council approve a restatement of the redevelopment agency loan and eda trust a proven amendment to the existing affordability covenant and authorize the execution of the necessary documents casteel homs is owned by community housing corporation the property is one hundred percent affordable senior rental units there's a total of thirty two one bedroom units twelve of which are restricted to low income households and conjunction with other financing the loan itself has a four five percent simple interest and the repayment provision is based on the residual receipts method the residual receipts method is basically you take gross rents minus operating expenses allowing for reserves and if there's some positive cash flow then a payment is due this particular loan is scheduled to expire july of this year in tw the current financing on castillo homes is as follows in st position there is a bond with an outstanding balance of six hundred and ninety one thousand nine hundred and fifteen dollars the second position is the city of santa barbara's loan with a balance of eight hundred nine thousand eight hundred and sixty six dollars as of february th of this year and then the state of california alone for one hundred and fifty zero for a total outstanding debt of one million six hundred and fifty one thousand seven hundred  eighty one dollars if if you take a very conservative valuation on casteel homes of five million dollars that represents a combined loan to value of only thirty three percent the requested loan restatement terms are as follows a three percent simple interest rate allowing the reserves to be increased from currently six percent to ten percent of the gross revenues the reason for that is this is a aging project and those additional reserves can be used for much needed repairs to extend the useful life of the project for many years to come the the loan of course would be extended to expire thirty years from now in july twenty forty sixty payment terms of the loan restatement effective thirty days after the record ation of the loan restatement the monthly payment would be five thousand dollars or the calculated residual receipts payment whichever is greater on it on december two thousand and twenty when the bond is paid off the bonds in first position the minimum monthly payment will rise to ten thousand five hundred dollars per month under these repayment scenarios it's estimated that the city loan will be repaid in about twelve years we also like to amend the affordability covenant we'd like to extend the affordability and additional thirty years the covenants scheduled to expire july two thousand and sixteen of this year in addition we'd like to add a provision that allows for flexibility on rent adjustments for modern income units to encourage turnover basically in an annual basis there's a certification of tenants and if the tenants income is above moderate income levels the rent can be increased to as much as thirty percent of their gross annual income but it can't exceed the fair market rents as published by hud so the idea there is to bump the rents a little bit hoping to encourage them to move on so we can take some off the waiting list this restatement request benefits both the owner and the city the owner benefits because they have an extended loan term they now have predictable payments to the city and with this project they can provide quality affordable senior housing for decades to come the city benefits because there's no additional cost with this request to the city the loan security of the city's loan increases over time because not only is the loan balance paid down on the city loan but as i mentioned before the bond and first position will be paid of and twenty we're also extending the affordability and additional thirty years on this senior housing project and finally these guaranteed payments go to support the city affordable housing program both with the guaranteed payments  going towards compliance of the affordable housing program and monitoring as well as rehabilitation of existing affordable units and hopefully the development of some new affordable units so that conclu my presentation on this request i'd happy to answer any questions you might have we also have cindy yong from community housing court in the audience if you'd like directing questions her way thank you are there any questions for m that's correct is that general fund money no that's not general fund money that's redevelopment agency fund money okay councilmember doing it because to follow up on that where does that money then get repaid to which account member dominguez it gets repaid to the community development department and it's credited back to the redevelopment agency account which is now the housing successor account and it's used to fund future projects either for rehabilitation or added financing for say a tax credit application for a new development the  six hundred dollar per month amount how long what's the history of that level of a residual receipt a mint dominguez it's been pretty consistent last year they paid a little bit more with six thousand eight hundred and twelve in two thousand and thirteen it was five thousand nine hundred and nineteen and in two thousand and twelve it was seven thousand three hundred and two per month it varies slightly with things like repairs that are needed or vacancies that come in or what the charged rents are for each individual tenant but it's been pretty consistent what we're trying to do here is put a floor of the five thousand underneath it and it's quite possible the residual receipt payment will be higher so what happens if they get a unexpected expense and they don't have residuals enough to meet the five thousand dollar ceiling it's a required payment so they have a reserved they would pull it out of their reserves cindy young's shaking her head yes you want to come up and answer that question  you i'm sorry we've been paying five thousand plus and doing not major repairs but repairs i have to be made on the property we also have set aside for replacement and major items that need will need fixing in the next ten years and that's at the six to ten percent level and whereas this property developed in one thousand nine hundred and eighty six or was that just when the financing started out was developed in one thousand nine hundred and eighty six we developed tweak in the cash flow suggested there can you be a little more specific on since this is new to me the what's the rant just give us a real world example of even a single project in order to evict somebody or terminate elyse you have to have what's known as good cause and good cause is not the fact that their incomes too high it's something along lines that they didn't make the rent payment or they violated their lease so this proposal is to slightly increase the rents to give you an idea what to what yeah okay the rent on average is about eight hundred and thirty seven dollars that's for the moderate there's two yes chunks here that's modern when i get that this is the modern and the maximum that it could go up to would be one thousand three hundred and twelve dollars and so it's about a potentially a five hundred dollar a month increase many of the tenants that occupy casteel homes are section eight voucher so there's a subsidy coming on the voucher and they pay quite a bit less than what i've described there so we have a moderate income tenant mm hm and so and that can up to thirty percent of their income can be used to pay rent that's correct just goes on as an ongoing there's a review of their income on some kind of regular basis there's an annual certification process and then they would review their income and they could take as much as thirty percent but keep in mind it's it's capped at the hud published fair market rents which at this time is one thousand three hundred and twelve dollars yeah that's still that's a big increase obviously from the eight hundred do we have a sense of and there x number of people in that apartment complex we have thirty two tenants over there right now with the moderate you have twenty moderate no there's twenty set aside for moderate we actually every unit over there is filled with low income many for moderate and so many for low income however it's based on our wait list we're not going to not rent to a low income person because we're looking for moderate income person so whoever's first on the waitlist is going to get the apartment which is low income it's mostly low income seniors over there the average income at casteel homes is less than eleven thousand dollars per year so there's nobody over there that's even close to the moderate income which is thirty thousand dollars a year okay how does that i just then just so that i understand how we get there there's there twenty units that are described here as moderate income units that can be used for moderate so if somebody came in above low income they could come in into a moderate unit but we have don't have anyone everybody is low income okay thank you i had a couple questions to just the original loan was for five hundred ninety seven thousand dollars and now we're refinancing eight hundred  so in the thirty years we've had negative amortization alone because of the residual payment schedule we never got to that point until recently we're to the level where you can make payments that are gonna pay off the principal so how that worked yes i believe we've been paying for over five years the chairman hard that's correct until recently the the loan balance was rising in and the interest since it's simple interest is only on the original five hundred and ninety seven thousand which is approximately twenty six thousand dollars a year so until they pay more than that the balance continues to rise so it went up that's coming back down right and now it's on a glide sku up to being paid off at the correct income stream  yeah with the monthly payments the two step payment plan it'll take approximately twelve years for the loan to be paid off entirely okay any other questions i have a motion then i'll move the staff recommendation we'll be focusing on general fund expenditures and a prize fund revenue and expenses and any proposed budget adjustments this first table is a summary of general fund revenues and thirty one for tax revenues we seasonally adjust the year to date budget column for a three year average of revenues collected through one thousand two hundred and thirty one this helps us adjust for revenues that are not always collected evenly throughout the year and what you'll see here is there's three main categories taxes and other revenues are trending slightly below the year to date budget whereas fees service charges are trending above the year to date budget overall revenues are pretty close to the year to date budget coming in about three hundred and twenty eight thousand dollars below went on a percent received basis it's forty five percent received vs forty five point three percent received on a three year average and compared to the prior year revenues are up from year by about three point six percent or one point nine million and each of these individual categories i'll be going into more detail on the next few slides so the next one i'll be covering is tax revenues it was on that first summ slide is one that we seasonally adjusted that apply that three year average and overall tax revenues are coming in slightly below the year to date budget by six hundred and twenty five thousand dollars however they have increased over prior year by about one point eight percent and i wanted to mention that mister siew mario presented at the most recent budget session some detailed information on these general fund tax revenues so i won't be providing a lot of detail today but i'll go over some of the general variances and i'm happy to answer any questions the first one i wanted to discuss with sales and use tax while this is two quarters worth actually booked on a cash basis it only represents one quarter for fiscal year two thousand and sixteen and as mister mentioned mentioned at the budget session there were some one time adjustments that happened in the prior year and the current year that are affecting our sales tax growth for fiscal year sixteen we're also seeing the impacts of things such as lower gas prices low inflation more internet sales that don't produce sales and use tax so that's all affecting our sales and use tax revenues we are projecting that sales and use tax will be below budget by a little over a million by year end next our property tax revenues overall property taxes are coming in above budget this is almost entirely due to an increase in assessed values per county records utility users taxes are slightly below the year to date budget at one thousand two hundred and thirty one about a hundred and seven thousand dollars about even with the prior fiscal year there's two main reasons for this one is a decrease in natural gas prices the the one there's this general change in traditional telephone latin landline telephone usage and cell phone usage to prepaid cell phone usage and that's affecting our uut revenues and lastly our transit occupancy taxes which are down about four hundred ninety thousand dollars compared to the year to date budget there are multiple factors that affect  revenues some of them being the number of available rooms the average room rate weather conditions can impact eot so we're seeing i think there's multitude of issues that are going on here one of them that we saw that's consistently months a month affecting us is the closure of a well established motel definitely impacted our results for the current fiscal year and we are projecting to be under budget by the end of the fiscal year next i'm going to go over the other revenues these are things such as license and permits and fines and forfeitures overall these revenues are trending just slightly below the year to date budget by about two hundred thousand and just slightly above the prior fiscal year there's a few variances i was going to focus on first being fines and forfeitures which is about four hundred zero below the year to date budget this is almost entirely due to a new billing system in place at the police department those are for police citation revenues the december revenues about three hundred and fifty thousand worth were booked in january versus december so that impacted this number once you make that adjustment we're off about a hundred thousand at fiscal at mid year next our franchise fees mister smart also touched on this at the budget session we are down about a hundred and thirty thousand dollars versus the year to date budget this is also due to the decline in natural gas prices and we also have the change from last year due to that one percent utility surcharge that we are currently reserving setting aside and last inter governmental is up about four hundred and seventy thousand dollars compared to the year to date budget this is almost entirely due to mutual aid reimbursements fire department budgeted a belief about four  hundred twenty thousand dollars from mutual aid and as of one thousand two hundred and thirty one they've received over six hundred eighty thousand you will notice it's almost two hundred thousand two hundred percent higher than the prior fiscal year and that's due to the timing of the receipt of those mutual aid revenues we did receive more mutual aid revenues last year but as of one thousand two hundred and thirty one we'd only received about a hundred thousand by that point next i'll be providing a little bit more detail on our miss leis revenues i'll go back for one second i just wanted to point out the very last row is miscellaneous revenues it's in line with the budget it's only about ten thousand dollars below but the next slide provides a little more detail on what's in that line so you'll see overall we're in line with the year to date budget down about ten thousand dollars but above the prior fiscal year by eight percent it's made up of three main categories and the only one that's below year today budget is operating and transfers in and this is due to a reduction in the transfer from the traffic safety fund for moving traffic citations from the county staff does believe we'll see a pickup in those revenues in the second half of the fiscal year but we'll be watching it really closely and if it doesn't it may come in under budget  and lastly i'll be going over department fees and service charges overall department fees and service charges are about performing the year to date budget by about five hundred thousand dollars and exceeding the prior fiscal year by over twelve percent there's a few variances i was going to focus on first being community development community development is for about four hundred thirty thousand dollars over the year to date budget primarily due to increases in building permits development permits and other planning and zoning and type of revenues staff does believe this trend will continue in the second half of the fiscal year and thinks that revenues could be as high as six hundred twenty five thousand dollars over budget by year end next is parks and recreation right now it's showing that it's two hundred and sixty five percent sixty five thousand over the year today budget and forty percent over the prior fiscal year but this is entirely due to a change in accounting method we saw a slight increase in youth programs but they change an accounting method is the most significant impact here in fiscal year fifteen we took a portion of those revenues and actually held them and instead charged of the fiscal year sixteen in an effort to more accurately represent the cost of a program to when the revenues were received as opposed to just doing it on a fiscal year basis since a lot of the parks and recreation programs are over the summer last is public safety public safety revenues are coming in under budget by about eighty five thousand at mid year there are about twenty percent down from prior fiscal year i've seen several revenue sources coming in a little bit lower such as dismiss fees vehicle release fees document viewing fees as well as alarm false alarm billings but those tend to pick up in the second half of the fiscal year when we have more false alarms and that's when they tend customers tend to get billed or will get billed because you have to have several false alarms before you are billed and the reason some of these other fees are lower is we've had some temporary staffing vacancies that affected some of the revenues as well as a change in the state law regarding towing vehicles and that change in state laws actually affected some of our revenues such as the vehicle release fees so staff does believe that we will be below budget for this fiscal year because of primarily because of those changes in state laws but some of the also the staffing vacancies so we believe will be down by about one hundred thousand well one request for the future is that on the i think it would be helpful for everybody to see the this sea change that's happening with internet sales and just to have a slide or two and i expect i mean certainly clearly not you guys doing big time research to find out but if there's a an easily accessible source of just the trend and where we are just it's just as we are struggling with  our infrastructure discussion and so forth i think just for folks to have that information is really would be helpful so just and sometime in the future i have a question that just one make sure and again this may be just for another time that the community development is seeing i know that's a substantial increase in in permit fees and suchlike and i don't want to make sure that where our waiting time and and and suchlike is is staying in bounds that we're we're not just overwhelmed such that we're not providing good customer service appreciate some feedback on that at some point and i didn't understand your last comment about staffing vacancies causing fees and document viewing fees and when there's less people available to process some of these requests and do some of these actions we just don't eve as many revenues but the majority of that reduction o revenues was related to that change in state law related to the vehicle release fees and the false alarm billings are always a little bit lower we don't seasonally adjust these fees because they most of them tend to be pretty steady throughout the year so we do  generally see public safety a little bit lower in the first half of the year when false alarm billings are lower and those will be higher in the second half of the year i'm not sure if we have anyone here if if laurie laurie peterson is here from police if she wants to speak any more regarding the vacancies good afternoon lauri peterson business manager at the police department so the vacancy rate is in the parking enforcement area and that's where we continue to see that and that impacts that dismissal fees  mister chair going back to the sales tax number i missed what you said you said there's only one quarter book tour member dominguez we have two quarters represented in that number but it's one core all the sales taxes ro is one quarter in arrears so there's only one quarter of fiscal year sixteen that's actually represented in the number even though there's two years booked in that number so one quarter yes sorry no but only one quarter booked in that number even though there's two quarters so one quarter relates to fiscal year fifteen and one quarter relates to fiscal year sixteen and i'm sorry which which line item are you referring to which number the sales and use tax number i can go for all the numbers in that row so the first row on sales and use tax that figure for the year today actual actually represents two quarters of sales tax but it's one quarter of fiscal year fifteen and one quarter of  year sixteen on a cash basis in terms of what we receive because we receive sales tax one quarter in arrears so what are you actually comparing that number to the budget year is that also only booked one quarter at a time or one quarter from one  fiscal year and another quarter from a fiscal year no the budget is for fiscal year sixteen but when we look at it so we have two we do it we compare it on a cash basis so this is a comparison on a cash basis it includes the receipt related to fiscal year fifteen that one quarter and the one quarter for fiscal year sixteen but when we're looking at growth and trends it helps to know that that's only related to the one quarter in fiscal year sixteen and we do accrue at the end of the year we do make adjustments at the end of the year to accrue for the france in that one quarter that we received later it's just much later in the year and we accrue back to fiscal year sixteen but we can't budget and the year today actual these cover the same time  do bring the same two quarters they do on a cash basis we will at the end of the year true it up but we don't have the information for the second quarter of fiscal year sixteen till much later so we're unable to adjust for that as  would be a slight amount of change one way or the another to true that up for the first six months but because that's one quarter in arrears we have to go off what we received on a cash basis even though that's a quarter behind i hope that makes sense maybe you're talking about money you're talking about the cash that you received as opposed to what you booked or what you posted no we actually booked we do we have to book everything that we receive but when we book on an accrual basis all of these are booked on an accrual basis at the end of the year but because we don't have that information at this time to report to you because we haven't received the next quarter yet i'm unable to give you what the adjustment would be to give you the second quarter to show you truly what was earned and received for that first six months and that's because at some point you'll be giving some of that money back or no it's just a timing difference it's purely timing we have to wait to receive that second quarter and it's always given to us a quarter in arrears so we have to wait the next three months before we get that next quarter so we have to wri on throughout the year all we can present to you is what we've received at this point but at the end of the year as we close our books and we weeks we close our books several months after the fiscal year end we're able to then get that final payment and true up our total sales and use tax for the good afternoon chair heart and committee members i'm jennifer thomashefsky the accounting manager for the finance department and i will be going over the general fund expenditures and the enterprise funds today and i will also be reviewing several budget adjustments with you as well okay so on this first slide this is the general fund expenditures the first column it's broken out by department and the second column is the adjusted annual budget and again that's original budget with carry forward from prior year and any appropriation adjustments throughout the year the second column is the year to date budget and again that is adjusted for a three year trend as well and where we will be discussing today is here with the variances without the encumbrances and this is the variance from the year to date budget compared to actual and the first item of note is with mayor and council at mid year december  st their mayor and council expenditures were two hundred and sixty five thousand below budget and this is simply a timing difference it relates to quarterly paint quarterly payments for an annual contract with visit santa barbara to promote the city as a tourist destination and the second payment was made in january instead of december but by year end they do anticipate that they will be within budget and the second area would be with the police department and you're going to hear kind of a theme of this this is a continuing theme for that we've talked about in past and it's still an issue is across several departments we're seeing continued savings with salaries and benefits due to vacancies retirements difficulties filling some of these positions so with the police at mid year they have a savings of about nine hundred and fourteen thousand some of this was due to some overtime some overtime charges but they were offset by the vacanc savings in addition with fire we're seeing the opposite and this is this is comprised of two issues at mid year fire is over budget by about seven hundred and eighty one thousand  part of this is also relating to overtime i think in september there were about ten vacant positions that were filled from graduates coming out of the fire academy that will reduce these overtime costs but that has been a part of why we've seen this increase in salaries in the past in addition to that the other half being mutual aid activities mutual aid of this seven hundred and eighty thousand about five hundred and fifty of that's related to increased salaries due to mutual aid activities ms nima's did touch on the revenue side in it as as they're very they do correlate when when service salaries are over budget for those mutual aid activities we're more than collecting for that on the revenue side so even and we will i believe they'll be bringing back a budget adjustment towards you urine to record those mutual aid activities the next the next departments parks and rec parks and recreation and again what we're seeing is a favorable variance due to salaries and benefits savings here as well the department is actively recruiting and plans to have their positions filled by july of this year and lastly community development again we see seven hundred and sixty eight thousand dollar savings from year to date budget at mid year and again a big portion of this was salaries and benefits savings as well let's see approximately fifty five thousand is across the board savings and services and supplies but the majority of that is salary savings  land development and building construction activity is stretching staff resources so at later third quarter or by year end they may be coming back to the board  council excuse me and requesting to use some of that savings for contract to hire contract and hourly staff so oops sorry about that so in total what we see is a hundred and twenty five point nine thousand of annual budget a year to date budget of about sixty six million and a variance of about three eight million at mid year that again some of that is due to timing differences a majority of that is salaries and certain salary savings from vacancies and we do have about four million of encumbrance at mid year so that variance will close that gap will close as we get closer to your end any questions before i been on dart departmental numbers that's just a timing issue i'm sorry i'm which the last one on there that you didn't highlight well this this is basically it's an appropriation for anticipated use of reserves that's built into the budget mister samari oh he like to speak to this chair when we adopted the budget for sixteen you may recall we asked had he budgeted surplus about a million eight or so we put all of that into an appropriate or reserve we didn't just leave it as a surplus we probably actually appropriated it so next i will go into enterprise funds and it's a similar this slides the layout of the slides very similar to the last slide we have the enterprise funds and then the first column is the  annual annual budget with carry forward and appropriation adjustments throughout the year comparing year to date budget also with the three year trend analysis and year to date variance which is again the year to date budget compared to actual at mid year first what the first area of discussion is the water fund at mid year the water fund shows about a one point eight million dollar savings i'm sorry reduction in revenues and when the budgets were developed there was an assumption and a an assumption of about a twenty five percent demand reduction however during the first half of the year customers have achieved about a thirty four percent reduction in water usage so this accounts for about one three million of this shortfall and the department does anticipate that this will reach about two million by year end on the expenditure side we are at mid year there's the savings of about one million and this is a combination of a couple things there's  debt services a portion of this and it's with the debt service it's simply a timing issue there were more pain it's made in the debt service in the first half of the year but they were offset by about one eight million of savings in services and supplies so the net effect of that is about a million dollar savings and again the services and supplies they relate to chemicals waste disposal electric electricity and as the demand for water is reduced so it was the need for those services and supplies and the department projects that that will also reach about a two million dollar savings to the reduction in revenues by year end the next the next fund would be the wastewater fund and i didn't highlight the revenues there's about a seven thousand dollar reduction of revenues compared to budget which is very close to budget but the department does project that that will be a deficit of about two hundred and seventy five thousand by year end and that trends similar to the reduction in water on the on the expense side the two hundred and eighteen thousand that we see at mid year is again related to vacancies across the board across the board including the wastewater manager position i think i believe staff do anticipate that these positions will remain vacant and by year end there'll be about a three hundred and ten thousand dollar savings over budget which will offset the reduction in revenues as well on the airport the airport fund revenues are about two hundred and seven thousand below budget at mid year about a hundred thousand of this is due to vacancies on commercial leases and there was a loss of revenue due to the  sale of property and and as well there were a couple reimbursement revenues that were delayed however these are anticipated to be received by my year end i believe it was the t law enforcement officer reimbursement and the runway protection zone analysis reimbursement from the city of goleta i had to write that one down that was a mouthful okay  so the remainder of the reductions are actually spread across revenue sources kind of across the board revenues were just coming in lower than budget and on the expense side again we're seeing savings from vacancies as well at mid year it's about four hundred and sixteen thousand and staff project that that will rise to about seven seven hundred thousand dollar savings by year end and just quickly on the gulf fund what we see at mid year is revenues about sixty to sixty three thousand below budget this is higher trending similar slightly higher than last year at this time however it is below budget at this point and then lastly the waterfront again we're seeing a pattern of increased waterfront revenues and at mid year about six hundred and seventy one thousand above budget and this is just a continuation of the good  weather a big a big portion of this is property management mostly related to harbor foodservice the wharf foodservice and the waterfront grill in addition there's been about three talked about this at the work session that they're starting to see a little bit of waning of revenues in the commercial and food leases area parking is still up across the board except for the harbor because of the construction but at the heart but with the wharf so they are seeing a little bit of the going down but the variance is primarily because they're typically very conservative and they were anticipating a lot of rain this year so they kind of lowered their estimates this year so that's that's all i have for the enterprise funds and unless anybody has any questions before i move on any questions come summer white thank you so you mentioned the vacancy in the commercial leases at the airport yeah i don't see an airport person here i guess anyway curious to know what that you know i can i can look into that and get back to you okay and then a comment that  we're trending lower in revenues at the golf course and that's despite the modesty of country club being closed and i know that i know from secondhand with family members that are want to see the country club folks that are playing golf at a that we've obviously we've made some difficult decisions around the golf course and i think that those are and i appreciate that mister hardest has has some different ideas there but that at least it's those did i think it was a good idea that we at least confronted those difficult decisions and and we're just still seeing the need to to watch that very closely and then finally comment on the on the waterfront  call it that started last year and just think it's still up underfunded and it's an opportunity to make put some acorns in that tree thank you any other questions okay please continue then okay so next i have about five slides of various budget adjustments that we'll be going through so in this first this first section  general fund this first budget adjustment relates to the city tv as part of the city tv meeting room equipment upgrade project staff plan to upgrade the the  streaming equipment however before the project starts the equipment is that will the the warranty on the equipment is going to expire about four to six months before the project starts and eius staff have recommended that we do pay for this warranty in case there's any equipment failure in that in between time so this budget adjustment appropriates sixteen thousand into the general fund city tv program to pay for the warranty at the same time right now the general fund has about fifty mm in peg fees in reserves that were to be used to fund this project and so as  part of the other part of this budget adjustment moves the difference after paying for the warranty moves the difference to the capital outlay fund to help fund the program the next section of budget adjustments is for parks and recreation and this is actually to budget adjustments for two separate parks programs the first one being the i surf program now this program offers beginning level surf lessons to youth ages five to fifteen while focusing on confidence building and due to the success of this program staff have worked with the contractor who provides the program to increase the scope for fiscal year sixteen and so they're requesting a twenty five zero adjustment to the estimated revenues and appropriations and the second program is the tiny timbers program now this one this one is it relates to the nature camp program which serves youth ages seven to eleven and it offers about two hundred and eighty spaces a year and i believe there was quite a long waiting list and so as a result of that they've created this tiny timbers program which is similar to the other program for a target age of four to six years of additional hundred and twenty spaces so this adjustment would allow for the increased scope for both of those programs and the next section is relates to the library  general fund program and there's two budget adjustments here as well the first one is the library received funding from now i'm probably going to say this wrong the tweed tw foundation through the friends of the santa barbara library for fifteen zero and another twenty five zero from the orfalea foundation and these are to be spent on the children's library adult literacy and the tech lab and these this adjustment increases the program for forty thousand dollars to to purchase the materials for those for those purposes and the next adjustment is relates to the cooper's trust and the city maintains in the library gift fund and the library gift trust fund they're a reserve from the cooper's trust and this was restricted in purpose for books and audios that fall within the categories of art spirituality and psychology and this adjustment allows the appropriations to purchase these allowable materials and then well that's really hard to see this first section of budget adjustments we're actually going to see several of these on the next few slides but there are several adjustments being presented today that are basically procedural adjustments that move remaining budgets from completed capital projects back into the operating funds to it so it's basically a cleanup to allow to get allow for the increase in operating reserves to move them back and that's what you're seeing here with the special revenue adjustments for the special revenue funds and the next section is this is the county library special revenue funds and there's two adjustments here as well the first one goleta library received additional donations of twenty zero from the friends of the go valley library and carpinteria library received five zero from the friends of the carpinteria library so this adjustment increases the estimated revenues and the appropriations by those amounts and then this last one now this is for the police miscellaneous grants fund and this is this is relating to the saber net program and this if i said that right the saber net program is santa barbara regional narcotics enforcement team basically this was a multi agency grant program managed through santa barbara county which focused on narcotics efforts but the grant is no longer available and this removes the revenues and the appropriations from the budget for fiscal year sixteen and the next slide this this first budget adjustment is in relation to the airports so the airport funds portions of their faa eligible projects up front before the grants are approved and in this case the airport capital fund funded the design which was required by the faa prior to the award of the grant and specifically for the airfield electrical and safety project so adjustment reimburses the airport's capital fund for the design costs before the grant was awarded and this next this next are these last this last block of adjustments again this is an adjustment to move the remaining budget back to the operating funds for several enterprise funds or actually this is just the water operating and this next slide what you'll see these all three of these are for the same purpose so this is for the wastewater downtown parking and then  those cleanup adjustments and this next adjustment this is actually the other half of the library the cooper's trust this is just the other half of that adjustment and then the very last adjustment today is for the canine unit trust fund so in this case the city maintains a trust fund for donations received for the benefit of the santa barbara police department k program and these funds are used to help offset the cost of training maintaining and procuring the police dogs for this adjustment there was basically there was an error in the calculation of how much was needed for fiscal year sixteen so this is a correction to no so last week we had a conversation about looking ahead at next year's budget and you mentioned that potentially this year we might not have the surplus that we had originally hoped for and that that might have an impact on reserves and  the mid year budget review there aren't any recommendations to change those assumptions at this point because you're thinking that there's still time or the fiscal year for that to work out with just reduced expenditures over time in comparison  year sort of balanced in a sense thing we won't still be at policy reserves we're not going to be falling below that seventeen is where it's a little bit questionable whether we're gonna maintain pulse reserves next year yeah okay thank you any other questions or