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City of Mounds View Staff Report <br /> To: Chuck Whiting, City Administrator <br /> From: Bruce A. Kessel, Finance Director <br /> Item Title/Subject: Replacement of Payroll Technician <br /> Date of Report: October 27, 1999 <br /> I have obtained some information to assist in determining how to proceed with the duties <br /> performed by Kitty Hickok. <br /> 1. Payroll. For 1999, the City is averaging 90 checks per pay period. It has been suggested <br /> that the City should consider contracting out payroll. There are several issues that need to <br /> be looked at with payroll. The first is preparation of payroll checks. The City could <br /> contract out this function for approximately$1 per check; for 1999 this would cost <br /> approximately$2,400. There are various reports that we are required to prepare <br /> including annual reporting such as W-2's, State Retirement reports,workers <br /> compensation, etc. In addition, there are similar reports that are required on a bi-weekly, <br /> monthly or annual basis as well as withholding checks and reporting that is required. <br /> Such reporting would add to the cost of contracting out the service. Another issue is <br /> distribution of payroll costs. At the present time, payroll is allocated to 33 separate <br /> departments within the City. This information is presently entered into our payroll system <br /> as part of the process of preparing payroll and is then automatically transferred into the <br /> accounting system for reporting. If an outside entity prepared payroll,we would then <br /> need to reenter data to get it into our accounting and financial reporting system. We are <br /> required to report fiscal data to several state and federal agencies on a functional basis. <br /> Also, for management purposes functional reporting is necessary. As such, the need to <br /> enter such information by a functional basis would negate the savings from contracting <br /> out the payroll processing function. <br /> 2. Utility Billing. Utility billing is comprised of several functions including maintaining <br /> records for each property(meter)regarding the responsible party, obtaining meter <br /> readings, preparation of bills, collection of payments, notices of delinquent accounts, and <br /> shutting off utilities for non-payment. It has been suggested that it may be possible to <br /> contract out utility billing. In order to do this, it would require one party to perform all of <br /> these tasks or an outside party and the City to share the same system. If it was an outside <br /> party, the City would almost have to require the party to have a local location due to the <br /> need to have contact with the property owners in Mounds View. It would also require a <br /> very close working relationship with public works and finance since manual meter <br /> readings, meter changes, work orders, shut offs, etc. are preformed by public works <br /> personnel and payments/NSF's would in all likelihood be coming through a City bank <br /> account. The utility billing system is also integrated into the City's accounting system. If <br /> the service was contracted out, we would need to receive information that would then <br /> need to be reentered into our accounting system. <br /> 3. Fixed Asset accounting. The City is required to keep track of its property, plant and <br />