Tuesday Council Meeting: Audit of the City's payroll process confirms fraud risk if FUND$ replacement delayed
Our audit of the City's payroll process confirms the fraud risk inherent in the City's financial system software, FUND$, lending greater urgency to replacement of the City's aging IT infrastructure.
When President Clinton spoke of "crossing that bridge into the 21st Century" in 1996, he did not intend that we pack our antiquated systems into our Radio Flyers for the journey.
In Tuesday night's budget proposal, the City Manager proposes to accelerate funding for FUND$ replacement beyond the current Quarter-Century-Lay-Away Plan of $500,000 per year. However, even with the proposed increases the Budget Office projects an $8.7 million shortfall for FUND$ replacement. Accordingly, the Budget Office cautions that a one-time draw on the General Fund Reserve might be needed.
Summer spending could lead to Winter of Discontent, as tough decisions require City Council budget action Tuesday(Items 52b and 74)
The General Fund Reserve is designed for such critical, one-time expenditures; however, it is not intended to fund new or ongoing programs as might be proposed at Tuesday night's Council meeting. Ideally, the City's Reserve level should remain where it now resides, close to the 16.7% target level recommended by the Government Finance Officers Association. However, in Tuesday night's FY 2017 Proposed Budget Update the City Manager projects that its Reserve level will fall below 8% to its lowest level since the Great Recession by FY 2020, due to falling revenues projected in the next recession and rising legacy costs.
Council has committed to upholding its adopted fiscal policies, which will ensure that the City maintains a healthy Reserve. Important fiscal policies previously adopted by Council include:
infrastructure. 
