Fiscal Note

Each piece of legislation that appropriates funds, creates position authority, or will create a financial impact through policy direction or otherwise, requires a fiscal note. The fiscal note should be drafted by department staff and should include all relevant financial information. After preparation by departmental staff, the Department of Finance will review and make necessary revisions before transmittal to Council.

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Finance	Diane Clausen 4-8151	Diane Clausen 4-8151

Legislation Title:

AN ORDINANCE reorganizing certain financial and administrative portions of the executive branch of City government; creating a Department of Executive Administration; establishing the duties of the new department; reassigning certain functions currently performed by the Department of Finance; transferring and reclassifying certain positions, some of which are becoming exempt; making provisions for transition, including provisions relating to appropriations in the 2002 adopted budget; repealing or amending obsolete provisions; and amending, repealing, and adding numerous sections throughout the Seattle Municipal Code; all by a two-thirds vote of the City Council.

Summary of the Legislation:

This legislation reorganizes the Department of Finance into two separate agencies: one to focus closely on financial management and the other to oversee the more operational and administrative tasks that are performed by the existing Department of Finance. The new Department of Finance created in this legislation will be responsible for budgeting, debt management, financial policies, and overall financial controls, and will have policy oversight over City taxes, investments, accounting, and related activities. The Department of Executive Administration created in this legislation will be responsible for Citywide accounting, payroll, licensing, revenue collection and processing, animal services, weights and measures, treasury activities, purchasing, construction and consultant contracting, risk management, and the SUMMIT and HRIS data systems.

The proposed reorganization will be accomplished without additional costs and without a net increase in FTEs.

Appropriations (in $1,000’s):

Department/Fund Name and Number	Line of Business/ Program	2002 Appropriation	2003 Anticipated Appropriation
		0	0
TOTAL		0	0

Notes: There are no changes to appropriations.

Anticipated Revenue/Reimbursement (in $1,000’s):

Department/Fund Name and Number	Revenue Source	2002 Revenue	2003 Revenue
		0	0
TOTAL		0	0

Notes: There are no changes to revenues.

Total FTE Created Through Legislation or Estimated FTE Impacts (TES, etc.):

Department/Fund Name and Number	Position Title	2002 FTE	2003 FTE
		0	0
TOTAL		0	0

Do positions sunset in the future? (If yes, identify sunset date):

Background (Include brief description which states the purpose and context of legislation and include record of previous legislation and funding history, if applicable):

The reorganization of the Department of Finance proposed in this legislation will strengthen the focus of the City’s financial management activities.

The financial cost of not implementing the legislation (Estimate the costs to the City of not implementing the legislation, including estimated costs to maintain or expand an existing facility or the cost avoidance due to replacement of an existing facility, potential conflicts with regulatory requirements, or other potential costs if the legislation is not implemented):

Possible alternatives to the legislation which could achieve the same or similar objectives (Include any potential alternatives to the proposed legislation, including using an existing facility to fulfill the uses envisioned by the proposed project, adding components to or subtracting components from the total proposed project, contracting with an outside organization to provide the services the proposed project would fill, or other alternatives):

Other Issues (including long-term implications of the legislation):