For City Council Meeting April 9, 2024
TO: Honorable Mayor and City Council
FROM: David N. Carmany, City Manager
AUTHOR: Tanya Williams, Assistant City Manager
Title
Consideration of Update Regarding the City of Rialto Finance Department.
RECOMMENDATION
Staff recommends that the City Council:
1) Approve the proposed annual budget calendar for the 2024-2025 fiscal year, and
2) Approve the Fiscal Year 2024-25 budget community goals.
Body
BACKGROUND
The Finance Department of the City of Rialto plays a pivotal role in managing the city's financial resources and supporting the delivery of essential services to our community. The department's major functions encompass a wide range of responsibilities, including budgeting, accounting, financial reporting, tax administration, debt management, investment management, grants and funding management, financial planning and analysis, procurement, compliance and auditing, customer service, technology and systems management, policy development, and interdepartmental coordination. Given the significance of these functions, this report is intended to provide an update to the City Council on the operation of the Finance Department and its activities.
Update on Finance Department Operations:
The Finance Department has been diligently executing its responsibilities across the various functions outlined above. From budget preparation to financial reporting and compliance activities, the department has been proactive in ensuring fiscal responsibility and transparency in all financial matters. The Finance Department will continue to work closely with the City Council, all city departments, and external stakeholders to effectively manage the city's financial resources and support the achievement of our strategic objectives.
ANALYSIS/DISCUSSION
One of the key priorities for the finance department is the adoption of the Fiscal Year 2024-2025 budget. Approval of a budget calendar will establish a structured and transparent process for the development, review, adoption, and implementation of the city's budget. This process will ensure that the budget reflects the priorities and needs of our community while maintaining fiscal responsibility. Approval of budget community goals will serve as a roadmap for guiding the city's financial decisions and activities throughout the year. By setting clear objectives, the City Council can ensure alignment with the community's needs and strategic priorities, thereby fostering progress and prosperity for the City of Rialto.
To continue the essential operations of the City of Rialto’s finance operations, at the next City Council meeting staff will bring forward a proposed agreement for a retired annuitant to serve in an interim Finance Director capacity. Key functions such as the annual audit, Fiscal 2023 year-end closing, the upcoming Fiscal Year 2025 budget process, and the implementation of the Tyler ERP system are crucial for the city's financial health and efficiency. Ensuring these operations remain on track is essential for maintaining accountability, financial transparency, and effective resource management. Having a person serve as the interim Finance Director while the city conducts an open and competitive recruitment will ensure these important priorities to move forward.
The City also intends to bring on additional resources from outside CPA firms to expand the available resources to support the critical functions of the finance department. This is a strategic move by the City of Rialto to bolster its financial goals and operations. By bringing on additional support, the city manager's office demonstrates a commitment to addressing any potential gaps in expertise or workload capacity within the finance department.
This approach can have several benefits:
1. Increased Efficiency: Additional resources can help streamline financial processes, reducing bottlenecks and improving overall efficiency in the finance department.
2. Expertise Enhancement: Depending on the specific roles and responsibilities of the additional resources, the city can bring in specialized expertise to address complex financial challenges or projects. This also enhances the capacity, training and ability of the existing staff.
3. Workload Management: With more support, the finance department can better manage heavy workloads, particularly during critical periods such as budgeting cycles or audits.
4. Risk Mitigation: By ensuring that the finance department has adequate resources, the city can mitigate the risk of errors, oversights, or delays in financial operations.
It's important for the city manager's office to carefully assess the specific needs of the finance department and align the additional resources accordingly. This may involve hiring temporary staff, contracting with external consultants, or redistributing existing resources within the organization.
Communicating the rationale behind this decision to stakeholders, including the City Council and the public, can help build support and transparency. Highlighting how these additional resources will contribute to the city's overall financial health and stability is crucial for garnering buy-in from all parties involved.
Overall, this proactive approach to resource allocation underscores the city's commitment to sound financial management and reinforces its ability to achieve its financial goals effectively.
ENVIRONMENTAL IMPACT
The proposed action does not meet the definition of a project as defined by Section 15378 California Environmental Quality Act (CEQA). A “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment and excludes organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
The request is consistent with Guiding Principle 3A of the Rialto General Plan: our city government will lead by example, and will operate in an open, transparent, and responsive manner that will meet the needs of the citizens and is a good place to do business.
LEGAL REVIEW
The City Attorney's Office has reviewed the staff report.
FINANCIAL IMPACT
Operating Budget Impact
There is no impact on the operating budget for the receive and file of this staff report.
Capital Improvement Budget Impact
There is no impact on the capital budget for the receive and file of this staff report.