TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
Transfer of appropriations within the City’s Fiscal Year (FY) 2025 General Fund Budget and the addition of four full-time equivalent (FTE) positions for the Enterprise Resource Planning software implementation.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance; Natural Environment Stewardship; Safe and Healthy Community; Safe, Reliable and Efficient Infrastructure; Strong and Diverse Economy; Welcoming and Livable Community.
end
SUMMARY:
summary
The Safety and Livability Bond, approved in 2022, included $17.6 million for replacement of outdated financial and accounting systems among other things. The request for proposal for a new enterprise software system has been issued. Before implementation of the citywide Enterprise Resource Planning (ERP) software begins in winter of 2025, four additional positions have been identified as necessary for the project. Existing staff do not have the capacity to assume this project without additional support. If these positions are approved and once hired, three of the positions would assume the work duties of tenured staff, creating capacity of those who have institutional knowledge to work on the project and make it a success. The other new position would support management and coordination of the project. Without these positions it is likely that the implementation timeline will increase and the project costs will expand.
A transfer from General Fund contingency of $410,380 will increase the budget of impacted departments and provide nine months of budget authority to hire for these new positions in FY 2025. Costs of these position directly related to the ERP implementation project will be reimbursed by the 2022 Safety and Livability Bond.
end
ISSUE:
Shall City Council adopt Resolution No. 2024-39 authorizing a transfer of $410,380 in appropriations within the City’s FY 2025 budget as well as adding four FTE for the Enterprise Resource Planning software implementation?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2024-39 authorizing a transfer of $410,380 in appropriations within the City’s FY 2025 budget as well as adding four FTE for the Enterprise Resource Planning software implementation.
body
FACTS AND FINDINGS:
General Fund Transfer of Budget Appropriations
FROM: Non Departmental, Continencies, 101-60961000-61110, $410,380
TO: Personnel Admin Services, Salaries & wages, 101-15101000-51010, $92,770
TO: Personnel Payroll Services, Salaries & wages, 101-15105000-51010, $86,930
TO: Finance, Salaries & wages, 101-20610000-51010, $103,380
TO: IT Operations, Salaries & wages, 101-59103515-51010, $127,300
After months of effort and cross-departmental staff collaboration, the City is currently accepting ERP software and implementation proposals. ERP software systems manage, track, and report on the day-to-day business activities of an organization often including functions like accounting, purchasing, budget, staff and project management, asset and inventory management, and payroll. To successfully complete a software implementation of this scope and size, a dedicated project team is needed. Four positions are currently included in the budget: three in Information Technology and one in Finance. With more information and research, it became clear that involvement of several more existing positions would be required. To create capacity for tenured staff to work on the implementation, this action would approve one additional full-time position for each of the following classifications: Human Resources Specialist, Payroll Specialist, and Accountant II. It would also add one Program Manager III to support management of the project. This budget action would allow positions to be hired in advance of the start of implementation. The amounts in this action reflect 9 months of each position’s cost. These new positions will be retained through the two to three year project implementation period.
BACKGROUND:
The ERP project is funded by the 2022 Safety and Livability Bond and has been underway since 2023. Phase one of the ERP project focused on analysis of existing practices, requirement gathering for a future system, process improvements, development of a request for proposal (RFP), and analysis of proposals. This phase is completed after a vendor is selected and a contract is executed.
Oregon State budget law allows the City Council to approve a transfer of appropriation from Contingency to another expense category within a fund when a specific need is identified.
Kali Leinenbach
Budget Manager
Attachments:
1. Resolution No. 2024-39