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Friday, April 13, 2012

Why can't the City of Fullerton track labor for the Water Fund (or anything else)?

After listening to the City Manager and various department managers discussing their budget woes at the City's Budget Workshop on Tuesday night it occurred to me to ask a basic question.

Having worked for a few different employers over the years one learns that employee time sheets are an important tool for allocating labor costs and client billing.  "If you cannot measure it," says professor Barry McCarthy "you cannot manage it."

Something I heard, I can't recall just what specifically, caused me to rise out of my seat and approach the dead microphone.  The question was so simple I thought I might be asking a "stupid" question.

My question: "Do employees bill their time to specific projects or funds?"


The answer: "No."

A short time later, Director of Engineering Don Hoppe told me his Engineering Department does track time based on the engineering project.  So, while nearly all of City Hall fails to track employee time, a fundamental principle of management, Don Hoppe's engineering team gets an "A".

If the City were anything like a business, it would have failed decades ago.  But they can simply raise taxes (fees) and continue their charade until someone notices.  Like when water rates skyrocket.

Several managers that I spoke with after the Budget Workshop said they wanted to know how much time their employees are spending on specific projects and tasks but that the current (and new) accounting system just isn't set up for that type of data input.

Of all of the jobs I have ever had, in the public sector and private sector, only two employers did not have employees fill out time sheets and list what work they did.  Both companies went out of business years ago.

The City's inability to account for labor and, therefor actual costs, is at the heart of the issue.  It also blows a titanic hole in labor  arguments about efficiency and effectiveness of employees.

And so City Hall, when faced with running out of money, looks to the taxpayers for the bailout.  Its time to end taxpayer funded bailouts and require employees to track their time based on project funding - just like that which the City requires of their own consultants and contractors.

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