have more needs. they have daily needs in terms of trying to manage the mental health and the addiction issues, some of the residential care facilities, this as new phenomena for them and we try to enhance the rates so they can get the right kind of staffing and support they need to make that over all cost work for them. >> so i understand that many of these facilities are closing down at this point. >> it's been a historical issue that's happened over the last two decades and part of that -- i've been here for some of that and i've watched that and some of them have been family that is have leased facilities that the next generation -- i've seen two or three of those, the next generation is not interested in taking up that buiness others that have not been able to keep up with the costs of rents for their facilities. it's a really important level of care for us and win of the areas that we are working on with the

office of health and also as you know our planning in our services is to really try to see how oawd can work with us and provide support for these small businesses. they are small businesses in the community. we want to make sure they are in our pipeline for housing support and try to give them as much structural support as we can from the other departments in the city. >> it seems like your existing program could be useful in some of the owners have said that they haven't been really increasing rates for quite a while now. >> yeah. some of those rates come from the state and some others continue to work as well. >> is this something that the city can help with? >> absolutely and look into our legislative areas in the department. we are doing a lot of work around that and planning and trying to look for support for those facilities.

it is a level of care that's going away in the city and we don't want it to go away. >> i hope you could quickly look at your budget and see how you could help with that situation. >> thank you, sir. >> supervisor stefani. >> just really quick, do you have a comprehensive list of behavioral services from acute inpatient beds to our clinics? >> absolutely. >> i'd like to see that. >> we have a provider manual that provides that for the community as a whole. we will get that to you. >> dph changed the way you provide treatment services to an organized delivery system. i want to be clear on what that is and ask if you have a comprehensive list of the community-based providers for that. >> yes. so we've done over -- i think that we should all be proud that over the fact of the last 20 years they are proud that we have provided purely general

funds for our substance abuse system. remember that it goes connected to the aca issue. those with addiction not getting medical. so we had to provide for that care. so many of our facilities were general funded. under mental health we had a program that you could draw down the medical. so we had -- we've had i think almost $60 million of general fund with this new organized delivery system. now they -- we can draw down 60% matching to our general fund. we believe that's going to be an assistance to us and we want to be mindful. we've managed a lot of these organizations as they have lifted the oversight. they are looking at it on a yearly basis on the mental health side. we only have those audits every three years. the fact that we are doing a yearly audit we will find mistakes made bring the programs. most programs are required because we are required i think

within 14 days to pay back the federal government and then we work with the organization to pay those back. one, we have to work to provide technical assistance to the addiction programs who never had to bill medical, some like hr360 had experience with doing that and it was an easy transition. it was a treatment planning, got to mark every buck or when an auditor comes in they will take those dollars away. so we have worked diligently with each program. there's a concern that we don't want to lose that general fund match or have that organization need to pay hundreds of thousands of dark to the city and having worked with these contractors for years we've had contractors who had to pay back because of exceptions to the system. we have strengthened our oversight and our technical assistance to these organizations to ensure they bill medical right. >> thank you. >> thank you very much, barbara. just a couple of questions about

your operating expenditures. assistance is actually about 25 -- let me make sure i'm reading the right line. yep. aid assistance. what is at? >> i'm going to leave that our cfo. >> come on down, greg wagner. >> i want to do this rapid fire. >> supervisor greg wagner, chief financial officer. that's a small line item that's some rental assistance. city wide the vast majority of expenditures and aid assistance line you'll find in human services agency. >> so for whom? >> you know? i think it's more of an e -- >> so no one ever draws down on it, it's just kind of sitting there. >> no, we would expend those dollars. >> okay. what about the carry forward budget? >> the carry forward budget is another one that we've been

talking abo after the conversion to the new program. there's another line called programatic projects. those are projects that are not capital but continuing projects so things like our electronic health records project, our whole person care program, things that are multiple year projects with the conversion to the new financial system. some of those dollars got split into that separate account called the carry forward account. we'll be moving that in the next cycle back into the programatic projects budget so that's more of an artifact of the conversion to the accounts. >> so with the expenditure at least a level that you're going to draw down, that doesn't change? >> it doesn't change. it will be categorized differently. that's expenditures associated with our electronic health records project. >> thank you.

the intrafund transfer out, what is that? >> that is where we have between accounting funds within the department were large enough that we have multiple funds and there's reasons to transfer funding between those funds where it's to allocate costs across the hospital to other programs our vice versa. it's when money is transferred between funds within the department and it's a way of keeping track of the accounting of those funds across the divisions in the department. >> can you speak to the unappropriated revenue retained? >> yes. unappropriated -- >> [inaudible speaker] >> okay. okay. unappropriated revenue retained, that is in our laguna hospital, that service fund. that is revenue that goes into that fund. it's dedicated to pay for death service on the certificates of participation that were used to

finance the hospital rebuild and it's classified in that category. >> all right. thank you very much. supervisor sheehy, one last question? >> i just wanted to make a point. i think the rental atance you identified is for people with hiv. i remember working with y'all. you guys end up handling it for people who were on private disability and when they turned 65 they actually lost private insurance, disability insurance and that caused a huge drop in income and threatened nearly every one of those individuals we -- with eviction. >> thank you for that information and that presentation. >> we need to take public comment on 7, 8 and 9. any member of the public that wants to speak on 7, 8, 9, please come up. seeing none, that's closed.

i'd like to make a motion to approve item 7, 8 and 9 with a positive recommendation to send to the full board for a july meeting. i' not sure which one. anyone, but just bring it in july. >> i believe it's the july 17th. >> july 17th is fine. that's been seconded by supervisor stefani and we will take that without objection. thank you. all right. thank you department of public healt you are all dismissed. we'll see you next week. next we are going to hear from maria but i see that the treasure, tax collector is setting up so we'll let you continue, maria. we'll hear from you after the treasure tax collector.

our thresh -- our treasurer is not able to join us today. his presentation will be -- i was going to say performed but presented by amanda freed. there's a budget of $44.4 million and there's a slight reduction in their budget, .$ million. they have 210 personnel and they are looking to increase that by three additional personnel. you ready? >> um i'm ready. amanda freed. the treasurer sends his regrets he could not be here today. i wanted to go over quickly our strategic goals. we were to increase efficiency, increase revenue for the city and county and improve customer service. over the past year i'm going to highlight just a few things. we streamlined the permit billing for cannabis businesses,

we launched an online permit application in partnership with dph, launched a tskorce in partnership with many of you and we worked with the mayor, the board and several departments to reduce funds that impact low income people of color. thank you for your partnership on all of those. the budget that we have for you today is as supervisor c shared, we are proud that as tax revenue has gone up our budget that we are submitting today has gone down slightly. our budgeted ftes, there's a slight increase. that is largely to fund two aonalddititaff people to work on the policy tax auction, something that you know is important to all of you and somethings that we are -- you and something that we are excited to continue to work on and improve. our expenditures are as follows, the largest bucket of course is

salary, fringe and i'm happy to talk about the services of other departments, categories, the primary factors there are large work order with 311 to assist with customer service and our lease payments. in 2018 and 19 we have many priorities. the first is to really work on implementation of the living wage for teacher salary parcel tax that just passed along with themercial real estate tax that just passed and any additional proposals on the ballot in november of this year. as you're all aware, we work hard to work with you sohat when we know of measures early that are going to be put to the voters as a ballot measure that we work closely hand in hand to make sure that it's something that our office can implement and implement quickly. we have working on the property project. we have taken stock services

from outside venders to our own city hall staff. we are overhaul, credit cards and cash collection. we are continuing to invest in our redesign so we can impro our taxpayers experiences and we are also adding some business intelligence-based business taltax audits to help us increase that revenue. that's all i have today, supervisors. >> i don't have any questions for you. >> me either. >> great. thank you for coming. >> thank you. >> next we'll hear from maria. maria is the director the department of children, youth and their faemilies which has a total budget of $249.4 million.

maria has come before us to ask for a very humble addition to her budget in the amount of $25 million. she's got 55 personnel and she actually wants two more. okay. maria. that's your introduction. i'd love to hear if you could focus a little bit more less on what you do, more on how you're going to spend the money and why and what you're going to do with it so we can get going. >> yes. yes. >> trying to honor that. >> thank you. >> great. >> good afternoon, chair cohn, members of the committee. my name is maria sue, the director for children, youth and their families. thank you for being flexible with me and my schedule. >> sure. go ahead. sorry. >> so let's just dive right in. so over the past two years since

proposition c, the children and families first initiative passed, we were mandated to go through a process with our community in terms of gathering data for a community needs assessment as well as put together a report on how we would allocate those funds. those community process is a request for proposal that we issued at the end of 2017. i want to share with you the goals of that rfp also the goals that's going mandate and direct our department for the next five years. so number one, children and youth are supported by nurturing communities and families, children and youth are healthy and children and youth are ready to exceed in school and they are ready for college, work and productive adulthood.

we cannot reach these goals by ourselves. everything we do we do through the lens of equity. we have taken on a very robust training moj l that we've taken our staff through and we are going to share with our communi community-based organizations to ensure that we work together to create more equitable access to the opportunities and services that all children, youth and families need to have for opportunity and happiness. in short, those with a higher need receive maximum benefits from our funds and to the maximum extent feasible distribute funds among services for all age groups. these are our priority populations. you will see this is not new to you. you've seen this before. we are prioritizing the

neighborhoods, our african-american, latino, pacific islander families as well as low income -- asian. you will see the break down for the funding for service categories. these are large numbers. within this we ended up spending a total of 150 different non-profit agencies that will be providing almost 300 different programs throughout our entire city. here's a map of all the service sites that our new programs that we'll be implementing starting july 1st, 2018. in terms of the budget expenditures, the large numbers that chair cohn spoke about earlier is this is how it breaks down, the majority solve -- of

our dollars are for grant programs which ends the $181 million we are a pass through for the school district peace dollars and so if you pull that out you will get a more realistic number of how much money we allocate to non-profit agencies and then the rest you can see here. with that i am prepared for all your questions. >> thank you. questions, of course. so the mayor added $1.7 million to yourget ts year, particularly for i think what is going to be called out of school time. summertime, after sch programming. how is that going to manifest? >> i'm not sure where you're -- where is that. what we did when we went through the process is we projected the growth in the children's fund. >> hold on. you can get your question answered for the budget office. perhaps i'm wrong.

>> there was approximately a $1.7 million to address full time and that's including of after school programming as well as youth sports and various out of school programming related to that. >> okay. so thank you. so back to you, maria. do you know where or what programs you're going to add that to and when that money will materialize? is it july 1st? so it would be in the fall? >> with all funding that comes through our department it has to go through a process for that. yes, i do know that funding came into our department to ensure that we meet the needs of after school programming, particularly for athletics programs in the city. we hope that we would be able to provide funding starting july 1st primarily because a lot of programs, out of school programs and athletic programs start programming during the summer. so we hope to be able to utilize those funds as soon as we can.

>> so there's no specific program or anything that you have in mind? i'm just going to move because you'll be back. as you know, we've heard from a number of organizations. i've had many conversations with you about the reorganization of how you have identified program cuts. organizations havexperienced program cuts although there were no funding cuts. can you talk about that? >> so through the two-year process that i mentioned earlier we identified key service areas that needed additional services and targets or focus. so with our additional lens of equity we wanted to make sure that we allocated more funding to high need neighborhoods, to target populations such as african-americans, latnos and pacific islanders in our city and we also identified that there are service areas that need additional support such as education support or culture identity development. so programs that we knew through best practices, through

conversations with key leaders in the city that we needed to bolster those types of programs. so, for example, an educate-support-type program is a community-based program -- >> lets me interject here. it's a huge departure from the way you've been conducting business for years. i guess my question is has the need all of a sudden manifested or did you have a change of heart? what really provoked this departure from the way you were funding for a very, very long time. i've been here eight years so t's for at least eight years. could you talk to that? >> once again, when our legislation that we institute at our department was passed in 2016, 2014, i'm looking at supervisor yee who helped draft that legislation, there was language specific that required us to do equity analysis. through the equity analysis we

identified target populations we nded to ensure additional support in capacity building, technical assistance and funding were allocated towards. so that's what triggered our shift in being more targeted, more focused on high need populations. this is -- you're right, supervisor, this is the first time that we are being clear about our target populations and high need neighborhoods that we are trying to achieve better out comes for. we went through a process to identify data points that we are making ourselves publicly known to try to move. we feel -- this is a common i've said many times, once you see the data points you can't unsee them. we will make sure that we do whatever it takes to move these data points, particularly for our african-americans, latinos and pacific islanders. >> thank you so much. supervisor yee.

>> you have a -- certainly it's not about cost but there's certain things that happened. when you are trying to do something this could be something that always falls through the cracks. it's certainly maybe not around this and how you interpret it. one could see it as funding adults or one could see it as funding support services for kids. i don't know what happened that they have fallen through the cracks but there's the need to take a closer look at to see how we could help move that. one of the reasons i'm very

partial to this, to foster kids and the fact that i've gone to their stuff over the years is i see testifying how -- you know, these court ordered adults stabilize their -- >> yes. working with foster children in the foster care system is extremely important for us and it's actually a target population category. i will be more than happy to sit down and work with you, supervisor on trying to figure out ways to do do that particular service.

>> thank you. >> and i just wanted to say also that i actually believe that -- around educational outcome is actually in alignment with is the main -- [inaudible] most of the children in san francisco. but i am looking at these dcyf results and the service for 2013. >> it is not that across the board. so i think when we see these type of things that i got to see it broken down because there is

actually your measure also in what you are doing. so i think this does not reflect what you are trying to do because it's true once you see the data you can't see, some kids need more than others and so just to see that when we see this type of data i was allowed to see it just sort of pieced out. i think that's really important. >> all right. thank you. one last question and then we need to move on because ingrid has to get her kid. i'm sure you all can understand. >> sure. >> in your budget, your draft

-- >> thank you supervisor. it's great to be here. yes, all of the staff are in a specific project. >> they are proposed that are funded by the school district. those two positions are filed by the district employees. if they were a city department we would have done a transfer of function. they are not so they should not have full. >> this was 2014, i believe, but we've had this effort going on. it's a planning effort to

come up so there's a way to coordinate services in san francisco for our children and families and i don't know what to do to be truthful. i think next year if you come up with a budget where they are included i need -- we need to know what impact they are having, five people full time doing what at this point. >> thank you for your presentation. they have a budget of $29

million and they have a decrease to decline of -- >> thank you as much for accommodating my schedule. i'm going to make it really short and sweet. i know everyone has had a really long day.

to start off i'm going to put a couple of things up that we definitely apply to our commission. still we are not proposing any new ftes. we are not general fund funded. we are not proposing any new initiatives on our five-year strategic plan. our chief focus, our goals that we share be other departments is similar to dcyf, this is not work that we go alone. our focus around quality early learning with the office of early education and dcyf and blended type of approach. we are beginning to really cement it in san francisco around early identification and

prevention. especially for children. our goals are all sharing with ocee and other departments. this is that all children are done to three initiatives. one is the support of early educators and making sure that all our early learning settings are funded by the city and are of the highest quality. that family support, 26 resource family centers and every neighborhood has one, some have multiple. with community clinics, we are establishing a universal system of intervention for children ageing 4 through 5 and this shows a lot in being able to get

the children as early as possible. sod onto our revenue. most of our funding, at least for the operations of the first five come through our state tobacco tax. we administer that funding. we have over the years experienced a remove decline, which is a good thing because we have less smokers in california. the challenge with that is that there's programming that's tied to this revenue. we do matching grants through first five california and we also receive grants under the california department of education specifically for the early learning studying to build a quality of those settings. we also have over serve fund which we've been dipping every year and are using more and more because of, again, as our tobacco tax declines we want to

maintain a stable fundin programming. at that point that we serve it will deplete. a lot of our work is cross departmental so we have recoverie fro over departments. this total our next year budget is a little over $ million. r expenditures categories, most of it really goes out to community programming and child development and family support. that's where the emergencying child health is part of the -- merging child health is part of the intervention services. everything we do, we evaluation. our staff is a full time staff of 15. we are a lean, mean, well oiled

machine. i'm not going to go into great detail but there's early learning and child development and family support. this is what state tobacco compliments across the program area. and this is what we see from other departments to do the work around child development where we are the lead on the quality early learning centers. and so, again, our focus is about making all children kinder ready. they are in quality early studying, that all children receive early intervention services that we do all of this through a lens of preventive health and that supports the

process. any questions? >> yes. thank you. supervisor. >> i really don't have a question. i just want to emphasize to this committee has ingid has mentioned this is a source of funds that is diminishing thanks to supervisor cohn we need more people not to be smoking so i think this board actually has future funding for first five as we all have family resource centers embedded and now they are trusted places of information for all of our younger families. but i just wanted to thank you and thanks for all the work that you're doing. >> thank you. >> we are good? thank you. thank you very much. okay. the next folks i want to hear from, the economic and workforce

development. please call item 5. >> item 5. a hearing to consider the release of reserved funds, office of small business in the office of economic and workforce development to fund rent stabilization groups. >> thank you very much. i just want to signal to the bla, do you guys have a report for item five? okay. after they present we will hear from you. so let's hear on item 5 -- this is just to release the reserve funds for the office of small business and office of economic workforce development. great. we'll hear the budget presentation after this.

>> good afternoon, supervisors. i first want to thank you for sending in the request for the release of the $306,250 and budget for the legacy business program and for the budget analyst recommendation to approve the release. i believe supervisor yee is the only one on the finance committee at the time this appropria appropriate request was put on reserve. so i just want to see what transpired and why it's there. in april of 2016 then supervisor david compos introduced an

appropriation ordnance for $343,5 $343,559. $37,109 to fund a legacy business program and for the remainder of the fiscal year 2015/16. it was determined that oawd has enough funds to fund the position and this was struck from the appropriation request and the remaining $306,250 was put on the budget and finance committee reserve. at that time the mayor's budget office, supervisor compos then agreed to allocate $2.5 million in general funds to the legacy business program for fiscal year 16-17 and 17- 18. this is $1.25 million for each year and a million to be allocated for the historic preservation grant. the historpanic historic prese.

we agreed the budget analyst recommendation to cut the general fund by $750,000. there's a program with the $306,250 in reserve. $585,440 in the carry forward fund, not spent from fiscal year '16, '17.

operations for prezzer er -- preservation grants to build an interactive search function that will help in the marketing in the registry and the businesses listed in the registry. there's the reservation grant for operations for fiscal year 17-18. the slide i have i'm going to talk down the center column first. so we started out the 17-18 year with $835,420 for the grant program. we have spent in business assistance grants. there's vendor fees.

we are not having to spend administrative fees to third parties but there are some businesses, who do not want that so we have a third party who issues the grants to the awa awardee. we have to date $208,599 in rent stabilization grants. so with that column that adds up that we had available in funding. so we have spent that to date. the last column shows the reserve. we do have $217,146 obligated in grants awarded in the pipeline

and will also need to be renewed from the 16-17 rent stabilization grants that were awarded. so this leaves us with a remaining 6 -- excuse me. $64,104 i revenues that will be available should we receive any grants after june 8th to be able to fund that. so this concludes my presentation. i hope i provided you with the information you need to approve the release of the funds. i'm available for questions. >> thank you. we are going to take public comment on this. any member of the public would like to comment on the release of that he has funds please come down. seeing none, public comment -- i'm sorry. legislative analyst has some mm public comment is closed. now you. >> very brief, these were funds that were used to supplement this 17-18 budget for business

assistance grants and rent stabilization grants. they expect to fully spend all the funds including the original appropriation in the fiscal year and we recommend approval. great. all right. folks, there's a recommendation for approval. may i have -- i'll make a motion to approve this item and send to -- and file in hearing. seconded by supervisor yee. we will take that without objection. thank you. thank you for the hearing. thank you for the recommendation. okay. we are going to continue to move forward. i'd like to invite representatives from the economic and workforce development to make a presentation to us about their budget. their budget totals $6.3 million and they're asking for a humble $2 million more. >> $1.97 million. >> who is counting? absolutely. you have 104 personnel and you

do want one more? >> three more. >> there he is. >> we are looking at reduction over all fte for o department. >> continue. >> good afternoon, chair cohn and committee members. i want to thank you you and your offices for the time and support to this date getting up to this presentation. we are limited in time so allow me to begin. as you can see in front of you you can see our mission and the goals that ground our work which i know many of you are quite familiar with. when we look at over all economic development our programs serve the needs of nonprofits, looking to stabilize their space as well as our city's desire to resist our economic resiliency. we serve a young man living in his car looking for the opportunity for entry level employment and finding a program

such as glenn eagles. an aged youth looking for an access point. a worker wanted a blue collar job. we serve the small business person who has seen their dreams devastated by flames and served by a program to provide financial relief where state and federal programs could not and we want to serve the community stake holders who want to see their cultures and themselves reflected. when it comes to new dome developments in our neighborhood we look how tin vestment can benefit them -- how the investment can benefit them with job training, homes they can afford. this slide here provides an over view of our department, the previous slide. you're familiar with these units in our department. the next slide is what we are

asking, $1.97 million increase over last year primarily in neighborhood and workforce expanded programming. as we discussed through ftes that represent .07 reduction over all ftes for the current fiscal year over last year, those will support our neighborhood team and a city wide public space initiative as well as our joint development team for the pre and post entitlement process for the executive housing on production. our -- to move into our next slide, as you know, we serve over all dme in a variety of -- economy in a variety of ways. i want to highlight the initiative and the enhancement of space acquisition portion of that program. we have served 72 non-profits to date, 202 with immediate service from our program management team and we look forward to focusing on security this year and the

stabilization to allow thousands more meals to be provided to seniors. our next slide representing the pathways to careers that we want to support, even the strong economy of 11,900 individuals actively looking for work. 4,000 are served by our programs. coming from big from the vail -- valley and tenderloin. we want to expand the eagle that reserves the republic populants with six trainings that can serve up to 120 individuals this year. we want to expand our youth programming, in the omi and underserved neighborhoods right now that can serve an additional 150 youth through those

services. finally as we look to the future of work and our ability to serve the advanced manufacturing industry and their needs we want to invest in programs that can providehose blue color jobs without the need of a four-year education. when it comes to our neighborhood and small businesses many solve y-- of yo are familiar with the work we are doing there. we are looking to focus on neighborhoods and individuals and entrepreneurs of color that we can support. again, we have a city wide

initiative. the use, as many of you not my, we have a goal of reaching 5,000 units a year. we do need the support from positions both in the preentitlement so projects can move forward, quite specifically with the numbers that we can see in terms of 32% reportable, 35% of what are affordable, 15,000, 30% of which are affordable. most importantly, we are also focusing on the community work to address equity that i mentioned in my first comments. that's really going to make sure that individuals know that when a project is coming to their neighborhood not only can they leverage the important neighborhood legislation that we so diligently worked on in the city but also that we are providing opportunity to connect them to job training programs so move up the glider and benefit from the units that are being created in their communities.

i'll be happy to take any quest. >> appreciate that. >> i just want to make sure, will there be a gold star just for timing toda or do you want to wait until the end -- >> we are going to wait. >> increase in economic and workforce -- >> i'm sorry. it depends which side you're on. okay. all right. jokes aside, colleagues, any questions for mr. torres? oh, wow. okay. i don't have any at this time. i don't have any questions for you. i think it's straightforward but i look forward to you coming back. >> absolutely. >> i will have more particularly about what you plan to do with the $2 million unless you want to talk about it now. >> certainly. in terms of the $1.97 million, in terms of workforce, the increased access point for 150 youth to be serving the lmi.

i think as you remember -- >> the expansion of an existing program? >> expansion of youth program and expansion of existing partner. as you remember in that neighborhood we suffered quite a bit of violence -- >> which neighborhood? >> omi and lake view. we have security cameras but also -- >> let me ask a question. i don't need all that. so here we are $11 billion budget, maybe it's a hypothetical question since it's the end of the day and i've listened to 20-something department heads talk about expanding that are programs. when the economic downturn comes and it will, your heard mayor farrell talking at preparing for that. >> if it's not now, it will come. >> stop it. stop it. do you see how he's so smooth?

i'm glad that we have a witness. you're so good. >> [multiple speakers] >> the question is with the expansion of the programs, how do you plan -- or what's the strategy too make the cuts? do you need to spread the money around. there's an expansion. >> certainly. when it comes to public safety and violence prevention we know that it's extraordinary important. from a higher perspective one of the items i touched on at the beginning of the presentation s our economic resiliency plan. when that time does come we can also plan it in a phased approach with the city departments for that time. through the economic resiliency plan, which i believe that we are bringing to you and the mayor's office in september of this year. >> okay. i look forward to it.

thank you so much for you presentation. >> thank you very much. >> ladies and gentlemen, this is torres who is a graduate from sanford university with a degree in theater arts? >> also in creative writing. >> and creative writing. that is an hell an investment. >> thank you. >> no problem. >> next we are going to hear from -- we are going to hear from the planning department. john, are you here? all right. ladies and gentlemen, john ram is here. >> i'm asking for a decrease. >> asking for a small decrease. i can take six minutes. >> come on. we're ready to have you. >> good evening, commissioners. this is starting to feel like a planning commission hearing. phase to see you all, supervi superviso supervisors. thank you. here to present our proposed budget. i want to tank kelly and raven and the mayor's budget office

for all their work on this. thank the controller's office, budget and legislative analyst and we'll move forward. we will -- the first slide just shares the current initiatives that we want to work on in the next two-year budget. we've been a real resource in the housing crisis and we are seeing more and more every week. it's a piece of the legislation from supervisor peskin and others. it's sort of grown over time. >> excellent. >> we want to address the cannabis related applications. those are representing a whole new amount of workforce. we will be transferring three of the six members of the office of

short term rentals back to the planning department under this. then there are two small pieces of financial legislation that we are working on here as well. one is certainly the enforcement fund to do all enforcement activity. there's a quirk to only use it for signed enforcement and we are asking that it be used for all enforcement activities. then there's a small piece of legislation related to circulation that we can get into if you like. so next will be -- we've seen kind of a plateau of our work. we have unprecedented growth in years before. double digit growth in some years. that has plateaued. interestingly it has not dropped substantially but it is not growing. we saw since fiscal year of

10-11 we've seen an increase in 6,000 total cases a year and some solve those prior years had double digit growth. so we are kind of-- r budget re the expenditures that's consistent with a given year's volume or anticipated volume so i'll go over that on the next slide. the budget is actually proposed to decrease next year a bit. there's an analysis and so on. the seco decrease,we expect that 19 and 20 projection will be increased next year. there's funding for the hub eer,

the area around market in the transquarter study and a grant we receive for the 22nd street cal train relocation study. the development impact fees are mainly associated with transition plans includi $3.8 million. that was budgeted in the current year. that actually will allow us to take the preferred alignment to the next level. we receive about a million dollars of on going impact fee work for the administrative side of that work and it relates to specific projects such as the nexis that we have to do every five years related to the fees and the feasibility study. the department expenditure is anticipated to go up by about $400,000 and includes a one time cost related to doing environmental work for the airport.

the general fund is expanding the increases as well as salary and benefit cost increases. as you can see on the pie chart, 18% of our revenue comes from fees. so staff by far is our most significant expenditure. those go up 6% next year, 2% the following year. it includes the -- as i said, the transfer of the office of short-term rental and other d.vious related costs and over the major changes within the nonpersonal reflected decrease in the contract cost and a $1 million budget related to the impact fee funding. and then a service of other departments which includes city attorney, time and so on.

we anticipate the 19-20 numbers will change next year as the rent and services cost are calculated for our new home at 49 south. our rent will go up substantially when we make that move. >> how come you guys don't own? why do you have to pay rent? >> we are one of the many departments that does. >> it's a risk. >> probably true. >> continue. >> i'd love to own my own building but i'm not sure i have that option. >> go ahead. >> son the next slide, these two pie charts, you'll see that on these pie rathers the -- charts you'll see the proposed allocation. we devote it's about 73% of

applications. have2 pe on the enforcement team. let's see. the number of ftes budgeted for 18-19 is about 237. that's about 4.7 more than this year, due to the office of short term rental. one new position that we are requesting for that. we have approved the order of 1280 units. we need a permit because we are working with use with fire on these adus but we are getting a pace of about