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It can also be argued that the surplus monies from the City's �.ic�nse Center (approximately $200,000 annually), which �s managecl by �'inance l7�partment Staff; ought to be includecl in the revenues shown in the tahle as well. Tn practice however, those monies are used to support other General Fund operations. If the I'inancelAccounting division is tasked wit� reducing. its bud�et hy $16,261 it would have to do so zn those areas #hat do NOT generate any progra�rr revenue. Otl�erwise, the City m�g�t fii�d it5elf unable Eo perform the tasks that generate tllose revenues, thereby inc�easing the City's btidg�t challenges further. As a result, �ve need to first toolc at identifying budg�t r�duetions in the follovving non-rer�enue areas: •:� Payroll o Purchase orders :• Accounts payable •3 Accounts receivable •i• Receptionist / casli receipts •3 General accounting 1 financial reporting ❖ Risk management ❖ Budgeting & capital planning However, as noted above, many of these functions are perfarrned as a requirement under federal or state lativ. The duties associated �ith the City's payro[l, accounts payable, ca5h r�c�ip�s, risl� management and accountiing and financial reporting furlctions are required by �a�� (and not surprising, are alsa required under generally accepted accountin� principles}, Th�r�fore, the onIy furrct�ons that remain truly discretioalary include: •:• Accounts receivable ❖ Purchase orders ❖ Receptianist ❖ Budgeting & c�apita� pIanning In total, th�se functions costi approximately $100,000 annually and entail approximately 1,560 hours af staff time. The budgeting and capital plat�ning function is performed by the City's �inance Director {a salaried indi�idual) and comprises 1,040 staff hours. This leaves 520 hours remaining for the other lisied functions wliich are perforrned by hourly employees. To acconZmodate $16,261 in budget cuts the Department must cut approximately 385 staffing hours from hourly errYployees, or 8 hours per week. Alternatively, the I�epartrnent cou�d through attrition downgrad� variaus positians in the department andlor look to reduce costs in non-personnel areas. However, non-personnel costs il� the �'inancelAccounting division only amoti�nt to $9,680 annually and vvould necessitate the complete elimination af al�; office supplies; phones and other office equipment, training and con�erences, and prafessional memberships. Therefore; it is impractical to �naice $16,261 in budget cuts �ithout reducing staff: Absent a valuntary reduction, tl7e elirr�ination of 385 staffing hours woiild require the forced reduction in hours involving one or inore current employees. Ho��ever; fhese employees would be entitled to unemployment payments far the lost wages which would reduce the budget savings by 60% in the �irst year. 3