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Description
San Bruno City Council Meeting January 25, 2011 10d. Quarterly Financial Report
B
As
we
look
at
the
result,
financial
results
of
the
city
for
the
six
months
just
concluded
one
of
the
things
I
wanted
to
point
out
specifically
on
your
staff
report,
the
tables
that
are
indicated
on
page
something
for
being
74
of
your
council
packet.
The
budget
information
that's
shown
in
those
tables
are
the
amended
budgets
so
for
fiscal
year.
2009-10.
B
With
that
that
I'll
go
into
the
financial
results
for
the
six
month
period.
This
slide
shows
the
five
largest
revenue
categories
for
the
city,
I've
added
a
six
category,
that
being
the
hotel-motel
tax.
Only
from
the
perspective
that
there's
a
significant
difference
in
terms
of
this
year's
performance
versus
last
year,
so
I'll
start
with
property
tax
property
tax
revenues
for
the
six
month
period
were
at
2.7
million
dollars
around
forty
eight
percent
of
the
full-year
budget
and
slightly
below
the
results
of
the
prior
year.
B
Property
tax
revenues
are
generally
received
in
two
large
installments
one
being
in
the
December
month
and
the
other
in
the
April
May
period,
and
that
a
component
of
property
tax
is
the
Supplemental
property
tax.
That's
basically
received
from
the
by
the
cow
from
this
county
by
the
city
and
that's
based
on
the
turnover
of
property
and/or
and
our
way
of
saying
it
any
sales
of
property
and
the
reassessment
would
be
forthcoming
in
the
form
of
a
supplemental
property
tax.
B
In
the
area
of
sales
tax
again
mind
you,
last
year's
results
were
severely
depressed,
given
the
economic
conditions
at
that
time.
So
this
year's
results
compare
quite
favorably
with
that.
Last
year's
and
we're
at
the
fifty
percent
mark
already
in
terms
of
this
year's
performance
for
for
that
category
in
terms
of
motor
vehicle
license,
be
slightly
below
the
fifty
percent
mark
and
somewhat
comparable
to
the
same
results
of
the
prior
year.
B
Charges
for
services
were
right
at
the
fifty
percent
mark
and
it's
a
slightly
below
the
comparable
period
of
last
year
and
second
to
last
category
for
the
use
of
money
and
property.
Those
are
a
combination
of
investment
income
that
from
the
city's
portfolio1.
One
thing
of
note
in
terms
of
this
category
is
that,
while
there
has
been
an
uptake
of
interest
rates,
short-term
rates
are
still
relatively
low
and
therefore
investment
deals
on
our
portfolio
continue
to
be
relatively
depressed
in
terms
of
earnings
that
the
city
sees
for
for
its
money
that's
invested.
B
B
So,
while
there's
some
positive
news,
we're
also
mindful
the
fact
that
there's
still
the
use
of
reserves
and
it's
it's
still
an
ongoing
challenge
for
Ford
organization
in
the
area
of
redevelopment
revenues
and
expenditures
similar
to
the
property
tax
revenues
we
receive
about
approximately
half
of
that
during
the
first
half
of
the
year
and
the
other
half
we
don't
receive
until
the
April
to
May
month
and
likewise
for
the
low
and
moderate
income
housing
fund.
Those
revenues
are
also
follow.
The
same
pattern
and
those
are
relieved.
B
The
tax
increments
in
terms
of
expenditures,
most
of
the
expenditures
occur
in
the
revelled
agency
and
the
latter
part
of
the
fiscal
year.
A
big
part
of
the
development
operations
is
really
the
tax
increment
money,
that's
shared
with
the
taxing
agencies
and
that's
done
toward
the
end
of
the
fiscal
year.
So
we've
accumulated
our
all
the
tax
American
revenues
and
then
the
calculation
in
terms
of
the
tax
sharing
with
the
other
tax
entities
in
terms
of
the
low
and
moderate
income
housing
fund,
those
revenues
I'm.
Sorry,
those
expenditures
also
include
the
budget.
B
Expenditures
also
include
a
subsidy
that
we
provide
to
the
crossing
project
and
that's
also
paid
toward
the
end
of
the
fiscal
year.
In
terms
of
the
notes,
the
slide
it's
I'm
going
to
go
very
briefly
on
this
slide.
Our
internal
revenue
service
funds
really
are
charges
against
the
various
departments
in
terms
of
revenues
and
therefore
it's
exactly
this
fifty
percent
level.
These
are
internal
charges
that
the
city
as
finance
that
does
on
a
routine
basis
in
terms
of
expenditures,
obviously
by
looking
at
the
slide,
were
within
the
levels
through
the
first
six
months.
B
Those
initiatives
have
fallen
a
little
below
what
we
our
expectations,
are.
Likewise,
the
expenditures,
as
you
can
tell
also
our
correspondent
Lee
lower
than
what,
where
our
budget
levels
are.
So
while
there
is
a
favorable
comparison
in
terms
of
this
year's
revenues
for
cable
TV
versus
last
year,
it's
there's
still
a
bit
of
work
to
be
done
in
two.
You
know
hitting
those
targets
for
those
two
areas
that
I
indicated
and,
namely
the
commercial
services
challenges
for
the
upcoming
year
as
I
indicated.
B
While
we
think
that
at
the
end
of
the
fiscal
year
we
would
be
able
to
come
finalize
the
year
with
a
balanced
results.
There
are
already
challenges
for
the
upcoming
fiscal
year
and
some
of
those
challenges
include
rate
increases
in
our
retirement
plan
with
CalPERS.
As
indicated
on
slide.
There
are
significant
increases
in
the
employer
contribution
rate
rates
for
our
plan
and
in
the
miscellaneous
plan,
it's
going
up
approximately
three
percent
from
14.7
to
almost
eighteen
percent
and
then
for
the
safety
plan
is
going
up.
B
B
As
we
start
thinking
and
planning
for
the
upcoming
fiscal
year's
budget,
the
governor's
has
already
made
a
proposal
in
terms
of
addressing
the
state's
continued
deficit,
and
one
of
the
large
impacts
is
going
to
be
in
the
Redevelopment
Agency
and
his
proposal
to
eliminate
redevelopment
agencies
that
are
here
in
the
States.
There
is
a
subsequent
staff
report.
That's
going
to
talk
further
about
it.
B
Initial
estimates
in
terms
of
impacts
to
the
general
fund,
just
in
terms
of
support
of
the
services
that
the
general
fund
provides
and
through
a
share,
a
charge
that
the
general
fund
assesses
the
the
real
agency
funds
is
somewhere
in
the
neighborhood
of
a
million
dollars,
so
to
solve
the
bat
that
is
potentially
another
area
that
we
need
to
address
as
we
think
about
the
2011-2012
budget.
Other
uncertainties
include
litigation
that
may
be
impacting
the
wastewater
enterprise
once
that
settlement
is
finalized,
we
will
see
some
some
financial
impacts
on
there.
C
B
There
is
some
positive
trends,
namely
what
what
I've
indicated
earlier
in
terms
of
sales
tax
but
at
the
same
time
it's
an
easy
comparison
in
terms
of
sales
tax,
because
things
got
really
really
bad
during
last
year
in
terms
of
sales
tax
revenues.
So
when
you
look
at
it
this
year
versus
last
year
for
the
first
six
months,
you
see
a
positive
trend.
There
is
consumer
spending
back
full
force.
You
know,
arguably
you
know
it's
still
debatable.
B
We
still
see
some
mackerel
data
in
terms
of
employment,
state's
unemployment
still
in
excess
of
twelve
percent
I
mentioned
earlier
in
terms
of
TLT.
Yes,
there's
some
positive
signs
and
there,
albeit
helped
by
the
fact
that
we
increased
our
rate
from
ten
to
twelve
percent.
You
know
there's
lots
of
challenges
ahead,
as
I
mentioned
earlier.
How
we
were
able
to
provide
a
balanced
budget
for
this
current
fiscal
year
is
with
the
use
of
limited
limited
resources,
limited
revenues,
limited
term
revenues
that
is,
and
so
we're
definitely
not
on
the
woods.
There's
the
existing
challenges.
B
Over
and
above
the
back
that
you
know,
there's
the
increased
pers
rates.
What
the
state
take
away
is
going
to
be,
you
know,
and
that's
very
fluid.
You
know
with
the
governor's
proposal.
A
part
of
that
proposal
also
requires
the
voters
to
extend
the
temporary
tax
measures
that
are
currently
in
place,
which
includes
extension
of
sales.
Tax
extension
of
the
vehicle
license
fee
extension
of
the
temporary
increase
in
personal
income
tax,
so
there's
still
quite
a
number
of
variables
that
we
still
need
to
deal
with
them.
C
Any
other
question
to
ensure
the
only
thing
quickly
I
will
say
is
that
I
think
it
is
a
proactive
approach
to
do
within
the
next
30
days.
I
believe
that,
as
you
already
indicated,
with
the
650,000
with
pers,
in
addition
to
the
redevelopment,
which
would
be
a
million
and
other
things
that
may
occur,
we
could
be
looking
at
a
two-million-dollar
concern
upcoming
for
general
fund,
which
we
all
know
what
that
affects.
C
Please
fire
live
ray
parks,
rec,
etc,
so
very
challenging,
I
think
back
to
when
and
who
would
have
known
a
couple
years
ago,
when
I
said
you
know
that
I
believe
that
the
next
couple
years
would
be.
We
would
be
facing
a
lot
of
issues
and
challenges
both
for
the
community
and
for
ourselves
and
I.
Think
we're
going
to
see
that's
next
budget
cycle,
so
I
well,
I.
Think
the
idea
of
meeting
30
days
to
tackle
this
early
is
good.