fiscal year two thousand and fourteen third quarter review and i'll be turned over to staff in just a second we also are going to be continuing discussion of our two thousand and fifteen recommended budget and we have three topics there  fees there was a request to discuss pensions a little more and then any legislation they might affect revenue local revenues and then the third item is a discussion of creating related to the creation of a new fund is called a drought fund to capture revenue or cost associated with the drought so those are the three items but the first will be the third quarter review and i'm going to turn it over to jeannie wilson who will be starting with general fund revenues thereafter julie nima's our county manager will follow up with general fund expenditures the enterprise funds and also the proposed budget adjustments the first schedule you see on the overhead is a category of tax revenues i'd like to review the most significant tax revenues we'll start off with sales tax sales tax is trending slightly above the year to date budget by a variance of about eighty eight thousand  expect sales tax to trend just slightly below our budget estimates by the end of the fiscal year however this is again sales tax reaching peak levels that we had at two thousand and seven our annual budget for total sales tax is just over twenty one million property tax at is budget at twenty five point four million we are trending above a budget year to date basis that revenue is not received evenly throughout the year so although you see a percentage that is less than seventy five percent for the first three quarters that's due to timing of when we receive those property tax payments the good news with property taxes we did receive the sale the assessed valuation figures from the county they  estimate a four percent or in excess of four percent increase in assessed valuation our budget is our budget was based on a two percent assessed valuation increase so we anticipate that at year end we will be just over t seventy seven percent we have seen an increase in t ot and we'll expect that at the end of the year we will be coming in at over budget i believe that will we estimate that that figure will be at about three hundred and sixty thousand dollars over budget at the end of the fiscal year and the next slide are our other revenues category  these categories includes licenses and permits fines forfeitures franchise fees our use of money and property which is our interest intergovernmental and and miscellaneous as you can see overall we're over nine hundred and thousand dollars you're the date variants they're the first three quarters of the year just about eighty percent which is trending higher than our three year average this is primarily due to intergovernmental category that represents a lot of the that they incurred although we have higher revenues in this category you will see increase to higher expenditures as well and julie will cover that in her presentation could you give us a little more on the missile miscellaneous is a bigger s auction revenue city tv revenues miscellaneous sales of city property insurance rebates refunds and other miscellaneous revenue most overall in this category we are  line with where we should be it on a year to date basis the largest component obviously our is our overhead allocation so on a quarterly basis we allocate the cost that are charged for those overhead charges throughout the city departments and that that number will generally always trend right at seventy five percent i'm recalling here and seeing it didn't in intergovernmental isn't is another way that that overhead is looked at as well or am i mistaken on that in a category that i previously spoke about is a little different than this overhead allocation these are overhead administrative charges that are charged out to the other funds and departments and it's and it's and it runs throughout the system as overhead okay the next table describes our fees and service charges these are the various charges that departments charged for fees essentially one of the largest on an overall basis of a year to date variance is just is almost six hundred thousand under what we estimated for the first three quarters  the largest of the the categories is community development they're under about three hundred forty seven thousand that's it's probably primarily due to the development activity is slowed down in the activity for permits and building  n the construction community parks and rec is also trending slightly under a tune or fifty thousand that's mainly attributed to a seasonal difference again those those revenues are not received evenly throughout the year they tend  to increase the activity as the year ends for summer and at the beginning of each fiscal year so you'll see those revenues come back up at the end of the fourth quarter and likely right at where budget is estimated or slightly higher actually is what we're estimat have already been received on the per capita for example per capita library fees receive from the county have already been received and posted those are the most significant variances that that comprises this category and i'm happy to answer any questions if you have any you have any questions  good afternoon committee members my name is julien amos i'm the county manager for the finance department and today i'll be covering general fund expenditures enterprise funds and they proposed budget adjustments since i go into a lot of detail on the variances in the  attachments as well as we went through a lot of them at mid year i'm gonna be focusing on the negative variances and some of the larger variances we haven't discussed in the past so the first slide i'm gonna refer to are the general fund expenditures and similar to mid year and first quarter that three calls i'm gonna focus on are the adjusted annual budget which is the approved council approved budget the year to date budget which is the three year seasonally adjusted budget as of march  st and the variance without encumbrances and that just means that we're not including the encumbrances it's this column right there we're not including encumbrances because those could be spent at a later date through the end of the year  first variants i wanted to bring to your attention was administrative services because we haven't discussed this in the past administrative services is coming in under budget for expenditures and there's primarily two reasons for this there's about a hundred thousand dollars in salary savings for  position in human resources which may or may not be filled by the end of the year and there's about ninety thousand dollars in cost savings that will be realized by year end for the november vote by mail election so costs actually came in under budget for that election the next variance is police these are all related to overtime costs but it's primarily related to special events special events such as cruise ships count events other events that have gone on they have to provide additional overtime staffing for those events there is a corresponding increase to revenues of about forty thousand dollars it's not the entire overage here but we do  appropriations for that overtime related to special events and also watching just this overtime in general to see if additional cost cutting measures are needed to meet budget at year end the next variance is fire i'm not going to spend a lot of time on this just because we have  discussed this at mid year and first quarter it's all related to mutual aid activities and there is a corresponding increase in revenues which exceeds this this overage in expenditures the next one is public works this is the last variance i'm going to touch on there's two main reasons for this one of it is just an overall across the board savings and supplies and services prudent use of expenditures you might say and second of all is about eighty seven thousand dollars  unspent project costs for the ender underground tank project and it might just be delayed til the end of the year or could potentially be delayed till next year underground tanks brown tank project for the environmental compliance program those there one out there that we're it's hanging hanging proverbial fire you know i would have to bring up michelle decamp from public works to answer that question is she available michelle you can't public works business manager i'm not sure whether there's one particular tank that's holding out there but a lot has to do with the timing of the whole program for the under storage underground storage tanks and oftentimes were be tasked with having to do various various steps and sometimes those we meet certain parts of the program and things can be delayed and that's what a lot of the savings is from okay well thank you i haven't heard anything about that program and in a while so that would be something that i'd appreciate hearing a little more on sometime in the future or offline thank you i do have a question about the variance with the police department in returns of the overhead for excuse me the overtime for the special events we had a big discussion yesterday with the police budget about functional strength and operational strength and  or staffing tag not strength so i guess it appears to me that because of the folks who are not that are injured that we're stressing the system and we're having to have overtime to compensate for that is that a  fair summary of the problem i believe a lauri peterson from police is here she might be able to answer your question thank you mister peterson lauri peterson business manager at the police department and that's correct it's balancing that out so we're having to do a little more overtime with those who are out on injury makes perfect sense and so i guess the rest of that would be if we end up the year like that you could make an argument that we'd be cheaper to have an officer than it would be to paying overtime or is that not fair thank you so overall a general fund expenditures are coming under budget about one seven million but i do want to note that some of the variances and we talked about them at mid year are timing differences so some of the rather large variances are timing differences in payments of several hundred thousand dollars so we don't expect that variance to exist at year end it won't that gap will close by your end next to focus on the enterprise funds and i am going to focus on the same three columns the annual budget year to date and the variance and there's a couple variances i wanted to bring to your attention the first one relates to solid waste the  expenses for solid waste are currently over budget by about seventy three thousand dollars and the payments to the city's trash hauler are directly related to the revenues that come in for customer billings so this overage in the expenses has a corresponding increase in revenues so you will see later on in this presentation i'll be presenting a staff recommended budget adjustment to both an increase in estimated revenues and it increased to appropriations related to this overage the second one relates to the water fund expenses are under budget by about eight million dollars the majority of this almost six million dollars relates to unspent funds for water purchases and conveyance fees about almost four million of which was approved by city council recently and has just not been used yet so that will be you know in the near future i think some of it has actually already been spent and will also be by year end most likely used there's about a million dollars that had been budgeted for the ortega ground water treatment plant but as of march st only about two hundred thousand dollars has been spent so that's the other main variance here and the other variance i wanted to discuss relates to the airport fund this is purely a tiny difference in how debt transfers are made and it will resolve itself by year end and those were the only ones i was going to talk about unless you had any questions about if you recall at mid year we had a few adjustments regarding police for reimbursements back to the general fund lauri peterson who spoke earlier from police has been doing a really good job going through and looking at the grant balances and in this latest grants fund and identify ing grant balances and where the expenditures belong and this is one final adjustment she did identify that these to be reimbursed back to the general fund for costs related to purchasing a bulletproof vest for a grant that were made out of the general fund but the revenues were fund so this is a reimbursement back to a general fund of about thirty seven thousand dollars and it's all related to prior year costs this next one i circled it's actually two different funds but i wanted identify the entry together it's about seventy thousand dollars and what's going on here is that prior to fiscal year fourteen their public works received reimbursement for the sycamore creek channel improvement project into the disaster recovery initiative fund however the costs were spent out of the streets fund so it's a little bit similar to the entry i just referred to previously so this is a reimbursement back to the streets fund for those costs about seventy one thousand dollars to get into the details i wouldn't be planning on to because they are described in the attachments any questions on those before okay thank you this next entry it is related because it's actually a request to transfer available appropriations from salary savings and salary and benefits of seventy one zero to increase  iations for the traffic safety and capacity improvement project so there's about seventy one thousand that are needed for new conduits for the solar powered pedestrian activated flashers and there are salary savings students and vacancies in that program this is all one entry which is why i have this highlighted together during fiscal year fourteen public works and finance has worked very hard to go through all of the grant funds related to streets to identify where revenues and expenditures have not matched off over the last twelve to fifteen years it's a rather large project and it was one of the big goals of finance when we hired the accountant to to work on project accounting so they've been working on it for about nine months now and these entries really represents all that work and analysis to probably match the revenues and expenditures to the right fund so these are transfers to reimburse between streets fund measure d and streets grant capital to match those revenues and expenditures in the proper fund then that effect and what i did to make it a little bit more simple to understand because there are quite a few entries going in and out is i did a subtotal of the one adjustment you'll see about the third lying down with the numbers you'll see adjustments subtotal about four hundred twenty one thousand that is the total amount that is going into the streets fund so it gives you  a good idea of what the net effect deval these entries are it is a reimbursement to the streets fund from the streets grant capital fund of about four hundred twenty two thousand and increase a reimbursement to the measure d fund of about six thousand and then the next one i'm going to talk about is related to the goleta library in april the county of santa barbara actually contacted the library and requested that twenty thousand dollars from reserves be used for a public survey for a potential ballot measure for library services and this is the cost this is firm reserves this is the recommended entry to pull from reserves for those professional services co be next to entries i can talk to them a little bit together they're both additional donations from friends once sent in as library ones carpinteria and they're both for the purchase of books and materials so there's an increase to both estimated revenues these entries together back in two thousand and nine the downtown parking capital and operating activities were all actually in one fund and prior to two thousand and nine and two thousand and nine a capital fund was established to separate those activities and when that was done appears about twenty six thousand dollars of costs were not charged to the correct fund and what it did was create a negative fund balance in the downtown parking capital fund so what this is is just transferring from the operating fund of the capital fund to clear out that negative reserve balance and it's about twenty six thousand dollars this is the entry i was referring to earlier regarding solid waste solid waste does have additional revenues as well as increased cost this year the staff is projecting approximately four hundred  dollars of additional costs related to excuse me they are having billions they expect billions for trash and recycling services to exceed budget by about four hundred thousand dollars and however they have some salary savings and some other cost savings so they don't think they're going to need all of the additional appropriations so they at by irri and they believe they're gonna need about two hundred thousand dollars in additional appropriations so the recommendation is for an increase in solid waste  revenues estimated revenues and an increase to holler payment appropriations of two hundred thousand dollars this last entry is related to the golf operating in a golf capital fund parks and recreation has been doing an analysis of their irrigation system to try to better develop a better irrigation system to meet the needs of the  golf of the golf courses and to reduce their costs and they have identified that they can put in a irrigation infrastructure upgrade for about a hundred thousand dollars so they are requesting to use about seventy thousand dollars from projects that have either completed under budget or can be delayed to a future date and then to use about thirty thousand dollars from operating reserves and you put that into the capital fund to do a hundred thousand dollar upgrade to their irrigation system in addition to this request they have put in the request for an adjustment to their fiscal year fifteen budget to reduce the transfer from the operating to the capital for capital projects by about thirty thousand dollars so that they're able to restore tho reserves in the next year and the purpose of that to lower water use what it will do is it'll use more recycled water so it will lower abusive potable water and use recycled water so if we could get a recommendation or some action on the committee members to prove this these adjustments than the report we are not going to go into the detailed discussion of the proposed adjustment with council we're just going to give our overview the reports so recommended budget and we're going to start with is a discussion of proposed fee changes for the enterprise funds and as we talked about last time you've seen a lot of this already particularly with water and wastewater so we're not going to spend too much time we're just going to kind of go over those again real quickly and then give you a chance to ask questions and we will start with with the waterfront department good afternoon payment finance committee members my name is brian bossy and i'm the waterfront business manager and we're here today hmm i'm here with scott reidman our director to review our proposed fee changes for fiscal y so jumping right into it our proposed fee changes are as follows the first is regarding our slip rental fee we are proposing a two percent increase across the board on all of our slip rentals we have eleven hundred and thirty nine slips  the various slip sizes our next proposed fee change is we're shifting gears a little over to our slip transfer process our fees and we would are proposing that we would freeze the slip transfer fees for twenty five foot slips this is we have the most number of twenty five foot slips out of all the other various sizes of slips i believe we have two hundred and forty three out of the eleven hundred and we're proposing to freeze that at three hundred and fifty dollars a foot if approved this would join the twenty foot slips which were frozen a number of years ago at two hundred dollars for per foot so if that was approved our twenty and our s are already approved for the freeze the twenty five would twenty five foot slips would also be frozen and then for all the other slip transfers we are proposing that that it be increased another twenty five dollars per foot which would take it to three hundred and seventy five dollars per foot for our slip transfer fees and again that wouldn't include the twenty or twenty five foot slips moving on to how that two percent slip fee would impact the various slip sizes you can see on the far left the various categories of our slip length twenty all the way up to sixty and we do have some in between here but these are the generalized categories  so for a twenty five foot slip that would be that two percent increase would be seventeen cents per foot which would result in an additional four dollars and twenty five cents a foot so currently that slip fee for a twenty five foot vessel is two hundred and twelve dollars you add the four dollars on to that foreign change and your little about two hundred and sixteen dollars per month for that particular slip and the hive would be the sixty foot increase of thirteen dollars eighty cents currently sixty foot slips run at just at just under six hundred and eighty dollars for the month so that would be an additional thirteen dollars on top of that to see how this compares to other marinas what we do every year to make sure we're in a good place with our fees as we survey seventeen marinas all the way from santa cruz down to oceanside what you'll see on this particular slide are just our local local marinas some of them privately held and you can see this is with the two percent proposed two percent slip increase santa barbara's at the top there and we are generally across the board below all of the other marinas and harbors in our vicinity and this again this is our more localized version but even on the larger version from santa cruz down to oceanside santa barbara's slip fees are very favorable to the folks who have boats in the harbor and we generally are the lowest or one of the one or two three lowest on the books so as you can see here  just go ahead and pick any slip fee the thirty footers with that two percent increase would be two hundred and seventy two dollars and it goes all the way up from there to four hundred and thirty four hundred and thirty nine down in  the increase on what it would be on a per slip basis but also how we compare with other marinas i should let you know that the harbour commission reviewed all these fees as well as our budget at their march meeting and recommended that we forward to the city council for approval so with that i'm happy to take any questions you might have thank you tomasi any questions i have a question i guess the philosophical question is when you're under market pretty consistently well inc is it not pretty consistently in every category fairly significantly that's an it that's a philosophical approach i guess to what you charge so maybe tell me more about that i mean is that a trend that's the gap is growing over time in terms of we're staying at the cheapest rate in comparison to other our neighboring or the neighboring market or is that something that's holding consistent committee member heart i believe it's holding fairly consistent we're now required to increase our slip fees annually by our loan covenants with the division of boating and waterways for a reconstruction of marina wan so we need to increase them every year  in terms of why we you know this is we have some elasticity obviously in the slip fees and so if we were to encounter an emergency dredging situation it is the one that really jumps out if we were to lose some or all of our dredge funding then there would be some wiggle room here to increase our fees higher so that's helpful so are we anomalous in the sense that we have an outside funding source for dredging do these other entities pay for dredging is that part like theirs is there something different in terms of the quality of services or the extent of the services that makes their price point higher than ours yes generally these marinas that you see up here which we just picked from the ventura and channel islands area a lot of them are our single births or the dock comes around both sides of the boat or as we have double births where we squeeze two boats in okay in one birth so they have a little bit nicer amenities  admittedly however santa barbara continues to be extremely desirable harbour i would point out that some of these for instance ventura isle marina has a sixty one percent occupancy rate right now whereas santa barbara has a hundred percent occupancy rate and i could go down the list on but most of these marinas have a vacancy issue which is the opposite of our problem yeah that's really helpful too good okay okay i think that that does it for now thanks now as a slip holder i will we need a motion on this for moving this forward in any way i'm sure and if so we'll need to defer this yeah we could defer it to the to the next meter or the this is quite a busy slide and sort of demonstrates the complexities of actually pricing golf and kind of i'll summarize it for you in terms of we offer prices for golf depending how old you are and depending on what day of the week you play and fees and again we're applying the same increase irrespective of whether you are in either of those categories and then finally the thing i will just remind you is that we do have a thing called the players improvement fund  both the improvement to the players experience and allows them to have a little bit more ownership about where those funds are actually spent and i can say that we've already spent over twenty two thousand dollars this year on improving the tee boxes on the golf course and looking to see what the next thing we can do is with our current funds and other than that really is a bit of status quo thank thank you any questions thank you i don't have any questions just very good news until they understand the approach given the group the drought and the stress on the course from it so thank you thank you yep sorry just give us a second here we experience approximately four zero lost tickets on an annual basis and out of those about a thousand results in our staff having to make contact with the people because they've had multiple cases where they've lost their ticket and we are finding as they they have  learned depending on how long they've parked there it might be cheaper to say i lost my ticket versus paying the hourly rate for their ticket so currently we charge ten dollars at the kiosk and if they have had a prior curren t staff will look at our database and then we'll send them a bill for fifteen dollars for the second occurrence and third and so on so forth so many times when we do that the person does not remember that they their ticket because typically it might be a month a month and a half before they actually get the bill in the mail so they say hey i didn't lose my ticket i don't remember parking there so we have to actually pull out the envelope that they signed with the drivers left with their license plate number and send it to my show them that see is this your car is this your  signature and there's some cases where people say well that's not me i personally had to deal with one of those myself so it was a person i knew who had a ticket so we feel it's better customer service just to charge a flat fee for proposing  downtown we're it's going to be roughly fifty percent of what we charge in lot ten and we don't feel that's gonna have a really much of an impact in terms of people not one in the park there it is our most popular a lot we are  issue is some of the people who have not been paying and maybe they have bought a tick sign up for monthly pass and partly through the fiscal year they decided they're not gonna pay anymore but they still have a pass and they're continue to pay so if they answer you know pay sixty five dollars a month for a few months they might think twice about gaming the system so we're looking at ways to address some of the issues we're having a lot that sixty five dollars a month we feel this more in line with what we're seeing in the industry especially in comparing it to latte and a lot eleven which are good afternoon joshua hag mark acting water resources manager and we've been over the water and wastewater rates frequently over the last few months here just to kind of summarize we did take the current water rates to the water commission and to council we did that in april my full council saw this at the end of april and following our the two hundred and eighteen process we'll be having a hearing on june th the water rates we tried to with input from water commission and council minimize the impacts to our we consider our tier one water users or people that are really conserving water life safety water and so we can only be raising those by three percent and then from there the rates will go up depending on what tier you're in and what kind of water meter you have across the board three to four percent increases for all other services leader fees taps connections like that we anticipate an increase in revenue of two four million dollars now again that's predicated on twenty percent reduction in water usage and so all of this is based off of a  model rate model that was put together and so we'll be actively watching this to see how conservation plays out and how these rates continue to come in and we'll be reporting back to to council on that with our monthly drought updates the recent information and yesterday was conservation had dropped off we only were receiving about five percent reduction in water usage for the month of april which was disappointing march was about almost fifteen percent reduction so  how variable it could be so hopefully it'll kind of stabilize as we move into the summer and with the discussion on stage two drought and then there's a wastewater fund we also brought this to the finance committee and discussed the water commission and we completed a extensive rate study this last year at any rate study and are recommending a five and a half percent rate increase the large driver behind this is the capital projects at ellis taro there's some significant projects need to be done to the thirty year old plant and that this additional funding is to help offset some of the debt costs associated with that  there'll be three percent increases to cap fees and other miscellaneous fees ultimately looking at at two hundred and ninety thousand dollars revenue increase proposed for next year  i have one about just about that disappointing conservation number what what what are your thoughts about that for we rally the troops what's what's what are the what our staffs thoughts about it's a great question that i was it's a great question the data it came in commissioner white good the data came in monday afternoon right before water commission so i haven't had a chance to comb through that april was fairly warm as you remember and we didn't get we didn't see much rainfall but we certainly didn't anticipate conservation to drop off that quickly particularly based on march response certainly hoping the discussion  next week about the stage two and we've got a pretty extensive media campaign to follow and then obviously the great structure change coming in at the end of the gel i think you're coming with july billing will help people start to really take th on all customer classes whether it's single family residential multi unit residential or business one point six percent on everybody that's a combination of the cpi increase to marburg that we're contractually obligated to pay them a very small tipping fee increase in the disposal and processing facilities that we use to process and dispose of our waste and the new fee of zero point seven percent for public container maintenance and replacement not to collect them not to tip them this is simply the repair and replacement of the one thousand three hundred containers that we have scattered throughout the city the only other difference pertains to the multi unit residential class and that is we are on a revenue neutral basis no additional revenue tamar borg we are rebalancing the cost between the equivalent volume of material in carton cans versus dumpsters historically has been very cheap much cheaper to use carts and cans we partially closed that gap in our negotiations with mara borg as part of the new contract over the long term we'd like to bring that up to a one to one relationship this will bring it to within six percent so material and carts and cans will only be six percent less expensive than the equivalent volume and dumpsters we'd like to keep continuing to close that gap over the next couple of years if you have any questions i can take those questions mister for no no in legislation and i think of public works except michelle josh hegemon will discuss the creation and you drop fund you know just one point before we even get into this obviously the reason we're not asking a lot of questions because this is the second time that this come through we did a really excellent job in front of the whole council with each of the departments talking about the fee increases so you know this is it's not like we're not paying attention or not engaged and you're not you're doing a great job of presenting it but this is the second time through yeah we understand we're watching on television wondering why are they not asking any questions about all these increases good afternoon my name is joshua hag mark here to talk about the creation of a drought water drought fund the main purpose of this is to keep track of funds related to drought ultimately hoping that if indeed eight emergency is declared we could possibly get some emergency funding or grant funding for some of the drought related expenses there were two chunks of money that we have moved into this to basically set up this fund one is the three point nine million dollars that was appropriated by council on february th with the declaration the stage one declaration that was for the purchase of supplemental water so that was a portion of it and then there was approximately three five million that we've made available by delaying planned capital projects most significantly was the annual water main project and so we put that on hold for now and reed averted those resources to go towards drought related funding projects in the end it it has helped reduce how much we've had to increase the rates overall and how much we've had to dip into reserves by being able to kind of balance this but ultimately the purpose of this drought fund is just to keep track of these basically emergency specific funds i mean if we were to have a fire we would be doing a similar type of restructuring or a flood to kind of make sure that we tracked those funds and we're able to if there's a possibility to recoup some costs from that any questions i have a question about the the status of the water purchased could you give us an update on where we are with the water purchase yes commissioner white reported to water commission last night things are looking looking up on the on the front with water supplemental water purchases  we did ultimately submit a an offer to purchase some water from the sacramento valley related to rice farming up there and that was approved by department of water resources to go forward that water will be delivered july august and september so we should have all that water accounted for by october presuming there's no major catastrophe or issue that water should be conveyed to the delta we purchased two  water with the assumption that we will get one three hundred acre feet actually delivered the cost of that water delivered it's somewhere around one thousand two hundred dollars an acre foot which in this climate is it's not not too bad vandenberg air force base  we're in discussions with them through c cwa the central coast water authority and it has cleared their legal department and so it's currently sitting on the base commander's desk for approval and this would be additional water that they have stored in san luis reservoir for sale they are looking to get the cost that they have in that water back out which they estimated it was a little over a thousand dollars an acre foot so it's kind of actually in the same price range of the the north delta water but it's a very secure source that's sitting in san louis now and can be delivered as soon as there's room in there in the pipeline additionally the city has water stored and and that and the city's portion of that is three or four hundred  addition the city has banked water with a groundwater banking program in kern kern county we banked about fourteen hundred acre feet with this group called dudley ridge and we are in discussions about getting that water turned back to us with the five percent state allocation there's actually now water moving in the state water system we're hoping to do that exchange maybe with the help of metropolitan water district but that looks that looks to be moving forward that's another significant chunk of water and then just some miscellaneous water there's approximately one hundred and sixty five acre feet as part of that five percent allocation that we've got this year there's a little bit there so in total we're approaching close to fourth an acre feet of supplemental water there's not the capacity to deliver all that water this year but there certainly will be capacity in next year because there isn't any state allocated water so there'll be lots of room in the pipeline to deliver water next year so very optimistic going into next year i feel like we have a nice nice buffer if we have any issues with wells or we're having difficulty reaching our conservation goals we have some little margin of wiggle room great thank you that's just really good news thank you for sharing that with us and then just to be clear about the drought fund so you're capturing all the extraordinary expenses right as you didn't specify them all you loved him into that three and a half million dollar that includes the nine hundred and some thousand dollars we spent last week or authorized spending last week absolutely commissioner that does include any project work with the desal and includes these water purchases that we're moving forward with so it wells certain well project stuff that we have like alameda well we're doing work on that's actually a project we had planned out we're just moving it into this year so i don't think we're tracking that one necessarily as a drought relay project because we're just moving forward capital that we had planned but anything that's emergency related we are in a reclamation plant wouldn't be in that category at all it is not although we are pursuing going just for drought related projects and we think this is a very pertinent project and we received support regionally from the urban board to move this project forward as a priority so more good news thank you okay great all right we're just trying to keep this interesting so we never go back to the airport they're going to talk about their fees this is always interesting mister sumar good afternoon council members my name is tom bowlers on the administrative analyst at the airport we are proposing one fee change to our long term parking lot daily maximum rate from nine dollars to ten dollars the airport commission has encouraged us in the past to gradually raise our rates in line with other airports in the country and california we did a survey of comparable california airports we looked at eleven airports and the average fee was thirteen dollars median was twelve dollars so we thought it'd be a good idea to bump it up a little bit from nine hundred and ten again like i said we anticipate very little revenue gains from this because long term lot two is currently closed we closed it on april one all right great well thank you very much adjustments but we'll also be asking you to prove essentially everything you've reviewed thus far through the last three meetings whether it be fees or anything we looked at and just give kind of one big recommendation for council to approve of the things that we've brought to you whether it be changes or anything else all right great so when you say anything else well we looked at revenue assumptions that were next year in the multi year which is not really related to make sure his budget per se but things that we brought you i think we looked at the revenues what assumptions to me for this year next year that are built into the budget the fees and then i actually one came from mister mister white having to do with pensions and so we're going to talk a little about pensions i know you sort of gave us the option that we could talk about it later in the year so i'm not going to spend a lot of time just a different look on pensions and really looking at salaries of benefits as a whole  just more information more education about kind of what what makes up our salaries and benefits and then mister hart the question you asked about is there any legislation out there that could potentially generate revenues to the to local governments to the city so we'll be talking about what's out there o answer is not really but we'll talk about just some things that are out there budget this year but i wanted just to kind of run down to the things that we are that are part of compensation total compensation to our employees it's probably more than you might have thought obviously salaries the street salaries we pay our employees is the number one and the biggest item but there's always there's also the hourly salary so we have hourly employees seasonal and the like that we pay about two points almost two point nine million dollars over two point nine currently there's also overtime this is regular overtime primarily out of the pd the police department they have always incurred overtime for people for having to broaden to be brought in weather because people are injured or sick or those kinds of things or on vacation we also have another overtime category which we call flsa this release exclusively to the fire department the way the shifts work is they always will have about three hours per week of over time which pursuant is federal law and you can see what that dollar represents the group insurance that's with the city's portion of health cost whether it be for dental vision medical that's the city's person and everybody pays a portion or to some extent some portion potentially depending on the bargaining unit but this is just a city's portion and then retirement is the city's share of those costs of currently as you know employees are picking up a portion of that workers compensation this is the the program that's managed out of a separate fund it's a both for liability workers compensation and they charge premiums to all city departments based on their relative or respective experience so obviously police where we typically see more injuries on the job they will get a higher premium if you will but citywide back in nineteen ninety eight those premiums to the general fund were about a million and now they're about one eight but other funds are also charged at workers comp premium retirees those who meet certain requirements particularly having to be with the city for fifteen years to vest they will get a stipend if you will presumably for i ostensibly for medical offsetting met with medical costs insurance premiums unlike when they retire and it goes up to the age sixty five it's not a big dollars in the two to three hundred dollars per month range but that's something we beach we track as well we started budget budgeting for that sometime in two thousand two thousand and one but we we don't allow that anymore we've sort of done away with that that particular benefit if you will and then opm's other post employment benefits those are that includes retiree medical it also includes what we call implied subsidy that's where our retirees get to take advantage of the preferred insurance premium rates that we all enjoy here this that are active employees so when you retire you participate in the same group insurance program and your rates are effectively subsidized and that's something  budgetary basis in the past has not been budgeted and also includes vacation when we have when people do leave the city not not every year they can cash it out but when they leave the city they're entitled to their vacation hours and you cash flows out so we've started putting some money aside on a how much we're funding every year so we don't fall behind and we keep up with those costs and in fact start making progress toward the unfunded portion related to retire medical and in the implied subsidy that i mentioned so that's kind of a detail of all the costs that relate to the three major cost components salaries of course but group insurance and retirement and in really the dynamics that have occurred since ninety eight to the current year how they've changed over time not just in terms of dollars but under on a on a percentage basis so the top line represents the sum of those three components so that the purple or blue i'm sorry the blue line are salaries so since one thousand nine hundred and ninety eight they've grown to from about thirty three million dollars to over fifty million dollars but that growth represents about two nine percent on average per year so that's not the way we actually played out of course because some years it was higher some years it was lower but on average it represented two nine percent growth every single year through two thousand fourteen retirement which is a number of the lower the robie the the line below in green that has grown on average nine and a half percent per year so it's a much bigger growth will be seen in that category group insurance there's been a little over cpi so about four point two percent on average but total at the very top when you combine all those it's been about a four point two percent average growth every year of compensation just wanted to show you how it plays out between those three components clearly retirement has been the fastest growing element of our compensation to our employees so a different way to look at this is you know mister white sometimes you ask you know when we give a dollar raise what does that really mean what's that what's the true compensation because there's some impacts to that so what i did was for the one thousand nine hundred and ninety eight and fourteen i used salaries as sort of the base that that presents one hundred percent and what does what does all these other components represent as a percentage of salaries so for example in one thousand nine hundred and ninety eight retirement was twelve percent of salaries so for every dollar of salary we were paying twelve cents toward retirement and similarly for every dollar of salary we would pay ten cents toward health and so forth you could see how that's changed over time so that now in two thousand and fourteen retirement is not is not twelve percent or twe cents for every dollar is thirty three cents or almost thirty four cents for every dollar we given salary that has to go toward retirement so that dynamic has changed pretty substantially health insurance has also gone up not as dramatically workers comp is actually been pretty stable as a percentage of salary and so forth but just again to show that retirement has become a larger component of compensation but but in terms of every dollar or salary it's just a bigger expense that we incur relative to back in  that thirty three seven percent that it's a combined number because within the general fund we have police firing everybody else but you can see in two thousand and fourteen how that is broken down so for miscellaneous it's twenty three cents for every dollar see how that will change miscellaneous will go up to almost twenty nine percent police forty six and fire forty nine percent so for every dollar that's how much you're gonna expect to add for retirement on a combined basis it'll likely be somewhere around thirty eight percent so what it is today is thirty three seven it'll likely be thirty eight percent so again for every dollar or salary in two thousand and twenty we'll have to contribute thirty eight percent on average thirty cents for toward retirement of our employees so this is the this is what i wanted to talk about in terms of pensions and salaries are not riverboat oh responsive to what you had requested but just a different look cuz we've spent a lot of time talking about unfunded liabilities i want to just give you a different look of this any questions any of this it yeah oh it's just give more on the retirement or no okay i'll have a couple of questions to throw at you for another time or just alright and i think something that  obviously the retirement system is not in our control and that what we're projecting in terms of contributions is the result of best efforts to to look into the future but there's a fixed obligation to pay a certain number of people and whatever it takes to pay them we're going to have to pay how many people do we pay how much are we paying now or how much did we pay in two thousand and thirteen as the cities i presume the city has an account with pers and we're paying x number of dollars a d that might be an interesting figure if i presume pers could provide that to it and what we are writing checks for that represents the city's cost not the employees portion that they're paying out of their paychecks but it's in the general fund this year it's about sixteen point eight million dollars is what we're paying to pers to fund but what they call the normal cost just to kind of keep up with things but also to amortize the unfunded liabilities as you know so we can make some ground on that so that's how much  over paint each year just in the general fund but in pers there's we we have an account we do we have we put in what four hundred million dollars we have currently with pers all right so we have four hundred million dollars and know email basis not obviously nobody's going to go digging around trying to trying to do that but i think that that i would appreciate and i'm not sure purrs would be able to provide that to us but we'll look into that just ask them anyway okay and another element that i did again if if it's a bit available i can picture the number crunchers up there perhaps having this not only how many people are there that are our former are now our retirees we're going to have our stable of retirees up there how many are there and what's the age distribution of them you have anything else that interest you in the chart meador okay great okay thank you thank you very much sure so the next thing we want to talk about is legislation this is just kind of a mini legislative update to respond to question any revenue potentials to come into cities so i'm going to talk about four areas one is what i would call is relates to enhancing or preserving local revenues a lot of it is just trying to preserve what we got talk about infrastructure financing that's a big deal right now because the rda is going away our rda going away in fifteen anyway but just statewide the fact that they've been eliminated there's some some discussion about how to spend what's called the cap and trade revenue and we'll talk a little bit about that as pursuant to a b thirty two and then a little bit on affordable housing so in terms of enhancing our preserving local revenues there are two areas right now that i've been that are being discussed one has to do is prepaid wireless and the other is a collection of sales taxes on the internet for internet sales so prepaid wireless this is actually something that's been interesting it's been a growing area where people are instead of having a contract with a provider and with all the minutes and all that they just they buy up  device they can buy at walmart or wherever and they just buy prepaid phone cards and currently those are not subject to you to their users taxes because there's no way to sort of dent afire track where they're from where they live how to you know some kind of nexus to the jurisdiction and it's a growing market it's interesting that's been growing in the last few years and so it's becoming you know a bigger number and what's estimated statewide is that there's about sixty one million dollars of lost revenues to do as a result of prepaid phone cards if you will and as i said it's a complicated matter because how do you find these folks how do you know you know where the taxes should go so there is a assembly bill three hundred is perea it was back in two thousand thirteen cities and the league generally supported it the problem with it was that it had the state board of equalization would be administering and collecting it just the same way they collect sales taxes currently so they kind of have a system and an infrastructure for that but they're there their fees were pretty high and there was concern about that but at least local agencies were thinking well we're not capture any of that maybe we can start a negotiate or come up with some amount in the end the governor vetoed it didn't like it because of the exact reason t because of the fact that there is so many there's but it's pretty complicated there's they're talking but tends to you may be excluding small retailers because they was probably going to focus on the big on the big retailers like the walmart's and like i don't see this as being a big impact to us because we don't have those targets of the taxes are only applicable if there is what's called a physical presence in california which sort of the bricks and mortars here in california so of yura outside of california the entity was not required to collect the sales taxes so you had a facility in utah and somebody purchased through the internet something from you you weren't required to collect sales taxes those up really to the person who bought the trend bought the product to pay the use tax portion of that to the state which of course never happened and then in two thousand and twelve governor brown i think they did a pretty pretty impressive thing he he proposed and eventually approved legislation that created a different sort of threshold for what is considered physical presence or nexus in california and this was really it was the amazon law even though amazon at the time didn't have any physical presence here he established based on how much volume of sales you had within california that you've essentially had a nexus initially amazon balked at that because they were like i don't wanna be paying sales taxes are collecting it for you and they actually threatened to leave california but then they mention agreed to do so and they are now collecting sales taxes for for those transactions that occur within the state of california since then they've added some facilities into california but pardons but right now they are the artifact collecting them and they're being allocated out to the counties where those products are being delivered so it's not based on sort of where and then we get our we get a share that based on how much sales taxes we collect within the city of santa barbara relative to other agencies within the county so we kind of get a portion but not necessarily all of it but but maybe there's some equity there it's not a perfect system but at least we're getting some sales taxes on those transactions now that we've worked in the past of the issues is now has to do with the way the law relates to if you have a distribution center like the amazon who has them now in california what about transactions through the internet where they're being fulfilled within the state of california so there's distribution centers in california and technically the law would read that those transactions would be would be allocated or those taxes would be allocated to the jurisdiction where that sale occurred the point of sale which is where the distribution center is located and that's kind of where the discussion has been city of tracy city of paterson city of san bernardino's they they made some nice deals with amazon to come to their local local jurisdiction  on the basis that they would eventually start getting those sales taxes for all those transactions that am that they're fulfilling within those distribution centers regardless of where they took place they're still currently being allocated based on the point of delivery they go to the county pool but i know tracy patterson  and like our arguing with the state board of equalization that no those those money should come to us and a quarter of the state law that's that's how it should work so that's currently not happening but but so it's still being done and sort of through the pool basis from amazon we get about a hundred fifteen thousand dollars a from amazon not a lot of money obviously but it is a growing sort of sector for us and statewide so there's some exposure there for us any questions on that no it's a little complicated but i'm question about  the any estimate there might be of online sales or what's the what's the scale of that for shall we say the city of santa barbara good you know the out there current i think for us you know the fact that amazon is now pain and pain based on where the delivery occurs there the big dogs my guess is they're they represent eighty percent of the train actions that are occurring online  there's still some i would say some some leakage and what i mean by that is that there are still transactions that occur via the internet from companies that are outside the state that because they're small they're not c sales taxes for those so there's still some of that going on but i think for instead of california amazon is the big dog and the fact that we're collecting from them i think is that this is covering a big dollar amount the rest of it is probably not a lot of money to us infrastructure financing districts i mentioned the redevelopment agencies that i'm going to weigh statewide it was really the biggest tool for redevelopment and economic development in the state there is existing law currently that allows us to create infrastructure financing districts it's always been considered to be pretty low ngerous it does sort of use the same approach tax increment financing you wouldn't raise taxes percent but you would sort of freeze the tax base in that district and then the increment would be used to finance economic development projects or in capital improvements it does require approval from all affected taxing agencies so that's one of the hurdles that makes it difficult it also requires a two thirds approval after you've gotten approval from all the taxing agencies that the voters approve it at a two thirds threshold there have been some attempts to create new tools and one of the things that we think is important is if they could lower their the threshold for voter approval on special taxes that would be used to finance capital improvements currently as there's of course school districts there the to fifty five percent but you still considered cumbersome because of the other requirements help to us because of the the process required to create these i think for us the biggest improvement would be to lower the threshold for special taxes so we don't have such a big threshold to to cross a couple other ones we call real quickly i'm not looking ahead on the slides but there are bills to do that in the legislature you just didn't list them all because there's a lot of them yeah yeah there are a couple other ones the same thing just having to do with infrastructure financing but nothing that we see that that's cap and trade there are back in two thousand and twelve a number of bills or several bills were adopted that established what's called the greenhouse gas reduction fund and this is going to be accounting for monies that the state is expecting to receive they started this year next year they're expecting somewhere around eight hundred and fifty million dollars and that's from the sale of the allowance allowances or emission allowances so under the cap and trade program you're given allowances and they actually are selling those and they expect as  said about eight hundred and fifty million dollars next year that's what they've estimated these bills provide some framework how the money will be spending but there's a lot of details that have to be worked out but i know it does require the twenty five be expended within disadvantaged communities the governor's proposal as i mentioned they have eaten fifty million dollars are expecting six hundred million dollars under is proposed would go to transportation programs or projects and two hundred and fifty million of that would go to energy efficiency waste diversion and clean energy emission reduction projects however we can define those but that's one opportunity potentially for us it's currently been referred to the natural resources committee and the league is supporting that bill there is not a bill but a proposal from from steinberg and it does focus on housing and transportation and under his proposal proceeds from the allowances the emission allowances would be allocated as follows forty percent to affordable housing including community communities built around transit options thirty percent to subsidized transit projects and then ten percent to fund basic transportation infrastructure roads and highways and and as proposal is that most of these monies will be available to competitive grants or competitive grant process probably more that you wanted to hear when you ask the question but i just thought i'd go through what's out there you know i thought that was very good i thought that it's really helpful and i think in the big picture as you said before to start off with the real issue is the cap and trade funds the eight hundred and fifty million dollars in the budget for this upcoming fiscal year is really a very small percentage of the overall growth it's expected in that fund an android basis and the big item when you rolled it all up and in terms of transportation funding is the governor's interest in funding the high speed rail project that's really what's driving the conversation is there a million yeah exactly and that's the big variable i think and then what is out of all of this as the governor's interest in having that being permanent funding source for that project but there is definitely potential for there to be some spillover of those funds that benefit local governments through transportation related project and housing projects to depending on how it all plays out so thank you better news than it would have been a year ago  okay so no actually required on those two items just in it's all informational no thank you for that information sure you're welcome okay all right well then this meeting is adjourned