San Bruno City Council
June 13, 2023

Workshop #1 Presented to the San Bruno City Council on June 13, 2023 Alex D. McIntyre, Interim City Manager
• Overview
 Provide Background on Budget Preparation Process
• Receive the City Manager’s Proposed Fiscal Year 2023-24 Operating and Capital Budget
• Timeline and Next Steps
• Discussion and Questions

AGENDA AND OBJECTIVE FOR THIS EVENING
2 • Budget Preparation Process Typically Starts in January of Each Calendar Year
• Budget is for Fiscal Year 2024: July 1, 2023 – June 30, 2024  Operating and Capital Improvement Program (CIP)
 Budget is the Fundamental Policy Document
 Serves as the Financial Plan for the Year
oEstablishes How Resources are Allocated

BACKGROUND
3 Operating
Expenditures
Capital Improvement
Program
Total
Appropriations
$131,656,019 $102,438,541 $234,094,560

OVERVIEW
4 • Executive Summary
 In FY2022-23
oSan Bruno experienced continued economic growth and recovery oReceived significant amount of one-time funds related to development oReceived one-time federal funds related to American Rescue Plan Act (ARPA)
 FY2023-24 Budget remains relatively unchanged
oExceptions:
• Expanded Recreation and Aquatic Center programming/resources • Contractual increases
oProposed FY2023-24 Budget is balanced using General Fund Balance oNo reductions to core services

OVERVIEW
5 • Budget provides a comprehensive overview of the organization, operations, anticipated revenues, and projected expenditures to support operations and projects
• Operating Budget outlines specific work program objectives and goals • Capital Improvements Program Budget outlines a $102 million work program
• Many of the City Council’s adopted focus areas and strategic initiatives included
 Reflects the City’s fiscal policies and plans for the service priorities

OVERVIEW
6 • City Council Adopted Focus Areas:
 Implement the Transit Corridor Vision to Revitalize Downtown and Commercial Corridor
 Assure Rehabilitation & Replacement of Critical Community Facilities and Infrastructure
 Grow City Revenues to Assure On-Going Fiscal Stability and Economic Vitality
 Continue to Strengthen Community Connections and Engagement  Protect and Improve Community Aesthetics and Safety
 Continue Proactive Planning for the Future of San Bruno  Promote organizational Health, Employee Success, and Governance

OVERVIEW
7 • Highlights from FY2022-23
 Continued completion of the New Recreation and Aquatic Center  Comprehensive Fiscal Sustainability Project
 Implementation of the Transit Corridors Plan
 Transitioned from At-Large to District Elections and Council Term Limits
 Water and Sewer Infrastructure Maintenance and Rate Studies  Bayhill Specific Plan and Google (YouTube) Campus Expansion  Fiber-to-the-Home in Large Multi-Unit Developments
 Pending sale of the City-Owned Vacant Lot at The Crossing oDealership Approval
 Reimagining Tanforan

GENERAL FUND BUDGET
8 FY2023
-
24 GENERAL FUND OPERATING BUDGET
9 • Primary source of funding to support most of the services commonly associated with local government
 Police and Fire services, recreation, general administration, parks and other City services and operations
• General Fund Budget projects approximately…
 $64.9 million in revenues
 $66.1 million in expenditures
 Use of $1.2 million General Fund balance
FY2023
-
24 GENERAL FUND OPERATING BUDGET
10 • Summary of Budgeted General Fund revenues and expenditures

General Fund Summary
FY2022-23
Amended
Budget
FY2022-23
Estimated
Actual
FY2023-24
Recommended
Budget
Beginning Fund Balance $15,292,867 $15,292,867 $11,979,029 Revenue 56,680,875 57,137,821 64,922,570
Expenditure 60,162,636 60,451,659 66,122,200
Surplus (Deficit) (3,481,761) (3,313,837) (1,199,630) Ending Fund Balance $11,811,106 $11,979,029 $10,779,399

GENERAL FUND REVENUES
11 • Taxes
 Property Tax
 Sales Tax
 Hotel/Motel Tax (TOT)
 Business License Tax
• Fees
 Vehicle License Fees (VLF)
 Card Room Fees
 Franchises Fees
• Use of Money and Property
• Transfers In and Other Revenues
• Departmental Revenue

GENERAL FUND EXPENDITURES BY DEPARTMENT
12 General
Administration
12%
Public Safety
53%
Public
Works
8%
Community
Development
6%
Community
Services
17%
Non-Departmental
2%
Transfer to Other
Funds
2%
General Fund Expenditures
• Department Expenditures
 11 Departments
• Compensation
 Salary
 Retirement
 Benefits
• Services and Supplies
• Capital
$66,122,200

GENERAL FUND ONGOING FINANCIAL PRESSURES
13 • Continue Fiscal Sustainability Project
• Revenue Enhancements during this Fiscal Year
 Short Term Residential Rentals
 Cannabis Business Tax
 Bayhill Specific Plan Area Development Impact Fee
 Street Sweeping and Catch Basin Waste Removal Fee
 Calculate a More Robust Vacancy Factor
• Continue to Manage Operations and Expenses

PERSONNEL SUMMARIES
14 PERSONNEL (FTE) POSITION SUMMARY
–

ALL FUNDS
15 280 FTE
Positions

ENTERPRISE FUNDS
16 ENTERPRISE FUNDS
17 • Four Enterprise Funds
 Water
 Sewer (Wastewater)
 Stormwater
 CityNet Services

INTERNAL SERVICE

AND OTHER FUNDS
18 INTERNAL SERVICE FUNDS
19 • Four Internal Service Funds
 Central Garage
 Building and Facilities
 Technology
 Self-Insurance
• Funded through an allocation charged to each user department and enterprise
• FY2023-24 allocation transfer is $7.2 million

OTHER FUNDS
20 • Other Funds
 Measure G
 American Rescue Plan Act (ARPA)
 Equipment Reserve
 Emergency Disaster Reserve
 Gas Tax
 Measure A Transportation Tax
 Street Special Revenue Fund
 Measure W Transportation Tax
 Police Asset Forfeiture
 Police Grant: Citizens Option for Public Safety (COPS)  Federal/State Grants
 Solid Waste / Recycling Fund
 Development Impact Fees
 In Lieu Fund: Park-in-Lieu and Below Market Rate (BMR) Housing in-Lieu  Area Agency on Aging
 Restricted Revenues
 City as Successor Housing Agency (former Redevelopment Agency)

MEASURE G
21 MEASURE G
22 San Bruno's Measure G is a one-half cent local sales tax that was passed by voters in November 2019 to address
services that residents have said are important,
including:
Increasing pothole and other street hazard repair Increasing ongoing street maintenance programs
Maintaining neighborhood police patrols
Attracting and maintaining local businesses
Maintaining city parks and playgrounds
Maintaining and repairing park structures for children and youth Measure G includes a citizens oversight committee.

MEASURE G
23 Measure G Recommendations for FY2023-24
Pavement Management (Street Rehab) $3,500,000
Sidewalk Repair Program (2021-22 Sidewalk) 19,182
Streetlight Pole Replacement Program (280,335)
Citywide Wildfire Mitigation 100,000
Total Proposed Uses $3,338,847

CAPITAL IMPROVEMENT PROGRAM
24 CAPITAL IMPROVEMENT PROGRAM (CIP)
25 • Designed to identify, plan, and develop projects using a long-term vision for the community’s facilities and infrastructure needs • Budget outlines work programs, project descriptions, and funding needed for projects to be undertaken in the next 5 fiscal years • FY2024-28 CIP identifies 95 funded and partially funded projects/programs organized into 8 categories over the next 5 years  $243.9 Million in capital investment programmed to assure rehabilitation, replacement, and improvement of City facilities and infrastructure
o $172.2 Million of this amount is the expected cost of scheduled improvements to the City’s water and sewer systems

CAPITAL IMPROVEMENT PROGRAM (CIP)
26 • 5-Year summary of total
capital plan
• Full 5-Year CIP
 $243 million
 105 projects
 Includes unfunded and
future year projects
• Current Year Funding
 $102 million
 95 projects
 Includes carryover funding
and new proposed
allocations

Project Categories Total Capital Plan
Water $98,730,566
Sewer 73,483,404
Stormwater 2,037,804
CityNet Services 73,157
Parks 9,961,238
Facilities 8,229,034
Streets 48,521,818
Technology 2,904,529
Total $243,941,550

DEPARTMENTAL SUMMARY
27 SUMMARY BY DEPARTMENT
–

ALL FUNDS
28 NEXT STEPS…
29 TIMELINE
30 DATES DESCRIPTION MEETING

START TIME
June 20 Budget Workshop #2 (CIP) 5:30PM
June 27 Budget Adoption (Public Hearing) 7PM
Next Steps…..

DISCUSSION AND QUESTIONS
31 THANK YOU
32 WASTEWATER RATE PROPOSAL FOR
FISCAL YEAR 2023-24 THROUGH 2027-28

CITY COUNCIL MEETING
JUNE 13, 2023

BOBBY MAGEE

INTERIM FINANCE DIRECTOR

AGENDA
I. Objective
II. Background
III. Rate Increase
IV. Tonight’s Recommended Action
V. Questions
2 OBJECTIVE
Hold Public Hearing and consider adoption of a resolution approving the proposed increase to wastewater (sewer) rates to be effective July 1, 2023 for Fiscal Year 2023-24 through 2027-28
3 PROPOSED SEWER RATE SCHEDULE:
5% ANNUALLY
4 PROPOSED SEWER RATES:

CUSTOMER DETAIL
5 Current
Sewer July 1 July 1 July 1 July 1 July 1
Rates 2023 2024 2025 2026 2027
Single Family Residential $32.27 $33.96 $35.74 $37.61 $39.59 $41.66 All Other Customers (Based on Water Meter Size)
Meter Size
3/4-inch $32.27 $33.96 $35.74 $37.61 $39.59 $41.66
1-inch 53.78 56.60 59.57 62.69 65.98 69.43
1-1/2 inch 107.57 113.20 119.14 125.38 131.95 138.87
2-inch 172.11 181.13 190.62 200.61 211.12 222.19
3-inch 322.70 339.61 357.41 376.14 395.85 416.60
4" & Larger 537.83 566.02 595.68 626.90 659.76 694.33

Proposed Wastewater Rates
Proposed Wastewater Rates Effective On or After

MONTHLY SERVICE CHARGES
Fixed monthly charge per account

6 Current
Sewer July 1 July 1 July 1 July 1 July 1
Rates 2023 2024 2025 2026 2027

Proposed Wastewater Rates
Proposed Wastewater Rates Effective On or After

Residential $12.37 $12.98 $13.61 $14.28 $14.97 $15.71
Commercial
C-1 Light Commercial $11.50 $12.05 $12.63 $13.23 $13.87 $14.53 C-2 Medium Commercial 12.37 12.98 13.61 14.28 14.97 15.71 C-3 Heavy Commercial 17.61 18.54 19.51 20.54 21.62 22.76 C-4 Special Commercial 22.86 24.11 25.42 26.81 28.27 29.82 Government 12.37 12.98 13.61 14.28 14.97 15.71 Industrial
I-1 Light Industrial $12.37 $12.98 $13.61 $14.28 $14.97 $15.71 I-2 Industrial Flow 8.88 9.27 9.68 10.10 10.54 11.01 COD per lb3 0.68 0.72 0.76 0.81 0.85 0.90 SS per lb 1.41 1.49 1.58 1.68 1.78 1.88

QUANTITY CHARGES
Billed per hundred cubic feet (hcf) based on customer classification PROPOSED SEWER RATES:

CUSTOMER DETAIL
REGIONAL SEWER RATE SURVEY:

EXISTING MID-RANGE RATES
7 PROJECTED10-YEAR REVENUE & EXPENSES
8Future Potential Rate Adjustments

HISTORICAL RATE COMPARISON
9 PROPOSITION 218 PROCESS
o Voter Initiative in 1996 amending California Constitution to place strict limits on cities’ power to impose fees for “property related services” o Proposition 218 process applies when imposing or increasing fees for utility services:
 Written notice by mail
 Public hearing at least 45 days after mailed notice
 At the public hearing, considering all responses against the proposed fee  If written responses against the proposed fees are presented by a majority of owners of property subject to the fee, the City cannot impose the fee10

PUBLIC HEARING
NOTICE
o City mailed out the notice of public
hearing on rates on April 28, 2023
o Proposed Sewer Rates effective on
July 1, 2023, and every July 1
st
through 2027
11 TONIGHT’S RECOMMENDED ACTION
Hold Public Hearing and consider adoption of a resolution approving the proposed increase to wastewater (sewer) rates for Fiscal Year 2023-24 through 2027-28
12 13

SOLID WASTE RATE PROPOSAL
FOR FISCAL YEAR 2023-24 AND

AGREEMENT AMENDMENT

CITY COUNCIL MEETING
JUNE 13, 2023

BOBBY MAGEE

INTERIM FINANCE DIRECTOR

AGENDA
I. Objective
II. Background
III. Rate Increase
IV. Agreement Amendment
V. Tonight’s Recommended Action
VI. Questions
2 OBJECTIVE
 Hold Public Hearing and Consider Adoption of a Resolution Approving the Fiscal Year 2023-24 Rates for Solid Waste Collection Services with Recology San Bruno
 Approve an Amendment to the Solid Waste Collection Services Agreement
3 BACKGROUND
4 BACKGROUND
 March 14, 2023: City Council took action to authorize the rates to be set by resolution
 April 11, 2023: City Council directs staff to provide 45-day notice about proposed rates
 April 17, 2023: Notices mailed to start 45-day period 5 FRANCHISE AGREEMENT
 Council approved New Franchise Agreement on September 27, 2022, effective January 1, 2023
 Agreement sets the amount for the annual scheduled rate increases on January 1, 2023, July 1, 2023, and July 1, 2024 6 RATE INCREASE
7 HISTORICAL RATE COMPARISONS -

RESIDENTIAL
8 Recology submitted a 29% increase
per Previous Franchise Agreement Rate increase from previous FY 22-23

6.35% Street Sweeping and
Catch Basin Waste Removal

PROPOSED RESIDENTIAL & COMMERCIAL

GARBAGE TOTER MONTHLY RATE
9 SELECT EXAMPLES
Type Current Rate Proposed Rate
July 1, 2023 Increase
Residential
16-gallon cart $21.81 $23.90 $2.09
20-gallon cart $26.74 $29.30 $2.56
32-gallon cart $34.49 $37.79 $3.30
64-gallon cart $68.98 $75.59 $6.61
96-gallon cart $103.47 $113.38 $9.91
Commercial
64-gallon cart $96.54 $105.79 $9.25
1-yard container $202.67 $222.09 $19.42
32 GALLON CART RESIDENTIAL RATE

COMPARISON
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
$50.00
$27.52
$29.83
$31.31
$32.93
$35.72
$36.99
$37.79
$38.86
$39.79
$41.43
$43.21
$45.04
$46.04
$47.64
32g Rate (July 1, 2023)
City
Average: $38.55
10 AGREEMENT

AMENDMENT
11 STREET SWEEPING & CATCH BASIN

WASTE REMOVAL
 The new franchise fee will account for costs
incurred by the City to collect solid waste through
street sweeping and catch basin waste removal
 Stormwater Fund currently running at a deficit
 Offset operating expenditures of street sweeping &
catch basin waste removal
 Cost allocation study prepared to calculate the
proportion that may be attributed to the collection
of solid waste generated within the City totaling
$798,993
12 PROPOSITION 218

PROCESS
13 PROPOSITION 218
 Voter initiative in 1996 amending California Constitution to place strict limits on cities’ power to impose fees for “property related services“  Proposition 218 process applies when imposing or increasing fees for solid waste collection services:
 Written notice by mail
 Public hearing at least 45 days after mailed notice
 At the public hearing, considering all responses against the proposed fee  If written responses against the proposed fees are presented by a majority of owners of property subject to the fee, the City cannot impose the fee 14 PUBLIC NOTICE
 Franchise Agreement requires rate
increase on July 1, 2023, for solid
waste collection services
 City mailed out the notice of public
hearing on rates on April 17, 2023
15 TONIGHT’S RECOMMENDED
ACTION
 Hold Public Hearing and Consider Adoption of a Resolution Approving the Fiscal Year 2023-24 Rates for Solid Waste Collection Services with Recology San Bruno and Approve an Amendment to the Solid Waste Collection Services Agreement between the City of San Bruno and Recology San Bruno to Incorporate a Street Sweeping and Catch Basin Collection Fee 16 17

PROPOSED RATE INCREASE
18 Sector 7/1/23
Residential 9.58%
Commercial & Debris Box 9.58%
Components of Increase 7/1/23
Scheduled Rate Increase 2.00%
Customer Billing 1.23%
Street Sweeping and Catch Basin Waste Removal 6.35%

9.58%

PROPOSED RATE ADJUSTMENT
FISCAL YEAR 2023-24
 New rates to take effect on July 1, 2023, if approved by City Council  Rate adjustment components:
 1.23% for customer billing by Recology
 6.35% for franchise fee for street sweeping and catch basin removal  2% for annual scheduled rate increase per the Agreement 19 MASTER FEE SCHEDULE

CITY COUNCIL MEETING
JUNE 13, 2023

PETER GILLI

COMMUNITY AND ECONOMIC DEVELOPMENT DIRECTOR
AGENDA
I. Objective
II. Background
III. Master Fee Schedule Update
IV. Tonight’s Recommended Action
V. Questions
2 OBJECTIVE
• Hold Public Hearing
• Adopt a Resolution Approving the Master Fee Schedule for Fiscal Year 2023-24
3 BACKGROUND
4 BACKGROUND
Priority Focus Area: Grow City Revenues to Assure On-Going Fiscal Stability and Economic Vitality
June 22, 2021 – City Council adopted:
• User Fee Cost Recovery Policy; and
• Updated User Fee Schedule (Willdan)

1. Cost Recovery

2. Phased Increases

3. Annual Indexing
5 MASTER FEE

SCHEDULE UPDATE
6 MASTER FEE SCHEDULE UPDATE
• Annual update
• Adjustments for Phased Increases (Willdan)
• Annual Indexing for Inflation
• Water and Sewer Capacity Charges, Fines and Penalties • New Fees – Recreation and Aquatic Center (RAC)
7 FEE EXAMPLE:

PHASED INCREASES (WILLDAN)
Business
Application Fee Original Fee 1st Year Fee
(FY 2021-22)
2nd Year Fee
(FY 2022-23)
3rd Year Fee
(FY 2023-24)
4th Year Fee
(FY 2024-25)
In-Town based
business $36 $50 $64 $78 $94
Out-of-town
based business $26 $66 $106 $146 $188
8 FEE EXAMPLE:

INDEXING FOR INFLATION
Business
Application Fee Original Fee 1st Year Fee
(FY 2021-22)
2nd Year Fee
(FY 2022-23)
3rd Year Fee
(FY 2023-24)
4th Year Fee
(FY 2024-25)
In-Town based
business $36 $50 $66 ($64) $84 ($78) TBD
Out-of-town
based business $26 $66 $110 ($106) $156 ($146) TBD
9 TIMING OF FEE CHANGES
• Effective date
• Benefit of July 1 effective date
• Interim Urgency Resolution
• Schedule
10 PROPOSED SCHEDULE
11 Adopt Resolution to update Master Fee Schedule, to be effective after 60 days (on August 12, 2023) June 13, 2023 Adopt Interim Urgency Resolution to provide a July 1 effective date (this resolution sunsets after 30 days unless extended) June 27, 2023 Effective Date Provided by Interim Urgency Resolution July 1, 2023 Extend Interim Urgency Resolution (which sunsets on July 27, 2023) July 25, 2023
TONIGHT’S

RECOMMENDED
ACTION
12 TONIGHT’S RECOMMENDED
ACTION
Hold a Public Hearing and Adopt a Resolution Adjusting the Master Fee Schedule
• Interim urgency resolution on June 27, 2023
13 14

Presented by Leslie Hatamiya, Executive Director
June 13, 2023
Annual Report & Budget Review
2 Recreation & Aquatic Center

3 Centennial Plaza Improvement Project
4 Community Day

5 Tanforan Memorial

6 SBPSD Field Trip Grant

7 Music Education Initiative

8 2022-2023 Community Grants Fund
$300,000 awarded
(incl. $100,000 from YouTube/Google.org)
23 programs funded

9 2022-2023 Community Grants

10 2023 Crestmoor Scholars
10 Scholarships Totaling $160,000
Scholars to Attend:

San Francisco State University ● UC Berkeley ● UC Davis ● UCLA ● UC Riverside ● UC Santa Cruz

11 Fundraising Analysis
 SBCF has standing in the community
 Indicators of untapped and under-tapped wealth in San Bruno
 Must identify the purpose of fundraising
 Fundraising feasibility assessment needed to measure
fundraising potential
 A negative to be perceived as simply a fundraising arm for the City
 Significant resources needed to invest in fundraising 12 Financial Snapshot
Summary
(rounded)
Total Initial Assets $70.5 million
Investment Gains Through 4/30/23 +$16.5 million
Donations and Other Income Through 4/30/23 +$1.5 million Total Funds Disbursed Through 4/30/23 -$52.0 million
Portfolio Value as of 4/30/23 $36.5 million
13 2023-2024 Budget
2022-2023
Projected
2023-2024
Budget

EXPENSES
Direct Program Expenses $2,535,000 $970,000
Direct Personnel Expenses 254,816 261,468
Non-Personnel Support Costs 167,610 195,591
TOTAL EXPENSES $2,957,426 $1,427,059
14 Direct Program Expenses
Program $
Crestmoor Scholarships $160,000
Community Grants Fund 300,000
Strategic Grants 500,000
Other Grants 10,000
TOTAL $970,000
15 2023-2024 Budget
2022-2023
Projected
2023-2024
Budget

OPERATING INCOME
Interest Income $68,706 $17,177
Restricted Donations 101,718 0
Miscellaneous Income 0 0
Subtotal Operating Income 170,424 17,177

TRANSFERS FROM INVESTMENTS
Quasi-Endowment 285,937 372,843
Strategic Pool 22,529,423 1,441,576
Liquidity-RAC 8,759,369 0
Subtotal Transfers from Investments 31,574,729 1,814,419 FUNDS AVAIL. FOR OPERATIONS $31,745,153 $1,831,596
16 Quasi-Endowment Cash Needs
Cash Needs $
Crestmoor Scholarships $185,000
Community Grants Fund 300,000
Quasi-Endowment Cash Needs $485,000
Minus Carry Forward from FY2022-2023 -113,310
Net Quasi-Endowment Cash Needs $371,690
Quasi-Endowment Payout (1.78%) $372,843
17 RAC Grant Payments
$
RAC Grants Balance to Pay $8,612,687
Funds in Liquidity Pool Reserved for RAC Grants $8,612,687 (includes $1.5M transferred in May 2023 for construction contingency) Additional Strategic Payout Needed for RAC $0
18 Strategic Pool Cash Needs
$
Strategic Grants
RAC Grants $8,612,687
Community Day 2023 30,000
Music Education Strategic Initiative 130,000
Centennial Plaza Improvement Project 500,000
Other Potential Strategic Grants – TBD 500,000
Other Grants 10,000
Strategic Cash Needs – Program $9,782,687
Strategic Cash Needs – Operating Costs $457,059
Total Strategic Cash Needs $10,239,746
19 Strategic Pool Payout
$
Total Strategic Cash Needs $10,239,746
Minus Carry Forward from FY2022-2023 -$8,880,994
Minus Operating Income -17,177
Plus Buffer +100,000
Net Strategic Cash Needs $1,441,576
Strategic Payout $1,441,576
20 SBCF Board Action
 Approved FY2023-2024 budget
 Approved FY2023-2024 Quasi-Endowment payout rate
of 1.78%, resulting in transfer of $372,843
 Approved transfer from Strategic Pool to Liquidity Pool of $1,441,576 to cover FY2023-2024 cash needs
 Directed Executive Director to submit budget to City
Council for approval

CONSIDER ORDINANCE AMENDING

MUNICIPAL CODE TO PROVIDE FOR

THE COLLECTION OF SEWER SERVICE

CHARGES ON THE COUNTY TAX BILL

CITY COUNCIL MEETING
JUNE 13, 2023

DARCY SMITH

ASSISTANT CITY MANAGER

BACKGROUND
• February 2023 - Study Sessions held with City Council to review Water and Sewer Rate Study Report and rate recommendations • Information presented on moving the collection of sewer service charges to the County property tax bills
• City Council provided direction to staff to return with additional information on this transition
2 BACKGROUND
• City currently bills customers via a combined bi-monthly utility bill • 18 agencies in San Mateo County collect sewer service charges on the property tax bill
• 4 agencies do not - Burlingame, Brisbane, Foster City, and San Bruno
• Millbrae in process of transitioning now
3 PROPOSED

ORDINANCE
4 PROPOSED ORDINANCE
5 • Ordinance would amend the City Municipal Code to allow the City Council to take future action in 2024 to collect sewer service charges for all parcels in San Bruno on the County property tax bills
• If approved, change in billing would be effective July 1, 2024 • Once added to the tax roll, the City sewer charges will be billed to the parcel owner and will be collected through the County tax collection system, then remitted to the City

STATE LAW AUTHORIZATION
6 • California Health and Safety Code 5470 et seq.
authorizes the City to collect the sewer service charges in the same manner and at the same time as payments
are made for property taxes for each property
• City must prepare an annual report listing the sewer
charges for each parcel and hold a public hearing with
public notice

BENEFITS TO THE CITY
7 • County guarantees payment for any charges collected on the tax roll – City receives 100% of sewer billings regardless of property tax payment delinquencies
• City will receive a more stable and guaranteed revenue source • Increased accuracy for sewer enterprise fund revenue
projections and expenditures

BENEFITS TO THE CITY
8 • Removes the administrative burden of billing and
collections from the City
• Help rebalance the workload by freeing up staff time from responding to customer billing inquiries and processing payments to prioritize more essential work
• Improved and more efficient service delivery
• Implements the City Council Priority Focus Area of “Grow City Revenues to Assure On-Going Fiscal Stability and
Economic Vitality” by ensuring 100% revenue capture

IMPLEMENTATION DETAILS
9 • Sewer charges currently paid by some tenants would
transition to being collected via tax bills paid by property owners
• County issues property tax bills due bi-annually
• One-year transition period to provides time for owners to plan accordingly to transition from bimonthly to biannual payments • County charges a small administrative fee for collecting charges on the property tax rolls
10 PROPOSED TIMELINE

NEXT STEPS
• If the City Council approves the introduction of the ordinance, the adoption of the ordinance would be scheduled as a consent calendar item at the next regular City Council meeting
• If adopted, the ordinance would go into effect 30 days after adoption
• Public outreach - Courtesy mailer, website updates, e-Newsletter updates, etc.
• Return to the City Council for authorization action in Spring 2024 11 TONIGHT’S RECOMMENDED
ACTION
Introduce, read by title only, and waive further reading of an Ordinance of the City of San Bruno Amending Title 10, Chapter

10.08 of the San Bruno Municipal Code to provide for the Collection of City Sewer Service Charges on the San Mateo County Tax Roll 12 13