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Department of Administration & Finance
Divisions of Finance, Human Resources, Safety & Risk, Central Services & Purchasing
2018 Annual Report
Overarching Message:
The Department of Administration & Finance is committed to supporting the operations of the City by:
• Providing accurate, timely and complete financial information to City departments and to the public,
enabling high-quality decision-making and promoting accountability and transparency
• Encouraging the alignment of budgetary resource allocation with the City's strategic priorities
• Ensuring that the City's workforce is able to serve the residents of South Bend in an effective,
efficient, and safe manner.
• Providing high-quality internal services to support the City's fleet management, building
management, and purchasing operations Filed in Clerk's Office
Top Achievements during 2018: FEB 01 2019
Be a great employer with great employees KAREEMAH FOWLER
CITY CLERK,SOUTH BEN1D,1N--
o Human Resources
o Employees pay no more for health insurance in 2019 than they did in 2018 due to sound fiscal
management of the health care fund, while incomes for employees increased.
o Completed expansion of employee orientation program, including implementation of a City-wide
harassment training course to be taken by all City employees in accordance with Council's ordinance
passed in July 2018.
o Implemented program to provide an alternative PERF retirement option for new hires, which
substantially reduces the time an employee becomes vested.
o Human Resources works to develop innovative solutions to recruiting, including using an abbreviated
and simplified job application for specific positions that reduces the barriers for qualified individuals
seeking employment with the City.
o The City's Employee Health &Wellness Center opened for employee use in January 2016. Employee
satisfaction with the Center's clinicians and services is extremely positive. Even after the third year of
operation, the City's health care claims data shows that number of primary care office visits continues to
trend downward as employees make use of the Clinic. In addition, the City spent close to 6% less on
generic prescriptions as the Clinic works to redirect these prescriptions through the Clinic.
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Department of Administration & Finance
Divisions of Finance, Human Resources, Safety & Risk, Central Services & Purchasing
2018 Annual Report
o Thirty-eight employees received 6 weeks of 100% paid leave to bond with their new family members
during the first year of the City's parental leave policy.
o The City implements two new policies to make it an even greater employer for great employees. In
2019, employees will have up to 8 hours of paid time off to volunteer, and employees will be able to
donate vacation to fellow employees who are on unpaid leave due to extreme health or personal
circumstances.
o Human Resources partnered with Diversity & Inclusion to evaluate pay equity in the City, developing a
tool that can be used in the new Human Resources Information System to evaluate equity on a regular
basis.
o Human Resources hosted the fifth Veteran's Day Celebration for City employees in November, which
included a service project to clean and winterize yards for two local veterans.
o Safety& Risk
o Through increased prevention tactics and proactive work with clinics and employees,the total cost of
worker's compensation claims fell by 44% in 2018 compared to 2017.
■ City of South Bend's average cost per worker's compensation claim is $2,344. Other employers
in the area have an average cost per claim of$4,720.
o Working with the Human Resources department, Safety& Risk implemented a city wide "Active Shooter"
training and policy.
o Partnered with additional clinics to reduce charges at 130% of Medicare rate vs. 80% of billed rate from
the clinics, providing a more predictable cost structure in addition to reductions in actual fees paid.
Provide enduring Financial Strength
o Budgeting
o Working with the Mayor's Office, Common Council, department heads, fiscal officers and others,
prepared and received passage of the 2019 City of South Bend budget that contains funding for priority
projects of the City. This budget contains five-year operating and capital plans as recommended by the
Government Finance Officers Association (GFOA) and credit rating agencies.
o In the spirit of transparency and responsiveness, the City continued the practice of developing its
participatory budgeting processes. In addition to 12 public meetings to discuss the budget, the
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Department of Administration & Finance
Divisions of Finance, Human Resources, Safety & Risk, Central Services & Purchasing
2018 Annual Report
Department of Administration and Finance hosted a Resident Budget Feedback session in the Spring of
2018 to ensure that resident feedback and priorities were incorporated into the budget process.
o The City of South Bend received the Distinguished Budget Presentation Award from the Government
Finance Officers Association (GFOA)for its 2018 Budget. This was the 4th year the City had received the
award.
o Financial Reporting
o The City of South Bend received the Certificate of Achievement for Excellence in Financial Reporting
award from the Government Finance Officers Association (GFOA) for its Comprehensive Annual Financial
Report (CAFR)for the fiscal year ended December 31, 2017. This was the 28th consecutive year that the
City of South Bend has received the award.
o The City of South Bend received the Popular Annual Financial Reporting Award (PAFR Program)from the
Government Finance Officers Association (GFOA)for the fiscal year ended December 31, 2016.This was
the 3rd year that the City of South Bend has received the award.
o Financial Position
o Liquidity
■ Overall cash and investment balance continued to grow throughout 2018. The City now has
roughly 84% of budgeted 2019 City expenditures on hand, which compares favorably to the cash
on hand maintained by other Indiana Second Class Cities (see Chart 1 below):
Chart 1: Cash and Investments
Indiana Second Class Cities
Latest data available via the Indiana Department of Local Government Finance
Annual Cash as a%of 1
City Cash&Inv Expenditures Expenditures
Elkhart $144.451.624 $115.997.549 124.5%
Bloomington $174.579.084 $148.783.929 117.3%
Noblesville $112.756.010 $119.138.417 94 6%
Columbus $95.992.054 $104.447.337 91.9%
South Bend $309.811.785 $368.227.709 84.1%
Jeffersonville $91.554.536 $114.960.362 79.6%
Fishers $135.584.159 $177.699.149 76.3%
Kokomo $81.069.648 $108.745.212 74.6%
Fort Wayne $407.036.470 $577.212.410 70.5%
Westfield $45.621.172 $69.903.591 65.3%
Evansville $251.521.334 $396.583.395 63.4%
New Albany $53.981.387 $85.382.261 63.2%
Mishawaka $115.499.328 $186.404.957 62.0%
Anderson $118.794.380 $221.421.833 53.7%
Richmond $82.210.193 $165.452.736 49 7%
Lafayette $122.151.234 $246.513.926 49.6%
3 Hammond $123.262.003 $267.834.993 46.0%
Portage 837.734.290 $86.036.412 43.9%
Merrillville $20.909.183 $54.934.384 38.1%
Terre Haute $39.157,473 $113.984.063 34.4%
Carmel 866.499.479 $241.034.037 27.6%
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Department of Administration & Finance
Divisions of Finance, Human Resources, Safety & Risk, Central Services & Purchasing
2018 Annual Report
o Debt Management
■ The Department of Administration & Finance worked with the Legal Department and various City
departments to issue three new bonds in 2018:
• Fire Station #9 General Obligation Bonds ($5,045,000)
• Redevelopment District TIF Park Bonds ($11,995,000)
• Economic Development Revenue Bond, Potawatomi Zoo ($3,440,000)
■ Overall debt per capita was maintained at a manageable level of$2,493. This figure compares
favorably with the debt load of other Indiana Second Class Cities (see Chart 2 below):
Chart2: Debt per Capita
Indiana Second Class Cities
Latest data available via the Indiana Department of Local Government Finance
City Debt Outstanding Population Debt per Capita
Terre Haute 28.298.813 60.95o $ 464 25
Elkhart $ 52.940.230 51.421 $ 1.029.54
Merrillville $ 40.214.008 35.450 $ 1.134.39
Kokomo $ 75.247.991 57.085 $ 1.318.17
Richmond $ 61.741.262 36.159 $ 1.707.49
Hammond $ 138.917.224 78.384 $ 1.772.27
Portage $ 89.646.263 36.760 $ 2.438 69
South Bend $ 254.935.846 102.245 $ 2.493.38
Columbus $ 116.562.715 46.124 $ 2.527.16
Anderson $ 143.251.462 55.455 $ 2.583.20
Mishawaka $ 130.572.465 48.174 $ 2,710.43
Bloomington $ 233.605.754 83.322 $ 2.803.65
New Albany $ 114.358.235 36.589 $ 3.125.48
Jeffersonville $ 169.278.292 46.440 $ 3.645.10
Lafayette $ 279.601.497 70.654 $ 3.957.33
Westfield $ 141.450.572 35.297 $ 4.007.44
Fort Wayne $ 1.126.531.745 258,522 $ 4.357.59
Noblesville $ 274.460.375 57.584 $ 4.766.26
Fishers $ 423.391.546 86.325 $ 4.904.62
Evansville $ 1.031.545.191 120.346 $ 8.571.50
Carmel $ 1.329.505.051 86.682 $ 15.337.73
• A high credit rating of"AA"with Standard and Poor's was maintained during 2018. South Bend
has one of the top city bond ratings in the State of Indiana.
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Department of Administration & Finance
Divisions of Finance, Human Resources, Safety & Risk, Central Services & Purchasing
2018 Annual Report
o Operations (Revenue & Expenditures)
• Revenue in 2018 exceeded expenditures by$20.2 million (Unaudited).
• Revenue exceeded expenditures in all Major Funds
o Major Funds include General Fund (101), Parks& Recreation Fund (201), Public
Safety LOIT Fund (249), COIT(404), EDIT (408), EMS Operating Fund (288),
Water Works Operations Fund (620), Sewage Works Operations Fund (641), and
the Century Center Operations Fund (670)
• In addition, revenues exceeded expenditures in every fund category(see Chart 3 below):
Chart 3: Revenues and Expenditures in 2018
Unaudited
2018 2018 2018
Revenue Expenditures Net
(Unaudited) (Unaudited) (Unaudited)
General Fund 62,157,359 59,453,854 2,703,505
Special Revenue Funds 77,075,271 70,782,788 6,292,483
Capital & Debt Service Funds 32,036,542 31,158,128 878,414
Enterprise Funds 96,960,989 91,621,757 5,339,232
Internal Service Funds 37,003,212 34,802,795 2,200,417
Trust Funds 11,191,707 10,820,521 371,186
Tax Increment Financing Funds 35,057,997 34,072,522 985,475
Redevelopment Funds 656,559 29,994 626,565
Debt Service Funds 6,125,823 5,289,977 835,846
Total (2018 Unaudited) 358,265,459 338,032,337 20,233,122
Provide excellent services and efficient processes
o Central Services (Equipment Services)
o Central Services received the MACOG Green Fleet Member of The Year Award.
o Central Services received the NAFA Sustainable Fleet Accreditation Program Certification.
o Equipment Services generated $306,174 in outside revenue, providing services to other non-profit
organizations.
o Equipment Services wrote specifications, bid and purchased 117 vehicles for various departments.
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Department of Administration & Finance
Divisions of Finance, Human Resources, Safety & Risk, Central Services & Purchasing
2018 Annual Report
o Equipment Services completed 18,090 repairs with 2,340 being preventive maintenance and provided a
fleet availability of 98%.
o The Central Services support staff ordered, inventoried, and dispensed 723,000 gallons of liquid fuel
and recorded the usage of 118,000 gallons of compressed natural gas. They track the use of diesel fuel
and administered a diesel tax refund of$68,100. The support staff applies for all new vehicle titles,
license plates, issues fuel keys and enters them into Naviline Fleet& Fixed Asset files. The staff also
processes all (18,000+) repair work orders.
o Equipment Services purchased 7 dedicated compressed natural gas, 1 bi-fueled, and 2 hybrid vehicles
in 2018.
o The Central Services annual auction generated $196,710 in revenue on the sale of 75 used vehicles
and 36 miscellaneous items.
o Central Services (Radio Services)
o Radio Services transitioned SBFD from our VHF system to the statewide 800MHz system.
o Radio Services generated $19,500 in outside revenue providing services to other non-profit
organizations.
o Central Services (Building Maintenance)
o Building Maintenance installed the final CNG fueling ports at Solid Waste, bringing the total to 18. With
the compressor upgrade this will allow all Solid waste trucks to fuel with CNG simultaneously.
o Building Maintenance provided 2,041 hours of labor to user departments at a cost savings of$25 to
$75 per hour.
o Central Services (Print Shop)
o The Print Shop processed 460 job orders totaling 800,000 impressions.
o Purchasing
o Launched Purchasing Card program in 2018 to provide an efficient purchasing solution to end-users and
to receive a rebate on all purchases paid for via the P-card program.
o Continued to develop the City's use of inclusive purchasing strategies to further expand the use of
Minority and Women-owned businesses.
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Department of Administration & Finance
Divisions of Finance, Human Resources, Safety & Risk, Central Services & Purchasing
2018 Annual Report
Provide robust physical and technological assets to residents & employees
o Department of Administration & Finance
o With extensive support and guidance from the Department of Innovation &Technology, the Department
selected Microsoft Dynamics FO as the new Enterprise Resource Planning system for the City. The
implementation of this system has sparked a complete re-evaluation of the City's processes and
procedures to identify inefficiencies and opportunities for improvement. The system is expected to affect
the Accounting, Budgeting, Purchasing, Accounts Payable, Accounts Receivable, Inventory tracking,
Project/Grant tracking and Fixed Assets tracking functions for the City. The Dynamics FO system is
expected to go live in April of 2020.
o The Department continued its commitment to transparency by expanding its use of the public LaserFiche
website (http://docs.southbendin.gov/WebLink/Welcome.aspx?cr=1)to post financial reports and
documents. All monthly financial reports and budgetary documents were posted to this site.
Maintain reliable compliance with regulations and well-managed risk
o Safety& Risk
o Safety& Risk conducted more than 89 facility audits through 2018 with an average score of 91.36%
o Central Services
o Central Services has 3 employees certified for operation of underground storage fuel tanks. We also
have yearly leak testing completed and provides all required reporting to IDEM.
Maintain effective, responsive leadership and communication
o Department of Administration & Finance
o All areas completed performance evaluations in 2018 to identify areas for improvement and provide
ongoing feedback to employees.
o In addition, department-specific goals and initiatives were established for 2019 to provide strategic
direction and accountability.
o Central Services (Equipment Services)
o Equipment Services established a Fleet User Committee. The goal of the committee is to establish an
open line of communication with all user departments. Some of the topics that have been discussed
and worked on are an Idle Reduction Policy, Warranty Policy, and Vehicle Usage Policy. The Warranty
Policy has been completed and the Idle Reduction Policy is in the final draft form.
o Central Services (Radio Services)
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Department of Administration & Finance
Divisions of Finance, Human Resources, Safety & Risk, Central Services & Purchasing
2018 Annual Report
o Radio Service had 2 employees selected to join the Radio Template Committee for the St. Joseph County
911 Center. The committee purpose is to coordinate, update and implement changes to the 800MHz
radio system utilized by all agencies within the county.
Strategic Goals / Initiatives for 2019
Be a great employer with great employees
o Human Resources
o Complete implementation of new Kronos HRIS system.
o Hone the City's employment policies to promote fairness, equity, and compliance, including
implementation of the volunteer time off policy, harassment training for all employees, and the vacation
donation program. Evaluate and implement new policy providing vacation to all new employees.
o Safety& Risk
o Reduce worker's compensation claim count by 15% compared to 2018 claim count
o Reduce cost of injuries by 10% compared to 2018 total cost.
o Expand employee safety training offerings by close to 2,000 man hours over 2018 trainings held.
o Explore and implement an environmental health and safety platform to allow supervisors and employees
access to training, data entry and resources in the field. This will allow for better data sharing with all
departments for more real time information.
o Develop a structure for all Safety personnel to have an organizational connection back to a centralized
Safety and Risk Management function to allow better resources to all departments.
o Explore and implement a notification system for all city employees of real time information.
o Update all training materials and programs to reflect current challenges within our organization.
o Mandate basic training for all supervision as it related to Safety, Emergencies, FEMA and disasters.
o Formalize a Business Contingency plan for emergencies and shut downs.
Provide enduring Financial Strength
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Department of Administration & Finance
Divisions of Finance, Human Resources, Safety & Risk, Central Services & Purchasing
2018 Annual Report
o Budget&Accounting
o Continue to refine role of Fiscal Officers, particularly in the context of new potential job responsibilities
resulting from process reviews within the context of the Dynamics FO implementation.
o Evaluate monthly financial reports to ensure that all information provided is easily understood and
verifiable. Pursue the production of a monthly "fiscal dashboard" that easily communicates financial
position at the City-wide, Department, and Fund levels.
o Continue to maintain adequate cash reserves per City of South Bend policy and industry standards.
o Continue to promote best practices in municipal budgeting including continued integration of five-year
operating and capital plans, the use of Performance Management in budgeting and priority-based
budgeting.
o Explore ways to increase resident participation in the budget cycle, including soliciting feedback more
often and through multiple channels (i.e. online, in-person, etc.)
o Evaluate a more centralized approach to capital budgeting to properly assess strategic importance of
capital projects and ensure that capital spending is inextricably linked to strategic priorities.
o Conduct a formal assessment of internal controls within the City, focusing especially on the cash receipt,
purchasing, and accounts payable functions.
Provide excellent services and efficient processes
o Central Services (Equipment Services)
o Add two new customers in Equipment Services & Radio Communications to increase revenues.
o Implement a new Idle Reduction Policy to reduce the City's fuel usage and Carbon Footprint.
o Secure grant dollars to help pay for alternate fueled vehicles.
o Selection and implementation of new Fleet Software.
o Equipment Services to continue working on achieving the Blue Seal Certification.
o Upgrade of Solid Waste CNG fueling compressor.
o Coordinate with IT to expand Automatic Vehicle Location (AVL) capabilities.
o Central Services (Building Maintenance)
o Complete inventory of all City facilities including CAD drawings and mechanicals.
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Department of Administration & Finance
Divisions of Finance, Human Resources, Safety & Risk, Central Services & Purchasing
2018 Annual Report
o Establish facility energy management program.
o Selection and implementation of Facility Management and work order software.
o Partner with Sustainability and SBFD to procure solar panel installation on multiple fire stations.
o Purchasing
o Increase number of MWBE vendors and dollar spend.
o Implement new Purchasing Card Policy.
o Redesign Purchasing Policy to better align with State law, to improve purchasing practices, and to
include language supporting the diversity & inclusion purchasing mindset.
o Find 1-10%savings in total expenditures from 10 City departments.
o Re-align department to better centralize purchasing structure.
o Continue to provide savings through centralized purchasing. Targeting VPA and PD as departments
where savings can best be captured.
o Explore partnership with Amazon Government Services to determine whether additional savings can be
achieved.
Provide robust physical and technological assets to residents & employees
o Department of Administration & Finance
o Working closely with IT as well as other City departments, in 2019, the Department of Administration and
Finance will complete the bulk of the work necessary to implement Microsoft Dynamics FO. This includes
a full review of processes and redesign of procedures to attain best practices as the new system is
designed. The new system is expected to go live on April 1, 2020.
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