when do you think we'll know for sure whether the school district will be able to draw from the rainy day reserve? >> we are aware of that march 15th deadline and we are in discussions with the school district. we're going on the assumption now that the school district will be able to withdraw from the reserve and if not, then we will make that determination as soon as we know. it will depend on exactly how much money they get from the state. >> will it be before march 15th that that determination's made. >> we will do our best estimate so they are aware before those pink slips have to go out. >> so, where do we have in terms of -- what's our balance in the rainy day reserve now? i was looking, maybe i missed it. >> we haven't gotten to it yet, it is on a subsequent page.

the budget stabilization reserve is our side by side reserve that was created dlu the financial policies through the board of supervisors and it was crafted so that we can continue to put away money in a reserve and be able to withdraw it a little more flexibly than a rainy day reserve allows, we cannot make changes to the rin nee day reserve without going to voters whereas this is locally sponsored and with two-thirds vote, we can make changes to the rules of this particular reserve. again, it augments the rainy day reserve, and its's a designated, mitigates some negative effects of down-turns or service requirements, 75 -- so, the deposit rules are that 75% of certain revenues including property transfer taxes above the average of the last five years are deposited

into this reserve, so if we have a very, very high year of property transfer tax, you hear the controller tell you year after year that these are volatile, we can't dountbacker count on them continuing, so 75% of that growth would be deposited into the stabilization reserve. withdrawals from the reserve are triggered in similar way as the rainy day reserve but they're spread over a three year horizon, we can withdraw up to one-third for each one of three consecutive years and the policy could be suspended for any given year by a two-thirds vote of the board, so here is the chart that you were looking for, supervisor farrell, in each of the years, we show what the balance is in the stabilization reserve, so you see that in the last three years, we have accumulated approximately 95 million dollars is projected, and then

you can also see the rainy day reserve, the amounts that are left, so what is left in the rainy day reserve from the economic stabilization fund is the 23 million, so the school district can withdraw 25% of this number. >> and based upon our five-year plan and so forth, is there any projection that we will add to the rainy day reserve? >> no. >> alright. >> so, as i said earlier, we have two incentive reserves and these are codified in the administrative code that up to 25% of departments year-end savings can be carried forward and to use the funding, the cost savings strategies are other one-time expenses, and in this instance, the controller can suspend the use of this reserve for these purposes if we determine na the city's

financial condition cannot support na. over the last number of years, the mayor's office has opted to use this reserve for a number of one-time uses including it and capital. and by year-end, we're anticipating about 19 million dollars will be left in this particular reserve to be used for next fiscal year one-time purposes. the recreation and park department is lucky enough to have an administrative code section, rather it's in the charter that allows them any excess revenue or expenditure savings can be carried forward within their own budget, again, to be used on one-time and we're anticipating about 7 million will remain in that particular reserve for recreation and park to be used next year.

so, now baselines, there's a certain -- these are all determined by the charter, are voter approved and over the years, the voters have required that the city set aside a certain amount of our general fund revenues for particular purposes, the largest one is for muni mta, both in the area of the transit services and parking and traffic, so you see that this is a percentage of what we call aggregate discretionary revenues, this is our revenue sources, taxes, does not include federal and tax [inaudible] and the way these work, supervisors, when they were established, we took a snapshot as to how much general fund money these

departments received during that year and we grow that amount based on the growth of these general fund revenues so in the current year for the municipal railway, we have approximately 154 million that is appropriated to them and an additional 58 million dollars for parking and traffic, similarly with the library, 53 million, children services, 115 and this particular baseline is the only one that we overfund that is we provide them with more dollars that is required by formula. the public education services baseline, we need to maintain the level of funding that was provided to the school during the years during that 6.7 million and then here are the amounts for the public education enrichment fund. so, taken together, all of these baselines amount to 450 million dollars of

discretionary funds. and then similar to those baselines, we have others that are specified to be certain percentages of certain taxes, so you have parking tax and property tax are the ones, so mta receives 80% of parking tax in lieu, and what that means is that the parking tax comes into the general fund and we give mta general fund money in the same dollar amount, so that amounts to 61 million dollars, similarly with the library, 2.5% of property tax, this is an additional 37 million, open space, 37 million, the children's fund of 44.7 million, the municipal

symphony, 2 million, and then the hotel tax as we discussed earlier, 88 million that is then budgeted, 56 million of that is budgeted in the general fund. >> so, the open space fund is getting an additional 37 million this year, yes, this year? >> it is getting 37 million, it is not an additional, each year, it gets the percentage of property tax, 2.5% of property tax, so as property tax grows, the open space fund is lucky enough to grow with our largest growing general fund tax. >> got it. supervisor avalos? >> just a question on that, so we have the open space property tax set aside, 2.5% at 37.3 million, is there anything that protects overall funding within the rec and park department, like there's no baseline that

protects the overall funding? >> they have the open space and they have the reserve where any money that is left at year-end from increased revenue or expenditure savings can be used the subsequent years so those are their two guarantees of certain kinds of funds. i might also add that the park and recreation fund is largely supported by their own fees so their general fund allocation, they do get a general fund allocation, but most of their revenue is taken from their fees. >> so, it works differently than say the children's fund and the baseline that goes along with the children's fund or that baseline protects funding in all departments and you can august lt with the children's fund, the rec and park doesn't have a baseline where you would augment with the open space? >> that's correct because the open space fund is separate

from their operating fund, so the percentage of property tax, the 2.5% goes into the open space fund and that is in addition to anything that the recreation and park department receives in their fees and in general fund allocation for their operating costs. they do use -- >> the open space fund is used for operating as well. >> i was going to say, so the open space fund is used to operate only those facilities that were funded by the open space fund. so, if a park opens up with open space, then the maintenance of that park, the gardeners associated with that park can be funded through the open space fund. okay, and then there's some other services, staffing requirements, these are expenditure baselines, these are requirements that the city spent its money on providing certain types of services, the city services, auditor gets

2/10 of 1% of the city's budget, that amounts to 12 million, the human services agency has a homeless care fund of 13.7 million and that was based on a certain level of funding for homeless services at the time that this was approved. the office of economic analysis and the controller's office has about 400 thousand dollars, the police minimum staffing requirements that was passed in the charter many, many years ago requires 1971 full duty officers, i might add that in this budget year and in this past year, the city has likely not met that requirement but with the staffing plan that the mayor submitted in his budget that was approved in the year for a two year, we are moving toward full compliance to the staffing requirement. similarly, the fire houses,

certain fire houses have to remain open and that has been met, a number of years ago, there was a treatment on demand ballot item that was approved by the voters but that was never funded to its fullest at the time and it continues not to be met, and the housing trust fund is the latest one and the proposal is to fund that one in next year's budget. and so that kind of completes the rules of baselines and set asides, we certainly can provide additional information to you or your offices or as you deliberate the budget, if you have questions about that, we carefully reviewed the amounts of money and the formulas, they're audited on an annual basis to be sure we're consistent with the requirements. >> thank you, colleagues, are there any questions at this time? okay, seeing none, thank you

very much. at this point, i would like to open up to public comment, any members of the public, seeing none, public comment is closed. colleagues, can we have a motion to continue this ie tome to a call to the chair, so moved, we can do that without opposition, so moved. mr. clerk, do we have any other announcements? >> that completes the agenda. >> thank you very much, we are adjourned. (meeting is adjourned).

>> good morning, everyone, and welcome to the san francisco board of supervisors budget and finance subcommittee meeting for wednesday, march 13th, 2013. my name is supervisor mark farrell. i will be chairing this committee. i am joined by supervisor eric mar and supervisor john avalos. i would like to thank the members of sfgtv who are covering this meeting, jennifer low and jessie larson and the clerk of this committee, victor young. mr. clerk, do we have any announcements? >> yes. please silence all cell phones and electronic devices. completed speaker cards and copies of any documents to be included as part of the file should be submitted to the clerk. items acted upon today will appear on the march 19, 2013 board of supervisors agenda unless otherwise stated. >> thank you. mr. clerk, can you please call item number 1? >> item number 1, resolution concurring with the controller's establishment of the consumer price index for 2013, and adjusting the access

line tax by the same rate. >> thank you. we have monique zamuda from the controller's office. >> good morning, members of the committee, monique zamuda deputy controller. consistent with the 911 fee requirements, the controller reviews on an annual basis, the consumer price index that allows us to set the fee based on the consumer price index that we have determined this past year to be 2.22%. and what is before you this morning is a resolution agreeing with that and authorizing us to increase the access line tax rate consistent with stpi adjustment. >> okay, thank you very much. colleagues, any questions for ms. zamuda? seeing none, we'd like to open

this up to public comment. any members of the public who wish to comment on item number 1, please step forward. good afternoon, budget subcommittee. ♪ you fell into a budget ring of fire the tax, it went it went all hire and it burns, burns, burns the ring of fire because your mind the taxes shine you walk the tax line because makes the tax shined you walk the line >> thank you, mr. paulson. (applause) >> if there are any other members of the public who wish to comment on item number 1, seeing none, public comment is closed. colleagues, do we have any discussion? can we have a motion to approve item number 1 to send it to the full board with recommendation? and we can do that without opposition. mr. clerk, can you please call item number 2?

>> item number 2, resolution authorizing the sheriff's department to retroactively accept and expend $599,894 in funds from the u.s. department of justice, office of justice programs, through the second chance act reentry program for adult offenders with co-occurring substance abuse and mental health disorders, for the keys to freedom program to increase public safety, and reduce recidivism among incarcerated and recently released women and transgendered adults in the city and county of san francisco; and waiving any indirect costs for the period of october 1, 2012, through september 30, 2014. >> thank you. and we have coner johnson, legislative aid for supervisor london breed whose item this is. mr. johnson? >> thank you. johnny cash medley this morning, that's great. supervisor breed is happy to support and accept and expend on behalf of the sheriff's department. this will allow them to collect about $600,000 from the federal department of justice to benefit the sheriff's keys to freedom program which serves women and transgendered adults in the city's jail system. and we have bri ma shorter chief financial officer here to discuss the [speaker not understood] with more specificity and answer any

questions you may have. so, thank you. ~ mahorter. >> good morning, supervisors. i'm the new cfo of the sheriff's department. this is my third week on the job, so, have mercy. the keys to freedom grant is a department of justice grant for $600,000, the term of the grant is two years, and we will be using it to fund a program called keys to freedom. the city doesn't have to provide any matching funds and the target population, as coner said, are women and transgender, people who are either incarcerated or have been released from incarceration into the community of san francisco. they are medium to high-risk offenders and they have dual diagnoses of both mental health disorders as well as drug addictions. we will be partnering with he will health right 360 which you might better know as walden house and the haight/ashbury free clinic.

both of these organizations are long term partners of both the san francisco sheriff's department, the department of public health, and the california department of corrections. the services that we will be providing to these women are first and foremost a needs base assessment which will be done through compass, which is the department of adult corrections or -- i'm sorry, adult probation's system which does a needs based assessment of inmates and identifies which services are most appropriately provided. based on that diagnosis, we will be providing services that [speaker not understood] management and getting to the roots of criminal thinking. the majority of the funds will be spent on three case managers as well as two supervisory case management positions both of which will be provided by health right 360 as well as a small portion of support for administrative staff in the sheriff's department. if you have any questions, i'd be happy to answer them. >> colleagues, any questions? okay, thank you very much.

we don't have a budget analyst report this time. so, this time like to open up to public comment. any members of the public who wish to comment on item number 2, please step forward. hello. ♪ city budget hard to eat city, i hold the lock gang you hold the freedom key open your heart to us i hold the lock and you hold the freedom key and someone's knocking at the door somebody's ringing the bell do me a favor, city open the door with this freedom key and let them in

>> thank you very much. any other members of the public that wish to comment or sing on item number 2? seeing none, public comment is closed. colleagues, once again, any discussion? like to make -- can we have a motion to send item number 2 forward with recommendation? so moved, we can do that without opposition. mr. clerk, can you please call item number 3? >> item number 3, resolution authorizing the recreation and park department to retroactively accept and expend a grant of up to $3,350,000 from the trust for public land for the design and construction of improvements to father alfred e. boeddeker park for the period of august 2012, through june 20, 2014. >> thank you. and we have abigail from our rec and park department. >> good afternoon, supervisors. my name is abigail ma her, i'm with the park and rec department. thank you for your review of the resolution for the accept and expend grant for the decker park. this grant from the chester public land also known as tpl

is supporting and will continue to support the improvements being made at boeddeker park and grant house. [speaker not understood] inkind professional services, project management, consultants, design, construction management, those types of things towards the boeddeker project. in addition to the in-kind portion of the grant, tpl is holding $646,000 construction contingency that could be spent on the project during construction. once the recreation and park department has authorization from the board of supervisors, then the rec/park project manager will request parts of this construction contingency if it's needed during the project. i'm happy to answer any additional questions. >> thanks very much. colleagues, any questions? okay. seeing none, thank you very much. at this point like to open up

to public comment for item number 3. and anyone from the public wish to comment? ♪ you're looking over a four-leaf clover land that you overlooked before and now that the item is on the budget floor i know you're gonna give it even more cause you're looking over a four-leaf budget clover for this land grant, too and you're looking over a four-leaf clover so remember to give it even more >> all right, thank you very much. any other members of the public that wish to comment on item number 3, please step forward. my name is rebecca evan son. i encourage you to accept this grant. when i was first appointed to the open space committee back in the '90s, the first event i attended was the original opening of this park.

it needs to be improved to serve the neighborhood, which is in dire need of green space. thank you. >> thank you very much. any other speakers? all right. seeing none, public comment is closed. i agree with that comment, this is going to be a great project. colleagues, we do have one technical amendment inserting dates into the last item of the title, august 13th, 2012 through march 3rd, 2014. like to make a motion to amend. >> second. >> we can do that without opposition. and take a motion to approve this item as amended, send it forward with full recommendation. >> second. >> we can do that without opposition. okay, mr. clerk, can we call items number 4 and 5 together? ~ >> item number 4, hearing to review the status of the america's cup organizing committee's efforts to raise $32 million from private sources to reimburse the city for a portion of the city's costs related to the america's cup, including an update from the controller on the acoc's financial position, what the city's potential liabilities are if the acoc fails to raise this sum, and what the city's options are for recovering any

outstanding fund-raising obligations, and will also consider the original determination of financial feasibility for the america's cup, and whether the city is still responsible for staging the event when the event organizers have not fulfilled their financial obligations. item number 5, hearing to review the status of the america's cup event authority's compliance with their commitments in the workforce development and local small business inclusion plan to comply with the san francisco's mandatory local hiring program and use union contractors for all construction and temporary installation work, and with the prevailing wage provisions in the san francisco administrative code. >> thank you very much, mr. clerk. this is a project i certainly have been involved with quite a bit on the america's cup board committee. he's they'rextion have been called by supervisor avalos. so, i will turn the mic over. >> thank you, chair farrell. and thank you, colleagues, for entertaining these two hearings.

these hearings are a status report on the fund-raising effort of the america's cup organizing committee as well as the status report on our business inclusion, small business inclusion plan, our plan for prevailing wage, and our plan for local hiring as part of the america's cup effort. back when he approved the plan last year, last march, there was a strong effort to make sure we were going to be meeting the needs of san francisco residents. we wanted to make sure that we have specific measurable outcomes that would show we're actually hiring local residents and we're bringing our businesses into what will be benefiting as well from the work of putting on the america's cup and the america's cup tourism. when the america's cup first came to me in my office in 2010, it was probably september 2010, we were asked if we would just sign on to an early, early

notice that we were approving the project. i could not do that at the time. i felt i was actually signing onto a blank page and i needed to have more information, more detail. i think the idea of the america's cup and bringing events like this to san francisco is god and worthy, but we have to make sure we are doing our due diligence, that we are minimizing what the overall impact would be on our environment, on our bottom line, and what it means for the city to be putting this on. ~ good we have to answer a lot of questions. and i think the public process we've had about putting on the event here in this committee, on other committees of the board of supervisors, and other agencies around the bay that permit a lot of the efforts of the project need to be covered and need to be addressed. and that's where -- the public process is important to show we're doing our due diligence and creating in a transparent way for the city. i actually have heard the

reports from our departments, office of economic workforce development, olse, office of labor standards enforcement, that we actually have not been living up to our commitments for the america's cup, especially around small business inclusion, especially around prevailing wage and local hire. i think that is something that is significant. we come here, we have discussions in our committees. we are told that certain things are going to happen and then when it comes to actually implementing a program that's actually going to show how we're going to support local residents, that that is not actually performed. and, so, i see a hearing like this today is to make sure that we can actually right the ship, that we actually move forward and actually do what we say we're going to be doing. we actually have to look at applying certain measures and penalties [speaker not understood]. we'll have a discussion about that here today as well. on the effort around fund-raising for the organizing committee for the event,

originally there is a commitment that the organizing committee would endeavor to raise $32 million that would offset what the city would put in to support the project. we know the organizing committeev, for many reasons that will be discussed today, has not actually lived up to that promise. we've been told now and i would agree that our event of the america's cup is not as big as we expected it to be so our costs will be somewhat less. that could actually a leave -- alleviate the pressure to raise $22 million. what i'm concerned about today is since we've only raised maybe $13 million, i'll get a report from the controller what's been raised to date, we actually don't have to raise that much more money because we're going to use the revenue from the overall economic impact from the america's cup to actually pay for the effort that will