San Mateo County Mosquito
and Vector Control District
Casey Stevenson
Operations Director
Our Work
(Integrated Pest Management)
92 26 1320 17
12 Mills
Field
San
Bruno
Park
green
belts
City of San Bruno | Fiscal Y ear 2026 -27
Review of Recology San Bruno Cost -Based R ate A ppl i cati on Prepared by Jordan Muratsuchi & Scott Hanin
R3 Consulting Group, Inc.
June 9, 2026
Solid Waste Rate
Adjustment Review
Ensure Recology's rate application
is mat he mat ically corre ct and
aligned with the Franchise
A greement methodol ogy.
Identify and implement
recommendations to ensure
requested adjustments
appropriately compensate for
actual service costs.
Ve rify all mat e rials comply wit h
established procedures and state
regulatory mandates, including SB
1383.
ENGAGEMENT OBJECTIVES
Calculation
Verification
Cost Adjustments Compliance Review
2 Rate Application
Submi tted
by Recology
Comprehensi ve R evi ew
by R3
R eport I ssued
to Ci ty Staff
Public Hearing &
Presentati on to
Cit y Council
New R ates
Effecti ve Date
RATE REVIEW TIMELINE
Jan 30, 2026 Feb - Mar 2026 Apr 6, 2026 June 9, 2026 Jul 1, 2026 3 METHOD
4 Cross-verified Recology’s rate application against audited financial statements. Verified that "Actuals" from the base year serve as the mathematical foundation for the rate year
projections.
Financial Reconciliation
Indexing & Escalation
Applied CPI -U and the Water, Sewer, and Trash (WST) index for industry -specific trends, which averaged approximately 4.9% annually.
Performed a multi -factor audit of General & Administrative (G& A) ex penses. Real l ocated costs betw een f ranchi sed Ci ty serv i ces and "Outside City Limits" accounts to ensure equitable
distribution.
Allocation Analysis
Operational Validation
Analyzed quarterly tonnage records and disposal weight tickets.
Normalized revenue data by isolating one -time debris box surges from re curring re s ide ntia l/comme rcia l ba s e line s .
6.91%
RECOMMENDED INCREASE
Following a rigorous inde pe nde nt re vie w, R3
adjust e d Re cology's init ial re que st of 7.47%
down to 6.91% .
This adjustment balances the operational needs of the
service provider with the financial impact on San
Bruno ratepayers while maintaining high- quality solid
waste and diversion services.
RECOMMENDED RATE ADJUSTMENT
Refined Recommendation
5 7.47%
Updated General &
Administ rat ive allocat ion fact ors
for Cit y vs. "Out side Cit y Limit s"
servi ces. R esul ted i n a -1.13%
rate impact.
Applied a 4 -year average for repairs,
legal, and subcontractors instead of a
single ye ar spike . Re sult ed in a -
0.64% impact .
Adjusted for one -time debris box
revenue spi kes rel ated to the
Google campus construction.
Resulted in a +1.21% impact .
SUMMARY OF ADJUSTMENTS
G&A Reallocation Smoothing Costs Revenue
Normalization
6 Cost Category FY 27 Proposed FY 27 Revised Variance L abor Related Costs $6,475,537 $6,555,740 +$80,203
V ehi cl e R el ated Costs $1,477,002 $1,418,036 -$58,966 Fuel and Organic Processing $1,260,949 $1,260,949 $0
Depreci ati on and I nterest $968,758 $865,420 -$103,338 Ci ty Fees $2,727,279 $2,695,248 -$32,031
Other Costs / Profit $3,557,519 $3,377,823 -$179,696
Tot al Requirement $17,852,886 $17,559,058 -$293,828
DETAILED EXPENSE PROJECTIONS
7 TOTAL ADJUSTMENT 6.91%
DRIVERS O F THE 6 .9 1% INC REAS E
L abor costs remain the primary driver, reflecting industry -wide trends in wages and benefits. 8 Most San Bruno residents will see a monthly impact between $2.24 and $5.78.
Cont ainer Size Current Rate ($/ mo) Proposed Rate ( $/mo) Monthly Change 20- Gallon Cart $32.45 $34.69 +$2.24
32- Gallon Cart ( Standard) $41.85 $44.74 +$2.89
64- Gallon Cart $83.71 $89.49 +$5.78
96- Gallon Cart $125.55 $134.23 +$8.68
RESIDENTIAL RATE IMPACT
9 To comply with Proposition 218, the City prepared and mailed public notices to affected property owners and customers more than 45 days prior to tonight's public hearing regarding the proposed solid waste rates.
The notice process is a standard legal requirement for all California jurisdictions proposing adjustments to property-related service rates, including solid waste collection services.
PROPOSITION 218
10 RESIDENTIAL RATE COMPARISON
11 City 32g R ate
(M onthly) Serv iced B y
Hillsborough $ 75.15 Recology
At h e r t o n $ 66.08 Greenwaste
M enlo Park $ 58.64 Recology
San Carlos $ 52.53 Recology
Pacifica $ 51.58 Recology
Be lm o n t $ 49.66 Recology
M illbrae $ 46.92 SSF Scavenger
Bris b a n e $ 46.71 SSF Scavenger
San M ateo $ 45.93 Recology
Mo n t a r a $ 45.56 Recology
South San Francisco $ 45.14 SSF Scavenger
San B runo (Proposed) $ 44.74 Recology
Foster City $ 42.64 Recology
B urlingame $ 38.62 Recology
E l Granada $ 37.42 Recology
A verage (including SB ) $ 49.82
Thank you for your time
R3 Consulting Group, Inc.
Jordan Muratsuchi & Scott Hanin
Questions & Discussion
12 Presented by Leslie Hatamiya, Executive Director
June 9, 2026
Annual Report & Budget Review
2 Community Investments Since 2016
COMMUNITY GRANTS FUND
$2.65 million
221 Community Grants
CRESTMOOR SCHOLARSHIP
$1.52 million
102 Crestmoor Scholars
STRATEGIC GRANTS
$63.75 million
San Bruno Recreation and Aquatic Center • Crestmoor Fields Project • Centennial Plaza Improvement Project • Downtown Beautification Initiative Grant • RAC Startup Programming and Outreach Grant • COVID-19 Relief Grants • Music Education Strategic Initiative • First Responder Effectiveness Strategic Initiative • Pedestrian Safety Strategic Initiative • Community Day • Tanforan Memorial • SBPSD School Transformation Grant • SBPSD Field Trip Grant • School Athletic Field Improvements Grant • San Bruno-Narita Sister City Program Grants • SBPSD Outdoor Education TOTAL 2016-2026: $69.92 MILLION
DESIGNATED QUASI-ENDOWMENT
$2 million
SBPSD Outdoor Education
3 Recreation & Aquatic Center
4 Downtown Beautification Projects
5 Narita Sister City Program Grant
6 Post-RAC Strategy
Spend down bulk of remaining net assets
on small number of final legacy projects
and wind down other programs
7 Crestmoor Fields Project
Original Commitment (2024): $3,400,000
Funding for Lights (2026): $1,952,400
Total Commitment: $5,352,400
8 Outdoor Education
$160,000 Strategic Grant
Funding
2025-2026: $60,000
2026-2027: $100,000
$2,000,000 Designated
Quasi-Endowment
Use investment income to provide
annual grant of ~$100,000
starting in 2027-2028
9 Fire Station No. 52
10 Financial Snapshot
Summary
(rounded)
Total Initial Assets $70.5 million
Total Investment Valued Added Through 4/30/2026 +$25.5 million Donations and Other Income Through 4/30/2026 +$1.9 million Total Funds Disbursed Through 4/30/2026 -$64.6 million
Total Assets as of 4/30/2026 $33.3 million
Total Liabilities as of 4/30/2026 -$6.3 million
Total Net Assets as of 4/30/2026 $27.0 million
Total Net Assets Not Including Outdoor Ed Quasi-
Endowment as of 4/30/2026
$24.9 million
11 2026-2027 Budget
2025-2026
Projected
2026-2027
Budget
EXPENSES
Direct Program Expenses (Strategic
Grants)
$2,112,400 $5,000,000
Direct Personnel Expenses 264,204 263,418
Non-Personnel Support Costs 116,048 135,162
TOTAL EXPENSES $2,492,652 $5,398,580
12 2026-2027 Budget
2025-2026
Projected
2026-2027
Budget
OPERATING INCOME
Donations $102,940 $0
Miscellaneous Income 0 0
Subtotal Operating Income 102,940 0
TRANSFERS FROM INVESTMENTS
Quasi-Endowment – Outdoor Ed 0 0
Strategic Pool 2,500,000 10,191,598
Subtotal Transfers from Investments 2,500,000 10,191,598 FUNDS AVAIL. FOR OPERATIONS $2,602,940 $10,191,598
13 Strategic Pool Cash Needs
$
Strategic Grants
Narita Sister City Program Grants $28,000
RAC Startup Programming and Outreach Grant 1,165,126
Crestmoor Fields Project Grant 5,352,400
Outdoor Education Grant 100,000
Other Potential Strategic Grants – Budgeted 5,000,000
Crestmoor Scholarship Payments 60,000
Strategic Cash Needs – Program $11,705,526
Strategic Cash Needs – Operating Costs $398,067
Total Strategic Cash Needs $12,103,593
14 Strategic Pool Payout
$
Total Strategic Cash Needs $12,103,593
Minus Carry Forward from FY2025-2026 -$1,911,995
Net Strategic Cash Needs $10,191,598
Strategic Payout $10,191,598
15 SBCF Board Action
Approved FY2026-2027 budget
Approved transfer from Strategic Pool to Liquidity Pool of $10,191,598 to cover FY2026-2027 cash needs
Directed Executive Director to submit FY2026-2027
budget to San Bruno City Council for approval
CITY OF SAN BRUNO · BUDGET PRESENTATION
Trimming at the Fringes STILL
No Longer Cuts It
City Manager's Recommended FY27 Budget · June 9, 2026
TODAY'S MEETING
Agenda
01 Setting the Table
Why we budget and what the FY27
budget delivers
02 Major Budget Components
Overview of budget and City Council adopted
initiatives
03 Budget Overview
All funds, General Fund: revenues,
expenditures, and risks
04 Capital Budget Overview
FY27 CIP program, deferrals, and priorities
05 Wrap-up
Questions and discussion
San Bruno • FY27 Recommended Budget 2
SECTION ONE
Setting the Table
Alex D. McIntyre
City Manager
FOUNDATIONS
Why do we prepare a budget?
A budget is more than numbers — it is a policy document that shapes every City service residents rely on
A one-year financial plan
Sets appropriations for July 1, 2026 – June 30, 2027
Council authorization
Approves payment of salaries and vendors at adopted service levels Priorities for our community
Defines what residents experience — parks, library, safety, streets Transparency for residents
A clear picture of revenues, costs, and reserves
San Bruno • FY2026-27 Budget
4 FY2026- 27 BUDGET PROCESS
Budget Milestones
Eight public meeting touchpoints from goal setting through the City Manager’s Recommended Budget JAN → JUN 2026
5 MONTHS • 8 MILESTONES
Jan 30
2026 City Council Goal Setting Session
Feb 10
2026 Council Adoption — FY27 Priority Initiatives and Budget Principles Feb 19
2026 Revenue Measure Oversight Committee
2026
Feb 24 FY25-26 General Fund Mid-Year Update
Mar 24
2026 Revenue Measure Oversight Committee feedback and Priority Initiative Discussion Apr 14
2026
Mid-year budget update, DIF Projects, & Priority Initiatives Discussion & Direction Apr 28
2026
FY27 Budget Preview & Forecast
Jun 3
2026
City Manager’s Budget Workshop
San Bruno • FY27 Recommended Budget 5
GUIDING PRINCIPLES
City Council Adopted Budget Principles
Twelve guiding principles for sound financial management — unchanged from prior years
REVENUE & COST
01 Pursue revenue enhancements and full
cost recovery for fee-based services
02 Maintain core services and
infrastructure aligned with Council
priorities
03 Define cost and timing of cash outlays
to allow investment of idle cash
04 Increase reserve funds annually as
funds become available
OPERATIONS & PEOPLE
05 Improve productivity through continual
review of City services
06 Manage loss of institutional knowledge
through succession planning
07 Invest in technology that drives
efficiency and productivity
08 Strengthen San Bruno’s standing as an
employer of choice
FINANCIAL MANAGEMENT
& COMMUNICATION
09 Incorporate vacancy salary savings into
the forecast
10 Promote long-term financial
sustainability — monitor unfunded
liabilities
11 Evaluate one-time revenues for highest
impact and best investment
12 Communicate the City’s financial
position transparently
San Bruno • FY27 Recommended Budget 6
FY27 TAKEAWAY
City Finances by the Numbers
THE HEADLINE
General Fund Balanced
with cuts
GENERAL FUND
SPENDING PLAN
$75.2M
ALL FUNDS SPENDING PLAN
$281M Total appropriations across all 47 City
funds
ALL - FUNDS FTES
265 8.0 vacant positions removed in FY27
San Bruno • FY27 Recommended Budget 7
LOOKING BACK
Key FY26 Accomplishments
Stabilized executive team
Key leadership roles filled
Clean-up San Bruno
Citywide cleanup launched
Successor labor agreements
MOUs across employee groups
Closure of CityNet
Long-term broadband service to community
Economic Development
Multi-year roadmap advanced
Capital project delivery
CIP work completed and underway
San Bruno • FY27 Recommended Budget 8
FY27 PRIORITIES
Initiatives That Advance Our Community
Five strategic investments in the FY27 Recommended Budget that move San Bruno forward Elevate San Bruno
Long-range economic strategy
Street Sweeping Review
Efficiency & regulatory review
Downtown Improvement
Improve downtown activity and aesthetics
Senior Center Remodel
Reaffirming our legacy
Catalyzing Innovation
Citywide software overhaul
San Bruno • FY27 Recommended Budget 9
ADVERSE REVENUE ACTIONS BY STATE
$20.6M+ Annual Revenue At Risks
The State is shaping the City’s fiscal future.
STATE ACTIONS THREATEN CITY REVENUE
San Bruno • FY27 Recommended Budget
VLF IN - LIEU
$7.0M
$3M loss in FY27
Potential additional loss
TAX SHARING
AGREEMENT
$8.0M
potential annual loss
+ One-time payment
EXCESS ERAF
$2.2M
potential annual loss
CARDROOM
$3.4M
potential annual loss
10 SUMMARY
Maintain services and deliver on
FY27 key objectives
All Funds performing as expected
General Fund balanced with cuts, Enterprise funds investing in capital Removal of 8 vacant positions &
Proactive reallocations
No layoffs, Code Enforcement, Administrative Services
Expenditure growth restraint & line-item
reductions
Targeted at 3% year-over-year & Operating budget reductions Continued investment in infrastructure
Roads, water, wastewater, stormwater, facilities
San Bruno • FY2026-27 Budget
11 IN SUMMARY
“
Trimming at the Fringes
STILL
No Longer Cuts It.
Our path forward for FY27
Budget is responsive to known threats and risks to City revenue Core services preserved
General Fund reductions made carefully
SECTION TWO
Major Budget Components
Joseph Toney
Assistant City Manager
CITY MANAGER'S RECOMMENDED
FY27 Budget — All Funds
$281M
All Funds
Spending Plan 265 All Funds FTEs
Police
68 FTEs
$24M
Patrol, Investigations, Traffic, Dispatch,
Special Assignments
Fire
37 FTEs
$15M
Suppression, Emergency Medical Services,
Fire Prevention
Community Services
36 FTEs
$17M
Library, Parks, Satellite Programs, Senior
Center, Recreation & Aquatic Center
Public Works
73 FTEs
$184M
Admin & Engineering, Streets, Utilities,
Stormwater, Internal Services, CIP
Council & Administration
32 FTEs
$34M
Council, City Attorney, CMO, Finance, HR, IT,
Internal Services, Debt Service
Community Development
19 FTEs
$7M
Building, Code Enforcement, Planning
San Bruno • FY27 Recommended Budget 14
CITY MANAGER'S RECOMMENDED
FY27 Budget by Fund Type
Total appropriations: $281M across 5 fund types
$81.6M
$13.7M
$129.4M
$43.3M
$13.2M FUND BREAKDOWN
General Funds
(Operating, One-time Revenue & Measure G)
$81.6M • 29.0%
Special Revenue
$13.7M • 4.9%
Enterprise Funds
$129.4M • 46.0%
General Capital Project Funds
$43.3M • 15.4%
Internal Service & Debt
$13.2M • 4.7%
San Bruno • FY27 Recommended Budget 15
CITY MANAGER’S RECOMMENDED
FY27 General Funds Budget
Three revenue streams supporting core services
TOTAL APPROPRIATIONS
$81.6M
Recurring revenue — 96% structural, 4% one-time
Operating
$75.2M · 92.2%
One-Time Revenue
$3.1M · 3.8%
Measure G
$3.3M · 4.0%
San Bruno • FY27 Recommended Budget 16
FY26 → FY27
Continuation of
FY26 Initiatives
Priorities already underway — momentum carrying into the new fiscal year.
SEVEN PRIORITIES
FACILITIES
Lighting Improvements
FACILITIES
City Property Analysis
FACILITIES
City Office Renovation
POLICY
Climate Action Plan
COMMUNITY
Clean-Up San Bruno
COMMUNITY
Joint Events
TECHNOLOGY
Online Permitting
San Bruno • FY27 Recommended Budget 17
FY27 PRIORITY INITIATIVE
Catalyzing Innovation – Software Overhaul
A single modern platform replacing fragmented legacy systems. No new funds required. 5 Unified
modules 1 system Single source
of truth
$2M funded
FINANCE / GL
Real-time financials
Live GL visibility for faster close and stronger
controls
PROCUREMENT
Streamlined buying
Automated POs and approvals reduce vendor
cycle time
HR / PAYROLL
Unified workforce data
One employee record across hiring, pay,
benefits, and time
BUDGET & REPORTING
Better decisions
Self-serve dashboards replace manual
workbooks
ASSET MGMT
Lifecycle visibility
Track infrastructure condition, maintenance,
and replacement planning
ERP
Citywide
San Bruno • FY27 Recommended Budget 18
FY27 PRIORITY INITIATIVE
Downtown Improvement Initiative
$0.35 million — General Fund (new funding request)
COMMUNITY
DEVELOPMENT
Downtown Zoning
Adjustments
Policy update
COMMUNITY
SERVICES
Two Public Art Projects
Public art program
COMMUNITY
SERVICES
Paseo Base Scope
Improvements
Up to $0.3M
PUBLIC WORKS
Photometric Study
Up to $50K
DOWNTOWN
$0.35M
4 projects
San Bruno • FY27 Recommended Budget 19
FY27 PRIORITY INITIATIVE
Elevate San Bruno
$2.8 million — CD Special Revenue Fund
Strengthen the
City’s Fiscal
Health
GROWTH
Make San Bruno more attractive for real estate investments POLICY
Amend land use, housing and economic development policies, standards and processes to support desired development
HEIGHT LIMITS
Successfully revise Ordinance No. 1284 by generating business and community support for these policy changes
INFRASTRUCTURE
Establish funding mechanisms for major public streetscape and infrastructure improvements
SERVICES
Establish funding mechanisms for ongoing service costs from new development
1 2
3 4
5 San Bruno • FY27 Recommended Budget 20
FY27 PRIORITY INITIATIVE
Reaffirming Our Legacy — Senior Center Remodel
$5.5 million total | $3.2M non-General Fund | $2.3M unfunded (grant requests pending) $5.5M
Total Project
$3.2M
Community Facilities DIF
$2.3M
Unfunded
WHY NOW
A long-overdue investment in a critical community asset.
Facility condition
Building systems and finishes have reached end of
useful life
Service growth
Senior population continues to expand — increased
demand
Equity & access
Modernized space supports inclusive, multi-
generational programs
San Bruno • FY27 Recommended Budget 21
FY27 PRIORITY INITIATIVE
Street Sweeping Program Review
$0.26 million — General Fund (new funding required). Targeted review of operational efficiency and regulatory considerations
PROGRAM
REVIEW
$0.26M
01 Routes &
Frequency
02 Service
Levels
03 Regulatory
Requirements
04Equity
Framework
REVIEW DIMENSIONS
01 Routes & Frequency
Evaluate route alignment and sweeping cadence by
neighborhood.
02 Service Levels
Determine cost-effective service level by area type.
03 Regulatory Requirements
Stay aligned with stormwater MS4 and clean water
mandates.
04 Equity Framework
Leverages San Mateo County Equity Assessment
Framework.
San Bruno • FY27 Recommended Budget 22
SECTION THREE
Budget Overview
Nick Pegueros
Administrative Services Director & CFO
STRUCTURE
Fund Accounting
A municipal budget is a portfolio of separate funds — each with its own revenue source, purpose, and restrictions 47 Distinct funds
Each tracked separately under
GASB fund accounting rules
6 General Funds; $80.4M, 182 FTEs
Operating ($74.2), reserves, Measure G, ARPA –Discretionary funds for core services 27 Special Revenue; $13.7M, 27.92 FTEs
Gas Tax, Measure A, grants — restricted use
5 Enterprise Funds; $129.4M, 42.93 FTEs
Water, Wastewater, Stormwater, Parking, CityNet — fee-supported 4 Capital Project Funds; $43.3M, 0 FTEs
Capital Improvement Program (CIP) appropriations; excluding Enterprise Fund CIP 5 Internal Service Funds & Debt Service; $14.2M, 19.6 FTEs Shared services and debt service
San Bruno • FY27 Recommended Budget 24
CITY MANAGER’S RECOMMENDED
FY27 Revenue by Category
General Fund and Other Funds combined — 8 categories, $199.7M total Charges for services $68.6M GF $8.5M · Other $60.2M
Taxes $55.8M GF $50.4M · Other $5.3M
Other revenue $36.0M GF $1.5M · Other $34.5M
Transfers in $11.9M GF $3.8M · Other $8.1M
Use of money and property $10.7M GF $5.1M · Other $5.6M Intergovernmental $8.1M GF $4.3M · Other $3.7M
Licenses and permits $7.1M GF $0.9M · Other $6.1M
Fines and forfeitures $1.4M GF $0.9M · Other $0.6M
TOTAL
$199.7M
General Fund
GENERAL FUND
$75.4M · 38%
Other Funds
OTHER FUNDS
$124.2M · 62%
San Bruno • FY27 Recommended Budget 25
CITY MANAGER’S RECOMMENDED
FY27 Expenditures by Department
General Fund and Other Funds combined — 8 departments, $148.5M total Public Works $51.3M GF $4.3M · Other $47.0M
Police $24.3M GF $23.2M · Other $1.1M
Non-Departmental $18.0M GF $13.9M · Other $4.1M
Community Services $16.9M GF $11.2M · Other $5.7M
Fire $14.9M GF $14.6M · Other $0.3M
Administrative Services $11.7M GF $4.1M · Other $7.6M Community Development $7.3M GF $0.6M · Other $6.7M
Council/Attorney/Manager $4.1M GF $3.4M · Other $0.7M TOTAL
$148.5M
General Fund
GENERAL FUND
$75.2M · 51%
Other Funds
OTHER FUNDS
$73.3M · 49%
San Bruno • FY27 Recommended Budget 26
CITY MANAGER'S RECOMMENDED
FY27 General Fund Budget
$75.4M
Revenue
$75.2M
Expenditures
$0.1M
Balanced Budget
Net surplus
GENERAL FUND REVENUE DRIVERS
Property Tax +4.9%, $0.8M
$17.4M total, 23% of GF
Sales Tax +1.3%, $0.3M
$19.4M total, 25% of GF
Intergovernmental – 41%, $3.0M
$49.0M total, 65% of GF
GENERAL FUND EXPENDITURE DRIVERS
Salaries & benefits +0%
$49.0M total, 65% of GF
New contracts offset by reallocations & 8 vacancies removed Does not include UAL ($9.3M); 5.2% increase
Internal Services +14.5%, $1.4M
$11.2M total; 15% of GF
CityNet dissolution $0.8M; Self-Ins. ISF $0.5M
San Bruno • FY27 Recommended Budget 27
CITY MANAGER’S RECOMMENDED
FY27 General Fund Revenue by Category — $75.4M
Taxes alone account for $50.4M — 67% of all General Fund revenue Each square = 1% of $75.4M General Fund revenue
$1.5M
1.1% Fines and forfeitures $0.9M
Parking citations, code enforcement, court fines
1.2% Licenses and permits $0.9M
Building, encroachment, business permits
2.0% Other revenue
Miscellaneous, reimbursements, donations
5.0% Transfers in $3.8M
Non-operating transfers from other funds
5.7% Intergovernmental $4.3M
State/federal aid, grants, shared revenue
6.8% Use of money and property $5.1M
Interest earnings, rents, leases
11.2% Charges for services $8.5M
Recreation, plan check, fire inspection, other fees
66.9% Taxes $50.4M
Property, sales, TOT, business license, UUT
San Bruno • FY2026-27 Budget 28
CITY MANAGER’S RECOMMENDED
FY27 General Fund Expenditures by Category — $75.2M
Salaries + Benefits = $49M; 65% of total expenditures
Each square = 1% of $75.2M General Fund
2.0% Supplies & Materials $1.5M
Office & operating supplies, materials
2.3% Other $1.7M
Elections, contingencies, dues, equipment
2.4% Maintenance & Utilities $1.8M
Facilities, streetlights, utilities
5.1% Professional Services $3.8M
Consulting, contractual, training
8.5% Transfers Out $6.4M
Non-operating transfers to other funds
14.6% Internal Service Charges $11.0M
ISF allocations, general admin charges
27.0% Benefits (incl. UAL) $20.3M
Pension $4.5M, UAL $9.3M, insurances $5.8M
38.2% Salaries $28.7M
Regular pay, overtime, part-time, temporary
San Bruno • FY2026-27 Budget 29
CITY MANAGER’S RECOMMENDED
FY27 General Fund Budget Balancing Measures
Six targeted actions close the General Fund gap — $2.45M total impact
TOTAL IMPACT
$2.45M
$1.50M
Vacant personnel reductions
3.0 Firefighters · 1.0 Police Officer · 2.0 Management Analysts · 2.0 Engineers 61%
8.0 FTEs
$0.35M
Code enforcement reallocation
Transition 2.0 FTEs from Police to Community Development Fund 14%
2.0 FTEs
$0.25M
Finance reallocation
Transition 2.0 FTEs directly to Water for utility billing activity 10%
2.0 FTEs
$0.17M
Police contract services
Contract services, maintenance, meetings & conferences, miscellaneous repairs and replacements 7%
Operating
$0.10M
Fire contract services
Contract services and operational adjustments
4%
Operating
$0.08M
Community Services reductions
Program and operational expenditure adjustments
3%
Operating
San Bruno • FY27 Recommended Budget 30
ADVERSE REVENUE ACTIONS BY STATE
$20.6M+ Revenue Risks
The State is shaping the City’s fiscal future
VLF IN - LIEU
$7.0M
potential annual loss
Phase I
$3.0M/yr
partial reduction — incorporated
FY27
Phase II
$2.5M/yr
if revenue limit districts flip to basic
aid (FY28+)
TRSA
$8M
potential annual loss
Ongoing
$8.0M/yr
$4M transferred to reserves
Repayment
$43–83M
one-time exposure; $43M +
$8M/yr collected
EXCESS ERAF
$2.2M
potential annual loss
Driver
Change in County’s
calculation methodology
may be required by State
Controller’s Office
CARDROOM
$3.4M
potential annual loss
Driver
State regulations may
impact gaming exposure
San Bruno • FY27 Recommended Budget 31
SECTION FOUR
Capital Improvement Program
Matthew Lee, P.E.
Public Works Director
CAPITAL IMPROVEMENT PROGRAM (CIP)
What is the CIP?
$138M multi-year investment in City facilities and infrastructure
THE PROGRAM
From streets and parks to water pipes
and IT software
The CIP is the City's investment plan to provide
infrastructure that support public services
Funded across multiple sources — General Fund,
enterprise funds, impact fees, grants, and dedicated tax measures
Streets & Roads; 20 Projects, $22M
Parks; 8 Projects, $6M
Water, Wastewater, Stormwater; 37 Projects, $96M
Facilities; 8 Projects, $11M
Technology; 5 Projects, $2M
San Bruno • FY2026-27 Budget 33
LOOKING BACK
Major Projects Delivered
San Bruno • FY2026-27 Budget 34
Posy Park Improvements
Parks Program – neighborhood park renewal
Parks Program – neighborhood park renewal
Florida Avenue Park
We STILL Love Paving!
Pavement Management Program
Huntington Cycle Track –
Segment 1
Streets program – reconstruction and
pedestrian improvements
Avenues 2-1, 2-2
Wastewater program – collection system
upgrade; Water program – improve reliability of
the water system
Acappella Well Project –
Phase 1
Replace groundwater well to improve water
supply reliability
LOOKING AHEAD
Major Projects Highlights
San Bruno • FY2026-27 Budget 35
Visible Infrastructure
Senior Center Renovation, Downtown
Improvements
Future Major Capital Efforts
Fire Station 52, Crestmoor Fields, Municipal
Svcs Center, Belle Air/Lions Field Park Plan
Clear Path Program
Improving sidewalks for safer, smoother, more
accessible paths for everyone
EV Infrastructure
Future-proofing City fleet operations with EV
charging infrastructure
Utilities and Streets
Crestwood Pump Station, Water Tank
Replacements, We Love Paving, Storm Drain
Condition Assessment
Catalyzing Innovation
Modernize enterprise systems, including PMIS,
CMMS, LMS and ERP, to improve efficiency,
project delivery, service, and data-driven decisions
for the future
SECTION FIVE
Next Steps & Thank Yous
Alex D. McIntyre
City Manager
PATH TO ADOPTION
Next Steps
01 June 9
Introduce FY27
Recommended
Budget
Staff presentation and
City Council discussion
and/or direction
02 By June 18
Prepare City
Council Draft
Budget
Staff incorporates
directed changes
03 June 23
CIP Public
Hearing, Budget
Adoption
Council formally adopts
the FY27 budget by
resolution
04 July 1
FY27 Begins
New fiscal year begins; all
FY27 appropriations
effective
San Bruno • FY2026-27 Budget 37
BUDGET TEAM
Thank You
This budget reflects the dedicated work of teams across the organization. With sincere thanks to:
CORE BUDGET TEAM
Ana Morales Ashley Crociani Dan Jacobson
Joanne dela Cruz Robert Wood Audrey Afe-Tuufuli
Mike Ku Henry Joves Brenda Calara
DEPARTMENT BUDGET MANAGERS
Trisha Ortiz Joseph Toney Peter Gilli
Brian Adam Jennifer Dianos
Lindsay Nieri Matt Lee Hae Won Ritchie
Dennis Bosch Steve Salazar Ross Shkuratov
Phil Woffenden Matt Lethin Jeremy
Brandenburg
Brent Schimek Travis Karlen Tim Wallace
Meghan Rosin
San Bruno • FY2026-27 Budget 38
Bill Mitchell
Esther Garibay
Recommendation
STAFF RECOMMENDS
Provide direction to staff
on the City Manager's Recommended FY27 Budget
San Bruno • FY2026-27 Budget 39
FOR DISCUSSION
Questions?
LEARN MORE
sanbruno.ca.gov/finance
SCAN QR CODE
FOR THE BUDGET BOOK
San Bruno • FY2026-27 Budget 40