CITY OF SAN MATEO
Business Plan
2008 – 2010
New Police Station
ADOPTED
2008 – 2009 Budget
CITY OF SAN MATEO
and
REDEVELOPMENT AGENCY
BUSINESS PLAN
2008 - 2010
2008 – 2009 Budget
Adopted
June 16, 2008
City Council
Carole Groom ............................................................................................................. Mayor
Brandt Grotte................................................................................................. Deputy Mayor
Jan Epstein................................................................................................. Council Member
John Lee..................................................................................................... Council Member
Jack Matthews............................................................................................ Council Member
Submitted by: Arne L. Croce, City Manager
i
T
City of San Mateo
______________________________________________________________
Organizational Principles
______________________________________________________________
Committed * Responsive * Creative
he City of San Mateo is an organization of individuals
dedicated to serving the San Mateo community. Our
goals are to provide quality municipal services and
responsive city government. To achieve these goals,
we are committed to the following principles for the conduct
of our business:
¨ Service to the community is our purpose. Take time to
communicate, understand, and involve the community.
¨ We all work for one organization. Respect and value the people
who work here; be supportive of each other.
¨ Look at the long term. Take actions which will maintain our
ability to serve the community in the future while appreciating
our heritage and history.
¨ Seek constant improvement. Be receptive to new ideas;
encourage creativity, innovation, and experimentation.
¨ Lead by example. Let the community and our colleagues judge
our commitment to these principles by our individual actions.
City of San Mateo
______________________________________________________________
City Council Vision
______________________________________________________________
San Mateo
♦ Is the pre- eminent City between San Francisco and San Jose.
♦
♦
♦
♦
♦
♦
♦
♦
♦
♦
♦
♦
♦
Has strong, attractive commercial areas and viable, wholesome neighborhoods.
Has a solid, healthy economic and financial base.
Includes its diverse population in all facets of community life and is a nurturing place
for youth.
Is safe and has well maintained infrastructure.
Is the cultural center of the County.
Is increasingly sustainable and a leader in reducing carbon emissions
To achieve this vision, the San Mateo City Government will:
Facilitate the effective functioning and development of the community and its
citizens.
Ensure all elements of the community are well represented in the government
process.
Serve as both a facilitator and a provider in seeing that community needs and desires
are addressed through the most appropriate, effective delivery system whether it is
public, non- public or public/ private partnership.
Serve as a consensus builder in the community and articulate collective direction.
Maintain a responsive, capable staff dedicated to serving the community in a non-bureaucratic
manner and provide high value for the expenditure of public funds.
Look to the long- term future of the community and seek constant improvement,
including increasing sustainability and reducing the community’s carbon footprint
Be a full partner in the sharing of common services and regional affairs that affect the
City.
ii
SAN MATEO CITY COUNCIL
STRATEGIC DIRECTIONS AND GOALS
The Strategic Directions express the Council’s Vision in terms of key targets that must be
accomplished to achieve the Vision. These Strategic Directions include:
A. Safe, Clean, and Attractive Neighborhoods
Ensure higher levels of public safety, especially in neighborhoods under the most
stress.
♦
♦
♦
♦
♦
♦
♦
♦
♦
♦
♦
♦
♦
♦
Enhance the quality of residential neighborhoods by encouraging improved
appearance and more community involvement.
Maintain emergency preparedness to respond to natural disasters and other
emergencies
B. Successful Businesses and a Solid Tax Base
Increase the economic vitality of the City with strengthened ties between business and
the general community.
C. A Community Where Residents Can Flourish and Youth are Nurtured
Continue to encourage involvement of youth in our community by improving
programs for children, pre- teens, and teens.
D. Orderly Planning, Development, and Functioning of the Community
Support efforts to improve residential neighborhoods and preserve and enhance
neighborhood character.
Support future growth and redevelopment along transportation corridors to ensure a
well- planned environment, promote a high quality of life and maximize use of public
transit.
Continue efforts to increase entry level housing, strive for a balance between jobs and
housing, and provide incentives for City employees to live in San Mateo.
Continue to invest in the long- term infrastructure needs of the City and create an
identity for San Mateo that generates civic pride and responsibility.
E. An Open, Participative, and Effective City Government
Continue to provide cost- effective and quality services that are accessible to all
segments of the San Mateo community.
Maintain City finances where expenses do not exceed ongoing revenues.
Expand community outreach and participation opportunities for all who live and/ or
work in San Mateo.
Continue to cooperate with schools and other agencies to improve services,
strengthen partnerships, avoid duplication, and decrease costs.
Develop and maintain an organization which values employee participation and a
sense of ownership.
iii
MAJOR MUNICIPAL SERVICE LINES AND
OPERATING PROGRAMS
The City of San Mateo is a municipal corporation providing a wide range of services and functions to San Mateo.
Administrative Support Services are also provided to the City and operating departments. Following is a list of 76
specific services and functions, in the form of operating programs, which the City is currently providing.
PUBLIC SERVICES
A. POLICE SERVICES
Field Operations Services
Investigation Services
Support Services
Contractual Liaison
Police Special Grants
CPID Parking Security
B. FIRE SERVICES
Fire Administration
Fire Operations
Fire Training
Fire Emergency Planning
Fire Protection and Life Safety
EMS
C. PUBLIC WORKS SERVICES
Traffic Engineering
Engineering Services
Building Maintenance
Street Maintenance
Waste Disposal
Traffic Maintenance
Street Sweeping
Sewer System Engineering Services
Wastewater Treatment
Dale Avenue Lift Station
Sewer Maintenance
Storm Water Pollution Control
Wastewater Source Control
Marina Lagoon
CPID Parking Operations & Maintenance
D. COMMUNITY DEVELOPMENT SERVICES
Planning
Economic Development
Community Development Administration
Code Enforcement
Advance Planning
Community Development Block Grant ( CDBG)
City Housing
Home Investment Partnership Act ( H. O. M. E.)
Building Safety
Planning Construction Services
CPID Parking Administration
Civic Facilities
E. PARKS & RECREATION SERVICES
Youth Development
Active & Healthy Lifestyles
Creative Outlets
Enrichment & Lifelong Learning
Creating Community – Spaces, Celebration, Support
E. PARKS & RECREATION SERVICES ( continued)
Support Services
Landscape Resources/ Arboriculture
Landscape Resources/ Horticulture
Landscape Resources/ Administration
Visitor Management
Technical/ Administration Services
Golf Services
F. LIBRARY SERVICES
Circulation- Central
Children/ Young Adults Services
Information Services
Community Libraries
Technical Services
Library Operations
Literacy
ADMINISTRATIVE AND SUPPORT FUNCTIONS
G. CITY COUNCIL
Legislative Operations
Community Promotion
Intergovernment Relations
H. CITY MANAGER
City Management
Information Technology
I. CITY CLERK
Council Support
Records Management
Elections
J. CITY ATTORNEY
Legal Counsel
Claims and Litigation
K. BUSINESS SERVICES
Treasury/ Cash Management
Central Services
Accounting Services
Fleet Services
L. HUMAN RESOURCES
Recruitment / Selection / Classification
Employee Relations
Employee Services/ Training
Workers' Compensation/ Self Insurance
iv
CITY OF SAN MATEO ORGANIZATION
CITY COUNCIL
CITY ATTORNEY
BOARDS & COMMISSIONS
Community Improvement
Community Relations
Library
Parks & Recreation
Personnel
Planning
Public Works
Senior Citizens
Youth Advisory Council
Housing Rehabilitation Loan
CITY MANAGER CITY CLERK
OPERATING DEPARTMENTS
BUSINESS
POLICE SERVICES
PRINCIPAL MANAGEMENT PERSONNEL
City Manager ........................................................................ Arne Croce
Deputy City Manager .......................................................... Susan Loftus
City Attorney .................................................................... Shawn Mason
City Clerk .......................................................................... Norma Gomez
Chief of Police ........................................................ Susan E. Manheimer
Fire Chief ............................................................................. Dan Belville
Director of Public Works ................................................ Larry Patterson
Director of Community Development ................................. Robert Beyer
Parks and Recreation Director ...................................... Sheila Canzian
City Librarian ......................................................................... Ben Ocon
Finance Director/ City Treasurer ................................ Hossein Golestan
Human Resources Director ................................................. Linda Spady
FIRE LIBRARY
PUBLIC
WORKS
COMMUNITY
DEVELOPMENT
PARKS
&
REC
COMMUNITY OF SAN MATEO
HUMAN
RESOURCES
v
vi
PROFILE OF SAN MATEO
Location
The City of San Mateo is located in San Mateo County, on the Peninsula in the San Francisco Bay
area. It is bordered by Burlingame to the north, Foster City to the east, Belmont to the south,
Hillsborough and San Mateo County to the west. The City is conveniently situation 19 miles south
of San Francisco and 30 miles north of San Jose. It covers an area of 14.6 square miles, including
3.87 square miles of tidelands from San Francisco Bay to the east and a range of coastal mountains
to the west.
The City
The City was incorporated in 1894 and was originally chartered in 1922. The current charter was
adopted in 1971 and revised in 2002. San Mateo has a Council- Manager form of government. The
five Council members serve at- large for four- year terms. The Council selects a Mayor from among
its members each December for a one- year term. The Mayor and City Council serve as the
legislative and policy making body of the City. The City Manager, appointed by the Council, serves
as chief executive officer and is responsible for the day- to- day administration of City affairs. The
City Council also appoints a City Attorney. There are nine Advisory Boards and Commission that
are appointed by the City Council.
Services
The City provides a full range of municipal services. These include police and fire protection,
planning, building, sewer service, street maintenance, and general administrative services. Water is
provided to the residents of the City of San Mateo by California Water Services, a private company.
The City operates and maintains facilities for wastewater treatment. In addition, the City offers
thirty parks, six recreation centers, three libraries, and an 18- hole golf course. The San Mateo
Performing Arts Center hosts productions by numerous local, regional, and international artistic
enterprises, including the Peninsula Ballet Theatre, the Peninsula Civic Light Opera, and the
Peninsula Symphony. San Mateo has abundant shopping areas, including two major regional
shopping centers, Hillsdale Shopping Mall and Bridgepointe. Through its Redevelopment Agency,
the City provides housing and economic improvements to the Downtown and Shoreline areas.
Population and Demographic Characteristics
The population of San Mateo was approximately 94,315 in 2006, and 95,510 in 2007. The City’s
population has increased by 1,195 persons from 2006 to 2007. Average person per household has
also increased steadily in recent years, rising to 2.48 in 2007. The median family income is
estimated to be $ 90,000 in 2007.
Local Economy
San Mateo is located in the central Bay Area and has direct access to interstate highways, rail lines, a
trans- bay bridge, public transit routes, and the San Francisco International Airport. San Mateo serves
vii
as a center of commercial and residential activity. The Transit Center is a multi- modal
transportation hub allowing people to board Caltrain to destinations as far north as San Francisco
and as far south as Gilroy.
Two major sites as well as the City’s downtown have had, and continue to see, significant economic
growth. Bridgepointe’s retail complex and the residential component have been successful. The
Phase I development of Bay Meadows, which includes office, residential and retail components, is
completed. Another phase of the Bay Meadows racetrack development has been approved. With
the addition of all these developments, the City is expected to maintain its strong tax base.
The local economy has experienced moderate economic downturn, as is the case with the U. S.
economy as a whole. The long term outlook for the City economic health remains cautiously
optimistic.
The community is comprised of residences of all types and at a range of costs, major retail and
commercial establishments, a downtown transit center, a community college, and two major medical
centers. It is also the home of the San Mateo County Fairground. There is also renewed interest in
the downtown area, which continues to attract quality small to medium sized businesses. The
Downtown Cinema Complex adds significantly to the area’s vitality. The new main City Library is
in operation and benefits many local residents. The construction of the new Police Station has been
underway. The total assessed value of property in San Mateo for 2007- 2008 was $ 15.5 billion.
Total employment in San Mateo has been relatively stable. This may be attributable to the fact that
San Mateo has not been as dependent as other localities on the high technology sector or the
defense- related industry, such as commercial aircraft manufacturing, both of which experience more
volatility than other industries. The unemployment rate peaked out in the mid- 1990’ s ( 4.5- 6.2%),
and is currently at 3.1% for 2008.
viii
Statistical Data
Miscellaneous statistical data for the City of San Mateo is as follows:
Date of Incorporation: 1894
Form of Government: Council- Manager
Area in Square Miles: 14.6
Climate: Average summer temperature is 75° F
Average winter temperature is 55° F
Number of Employees: 700
Culture and Recreation: 6 Community Centers
3 Libraries
30 Parks ( Developed)
1 Golf Course
Fire Protection: 6 Fire Stations
104 Firefighters and Personnel
Police Protection: 1 Police Station
175 Law Enforcement Officers and Personnel
Miles of Streets: 204 miles
Municipal Waste Disposal: 260 miles of sewers
Building Permits Issued: 3,600
Housing Units: 38,500
ix
BASIS OF BUDGETING
Fund Accounting Budget System:
The City of San Mateo's budget is organized on the basis of the fund accounting system, each of which
is considered a separate budgeting entity. Government resources are allocated to and expenses
accounted for in individual funds based upon the purposes for which they are to be spent and the means
by which spending activities are controlled. All operating funds' budgets lapse at the end of the
adoption cycle. The capital project fund appropriations are valid for the life of the projects. The City
also maintains an encumbrance accounting system as one technique of accomplishing budgetary control.
Encumbered amounts in the operating budget lapse one year after the end of the fiscal year. There is no
formal provision in departmental budget for depreciation and compensated absence, but they are
budgeted as internal services fund charges. The following fund types are used by the City and the
Agency budget:
• Governmental Fund Types:
All governmental fund budgets are accounted for using a current financial resources measurement focus
and modified accrual basis.
. . . General Fund - This fund accounts for all financial resources not required to be accounted for in
other funds, and is the general operating fund of the City. The Recreation is a sub- fund of the
General Fund.
. . . Special Revenue Funds - These funds account for the City's revenues from sources which, by law
or administrative action, are designated to finance particular functions or activities other than
capital projects or expendable trusts.
. . . Debt Service Funds - These funds account for the accumulation of financial resources for, and the
payment of, principal, interest and related costs on general long- term debt.
. . . Capital Projects Funds - These funds account for financial resources to be used for the acquisition
or construction of major capital facilities ( other than those financed by Proprietary Fund Types).
• Proprietary Fund Types:
All proprietary fund budgets are accounted for on a flow of economic resources measurement focus and
full accrual basis.
. . . Enterprise Funds - These funds account for operations of the City that are financed and operated in
a manner similar to private business enterprises.
. . . Internal Service Funds - These funds account for the financing of services provided by one
department to other departments on a cost- reimbursement basis.
Budgetary Controls
Effective July 1, 1986, the City implemented a two- year budget cycle. The two- year budget process
requires that each department submit two one- year expenditure plans and revenue estimates to the City
Council for approval. Only the first of the two years budget will be adopted. In each alternate year,
City staff makes recommendations to the City Council for amending the second year plan. The
Department Heads are responsible for containing expenditures within their budgeted appropriations as
approved by the City Council. Subsequent to the adoption of the budget, all additional changes to the
budget require City Council approval.
Activities of the General Fund, Special Revenue Funds, Debt Service Funds, Proprietary and Capital
Funds are included in the annual budget. The level of budgetary control is the department within each
fund.
x
TWO- YEAR BUSINESS PLAN PREPARATION PROCESS
1. City Council Goal Setting
The City Council meets every December and reviews the short- term and long- term mission of the
City. Priorities and goals are identified that will steer the City's budget planning to the right
direction.
2. City Manager and Department Heads Review Council Goals
The City Manager and all Department Heads continue to review the goals and have a strategy to
reflect these goals in each department's budget plan.
3. Budget Instructions to Operating Departments
The Finance Department is responsible for major general fund revenue forecast and the
preparation of budget instructions which include:
• Budget dollar target for each department.
• Revenue estimate by each department ( if applicable).
• Department goals revision and new budget planning.
• Computer training for each operating department.
4. New Business Plan Preparation by Operating Departments
Each department usually has at least a month to review their goals, project new revenue and new
expense plan. This is the time for all departments to evaluate the objectives of their operations
and plan for the next two years.
5. Review and Completion of the New Business Plan
After all the departments' budgets are due back in Finance, Finance will take the lead in
reviewing, reconciling and compiling the entire City budget.
6. The Proposed Business Plan Workbook
The two- year business plan is delivered to the departments, the City Council and other interested
parties around mid- May in a workbook form for the first public hearing. The City Council, as
well as the public, has the opportunity to review and discuss any concerns with the City staff.
The first of the two- year plan is recommended to be adopted. The second year remains as
proposed.
7. The Public Hearings, Council Study Session and the Adoption
The City Council holds the first public hearing and a study session to review the two- year
business plan. A second public hearing and final adoption takes place in late- June. Any
recommendations and changes resulting from the adoption will be incorporated into the
document.
8. Printing
The two- year business plan is printed in its final bound form with the notation that the first year
becomes the adopted budget for the City and the second year as the proposed. This adopted
document is distributed throughout the City organization and to all interested outside parties.
9. Amendments after the Adoption
In instances where new resources and spending plans are identified, the Council may amend or
supplement the budget by ordinance during the fiscal year.
xi
Typical Business Plan Preparation Procedures
December • City Council goal setting session.
January • City Manager and Department Board of Directors review
City Council goals and set tone for the new budget.
• Finance commences building budget targets and key revenue
projections.
February • Budget instructions/ targets issued to departments.
• Budget preparation training commences and computers
turned on.
• Each department reviews their goals and prepares the new
budget.
March • Revenue estimates due back in Finance.
• Budget due back in Finance.
April • Finance reviews and reconciles all departments’ budgets.
• Budget in agreement with departments and due back in
Finance in final form.
• Finance compiles and co- ordinates the entire City budget.
May • Deliver proposed budget workbook to City Council ( mid-
May).
June • First public hearing and Council study session. Second
public hearing and adoption ( mid- June).
TABLE OF CONTENTS
xiii
BUDGET MESSAGE AND OVERVIEW Page
City Manager's Budget Message................................................................... Section 1 1
Attachment A: General Fund Changes ............................................. 9
Attachment B: Special Funds Changes ............................................. 11
Attachment C: Capital Improvement Program ................................. 13
Attachment D: General Fund Financial Summary............................ 14
Attachment E: Budget Calendar....................................................... 15
Award Certificates ........................................................................................ 16
Adopted Budget Documentation – City and RDA........................................ 18
FINANCIAL SUMMARIES
Graphs Presenting Summary Information..................................................... Section 2 2
Financial Summary by Fund 2008- 09 and 2009- 010.................................... 8
Budget Comparison by Year......................................................................... 10
Summary of Authorized Positions ................................................................ 11
Expenditure Assumptions ............................................................................. 12
Budget Summary by Program....................................................................... 13
Budget Summary by Fund ............................................................................ 16
Schedule of Inter- fund Transfers .................................................................. 18
Revenue Highlights and Assumptions .......................................................... 20
General Fund Revenue & Variances............................................................. 22
DEPARTMENT PROGRAMS
City Council ................................................................................................. Section 3 1
Performance Measurements.............................................................. 2
Legislative Operations ...................................................................... 4
Community Promotion...................................................................... 6
Intergovernmental Relations ............................................................. 8
City Manager............................................................................................... Section 4 1
Performance Measurements.............................................................. 2
City Management .............................................................................. 6
City Attorney ............................................................................................... Section 5 1
Legal Counsel.................................................................................... 4
Claims and Litigation Defense.......................................................... 6
City Clerk..................................................................................................... Section 6 1
Performance Measurements.............................................................. 2
City Council Support ........................................................................ 6
Records Management........................................................................ 8
Elections............................................................................................ 10
Business Services ......................................................................................... Section 7 1
Performance Measurements.............................................................. 2
Accounting Services ......................................................................... 6
Treasury/ Cash Management/ Budget................................................. 8
Central Services ................................................................................ 10
Fleet Services .................................................................................... 12
TABLE OF CONTENTS
xiv
Information Technology ............................................................................. Section 8 1
Performance Measurements.............................................................. 2
Software and Strategic Support......................................................... 6
Systems and Network Support.......................................................... 8
Human Resources ....................................................................................... Section 9 1
Performance Measurements.............................................................. 2
Recruitment/ Selection/ Classification................................................ 6
Employee Relations .......................................................................... 8
Employee Services/ Training ............................................................. 10
Worker's Compensation/ Self Insurance ............................................ 12
Community Development........................................................................... Section 10 1
Performance Measurements.............................................................. 2
Current Planning ............................................................................... 6
Advanced Planning ........................................................................... 8
Building Safety ................................................................................. 10
City Housing ..................................................................................... 12
Code Enforcement............................................................................. 14
Economic Development .................................................................... 16
Civic Facilities .................................................................................. 18
Community Development Support ................................................... 20
Public Works ............................................................................................... Section 11 1
Performance Measurements.............................................................. 2
Transportation Engineering............................................................... 8
Engineering Services......................................................................... 10
Street Maintenance............................................................................ 12
Traffic Systems Maintenance............................................................ 14
Storm Water Pollution Control ......................................................... 16
Marina Lagoon Management ............................................................ 18
Street Sweeping................................................................................. 20
Waste Management........................................................................... 22
Wastewater Treatment Plant ............................................................. 24
Wastewater Source Control............................................................... 26
Dale Avenue Pumping Station.......................................................... 28
Sewer System Engineering Services................................................. 30
Sewer Maintenance ........................................................................... 32
Building Maintenance ....................................................................... 34
Parking Operations and Maintenance ( CPID)................................... 36
TABLE OF CONTENTS
xv
Police ............................................................................................................ Section 12 1
Performance Measurements.............................................................. 4
Field Operations Services ................................................................. 8
Investigative Services........................................................................ 10
Support Services ............................................................................... 12
Contractual Liaison ........................................................................... 16
Police Grants ..................................................................................... 18
CPID Security ................................................................................... 20
Downtown Redevelopment Area ( RDA).......................................... 22
Fire................................................................................................................ Section 13 1
Performance Measurements.............................................................. 2
Fire Administration ........................................................................... 6
Fire Operations.................................................................................. 8
Fire Emergency Planning.................................................................. 12
Fire Protection and Life Safety ......................................................... 14
Parks and Recreation.................................................................................. Section 14 1
Performance Measurements.............................................................. 4
Active & Healthy Lifestyles.............................................................. 8
Child & Youth Development ............................................................ 10
Creative Outlets................................................................................. 14
Enrichment & Lifelong Learning...................................................... 16
Creating Community – Spaces, Celebration, Support ...................... 18
Recreation Services Support ............................................................. 20
Landscape Resources/ Arbor Management........................................ 22
Landscape Resources/ Park Maintenance & Support ........................ 24
Visitor Management.......................................................................... 26
Golf Services..................................................................................... 28
Administration .................................................................................. 30
Library ......................................................................................................... Section 15 1
Performance Measurements.............................................................. 4
Circulation......................................................................................... 8
Children’s Services ........................................................................... 10
Information Services ......................................................................... 12
Community Libraries ........................................................................ 14
Technical Services ............................................................................ 16
Library Operations ............................................................................ 18
Literacy ............................................................................................. 20
TABLE OF CONTENTS
xvi
SPECIAL FUNDS
Fund 21 - Solid Waste...................................................................... Section 16 2
Fund 22 - H. O. M. E. Fund ................................................................ 3
Fund 23 – Community Development Block Grant ( C. D. B. G.) ........ 4
Fund 26 – Construction Services ...................................................... 5
Fund 27 – Gas Tax ............................................................................ 6
Fund 28 – Central Parking and Improvement District...................... 7
Fund 72 – Sewer Enterprise .............................................................. 8
Fund 81 – Vehicle and Equipment Replacement Reserve................ 10
Debt Management – Debt Policies and Practice............................... 11
REDEVELOPMENT AGENCY
San Mateo Redevelopment Agency ................................................. Section 17 1
San Mateo Redevelopment Agency Merged Area............................ 3
Redevelopment Housing Set Aside................................................... 6
CAPITAL IMPROVEMENT PROGRAM
Five Year Capital Program beginning 2008- 09 by Project/ Category Section 18 1
Two Year Summary 2008- 09, 2009- 10 by Funding Type................ 11
Two Year Detail 2008- 09, 2009- 10 by Funding Type...................... 12
Two Year Capital Program 2008- 09, 2009- 10 by Category............. 16
PERSONNEL INFORMATION
Summary of Authorized Positions .................................................... Section 19 1
Authorized Merit System Positions .................................................. 2
APPENDICES
A. Financial Goals and Policies .................................................... Section 20 1
B. Summary of Revenue– All Funds ............................................. 5
General Fund Revenue – Constant Dollar & Per Capita Information ... 12
C. Gann Limit................................................................................. 13
Proposition 218.......................................................................... 18
Glossary of Terms ..................................................................... 19
330 West 20th Avenue
San Mateo, CA 94403- 1388
Telephone: ( 650) 522- 7100
FAX: ( 650) 522- 7001
Website:// www. cityofsanmateo. org
OFFICE OF THE CITY MANAGER
TO: Mayor and City Council This transmittal letter pertains to the Proposed 2008- 2010
Business Plan. All documentation that follows reflects the
Final Adopted Budget.
Please see pages 1- 18 to 1- 21 for Adopted Budget
information.
FROM: Arne Croce, City Manager
DATE: May 15, 2008
Re: PROPOSED 2008- 10 BUSINESS PLAN
Presented for your consideration is the recommended 2008- 10 Business Plan for the City and
Redevelopment Agency. This plan includes the proposed work program for the 2008- 09 and
2009- 10 fiscal years and budget for the 2008- 09 fiscal year.
PROPOSED 2008- 09 BUDGET OVERVIEW
The overall budget is $ 146.27M for FY 08- 09
and its major components are: 1) the City
Operating Budget of $ 119.90, showing an
increase of $ 4M or 3.5% over the 07- 08 budget
2) the Redevelopment Operating Budget of
$ 10.19 million, higher than the current year’s
budget by $ 0.3M or 3.3% and 3) Capital
Improvement Program of $ 16.18 million, up by
$ 2M ( 14%) compared to the current year’s
budget.
Fiscal Year 2008- 09
Proposed Budget Summary
1. City Operating Budget
General Funds $ 83.29M
Special Funds $ 36.61
Total $ 119.90
2. Redevelopment Operating Budget $ 10.19
3. Capital Improvement Program
City of San Mateo $ 12.06
Redevelopment Agency $ 4.12
Total $ 16.18
Overall Total City and RDA $ 146.27
Attachments A, B, and C show details of the
above- described changes.
THE ECONOMIC CLIMATE
The local economy, while less impacted by the housing crisis than most other parts of the
country, is nonetheless experiencing a significant slowdown in housing activity. The retail sector
that generates half of the City’s sales tax revenue has not experienced any growth over the last
few years. Most economic forecasts indicate that the regional economy is not expected to grow
over the next twelve months and indeed is likely to experience a recession. These factors have
the most significant impact on the General Fund.
The economic downturn, significant uncertainty about the future, and increased costs of
providing and maintaining core services has negatively impacted the City’s financial condition.
We also face the prospect of a State taking of some revenues that are not protected by
Proposition 1A. As a result, in order to maintain the current level of service, we are including the
use of $ 2 million of reserves in 2008- 09 to balance the General Fund portion of the budget. At
the same time we are developing options to close the structural deficit for 2009- 10 budget and
future years.
GENERAL FUND
The General Fund provides funding for key public services such as Police, Fire, Parks and
Recreation, Library, and Street Maintenance.
Current Year-- 2007- 08: Total ongoing revenue is estimated at $ 79.5M, an increase of $ 3.6M or
4.7% over the prior fiscal year. This is consistent with the budget and below the 5.3% growth
experienced in the previous fiscal year. Property Transfer Tax, Sales Tax and Property Tax
represent 70% of the General Fund revenues. The revenue from property transfer tax has
decreased significantly, estimated at $ 6.5M this year compared with the $ 10.4M received in
2006- 07. Ongoing sales tax revenue continues to be close to flat. Property taxes grew by 8% over
last year. Hotel and business taxes are coming in better than expected but they comprise a
relatively small portion of the total revenues. The ongoing expenditures are estimated at $ 79.2M,
marginally below budget, but representing 6.5% increase over the prior year’s actual amount of
$ 74.4M; this is largely the result of negotiated compensation increases.
2008- 09-- Budget: The recommended budget for 2008- 09 includes operating and capital
expenditures of $ 85.6M, an increase of 6% over the current year’s budget, and ongoing revenues
of $ 83.6M, 4% growth over the estimated for the current year. Revenue from sales tax is
projected to increase by 3%; property related taxes are estimated to grow by 8% and hotel tax by
5%. Property tax growth is projected to slow to 6% in 2009- 10 reflecting decreased home values
and sales.
The State budget is projected to have the largest deficit ever, estimated to exceed $ 17 billion
over the next 18 months. As a result it is highly likely that despite the overwhelming passage of
Proposition 1A in 2004 the State will take city revenue. The items currently under consideration
in Sacramento are law enforcement related and total approximately $ 0.70M per year. This
reduction is built into the recommended Business Plan.
With the imbalance between estimated ongoing revenue and expenditures, the recommended
Business Plan, for the first time in my eighteen years as City Manager, includes the use of
reserves to fund ongoing operations. The amount of reserves included in the plan is $ 2.0 million
for 2008/ 09. This will reduce our general reserves to approximately $ 9 million, or half of the
Council’s established goal. The organization has begun the process of identifying cost reduction
options that would eliminate the need for the use of reserves beyond 2008/ 09.
The charts below show the key General Fund revenues and their allocation to the main service
categories. ( See Attachment D for a Financial Summary of the General Fund Budget).
OPERATING BUDGET: $ 83 million
Police
34%
Operating
Reserve/ Other
1%
Park & Recreation
15%
Library
7%
Fire
22%
Liability Insurance
1%
General
Management
10%
Policy Development
3%
Public Works
6%
Community
Development
1%
SOURCES OF FUNDS: $ 83 million
Other Revenue
17%
Gas Tax
2%
Trans fer Tax
8%
P arks &
Rec/ Library
4%
Bus ines s
Licens e
4%
Sales Tax
21%
Property Tax in
Lieu o f VLF
9%
Ho te l Tax
4%
P roperty Tax
31%
Page 2 of 7
SPECIAL FUNDS
In addition to the General Fund, the City maintains special funds for specific purposes. These
funds include: Sewer, Construction Services, Fire Prevention, Housing, Parking, Advance
Planning, Golf, Redevelopment, Grants, Bond Debt Service, and several Internal Service Funds.
There are no significant service changes proposed in the programs funded by the Special Funds.
There are, however, recommended changes in funding or operations for two funds.
Golf Fund Revenue has not kept pace with expenditures and the fund is now in debt to the
General Fund by $ 0.3M. As this activity is to be self- supported by golf and related revenue, a
General Fund subsidy is not appropriate and takes funds away from more essential services.
Also, the financial performance of the fund does not allow setting aside funds for capital
replacement and reserves. An evaluation of different models to operate and maintain the golf
course with a lower cost structure is underway. The Fire Prevention fund has not been able to
support itself completely from activity driven revenue. We are proposing a restructuring of the
distribution building permit revenue to provide funding for the building- related activities
currently performed by the Fire Prevention Division. This will not increase building permit fees.
SIGNIFICANT CHANGES
As discussed with the Council in February, the Business Plan includes as ongoing costs a number
of items that have been treated as “ limited- term” expenses in recent years or eliminated from
previous budgets. These are: Fire Station 21 full staffing, Street Tree Trimming, the Library
Volunteer and Tech Support programs and increased funding for sidewalk repair.
In addition it is recommended to continue the Narcotics Enforcement Team and Park
Security/ Visitor Management program but with funding to come from other budget savings that
typically materialize during the budget year. This approach will reduce the annual budget savings
and accordingly the carry- over fund balance to the next year. This is not an ideal situation but is
manageable while we develop options to make permanent reductions in operating costs.
The recommended plan reflects cost increases and decreases in a number of areas. The most
significant are:
• Increased cost to fund employee compensation commitments consistent with negotiated
contracts.
• Reduced ongoing contribution to the Workers Compensation Fund by $ 0.5M as we have
experienced a reduction in the claim payments.
• Increased building maintenance costs of $ 0.19M mostly due to the larger new Main
Library
• Increased contribution to C/ CAG ( City/ County Association of Governments) by $ 0.12M
for general programs and congestion management.
• Increased graffiti abatement cost by $ 0.05M
• Additional operating, maintenance and equipment costs of $ 1M for the Sewer Fund.
Page 3 of 7
• Restructuring of some Public Works functions to address increased State regulation of
storm water and reflect changes made this past year in the delivery of services including
Downtown parking maintenance
• Budgeting $ 100,000 in 2008/ 09 and 2009/ 10 to implement recommendations from the
Sustainability Action Plan and Climate Action Plan
The net decrease in merit positions is 9 of which 6 are in the General Fund and 3 are in the
special funds. The net decrease of all FTEs, including over time and part time is 6.31. This
includes a net reduction in the General Fund of 3.70 FTE and a net reduction in special funds
of 2.61.
MAJOR OBJECTIVES
In addition to the delivery of city services, a number of objectives are included in the
recommended Business Plan that support the City Council’s Vision and Strategic Directions.
These are included in each department’s section of the plan. Some of the more visible objectives
are:
Safe, Clean and Attractive Neighborhoods
• Continue efforts on the Neighborhood Traffic Management Strategy to reduce speeding
in neighborhoods through education, enforcement and engineering
• Complete renovation of Harborview Park
• Complete the Bay Meadows Community Park Master Plan
• Complete park improvements at Laurelwood and Casanova Parks
• Identify opportunities for collaborative partnerships with homeowner or neighborhood
associations to improve the appearance of street medians and islands
• Complete construction of the Police Station and begin work on Fire Stations 24 and 23
• Continue efforts to enhance the City’s emergency preparedness ability with special focus
on the Public works, Police and Parks and Recreation departments
Successful Businesses and a Solid Tax Base
• Prioritize and implement programs and policies in the 2008 Downtown Specific Plan
• Implement an intensive downtown retail recruitment program
• Update the City’s Economic Development Strategy
• Expand the Library’s Small Business Development Center partnership and the Franklin
Templeton Investment Business Center to assist the small business community,
individual investors and job seekers
• Implement a funding strategy for expanding the downtown parking supply
• Work with the Joint Powers Board to advance the construction of new grade separations
at 28th and 31st Avenues and examine ways to restructure the 25th Avenue grade crossing
A Community Where Residents Can Flourish and Youth are Nurtured
• Complete Phase I community assessment of Aging Well: San Mateo and undertake Phase
II to identify strategic directions for programs, services and policies that enhance the
quality of life of older adults
Page 4 of 7
• Continue to promote active and healthy lifestyles through the San Mateo On the Move
initiative and improved visibility of parks to support fitness activities
• Broaden the Library’s Info Seekers Student Research Center to all 4th and 5th graders and
their families
• Expand the Library’s Cultural Spotlight programs that promote and celebrate San
Mateo’s ethnically diverse communities
Orderly Planning, Development and Functioning of the Community
• Complete the Downtown Specific Plan Update
• Complete the General Plan update
• Complete the Housing Element update, incorporating policies that come from the
Housing and Land Use Study Report
• Implement recommendations from the Sustainable Initiatives Plan
• Establish a Civic Arts Committee to implement the Percent for Art program
• Prepare a Precise Plan for the west side of El Camino Real between 28th and 31st Avenues
in conjunction with train station planning
• Develop a capital projects funding strategy
An Open, Participative and Effective City Government
• Continue to update and expand the City’s website and expand on- line services
• Continue development of volunteer opportunities to enhance service delivery and create a
greater sense of community ownership.
• Continue citywide communications with neighborhood and business groups
• Continue the City Services Academy
• Implement recommendations from the Climate Action Plan
• Deploy technology solutions to improve the delivery of services, enhance staff efficiency
and effectiveness, better protect City assets and improve emergency response
CAPITAL IMPROVEMENT PROGRAM ( CIP)
The Capital Program is a major component of our budget. It covers additions to and
rehabilitation of the infrastructure that includes the streets, sewers, storm drains, and parks, as
well as civic facilities. While the operating budget reflects the needs of the current community,
the capital improvement program ensures the community’s future livability and the ability of the
City to continue to provide expected services.
The funds recommended for the CIP in 08- 09 amounts to $ 16M net. Significant projects include:
• Citywide Street Rehabilitation ($ 4.7M)
• Wastewater Treatment Plant Phase II Expansion ($ 2.5M)
• Citywide Sanitary Sewer Rehabilitation ($ 1.7M),
• Bay Meadows Grade Separation ($ 1.2M),
• Downtown Parking Improvements ($ 1.2M), and
• Redevelopment Housing Land Acquisition ($ 1.2M)
Page 5 of 7
As the Council is aware, there are a significant number of essential infrastructure projects that
cannot be funded from existing revenue sources. These include storm drain and flood control
projects, street reconstruction and improvements or additions to Park and Recreation facilities.
Measure O on the June ballot would generate approximately $ 1 million annually for parks and
recreation improvements.
PERFORMANCE MEASUREMENT PROGRAM
The City continues to advance the implementation of performance measurements throughout the
organization to ensure the effectiveness and efficiency of the services and programs we deliver to
the community. The performance measurement tables for 2008- 09 ( located at the beginning of
each department’s section of the budget document) provide the annual goals, actual
accomplishments, and future expectations by program area. The graphs provide historical trend
information or comparisons with other cities that provide similar services. The results are
analyzed on a quarterly basis and reported annually. The annual results for the current fiscal
year 2007- 08 will be shared with the Council and community this summer.
CONCLUDING REMARKS
The City’s executive team believes that the recommended Business Plan for 2008- 10 reflects
what the City Council has established as the base level of service for the community. The
unfortunate reality is that with the current, outdated taxation system in California and the high
cost structure of the public sector, maintaining financial and service stability is a constant
struggle. This struggle becomes even more pronounced in a poor economy.
The challenge of the coming year is to reduce on- going costs to match available revenue. The
use of reserves for basic operations cannot continue. To accomplish this will require challenging
fundamental assumptions about how some services should be provided and the minimum
resources necessary to maintain service levels. No organization, public or private, can be static
and assume that everything being done and way things are done should remain unchanged.
Departments have begun the process of identifying and analyzing ways to achieve necessary cost
reductions. The options being examined include restructuring functions, increasing the use of
technology, partnering with other cities and increasing the use of service contracts. Given that
approximately 80% of the City’s operating expenses go to salary and benefits, it is highly likely
that the changes necessary to balance the budget will have impacts on the workforce. While there
can be no guarantees, city management will work hard to minimize the impacts on existing
employees either by offering alternative employment or, if necessary, providing reasonable
severance.
Through the years, the City has adapted and changed as necessary to address economic
circumstances, service needs and constantly evolving best practices. I have every confidence in
the ability of the City to do the same in the face of current and future conditions.
Page 6 of 7
THANK YOU
Putting together a budget for a city the size of San Mateo is always a complex task. I would like
to thank Deputy City Manager Susan Loftus for her direction of this effort, the Finance Staff,
under the direction of Finance Director Hossein Golestan and Treasury Manager Doris Koo, for
the excellent job they did managing this project and all departments for their work in the
development and production of this document. For the past 17 years through the efforts of the
Finance Department our City has received the " Excellence in Budgeting" and " Excellence in
Financial Reporting" statewide awards from the California Society of Municipal Finance
Officers Association ( CSMFO). We are proud of maintaining the highest standards of
professionalism and public disclosure to our community demonstrated by the receipt of these
awards. I am proud to be working alongside such a dedicated and committed group of
individuals.
This is the last Business Plan I will present to the City Council. It has been a privilege to work for city councils that have consistently exhibited the true spirit of public service, worked
collaboratively to balance interests of the current community with the vision necessary to plan
for the future, and conducted themselves with the highest ethical standards. It has also been an honor to have worked with so many talented individuals in the City organization and with
engaged members of the residential and business communities. San Mateo is truly an extraordinary community and city government. Thank you and thanks to all of the previous
councils I have served. I will forever treasure the opportunity to work with so many to keep San Mateo a great community and ensure its continued vitality and desirability in the future. Thank you for your continued support for our organization.
City Manager
Attachment A: General Fund Changes
Attachment B: Special Funds Changes
Attachment C: Capital Improvement Projects
Attachment D: Financial Summary of the General Funds Budget
Attachment E: Budget Calendar
Page 7 of 7
1- 8
2008- 2009
GENERAL FUND OPERATING BUDGET CHANGES*
Item
No. Description
Increase/
( Reduction) FTE Change
A. Police
􀁺 Elimination of designated funding for Narcotics Enforcement Team: ($ 420,000) **
● Addition of 1.0 FTE Administrative Aide position for the Red Light Camera operation
and net decrease of 0.95 FTE Per Diem and decrease of 0.16 FTE Overtime to provide
partial funding. The net impact to General Fund:$ 25,000, ( 0.11) FTE
Limited Term: ($ 420,000) 0.00
On- going: $ 25,000 ( 0.11)
B. Fire
􀁺 Additional funding for Citizens' Emergency Response Training ( CERT) program:
0.34 overtime FTE, $ 46,000
On- going: $ 46,000 0.34
C. Parks & Recreation
􀁺 Elimination of designated funding for Parks safety and Security: ($ 157,000) **
􀁺 Elimination of 1.0 FTE Tree Trimmer, 1.0 FTE Tree Lead Worker, 1.0 FTE Master
Swim Coach to fund other operating programs and overall additional of 1.10 FTE part-time
and 0.01 FTE overtime costs: $ 0
􀁺 Shift of 0.30 FTE Golf Services Manager and 0.55 FTE Secretary from Golf:
$ 100,000 to reflect responsibilities for General Fund programs
􀁺 Defund limited term Recreation Marketing Program: ($ 25,000)
􀁺 Net addition of contractual funding for Landscape Resource: $ 100,000
Limited Term: ($ 182,000) 0.00
On- going: $ 200,000 ( 1.04)
D. Community Development
􀁺 Transfer Management of City owned leased retail property from RDA: $ 112,000,
0.25 FTE Housing Specialist and 0.10 FTE Secretary for a total of 0.35 FTE
􀁺 Funding for a portion of General Plan Update: 100,000
􀁺 Additional funding for Workers Resource Center:$ 50,000
􀁺 Reduction of .50 FTE Part- time Program Assistant staff due to re-restructuring:($
20,000)
On- going: $ 242,000 ( 0.15)
E. Public Works
􀁺 Additional funding for City/ County Assoc of Governments( C/ CAG) membership: $ 115,000
􀁺 Additional funding for Graffiti Abatement program: $ 50,000
􀁺 Additional funding for Public Noticing: $ 10,000
􀁺 Elimination of 1 FTE Traffic Lighting Technician and addition of funding for
contractual budget: $( 0), ( 1) FTE
􀁺 Partial re- allocation of various engineering/ administrative positions to Special Funds
and projects: ($ 150,000), ( 1.76) FTE
􀁺 Other additional contractual funding for Storm Water Pollution Control and Marina
Lagoon program: $ 180,000
􀁺 Reallocate Senior Lighting Technician to Public Works Supervisor: $ 0, 0 FTE
On- going: $ 205,000 ( 2.76)
* This Table reflects notable changes in the adopted 2008- 09 budget over the adopted
2007- 08 budget
** Due to shortage of funds, these programs are adopted to continue with funding to
come from budget savings expected to materialize during the budget year.
Attachment A
1- 9
Item
No. Description
Increase/
( Reduction) FTE Change
F. Information Technology
􀁺 Addition of 2.0 FTE System Analysts for 1 year to enhance City Technology
Capacity: $ 234,000
Limited Term: $ 234,000 2.00
G. Finance
􀁺 Restructure Central Services and office functions to reduce 0.4 FTE and increase
contractual services: $ 0, ( 0.40) FTE
􀁺 Reduction of Diodotti lease budget: ($ 20,000)
􀁺 Shift 45% of the Purchasing Supervisor budget to Fleet Maintenance Fund for better
cost tracking: ($ 65,000) and ( 0.45) FTE
On- going: ($ 85,000) ( 0.85)
H. Manager
􀁺 Addition of limited term funding for Sustainability initiatives: $ 100,000
Limited Term: $ 100,000 0.00
I. Library
􀁺 Addition of 0.75 FTE Librarian, deletion of 1.18 FTE Library Assistant and overall net
addition of 0.23 FTE Part- time staff to enhance operation: $ 0, ( 0.20) FTE
􀁺 Fund Volunteer Co- coordinator and Technical Support program on an on- going
basis:$ 0
Limited Term ($ 160,000) ( 2.00)
On- going: $ 160,000 1.80
J. Human Resources
􀁺 Deletion of limited term Secretary position: ($ 85,000) and ( 1.0) FTE
Limited Term: ($ 85,000) ( 1.00)
Limited Term Sub- total: ($ 513,000) ( 1.00)
On- going Sub- total: $ 793,000 ( 2.77)
K. Other
Increase in Building and Fleet Maintenance budget , due to increased costs, new
Library, and budgeting change $ 400,000
Operating Expense ( non salary) Budget increase $ 450,000
Reduced funding for Worker Compensation due to favorable claims experience ($ 500,000)
Future Compensation/ Benefits, contracted or estimated $ 2,773,000
$ 0
Net Total Change in General Fund Operating Budget $ 3,403,000 ( 3.77)
FTE Breakdown Limited term Ongoing
Merit/ fulltime ( 1.00) ( 3.94)
Part time 0.00 0.88
Overtime 0.00 0.29
Total ( 1.00) ( 2.77)
Attachment A
1- 10
2008- 2009
SPECIAL FUNDS OPERATING BUDGET CHANGES ( Including RDA) *
Item
No. Description Increase
( Reduction)
FTE
Change
A. Community Development
􀁺 City Housing Loan Program: Decrease due to reduction in prior year fund
balance: ($ 100,000)
􀁺 Federal HOME Grant Program: Decrease due to shift of funds to Capital
Projects:($ 550,000)
􀁺 Construction Services: Eliminate 1.0 FTE Deputy Building Official position and
the Computer Software Upgrade budget:($ 450,000)
􀁺 Shifting of the Retail Tenant Lease Management program to General Fund:
($ 112,000), ( 0.35) FTE
􀁺 Reduction of Redevelopment Agency Debt Service budget due to refinancing ( not
on- going): ($ 420,000)
􀁺 Overall net adjustment to part- time and overtime budget of the Redevelopment
Agency and other funds: ($ 15,000), ( 0.26) FTE
($ 1,447,000) ( 1.61)
B. Golf
􀁺 Defund ( not eliminate) 1.0 merit FTE and add per diem FTE of 0.64 Maintenance
Worker: $ 65,000; 0.64 FTE
􀁺 Reduction of Golf Debt Service: ($ 350,000) due to refinancing, not on- going
􀁺 Shifting of 0.30 FTE Golf Services Manager and 0.55 FTE Secretary to General
Fund to reflect time spent on General fund programs/ projects: ($ 100,000), ( 0.85)
FTE
($ 515,000) ( 0.21)
C. Public Works
􀁺 Elimination of 6 FTE in various program - ( 1) Street Sweeper, 2) Public Works
Maintenance Worker,( 2) Facility Maintenance Workers,( 1) Senior Management
Analyst to shift funding for contractual budgets: $( 0),( 6) FTE
􀁺 Provide additional funding for Chemicals purchase and various Sewer
Maintenance :$ 500,000
􀁺 Respond to the increased requirement of the Regional Water Quality Board by
providing additional Sewer funding to re- structure the operation to implement the
Sanitary Sewer Management Plan: $ 450,000 ( includes the creation of 3.0 FTE for
various Sewer functions- Source Control Inspector, Public Works Supervisor and
Database Specialist).
􀁺 Reallocate ( 3) positions to different classifications in order to address Sanitary
Sewer Management Plan Implementation :$ 0, ( 0) FTE
􀁺 Additional funding for purchase of Sewer Machinery and Equipment:$ 550,000
􀁺 Shifting from General Fund engineering/ administrative staff time:$ 150,000, 1.76
FTE
$ 1,650,000 ( 1.24)
* This table reflects increases ( reductions) in the adopted 2008- 09 budget over
adopted 2007- 08 budget
Attachment B
1- 11
Item
No. Description Increase
( Reduction)
FTE
Change
D. Finance
􀁺 Shifting from General Fund 45% of Purchasing Supervisor budget to Fleet
Maintenance Fund:$ 65,000, 0.45 FTE
$ 65,000 0.45
E. Fire Prevention
􀁺 Reduction of funding for Fire Inspection staff to reflect current staffing pattern:
($ 350,000)
($ 350,000) 0.00
Sub- Total: ($ 597,000) ( 2.61)
F. Other
􀁺 Operating Budget COLA $ 200,000
􀁺 Fleet and Building Maintenance budget $ 150,000
􀁺 Employee Compensation; COLA/ benefits $ 1,050,000
Net Total Change in Special Funds Operating Budget $ 803,000 ( 2.61)
FTE Breakdown
On- going
Merit/ Fulltime ( 2.99)
Part time 0.16
Overtime 0.22
Total ( 2.61)
Attachment B
1- 12
2008- 2009
SUMMARY OF SIGNIFICANT CAPITAL PROGRAM PROJECTS
Item
No. Description Amount
A. Citywide Street Rehabilitation $ 4,686,636
B. WWTP Phase II Expansion $ 2,500,000
C. Citywide Sanitary Sewer Rehabilitation $ 1,688,000
D. 25th Ave Grade Separation $ 1,210,000
E. Sanitory Sewer Lines Closed Circuit TV Inspection $ 750,000
F. Citywide Sidewalk Repair Program $ 500,000
G. Other Net Changes $ 728,455
TOTAL CITY: $ 12,063,091
Redevelopment Agency
H. Housing Land Purchase $ 1,200,000
I. Downtown Parking Improvements $ 1,000,000
J. Downtown Specific Plan Implementation $ 750,000
K. Downtown Planning and Projects $ 386,000
L. Other Net Changes $ 780,000
TOTAL RDA: $ 4,116,000
TOTAL CITY AND RDA: $ 16,179,091
Attachment C
1- 13
I II III IV V
Last Year
Actual Adopted Estimate Adopted Projected
06- 07 07- 08 07- 08 08- 09 09- 10
A.
Beginning Fund
Balance $ 1.92 $ 2.40 $ 2.40 $ 0.90 $ 1.00
B. Revenues $ 75.94 $ 7 9.33 $ 7 9.50 $ 83.60 $ 87.42
( ONGOING)
C. Expenditures $ ( 74.35) $ ( 80.56) $ ( 79.20) ( 1) $ ( 85.40) $ ( 89.00)
( Ongoing, incl. Trf. to CIP)
D. Transfers,
Operating Reserve
& $ ( 1.11) $ ( 1.17) $ ( 1.80) ( 2) $ 1.10 ( 3) $ ( 0.57)
One Time Adjs.
E. Ending Fund $ 2.40 $ 0 .00 $ 0 .90 $ 0.20 $ ( 1.15)
Balance
F. Estimated Actual $ 2.40 $ 1 .30 $ 0 .90 $ 1.00 $ ( 0.35)
( projections assume $ 0.8M annual budget savings)
NOTES:
1- The amounts on line C above include only ongoing General Fund expenses ,
including the transfer to the CIP ( Capital Program).
2 - Includes year- end budget amendments of $ 5.6M to CIP.
3- The $ 1.1M net amount on line D for 08- 09 includes $ 2M one- time transfer from Service Stability Reserve
Current Year Business Plan 08- 10
FINANCIAL SUMMARY
GENERAL FUNDS ONLY
City of San Mateo
($ millions)
Attachment D
1- 14
BUDGET CALENDAR
2008- 2009 FISCAL YEAR / BUDGET RELATED MATTERS
and
SCHEDULE OF BUSINESS PLAN HEARINGS
SUBJECT IMPORTANT DATES
1. Two Year Business Plan/ Budget sent to City Council .............................................. May 15, 2008
2. Proposed 2008- 09 Budget and Capital Program
♦ 1st Public Hearing – City Council Meeting .................................................... June 2, 2008
3. Annual Assessment Hearings: Laurelwood Drive Assessments ................................. June 2, 2008
4. Establishment of Gann Appropriations Limit............................................................ May 19, 2008
5. General Obligation Bond Tax Rate Levy ................................................................... May 19, 2008
6. City Council Budget Study Session ( If Needed) .......................................................... June 9, 2008
7. City Council Meeting
♦ 2nd Public Hearing ( Proposed for Adoption) ................................................. June 16, 2008
8. Annual Sewer Service Charge Hearing ..................................................................... June 16, 2008
Attachment E
1- 15
1- 16
1- 17
Date of Meeting: 6- 16- 08
Agenda Item: Z 1
TO: Honorable Mayor and City Council
DATE: June 4,2008 hf qA % L
SUBMITTED
BY: -
oris Koo, ~ k d s u r yan d Budget Manager,
42- 77 04
SUBJECT: CITY BUDGET ADOPTION: 2008- 09 Fiscal Year
w Conclude the 2008- 09 Budget public hearing.
Adopt the resolution that approves the City of San Mateo's 2008- 09 Annual Operating Budget in the
amount of $ 1 19.93 million and Capital Improvement Program in the amount of $ 12.06 million, for a total of
$ 1 31.99 million.
BACKGROUND
The Proposed 2008- 09 Budget and the Two Year 2008- 10 Business Plan was released on May 15,2008. The first
public hearing on the Plan was conducted on June 2nd. After this second public hearing adoption of the 2008- 09
budget is being recommended.
SUMMARY
The City adopts an appropriation funding resolution for each separate fiscal year of the Two Year Business Plan.
The resolution presented here is for the first year or FY 2008- 09 of the two year financial planning cycle 2008- 10.
The proposed 2008- 09 City Budget is $ 1 19.93 million for Operating and $ 12.06 million for Capital Improvements. A
separate staff report on the Redevelopment Agency Budget recommends the adoption of $ 14.31 million of
Operating and Capital budgets for the Agency. Summaries of the City Operating and Capital budgets are shown as
Exhibit A. The net FTE ( Full Time Equivalent) reduction is 6.38 positions. See details of FTE changes and various
recommended departmental personnel changes in Exhibit B.
FISCAL IMPACT
Estimated revenues and fund balances are sufficient to meet the City's expenditure plan for FY 2008- 09.
Attachments: Exhibit A and B
1- 18
1- 19
1- 20
1- 21
1- 22
City of San Mateo
2- 1
City of San Mateo and Redevelopment Agency
TOTAL FUNDING SOURCES
2008 - 2009: $ 146 million
Other Revenue***
5%
Sales Tax
13%
City Prop. Tax & Assessment
19%
Property Tax in Lieu of VLF
5%
Sewer Fees
15%
Recreation Fees
2%
Redevelopment Prop. Tax
9%
Other Taxes*
8%
Other User Fees**
4%
Licenses, Permits & Franchises
9%
Interest Income/ Leases &
Rent in lieu
4%
Use of Fund Balance
2%
Federal, State &
Other Agencies
5%
* Other Taxes includes Property Transfer Tax, Hotel Tax and Pari- Mutuel Tax.
** Other User Fees includes Library, Golf, BFI surcharge/ fee, Fire Fees and all Impact Fees.
*** Other Revenue includes Indirect Charges, Fines and Forfietures, One- Time Revenue, Other Misc. Revenue and Use of ( Contribution to) Fund Balance.
Total Revenue: $ 1 43.43
( Contribution to)/ Use of Fund Balance: 2 .87
$ 146.30
Two Year Business Plan 2008 - 2010
2- 2
City of San Mateo and Redevelopment Agency
TOTAL EXPENDITURES BY FUND
2008 - 2009: $ 146 million ( All Funds)
Redevelopment Agency
7%
Capital Improvement
11%
General Funds
57%
Sewer
14%
Other Funds*
8%
Debt Service
3%
* Other Funds includes: Advance Planning, Golf, Grants, Solid Waste, CDBG, City Housing,
Home, Construction Services, Fire Prevention and CPID.
City of San Mateo
2- 3
City of San Mateo
GENERAL FUND OPERATING BUDGET RESOURCES
2008 - 2009: $ 83 million
Gas Tax
2%
Sales Tax
21%
Transfer Tax
Property Tax in Lieu of 8%
VLF
9%
Hotel Tax
4%
Business License
4%
Park & Recreation/ Library
4%
Other Revenue
17%
Property Tax
31%
* Other Revenue includes Franchise Fees, Interest Income, Pari- mutuel, Fines & Forfeits, Indirect Costs,
Rent from Sewer Fund, Golf In Lieu, VLF, other misc. revenue and Use of ( Contribution to) Fund Balance.
Total Revenue: $ 8 3.57
( Contribution to)/ Use of Fund Balance: ( 0.25)
$ 83.32
Two Year Business Plan 2008 - 2010
2- 4
City of San Mateo
OPERATING BUDGET BY FUNCTION
GENERAL FUNDS
2008 - 2009: $ 83 million
Fire
22%
Park & Recreation
15%
Policy Development
3%
Library
7%
Liability Insurance
1%
General Management
10%
Operating Reserve/ Other
1%
Police
34%
Public Works
6%
Community Development
1%
City of San Mateo
2- 5
City of San Mateo
PROPERTY TAX REVENUE
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
' 77 ' 78 ' 79 ' 80 ' 81 ' 82 ' 83 ' 84 ' 85 ' 86 ' 87 ' 88 ' 89 ' 90 ' 91 ' 92 ' 93 ' 94 ' 95 ' 96 ' 97 ' 98 ' 99 ' 00 ' 01 ' 02 ' 03 ' 04 ' 05 ' 06 ' 07 ' 08 ' 09 ' 10
Actual Projections Constant dollars Fiscal Year Total
Two Year Business Plan 2008 - 2010
2- 6
City of San Mateo
SALES TAX REVENUE
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
' 77 ' 78 ' 79 ' 80 ' 81 ' 82 ' 83 ' 84 ' 85 ' 86 ' 87 ' 88 ' 89 ' 90 ' 91 ' 92 ' 93 ' 94 ' 95 ' 96 ' 97 ' 98 ' 99 ' 00 ' 01 ' 02 ' 03 ' 04 ' 05 ' 06 ' 07 ' 08 ' 09 ' 10
Actual Projected FY Totals Constant Dollars Fiscal Year Totals
City of San Mateo
2- 7
ADOPTED BUDGET 2008- 09
FINANCIAL SUMMARY BY FUND
A B C D E F G H I
(+) (+) (+) (-) (-) (-) (=)
ESTIMATED Est. Unres.
FUND BALANCE REVENUES INTERFUND TRANSFERS EXPENDITURES Fund Balance
No. Name of Fund 6/ 30/ 2008 2008- 09 In Out Operating C. I. P. 6/ 30/ 2009
10 General $ 900,000 $ 79,296,265 $ 3,625,000 $ 4,397,578 e $ 76,246,293 $ 2,935,000 242,394
18 Recreation 0 $ 2,673,010 4,397,578 7,070,588 0
17 Reserves 11,130,000 a 2,000,000 9,130,000
20 Police Grants 48,630 $ 191,500 189,751 50,379
21 Solid Waste Fund 550,000 $ 1,041,002 1,111,002 480,000
22 Federal HOME Grant 983 $ 505,900 50,165 455,300 1,418
23 Block Grant 500,000 $ 856,500 802,756 200,000 353,744
24 Fire Protection Fund 24,000 $ 1,556,905 1,556,895 24,011
25 Advance Planning 120,000 $ 295,000 331,481 83,519
26 Construction Services 2,600,000 $ 3,395,965 4,164,062 300,000 1,531,903
27 Gas Tax 17,000 $ 3,462,271 1,600,000 1,870,771 8,500
28 Parking District 3,400,000 $ 1,782,000 1,539,256 275,000 3,367,744
30 Housing- City 50,000 $ 5,000 30,000 25,000
41 Landfill Bond ( Debt Service) 1,200,000 $ 505,000 497,220 1,207,780
48 G. O. Bonds 97,885 $ 2,920,000 25,000 2,941,475 51,410
56 2% Hotel Tax 1,500,000 $ 944,000 929,280 1,514,720
72 Sewer Service 2,300,000 $ 22,839,000 19,876,371 1,816,029 3,446,600
79 Golf ( 300,000) $ 2,678,000 2,591,425 ( 213,425)
81 Vehicle & Equip. Replacement 10,000,000 b 2,704,612 c 2,454,612 c 10,250,000 c
82 Fleet and Building Maint. 50,000 b 3,500,490 c 3,432,854 c 117,636 c
87 Worker's Compensation 7,500,000 b 2,200,000 c 3,377,521 c 6,322,479 c
88 Liability Insurance 700,000 b 850,000 c 1,112,978 c 437,022 c
59 Other C. I. P. Funds 0 4,210,991 0 4,210,991 0
Total City 24,138,498 129,658,309 8,022,578 8,022,578 119,928,020 12,063,091 21,305,696
29 Housing - R. D. A. $ 1,200,000 3,030,000 2,135,200 1,680,000 414,800
57 M erged Area - R. D. A. 2,100,000 10,741,728 8,055,547 2,436,000 2,350,181
Total Redevelopment 3,300,000 13,771,728 0 0 10,190,747 4,116,000 2,764,981
TOTAL CITY & R D A $ 27,438,498 $ 143,430,037 $ 8,022,578 $ 8,022,578 $ 130,118,767 $ 16,179,091 $ 24,070,677
a. Reserve consist of $ 7.2 million Long Term Emergency Reserve and $ 3.93 million Service Stability Reserve. TOTAL OPERATING & C. I. P.
These reserves will be appropriated on an as needed basis. CITY OPERATING & C. I. P. $ 131,991,111
b. Informational figures only ( not included in totals). These are internal service funds.
c. Only interest income is added to total revenues. The rest of the revenues represent interfund charges. R. D. A. OPERATING & C. I. P. 14,306,747
d. Transfers out of the General Fund are to Recreation and CIP.
GRAND TOTAL CITY & R. D. A. BUDGET $ 146,297,858
Two Year Business Plan 2008 - 2010
2- 8
PROJECTED BUDGET 2009- 10
FINANCIAL SUMMARY BY FUND
A B C D E F G H I
(+) (+) (+) (-) (-) (-) (=)
ESTIMATED Est. Unres.
FUND BALANCE REVENUES INTERFUND TRANSFERS EXPENDITURES Fund Balance
No. Name of Fund 6/ 30/ 2009 2009- 10 In Out Operating C. I. P. 6/ 30/ 2010
10 General $ 1,042,394 a $ 83,076,274 $ 1,625,000 $ 4,627,004 e $ 79,319,071 $ 2,935,000 ( 1,137,407)
18 Recreation $ 0 2,742,010 4,627,004 7,369,014 0
17 Reserves $ 9,130,000 b 9,130,000
20 Police Grants $ 50,379 191,500 197,900 43,979
21 Solid Waste Fund $ 480,000 1,085,548 1,157,650 407,898
22 Federal HOME Grant $ 1,418 505,000 51,918 454,500 0
23 Block Grant $ 353,744 853,000 818,091 250,000 138,652
24 Fire Protection fund $ 24,011 1,651,484 1,651,473 24,021
25 Advance Planning $ 83,519 350,000 347,390 86,128
26 Construction Services $ 1,531,903 3,485,844 4,351,397 666,350
27 Gas Tax $ 8,500 2,829,630 1,600,000 1,238,130 0
28 Parking District $ 3,367,744 1,862,000 1,573,051 275,000 3,381,694
30 Housing- City $ 25,000 5,000 30,000 0
41 Landfill Bond ( Debt Service) $ 1,207,780 505,000 495,967 1,216,813
48 G. O. Bonds $ 51,410 2,920,000 25,000 2,946,410 0
56 2% Hotel Tax $ 1,514,720 984,000 1,091,319 1,407,401
72 Sewer Service $ 3,446,600 23,710,000 20,370,766 4,910,900 1,874,935
79 Golf ($ 213,425) 2,733,000 2,684,499 ( 164,924)
81 Vehicle & Equip. Replacement $ 10,250,000 c 2,704,612 d 2,454,612 c 10,500,000 c
82 Fleet and Building Maint. $ 117,636 c 3,608,002 d 3,557,542 c 168,095 c
87 Worker's Compensation $ 6,322,479 c 2,200,000 d 3,422,964 c 5,099,515 c
88 Liability Insurance $ 437,022 c 850,000 d 1,147,956 c 139,066 c
59 Other C. I. P. Funds $ 0 4,008,862 4,008,862 0
T otal City 22,105,696 133,998,152 6,252,004 6,252,004 124,455,918 14,072,392 17,075,538
29 Housing Set- Aside - R. D. A. $ 414,800 2,880,000 0 0 2,194,861 585,000 514,939
57 M erged Area - R. D. A. $ 2,350,181 11,013,496 0 0 9,665,396 1,614,000 2,084,282
Total Redevelopment 2,764,981 13,893,496 0 0 11,860,256 2,199,000 2,599,221
TOTAL CITY & R D A $ 24,870,677 $ 147,891,648 $ 6,252,004 $ 6,252,004 $ 136,316,174 $ 16,271,392 $ 19,674,759
a. The beginning general fund balance includes $ 800,000 assumed prior year expenditure savings. TOTAL OPERATING & C. I. P.
b. Reserve consist of $ 7.2 million Long Term Emergency Reserve and $ 1.93 million Service Stability Reserve. CITY OPERATING & C. I. P. $ 138,528,310
These reserves will be appropriated on an as needed basis.
c. Informational figures only ( not included in totals). These are internal service funds. R. D. A. OPERATING & C. I. P. 14,059,256
d. Only interest income is added to total revenues. The rest of the revenues represent interfund charges.
e. Transfers out of the General Fund are to Recreation and CIP. GRAND TOTAL CITY & R. D. A. BUDGET $ 152,587,566
City of San Mateo
2- 9
BUDGET COMPARISONS BY YEAR
Adopted Adopted Total
Year Population City Operating Budget City Budget ( including Net Assessed Values
Capital Improvements)
Number % Chg $ Amount % Chg $ Amount % Chg $ Amount % Chg
( in thousands) ( in thousands) ( in thousands)
1974- 75 7 7,800 0.9% 1 4,274 8% 1 8,146 37% 1 ,204,401 13%
1975- 76 7 8,100 0.3% 1 5,721 10% 2 8,941 59% 1 ,316,210 9%
1976- 77 7 8,400 0.4% 1 6,787 6% 3 2,405 11% 1 ,417,892 7%
1977- 78 7 7,200 - 1.5% 2 2,498 30% 4 1,890 29% 1 ,926,175 36%
1978- 79 7 6,700 - 0.6% 2 1,480 - 4% 2 9,432 - 30% 1 ,842,285 4%
1979- 80 7 7,000 0.4% 2 1,830 2% 2 6,801 - 9% 2 ,031,526 10%
1980- 81 7 7,700 0.9% 2 4,073 10% 2 8,316 6% 2 ,310,554 14%
1981- 82 7 7,900 0.2% 2 7,274 13% 3 5,785 26% 2 ,590,808 12%
1982- 83 7 8,300 0.5% 2 9,170 7% 4 0,834 14% 2 ,951,042 14%
1983- 84 7 9,600 1.7% 3 0,948 6% 3 6,795 - 10% 3 ,262,997 11%
1984- 85 8 0,900 1.6% 3 4,116 10% 5 0,646 38% 3 ,509,546 8%
1985- 86 8 1,900 1.2% 4 0,285 18% 50,636 - 0.02% 3,868,369 10%
2 Year
1984- 86 80,900 3.3% 7 4,401 24% 1 01,282 30% 3 ,509,546 19%
1986- 88 83,376 3.1% 9 4,691 27% 1 27,125 25% 4 ,252,958 21%
1988- 90 85,082 0.9% 9 3,853 1% 1 19,315 - 6% 4 ,768,002 12%
1990- 92 86,297 1.1% 1 08,267 15% 1 43,263 20% 5 ,579,483 17%
1992- 94 89,355 1.4% 1 20,412 11% 1 27,689 - 12% 6 ,061,218 8.6%
1994- 95** 92,107 3.5% 6 0,352 0.8% 7 9,006 19.9% 6,479,908 6.9%
1995- 96 91,200 3.0% 6 3,531 5.3% 7 5,447 - 4.5% 6,670,408 5.6%
1996- 97 92,180 2.0% 6 3,414 - 2.0% 8 0,625 6.8% 6,846,413 2.6%
1997- 98 93,630 1.5% 6 8,352 7.8% 8 7,521 8.6% 7,179,388 4.8%
1998- 99 94,650 1.0% 7 1,216 4.2% 1 06,074 21.2% 7,753,739 8.0%
1999- 00 94,293 - 0.4% 7 3,787 3.6% 1 04,740 - 1.3% 8,595,371 10.9%
2000- 01 95,390 1.2% 8 1,796 10.9% 1 46,572 39.9% 9,369,033 9.0%
2001- 02 93,900 - 1.6% 8 9,584 9.5% 1 33,150 - 9.2% 10,553,723 12.6%
2002- 03 94,057 0.2% 9 1,635 2.3% 1 30,945 - 1.7% 11,279,526 7.0%
2003- 04 93,721 - 0.4% 8 9,883 - 2.0% 1 09,654 - 16.0% 11,675,254 4.0%
2004- 05 93,050 - 0.7% 96,222 7.0% 110,349 0.5% 12,374,347 6.0%
2005- 06 94,212 1.2% 100,720 4.6% 111,070 0.7% 13,167,799 6.4%
2006- 07 94,315 0.1% 110,237 9.5% 119,185 7.3% 14,312,987 8.6%
2007- 08 95,510 1.3% 116,041 5.2% 129,487 8.6% 15,496,381 8.3%
2008- 09 95,778 0.3% 119,928 3.3% 131,991 1.9% 16,736,091 8.0%
Column 1: Source - Population Reserach Division; Department of Finance, State of California as of June 1 each year.
2008- 09 Net Assessed Values are based on estimates only.
Column 2 & 3: a) Figures shown include General Purpose Funds, Special Revenue Funds, Enterprise Funds, and
Debt Service Funds, but exclude Redevelopment Agency
b) 1988- 90 Capital Improvement Program includes $ 1,534,414 for operating ( F10,11,12) Capital Outlay
* Because of the switch to a two- year budget, from 1984- 86 to 1992- 1994, the figures for population & assessed
values compare the first of the two year period with the first year of the prior two year period. The % change
shown relates to the two year span.
** Beginning 1994- 1995, the City is back to a one- year budget.
*
* * * *
*
* * * *
Two Year Business Plan 2008 - 2010
2- 10
CITY OF SAN MATEO PERSONNEL
FULL TIME EQUIVALENT POSITIONS
ADOPTED CHANGES: Adopted 08- 09 vs. Adopted 07- 08
( See Budget Letter for Explanation)
DOIT 2.00 M
RDA 0.43 M/ P/ O Summary of Changes
Fire 0.34 O
Police ( 0.11) P/ O Merit ( 7.93)
Library ( 0.20) M/ P Part- time 1.04
Business Services ( 0.40) M/ P/ O Over- time 0.51
Human Resources ( 1.00) M Total ( 6.38) FTE decrease
CDD ( 2.19) M/ P/ O
Parks & Rec ( 1.25) M/ P/ O
Public Works ( 4.00) M M = Merit
Total: ( 6.38) P = Part- time
O = Overtime
PERSONNEL SUMMARY - BY CATEGORY
Category 02- 03 03- 04 04- 05 05- 06 06- 07 07- 08 08- 09 09- 10
Total Merit 626.45 596.60 572.08 576.08 585.43 587.68 579.75 576.75
Total Part- time 114.88 100.41 86.67 84.42 94.36 93.16 94.20 94.20
Total Overtime 24.95 22.67 18.92 18.62 23.84 23.30 23.81 23.81
OVERALL TOTALS 766.28 719.68 677.67 679.12 703.63 704.14 697.76 694.76
PERSONNEL SUMMARY - BY DEPARTMENT
Department 02- 03 03- 04 04- 05 05- 06 06- 07 07- 08 08- 09 09- 10
City Council 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
City Manager 7.40 5.55 5.25 5.25 5.25 5.25 5.25 5.25
Civic Facilities 3.90 0.00 0.00 0.00 0.00 0.00 0.00 0.00
City Clerk 3.57 3.07 3.02 3.02 3.02 3.02 3.02 3.02
City Attorney 4.87 4.56 4.52 4.52 4.52 4.52 4.52 4.52
Business Services 17.96 17.30 15.95 16.95 16.97 16.97 16.57 16.57
Mgmt. Info. Svcs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Communications 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Information Technology 18.90 18.15 15.20 15.20 16.20 16.20 18.20 15.20
Human Resources 13.59 9.52 9.82 9.82 9.82 10.82 9.82 9.82
Community Development 47.16 47.61 45.89 45.69 43.05 43.55 41.36 41.36
Public Works 134.14 127.71 122.08 122.08 124.45 124.45 120.45 120.45
Police 182.57 174.27 163.34 164.34 172.05 173.05 172.94 172.94
Fire 109.03 102.75 100.62 100.52 104.54 104.00 104.34 104.34
Parks & Recreation 146.33 139.45 125.85 125.85 130.08 130.08 128.83 128.83
Library 57.62 51.79 49.58 49.33 54.86 53.41 53.21 53.21
TOTAL CITY 752.04 706.73 666.12 667.57 689.81 690.32 683.51 680.51
Redev. Agency 14.24 12.95 11.55 11.55 13.82 13.82 14.25 14.25
GRAND TOTAL 1, 2 766.28 719.68 677.67 679.12 703.63 704.14 697.76 694.76
NOTES:
1 Full- time equivalents including part- time employees and overtime.
2 07- 08 FTE totals include amendments that occurred during the year.
City of San Mateo
2- 11
EXPENDITURE ASSUMPTIONS
2008- 2010 BUSINESS PLAN
1. PERSONNEL
♦ Contracted or estimated adjustments to maintain employee compensation at market median
is included in the Business Plan.
♦ Included in the base budget are a number of programs and activities previously funded with
one time funds. Refer to the budget transmittal letter for more information.
♦ Narcotics Enforcement Team and Park Security programs budgets totaling $ 0.6M per year
are assumed to be funded with budget savings through vacancy management and other cost
savings in the Police and Park and Recreation departments.
♦ Reduced workers compensation costs by $ 0.5M annually due to recent favorable claims
experience.
2. OPERATING
♦ Increase in operating accounts of 3% per year. Additional costs of specific items, including
building and fleet maintenance totaling $ 0.4M per year, are included.
♦ Operating contingency of $ 500,000 per year to cover unexpected expenditures or revenue
shortfall. This reserve may only be used with the approval of the City Manger.
♦ Emergency and Service Stability Reserves will be $ 7.2M and $ 2.1M respectively. The
Service Stability Reserve was $ 5.5M at 6/ 30/ 07. This included $ 1.4M surplus fund balance
temporarily placed there and subsequently allocated to CIP in 07- 08 fiscal year, leaving
$ 4.1M of which $ 2M is planned to be used in 08- 09. The use of these reserves is at the
discretion of the City Council.
3. CAPITAL OUTLAY
♦ Departmental operating budgets include amortization/ rental charges at that will be
marginally acceptable to fund the replacement of Vehicle and Equipment at the end of their
useful life. Due to budget constraints the funding level is the same as 07- 08 which is at
$ 0.25M per year below the desired amount.
4. TRANSFERS
♦ The annual transfer from the general fund to the capital improvement program ( CIP) of
$ 2.94M, representing an increase of $ 0.35M, from $ 0.15M to $ 0.5M, for sidewalk repair.
♦ For other transfers between funds, refer to Schedule of Interfund Transfers.
Two Year Business Plan 2008 - 2010
2- 12
BUDGET SUMMARY BY PROGRAM
DEPARTMENT AND PROGRAM ACTUAL BUDGET ADOPTED PROJECTED
2006- 07 2007- 08 2008- 09 2009- 10
( As amended)
CITY COUNCIL
Legislative Operation 197,660 235,602 250,792 258,071
Community Promotion 104,043 103,618 111,388 115,207
Intergovrn't Relations 76,208 87,699 94,992 98,316
$ 377,912 $ 426,919 $ 457,171 $ 471,595
CITY MANAGER
City Management 1,022,783 1,147,953 1,267,514 1,326,078
$ 1,022,783 $ 1,147,953 $ 1,267,514 $ 1,326,078
CITY CLERK
Council Support 301,407 319,482 327,453 343,011
Records Management 93,755 92,429 95,294 99,875
Elections 1,660 46,633 48,032 49,474
$ 396,822 $ 458,544 $ 470,780 $ 492,360
CITY ATTORNEY
Legal Counsel 766,492 800,002 859,890 901,417
Claims and Litigation Defense 1,079,402 * 1,081,612 * 1,112,978 * 1,147,956 *
$ 766,492 $ 800,002 $ 859,890 $ 901,417
BUSINESS SERVICES
Accounting Services 1,088,563 1,163,406 1,162,875 1,211,205
Treasury/ Cash Management 775,175 869,517 950,414 993,774
Central Services 615,076 715,250 685,849 714,654
Fleet Services 1,425,261 # 1,400,959 # 1,629,273 # 1,679,511 #
$ 2 ,478,814 $ 2,748,173 $ 2,799,137 $ 2,919,633
INFORMATION TECHNOLOGY
Software & Strategic Supt 1,482,691 1,654,608 1,971,959 1,809,002
Systems & Network Support 1,561,993 1,535,000 1,503,345 1,552,668
$ 3 ,044,685 $ 3,189,608 $ 3,475,304 $ 3,361,670
HUMAN RESOURCES
Recruit/ Selec/ Classific. 518,169 506,947 390,312 418,297
Employee Relations 375,343 387,596 460,684 482,106
Employee Svcs/ Training 554,788 638,900 637,342 652,465
Wrkrs Comp/ Self Ins. Acts 1,590,637 # 2,580,229 # 3,377,521 # 3,422,964 #
$ 1 ,448,299 $ 1,533,443 $ 1,488,338 $ 1,552,867
COMMUNITY DEVELOPMENT
Current Planning 979,310 926,853 1,023,932 949,404
Advance Planning 292,237 329,887 331,481 347,390
Building Permits 2,824,593 3,927,004 3,632,028 3,793,664
NIH Programs 2,081,990 1,165,234 499,975 499,052
Code Enforcement 519,762 745,667 780,759 808,769
Econ Dev/ Bus Asst 49,248 63,740 176,804 183,358
Civil Facilities 136 ( 0) 0 ( 0)
CD Program Support 4,467 ( 97) 0 0
$ 6,751,744 $ 7,158,286 $ 6,444,979 $ 6,581,637
Note:
* Informational figures only. The actual transfer made to the internal service fund is included in total city budget
and is shown in the " Debt Service & Non Departmental" section.
# Informational figures only. Not included in totals since it is already included in departmental budgets.
City of San Mateo
2- 13
BUDGET SUMMARY BY PROGRAM
DEPARTMENT AND PROGRAM ACTUAL BUDGET ADOPTED PROJECTED
2006- 07 2007- 08 2008- 09 2009- 10
( As amended)
POLICE
Field Operation Services 15,316,487 16,747,726 17,496,997 18,361,173
CPID Security 309,226 345,448 276,214 289,888
Investigation Services 2,281,930 2,662,252 2,832,926 2,970,658
Support Services 5,835,651 6,188,774 6,493,785 6,795,259
Contractual Liaison 1,320,977 1,457,224 1,463,449 1,507,353
Police Grants 552,279 172,354 189,751 197,900
$ 2 5,616,550 $ 27,573,779 $ 28,753,121 $ 30,122,230
FIRE
FD Operations 15,500,200 16,118,734 15,385,259 16,127,327
FD Training 248,749 260,919 319,830 335,071
FD Protection & Life Safety 1,512,789 1,869,711 1,556,895 1,651,473
FD Emergency Planning 259,167 355,443 442,305 459,436
FD Administration 995,484 1,062,603 1,062,738 1,113,942
EMS 0 0 918,839 960,582
$ 1 8,516,388 $ 19,667,409 $ 19,685,865 $ 20,647,830
PUBLIC WORKS
Traffic Engineering 723,184 859,769 998,985 1,034,638
Engineering Services 801,581 910,646 792,381 841,581
Street Maintenance 882,968 904,700 946,955 986,594
Traffic Maintenance 1,462,601 1,536,345 1,690,066 1,767,858
Street Sweeping 361,389 524,551 506,032 525,118
Waste Disposal 439,573 517,241 604,970 632,532
Wastewater Treatment 7,834,389 9,279,145 9,631,608 9,928,153
Wastewater Source Cntrl 276,316 318,444 424,266 444,090
Dale Ave Lift Station 305,564 393,882 446,327 432,161
Sewer Sys Engr Svcs 1,100,387 1,128,404 1,377,035 1,453,018
Sewer Maintenance 3,216,432 4,163,069 4,803,264 4,921,069
Strm Wtr Pollution Cntrl 292,934 427,437 464,985 485,014
Marina Lagoon 306,713 465,789 331,204 334,618
Building Maintenance 1,409,130 # 1,619,182 # 1,803,581 # 1,878,031 #
Parking Operations & Maint 1,177,814 1,450,592 1,227,884 1,273,514
$ 1 9,181,844 $ 22,880,013 $ 24,245,962 $ 25,059,958
PARKS & RECREATION
Beresford Recreation Center 846,179 927,615 915,187 954,724
King Center 548,677 700,028 716,532 751,720
Athletics 992,633 1,061,670 1,062,156 1,094,954
Senior Citizens 678,963 677,489 695,655 727,858
Children's Services Section 1,428,645 1,548,187 1,606,147 1,680,670
Aquatics 618,595 708,578 651,087 682,086
Business Services 1,268,064 1,351,533 1,423,823 1,477,001
Landscape Resources/ Arboriculture 626,901 872,652 785,594 812,448
Landscape Resources/ Horticulture 1,853,095 2,254,784 2,352,925 2,457,668
Landscape Resources/ Visitor Management 341,554 417,832 255,301 275,166
Landscape Resources/ Administration 1,491,839 1,480,732 1,602,065 1,650,539
Golf 1,026,509 2,399,469 2,212,078 2,305,040
Technical/ Admin Services 469,562 577,913 600,610 627,534
$ 1 2,191,215 $ 14,978,481 $ 14,879,159 $ 15,497,408
Note:
# Informational figures only. Not included in totals since it is already included in departmental budgets.
Two Year Business Plan 2008 - 2010
2- 14
BUDGET SUMMARY BY PROGRAM
DEPARTMENT AND PROGRAM ACTUAL BUDGET ADOPTED PROJECTED
2006- 07 2007- 08 2008- 09 2009- 10
( As amended)
LIBRARY
Circulation - Central 808,118 775,485 782,325 808,062
Children's/ Young Adult 287,203 299,070 336,693 351,725
Information Services 745,613 790,082 822,139 858,446
Community Libraries 774,676 742,495 777,360 810,645
Technical Services 813,429 763,578 790,066 826,451
Operations 1,994,313 1,917,232 2,067,637 2,163,393
Literacy 249,947 264,907 283,388 297,083
$ 5 ,673,299 $ 5,552,849 $ 5,859,608 $ 6,115,805
DEBT SERVICE & NON DEPARTMENTAL
General Obligation Bonds 2,913,324 2,932,445 2,941,475 2,946,410
Landfill Bond 498,336 493,165 497,220 495,967
Sewer Revenue Bonds 4,382,501 3,187,009 3,193,870 3,192,275
Golf Bonds 901,420 725,095 379,347 379,460
Liability Insurance 800,000 800,000 800,000 800,000
Operating Reserve 22,300 565,000 500,000 500,000
Measure C Bonds ( 2% Hotel Tax Fund) 87,284 926,000 929,280 1,091,319
$ 9 ,605,165 $ 9,628,714 $ 9,241,192 $ 9,405,431
TOTAL CITY OPERATING BUDGET
$ 1 07,072,012 $ 117,744,172 $ 119,928,020 $ 124,455,918
TOTAL CITY BUDGET
$ 1 07,072,012 $ 117,744,172 $ 119,928,020 $ 124,455,918
City of San Mateo
2- 15
CITY BUDGET: SUMMARY BY FUND
ACTUAL BUDGET ADOPTED PROJECTED
FUND 2006- 07 2007- 08 2008- 09 2009- 10
( As amended)
A. General Funds ( Discretionary)
10 General 1 $ 67,714,488 $ 73,581,924 $ 76,246,293 $ 79,319,071
18 Recreation 6,381,756 6,975,099 7,070,588 7,369,014
Subtotal A: General Funds $ 74,096,244 $ 80,557,023 $ 83,316,881 $ 86,688,086
B. Debt Service Funds ( Non- discretionary)
41 Landfill Bonds 498,336 493,165 497,220 495,967
48 G. O. Bonds 2,913,324 2,932,445 2,941,475 2,946,410
56 2% Hotel Tax ( Measure C Bonds) 87,284 926,000 929,280 1,091,319
Subtotal B: Debt Service $ 3,498,944 $ 4,351,610 $ 4,367,975 $ 4,533,696
C. Special Funds
20 Police Grants 552,279 172,354 189,751 197,900
21 Solid Waste 800,962 1,041,792 1,111,002 1,157,650
22 H. O. M. E. 1,413,309 5 89,169 50,165 5 1,918
23 Block Grant 747,915 8 14,203 8 02,756 8 18,091
24 Fire Prevention 1,512,253 1 ,869,711 1 ,556,895 1 ,651,473
25 Advance Planning 292,237 329,887 331,481 347,390
26 Construction Services 3,344,808 4,463,649 4,164,062 4,351,397
28 Parking District 1,519,344 1,830,257 1,539,256 1,573,051
30 Housing- City 250,201 1 30,000 30,000 3 0,000
72 Sewer 17,115,589 18,469,952 19,876,371 20,370,766
79 Golf 3,040,188 3 ,124,564 2 ,591,425 2 ,684,499
81 Vehicle & Equipment Replacement 2 1,516,136 2,577,904 2,454,612 2,454,612
82 Fleet Service & Building Maint. 2 2,834,392 3,020,141 3,432,854 3,557,542
87 Worker's Compensation 2 1,590,637 2 ,580,229 3 ,377,521 3 ,422,964
88 Liability Insurance 2 1,079,402 1 ,081,612 1 ,112,978 1 ,147,956
Subtotal C: Special Funds $ 30,589,084 $ 32,835,539 $ 32,243,164 $ 33,234,136
Total City Operating Budget $ 108,184,272 $ 117,744,172 $ 119,928,020 $ 124,455,918
Notes:
1 General Fund includes Operating reserve ($ 500K)
2 Dollar amounts are not included in totals. They are already counted in other funds' budgets.
Two Year Business Plan 2008 - 2010
2- 16
CAPITAL IMPROVEMENT PROGRAM
ACTUAL BUDGET ADOPTED PROJECTED
FUND - Description 2006- 07 2007- 08 2008- 09 2009- 10
( As amended)
59 Capital Improvement Budget ( City) $ 34,444,771 $ 13,446,000 $ 12,063,091 $ 14,072,392
Capital Improvement Budget ( RDA) 9,046,075 695,000 4,116,000 2,199,000
Total Capital Improvement Budget $ 43,490,846 $ 14,141,000 $ 16,179,091 $ 16,271,392
REDEVELOPMENT AGENCY
( Operating and Capital Improvement )
ACTUAL BUDGET ADOPTED PROJECTED
FUND - Description 2006- 07 2007- 08 2008- 09 2009- 10
( As amended)
57 Merged Area - Downtown & Shoreline $ 8,630,673 $ 7,887,653 $ 8,055,547 $ 9,665,396
29 Merged Area - Housing 1,907,634 2,029,835 2,135,200 2,194,861
Subtotal: Operating RDA $ 1 0,538,306 $ 9,917,488 $ 10,190,747 $ 11,860,256
59 Capital Improvement - RDA 9,046,075 695,000 4,116,000 2,199,000
Total Redevelopment Agency -
( Operating & Capital ) $ 19,584,382 $ 10,612,488 $ 14,306,747 $ 14,059,256
City of San Mateo
2- 17
SCHEDULE OF INTERFUND TRANSFERS
Adopted Projected
2008- 09 2009- 10
T R A N S F E R T R A N S F E R
IN OUT IN OUT
GENERAL FUND ( 10)
From G. O. Bonds ( 48) $ 2 5,000 $ 25,000
From Gas Tax ( 27) 1,600,000 1,600,000
From Reserves ( 17) 2,000,000 -
To Recreation ( 18) 4,397,578 4,627,004
To C. I. P. ( 59) 2,935,000 2,935,000
TOTAL 3,625,000 7,332,578 1,625,000 7,562,004
RESERVES FUND ( 17)
To General Fund ( 10) - 2,000,000 - -
RECREATION FUND ( 18)
From General Fund ( 10) 4,397,578 - 4,627,004 -
CONSTRUCTION SERVICES FUND ( 26)
TO C. I. P.( 59) - 300,000 - -
G. O. BOND FUND ( 48)
To General Fund ( 10) - 25,000 - 25,000
GAS TAX FUND ( 27)
To General Fund ( 10) - 1,600,000 - 1,600,000
TO C. I. P.( 59) - 1,870,771 - 1,238,130
TOTAL $ 3,470,771 $ 2,838,130
PARKING DISTRICT FUND ( 28)
To C. I. P.( 59) - 275,000 - 275,000
SEWER FUND ( 72)
TO C. I. P.( 59) - 1,816,029 - 4,910,900
H. O. M. E. FUND ( 22)
TO C. I. P.( 59) - 455,300 - 454,500
COMM. DEV. BLOCK GRANT FUND ( 23)
TO C. I. P.( 59) - 200,000 - 250,000
CAPITAL IMPROVEMENT PROJECT FUND ( 59)
From General Fund ( 10) 2,935,000 2,935,000
From Construction Services Fund ( 26) 300,000 0
From Gas Tax ( 27) 1,870,771 1,238,130
From Parking District ( 28) 275,000 275,000
From Sewer Service ( 72) 1,816,029 4,910,900
From H. O. M. E ( 22) 455,300 454,500
From CDBG ( 23) 200,000 250,000
From RDA Merged Area ( 57) 2,436,000 1,614,000
From RDA Merged Area- Housing ( 29) 1,680,000 585,000
TOTAL $ 1 1,968,100 $ 12,262,530
Two Year Business Plan 2008 - 2010
2- 18
SCHEDULE OF INTERFUND TRANSFERS
Adopted Projected
2008- 09 2009- 10
T R A N S F E R T R A N S F E R
IN OUT IN OUT
MERGED AREA RDA ( 57)
To C. I. P. ( 59) - 2,436,000 - 1,614,000
MERGED AREA HOUSING RDA ( 29)
To C. I. P. ( 59) - 1,680,000 - 585,000
TOTAL CITY AND RDA TRANSFERS $ 1 9,990,678 $ 19,990,678 $ 18,514,534 $ 18,514,534
RECONCILE TO BUDGET SUMMARY BY FUNDS
2008- 09 2009- 10
TOTAL CITY AND RDA TRANSFERS 1 9,990,678 18,514,534
Less C. I. P. Transfers ( 11,968,100) ( 12,262,530)
Total Operating Transfers 8,022,578 6,252,004
Total C. I. P. Transfers 11,968,100 12,262,530
Add C. I. P. Revenue & Fund Bal. 4,210,991 4,008,862
Total C. I. P. Budget $ 1 6,179,091 $ 16,271,392
City of San Mateo
2- 19
GENERAL FUND REVENUE
HIGHLIGHTS AND ASSUMPTIONS
2008- 2009 $ 83.57M
2009- 2010 $ 87.42M
OVERVIEW
CURRENT
• Total General Fund Revenue for current year 2007- 08, is estimated to be $ 80.33M. This amount
includes $ 0.84M of one- time items. Compare to last year, the revenue growth is 4.7% ( after adjusting
for anomalies). When compared to the adopted budget, we expect to result in a favorable variance of
$ 0.41M by June 30, 2008. This is primarily attributed to one- time ERAF, Business Tax and Transient
Occupancy tax. Property Transfer Tax and Sales Tax were adversely affected by the slow economy
and housing market decline.
• The estimated 2007- 08 net positive variance from the budget is $ 0.41M. The table shows the main
sources as well as the dollar amount of the increase ( decrease) compared to the original adopted
budget.
Over ( under) Budget 2007- 08
Source
Property Tax $ 0.22M
Sales Tax ( 0.22)
Property Transfer Tax ( 0.50)
Motor Vehicle In- Lieu 0.10
Interest Income - 0-
Hotel Tax 0.33
Business Tax 0.34
Miscellaneous ( 0.10)
One- Time Revenue
( ERAF)
0.24
Total
$ 0.41M
FUTURE
• Estimates for 2008- 09 assume a 3.9% ( after adjusting for anomalies) overall growth of $ 3.2M,
reflecting an economic downturn. The assumption for 2009- 10 is 4.6% over 2008- 09. Due to the
uncertainty of the State budget, a $ 700K revenue reduction is anticipated in the new two year
budgets.
Two Year Business Plan 2008 - 2010
2- 20
MAJOR SOURCES
1. Property Tax: For 2008- 09, $ 25.02M is projected, showing a 8% increase over 2007- 08. This is a
relatively stable source of income. For 2009- 10, $ 26.52M or 6% increase is projected.
2. Sales Tax: For 2007- 08, $ 17.0M is estimated, reflecting a 2.4% increase over prior year. The
projected 2008- 09 revenue of $ 17.5M shows a 3% growth over the estimated actual for 2007- 08. For
2009- 10, $ 18.0M or 3% increase is projected.
The allocation of the half- cent sales tax for public safety, which started in 1993- 94 under Proposition
172, generates an annual income of $ 200K. This revenue is a potential ongoing State takeaway.
3. Property Transfer Tax: In the current year 2007- 08, we expect to receive $ 6.5M or 37% decline
over prior year, and are projecting that this revenue in 2008- 09 will be at $ 7.0M due to the declining
housing market. Revenue is estimated at $ 7.4M in 2009- 10. This revenue source is potentially
volatile, depending on the real estate market activity level.
4. Vehicle License Fee: This revenue, which is estimated at $ 0.67M in 2007- 08, is projected to be
$ 0.70M in 2008- 09 and $ 0.74M in 2009- 10. This revenue was mostly substituted a few years by
property tax in lieu of VLF ( VLF Swap).
5. Interest Income: This source shows a decrease in current year 2007- 08 due to lower interest rates,
and is expected to continue to 2008- 09. We expect to earn $ 5.3M on the total portfolio in 2007- 08,
$ 4.2M projected for 2008- 09 and $ 4.7M projected for 2009- 2010. The earnings on the portfolio are
distributed to all funds. The portion allocated to the General Fund is expected to be 35%, which
would equal to $ 1.7M in 2007- 08, $ 1.5M for 2008- 09 and $ 1.7M for 2009- 10.
6. Hotel Tax: The tourism industry shows steady improvement in occupancy and room rates. The
current year, 2007- 08, is estimated at $ 3.3M, an improvement of 20% compared to prior year. Our
forecast for 2008- 09 is for $ 3.5M ( 5% increase over 2007- 08); and for 2009- 10, $ 3.6M ( 5% increase
over 2008- 09).
7. Business Tax: This source is estimated to bring in approximately $ 3.5M in 2007- 08. For 2008- 09,
$ 3.7M is projected, and for 2009- 10, $ 3.8M.
8. Horse Racing: Income of $ 450K is estimated for 2007- 08; for 2008- 09 and 2009- 10, $ 200K is
projected. This assumes horse racing will discontinue at Bay Meadows in August, 2008 and the City
will continue to receive its share of the satellite betting going forward.
9. Franchises: This source is estimated to generate approximately $ 2.4M in 2007- 08 and $ 2.5M in
2008- 09. For 2009- 10, $ 2.6M is projected.
10. Fines & Forfeitures: Revenue is expected to remain flat due to improved traffic safety. For 2007- 08,
$ 2.4M is estimated. For 2008- 09, $ 2.4M is projected and for 2009- 10, $ 2.4M.
11. Indirect Costs: The expected revenue in current year 2007- 08 is $ 1.9M. For 2008- 09, $ 2.0M is
projected and for 2009- 10, $ 2.1M.
12. Recreation Fees: These fees are expected to generate $ 2.7M in 2007- 08. For 2008- 09, the same level
of $ 2.7M is projected due to the slow economy and for 2009- 10, $ 2.75M is anticipated.
City of San Mateo
2- 21
City of San Mateo
REVENUE COMPARISON - GENERAL FUNDS
Last Year 2006- 2007 ( Actual)
vs.
Current Year 2007- 2008 ( Estimated Actual)
2006- 07 2007- 08
LAST YEAR EST.
ACTUAL ACTUAL VARIANCE VARIANCE
REVENUE $ million $ million $ million %
Property Tax 21.85 23.17 1.32 6.04%
Sales Tax 16.59 17.00 0.41 2.47%
Transfer Tax 10.42 6.50 ( 3.92) - 37.62%
Property Tax In Lieu of VLF 6.11 6.68 0.57 9.33%
Businesss License 3.59 3.50 ( 0.09) - 2.51%
Transient Tax 2.75 3.30 0.55 20.00%
Interest Income 2.41 1.70 ( 0.71) - 29.46%
Fines & Forfeits 2.38 2.40 0.02 0.84%
Franchises 2.31 2.45 0.14 6.06%
Indirect Charges 1.82 1.89 0.07 3.85%
Pari- Mutuel 0.48 0.45 ( 0.03) - 6.25%
Recreation Fees 2.64 2.66 0.02 0.76%
Library Fees 0.57 0.67 0.10 17.54%
Planning Fees 0.26 0.25 ( 0.01) - 3.85%
Other Revenue 8.14 6.22 ( 1.92) - 23.59%
Gas Tax 1.49 1.49 0.00 0.00%
SUB- TOTAL: 83.81 80.33 ( 3.48) - 4.15%
Less One- Time Adj. ( 7.87) ( 0.84) 7.03 - 89.33%
TOTAL ON- GOING REVENUE: 75.94 79.49 3.55 4.67%
Two Year Business Plan 2008 - 2010
2- 22
City of San Mateo
REVENUE COMPARISON - GENERAL FUNDS
Current Year 2007- 08 ( Estimated Actual)
vs.
Next Year 2008- 09 ( Adopted)
2007- 08 2008- 09
CURRENT YR NEXT YEAR
Est. Actual ( Adopted) VARIANCE VARIANCE
REVENUE $ million $ million $ million %
Property Tax 23.17 25.02 1.85 7.98%
Sales Tax 17.00 17.51 0.51 3.00%
Property Tax In Lieu of VLF 6.68 7.21 0.53 7.93%
Transfer Tax 6.50 7.02 0.52 8.00%
Business License 3.50 3.71 0.21 6.00%
Transient Tax 3.30 3.47 0.17 5.15%
Franchises 2.45 2.52 0.07 2.86%
Business License 2.40 2.40 0.00 0.00%
Indirect Charges 1.89 1.97 0.08 4.23%
Interest Income 1.70 1.50 ( 0.20) - 11.76%
Pari- Mutuel 0.45 0.20 ( 0.25) - 55.56%
Recreation Fees 2.66 2.67 0.01 0.38%
Library Fees 0.67 0.69 0.02 2.99%
Planning Fees 0.25 0.20 ( 0.05) - 20.00%
Other Revenue 6.22 6.58 0.36 5.79%
Gas Tax 1.49 1.60 0.11 7.38%
Less State Hit 0.00 ( 0.70) ( 0.70) 0.00%
SUB- TOTAL: 80.33 83.57 3.24 4.03%
Less One- Time Adj. 0.05 0.00 ( 0.05)
TOTAL ON- GOING REVENUE: 80.38 83.57 3.19 3.97%
Note: 2007- 08 one- time total adjusted for prior year ERAF adjustment for comparison purpose.
City of San Mateo
2- 23
Two Year Business Plan 2008 - 2010
2- 24
CITY COUNCIL
MISSION STATEMENT
To protect, maintain, and improve the quality of life for San Mateo residents and visitors by
adopting legislation and providing policy direction for the City's administration, and to promote the
best interests of the community locally and with other governmental agencies.
STRUCTURE AND SERVICES
The City Council is composed of five members elected at large by the voters. As called for in the
City Charter, general municipal elections are held every odd- numbered year, with two Council
Members elected the year preceding Leap Year and three elected the year after Leap Year.
The Office of the City Council is comprised of three programs:
• Legislative Operations
• Community Promotion
• Intergovernmental Relations
Council Members hold office for four- year terms commencing the first regular council meeting in
December following the November election. The Council Members select from among themselves a
Mayor and Deputy Mayor to serve for one- year terms. The Mayor presides at meetings of the City
Council, signs all documents on behalf of the City Council, and acts as the official representative of
the City in all transactions. The Deputy Mayor assumes these duties in the Mayor's absence.
Regular meetings of the City Council are held on the first and third Monday of each month in the
Council Chambers. Study sessions are held, as needed, to provide information to the City Council
on issues more complex or time- consuming than those typically scheduled for regular Council
meetings. All meetings, except closed sessions on litigation or personnel matters, are open to the
public.
The City Council appoints a City Manager as the administrative head of the City government and a
City Attorney who serves as a legal advisor to the Council and other City officials. The Council
enacts ordinances and resolutions, and approves the budget and City expenditures. In addition to its
legislative duties, the Council also appoints citizens to serve on Boards and Commissions which
operate in an advisory capacity to the Council.
The Mayor and Council Members attempt to be responsive to citizen concerns and to enact
legislation which reflects the needs, wishes, and priorities of all the residents of San Mateo. They
strive to promote the economic, cultural, and governmental well being of the community. They
represent the City at community ceremonies, meetings and other functions as well as participating in
regional, state and national organizations.
City of San Mateo
3- 1
Two Year Business Plan 2008 - 2010
City Council Meeting Statistics
Council Meetings 2002- 2007
21
21
21
21
21
21
18
14
31
23
28
31
0 5 10 15 20 25 30
2002
2003
2004
2005
2006
2007
Year
Number of Meetings
Regular Meetings Special Meetings
Number of Agenda Items 2007
RDA
Items
11% Regular
Meeting
Items
70%
Study
Session
Items
12%
Closed
Session
Items
7%
Assessment
The City Council generally holds 21 regular meetings
each year. This chart illustrates the number of Special
Meetings that were held in addition to Regular Meetings
over the past six years. 2006 and 2007 both saw a
relatively high number of special meetings that were held
in addition to regular meetings.
Assessment
This chart shows the average length of regular
meetings that were held each month in 2007. The
duration of a regular meeting can vary due to many
factors such as the number of agenda items, the
amount of public comment, and even the time of year.
The average length of a regular meeting during 2007
was 68 minutes, which represents an increase from
the meeting average of 58 minutes for 2006, but a
decrease from 104 minutes for 2005.
Assessment
In 2007 a total of 273 Agenda items were presented to
the City Council. Items generally come before the
Council for consideration in 4 categories: Closed
Session Items, Redevelopment Agency ( RDA) Items,
Study Session Items and Regular Meeting Items. This
chart illustrates the breakdown of those different
categories in making up the total of 273 items.
Length of City Council Regular Meetings
2007
0
50
100
150
200
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
Average Time in
Minutes
Two Year Business Plan 2008 - 2010
3- 2
CITY COUNCIL
DEPARTMENT SUMMARY Actual Budget Estimate Adopted Projected FTE's
2006- 07 2007- 08 2007- 08 2008- 09 2009- 10
( As amended)
EXPENDITURES
By Program
LEGISLATIVE OPERATIONS 197,660 235,602 189,136 250,792 258,071 2.50
COMMUNITY PROMOTION 104,043 103,618 100,672 111,388 115,207 1.25
INTERGOVRN'T RELATIONS 76,208 87,699 85,931 94,992 98,316 1.25
Total $ 377,912 $ 426,919 $ 375,739 $ 457,171 $ 471,595 5.00
By Category
Salaries and Benefits 70,325 74,449 73,217 95,327 100,094
Operating Expenses 267,359 312,470 262,124 321,844 331,501
Capital Outlay 40,228 40,000 40,398 40,000 40,000
Total $ 377,912 $ 426,919 $ 375,739 $ 457,171 $ 471,595
REVENUE
General Fund 375,739 457,171 471,595
Total $ 375,739 $ 457,171 $ 471,595
Merit 5.00
Part Time 0.00
Over Time 0.00
Total 5.00
City of San Mateo
3- 3
PROGRAM: LEGISLATIVE OPERATIONS
Program Manager: Mayor and City Council
The purpose of this program is to formulate City policies which reflect the needs, wishes and
priorities of the citizens of San Mateo.
Ongoing Responsibilities
Prepare for and take action on issues in a timely manner at semi- monthly City Council meetings and
hold special meetings as needed to study complex issues.
Adopt Two- year Business Plan and Capital Improvement Program.
Provide for the receipt of an annual audit of the City's financial records by an independent auditing
firm by November 15 and review its contents by January 1.
Hold interviews and appoint qualified citizens to serve as members of the City's Boards and
Commissions prior to expiration of terms in June or upon a vacancy due to a resignation.
Appoint individual Council Members to serve as liaison representatives to various boards, local and
regional agencies, and other organizations.
Bring any measures or Charter amendments deemed to be in the best interests of the community to
the voters for approval.
Support partnerships with other agencies to reduce duplication of efforts and costs
Objectives 2008- 2010
To continue to support the organization’s efforts to maintain financial and service stability.
The Strategic Directions express the Council’s Vision in terms of key targets that must be
accomplished to achieve the Vision. These Strategic Directions include:
• Safe, clean and attractive neighborhoods
• Successful businesses and a solid tax base
• A community where residents can flourish and youth are nurtured
• Orderly planning, development and function of the community
• An open, participative and effective City Government
• Becoming increasingly sustainable and working towards the reduction of the carbon
footprint of the community
Two Year Business Plan 2008 - 2010
3- 4
LEGISLATIVE OPERATIONS
PROGRAM SUMMARY Actual Budget Estimate Adopted Projected FTE's
2006- 07 2007- 08 2007- 08 2008- 09 2009- 10
( As amended)
EXPENDITURES
By Sub Program
LEGISLATIVE OPERATIONS 197,660 235,602 189,136 250,792 258,071 2.50
Total $ 197,660 $ 235,602 $ 189,136 $ 250,792 $ 258,071 2.50
By Category
Salaries and Benefits 35,709 37,225 36,784 47,664 50,047
Operating Expenses 121,723 158,377 111,954 163,128 168,024
Capital Outlay 40,228 40,000 40,398 40,000 40,000
Total $ 197,660 $ 235,602 $ 189,136 $ 250,792 $ 258,071
REVENUE
General Fund 189,136 250,792 258,071
Total $ 189,136 $ 250,792 $ 258,071
Merit 2.50
Part Time 0.00
Over Time 0.00
Total 2.50
City of San Mateo
3- 5
PROGRAM: COMMUNITY PROMOTION
Program Manager: Mayor and City Council
The purpose of this program is the promotion of the economic, cultural, and governmental well
being of the community and to assure that residents and visitors are kept informed on municipal
activities and events.
Ongoing Responsibilities
To provide representative attendance at community ceremonies, meetings, and other functions.
To host annual Boards and Commissions Dinner and reception following annual City Council
Reorganization.
To recognize City employees through an annual awards program.
To periodically publish current City events through reports & newsletters distributed to the citizens.
To contribute financially to the promotional and informational activities of the San Mateo Chamber
of Commerce, Sustainable San Mateo, and San Mateo’s Sister City Association.
Objectives 2008- 2010
To improve communication with and participation by all persons who live and/ or work in
San Mateo and publish an annual report each year.
To develop a community outreach campaign to aid in the education and reduction of the
community’s carbon footprint.
To encourage and publicly support " Leadership San Mateo/ Foster City/ Burlingame/ Hillsborough,"
under the sponsorship of the Chamber of Commerce, to help develop community leaders.
To recognize San Mateo businesses for significant contributions to improving the quality of life
within the San Mateo Community by honoring them at the Annual City- Chamber Business Awards
recognition event.
To provide those who live or work in San Mateo with an opportunity to learn how the City is
managed and operated through the City Services Academy.
To actively participate in making " Keep San Mateo Beautiful" a successful community effort.
To welcome visitors and promote good relations through San Mateo’s Sister City Relationship with
Toyonaka, Japan.
Two Year Business Plan 2008 - 2010
3- 6
COMMUNITY PROMOTION
PROGRAM SUMMARY Actual Budget Estimate Adopted Projected FTE's
2006- 07 2007- 08 2007- 08 2008- 09 2009- 10
( As amended)
EXPENDITURES
By Sub Program
COMMUNITY PROMOTION 48,107 44,312 43,183 50,303 52,289 1.25
BUSINESS & TOURISM 55,937 59,306 57,489 61,085 62,918 0.00
Total $ 104,043 $ 103,618 $ 100,672 $ 111,388 $ 115,207 1.25
By Category
Salaries and Benefits 17,356 18,612 18,164 23,832 25,023
Operating Expenses 86,687 85,006 82,508 87,556 90,184
Total $ 104,043 $ 103,618 $ 100,672 $ 111,388 $ 115,207
REVENUE
General Fund 100,672 111,388 115,207
Total $ 100,672 $ 111,388 $ 115,207
Merit 1.25
Part Time 0.00
Over Time 0.00
Total 1.25
City of San Mateo
3- 7
PROGRAM: INTERGOVERNMENTAL RELATIONS
Program Manager: Mayor and City Council
The purpose of this program is to establish and maintain cooperative, effective relationships and
communications with local, state and federal agencies to influence policy decisions, legislation, and
services which affect the City of San Mateo.
Ongoing Responsibilities
Participation and membership in the League of California Cities, including the Peninsula Division,
the San Mateo County Local Agency Formation Commission ( LAFCO), the San Mateo County
Council of Cities, the Airport Community Roundtable, the San Mateo County Economic
Development Association ( SAMCEDA), Sustainable San Mateo County and various other
organizations.
To regularly communicate with San Mateo's elected County, State and Federal representatives to
influence legislation which affects the City of San Mateo and its citizens.
To maintain involvement and representation in San Mateo County Emergency Services,
City/ County Association of Governments and the Peninsula Traffic Congestion Relief Alliance.
Objectives 2008- 2010
To work with other agencies on a regional level to promote sustainability efforts.
To continue to be actively involved and take positions of leadership in regional and state
organizations.
To continue to schedule regular briefings with elected representatives to maintain open lines of
communication for discussion of issues of importance to the City of San Mateo.
To continue to support the San Mateo County Jobs for Youth Program.
Two Year Business Plan 2008 - 2010
3- 8
INTERGOVERNMENT RELATIONS
PROGRAM SUMMARY Actual Budget Estimate Adopted Projected FTE's
2006- 07 2007- 08 2007- 08 2008- 09 2009- 10
( As amended)
EXPENDITURES
By Sub Program
INTERGOVRN'T RELATIONS 76,208 87,699 85,931 94,992 98,316 1.25
Total $ 76,208 $ 87,699 $ 85,931 $ 94,992 $ 98,316 1.25
By Category
Salaries and Benefits 17,260 18,612 18,269 23,832 25,023
Operating Expenses 58,949 69,087 67,662 71,160 73,293
Total $ 76,208 $ 87,699 $ 85,931 $ 94,992 $ 98,316
REVENUE
General Fund 85,931 94,992 98,316
Total $ 85,931 $ 94,992 $ 98,316
Merit 1.25
Part Time 0.00
Over Time 0.00
Total 1.25
City of San Mateo
3- 9
Two Year Business Plan 2008 - 2010
3- 10
CITY MANAGER
MISSION STATEMENT
To provide leadership, support and coordination for the various City departments, provide policy
recommendations to the City Council represent City interests in local and regional issues and assure
the governmental processes succeed in maintaining and improving the quality of life in San Mateo.
STRUCTURE AND SERVICES
City Management:
The City Manager, as Chief Executive Officer of the City, is responsible for various functions
assigned by the City's charter. These include overseeing the implementation and administration of
Council policy, supervising the activities of all City departments, enforcing City ordinances,
preparing the operating and capital improvement budgets, completing the publication of periodic
reports to the public and such other duties and responsibilities as may be assigned by the City
Council.
The City Manager's office has the responsibility to ensure the needs and concerns of the community
and the City organization are properly addressed to assure San Mateo is a good place to live and do
business. To accomplish this, the manager is involved in community, county, regional and state
issues, as well as supporting and guiding the City organization.
The department oversees Information Technology and retains direct responsibility over a number of
projects and programs including managing the transformational efforts of the City organization,
performance measurements, long term capital financing, public information, internal
communications, website development, and strategic planning. The department receives information
or prepares documentation demonstrating the need for actions to be taken by other City departments.
Citizen suggestions, complaints received, research and analysis are utilized by the department to
offer information and recommendations to the City Council and guidance to operating departments
in the development and implementation of policies and services desired by the community.
City of San Mateo
4- 1
CITY MANAGER
Performance Measurements
Listed under each program heading are a few of the measurements used to determine if a
program is meeting its goals and to use as comparison to previous years performance and/ or
performance levels of other agencies.
During the next year the City Manager’s office will focus on developing measurements for our e-government
activities on our website.
GOAL ACTUAL GOAL GOAL GOAL
City Management
FY06/ 07 FY06/ 07 FY07/ 08 FY08/ 09 FY09/ 10
1. Percent of online complaints
receiving initial response by the
close of the next business day.
95%
*
95%*
95%
95%
2. Number of new email list enrollees
+ 10% + 9% + 10% 10% 10%
3. Number of visits to website
+ 10% 37% + 10% 20% 20%
4. Percent of customers rating service
as good or better.
90% 100% 90% 90% 90%
* Due to technical inconsistencies, on line system was intermittently removed from website and
tracking was suspended.
Two Year Business Plan 2008 - 2010
4- 2
Office of the City Manager Performance Measurement Results
Assessment
Since 2002, we have been able to capture data
regarding how many visits there were to the City
website. Over the past 5 years the total number of
visitors to our website thoughout the year has nearly
quadrupled from 497,698 in 2002 to 1.8 million in
2007. The average number of users per day has also
increased from 1,460 to 5,030.
Next Steps
The City conducts a biannual customer service survey
and receives monthly web usage log reports that
include what information is viewed most often. This
data provides valuable information for the continual
development of both content and structure of the
City's website. The City will continue to track data,
ask for feedback, and continue to use this information
in promoting the website.
Assessment
The City has a customer service goal of a 90% rating
of good or better. All City departments conduct
customer service surveys on their areas of service at a
minimum of at least once a year. In 2002, the City
Manager's Office implemented a survey specific to the
services provided by the department and has
consistently received a 100% rating of good or better.
Next Steps
Customer Service is a core value within the City. The City
Manager's Office, along with each department, will
continue to monitor customer satisfaction, follow up as
necessary regarding concerns raised, seek improvement,
and provide ongoing training to staff.
Assessment
The City website offers Email Subscribing on 34
different topics including agendas and minutes, job
opportunities, new development information, new
website content, library updates, City newsletters,
calendar of events, general plan information, and New
Main Library updates. This graph shows the number of
subscribers per top 10 subscribed to topics. As of
January, 2007 the number of individuals requesting
email information was 7,457, an increase of 331
subscribers from January, 2006.
Next Steps
The City's goal is to provide timely, easily accessible
information to the public. We will continue to seek
feedback on what other information is valuable to the
community and increase marketing of this service.
Number of Website Visits Per Month
0
50,000
100,000
150,000
200,000
250,000
January
February
March
April
May
June
July
August
September
October
November
December
2002 2003 2004 2005 2006 2007
Top 10 Website Email Subscriber Topics
0 1000 2000 3000 4000 5000
Calendar of Events
Employment Opportunities
Library Services – Author & Book
Events
Library Services – Children's
Programs & Events
Number of Customer Service Surveys
Receiving a Rating of Good or Better
84%
86%
88%
90%
92%
94%
96%
98%
100%
102%
FY01/ 02
FY02/ 03
FY03/ 04
FY04/ 05
FY05/ 06
FY06/ 06
FY07/ 08
Goal
Actual
City of San Mateo
4- 3
Two Year Business Plan 2008 - 2010
4- 4
CITY MANAGER
DEPARTMENT SUMMARY Actual Budget Estimate Adopted Projected FTE's
2006- 07 2007- 08 2007- 08 2008- 09 2009- 10
( As amended)
EXPENDITURES
By Program
CITY MANAGEMENT 1,022,783 1,147,953 1,036,810 1,267,514 1,326,078 5.25
Total $ 1,022,783 $ 1,147,953 $ 1,036,810 $ 1,267,514 $ 1,326,078 5.25
By Category
Salaries and Benefits 904,451 1,009,534 951,892 1,030,728 1,082,265
Operating Expenses 107,301 127,388 73,887 228,122 235,149
Capital Outlay 11,031 11,031 11,031 8,664 8,664
Total $ 1,022,783 $ 1,147,953 $ 1,036,810 $ 1,267,514 $ 1,326,078
REVENUE
General Fund 1,036,810 1,267,514 1,326,078
Total $ 1,036,810 $ 1,267,514 $ 1,326,078
Merit 5.00
Part Time 0.19
Over Time 0.06
Total 5.25
City of San Mateo
4- 5
PROGRAM: CITY MANAGEMENT
Program Manager: Arne Croce, City Manager
Susan Loftus, Deputy City Manager, 650- 522- 7003
Ongoing Responsibilities
Implement policies and programs adopted by the City Council. Submit timely and complete
recommendations to the City Council on all items raised for their consideration.
Prepare a recommended two- year Business Plan which reflects the goals of the organization and maintains a
sound fiscal position for the City.
Keep San Mateo citizens informed on local governmental activities. Prepare and distribute quarterly reports
and an annual report to the Council, community and organization.
Coordinate activities of City departments to ensure effective and efficient Citywide operations.
Provide leadership to the City organization. Maintain positive relations with all labor organizations
representing city employees.
Develop and implement programs appropriate to transforming the organization from a bureaucratic to a
contemporary model.
Represent the City to the community and external organizations. Maintain positive relations with a variety
of San Mateo based community organizations. Provide a professional leadership role in associations
comprised of other cities.
Participate in formulating policies based on State and Federal issues that impact San Mateo.
Objectives 2008- 2010
• Continue to enhance/ update the information available on the City’s website and intranet to
promote its use throughout the community and organization respectively.
• Continue efforts to enhance sustainability and climate change actions in the community and
organization focusing on opportunities to develop regional solutions to this initiative.
• Implement the next phase of the long- term Capital Improvement Strategy with the priority of
completing the police station project and making significant progress on fire station
improvements.
• Continue efforts to develop emergency preparedness readiness throughout the organization.
• Continue to align departmental goals and objectives to City Council goals and objectives.
• Continue to strengthen the use of performance measurements as a program management tool
• Enhance and promote ‘ e- services’ available on the City website.
• Produce the annual End of the Year Report.
• Review and update the policies and procedures manual.
• Implement activities to enhance transformational efforts ( e. g., internal communications and
training) and workforce planning and development.
Two Year Business Plan 2008 - 2010
4- 6
CITY MANAGEMENT
PROGRAM SUMMARY Actual Budget Estimate Adopted Projected FTE's
2006- 07 2007- 08 2007- 08 2008- 09 2009- 10
( As amended)
EXPENDITURES
By Sub Program
CITY MANAGEMENT 932,599 1,018,347 930,241 1,134,204 1,186,818 4.94
COMMUNITY & INTRGVMT 90,184 129,606 106,569 133,310 139,259 0.31
Total $ 1,022,783 $ 1,147,953 $ 1,036,810 $ 1,267,514 $ 1,326,078 5.25
By Category
Salaries and Benefits 904,451 1,009,534 951,892 1,030,728 1,082,265
Operating Expenses 107,301 127,388 73,887 228,122 235,149
Capital Outlay 11,031 11,031 11,031 8,664 8,664
Total $ 1,022,783 $ 1,147,953 $ 1,036,810 $ 1,267,514 $ 1,326,078
REVENUE
General Fund 1,036,810 1,267,514 1,326,078
Total $ 1,036,810 $ 1,267,514 $ 1,326,078
Merit 5.00
Part Time 0.19
Over Time 0.06
Total 5.25
City of San Mateo
4- 7
Two Year Business Plan 2008 - 2010
4- 8
CITY ATTORNEY
MISSION STATEMENT
The mission of the San Mateo City Attorney’s Office is to provide excellent, clear legal advice and
zealous, ethical legal representation for the City Council, City officers, and City staff to support
them in their efforts to make San Mateo a community of the highest quality. The Office staff will be
accessible to those they serve and respond to requests for service in a timely manner.
STRUCTURE AND SERVICES
Legal Counsel
The City Attorney's Office is responsible for providing legal advice to the City Council, city staff,
and city boards or commissions on matters that affect the conduct of city business, and for preparing
contracts, ordinances, resolutions and related legal documents to implement adopted city policy.
The City Attorney’s Office also provides either directly or through outside counsel, for the
representation of the city in administrative proceedings and in court proceedings initiated by the
City.
Litigation Defense
The City Attorney’s Office is responsible for providing, either directly or through outside counsel,
for the defense of the City, its officers and employees against lawsuits and claims. The Office
procures property and general liability insurance, contracts for claims adjusting services and
oversees the handling of Tort Claims. The City receives approximately 100 claims yearly, including
claims for personal injury and property damage.
City of San Mateo
5- 1
Two Year Business Plan 2008 - 2010
5- 2
CITY ATTORNEY
DEPARTMENT SUMMARY Actual Budget Estimate Adopted Projected FTE's
2006- 07 2007- 08 2007- 08 2008- 09 2009- 10
( As amended)
EXPENDITURES
By Program
LEGAL COUNSEL 766,492 800,002 986,115 859,890 901,417 3.96
CLAIMS AND TORT DEFENSE 1,079,402 1,081,612 822,910 1,112,978 1,147,956 0.56
Total $ 1,845,894 $ 1,881,614 $ 1,809,024 $ 1,972,867 $ 2,049,373 4.52
By Category
Salaries and Benefits 693,344 782,006 692,270 840,606 882,636
Operating Expenses 1,150,181 1,097,240 1,114,386 1,129,586 1,164,062
Capital Outlay 2,368 2,368 2,368 2,676 2,676
Total $ 1,845,894 $ 1,881,614 $ 1,809,024 $ 1,972,867 $ 2,049,373
REVENUE
CLAIMS AND TORT DEFENSE 800,000 850,000 850,000
General Fund 1,009,024 1,122,867 1,199,373
Total $ 1,809,024 $ 1,972,867 $ 2,049,373
Merit 4.50
Part Time 0.00
Over Time 0.02
Total 4.52
City of San Mateo
5- 3
PROGRAM: