HomeMy WebLinkAbout02.24.2020 SP Minutes @2:30MINUTES
SPECIAL MEETING
0
BUDGET STANDING
A
� y
COMMITTEE
c9L7FOOF THE
CITY OF SOUTH SAN FRANCISCO
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, California 94083
Meeting to be held at:
CITY HALL
CITY MANAGER'S CONFERENCE
ROOM
400 GRAND AVENUE
SOUTH SAN FRANCISCO, CA
MONDAY, FEBRUARY 24, 2020
2:30 p.m.
Call to Order. Time: 2:30 p.m.
Roll Call. PRESENT: Councilmember Nicolas and
Vice Mayor Addiego.
AGENDA REVIEW
No changes
PUBLIC COMMENTS
None
MATTERS FOR CONSIDERATION
1. Motion to approve the Minutes for the meeting of January 6, 2020.
MOTION - Councilmember Nicolas Second -Vice Mayor Addiego to approve the minutes from the
meeting of January 6, 2020. The motion carried unanimously.
2. Report regarding Fiscal Year 2019-20 mid -year budget. (Janet Salisbury, Finance Director)
Finance Director Salisbury introduced the item and provided an overview of the City of South San
Francisco's Fiscal Year (FY) 2019-20 mid -year budget. Council adopted FY 2019-20 budget projected.
revenues of almost $113.9 million. Once prior year encumbrances of approximately $11.9 million were
taken into account, the total Council adopted FY 2019-20 revenue budget was $125.8 million.
Subsequent Council actions from July 2019 through January 2020 increased the budgeted revenues by
approximately $1 million, making the total FY 2019-20 budget $127.6 million. Staff was conservatively
projecting that based upon actual revenue receipts through December 2019, City revenues were on track
to meet that budgeted revenue target of $127.6 million.
She indicated that staff was closely monitoring the Transit Occupancy Tax (TOT) due to travel
restrictions associated with the Coronavirus. The San Francisco International Airport was a hub for
worldwide business travel, and local hotels had reported room cancellations by visitors from China.
However, taking the potential impacts of the virus into consideration, TOT collections were on track to
meet the adopted budget revenue projection of $16.9 million based upon 6 -month actual results.
The Council adopted budget expenditures for FY 2019-20 was $111.6 million. Subsequent
Council actions from 2019 through January 2020, along with the "carryover encumbrances" have
increased the budgeted expenditures to $125.5 million. Staff was conservatively projecting that based
upon actual expenditures through December 2020, City Departments were on track not to exceed their
budgeted expenditures.
Based upon a review of mid -year results and accounting reconciliations, the General Fund surplus for FY
2019-20 at mid -year was approximately $2.2 million ($127,663,906 revenues minus $125,459,243
expenditures equals $2,174,663). This surplus was driven by reconciliations as it related prior year
encumbrances. Staff informed Council as part of year-end results for FY 2018-19 that expenditure
overages vs. budget in the Economic Community and Development Department ($1,874,616) and Public
Works ($319,002) was a timing issue based upon encumbrances made in the prior fiscal year and that it
would normalize in FY 2019-20. The surplus being recognized was a result of the encumbrance
reconciliations (along with other minor accounting clean-ups).
Vice Mayor Addiego inquired about the City was being exceedingly conservative on their projections
adopted on the amended budget when it came to property tax. Finance Director Salisbury informed the
committee members that they were looking at a six month performance of what was collected. Finance
Director Salisbury informed committee members that the City would come at year end and do the general
fund surplus. She advised that the City would also keep the TOT flat due to Coronavirus concerns and
using the potential growth on the property to tax to soften the blow of the TOT.
Vice Mayor Addiego suggested staff to look back at the time of SARS before coming back to the City
Council for adoption. He believed hotels were also impacted during that time.
Finance Director Salisbury presented the General Fund mid -year budget requests from Fire Department.
She stated $138,272 were requested for CAL OES reimbursable in-state mutual aid deployment to the
2019 Kincaid Fire and $13,220 were requested for Meals Ready to Eat (MRE) and bottled water for the
Emergency Operations Center.
The Public Works Department requested $50,000 for replacement of damaged "Birthplace of
Biotechnology" sign and $1,500,000 CIP Linden Avenue Complete Streets: Pedestrian, bike, and ADA
improvements. Finance Director Salisbury informed committee members that the following were
transfers out to Capital Improvement.
1. $80,000 — Traffic improvement study, review, and implementation
2. $75,000 — Design of medians along El Camino Real between Spruce and Chestnut
3. Budget Neutral - $104,258 — Gardiner Park update
SPECIAL BUDGET STANDING COMMITTEE MEETING FEBRUARY 24, 2020
MINUTES PAGE 2
Finance Director Salisbury presented committee members other funds mid -year budget requests:
City Housing Fund
1. Budget Neutral - $30,000 Homeless prevention via YMCA's rent assistance program
Sewer Enterprise Fund
1. $75,000 Repair of sewer main and laterals along S. Maple and Spruce Avenue
Storm Water Fund
1. $150,000 Storm Water Fund — Long-term flood prevention measures near the end of San Bruno
canal storm main owned and operated by the City
E 101 Traffic Impact Fee
1. $125,000 Fund Bay Trail required access route improvements
2. $150,000 Survey and design East Grand Avenue Bicycle gap
3. $150,000 Improvements required by the BCDC along S. Airport Boulevard and Belle Aire Road
Vice Mayor Addiego requested clarification on the Irish Green project. City Manager Futrell stated that at
the CDBG presentation in February 18, 2020, staff had upped the funding from $130,000 to $146,000 to
give the project what they needed to complete phase 1 and phase 2 of the project. City Manager Futrell
informed there was a theoretical phase 3 in which the Parks and Recreation Department does not
recommend they do which included adding a dog park.
Councilmember Nicolas inquired whether residents were able to play soccer on the field after phase 2 was
complete. City Manager Futrell confirmed that residents were able to play soccer on the field but stated
the City would not advertise the field for such activity.
City Manager Futrell informed the committee members that hoteliers had informed him of tour groups
and business travel from China had been cancelling reservations due to the Coronavirus. He believed he
had not seen a reflection on TOT collections as of yet.
Councilmember Nicolas asked how one could change the business categories for a business license. City
Manager Futrell advised that the process itself would have to go through the voters as it was a tax. He
stated Finance was putting together a consultant to come up with a plan and present it to the Budget
Standing Committee by July to place on the November ballot.
Councilmember Nicolas inquired the cost of placing the item on the November ballot. City Manager
Futrell stated the cost would be minimal due to the November ballot containing numerous items.
Vice Mayor Addiego recommended that staff reach out to the community and inform the small businesses
of the proposed measure.
Councilmember Nicolas asked for the current number of business licenses issued in South San Francisco.
Management Analyst II Enders stated there were around 5,000 active business licenses in the City.
SPECIAL BUDGET STANDING COMMITTEE MEETING FEBRUARY 24, 2020
MINUTES PAGE 3
ADJOURNMENT
Being no further business, Vice Mayor Addiego adjourned the meeting at 3:18 p.m.
Submitted by:
Gabri�o�eputy City Clerk
Cit c�f..S� Francisco
Approved by the Budget Standing Committee:
Approved by:
Mark Addiego, Vice M or
City of South San Francisco
SPECIAL BUDGET STANDING COMMITTEE MEETING FEBRUARY 24, 2020
MINUTES PAGE 4