Title
Discussion regarding a proposal for Financial Services to be included in the Agreement between the Pflugerville Community Development Corporation, and the City of Pflugerville.
Summary
The PCDC and the City of Pflugerville annually review a partnership agreement for administrative and professional services needed by the corporation. It is an ongoing agreement and only requires approval for revisions.
The following information was provided by the City during the February 13th Regular Meeting:
“Currently, the City serves in a supporting role to the Pflugerville Community Development Corporation (PCDC) in terms of financial services. PCDC funds a full-time Finance Coordinator position who assists the PCDC Executive Director with the budget process and general accounting services as it relates to the various funds, assets and bank accounts to which the City currently does not have direct access.
With the adoption of this agreement, PCDC will function much like a City department in terms of budget creation and monitoring, reporting and purchasing, which is a common practice in other cities as it greatly improves efficiency and reduces administrative costs by leveraging existing City staff, processes and software. For example, the City would no longer need to send invoices to PCDC to pay for routine expenses like payroll. Instead, payroll for PCDC could be charged directly to their account. You would also have the same finance team working with PCDC to create their budget within the City’s existing budget software, eliminating the need for redundant systems and ensuring alignment with City practices.
As part of the transition process, it is proposed that the current PCDC Finance Coordinator position be allocated to the City Finance Department where they will be able to contribute to broader City accounting needs in addition to the PCDC funds, as determined by the Finance Director. If approved, City staff have created a thorough task and process list (attached) and will work closely with PCDC staff to facilitate a smooth transition related to the City providing full financial services by June 1, 2024.”
Prior Action
The City Council reviewed the agreement and approved revisions and updates to the FY24 Administrative and Professional Service Agreement during a City Council Regular Meeting on May 27, 2023. On February 13, the City Council further reviewed the agreement for proposed revisions and updates, and deferred the agreement to the PCDC Board for further consideration.
Staff Recommendation
Discuss Only
Supporting Documents
City Finance Transition Plan
Professional Service Agreement Redline
Professional Service Agreement Clean
Drafter
Amy Madison, Executive Director