REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Establishing the New Classification of Budget Manager and Amending the City’s Salary Resolution to Update the Schedule of Pay to Add the Budget Manager Classification and Increase the Pay Range of the Assistant Director of Finance Classification
Report
BACKGROUND
The City is organized into eleven departments. The size of each department varies based on operational need, but each is managed by a Director. Departments with sufficient need also have an Assistant Director position to support the Director in administering the operations, programs, and projects of the department. Three departments currently have Assistant Director positions: Public Works, Community Development, and Finance.
The Department of Finance also has a Budget Division, currently staffed by three budget analysts and managed by the Assistant Director. The division is responsible for the development and production of the City-wide annual budget, supports budget monitoring across the City, and performs analytical work related to delivery of services by City departments. The task of managing the Budget Division and performing higher level analytical work related to the budget falls to the Assistant Director. In order to provide a higher level of analytical support to the Director and the Assistant Director of Finance regarding the budget, staff is proposing to create a new classification of Budget Manager.
EXISTING POLICY
Council Policy 7.3.1 Legislative Management - Goals and Policies, Goal 7.3D: Maintain a quality work force, consistent with state and federal laws, City Charter, and adopted policies in order to assure that City services are provided in an effective, efficient, and high quality manner.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
DISCUSSION
The Assistant Director of Finance provides several key functions in support of the department. The position participates in developing goals and objectives of the department, monitoring fiscal operations, analyzing and recommending strategies for improvements, and assisting the Director of Finance in the day-to-day operational management of the department. Additionally, the position manages large and complex projects as assigned by the Director, for example, the implementation of a new Enterprise Resource Planning (ERP) System. The position also provides high-level analysis and recommendations during labor negotiations, and therefore is classified as Confidential.
The Assistant Directors of Public Works and Community Development currently have an annual salary range up to $182,946, while the Assistant Director of Finance has an annual salary range up to $173,601. The recommended change would increase the annual salary range of the Assistant Director of Finance to make it consistent with the other Assistant Director classifications. The Assistant Director of Finance position is currently vacant and aligning the salary range with the other positions will provide for a competitive pay range to attract a qualified candidate.
In addition, the Budget Manager will be responsible for managing the Budget Division in the Department of Finance. The Budget Manager will lead the development of the city-wide budget, manage the City’s new budget system, lead budget monitoring, interact regularly with other departments, and provide a higher level of analytical support to the Assistant Director of Finance and the Director of Finance.
FISCAL IMPACT
The fiscal impact of aligning the compensation of the Assistant Director of Finance with other Assistant Directors is approximately $12,000 annually or approximately $305,000 over twenty years. The cost for the conversion of the Budget Analyst I/II to Budget Manager is approximately $30,000 per year and was included in the FY 2018/19 Budget. Funding for the Department of Finance is provided through both the General Fund and the city’s enterprise funds. The cost of the adjustment for the Assistant Director can be absorbed in the current budget for the Department of Finance and adjusted in the FY 2019/20 Budget.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
ALTERNATIVES
1. Adopt a Resolution Establishing the New Classification of Budget Manager and Amending the City’s Salary Resolution to Update the Schedule of Pay to Add the Budget Manager Classification and Increase the Pay Range of the Assistant Director of Finance Classification.
2. Do Not Adopt a Resolution Establishing the New Classification of Budget Manager and Amending the City’s Salary Resolution to Update the Schedule of Pay to Add the Budget Manager Classification and Increase the Pay Range of the Assistant Director of Finance Classification.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Adopt a Resolution Establishing the New Classification of Budget Manager and Amending the City’s Salary Resolution to Update the Schedule of Pay to Add the Budget Manager Classification and Increase the Pay Range of the Assistant Director of Finance Classification
Staff
Prepared by: Timothy J. Kirby, Director of Finance
Reviewed by: Tina Murphy, Director of Human Resources
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Resolution Establishing the New Classification of Budget Manager and Amending the City’s Salary Resolution to Update the Schedule of Pay to Add the Budget Manager Classification and Increase the Pay Range of the Assistant Director of Finance Classification