1 BURLINGAME CITY COUNCIL
Approved Minutes
FY 2023-24 Budget Study Session on May 10, 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 at 6:30 p.m.
2. PLEDGE OF ALLEGIANCE TO THE FLAG
The pledge of allegiance was led by Councilmember Beach.
3. ROLL CALL
MEMBERS PRESENT: Beach, Brownrigg, Colson, Ortiz, Stevenson Mayor Brownrigg appeared remotely as noted on the agenda from Washington, D.C.
Vice Mayor Colson asked to appear remotely at the meeting pursuant to AB 2249.
MEMBERS ABSENT: None
Due to Mayor Brownrigg participating in the meeting remotely, he asked that Councilmember Beach chair the meeting.
Vice Mayor Colson requested to participate in the meeting remotely pursuant to AB 2249.
City Attorney Guina stated that because this request is being made after the agenda was published, the Council will need to make a motion to add the item to the agenda.
Councilmember Ortiz made a motion to add remote participation pursuant to AB 2249 to the agenda; seconded by Councilmember Stevenson.
Councilmember Beach opened the item up for public comment. No one spoke.
The motion passed unanimously by roll call vote, 5-0.
Councilmember Beach asked if there was any public comment on whether to allow Vice Mayor Colson to participate remotely pursuant to AB 2249. There was none.
2 Mayor Brownrigg made a motion to allow Vice Mayor Colson to participate remotely, seconded by Councilmember Ortiz. The motion passed unanimously by roll call vote, 5-0.
4. PUBLIC COMMENTS
There were no public comments.
5. STAFF REPORTS
a. DISCUSSION OF THE CITY’S FISCAL YEAR 2023-24 BUDGET; ADOPTION OF A RESOLUTION TO
APPROVE PERSONNEL CLASSIFICATION AND POSITION CHANGES AND AMEND THE CITY OF
BURLINGAME SALARY SCHEDULE
City Manager Goldman thanked Finance Director Yu-Scott and her team for putting together the proposed budget.
Finance Director Yu-Scott began by giving an overview of the proposed budget for FY 2023-24:
• General Fund - $74.20 million
• Capital Improvements - $32.27 million
• Utilities (Water and Sewer) - $28.54 million
• Other Funds - $13.21 million
• Total - $148.22 million
Finance Director Yu-Scott reviewed the proposed FY 2023-24 General Fund operating budget:
• General Fund Revenues - $80.51 million
• General Fund Expenditures – ($74.20 million)
• Transfers:
o Support Capital Improvements – ($6.62 million)
o Debt Service Obligations – ($3.62 million)
o Cost Recovery - $1.87 million
• Net (Deficit) – ($2.06 million)
o Contribution to Pension Trust Fund – ($0.86 million)
• Net (Deficit) after Contribution to Pension Trust – ($2.92 million)
Finance Director Yu-Scott stated that the proposed General Fund revenue is up 6.6% from the current fiscal year budget, and the total requirement increased by 4.1%.
Finance Director Yu-Scott reviewed the projected FY 2023-24 General Fund revenues:
• Property Tax - $31,644,580
• Sales and Use Tax - $17,458,222
3 • Transient Occupancy Tax $17,919,000
• Other Taxes
o Franchise Tax - $1,748,000
o Business Tax - $1,500,000
o Real Property Transfer Tax - $500,000
o State HOPTR - $63,000
• License and Permits - $82,600
• Fines, Forfeitures, and Penalties - $653,000
• Use of Money and Property - $210,000
• Charges for Services - $6,909,300
• Other Revenue - $77,000
• State Subventions - $215,000
• Interest Income - $1,530,000
• Total General Fund Revenues - $80,509,702
Finance Director Yu-Scott noted that the City’s tax revenue is beginning to bounce back from the pandemic numbers.
Finance Director Yu-Scott reviewed a table that compared the different makeups of the City’s revenue sources from FY 2021-22 through the proposed budget for FY 2023-24. She also reviewed a bar chart that showed the history of the City’s top three General Fund revenue sources (property tax, sales and use tax, and transient occupancy tax) from FY 2014-15 through the proposed budget for FY 2023-24.
Finance Director Yu-Scott discussed the proposed FY 2023-24 General Fund expenditures:
• General Administration - $8,188,642
• Public Safety
o Fire and Disaster Preparedness - $14,702,559
o Police and Dispatch - $19,292,052
o Parking Enforcement - $750,571
• Public Works - $8,600,082
• Community Development - $2,782,144
• Leisure and Neighborhood Services
o Aquatics Center - $462,000
o Library - $6,190,905
o Parks and Tree Maintenance - $8,476,106
o Recreation - $4,753,820
• Total General Fund Expenditures - $74,198,883
Finance Director Yu-Scott reviewed a table that depicted the General Fund operating summary from FY 2021-22 through the proposed budget for FY 2023-24. She also reviewed the City’s contributions to the
4 Capital Improvement Program. She noted that the City’s contribution from the General Fund decreased due to the pandemic.
Mayor Brownrigg asked if the City conducts comparisons with other cities regarding how each jurisdiction is recovering from the pandemic. Finance Director Yu-Scott replied in the negative. She noted that it is something that staff could consider in the future.
Finance Director Yu-Scott reviewed a table that depicted how the General Fund balance will be assigned.
Councilmember Beach asked if she was correct that the City needs to invest in the Capital Improvement Program at a higher rate to make up for the Council’s decision to make smaller contributions during the pandemic. Finance Director Yu-Scott stated that even though the City is seeing recovery, the City should continue to be cautious when it comes to funding the Capital Improvement Program.
Finance Director Yu-Scott stated that for FY 2023-24, the unassigned General Fund balance is projected to be $2,716,303. She noted that this is an improvement from FY 2022-23, when the unassigned fund balance was $583,976.
Finance Director Yu-Scott reviewed the proposed budget summary for other funds:
• Capital Projects - $32,270,000
• Financing Authority - $6,210,105
• Water Enterprise - $16,783,918
• Sewer Enterprise - $11,755,394
• Parking Enterprise - $1,106,657
• Solid Waste Enterprise - $745,759
• Landfill Fund - $284,848
• Building Enterprise - $3,938,336
• Special Revenue Funds - $218,100
• Internal Services Fund - $704,456
• Total - $74,017,573
Finance Director Yu-Scott reviewed the City’s history of contributions to the Pension Trust Fund and noted that the projected balance for FY 2023-24 is $19,312,492.
Vice Mayor Colson asked if the City has a goal for funding of the Pension Trust Fund. Finance Director Yu- Scott replied in the negative. She stated that the City is hoping to reach the threshold rate for Safety Employees by FY 2025-26 and for Miscellaneous Employees by FY 2027-28. She added that she would review these projections in the coming year.
Vice Mayor Colson thanked Finance Director Yu-Scott for reviewing the projections.
5 Finance Director Yu-Scott and City Manager Goldman reviewed the recommended personnel classification and position changes for FY 2023-24:
• Increase of the Sustainability Program Manager from 0.50 FTE to 0.75 FTE • Allow the Human Resources Department to be flexibly staffed for one position as a Human Resources Analyst II/Senior Human Resources Analyst
• Allow the Parks Division to convert one Parks Maintenance Leadworker to a Tree Leadworker and be flexibly staffed for one position as a Parks Maintenance Worker/Tree Maintenance Worker/Tree Worker
• Add one Engineering Technician II position to the Public Works Department • Add one Fleet Supervisor position and reclassify the Facilities and Fleet Supervisor to a Facilities Supervisor position
• Amend the City of Burlingame Salary Schedule
Councilmember Ortiz stated that the staff report shows an increase of General Fund expenditures of $3 million. He noted the following increases:
• Police and Dispatch - $800,000 increase
• Fire and Disaster - $586,000 increase
• Public Works - $723,000 increase
He asked for information on what brought about these increases. City Manager Goldman stated that CCFD had a 6.2% increase to each city based primarily on personnel costs and capital equipment. She added that the police entered into a new MOU that has caused labor cost increases.
Finance Director Yu-Scott stated that the increase to Public Works is due to insurance costs, personnel, and contracts.
Mayor Brownrigg stated that he appreciated Councilmember Ortiz’s questions. He noted that he thought the increase tracked with the high rate of inflation that the country was experiencing.
Councilmember Stevenson asked if due to the increased focus on sustainability, the Sustainability Program Manager’s hours should be increased to full-time. City Manager Goldman stated that she believed 30 hours a week was a good start. She noted that there are other individuals in the City that assist with sustainability programs.
Vice Mayor Colson stated that she was pleased to see the economic recovery of the City. She noted that while the City’s TOT has not returned, she believes it will soon.
City Manager Goldman stated that the expenditures in the budget are the most that each department can spend. She noted that most departments never reach that level, and therefore the deficit will probably go down a bit. She added that staff also likes to be conservative in revenue predictions.
6 Mayor Brownrigg stated that he believes the proposed budget is showing the turnaround that the Council wants. He added that he is thankful for the staff’s conservative approach. He asked if he was correct that the City never tapped into its Economic Stability Reserve. City Manager Goldman replied in the affirmative.
Mayor Brownrigg stated that he is glad that the City is diversifying its revenue sources.
Councilmember Beach opened the item up for public comment. No one spoke.
Councilmember Ortiz made a motion to adopt Resolution Number 048-2023; seconded by Councilmember Stevenson. The motion passed unanimously by roll call vote, 5-0.
Finance Director Yu-Scott next reviewed the City’s five-year forecast. She began by reviewing the proposed revenue mix for FY 2023-24:
• Property Tax – 39.3%
• Transient Occupancy Tax – 22.3%
• Sales and Use Tax – 21.7%
• Other Revenue – 16.8%
Finance Director Yu-Scott reviewed a bar chart that showed how the different sources of General Fund revenue impacted the City’s total revenue from FY 2017-18 to present.
Finance Director Yu-Scott reviewed the City’s property tax projection. She noted that staff is expecting an average annual growth of approximately 4.8%. She also explained that staff is expecting an annual average growth of 2.6% for sales and use tax.
Finance Director Yu-Scott discussed the TOT assumptions over the next five years. She noted that staff is projecting growth in TOT, and there is the potential that by FY 2027-28, the City will return to pre-pandemic numbers.
Mayor Brownrigg thought it might be useful to also track the total number of hotel rooms in the city. He noted that the Red Roof Inn was permanently closed. Therefore, he thought that also understanding the rise and fall of the number of hotel rooms in comparison with the TOT collected might give the Council a better understanding of this revenue source.
Councilmember Stevenson asked if property tax projections were impacted by interest rate increases.
Finance Director Yu-Scott stated that the numbers are based on the current information available. She added that the property tax category also includes ERAF.
Finance Director Yu-Scott reviewed a chart of the General Fund revenue forecast for the next five years.
Mayor Brownrigg discussed the Business License Tax Measure. He explained that he believed there would be more growth in this line item due to the increased license tax and the cannabis distribution facility tax.
7 City Manager Goldman noted that the City does not yet have a cannabis distribution facility, and therefore it is not included in the projections.
Finance Director Yu-Scott reviewed the five-year forecast of General Fund expenditures. She noted that this forecast includes personnel wage increases.
Finance Director Yu-Scott reviewed the five-year forecast of the General Fund balance assignments. She noted that it is very likely that the unassigned fund balance will be in the negative beginning in FY 2024-25.
She stated that if this happens, the City will need to utilize different reserves such as the Pension Trust Fund.
Finance Director Yu-Scott reviewed the longer-term priority projects:
• Broadway Grade Separation
• Sea Level Rise Mitigations
• El Camino Real Undergrounding
• City Hall
• Parks Yard
Finance Director Yu-Scott thanked her staff and colleagues for assisting her in putting the proposed budget together.
Councilmember Beach opened the item up for public comment. No one spoke.
Council thanked Finance Director Yu-Scott for her presentation and hard work.
b. CITY COUNCIL REVIEW OF DRAFT FY 2023-24 CAPITAL IMPROVEMENT PROGRAM
Senior Civil Engineer Kevin Okada began with a summary of the proposed Capital Improvement Program for FY 2023- 24:
CIP Program Categories Total Request (in thousands)
Parks and Recreation Improvements $8,120
Bicycle, Pedestrian, and Traffic Improvements $9,845
Building Facilities Improvements $870
Parking Enterprise Fund Projects $450
Street Resurfacing Program $2,350
Water Enterprise Fund Projects $4,550
Sewer System Enterprise Fund Projects $2,835
Storm Drainage System Projects $3,250
Total $32,270
Mr. Okada next reviewed the proposed FY 2023-24 Parks and Recreation Improvements:
8 Project Description General Fund Impact Fees Grants/Developer Contribution
Total Request (in
thousands)
Cuernavaca Field
Renovation and ADA
Improvements
(including synthetic
turf)
$3,000 $3,000
Town Square $3,750 $3,750
Burlingame Square
Transit Hub
$200 $200
Mills Canyon Slide
Repairs
$250 $250
BSD Synthetic Turf
Replacement Fund
$200 $200
Murray Field
Synthetic Turf
Replacement Fund
$150 $150
Bayside Parking Lot
ADA, Safety, and EV
Charging
$100 $100
Batting Cage at
Washington Park
$300 $300
Playground
Replacement Fund
$100 $100
Athletic Field
Renovations Fund
$50 $50
Annual Tree
Replacement
$20 $20
Total $4,120 $50 $3,950 $8,120
He noted that since the March Mid-Year Budget Study Session, staff has incorporated funding for the Town Square and the batting cage at Washington Park.
Mr. Okada reviewed the proposed FY 2023-24 Bicycle, Pedestrian, and Traffic Improvements:
Project
Description
General
Fund/Measure
I
Measure A,
Gas Tax, SB 1
Impact/
Development
Fees
Grants Capital
Investment
Reserve
Total Request
(in
thousands)
North Rollins
Road Bicycle &
Pedestrian
Improvements
$800 $3,100 $3,900
California
Drive Class I
$180 $1,620 $1,800
9 Bike
Improvements
Sidewalk
Repairs and
ADA Ramps
Program
$1,200 $100 $1,300
South Rollins
Road Traffic
Calming
Project
$190 $440 $630
Occidental
Avenue Bike
and
Pedestrian
Improvements
and Traffic
Calming
$180 $435 $615
Broadway
Grade
Separation
$600 $600
Old Bayshore
Highway
Complete
Streets Project
$500 $500
Vison Zero
Action Plan
$100 $200 $300
Traffic and
Transportation
Studies
$100 $100
Citywide
Pedestrian
Safety
Improvements
$50 $50
Traffic
Calming
Improvements
$50 $50
Total $1,500 $470 $1,480 $5,795 $600 $9,845
Mr. Okada reviewed the proposed FY 2023-24 Building Facility Improvements:
Project Description General Fund Impact Fees Total Request (in thousands)
Roof Replacement at
Police Department
$600 $600
10 HVAC and EMS Upgrades
at PW Corp Yard
$170 $170
Citywide Minor Building
Facilities
$100 $100
Total $0 $870 $870
Mr. Okada reviewed the proposed FY 2023-24 Parking Enterprise Fund Projects:
Project Description General Fund Parking Fund Total Request (in thousands)
Public Parking Lot
Resurfacing
$300 $300
EV Charger Masterplan $150 $150
Total $0 $450 $450
He noted that the change to the proposed Parking Enterprise Fund Projects from the Mid-Year Budget Study Session was the inclusion of the EV Charger Masterplan.
Mr. Okada reviewed the list of proposed street resurfacings for FY 2023-24:
• 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 cost for the proposed street resurfacing is $2,350,000.
Mr. Okada reviewed the proposed FY 2023-24 Water System CIP:
Project Water Enterprise Grants Total Request (in
thousands)
Burlingame Terrace Water
Main Replacement, South
ECR Ph. 4
$2,430 $2,430
Burlingame Park
Subdivision Water Main
Replacement
$400 $400
Sisters of Mercy Pump
Station
$200 $200
Public Works Corporation
Yard EMS Upgrade
$170 $170
11 Advanced Metering
Infrastructure
$150 $1,050 $1,200
Water Meter Replacement
Program
$100 $100
Regional Water Supply
Studies and Coordination
$50 $50
Total $3,500 $1,050 $4,550
Councilmember Beach asked if all the water mains below El Camino Real have been finalized. Mr. Okada replied in the affirmative and stated that this was done before the start of the Caltrans project on El Camino Real.
Mr. Okada reviewed the proposed FY 2023-24 Sewer System CIP:
Projects Total Request (in thousands)
1740 Rollins Road Pump station Force Main Project $1,000 NBSU Force Main Evaluation and Repair $750
Digester Equipment Building, Digester N. 2, and Sludge
Storage Building Design
$500
Smoke Testing of Sewer Mains $250
Public Works Corporation Yard EMS Upgrade $170
1000 Rollins Road Lift Station Pumps Upgrade $100
Final Effluent Pumps Upgrade at the Wastewater
Treatment Plant
$65
Total $2,835
Mr. Okada reviewed the proposed FY 2023-24 Storm Drain System CIP:
Projects Total Request (in thousands)
Citywide Neighborhood Storm Drain Projects $1,500
Cowan/Rollins Road Pumps Rehabilitation $750
Easton Creek/El Portal Creek Levee Improvements $500
City Storm Drainage Asset Studies and Master Plan $500 Total $3,250
Mr. Okada reviewed the summary of the proposed FY 2023-24 Capital Improvement Program:
CIP Program Categories Total Request
General Fund $4,620,000
Measure I Fund $2,000,000
Gas Tax, Measure A, and SB 1 Funds $1,820,000
Parking Enterprise Fund $450,000
Impact Fees/Developer Fees $4,400,000
Capital Investment Reserve $600,000
Grants $8,795,000
Water System Enterprise Fund $3,500,000
12 Sewer System Enterprise Fund $2,835,000
Storm Drainage Fee Fund $3,250,000
Total $32,270,000
Vice Mayor Colson asked how the City compares in CIP spending to other cities. City Manager Goldman stated that she would need to get back to Council with this information. However, she noted that with the size of the City’s staff, she felt that Burlingame was taking on a heavy load of CIP projects.
Vice Mayor Colson stated that she agreed that $32,270,000 worth of improvements is a lot for a staff of the City’s size.
Councilmember Stevenson asked if the City projects out the future CIP needs. City Manager Goldman stated that the City undertakes a five-year CIP in order to better prioritize the City’s needs.
Councilmember Ortiz thanked Public Works all their work and foresight.
Councilmember Beach opened the item up for public comment. No one spoke.
Councilmember Beach discussed exploring the possibility of doing a permanent flagpole at the police department.
She asked if this would be covered under minor City building repairs. DPW Murtuza replied in the affirmative.
6. ADJOURNMENT
Mayor Brownrigg adjourned the meeting at 8:03 p.m.
Respectfully submitted,
/s/
Meaghan Hassel-Shearer
City Clerk