Finance Management Subcommittee 04.21.25

Today, Friday, April 18th. Okay, I'm sorry. Thank you once again. Welcome, everyone, to Friday, April 18th. 2025 finance management subcommittee agenda meeting on the agenda first is Any public comment on non-agenda items? Seeing none, we will um segue over item number two at 25 26 budget review before I hand it over to Andy Wong. I did want to mention that we did receive some updated sales tax projections from Avenue this morning and our was talking to mayor or excuse me council member banalas before the meeting our numbers have kind of bounced up and down for 24-25 and happily they've bounced back up a bit. We originally budgeted 12,252000 Took a nosedive down to about 11.5. Mid-year, I think we budgeted 12 even and and now we're projecting for 24 25 About 400,000 more dollars 12,422,000. So a little good news So with that, turn it over to Andy. Thank you both. So good afternoon, everyone. Was our first slide here. Before I dive into the chart a lot of this start off by saying this, our next year's budget 2025-26 budget is currently in work in progress condition. So it's knowing where near completion. If I had to provide an estimate of the percentage completed, I would say about 25 a quarter completed. So therefore, the numbers we're presenting You are still work in progress and we wanted to have this committee have a chance to see how we're doing and in the next round of iteration or updates, we will have a much more closer in number to present to the committee on how we're doing for the next fiscal year. So that's it. Let's dive into it. So currently, we have received all of the departmental submissions And the revenue for departmental came back at around $12.9 million with 21% completed. And the personnel costs were still costs I'm working closely with HR on developing the personnel budget. And so that's why it's already showing 0%. Our capital expenditure is relatively complete, but there may be items that we needed further discuss with the department on their request. Last but not least, the operating expenditures were up 50% complete. So feeling pretty good. There are some more missing items. I will be listing them out in the next Slide. Thank you, sir. So if I were to group things up that these were the four categories of items that are currently missing from our budget. So payroll being the biggest component right now, around 41 to maybe $44 million in that range. Non-departmental revenues, expenditures, revenue from non-departmental could include sales tax. Motor vehicle packs. Fried tax fees etc expenditures would go along the lines of allocations. County's animal control costs etc and allocation for example will be fleet, building, maintenance, etc. And if I could jump in, sorry. Sure. Just give you some reference on why payroll is taking a little extra time. We've identified approximately a dozen physicians that you're recommending to be completely removed. That are filled at this time. We've also looked at about two dozen positions that are underfilled yes that will actually be moved to their proper current level in they'll be categorized correctly. That has caused, I think, a lot of times some Within our budget higher number or cost and so again we're almost The zero base from a salary standpoint. What's the true number? How many employees do we have? What's their real position what's their actual cost so that way we can go from that instead of having a $4 million attrition Let's get a lot closer so we have more exact data to work with. Thank you, Carol. And last but not least, the transverse in and out, those typically involves receiving fundings from other enterprise funds such as water sewage or other special revenue funds. And there are some transfer jobs For the most part, general fund will be receiving would yield a Surplus or positive inflow of cash from other banks. All right, we're going to dive into each section specifically in the next couple of slides, how we deviate the This chart is that for the for the first port of it will be departmental only and non-departmental is specifically I'll line it on the forest bottom and the last line on this line calculate the combined combination of departmental and non-departmental. So we can see here under the typically departmental revenues would come in at around 18.1 to $18.5 million. So with the first round of submission we have About $12.9 million, so roughly $5 million that has not been accounted for and personally I've already reviewed these numbers. Missing numbers are mainly contributed by CFDs, which is roughly $2.5 million already. Other transfer rates and from enterprise fund that's going to You quit about another $2 or $3 million. So overall, the majority of the departmental revenues are missing from just transversions and non-departmentalize you can see that's a big chunk of our total revenue. Those are sales tax franchise fees, property tax, both secure and unsecured, et cetera. Working closely With our consultant as well as performing internal projections on arriving at a good number to use wood And the next round of update would definitely have that in place. Are there any questions I can help answer? Great. Moving on to the personnel. As of now, it is shown blank. But again, in the next round we would have a much more clear picture of how, based on the position that we're authorized, how much it would cost, and how does that impact job offer. The expectation is all of this will be fully prepared and ready on Great, sir. Yes. Now, moving on to the capital expenditures, there are two departmental request was police they're requesting roughly $300,000 worth of offeating their 10 vehicles. And the other 100,000 has to do with canine caring and canine union caring providing care to those are are working on canine service docs And then on the other hand public works department is requesting a $400,000 street sweeper and this has to do with the general fund so we haven't had the chance to sit down with department heads to go through The conversation of why are we needing to purchase what other options do we have etc so for now that these are placeholders. Once we have a clear picture, we would provide an update. These two numbers may or may not be there in the next round. I think just in a larger context, I think it brought it up at our whole session, like really trying to understand fleet tableau asset management in terms of replacement and So I think I'll just throw that out there as we're… Not be there, but just really just understanding. Last year, a couple of years ago. Signed off on. A large purchase because of the backlog that we were having, things like that. So we're really just trying to understand in terms of just routinely what we're looking at in terms of expenditures for fleet maintenance are really just all capital assets. Agree, and that's something John and I had a discussion earlier today on understanding how much food is being subsided. Remember, the council's brought this up numerous times how many how much money on the big purchase is being set aside on a yearly basis Instead of waiting for surprise here it is. How do we manage that then? And so John was going to look into a little bit more of this within the free budget itself. We also created a task force internally to manage all the processes so that we didn't kind of repeat what happened. From justifying purchases all the way through how do we budget it into the online software Ear to year and where do we budget it? Do things stay the same and all that kind of stuff. So you've had one meeting and it was basically to talk about our scope but um Yeah, we have an internal task force with public works engineering, finance, and engineering CMO in there together. One or the other that we're looking at doing as well Much like the fleet maintenance. Internal service fund. Actually moving these funds out of the general fund into a capital acquisition fund so that it sets aside and you can build up This is something that we've also discussed. Thanks for everyone's input. Moving on to the last section will be operating expenditures. So you can see year over year operating expansion from department is roughly around that $12 to $13 million range this year. We're anticipating Looking at the overall CPI increase in the Bay Area, we're assuming probably somewhere between 2.5 to 3% increases On operating. So for now, it is currently not complete and we're going to closely examine each line item with department head If there is a request or a new request, we'll make sure that gets identified and shared with many Because for that, these are the numbers that we have currently have on hand. All of the departments have been told to live in the 24 actuals. And for the most part, pretty much everybody is I think the biggest challenge we'll have are probably the two or three larger departments where they have a certain cost center. Get on their control. They have to do that. But I know talking with the chief and then acutely aware of this and managing it with that expectation. And so on this last slide, I would like to share with the committee that there are certain costs that will be uncontrollable And these are just a few of the examples. So taking the MPA insurance coverage this year when we received our quote or premium quote, it is showing us that we would have around four 0.5 to 5% increase in creating to $246,000. And they're still working on developing or finalizing that premium rate we should be getting a final poll probably as we get closer to May. The second line item here will be the unfunded accrual liability, also known as UAL. Payments for CalPERS and this number here actually is pretty much set to in stone because we went on to CalPERS's website They have already released their information. Our impact to general fund is 800, $2,000 out of that $1.1 million increase. And most of it has to do with Increases with PD or police officers. And that is exclusive of the 15 or 16 billion they've lost so far in the last week or two. The trust. Yeah. What level is that funded at? It's we haven't we could take some of that and funded it We haven't used any of it. Thinking because we have to have CERBT, but that's the other than that i think that's got about Six million. 115 million. The last time I checked, I wanted to say that But I need to get back to you on those exact amounts and I'll have answers for you. I have an email with those balances. But I've got them. So yes, that is an option in tighter budgets to utilize those funds that the council want to Obviously, we're keeping those for any days or It's moving on to the next line, patient obligation bonds. This is a pain and that recurs on it as a reoccurring payment on an annual basis. Next year, 25, 26 our general fund impact and status is going to be increased to 172,000, out of which 112 will impact general fund. And last but not least, the county's animal control services had notified us that their preliminary round of increases were roughly 100,000. Previously our cost was sitting in around 820, 850. Next year, we're anticipating 930 to 970 in that range roughly 100,000 when adding all these increases together, the estimated total would be around $1.2 million alone. From these four categories or four line items Which represents about 2% of our revenues if we're in the mid-60s oh yeah And that concludes the budget update for 2526. Are there any questions I can help you with? Amy, if I could add it to our last moment here. I think most of those, keeping that sheet up, which is good, most of those are kind of expected, whether it's 5% for insurance, animal control has been going up about 100,000 a year the last couple of years. Pension obligation laws that we'd rather set them out so that it's not really a surprise the variable we get is really CalPERS. That's something both of your experience, you know that maybe a rather fun adventure. But, you know. What it leads to my conversations with the different department heads as they put together the budgets and Paul and Andy And you look at this you know that 800,000 is probably the one number we haven't really accounted for that we will find a way to obviously Control but there haven't been any in my conversations of, well, we've got a real problem here. So again, this is a so far a manageable budget that we are looking forward to putting all the numbers in i think the Salary changes are also going to have a more positive realistic impact. But we are looking forward to a very robust discussion with the council on May 5th on where we are. Thanks, sir. Were there any other questions? More questions. I know this is still being developed. Just want to know if there's such an opportunity before May 5th. Maybe the budget ad hoc to be able to review when you have the numbers before the council meeting. We will work on it. Yeah, we should be able to we've got two weeks. Empathetic? Are there any other questions on that item? Yeah. So number three coming up, the Public Works Grants update Alrighty, so our goal is to get a grant update by division or department to this subcommittee every meeting public works was able to provide us with their information. And I don't know why the keyboard doesn't work. I mean, I lose this. So the Public Works Department has 38 grant awards and 31 funding projects funding for 31 projects. You have a full, I believe you have a full list in your packet If not, I won't give it to you. But it is an impressive list. It's not just facts. Background. On the back. Oh, this is the back couple slides. Would you like me to clip for you while you focus? That'd be great. Thank you. Alrighty, so I'm highlighting some of them. We'll start with, sorry, next slide. The project 2025, the Delta De Anza multimodal Trail Safety Improvements. You see this as you see this as are driving down railroad um and of Ann Harbor. So this is in the city and the county It's at all crossings of Delta De Anza Trail, and currently there's an RFQ to get a design consultant. So when doing my debrief with John Sanderson, I asked him, what are the improvements? We don't know them yet. The design consultant is going to do a lot of public outreach as part of the project to figure out what the public wants to see at each of the crossings. So whether it be a bulb out, whether it be you know a An expanded crosswalk, whether it be traffic calming at each one. That's going to be flushed out at public outreach. This is $5 million worth of improvements. So there's a $500,000 match from the East Bay Regional Park District. At no local with no local dollars then. So great project pretty chunky project with no Any questions on this one? I'll give you a quick caveat that I probably won't be able to answer many of them. But happy to take him down and get information for you. Next project is 2037 Harbor Street Safety Improvements. Yes, you'll see a presentation on Monday to accept the grant dollars. It's for enhanced pedestrian traffic signal improvements and increased street lighting. This is a grant from the local highway safety improvement program cycle and the award is for $2.24 million. Next up is project 2472 Pittsburgh Moves Active Transportation Plan and ADA Transition Plan. This grant will update the active transportation plan, also called Pittsburgh Moves, and it will update ADA transition plan at all city facilities. This is buildings and our transportation system. It will help us, excuse me, it won't be updating them. It'll be a plan to update them. It will help us with federal grants in the future if we actually have an ADA transition plan in place. From what I understand, we have an informal plan. This will formalize the plan. Bring it all the way up to address. What we're adding is the ADA component. We have a council. We adopted the ATP But it's including the ADA. Into the ATA. Next is Project 3024 Buchanan Road Slope Repair. So this was part of the winter storms that was not fundable by FEMA. With work between Zuna and our engineering division. They were able to, Zuna was able to get funding from the Federal Highway Administration, 1.5 million. It's ready for bid, expecting construction in the fall. Then we have the Bella Vista Riverview Water Consolidation. These are um mobile home parks that were running on wells that tried to apply for funding to basically connect to city water. They were ineligible for funding, but we are able to apply on their behalf. So if we get the grant funds, we'll be connecting them to taking them off wells and on to city water. We're thinking one to two years for start date for this, just based on the grant application and granting process. Where is this? Basically willow pass, you know where willow pass goes It's right there on the north side. A little task from them. What's the testing company the camel app. Those are the highlighted projects. I can get you this list, but John did. As well, it's like I said, 31. Threats that are busy. And just the timeline. So these were all awarded within the last year or two years Good question. No. For instance, frontage road living green trail i think has been it's officially closed But this is all the active grants. Any other questions and in general on this item, is this kind of what you'd like to see on this item as far as highlights with a list of all the grants? Is there anything missing from this presentation? No, you said you have the full list. I do. Does the list include… batch from the city in terms of what has to be part of the match. So far, this list has what the grant is, who it's from, and what the award is, but I can make sure that all future lists include city contribution. As well. Yep. Final presentation again counselor sarah valpronte with an update on special road news Alrighty, so we have an update to special revenues. Before we do that and a segue from one type of grant to another. I have an update on the Pittsburgh Promise Grant. We have 42 applicants Which is really exciting. It closes May 31st. We wanted to give people enough time to apply. And get their acceptance letters because that's one of the qualifications. 42 applicants, five were ineligible. 13 were incomplete, but we've been sending reminder letters and reminder emails on what we still need. And no internal applications so far. So all from the community. Thank you. Okay, now moving away from grants. Alrighty, so we'll start with arpa you'll see on your spreadsheet that we have fully spent many of the ARPA dollars on projects. So we've got EV chargers at City Hall, the fleet study. Local business coaching, and additional local business coaching, reviving that heart of Pittsburgh, Americana Bypass, and PD servers have spent all of their allocated RPA funding. So all that's left to Track essentially is Dreamcourse, Premier Fields, home to Suites, City Park Restrooms, and the ERP. We have until December 2026 and December 2026 to spend all that. We have spent 6.9 million So the 9.35 left we will spend by 12-31-26. And we did officially obligate all the dollars on time. We got a report that showed we obligated all the dollars on time. So as far as we can tell, we don't owe any money back to the feds. Any questions on ARPA? Just the same way on Dreamforce. The… discovery builders were reached out for several other subcontractors to see if they could get a little more responsive bidding That's wrapping up. It does not sound as fruitful as we hoped and so then we're finalizing the amendment for Our exchanging red lines mimicking Amendment 3, which was already approved. I'll try to stick to that so we can do those proceeds. Okay, moving on to Measure M surplus. In 2324 revenues that were available to spend this This fiscal year, we received six, just over $6 million in total revenue when you take away the annual allocations to the based departments. You have the surplus of 1.172 million, of which we have allocated All the 12,000 for. So sidewalk repair, premier fields public works streets and library hours are what we are spending and have spent the 24 25 surplus on like i said with a unallocated amount of $12,451. In fiscal year 2425, we anticipate a total measure M revenue of 6.34 million. You'll notice that we have increased the public works base revenue, excuse me, base allocation by 500,000 in this fiscal year. Well, for next fiscal year with this fiscal year's revenue to 1.25 that extra $500,000 is for streets And that gives us an expected surplus in 2526 of 952,000. 441. We have not allocated most of that there's 730,000. But we don't have plans for most of that. There's 730,000, 784. That we have not kind of earmarked or allocated. 100,000 and 121,000 already for library and sidewalk repairs. Some ideas for the use of the 730,000 just based on the 2526 strategic plan we just adopted, more road repairs? Seafood festival, Jazz Blues Bunk. Emergency preparedness, a CERT program. Zuna actually gave us a pretty cool information on what Concord, she considers the leader of Contra Costa CERT, what they're doing and how they have incorporated the schools And gotten students that speak languages like Farsi and Spanish to be cert Certified and then go out and educate their circles and make sure that, you know, circles with other languages are being educated on emergency preparedness. There's park maintenance there's the pool there's economic development incentive packages so a lot of different ways that the 730,000 And we'd like to work with this subcommittee on what how would you like that the potential projects be focused on and we can work with you all on how to best recommend the spending and then have it go to the measure m subcommittee and ultimately the council And we have a couple of months still on a budget that's still developing so Yeah, I guess in terms of that conversation so If we have the update before the May 5th meeting is somewhere to start having that conversation So I'm looking at it, it's definitely helpful. We shared the strategic plan So we have the two improvement areas So if you listen to anything else outside of those pool pool and parks maintenance no parks maintenance would be uh infrastructure but pool Could be recreation. I mean, it's nice to have little money to actually make some things happen. Any questions on measuring surplus? Just to highlight again, we've how we've transitioned this to make sure it's cash in hand you know part of our challenge was before yeah we'd have the estimated and we really wouldn't know. So I do appreciate Sarah and the team here working on them. Real number we will come back with updates to this every subcommittee um but i think what we experienced in the past is we don't really actually know our full measuring revenue until like October of the next year. So as far as what are we going to spend this surplus on? Making commitments post-October would probably be most prudent. And then we have our general fund surplus. This amount is part of the reserves. So this is the fiscal year 21 general fund surplus, what's left of it is $231,813. This amount is part of the reserves calculation so leaving it or returning it to source in the general fund and taking it kind of out of the categorization of general fund surplus from 21. Might be the only recommended moves here. But nothing's changed as far as what we plan to spend from it. The police activities lead to 250,000 a year. Correct. Calls for their executive director. Forward to the executive director like the first few years yes first few years. It wasn't just one year or two it was spread out Okay. Are they going to… And that's for that. Fundraising for sustaining that What we'll do for the next meeting here, we'll have the chief come in and give some background on that. Any future expectations or how they're going to cover those funds. Okay, I am five in the subcommittee and staff reports or remarks. If not, we will adjourn. Have a great Easter weekend. Thank you.