1 BURLINGAME CITY COUNCIL
Approved Minutes
FY 2022-23 Mid-Year Budget Study Session on March 15, 2023
1. CALL TO ORDER
A duly noticed meeting of the Burlingame City Council was held on the above date in person and via Zoom Webinar at 6:30 p.m.
2. PLEDGE OF ALLEGIANCE TO THE FLAG
The pledge of allegiance was led by DPW Murtuza.
3. ROLL CALL
MEMBERS PRESENT: Beach, Brownrigg, Colson, Ortiz, Stevenson MEMBERS ABSENT: None
4. PUBLIC COMMENTS, NON-AGENDA
There were no public comments.
5. STAFF REPORTS AND COMMUNICATIONS
a. ADOPTION OF A RESOLUTION AMENDING THE FY 2022-23 OPERATING AND CAPITAL BUDGET TO
REFLECT THE RECOMMENDED MID-YEAR ADJUSTMENTS AND ADOPTION OF A RESOLUTION
AUTHORIZING POSITION AMENDMENTS
Finance Director Yu-Scott stated that on June 6, 2022, the City Council adopted the $129.11 million FY 2022-23 Operating and Capital Improvement Budget. She then reviewed the breakdown of this budget:
• General Fund - $67.60 million
• Capital improvements - $21.91 million
• Utilities (water and sewer) - $27.75 million
• Other funds - $11.85 million
• TOTAL - $129.11 million
Finance Director Yu-Scott reviewed the following chart:
2 General Fund FY 2022-23
Total Resources $70.63 million
Total Requirements $75.79 million
Resources (Under Requirements) ($5.16 million)
She stated that the City entered FY 2022-23 with a deficit of $5.16 million, which was funded by reserves.
Finance Director Yu-Scott stated that the General Fund revenues for FY 2022-23 of $70.63 million were used to cover the General Fund expenditures of $67.60 million. She discussed the following transfers from the General Fund:
• Support capital improvements - $5.19 million
• Debit service obligations - $3.60 million
• Cost recovery - $1.85 million
• Contribution to Pension Trust Fund - $1.25 million
She stated that after the transfers, the City was left with a net deficit of $5.16 million.
Finance Director Yu-Scott reviewed a chart of the projected revenues for all the General Fund sources in FY 2022-23. She stated that since the adopted budget, the projections for FY 2022-23 have increased by 6.9%.
Finance Director Yu-Scott reviewed the three main revenue sources for the City:
• Property tax – for FY 2022-23 is expected to be $1.2 million (or 4.1%) more than the adopted budget due to
o ERAF Refund - $89,000 better than budgeted
o Property Tax in Lieu of VLF is $1.1 million more than budgeted • Sales and Use Tax – this revenue source has recovered more than anticipated with an upward adjustment of $352,000 ($161,000 from Measure I)
• Transient Occupancy Tax (TOT) – is expected to be nearly $2.8 million (or 21.2%) more than the adopted budget
She noted that these three sources make up approximately 83% of the City’s revenue.
Finance Director Yu-Scott reviewed a bar chart that depicted the City’s TOT revenue by month for FY 2018- 19 through the projected FY 2022-23. She noted that while the City’s TOT revenue has not recovered to the FY 2018-19 level (the last full year pre-pandemic), it has made a rebound.
Finance Director Yu-Scott reviewed the revenue amendments for the FY 2022-23 General Fund:
General Fund FY 2022-23 Amendments
Property Tax $1,154,500
Sales and Use Tax $352,000
3 Transient Occupancy Tax $2,750,000
Other Taxes – Franchise Tax $91,500
Other Taxes – Property Transfer Tax ($300,000)
Charges for Services $778,000
Other Revenue $23,000
State Subventions $10,000
TOTAL $4,859,000
Finance Director Yu-Scott reviewed a bar chart depicting the City’s General Fund Revenues since FY 2017-
18. She noted that the City’s General Fund Revenues were $84.5 million in FY 2018-19 and are projected to be $75.5 million in FY 2022-23.
Finance Director Yu-Scott reviewed the expenditure amendments for the FY 2022-23 General Fund:
General Fund FY 2022-23 Amendments
General Government $40,166
Public Safety $419,356
Public Works $87,823
Community Development $301,397
Leisure and Culture $2,413,275
TOTAL $3,262,017
Finance Director Yu-Scott stated that based on the new projections for FY 2022-23, the City has a net operating deficit of $2.6 million before the transfer of $1.25 million to the Pension Trust Fund.
Finance Director Yu-Scott reviewed the General Fund balance assignments for the City:
FY 2020-21 Actuals FY 2021-22 Actuals FY 2022-23
Adopted Budget
FY 2022-23 New
Projection
Economic Stability
Reserve
$14,356,000 $16,441,000 $16,952,000 $18,118,000
Catastrophic
Reserve
$2,000,000 $2,000,000 $2,000,000 $2,000,000
Contingency
Reserve
$500,000 $500,000 $500,000 $500,000
Subtotal Assigned
Fund Balance
$16,856,000 $18,941,000 $19,452,000 $20,618,000
Add: Restricted for
Pension Trust
Fund (PARS)
$15,723,356 $15,251,760 $18,825,956 $16,502,360
Add: Unassigned
Fund Balance
$12,627,703 $13,201,060 $583,976 $7,650,231
4 TOTAL Ending
Fund Balance
$45,207,059 $47,393,820 $38,861,932 $44,770,591
Mayor Brownrigg asked where the funds are kept for the Broadway Grade Separation. Finance Director Yu- Scott replied that the funds are being set aside for the Broadway Grade Separation in the Capital Reserves.
Mayor Brownrigg asked about the additional costs that increased the expenditures for the City. Finance Director Yu-Scott stated that a large part of the cost is due to the tree settlement. She added that the City also had to make an additional payment to the OPEB fund due to vacancies.
Vice Mayor Colson asked if she was correct that the Economic Stability Reserve is funded at 24% of the projected operating revenue. Finance Director Yu-Scott replied in the affirmative.
Finance Director Yu-Scott reviewed the revenue amendments for other funds in FY 2022-23:
Other Fund FY 2022-23 Amendments
Gas Tax – Highway User’s Tax ($64,100)
State Grant Fund $140,000
Water Enterprise Fund $36,000
Parking Enterprise $59,000
Building Enterprise $1,043,120
General Liability Insurance Fund $1,500,000
OPEB Internal Services Fund $400,000
TOTAL $3,114,020
Finance Director Yu-Scott reviewed the expenditure amendments for other funds in FY 2022-23:
Other Fund FY 2022-23 Amendments
State Grant Fund $140,000
Housing Fund $24,500
Water Enterprise Fund $219,109
Sewer Enterprise Fund $9,020
Parking Enterprise Fund $72,306
Solid Waste Enterprise Fund $40,908
Landfill Fund $654
Building Enterprise Fund $825,620
Facilities Services Fund $103,543
Fleet/Equipment Service Fund $3,970
General Liability Insurance Fund $1,517,060
Information Technology Services Fund $1,986
TOTAL $2,958,676
5 Councilmember Ortiz asked if the approximately $1.5 million payment to the General Liability Insurance Fund was a one-time payment. Finance Director Yu-Scott stated that there would be a few more payments that would need to be paid.
Finance Director Yu-Scott reviewed the transfer in and transfer out amendments for FY 2022-23:
Transfers FY 2022-23 Amendments
Transfer Out from General Fund ($5,000)
Transfer In to Special Revenue Fund
Park Donation and Replacement Project CIP Project
Number 9560
$5,000
Finance Director Yu-Scott reviewed the proposed personnel classification and position changes in the mid- year budget:
• Reclassification of two Parks Maintenance Worker positions to two Tree Maintenance Worker positions
• Reclassification of one Parks Maintenance Worker to one Irrigation Repair Specialist position
Mayor Brownrigg opened the item up for public comment. No one spoke.
Councilmember Beach thanked Finance Director Yu-Scott for her report.
Councilmember Beach made a motion to adopt Resolution Number 025-2023; seconded by Councilmember Ortiz. The motion passed unanimously by roll call vote, 5-0.
Councilmember Ortiz made a motion to adopt Resolution Number 026-2023; seconded by Vice Mayor Colson. The motion passed unanimously by roll call vote, 5-0.
Finance Director Yu-Scott next reviewed the City’s five-year financial forecast. She began by discussing the breakdown of the General Fund’s revenue sources for the FY 2022-23:
• Property Tax – 39%
• Sales and Use Tax – 23.1%
• Transient Occupancy Tax – 20.8%
• Other Revenue – 17%
She noted that while TOT used to be the largest source of revenue for the City, it is now the third largest.
She then showed a bar chart that depicted how the different sources of revenue changed over the past six years.
Finance Director Yu-Scott discussed the City’s projected property tax over the next five years. She stated that the City is predicting an average year growth of 4% to 5%.
Finance Director Yu-Scott then reviewed the City’s sales tax assumptions over the next five years:
6 • FY 2022-23 new projection - $17,468,000
• FY 2023-24 forecast - $17,458,000
• FY 2024-25 forecast - $17,919,000
• FY 2025-26 forecast - $18,277,000
• FY 2026-27 forecast - $18,643,000
• FY 2027-28 forecast - $19,016,000
Finance Director Yu-Scott reviewed the City’s TOT assumptions for the next five years:
• FY 2022-23 new projection - $15,725,000
• FY 2023-24 forecast - $17,298,000
• FY 2024-25 forecast - $20,758,000
• FY 2025-26 forecast - $22,211,000
• FY 2026-27 forecast - $23,322,000
• FY 2027-28 forecast - $24,488,000
Finance Director Yu-Scott reviewed the City’s General Fund revenue forecast for the next five years:
• FY 2022-23 new projection - $75,492,225
• FY 2023-24 forecast - $80,465,800
• FY 2024-25 forecast - $85,846,850
• FY 2025-26 forecast - $89,321,680
• FY 2026-27 forecast - $92,631,560
• FY 2027-28 forecast - $96,152,340
She noted that an economic recession was not included in the predictions.
Councilmember Beach asked if the ERAF refund was figured into the property tax projections. Finance Director Yu-Scott replied in the affirmative.
Finance Director Yu-Scott reviewed the City’s expenditure forecast for the next five years:
• FY 2022-23 new projection - $71,178,930
• FY 2023-24 forecast - $73,829,709
• FY 2024-25 forecast - $76,100,029
• FY 2025-26 forecast - $78,760,029
• FY 2026-27 forecast - $81,540,029
• FY 2027-28 forecast - $84,344,029
7 She noted that the HR Director is currently working on new MOUs with the City’s unions. She explained that the new MOUs will affect the forecast for salaries and wages. She added that there are 17 different benefit line items that must be considered when projecting the City’s benefits for the next five years.
Mayor Brownrigg stated that in the future, he would find it helpful if the percentage growth in expenditures is included in the five-year forecast. He added that he would also like to see a pie chart/ratio of the City’s different expenditures over the next five years. Finance Director Yu-Scott replied in the affirmative.
Finance Director Yu-Scott reviewed a summary of the General Fund forecast. The summary depicted the City’s revenues, expenditures, transfers in and out of the General Fund, and transfers to the Pension 115 Trust Fund. She also reviewed the forecast of the General Fund’s net surplus or deficit over the next five years:
• FY 2022-23 new projection – ($3,873,829)
• FY 2022-24 forecast – ($3,160,469)
• FY 2024-25 forecast – ($6,525,299)
• FY 2025-26 forecast – ($774,079)
• FY 2026-27 forecast - $3,576,371
• FY 2027-28 forecast - $4,206,001
Vice Mayor Colson stated that it is important to note that the City is running a deficit because the City is transferring a significant amount of funds into the debt service fund, CIP Project Funds, Capital Investment, and the Pension 115 Trust Fund. She explained that she didn’t want the community to get alarmed when they saw the numbers in red.
Finance Director Yu-Scott reviewed the City’s longer-term priority projects:
• Broadway Grade Separation
• Sea Level Rise Mitigations
• El Camino Real Undergrounding
• City Hall
Vice Mayor Colson stated that she appreciated the list of longer-term priority projects as it stresses the need for setting aside funds for infrastructure projects. She explained that she would add the Parks Yard to this list as it needs to be renovated.
Mayor Brownrigg concurred with Vice Mayor Colson.
Mayor Brownrigg stated that he wondered if the City was underestimating salaries and benefits in future years. However, he noted that he is comfortable with the numbers currently listed.
8 Councilmember Stevenson stated that he thought the impact of inflation might also have an impact on TOT.
Vice Mayor Colson stated that she agreed about the importance of including the impact of inflation in future numbers. She noted that as the City’s population increases, the City will also see the need to increase resources to Parks and Recreation, Fire, and the Police Department.
Mayor Brownrigg thanked Finance Director Yu-Scott for her presentation.
b. REVIEW OF DRAFT FY 2023-24 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
DPW Murtuza stated that in regard to Vice Mayor Colson’s comments regarding the need to renovate the Parks Yard, the project is in the Master Plan for City facilities.
Mayor Brownrigg discussed the need to improve accommodations that are sub-standard in the Parks Yard.
Senior Civil Engineer Okada reviewed the proposed draft CIP funding for FY 2023-24:
Funding Source FY 2023-24 Requests
General Fund $5,220,000
Measure I ($1 million for sidewalks / $1 million for
streets)
$2,000,000
Capital Reserve $600,000
Gas Tax, Measure A, and SB 1 $1,820,000
Parking Enterprise Fund $300,000
Impact Fees $2,400,000
Developer Contributions $2,000,000
Grants $5,995,000
TOTAL $20,335,000
Senior Civil Engineer Okada reviewed the General Fund CIP requests by category for FY 2023-24:
Programs FY 2023-24 Requests
Parks and Recreation Improvements $6,970,000
Bike, Pedestrian, and Traffic Improvements $9,845,000
Building Facilities Improvements $870,000
TOTAL $17,685,000
Senior Civil Engineer Okada reviewed the proposed Parks and Recreation Improvements for FY 2022-23:
9 Project
Description
General Fund Impact Fees Grants/Revenue Total Funding
Recommendation
Cuernavaca Field
Renovation and
ADA
Improvements
(including
synthetic turf)
$3,000,000 $3,000,000
Town Square $800,000 $2,000,000 $2,800,000
Burlingame Square
Transit Hub
$200,000 $200,000
Mills Canyon Slide
Repairs
$250,000 $250,000
BSD Synthetic Turf
Replacement Fund
$200,000 $200,000
Murray Field
Synthetic Turf
Replacement Fund
$150,000 $150,000
Bayside Parking
Lot ADA, Safety,
and EV Charging
$100,000 $100,000
Batting Cage at
Washington Park
$100,000 $100,000
Playground
Replacement Fund
$100,000 $100,000
Athletic Field
Renovations Fund
$50,000 $50,000
Annual Tree
Replacement
$20,000 $20,000
TOTAL $4,720,000 $50,000 $2,200,000 $6,970,000
Mayor Brownrigg asked about the $2 million under grants/revenue for the Town Square project. City Manager Goldman stated that the grants/revenue for the Town Square project is actually $3.75 million.
She explained that the City is receiving Federal and State grants along with funds from the private developer.
Mayor Brownrigg asked if the turf at Cuernavaca is for the baseball/soccer field. Mr. Okada replied in the affirmative.
Mayor Brownrigg asked if this would mean that dogs can no longer run on these fields. Parks and Recreation Director Glomstad stated that they would need to use other parks.
10 Vice Mayor Colson stated that there is a three-acre park near Cuernavaca that individuals could take their dogs to.
Councilmember Beach asked about the cost analysis for installing turf versus upkeep of natural fields.
Parks and Recreation Director Glomstad stated that there is a lot to consider, including:
• Water conservation
• Field upkeep
• Saturation from rain storms
• ADA compliance
Vice Mayor Colson stated that she was happy to see that funds were set aside for the batting cage for girls’ softball. She asked if the $100,000 was enough to fund this project. Parks and Recreation Director Glomstad replied in the negative. She stated that the Parks and Recreation Foundation is planning on raising some funds to help assist with this project.
Vice Mayor Colson stated she thought the City should ensure that it has facilities available for girls’ softball.
Councilmember Beach concurred with Vice Mayor Colson. She thought the City should explore options for fully funding this project.
Mayor Brownrigg suggested that Parks and Recreation Director Glomstad come back with a staff report on the cost of batting cages. He stated that the Council could take this up as a separate issue.
The Council concurred.
Senior Civil Engineer Okada reviewed the proposed Bicycle, Pedestrian and Traffic Improvements for FY 2022-23:
Project
Description
General
Fund
/Measure
I
Measure
A, Gas
Tax, SB 1
Impact /
Development
Fees
Grants /
Revenue
Capital
Reserve
Total Funding
Recommendation
North Rollins
Road Bicycle
and Ped
Improvements
$800,000 $3,100,000 $3,900,000
California Drive
Class I Bike
Improvements
(Oak Grove to
Burlingame
Ave)
$180,000 $1,620,000 $1,800,000
11 Sidewalk
Repairs and
ADA Ramps
Program
$1,200,000 $100,000 $1,300,000
South Rollins
Road Traffic
Calming Project
$190,000 $440,000 $630,000
Occidental Ave
Bike and
Pedestrian
Improvements
and Traffic
Calming
$180,000 $435,000 $615,000
Broadway
Grade
Separation
(construction
manager
/general
contractor)
$600,000 $600,000
Old Bayshore
Highway
Complete
Streets Project
$500,000 $500,000
Vision Zero
Action Plan
$100,000 $200,000 $300,000
Traffic and
Transportation
Studies
$100,000 $100,000
Citywide
Pedestrian
Safety
Improvements
$50,000 $50,000
Traffic Calming
Improvements
$50,000 $50,000
TOTAL $1,500,000 $470,000 $1,480,000 $5,795,000 $600,000 $9,845,000
Mayor Brownrigg asked what the status is of the Old Bayshore Complete Streets project. DPW Murtuza replied that last year, the Council approved a design concept. He explained that this year, the City is looking for Federal and State funds to assist with the project.
12 Councilmember Beach stated that she would find it helpful to see where the funds in the grants/revenue column come from whether State, Federal, or local. DPW Murtuza stated that all of the grants are Measure A or Measure W except for the Federal grants assisting with the North Rollins Road project.
Mayor Brownrigg asked if the $50,000 for traffic calming improvements is sufficient. DPW Murtuza replied that this is what staff is budgeting for now. However, if additional funds are needed, staff will come back to Council.
Senior Civil Engineer Okada reviewed some of the measures that staff has been installing for bicycle, pedestrian, and traffic improvements including:
• High visibility crosswalks
• Four-way stops where needed
• Rectangular rapid flashing beacon
• Bike boulevards
• Speed humps
• Striping
Senior Civil Engineer Okada reviewed the proposed Building Facility Improvements for FY 2023-24:
Project Description General Fund Impact Fees Total Funding Recommendation
Roof Replacement at
Police Department
$600,000 $600,000
HVAC and EMS Upgrade
at PW Corp Yard
$170,000 $170,000
Citywide Minor Building
Facilities
$100,000 $100,000
TOTAL $870,000 $870,000
Councilmember Beach stated that the Police Department used to have a flagpole. She asked if this is something that should be installed at this building. Vice Mayor Colson stated that she thought a flagpole was a good idea as it highlights that it is a civic building.
Senior Civil Engineer Okada reviewed the proposed Parking and Garages Improvements for FY 2023-24:
Project Description General Fund Parking Fund Total Funding Recommendation
Public Parking Lot
Resurfacing
$300,000 $300,000
TOTAL $300,000 $300,000
Senior Civil Engineer Okada reviewed the proposed Street Resurfacing Projects for FY 2023-24:
13 • Airport Boulevard from San Mateo city limit to 300 Airport Boulevard • Airport Boulevard from Anza Boulevard to Bridge (northbound lane) • El Prado Road from Canyon Road to Kenmar Way
• Broderick Road from Rollins Road to end
• Channing Road from Burlingame Avenue to Lexington Way • Concord Way from Dwight Road to Lexington Way
• Cowan Road from Gilbreth Road to Bayshore Highway
• Oxford Road from El Camino Real to California Drive
• Vancouver Avenue from Broadway to Carmelita Avenue
He noted that the total cost of the above list is $2,350,000.
Senior Civil Engineer Okada reviewed the proposed CIP Recommendations for FY 2023-24:
Program Draft FY 2023-24 Recommendations
Parks and Recreation Improvements $6,970,000
Bike, Pedestrian, and Traffic Improvements $9,845,000
Building Facilities Improvement $870,000
Parking and Garages $300,000
Street Resurfacing Projects $2,350,000
TOTAL $20,335,000
Senior Civil Engineer Okada reviewed the proposed CIP Funding for FY 2023-24:
Funding Source FY 2023-24 Requests
General Fund $5,220,000
Measure I ($1 million for sidewalks / $1 million for
streets)
$2,000,000
Capital Reserve $600,000
Gas Tax, Measure A, and SB 1 $1,820,000
Parking Enterprise Fund $300,000
Impact Fees $2,400,000
Developer Contribution $2,000,000
Grants $5,995,000
TOTAL $20,335,000
Mayor Brownrigg opened the item up for public comment. No one spoke.
City Manager Goldman thanked staff for putting this information together. She noted that this is just part one of the budget discussion, as the FY 2023-24 budget study session would be scheduled for May.
14 The Council thanked staff for their work.
6. ADJOURNMENT
Mayor Brownrigg adjourned the meeting at 8:01 p.m.
Respectfully submitted,
/s/
Meaghan Hassel-Shearer
City Clerk