everyone's ready we'll call this meeting of the finance committee february twenty six to order and our first presentation is the mid year financial review so good afternoon chair dominguez committee members i am thomashefsky and i am the treasury manager for the finance department and with me here today is mark sewell the accounting manager and today we will be presenting the mid year review for fiscal year nineteen as part of that presentation i'll start out going through the general fund revenues focus on some of the larger variances at mid year and then i will hand it over to mister soll who will go through the general fund expenditures the enterprise funds some of the highlights of the revenues and expenditures with with those as well and then he'll hit some of the highlights on the budget adjustments so with that i will start with the general fund revenues so this first table this is a summary of the total revenues for the general fund we broke it into three categories we have taxes other revenues and fees and service charges the year to date budget this this is a three year benchmark which takes into account any seasonal trends that's about seventy three million at mid year compared to actual a little over seventy million for a variance of about two eight million now this is a little misleading in that there's some one time revenues that we have not yet received so even though it looks like we're below budget we anticipate that we will have these by year end just quickly oops i'm sorry i went a little too quick so i did want to just point out that when we look at compared to last year it's about fifteen percent higher really what this is is the impacts of measure c and we will see this more on some of the upcoming slides so this next slide is the detail for the tax revenues so we have sales tax measure c property tax and so on and we see that there is about a two hundred sixty six thousand dollar deficit i wanted to talk about sales tax and measure c together because they're the same issue with a little cav measure c which i'll explain in a moment so you may recall that back in fiscal year eighteen the california department of tax and fee administration had implemented a new software and with that there were some problems in processing tax for several thousand tax returns and separate well almost cities were impacted by that and because of that we were about a little over a million short in both sales tax and measure c last at the end of eighteen we've now received that money in nineteen so that's where you see almost a million dollars over in sales tax on the measure c there was a little added caveat with the december payment and the state accidentally sent us a check for thirteen million instead of our one eight million so rather than cashing that and having to repay it we sent that money back to them and it took a couple weeks longer to get our december payments so if you include that in in what the measure see it's at the patterns very similar to sales tax and i just wanted to highlight with transient occupancy tax it's tracking a little bit below budget by about two hundred and fifty  over where we were last year at this point but tio t's coming in pretty flat so we're watching that but it is flat we believe that it could be the lingering impacts of the tamas fire but we'll just have to keep watching that to see what happens  so again i just wanted to point out again the main cause for the large variance compared to last year is that last year at this time we had not begun collecting measure c so this next slide is other revenues so we have licenses and permits franchise fees intergovernmental and we ended the quarter we ended at mid year about one point three million below budget this is broken into a few different categories fines and forfeitures is about a little less than half a million below budget the main cause of this is parking violations so and when we look at compared to last year we see those are down about twenty five percent and the main cause of this is difficulties staffing the parking enforcement so with excuse me with those vacancies it's just translate into fewer citations issued intergovernmental the largest component to this is our mutual aid we budgeted our the fire department budgeted about a million dollars in mutual aid for fiscal year nineteen year we've received about two hundred and twenty seven thousand of that however we do anticipate that that will that will be one point six million by year in so we've we're anticipating the money we just haven't received it yet and that translates you see this this number can sway significantly from year to year it's not a steady check we get every month so it really depends on the timing of when we receive that miscellaneous revenues are down about four hundred and sixty nine thousand this is one time this is going to be our operating transfers in indirect costs miscellaneous a lot of these are based on one time transfers we just we haven't received those yet so that's really it for other revenues lastly i wanted to touch on some fees and service charges so these are departmental charges and they're below budget at mid year by about one point two million and i just wanted to highlight a couple of those so public works is down about five hundred sixty five thousand this is the majority of this relates to engineering work orders there's been some vacancies in in the engineering division that translates into fewer engineers on working on billable projects so there are some salary savings that offset some of these costs as there are with i should mentioned with the parking violations as well that there are salary savings that offset the reduced revenues and then with the library this i wanted to point out because it it looks like it's eighty six percent below where we were last year but this is really it relates to the per capita revenue that we received from the county we received to biannual payments last year they had paid that in november this year we didn't get it  till january so again that's a timing issue so that's really it for the general fund revenues i just wanted to recap we are at mid year below two point eight million but we don't anticipate being below budget at  e because of those one time revenues and the prior year sales tax and measure c so have a question about slide five the property tax so it looks like this year we're just barely ahead of last year and is that because of something that mister sumar eo said at the budget workshop or last year we had an unusual property tax revenue because of a one time or something we had a few one time payments i don't recall quite what they were there there was seven hundred thousand that we received for the rda and then there were some delinquent payments that we received so those are not factored in you're correct in our budget budgeted in our our growth assumption was about five and a half percent growth and we are tracking pretty close to budget right now okay and i know property tax has been a stalwart the last few years where a sales tax and tio t's been a little more variable so i just wanted to make sure that's why that hasn't increased a lot over last year it's just that last year was a better year tha i'm the accounting manager i'll be discussing the general fund expenditures and then i'll be moving into the enterprise funds revenues and expenditures and then be highlighting some of the budget adjustments we are proposing today so the general fund expenditures this table is a little busy but these do represent all the departments within the general fund with the annual budget of a hundred and sixty one million dollars and what i'll say to you is in echoing some of the comments made by mister murch eskie about some of the revenues that you heard which are slightly below budget we do have the majority of our departments here showing savings primarily driven by salary and benefits and vacancies and so of course where there are fewer people site siting parking violations or fewer engineers working on capital jobs you obviously have a saving but you do have that revenue impact but what i have done is is highlighted a couple of departments here that i wanted to just pull up because they are not really in the same trend and the fire department here halfway down the screen at mid year is reporting a costs just under half a million dollars more than the three year average budget that isn't really anything to be too concerned with because that is just the impact the mutual aid costs so where we are projecting more revenue clearly we've had some more costs associated with the responses to other emergencies and then i wanted to also pull out for you the non departmental variants here again the way results and this one is the main one the one point five million dollars and this is just because this is where we account for the transfer out of the measure see tax revenues received as revenue and then it's transferred into a specific capital fund and so that's why that's a lot higher and within that number as well is though as a one time three million dollar loan from the general fund to the airport fund which occurred in the first half of the year and so that kind of explains the one point five million and explains why it's such a large number there is an expense of non department question and that third department it's a small variance but that's a department that might want to be leading is there any explanation for what's happening there that i believe   and they show you all of the major enterprise funds and they show the revenues and the expenses because of course the enterprise funds are responsible for generating revenues to cover their expenses and i just wanted to pull out a couple of the what's going on so you can see here the solid waste fund the revenues are slightly behind where we would have expected them to be based on the budget at mid year and they have savings which are in excess of that so in essence the fund is actually doing better from a financial standpoint at mid year when you look at the revenues and expenses and that's primarily to do with the assumptions in the budget where i think the the revenue was projected to high and because it's a pass through agreement if the revenues are lower than so are the expenses and so if the activity in that fund is higher or lower than budget and what you tend to see is the revenues and the expenditures moving in sync with each other and so the net of that at mid year is that the fund is actually in a better financial position  four hundred and seventy three thousand the water fund you can see here that the revenues are again slightly higher with the expenses coming in slightly lower and that's to just to do with the volume of water that people are using of course and with most recent rains hopefully we'll see that the amount of water people will be using will still continue with the you know the expectation of budget and i think the staff in the water fund are confident that  then i wanted to pull out the airport fund which is doing very well this fiscal year has been a lot of good news recently with regards to some new carriers which are coming in there and we're seeing that as a result coming to some of their revenues that they're seeing at mid year and we're also seeing the impact here before you move into budget adjustments i just wanted to ask about the solid waste fund do you know what category the deviants and the revenues is is that from tipping fee collection is that from the hauling itself or at what how the year ended last year but those revenues just come from rates so with the rate payers that cover both the collection costs which are really the pass through the mark referred to there was paid to marburg the tipping fees that are paid to the county and then for our own programs but as all through the the rates we charge our customers that they get allocated to those various purposes again it's just really a matter that our revenue budget was too high but because the revenue how budget was too high then our expenditure budget was too high and that's where we're seeing a corresponding savings because the money or pasanda marburg or through through the county for tipping fees are less than what we thought so it wasn't from any one category i'm again we've talked a lot about the recycling market disappearing and we've talked about tipping fees and it seems like this is a department where most of the fees are predicted they're not volumetric so people reduce waste you're not going to see it show up in their bill because they're paying for one  canister yeah mister chary i think its prime it's really that the amount of money that we expected to collect and we pass it on to marber for collection that's probably worth most of that variances coming from not not in our own programs their programs are pretty well balanced we understood it's some of the variability comes from the collection rates levels of service that people have in there at the the curb and all that in terms of carts and cans so again i think we're we up we're a budget was too high wasn't on how much we expected to collect for on the rates for the payments to marburg so that's what we're seeing a corresponding shortfall in both okay and if you do see anything as you look at this in the in the budget process please feel free to bring it up when this comes back at the i'll do council thank okay thank you so moving on to some proposed budget adjustments this is just a highlight of some of those which are listed into your attachment three so i wanted to start with the general fund and just share with you that this first adjustment uses some salary and benefit savings within the fire department to transfer twelve thousand dollars to the it fund in this fiscal year for the funding of a new part time it specialist that will be dedicated to the fire department to help them with their needs in addition so the fire department is also working on some improvements to the fire station alert system and working closely with the it department they've identified some additional needs for that project which come to the cost of fifty five thousand dollars and so this approach this adjustment decreases the appropriations for selling benefits again within the fire department and transfers fifty five thousand three hundred forty nine dollars to measure c fund to complete that project i wanted to include this slide in here this was unfortunately missed from the attachment three but i wanted to make sure that you had the opportunity to look at it the other entries are included in the attachment but this one is required to make sure that we get the approval to appropriate the funds into the general and then the one before you here on slide four of the eight budget adjustments is a five million dollar transfer out from the general fund contingency reserves to produce more funding for the cabrillo pavillion renovation project discussion around how some of the difference between what was already appropriated for that construction contract and what was needed for that construction contract how that could potentially work and so this adjustment here appropriates five million dollars of general fund contingency reserves to be used for that project to be paid back over five years by the for the new bond issue that was recently raised which actually saves the airport department considerable amount of money on the debt financing costs and so there's the three million and then we have another inter fund proposal here whereby the a fuel side upgrade was completed and that was completed with the aid of a loan between the fleet replacement fund and the fleet maintenance fund and so these adjustments enable the repayment of the portion of the loan that was not required and also the transfer of the cash to the fund which actually you paid the costs for that fuel site upgrade which i think was about six hundred thousand dollars in the end first are there any public comments there's no speaker slips there's a lot of people in the audience but no public comment so motion by mister friedman second and thank you for the presentation thank you all those in favor say  aye the passes unanimously thank you thank you now when the agenda is a home tenant based rental assistance grants thank you miss tots whenever you're ready now that the rooms quieting good afternoon my name is lestat so i'm the senior community development program specialist for a committee development department i'm here to talk about the so we have the city has approximately seven hundred and thirty two thousand in federal home funds the eligible uses our property acquisition new construction rehabilitation and tenant based rental assistance which is what we'll be talking about today the tenant based rental assistance program or tb ra is provides rental assistance to low income households who are homeless or at imminent risk of becoming homeless us to help them afford market rate units assistance can be provided as a monthly rental voucher or as one time utility andor security deposit assistance payments depending on the households need rental assistance can be provided for up to twenty four months program the rent is paid directly to the landlord the tenant pays thirty percent of their mahr up to thirty percent of their monthly income and the tb are a subsidy covers the differen to allocate these home funds staff issued a notice of funding availability in june of two thousand and eighteen by the deadline three applications were received and they were evaluated by the following criteria the target population to be served the experience and the expertise of the applicant and the types of support services that would be that would be provided in addition to the rental assistance the recommended grants are three hundred thousand dollars to new beginnings counseling center one hundred and sixty five zero to transition house two hundred and sixty five zero to the housing authority of the city of santa barbara all three organizations currently operate city funded t each of the tbr a proposed tbr eight programs conform to the guidelines established by hud for operation of tbr ii programs and they meet the city's strategic plan for providing decent affordable housing to low income households as identified in the city's five year consolidated plan an i'll go over each organization and what they propose to do new beginnings is recommended for three hundred thousand their target population is homeless individuals out living on the streets homeless persons living in their cars and veterans they have operated their tbr a program since two thousand and seventeen and have provided housing assistance to thirty nine households with this grant they the new grant they expect to serve approximately fifty new households and in addition to rental assistance the beginnings would be providing the tenants with case management job training crisis intervention and counseling programs is being recommended for a hundred and sixty five thousand their target population is homeless families or those that are at imminent risk of becoming homeless they have received a tvr a grant from the city since two thousand and twelve and to date have served one hundred households with this new grant they expect to serve thirty five new households and this would also be an extension of their current grant and it would be extended till october of tw transition house proposes to also provide a minimum of six months of case management to each of their tenants where they could go over household finances help them with accessing entitlements or other community resources and provide career development and life education the third recommended applicant is the housing authority of the city of santa barbara and they're recommended for two hundred and sixty five thousand their target population are homeless individuals and families that are on section eight waiting lists since two thousand and twelve they have  received tbr a grant from the city and have served one hundred and twelve households with this new grant they propose to serve sixty new households and this would be a new grant and it would expire also on october twenty twenty two the housing authority proposes to provide supportive services that they make available to all their tenants with case management job skills assessment and independent living skills allocate a hundred and fifty six thousand nine hundred and fifty two of existing appropriations in the home fund and increase appropriations by a hundred and eight thousand and forty eight from home fund reserves for a total of two hundred and sixty five thousand for a new three year grant agreement to the housing authority to expire in two thousand and twenty two and to authorize the community development director to execute agreement and related documents that is my presentation any questions i do have a question so can you help me understand why it's a hundred twenty seven thousand in reserves and how do those reserves get repaid are hud grants so this is money that we already have in hand they just haven't been appropriated so it's not it's the grant it has to go out because it's a grant so it's not like a typical reserve that we would see on a normal budget correct my understanding the question correctly then committee members when their grants come in they don't always get spent in the same year so at the end of the year they just fall into reserves and like you indicate it's not the reserve we typically see in terms of operations these are just monies reserved for specific purposes created from these and they get appropriate in subsequent years i was just more like a carryover yes and reserve okay because i saw the term reserves and i thought we were we had certain reserves like we know the ten and fifteen percent we have when we're spending from reserves okay yes i understand that thank you thank  a or any questions i don't have questions i'm just very excited this is like good news for everybody and we work so hard trying to help people who are homeless or on the edge or sleeping on couches or in their cars and here's some money that we are giving to really good organizations of course i mr chair know the good work of transition house the housing authority and new beginnings and  i see that there's some measures in place the income is reviewed annually to make sure i mean we want people to make more money and be more prosperous and help themselves but the it i see everything seems to be in place to to use this money wisely and i really trust these organizations so i'm in support of the recommendation to fund these these programs you're absolutely right these are three amazing organizations that we're really proud to have in santa barbara my question is on the slide five where you talk about the you asian criteria do you look at outcomes and you measure their quotes gets placed into permanent housing but they report to us the basics of demographics the income and i noticed in the slide you talk about fifty new households estimated thirty five new households estimated sixty organization and they are they all of them are provided to us with the caveat that these are really estimates because it depends on the household that comes in and the apartment that they find out how much rental assistance they need and how much that apartment costs so there are various factors to consider so there are estimates best that's case best estimates that they can determine great thank you any work seeing no other public comment any items not on the agenda i'll go ahead and adjourn the meeting thank you everyone