BOARD OF APPEALS Budget Presentation FY20 & FY21 OVERVIEW - - PowerPoint PPT Presentation

BOARD OF APPEALS

Budget Presentation FY20 & FY21

OVERVIEW

City departments must submit two-year budget proposals by February 21.

 Required by San Francisco Administrative Code Chapter 3.3(a)

Before the submittal deadline, the Board must adopt budgets for Fiscal Years (FYs) 2019-20 & 2020-21. This presentation provides:

 An overview of the Board’s budget structure  An update on the current year’s budget (FY19)  Recommendations for FY20 & FY21 budgets  Budget detail for FY20 & FY21

2

Surcharges = 96% of budget

 Collected on new and renewed permits  Rates based on percentage of cases originating from each underlying department and anticipated permit application volume  Rates analyzed annually and adjusted if needed

Filing Fees = 4% of budget

 Collected by Board when appeals are filed  Amount collected fluctuates based on appeal volume and types filed each year

3

Surcharges 95%

OVERVIEW – REVENUE BUDGET

Surcharges 96% Filing Fees 4% Surcharges Filing Fees

OVERVIEW – EXPENDITURE BUDGET

Over two-thirds (69%) of the Board’s expenditure budget covers salary & fringe benefit expenses. Services provided by other departments and rent comprise the next largest portion of the budget (23%). The remainder of the budget consists of:

 Specialized Services (7%)

 Neighborhood notification, interpreters, delivery services and office machine rental

 Materials & Supplies (1%)

 Paper & other office supplies

4

69% 23% 7% 1%

Current FY Budget

Salaries & Fringe Benefits Services of Other Departments* Specialized Services Materials & Supplies

CURRENT FY UPDATE

YEAR-END PROJECTION – APPEALS

Projected appeal volume for FY19 (148 appeals) is 16% below the 10 year average of 176 appeals per year.

5

50 100 150 200 250 09 10 11 12 13 14 15 16 17 18 19 (proj)

Appeal Volume

Number of Appeals Average

CURRENT FY UPDATE

YEAR-END PROJECTION – REVENUE

Based on six month actuals, filing fee revenue and surcharge revenue are lower than projected.

 Filing fee revenue deficit ~ 21%  Surcharge revenue deficit ~ 22%

 Reduced collection anticipated: surcharge rates were significantly lowered for FY18 and continued in FY19 to prevent over collection (see slide 17)  Any year-end shortage can be covered by Board’s reserve fund

6

REVENUE

Current FY Budget Six Month Actuals Year End Projection Projected Variance

Filing Fees

46,037 18,253 36,506 (9,531)

Surcharges

1,026,263 399,333 798,666 (227,597)

Total

1,072,300 417,586 835,172 (237,128)

CURRENT FY UPDATE

YEAR-END PROJECTION – EXPENDITURES

Year-end expenditure savings of $59,512 are projected, based on mid-year spending.

7

*The BOA was not billed for all interdepartmental services in the first half of the fiscal year. The projection above is based on the assumption

that the Board will spend the amount budgeted with the exception of anticipated savings of $30,000 on the amount budgeted for the City Attorney’s services ($130,000 budgeted).

EXPENDITURES

Current FY Budget Six Month Actuals Year End Projection Projected Variance Salaries & Fringe Benefits 738,076 366,328 749,074 10,998 Services of Other Departments 250,634 77,654 *220,634 (30,000) Specialized Services 74,192 19,032 38,064 (36,128) Materials & Supplies 9,398 2,508 5,016 (4,382) Total 1,072,300 465,522 1,012,788 (59,512)

CURRENT FY UPDATE

YEAR-END PROJECTION – VARIANCE

VARIANCE

Current FY Budget Year End Projection Projected Variance Revenue

1,072,300 851,172 (237,128)

Expenditures

1,072,300 1,012,788 (59,512)

Variance

[Revenue Deficit plus Expenditure savings]

(177,616)

8

Based on six month revenue and expenditure information, the Board is expected to end the current fiscal year with a deficit

• f approximately $177,616.

FY20 & FY21 BUDGETS

PROPOSED REVENUE

Surcharge rates are designed to generate the revenue needed to cover

• perating expenses in both FYs.

Rates may be adjusted if deemed insufficient to cover expenses.

 Controller may adjust by CPI  Legislation is required if an increase beyond CPI is needed  Legislation may also be warranted to change the permit types upon which surcharges are levied  Controller performs rate analysis after other departments submit permit data in April  Board’s reserve fund is available to offset increased expenditures

 Fund currently at $955,773

 $208,000 for the new appeal management system (FY19)  $160,000 for the move to 49 SVN (FY20)  $130,000 for Rent after moving to the new building (FY21)

Surcharge rates will be analyzed for FY20 during this year’s budget process.

 The Board Office will be moving to 49 SVN in Spring 2020. Given the significant increase in rent, surcharge rates will likely be raised.

No change is projected in filing fee revenue.

9

FY20 & FY21 BUDGETS

PROPOSED EXPENDITURES

Increased expenditures in both budget years

 FY20 = 19.4% ($207,896)  FY21 = Although spending is down 4.6% from FY20, compared to FY19, spending is up 14%

 Increases cover:

 Mandatory increases in salaries & fringe benefits  Move costs and increased rent  Computer licensing costs

*SEE APPENDIX A.2 FOR EXPENDITURE DETAIL

10

EXPENDITURES

CURRENT FY19 FY20 Variance From FY19 FY 21 Variance from FY20 Salary & Fringe

738,076 770,487 32,411 798,565 28,078

Non-Personnel Svcs

74,192 80,792 6,600 80,792

Materials & Supplies

9,398 9,398 9,398

Work Orders & Infrastructure (includes rent and move costs)

250,634 419,519 168,885 332,667 (86,852)

TOTAL 1,072,300 1,280,196 207,896 1,221,422 (58,774)

FY20 & FY21 BUDGETS

RECOMMENDATIONS

Work with Controller’s Office and Mayor’s Office to assess:

 Surcharge rate changes that are warranted for FY20 taking into consideration the increased cost of rent at 49 SVN.  Legislation is needed to adjust the permit types upon which surcharges are levied

Use allocation from Board’s reserve fund to:

 Offset any revenue shortfall in current year  Cover the cost of a needed database conversion  Cover move costs  Cover increased rent

Continue to closely manage operating expenses

11

APPENDIX

12

Note: some of the figures in the attached budget detail may change as fringe benefit rates and other variables are finalized. The FY21 budget will be reconsidered during next year’s budget process.

APPENDIX A.1

BUDGET DETAIL - REVENUE

13

REVENUE

Current FY Budget FY20 Proposed Variance From FY19 FY21 Proposed Variance From FY20

FILING FEES 46,037 46,037 46,037 SURCHARGES 1,026,263 1,234,159 207,896 1,175,385 (58,774)

TOTAL REVENUE 1,072,300 1,280,196 207,896 1,221,422 (58,774)

APPENDIX A.2

BUDGET DETAIL – EXPENDITURES: PERSONNEL

PERSONNEL

FY19 FY20 Proposed Variance from FY19 FY21 Proposed Variance from FY20 Permanent Salaries

469,224 485,809 16,585 498,498 12,689

Premium Pay

2,704 2,704 2,704

Overtime

8,323 8,323 8,323

Retirement

86,278 98,939 12,661 104,403 5,464

Social Security

34,694 36,008 1,314 37,093 1,085

Health Service

122,624 125,418 2,794 133,902 8,484

Dental Coverage

6,489 6,189 (300) 6,189

Unemployment Insurance

1,295 1,341 46 1,375 34

Other Fringe Benefits

6,445 5,756 (689) 6,078 322

TOTAL

738,076 770,487 32,411 798,565 28,078

14

APPENDIX A.2

BUDGET DETAIL – EXPENDITURES: SERVICES OF OTHER DEPARTMENTS, INFRASTRUCTURE, RENT & MOVE COSTS

SERVICES

FY19 FY20 Proposed Variance from FY19 FY21 Proposed Variance from FY20

• Dept. of Technology

1,587 1,587 1,587 IT Infrastructure Cost 10,557 10,965 408 10,965 City Attorney 130,000 130,000 130,000 SFGOV TV 58,805 58,805 58,805 Enterprise Tech Agreement 755 777 22 777 Telephone 567 482 (85) 482 Reproduction 51 51 51 Move Cost 160,000 160,000 (160,000) Rent Paid To Real Estate 48,312 56,852 8,540 130,000 73,148

TOTAL 250,634 419,519 168,885 332,667 (86,852)

15

APPENDIX A.2

BUDGET DETAIL – EXPENDITURES (NON-PERSONNEL): SPECIALIZED SERVICES AND MATERIALS AND SUPPLIES

NON-PERSONNEL SPECIALIZED SERVICES FY19 FY20 Proposed Variance from FY19 Proposed FY21 Variance from FY20 Training 2,000 2,000 2,000 Employee Expenses 500 500 500 Professional& Specialized Services 57,992 64,592 6,600 64,592 Rents & Leases- Equipment 5,700 5,700 5,700 Other Current Expenses 8,000 8,000 8,000

TOTAL 74,192 80,792 6,600 80,792

16

MATERIALS & SUPPLIES FY19 Proposed FY20 Variance from FY19 Proposed FY21 Variance from FY20

Other Material & Supplies

9,398 9,398 9,398

TOTAL 9,398 9,398 9,398

APPENDIX B.1 SURCHARGES

Surcharge Rate FY17 Permits Issued FY17 Total Collected FY17 Surcharge Rate FY18 Permits Issued FY18 Total Collected FY18 Variance FY18 to FY17 Surcharge Rate FY19 Planning

$25.00 1,539 $38,475 $18.50 1,334 $24,679 ($13,796) $18.50

DBI

$25.00 35,387 $884,675 $18.50 39,185 $724,922 ($159,753) $18.50

DPH

$52.00 839 $43,628 $43.00 804 $34572 ($9,056) $43.00

SFMTA

$7.00 4,987 $34,909 $2.00 4,782 $9,564 ($25,345) $2.00

SFPD

$26.50 1,160 $30,740 $6.00 1,150 $6,900 ($23,840) $6.00

Public Works

$6.50 25,426 $165,269 $6.50 26,186 $170,209 $4,940 $6.50

Entertainment Commission

$4.00 1,047 $4,188 $4.00 762 $3,048 ($1,140) $4.00

Total 70,385 $1,201,884 74,488 $973,894 ($227,990)

17

APPENDIX B.2

FILING FEES

18

DETERMINATION FEE

ZONING ADMINISTRATOR DETERMINATION

$600

PLANNING COMMISSION ACTION

$600

• DEPT. OF BUILDING INSPECTION ALTERATION, DEMOLITION OR OTHER PERMIT

$175

• DEPT. OF BUILDING INSPECTION RESIDENTIAL HOTEL OR APARTMENT CONVERSION PERMIT

$525

• DEPT. OF BUILDING INSPECTION IMPOSITION OF PENALTY

$300

POLICE DEPT. & ENTERTAINMENT COMMISSION PERMIT ISSUED TO BUSINESS OWNER OR OPERATOR

$375

POLICE DEPT. & ENTERTAINMENT COMMISSION PERMIT ISSUED TO EMPLOYEE OR CONTRACT WORKER

$150

POLICE DEPT. & ENTERTAINMENT COMMISSION PERMIT REVOCATION OR SUSPENSION

$375

SAN FRANCISCO PUBLIC WORKS TREE REMOVAL PERMIT ISSUED TO CITY

$100

OTHER ORDER OR DECISION: TAXI, TOBACCO, MASSAGE, TREE REMOVAL, FOOD TRUCK, ETC.

$300

REHEARING REQUEST & JURISDICTION REQUEST

$150