City Council

Celebrating Parks & Rec Month Recreation RAC Parks Seniors Recreation Recreation  Thank You A W a r m W el com e Interim Police Chief Police Chief Susan Manheimer Matt Lethin SEWER SERVICE CHARGE COLLECTIONS ON THE PROPERTY TAX ROLL Nick Pegueros City Council Administrative Services Director / CFO June 24, 2025 OBJECTIVE  Conduct Public Hearing on collection of the Fiscal Year 2025-26 (FY26) sewer service charges with property taxes  Adopt a Resolution ordering the collection of sewer charges for FY26 2 BACKGROUND  Resolution No. 2023-76 adopting 5-year sewer rates  Ordinance 1938 adopted June 27, 2023 to collect sewer charges on the tax roll  City Council priority initiative – operational efficiencies  Guaranteed collections  Limits customer utility bills only to water  Public Hearing Notice on June 10, 2025 and June 18, 2025 3 Sewer Charges  2025-26 Sewer Service Charges  Sewer Service Charge = $19.59 million  July 1, 2025 rates  2025 average water consumption in winter months (Jan-Apr)  Income qualified rate reductions applied  Adjustments for suspected water leaks  Excludes master-metered homeowners’ associations with greater than 100 parcels  2024-25 Delinquencies = $12,470  Report posted online listed by Assessor’s Parcel Number and site address 4 REMAINING TIMELINE 5 RECOMMENDATION  Conduct Public Hearing on collection of the Fiscal Year 2025-26 (FY26) sewer service charges and 2024-25 (FY25) delinquent sewer service charges with property taxes  Adopt a Resolution ordering the collection for FY26 6 QUESTIONS 7 Capital Improvement Program Public Hearing & Fiscal Year 2025-26 Budget Adoption June 24, 2025 AGENDA I. Objective II. Capital Improvement Program (CIP) Budget Overview III. Budget Overview IV. Resolutions V. Recommendation VI. Questions 2 OBJECTIVE • Receive presentation and hold public hearing on the Fiscal Year 2025-26 (FY26) Capital Improvement Program • Adopt enabling resolutions 3 CIP OVERVIEW 4 FY26 CIP Budget Summary by Program (in millions) Progra m FY24-25 Ca rryove r FY25-26 Ne w Re que s ts Re c om m e nde d Budge t Facilities $6.11 $3.08 $9.19 Parks 7.33 2.08 9.40 Stormwater 3.93 2.40 6.33 Streets 7.19 15.01 22.20 Technology 2.11 - 2.11 Wastewater 28.89 7.5 36.39 Water 43.12 6.46 49.58 Gra nd tota l $98.69 $36.52 $135.21 5 CIP Summary CIP Budget $ millions FY24-25 Adopted budget $169.41 Est. actual expenditures (inception to date) 70.73 Est. Carryover appropriations $98.69 FY25-26 Project requests for new funds 36.52 (16 new projects, 13 existing projects) FY25-26 New funds + carryovers $135.21 6 OPERATING BUDGET OVERVIEW 7 FY26 Operating Budget Overview • $287 million $291 million All Funds • 49 Funds • 287 employees • Balanced budget General Fund • $68.8 million • 188 employees • $135.21 million total Capital • 118 projects Improvements • $15.49 million for street paving and sidewalks 8 FY26 Budget Changes Since 6/10/25 • Removal of Residential Parking Permit Program Assessment and reallocation of funds to:  Installation of lighting along two paths for Diamond 2 and the overflow parking lot near the Recreation and Aquatic Center  Repair of a downtown light at a San Mateo Avenue parking lot  Chamber of Commerce style events in San Bruno through the South San Francisco Chamber of Commerce • Postponement of Regulated Output Streetlight Replacement Phase 2A depending on State in-lieu VLF revenues • Inclusion of operating and enterprise budget vehicle replacements ($4.4 million, 43% of which is enterprise) 9 ADOPTING THE FY26 APPROPRIATIONS LIMIT 10 Adopting the FY26 Appropriations Limit • AKA Gann Limit • FY25 limit: $55.31 million • FY26 limit: $59.03 million $46.73 million is subject to the limit Proposed budget is $12.30 million below the limit (-20.84%) 11 ENABLING ACTIONS 12 FY26 Enabling Resolutions • Resolution adopting the FY26 Capital Improvement Program and Operating Budget • Resolution adopting the FY26 Appropriations Limit 13 RECOMMENDATION • Hold public hearing on the Fiscal Year 2025-26 (FY26) Capital Improvement Program • Adopt enabling resolutions for FY26 14 QUESTIONS? 15 TONIGHT’S REMAINING QUESTIONS Discuss requested paid parking program changes submitted by Councilmember Alvarez: • 1. Include a $0.50 rate for off-street parking lot spaces if using coins and include pass through of transaction fee for credit card payment; and/or • 2. Remove paid parking on El Camino Real; remove the associated 21 kiosks, keep the 2- hour parking limit. 1