have been prioritized through pr d and we're coming to you early in the process of the process but we recommend you keep our options open >> mr. city attorney any other - >> did that city attorney john. in terms of your options going forward. basically, the port came to you with a term sheet that represents a package deal that's on preliminaryly negotiated they're coming to you with a package the parties sat down and fingered the process. i don't think it make sense preservedly to split it in a half because the port is coming to you with a term sheet whether

we implores the term sheet or not with reservations with reflected that you can reflect in the resolution rather than a piece of it we support could he pieces of it or we don't implored the term sheet because we don't feel comfortable with one of the terms. whatever you do the port can go forward and decide how to negotiate with pg&e going forward and pg&e may or may not reach an agreement and ultimately it will come back to the board to decide the whether to approve the final agreement. so i don't think you - one of our options is enclosures the

term sheet you can express our concerns in adapting the resolution >> okay that have we've spent 45 minutes on this; right? and i'm not sure if i rather just have the port come back with the negotiations that's more or less final but, you know, i've actually feel - expressing my discomfort in a resolution i don't you know, i understand the reason to do it but can't think of who's really going to care but i think i'd rather voted down and that's not necessarily comblourg of not

comblourg >> the southern is over the third past are part of this around the recouping of the fencing or paying for it. >> yeah. i think that's still up in the air. and i also, you know, by comblourg it there could be i f d use but not saying there should or not and what if i f d should be used for other purposes so you know, you know, this to choose there are other things we're going to be dividing this pier 70 there's open space and building structures and transportation other things that are useful so

i think i'd rather have pg&e pay for this and not increase our rates by i don't have control over that. but with this item making it, you know, saying what i feel should happen but the hoe down yard i feel uncomfortable with we don't know what the outcome is for sale and how that exactly is going to be zoned in the future. i understand the benefits for that eyeing precedes for our pushz projects but i see what's going to result is that, you know, the private side is going to have, you know, major benefits that are unequal to the public side. i understand that's the private side it will allow there to be

trickle effects down to the people of san francisco >> okay supervisor mar. >> i want to say that i'm supportive of the concerns that supervisor avalos is raising pr the jae gentleman gave us options. i this thing are part of it we're all supportive of and the third part of the switch part is of major concern. we can support the term sheet with the terms of the switchyard and continue this to allow mr. benson and others to address the concerns. i'm wondering how we can move forward with more issues to have those terms addressed >> can we move 80 this item

forward this is a term sheet subject to a final contract. >> yeah. >> and obviously with a statement if it comes back we'll determine it in the future this committee may look at this unfavorably and we'll have to come back whenever this term sheet is negotiated. >> right and the ultimately the resolution is essentially advisory to the board. the port feels comfort with the terms at this point go forward and do your thing. one option that might resolve the concerns supervisors is to say in the resolution the board is parishly imploring the term

sheet and i've never i haven't seen that done in a term sheet resolution there's no legal prohibition on your discussion today >> mr. benson. >> i've been talking to mr. smith are i want to express at the staff level we felt the proposal was meant to be a backstop the first effort is to get the funding and the second it the budget analyst report that and only then the i f d what have the kind of improvements that the board

wants to have available to it but to have the resolution to urge the port to eliminate the i f d screening from the final agreement that comes forward. we're electrotrying to come up with the financing if that's of interest to you we'll welcome the amendments to the resolution >> a thanks mr. benson. >> i don't think at this point, i'm ready to have language to put in the resolution and i'm wondering if we forward it to the full board without recommendations and work on the lapsing that can be added i'll be okay with that.

tights a lot of work my office is busy to spend time doing that but that's an approach i feel more comfortable with. but again, if we can provide in the resolution some direction and that can provide sentiments take the artist and figure out how to go through the negotiations i could be more comfortable with that >> so we had a 13 before the next meeting. >> come in on wants day and work on that. >> so we could let's say we can take a motion to forward it to the full board without recommendations and work on the language to amend the resolution. >> first of all, can i have a motion to adapt the amendments

with the analysis recommendations. now second without objection and the amendment to the full board without objection >> all right. madam clerk, please call item number 5. >> item 5 is the up-to-date from the controller's office

>> after that supervisors ben the controller. we're here to talk about the six months budget status report those reports are issued every 3 months to awe price you thought year in which we're in. so at the highest copies of the report have been provided to your office and there are copies available to the public on the website. this speaks of the funds of the city the focus is generally on the fund which make ups our budget. we talk about the highlights it continues to be another positive news report continuing the trend over the last several years we

project that the ending balance available in the general fund will be approximately $208 million. our practice is to stack the balance at the end of one year and apply it to the subsequent years. the $208 million represents the two or $3 million improvement from the mayors balance projection and the balance you previously appropriated in the last two year's budget approximately a 63 million dollars change. and the mayor's office can talk about the changes this deficit changes in the year ahead. the improvement is driven on both the revenue and expense

side of the revenue this is driven by property tax and hotel tax and michelle can talk about that in a minute. on the savings side open the department spending side we see net good news in health and those are four pieces of newspapers property and health are the drivers of the good news. significantly when we talk about the budget plan the revenue growth has pushed us over the rainy day threshold. this is a reminder that the voters have adapted and if revenue grows by more than 5 percent the values over that 5 percent value 50 percent are in the reserve which we call the

rainy day reserve and an additional 25 percent above the 50 percent line can be spent on one time uses and that's available for the mayor and staff effectively. this is a significant occurrence. this is the first time we've been in rainy day reserve. we continue to see the revenue improvement beyond the revenues we're talking about and 25 percent will be available to solve the deficits we're planning around and the good news will flow to start against the next downturn and 24 percent low be earmarked for purposes >> when you talk about the

budget the shortfall is an annual project not 6 months. >> correct this is true throughout our presentation we're not talking about our actuals through the 6 months we're talking about our actuals through 6 months and our projections that's new information and a correct. >> so just 25 percent would be available for the general fund after the deposits of the rainy day reserve correct? >> you have here on the next page on page 3 what's projected. >> uh-huh. >> so 17 percent will go into the rainy die reserves you have - >> no. >> are there other reserves technically we have rainy day

adequately reserve where the 50 reserves but 50 percent end up in the stabilization reserve and 50 percent in the rainy day one time reserve on the other hand, and those occur for 75 percent. i'll talk about the reserve later and we will talk about the two pieces >> so the 75 percent is divided up next year as well as the budget stabilization reserve and we'll have left over money foyer another city purposes. >> the 3 interact and maybe it

will be easier at the end of the day we'll walk through the decision. >> if it's okay go supervisors i'll i'm going to turn it over to michelle who can run you throw the spending picture. >> morning. so this is a little bit more detail of the revenue sources. ben mentioned it's prototyping property and hotel tax. the property tax is a fancy way of saying the sears is enrolling things at the faster rate and hotel tax is an amazing story of incredibly occupancy rates and on top of that it impresses us what people are paying to stay

at hotels. those two items are making up most of the revenue increase. this is the third thing is the transfer tax we're not projecting to be over but we have over thirty million for the year. if you look at the bumps in december we have $67 million in december and that's end out but at this point we're not projecting that the city is over budget and we'll hopefully have more information and update you on that that's a day to day number that can change. ass i'm sure you're aware of and ben touched on that the voter improved take a portion of the revenue growth and send it off

to voter uses like libraries and public education and part of parking tax it goes to the mta more. and the requirements is about $2.5 million. so as you kind of get into the department land is a city as a whole like the department of human health and that's monthly expenditure savings like aids and a contracts >> could you go back to the slide before sorry. we start off on the top the e dr number california you explain that between that and the general fund >> yes. this is the

discretionary revenue monthly the beverages that come from the federal government and the state government we don't consider them discretionary. we consider charges for services are not discretionary they're providing a service to someone we don't have a choice how to spend that money. so the general fund number is 3.9 billion we we don't have a choice how to spend the revenue. so >> to be clear the san francisco voters and we've established the policies where we're going to spend it. >> for the departments to have a slice of property tax and the discretionary revenue with the library they do really, really well in times like this. >> so did variance on the

overall variance is 40.5 so i assume it's basically as we kind of go down the list there's what is it 8 flap has we don't have any say over what happens to that. >> exactly and the biggest part is the realignment revenue so the kuvents give us money and we don't have a choice to spend it. >> and again so the summary of this one slide is based on the 40.5 of aggregate discretionary 2 and a half of that is taken off. >> yes, so kind of in the revenue departments we're

talking about the human services agencies their surplus coming from big savings in salary and aid payments. and also with the department of public health some revenue particularly the hospitals and some savings there as well coming in us. one other thing i want to talk about the economic and workforce development having a shortfall that's related entirely to the america's cup project and there's a lot to talk about but to explain what this number is it's strictly what we're projecting budget versus actual just for the current year not talking about what happens at the outside of the project like the port and just the general

fund in this year alone we're saying it's a $5. million shortfall running off receiveables and the funds of the event being smaller than anticipated and some saves and 5.3 short compared to you our budget >> any color on any other departments. >> the fire department has a shortfall in ambulance revenue and that's related to a number of things. all kinds of kektd but i will get more information. we're having fewer travesties that generates revenue than anticipated. in particularly picking up the

reimbursed actively >> okay. >> so the other shortfall city attorney's this is the change of the redevelopment agency or the occ infrastructure and investment how much legal support they'll need they won't recovery as much as hoped. also some state board and prisoner revenue we're not expecting and a little bit of over churches in a couple of areas those are 3 areas that are highland >> supervisor mar. >> i want to ask you the america's cup causing the

deficit for o e w did did that for about in the expenses from the port in the totaled up to date. >> this is the general if you happened view so if the port has expenses that are sitting in its operating funds those are not including those this includes the port is going to bill the supply for that combudz includes the operation fund but not the budget analyst about $5.6 million those are not part of this they're not included in the general fund not included here. >> okay. so before you leave f that slide quickly could you there's a

combined $56 million could you rationalize that with the 40.5 which is 2 and a half and how it relates >> so that's a very good question. let me think of the best way to say that. the $56.48 and a half of revenue 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