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Home My WebLink About2020-02-24 e-packet@2:30Monday, February 24, 2020 2:30 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 24, 2020Budget 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 24, 2020 at 2:30 p.m., in 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. Public Comments. MATTERS FOR CONSIDERATION Motion to approve the Minutes for the meeting of January 6, 2020.1. Report regarding Fiscal Year 2019-20 mid-year budget. (Janet Salisbury, Finance Director) 2. Adjournment. Page 2 City of South San Francisco Printed on 5/5/2020 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-158 Agenda Date:2/24/2020 Version:1 Item #:1. Motion to approve the Minutes for the meeting of January 6, 2020. City of South San Francisco Printed on 2/21/2020Page 1 of 1 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-72 Agenda Date:2/24/2020 Version:1 Item #:2. Report regarding Fiscal Year 2019-20 mid-year budget.(Janet Salisbury, Finance Director) RECOMMENDATION Staff requests that the Budget Standing Committee provide feedback and recommend that City Council accept the Fiscal Year (FY) 2019-20 mid-year budget at the February 26, 2020 Council meeting. BACKGROUND/DISCUSSION On June 26,2019,Council adopted Resolution No.83-2019 approving the FY2019-21 Biennial Operating Budget for the City of South San Francisco. This report summarizes the City’s financial analyses conducted by staff based upon actuals for the first half and projections for the latter half of FY 2019-20.In addition,it outlines the additional budget appropriations requests for FY 2019-20 from the various City Departments for the Committee’s (and subsequent Council’s) consideration.Overall,based on actual results from July 1,2019 through December 31,2019 and projections through year end,staff expects that total revenues are on track to meet budgeted (and additional proposed) expenditures. General Fund The General Fund is the City’s primary operating fund,serving as the major funding source for City Administration,Police,Fire,Library and Parks and Recreation services.Attachment 1 shows the General Fund Summary showing comparisons of FY2018-19 Actual Results,FY2019-20 Adopted Budget,FY2019-20 Amended Budget (which includes Council actions through January 31,2020),and FY2019-20 Actual Results (July 1, 2019 through December 31, 2019). Revenues.Council adopted FY2019-20 budget projected revenues of almost $113.9 million.Once prior year encumbrances (i.e.,purchase orders/contracts signed prior to July 1,2019)of approximately $11.9 million are taken into account,the total Council adopted FY2019-20 revenue budget is $125.8 million.Subsequent Council actions from July 2019 through January 2020 (e.g.,acceptance of grants and other funds)increased the budgeted revenues by approximately $1 million ($975,774,to be exact),making the total FY2019-20 budget $127.6 million.Staff is conservatively projecting that based upon actual revenue receipts through December 2019, City revenues are on track to meet that budgeted revenue target of $127.6 million. Note:Staff is closely monitoring the Transit Occupancy Tax (TOT)due to travel restrictions associated with the Coronavirus.The San Francisco International Airport is a hub for worldwide business travel,and local hotels have reported room cancellations by visitors from China.However,taking the potential impacts of the virus into consideration,TOT collections are on track to meet the adopted budget revenue projection of $16.9 million based upon 6-month actual results. Expenditures.The Council adopted budget expenditures for FY2019-20 was $111.6 million.Subsequent Council actions from 2019 through January 2020 (e.g.,acceptance of contracts and additional appropriation requests),along with the “carryover encumbrances”have increased the budgeted expenditures to $125.5 City of South San Francisco Printed on 2/21/2020Page 1 of 4 powered by Legistar™ File #:20-72 Agenda Date:2/24/2020 Version:1 Item #:2. requests),along with the “carryover encumbrances”have increased the budgeted expenditures to $125.5 million.Staff is conservatively projecting that based upon actual expenditures through December 2020,City Departments are on track not to exceed their budgeted expenditures. Revenues vs.Expenditures Analysis.Based upon a review of mid-year results and accounting reconciliations, the General Fund surplus for FY 2019-20 at mid-year is approximately $2.2 million ($127,663,906 revenues minus $125,459,243 expenditures equals $2,174,663).This surplus is driven by reconciliations as it relates prior year encumbrances.Staff informed Council as part of year-end results for FY2018-19 that expenditure overages vs.budget in the Economic Community and Development Department ($1,874,616)and Public Works ($319,002)was a timing issue based upon encumbrances made in the prior fiscal year and that it would normalize in FY2019-20.The surplus being recognized is a result of these encumbrance reconciliations (along with other minor accounting clean-ups). Appropriations Request.City Departments have made several one-time appropriations requests as part of the mid-year budget review process. §Fire Department 1.Budget Neutral - $138,272 related to mutual aid deployments for the Kincaid wildfire in FY2019-20. This additional expenditure will be offset by equal additional revenues as it is reimbursable through Cal OES; this change is budget neutral. 2.$13,220 to purchase a stock of Meals Ready to Eat (MRE) and bottled water to have available during an activation of the Emergency Operations Center. §Public Works 1.$50,000 to replace the “Birthplace of Biotechnology” sign that was damaged by an auto collision. This funding was received from Genentech as a previous donation in the prior fiscal year and accepted into the City’s General Fund. 2.$1,500,000 for the Linden Avenue Complete Streets projects. These projects are partially funded with a $400,000 TDA grant and an $868,000 ATP grant, but the total cost for both projects is $5 million. An additional $1.5 million is necessary to fully fund the projects. §Non-Departmental 1.$425,000 for costs related to City’s 2020 Anti-Litter effort. On February 19th, 2020, staff presented to Council via a study session the estimated costs related to this project. §Transfer Out to Capital Improvement 1.$80,000 for traffic improvement studies, review and implementation 2.$75,000 for design of medians along El Camino Real between Spruce and Chestnut 3.Budget Neutral - $104,258 for costs associated with Gardiner Park project. This additional expenditure will be offset by salary savings within Parks and Recreation Department. General Fund Summary.Funding for these budget requests are available from the projected FY19-20 General Fund surplus of $2.1 million as noted above: Projected General Fund Surplus $2,174,663 Projected Additional Net Expenditures $2,143,220 Difference $ 31,443 City of South San Francisco Printed on 2/21/2020Page 2 of 4 powered by Legistar™ File #:20-72 Agenda Date:2/24/2020 Version:1 Item #:2. Other Funds The following outlines requested changes to other funds as part of the mid-year review.Attachment 2 shows the Fund Summaries for the following funds. §City Housing Fund 1.Budget Neutral - $30,000 to provide assistance to low-income South San Francisco residents experiencing financial distress and needing rent payment assistance via the YMCA’s rental assistance program. This is considered a homeless prevention tool, and the Economic and Community Development Department is requesting the re-appropriation of $30,000 from the City Housing Fund budget for this purpose. This action will result in a net zero budget impact on the General Fund. §Sewer Enterprise Fund 1.$75,000 for contract services related to the repair of City sewer main and laterals on South Maple and Spruce Avenues. Aging infrastructure is resulting in increases in repair related services and this project is necessary according to Public Works. §Storm Water Fund 1.$150,000 for contract services related to the repair of the deteriorated storm drain main that runs beneath the Central Concrete Supply Company, which is receiving storm water from South Linden Avenue. Currently, Public Works maintenance staff has a storm pump in place during wet weather season that is used to eliminate flooding; however, this is a temporary fix. Without these repairs, South Linden will continue to experience flooding and may sustain additional damage. It is important to note that the Storm Water Fund is not self-supporting and is subsidized by both the Gas Tax Fund and the General Fund. For FY 2019-20, Council adopted budgets that included $670,000 and $465,156 transfers out of the Gas Tax Fund and General Fund, respectively, to subsidize the shortfalls within the Storm Water Fund. This additional appropriation will not result in additional transfers out in this fiscal year, but will reduce the fund balance commensurately. §E101 Traffic Impact Fee 1.$125,000 for survey and design related to the East Grand Avenue Bicycle Gap. The City was awarded a Transportation Development Act grant and as such is required to meet deadlines as part of the grant requirements. The additional funds are needed so that staff can begin creating the plans, specifications and estimates to stay on schedule. 2.$150,000 to meet requirements to install improvements along South Airport Boulevard and Belle Aire Road as part of the City’s role as a permittee of the Bay Conservation and Development Commission (BCDC). Failure to make these may result in potential enforcement and fines from BCDC. 3.$150,000 to make corrections to the Bay Trail access route that involves relocating existing street lights per BCDC request. Staff will verify and document that these projects are eligible for East of 101 Traffic Impact Fee funds prior to City of South San Francisco Printed on 2/21/2020Page 3 of 4 powered by Legistar™ File #:20-72 Agenda Date:2/24/2020 Version:1 Item #:2. Staff will verify and document that these projects are eligible for East of 101 Traffic Impact Fee funds prior to the expenditures. FISCAL IMPACT It is anticipated that General Fund will end the fiscal year with an operating surplus of $2,174,665.Approval of the additional appropriations requests from the General Fund will result in a net expenditure budget adjustment of $2,143,220 million for FY 2019-20. In addition, there are appropriations requests in the following funds: §Sewer Enterprise Fund =$ 75,000 §Storm Water Fund =$150,000 §E101 Traffic Impact Fee Fund =$425,000 CONCLUSION The City’s operating budget at the mid-year point remains on target.The expected General Fund surplus revenues offset expenditure appropriations request without decreasing reserve levels and ultimately maintaining the City’s prudent financial position.Staff requests that the Budget Subcommittee recommend that Council accept the mid-year results and appropriate per the requested budget adjustments. Attachments: 1.General Fund Summary 2.Other Fund Summary 3.Mid-Year FY 19-20 Recommended Adjustments 4.Mid-Year Budget Presentation City of South San Francisco Printed on 2/21/2020Page 4 of 4 powered by Legistar™ ATTACHMENT 1: FY2019-20 GENERAL FUND SUMMARY GENERAL FUND SUMMARY Property Taxes 38,659,658$ 36,659,133$ 36,659,133$ 15,467,178$ Sales Tax 19,606,689 18,763,000 18,763,000 6,239,801 Transient Occupancy Tax 17,091,222 16,855,297 16,855,297 8,280,123 Commercial Parking Tax 2,882,732 3,979,573 3,979,573 1,116,458 Other Taxes 2,112,672 2,078,559 2,078,559 931,833 Franchise Fees 4,469,808 4,000,000 4,000,000 1,146,931 Licenses and Permits 15,381,415 12,131,018 12,131,018 6,515,805 Fines and Forfeitures 926,728 618,500 618,500 491,811 Revenue from Other Agencies 2,867,795 1,626,854 2,339,350 405,458 Charges for Services 11,563,754 10,417,837 10,417,837 5,530,241 Interest and Rent 6,078,798 5,309,459 5,309,459 1,650,092 Other Revenues 330,845 181,994 181,994 95,808 Transfers In 7,143,014$ 1,261,591$ 1,524,868$ 600,458$ Revenues 129,115,132$ 113,882,815$ 114,858,589$ 48,471,997$ Plus committed reserves from prior year 11,868,688 12,775,317 Total Revenues 129,115,132$ 125,751,504$ 127,633,906$ 48,471,997$ City Council 258,759$ 290,291$ 290,291$ 129,679$ City Clerk 770,987 1,056,761$ 1,091,061$ 503,740$ City Treasurer 123,504 143,137$ 143,137$ 65,793$ City Attorney 961,588 1,115,935$ 1,115,935$ 427,555$ City Manager 2,298,368 2,542,579$ 6,118,639$ 2,136,580$ Finance 2,789,191 3,294,240$ 3,679,026$ 1,600,814$ Non-Departmental 1,218,354 997,844$ 997,844$ 299,351$ Human Resources 1,621,404 1,794,862$ 1,919,065$ 867,434$ Economic & Community Development 8,433,295 9,925,951$ 13,936,637$ 4,012,323$ Fire 27,563,733 29,608,967$ 30,832,438$ 15,077,547$ Police 28,482,441 30,926,920$ 31,071,930$ 16,986,741$ Public Works 5,787,769 5,018,087$ 5,705,271$ 2,972,685$ Library 5,628,684 6,132,137$ 6,304,903$ 3,216,944$ Parks & Recreation 16,530,599 17,762,501$ 17,710,005$ 9,251,310$ CIP 1,553,574 200,001$ 3,789,608$ 820,263$ Transfers Out 4,098,258 753,453$ 753,453$ 1,183,890$ Total 108,120,507 111,563,667 125,459,243 59,552,649 Expenditures 108,120,507$ 111,563,667$ 125,459,243$ 59,552,649$ Plus committed reserves from prior year 11,868,688 Total Expenditures 119,989,195$ 111,563,667$ 125,459,243$ 59,552,649$ 2,174,663$ (1)Includes Council actions through January 2020 (2)Numbers do not reflect projected spend of prior year encumbrances Expenditures 2018-19 Actual Results 2019-20 Adopted Budget (2) Projected Surplus/ (Deficit) for FY 2019-20: 2019-20 Amended Budget 2019-20 6 Month Actual Results 2019-20 Amended Budget (1) 2019-20 6 Month Actual Results Revenues 2018-19 Actual Results 2019-20 Adopted Budget Attachment 1 ATTACHMENT 2: FUNDS SUMMARIES SEWER ENTERPRISE FUND SUMMARY CHARGES FOR SVCS 29,900,342$ 30,874,960$ 36,254,677$ 15,225,601$ 36,254,677$ USE OF MONEY & PROPERTY 488,429 110,000 110,000 360 110,000$ OTHER FINANCING SOURCES - - 44,548,262 5,673,079 44,548,262$ OTHER REVENUES 5,213 - - 25,923 -$ TRANSFERS 651,572 4,500,000 27,165,014 6,171,257 27,165,014$ TOTAL REVENUES 31,045,555$ 35,484,960$ 108,077,953$ 27,096,221$ -$ 108,077,953$ PAYROLL 10,940,416$ 9,375,475$ 8,962,029$ 5,072,020$ 8,962,029$ SUPPLIES & SERVICES 26,075,155 20,207,859 85,123,796 18,864,013 75,000 85,198,796$ CAPITAL OUTLAY (13,755,428) - - - -$ DEBT SERVICE 838,647 5,704,928 5,704,928 4,239,116 5,704,928$ INTERDEPARTMENTAL CHARGES 1,591,306 1,589,299 1,589,299 794,649 1,589,299$ TOTAL EXPENDITURES 25,690,096$ 36,877,561$ 101,380,052$ 28,969,799$ 75,000$ 101,455,052$ Surplus/ (Deficit)5,355,459$ (1,392,601)$ 6,697,901$ (1,873,578)$ (75,000)$ 6,622,901$ CASH BALANCE 24,338,039 22,945,438 29,643,339 29,568,339 2019-20 Requested 2019-20 Projected (Amended + Requested) 2019-20 YTD 2019-20 Requested 2019-20 Projected (Amended + Requested) 2019-20 Amended 2019-20 YTD Revenues 2018-19 Actual 2019-20 Adopted 2019-20 Amended Expenses 2018-19 Actual 2019-20 Adopted Attachment 2 STORM WATER FUND SUMMARY FINES & FORFEITURES 2,700$ 5,000$ 5,000$ 700$ 5,000$ INTERGOVERNMENTAL 752,849$ 8,500,000$ 8,728,298$ 393,227$ 8,728,298$ CHARGES FOR SVCS 410,600$ 405,000$ 405,000$ 215,951$ 405,000$ USE OF MONEY & PROPERTY 39,477$ 5,000$ 5,000$ -$ 5,000$ TRANSFERS 1,449,650$ 1,135,156$ 1,580,944$ 471,857$ 1,580,944$ TOTAL REVENUES 2,655,276$ 10,050,156$ 10,724,243$ 1,081,736$ -$ 10,724,243$ PAYROLL 704,852$ 739,471$ 773,216$ 412,729$ -$ 773,216$ SUPPLIES & SERVICES 1,342,307 9,017,669 9,807,817 570,968 150,000 9,957,817$ CAPITAL OUTLAY (936,473) - - - - -$ INTERDEPARTMENTAL CHARGES 70,425 51,282 51,282 25,641 - 51,282$ TOTAL EXPENDITURES 1,181,111$ 9,808,422$ 10,632,316$ 1,009,339$ 150,000$ 10,782,316$ Surplus/ (Deficit)1,474,165$ 241,734$ 91,927$ 72,397$ (150,000)$ (58,073)$ CASH BALANCE 1,680,440 1,922,174 2,014,101 1,864,101 2019-20 Amended 2019-20 YTD Revenues 2018-19 Actual 2019-20 Adopted 2019-20 Amended Expenses 2018-19 Actual 2019-20 Adopted 2019-20 Requested 2019-20 Projected (Amended + Requested) 2019-20 YTD 2019-20 Requested 2019-20 Projected (Amended + Requested) EAST OF 101 TRAFFIC IMPACT FEE FUND SUMMARY USE OF MONEY AND PROPERTY 533,381$ -$ -$ -$ -$ OTHER REVENUES 8,304,581.78 - - 323,848.00 -$ TOTAL REVENUES 8,837,962.78$ -$ -$ 323,848.00$ -$ -$ INTERDEPARTMENTAL 2,652$ 2,745$ 2,745$ 1,372$ 2,745$ TRANSFERS OUT 701,659 4,395,448 8,509,061 161,323 425,000 8,934,061$ TOTAL EXPENDITURES 704,311$ 4,398,193$ 8,511,806$ 162,695$ 425,000$ 8,936,806$ Surplus/ (Deficit)8,133,652$ (4,398,193)$ (8,511,806)$ 161,153$ (425,000)$ (8,936,806)$ FUND BALANCE 20,579,285.61$ 16,181,093$ 7,669,287$ 7,244,287$ 2019-20 Requested 2019-20 Projected (Amended + Requested) 2019-20 YTD 2019-20 Requested 2019-20 Projected (Amended + Requested) 2019-20 Amended 2019-20 YTD Expenditures 2018-19 Actual 2019-20 Adopted 2019-20 Amended Revenues 2018-19 Actual 2019-20 Adopted ] ATTACHMENT 3: RECOMMENDED FY19-20 MID-YEAR ADJUSTMENTS MID-YEAR REQUESTS Account Fund Department GL Code Adjustment +/(-)Account Type Description of Item/Service General Fund 100 Fire 100-11710-4101 138,272.01 Expense Wildfire OES Response General Fund 100 Fire 100-11710-34041 138,272.01 Revenue Wildfire OES Response General Fund 100 Fire 100-11310-5035 13,220.00 Expense Emergency Preparedness Water and Meals Ready to Eat (MRE). General Fund 100 Public Works 100-13410-5005 50,000.00 Expense Genentech sign replacement. General Fund 100 Public Works 100-99999-9510 1,097,045.27 Expense-CIP Linden Ave Complete Streets (California to Aspen), Pedestrian & Bike Safety Improvements (Phase 1/ST1601-Design). General Fund 100 Public Works 100-99999-9510 402,954.73 Expense-CIP Linden / Spruce Ave Traffic Calming Improvements (Phase 2 /ST1602-Design). General Fund 100 Public Works 100-99999-9510 75,000.00 Expense-CIP Design ECR Medians (ST1805-Design) General Fund 100 Public Works 100-99999-9510 80,000.00 Expense-CIP Misc Traffic Improvement - Misc Studies, TAC Reviews and implementation costs (TR1904-Design) plus ADA curb ramps. General Fund 100 Non-Departmental 100-07801-5001 30,000.00 Expense Improve Weed Abatement/Median Maintenance Contract. General Fund 100 Non-Departmental 100-07801-5001 25,000.00 Expense Increased enforcement of Community Preservation Standards. General Fund 100 Non-Departmental 100-07801-5001 100,000.00 Expense Painting & preservation of Downtown historic Poles, traffic signals, Controller cabinet, bike racks, and other street furnishings. General Fund 100 Non-Departmental 100-07801-5001 40,000.00 Expense Delivery, installation, and monthly leasing for 20 Big Belly trash/Recycle units. General Fund 100 Non-Departmental 100-07801-5001 150,000.00 Expense On call staff augmentation for additional maintenance service. General Fund 100 Non-Departmental 100-07801-5001 80,000.00 Expense 10 Surveillance cameras for equipment, licenses and installation. Sewer Enterprise Fund 710 Public Works 710-13315-5001 75,000.00 Expense Contract services repair of Sewer main/laterals. Storm Water Fund 740 Public Works 740-13820-5001 150,000.00 Expense Contract services for storm main repairs. East of 101 Traffic Impact Fee Fund 820 Public Works 820-99999-9510 125,000.00 Expense-CIP E.Grand Bike Gap (new ST2003-Design) East of 101 Traffic Impact Fee Fund 820 Public Works 820-99999-9510 150,000.00 Expense-CIP South Airport BCDC Improvements (New ST2004- Design) East of 101 Traffic Impact Fee Fund 820 Public Works 820-99999-9510 150,000.00 Expense-CIP North Access Road (ST1806-Const) FY 2019-2020 Mid-Year Budget Presentation to the Budget Standing Committee of the City Council Janet Salisbury 24 FEBRUARY 2020 Attachment 4 AGENDA 1 Financial Highlights 2 General Fund Revenues 3 General Fund Expenditures 4 Mid-Year Budget Requests by Dept. 2 Financial Highlights *Excludes Measure W Sales Tax **Including previously committed reserves 1Financial Highlights •Anticipated annual $114.8 million* •Actual mid-year $ 48.4 million •Available General Fund Resources $127.6 million** Revenues •Anticipated annual $125.5 million •Actual mid-year $ 59.5 millionExpenditures •Projected General Fund Surplus $2,174,663 •Projected Additional Net Expenditures $2,143,220 •Difference $31,443 Revenue vs. Expenditures 3 Mid-Year FY19-20 General Fund Revenues 2General Fund Overview 4 $- $5,000,000.00 $10,000,000.00 $15,000,000.00 $20,000,000.00 $25,000,000.00 $30,000,000.00 $35,000,000.00 $40,000,000.00 FY18-19 Six Month Actual FY19-20 Six Month Actual FY19-20 Amended Budget General Fund Expenditures 5 3General Fund Overview $- $5,000,000.00 $10,000,000.00 $15,000,000.00 $20,000,000.00 $25,000,000.00 $30,000,000.00 $35,000,000.00 FY18-19 Six Month Actual FY19-20 Six Month Actual FY19-20 Amended Budget General Fund Mid-Year Budget Requests 6 4Mid-Year Budget Requests Fire Department Requests 1.Budget Neutral -$138,272 CAL OES reimbursable in-state mutual aid deployment to the 2019 Kincaid Fire 2.$13,220 Meals Ready to Eat (MRE) and bottled water for Emergency Operations Center Non-Departmental 1.$425,000 Clean Team 2020 General Fund Mid-Year Budget Requests (cont.) 7 4Mid-Year Budget Requests Public Works Department Requests 1.$50,000 Replacement of damaged ‘Birthplace of Biotechnology’ sign (Funds were generously donated to the City’s General Fund by Genentech) 2.$1,500,000 CIP Linden Avenue Complete Streets: Pedestrian, bike, and ADA improvements Transfers Out to Capital Improvement 1.$80,000 Traffic improvement study, review, and implementation 2.$75,000 Design of medians along El Camino Real between Spruce and Chestnut 3.Budget Neutral -$104,258 Gardiner Park update Other Funds Mid-Year Budget Requests 8 4Mid-Year Budget Requests City Housing Fund 1.Budget Neutral -$30,000 Homeless prevention via YMCA’s rent assistance program Sewer Enterprise Fund 1.$75,000 Repair of sewer main and laterals along S. Maple and Spruce Ave. Storm Water Fund 1.$150,000 Storm Water Fund -Long-term flood prevention measures near the end of San Bruno canal storm main owned and operated by the City E101 Traffic Impact Fee 1.$125,000 Fund Bay Trail required access route improvements 2.$150,000 Survey and design East Grand Ave. bicycle gap 3.$150,000 Improvements required by the BCDC along S. Airport Blvd. and Belle Aire Rd. QUESTIONS 9