Good morning, everyone.

I'll now call the uh meeting of the budget and government efficiency committee to order.

Uh a quorum is now present, consisting of uh Mr.

Sherman, uh myself the chair, and councilmember Gomez.

Moving right along, um, the committee record of actions from the May 24th, 2017 meeting will be approved by unanimous consent unless pulled for discussion.

Uh do we have a request to pull the record of actions?

Nope.

Okay.

Uh well, we'll we would now proceed with non-agenda public comment, but I don't see anybody here to do that.

Uh do we have any committee member, mayor, IBA, or city attorney comments today.

No.

Okay.

Okay.

Um are there any requests to continue an item on today's agenda?

Okay.

Uh we'll now proceed directly to our action agenda, which is to review a report from the financial management team recommending council approval of the fiscal year 2018 appropriations ordinance.

And I, Matt, are you our presenter?

Yep.

Good morning.

So good morning, thank you.

Uh so my name is Matt Vespe, Deputy Director of the Financial Management Department.

And uh with me this morning is Michael Clark and Adrian Del Rio, both coordinators within financial management.

And this morning we're here to present the fiscal year 2018 appropriations ordinance.

So the appropriations ordinance really uh really marks the final step in the fiscal year uh 2018 budget process.

Uh this document, the ordinance appropriates the budget based on the two controlling documents that have already been approved.

Those are the salary ordinance and the budget resolution.

The appropriations ordinance defines the legal levels uh that control both that control both operational and capital expenditures in accord in accordance with City Charter Section 69.

Also, uh City Charter Section uh 69 requires uh that this ordinance be approved by June 30th each fiscal year.

And with that, staff recommends uh forwarding the FY18 appropriations ordinance to City Council for approval.

So each year, financial management brings the appropriations ordinance forward for uh City Council approval.

Um each year typically we have a number of edits, changes, improvements that we that we request approval of.

Uh this year is no different.

Uh we've got about 14 changes that we're requesting approval of.

We've uh grouped them into two primary categories.

Those are CIP cash management and then technical adjustments.

The CIP cash management uh changes requested authorities.

We identified those uh primarily through our CIP uh semiannual monitoring reports that we've been doing over the last two years.

As you are aware, those reports have become lengthy.

They are lengthy documents.

Um a lot of the items that we requested approval for in those documents are uh ministerial administrative type adjustments within the capital improvement program.

As a result, um continuing to try to further improve our cash management within the CIP program.

We've identified a number of authorities that we'd like to request addition or adding to the AO to allow us uh staff to administer, make those changes at a staff level and uh bring the CIP monitoring reports back to a higher level policy discussion of what really uh the focus should be of those reports.

The changes that we've identified are strictly intended to continue to improve cash management within the capital improvement program.

Uh Mike's gonna go through the details of each of those requested authorities, uh but I want to be clear that City Council action would still be required uh to add close or substantially change any ongoing CIP projects if these authorities were added to the AO.

This slide provides a short list of uh those adjustments.

And this slide provides a short list of our technical adjustments, uh which Adrian will cover in detail later in the presentation.

Uh with that, I'll turn it over to Mike to cover the details of the CIP cash management authorities.

Thank you, Matt.

Starting off with our first recommended change for this year.

As we've reported in our both of our semi-annual reports this year, the underfunded projects list or the waterfall list we've noticed, which was the list of projects to fund with project savings.

We haven't seen as much money going to that this year.

That being said, it's still useful, even though it's a little bit less than $100,000 that we're seeing coming out of completed projects of excess budget.

It's still useful to keep that budget circulating within the CIP.

So we're recommending as a replacement for the waterfall list that project savings from completed or technically completed projects may be transferred to an annual allocation of the same asset type just to keep the budget floating within the CIP program.

Our next change number two is also having to do with annual allocations.

Currently under the AO, we have the authority to close projects and return funds to fund balance for standalone projects, but not for annual allocations.

And as a result of that, any time a sublet project underneath an annual allocation ends with savings, we have to go back to council and specifically ask for the budget to be removed from those projects, which is why you see some items on our semi-annual action that's requesting to deappropriate 26 cents from a grant because there's just no other way to get that budget out of the program.

So for our second uh request for change, we're asking that if there's any unexpended fund project balances left in annual allocations at the end of the year, that we able to administratively remove those uh balances out of the annual allocations so that we can notify the fund managers that those funds are available for reprogramming, and any reprogramming of those funds would have to go to council uh to be added to a different project or to a different uh yeah, basically do a different project.

Our next recommended change has to do with funds management.

Uh regularly, the Comptroller's Office and Financial Management are reviewing the city's over 2,000 funds uh to try to find uh uses for funds that aren't currently programmed for projects.