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HomeMy WebLinkAbout01.06.2020 SP Minutes @4:00MINUTES SPECIAL MEETING BUDGET STANDING � y COMMITTEE c'�LIFOR�1� 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, JANUARY 06, 2020 4:00 p.m. Call to Order. Roll Call. AGENDA REVIEW No changes PUBLIC COMMENTS None MATTERS FOR CONSIDERATION Time: 4:01 p.m. PRESENT: Councilmember Nicolas and Vice Mayor Addiego. 1. Motion to approve the Minutes for the meeting of June 12, 2019. MOTION - Councilmember Nicolas Second -Vice Mayor Addiego to approve the minutes from the meeting of June 12, 2019. The motion carried unanimously. 2. Report regarding Comprehensive Annual Financial Report for fiscal year ended June 30, 2019. (Janet Salisbury, Finance Director) Finance Director Salisbury introduced the item and provided an overview of the City of South San Francisco's financial results for fiscal year ending June 30, 2019. She indicated that the General Fund is the City's main operating fund and accounts for 41 percent of all operating revenues and 34 percent of operating expenditures in Fiscal Year 2018-19. She indicated that the City had received $121.9 million in General Fund operating revenues, which was $12.7 million or 11.6 percent above the amended budget of $109.2 million. Including carryover purchase orders, General Fund expenditures were $114.3 million, a favorable variance of $377 thousand, or 0.3 percent. Including transfers in and out, the net change in fund balance was approximately $21 million. In compliance with the City's Reserves Policy, $2.05 million of the surplus was necessary for additional contributions towards General Fund reserves. In addition, after all outstanding set -asides for open purchase orders, transfers to capital improvement programs already approved by Council, and other accounting treatments are taken into account, $11.1 million is available as unencumbered General Fund surplus. Staff recommends transferring $10.9 million to Infrastructure Reserves, and the remaining $200 thousand to be split respectively between the Summer Jobs for Youth Program and community outreach for the Census 2020. The surge in development and strength of the larger Bay Area economy had helped fuel the health of the City's financial position, as reflected in the FY2018-19 Comprehensive Annual Financial Report. Staff recommends that the Budget Standing Committee accept the overview of the Comprehensive Annual Financial Report and refer both the financial results and appropriation request to the January 22, 2020 Council meeting for full Council acceptance. Vice Mayor Addiego inquired whether staff could provide a list of categories for the incoming sales taxes. Finance Director Salisbury indicated she would provide the requested information as a follow-up item. Councilmember Nicolas inquired about the acronym OPEB. Finance Director Salisbury indicated that the acronym was short for Other Post Employment Benefits which are health care costs and other costs outside of the normal pension costs. Vice Mayor Addiego indicated it would be a benefit to see the entire portion of property taxes collected by the City in order to educate the community and evaluate the benefits of other taxing entities. Finance Director Salisbury requested clarification whether the information should be included for the January 22nd City Council meeting. City Manager Futrell indicated he would like staff to provide the information along with the breakdown of incoming sales tax categories for the upcoming City Council meeting on January 22, 2020. Vice Mayor Addiego inquired about the Parks construction fund balance. Assistant City Manager Ranals indicated there was approximately $2.1 million in the fund balance, which included planned projects. Councilmember Nicolas inquired about the prioritization of the Capital Infrastructure Projects. City Manager Futrell provided an overview of the process and indicated that the City Council would prioritize which projects would move forward. 3. Report regarding submittal to the Successor Agency Oversight Board a Recognized Obligation Payment Schedule and Administrative Budget for the period July 1, 2020 through June 30, 2021. (Janet Salisbury, Finance Director) Finance Director Salisbury presented the report regarding the submittal to the Successor Agency Oversight Board a Recognized Obligation Payment Schedule (ROPS) and Administrative Budget for the period July 1, 2020 through June 30, 2021. She indicated that a total of $6,186,851 was requested to fund SPECIAL BUDGET STANDING COMMITTEE MEETING JANUARY 06, 2020 MINUTES PAGE 2 ROPS 2020-21 obligations, including $1,133,500 from Redevelopment Property Tax Trust Funds ("RPTTF") and $5,035,351 from Other Funds and Reserve Balances. The ROPS 20-21 requests an administrative cost allowance of $200,000. She provided the ROPS 2020-21 obligations and report of cash balances in Fiscal Year 2017-18. As of June 30, 2018, the Successor Agency had $532,911 in Reserve Balances leftover from prior ROPS periods. There were also $3,312,924 in Other Funds as of June 30, 2018. Included were revenues from a City payment to the Successor Agency related to an Oyster Point loan, rents and interest earned in Fiscal Year 2017-18, and Other Funds unspent from prior periods. Staff had allocated $1,207,516 in Reserve Balances ($531,911 in Excess PPA and $1,207,516 from the Oyster Point escrow account) and $3,312,924 in Other Funds toward ROPS 20-21 Items 12-14 and 48. Any remaining balance would be reserved for future ROPS. As of July 1, 2018, the San Mateo Countywide Oversight Board was established pursuant to Health and Safety Code Section 341790), replacing the local South San Francisco Oversight Board. The Countywide Oversight Board reviews actions taken by all successor agencies within San Mateo County and can direct successor agencies to perform certain actions. She indicated that the Countywide Oversight Board would consider the ROPS 2020-21 and Administrative Budget for Fiscal Year 2020-21 at its meeting on January 13, 2020. With the consolidation of the Oversight Boards, successor agencies have been asked to provide additional supporting documentation, especially for the administrative allowance. Successor Agency staff would respond to any requests for additional information from the Oversight Board. Adoption of both resolutions would enable the Successor Agency to forward the proposed ROPS and Administrative Budget to the Oversight Board on January 13, 2020 in order to fulfill the obligations under Health and Safety Code Section 34177 regarding adoption of a ROPS 2020-21 and Administrative Budget for the period July 1, 2020 through June 30, 2021. The ROPS 2020-21 would then be submitted to the California Department of Finance for approval by February 1, 2020. 4. Report apprising the Budget Standing Committee of a recommended resolution for City Council to approve the Annual Impact Fee and Sewer Capacity Charge Report for Fiscal Year 2018-19. (Janet Salisbury, Finance Director) Finance Director Salisbury presented the report and provided background information on the Annual Impact Fee and Sewer Capacity Charge Report for Fiscal Year 2018-19. She indicated that state law (Government Code Section 66000 et seq.) authorizes the City to collect impact fees from new development to fund public facilities which are needed as a result of new developments. The City currently administers five impact fee programs and one sewer capacity charge that fund new development's share of certain capital infrastructure projects. The impact fees are charged based upon a pro -rata share of the cost of the new improvements. The sewer capacity charge is a cost recovery charge based on proportional benefit to the person or property being charged, associated with providing collection and treatment capacity, both through the existing infrastructure provided, and through future capital projects. SPECIAL BUDGET STANDING COMMITTEE MEETING JANUARY 06, 2020 MINUTES PAGE 3 She provided summaries of each fund's ending balances as of June 30, 2019 and indicated that adopting the report would satisfy the reporting requirements of Government Code Section 66000 et seq. Councilmember Nicolas inquired whether the staff was confident that they were complying with all the regulations in regards to all the City funds. Finance Director Salisbury reassured the subcommittee members that the City was complying with all regulations and current on all reporting. Vice Mayor Addiego requested clarification on whether prepayment was required for sewer impact fees. Finance Director Salisbury indicated that many businesses prepay permits because they have various projects throughout the City. ADJOURNMENT Being no further business, Vice Mayor Addiego adjourned the meeting at 4:48 p.m. Submitted by: a4A J -44e14 Cindy A(Jvila, Assistant City Clerk City of South San Francisco Approved by: T,n OAK �Jv Mark Addiego, Vice Mayor City of South San Francisco Approved by the Budget Standing Committee: 0 2 / 2,1 /7 .0 Zo SPECIAL BUDGET STANDING COMMITTEE MEETING JANUARY 06, 2020 MINUTES PAGE 4