BOARD OF APPEALS Budget Presentation FY17 & FY18 OVERVIEW - - PowerPoint PPT Presentation

BOARD OF APPEALS

Budget Presentation FY17 & FY18

OVERVIEW

City departments must submit two-year budget proposals by February 22

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

Before the submittal deadline, the Board must adopt budgets for Fiscal Years (FYs) 2016-17 & 2017-18 This presentation provides:

 An overview of the Board’s budget structure  An update on the current year’s budget (FY16)  Recommendations for FY17 & FY18 budgets  Budget detail for FY17 & FY18

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Surcharges = 95% 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  Controller may increase rates by CPI  Adjustment beyond CPI requires legislation

Filing Fees = 5% of budget

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

• verall volume

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Filing Fees 5% Surcharges 95%

OVERVIEW – REVENUE BUDGET

OVERVIEW – EXPENDITURE BUDGET

Over two-thirds (68%) of the Board’s expenditure budget covers salary & fringe benefit expenses. Services provided by other departments comprise the next largest portion of the budget (20%). The remainder of the budget consists of:

 Specialized Services (7%)

 Neighborhood notification, interpreter & delivery services

 Infrastructure (4%)

 Office & equipment rental, computer & telephone maintenance

 Materials & Supplies (1%)

 Paper & other office supplies

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Salary & Fringe 68% Services of Other Departments 20% Specialized Services 7% Infrastructure 4% Materials & Supplies 1%

Expenditures by Category

CURRENT FY UPDATE

YEAR-END PROJECTION – APPEALS

Projected appeal volume for FY16 is coming in just under the 10 year average of 180 appeals per year.

5 50 100 150 200 250 300 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Appeal Volume

Actual Average

CURRENT FY UPDATE

YEAR-END PROJECTION – REVENUE

Based on six month actuals, the Board is expected to end the year with a surplus in both revenue streams.

 Filing fee revenue surplus ~ 47%

 Mainly from fees paid for 35 unanticipated appeals of sign permit denials

 Surcharge revenue surplus ~ 11.5%

 Resulting from the actual number of permit applications coming in higher than projected

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Revenue

Current FY Budget Six Month Actuals Year End Projection Projected Variance Filing Fees 46,037 44,350 67,700 21,663 Surcharges 882,567 492,115 984,230 101,663 Total 928,604 536,465 1,051,930 123,326

CURRENT FY UPDATE

YEAR-END PROJECTION – EXPENDITURES

Based on midyear spending, year-end expenditure savings of $67,469 are projected:  Reduced personnel expenses due to a staff vacancies  SFGovTV expenses expected to come in below projections  Savings also expected in non-personnel and infrastructure costs  Materials & Supplies likely to be fully expended due to postage needed for neighborhood notification mailings

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Expenditures

Current FY Budget Six Month Actuals Year End Projection Projected Variance Salaries & Fringe Benefits 631,115 293,746 612,956 (18,159) Services of Other Departments 186,293 *37,433 168,098 (18,195) Specialized Services 65,992 17,914 39,410 (26,582) Infrastructure 35,806 **26,494 31,273 (4,533) Materials & Supplies 9,398 6,993 9,398 Total 928,604 382,580 861,135 (67,469)

*Does not include second quarter City Attorney billing. **The Board’s rent is fully paid in the first half of the year.

CURRENT FY UPDATE

YEAR-END PROJECTION – VARIANCE

Variance

Current FY Budget Year End Projection Projected Variance Total Revenue 928,604 1,051,930 123,326 Total Expenditures 928,604 861,135 (67,469) Total [Surplus revenue and expenditure savings] 190,795

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Based on year-to-date revenue and expenditure information, the Board is expected to end the current fiscal year with a surplus of approximately $190,795.

FY17 & FY18 BUDGETS

REVENUE

Surcharge rates are designed to generate sufficient revenue to cover

• perating expenses in both FYs.

If existing surcharge rates are deemed insufficient to cover expenses, they can be adjusted.

 Controller can adjust by CPI (FY17 = 3.18%; FY18 = 2.50%)  Legislation required if an increase beyond CPI is needed

Small increases are proposed in projected surcharge revenue in order to

• ffset increases in expenditures in FY17 & FY18 without increasing

surcharge rates.

 Warranted based on prior year surpluses and current year projections

Given the small portion of the budget that is comprised of filing fees, no change is projected in this revenue stream.

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FY17 & FY18 BUDGETS

EXPENDITURES

Minor increases in FY17 & FY18

 FY17 = 3.2% ($29,561)  FY18 = 2.4% ($23,434)

Increases address:

 Mandatory increases in salary & fringe benefits  Slight increase in IT infrastructure costs  Board’s share of Citywide financial systems upgrade

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Expenditure Variances*

Current Budget (FY16) FY17 Proposed Variance FY16 v. FY17 FY18 Proposed

Variance FY17 v. FY18

Salaries & Fringe Benefits 631,115 659,121 28,006 682,555 23,434 Services of Other Departments 186,293 187,541 1,248 187,541 Specialized Services 65,992 65,992 65,992 Infrastructure 35,806 36,113 307 36,113 Materials & Supplies 9,398 9,398 9,398 Total 928,604 958,165 29,561 981,599 23,434

*SEE APPENDIX A.2 FOR EXPENDITURE DETAIL.

FY17 & FY18 BUDGETS

RECOMMENDATIONS

Increase surcharge revenue projections in both years to cover mandatory increases in expenditures. Work with Controller and Mayor’s Office to determine whether projected Citywide permit application volume warrants a surcharge rate adjustment requiring legislative action. Continue to closely manage operating expenses.

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APPENDIX

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Note: as the budget process progresses some of the figures in the attached budget detail may change as fringe benefit rates are

• finalized. The FY18 budget will be reconsidered during next year’s

budget process.

APPENDIX A.1

BUDGET DETAIL - REVENUE

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REVENUE

Current FY Budget Projected Year-End Actuals FY17 Proposed Change from FY16 FY18 Proposed Change from FY17 FILING FEES 46,037 67,700 46,037 46,037 SURCHARGES 882,567 984,230 912,128 29,561 935,562 23,434 TOTAL REVENUE 928,604 1,051,930 958,165 29,561 981,599 23,434

APPENDIX A.2

BUDGET DETAIL – EXPENDITURES: PERSONNEL

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SALARIES & FRINGE BENEFITS

Current FY Budget FY17 Proposed Budget Change from FY16 Budget FY18 Proposed Budget Change from FY17 Budget PERMANENT SALARIES 424,721 440,306 15,585 449,565 9,259 PREMIUM PAY 2,704 2,704 2,704 OVERTIME 8,048 8,323 275 8,323 RETIREMENT 76,659 81,196 4,537 88,042 6,846 SOCIAL SECURITY 31,319 32,177 858 32,679 502 HEALTH SERVICE 90,113 96,510 6,397 102,691 6,181 DENTAL COVERAGE 6,828 7,169 341 7,528 359 UNEMPLOYMENT INSURANCE 1,175 1,218 43 1,243 25 OTHER FRINGE BENEFITS (12,952) (12,982) (30) (12,720) 262 TRAINING 2,000 2,000 2,000 EMPLOYEE EXPENSES 500 500 500 SUBTOTAL 631,115 659,121 28,006 682,555 23,434

APPENDIX A.2

BUDGET DETAIL – EXPENDITURES: WORK ORDERS AND SPECIALIZED SERVICES

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SERVICES OF OTHER DEPARTMENTS

Current FY Budget FY17 Proposed Budget Change from FY16 Budget FY18 Proposed Budget Change from FY17 Budget CITY ATTORNEY 130,000 130,000 130,000

• DEPT. OF TECHNOLOGY

2,000 2,000 2,000 SFGOVTV 52,661 52,661 52,661 REPRODUCTION 51 51 51 CONTROLLER FINANCIAL SYS. REPLACEMENT 1,581 2,829 1,248 2,829 SUBTOTAL 186,293 187,541 1,248 187,541

SPECIALIZED SERVICES

Current FY Budget FY17 Proposed Budget Change from FY16 Budget FY18 Proposed Budget Change from FY17 Budget PROFESSIONAL & SPECIALIZED SERVICES 65,992 65,992 65,992 SUBTOTAL 65,992 65,992 65,992

APPENDIX A.2

BUDGET DETAIL – EXPENDITURES: INFRASTRUCTURE AND MATERIALS & SUPPLIES

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INFRASTRUCTURE

Current FY Budget FY17 Proposed Budget Change from FY16 Budget FY18 Proposed Budget Change from FY17 Budget PHOTOCOPIER/SCANNER RENTAL 5,700 5,700 5,700 COMPUTER SUPPORT 6,935 7,239 304 7,239 TELEPHONE SUPPORT 659 662 3 662 RENT 22,512 22,512 22,512 SUBTOTAL 35,806 36,113 307 36,113

MATERIALS & SUPPLIES

Current FY Budget FY17 Proposed Budget Change from FY16 Budget FY18 Proposed Budget Change from FY17 Budget MATERIALS & SUPPLIES 9,398 9,398 9,398 SUBTOTAL 9,398 9,398 9,398

APPENDIX A.2

BUDGET DETAIL – EXPENDITURES: TOTALS

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EXPENDITURES

Current FY Budget FY17 Proposed Budget Change from FY16 Budget FY18 Proposed Budget Change from FY17 Budget SALARIES & FRINGE BENEFITS 631,115 659,121 28,006 682,555 23,434 SERVICES OF OTHER DEPARTMENTS 186,293 187,541 1,248 187,541 SPECIALIZED SERVICES 65,992 65,992 65,992 INFRASTRUCTURE 35,806 36,113 307 36,113 MATERIALS & SUPPLIES 9,398 9,398 9,398 TOTAL EXPENDITURES 928,604 958,165 29,561 981,599 23,434

APPENDIX B.1

SURCHARGE RATES

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PERMIT ISSUING DEPARTMENT SURCHARGE

DEPARTMENT OF BUILDING INSPECTION

$25.00

PLANNING DEPARTMENT

$25.00

MUNICIPAL TRANSPORTATION AGENCY (TAXI)

$7.00

POLICE DEPARTMENT

$26.50

PUBLIC WORKS

$6.00

DEPARTMENT OF PUBLIC HEALTH

$52.00

ENTERTAINMENT COMMISSION

$4.00

APPENDIX B.2

FILING FEES

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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