1 BURLINGAME CITY COUNCIL
Approved Minutes
FY 2023-24 Mid-Year Budget Study Session on March 13, 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 6:30 p.m.
2. PLEDGE OF ALLEGIANCE TO THE FLAG
The pledge of allegiance was led by Andrea Pappajohn.
3. ROLL CALL
MEMBERS PRESENT: Beach, Brownrigg*, Colson, Ortiz, Stevenson MEMBERS ABSENT: None
* Councilmember Brownrigg appeared remotely from Oregon.
4. REQUEST FOR AB 2249 REMOTE PARTICIPATION
There were no requests.
5. PUBLIC COMMENTS
There were no public comments.
6. STAFF REPORTS AND COMMUNICATIONS
a. ADOPTION OF A RESOLUTION AMENDING THE FY 2023-24 OPERATING AND CAPITAL BUDGET TO
REFLECT THE RECOMMENDED MID-YEAR ADJUSTMENTS AND ADOPTION OF A RESOLUTION
AUTHORIZING POSITION AMENDMENT
Finance Director Yu-Scott began by reviewing the FY 2022-23 General Fund audit results. She discussed the following:
2 Fund Balance on
July 1, 2022
Revenues Expenditures Transfers in/out Fund Balance on
June 30, 2023
$47.4 million $83.6 million $(68.3 million) $(7.7 million) $55 million
Finance Director Yu-Scott discussed the $55 million fund balance and how it is being utilized:
• $21.3 million assigned – economic stability reserve, contingency reserve, catastrophic reserve • $17.6 million restricted pension
• $15.8 million unassigned
• $0.3 million non-spendable – prepaids
Finance Director Yu-Scott reviewed the following chart regarding the FY 2023-24 General Fund revenues:
General Fund
Revenue (in
thousands)
Adopted
Budget
Current Budget Mid-Year
Revised
Budget
Total Mid-Year
Changes ($)
Total Mid-Year
Changes (%)
Property Tax $31,645 $31,645 $31,077 $(568) (1.8%)
Sales and Use
Tax
$17,458 $17,458 $17,087 $(371) (2.1%)
Transient
Occupancy Tax
$17,919 $17,919 $18,828 $909 5.1%
Other Taxes $3,811 $3,811 $3,911 $100 2.6%
Charges for
Services
$6,909 $6,909 $7,749 $840 12.2%
Others $2,768 $2,768 $3,279 $511 18.5%
Total $80,510 $80,510 $81,930 $1,421 1.8%
Finance Director Yu-Scott reviewed the City’s property tax revenue history:
• FY 2014-15 - $16.7 million
• FY 2015-16 - $17.6 million
• FY 2016-17 - $18.9 million
• FY 2017-18 - $20.3 million
• FY 2018-19 - $22 million
• FY 2019-20 - $23.3 million
• FY 2020-21 - $24.2 million
• FY 2021-22 - $27.7 million
• FY 2022-23 - $31.3 million
• FY 2023-24 (estimated) - $31.1 million
Next, Finance Director Yu-Scott reviewed the City’s sales tax revenue history:
• FY 2014-15 - $11.1 million
• FY 2015-16 - $12.8 million
• FY 2016-17 - $12.1 million
3 • FY 2017-18 - $12.3 million
• FY 2018-19 - $15.3 million
• FY 2019-20 - $12.5 million
• FY 2020-21 - $13.1 million
• FY 2021-22 - $14.6 million
• FY 2022-23 - $14.0 million
• FY 2023-24 (estimated) - $14.0 million
Finance Director Yu-Scott reviewed the City’s TOT revenue history:
• FY 2014-15 - $23.7 million
• FY 2015-16 - $26.1 million
• FY 2016-17 - $26.3 million
• FY 2017-18 - $27.9 million
• FY 2018-19 - $29.4 million
• FY 2019-20 - $20.4 million
• FY 2020-21 - $5.7 million
• FY 2021-22 - $12.4 million
• FY 2022-23 - $18.3 million
• FY 2023-24 (estimated) - $18.8 million
Finance Director Yu-Scott stated that the budget adopted for FY 2023-24 included General Fund expenditures of $74.5 million. However, she explained that the mid-year budget included a proposed 1.9% increase due to the following changes:
• $611,000 increase to salaries and wages
• $97,000 increase to benefits
• $760,000 increase to operating costs
• $22,000 increase to capital outlay
Finance Director Yu-Scott reviewed the FY 2023-24 General Fund balance:
General Fund (in
thousands)
FY 2022-23 Actual FY 2023-24 Adopted
Budget
FY 2023-24 Mid-Year
Beginning Fund Balance
(audited)
$47,394 $43,971 $54,993
Projected revenues $83,582 $80,510 $81,930
Projected departmental
expenditures
($68,246) ($74,519) ($79,487)
Subtotal, Revenue Net
of Expenditures
$15,336 $5,991 $2,443
Transfer to Debt Service ($3,600) ($3,623) ($3,623)
Transfer to Capital
Project Fund
($6,042) ($6,620) ($7,136)
4 Other Transfers In (Out)
of General Fund
$1,905 $1,866 $1,923
Ending Fund Balance
(Projected)
$54,993 $41,585 $48,600
Finance Director Yu-Scott reviewed the FY 2023-24 Mid-Year General Fund balance of $48.6 million. She explained that this balance is divided up into the following reserves:
• Economic Stability Reserve - $19,663,000
• Catastrophic Reserve - $2,000,000
• Contingency Reserve - $500,000
• Pension Trust Fund - $18,432,215
• Unassigned Fund Balance - $8,005,269
She noted that in addition to the General Fund reserves, the City also has a Capital Reserve Fund in the amount of $20,597,670, which is earmarked for the Broadway Grade Separation project and the El Camino Real underground utility project.
Finance Director Yu-Scott reviewed FY 2023-24 revisions to transfers in and out:
Transfers In:
• Special Revenue – ($5,000)
• Parks and Trees CIP - $55,000
• Street CIP - $90,000
• Facilities CIP - $185,000
• Landfill Fund - $1 million
Transfers Out:
• General Fund - $80,000
• Measure A Fund - $60,000
• Parking Fund - $35,000
• Public Facilities Impact Fee - $130,000
• Solid Waste Fund - $1 million
Finance Director Yu-Scott reviewed the General Fund 5-Year Forecast:
General Fund
(in thousands)
FY 2023-24
New
Projection
FY 2024-25
Forecast
FY 2025-26
Forecast
FY 2026-27
Forecast
FY 2027-28
Forecast
FY 2028-29
Forecast
Total Revenues $81,930 $86,172 $89,928 $93,348 $96,926 $100,676 Total
Expenditures
($79,487) ($79,352) ($82,545) ($85,900) ($89,291) ($93,001) Revenue Over
(Under)
Expenditures
$,2443 $6,820 $7,382 $7,448 $7,635 $7,675
5 Transfer to
Capital Project
Fund
($7,136) ($12,540) ($10,720) ($7,620) ($6,920) ($5,620) Transfer to Debt
Service Fund
($3,623) ($3,650) ($3,122) ($3,105) ($3,104) ($3,111)
Other Transfers
In (Out)
$1,923 $1,914 $1,823 $1,862 $1,912 $1,963
Change in Fund
Balance before
adjustment
($6,393) ($7,456) ($4,636) ($1,415) ($477) $907
Adjustment –
Transfer to
Pension Trust
($868) ($500) ($500) ($500) ($500) ($500)
Net
Surplus/(Deficit)
($7,261) ($7,956) ($5,136) ($1,915) ($977) $407
Vice Mayor Beach stated that the City is continuously investing in capital project funds. She explained that when the City adjusts its fund balance, it is because the City is investing in different reserves and funds.
She asked if this was a fair characterization. Finance Director Yu-Scott replied in the affirmative.
Councilmember Brownrigg stated that he found the chart to be a little hard to understand as it looks like the City is intentionally deficit spending. He explained that he thought it would be helpful to show on these charts that there are reserves in order to assure the community that the City isn’t spending more than it has.
Councilmember Ortiz stated that he thought it was important to not create the perception that the City is swimming in funds to handle capital projects. He also noted that the capital projects that the City was investing in were necessary and not luxury items.
City Manager Goldman stated that she would work with Finance Director Yu-Scott to determine the best way to show that the City does not need to raise funds and instead has an ending fund balance. She added that the City is not as flush as it once was, which is what the chart depicts.
Councilmember Brownrigg stated that the City weathered a big storm due to COVID. He added that the City has been able to keep its employees while cutting down on spending.
Mayor Colson stated that staff proposed a $500,000 transfer to the Pension Trust but is looking for direction from Council. She asked how much is in the Pension Trust. Finance Director Yu-Scott replied that there is $18.4 million in the Pension Trust Fund.
Mayor Colson stated that if the Council approves staff’s suggestion, then over the next five years, the City will add another $2.5 million to the Pension Trust Fund.
6 Councilmember Stevenson stated that he was good with the $500,000 as it provides the City with flexibility.
Councilmember Brownrigg concurred.
Finance Director Yu-Scott stated that staff is asking for a reclassification of a part time (0.45 FTE) to permanent part-time (0.75 FTE) administrative assistant II position.
Mayor Colson stated that she thought this was beyond reasonable in order to better help staff deal with the increased demand of work and also to meet the needs of the community.
Councilmember Brownrigg concurred. He stated that he appreciates that the City doesn’t grow ahead of need and is instead disciplined. He added that the City did need to recognize that it is growing and may need to further address staffing needs.
Mayor Colson opened the item up for public comment. No one spoke.
Vice Mayor Beach made a motion to adopt Resolution Number 029-2024; seconded by Councilmember Ortiz. The motion passed unanimously by roll call vote, 5-0.
Councilmember Ortiz made a motion to adopt Resolution Number 030-2024; seconded by Councilmember Stevenson. The motion passed unanimously by roll call vote, 5-0.
Mayor Colson thanked staff for the presentation.
b. REVIEW OF DRAFT FY 2024-25 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
Senior Civil Engineer Okada began by reviewing the proposed draft CIP funding by source for FY 2024-25:
Funding Source FY 2024-25 Requests (in thousands)
General Fund $9,540
Measure I ($1 million for sidewalks, streets, and
town square)
$3,000
Gas Tax, Measure A, and SB 1 $2,875
Parking Enterprise Fund $400
Impact Fees $3,150
Grants/Loans $6,500
TOTAL $25,465
Mr. Okada next reviewed the proposed FY 2024-25 CIP program by categories:
Programs FY 2024-25 Requests (in thousands) and
percentage of CIP Program
Parks and Recreation Improvements $10,140 (40%)
7 Building Facilities Improvements $6,400 (25%)
Bike, Pedestrian, and Traffic Improvements $5,875 (23%) Parking and Garages $400 (2%)
Street Resurfacing $2,650 (10%)
TOTAL $25,465
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 $3,000 $1,000 $2,500 $500 $7,000 Mills Canyon Slide Repairs $1,700 $1,700
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 $6,140 $1,000 $2,500 $500 $10,140
Councilmember Brownrigg asked if the City should get releases from owners for potential future liability as they undertake work below private properties in Mills Canyon. City Attorney Guina replied in the negative.
He stated that with the City taking pro-active measures, the acceptance of the project gives the City design immunity protections that are provided under the Government Code.
Vice Mayor Beach discussed Laguna Park and asked if there would be comprehensive renovations on the playground. Parks and Recreation Director Glomstad replied in the affirmative and added that it would be a beach-themed playground.
Mayor Colson stated that every few years, she gets asked about installing Magical Bridge playgrounds. She asked if the City considered utilizing these. Parks and Recreation Director Glomstad stated that the City’s playgrounds have lots of features and that the Magical Bridge playgrounds take up large spaces.
Mr. Okada reviewed the proposed FY 2024-25 building facilities improvements:
Project Description General
Fund
Low Interest
Loans
Total Funding
Request
8 PD ADA and Sally Port Improvements – Phase1 $1,200 $1,200 Roof Replacement at PW Corp Yard $500 $500
PD Replacement of Emergency Radio Infrastructure $250 $250 Fire Station 34 HVAC Improvements – Design $200 $200
Fire Station 34 Miscellaneous Improvements $200 $200
Parks Corporation Yard Renovation – Planning $200 $200 EV Chargers at the PW Corp Yard $175 $175
PD Women’s Bathroom/Locker Rooms Renovations –
Phase 2 – Design
$150 $150
Program Management $150 $150
Citywide Minor Building Facilities $100 $100
Police Replacement of Dispatch Consoles $100 $100
ADA Transition Plan $100 $100
Fire Station 35 Planning – Phase 2 – Design $75 $75
Library Garage, Highland Garage, and Corp Yard Solar
Panel Project
$3,000 $3,000
TOTAL $3,400 $3,000 $6,400
Councilmember Brownrigg discussed the funds going towards CCFD projects. He noted that the station on Rollins Road might need to be improved due to the increase in activity across the highway and in that neighborhood. He asked if this would be done and if the City would be responsible for covering the cost.
City Manager Goldman stated that CCFD previously presented its Standards of Cover update to the Council.
She explained that the Fire Board would be undertaking a strategic planning process to figure out what needs to be done moving forward. She noted that this would include whether Station 36, which is currently an administrative building, would need to be reactivated as a working station. She stated that in general, the fire stations are owned and maintained by the home agencies. However, she explained that the administrative building benefits the entire department, and therefore costs should be shared across the three cities.
Vice Mayor Beach discussed the need to upgrade the Parks Corporation Yard.
Mr. Okada reviewed the proposed FY 2024-25 bike, pedestrian, and traffic improvements:
Project
Description
General
Fund
Gas Tax Measure
A
Measure
I
Development/
Impact Fees
Grants Total
Funding
Request
Old Bayshore
Highway Design
$650 $3,000 $3,650
Sidewalk Program
and ADA
Improvements
$100 $1,000 $1,100
9 Citywide
Pedestrian
Improvements
$250 $250
Citywide Traffic
Calming
Improvements
$225 $225
Broadway Corridor
Traffic Signal
Interconnect
Study
$200 $200
Bay Trail
Improvements at
Airport and Beach
Design
$150 $150
Floribunda/
Almer/ Bellevue
Intersection
Design
$150 $150
Downtown
Broadway
Intersection
Improvements
$150 $150
TOTAL $0 $100 $1,125 $1,000 $650 $3,000 $5,875
Mayor Colson asked if there was pricing yet for the Town Square. City Manager Goldman replied in the negative.
Mayor Colson asked when this project would go out to bid. Parks and Recreation Director Glomstad replied that the City is hoping to put the project out to bid in August.
Vice Mayor Beach asked about the $3.65 million cost for the Old Bayshore Highway Design. DPW Murtuza stated that it is a large project that involves four lanes and is approximately one mile long. He noted that it would include ADA improvements, green landscaping, and more.
Councilmember Brownrigg discussed how to prioritize the Old Bayshore Highway project. He asked if the City was boxing itself into prioritizing this project by accepting grants. DPW Murtuza replied in the negative.
Mr. Okada next stated that the City is proposing to resurface Parking Lot C with $400,000 from the Parking Fund.
Mr. Okada reviewed the proposed list of street resurfacing projects for FY 2024-25 totaling $2,650,000:
• Cananea Court – from Cananea Avenue to end
10 • Carmelita Avenue - from California Drive to El Camino Real • 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
• 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)
Mayor Colson opened the item up for public comment.
Manito Velasco urged the City to set aside some funds to mitigate new traffic patterns that will be the result of large infrastructure projects such as the Broadway Grade Separation and the work on El Camino Real. (Comment submitted via [email protected] ).
Mayor Colson closed public comment.
Councilmember Ortiz stated that he thought the work on Old Bayshore Highway was important due to the City’s reliance on TOT and the number of new buildings being designed along the Bayfront.
Vice Mayor Beach discussed a potential mitigation fund in order to assist with large projects being undertaken.
Councilmember Stevenson thanked staff for the presentation.
Councilmember Brownrigg asked about the funding for Rollins Road. DPW Murtuza replied that the City received $3.1 million in grant funds last year from MTC.
Mayor Colson thanked staff for their hard work.
7. ADJOURNMENT
Mayor Colson adjourned the meeting at 7:57 p.m.
Respectfully submitted,
/s/
Meaghan Hassel-Shearer, City Clerk