Loading...
HomeMy WebLinkAboutReso 90-2025 (25-446)City of South San Francisco Fiscal Year 2025-26 Proposed Budget Proposed Version 6/25/2025- City of South San Francisco | FY2025-26 Budget Book Page 1 TABLE OF CONTENTS Cover and Introduction Pages 5 Transmittal Letter 6 GFOA Budget Award 13 City Organizational Chart 15 History of City 16 Demographics 19 Mission, Values and Strategic Priorities 23 Financial Policies 24 Budget Overview 34 About the Budget 35 Budget Process and Timeline 36 General Fund 10-Year Long Range Forecast 38 Fund Structure 39 Appropriations Limit 44 Budget Adoption Resolutions 45 Funding Sources 46 City-wide Revenues by Type 47 Fund Summaries 54 Budgeted Expenditures Summary - All Funds 55 Governmental - Major Funds 61 General Fund (100)62 Measure W (101)70 City Housing Fund (241)75 Developer Deposits / Contributions, Permit Program Maint Fee, General Plan Maint Fee 81 Capital Improvements (510)86 Capital Infrastructure Reserve Fund (513)91 Capital Improvements - Civic Campus Phase I - Measure W-funded (516)94 Capital Improvements - Bond-funded (515/517/518/ 519/522/523/ 524/525)96 Governmental - non-Major Funds 98 American Rescue Plan Act Special Revenue Fund (201)99 Affordable Housing Fund (205)101 Park In-Lieu Fees Fund (206/207/209)103 Gas Tax Fund (210)105 Measure A-1/2 Cent Transportation Sales Tax (211)109 Road Maintenance & Rehab (SB1) (212)113 SMC Measure W 1/2 Cent Sales Tax (213)117 Community Development Block Grant (222)121 Common Greens Maintenance Districts (231/232/ 233/234)125 Oyster Point CFD Special Tax B (236)130 Solid Waste Reduction (250)134 Supplemental Law Enforcement Services (260)139 City Programs Special Revenue Fund (280)143 Transit Station Enhancement In-Lieu Fee (290)146 City of South San Francisco | FY2025-26 Budget Book Page 2 Debt Service Fund (461)148 Sewer Capacity Charges (730)152 PEG Equipment & Access Fund (786)154 Impact Fee - Park Land Acquisition IF Fund (805)158 Impact Fee - Park Construction IF Fund (806)161 Impact Fee - East of 101 Sewer IF Fund (810)163 Impact Fee - East of 101 Traffic IF Fund (820)166 Impact Fee - Public Safety IF Fund (821/826)169 Impact Fee - Bicycle and Pedestrian IF Fund (822)172 Impact Fee - Commercial Linkage IF Fund (823)175 Impact Fee - Library IF Fund (824)180 Impact Fee - City-wide Transportation IF Fund (825)183 Impact Fee - Public Arts In-lieu IF Fund (827)187 Impact Fee - Child Care IF Fund (830)191 Impact Fee - Oyster Point Interchange IF Fund (840)194 Proprietary - Major Funds 196 Sewer Enterprise Fund (710)197 Parking District Fund (720)204 Storm Water Fund (740)209 Proprietary - non-Major Funds 215 City Service Fund (781)216 Self Insurance Fund (782)220 Benefits Fund (783)225 Equipment Replacement (784)229 Information Technology (785)235 Departments 240 Departments Overview 241 City Council 242 City Treasurer 249 City Clerk 252 City Attorney 257 City Manager 264 Finance 269 Non-Departmental 275 Human Resources 277 Economic and Community Development 281 Fire Department 286 Police Department 293 Public Works 300 Library 313 Information Technology (IT)319 Parks and Recreation 324 Capital Improvement Program 332 Executive Summary 333 One year plan 335 Multi-year plan 339 Debt 342 Debt Service Obligations 343 Appendix 346 City of South San Francisco | FY2025-26 Budget Book Page 3 Glossary 347 City of South San Francisco | FY2025-26 Budget Book Page 4 COVER AND INTRODUCTION PAGES City of South San Francisco | FY2025-26 Budget Book Page 5 City Manager's Transmittal Letter CITY COUNCIL 2025: EDDIE FLORES, MAYOR; MARK ADDIEGO, VICE MAYOR; JAMES COLEMAN, COUNCILMEMBER; MARK NAGALES, COUNCILMEMBER; BUENAFLOR NICOLAS, COUNCILMEMBER. June 2025 Honorable Mayor, Members of the City Council, and Citizens of South San Francisco: I am pleased to present the City of South San Francisco’s Adopted Budget for Fiscal Year 2025–26, covering the period from July 1, 2025, through June 30, 2026. This document provides a comprehensive overview of citywide revenues and expenditures, with a particular focus on the General Fund and General Fund Reserves. It reects our continued commitment to sound scal stewardship while addressing operational and capital needs. Budget Overview The FY 2025–26 Budget represents a prudent spending plan that sustains the City’s high-quality of life through the maintenance of existing service levels and prepares for the operational impacts of new facilities scheduled to come online during the year. Despite ongoing challenges from rising service and infrastructure costs, South San Francisco remains in a sound nancial position. This budget carefully balances the need to address critical operational demands while maintaining investment in long-term priorities, including capital assets, eet replacements, and information technology. It ensures that essential infrastructure continues to be maintained, repaired, and modernized. While recognizing the nancial pressures ahead, this budget also celebrates the City’s recent accomplishments. It reects continued progress on City Council priorities and supports implementation of the FY 2025–26 Action Plan, which focuses on ve key areas to enhance community well-being, promote sustainability, and ensure long-term growth: . Housing and Supportive Services – Expand affordable and workforce housing through innovative nancing and preservation efforts. . Quality of Life – Improve parks, community services, and support local businesses through zoning and development. . Modern and Sustainable Organization – Ensure nancial sustainability, implement a modern Enterprise Resource Planning (ERP) system, and enforce key regulations. . Welcoming and Connected Community – Increase civic engagement via volunteer programs, inclusive governance, and community events. . Infrastructure and the Environment – Promote sustainability, update aging infrastructure, and enhance trafc ow and mobility. South San Francisco: A City on the Move Proudly known as The Industrial City, South San Francisco remains a center of innovation and economic opportunity. Today, the City is a global biotechnology hub, home to more than 250 biotech companies and over 13 million square feet of research and development space—with another 13.5 million square feet in the development pipeline. Recently designated a Pro-Housing jurisdiction by the State of California, the City is experiencing a wave of multi-family housing development, with four large developments currently under construction comprising more than 1,400 new housing units, of which 211 units will be affordable to moderate- and lower-income households. Key Development Projects: Southline Redevelopment – This transformative project envisions a 2.8 million-square-foot life sciences and ofce campus designed to support South San Francisco’s growing biotechnology sector. The rst phase, comprising 350,000 square feet, is scheduled for delivery in late 2025 and will feature state-of-the-art facilities that foster innovation and collaboration. Southline is poised to be a landmark development that enhances the City’s reputation as a premier destination for cutting- edge research and development. Kilroy Oyster Point Phase II – This signicant expansion project represents the next phase of development at Oyster Point and includes approximately 865,000 square feet of new life sciences space. With an estimated investment of $1 billion, the project is designed to meet growing demand from biotechnology and research tenants seeking high-quality waterfront laboratory and ofce facilities. Phase II builds on the success of earlier development phases and strengthens South San Francisco’s position as a global hub for life sciences innovation. City of South San Francisco | FY2025-26 Budget Book Page 6 SteelWave Discovery Station - This major mixed-use development will transform a key site at 180 El Camino Real with the introduction of a 64,000-square-foot agship Safeway, approximately 75,000 square feet of additional retail, 200 new residential units (including affordable housing), and 750,000 square feet of Class A life sciences and ofce space. Designed to serve as a new commercial and community hub near downtown, the project supports both the City’s housing goals and its expanding biotechnology ecosystem. Construction is expected to begin in 2025, with phased delivery over the following 18– 20 months. IQHQ Spur District – 580 Dubuque - As the rst phase of the larger Spur redevelopment, 580 Dubuque introduces 330,000 square feet of Class A life sciences ofce and lab space adjacent to the South San Francisco Caltrain Station. The eight-story facility will feature state-of-the-art infrastructure and four levels of underground parking. Topped out in April 2024, the building is targeting LEED Gold certication and is expected to be completed in the Fall of 2025. This development marks a major milestone in the transformation of the historic industrial Spur District into a vibrant biotechnology corridor. Baden Station Affordable Housing - This 100% affordable housing project, located at 428 Baden Avenue, brings much- needed residential opportunities to the heart of South San Francisco. Offering a mix of studio, one-, two-, and three- bedroom apartments, Baden Station is designed to serve low-income households in a transit-accessible and amenity-rich area. The development includes landscaped courtyards, community spaces, and on-site management. Leasing began in 2024, and the project represents a strong commitment to equitable housing in the City’s broader development strategy. 7 South Linden – This market rate, multi-family, 558-unit rental housing development includes 54 low-income units and 27 very low-income housing units. Built on a 4.22-acre redevelopment site formerly operated by low-rise commercial/industrial product, this will be the rst new development in the City’s Lindenville Specic Plan Area – a newly reimagined neighborhood south of the historic Downtown. ICON at 124 Airport/100 Produce – This market rate, multi-family, 480-unit rental housing development includes 40 low- income units and 20 moderate income housing units. Built on 4.12 acres bifurcated by San Mateo Avenue, this site is on the edge of the historic Downtown and includes substantial infrastructure improvements to make more seamless bicycle and pedestrian connections to the South San Francisco Caltrain Station. 410 Noor – This market-rate, multi-family, 338-unit rental housing development 17 low-income units and 17 moderate income units. Unlike 7 S Linden and ICON, 410 Noor is located along the El Camino Real corridor and proximate to the San Bruno BART Station. It also borders SteelWave’s planned Discovery Station life science development, creating a vibrant and dynamic mixed-use neighborhood. Capital Improvements Include: South San Francisco continues its commitment to enhancing infrastructure and supporting community growth through a series of key capital improvement projects. These initiatives are designed to improve public facilities, ensure safety, and accommodate the evolving needs of residents and businesses alike. Avalon-Brentwood Neighborhood Repairs: This project aims to extend the lifespan of neighborhood streets and enhance overall roadway safety. Base repairs began in January 2025, with the second phase—including surface sealing and road striping—planned for mid to late 2025. Sanitary Sewer System Rehabilitation: As part of the 2025-2028 Capital Improvement Program, the City is undertaking a comprehensive upgrade of its sanitary sewer system. This work includes upsizing, replacing, and repairing sewer mains and related infrastructure to ensure reliable and efcient wastewater management. Orange Memorial Park Aquatic Complex: Construction of the new Aquatic Complex commenced in May 2024, with an anticipated opening in early 2026. This state-of-the-art facility will provide expanded recreational opportunities and support community health and wellness for seniors, children, disabled adults, competitive swimmers, and all residents. Westborough Preschool Expansion: In May 2024, the City Council approved a contract to design an expansion of the Westborough Preschool facility, which will increase its capacity to better serve the growing needs of families in the community. A secondary benet of this project is the expanded availability of the Alice Bulos Community Center for community programs throughout the day, which is currently limited due to preschool operations. Flood Protection Enhancements: In collaboration with the U.S. Army Corps of Engineers, the City is constructing ood protection improvements at the South San Francisco-San Bruno Water Quality Control Plant and Pump Station #4. These measures will safeguard critical wastewater infrastructure against coastal storm risks. Downtown Park Development: The City is in the early planning stages for a new downtown park located at Linden Avenue and Pine Avenue. Construction is expected to begin in early 2026, with completion anticipated in early 2027, providing additional green space and enhancing the urban environment for residents and visitors. Downtown Lighting Enhancements: This public improvement project aims to upgrade street and pedestrian lighting throughout downtown South San Francisco to enhance safety, support evening activity, and improve the overall ambiance. By replacing outdated xtures with modern, energy-efcient lighting, the City seeks to create a more City of South San Francisco | FY2025-26 Budget Book Page 7 welcoming and vibrant environment for residents, visitors, and local businesses. The enhancements are part of a broader downtown revitalization strategy and are being developed with input from the community and local stakeholders. Fire Station 63 Replacement at 71 Camaritas: As Phase 3 of the Community Civic Campus, two years ago the City Council appropriated an initial $9 million toward replacement of the antiquated station in the old MSB. Design of the station will occur in FY 2025-26, while the City works to secure the remaining funding for the new station. Economic Outlook As we approach FY 2025–26, the economic landscape presents a mix of opportunities and uncertainties shaped by both global and domestic factors. While ination has moderated, emerging risks—including potential new tariffs—could impact price stability. The Federal Reserve has postponed anticipated interest rate cuts, opting to wait for clearer economic signals before adjusting monetary policy. Meanwhile, rising costs for capital equipment and construction continue to affect project timelines and budgeting. The labor market remains tight, challenging employers across sectors to attract and retain talent amid ongoing wage growth pressures. However, recent layoffs in the private sector and reductions within the federal government may help ease some of this labor supply pressure, potentially providing a broader pool of available workers in the near term. Additionally, geopolitical tensions, including ongoing conicts in Europe and the Middle East and heightened tensions with China, contribute to an unpredictable environment that may inuence trade and investment. Throughout this evolving context, the City’s budget process has emphasized thoughtful planning and prudent management. While community support for initiatives like the Business License Tax (Measure W) strengthens the scal foundation, a structural budget gap between revenue and expenditure growth persists. Addressing this gap will require continued vigilance, strategic decision-making, and collaboration as we navigate the coming scal year and beyond. General Fund Budget Summary FY 2025-26 General Fund Budget Highlights The FY 2025–26 General Fund Budget totals $152.5 million in proposed expenditures and is balanced through the strategic use of $12.0 million in available fund balance. The City projects $140.5 million in General Fund revenues, reecting steady but modest growth across most categories, alongside some areas of economic volatility. Table 1. General Fund Operating Budget   FY 2025-26 Proposed Budget (in millions) Beginning Available Fund Balance $29.0 Revenues $140.5 Less: Expenditure 152.5 Surplus/ (Decit)(12.0)    Use of General Fund Reserve 12.0 Net Surplus/(Decit)Balanced    Ending Available Fund Balance $17.0 The FY 2025–26 budget reects a thoughtful balance between maintaining core service levels and addressing ongoing economic pressures and evolving community needs. The City remains committed to cost containment and scal discipline, ensuring uninterrupted services without signicant reductions. A measured and intentional use of reserves provides near-term stability while allowing time to implement longer-term solutions. This approach helps preserve the City’s nancial exibility amid ination, labor market challenges, and other external factors. City of South San Francisco | FY2025-26 Budget Book Page 8 Looking ahead, the projected decline in the year-end unassigned fund balance—from $29.0 million to $17.0 million— underscores the importance of continued monitoring and proactive nancial planning. While reserves remain healthy, achieving long-term balance will require aligning future expenditures with sustainable revenue growth and identifying strategic opportunities for improved efciency. In response to increasing scal pressure from the State’s own budget decit, the City has taken a prudent approach by not assuming a backll of the FY 2023–24 Property Tax in-lieu of Vehicle License Fees (VLF) shortfall. If this funding is restored, it could reduce the FY 2025–26 budget decit by approximately $5 million. Revenue and Expenditure Trends The FY 2025–26 General Fund revenue forecast reects a combination of stable baseline revenues and areas that remain sensitive to broader economic uctuations. While the City’s revenue outlook is generally positive, key sources continue to be inuenced by both local development activity and national economic trends. Table 2. General Fund Operating Revenue Budget   REVENUES FY 2023-24 FY 2024-25 FY 2025-26 (in millions) Actual as of 6/30/2024 Adopted Budget Adjusted Budget Proposed Budget Percent Change from FY 2024-25 Adopted Taxes Property Tax $56.4 $50.2 $57.1 $56.9 13.3% Sales Tax 23.2 23.2 21.2 21.2 -8.6% Transient Occupancy Tax 14.9 14.5 14.8 15.3 5.4% Other Tax 7.1 6.7 7.7 9.0 34.6% Franchise Fees 5.3 6.2 6.2 6.2 0.0% License and Permits Building 8.3 9.0 8.0 5.7 -36.7% Fire 3.8 2.3 2.9 2.7 15.7% Public Works 1.6 1.8 2.7 2.3 25.7% Other 0.2 0.0 0.0 0.1 700.0% Fines & Forfeitures 0.5 0.9 0.9 0.9 0.1% Intergovernmental 6.5 2.7 4.9 2.9 10.7% Charges for Services Planning 0.7 0.4 0.4 0.8 86.5% Fire 4.8 3.7 3.9 3.3 -9.5% Parks & Recreation 4.2 3.4 3.4 3.5 2.7% Police 1.2 1.1 1.1 1.0 -8.6% Other*0.1 0.0 0.0 0.0 4.9% Inter-Fund Admin Charge 2.0 2.0 2.0 2.0 0.0% Use of Money & Property 7.1 4.5 5.7 5.1 13.5% Other Revenues 0.3 0.3 0.3 0.3 0.1% Transfers In 6.3 1.7 2.3 1.5 -10.1% PO/CIP Rollover 10.5 Measure W 0.0 3.0 0.0 0.0 -100.0% TOTAL REVENUES $154.6 $137.4 $156.0 $140.5 2.2% *Revenue appears as 0 due to rounding. City of South San Francisco | FY2025-26 Budget Book Page 9 Revenue Highlights: Property Tax is projected to grow by 13.3% compared to the prior adopted budget, largely driven by residual distributions from the former Redevelopment Agency. However, overall assessed valuation growth has slowed to 2.23%, signaling a more moderate pace of future growth.   Sales Tax is expected to decline by 8.6%, reecting shifting consumer behavior, inationary impacts, and updated statewide projections. The City remains cautious in its outlook and continues to monitor this category closely.   Transient Occupancy Tax (TOT) continues to recover, supported by a rebound in domestic travel. However, international travel trends and broader economic uncertainties still pose some risk to sustained growth.   Licenses and Permits, and building permit revenue in particular, are projected to decline by more than 35% as development activity has slowed amid high interest rates and rising construction costs.   Business License Tax has shown notable growth, buoyed by the voter-approved Measure W. This increase provides important operational support and contributes to scal resilience. While revenues remain relatively stable, expenditure growth continues to outpace revenues, driven largely by rising costs associated with personnel, benets, and essential services. Expenditure Highlights: Table 3. General Fund Operating Expenditure Budget by Category   EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 (in millions) Actual as of 6/30/2024 Adopted Budget Adjusted Budget Proposed Budget Percent Change from FY 2024-25 Adopted Salary and Benets $106.1 $113.4 $114.4 $116.9 3.1% Supplies and Services 23.0 22.1 34.3 25.0 13.1% Capital Outlay 0.2 0.0 0.7 0.0 0.0% Debt Service 0.0 0.0 0.0 0.0 0.0% Interdepartmental Charges 10.2 9.5 9.5 10.2 7.0% Transfers - Operation 0.5 0.5 0.5 0.5 0.0% Transfers - Capital Transfers 0.7 0.0 3.4 0.0 0.0% TOTAL EXPENDITURES $140.8 $145.4 $162.8 $152.5 4.9% 1. 2025-26 Salary and Benets budget assumes $8.0 million in vacancy savings. Personnel Costs remain a signicant driver of the City’s overall expenditure growth. The FY 2025–26 budget includes a 3% Cost-of-Living Adjustment (COLA) in anticipation of expiring labor agreements. In addition to benet-related cost increases, the City has also experienced wage growth in recent years due to competitive labor market conditions and the need to retain and attract skilled employees. While a 7% vacancy rate is expected to generate approximately $8 million in salary savings, total personnel costs continue to trend upward as a result of rising base wages, benet ination, and pension contributions.   Pension Contributions to CalPERS are projected to increase by 19%, with the Unfunded Accrued Liability (UAL) payment rising to $23.6 million. This increase reects amortization of investment losses, actuarial adjustments, and the effects of recent wage growth.   Healthcare Costs remain a source of pressure. While Kaiser premiums are at, other providers such as Blue Shield have seen increases of up to 4%, adding to overall benet cost escalation.   Operating Costs and Ination continue to impact all service areas. Rising prices for materials, utilities, and contracted services have required departments to reprioritize spending and look for efciencies in day-to-day operations. 1 City of South San Francisco | FY2025-26 Budget Book Page 10 Taken together, these revenue and expenditure trends underscore the importance of maintaining nancial exibility and pursuing strategic adjustments to ensure long-term sustainability. The City remains committed to closely monitoring these trends and adapting as needed to support essential services and long-term goals. 10-Year General Fund Forecast In addition to preparing an annual operating budget, the City maintains a 10-year General Fund forecast to support long- term planning and guide policy decisions. This forecast serves as a strategic roadmap, helping City leadership anticipate scal trends, assess the potential impacts of decisions, and maintain nancial stability over time. The forecast reects projections of revenues and expenditures based on current assumptions, known obligations, and anticipated cost drivers such as labor, benets, and service demands. Consistent with many other cities in San Mateo County, the forecast indicates that expenditures are expected to grow at a faster rate than revenues in the years ahead, creating a need for thoughtful planning and action. Importantly, this long-range view reinforces the role of the City’s reserves—not as a permanent solution, but as a exible tool to help navigate short-term uctuations while longer-term strategies take shape. Careful use of reserves, paired with prudent nancial management, ensures the City can continue delivering high-quality services while maintaining adaptability in a changing economic environment. To support structural balance over time, the City is actively exploring a range of options, which may include: Pursuing sustainable revenue opportunities; Managing expenditure growth to align with available resources; Reassessing the timing and scope of capital investments; Evaluating service delivery models to improve efciency. The 10-year forecast underscores the importance of taking a balanced and proactive approach to nancial management. By planning ahead and aligning resources with priorities, the City can maintain its strong scal foundation and continue meeting the evolving needs of the South San Francisco community. For detailed projections and assumptions, please refer to the General Fund 10-Year Long-Range Forecast section in the Budget Book. Other Funds There are 63 funds that the City's Finance Department manages outside of the General Fund. The notable fund budgets for FY 2025-26 are shown in the fund summary section of the Budget Book. Many of the nal budgets for these funds are contingent upon the adoption of the Capital Improvement Program (CIP) by the City Council. Fund FY 2023-24 Actual FY 2024-25 Adopted FY 2025-26 Proposed General Fund $ 140.8 $ 145.4 $ 152.5 Measure W Fund 11.8 16.4 13.4 Special Revenue Funds 20.1 12.6 11.9 Impact Fee Funds 13.4 6.1 10.7 Enterprise Funds 39.2 19.0 46.9 Internal Services Funds 34.3 30.9 38.7 Debt Service Fund 11.5 13.2 13.2 Sub-Total $ 271.1 $ 43.6 $ 287.8 Capital Improvement Funds 55.7 8.8 15.4 Total $ 326.8 $ 52.4 $ 302.9 Reserves The City’s nancial reserve funds are expected to be approximately $57.9 million at the end of FY 2025-26. A breakdown is shown below: City General Reserves   Estimated Ending Financial Reserve for FY 2025-26 (in million) City of South San Francisco | FY2025-26 Budget Book Page 11 General Reserve $27.8 Infrastructure Reserve*6.9 CalPERS Stabilization Reserve 6.2 Available GF Balance*17.0 Total $57.9 The General Reserve, which represents 20 percent of the City’s annual revenue budget, excluding transfers in (General Fund), aligns with best practices guidelines from the Government Finance Ofcers’ Association (GFOA). The Infrastructure Reserve is largely comprised of General Fund surpluses that were set aside over previous years in anticipation of the City’s future infrastructure projects. The value shown is the unencumbered monies available that have not yet been designated toward a project. It should be noted that within the proposed FY 2025-26 Capital Improvement Program, a net $1.9 million of direct capital project funding is requested from the Infrastructure Reserves, which is reected in the ending balance above. The CalPERS Stabilization Reserve was established through two separate Council actions in FY 2015-16 and FY 2017-18, totaling $5.5 million. In December 2022, Finance capitalized on the higher interest environment by establishing a separate investment account with the City’s investment manager, Chandler Asset Management, to achieve a higher rate of return. As of April 30, 2025, the account balance has grown to $6.2 million. This can be used to smooth volatility in pension-related costs. The Available General Fund Balance is the unassigned portion of the General Fund that helps bridge the natural timing gap between revenues and expenditures. While these reserves remain strong, the City’s 10-year nancial forecast highlights the importance of maintaining a thoughtful, long-range approach. As future operating costs continue to rise, the City will need to carefully balance the use of reserves with strategies that promote structural balance and long-term sustainability. Reserves play an important role in supporting the City’s scal health—not only by safeguarding against short-term volatility but also by providing exibility to make well-timed investments in community priorities. Going forward, continued prudent planning and disciplined decision-making will ensure that these resources remain available to meet both current and future needs. CONCLUSION This budget reects our unwavering commitment to transparency, scal responsibility, and strategic foresight. While challenges lie ahead, South San Francisco is positioned to respond with resilience, thanks to sound reserves, forward-thinking leadership, and strong community support. I extend my sincere appreciation to all City staff, Department Heads, and the Finance team for their diligence, insight, and dedication throughout the budget development process. Special thanks to the City Council and the Budget Standing Committee for your leadership, collaboration, and vision as we continue to build a sustainable and prosperous future for all South San Franciscans. Together, we are charting a course for a stronger, more equitable, and resilient city. Respectfully submitted, City of South San Francisco | FY2025-26 Budget Book Page 12 GFOA Budget Award The City of South San Francisco has been honored with the prestigious Distinguished Budget Presentation Award by the Government Finance Ofcers Association of the United States and Canada (GFOA) for its Annual Budget of Fiscal Year 2024-25. This recognition is a testament to the city's unwavering commitment to crafting a budget document that not only meets stringent program criteria but also serves as a comprehensive policy statement, nancial roadmap, operational guide, and communication tool. This GFOA award is only for a given budget year and the City takes great pride in this distinguished honor, which underscores its dedication to transparent and effective nancial management. Looking ahead, the City is condent that the Fiscal Year 2025-26 budget will maintain the same high standards, and thus, plans to submit it to GFOA for consideration for another award. City of South San Francisco | FY2025-26 Budget Book Page 13 City of South San Francisco | FY2025-26 Budget Book Page 14 Citywide Organizational Chart City of South San Francisco | FY2025-26 Budget Book Page 15 History of South San Francisco South San Francisco, California, "The Industrial City," has a population of 64,487 (2024), a land area of 9.14 square miles, and was incorporated on September 19, 1908. The city is located approximately eight miles south of downtown San Francisco and is adjacent to the northern border of the San Francisco International Airport and San Bruno. It is south of the cities of Brisbane, Daly City, and the Town of Colma, and east of the City of Pacica. The City occupies the basin and portions of the sides of a broad valley, which is formed by the San Bruno Mountains to the north and the Coast Range to the west. Most of the valley faces the adjacent San Francisco Bay. South San Francisco experiences mild winters and dry, cool summers. The hills to the west shield the City from much of the fog that prevails in neighboring areas.   Prior to incorporation, the City was known as Rancho Buri Buri. Between 1856 and 1892, portions of the Rancho were purchased by cattle barons Miller and Lux, who formed the Town of Baden. A group of Chicago businessmen, led by Gustavus Swift, formed the Town of South San Francisco. Swift also created the South San Francisco Land Improvement Company, which was the driving force for, and the economic support behind, the 1908 merger and incorporation of these two areas into the City of South San Francisco. At the time of incorporation, the population totaled 1,989 and there were 14 major industries in South San Francisco. The City continued to grow and ourish with companies such as Bethlehem Steel, U.S. Steel, W.P. Fuller, and Swift and Co., among many others. During the 1920’s, City Hall was built to house all City ofces, including the Police and Fire Departments, and the “South San Francisco, the Industrial City” sign was installed on Sign Hill through the efforts of the Chamber of Commerce.   In 1949, the City Manager/City Council form of government was adopted. Under this leadership, the City expanded with the addition of the Oyster Point Marina, housing developments on the slopes west of El Camino Real and the creation of the Industrial Park by the Utah Construction Company. The population also continued to grow while maintaining the diversity that had always existed in the area. As heavy industry moved out of the area, it was replaced by light industry and hotels serving the San Francisco International Airport. In 1976, Herb Boyer and Bob Swanson founded Genentech to explore ways of using recombinant DNA technology to create breakthrough medicines. This marked the beginning of the biotech industry and earned South San Francisco the title 'Birthplace of Biotechnology.' Since then, many other biotech rms, as well as large development projects such as Gateway, Oyster Point Business Park, and Bay West Cove, have moved into the area. Today, there are over 200 biotechnology rms in South San Francisco, earning the City the title "Biotechnology Capital of the World." Employment Employment in South San Francisco includes manufacturing, retail, professional/scientic services, healthcare, and administration. The City has a large employment base in the biotechnology eld, located east of US Highway 101, which swells the City's population to more than 83,000 during the workday. City of South San Francisco | FY2025-26 Budget Book Page 16 Schools South San Francisco is served by the South San Francisco Unied School District (SSFUSD) and the San Mateo Community College District (SMCCD). SSFUSD includes all of South San Francisco, as well as parts of Daly City and San Bruno. SSFUSD operates nine elementary schools (two in Daly City and one in San Bruno), three middle schools, three high schools, and an adult education program. SMCCD consists of three community colleges, with the closest to South San Francisco being Skyline Community College in San Bruno. Skyline offers associate degree programs and provides opportunities for students to transfer to four-year universities. Parks & Recreation The Parks and Recreation Department maintains and operates over 250 acres of parks and open space, as well as 500,000 square feet of public facilities. Amenities include a brand-new Library, Parks and Recreation (LPR) building, which opened in October 2023, renovated baseball and soccer elds at Orange Memorial Park, twenty-six playground areas, artist studios, a sculpture garden, a bocce ball court, a skate park, a dog park, basketball courts, an indoor swimming pool (soon to be replaced with a new Aquatic Center), and picnic areas. Open space areas include Sign Hill Park, six miles of improved pathways along the San Francisco Bay shoreline, and the Common Greens. The City also has an award-winning trail system, Centennial Way. The Centennial Way Trail is a three-mile asphalt bike and pedestrian path constructed on top of the BART tunnel that runs from South San Francisco BART to San Bruno BART station at Tanforan Shopping Center. The City offers recreational programs to benet residents’ quality of life, including affordable childcare through before and after-school programs, summer camp, and licensed preschool; enrichment and exercise courses; leisure activities and care for seniors; facilities for private events and meetings; public art and cultural experiences; and youth and adult sports programs. Public Transportation The City is at the crossroads of multiple types of public transportation. The City operates a free community shuttle, the South City Shuttle. Additionally, the City is served by bus lines operated by the San Mateo County Transit Authority (SamTrans), the Caltrain commuter rail with destinations from San Francisco to San Jose, and the Bay Area Rapid Transit (BART) system, which connects commuters to San Francisco Airport, San Francisco, and East Bay destinations, including Oakland, Fremont, and Concord. In 2015, the City was awarded a $49 million grant from the San Mateo County Transportation Authority to relocate its Caltrain Station closer to the downtown area. Construction on the new Caltrain Station began in Fall 2017 and was completed in 2022, achieving a major milestone for the City’s Downtown Station Area Plan. The Ferry Terminal at Oyster Point Marina opened to the public on June 4, 2012. This commuter option offers weekday trips from Oakland and Alameda. At Oyster Point, shuttle services are available to transport commuters to the business areas in South San Francisco. Structure of Government City Council – 5 members, elected to 4-Year Terms The governing body of South San Francisco is the City Council, which establishes local laws and policies through the enactment of ordinances and resolutions. Council also determines how the City shall obtain and spend funds, appoints members to all advisory municipal activities, and represents the City by serving on regional and county committees and boards whose policies may impact South San Francisco (e.g., Association of Bay Area Governments and Metropolitan Transportation Commission). The Council provides direction to the City Manager and acts as the formal governing body of the Successor Agency to the Redevelopment Agency (formerly the RDA Board of Directors). This is a part-time, salaried position. City Clerk – Elected to a 4-Year Term The City Clerk is the archivist of City records and, as such, maintains records and prepares the minutes of Council proceedings. Additional responsibilities include providing information to the general public and staff through research of city records, administering municipal elections, and processing initiative recalls and referendum petitions. The Clerk also processes Conict of Interest Statements for designated employees, Council members, and candidates for Council seats. This is a full-time, salaried position. City of South San Francisco | FY2025-26 Budget Book Page 17 City Treasurer – Elected to a 4-Year Term The City Treasurer is responsible for investing City funds in compliance with the City's Investment Policy. Reports identifying amounts and types of investment instruments are provided quarterly to the City Council. The duties of this position include coordinating nancial transactions in cooperation with the Director of Finance. This is a part-time, salaried position. City Manager – Appointed by City Council The City Manager is the Chief Administrative Ofcer of the City and is appointed by the City Council. The City Manager provides overall administration and direction for the City organization in accordance with City Council policies. This position also serves as the Executive Director of the Successor Agency to the RDA and as the Director of Emergency Services. This is a full-time, salaried position. City Attorney – Appointed by City Council The City Attorney serves as legal counsel for the City Council and the Successor Agency to the RDA. This position is responsible for providing both formal and informal legal opinions, as well as advice to the City’s ofcers, employees, boards, and commissions. Duties also include the review and/or preparation of all contracts, bonds, deeds, leases, and other documents of legal signicance. This is a contract position. City of South San Francisco | FY2025-26 Budget Book Page 18 Population Overview T O TA L P O P U L AT I O N 64 ,487 1.7% vs. 2022 G R O W T H R A N K 461 out of 503 Municipalities in California D AY T I M E P O P U L AT I O N 83,427 Daytime population represents the effect of persons coming into or leaving a community for work, entertainment, shopping, etc. during the typical workday. An increased daytime population puts greater demand on host community services which directly impacts operational costs. * Data Source: American Community Survey 5-year estimates P O P U L A T I O N BY A G E G R O U P Aging affects the needs and lifestyle choices of residents. Municipalities must adjust and plan services accordingly. * Data Source: American Community Survey 5-year estimates * Data Source: U.S. Census Bureau American Community Survey 5-year Data and the 2020, 2010, 2000, and 1990 Decennial Censuses19901992199419961998200020022004200620082010201220142016201820202022202455k 60k 65k 70k <5 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-59 60-64 65-74 75-84 >85 City of South San Francisco | FY2025-26 Budget Book Page 19 Household Analysis T O T A L H O U S E H O L D S 21,870 It is important to consider the dynamics of household types to plan for and provide services effectively. Household type also has a general correlation to income levels which affect the tax base. * Data Source: American Community Survey 5-year estimates 9% higher than state average Family Households 53% 12% higher than state average Married Couples 56% 24% lower than state average Singles 18% 18% lower than state average Senior Living Alone 11% City of South San Francisco | FY2025-26 Budget Book Page 20 Economic Analysis Household income is a key data point in evaluating a community’s wealth and spending power. Pay levels and earnings typically vary by geographic regions and should be looked at in context of the overall cost of living. H O U S E H O L D I N CO M E Above $200,000 31% 61% higher than state average Median Income 135,909 41% higher than state average Below $25,000 8% 38% lower than state average * Data Source: American Community Survey 5-year estimates O v e r $2 0 0 ,0 0 0 $1 5 0 ,0 0 0 t o $2 0 0 ,0 0 0 $1 2 5 ,0 0 0 t o $1 5 0 ,0 0 0 $1 0 0 ,0 0 0 t o $1 2 5 ,0 0 0 $7 5 ,0 0 0 t o $1 0 0 ,0 0 0 $5 0 ,0 0 0 t o $7 5 ,0 0 0 $2 5 ,0 0 0 t o $5 0 ,0 0 0 B e l o w $2 5 ,0 0 0 City of South San Francisco | FY2025-26 Budget Book Page 21 Housing Overview 2 0 2 3 M E D I A N H O M E VA L U E 1,160,100 * Data Source: 2023 US Census Bureau (http://www.census.gov/data/developers/data- sets.html), American Community Survey. Home value data includes all types of owner-occupied housing. H O M E V A L U E D I S T R I B U T I O N * Data Source: 2023 US Census Bureau (http://www.census.gov/data/developers/data- sets.html), American Community Survey. Home value data includes all types of owner-occupied housing. H O M E O W N E R S V S R E N T E R S South San Francisco 39% Rent 61% Own S tate Avg. 44% Rent 56% Own * Data Source: 2023 US Census Bureau (http://www.census.gov/data/developers/data- sets.html), American Community Survey. Home value data includes all types of owner-occupied housing.2009201020112012201320142015201620172018201920202021202220234 0 0 k 6 0 0 k 8 0 0 k 1 ,0 0 0 k 1 ,2 0 0 k > $1,0 0 0,00 0 $750,000 to $999,9… $500,000 to $749,9… $400,000 to $49 9,… $300,000 to $399,9… $250,000 to $299,9… $200,000 to $249,9… $15 0,000 to $19 9,999 $100,000 to $149,9… $5 0,000 to $9 9,999 < $49,999 City of South San Francisco | FY2025-26 Budget Book Page 22 Mission, Values, and Strategic Priorities The Industrial City: Industrious, entrepreneurial, innovative…home to big thinkers changing the world! Our Mission Statement The mission of the government of the City of South San Francisco is to provide a safe, attractive, and well-maintained community through superior customer service, programs, and a work ethic that will enhance the quality of life in our neighborhoods. To that end, we will strive to nurture a partnership with the community by recruiting a diverse and highly skilled workforce, being an active partner in quality education, and attracting and retaining a prosperous business community, all of which will foster community pride and understanding. Core Values We are committed to: Strengthening each other and the organization through dedication and teamwork. Recognizing and Respecting diversity and encouraging the opinions of the community and workforce. Excellence and Service in everything we do. Encouraging creativity and supporting problem-solving. Accepting responsibility and accountability. Demonstrating integrity and transparency in all aspects of service. Promoting and maintaining open and constructive communication. Encouraging skill development and professional growth. Strategic Priorities: At the beginning of every calendar year, the City Council meets to discuss and decide upon their strategic agenda for the upcoming year.  Below are the four key priorities the City Council has chosen to guide the FY 2025-26 Action Plan: . Housing and Supportive Services: Expand affordable and workforce housing through innovative nancing and preservation efforts.   . Quality of Life: Improve parks, community services, and support local businesses through zoning and development.   . Modern and Sustainable Organization: Ensure nancial sustainability, implement ERP systems, and enforce key regulations.   . Welcoming and Connected Community: Increase civic engagement via volunteer programs, inclusive governance, and community events. City of South San Francisco | FY2025-26 Budget Book Page 23 Financial Policies The City of South San Francisco’s budget and nancial policies serve as the basic guidelines for managing the City’s scal operations. These policies are established through the Municipal Code, Administrative Instructions, Reserves Policy, and Debt and Investment Management Policies, which incorporate best practices from the Government Finance Ofcers’ Association (GFOA) and ensure alignment with the practices of other California cities. Municipal Code Title 4 REVENUE AND FINANCE Chapter 4.04 PURCHASING SYSTEM (http://qcode.us/codes/southsanfrancisco/view.php?topic=4-4_04&frames=on) Chapter 4.08 GAS TAX STREET IMPROVEMENT FUND (http://qcode.us/codes/southsanfrancisco/view.php?topic=4- 4_08&frames=on) Chapter 4.12 TRANSFER OF CITY TAX FUNCTIONS TO COUNTY (http://qcode.us/codes/southsanfrancisco/view.php? topic=4-4_12&frames=on) Chapter 4.16 SALES AND USE TAX (http://qcode.us/codes/southsanfrancisco/view.php?topic=4-4_16&frames=on) Chapter 4.20 TRANSIENT OCCUPANCY TAX (http://qcode.us/codes/southsanfrancisco/view.php?topic=4- 4_20&frames=on) Chapter 4.22 COMMERCIAL PARKING TAX (http://qcode.us/codes/southsanfrancisco/view.php?topic=4-4_22&frames=on) Chapter 4.24 REAL PROPERTY TRANSFER TAX (http://qcode.us/codes/southsanfrancisco/view.php?topic=4- 4_24&frames=on) Chapter 4.28 REVOLVING FUND (http://qcode.us/codes/southsanfrancisco/view.php?topic=4-4_28&frames=on) Chapter 4.32 CLAIMS FOR MONEY, DAMAGES, AND REFUNDS (http://qcode.us/codes/southsanfrancisco/view.php? topic=4-4_32&frames=on) Chapter 4.36 TRANSACTIONS AND USE TAX (http://qcode.us/codes/southsanfrancisco/view.php?topic=4- 4_36&frames=on) Administrative Instructions Purchase Policy  Travel and Training Policy and Reimbursement  Budget Adjustment Request Instruction  Budget Amendment Resolution Instructions  City Credit Card Use Instructions  Project Accounting, Reporting & Claims for Grant Reimbursement Instructions  Delegation of Purchase Authority Instructions  City of South San Francisco | FY2025-26 Budget Book Page 24 Reserves Policy The Reserves Policy is designed to provide budget exibility to the City Council for prioritizing street, facility and park infrastructure backlog improvements, to incorporate best practices from the Government Finance Ofcers’ Association (GFOA) and ensure consistency with other California cities. The GFOA Best Practices Recommendation for General Fund reserves recommends at least two months of operating revenues be held in reserves to fund the types of contingencies already in the City’s Reserve Policy. The GFOA Reserves Policy also stipulates that adequacy of funds in other Reserves outside of the General Fund should be considered in determining the right level of General Fund reserves. Given that the City has reserves for equipment replacement, IT, workers’ compensation, general liability, OPEB, and an infrastructure replacement reserve, the City’s Reserve Policy is to have General Fund Reserves equal to at least two months of operating revenues (excluding transfers in), which is between 15 and 20 percent. The City’s Reserves Policy provides guidance to establish and maintain reserve levels for specic operating funds. General Fund Reserve for Emergencies Commit two percent of General Fund operating revenues. This would cover one week of operations, and would be used to cover unanticipated costs from catastrophic losses from natural disasters or accidents such as earthquakes, re, pipeline explosions, or ooding, or other major calamities that require the activation of the Emergency Operations Center. Reserve for Economic Contingencies Commit seven percent of General Fund operating revenues. The reserve would be available to mitigate impact of local uctuations in revenue due to local economic conditions and business relocations to the City’s budget. Government Finance Ofcers Association (GFOA) Best Practices Recommendation The Government Finance Ofcers Association (GFOA) Best Practices Recommendation for General Fund Reserves states that at a minimum, two months of operating revenues (equivalent to 15-20 percent of annual revenues) should be held in reserves to fund the types of contingencies already in the City’s Reserves Policy (above). Therefore, the General Fund Unrestricted Reserve will be the difference between two months of revenues (15-20 percent of annual revenues) and the above reserves. Excess Funds Funds in excess of the Reserves Policy above will be deposited in the following reserves that reside outside the General Fund: The Infrastructure Reserve was created to address critical infrastructure replacement and/or deferred facility improvements. The CalPERS Stabilization Reserve was created to address volatility with CalPERS, the entity with which City contracts for employee pension benets. These funds are still under City Council purview, and could be used for any valid City budgeting purpose. Equipment Replacement Fund Vehicle Replacement Reserve Staff are in the process of updating the analysis of the City’s vehicle eet. Until that analysis has been completed, staff recommends that the City maintain at least 75 percent of the annual replacement costs in reserves to ensure a well- maintained eet. Parking District Fund Maintenance Reserve The estimated cost to replace the elevators at the Miller Parking Garage is $480,000. Staff recommends that the City maintain that amount in reserves within the Parking District Fund. City of South San Francisco | FY2025-26 Budget Book Page 25 Debt Management Policy The Debt Management Policy (the “Debt Policy”) of the City of South San Francisco (the “Issuer”) was approved by the Issuer’s City Council on September 6, 2017 through resolution 107-2017. The Debt Policy may be amended by the City Council as it deems appropriate from time to time in the prudent management of the debt of the Issuer. The Debt Policy applies to the Issuer and all subordinate entities of the Issuer for which the City Council serves as the governing board. Findings The Debt Policy is intended to comply with Government Code Section 8855(i), effective on January 1, 2017, and shall govern all debt undertaken by the Issuer. The Issuer hereby recognizes that a scally prudent debt policy is required in order to: Maintain the Issuer’s sound nancial position. Ensure the Issuer has the exibility to respond to changes in future service priorities, revenue levels, and operating expenses. Protect the Issuer’s credit-worthiness. Ensure that all debt is structured in order to protect both current and future taxpayers, ratepayers and constituents of the Issuer. Ensure that the Issuer’s debt is consistent with the Issuer’s planning goals and objectives and capital improvement program or budget, as applicable. Policies Purposes For Which Debt May Be Issued (i) Long-Term Debt. Long-term debt may be issued to nance the construction, acquisition, and rehabilitation of capital improvements and facilities, equipment and land to be owned and operated by the Issuer. (a) Long-term debt nancings are appropriate when the following conditions exist: When the project to be nanced is necessary to provide basic services. When the project to be nanced will provide benet to constituents over multiple years. When total debt does not constitute an unreasonable burden to the Issuer and its taxpayers and ratepayers. When the debt is used to renance outstanding debt in order to produce debt service savings or to realize the benets of a debt restructuring. (b) Long-term debt nancings will not generally be considered appropriate for current operating expenses and routine maintenance expenses. (c) The Issuer may use long-term debt nancings subject to the following conditions: The project to be nanced must be approved by the City Council. The weighted average maturity of the debt (or the portion of the debt allocated to the project) will not exceed the average useful life of the project to be nanced by more than 20%. The Issuer estimates that sufcient revenues will be available to service the debt through its maturity. The Issuer determines that the issuance of the debt will comply with the applicable state and federal law. (ii) Short-term debt. Short-term debt may be issued to provide nancing for the Issuer’s operational cash ows in order to maintain a steady and even cash ow balance. Short-term debt may also be used to nance short-lived capital projects; for example, the Issuer may undertake lease-purchase nancing for equipment. (iii) Financings on Behalf of Other Entities. The Issuer may also nd it benecial to issue debt on behalf of other governmental agencies or private third parties in order to further the public purposes of Issuer. In such cases, the Issuer shall take reasonable steps to conrm the nancial feasibility of the project to be nanced and the nancial solvency of any borrower and that the issuance of such debt is consistent with the policies set forth herein. Types of Debt The following types of debt are allowable under the Debt Policy: general obligation bonds bond or grant anticipation notes lease revenue bonds, certicates of participation and lease-purchase transactions other revenue bonds and certicates of participation tax and revenue anticipation notes land-secured nancings, such as special tax revenue bonds issued under the Mello-Roos Community Facilities Act of 1982, as amended, and limited obligation bonds issued under applicable assessment statutes City of South San Francisco | FY2025-26 Budget Book Page 26 tax increment nancing to the extent permitted under state law conduit nancings, such as nancings for affordable rental housing and qualied 501c3 organizations The Issuer may from time to time nd that other forms of debt would be benecial to further its public purposes and may approve such debt without an amendment of this Debt Policy. Debt shall be issued as xed rate debt unless the Issuer makes a specic determination as to why a variable rate issue would be benecial to the Issuer in a specic circumstance. Relationship of Debt to Capital Improvement Program and Budget The Issuer is committed to long-term capital planning. The Issuer intends to issue debt for the purposes stated in this Debt Policy and to implement policy decisions incorporated in the Issuer’s capital budget and the capital improvement plan. The Issuer shall strive to fund the upkeep and maintenance of its infrastructure and facilities due to normal wear and tear through the expenditure of available operating revenues. The Issuer shall seek to avoid the use of debt to fund infrastructure and facilities improvements that are the result of normal wear and tear. The Issuer shall integrate its debt issuances with the goals of its capital improvement program by timing the issuance of debt to ensure that projects are available when needed in furtherance of the Issuer’s public purposes. The Issuer shall seek to avoid the use of debt to fund infrastructure and facilities improvements in circumstances when the sole purpose of such debt nancing is to reduce annual budgetary expenditures. The Issuer shall seek to issue debt in a timely manner to avoid having to make unplanned expenditures for capital improvements or equipment from its general fund. Policy Goals Related to Planning Goals and Objectives The Issuer is committed to long-term nancial planning, maintaining appropriate reserves levels and employing prudent practices in governance, management and budget administration. The Issuer intends to issue debt for the purposes stated in this Policy and to implement policy decisions incorporated in the Issuer ’s annual operations budget. It is a policy goal of the Issuer to protect taxpayers, ratepayers and constituents by utilizing conservative nancing methods and techniques so as to obtain the highest practical credit ratings (if applicable) and the lowest practical borrowing costs. The Issuer will comply with applicable state and federal law as it pertains to the maximum term of debt and the procedures for levying and imposing any related taxes, assessments, rates and charges. When renancing debt, it shall be the policy goal of the Issuer to realize, whenever possible, and subject to any overriding non- nancial policy considerations, (i) minimum net present value debt service savings equal to or greater than 3.0% of the refunded principal amount, and (ii) present value debt service savings equal to or greater than 100% of any escrow fund negative arbitrage. Internal Control Procedures When issuing debt, in addition to complying with the terms of this Debt Policy, the Issuer shall comply with any other applicable policies regarding initial bond disclosure, continuing disclosure, post-issuance compliance, and investment of bond proceeds. The Issuer will periodically review the requirements of and will remain in compliance with the following: any continuing disclosure undertakings under SEC Rule 15c2-12, any federal tax compliance requirements, including without limitation arbitrage and rebate compliance, related to any prior bond issues, and the Issuer’s investment policies as they relate to the investment of bond proceeds. Proceeds of debt will be held either (a) by a third-party trustee, which will disburse such proceeds to the Issuer upon the submission of one or more written requisitions, or (b) by the Issuer, to be held and accounted for in a separate fund or account, the expenditure of which will be carefully documented by the Issuer. City of South San Francisco | FY2025-26 Budget Book Page 27 Investment Management Policy Purpose The following statement is intended to provide guidelines for the “Prudent Investor Standard” of investment of the City’s temporary idle cash and to outline the policies for an effective cash management system. Prudent Investor Standard: Management of the City’s investments is governed by the Prudent Investor Standard as set forth in the California Government Code 53600.3: “…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore duciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.” The City’s cash management system’s goal is to accurately monitor and forecast revenues and expenditures enabling the City to invest funds to the fullest extent possible. The City Treasurer attempts to obtain the highest yield possible as long as investments meet the criteria established for safety and liquidity. This Investment Policy applies to all City funds except retirement, pension, or bond proceeds or bond reserves, which have their own constraining requirements. The investment policies and practices of the Treasurer of the City of South San Francisco are based upon federal, state, and local laws as well as prudent money management. The primary objectives of these policies are, in priority order: 1. To assure compliance with all federal, state, and local laws governing the investment of monies. 2. To maintain the principal of the City’s investments. 3. To remain sufciently liquid to meet all expenses. 4. After safety and liquidity are assured, to generate the maximum amount of investment income within the parameters of this statement of investment policy. Investment Objectives 1. SAFETY OF PRINCIPAL is the foremost objective of the Investment Policy. The Treasurer shall seek to ensure that capital losses are avoided within the context of the overall management of the portfolio. The objective is to mitigate credit risk (the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt) and interest rate risk (the market value of the security in the portfolio will fall due to changes in general interest rates). 2. LIQUIDITY is the second most important objective of the Investment Policy. It is important that a portion of the portfolio contain investments, which can be easily liquidated with minimal, or no risk to principal and/or interest. The longest maturity of any investment shall be ve years. The portfolio shall be structured so that sufcient funds are readily available to meet all reasonably anticipated operating expenses. 3. YIELD is the return earned on monies invested. The City’s funds shall be designed to attain a rate of return throughout budgetary and economic cycles which is approximately equal to the return on a Market Benchmark Index which will be reported to the City Council on a periodic basis. Yield will be considered only after the basic requirements of safety, liquidity, and credit quality have been met. INVESTMENT POLICY: The City is governed by the California Government Code, Section 53600 et.seq. Within the investments permitted by the Code, the City seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this policy and the Code, the more restrictive parameters will take precedence. Percentage holding limits and minimum credit quality requirements listed in this section apply at the time the security is purchased. Any investment currently held at the time the policy is adopted which does not meet the new policy guidelines can be held until maturity and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy. City of South San Francisco | FY2025-26 Budget Book Page 28 Within the context of these limitations, the following investments are authorized: U.S. TREASURY SECURITIES for which the full faith and credit of the U.S. are pledged for the payment of principal and interest. There is no limit to the percentage of the portfolio that can be invested in U.S. Treasuries. However, their maturities shall be limited to 5 years or less. FEDERAL AGENCY OR UNITED STATES GOVERNMENT SPONSORED ENTERPRISE OBLIGATIONS, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. The amount of any one issuer shall not exceed 30 percent of the portfolio, with the maturity not to exceed 5 years. The maximum percent of agency callable securities in the portfolio will be 20%. Examples include the Federal Farm Credit Bank System (FFCB), the Federal Home Loan Bank Board (FHLB), the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC), Tennessee Valley Authority (TVA). SUPRANATIONALS securities that are unsubordinated obligations issued by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), or Inter-American Development Bank (IADB). The securities must be rated in a rating category of “AA” or higher by a nationally recognized statistical rating organization (NRSRO). No more than 30% of the total portfolio may be invested in these securities. No more than 10% of the total portfolio shall be invested in any single issuer. The maximum maturity of any security of this type shall not exceed ve years. CORPORATE MEDIUM TERM NOTES issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated in a rating category of "A" or its equivalent or better by one NRSRO. Purchases of medium- term notes may not exceed 30 percent of the City’s surplus money which may be invested pursuant to this section. No more than 5% of the portfolio may be invested in any single issuer. The maximum maturity shall not be greater than ve years ASSET BACKED SECURITIES including mortgage pass‑through, collateralized mortgage obligation, mortgage‑backed or other pay‑through bond, equipment lease‑backed certicate, consumer receivable pass‑through certicate, or consumer receivable‑backed bond with a maximum maturity of ve years; excluding issuers of the US Government of its agencies. Securities eligible for investment under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by a nationally recognized rating service. Purchase of securities authorized by this subdivision may not exceed 20 percent of the City’s surplus money that may be invested pursuant to this section. COMMERCIAL PAPER must be of prime quality of the highest rating by both Moody’s and Standard and Poor’s (P-1 by Moody’s and A-1 by Standard and Poor’s). Eligible paper is limited to corporations organized and operating within the U.S. and having total assets of at least $500,000,000. There are also limitations as to the total percent (25%) of the portfolio that may be invested in commercial paper, the time of investment (270 days) and the amount of any one issuer shall not exceed 5 percent of the portfolio. NEGOTIABLE CERTIFICATES OF DEPOSIT issued by a nationally or state chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state licensed branch of a foreign bank. The amount of a negotiable certicate of deposit insured up to the FDIC limit does not require any credit ratings. Any amount above the FDIC insured limit must be issued by institutions which have short term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO. No more than 30% of the total portfolio may be invested in negotiable certicates of deposit and no more than 5% of the portfolio may be invested in any single issuer. The maximum maturity shall not be greater than 5 years REPURCHASE AGREEMENTS (Repos) allow a purchase of securities by a local agency; by agreement, the seller will repurchase the securities on or before a specied date and for a specied amount. The maturity should not exceed ninety days. Repos should only be purchased when a purchase agreement is executed with a bank in which the underlying security shall have a market value of at least: 102% for U.S. Treasuries or 105% for U.S. Agencies of the funds borrowed. Pledged securities must be held by a third party custodian. The issuing counter party shall be rated in a rating category of “AA” or its equivalent or better by nationally recognized rating services (Standard and Poor’s and Moody’s). THE LOCAL AGENCY INVESTMENT FUND (LAIF) is a pooled fund managed by the State Treasurer whose permitted investments are identied in the Government Code Section 164291. LAIF offers high liquidity as deposits and withdrawals can be wired to and from South San Francisco on the same day, provided the request is made before 10:00 A.M. No maximum limit for LAIF is set by this investment policy. City of South San Francisco | FY2025-26 Budget Book Page 29 MUTUAL FUNDS are shares of benecial interest issued by diversied management companies that are money market mutual funds registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940. To be eligible for investment, these funds must strive to maintain a net asset value of $1.00 per share at all times and: a. Attain the highest ranking in the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services; or b. Have an investment advisor registered with the Securities and Exchange Commission with not less than ve years experience investing in securities and obligations, and with assets under management in excess of ve hundred million dollars; and c. Invest solely in those securities and obligations authorized by Sections 53601 of the California Government Code. Where the City’s Investment Policy may be more restrictive than the State Code, the Policy authorizes investments in mutual funds that shall have minimal investment in securities otherwise restricted by the City's Policy. Minimal investment is dened as less than 5 percent of the mutual fund portfolio. Mutual fund investments shall not exceed 20% of the portfolio. LOCAL GOVERNMENT INVESTMENT POOLS (LGIP) pursuant to Code Section 53601(p). There is no limit to the percentage of the portfolio that can be invested in LGIPs. MUNICIPAL SECURITIES that include obligations of the City, the State of California, and any local agency within the State of California, provided that the securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO. No more than 5% of the portfolio may be invested in any single issuer. No more than 30% of the portfolio may be in Municipal Securities. The maximum maturity does not exceed ve (5) years. MUNICIPAL SECURITIES (Registered treasury notes or bonds) of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California, provided that the securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO. No more than 5% of the portfolio may be invested in any single issuer. No more than 30% of the portfolio may be in Municipal Securities. The maximum maturity does not exceed ve (5) years. PROHIBITED INVESTMENTS: Instruments not expressly authorized are prohibited. In accordance with Government Code Section 53601.6, investment in inverse oaters, range notes or mortgage derived interest-only strips is prohibited, as are derivatives. Investment in any security that could result in a zero interest accrual if held to maturity is also prohibited. The purchase of a security with a forward settlement date exceeding 45 days from the trade date is prohibited. MAXIMUM MATURITY: To the extent possible, investments shall be matched with anticipated cash ow requirements and known future liabilities. The City will not invest in securities maturing more than ve (5) years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment. SUMMARY OF AUTHORIZED INVESTMENTS: Instrument Limitations        Minimum Rating % of Portfolio % in any single Issuer Maximum Maturity Minimum Collateral U.S. Treasuries  100%100%5 years   U.S. Agencies  100%30%5 years   Supranational AA 30 %10%5 years   Corporate MTNs A 30 %5%5 years   Asset Backed Security AA 20 %5%5 years   Commercial Paper P1/A1 25 %5%270 days   Negotiable Certicates of Deposit A-1 or A 30 %5% 5 years   Municipal Securities A 30 %5%5 years   City of South San Francisco | FY2025-26 Budget Book Page 30 Local Government Investment Pools   100%     Repurchase Agreements       Issuing Counter Party AA            Collateral:                If U.S. Treasuries     102%           If U.S. Agencies     105% Local Agency Investment Fund (LAIF)  100%     Mutual Funds Aaa Moody's/ AAAm S&P 20%10%    AUTHORIZED INVESTMENTS PERSONNEL: The City Treasurer and any Deputy Treasurers he or she appoints are authorized to approve investment transactions. Deputy Treasurers shall include at a minimum the City Finance Director. MITIGATING CREDIT RISK: Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City shall mitigate credit risk by adopting the following strategies: 1. No more than 5% of the total portfolio may be invested in securities of any single issuer, other than: a. U.S. Treasuries and LAIF, which have no limit; and b. U.S. Agencies, which shall be limited to no more than 25% of the portfolio in any one issuing Agency. No more than 20% of the portfolio shall be invested in federal agency callable securities. Supranational and Money Market Mutual Fund securities shall be limited to no more than 10% of the portfolio in any one issuer. 2. The City Treasurer may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences; and, 3.  If securities owned by the City are downgraded to a level below the credit quality required by this Investment Policy, it shall be the City Treasurer’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. a. If a security is downgraded, the Treasurer will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors. b. If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the City Council. DEPOSITORY SERVICES: Monies must be deposited in state or national banks, state or federal savings and loan associations, or state or federal credit unions in the state of California. The monies may be in inactive deposits, active deposits, or interest-bearing active deposits. The deposits in any institution cannot exceed the amount of the bank’s or savings and loan’s paid up capital and surplus. The bank, savings and loan, or federal credit union must secure the active and inactive deposits with eligible government securities having a market value of at least 110% of the total amount of the deposits. Funds held in a bank should be limited to weekly cash ow needs, and excess funds should be either invested in LAIF or a money market mutual fund. Any depository institution used by the City should provide overnight sweep vehicles that comply with this Investment Policy and the State Government Code. QUALIFIED DEALERS AND INSTITUTIONS: City of South San Francisco | FY2025-26 Budget Book Page 31 Except for transactions with the State and County investment pools, the City shall transact investment business only with banks, savings and loans, and with investment securities dealers as dened in Government Code Section 53601.5: “The purchase by a local agency of any investment authorized pursuant to Section 53601 or 53601.1, not purchased directly from the issuer, shall be purchased either from an institution licensed by the state as a broker-dealer, as dened in Section 25004 of the Corporations Code, or from a member of a federally regulated securities exchange, from a national or state-chartered bank, from a federal or state association (as dened by Section 5102 of the Financial Code) or from a brokerage rm designated as a primary government dealer by the Federal Reserve bank.” The City Treasurer shall investigate institutions that wish to do business with the City in order to determine if they are adequately capitalized, make markets in securities appropriate to the City’s needs. Specically, in order to achieve these objectives: The Treasurer shall establish a list of qualied securities dealers, and shall obtain a certication submitted by all nancial institutions with which the City has an investment relationship on an annual basis. The certication shall state that the institution has reviewed the City's investment management plan and that it will: · Exercise due diligence in monitoring the activities of its ofcers and employees engaged in transactions with the City. · Ensure that all of its ofcers and employees offering investments to the City are trained in the precautions appropriate to public sector investments. In order to be qualied for use by the City, a qualifying institution must have: a. At least three years experience operating with California municipalities. In addition, individual traders or agents representing a dealer must have a minimum of one year experience operating with California municipalities; b. An inventory of trading securities of at least $10 million. SOCIAL AND ENVIRONMENTAL CONCERNS In the event the objectives mandated by state law and set forth above are met and created equal, investments in corporate securities and depository institutions will be evaluated for social and environmental concerns. Investments are discouraged in entities that receive a signicant portion of their revenues from the manufacture, processing, or exploration of fossil fuels. SAFEKEEPING AND CUSTODY OF SECURITIES: To protect against potential losses caused by the collapse of individual securities dealers, all securities owned by the City, except for investments with LAIF, Repurchase Agreements as authorized in this Policy shall be kept in safekeeping by a third party custodian acting as agent for the City under the terms of a custody agreement executed by the bank and by the City. These funds will be held in the City’s name. All trades will be executed by delivery vs. payment (DVP). This ensures that securities are deposited to the third party safe keeper prior to release of the City’s funds to the broker, for a purchase, and ensures that cash is deposited with the safe keeper prior to release of the City’s security for a sale. COMPETITIVE PURCHASE AND SALE OF ALLOWED SECURITIES: Except for purchases in LAIF or with a Mutual Fund otherwise authorized in this Policy, any purchase or sale of individual securities shall be made after soliciting at least three quotes from authorized brokers, either verbally or in writing. The Treasurer shall make the purchase or sale from the broker that offers the best executable price for the security. In the case of a tie of two or more brokers, the Treasurer shall select by his/her choice. The Treasurer shall maintain documentation relating to investment quotes for six months. ETHICS AND CONFLICTS OF INTEREST: The City Treasurer and Deputy City Treasurers shall le a State Form 700 annually, wherein they must disclose all personal assets such as stocks, bonds, properties, business entities, etc., in which said ofcials may be involved and which could create a conict of interest with the proper execution of their ofces or impair their ability to make impartial decisions. REPORTING: The Treasurer shall present to the City Council a quarterly report, within 45 days after the end of the quarter, showing the types of investments, institutions of investment, dates of maturity, amounts of deposit, current market value for all securities, rates of interest, and other such data as may be required by the City Council. City of South San Francisco | FY2025-26 Budget Book Page 32 INVESTMENT OVERSIGHT COMMITTEE: The City shall establish an Investment Oversight Committee that shall meet at least quarterly. The committee shall consist of, at a minimum, the City Treasurer, the City Manager, and the Finance Director. The purpose of the committee is to: Review the portfolio on a quarterly basis to ensure compliance with the City’s Investment Policy and the requirements of the State of California. Make recommendations to Council to change the Investment Policy where appropriate. Meet as needed to review the investment portfolio as a result of changes in the marketplace or the economic position of any company or agency that affects the City’s investments. The City Treasurer will report on any recommendations and/or actions taken by the Investment Oversight Committee in his/her quarterly investment reports to the full City Council. The Investment Oversight Committee shall meet and report at least semi- annually with the Finance/Budget/Investment Committee of the City Council. INTERNAL CONTROLS: The Treasurer and the Finance Director are responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft, or misuse. The internal control of the structure shall be designed to provide reasonable assurance that these objectives are met. Management responsibility for the investment program is delegated to the elected City Treasurer who shall be responsible for all investment transactions. The Deputy City Treasurer(s), appointed by the City Treasurer, acts at the discretion and direction of the City Treasurer. WIRE TRANSFER CONFIRMATIONS: Due to the need to preserve segregation of duties and checks and balances, all non-recurring, outgoing wire transactions initiated by the City Treasurer or a Deputy Treasurer appointed by the City Treasurer shall be conrmed by the bank with a second person, either a Deputy Treasurer or an authorized person within the Finance Department, prior to the completion of that wire transfer. Recurring/repetitive wire transactions, such as with LAIF, or to meet regular debt service payments, may be exempted from a second conrmation requirement, provided that a list of recurring wire transfers is established with the bank and that both the City Treasurer and the Finance Director approve the list. POLICY REVIEW: This Investment Policy shall be reviewed at least annually to ensure its consistency with the overall objectives of safety of principal, liquidity, and yield. The Policy should also be relevant to current law, nancial and economic trends, and should meet the needs of the City of South San Francisco. City of South San Francisco | FY2025-26 Budget Book Page 33 BUDGET OVERVIEW City of South San Francisco | FY2025-26 Budget Book Page 34 About the Budget Budget Document The City typically prepares an annual budget as a management tool to plan and control its revenues and operational expenditures over a one-year scal period, which begins on July 1 and ends on June 30 of the following year. In June 2021, the City transitioned from the manually intensive process of creating a physical budget book to the new, more user-friendly, online and interactive ClearGov budget platform. This platform includes all the information typically found in a traditional budget book, such as a transmittal letter from the City Manager, historical and demographic information about the City, a statement of values and strategic priorities, details of the budget process, an overview of the budget, department summaries, fund summaries, revenue and expenditure breakdowns (including fund balances), capital improvement plan (CIP) details, and information on outstanding debt. ClearGov has also enabled a more efcient collection and presentation of the City's CIP budget, thereby freeing up staff time for other activities. The FY2025–26 budget will mark the fth budget cycle using the ClearGov platform. Budget Basis In accordance with the Governmental Accounting Standards Board (GASB), the City’s funds are grouped into three fund types; governmental, proprietary, and duciary. Each fund type is divided into major and non-major where a major fund represents a fund or fund category that has revenues and expenditures that equal more than ten percent of the City's entire appropriated budget. Each fund is further classied into the following categories: general fund, special revenue, CIP, enterprise and internal service. This budget document will focus in more detail on the General Fund, as it is the main operating fund of the City. The City budgets and accounts for governmental funds on a modied accrual basis, except for encumbrances and the Capital Improvement Fund. This means that revenues are recognized when measurable and available. As an example, when the City issues an accounts receivable invoice, the revenue is recognized even though the cash has not been deposited in the bank. The City considers revenues reportable if they are collected within sixty days of year end. Expenditures are recognized when the liability is incurred, except for the interest in general long-term obligations which is recorded when due. All expenditure appropriations lapse at the scal year end. The City budgets and accounts for Proprietary Funds on a full accrual basis. Encumbrances are considered expenditures in the year of the purchase order issuance. If the encumbrance is unused at year end, it is re-appropriated the following year, unless no longer needed, in which case the purchase order is closed, the encumbrance is removed and the unused amount ows back to fund balance. The Capital Improvement Fund is adopted on a multi-year project basis, but reviewed each year during the normal budget cycle when adjustments can be made to existing projects and new projects introduced. Funds for specic projects receive an annual appropriation and any unused appropriation is rolled forward to the following year unless the budget is no longer needed. City of South San Francisco | FY2025-26 Budget Book Page 35 Budget Process and Timeline Budget Process The operating budget, laid out by department and by major fund, is rst presented in May to the Budget Standing Committee (BSC) which is made up of two City council members who review the initial proposal. Following input from the BSC, any required updates are made prior to a study session where the updated operating budget is presented to the full City Council with an opportunity for public input. Any additional changes are incorporated following the study session and prior to nal adoption of the budget at a regular City Council meeting later in June, whereupon amounts stated in the budget documents presented to Council become appropriations in the new scal year for the various City departments and funds. Appropriations are controlled at the individual account level. CIP project budgets are adopted and controlled at the project level. The City Council may amend the budget by resolution during the scal year. The resolution to adopt the operating budget presented to the City Council includes the guidelines of how the budget may be increased without a resolution approved by the City Council. To summarize the guidelines outlined in the resolution; the Director of Finance may increase the expense and revenue budgets where there is a zero net impact on the fund and the City Manager may authorize the transfer of budget amounts between projects within the same fund. All other budgetary changes after the budget adoption are subject to approval by the City Council. In addition to any budget amendment that may occur during the scal year, the Finance department presents a mid-year review of expenditures and revenues of the City’s nances to the City Council, usually following release of the nal audited nancial statements from the previous scal year. At the time of the mid-year budget review, Finance can recommend budget amendments to the City Council. To further assist the City and its departments to track revenues and expenditures, budgets are divided into the following categories: Revenue Types . Taxes: Collected on property and sales, transient occupancy (hotel tax), business license, and use of parking facilities; . Franchise Fees: Paid by utility companies (i.e. cable, telephone, garbage) to operate within the City; . Licenses & Permits: Includes fees paid for building, planning, and re inspections and permits; alarm registrations; . Fines & Forfeitures: The City’s share of trafc related nes, code enforcement, library nes, and false alarm nes; . Intergovernmental: Includes grants from local, county, state, and federal government agencies; . Charges for Services: Includes paramedic and basic life support service fees, certain police service fees, charges for recreational classes, day care, and library programs, as well as the General Fund administration fee charged to other funds; . Use of Money & Property: Includes revenue from land rental and interest income; . Other Financing Sources: Accounts for the proceeds of debt issuance; . Other Revenues: Includes donations to various City programs and one-time revenues that cannot be categorized in another revenue area; . Transfers: This revenue source reects internal transfers between funds. Some revenues such as Gas Tax are deposited into a special revenue fund then transferred to the fund where the expenditures are recorded.   Expenditure Types: . Salaries & Benets: These are expenditures for employee salaries, health benets, retirement benets, insurance, and other miscellaneous benets; . Supplies & Services: These expenditures are for contract services, consultants, ofce supplies, utilities, etc.; . Capital Outlay: These expenditures are reserved for purchases of land, vehicles, or equipment; . Debt Service: This expenditure category is used to pay for principal and interest of loans, bonds, leases, and other credit issued to the City; . Interdepartmental Charges: These expenditures include departmental liability insurance, charges for vehicle maintenance done at the City Garage, and charges for computer support provided by the Information Technology Department; . Transfers: These expenditures are internal transfers from one fund to another fund. City of South San Francisco | FY2025-26 Budget Book Page 36 Budget Timeline The process to develop the operating budget begins in the middle of the current scal year. Over a period of six months, the Finance Department collaborates with the City Council, City Manager, and department executives to formulate and rene budget projections for the upcoming scal year. The following table outlines the steps in preparation of a typical one-year budget. Month Description December The Finance Department (Finance) begins the current scal year mid-year analysis. Finance updates revenue and expenditure projects for the upcoming scal year. January The City Manager and Finance Director meet to discuss trends, look at nancial projections, identify budget issues, and develop budget goals for the upcoming scal year. Finance creates budget targets for departments based on City Council's goals and City Manager's direction. February The City Manager begins discussions with department heads for preliminary budget projections by department. March Finance renes revenue forecasts for the current scal year. Uses revenue forecasts to develop updated upcoming scal year revenue assumptions. Finance collaborates with Human Resources to update personnel and benet budget forecasts. Finance provides departments with their benet costs. Departments enter budget requests, including minor maintenance project requests, into the nance system. April Finance develops revenue and expenditure scenarios for the upcoming scal year based on input from City Manager. The City Manager reviews new budget requests with the Finance Director. Finance collaborates with the Engineering Division to update the capital Improvement plan, forecasting funding sources and identifying new appropriations. May Finance presents the proposed budget to the Budget Standing Committee of the City Council at study session. Finance revises the budget based on Budget Standing Committee feedback, and then presents the proposed budget to the City Council at a subsequent study session. June Finance prepares the proposed budget and makes any nal adjustments based on feedback from City Council, and updated revenue projects from the State and County. Finance presents the proposed budget at a regularly scheduled Council meeting. The Engineering Division separately proposed new appropriations for Capital Improvement Projects to the City Council. The City Council adopts the proposed operating budget and through a separate resolution, adopts Capital Improvement appropriations for the upcoming scal year. July July 1 begins the new scal year. City of South San Francisco | FY2025-26 Budget Book Page 37 City of South San Francisco | FY2025-26 Budget Book Page 38 Fund Structure The City of South San Francisco's accounting system is split into a number of different funds, each of which has a different purpose and created to account for revenues and expenditures restricted by federal or state law, or specic programs enacted by the City Council, or unrestricted for general use.  Each fund is classied in accordance with guidance from the Governmental Accounting Standards Board (GASB) into Governmental, Proprietary or Fiduciary, which determines its accounting treatment, and further classied into major/non-major funds based on the percentage of city-wide revenues and expenditures accounted for within the fund.  Many of these funds are also budgeted in addition to the City's main General Fund.  Details of the budget for each of these funds are included in the Fund Summaries section of the budget. A list of the City's budgeted funds are given below. Governmental Funds Major Governmental Funds General Fund – The General Fund is always considered a major fund. It accounts for all nancial resources except those accounted for in other funds and provides services traditionally associated with government such as administration, public safety, library, parks and recreation and maintenance outside of those accounted for in other funds.  Revenues include property tax, sales tax, transient occupancy tax, licenses and permits, charges for services, grants, rents, interest income and donations.   Measure W - Accounts for revenue from a transactions and use tax approved by South San Francisco voters in November 2015. Revenues in this fund primarily fund debt service on bond issuances related to large capital improvement projects such as the new Civic Center Campus, Street Rehabilitation and Solar Roof Installation at the City's corporation yard.   Developer Deposit/Contribution Fund – Accounts for deposits from developers to pay for services required to review planning applications and accounts for contributions from developers to the City as part of development agreements. Primary reserves include General Plan Maintenance Reserve and Permit Program Maintenance Reserve.   City Housing Fund – Accounts for Housing Successor activities for low and moderate area median income (AMI).   Capital Improvement Fund – Accounts for revenues and expenditures associated with the acquisition, construction, or improvement of City owned facilities and infrastructure. Funding comes from the General Fund, Special Revenue Funds, grants, and fees.   Capital Infrastructure Fund – Accounts for funds to address city-wide infrastructure liabilities generated during the Great Recession.   Capital Improvements - Civic Campus Phase I (Police Station) (Bond-funded) - Accounts for the bond-funded element of Phase I of the Civic Center Campus design and construction capital improvement project.    Capital Improvements - Civic Campus Phase I (Police Station) (non-Bond-funded) - Accounts for the non-bond funded element of Phase I of the Civic Center Campus design and construction capital improvement project.   Capital Improvements - Street Pavement (Bond-funded) - Accounts for the street pavement rehabilitation capital improvement projects that are funded by bond issuance.    Capital Improvements - Solar Rooves (Bond-funded) - Accounts for the solar roof installation capital improvement project funded by bond issuance.   Capital Improvements - Civic Campus Phase II (LPR) (Bond-funded) - Accounts for Phase II of the Civic Center Campus construction and solar roof installation capital improvement project that is bond-funded.   Capital Improvements - Orange Memorial Park Balleld (Bond-funded) - Accounts for bond-funded element of the construction of a new balleld at Orange Memorial Park.   Capital Improvements - Orange Memorial Park Playground (Bond-funded) - Accounts for bond-funded element of a replacement playground at Orange Memorial Park.   Capital Improvements - Aquatic Center (Bond-funded) - Accounts for construction of a new Aquatics Center, which includes a new swimming pool, at Orange Memorial Park. This is fully-funded by bond nancing. City of South San Francisco | FY2025-26 Budget Book Page 39   Capital Improvements - Colma Creek Bridges (Bond-funded) - Accounts for bond-funded element of replacement of two pedestrian bridges over Colma Creek at Orange Memorial Park. Non Major Governmental Funds American Rescue Plan Act (ARPA) Fund - Accounts for ARPA funds received from the federal government fees as part of the COVID-19 pandemic response.   Affordable Housing Trust Fund - Accounts for in-lieu fees (in-lieu of production of affordable housing units by the developer) to provide new residential development's share of affordable housing units.   Park-in-Lieu Fees Fund - Accounts for fees received in-lieu of park land dedication in proposed residential subdivision developments.  Fees received into this fund can only be used for acquiring land and developing new park and recreation facilities or for rehabilitation of existing parks and related facilities.   Gas Tax – Accounts for State monies received and expended for street or storm drain improvements, repairs, engineering, and administration under Streets and Highway Code Sections 2103, 2105, 2106, 2107, 2107.5 and Road Rehabilitation Act of 2017. Includes sales tax on gasoline received from the State’s Trafc Congestion Relief Fund.   Measure A: ½ Cent Transportation Sales Tax Fund – Accounts for the half-cent sales tax in the County of San Mateo that provides resources for street repairs and improvements, transit improvement and trafc congestion relief.   Road Maintenance & Rehabilitation Act (SB1) Fund - Accounts for receipt and expenditure of funds from the state that are used solely towards the rehabilitation of streets within the City.   Measure W: ½ Cent Congestion Relief and Road Repair Fund – This is a new fund for FY19-20 that accounts for the half- cent sales tax approved by San Mateo County voters in November 2018. The City receives a portion of the sales tax receipts for road repair.   Community Development Block Grant Fund – Accounts for Federal monies received to be expended for development of social services for lower-income residents.   Common Greens Maintenance District Funds – Accounts for property taxes earmarked to provide funds for the maintenance of landscaped areas within designated housing developments also known as West Park Maintenance District 1 & 2, Stonegate Maintenance District and Willow Gardens Maintenance District. These property taxes come out of the City’s regular property tax allocation.   Oyster Point CFD Special Tax B Fund - Accounts for tax revenue owing to the City related to the Oyster Point Community Facilities District (CFD) that was created in FY2021-22 for the development of the Oyster Point area within the City by the Kilroy Realty group.   Solid Waste Reduction Fund – Accounts for solid waste franchise revenues received to support environmental compliance costs associated with solid waste. A portion of the revenues are used to support the monitoring and remediation of the closed Oyster Point landll.   Supplemental Law Enforcement Fund -  Accounts for the receipt and expenditure of funds from the state via the county of San Mateo to be spent on front-line law enforcement services.   City Programs Fund – Accounts for funds and donations that are dedicated for specic City Departments or programs. Primary reserves include Asset Seizure and Project Read.   Debt Service Fund - Accounts for all governmental fund loans or bond payments such as those associated with the acquisition, construction and installation of capital improvements. It receives transfers from other funds, such as Measure W for the bond repayments.   Sewer Capacity Charge Fund - Accounts for sewer capacity charges paid by users that connect to sewer facilities for the rst time and by users who increase their sanitary sewer usage.  Fees can be used to fund the replacement or upgrade of sewer infrastructure within the City.   City of South San Francisco | FY2025-26 Budget Book Page 40 PEG Access Fund – This fund accounts for the one percent of money set aside from franchise fees that are used to support public, educational and governmental (PEG) channels. Impact Fee Funds – Account for various Mitigation Fee Act funds. Each "Impact Fee" has its own fund - the full list of impact fees is as follows: Park Land Acquisition Fee, Park Construction Fee, East of 101 Sewer Impact Fee, East of 101 Trafc Impact Fee, Public Safety Impact Fee, Bicycle and Pedestrian Impact Fee, Commercial Linkage Impact Fee, Library Impact Fee, Public Arts In-lieu Impact Fee, Child Care Impact Fee and the Oyster Point Interchange Impact Fee. These funds are not used for operations but primarily serve as funding sources for capital improvement projects.     Proprietary Funds Major Proprietary Funds Sewer Enterprise Fund – Accounts for user charges supporting the operation, maintenance, and capital renovation of the wastewater collection and treatment system. The City co-owns and operates a regional treatment plant with the City of San Bruno.   Parking District Fund – Accounts for meter and parking permit fees used to maintain or expand parking facilities in the downtown area.   Storm Water Fund – Accounts for user charges sustaining the Storm Water Management Program mandated by state and federal authorities. In order to meet the increasingly strict environmental requirements, the General Fund and Gas Tax Fund subsidize the Storm Water Fund. Non Major Proprietary Funds City Service Fund – Internal service fund that accounts for vehicle maintenance services provided to City departments.   Self-Insurance Fund – Internal service fund that accounts for costs associated with workers compensation and general liability.   Health and Benets Fund – Internal service fund that accounts for health and retirement benets paid on behalf of eligible City employees.   Equipment Replacement Fund – Internal service fund that accounts for ongoing equipment and vehicle purchases as well as resources set-aside for future replacement of City vehicles and equipment.   Information Technology Fund – Internal service fund that accounts for information technology services provided to City departments. City of South San Francisco | FY2025-26 Budget Book Page 41 Operating Funds Titles and Types All of the funds in the following table are appropriated by the City Council. They are categorized into Governmental and Proprietary funds in line with the GASB fund classications, classied into major and non-major funds, and further sub- categorized into general fund, enterprise fund, special revenue fund, CIP fund or internal service fund. The Internal Service Funds are paid through charges to departments in all other funds. Budgeted Operating Funds Fund Title Fund #Category Governmental Funds       General Fund            General Fund 100 General Fund         Measure W 101 General Fund      Special Revenue         City Housing Fund 241 Special Revenue         Developer Deposits/Contributions Fund 270 Special Revenue      Capital Improvement Funds         Capital Improvements Fund 510 CIP Fund         Capital Infrastructure Fund 513 CIP Fund         Capital Improvements (Bond Funded) - Civic Campus Phase I Fund 515 CIP Fund         Capital Improvements (non-Bond Funded) - Civic Campus Phase I Fund 516 CIP Fund         Capital Improvements (Bond Funded) - Street Pavement Fund 517 CIP Fund         Capital Improvements (Bond Funded) - Civic Campus Phase II Fund 518 CIP Fund         Capital Improvements (Bond Funded) -                    Orange Memorial Park Balleld Fund 522 CIP Fund          Capital Improvements (Bond Funded) -                   Orange Memorial Park Playground Fund 523 CIP Fund           Capital Improvements (Bond Funded) - Aquatic Center Fund 524 CIP Fund           Capital Improvements (Bond Funded) - Colma Creek Bridges Fund 525 CIP Fund    Non-Major Funds         Special Revenue            American Rescue Plan Act Fund 201 Special Revenue         Affordable Housing Trust Fund 205 Special Revenue         Park-In-Lieu Fees Funds 206-209 Special Revenue         Gas Tax Fund 210 Special Revenue         Measure A 1/2 Cent Sales Tax Fund 211 Special Revenue         Road Maintenance & Rehabilitation Act (SB1) Fund 212 Special Revenue         San Mateo County Measure W 1./2 Cent Sales Tax Fund 213 Special Revenue         Community Development Block Grant Fund 222 Special Revenue         Common Greens Maintenance District Funds 231-234 Special Revenue         Oyster Point CFD Special Tax B 236 Special Revenue         Solid Waste Reduction Fund 250 Special Revenue         Supplemental Law Enforcement Services 260 Special Revenue         Debt Service Fund 461 Special Revenue         City Programs Fund 280 Special Revenue         Sewer Capacity Charge Fund 730 Special Revenue         PEG Access fund 786 Special Revenue         Impact Fee Funds 805, 806, 810, 820, 821- 825, 827, 830, 840 Special Revenue    Proprietary Funds        Major Funds - Enterprise Funds             Sewer Enterprise Fund 710 Enterprise Fund          Parking District Fund 720 Enterprise Fund          Storm Water Fund 740 Enterprise Fund City of South San Francisco | FY2025-26 Budget Book Page 42        Non-Major Funds - Internal Service Funds             City Services fund 781 Internal Service Fund          Self Insurance Fund 782 Internal Service Fund          Health & Benets Fund 783 Internal Service Fund          Equipment Replacement Fund 784 Internal Service Fund          Information Technology Fund 785 Internal Service Fund Relationships between Funds and Departments Some operating departments use funds other than the General Fund for departmental acrtivities as shown in the table below. City of South San Francisco | FY2025-26 Budget Book Page 43 Appropriations Limit In November 1979, California voters approved Proposition 4, which created Article XIIIB of the State Constitution, a state law that requires the state and local governments to adopt an annual appropriation limit. This limit, also referred to as the "Gann Limit", establishes a limit on tax proceeds that may be appropriated for spending in a given scal year. The limit allows the City's spending of tax proceeds to increase only by population growth and cost-of-living factors from the base year of 1978-1979.  Since its initial passage, the Gann Limit calculation has been modied through various propositions. The most recent modication was approved by the voters in 1990 under Proposition 111 which the GANN limit is calculated based on previous year's appropriations plus a per capita personal income (CPI) change percentage and a population change percentage. Currently, the City of South San Francisco uses the CPI and population statistics provided by the California Department of Finance to formulate the Gann Limit for the City for each scal year. For Fiscal Year 2025-26, the City is projected at 63% of the limit, $72 million under the Gann Limit as shown in the table below.   Fiscal Year CPI/Personal Income % Change Population % Change Change Factor Cumulative Change Factor Appropriation Limit Proceeds of Taxes / Appropriations Subject to Limit Amount Under the Limit 2015-16 3.82%0.68%4.53%524.19%121,263,600 62,981,924 58,281,676 2016-17 5.37%0.43%5.82%560.52%128,321,142 75,222,871 53,098,271 2017-18 3.69%0.11%3.80%585.62%133,197,345 82,850,044 50,347,301 2018-19 3.67%0.49%4.18%614.28%138,764,994 85,548,494 53,216,500 2019-20 3.85%0.04%3.89%642.07%144,162,953 92,903,301 51,259,652 2020-21 3.73%0.98%4.75%677.31%151,010,693 83,865,039 67,145,654 2021-22 5.73%-0.88%4.80%714.63%158,259,206 87,751,448 70,507,758 2022-23 7.55%-0.92%6.56%768.07%168,641,010 99,465,705 69,175,306 2023-24 4.44%0.00%4.44%806.61%176,128,671 114,872,716 61,255,955 2024-25 3.62%-0.25%3.36%837.08%182,048,268 115,997,004 66,051,264 2025-26 6.44%0.40%6.87%901.42%194,547,265 122,419,426 72,127,839 City of South San Francisco | FY2025-26 Budget Book Page 44 City of South San Francisco | FY2025-26 Budget Book Page 45 FUNDING SOURCES City of South San Francisco | FY2025-26 Budget Book Page 46 City-wide Budgeted Revenues Total FY 2025–26 budgeted citywide revenues (excluding interfund transfers but including payments to internal service funds) are $19.79 million higher than the adopted FY 2024–25 revenues. The primary drivers of this increase include: . A $6.2 million increase to expected tax revenue to bring it inline with the mid-year adjustment in the General Fund. . A $1.3 million decrease the expected sale tax revenue for Measure W sales tax. . A $0.76 million decrease in Community Development Block Grant revenue as annual grant allocations are excluded from the budget due to the timing of federal award announcements. These funds will be appropriated through a budget amendment upon grant award. . A $5.3 million increase in Sewer Enterprise revenue. These reect both higher operating rate revenue and increased capital funding from participating agencies. . A $1.5 million increase in Commercial linkage Impact fee revenue, resulting from a multi-year agreement with a developer to provide annual payments. . A $6.7 million increase in the Benets fund, due to higher payroll deductions and employer contributions required to fund expanded employee benet costs. 56.8% of the citywide revenues budgeted in FY 2025-26 are accounted for by the General Fund ($139.0 million which excludes transfers in).  Transfers in from other funds are excluded from this summary since they do not represent new revenues coming into the city from external sources, rather they can articially increase city-wide revenues, giving the impression that revenues are higher in a particular fund when those transfers are in fact offset by transfers out (expenditure) in another fund. 244 ,734 ,933 $19,794,974 (8.80% vs. prior year) Budgeted City-wide Revenues vs Historical Actuals Actual Budgeted FY2024 FY2025 FY2026 $0 $50M $100M $150M $200M $250M $300M $350M City of South San Francisco | FY2025-26 Budget Book Page 47 Budgeted Revenues by Fund General Fund (100) (56.8%)General Fund (100) (56.8%)General Fund (100) (56.8%) Internal Service Fund (15.4%)Internal Service Fund (15.4%)Internal Service Fund (15.4%) Sewer Enterprise Fund (710) (14.8%)Sewer Enterprise Fund (710) (14.8%)Sewer Enterprise Fund (710) (14.8%) Measure W (101) (6%)Measure W (101) (6%)Measure W (101) (6%) Developer Deposits (1%)Developer Deposits (1%)Developer Deposits (1%) Common Greens MaintenanceCommon Greens Maintenance District Funds (0.9%)District Funds (0.9%) Common Greens Maintenance District Funds (0.9%) Gas Tax Fund (0.9%)Gas Tax Fund (0.9%)Gas Tax Fund (0.9%) General Fund (100)$147,975,169 $132,759,677 $142,989,079 $138,994,897 4.7% Measure W (101)$15,773,938 $16,000,000 $14,500,000 $14,645,200 -8.5% American Rescue Plan Act $4,988,611 $0 $0 $0 0% Affordable Housing Fund $25,449 $0 $0 $277,700 N/A Park In-Lieu Fee Fund Park In-Lieu Fee Zone 1 Fund (206)$6 $0 $0 $0 0% Park In-Lieu Fee Zone 2 Fund (207)$545 $0 $0 $0 0% Park In-Lieu Fee Zone 4 Fund (209)$93,838 $0 $0 $0 0% Total Park In-Lieu Fee Fund:$94,389 $0 $0 $0 0% Gas Tax Fund $2,073,224 $2,100,300 $2,100,300 $2,145,000 2.1% Measure A-1/2 Transportation Sales Tax $2,466,962 $2,106,000 $2,106,000 $2,134,700 1.4% Road Mntc & Rehab (Sb1)$1,834,632 $1,696,230 $1,696,230 $1,738,000 2.5% Smc Measure W 1/2 Cent Sales Tax $1,140,687 $974,258 $974,258 $956,780 -1.8% Community Development Block Grant $254,638 $761,019 $761,019 $5,000 -99.3% Common Greens Maintenance District Funds West Park Maint Dist 3 (231)$1,131,095 $1,057,877 $1,057,877 $1,057,877 0% Stonegate Ridge Maint (232)$389,537 $354,310 $354,310 $354,310 0% Willow Gardens Maint (233)$186,801 $115,586 $115,586 $115,586 0% West Park Maint Dist 1&2 (234)$723,135 $690,973 $690,973 $690,973 0% Total Common Greens Maintenance District Funds:$2,430,568 $2,218,746 $2,218,746 $2,218,746 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 48 Oyster Point CFD Special Tax B $199,016 $200,000 $200,000 $200,000 0% City Housing Fund $301,534 $182,000 $182,000 $182,000 0% Solid Waste Reduction $228,666 $344,900 $344,900 $344,900 0% Supplemental Law Enforcement Services $188,029 $160,000 $160,000 $160,000 0% Developer Deposits $930,151 $1,593,682 $1,593,682 $2,500,000 56.9% City Programs Special Rev Fund $2,258,969 $0 $0 $0 0% Transit Station Enhancement In-Lieu Fee $115,379 $0 $0 $0 0% Sewer Capacity Charges $1,976,092 $1,300,000 $1,300,000 $1,300,000 0% Park Land Acquisition Fee $137,615 $0 $0 $0 0% Park Construction Fee $2,619,888 $0 $0 $0 0% E. Of 101 Sewer Impact Fees Fund $1,095,485 $0 $0 $0 0% E. Of 101 Traffic Impact Fees $1,537,998 $0 $0 $0 0% Public Safety Impact Fee $574,675 $0 $0 $0 0% Bicycle And Pedestrian Impact Fee Fund $26,222 $0 $0 $0 0% Commercial Linkage Impact Fee $7,365,537 $0 $0 $1,500,000 N/A Library Impact Fee $39,629 $0 $0 $0 0% Citywide Transportation Impact Fee $10,502,836 $0 $0 $0 0% Cultural Arts Impact Fee Fund $519,579 $0 $0 $0 0% Child Care Impact Fees Fund $1,089,174 $0 $0 $0 0% Oyster Point Interchange Impact Fees Fun $903,281 $0 $0 $0 0% Capital Improvements (510)$3,750,017 $0 $37,581,902 $0 0% Capital Infrastructure Reserve Fund (513)$1,079,323 $0 $54,000 $0 0% Capital Improvements – Oyster Point Development (514)$49,152 $0 $0 $0 0% Capital Improvements – New Police Station (515)$5,258 $0 $140,000 $0 0% Capital Improvements Civic Campus Phase (516)$1,796,924 $0 $1,500,000 $0 0% Capital Improvements – Civic Campus Bond-funded (519)$286,849 $0 $0 $0 0% Capital Improvements - Aquatics Center Bond-funded (524)$2,214,306 $0 $0 $0 0% Sewer Enterprise Fund (710)$37,803,463 $30,801,329 $39,151,895 $36,123,685 17.3% Parking District Fund (720)$1,175,468 $900,000 $900,000 $1,000,000 11.1% Storm Water Fund (740)$1,095,029 $477,270 $477,270 $477,270 0% Internal Service Fund City Service Fund (781)$2,733,285 $2,717,982 $2,717,982 $2,717,982 0% Self Insurance Fund (782)$7,529,292 $5,299,950 $5,299,950 $5,299,950 0% Benefits Fund (783)$19,231,931 $15,701,788 $15,701,788 $22,394,000 42.6% Equipment Replacement (784)$2,804,176 $2,569,579 $2,569,579 $2,569,547 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 49 Information Technology (785)$4,185,439 $3,945,249 $3,945,249 $4,719,575 19.6% Total Internal Service Fund:$36,484,124 $30,234,547 $30,234,547 $37,701,054 24.7% PEG Equipment & Access (786)$148,695 $130,000 $130,000 $130,000 0% Total:$297,556,628 $224,939,958 $281,295,827 $244,734,933 8.8% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Budgeted Revenues by Type The chart below illustrates that taxes are the largest source of citywide revenue, making up 50.1% of total revenues. The second-largest category is Charges for Services, which accounts for 20.7% of total revenues. Of that 20.7%, approximately 70% comes specically from Sewer rate revenue. The remaining 29.2% consists of various other sources, including rent, interest income, franchise fees, nes, licenses and permits, and intergovernmental grants. 50.1%50.1%50.1% 20.7%20.7%20.7% 16.6%16.6%16.6% 4.4%4.4%4.4% 2.8%2.8%2.8% 2.6%2.6%2.6% 2.4%2.4%2.4% 0.4%0.4%0.4% Taxes Charges for Services Other Revenues Licenses & Permits Revenue From Other Agencies Franchise Fees Interest & Rent Fines & Forfeitures City of South San Francisco | FY2025-26 Budget Book Page 50 MillionsFines & Forfeitures Interest & Rent Franchise Fees Revenue From Other Agencies Licenses & Permits Other Revenues Charges for Services Taxes FY2024FY2025FY2026$0 $50 $100 $150 $200 $250 $300 $350 Property Tax remains the City’s largest revenue source, projected at $56.9 million for FY 2025-26. Over the past ve years, property tax revenues have grown at an average annual rate of 6%, fueled by a strong economy and signicant development activity. This growth is reected in the assessed property values in South San Francisco, which increased by 12% in 2023 and 9% in 2024. However, in 2025, the growth in assessed values slowed sharply to just 2.23%. As a result, staff have projected only a modest increase in property tax revenue compared to the current year’s adjusted budget. While the growth rate is lower, staff have revised the forecasting methodology to use the adjusted budget as the baseline, rather than the prior year’s base budget as was previously done. Since the adjusted budget is signicantly higher than the base, this change results in a notable increase when compared to the prior base budget. Growth in this revenue stream is further constrained by the increasing risk of shortfalls in Property Tax In-Lieu of Vehicle License Fee (VLF) revenue, driven by the declining number of non-basic aid schools. The State is expected to consider this claim for appropriation as part of its FY 2025-26 budget. However, at the time of budget adoption, Governor Newsom’s proposed FY 2025-26 budget does not include any appropriations to cover the FY 2023-24 shortfall, of which the City’s share is $4.8 million. Although the State has consistently appropriated funding for San Mateo County’s VLF shortfalls since FY 2019-20, these funds are now at signicant risk due to mounting State budget pressures and a sharp increase in the shortfall over the past three years. The City has submitted a letter to its state representatives to address this matter. To be conservative, staff have excluded the FY 2023-24 VLF backll from the budget but will continue to monitor the situation and update projections as needed. Despite these issues, property tax revenues are projected to increase by $6.7 million, which represents a 13.3 percent increase over the FY 2024-25 adopted budget, primarily due to the City’s growing share of property tax residuals from the former Redevelopment Agency (RDA). Additionally, if the state backlls the FY 2023-24 VLF shortfall, the City’s projected property tax revenue will increase by $4.8M. Sales Tax revenues in the City of South San Francisco have uctuated in response to various economic factors. Since the adoption of the FY 2024-25 budget, the City’s sales tax consultant has revised projections downward due to rising unemployment, a shift in consumer spending from taxable goods to non-taxable services, and increasing costs in key areas such as housing, insurance, groceries, energy, healthcare, and education. By the end of 2024, only 6 of California’s 58 counties reported positive sales tax growth, while 26 counties experienced year-over-year declines of at least 4% in the local 1% Bradley-Burns revenue. Statewide, sales tax revenues have declined for seven consecutive quarters, with an eighth projected. City of South San Francisco | FY2025-26 Budget Book Page 51 Consumer sentiment remains one of the most signicant drivers of sales tax revenue. Amid ongoing uncertainty related to tariffs and persistent inationary pressures, consumer spending has slowed, contributing to the deceleration in sales tax growth and overall revenue performance. Sales tax revenues in FY 2025-26 are expected to decrease by $2 million, or 8.6 percent, compared to the FY 2024-25 adopted budget, as discussed during the FY 2024-25 Mid-Year budget meeting in February 2025. The City’s sales tax revenue is particularly sensitive to gas prices, as gasoline sales tax makes up a signicant portion of overall sales tax revenue. As such, any major uctuations in gas prices can directly affect revenue performance. At mid-year, California was experiencing lower gasoline prices. With the planned closures of reneries in the East Bay, the impact on gasoline price remains to be seen. In response, and based on updated guidance from the City’s sales tax consultant, a FY 2024-25 mid-year adjustment was made to revise the sales tax forecast downward. For FY 2025-26, projected sales tax revenue is $21.2 million. While this is $2.0 million lower than the FY 2024-25 adopted budget, it is slightly higher than the revised mid-year estimate. This projection aligns with the updated trend and reects a stabilization in revenue following the reclassication. Transient Occupancy Tax (TOT) revenue has experienced a strong recovery since the pandemic, reecting renewed domestic travel activity. However, recent declines in international tourism raise concerns, and the full extent of their impact on TOT revenue remain to be seen. In FY 2024-25, hotel occupancy reached 66 percent. For FY 2025-26, we project a 68% occupancy rate. Based on this assumption, staff expects TOT revenue to increase by $0.8 million, representing a 5.4% increase over last year’s adopted budget. Other Tax revenues, comprised primarily of the Business License Tax and Commercial Parking Tax, continue the upward trend projected at mid-year. At that time, Business License Tax revenue was revised upward by $1 million. This additional increase results in a total of $2 million above the prior year’s adopted budget, driven by the voter-approved tax update. Staff have increased Commercial Parking Tax revenue to match current-year actuals. Franchise Fee revenues are expected to remain at in FY 2025-26 compared to FY 2024-25. The total includes a one-time electronic billboard revenue of $1.4 million, which was originally budgeted in FY 2024-25. However, due to delays in receiving the funds, this amount is being carried forward into FY 2025-26. The revenue is not expected to recur in future years and should be treated as a one-time adjustment rather than ongoing income. Licenses and Permit revenues remained relatively stable prior to FY 2022-23, supported by strong construction activity and robust economic development throughout the City. A surge in permits issued occurred in FY 2022-23 as developers rushed to submit applications ahead of anticipated building code changes and fee increases, resulting in a temporary spike. However, rising interest rates driven by persistent ination beginning in mid-2022, combined with increased market uncertainty and regional bank failures, created a more challenging environment for developers in FY 2023-24. These conditions contributed to a slowdown in project activity. Despite these challenges, staff remains cautiously optimistic about future development but continues to take a conservative approach to revenue projection. Permit revenues for FY 2024-25 were adopted at $13.2 million and later adjusted upward to $13.6 million at mid-year. However, for FY 2025-26, permit revenues are projected to decline by $2.5 million, bringing the total to $10.7 million. This represents a signicant decrease by the Building Division, partially offset by increases from the Fire and Public Works departments. The overall decline reects continued softness in the development market, driven by persistently high interest rates and ongoing economic uncertainty. Intergovernmental revenue primarily consists of grants and includes mutual aid cost recovery for the Fire Department’s response to disasters outside the City. This revenue has been increased by $400 thousand to align with the four-year historical trend. However, the trafc signal maintenance fee, previously budgeted at $275 thousand, will no longer be recorded as intergovernmental revenue and has been reduced to $0. The FY 2025-26 budget also includes the continuation of two multi-year library grants totaling $232 thousand. As a result, the net projected increase in intergovernmental revenue is $285 thousand, or 10.7%, when compared to the FY 2024-25 adopted budget. Charges for Services for FY 2025-26, staff expect to see variable changes across different departments. Economic and Community Development (ECD) and Parks and Recreation (P&R) are projected to have increases of 86% and 3% respectively. ECD’s increase is due to the expectation that more projects will start over next year. However, the City anticipates lower revenue from the Fire Department for their participation in the ambulance program of about $350 thousand, a 9% decrease from the FY 2024-25 adopted budget. Use Money & Property is budgeted at the same level as FY 2024–25. The primary source of revenue for this category is investment in the U.S. Treasuries and high-quality agency bonds, as required by statute. Given recent volatility in U.S. Treasury yields and other xed-income markets, staff recommends maintaining a at projection for now, but will monitor the market condition and provide an update during the mid-year review. City of South San Francisco | FY2025-26 Budget Book Page 52 Revenue Source Taxes Property Tax $59,203,084 $52,618,746 $59,518,746 $59,298,746 12.7% Sales Tax $42,427,133 $42,428,258 $38,928,258 $39,084,680 -7.9% Transient Occupancy Tax $14,922,567 $14,500,000 $14,836,000 $15,286,000 5.4% Business License $3,175,739 $3,500,000 $4,500,000 $5,500,000 57.1% Commercial Parking Tax $3,502,031 $2,950,000 $2,950,000 $3,250,000 10.2% Other Taxes $199,016 $200,000 $200,000 $200,000 0% Total Taxes:$123,429,570 $116,197,004 $120,933,004 $122,619,426 5.5% Franchise Fees $5,441,536 $6,325,000 $6,325,000 $6,325,000 0% Total Franchise Fees:$5,441,536 $6,325,000 $6,325,000 $6,325,000 0% Licenses & Permits $13,979,027 $13,160,152 $13,620,152 $10,743,000 -18.4% Total Licenses & Permits:$13,979,027 $13,160,152 $13,620,152 $10,743,000 -18.4% Fines & Forfeitures $482,657 $876,000 $876,000 $876,500 0.1% Total Fines & Forfeitures:$482,657 $876,000 $876,000 $876,500 0.1% Revenue From Other Agencies $21,450,144 $7,126,394 $43,417,453 $6,942,704 -2.6% Total Revenue From Other Agencies:$21,450,144 $7,126,394 $43,417,453 $6,942,704 -2.6% Charges for Services $53,803,899 $43,032,679 $56,533,339 $50,744,654 17.9% Total Charges for Services:$53,803,899 $43,032,679 $56,533,339 $50,744,654 17.9% Interest & Rent $19,564,629 $5,107,000 $6,451,000 $5,977,000 17% Total Interest & Rent:$19,564,629 $5,107,000 $6,451,000 $5,977,000 17% Other Revenues $59,405,166 $33,115,729 $33,139,879 $40,506,649 22.3% Total Other Revenues:$59,405,166 $33,115,729 $33,139,879 $40,506,649 22.3% Total Revenue Source:$297,556,628 $224,939,958 $281,295,827 $244,734,933 8.8% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 53 FUND SUMMARIES City of South San Francisco | FY2025-26 Budget Book Page 54 Budgeted Expenditures Summary - All Funds Summary The City of South San Francisco is projecting $277.8 million of revenue, including Transfers In, in FY 2025-26, which represents a 6.4% increase over the prior year. Budgeted expenditures are projected to increase by 16% to $302.8 million in FY 2025-26. Expenditures by Fund General Fund (100) (50.4%)General Fund (100) (50.4%)General Fund (100) (50.4%) Sewer Enterprise Fund (710) (14.5%)Sewer Enterprise Fund (710) (14.5%)Sewer Enterprise Fund (710) (14.5%) Benefits Fund (783) (7.3%)Benefits Fund (783) (7.3%)Benefits Fund (783) (7.3%) Capital Improvements (5.1%)Capital Improvements (5.1%)Capital Improvements (5.1%) Measure W (101) (4.4%)Measure W (101) (4.4%)Measure W (101) (4.4%) Debt Service Fund (461) (4.4%)Debt Service Fund (461) (4.4%)Debt Service Fund (461) (4.4%) Self Insurance Fund (782) (2.4%)Self Insurance Fund (782) (2.4%)Self Insurance Fund (782) (2.4%) Park Construction Fee (1.7%)Park Construction Fee (1.7%)Park Construction Fee (1.7%) Information Technology (785) (1.6%)Information Technology (785) (1.6%)Information Technology (785) (1.6%) E. Of 101 Sewer Impact Fees Fund (1.1%)E. Of 101 Sewer Impact Fees Fund (1.1%)E. Of 101 Sewer Impact Fees Fund (1.1%) City Service Fund (781) (0.9%)City Service Fund (781) (0.9%)City Service Fund (781) (0.9%) Measure A-1/2 TransportationMeasure A-1/2 Transportation Sales Tax (0.8%)Sales Tax (0.8%) Measure A-1/2 Transportation Sales Tax (0.8%) General Fund (100)$140,132,398 $145,441,280 $161,279,144 $152,532,413 4.9% Measure W (101)$11,811,216 $16,368,350 $23,207,872 $13,415,968 -18% American Rescue Plan Act $4,988,611 $0 $0 $0 0% Affordable Housing Fund $129,657 $243,791 $266,091 $0 -100% Park In-Lieu Fee Fund Park In-Lieu Fee Zone 4 Fund (209)$1,562,752 $0 $486,997 $0 0% Total Park In-Lieu Fee Fund:$1,562,752 $0 $486,997 $0 0% Gas Tax Fund $1,719,093 $1,635,000 $2,343,922 $1,810,000 10.7% Measure A-1/2 Transportation Sales Tax $793,183 $2,180,847 $7,083,494 $2,310,847 6% Road Mntc & Rehab (Sb1)$469,146 $900,001 $5,403,558 $2,300,000 155.6% Smc Measure W 1/2 Cent Sales Tax $840,764 $1,899,999 $2,596,799 $500,000 -73.7% Community Development Block Grant $136,124 $556,019 $807,311 $0 -100% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 55 Common Greens Maintenance District Funds West Park Maint Dist 3 (231)$1,327,588 $896,243 $1,153,243 $1,097,708 22.5% Stonegate Ridge Maint (232)$283,600 $367,414 $385,504 $260,579 -29.1% Willow Gardens Maint (233)$101,290 $132,351 $182,351 $109,294 -17.4% West Park Maint Dist 1&2 (234)$767,891 $767,850 $973,850 $714,652 -6.9% Total Common Greens Maintenance District Funds:$2,480,369 $2,163,858 $2,694,948 $2,182,234 0.8% Oyster Point CFD Special Tax B $134,910 $200,000 $311,000 $311,000 55.5% City Housing Fund $234,327 $546,138 $573,707 $493,261 -9.7% Solid Waste Reduction $390,195 $596,118 $888,247 $391,373 -34.3% Supplemental Law Enforcement Services $188,029 $160,000 $160,000 $160,000 0% Developer Deposits $456,506 $1,076,300 $1,858,698 $1,112,994 3.4% City Programs Special Rev Fund $5,539,783 $321,000 $1,709,979 $328,000 2.2% Sewer Capacity Charges $3,652 $3,727 $3,727 $3,727 0% Park Land Acquisition Fee $313,453 $0 $2,998,966 $0 0% Park Construction Fee $645,532 $650,000 $1,196,463 $5,066,279 679.4% E. Of 101 Sewer Impact Fees Fund $7,979 $6,003,727 $1,944,400 $3,403,727 -43.3% E. Of 101 Traffic Impact Fees $2,944,200 $203,727 $11,470,855 $3,727 -98.2% Public Safety Impact Fee $415,771 $441,634 $545,890 $0 -100% Bicycle And Pedestrian Impact Fee Fund $0 $0 $156,915 $0 0% Commercial Linkage Impact Fee $8,031,560 $713,309 $1,654,267 $658,075 -7.7% Citywide Transportation Impact Fee $686,799 $2,250,000 $14,121,131 $1,200,000 -46.7% Cultural Arts Impact Fee Fund $200,000 $183,500 $183,500 $396,737 116.2% Child Care Impact Fees Fund $39,769 $3,727 $3,727 $3,727 0% Oyster Point Interchange Impact Fees Fun $884,000 $0 $0 $0 0% Capital Improvements Capital Improvements (510)$22,497,959 $8,029,104 $99,697,805 $13,516,279 68.3% Capital Infrastructure Reserve Fund (513)$1,935,859 -$561,613 $9,261,293 $1,900,000 -438.3% Capital Improvements – Oyster Point Development (514)$8,554,790 $0 $0 $0 0% Capital Improvements – New Police Station (515)$226,780 $140,000 $140,000 $0 -100% Capital Improvements Civic Campus Phase (516)$8,917,340 $0 $4,375,877 $0 0% Capital Improvements – Street Pavement Bond-funded (517)$1,780,047 $0 $0 $0 0% Capital Improvements – Solar Rooves Bond-funded (518)$2,025 $0 $0 $0 0% Capital Improvements – Civic Campus Bond-funded (519)$4,489,547 $960,000 $960,000 $0 -100% Capital Improvement - OMP Ballfield Bond-funded (522)$1,684,251 $0 $0 $0 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 56 Capital Improvements - Aquatics Center Bond-funded (524)$5,615,962 $260,886 $260,886 $0 -100% Total Capital Improvements:$55,704,559 $8,828,377 $114,695,862 $15,416,279 74.6% Debt Service Fund (461)$11,525,338 $13,231,738 $13,231,738 $13,236,538 0% Sewer Enterprise Fund (710)$33,783,520 $19,571,706 $67,085,574 $43,775,371 123.7% Parking District Fund (720)$1,246,723 $1,309,954 $1,521,371 $1,648,524 25.8% Storm Water Fund (740)$4,131,223 $2,435,222 $6,840,084 $1,472,587 -39.5% City Service Fund (781)$2,681,323 $2,618,687 $2,618,687 $2,652,337 1.3% Self Insurance Fund (782)$7,686,062 $7,135,000 $7,135,000 $7,135,000 0% Benefits Fund (783)$18,077,084 $15,410,332 $15,410,332 $22,105,000 43.4% Equipment Replacement (784)$1,612,208 $1,460,000 $6,092,220 $1,804,000 23.6% Information Technology (785)$4,148,359 $4,273,826 $4,590,215 $4,708,478 10.2% PEG Equipment & Access (786)$22,000 $25,000 $25,000 $325,000 1,200% Total:$326,798,179 $261,041,893 $485,197,690 $302,863,202 16% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Budgeted Expenditures by Type The charts and table below show that the majority of city-wide budgeted expenditures (52.4%) are salaries and benets, followed by supplies and services (25.3%). The remaining 22.2% is accounted for by all other categories - debt service, transfers, interdepartmental charges and capital purchases (e.g. new vehicles). Salaries And Benefits (52.5%)Salaries And Benefits (52.5%)Salaries And Benefits (52.5%) Supplies And Services (25.3%)Supplies And Services (25.3%)Supplies And Services (25.3%) Capital Outlay (6.5%)Capital Outlay (6.5%)Capital Outlay (6.5%) Debt Service (6.2%)Debt Service (6.2%)Debt Service (6.2%) Transfers (5.2%)Transfers (5.2%)Transfers (5.2%) Interdepartmental (4.3%)Interdepartmental (4.3%)Interdepartmental (4.3%) A key driver of rising expenditures in the FY 2025–26 Budget is the continued growth in personnel costs. The budget currently includes a 3% cost-of-living adjustment (COLA), which adds approximately $3.0 million to the City’s payroll base. However, this projection may change, as contracts for all bargaining units will expire on June 30, 2025, and are currently City of South San Francisco | FY2025-26 Budget Book Page 57 being negotiated. In this context, the City must balance scal sustainability with the need to retain and attract a high-quality workforce. Healthcare premiums continue to rise this year; however, the rate of increase has tapered off compared to last scal year's peak. Kaiser's premium, which rose 17% last year, shows no change this year, while Blue Shield's rates increased by 4%, and dental premium remain unchanged. The City is also experiencing a sharp rise in its required pension contributions. The total Unfunded Accrued Liability (UAL) payment to CalPERS in FY 2025–26 is projected at $23.6 million — a $3.7 million or 19% increase over FY 2024–25. These increases are primarily due to CalPERS’ adjustments in actuarial assumptions—such as lower expected investment returns and changes in retiree longevity—as well as past investment losses that are now being amortized over time. Additionally, COLAs for salaries in South San Francisco have exceeded CalPERS’ actuarial assumption of 2.8%[1] which further increases our UAL payment. Since pension liabilities are closely tied to employee compensation, this higher-than-expected wage growth has added upward pressure to the UAL. These impacts are compounded by CalPERS’ structured amortization schedules. CalPERS uses a layered amortization approach to manage gains and losses over time, typically spreading each year ’s changes over 20 years. These schedules are deliberately backloaded: payments begin at lower amounts and ramp up over the rst ve years. While this method provides participating agencies with less pension contribution volatility, it does result in paying more interest than straight-line amortization of investment losses. The City is experiencing the ramp up period, and payments are rising in FY 2025–26 not only due to new liabilities, but also due to the natural progression of earlier amortization layers reaching their peak. This structured, escalating curve is intended to smooth volatility over time but presents near-term budget pressures for the City. With respect to CalPERS’ investment portfolio performance in the current scal year, while it experienced signicant paper losses due to market volatility from federal government tariffs, through May 9, 2025, the market value of CalPERS investment portfolio is $533.6 billion, which is a 6.1% year to date return on investment (ROI). Of note, it is the deviation between the discount rate (currently 6.8%) and the ROI that determines whether CalPERS amortizes an investment gain or loss for a scal year. Other non-personnel operating costs are also rising. Mid-year adjustments to utility rates have been carried forward into the new budget, contributing to higher baseline expenses. In addition, ongoing ination continues to drive up the cost of supplies, materials, and contracted services, placing additional pressure on the City's operating budget. To help manage rising costs, the City Manager instructed departments to be highly selective in submitting new requests during the budget development process –especially those related to stafng. With limited exception, new position requests were discouraged in order to contain long-term cost growth and preserve budget exibility. This directive reects a strategic effort to align the City’s service levels with available resources, ensuring scal sustainability while minimizing the accumulation of ongoing obligations in a challenging revenue environment. [1] https://www.calpers.ca.gov/documents/jrs-actuarial-valuation-2024/download?inline Expense Objects Salaries And Benefits $143,281,535 $148,643,791 $149,546,065 $159,137,087 7.1% Supplies And Services $102,622,756 $47,020,989 $208,932,818 $76,481,464 62.7% Debt Service $13,530,339 $18,732,508 $18,732,508 $18,737,058 0% Capital Outlay $35,906,978 $15,303,387 $79,235,124 $19,555,279 27.8% Interdepartmental $12,418,905 $12,278,635 $12,278,635 $13,052,930 6.3% Transfers $19,037,665 $19,062,585 $16,472,540 $15,899,385 -16.6% Total Expense Objects:$326,798,179 $261,041,893 $485,197,690 $302,863,202 16% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 58 Fund Balance Summary - All Funds Below is a summary table of estimated FY2025-26 year-end unassigned fund balances for all funds based on the projected FY2024-25 year-end balances and proposed FY2025-26 revenue and expenditure budgets. Unassigned fund balance is the classication of fund balance that is available for spending and therefore includes all spendable amounts not classied as non- spendable, restricted, committed, or assigned. City of South San Francisco | FY2025-26 Budget Book Page 59 Citywide Full Time Equivalent Summary Changes by Department: Human Resources + 0.17 FTE - Annual request for summer intern program. Economic and Community Development - 1.0 FTE - Elimination of Promotores position. Police - 3.0 FTE - Parking Enforcement Positions eliminated due to transition to contract services. + 1.0 FTE - Addition of Crisis Intervention Specialist. Parks and Recreation - 8.90 FTE - Reduction in Grant funded positions. Position to be taken to Council in separate budget action. + 8.79 FTE - Addition of Aquatics positions to support half-year operations of new aquatic center. City of South San Francisco | FY2025-26 Budget Book Page 60 Governmental - Major Funds Governmental Funds are designated for revenues and expenditures that are classied as government-type activities. These activities, which are nanced primarily through taxes, provide infrastructure improvements including housing rehabilitation, trafc improvements, land improvements, park facilities and public facility improvements.  Governmental Funds have been divided into Major and non-Major classications. The Governmental Major funds consist of the General Fund, Measure W Fund, City Housing Fund, Developer Deposits Fund, Capital Infrastructure Fund, and Capital Improvement Funds. City of South San Francisco | FY2025-26 Budget Book Page 61 General Fund (100) The General Fund is the main fund of the City’s operating budget. The fund accounts for revenues such as property tax, sales tax, transient occupancy tax, licenses and permits, charges for services, grants, rents, interest income and donations, and public services delivered by departments such as Police, Fire, Library, Parks & Recreation, Economic & Community Development, and City Administration, outside of those accounted for in other specic funds. Summary For the FY 2025-26 budget, expenditures are projected to exceed revenues by approximately $12.0 million. However, South San Francisco remains nancially strong, with a large industrial base anchored by the world’s largest biotechnology research center, and with a AAA-rated credit rating afrmed just recently by Standard and Poor’s rating agency.  The FY 2025–26 General Plan Budget represents a prudent spending plan that sustains the City’s high-quality of life through the maintenance of existing service levels and prepares for the operational impacts of new facilities scheduled to come online during the year. Despite ongoing challenges from rising service and infrastructure costs, South San Francisco remains in a sound nancial position. This budget carefully balances the need to address critical operational demands while maintaining investment in long-term priorities, including capital assets, eet replacements, and information technology.  Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $50M $100M $150M $200M City of South San Francisco | FY2025-26 Budget Book Page 62 Budgeted Revenues by Source The City’s General Fund receives its revenue from taxes, licenses and permit fees, charges for services, grants, and other sources, as shown by the pie chart below. The City of South San Francisco is projecting $140.5 million of revenue in FY2025- 26, which represents a 2.2% increase ($3.1 million) from the prior year's adopted budget. The main categories of adjustment are: .  $6.7 million increase in projected Property Tax revenue which is inline with the FY 2024-25 mid-year update. . $2.0 million decrease in projected Sales Tax revenue, again in line with the FY 2024-25 mid-year update. . $0.8 million increase in projected Transient Occupancy Tax (TOT) . $2.0 million increase in projected Business License Tax revenue from budgeted FY 2024-25. This is due to the tax measure adjustment approved by residents in November of 2024. .  $3.3 million decrease in permit revenue from the Building division. This is based on both an expected reduction in activity and an adjustment due to the update to the Master Fee schedule approved in FY 2023-24. . $0.9 million increase in permit revenue from all other divisions.  . $0.6 million increase in use of Money and Property, from increases in expected rent revenue. . $3.0 million decrease with the removal of transfers from Fund 101, Measure W sales tax measure. As a result of these adjustments, in the FY2025-26 budget, taxes account for 72.8% of total revenues, which include property taxes, sales taxes, TOT, parking tax, and business license tax.  The charts and table below provide visual representations of FY2025-26 General Fund sources of revenue. Taxes (72.8%)Taxes (72.8%)Taxes (72.8%) Licenses & Permits (7.6%)Licenses & Permits (7.6%)Licenses & Permits (7.6%) Charges for Services (7.5%)Charges for Services (7.5%)Charges for Services (7.5%) Franchise Fees (4.4%)Franchise Fees (4.4%)Franchise Fees (4.4%) Interest & Rent (3.6%)Interest & Rent (3.6%)Interest & Rent (3.6%) Revenue From Other Agencies (2.1%)Revenue From Other Agencies (2.1%)Revenue From Other Agencies (2.1%) Transfers (1.1%)Transfers (1.1%)Transfers (1.1%) Fines & Forfeitures (0.6%)Fines & Forfeitures (0.6%)Fines & Forfeitures (0.6%) Other Revenues (0.2%)Other Revenues (0.2%)Other Revenues (0.2%) City of South San Francisco | FY2025-26 Budget Book Page 63 Budgeted Revenues vs Historical by Source MillionsOther Revenues Fines & Forfeitures Transfers Revenue From Other Agencies Interest & Rent Franchise Fees Charges for Services Licenses & Permits Taxes FY2024FY2025FY2026$0 $25 $50 $75 $100 $125 $150 $175 Revenue Source Taxes Property Tax $56,772,516 $50,400,000 $57,300,000 $57,080,000 13.3% Sales Tax $23,228,075 $23,213,000 $21,213,000 $21,213,000 -8.6% Transient Occupancy Tax $14,922,567 $14,500,000 $14,836,000 $15,286,000 5.4% Business License $3,175,739 $3,500,000 $4,500,000 $5,500,000 57.1% Commercial Parking Tax $3,502,031 $2,950,000 $2,950,000 $3,250,000 10.2% Total Taxes:$101,600,928 $94,563,000 $100,799,000 $102,329,000 8.2% Franchise Fees $5,329,885 $6,200,000 $6,200,000 $6,200,000 0% Total Franchise Fees:$5,329,885 $6,200,000 $6,200,000 $6,200,000 0% Licenses & Permits $13,979,027 $13,160,152 $13,620,152 $10,743,000 -18.4% Total Licenses & Permits:$13,979,027 $13,160,152 $13,620,152 $10,743,000 -18.4% Fines & Forfeitures $480,957 $873,000 $873,000 $873,500 0.1% Total Fines & Forfeitures:$480,957 $873,000 $873,000 $873,500 0.1% Revenue From Other Agencies $6,261,395 $2,664,025 $4,772,002 $2,949,884 10.7% Total Revenue From Other Agencies:$6,261,395 $2,664,025 $4,772,002 $2,949,884 10.7% Charges for Services $12,975,439 $10,562,000 $10,759,275 $10,561,619 0% Total Charges for Services:$12,975,439 $10,562,000 $10,759,275 $10,561,619 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 64 Interest & Rent $7,054,421 $4,455,000 $5,659,000 $5,055,000 13.5% Total Interest & Rent:$7,054,421 $4,455,000 $5,659,000 $5,055,000 13.5% Other Revenues $293,118 $282,500 $306,650 $282,895 0.1% Total Other Revenues:$293,118 $282,500 $306,650 $282,895 0.1% Transfers $6,342,328 $4,660,847 $2,321,649 $1,492,847 -68% Total Transfers:$6,342,328 $4,660,847 $2,321,649 $1,492,847 -68% Total Revenue Source:$154,317,497 $137,420,524 $145,310,728 $140,487,744 2.2% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 65 Budgeted Expenditures by Department The City budgets its General Fund expenditures by operating department. Public safety activities (Police and Fire) account for 54.1% of all General Fund expenditures. Parks and Recreation accounts for 19.1% of budgeted expenditures, Public Works 8.2%, Economic and Community Development at 6.3%, and Library at 6.1%. Administrative departments, which include Finance, Human Resources, the Ofce of  the City Manager and Non-departmental account for 8.9% of expenditures. The Information Technology department is budgeted and administered in its own fund (see IT fund summary - fund 785), separate from the General Fund and is therefore not included in this summary. The FY 2025-26 General Fund expenditure budget is $152.5 million which represents an increase of $7.1 million, or 4.9%, compared to the prior year's adopted budget. The FY 2025-26 General Fund expenditure budget totals $152.5 million, reecting a $7.1 million increase (or 4.9%) over the prior year’s adopted budget. This growth is primarily driven by the General Fund’s share of 3% Cost-of-Living Adjustments (COLA) for salaries, a $3.7 million increase in pension costs, and the removal of prior-year cost-reduction measures. However, to reect recent trends of higher-than-normal staff turnover, the budget incorporates a 7% vacancy rate, translating to approximately $8 million in anticipated salary savings. The charts and table below provide visual representations of FY 2025-26 General Fund department allocation of expenditures. Police (27.7%)Police (27.7%)Police (27.7%) Fire (26.4%)Fire (26.4%)Fire (26.4%)Parks & Recreation (19.1%)Parks & Recreation (19.1%)Parks & Recreation (19.1%) Public Works (8.2%)Public Works (8.2%)Public Works (8.2%) Economic & Community Development (6.3%)Economic & Community Development (6.3%)Economic & Community Development (6.3%) Library (6.1%)Library (6.1%)Library (6.1%) City Manager (3.2%)City Manager (3.2%)City Manager (3.2%) Finance (2.8%)Finance (2.8%)Finance (2.8%) Human Resources (2%)Human Resources (2%)Human Resources (2%) City Attorney (1%)City Attorney (1%)City Attorney (1%) City of South San Francisco | FY2025-26 Budget Book Page 66 Budgeted Expenditures by Department vs Historical MillionsNon Expense Capital Improvement Plan City Treasurer City Council Transfers City Clerk Non-Departmental City Attorney Human Resources Finance City Manager Library Economic & Community Development Public Works Parks & Recreation Fire Police FY2024FY2025FY2026$0 $50 $100 $150 $-50 $200 Expenditures City Council $301,415 $298,359 $298,359 $255,018 -14.5% City Clerk $972,730 $1,281,831 $1,360,831 $1,366,494 6.6% City Treasurer $170,819 $174,298 $174,298 $220,835 26.7% City Attorney $1,719,156 $1,458,825 $2,258,825 $1,517,711 4% City Manager $3,404,533 $3,900,999 $4,296,883 $4,849,323 24.3% Finance $3,204,236 $3,897,257 $4,227,155 $4,329,481 11.1% Human Resources $2,609,552 $2,708,481 $2,996,752 $3,039,100 12.2% Non-Departmental $856,668 $1,394,367 $1,685,629 $1,394,367 0% Economic & Community Development $11,123,659 $8,889,240 $11,967,703 $9,607,144 8.1% Fire $36,717,256 $36,420,902 $38,032,605 $40,214,421 10.4% Police $37,082,803 $38,204,497 $38,343,810 $42,318,884 10.8% Public Works $10,126,859 $11,103,629 $14,414,465 $12,553,525 13.1% Library $7,697,655 $8,860,056 $9,113,582 $9,277,479 4.7% Parks & Recreation $22,855,889 $26,348,540 $29,493,651 $29,088,632 10.4% Capital Improvement Plan $735,536 $0 $2,114,596 $0 0% Transfers $500,000 $500,000 $500,000 $500,000 0% Non Expense $53,632 $0 $0 -$8,000,000 N/A Total Expenditures:$140,132,398 $145,441,280 $161,279,144 $152,532,413 4.9% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 67 Budgeted Expenditures by Type As shown in the pie chart below, salaries and benets account for over three-quarters of the total General Fund budgeted expenditures (76.6%). Supplies and services make up 16.4%, while interdepartmental charges constitute 6.7%. These charges include expenses for vehicle and equipment replacement, vehicle maintenance, IT services, and insurance. Transfers represent less than 1% of General Fund expenditures and are used to support the operations of other funds, such as the Stormwater Fund. Salaries And Benefits (76.6%)Salaries And Benefits (76.6%)Salaries And Benefits (76.6%) Supplies And Services (16.4%)Supplies And Services (16.4%)Supplies And Services (16.4%) Interdepartmental (6.7%)Interdepartmental (6.7%)Interdepartmental (6.7%) Transfers (0.3%)Transfers (0.3%)Transfers (0.3%) Expense Objects Salaries And Benefits $106,245,304 $113,380,617 $114,235,892 $116,858,714 3.1% Supplies And Services $22,973,449 $22,055,928 $34,263,358 $25,002,498 13.4% Capital Outlay $908,909 $0 $2,775,160 $0 0% Interdepartmental $9,504,735 $9,504,734 $9,504,734 $10,171,201 7% Transfers $500,000 $500,000 $500,000 $500,000 0% Total Expense Objects:$140,132,398 $145,441,280 $161,279,144 $152,532,413 4.9% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 68 Fund Balance The chart and table below show a $12 million, or 42%, reduction in the available, or 'unassigned,' fund balance projected for FY 2025-26. Projections Committed Restricted Nonspendable Unassigned Assigned FY2024 FY2025 FY2026 $0 $20M $40M $60M $80M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $34,800,000 $29,007,734 $16,963,065 -41.5% Assigned $27,800,000 $27,800,000 $27,800,000 0% Committed $0 $0 $0 0% Restricted $0 $0 $0 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$62,600,000 $56,807,734 $44,763,065 -21.2% City of South San Francisco | FY2025-26 Budget Book Page 69 Measure W (101) This fund is used to account for revenues and expenditures associated with the Measure W local half-cent sales tax ballot measure passed by South San Francisco voters on November 3, 2015. South San Francisco residents approved a half-cent sales tax for 30 years by an overwhelming majority. The sales tax went into effect April 1, 2016. The adoption of Measure W ensures that the City of South San Francisco will be able to maintain and enhance locally controlled City services that the community cares about and has come to expect – including maintaining neighborhood police patrols/9-1-1 response, programs for seniors/disabled residents, crime/gang suppression programs, repairing potholes/streets, maintaining youth/teen educational/recreational programs, providing a police operations center that meets earthquake safety codes, and other city services. Summary In FY 2025-26, the Measure W Fund is projected to receive $14.65 million, which is $1.35 million lower than the prior scal year. This represents a change of 8.5%. Expenditures are projected to total $13.42 million, which is lower than the prior scal year. This represents a change of -$2.95 million, or -18.0% due to the elimination of transfer to the General Fund. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $5M $10M $15M $20M Budgeted Revenues by Source The FY 2025–26 budget includes $14.65 million in anticipated revenues from Measure W. During the FY 2024–25 mid-year review, projected revenues were revised downward by $1.5 million, resulting in an updated estimate of $14.5 million. When compared to the FY 2024-25 adjusted budget, staff are projecting a relatively at revenue for FY 2025-26, reecting a conservative approach in light of current economic conditions and historical trends. City of South San Francisco | FY2025-26 Budget Book Page 70 Budgeted Revenue by Source vs Historical MillionsTaxes FY2024FY2025FY2026$0 $2.5 $5 $7.5 $10 $12.5 $15 $17.5 Revenue Source Taxes $15,773,938 $16,000,000 $14,500,000 $14,645,200 -8.5% Total Revenue Source:$15,773,938 $16,000,000 $14,500,000 $14,645,200 -8.5% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 71 Budgeted Expenditures by Type Measure W funds are unrestricted and may be used for a wide range of municipal needs. Since the measure's passage, these funds have directly supported major capital improvement projects, including the completed Council Chamber, Library, and Police Station at the Library | Parks and Recreation Center (L|PR). In addition, Measure W is helping to fund the Aquatic Center at Orange Memorial Park, which is anticipated to open in FY 2025-26. Bond Issuance: 2020A - $43.9 million in bonds in February 2020 to nance costs for the Library | Parks and Recreation Center (L|PR) (Fund 519) and the new police station (Fund 515).  2021A - $86.4 million in May 2021 for continued funding for the L|PR as well as to fund an expanded street rehabilitation program (Fund 517) and the installation of solar roofs at the LPR and City corporation yard (Fund 518).  2022A - $65.4 million in May 2022 to fund a new Aquatic Center (Fund 524), playground (Fund 523), and Balleld (Fund 522) at Orange Memorial Park, and two replacement bridges over Colma Creek (Fund 525). Bond Repayment and Transfers Revenues generated from the Measure W sales tax serve as the primary source for repaying bond obligations. In FY 2025-26, bond repayments are budgeted at $13.2 million. These are shown as "Transfers" to the Debt Service Fund (Fund 461), from which the actual bond payments are made. By comparison, FY 2024-25 budgeted $13.0 million in bond repayments. The increase in FY 2025-26 is due to the expiration of capitalized interest associated with the 2022A Bonds. As those capitalized interest payments have now concluded, the City must begin using its own revenue to make the required payments. Elimination of General Fund Transfer The reduction in total transfers from FY 2024-25 to FY 2025-26 is primarily due to the elimination of a $3 million transfer to the General Fund. This transfer was originally included to help backll the structural decit. However, as part of the FY 2024- 25 mid-year budget review, the transfer was removed and that change has been carried forward into the FY 2025-26 budget. The decision reects a growing preference to preserve their use for voter-approved capital investments and debt repayment. This approach supports long-term nancial transparency and aligns with best practices in the stewardship of dedicated revenue sources. Salaries and Benets The remaining Salaries and Benets expenditures reect staff time dedicated to the management and oversight of bond- funded projects. Transfers (98.7%)Transfers (98.7%)Transfers (98.7%) Salaries And Benefits (1.3%)Salaries And Benefits (1.3%)Salaries And Benefits (1.3%) City of South San Francisco | FY2025-26 Budget Book Page 72 Budgeted Expenditures by Type vs Historical MillionsCapital Outlay Salaries And Benefits Transfers FY2024FY2025FY2026$0 $2.5 $5 $7.5 $10 $12.5 $15 $17.5 Expense Objects Salaries And Benefits $166,630 $397,499 $397,499 $179,430 -54.9% Capital Outlay $3,357,837 $0 $9,839,521 $0 0% Transfers $8,286,750 $15,970,851 $12,970,851 $13,236,538 -17.1% Total Expense Objects:$11,811,216 $16,368,350 $23,207,872 $13,415,968 -18% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 73 Fund Balance Revenues budgeted for Measure W are anticipated to be slightly higher than expenses, with no use of reserves required. As a result, the fund balance is projected to increase slightly in FY2025-26. Projections Assigned Committed Restricted Nonspendable Unassigned FY2024 FY2025 FY2026 $0 $2.5M $5M $7.5M $10M $12.5M $15M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $10,801,037 $13,011,216 $14,240,448 9.4% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $0 $0 $0 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$10,801,037 $13,011,216 $14,240,448 9.4% Changes and Highlights Transfer: $13,236,538 - Debt Service for 2020A, 2021A, 2022A lease revenue bonds. City of South San Francisco | FY2025-26 Budget Book Page 74 City Housing Fund (241) Up until Redevelopment Agencies were abolished in FY 2011-12 by the State of California under ABx1 26, the City set aside 20% of Redevelopment property taxes to fund the provision of new affordable housing units, as well as the operation and maintenance of housing stock that the Redevelopment Agency had already funded. That fund was formerly called the Low/Moderate Income Housing Fund. With its source of funding eliminated, the City Council voted to take on the operations of the former housing units by becoming the Successor Housing Agency to the Low/Moderate Income Housing Fund. The City Housing Fund is funded primarily by rental revenues received by the City for those occupied housing units. Any shortfall between the rents received and the operating and maintenance costs of those housing units is funded by either one-time grants or the General Fund. Summary In FY 2025-26, the City Housing Fund is projected to receive $0.18 million, which is unchanged compared to the prior scal year. Expenditures are projected to total $0.49 million, which is lower than the prior scal year. This represents a change of -$0.05 million, or -9.7%. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $200K $400K $600K City of South San Francisco | FY2025-26 Budget Book Page 75 Budgeted Revenue by Source The pie chart below shows that 91.8% of revenue in FY 2025-26 is budgeted to come from interest income on City-advanced loans and rental payments, while 8.2% is expected from the fund's allocated share of interest earnings on the City's investments. Interest & Rent (91.8%)Interest & Rent (91.8%)Interest & Rent (91.8%) Other Revenues (8.2%)Other Revenues (8.2%)Other Revenues (8.2%) Budgeted Revenue by Source vs Historical MillionsOther Revenues Interest & Rent FY2024FY2025FY2026$0 $0.05 $0.1 $0.15 $0.2 $0.25 $0.3 $0.35 Revenue Source Interest & Rent $301,534 $167,000 $167,000 $167,000 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 76 Other Revenues $0 $15,000 $15,000 $15,000 0% Total Revenue Source:$301,534 $182,000 $182,000 $182,000 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 77 Budgeted Expenditures by Type In FY 2025-26, 59.4% of the expenditure budget will be spent on the salaries and benets for City employees working on the programs related to the City Housing Fund. 39.1% of the budget will be on supplies and services expenditures to support that work, with just 1.5% on general City administrative overhead. Salaries And Benefits (59.4%)Salaries And Benefits (59.4%)Salaries And Benefits (59.4%) Supplies And Services (39.1%)Supplies And Services (39.1%)Supplies And Services (39.1%) Interdepartmental (1.5%)Interdepartmental (1.5%)Interdepartmental (1.5%) In FY 2024-25 there was an increase in salary and benet expenses due to personnel cost ination and additional staff to manage this program. This included part of the ECD Director and an Admin Assistant I personnel costs. For FY 2025-26, there is a decrease in $52,877 compared to last year's adopted budget due to transitioning positions into the General Fund. City of South San Francisco | FY2025-26 Budget Book Page 78 Budgeted Expenditures by Type vs Historical MillionsInterdepartmental Supplies And Services Salaries And Benefits FY2024FY2025FY2026$0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 Expense Objects Salaries And Benefits $9,390 $345,758 $345,758 $292,881 -15.3% Supplies And Services $217,632 $192,925 $220,494 $192,925 0% Interdepartmental $7,305 $7,455 $7,455 $7,455 0% Total Expense Objects:$234,327 $546,138 $573,707 $493,261 -9.7% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 79 Fund Balance The Fund Balance of the City Housing Fund shows continued decline as expenditures outpace revenues. Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $500K $1M $1.5M $2M $2.5M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $2,191,576 $1,234,605 $923,344 -25.2% Nonspendable $0 $0 $0 0% Total Fund Balance:$2,191,576 $1,234,605 $923,344 -25.2% Changes and Highlights FY 2025-26 Personnel: Slight adjustment to staff allocation, resulting in a reduction in payroll. FY 2024-25 Personnel: Signicant increase in stafng levels, reecting expanded program needs. City of South San Francisco | FY2025-26 Budget Book Page 80 Developer Deposits / Contributions, Permit Program Maint Fee, General Plan Maint Fee (270/271/272) This fund accounts for deposits paid by developers for review of planning applications and contributions made by developers related to development agreements signed with the City. Historically, principal reserves include the General Plan Maintenance Reserve and the Permit Program Maintenance Reserve. Summary In Fiscal Year 2025-26, combined revenues from Developer Deposits and Contributions—including the General Plan Maintenance Fee and the Permit Program Maintenance Fee—are projected to total $2.5 million, marking an increase of $0.9 million over the previous scal year. Expenditures are anticipated to reach $1.1 million, a modest rise over the prior year. This results in a net change of $0.36 million, or 3.4%. While these fees are currently reported under Developer Deposits in Fund 270, through the budget to segregate the revenues and expenditures: Permit Program Maintenance Fee transactions will be allocated to Fund 271. General Plan Maintenance Fee transactions will be allocated to Fund 272. This segregation aims to enhance nancial transparency and improve transaction efciency. Permit Program Maintenance Fee (Fund 271) The Permit Program Maintenance Fee supports the development, enhancement, and maintenance of the City's permit processing systems, including software platforms that facilitate efcient service delivery. This fee is assessed on applicable permits to ensure that the permitting infrastructure remains current, secure, and user-friendly. Funds collected are deposited into Fund 271, which is earmarked for technology and programmatic improvements related to permit services. General Plan Maintenance Fee (Fund 272) The General Plan Maintenance Fee is a charge imposed on development projects to fund the ongoing maintenance and periodic updates of the City's General Plan. This fee ensures that the City can adapt to evolving community needs, comply with state mandates, and implement long-term planning goals. The fee is calculated as a percentage of the project's construction valuation and is collected at the time of building permit issuance. Revenues from this fee are allocated to Fund 272, dedicated exclusively to General Plan-related activities. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $500K $1M $1.5M $2M $2.5M $3M City of South San Francisco | FY2025-26 Budget Book Page 81 City of South San Francisco | FY2025-26 Budget Book Page 82 Revenues by Source Historically, revenues from the Permit Program Maintenance Fee and General Plan Maintenance Fee have been budgeted under both Other Revenues and Charges for Services. Beginning in FY 2025-26, these revenues will be consistently classied as Charges for Services to more accurately reect their purpose. Budgeted and Historical 2026 Revenues by Source MillionsInterest & Rent Other Revenues Charges for Services FY2024FY2025FY2026$0 $0.5 $1 $1.5 $2 $2.5 $3 City of South San Francisco | FY2025-26 Budget Book Page 83 Budgeted Expenditures by Type For FY 2025-26 the bar chart below shows the increase in Salaries and Benets being covered by this Fund. This is due to stafng cost increases needed to manage developer projects in FY 2025-26. With the new funds, transactions will occur directly in the associated funds and will no longer be transfers. Budgeted and Historical Expenditures by Type MillionsCapital Outlay Transfers Supplies And Services Salaries And Benefits FY2024FY2025FY2026$0 $1 $0.25 $0.5 $0.75 $1.25 Expense Objects Salaries And Benefits $302,050 $571,300 $571,300 $613,894 7.5% Supplies And Services $147,059 $205,000 $535,392 $499,100 143.5% Capital Outlay $7,397 $0 $144,006 $0 0% Transfers $0 $300,000 $608,000 $0 -100% Total Expense Objects:$456,506 $1,076,300 $1,858,698 $1,112,994 3.4% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 84 Fund Balance Name FY 2025 FY 2026 % Change 270 - Developer Funded Planning and Engineering 1,861,858 1,042,964 -44% 271 - Permit Program Maintenance Fee 409,191 115,091 -72% 272 - General Plan Maintenance Fee 3,791,073 6,291,073 66% Changes and Highlights None City of South San Francisco | FY2025-26 Budget Book Page 85 Capital Improvements (510) The Capital Improvement Program (CIP) Fund (Fund 510) is the main CIP fund where the majority of CIP project expenditures are recorded. CIP projects are appropriated on a multi-year basis; therefore, any unspent budget in one year can be carried forward into the next. This fund does not include capital projects that are bond- funded - these projects have their own individual funds. The new budget reects new appropriations only, with no carryforward appropriations from the prior year. The nal actual amount of carryforward appropriations will be determined during the year-end closing process and will be reected in the new year's adjusted budget. Summary In FY 2025-26, the Capital Improvements Program (CIP) Fund is projected to receive $13.52 million, which is $5.49 million higher than the prior scal year. This represents a change of 68.3%. Expenditures are projected to total $13.52 million, an increase of $5.49 million, or 68.3%, over the prior scal year.  Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $5M $10M $15M $20M $25M City of South San Francisco | FY2025-26 Budget Book Page 86 Budgeted Revenues by Source All of the $13.5 million of revenue for this fund is transfers from other funds such as Impact Fee funds, Infrastructure Reserves, Measure A, and Measure W.  There is no grant funding budgeted to be received from other agencies at this time for capital projects. Budgeted Revenues by Source vs Historical MillionsRevenue From Other Agencies Transfers FY2024FY2025FY2026$0 $5 $10 $15 $20 In reference to the table below, the FY 2025-26 budgeted revenues show an increase compared to the FY 2024-25 adopted budget, and a large difference to the FY 2024-25 amended budget which includes carryover budgets for CIP projects from previous years and additional budget amendments made during the scal year. Much of what is not spent during the year due to the multi-year nature of CIP projects will be rolled forward into FY 2025-26 amended budget and beyond as the projects progress.  Revenue Source Revenue From Other Agencies $3,750,017 $0 $32,683,083 $0 0% Charges for Services $0 $0 $4,898,819 $0 0% Transfers $14,006,280 $7,683,387 $62,474,810 $13,516,279 75.9% Total Revenue Source:$17,756,297 $7,683,387 $100,056,712 $13,516,279 75.9% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 87 Budgeted Expenditures by Type Budgeted expenditures for this fund generally match the funding when the budget is adopted to maintain a balanced fund. Expenditures budgeted for FY 2025-26 are $13.5 million. In addition, during the closing process of the previous scal year, prior year appropriations for individual capital projects are rolled over to the new scal year and can be spent when needed.  Additional budget amendments can also occur during the year allowing additional expenditures from this fund (matched by funding from sources outside the CIP fund). The size of the CIP budget varies from year to year depending on the project pipeline, progression of existing approved projects, and changes in the infrastructure needs of the City. Budgeted Expenditures by Type vs. Historical MillionsCapital Outlay Supplies And Services FY2024FY2025FY2026$0 $5 $10 $15 $20 $25 Expense Objects Supplies And Services $22,207,113 $8,029,104 $98,238,346 $13,516,279 68.3% Capital Outlay $290,846 $0 $1,459,460 $0 0% Total Expense Objects:$22,497,959 $8,029,104 $99,697,805 $13,516,279 68.3% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 88 Fund Balance Because revenues in CIP Fund 510 are programmed to match expenditures on a project-by-project basis, the fund does not carry a year-end balance. This approach ensures that all incoming resources are allocated directly to capital improvement projects, with no surplus or reserve accumulated within the fund. Projections Unassigned Assigned Committed Restricted Nonspendable FY2024 FY2025 FY2026 $0 $5M $10M $15M $20M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $16,962,157 $0 $0 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$16,962,157 $0 $0 0% City of South San Francisco | FY2025-26 Budget Book Page 89 Changes and Highlights FY 2025-26 Capital Projects: Amount Project Name Project# $ 300,000 Colma/SSF ERC Bicycle and Pedestrian Improvement tr2415 350,000 Smart Corridor tr2002 100,000 Trafc Studies and Grant Support tr2406 250,000 Miscellaneous Trafc Improvements tr2301 200,000 Junipero Serra Blvd / Westborough Blvd Cooridor Feasibility Project  st2301 300,000 Citywide Miscellaneous Striping st2602 100,000 Tranforan Ave Reconstruction st2601 180,000 Playground Surfacing: City Hall Tot Lot, Avalon Park, Westborough Park pk2602 20,000 Orange Memorial Park Stormwater Capture Project sd1801 1,500,000 Underground Utilities District Rule 20A for Mission Road st1904 200,000 Bridge Preventive Maintenance Program st1703 1,000,000 2026 Pavement Repair and Crack Seal st2605 200,000 2027 Surface Seal st2604 150,000 Citwide Trip Hazard st2603 3,300,000 2026 Surface Seal Project st2505 300,000 Linden Park Project pk2305 3,000,000 Cypress and Pine Park Renovation Project pk2601 1,666,279 Centennial Trail Improvements pk2302 400,000 Dedicated Pickleball Courts pk2501 $ 13,516,279 Total   City of South San Francisco | FY2025-26 Budget Book Page 90 Capital Infrastructure Reserve Fund (513) The City employed a number of strategies to mitigate the nancial impact of the Great Recession; one of which was to defer building and facility maintenance. A recent analysis indicated that city-wide infrastructure liabilities were created as a result of the recession mitigation strategy. The Capital Infrastructure Reserve was created at the end of Fiscal Year 2013-14 to address these city-wide infrastructure maintenance liabilities. The reserve is funded by surplus General Fund revenue that is allocated by City Council. Summary In FY 2025-26, the Capital Infrastructure Reserve Fund is projected to receive $0, which is unchanged compared to the prior scal year. Expenditures are projected to total $1.90 million. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $-1000000 $-500000 $0 $500K $1M $1.5M $2M $2.5M City of South San Francisco | FY2025-26 Budget Book Page 91 Budgeted Expenditures by Type The Capital Infrastructure Reserve Fund holds a Fund Balance that allows City Council to provide funding for strategic capital projects as part of the budget as well as on an as-needed basis during the year by Budget Amendment.  The chart and table below shows that FY 2025-26 budgeted expenditures, as in prior years, are transfers out to other funds for the purpose of Capital Outlay.  Transfers out are shown as Capital Outlay, for projects, primarly in Fund 510. New project budgets from Fund 513 are shown below in the changes and highlights section. Budgeted Expenditures vs Historical MillionsSupplies And Services Capital Outlay FY2024FY2025FY2026$-1 $-0.5 $0 $0.5 $1 $1.5 $2 $2.5 Expense Objects Supplies And Services $5,181 $0 $1,612,169 $0 0% Capital Outlay $1,930,678 -$561,613 $7,649,125 $1,900,000 -438.3% Total Expense Objects:$1,935,859 -$561,613 $9,261,293 $1,900,000 -438.3% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 92 Fund Balance The chart below illustrates the declining fund balance of the Capital Infrastructure Reserve Fund in recent years, reecting the use of funds to support various capital improvement projects across the City. The projected increase in fund balance for FY 2024-25 is primarily due to the de-appropriation of select projects during the FY 2024-25 budget adoption process and further de-appropriation as part of the year-end review. These actions temporarily restore available reserves while allowing for the reassessment and reprioritization of capital funding needs. Projections Assigned Committed Restricted Nonspendable Unassigned FY2024 FY2025 FY2026 $0 $2M $4M $6M $8M $10M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $4,377,511 $8,879,508 $6,979,508 -21.4% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $0 $0 $0 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$4,377,511 $8,879,508 $6,979,508 -21.4% Changes and Highlights Capital: $   180,000 - pk2602 - Playground Surfacing:  City Hall Tot Lot, Avalon Park, Westborough Park      20,000 - sd1801 - Orange Memorial Park Stomrwater Capture Project 1,500,000 - st1904 - Underground Utilties District Rule 20A for Mission Road    200,000 - st1703 - Bridge Preventative Maintenance Program $1,900,000 City of South San Francisco | FY2025-26 Budget Book Page 93 Capital Improvements - Civic Campus Phase I - Measure W- funded (516) This fund was created to account for expenditures related to the Civic Campus Phase I project that were nanced solely by Measure W revenues. Expenditures funded by bond nancing are accounted for in a separate fund.  Summary The Civic Campus Project, also known as the Library | Parks and Recreation Center (L|PR) opened in October 2023 and the project is substantially completed and all necessary appropriations have been made. As a result, the FY 2025-26 revenue and expenditure budgets are zero.  Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $2.5M $5M $7.5M $10M $12.5M City of South San Francisco | FY2025-26 Budget Book Page 94 Fund Balance Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $2M $4M $6M $8M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $7,224,672 $718,610 $718,610 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$7,224,672 $718,610 $718,610 0% City of South San Francisco | FY2025-26 Budget Book Page 95 Capital Improvements - Bond-funded (515/517/518/ 519/522/523/ 524/525) These funds were created to account for the funding of specic capital projects through the issuance of municipal bonds, as follows: 515 - Capital Improvements - Police Station 517 - Capital Improvements - City Street Paving Program 518 - Capital Improvements - Solar Rooves Installation (City Corp Yard & LPR) 519 - Capital Improvements - Civic Center Campus - Phase II 522 - Capital Improvements - Orange Memorial Park Balleld 523 - Capital Improvements - Orange Memorial Park Playground Replacement 524 - Capital Improvements - New Aquatics Center 525 - Capital Improvements - Colma Creek Bridge Replacement Summary The FY 2025-26 budget includes no revenue or expenditures for this fund since all bond proceeds were received and expended in the prior years. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $5M $10M $15M City of South San Francisco | FY2025-26 Budget Book Page 96 Budgeted Revenue by Fund For FY 2025-26, there will be no revenue received by the bond-funded Capital Improvement funds since the proceeds from the bond issuances were received and recognized as revenue in prior years. Those proceeds are held in the funds and drawn down upon as expenditures are incurred. The proceeds will be used in the funds for their respective projects. Bond Issuance: 2020A - $43.9 million in bonds in FY2019-20 to help fund Library | Parks and Rec Center (L|PR) (fund 519) and the new police station (fund 515). 2021A - $86.4 million in FY2020-21 continued funding for the LPR as well as to fund an expanded street rehabilitation program (fund 517) and the installation of solar roofs at the LPR and City corporation yard (fund 518). 2022A - $65.4 million in FY2021-22 to fund a new Aquatic Center (fund 524), a new playground (fund 523)and Balleld (fund 522) at Orange Memorial Park and two replacement bridges over Colma Creek (fund 525). Revenues generated from the Measure W sales tax are the prime source for servicing the bond repayments which are budgeted to be $18.7 million in FY2025-26 and show as transfers out to the debt service fund (fund 461) from which payments are ultimately made. Fund Balance All funds in Fund 515 - Capital Improvements - Police Station are depleted, completing the project. Fund 519 - Capital Improvements - Civic Center Campus - Phase II has a decline in fund balance of 17% due to capital funding. These funds are for bond nancing where all proceeds have been received, it is anticipated that all funds will be expended. Name FY 2023 FY 2024 FY 2025 FY 2026 % Change Restricted       515 - Capital Improvements - Police Station 361,625 140,000 ---100% 517 - Capital Improvements - City Street Paving Program 2,907,723 491,213 491,213 -0% 518 - Capital Improvements -          Solar Rooves Installation (City Corp Yard & LPR)1,992,800 1,709,784 1,709,784 1,709,784 0% 519 - Capital Improvements - Civic Center Campus - Phase II 10,262,879 5,718,457 4,758,457 886,043 -17% 522 - Capital Improvements - Orange Memorial Park Balleld 3,483,805 1,721,330 1,721,330 865,073 0% 523 - Capital Improvements -          Orange Memorial Park Playground Replacement 2,200,000 2,200,000 2,200,000 2,200,000 0% 524 - Capital Improvements - New Aquatics Center 52,044,635 48,095,877 47,834,991 8,293,182 -1% 525 - Capital Improvements - Colma Creek Bridge Replacement 1,500,000 1,500,000 1,500,000 1,500,000 0% Total:$76,144,672 $68,801,333 $67,440,447 $15,454,081 -2% Changes and Highlights FY 2025-26 Expenditures: None. FY 2024-25 Expenditures: $   140,000 - Bond interest earnings used to complete the police station project. $   960,000 - Bond interest earnings used to complete the L|PR project. $   260,886 - Debt service payments from the Aquatics Center Fund (524) which shows the capitalized interest payment on the 2022A bonds. $1,360,886 TOTAL City of South San Francisco | FY2025-26 Budget Book Page 97 Governmental - non-Major Funds Governmental Funds are designated for revenues and expenditures that are classied as government-type activities. These activities, which are nanced primarily through taxes, provide infrastructure improvements including housing rehabilitation, trafc improvements, land improvements, park facilities and public facility improvements. Governmental Funds have been divided into Major and non-Major classications. The Governmental non-Major funds consists of the Park-In-Lieu funds, Gas Tax Fund, Measure A Fund, Road Maintenance & Rehabilitation Act (SB1) Fund, Measure W Fund, Community Development Block Grant Fund, Common Greens Maintenance District funds, Solid waste Reduction Fund, Supplemental Law Enforcement Fund, City Programs Fund, Sewer Capacity Charge Fund, and Consolidated Impact Fees Fund.   City of South San Francisco | FY2025-26 Budget Book Page 98 American Rescue Plan Act Special Revenue Fund (201) This Special Revenue fund was created to receive $12.28 million allocated by the US Treasury to the City of South San Francisco as part of the American Rescue Plan Act passed in March 2021. Treasury has issued a Final Rule document which stipulates how these funds can be spent to help the City recover from the impacts of the COVID-19 pandemic.   Summary This special revenue fund consists of one-time federal money received in FY 2020-21 and fully expended or obligated by FY 2023-24. As a result, there were no revenues nor expenditures in this fund for FY 2024-25, and none are expected in FY 2025- 26. Of the total funds, $1.2 million was obligated for the City's Fiber Optic Cable and Critical City Sites Network Design Project, which is expected to be completed prior to the end of 2026, as required. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $1M $2M $3M $4M $5M $6M Budgeted Revenues by Source Cash received from the US Treasury is held in the fund as Deferred Revenue on the balance sheet and only recognized when expenditures are incurred. As a result, total revenues for prior years are equal to expenditures.  Revenue Source Revenue From Other Agencies $4,988,611 $0 $0 $0 0% Total Revenue Source:$4,988,611 $0 $0 $0 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Budgeted Expenditures by Type All expenditures from this Fund are for activities permitted under the American Rescue Plan Act. For FY 2025-26, all funds have been previously allocated, and so no additional expenditures are budgeted. City of South San Francisco | FY2025-26 Budget Book Page 99 Expense Objects Transfers $4,988,611 $0 $0 $0 0% Total Expense Objects:$4,988,611 $0 $0 $0 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Fund Balance As revenues are matched to expenditures, there is never a fund balance in this fund. However, as noted above, of the $12.28 million allocated to the City, all but $1.2 million has been spent. The remaining amount has been obligated for the City's ber optic project and is expected to be fully expended by the federal deadline. City of South San Francisco | FY2025-26 Budget Book Page 100 Affordable Housing Fund (205) The housing requirement in the City provides that 20% of new residential housing units (for projects of four or more units) be affordable. The in-lieu fees accounted for in this fund (in-lieu of production of affordable housing units by the developer) provide new residential development's share of affordable housing units. Summary Expenditures in the Affordable Housing Trust Fund are typically appropriated concurrently with the acceptance of federal housing grant awards from HUD. Due to the timing of the grant award process this year, the associated revenues and expenditures are not reected in the adopted FY 2025-26 budget. Instead, they will be incorporated through a budget amendment once the grant is awarded. Historically, Fund 205 has been supported by irregular and unpredictable revenues, similar to an impact fee structure. As a result, these revenues are not budgeted in advance. However, beginning in FY 2024-25, a new ongoing revenue source has been added: rental income from City-owned property located at 226–246 Grand Avenue, which is expected to generate approximately $260,000 annually and is included in the budget for FY 2025-26. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $100K $200K $300K Affordable Housing Fund (205) Comprehensive Summary Beginning Fund Balance:$689,312 $389,630 $389,630 $443,514 Revenues Interest & Rent $25,449 $0 $0 $260,000 Other Revenues $0 $0 $0 $17,700 Total Revenues:$25,449 $0 $0 $277,700 Expenditures Salaries And Benefits $1,156 $92,741 $92,741 $0 Supplies And Services $128,501 $151,050 $173,350 $0 Total Expenditures:$129,657 $243,791 $266,091 $0 Total Revenues Less Expenditures:-$104,208 -$243,791 -$266,091 $277,700 Ending Fund Balance:$585,104 $145,839 $123,539 $721,214 Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted City of South San Francisco | FY2025-26 Budget Book Page 101 Fund Balance The revenue source for this fund has historically been only an in-lieu fee, which is difcult to forecast, so these totals show a "worst-case" scenario. Beginning in FY 2024-25 rent from the City owned 226-246 Grand Ave has been added to the fund. Since there is no operating reserve in this fund, it is appropriate to allocate all reserves. Given the new revenue source and as yet unallocated expenses, the fund balance is shown as increasing for FY 2025-26. Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $200K $400K $600K $800K Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $389,630 $443,514 $721,214 62.6% Nonspendable $0 $0 $0 0% Total Fund Balance:$389,630 $443,514 $721,214 62.6% Changes and Highlights FY 2025-26 No expenses budgeted, they will be incorporated through a budget amendment once the City's Housing and Urban Development (HUD) grant is awarded. City of South San Francisco | FY2025-26 Budget Book Page 102 Park In-Lieu Fees Fund (206/207/209) The City’s ordinance, as authorized by the Quimby Act, requires park land dedication in proposed residential subdivision or payment of an in-lieu fee. In the event the proposed residential subdivision is less than 50 parcels, the City may only require the payment of an in-lieu fee. The fees may only be used for acquiring land and developing new park and recreation facilities, or for the rehabilitation and enhancement of existing neighborhood parks, community parks, and recreational facilities. Summary As with FY 2024-25, the FY 2025-26 budget includes no revenue or expenditures for these funds. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $500K $1M $1.5M $2M City of South San Francisco | FY2025-26 Budget Book Page 103 Fund Balance Name FY 2023 FY 2024 FY 2025 FY 2026 % Change Restricted       Park In-Lieu Fee Zone 1 Fund (206)----N/A Park In-Lieu Fee Zone 2 Fund (207)80,786 80,786 76,117 76,117 0% Park In-Lieu Fee Zone 3 Fund (209)2,453,224 403,475 649,789 649,798 0% Total:2,534,010 484,261 725,915 725,915 0% Changes and Highlights No operating activities are projected for FY 2025-26. City of South San Francisco | FY2025-26 Budget Book Page 104 Gas Tax Fund (210) The Gas Tax is the City's share of the state tax collected on gasoline purchases. Distributed by the State of California, these funds are used for the maintenance and improvment of streets, sidewalks, storm systems, and related infrastructure. Summary In FY 2025-26, the Gas Tax Fund is projected to receive $2.15 million, which is $0.04 million higher than the prior scal year. This represents a change of 2.1%. Expenditures are projected to total $1.81 million, an increase of $0.18 million, or 10.7%, over the prior scal year. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $500K $1M $1.5M $2M $2.5M City of South San Francisco | FY2025-26 Budget Book Page 105 Budgeted Revenues by Source The chart and table below show that the vast majority of the FY2025-26 budget revenue is received from other agencies. $1.8 million is to be received from the State of California, which is the agency responsible for distributing the City's share of taxes received from the purchases of gasoline at fuel stations by consumers, and $0.25 million is budgeted to be received from the City/County Association of Governments (C/CAG) for congestion relief and trafc-related activities. A small amount of revenue is to be received in this fund ($15,000) from interest generated on City investments. Budgeted Revenues by Source vs Historical MillionsInterest & Rent Revenue From Other Agencies FY2024FY2025FY2026$0 $0.5 $1 $1.5 $2 $2.5 Revenue Source Revenue From Other Agencies $2,043,296 $2,085,300 $2,085,300 $2,130,000 2.1% Interest & Rent $29,928 $15,000 $15,000 $15,000 0% Total Revenue Source:$2,073,224 $2,100,300 $2,100,300 $2,145,000 2.1% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 106 Budgeted Expenditures by Type All of the $1.81 million FY 2025-26 budget expenditures are transfers out to other funds. $920,000 is budgeted for a transfer out to the General Fund and $670,000 as a transfer out as a general subsidy to the City's Storm Water fund, which relies on the revenue for Storm Water operations and related capital projects. The remaining $220,000 is budgeted as a transfer out for Capital Improvement. Budgeted Expenditures vs Historical MillionsCapital Outlay Transfers FY2024FY2025FY2026$0 $0.5 $1 $1.5 $2 Expense Objects Capital Outlay TRANSFER OUT TO CAPITAL IMPROV $128,488 $45,000 $753,922 $220,000 388.9% Total Capital Outlay:$128,488 $45,000 $753,922 $220,000 388.9% Transfers TRANSFER OUT TO GENERAL FUND $920,605 $920,000 $920,000 $920,000 0% TRANSFER OUT TO STORM WATER FD $670,000 $670,000 $670,000 $670,000 0% Total Transfers:$1,590,605 $1,590,000 $1,590,000 $1,590,000 0% Total Expense Objects:$1,719,093 $1,635,000 $2,343,922 $1,810,000 10.7% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 107 Fund Balance After a drop in budgeted fund balance in FY 2023-24 due to expenditures exceeding revenues, the fund balance is projected to continue to recover in FY 2025-26 as revenues will exceed expenditures due to limited funding of CIP projects.   Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $1M $250K $500K $750K Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $45,530 $606,467 $941,467 55.2% Nonspendable $0 $0 $0 0% Total Fund Balance:$45,530 $606,467 $941,467 55.2% Changes and Highlights FY25-26 Capital Project Transfers: Amount Project Name Project# $ 120,000 Citywide Miscellaneous Striping st2602 100,000 Tanforan Ave Reconstruction st2601 $ 220,000 Total City of South San Francisco | FY2025-26 Budget Book Page 108 Measure A-1/2 Cent Transportation Sales Tax (211) Measure A is a voter-approved half-cent sales tax in San Mateo County. Originally approved in 1988, and set to expire in 2008, the measure was reauthorized by voters in 2004 to continue through 2033. The sales tax revenue is distributed by the County and is used to fund road and trafc improvements, as well as the South City Shuttle.  Summary In FY 2025-26, the Measure A - 1/2 Transportation Sales Tax is projected to receive $2.13 million, which is $0.03 million higher than the prior scal year. This represents a change of 1.4%. Expenditures are projected to total $2.3 million, an increase of $0.13 million, or 6.0%, over the prior scal year. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $500K $1M $1.5M $2M $2.5M $3M City of South San Francisco | FY2025-26 Budget Book Page 109 Budgeted Revenues by Source The chart and table below show that revenue in the Measure A fund comes primarily from taxes (98.8%), specically a half- cent County sales tax. The remaining revenue budget is a share of interest income generated from the investment of City funds. Budgeted and Historical Revenues by Source MillionsInterest & Rent Taxes FY2024FY2025FY2026$0 $0.5 $1 $1.5 $2 $2.5 $3 Revenue Source Taxes $2,203,772 $2,081,000 $2,081,000 $2,109,700 1.4% Interest & Rent $263,190 $25,000 $25,000 $25,000 0% Total Revenue Source:$2,466,962 $2,106,000 $2,106,000 $2,134,700 1.4% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 110 Budgeted Expenditures by Type $2.31 million is included in the FY 2025-26 budget for Measure A expenditures, all of which are transfers out to other funds. $0.3 million of these transfers is to the General Fund for operation of the South City Shuttle. $2.03 million is to be transferred out for various Capital Improvement Projects, which include $0.5 million for pavement repair and crack seal, $0.33 million for citywide trip hazard and miscellaneous striping, and $1.2 million for surface seal ($1.0 million for 2026, and $0.2 million for 2027). Budgeted Expenditures vs Historical MillionsTransfers Capital Outlay FY2024FY2025FY2026$0 $0.5 $1 $1.5 $2 $2.5 Expense Objects Capital Outlay TRANSFER OUT TO CAPITAL IMPROV $520,071 $1,900,000 $6,802,647 $2,030,000 6.8% Total Capital Outlay:$520,071 $1,900,000 $6,802,647 $2,030,000 6.8% Transfers TRANSFER OUT TO GENERAL FUND $273,112 $280,847 $280,847 $280,847 0% Total Transfers:$273,112 $280,847 $280,847 $280,847 0% Total Expense Objects:$793,183 $2,180,847 $7,083,494 $2,310,847 6% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 111 Fund Balance Available fund balance will decline slightly in FY2025-26 due to expenditures exceeding revenues but will remain comparable with the prior year.  Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $500K $1M $1.5M $2M $2.5M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $1,742,805 $2,258,391 $2,082,244 -7.8% Nonspendable $0 $0 $0 0% Total Fund Balance:$1,742,805 $2,258,391 $2,082,244 -7.8% Changes and Highlights $1,000,000 - 2026 Street Surface Seal (st2505)    500,000 - 2026 Pavement Repair and Crack Seal (st2605)    200,000 - 2027 Surface Seal (st2604)    180,000 - Citywide Miscellaneous Striping (st2602)    150,000 - Citywide Trip Hazard (st2603) $2,030,000 TOTAL CIP City of South San Francisco | FY2025-26 Budget Book Page 112 Road Maintenance & Rehab (SB1) (212) Senate Bill (SB) 1, Chapter 5, Statutes of 2017, created the Road Maintenance and Rehabilitation Program to address deferred maintenance of the California State Highway system and the local street and road system. These funds may be used for basic road maintenance, rehabilitation, and critical safety projects within the local streets and roads system. Summary In FY 2025-26, the Road Maintenance & Rehabilitation (SB1) Fund is projected to receive $1.74 million, which is $0.04 million higher than the prior scal year. This represents a change of 2.5%. Expenditures are projected to total $2.3 million, which is higher than the prior scal year. This represents a change of $1.4 million, or 155.6%. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $500K $1M $1.5M $2M $2.5M City of South San Francisco | FY2025-26 Budget Book Page 113 Budgeted Revenues by Source $1.74 million in revenue is expected to be received by the SB1 fund in FY 2025-26 which is higher than the prior year by $0.04 million. 100% of the revenue is received directly from the state of California to fund street and road improvement programs. Budgeted Revenues by Source vs Historical MillionsInterest & Rent Revenue From Other Agencies FY2024FY2025FY2026$0 $0.5 $1 $1.5 $2 Revenue Source Revenue From Other Agencies $1,676,727 $1,696,230 $1,696,230 $1,738,000 2.5% Interest & Rent $157,905 $0 $0 $0 0% Total Revenue Source:$1,834,632 $1,696,230 $1,696,230 $1,738,000 2.5% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 114 Budgeted Expenditures by Type FY2025–26 will see increase spending on street resurfacing projects from this fund. All FY2025–26 expenditures, totaling $2.3 million, are shown as a transfer to Fund 510 (Capital Projects Fund) to support the 2026 Street Surface Seal project ST2505. Budgeted Expenditures vs Historical MillionsCapital Outlay FY2024FY2025FY2026$0 $0.5 $1 $1.5 $2 $2.5 Expense Objects Capital Outlay $469,146 $900,001 $5,403,558 $2,300,000 155.6% Total Expense Objects:$469,146 $900,001 $5,403,558 $2,300,000 155.6% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 115 Fund Balance Following the projected negative balance in this fund for FY 2023-24 due to the $5 million adjusted FY 2023-24 budget, expenditures for road projects are reduced in FY 2024-25 to allow the fund balance to return to a positive $1.7 million. For FY 2025-26 all reserves and incoming revenue have been allocated to projects. Since there is no operating reserve in this fund, it is appropriate to allocate all reserves. Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $-750000 $-500000 $-250000 $0 $250K $500K $750K Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $-565,470 $576,375 $14,375 -97.5% Nonspendable $0 $0 $0 0% Total Fund Balance:$-565,470 $576,375 $14,375 -97.5% Changes and Highlights $2,300,000 - 2026 Street Surface Seal (st2505) $2,300,000 Total CIP City of South San Francisco | FY2025-26 Budget Book Page 116 SMC Measure W 1/2 Cent Sales Tax (213) San Mateo County Measure W is a half-cent sales tax for congestion relief and road repair. The measure was approved by San Mateo County voters in November 2018. The sales tax revenues generated are distributed by the County, with a portion allocated to cities based on a specic formula. Summary In FY 2025-26, the SMC Measure W 1/2 Cent Sales Tax is projected to receive $0.96 million, which is $0.02 million lower than the prior scal year. This represents a change of 1.8%. Expenditures are projected to total $0.50 million, an decrease of -$1.40 million, or 73.7%, over the prior scal year. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $500K $1M $1.5M $2M City of South San Francisco | FY2025-26 Budget Book Page 117 Budgeted Revenues by Source $0.96 million is budgeted in tax revenue to be received by this fund from San Mateo County in FY 2025-26.  Budgeted Revenues vs Historical by Source MillionsInterest & Rent Taxes FY2024FY2025FY2026$0 $0.25 $0.5 $0.75 $1 $1.25 Revenue Source Taxes $1,035,179 $974,258 $974,258 $956,780 -1.8% Interest & Rent $105,508 $0 $0 $0 0% Total Revenue Source:$1,140,687 $974,258 $974,258 $956,780 -1.8% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 118 Budgeted Expenditures by Type $0.5 million in projects is shown as a transfer to Fund 510 (Capital Projects Fund) for the 2026 Pavement Repair and Crack Seal project (ST2605). Budgeted Expenditures vs Historical MillionsCapital Outlay FY2024FY2025FY2026$0 $0.5 $1 $1.5 $2 Expense Objects Capital Outlay $840,764 $1,899,999 $2,596,799 $500,000 -73.7% Total Expense Objects:$840,764 $1,899,999 $2,596,799 $500,000 -73.7% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 119 Fund Balance The entire fund balance of the SMC Measure W Half Cent Sales Tax Fund is restricted to congestion relief and transit capital improvements, as approved by voters in 2018. The chart below illustrates a signicant increase in the fund balance due to the reduction in allocation of funds for capital improvement projects in FY 2025-26. Since there is no operating reserve in this fund, it is appropriate to allocate all reserves. Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $250K $500K $750K $1M $1.25M $1.5M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $1,210,937 $428,359 $885,139 106.6% Nonspendable $0 $0 $0 0% Total Fund Balance:$1,210,937 $428,359 $885,139 106.6% Changes and Highlights $  500,000 - 2026 Pavement Repair and Crack Seal, (st2605) $  500,000 Total CIP City of South San Francisco | FY2025-26 Budget Book Page 120 Community Development Block Grant (222) The Community Development Block Grant (CDBG) is a federally funded program administered by the Department of Housing and Urban Development (HUD). This program supports the improvement of housing and commercial facilities and provides grants to local nonprot agencies. Summary The Community Development Block Grant (CDBG) fund is primarily used to manage grants from the Department of Housing and Urban Development (HUD). This year, given the timing of the grant award process, the revenue and expenses associated with those grants are not included in the budget and will be added at the time of the grant award through a budget amendment process. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $200K $400K $600K $800K City of South San Francisco | FY2025-26 Budget Book Page 121 Budgeted Revenues by Source With the expected grant from HUD not included in the current budget, due to the uncertainty fo the grant funding at the time of budget preparation, the only remaining revenue source is rent. The Economic and Community Development (ECD) department will bring HUD grant award information and amounts separately for Council adoption. Budgeted Revenues by Source Interest & Rent (100%)Interest & Rent (100%)Interest & Rent (100%) Budgeted Revenue by Source vs Historical MillionsRevenue From Other Agencies Charges for Services Interest & Rent FY2024FY2025FY2026$0 $0.2 $0.4 $0.6 $0.8 Revenue Source Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 122 Revenue From Other Agencies $240,767 $556,019 $556,019 $0 -100% Charges for Services $0 $200,000 $200,000 $0 -100% Interest & Rent $13,871 $5,000 $5,000 $5,000 0% Total Revenue Source:$254,638 $761,019 $761,019 $5,000 -99.3% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Budgeted Expenditures by Type All budgeted expenditures are classied under the supplies and services category. The FY 2025-26 budget does not include the expected grant award, and therefore does not include the expenses to be offset by those grants. Once ECD receives conrmation of HUD grant award amounts, they will bring this budget separately to Council for adoption. Budgeted Expenditures by Type vs Historical MillionsSalaries And Benefits Supplies And Services FY2024FY2025$0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 Expense Objects Salaries And Benefits $18,208 $0 $0 $0 0% Supplies And Services $117,916 $556,019 $807,311 $0 -100% Total Expense Objects:$136,124 $556,019 $807,311 $0 -100% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 123 Fund Balance After maintaining a negative fund balance for several years, this Fund is projected to end FY 2024-25 with a slightly positive balance, which carries forward through FY 2025-26. Since this fund does not maintain an operating reserve and is intended solely to track the receipt and expenditure of federal grant revenues, it is appropriate for the fund to operate with a near-zero balance. All available reserves are allocated to support grant-funded activities, ensuring full utilization of available resources in alignment with grant requirements. Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $-250000 $-200000 $-150000 $-100000 $-50000 $0 $50K Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $-205,000 $15,264 $20,264 32.8% Nonspendable $0 $0 $0 0% Total Fund Balance:$-205,000 $15,264 $20,264 32.8% Changes and Highlights The Community Development Block Grant (CDBG) fund is primarily used to manage grants from the Department of Housing and Urban Development (HUD). This year, given the timing of the grant award process, the revenue and expenses associated with those grants are not included in the budget and will be added at the time of the grant award through a budget amendment process. City of South San Francisco | FY2025-26 Budget Book Page 124 Common Greens Maintenance Districts (231/232/ 233/234) There are four Common Greens Maintenance Districts within the City: West Park 3 (Fund 231), Stonegate Ridge (Fund 232), Willow Gardens (Fund 233), and West Park 1 & 2 (Fund 234). The funding for these maintenance districts comes from a portion of the 1% property tax levy on the assessed value paid by the parcel owners. The property tax that funds these maintenance districts is diverted from the City’s portion of property taxes that would otherwise go to the General Fund. These funds provide for sidewalk, parks, and tree maintenance within each of the maintenance districts.  Summary In FY 2025-26, the Common Greens Maintenance Districts are projected to receive $2.22 million, which is unchanged compared to the prior scal year. Expenditures are projected to total $2.18 million, an increase of $0.02 million, or 0.8%, over the prior scal year. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $500K $1M $1.5M $2M $2.5M $3M Budgeted Revenues by Source The $2.2 million of budgeted revenues in these four maintenance district funds is through taxation, i.e. a portion of the property tax levy on property parcels paid by property owners. Revenue Source Taxes $2,430,568 $2,218,746 $2,218,746 $2,218,746 0% Total Revenue Source:$2,430,568 $2,218,746 $2,218,746 $2,218,746 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Revenue by Fund City of South San Francisco | FY2025-26 Budget Book Page 125 Budgeted and Historical 2026 Revenue by Fund MillionsWillow Gardens Maint (233) Stonegate Ridge Maint (232) West Park Maint Dist 1&2 (234) West Park Maint Dist 3 (231)FY2024FY2025FY2026$0 $0.5 $1 $1.5 $2 $2.5 $3 West Park Maint Dist 3 (231)$1,131,095 $1,057,877 $1,057,877 $1,057,877 0% Stonegate Ridge Maint (232)$389,537 $354,310 $354,310 $354,310 0% Willow Gardens Maint (233)$186,801 $115,586 $115,586 $115,586 0% West Park Maint Dist 1&2 (234)$723,135 $690,973 $690,973 $690,973 0% Total:$2,430,568 $2,218,746 $2,218,746 $2,218,746 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Expenditures by Fund City of South San Francisco | FY2025-26 Budget Book Page 126 Budgeted and Historical 2026 Expenditures by Fund MillionsWillow Gardens Maint (233) Stonegate Ridge Maint (232) West Park Maint Dist 1&2 (234) West Park Maint Dist 3 (231)FY2024FY2025FY2026$0 $0.5 $1 $1.5 $2 $2.5 $3 West Park Maint Dist 3 (231)$1,327,588 $896,243 $1,153,243 $1,097,708 22.5% Stonegate Ridge Maint (232)$283,600 $367,414 $385,504 $260,579 -29.1% Willow Gardens Maint (233)$101,290 $132,351 $182,351 $109,294 -17.4% West Park Maint Dist 1&2 (234)$767,891 $767,850 $973,850 $714,652 -6.9% Total:$2,480,369 $2,163,858 $2,694,948 $2,182,234 0.8% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 127 Budgeted Expenditures by Type The charts and tables below show that in FY 2025-26, 33.5% of the expenditure budget within these four maintenance district funds is for salaries and benets of City staff working to help maintain these districts. 45.5% is for supplies and services to support that work, with the remainder (21%) for interdepartmental charges such as general administration overhead. Supplies And Services (45.5%)Supplies And Services (45.5%)Supplies And Services (45.5%) Salaries And Benefits (33.5%)Salaries And Benefits (33.5%)Salaries And Benefits (33.5%) Interdepartmental (21%)Interdepartmental (21%)Interdepartmental (21%) Budgeted Expenditures by Type vs Historical MillionsCapital Outlay Interdepartmental Salaries And Benefits Supplies And Services FY2024FY2025FY2026$0 $0.5 $1 $1.5 $2 $2.5 $3 City of South San Francisco | FY2025-26 Budget Book Page 128 Expense Objects Salaries And Benefits $1,055,597 $781,077 $781,077 $730,453 -6.5% Supplies And Services $936,674 $924,078 $993,078 $993,078 7.5% Capital Outlay $37,910 $0 $462,090 $0 0% Interdepartmental $450,189 $458,703 $458,703 $458,703 0% Total Expense Objects:$2,480,369 $2,163,858 $2,694,948 $2,182,234 0.8% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Fund Balance For the West Park Maint District 3, the West Park Main Distrct 3 which will decline 36%, but remain above the FY 2024 year-end balance. For the other funds in this group, there is a slight adjustment to the fund balance. Name FY2024 FY2025 FY2026 % Change Restricted      West Park Maint Dist 3 (fund 231)53,107 110,683 70,852 -36% Stonegate Ridge Maint (fund 232)1,975,633 1,963,702 2,067,433 5% Willow Gardens Maint (fund 233)378,211 455,851 462,143 1% West Park Maint Dist 1&2 (fund 234)1,789,752 1,520,395 1,496,716 -1% Total:4,196,703 4,251,592 $4,097,143 1%52 Changes and Highlights FY 2025-26 Changes & Highlights: Positions: None Supplies and Services: None City of South San Francisco | FY2025-26 Budget Book Page 129 Oyster Point CFD Special Tax B (236) This fund accounts for tax revenue owed to the City related to the Oyster Point Community Facilities District (CFD), which was created in FY 2021-22 for the development of the Oyster Point area within the City by the Kilroy Realty Group. Special Tax B is levied to cover CFD-related maintenance and administrative costs. Summary In FY 2025-26, the Oyster Point CFD Special Tax B (For City) is projected to receive $0.20 million, which is unchanged compared to the prior scal year. Expenditures are projected to total $0.31 million, an increase of $0.11 million, or 55.5%, over the prior scal year. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $100K $200K $300K $400K Budgeted Revenues by Source City of South San Francisco | FY2025-26 Budget Book Page 130 Budgeted Revenues vs Historical MillionsTaxes FY2024FY2025FY2026$0 $0.05 $0.1 $0.15 $0.2 $0.25 Revenue Source Taxes $199,016 $200,000 $200,000 $200,000 0% Total Revenue Source:$199,016 $200,000 $200,000 $200,000 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Budgeted Expenditures by Type Expenditures in this fund fall into two primary categories: (1) water utility expenses, previously not included in the budget, but adjsuted during the FY 2024-25 mid-year and to be included ongoing, which total $111,000, and (2) $200,000 for contract services associated with the fund’s operations and oversight. City of South San Francisco | FY2025-26 Budget Book Page 131 Budgeted Expenditures vs Historical MillionsSupplies And Services FY2024FY2025FY2026$0 $0.05 $0.1 $0.15 $0.2 $0.25 $0.3 $0.35 Expense Objects Supplies And Services $134,910 $200,000 $311,000 $311,000 55.5% Total Expense Objects:$134,910 $200,000 $311,000 $311,000 55.5% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 132 Fund Balance The inclusion in water utility expenses is expected to draw the fund balance down to nearly zero by the end of FY 2025-26. However, revenues are projected to increase in FY 2026-27, which will help offset future draws on reserves and support ongoing fund stability. Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $50K $100K $150K $200K Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $166,754 $119,860 $8,860 -92.6% Nonspendable $0 $0 $0 0% Total Fund Balance:$166,754 $119,860 $8,860 -92.6% Changes and Highlights None City of South San Francisco | FY2025-26 Budget Book Page 133 Solid Waste Reduction (250) The Solid Waste Management Fund is primarily funded from a dedicated fee payment made by the South San Francisco Scavenger Company, the City’s exclusive solid waste management franchise. Funding pays for monitoring and remediation costs associated with the closed Oyster Point landll and for other solid waste reduction efforts. Additional revenue comes from forfeited solid waste deposits, which are used to further the City's solid waste diversion goals. Summary In FY 2025-26, the Solid Waste Reduction is projected to receive $0.34 million, which is unchanged compared to the prior scal year. Expenditures are projected to total $0.39 million, which is lower than the prior scal year. This represents a change of -$0.20 million, or -34.4%. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $200K $400K $600K $800K City of South San Francisco | FY2025-26 Budget Book Page 134 Budgeted Revenues by Source Franchise fees paid by South San Francisco Scavenger Company is the primary source of revenue for the Solid Waste Fund, for FY 2025-26 this revenue remains at for the third scal year in a row. Additionally, in FY 2024-25 there was a budgeted $124,820 state grant (appearing as revenue from other agencies) which we have kept in the budget for FY 2025-26. Budgeted Revenues vs Historical MillionsRevenue From Other Agencies Charges for Services FY2024FY2025FY2026$0 $0.1 $0.2 $0.3 $0.4 Revenue Source Revenue From Other Agencies $0 $124,820 $124,820 $124,820 0% Charges for Services $228,666 $220,080 $220,080 $220,080 0% Total Revenue Source:$228,666 $344,900 $344,900 $344,900 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 135 Budgeted Expenditures by Type For FY 2025-26, expenses related to services are reduced as revenues do not support the ongoing operating expenses. Staff payroll have been reallocated from this fund and there is no captial outlay. The remaining 7.5% of expense is for interdepartmental transfer Supplies And Services (92.5%)Supplies And Services (92.5%)Supplies And Services (92.5%) Interdepartmental (7.5%)Interdepartmental (7.5%)Interdepartmental (7.5%) Budgeted Expenditures vs Historical MillionsSalaries And Benefits Capital Outlay Interdepartmental Supplies And Services FY2024FY2025FY2026$0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 $0.7 City of South San Francisco | FY2025-26 Budget Book Page 136 Expense Objects Salaries And Benefits $0 $44,745 $44,745 $0 -100% Supplies And Services $308,253 $362,150 $654,279 $362,150 0% Capital Outlay $53,308 $160,000 $160,000 $0 -100% Interdepartmental $28,633 $29,223 $29,223 $29,223 0% Total Expense Objects:$390,195 $596,118 $888,247 $391,373 -34.3% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 137 Fund Balance An 18% decline in Fund Balance in FY2025-26 is projected primarily due to normal operating costs exceeding the franchise fees to be collected from South San Francisco Scavenger Company. This is an ongoing draw from the fund and as the reserve exhausts, the General Fund will have to carry and additional burden. Since there is no operating reserve in this fund, it is appropriate to allocate all reserves. Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $100K $200K $300K $400K $500K $600K Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $511,434 $263,153 $216,680 -17.7% Nonspendable $0 $0 $0 0% Total Fund Balance:$511,434 $263,153 $216,680 -17.7% Changes and Highlights None. City of South San Francisco | FY2025-26 Budget Book Page 138 Supplemental Law Enforcement Services (260) The Citizens Option for Public Safety (COPS) program was adopted in 1996. Under the provisions of Government Code Section 30061, a percentage of the funds is allocated to counties and cities based upon population for law enforcement services. Each city is required to deposit these funds into a separate Supplemental Law Enforcement Services Fund to ensure they are not intermingled with General Fund dollars, and the funds must be spent on front-line law enforcement services.  Summary In FY 2025-26, the Supplemental Law Enforcement Services is projected to receive $0.16 million, which is unchanged compared to the prior scal year. Expenditures are projected to total $0.16 million, which is unchanged compared to the prior scal year. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $50K $100K $150K $200K Budgeted Revenues by Source City of South San Francisco | FY2025-26 Budget Book Page 139 Budgeted and Historical 2023 Revenues by Source MillionsInterest & Rent Taxes FY2024FY2025FY2026$0 $0.05 $0.1 $0.15 $0.2 Revenue Source Taxes $186,169 $160,000 $160,000 $160,000 $160,000 0% Interest & Rent $1,860 $0 $0 $0 $0 0% Total Revenue Source:$188,029 $160,000 $160,000 $160,000 $160,000 0% Name FY2024 Actual FY2024 Adopted Budget FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Expenditures by Expense Type City of South San Francisco | FY2025-26 Budget Book Page 140 Budgeted and Historical Expenditures by Expense Type MillionsSalaries And Benefits Transfers FY2024FY2025FY2026$0 $0.05 $0.1 $0.15 $0.2 Expense Objects Salaries And Benefits $28,029 $0 $0 $0 $0 0% Transfers $160,000 $160,000 $160,000 $160,000 $160,000 0% Total Expense Objects:$188,029 $160,000 $160,000 $160,000 $160,000 0% Name FY2024 Actual FY2024 Adopted Budget FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 141 Fund Balance There remains a slight fund balance from FY 2023-24 which carries thorugh FY 2025-26 as revenues are budgeted to match expenditures. Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $10K $20K $30K $40K Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $28,488 $35,864 $35,864 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$28,488 $35,864 $35,864 0% Changes and Highlights None City of South San Francisco | FY2025-26 Budget Book Page 142 City Programs Special Revenue Fund (280) This fund accounts for donations and other sources of revenue that are dedicated to specic programs. Principal reserves reect the Police Department's participation in the U.S. Department of Justice Asset Seizure Program and the Library Department's Project Read Program.  Summary In FY 2025-26, the City Programs Special Revenue Fund is projected to receive $0, which is unchanged compared to the prior scal year. Expenditures are projected to total $0.33 million, an increase of $0.01 million, or 2.2%, over the prior scal year. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $2M $4M $6M Budgeted Revenues by Source As with the FY 2023-24 and FY 2024-25 budgets, no revenues are budgeted for FY 2025-26, as the receipt of donations is very difcult to predict. Revenue Source Charges for Services $62,813 $0 $0 $0 0% Interest & Rent $783,233 $0 $0 $0 0% Other Revenues $1,412,923 $0 $0 $0 0% Total Revenue Source:$2,258,969 $0 $0 $0 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 143 Expenditures by Type Beginning FY 2025-26, Fund 280 will be used exclusively for transfers. In FY 2024-25, a portion of the reserves was used to fund a share of the planned Mental Health Clinician at $196,000, and $125,000 for Radio Upgrades completed during the same scal year. For FY 2025-26, $70,000 of the opioid settlement will help fund the new Crisis Intervention Specialist position in the Police Department, and an additional $60,000 will be transferred from the Police Asset Seizure Fund to the General Fund to offset related expenses for this new position. $300,000 will also be transferred out for the Linden Park Capital Improvement Project (pk2305). Expense Objects Supplies And Services $774,354 $321,000 $321,000 $196,000 -38.9% Capital Outlay $4,765,429 $0 $1,388,979 $0 0% Transfers $0 $0 $0 $132,000 N/A Total Expense Objects:$5,539,783 $321,000 $1,709,979 $328,000 2.2% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Fund Balance Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $1M $2M $3M $4M $5M $6M $7M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Total Fund Balance:$5,774,972 $4,453,096 $3,825,096 -14.1% City of South San Francisco | FY2025-26 Budget Book Page 144 Financial Summary FY2024 FY2025 FY2026 % Change Restricted $5,774,972 $4,453,096 $3,825,096 -14.1% Nonspendable $0 $0 $0 0% Total Fund Balance:$5,774,972 $4,453,096 $3,825,096 -14.1% City of South San Francisco | FY2025-26 Budget Book Page 145 Transit Station Enhancement In-Lieu Fee (290) This fund accounts for revenues that are collected as a negotiated community benet for transit-related projects. Summary For FY 2025-26, as in FY 2023-24 and FY 2024-25, the City projects no revenue or expenditures in this fund. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $25K $50K $75K $100K $125K City of South San Francisco | FY2025-26 Budget Book Page 146 Fund Balance With neither revenue nor expeditures in this fund, the balance is expected to remain the same at $2.8 million. Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $500K $1M $1.5M $2M $2.5M $3M $3.5M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $2,854,044 $2,921,111 $2,921,111 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$2,854,044 $2,921,111 $2,921,111 0% City of South San Francisco | FY2025-26 Budget Book Page 147 Debt Service Fund (461) The City's Debt Service fund is the fund in which all loan or bond payments are recorded. It receives transfers from other funds, such as Measure W for the bond repayments.  Summary The revenue and expenditure budget for FY 2025-26 is $13.24 million, which is $4,800 higher than the prior scal year. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $2.5M $5M $7.5M $10M $12.5M $15M City of South San Francisco | FY2025-26 Budget Book Page 148 Budgeted Revenues by Source The table below shows $13.2 million in transfers in the FY 2025-26 budget; this entire amount is funded by Measure W revenues. Transfers (100%)Transfers (100%)Transfers (100%) Transfers from Measure W are increasing as the capitalized interest used to help pay the bond payments due has been depleted. Budgeted and Historical Revenues by Source MillionsTransfers FY2024FY2025FY2026$0 $2.5 $5 $7.5 $10 $12.5 $15 City of South San Francisco | FY2025-26 Budget Book Page 149 Revenue Source Transfers $11,525,338 $13,231,738 $13,231,738 $13,236,538 0% Total Revenue Source:$11,525,338 $13,231,738 $13,231,738 $13,236,538 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Budgeted Expenditures by Type Expenditures in this fund are solely for bond payments for the three bonds issued following the passage of Measure W sales tax. Bond Issuance: 2020A - $43.9 million in bonds in FY2019-20 to help fund Library | Parks and Rec Center (L|PR) (Fund 519) and the new police station (Fund 515). 2021A - $86.4 million in FY2020-21 continued funding for the L|PR as well as to fund an expanded street rehabilitation program (Fund 517) and the installation of solar roofs at the LPR and City corporation yard (Fund 518). 2022A - $65.4 million in FY2021-22 to fund a new Aquatic Center (Fund 524), playground (Fund 523), and Balleld (Fund 522) at Orange Memorial Park, and two replacement bridges over Colma Creek (Fund 525). Revenues generated from the Measure W sales tax are the prime source for servicing the bond repayments, which are budgeted to be $13.2 million in FY2025-26. Payments on bonds have been increasing as expected. Going forward, there should be no further increases as the payments are at. Budgeted and Historical Expenditures by Type MillionsDebt Service FY2024FY2025FY2026$0 $2.5 $5 $7.5 $10 $12.5 $15 Expense Objects Debt Service $11,525,338 $13,231,738 $13,231,738 $13,236,538 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 150 Total Expense Objects:$11,525,338 $13,231,738 $13,231,738 $13,236,538 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Fund Balance As tranfers into the fund are used to make known debt payments, this fund never has a year end balance. Projections Fund Balance FY2024 FY2025 FY2026 $0 City of South San Francisco | FY2025-26 Budget Book Page 151 Sewer Capacity Charges (730) The revenue for this restricted fund is received from sewer capacity charges paid by users that connect to sewer facilities for the rst time, and by users who increase their sanitary sewer usage. The charge is typically due upon building permit issuance and is only charged to areas receiving sewer service from the City (fee collection excludes the Westborough area that receives sewer service from Daly City).  The fees collected assist with funding for required replacements, upgrades, and construction of sewer infrastructure not funded by other sources. This fund provides revenue to cover the costs associated with providing collection and treatment capacity for new and expanding development not funded by the East of 101 Sewer Impact Fee Program.  Summary In FY 2025-26, the Sewer Capacity Charges is projected to receive $1.30 million, and expenditures are projected to total $3,727, both of which are unchanged compared to the prior scal year. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $500K $1M $1.5M $2M $2.5M Budgeted Revenues by Source In the FY2025-26 revenue budget, $1.3 million in sewer capacity charges are projected to be received, which represents no change when compared to the prior year, as shown in the table below. Revenue Source Interest & Rent $522,836 $0 $0 $0 0% Other Revenues $1,453,256 $1,300,000 $1,300,000 $1,300,000 0% Total Revenue Source:$1,976,092 $1,300,000 $1,300,000 $1,300,000 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 152 Budgeted Expenditures by Type Expense Objects Interdepartmental $3,652 $3,727 $3,727 $3,727 0% Total Expense Objects:$3,652 $3,727 $3,727 $3,727 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Fund Balance For FY 2024-25, much of the fund balance was used to refund the Sewer Enterprise Fund for prior captial activity. With no budgeted capital expenditures for FY 2025-26, the fund balance is project to recover slighty. Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $2.5M $5M $7.5M $10M $12.5M $15M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $13,325,127 $1,971,998 $3,268,271 65.7% Nonspendable $0 $0 $0 0% Total Fund Balance:$13,325,127 $1,971,998 $3,268,271 65.7% Changes and Highlights None City of South San Francisco | FY2025-26 Budget Book Page 153 PEG Equipment & Access Fund (786) This fund was created in FY 2011-12 to account for franchise fees that the City receives and are used for the City’s Public, Educational, and Governmental channels. Summary In FY 2025-26, the PEG Equipment and Access is projected to receive $0.13 million, which is unchanged compared to the prior scal year. Expenditures are projected to total $0.33 million, an increase of $0.30 million over the prior scal year. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $100K $200K $300K $400K City of South San Francisco | FY2025-26 Budget Book Page 154 Budgeted Revenues by Source The pie chart below shows that 96.2% of the FY 2025-26 revenue budget in this fund is projected to be franchise fees. These fees are received from telecommunications operators such as AT&T, Comcast, and Wave/Astound. Compared to the FY 2023- 24 and FY 2024-25 adopted budgets, total projected fees are at. The remaining revenue budget is a share of interest income generated from the investment of City funds. Budgeted Revenue by Source Franchise Fees (96.2%)Franchise Fees (96.2%)Franchise Fees (96.2%) Interest & Rent (3.8%)Interest & Rent (3.8%)Interest & Rent (3.8%) Budgeted Revenue by Source vs Historical MillionsInterest & Rent Franchise Fees FY2024FY2025FY2026$0 $0.025 $0.05 $0.075 $0.1 $0.125 $0.15 $0.175 City of South San Francisco | FY2025-26 Budget Book Page 155 Revenue Source Franchise Fees $111,652 $125,000 $125,000 $125,000 0% Interest & Rent $37,043 $5,000 $5,000 $5,000 0% Total Revenue Source:$148,695 $130,000 $130,000 $130,000 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Budgeted Expenditures by Type Historically, the majority of budgeted expenditures in the PEG fund are transfers out to the Capital Improvements Program (CIP) to help fund various projects. $0.03 million is scheduled for FY 2025-26 to fund upgrading the video wall in the City's Emergency Operations Center which also operates as a backup location for council meetings. Expense Objects Supplies And Services $22,000 $25,000 $25,000 $325,000 1,200% Total Expense Objects:$22,000 $25,000 $25,000 $325,000 1,200% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 156 Fund Balance Fund balance is projected to decrease by 19.3% in FY 2025-26 to $0.8 million to fund the one-time purchase of new audio equipment for the City Manager's ofce. Given that this fund has no designated operating reserve, it is appropriate to fully allocate all available reserves. Projections Unassigned Committed Restricted Nonspendable Assigned FY2024 FY2025 FY2026 $0 $1M $250K $500K $750K $1.25M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $873,151 $1,011,869 $816,869 -19.3% Committed $0 $0 $0 0% Restricted $0 $0 $0 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$873,151 $1,011,869 $816,869 -19.3% Changes and Highlights There is a capital contribution of $0.03 million for upgrading the City Manager conference room audio equipment for special council meeting in FY2024-25. City of South San Francisco | FY2025-26 Budget Book Page 157 Impact Fee - Park Land Acquisition IF Fund (805) The Park Land Acquisition Fee is applied to residential and non-residential development projects to support the demands for parks and recreation spaces generated by new residents of residential development projects and new employees of non-residential development projects. The 2017 nexus study calculated the fee for park land acquisition based on the number of residents generated by each new type of residential unit and the number of employees per 1,000 square feet in nonresidential development projects. The City adopted the Park Land Acquisition Fee under the authority of the Mitigation Fee Act. Summary As with FY 2023-24 and FY 2024-25, the FY 2025-26 budget includes no revenue or expenditures for this fund. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $100K $200K $300K $400K City of South San Francisco | FY2025-26 Budget Book Page 158 Budgeted Revenues by Source Revenue Source Interest & Rent $131,365 $0 $0 $0 0% Other Revenues $6,250 $0 $0 $0 0% Total Revenue Source:$137,615 $0 $0 $0 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Budgeted Expenditures by Type As with FY 2023-24 and FY 2024-25, there is no expenditure budgeted in FY2025-26 for this fund.  Expense Objects Capital Outlay $313,453 $0 $2,998,966 $0 0% Total Expense Objects:$313,453 $0 $2,998,966 $0 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 159 Fund Balance Impact fees can be very difcult to predict.  If staff are not reasonably certain they will come in during a particular year, they are not included in the budget.  As a result, any actual fees received will serve to boost the fund balance. For FY 2025-26, with no activity, there is no change in the fund balance. Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $200K $400K $600K $800K Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $674,973 $690,776 $690,776 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$674,973 $690,776 $690,776 0% Changes and Highlights None City of South San Francisco | FY2025-26 Budget Book Page 160 Impact Fee - Park Construction IF Fund (806) The purpose of the Park Construction Fee fund is to provide funding for the construction of park facilities and improvements. The General Plan, the Parks & Recreation Master Plan, and the East of 101 Area Plan call for 3 acres of parkland and facilities per 1,000 new residents and ½ an acre of parkland and facilities per 1,000 new employees. Summary In FY 2025-26, the Impact Fee - Park Construction Impact Fees Fund is projected to receive $0, which is unchanged compared to the prior scal year. Expenditures are projected to total $5.07 million, an increase of $4.42 million, or 679.4%, over the prior scal year. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $1M $2M $3M $4M $5M $6M Budgeted Expenditures by Type There is a transfer of $5.07 million for FY 2025-26. This is to fund three different Capital Improvment Projects: $3 million for Cypress and Pine Park renovation (pk2601), $1.67 millioin for Centennial Trail Improvements (pk2302), and $0.4 million for pickleball courts (pk2501). Expense Objects Capital Outlay $645,532 $650,000 $1,196,463 $5,066,279 679.4% Total Expense Objects:$645,532 $650,000 $1,196,463 $5,066,279 679.4% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 161 Fund Balance Impact fees can be very difcult to predict. If staff are not reasonably certain they will come in during a particular year, they are not included in the budget. As a result, any actual fees received will serve to boost the fund balance. For FY 2025-26, the $5 million draw for capital comes from the fund balance. Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $2.5M $5M $7.5M $10M $12.5M $15M $17.5M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $10,207,618 $14,676,817 $9,610,538 -34.5% Nonspendable $0 $0 $0 0% Total Fund Balance:$10,207,618 $14,676,817 $9,610,538 -34.5% Changes and Highlights $3,000,000 - Cypress and Pine Park Renovation Project (pk2601) 1,666,279 - Centennial Trail Improvements (pk2302)    400,000 - Dedicated Pickleball Courts (pk2501) $5,066,279 TOTAL CIP City of South San Francisco | FY2025-26 Budget Book Page 162 Impact Fee - East of 101 Sewer IF Fund (810) This plan area development impact fee program funds new development's fair share of new and rehabilitated sewer collection and treatment facilities to serve the area located east of US 101 in the City. Summary In FY 2025-26, the East of 101 Sewer Impact Fees Fund is projected to receive $0, which is unchanged compared to the prior scal year. Expenditures are projected to total $3.40 million, a decrease of $2.60 million, or 43%, over the prior scal year. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $2M $4M $6M $8M City of South San Francisco | FY2025-26 Budget Book Page 163 Budgeted Revenues by Source Revenue Source Interest & Rent $233,730 $0 $0 $0 0% Other Revenues $861,755 $0 $0 $0 0% Total Revenue Source:$1,095,485 $0 $0 $0 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Budgeted Expenditures by Type There is a small amount of expenditure ($3,727) budgeted in FY 2025-26 for this fund for interdepartmental charges, which is in line with prior years. The majority of the expense is for the Oyster Point Pump Station (ss2202) for $3.4 million total, while $0.5 million each is projected for the sanitary sewer pump station master plan (ss2603) and Harbor Way main sewer upsize (ss2602). Expense Objects Capital Outlay $4,327 $6,000,000 $1,940,673 $3,400,000 -43.3% Interdepartmental $3,652 $3,727 $3,727 $3,727 0% Total Expense Objects:$7,979 $6,003,727 $1,944,400 $3,403,727 -43.3% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 164 Fund Balance The chart below shows a negative fund balance at year end this is due to the $6 million transfer out for Oyster Point Sewer Upsize project (ss2401). Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $1M $2M $3M $4M $5M $6M $7M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $5,895,600 $3,456,590 $52,863 -98.5% Nonspendable $0 $0 $0 0% Total Fund Balance:$5,895,600 $3,456,590 $52,863 -98.5% Changes and Highlights Capital Improvement Transfers: $2,400,000 - Oyster Point Pump Station (ss2202)    500,000 - Harbor Way Sewer Main Upsize (ss2602)    500,000 - Sanitary Sewer Pump Station Master Plan (ss2603) $3,400,000 TOTAL City of South San Francisco | FY2025-26 Budget Book Page 165 Impact Fee - East of 101 Trafc IF Fund (820) The 2001 nexus study for this plan area fee was adopted by the City Council in 2002. The study identied the need for new and expanded roadway and intersection improvements to serve the area located east of US 101 in the City of South San Francisco. The study was updated on May 6, 2005, and on July 19, 2007. This fee program includes an annual ination adjustment and a 2.5% administrative fee. There are 26 road improvements listed in the 2007 study and two studies for a total of 28 projects. The study determined that new development would be responsible for 100% of the cost of the 28 projects. Summary In FY 2025-26, the East of 101 Trafc Impact Fees is projected to receive $0 due to this fee being discontinued. Expenditures are projected to total $3,727, which is lower than the prior scal year. This represents a change of -$0.20 million, or -98.2%. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $1M $2M $3M $4M City of South San Francisco | FY2025-26 Budget Book Page 166 Budgeted Revenues by Source Revenue Source Interest & Rent $706,357 $0 $0 $0 0% Other Revenues $831,641 $0 $0 $0 0% Total Revenue Source:$1,537,998 $0 $0 $0 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Budgeted Expenditures by Type There is a small amount of expenditure ($3,727) budgeted in FY2025-26 for this fund for interdepartmental charges, which is in line with prior years. With the Shoreline Protection and Connectivity project (sd2402) expected to be completed by the end of FY 2024-25, there is no transfer to Capital Outlay budgeted this scal year. Expense Objects Capital Outlay $2,940,548 $200,000 $11,467,128 $0 -100% Interdepartmental $3,652 $3,727 $3,727 $3,727 0% Total Expense Objects:$2,944,200 $203,727 $11,470,855 $3,727 -98.2% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 167 Fund Balance With no capital project transfers budgeted for FY 2025-26, fund balance remains stable. However, the fund balance will continue to decrease and eventually be depleted as the revenue source (the impact fee) has been discontinued. Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $1M $2M $3M $4M $5M $6M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $4,985,156 $4,726,420 $4,722,693 -0.1% Nonspendable $0 $0 $0 0% Total Fund Balance:$4,985,156 $4,726,420 $4,722,693 -0.1% Changes and Highlights None City of South San Francisco | FY2025-26 Budget Book Page 168 Impact Fee - Public Safety IF Fund (821/826) This citywide development impact fee program funds new development’s fair share of new and expanded capital facility and equipment to serve the City. Fund 821 holds Fire's share, while 826 holds Police's. The Citywide Development Impact Fee Program ensures that new development contributes its fair share toward the cost of new and expanded capital facilities and equipment necessary to serve the growing community. Fund 821 holds the portion allocated for Fire Department needs, while Fund 826 holds the share designated for Police Department facilities and equipment. Summary The FY 2025-26 Fire Public Safety Impact Fee budget includes no revenue or expenditures for this fund. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $200K $400K $600K $800K City of South San Francisco | FY2025-26 Budget Book Page 169 Budgeted Revenues by Source Revenue Source Interest & Rent $94,966 $0 $0 $0 0% Other Revenues $479,709 $0 $0 $0 0% Total Revenue Source:$574,675 $0 $0 $0 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Budgeted Expenditures by Type This FY 2025-26, there are no Capital Outlay or other projects expected for this fund.  In the prior FY 2024-25, there were budgeted expenses for a re extinguisher training system for disaster preparedness, SCBA maintenance room storage and security upgrades, and structural personal protective equipment purchase. Budgeted Expenditures vs Historical MillionsCapital Outlay Supplies And Services FY2024FY2025$0 $0.1 $0.2 $0.3 $0.4 $0.5 Expense Objects Supplies And Services $84,879 $441,634 $443,934 $0 -100% Capital Outlay $330,892 $0 $0 $0 0% Transfers $0 $0 $101,956 $0 0% Total Expense Objects:$415,771 $441,634 $545,890 $0 -100% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 170 Fund Balance With no projected revenue or expenditures, Fund balance is projected to remain the same. Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $500K $1M $1.5M $2M $2.5M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $1,735,192 $1,907,638 $1,907,638 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$1,735,192 $1,907,638 $1,907,638 0% Changes and Highlights None. City of South San Francisco | FY2025-26 Budget Book Page 171 Impact Fee - Bicycle and Pedestrian IF Fund (822) This citywide development impact fee program funds bicycle and pedestrian improvements. Development projects generate additional daily trips that place more demands on bicycle and pedestrian infrastructures in the city. Summary As with FY 2024-25, the FY 2025-26 budget includes no revenue or expenditures for this fund. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $5K $10K $15K $20K $25K $30K City of South San Francisco | FY2025-26 Budget Book Page 172 Budgeted Revenues by Source Revenue Source Interest & Rent $9,672 $0 $0 $0 0% Other Revenues $16,550 $0 $0 $0 0% Total Revenue Source:$26,222 $0 $0 $0 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 173 Fund Balance With no projected revenue or expenditures, Fund balance is projected to remain the same. Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $25K $50K $75K $100K $125K $150K $175K Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $91,997 $144,600 $144,600 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$91,997 $144,600 $144,600 0% Changes and Highlights None City of South San Francisco | FY2025-26 Budget Book Page 174 Impact Fee - Commercial Linkage IF Fund (823) The nexus study for this citywide impact fee program was adopted by the City Council in 2018 by Resolution 123-2018. The study justied the need to provide sufcient funding for affordable housing, and established a nexus between the need for affordable housing and the impact of commercial development within the City. The impact fee program supports the City of South San Francisco’s adopted 2023-2031 Housing Element, which includes the goal of promoting the provision of housing by both the private and public sectors for all income groups in the community. Summary In FY 2025-26, the Commercial Linkage Impact Fee is projected to receive $1.50 million, which is $1.50 million higher than the prior scal year. Expenditures are projected to total $0.66 million, which is $0.06 million lower than the prior scal year. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $2M $4M $6M $8M $10M City of South San Francisco | FY2025-26 Budget Book Page 175 Budgeted Revenues by Source As impact fees are notoriously difcult to predict in terms of timing, staff do not historically budget expected impact fee revenue. However, the City has an agreement with a developer which sets a minimum commercial linkage impact fee each year. As a result, $1.5 million is budgeted for FY 2025-26. Budgeted Revenues vs Historical MillionsInterest & Rent Other Revenues FY2024FY2026$0 $2 $4 $6 $8 Revenue Source Interest & Rent $748,607 $0 $0 $0 0% Other Revenues $6,616,930 $0 $0 $1,500,000 N/A Total Revenue Source:$7,365,537 $0 $0 $1,500,000 N/A Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 176 Budgeted Expenditures by Type In FY 2025–26, 24% of the budgeted expenditures in this fund are allocated to salaries and benets for staff in the Economic and Community Development Department, who support the activities this fund nances, which is consistent with FY 2024– 25. Additionally, as with FY 2024-25, $500,000 is budgeted under Supplies and Services for an anti-displacement taskforce, which will assist staff with due diligence related to property acquisition.  Supplies And Services (76%)Supplies And Services (76%)Supplies And Services (76%) Salaries And Benefits (24%)Salaries And Benefits (24%)Salaries And Benefits (24%) Budgeted Expenditures vs Historical MillionsCapital Outlay Salaries And Benefits Supplies And Services FY2024FY2025FY2026$0 $2 $4 $6 $8 $10 Similar to FY 2024-25, in FY 2025-26 there is no Capital Outlay expected or budgeted. City of South San Francisco | FY2025-26 Budget Book Page 177 Expense Objects Salaries And Benefits $701 $213,309 $220,309 $158,075 -25.9% Supplies And Services $1,168,268 $500,000 $1,433,958 $500,000 0% Capital Outlay $6,862,592 $0 $0 $0 0% Total Expense Objects:$8,031,560 $713,309 $1,654,267 $658,075 -7.7% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 178 Fund Balance With a projected higher amount in revenues over expenditures, the fund balance is expected to increase. Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $5M $10M $15M $20M $25M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $20,683,473 $14,039,549 $14,881,474 6% Nonspendable $0 $0 $0 0% Total Fund Balance:$20,683,473 $14,039,549 $14,881,474 6% Changes and Highlights None City of South San Francisco | FY2025-26 Budget Book Page 179 Impact Fee - Library IF Fund (824) This citywide development impact fee program funds new development’s fair share for additional library space and materials to maintain current library service standard. Library Impact Fees for non-residential developments went into effect on November 23, 2020. Library Impact Fees for residential development are effective as of January 1, 2022. Summary As with FY 2024-25, the FY 2025-26 budget includes no revenue or expenditures for this fund. Actual Revenue Source Budgeted Revenue Source FY2024 FY2025 FY2026 $0 $10K $20K $30K $40K $50K City of South San Francisco | FY2025-26 Budget Book Page 180 Budgeted Revenues by Source Revenue Source Interest & Rent $1,268 $0 $0 $0 0% Other Revenues $38,361 $0 $0 $0 0% Total Revenue Source:$39,629 $0 $0 $0 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Fund Balance There are no expected revenues or expenditures for FY 2025-26. With this knowledge, the fund balance is expected to remain the same as prior FY 2024-25. Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $10K $20K $30K $40K $50K $60K Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $41,867 $50,014 $50,014 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$41,867 $50,014 $50,014 0% City of South San Francisco | FY2025-26 Budget Book Page 181 Changes and Highlights None City of South San Francisco | FY2025-26 Budget Book Page 182 Impact Fee - City-wide Transportation IF Fund (825) The nexus study for this impact fee program was adopted by the City Council in 2020. Ordinance 1607-2020 amended the Municipal Code to include Chapter 8.68 establishing the transportation impact fee. The nexus study identied the need for transportation improvements and facilities needed to serve the growth, and the estimated costs of those improvements and facilities. The nexus study has identied $160.8 million in transportation infrastructure improvements such as roads, sidewalks, trafc lights, bicycle lanes and pathways, curbs and gutters, and medians caused by new developments throughout the City. Summary In FY 2025-26, the Citywide Transportation Impact Fee is projected to receive $0, which is unchanged compared to the prior scal year. Expenditures are projected to total $1.20 million, which is lower than the prior scal year. This represents a change of -$1.05 million, or -46.7%. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $2.5M $5M $7.5M $10M $12.5M City of South San Francisco | FY2025-26 Budget Book Page 183 Budgeted Revenues by Source Revenue Source Interest & Rent $445,037 $0 $0 $0 0% Other Revenues $10,057,799 $0 $0 $0 0% Total Revenue Source:$10,502,836 $0 $0 $0 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Budgeted Expenditures by Type There is $1.2 million of expenditure budgeted in FY 2025-26 for this fund for Capital Improvement Projects. Expense Objects Capital Outlay $686,799 $2,250,000 $14,121,131 $1,200,000 -46.7% Total Expense Objects:$686,799 $2,250,000 $14,121,131 $1,200,000 -46.7% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 184 Fund Balance The chart below shows a decline in fund balance since FY 2023-24. Impact fees can be very difcult to predict. If staff are not reasonably certain they will come in during a particular year, they are not included in the budget. As a result, any actual fees received will serve to boost the fund balance; this projection shows a "worst-case" scenario. Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $1M $2M $3M $4M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $3,119,219 $1,765,481 $565,481 -68% Nonspendable $0 $0 $0 0% Total Fund Balance:$3,119,219 $1,765,481 $565,481 -68% City of South San Francisco | FY2025-26 Budget Book Page 185 Changes and Highlights FY25-26 Capital Project Transfers: Amount Project Name Project# $ 300,000 Colma/SSf ECR Bicycle and Pedestrian Improvement tr2415 350,000 Smart Corridor tr2002 100,000 Trafc Studies and Grant Support tr2406 250,000 Miscellaneous Trafc Improvements tr2301 200,000 Junipero Serra Blvd/Westborough Blvd Corridor Feasibility Project st2301 $ 1,200,000 Total City of South San Francisco | FY2025-26 Budget Book Page 186 Impact Fee - Public Arts In-lieu IF Fund (827) In October 2020, the City Council passed ordinance number 1613-2020 creating the public art requirement. The City is dedicated to improving infrastructure, economic development and cultural diversity through acquisition and exhibition of public art. The public art requirement applies to any new non-residential development project. The ordinance requires such projects to contribute public art with a value of at least one percent (1%) the amount of construction costs. In lieu of contributing public art, the public art requirement will allow for the payment of an in-lieu fee into a public art fund at the value of half of one percent (0.5%) of the amount of construction costs. Summary In FY 2025-26, the Public Arts-In-Lieu Fee Fund is projected to receive $0, which is unchanged compared to the prior scal year. Expenditures are projected to total $0.40 million, which is lower than the prior scal year. This represents a change of -$0.09 million, or -47.3%. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $100K $200K $300K $400K $500K $600K City of South San Francisco | FY2025-26 Budget Book Page 187 Budgeted Revenues by Source Revenue Source Interest & Rent $19,579 $0 $0 $0 0% Other Revenues $500,000 $0 $0 $0 0% Total Revenue Source:$519,579 $0 $0 $0 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Budgeted Expenditures by Type In FY 2025-26, $75,000 is budgeted in this fund for the installation of public art sculptures at the Oyster Point IIC Location. Additionally, a $300,000 transfer is included to support the Capital Improvement Project at Linden Park (Project pk2305). The budget also includes funding for two part-time positions totaling 0.4 full-time equivalent (FTE) to support Cultural Arts programming and activities. Expense Objects Salaries And Benefits $0 $0 $0 $21,737 N/A Supplies And Services $0 $63,500 $63,500 $0 -100% Capital Outlay $200,000 $120,000 $120,000 $375,000 212.5% Total Expense Objects:$200,000 $183,500 $183,500 $396,737 116.2% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 188 Fund Balance The chart below shows a decrease in fund balance due to expenditures and zero budgeted revenue. The revenue source for this fund is an in-lieu fee, which is difcult to forecast, so these totals show a "worst-case" scenario. Since there is no operating reserve in this fund, it is appropriate to allocate all reserves. Projections Unassigned Assigned Committed Restricted Nonspendable FY2024 FY2025 FY2026 $0 $100K $200K $300K $400K $500K Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $322,601 $396,737 $0 -100% Nonspendable $0 $0 $0 0% Total Fund Balance:$322,601 $396,737 $0 -100% City of South San Francisco | FY2025-26 Budget Book Page 189 Changes and Highlights FY2025-26 Changes and Highlights Positions:  $ 12,677 Add 0.25 Rec Leader II - Hourly (Cultural Arts Fund) 8,253 Add 0.15 Rec Leader III - Hourly (Cultural Arts Fund) $ 20,929 TOTAL - 0.40 FTE   Supplies and Services: $ 75,000 Art Component for the Oyster Point IIC Location   Capital Improvement Transfer: $ 300,000 pk2305 - Linden Park     City of South San Francisco | FY2025-26 Budget Book Page 190 Impact Fee - Child Care IF Fund (830) The City Council adopted the nexus study for this citywide impact fee program in 2001. The study identied the need for new and expanded childcare facilities in the City. The estimated cost of the new and expanded facilities included in the nexus study totaled $43.9 million. The nexus study identied new development’s share of the cost as 24.6% of the total new and expanded facilities cost. Development impact fee revenue was estimated at $11.3 million, which includes administrative costs of 5% of total fee revenue. Existing development’s share of the cost is $33.1 million (75.4% of new facilities) which must be funded with other funding sources. Summary As with FY 2023-24 and FY 2024-25, the FY 2025-26 Child Care Impact Fees Fund budget includes no revenue. Expenditures are projected to total $3,727, which is unchanged compared to the prior scal year. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $250K $500K $750K $1M $1.25M City of South San Francisco | FY2025-26 Budget Book Page 191 Budgeted Revenues by Source Revenue Source Interest & Rent $604,159 $0 $0 $0 0% Other Revenues $485,015 $0 $0 $0 0% Total Revenue Source:$1,089,174 $0 $0 $0 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Budgeted Expenditures by Type There is a small amount of expenditure budgeted in FY 2025-26 for this fund: $3,727 for interdepartmental charges, in line with prior years. Expense Objects Capital Outlay $36,117 $0 $0 $0 0% Interdepartmental $3,652 $3,727 $3,727 $3,727 0% Total Expense Objects:$39,769 $3,727 $3,727 $3,727 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 192 Fund Balance The chart below shows an increase in fund balance since FY 2023-24 due to the reduction in funding for the projects.  Since impact fees are notoriously difcult to predict in terms of timing, the chart does not reect potential fees received in FY 2025-26.  Projections Unassigned Assigned Committed Nonspendable Restricted FY2024 FY2025 FY2026 $0 $500K $1M $1.5M $2M $2.5M $3M $3.5M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $0 $0 $0 0% Restricted $2,257,569 $3,013,669 $3,009,942 -0.1% Nonspendable $0 $0 $0 0% Total Fund Balance:$2,257,569 $3,013,669 $3,009,942 -0.1% Changes and Highlights None City of South San Francisco | FY2025-26 Budget Book Page 193 Impact Fee - Oyster Point Interchange IF Fund (840) The City Council adopted this plan area fee program on May 23, 1984, using a February 1983 Feasibility Study prepared by Nolte and Associates in conjunction with Resolution No. 71-84 which created the “Oyster Point Contribution Formula.” The 1983 Feasibility Study identied the need for the Oyster Point Interchange project, which was, at that time, referred to as the grade separation project. Summary As with FY 2024-25, the FY 2025-26 budget includes no revenue or expenditures for this fund. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $250K $500K $750K $1M Budgeted Revenues by Source Revenue Source Interest & Rent $19,086 $0 $0 $0 0% Other Revenues $884,195 $0 $0 $0 0% Total Revenue Source:$903,281 $0 $0 $0 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 194 Fund Balance There are no expected revenues or expenditures for this fund in FY 2025-26; therefore, the fund balance is projected to remain unchanged from the prior scal year. Although the fund holds a balance, it is important to note that the Oyster Point Interchange Fee Fund also has an outstanding loan balance of $1,166,152 due to the Successor Agency to the former Redevelopment Agency. Projections Unassigned Assigned Restricted Nonspendable Committed FY2024 FY2025 FY2026 $0 $200K $400K $600K $800K $1M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $0 $0 $0 0% Committed $894,041 $29,702 $29,702 0% Restricted $0 $0 $0 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$894,041 $29,702 $29,702 0% Changes and Highlights None City of South San Francisco | FY2025-26 Budget Book Page 195 Proprietary - Major Funds Enterprise Funds are associated with business type activities, where a fee is charged for a particular service. The funds in the following pages all support business activities operated by the City. The Proprietary fund is further classied into Major and non-Major funds. The Proprietary Major Funds consist of the Sewer Enterprise Fund, the Parking District Fund and the Storm Water Fund.  City of South San Francisco | FY2025-26 Budget Book Page 196 Sewer Enterprise Fund (710) The Sewer Enterprise Fund is used to operate the systems for the Water Quality Control Plant (WQCP), including sewer collection lines and pump stations. This fund also covers sanitary sewer capital projects that upgrade and improve the WQCP. This fund is classied as a Proprietary (Enterprise) Fund, as it is operated similarly to a private-sector business, with activities funded by user charges. Summary In FY 2025-26, the Sewer Enterprise Fund is projected to receive $39.82 million, which is $3.02 million higher than the prior scal year. This represents a change of 8.2%. Expenditures are projected to total $43.78 million, an increase of $24.20 million over the prior scal year. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $10M $20M $30M $40M $50M City of South San Francisco | FY2025-26 Budget Book Page 197 Budgeted Revenues by Source The primary revenue source for the Sewer Enterprise Fund is charges for services, which include sewer service charges to industrial, commercial, and residential customers; discharge permit fees; operations and maintenance (O&M) participation; and Capital Improvement Program reimbursements from partner agencies, including the Cities of San Bruno, Burlingame, and Millbrae, as well as San Francisco International Airport. For FY 2025-26, budgeted revenue from charges for services is slightly higher than the prior scal year. Additionally, the budget includes a $3.4 million transfer from the East of 101 Sewer Impact Fund and $0.3 million from the Successor Agency to support capital project costs. A small amount of investment income is also received from the investment of the City's surplus funds. Budgeted Revenues by Source Charges for Services (90.4%)Charges for Services (90.4%)Charges for Services (90.4%) Transfers (9.3%)Transfers (9.3%)Transfers (9.3%) Interest & Rent (0.3%)Interest & Rent (0.3%)Interest & Rent (0.3%) Budgeted Revenues by Source vs Historical MillionsInterest & Rent Transfers Charges for Services FY2024FY2025FY2026$0 $10 $20 $30 $40 $50 City of South San Francisco | FY2025-26 Budget Book Page 198 Revenue Source Charges for Services $36,754,160 $30,691,329 $39,041,895 $36,013,685 17.3% Interest & Rent $1,049,304 $110,000 $110,000 $110,000 0% Transfers $589,833 $6,000,000 $40,334,016 $3,700,000 -38.3% Total Revenue Source:$38,393,297 $36,801,329 $79,485,910 $39,823,685 8.2% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 199 Budgeted Expenditures by Type For FY 2025-26, the largest expense category in the Sewer Enterprise Fund is Supplies and Services, accounting for 53.3% of total expenditures. Of the $22.8 million budgeted in this category, $9.6 million is allocated for proposed capital projects, while the remaining $13.2 million supports operational expenses. Included in this amount is a one-time cost of $750,000 for cleaning the anaerobic digester and increased ongoing uniform cost request of $64,000. The category also reects an increase in utility costs, which were adjusted at mid-year in FY 2024-25 and carried forward into the new budget. The next largest expense category is Salaries and Benets at 27.4%. Capital Outlay totals $1.1 million for vehicle purchases. Supplies And Services (52.2%)Supplies And Services (52.2%)Supplies And Services (52.2%) Salaries And Benefits (28.1%)Salaries And Benefits (28.1%)Salaries And Benefits (28.1%) Debt Service (12.6%)Debt Service (12.6%)Debt Service (12.6%) Interdepartmental (4.7%)Interdepartmental (4.7%)Interdepartmental (4.7%) Capital Outlay (2.5%)Capital Outlay (2.5%)Capital Outlay (2.5%) City of South San Francisco | FY2025-26 Budget Book Page 200 Budgeted Expenditures by Type vs Historical MillionsCapital Outlay Interdepartmental Debt Service Salaries And Benefits Supplies And Services FY2024FY2025FY2026$0 $10 $20 $30 $40 $50 Expense Objects Salaries And Benefits $12,335,131 $11,963,970 $11,963,970 $12,296,359 2.8% Supplies And Services $10,481,389 $115,981 $46,560,771 $22,836,981 19,590.3% Debt Service $1,121,002 $5,500,770 $5,500,770 $5,500,520 0% Capital Outlay $7,701,705 $0 $1,069,078 $1,100,000 N/A Interdepartmental $2,144,293 $1,990,985 $1,990,985 $2,041,511 2.5% Total Expense Objects:$33,783,520 $19,571,706 $67,085,574 $43,775,371 123.7% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 201 Fund Balance In FY2023-24 the fund was briey negative to support Capital expenditures. In FY2024-25, this fund returned to a healthy balance some of which is used to fund additional capital projects in FY 2025-26. Projections Unassigned Committed Restricted Nonspendable Assigned FY2024 FY2025 FY2026 $-10000000 $-5000000 $0 $5M $10M $15M $20M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $-4,992,107 $16,443,447 $12,491,761 -24% Committed $0 $0 $0 0% Restricted $0 $0 $0 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$-4,992,107 $16,443,447 $12,491,761 -24% City of South San Francisco | FY2025-26 Budget Book Page 202 Changes and Highlights FY2025-26 Changes and Highlights Positions:  $    (889)Upgrade 1.0 FTE Management Analyst II to a Program Manager  49,969 Upgrade 1.0 FTE Management Analyst I to a Management Analyst II $ 49,080 TOTAL   Supplies and Services: Sewer Enterprise Fund $  750,000 Anaerobic Digestor cleaning     64,000 Uniform contract cost increase 1,100,000 Vehicles $1,914,000 TOTAL FY25-26 Capital Projects: Amount Project Name Project# $ 500,000 Sanitary Sewer Pump Station Master Plan ss2603 500,000 Harbor Way Sewer Main Upsize ss2602 2,850,000 Oyster Point Pump Station ss2202 5,800,000 Sanitary Sewer Rehab FY 2025-26 ss2601 $ 9,650,000 Total City of South San Francisco | FY2025-26 Budget Book Page 203 Parking District Fund (720) The Parking District Fund receives its revenue from the collection of parking fees from city-owned parking meters, parking lots, and the sale of parking permits within the South San Francisco Parking District No.1.  Summary The FY2025-26 budget includes $1.0 million of revenue in the Parking District Fund, which represents a $0.1 million increase from the FY 2024-25 adopted budget. Budgeted expenditures are projected to increase by 24.1% in FY 2025-26 to $1.6 million. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $500K $1M $1.5M $2M City of South San Francisco | FY2025-26 Budget Book Page 204 Budgeted Revenues by Source The pie chart and the bar chart below show that nearly all budgeted revenue for FY2025-26 falls within the charges for services revenue category.  More specically, this is revenue from parking fees collected from parking meters and parking lots throughout the City, as well as the sale of parking permits.  A small amount of interest revenue is budgeted to be received in this fund.  This is generated from the investment of the City's surplus funds.  The FY2025-26 budget is higher when compared to the FY2024-25 adopted budget for both charges for services and interest revenue categories. Charges for Services (98%)Charges for Services (98%)Charges for Services (98%) Interest & Rent (2%)Interest & Rent (2%)Interest & Rent (2%) Budgeted Revenue vs Historical MillionsInterest & Rent Charges for Services FY2024FY2025FY2026$0 $0.25 $0.5 $0.75 $1 $1.25 City of South San Francisco | FY2025-26 Budget Book Page 205 Revenue Source Charges for Services $1,027,297 $890,000 $890,000 $980,000 10.1% Interest & Rent $148,171 $10,000 $10,000 $20,000 100% Total Revenue Source:$1,175,468 $900,000 $900,000 $1,000,000 11.1% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Budgeted Expenditures by Type The FY2025-26 budgeted expenditures are higher than those in FY2024-25, primarily due to increases in Salaries and Benets, as well as Supplies and Services. Interdepartmental transfers remain unchanged from the prior scal year. The increase in Supplies and Services is driven by three key factors: higher power washing contract costs, increased utility expenses that were adjusted at the FY2024-25 mid-year review and carried forward into the new budget, and a one-time purchase of License Plate Readers for Parking Enforcement to enhance operational efciency. Supplies And Services (46.8%)Supplies And Services (46.8%)Supplies And Services (46.8%) Salaries And Benefits (42.1%)Salaries And Benefits (42.1%)Salaries And Benefits (42.1%) Interdepartmental (11%)Interdepartmental (11%)Interdepartmental (11%) City of South San Francisco | FY2025-26 Budget Book Page 206 Budgeted Expenditures vs Historical MillionsCapital Outlay Interdepartmental Salaries And Benefits Supplies And Services FY2024FY2025FY2026$0 $0.5 $1 $1.5 $2 Expense Objects Salaries And Benefits $363,959 $554,617 $554,617 $694,147 25.2% Supplies And Services $475,335 $196,292 $407,709 $772,292 293.4% Capital Outlay $251,418 $400,000 $400,000 $0 -100% Interdepartmental $156,012 $159,045 $159,045 $182,086 14.5% Total Expense Objects:$1,246,723 $1,309,954 $1,521,371 $1,648,524 25.8% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 207 Fund Balance The chart below shows an unassigned fund balance of $1.97 million projected at the end of FY 2025-26.  Projections Unassigned Committed Restricted Nonspendable Assigned FY2024 FY2025 FY2026 $0 $500K $1M $1.5M $2M $2.5M $3M $3.5M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $3,003,371 $2,622,105 $1,973,580 -24.7% Committed $0 $0 $0 0% Restricted $0 $0 $0 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$3,003,371 $2,622,105 $1,973,580 -24.7% Changes and Highlights Positions: $51,343   Upgrade 1.0 FTE Management Analyst II to a Program Manager Supplies and Services: $ 75,000  Power Washing Contract Increase 140,000  Licenses Plate Readers for Parking Enforcement $215,000 City of South San Francisco | FY2025-26 Budget Book Page 208 Storm Water Fund (740) The Storm Water Fund is used to comply with the City’s Municipal Regional Permit (MRP) as part of Federal and State regulations regarding water runoff. Summary In FY 2025-26, the Storm Water Fund is projected to receive $1.40 million, which is $0.16 million lower than the prior scal year. This represents a change of 10.3%. Expenditures are projected to total $1.47 million, which is lower than the prior scal year. This represents a change of -$0.96 million, or -39.5%. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $1M $2M $3M $4M $5M City of South San Francisco | FY2025-26 Budget Book Page 209 Budgeted Revenues by Source The costs of complying with the MRP have dramatically increased in the last few years. With the cost of this service continuing to increase, the Gas Tax Fund began to supplement this fund and a few years later, the General Fund began to supplement the Storm Water Fund in addition. This will continue in FY 2025-26. Storm Water fees collected directly from users through the property tax roll are insufcient to cover the cost of operating this fund, hence the need for subsidies. The pie chart below shows that 65.8% of the FY 2025-26 revenue budget of $1.4 million is projected to come from transfers in from other funds. This includes the annual transfers of $0.25 million from the General Fund and $0.67 million from the Gas Tax Fund. $0.47 million in Storm Drain fees are also projected to be received, making up 33.6% of the revenue budget (under the Charges for Services revenue category). Transfers (65.8%)Transfers (65.8%)Transfers (65.8%) Charges for Services (33.6%)Charges for Services (33.6%)Charges for Services (33.6%) Interest & Rent (0.4%)Interest & Rent (0.4%)Interest & Rent (0.4%) Fines & Forfeitures (0.2%)Fines & Forfeitures (0.2%)Fines & Forfeitures (0.2%) The bar chart below shows a signicant decrease in revenue budget in FY 2024-25 when compared to the FY 2023-24 budget, due to the $2 million one-time transfer in from the Infrastructure Reserve fund to cover the cost of the Storm Damage Repair CIP project (sd2401). The FY 2025-26 revenue budget is expected to be slightly lower than the FY 2024-25 budget, with $0.16 less in transfers. City of South San Francisco | FY2025-26 Budget Book Page 210 Budgeted Revenue by Source vs Historical MillionsRevenue From Other Agencies Fines & Forfeitures Interest & Rent Charges for Services Transfers FY2024FY2025FY2026$0 $1 $2 $3 $4 Revenue Source Fines & Forfeitures $1,700 $3,000 $3,000 $3,000 0% Revenue From Other Agencies $525,014 $0 $0 $0 0% Charges for Services $451,722 $469,270 $469,270 $469,270 0% Interest & Rent $116,593 $5,000 $5,000 $5,000 0% Transfers $2,657,131 $1,080,000 $5,230,064 $920,000 -14.8% Total Revenue Source:$3,752,160 $1,557,270 $5,707,334 $1,397,270 -10.3% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 211 Budgeted Expenditures by Type The pie chart below shows that 70.3% of the $1.4 million expenditure budget is earmarked for salaries and benets for employees tasked with carrying out Storm Water Fund related activities. 23.5% is budgeted for supplies and services, and 6.2% for interdepartmental transfers. Salaries And Benefits (70.3%)Salaries And Benefits (70.3%)Salaries And Benefits (70.3%) Supplies And Services (23.5%)Supplies And Services (23.5%)Supplies And Services (23.5%) Interdepartmental (6.2%)Interdepartmental (6.2%)Interdepartmental (6.2%) The bar chart below shows a decrease in projected expenditures in FY 2025-26 compared with the FY 2024-25 adopted budget. This is due to the FY2024-25 Capital Improvement Projects (CIP), of which supplies and services expenses are related to capital outlay. Since there are no CIP's expected to be charged to this fund for FY 2025-26, there is less money budgeted this year when compared to the prior scal year. City of South San Francisco | FY2025-26 Budget Book Page 212 Budgeted Expenditures by Type vs Historical MillionsCapital Outlay Interdepartmental Supplies And Services Salaries And Benefits FY2024FY2025FY2026$-1 $0 $1 $2 $3 $4 $5 Expense Objects Salaries And Benefits $1,223,772 $887,635 $887,635 $1,035,436 16.7% Supplies And Services $3,295,785 $1,489,688 $5,894,550 $345,688 -76.8% Capital Outlay -$445,782 $0 $0 $0 0% Interdepartmental $57,448 $57,899 $57,899 $91,463 58% Total Expense Objects:$4,131,223 $2,435,222 $6,840,084 $1,472,587 -39.5% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 213 Fund Balance Operations within the Storm Water Fund are currently subsidized by both the General Fund and the Garbage Reduction Fund. In recent years, capital project expenditures have outpaced available resources, resulting in a negative fund balance. Moving forward, previously planned capital projects will either need to be postponed and de-appropriated or supported through an increased subsidy from other funds. Staff will continue to evaluate options to stabilize the fund and align future project delivery with available funding. Projections Assigned Unassigned Committed Restricted Nonspendable FY2024 FY2025 FY2026 $-1500000 $-1000000 $-500000 $0 $500K $1M $1.5M $2M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $1,446,408 $-1,221,017 $-1,296,334 6.2% Committed $0 $0 $0 0% Restricted $0 $0 $0 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$1,446,408 $-1,221,017 $-1,296,334 6.2% Changes and Highlights $12,000 increase in uniform expenses. City of South San Francisco | FY2025-26 Budget Book Page 214 Proprietary - non-Major Funds The Proprietary non-Major funds consist of the City Service Fund, Self Insurance Fund, Heath and benet Fund, Equipment Replacement Fund, Information Technology Fund, and PEG Access Fund. City of South San Francisco | FY2025-26 Budget Book Page 215 City Service Fund (781) The City Services Fund is used to pay for in-house vehicle maintenance on City-owned vehicles. The Fleet Maintenance Division of the Public Works Department manages the budget for this fund. The fund receives its revenues by charging departments for the services rendered on an actual invoice basis. In recent years, the Fleet Management Division performed vehicle maintenance work for the Cities of Millbrae and Daly City to further regional consolidation efforts.  Summary In FY 2025-26, the City Service Fund is projected to receive $2.72 million, which is unchanged compared to the prior scal year. Expenditures are projected to total $2.65 million, an increase of $0.03 million, or 1.3%, over the prior scal year. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $1M $2M $3M City of South San Francisco | FY2025-26 Budget Book Page 216 Budgeted Revenues by Source The chart below shows that 100% of the budgeted revenue for FY2025-26 are charges to departments for services rendered by the Fleet Maintenance Division under the Public Works Department for vehicle maintenance.  Budgeted Revenue vs Historical MillionsInterest & Rent Other Revenues FY2024FY2025FY2026$0 $0.5 $1 $1.5 $2 $2.5 $3 Other Revenues represent charges to departments for costs of vehicle maintenance. The projected cost recovery for FY 2025-26 matches the FY 2023-24 Actual and FY 2024-25 Adopted budgets, which align with the cost allocation. Revenue Source Interest & Rent $15,303 $0 $0 $0 0% Other Revenues $2,717,982 $2,717,982 $2,717,982 $2,717,982 0% Total Revenue Source:$2,733,285 $2,717,982 $2,717,982 $2,717,982 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 217 Budgeted Expenditures by Type 41.6% of the FY 2025-26 budgeted expenditures are salaries and benets costs associated with Public Works employees working on activities related to this fund. 56.7% of expenditures within this fund are budgeted to be spent on supplies and services to support that work. Supplies And Services (56.7%)Supplies And Services (56.7%)Supplies And Services (56.7%) Salaries And Benefits (41.7%)Salaries And Benefits (41.7%)Salaries And Benefits (41.7%) Interdepartmental (1.6%)Interdepartmental (1.6%)Interdepartmental (1.6%) Budgeted Expenditures vs Historical MillionsInterdepartmental Salaries And Benefits Supplies And Services FY2024FY2025FY2026$0 $0.5 $1 $1.5 $2 $2.5 $3 City of South San Francisco | FY2025-26 Budget Book Page 218 Expense Objects Salaries And Benefits $679,276 $1,122,743 $1,122,743 $1,105,195 -1.6% Supplies And Services $1,959,253 $1,453,150 $1,453,150 $1,503,650 3.5% Interdepartmental $42,794 $42,794 $42,794 $43,492 1.6% Total Expense Objects:$2,681,323 $2,618,687 $2,618,687 $2,652,337 1.3% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Fund Balance The chart below shows the fund balance for the City Service Fund will improve in FY2025-26. Projections Unassigned Committed Restricted Nonspendable Assigned FY2024 FY2025 FY2026 $0 $100K $200K $300K $400K Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $378,691 $28,605 $94,250 229.5% Committed $0 $0 $0 0% Restricted $0 $0 $0 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$378,691 $28,605 $94,250 229.5% Changes and Highlights $5,500 increase in uniform expenses. $45,000 increase in one time expenditures for essential tools. City of South San Francisco | FY2025-26 Budget Book Page 219 Self Insurance Fund (782) This fund is used to accumulate reserves to pay for workers' compensation claims and general liability insurance claims through the  Pooled Liability Assurance Network  Joint Powers Authority (PLAN JPA). Actuarial studies determine the amount of reserves needed to have an adequate level of condence that the City would be able to fund the maximum amount of claims. The City maintains adequate cash reserves within the fund on an ongoing basis. Summary In FY 2025-26, the Self Insurance Fund is projected to receive $5.30 million, which is unchanged from the prior scal year. Expenditures are projected to total $7.135 million, which is unchanged from the prior scal year. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $2M $4M $6M $8M $10M City of South San Francisco | FY2025-26 Budget Book Page 220 Budgeted Revenues by Source 98.6% of the FY 2025-26 budget revenues in this fund come from other funds in relation to worker' compensation ($4.2 million) and liability insurance charges ($1.02 million). 1.4% is budgeted to be received from interest income derived from City investments which is allocated across the different funds. Other Revenues (98.6%)Other Revenues (98.6%)Other Revenues (98.6%) Interest & Rent (1.4%)Interest & Rent (1.4%)Interest & Rent (1.4%) Revenues in the Self Insurance Fund are collections from departments for payments of general liability insurance premiums, worker' compensation claims and other related expenses.   Budgeted Revenues vs Historical MillionsRevenue From Other Agencies Interest & Rent Other Revenues FY2024FY2025FY2026$0 $2 $4 $6 $8 City of South San Francisco | FY2025-26 Budget Book Page 221 Revenue Source Revenue From Other Agencies $18,271 $0 $0 $0 0% Interest & Rent $755,024 $75,000 $75,000 $75,000 0% Other Revenues $6,755,997 $5,224,950 $5,224,950 $5,224,950 0% Total Revenue Source:$7,529,292 $5,299,950 $5,299,950 $5,299,950 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Budgeted Expenditures by Type The chart and table below show the majority of FY 2025-26 budgeted expenditures are for supplies and services (90.9%), which includes $3.5 million for liability insurance premiums, $2.4 million for workers' compensation claims, and $0.44 million for legal services. The remaining 9.1% of the budget is for salaries and benets-related expenditures, in this case $0.65 million for injury pay.  Supplies And Services (90.9%)Supplies And Services (90.9%)Supplies And Services (90.9%) Salaries And Benefits (9.1%)Salaries And Benefits (9.1%)Salaries And Benefits (9.1%) City of South San Francisco | FY2025-26 Budget Book Page 222 Budgeted Expenditures vs Historical MillionsSalaries And Benefits Supplies And Services FY2024FY2025FY2026$0 $2 $4 $6 $8 $10 Expense Objects Salaries And Benefits $757,995 $650,000 $650,000 $650,000 0% Supplies And Services $6,928,067 $6,485,000 $6,485,000 $6,485,000 0% Total Expense Objects:$7,686,062 $7,135,000 $7,135,000 $7,135,000 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 223 Fund Balance The fund balance of the Self Insurance Fund represents cash reserves maintained by the City to fund worker's compensation, general liability and property damage claims.  The decline in fund balance in FY 2025-26 draws down the reserves due to increased expenditures. Projections Unassigned Committed Restricted Nonspendable Assigned FY2024 FY2025 FY2026 $0 $2.5M $5M $7.5M $10M $12.5M $15M $17.5M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $5,077,224 $15,028,917 $13,193,867 -12.2% Committed $0 $0 $0 0% Restricted $0 $0 $0 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$5,077,224 $15,028,917 $13,193,867 -12.2% Changes and Highlights General Liability Insurance premium is expected to remain at at $3.5 million. Workers Compensation insurance premium is expected to remain at at $2.4 million. City of South San Francisco | FY2025-26 Budget Book Page 224 Benets Fund (783) This fund collects charges from departments and is used to pay benet providers for active and retiree health, dental, vision insurance and other miscellaneous benets. Summary In FY 2025-26, the Benets Fund is projected to receive $22.6 million, which is a signicant increases over the prior year. Expenditures are projected to total $22.1 million, a matching increase. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $5M $10M $15M $20M $25M City of South San Francisco | FY2025-26 Budget Book Page 225 Budgeted Revenues by Source The majority of the FY 2025-26 budget revenues in this fund (98.4%), as shown in the pie chart below, is budgeted to come from "other revenues".  More specically, these are charges to the other funds for accrued employee leave; health, dental and vision charges; and retiree health charges. A small amount of other revenues, almost 2%, is received as a subsidy from the General Fund through a general transfer ($250,000), and interest income ($120,000), which is generated from the investment of the City's surplus funds.  This interest is allocated proportionately across all funds based on the average cash balance. Other Revenues (98.4%)Other Revenues (98.4%)Other Revenues (98.4%) Transfers (1.1%)Transfers (1.1%)Transfers (1.1%) Interest & Rent (0.5%)Interest & Rent (0.5%)Interest & Rent (0.5%) Budgeted Revenues by Source vs Historical MillionsCharges for Services Interest & Rent Transfers Other Revenues FY2024FY2025FY2026$0 $5 $10 $15 $20 $25 City of South San Francisco | FY2025-26 Budget Book Page 226 Revenue Source Charges for Services $1,410,474 $0 $0 $0 0% Interest & Rent $386,379 $120,000 $120,000 $120,000 0% Other Revenues $17,435,078 $15,581,788 $15,581,788 $22,274,000 42.9% Transfers $250,000 $250,000 $250,000 $250,000 0% Total Revenue Source:$19,481,931 $15,951,788 $15,951,788 $22,644,000 42% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Budgeted Expenditures by Type Virtually all expenditures in the FY 2025-26 budget are salaries and benets related. Approximately 90% of these expenses are projected to be paid to vendors for health, dental and vision related services ($15.8 million) and retiree health services ($4.4 million).  Other more minor expenses include vacation and sick pay paid out to employees and Medicare rebates paid to retirees. Budgeted Expenditures vs Historical MillionsSupplies And Services Salaries And Benefits FY2024FY2025FY2026$0 $5 $10 $15 $20 $25 Expense Objects Salaries And Benefits $18,076,084 $15,407,332 $15,407,332 $22,102,000 43.5% Supplies And Services $1,000 $3,000 $3,000 $3,000 0% Total Expense Objects:$18,077,084 $15,410,332 $15,410,332 $22,105,000 43.4% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 227 Fund Balance The departmental charge is sufcient to slightly increase the projected Fund Balance. Projections Unassigned Committed Restricted Nonspendable Assigned FY2024 FY2025 FY2026 $0 $500K $1M $1.5M $2M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $353,320 $1,042,068 $1,581,068 51.7% Committed $0 $0 $0 0% Restricted $0 $0 $0 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$353,320 $1,042,068 $1,581,068 51.7% Changes and Highlights $6.4 million increase in Health, Dental and Vision Charges to Departments (these changes are accounted for in benet increases which have already been budgeted to debts) $5.9 million increase in Health, Dental and Vision payments to Vendors. City of South San Francisco | FY2025-26 Budget Book Page 228 Equipment Replacement (784) The Equipment Replacement Fund is used to accumulate funds for replacement of equipment and vehicles. Departments are charged an annual replacement charge to cover future equipment replacement costs. Summary In FY 2025-26, the Equipment Replacement is projected to receive $2.57 million, which is the same as the prior scal year. Expenditures are projected to total $1.80 million, an increase of $0.34 million, or 23.6%, over the prior scal year. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $1M $2M $3M City of South San Francisco | FY2025-26 Budget Book Page 229 Budgeted Revenues by Source The majority of FY 2025-26 budget revenues in this fund (96.3%) are classied as "Other Revenues", which like the other internal service funds, consist of charges to other City funds, including the General Fund, IT Fund, and Common Greens funds for the replacement of vehicles, equipment and computer hardware.  A small amount of interest income ($95,000) is also budgeted to be received by this fund.   Other Revenues (96.3%)Other Revenues (96.3%)Other Revenues (96.3%) Interest & Rent (3.7%)Interest & Rent (3.7%)Interest & Rent (3.7%) Revenue Source Interest & Rent $329,597 $95,000 $95,000 $95,000 0% Other Revenues $2,474,579 $2,474,579 $2,474,579 $2,474,547 0% Total Revenue Source:$2,804,176 $2,569,579 $2,569,579 $2,569,547 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 230 Budgeted Expenditures by Type The pie chart below shows 81.2% of expenditures in the FY 2025-26 budget are projected for capital outlay, i.e. the purchase of replacement vehicles and capital equipment. 18.8% is categorized under supplies and services for replacement computer equipment, servers, and photocopiers.   Capital Outlay (81.2%)Capital Outlay (81.2%)Capital Outlay (81.2%) Supplies And Services (18.8%)Supplies And Services (18.8%)Supplies And Services (18.8%) For FY 2025-26, expenditures increased over the prior years. Captial Outlay, primarily vehicle purchases, increased to $1.46 million, which remains below the inter-departmental charge for vehicles. Supplies and Services return to the prior year levels, removing the one-time balancing measures and includes $100,000 in computer replacement. City of South San Francisco | FY2025-26 Budget Book Page 231 Budgeted and Historical Expenditures by Type MillionsSupplies And Services Capital Outlay FY2024FY2025FY2026$0 $0.5 $1 $1.5 $2 Expense Objects Supplies And Services $310,871 $120,000 $280,266 $340,000 183.3% Capital Outlay $1,301,337 $1,340,000 $5,811,955 $1,464,000 9.3% Total Expense Objects:$1,612,208 $1,460,000 $6,092,220 $1,804,000 23.6% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 232 Fund Balance The increase in fund balance in FY 2025-26 continues, though at a slower rate then previously. This allows the City to cash purchase large vehicle expenditures, primarily re vehicles while continuing to clear the backlog of vehicles overdue for replacement, and to partially electrify the City's eet.   Projections Unassigned Committed Restricted Nonspendable Assigned FY2024 FY2025 FY2026 $0 $1M $2M $3M $4M $5M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $1,647,711 $3,140,075 $3,905,622 24.4% Committed $0 $0 $0 0% Restricted $0 $0 $0 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$1,647,711 $3,140,075 $3,905,622 24.4% City of South San Francisco | FY2025-26 Budget Book Page 233 Changes and Highlights City of South San Francisco | FY2025-26 Budget Book Page 234 Information Technology (785) The Information Technology (IT) Fund is funded through an allocation charge to departments for the maintenance and upkeep of the City’s computers, telephones, servers, copiers, scanners, Citywide software, etc. The Information Technology Department manages this fund. In addition to in-house IT services, the IT Department provides services to the Town of Hillsborough to further regional consolidation efforts.  Summary In FY 2025-26, the Information Technology is projected to receive $4.72 million, which is $0.77 million higher than the prior scal year. This represents a change of 19.6%. Expenditures are projected to total $4.71 million, an increase of $0.43 million, or 10.2%, over the prior scal year. Actual Revenue Source Budgeted Revenue Source Actual Expenditures Budgeted Expenditures FY2024 FY2025 FY2026 $0 $1M $2M $3M $4M $5M City of South San Francisco | FY2025-26 Budget Book Page 235 Budgeted Revenues by Source The pie chart below shows that in the FY 2025–26 budget, the majority of revenue in the Information Technology (IT) Fund is projected to come from "Other Revenues" - that is, charges to other City funds that receive regular services from the IT Department. A small amount of interest income is also budgeted, which is generated from the investment of the City's surplus cash balance and allocated across all City funds. Other Revenues (99.6%)Other Revenues (99.6%)Other Revenues (99.6%) Interest & Rent (0.4%)Interest & Rent (0.4%)Interest & Rent (0.4%) Revenue Source Revenue From Other Agencies $149,122 $0 $0 $0 0% Interest & Rent $111,069 $20,000 $20,000 $20,000 0% Other Revenues $3,925,248 $3,925,249 $3,925,249 $4,699,575 19.7% Total Revenue Source:$4,185,439 $3,945,249 $3,945,249 $4,719,575 19.6% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 236 Budgeted Expenditures by Type The pie chart below shows that 50.9% of the IT Fund FY 2025-26 expenditure budget is projected to be spent on salaries and benets. There is an increase of 7.5% to $2.4 million, due to the removal of prior year freezes and the budget cost of living increase of 3%. The remaining budget will be spent on supplies and services for Citywide Information Technology contracts and equipment. Supplies and services are budgeted to increase by 13.1% compared to the prior year's adopted budget, mainly the removal of prior year balancing measures, software cost increases, as well as onetime costs associated with a phone system conversion. Salaries And Benefits (50.9%)Salaries And Benefits (50.9%)Salaries And Benefits (50.9%)Supplies And Services (48.8%)Supplies And Services (48.8%)Supplies And Services (48.8%) Interdepartmental (0.3%)Interdepartmental (0.3%)Interdepartmental (0.3%) Budgeted Expenditures vs Historical MillionsInterdepartmental Supplies And Services Salaries And Benefits FY2024FY2025FY2026$0 $1 $2 $3 $4 $5 City of South San Francisco | FY2025-26 Budget Book Page 237 Expense Objects Salaries And Benefits $2,018,253 $2,230,447 $2,270,447 $2,398,765 7.5% Supplies And Services $2,117,217 $2,030,490 $2,306,879 $2,296,824 13.1% Interdepartmental $12,889 $12,889 $12,889 $12,889 0% Total Expense Objects:$4,148,359 $4,273,826 $4,590,215 $4,708,478 10.2% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Fund Balance There is a slight increase in fund balance due to expenditures matching the interdepartmental charges. There is no operating reserve for this fund but in future years the interdepartmental charge will need to be increased to support expenses should the fund balance trend closer to zero. Projections Unassigned Committed Restricted Nonspendable Assigned FY2024 FY2025 FY2026 $0 $250K $500K $750K $1M $1.25M $1.5M $1.75M Financial Summary FY2024 FY2025 FY2026 % Change Fund Balance ——— Unassigned $0 $0 $0 0% Assigned $1,370,483 $1,496,534 $1,507,631 0.7% Committed $0 $0 $0 0% Restricted $0 $0 $0 0% Nonspendable $0 $0 $0 0% Total Fund Balance:$1,370,483 $1,496,534 $1,507,631 0.7% City of South San Francisco | FY2025-26 Budget Book Page 238 Changes and Highlights FY2025-26 Changes and Highlights Positions:  None     Supplies and Services: $ 124,334 Phone Service Update  142,000 Software Cost Increase $  166,334 TOTAL City of South San Francisco | FY2025-26 Budget Book Page 239 DEPARTMENTS City of South San Francisco | FY2025-26 Budget Book Page 240 Departments Overview BUDGETED CITY DEPARTMENTS The City of South San Francisco is organized into eight administrative departments and six operating departments with one non-departmental classication used for miscellaneous charges that cannot be attributed to a specic department. Each department is summarized individually in the following pages. Below is a list of departments within the City: General Government Departments City Council – accounts for elected City Council members stipends and expenses related to ofcial City functions. Administrative support is provided by the City Manager’s Ofce. City Clerk – administers City elections, is responsible for recording public meetings, maintaining ofcial City records, and publishing ofcial public meeting agendas. The City Clerk is an elected ofcial. City Treasurer – responsible for the investment of City funds. Administrative support is provided by the Finance Department. The City Treasurer is an elected ofcial. City Attorney - deals with all legal matters as they relate to City functions. The City Council has appointed the law rm Redwood Public Law to provide attorney services for the City. City Manager – responsible for the implementation of City Council direction and community outreach. Finance – accounts for the City’s nances, prepares the budget, processes payroll, pays vendors, and administers risk management. It also les all state and federally mandated nancial reports, manages the City’s banking contracts, and provides administrative support to the City Treasurer. Human Resources (HR) – responsible for the recruitment and support of employees, maintenance of benets, succession development, employee training, and labor negotiations. Information Technology (IT) – in charge of acquiring and maintaining the City's IT infrastructure. Operating Departments Economic and Community Development – oversees planning and building functions, the Successor Agency to the Re- Development Agency (RDA), and general issues relating to economic development and community support within the City. Fire - responsible for the protection of life and property in the event of an emergency within the City. Police – responsible for public safety to support quality of life within the City. Library – provides access to materials such as books, magazines, DVDs, as well as programs and services to meet the informational and educational needs of the City. Public Works – maintains City infrastructure, the Water Quality Control Plant, and the City’s eet of vehicles and large equipment, and oversees the Parking District. Manages the Capital Improvement Program, Trafc Advisory Committee, Right of Way, and Environmental Inspections. Parks and Recreation – provides for the physical, cultural, and emotional well-being of the City, ensures the effective and safe use of the physical resources of the City, and maintains City facilities and parks. City of South San Francisco | FY2025-26 Budget Book Page 241 City Council MISSION STATEMENT: The South San Francisco City Council serves as the City's governing body, responsible for setting local policies, enacting ordinances and resolutions, and approving the City’s annual budget. The Council provides strategic direction to ensure the effective and equitable delivery of municipal services and collaborates closely with the City Manager and City staff to implement initiatives that align with community priorities. ELECTIONS: The South San Francisco City Council is comprised of ve members, each elected by district to represent one of the City’s ve geographic areas. Council elections are held in even-numbered years, with three members elected during one election cycle and the remaining two elected in the following cycle. Each Councilmember serves a four-year term. In non-election years, the Council selects one of its members to serve as Mayor and another to serve as Vice Mayor. The Mayor presides over City Council meetings, represents the City at ofcial and ceremonial functions, and acts as the primary spokesperson for the City. City Council meetings are typically held on the second and fourth Wednesdays of each month and are open to the public. Community participation is strongly encouraged as the Council values input from residents, businesses, and stakeholders in shaping the future of South San Francisco. District Name Title Term Election Year District 5 Eddie Flores Mayor 4-year term November 2026 District 1 Mark Addiego Vice Mayor 4-year term November 2026 District 3 Buenaor Nicolas Councilmember 4-year term November 2026 District 2 Mark Nagales Councilmember 4-year term November 2028 District 4 James Coleman Councilmember 4-year term November 2028 CITY COUNCIL RESPONSIBILITIES: Serve as the governing body of the City of South San Francisco Establish local policies through the adoption of ordinances and resolutions Approve the City’s annual budget and oversee long-term nancial planning Appoint members to all municipal advisory bodies, commissions, and committees Represent the City on regional and county boards and committees, such as the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC), that inuence policy affecting South San Francisco City of South San Francisco | FY2025-26 Budget Book Page 242 Serve as the Board of Directors for the Successor Agency to the former Redevelopment Agency, which provides oversight for the dissolution and ongoing management of redevelopment obligations Provide policy direction to the City Manager and work in collaboration with City staff to implement Council initiatives Promote scal responsibility, sustainability, equity, and innovation in public service Ensure transparent governance and encouraging active community engagement Strive to enhance quality of life and support a safe, inclusive, and resilient city for all residents ACCOMPLISHMENT/INITIATIVE HIGHLIGHTS IN FISCAL YEAR 2024-25: Passed Measure W (Business License Tax) Completed Racial and Social Equity Plan goals Established Age-Friendly Task Force Established Anti-Displacement Advisory Committee Adopted SRO and Mobile Home Tenant Protection Ordinances (emergency and permanent) Adopted Ordinance prohibiting retail sales of polystyrene, Styrofoam, and single use plastics, expanding previously adopted restrictions on their use in restaurants Adopted County Smoking Ordinance by reference, bringing regulations into compliance with State law Passed Wage Theft Ordinance Expanded South City Free Shuttle services Started Linden Park Community engagement Kicked off the Property Business Improvement District Process Completed the State Housing Element timely COUNCIL PRIORITIES: Housing and Supportive Services Pursue creative nancing strategies for housing Encourage balanced housing supply, including rent & own, workforce Quality of Life Support a sustainable retail environment Modern and Sustainable Organization Ensure nancial sustainability, pursue creative revenue generation Welcoming and Connected Community Engage community volunteers for events through commissions and partners Infrastructure and the Environment City of South San Francisco | FY2025-26 Budget Book Page 243 Organizational Chart City of South San Francisco | FY2025-26 Budget Book Page 244 Expenditures Summary 255,018 -$43,341 (-14.53% vs. prior year) City Council Proposed and Historical Budget vs. Actual Actual Budgeted FY2024 FY2025 FY2026 $0 $50K $100K $150K $200K $250K $300K $350K City of South San Francisco | FY2025-26 Budget Book Page 245 Expenditures by Type Salaries And Benefits (71.2%)Salaries And Benefits (71.2%)Salaries And Benefits (71.2%) Supplies And Services (24.1%)Supplies And Services (24.1%)Supplies And Services (24.1%) Interdepartmental (4.7%)Interdepartmental (4.7%)Interdepartmental (4.7%) Budgeted vs. Historical Expenditures by Type MillionsInterdepartmental Supplies And Services Salaries And Benefits FY2024FY2025FY2026$0 $0.05 $0.1 $0.15 $0.2 $0.25 $0.3 $0.35 Expense Objects Salaries And Benefits $205,640 $192,900 $192,900 $181,476 -5.9% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 246 Supplies And Services $51,876 $61,560 $61,560 $61,560 0% Interdepartmental $43,900 $43,900 $43,900 $11,982 -72.7% Total Expense Objects:$301,415 $298,359 $298,359 $255,018 -14.5% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 247 Positions Summary FY 2025-26 Changes and Highlights Positions: None Supplies and Services: None FY 2024-25 Changes and Highlights Positions: $12,000 Elected Salary change effective 12/2024 City of South San Francisco | FY2025-26 Budget Book Page 248 City Treasurer Frank Risso City Treasurer MISSION STATEMENT: The South San Francisco City Treasurer is an elected ofcial responsible for overseeing and safeguarding the City’s nancial assets. The Treasurer’s primary objective is to invest funds that are not immediately needed for City operations in a manner that maximizes returns while ensuring the safety and liquidity of public funds. As the custodian of these funds, the City Treasurer ensures that all funds invested are in compliance with State law and the City’s investment policy. Through prudent cash management and investment practices, the Treasurer plays a critical role in maintaining the City’s scal integrity. ELECTIONS: The City Treasurer is an elected position with a four-year term. Elections are held every four years, with the next City Treasurer election scheduled for November 2026. As an elected ofcial, the Treasurer is directly accountable to the residents of South San Francisco, ensuring transparency and public trust in the management of the City’s nancial assets. RESPONSIBILITIES: Invest City surplus funds to maximize returns while prioritizing safety and liquidity Prepare and present quarterly reports detailing the amounts and types of investment instruments held Oversee the City’s managed investment portfolio to ensure the security, liquidity, and optimal yield of public funds Provide regular reports on investment performance to the City Council Ensure compliance with all applicable laws, regulations, and City policies governing public funds ACCOMPLISHMENT/INITIATIVE HIGHLIGHTS IN FISCAL YEAR 2024-25: Attended regular meetings with investment advisors to ensure investments are in full compliances with City’s investment policy Submitted quarterly investment reports to Council Reviewed and updated investment policy annually OBJECTIVES FOR FISCAL YEAR 2025-26: Update investment policy annually Oversee the City’s managed investment portfolio Report to Council quarterly on investment performance Expenditures Summary 220,835 $46,537 (26.70% vs. prior year) City of South San Francisco | FY2025-26 Budget Book Page 249 Expenditures by Type Budgeted vs. Historical Expenditures by Type MillionsInterdepartmental Salaries And Benefits Supplies And Services FY2024FY2025FY2026$0 $0.05 $0.1 $0.15 $0.2 $0.25 Expense Objects Salaries And Benefits $34,096 $34,100 $34,100 $80,637 136.5% Supplies And Services $136,585 $140,060 $140,060 $140,060 0% Interdepartmental $138 $138 $138 $138 0% Total Expense Objects:$170,819 $174,298 $174,298 $220,835 26.7% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) Positions Summary City of South San Francisco | FY2025-26 Budget Book Page 250 Highlights and Changes FY 2025-26 Changes and Highlights Positions: None Increase in salary and benets cost due to benet selection changes. Supplies and Services: None FY 2024-25 Changes and Highlights Positions: None City of South San Francisco | FY2025-26 Budget Book Page 251 City Clerk Rosa Govea Acosta City Clerk MISSION STATEMENT: The City Clerk serves the public and City Departments through the administration of legislative processes, fair and impartial local municipal elections, records and maintains the legislative process of all open meetings of the City Council, and ensures transparent government processes and records management. The City Clerk serves as a steward of the democratic process and is a liaison between the City Council and members of the public. The City Clerk is an elected representative of the people and serves a four-year term with legal responsibilities described in California Government Code Sections 40800, et seq., the Elections Code, and City ordinance. The City Clerk ensures all council actions comply with federal, state, and local statutes, including the Political Reform Act, the Brown Act, and the Public Records Act. Further, as Clerk of the Council and Successor Agency, the City Clerk maintains legislative materials for these legislative bodies. The Clerk serves as the archivist of City records and maintains custody of the City seal. The City Clerk and staff strive to meet these duties efciently, courteously, neutrally, and in a manner that is above all else in the best interests of the residents of South San Francisco. THE DEPARTMENT SUPPORTS ITS MISSION TO THE CITY THROUGH: Performing all legislative duties for the legislative bodies of the City Council, South San Francisco Successor Agency to the former Redevelopment Agency and its fourteen (14) Standing Committees pursuant to state and local government requirements, including: (1) Preparing and distributing agendas and meeting packets; (2) Recording Council legislative actions and proceedings (3) Recording of Council legislative actions and proceedings in meetings, minutes, resolutions, and ordinances (4) Publishing legal notices pursuant to State law (5) Attesting contracts, agreements, and other ofcial documents approved by the City Council, City Manager, and City Attorney. Noticing public meetings for the City Council and advisory bodies pursuant to the Ralph M. Brown Act. Managing the Citywide Records Management Program (paper and electronic) for all permanent and historical records to ensure public access to records pursuant to the Public Records Act. Conducting recruitment and facilitating the appointment of the Council’s appointed bodies, maintaining records, and maintaining policies and procedures pursuant to the Government Code. Serving as the City’s Election Ofcial and, in compliance with the California Elections Code, administer all municipal elections and perform oaths of ofce for elected and appointed ofcials. Serving as the Local Filing Ofcer for the Fair Political Practices Commission (FPPC) for all campaign disclosure reports for all local candidates and campaign committees. Serving as the Local Filing Ofcer for Fair Political Practices Commission (FPPC) Statements of Economic Interest (Form 700) for designated lers. Maintaining and updating the City’s Conict-of-Interest Code. City of South San Francisco | FY2025-26 Budget Book Page 252 Maintaining annual updates of the Local Appointments List (Maddy Act). Processing and overseeing the timely response of subpoenas and summons for all city-related matters. Ensuring codication of ordinances and overseeing supplemental updates to the South San Francisco Municipal Code. Updating the department website with critical information to increase accessibility. Manage and administer passport services as a Passport Acceptance Agency. Serve as Department Head, managing staff, day-to-day operations, and departmental budget. Representing the City at Public Events. ACCOMPLISHMENT/INITIATIVE HIGHLIGHTS IN FISCAL YEAR 2024-25: Provided accurate and timely minutes for fty-seven (57) Council proceedings. Responded to 697 Public Records requests as required under the California Public Records Act. Processed 455 passport applications and met requirements as set by the U.S. Department of State to continue serving as a Passport Acceptance Facility. Assistant City Clerk obtained her Certied Municipal Clerk (CMC) designation from the International Institute of Municipal Clerks in October 2024. Conducted the consolidated 2024 General Municipal Election for a local ballot measure and Councilmember seats in Districts 2 and 4. Conducted the 2024 biennial review and update of the Conict-of-Interest Code. Conducted recruitment and appointments for multiple positions on the City’s advisory boards, commissions, and committees. Managed the electronic ling of mandated ethics training (AB1234) for elected ofcials, advisory body members, and designated lers. Ensured timely ling of Statements of Economic Interest (Form 700) and Campaign Statements (Form 460). Continued to oversee and coordinate the placement of the City’s inactive records at a secure records storage facility to achieve security, safety, and efciency-related goals. OBJECTIVES FOR FISCAL YEAR 2025-26: Develop and implement the City’s Records Management Program Policy. Update the City’s Records Retention schedule in line with the statewide movement towards electronic availability of records. Assist departments with conversion of physical records to electronic form. Continue to organize and streamline processes of the City Clerk’s ofce. Continue to provide support to City Council, internal departments, and members of the public. Enhance the use of social media to increase civic engagement and identify and grow community partners. Provide training to new employees and implement quarterly training for Legistar (Agenda Management), GovQA (Public Records Act Request), and Laserche (Records Management) users. Implement increased security measures for Corodata by restructuring services by department to enhance the le security. Implement searchable archive in the City’s Public Records Request portal for public view. Continue to attend trainings provided by the International Institute of Municipal Clerks, City Clerks Association of California, and League of California Cities. Update and adopt the City Council Procedures and Protocols Handbook. BUDGET HIGHLIGHTS FOR FISCAL YEAR 2025-26: $10,000 - Staff training and professional development to obtain designations for Deputy City Clerk as Certied Municipal Clerk (CMC); Assistant City Clerk as Master Municipal Clerk (MMC) and Notary Public certications for multiple positions. $5,000 – Yearly maintenance cost of eScribe, Board Manager. $10,000 - Yearly maintenance cost of GovQA, the City’s Automated Public Records Act program. City of South San Francisco | FY2025-26 Budget Book Page 253 $10,000 - Yearly maintenance cost of Legistar (Granicus), the City’s Automated Agenda Management System. $8,000 - Yearly maintenance of Granicus DisclosureDocs, the City’s electronic nancial disclosure software for Fair Political Practices Commission forms and Ethics Training (AB1234). Organizational Chart Key Performance Measures City of South San Francisco | FY2025-26 Budget Book Page 254 Expenditures Summary 1,366,494 $84 ,663 (6.60% vs. prior year) Expenditures by Type Budgeted vs. Historical Expenditures by Type MillionsInterdepartmental Supplies And Services Salaries And Benefits FY2024FY2025FY2026$0 $0.25 $0.5 $0.75 $1 $1.25 $1.5 Expense Objects Salaries And Benefits $809,649 $988,806 $988,806 $1,090,121 10.2% Supplies And Services $107,799 $237,743 $316,743 $208,428 -12.3% Interdepartmental $55,282 $55,282 $55,282 $67,945 22.9% Total Expense Objects:$972,730 $1,281,831 $1,360,831 $1,366,494 6.6% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 255 Positions Summary Highlights and changes FY 2025-26 Changes and Highlights Positions: None Supplies and Services: None, increase in expenses due to removal of one-time budget balancing measures from prior year. FY 2024-25 Changes and Highlights Positions: None City of South San Francisco | FY2025-26 Budget Book Page 256 City Attorney Sky Woodruff City Attorney MISSION STATEMENT: The City Attorney is directly appointed by the City Council. The City Attorney represents and advises the City Council, Boards and Commissions, and ofcers and employees of the City in all matters of law pertaining to their respective ofces and ofcial activities. The City Attorney prepares all proposed ordinances, resolutions and amendments, prepares or approves the form of all other legal documents and represents the City in litigation to which the City is a party. The City Attorney, whose services are retained by the City through a contract relationship, is responsible for the following services: Providing legal advice and information to the Council and staff; Preparing legislation and legal documents; Reviewing contracts, leases and agreements; Providing legal defense and advice to the City in a manner that minimizes City liability and exposure; Providing legal advice to the City Council, City Manager, Departments, Boards and Commissions; Supporting staff in enforcing community standards and codes fairly; and Managing the City’s litigation. ACCOMPLISHMENT/INITIATIVE HIGHLIGHTS IN FISCAL YEAR 2024-25: Legislative Actions Drafted or worked with staff on drafting the following ordinances and assisted staff in processing them for adoption: Municipal Code amendment to implement additional regulations and programs related to solid waste and recycling under SB 1383. Adoption of a Reach Code for commercial developments and analyzed issues related to case law developments on natural gas bans. Developed a draft Municipal Code amendment to the Trees and Sidewalks regulations for abutting property owners, to be presented to Council for consideration. Adoption of Ordinance related to restrictions on the use of city property. Adoption of Zoning Code updates to implement Housing Element programs and conform with new state housing law updates. Adoption of mooring regulations to provide regulations for moorings in City’s navigable waterways. Developed draft regulations of campaign signs and campaigning inside residential rental property. Introduction of Ordinance to amend City’s Tobacco Ordinance to adopt County’s Tobacco Retailer Permit Ordinance by reference and repeal any related outdated portions of City’s Municipal Code. Worked with staff on ordinances for relocation benets for residents of SROs and mobile home parks. Assisted with adoption of ordinance updating animal control regulations. Drafted ordinance to implement Council compensation increase. Worked with staff on development of ordinance prohibiting sale of polystyrene products. Collaborated with staff on the development and drafting of an ordinance to prohibit nal building permits for contractors with outstanding wage theft charges. Assisted City staff with completion and implementation of the General Plan update, CEQA analysis, and related Zoning Code/Climate Action Plan update, and the processing of new development projects affected by the update. City of South San Francisco | FY2025-26 Budget Book Page 257 Assisted City staff with implementation of housing and zoning ordinance update programs in the 2023- 2031 Housing Element. Assisted City staff with processing and consideration of development projects pursuant to newly adopted Lindenville Specic Plan. Assisted City staff with proposed Orange Memorial Park and Centennial Trail Master Plan review and approval issues. Collaborated with staff to assess options for updating the Business License Tax; assisted with drafting ordinance to update BLT;and prepared materials related to the election on the measure. Oyster Point Development Project The City Attorney's Ofce continued to assist with the Oyster Point Development Project, including: Oversight Board approval of FY 23-24 and 24-25 ROPS of the Successor Agency, including funding for the Successor Agency’s obligations for preparation of the open space parcel; Encroachment and Maintenance Agreements and related easements/access agreements for Phases ID – IVD; and The Oyster Point Sanitary Sewer Pump Station Relocation project. Economic Development and Planning Worked closely with the Economic Development and Planning Divisions to negotiate and prepare development project applications for approval, including preparing environmental documentation, drafting exclusive negotiating rights agreements (ENRA), development agreements, purchase and sale agreements, and processing entitlements. The following list is a sampling of some of the projects that we assisted with: Worked with staff on issues related to potential development of the Firehouse Live/Work Project at Baden Avenue; Surplus Land Act compliance and related purchase and sale agreement matters regarding proposed hotel development at Oyster Point with Ensemble Investments; Negotiate and draft terms for a Development Agreement at 800 Dubuque Ave; Coordinate with Planning and Public Safety staff regarding necessary public access easements for 40 Airport Blvd housing development project; Negotiate and draft terms for a Development Agreement at 175 Sylvester and 100 E. Grand. Continued to collaborate with staff on potential retention of 616 and 700 Linden Avenue for development of parks in the Oldtown area, including assisting with appraisal, environmental review, and presentation of proposal to Countywide Oversight Board. Assisted City staff with the PUC site development delays, grant applications, and additional property acquisitions for related roadway projects. Assisted with the acquisition process for County Chapter 8 sale of property. Advised staff regarding multiple housing and development issues. Assisted with review and processing of City’s rst AB 2011 project at 500/520 Linden Ave. Assisted City with negotiation and drafting of MOU with San Mateo County for Ramada Inn Homekey project. Continue to assist City with various follow up agreement drafting and execution issues for the Southline development project. Continue to assist City with negotiation of In-N-Out project and CEQA review for project at 932 and 972 El Camino Real. Continue to assist City with review of billboard project at 1 Oyster Point. Continue to assist City with matters related to Amazon Parcel Hub project at 1000 San Mateo Avenue. Reviewed and advised on CEQA documents for applicant projects, including but not limited to: 101 Utah Avenue Mixed Use Project Gateway (Railroad Avenue) Townhouse Project Boys and Girls Club in Orange Park Project, including ground lease negotiations with City Manqger’s Ofce1341 San Mateo Avenue Project 360 Alta Vista Subdivision Project City of South San Francisco | FY2025-26 Budget Book Page 258 Continue to advise City on PUC Housing project for market rate and affordable housing, including IIG grant matters. Advised staff regarding determination and appeal hearing for enforcement of the City’s Tenant Relocation Payment Ordinance for tenants displaced due to substandard housing at 432 Railroad Avenue. Worked with staff on multiple potential land acquisition opportunities, including negotiating strategy and legal compliance issues. Information and Technology Assisted staff with continued efforts to promote expansion of telecommunications technology in the City and enforcing the City's current telecommunications regulations, including the following: Advice regarding ber conduit installation issues as a part of Open Trench negotiations with Intermountain, Inc. at West Orange Ave. and related SFPUC property rights issue; Assisted with contracting for the community wi- program Assisted with negotiation and drafting of lease agreement with AT&T for telecommunication facility at the Miller Ave. Garage rooftop space. Assisted with review of various open trench, colocation, and ber optic deployment issues with various telecommunication providers. Assisted with the review and negotiation of various technology procurement and Saas agreements. Public Works and Contracting Assisted staff with the provision of certain public services and other public works projects, including the following: Procurement for design services, approval of design approaches, and CEQA evaluation for the Orange Memorial Park Swim Center Project; Advice regarding services and construction for the Orange Memorial Park Sports Field Project. Assist with various efforts to partner with state and regional agencies for cooperative projects such as Smart Corridor and Colma Creek Flood Channel maintenance projects. Managed litigation against PG&E and MGE related to storm drain damage resulting in a successful settlement for the City. Assist staff with agreement drafting and implementation of the South City Shuttle Program including vendor procurement and negotiation with the Town of Colma. Assist staff with negotiation and implementation of various cooperative arrangements with neighboring jurisdictions for street paving/maintenance and similar public works projects. Advised staff regarding issues related to changes to the Caltrain grade separation project. City Procurements Establish streamlined contract review and approval process to shorten review timing and promote efciency. Prepare updates to the City’s contract templates and related procurement documents. Review various procurement options for professional services and advise on potential options. Code Enforcement Advised staff on matters related to enforcement of the City’s Tenant Relocation Payment Ordinance for tenants displaced due to substandard housing. Advised staff on the enforcement of the City’s Solid Waste Ordinance related to businesses unlawfully collecting and hauling waste in the City. Assisted staff regarding enforcement of the City’s ban on the sale of avored tobacco. Assisted staff regarding enforcement of the City’s sale of cannabis ordinance. Worked with the City Manager’s Ofce and Code Enforcement on legislative updates and implementation plan for marine debris and abandoned vessels. Implemented cross-departmental problem properties regular meetings. City of South San Francisco | FY2025-26 Budget Book Page 259 Miscellaneous-Additional City Operations Worked with multiple departments on updates to development impact and other fees in light of new case law. Represented the City in litigation matters handled by the City Attorney’s Ofce. Managed and oversaw outside counsel in the defense of litigation against the City. Provided citywide staff and commission trainings on the Brown Act, AB 1234, and sexual harassment prevention. Assisted the City Clerk’s Ofce and other departments with issues related to the approximately 625 public records request received since July 1, 2024, including direct review of at least 275 requests. Provided Planning Commission, Measure W, Parking Place, and other City commissions trainings on the Brown Act and Commission Roles and Responsibilities. Provided support to Police Department through the prosecution of Municipal Code violations, abatement of deadly weapons through court proceedings, protection of condential police records, including responding to public records requests pursuant to SB 1421 (2018), subpoena and Public Records Act responses. Provided support to Police Department through the pursuit of Gun Violence Restraining Orders and Weapons Conscation Petitions. Provided support to Police Department through the opposition of Pitchess Motions. Provided support and guidance to staff navigating clean-up of homeless encampments and RV parking matters. Provided continuing support and advice to the South San Francisco Conference Center Authority. OBJECTIVES FOR FISCAL YEAR 2025-26: Continue to assist City Council with downtown and business development initiatives. Assist the City with implementing Housing Element programs and navigate new housing law updates. Provide in-depth training on legal topics and requirements to staff and Boards and Commissions. Continue to assist City staff with implementation of the Long Range Property Management Plan and the disposition of Successor Agency properties. Continue to assist City staff with the delivery of the Civic Campus project and the implementation of other Measure W initiatives. Continue to assist Staff with issues relating to Housing Element implementation, compliance, and navigation of state law/HCD Guidance. Continue to assist Staff with implementation of objective design review criteria and compliance with SB 35, SB 330, SB 9 and Housing Accountability Act, as well as with anticipated initiatives to develop options for encouraging development of affordable housing. Continue to assist Staff with review and process of streamlined housing development projects including but not limited to AB 2011 an state density bonus projects. Continue to assist City with implementation of ordinances implementing new programs listed above. Assist City staff with implementation of new General Plan and updated Zoning Ordinance. Assist City staff with updates to internal city policies and provide training on implementation. Continue to assist City staff with the preparation, negotiation, environmental review and entitlement process for residential and commercial development projects. Continue to assist City staff with the preparation, drafting and adoption of new ordinances. Continue to assist City staff with management of increasing inux of PRA requests. Continue to assist Police Department with Police Litigation matters. BUDGET HIGHLIGHTS FOR FISCAL YEAR 2025-26: The General Fund budget for FY 2025-26 has been adjusted to reect actual work levels. City of South San Francisco | FY2025-26 Budget Book Page 260 Organizational Chart City of South San Francisco | FY2025-26 Budget Book Page 261 Expenditures Summary 1,517,7 11 $58,886 (4.04% vs. prior year) Expenditures by Type Budgeted vs. Historical Expenditures by Type MillionsInterdepartmental Supplies And Services FY2024FY2025FY2026$0 $0.5 $1 $1.5 $2 Expense Objects Supplies And Services $1,711,048 $1,450,717 $2,250,717 $1,515,717 4.5% Interdepartmental $8,108 $8,108 $8,108 $1,994 -75.4% Total Expense Objects:$1,719,156 $1,458,825 $2,258,825 $1,517,711 4% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 262 Changes and Highlights FY 2025-26 Changes and Highlights Positions: None Supplies and Services: $ 65,000 Contract Increase FY 2024-25 Changes and Highlights Positions: None City of South San Francisco | FY2025-26 Budget Book Page 263 City Manager Sharon Ranals City Manager MISSION STATEMENT: The daily business of City operations is the responsibility of the City Manager, the Chief Executive Ofcer of the municipal corporation. The City Manager’s Ofce implements policy decisions of the City Council, provides leadership and strategic direction to the City’s department head team and organization as well as ensuring that initiatives and programs align with the City’s General Plan and reect the values of our community. The City Manager’s Ofce provides overall guidance to all City operating departments and is responsible for the administration of City programs to ensure the delivery of high-quality services in an efcient and cost-effective manner. This includes oversight of major City-initiated projects, outreach to and involvement with community members on issues of local concern, direction of the annual budget process, and coordination of City Council agendas. The City Manager’s ofce includes administration of Capital Projects, Communications, Community Outreach, Diversity, Equity, and Inclusion (DEI), and Sustainability, and provides a resource for general information for the citizens of South San Francisco. City personnel are under the authority of the City Manager. THE DEPARTMENT SUPPORTS ITS MISSION TO THE CITY THROUGH: Conduct regular recurring meetings with department heads, key staff, and elected ofcials to stay abreast of successes, challenges, and progress on the City Council’s priorities. The form of these meetings can vary in size and cadence – from one-on-one to small group meetings, such as meetings with staff responsible for delivering the Capital Improvement Plan, bi-weekly department head meetings, and weekly one-on-one meetings with department heads. Ensure that the City Council agendas are balanced and timely to ensure the City’s business is accomplished with the opportunity for public input/comment. The Diversity, Equity, and Inclusion Ofcer serves as the staff liaison for the Equity and Public Safety Commission, which continues to review data, provide recommendations, and build community trust. The Chief Sustainability Ofcer ensures that the City continues to make progress on its Climate Action Plan and brings forth ordinances or ordinance amendments consistent with modern sustainability standards. The Chief Sustainability Ofcer oversees and coordinates the City’s cross-departmental environmental initiatives.  Ensuring that on a biennial basis, the City continues to assess core services through statistically signicant community surveys. ACCOMPLISHMENT/INITIATIVE HIGHLIGHTS IN FISCAL YEAR 2024-25: Adoption of the Mooring Regulations Ordinance Opened the Centennial Way Park South Broke ground on Orange Memorial Aquatic Center Awarded contract for architectural design of Westborough Pre-School expansion Hosted South City Pride celebration on Grand Ave. Participation in the SMC Pride Parade and celebration Ongoing Linden Park design and outreach efforts Celebrated Samoan Heritage Week with proclamation and ag raising Participation in Pistahan parade and Filipino ag raising Opening of Karyl Matsumoto Caltrain Plaza Continued providing Every Kid Deserves a Bike Continued the tradition of Youth in Government National Night Out at eight locations throughout the City Celebration of Juneteenth Coordinated annual free drive-thru Flu shot Clinic Ordinance prohibiting the retail sale of on polystyrene foam City of South San Francisco | FY2025-26 Budget Book Page 264 Led several tobacco retailer information sessions and revision of the avored tobacco ordinance Continued collaboration with SSFUSD on hosting Ruby Bridges Day Hosted representatives from NLC in celebration of their Centennial NLC Roadshow Hosted food and toy drives during the holiday season Hosted a holiday toy giveaway in District 5 (for the entire community) Hosted several business engagements in formation of the East of 101 Area Community Facilities District Created comprehensive portfolio of infrastructure needs as a part of the East of 101 Community Facilities District (CFD) Sponsored state legislation relating to the Mello-Roos Act, specically as it relates to formation of Community Facilities Districts Continue to implement and provide education to the community and businesses on the City’s Local Minimum Wage Ordinance Continue to track all state and federal legislation pertinent to the City’s interests Continue to collaborate and build relationships with intergovernmental agencies in San Mateo County OBJECTIVES FOR FISCAL YEAR 2025-26: Lead efforts to identify path forward for long-term scal sustainability, including evaluation of operating budget for efciencies and reductions and revenue enhancement. Monitor delivery of departmental goals associated with implementation of the General Plan and Climate Action Plan. Continue City-wide National Night Out program. Implement recommendations of the Racial and Social Equity Plan. Enhance city-wide volunteer coordination Near completion of construction of the new Orange Memorial Park Aquatic Center. As a certied Age Friendly City, continue to implement goals identied by the Age Friendly Steering Committee. BUDGET HIGHLIGHTS FOR FISCAL YEAR 2025-26: Limited term funding for enforcement of the Mooring Regulations Ordinance Continue funding for FlashVote Continue funding Sister Cities Program Continue funding Americorps Volunteer Infrastructure Program (VIP) fellowship program tinue funding for the implementation of an updated and more robust Climate Action Plan with an emphasis on intradepartmental collaboration on all sustainability initiatives. City of South San Francisco | FY2025-26 Budget Book Page 265 Organizational Chart Key Performance Measures City of South San Francisco | FY2025-26 Budget Book Page 266 Expenditures Summary 4 ,849,323 $948,323 (24.31% vs. prior year) Expenditures by Type Budgeted vs. Historical Expenditures by Type MillionsInterdepartmental Supplies And Services Salaries And Benefits FY2024FY2025FY2026$0 $1 $2 $3 $4 $5 $6 Expense Objects Salaries And Benefits $2,301,200 $2,599,482 $2,659,482 $3,236,849 24.5% Supplies And Services $958,961 $1,157,145 $1,493,029 $1,455,945 25.8% Interdepartmental $144,373 $144,372 $144,372 $156,529 8.4% Total Expense Objects:$3,404,533 $3,900,999 $4,296,883 $4,849,323 24.3% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 267 Positions Summary FY2025-26 Changes and Highlights Positions:  $ 7,576 Reclass 1.0 FTE Administrative Assistant I to Administrative Assistant II (absorbed by vacancy savings)   Supplies and Services: $ 200,000 Abandoned/Derelict Vessel Removal/Destruction 100,000 Biennial Community Survey $ 300,000 TOTAL FY2024-25 Changes and Highlights Positions:   $ (125,847)Freeze 1.0 FTE Administrative Assistant I $ (178,075)Freeze 1.0 FTE Management Analyst II $ (91,790)Transfer 2.0 FTE Promotores to ECD $ 40,000 Potential reclass for CMO staff $ (355,712)TOTAL   City of South San Francisco | FY2025-26 Budget Book Page 268 Finance Karen Chang Director of Finance     MISSION STATEMENT: The Finance Department provides accurate, transparent, complete, and timely nancial information to support the City’s operations while ensuring South San Francisco long-term scal sustainability. The department is responsible for safekeeping, management, and accounting of the City’s nancial assets. The department is responsible for payroll administration, accounts payable processing, business licenses issuance, risk, and debt management, while acting in a duciary capacity for assessment districts. THE DEPARTMENT SUPPORTS ITS MISSION TO THE CITY THROUGH: Budgeting and accounting for nancial transactions to ensure optimal management of City revenues and appropriations, and accurate recording and reporting of nancial transactions in accordance with regulations and standards Building multi-year forecasts to assist effective nancial decision-making and future application of resources Managing payment of vendors and City employees to effect continued provision of City services and programs, and avoid delays to public projects Receiving and accurately recording revenues from various sources to ensure funds are available to support City projects and programs Overseeing the City’s cash ow needs to support prudent investment of funds by the City Treasurer Establishing strong internal controls to maintain control of, and accountability for, City funds Managing the City’s annual nancial audit and production of the Annual Comprehensive Financial Report (ACFR) in conjunction with the City’s independent auditor Managing and maintaining the City’s Business License program ACCOMPLISHMENT/INITIATIVE HIGHLIGHTS IN FISCAL YEAR 2024-25: Completed the FY2023-24 nancial audit and Annual Comprehensive Financial Report (ACFR) in a timely manner and received the Certicate of Achievement for Excellence in Financial Reporting Award from the Government Finance Ofcers Association (GFOA) Received the GFOA Distinguished Budget Award for FY2024-25 Maintained a AAA bond rating Successfully modernized the Business License Tax and passed the ballot measure by over 80% Completed an RFP process for selection of a new enterprise resource planning software Completed an RFP process and awarded contract for Sales Tax Advisor Completed an RFP process and awarded contract to hire a consultant to conduct Transient Occupancy Tax (TOT) auditing service, short-term rental monitoring program and parking taxes City of South San Francisco | FY2025-26 Budget Book Page 269 OBJECTIVES FOR FISCAL YEAR 2025-26: Implementation of the selected Enterprise Resources Planning software Complete FY2024-25 audit and issue Annual Comprehensive Financial Statements (ACFR) and all the statutory reports in a timely manner Facilitate and coordinate the issuance of CFD for E101 projects Maintain a AAA Bond Rating Obtain GFOA Certicate of Excellence in Financial Reporting for FY2024-25 Obtain GFOA Distinguished Budget Award for FY 2025-26 Implement new Governmental Accounting Standards Board (GASB) Accounting Pronouncements Explore revenue enhancement strategies to ensure long-term scal sustainability Transition the administrative services responsibilities to HdL for Transient Occupancy Tax, Parking Tax, Conference Center Tax, Business Taxes to enhance compliance, streamline operations and simply payment process for business Onboarding HdL as City’s new Sales Tax Consultant. Organizational Chart * Underlled positions: Accountant I is underlling the Management Analyst II position. Accounting Assistant II is underlling the Accounting Technician position. City of South San Francisco | FY2025-26 Budget Book Page 270 Key Performance Measures City of South San Francisco | FY2025-26 Budget Book Page 271 Expenditures Summary 4 ,329,4 81 $432,224 (11.09% vs. prior year) Finance Proposed and Historical Budget vs. Actual Actual Budgeted FY2024 FY2025 FY2026 $0 $1M $2M $3M $4M $5M Expenditures by Type City of South San Francisco | FY2025-26 Budget Book Page 272 Budgeted vs. Historical Expenditures by Type MillionsInterdepartmental Supplies And Services Salaries And Benefits FY2024FY2025FY2026$0 $1 $2 $3 $4 $5 Expense Objects Salaries And Benefits $2,564,737 $3,273,046 $3,273,046 $3,514,689 7.4% Supplies And Services $501,037 $485,748 $815,646 $505,748 4.1% Interdepartmental $138,463 $138,463 $138,463 $309,045 123.2% Total Expense Objects:$3,204,236 $3,897,257 $4,227,155 $4,329,481 11.1% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 273 Positions Summary FY2025-26 Changes and Highlights Positions:  No Change   Supplies and Services: $ 20,000 Property Tax Consultant FY2024-25 Changes and Highlights       Positions:        $ (55,830)Delay in lling the Financial Analyst II position by 4 months     $ (60,560)Delay in lling the Accounting Supervisor position by 4 months    $ (33,500)Savings in underlling the MA position with Accountant I     $ (149,890)TOTAL                City of South San Francisco | FY2025-26 Budget Book Page 274 Non-Departmental Non-departmental expenditures are General Fund expenditures that benet the City as a whole, and that do not t into one particular department, including Animal Control services, C/CAG, and grant writing consulting services.  It also includes general transfers from the General Fund to other funds (excluding CIP). Expenditures Summary Expenditures are at in the FY 2025-26 budget compared to the FY 2024-25 adopted budget. The budget also includes subsidy transfers from the General Fund to the Benets Fund ($0.25 million) and the Storm Water fund ($0.25 million). 1,894 ,367 $0 (0.00% vs. prior year) Expenditures by Type Budgeted vs. Historical Expenditures by Type MillionsTransfers Supplies And Services FY2024FY2025FY2026$0 $0.5 $1 $1.5 $2 Expense Objects Supplies And Services $856,668 $1,394,367 $1,685,629 $1,394,367 0% Transfers $500,000 $500,000 $500,000 $500,000 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 275 Total Expense Objects:$1,356,668 $1,894,367 $2,185,629 $1,894,367 0% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) FY 2025-26 Changes & Highlights: None FY 2024-25 Changes & Highlights: None City of South San Francisco | FY2025-26 Budget Book Page 276 Human Resources Leah Lockhart Director of Human Resources MISSION STATEMENT: The Human Resources Department serves as a cooperative and engaged partner in support of the City’s goals and values. We are committed to working strategically and mutually with departments to provide programs and services that support a culture of achievement, continuous improvement, safety, employee empowerment, and teamwork. THE DEPARTMENT SUPPORTS ITS MISSION TO THE CITY THROUGH: Employee Development and Engagement Benets and Wellness Programs Recruitment, selection and onboarding Classication and Compensation administration Employee Relations and Performance Management Labor-Management Partnerships Occupational Health and Safety and Worker’s Compensation Administration Human Resources Information Management and Regulatory Compliance ACCOMPLISHMENT/INITIATIVE HIGHLIGHTS IN FISCAL YEAR 2024-25: Expanded programming for the Youth Summer Internship Program and hosted 17 summer high school interns. Completed labor negotiations for successor MOUs with 7 bargaining units. Conducted 58 recruitments (open and promotional) for full-time regular positions. Developed and implemented 7 new or amended job classications and to facilitate departmental stafng needs and restructuring. Conducted a City-wide job classication audit for driver ’s license requirements to comply with SB1100. Onboarded 53 new full-time employees, and administered 50 internal promotions. Completed a City-wide workplace violence risk assessment, and implemented workplace violence training for all City employees. Conducted three mental health wellness workshops through the City’s Employee Assistance Program provider. Transitioned to a new Worker’s Compensation Third-Party Administrator and implemented fast-track protocols to improve timely access to care for injured workers. Hosted the rst annual Diversity Employment Day Career Fair in collaboration with JobTrain and the Chamber of Commerce. Participated on the steering committee and selection committee for the ERP Request for Proposals and selection process. Streamlined onboarding process by implementing the use of electronic forms where possible. Updated and implemented standardized recruitment and selection procedures to ensure consistency and best practices in hiring. Implemented Administrative Partners quarterly meetings and training for administrative support staff. In conjunction with Information Technology staff, updated and rolled out new employee intranet. Completed COVID-19 sick leave data analysis and recovery project and submitted IRS reimbursement request for approximately $291,000. OBJECTIVES FOR FISCAL YEAR 2025-26: Continue review and analysis of recruitment, training, policies and employee benets and resources for potential changes or enhancements to better support diversity, equity and inclusion objectives. City of South San Francisco | FY2025-26 Budget Book Page 277 Develop and implement a manager and supervisor training curriculum in conjunction with quarterly management forums Convene an Employee engagement committee to advise on events and City-wide communication and engagement strategies, conduct second biannual City-wide survey. Participate in the implementation of a new ERP system (Human Resources & Payroll modules) Continue to expand mental health and wellness workshops for City employees Update and implement revised exit interview questionnaire and improve response rate to 70% or higher Complete review and update of City’s Personnel Rules and Regulations Organizational Chart Key Performance Measures City of South San Francisco | FY2025-26 Budget Book Page 278 Expenditures Summary 3,039,100 $330,619 (12.21% vs. prior year) Expenditures by Type Budgeted vs. Historical Expenditures by Type MillionsInterdepartmental Supplies And Services Salaries And Benefits FY2024FY2025FY2026$0 $0.5 $1 $1.5 $2 $2.5 $3 $3.5 Expense Objects Salaries And Benefits $2,168,925 $2,389,005 $2,389,005 $2,523,279 5.6% Supplies And Services $385,436 $264,284 $552,555 $364,284 37.8% Interdepartmental $55,191 $55,192 $55,192 $151,536 174.6% Total Expense Objects:$2,609,552 $2,708,481 $2,996,752 $3,039,100 12.2% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 279 Positions Summary FY2025-26 Changes and Highlights Positions:  $7,200 Hourly Interns   Supplies and Services: $    50,000 Contract for Investigations and Compensation Studies     50,000 Additional Recruitment Resources $ 100,000 TOTAL FY2024-25 Changes and Highlights   Positions:    $ (32,000)Reduce youth summer internships (YSIP) budget $ (32,000)TOTAL        City of South San Francisco | FY2025-26 Budget Book Page 280 Economic and Community Development Nell Selander Director of Economic and Community Development MISSION STATEMENT: The Department of Economic and Community Development is responsible for the preservation and improvement of the physical and economic conditions of the South San Francisco community. The Department provides the administrative oversight that contributes to the successful completion of the goals, objectives, and daily operations of the Building, Planning, Housing, and Economic & Community Development Divisions. THE DEPARTMENT SUPPORTS ITS MISSION TO THE CITY THROUGH: Overseeing and maintaining quality development and economic vitality. Building a beautiful city and foster high-quality urban design through the management of the General Plan and other land use plans, regulations, and initiatives. Overseeing the regulatory functions in a way that assures balanced, high-quality development and safeguards life, property, and public welfare in buildings. Ensure that projects conform to plans and conditions when they are built. Supporting local businesses and foster a vibrant, balanced source of jobs for local residents. Achieving the highest level of customer service through teamwork, dedication, initiative, innovation, and continuous learning, training, and adoption of best practices. Maintaining a work culture that is professional, supportive, trusting, honest, fast-paced, fun, genuine, and respectful. ACCOMPLISHMENT/INITIATIVE HIGHLIGHTS IN FISCAL YEAR 2024-25: Total Permits issued: 2350 Total Inspections: 14,317 Total ADU permits: 46 (we’ve estimated 30+ per year so this is encouraging for RHNA purposes) Total Fees Charged from Building (excludes Planning, Engineering or Fire): 5,087,500.77 Launched the Anti-Displacement Community Advisory Committee to study Commercial and Residential Displacement Acquired the Giffra Properties for future affordable housing rehab and small business preservation Preserved two (2) BMR units with City led acquisition BIO 2024 – held 40+ meetings with life science stakeholders Downtown community engagement for a potential Property based Improvement District – business walks, surveys, text campaign, and steering committee – 352 responses Economic Advancement Center – received $270k in additional grant funds (San Mateo County) Downtown revitalization – received $10k in grant funds (Genentech) to help activate the Breezeway with a night market event Enhancement of Promotores program – awarded a $20k grant from National League of Cities to expand multi-lingual outreach Processing several projects per state streamlining laws, and implementing new General Plan growth areas (500 / 522 Linden – 100% affordable, 170-180 South Spruce, Railroad Avenue rowhomes) Continued ADU permitting and production / alignment with state ADU laws Reviewing our rst housing project East of 101 since the zoning changed to permit residential (101 Utah) OBJECTIVES FOR FISCAL YEAR 2025-26: Continue entitlements for housing & biotech General Plan Implementation Focused planning for S. Airport Blvd (GP Change area) Objective Design Standards City of South San Francisco | FY2025-26 Budget Book Page 281 Historic Preservation Survey Sustainability of the Economic Advancement Center into FY 25-26 and beyond Continue downtown revitalization efforts – bringing more events downtown, etc. SRO/Mobile Home Relocation Benets Ordinance Adopt a Live Work Preference requirement approved by San Mateo County Tri-annual code cycle change to 2025, to be implemented 01/01/2026. Organizational Chart * Underlled position: Associate Planner is underlling a Senior Planner position. City of South San Francisco | FY2025-26 Budget Book Page 282 Key Performance Measures City of South San Francisco | FY2025-26 Budget Book Page 283 Expenditures Summary 9,607,144 $717,904 (8.08% vs. prior year) Expenditures by Type Budgeted vs. Historical Expenditures by Type MillionsCapital Outlay Interdepartmental Supplies And Services Salaries And Benefits FY2024FY2025FY2026$0 $10 $2.5 $5 $7.5 $12.5 Expense Objects Salaries And Benefits $6,008,578 $6,112,671 $6,129,294 $6,847,684 12% Supplies And Services $4,693,369 $2,407,954 $5,409,794 $2,344,402 -2.6% Capital Outlay $53,096 $0 $60,000 $0 0% Interdepartmental $368,615 $368,615 $368,615 $415,058 12.6% Total Expense Objects:$11,123,659 $8,889,240 $11,967,703 $9,607,144 8.1% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 284 Positions Summary FY2025-26 Changes and Highlights Positions:  $ (91,520)Minus 1.0 FTE Promotores   Supplies and Services: $    75,000 Construction Coordination Committee     40,000 TDM Monitoring & Complinance     30,000 Retail Strategies for ECR & Commercial Centers     50,000 JP Morgan Investment Conference $ (136,828)Building Permit Plan Check Services $    58,172 TOTAL FY2024-25 Changes and Highlights    Positions:     $ (210,602)Freeze 1.0 FTE Assistant Building Ofcial in FY 2025    $ (51,366)Eliminate 1.0 FTE Misc Hourly    $ (120,351)Freeze 1.0 FTE Senior Planner in FY2025    $ (22,628)Eliminate 0.40 FTE Research and Rehab Specialist PT    $ 91,790 Transfer 2.0 FTE Promotores from CMO to ECD    $ (313,157)TOTAL     City of South San Francisco | FY2025-26 Budget Book Page 285 Fire Department Matthew Samson Fire Chief MISSION STATEMENT: The South San Francisco Fire Department exists to protect people, property and the environment from the impacts of re, medical emergencies, the release of hazardous materials and natural or human caused disasters. We will work to prevent injury and damage through education, re prevention, and re/ life safety code enforcement. THE DEPARTMENT SUPPORTS ITS MISSION TO THE CITY THROUGH: Education Fire Prevention & Code Enforcement Emergency Response Emergency Medical Services Disaster Preparedness Fire Administration We strive to deliver efcient and effective service to our residents that directly contribute to community safety and preparedness, thereby enhancing quality of life. ACCOMPLISHMENT/INITIATIVE HIGHLIGHTS IN FISCAL YEAR 2024-25: Department: Hired three Paramedic Fireghters, six Emergency Medical Technicians, Safety Inspector I, and a Management Analyst I. Promoted one Fire Chief, one Battalion Chief, Four Fire Captains, and two Apparatus Engineers. Qualied ve acting captains and three acting engineers. Secured $50,000 in federal grant dollars to enhance the department’s re boat with a pump and nozzle. Took delivery of a new primary command vehicle; completed in service training on the vehicle and placed it into service. Completed specications and ordered 2 staff vehicles, added an additional all electric utility truck, and received a grant funded 500-gallon portable diesel trailer. Utilized grant funds to complete station security enhancements for Fire Station 64. Emergency Medical Services Division: There were 6,792 ambulance dispatches and 4,306 ambulance transports in 2024. Took delivery of 2 new advanced life support ambulances. Provided American Heart Association Curriculum to over 1,000 students. Completed all 2024 San Mateo County EMS updates for all department paramedics. Completed the recertication of Pediatric Advanced Life Support for all department paramedics. Emergency Preparedness Division: Over 4,000 hours of CERT volunteer and training hours. Installed 3 weather stations to better understand the impacts of severe weather events on call volume. Held a Citywide EOC training. Participated in 2 EOC exercises with San Mateo County. Activated EOC to handle the January winter storm events. Acquired satellite internet infrastructure to enhance communications during widespread disasters. Fire Prevention Division: Fire Prevention completed all State mandated inspections and reported to City Council. Fire Prevention conducted 2,409 inspections and opened 1,785 permits. Participated in Fire Prevention week teaching high school students at both El Camino and South San Francisco high schools bleeding control and CPR. City of South San Francisco | FY2025-26 Budget Book Page 286 Fire Suppression Division: Fire personnel responded to 8,571 incidents in 2024. Responded to 14 separate OES incidents creating over $845,000 in OES reimbursement fees for service. Draft tested every apparatus pump, pressure tested 14,600 feet of hose, pressure tested over 75 SCBA cylinders and NFPA tested all department ground and aerial ladders. Training Division: The Training Division completed over 14,214 hours of training. Completed safety and structural improvements on the department’s training tower. Completed 18-month probationary training for three Paramedic/Fireghters. Trained and qualied 10 department personnel to operate the department’s eet of unmanned aerial vehicles (UAV/drones). Certied 68 members in hazardous materials rst responder operations and 64 members to hazardous materials rst responder operations-decontamination. Completed overhaul and reorganization of the re department’s training facility and drill grounds. Hosted multiple courses focusing on operational response for res that involve lithium-ion batteries. Hosted specialized training focusing on response to Waymo autonomous vehicles and Sam Trans alternative fuel (hydrogen and battery) powered vehicles. Assisted in hosting a Fall and Spring, joint City College of San Mateo and San Mateo County Fire Chiefs Fireghter 1 Academies. Supported career development by sending 48 different personnel to California State Fire Marshal, National Wildre Coordination Group and FEMA certied training classes. OBJECTIVES FOR FISCAL YEAR 2025-26: Present stafng options to meet the continued increasing demand of emergency medical services. Continue to review, revise, and adopt department policies and procedures. Maintain and evaluate current apparatus, equipment, facilities and provided services. Evaluate response times as CAD changes are implemented. Specify the design, and purchase of one ambulance, one re engine, one command vehicle, and one re prevention vehicle. Replace the department’s complement of both medical and re portable radios. Evaluate current response processes with res related to lithium-ion batteries and develop policies to procure equipment and dene operational response to these types of incidents. Partner with the city’s information technology division to host an EOC exercise focused on ongoing cyber security threats. Receive and place into service a re boat and two advanced life support ambulances. Implement new software to support Fire Records Management System upgrade and transition to the new Fire Records Management System introduced by the National Fire Academy. Continue to improve programs aimed at reducing chronic carcinogen exposures at the stations and on emergency scenes, including a safety gear wear test for PFAS-free ensembles. Continue supporting employee wellness with Peer Support, mindfulness and exibility training. Evaluate and trial new uniform options to replace the current specication. Continue to collaborate with Human Resources Department to recruit Paramedic/ Fireghters, EMTs and to create new positions in the Fire Department. Continue design of Fire Station 63. Begin the design of Fire Station 62. Continue to complete 100% of mandated inspections and report our annual Fire Prevention metrics to City Council. Implement the new unmanned aerial vehicle program. Implement the new parking plan for Fire Administration, Fire Station 61, and Emergency Operations Center. Complete newly require trauma medical care for all paramedic reghters. Continue providing Community CPR education as a service. Host CERT academy. City of South San Francisco | FY2025-26 Budget Book Page 287 Support Neighborhood Emergency Response Teams. Complete station security enhancements for Fire Station 62 including a gate, security fencing, and additional lighting. Host a county-wide urban search and rescue drill as a component of the regional urban search and rescue training plan. Place new Fire Boat into service, prepare and qualify individuals on Crew Member and Boat Operator task books for the Fire Boat. Create new living quarters at Fire Station 61 to facilitate additional stafng as operationally dictated. Design and install radio infrastructure to provide proprietary radio frequency for South San Francisco use. Evaluate the State Fire Marshal’s re hazard severity zone maps and implement ordinances as applicable. Organizational Chart City of South San Francisco | FY2025-26 Budget Book Page 288 Key Performance Measures The Fire Prevention Division is responsible for life safety issues within the community. The division is involved with construction, occupancy inspections, public education, and re investigations. Fire inspections ensure that buildings and re protection systems are built and maintained according to the applicable codes. The Fire Prevention Division performs re plan checks and inspections for re sprinklers, alarms, and other systems. Fire construction permits are required to construct, alter, modify, or repair a re protection system. City of South San Francisco | FY2025-26 Budget Book Page 289 Expenditures Summary 40,214 ,421 $3,793,519 (10.42% vs. prior year) Expenditures by Type Budgeted vs. Historical Expenditures by Type MillionsCapital Outlay Interdepartmental Supplies And Services Salaries And Benefits FY2024FY2025FY2026$0 $10 $20 $30 $40 $50 Expense Objects Salaries And Benefits $31,103,432 $30,819,734 $31,369,734 $33,940,638 10.1% Supplies And Services $3,351,313 $3,350,185 $4,037,888 $3,974,771 18.6% Capital Outlay $11,528 $0 $373,999 $0 0% Interdepartmental $2,250,984 $2,250,984 $2,250,984 $2,299,012 2.1% Total Expense Objects:$36,717,256 $36,420,902 $38,032,605 $40,214,421 10.4% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 290 Positions Summary FY2025-26 Changes and Highlights Positions:   $ 11,555 Reclass 1.0 FTE Safety Inspector I - Hourly, to Safety Inspector I (absorbed by vacancy savings)  500,000 Overtime increase for emergency mutual aide (state and federally funded)  $511,555 TOTAL      Supplies and Services:  $ 400,000 Plan Review Contract Services      7,500 Equipment and Supplies      4,500 Fire States Date subscription    41,287 Vehicle extraction equipment    24,000 Replace (8) narcotics vaults with a cloud-based solution      5,000 Replace department training manikins      7,811 Tower Maintenance    10,000 PFAS-free PPE wear test, 2 sets    50,000 Supplies for emergency mutual aide response (state and federally funded) $ 550,098 TOTAL FY2024-25 Changes and Highlights Positions:   $ (298,090)Defer hiring 3.0 FTE paramedic/reghters City of South San Francisco | FY2025-26 Budget Book Page 291 $ (164,564)Freeze 1.0 FTE MA I position (step 1) $ (181,331)Freeze 1.0 FTE Safety Inspector Trainee (Hourly) $ (70,000)Reduce Training Division Overtime $ (713,985)TOTAL   City of South San Francisco | FY2025-26 Budget Book Page 292 Police Department Scott Campbell Police Chief MISSION STATEMENT: We are committed to proactively reducing crime, enhancing public safety, and addressing quality of life issues through education, enforcement, and community partnerships to make a better South San Francisco. Our vision is to maintain the highest ethical standards in all aspects of our duties and continually work with the community to develop a relationship built on trust and respect. We will serve the citizens of South San Francisco in the most courteous, efcient, and professional manner possible. THE DEPARTMENT SUPPORTS ITS MISSION TO THE CITY THROUGH: Community Academy program, presented since 1998 Hispanic Community Academy, presented since 2000 Youth Academy program for children, 10 to 14, presented since 2015 Summer Youth Academy, presented since 2018 Senior Academy program, presented since 2022 Providing numerous outreach programs and services to our community The YES (Youth Enrichment Series) Program. The program is targeted to 5th grade classes but can easily be taught to younger elementary school classes and middle school classes as well. The lessons cover subjects such as Bullying, Communication, Decision Making, Online Dangers, and Substance Abuse. Police Explorer program designed to encourage teenagers and young adults to actively participate in the police department and give back to their community. National Night Out program to strengthen partnerships with our community Continued support and collaboration with the Commission on Equity and Public Safety ACCOMPLISHMENT/INITIATIVE HIGHLIGHTS IN FISCAL YEAR 2024-25: Launched Project Guardian and Community Camera Assistance Program Expanded FLOCK ALPR camera program Launched new Public Safety Drone Program Onboarded and welcomed 10 new employees to ll vacancies Criminal Interdiction Unit (Sergeant / Corporal / 2 Ofcers) Continued mission – enforcement, intelligence, community relationship building Community Outreach Team (2 Ofcers) Continued mission – addressing quality of life issues throughout the City Worked extensively with the Homeless Outreach Team to assist unhoused and less-fortunate individuals to nd housing and obtain social services Awards received: Vehicle Theft Interdiction Awards Presented by CHP and AAA Firearm Seizure Awards DUI Enforcement Awards Presented by (MADD) Mothers Against Drunk Driving Valor and Service Awards Presented by Peninsula Council of Lions Clubs Veterans of Foreign Wars Public Servant Awards Annual Chief ’s Awards and Captain’s Quarterly Awards 911 Dispatcher of the Year, District Attorney’s Ofce Investigator of the Year, CORA Award, Explorer Post and Explorer Advisor of the Year, Commendations Continued success with the Community Wellness and Crisis Response Team Continued building upon Employee Wellness and Peer Support Program Grant funding from the Ofce of Trafc Safety for trafc and DUI enforcement. The grant for the 2024- 2025 year was $118,000. This is the 16th year of the OTS grant partnership – we have received $ 1,995,256 to date. City of South San Francisco | FY2025-26 Budget Book Page 293 Grant funding from the California Department of Justice Tobacco Grant Program (Proposition 56). The grant application was approved by Cal DOJ in November 2021 and the Police Department was awarded a grant for $216,855. The operating period for the grant is from December 1, 2021, through June 30, 2025. Grant funding from the Department of Justice (DOJ) Bulletproof Vest Partnership (BVP) for soft armor vests in the amount of $11,029.25 Acceptance of $53,358.28 in grant funding from the State of California for Ofcer Wellness and Mental Health. The operating period for the grant is three years and ends in December 2025. Completed Crisis Intervention Training for the majority of sworn Department personnel Utilized Public Safety Impact Fees and DOJ asset-seizure funds to replace outdated radio systems Partnered with San Mateo County on successful Gun Buy Back program Sent numerous employees to various conferences, specialized schools, and leadership academies to support employee development Implemented LAZ privatized parking enforcement program OBJECTIVES FOR FISCAL YEAR 2025-26: Continue to hire and retain high quality employees Joint initiative with FD: Launch a new program “Expanding the Blue and Red: Recruiting for Women in Public Safety.” This recruiting event will be aimed at expanding female recruitment efforts for PD and FD. Improve transparency by implementing “Citizen RIMS” which is a web-based interface that allows the public to view local crime data, including incident mapping and agency congurable statistical information. Hire a Community Wellness and Crisis Response Clinician as a city employee. This will be a signicant costs savings compared to our contracted clinician agreement. Utilize Asset Forfeiture Funds to purchase a Polaris off-road public safety vehicle to be utilized for city events, patrolling areas with no vehicle access and responding to emergency calls in areas with difcult terrain Continue partnership with Drug Enforcement Agency (DEA) Task Force Continued goal of 100% of sworn ofcers trained in conict de-escalation (CIT) Continued goal of 100% of sworn ofcers trained in evidence-based implicit bias City of South San Francisco | FY2025-26 Budget Book Page 294 Organizational Chart Key Performance Measures City of South San Francisco | FY2025-26 Budget Book Page 295 Expenditures Summary 42,318,884 $4,114 ,387 (10.77% vs. prior year) Expenditures by Type Budgeted vs. Historical Expenditures by Type MillionsSupplies And Services Interdepartmental Salaries And Benefits FY2024FY2025FY2026$0 $10 $20 $30 $40 $50 Expense Objects Salaries And Benefits $32,867,123 $33,140,857 $33,255,157 $36,974,223 11.6% Supplies And Services $1,585,265 $2,433,226 $2,458,239 $2,559,226 5.2% Interdepartmental $2,630,415 $2,630,414 $2,630,414 $2,785,435 5.9% Total Expense Objects:$37,082,803 $38,204,497 $38,343,810 $42,318,884 10.8% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 296 City of South San Francisco | FY2025-26 Budget Book Page 297 Positions Summary FY2025-26 Changes and Highlights Positions:  $ 227,630 Crisis Intervention Specialist ($70,000 to be funded from Opioid Settlement Funds)   Supplies and Services: General Fund  $ 50,000 Mental Health Service Supplemental Resources 60,000 Increase Recruitment Support (funded through use of evidence revolving fund) $110,000 TOTAL FY2024-25 Changes and Highlights Positions:  $ 479,307 Add 1.0 FTE Police Captain (M280) $ (558,228)Delete 1.0 FTE Deputy Police Chief (M765) $ 381,170 Add 1.0 FTE Police Lieutenant (M275) $ (318,660)Delete 1.0 FTE Police Sergeant (C165) $ (149,899)Freeze 1.0 FTE Communications Dispatcher $ (50,772)Delete 0.38 FTE Miscellaneous Hourly City of South San Francisco | FY2025-26 Budget Book Page 298 $ (262,666)Freeze 2.0 FTE Parking Enforcement Ofcer $ (1,528,192)Freeze 8.0 FTE Police Ofcer. The vacancies will be replenished with new ofcers, but that will happen gradually $ (36,680)Delete 0.48 FTE Police Property/Evidence Asst $ (2,028,209)TOTAL City of South San Francisco | FY2025-26 Budget Book Page 299 Public Works Eunejune Kim Director of Public Works     Department of Public Works MISSION STATEMENT: In partnership with our diverse community, we proudly support and sustain the environment and infrastructure through responsiveness, innovation and professionalism. THE DEPARTMENT SUPPORTS ITS MISSION TO THE CITY THROUGH: Designing, constructing, and maintaining public infrastructure – Managing capital improvement projects, including roadways, sidewalks, sanitary sewer, storm drains, and public facilities, to ensure safety, longevity, and accessibility. Maintaining streets and trafc systems – Conducting street resurfacing, pothole repairs, street sweeping, and trafc signal maintenance to support safe and efcient transportation. Managing sewer and stormwater systems – Operating and maintaining wastewater collection and storm drain infrastructure to minimize overows, prevent ooding, and comply with environmental regulations. Providing emergency response and disaster preparedness – Responding to infrastructure failures, storm events, and other emergencies to protect public safety and restore critical services. Overseeing environmental and regulatory compliance – Implementing programs to meet stormwater pollution prevention (NPDES), waste reduction (SB 1383), and air quality regulations. Administering public works permits and inspections – Reviewing and approving construction work in the public right-of-way to ensure compliance with City standards. Enhancing sustainability and electrication initiatives – Advancing projects that support clean energy, eet electrication, and climate resilience in City operations. Engaging with the community – Providing outreach, education, and volunteer opportunities to support public awareness of infrastructure maintenance, sustainability efforts, and public safety. City of South San Francisco | FY2025-26 Budget Book Page 300   ACCOMPLISHMENT/INITIATIVE HIGHLIGHTS IN FISCAL YEAR 2024-25: Engineering Division: The Engineering Division successfully administered and delivered the Capital Improvement Program (CIP) budget, totaling $174.7 million across 186 projects, enhancing South San Francisco’s infrastructure, safety, and sustainability. Enhancing Connectivity & Mobility: Westborough Area Broadband Expansion (pf2210): Awarded construction contract for ber optic cable installation in City-owned conduit. Grand Boulevard Project (st1807): Substantially completed construction, enhancing sidewalks, bicycle facilities, and pedestrian paths. Citywide School Trafc Safety Improvement Project (tr2405): Awarded contract for new 15MPH speed limit signage in school zones. Improving Public Infrastructure & Safety: Citywide Sanitary Sewer Video Pipe Inspection (ss2001): Awarded contract to inspect over 632,000 linear feet of sewer pipe and 2,836 manholes. Junipero Serra Blvd Buffered Bike Lane Enhancement (tr2502): Design phase substantially completed for new bike lane protection. Downtown & Old Town Lighting Improvements (pk2307): Advanced design phase to upgrade 100+ streetlights along key corridors. Safe Routes to School – Parkway Heights Middle School (st2507): Conducted a walk audit and installed demonstration projects improving student safety. Sustainability & Future Planning: MTC Transportation Development Act Grant (tr2414): Secured $345,717 for bike safety enhancements. Vision Zero Action Plan Grant (tr2501): Received $400,000 from the U.S. DOT to advance trafc safety initiatives. SSF Shoreline Protection & Connectivity (sd2402): Secured grants from OPC and Caltrans for a feasibility study. Ongoing & Upcoming Projects: 2025 Surface Seal Project (st2502): Completed design, with construction scheduled for Spring/Summer 2025. Trafc Signal Battery Backup Systems (tr2408): Designing backup installations for over half of city trafc signals to improve resilience. City of South San Francisco | FY2025-26 Budget Book Page 301 Bay Trail – Centennial Way Connection (tr2407): Completed scoping for improved trail connectivity. The division remains committed to delivering high-quality infrastructure, enhancing safety, and promoting sustainable growth in South San Francisco. Water Quality Control Plant (WQCP) Division: The Water Quality Control Plant (WQCP) continues to uphold the highest standards in wastewater treatment, environmental protection, and regulatory compliance. Operational Excellence & Compliance: Recognized with the ELAP Plant Chemist of the Year award from the CWEA San Francisco Bay Section. Achieved full compliance with National Pollutant Discharge Elimination System (NPDES) permit requirements. Successfully enforced State-mandated Pretreatment, Pollution Prevention, and Stormwater Pollution Prevention Programs. Infrastructure Maintenance & Innovation: Developed an online Operations & Maintenance Manual to streamline staff access to troubleshooting resources. Conducted preventative maintenance and refurbishment of all inuent, efuent, and pump station sewage pumps. Calibrated and adjusted all WQCP and sanitary sewer pump station ow meters to ensure accuracy. Strategic Planning & Sustainability: Continued revising the Facilities Master Plan to develop a Dewatering and Biosolids Facility improvement plan, aligning with SB 1383 regulations. Provided ongoing training for wastewater operations, safety, and career development. Facilitated a Project Partnership Agreement with the Army Corps of Engineers for the Coastal Storm Risk Management Project, advancing design and construction. Through innovation and strategic planning, WQCP ensures clean water, environmental stewardship, and resilient infrastructure for South San Francisco. City of South San Francisco | FY2025-26 Budget Book Page 302 Maintenance & Operations Division: The Maintenance & Operations Division remains dedicated to public safety, environmental sustainability, and high-quality city services for South San Francisco residents. Sustainable & Efcient City Services: Advanced the City’s Fleet Electrication Plan, replacing conventional vehicles with electric and hybrid alternatives. Provided safe, reliable, and free transportation through the South City Shuttle, serving an average of 7,000 riders per month. Partnered with the Town of Colma to expand shuttle service to Veterans Village. Environmental Stewardship & Community Engagement: Increased participation in the Adopt-a-Storm Drain Program by 4%, with 191 volunteers maintaining 307 drains, supporting the City’s Climate Action Plan. Expanded public outreach efforts through social media, city events, and community meetings. Public Health, Safety & Infrastructure Maintenance: Resolved and closed 1,084 Code Enforcement cases, ensuring public health, safety, and welfare compliance. Flushed over 55 miles of sanitary sewer mains, preventing blockages and system failures. Provided 24/7 emergency response during storms, mitigating potential ooding and infrastructure damage. Addressed 4,333 public service requests in 2024. City of South San Francisco | FY2025-26 Budget Book Page 303   OBJECTIVES FOR FISCAL YEAR 2025-26: Maintain and Improve Pavement Condition Index (PCI) Above "Good" Rating – Continue roadway maintenance and repair projects to sustain quality infrastructure. Enhance Trafc Safety Through Community Engagement – Expand public participation in road safety programs such as Safe Routes to School, Vision Zero, and public outreach initiatives. Secure Sustainable Funding for Future Transportation Improvements – Actively pursue grant funding and nancial partnerships to support critical infrastructure projects. Promote Equitable and Accessible Transportation Solutions – Advance complete streets planning and ADA-compliant infrastructure to improve mobility for all users. Foster Innovation in Infrastructure Planning – Implement new technologies and data-driven solutions to optimize project delivery and public safety. Expand Adaptive Trafc System – Continue installation of the Adaptive Trafc system west of US 101. Advance EV Implementation Plan – Continue to implement the City’s EV plan and seek grant opportunities for vehicles and infrastructure. Deliver Capital Improvement Program – Ensure the successful administration and delivery of ongoing Capital Improvement Program projects. Reevaluate Sewer Rate Plan – Partner with Bartle Wells to reassess the ve-year sewer rate plan. Ensure SB1383 Compliance – Continue outreach, education, and compliance efforts for all waste generators, targeting 100% compliance for residential and commercial properties. Improve Storm Drain Infrastructure – Enhance the operation and condition of the City’s storm drain system. Complete Storm Drain Master Plan – Finalize and implement the Storm Drain Master Plan (sd2301). Assess Stormwater Infrastructure – Complete a comprehensive stormwater infrastructure assessment. Electrify Storm Pump Stations – Implement electrication projects for city storm pump stations. Advance Sewer Rehabilitation – Continue improvements to the City’s sewer rehabilitation program. Minimize Sanitary Sewer Overows (SSO) – Reduce SSOs while standardizing and improving reporting procedures. Enhance Spill Emergency Response – Improve the Spill Emergency Response Plan and conduct staff training on new material. Increase Community Involvement – Expand volunteer participation in the city’s Adopt-a-Storm Drain program. Secure Grant Funding – Apply for and receive grants for trafc congestion management, street improvements, electric vehicle purchasing, sustainability practices, stormwater pollution prevention, and transportation initiatives. Support Free Shuttle Program – Apply for and secure a sixth-round grant to continue marketing the Free South City Shuttle program. Ensure Workplace Safety – Minimize employee injuries through ongoing safety training and best practices. City of South San Francisco | FY2025-26 Budget Book Page 304 Meet Environmental Compliance Standards – Adhere to National Pollutant Discharge Elimination System (NPDES) and Clean Water Act (CWA) requirements. Develop Staff Expertise – Provide training and development opportunities to support departmental succession planning. Enhance Multilingual Outreach – Expand and improve multilingual outreach and education regarding Public Works programs and services. City of South San Francisco | FY2025-26 Budget Book Page 305 Organizational Chart * Underlled positions: Associate Engineer is underlling the Senior Engineer position. Environmental Compliance Inspector I is underlling the Environmental Compliance Inspector II position. City of South San Francisco | FY2025-26 Budget Book Page 306 Key Performance Measures City of South San Francisco | FY2025-26 Budget Book Page 307 Expenditures Summary 12,553,525 $1,449,896 (13.06% vs. prior year) Expenditures by Type Budgeted vs. Historical Expenditures by Type MillionsInterdepartmental Supplies And Services Salaries And Benefits FY2024FY2025FY2026$0 $2.5 $5 $7.5 $10 $12.5 $15 Expense Objects Salaries And Benefits $5,116,920 $5,437,967 $5,428,297 $6,438,644 18.4% Supplies And Services $3,246,163 $3,901,886 $6,995,828 $4,450,486 14.1% Capital Outlay $0 $0 $226,564 $0 0% Interdepartmental $1,763,775 $1,763,775 $1,763,775 $1,664,394 -5.6% Total Expense Objects:$10,126,859 $11,103,629 $14,414,465 $12,553,525 13.1% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 308 Positions Summary City of South San Francisco | FY2025-26 Budget Book Page 309 City of South San Francisco | FY2025-26 Budget Book Page 310 FY2025-26 Changes and Highlights Positions:     General Fund      $ 1,374 Upgrade 1.0 FTE Management Analyst II to a Program Manager (27,352)Upgrade 1.0 FTE Management Analyst I to a Management Analyst II $ (25,979)TOTAL          Parking District Fund     $ 51,343 Upgrade 1.0 FTE Management Analyst II to a Program Manager      Sewer Enterprise Fund     $ (889)Upgrade 1.0 FTE Management Analyst II to a Program Manager 49,969 Upgrade 1.0 FTE Management Analyst I to a Management Analyst II $ 49,080 TOTAL   Position Change Total $ 51,826 Upgrade 1.0 FTE Management Analyst II to a Program Manager 22,618 Upgrade 1.0 FTE Management Analyst I to a Management Analyst II $ 74,444 TOTAL   Supplies and Services:    General Fund      $ 20,000 Thermoplastic Machine        Sewer Enterprise Fund     $ 750,000 Anaerobic Digestor cleaning     64,000 Uniform contract cost increase    1,100,000 Vehicles    $1,914,000 TOTAL          Parking Enterprise Fund     $ 75,000 Power-Washing Contract     140,000 License Plate Readers for Parking Enforcement    $215,000 TOTAL          Other Funds     $ 12,000 Uniforms (Stormwater)    5,500 Uniforms (Garage)   45,000 Essential Tools (Garage)   $62,500 TOTAL    FY2024-25 Changes and Highlights     Positions:      General Fund       $ (241,174)Delete 1.0 FTE Associate Engineer     $ 287,047 Add 1.0 FTE Senior Engineer     $ (131,496)1.5 FTE Public Works Maintenance Worker - Hourly-funded by Parking District Fund     $ (164,794)1.0 FTE Public Works Maintenance Worker - Senior- funded by Sewer Enterprise Fund    $ (250,417)TOTAL      City of South San Francisco | FY2025-26 Budget Book Page 311       Solid Waste Reduction Fund      $ 44,745 Add .50 FTE Ofce Specialist - Hourly (X415)          Parking District Fund      $ 131,496 1.5 FTE Public Works Maintenance Worker - Hourly           Sewer Enterprise Fund      $ 164,794 1.0 FTE Public Works Maintenance Worker - Senior           City of South San Francisco | FY2025-26 Budget Book Page 312 Library Valerie Sommer Director of Library MISSION STATEMENT: South San Francisco Public Library is actively committed to providing access to the best possible combination of library materials and services to meet the informational, educational, and recreational needs of our multicultural community in a professional manner with a human touch. THE DEPARTMENT SUPPORTS ITS MISSION TO THE CITY THROUGH: Instruction, assistance, and access to informational, recreational, and educational resources via the library’s print, audio visual, electronic and local history collections Customer service-oriented and patron-centered programs and services Partnerships with local businesses, agencies, schools, and residents, working together to meet the needs of our community Promotion of literacy and lifelong learning through educational programs, classes, reference services and collections Promotion of school success, youth development and the joy of reading ACCOMPLISHMENT/INITIATIVE HIGHLIGHTS FOR FISCAL YEAR 2024-25: Demand for library services and collections is robust at the new Library I Parks Recreation Center (LPR). The rst year of operation saw a 20% increase in South San Francisco Library cards issued to residents, rising from 34,655 pre-LPR to 41,500 in the rst year. This was accompanied by a 15% increase in circulation of year-over-year. With a surge in local interest in downloading eBooks and eAudiobooks, our goal to expand digital collections to meet community demand resulted in an astonishing 68% usage increase from 2022-23 to 2023-24. The Library focused programming on signicant cultural celebrations, including Lunar New Year, Black History Month, Women’s History Month, Asian American and Pacic Islander History Month, Pride, Filipino History Month, and Hispanic Heritage Month. These celebrations have featured author readings, storytimes, dance performances, poetry recitals, lm screenings, and hands-on activities, adding up to over 10,000 attendees. The Library made signicant strides in STEM programming as well. At our Amgen Discovery Center, we engaged thousands of children, teens, and adults through dozens of high-quality technology learning programs. Many programs featured partners and volunteers such as Amgen and local engineers and scientists. Teen volunteers also host several regular STEM workshops, serving elementary and middle school students, as well as seniors. Community support in the form of volunteerism has taken off; 74 teen volunteers and 84 adult volunteers have given their time to perform duties ranging from shelving, pulling holds, assisting and presenting makerspace programs, providing afterschool homework assistance, supporting special crafts and how-to programs, and more. The Main Library again acted as a 30-Day Vote Center for November 2024 Presidential Election and 11- Day Vote Center for the March 2025 Special Election. Project Read Trivia Challenge celebrated its 31st Anniversary, with 27 trivia teams, approximately 300 supporters, volunteers and trivia buffs in attendance, raising over $20,000 net to support library literacy programs and services. Library staff at the Gene Mullin Community Learning Center provided a second year of a strategic ESL grant from the California State Library and secured grant funding to expand afterschool homework programming, providing social emotional learning for elementary age youth, and offering work experience internships for local high school teens. The annual Library Summer Learning Challenge had over 10,328 signups of local youth receiving free books, attending special program and events, and participating in Parks and Recreation Summer Camp City of South San Francisco | FY2025-26 Budget Book Page 313 visits; staff supported the County-wide Big Lift Inspiring Summer (BLIS) program, partnering with SSFUSD and SMCL by embedding a staff member as a Community Program Specialist at Los Cerritos Elementary School and distributing free books to BLIS classes. The South San Francisco Youth Poet-in-Residence featured the current California Poet Laureate and current and previous SSF Youth Poets in an inspiring evening of poetry and music, leading up to the fourth contest to select a local Youth Poet. Library staff secured over $500,000 in grant funding, including support for Project Read Learning Wheels programs and services; Gene Mullin Community Learning Center afterschool and summer academic and enrichment programs; ESL classes and online learning support, MakerSpace program support; literacy and author programs, Teen Internships, STEM Presentations and Programming, and Early Vote Center services. OBJECTIVES FOR FISCAL YEAR 2025-26: Big Lift Inspiring Summers (BLIS) Continue supporting the BLIS summer learning partnership with SSFUSD and SMCL, with library staff embedded as a Senior Community Program Specialist at an SSFUSD Elementary School and deploying Summer Learning Challenge book distributions at BLIS sites. Plan and provide accessible, engaging cultural programs and events in LPR Continuing the success of Lunar New Year and Black History Month, Library staff is partnering with other City departments and outside organizations to plan an active and vibrant calendar of cultural celebrations, recognizing the rich diversity of the South San Francisco community. Plans include events for Asian- American and Pacic Islander History Month, Pride Month, Hispanic Heritage Month, Filipino American History Month, and more. STEM Workshops and Technology Learning Assistance The Library will continue to work with volunteers and partners to bring even more STEM workshops to the Amgen Discovery Center, with conversations already underway to bring more organizations into the space. Library staff are also preparing to expand the popular Tech Drop In service, where staff and volunteers help community members troubleshoot their devices and learn about their functions. Career Opportunities for Youth The Library will continue to provide opportunities for youth to gain work experience, develop their portfolios and enhance their college applications through summer jobs and year-round volunteer opportunities at the libraries and Gene Mullin Community Learning Center (GMCLC). Library staff will also pursue a second year of the California State Library’s Teen Success Initiative grant opportunity to support youth through full year internships at the libraries and GMCLC. Youth Commission and Teen programming The Library will continue in its new role as the liaison to the Youth Commission after welcoming several new members this year. Commissioners, already very active in the Library, are looking to expand programming, STEM workshops and career panels for the community. Commissioners will also be consulted as we expand teen programs and grow the Young Adult library as a fun, interactive destination. Project Read/GMCLC Adult Programs Increase volunteer Tutor base at Project Read and GMCLC through the California State Library’s secured grant for ESL programing and by partnering with SMCC’s Skyline Work-Study program, hosting part-time student assistance as support for Project Read’s Adult Literacy Services. Volunteer development Continue to engage with volunteers to develop new opportunities for service, including providing story times for class visits, book distribution at local schools, and teaching classes and workshops in the Amgen Discovery Center. Partnership development City of South San Francisco | FY2025-26 Budget Book Page 314 Further develop our successful partnerships with Amgen, Genentech, Friends of the Library, Library Foundation and Parks & Recreation to provide for new programs, equipment and materials at the Grand Avenue Branch Library, Gene Mullin Community Learning Center, Library | Parks & Recreation Center, and Amgen Discovery Center. Collection Development Continue to expand our digital collections to offer more eBooks and streaming movies and television to meet growing community demand. Organizational Chart Key Performance Measures City of South San Francisco | FY2025-26 Budget Book Page 315 Expenditures Summary 9,277,479 $417,423 (4.71% vs. prior year) Expenditures by Type Budgeted vs. Historical Expenditures by Type MillionsInterdepartmental Supplies And Services Salaries And Benefits FY2024FY2025FY2026$0 $2 $4 $6 $8 $10 Expense Objects Salaries And Benefits $5,953,033 $7,310,114 $7,434,135 $7,735,487 5.8% Supplies And Services $1,000,814 $806,134 $935,640 $851,334 5.6% Interdepartmental $743,808 $743,808 $743,808 $690,657 -7.1% Total Expense Objects:$7,697,655 $8,860,056 $9,113,582 $9,277,479 4.7% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 316 Positions Summary FY2025-26 Changes and Highlights Positions:  $ 42,271 Convert 2 FTE Library Page positions to Library Assistant I - Hourly (absorbed by vacancy savings)   Supplies and Services:  $ 10,000 PLAN network service increase 5,000 Youth Library Program Support 5,000 Children's Books 24,754 ESL Grant Expenses $ 44,754 TOTAL FY2024-25 Changes and Highlights Positions:  $ 64,170 Add 0.85 FTE Literacy Services Assistant I - Hourly (X665) $ 102,414 Add 0.60 Literacy Services Coordinator (A445) $ (112,998)Freeze Management Analyst II $ (15,132)Freeze 0.2 FTE Library Assistant City of South San Francisco | FY2025-26 Budget Book Page 317 $ (13,396)Freeze 0.25 FTE Library Clerk $ (93,757)Freeze 2 FTE Library Page $ (9,919)Freeze 0.09 FTE Librarian II - Hourly $ (6,311)Freeze 0.06 FTE Librarian I - Hourly $ (1,583)Freeze 0.02 FTE Literacy Services Assistant Coordinator $ (1,434)Freeze 0.02 FTE Literacy Services Assistant I $ (4,060)Freeze 0.05 FTE Ofce Specialist - Hourly $ (92,006)TOTAL City of South San Francisco | FY2025-26 Budget Book Page 318 Information Technology (IT) Tony Barrera Director of Information Technology MISSION STATEMENT: To design, implement, and maintain the citywide Information Technology network; to set standards for all user hardware to assure system compatibility; to support user hardware and assist with the training of employees in the use of various common software; to assist departments in planning and implementation of their unique technology needs. THE DEPARTMENT SUPPORTS ITS MISSION TO THE CITY THROUGH: Training City staff on the use of software Upgrading software applications to keep current Network security Using technology to advance the business processes Maintaining a backup of data and systems Troubleshooting employee computer issues through a robust Help Desk system ACCOMPLISHMENT/INITIATIVE HIGHLIGHTS IN FISCAL YEAR 2024-25: Collaborated with various departments to establish network connectivity and installed CCTV cameras at the newly constructed Centennial Trail Skate Park. Leveraged existing software to build and migrate information to a new Intranet site and saving the City annual costs. Finalized negotiations with AT&T to build a wireless facility at 329 Miller Ave to enhance cellular coverage in the area. Successfully migrated the on-premises software application to a cloud-based infrastructure, enhancing scalability, security, and operational efciency. Switched to a more cost-effective internet service provider, which reduced monthly expenses while maintaining and improving connection speed and reliability. Selected a vendor for a 15-month implementation of a new community development permitting system. The project aims to modernize and streamline the permitting process, improving efciency and enhancing ease of use for residents, businesses, and contractors. Collaborated with the Finance Department to implement new business license fees following the passage of Measure W, ensuring compliance and effective revenue management. Secured an Americans with Disabilities Act (ADA) website consultant to update City websites, ensuring ADA compliance and improving accessibility for all users. Enhanced broadband connectivity at Westborough Preschool by installing a new ber optic cable, improving internet speed and reliability. The ber strands will be available for carriers to lease, enabling network expansion in the area. Improved connectivity to several City facilities using wireless bridges to provide speeds greater than 500Mbps. Upgraded the City’s server infrastructure to enhance performance, reliability, scalability, and ensuring support for current and future operations. Replaced outdated security cameras with advanced, high-denition systems to improve monitoring and safety. Modernized ofce equipment by installing new copiers and upgrading computers to enhance productivity and user experience. Collaborated with multiple departments to expand access controls across several City facilities, enhancing security and operational efciency. Continued to improve City cybersecurity posture, expanding multifactor authentication to the desktop and updating departmental policies and procedures. City of South San Francisco | FY2025-26 Budget Book Page 319 Collaborated with various City departments in providing new Geographic Information System (GIS) layers, developed new interactive maps and dashboards for staff and public use. Some notable projects include, overhaul of Zoning site, Community Camera Assistance Program, Catch Basin inspection collection map, and Incorporated sewer and storm system master plan data into GIS. As part of the Smart Corridor project, assisted Public Works in the setup and conguration of their new Trafc Management Control Room which included connecting intersection cameras. OBJECTIVES FOR FISCAL YEAR 2025-26: Initiate the implementation of a new Enterprise Resource Planning (ERP) system to replace a legacy nancial product and integrate payroll into a comprehensive solution. Enhance the City’s cybersecurity posture through ongoing improvements and security measures. Collaborate with various City departments to develop new Geographic Information System (GIS) layers, create interactive maps and dashboards for staff, and improve internal and public accessibility. Assist in launching operations for the new Aquatic Center. Migrate the City’s Voice Over IP (VoIP) unied communication system to a cloud-based solution for improved efciency and reliability. Upgrade the Emergency Operations Center video wall to enhance system reliability. Expand the City’s use of Microsoft cloud services. Transition the City’s domain from ssf.net to .gov to strengthen security. Replace outdated computers and equipment to ensure operational efciency and support of modern technology needs. Organizational Chart City of South San Francisco | FY2025-26 Budget Book Page 320 Key Performance Measures City of South San Francisco | FY2025-26 Budget Book Page 321 Expenditures Summary 4 ,708,478 $434 ,652 (10.17% vs. prior year) Expenditures by Type Budgeted vs. Historical Expenditures by Type MillionsInterdepartmental Supplies And Services Salaries And Benefits FY2024FY2025FY2026$0 $1 $2 $3 $4 $5 Expense Objects Salaries And Benefits $2,018,253 $2,230,447 $2,270,447 $2,398,765 7.5% Supplies And Services $2,117,217 $2,030,490 $2,306,879 $2,296,824 13.1% Interdepartmental $12,889 $12,889 $12,889 $12,889 0% Total Expense Objects:$4,148,359 $4,273,826 $4,590,215 $4,708,478 10.2% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 322 Positions Summary FY2025-26 Changes and Highlights Positions:  $40,000 Overtime and Standby Pay   Supplies and Services: $ 142,000 Software Increase  124,334 Phone Service Update $ 266,334 TOTAL   Development Software Fund $ 294,100 Software maintenance   Equipment Replacement Fund $ 100,000 Computer Replacement   PEG Fund $ 300,000 EOC video wall update NOTE: The Information Technology Department is not budgeted in the General Fund. The budget shown in this summary, unless otherwise stated, will be reected in Fund 785- Information Technology Internal Service Fund.         FY2024-25 Changes and Highlights       Positions: None                 City of South San Francisco | FY2025-26 Budget Book Page 323 Parks and Recreation Greg Mediati Director of Parks and Recreation MISSION STATEMENT: The Parks and Recreation Department’s mission is to provide opportunities for physical, cultural and social well being; protect and enhance the physical environment; and ensure the effective and efcient use of public facilities and open space. THE DEPARTMENT SUPPORTS ITS MISSION TO THE CITY THROUGH: Administration Division - Managing departmental business activities, and providing leadership and oversight in an effective and efcient manner to support the following three divisions, and providing high-quality customer service; Building Maintenance Division - Managing and maintaining public buildings that are functional, safe, active, sustainable and efcient, and can accommodate essential community and public safety services; Parks Division - Creating and maintaining parks and open spaces that are safe, clean, and sustainable while engaging the public with educational opportunities about South San Francisco’s outdoor resources; Recreation Division - Sponsoring recreation and enrichment programs that meet community needs for all ages, address childhood obesity and promote wellness, create a culture of curiosity and learning, enhance the quality of life for the participants, and stimulate economic and community development. ACCOMPLISHMENT/INITIATIVE HIGHLIGHTS IN FISCAL YEAR 2024-25: Building Maintenance: Tenant improvements and interior repairs and refreshing of City facilities, most notably City Hall. Development and implementation of enhanced preventative maintenance schedules for City facilities. Expanded the Building Maintenance team with additional staff to maintain and repair City facilities, including the new Police Station and Library | Parks and Recreation Center. Parks: Reforestation of Brentwood Park with new water-saving irrigation following removal of dozens of hazardous trees damaged by winter storms. Construction and opening of Centennial Way Park South and Oyster Point Shoreline Park (Phase 2). Delivery of Minor Maintenance Programs and support for various Capital Improvement Programs. Repaved and added basketball court surfacing and striping at Clay Park. Replaced failing light structure at Hillside Balleld. Purchased a new eld roller to help atten and grade sports elds, creating a safer playing surface. Began public outreach and design for Dundee Park remodel in coordination with the Capital Projects Department. Launched free tree program for resident’s front yard program in conjunction with Rise South City. Recreation / Administration: Expansion of senior program offerings, and senior center hours, formation of a new partnership with the National Alliance on Mental Illness (NAMI) at the senior center, and the initiation of the creation of the City's Age-Friendly Action Plan. Hosted the groundbreaking ceremony of new Aquatic Center at Orange Memorial Park, to be completed in late 2025 / early 2026. Hosted a ribbon cutting and grand opening event for Oyster Point Phase 2C Shoreline Park improvements, coinciding with the 51st Annual Thanksgiving Fun Run. Expanded art opportunities and calls for entries for public artworks. Piloted the RecRx program in collaboration with San Mateo County Health and the South San Francisco Medical Clinic to offer free swim lessons to clinic patients. City of South San Francisco | FY2025-26 Budget Book Page 324 OBJECTIVES FOR FISCAL YEAR 2025-26: Building Maintenance: Continue to implement minor maintenance program, preventative maintenance program, and capital project delivery. Continue to build a cohesive and effective maintenance team, including hiring of key positions and retention of staff. Commission the Orange Memorial Park Aquatic Center. Plan for the operation of a new preschool center at Westborough Park. Parks: Continue work to expand the City’s urban forest with grant funding from Coastal Quest and partnerships with Rise South City. Deliver the minor maintenance program, and support capital improvements including Dundee Park renovation, the new park at Linden and Pine Avenues, improvements to Willow Gardens parklets, remodeling of Orange Memorial Park restrooms, construction of dedicated pickleball facilities, and capital improvements at Orange Memorial Park, as well as providing support for Engineering Capital Projects. Create balleld design package for all city and school district ballelds to address grades and safety issues in regards to play surfacing. Plan for the operation of a new park at Linden and Pine Avenues. Recreation / Administration: Launch the Parks and Recreation Master Plan and Deferred Maintenance Assessment for City parks and facilities. Continue to expand program offerings, particularly for children and seniors, and launch of the RecRx program for low-income families in partnership with San Mateo County Health. Work with the Capital Projects team to deliver plans and bid the Westborough Preschool project, and prepare for operation of the new facility. Open and commission the Orange Memorial Park Aquatic Center, including building up stafng to support the maintenance and programming of the new two-pool facility. Adoption of the Age-Friendly Action Plan. City of South San Francisco | FY2025-26 Budget Book Page 325 Organizational Chart Key Performance Measures City of South San Francisco | FY2025-26 Budget Book Page 326 Expenditures Summary 29,088,632 $2,740,092 (10.40% vs. prior year) Expenditures by Type Salaries And Benefits (76.6%)Salaries And Benefits (76.6%)Salaries And Benefits (76.6%) Supplies And Services (17.8%)Supplies And Services (17.8%)Supplies And Services (17.8%) Interdepartmental (5.6%)Interdepartmental (5.6%)Interdepartmental (5.6%) City of South San Francisco | FY2025-26 Budget Book Page 327 Budgeted vs. Historical Expenditures by Type MillionsCapital Outlay Interdepartmental Supplies And Services Salaries And Benefits FY2024FY2025FY2026$0 $5 $10 $15 $20 $25 $30 $35 Expense Objects Salaries And Benefits $17,111,973 $21,081,936 $21,081,936 $22,294,987 5.8% Supplies And Services $4,333,484 $3,964,921 $7,110,032 $5,176,170 30.5% Capital Outlay $108,750 $0 $0 $0 0% Interdepartmental $1,301,683 $1,301,683 $1,301,683 $1,617,475 24.3% Total Expense Objects:$22,855,889 $26,348,540 $29,493,651 $29,088,632 10.4% Name FY2024 Actual FY2025 Adopted Budget FY2025 Adjusted Budget FY2026 Budgeted FY2025 Adopted Budget vs. FY2026 Budgeted (% Change) City of South San Francisco | FY2025-26 Budget Book Page 328 Positions Summary City of South San Francisco | FY2025-26 Budget Book Page 329 City of South San Francisco | FY2025-26 Budget Book Page 330 Highlights and changes FY2025-26 Changes and Highlights Positions:  Cultural Arts   $ 12,677 Add 0.25 Rec Leader II - Hourly (Cultural Arts Fund) 8,253 Add 0.15 Rec Leader III - Hourly (Cultural Arts Fund) $ 20,929 TOTAL - 0.40 FTE   General FundAquatics (positions are for a half-year, opening of new pool) $ 25,989 Add 0.27 Rec and Comm Services Program Coordinator 41,931 Add 0.83 Rec Leader II - Hourly 291,192 Add 5.29 Rec Leader III - Hourly 100,726 Add 1.65 Rec Leader IV - Hourly 59,566 Add 0.50 Building Maintenance Custodian $519,404 TOTAL - 8.54 FTE   General FundSenior Program $ 23,256 Add 0.25 Rec and Comm Service Program Coordinator - Hourly   General FundParks Program ($12,562)Convert Park and Maintenance Worker - Hourly to a Natural Resources Aid   Fund Totals   $20,929 Cultural Arts Fund - 0.40 FTE 530,098 General Fund - 8.79 FTE $551,027 Total Position Changes - 9.19 FTE   Supplies and Services: General Fund $192,149 New Pool Services and Supplies 14,500 Building Maintenance Supplies, Equipment and Services 20,000 Vehicular Gates and Rollup Door Maintenance 2,600 Caltrans Plaza Airspace Lease $229,249 TOTAL   Public Arts-in-Lieu fund $ 75,000 Art Component for Oyster Point IIC Location FY2024-25 Changes and Highlights Positions:   $ (141,130)Freeze 1.0 FTE Arborist Technician $ (52,250)Delay hiring 1.0 FTE Stationary Engineer $ 116,772 Add 2.05 FTE Recreational Leader III - Hourly for Extended Leaning Opportunities Program ("ELOP") - grant funded $ 129,569 Add 2.05 FTE Recreational Leader IV - Hourly for Extended Leaning Opportunities Program ("ELOP")- grant funded $ 9,029 Add 0.15 FTE Recreation Leader III - Hourly $ 13,113 Add 0.25 FTE Recreation Leader II - Hourly $ 75,103 TOTAL   City of South San Francisco | FY2025-26 Budget Book Page 331 CAPITAL IMPROVEMENT PROGRAM City of South San Francisco | FY2025-26 Budget Book Page 332 Executive Summary The Capital Improvement Program (CIP) is the City of South San Francisco’s comprehensive plan for both short and long-term infrastructure projects. These projects are grouped into six categories: Public Facilities - Projects to renovate, construct, and improve city buildings and infrastructure. Parks - Projects to replace and improve playgrounds, renovate sports elds, and expand parks at city-owned public spaces. Storm Drains - Projects to repair and improve storm drains and install green infrastructure to reduce pollution run-off into the San Francisco Bay. Sanitary Sewers - Projects to maintain the Water Quality Control Plant (WQCP), Collection System Pump Stations, and sanitary sewer lines within the City. Streets - Projects to repair bridges, resurface streets, improve medians and sidewalks, and study the feasibility of proposed roadway and rail extensions. Trafc - Projects focused on arterials, corridors, and key intersections, including adaptive trafc signals to improve trafc ow, pedestrian safety, trafc-calming, and bicycle safety. The CIP serves as a vital link between the City’s General Plan, various master planning documents, and the budget-facilitating planning, scheduling, and implementation of capital improvement projects over the next ve years. Project Selection and Prioritization In preparing this plan, the Public Works Department (PW) prioritizes projects that enhance the reliability and safety of the City’s infrastructure while ensuring compliance with regulatory mandates such as the Clean Water Act and National Pollutant Discharge Elimination System (NPDES) permits for stormwater and wastewater management. CIP Process The CIP process involves collaboration between various city departments and is created in a series of steps that engage various forecasting methods. Planning documents and infrastructure studies help guide the identication of project needs. City staff consider the following criteria when selecting projects for inclusion in the CIP: Grant-funded projects requiring a city contribution Previously approved projects under construction or contract Projects required for regulatory compliance Projects to maintain or upgrade existing City infrastructure Projects with no General Fund allocations Projects requested by the community or City departments Projects that can be reasonably delayed, are complete, or no longer necessary Departments submit CIP project requests to Public Works (PW), detailing project scope, justication, funding source(s), budget, status update (for existing projects), estimated completion dates, and any anticipated operations or maintenance impacts. PW staff evaluate each project based on these submissions and funding availability data provided by the Finance Department. PW then coordinates with the Finance Department and the City Manager to review all projects and the proposed funding timelines. Following agreement, the proposed CIP for the subject budget year(s) is presented to the Budget Subcommittee, consisting of two City Council members, alongside the annual operating budget. After incorporating the subcommittee’s recommendations, an updated CIP proposal and the annual operating budget are presented to the entire City Council at a study session. The CIP must be reviewed by the Planning Commission for consistency with the City's General Plan. The development of the CIP is not a project, as dened in the California Environmental Quality Act (CEQA). Thus, an environmental review is not required for its adoption; although individual projects listed herein may be subject to CEQA. Environmental reviews will be conducted during project implementation as appropriate. City of South San Francisco | FY2025-26 Budget Book Page 333 Appropriations The FY 2025-26 CIP budget totals $232.82 million. It includes 184 projects, of which 24 require new appropriations totaling $24.03 million. The Appendix provides detailed funding proposals for scal years 2025-26 through 2028-29. Funding Sources The for the FY 2025-26 CIP comes from a diverse range of sources depending on the nature of each project. These include: External grant funding (federal, state, and local) applied for by City staff, wherever possible Bond nancing for large-scale construction, when nancially feasible Development impact fees Transfers from other City funds (including the General Fund) and reserves when needed and appropriate Local tax measures(e.g., Measure A, Measure W [City and County], and Gas Tax) The following pages contain a pie chart and table that detail the distribution of funding sources and project types. Ongoing Maintenance and Operations Impact The majority of the new and ongoing projects listed in this CIP result in the improvement and/or replacement of existing facilities and equipment. In some cases, the operations and maintenance efforts and costs stay the same. However, in some instances: Some new equipment leads to reduced energy and maintenance costs due to higher efciency and fewer immediate repairs. Projects that introduce new facilities or equipment where none existed before may increase maintenance and operations costs.  City staff regularly assess these impacts and adjust stafng and budget allocations accordingly to meet the evolving needs of South San Francisco. Conclusion The FY 2025-26 CIP encompasses ongoing and new investments in the City’s infrastructure and operations, with an emphasis on cost efciency, proactive management, and regulatory compliance. This document provides a summary of the projects managed by Public Works for the continual betterment of all South San Francisco residents, businesses, and visitors in the coming scal year and beyond. City of South San Francisco | FY2025-26 Budget Book Page 334 Capital Improvement Program - 1-Year: FY2025-26 The chart below illustrates how the $24.03 million in requested capital project funding is distributed across various funding sources. Sources include local tax measures, development impact fees, and transfers of City funds. Understanding this breakdown helps highlight the City's efforts to leverage outside funding and minimize reliance on the General Fund.  Total Capital Requested 24 ,031,352 24 Capital Improvement Projects THe FY 2025-26 CIP includes a total of 24 project requiring new appropriations, amounting to  $24.03 million. These funding requests reect both new initiatives and continued investment in existing infrastructure.  Total Funding Requested by Source TOTAL $24,031,352.24 Bonds/Loans (4%)$865,073.24 Citywide Trafc Impact Fee (5%)$1,200,000.00 East of 101 Sewer Impact Fee (14%)$3,400,000.00 Gas Tax (1%)$220,000.00 Infrastructure Reserves (8%)$1,900,000.00 Measure A (8%)$2,030,000.00 Other Funding Sources (1%)$300,000.00 Park Land Construction (21%)$5,066,279.00 Road Maintenance Acct (SB1) (10%)$2,300,000.00 Sewer Enterprise (25%)$5,950,000.00 SMC Measure W (2%)$500,000.00 Successor Agency Funds (1%)$300,000.00 City of South San Francisco | FY2025-26 Budget Book Page 335 CIP Appropriations by City Fund The table below details the $24.03 million in new funding requests, categorized by City fund number. Each fund supports specic project types and departments, helping ensure that capital expenditures are tracked and managed according to their source and intended use.  CIP Appropriations by Project Type The following pie chart shows how $24.03 million in capital improvement project appropriations are distributed across key infrastructure categories. Sanitary Sewer projects make up the largest share of the CIP at $9.65 million or 40.16% of total appropriations, reecting continued investment in the City's wastewater systems. Others major allocations include Storm Drain improvements, Street repairs and Park upgrades.  Capital Improvement Plan by Project Type Sanitary Sewer $9,650,000 (40.16%) Streets $6,950,000 (28.92%) Parks $6,411,352 (26.68%) Trafc $1,000,000 (4.16%) Storm Drains $20,000 (0.08%) Public Facilities $0 (0.00%) City of South San Francisco | FY2025-26 Budget Book Page 336 Capital Improvement Plan Requests Itemized Requests for 2026 pk2301 Orange Memorial Park Main Playground Replacement (BONDS)$865,073 Surfacing and equipment replacement of main playground at Orange Memorial Park. Equipment to be replaced with inclusive elements for all-abilities.  pk2302 Centennial Trail Improvements $1,666,279 Construct park spaces along Centennial Trail. pk2305 Linden Park Project $300,000 Project to transform two adjacent vacant lots into a vibrant neighborhood park and cultural plaza for our community to enjoy.  pk2501 Dedicated Pickleball Courts $400,000 Addition of Pickleball courts to Orange Park; additional costs to add noise attenuation and improved surfacing. pk2601 Cypress and Pine Park Renovation Project $3,000,000 Improve and rehabilitate the existing Cypress and Pine Park with new play features, furnishings, landscape, and other improvements. pk2602 Playground Surfacing City Hall Tot Lot, Avalon Park, Westborough Park $180,000 Replacement of rubberized surfacing that has reached end of life and is degraded beyond patch repairs. sd1801 Orange Memorial Park Stormwater Capture Project $20,000 Design and construct a storm water capture device including pre-treatment system. ss2202 Oyster Point Pump Station $2,850,000 The project will design and construct a new pump station to support the development at Oyster Point. ss2601 Sanitary Sewer Rehab FY 2025-26 $5,800,000 Annual systematic rehabilitation of the sewer system gravity lines by sewer basins as determined by the sewer master plan and recent video inspection efforts prior to Surface Seal Area 2. ss2602 Harbor Way Sewer Main Upsize $500,000 Upgrade of sewer main due to capacity constraints. ss2603 Sanitary Sewer Pump Station Master Plan $500,000 Condition and Capacity assessment of all Pump Stations and associated force mains. st1703 Bridge Preventative Maintenance Program $200,000 This project will conduct preventative maintenance on nine (9) city-maintained bridges including: Colma Creek Bridge at Produce Avenue, Canal Bridge at Linden Avenue, two (2) bridges over San Bruno Channel over North Access Road, Colma Creek... st1904 Underground Utilities District (UUD) Rule 20A for Mission Road $1,500,000 Establish an Underground Utility District on Mission Road from Grand Avenue to connect with underground utilities at the South San Francisco BART south entrance. Additional funding is required to replace city-owned street lighting. st2301 Junipero Serra Boulevard/Westborough Boulevard Corridor Feasibility Project $200,000 The City applied for SMCTA Bike / Ped Cycle 6 grant funding to fund the planning of the Junipero Serra Blvd and Westborough Blvd Bike and Ped improvements as identied in the Active South City Plan. The City was awarded funding for the rst year... City of South San Francisco | FY2025-26 Budget Book Page 337 st2505 2026 Surface Seal Project $3,300,000 This project will provide asphalt pavement maintenance from design through construction in Area 2 (Sierra Highlands neighborhood) of the Pavement Management Program (PMP). The PMP cycles through Areas 1 to 5, providing a new surface seal of... st2601 Tanforan Ave Reconstruction $100,000 Reconstruction of Tanforan Ave between San Mateo Ave and Railroad Place. st2602 Citywide Misc Striping $300,000 This project includes the installation, replacement, and maintenance of roadway striping and pavement markings at various locations citywide. st2603 Citywide Trip Hazard $150,000 Funds to be used to mitigate trip hazards identied as part of the trip hazard assessment. st2604 2027 Surface Seal $200,000 Street surface treatments with base repairs in preparation of 2027 surface seal project.  st2605 2026 Pavement Repair and Crack Seal $1,000,000 Roadway distress such as cracks, pumping, pushing, wheel rutting, raveling, and pot holing in the asphalt concrete (AC) pavement are defects that need to be addressed in a timely manner. A preventive maintenance program that includes repairs to... tr2002 Smart Corridor $350,000 Implementation of Intelligent Transportation System (ITS) along segment of 101 corridor north of I-380. tr2301 Miscellaneous Trafc Improvements $250,000 Design & construct any trafc related improvements in the City, such as striping, signs, and other trafc calming measures from the Trafc Advisory Committee, Neighborhood meetings or as needed. tr2406 Trafc Studies and Grant Support $100,000 Support for any trafc-related studies from the Trafc Advisory Committee, Neighborhood meetings or as needed, and support for grant applications as needed. tr2415 COLMA/SSF ECR BICYCLE & PED IMPROVEMENT $300,000 Project advances key elements of the Bike/Ped Master Plan. Colma is leading the effort and has secured a TA grant. Caltrans asked the project scope be extended to include the segment from the previous project limits to Hickey Boulevard and El... Total:$24,031,352 City of South San Francisco | FY2025-26 Budget Book Page 338 Capital Improvement Program - 5-Year: FY2023-24 to FY2027-28 Total Capital Requested 52,831,352 184 Capital Improvement Projects Total Funding Requested by Source Bonds/Loans City Programs/Contributions Citywide Trafc Impact Fee East of 101 Sewer Impact Fee Gas Tax Infrastructure Reserves Measure A Other Funding Sources Park Land Construction Road Maintenance Acct (SB1) Sewer Enterprise SMC Measure W Successor Agency Funds 2026 2027 2028 $24,031,352.24 $18,400,000.00 $10,400,000.00 $0 $24M$6M $12M $18M City of South San Francisco | FY2025-26 Budget Book Page 339 Capital Improvement Plan Requests Itemized Requests for 2026-2028 pf2306 Civic Campus Phase III: Fire Station 63 $18,000,000 Design and construction of a new re station at 73 Camaritas Ave., a parcel owned by the City.   The current station is undersized and located in the basement of a building that is in the process of being vacated. The new station... pk2301 Orange Memorial Park Main Playground Replacement (BONDS)$865,073 Surfacing and equipment replacement of main playground at Orange Memorial Park. Equipment to be replaced with inclusive elements for all-abilities.  pk2302 Centennial Trail Improvements $1,666,279 Construct park spaces along Centennial Trail. pk2305 Linden Park Project $300,000 Project to transform two adjacent vacant lots into a vibrant neighborhood park and cultural plaza for our community to enjoy.  pk2501 Dedicated Pickleball Courts $400,000 Addition of Pickleball courts to Orange Park; additional costs to add noise attenuation and improved surfacing. pk2601 Cypress and Pine Park Renovation Project $3,000,000 Improve and rehabilitate the existing Cypress and Pine Park with new play features, furnishings, landscape, and other improvements. pk2602 Playground Surfacing City Hall Tot Lot, Avalon Park, Westborough Park $180,000 Replacement of rubberized surfacing that has reached end of life and is degraded beyond patch repairs. sd1801 Orange Memorial Park Stormwater Capture Project $20,000 Design and construct a storm water capture device including pre-treatment system. ss2001 Sanitary Sewer Rehabilitation $2,000,000 Ongoing maintenance required for sanitary sewer per the Sanitary Sewer Master Plan. ss2202 Oyster Point Pump Station $2,850,000 The project will design and construct a new pump station to support the development at Oyster Point. ss2601 Sanitary Sewer Rehab FY 2025-26 $5,800,000 Annual systematic rehabilitation of the sewer system gravity lines by sewer basins as determined by the sewer master plan and recent video inspection efforts prior to Surface Seal Area 2. ss2602 Harbor Way Sewer Main Upsize $500,000 Upgrade of sewer main due to capacity constraints. ss2603 Sanitary Sewer Pump Station Master Plan $500,000 Condition and Capacity assessment of all Pump Stations and associated force mains. st1703 Bridge Preventative Maintenance Program $200,000 This project will conduct preventative maintenance on nine (9) city-maintained bridges including: Colma Creek Bridge at Produce Avenue, Canal Bridge at Linden Avenue, two (2) bridges over San Bruno Channel over North Access Road, Colma Creek... st1904 Underground Utilities District (UUD) Rule 20A for Mission Road $1,500,000 Establish an Underground Utility District on Mission Road from Grand Avenue to connect with underground utilities at the South San Francisco BART south entrance. Additional funding is required to replace city-owned street lighting. City of South San Francisco | FY2025-26 Budget Book Page 340 st2301 Junipero Serra Boulevard/Westborough Boulevard Corridor Feasibility Project $8,200,000 The City applied for SMCTA Bike / Ped Cycle 6 grant funding to fund the planning of the Junipero Serra Blvd and Westborough Blvd Bike and Ped improvements as identied in the Active South City Plan. The City was awarded funding for the rst year... st2505 2026 Surface Seal Project $3,300,000 This project will provide asphalt pavement maintenance from design through construction in Area 2 (Sierra Highlands neighborhood) of the Pavement Management Program (PMP). The PMP cycles through Areas 1 to 5, providing a new surface seal of... st2601 Tanforan Ave Reconstruction $100,000 Reconstruction of Tanforan Ave between San Mateo Ave and Railroad Place. st2602 Citywide Misc Striping $300,000 This project includes the installation, replacement, and maintenance of roadway striping and pavement markings at various locations citywide. st2603 Citywide Trip Hazard $150,000 Funds to be used to mitigate trip hazards identied as part of the trip hazard assessment. st2604 2027 Surface Seal $200,000 Street surface treatments with base repairs in preparation of 2027 surface seal project.  st2605 2026 Pavement Repair and Crack Seal $1,000,000 Roadway distress such as cracks, pumping, pushing, wheel rutting, raveling, and pot holing in the asphalt concrete (AC) pavement are defects that need to be addressed in a timely manner. A preventive maintenance program that includes repairs to... tr2002 Smart Corridor $350,000 Implementation of Intelligent Transportation System (ITS) along segment of 101 corridor north of I-380. tr2301 Miscellaneous Trafc Improvements $650,000 Design & construct any trafc related improvements in the City, such as striping, signs, and other trafc calming measures from the Trafc Advisory Committee, Neighborhood meetings or as needed. tr2406 Trafc Studies and Grant Support $500,000 Support for any trafc-related studies from the Trafc Advisory Committee, Neighborhood meetings or as needed, and support for grant applications as needed. tr2415 COLMA/SSF ECR BICYCLE & PED IMPROVEMENT $300,000 Project advances key elements of the Bike/Ped Master Plan. Colma is leading the effort and has secured a TA grant. Caltrans asked the project scope be extended to include the segment from the previous project limits to Hickey Boulevard and El... Total:$52,831,352 City of South San Francisco | FY2025-26 Budget Book Page 341 DEBT City of South San Francisco | FY2025-26 Budget Book Page 342 City of South San Francisco | FY2025-26 Budget Book Page 343 Debt Service Obligations The City has outstanding debt through the issuance of bonds, loans and leases. The legal bonded debt limit for the City as of June 30, 2024 was $1.16 billion which is calculated as 3.75%* of the total market-value-based assessed property valuation of $30.9 billion. The City's total outstanding debt is well below this limit. The following sections describe all debt issued by the City for which balances remain outstanding (amounts shown are as of June 30, 2025): Water Quality Control Plant 2004 and 2008 State Water Resources Control Board Loans – Original debt:$30,423,034; 2.4% to 2.5% interest rate; due 4/30/2026 and 7/15/2028. These loans were used to improve and expand the City’s Water Quality Control Plant (WQCP). Loan proceeds were issued as projects progressed. Debt service payment commenced one year after project completion. WQCP user fees support the debt service payments. $3.6 million of principal remains outstanding. $167,000 interest remains to be paid until maturity. 2005D Water and Wastewater Revenue Bonds – Original debt: $6,000,000, 2.75% to 4.75% interest rate, due 10/01/2026. Standard & Poor bond rating was AAA. The City participated in a pooled bond sale. The bonds were used to nance sewer system capital improvement projects. The debt service is paid from the net revenues of the City’s Sewer Enterprise Fund. Of the total, $850,000 of principal remains outstanding. $43,000 interest remains to be paid until maturity. 2018 State Water Resources Control Board Loan - Original debt: $53,403,000, 1.8% interest rate, due 10/03/2042. The loan proceeds are being used for the WQCP Wet Weather and Digester project. Loan proceeds have been issued over time as projects progressed. Debt service payments commenced on 10/03/2023, one year after project completion. WQCP user fees support the debt service payments. $46.9 million of principal remains outstanding. $8.4 million interest remains to be paid until maturity. Capital Improvement Projects  2020A Lease Revenue Bonds - Original debt: $43,905,000; premium received: $10,242,530; 4 - 5% interest rate; due 06/01/2046. Standard & Poor bond rating was AA+. The bonds were used for Phase I of the Civic Center Campus project consisting of the planning and construction of a new Police Station and Dispatch Center for the City of South San Francisco. Measure W sales tax revenue will fund the repayments. $38.7 million of principal remains outstanding.  $19.3 million interest remains to be paid until maturity. 2021A Lease Revenue Bonds - Original debt: $86,410,000; premium received: $18,116,565; 4% interest rate; due 06/01/2046. Standard & Poor bond rating was AA+. $78,000,000 of the bond proceeds are to be used for Phase II of the Civic Center Campus project consisting of the design and construction of the new library, parks and recreation center, council chambers and landscaping of the immediate surrounding area. $24,000,000 will be used for road pavement rehabilitation throughout the City, and $2,000,000 will be used for solar roof installation at the City's Corporation Yard. Measure W sales tax revenue will fund the repayments. $77.5 million of principal remains outstanding. $38.5 million interest remains to be paid until maturity. 2022A Lease Revenue Bonds - Original debt: $65,420,000; premium paid $6,686,317; 4-5.25% interest rate; due 06/01/2046. Standard & Poor bond rating was AA+. $49,000,000 of the bond proceeds are to be used to design and construct the new Aquatic Center to replace the City's aging swimming pool building, $12,300,000 will be used to help fund construction of the new balleld at Orange Memorial Park, $2,200,000 will be used to help fund replacement of the playground and $1,500,000 to replace the two Colma Creek bridges at Orange Memorial Park. Measure W sales tax revenue will fund the repayments from FY2024-25. $63.7 million of principal remains outstanding. $40.1 million interest remains to be paid until maturity. Successor Agency 2007 Loans Payable to Successor Agency - As of June 30, 2024, the Oyster Point Interchange Impact Fees Fund owed the Successor Agency for developer fees for the Flyover and Hookramps Capital projects that were completed in prior years. The outstanding balance of $1,166,152 will be paid off from future developer impact fees collected by the City.   * California Government Code, Section 43605 sets the debt limit at 15%. The code section was enacted prior to the change in basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is one-fourth the limit to account for the adjustment of showing assessed valuation at full cash value. City of South San Francisco | FY2025-26 Budget Book Page 344 City of South San Francisco | FY2025-26 Budget Book Page 345 APPENDIX City of South San Francisco | FY2025-26 Budget Book Page 346 Glossary Abatement: A reduction or elimination of a real or personal property tax, motor vehicle excise, a fee, charge, or special assessment imposed by a governmental unit. Granted only on application of the person seeking the abatement and only by the committing governmental unit. Accounting System: The total structure of records and procedures that identify record, classify, and report information on the nancial position and operations of a governmental unit or any of its funds, account groups, and organizational components. Accrued Interest: The amount of interest that has accumulated on the debt since the date of the last interest payment, and on the sale of a bond, the amount accrued up to but not including the date of delivery (settlement date). (See Interest) Annual Comprehensive Financial Report (ACFR): report produced every year summarizing audited nancial information for the City  Amortization: The gradual repayment of an obligation over time and in accordance with a predetermined payment schedule. Appropriation: A legal authorization from the community's legislative body to expend money and incur obligations for specic public purposes. An appropriation is usually limited in amount and as to the time period within which it may be expended.  Arbitrage: As applied to municipal debt, the investment of tax-exempt bonds or note proceeds in higher yielding, taxable securities. Section 103 of the Internal Revenue Service (IRS) Code restricts this practice and requires (beyond certain limits) that earnings be rebated (paid) to the IRS. Assessed Valuation: A value assigned to real estate or other property by a government as the basis for levying taxes. Audit: An examination of a community's nancial systems, procedures, and data by a certied public accountant (independent auditor), and a report on the fairness of nancial statements and on local compliance with statutes and regulations. The audit serves as a valuable management tool in evaluating the scal performance of a community. Audit Report: Prepared by an independent auditor, an audit report includes: (a) a statement of the scope of the audit; (b) explanatory comments as to application of auditing procedures; (c) ndings and opinions. It is almost always accompanied by a management letter which contains supplementary comments and recommendations. Available Funds: Balances in the various fund types that represent non-recurring revenue sources. As a matter of sound practice, they are frequently appropriated to meet unforeseen expenses, for capital expenditures or other one-time costs.  Balance Sheet: A statement that discloses the assets, liabilities, reserves and equities of a fund or governmental unit at a specied date. Betterments (Special Assessments): Whenever a specic area of a community receives benet from a public improvement (e.g., water, sewer, sidewalk, etc.), special property taxes may be assessed to reimburse the governmental entity for all or part of the costs it incurred. Each parcel receiving benet from the improvement is assessed for its proportionate share of the cost of such improvements. The proportionate share may be paid in full or the property owner may request that the assessors apportion the betterment over 20 years. Over the life of the betterment, one year’s apportionment along with one year’s committed interest computed from October 1 to October 1 is added to the tax bill until the betterment has been paid. Bond: A means to raise money through the issuance of debt. A bond issuer/borrower promises in writing to repay a specied sum of money, alternately referred to as face value, par value or bond principal, to the buyer of the bond on a specied future date (maturity date), together with periodic interest at a specied rate. The term of a bond is always greater than one year. (See Note) Bond and Interest Record: (Bond Register) – The permanent and complete record maintained by a treasurer for each bond issue. It shows the amount of interest and principal coming due each date and all other pertinent information concerning the bond issue. Bonds Authorized and Unissued: Balance of a bond authorization not yet sold. Upon completion or abandonment of a project, any remaining balance of authorized and unissued bonds may not be used for other purposes, but must be rescinded by the community's legislative body to be removed from community's books. Bond Issue: Generally, the sale of a certain number of bonds at one time by a governmental unit. City of South San Francisco | FY2025-26 Budget Book Page 347 Bond Rating (Municipal): A credit rating assigned to a municipality to help investors assess the future ability, legal obligation, and willingness of the municipality (bond issuer) to make timely debt service payments. Stated otherwise, a rating helps prospective investors determine the level of risk associated with a given xed-income investment. Rating agencies, such as Moody's and Standard and Poors, use rating systems, which designate a letter or a combination of letters and numerals where AAA is the highest rating and C1 is a very low rating. Budget: A plan for allocating resources to support particular services, purposes and functions over a specied period of time. (See Performance Budget, Program Budget) Capital Assets: All real and tangible property used in the operation of government, which is not easily converted into cash, and has an initial useful live extending beyond a single nancial reporting period. Capital assets include land and land improvements; infrastructure such as roads, bridges, water and sewer lines; easements; buildings and building improvements; vehicles, machinery and equipment. Communities typically dene capital assets in terms of a minimum useful life and a minimum initial cost. (See Fixed Assets) Capital Budget: An appropriation or spending plan that uses borrowing or direct outlay for capital or xed asset improvements. Among other information, a capital budget should identify the method of nancing each recommended expenditure, i.e., tax levy or rates, and identify those items that were not recommended. (See Capital Assets, Fixed Assets) Cash: Currency, coin, checks, postal and express money orders and bankers’ drafts on hand or on deposit with an ofcial or agent designated as custodian of cash and bank deposits. Cash Management: The process of monitoring the ebb and ow of money in an out of municipal accounts to ensure cash availability to pay bills and to facilitate decisions on the need for short- term borrowing and investment of idle cash. Certicate of Deposit (CD): A bank deposit evidenced by a negotiable or non-negotiable instrument, which provides on its face that the amount of such deposit plus a specied interest payable to a bearer or to any specied person on a certain specied date, at the expiration of a certain specied time, or upon notice in writing. Classication of Real Property: Assessors are required to classify all real property according to use into one of four classes: residential, open space, commercial, and industrial. Having classied its real properties, local ofcials are permitted to determine locally, within limitations established by statute and the Commissioner of Revenue, what percentage of the tax burden is to be borne by each class of real property and by personal property owners. Collective Bargaining: The process of negotiating workers' wages, hours, benets, working conditions, etc., between an employer and some or all of its employees, who are represented by a recognized labor union. regarding wages, hours and working conditions. Consumer Price Index: The statistical measure of changes, if any, in the overall price level of consumer goods and services. The index is often called the "cost-of-living index." Cost-Benet Analysis: A decision-making tool that allows a comparison of options based on the level of benet derived and the cost to achieve the benet from different alternatives. Debt Burden: The amount of debt carried by an issuer usually expressed as a measure of value (i.e., debt as a percentage of assessed value, debt per capita, etc.). Sometimes debt burden refers to debt service costs as a percentage of the total annual budget. Debt Service: The repayment cost, usually stated in annual terms and based on an amortization schedule, of the principal and interest on any particular bond issue. Encumbrance: A reservation of funds to cover obligations arising from purchase orders, contracts, or salary commitments that are chargeable to, but not yet paid from, a specic appropriation account. Enterprise Funds: An enterprise fund is a separate accounting and nancial reporting mechanism for municipal services for which a fee is charged in exchange for goods or services. It allows a community to demonstrate to the public the portion of total costs of a service that is recovered through user charges and the portion that is subsidized by the tax levy, if any. With an enterprise fund, all costs of service delivery--direct, indirect, and capital costs—are identied. This allows the community to recover total service costs through user fees if it chooses. Enterprise accounting also enables communities to reserve the City of South San Francisco | FY2025-26 Budget Book Page 348 "surplus" or net assets unrestricted generated by the operation of the enterprise rather than closing it out to the general fund at year-end. Services that may be treated as enterprises include, but are not limited to, water, sewer, hospital, and airport services.  Equalized Valuations (EQVs): The determination of the full and fair cash value of all property in the community that is subject to local taxation.  Estimated Receipts: A term that typically refers to anticipated local revenues often based on the previous year's receipts and represent funding sources necessary to support a community's annual budget. (See Local Receipts) Exemptions: A discharge, established by statute, from the obligation to pay all or a portion of a property tax. The exemption is available to particular categories of property or persons upon the timely submission and approval of an application to the assessors. Properties exempt from taxation include hospitals, schools, houses of worship, and cultural institutions. Persons who may qualify for exemptions include disabled veterans, blind individuals, surviving spouses, and seniors. Expenditure: An outlay of money made by municipalities to provide the programs and services within their approved budget. Fiduciary Funds: Repository of money held by a municipality in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and other funds. These include pension (and other employee benet) trust funds, investment trust funds, private- purpose trust funds, and agency funds. Fixed Assets: Long-lived, assets such as buildings, equipment and land obtained or controlled as a result of past transactions or circumstances. Fixed Costs: Costs that are legally or contractually mandated such as retirement, FICA/Social Security, insurance, debt service costs or interest on loans. Float: The difference between the bank balance for a local government’s account and its book balance at the end of the day. The primary factor creating oat is clearing time on checks and deposits. Delays in receiving deposit and withdrawal information also inuence oat. Full Faith and Credit: A pledge of the general taxing powers for the payment of governmental obligations. Bonds carrying such pledges are usually referred to as general obligation or full faith and credit bonds. Fund: An accounting entity with a self-balancing set of accounts that are segregated for the purpose of carrying on identied activities or attaining certain objectives in accordance with specic regulations, restrictions, or limitations. Fund Accounting: Organizing nancial records into multiple, segregated locations for money. A fund is a distinct entity within the municipal government in which nancial resources and activity (assets, liabilities, fund balances, revenues, and expenditures) are accounted for independently in accordance with specic regulations, restrictions or limitations. Examples of funds include the general fund and enterprise funds. Communities whose accounting records are organized according to the Uniform Municipal Accounting System (UMAS) use multiple funds. Fund Balance: The fund balance is used to describe the net position of governmental funds as calculated in accordance with GAAP. The budget year estimated fund balance includes prior year actual fund balance plus estimated revenues minus the expenditure budget. Long-term liabilities including Pension, OPEB, and debt (bonds and loans) are excluded from fund balance.  GASB 34: A major pronouncement of the Governmental Accounting Standards Board that establishes new criteria on the form and content of governmental nancial statements. GASB 34 requires a report on overall nancial health, not just on individual funds. It requires more complete information on the cost of delivering value estimates on public infrastructure assets, such as bridges, road, sewers, etc. It also requires the presentation of a narrative statement the government's nancial performance, trends and prospects for the future. GASB 45: This is another Governmental Accounting Standards Board major pronouncement that each public entity account for and report other postemployment benets in its accounting statements. Through actuarial analysis, municipalities must identify the true costs of the OPEB earned by employees over their estimated years of actual service. General Fund: The fund used to account for most nancial resources and activities governed by the normal appropriation process. City of South San Francisco | FY2025-26 Budget Book Page 349 General Obligation Bonds: Bonds issued by a municipality for purposes allowed by statute that are backed by the full faith and credit of its taxing authority. Governing Body: A board, committee, commission, or other executive or policymaking bodyof a municipality or school district. Indirect Cost: Costs of a service not reected in the operating budget of the entity providing the service. An example of an indirect cost of providing water service would be the value of time spent by non-water department employees processing water bills. A determination of these costs is necessary to analyze the total cost of service delivery. The matter of indirect costs arises most often in the context of enterprise funds. Interest: Compensation paid or to be paid for the use of money, including amounts payable at periodic intervals or discounted at the time a loan is made. In the case of municipal bonds, interest payments accrue on a day-to-day basis, but are paid every six months. Interest Rate: The interest payable, expressed as a percentage of the principal available for use during a specied period of time. It is always expressed in annual terms. Investments: Securities and real estate held for the production of income in the form of interest, dividends, rentals or lease payments. The term does not include xed assets used in governmental operations. Line Item Budget: A budget that separates spending into categories, or greater detail, such as supplies, equipment, maintenance, or salaries, as opposed to a program budget. Local Aid: Revenue allocated by the state or counties to municipalities and school districts. Maturity Date: The date that the principal of a bond becomes due and payable in full. Municipal(s): (As used in the bond trade) "Municipal" refers to any state or subordinate governmental unit. "Municipals" (i.e., municipal bonds) include not only the bonds of all political subdivisions, such as cities, towns, school districts, special districts, counties but also bonds of the state and agencies of the state. Note: A short-term loan, typically with a maturity date of a year or less. Objects of Expenditures: A classication of expenditures that is used for coding any department disbursement, such as “personal services,” “expenses,” or “capital outlay.” Ofcial Statement: A document prepared for potential investors that contains information about a prospective bond or note issue and the issuer. The ofcial statement is typically published with the notice of sale. It is sometimes called an offering circular or prospectus. Operating Budget: A plan of proposed expenditures for personnel, supplies, and other expenses for the coming scal year. Overlapping Debt: A community's proportionate share of the debt incurred by an overlapping government entity, such as a regional school district, regional transit authority, etc. Performance Budget: A budget that stresses output both in terms of economy and efciency. Principal: The face amount of a bond, exclusive of accrued interest. Program: A combination of activities to accomplish an end. Program Budget: A budget that relates expenditures to the programs they fund. The emphasis of a program budget is on output. Purchased Services: The cost of services that are provided by a vendor. Refunding of Debt: Transaction where one bond issue is redeemed and replaced by a new bond issue under conditions generally more favorable to the issuer. Reserve Fund: An amount set aside annually within the budget of a town to provide a funding source for extraordinary or unforeseen expenditures.  City of South San Francisco | FY2025-26 Budget Book Page 350 Revaluation: The assessors of each community are responsible for developing a reasonable and realistic program to achieve the fair cash valuation of property in accordance with constitutional and statutory requirements. The nature and extent of that program will depend on the assessors’ analysis and consideration of many factors, including, but not limited to, the status of the existing valuation system, the results of an in-depth sales ratio study, and the accuracy of existing property record information.  Revenue Anticipation Note (RAN): A short-term loan issued to be paid off by revenues, such as tax collections and state aid. RANs are full faith and credit obligations. Revenue Bond: A bond payable from and secured solely by specic revenues and thereby not a full faith and credit obligation. Revolving Fund: Allows a community to raise revenues from a specic service and use those revenues without appropriation to support the service.  Sale of Real Estate Fund: A fund established to account for the proceeds of the sale of municipal real estate other than proceeds acquired through tax title foreclosure. Stabilization Fund: A fund designed to accumulate amounts for capital and other future spending purposes, although it may be appropriated for any lawful purpose. Surplus Revenue: The amount by which cash, accounts receivable, and other assets exceed liabilities and reserves. Tax Rate: The amount of property tax stated in terms of a unit of the municipal tax base; for example, $14.80 per $1,000 of assessed valuation of taxable real and personal property. Tax Title Foreclosure: The procedure initiated by a municipality to obtain legal title to real property already in tax title and on which property taxes are overdue. Trust Fund: In general, a fund for money donated or transferred to a municipality with specic instructions on its use. As custodian of trust funds, the treasurer invests and expends such funds as stipulated by trust agreements, as directed by the commissioners of trust funds or by the community's legislative body. Both principal and interest may be used if the trust is established as an expendable trust. For nonexpendable trust funds, only interest (not principal) may be expended as directed. Uncollected Funds: Recently deposited checks included in an account’s balance but drawn on other banks and not yet credited by the Federal Reserve Bank or local clearinghouse to the bank cashing the checks. (These funds may not be loaned or used as part of the bank’s reserves and they are not available for disbursement.) Undesignated Fund Balance: Monies in the various government funds as of the end of the scal year that are neither encumbered nor reserved, and are therefore available for expenditure once certied as part of free cash. Unreserved Fund Balance (Surplus Revenue Account): The amount by which cash, accounts receivable, and other assets exceed liabilities and restricted reserves. It is akin to a "stockholders’ equity" account on a corporate balance sheet. It is not, however, available for appropriation in full because a portion of the assets listed as "accounts receivable" may be taxes receivable and uncollected. (See Free Cash) Valuation (100 Percent): The legal requirement that a community’s assessed value on property must reect its market, or full and fair cash value. City of South San Francisco | FY2025-26 Budget Book Page 351 APPROPRIATIONS LIMIT ------------------------------------------------------------------------------------------------------------------------------- City of South San Francisco FY 2025-26 Proposed Operating Budget APPROPRIATIONS LIMITS In 1979, California voters approved Proposition 4, known as the Gann Appropriations Limit (Gann Limit). The Gann Limit is part of California State Constitution Article XIIIB. The Gann Limit sets an annual appropriation ceiling on the amount of tax proceeds to all California municipalities. In addition to limits of tax proceeds, the Gann Limit restricts the amount of money a city can appropriate based on the previous year appropriations plus a per capita personal income (CPI) change and a percent population change. Since its initial passage, the Gann Limit has been modified through various propositions. The voters approved the most recent modification in 1990 under Proposition 111. Proposition 111 exempted some appropriations such as Redevelopment money and changed the calculation formula, which greatly increased the appropriations limit. Currently, the City of South San Francisco uses the California Department of Finance percentage change of Per Capita Cost of Living and percent population change to formulate the Gann Limit for the City for each fiscal year.