The Christiansburg Finance Committee met today, attended by the Town Manager, legal counsel, and council's committee members Ann Carter and Mike Barber. A firm which has long performed the town's annual audit was represented by Shane Lavender.
The committee began by reviewing where town council was now, in regards to suggestions included in the last two audits. Council appoints the Town Treasurer, who has an Assistant Town Treasurer and a staff of approximately 10 full time employees. Current functions include accounts payable, payroll, tax collections, business and vehicle licensure, utility billing and customer service.
Consideration of adding a Financial Director role, separate from or as a combined Town Treasurer/Financial Director position, would include shifting preparation of the annual budget from the Town Manager's accountabilities. This would require a change to the Town Charter, which is "not seen as a significant issue" per the committee. Other functions could include purchasing/procurement, financial analysis (forecasting), debt issuance oversight and preparation of trial balance and financial statements. The last two are items are currently done annually by the auditors, increasing overall audit costs.
Discussions focused on how the title of a new position was not as important as job accountabilities and qualifications. The committee reviewed several advertisements for similar positions in other localities, noting the importance of comparing the overall budget size (ie, managing a $100 million budget was perceived as being more complex than for a $30 million budget).
Presuming the town council would concur with the committee's recommendation to expand the treasurer's role to include finance director accountabilities, related qualifications could be expected to include municipal finance, analysis and budget experience, financial planning, preparation of financial statements, knowledge of GAAP and GASB, and GASB 34 which details basic financial statement requirements for state and local governments. Additional abilities would include excellent communication or interpersonal skills and customer service orientation. Mr. Lavender also encouraged 6 to 9 years of experience, indicating a desirability of CPA status. The committee also talked about professional certifications as being given preference. Anticipated salary could range from $65-$75K, yet it was noted a strong candidate pool could be expected due to current employment conditions. Council members were told they would have someone they could go to, point to a departmental budget and specific allocation and ask "How are we doing here?" and get an informed response. Today, that comes by the Town Manager opening his desk drawer and pulling out the answers. The budget currently is just "a humongous" spreadsheet maintained by the Assistant Town Manager.
The Town Manager noted that a future treasurer (or town manager) would not have the same jobs as the incumbents, who both have long tenure and absorbed more accountabilities along with the town's growth. Further, he suggested the committee recommend to council consideration for adding another staff position. He will discuss work volume and specialization with the treasurer to determine need for including this in the recommendation to council. If that path were chosen, it was perceived the new Treasurer/Finance Director and Town Manager would work jointly to hire that staff position. It was stressed that the discussion encompassed both transitioning new duties and new hires, in a department which already has very lean staffing. The Town Manager indicated he would begin working on the new fiscal year's budget in mid-March, and would include this salary in what was presented to council for consideration.
This is notable because the incumbent treasurer is expected to retire Sept. 1. This gives a short timeline for presenting the recommendation to the full town council for consideration and possible approval, placing advertising for the job opportunity, fully developing the job description, screening and interviewing candidates, and negotiations and hiring. An ideal scenario, should council determine to proceed, would be to have the hire in place no later than July 1, allowing a full two months working along side the incumbent. Budget preparation responsibilities would not be assumed until the 2010-2011 fiscal cycle.
The Town Manager was directed by the committee to have Human Resources work on a draft employment opportunity ad and potential placements, and draft job descriptions. Council members checked with the attorney as regards their continuing to discuss the subject outside of the committee meeting with staff or individually with other council members. It was noted committee meeting minutes would also be provided to all council members. No additional Finance Committee meetings were scheduled, so the public should expect this will transfer as a future council agenda item.