you. >> thank you for letting us knows. >> commissioners you're moving ear head do you have a - >> i'm just curious that someone didn't have to say 8 hundred hundred thousand dollars doesn't have to be spent. >> we can if we like. >> that's why we're not voting but supportive of this money to be spent to rad if i and correct this area in this part of town we don't have to vote that's basically, what we're saying. >> would you like to vote on it. >> maybe you can say it in a way to articulate. >> i just find it curious. >> john from the city attorney's office the reason you took an action previously in the fall because the way the charter

it written a amendment to the building code to allow the fund for the work that is effected here this was an amendment to the building code the chapter says wherever the code are amended the building inspection need to hold a hearing you held a hearing and approved the use of this fund to address the situation the earlier estimation was not accurate because of the conditions added to the cost of it so there's no new need to amend the building code again, this is brought as an informational item not no requirement that you hold a hearing no requirement that you take an action you're free to if

you want but it would be purposely purposely siresy. >> my public comment on this item. >> i need a couple of hundreds myself. >> possible action on the budget of the building inspection for fiscal year 2015-

2016 and 2016-2017. >> thank you. >> good afternoon deputy director of dbi in our packet that you received last week the proposed 2015- 2016, 2012 and i'd like to talk about the budget and some of the highlights and to kind of

follow-up so let's get started first of all similar to prior years we have to submit a two year bucket we've submitted a budget for 2015- 2016 as well as 2016-2017 and last year when we submitted our 2014-2015 budget that means the requested the proposed budget for 2015- 2016 has been approved so this first floor is improved last year by the board of supervisors backpacks that our next two years is bans the 2015- 2016 that was approved last year so and our budget guidelines they

were instructed to maintain their general fund because of comfortable that prior years the general departments have to make up 20 percent so 2015- 2016 there are no reductions and in 82016-2017 on a one percent reduction we don't receive the general funds overlay it is good citywide we're doing so well area our partner departments are not having to make cuts so specifically for your departments the department of building inspection as i mentioned earlier because we don't have a fee study we're not sure what our revenues are going to be and the special revenue department we have to make sure that we have correct revenues budget so it will be able to support ourselves so basically

because of that we had to kind of estimate what we think is going to happen with the fee we have to estimate what we think about happy with the fees based on preliminary conversations we've talked about that a little bit we made an estimate bans a 15 percent reduction that reduction will be based on 2014-2015 revenues so basically, i looked the budget revenues for 2014-2015 and took about 15 percent off that rheumatoid the in about $9.7 million reduction in revenues for the budget so i - you'll hear me as is it so difficult to budget we cannot wait we had superoto move forward and so that's why we

went with that so basically based on that and also on the other hand we have been increasing our budget over the past 4 years so our budget right now is almost $73 million so based on the fact we've been increasing our budget on of the expertise time and the unsincerity of the conversations are there that he basically decided for this proposal to basically keep the budget at the base level we'll keep it as what you approved in 2015- 2016 and that's about $73 million so if you look at the revenues the next slide which has the revenues i'm sorry - i'm - >> it's on the overhead. >> we can put it on the overhead

overhead. >> where are the revenues so the next slide is the revenues i can see a little bit about the history of our revenues you see from 09 the actual revenues $41 million and 2014-2015 did actual up to 75 years a banner year we talked about that about having 6 projects valued over $100 million in the fiscal year $336000 if you look at the proposed 2015- 2016 we shall proposed e prototyping to go down to $58 million for the charges of services that's reducing the revenue to about $58.6 million and which is about a $9.7 million resurrects in our charging facilities over the years we've had revenues but using fund

balances the proposals we'll continue to use will make the difference so the next slide is expenditures in our proposal we're proposing to basically keep 2015- 2016 and 2016-2017 expenditures anothers $72 million basically the base no major increases in the basis a there's one major reduction in 2014-2015 because there are a lot of projects in the summer we'll not have to worry about funding we've moved that funding to continuing fund to use the funding for a variety of years next slide is actual our budget or the revising condition similar to most departments the largest expenditure is from budget and as you can see we

talked this the department a increasing the number of authorized position to basically to get united states to a point we can provide continue to provide quality customer service center and keep up with the booming construction our fiscal year 2015- 2016 and 2016-2017 budgets are brings our fte up to two hundred and thirteen positions. >> are we factoring in our budget things like the buildings that are coming over from hud. >> right. >> the need for our in-law units for i mean are we fact or facts those in those are needs for there's you know not status quo. >> in this current year we've not factored that in for a variety of reasons the first is chief officer mentioned that we

should keep in mind but we didn't have the details until recently what that meant we didn't put anything in the budget and although we have the budgeting authority of 3 hundred and 9 position as we mentioned 2 hundred and 60 we have vacates in our budgeting authority we can use to kind of back filling fill some of those things seeing the presentation we'll need to talk about what does this mean gossiping in october if those are vacancy are fulfilled or if we have to look at other ways to fill them when we put the budget together we knew that some things will be coming up but we wanted to wait because of the revenue. >> yes. commissioner. >> also the issue of the fund

the emergency fund we're using nearly a million dollars out of it. >> right. >> do we have included in our budget maintaining a prudent reserve of that fund. >> that's operate the repaired occasion fund as the city attorney mentioned the budget is focusing on our annual operating fund which is our basically, the funds we get if fees that repair demolition fund is separately. >> where does the money come from do we need to replenish that so it's - >> right we're in repair of the demolition so far we're using in the current year maybe about $2 million to it seem like we've got enough funding at this time

also the controller's office i mentioned earlier we have a variety of fund balances and so right now we have an unappropriated fund balance not set for a fund of $56 million so we have funding to move different things around the reason we're being convert with this budget we don't know if $9.07 million it enough or higher and the controller's office mentioned ideally those fee studies once you change the feces it is changed four or five years so based on the controller's office presentation we'll have a little bit better information to figure out the fund balance and also take other things in consideration do we have enough resources available. >> and adjustment there.

>> also the fact i think we're going to be on the hook if there's an emergency an earthquake the first responders we're going to have a lot of those things so i think as we talk about our fees we need to be realistic about this not just automatically think we're i mean there's a reason to have the fund at dbi because we're the responsible party the one they come to write the checks for the emergencies i'm encouraging us to be realistic about it. >> not concerned about the budget or the him or her. >> the things we're obligated of we're not spending money but will happy if we have an earthquake if there's a need to keep our people on extra time if there's more of those slow down

that happen all of those kinds of things we're technically on the hook for . >> right. >> so just for clarification i think i was not clear when i said we're not boy and girl conservative we're conservative buyouts 2015- 2016 right side and truly fully to be honest we've envelope spent what we normally budget it is so normal to budget the $72 million but passed the city hirings process and a variety of other things we will will we spend $72 million at the end of fiscal year 2012 we spoent spent a lot lower it takes time to get the hirings and doing big prurpz like

purchasing vehicles and e.r. mosque things for staff all those things take a while what's happening in the past we've gun or been aggressive about 18 340i8dz was lost because of the revenues but we had so much expenditure fees we're trying to balance those things so there a budget we can spend