FY 2023-24
Mid-Year
Budget
Update
February 20, 2024
1 Citywide Revenues
General Fund
53%
Sewer Fund
29%
Construction
Services Fund
3%
All Other
Funds
15%
2023-2024 Adopted Budget
$296 Million
Citywide Revenues - all funds
1 Citywide Operating Expenditures
General Fund
$157.5
66%Sewer Fund
$56.5
24%
Construction
Services
Fund
$12.5
5%
All Other
Funds
$12.6
5%
(in million)
2023-2024 Adopted Budget
$239 Million
Citywide Operating Exp. - all funds
2 General Fund Overview (in millions)
Account Type
2023-24
Amended
Budget
2023-24
Mid-Year
Projection
Variance
Total Revenues $159.3 $161.3 $2.2
Total Expenditures 176.5 169.5 (7.1)
Net ($17.2) ($8.0) $9.3
3 General Fund Historical Trend
-
20 40
60 80
100
120
140
160
180
2016-17
ACTUALS
2017-18
ACTUALS
2018-19
ACTUALS
2019-20
ACTUALS
2020-21
ACTUALS
2021-22
ACTUALS
2022-23
ACTUALS
2023-24
Estimates
Millions
Operating Expenditures Contribution to CIP Revenues
4 Major General Fund Revenues
Property Tax
$78.4
49%
Sales Tax
$29.9
19%
Prop Transfer Tax
$7.0
4%
TOT
$5.3
3%
All Other
$40.9
25%
2023-24 Mid-Year Projection (in millions)
5 General Fund – Property Tax
$0
$10
$20
$30
$40
$50
$60
$70
$80
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Estimates
PROPERTY TAX (IN MILLIONS) $78.4 mil.
6 Two Uncertainties:
• Housing Market
• High interest rates
• Assessed values (AV) growth
• VLF Shortfall
• Long-term concern
General Fund – Property Tax
7 AV Growth
Avg. over past 12 years 6.9%
2023-24 5.5%
2024-25 (est.) 3.0%
Property Tax in-lieu VLF Shortfall
11.8 7.5
11.7 10.7
8.7 9.3 8.5 7.1 5.5 4.0
0.5 5.7
1.9 4.1 6.7 6.7 8.2 10.2 12.5 14.8
-
2 4
6 8
10 12
14 16
18 20
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Forecast
FY 2026
Forecast
FY 2027
Forecast
FY 2028
Forecast
FY 2029
Forecast
Millions
VLF Shortfall History and Projection (in millions)
VLF Available VLF Shortfall
8 Property Tax in-lieu VLF (VLF)
San Mateo
County filed
claim in August
State released
proposed
budget
Letter to State
Representatives
VLF Shortfall
9 General Fund – Sales Tax
$29.9 mil.
$-
$5
$10
$15
$20
$25
$30
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Estimates
SALES TAX (IN MILLIONS)
Local 1% Sales Tax (including Prop 172) Measure L/S
10 General Fund – Property Transfer Tax
$0
$2
$4
$6
$8
$10
$12
$14
$16
PROPERTY TRANSFER TAX (IN MILLIONS)
$7 mil.
11 General Fund – TOT
$0
$1
$2
$3
$4
$5
$6
$7
$8
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Estimates
TRANSIENT OCCUPANCY TAX (IN MILLIONS)
$5.3 mil.
12 General Fund Expenditures (in millions)
14 13
Account Type
2023-24
Amended
Budget
2023-24
Mid-Year
Projection
Variance
Total Expenditures 176.5 169.5 (7.1) General Fund Balance (in millions)
GENERAL FUND 2022-23
ACTUALS*
2023-24
MID-YEAR
PROJECTION
VARIANCE
Beginning Fund Balance 111.5$ 117.9$ -$ Total Revenues 165.9 161.5 2.2 Total Expenditures 159.5 169.5 (7.1) Net 6.4 (8.0) 9.3
Ending Fund Balance 117.9$ 109.9$ 9.3$ *preliminary
14 General Fund Balance (in millions)
GENERAL FUND 2022-23
ACTUALS*
2023-24
MID-YEAR
PROJECTION
Up (Down) $
25% Operating Reserve 36.8$ 39.4$ 2.6$ Housing Reserve 4.8 5.9 1.0 Committed to CIP 8.3 8.3 - Rainy Day Reserve 68.0 56.3 (11.6) Ending Fund Balance 117.9$ 109.9$ (8.0)$ *preliminary
15 General Fund Balance
$-
$20
$40
$60
$80
$100
$120
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Estimate
GENERAL FUND BALANCE (IN MILLIONS)
16 $109.9 mil.
General Fund Challenges
18 17
General Fund Challenges
• Costs of providing essential city services
• Fund long-term, legally-obligated
liabilities
• Maintain and repair city facilities and
provide for infrastructure needs
• Advance longer-term financial health
Costs to
Provide City
Services
Long-Term
Obligations
City Facilities
&
Infrastructure
Revenues
Construction Services Fund (in millions)
Account Type
2023-24
Amended
Budget
2023-24
Mid-Year
Projection
Variance
Total Revenues $8.8 $9.2 $0.4
Total Expenditures 12.5 11.7 (0.8)
Transfers Out 5.5 5.5 -
Net ($9.2) ($8.0) $1.2
Beginning Fund Balance 32.6 32.6 -
Ending Fund Balance $23.4 $24.6 $1.2 18
Sewer Fund (in millions)
Account Type
2023-24
Amended
Budget
2023-24
Mid-Year
Projection
Variance
Total Revenues $86.2 $88.2 $2.0
Total Expenditures 56.9 52.5 (4.4)
Transfers to CIP 55.8 55.8 -
Net ($26.5) ($20.1) $6.4
Unrestricted Fund, Beginning 164.0 164.0 -
Unrestricted Fund, Ending $137.5 $143.9 $6.4 19
Q&A
Karen Huang
Finance Director
[email protected]
650-522-7110