FISCAL IMPACTS:
The Annual Work Program for FY 2025-26 is consistent with the current adopted budget with respect to existing positions and work commitments, including consultant resources.
It also lays the groundwork for the next budget cycle, assuming a continuation of existing staff resources.
ALTERNATIVES:
The Council can direct staff to revise the Finance Department’s FY 2025-26 Annual Work Program prior to adoption or choose not to adopt an Annual Work Program.
LEGAL REVIEW BY: Isaac Rosen, Acting City Attorney
APPROVED BY: Robert Nisbet, City Manager
ATTACHMENTS:
1. Draft Fiscal Year 2025-26 Annual Work Program – Finance Department
2. Fiscal Year 2025-26 Annual Work Program – Finance Department Presentation 2 ATTACHMENT 1
Draft Fiscal Year 2025-26 Annual Work Program – Finance Department 3 1
FISCAL YEAR 2025-26 ANNUAL WORK PROGRAM
FINANCE DEPARTMENT
Adopted - TBD
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FISCAL YEAR 2025-26 ANNUAL WORK PROGRAM
FINANCE DEPARTMENT
Table of Contents
EXECUTIVE SUMMARY ......................................................................................... 3 Introduction and Purpose ...................................................................................... 3 Department Staffing and Organizational Structure ................................................ 3 Workload Considerations ...................................................................................... 6 Finance Department ................................................................................................ 6 Role of the Department ......................................................................................... 6 Programs/Ongoing Work Efforts ............................................................................ 9 Key Accomplishments and Milestones ................................................................ 15 Department Projects for FY 2025-26 .................................................................. 16 Long-Range Projects Contingent on Staff Capacity ............................................ 18
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EXECUTIVE SUMMARY
Introduction and Purpose
The FY 2025-26 Annual Work Program summarizes projects and work efforts proposed for the Finance Department and for the upcoming fiscal year, considering both ongoing, existing commitments and potential new projects. It is intended to provide the City Council with an overview of the current work of the Finance Department and an opportunity to consider and give direction concerning future work. The Annual Work Program creates a regular mechanism for Council to share ideas for new work efforts and discuss the work priorities. It encompasses the work of the department’s major functions, which include Finance Administration, Accounting Services, Budget Management, Payroll, Treasury, Business Licenses and Permits and Purchasing.
The Annual Work Program considers how the work of the Department proposed for the upcoming year will support the City’s Mission Statement and Core Values, as articulated in the City’s Strategic Plan. It furthermore serves as a basis for upcomin g budget plan development on an annual basis.
Department Staffing and Organizational Structure
Current Staffing
Available staff capacity is a fundamental constraint on the work that the Finance Department can undertake at any given time. Many projects are multi-year efforts, which are still in process and require a continued commitment of resources. Taking on new projects is possible only to the extent that staff capacity becomes available throu gh the completion of existing commitments or new staffing resources are dedicated.
As a basic principle, the Annual Work Program seeks to utilize City staff fully first and to rely on consultants and contract services only when City staff capacity is com pletely committed. The Annual Work Program also recognizes that use of consultants and contractors may be appropriate to meet workload demands generated by projects of a one-time or short -term nature that exceed available capacity of full -time City staff. The use of outside consultants or contract services to assist the Department is also constrained by the Department's budget and also by the finite capacity of managers to manage consultant work in addition to full-time staff.
When fully staffed, the Department consists of a total of 12.0 FTEs. The staffing of these divisions is further detailed below. Figure 1 below shows the organization structure of the whole Department.
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Table 1: Finance Department Current Staff Levels
POSITION TITLE FULL-TIME
(FTE)
PART-TIME (FTE)
Finance Director 1.00
Accounting Manager 1.00
Accounting Supervisor 1.00
Accountant 2.00
Budget Analyst 1.00
Management Assistant 1.00
Accounting Specialist 1.00
Accounting Specialist (Accounts Payable) 1.00
Accounting Specialist (Accounts Receivable) 1.00
Accounting Specialist (Payroll Specialist) 1.00
Sr. Office Specialist (Business License Specialist) 1.00 TOTAL FTE 12.00 0.00
Note: The Finance Department has an hourly Finance Intern (pending reclassification of a Department Aide that is net neutral) position that is currently vacant and is not included in the FTE count. There were no vacant positions at the time this report was prepared.
In addition to full -time staff, the Department is supp orted by consultants on both an ongoing basis and on an as-needed basis. The services provided by consultants include the following: Property tax and sales tax analysis and audit services; cannabis consulting services (including monitoring and compliance and tax audits); actuary services for retiree health liability valuation; municipal financial advisory services; audit and financial reporting services; investment services; and financial consulting services. Starting in FY 24/25 and beyond, additional con sulting services will be utilized for assistance with transaction and use tax analysis and audit services, transient occupancy tax audits, and short-term vacation rental monitoring and compliance.
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Figure 1: Finance Department Structure – Organizational Chart
Finance Director
Accounting
Manager
Accounting
Supervisor
Accounting
Specialist
(Payroll)
Accounting
Specialist(AR)
Accounting
Specialist (AP)
Accounting
Specialist
Accountant
Accountant
Budget Analyst
Senior Office
Specialist
Management
Assistant
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Workload Considerations
The Finance Department provides support to all departments as part of its core operating functions. Finance workload capacity is directly impacted by the activity of other departments, including when depar tments incur new staff positions, new programs, or new projects, which in turn results in increases in workload volume. As projects, initiatives, activities, employees, and consultants increase or changes in other departments, it directly impacts the Finan ce Department’s workload along with that of other support departments. The increased workload includes staff time associated with review, internal audits, processing, fund reconciliation, and department support related to financial analysis, reporting, budgeting, accounting transactions, and payroll.
Finance staff workload is also impacted by unplanned events, changes in processes, or new software implementations that may require new financial oversight and reconciliation efforts, in addition to internal control evaluation, and fiscal impact assessments.
In addition, staff workloads are directly impacted by increases or changes in business license permit activity, cannabis activity, short -term vacation rental activity, and tax transactions.
Finance Department
Role of the Department
The Finance Department oversees the financial operations of the City and is responsible for the overall financial system to ensure the integrity of the City’s finances through accurate planning and recording of transacti ons, including providing superior financial services, maintaining public trust, and promoting governmental efficiency, effectiveness, and accountability. The department facilitates the optimal use of resources, implements control measures, and establishes policies and procedures aimed at accurately accounting for, safeguarding, and maximizing the value of the City’s assets to meet the goals of the organization.
The department is led by the Finance Director who also serves as the City Treasurer. The Finance Director leads a team of twelve full-time employees, ensuring management and the City Council are informed of all matters affecting the financial stability of the City. The Finance Department has received financial publication awards for the City of Goleta, for its Annual Comprehensive Financial Report (ACFR) and Two -Year Budget Plan, with Special Recognition in Capita Budgeting. Finance continues to ensure that its reporting meets the rigorous criteria and program standards established and administered by the Government Finance Officers Association (GFOA).
The Finance Department consists of the following core functions:
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Finance Administration
Accounting Services
Budget Management
Payroll
Treasury
Business Licenses and Permits
Purchasing
A general overview of each core function is described below.
Finance Administration
Finance Administration provides leadership to the five other areas of Finance, including establishing financial policies and procedures, internal controls, managing consul tant contracts and relationships, and day-to-day oversight of the department and its functions.
The administration oversees the department’s objective to accurately record and report the financial transactions to reflect the City’s financial position.
Accounting Services (Financial Reporting, General Ledger Management, Accounts Payable, Grants Management)
Accounting is responsible for the maintenance of an effective financial accounting system, which accurately reflects the financial operations of the City through transparent financial reporting and offers a framework for financial planning and analysis. Accounting includes working with our independent auditors, internal audits, accounts payable, processing all City disbursements, managing the City’s general ledger and capital assets, monitoring special revenue funds, and other general and specialty accounting and reporting duties.
Accounting provides support to all departments. Other duties include user fees, cost allocation plans, Development Impact Fee (DIF) adjustments and DIF reporting, possessory interest reporting, Government Accounting Standards Board (GASB) implementation, vendor management, 1099 reporting, and grants management.
Grants Management is responsible for all financial activities rel ated to grant administration and provides oversight of city-wide grants, including reconciliation of funds (actuals and budget), reporting requirements, and support with submissions and collections from the granting agencies. It also prepares the Schedule of Federal Awards related to the Single Audit, ad -hoc reports for evaluations, and analysis requests by various City departments.
Budget Management
Budget Management is responsible for coordinating and preparing the two -year budget plan, mid -cycle budget, five-year financial forecast, and long -range financial plan, including producing financial analysis for City staff, management, and City Council so decision-makers have a comprehensive understanding of the financial consequences of 10 8
decisions. The budget i ncludes an ongoing review of the City’s budget, monitoring the City’s overall financial position, and preparing budget reports. Personnel budgeting, contract costing, salary schedule, and schedule of authorized positions.
Payroll
Payroll administers the C ity’s payroll system, from overseeing timecard data entry to processing salary and benefit payments. It ensures that all payroll and vendor records are maintained and reported in accordance with federal and state tax laws, including compliance with CalPERS reporting and Fair Labor Standards Act (FLSA) overtime provisions. In FY 22/23, the Finance Department assumed additional functions previously assigned to Human Resources and now provides direct support for timely preparation, processing, and reconciliation of payroll, employee benefits, and deductions.
Treasury (Cashiering, Investments, Debt)
Treasury is responsible for billing and revenue collection services, including tax administration, to both customers and other departments and tracking accounts receivable. Treasury also manages the City’s investment program and debt administration. Treasury monitors cash flow daily and cash flow projections for liquidity and is responsible for the preservation, enhancement, and accountability of cash assets and long-term debt management city-wide.
Business Licenses and Permits
Business Licenses and Permits are responsible for facilitating the processing of general and specialty business license applications, which includes essential tasks such as payment processi ng. Beyond this, the department administers the City’s Cannabis Business License Program, overseeing implementation, compliance, and maintaining a comprehensive database of cannabis businesses. The department additionally manages the Short -Term Vacation Re ntal Program, processing license applications, monitoring online platforms portals for compliance with regulations, and addressing resident concerns. Furthermore, the department undertakes the responsibility of reconciling and preparing payments for the Tourism Business Improvement District (Visit Santa Barbara), the Santa Barbara County Public Health Department with Tobacco licensing , and reporting and remitting to the Division of the State Architect related to ADA compliance (SB 1186) . The Department is c ommitted to transparency and responds promptly to Public Record Requests for City Business Licenses. The department prioritizes continuous improvement by regularly updating ordinances, processes, and procedures.
Lastly, we conduct public education on applying for licenses through our city permit portal, which aims to inform the community about licensing requirements and programs.
Purchasing (Support Role)
In FY 22/23, Finance staff began working on transitioning the core Purchasing functions to the newly cr eated General Services department. Purchasing is responsible for overseeing and implementing the City’s purchasing ordinance and assisting departments 11 9
with their procurement needs while meeting all applicable legal requirements. Purchasing assists with review and approval of Purchase Requisitions and issuing Purchase Orders.
Purchasing is also responsible for assisting departments with surplus and disposal of City property. Finance staff will continue to be involved with Purchasing in a general support role, though it is primarily with managing the city credit card (Cal -Card) program, budget compliance, general ledger account issues, vendor management, and closing out year - end encumbrances.
Programs/Ongoing Work Efforts
Table 1 below lists the ongoing responsibilities, work efforts, and programs that the Finance Department carries out on a day -to-day basis. These tables also do not reflect any work efforts associated with responding to and managing unplanned or emergency events and do not include all work efforts of the departments.
Table 1: Day-to-Day Staff Responsibilities
FINANCE ADMINISTRATION
Provide management support and oversight of all finance functions, including supervision of department staff, staff development, and performance evaluations.
Conduct weekly finance team meetings, and other internal staff meetings as needed, and attend meetings with other local government agencies.
Participate in weekly E-team meetings and monthly Capital Improvement Project (CIP) meetings, and coordinate and schedule meetings with consultants, including sales and property tax meetings, audit meetings, and actuary meetings.
Review and audit all financial transactions, including check requests, invoices, electronic transfers, wire transfer requests, budget adjustment requests, and journal entry requests.
Oversee and manage the department’s budget, including the development of the Annual Work Program.
Manage contracts and relationships with department consultants and serve as project manager, including overseeing the Finance Department’s Request for Proposal process.
Oversee and coordinate annual financial audits, street audits, single audits, and gas tax audits. Review and approve all final financial reporting documents.
Assist with federal and state grant compliance audits, FEMA, and CalOES.
Oversee citywide financial policies and procedures, including accounts payable, accounts receivable, budget amendments, cash handling, credit cards, donations, travel, purchasing, surplus and disposal, escheatment, and write-offs.
Assess internal controls and recommend changes to processes, as necessary.
Review and sign-off for retention period or disposal of Finance Department’s files in accordance with file retention policy.
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Keep updated with new and ongoing changes in government finance and accounting and attend conferences and trainings to ensure compliance with new GASB statements and other reporting requirements as required by state or federal law.
Oversee and manage the City’s Investment Program.
Oversee and manage the City’s Debt Management Program.
Oversee Cannabis Business License Program, including application process, forms, site inspections, tax collections, and ongoing monitoring and compliance.
Oversee Short-Term Vacation Rental Program, including review of all applications and signing off on tax certificate.
Oversee the City’s Master User Fees and Charges Schedule, including assisting with Development Impact Fee Schedules
Oversee the City’s liabilities, including CalPERS pension and OPEB liabilities.
Review all actuarial reports and manage relationships with consultants and actuaries.
Provide administrative support to the Finance and Audit Standing Committee, including preparing agendas and packets.
Provide a final review of all Finance Department’s staff reports, including monthly check registers, monthly investment transaction reports, quarterly financial reports, quarterly treasure reports, annual budget plans, comprehensive annual financial reports, and annual state controller reports.
Review all citywide staff reports for fiscal impacts and provide support on budget recommendations and fiscal analysis on an as needed basis.
Participate and prepare a presentation of information for Goleta’s Annual LEAD program as it relates to Finance.
Provide support to Citywide Strategic Plan.
Oversee the Goleta Facilities Financing Authority.
Finance and Audit Standing Committee oversight.
Annually prepare and file Annual Development Impact Fee Financial Report.
Respond to public, other local agency, and vendor inquiries.
ACCOUNTING SERVICES (FINANCIAL REPORTING, GL MANAGEMENT) Financial software account maintenance and review.
General ledger updates, including preparing journal entries.
Year-end schedules, journal entries for audit and closing fiscal year, including Schedule of Expenditures of Federal Awards for Single Audit, revenue, and expenditure accruals in accordance with GAAP, and compensated absences schedules and other liabilities.
Coordinate and communicate with the City’s independent auditors. Gather data and files for auditor review and provide statements and detail overview of City processes.
Maintain and manage capital asset schedules, including calculating depreciation expense and working with other City departments to assign useful lives to new assets.
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Reconcile reserve accounts and fund balances on a budgetary and actual basis, including grant reconciliations.
Prepare Annual Comprehensive Financial Report and submittal to GFOA for Certificate of Achievement for Excellence in Financial Reporting Program.
Prepare and review required State Controller Reports, including Financial Transactions Reports, Street Reports, and Government Compensation Reports.
Manage Chart of Accounts, including assigning project tracking account codes.
Reconcile developer deposit account balances and prepare reports on a quarterly basis to the Finance and Audit Standing Committee Manage Performance Security Schedule, and other liabilities, including prepaid and deposits.
Conduct internal audits, including cash audits, fee calculations, contract rates, and amounts. Provide findings and guidance.
Provide guidance and support to all departments on all financial-related procedures and financial analysis.
Assist and review the Successor Agency to the Redevelopment Agency for the City of Goleta's annual ROPS schedule. Confirm RPTTF activity and fund balance that may exist.
Perform timely monthly bank reconciliations.
Monitor uncashed checks and deposit accounts with no activity and oversee the escheatment process.
Monitor aging accounts receivable and recommend write-offs according to policy.
Reconcile other City software that contains financial information to the City’s financial system.
ACCOUNTING SERVICES – ACCOUNTS PAYABLE
Receive and review invoices, including invoice routing to departments daily.
Flag invoices if necessary and provide follow-up support. invoices if necessary and provide follow-up support.
Scan and prepare invoices in DocuSign and electronically route for signatures, including utility invoices and non-PO/PO invoices.
Review and edit check incoming DocuSign envelopes from other departments for invoice accuracy.
Export electronically signed invoices to PDFs, upload in Incode 10, data entry, and review coding.
Process Travel Claim Reimbursements in accordance with travel policy and update travel forms annually to conform to the most recent per diem rates.
Oversee the City’s Cal-Card (credit card) program, including reviewing all city credit card transactions, issuing city cards, and ensuring compliance with the policy.
Assist departments with invoice issues, including revised invoices, missing or lost receipts, or liquidating purchase orders.
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Review and audit all invoices for proper sales and use tax charges and withhold additional amounts if necessary.
Conduct weekly check runs, which include printing check registers and printing physical checks for mailing.
Citywide petty cash management.
Oversee positive pay (check disbursement) reports and upload to the bank’s website every week and monitor banking activity for discrepancies and fraud.
Prepare monthly check register reports for Legistar.
Monthly schedule of late invoice payments.
Track consultant expenditures on an as-needed basis, such as cannabis consultant charges and related business license applications.
Generate and mail annual 1099’s (1099-NEC and 1099-MISC) to applicable vendors.
SMIP/Green Fee Reconciliation and Payment Remittance.
PAYROLL
Perform audit and data entry of timesheets on a bi-weekly basis, including reconciling payroll changes, deductions, and specialty pay and double-check in the financial system.
Initiate tax payments, including tax reports and benefit payments, and issue quarterly and annual compensation reports.
CalPERS bi-weekly reporting, and specialized reporting as needed.
Provide COBRA administration support.
Monitor payroll tax law in conjunction with Human Resources.
Maintenance of payroll system in conjunction with Human Resources.
Provide customer service to all City employees, and departments, including time entry training and special adjustments.
Monitor tracking only and project accounting codes used with Time Entry.
Employee earnings statements and annual W2s.
Prepare payroll-related journal entries.
Payroll processing, including assembling payroll binder and bank transfer payment.
Manage calculations of regular rate of pay and special payroll for retro adjustments or other extraordinary items.
Reconcile employee time tracking in MAGNET Permit Tracking System to Incode Payroll.
Setup new employees in the payroll system, verifying pay adjustments, reconciliation of approved salary schedules and personnel action forms, reconciling and verifying benefit deductions, and assist with timely payment of benefit invoices.
BUDGET MANAGEMENT
Manage the City’s budget process, including the development of a budget calendar, request forms, and schedules
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Publish the City’s Two-Year Budget Plan under GFOA criteria and submit bi- annually for a distinguished budget presentation award, and publish internally the Mid-Cycle budget document.
Manage and update the Five-Year Forecast, including tax revenue and expenditure assumptions.
Manage and update Long Range Financial Plan.
Provide updates to the City Council and departments on economic and financial conditions and policy issues affecting the budget.
Provide ongoing budgetary guidance and support to all City departments.
Review all year-end carryover budgets and manage the schedule of adjustments.
Manage personnel budgeting, including fiscal impact analysis of personnel changes, calculating fully burdened hourly rates, and Schedule of Authorized Positions.
Draft Quarterly Financial Reports.
Update cost of service analysis for providing library management services and assist with preparing library budgets for Buellton and Solvang.
Prepare ad-hoc budget reports and financial analysis at department requests.
Update budget policies and provide ongoing support to departments.
Manage all budget adjustment and appropriation request forms.
Annually update City Cost Allocation Plan.
Annually prepare and oversee special tax rolls for Library Special Tax and Street Lighting Tax
Calculate the annual GANN appropriations limit.
TREASURY (REVENUE, CASH, INVESTMENT AND DEBT MANAGEMENT) Prepare monthly investment reports and quarterly treasury reports to the Finance Committee and City Council.
Reconcile investment transactions, including retrieving fair market values for reporting requirements monthly and performing mark-to-market accounting adjustments at year-end.
Perform daily cash flow reconciliations and manage cash flow balance sheets.
Review and assist departments with controls and procedures for cash receipting and checks.
Audit cash registers, petty cash and change funds and provide findings.
Monitor and track all revenues on a cash and accrual basis.
Operate daily cashiering functions, receipting and processing.
Centralized treasury office, including daily cashiering, receipting, and collecting payments and deposits from other departments.
Coordinate courier pick-up services.
Accounts Receivable, including generating invoices for all departments, managing aging schedules and pursuing collection efforts.
Annually review and adopt the City’s Investment Policy and Procedures and Debt Management Policy
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Debt management transaction support, including Successor Agency RDA- related payments, IBank payments, and any other future bond issuances Prepare journal entries to reflect transfers of cash, including investments, processing payroll or receiving funds electronically.
Closeout cash collections daily, and prepare cash collections packets with backup.
Administer the collection and audit of Transient Occupancy Tax, Tourism Business Improvement District assessments.
Reconcile multiple credit card merchants: Paymentus, Community West Bank (Library), Clearent (Xplor), and OpenEdge (MAGNET)
Data ticket support and processing for monthly transactions related to administrative citations.
BUSINESS LICENSES AND PERMITS
Administer the Business License Program, including customer support, routing, reviewing, printing, mailing, filing, and updating application forms.
Manage the Short-Term Vacation Rental Permit Program and work with online facilitators to implement the City’s ordinance.
Manage the Cannabis Business License Program, including the application process, scheduling, intake, reviewing, routing, conducting site inspections, and ongoing monitoring and compliance.
Review and collect all live scans needed for specialty business licenses for compliance.
Provide final review and approval for all general business licenses and specialty licenses and collect and remit fees associated with tobacco licenses.
Process business license delinquency notices and initiate collection efforts for past due accounts, including notifying Code Compliance Officers.
Coordinate with County Sheriff, County Fire, Code Compliance, and review of other outside sources, including review of ABC License, newly issued state seller permits, and publications for identifying unlicensed businesses.
PURCHASING (Revised for Support Role)
Provide support to General Services for Purchasing and Procurement, as it relates to budget.
Provide backup support as Purchasing Officer when needed.
Work with staff and departments with budget overrides due to the timing of posting appropriations or emergency situations.
Provide assistance with surplus and disposal of assets, including forms and review for compliance.
Recommend mechanism for surplus or disposal and update financial information as it affects the citywide capital assets schedule.
Vendor management: Review and set up all new vendors in the financial system, including updates to vendor information and maintaining federal W9s and state forms.
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Key Accomplishments and Milestones
Over the past fiscal year, the Finance Department can point to several complete and near - complete significant project accomplishments as shown in Table 2 below.
Table 2: Key Accomplishments and Project Milestones, FY 2024-25
PROJECT STATUS
In coordination with the City Manager's Office, pursued tax - exempt financing, including assembling a financing team, bringing back options for City Council consideration, assisted with securing strong credit ratings, and completed two types of bond issuances to support completing critical capital projects.
Completed
Received 20th Government Finance Officer’s Association award for Certificate of Achievement for Excellence in Financial Reporting for its comprehensive annual financial report for the fiscal year ended June 30, 2023.
Completed
Received 4th Government Finance Officer’s Association ’s Distinguished Budget Award for the City’s Two -Year Budget Plan for FY 2023/24 & 2024/25.
Completed
Conduct twelve annual cannabis site inspections. Completed Implement health allowance tiered plan into the financial system and deferred comp match to be effective first pay period in January 2025.
Completed
Transition the Annual DIF Reporting requirements from Public Works to Finance and prepare annual reports on an ongoing basis.
Completed
Complete the FY 2023/24 Audit and Annual Comprehensive
Financial Report and submit the report to the GFOA for award consideration.
Completed
In coordination with City Manager's Office, assist with implementation of Old Town Business License Fee Waiver Program into the Permit Tracking System
Completed
Adoption of a Cost Recovery Policy (Subsidies) and Fee
Establishment Policy. Projected April 2025
Phase 2 – STVR Program—Continued review and analysis of STVR data, working with consultants and Planning &
Environmental Review —Advance Planning to evaluate the
overall STVR program, including impacts on STVRs on
residential neighborhoods and existing hous ing stock. Receive feedback on policy direction and potential STVR ordinance Projected April 2025
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updates from City Council (In coordination with the City Manager's Office and Planning Department).
Implement and enroll the City in the use of their state travel program and update travel policy and procedures to streamline the process.
Projected April 2025
Submit the City's Investment Policy to the California Municipal Treasurer's Association for certification. Projected June 2025 Implement Tyler Content Manager to support Tyler ERP Pro (formerly known as Incode 10), Financial modules, and
employee self-service functions.
Projected June 2025
Conduct cannabis tax audits with contracted auditors. Projected June 2025 Prepare the Two-Year Budget Plan for FY 2025/26 and FY
2026/27 and submit it to the GFOA for award consideration. Projected June 2025 Implement Tyler ERP Pro – AP Automation for electronic
workflow and transition invoice routing away from DocuSign and Teams.
Projected June 2025
Evaluate reserve categories and consider recommending the needs of other categories to limit ongoing financial risk, such as with specific capital replacement, building and facility maintenance, and ongoing funding with Section 115 Trusts.
Projected June 2025
Department Projects for FY 2025-26
Throughout FY 202 5-26, the Finance Department will continue to support the ongoing work efforts as described above in Table 1. However, several new work efforts, projects and programs have been identified, either by the City Council, the City Manager or compliance with the Government Accounting Standards Board (GASB ) and have been included in Table 3 below. These items are proposed as additions to the D epartment’s work program for FY 2025-26. Resources will be prioritized to complete current projects to free up capacity to take on new projects and work efforts as the fiscal year progresses.
Table 3: FY 2025-26 Projects
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PROJECT ESTIMATED
COMPLETION
1 Review and implement defined contribution plan options (Plan 457b) and 401(a) to further diversify investment
options for staff and ensure fiduciary duty is met with HR and the City Manager’s Office.
August 2025
2 Implement new GASB Statement No. 101 on accounting
for Compensated Absences with auditors. The
requirement is effective for fiscal years beginning after June 15, 2024.
October 2025
3 Update the City's General Business License Application process to make it user-friendly, provide a hard copy
application
August 2025
4 Implement Tyler ERP Pro - Contracts Module December 2025 5 Incorporate Development Agreement Fund information
and In-lieu Housing Fund information into Annual DIF
Reporting and Five-Year DIF Reporting, for compliance
and efficiency
December 2025
6 Complete the FY 2024/25 Audit and Annual
Comprehensive Financial Report (ACFR) and submit to
the GFOA for award consideration
December 2025
7 Implement use of electronic workflow for payroll and HR related forms onto Tyler ERP Pro December 2025
8 Centralize finance forms and policies for department use and develop guidance and training programs on the use of forms and policies
December 2025
9 Develop a Retired Annuitant Employment Policy in
coordination with HR October 2025
10 Transfer additional years of historical financial, vendor, and payroll data from Incode 8 into Tyler ERP Pro, which includes data from FY 01/02 to FY 13/14.
June 2026
11 Implement and transition the Accounts Receivable process and workflow to Tyler ERP Pro - Accounts Receivable
Module
March 2026
12 Implement Tyler ERP Pro – Grants Management Module. March 2026 20 18
13 In coordination with Public Works, assist with pursuing updating the City’s streetlighting assessment rates. TBD 14 In coordination with Public Works, assist with pursuing a comprehensive study for stormwater funding, to address
unfunded mandates. Including evaluating all funding
options, determining the cost of services, potential
revenue and rates, methodology, and funding
mechanisms.
TBD
15 Develop and implement Transient Occupancy Tax (TOT)
Audit Policy and Procedures and procure contracts for
TOT auditing services, including pursuing back tax
collection on STVR operators.
February 2026
16 FY 26/27 Mid-Cycle Budget Update June 2026
Long-Range Projects Contingent on Staff Capacity
The following prospective projects in Table 4 below represent long-range work efforts that exceed the division’s expected FTE capacity for Fiscal Year 2025-26. However, in the event staff capacity becomes available, then new projects will be taken up in the priority shown below.
Table 4: Long-Range Projects Contingent on Staff Capacity
PROJECT ESTIMATED
COMPLETION
17 Evaluate and implement citywide budget software for
efficiencies and formalize the citywide budget policy, that includes the strategic plan, annual work programs, and
operating and capital budgets to streamline the process TBD
18 Issue an RFP for an updated Full Cost Allocation Plan and Comprehensive User Fee Study TBD
19 Implement requirements of the Financial Data
Transparency Act TBD
20 Evaluate the use of AI and robotic process automation (RPA) to assist with financial transaction processing and supplement staff as a tool to streamline operations
TBD
21 Assist with tracking performance and funding plans
associated with major plan documents TBD
21 19
22 Evaluate and implement potential update to the Short- Term Vacation Rental License Online Application Process and potential future updates to the related ordinance.
TBD
23 Assist with potential negotiations for the upcoming
expirations in FY 2026-27 of the multi-year agreements
with the County Sheriff’s Department for law enforcement and County Animal Services’ Department.
TBD
24 Phase 3 – STVR Program – Depending on the outcomes
of Phase 2 and City Council direction, the City Manager’s Office, the City Attorney’s Office, the PER Department, and the Finance Department will propose updates to the
STVR-related ordinances and program changes for City-
Council consideration, approval, and implementation.
TBD
25 Analyze the City business license and specialty license permitting process to identify and implement opportunities to improve efficiency and ensure appropriate staffing
levels in conjunction with the City Manager's Office
TBD
26 Evaluate and update credit card merchant accounts to streamline payment processing TBD
27 Develop a business continuity plan specific to finance operations. TBD
28 Assist with future implementation of action items from the Economic Development Strategic Plan (to be further
developed once known).
TBD
29 Evaluate potential revenue enhancement options in
coordination with City Manager's Office. TBD
30 Implement the use of position control in Tyler ERP Pro. TBD 31 Update Accounting Policy and Procedures as they relate to Federal Funds in conformance with Uniform Guidance
and conduct internal trainings
TBD
22 ATTACHMENT 2
Fiscal Year 2025-26 Annual Work Program – Finance Department Presentation 23 FY 2025-26 Annual
Work Program
Finance Department
City Council Meeting
March 18, 2025
Presentation by:
Luke Rioux, Finance Director
24 Purpose
Update Council on existing work commitments and
progr
ess
Review staffing and workload
Propose and consider potential new work efforts
Discuss and set Finance Department work priorities
for
Fiscal Year 2025-26
March 18, 2025, City Council Meeting 2
25 Finance Dept. Overview
12.00 FTE
Areas of Responsibility – Core Functions
Finance Administration
Accounting Services (Financial Reporting, GL Management, Accounts Payable) Payroll
Budget Management
Treasury (Revenue and tax, cash collections, investment and debt) Business Licenses and Permits (Specialty licenses, Cannabis, Short-Term V
acation Rentals)
Purchasing (Support role, vendor management)
March 18, 2025, City Council Meeting 3
26 Finance Department Structure
Contract Support:
Property Tax, Sales Tax and Transaction and Use Tax Analysis and Audit Services
(HdL)
Cannabis Consulting Services (including monitoring and compliance and cannabis
tax audits) (HdL)
Actuary Services – Retiree Health (Foster & Foster formerly Bartel) Audit and Financial Reporting (Independent Auditors – Rogers, Anderson, Malody,
and Scott LLP)
Investment Services (Various Broker/Dealers and PARS for Section 115 Trusts
for Pensions and Retiree Health)
Municipal Financial Advisory Services (including Continuing Disclosure Services
for RDA debt – Urban Futures)
STVR Monitoring and Compliance (Pending)
Transient Occupancy Tax Audit (Pending)
Banking Services (Community West Bank)
March
18, 2025, City Council Meeting 4
Finance
Director
Accounting
Manager
Accounting
Supervisor
Accounting
Specialist
(Payroll)
Accounting
Specialist (AR)
Accounting
Specialist (AP)
Accounting
Specialist
Accountant
Accountant
Budget
Analyst
Management
Assistant
Senior Office
Specialist
27 FY 2024-25 Department Highlights
Pursed tax-exempt
financing and completed
two types of bond
issuance
Conducted 12 cannabis
site inspections
Implement health
allowance tiered plan
into the financial system
and deferred comp
match
Transition the Annual DIF
Reporting requirements from
Public Works to Finance and
prepare annual reports on an
ongoing basis
Complete the FY 2023/24
Audit and Annual
Comprehensive Financial
Report and submit the
report to the GFOA for award
consideration
Assisted with
implementation of Old
Town Business License
Fee Waiver Program into
the Permit Tracking
System
Continued review and
analysis of STVR data,
working with
consultants and
Planning &
Environmental Review
Prepare the Two-Year
Budget Plan for FY
2025/26 and FY 2026/27
and submit it to the
GFOA for award
consideration
March 18, 2025, City Council Meeting 5
• Received 20 th Government Finance Officer’s Association award for Certificate of Achievement for Excellence in Financial Reporting for its comprehensive annual financial report for the fiscal year ended June 30, 2023. • Received 4 th Government Finance Officer’s Association’s Distinguished Budget Award for the City’s Two-Year Budget Plan for FY 2023/24 & 2024/25. 28 FY 2025-26 Projects
March 18, 2025, City Council Meeting 6
1. Review and implement defined contribution plan options (Plan 457b) and 401(a) to further diversify investment options for staff and ensure fiduciary duty is met with HR and the City Manager’s Office.
2. Implement new GASB Statement No. 101 on accounting for Compensated Absences with auditors. The requirement is effective for fiscal years beginning after June 15, 2024.
3. Update the City's General Business License Application process to make it user-friendly, provide a hard copy application
4. Implement Tyler ERP Pro - Contracts Module
5. Incorporate Development Agreement Fund information and In-lieu Housing Fund information into Annual DIF Reporting and Five-Year DIF Reporting, for compliance and efficiency
6. Complete the FY 2024/25 Audit and Annual Comprehensive Financial Report (ACFR) and submit to the GFOA for award consideration
7. Implement use of electronic workflow for payroll and HR related forms onto Tyler ERP Pro
8. Centralize finance forms and policies for department use and develop guidance and training programs on the use of forms and policies 29 FY 2025-26 Projects
March 18, 2025, City Council Meeting 7
9. Develop a Retired Annuitant Employment Policy in coordination with HR
10. Transfer additional years of historical financial, vendor, and payroll data from Incode 8 into Tyler ERP Pro, which includes data from FY 01/02 to FY 13/14.
11. Implement and transition the Accounts Receivable process and workflow to Tyler ERP Pro - Accounts Receivable Module
12. Implement Tyler ERP Pro – Grants Management Module.
13. In coordination with Public Works, assist with pursuing updating the City’s streetlighting assessment rates.
14. In coordination with Public Works, assist with pursuing a comprehensive study for stormwater funding, to address unfunded mandates.
Including evaluating all funding options, determining the cost of services, potential revenue and rates, methodology, and funding mechanisms.
15. Develop and implement Transient Occupancy Tax (TOT) Audit Policy and Procedures and procure contracts for TOT auditing services, including pursuing back tax collection on STVR operators.
16. FY 26/27 Mid-Cycle Budget Update
30 Long-Range Projects (Partial list)
17.Evaluate and implement citywide budget software for efficiencies and formalize the citywide budget policy, that includes the strategic plan, annual work programs, and operating and capital budgets to streamline the process
18.Issue an RFP for an updated Full Cost Allocation Plan and Comprehensive User Fee Study
19.Implement requirements of the Financial Data Transparency Act
20.Evaluate the use of AI and robotic process automation (RPA) to assist with financial transaction processing and supplement staff as a tool to streamline
21.Assist with tracking performance and funding plans associated with major plan documents
22.Evaluate and implement potential update to the Short-Term Vacation Rental License Online Application Process and potential future updates to the related ordinance.
23.Assist with potential negotiations for the upcoming expirations in FY 2026-27 of the multi-year agreements with the County Sheriff’s Department for law enforcement and County Animal Services’ Department.
24.Phase 3 – STVR Program – Depending on the outcomes of Phase 2 and City Council direction, the City Manager’s Office, the City Attorney’s Office, the PER Department, and the Finance Department will propose updates to the STVR-related ordinances and program changes for City-Council consideration, approval, and implementation.
March 18, 2025, City Council Meeting 8
31 9
Questions?
32