PRESS RELEASES

MAYOR BILL WHITE ANNOUNCES A PLAN TO DIVIDE THE FINANCE AND ADMINISTRATION DEPARTMENT INTO TWO SEPARATE DEPARTMENTS
Department Director Judy Gray Johnson Announces Her Retirement

December 14, 2007 -- Mayor Bill White and Finance & Administration Director Judy Gray Johnson announced today the director's pending retirement and a plan to reorganize the department into two new departments: the Finance Department and the Administration and Regulatory Affairs Department.

"Judy Johnson has played an essential role in helping me manage this City like a well-run business. We are providing far more public services for our growing city while cutting the tax rate every year," said Mayor White. "Judy helped us devise a plan to make municipal pensions more affordable and secure, reach a contract with our firefighters, and fund close to half a billion dollars in new drainage projects with no new types of fee or tax. I respect her decision to retire, and thank her for postponing that retirement previously at my request."

The budget, long-range financial forecasting, public finance, accounting, internal control, deferred compensation, pension, economic development and tax increment reinvestment zone functions will be in the new Finance Department.

The regulatory affairs, including franchise, taxicab, and limousine regulation, commercial permitting, strategic purchasing, central payroll, business services, and City Council administrative support functions will be in the new Administration and Regulatory Affairs Department.

The business services section currently provides payroll and/or administrative support services to several city departments, including Planning & Development, Human Resources, General Services, Affirmative Action, and the Mayor's Office. These services will continue, with the addition of the new Finance Department as a client department.

Johnson, who was named City Controller by the City Council in 2003 after the departure of Controller Sylvia Garcia and has been with the City in various capacities for 27 years, will retire effective January 18, 2008. She and her husband will retire to New Mexico , where they both grew up.

Mayor White will appoint Michelle Mitchell, who currently serves as a Deputy Director, to lead the Finance Department. Mitchell served in various capacities over an 18-year career with Goldman Sachs & Co., one of the world's leading financial services firms, including responsibilities as Chief Financial Officer for Goldman Sachs' North & South Americas' Investment Banking Departments.

He will name Deputy Director Alfred Moran, who has served as CEO for numerous private and public companies, to head the Administration and Regulatory Affairs Department.

"Judy is one of the most dedicated and able public servants I have ever known, and a source of great knowledge and expertise to the City," said Mayor White. "Over decades she has developed a reputation for competence, fiscal prudence, and independent judgment. I have relied on her heavily. But, we also believe we have two dynamic leaders with strong proven track records in the business world in the right spot to help us make this important transition."

"The departments will be led by two of the most experienced and capable people who have ever worked for the City," said Johnson. "Their leadership in their current positions has been outstanding, and I know that they will lead the departments to higher levels of achievement."

There will be no loss of jobs under this restructuring. One of Moran's assignments when he joined the department last spring was a complete review of the organization structure, in partnership with the leaders of each division. A number of changes have already been made as a result of that review. For some employees, titles and areas of responsibility have already changed. While some employees will have new reporting relationships, there will be few other changes, said Johnson. The review highlighted some areas where additional staff is needed, and several new positions will be added. There also will be some changes in office space.

The City Legal Department is working on identifying and drafting necessary changes to City Ordinances. The plan will be submitted for City Council consideration on January 16 City Council confirmation of the appointments would be considered at the same time.