[FY 2024 Budget Workshop: Controller's Office]
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NOW WE WOULD LIKE TO WELCOME CITY CONTROLLER, CHRIS BROWN AND DEPUTY CONTROLLER LEONARD POLK TO PROVIDE THE CONTROLLER'S OFFICE DEPARTMENT PROPOSED BUDGET FLOOR'S.I THOUGHT YOU WERE GONNA MAKE ME REDO THE TRENDS REPORT, SO THANK YOU FOR, I KNOW NO ONE WANTS TO GO THROUGH THAT AGAIN.
WELL, WE'RE HAPPY HERE TO PRE PRESENT THE, UH, CONTROLLER'S OFFICE FY 24, UH, BUDGET.
UH, WITH ME TO MY RIGHT, I HAVE LEONARD POLK, OUR DEPUTY CONTROLLER OF OUR OPERATIONS AND TECHNICAL SERVICES.
UH, WE ACTUALLY HAVE, UH, SIX DIVISIONS IN THE CONTROLLER'S OFFICE THAT ARE WORKING ON BEHALF OF THE CITY TAXPAYERS.
UH, ALSO WANNA RECOGNIZE SHANNON NOBLES, OUR CHIEF DEPUTY CONTROLLER, SHANNON.
UH, WE HAVE, UH, CHERISE MOSLEY, THE DEPUTY CONTROLLER FOR TREASURY.
WE HAVE, UM, COURTNEY SMITH, I BELIEVE, OUR CITY AUDITOR NOW.
UH, BEVERLY LEE RIGGINS, OUR DEPUTY CONTROLLER, UH, FOR FINANCIAL REPORTING.
UM, AND I THINK CHANEL, UH, CLARK IS THERE, AND CONRAD LIM, ALSO IN OUR FINANCIAL REPORTING, UH, DIVISION.
AND JOHN SEIDLER, OUR, UH, COMMUNICATIONS DIRECTOR.
SO ALL THESE PEOPLE HELP, UH, TO MAKE, UM, MY JOB, OUR JOB EASIER, UH, WORKING, UM, IN THE CONTROLLER'S OFFICE.
SO, UM, WE'LL GO AHEAD AND MOVE INTO THE PRESENTATION.
AGAIN, THE ORGANIZATIONAL CHART.
UM, SO BASICALLY, UM, LET'S SEE HERE.
UM, WE HAVE, UH, THE ALIGNMENT, UH, FOR THE CONTROLLER'S OFFICE IN SIX, UH, DIVISIONS, UH, WITH THE OBB UH, FRAMEWORK.
SO YOU CAN SEE SOME OF OUR, OUR, UH, TARGETS AND SUCH.
SO, EXPENDITURES BY PROGRAM, UH, IN THOUSANDS.
UM, HERE YOU CAN SEE A HISTORICAL OUTLINE OF THE EXPENDITURES ACROSS EACH OF THE SIX DIVISIONS.
UH, ONE OF THEM THAT YOU'LL NOTICE FROM THE TOP HERE IN ADMINISTRATIVE SERVICES, WE HAVE A 26%, UH, DECREASE IN ADMINISTRATION.
UM, THIS IS BASICALLY DUE TO REDUCTIONS IN SALARIES AND, AND BUDGET FOR PROFESSIONAL SERVICES.
UM, BUT OVERALL, UH, PRETTY FLAT BUDGET YEAR OVER YEAR.
UH, SO WITH, UH, THE ADMINISTRATIVE SERVICES, UH, WE HAVE TWO AND A HALF FTES.
THE ADMINISTRATION DIVISION OVERSEES THE ADMINISTRATIVE FUNCTIONS OF THE OFFICE.
UM, THE TOTAL, UM, BUDGET HERE IS, UH, $795,672, AND YOU CAN SEE, UH, PERFORMANCE MEASURES BELOW.
UH, THE AUDIT DIVISION, UH, IS RESPONSIBLE FOR THE AUDIT FUNCTIONS OF THE CITY, INCLUDING MANAGING THE CITY'S, UH, FRAUD, WASTE AND ABUSE HOTLINE, PROVIDING AUDITS AMONG OTHER THINGS.
UM, THE TOTAL BUDGET, UH, IS 1.593, UH, 101.5 MILLION, NINE $93,522.
YOU KNOW, JUST SOME, UM, COMMENTS.
UH, WE'VE TALKED AT, AT LENGTH ABOUT OUR AUDIT DIVISION.
WE'VE, UM, YOU KNOW, LOOKED AT SOME OF THE OTHER, UH, CITIES IN THE COUNTRY.
UM, AND, YOU KNOW, JUST TAKING A, A BRIEF MOMENT TO DIGRESS.
UM, YOU KNOW, HOUSTON HAS AUDIT STAFF OF ABOUT 10 PEOPLE.
UM, WHEN YOU LOOK AT CITIES IN, IN TEXAS, WHICH I THINK WE'RE MOST COMPARABLE TO, UH, WHETHER IT'S DALLAS AT 20, AUDITORS, AUSTIN AT 29, AUDITORS SAN ANTONIO AT 23 AUDITORS, UM, YOU KNOW, WE'RE, WE'RE, WE'RE BEHIND IN THE NUMBER OF AUDITORS.
UH, IT'S BEEN A CHALLENGE, OBVIOUSLY, BECAUSE WE'VE ALL HAD TO DO MORE WITH LESS.
AND, YOU KNOW, ONE OF THE THINGS AS THE CONTROLLER, I LIKE TO NOT ONLY TALK THE TALK, BUT WALK THE WALK.
SO, YOU KNOW, WE HAVE PARTICIPATED IN, YOU KNOW, BUDGET REDUCTIONS RIGHT ALONGSIDE ALL THE OTHER CITY DEPARTMENTS OVER THE LAST EIGHT YEARS.
BUT, YOU KNOW, FRANKLY, IT'S COME AT A COST IN PART, UH, BECAUSE OF OUR, UH, HEADCOUNT HAS BEEN REDUCED.
AND THAT HAS ALSO, UH, WE'VE TRIED TO NOT DO THAT IN, IN AUDIT, BUT WE'VE NOT BEEN ABLE TO ADD PEOPLE.
UM, SO IT, IT'S A CHALLENGE GOING FORWARD.
UH, ESPECIALLY, UH, WHEN YOU LOOK AT CHICAGO, WHICH, YOU KNOW, MANY SAY, UH, WE'RE SOON TO, UH, ECLIPSE CHICAGO AS THE THIRD LARGEST CITY IN THE COUNTRY.
UH, CHICAGO HAS, UH, 91 PEOPLE ON THEIR AUDIT STAFF.
SO, AND AGAIN, AS A COMPARATIVE, UH, WE'VE GOT 10.
SO I WOULD HOPE, AND I KNOW THERE
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HAS BEEN SOME DISCUSSION, ALTHOUGH, UM, YOU KNOW, IT'S, IT'S A, IT'S A CHALLENGE GOING FORWARD BECAUSE WE KNOW AT SOME POINT IN, AS WE DISCUSSED IN THE PREVIOUS SESSION IN 26, WE'RE GONNA PROBABLY SEE SOME PRETTY, UH, STEEP REDUCTIONS IN, UH, REVENUE.UM, BUT WE REALLY, UH, I THINK DO NEED MORE AUDIT STAFF.
AND I ALSO BELIEVE THAT, YOU KNOW, UH, WE'LL GET A RETURN ON INVESTMENT ON THAT.
IF WE SEE AUDIT, UH, THE AUDITS THAT WE'VE DONE OVER THE PAST EIGHT YEARS, YOU KNOW, WE'VE ANTICIPATED THAT, UH, THE SAVINGS THERE, UH, UPWARDS OF, UH, 10 OR $11 MILLION.
SO, YOU KNOW, EVERY YEAR THAT WE'RE SPENDING MONEY IN THAT DIVISION, I THINK WE'RE GETTING A RETURN ON OUR INVESTMENT.
SO, THE EXECUTIVE DIVISION, WE HAVE A 4.7, UH, FDE COUNT.
UM, THE EXECUTIVE DIVISION SETS THE POLICY PRIORITIES FOR THE OFFICE REVIEWS AND APPROVES NEW ACCOUNT OR FUND REQUEST REVIEWS, PAYMENTS, REVIEWS, AND APPROVES CONTRACTS AND ORDINANCES, AND ENSURES COHESIVENESS ACROSS THE OTHER FIVE DIVISIONS.
UH, THE TOTAL, UH, DEPARTMENTAL, UH, SORRY, DIVISIONAL BUDGET FOR, UH, EXECUTIVE IS, UH, $970,409.
UH, THE FINANCIAL REPORTING DIVISION IS RESPONSIBLE FOR COMPILING THE MONTHLY FINANCIAL REPORTS, QUARTERLY REPORTS, ANNUAL CONSTANT COMPREHENSIVE FINANCIAL REPORT, AND OUR ANNUAL TRENDS REPORT.
SO A LOT OF THE, UH, THINGS THAT YOU GUYS ARE SEEING IN ALL THESE MEETINGS, THAT'S THE RESPONSIBILITY TO FINANCIAL REPORTING.
UM, INCLUDED IN THIS BUDGET IS THE FUNDING FOR THE WORKIVA PROGRAM, AND THAT'S A SOFTWARE PROGRAM THAT WAS RECENTLY APPROVED BY COUNCIL THAT WILL SIGNIFICANTLY STREAMLINE THE PROCESS OF DEVELOPING OUR ANNUAL COMPREHENSIVE FINANCIAL REPORTS.
SO, DID WANT TO JUST THANK COUNCIL.
UM, I THINK, AGAIN, THAT'S GONNA BE AN EXPENDITURE THAT WILL END UP BEING A GREAT RETURN ON INVESTMENT 'CAUSE IT WILL REDUCE THE AMOUNT OF MAN HOURS FOR BOTH INTERNALLY, MY STAFF AND EXTERNALLY THAT WE PAY TO OUR AUDITORS, UH, IN COMPILING THAT ANNUAL AUDIT EVERY YEAR.
SO I THINK THAT THAT IS A GREAT INVESTMENT, UH, AND APPRECIATE THAT.
UM, AND LOOKING AT FINANCIAL REPORTING, UH, WHICH IS A TOTAL BUDGET OF 1.7, UH, MILLION $81,229.
AND THIS IS, UH, MR. POLKS DIVISION.
UH, AND HE'S, UH, GOT THE LARGEST OF ALL OF THE, UM, DIVISIONS IN THE, UH, CONTROLLER'S OFFICE.
THEY ARE RESPONSIBLE FOR ADMITTING MORE THAN 60,000 PAYMENTS A YEAR.
UH, AND REALLY WE SAY THIS IS THE WORKHORSE DIVISION.
SO I APPRECIATE HIS WORK AND ALL OF HIS TEAM MEMBERS.
UM, AND, YOU KNOW, ONE OF THE BIG THING IS WE, UH, ENSURE THAT NOT ONLY, UH, CITY EMPLOYEES, BUT ALSO VENDORS, UH, GET PAID, UH, THE TOTAL, UH, DIVISIONAL BUDGET, UH, $2,540,679.
UM, WE'VE DONE A, A REALLY GOOD JOB OF, UM, YOU KNOW, WORKING THROUGH A LOT OF, UH, BUDGET REDUCTIONS AND HEAD COUNT.
WHEN I FIRST, UH, CAME INTO THE CONTROLLER'S OFFICE 14 YEARS AGO AS THE DEPUTY CONTROLLER, WE HAD ABOUT 85, UH, STAFF, AND NOW WE HAVE, UH, LESS THAN 60.
UH, SO A LION'S SHARE OF THOSE, UH, HAVE BEEN, UM, JUST BECAUSE OF THE SHEER SIZE OF OPERATIONS HAVE BEEN REDUCTIONS IN HEADCOUNT AND OPERATIONS.
SO I DIDN'T KNOW IF YOU HAD ANY COMMENTS OF ANYTHING.
UM, THE MAJOR, UM, OPERATIONS, NOT JUST ONLY THE VENDOR PAYMENTS AND PAYROLLS, UM, BAKERY, BANK RECON, UM, WE NEED MORE PEOPLE FOR RECORDS MANAGEMENT.
UM, DOCUSIGN HAS, UM, REALLY SAVED US FAR AS THE AMOUNT OF PAPER THAT GOES OUT THE DOOR.
BUT EVEN WITH DOCUSIGN, DIGITAL RECORD KEEPING IS A BIG WORKLOAD.
SO, UM, WE NEED MORE PEOPLE TO GET THE JOB DONE, BUT WE ARE VERY EFFICIENT IN WHAT WE DO IN THE CITY CONTROLLER'S OFFICE.
AND, AND A LOT OF WORK DOING MORE WITH LESS.
SO HERE'S A CONTINUATION OF, UM, OPERATIONS PERFORMANCE AND INDICATORS.
AS I MENTIONED, IT'S REALLY THE WORKHORSE DIVISION.
SO HERE YOU CAN KIND OF SEE, AND I'M NOT GONNA GO THROUGH ALL THESE, BUT YOU CAN GET AN IDEA OF, UH, THE NUMBER OF, UH, CONTRACTS, UM, CHECKS AND PAYMENTS.
UH, WE'VE REALLY BEEN WORKING TO REDUCE THE NUMBER OF PAPER CHECKS.
'CAUSE AGAIN, I THINK, UH, NOT ONLY FROM, YOU KNOW, ERRORS, BUT ALSO FROM COST OF HAVING STAFF, YOU KNOW, GO OUT AND PRINT CHECKS.
UH, WE'VE MOVED, UH, UH, ENORMOUS AMOUNT OF, UH, PEOPLE TO A CH UH, ELECTRONIC PAYMENT, BUT THERE'S STILL A LOT OF PEOPLE THAT WANT TO GET PAID WITH A PAPER CHECK.
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UH, TO FIND WAYS, UH, TO REDUCE THOSE NUMBERS.UM, AND, UM, WE ALSO HAVE BEEN ABLE TO, UM, GET EARLY PAYMENT DISCOUNTS FROM VENDORS.
UH, AND WE HOPE TO CONTINUE TO INCREASE THAT AMOUNT OF, OF MONEY.
AND THOSE ARE PEOPLE THAT ARE ESSENTIALLY TAKING A HAIRCUT ON A PAYMENT TO GET PAID, UH, FASTER THAN 30 DAYS.
UM, THAT NUMBER HAS BEEN STEADILY RISING.
UM, WE HOPE THAT IN FY 24, UM, YOU KNOW, WE CAN CONTINUE TO WORK TOWARDS THAT MILLION DOLLAR NUMBER, BUT THAT WOULD BE JUST OVER 900,000.
FINALLY, OUR TREASURY DIVISION IS RESPONSIBLE FOR MANAGING A $6 BILLION INVESTMENT PORTFOLIO AND A $14 BILLION DEBT PORTFOLIO.
I KNOW WHEN I GO AND SPEAK AT, UH, CONFERENCES ACROSS THE COUNTRY, AND I SAY WE MANAGE A $6 BILLION INVESTMENT, I'M SORRY, A $6 BILLION, UH, DEBT PORTFOLIO AND A $6 BILLION INVESTMENT FUND IN-HOUSE.
THAT IN-HOUSE REALLY GETS THE ATTENTION OF PEOPLE, BECAUSE A LOT OF THESE CITIES RELY ON THIRD PARTY MANAGERS, OUTSIDE MANAGERS TO DO THAT.
WE DO IT IN-HOUSE BECAUSE QUITE FRANKLY, THIS SHEER SIZE, UH, IF WE DID A THIRD PARTY MANAGER, THE COSTS, UH, WOULD BE, UH, SUBSTANTIALLY MORE.
UH, YOU CAN SEE OUR TOTAL BUDGET FOR TREASURY, UH, $1,342,149.
SO, UM, YOU KNOW, THEY AGAIN, HAVE BEEN DOING MORE WITH LESS.
UM, WE DO KNOW THAT, UH, CHERISE, MOSLEY, I DON'T KNOW, UH, CHERISE IS STILL HERE.
CHERISE UH, IS RETIRING LATER THIS YEAR, UH, AT THE END OF JULY, AFTER I KNOW SHE'S BEEN ON AND OFF WITH THE CITY FOR I THINK, 30 YEARS.
SHE WAS AT THE CITY AND THEN LEFT, UH, AND WENT TO THE COUNTY AND THEN CAME BACK BECAUSE SHE, SHE LOVED ALL OF US SO MUCH.
SHE CAME BACK TO THE CITY, UH, AND HAS BEEN THE, UM, DEPUTY CONTROLLER OVER TREASURY, UM, FOR THE LAST, HOW LONG HAS IT BEEN? I LOST TRACK.
SO WE DO WANT TO THANK HER FOR HER SERVICE.
BUT YOU KNOW, AGAIN, THIS IS A, ANOTHER ISSUE THAT, UM, WE'RE DEALING WITH IS, UH, ATTRITION.
WE'RE, WE'RE SEEING SOME OF OUR LEGACY PEOPLE.
UM, YOU KNOW, QUITE FRANKLY, SOMEONE WITH 30 YEARS OF EXPERIENCE IN TREASURY IS, THAT'S DIFFICULT TO REPLICATE.
I TELL PEOPLE, INSTITUTIONAL KNOWLEDGE, IT'S NOT KNOWING WHAT TO DO.
SOMETIMES IT'S KNOWING WHAT NOT TO DO.
I KNOW MR. POLK, UH, UNDERSTANDS THAT HE'S BEEN AT THE CITY FOR 27 YEARS.
SO WE HAVE A LOT OF FOLKS WITH A LOT OF INSTITU INSTITUTIONAL KNOWLEDGE IN THE CONTROLLER'S OFFICE.
UH, MOVING ON, UH, NEXT SLIDE.
SO, OUR OFFICE IS ENTIRELY FUNDED, UH, BY GENERAL FUND DOLLARS.
IF YOU LOOK AT THE FY 24 PROPOSED, UH, 9 MILLION, 24,000, UM, YOU KNOW, VARIANCE OF, UH, $69,000, LESS THAN 1%.
WE, WE ALWAYS REALLY TRY AND, UM, YOU KNOW, MANAGE A REALLY TIGHT BUDGET.
UH, WE TRY AND UTILIZE ALL OF OUR, UH, FUNDS THAT WE HAVE AVAILABLE.
UM, I THINK, YOU KNOW, IN A PERFECT WORLD, WE'D BE ABLE TO, UH, GET INCREASED FUNDING FOR SOME OF THESE DIFFERENT AREAS.
BUT, UM, I JUST WANNA THANK MY STAFF, UH, FOR CONTINUING TO DO THE HARD WORK THAT A LOT OF TIMES DOESN'T GET RECOGNITION.
AND, AND AGAIN, THESE THINGS ARE IN THE CONTROLLER'S OFFICE.
VERY IMPORTANT FUNCTIONS WHEN YOU'RE TALKING ABOUT, YOU KNOW, PAYING DEBT SERVICE PAYMENTS OR, UH, PAYING VENDOR PAYMENTS OR, OR PAYROLL FOR ALL OF THE GOOD CITIZENS IN THE CITY OF HU IN, UM, I'M SORRY, ALL THE GOOD EMPLOYEES AT THE CITY OF HOUSTON.
SO, UH, THANK YOU AGAIN TO THEM.
IF YOU LOOK AT, UM, OUR PERSONNEL VERSUS NON-PERSONNEL, UM, 86% OF OUR EXPENSES ARE TIED TO PERSONNEL COSTS WHILE THE REMAINING 14% REPRESENT CHARGES FOR SERVICES AND SUPPLIES.
UM, SO IF YOU LOOK AT THE PREVIOUS PRESENTATION THAT I MADE, UM, YOU KNOW, WE'RE NO DIFFERENT THAN THE REST OF THE CITY.
A MAJORITY OF OUR BUDGET IS IN, IN PERSONNEL.
UM, WE ARE A SERVICE, UH, ORGANIZATION.
UM, YOU KNOW, THE CHALLENGE BECOMES, UH, WHAT HAPPENS IN, YOU KNOW, 26, IF, YOU KNOW, WE HAVE TO CUT OUT OF THIS BUDGET, I CAN TELL YOU, UH, WE'RE NOT GONNA BE ABLE TO CUT OUR, YOU KNOW, SOFTWARE PROGRAM THAT MANAGES OUR, OUR DEBT SERVICE PAYMENTS, YOU KNOW, SOME OF THESE THINGS THAT WE JUST, WE CAN'T ELIMINATE.
SO, YOU KNOW, THOSE CUTS PROBABLY GO IN THAT OTHER BUCKET, THE 86% OF PERSONNEL.
SO WE DON'T HAVE ANY REVENUE TO REPORT.
SO WE'RE GONNA GO AHEAD AND GO TO THE NEXT SLIDE AND NEXT SLIDE.
AND BE HAPPY TO ANSWER ANY QUESTIONS.
THANK YOU CONTROLLER, UH, AND DEPUTY CONTROLLER FOR, UH, THE PRESENTATION.
UH, I THINK YOU ALL'S OFFICE DOES A LOT WITH THE LITTLE, BUT I ALSO BELIEVE THAT WE HAVE TO LOOK AT ENSURING THAT
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WE GET BANGED FOR OUR BUCK.AND I THINK THE, THE MORE, UH, BANG WE PUT IN THE CONTROLLER'S OFFICE, THE MORE BUCKS, UH, WE RECEIVE, UH, FROM AN INVESTMENT STANDPOINT.
AND SO, UM, YOU KNOW, IF WE INCREASE THE AUDITOR COUNT, YOU KNOW, HOPEFULLY WHAT THAT WILL BE ABLE TO BRING TO US AS A BODY IS WAYS IN WHICH WE CAN HAVE COST SAVINGS OR BE MORE EFFICIENT WITHIN OUR CITY.
SO THAT'S, THAT'S, UM, I THINK AN EXPENSE WORTH, UH, INVESTING IN THE QUESTION IS, UM, HOW MUCH, UH, IS THE SALARY ESTIMATED FOR AN AUDITOR AND THEN THE AVERAGE SALARY FOR A PERSON IN OPERATIONS? WELL, I WILL TAKE THE AUDITOR ONE AND I'LL LET MR. POPE TALK ABOUT OPERATIONS.
UM, YOU KNOW, IT, IT'S DIFFICULT TO PINPOINT, I WOULD SAY, UH, FOR AN ENTRY, UH, LEVEL, UH, AUDITOR, UH, ONE WITH SALARY AND BENEFITS, WE'RE PROBABLY TALKING ABOUT $75,000 A YEAR.
UM, YOU KNOW, WE, WE NEED A COUPLE OF THOSE POSITIONS, BUT I THINK WE'RE ALSO NEEDING SOME AUDITOR TWO AND THREES.
UM, THE CHALLENGE REALLY IS, UM, YOU KNOW, WE, WE HAVE A VERY COMPETITIVE LABOR MARKET RIGHT NOW.
SO WE WILL GET PEOPLE THROUGH AN INTERVIEW PROCESS, UM, IN AUDIT SPECIFICALLY, AND OFFER THEM A LETTER OF EMPLOYMENT FOR THE CITY.
AND, YOU KNOW, WHAT WE'RE SEEING A LOT OF TIMES IS THEY'LL USE THAT LETTER AND TAKE IT TO THE PRIVATE SECTOR AND SAY, HEY, YOU KNOW, I'M POTENTIALLY GETTING THIS MUCH FROM THE CITY OF HOUSTON.
SO, YOU KNOW, AND, AND I KNOW THEY PRIVATE SECTOR, YOU KNOW, AUDITING, UH, FIRMS ARE HAVING THE SAME ISSUE.
THEY'RE, YOU KNOW, GET AN OFFER FROM ONE AND THEY GO TO THE OTHER.
AND IT JUST, YOU KNOW, WITH UNEMPLOYMENT AT SUCH HISTORIC LOW RATES, UH, IT'S VERY DIFFICULT RIGHT NOW TO, TO HIRE PEOPLE.
SO, UM, I'D OFFER THAT NUMBER.
UM, YOU KNOW, IT COULD BE HIGHER BECAUSE, YOU KNOW, THAT'S THE KIND OF THE CHALLENGE THAT WE'VE BEEN, UH, DEALING WITH.
UM, UH, SO IF YOU HAD THE MONEY, DO YOU THINK YOU CAN HIRE SOMEBODY? I THINK, YEAH, OBVIOUSLY IF WE HAVE THE MONEY, I THINK THAT THE, THE CHALLENGE IS, UM, YOU KNOW, WHAT'S, WHAT IS THAT ACTUAL NUMBER, RIGHT? UM, OKAY.
UH, AGAIN, YOU KNOW, IT'S PERSON SPECIFIC.
SOME FOLKS MIGHT SAY, HEY, I REALLY LIKE THE IDEA OF WORKING AT THE CITY.
OTHERS MIGHT SAY, HEY, I'M JUST TRYING TO GET, YOU KNOW, THE BEST OFFER I CAN GET BECAUSE IT'S SUCH A GOOD MARKET.
AND THEN FOR OPERATIONS, OPERATIONS BE GROWN 55 TO 60,000 PER PERSON, SO FOR JUST BASE SALARY, OR IS THAT TAKEN INTO ACCOUNT LIKE, UH, THAT'S BASE SALARY BASE.
AND THE, THE POLICY ON THE, THE, THE, THE PAPER CHECK VERSUS THE A CH, UM, IS THAT SOMETHING THAT WE, WE HAVE PUT TOGETHER OR IS THAT SOMETHING THROUGH YOUR OFFICE, YOU ALL CAN MAKE A POLICY SAYING, YOU KNOW, YOU DON'T, YOU DON'T GET A PAPER CHECK, YOU JUST GONNA GET A A CH REGARDLESS OF WHAT YOU WANT? I, I THINK IT PROBABLY IS SOMETHING THAT WE COULD EXPLORE AROUND THIS BODY TO SAY WE'RE, YOU KNOW, AND I, I RECOMMEND, YOU KNOW, EVERYTHING SHOULD MOVE TO A PAPERLESS ENVIRONMENT BECAUSE IT'S MORE COST EFFECTIVE.
UH, CERTAIN INSTANCES WITH LIKE THE PROMPT PAY ACT, THE STATE PROMPT PAY ACT, UH, REQUIRE IN CERTAIN SITUATIONS WHERE, YOU KNOW, WE HAVE TO MAKE A PAYMENT AT A SPECIFIC TIME, WE CAN CUT A CHECK DAY OF IF YOU DO AN A CH, FOR EXAMPLE, UH, THAT HAS TO ROUTE THROUGH THE, WHAT THEY CALL NCHA SYSTEM.
UM, A LOT OF TIMES, DEPENDING ON WHAT BANK YOU'RE IN, IT COULD BE A ONE TO TWO DAY DELAY.
UM, SO, UM, OUTSIDE OF THE, UM, REGULATORY FRAMEWORK, I, I THINK IT'S SOMETHING THAT WE COULD DEFINITELY EXPLORE AND, AND WE CONTINUE TO, TO PUSH TOWARDS.
THERE ARE A LOT OF THINGS THAT, UM, WE HAVE HISTORICALLY HAVE DONE, LIKE, UM, UM, REFUNDS FOR PARKING TICKET ERRORS OR JURY DUTY PAYMENTS, THINGS OF THAT NATURE THAT HISTORICALLY HAVE BEEN CHECKS.
UH, I KNOW WE'RE WORKING AWAY FROM THAT, BUT THAT WOULD BE PROBABLY THE LOW HANGING FRUIT TO START WITH THOSE TYPE OF LARGE SCALE LOW DOLLAR PAYMENTS.
ALSO WANTED TO EDIT MY FORMER COMMENT.
UH, I GOT A TEXT JUST NOW AND THEY SAID, NO, THAT AUDIT NUMBER IS CLOSER TO 85,000.
SO JUST IN THE TIME THAT I ANSWERED, AND NOW THAT I'VE, UH, THE MARKET HAS CHANGED, THE MARKET HAS CHANGED, I HAVE A LITTLE MORE CLARITY TO THAT.
FOR A CCA THREE ASSISTANT CITY AUDITOR, THREE POSITION, THE SUNNY 5K BASE, A FOUR WOULD BE 85.
SO THOSE ARE FOR HIGHER LEVELS.
SO MAYBE MY INITIAL NUMBER WAS ACCURATE.
COUNCIL MEMBER ALCORN, YOU ASKED WHAT I WAS WAS GONNA ASK, BUT THE IN OPERATIONS AND, AND,
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UM, AUDIT, THAT'S, THAT'S WHERE YOU NEED PERSONNEL, THOSE TWO SECTIONS.WELL, I THINK, YOU KNOW, WE'D, WE'D LIKE, LOOK, THIS IS A, A SITUATION THAT I THINK EVERY DEPARTMENT IS FACING.
I THINK ALSO, YOU KNOW, WE HAVE SOME CHALLENGES IN TREASURY, UM, WITH, UH, ATTRITION AND PEOPLE LEAVING.
WE HAVE CERTAIN, UH, SEGREGATION OF DUTIES.
FOR EXAMPLE, WHEN YOU MAKE WIRE PAYMENTS, YOU HAVE TO MAKE SURE THAT, YOU KNOW, ONE PERSON ISN'T ENTERING AND ONE PERSON ISN'T PAYING.
SO YOU NEED TWO PEOPLE DOING THAT.
UM, AS WE CONTINUE TO HAVE PEOPLE THAT LEAVE, WHETHER THAT'S THROUGH RETIREMENT OR TO TAKE OTHER POSITIONS, UM, WE'VE GOTTA MAKE SURE WE GET THOSE, UH, BACKFILLED, BUT WE PROBABLY COULD USE ONE, UH, AT LEAST ANOTHER PERSON IN, IN TREASURY AS WELL.
UH, I THINK WHAT WE'RE, YOU KNOW, WHAT WE'RE WANTING IS NOT, UM, YOU KNOW, IT'S NOT A LOT OF MONEY.
AND AGAIN, I WANT TO BE COGNIZANT OF THE FRAMEWORK THAT WE'RE DEALING WITH IN THE FUTURE.
BUT, UM, MY CONCERN IS, AND AGAIN, LEAVING IT IN A GOOD POSITION FOR WHOEVER IS THE NEXT CONTROLLER, WOULDN'T WANNA HAVE A ISSUE, YOU KNOW, SIX MONTHS AFTER I LEFT WHERE THERE WAS A DEBT SERVICE PAYMENT THAT DIDN'T GET PAID OR A, YOU KNOW, SOMETHING THAT DIDN'T GET DONE BECAUSE, YOU KNOW, PEOPLE LEFT AND WE DIDN'T HAVE, UH, THE APPROPRIATE STAFF.
DID YOU SAY THAT THE AUDIT DEPARTMENT, I THINK YOU SAID OVER THE LAST EIGHT YEARS HAD SAVED 10 TO 11 MILLION? DID I HEAR THAT RIGHT? THAT'S IDENTIFIED SAVINGS.
I MEAN, YOU KNOW, WE'VE GONE THROUGH THIS EXERCISE AT THE COUNCIL TABLE.
I THINK COUNCIL MEMBER HUFFMAN HAS ASKED, YOU KNOW, WHAT PERCENTAGE OF THE AUDITS, UH, THAT WE'VE IDENTIFIED THOSE SAVINGS, UM, YOU KNOW, HAVE ACTUALLY BEEN IMPLEMENTED.
AND, AND UNFORTUNATELY THAT PERCENTAGE IS, IS NOT VERY HIGH.
UM, MY DEPARTMENT DOESN'T HAVE THE RESOURCES TO BE ABLE TO GO WORK WITH THE DEPARTMENTS AND IMPLEMENT A LOT OF THESE CHANGES.
THAT'S SOMETHING THAT EITHER THE DEPARTMENTS HAVE TO DO OR, YOU KNOW, A THIRD PARTY, UM, YOU KNOW, CONSULTANT PROGRAM MANAGEMENT OFFICER NEEDS TO DO.
UM, BUT YOU KNOW, IT'S A SUBSTANTIAL AMOUNT OF MONEY EVEN ABSENT THE IMPLEMENTATION RATE BASED ON, YOU KNOW, THE, THE DOLLAR THAT WE'RE SPENDING.
WHEREAS MOST, YOU KNOW, DEPARTMENTS IN THE GENERAL FUND, IT'S A NON-BUSINESS TYPE, YOU KNOW, OPERATION.
SO IT'S JUST, YOU KNOW, SPEND AND NO, NO RETURN ON INVESTMENT.
WE HAVE NO OTHER COUNCIL MEMBERS OR STAFF IN Q.
SO I WANT TO THANK YOU ALL AGAIN IN YOUR ENTIRE, UH, STAFF FOR ALL THAT YOU DO.
WE KNOW THAT YOU ALL MAKE A LOT HAPPEN WITH NOT A LOT OF RESOURCES.
UM, AND, UH, WE TRULY APPRECIATE IT.
SO, UH, THANK YOU VERY MUCH, AND YOU'RE DISMISSED.
WHEN YOU HEAR YOUR NAME, PLEASE COME FORWARD TO THE PODIUM.
THE FIRST PUBLIC SPEAKER IS MR. DOUG SMITH.
THIS IS THE LAST DAY, AND I HAVE TO LEAVE AFTER THIS PRESENTATION, BUT I THINK YOU ALL DESERVE AN ACKNOWLEDGEMENT.
AND THOSE OF YOU WHO AREN'T HERE, BECAUSE I KNOW THE AMOUNT OF EFFORT THAT GOES INTO THESE MEETINGS, YOU NOT ONLY HAVE THESE MEETINGS, YOU HAVE YOUR REGULARLY TUESDAY AND WEDNESDAY MEETINGS THAT YOU'VE GONE THROUGH, AND I'VE SEEN SOME OF THE YAWNS, UH, AT THIS TABLE.
I'M JUST SURPRISED SOME OF YOU HAVEN'T FALLEN ASLEEP DURING THE MEETINGS.
BUT, UH, I, I KNOW WHAT GOES ON.
MOST OF YOUR CONS, CONSTITUENTS DON'T.
SO I JUST WANT TO THANK YOU ON BEHALF OF THOSE CONS, CONSTITUENTS, UH, AND LET YOU KNOW HOW MUCH I APPRECIATE IT.
AND THAT'S REALLY ALL I HAVE TO SAY.
WELL, DOUG, WE WANT TO, WE WANT TO THANK YOU BECAUSE YOU'RE, YOU'RE ALWAYS ON TOP OF THINGS, EVEN WHEN YOU'RE NOT HERE.
WE GET YOUR EMAILS THROUGHOUT THE YEAR, YOU KEEP US ON OUR TOES.
UH, I KNOW FROM MY OFFICE, SOMETIMES YOU'LL REACH OUT WITH, UH, AN AGENDA ITEM ON SOMETHING EVEN I MISSED.
AND IF IT WASN'T FOR YOUR, UH, DILIGENCE IN LOOKING THOROUGHLY THROUGH THE AGENDA, UM, I WOULDN'T BE ABLE TO BRING UP THOSE POINTS.
SO, UH, WE, WE VALUE YOUR INPUT.
WE UNDERSTAND YOUR BACKGROUND IN FINANCE, UH, ESPECIALLY AT THE MUNICIPAL LEVEL.
AND, UH, I KNOW FROM OUR OFFICE STANDPOINT, UH, WE THANK YOU FOR YOUR CONTINUED ENGAGEMENT.
NEXT PUBLIC SPEAKER IS TOMMY HOLSTEIN.
[00:25:01]
UH, I'M TOMMY HOLSTEIN WITH BAKER RIPLEY, AND I'M HERE TO SUPPORT THE NEWLY STATED SHORT TERM GOAL IN THE CONTROLLER'S BUDGET, WHICH IS, AND THIS IS WORDY, BUT TO SUPPORT THE NONPROFIT EFFORT TO INCREASE THE NUMBER OF HOUSTONIANS TAKING ADVANTAGE OF VOLUNTEER INCOME TAX PREPARATION, UM, AS THE LARGEST PROVIDER OF THE SERVICE IN HOUSTON THROUGH OUR NEIGHBORHOOD TAX CENTERS PROGRAM.WE, OF COURSE LOVE TO SEE IT, BUT FOR YOUR CONSIDERATION, IT JUST MAKES SENSE FOR THE CITY GOVERNMENT TO SUPPORT THIS ENDEAVOR.
SAFE, RELIABLE VITA PROGRAM, SAVE THE COST OF PAID TAX PREPARATION AND MAXIMIZE ACCESS TO TAX BREAKS LIKE THE EARNED INCOME TAX CREDIT.
FOR MANY FAMILIES, THEIR TAX REFUND IS THE LARGEST, UH, LUMP SUM PAYMENT THEY'LL RECEIVE IN A GIVEN YEAR.
THESE DOLLARS THEN FLOW INTO LOCAL BUSINESSES AND OUR ECONOMY GENERATING SALES TAX AND PROPERTY TAX REVENUES.
THIS YEAR WE COMPLETED 23,000 TAX RETURNS AT SITES IN NINE COUNCIL DISTRICTS.
MY APOLOGIES TO DISTRICT G AND DISTRICT C.
HOPEFULLY WE CAN GET TO YOU, UH, NEXT YEAR.
UM, BUT THIS GENERATED AN ECONOMIC IMPACT OF $35 MILLION IN NET REFUNDS AND PREPARATION FEES SAVED.
SO TO CONCLUDE, WE'RE HERE FOR THIS AND WELCOME THE OPPORTUNITY TO WORK WITH OUR LEADERS TO SUPPORT THIS GOAL.
THANK YOU, MR. HOLSTEIN, FOR BEING HERE AND FOR THOSE COMMENTS.
UH, COUNCIL MEMBER ALCORN, THANK YOU CHAIR, AND THANK YOU TOMMY HOLSTEIN FOR BEING HERE.
DOES THE CITY, UH, DOES THE CITY PAY FOR ANY OF THIS, THESE SERVICES CURRENTLY, ARE YOU UNDER CONTRACT WITH THE CITY TO PROVIDE THESE SERVICES? NOT, NOT VIA PAYMENT.
WE'RE IN, UM, SUNNYSIDE AND ACRES HOMES, WHICH I BELIEVE IS A FREE, UM, SPACE, WHICH WE LOVE.
AND, UM, WE ALSO THIS YEAR ADDED IN MOBILE SITES AT HARM CLARK AND, UM, ALE.
BUT FUNDING WISE, UM, NO, THE, OBVIOUSLY THERE'S A LOT OF AMPLIFICATION OF, YOU KNOW, GETTING THE WORD OUT, GETTING VOLUNTEERS, WHICH IS VITAL TOO.
AND IN OTHER CITIES, UM, WHERE SIMILAR SERVICES ARE PROVIDED BY NONPROFITS TO THOSE MUNICIPALITIES FUND THOSE EFFORTS IN, UH, IN TEXAS, SAN ANTONIO, AUSTIN, DALLAS, ALL, UM, DIRECTLY FUND.
AND THEN FORT WORTH HAS, IT'S ACTUALLY IN-HOUSE.
AND INTERESTINGLY, OUR PROGRAM USED TO BE, UH, A CITY PROGRAM, UM, BEFORE I THINK OH NINE WHEN WE TOOK IT ON.
SO THE CITY USED TO FUND THE, I THINK IT USED TO BE A CITY PROGRAM.
UM, AND, AND WHAT IS THE ANNUAL COST TO BAKER RIPLEY TO OPERATE? OURS IS ABOUT A MILLION 0.3.
UM, I THINK EACH YEAR AND THE, THE GENERAL FUNDING STREAMS IS THAT WE PULLED DOWN A, A FEDERAL VITA GRANT, WHICH OUR PROGRAM DIRECTORS IN THE THROES OF THAT, THE DEADLINES, UH, THIS WEEK.
SO SAME TIMELINE AS Y'ALL THAT, UH, SO THAT'S ABOUT $400,000.
UM, UNITED WAY FUNDING IS, UM, ALSO ABOUT $400,000.
AND THEN, UM, THIS PAST, UM, FEW YEARS, WE'VE ACTUALLY GOTTEN FUNDING FROM THE COUNTY THROUGH THE ARPA FUNDING.
AND SO THEY INITIALLY DID 500,000 IN 2021, UM, FOR LAST YEAR'S TAX SEASON.
AND THEN IN DECEMBER, THEY APPROVED A THREE YEAR, UM, FUNDING STREAM, WHICH IS ABOUT 800,000 THIS YEAR, 600 NEXT YEAR, 400 IN THE YEAR AFTER.
SO YOU'RE COVERED, THE 1.3 IS COVERED BY THE, WE'RE, I MEAN, WE'RE ALWAYS LOOKING FOR MORE.
OF COURSE, I THINK WITH THE, THE CLIFF OF THE COUNTY DOLLARS, UM, STEPPING DOWN IN THE COMING YEARS, THAT'S SOMETHING THAT WE'RE CERTAINLY LOOKING AT ABOUT HOW TO, YOU KNOW, RESOURCE THAT APPROPRIATELY.
THIS CONCLUDES OUR CONTROLLER'S OFFICE DEPARTMENT BUDGET WORKSHOP.
WE WILL NOW ADJOURN FOR FIVE MINUTES AND WE WILL BE BACK WITH THE MAYOR'S OFFICE.