Form revised February 4, 2010
FISCAL NOTE FOR NON-CAPITAL PROJECTS
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Department: |
Contact Person/Phone: |
DOF Analyst/Phone: |
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Department of Finance, Department of Executive Administration, Fleets and Facilities Department |
Jan Oscherwitz – 4-8510 Lisa Peyer -4-0503 |
Greg Shiring 6-4085 |
Legislation Title:
· Summary of the Legislation:
This legislation creates a new Department of Finance and Administrative Services (FAS), which includes the former Department of Executive Administration, Fleets and Facilities Department, economic forecasting and debt management functions from the former Department of Finance, and the Customer Service Bureau unit that currently resides in the Department of Neighborhoods. Additionally, the legislation creates a new City Budget Office (CBO) within the Executive Department that is responsible for conducting long-term financial planning and managing the City’s expenditures by developing and monitoring an annual budget to support core City services and the Mayor’s and Council’s priorities. The legislation also transfers the Director of Finance position from DOF to FAS, with the appointment of the position remaining subject to confirmation by the City Council, and transfers responsibility for Public Development Authority oversight from DOF to the Office of Intergovernmental Relations. Upon its passage, the Bill will abolish the Department of Finance, Fleets and Facilities Department, and Department of Executive Administration, and update the Seattle Municipal Code, the 2010 position list and the 2010 Adopted Budget to reflect these changes. Finally the proposed legislation updates and amends the Seattle Municipal Code to reflect current practice and repeal obsolete references.
Background: The proposed reorganization of City departments will result in more centralized and focused budget planning and oversight, and a closer integration of financial policies with financial administration and management.
Under this proposal, the new FAS will incorporate functions from the former Fleets and Facilities Department, Department of Executive Administration, and the Customer Service Bureau, as well as the revenue forecasting, debt management, and tax policy functions that were previously performed by the Department of Finance. The creation of FAS will integrate financial policies with financial management, allowing for, among other things, greater efficiencies, better integration of the City’s financial and accounting procedures and systems, and efficiencies in the provision of customer service.
The new CBO will provide a strong emphasis on long-term financial planning, and will prepare and enforce the City’s budget; and develop revenue and debt strategies to support the budget in a more centralized manner. The creation of CBO will improve financial reporting and transparency of the City’s budget documents, and integrate expenditure forecasting with long-term revenues and debt policies to create balanced and sustainable budgets.
The proposed reorganization will be accomplished without additional costs and without a net increase in FTEs.
· Please check one of the following:
____ This legislation does not have any financial implications.
__√__ This legislation has financial implications
Appropriations:
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Fund Name and Number |
Department |
Budget Control Level* |
2010 Appropriation |
2011 Anticipated Appropriation |
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See below |
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TOTAL |
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Notes: Although this legislation amends Attachment A of Ordinance 123177 (the Budget Adoption Ordinance for 2010) by changing department names, Budget Control Level (BCL) names, and BCL purpose statements as reflected in Exhibit 1 attached to the Ordinance, the legislation is budget neutral. FAS will have responsibility for the BCLs of the former Department of Executive Administration and the former Fleets and Facilities Department. The Executive (through CBO) and FAS will share responsibility for the budget authority associated with the BCL of the former DOF. FAS will have authority over the appropriations associated with the positions and debt management function being transferred from DOF to FAS. CBO will have responsibility for the remainder of the DOF BCL appropriations. The departments will manage this authority through an interdepartmental agreement. Similarly, FAS will have authority over the appropriations associated with the positions and functions of the Customer Service Bureau transferred from DON to FAS and this authority will likewise be managed through an interdepartmental agreement. The 2011 Proposed Budget will align budget control levels with the appropriate departments.
Anticipated Revenue/Reimbursement: Resulting From This Legislation:
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Fund Name and Number |
Department |
Revenue Source |
2010 Revenue |
2011 Revenue |
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TOTAL |
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Notes: Not applicable.
Total Regular Positions Created, Modified, Or Abrogated Through This Legislation, Including FTE Impact:
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Position Title and Department |
Position # for Existing Positions |
Fund Name & # |
PT/FT |
2010 Positions |
2010 FTE |
2011 Positions* |
2011 FTE* |
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Strategic Advisor 3, Exempt / Dept of Executive Administration |
00017090 |
General Subfund / 00100 |
Current - PT ; Proposed- FT |
No net change |
+0.50 FTE |
No net change |
+0.50 FTE |
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TOTAL |
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0 |
0.50 |
0 |
0.50 |
Notes: There are no new positions associated with this legislation. A total of 7 positions (6.5 FTE) (1 Executive 3, 1 Investments/ Debt Director, 1Strategic Advisor 3, Exempt, 3 Strategic Advisor 2, Exempt, and 1 Strategic Advisor 2, CSPI&P) will transfer from DOF to FAS. The remaining 30 positions (1 Exec 4, 1 Exec 2, 5 Strategic Advisor 3, Exempt, 19 Strategic Advisor 2, Exempt, 1 Strategic Advisor 2, CSPI&P, 1 Executive Assistant, I Administrative Staff Analyst, and 1 Admin Spec III), in DOF will transfer to CBO. In addition, a total of 7 positions (1 Admin Spec I-BU, 1Admin Spec II-BU, 3 Complaint Investigators, 1Admin Staff Analyst, and 1 Executive 1) will transfer from DON to FAS.
One existing position at DEA, described in the table above, includes an FTE Status Change from 0.50 FTE (Part Time) to 1.00 FTE (Full Time).
· Do positions sunset in the future? No.
· Spending/Cash Flow: Not Applicable.
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Fund Name & # |
Department |
Budget Control Level* |
2010 Expenditures |
2011 Anticipated Expenditures |
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TOTAL |
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Notes:
· What is the financial cost of not implementing the legislation? This legislation allows the City to reorganize certain functions without having to create new position or budget authority. The reorganization allows for mid-year 2010 cuts. Detailed information will be presented in June.
· Does this legislation affect any departments besides the originating department? This legislation updates various obsolete sections of the Seattle Municipal Code. Staff from SPU, SDOT, Seattle City Light, DPD, OIR, and DON have reviewed sections of the code that affect their departments or offices.
· What are the possible alternatives to the legislation that could achieve the same or similar objectives? An alternative to this legislation is to maintain the status quo. This will not allow for efficiencies and improved integration of functions anticipated from the merger of these departments.
· Is the legislation subject to public hearing requirements: No
· Other Issues (including long-term implications of the legislation):
· List attachments to the fiscal note below: