City Council

GENERAL FUND MID-YEAR BUDGET UPDATE & 5-YEAR FORECAST CITY COUNCIL NICK PEGUEROS MARCH 11, 2025 CHIEF FINANCIAL OFFICER OBJECTIVE  Consider a Resolution Amending the Fiscal Year 2024- 25 (FY25) Budget  Receive updated General Fund forecast for consideration during the FY26 operating budget deliberations. 2 MID-YEAR BUDGET UPDATE 3 GENERAL FUND $67.12 MILLION ADOPTED BUDGET $0.6 MILLION ESTIMATED SURPLUS Revenues Expenditures • $3.6 million lower: • $4.2 million lower: • Taxes • Personnel • Parking fines • Operating budgets • VLF in-lieu (at risk) 4 PARKING FUND Notes: • FY25: July 1st to Feb 28th • Citation estimates • Personnel & overhead charges • Loan repayment tentative • Operating deficit of $0.02 million; ~2% of revenue 5 BUDGET AMENDMENT REQUESTS 6 5-YEAR FORECAST 7 5-YEAR FORECAST ASSUMPTIONS  Maintain FY25 service levels  Growth factors  Revenue 2-5%  Expenditure 3.5-7%  Incorporate known and anticipated events  Major housing and commercial developments  Measure Q  CityNet sale  No substantial one-time revenues/expenditures 8  GENERAL FUND RESOURCES HISTORICAL $90 • Resources by category $80 • Resources include Transfers in revenues and transfers in $70 Other Revenue • Creation of two SRFs in $60 FY25: RAC and CD Use of Money and $50 Property Fines and Forfeitures $40 Intergovernmental $30 Licenses and Permits $20 Charges for Services $10 Taxes $0 2022 2023 2024 2025 2026 2027 2028 2029 2030 9  GENERAL FUND RESOURCES 5-YEAR FORECAST $90 • Resources by category $80 • Resources include Transfers in revenues and transfers in $70 Other Revenue • Creation of two SRFs in $60 FY25: RAC and CD Use of Money and $50 Property Fines and Forfeitures $40 Intergovernmental $30 Licenses and Permits $20 Charges for Services $10 Taxes $0 2022 2023 2024 2025 2026 2027 2028 2029 2030 10  GENERAL FUND REQUIREMENTS HISTORICAL $90 • Requirements by Activity Type $80 Transfers Out • Requirements include Non-Departmental $70 expenditures and transfers Community Services out $60 Public Works • ISF, Admin OH, UAL $50 changes in FY25 Community Development $40 Fire $30 Police Administrative Services $20 City Attorney $10 City Manager's Office $0 2022 2023 2024 2025 2026 2027 2028 2029 2030 City Council -$10 11  GENERAL FUND REQUIREMENTS 5-YEAR FORECAST $90 • Requirements by Activity Type $80 Transfers Out • Requirements include Non-Departmental $70 expenditures and transfers Community Services out $60 Public Works • ISF, Admin OH, UAL $50 changes in FY25 Community Development $40 Fire $30 Police Administrative Services $20 City Attorney $10 City Manager's Office $0 2022 2023 2024 2025 2026 2027 2028 2029 2030 City Council -$10 12  NET OPERATING REVENUE $6 Resources Over (Under) Requirements • Resources minus Requirements $4 • Structural deficit $2 of increasing over forecast period $0 • 1.8% in FY26 • 5.2% in FY30 -$2 -$4 -$6 13 Recommendation  Adopt a Resolution Amending the Fiscal Year 2024-25 (FY25) Budget 14 QUESTIONS 15 2024 MEASURE Q & 2019 MEASURE G FY26 PROPOSED SPENDING PLANS Nick Pegueros City Council Administrative Services Director & CFO March 11, 2025 AGENDA  Proposed Spending plans  2024 Measure Q General Obligation Bond  2019 Measure G 0.5% Local Sales Tax  Next Steps 2 OBJECTIVE  Provide direction on the Measure G & Q spending plans for the Fiscal Year 2025-26 (FY26) operating and capital improvement program budget. 3 Purpose  FY26 budget development  2024 Measure Q – new funding source for:  Stormwater  Streets  Fire stations  2019 Measure G – funding source for any municipal purpose  Primarily funded street improvements 4 MEASURE Q PROPOSED SPENDING PLAN 5 BOND FUNDED PROJECTS – PROCESS 6 2024 MEASURE Q BALLOT QUESTION Shall City of San Bruno measure be adopted to:  repair deteriorating storm-drains, preventing failure, flooding, water pollution/ sinkholes;  repair potholes/ city streets;  upgrade fire stations, improving emergency response, accommodate modern firefighting/ lifesaving emergency medical equipment, function during earthquakes/ natural disasters; authorizing $102,000,000 in bonds, at a tax rate of 3¢ per $100 of assessed value, while bonds are outstanding, initially generating $3,300,000 annually, without funds for administrators/ cannot be taken by the State of California, with citizen oversight/ independent audits? 7 2024 MEASURE Q ELECTION RESULTS 17,380 VOTES 4,677 27% 12,703 73% Yes No 8 BOND FUNDED PROJECTS – DETERMINING FACTORS  Eligible projects  Storm drains, Fire Station No. 52, Pavement Management Program  Cashflow  85% completion within 3 years of bond issuance  Staff capacity  Existing staff capacity & adopted Capital Improvement Program 9 FY26 Proposed Measure Q Budget 10 Forward-Looking CIP Project Funding 11 MEASURE G PROPOSED SPENDING PLAN 12 2019 MEASURE G BALLOT QUESTION Shall the City of San Bruno's measure to fund city services/facilities such as:  neighborhood police patrols;  fire prevention services;'  urban wildfire protection;  crime suppression/investigation;  pothole/street repair;  increasing parking supply;  upgrading parks/other city services/facilities;  expanding services supporting local businesses; by levying a 1/2¢ sales tax, providing approximately $4,000,000 annually, until ended by voters, with independent citizens' oversight, no money for Sacramento, all funds spent locally, be adopted? 13 2019 MEASURE G ELECTION RESULTS 7,591VOTES 2,914 38% 4,677 62% Yes No 14 2019 Measure G  General tax – may be used for any municipal purpose at discretion of the City Council  Estimate: $3.5 to $4.0 million per year ½ cent sales tax  Appropriations since 2019 Category 5-year total % of ($million) total Pavement Management Program $15.0 78% Maintain services during COVID-19 Emergency 2.0 10 Streetlight, sidewalks, signage 1.5 8 Wildfire mitigation 0.4 2 Public safety vehicles/facilities 0.3 2 $19.1 100% 15 Revenue Measure Oversight Committee (RMOC) 2/13/25 RMOC Meeting “…provide feedback to the 3/11/25 Staff proposed City Council FY26 spending Plan regarding the staff RMOC input to City to RMOC recommended Council allocation of the tax revenue as part of the budget process” 16 FY26 Proposed Measure G Budget 17 Forward-Looking CIP Project Funding 18 Vote & Discussion  3-2 in concurrence with the recommended spending plan  Caveats  Voter intent for Measure G  Maintain robust PMP funding  Measure Q or other source 19 Next Steps 20 City Council Budgetary Actions and Direction • Measure Q reimbursement resolution March 25th • CIP Preview • Financial policies update • FY26 Priority Initiatives Scoping April 8th • Master Fee Schedule April 22nd • General Fund budget preview • 6/10 - Budget public hearing June • 6/24 – Budget adoption 21  FY26 Recommended Budgets Measure G Measure Q 22 QUESTIONS 23