San Bruno City Council
June 11, 2024

COMMUNITY PRIORITIES SURVEY

AND DIRECTION ON A GENERAL

OBLIGATION BOND
City Council
June 11, 2024
Alex D. McIntyre
City Manager
 Receive presentation on the 2024 Community Priorities Survey
 Provide direction on a potential ballot measure in the November 2024 General Election
2 OBJECTIVE

BACKGROUND
 City Council Ad Hoc Committee on Revenue Measure
 Vice Mayor Salazar & Councilmember Hamilton
 City Manager, City Attorney, Assistant City Manager, Chief Financial Officer, Management Analyst
 Professional services: Communications, Survey/Polling, Bond Council, Financial Analysis
 February 27, 2024 direction to pursue a General Obligation Bond analysis and $135,000 budget amendment for necessary services
 Committee recommendation to bring the survey results to Council
3  Receive presentation on the 2024 Community Priorities Survey
 Provide direction on a potential ballot measure in the November 2024 General Election
4 RECOMMENDATION

QUESTIONS
5 Recology Updates

Spring ‘24 Community Clean Up
Event Results
8am to 11am
19* Volunteers
381 Cars
61,900 lbs of
Garbage
2 Rows – all
commodities
Overnight
Dumping

Trend
24,000
31,000
64,000
57,980
63,720
43,220
31,300
61,900
Fall 2020 Spring
2021
Fall 2021 Spring
2022
Fall 2022 Spring
2023
Fall 2023 Spring
2024
Garbage
262 264
439
301
432
300 282
381
Fall 2020 Spring
2021
Fall 2021 Spring
2022
Fall 2022 Spring
2023
Fall 2023 Spring
2024
# of Cars

3,000 lbs.
of
PAINT
45 Appliances
20 Mattresses
2 Water Heater
12,252 lbs.
of
E-Waste
Spring ‘24 Community Clean Up
Fall 2024
Improvements
•
No C/D
•
Sample Pics
•
Call Office

Thank you

Few More Updates

Few More Updates
0 100
200
300
400
500
600
2021 2022 2023
Pickups

Annual Brochure
Drops June 11th
Recology San Bruno
CITY MANAGER’S
RECOMMENDED FY25 BUDGET

CITY COUNCIL
JUNE 11, 2024

AGENDA
• Setting the table
• FY25 Budget overview
• Next steps

FY25 BUDGET –

SETTING THE TABLE
ALEX D. MCINTYRE, CITY MANAGER
3 • Receive presentation on the City Manager’s
Recommender Budget for Fiscal Year 2024-25
(FY25)
• Provide direction for preparation of the City Council Adopted Budget for FY25
4 OBJECTIVE

BOTTOM LINE
• Balanced budget – maintains and expands services
• $288.8 million all funds, operating and capital
• 280 employees
5 BUDGET BUILDING BLOCKS
One-time money for
one-time
expenditures
Long range investments
in streets, parks, water,
sewer & technology
Cost-effective capacity increase for
fire, police, planning, building, and
public works services
City Council top priority initiatives
City Council adopted budget principles
6 CITY COUNCIL ADOPTED TOP PRIORITY

INITIATIVES
7 CITY COUNCIL’S FY25

TOP PRIORITY INITIATIVES
Assess the fiscal feasibility of the Transit Corridor Plan Conduct a Comprehensive Employee Classification and Compensation Study Finalize Downtown Park Improvement Plans: Centennial Plaza, Florida and Posy Parks Initiate Downtown Beautification Efforts: Greening, Banners, and Marquee Sign Stabilize CityNet’s Fiscal Sustainability
8 BUDGET HEADWINDS
9 FY25 BUDGET HEADWINDS
10 FY25
Positives
• Investment earnings
• Cannabis tax
• Reorganization
• Administrative
Services
• CityNet
FY25
Negatives
• VLF Property taxes
• ARPA wind down
• Inflation & general
economy
• Walmart.com sales
tax-sharing litigation
FY25
Unknowns
• Car dealership
• RAC finances
• State budget deficit
• Employee retention
& recruitment
• Labor agreement
negotiations

FUTURE BUDGET HEADWINDS
11 Positives
• Cannabis tax (full
year)
Negatives
• Timing of major
developments
(Tanforan, YouTube,
housing)
• VLF Property taxes
• Inflation & general
economy
Unknowns
• Unfunded
infrastructure
• Investment earnings
• Employee retention
& recruitment
• Labor agreement
negotiations

FY25 BUDGET OVERVIEW

NICK PEGUEROS, CHIEF FINANCIAL OFFICER
12 New fiscal year,
July 1st
Budget kickoff
• Oct – CIP
• Jan/Feb - Operating
February
• Budget principles
• Priority initiatives
• Budget forecast
• CIP preview
March
• CIP Study session
April
• Fee schedule
• Budget preview
May
• Budget publication
June
• Community presentation
• Council presentation
• Council adoption
FY25 Budget Process

ALL FUNDS
14 15
City Funds

FY25 ALL FUNDS EXPENDITURES
$288.8 MILLION
General Funds
27%
Special Revenue
Funds
6%
Debt Service Funds

0.47%
Capital Project Funds
18%
Enterprise Funds
45%
Internal Service
Funds
4%
FY25 ALL FUNDS
280 POSITIONS
City Council

5.0 City Manager & CityNet

20.5 Administrative Services
(Fin, HR, IT)

21.5 Community Development

16.0 Community Services

36.0 Fire

39.0 Police

71.0 Public Works

72.0 GENERAL FUND
18 FY25 GENERAL FUND REVENUES
$66.5 MILLION
Taxes
71%
Charges for
services
10%
Fines and
forfeitures
2%
Use of money and
property
Other
7%
Transfers In
3%
FY25 GENERAL FUND TAX REVENUES
$46.9 MILLION
Sales Taxes
30%
Business License
7%
Cardroom
Tax
7%
Hotel Tax
8%
Franchise Fees
4%
Excess ERAF
4%
In-Lieu VLF
11%
Other
8%
Secured
21%
Property Taxes
44%
FY25 GENERAL FUND EXPENDITURES
$66.5 MILLION
21 City Council

0.50% City Attorney
2%
City Manager's
Office
3%
Administrative
Services
6%
Police
33%
Fire
20%
Public Works
7%
Community
Services
11%
Non-Departmental
18%
FY25 GENERAL FUND EXPENDITURES
$66.5 MILLION
Salaries and
benefits
71%
Operating
11%
Transfers out
18%

RECOMMENDED BUDGET CHANGES

ALL FUNDS
• $0.34 million – Personnel
• $0.46 million – Supplies, Equipment, and Services
• $0.69 million – Capital Outlay
• $7.61 million – Use of One-time Revenue Reserve
• New Funds – Recreation & Aquatics Center (RAC) and
Community Development
• Budget book redesign/ update
23 pp. 13-16

GENERAL FUND

LONG RANGE FORECAST
24 FY25:
$(4.85) million FY29:
$ (9.2) million FY34:
$ (18.0) million
(50.0)
(40.0)
(30.0)
(20.0)
(10.0)
-

10.0 20.0

30.0 Lower estimate Upper estimate Mid-point estimate
$ millions
Fiscal Year

GENERAL FUND DEFICIT DRIVERS AND

BALANCING MEASURES
Amount
($ millions)
Description
$2.58 Loss of VLF property tax and baseline
revenue adjustments for one-time
activity

1.88 Personnel cost increases

0.39 Council top priority initiative and
election
$4.85 FY25 deficit
FY25 Budget Balancing Measures
25 Amount
($ millions)
Description
$2.88 Updated revenue estimates including
parking fund loan repayment

1.97 Reduced operating expenditures
using one-time revenue for one-time
expenditures
($4.85) Reduction to FY25 deficit
FY25 Deficit Drivers

GENERAL FUND RESERVES
($ MILLIONS)
Reserve
Estimated
beginning
balance,
7/1/24
FY25
Change
Plus/
(Minus)
Estimated
ending
balance,
6/30/25
Contingency reserve
$6.6 target
$10.9 $5.0 $15.9
Budget stabilization reserve
$13.3 target

13.8 0 13.8
One-time revenue reserve 9.6 (7.6) 2.0
Unassigned fund balance 0.8 0 0.8
Total $35.1 ($2.6) $32.5

OTHER FUNDS
27 FY25 SPECIAL REVENUE FUNDS
$16.80 MILLION
28 Fund Revenue
($ millions)
Expenditure
($ millions)
Recreation & Aquatics Center $4.46 $4.46
Community Development 4.64 4.18
Gas Taxes 2.25 1.62
Measure A 1.39 0.15
Other Special Revenue Funds 4.05 6.39
Total $16.79 $16.80
FY25 ENTERPRISE FUNDS CAPITAL
$129.23 MILLION
29 Fund Revenue
($ millions)
Expenditure
($ millions)
Parking $ 0.67 $ 1.18
Water Operating 18.60 12.03
Water Capital 6.31 48.96
Stormwater Operating 1.68 2.08
Stormwater Capital 4.55 5.01
Wastewater Operating 22.09 11.03
Wastewater Capital - 40.79
CityNet Services 8.73 8.15
Total $ 62.64 $ 129.23
FY25 BUDGET –

WRAP UP
ALEX D. MCINTYRE, CITY MANAGER
30 BOTTOM LINE
• Balanced budget – maintains and expands services
• $288.8 million all funds, operating and capital
• 280 employees
31 New fiscal year,
July 1st
Budget kickoff
• Oct CIP
• Jan/Feb Operating
February
• Budget principles
• Priority initiatives
• Budget forecast
• CIP preview
March
• CIP Study session
April
• Fee schedule
• Budget preview
May
• Budget publication
June
• Community presentation
• 6/11 Council presentation
• 6/25 Council adoption
Next Steps

OUR BUDGET TEAM
Audrey Afe-Tuufuli
Yu-Chiao Chao
Esther Garibay
Dan Jacobson
Henry Joves
Jeff Lichtenstein
Brian Liu
John Mercado
Ana Morales
Leslie Salazar
Anh Tran
Robert Wood
Galen Yusufzai-Boggs
Dan Zuniga
Executive & Management Teams
• Receive presentation on the City Manager’s
Recommender Budget for Fiscal Year 2024-25
(FY25)
• Provide direction for preparation of the City Council Adopted Budget for FY25
34 RECOMMENDATION
35 Presented by Leslie Hatamiya, Executive Director
June 11, 2024
Annual Report & Budget Review
2 Recreation & Aquatic Center

3 Centennial Plaza Improvement Project

4 Downtown Beautification Projects

5 Narita Sister City Delegation Visit Grant

6 Supporting Our Public Schools

7 2023-2024 Community Grants Fund
$300,000 awarded
(incl. $100,000 from YouTube/Google.org)
26 programs funded

8 2023-2024 Community Grants
Grantee Project/Program Grant Amount
American Association of University Women North Peninsula Chapter Tech Trek Science Camp for Girls $5,000
Art in Action Providing Ongoing Arts Education to San Bruno Students $12,000 CASA of San Mateo County Serving San Bruno Foster and Juvenile Justice Youth $15,000 Catalino Tapia Scholarship Foundation EduPath for Scholars in San Bruno $10,000 City of South San Francisco Project Read's Learning Wheels On the Road to Success $6,000 CORA (Community Overcoming Relationship Abuse) Crisis Support Services for San Bruno Victims/Survivors of Domestic Violence
$25,000
Each Green Corner Living Campus - Food Explorers Program $12,500 Junior Achievement of Northern California, Inc. Inspiring Economic Empowerment for San Bruno Youth $7,500 LifeMoves Homeless Outreach Team Supporting San Bruno Residents $12,500 Mindful Life Project Mental Health and Wellness Programming for Belle Air Elementary and Allen Elementary
$20,000
Mission Hospice & Home Care, Inc. Free Drop-in Grief Support at the San Bruno Senior Center $5,000 Music for Minors, Inc. SBPSD In-School Music Education Program $15,000 Partners and Advocates for Remarkable Children and Adults Family Support Services $5,000 Renaissance Entrepreneurship Center Building Economic Vibrancy in Downtown San Bruno $12,500 San Bruno Community Gardens Inc Community Garden Capital Improvement Project $15,000 San Bruno Education Foundation Parkside Washington, DC, Trip Scholarships $16,500 San Bruno Lions Foundation Holiday Food Baskets $7,000
San Bruno Lions Foundation Santa for Special Students $5,000 San Mateo County Community College District Bay Area Entrepreneur Center of Skyline College's Accelerate Fellowship $15,000 San Mateo Union High School District Capuchino Summer Bridge Program Expansion $15,000 Second Harvest of Silicon Valley Alleviating Hunger In San Bruno $15,000 Sonrisas Dental Health, Inc. Adult Access to Care Program $15,000 StarVista Crisis Intervention and Suicide Prevention Program School Presentations $10,000 The Legal Aid Society of San Mateo County HomeSavers $10,000 The Lowen Soccer Club Soccer Scholarships $6,000
Upward Scholars Promoting Economic Mobility for Adult Immigrants in San Bruno $7,500 TOTAL $300,000
9 2024 Crestmoor Scholars
10 Scholarships Totaling $160,000
Scholars to Attend:

San Francisco State University ● UC Berkeley ● UCLA ● UC San Diego ● UC Santa Cruz

10 Post-RAC Strategic Planning
 Revisiting SBCF’s program and investment strategies after RAC facility project grants fully disbursed
● Starting FY2025-2026
● Net assets likely to be ~$25M
 Examining two paths:
● Spending down remaining funds over an extended period of time (e.g., 20 years
● Spend down remaining funds in short term (particularly on “legacy” project(s))
 Endowment in perpetuity model set aside
 Strategic planning process on hold
● Waiting for City of San Bruno and SBPSD to make decisions on larger capital projects that could serve as a “legacy” project
● Will probably restart in late 2024/early 2025
11 Financial Snapshot
Summary
(rounded)
Total Initial Assets $70.5 million
Investment Gains Through 4/30/2024 +$19.1 million
Donations and Other Income Through 4/30/2024 +$1.9 million Total Funds Disbursed Through 4/30/2024 -$60.3 million
Portfolio Value as of 4/30/2024 $31.2 million
12 2024-2025 Budget
2023-2024
Projected
2024-2025
Budget

EXPENSES
Direct Program Expenses $812,500 $2,975,000
Direct Personnel Expenses 267,701 274,606
Non-Personnel Support Costs 143,579 194,733
TOTAL EXPENSES $1,223,780 $3,444,339
13 Direct Program Expenses
Program $
Crestmoor Scholarships $165,000
Community Grants Fund 300,000
Strategic Grants 2,500,000
Other Grants 10,000
TOTAL $2,975,000
14 2024-2025 Budget
2023-2024
Projected
2024-2025
Budget

OPERATING INCOME
Interest Income $17,177 $0
Donations 102,700 0
Miscellaneous Income 30,000 0
Subtotal Operating Income 149,877 0

TRANSFERS FROM INVESTMENTS
Quasi-Endowment 372,843 352,218
Strategic Pool 850,000 3,030,152
Subtotal Transfers from Investments 1,222,843 3,382,370 FUNDS AVAIL. FOR OPERATIONS $1,372,720 $3,382,370
15 Quasi-Endowment Cash Needs
Cash Needs $
Crestmoor Scholarships $172,500
Community Grants Fund 300,000
Quasi-Endowment Cash Needs $472,500
Minus Carry Forward from FY2023-2024 -120,553
Net Quasi-Endowment Cash Needs $351,947
Quasi-Endowment Payout (1.64%) $352,218
16 RAC Grant Payments
$
RAC Grants Balance to Pay as of 4/30/2024 $2,245,159
RAC Grants Expected to be Paid by 6/30/2024 $1,655,659
Expected RAC Grants Balance to Pay at 6/30/2024 $589,501 Funds in Liquidity Pool Reserved for RAC Grants $589,501 Additional Strategic Payout Needed for RAC $0
17 Strategic Pool Cash Needs
$
Strategic Grants
RAC Grants $589,501
Centennial Plaza Improvement Project 377,493
Downtown Beautification Initiative 350,000
Other Potential Strategic Grants – TBD 2,500,000
Other Grants 10,000
Strategic Cash Needs – Program $3,826,994
Strategic Cash Needs – Operating Costs $469,339
Total Strategic Cash Needs $4,296,332
18 Strategic Pool Payout
$
Total Strategic Cash Needs $4,296,332
Minus Carry Forward from FY2023-2024 -$1,366,181
Minus Operating Income -0
Plus Buffer +100,000
Net Strategic Cash Needs $3,030,152
Strategic Payout $3,030,152
19 SBCF Board Action
 Approved FY2024-2025 budget
 Approved FY2024-2025 Quasi-Endowment payout rate
of 1.64%, resulting in transfer of $352,218
 Approved transfer from Strategic Pool to Liquidity Pool of $3,030,152 to cover FY2024-2025 cash needs
 Directed Executive Director to submit FY2024-2025
budget to San Bruno City Council for approval

APPROVE SOLID WASTE RATES
EFFECTIVE JULY 1, 2024
City Council
June 11, 2024
Nick Pegueros
Chief Financial Officer
 Conduct Public Hearing on 7.65% rate increase
from Recology San Bruno
 Adopt a Resolution establishing the solid waste
rates effective July 1, 2024 for Fiscal Year 2024-25
(FY25)
2 OBJECTIVE

BACKGROUND
 20-year franchise agreement effective January 1, 2023  Agreement includes 3 types of rate reviews:
 Negotiated: FY24, FY25
 Interim: FY26
 Detailed: FY27
 Adopt the FY25 rates already agreed to in the Franchise Agreement
3 SAMPLE PROPOSED RATES
4 COMPARATIVE RATES
5 HISTORICAL RATE CHANGES
6 RATE SETTING PROCESS
7  Conduct Public Hearing on 7.65% rate increase
from Recology San Bruno
 Adopt a Resolution establishing the solid waste
rates effective July 1, 2024 for Fiscal Year 2024-25
(FY25)
8 RECOMMENDATION

QUESTIONS
9 SEWER SERVICE CHARGE

COLLECTIONS ON THE PROPERTY

TAX ROLL
City Council
June 11, 2024
Nick Pegueros
Chief Financial Officer
 Conduct Public Hearing on collection of the Fiscal Year 2024-25 (FY25) sewer service charges with property
taxes
 Adopt a Resolution ordering the collection of sewer
charges for FY25
2 OBJECTIVE

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
 May 9, 2024 notification to property owners
3 PROCESS
 Fiscal Year 2024-25 Sewer Service Charge Levy Report
 Best practice among San Mateo County Cities
 Charge listed by Assessor’s Parcel Number and site address  2024 average water consumption in winter
 July 1, 2024 rates
 Income qualified rate reductions applied
 Adjustments for suspected water leaks
 Excludes master-metered homeowners’ associations with greater than 100 parcels
4 REMAINING TIMELINE
5  Conduct Public Hearing on collection of the Fiscal Year 2024-25 (FY25) sewer service charges with property
taxes
 Adopt a Resolution ordering the collection for FY25
6 RECOMMENDATION

QUESTIONS
7 AMENDMENTS TO THE JULY 1, 2024

USER FEE SCHEDULE

CITY COUNCIL
JUNE 11, 2024
• Conduct Public Hearing on User Fee Schedule
amendments effective July 1, 2024
• Adopt a Resolution Amending the User Fee Schedule
• Direct staff to compile and publish a Master Fee
Schedule
2 OBJECTIVE

BACKGROUND
• July 1, 2024 User Fee Schedule adopted April 23, 2024 • 4th year of rate increases from the 2021 Wildan study • Indexed fees for inflation
• Fee updates for new or modified services
• No action on fees in the Appendices

APPENDICES
• Fees not applicable to annual User Fee Schedule review:
• CityNet rates – set administratively
• Water and Wastewater rates – 5-year rate structures adopted in 2023
• Stormwater and Business Taxes – Require voter approval • Fees requiring annual review or updates:
• Gambling club tax
• Parking penalty and fine forfeitures
• Water and wastewater capacity charges
• Water and wastewater service charges, fines, and penalties 4

NEW FEES
• Payment transaction surcharge – 2%
• Applicable to RAC and Community Development transactions • Not applicable to water, wastewater, or CityNet
• Parks & Recreation rentals, program, and miscellaneous fees 5 • Conduct Public Hearing on User Fee Schedule
amendments effective July 1, 2024
• Adopt a Resolution Amending the User Fee Schedule
• Direct staff to compile and publish a Master Fee
Schedule
6 RECOMMENDATION

QUESTIONS
7