HomeMy WebLinkAboutMin - CC - 2024.05.22 (Budget Study Session)CITY 0
BURLINGAME
BURLINGAME CITY COUNCIL
Approved Minutes
FY 2024-25 Budget Study Session on May 22, 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 7:02 p.m.
2. PLEDGE OF ALLEGIANCE TO THE FLAG
The pledge of allegiance was led by Desiree Thayer.
3. ROLL CALL
MEMBERS PRESENT: Beach, Brownrigg, Colson, Pappajohn, Stevenson
MEMBERS ABSENT: None
There were no requests.
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There were no public comments.
a. DISCUSSION OF THE CITY'S FISCAL YEAR 2024-25 BUDGET; ADOPTION OF RESOLUTION TO
APPROVE PERSONNEL CLASSIFICATION AND POSITION CHANGES AND ADOPTION OF RESOLUTION
TO AMEND THE FY 2023-24 OPERATING BUDGET
Finance Director Yu -Scott began with an update on the FY 2023-24 General Fund projection:
General Fund (in thousands)
Adopted
Mid -Year
Amended
Total
Budget
Revised Budget
Budget
Amended
Changes ($)
Total Revenue
$80,510
$81,930
$83,642
$1,712
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Expenditures
• Department Expenditures
($74,519)
($79,487)
($79,582)
($95)
• Transfers to Capital Projects
($6,620)
($7,084)
($8,564)
($1,480)
• Other Transfer In (Out)
($1,757)
($1,752)
($1,752)
0
Total Expenditures
($82,896)
($88,323)
($89,898)
($1,575)
Net Operating Surplus (Deficit)
($2,386)
($6,393)
($6,256)
$137
Finance Director Yu -Scott reviewed the proposed FY 2024-25 General Fund revenues
Revenue Category
Amount
Property Tax
$31,417,115
Sales and Use Tax
$17,493,660
Transient Occupancy Tax
$22,666,000
Other Taxes
• Franchise Tax
• Business Tax
• Real Property Transfer Tax
• State HOPTR
$1,965,000
$1,700,000
$500,000
$64,000
Licenses and Permits
$82,600
Fines, Forfeitures, and Penalties
$678,000
Use of Money and Property
$995,000
Charges for Services
$7,314,572
Other Revenue
$387,000
State Subventions
$215,000
Interest Income
$1,850,000
Total General Fund Revenues
$87,327,947
Finance Director Yu -Scott stated that staff is projecting a 4.4% increase in revenues over the current fiscal
year.
Finance Director Yu -Scott reviewed a bar chart that depicted the upward trend of property tax since 2015.
She noted that in the most recent fiscal years beginning in FY 2022-23, property tax growth had started to
level out. She stated that the main challenge was the State taking away the vehicle in -lieu fee ("VLF"). She
added that VLF will continue to be underfunded.
Finance Director Yu -Scott reviewed a bar chart depicting sales tax revenue since FY 2015-16. She noted
that impact of inflation on sales tax.
Finance Director Yu -Scott reviewed a bar chart depicting transient occupancy tax since FY 2015-16. She
noted the drop in TOT due to COVD. She stated that the projected TOT for FY 2024-25 is $22.7 million.
Finance Director Yu -Scott reviewed the proposed FY 2024-25 General Fund expenditures:
Expenditure Category
Amount
General Administration
$8,736,979
Public Safety
• Fire and Disaster Preparedness
$15,778,139
• Police and Dispatch
$20,973,082
• Parking Enforcement
$792,243
Public Works
$9,881,445
Community Development
$2,846,092
Leisure and Neighborhood Services
• Aquatics Center
$547,000
• Library
$6,772,485
• Parks and Tree Maintenance
$9,454,276
• Recreation
$5,251,134
Total General Fund Expenditures
$81,032,875
Finance Director Yu -Scott stated that the proposed General Fund expenditures for FY 2024-25 result in a
1.8% increase from the FY 2023-24 expenditures. She noted that this is due to the new MOUs with the
labor unions, insurance premium, and the vehicle replacement fund.
Finance Director Yu -Scott reviewed the projected FY 2024-25 General Fund balance assignments:
General Fund (in thousands)
FY 2022-23
Actual
FY 2023-24
Adopted Budget
FY 2023-24
Amended
Budget
FY 2024-25
Proposed
Budget
Economic Stability Reserve
$18,118
$19,322
$20,074
$20,959
Catastrophic Reserve
$2,000
$2,000
$2,000
$2,000
Contingency Reserve
$500
$500
$500
$500
Subtotal, Assigned Fund
Balance
$20,618
$21,822
$22,574
$23,459
Add: Restricted for Pension
Trust Fund
$17,564
$17,366
$18,432
$18,958
Add: Unassigned Fund Balance
$16,811
$2,397
$7,731
$86
Total: Ending Fund Balance
(Projected)
$54,993
$41,585
$48,737
$42,503
Councilmember Brownrigg discussed the proposed unassigned fund balance of $86,000. He noted that in
the adopted budget for FY 2023-24, the City projected $2.4 million in unassigned fund balance, but the
amended budget had an increase to $7.7 million in unassigned funds. He asked what accounted for this
increase. Finance Director Yu -Scott replied that TOT did better than expected, and the State gave the City
$1.5 million for VLF. She added that all of the departments had savings including vacancy savings.
Finance Director Yu -Scott reviewed the proposed FY 2024-25 budget summary for the other funds:
Other Funds (in thousands)
FY 2023-24 Amended Budget
FY 2024-25 Proposed Budget
Capital Projects
$32,959
$35,110
Financing Authority
$6,210
$6,239
Water Enterprise
$16,961
$17,740
Sewer Enterprise
$12,619
$12,939
Parking Enterprise
$1,115
$1,254
Solid Waste Enterprise
$759
$831
Landfill Closure
$432
$347
Building Enterprise
$3,985
$4,070
Special Revenue Funds
$218
$331
Internal Service Funds
$674
($309)
TOTAL
$75,932
$78,552
Finance Director Yu -Scott reviewed the breakdown of the proposed FY 2024-25 Citywide budget:
• General Fund - $81 million
• Capital Improvements - $35.1 million
• Utilities (Water and Sewer) - $30.7 million
• Other Funds - $12.8 million
TOTAL - $159.6 million
Finance Director Yu -Scott reviewed the proposed personnel classification position changes:
• Community Development — Building Division — add one management analyst position
• Parks and Recreation — Parks Division — add one parks maintenance worker position
She noted that the Community Development position is funded by the Building Enterprise Fund.
Councilmember Stevenson asked how staff determined the TOT projections. Finance Director Yu -Scott
replied that she works closely with The San Francisco Peninsula and reviews the monthly numbers.
Mayor Colson stated that hopefully Topgolf will help increase TOT.
City Manager Goldman stated that the City gets TOT revenues monthly, which enables staff to do pretty
precise calculations of the projected growth.
Vice Mayor Beach discussed the projected unassigned balance for FY 2024-25. She asked about staff's
comfort level with that number being $86,000. Finance Director Yu -Scott replied that a lot of variables
affect the unassigned fund balance including the Capital Improvement Program. She noted that staff
worked hard to determine which projects are necessary and what could be scaled back or delayed. She
discussed the need to review policies such as decreasing funding to the Economic Stability Reserve or
Section 115 Trust Fund.
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City Manager Goldman stated that the expenditure level set by the budget is the maximum that each
department can spend. She noted that while departments might spend the maximum in certain categories,
they don't spend it in all. Therefore, she explained, there are always savings.
Councilmember Brownrigg stated that he is uncomfortable with the projected unassigned fund balance. He
noted that unless TOT bounces back, he is concerned that the City might need to re-evaluate how much of
the General Fund is put annually into CIP.
City Manager Goldman discussed the funding that was necessary over the past few years for tree removals
as a result of storms, which helps explain some of the decrease in the unassigned fund balance.
Mayor Colson asked if she was correct that the City is putting $500,000 a year in the Section 115 Trust.
Finance Director Yu -Scott replied in the affirmative.
Mayor Colson stated that the City didn't need to put $500,000 in as the flattening of the rate wouldn't
occur until FY 2027-28, and the City currently has $20 million in the Section 115 Trust. She noted that this
would give the City a little more wiggle room in the unassigned fund balance.
Mayor Colson opened the item up for public comment. No one spoke.
Vice Mayor Beach made a motion to adopt Resolution Number 074-2024; seconded by Councilmember
Stevenson. The motion passed unanimously by roll call vote, 5-0.
Councilmember Brownrigg made a motion to adopt Resolution Number 075-2024; seconded by
Councilmember Pappajohn. The motion passed unanimously by roll call vote, 5-0.
Mayor Colson congratulated Finance Director Yu -Scott on a very comprehensive and clear staff report
regarding the proposed budget and five-year forecast.
Finance Director Yu -Scott reviewed the projected General Fund Five -Year Forecast:
General Fund (in
FY 2023-24
FY 2024-25
FY2025-26
FY 2026-27
FY 2027-28
FY 2028-29
thousands)
Amended
Proposed
Forecast
Forecast
Forecast
Forecast
Total Revenues
$83,642
$87,328
$91,674
$95,170
$98,825
$102,658
Total Expenditures
($79,582)
($81,033)
($84,573)
($87,774)
($91,000)
($94,531)
Revenue Over
(Under) Expenditures
$4,060
$6,295
$7,101
$7,396
$7,825
$8,127
Transfer to Capital
Project Fund
($8,564)
($10,840)
($10,720)
($7,620)
($6,920)
($5,620)
Transfer to Debt
Service Fund
($3,623)
($3,650)
($3,122)
($3,105)
($3,104)
($3,112)
Other Transfers In
(Out)
$1,871
$1,961
$2,030
$2,100
$2,174
$2,252
Change in Fund
Balance before
Adjustment
($6,256)
($6,234)
($4,711)
($1,229)
(25)
$1,647
Adjustment -
Transfer to Pension
Trust
($868)
($526)
($500)
($500)
($500)
($500)
Net Surplus/(Deficit)
($7,124)
($6,760)
($5,211)
($1,729)
($525)
$1,147
Finance Director Yu -Scott reviewed the City's past contributions to the Capital Improvement Program along
with projected contributions. She noted that the upcoming two fiscal years will see large contributions,
and then after that the contributions will decrease.
Finance Director Yu -Scott reviewed the General Fund Five -Year Forecast for Fund Balance:
Fund Balance (in
FY 2023-24
FY 2024-25
FY 2025-26
FY 2026-27
FY 2027-28
FY 2028-29
thousands)
Amended
Proposed
Forecast
Forecast
Forecast
Forecast
General Fund
Beginning Balance
$54,993
$48,737
$42,503
$37,791
$36,563
$36,538
General Fund Ending
Balance
$48,737
$42,503
$37,791
$36,563
$36,538
$38,185
Assigned Balance:
$22,574
$23,459
$24,502
$25,341
$26,218
$27,138
Economic Stability
Reserve at 24% of
Revenue
$20,074
$20,959
$22,002
$22,841
$23,718
$24,638
Catastrophic Reserve
($2.0 million)
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
Contingency Reserve
($0.5 million)
$500
$500
$500
$500
$500
$500
PARS Restricted Cash
$18,432
$18,958
$19,458
$19,958
$20,458
$20,958
Unassigned Fund
Balance
$7,731
$86
($6,169)
($8,736)
($10,138)
($9,911)
Mayor Colson and Councilmember Brownrigg discussed the City's contribution to the Economic Stability
Reserve at 24% of revenue. They noted that during the pandemic, the City did not need to tap into the
Reserve and wondered if 24% was the correct number.
Councilmember Brownrigg suggested decreasing the percentage allotted to the Economic Stability Reserve
to 20% instead of 24%.
Vice Mayor Beach suggested re-evaluating the percentages and allotments for the different reserves.
Mayor Colson opened the item up for public comment.
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Joe Baylock discussed the need for increased traffic enforcement through the approval of an additional
police officer position. (Comment submitted via publiccomment@burlingame.org).
b. CITY COUNCIL REVIEW OF DRAFT FY 2024-25 CAPITAL IMPROVEMENT PROGRAM
Senior Civil Engineer Okada began with a summary of the proposed Capital Improvement Program for FY
2024-25:
Program Category
FY 2024-25 Requests (in
thousands)
Parks and Recreation Improvements
$7,940
Building Facilities Improvements
$6,400
Bicycle, Pedestrian, and Traffic Improvements
$6,355
Parking Enterprise Fund Projects
$400
Street Resurfacing Program
$2,650
Water Enterprise Fund Projects
$5,000
Sewer System Enterprise Fund Projects
$4,865
Storm Drainage System Projects
$1,500
Total
$35,110
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
$3,700
$1,000
$1,300
$500
$6,500
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
$5,140
$1,000
$1,300
$500
$7,940
Mr. Okada reviewed the proposed Building Facilities Improvements for FY 2024-25:
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Project Description
General Fund
Low Interest
Impact Fees
Total Funding
Loans
Request
PD ADA and Sally Port Improvements
$900
$300
$1,200
— Phase 1
Roof Replacement at PW Corp Yard
$500
$500
PD Replacement of Emergency Radio
$250
$250
Infrastructure
Fire station 34 HVAC Improvements —
$200
$200
Design
Fire Station 34 Miscellaneous
$200
$200
Improvements
Parks Corporation Yard Renovation —
$200
$200
Planning
EV Chargers at the PW Corp Yard
$175
$175
PD Women's Bathroom/Locker
$150
$150
Rooms Renovations — Phase 2 —
Design
Program Management
$150
$150
Citywide Minor Building Facilities
$100
$100
Police Replacement of Dispatch
$100
$100
Consoles
ADA Transition Plan
$100
$100
Fire Station 35 Planning — Phase 2 —
$75
$75
Design
Library Garage, Highland Garage, and
$3,000
$3,000
Corp Yard Solar Panel Project
TOTAL
$2,700
$3,000
$700
$6,400
Councilmember Brownrigg asked about the $3 million low interest loan and whether it is was deducted
against the CIP for one year or amortized over time. DPW Murtuza replied that it is a loan that the City will
pay off in 30 years with a 1.9% interest rate.
Councilmember Brownrigg asked if the $10.8 from the General Fund includes the $3 million loan. DPW
Murtuza replied in the negative.
Mayor Colson stated that PCE has grants that the City could apply for to subsidize EV charging stations.
DPW Murtuza replied in the affirmative.
Mr. Okada reviewed the Bicycle, Pedestrian and Traffic Improvements for FY 2024-25:
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Project Description
General
Gas Tax
Measure
Measure
Dev/Impact
Grants
Total
Fund
A
I
Fees
Funding
Request
Old Bayshore Highway
$650
$3,000
$3,650
Design
Sidewalk Program and ADA
$100
$1,000
$1,100
Improvements
Vision Zero
$480
$480
Citywide Pedestrian
$250
$250
Improvements (Including
RRFBs)
Citywide Traffic Calming
$225
$225
Improvements
Broadway Corridor Traffic
$200
$200
Signal Interconnect Study
Bay Trail Improvements at
$150
$150
Airport and Beach Design
Floribunda/Almer/Bellevue
$150
$150
Intersection Design
Downtown Broadway
$150
$150
Intersection Improvements
TOTAL
$0
$100
$1,125
$1,000
$650
$3,480
$6,355
Mr. Okada stated that for FY 2024-25, staff is proposing to use $400,000 from the City's parking fund to
resurface Parking Lot C.
Mr. Okada reviewed the proposed Street Resurfacing Projects for FY 2024-25:
• Cananea Court — from Cananea Avenue to end
• 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
• Humboldt Road — Rollins Road to Peninsula Avenue
• 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)
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He noted that the total cost for the FY 2024-25 street resurfacing program is $2,650,000.
Mr. Okada reviewed the proposed Water System Capital Improvement Program for FY 2024-25:
Project Description
Total Funding
Request
Burlingame Terrace — Easton Addition and Burlingame Terrace Phase 1
$3,125
Roof Replacement at Corp Yard (Water Enterprise Share)
$500
West Burlingame Terrace — South ECR WMR Phase 4
$450
Advanced Metering Infrastructure (AMI)
$300
EV Chargers at Corp Yard (Water Enterprise Share)
$175
Highline Project
$100
Sisters of Mercy Pump Station
$100
Water Meter Replacement Program
$100
Water System Valve Replacements
$100
Regional Water Supply Studies/Modeling
$50
TOTAL
$5,000
Councilmember Brownrigg asked if the Advanced Metering Infrastructure ("AMI") were wireless meters.
Mr. Okada replied that the water meters will collect the data in real time. He added that not all homes will
have these wireless meters; it will need to be done in a phased approach.
Councilmember Brownrigg stated that this will assist with individuals that are a way for a few months when
their toilet is running in order to alert an individual right away.
Mr. Okada reviewed the proposed Sewer System Capital Improvement Program for FY 2024-25:
Project Description
Total Funding
Request
WWTP Headworks Channel Repair
$3,100
Citywide Repairs Identified by Smoke Testing of Sewer Mains
$500
Corp Yard Roof Replacement (Sewer Enterprise Share)
$500
WWTP Digester Equipment Building, Digester No. 2, and Sludge Storage Tank
Building Design
$250
Corp Yard EV Chargers (Sewer Enterprise Share)
$175
1000 Rollins Road Lift Station Pumps Upgrade (#1, #2, #5, #6)
$105
WWTP Biosolids Trailer Yard Jockey
$100
1000 Rollins Road Lift Station Manual Bar Screen Jet Wash System Upgrade
$70
WWTP Final Effluent Pumps Upgrade
$65
TOTAL
$4,865
Mr. Okada reviewed the proposed Storm Drainage System Capital Improvement Program for FY 2024-25:
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Project Description
Total Funding
Request
Neighborhood Storm Drain Project #16
$1,150
Neighborhood Storm Drain Project $15
$350
TOTAL
$1,500
Mr. Okada reviewed the proposed funding sources for the FY 2024-25 Capital Improvement Program:
Funding Source
FY 2024-25 Requests (in thousands)
General Fund
$7,840
Measure I ($1M sidewalks, $1M streets, and $1M
town square)
$3,000
Gas Tax, Measure A, and SB 1
$2,875
Parking Enterprise Fund
$400
Development/Impact Fees
$2,650
Grants/Loans
$6,980
Water System Enterprise Fund
$5,000
Sewer System Enterprise Fund
$4,865
Storm Drain Fees
$1,500
TOTAL
$35,110
Vice Mayor Beach stated that so much of the proposed FY 2024-25 Capital Improvement Program is good
commonsense infrastructure. She noted that the biggest line item in the program is the Town Square with
$3.7 million from the General Fund. She asked if there was any part of the project that could be phased or
delayed. Parks and Recreation Director Glomstad stated that the fountain and bathroom are the largest
costs associated with the project.
Mayor Colson stated that with the assistance of the Parks and Recreation Foundation, funds could be raised
by asking individuals to donate in exchange for their names engraved on large pavers.
Councilmember Brownrigg stated that the project hasn't been put out to bid yet and thought an architect
might be able to value engineer this project down. He noted that he thought this conversation would be
better served after getting an understanding of the actual cost.
Parks and Recreation Director Glomstad stated that the project could be deferred. She also discussed
putting the bathroom infrastructure in place without the bathroom and phasing that in later. She added
that it would be helpful if the Council gave staff a target number to decrease the project by.
Mayor Colson stated that she concurred with Councilmember Brownrigg that the project should first go out
to bid to understand the true cost.
Vice Mayor Beach asked about the developer's contribution of $2 million. City Manager Goldman replied
that the project changed since the developer's original offer. She noted that the Town Square became a lot
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bigger, which has increased the cost to approximately $10 million. She added that the City has received $1
million from the State, $750,000 in federal grants, and $500,000 from the County.
Mayor Colson discussed restaurants moving into the new 220 Park building and trying to time the
construction of the Town Square.
Mayor Colson stated her recommendation for the proposed FY 2024-25 budget was to postpone the
contribution to the Section 115 Fund.
The Council concurred.
Councilmember Brownrigg stated that he would like to examine taking funds out of the Economic Stability
Reserve as he wasn't comfortable with the minimal amount of unassigned General Fund balance. City
Manager Goldman replied that it is always available. She added that staff would come to Council if it was
necessary to utilize funds from the Economic Stability Reserve.
Mayor Colson discussed funds that will be needed in the future for sea level rise.
The Council thanked staff for their presentations and hard work.
7. ADJOURNMENT
Mayor Colson adjourned the meeting at 8:50 p.m.
Respectfully submitted,
/s/
Meaghan Hassel -Shearer
City Clerk
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