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Transmittal - 12/13/2021 MARY BETH THOMPSON Chief Financial Officer ERIN MENDENHALL Mayor DEPARTMENT OF FINANCE 451 SOUTH STATE STREET, ROOM 245 SALT LAKE CITY, UTAH 84114 TEL 801-535-6403 CITY COUNCIL TRANSMITTAL ________________________ Date Received: ___________________ Lisa Shaffer, Chief Administrative Officer Date sent to Council: ______________ _____________________________________________________________________________ TO: Salt Lake City Council DATE: December 13, 2021 Amy Fowler, Chair FROM: Mary Beth Thompson, Chief Financial Officer___________________________________ SUBJECT: Chart of Accounts Update STAFF CONTACT: Mary Beth Thompson Chief Finance Officer Marybeth.thompson@slcgov.com DOCUMENT TYPE: Informational Item RECOMMENDATION: None BUDGET IMPACT: None BACKGROUND/DISCUSSION: The Workday ERP project is not just about implementing new Finance and HR software but also improving how Salt Lake City does business. That is why the City was deliberate in examining its current finance, human resources and payroll business processes to consider needed improvements to meet best practices. It is also why the City has contracted with the Government Finance Officers Association (GFOA) to revise the current Chart of Accounts. The Chart of Accounts is the collection of cost centers and object codes staff uses to track expenses. This is a critical component for the Workday ERP project because the Chart of Accounts serves as the foundation for the financial system and all financial transactions. A revised Chart of Accounts can not only better track city expenses, it also helps budgeting and increased public transparency, all goals of the Workday ERP project. The Chart of Accounts revisions are not only critical to the Workday ERP project but are also vital as the City moves into program and priority based budgeting. A revised Chart of Accounts will allow staff to easily report out on leadership priorities with a cleaner, simpler structure. Lisa Shaffer (Dec 15, 2021 15:29 MST)12/15/2021 12/15/2021 Chart of Accounts Update Transmittal to City Council December 13, 2021 Page 2 of 3 Chart of Accounts The City is updating its business processes, policies, and procedures in accordance with industry standards, along with the Workday ERP software implementation. GFOA has been contracted to support the modernization and development of improved and consistent financial and human capital management policies and procedures. A core team of City finance staff and program managers have been meeting with GFOA since August to review different aspects of the current Chart of Accounts. So far the team has met with every department and is now reviewing different fund classes with department finance managers. During these meetings the GFOA representative, Rob Roque, learns the City’s current structure and can share best practices for the future structure. It is important that the new Chart of Accounts works for every department and finance activity. It is also important that the new Chart of Accounts follows best practices to ease time and confusion. The City team and GFOA are developing Chart of Account concepts and a base structure that will be refined during the Workday design process that begins later this month. Workday – ERP Software Salt Lake City has chosen Workday as its Enterprise Resource Planning (ERP) software vendor. Workday will replace most of the City’s financial and human capital management systems, including OneSolution, iCIMS, Kronos, CAMP, and more. Workday is being implemented in two phases. The first phase focuses on HR and officially started in August 2021; “go live” for HR is planned for July 1, 2022. The second phase will focus on Finance and Payroll which will begin in February 2022 with a “go live” tentatively scheduled for January 1, 2023. For the Workday implementation to be successful, all employees need to be comfortable using the new system in whatever role they fill. Workday training has been fully funded and will be provided to all staff as the system is rolled out. Part of the Workday ERP project is to create a common definition guide of financial terms commonly used within the City. Two terms that will become a key part of the City’s lexicon moving forward will be Program and Project. As existing efforts are assessed or possible new efforts are reviewed, it will need to be determined if they are one of the two options: Program or Project. The current draft definitions are:  Program - Activities, operations, or organizational units directed to the attainment of specific purposes or objectives. Example: Homelessness Services, YouthCity After School Program, Water Conservation Program. Each program should have a service outcome (result produced).  Typically, programs are ongoing and not limited to a specific organizational unit. Programs help to create transparency by showing what you do and what it costs, start discussions on trade-offs when budgeting, provide comparisons, plan for changes in the workforce, and clarify the context of performance and metrics. Programs are action-oriented, they are not a department, division, line item, cost center or task.  Project - A temporary endeavor undertaken to create a unique product, service or result. A project is temporary in that it has a defined beginning and end in time. Projects are often used to track activities with defined start and end dates or other events that would require additional detail beyond the chart of accounts.  Project costs would be summarized in this segment but broken out in more detail in the project ledger.  This allows for detailed tracking department by department. Chart of Accounts Update Transmittal to City Council December 13, 2021 Page 3 of 3 Program and Priority Based Budgeting Program based budgeting is a form of budgeting where budgetary information is organized around the City’s programs and services. It shows the cost of a program, the revenue the program may generate, and performance metrics to evaluate the program’s effectiveness. Organizing the information in this way, rather than at the department and division level, provides a clearer picture of how much money is being spent on each program, the services that program delivers to Salt Lake City constituents, and how well the program is performing. Program Based Budgeting also allows staff to better track how the City is meeting Mayor and City Council priorities and goals. The new Chart of Accounts helps in the effort of modernizing the City’s budget process. Having common cost centers, reduction of fund classes will allow staff to better report spending. The new structure will also include program and project tags. If a program includes multiple departments or projects, program costs can easily be reported. The City is currently exploring priority based budgeting in relation to program based budgeting. Priority based budgeting focuses resources into programs based upon community impact assessments and engagements. Currently the City is working with a consultant, Resource X, to help it establish the framework for priority based budgeting. An additional briefing specific to this effort may be requested. To support this priority based budgeting framework, Salt Lake City commissioned Y2 Analytics to conduct a survey of Salt Lake City residents to identify their budget priorities. The survey was in follow up to the 2021 spring resident survey and based questions on the Mayor’s 2021 Plan. Some key takeaways from the survey are:  Quality of life remains stable with slight improvement in perceived value of tax dollar spending.  Of the three broad goal areas in the City’s budget plan, environment and sustainability is seen as the most important among respondents.  Regarding growth and development projects, respondents say providing services and recreation is most important and needs the most focus.  Water and air quality are top of mind for residents in thinking about environment and sustainability projects.  General access to housing and helping the unhoused are top concerns for people regarding community/neighborhood goals. Many municipalities that use priority based budgeting include a public engagement element to their budgeting process. Using Y2 Analytics allowed the City to know it identified budget priorities from a true representation of Salt Lake City residents. Notes:  Mary Beth Thompson and Rob Roque with GFOA plan on being at the table at the work session.  Attachments – Fall 2021 Budget Survey Report, Workday ERP Implementation Timeline OFFICIAL FALL 2021 SALT LAKE CITY RESIDENT BUDGETARY PRIORITIES SURVEY BUDGET SURVEYSALT LAKE CITY SURVEY OBJECTIVES RESEARCH GOALS §Track health of the City and quality of life metrics §Evaluate resident perceptions with regards to the following budget areas: §Growth and Development §Environment and Sustainability §Neighborhoods and Communities §Identify specific initiatives and projects with resident support §Analyze specific trends and attitudes with respect to various demographic factors such as §Men vs. Women §Whites vs. BIPOC (Black/Indigenous/People of Color) §Income levels §Time lived in Salt Lake City §652 residents within the boundaries of Salt Lake City participated in this survey §Data have been weighted to reflect population statistics from the U.S. Census’ American Community Survey to ensure that the sample is representative of the City as a whole, specifically regarding age, city council district, race, gender, and home ownership. §Margin of error +-3.8 percentage points SURVEY METHODOLOGY SAMPLING, MODE, & MARGIN OF ERROR The raw frequencies and geographical distribution of our sample with regards to Salt Lake City Council District are shown below. While certain City Council Districts appear to be overrepresented in the sample, the responses were weighted to reflect observed proportions of district residence in the publicly-available Utah Voter File. N size Weighted Sample % Census Estimate % 47 10%10% 37 7 9 135 17 17 90 16 17 117 17 15 110 17 16 114 15 16 51.Quality of life remains stable with slight improvement in perceived value of tax dollar spending. When comparing quality of life benchmarks over time, key metrics have remained relatively stable, with an average quality of life score of 75 out of 100. However, residents’ perceived value for tax dollar spending increased slightly since April, indicating a positive trajectory for budget planning. 2.Of the three broad goal areas in the City’s budget plan, environment and sustainability is seen as the most important among respondents. Compared to other broad goal areas such as Growth and Community, Environment stands out as both the most important to quality of life and in most need of the most improvement from the City. 3.Regarding growth and development projects, respondents say providing services and recreation is most important and needs the most focus. An overwhelming majority of residents (75%) consider supporting small businesses to be a high priority project initiative. Residents also support projects that involve services and recreation such as creating arts programs for youth and developing trails and trailheads. 4.Water and air quality are top of mind for residents in thinking about environment and sustainability projects. The vast majority of residents, around 75%, consider projects involving air quality and water conservation to be high priorities. While air and water rise to the top of the list in terms of priority, residents express majority support for most sustainability-related initiatives proposed by the City. 5.General access to housing and helping the unhoused are top concerns for people regarding community/neighborhood goals. While housing affordability is rated as the most important to quality of life, homelessness is considered most in need of improvement. When considering specific project initiatives, preventing homelessness and connecting the unhoused to shelters and resources are consistently ranked as high priorities. 5 KEY FINDINGS TO REMEMBER CITY HEALTH & PRIORITIES OVERALL QUALITY OF LIFE AROUND 75/100 Respondents in Districts 6 and 7 rated their quality of life the highest (80.2 and 76.8, respectively), while individuals in District 5 reported their quality of life as the lowest, right around 70. The average quality of life for the City overall was just under 75. Overall Average: 74.6 Average: 73.1 Average: 73.0 Average: 74.6 Average: 73.2 Average: 69.9 Average: 80.2 Average: 76.8 Q: All things considered, on a scale from 0 to 100, with 0 being very low and 100 being very high, how would you rate your overall quality of life in Salt Lake City? (n = 651) MOST RESIDENTS GETTING GOOD VALUE FOR TAX DOLLAR The majority of residents (64%) feel like they are getting at least a good value of service for their tax dollar. Only a small percentage (6%) feel as though they are getting poor service. The percentage of residents who say they are getting a “good” or “excellent” value for their tax dollar is up 7 points since April of this year. Value for City tax dollar Year Excellent + Good 2015:66% 2017:70% 2019:60% 2021 (Spr.):57% 2021 (Fall):64% Excellent Good Fair Poor 64% Total Excellent + Good + 7 points since Spring 2021 Q: In general, how do you rate the service you receive from Salt Lake City for your tax dollar? (n = 651) WASTE CLEANUP & GREEN SPACE IMPORTANT SERVICES When asked to describe the city services that have the greatest impact on their quality of life, residents have positive things to say about the City’s efforts to conduct waste cleanup, develop green space, and maintain good road conditions (among other services). Areas in which residents express the greatest frustration crime, road safety and the City’s approach to dealing with homelessness. “Green space designation/maintenance/development, city planning and urban development, governance over social spaces, sanitation and public health, road maintenance.” “Basic services… have the greatest impact, [such as] composting (sic), recycling and garbage. Quality of water and service is excellent. Road maintenance is also great. Appreciate the new curbs and sidewalks in our neighborhood. We also use the foothills almost daily.” “Control of the homeless population, crime prevention, traffic, air quality, noise and light pollution, parking.” “I am grateful for the high quality of schools, libraries, parks, fire departments, public health, and law enforcement services!” “Crime prevention is of course the utmost importance, from policing on the streets and through out the community to the prosecution of those crimes which have been committed.” *Word cloud only contains words repeated 5 or more times Q: Thinking generally about the responsibilities of city government, what things does the City do that impact you, personally, the most? Please briefly describe your thoughts about the services or amenities that have the greatest impact on your overall quality of life in Salt Lake City. (n = 612) ENVIRONMENT MOST IMPORTANT TO QUALITY OF LIFE When comparing broad city priority areas, a plurality of respondents (42%) said that environment was the “most important” to their quality of life. Growth was broadly seen as the least important priority area. Community was considered roughly equally important and unimportant by respondents. 17 -18 2 Net score Q: Of the following city priorities, which is the most important to your quality of life? Which is the least? (n = 651) Q: Of the following broad city priorities, which do you think the city needs to improve most? Which do you think the city does best? (n = 651) 17 -18 2 Net score MOST/LEAST important to quality of life Net score6 3 -9 City does BEST /Needs MOST improvement CITY INFRASTRUCTURE MOST PRIORITIZED City infrastructure, homeless services, and public safety were the top goals/priorities for respondents, with these areas receiving the most allocated” funds. Digital accessibility, economic development, and equity and inclusion were the least prioritized areas. $16 $14 $14 $15 $7 $9 $6 $5 $5 $4 $2 $3 Average $ amount allocated % of people who allocated >$0 Q: Imagine you were managing $100 from the Salt Lake City budget. If you could distribute that $100 toward any of the following potential goal areas or priorities, how would you divide your $100? (n = 651) GROWTH & DEVELOPMENT SERVICES & RECREATION MOST IMPORTANT TO GROWTH When asked about various growth initiatives, residents said that providing services and recreation was both most important to their quality of life and needed the most improvement from the city. The initiatives supporting economic development and emphasizing arts and culture were seen as both less important to them and less in need of attention from the city. Q: Of the following aspects of growth and development, which is the most important to your quality of life? Which is the least important? (n = 568) Q: Of the following aspects of growth and development, which do you think the city needs to improve most? Which do you think the city does best? (n = 564) MOST/LEAST important to quality of life 41 -18 -23 20 -14 -6 Net score Net score City does BEST/Needs MOST improvement SUPPORTING SMALL BUSINESS HIGH PRIORITY FOR RESIDENTS When asked about relative priorities regarding growth and development in Salt Lake City, 3 in 4 respondents said helping small businesses is a high priority. Other popular projects had only narrow majority enthusiasm, such as developing and supporting arts programs; developing trails; helping cultivate community pride; and increasing opportunities for participation in arts, culture, and recreation. Q: Below is a list of potential projects related to growth and development in Salt Lake City. For each project below, please indicate whether you think this should be a high priority, or a lower priority as the City works to expand culture and commercial opportunities for all residents. (n = 563)) Category: Economic Growth Arts and Culture Services and Recreation Innovation % Who say project is a high priority (top 10 initiatives) GROWTH PRIORITIES DIFFER BY DEMOGRAPHIC GROUP There are some noticeable differences in development project priorities across different demographic groups. Q: Below is a list of potential projects related to growth and development in Salt Lake City. For each project below, please indicate whether you think this should be a high priority, or a lower priority as the City works to expand culture and commercial opportunities for all residents. (n = 563)) •Women are more likely than men on average to rate all projects asked about as high priorities across the board •73% of women think art programs for youth is a high priority, compared to only 53% of men •71% of women think community pride is a high priority, compared to only 53% of men •65% of white respondents think developing trails and trailheads is a high priority, compared to 56% of BIPOC •64% of BIPOC say developing infrastructure for online learning is a high priority, compared to only 49% of white residents •71% of respondents making less than $75,000/year say art programs for youth is a high priority, compared with 59% of those making between $75,000 and $150,000, and only 47% of those making $150,000 or more •Only 49% of long-time residents (20 years or more)say developing trails is a high priority, compared with around 70% of the rest of the respondents •Similarly, only 38% of long-time residents say making Library Square a civic and cultural hub is a high priority, whereas about 60% of all other residents say the same RESIDENTS SEEK TO BUILD COMMUNITY & CONNECT THE CITY Only about 70% of respondents had suggestions beyond the projects already proposed by the City. Among those respondents, the most common issues mentioned included building permitting, cultural events, city walkability, and further development of arts and culture events in the city. Q: Are there other aspects of growth and development in Salt Lake City that you think the City should focus on to expand culture and commercial opportunities for all residents? (n = 509) “City-sponsored community events like cleanups.” “The city could do more to make the city more walk-able and bike- friendly.” “Make cultural events more affordable. Most things are not feasible for my family “I am not in favor of expanding growth and development within the city. More development results in more congestion and more pollution.” “Infrastructure for roads and transportation should be a focus as we grow.” ENVIRONMENT & SUSTAINABILITY AIR, WATER QUALITY AFFECT MAJORITY OF RESPONDENTS When asked about various environment and sustainability measures, a majority of residents said the most important aspect is air quality and efficiency, which is also considered to be the most improvement by the city. Water conservation was also seen as important and in need of improvement. Sustainable infrastructure, emergency preparedness, and re-using and recycling opportunities were seen as far less important. MOST/LEAST important to quality of life City does BEST/Needs MOST improvement 49 23 -11 -25 -35 48 15 -10 -23 -29 Q: Of the following aspects of the environment and sustainability, which is the most important to your quality of life? Which is the least important? (n = 578) Q: Of the following aspects of the environment and sustainability, which do you think the city needs to improve most? Which do you think the city does best? (n = 575) Net score Net score RESIDENTS FAVOR WATER AND AIR INITIATIVES When asked about environment and sustainability priorities, 3 in 4 respondents said that protecting water and air and implementing water conservation programs was a high priority. In fact, of the top 5 priorities selected by respondents, 4 of them had to do with water and air. Relatively speaking, most infrastructure and emergency preparedness initiatives were seen as low priorities by a majority of respondents more generally. Q: Below is a list of potential projects related to the environment and sustainability in Salt Lake City. For each project below, please indicate whether you think this should be a high priority, or a lower priority as the City works to protect our natural resources, advance development, and address climate change. (n = 574) Category: Infrastructure Water Air and Energy Re-use and Recycling Emergency Preparedness % Who say project is a high priority (top 10 initiatives) ENVIRONMENT PRIORITIES DIFFER BY DEMOGRAPHIC GROUP There are some noticeable differences in environment project priorities across different demographic groups. Q: Below is a list of potential projects related to the environment and sustainability in Salt Lake City. For each project below, please indicate whether you think this should be a high priority, or a lower priority as the City works to protect our natural resources, advance development, and address climate change. (n = 574) •Women and men are about equally likely to see the various environment projects as high priorities. •80% of women think enforcing commercial waste ordinances is a high priority, compared to 69% of men •74% of women think resilience to extreme weather events is a high priority, compared to 65% of men •White respondents are more likely to see water conservation and enforcing commercial waste ordinances as priorities (91% and 77%) than BIPOC (79% and 66%) •77% of BIPOC respondents say improving resilience to extreme weather events is a high priority, compared to only 66% of white residents •Both lower-and higher- income respondents were more likely to say renewable energy incentives for new buildings is a high priority (76% and 84%) than middle-income respondents (66%) •83% of those making less than $75,000 call enforcing commercial waste ordinances a high priority, compared with 65-70% of those who make more •Only 73% of recent move-ins (5 years or less) say water conservation is a high priority, compared to about 90% of all other residents •Only 55% of recent move-ins say improving resilience to extreme weather events is a high priority, compared to around 70 to 75% of all other residents XERISCAPING, RENEWABLE ENERGY ADDITIONAL CONCERNS Only about 72% of respondents had suggestions beyond the projects already proposed by the City. Among those respondents, the most common issues mentioned were water conservation, air quality, electric vehicle incentives, xeriscaping, and renewable energy alternatives. Q: Are there other aspects of environment and sustainability policy in Salt Lake City that you think the City should focus on to protect our natural resources, advance development, and address climate change? (n = 525) “Decreasing food waste.” “I think water conservation is very important and the worst waste of water is landscaping.” “Electric vehicle [incentives].” “Offer to help citizens that want to add solar and/or other environmentally impactful upgrades to their homes.” “Air quality and water conservation are the very most important things the city needs to work on.” “Options for xeriscaping” NEIGHBORHOODS & COMMUNITIES HOUSING & HOMELESSNESS NEED IMPROVEMENT When asked about the relative importances of community and neighborhood development areas, housing affordability, public safety, and homelessness were selected as most important to peoples’ quality of life. While housing affordability was likewise identified as an area where the city needs to improve, homelessness has the highest net score, indicating that residents widely agree that the city needs to improve in this area. MOST/LEAST important to quality of life 29 11 19 -10 -7 -19 -23 Q: Of the following aspects of neighborhood and community development, which is the most important to your quality of life? Which is the least important? (n = 583) Q: Of the following aspects of neighborhood and community development, which do you think the city needs to improve most? Which do you think the city does best? (n = 583) 29 -13 41 -16 -13 -13 -14 Net score Net score City does BEST/Needs MOST improvement RESIDENTS FAVOR INITIATIVES THAT TACKLE HOMELESSNESS Of all neighborhood and community initiatives posed to our survey sample, preventing homelessness among low-income families was most-often selected as a high priority. Projects that deal with homelessness are the top two priority projects selected. Thereafter, respondents also expressed concern about increasing affordable housing, investing in neighborhoods with high incidence of crime, and effective use of abandoned properties. Q: Below is a list of potential projects related to communities and neighborhoods in Salt Lake City. For each project below, please indicate whether you think this should be a high priority, or a lower priority as the City works toward safe, affordable, and equitable neighborhoods. (n = 571) Category: Homelessness Housing Public safety % Who say project is a high priority (top 10 initiatives) DIFFERENT COMMUNITY PRIORITIES FOR DIFFERENT GROUPS There are some noticeable differences in community project priorities across different demographic groups. Q: Below is a list of potential projects related to communities and neighborhoods in Salt Lake City. For each project below, please indicate whether you think this should be a high priority, or a lower priority as the City works toward safe, affordable, and equitable neighborhoods.. (n = 571) •Women are more likely than men on average to rate all projects asked about as high priorities across the board •81% of women think providing better continuity in healthcare for at risk individuals is a high priority, compared to 71% of men •White respondents are more likely to see connecting the unhoused with services and shelter as a priority (92%) than BIPOC (81%) •BIPOC are slightly more likely to see transitioning abandoned properties for community use and providing better healthcare continuity for at risk individuals as high priorities (84% and 80%) than whites (80% and 76%) •Lower-income respondents (less than $75,000) are more likely to see increasing access to safe, quality housing, replacing affordable housing units, and developing a rotating winter shelter program as high priorities (92%, 83%, and 81%) than higher- income earners (about 82%, 72%, and 70%) •About 93% of recent move-ins (less than 5 years) say transitioning abandoned properties for community use is a high priority, compared to about 78% of all other residents HOUSING, HOMELESSNESS, & POLICING AMONG TOP CONCERNS Only about 71% of respondents had suggestions beyond the projects already mentioned. Among those respondents, the broad issues of mental health/social resources, developing neighborhood-level civil society institutions, and zoning ordinances were top of mind for many respondents. Q: Are there other aspects of neighborhood and community development in Salt Lake City that you think the City should focus on to create safe, affordable, and equitable neighborhoods? (n = 516) “More LGBT outreach programs for youth.” “Reduce homeless camping and increase police presence at public places and parks.” “Encourage civil interactions through neighborhood councils to prioritize needs in neighborhoods.” “Work on homelessness by addressing root causes.” “Affordability is key. …luxury apartments being built at the detriment to neighborhoods. Low income families are being forced out.”“Mental health services.” Kyrene Gibb, Scott Riding, & Kelly Patterson, Ph.D. y2analytics.com | (801) 406-7877 SAMPLE COMPOSITION DEMOGRAPHIC DISTRIBUTIONS Male 47% Female 46% Gender Race Age Range No 50%Yes 50% LGBTQIA+ No 76% Yes 17% N = 549 N = 548N = 548 N = 549 Non-binary 2% Prefer not to say 5 Census Estimate Men 51% Women 49 Census Estimate White 65% Hispanic 22 Asian 5 Black 3 Pacific Islander 1.6 Native American 1.5 Other 13 Census Estimate 18-34 43% 35-44 18% 45-54 13% 55-64 13% 65+14% DEMOGRAPHIC DISTRIBUTIONS CONT. Time lived in SLC Marital Status No 50%Yes 50% Number of Children N = 549 N = 549N = 549 Religion N = 549 DEMOGRAPHIC DISTRIBUTIONS CONT. Rent/ other 46% Own 54% Household Type Educational Attainment Employment No 50%Yes 50% Income N = 549 N = 549N = 544 N = 549 Census Estimate Own 48% Rent/other 52 Signature: Email:Garrett.Danielson@slcgov.com