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

BOARD OF APPEALS Budget Presentation FY17 & FY18

OVERVIEW City departments must submit two-year budget proposals by February 22  Required by San Francisco Administrative Code Chapter 3.3(a) Before the submittal deadline, the Board must adopt budgets for Fiscal Years (FYs) 2016-17 & 2017-18 This presentation provides:  An overview of the Board’s budget structure  An update on the current year’s budget (FY16)  Recommendations for FY17 & FY18 budgets  Budget detail for FY17 & FY18 2

OVERVIEW – REVENUE BUDGET Surcharges = 95% of budget  Collected on new and renewed permits  Rates based on percentage of cases originating from each underlying department and anticipated permit application volume Filing Fees 5%  Rates analyzed annually and adjusted if needed  Controller may increase rates by CPI  Adjustment beyond CPI requires legislation Surcharges 95% Filing Fees = 5% of budget  Collected by Board when appeals are filed  Amount collected fluctuates each year based on types of appeals filed and overall volume 3

OVERVIEW – EXPENDITURE BUDGET Over two-thirds (68%) of the Board’s expenditure budget covers salary & fringe benefit expenses. Services provided by other departments comprise the next largest portion of the budget (20%). Expenditures by Category The remainder of the budget consists of: Materials & Supplies 1%  Specialized Services (7%) Infrastructure 4%  Neighborhood notification, interpreter Salary & Fringe & delivery services 68%  Infrastructure (4%) Specialized Services  Office & equipment rental, computer 7% & telephone maintenance  Materials & Supplies (1%) Services of  Paper & other office supplies Other Departments 20% 4

CURRENT FY UPDATE YEAR-END PROJECTION – APPEALS Projected appeal volume for FY16 is coming in just under the 10 year average of 180 appeals per year. Appeal Volume 300 250 200 150 100 50 0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Actual Average 5

CURRENT FY UPDATE YEAR-END PROJECTION – REVENUE Based on six month actuals, the Board is expected to end the year with a surplus in both revenue streams.  Filing fee revenue surplus ~ 47%  Mainly from fees paid for 35 unanticipated appeals of sign permit denials  Surcharge revenue surplus ~ 11.5%  Resulting from the actual number of permit applications coming in higher than projected Current FY Six Month Year End Projected Revenue Budget Actuals Projection Variance Filing Fees 46,037 44,350 67,700 21,663 Surcharges 882,567 492,115 984,230 101,663 Total 928,604 536,465 1,051,930 123,326 6

CURRENT FY UPDATE YEAR-END PROJECTION – EXPENDITURES Based on midyear spending, year-end expenditure savings of $67,469 are projected:  Reduced personnel expenses due to a staff vacancies  SFGovTV expenses expected to come in below projections  Savings also expected in non-personnel and infrastructure costs  Materials & Supplies likely to be fully expended due to postage needed for neighborhood notification mailings Current FY Six Month Year End Projected Expenditures Budget Actuals Projection Variance Salaries & Fringe Benefits 631,115 293,746 612,956 (18,159) Services of Other Departments 186,293 *37,433 168,098 (18,195) Specialized Services 65,992 17,914 39,410 (26,582) Infrastructure 35,806 **26,494 31,273 (4,533) Materials & Supplies 9,398 6,993 9,398 0 Total 928,604 382,580 861,135 (67,469) *Does not include second quarter City Attorney billing. **The Board’s rent is fully paid in the first half of the year. 7

CURRENT FY UPDATE YEAR-END PROJECTION – VARIANCE Based on year-to-date revenue and expenditure information, the Board is expected to end the current fiscal year with a surplus of approximately $190,795. Current FY Year End Projected Variance Budget Projection Variance Total Revenue 928,604 1,051,930 123,326 Total Expenditures 928,604 861,135 (67,469) Total [Surplus revenue and 190,795 expenditure savings] 8

FY17 & FY18 BUDGETS REVENUE Surcharge rates are designed to generate sufficient revenue to cover operating expenses in both FYs. If existing surcharge rates are deemed insufficient to cover expenses, they can be adjusted.  Controller can adjust by CPI ( FY17 = 3.18% ; FY18 = 2.50%)  Legislation required if an increase beyond CPI is needed Small increases are proposed in projected surcharge revenue in order to offset increases in expenditures in FY17 & FY18 without increasing surcharge rates.  Warranted based on prior year surpluses and current year projections Given the small portion of the budget that is comprised of filing fees, no change is projected in this revenue stream. 9

FY17 & FY18 BUDGETS EXPENDITURES Minor increases in FY17 & FY18  FY17 = 3.2% ($29,561)  FY18 = 2.4% ($23,434) Increases address:  Mandatory increases in salary & fringe benefits  Slight increase in IT infrastructure costs  Board’s share of Citywide financial systems upgrade Expenditure Current Variance Variance FY17 FY18 Budget FY16 v. FY17 v. Proposed Proposed Variances* (FY16) FY17 FY18 Salaries & Fringe Benefits 631,115 659,121 28,006 682,555 23,434 Services of Other 187,541 1,248 187,541 0 186,293 Departments Specialized Services 65,992 65,992 0 65,992 0 Infrastructure 35,806 36,113 307 36,113 0 Materials & Supplies 9,398 9,398 0 9,398 0 Total 928,604 958,165 29,561 981,599 23,434 *SEE APPENDIX A.2 FOR EXPENDITURE DETAIL. 10

FY17 & FY18 BUDGETS RECOMMENDATIONS Increase surcharge revenue projections in both years to cover mandatory increases in expenditures. Work with Controller and Mayor’s Office to determine whether projected Citywide permit application volume warrants a surcharge rate adjustment requiring legislative action. Continue to closely manage operating expenses. 11

APPENDIX Note: as the budget process progresses some of the figures in the attached budget detail may change as fringe benefit rates are finalized. The FY18 budget will be reconsidered during next year’s budget process. 12

APPENDIX A.1 BUDGET DETAIL - REVENUE Current FY Projected Year-End FY17 Change FY18 Change REVENUE Budget Actuals Proposed from FY16 Proposed from FY17 FILING FEES 46,037 0 46,037 0 46,037 67,700 SURCHARGES 29,561 23,434 882,567 984,230 912,128 935,562 TOTAL REVENUE 958,165 29,561 981,599 23,434 928,604 1,051,930 13

APPENDIX A.2 BUDGET DETAIL – EXPENDITURES: PERSONNEL FY17 Change FY18 Change Current FY SALARIES & FRINGE BENEFITS Proposed from FY16 Proposed from FY17 Budget Budget Budget Budget Budget PERMANENT SALARIES 424,721 440,306 15,585 449,565 9,259 PREMIUM PAY 2,704 2,704 0 2,704 0 8,048 8,323 275 8,323 0 OVERTIME RETIREMENT 76,659 81,196 4,537 88,042 6,846 SOCIAL SECURITY 31,319 32,177 858 32,679 502 90,113 96,510 6,397 102,691 6,181 HEALTH SERVICE DENTAL COVERAGE 6,828 7,169 341 7,528 359 UNEMPLOYMENT INSURANCE 1,175 1,218 43 1,243 25 OTHER FRINGE BENEFITS (12,952) (12,982) (30) (12,720) 262 2,000 2,000 0 2,000 0 TRAINING EMPLOYEE EXPENSES 500 500 0 500 0 SUBTOTAL 631,115 659,121 28,006 682,555 23,434 14

APPENDIX A.2 BUDGET DETAIL – EXPENDITURES: WORK ORDERS AND SPECIALIZED SERVICES FY17 Change FY18 Change Current FY SERVICES OF OTHER DEPARTMENTS Proposed from FY16 Proposed from FY17 Budget Budget Budget Budget Budget CITY ATTORNEY 130,000 130,000 130,000 0 0 DEPT. OF TECHNOLOGY 2,000 2,000 2,000 0 0 SFGOVTV 52,661 52,661 0 52,661 0 REPRODUCTION 51 51 51 0 0 CONTROLLER FINANCIAL SYS. REPLACEMENT 1,581 2,829 1,248 2,829 0 SUBTOTAL 186,293 187,541 187,541 1,248 0 FY17 Change FY18 Change Current FY SPECIALIZED SERVICES Proposed from FY16 Proposed from FY17 Budget Budget Budget Budget Budget PROFESSIONAL & SPECIALIZED SERVICES 65,992 65,992 0 65,992 0 SUBTOTAL 65,992 65,992 0 65,992 0 15

APPENDIX A.2 BUDGET DETAIL – EXPENDITURES: INFRASTRUCTURE AND MATERIALS & SUPPLIES FY17 Change FY18 Change Current FY INFRASTRUCTURE Proposed from FY16 Proposed from FY17 Budget Budget Budget Budget Budget PHOTOCOPIER/SCANNER RENTAL 5,700 5,700 5,700 0 0 COMPUTER SUPPORT 6,935 7,239 304 7,239 0 TELEPHONE SUPPORT 659 662 3 662 0 RENT 22,512 22,512 0 22,512 0 SUBTOTAL 35,806 36,113 307 36,113 0 FY17 Change FY18 Change Current FY MATERIALS & SUPPLIES Proposed from FY16 Proposed from FY17 Budget Budget Budget Budget Budget 9,398 9,398 0 9,398 0 MATERIALS & SUPPLIES SUBTOTAL 9,398 9,398 0 9,398 0 16

APPENDIX A.2 BUDGET DETAIL – EXPENDITURES: TOTALS FY17 Change FY18 Change Current FY EXPENDITURES Proposed from FY16 Proposed from FY17 Budget Budget Budget Budget Budget SALARIES & FRINGE BENEFITS 631,115 659,121 28,006 682,555 23,434 SERVICES OF OTHER DEPARTMENTS 186,293 187,541 187,541 1,248 0 SPECIALIZED SERVICES 65,992 65,992 0 65,992 0 INFRASTRUCTURE 35,806 36,113 307 36,113 0 MATERIALS & SUPPLIES 9,398 9,398 0 9,398 0 TOTAL EXPENDITURES 928,604 958,165 29,561 981,599 23,434 17