Memorandum

City of Lawrence

Finance Department

TO:	Dave Corliss, Interim City Manager
FROM:	Ed Mullins, Finance Director
CC:
Date:	April 9, 2007
RE:	2008 Budget

The 2008 budget request for the Finance Department has been completed.  The department provides accounting, payroll, accounts payable, purchasing, investing, and utility billing services.  Through utility billing, the Finance Department is often the only contact citizens have with the City of Lawrence.  It is important that a good relationship be established by providing a high quality of service.  The department provides monthly billing services to over 31,000 utility customers, as well as miscellaneous billing for other city departments.  Staffing to read the water meters and maintain residential water meters is part of the department.   

          The department is advertising for an Assistant Finance Director.  The position allows us to better manage the activities of the utility billing division including collecting on delinquent accounts and allowing activities to continue in the absence of key employees.   The Finance Department has requested the replacement of our water meter radio transmitters with another product.    The existing units are failing at a higher than expected rate.  The new software will allow meters to be displayed on a map.  An integrated voice response system is being evaluated to respond to calls made to the utility billing office personnel.

          The 2008 General Fund base budget continues the present level of services.  The General Fund includes training for the Director, Accountant, and Management Analyst and memberships to finance organizations.  The replacement of six computers used by the department is included in the budget.

          The 2008 Water and Sewer Fund budget includes funds for vehicle replacement.  Printing and mailing of utility bills by AB Data and increased fuel expenses for the operation of the field service vehicles are included.  Funds to continue the installation of radio transmit meters are also budgeted.  A 5% increase in the transfer to the General Fund is provided in the request.

Program improvement issues for the Finance Department in 2008 are as follows:.

1) Work Flow - The accounts payable process is paper intensive and time consuming.  The process can be improved and automated through the purchase of additional modules to our imaging software.  By adding the work flow function, the amount of time spent by all departments in processing payments can be reduced. 

          Your approval of the program improvement packages and base budget is requested.  The Finance Department is often the one and only contact citizens have with city staff.  It is important that the interaction prove satisfactory to the customer.  If you have any questions concerning items in the budget request, please contact me.