come to order are there any members of the public wishing to speak on items not on today's agenda seeing none let us go to the first item which of you is presenting i'll be presenting that the revenues for so overall the first slide reflects your tax revenues for the city for the first six months of the year general fund revenues appear to be trending as expected overall taxes as well are slightly below but that's basically in part that we don't receive those taxes evenly throughout the year so on a comparison basis we look at three year benchmark averages at this point in time and as you can see that the total taxes are at twenty four percent overall as  we built that number based on prior years and last year's numbers came in slightly lower so we anticipate coming in just slightly lower than the budget on a projected basis property tax we are trend higher than budget based on county data however we'll see that number increase at the end of the year to be over budget by about seven hundred and eighty thousand dollars and that's primarily due to increased assessed  valuations based on county data they demonstrated about a four percent about four point three percent increase in assessed valuations and originally their budgets were set with a two percent increase to property values  the uut is trending as expected and in line t ot although it's slightly lower of just under ten thousand dollars on a year to date basis through december we do anticipate that  o revenue will be coming in at the end of the year i believe right now our numbers are showing at about one hundred sixty four thousand at the end of the year above budget again business license is also trending slightly higher that may be due to a timing difference this year we did send out the renewals for business license earlier in december and that was in the november timeframe so it basically had renewals earlier this year than last year last year the renewals the bulk of the renewals happened in january revenues are quite a bit higher on a year to day basis that's primarily due to fire department of mutual aid reimbursements a significant number of those dollars i believe it's about eight hundred thousand dollars was received  nine million the next slide breaks that number down to a few different categories as you can see the largest categories indirect allocations these at about six million dollars in direct allocations represent the reimbursements for administrative services and overhead to other departments and of course that's at fifty percent we allocate that class quarterly so through the year that's fifty percent operating transfers in those are revenues that represent items such as the revenues from water park for parks maintenance reimbursement street sweeping revenues for police enforcement payments from downtown association for downtown streets and maintenance and traffic safety funds for police operation the last slide are our fees and service charges these are the various fees the department's charge for services overall we're at about fifty percent two departments are running a little lower than than their year to date budget and that's community development again that's based on community development activity building activity which is slightly lower than anticipated parks and recreation is slightly lower than  little higher than last year same time park and rec revenues tend to be seasonal whereby most of the revenues received in the summer so we'd anticipate in the fourth quarter this fiscal year that those funds would would be coming in for all the summer good afternoon chair francisco can remember right i am julie nima seminole county manager in the finance department i'm gonna be talking about general fund expenditures as well as enterprise funds and proposed budget adjustments first i'm going to be talking about the general fund expenditures gonna be focusing on three columns versus the adjusted annual budget second is the year to day budget and this is adjusted for a seasonality and third is the variance without encumbrances i'm going to be looking at all the significant variances there's about a handful i'd say about four or five that i'm going to focus on primarily the very large variances or the negative variances the first one is police a police is coming in about a hundred and ninety four so they don't have as many vacancies to offset this overtime police is going to be closely monitoring these overtime costs and to see if it third quarter potentially they need to do some cost reductions or even come back at third quarter and request some additional appropriations the next is fire this is almost completely due to mutual aid activities we discuss this a little bit at first quarter this over expenditure is completely offset by additional mutual library i'm just going to briefly discuss this this is really kind of across the board additional services and supplies but library is still coming in under fifty percent at at mid year and they're expected to come in under budget at year end next  community development this is really a difference in timing it's a timing difference in some payments as well as some salary savings from a leave and leave of absence and some hourly vacancies as well as some across the board salary savings and services and supplies they're projected to have some savings at year end but we'll know a little bit more at third quarter i last his community promotion this is almost entirely due to a timing difference in a payment to santa barbara conference and visitors bureau and film commit commission for promoting tourism for the city the third quarter payment is usually made in the in january whereas but this year it was made in january where's last year  was made in december so there was a timely difference okay any questions before i move on mister weh i'd appreciate hearing a little more about the police overtime just how that is happening and and what what might be done lauri peterson to be more specific in my question it's i mean i would think that to the extent that there are more officers now on the payroll that that could they could be used to to be staffing those times when when overtime  and so yeah straighten me out on that okay lauri peterson business manager police department the challenge with the police department overall is that we use a balancing strategy between the salaries that are budgeted and the overtime that is budgeted and as positions are vacant and then filled the salary and overtime occurs as well so we balance between the actual expenditures for salaries and then the savings from vacancies although we are trending full to a fuller staff level we still anticipate that at year end we will be able to match those out just in a timing issue  on the cost what is the cost of an officer on overtime how does that reel how does that compare to the cost of an officer just straight in straight employment well and for this this is department wide so the overtime isn't just purely officer time it's also record staff and hourly or not hourly but records staff and staff that is not an officer position so that's where we're balancing that the difference in money value between the actual salary and overtime i and don't have that up on me at the  moment okay any other questions before i move on to enterprise funds no so really quick overall the general fund is coming in about eight hundred and fourteen thousand dollars under budget so overall the general fund is is looking you know it's meeting budget but police is the one area will be closely monitoring moving on to enterprise funds there are quite a few variances that i discuss in the narrative for enterprise funds but i'm going to focus on the very large variances mostly the ones that have a higher percentage of year to date variance as a percentage of your today budget primarily those that are more than five percent is what i focused on i can answer any questions you have about the other variances though so i'm going to be focusing on okay the first variance i'm going to be focusing on is in the solid waste fund solid waste is coming in about two hundred and seventy thousand dollars over budget at twelve thirty one for expenses this is primarily due to a ti difference as well it's for the semi annual payment of about two hundred and seventy three thousand dollars for the regional fees to the county for the waste management services and in the prior year the payment was made in january and not december but this is expected to change and even out over the rest of the year in the experience i'd like to discuss is for the water fund the expenses are actually coming in about three million dollars under budget this is also largely a timing difference both in debt service costs and also in the startup and running costs of the ortega well about a million dollars was budgeted but due to a delay in the startup only about one hundred twenty six thousand dollars was spent as of so more costs are expected to be spent in the second half of the year for that  startup and running of the torte ortega well in addition staff at public works is expecting to have some additional costs related to the drought the extent of those costs related to things such as advertising marketing potential staffing cost is not known at this time but staff will potentially come back at third quarter even on their own to request from counsel for additional appropriations or maybe even reprogramming of savings in the water fund to drought costs mister weh thank you so that yes the well treatment plant is currently online and we would expect to run it actually at a higher level this spring then we had been then we had to originally plan to budgeted for so some of those savings that we were able to experience in the first half of the y expect we will have additional cost in the second house thank you thank you the next variance i'd like to focus on is in the wastewater fund the expenses came in about one two million dollars under budget these are also related to some timing differences primarily the state revolving loan fund there was some delays with the unanticipated delays with this with the application process so those payments did not happen in the first half of the year as well as some  actually coming in sorry under budget of about one hundred and twelve thousand dollars at one thousand two hundred and thirty one this is primarily due to to commercial property vacancies the next variance is about seven hundred and forty four thousand dollars of airport expenses are actually being transferred the timing of the transfers as well as how the debt program is being funded in addition we expect that all to be resolved by the end of the year because they are timing differences and we're expecting the airport fun to be at budget by year end the next variance is in the gulf fund it's about twenty thousand dollars expenses or exceeding budget at one thousand two hundred and thirty one this is almost entirely due to higher water rates just from increases in water the dry season and staff has responded to this by actually reprogramming some appropriations related to the turf equipment replacement program so that will actually offset this additional expenditures in the second half as well they're planning for higher costs in the second half those are all of the variances that i was going to discuss unless you have any other questions mister white thank you one that you did not mention but you did speak to in your staff report was the downtown parking and you mentioned the good news that  there are fewer retail vacancies in the downtown corridor do we have that quantified in in any way and if so could you kindly pass that information along is that something that we have a specific sense of michele decamp from public works might be able to give some more information on downtown parking great i appreciate that thank you mister chair sure any other questions not for me all right i'm gonna move on to the proposed budget adjustments we have quite a few adjustments so i will try to keep this as short as possible the first one is in the general fund every year we get a additional we get peg fees from cox communication that are allocated to city tv and to  sb and this is a request from city tv to allocate or appropriate from reserves for a design firm contract to start the for the equipment camera equipment program that they've already been funding for that they've already requested and put in their capital program and plan so if you have any additional questions tony is here he can answer some questions on that no okay tony i have questions okay could you could you just describe in a little more detail what this is about video systems create a transition plan to replace those systems with with new equipment as you know we have a lot of aging equipment in our in our in our control room and these two meeting rooms so the company will come in we'll do an assessment we'll look at what's out there what kind of equipments out there and come up with a plan to replace it we did budget for for this last fiscal or this is the first fiscal year we've been collecting peg fees for this project it will probably take us two to three fiscal years to save up enough peg fees to do the project but this was the first step okay and and we'll be looking at a lot of the equipment we have is annal old outdated analog equipment you can't even buy it anymore we'll be looking at digital equipment and hopefully be able to upgrade most of our systems to high definition ok great thank you any othe the next recommended requested adjustment is related to community development for the fiscal year fourteen budget commune development actually requested that the rental housing mediation program be transferred from the sales grants to the general fund the sixty four thousand dollars here is what was left in fund balance in miss lease miscellaneous grants related to this program so this request will actually transfer from miscellaneous grants to the general fund the remaining fund balance and then allocate that or appropriate that out for hourly salaries to this program this next set of entries is all related to the police department the first one is related to animal licensing in fiscal year thirteen the police department did receive about four thousand dollars in donations and revenues for animal licensing a fun balance it wasn't appropriated in the prior year the request now is to appropriate from reserves since it dropped to reserves for clinics related to animal licensing vaccinations in spain neutering clinics the next set right below that are a series of entries lauri peterson who was up earlier from the business manager from police department had over the last year spent a lot of time going through all the grants that police department has primarily in the miscellaneous grants fund has done a really good job analyzing them and identifying where all of the revenues and expenditures are for those and what she's identified is that some of the costs related to the grants that have been received in miscellaneous grants have been spent or expended out of the general fund and so what this is doing is reimbursing the general fund for costs that were coming out of the general fund when the revenues were received in the miss grants fund so there were three grants identified the saber net grant the dui grant which moving on to the capital outlay fund the first entry is related to the library in fiscal year two thousand and eleven about two hundred fifty thousand dollars was programmed for the central library building reorganization project and included in this was moving the children's area and this entry is actually going to remove is going to move the remaining appropriations in the project for the project to the children's library project to consolidate the project it's really administrative function there was some available remaining appropriations to be able to do all the children's reorganization and into one project so that they're not having expenditures out of two separate projects so it's an administrative move this whole series should look pretty familiar what this is is per the city council work session it's just looking for your authority to actually appropriate all of those one time capital projects from the one time funding in the these are the other sides of the entries i was referring to on that first page the transfer these are all the transfers out of the miscellaneous grants funds for the rental housing mediation program and for all of the police department's reimbursements to the general fund for th this is also a library request and what this is is that after the development of the fiscal year fourteen budget the city of goleta actually proved its budget and they identified a contribution from developer fees of about forty five thousand dollars to purchase books and materials for the goleta branch so they this was not an amount that was known by the library at the time of budget development so this entry will actually increase revenues estimated revenues and appropriations for the purchase of in the project to the bicycle master plan update project just for the city's match so it represents for the match for the grant received prior to the update and where was that grant received from you know i don't know the answer that should be able to oh or browning allen the last line on the streets fund is a request of an increase in appropriations from reserves since the fiscal fourteen budget adoption public works has identified additional funding needs for the lower mission creek flood control project  as they enter the construction phase they need additional funds for managing the coordination and funding of certain requirements by the city design review boards so this is a request from reserves city and the county and coordination of that work the city's doing the bridge projects and funding funding in constructing the bridge projects and the county is funding the reaches in between the bridges and so this money is for that coordination which recruit the city's the lead for getting the environmental approvals and then some of the public the improvements that come out of those conditions of approval through the discretionary boards and so we've identified this amount of funding that is the need to have that coordination between the two projects for the the group project which is the lower mission creek flood control project at which the city and the county are partners and it just seems odd that i mean i appreciate that the bridges have used  streets money for their portion of the grants and such such like but a hundred thousand dollars is going for one of their reaches which is not a bridge and so it seems odd to me that streets money would be used for water conveyance rather than remember are white it the the project is to convey and have protection as you are well aware of and so the city is assisting the county with getting their project through the yes don't know where else it would come from okay for that purposes we've typically had drainage and flood control protection work be funded out of streets we've done drainage many multiple drainage improvements to laguna  okay the next entries that i'm going to talk about together are the water operating and water capital fund public works has identified additional one hundred eighty five thousand dollars of additional needs in the water distribution program in the operating fund to support on call paving services and additional paving work due to water main breaks so this request is to transfer these appropriations from the water capital fund and available appropriations from the water main replacement project to the water operating fund and then appropriate these to the on call paving services project and program this next one is in the wastewater capital program at the end of fiscal year thirteen public works did have one hundred and forty nine thousand of available reserves in the wastewater capital fund this was due to projects being completed under budget so public works is requesting that to use these available reserves in fiscal year fourteen to appropriate to the wastewater lift station rehabilitation project for the planning and design of a new force main construction project the the next several entries these two as well as the two on the next page related to airport these are all a reprogramming of available preparations to new to increase appropriations for existing projects available appropriations are from either completed projects or projects that are expected to be completed under budget as well as one project that has been cancelled just due to many reasons they don't expect that they will be able to complete the project and so the airport has identified three projects that either two of are ongoing that they feel they need additional appropriations and have additional needs for them the first one is the lessee building maintenance projects  that's several needs for going out and maintaining all of their lessee building and the other one is the aoa pavement maintenance project the one on the next page it's about five thousand dollars i'll touch on in a minute it's it's already completed it just had five thousand dollars that went over budget so these are all entries that they went through and analyzed their projects and identified projects that had additional approach available in additional appropriations and that's the top one that five thousand that i was just referring to the last entry i can talk about together the two hundred seven thousand dollars in the airport capital as well as the airport grants right there what this is is that the airport fund often will go out of the capital fund will pay for design costs for a grant that they're applying for they'll pay for it out of the capital fund this is pretty common i'm sure you're aware and they'll apply for a grant and they may or may not get approved for the grants it could be several years later well in this case they did get approved for the grant and so now they will be reimbursing the capital fund for the design cost that were expended out of the capital fund so this entry will reimburse the capital funds and they're also appropriating and requesting to appropriate the funds in the capital fund for the same project i think we're caught up all right thank  you oh that's right yes mister white might i have a motion all right fine i move that the finance committee recommend a full council that we approved the proposed mid year adjustments and accept the fiscal year interim financial statements beautifully phrased i second that motion any further discussion all those in favor hi carries good afternoon again chair fransisco committee member white we have before you today the banking services agreement renewal or new contract with union bank so i'd like to do a brief overview of the history of the  bank and santa barbara bacon trust prior to getting to this point with a bank conversion and where we're going with this for the next year okay a little bit of history of banking services city services are valued at an average of about twelve thousand dollars a month and that's been for the last several years at that level the fees for these services are provided  via a monthly analysis statement by the bank they essentially analyze all our activity calculate the fees and as i mentioned those fees range in the twelve thousand dollars range on a monthly basis  compensation to the bank for our fees are done by maintaining what we call a compensating balance with the bank so at the moment that the bank compensating balances i believe at four point three million dollars and in  we maintain that balance with the bank and we earn interest or an interest earnings allowance with the bank that then is used to offset the fees that the bank would normally charge us those interest earnings are range in about twenty five hundred dollars a month so in effect once the bank calculates their fees applies an earnings credit the hard dollar cost of the fees would be about ninety five hundred dollars per month at this time those fees are waived each month under an existing agreement that was entered into with santa barbara bank and trust and then later adopted or carried forward with union bank the hard dollar costs  are rather significant and in part that's due to the declining interest rate on that earnings allowance years ago those interest rates were much higher so in effect the city could offset all banking fees by interest earnings based on balances kept with the bank and that was that was a pretty normal structure with the decline in interest earnings those hard dollar costs became greater and greater implemented the use of union bank to include cheques online banking etc the union bank contract adopted by santa barbara bacon trust was set to expire in december tw thirteen in november the city council authorized an extension to that contract in february of two thousand and fourteen same terms and conditions applied and there were no fees charged to the city for that period of time since contract is expiring at the end of this month city staff negotiated with a bank a new ten month term contract through the end of december two thousand and fourteen what that does is provide us the same level of services for a total cost of seventy eight thousand dollars for the remainder of this calendar year it has provides for a waiver of all fees for the month of march in april a waiver of all transportation fees for courier services and armored car services through december two thousand and fourteen and the monthly costs for the months of may through december would then be ninety seven hundred fifty dollars a month they've provided the city with  compensating balance interest earning rate of zero four percent the current rate with the santa barbara bank and trust agreement was at zero sixty three percent that interest rate actually is is much higher than they would normally offer so based on what we estimated maintaining a twenty million dollar compensating balance with the banks since that interest rate would be higher than what we would earn with life we could generate sixty seven hundred dollars in interest earnings her interest rayon's allowance in a month that would provide the city with a net hard dollar cost of approximately three thousand dollars we would anticipate allocating those costs to the various funds and departments that use services for banking services similar to what we do now with interest earnings we do allocate finance costs as well on a reimbursement based basis to all the departments so we estimate that the general fund impact for this fiscal year would be in  two thousand dollar range for those hard dollar costs again we're anticipating that the interest earnings allowance would offset the banking charges for each month and and in fy fifteen approximately six thousand dollars impact to the general fund once those costs are allocated to the various departments and we anticipate that we would again offset the interest earnings allowance against the fees the nine thousand seven hundred dollars and that the balance could then be allocated either against interest or recorded as an expenditure again spread to the various departments that use banking services so what we would anticipate in this coming year this next year prior to the expiration of the next agreement well in advance actually in advance of the of the banking agreement that's before you we would evaluate all the banking services for efficiency cost savings opportunities we just underwent a significant financial software upgrade the bank offers some extensive online banking services so we would look at any opportunity we have to shave those costs down those monthly cost down we would also look to evaluate the satisfaction with services provided by union bank and and their ability to meet our needs and in that we could renegotiate an extend an agreement with union bank based on our analysis and evaluation of their services or we could consider a request for a proposal and the timeframe for that would be likely making some decision to e r move forward with renegotiation or a request for proposal and by the end of the fiscal year june thirty two thousand and fourteen so that's pretty much it in a nutshell and i'm available for any questions  so i'm getting a little clearer picture right now even at these super low rates at the point four percent that's kind of a wash with the twenty million dollars that's deposited with i think the last schedule i looked at in the early s i think we're in the five percent range so it was very common for banks to negotiate with cities to maintain a balance of funds and and the funds didn't have to be that significant to pay for the fees and it was just how it was done and that would have been the city's you weren't here i appreciate that that's before your time but that was the city strategy in the ole in those days okay because you ladies anything else a recommendation well i would move mister chair the finance committee recommend that council approve and authorize a banking service agreement union bank through the calendar year and fourteen and i second that motion all those in paper i thank you okay well that makes it feel even more momentous thank you ladies and gentlemen meeting