just on the citywide side not related to the city departments they've separated it out into the two groups of activities that's a good overview >> so let me just try to summarize this. we've gone overall for the general fund we've talked about the revenue line items and go department budgets as to summarize those which i'm i'm sure we'll get to >> we're trying to hit highlights but from the toup top to the bottom the executive

summary has the fairs table which ties into the schedules and ends up with our ending projection at the end of the page. >> thanks. got it >> so all those interests are departments that either will or may require supplemental appropriations to get through the current budget this is our summary of the mark. as michelle mentioned both the sheriff's department gave some modest overspend and work ordered shortages in the city attorney's office office we say may in both cases the projected shaufldz on the side is with the departments may have to manage

so we'll be tracking that with the mayor's office and working with the departments trying to prevent the need to come back to the board and we're modestly optimistic and they can pull their spending police vehicle back in line. we have a number of departments 3 the energy management and fire and a shelving will have to reappropriated their savings to bring those two accounts into balance. this is a requirement given legislation passed by this board a couple of years ago it must be be within this over time and those are the 3 departments that may require supplementals. part of the cause within foyer it's really the airport and in both cases there's a

relationship between the overtime and the departments overspending that's not the sole driver >> is it the anticipation if you look at the departmental budgets as a whole to live within their means. >> this is simply a reappropriation of the fund you've looked. if really and this is for several different reasons the human agency after the budget was adopted by these mayor and board the state changed the way i s sf gets paid for they

shifted $20 million of expenses that were going by the state to local government and gave us $20 million to pay for it so the city has $20 million more and that will require an appropriation. in the planning department their rover more fees than expenses and has a fee in the department they therefore need to refund fees or increase spending so you'll likely see a fee back that is included in increases budget. this is our general practice with those reports. we take into account those supplementals and this report assumes the ending balances assumes approval of the rent

stabilization supplemental that's preponderance of the evidence in this committee for four and a half million dollars >> that's itself full amount. >> that's pending at the moment. so the report includes at the end is the appendix and so this slide is summarizing some of those i lick this table bus it's complicated. it's really showing you a picture in the two years the current fiscal year and the current year you've previously adapted the budget what our status is of the reserves and where we started in 2014 - 2015 and our current project of the deposits to the reserves. the current projected withdrawal given the adapted budget and where we expect to end the year and next year's budget what

we've projected for deposits and what's been previously approved by the mayor and the adapted budget last year for 2014 - 2015 and so those are not auto of the reserves the city maintenance but it starts with the general reserve and we started with the $4. million plus the four and a half million dollars wraufl and those are from the nonprofit rents and supplemental pending. we will then expect to end with 41 million and an additional reserve for 2014 - 2015 and we will end that receive with 51 million but budget savings and it captures a portion of the admin fund it catches department

savings that are reappropriated by the mayor and board for one time purposes in the subsequential year budget we ended with 24 east side 24 point plus million we expect a $21 million current reserve. next year's review e revenue we projected of 16.4 million >> to be clear on that line item they were approved. >> those are board approved withdrawals. >> we do know with or about the current projected monies. >> you have a new 2014 - 2015 to revises that withdrawal so

our typical practice will more fully you'll draw from that reserve for different purposes. recreation and parks department this catches it catches a portion of the rec and park department and there's no deposit expected in the counter year and there are mayor approved withdrawals in this year and next and supervisor avalos there are two pieces of the rainy day reserve the first is what we call the rainy day. we started with $23.3 million in that reserve and expecting a $3 million deposit. the where had has approved an 8 point plus million dollars we'll

end the current year with 25 point plus million and another approved balance of 16.4 million. the rainy day one 7, 8, 9 reserve is 25 allocation we started the year with 3, 1.5 million is our estimation of the deposit required in the current year and the current year budget has withdrawn 31.5. this this period we'll expect to end with a $30 million balance for that reserve. and then lastly the budget stabilization reserve this is the supplement the rainy day reserve this is unchanged from

the discussion we had at a budget with 26 million given transfer tax growth which is one of the forebodes to that reserve and 16.7 million and budget year deposits of 14.4 million are expected although this will change as our transfer tax gets updated way we will have $38 million at the end. this is the salary reserve we use inform account for related costs that are not budget in departments but are distributed to departments over the course of the year. so as also to note those are cost projections and we had a

more author budget but there are uncertainty remaining and the growth continues to out strip our expectations so how long that will last is a key question as we plan our budget for the next year's. our focus roll over the next 6 months is heavily on transfer taxes and payroll taxed. we feel like new information will help us to refine the projects. there's uncertainty around the revenue streams one is the affordable health care and it's impacts are you may answer the question i didn't. and at the fire department those projects continue to assume as did the budget payment for $6 million in prior year ambulance fees that flows from

the federal government. that's still mirky >> is there an anticipated time we'll know for certain in this fiscal year or the next or the next is everyone operating it will be gray for quite a while here. >> this is not for us but for all who are operating in california. the amount of uncertainty will continue through the budget year. we'll feel it more and more but it's good morning to be mirky on the revenue and expense side for sometime. we have a daily rate starched that's something we've been waiting for but etc., but what kinds of costs we'll have to buy

outside of our network and it's the major revenue and uncertainty looking ahead for the next year's >> you're thinking several years of uncertainty it's years of - >> we'll, of course, know more and more but at this time it's narrowing. and, of course, the promises are based on our assumptions of that departments spending which could change and the appropriation approval so the extent of the appropriations are required spending issues or for other policy goals it changes those numbers. just to quickly hit a couple of other funds in the city just to note we have a number of special funds or enterprise funds that are comfortably. that includes the airport the

clean water enterprise of the puc and the mta is experiencing good revenue from things that is positive for the mta. did department of building inspection and revenue continues to out strip it's expenses and it should have a high available balance which we'll work with the mayor's office to plan for this. this is the second year in a row the dbi has more money and as michelle mentioned the property taxes are also seeing improvements tied to the property tax improvement like the children's fund and the library fund are seeing good news. the courthouse construction fund continues to worsen but we're tracking the court filing fees

use to pay for the debt service the courthouse building cross the street and that fund is in a twist position were trying to refinance that debt but it requires approval from the state and we'll be working on this issue but it's a larger problem for us. the deficit is up to approximately $7 million. and then big uncertainty is the hetch hetchy in the current year. it's really heavily depend on on the drought. we sell surplus water when they have it but when they don't have enough it relates in having to buy power on the open market and

there's expenses. to get a magnitude of expense we're assuming drought conditions between 5 and a $15 million challenge of hetch hetchy in the current year we have the balance to cover that but it's a wolg picture for hetch hetchy we'll continue to track that in a 9 month period. just quickly in closing that is improved current year news will help to help with the shortfall ahead that speaks to the 9 months report if we see 25 percent improvement that flows to the reserves. we have two key reports coming up with the mayor's office and they w will have an up to date

and we'll issue jointly in march and we'll have publication in earlier may. our poise if you would i'm going to the mayor's office to talk about what this means for the current projections >> thanks. >> good afternoon, supervisors i'm melissa the updated deficit as you recall when kate reported to you earlier this month i said the expected deficit is $108 million in 2015 - 2016 so take the additional good news this number is 63 million

dollars and we're going to state that with our past practice is splitting that over two years of $31 million to bring it down to 69.4. and so i want to point out a couple of uncertainties ben covered most of them. so i think the biggest one is the open you know the areas with open and we have not assumed the costs and benefit costs we're waiting to hear from kaiser to know what those will be and, of course, the economy we're projecting a down turn in case something happens and also as the controller mentioned there are a potential for the

earthquake prelims and we're not actually assuming any supplementals but to wait until they've gone through the board process and take the money not to budget so for right now the $4.5 million if this passes the board it will reduce the 63 million dollars. the last thing that was mentioned we're working closely with the puc with the hetch hetchy power. i'm open for questions >> so nothing on the rim fire then that regards the puc at this point. >> no impacts at this time. >> and the difference between this is all general fund. >> right. >> and is difference on the table that mr. ross field poejd.

>> in the 2014 - 2015 we assumed 11.6 then we had updated news there's 141.5 now, it's going up to 209.8 so the difference is we have available. >> okay. >> we didn't mention when was assumed. >> great okay. thanks. >> and lastly in terms of the labor contract that's a big unknown but the 28 contracts up. >> 26. >> okay. so we talk about the 81 increase of $20 million this

is a for the remaining 26 that is correct. >> yes. $21 million general fund. >> okay thank you. supervisor mar >> how does the shortfall compare in the last couple of years. >> it was upwards of 75 million and i can get you a slide for budget instructions it shows the historical deficit diverse me one minute. in the intern do you have any other questions >> speakless (laughter). >> so this give us a sense of

the past deficits at the time of the budget deficits and the mayors toward so 2012 it was 80 million and another bad year of 5 hundred million we're in a much better place the labor issue is a big issue and that's our largest down side 20 million we gave 9 periods of time so we're concerned about that increasing the deficit. >> thank you. >> thank you. >> okay done with presentations thank you, everyone who presented. open this up for public comment if there's anyone who wants to comment on this item combed come

down seeing none, public comment is closed. can i have a motion to file without objection >> madam clerk, call item 6 please. item 6 is the hearing to consider the annual deposition of the 2014 - 2015 and for the board of supervisors 2015 - 2016 and we have a report >> hello angela the clerk of the board here to report on the 2014 - 2015 and 2015 - 2016 budget which we provide. i'll industry the changes i proposed for 2014 - 2015 and 2015 - 2016 a. i'm here today with the finance deputy. i'd like to express gratitude to

my colleagues. we have 29.9 million. that, too depicts it by allocation. it remains constant unless the that sunshine ordinances asked for a change. in the previous years the local commission spends to spend their prior funding so the proposal reflects no addition. since we've reviewed those stems i'll not go into county jail, however, slides 12 and 13 are reference materials. slide 3 shows the proposed allocation for each division for fiscal year 2014 - 2015. this reptsz a similar allocation

and the proposed budget is approximately 5 hundred thousand more than in the current budget. we begin our process based on the current year with adjustments for annual changes and removal of one time expenses the the department 2014 - 2015 is 13 million plus. the increase is attributable to citywide benefit costs and salaries. the proposed budget 2014 - 2015 is compromised of one hundred and 90 thousand gross dmrid the departments parole like staffing and the membership is the maintenance and minor technology needs. and mislead 4 represents the

detail. as i stated the increases is amazing to one hundred and 19 thousand in 2014 - 2015 and one time maintenance equipment is for the reduced departmental changes about decline to one hundred and 31 thousand, however, this is a place holder in 57 and don't have the full scope and detail as of yet. before monday evening to the line he means this is the appeals as you know they've peaked in fiscal year 2014 - 2015. as the economy includes the number of appeals have been declining to more normal levels, however, with the upswing of the real estate that is assumed to

continue into 2014 - 2015 we'll have the revenues to dollars that i $100,000 and to two hundred and 9 seven years for fiscal year 2014 - 2015 and 2015 - 2016. this will decrease the departments need and item 5 is the line item for our staffing. the department is submitting an i t administrator position to better serve the departments modernization serve. notably to up grad the online appeal filing on the other hand, and credit card acceptance or sense we are changing it from account 2 to 3 the position has taken on an expanded role for the auditing functions within the department.

we're substituting downward one senior clerk typist position. the net budget effect is only a cost of $9,000. this reflects the duties and responsibilities of the position. i work closely with our h.r. dependent on those reclassification. i'm proposing an increase in premium pay for the bilingual pay and anticipated increases for legislative assistant. both are mandated in the memoranda. and in addition the department is changing the adjustment for the legislature aids and this adjustment increases the budget by approximately 57 thousand. so slide 6.

the budget and legislative analyst budget changes. the current contract with the budget office was entered into on january and the department award a $2 million per analyst budget contract for 4 year terms with options to renew every 4 years. the language is for cost of living adjustment so the contractor any request a change in the billing arrangements and the anniversary date of the contract. and that the city in it's full discretion me grant the there 83 and it maybe paragraphed by the board of supervisors. we requested a cola of 3.5

percent though it's not included in our budget presentation at this time but i'll introduce a motion to reflect this request and we'll amended the request to amend it by june. to our memberships. item 7 slide 7 is our memberships and during the current year i'm sure you're aware of the county race it's membership dues from 1 plus to one hundred and 60 thousands. they have been stable since 23408 and c sack members voted to raise those dues. a formula was based on the county population and their budgets and placed county in dues