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HomeMy WebLinkAboutAgenda Statement 1979/11/06 Item 19 CITY OF CHULA VISTA COUNCIL AGENDA STATEMENT Item No. 19 a'" -- For meeting of 11-6-79 ITEM TITLE Resolution?J>~' Approving an additional accounting position in the Finance Department and Appropriating Funds SUBMITTE~Director of Finance ITEM EXPLANATION (4/5TH'S VOTE REQUIRED YES~ NO____) At the Redevelopment Agency meeting of October 4,1979, Mr. Wayne Carroll, City Auditor representing Carroll and Pendleton, Associates, Certified Public Accountants, presented the audit report for the fiscal year ending June 30, 1979. In his remarks to the Agency, he expressed his concern for an additional professional accountant. He stated that while the City budget has increased from 8 million dollars in 1970 to 20 million dollars in 1979, (2 1/2 times) there has been no additional staffing in the Finance Depart- ment. , The Redevelopment Agency was created in October, 1972, with the Director of Finance appointed as Treasurer. Currently during the 1979-80 fiscal year, the Redevelopment Agency is providing technical services for two comprehensive project areas; namely, the Bayfront/Town Centre and Town Centre II areas. In connection with the combined Bayfront/Town Centre project and to illustrate the substantial increased activity, the following bond sales have been completed or will be shortly. Residential Mortgage Revenue Bonds $ 7,150,000 $11,350,000 $26,300,000 Sold in October, 1979 Sold in September, 1979 Sold in October, 1979 Sold in July, 1979 Accomplished March, 1979 Tax Allocation Bonds Construction Loan Notes County/Agency Lease Revenue Bonds $51 ,OOO~OOO Agreement_ Other Resolution1:.. $ 3,330,000 EXHIBITS Ordinance_ Defeased Bayfront Bonds Plat - Notification List_ ENVIRONMENTAL DOCUMENT: Attached___ Submitted on FINANCIAL IMPACT Ap~ropr1ate $10,990 from. the unappropriated balance of the General Fund WhlCh wlll be totally relmbursed from the Agency, SCOOT, and the Community Development Block Grant Program. STAFF RECOMMENDATION Approval. BOARD/COMMISSION RECOMMENDATION N/A COUNCIL ACTION ~~'lC\ (' .~.--: i i f :_~' r:1 i ~1 ," Dc,t::-! \..-,.....,J //_'rJ9 -----_.~/-. ._.._-~.._._.~-- 1 Form No. F-229 12/73 ------ CERTIFICATE OF CITY/DIRECTOR OF FINANCE Certification of Unappropriated Balance I HEREBY CERTIFY that the money required for the appropriation of funds for the purpose set forth in the attached resolution is available in the Treasury, or is anticipated to come into the Treasury, and is otherwise unappropriated. Amount $ 10,990.00 Fund General Purpose Additional Accounting Position in Finance Department Bidder N/A 00 0420 5101 00 0420 5141 00 0420 5142 $9,670.00 1,040.00 280.00 $10,990.00 d ///~ /~~<0;0-z-~ Director of Finance The City of Chula Vista Date 11/2/79 By Certification of Unencumbered Balance I HEREBY CERTIFY that the indebtedness and obligation to be incurred by the contract or agreement authorized by the attached resolution can be incurred without the violation of any of the provisions of the Charter of the City of Chula Vista, or the Constitution or the laws of the State of California, that sufficient monies have been appropriated for the purpose of said contract, that sufficient monies to meet the obligations of the contract are actually in the Treasury, or are anticipated to come into the Treasury to the credit of the appropriation from which the same are to be drawn, and that said monies now actually in the Treasury, together with the monies anticipated to come into the Treasury, to the credit of said appropriation are otherwise unencumbered. Amount Not to Exceed $ Director of Finance The City of Chula Vista Date By Fund Dept./Activity Purpose Bidder q~-;~( Certificate No. 35 Page Two I tem No. 19 November 6. 1979 Although the United California Bank and the Crocker National Bank are named as Trustees, all the accounting records of the Redevelopment Agency are maintained in the Finance Department and all the accounting activity is centralized there. To illustrate the additional accounting work load, each bond issue noted requires the establishment of separate revenue funds, interest and princioal accounts, debt service reserve funds, operating or project funds, mortgage reserve funds, and may require asset accumulation funds. This is all in addition to the numerous funds and accounts already established for the Agency. There are a number of special financial reports required for the State Controller's Office, the County Auditor and Controller's Office and various departments of the Federal government. In my ooinion, the increased work load to handle this new activity will require a minimum of 10 man hours per week in the department. Another area of new responsibility is the establishment of the South Coast Organization Operating Transit (SCOOT). This was accomplished with a joint- powers agreement (JPA) with the County of San Diego. The agreement was entered into to save the City a transit subsidy of approximately $100,000 during the 1979-80 fiscal year. We already have invested over 40 man hours in establishing the necessary new trust fund accounts and making the transitional adjustments. The Director of Finance is the appointed Treasurer of SCOOT and will be responsible for the receipt and disbursement of all SCOOT funds. In addition, financial reports and statements must be prepared for the new Board of Directors. It is estimated that five man hours per week will be required to adequately handle the new accounting responsibilities. Federal and State grants continue to increase and finance a substantial portion of our annual budget. The new compliance requirements included in all grants now are very technical and time consuming. Compliance requirements are in addition to our normal accounting work load and financial reporting. This past year fiscal coordination, including financial reporting, spanned eight different grants totaling nearly 2.5 million dollars. This will require 15 man hours per week to make sure we are satisfying all of the numerous grant requirements. The Federal Revenue Sharing program also has specific new public participation requirements. They are namely, two public hearings, publication of notices. and preparing additional financial information. Also we are now involved in time consuming exit interviews with not only Federal Revenue Sharing audits, but all Federal and State Grant audits. The man hours involved here represent on the average at least two hours per week. Since July 1. 1979, the Finance Department has assumed responsibility for the processing of all unsigned parking citations. The City Council approved a half-time clerk to provide clerical assistance for this new orogram. In addition to this, professional accounting time is required to provide supervision and internal accounting controls. We need additional accounting assistance to computerize the whole program to improve the efficiency and reduce clerical time that has already exceeded 20 hours per week. This will require at least two man hours per week. q~7~ Page Three Item No. 19 November 6, 1979 A continuing concern shared by the Finance Director and the City Auditor is the need for more internal auditing. Cash audits~ payroll audits, and fixed asset audits need to be conducted on a regular basis for all departments. This is not possible with our present staffing. Another concern is the need to make periodic audits of our Golf and Tennis Professionals and restaurant operation. Depending on the scope and complexity of the various audits mentioned, this will require at least an average eight man hours per week. Although I have not covered all the areas that could be mentioned in this brief report, the additional man hours required to keep up with the level of accounting responsibility is there. It is my recommendation that we employ a junior accountant to train and assist in the Finance Department as soon as possible. ~~~9