CITY OF MADISON 2017 OPERATING BUDGET Agency Request

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1 CITY OF MADISON 2017 OPERATING BUDGET Agency Request Agency 21 - TREASURER Budget by Service 2016 Budget 2017 Request Change sum 211 TREASURER 515, ,916 14,712 1,059,832 TOTAL 515, ,916 14,712 1,059,832 Budget by Fund & Major Fund: General Budget 2017 Request Change 42 - INTE INTERGOV REVENUES (10,000) (10,000) - (20,000) 43 - CHA CHARGES FOR SERVICES (1,000) (1,000) - (2,000) 51 - SALA SALARIES 188, ,060 1, , BEN BENEFITS 50,607 63,696 13, , SUPP SUPPLIES 123, , , PUR PURCHASED SERVICES 234, ,388 (49,070) 370, INTE INTER DEPART CHARGES 1,111 1,111-2, INTE INTER DEPART BILLING (72,259) (23,189) 49,070 (46,378) TOTAL 515, ,916 14,712 1,059,832 Position Summary by FTE Budget 2017 Request Change ACCT CLEACCT CLERK ADMIN AADMIN ASST (2.00) 2 CITY TRE CITY TREASURER CLERK CLERK FIN OPERFIN OPER LDWKR TOTAL (0.00) 12

Office of the City Dave Gawenda, City City-County Building, Room 107 210 Martin Luther King, Jr. Boulevard Madison, Wisconsin 53703 Phone: (608) 266-4771 Fax: (608) 266-4128 treasurer@cityofmadison.

2 Office of the City Dave Gawenda, City City-County Building, Room Martin Luther King, Jr. Boulevard Madison, Wisconsin Phone: (608) Fax: (608) August 6, 2016 To: David Schmiedicke, Finance Director From: David Gawenda, City 2017 City Budget Transmittal Memo The City s Office has been working on a number of major projects for the last two years. The goal for 2017 is to make further progress on these projects. Specifically, we will be working on the following: Calendar year 2017 will be the third year of collecting property tax using four installments. The new system replaced a method that had been in place for decades. As such, the process of acclimating the taxpayer to four installments is one that I anticipate taking a number of years. The major changes have been implemented, but 2017 will see further enhancements that will aid the taxpayer in avoiding delinquency. We plan to implement changes to our website that will allow taxpayers to set up reminders and alerts that will help him avoid key due dates. In addition, for those taxpayers that do become delinquent, our goal will be to have that delinquency cured before the tax roll is handed off to the county in August. The office has been working on implementing Electronic Bill Presentment and Payment (EBPP) since mid We are near full implementation for property tax, so 2017 will see the initiative move to the Municipal Services Bill. The advantages of EBPP include reduced printing and mailing costs, increased use of electronic payments (which represent less labor), and an enhanced customer experience. Each month the treasurer s office processes over 60,000 municipal services bill payments, so we have the potential to capture significant efficiencies. Finally, as the manager of the city s reserve funds, the treasurer will be shifting the orientation of the city s investments to accommodate 2017 s demands. In addition, we will be attempting to structure the portfolio in a way that decreases our exposure to mark to market adjustments. Ideally, this can be done while still meet the budget goals for interest income. Our savings proposal has two components. The first requires us to investigate whether the convenience fee model can be applied to more payment types. As we moved to that model for parking tickets, we saw a drop in the city s costs for credit card processing. Although other payment types don t have the volume of parking tickets, we can explore whether additional savings is possible. The second part of our proposal would provide a mechanism for changing the behavior of some of our customers. We have noticed a growing number of payments being made without being accompanied by the bill stub that was given to the customer. Such payments cause considerable additional time to process as accounts have be located and stubs recreated. Our proposal would charge customers a $1 counter fee when a payment is made without the bill stub. It is unlikely that this fee will produce much revenue, but it may produce the beneficial result of incentivizing customers to remember to send their bill stub with their payment. 8/6/2016- Transmittal Memo.doc

3 2017 Operating Budget: Service Proposals SERVICE IDENTIFYING INFORMATION SELECT YOUR AGENCY: SELECT YOUR AGENCY'S SERVICE: SERVICE DESCRIPTION: This service processes over one million payments per year. The office continues to see more payments through electronic payment channels. These new channels require development of new processes and procedures. At the same time, it is necessary to maintain service levels in traditional channels as the migration to electronic channels is gradual. Investment returns on city reserves continue to reflect the extraordinary low interest rates that have now been common for over eight years. The continues to emphasize safety, rather than absorbing higher risk. SERVICE GOALS Who is the primary customer for the service? Our primary customer is the general public; our secondary customers are the various city agencies that rely on our services. What are the services goals for 2017? 1) To enhance the ability of the taxpayer to avoid delinquncy, while at the same time maximizing the collection of delinquent taxes by July 31st; 2) To convert the Madison Municipal Services Bill to the Electronic Bill Presentment and Payment (EBPP) model; and 3) to meet or exceed the budget goal for interest earnings, while minimizing the end of the year adjustment for "mark to market." How will achieving these goals improve the customer s experience? The first two goals above allow the customer to customize the experience of being billed and paying in a way that accommodates their personal preferences. The final goal will take some pressure off the tax levy to the extent more interest income is realized. What major initiatives are planned within the service for 2017? The major initiative is the continued development and expansion of EBPP.

4 2017 Operating Budget: Savings Scenarios SELECT YOUR AGENCY: Option 1: Efficiency Investment Option 2: Flat Reduction Provide a 2.5% reduction plan that does not include the abolishment of any currently filled positions within your budget. Reduction by Major 51: Salaries 52: Fringe 53: Supplies 54: Purchased Services Reduction Amount $13, How will the 2.5% reduction be achieved? This savings proposal is made up of two parts. The first part of the proposal has the treasurer's office convert more credit card payments made to the city to a convenience fee model. Under this proposal, we identify more payment types where the city is currently absorbing the cost of accepting the cc transaction and work with our vendor to have the vendor charge the customer a fee sufficent to pay the transaction costs, allowing the city to no longer pay these costs. The second part of the proposal would charge customers a "counter fee" of $1 when the customer appears at our counter without the bill, requiring us to look up the account, print a new bill, enter the transaction into the cashiering system, and receipt the payment. The one dollar charge closely reflects the additional time spent in servicng the customer for this type of transaction. This charge would also apply to banks that send multiple payments to us in a single envelope with no bill accompanying the payment. What s the service delivery implication of the proposed reduction? The convenience fee model will result in customers who use a credit card paying more. The counter charge would also result in increased costs to the customer, although our preference is that, instead, we see a reduction in the number of payments we get unaccompanied by the bill.

5 How will the agency seek to maintain the current level of service at the reduced funding level? Service levels shouldn't be effected, because the cost of the additional service currently being provided will be passed on to the customer.

Treasurer Function: Administration

Treasurer Function: Administration Agency Overview 21 Agency Mission The mission of the City Treasurer's Office is to receipt, safeguard and invest all City revenues and to maintain tax assessment/payment records. Agency Overview The Agency