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HomeMy WebLinkAboutMin - CC - 2024.03.13 (Mid-Year Budget Study Session)CITY c- BURLINGAME *F s a ��Fxrm JUKE 6 BURLINGAME CITY COUNCIL Approved Minutes FY 2023-24 Mid -Year Budget Study Session on March 13, 2024 1. CALL TO ORDER A duly noticed meeting of the Burlingame City Council was held on the above date in person and via Zoom at 6:30 p.m. 2. PLEDGE OF ALLEGIANCE TO THE FLAG The pledge of allegiance was led by Andrea Pappajohn. 3. ROLL CALL MEMBERS PRESENT: Beach, Brownrigg*, Colson, Ortiz, Stevenson MEMBERS ABSENT: None * Councilmember Brownrigg appeared remotely from Oregon. 4. REQUEST FOR AB 2249 REMOTE PARTICIPATION There were no requests. 5. PUBLIC COMMENTS There were no public comments. 6. STAFF REPORTS AND COMMUNICATIONS a. ADOPTION OF A RESOLUTION AMENDING THE FY 2023-24 OPERATING AND CAPITAL BUDGET TO REFLECT THE RECOMMENDED MID -YEAR ADJUSTMENTS AND ADOPTION OF A RESOLUTION AUTHORIZING POSITION AMENDMENT Finance Director Yu -Scott began by reviewing the FY 2022-23 General Fund audit results. She discussed the following: 1 Fund Balance on July 1, 2022 Revenues Expenditures Transfers in/out Fund Balance on June 30, 2023 $47.4 million $83.6 million $(68.3 million) $(7.7 million) $55 million Finance Director Yu -Scott discussed the $55 million fund balance and how it is being utilized: • $21.3 million assigned — economic stability reserve, contingency reserve, catastrophic reserve • $17.6 million restricted pension • $15.8 million unassigned • $0.3 million non -spendable — prepaids Finance Director Yu -Scott reviewed the following chart re2ardinR the FY 2023-24 General Fund revenues: General Fund Revenue (in thousands) Adopted Budget Current Budget Mid -Year Revised Budget Total Mid -Year Changes ($) Total Mid -Year Changes (%) Property Tax $31,645 $31,645 $31,077 $(568) (1.8%) Sales and Use Tax $17,458 $17,458 $17,087 $(371) (2.1%) Transient Occupancy Tax $17,919 $17,919 $18,828 $909 5.1% Other Taxes $3,811 $3,811 $3,911 $100 2.6% Charges for Services $6,909 $6,909 $7,749 $840 12.2% Others $2,768 $2,768 $3,279 $511 18.5% Total $80,510 $80,510 $81,930 $1,421 1.8% Finance Director Yu -Scott reviewed the City's property tax revenue history: • FY 2014-15 - $16.7 million • FY 2015-16 - $17.6 million • FY 2016-17 - $18.9 million • FY 2017-18 - $20.3 million • FY 2018-19 - $22 million • FY 2019-20 - $23.3 million • FY 2020-21 - $24.2 million • FY 2021-22 - $27.7 million • FY 2022-23 - $31.3 million • FY 2023-24 (estimated) - $31.1 million Next, Finance Director Yu -Scott reviewed the City's sales tax revenue history: • FY 2014-15 - $11.1 million • FY 2015-16 - $12.8 million • FY 2016-17 - $12.1 million 2 • FY 2017-18 - $12.3 million • FY 2018-19 - $15.3 million • FY 2019-20 - $12.5 million • FY 2020-21 - $13.1 million • FY 2021-22 - $14.6 million • FY 2022-23 - $14.0 million • FY 2023-24 (estimated) - $14.0 million Finance Director Yu -Scott reviewed the City's TOT revenue history: • FY 2014-15 - $23.7 million • FY 2015-16 - $26.1 million • FY 2016-17 - $26.3 million • FY 2017-18 - $27.9 million • FY 2018-19 - $29.4 million • FY 2019-20 - $20.4 million • FY 2020-21 - $5.7 million • FY 2021-22 - $12.4 million • FY 2022-23 - $18.3 million • FY 2023-24 (estimated) - $18.8 million Finance Director Yu -Scott stated that the budget adopted for FY 2023-24 included General Fund expenditures of $74.5 million. However, she explained that the mid -year budget included a proposed 1.9% increase due to the following changes: • $611,000 increase to salaries and wages • $97,000 increase to benefits • $760,000 increase to operating costs • $22,000 increase to capital outlay Finance Director Yu -Scott reviewed the FY 2023-24 General Fund balance: General Fund (in FY 2022-23 Actual FY 2023-24 Adopted FY 2023-24 Mid -Year thousands) Budget Beginning Fund Balance $47,394 $43,971 $54,993 (audited) Projected revenues $83,582 $80,510 $81,930 Projected departmental ($68,246) ($74,519) ($79,487) expenditures Subtotal, Revenue Net $15,336 $5,991 $2,443 of Expenditures Transfer to Debt Service ($3,600) ($3,623) ($3,623) Transfer to Capital ($6,042) ($6,620) ($7,136) Project Fund 3 Other Transfers In (Out) $1,905 $1,866 $1,923 of General Fund Ending Fund Balance $54,993 $41,585 $48,600 (Projected) Finance Director Yu -Scott reviewed the FY 2023-24 Mid -Year General Fund balance of $48.6 million. She explained that this balance is divided up into the following reserves: • Economic Stability Reserve - $19,663,000 • Catastrophic Reserve - $2,000,000 • Contingency Reserve - $500,000 • Pension Trust Fund - $18,432,215 • Unassigned Fund Balance - $8,005,269 She noted that in addition to the General Fund reserves, the City also has a Capital Reserve Fund in the amount of $20,597,670, which is earmarked for the Broadway Grade Separation project and the El Camino Real underground utility project. Finance Director Yu -Scott reviewed FY 2023-24 revisions to transfers in and out: Transfers In: • Special Revenue — ($5,000) • Parks and Trees CIP - $55,000 • Street CIP - $90,000 • Facilities CIP - $185,000 • Landfill Fund - $1 million Transfers Out: • General Fund - $80,000 • Measure A Fund - $60,000 • Parking Fund - $35,000 • Public Facilities Impact Fee - $130,000 • Solid Waste Fund - $1 million Finance Director Yu -Scott reviewed the General Fund 5-Year Forecast: General Fund FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 (in thousands) New Forecast Forecast Forecast Forecast Forecast Projection Total Revenues $81,930 $86,172 $89,928 $93,348 $96,926 $100,676 Total ($79,487) ($79,352) ($82,545) ($85,900) ($89,291) ($93,001) Expenditures Revenue Over $,2443 $6,820 $7,382 $7,448 $7,635 $7,675 (Under) Expenditures 4 Transfer to ($7,136) ($12,540) ($10,720) ($7,620) ($6,920) ($5,620) Capital Project Fund Transfer to Debt ($3,623) ($3,650) ($3,122) ($3,105) ($3,104) ($3,111) Service Fund Other Transfers $1,923 $1,914 $1,823 $1,862 $1,912 $1,963 In (Out) Change in Fund ($6,393) ($7,456) ($4,636) ($1,415) ($477) $907 Balance before adjustment Adjustment — ($868) ($500) ($500) ($500) ($500) ($500) Transfer to Pension Trust Net ($7,261) ($7,956) ($5,136) ($1,915) ($977) $407 Surplus/(Deficit) Vice Mayor Beach stated that the City is continuously investing in capital project funds. She explained that when the City adjusts its fund balance, it is because the City is investing in different reserves and funds. She asked if this was a fair characterization. Finance Director Yu -Scott replied in the affirmative. Councilmember Brownrigg stated that he found the chart to be a little hard to understand as it looks like the City is intentionally deficit spending. He explained that he thought it would be helpful to show on these charts that there are reserves in order to assure the community that the City isn't spending more than it has. Councilmember Ortiz stated that he thought it was important to not create the perception that the City is swimming in funds to handle capital projects. He also noted that the capital projects that the City was investing in were necessary and not luxury items. City Manager Goldman stated that she would work with Finance Director Yu -Scott to determine the best way to show that the City does not need to raise funds and instead has an ending fund balance. She added that the City is not as flush as it once was, which is what the chart depicts. Councilmember Brownrigg stated that the City weathered a big storm due to COVID. He added that the City has been able to keep its employees while cutting down on spending. Mayor Colson stated that staff proposed a $500,000 transfer to the Pension Trust but is looking for direction from Council. She asked how much is in the Pension Trust. Finance Director Yu -Scott replied that there is $18.4 million in the Pension Trust Fund. Mayor Colson stated that if the Council approves staff's suggestion, then over the next five years, the City will add another $2.5 million to the Pension Trust Fund. 5 Councilmember Stevenson stated that he was good with the $500,000 as it provides the City with flexibility. Councilmember Brownrigg concurred. Finance Director Yu -Scott stated that staff is asking for a reclassification of a part time (0.45 FTE) to permanent part-time (0.75 FTE) administrative assistant II position. Mayor Colson stated that she thought this was beyond reasonable in order to better help staff deal with the increased demand of work and also to meet the needs of the community. Councilmember Brownrigg concurred. He stated that he appreciates that the City doesn't grow ahead of need and is instead disciplined. He added that the City did need to recognize that it is growing and may need to further address staffing needs. Mayor Colson opened the item up for public comment. No one spoke. Vice Mayor Beach made a motion to adopt Resolution Number 029-2024; seconded by Councilmember Ortiz. The motion passed unanimously by roll call vote, 5-0. Councilmember Ortiz made a motion to adopt Resolution Number 030-2024; seconded by Councilmember Stevenson. The motion passed unanimously by roll call vote, 5-0. Mayor Colson thanked staff for the presentation. b. REVIEW OF DRAFT FY 2024-25 CAPITAL IMPROVEMENT PROGRAM FUNDED BY THE GENERAL FUND. MEASURE I. GAS TAX. MEASURE A. SENATE BILL (SB 1). PARKING ENTERPRISE FUNDS. PUBLIC FACILITIES IMPACT FEES, AND DEVELOPMENT FEES Senior Civil Engineer Okada began by reviewing the proposed draft CIP funding by source for FY 2024-25: Funding Source FY 2024-25 Requests (in thousands) General Fund $9,540 Measure 1 ($1 million for sidewalks, streets, and town square) $3,000 Gas Tax, Measure A, and SB 1 $2,875 Parking Enterprise Fund $400 Impact Fees $3,150 Grants/Loans $6,500 TOTAL $25,465 Mr. Okada next reviewed the proposed FY 2024-25 CIP program by categories: Programs FY 2024-25 Requests (in thousands) and percentage of CIP Program Parks and Recreation Improvements $10,140 (40%) 0 Building Facilities Improvements $6,400 (25%) Bike, Pedestrian, and Traffic Improvements $5,875 (23%) Parking and Garages $400 (2%) Street Resurfacing $2,650 (10%) TOTAL $25,465 Mr. Okada reviewed the proposed Parks and Recreation Improvements for FY 2024-25: Project Description General Fund Measure I Impact Fees Grants Total Funding Request Town Square Public Plaza $3,000 $1,000 $2,500 $500 $7,000 Mills Canyon Slide Repairs $1,700 $1,700 Citywide Playgrounds — Laguna Park $700 $700 BSD Synthetic Turf Replacement Fund $200 $200 Murray Field Synthetic Turf Replacement Fund $150 $150 Mills Canyon Maintenance $100 $100 Playground Replacement Fund $100 $100 City Parks Fencing $50 $50 Playground Resilient Surfacing $50 $50 Athletic Field Renovations Fund $50 $50 Annual Tree Replacement $40 $40 TOTAL $6,140 $1,000 $2,500 $500 $10,140 Councilmember Brownrigg asked if the City should get releases from owners for potential future liability as they undertake work below private properties in Mills Canyon. City Attorney Guina replied in the negative. He stated that with the City taking pro -active measures, the acceptance of the project gives the City design immunity protections that are provided under the Government Code. Vice Mayor Beach discussed Laguna Park and asked if there would be comprehensive renovations on the playground. Parks and Recreation Director Glomstad replied in the affirmative and added that it would be a beach-themed playground. Mayor Colson stated that every few years, she gets asked about installing Magical Bridge playgrounds. She asked if the City considered utilizing these. Parks and Recreation Director Glomstad stated that the City's playgrounds have lots of features and that the Magical Bridge playgrounds take up large spaces. Mr. Okada reviewed the proposed FY 2024-25 building facilities improvements: Project Description General Low Interest Total Funding Fund Loans Request 7 PD ADA and Sally Port Improvements — Phasel $1,200 $1,200 Roof Replacement at PW Corp Yard $500 $500 PD Replacement of Emergency Radio Infrastructure $250 $250 Fire Station 34 HVAC Improvements — Design $200 $200 Fire Station 34 Miscellaneous Improvements $200 $200 Parks Corporation Yard Renovation — Planning $200 $200 EV Chargers at the PW Corp Yard $175 $175 PD Women's Bathroom/Locker Rooms Renovations — Phase 2 — Design $150 $150 Program Management $150 $150 Citywide Minor Building Facilities $100 $100 Police Replacement of Dispatch Consoles $100 $100 ADA Transition Plan $100 $100 Fire Station 35 Planning — Phase 2 — Design $75 $75 Library Garage, Highland Garage, and Corp Yard Solar Panel Project $3,000 $3,000 TOTAL $3,400 $3,000 $6,400 Councilmember Brownrigg discussed the funds going towards CCFD projects. He noted that the station on Rollins Road might need to be improved due to the increase in activity across the highway and in that neighborhood. He asked if this would be done and if the City would be responsible for covering the cost. City Manager Goldman stated that CCFD previously presented its Standards of Cover update to the Council. She explained that the Fire Board would be undertaking a strategic planning process to figure out what needs to be done moving forward. She noted that this would include whether Station 36, which is currently an administrative building, would need to be reactivated as a working station. She stated that in general, the fire stations are owned and maintained by the home agencies. However, she explained that the administrative building benefits the entire department, and therefore costs should be shared across the three cities. Vice Mayor Beach discussed the need to upgrade the Parks Corporation Yard. Mr. Okada reviewed the proposed FY 2024-25 bike, pedestrian, and traffic improvements: Project General Gas Tax Measure Measure Development/ Grants Total Description Fund A I Impact Fees Funding Request Old Bayshore $650 $3,000 $3,650 Highway Design Sidewalk Program $100 $1,000 $1,100 and ADA Improvements 0 Citywide $250 $250 Pedestrian Improvements Citywide Traffic $225 $225 Calming Improvements Broadway Corridor $200 $200 Traffic Signal Interconnect Study Bay Trail $150 $150 Improvements at Airport and Beach Design Floribunda/ $150 $150 Almer/ Bellevue Intersection Design Downtown $150 $150 Broadway Intersection Improvements TOTAL $0 $100 1 $1,125 $1,000 $650 $3,000 $5,875 Mayor Colson asked if there was pricing yet for the Town Square. City Manager Goldman replied in the negative. Mayor Colson asked when this project would go out to bid. Parks and Recreation Director Glomstad replied that the City is hoping to put the project out to bid in August. Vice Mayor Beach asked about the $3.65 million cost for the Old Bayshore Highway Design. DPW Murtuza stated that it is a large project that involves four lanes and is approximately one mile long. He noted that it would include ADA improvements, green landscaping, and more. Councilmember Brownrigg discussed how to prioritize the Old Bayshore Highway project. He asked if the City was boxing itself into prioritizing this project by accepting grants. DPW Murtuza replied in the negative. Mr. Okada next stated that the City is proposing to resurface Parking Lot C with $400,000 from the Parking Fund. Mr. Okada reviewed the proposed list of street resurfacing projects for FY 2024-25 totaling $2,650,000: • Cananea Court — from Cananea Avenue to end 9 • Carmelita Avenue - from California Drive to El Camino Real • Clovelly Lane — from Westmoor Road to end • Donnelly Avenue — Primrose Road to Lorton Avenue • Gilbreth Road — Cowan Road to Mahler Road • Hamilton Lane — Westmoor Road to end • Killarney Lane — Westmoor Road to end • Malcolm Road — Old Bayshore Highway to Gilbreth Road • Meadow Lane — Rosedale Avenue to end • Neuchatel Avenue — Oak Grove Avenue to Wilborough Road • Occidental Avenue — Barriolhet Avenue to Pepper Avenue • Ralston Avenue — Occidental Avenue to Pepper Avenue • Rollins Road —Toyon Drive to Oak Grove Avenue (pavement section repairs only) • Victoria Road — Peninsula Avenue to Burlingame Avenue (pavement section repairs only) Mayor Colson opened the item up for public comment. Manito Velasco urged the City to set aside some funds to mitigate new traffic patterns that will be the result of large infrastructure projects such as the Broadway Grade Separation and the work on El Camino Real. (Comment submitted via publiccomment@burlingame.org). Mayor Colson closed public comment. Councilmember Ortiz stated that he thought the work on Old Bayshore Highway was important due to the City's reliance on TOT and the number of new buildings being designed along the Bayfront. Vice Mayor Beach discussed a potential mitigation fund in order to assist with large projects being undertaken. Councilmember Stevenson thanked staff for the presentation. Councilmember Brownrigg asked about the funding for Rollins Road. DPW Murtuza replied that the City received $3.1 million in grant funds last year from MTC. Mayor Colson thanked staff for their hard work. 7. ADJOURNMENT Mayor Colson adjourned the meeting at 7:57 p.m. Respectfully submitted, /s/ Meaghan Hassel -Shearer, City Clerk 10