►
Description
San Bruno City Council Meeting May 25, 2021
6a. Third-Quarter Financial Update Report for FY 2020-21
A
And
so
we
will
go
back,
we're
still
on
conduct
of
business,
but
let's
go
back
to
item
a
and
read
that
quickly
and
again,
as
you
know,
that
was
received.
The
third
quarter,
financial
update
report
for
20
20
21.
As
of
march
31st
2021,
adopt
a
resolution
approving
the
third
quarter
budget
amendment
for
fiscal
year,
2020,
2020-21
operating
and
capital
budget
turn
it
over
to
the
city
manager
and
then
the
finance
director
and
again,
if
we
could
hold
our
questions
until
the
end
of
the
presentation.
B
B
B
B
And
again,
we're
going
to
talk
about
the
court.
Third
quarter
of
this
fiscal
year,
which
starts
from
january
2021
ends
in
march
2021,
and
here
is
the
general
fund's
budget
overview
and,
if
you
do
remember
in
when
the
current
year's
budget
was
adopted,
we're
estimating
48.7
million
in
revenues
for
the
general
fund
at
49.3
million
in
expenditures.
B
Here
is
a
look
of
the
general
fund's
revenue,
summary
and
expenditures
and
general
fund
revenue
is
relatively
diversified
and
25
percent
of
the
general
revenue
came
from
property
tax
and
then
another
transfers
and
then
other
revenues
account
about
21
of
the
general
fund
revenue.
That's
the
second
largest
item.
The
third
one
is
sales
tax
by
13
percent
expenditure.
Size
will
not
so
diversify
the
most.
Our
expenditures
are
coming
from
staffing,
related
costs
by
department
and
safety
means
police
and
fire
departments
account
over
47
of
the
general
funding
expenditures.
B
Here's
a
third
quarter,
general
fund
update
as
of
general.
As
of
the
march
31st,
we
are
looking
at
the
entire
in
as
in
we
estimate
as
of
year
and
will
receive
about
50
million
dollars
in
revenue
for
general
funds
and
then
just
around
48
million
dollar
expenditures
operationalized
and
we're
actually
going
to
see
ray
with
operational
activity,
we're
going
to
see
about
a
million
dollars
in
surplus
this
year
and
will
end
the
year
with
a
fund
balance
of
the
two
point:
almost
2.4
million
dollars.
B
Here
is
a
look
at
the
general
fund
revenue
for
this
fiscal
year.
We
did
amend
the
general
fund
revenue
by
making
several
cuts
and
I'll
talk
about
castle
in
a
few
minutes
later.
So
as
of
right
now
we're
anticipating
the
amended
budget,
the
the
revenue
will
exceed
the
amended
budget
by
286
thousand
dollars,
but
that's
a
base.
That's
it's!
Based
on
the
the
decreased
amended
budget,
there
are
some
cuts
involved
in
the
amendment.
B
We'll
also
see
a
decrease
in
the
sales
tax
received,
sales
tax
will
be
down
by
another
thirty
three
hundred
fifty
thousand
dollars
and
departmental
revenues
are
also
down
by
three
hundred
seventy
seven
thousand
dollars
and
to
come
up
for
to
make
up
for
some
of
the
loss
of
revenue
charging
for
services
and
transfer
other
funds,
or
it's
going
to
exceed
defendant
budget
by
1.5
million.
So
that's
kind
of
put
us
a
little
bit.
Good
expenditure
wise.
B
The
city
staff
has
exercised
proactive
spending
controls
and
now
we
will
end
the
year
with
expenditure
about
1.2
million
below
the
amended
budget
expansion.
Expensive
expenditure
savings
are
mostly
associated
with
position.
Vacancies
and
delayed
recruitments.
Social
restriction
imposed
by
coronavirus
have
caused
some
service
reduction
specifically
related
to
our
community
service
department.
They
had
to
cut
a
lot
of
programs
because
the
social
distancing
mandates
mandates.
B
B
Expenditures
is
going
to
be
9.7
million
dollars
that
extended
to
include
the
debt
service
items
operational-wise
the
city
net
is
actually
going
to
bring
about
braking,
meaning
they're
operating
operating
management
revenues
will
closely
tag
to
their
operating
expenditures.
However,
there
is
no
excess
funding
provided
for
their
death
service,
which
is
related
with
the
router
debt,
and
it's
about
350
thousand
dollars.
B
That's
why
you
are
going
to
see
at
the
year
end
that
they
are
going
to
look
at
a
death,
another
additional
deficit,
300
2
000,
there's
some
improvements
in
this
and
some
budget
control
effort
made
in
the
city
that
I
think
we
should
applaud
for
them,
giving
their
very
difficult
financial
situation.
The
tv
counting
expansion
has
been
reduced
by
almost
800
000
and
they
invest
additional
115
thousand
equipment,
replacement,
iptv
platform
and
limited
fiber
builds.
B
B
They
have
increased,
proposed
some
increase
in
the
average
revenue
per
user
and
it
was
approved
and
the
the
approved
target
was
120
dollars
per
month,
but
in
reality
they're
only
able
to
collect
about
109
a
month.
So
there's
a
10
difference
and
there
is
a
substantial
amount
of
delinquency
build
out
which
is
really
created
up
quite
a
bit
of
drag
on
the
revenue
for
sitting
down
and
price
funds.
B
B
C
But
what
that
does
is
that
takes
us
under
our
policy
target,
to
have
a
1.5
million
dollar
fund
balance
in
the
general
fund
and
budget
adoption,
and
so
we
will
need
to
transfer
in
600
000
to
make
that
policy
limit.
I
will
say-
and
I
know
the
city
council
knows
this-
this
is
a
highlight
at
the
end
of
this
week.
You
will
receive
your
proposed
budget
up
from
the
city
and
then
in
june
we
will
set
about
a
host
of
study
sessions
and
public
hearings
on
the
budget.
C
So
this
is
just
a
quick
highlight,
as
you
know,
what's
also
important
to
note
on
this
slide.
Is
we
and
all
other
municipalities
in
the
country
frankly
have
the
american
rescue
act,
funds
that
were
meant
to
provide
resources
to
cities
like
ours
that
have
lost
revenue
due
to
covet
19?
And
we
know
that
our
annual
revenue
is
lost
more
than
5
million
due
to
covet
19.,
and
so
that
revenue
number
would
be
a
lot
higher
and
with
expenditures
at
51
without
clove
at
19.
C
We
wouldn't
have
the
steps
this
deficit,
because
we
cut
deeply
and
in
this
baseline
budget
we
are
not
projecting
to
return
all
of
those
expenditures
that
were
cut
from
the
budget.
So,
yes,
we
still
have
a
challenge.
Yes,
during
the
budget,
we
will
talk
about
how
we
apply
that
american
rescue
act,
funds,
which
is
eight
million
dollars
that
have
that
have
to
be
spent
between
over
the
next.
C
A
city
net,
as
our
finance
director
mentioned,
has
actually
done
a
great
job
to
throttle
back
their
expenditures
due
to
loss
of
in
in
both
customer
base
and
loss
in
revenue
due
to
non-payment
and
they're
projected
to
end
next
year
and
the
current
year,
with
operating
expenditures
and
operating
revenues.
Being,
if
not
even
very,
very
close
to
even
the
challenge
is
that
they're
not
able
to
pay
the
money
that
is
old
to
the
general
fund?
C
And
that
is
both
for
the
annual
debt
service
and
the
annual
fund
deficit.
I
will
say
on
city
net,
that
the
city
council
knows
we
will
continue
to
talk
about
strategies
for
city
net
as
an
enterprise
and
as
an
operation.
As
you
know,
your
auditor
recommended
that
we
undertake
a
a
third-party
study
of
the
city
net
business
plan.
We
are
getting
ready
to
release
an
rfp
for
that
and
we
will
continue
to
talk
about
strategies
for
for
sitting.
C
That
again,
as
the
council
knows,
the
first
thing
that
that
we've
done
is
really
renegotiated
a
number
of
contracts
and
brought
in
expenditures
as
close
to
revenue
as
possible
storm
water.
As
as
the
public
knows,
we
have
a
current
storm
and
drainage
and
flood
protection
fee
that
is
going
through
a
prop
218
property
owner
election.
Now
that
fund
will
enter
into
the
negative
by
approximately
one
million
dollars
next
year,
and
so
should
that
property
prop
218
election
fail.
C
We
we
will
need
to
address
that
one
million
dollars
and
those
are
expenditures
that
are
planned
for
our
water
system
in
2021,
and
so
we
will
have
some
tough
decisions
to
make
either.
We
will
throttle
back
expenditures
and
decrease
maintenance
and
service
on
our
stormwater
system,
or
we
will
supplement
that
from
the
general
fund
and
what
you've
seen
in
this
prior
slide
is.
The
general
fund
is
ending
with
the
fund
balance
of
1.9
million
dollars
and
so
to
balance
the
general
the
general
fund.
C
We
will
be
using
ara
funds,
and
so
we
will
begin
to
enter
into
a
deficit
position
in
storm
water
and
we
will,
if,
if
the
current
measure
doesn't
pass,
make
some
tough
decisions
on
on
what
we
do
with
our
with
with
our
stormwater
system.
Now
this
does
not
include
our
reserves.
The
city
does
have
reserves.
C
C
D
First
question
slide:
16
regarding
the
insurance
seeing
the
expenditure
at
90
percent
of
budget.
Do
we
do
we
have?
Maybe
we
can
have
a
couple
comments
on
that
number
being
so
high?
Is
that
expected
to
be
at
this
point
or
or
what's
happening
there?
That's
do
you
want
a
number
of
questions,
mr
mayor,
or
do
you
want
one
of
one
at
a
time.
C
D
D
A
C
C
C
B
B
B
D
C
There
is
no
limit
on
how
much
can
be
spent
per
year.
However,
ara
will
be
paid
out
in
two
installments
half
in
in
june
21
this
year
and
the
other
half
one
year
from
there
there.
There
are
tons
of
regulations
around
expenditures
and
use
of
ara
money.
We'll
cover
that
during
budget,
the
u.s
treasury
is
continuing
to
come
out
with
regulations
and
clarifications
of
arah
expenditures,
and
we
will
certainly
handle
all
of
that
through
our
budgeting
process.
A
Real
quick,
then
we're
gonna
go
to
councilman
mason
on
the
ara.
I
understood
that
too
two
installments,
like
you,
said,
and
is
it
that
they
don't
have
to
be
spent,
but
they
have
to
be
obligated
by,
as
you
said
december
31st
2024,
and
does
that
hold
true
for
the
second
amount
or
does
that
go
to
2026.
B
E
B
E
So
I
did
want
to
just
ask
some
questions
around
the
starting
with
the
hotel
occupancy
tax.
I
know
that
in
the
question
I
asked
earlier
and
staff
has
responded
to
around
the
short-term
rentals
that
this
is
going
to
be
coming
back
to
us
at
a
later
time,
but
what
I
think
just
at
this
time,
what
is
the
status
it
does
feel
like?
We
are
losing
money.
I
do
see
people
staying
at
airbnbs.
E
E
Yep,
no,
no
problem,
the
other
one
is
a
question
that
has
also
been
asked
in
the
past.
So
if
this
could
be
answered
more
effectively,
I
think
at
the
next
budget
meeting
it
would
be
really
helpful
to
really
understand
the
card
room
tax
and
whether
there
are
any
other
taxes
that
are
coming
from
artichoke
joe's
and
whether
what
those
are
in
comparison
to
other
cities,
so
that
doesn't
have
to
be
answered
today.
E
But
I
think
that
should
be
answered
at
the
next
meeting
at
the
next
budget
meeting,
because
in
the
report
there
aren't
any
financial
numbers
and
that
staff
did
provide
that
to
us
in
an
email
later.
But
I
do
think
it's
important
that
we
really
have
a
better
understanding
of
how
these
taxes
at
artichoke
joe's
contribute
to
our
funds.
E
C
B
C
That
the
two
departments
that
are
chiefly
responsible
for
implementing
the
short-term
rental,
both
the
finance
department
and
the
community
and
economic
development
department,
that
project
was
being
led
by
those
department
directors
over
the
last
year,
both
of
those
department,
directors
separated
from
the
city
continue.
The
current
finance
director
beginning
in
march,
and
the
community
and
economic
development
director
beginning
approximately
five
months
ago,
and
so
implementation
of
the
short-term
rental
ordinance
is
a
staff
work
item.
C
C
B
B
So,
council,
member
mason,
we
called
our
staff
before
didn't
address
any
number
didn't
say
any
number
for.
Regarding
the
carbon
tax,
there
is
an
attachment
to
the
staff
report,
attachment
2
and
a
n,
and
each
major
revenue
items
are
listed
and
the
card
room
tax
is
listed
as
midway
in
the
revenue
section
for
the
year.
We
estimate
you
receive
about
2
million
dollars
from
cartoon
cats.
That's
that
estimate
is
based
on
38
tables.
B
B
I
don't
have
an
answer
to
comparing
to
other
cities
that
we
can
do
more
research
on
that,
but
each
city
is
different.
Every
city
has
a
different
kind
of
a
card
room
situation
and
some
city
may
have
more
and
some
city
may
have
less,
but
that's
how
I
can
find
more
and
provide
the
council
additional
information.
A
Just
on
the
card
room,
my
understanding
is
every
july
one
based
on
the
cpi
that
there
is
an
automatic
increase
that
occurs
for
the
hard
room
table.
Tax
I'll
call
the
table
tax,
which
is
a
quarterly
based
on
numbers
of
tables
that
are
authorized
which
go
in
groups
of
four,
so
it
current
to
it
decreasing
to
that
would
then
go
to
the
next
level
of
more
monies
per
table
for
all
of
those
because
it
goes
into
another.
Pier.
Is
that
correct?.
C
That's
correct:
in
addition,
our
card
room
tax
is
charged
on
a
per
table
basis,
which
was
actually
more
advantageous
than
some
other
neighboring
cities
with
card
rooms
that
have
a
revenue
based
tax.
So,
for
example,
during
token
19
we
did
not
lose
card
room
revenue
because
it
was
based
on
a
guaranteed
per
table
tax,
whereas
other
cities
that
had
a
revenue
structure
based
on
revenue
had
a
significant
decrease
in
their
carbon
revenue.
But
again
we
will
talk
about
that
during
budget
and
can
come
back
with
more
information
and
more.
C
Service
funds,
so
council
member
mason
asked
a
question
about
internal
service
funds
and
were
there
any
savings
as
a
result
of
municipal
facilities
being
closed
during
the
pandemic
and
some
employees
working
remotely
and
so
at
a
high
level
answer.
There
are
no
significant
savings
in
internal
service
funds
due
to
covet
19.
It's
important
to
note
that
our
internal
service
funds
are
building
maintenance,
fleet
and
iq
services
with
regard
to
it.
It
was
fully
functional
during
the
pandemic,
if
not
more
so.
C
With
regard
to
building
maintenance,
there
were
no
significant,
appreciable
changes
in
their
in
the
the
cost
of
their
operations
due
to
at
cobit.
It's
also
important
to
note
that
why,
while
some
of
our
facilities
were
close
to
the
public,
many
of
our
employees
were
actually
on
work
or
on
rotational
schedules.
So
city
hall
was
was
actually
not
not
closed
during
the
pandemic
and
was
very
much
a
place
of
work,
and
not
just
police
and
fire
staff,
but
staff
from
our
hr
division.
C
Thank
you,
council,
member
salazar,
for
that
question,
but
the
answer
is
actually
multi-part.
So,
yes,
we
had
a
traffic
engineer
that
separated
from
the
city
to
take
a
job
at
another
agency.
That
position
was
vacant.
When
we
developed
this
current
year
budget
for
20
20
20
for
the
2021
fiscal
year,
it
was.
C
C
The
2021
budget,
we
had
a
fiscal
shortfall
that
we
were
attempting
to
cover
through
employee
retirement
or
employees
potentially
layoffs,
and
so
at
the
last
minute
we
had
a
number
of
employees,
a
long
tenure
that
elected
to
retire.
What
they
did
was
they
in
effect
saved
a
position
that
was
slated
to
be
laid
off
and
so
toward
the
beginning
of
the
fiscal
year.
C
There
was
an
all-out
effort
to
avoid
layoffs,
and
so
we
essentially
froze
every
vacant
position
in
order
to
avoid
having
an
employee
laid
off
one
of
those
vacant
positions
was
the
city
engineer
position.
We
continued
to
recruit
for
that
position
and
hire
a
contractor
to
fill
in
for
that
work,
and
we
used
professional
services
money
that
we
had
to
pay.
C
C
We
have
been
unsuccessful
in
our
recruitment
of
a
traffic
engineer,
and
that
is
still
an
open
position
that
we
are
still
recruiting,
for.
We
are
doing
an
assessment
and
may
have
to
take
a
look
at
our
long-term
strategy
for
filling
that
position.
Finding
traffic
engineers
in
the
bay
area
on
the
peninsula
and
at
our
compensation
level
is
extremely
challenging,
and
so,
unfortunately,
that
work
doesn't
go
away
and
much
of
it
is
mandated,
and
so
we
will
continue
to
have
to
contract
for
that
work
at
a
higher
cost.