HomeMy WebLinkAbout2019-02-11 e-packet@5:00Monday, February 11, 2019
5:00 PM
City of South San Francisco
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, CA
City Hall, City Manager's Conference Room
400 Grand Avenue, South San Francisco, CA
Budget Standing Committee of the City Council
Special Meeting Agenda
February 11, 2019Budget Standing Committee of the
City Council
Special Meeting Agenda
NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of
California, the Budget Standing Committee of the City of South San Francisco will hold a Special Meeting on
Monday, February 11, 2019 at 5:00 p.m., at City Hall, City Manager's Conference Room, 400 Grand Avenue,
South San Francisco, California.
Purpose of the meeting:
Call To Order.
Roll Call.
Agenda Review.
MATTERS FOR CONSIDERATION
Motion to approve the Minutes from the meeting of November 5, 2018.1.
Report regarding Fiscal Year 2018-19 mid-year budget. (Justin Lovell, Acting
Financial Services Manager)
2.
Adjournment.
Page 2 City of South San Francisco Printed on 4/17/2019
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:19-115 Agenda Date:2/11/2019
Version:1 Item #:1.
Motion to approve the Minutes from the meeting of November 5, 2018.
City of South San Francisco Printed on 2/7/2019Page 1 of 1
powered by Legistar™
Call to Order. Time: 10:00 a.m.
Roll Call. PRESENT: Mayor Normandy and Councilmember
Gupta
PUBLIC COMMENTS – None.
MATTERS FOR CONSIDERATION
1. Motion to approve the Minutes from the meetings of March 20, 2018 and May 2, 2018.
MOTION
Councilmember Gupta and Mayor Normandy seconded a motion to approve the minutes from the
meetings of March 20, 2018 and May 2, 2018. The motion carried unanimously.
2. Report regarding year-end financial results for Fiscal Year 2017-18. (Richard Lee, Director of
Finance)
Director Lee summarized the year-end financial results including General Fund revenues and
expenditures, surplus of $13.9 million, recommended transfer of $10 million to reserves and
$1 million to PERS Stabilization Reserve, and revenues versus projections.
Councilmember Gupta discussed the $4.4 million over anticipated permit revenues and asked
if staff resources were stressed. City Manager Futrell explained that the pressure on staff was
relieved by contract employees.
Mayor Normandy stated the variance was also based on Council action. City Manager Futrell
confirmed that the developer fees were right sized 18 months ago.
MINUTES
SPECIAL MEETING
BUDGET STANDING
COMMITTEE
OF THE
CITY OF SOUTH SAN FRANCISCO
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, California 94083
Meeting to be held at:
CITY HALL, CITY MANAGER’S
CONFERENCE ROOM
400 GRAND AVENUE
SOUTH SAN FRANCISCO, CA
MONDAY, NOVEMBER 5, 2018
10:00 a.m.
BUDGET COMMITTEE MEETING NOVEMBER 5, 2018
MINUTES PAGE 2
Director Lee continued summarizing projections on revenues and expenditures, and notable
variances from other operating funds.
Councilmember Gupta asked the total budget for the Orange Memorial Park Stormwater
Capture Project. Administrator Lovell stated the current budget was $1 million.
Director Lee discussed other notable expenditures and reserve funds.
Councilmember Gupta stated the report implied that additional funds would be put into
Capital Infrastructure Reserves and confirmed that the Council would decide. Director Lee
stated the Council could leave the extra equity in the General Fund but it was staff’s
recommendation that additional funds be put into the Capital infrastructure Reserve.
Councilmember Gupta suggested the matter be reviewed by the new Council.
Mayor Normandy thanked staff for the report.
City Manager Futrell commended staff and the Council for increased revenues and decreased
expenditures.
ADJOURNMENT
Being no further business, Mayor Normandy adjourned the meeting at 10:14 p.m.
Submitted by: Approved by:
Gabriel Rodriguez, Deputy City Clerk Committee Member
City of South San Francisco City of South San Francisco
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:19-98 Agenda Date:2/11/2019
Version:1 Item #:2.
Report regarding Fiscal Year 2018-19 mid-year budget.(Justin Lovell, Acting Financial Services Manager)
RECOMMENDATION
It is recommended that the Budget Standing Committee provide feedback and direct staff to present the
Fiscal Year (FY) 2018-19 mid-year budget to the City Council for consideration on February 27, 2019.
BACKGROUND/DISCUSSION
This report summarizes the City’s mid-year financial status by providing an analysis of revenues and
expenditures through the first half of the Fiscal Year (FY)for the General Fund,Measure W Fund and the
Information Technology Fund.The intent of this report is to provide the Budget Standing Committee with a
brief update on how these funds are performing in comparison to the requested budget appropriations.
General Fund
Through the mid-year,total revenues are on track to meet budgeted amounts inclusive of the proposed
adjustments.Current revenues are estimated to exceed $111.6 million,which combined with committed
reserves from the prior year, total $118.4 million in available General Fund resources.
The FY 2018-19 amended budget is $110.1 million and staff has requested an additional $1.5 million revenues
and $871,000 in expenditures via this mid-year adjustment.If approved,the mid-year adjustment will result in
a FY 2017-18 amended budget of $111.6 million.It is anticipated the General Fund will generate a net surplus
of $1.2 million at year-end after contributing to General Fund reserves in compliance with the City’s Reserves
Policy.
General Fund Revenues
Based on current year-to-date revenues,General Fund revenues are projected to be $111.6 million,an increase
of $1.5 million over the amended budget.This increase is a mix of revenue types performing better than
anticipated and others not reaching expected levels.Staff recommends that each of the revenue types below be
adjusted as follows:
Education Revenue Augmentation Fund (ERAF) Refund from County +$790,084
The ERAF property tax refund from the County is expected to be $3.3 million at year-end,better than
originally anticipated.
Revenue from other Agencies +$368,562
The Fire Department expects an additional $368,562 of additional revenue from reimbursements from the
Governor’s Office of Emergency Service (Cal OES)from the Fire Department’s mutual aid assistance at
several wildfires.
City of South San Francisco Printed on 2/6/2019Page 1 of 3
powered by Legistar™
File #:19-98 Agenda Date:2/11/2019
Version:1 Item #:2.
Charges for Services +$340,000
The Fire Department expects an additional $340,000 of additional revenue from ambulance billing.
General Fund Expenditures
Including the $871,000 in requested mid-year appropriations,projected expenditures are expected to be $1.2
million less than available resources.Mid-year appropriation requests are intended to be one-time
appropriations to the current Fiscal Year budget.There is an exception in the Human Resources Department
that includes on-going staff costs and the Information Technology Department that will have a multi-year
impact.
City Manager +$200,000
The communications division within the City Manager’s office is requesting an additional $200,000 for
communications and outreach related to the potential formation of a community facilities district (CFD)that the
City is pursuing to secure land based financing for infrastructure projects.If a CFD is formed,the City can be
reimbursed for these expensescertain preliminary expenses related to formation costs.
Finance + $20,000
The Finance Department is requesting an additional $20,000 for consultant services related to potential CFD
formation.If a CFD is formed the City can be reimbursed for these expensescertain preliminary expenses
related to formation costs.
Human Resources +87,500
The Human Resources Department is requesting additional budget for the following items:an estimated
$25,000 is needed based on current third-party investigations of claims,an additional $20,000 is requested to
pay for mandatory classification and compensation surveys per labor Memorandum of Understanding (MOU),
an additional $30,000 is requested for sexual harassment prevention training,and an additional $12,500 to
promote a Human Resources Analyst I to an Analyst II.
Economic and Community Development +$40,000
The Economic and Community Development Department is requesting $40,000 for consultant services related
to developing renderings and other supporting material related to the formation of a CFD.If a CFD is formed,
the City can be reimbursed for certain preliminary expenses related to formation costs these expenses.
Fire Department +$368,561
The Fire Department is requesting additional funding for reimbursable expenses related to mutual aid
deployments for wildfires and hurricanes.Fire crews responded to four in-State and out of State mutual aid
deployments during FY 2018-19.This activity is reimbursable through various government agencies.There is a
corresponding revenue increase for these expenses.
Parks and Recreation +$100,000
The Parks and Recreation Department is requesting an additional $100,000 for the replacement of 8 HVAC
units at the Community Learning Center.The existing units were is installed in 1997 and were recommended
for replacement as part of the 2015 Facilities Assessment.
Transfer Out to Information Technology Fund +55,000
The Information Technology Department is requesting an additional $55,000 to fund through the end of the FY
monthly web-based timecard maintenance with VistaTime.This request is also part of the Information
City of South San Francisco Printed on 2/6/2019Page 2 of 3
powered by Legistar™
File #:19-98 Agenda Date:2/11/2019
Version:1 Item #:2.
Technology Fund.
Requests from other Funds
Measure W (Fund 101) +$2,426,550
The City’s sales tax consultants are projecting that the City’s ½cent sales tax,Measure W is anticipated to have
$12.1 million in FY 2018-19 revenues, up from the adopted budget of $9.7 million.
Information Technology (Fund 785) +$55,000 Revenues +$55,000 Expenditures
As mentioned above the Information Technology Department is requesting an additional $55,000 to fund the
monthly web-based timecard maintenance.There will be an increase in the revenue budget for transfers in from
General Fund and an increase in the expenditure budget.
FISCAL IMPACT
Approval of the additional appropriations from the General Fund will result in a $1.5 million in revenues and
$871,000 in expenditure appropriations current appropriations for FY 2018-19.Inclusive of the proposed
increases,it is anticipated that General Fund will end the fiscal year with an operating surplus of $1.5 million.
At year end,staff will calculate the amount of any surplus necessary to meet minimum reserve requirements,
currently this is estimated to be $299,729.
CONCLUSION
The City’s operating budget at the mid-year point remains on target.The additional revenues and offsetting
appropriations maintain the City’s prudent financial position.Staff continues to recommend fiscal conservatism
in light of the escalating pension costs.
Attachments:
1.General Fund Summary
2.Measure W Fund Summary
3.Information Technology Fund Summary
4.Recommended Budget Adjustments
City of South San Francisco Printed on 2/6/2019Page 3 of 3
powered by Legistar™
ATTACHMENT 1: FY2018-19 GENERAL FUND SUMMARY
GENERAL FUND SUMMARY
Property Taxes 31,594,035$ 32,006,068$ 32,006,068$ 13,462,428$ 32,006,068$
ERAF Refund from County 2,549,591 2,549,591 2,549,591 - 790,084 3,339,675
Sales Tax 17,567,674 17,203,726 17,203,726 6,794,354 17,203,726
Transient Occupancy Tax 13,978,533 15,834,000 15,834,000 6,893,160 15,834,000
Business License 1,579,099 1,503,455 1,503,455 651,675 1,503,455
Commercial Parking Tax 3,248,569 3,829,573 3,829,573 1,367,696 3,829,573
Franchise Fees 4,403,493 4,000,000 4,000,000 1,093,881 4,000,000
Building and Fire Permits 14,674,810 12,072,049 12,072,049 7,551,739 12,072,049
Revenue from Other Agencies 2,610,231 1,473,470 2,391,195 1,022,084 368,562 2,759,757
Charges for Services 9,518,743 7,550,726 7,550,726 3,795,928 340,000 7,890,726
Administrative Charges 1,405,923 1,437,801 1,437,801 718,901 1,437,801
Fines 423,604 618,500 618,500 465,220 618,500
Interest & Rent 6,837,571 5,309,459 5,309,459 2,226,898 5,309,459
Transfers In & Other 10,018,903 3,665,276 3,786,276 1,434,407 3,786,276
Revenues 120,410,779$ 109,053,694$ 110,092,419$ 47,478,371$ 1,498,646$ 111,591,065$
Plus committed reserves from prior year 6,800,262
Total Revenues 120,410,779$ 109,053,694$ 110,092,419$ 47,478,371$ 1,498,646$ 118,391,327$
City Council 239,260$ 280,694$ 280,694$ 116,920$ -$ 280,694$
City Clerk 660,306 817,567 817,567 358,628 - 817,567
City Treasurer 135,218 132,900 132,900 47,077 - 132,900
City Attorney 996,380 1,063,691 1,063,691 356,926 - 1,063,691
City Manager 2,668,716 2,958,815 3,161,832 1,105,903 200,000 3,361,832
Finance 3,080,770 3,022,116 3,364,365 1,422,714 20,000 3,384,365
Non-Departmental 1,034,800 1,072,087 1,130,087 316,984 - 1,130,087
Human Resources 1,555,907 1,535,163 1,692,597 805,999 87,500 1,780,097
Economic & Community Development 7,722,681 9,009,367 12,003,981 4,550,983 40,000 12,043,981
Fire 26,059,068 27,711,586 28,491,019 14,120,574 368,562 28,859,581
Police 26,639,005 29,174,475 29,254,475 15,089,339 - 29,254,475
Public Works 5,014,342 6,284,775 6,530,146 2,428,940 - 6,530,146
Library 5,379,836 5,806,294 5,921,858 2,977,016 - 5,921,858
Parks & Recreation 15,468,353 16,294,509 16,739,007 8,291,016 100,000 16,839,007
CIP 921,818 2,383,001 4,932,057 623,656 4,932,057
Transfers Out 19,965,646 500,000 500,000 250,000 55,000 555,000
Total Expenditures 117,542,108$ 108,047,038$ 116,016,276$ 52,862,673$ 871,062$ 116,887,338$
Net Surplus/ (Deficit) 1,503,989$
Estimated amount to fully fund reserves (299,729)
Remaining surplus 1,204,260$
2018-19
Requested
2018-19
Projected
(Amended +
Requested)
2018-19
Requested
2018-19
Projected
(Amended +
Requested)
Expenditures 2017-18
Actual
2018-19
Adopted
2018-19
Amended
2018-19
YTD
Revenues 2017-18
Actual
2018-19
Adopted
2018-19
Amended
2018-19
YTD
ATTACHMENT 2: MEASURE W FUND SUMMARY
MEASURE W
Measure W 11,162,238$ 9,731,450$ 9,731,450$ 5,352,156$ 2,426,550$ 12,158,000$
-
Total Revenues 11,162,238$ 9,731,450$ 9,731,450$ 5,352,156$ 2,426,550$ 12,158,000$
Operating Expenses 22,350$ -$ 53,650$ 40,975$ -$ 53,650$
Transfer Out to General Fund 2,440,861 -
Transfer Out to CIP 6,585,030 9,399,224 16,714,909 1,539,891 16,714,909
Total Expenditures 9,048,241$ 9,399,224$ 16,768,559$ 1,580,866$ -$ 16,768,559$
Surplus/(Deficit)2,113,996 332,226 (7,037,109) (4,610,559)
Fund Balance 11,404,142$ 11,736,368$ 4,699,259$ 7,125,809$
2018-19
Projected
(Amended +
Requested)
2018-19
Requested
2018-19
Projected
(Amended +
Requested)
Expenditures 2017-18
Actual
2018-19
Adopted
2018-19
Amended
2018-19
YTD
2018-19
Requested
Revenues 2017-18
Actual
2018-19
Adopted
2018-19
Amended
2018-19
YTD
Measure W
FY18-19 Mid Year
ATTACHMENT 3: INFORMATION TECHNOLOGY FUND SUMMARY
INFORMATION TECHNOLOGY
Charges for Services 56,001$ 40,000$ 40,000$ 46,615$ -$ 40,000$
Use of Money & Property 1,676 14,000 14,000 - - 14,000
Other Revenues 2,584,771 2,670,676 2,670,676 1,335,338 - 2,670,676
Trasfer in 240,000 240,000 - 55,000 295,000
Total Revenues 2,642,448$ 2,964,676$ 2,964,676$ 1,381,953$ 55,000$ 3,019,676$
Payroll 1,145,674$ 1,313,513$ 1,313,513$ 756,954$ -$ 1,313,513$
Supplies & Services 1,078,430 1,739,317 2,265,574 533,565 55,000 2,320,574
Interdepartment Charges 11,077 11,845 11,845 5,923 11,845
Total Expenditures 2,235,180$ 3,064,675$ 3,590,932$ 1,296,441$ 55,000$ 3,645,932$
Surplus/(Deficit)407,267$ (100,000)$ (626,257)$ (626,257)$
Fund Balance 1,009,575$ 909,575$ 283,319$ 283,319$
2018-19
Projected
(Amended +
Requested)
Expenditures 2017-18
Actual
2018-19
Adopted
2018-19
Amended
2018-19
YTD
2018-19
Requested
2018-19
Projected
(Amended +
Requested)
Revenues 2017-18
Actual
2018-19
Adopted
2018-19
Amended
2018-19
YTD
2018-19
Requested
Information Technology
FY18-19 Mid Year
ATTACHMENT 4: RECOMMENDED FY 2018-19 BUDGET ADJUSTMENTS
Account Fund Department Account Number Adjustment +/(-) Account Type Description
General Fund 100 GF 100-00000-30109 790,084 Revenue Actual ERAF received
General Fund 100 Fire 100-11610-35207 340,000 Revenue Ambulance billing
General Fund 100 Fire 100-11710-34041 368,562 Revenue OT Reimburseable by CAL OES- mutual
aid
General Fund 100 CM/Communicat
ions 100-05130-5005 200,000 Expenditure
CFD communications outreach
consulting
General Fund 100 Finance 100-06110-5005 20,000 Expenditure Consulting services for CFD formation
General Fund 100 HR 100-09110-5013 30,000 Expenditure Sexual Harassment Prevention Training
General Fund 100 HR 100-09110-4001 12,500 Expenditure Reclass HR Analyst I to II
General Fund 100 HR 100-09110-5001 20,000 Expenditure
Class/Comp study-labor MOU's &
Reclassification studies
General Fund 100 HR 100-09110-5038 25,000 Expenditure HR Claims evaluations
General Fund 100 ECD 100-10410-5005 40,000 Expenditure Consulting services for CFD formation
General Fund 100 Fire 100-11710-4101 368,562 Expenditure
OT Reimburseable by CAL OES- mutual
aid
General Fund 100 P&R 100-17971-5061 100,000 Expenditure Replace 8 HVAC units-CLC
General Fund 100 IT 100-00000-9785 55,000 Expenditure Transfer out -VistaTime maintennace
Information
Technology 785 Information
Technology 785-16110-5040 55,000 Expenditure
VistaTime timecard monthly
maintenance
Information
Technology 785 GF 785-00000-39100 55,000 Revenue Transfer In- VistaTime maintenance