►
Description
San Bruno City Council Meeting February 23, 2021
6b. Mid-Year Financial Update Report
B
A
A
A
C
Okay,
so
this
is
the
mid-year
budget
report
for
the
current
fiscal
year.
Again,
the
city
operates
on
a
july
1
through
june
30
fiscal
year.
The
information
we're
going
to
talk
about
now
is
for
the
first
six
months
of
the
current
year,
so
from
july,
1
2020
to
december
31st
2020,
it's
important
to
know
and
pause
for
a
minute
to
talk
a
little
bit
about
the
challenges
that
this
city
had
when
we
adopted
our
2021
budget.
We
just
talked
about
the
kafir
from
last
year.
C
Now,
what's
the
bad
news
we'll
talk
about
that?
The
bad
news
is
that
we
are
seeing
additional
revenue
short
falls
from
our
hotel
room
taxes
as
well
as
vehicle
license
fees
to
the
tune
of
nearly
two
million
dollars
in
our
budgeted
revenue
that
now
we
know
that
we
are
not
going
to
see
that's
the
bad
news
and
and
and
both
tlt
revenue
and
blf
is
replicated
in
every
city
across
this
county.
C
That
is
now
factored
into
our
sales
tax
revenue
and
we
have
started
to
receive,
and
so
again,
even
though
we
have
revenue
shortfalls
again
this
year
of
two
million
dollars,
that
has
been
more
than
covered
by
additional
sales,
tax
credits,
and
so
now
we'll
go
through
the
detail
and
then
we'll
be
available
for
questions.
The
agenda
is
an
overview
of
the
general
fund.
We'll
talk
about
the
mid-year
financial
projection
on
the
general
fund,
revenues
and
expenditures,
we'll
talk.
D
D
D
D
So
now
we
have
a
mid-year
projection,
given
that
we're
six
months
into
the
year
we
had
a.
We
had
an
amended
budget
of
a
draw
on
reserves
of
233
thousand
and
the
we'll
get
to
this
more
about
where
the
where
the
variances
were,
but
now
with
the
good
news
that
the
city
manager
mentioned
we're
actually
going
to
have.
D
It
looks
like
a
surplus
of
773
000
by
year-end,
which
is
good
news
and
will
not
require
any
additional
budget
cuts
next
slide.
Please,
and
I'm
not
going
to
go
over
all
these
numbers
other
than
to
say.
If
you
look
at
the
bottom,
you'll
see
that
we've
received
45
of
our
budgeted
revenues
year-to-date
this
year
last
year.
This
at
this
time
it
was
42
percent,
so
we're
trending,
roughly
the
same
as
last
year
as
far
as
timing.
That
gives
us
confidence
in
in
the
numbers
that
we've
estimated
next
slide.
D
I
just
want
to
point
out
when
the
budget
was
put
together
nine
months
ago,
the
city
only
had
roughly
one
month
of
actual
hotel
tax
revenues
having
received
after
coving
really
started.
So
it
was
hard
for
staff
to
make
a
good
judgment
about
what
was
going
to
happen.
They
projected
a
40
percent
decline
in
hotel
and
motel
occupancy.
It
actually
has
been
75,
so
it's
a
much
larger
drop,
1.2
million
dollars
less
than
what
we
budgeted
also
motor
vehicle
in
lieu
property
taxes,
1.2
million
drop.
D
D
They
receive
much
more
in
property
taxes
than
what
the
per
pupil
allocation
is
that
the
state
guarantees
they
keep
all
the
difference
by
them,
keeping
all
the
difference:
the
school
districts
that
pulls
from
the
pot
of
money
that
cities
are
reimbursed
for
the
motor
vehicle
in
lieu
fees.
So
in
the
current
year
the
county
is
informed
that
we're
going
to
be
down
a
million
two
from
what
our
budget
was.
Last
year.
It
was
250
000
down
now.
D
D
D
D
On
the
expenditure
side,
community
services,
without
having
the
facilities
open
to
offer
programs,
has
a
lot
of
savings
both
on
the
temporary
salary
side
and
supplies
and
materials.
So
they're
projecting
to
see
a
1.2
million
dollar
savings
and
police
and
public
works.
A
slight
increase.
There's
a
couple
items
in
the
budget
amendment
to
augment
their
budgets,
so
the
net
expenditures
going
down
or
a
savings
of
1.1
million
from
a
doctor.
D
D
D
This
year
is
the
first
full
year
of
measure
g
funds
coming
in
and
they're
actually
coming
in
higher
than
what
was
expected
use
tax,
which
is
what
measure
g
is,
is
largely
driven
by
online
sales,
and
so
that's
been
a
very
positive
for
the
city
on
the
expenditure
side.
Those
are
coming
in
at
budget.
We
don't
expect
any
changes
there,
but
the
measure
g
portion
of
the
general
fund
at
the
end
of
the
year
should
be
having
a
surplus
of
724
thousand
dollars
right.
C
D
D
C
C
C
To
have
revenues
outpaced
expenditures,
however,
as
we
know,
and
as
is
reported
in
the
staff
report
due
to
covet
19,
there
have
been
delinquencies
that
have
brought
down
our
revenue
projections.
However,
it
is
important
to
know
based
on
the
year
to
date,
revenues
are
slightly
more
than
expenditures,
and
so
what
the
enterprise
has
done,
because
there's
they
are
repositioning
and
actually
working
at
operating
as
an
enterprise.
C
Now
we
we
do
not
think
that
we
will
in
sydney
that
be
able
to
contribute
money
to
pay
down
the
loan
to
the
general
fund
this
year,
but
the
the
goal
of
stopping
the
digging,
even
though
we
are
having
depressed
revenue
due
to
cover
19
is
working,
and
that
is
showing
out
in
this
mid-year
report.
So
I
just.
C
Because
I
know
that
that
was
a
major
point
for
the
council
when
we
developed
this
budget
and
now
that
we
know
that
we
are
seeing
non-payment
due
to
covet
19.
Part
of
the
question
was
well:
where
are
we
at?
Where
are
we
at
and
are
we
are
we
back
to
digging
a
hole?
And
so
absolutely
as
reported
in
in
the
audit
city?
That
is
a
is
a
concern
that
we
have
to
address.
C
D
C
D
C
Peninsula,
clean
energy,
we
did
receive
a
grant
to
look
at
our
energy
codes
as
they
relate
to
new
development
and
utilizing
gas
versus
electric,
and
so
this
is
a
recognition
of
the
receipt
of
those
funds
and
and
and
the
staff
work
is
ongoing.
It
has
not
come
to
council,
but
we
did
receive
the
funds
and
so
at
mid-year.
We
are
presenting
council
to
reflect.
D
It
and
the
the
next
item
there
was
an
increase
in
the
what
the
police
department
pays
for
the
county
for
certain
information
services,
so
that
needs
to
be
factored
into
the
police
budget.
We
talked
earlier
about
the
property
tax
budget
reduction
and
the
good
news
in
the
sales
tax
next
slide.
Please.
D
We
also
talked
about
the
hotel
reduction
in
the
motor
vehicle
in
lieu
property
tax
in
lieu
of
motor
vehicle
reduction,
business
taxes,
we're
actually
seeing
an
increase
business
license
tax
there's
been
additional
business
activity.
I
believe
it
was
youtube,
youtube
receipts
going
up,
so
our
so.
Our
revenues
have
gone
up
on
the
department
budget
side
planning
is
requesting
is
expected
to
bring
in
a
50
000
less
in
revenues,
and
we
talked
about
recreation.
D
C
C
Increase
that
is
related
to
the
ongoing
efforts
with
regard
to
the
stormwater
fee
increase
process
and
the
milling
costs
for
the
eleven
thousand
dollars
in
the
police
department
budget
that
is
related
to
additional
support
costs
from
april
to
june
related
to
the
police
records
management
system.
The
service
contract
is
over
in
april
and
we
need
that
to
be
carried
through
the
rest
of
the
fiscal
year,
and
so
that's
what
that
11
000
complex.
D
Programming
same
thing:
on
library:
that's
a
decrease
in
revenues
there.
Fortunately,
the
recreate
parks
and
recreation
and
seniors
in
library.
On
the
far
right
column,
you'll
see
expenditure
decreases
they're
holding
down
their
budget.
They
have,
I
mentioned
earlier.
Temporary
staffing
wasn't
hired
and
they're
holding
down
holding
off
on
supplies
and
materials,
vehicle
outfitting
and
I'm
not
familiar
with
this
one
either.
My
apologies.
The
sixty
thousand.
C
D
D
D
D
D
We
want
to
augment
a
cip,
create
a
new
one
to
allow
for
more
storage
space
on
the
city's
financial
system.
It's
running
out
of
room
on
the
server,
so
there
needs
to
be
more
storage
space,
so
we're
moving
47
thousand
dollars
from
another
cip
project
into
this
project
and
youtube
made
its
payment
for
community
benefit.
That
was
part
of
its
development
agreement.
This
actually
came
in
after
december
31st,
but
it
was
such
a
big
number.
We
wanted
to
report
it
here.
D
D
D
Revenue
declines
due
to
the
facility,
closures
and
expenditures
are
pretty
much
within
normal
range
for
this
point
of
the
year,
with
the
exception
in
the
general
fund
that
recreation,
senior
services
and
library
have
reduced
their
expenditures
with
no
programming
going
on
next
slide
on
the
enterprise
funds.
Again
we
mentioned
wastewater
and
city
net,
reducing
the
revenue
budgets,
but
city
net,
also
reducing
expenditures
so
that
they
can
come
in
balanced
at
year
end.
No
real
changes
are
requested
for
internal
service
funds.
C
We
did
talk
about
the
potential
federal
stimulus
funds
that
I
know
everyone
is
hearing
about
in
washington,
and
so
the
latest
news
is
that,
hopefully
they
will
be
passed
if
not
later
this
week
next
week,
but
there
is
a
total
of
in
the
current
package,
350
billion
dollars
for
state
and
local
governments,
that
money
will
will
be
allocated
or
is
currently
proposed
to
be
allocated
based
on
a
cdbg,
a
community
development
block
grant
formula
so
based
on
our
population.
We
know
that
san
bruno's
portion
of
that
350
billion
is
7.9
million.
C
Now,
should
the
federal
stimulus
be
passed
at
the
recommended
at
the
current
recommended
level,
those
payments
are
expected
to
be
made
within
this
fiscal
year.
Assuming
it
happens
within
the
next
few
weeks.
We
have
not
factored
in
that
potential
revenue
to
this
budget.
As
we've
said,
it's
good
news,
bad
news,
good
news
and
at
this.
D
C
C
C
B
C
The
the
new
information
that
is
embedded
in
the
audit
is
the
recommendation
for
a
independent
financial
review
of
the
city
net
business
plan
before
the
city
embarks
on
the
fiber
to
the
home
project.
Should
we
decide
to
do
that,
and
so
that
is
an
important
piece
that
came
out
of
the
last
presentation
and
the
second
item
is
our
storm
fund
having
a
fund
balance
at
the
end
of
last
year,
at
400
000
and
as
a
council
on
the
public
knows,
we
have
launched
this
effort
to
address
the
health
of
that
fund
more
globally.
C
As
we
move
into
the
budgeting
process
for
the
21
22
fiscal
year,
the
first
thing
that
staff
is
doing
is
doing
a
projection
on
revenues
and
expenditures.
We
know
that
our
pension
costs
and
some
of
our
other
personnel
benefit
costs
are
going
to
go
up
and
we
have
no
ability
to
control
those
on
a
year-to-year
basis.
C
In
addition,
based
on
the
revenue
projections
for
for
next
fiscal
year,
that
will
tell
us
how
much
of
a
recovery
we
have
of
that
8.2
million
dollars
that
we
needed
to
cut,
and
so
how?
Much
of
that
do?
We
need
to
sustain
going
into
the
next
fiscal
year
and
and
right
now,
we're
literally
having
close
the
books
on
the
first
six
months
in
the
middle
of
making
those
projections
and
those
assessments
of
what
our
revenue
will
be
for
for
the
next
fiscal
year.
C
And
so
we
know
we
froze
a
number
of
positions.
We
we
pulled
millions
of
dollars
out
of
funded
capital,
improvement
projects
and
said
you
know
what
right
now
we
can't
do
that.
We
also
borrowed
two
million
dollars
for
measure
g
that
the
council
and
the
community
wanted
to
spend
on
road
projects
because
we
were
facing
such
a
significant
deficit,
and
so
I
know
that
we
will
be
having
conversations
if
we
receive
the
federal
stimulus
and,
if
there's
some
recovery
in
the
comp
in
the
economy
of
backfilling
that
money.
C
D
D
Who
knows
if
hotel
activity
will
pick
up
to
what
it
was
before
is.
Is
the
travel
industry
going
to
have
a
significant
change
in
the
long
term?
We
don't
know
that
with
all
the
internet
shopping
going
on,
is
there
going
to
be
a
significant
change
in
sales
taxes
and
how
that
gets
apportioned
to
san
bruno?
We
don't
know
that,
so
I
would
just
advocate
keeping
a
conservative
approach,
knowing
that
you
really
won't
have
a
good
handle
on
revenues
for
at
least
a
year.
D
We
won't
really
know
how
long
the
recession
is
going
to
last
and
what
the
trends
are
going
to
look
like.
So,
if
we're
fortunate
enough
to
get
the
stimulus
money,
I
echo
what
the
city
manager
said.
Use
use
it
for
one
time
things
that
things
like
capital,
improvements
that
you've
deferred,
but
don't
try
to
use
it
for
ongoing
spending,
because
it's
just
too
much
uncertainty
right
now.
C
C
So
the
last
report
covered
expenditures
from
march
of
2020
so
part
of
last
fiscal
year
through
december
31st
2020.
We
are
now
closing.
We
just
closed
the
books
on
january
and
there
were
some
ppe
expenditures
as
well
as
we
expend
funds
to
do
our
annual
our
monthly
testing
sites
that
cost
the
city
under
3
000
a
month.
So,
yes,
there
were
expenditures,
since
you
received
that
report
that
ended
up
at
the
six
month
mark,
but.
B
C
C
So
that's
why
I
answered
that
question.
With
regard
to
short-term
rentals,
the
city
council
did
cast
an
ordinance
charging
our
transient
occupancy
tax,
our
hotel
room
tax
that
is
now
14
to
short-term
rentals.
That
has
not
been
implemented
at
this
time
due
to
the
process
to
implement
that
as
well
as
decreased
staffing.
We
have
not
implemented
that
in
the
first
six
months
of
this
fiscal
year.
C
There
are
two
efforts
of
foot
with
regard
to
short-term
rentals
that
that's
worth
mentioning.
One
is
doing
a
contract
with
airbnb
that
will
remit
through
their
platform.
Airbnb
is
the
only
platform
that
will
configure
their
platform
to
charge
the
tlt
tax
through
the
platform
and
then
remit
it
automatically
to
the
city,
and
so
it
takes
the
host
out
of
it,
and
so,
if
you
own
a
short-term
rental,
you
put
it
on
airbnb,
you
don't
receive
the
money.
C
C
C
The
other
effort
that
we
are
tracking
with
regard
to
this
is
that
there
are
state
legislative
conversations
about
actually
mandating
all
online
short-term
rental
platforms.
To
do
what
airbnb
will
do,
which
is
to,
through
their
system,
charge
the
tax
and
remit
it
to
the
governmental
agency
that
will
vastly
streamline
and
improve
our
ability
to
collect
revenue
from
from
short-term
rentals,
and
so
that
effort
at
the
state
is
being
talked
about,
and
we
are
tracking
it
and
even
participating
in
conversations
that
are
happening
at
the
league.
With
regard
to
that.
F
Yet
still
we
have
a
surplus
so
I'll.
Take
that
win!
I'm
I'm
I'm
proud
of
what
we've
done.
I'm
appreciative
to
staff
for
all
their
hard
work,
so
we'll
continue
going
forward
a
few
questions
that
I
have.
So
what
is
the
actual
projected
hotel
occupancy
that
we're
anticipating
for
for
the
next
six
months.
D
Mr
vice
mayor,
I
don't
have
the
occupancy
figures.
What
I
do
know
is
that
year
to
date,
if
there's
been
a
75
percent
decline
in
receipts,
were
we
factored
in
for
the
rest
of
the
year
as
if
it
were
going
to
continue
at
that
lower
level?
I
don't
know
how
that
breaks
down
as
far
as
what
the
room
occupancies
are
at
the
hotels.
That
is
something
we
probably
could
get,
though,.
F
Sure,
thank
you.
It's
you.
The
conversations
just
brought
that
question
out
when,
when
I
was
listening
to
the
data
and
then
the
other
observation
is,
we've
been
working
on
the
master
fee
study
to
hopefully
improve
our
revenues
through
our
different
departments
and,
of
course
our
our
our
former
finance
director
was
leading
that
and
he
left
so
these
projections
that
we're
putting
in
in
our
revenue
streams
it
doesn't
include
any
increases
in
in
the
masterpiece
study
and
mike.
C
Schedule
is
a
key
component.
We've
been
hard
at
work
at
that
and
there's
a
meeting
scheduled
next
tuesday,
which
I
believe
is
march
2nd
or
3rd
and
where
we
will
be
presenting
the
recommendations
of
that
master
fee
schedule,
and
so
it's
actually
important
to
note
that
one
of
the
reasons
for
that
master
fee
schedule
is
that
we
need
to
increase
the
charges
in,
for
example,
our
planning
department.
Right
now
we
charge
our
planners
out
at
about
70
an
hour.
Well.
D
C
A
hundred
dollars
an
hour
and
our
cost
is
actually
over
100
an
hour
and
so
unfortunately,
because
our
fees
have
not
been
increased
in
so
long.
We
have
a
portrait
that
we
showed
today
in
the
mid-year
budget,
where
we're
actually
decreasing
planning
revenues
by
50
000,
even
though
we're
sort
of
at
a
record
peak
of
activity.
C
C
So
we
are
not
subsidizing
private
development,
and
so
we
will
be
bringing
that
forward
to
the
council
next
tuesday
there's
a
process
where
we
will
have
the
policy
setting
conversation
with
the
city
council.
But
the
plan
is
to
have
those
fees
adopted,
there's
a
required
noticing
period,
but
have
them
take
effect
on
july,
1
or
next
budget
year.
The
21-22
budget
year.
F
That's
good
news,
of
course
everybody
wish
it
was
sooner
right,
but
the
any
effort
for
a
phased
approach
in
the
short-term
rentals
would
be
appreciated.
I
I
I
learned
something
today
about
that.
Hopefully
the
state
will
follow
through
and
and
regulate
and
require
all
these
short-term
rental
companies
to
to
to
pay
the
city
directly
to
keep.
F
A
E
So
I'm
always
nervous
now
about
you
know
what
we're
projecting
and
whether
we're
being
conservative
enough.
You
know
it
almost
seems,
like
you
know
the
shortfalls.
Now
there
are
some
unknowns
that
that
are
now
known,
and
so
we
know
not
to
expect
any
more
t.o.t
and
we
know
sales
tax
is
going
to
be
down.
E
We
know
where,
where
some
is
coming,
where
some
isn't
coming,
we
seem
to
have
our
arms
around
that,
but
you
know
looking
at
the
numbers,
just
as
general
fund,
it
really
looks
like
we're
kind
of
predicting
a
wash
where
you
know
the
shortfalls
that
we
know
about
are
just
being
covered
by
the
increases
that
we
do
know
about,
but
there's
still
a
level
of
risk.
That's
out
there
that
I,
I
think,
is
maybe
not
being
reflected
in
this.
E
I
saw
an
article
this
morning
that
said
that
sfo
is
predicting
that
it
might
be
six
years
before
they
recover
back
to
you
know,
pre-open
conditions.
There
may
be
other
businesses
that
are
that
are
suffering
now.
The
shelter
in
place
affected
a
lot
of
businesses,
big
and
small,
and
you
know
I'm
wondering
you
know
how
fragile
they're
going
to
be
coming
here,
and
you
know
sears
kind
of
surprised
to
us
last
time
last
year.
E
E
C
C
C
We
have
very
good
information
on
exactly
what
the
property
tax
repentance
will
be
because
we
know
the
assessed
value
and
we
are
also
on
what's
called
the
teeter
plan,
which
is,
if
they
are
not,
we
are
reimbursed
from
the
county
100
of
what
we
put
on
the
roll
and
the
county
has
a
responsibility
for
the
collections
and
anything
in
any
interest
that
they
collect
on
that,
but
we're
we
are
reimbursed
for
what
we
put
on
the
roll.
So
we
have
really
good
information
on
on
property
tax.
C
With
regard
to
sales
tax,
we
tracked
that
on
a
quarterly
basis
with
hdl,
which
is
our
sales
tax
consultant.
The
city
receives
confidential
information
on
quarterly
room,
actually
monthly,
but
quarterly
remittances
from
each
individual
business
in
in
in
the
city,
and
so
that
information
we
know
what
each
business
is
remitting
in
sales
tax.
We
track
it.
In
addition,
we,
while
we
have
not
yet
received
the
sales
tax
payment
from
cube
four
in
2020,
so
that's
october
november
and
december
quarter
when
santa
typically
comes
to
town.
C
That's
actually
depressed
from
last
fiscal
year
because
we
cut
the
tlt
budget
last
fiscal
year,
and
so
we
appear
to
be
almost,
I
would
say
at
rock
bottom
for
tlt
remittance
and
we're
only
projecting
25
of
that
of
that
revenue
source
for
the
remaining
fiscal
year
and
as
we
go
into
the
reopening
two
years-
and
we
may
bounce
back
absolutely.
But
we
are
doing
that
sort
of
based
on
the
depths
of
of
occupancies
at
a
25
percent.
C
What
is
also
not
factored
in
in
there
is
the
additional
two
percent
of
the
tlt
increase
that
we
that
was
passed
in
november
that
went
into
effect
in
january.
We
might
see
moderate
minor
payments
in
that
because
tlt
revenue
is
so
low,
but
that
may
interplay
to
that,
and
so
staff
is
confident
in
the
revenue
projections
that
are
in
them.
E
C
B
B
Or
a
third-party
consultant,
I
don't
know,
I
don't
know
they're
going
to
bed,
I
apologize,
but
whether
there's
any
it,
I
guess
traditionally.
My
question
is:
do
these
healthy
funds
stay
healthy
for
a
while
meaning
if
they're
invested
conservatively
or
they're
taken
care
of
conservatively?
Is
this
something
that
we're
not
going
to
have
to
worry
for
a
couple
of
years.
B
D
What
I
can
say
is
there
are
uncertainties
that
happen
in
water
and
wastewater
as
well,
and
a
big
one
would
be,
for
example,
during
drought
years,
sometimes
people
water
rates
may
go
up,
people
can
serve
more
and
you
actually
bring
in
less
revenue.
Sometimes
things
are
counterintuitive
and
we
don't
know
what's
going
to
happen
as
far
as
weather.
So
that's
a
big
uncertainty.
D
Wastewater
rates
tend
to
trend
along
with
water
rates.
So
I'm
curious
about
how
the
water
and
wastewater
went
different
directions
or
why
it
was
so
much
more
dramatic
on
wastewater
and
don't
forget
that
a
lot
of
your
water
and
wastewater
rates
will
need
to
go
towards
continuing
your
capital
improvement
work.
So
you're
able
to
put
a
pause
on
that
for
next
year.
D
You'll
need
to
continue
that
effort.
You'll
need
to
continue
with
your
capital
improvements
and
over
time.
If
you
don't
keep
your
rates
up
to,
if
you
don't
raise
them
with
the
cost
of
living,
it
just
means
down
the
road.
They'll
be
double
digit
increases,
so
you
were.
You
were
very
prudent
in
setting
five
percent
rate
targets,
and
I
mean
I
I
don't
have
a
crystal
ball,
but
that
does
not
seem
unreasonable
for
an
ongoing
set
of
revenue
increases
to
expect.
A
But
it's
always
we
we
do
project
like
in
the
permits
and
the
other
things
that
the
council
member
was
saying,
and
so
it's
always
nice
to
be
able
to
finish
with
a
little
comfort
than
it
is
to
be
worried
for
the
end
of
the
finish
line,
whether
we
will
so.
I
would
hope
that
we
continue
on
that
path
and
I
understand
from
the
city
manager
his
ill
responses
to
the
council
of
themselves
are,
but
that's
where
I
was
going
a
little
bit
too
okay.
So
this
is
an
action
item.
A
A
A
A
E
E
A
Hi,
okay
and
what
I
am
trying
to
do
is
asking
for
public
input
and
had
given
an
opportunity
of
saying
we're
going
to
go
back
after
vice
mayor
medina.
Let's
go
ahead
for
the
public
comment.
If
it
could
be
done
quickly,
please
so
we
can
go
on
to
the
public
hearing
which
some
people
have
been
waiting
for.
Please.