HomeMy WebLinkAbout02.05.2024@400 SP Budget Standing Committee of the City CouncilMonday, February 5, 2024
4:00 PM
City of South San Francisco
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, CA
City Hall - City Manager Conference Room: 400 Grand Avenue, South
San Francisco, CA
Budget Standing Committee of the City Council
JAMES COLEMAN, Mayor
MARK ADDIEGO, Councilmember
Special Meeting Agenda
1
February 5, 2024Budget Standing Committee of the
City Council
Special Meeting Agenda
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Page 2 City of South San Francisco Printed on 4/10/2024
2
February 5, 2024Budget Standing Committee of the
City Council
Special Meeting Agenda
CALL TO ORDER
ROLL CALL
AGENDA REVIEW
PUBLIC COMMENTS- Comments are limited to items on the Special Meeting Agenda.
MATTERS FOR CONSIDERATION
Motion to approve the Minutes for the meeting of May 31st, 2023.1.
Report presenting Fiscal Year (FY) 2023-24 Mid-Year Financial Report as of
December 31, 2023, and proposed budget amendments for FY 2023-24 City
Operating and Capital Improvement Program (CIP) Budgets (Karen Chang, Director
of Finance)
2.
ADJOURNMENT
Page 3 City of South San Francisco Printed on 4/10/2024
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:24-118 Agenda Date:2/5/2024
Version:1 Item #:
Motion to approve the Minutes for the meeting of May 31st, 2023.
City of South San Francisco Printed on 2/2/2024Page 1 of 1
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CALL TO ORDER TIME: 1:00 p.m.
ROLL CALL PRESENT: Mayor Nicolas
Councilmember Addiego
AGENDA REVIEW
At the request of City Manager Ranals, Matters for Consideration Item No. 3 was moved to be heard
after Item No. 1.
REMOTE PUBLIC COMMENTS
None.
MATTERS FOR CONSIDERATION
1. Motion to approve the Minutes for the meeting of May 3, 2023.
Motion – Councilmember Addiego / Second – Mayor Nicolas: to approve the minutes. The motion
carried unanimously.
3. Report regarding the City of South San Francisco Operating Budget for Fiscal Year 2023-24.
(Karen Chang, Director of Finance)
Finance Director Chang provided an overview of the FY 2023-24 Operating Budget and discussed
presentations to the Council on June 16, 2023, and June 28, 2023. A high-level update on the City
Reserves was presented to the members. Councilmember Addiego recommended that payroll
expenses be included in upcoming presentations noting that after payroll expenses there is not a lot
of discretionary dollars left.
Director Chang presented the proposed revenue for FY 2023-24 of $140 million confirmed a shortfall
of about $8 million and recommended attrition of about $3 million across all departments. Mayor
Nicolas requested clarification on the process of attrition, and Director Chang provided an overview.
Councilmember Addiego, Deputy Finance Director Wong, Mayor Nicolas, and City Manager Ranals
discussed potential salary savings for unfilled positions within the city as well as department savings.
Mayor Nicolas and City Manager Ranals discussed the overall expenses and thanked Director of
Finance Chang for the presentation.
MINUTES
SPECIAL MEETING
BUDGET STANDING COMMITTEE
OF THE CITY OF SOUTH SAN FRANCISCO
WEDNESDAY, MAY 31, 2023
1:00 p.m.
City Hall, City Manager’s Conference Room
400 Grand Avenue, South San Francisco, CA
5
SPECIAL BUDGET STANDING COMMITTEE MEETING MAY 31, 2023
MINUTES PAGE 2
2. Report regarding proposed Capital Improvement Program for the fiscal year 2023-24
(Eunejune Kim, Director of Public Works/City Engineer, and Matthew Ruble, Principal
Engineer)
Principal Engineer Ruble presented the Proposed Capital Improvement Budget for FY 23-24 and
Public Facilities Projects – New Appropriation Requests and Common Greens project. Deputy
Director of Public Works Bockhaus provided an overview of future projects for the Department of
Public Works.
4. Report regarding proposed user fees for the Library | Parks and Recreation Community Civic
Campus and the Orange Memorial Park Sports Complex and amending the Master Fee
Schedule for Fiscal Year 2023-2024. (Greg Mediati, Parks and Recreation Director)
Parks and Recreation Business Manager O’Brien presented the FY 2023-24 Sports Programs and
Sports Facilities fees. City Manager Ranals reiterated the city’s commitment to the affordability of
all city programs.
ADJOURNMENT
Being no further business, Mayor Nicolas adjourned the meeting at 2:05 p.m.
Submitted by: Approved by:
Jazmine Miranda James Coleman
Assistant City Clerk Mayor
Approved by the Budget Standing Committee: / /
6
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:24-109 Agenda Date:2/5/2024
Version:1 Item #:2.
Report presenting Fiscal Year (FY)2023-24 Mid-Year Financial Report as of December 31,2023,and proposed
budget amendments for FY 2023-24 City Operating and Capital Improvement Program (CIP)Budgets (Karen Chang,
Director of Finance)
RECOMMENDATION
Staff requests that the Budget Standing Subcommittee of the City of South San Francisco (“City”)review the FY
2023-24 Mid-Year Financial Report and the proposed budget amendments for FY 2023-24;and refer the items to
the February 28, 2024, City Council meeting for full Council acceptance.
BACKGROUND/DISCUSSION
Due to the formatting limitations of the City’s Agenda Management platform,the full staff report accompanying
this agenda item is being attached as Attachment 1 of this report.
Attachments:
1. Staff Report
2. FY 23-24 Mid-year GF Summary and Proposed Budget Adjustments
3. FY 23-24 Mid-Year Department Requests Summary
4. FY 23-24 Mid-year Department Revenue request Summary
5. FY 23-24 Mid-year CIP Budget Request Summary
6. FY 23-24 Mid-year budget presentation
City of South San Francisco Printed on 2/2/2024Page 1 of 1
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City of South San Francisco Page 1 of 12
File#: 24-109 Agenda Date: 02/05/2024
Version: 1 Item #: 2
Report presenting Fiscal Year (FY) 2023-24 Mid-Year Financial Report as of December 31, 2023,
and proposed budget amendments for FY 2023-24 City Operating and Capital Improvement
Program (CIP) Budgets (Karen Chang, Director of Finance)
RECOMMENDATION
Staff requests that the Budget Standing Subcommittee of the City of South San Francisco
(“City”) review the FY 2023-24 Mid-Year Financial Report and the proposed budget
amendments for FY 2023-24; and refer the items to the February 28, 2024 City Council
meeting for full Council acceptance.
BACKGROUND/DISCUSSION
The City Council approved the FY 2023-24 General, Enterprise and Internal Service Fund budgets
on June 28, 2023. The approved budgets feature the annual expenditure and resource allocation
plan that guides the implementation of City Council budget policies and priorities. The budget
provides funding direction for the broad range of services that meet the needs of the community
in accordance with City Council policy.
This financial review provides the mid-year budget update to the City Council for the current fiscal
year. Analysis of the revenues collected and all expenditures through December 31, 2023 measures
operational adherence to the budgetary allocation plan.
The adjusted budget incorporates current estimates for revenue and expenditure appropriations for
all funds as of December 31, 2023. The Mid-Year Financial Report as of December 31, 2023,
provides comparisons to the prior year and focuses on variances from the revenue and expenditure
plans and allocations contemplated in the budget.
I. Current Fiscal Year (FY 2023-24) Update
A. General Fund Revenues – 2nd Quarter
B. General Fund Expenditures – 2nd Quarter
C. Additional General Fund Revenue Amendment Request
D. Additional General Fund Appropriations Request
E. Additional Non-General Fund Appropriations Request
F. Additional Capital Improvement Plan Request (CIP)
G. American Rescue Plan Act (ARPA) Summary
II. Reserves Overview & Considerations
City of South San Francisco
Legislation Text
P.O. Box 711
(City Hall, 400 Grand Avenue)
South San Francisco, CA
8
City of South San Francisco Page 2 of 12
I. CURRENT FISCAL YEAR (FY2023-24) UPDATE
The General Fund finances the operations of the City and pays for basic municipal services. The
adjusted FY 2023-24 General Fund budget projects revenues totaling $143.1 million, which
included a one-time $5 million American Rescue Plan Act (ARPA) fund, and expenditures totaling
$153.9 million, including purchase order encumbrances from FY 2023-24, approved carryover
amounts, $3 million salary attritions and several City Council approved appropriation amendments
prior to December 2023.
The following sections show the revenue and expenditure results as of December 31, 2023.
A. General Fund Revenues – 2nd Quarter
The following table shows actual revenues as of December 31, 2023, with a comparative view of
where the City’s revenues were at the same time last year (December 31, 2022):
Table 1: FY 2022-23 vs. FY 2023-24 Revenues as of December 31
FY 2022-23 FY 2023-24
Adjusted Budget
Actual as of
12.31.22
% of
Budget
Adjusted Budget
Actual as of
12.31.23
% of
Budget
REVENUES
Taxes
Property Tax $45,804,769 $25,497,501 55.7% $47,980,000 $26,171,076 54.5%
Sales Tax 22,391,018 7,904,924 35.3% 23,351,500 7,901,633 33.8%
Transient Occupancy Tax 14,160,752 7,355,525 51.9% 14,910,000 5,641,871 37.8%
Other Tax 5,693,252 2,731,923 48.0% 6,950,000 1,672,719 24.1%
Franchise Fees 4,600,000 1,202,178 26.1% 4,600,000 1,274,907 27.7%
License and Permits 19,425,400 11,827,560 60.9% 16,962,894 6,853,938 40.4%
Fines & Forfeitures 710,824 397,865 56.0% 700,000 160,232 22.9%
Intergovernmental 4,337,199 882,432 20.3% 4,442,571 2,275,945 51.2%
Charges for Services
Planning 250,792 181,919 72.5% 510,000 241,305 47.3%
Fire 2,626,314 1,610,740 61.3% 2,728,000 1,516,191 55.6%
Park s & Recreation 2,846,248 1,696,122 59.6% 3,745,254 1,421,925 38.0%
Police 979,649 521,250 53.2% 1,246,670 538,855 43.2%
City Admin & Other 1,562,094 830,300 53.2% 1,989,347 1,011,078 50.8%
Use of Money & Property 5,453,469 3,496,844 64.1% 3,940,000 1,458,731 37.0%
Other Revenues 278,903 157,519 56.5% 337,826 91,563 27.1%
Transfers In 6,151,400 2,472,702 40.2% 8,704,289 813,414 9.3%
TOTAL REVENUES $137,272,083 $68,767,306 50.1% $143,098,351 $59,045,385 41.3%
As shown in the above table, projected revenue for FY 2023-24 is $143.1 million – approximately
$6.0 million more than the FY2022-23 adjusted budget. Actual revenue collections for the two
quarters ending December 31, 2023 is $10.0 million lower when compared with the prior year.
The following highlights the recommended adjustments to the FY2023-24 revenue budget.
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City of South San Francisco Page 3 of 12
1. Property Tax. Bay Area home values experienced a double-digit decline last year as
interest rates hit their highest levels since 2000 and tech layoffs rippled through the region.
However, property taxes are expected to remain stable due to the passage of Proposition
13 in 1978. Proposition 13 protects homeowners from massive increases as their home
value appreciates by capping the increase in assessed value of properties at 2% per year.
Properties are reassessed at market value only when they are sold or renovated. P roperty
tax comprises almost 40% of the General Fund’s total revenue. Property tax is allocated to
the City in two large installments (December and April). Our records show property tax
collections have reached 54.5% of our projection as of December 31, 2023. Due to the
October 2023 levy letter from the County Controller’s office, the estimated Excess
Educational Revenue Augmentation Fund (ERAF) revenue is $1.6 million higher than
budgeted. On the other hand, the unsecured and supplemental property taxes are expected
to fall short of the adopted budget. Therefore, staff recommends a $1.3 million increase in
the projections.
2. Sales Tax. There is a two-month lag from when sales taxes are remitted by businesses to
the California Department of Tax and Fee Administration (CDTFA) and when the CDTFA
remits the City’s share of sales tax revenues. Similar to the 2nd quarter of FY 2022-23, the
City received approximately one-third of the projected sales tax revenue for the entire fiscal
year. Since adoption of the FY 2023-24 budget, the City’s sales tax consultant revised their
projection to reflect a lower sales tax revenue due to a larger sales tax-generating business
leaving the City, lower gas prices, and other adjustments/reallocation. Staff recommends a
$1.4 million decrease to the sales tax category to be aligned with the City’s sales tax
consultant’s revised projection.
3. Transient Occupancy Tax (TOT). Post-pandemic travel levels have been strong. As of
December 31, 2023, the City recorded TOT revenues of $5.6 million. There is an
additional $1.4 million that will be posted later this month. Staff expects business travel
to pick up in 2024. However, based on current trends, staff recommends a $0.9 million
decrease to the projection.
4. Other Taxes. Other taxes include real property transfer tax, business license and
commercial parking tax. Second quarter year-to-date collection of commercial parking tax
and business license tax are in-line with prior year’s amounts. Business license taxes are
due on January 31, 2024 so we expect some large businesses to pay their business license
tax in the last week of January. Real property transfer tax is projected lower due to
slowdown in the real estate market. Staff recommends a $0.3 million decrease in our
projections.
5. Licenses & Permits. The Federal Reserve Bank raised interest rates by 5.25% over the
past two years to tame inflation. The higher interest rates significantly slowed down
economic growth in the housing and construction sectors. ECD is expecting less projects
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City of South San Francisco Page 4 of 12
to apply for permits in FY 2023-24, which will reduce the amount of permit fees paid to
the City. Staff recommends a $4.5 million decrease in our projections.
6. Service Charges. This revenue stream includes fees charges by various departments for
services provided to the public. Due to the increase in paramedic call volume and changes
to the California Department of Health Care Services supplemental program, Fire
anticipates an increase of $1.2 million in paramedic service fees bringing the total to $3.7
million for FY 2023-24. Staff recommends a $1.4 million increase in the projections.
7. Intergovernmental. The City received $2.3 million in grants and program reimbursement
from other governmental entities for the 2nd quarter year-to-date. Staff recommends a $1.2
million increase in the projections.
8. Use of Money and Property. With the higher interest rate environment, the City projects
additional interest earnings from investments. In FY 2022-23, the City sold two properties
(100 Longford & 201 Baden Ave) for a total of $1.8 million. The City does not expect any
sale of property in FY 2023-24. Rental income is within budget expectations. Staff
recommends a $0.5 million increase to the projections.
If approved by the Council, the above changes would result in decreasing the overall revenue
budget for FY 2023-24 by $2.8 million from $143.1 million to $140.3 million.
B. General Fund Expenditures – 2nd Quarter
The following table shows the actual expenditures by Department that have been recorded through
December 31, 2023:
Table 2: FY 2022-23 vs. FY 2023-24 Expenditures as of December 31
Expenditures
FY 2022-23 FY 2023-24
Adjusted
Budget
Actuals as
of 12/31
% of
budget
Adjusted
Budget
Actuals as
of 12/31
% of
budget
City Council
Payroll $196,886 $63,937 32.5% $189,027 $78,338 41.4%
Supplies & Services 50,560 29,758 58.9% 36,560 28,483 77.9%
Interdepartmental Charges 13,204 6,390 48.4% 43,900 21,455 48.9%
Total 260,649 100,084 38.4% 269,486 128,276 47.6%
City Clerk
Payroll 909,334 385,086 42.3% 1,001,300 399,151 39.9%
Supplies & Services 208,428 51,192 24.6% 208,428 36,637 17.6%
Interdepartmental Charges 36,686 17,978 49.0% 55,282 26,789 48.5%
Total 1,154,449 454,256 39.3% 1,265,011 462,578 36.6%
City Treasurer
Payroll 63,351 11,805 18.6% 31,230 11,680 37.4%
Supplies & Services 102,060 21,198 20.8% 102,060 44,708 43.8%
Interdepartmental Charges 2,493 1,246 50.0% 138 69 50.0%
Total 167,904 34,249 20.4% 133,428 56,457 42.3%
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City of South San Francisco Page 5 of 12
Expenditures
FY 2022-23 FY 2023-24
Adjusted
Budget
Actuals as of
12/31
% of
budget
Adjusted
Budget
Actuals as of
12/31
% of
budget
City Attorney
Supplies & Services 937,808 489,962 52.2% 1,100,717 377,391 34.3%
Interdepartmental Charges 2,482 1,191 48.0% 8,108 3,939 48.6%
Total 940,290 491,153 52.2% 1,108,825 381,330 34.4%
City Manager
Payroll 2,863,694 1,513,695 52.9% 3,243,094 1,248,628 38.5%
Supplies & Services 2,344,542 392,169 16.7% 1,633,659 282,160 17.3%
Interdepartmental Charges 116,360 57,574 49.5% 144,372 70,771 49.0%
Total 5,324,597 1,963,437 36.9% 5,021,126 1,601,560 31.9%
Finance
Payroll 3,172,557 1,413,781 44.6% 3,333,330 1,323,979 39.7%
Supplies & Services 1,096,083 101,111 9.2% 1,047,941 80,267 7.7%
Interdepartmental Charges 136,445 66,605 48.8% 138,463 65,456 47.3%
Total 4,405,085 1,581,496 35.9% 4,519,734 1,469,702 32.5%
Non expense/Dept
Payroll 608,000 - 0.0% - -
Supplies & Services 1,544,698 903,046 58.5% 1,394,367 485,196 34.8%
Transfers 700,000 250,000 35.7% 500,000 - 0.0%
Total Non-Expense/Dept. 2,852,698 1,153,046 40.4% 1,894,367 485,196 25.6%
Human Resources
Payroll 2,104,444 914,366 43.4% 2,365,049 1,110,781 47.0%
Supplies & Services 513,299 204,604 39.9% 575,111 100,143 17.4%
Interdepartmental Charges 66,366 32,618 49.1% 55,192 26,276 47.6%
Total 2,684,109 1,151,588 42.9% 2,995,351 1,237,200 41.3%
Economic & Comm Development
Payroll 5,749,215 2,930,605 51.0% 5,487,087 3,139,924 57.2%
Supplies & Services 9,477,181 2,381,792 25.1% 6,469,550 2,004,384 31.0%
Capital Outlay 113,400 - 0.0% 113,381 -
Interdepartmental Charges 269,834 131,222 48.6% 368,615 175,685 47.7%
Total 15,609,630 5,443,619 34.9% 12,438,633 5,319,993 42.8%
Fire
Payroll 27,312,449 17,439,241 63.9% 28,172,922 17,482,689 62.1%
Supplies & Services 3,657,640 632,209 17.3% 2,825,938 1,076,913 38.1%
Capital Outlay 400,000 - 400,000 -
Interdepartmental Charges 2,054,628 943,235 45.9% 2,250,984 1,101,398 48.9%
Total 33,424,717 19,014,685 56.9% 33,649,844 19,661,000 58.4%
Police
Payroll 30,438,959 17,656,629 58.0% 32,464,166 18,209,039 56.1%
Supplies & Services 1,690,477 616,307 36.5% 1,857,124 730,501 39.3%
Interdepartmental Charges 2,381,864 1,177,860 49.5% 2,630,415 1,284,708 48.8%
Total 34,511,300 19,450,797 56.4% 36,951,705 20,224,247 54.7%
Public Works
Payroll 4,496,168 2,219,275 49.4% 4,765,838 2,612,909 54.8%
Supplies & Services 2,885,962 809,356 28.0% 7,020,350 1,280,217 18.2%
Capital Outlay 312,000 - 271,564 -
Interdepartmental Charges 909,575 451,538 49.6% 1,763,775 874,306 49.6%
Total 8,603,705 3,480,169 40.4% 13,821,528 4,767,432 34.5%
Library
Payroll 5,930,595 2,838,554 47.9% 6,505,083 3,032,800 46.6%
Supplies & Services 1,078,235 367,191 34.1% 1,057,204 553,497 52.4%
Interdepartmental Charges 264,914 118,771 44.8% 743,808 339,970 45.7%
Total 7,273,745 3,324,516 45.7% 8,306,095 3,926,266 47.3%
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City of South San Francisco Page 6 of 12
Expenditures
FY 2022-23 FY 2023-24
Adjusted
Budget
Actuals as of
12/31
% of
budget
Adjusted
Budget
Actuals as of
12/31
% of
budget
Parks and Recreation
Payroll 16,382,265 7,959,678 48.6% 19,171,702 8,664,587 45.2%
Supplies & Services 5,384,639 1,836,880 34.1% 6,556,908 2,013,711 30.7%
Capital Outlay - - 79,112 108,750
Interdepartmental Charges 1,106,247 550,569 49.8% 1,301,683 644,880 49.5%
Total 22,873,152 10,347,127 45.2% 27,109,406 11,431,928 42.2%
CIP
Transfers 3,833,270 161,864 4.2% 4,375,873 - 0.0%
Total 3,833,270 161,864 4.2% 4,375,873 - 0.0%
Tota General Fund
Expenditures
$143,919,299
$68,152,087
47.4%
$153,860,411
$71,153,164
46.2%
Information Technology*
Payroll $2,127,121 $918,632 43.2% $2,298,886 $1,039,228 45.2%
Supplies & Services 3,104,214 766,050 24.7% 2,726,025 1,016,296 37.3%
Interdepartmental Charges 10,469 5,235 50.0% 12,889 6,444 50.0%
Total $5,241,804 $1,689,917 32.2% $5,037,801 $2,061,968 40.9%
* Non-General Fund; budgeted as internal service fund in Fund 785.
C. ADDITIONAL GENERAL FUND REVENUE AMENDMENT REQUEST
The following are additional General Fund revenue amendment requests totaling $1,426,238
Economic and Community Development $150,000
Increase in Building Permit collected fee (Master Fee No. 6.57)
Fire Department $1,275,000
Paramedic Service Fee Increase- $1,200,000
Fire Plan Check Fee $75,000
Transfer In from ARPA $ 1,238
Residual balance for revenue loss category
D. ADDITIONAL GENERAL FUND APPROPRIATIONS REQUEST
The following are additional General Fund expenditure appropriations requests totaling
$1,049,600:
Economic and Community Development $75,000
Construction Coordination Consultant (2-year contract)- $75,000
Fire Department $689,600
Contracts for Fire Plan Reviews- $175,000
Department of Health Care Services program- $506,000
Ambulance billing fees- $8,600
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City of South San Francisco Page 7 of 12
Payroll (position change request):
Upgrade 1.0 FTE Administrative Assistant I to Management Analyst I with no fiscal
impact in FY2023-24.
Parks and Recreation Department $285,000
One-Time Contractual landscape services (Oakmont Dr. & Olympic Dr.) $125,000
Ongoing Contractual landscape services (Oakmont Dr. & Olympic Dr.) $10,000
Police Department building window washing services- $40,000
Purchase of Westborough Blvd privately owned parcels along eastbound shoulders-
$110,000
The ongoing impact of the mid-year requests beyond FY2023-24 has been estimated to be an
additional $639,600 in supplies and professional services.
E. ADDITIONAL NON-GENERAL FUND APPROPRIATIONS REQUEST
The following are the additional non-General Fund expenditure appropriations requests totaling
$1,147,908 from various sources.
1. American Rescue Plan Act Fund (201) $1,238
Transfer the residual balance for Revenue Loss category to General Fund
2. West Park Maintenance District Fund (Fund 231) $370,700
Adjustment to full-time payroll salaries calculation- $159,800
Adjustment to part-time payroll salaries calculation- $11,100
Adjustment to benefit calculation- $199,800
3. Stonegate Ridger Maintenance Fund (Fund 232) $20,170
Adjustment to full-time payroll salaries calculation- ($630)
Adjustment to benefit calculation- $(19,540)
4. Willow Gardens Maintenance Fund (Fund 233) $4,350
Adjustment to full-time payroll salaries calculation- $1,450
Adjustment to benefit calculation- $2,900
5. West Park Maintenance District 1 & 2 Fund (Fund 234) $21,450
Adjustment to full-time payroll salaries calculation- ($1,240)
Adjustment to benefit calculation- $20,210
6. Developer Deposits Fund (Fund 270) $125,000
ECD- TDM Enforcement and Trip Cap Implementation- $50,000
ECD- Objective Architectural Standards Updates- $75,000
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City of South San Francisco Page 8 of 12
7. Commercial Linkage Fee (Fund 823) $300,000
ECD-Preparing sites for housing suitability-$100,000
ECD-Property acquisition due diligence and negotiations- $200,000
8. Storm Water Fund (Fund 740) $150,000
Public Works- Storm line repairs identified in Storm Drain Master Plan- $150,000
9. Park Acquisition Fund (Fund 805) $100,000
Parks and Rec-Parkland acquisition due diligence- $100,000
10. PEG Equipment & Access Fund (Fund 786) $55,000
Upgrade City Manager conference room for Special City Council meetings- $30,000
Closed caption services for City Council meetings- $25,000
F. MID-YEAR CAPITAL IMPROVEMENT PLAN REQUEST (CIP)
The following are the additional CIP project appropriation requests with their corresponding
funding sources, amounting to ($610,668):
1. SSF Shoreline Protection and Connectivity (New project sd2402) $30,000
Funding Source: East of 101 Traffic Impact Fee
Funding request is for the pre-design phase of this project to fund consultant for Caltrans
grant application.
2. Storm Drain Master Plan (Existing project sd2301) $500,000
Funding Source: Infrastructure Reserve
These funds are needed for additional storm drain cleaning required for conditional
assessment.
3. Parking District Lot Rehabilitation (Existing project pf2402) $100,000
Funding Source: Parking District Fund
Additional funds to rehabilitate parking lots based on engineering estimates. This is for
rehabilitation (surface seal asphalt pavement treatment and new striping) of six (6) City
Public Parking lots in the downtown area.
4. Adaptive Traffic Control System (Existing project tr1901) $100,000
Funding Source: Citywide Traffic Impact Fee
Additional funds requested for plan, design, and implementation of adaptive traffic control
in West of 101.
5. Junipero Serra Class 4 Bike Lanes (New project tr2414) $50,000
Funding Source: Citywide Traffic Impact Fee
Additional funding is required for the TDA Grant match.
15
City of South San Francisco Page 9 of 12
6. Colma/SSF: El Camino Real Bicycle and Pedestrian Improvement Project
(PSR_PDS) and (PAED) (New project tr2415) $100,000
Funding Source: Citywide Traffic Impact Fee
Opportunity to follow through on part of the Bike/Ped Master Plan. Colma is leading the
project and has secured a TA Grant. Caltrans asked to further previous project extends to
Hickey Blvd & ECR for project effectiveness/continuity.
7. Caltrain Station Enhancement/Karyl Matsumoto Plaza
(Existing project st1603) $120,000
New Funding Source: Park Construction Fees
Benefits Agreement for 200 Airport. It includes ongoing maintenance of the new plaza and
contributions to construction that included $120,000 payment for plaza improvements.
8. Sewer Master Plan (Existing Project ss1801) $100,000
Funding Source: East of 101 Sewer Impact Fees
These funds will be used for additional design costs to update sewer model and report.
9. Broadband Fiber Optic Expansion (Existing Project pf2210) $289,332
Funding Source: American Rescue Plan Act (ARPA)
These funds will be used for installation of fiber optic cables in new City-owned conduits
from 550 North Canal to Skyline Blvd in the Westborough Area to provide the middle mile
for the carriers to connect to the last mile in the Westborough area.
The following is a request for consolidating projects:
10. Citywide School Traffic Calming Improvement Project ($600,000)
Original- existing project tr2405
Funding Source: Citywide Traffic Impact Fee
This project will be combined with existing project st2402. The funding source will still be
Citywide traffic Impact fee. This will be an additional funding source to existing project
st2402 (2024 Surface Seal Project).
11. 2024 Surface Seal Project (Existing project st2402) $600,000
New/Additional Funding Source: Citywide Traffic Impact Fee
Requesting Citywide Traffic Impact Fee as an additional funding source for this project.
Combining tr2405 (Citywide School Traffic Calming Improvement project) to st2402. The
funds will be utilized for the traffic calming improvements and tracked accordingly.
The following is a request to remove funding from existing project:
12. Transit Village Park (Existing project pk2101) ($2,000,000)
Funding Sources: Park Land Acquisition Fee and Park Land Construction
Alternative sites for a park are still being considered. Funding is not needed currently.
Should a site be found, funding will be requested from the City Council separately.
16
City of South San Francisco Page 10 of 12
G. AMERICAN RESCUE PLAN ACT (ARPA)
In June 2022, the City received the second half tranche of its $12.3 million American Rescue Plan
Act financial award. The first half was received in June 2021. Table 3 below shows the progress
of allocation of these funds to various projects and purposes:
Table 3: ARPA Funded Project Summary
The table above shows that, to date, $11.99 million of ARPA funds has been appropriated. The
cell highlighted in yellow is the request for the mid-year review – 1) to allocate $1,238 to General
Government services to fully utilize the $10 million under the Revenue Loss Category and 2) to
add $289,332 ARPA funding to the Broadband Expansion project.
II. RESERVES OVERVIEW & CONSIDERATIONS
In FY 2022-23, General Fund revenues, excluding Measure W, were $146.5 million. In keeping
with the City’s Reserve Policy of maintaining a minimum of 20 percent of operating revenues and
following the Government Finance Officers Association’s (GFOA) best practice, the City’s
General Fund reserves levels were increased by approximately $4.2 million, from $25.1 million to
$29.3 million. This General Reserve amount does not change during the fiscal year. The Pension
Stabilization Reserve was established by Council and does not change unless further action is
taken. It remains invested and managed by the City’s third-party investment manager.
After meeting the reserves requirement noted above, Table 4 below shows a summary of the City’s
official reserves as of June 30, 2023:
Table 4: City Reserves Summary as of 6-30-2023
General Reserves (20%) $29,298,000
Pension Stabilization Reserves 5,596,000
Infrastructure Reserves 8,194,000
Total Reserve Levels $43,088,000
Available Unassigned GF Fund Balance 20,344,000
Reserves & Surplus Fund Balance $63,432,000
Projects
Total
Appropriations
to date
Expenditures
to date thru
12-31-2023
Remaining
Unspent
Funds
(appropriated)
FY2023-24 Mid
Year Proposed
budget Total
General Government Services 9,517,373 9,380,645 136,728 1,238 9,518,611
Guaranteed Income Program 1,000,000 1,000,000 1,000,000
Broadband Expansion - Westborough Neighborhood (CIP)1,000,000 10,391 989,609 289,332 1,289,332
The Spit/Oyster Point Sea Level Rise Protection (CIP)110,000 110,000 110,000
SAMCEDA Restaurant Grants 260,000 260,000 260,000
Jobs for Youth Program (summer 2021)36,495 36,495 36,495
Shop Local Gift Cards 64,503 64,503 64,503
TOTAL 11,988,371 10,862,034 1,126,337 290,570 12,278,941
17
City of South San Francisco Page 11 of 12
Table 5 below shows a breakdown of FY 2023-24 Infrastructure Reserve appropriations to date as
well as inflows of revenues. It also includes additional mid-year requests, detailed in previous
sections of this report:
Table 5: FY2023-24 Infrastructure Reserve Activities & Balance
Item Amount
FY2022-23 Balance $20,229,000
Add: Developer Contributions 250,000
Total $20,479,000
Less: YTD Appropriation
FY 2023-24 CIP project funding $4,050,000
Downpayment Assistance Program 1,513,000
Previously funded CIP projects 10,186,000
Total appropriation $15,749,000
Mid-year Requests $500,000
Net IR activities after Mid-year $16,249,000
Available Reserve Balance after Mid-Year $4,230,000
Table 6 below shows the impact of the General Fund budget for FY 2023-24, the effect of year-
to-date budget amendments already approved by Council, the mid-year appropriations requests
and revenue updates detailed in this report. The recommended revenue and expenditure budget
updates are projected to result in a deficit of approximately $5.9 million.
Table 6: Projected General Fund Revenue and Expenditure Summary
Reserve for Encumbrances rollover $8,661,000
Adopted Budget Surplus $9,000
- FY 2023-24 Net Budget Adjustments (10,771,000)
+ Mid-Year Revenue Adjustments (2,749,000)
- Mid-Year Appropriation Requests (1,050,000)
Total Adjustments (14,561,000)
FY 2023-24 Projected Deficit $5,900,000
18
City of South San Francisco Page 12 of 12
Conclusion
The Federal Reserve bank continues to raise interest rates to tame inflation and slow-down
economic spending. With the higher interest rate environment, the City is experiencing a decrease
in general fund revenues in the 1st half of FY 2023-24. Revenues from licensing and permits,
sales tax, and transient occupancy tax are significantly lower than projected while other categories
are coming in-line or slightly better than expected. As a result, staff consider it necessary to reduce
the overall revenue budget for FY 2023-24 by $2.8 million from $143.1 million to $140.3 million
by making the adjustments detailed in this report.
Economists are projecting the Federal Reserve Bank will start cutting rates as soon as Ma y 2024.
Staff remain cautiously optimistic and believe some revenue streams may level off somewhat from
the current continued downward trajectory, particularly in TOT and sales tax. Finance has
communicated to the other departments to close purchase orders for projects that have already
been completed, review existing encumbrances, and use salary savings from vacancies to monitor
department expenditures.
The City has healthy financial reserves, as well as an unassigned fund balance available in the
General Fund which can be used to fund one-time projects and the short-term shortfall. Staff will
continue to closely monitor the revenue and expenditure status in the coming months. Finance
will evaluate the revenue enhancement options and cost cutting measures that can help to achieve
long-term fiscal sustainability. Staff will incorporate the findings into the FY 2024-25 budget
preparation.
Staff recommends that the Budget Standing Committee accept the FY 2023-24 Mid-year financial
update and budget amendment requests, and refer this report to the February 28, 2024 Council
meeting for full Council acceptance.
19
ATTACHMENT 2
FY 2023-24 General Fund Proposed Budget Adjustments
Actual Adopted Budget
Approved
Budget
Adjustment Per
Council Action Adjusted Budget
Proposed
Adjustment
Proposed
Amended Budget
Taxes
Property Tax 54,041,118 47,980,000 -47,980,000 1,300,000 49,280,000
Sales Tax 21,735,087 23,351,500 -23,351,500 (1,400,000)21,951,500
Transient Occupancy Tax 16,357,104 14,910,000 -14,910,000 (910,000)14,000,000
Other Tax 8,059,817 6,950,000 -6,950,000 (300,000)6,650,000
Franchise Fees 5,240,637 4,600,000 -4,600,000 -4,600,000
License and Permits 20,467,645 16,962,894 -16,962,894 (4,500,000)12,462,894
Fines & Forfeitures 757,019 700,000 -700,000 -700,000
Intergovernmental 3,558,740 3,139,827 1,302,744 4,442,571 1,200,000 5,642,571
Charges for Services
Planning 486,672 510,000 -510,000 150,000 660,000
Fire 4,481,907 2,728,000 -2,728,000 1,200,000 3,928,000
Parks & Recreation 3,845,325 3,235,240 510,014 3,745,254 -3,745,254
Police 1,238,672 1,246,670 -1,246,670 -1,246,670
City Admin & Other 1,620,612 1,989,347 -1,989,347 -1,989,347
Use of Money & Property (340,684)3,940,000 -3,940,000 510,000 4,450,000
Other Revenues 353,379 337,826 -337,826 -337,826
Transfers In 5,283,683 7,581,177 1,123,112 8,704,289 1,238 8,705,527
TOTAL REVENUES 147,186,733 140,162,481 2,935,870 143,098,351 (2,748,762)140,349,589
EXPENDITURES
City Council 241,595 269,486 -269,486 -269,486
City Clerk 1,027,826 1,265,010 -1,265,010 -1,265,010
City Treasurer 35,280 133,427 -133,427 -133,427
City Attorney 1,220,059 1,108,825 -1,108,825 -1,108,825
City Manager 3,819,858 4,931,075 90,051 5,021,126 5,021,126
Finance 3,089,871 3,992,281 527,453 4,519,734 -4,519,734
Non expense/Dept 9,357,381 1,894,367 -1,894,367 1,894,367
Human Resources 2,221,159 2,884,524 110,827 2,995,351 -2,995,351
Economic & Comm Development 11,770,930 8,499,933 3,938,700 12,438,633 75,000 12,513,633
Fire 35,512,509 32,761,869 887,974 33,649,843 689,600 34,339,443
Police 36,282,832 36,838,240 113,466 36,951,706 -36,951,706
Public Works 7,936,330 11,954,045 1,867,483 13,821,528 13,821,528
Library 6,475,274 8,044,806 261,289 8,306,095 8,306,095
Parks and Recreation 20,503,316 24,675,441 2,433,966 27,109,407 285,000 27,394,407
Transfers Out 688,940 900,000 3,475,873 4,375,873 4,375,873
TOTAL EXPENDITURES 140,183,160 140,153,329 13,707,082 153,860,411 1,049,600 154,910,011
Revenue in excess of Expenditures 7,003,573 9,152 (10,771,212)(10,762,060)(3,798,362)(14,560,422)
Information Technology*3,770,987 4,311,906 929,898 5,037,801 -5,037,801
* Non-General Fund: budgeted as internal service fund in Fund 785
FY 2023-24
REVENUES
20
Dept Funding Source Fund Description of Item/Service Costs +/(-) Justification/Purpose
ECD General Fund 100
Construction Coordination
Consultant - Two year contract
through July 1, 2025 75,000.00
Request for allocation of Building Permit collected fee (Master Fee
No. 6.57) into revenue account 100-10410-35103 to fund
professional services contract
FIRE General Fund 100
Administrative Assistant 1 to
Management Analyst 1 -
Cost differential of hiring (in Q3 of fiscal year) a Management
Analyst I rather than an Administrative Assistant I. Ongoing fiscal
impact is eastimated to be $50,000 at step 2.
FIRE General Fund 100 Contracts for Fire Plan Reviews 175,000.00
Building construction is more active than was projected, there are
more complicated projects and staffing in Fire Prevention has been
low leading to more plans being sent out for review and creating
higher expenses (contracted services for Fire Plan Reviews)
FIRE General Fund 100 DHCS Program 506,000.00
Funds needed to participate in the mandatory DHCS program,
called PP-GEMT-IGT. This program has increased ambulance billing
revenue
FIRE General Fund 100 Ambulance Billing Fees 8,600.00
Vendor Wittman is projected to recover $3.7M (vs original
projection of $2.5M) in ambulance billing for SFFD revenue;
Wittman's fee is 4% of what is recovered (projected $152K). Vendor
Resolve is projected to recover $100K in ambulance billing for
SSFFD revenue; Resolve's fee is 30% of what is recovered (projected
$35K). With encumbered POs and current budget we anticipate this
request will fill the delta.
PARKS & REC General Fund 100 Contractual lanscape services 125,000.00
One-Time: Perform tree pruning and removal of hazardous trees on
remnant parcels on Westborough (at Oakmont Dr. & Olympic Dr.)
PARKS & REC General Fund 100 Contractual lanscape services 10,000.00 On going funding for the maintenance of the aquired parcels on
Westborough (at Oakmont Dr. & Olympic Dr.)
PARKS & REC General Fund 100 PD Window Washing 40,000.00
Window washing is need on the interior and exterior of the new PD
building. We received quotes from Swinerton and Frank and
Grossman to perform the cleaning.
PARKS & REC General Fund 100
Purchase of Westborough
Boulevard privately owned parcels
along eastbound shoulder
110,000.00
Funds are needed to acquire privately owned parcels along
Westborough Boulevard, between Olympic Drive and Oakmont
Drive. Properties to be sold by San Mateo County lien sale. Staff
report to City Council on this topic on January 10, 2024 via ECD.
ECD
Developer
Deposits 270
TDM Enforcement and Trip Cap
Implementation 50,000.00
Request for funding from collected General Plan Maintenance Fee
(Master Fee No. 6.66) to finalize TDM Enforcement and Trip Cap
Implementation and Monitoring Program. To implement General
Plan vision and City Council objectives.
ECD
Developer
Deposits 270
Objective Architectural
Standards/Ornamentation Update 75,000.00
Request for funding from collected General Plan Maintenance Fee
(Master Fee No. 6.66) to implement General Plan vision and City
Council objectives
PUBLIC WORKS Storm Water 740
Storm line repairs identified in
Storm Drain Master Plan. 150,000.00
Contractual services for repairs to city storm drain lines identified in
Storm Drain Master Plan. (Storm Maintenance - 740-13820-5001)
FY2023-24 Mid-Year (Expense Requests)
FY 2023-24 Mid-Year Request - All Funds Attachment 3
Page 1 21
Dept Funding Source Fund Description of Item/Service Costs +/(-) Justification/Purpose
FY2023-24 Mid-Year (Expense Requests)
IT
PEG Equipment &
Access 786
Upgrade City Manager Conference
Room For Special City Council
Meetings.30,000.00
The purpose of this item is to upgrade the City Manager Conference
Room with improved audio and video equipment. The City will
install an 80" TV, with high end camera and wireless mics. PEG
fund are 5% of franchise fees provided by Comcast, ATT and
Astound. These funds can only be used for meeting room
improvements.
IT
PEG Equipment &
Access 786
Closed Caption services for City
Council Meetings. 25,000.00
The purpose of this item is to provide closed caption functionality
for City Council and Planning Commission meetings. IT
recommends using PEG funds which are 5% of franchise fees
provided by Comcast, ATT and Astound. These funds can only be
used for meeting room improvements.
PARKS & REC Park Acquisition
Fund 805 Parkland Acquisition Due diligence 100,000.00
Surveying, legal support, planning efforts related to potential
acquisition of parkland
ECD
Commercial
Linkage 823 Remediation 100,000.00 Preparing sites for housing suitability
ECD
Commercial
Linkage 823
Property acquisition due dilligence
and negotiations 200,000.00
Consultant support for evaluating (and acquiring) sites suitable for
housing
Expenses
Funding Sources Yes (ongoing)Yes (one-time) YES Total
General Fund 639,600.00 410,000.00 1,049,600.00
Developer Deposits - 125,000.00 125,000.00
PEG Equipment &
Access 25,000.00 30,000.00 55,000.00
Park Acquisition
Fund - 100,000.00 100,000.00
Commercial Linkage - 300,000.00 300,000.00
Storm Water - 150,000.00 150,000.00
Total Yes (all funds) 664,600.00 1,115,000.00 1,779,600.00
FY 2023-24 Mid-Year Request - All Funds Attachment 3
Page 2 22
Dept Fund Description of Item/Service Costs +/(-) Justification/Purpose
FIRE
General Fund
100 Paramedic Service Fees 1,200,000.00
With the increased call volume and DHCS Program supplement, we
have seen an increase in revenue and anticipate a total of $3.7M for
the current fiscal year
FIRE General Fund 100 75,000.00 Fire Plan Check Fee
ECD
General Fund
100
Construction Coordination for
Active Building Permit to fund
construction coordination
consultant 150,000.00
Building Permit collected fee (Master Fee No. 6.57) into revenue
account 100-10410-35103 to fund professional services contract
1,425,000.00
Requests by
Department: YES (ONGOING) yes (One-time)
FIRE -1,275,000.00
ECD 150,000.00 -
Total 150,000.00 1,275,000.00
FY2023-24 Mid-Year (Revenue Amendments)
FY 2023-24 Mid-year Revenue Adjustment Request Attachment 4
23
FY 2023-24 Mid-Year CIP Requests Attachment 5
New Project Funding Source Title Project Name Justification Project Description Amount
Requested
Consequence
(If not funded, what
happens?)
No ARPA Broadband Expansion
Broadband is one of the eligible category to use
the ARPA funding. The city will be able to fully
committed all ARPA money and provide the
needed funding for this project.
Installation of fiber optic cables in new City-owned
conduits from 550 North Canal to Skyline Blvd in the
Westborough Area to provide the middle mile for the
carriers to connect to the last mile in the Westborough
area
$ 289,332
No Citywide Traffic Impact Fees Adaptive Traffic
Control
Funds for West of 101 $ 100,000 ADC West of 101 will be
delayed until Fall 2024.
Yes Citywide Traffic Impact Fees
Junipero Serra Class 4
Bike Lanes TDA Grant Match $ 50,000
Could be done seperately as a
budget amendment in March
Yes Citywide Traffic Impact Fees
Colma/SSF: El Camino
Real Bicycle and
Pedestrian Improvement
Project (PSR_PDS) and
(PAED)
Opportunity to follow through on part of the
Bike/Ped Master Plan. Colma is leading project
and has secured a TA Grant.Caltrans asked to
further previous project extentes to Hickey Blvd
& ECR for project effectiveness/continuity.
PSR-PDS and PAED Phases $ 100,000
Would miss out on TA 90% match
and Colma coordinating the
project (reduced staff time)
No Citywide Traffic Impact Fees Citywide School Traffic
Calming Improvement
Project
($ 600,000)
No Citywide Traffic Impact Fees 2024 Surface Seal
Project (Zone 5)
To introduce a new funding source to the
project with potential transfer from project
tr2405 (Citywide School Traffic Safety
improvements) to build tr2405 improvements
as part of a change order to st2302.
$ 600,000
No East of 101 Sewer Impact Fees Sewer Master Plan Additional design cost to update sewer model
and report.
The Sanitary Sewer Master Plan (SSMP) will evaluate its
sanitary sewer system, identify deficiencies that can
cause overflows, specify preventive maintenance
practices, and develop a list of repair and replacement
projects.
$ 100,000
Updates to the SSMP will be placed
on hold affecting planning on
future projects.
Yes East of 101 Traffic Impact Fees
South San Francisco
Shoreline Protection and
Connectivity Project Applying for Caltrans grant that is due January
2024. Need funds mid-year to fund consultant
Grant application
Feasibility study to investigate installing sea level rise
preventative measures in the Bay as well as connecting
Interstate 380 to the Oyster Point area to protect the
community.$ 30,000
At minimum need $18k mid year to
pay consultant conducting grant
propsal
No Infrastructure Reserves Storm Drain Master Plan Additional Storm Drain Cleaning required for
condition assessment
Hydraulic model of storm drain collection and
conveyance system. Additionally, this project will
conduct a condition assessment and map all strom
drains. This project will determine deficiencies within the
city's storm drain system and develop a future capital
improvement program for the storm drain system. The
master plan could be used to justify capacity charge fees
and/or impact fees for infill projects
$ 500,000
Fund for CIP FY24-25/miss
opportunity to clean the storm
drain in this storm season
No Park Construction Fees
Caltrain Station
Enhancement / Karyl
Matsumoto Plaza
Community Benefits Agreement for 200 Airport. It
includes ongoing maintenance of the new plaza
and contributions to construction that included
$120,000 payment for plaza improvements. This
payment was collected on 11/22/22 and went into
account: PARK CONSTRUCTION FEE
$ 120,000
No Park Land Acquisition Fund Transit Village Park
Project
Alternativve sites for a park are still being
consisdered. Funding is not needed at this
time. Should a site be found, funding will be
requested via a separate resolution to the City
Council.
Transit Village Park ($ 2,000,000)
No Parking District Funds Parking District Lot
Rehabilitation
Additional funding to rehabilitate Lots
based of Engineers Estimate
$ 100,000
Funding Source Yes
Citywide Traffic Impact Fees $250,000
East of 101 Sewer Impact Fees 100,000
East of 101 Traffic Impact Fees 30,000
Infrastructure Reserves 500,000
Park Construction Fees 120,000
Parking District Funds 100,000
Park Land Acquisition Fund (2,000,000)
ARPA 289,332
Total Funding Requests ($610,668)
24
FY 2023-24
Financial Results
Presentation to Budget Subcommittee
Karen Chang, Director of Finance
FEBRUARY 5, 2024
25
AGENDA
1 General Fund Overview
2 FY 2023-24 Financial Update
(2nd Quarter)
3 Reserve & Other Considerations
4 Q&A
22
26
Overview of General Fund Revenues
3
1General Fund Overview
0
20
40
60
80
100
120
140
2017 2018 2019 2020 2021 2022 2023
Millions
Fiscal Year
Other Revenues Use of Money & Property Charges for Services Licenses and Permits
Transient Occupancy Tax Sales Tax Property Tax
27
Major Revenue Trends
4
1General Fund Overview
Property Tax Revenues
$-
$10
$20
$30
$40
$50
$60
2017 2018 2019 2020 2021 2022 2023
Millions
Fiscal Year
Sales Tax Revenues
$-
$5
$10
$15
$20
$25
2017 2018 2019 2020 2021 2022 2023
Millions
Fiscal Year
Transient Occupancy Tax Revenues
$-
$2
$4
$6
$8
$10
$12
$14
$16
$18
2017 2018 2019 2020 2021 2022 2023
Millions
Fiscal Year
Other Tax Revenues
$-
$1
$2
$3
$4
$5
$6
$7
$8
$9
2017 2018 2019 2020 2021 2022 2023
Millions
Fiscal Year
28
Major Revenue Trends
5
1General Fund Overview
Franchise Fees
$-
$1
$2
$3
$4
$5
$6
2017 2018 2019 2020 2021 2022 2023
Millions
Fiscal Year
License and Permits
$-
$5
$10
$15
$20
$25
2017 2018 2019 2020 2021 2022 2023
Millions
Fiscal Year
Fines and Forfeitures
$-
$2
$4
$6
$8
$10
2017 2018 2019 2020 2021 2022 2023
x 100000
Fiscal Year
Intergovernmental
$-
$1
$2
$3
$4
$5
2017 2018 2019 2020 2021 2022 2023
Millions
Fiscal Year
29
Major Revenue Trends
6
1General Fund Overview
Charges For Services
$-
$2
$4
$6
$8
$10
$12
$14
2017 2018 2019 2020 2021 2022 2023
Millions
Fiscal Year
Use of Money and Property
$(5)
$-
$5
$10
$15
$20
$25
2017 2018 2019 2020 2021 2022 2023
Millions
Fiscal Year
Other Revenues
$-
$2
$4
$6
$8
$10
$12
2017 2018 2019 2020 2021 2022 2023
x 100000
Fiscal Year
Transfers In
$-
$2
$4
$6
$8
$10
2017 2018 2019 2020 2021 2022 2023
Millions
Fiscal Year
30
FY 2022-23 General Fund Budget Revenues
7
2FY 2023-24 Financial Update
Property Tax
34%
Sales Tax
16%Transient
Occupancy Tax
10%
Other Tax
4%
Franchise Fees
3%
Licenses and Permits
14%
Fine and Forfeitures
1%
Intergovernmental
3%
Charges For Services
6%
Use of Money
and Property
4%
Other Revenues
0%Transfers
5%
31
FY 2023-24 General Fund Adjusted Budget -
RevenuesFY 2023-24 Budgeted Revenues = $143.1 million
Total Receipts through December 31 = $59.0 million (41.3%)
8
REVENUES FY 2022-23 FY2023-24
(in millions)Budget Actuals
as of 12/31
Percentage
of Budget
Budget Actuals
as of 12/31
Percentage
of Budget
Property Tax $45.8 $25.5 55.7%$48.0 $26.2 46.2%
Sales Tax $22.4 $7.9 35.3%$23.4 $7.9 34.6%
TOT $14.2 $7.4 52.1%$14.9 $5.6 63.6%
Licenses & Permits $19.4 $11.8 60.8%$17.0 $6.9 38.6%
Intergovernmental $4.3 $0.9 20.9%$4.4 $2.3 35.5%
Service Charges $8.3 $4.8 57.8%$10.2 $4.7 39.1%
All Other Revenues $16.7 $8.0 47.9%$16.5 $4.7 34.6%
Transfers In $6.1 $2.5 41.0%$8.7 $0.8 22.7%
TOTAL $137.3 $68.8 50.1%$143.1 $59.0 41.3%
2FY 2023-24 Financial Update
Recommended
Projection
Adjustments
$2.8M 140.3M
$1.3M $49.3M
$1.4M $22.0M
$0.9M $14.0M
$4.5M $12.5M
$1.2M $5.6M
$0.2M $16.7M
$1.4M $11.6M
32
FY 2022-23 GF Budget Expenditures by
Department
9
2FY 2023-24 Financial Update
NON EXPENSE/DEPT
7%OTHER
4%
CITY MANAGER
3%
FINANCE
DEPARTMENT
2%
ECD DEPARTMENT
8%
FIRE DEPARTMENT
25%POLICE
DEPARTMENT
26%
PUBLIC WORKS
6%
LIBRARY
DEPARTMENT
4%
P&R DEPARTMENT
15%
33
Salary and Benefits Trends ($ millions)
10
2FY 2023-24 Financial Update
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
Total Adjusted Budget $106.7 $116.9 $120.4 $139.2 $123.8 $138.6 $143.9
Salary and Benefits $71.5 $74.7 $79.7 $85.2 $87.4 $95.4 $103.5
% of Total Adj Budget 67.0%63.9% 66.2%61.2% 70.6% 68.9% 71.9%
34
FY 2023-24 General Fund Budget -
Expenditures
11
2FY 2023-24 Financial Update
Expenditures
Adjusted
Budget
Actuals as of
12/31
% of
budget
Adjusted
Budget
Actuals as of
12/31
% of
budget
City Council
Payroll 196,886 63,937 32.5%189,027 78,338 41.4%
Supplies & Services 50,560 29,758 58.9%36,560 28,483 77.9%
Interdepartmental Charges 13,204 6,390 48.4%43,900 21,455 48.9%
Total 260,649 100,084 38.4% 269,486 128,276 47.6%
City Clerk
Payroll 909,334 385,086 42.3%1,001,300 399,151 39.9%
Supplies & Services 208,428 51,192 24.6%208,428 36,637 17.6%
Interdepartmental Charges 36,686 17,978 49.0%55,282 26,789 48.5%
Total 1,154,449 454,256 39.3% 1,265,011 462,578 36.6%
City Treasurer
Payroll 63,351 11,805 18.6%31,230 11,680 37.4%
Supplies & Services 102,060 21,198 20.8%102,060 44,708 43.8%
Interdepartmental Charges 2,493 1,246 50.0%138 69 50.0%
Total 167,904 34,249 20.4% 133,428 56,457 42.3%
FY 2022-23 FY 2023-24
35
Expenditures
Adjusted
Budget
Actuals as of
12/31
% of
budget
Adjusted
Budget
Actuals as of
12/31
% of
budget
City Attorney
Supplies & Services 937,808 489,962 52.2%1,100,717 377,391 34.3%
Interdepartmental Charges 2,482 1,191 48.0%8,108 3,939 48.6%
Total 940,290 491,153 52.2% 1,108,825 381,330 34.4%
City Manager
Payroll 2,863,694 1,513,695 52.9%3,243,094 1,248,628 38.5%
Supplies & Services 2,344,542 392,169 16.7%1,633,659 282,160 17.3%
Interdepartmental Charges 116,360 57,574 49.5%144,372 70,771 49.0%
Total 5,324,597 1,963,437 36.9% 5,021,126 1,601,560 31.9%
Finance
Payroll 3,172,557 1,413,781 44.6%3,333,330 1,323,979 39.7%
Supplies & Services 1,096,083 101,111 9.2%1,047,941 80,267 7.7%
Interdepartmental Charges 136,445 66,605 48.8%138,463 65,456 47.3%
Total 4,405,085 1,581,496 35.9% 4,519,734 1,469,702 32.5%
FY 2022-23 FY 2023-24
FY 2023-24 General Fund Budget -
Expenditures
12
2FY 2023-24 Financial Update
36
FY 2023-24 General Fund Budget -
Expenditures
13
2FY 2023-24 Financial Update
Expenditures
Adjusted
Budget
Actuals as of
12/31
% of
budget
Adjusted
Budget
Actuals as of
12/31
% of
budget
Non expense/Dept
Payroll 608,000 -0.0%--
Supplies & Services 1,544,698 903,046 58.5%1,394,367 485,196 34.8%
Transfers 700,000 250,000 35.7%500,000 -0.0%
Total Non-Expense/Dept. 2,852,698 1,153,046 40.4% 1,894,367 485,196 25.6%
Human Resources
Payroll 2,104,444 914,366 43.4%2,365,049 1,110,781 47.0%
Supplies & Services 513,299 204,604 39.9%575,111 100,143 17.4%
Interdepartmental Charges 66,366 32,618 49.1%55,192 26,276 47.6%
Total 2,684,109 1,151,588 42.9% 2,995,351 1,237,200 41.3%
FY 2022-23 FY 2023-24
37
FY 2023-24 General Fund Budget -
Expenditures
14
2FY 2023-24 Financial Update
Expenditures
Adjusted
Budget
Actuals as of
12/31
% of
budget
Adjusted
Budget
Actuals as of
12/31
% of
budget
Economic & Comm Development
Payroll 5,749,215 2,930,605 51.0%5,487,087 3,139,924 57.2%
Supplies & Services 9,477,181 2,381,792 25.1%6,469,550 2,004,384 31.0%
Capital Outlay 113,400 -0.0%113,381 -
Interdepartmental Charges 269,834 131,222 48.6%368,615 175,685 47.7%
Total 15,609,630 5,443,619 34.9% 12,438,633 5,319,993 42.8%
FY 2022-23 FY 2023-24
38
Expenditures
Adjusted
Budget
Actuals as of
12/31
% of
budget
Adjusted
Budget
Actuals as of
12/31
% of
budget
Fire
Payroll 27,312,449 17,439,241 63.9%28,172,922 17,482,689 62.1%
Supplies & Services 3,657,640 632,209 17.3%2,825,938 1,076,913 38.1%
Capital Outlay 400,000 -400,000 -
Interdepartmental Charges 2,054,628 943,235 45.9%2,250,984 1,101,398 48.9%
Total 33,424,717 19,014,685 56.9% 33,649,844 19,661,000 58.4%
Police
Payroll 30,438,959 17,656,629 58.0%32,464,166 18,209,039 56.1%
Supplies & Services 1,690,477 616,307 36.5%1,857,124 730,501 39.3%
Interdepartmental Charges 2,381,864 1,177,860 49.5%2,630,415 1,284,708 48.8%
Total 34,511,300 19,450,797 56.4%36,951,705 20,224,247 54.7%
FY 2022-23 FY 2023-24
FY 2023-24 General Fund Budget -
Expenditures
15
2FY 2023-24 Financial Update
39
Expenditures
Adjusted
Budget
Actuals as of
12/31
% of
budget
Adjusted
Budget
Actuals as of
12/31
% of
budget
Public Works
Payroll 4,496,168 2,219,275 49.4%4,765,838 2,612,909 54.8%
Supplies & Services 2,885,962 809,356 28.0%7,020,350 1,280,217 18.2%
Capital Outlay 312,000 -271,564 -
Interdepartmental Charges 909,575 451,538 49.6%1,763,775 874,306 49.6%
Total 8,603,705 3,480,169 40.4%13,821,528 4,767,432 34.5%
Library
Payroll 5,930,595 2,838,554 47.9%6,505,083 3,032,800 46.6%
Supplies & Services 1,078,235 367,191 34.1%1,057,204 553,497 52.4%
Interdepartmental Charges 264,914 118,771 44.8%743,808 339,970 45.7%
Total 7,273,745 3,324,516 45.7%8,306,095 3,926,266 47.3%
FY 2022-23 FY 2023-24
FY 2023-24 General Fund Budget -
Expenditures
16
2FY 2023-24 Financial Update
40
Expenditures
Adjusted
Budget
Actuals as of
12/31
% of
budget
Adjusted
Budget
Actuals as of
12/31
% of
budget
Parks and Recreation
Payroll 16,382,265 7,959,678 48.6%19,171,702 8,664,587 45.2%
Supplies & Services 5,384,639 1,836,880 34.1%6,556,908 2,013,711 30.7%
Capital Outlay --79,112 108,750
Interdepartmental Charges 1,106,247 550,569 49.8%1,301,683 644,880 49.5%
Total 22,873,152 10,347,127 45.2%27,109,406 11,431,928 42.2%
CIP
Transfers 3,833,270 161,864 4.2%4,375,873 -0.0%
Total 3,833,270 161,864 4.2%4,375,873 -0.0%
143,919,299 68,152,087 47.4%153,860,411 71,153,164 46.2%
Tota General Fund
Expenditures
FY 2023-24 General Fund Budget -
Expenditures
17
2FY 2023-24 Financial Update
41
FY 2023-24 General Fund Budget -
Expenditures
18
2FY 2023-24 Financial Update
Expenditures
Adjusted
Budget
Actuals as of
12/31
% of
budget
Adjusted
Budget
Actuals as of
12/31
% of
budget
Information Technology*
Payroll 2,127,121 918,632 43.2%2,298,886 1,039,228 45.2%
Supplies & Services 3,104,214 766,050 24.7%2,726,025 1,016,296 37.3%
Interdepartmental Charges 10,469 5,235 50.0%12,889 6,444 50.0%
Total 5,241,804 1,689,917 32.2%5,037,801 2,061,968 40.9%
* Non-General Fund: budgeted as internal service fund in Fund 785
42
Additional GF Revenue Amendment Request
Economic and Community Development $150,000
‒Increase in Building Permit collected fee $150,000
Fire Department $1,275,000
– Paramedic Service Fee Increase $1,200,000
– Fire Plan Check Fee $75,000
Transfer in from ARPA $1,238
– Residual balance for revenue loss category $1,238
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2FY 2023-24 Financial Update
43
Additional GF Appropriations Request
Economic and Community Development $75,000
‒Construction Coordination Consultant (2-Year contract)$75,000
Fire Department $689,600
– Contracts for Fire Plan Reviews $175,000
– Department of Health Care Services program $506,000
– Ambulance billing fees $8,600
– Upgrade 1.0 FTE Administrative Assistant I to
Management Analyst I with no fiscal impact in FY2023-24.
Parks & Recreation $285,000
– One-time Contractual landscape services $125,000
– Ongoing Contractual landscape services $10,000
– Police Department building window washing services $40,000
– Purchase of Westborough Blvd privately owned parcels
along eastbound shoulders $110,000
20
2FY 2023-24 Financial Update
44
Additional Non-GF Appropriations Request
1. American Rescue Plan Act Fund (201)$1,238
‒Transfer residual balance for Rev Loss category to GF $1,238
2. West Park Maintenance District Fund (Fund 231) $370,700
– Adjustment to full-time payroll salaries calculation $159,800
– Adjustment to part-time payroll salaries calculation $11,100
– Adjustment to benefit calculation $199,800
3. Stonegate Ridger Maintenance Fund (Fund 232)$20,170
– Adjustment to full-time payroll salaries calculation $630
– Adjustment to benefit calculation $19,540
4. Willow Gardens Maintenance Fund (Fund 233)$4,350
– Adjustment to full-time payroll salaries calculation $1,450
– Adjustment to benefit calculation $2,900
21
2FY 2023-24 Financial Update
45
Additional Non-GF Appropriations Request
5. West Park Maintenance District 1 & 2 Fund (Fund 234)$21,450
– Adjustment to full-time payroll salaries calculation $1,240
– Adjustment to benefit calculation $20,210
6. Developer Deposits Fund (Fund 270)$125,000
– ECD TDM Enforcement and Trip Cap Implementation $50,000
– ECD Objective Architectural Standards Updates $75,000
7. Commercial Linkage Fee (Fund 823) $300,000
– ECD Preparing sites for housing suitability $100,000
– ECD Property acquisition due diligence and negotiations $200,000
8. Storm Water Fund (Fund 740)$150,000
– Public Works: Storm line repairs identified in
Storm Drain Master Plan $150,000
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2FY 2023-24 Financial Update
46
Additional Non-GF Appropriations Request
9. Park Acquisition Fund (Fund 805)$100,000
– Parks and Rec: Parkland acquisition due diligence $100,000
10. PEG Equipment & Access Fund (Fund 786)$55,000
– Upgrade City Manager conference room for
Special City Council meetings $30,000
– Closed caption services for City Council meetings $25,000
23
2FY 2023-24 Financial Update
47
Mid-Year Capital Improvement Plan (CIP)
Request1. SSF Shoreline Protection and Connectivity (New project sd2402)$30,000
‒Funding Source: East of 101 Traffic Impact Fee
‒Funding request is for the pre-design phase of this project to fund
consultant for Caltrans grant application.
2. Storm Drain Master Plan (Existing project sd2301)$500,000
– Funding Source: Infrastructure Reserve
– These funds are needed for additional storm drain cleaning
required for conditional assessment.
3. Parking District Lot Rehabilitation (Existing project pf2402)$100,000
– Funding Source: Parking District Fund
– Additional funds to rehabilitate parking lots based on Engineering estimates.
This is for rehabilitation (surface seal asphalt pavement treatment and
new striping) of six (6) City Public Parking lots in the downtown area.
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2FY 2023-24 Financial Update
48
Mid-Year Capital Improvement Plan (CIP)
Request4. Adaptive Traffic Control System (Existing project tr1901)$100,000
‒Funding Source: Citywide Traffic Impact Fee
‒Additional funds requested for plan, design, and implementation of
adaptive traffic control in West of 101.
5. Junipero Serra Class 4 Bike Lanes (New project tr2414)$50,000
– Funding Source: Citywide Traffic Impact Fee
– Additional funding is required for the TDA Grant match.
6. Colma/SSF: El Camino Real Bicycle and Pedestrian Improvement
Project (PSR_PDS) and (PAED) (New project tr2415)$100,000
– Funding Source: Citywide Traffic Impact Fee
– Opportunity to follow through on part of the Bike/Ped Master Plan.
Colma is leading the project and has secured a TA Grant. Caltrans
asked to further previous project extends to Hickey Blvd & ECR for
project effectiveness/continuity.
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2FY 2023-24 Financial Update
49
Mid-Year Capital Improvement Plan (CIP)
Request7. Caltrain Station Enhancement/Karyl Matsumoto Plaza
(Existing project st1603)$120,000
‒New Funding Source: Park Construction Fees
‒Benefits Agreement for 200 Airport. It includes ongoing maintenance
of the new plaza and contributions to construction that included
$120,000 payment for plaza improvements.
8. Sewer Master Plan (Existing Project ss1801) $100,000
– Funding Source: East of 101 Sewer Impact Fees
– These funds will be used for additional design costs to update sewer model and report.
9. Broadband Fiber Optic Expansion (Existing Project pf2210) $289,332
– Funding Source: American Rescue Plan Act (ARPA)
– These funds will be used for installation of fiber optic cables in new
City-owned conduits from 550 North Canal to Skyline Blvd in the
Westborough Area to provide the middle mile for the carriers to connect
to the last mile in the Westborough area.26
2FY 2023-24 Financial Update
50
Consolidating Projects
10. Citywide School Traffic Calming Improvement Project ($600,000)
‒Original-existing project tr2405
‒Funding Source: Citywide Traffic Impact Fee
‒This project will be combined with existing project st2402. The funding
source will still be Citywide traffic Impact fee. This will be an additional
funding source to existing project st2402 (2024 Surface Seal Project).
11. 2024 Surface Seal Project (Existing project st2402) $600,000
– New/Additional Funding Source: Citywide Traffic Impact Fee
– Requesting Citywide Traffic Impact Fee as an additional funding source
for this project. Combining tr2405 (Citywide School Traffic Calming
Improvement project) to st2402. The funds will be utilized for the traffic
calming improvements and tracked accordingly.
27
2FY 2023-24 Financial Update
51
Remove Funding From Existing Project
12. Transit Village Park (Existing project pk2101) ($2,000,000)
‒Funding Sources: Park Land Acquisition Fee and Park Land Construction
‒Alternative sites for a park are still being considered. Funding
is not needed currently. Should a site be found, funding will be
requested from the City Council separately.
28
2FY 2023-24 Financial Update
52
American Rescue Plan Act (ARPA)
3Reserve and Other Considerations
29
53
City Reserves (As of June 30, 2023
3Reserve & Other Considerations
30
General Reserves (20%)$29,298,000
Pension Stabilization Reserves 5,596,000
Infrastructure Reserves 8,194,000
Total Reserve Levels $43,088,000
Available Unassigned GF Fund Balance 20,344,000
Reserves & Surplus Fund Balance $63,432,000
54
Infrastructure Reserve Activities and Balance
3Reserve & Other Considerations
31
Item Amount
FY2022-23 Balance $20,229,000
Add: Developer Contributions 250,000
Total $20,479,000
Less: YTD Appropriation
FY 2023-24 CIP project funding $4,050,000
DownpaymentAssistance Program 1,513,000
Previously funded CIP projects 10,186,000
Total appropriation $15,749,000
Mid-year Requests $500,000
Net IR activities after Mid-year $16,249,000
Available Reserve Balance after Mid-Year $4,230,000
55
Projected GF Revenue and Expenditure Summary
3Reserve & Other Considerations
32
Reserve for Encumbrances rollover $8,661,000
Adopted Budget Surplus $9,000
- FY 2023-24 Net Budget Adjustments (10,771,000)
- Mid-Year Revenue Adjustments (2,749,000)
- Mid-Year Appropriation Requests (1,050,000)
Total Adjustments (14,561,000)
FY 2023-24 Projected Deficit ($5,900,000)
56
QUESTIONS?
4Q&A
33
57