LAFCO approves FY2014–15 draft budget, opts to draw reserves to avoid general-fund impact

The Local Area Formation Commission on April 25 voted to approve its draft budget for fiscal year 2014–15 and agreed to continue drawing from reserves this year to avoid placing additional strain on the city—s general fund.

Jason Fried, LAFCO staff, told commissioners the commission is required by statute to pass a draft budget by May 1 and a final budget in June or July. He said the budget includes modest line-item adjustments (a small increase in non-personnel services and anticipated increases in clerk-of-the-board salaries and benefits) and that the commission has relied on reserve funds for the past seven years.

Fried said the MOU with the San Francisco Public Utilities Commission, which has funded much of LAFCO—s CCA-related work, will expire at the end of the upcoming fiscal year; the commission should plan for that contingency in future budgeting. Staff said LAFCO spends roughly $100,000 to $125,000 yearly on clerk and supporting staff costs and recommended accepting the city allocation and then returning it to preserve the commission—s right to that amount in future years while using reserves this year.

Commissioners discussed the trade-offs and agreed to continue the practice for one more year to avoid tapping the general fund. Eric Brooks, speaking during public comment, urged staff to ensure funds allocated under the MOU remain available to Clean Power SF after the next fiscal year and recommended some budget flexibility in case SFPUC resistance requires additional, more expensive planning work.

The budget item carried without objection; staff will return the final budget to the commission for approval at the May meeting.