HomeMy WebLinkAboutAgenda Packet - CC - 2016.03.16NGAMEBURLI
City of Burlingame BURLINGAME CITY HALL
501 PRIMROSE ROAD
BURLINGAME, CA 94OIO
Meeting Agenda - Final
City Gounci!
wednesday, March 16, 2016 6:30 PM Council Chambers
Note: Public comment is permitted on all action items as noted on the agenda below and in the
non-agencla public comment provided tor in item 1.
speakers are asked to filt out a 'request to speak' card located on the table by the door and
hand it to staff, although the provision ot a name, address or other identifying information is
optional. Speakers are limited to three minutes each; the Mayor may adiust the time limit in
tight of the number of anticipated speakers.
All votes are unaniflous unress separately noted for the record.
1. CALL TO ORDER - 6:30 p.m. - Council Chambers
2. PLEDGE OF ALLEGIANCE TO THE FLAG
3. ROLL CALL
4. PUBLIC COMMENTS, NON-AGENDA
Members of the pubtic may speak about any item not on the agenda. Members of the public wishing to
suggest an item lor a future Council agenda may do so duing this public commont peiod. The Ralph M.
Brown Act (the State local agency open meeting law) prohibits the CW Council from acting on any matter
that is not on the agenda.
5. INTRODUCTORY REMARKS - Lisa Goldman, City Manager
Printed on 3/11/2016
6. STAFF REPORTS AND COMMUNICATIONS (Public Comment)
a. Adoption of a Resolution Amendinq the FY 201 5-'16 Operatinq and Capital Budqets to
Reflect the Recommended Mid-year Adiustments and Adoption of a Resolution Further
Fundino the Renewal and Replacement Reserve in the Ciw's CaDital Proiects Fund
Allachrnen'sj Staff Reoort
Resolution - Mid-vear Budoet Amendments
Resolution - Fundino of Renewal & Reolacement Reserve
City Council Meeting Agenda - Final
b
7, COUNCIL DIRECTION ON BUDGET POLICY ISSUES
8. ADJOURNi'ENT
Notice: Any attendees wishing accommodations for disabilities please contact the City Cled< at
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pubtic rcview at the cily clerk's otfice, city Hall, 501 Primrose Road, from 8:00 a.m. to 5:00 p.m.
before the meeting and at the meeting. Visit the City's website at www.buflingame.org. Agendas and
minutes are available al th,s slte.
NEXTCITYCOUNCILMEETING-NextregularCityCouncilMeeting'Monday,March21,
20't6
VIEW REGULAR COUNCIL iIEETING ONLINE AT WWW'BURLINGAME.ORG - GO TO
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Any witings or documents provided to a mahnty of the city council regarding any item on this
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Pdntoel on 3n1/2o16
March 16,2016
Review of Draft FY 201G17 General Fund. Gas Tax. Measure A. and Measure M
Funds Caoilal lmorovement Prooram (ClP)
Anachments: Staff ReDorl
Drafr FY 2016-17 G€neral Fund CIP SDreadsheet
PowerPoint Presentation
City ol Budlngane
STAFF REPORT
I,IEETING DATE: March 16,20'16
To:Honorable Mayor and City Councit
Date: March 16,2016
From: Carol Augustine, Finance Director - (6501 558-7222
Subject:Adoption of a Resolution Amending the FY 2015-16 Operating and Capital
Budgets to Reflect the Recommended Mid-year Adjustments and Adoption
of a Resolution Further Funding the Renewal and Replacement Reserve in
the City's Capital Projects Fund
Staff recommends that the City Council accept the FY 2015-16 Mid-year Financial Summary and
Five-Year Financial Forecast, and adopt the attached resolulions amending the FY 2015-16
Operating and Capital Budgets to reflect the recommended mid-year adjustments and further
fund the Renewal and Replacement Reserve in the City's Capital Projects Fund.
BACKGROUND
This report summarizes the City's mid-year fiscal status by providing an analysis of anticipated
revenues and expenditures in comparison to the current adjusted budget for the 2015-16 fiscal
year. Revised forecasts incorporate final201+15 fiscal year results, year{o-date cash flow, and
other data points that were not available when the budget was originally developed.
To the extent possible, trends or emerging items that were not included in the City's operating
budget have been identified, and the budgetary impacts of these items have been assessed. ln
addition, this report notes changes in activities that have very little overall impact to the budget,
but allow for better alignment with Council goals and departmental directives. Although the focus
of the mid-year review is the City's General Fund, this report also provides an update for other
funds where fiscal changes are noted. The attached budget resolutions are recommended so
that the current budget will not only provide the proper funding needed to carry out the programs
and activities anticipated through June 30, 2016, but will also more accurately reflect the financial
condition of the City as it enters the FY 2016-17 budget process. Having the latest projections
reflected in the current budget enhances the forecasting process and allows decision makers to
have greater confidence in the information provided within the budget development framework.
ln addition, during this time of economic groMh, the City is able to set aside further funding for an
ever-growing list of unmet capital needs.
Considering current economic conditions and this most recent analysis of operations, staff has
updated the assumptions and projections incorporated in the City's five-year financial forecast for
AGENDA NO: 6a
RECOMMENDATION
March 16, 2016
the General Fund. This long{erm forecast establishes an appraisal of fiscal sustainability beyond
the current budget cycle, providing important context to the annual budget process.
DISCUSSION
Economic Conditions
National Economy
At the time the City's FY 2015-16 budget was being prepared, the national economy was in its
fifth year of a gradual recovery from the worst recession since the Great Depression of the
'1930s. Most forecasts indicated that the economy would continue to grow at a moderate pace,
perhaps less sporadically than in the years immediately following the recession. The single
largest driver in the economy in 2014 had been significant improvements in the job sector, with the
unemployment rate falling below 6 percent nationwide. Businesses had begun lo increase capital
investments, the housing market was providing momentum for the construction industry, and
consumer sentiment was improving. Consumer spending had added 1.7 percent to overall GDP
groMh in 2014 - the best showing since 2006. GDP growth was anticipaled to be in the range of
2.8 lo 3.2 percent.
ln the end, U.S. real GDP increased 2.4 percent in 2015, the same rate as in 2014. Although this
measure of the nation's economic growth would indicate a pace similar to previous years of
moderate recovery, the numbers actually reflect strength in the midst of global economic turmoil
and plunging commodity prices. According to Beacon Economics, a leading independent
economic research and consulting firm, low inflation and interest rates continue to support
spending. As such, real GDP growth is projected to grow at about 3 percent in upcoming years.
U.S. Real Gross Domestic Product
Quarter-to-Quarter Growth, Annualized
3 906
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Sourc.: U.S. Bur..u of Economic An lysis: CA O.p.rnn.nt of Financ! Gov.rno/3 Budgpt For.cast.
2
20 1 5-1 6 Mict-Ye ar Re poft
201 5-16 Mid-Year Repo,l March 16, 2016
The U.S. unemployment rate dropped to 4.9 percent in January 2016, its lowest level in eight
years. However, most economists feel the labor markets are still far from full recovery, due to the
higher than normal U-6 alternate unemployment rate, which accounts for discouraged and under-
employed workers. While hiring appears to have slowed down (with only 151 ,000 jobs added in
January), wages were up. lf this trend continues, this should bolster consumer confidence in the
near future.
Gasoline prices continued to fall, and the impact is finally producing spending increases in other
categories. Although consumer spending is only inching upward, final demand (direct spending
by US consumers, businesses and government) is growing at close to a 3 percent pace this year,
one of the fastest rates since the start of the recovery. So, although lower gas prices are not
good for all industries and areas of the country, the gains to the U.S economy are, on net, very
positive.
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Also helping the economy in 2015 will be low mortgage rates, which are below 4 percent.
lnflation is very tame (at about 1.4 percent) because excess bank reserves remain steady. ln
light of improvements in the economy, the Federal Reserve raised the benchmark interest rate by
0.25 percentage point for the first time in seven years in December 2015. Although the Fed was
poised to continue to increase short{erm rates very gradually, minutes from the January Federal
Open Market Committee meeting indicated that data on spending and production had been
disappointing. Developments in commodity and financial markets, as well as the possibility of a
signilicant weakening of some foreign economies, had the potential to further restrain economic
growth. lnterest rates are still expected to increase, but only very gradually, in 2016.
China's growth slowed in 2015, and there is some uncertainty about the growth path in the
European Union. Slower growth in one or both could dampen U.S. growth as well. As it appears
that the pace of global groMh will be slow at best, economists are not overly optimistic about any
significant gains in the U.S economy. But the forces that drive internal growth are positive: rising
incomes, low interest rates, moderate inflation and increasing profits should serve to keep the
economy on track in the near future.
3
,-:
2O1 5-1 6 Mid-Year Report March 16, 2016
State Economy
California's economy also continues to improve. Governor Jerry Brown released his proposed
budget in early January, predicting steady growth in the economy and making additional strides
toward fiscal reform. As the strengthening economy continues to push revenues higher, his State
budget proposal provides increased investments in K-12 education, community colleges and
health programs, as well as further reductions in the State's long-term liabilities, and a further
funding of the rainy day reserve. The turn-around in California's fiscal situation continues to
provide optimism throughout the state's economy. ln fact, the state continues to be a significant
source of the nation's current economic growth.
California leads the nation in job groMh: the Professional and Business Services sector alone
provided 1 16,000 jobs in 2015, reflecting a generally improving economic environment.. The
Leisure and Hospitality (79,100 jobs) and Construction (41,000 jobs) sectors were another major
source of growth as both the tourism and building industries have been thriving. Although still
higher than the nation as a whole, the state unemployment rate has dropped to 5.8 percent from
a peak of 12.4 percent in 2010. Yet much like the nation, California's labor force participation rate
has reached historic lows of 62 percent. Many residents marginally attached to the labor force
are expected to have better prospects in the coming years, and lhe unemployment rate is
expected to fall very gradually as state-wide labor force participation stabilizes. Although
economists from the UCLA Anderson Forecast expect California's unemployment rate to match
the national rute in 2017, the Governor's forecast calls for the rate to be "insignificantly different"
than the U.S. rate for the next several years.
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U.S. drd CrtifornLa Unerploytneot Rde
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Most economists expect real personal income growth, estimated to be 4.3 percent in 2015, to
grow in the range of 3.2 percent to above 5 percent in each of the next two years, as a tighter
labor market results in higher wages for more workers.
4
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\
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March 16, 2016
Califomia's manufacturing industry has traditionally been very strong, and it currently has the
largest manufacturing output in the U.S. However, high costs of doing business are incentivizing
many firms to locate their manufacturing activities elsewhere. These companies are relocating
abroad or to other areas within the U.S., such as the Southeast and Midwest. Manufacturing
firms contributed 9.4percent of total private employment and generated 10 percent of gross state
product. Expansion in the industry tends to be spurred by highly skilled processes. Electronic
computer manufacturing was one of the faster{rowing subindustries, notching 7.3 percent
groMh year over year. Continued strength from technology firms, especially in the San Francisco
Bay area, supports electronics manufacturing demand. Nonmetallic mineral product
manufacturing was another high{rowth segment in 2015. This subcategory produces glass, clay,
lime and cement, and it is correlated to construction groMh.
Real estate remains a driver of economic growth over the short run. ln regards to residential
property, existing home sales in 20'l 5 represented a 6.3 percent increase over 2014; the
Califomia Association of Realtors' forecast calls for existing home sales to rise an additional 6.3
percent in 2016. The state's rising prices are predicted to hold back home sales slightly. While
the recent rate of home appreciation has slowed from the double-digit rates in 2013 and eady
2014, home prices state wide remain below their pre-recession peak of roughly $450,000' and
the state continues to experience a Shortage of housing. The Califomia median home price is
projected to increase 3.2 percent to $49 1 ,300 in 20 16, following an estimated 6.5 percent
increase in 2015 to $476,300. Certainly housing prices have been rising faster than the overall
index, and are expected to keep inflation somewhat higher than the nation. After a few years of
relatively low levels of housing permits being issued, forecasters expect that strong growth will
resume in 2016.
The latest Allen Matkins/UCLA Anderson Forecast Commercial Real Estate Survey found
"continued confldence among developers through 2018". The biannual survey projects a three-
year outlook for California's commercial real estate industry and forecasts potential opportunities
and challenges affecting office, multi-family, retail and industrial sectors. The majority of office
developers had a promising outlook for California, supported by job and income growth on the
demand side and a lack of sufficient building on the supply side. However, anticipated slower
growth outside the U.S. and the somewhat volatile world financial markets "dictate a bit of prudent
caution", per the report. The proposed State budget indicates that nonresidential permits are
already growing strongly as firms hire more people and expand their businesses.
Local Economy
On the global stage, the U.S. economy is a success story. But nationally, the recovery is
bifurcated. People with 2oth-century skills are still struggling to find full employment. ln California
there's a marked difference between the coastal counties and the inland counties in employment
loss recovered. With its emphasis on the tech sector, the San Francisco Bay Area economy
continues to outperform the nation.
2015-16 Mid-Yeat Repoft
The Governor's budget also notes a slowdown in the global economy as one of the main risks to
the state's economy. Stock market volatility adds additional risk to the forecast. Although the
State is much befter positioned for the next economic contraction, a recession would likely be
accompanied by a large fall in the stock market, strongly affecting state revenues.
201 5-16 Mid-Year RepotT March 16, 2016
While growth in FY2015-16 is expected to slow to a more moderate rate than experienced in the
past two years, the Bay Area's economy is still expected to grow faster than nearly all other large
metropolitan areas in the country. ln San Francisco alone, the economy expanded between 201'l
and 2013 at a rate that outpaced the four largest groMh years of the dot-com boom. There are
now more people employed in San Francisco than at any point before in the City's history. The
tech sector has accounted for a quarter of the region's,ob growth since 2010. lf one considers
the "multiplier effect" of tech employment (how many local jobs are created by each added tech
worker), tech is responsible for two{hirds of the Bay Area's employment growth. This follows
significant flows of venture capital money that have come into the area. San Francisco received
over $8.5 billion in venture capital investment during the first half of 2015, a 53.4o/o increase over
the first half of 2014. More importantly, despite concerns about another tech bubble in Silicon
Valley, firms receiving venture capital are older and more stable than those in previous cycles.
Other sectors that have contributed to the area's surge in job creation over the past year are
Construction (6.3 percent), lnformation (6.2 percent), and Other Services (5.7 percent). Like the
Professional, Scientific, and Technical Services sector, the lnformation sector includes high-tech
industries, such as data processing and software publishing. These industries have seen
considerable gains in recent years as many companies try to cash in on the'app'market and
other media-related technology. With such strength in the labor market, the San Francism
Metropolitan Area's unemployment rate is forecast to hold steady, in the 3olo to 3.5% range,
through the end of 2020.
A tightening labor market has the impact of driving higher wages for workers and an influx of
people seeking opportunity. The growing population is putting pressure on existing housing,
office space and infrastructure, all of which are struggling to expand within the constraints of the
Bay Area. Although statewide there is a long{erm trend to construct more multifamily housing of
the type demanded by most urban workers today, the places where there's demand are harder to
build in. Construction in the region is cunenlly experiencing strong growth, with multi-family
permitting particularly strong. During the first seven months of 2015, there were 3,034 multi-
family permits issued in the region, a 43.7o/o increase over the first seven months of 2014.
However, the region's high housing costs are expected to limit grov'/th in future years. Overall
construction costs for commercial office buildings and tenant improvement projects are expected
to continue to rise in the San Francisco Bay Area through 2016 and perhaps as far out as 2Q2O.
While the price of construction materials is likely to trend downward in 2016 - the result of a
relatively weak housing market and reduced demand from China - labor costs are likely to drive
overall costs higher, especially in San Francisco, which already has higher than average labor
costs in the construction sector.
The median price for an existing single-family home in the San Francisco MD has climbed into
record high territory, making this area the first in the state to surpass its previous peak for the
median price of an existing home (set in 2007). Because the Bay Area's recovery is so strong,
with its increasing work force in professional and technical occupations comes a surge in rental
costs. The Bay Area rental market was brutal last year for people trying to find something they
can afford. The region saw increases in 2015 of about 10 percent in San Francisco, 11 percent
on the Peninsula, and 12 percent in the East Bay. And analysts say that it's not going to be much
better in 2016. Atthough construction starts are at the highest level in about 30 years, new units
6
201 5-1 6 Mid-Year Report March 16, 2016
are priced to cover developers' costs and meet their profit projections. When the demand is high,
rental rates go up. Beacon Economics sees home prices continuing to increase in the coming
year, albeit at a slower pace than experienced over the past two years.
Because the San Francisco Metropolitan area continues to be one of the United States' top
tourist destinations, Burlingame has seen strong growth in hotel tax revenues and consumer
spending. With an 84.7 percent occupancy rate in the first six months of this fiscal year, hotels in
the area are among the most occupied in the country. (The nationwide average for hotel
occupancy rates is 64.2 percent.) Revenues were up 12.6 percent from the same period last
year. As noted in the General Fund Revenue analysis (Attachment A), transient occupancy tax
receipts in fiscal year 2014-15 were nearly '11 percent ($2.3 million) higher than in the prior fiscal
year.
As in other cities in the region, spending on autos, general consumer goods, and restaurants was
up through the first half of calendar year 2015. Burlingame sales tax receipts in the 3'd quarter of
2015 were 5.8 percent above the same quarter of the previous year. The largest growth was in
the autos and transportation sector, as new motor vehicle dealer results combined with auto
lease totals to generate this grov'rth.
s8.000
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-
Budingeme
Q3
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County Califomia
Again, although increasing incomes and wages among local residents has helped fuel taxable
sales, the high cost of housing in the region could impede growth in consumer spending in
coming years. As more and more residents spend a larger portion of their income on housing,
less money is left to purchase goods and services.
ln short, the state and local economic outlook is expected to coincide with the national outlook of
continued recovery. As the San Francisco Bay Area is currently a "hot spot' for the growing
economy, it may experience a stabilization effect sooner than other parts of the state.
Even with the positive economic trends of the last three years, budgets have been developed with
a relatively conservative approach. The recession brought home the realization that some of the
City's largest sources of revenue are highly votatile, inexorably linked to the health of the general
7
SALES PER CAPITA
Q3
15
2015.16 Mid-Year Repod March 16, 2016
Although renewed emphasis on budgeting for the longer-term will provide more certainty for
future budgets, the City ernnot have a true budgetary "surplus' if unfunded needs continue to
grow. The establishment of the Other Post-Employment Benefits (OPEB) trust account was a
significant step in identifying unfunded liabilities and systematically providing for them within the
operating budget. Although pension reform has somewhat curbed the growth of these liabilities,
accrued obligations are being addressed by CaIPERS by increased employer contributions.
Other liabilities await funding, however. The deferral of maintenance to infrastructure and
facilities has resulted in an increase of projects on the City's list of "unfunded needs." Staff will
strive to identify these deferrals and recommend their systematic funding within the operating
budget (of the appropriate fund) whenever possible.
General Fund
The city's FY 201 5-16 budget anticipated that the economy would continue to grow at a
moderate pace. Mindful of the difiicult budget reductions that were made following the recession,
departments were not required to provide further expenditure reductions for this mad-year
analysis. However, departments were asked to identify, to the extent possible, additional funding
sources or revenues in order to offset any additional budgetary needs.
Now, with more than half of the fiscal year of actual transactions under analysis, the City's year-
end General Fund revenues are cunently pdected to be over $4.6 million higher than projected
in the FY 2015-16 adopted budget. Most ofthe growth comes from increased tax revenues, and
reflects real progress in terms of the local economy. Details of the City's General Fund Revenue
analysis at mid-year are provided in Attachment A of this report.
Expenditure budget revisions are discussed in more detail in Attachment B of this report. The
adjustments reflect an attempt to adjust certain departmental budgets to more accurately reflect
cunent needs, in response to unanticipated events, a change in programming direction, or access
to information that was not available at the time the FY 2015-16 budget was proposed. The
resulting budget should provide a clearer, more transparent picture of operating needs going
fonrvard. This is particularly important in establishing the framework for the FY 2016-17 budget,
where funds needed for continued service levels will be considered in the context of the City
Council's established goals.
General Fund - Revenues
The following table shows the mid-year assessment of FY 201 5-16 General Fund revenues.
There are three columns for fiscal year 2015-16. The "FY 2015-16 Cunent Budget" column
shows the revenue budget adopted by the City Council last June. The "FY 2015-16 Mid-year
I
economy and events that cannot be anticipated in the short term. The recovery has been
tentative at times, and accompanied by increases in certain operating costs - particularly in the
area of personnel benefits - that need to be considered. The General Fund five-year financial
forecast is provided in the final section of this report. ln conjunction with the General Fund
Reserve Policy, this long-term approach to the City's budget helps ensure that future economic
downturns can be managed effectively.
201 5-1 6 M id-Ye ar Re port March 16, 2016
Projection" column shows the most current projection for the fiscal year. The final FY 2015-16
column reflects a summary of proposed revenue amendments to the FY 2015-16 budget for the
City Council's approval with this Mid-year Report. For comparison purposes, the table also
includes the City's actual General Fund revenues in fiscal year 201+15, as well as flgures for the
previous fiscal year. Yearto-date revenues are not included here as the timing variability within
each different category greatly complicates the analysis and would make for a confusing
presentation as a whole. However, year-to-date receipts may be discussed in the various
categories of revenue as they relate to a revised FY 2015-16 projection.
The key factors that pertain to staffs recommended adjustments to each of the City's General
Fund revenue categories are discussed in Attachment A of this report. The amended forecast
for the City's largest revenue sources (Property Tax, Sales Tax and Transient Occupancy Tax) is
not only based on the previous year's receipts, but also on the continued strength of the local
economy as reflected in cash receipts for the cunent fiscal year. ln fact, most revenue sources
show continued improvement over the FY 2015-16 actual amounts, with receipts comparing
favorably to the prior fiscal year. Note that last year's actual amounts included $"1 million in one-
time revenue from Millennium Partners, the original Burlingame Point developer, per the
approved Development Agreement, shown as "other revenue". There are no similar projections
for future one-time revenues in FY 2015-16 or in the five-year forecast. Such items can be added
when the amount and timing of these unanticipated receipts is certain.
General Fund - Expenditures
The following table shows the mid-year assessment of FY 2015-16 General Fund expenditures
by department:
o
FY15-15
Midyear
Pioi€ation
FY15-16
Midyear
Amendment
Year-End
Up (Oownl X
l7,7t6,400
13,244,O00
25,200,000
816,400
1,659,000
2,100,000
6s,487,600 4,629 7.1%
FY13-14
Actual
FY14-15
Actual
FY15-16
C!fient
Eudget
15.496,548
10,196,123
2t3s7,066
t6,677,381
11,100,900
23,69a396
toperty Tax
sales.nd t se l.r
Tranahnt Ocaupancy Tax
Othe.Tares
FranchiseTar
Business LicenSes
StAtE HOPTR
Real Property Tran5fe. Tax
llc€nres & Permits
tiner, Fodeiture! and Penahres
Uie ot Money & ltopcrty
cha4es fo. s€dices
Othet Ravenue
State Subventlons
lntercst lncome
Total, General Fund Revenue
1,583,000
1,000.000
66,000
350,000
85,000
96s,000
206,000
4 AO3,s00
30,000
175,000
400,000
s5,627,624 61,909,081 6ors8J00
CITY OF BURLINGAME, CA
SUMMARY OF GENERAI. FUND REVENUES
4.4%
14.3%
9.t%
1,602,000 19,000 t.2%
973.000 -27,@0 -2.7%
66,000 0 0.0%
472!oO 112,000 31.1%
87,000 2,000 2.4%
836,000 -129,000 -13.4%
220,5@ 14,500 7.O1"
4,544,200 140,700 3.2%
46,500 16,500 55.0%
157,000 -18,000 -10.3%
323,000 -77,000 -19.3%
16,900,000
11,585,000
23,100,000
L57S,S2I L,579,976
981,821 965,675
54,968 64,810
347,855 436152
1tL,7!2 83,840
788,772 837,704
203,451 207,952
3,942,937 4,481,618
165,628 1,(x6,512
170,746 465,125
225,080 260,740
2015-16 Mid-Yeat Repod March 16, 2016
CITY OF EURLINGAME, CA
SUMMARY OF GENERAT FUNO EXPEI{DITURES
BY Gen€6lFund Proardm
Generdl tovemment
Public Sefety
Public worts
Community Development
leisure & Cu ltuia l Services
TOTAL, Operating Expenditures
FY20l3-14
A.tuals
FY2014-15
actuala
FYt5-15
CuJaent
gudget
FY15-16
Midyear
Projectio.
FYlS-16
Midyear
Amendment
Year-End
up(Ooun) %
s5.870,151
79,775,505
3,339,585
1,0!.L,240
10,112,681
54,72t,895
22,7't3,494
4,769.a73
L,244,t99
!1,495,624
ss,L78/52
24571,008
4.971;135
L,563,474
L3,206,753
s5.1r2,"t52
24,936,m8
4,9t4,735
1,563,474
13,258,7s3
(s66,000)
36s,000
0
52,000
-t.3%
1.5%
0.o%
o.o%
0.4%
5,o,r39,r52 S44,40s,084 S 49,134,722 5 49,7as,722 5 351,000
Again, there are three columns for fiscal year 2015-16. The "FY 201$16 Current Budget' column
shows the budget adopted by Council in June 2015. Although the departmental budgets were
intemally adjusted for encumbrances of the prior fiscal year, the encumbrances are excluded for
this mid-year analysis. The second FY 2015-16 column shows the new mid-year projection for
each department's expenditures for FY 2015-16. The final FY 2015-16 column shows the
resulting amendments to the FY 2015-16 adjusted budget to reflect additional resources required
(or anticipated operational savings) by departments for the remaining fiscal year. For comparison
purposes, the table also includes the City's General Fund actual expenditure performance in
fiscal year 2014-15, as well as figures for the previous fiscal year. Budgetary savings (positive
expenditure variances) within the General Fund in fiscal yeat 201+15 were experienced in all
departments, resulting in expenditures of $3.5 million (roughly 7.3 percent) less than budgeted for
the fiscal year. Since local government expenditure budgets (appropriations) serve as the legal
level of budgetary control, some level of savings will be realized in any fiscal year. Although
departmental budgets were analyzed for both underfunded operating needs and anticipated
budgetary savings, the focus was on ensuring budget adequacy for General Fund operations for
the remainder of the fiscal year.
There are fewer adjusting entries recommended for expenditure budgets in this analysis than
recommended for the City'S General Fund revenues. The only significant expenditure
amendment needed is to properly reflect higher pension contributions to the CaIPERS pension
system (pooled Safety Plan) for the current fiscal year. Although the higher contributions will
serve to more quickly fund the plan's previously accrued liabilities, the additional amount needs to
be provided in the General Fund's operating budget. (Unlike Enterprise Funds, the General Fund
reports only current assets and current liabilities, so pension contributions are treated as
expenditures of the fund in the period in which they are pald. GASB 68, implemented in FY 2014-
15, requires that governmental pension liabilities be accrued and reported on the City-Wide
Financial statements, but not within the funds themselves.) This adiustment represents a 26.2
percent increase in this line item for the Police Department. Other expenditure adjustments were
fairly minimal in amount, or offset by operational savings elsewhere in the department. Proposed
revisions to General Fund Expenditure Budgets are explained in detail in Attachment B.
Again, additional budgetary savings are a certainty, because the expenditure budgets reflect the
limit of spending levels for each department. Departments are only able to expend or commit
funds up to this legal level of budgetary control. Because these budgetary controls are
established within each category of departmental expenditures, budgetary savings tend to
average 2-4 percent of the annual expenditure budget. ln recent years, the city experienced
higher{han-average expenditure variances due to savings in the category of personnel costs
10
0.7%
20 1 5-l 6 Mid-Ye ar Report March 16, 2016
from elevated levels of position vacancies. However, vacancy levels appear to have returned to a
normal rate. For this reason, it is anticipated that the City will experience a budgetary savings in
the range of $1 - $2 million in the cunent fiscal year.
ln addition to the adjustments to operating expenditures noted above, a transfer out of the
General Fund to the City's Renewal and Replacement Reserve in the Capital Projects Fund
reflects the $2.5 million reduction of the General Fund Catastrophic reserve approved by the
Council in October, discussed below.
General Fund Ooeratino Summarv
A summary of the impacts to the General Fund of the adjustments made as a result of this mid-
year analysis is shown in the schedule below:
CITY OF EURLINGAME, CA
GENERAI FUI{D OPERATING SUMMARY
FY2014-15
Adual
FY20l5-15
Current
Eudget
FY2015-16
Midyear
P.oiection
FY2015-15
Mkiyear
Amendment
TotalRevenue s 51,909,081 s 50,8s8,s0o 5 6s,487,600 s 4,529.100
Expenditures
Depaatmental Expenditutes
Transfe6ln (Out)
Total Expendhures
(44,405,084)
lLo,927,a74l
lL49iA;1221 ,.49,185,722)
(10,692,973)
(351,000)
(2s0,000)(LO,442,9731
(ss,332,9s8) (s9,877,69s) (5O,478,69s) (601.000)
6,s76,723
0
980,805
0
5,008,90s
(2,s00,000)
4,O28,700
(2.s00,000)
Chante in GeneralFund Balance
Adjusted by the recommended amendments in this report, the General Fund shows a projected
surplus (positive net operating revenues) for fiscal yeat 2015-16 of approximately $5 million,
which is $4 million higher than initially forecast, due largely to higher revenues than anticipated in
the fiscal year's original budget, as summarized in this report.
ln January 20'15, the City Council approved a General Fund Reserve Policy that recognized the
need for adequate reserves to guard against future economic downturns, as well as to provide a
hedge for catastrophic events. ln addition, in recognition of Burlingame's significant unfunded
capital planning/facility needs and the continued impact of these needs on the City's financial
flexibility, the Council also approved the establishment of a Renewal and Replacement Reserve
within the Capital lmprovement Projects (ClP) Fund. The purpose of the Renewal and
Replacement Reserve was to prevent further accumulation of unfunded liabilities that aging
facilities represent. lt was initially funded with a General Fund transfer of $3 million, a reflection
of the fund's operating surplus in fiscal year 2013-14. ln October, the General Fund Reserve
policy was updated based on a refined analysis of the optimal reserve level for catastrophic
events. The analysis supported a decrease in the Catastrophic Reserve to $2 million, with a
more robust strategy to cover the potential of damages in excess of this new reserve target.
11
Net OperdtinS Reven ue
Transfer to CIP Renewal & Replacement Rele e
S 6,s?6,123 $ gto,Eos S 2,508,905 S 1,528,100
2015-16 Mid-Year Repoft March 16, 2016
Alternative strategies, such as catastrophic insurance, are being investigated by ABAG PLAN
(Associated Bay Area Governments Pooled Liability Assurance Network Corporation) of which
the City is a member. The $2.5 million reduction was to be offset with an increase in the Renewal
and Replacement Reserve. The transaction is included in this mid-year report as a transfer out to
the City's Capital Projects Fund. Note that, unlike other amounts reflected in the fund balance of
the Capital Projects Fund, Renewal and Replacement Reserve funding will not be appropriated to
a specific project. Rather, it will accumulate for capital projects to be initiated when timing is
optimal and sufficient other funding is identified.
General Fund Balance
Once all the mid-year adjustments are posted, the General Fund shows a projected total fund
balance of $31.7 million at the end of the 20'15-16 fiscal year.
CITY OF BURLIN6AME, CA
CHANGES TO GENERAL FUND BALANCE
FY 2015-15
Midyear
Proiection
FY 201lL15 Beginnlng Fund Balance
Pmiected Revenues & Expenditurcs
Projected betterthan budgeted revenue performance
Projected departmental expenditures
subtotal, Revenues Net of Expenditures
General Fund Long-Term Debt
Transfe6 ln (out) of General Fund
s 29,237,630
65,487,600
49,7A5,722
15,701,878
Due to a budgetary surplus in fiscal year 2014-15, the beginning General Fund balance was over
$5.1 million higher than anticipated in the prior year budget, creating a relatively large unassigned
fund balance. ln the cunent fiscal year, the projected fund balance is also projected to grow. The
$4.6 million anticipated increase in revenues now p@ected for FY 2015-16 is offset with slight
expenditure adjustments and the $2.5 million funding of the Renewal and Replacement Reserve
(from reduction in the General Fund's Catastrophic Reserve).
CITY OF BURLINGAME, CA
GENERAI. FUND BALANCE ASSIGNMEi{TS
FY2014-15
A.tual
FY2015-16
Midyear
Proiedion Up (Oown)S Up (oown) %
Economic Stabllity Resewe
Catad,ophic Reserve
GeneralPlan Resewe
Contintency Reserve
Subtotal, AssiSned Fund Balance
s 13,30q0o0
4,s00,000
0
500,000
s 1t700,000
2,000,000
0
s00,000
2,400,000
(2,s00,000)
0
0
18.0%
-55-5%
o.o%
o.o%
Add: Una5signed Fund Balance
18,300,000
10,465,052
18,200,000
13,546,535
(100,000)
3,081383
-0.5%
29.4%
Total, Ending Fund Balance I2a,76s,0s2 S 31,746,53s S 2,981,483 to.4%
12
16,4A4,?37].
16,788,2421
Proiected General Fund Balance, net of trdnsfers S3f,7/f6,535
201 5-1 6 Mid-Year Report March 16, 2016
Once funded as approved ln the General Fund Reserve Policy, the City's reserves ($'18.2 million)
comprise the largest portion of the General Fund's ending balance. Approximately $13.5 million
remain as "unassigned fund balance", available for future appropriation. Similar to the use of
unassigned fund balances from the prior fiscal year and in recognition of the City's large backlog
of facility needs, staff recommends that the Renewal and Replacement Reserve be funded by an
additional $5 million. The Renewal and Replacement Reserve was established with the intent of
providing funding for the replacement of City assets. Governmental funds (as opposed to
Enterprise Funds) do not incur annual charges for depreciation of assets; therefore these costs
are recognized only when the asset needs to be replaced. The City's list of capital/facilities
needs will continue to grow; the Renewal and Replacement Reserve is a mechanism to
accumulate funds to offset these needs. As such, the funds in this reserve are not appropriated
to a specif1c pqect, but would be available for capital projects to be initiated when timing is
optimal and sufficient other funding is identified. Staff is developing a framework for a reserve
policy specific to this Capital Project Fund reserve for City Council consideration and discussion
early in the 2016-17 fiscal year.
CIW OF BURLINGAME, CA
CHANGES TO RENEWAL AND REPTACEMENT RESERVE
5 3,ooo,0oo
3,000,000
2.500.000
s 8,s00,000
s.000.000
5 13,s00,000
13
ln addition to this funding of the Renewal and Replacement Reserve, staff recommends that the
City Council consider earmarking funds from available balances toward addressing a large
backlog of work related to sidewalk and ADA-related improvements. Though the City is
attempting to address the sidewalk and ADA needs on a regular basis as part of the 50/50
program, a major effort is needed to prevent further deterioration of the City's sidewalks. Failure
to inspect and repair trip hazards increases the City's exposure to sidewalk liability claims, which
can significantly burden the General Fund operating budget. Even if no injuries occur, when
people in wheelchairs or others with mobilily impairments are prevented from accessing public
pathways, the City could be found in violation of the Americans with Disabilities Act. This effort is
estimated to cost approximately $10 to $'15 million. As not all improvements can be completed
within one fiscal year, this poect will be added to the City's already aggressive five-year Capital
lmprovement Program (ClP) beginning in FY 2016-1 7.
General Fund Reserve Poticy - As of June 30, 2016, the projected fund balance of $31.7 million
represents nearly 64 percent of General Fund operating expenditures of $49.8 million. The City's
General Fund Reserve Policy and resulting reserve target was based on an assessment of the
City's revenue volatility and infrastructure risks, as well as the possibility of extreme events, in
establishing a reserve target specifically for the City of Burlingame. As such, the Council's
reserve management strategies reflect best practices in public finance. The $18.2 million in
Beginning Balance 7 I ll 15
Budgeted Transfer from General Fund in FY2015-16
Decrease in Catastrophic Reserve Fund (mid-year)
Proiected Ending Bala nce 5/30/16
Recommended add'l transfer from General Fund
Recommended Ending Balance 6/30/15
201 5-1 6 M id-Ye ar Re port March 16, 2016
reserves represents an amount equal to 31 percent of projected General Fund revenues
(excluding one-time revenues) for the year; the reserve policy calls for an Emnomic Stability
Reserve of 24 percent of budgeted revenues, a Catastrophic Reserve of $2 million, and a
$500,000 Contingency Reserve.
Other Funds
Other Funds - All City funds were reviewed for this mid-year analysis. The recommended
revenue adjustment for most funds is the result of anticipated earnings allocations from the City's
investment portfolio, explained in the General Fund Revenues section of lhis report (Appendix A).
The recommended adjustments are shown below:
lnterest lncome Ama'r,|dmerts
FY 2015-16 2015-16
Fund
aot4-ts
Actual
Current
Bud8et
Midyea,
Proiection
Midyear
Amendment
GenealFund
Gas Tax Fund
S€wer Fund
Solid wane Fund
Parkng Enterp.ise Frrnd
Brrilding Enterprise Fund
worker's Comp€Nation Fund lsF
Equipment Services Furd ISF
I nformation Services Fund lsF
GerEralLiability lsF
storm orainaSe Fund
Debt Service f'rrd
Tot l
2fi)n 5
17,268
11,271
119,103
106,fi1
24,228
24,721
33,151
41,556
40,195
s,289
17,4U
67,424
6,659
400,0m 5
30,(m
323,000 $
20,0q)
13.m0
135,0@
120,000
28,m
33,000
38.000
41trfo
45,0m
6,0m
20,0@
78,000
8,000
07,mo)
(10,m0)
13,M
(5s,m0)
(30,m0)
(12,m0)
(17,m0)
(12,m0)
4Zm0
3,ofl)
2,0m
5,(m
(22,000)
(7,m0)
200,000
150,(m
40,0m
50,0m
so,0m
42,m
4,0m
1S,0@
1m,@o
$,m
s 792,969 s 1.104,mO s 922.mO s 1182,0001
Capitat Proiects Fund - Several adjustments were identified for the City's Capital Projects Fund,
reflecting projects closed with unused budgets. Where appropriate, unused funds will be returned
to the source fund. Within the Storm Drain and Enterprise Funds, budgetary savings will be
directed to similar projects, reducing the need for new funding in the subsequent fiscal year.
For example, the Laguna Drainage lmprovements ($1.8 million) and Neighborhood storm
Drain lmprovements No. 7 ($530,000) projects have been completed, providing an estimated
$1 1 5,OOO in budgetary savings for other storm drainage improvements. The 20"14 Sidewalk
Maintenance Program can be closed, and the 20'15 Street Resurfacing Program is also
substantially complete. The Burlingame Avenue Streetscape, which utilized a variety of funding
sources, can also be closed.
The Police Department has fully transitioned to the Sun Ridge Computer-Aided Dispatch (CAD)
and Records Management system. The system is now in use by all of the agencies in san
Mateo County, allowing law enforcement agencies to seamlessly share information. Additionally,
this system has made it possible for the Burlingame and San Bruno Police Departments to
operate a virtual 911 Dispatch Center, so that both agencies can assist one another on a daily
basis as needed. The cities also have the ability to evacuate to the other center in the event of
14
201 5-1 6 Mid-Year Report March 16, 2016
an emergency without any interruption of service to citizens. The project was completed at a cost
of $393,000, within 2 percent of the project budget.
Also in this fiscal year a budget of $70,000 was established for a Backup Recovery Server for
the City's information systems. System backups had begun to slow with the increase in data
storage; the replacement server provides new technologies that speed the process of data
backup exponentially. The equipment was procured at a cost of $43,000.
The $3.5 million Library Millennium Project can now be closed; the project began in August
2014 and officially ended in August 2015, one year to the date and on budget. The Cafe portion
of the project is now complete, and the community can conveniently enjoy a snack and beverage
in the Library. The Library's Security Camera project is also complete, with an array of server-
connected digital cameras within the library, as well as the upper and lower parking decks. The
Library system is now linked to the Police system to deliver real-time information should an
emergency arise.
After a joint meeting with the Burlingame School District's Board of Trustees in January to discuss
traffic safety and pedestrian access in the vicinity of the new Hoover Elementary School, the
City Council approved $150,000 for traffic and safety improvements at three locations: Easton
Circle, Hillside Circle at Summit Drive, and Hillside Drive between Alvarado Drive and Hillside
Circle. The improvements include crosswalks, ADA ramps, street signage, bulb-outs and stop
signs. ln addition, the Council expressed interest in determining the feasibility of constructing
sidewalks from Hoover School along Eaton Drive to Easton Circle and Summit Drive to Hillside
Circle. The scope of work will include a topographic survey and identifying right-of-way
constrainls. The feasibility study will also provide alternative solutions and cost estimates to add
sidewalk at these locations and meet roadway design standards, including potential right-of-way
takes necessary to meet objectives. The cost of the study is estimated to be $100,000.
Therefore, an additional $250,000 budget, funded by a transfer out of the General Fund, is
recommended for these two capital projects for the cunent fiscal year.
A preliminary study conducted by staff indicates that approximately $3.2M would be needed to
address the pedestrian safety improvements near Hoover School. The feasibility study will
provide more information regarding the project scope and costs; funding considerations will be
discussed in coniunction with the FY 2016-17 budget process.
Measure A Fund - This fund accounts for the City's share of the special half-cent sales tax to
fund transportation-related projects and programs. Based on improved sales tax revenues
county-wide, the FY2015-16 budget was set at a fairly aggressive level of $800,000. However,
revenues appear to be slightly ahead of target for lhe year, as shown below. $600,000 of this
year's revenues is appropriated for transportation related capital programs
Gas Tax (HUTA) - This fund is used to account for the revenue received from the State of
Califomia derived from gasoline taxes. These funds may only be used for street purposes as
specified in the State Streets and Highways Code. The projection of Highway Users Tax (HUTA)
revenues is complex, with differing allocations derived from various sections of the Code, and
differences in the allocation of gasoline tax revenues from diesel and fuel use tax revenues.
15
201 5-1 6 Mid-Year Report
Calculations are further complicated by the State's gasoline sales tax/excise tax swap introduced
in 2010, and formulas to ensure that cities and counties are "made whole" from impacts of the
swap. However, new projections for these revenues were generated using a model reflecting the
local allocation formulas, latest population estimates and state Department of Finance (DOF)
estimates of statewide motor vehicle fuel tax revenues provided in the Governor's Proposed
2016-17 budget released on January'15. These projections indicate that Burlingame will receive
approximately $673,000 in HUTA revenues in the current fiscal year, a $38,000 increase from the
adopted budget.
Note that the fiscal yeat 2O14-15 city and county HUTA allocations included a one{ime HUTA
loan repayment in addition to the normal allocations. The repayment, falling gas prices and
consumption, and a "true up" of prior year over-alloc€ltions under the fuel tax swap system has
resulted in a significant decline in revenue from this tax source. These factors were considered
when setting the reduced budget in the Gas Tax Fund for the 2015-16 fiscal year.
Water conservation efforts have served to mitigate the impact of the SFPUC's wholesale water
rate (the rate the City is charged on water purchases) increase of 28.0 percent as of the
beginning of the current fiscal year. This increase was anticipated when the budget for water
purchases ($7.3 million) was established for the current fiscal year.
[,esc
FY2015-15
8ud
20L2-11
Actuals
2013-14
Actualr
201+15
Actuals
2015-16
Adopted
Measure A
Gas Tax (HUTA}
Vehi.le Code Fines ffraffic safew)
Tot l
7t7,714 5
901,322
asA24
s
53000
824,000 s
673,0@
s93,@ s 52,m0
24,000
38,000
703,609 s
702,336
789,049 S
859,096
18ss1,704,460$1,73
16
March 16, 2016
Mkiyear
P.oie.tion
Mklyea.
Amendinent
800,0m s
535,0m
Water & Sewer Funds
ln recent years the Bay Area has been heavily impacted by the severe drought. Declining water
levels at the Hetch Hetchy Reservoir and a lack of rain and snoMall has prompted aggressive
campaigns promoting water conservation at both the local and state levels. In response to
Governor Brown's Executive Order mandating water use restrictions, the City's residents and
business owners have exceled in saving water since June 2015, reducing consumption by 30% to
date as compared to calendar year 2013. This far surpasses the State's mandate for Burlingame
of a 160/o reduction in consumption. While consumption patterns are reaching low levels due to
the concerted and deliberate efforts to conserve water, it is difficult to predict whether these
pattems will continue for the remainder of this fiscal year.
20 1 5-1 6 M id-Ye ar Re pora
a5o0
uJ00
3
March 16, 2016
Historical water Billin$ By FiscalYear
Last Three Years
-
2013-L
-
114.15
2015-16
-20r5.16
9t@
65@ ,'i, A{,un s."t4hd o.toar ll@!nb6 odabt J-Ev F6rwt M-.h ra.il Mn ,4
The City will continue to closely monitor consumption patterns in the coming months, and the City
Council will be informed if actual results deviate significantly from the mid-year forecast. ln
looking forward to the FY 2016-,7 budget, recent reports from the SFPUC indicate the projected
cost of wholesale water is expected to increase by 8.0 percent. Further information and updates
will be provided to the Council as the City's future waler rates are considered.
Note that a direct reimbursement to the Water and Sewer Funds for utility services provided to
City facilities and parks based on consumption is assumed in the FY 2015-16 budget. These
costs are now reflected as departmental costs, rather than included in the various transfers
between funds.
Solid Waste and Landfill Funds - Although significant increases in Solid Waste rates were
necessary in 201 1 and 2012 lo pay off a deficit position from the 2001-2010 contract for solid
waste services, revenues in subsequent years have been adequate to generate surpluses within
the Solid Waste Fund account. The higher rates ended the need for General Fund transfers to
support activities of the Solid Waste Fund. Afler the rate increases, revenues became sufficient
to pay the costs of all solid waste contracts and City-provided services, and provided surplus
funding of a Solid Waste Rate Stabilization Reserve. For calendar year 2016, estimated
revenues from collections for Burlingame ($10.6 million) are just adequate to cover the costs of
the City's collection contractor (Recology) of $5.8 million; disposal & processing fees of $2.9
million; franchise fees of $710,000; funding of the City's landfill post-closure costs ($a50,000);
$575,000 for costs borne by the City, including street sweeping, steam cleaning and maintenance
of public receptacles, and the household hazardous waste program; and continued funding of a
rate stabilization reserve.
Current reserve levels ($3.7 million at June 30,2015) will allow the City to modulate future rate
increases, and insure that it is in good fiscal position when the current franchise agreement with
Recology terminates at the/end of 2O2O. As noted, rates include a 5 percent surcharge for landfill
17
201 5-1 6 Mid-Year Repoi March 16, 2016
poslclosure costs. The surcharge provides revenues to the Landfill fund to cover maintenance
and monitoring functions at the landfill site, and will serve to reduce the $2.5 million fund deficit
that results from the liability recorded for future post-closure costs. No budget amendment is
required for either of these enterprise funds for the current fiscal year, and very little change is
anticipated in the budget for these activities in fiscal year 2016-17.
Description
2012-tl
Actuals
20L3-t4
Actuals
20L4-L5
Actuals
2015-15
Adopted
Budget
Construction Permit Fee
Building Plan Check Fees
Microfilm/Other Fees
Total
5 959,354 s
578,756
33,509
1,149,038
597,374
42,939
S 1,001,899 S
795,968
37,698
1,180,000
1,010,000
40,000
5 t,571,529 s 1,783,3s1 5 1,83s,s64 S 2,23o,ooo
Parking Enterprise Fund The Parking Enterprise Fund provides for the maintenance and
upkeep of the City's parking lots and metering equipment, including maintenance and utility
service for the new electric vehicle charging stations in Parking Lot V. Excess revenues that
accumulate in the fund are intended to provide funding for future parking facilities and associated
revenue mechanisms. The fund's expenditure budget appears to be adequate for the current
fiscal year. Note that prior to the cunent fiscal year, the cost of the Cily's parking enforcement
activities was also borne by this fund. Since the citation revenues generated from these activities
are credited to the General Fund, these costs are now budgeted in and charged to the General
Fund, in the Police Department's budget. The Parking Enterprise Fund budget was further
reduced by a combined $35,000 for armored car services, utilities costs and other expenses that
had been slightly over-budgeted in prior years.
tnternal Service Funds - lnternal service funds are used to account for internal costs that are
borne by all departments/programs of the City. Allocation of these centrally incurred costs is
performed based on estimated usage or other metrics. Changes to the budget of an internal
service fund do not necessarily require an offsetting change in the fund's revenues (charges to
the participating departments), as each fund has a separate fund balance that can vary due to
need. However, these funds are carefully monitored to ensure that departments are appropriately
and adequately charged.
18
EUILDING FUND - Revenues
Buitding Enterprise Fund - Revenues in the Building Enterprise Fund (largely construction
permits and building plan check fees) for the last fiscal year were only slightly higher than in the
previous fiscal year, maintaining the level of activity from the 2013-14 fiscal year, which marked a
significant increase in the volume and value of permits pulled. However, revenues were less than
projected in the 2014-15 fiscat year budget. ln the cunent fiscal year, construction fee permits
are running slightly ahead of the prior year, and building plan check fees are about 15 percent
behind. Because these revenues are difficult to project, and can swing significantly depending on
the timing of large development projects, no adjustments are recommended at this time. lf a
smaller volume of activity results in less{han budgeted plan check fees, a lower expenditure level
for plan check services will be needed than cunently provided for in the budget.
201 5-16 Mid-Year Report March 16, 2016
Workers' Compensation (WC) Fund - The City's Risk Management Fund was split into two
(lnternal Service) funds prior to the development of the FY 2014-15 budget in order to account
separately for the City's Workers' Compensation and General Liability programs. Charges to the
departments are calibrated so as to cover the costs of each type of insurance and the payment of
claims, though demands of these funds have varied considerably in recent fiscal years. After
incurring a significant drop in net position in the WC Fund in fiscal year 2013-14, charges to the
various departments (revenues to the fund) were adjusted to more adequately provide for
workers comp claims and activities. Results for the WC program in FY 2014-15 showed that the
23.8 percent increase in revenues, combined with a 60.3 percent drop in expenses, greatly
stabilized the fund's fiscal position. The reduction in the fund's expenses was the anticipated
result of an overhaul of the claims handling and adjustmenVreserves processes, which
accompanied a change in the program's third party administrator.
Note that expenses to the fund, including a provision for "incurred but not reported" claims, are
based on an actuarial report of outstanding liabilities of the program, and are subject to some
uncertainty. The City's reserves for the fund are currently funded at a less than 70 percent
confidence level; as the health of the fund improves, more conservative funding of these liabilities
can be reported.
Administrationllnformation Seruice lnternal Seryice Fund -fhe budget for this fund includes
not only information services, but also the costs of maintenance for centralized printing and
mailing equipment. Certain City-wide studies, such as the cosl allocation study, were included in
this fund in previous years, but such consultant contracts were moved to the Finance Department
within the General Fund budget. Beginning with fiscal year 2015-16, only the costs of lnformation
Technology (largely the contract with Redwood City for lT services), and the maintenance of
printing and mailing equipment and services are accounted for in this fund.
After a prolonged period of service issues, the two copier/printing machines in City Hall (both
upstairs and downstairs), which had been procured with a five-year leasing agreement, were
replaced in October. Management determined that the outright purchase ($39,000) of the new
machines was much more cost-effective for the City. As no further capital purchases are
anticipated by the fund in this fiscal year, a $10,000 increase in the fund's capital equipment
budget is sufficient to cover the costs of the new machines. An equal decrease in the fund's
equipment maintenance budget is proposed to offset this additional appropriation.
Equipment Servrces Fund - This fund is used to account for the costs of operation,
maintenance, and replacement of automotive equipment used by the various departments. The
Fy 201 5-16 budget supplied an increase in contractual services to maintain the Global
Positioning System (GPS) that was installed in the City's fleet in the prior fiscal year. The cost for
the GPS fleet lracking is $34,585 annually. The system is operating as planned: benefits include
the reduction of fuel costs, liability and risk, and increases in efficlency and customer service
quality. Software features allow powerful reporting and include a customizable dashboard
interface to track all vehicles in real time. Software is accessible from any mobile device.
19
201 5-1 6 M id-Ye ar Re port
Unfunded Needs
Since that time, City staff has explored various options/partnerships with private developers to
build one or more parking garages and a City Hall at little or no cost to the City. Options to
partner with developers on construction of a new City Hall were also considered. Separately, the
City has worked with its financial consultant to help determine how to fund the projects (such as
the Community Center) that may require some type of voter approval of a funding mechanism. At
this time, no decisions have been made about any of the potential public-private partnerships or
tax mechanisms.
ln addition to the Hoover School Area Traffic and Safety lmprovements identified in January, the
City Council and staff have identified other capital needs that will compete for General Fund
resources and challenge the organization's capacity to successfully undertake. For example, the
Broadway grade separation project is in the Project Study Report (PSR) phase at this time. The
preliminary project cost is estimated at approximately $240 million. Upon completion of the PSR
phase, staff will explore opportunities to obtain external funding to advance the project into the
design and environmental phase. Staff believes that as the project moves towards the
construction phase, the City will be required to provide a local match, estimated to be in the range
of $15-$20 million, towards the construction costs.
Also, a large number of City buildings, in addition to the facilities previously identified, have
served their original intended design life, and are in need of major improvements. Though the
City regularly invests in building maintenance, major building components are overdue for
replacement. To the extent possible, necessary improvements are included in the five-year CIP
program, but this approach has not proved to be sufficient in averting further unfunded needs.
Staff is in the process of preparing a master plan to identify and prioritize building improvements
of all facilities to undertake projects as funding becomes available.
20
March 16, 2016
ln November 20'13, staff presented the City Council with a list of unfunded needs as well as broad
cost estimates for the various projects. Afler extensive public outreach, staff asked the City
Council to prioritize the poects so that funding plans could be developed. The City Council
ranked a new downtown parking garage as the highest priority, followed by the Community
Center, and City Hall.
Although funds are being set aside in the City's Renewal and Replacement Reserve, the amounts
of funding seem to diminish when compared with the growing set of unfunded needs. ln addition,
the reserve is being funded by annual surpluses and one{ime revenues, and as such will be the
first General Fund resources that will be reduced or eliminated when the economy inevitably
retracts. Staff plans to draft a Renewal and Replacement Reserve Policy for City Council
discussion and direction in the fall. However, these unfunded needs should be kept in mind when
reviewing the General Fund Five-Year Forecast.
20 1 5-1 6 M icl-Ye a r Re port March 16, 2016
The five-year forecast attached to this report as Attachment C was developed using the FY
2015-16 budget, adjusted for the recommended adjustments in this report, as a starting point for
estimating revenues and expenses of future operating budgets.
The five-year forecast was prepared with careful consideration to each revenue and expenditure
category. These analyses roll up to the summary forecast shown in Atlachment C. General
Fund revenues are monitored closely, and projections are based upon a rolling forecast model
that combines actual results with smoothed, multi-year historical data. When appropriate,
compound annual growth rates (CAGR) are utilized to smooth cumulative year-over-year growth,
as though growth has occurred steadily over the specified period of time. Adjustments are also
made for known and/or assumed financial factors such as economic and legislative changes at
the national, state, and local level. Forecast assumptions may also utilize information from third
party experts, published industry indices, and/or data collected from City departments. This
procedure for analysis allows a different CAGR or groMh assumption to be applied for every
account within a revenue or expenditure category. For example, if solid waste franchise fees are
anticipated to grow faster than electric franchise fees, these different growth rates can be part of
the assumptions. However, the casual reader will not be able to determine these forecast
assumptions by simply calculating a growth ratio.
The rest of this report attempts to articulate major deviations from a flat growth assumption within
any category; the assumptions are summarized in the tables below:
F oreca sted Reven u e As s u m Pti on s
Growth Factor Explanatory Comments
Property Tax
ERAF Rebate
5.97% - 20L6-L7
4% thereafter
Actual assessment roll growth per the County
Assessor based on January 1 lien date and
continuing trend of low property turnover.
Growth for 2016-17 is per the county Role
Tracker year-to-date. The housing market
may cool in the next few years due to rising
interest rates, but some Bay Area insulation is
expected due to high demand.
Adjustments made for Educational Revenue
Augmentation Fund (ERAF) rebate,
decreaslng over the next five years due to
growing demands on ERAF funds. The City will
continue to treat as one-time revenue.
21
General Fund Five-Year Financial Forecast
To evaluate the ongoing impact of each of the updated General Fund projections described in the
City's five-year forecast, it is important to consider which adjustments reflect one-lime events, and
which represent a fundamental change in the City's revenue or expenditure structure. One{ime
revenues cannot be relied upon to augment ongoing services, just as non-reoccurring costs will
not drain the General Fund on a continuing basis. Therefore, no sale of property or other General
Fund assets are assumed in the five-year forecast.
Revenue Description
Varies -
expected to decline
2015-16 Mid-Year Repod
Revenue Description Growth Factor Explanatory Comments
Sales Tax
2.9% - 2076-17
3.A% - 2017 -\8
3% thereafter
Based upon recent Q3 2015 sales tax data.
End of the triple-flip in FY 2015-16 caused a
one-time increase, decreasing the FY16-17
forecast when compared to current year.
lndications of a shift of consumer spending on
services (rather than taxable goods) and
statewide concerns regarding diminishing
sales tax base could limit growth.
Transient Occupancy Tax -2.7Yo - 3.OYo
Based upon assumption that average daily
room rates will be constrained by price
elasticity. lncludes an assumption for some
diversion of revenue as a result of new SFo
hotel in fiscal year FY2018-19.
Other Taxes - Franchise Tax L.O%-3.0%
Based upon expected gross revenue changes
for PG&E, garbage, and cable w.
Other Taxes - Business Licenses r.o%-3%
Based upon expected growth in long-term
parking as a result of record highs in
passenger tralfic at SFO. Minimal growth is
expected in general business license revenue
because it is based upon volume of
businesses rather than gross receipts.
other Taxes - state HoPTR Flat Limited to growth in the number of
homeowner occupied parcels.
Other Taxes - Transfer Tax s400k - 2015-17
2% thereafter
Based upon historical patterns and
consistently low inventories of properties for
sale.
Licenses & Permits
Fines, Forfeitures & Penalties 0.5% - Licenses
2Y6 - Fines
Based primarily on no/slight annual
adjustments to fees, and a very small increase
in volume.
Not included here is an assumption for added
parking lots or garages over the next five
ye ars due to unknown implementation date.
Charges lor Services
to% - 20L6-r7
3% thereafter
completion of cost Allocation and User Fee
Study, increased fee revenues anticipated in
FY 2Of6-L7. Thereafter, growth based
primarily on consumer price index
adjustments to fees. Not included here is an
assumption for increased programming at
new Community Center due to unknown
lmplementation date.
Use of Money & Property 2.s%
The assumption is based upon current long-
term lease information, which permits
adjustments based upon consumer price
indices, as well as a scheduled increase to the
monthly rent for a T-Moblle tower in
WashinBton Park.
)a
March 16, 2016
2O1 5-1 6 M itt-Ye at Re po rt
Forecasted Ex penditure Assumption s
March 16, 2016
Revenue Description Growth Factor Explanatory Comments
Other Revenue No growth No growth projected due to one-time
revenue.
The forecast assumes that mandated cost
recoveries from past years will continue to
decrease as the State makes progress in
paying these liabilities. Growth assumed in
Measure M revenues from vehicle
registrations volume.
lnterest lncome Varies - 1.0% -
LO.O%
Based upon expected cash balances and
increases in Federal Funds rate per Federal
Reserve policy analysis (December 2015).
Expenditure Description Explanatory Comments
lncludes an annual groMh rate of 8% for January
l changes in health care rates. Expected PERS
contribution rate increases (10.6% average
annually for Safety and 5.4% for Misc. employees)
coupled with forecast increases in salaries &
wages.
Also included are employee contributions to
health care and PERS in accordance with current
MOUs.
Operating Costs
Based upon cost of living adjustments for most
non-personnel costs and expected changes in
utility rates. A 3% compounded annual growth
rate is assumed for most operating costs. A 6%
escalation factor for service from Central County
Fire is also assumed.
Operating Costs (cont.)
Operating costs include a payroll surcharge
assessed on full-time employees to fund
previously incurred costs associated with retiree
medical benefits for former employees
(implemented in fiscal year 201.4-15).
23
State Subventions o.5/o
Salaries & Wages
lncludes effect of current collective bargaining
aBreements, including recently approved
agreements with labor groups and increases
wages for part-time employees effective January
1. (Note: Budget not adjusted for these increases
in 2015-16) Assumes an annual growth in salaries
of 1-3% for out years, as well as normal merit step
increases.
Benefits
201 5-1 6 Mid-Year Report March 16, 2016
ln the five-year forecast, property tax revenues are assumed to grow at a rate higher than
inflation, but not as quickly as in recent years. Although growth in Burlingame's assessed value
in fiscal year 201+15 was 6.83 percent, and cunent year property tax revenue was based on a
roll 6.8 percent higher, growth in the roll for fiscal yeat 2016-17 indicates that an increase of
approximately 6 percent in property taxes can be anticipated. This rate includes an inflationary
factor of slightly over 1 percent as reported by the State Board of Equalization for December
2015. The inflationary factor is capped at 2 percenl annual groMh. The rest of the growth is from
re-assessments, usually the result of properties changing ownership. As the economy continues
to strengthen, assessed values should also increase steadily, and the inflationary factor will most
likely be back to 2 percent in future years. As a result, the assumed growth factor is 4.0% for
secured property taxes in fiscal years 2017-18 through 2020-2'1. However, property tax revenues
as a whole exhibit a much slower rate of growth in the five-year forecast due to the cessation of
ERAF refunds. Long a part of the City's property tax revenue stream, the refunding of amounts
remaining in the County's Educational Revenue Augmentation Fund (ERAF) to the subsidizing
local governments is projected to come to an end. Note that the potential revenue impact of other
future (specific) development, including any major development currently in initial stages - but
without an approved fiscal impact report - is NOT included in the long-term forecast.
The City's Transient Occupancy Tax (TOT) revenue has grown in recent years to be the City's
largest General Fund revenue source. A surge in both occupancy and hotel room rates has
resulted in a 38 percent increase in the City's TOT revenues in the past three years. The rate
was last increased five years ago from 10 to 12 percent (effective January I, 2010), and that rate
is assumed to remain unchanged in future years.
Yet the revenues generated from TOT are very volatile. As noted in the risk-based analysis of
the City's General Fund reserve needs, receipts are directly tied to changes in average daily
room rates (ADR) of the City's 3,742 hotel rooms. As occupancy rates are already very high, and
room rates show some signs of leveling off, it is unreasonable to assume these revenues will
continue to grow as they have in the past few years. A groMh rate of 3.0 percent is applied to the
City's base TOT revenue for most years of the forecast. An adjustment is included in fiscal year
2018-19 to reflect the completion of a 400-room hotel at SFO. Although the timing and impact of
Expenditure Description Explanatory Comments
lnternal Services Based upon a 3% blended escalation factor.
Capital Outlay
lncludes a base of S20OK based upon historical
use and 3% groMh rate.
Transfers ln (Out)
Assumes reimbursements for debt service,
increasing General Fund investments in capital
Projects (with a floor of 2 of the L2YofOT 6x
revenue), and support of city shuttle programs.
Debt Service
Actual debt service for all current outstanding
bond issues, including the payoff of the Master
Equipment Lease Purchase by June 30, 2018.
Assumes no refinancing of current debt and no
new general obligation debt issuances.
24
201 5-1 6 Mid-Yeat Report March 16, 2016
the new hotel on area ADRS and occupancy rates is far from certain, staff has prudently
calculated that there will be a negative impact on TOT revenues.
The City's sales tax base has continued to grow with the economic recovery of past years, and
the forecast for the upcoming fiscal year calls for a growth rale of 3.5 percent. However, the
State's sales tax "Triple Flip" created a one-time bump-up of this revenue source for Burlingame
in fiscal year 2015- 16 of nearly $1 .2 million, which masks this positive growth forecast. The
forecast calls for continued growth in FY 2017-18. But due to consumer trends that indicate a
decrease in the purchase of goods and materials in favor of non-taxable transactions (i.e.,
services), a more conservative groMh rate of 3.0 percent is appropriate for the fiscal years
beyond 2017-18.
lncome from the City's investments has increased very modestly with the growing economy.
Because the yields on short-term, risk averse investments have been historically low for several
years, changes will be moderate in the next couple of years. Any increase to a very low yield will
result in significant growth factors. For example, if a 1 percent investment yield grows moderately
to 1.5 percent in the fifth year of the forecast, this represents a 50 percent growth over the period.
Note that this revenue source has been greatly diminished in recent years and is no longer a
significant contribution to General Fund revenues. However, as interest rates rise, staff will
continue to optimize the portfolio's performance.
The limited revenues received in the categories of Licenses and Fines are assumed to grow only
modestly for purposes of the five-year forecast. Charges for Services are forecast to grow at a
rate of 3 percent annually after a significant increase in FY 2016-17. lncreases in fees are
anticipated due to the completion of the City's Cost Allocation and User Fee studies, which will
inform fees for the coming fiscal year. These increases will be explained in detail with the
presentation of the Master Fee Schedule in April.
Salaries and wages have been broadly p@ected at levels that assume all existing labor
agreements are adhered to until expiration. The City's most recent labor contracts, while
reflecting concem over increasing employee benefit costs, also acknowledge the improved
economy and the higher cost of living in the Bay Area. The contracts provide a balance in the
four major cost areas of employee compensation: salary, health premium contributions, pension
obligations and retiree medical, though the cost to the City continues to grow in all these areas.
The long{erm forecast reflects groMh in salaries and wages at a level of 1-3 percent once these
contracts expire.
Rates charged by the Califomia Public Employees Retirement System (CaIPERS) have risen in
the past few years due to the impact on investment losses in fiscal year 2008-09. ln addition,
although steps toward pension reform were implemented as of January 1,2013, CaIPERS has
also implemented changes to the actuarial economic assumptions that will further burden
employer rates. Specifically, CaIPERS has implemented an investment program intended to
reduce the risk of investment losses, gradually shifting CaIPERS to a less "volatile" mix of
investments, narrowing up-and-down market swings but also lowering expected earnings. This,
along with new longevity projections and a more aggressive funding of past liabilities, will serve to
push rates higher.
25
March 16, 2016
The rates shown reflect rates provided by CaIPERS (through FY 2016-17); subsequent year rates
are based on CaIPERS estimates for most cunent employees:
Estimated ca IPERs Rates
Fiscal
Year
Misc
Rate
Safety
Rate
2015-16
2076-77
2077 -t8
2018-19
20t9-20
2020-27
2L.77%
22.83%
24.80%
26.6004
28.sO%
28.80%
20.23% +
2L.23% +
2L.20% +
2L.20i6 +
2L.2096 +
21-.20% +
S 77s,s93
5 958,344
5 L,174,s39
5 r,4o2,844
s 1,543,790
S 1,8s7,68s
Note that part of the increase in Safety rates is due to the inclusion of a dollar amount to pay off
the UAL (unfunded accrued liability) of prior years. Since personnel costs are such a large
portion of the General Fund budget, changes in employer contribution rates will have a significant
impact on the fund's five-year p@ection.
Another part of the personnel cost budgets is the pre-funding of retiree medical benefits (OPEB).
Funded on a pay-as-you-go basis until the 2014-15 fiscal year, the cost of these benefits, largely
incurred in prior years, is now being pre-funded through an (external) inevocable trust. These
costs represent a surcharge of approximately 30 percent on regular salaries and benefits. The
normal cosl (cost of the benefit earned by active employees for the cunent fiscal year) is included
in all personnel cost projections, and should decrease over time because retiree medical benefits
offered to new employees (since 2012) are greatly reduced in this area. An actuarial valuation as
of June 30, 2015 is currently being prepared, and will inform the amount of the surcharge needed
to continue funding these benefits for the next two fiscal years.
With respect to non-personnel expenditures, it should be noted that the General Fund transfer out
(expenditure) for the CIP has in past years been based on a set portion of the TOT revenues (2 of
the 12 percentage point TOT rate) - approximately $4.2 million for 2015-16. As such, capital
spending has been able to proceed at a rate higher than other General Fund expenditures. ln the
five-year forecast, the same rate of growth in this transfer is assumed as the growth rate in the
City's TOT revenues. The regular transfer amount was intended to reflect the annual cost of
maintaining the City's current infrastructure in its cunent condition, and has been considered an
essential part of a sustainable budget. However, due to the identification of the City's many
unmet capital project needs, particularly in regards to City's facilities, staff will be recommending
that the transfer amount based on TOT revenue be considered a minimum annual transfer
amount. Staff will recommend the transfer for the 2016-17 fiscal year General Fund budget
instead be increased based on the City's capital needs for the upcoming fiscal year, to the extent
there is staff capacity in the organization to accomplish the identified projects. While annual
funding of $3 million for the Renewal and Replacement Reserve in the Capital Projects Fund is
also assumed in the five-year forecast, no assumptions have been made regarding the use of the
Renewal and Replacement Reserve for capital spending, as these will be subject to the City
Council's priorities.
zo
2015-16 Mid-Year Repod
2015-16 Mid-Year Repoft March 16, 2016
Longer term financial planning is not limited to the General Fund. The City's other operating funds
are also examined for unfunded liabilities and future vulnerabilities, and adjustments are made as
needed. To the extent these funds are not self-sustaining; they can indicate a drag on the City's
General Fund operations. To avoid such a condition, long-term plans are updated frequently, and
any changes in the outlook of these funds are brought to Council's atlention through the budget,
mid-year analysis, and financial reporting processes cunently in place.
FISCAL IMPACT
Authorization of the aftached budget amendment updates the previous allocation of City
resources for the 2015-16 fiscal year, reflecting changes in economic conditions and the City's
current fiscal year{o-date performance. Also attached is a resolution approving the transfer of $5
million from the General Fund to the Capital Project Fund's Renewal and Replacement Reserve.
The City Council may consider revisions to the mid-year adjustment in the attached resolution,
and/or additional amendments to the FY 2015-16 budget. The goal is to provide the most
accurate picture of the 2015-16 fiscal year's standings in preparation for the FY 2016-17 budget
and to assist decision makers in planning for the City's needs in the long{erm.
Exhibits:
. Mid-year Budget Amendments Resolution
o Funding ofthe Renewal and Replacement Reserve Resolution
Although the broad assumptions that underlie the five-year forecast are considered to be
conservatively realistic, any number of risk factors could result in a less positive forecast,
including ineffective monetary policy by the Federal government, a major retrenchment of
consumer spending, increased unemployment, escalating inflation, or an emergency event.
Conversely, improved revenues from the implementation of business development strategies in
progress may provide the headwind - in the form of higher revenues - needed for smoother
budgetary times in the near future. No single strategy is assumed to succeed (and included in
the five-year forecast) until the result is imminent. Staff has endeavored to provide the most
realistic budgetary poections possible using the most recent data available. Analysis of the
General Fund and the City as a whole will continue through the development of the fiscal year
2016-'l'7 budget, and will include revisions to this five-year forecast.
27
2015-16 Mid-Year Repoft March 16, 2016
City of Burlingame
201&16 Mid-year Report
Attachment A - General Fund Revenues
Property tax rolls are established prior to the beginning of the fiscal year. For FY 2015-16,
Burlingame's roll value (land and improvements) increased by 5.97 percent, including an
inflationary factor of 1.015 percent applied to all California property assessments. As shown in
the chart below, the preponderance of the City's property tax revenues (over 70 percent)
comes from secured property taxes, which are established by the tax rolls and diminished only
through refunds on successful appeals to the County Assessor's Office.
ln FY 2014-15, actual property tax revenue receipts were wilhin lz percent of the budget (as
adjusted at mid-year), representing a 7.6 percent increase in property taxes over the prior year.
Revenues from secured property taxes were expected to rise approximately 6.25 percent in FY
2015-16, but since the final assessed roll for Burlingame reflects a 6.80 percent rise over the prior
year, a $100,000 upward adjustment in the Secured Property Taxes budget is indicated. Other
components of property tax revenues were conservatively budgeted. For example, Property Tax
in Lieu of VLF is also allocated based on growth in the County's secured property tax roll, and is
projected to come in $29,000 higher than initially budgeted for 201 5-"16.
ln addition, adjustments in the County's ERAF (Educational Revenue Augmentation Fund)
distributions were expected to negatively impact the City's excess ERAF reimbursement in
comparison to prior years. Excess ERAF reserves are held by the County and distributed when
all other obligations of the funds have been met. The ERAF reimbursement received early in
January consisted of 45 percent of the excess ERAF amount for each of the current and prior
fiscal years, plus the remaining ERAF reserve balances for fiscal year 2013. Due to growing
demands on the ERAF funds, these distributions are declining. The County continues to warn
that, as funding for education grows and other State commitments are satisfied through the ERAF
funds, excess ERAF distributions could decline significantly, and even be eliminated. For fiscal
year 2O15-16, the City's distribution was in facl approximately $100,000 lower than in the prior
year. But these funds were very conservatively budgeted, and a $500,000 mid-year increase is
proposed for this line item.
2013-14
Actuats
2014-15
ActualsDescription
Adopted
Eudget
2015-16
Midyear
Projection
Midyear
Amendment
Current Secured Property Tax
Secured Supplemental Property Taxes
Unsecured Property Tax
Property Tax in Lieu of VLF
ERAF Refund
Unitary Tax
Total
s 10,379,063
351,832
589,129
2,503,852
1,425,203
247,468
5 7r,2L4,778
346,666
618,498
2,668,277
7,564,O72
265 091
s 11,900,000
340,000
620,000
2,a20,o@
960,000
260,000
s 12,000,000 5
472,0@
650,100
2,849,000
1461,300
2840@
100,000
132,000
30,100
29,000
501,3@
24,O@
s 1s,496,s47 516,677,381 5 169(x),(x)0 5 t7,7L6,40O S 815,400
zo
Property Taxes - The San Francisco Bay Area housing sector was a sustaining factor in the
local economy through the difficult period following the "dot com" bust, and fared relatively well
through the declines in home prices from 2008 through 2010. ln the past four years the market
has improved and stabilized. Assessed property values continue to rise, increasing 6.8 percent
in each of the past two fiscal years. The local housing market is very strong, despite a persistent
lack of inventory. And though credit conditions remain tight, the last few years have seen a
renewed interest in commercial real estate development.
2015-16 Mid-Year Repoft March 16, 2016
The uncertain future of ERAF refunds makes this a highly unreliable revenue source, a factor that
has been taken into consideration in the City's long{erm projections. Even though excess ERAF
distributions have contributed significantly to General Fund revenues for quite some time, these
refunds should be considered as "one-time" revenues, used to fund reserves or applied to one-
time expenses.
Supplemental property taxes, collected for the balance of the cunent tax year on increased
assessed valuation when property changes ownership, is coming in well ahead of amounts for
the same period last year. Although these revenues amounted to less than $350,000 in fiscal
year 20'14-15, a $132,000 increase (to $a72,000) is proposed for this line item revenue.
Unsecured property taxes (assessed on business fixtures, business personal property, boats,
aircraft, etc.) are also slightly higher than in the prior fiscal year. As such, a $30,100 increase in
this budget is recommended. ln addition, a higher assessment of utility-owned properties is
reflected in the County Assessor's role, and should result in an additional $10,000 of Unitary Tax
revenue for the City in the current fiscal year.
Sales and Use Taxes - The line graph below shows the City's sales tax revenues over the past
eight years, as well as a projection for the cunent fiscal year. The recession was obviously
marked by a severe decline in consumer spending and associated taxable transactions.
Burlingame experienced a flattening of sales tax revenues in the last quarter of fiscal year 2007 -
08, as both consumers and businesses retrenched in response to the economy. As can be seen
in the chart below, sales tax revenues for the City declined 12.7 perclnt in FY 2008-09, with a
further 23.68 percent decrease in FY 2009-10. With the economy recovering, sales tax revenues
surged upward in FY 2010-1 1, and continued to grow at an impressive pace. ln fact, these
revenues surpassed pre-recessionary levels in FY 2013-14, with nearly $10.2 million in receipts.
The results for the fiscal year ended June 30, 2015 reflected an 8.9 percent increase from the
prior year.
Because of the time lag in the reporting and submission of sales taxes to the BOE, only one
quarter's data is available from which to project the City's FY 2015-'16 revenues from this source.
Although results for the first half of the cunent fiscal year indicate an annualized groMh in taxable
transactions in Burlingame of approximately 12 percent, the projection for FY 2015-'16 sales tax
revenues is deceivingly high. That is because December 31, 2015 marked the end of a series of
revenue swapping procedures by the State (referred to as the "triple flip") which began in 2004 to
secure debt service payments for the State's Emnomic Recovery Bonds. The triple flip unwind
process (the closeout period is in May/June 2016) will result in receipt of "payback" amounts held
by the state from previous quarters, supplying a one-time bump in sales tax revenues of nearly $1
million.
FiscalYear 2Oo8-15 sal es & use Tax Revenue
De*ription FY2oO8 FY2009
(in millions!
FY2010 Fr2011 FY2012 Fr2013 FY20l4 FY2015 FY2016
Sales & Use Tax S
5alesTax Compensation Fund S
Public safety Fund-Sales Tax 5
6.9s 5
2.s1 S
0.12 S
5.85
2.19
0.11
s s.00 s
S 1.27 S
S 0.11 S
6.1s S
1.89 s
0.11 S
G.33 S
2.16 S
0.12 s
6.90 S
2.17 S
0.13 s
7.48 5
2.s7 5
0.14 5
8.36 S
2.s9 S
o.r.s S
11.00
2.LO
0.14
Grand Total S 9.sE s 8.36 s 6.38 s 8.1s s 8.62 s 9.20510.20s11.10s13.24
Year-over-year chante 2.40% -12-70% -23,61t% 27.74% 5.71% 6,73% fi.A% 8.87% 19.31%
)o
The chart below shows total sales tax receipts from the Bradley Burns (local 1 %) allocations from
the State Board of Equalization (SBOE), the amounts received from the State's Sales and Use
Tax Compensation (SUTC) Fund, and the additional Public Safety Sales Tax. ln future years, the
local sales tax allocations will be received in whole, and the State's SUTC Fund will be retired.
2015-16 Mid-Year Repotl March 16, 2016
Historical Sales & Use Tax Revenue
S12
Slo
s8
11.00
836
.48
=)o
-FSel€s & UseTar
+ Sales Tax
Compensadon Fund
Pdlic s.fety Fun+
Sales Iaxs4
.39 2.10$2
7
to
Again, a review of 3'd quarter data for 2015 (remitted to the SBOE in October - December 201 5),
shows increased sales tax revenues continue, with most major industry groups reporting a
positive change compared to the same quarter of 2014. ln total, taxable transactions were up
14.5 percent from the third quarter of the previous year.
!9!le!!PstdleJl11
I
,//-,/,//II 7 I I Tlzltf ?,72,1.1
{n &ls.r€s5
dld
Horels
GarE al
Goods
&rd.tg
al(l
CsEtucto.r Drugs
The Business and lndustry group shows the largest dollar increase due to one large transaction
in the area of energy/utilities. But the City's largest sector - Autos and Transportation -
continued to grow at a steady rate, as low interest rates, more fuel-efficient drive trains and
declining fuel prices continue to push the auto industry foruard. The strength of Burlingame's
Auto Row boosted autos and transportation results that were 5.8 percent higher than in the
30
0.14
;l!A FO9 Fl'lo FYll Fl|l2 ml Flrla tY15 FYl6 Fiol.ctbn
3t 2(Ix
$.ux
grx
toqx
tl(II(
ettx
!0(
2015-16 Mid-Year Repon March 16, 2016
comparable quarter from the prior year. Although the demand for automobiles was anticipated to
level off somewhat in FY 2015-16, the sector as a whole should remain fairly strong for the
remainder of this fiscal year.
Srer&r.|tllriedllrtE-0rile
a,.o. and rrn,..ponrrb. s1 2o0K
Couot 159
Bual 33 And hdrratry
Corr{ ml
Raaardra Aad Hoa.lr
Cotr.t 179
3.r.1Coutr, Pcc.3
s800K
5600K
SlOOK
$200K
50K
G.nd.l Co unir Goods
Couni 825
Coutn 6l
FlrI Arld 3.rYb. ffion.
Euildane And Coisructioir
?
Food And Orug.
Count 5l
4Q 10
't3
20
13
30
13
40
13
1Q
14
20
t4
30
14
40
14
10
15
20
15
30
15
It is interesting to note that the City's share of the countywide use tax pool jumped nearly 12
percent compared to same quarter in 2014. Use tax is the responsibility of the buyer rather than
the seller and does not involve a California 'point of sale". Therefore, the tax is coded to the
county of use and then distributed to each jurisdiction in the county on a pro rata share of taxable
sales. While these receipts represent only 1 0-12 percent of the total sales tax revenues (and are
categorized by major industry group along with point-of-sale receipts), the increase reflects a
continued acceleration of online shopping for merchandise shipped from out of state. This trend,
along with a shift in consumer spending habits to non-taxable goods and services, puts pressure
on brick-and-mortar retailers and the underlying sales tax base for local governments.
The City's FY 2015-16 adopted budget for sales taxes corresponds to a 5.8 percent growth over
the prior mid-year anticipated sales tax revenues. However, due to revenues higher than
anticipated in the FY 2014-15 budget, continued strength in taxable sales, and the unwinding of
the State's triple flap mechanism, an upward adjustment of $1 .66 million (an additional 12.5
percent) is proposed for lhe cunent fiscal year, for a total projection of $13.2 million in sales tax
revenue.
Transient Occupancy Taxes (TOT) - TOT revenues constitute Burlingame's largest General
Fund revenue, and are usually a good indicator of cunent economic activity. TOT revenues are
reported and paid to the City each month (for the prior month), so results as of January 31,2016
reflect the first six months of the fiscal year. The budget for FY 2015-16 was established based
on TOT collections through March 2015, when year-end results were projected to be
31
sr.000K
2015-16 Mid-Year Report March 16, 2016
approximately $22.5 million, an increase of 5.4 percent from the prior fiscal year. Noting the
exceptional low vacancy rates, a continued rise in average daily room rates (ADR), and perhaps
additional revenues from the Super Bowl in February 2016, the original fiscal year 2015-16
budget projected that TOT revenue would grow an additional 5 percent, to a projected $23.1
million.
HistoricalTransient Occupancy Tax Revenue by Quarter
--{.f.-
40
35
:to
E
.9
=20
-
2014-15
-
2013-14
-
20u-13
-
2011-12
-
2010-11
-
2fl)9-10
v5,3
5.7
4.1 4,2
.8 5.0 7
___-/
3.E -----6
2.7
2.8 2.6
2.5 2.t
Q3 q4
ln actuality, the City ended the 2014-15 fiscal year with nearly 23.7 million in TOT revenues
Occupancy rates as reported by the City's hotels have remained fairly robust. However, TOT
revenues continue to be highly vulnerable to the cyclical nature of tourism and changes in the
economy. The City continues to project TOT revenues conservatively, as hotel room pricing has
far outpaced local pricing indices as well as inflation; as such, it is expected that in the near term,
price elasticity will constrain groMh.
Locally, Burlingame hotels reported an average occupancy ,ate of 84.7 percent between July and
December 2015 and an ADR of approximately $162, which contributed to a 12.6 percent increase
in TOT revenue. Current receipts outpaced prior year receipts during the first six months of the
fiscal year, and the City believes that modest growth will be felt in the remainder of the year
Anticipating a modest rate of continued growth, a new projection of $25.2 million is proposed at
mid-year for TOT revenues, representing a 6.3 percent growth rate in the 201 5-16 fiscal year.
Other Taxes - A number of other sources provide tax revenues to the City's General Fund.
Although they are consolidated for reporting purposes, prior year actual amounts and the
current year activity for each source has been reviewed for the most accurate projection of
2O1 4-15 year-end results.
15
10
Q2Q1
A significant decrease in the volume and value of real estate sales during the recession is
reflected in the City's Propefi Transfer fax revenue, as shown in the chart below. The City
receives this revenue the month following a real property transaction, splitting the 0.11 percent
tax evenly wilh the County. Although improved home values have pushed these receipts higher
with the recovering economy, property turnover in lhe area continues to be relatively low.
'1)
8.2
7.6
6.3
5,7
4.O
3.3
5
Fiscal Year 2008-16 Real Property Transfer Tax Revenue
55(I),(m
54s0,06
346,00
93sopo
530,oo
92so,flx)
92rr,,(xl,
s15O,(xD
S1(I),{m
5s0,o0
so
s472,@O
s435,853
s379,266
s347,855
$280.059
\2
,408
2qB{B 2rx}r-10 201G11 2011,12 m12-13 zJ73-14 2014-15 2015-15
(Proiect€d)
2015-16 Mid-Year Repoft March 16, 2016
The FY 201G15 amount received for property transfer taxes was $436,852. Current year (July
2015 through January 2016) tax receipts are coming in about 6.1 percent higher than last year's
receipts during the same time period. So, depending on real estate sales in the remainder of this
fiscal year, this revenue is expected lo come in higher than the $360,000 budget. Month to
month variation in real estate sales (reflected in the chart below) makes this revenue difficult to
project. However, staff conservatively proposes a $112,000 increase in the FY 20'15-16 budget
for the City's property transfer tax revenues.
Year-to-date Busrness License 7ax revenues are coming in at rate 1.4 percent higher than last
year. This includes the special business license tax assessed on airport parking enterprises. To
reach the budget of $1 million for the current fiscal year would represent a 3.4 percent increase
over the 2014-15 fiscal year results for business license revenues. When the projection for this
revenue source was developed, staff expected to be able to intensify compliance efforts to
maintain the higher volume expected in an improving economy. For the past couple of years,
staffing changes and attention to other priorities within Finance have made this projection difficult
to achieve, and a $27,000 decrease in the budget is proposed for this revenue source.
The largest category of Burlingame's Franchise Fees is derived from the regional garbage
hauler (8 percent of revenues), and is collected and remitted monthly. Because there have
Gty ot gurllngame
Real Prcperty Transfer Tax Revcnue Activlty
liuly 2014 - D.(!nb.r 2019)
.+4 r+n a..a x+s br3 r+s .|a c a
JJ
March 16, 2016
been no changes in solid waste rates since January 1 , 2012, there should be little change in the
franchise fees derived from this activity, and no mid-year adjustment is proposed for fiscal year
2015-16. The reason for the slight decline in garbage franchise fees in recent years is due to a
change in the way the fee is charged: instead of a percentage of the total amount billed for
solid waste services, the City has authorized the franchise fee be applied to billings nef of
agency fees - fees charged to recoup the City's cost of certain solid waste activities.
Franchise fees for the provision of gas and electric utilities were slightly over-estimated in the
prior fiscal year. Although these revenues are not received until April, there is no indication that
the cunent year's revenues will deviate significantly, and the current year adopted budgets for
these fees appear to be on target. However, a $5,000 upward adjustment is proposed for video
service franchise fees, as these receipts appear to be coming in at a higher rate than last year.
Cable franchise fee revenues are also a bit ahead of proiections, and can be adjusted upward
by $14,000.
FY2015-16
Description
2013-14
Actuals
201+15
Actuals
2015-15
Adopted Budget
Midyear
Proiection
Gas
Electric
Garbage
Cable TV & wave Astound
AT&T video Service
Total
s 10s,382 s
213,447
711,918
444,500
1M,630
109,000 s
220,000
710,000
444,W
100,000
109,000 5
220,@O
710,000
458,000
105,000
14,000
5,000
s 1,375,52L s r,579,976 s s83,000 s 1,602,000 s 19,000
201 5- 1 6 M id-Ye ar Re port
Licenses and Permits - General Fund revenues in this category, which consists largely of
alarm permit fees and taxicab licenses, decreased neatly 25 percent ($28,000) in FY 20'14-15
compared to the previous year, the anticipated result of a decrease in the charge for alarm
permit fees effective July 1, 2014. With a budget of $87,000, these receipts account for a very
small part of total General Fund revenues.
Fines, Forfeitures and Penalties - This category consists largely of revenue from parking
citations and vehicle code violation fines. Parking citation revenue in FY 2014-',l5 recovered
from the prior fiscal year amounts due to the completion of the Burlingame Avenue Streetscape
project early in the fiscal year. (Steps were taken lo make parking available and as easy as
possible to access, with less emphasis on compliance, during the construction of the
streetscape improvements.) However, current receipts are lagging that of the prior year due
largely to a turnover in staffing. Although staffing issues are being resolved and the volume of
parking citations issued will increase for the remainder of the fiscal year, the revenues from
these citations will trail these issuances by at least a couple months. Revenues from this
source are expected to be close to that of the prior fiscal year, and staff recommends a
$129,000 reduction in the budget for this revenue source for FY 2015-16.
Although no significant change in citation revenues is anticipated in future years, the cost of
citation processing and adjudication should decrease as a result of the competitive bid process
completed last year and effective July 1, 2015.
Use of Money and Property - This revenue category includes lease payments received on
various City properties. Budgeted revenue for the current fiscal year is proposed to be increased
by $14,500 to reflect cunent year receipts and collectability, as well as amounts that are based on
concessions and percentage rent.
Midyear
Amendment
172,775 5
210,985
724,634
4p;O,529
86,598
201 5-1 6 Mid-Year Repora March 16, 2016
lnvestment lncome - Yields on municipal portfolios dropped steadily following the 2008
market downturn. Over recent years, the Federal Reserve has implemented monetary policies
to keep credit affordable and inflation in check to help the economy recover from the recent
recession. Similar lo other cities, Burlingame invests in only the safest of securities (the
highest priority of the City's investment policy is preservation of capital), and yields have
continued to hover at historic lows for such investments.
The City has contracts with PFM Asset Management, LLC. for outside investment advisory
services. PFM assists in the annual review of the City's ongoing cash flows and investment
goals, and recommends any appropriate revisions in the investment policy. The managed
portfolio's benchmark is the Bank of America Merrill Lynch 1-5 Year U.S. Treasury lndex, with a
duration of 2.64 years. The market value of the portfolio as of December 31,2015 was $117.7
million, consisting of a $72 million managed pool of top-rated securities, $44.1 million in the
State Local Agency lnvestment Fund (LAIF) and $1.6 million in the County pool. The City's
aggregate investments (including the very liquid State and County investment pools) averaged
a yield to maturity of 0.92 percent.
lnterest earnings for all of the City's funds in FY 2014-15 were approximately $0.8 million,
below the $1 mitlion combined budgets for the year. These results, and the impact of the year-
end "markto-market" adjustment, were unknown with the development of the current year
pro.jection. Yields had appeared to stabilize at historically low rates, making, year-end "mark-to-
market" adiustments less significant. However, given the Federal Reserve's intention of easing
its monetary policy very gradually, there was reason to expect short{erm investment rates lo rise
modestly in FY 2014-15. The combined effect of an over-estimated budget in the prior year,
along with the anticipation of higher interest rates which did not materialize (the Feds only
recently announced an increase in the federal funds target rate), was interest revenue
projections that were slightly higher than currently foreseen.
However, the aggregate yield to maturity on the City's investments of 0.92 percent compares
favorabty with the 0.81 percent reported in last year's mid-year analysis. The Local Agency
lnvestment Fund (LAIF), which holds the majority of the City's idle cash, is yielding 0.37
percent, up from 0.26 percent one year ago. Revenues from the City's investments are
therefore anticipated to be higher than in the prior fiscal year in total. Actual income earnings
are allocated out to other City funds based on average cash balance throughout the fiscal year.
As cash balances vary from year to year within the different funds, interest earnings by fund are
difficult to project. Of the total interest earnings now projected for the 2015-16 fiscal year,
$323,000 is projected to be General Fund interest revenue. Staff has proposed adjustments to
the interest revenue budgets in all funds that will be credited with any material interest earnings in
FY 2015-16. These mid-year adjustments will provide a more accurate projection of interest
earnings to the various funds for future budgets.
State Subventions (lntergovernmental revenues) - Through various pieces of legislation and
propositions, the State of California has placed a requirement to reimburse local agencies for
costs born when the State mandates a new program or higher level of service to be provided by
those local agencies. This reimbursement process is known as mandated cost claiming. Over
the years, many of these state mandates have been suspended to save the state money, and
receipts for prior claims were so erratic that they were no longer included in the City's budget.
Yet, based on the continued health of the State's economy, staff conservatively estimated
$25,000 of state reimbursements of prior year mandates in the FY 2015-16 Budget.
Then in May, the Governor issued his 2015-16 May Revise, noting that state revenues had
exceeded the 2014 Budget Act's revenue estimates. This pulled the pre-2004 mandate
35
2015-16 Mid-Yeat Repoi March 16, 2016
It is unknown whether the Governor's Budget for FY 2016-17 will include additional funding for
mandatory cost claims. At any rate, the timing and allocation of these funds to the state-wide
agencies for various mandates and accrued claims will not be determinable in advance.
Therefore, the budget should be decreased $15,000 to reflect only year{o{ate receipts.
Year{o-date receipts of State Motor Vehicle License Fees (VLF) total $12,000. Following the
2011 State Budget Act, which stripped most remaining VLF allocations from cities, revenues from
this source are not significant and always uncertain. Thus, the $12,000 represents an increase to
the previous zero budget. Also in this same category of revenues, the POST (Peace Officer
Standards and Training) reimbursement budget should be decreased $15,000, to reflect a
reduced participation of the City's police officers in POST programs than originally anticipated.
Charges for Services - General Fund revenues in this category were up 13.6 percent in Fy
2014-15 compared to the previous year due largely to a continued interest in the City's
recreational programs and development services. As seen in the chart below, most
departments generate some amount of receipts in this revenue category. With a budget of over
4.4 million, these receipts account for approximately 7.2 percent of Burlingame's total General
Fund revenues.
Receipts from recreational services were 8.1 percent over the adopted budget in fiscal year 2014-'15, and 4.6 percent higher than projected at mid-year. Although some of this growth was
anticipated in the current year budget, 2015-16 fiscal year{o-date receipts indicate further
demand for recreational offerings. The latest projection for revenues from recreation fees is
$168,200 higher than the adopted budget. This is accompanied by a slight increase in program
costs. Park fees are projected to be $23,000 higher than originally budgeted, largely due to an
increase in fees generated from groups that use the fields. These fees were increased last year,
and the impact on parks special services revenue was difficult to project.
Department
FY14-15
Actual
FY15-16
Current
Budget
FY15-16
Midyear
Proiection
Parks
Recreation
Planning
Public Works
Police
Library
Other
Total, Ilepartmenlal Fees 5 3,942,937 S 4,4A
132,260
2,206,209
546,978
383,054
86,648
580,243
7,545
758,475
2,599,854
677,287
426,41O
60,287
613,879
5,425
141,500
2,520,OOO
551,500
448,500
67,500
670,000
4,500
164,5m
2,688,2@
631,500
383,000
55,500
617,000
4,500
23,000
168,200
80,000
(6s,s00)
(12,000)
(s3,000)
1,618 s 4,/rO3,sO0 S 4,s44,20O $74o,7@ 3.2%
36
repayment "trigger mechanism", bringing additional funds ($765 million in total) to counties, cities
and special districts, and fulfilling the state's obligation for pre-2004 mandates in their entirety.
Payments for both the City's mandated cost claims and interest were accrued to the 2014-15
fiscal year. The total of this state revenue was over $313,000 for fiscal yeat 201+15.
FYl3-14
Actual
FY15-15 Year-End
Midyear Up (Down)
Amendment %
76.3%
6.7%
L4.5%
-74.6%
-77.8%
-7.9%
o.e/.
Revenues from Plan Checks and Permits also experienced a healthy increase in the prior fiscal
year. These activities continue to grow in volume, and are anticipated to slightly outpace the prior
year. Much of the $80,000 increase in the 2015-16 fiscal year projection reflects the prior year
growth, although revenues from zoning/sign plan checking and use permit fees will be slightly
lower. Public Works fees for services are experiencing a slightly slower pace than in the previous
fiscal year; these fees are projected to be $65,500 lower than the proposed budget for the current
fiscal year.
False alarm charges for Police Services are down largely due to last year's procedural change
in the issuance of alarm permits. Property owners are given the opportunity of obtaining an
annual alarm permit, which allows for two false alarms prior to incurring these charges for
police response.
Although Library fees are coming in at a faster pace than last year, they fell short of budget in
fiscal year 2014-15, and current year receipts indicate the need for a $35,000 downward
adjustment in this revenue line item. ln addition, remuneration for the provision of library seryices
to the Town of Hillsborough, calculated after the year-end and based on average per-capita
costs, is less than originally estimated by $18,000. This downward adjustment is also reflected in
the attached FY 201 5-16 mid-year budget amendment.
Other Revenues - The City receives other miscellaneous revenues from time to time. Current
year receipts indicate that these miscellaneous revenues (unclaimed property from the State,
rebates, miscellaneous refunds of prior year expenses, etc.) will exceed the adopted budget of
$30,000 by an estimated $16,500.
Last year the City received the $1 million payment required per the Development Agreement for
the Burlingame Point project. The agreement identified certain impacts of the development in
regards to traffic in the surrounding region; the payment is to mitigate these impacts by funding
of the Broadway lnterchange project. The city's share of the Broadway lnterchange project (g5
million) has been fully appropriated in the city's capital Project Fund; construction on the
project has begun. Therefore, the payment on the Burlingame point poect represenled one-
time revenue to the City's General Fund. No such one-time development fees are anticipated
with any certainty in the remaining months of this fiscal year.
J/
201 5-16 Mid-Year Report March 16, 2016
201 5-16 Mid-Year Report March 16, 2016
City of Burlingame
201 5-1 6 Mid-year Report
Attachment B - General Fund Expenditures
The following table shows the FY 2015-16 mid-year assessment of departmental (operating)
General Fund expenditures:
CITY OF BURLINGAME, CA
SUMMARY OF GENERAL FUND EXPENDITURES
Description
FY20l3-14
Aatual
FY2014-19
Actual
fYl5-16
Currenl
Eudget
FY15-16
Midyear
Proiection
FY15-15
Mldyear
Amendma
Year-End
Up (Downl %
General Govt (Ad,nin Svcs)
Public Safety
Centrdl County Fire (Burlin8ame)
Police & Dispatch
Publk Worls
Community Dev€lopment - Plannin3
Leisure & Cultur.l Servkes
Aquatic Center
Library
Parks & Recreation
Total Expendit!.€.
5 5,870,151 5 4,121,895 S 5,]7a,752 S5,112,7s2 g (66,000)-1.3%
9,553,912
LO,221,593
3,339,585
L,od.l,240
LO,470,376
12303,118
4,769,873
L,244,L99
L!,L45,345
13,425,563
4,9t4,735
r,563,474
11,145,345
13,790,663
4,914,735
L,563,474
0 o.o%
2.1%
o.ov"
0.0%
365 ,000
355,974
3,920,511
5,836,196
,O0,831
4,392,4fi
6,702,334
424,0@
4,462,247
7,920,5L6
424,m
4,462,217
7,972,5L6
0
0
0
0
0.0%
o.w"
0.7%52,000
I4o,1 39,162 S il4,'t0to84 5 49,4!4,722 S 49,7as,722 $ 3s1,@o 0.7%
Although many of the proposed mid-year budget amendments are off-set within each department
or division, they are described in detail below to illustrate changes in operations lhat were not
anticipated at the time the FY 2015-16 budget was adopted.
CIWOF BURLINGAME, CA
SUMMARY OF GENERAL FUND EXPENDITURES
BY Gener.l Fsnd Cateqorl6
Salarles & Wates
Benefits
Operatint Cost
lntemalService5
CepitalOutlay
TotalExpenditures
FY2013-14
Actuals
FY2014-15
Aatuals
FY15-15
Current
&rdset
FYl5-16
Midyear
Proj€ctk'Ir
FY15-15
Midyee.
Amendmalrt
Year{nd
Up (Oownl X
5 L3,724,446
8,414,673
L5,227,066
2,651,231
57,747
513,951,37s
8,396,197
18,102,091
3,861,235
,L6
5 16,137,377
9.238,940
20,530.453
3,299,720
728,232
51s,966,3i7
9,603,940
20,795,453
3,299,720
120,232
(Su1,om)
365,000
165,000
0
(8,000)
-1.!%
4.0%
0.8%
o.o%
4.2%
940,139,163 549,424,722 549,78s,r22 S3s 1,000 0.7%
General Fund Personnel Costs
The challenge of any public sector agency is to provide competitive salary and benefit packages
in order to recruit and retain quality talent, while keeping the cost of providing these packages ata reasonable and sustainable level. Negotiated or imposed contracts in years since the
recession have resulted in significant savings and have assisted in achieving structural benefit
changes that will help control future employee benefit costs. For example, Burlingame
38
201 5-1 6 Micl-Year Re port March 16, 2016
employees are now paying a portion of the employer's retirement rate in addition to the
employees' rate, as well as a larger portion of their health care premiums. Retiree medical
benefits have been significantly reduced for new hires, and provisions for the payout of sick leave
hours have been eliminated. Although these savings are evident in recent year budgets, many
of the savings will not be realized in full for many years. ln the current more favorable economic
environment, compensation increases are anticipated to keep up with cost of living indexes.
Because personnel budgets are based on full occupancy (no vacancies) of permanent positions,
budgetary savings will occur in most every department. However, personnel cost savings due to
vacancies are difficult to estimate and vary by departments and programs, so no budget
adjustments have been made on a City-wide basis.
It should also be noted that most health plan rates were increased effective January 1, 2016; the
increases ranged from 3.+18.75 percent, depending on the plan, with an average of 10.0 percent
across all plans. Although no adjustment is being made to the departmental budgets to cover the
impact of these increases for the last half of the current fiscal year, the changes will put added
pressure on personnel costs in the upcoming FY2016-17 budget.
Personnel costs (and total operating expenditures) for the General Fund increased
significantly in FY 2O14-15 due to the inclusion of contributions to the irrevocable trust fund
established in October 20'13 tor the purpose of funding the City's retiree medical benefit
obligations. The full costs of these past and current obligations are now reflected in the
departmental budgets. As best practices would dictate, the City is committed to contributing
the annual required contribution to the trust fund in both good and bad financial times, using
conservative, realistic assumptions that are adjusted based on experience, and making
changes to benefit and contribution rates as needed.
Administrative Services - The budget for this group of departments supplies the resources that
support services often referred to as "general government" activities. Although each department
is bound by a separate budget, recommended adjustments are fairly minor, and they are
combined in this report to give an overall context to the administrative costs of the City. Recall
that much of the reduction in the Administrative Services budget for fiscal year 2014-15 was due
to the elimination of "Other Employee Benefits" (over $2.5 million in fiscal year 2013-'14) from this
grouping. The category used to house the "pay-as-you-go" portion of retiree medical benefits.
Beginning in fiscal year 2014-15, these costs are borne by all departments based on a payroll
allocation.
?o
An appropriation for part{ime salaries was included in the FY 20"15-16 budget for the City
Attorney's Office to provide part{ime unbenefited professional assistance with an emphasis on
special projects and anticipated development-related activity. Although it is expected that the
position could be filled in the near future, the position is unfilled at midyear, and salary savings of
$25,000 are anticipated. Additional salary savings of $60,000 are available due to the vacancy of
the Code Compliance Officer position for most of the fiscal year. These savings will provide for
the adequate additional appropriation proposed for part-time contract assistance, currently in
place, to perform the code enforcement function pending recruitment for the position.
The Finance Department experienced two vacancies early in the fiscal year, and should
experience budgetary savings of approximately $90,000 in regular salaries and benefits. These
savings are sufficient to cover the proposed increase in part{ime salaries (94,000) and
contractual services costs ($20,000) needed to cover the workload due to the vacancies.
The Parks Division has been dealing with staffing shortages since the beginning of the fiscal
year. Two full-time vacancies, modified duty restrictions, and military leave have all necessitated
2015-16 Mid-Year Repod March 16, 2016
a higher use of part-time employees than originally anticipated. However the $25,000 additional
part-time costs can be offset by salary savings from the vacancies. Staffing vacancies were also
experienced in the Polico Department due to injuries and one retirement. Overtime was utilized
earlier in the fiscal year in response to a series of burglaries on the east side of the City. The
$30,000 in overtime incurred will be more than offset by the salary savings provided by the
vacancies.
The higher contributions will serve to more quickly fund the plan's previously accrued liabilities.
Estimated employer rates for CaIPERS Classic Employees are shown on page 24 of this report.
Contributions for the City's Miscellaneous Plan employees will remain at one blended rate for
Classic and PEPRA (Public Employees' Pension Reform Act) employees. PEPRA applies to
employees new to the CaIPERS system as of January 1,2013. The Safety Pooled Plan has a
separate employer contribution rate for PEPRA employees (12.8 percent). Five of the City's
safety workforce of 38 employees are PEPRA employees.
Non-Personnel Costs
Small amendments are being proposed within the Human Resources Department to better align
the budget with actual expenditure needs. Demands for the category of Personnel Examinations
are less than anticipated; staff proposes that these savings ($7,000) be reprogrammed to cover
both the costs of recent enhancements to the city-wide safety awareness program($5,000) and
the unanticipated higher costs of professional association fees.
An increase is also proposed in the Recreation budget for program supplies and material due to
increases in enrollment in vacation camps. Although the expense will be offset by income from
the camp programs, savings were identified in building and grounds maintenance ($3,000) and
capital outlay ($1,000) to completely fund this increase. Staff also proposes that an additional
$2,000 originally budgeted for capital outlay be used to increase the travel and meeting budget:
additional staff has been able to attend training opportunities this year, including the national
conference.
40
There is one significant budget amendment proposed in the expenditure category of Employee
Benefits. The increased budget is needed to properly reflect higher pension contributions to the
CaIPERS pension system (pooled Safety Plan) required for the current fiscal year. Beginning in
FY 2015-16, CalPERs will collect employer contributions toward the unfunded liability (UAL) of
pooled plans as dollar amounts instead of the prior method of a contribution rate. Employers are
invoiced for the UAL amount at the beginning of the fiscal year. The plan's normal cosl
contribution will continue to be collected as a percentage of payroll. ln determining pension
costs for the budget, Finance staff determined a percentage of payroll to cover both the normal
costs and UAL, but that calculation proved to be inaccurate. An additional $365,000 will be
needed to cover the safety pension contributions for the current fiscal year. This adjustment
represents a 26.2 percent increase in this line item for the Police Department.
Administrative Services - As previously noted, funding for staffing shortages in the City
Attorney's Office ($83,000) and Finance Department ($20,000) were paid for (at least in part)
through contractual help. The salary savings also cover an additional $2,000 appropriation in the
City Attorney's Office to pay for increased required noticing for various litigation-related
communications.
Parks and Recreation - An increased appropriation is proposed for the Parks Division to
perform needed renovations to drought damaged athletic fields and replacement of select
portions of the Burlingame Avenue landscaping. The $9,000 request can be offset with
anticipated savings in funds budgeted for small tools ($4,000) and capital outlay ($5,000).
201 5-16 Mict-Year Repod March 16, 2016
Rental of the Mills High School gym will replace use of the Burlingame lntermediate School gym,
which is not available for the summer camp program. This rental will need to be prepaid at the
beginning of the season. Program fees will be adjusted for this increase ($14,000) in program
costs.
A $43,000 increase in contractual services is proposed in Recreation due to increases in program
enrollment, in particular youth carpentry, Peninsula Music Together, and Zumba. These
expenses will be more than offset by the revenue increase anticipated for all Recreation classes
in FY 201 5-16.
Finally, staff anticipates an increase in the aquatics programs by approximately 8 percent,
pending the approving of a new contractual agreement with the San Mateo Union High School
District. Because the actual expense will depend on the date the new agreement becomes
effective, no budget amendment is being proposed by staff at this time.
Public Works - Although some budget adjustments were needed between categories for Public
Works activities, the General Fund budget was found to be adequate for regular, ongoing
operations of the department.
41
2015-16 Mid-Year Repod March 16, 2016
City of Burlingame
201 5-1 6 Mid-year Report
Attachment C - General Fund Five-Year Forecast
Forcdst
2077-78
Fonast
2018-19
Forcast
2019-20
Expenditurc Co'f,gotbs
Salaries & Wages
Eenefrts
0perating Costs
lntemalServices
CapitalOutlay
TotalEpenditures
Operadng Revenu€
Transfers ln (Out)
Capital Renewal & Replacement Reserve
Debt Service
Change in Fund galance
(Revised)
Bu.lget
2U5.15
5 11,7t6,4N
13,244,000
25,200,000
1,602,000
973,000
65,000
472,N0
87,000
836,000
220,500
4,544,2@
46,500
157,000
323,000
Forccost
2015-17
s 18,025,000
12,460.000
25,000.m0
1,618,000
990,000
65,m0
400.m0
87,000
8s3,000
226.000
5,000,000
17,000
157,000
389,000
s 18,61s,000
12,932,m0
26,780,000
1,634,000
1,008,000
55,000
408,000
88,000
870,000
232,m0
5,150,000
17,000
158,000
428,000
s 19,231,000
13,320,000
25,052,000
1,583,000
1,027,000
65,000
416,0@
88,000
887,000
237,000
5,305,000
17,000
159,000
471,0m
s 19,876,000
13,720,000
26,8i14,000
t,1343co
1,045,000
65,000
424,000
89,000
905,000
243,000
5,454,000
17,000
159,000
518,000
5 20,ss1,000
14,131,000
27,649,000
1,786,m0
1,065,000
55,000
433,000
89,m0
923,000
249,000
5,628,000
17,000
160,000
570,000
$ 6s,487,600
(1s866,377)
(9,603,940)
(20,7914s3)
(3,299,720r.
i.120,2321
{17,268,000) {17,912,0m) (18,351,000)
(10,612,000) (11,3s3,m0) (12,0s4,000)
(21,995,000) (22,998,000) (24,@6,000)
(3,399,m0) (3,s01,000) (3,506,000)
(124,000) (128,000) (131,000)
(1&876,000)
(12,864,0@)
(2s,089,000)
{3,714,000)
(11sr000)
(19,364,m0)
(13,343,m0)
(26,219,m0)
(3,82s,000)
(139,000)
149,78s,7221 (s3,399,0m) (ss,892,m0) (s8,148,m0) (50,578,000) (52,890,000)
15,701,878 12,889,m0 12393,m0 10,820,0m 10,425,000 10,425,000
,r,288,242)
(s,s00,000)
(6,404,731)
(1,248,000)
(3,000,000)
(5,761,5471
(1,324,000)
{3,000,000)
(5,881,546)
(1,900,000)
(3,m0,m0)
Q,75r,2491
(1,996,000)
(3,000,000)
12,777,739],
(2,106,000)
(3,000,000)
.2,792,471)
s 2,508,905 s 2,873,453 $ 2,287,454 s 3,155,751 5 2,65r,251 s 2,527,523
Property Tax
SalesTax
Transient Occupancy Tax
Other Taxes - Franchise Tax
other Taxes - Business Licenses
other Taxes - State HOPTR
other Taxes - Transfer Tax
licenses & Permits
Fines, Forfeitures & Penalties
Use of Money & Property
Charges for Services
Other Revenue
State Subventions
lnterest lncome
Total Revenues s66,288,000 s 58,385,000 s 68,958,000 s 71,103,000 s 73,316,000
Re'Enue CotegotEs
Foreust
2020-21
APPROVING ADJUSTMENTS TO ESTIMATED REVENUES AND APPROPRIATIONS
WHEREAS the City Council of the City of Burlingame has reviewed and considered the
City's mid-year fiscal analysis; NOW THEREFORE
RESOLVED, by the CITY COUNCIL of the City of Burlingame, California and this
Council does hereby APPROVE and AUTHORIZE the Finance Director & Treasurer to
amend the current Fiscal Year 2015-16 Budget as outlined below to reflect actual fiscal
conditions and projections outlined in the Mid-Year Report:
Amendments to Estimated Revenue
General Fund:
Other Funds:
Measure A
Gas Tax (HUTA)
$ 816,400
1,659,000
2,100,000
19,000
(27,000)
't 12,000
2,000
(129,000)
14,500
140,700
16,500
(18,000)
(77,000)
RESOLUTION NO.
A RESOLUTION OF THE CIry COUNCIL OF THE CITY OF BURLINGAME
IN THE FISCAL YEAR 2015.16 BUDGET
Property Tax
Sales and Use Tax
Transient Occupancy Tax
Other Taxes - Franchise Tax
Other Taxes - Business Licenses
Other Taxes - Real Property Transfer
Tax
Licenses and Permits
Fines, Forfeitures and Penalties
Use of Money and Property
Charges for Services
Other Revenue
State Subventions
lnterest lncome
24,000
38,000
General Fund Transfers ln (Out):
Transfer to Capital Projects Fund - Streets
(from General Fund)
Transfer from General Fund - Streets (to
Capital Projects Fund)
Transfer to Capital Projects Fund - Renewal
and Replacement Reserve (from General
Fund)
Transfer from General Fund (to Capital
Projects Fund - Renewal and Replacement
Reserve)
General Fund:
Finance
Police
Recreation
$(250,000)
250,000
(2,500,000)
2,500,000
$ (66,000)
365,000
52,000
Other Funds:
Street CIP $ 250,000
Mayor
l, MEAGHAN HASSELL-SHEARER, City Clerk of the City of Burlingame, do hereby
certify that the foregoing Resolution was adopted at a special meeting of the City
Council held on the 4th day of March, 2015 and was adopted thereafter by the following
vote:
AYES:
NOES:
ABSENT:
COUNCILMEMBERS:
COUNCILMEMBERS:
COUNCILMEMBERS:
City Clerk
Amendments to Appropriations:
RESOLUTTON NO._
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME
APPROVING THE TRANSFER OF $5 MILLION FROM THE GENERAL FUNO TO
THE CAPITAL PROJECTS FUND - RENEWAL AND REPLACEMENT RESERVE IN
THE FISCAL YEAR 2015-16 BUDGET
WHEREAS, the City of Burlingame's General Fund Reserves Policy was developed to ensure
optimum reserve levels specific to the City and to provide options for responding to unexpected issues
and a buffer against economic downturns and other forms of risk; and
WHEREAS, the General Fund experienced a surplus $5. 1 million higher than anticipated in
the budget for the fiscal year ended June 30, 2015; and
WHEREAS, based on the City's mid-year fiscal analysis the General Fund shows a pro.lected
total fund balance of $31 .7 million at the end of the 201 5-16 fiscal year; and
WHEREAS, the Renewal and Replacement Reserve in the Capital Projects Fund was
established with the intent of providing funding for the replacement of City assets; and
WHEREAS, in recognition of the City's large backlog of facility needs, staff has recommended
that the Renewal and Replacement Reserve be funded by an additional $5 million,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BURLINGAME DOES HEREBY
RESOLVE AND ORDER AS FOLLOWS:
APPROVE and AUTHORIZE the Finance Director & Treasurer to amend the cunent Fiscal Year
2O15-16 Budget as outlined below:
General Fund Transfers ln (Out):
Transfer to Capital Projects Fund - Renewal and
Replacement Reserve (from General Fund)
Transfer from General Fund (to Capital P@ects
Fund - Renewal and Replacement Reserve)
(5,000,000)
5,000,000
Mayor
I, MEAGAN HASSEL-SHEARER, City Clerk of the City of Burlingame, do hereby certify that the
foregoing Resolution was adopted at a special meeting of the City Council held on the 16th day of
March, 2016 and was adopted thereafter by the following vote:
AYES:
NOES:
ABSENT:
COUNCILMEMBERS:
COUNCILMEMBERS:
COUNCILMEMBERS:
City Clerk
3116/2oL6
Summary of Economic Indicators
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Economic lndicator Proiected
20ltl6
Forecast
2016.17
U.S. Real GDP Growth 3.0%
California Non-Farm Employment GroMh 2A%
California Unemployment Rate 5.9%5.6%
California Median Existing Home Prices GroMh 6.5./.8.8%
Califomia Residential Building Permits 98,000 10'1,000
Maior General Fund Sou
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2
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1t.3!t
3t.5ra
Overview
Economic lndicators
Economist lntelligence Unit (ElU) Forecast
Reol GDP Growth US (i1 chonge)
2.2
Source EIUElo!4Oig.nd Commodliv torea3t. Mar.h 20ti
a
ra
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a
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1
3l16l2016
r General Fund Revenue Forecast
r Property Tax Assumptions
o Sales Tax Assumptions
. Transient Occupancy Tax (TOT) Assumptions
. General Fund Revenue Summary
o Expenditure AssumPtions
. lncreasing CaIPERS Employer Rates
. lmpact of Other Personnel Costs
o Next Steps
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3176/2076
Fiscal Year 201 5-16
Mid-Year Status Report
City of Burlingame, CA
Budget Study Session
March 16,2016
BURLI
o Projected Revenues (p.9)
o Property Tax, Sales Tax & Transient
Occupancy Tax
o All General Fund Revenues
o Projected Operating Expenditures (p.10)
o Projected Fund Balance (p.11)
o Other Funds (p.14)
o S-Year Forecast and Next Steps (p.21)
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Overuiew
1
Projected Revenues:
All General Fund Sources
FYl/r-15 FYl5,15
Up lDown) S Up (Dorn) *
Tn.rl6t Ocopancy Lx
au.lo..t tifir..
5r.r. ilorlx
R..l ProFty lr.nstr Lr
An.r Forftltur.. .nd Pen.ltlcs
lrrc of irdlt & Drop.ny
irlr..{.mour 8a.nu.
s16,672381
11,1@,900
23,598,396
916,900,000
t1Ja5,@0
23,100,m0
971,7,6,@
13,244,@0
8,2@.@
3816,400
1,559,000
2,1m,OOO
4.4*
14.3X
9.1%
7579,916
965,675
54,810
435,852
83,840
437,704
207952
4,441,614
1,045,512
465,725
260,7@
1543,000
1,0@,0@
56,m
360,@0
45,0@
965,000
205,0@
4,403,50O
30,ooo
17t@O
400,0d)
1,@2,0@
973,0O
66,00o
47!.@
87,0@
436,000
720,W
4Fr4,2@
15J00
152@
324,0@
19,000
127,m)
0
112,000
2,60
(129,000)
14J@
1{o,7@
165@
{r8,@0)
ln.Nl
IoLl, Gde6l rlnd R.Enoe S5r.909,08r S60,89E,500 sa,529,100 7.lta 3s55,4a7,600
Projected Revenues:
Propertv Tax. Sales Tax & TOT
o Property tax for FY 15-16 expected to be $816kor4.8%
better than adopted budget
. Slightly higher net assessed values
. ERAF Refund - Actual receipt $600K better than budgeted
. 6.2% higher revenues than in prior year
o Sales & use tax actuals expected to be $ 1.6 million or
14.3% better than budget (one{ime)
o Transient occupancy tax (TOT) expected to be $2.1
million or 9.1 % better than budget
. Continued high local occupancy rates neady 85%
2
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FY15-16
1.2%
lz.lxt
0.096
31.1%
2.4*
113.4%l
7.@a
42%
55.016
(ro.3xl
(19-3%)
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3h612016
Projected Revenues:
Sales Tax Triple Flip
alt
o
5
t
Operatinq Expenditures
o lncrease in CaIPERS employer contributions for
Safety Plan
o lncrease in contract personnel in lieu of filling
some vacancies
. Largely offset by salary savings
o lncrease in programming expenditures
. Offset by increased charges for services (revenues) and
savings in other expenses
3
Projected General Fund
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Proposed Transfers to
CapitaI Proieqtsfund
o $250,000 requested for capital improvements
needed in the Hoover School Area:
. Specific traffic & safety improvements - $150,000
. Feasibility Study for sidewalk construction - $100,000
o $2.5 million reduction in General Fund Catastrophic
Reserve (October 2015); increase Renewal and
Replacement Reserve (transfer out)
Pro ected Fund Balance
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CITY OF BU RIINGAM t, CA
GENERAL FU ND MLANCE ASSIGNMEITIS
E.ono.nk Stabary f, .aao!
Subtotrl, Airi3ned Fo.d 8.bnce
,Y2015-16
aYilola-I5 i ldy.r
AriuJ rroj.d.i lhlodnr9 Lh lpoYn)ra
s t3,a@,0o0 5 15,700,000 2,4oo,ooo 18.0t6
4,500,000 2,000,000 l irn::i -55.6%
0 0 0 0.016
500,000 500.000 0 0.0%
Add. U.asslgi.d Fund 8.lanc.
la,3oo,ooo
10r55,052
18,200,000
13J46535
(100,0o01
a,o8!aa3
{5*
29,14
Toral, Endint Fund B.l.nce
4
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s 28,165,052 S !1,7t16,rr5 S 2,9E1.4a3 10.4%
3/76/2076
Other Funds
o Allocation of lnterest Earnings
o Capital Projects Funds
. Update on some completed projects
. Additional appropriations requested for Hoover
School area improvements and study
o Water and Sewer Funds
. Examined for impacts of drought
o Minor adjustments in Other Funds
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o Amend the Fiscal Year 2015-16 Adopted Budget
for estimated revenue and supplemental
appropriations
o Review the Five-Year forecast and consider
additional funding of the Renewal and
Replacement Reserve
5
Next Steps
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Questions & Comments?
Fiscal Year 2015-16
General Fund Five-Year
Financial Forecast
City of Burlingame, CA
Budget Study Session
March 16,2016
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6
3l16l2016
3h6/2ot6
Overview
o General Fund Revenue Forecast
o Property Tax Assumptions
. Sales Tax Assumptions
. Transient Occupancy Tax (TOT) Assumptions
. General Fund Revenue Summary
o Expenditure Assumptions
. lncreasing CaIPERS Employer Rates
. lmpact of Other Personnel Costs
o Next Steps
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Economic lndicators
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Economln lntelllgerre Unlt (ElU) Fo.€Gst
t6i aDp cto*7n lz chah??
2.5
23
2
1
2010 2014
S.uE.: EIU tcono i( .nd (o.nrEdiw Forxrn Fcbru.rv 2015
7
4
3/16/20L6
Summarv of Economic lndicators
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Proiected
2015-16
Forecast
2016-17
U.S. Real GDP GroMh 2.70/o 3.O%
California Non-Farm Employment Grow4h 2.4%
California Unemployment Rate 5.9%5.6%
6.5%8.80/o
California Residential Building Permits 98.000 101.000
Maior General Fund Sources
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Economic lndicator
California Median Existing Home Prices Gruvvlh
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3lL6/2016
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Property Tax Assumptions
o Growth in net assessed values (NAV) contingent upon:
. Higher residential property values
Local 20'16-17 property roll reflects 5.97% growth since
prior year (comp. to 5.5% county-wide)
>6% growth in residential values expected statewide
o However, County inventories of properties for sale
relatively low
o Assume that any significant real estate developments in
pipeline will not be completed in 5 years
Median Home Prices
Bay Area Home Prlces Have
Ou$aced the Besl ot the State
^le.ran
Hdne tuie
1r26,@
40,@
9
i,@r & a6 N, @ tort 2013 2016
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Propertv Tax Assumptions aa
o Decline of Excess ERAF distribution in next
five years
r Based on current year groMh in secured roll,
5.97o/o increase assumed for FY 2016-17
o Five-year forecast assumes 4.0% growth in
four subsequent years
911,1$,e J $'o26,m 9 [,515,@ ! le2rr,e 9 tt,rr6,@ t 2o,tt1.@
Property Tax Assumptions
City of BurlinSame Net Assessed Valuations
Category Parcels Net Asressed Value % Total
Residential
Comme.cial
lndunrial
Gov't Owned
lnstitutional
Miscellaneous
Rec,eational
va.ant/other
SgE Nonunitary
Unsecured
Totals
7,750
471
195
2
M
727
19
57
I4l
[1,0071
55,106,922,682
7,406,432,24L
497,904',9L7
1,135,878
6,739,774
52,54L,265
27,696,48t
42,238,634
2,560,452
307,2Us06
72.3%
L6.?%
5.8%
0.0%
0.1%
0.6%
0.3%
0.5%
o.o%
3.6%
Historkal towth
8,665 54,270 100.0%
3l16l2oL6
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30116 BlrE GdrRd
306.1 5I-tEC.IFGarlPl6
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Sales Tax Assumptions
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a Expected 4.6% average growth slatewde in fiscal year
2016-17 across all categories
Tarable Sal€s by Category
iEqrarter erolected erolected
of 2015 FY2015-15 FY201GU
Total Growlh GroMh
Autos & Traniportalbn
Buildint & Conatructbn
Buriness & lndustry
Food & Drugs
Fuel& SeNke SLtions
Generel consumer Goodt
Restaurants & ]totab
state & county Pools
32-86
5.5t6
75.9%
1.2%
1.6*
11.9%
13-996
133%
1.4%
7.7%
3.7%
2.5%
-a.7%
3.O%
6.7%
8.4%
3.1%
2.M
t.s%
1.9%
2.7*
2.69t
3.8%
4.4%
100.oet 5.4* 2.91
3/L6/2oL6
11
THE CITY OF BURLINGAME
PROPERTY TAX DOLLAR BREAKOOWN
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Sales Tax Assumptions
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Fy201s-16 Fy20t6-17 FY2017-18 FY2018-19 FY2019-20
Saler & UseTar S11,585,100 S12,106,430 S12,620,953 573,725,791 S13,585,194
Sales Tax Assumptions
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3l16/2ot6
72
Percentage Glowth in E{odlmcrt!
SahB E'sus Tot l ktail Salcr
Fifio.. oa o.lE .l
o Expected growth in US Real GDP is -3.6Yo
o California GDP groMh is (est.) 4.1% (2014)
o Five year forecast provides for a 5.8o/o increase
in 2Of.Ft9, declining to 3.5%, which coincides
with oiheiiindicators
Sales Tax Assumptions
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t6,!0
.4,00
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-
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3/L6/2Ot6
TOT Assumptions
o The City's largest and most economically sensiti VE
revenue source
o S-year forecast assumes 3% growth in 2016-17
. Assumes capped growth in ADRs due to price elasticity
(cunently averaginS $206 in San Francisco-San Mateo)
. Assumes continued high occupancy rates regionally
. Adjustment made for new SFO hotel (est. 400 rooms, FY18-19)
o Staff will continue to monitor receipts and will revise
forecast if needed
Fy2015-16 Fy201&17 aY2017-18 FY201&19 FY2019-20
TOT s23,O66,218 523,868,000 s24,A22,72O 524,294,174 s2s,26s,878 26
SAI-ES PER CAPTTA
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General Fund Revenue Forecast
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Summa
orh.. T.g - tnrhi- Lr
Othr Tus - aulrB lk.G
rE, Fo.t itc I tdni6
-----2)9s5a,,.1,a
General Fund Expenditures Forec ast
aaaaaoaaoaa.aaaaaaaaAssumptions
lrEludes e66ct of cun€nt collecl,ve targEinirg agr€€merts, lrEluding
rccenUy Etfied MOUS 6r AFSCME, Departmont H6ads ad
CaIPERS rates lo dse, Egdfcandy in for€cast y€a,s
Oaler b€rEfls to irEreaso at rarynE rates (from 0-10.6%)
lrElrdes a payoll surchaB€ to fund cunent cos| of retjree m€dical
benefits
IrEludes omdoyee contributions to lEallh care and PERS in
accordarce with MOJS
Based upon cost of livillg adjustrnerls ,or most nor4€rsonnei cosls,
6% escalalion factor br C€nhal Couty Fila
includos a payroll surcharge to fufi prevbusly i1c!fiod costs
associated wi$ Etir€€ medical berEfiG for former employoes
Reductron in debt seMc€ r€iecled in 20r&r9
Non-Pe.sonnel Costs
3lL6l2oL6
14
s n,@5,m t l.fl5,@ t re:rr,oo s 1er75.m 9 20IsL@
rl3r01!o rl20Io 14,131,oo
r,6r,00 !5r4,m t$r,@o 1,rx,000 ,"z6,mo
t25,,, z!2.o00 ,rr,o0o 2a10oo 241mo
$4rr4m t..,r.sr6 9..,t.,o 9rr,1o+o tL,3r66
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Actual d€bt s€rMbe fo( aI odstandie bond issr.Ea: payofi of Masler
Equpmonl L6es€ Puehase (t250K anrually), and 12.8 mallbn drcp in
debt soNice on Peftsion Obligalion Bords in fscal ,sar 2019
Ass.mes no lErv oerEral obliqalion debt issuarEes or lefimrcinas
Bas€d upon a 3% blend€d esc€lalion factor
C a pi tal O dl a y (de partn e n tal )8as€ ol 5200,000 plus 3% grcwth
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equival€nl to 2% of ToT rEvenues
3h6/2oL6
Forecast of CaIPERS Rates
o FY 2015-16 Rates (base)
. Miscellaneous Employees 21 .17%o
. Safety Employees 2o.23o/o + $775,593
e Rates do not include employee contributions
o Estimated rates are for "classic" employees -
rates for PEPRA employees will decrease
costs over time
Enimated calPEtls Rat.5
20!ei
2017-18
201&19
201920
2GIo-ZI
22.44%
24.M
26.60t4
24.ffi
24.&
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21.2C,6 + s 1,174,s39
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15
General Fund Expenditures Forecast
Assumptions (continued)
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Emplovee Gontributions
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reduce pension costs
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. PEPRA - Annual contributions for new employees
cannot be less than employer normal cost
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o Offsets increases to health care costs
r Retiree medical program closed to new
employees (November 201 1)
Forecast of OPEB Contribution
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. OPEB contributions will increase as shown:
5,215
5.8'
5,381
5,458
5,555
. City fully funds the ARC
o However, OPEB costs will be partially
allocated to other funds, including Enterprise
Funds (approx. 17o/o)
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7016.17
2017,18
20la-!9
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General Fund Expenditure
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Forecast (Summarv)
202G2'
Recommendations
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o Resolution to Amend the FY 201 5-16
Operating and Capital Budgets to Reflect
Mid-year Adjustments
o Resolution to transfer an additional $5 million
to the Capital Projects Fund Renewal and
Replacement Reserve
Questions & Comments?
3/L6/2A76
18
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STAFF REPORT AGENDA NO: 6b
To:Honorable Mayor and City Council
Date: March 16,2016
From: Syed Murtuza, Director of Public Works - (650) 558-7230
MEETING DATE: March '16.2016
Review of Draft FY 2016-17 General Fund, Gas Tax, Measure A, and
Measure M Funds Capital lmprovement Program (ClP)
Subject:
Staff recommends that the City Council review the proposed draft General Fund, Gas Tax,
Measure A, and Measure M Funds CIP and provide feedback.
Historically, staff has presented the City Council with a draft of the proposed General Fund CIP
as part of the mid-year budget update study session in order to receive Council feedback with
sufficient time to incorporate any changes priorto the adoption ofthe budget. The proposed draft
CIP includes General Fund projects, Gas Tax, and Measure A funded projects.
GENERAL FUND PROJECTS:
ln developing the FY 2016-17 ClP, staff conducted a needs assessment of various infrastructure
owned by the City and identified a total of $4,485,000 of improvements under the General Fund
CIP as follows:
Sidewalk R eoair Prooram and ADA (Americans with Disabilitv Act) Ramps lm orovements
($600,000)
Staff is proposing a total of $1,575,000 for the following Parks and Recreation improvements
projects:
1
RECOMMENDATION
BACKGROUND
DISCUSSION
The City maintains approximately 1 16 miles of sidewalk and has an eslimated $1 0-$1 5M backlog
of sidewalk and ADA-related work. Staff is proposing $500,000 to address sidewalk tripping
hazards in several areas throughout the City. ln addition, staff is proposing $100,000 to upgrade
intersection curb ramps at several locations throughout the City to comply with Americans with
Disability Act standards.
Parks and Recrealion lmprovements ($1.575.000)
Review of Dratt FY 2016-17 Genercl Fund, Gas Tax, Measurc A and lll Funds CIP
Murray Field Synthetic Turf/Grass: Murray soccer field is in dire need of a renovation. This
will be the first renovation since the field was installed in 2000. The current irrigation system
is undersized and does not adequately water the field. The drought, in combination with the
irrigation, has led to a surface that is bare, patchy and uneven, which leaves a less-than-ideal
playing surface. Staff has tried to repair the worst areas, but a complete renovation is
required. lnstallation of a synthetic turf (non-rubber) will allow for year-round play and a
reduction in water usage. Depending on the infill used for the synthetic turf (such as coconul
husks), some water may be required. However, the use of water will be significantly less than
that needed for natural grass. Calculations are being done to determine the estimated water
savings. The estimated cost for the design development and preparation of construction
documents is approximately $500,000. Upon completion of the design development, staff will
return to the City Council to seek approval of construction ofthe project.
Ray Park Playground: The playground facility at Ray Park was constructed in the late 1990's.
The playground does not meet current safety standards and needs to be upgraded. staff is in
the process of project design development. The estimated construction cost of this project is
approximately $350,000.
Southern Pacific (S.P.) Circle Plaza lmprovements: This project, which involves construction
of a plaza in front of the Burlingame Avenue Train Station, was partially funded in FY 2015-
16. The design concept has now been completed. The next phase of the project is to develop
engineering design and conslruction documents, which is estimated to cost approximately
$2OO,OOO. After completion of the design and construction documents, staff will return to the
City Council to seek approval for construction in FY 20'17-18.
Athletic Fields Complete Renovations: The athletic fields throughout the city are in need of
complete renovation due to age, overuse, and water restrictions. These include Washington
Park, Ray Park and Village Park. staff has prioritized washington Park and Ray Park fields
for the next fiscal year, and estimates the cost of work to be approximately $200,000. Staff
will return to the City Council in the next fiscal year to request funding to renovate other
facilities.
Victoria Park Reconstruction Design: Staff is in the process of developing engineering design
for a new Storm Water Pump Station at Victoria Park to address the flood proteclion needs in
the area. The construction of a new pump station will require Victoria Park to be
reconstructed. Staff is requesting $100,000 to develop engineering design for the park as
part of the FY 2016-17 work program. Staff will return to the city council in FY 2017-18 to
seek approval for construction of the new improvements.
playground Resurfacing: Many of the city's playgrounds have resilient surfacing that is in
need of repair or replacemenl. Staff has developed an annual surfacing program to address
the playground needs. Staff has ranked the priority of repair/replacement based on severity
of the problems, and is requesting $60,000 in FY 2016-17 to perform the work on
cuernavaca, Pershing, and washington playgrounds and replace the surfacing at Trenton
playground.
2
March 16,2016
March 16,2016
Parks Fencing Repairs: Much of the fencing in city parks is original fencing, and it is in need
of replacement due to rust, broken fencing, and mis-aligned fencing. Staff is planning to
address the fencing needs throughout all Parks facilities on an ongoing annual basis, and is
requesting $60,000 for the FY 2016-17 budget.
Playground Replacement Fund and Annual Tree Replacement: staff is requesting the
creation of a Playground Replacement Fund to help minimize large one{ime costs for each
playground. Staff has completed an assessment of all city playgrounds and ranked them by
amount of usage, the age of the equipment, the type and amount of accessibility deficiencies,
and safety concerns. With this information, staff recommends that a systematic replacement
of playgrounds should be implemented over the next five years, at an annual cost of
approximately $5O,OOO. Additionally, the Annual Tree Replacement Program continues to be
a high priority in order to maintain the urban forest. The estimated cost of the Annual Tree
Replacement Program is approximately $5,000. The total requested funding for both
programs is $55,000.
parks lrrigation System Upgrade: Staff has been systematically installing a centralized water
wise irrigation system to replace the existing less water efficient water controllers throughout
the Parks system. The project includes installing flow meters that can shut down
automatically or remotely if abnormal water usage is detected. The estimated cost for
complete installation throughout the city is approximately $380,000. Staff is requesting
$5O,OOO on an annual basis in a phased approach to complete the proiect. The amount
requested is based on the capacity of staff to complete each phase of the project on an
annual basis.
The City owns and maintains 20 building facilities with over 200,000 square feet of office space.
Many of the building facilities and associated components are aging and need upgrades Timely
maintenance will extend the life of the facilities. Staff is proposing a total of $1,350,000 for the
following building facilities improvements projects:
Police Station Fuel Tank Removal and Replacement: The Police Station fuel tanks are
approximately 32 years old and have reached their originally intended service life. Taking a
proactive approach will allow up to two years to remove both tanks in a non-emergency
condition. However, a Notice of Violation from regulatory authorities will only allow for aS little
as 90 days by law to remove both tanks and address the potentially contaminated soil. Staff is
requesting $5oo,ooo to develop engineering plans and construction documents for the
removal and replacement of these tanks. upon completion of the engineering design, staff will
return to the City Council to seek approval for the construction of the proiect'
Buildi Facilities lm ments ($1,3 50,000)
Energy Efficiency Upgrades: staff recently completed an Energy Efficiency study for city
facilities funded in part by a grant from the california Energy commission. Replacement of
lighting fixtures was identified as one of the top priorities for conserving energy. staff is
recommending budgeting $3O0,OOO in FY 201 6-17 to undertake the lighting fixture
replacements to improve energy efficiencies in building facilities'
3
Review of Dnft FY 2016-17 General Fund, Cas Tax, Measurc A and M Funds CIP
Review of Dnft FY 2016-17 General Fund, Gas Tax, Measure A and M Funds CIP March 16,2016
Parking Lots Resurfacing: The Cily Hall, Recreation Center, Corporation Yard and Police
Station parking lot surfacing is deteriorated and has surface failures with cracks. Resurfacing
the parking lots in a timely manner will help avoid a more costly replacement. The estimated
cost for this project is approximately $250,000.
General Facilities Upgrades: With the exception of the Main Library and the Corporation Yard
buildings, most of the City's building facilities are approximately 32 to 67 years old, and have
not had any major upgrades since their original construction. Many components of the
building systems have served their intended design life and need to be upgraded. Staff is in
the process of performing a condition assessment study of all buildings and developing a
master plan of improvements to maintain these buildings in a good condition, in order to
continue providing services to the community. The master plan is expected to be completed
by fall 2016. Staff recommends setting aside a minimum of $100,000 to undertake projects in
the next flscal year based on recommendations in the master plan.
Facilities ADA lmprovements: This is a multi-year program to address the ADA improvements
identified in the Assessment Study. The work identified in next year's program consists of
improving the reception work station areas and counters at the Public works corporation
Yard to be compliant with AOA. The work also includes improvements to disabled parking
spaces at the facility to bring them into compliance with ADA. Staff is recommending $50,000
in the next fiscal year's budget for this effort.
Stormwaler Pollution Prevention Plan for Facilities: State law requires that the Public Works
Corp Yard and Parks Yard facilities have Stormwater Pollution Prevention Plans in order to be
compliant with Water Quality regulations. Staff is recommending $50,000 in the next flscal
year's budget to prepare Stormwater Pollution Prevention Plans for these facilities-
Community Development Department Remodeling: The interior, non-structural partition wall
between the Planning Division offices and the Building Division offices needs to be removed
to create an open floor plan to improve space efficiencies. The existing public counter will be
reconfigured for improved functionality. Further, the present configuration of the Community
Development Department segregates the Planning Division from the Building Division in a
manner that impedes the efficient collaboration of the work between the two divisions. A
more equitable and efficient space plan is needed to meet the needs of the department. The
estimated cost for this project is approximately $100,000. Staff recommends a budget of
$5O,OOO from the General Fund and $50,000 from the Building Enterprise Fund.
Washington Park Grandstand Remodeling: The existing restroom facilities associated with the
grandstand in Washington Park are inadequate. Staff recommends conducting a feasibility
Study to determine the scope of the restroom remodel, current cOde requirements based on
the capacity of the grandstand, and necessary modifications. The estimated cost for an
engineering feasibility study is approximately $50,000.
4
Review of Draft FY 2016-17 General Fund, Gas fax, Measure A and M Funds CIP March 16,2016
Staff is proposing the following traffic safety improvements projects:
Oak Grove Avenue and Carolan Avenue lntersection Traffic Signal lmprovements: The four-
way intersection of Oak Grove Ave. and Carolan Ave. is currently controlled by stop signs in
three approaches. Traffic from northbound California Dr. has a free right-of-way into the
intersection, which creates confusion for the other three approaches. During certain times of
the day, the intersection is congested with traffic on Carolan Ave., either from Broadway
commute traffic or traffic from Burlingame High School, which further exacerbates the
situation. The project consists of performing an engineering analysis, developing design, and
construction of a new traffic signal at this intersection to improve safety and help regulate
traffic flow. The estimated cost for the design development and construction is approximately
$500,000.
City Hall Area Trafflc and Pedestrian Safety lmprovements: Staff is currently in the process of
performing traffic studies in the City Hall area to determine appropriate improvements to
address traffic speeding and pedestrian safety needs. The study is anticipated to be
completed later this year. Staff is recommending setting aside approximately $200,000 to
construct necessary improvements to address the traffic calming and pedestrian safety
improvements as may be identified in the study.
El Camino Real Stakeholder Process: Based on the City Council's direction regarding the
Memorandum of Understanding with Caltrans relative to the El Camino ReauFloribunda
Avenue lntersection Project, staff will be setting up a stakeholder process to review, explore
and identify mutually agreeable solutions to address the El Camino Real Corridor issues. Staff
anticipates that an outside consultant is needed to manage and facilitate the process, and is
recommending a preliminary budget of approximately $100,000 for consultant services in this
regard.
Annual Traffic Studies: This is an annual program that addresses the ongoing need for
specific traffic analyses that typically arises throughout the city over the course of the fiscal
year, These studies are generally small in scale, and are designed to collect very specific
data over short, finite durations. The studies may include traffic volume counts, turning
movement analyses, vehicle speed surveys, or other "spot" studies required at specific
locations. Staff recommends a budget of approximately $100,000 to address this need.
Over the last several years, the City Council has funded the Police Station Antenna Upgrade
Project in a gradual and phased approach. Staff is requesting a budget of $60,000 to complete
the project in the next fiscal year. This will be the flnal project phase. The completed project will
help improve the dispatch center communication system efficiencies.
Traffic Safetv lmprovements ($900.000)
Police Stat,on Antenna Proiect ($60.000)
Review of Oraft FY 2016-17 Genenl Fund, Gas Tax, lleasure A and M Funds CIP March 16,2016
GAS TAX, MEASURE A AND MEASURE M FUNDED PROJECTS:
Based on a condition assessment of street infrastructure, staff is proposing a total of $2,700,000
from a combination of Gas Tax, Measure A Funds and Measure M Funds for the next fiscal year's
street improvements program as follows:
FY 2016-17 Annual Street Resurfacinq Proqram ($2,500,000)
The City owns and maintains approximately 84 miles of streets valued at approximately $80M.
The backlog of work for street maintenance is estimated at $19M. Based on the streets
assessment conditions and pavement management program recommendations, staff is proposing
the following high priority streets be resurfaced as part of the Annual Street Resurfacing Program:
El Camino Real frontage Rd., Clarendon Rd., Laguna Ave., Maple Ave., Ogden Ave., Paloma
Ave., Park Rd., Sanchez Ave., Sebastian Ave., Sequoia Ave., Vernon Way, Peninsula Ave., and
Bayshore Highway. Additionally, the program includes funding for the resurfacing of Carolan
Ave. as part of the Complete Streets lmprovements Project, and Street Monuments Restoration
Master Plan.
The City owns and maintains approximately 116 miles of curb and gutter. Similar to the sidewalk
conditions, several segments of curb and gutter facilities are deteriorated and need to be
replaced to address public health and safety concerns. Staff is recommending $200,000 to
replace curb and gutter in the critical areas citywide as part of the annual program.
SETTING ASIDE FUNDS (IF FEASIBLE} FOR OTHER PROJECTS:
The City Council may wish to consider setting aside funds from available unassigned fund
balances and future revenue towards addressing the following needs:
Though the Cily Council continues to fund the sidewalk and ADA program needs on a regular
basis as part of the 50/50 Sidewalk Program, there continues to be a significant backlog of work
related to sidewalks due to aging infrastructure and tree-related problems. Staff eslimates the
backlog to range from approximately $10M to $15M.
Hoover School Area Sidewalk lmprovements
The preliminary study conducted by staff earlier this year indicated that approximately $3.2M
would be needed to address pedestrian safety improvements near Hoover School. Staff will be
undertaking a feasibility study that will provide more information regarding the project scope and
costs to address the needs.
6
Annual Citywide Curb and Gutter Reolacement Proqram ($200,000)
Sidewalk and ADA lmprovements
March 16, 2016
The majority of the City's building facilities has served their original intended design life, and need
major improvements. Though the City Council regularly invests in building maintenance, major
building components are overdue for replacement. Some of these are being included in the CIP
program. Staff is in the process of preparing a master plan to identify and prioritize building
improvements of all facilities to undertake projects as funding becomes available.
The Broadway Grade Separation Project is in the proiect study report (PSR) phase at this time.
The preliminary project cost is estimated at approximately $240M. Upon completion of the PSR
phase, staff will explore opportunities to obtain external funding to advance the project into the
design and environmental phase. Staff believes that, as the project advances towards the
construction phase, the City will be required to provide a local match towards the construction.
Though it is very preliminary at this time, staff estimates that a local match may range from $15M
to $20M. The City Council may wish to set aside funds towards this goal, which would
significantly help the City to advocate and leverage funding from outside agencies.
The proposed General Fund CIP budget for FY 2016-17 is $4,485,000. However, the projected
funding from the 2% Transient Occupancy Tax (TOT) is estimated at approximately $4,300,000.
The City Council may wish to fund all the projects listed by utilizing additional monies from the
General Fund's unassigned fund balance or provide other direction.
Exhibits:
. Draft FY2O16-17 General Fund CIP Spreadsheet
o PowerPointPresentation
7
Review of Draft FY 2016-17 General Fund, Gas Tax, Measurc A and M Funds CIP
Buildino Facilities lmprovements
Broadwav Grade Separation
FISCAL IMPACT
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FY 2016-17 General Funds GIP
. Total recommended for General Fund CIP
funding is $4.485M
. Approximately $4.3M in 2% TOT is
projected for the next fiscal year
. Council may authorize additional funds
from the Genera! Fund's unassigned fund
balance or give other direction
Sidewalk Program
$7M - S11M
estimated backlog
Recommend $500k
for next lrear
City maintain '116
miles of sidewalks
valued at 20M
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ADA Curb Ramps
$4M of estimated backlog
I t,ZAO ramps needed citywide
Recommend $100k to install
25-30 ramps in high use areasI
Location Map of Sidewalk Program &
ADA Gurb Ramps
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Athletic Fields Renovation (Cib/wide Parks)
$500
$350
$200
$200
$100
$60
$60
$55
$50
$1,575
S.P Circle Plaza lmprovements
Mctoria Park Reconstruction Design
Playground Resurfacing
Parks Fencing Repairs
Playground Replacement & Trees
lnigation Systems Upgrades
Total Recommended:
Projects Recommendations
Munay Field Synthetic Turf
Ray Park Playground
Parks & Recreation Projects
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Building Facilities Projects
. City maintains 20 buildings with over 200,000 sq. ft.
. Timely maintenance extends life of building facilities
. Recommend $1,350,000 annual program
Building Facilities Projects
Police Station Fuel Tank Removal and Replacement
General Facilities Upgrade per Master Plan
Community Development Department Remodeling
Washington Park Grandstand Remodeling
Energy Efficiency Upgrades
$100
ADA lmprovements
Stormwater Pollution Prevention Plan
Total Recommended:st,350
Projects
$250
$50
$s0
$50
$50
Hall Rec
Parking Lots Resurf acing
Recommendations
$500
$300
Yard & Police Station)
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Traffc Studies (Annual Program)
Total Recommended:
Projects
$500
$900
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Oak Grove Ave./Carolan Ave. Traffic Signal
City HallArea Traffic & Pedeslrian Safety
Recommendations
$200
$100
$100
Equipment/Radio Anten na
Police Station
Antenna Upgrade
. Estimated Cost is
$60k (final phase)
7
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Gas Tax, Measure A & M
Funded Projects
City maintains 84 miles of streets valued at $80M
Estimated backlog is $19M
Recommend a total of $2.7M for Streets lmprovements
Program
The tollowing pIoiects are
recommended:
Recodtm€ndAions
t2,700
$2,500
$200
Total Recommended
O Annual Street Resurfacing Program -
A Camino R€al Fro.'iage Rd., Carclan
Av€., Clar€ndon Ave., Lagunaave., kurel
Ave., MapleAv€., Ogdon Ave-, PalorB
Ave., Pafi Rd.. Sanchez ave., Sebastan
Av€-, Sequda Av€., V€ho. ave.. Pe.insula
Ave. and Bat€nore High*ay.
O Street ftronuments Res{oration
Program
O Citywide Street Curb and Gutter
Replacement Program
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Location Map of FY 2016-17
Street Resurfacing Program
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311112016
ADA Curb Ramps
Parks and Recreation Poects
Building Facilities Projects
Traff c Safety lmprovements
Equipment - P.D. Radio Antenna Poect
Projectr Recommendations
$4,,t85
Sidewalk Repair Program $s00
$100
$1,575
$r,350
$900
$60
Consider Setting Aside
Funds for Other Needs
. Sidewalk and ADA lmprovements
. Hoover SchoolArea Sidewalk
lmprovements
. Building Facilities lmprovements
. Broadway Grade Separation
I
\Summary of Draft FY 2016-17
General Funds CIP
Total:
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\
3t11t2016
10
' City C6uncil
Feedback & Direction
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