alex koskinen, cfo db. i before jumping into the proposed budget. for the next two years. i will present my historical financial analysis that will explain the department's current financial position and how we got here. this table shows three things, revenue expenditure and fun balance. as director of reardon mentioned d b is completely self funded, and it relies. it is completely funded by the fees that the department collects. any time that revenues are greater than expenditures that surplus falls to the department's fund balance and after the great recession in 2008, there was a boom in construction and revenues far exceeded expenditures, resulting in the accumulation of a large fund balance. however, uh, when the pandemic hit. there was a complete reversal and as you can see, revenues dropped as the director had mentioned and expenditures stayed relatively steady. the department is mostly labor and does not have control over most of these expenditures. and so the current state we find ourselves in is with expenditures far exceeding our revenue. we have a large deficit

alex koskinen, cfo db. i before jumping into the proposed budget. for the next two years. i will present my historical financial analysis that will explain the department's current financial position and how we got here. this table shows three things, revenue expenditure and fun balance. as director of reardon mentioned d b is completely self funded, and it relies. it is completely funded by the fees that the department collects. any time that revenues are greater than expenditures that surplus falls to the department's fund balance and after the great recession in 2008, there was a boom in construction and revenues far exceeded expenditures, resulting in the accumulation of a large fund balance. however, uh, when the pandemic hit. there was a complete reversal and as you can see, revenues dropped as the director had mentioned and expenditures stayed relatively steady. the department is mostly labor and does not have control over most of these expenditures. and so the current state we find ourselves in is with expenditures far exceeding our revenue. we have a large deficit

if i might, i'd like to turn it over to our cfo , alex koskinen, to speak to a policy matter and maybe touch on item 16 relating to fees. uh yes. are we calling that together or no? we're going to wait till later. we're going to act all the building fee later so we will not be calling the item together. we will not be calling the item right now. okay or should we? i don't know, building fee. i'm going to pause that thought, but go ahead to let's discuss the actual budget first and then let me sort out the legislation shortly. and so let's yeah, let's do that. the what are you agree with the boa and then we'll go to the boa. okay. good afternoon. supervisors. alex koskinen, deputy director administration for we are indeed in agreement with the bla on all of the technical recommendations. but much like the other departments, there is a policy recommendation that it is our understanding is simply a flag for you. it is not an actual recommendation from the bla, although they can they can speak to that. this is an. 0922 manager, one upward substitution from a permit technician three i have

if i might, i'd like to turn it over to our cfo , alex koskinen, to speak to a policy matter and maybe touch on item 16 relating to fees. uh yes. are we calling that together or no? we're going to wait till later. we're going to act all the building fee later so we will not be calling the item together. we will not be calling the item right now. okay or should we? i don't know, building fee. i'm going to pause that thought, but go ahead to let's discuss the actual budget first and then let me sort out the legislation shortly. and so let's yeah, let's do that. the what are you agree with the boa and then we'll go to the boa. okay. good afternoon. supervisors. alex koskinen, deputy director administration for we are indeed in agreement with the bla on all of the technical recommendations. but much like the other departments, there is a policy recommendation that it is our understanding is simply a flag for you. it is not an actual recommendation from the bla, although they can they can speak to that. this is an. 0922 manager, one upward substitution from a permit technician three i have

alex koskinen, deputy director administrative services. i have the monthly financial update. uh next month, we'll have a more significant update june 1st is when the mayor releases her proposed budget. and then as you heard from, uh, supervisor staff i in june the supervisor's review the mayor's proposed budget and make their make their changes. so june and july will be significant updates on budget, but for now, um, i have the regular update. so we are 83% of the way through the year 80% for labor because it only labor only posts every two weeks and, um, are charges for services are major revenue source is 76% collected so behind where we would like it to be where we expected at the beginning of the year, and the story remains the same from february march, april we had seen a spike in december. we were hopeful that that would continue, but it looks like that was just people trying to file things before ahead of the code change. so next slide, please. these are the. numbers that reflect the narrative on the previous page, and we're expecting to end the year about 10% below bu