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Controller's office outlines reserves, baselines and potential school-district rainy-day withdrawal
Summary
Deputy Controller Monique Zamuda briefed the Budget & Finance Committee on the general reserve, rainy day reserve, budget stabilization reserve (projected ~$95M), and voter-mandated baselines totaling roughly $450M; she said the controller's office is assessing whether SF Unified School District will be eligible to draw from the rainy day reserve before the March 15 deadline.
Monique Zamuda, deputy controller, presented a detailed review of the city—s reserves, baselines and set-aside rules to the Board of Supervisors Budget and Finance Committee on March 13, explaining the mechanics of the general reserve, rainy day reserve, budget stabilization reserve and several voter-mandated baselines.
Zamuda said the general reserve policy requires deposits that equate to about 1% of general fund revenues in the current year (approximately $32 million) and that the policy phases to 2% (about $74 million) by FY2016-17. "The purpose of this general fund reserve is to absorb a year end revenue or expenditure problem that is not known when the budget is originally passed," she said.
Rainy day and stabilization reserves Zamuda described the charter-established rainy day reserve, which requires deposits when growth exceeds 5% and imposes strict withdrawal rules. She noted the San Francisco Unified School District has a conditional right to withdraw up to 25% under the formula. On the record, Zamuda said the controller's office was assuming the school district would be able to withdraw but that final eligibility depends on state aid amounts; she acknowledged the office would aim to make that determination prior to the March 15 layoff-notice deadline.
Zamuda also described a budget stabilization reserve created by local financial policy that takes 75% of certain revenue growth (for example, property transfer tax above the five-year average) and deposits it for stabilization; she said the stabilization reserve is projected to accumulate approximately $95 million. She added certain incentive reserves carry forward roughly $19 million and Recreation and Park has about $7 million in carry-forward funds.
Baselines and voter-mandated set-asides Zamuda summarized that voter-approved baselines and set-asides together amount to roughly $450 million of discretionary funds, including approximately $154 million for municipal railway operations plus $58 million for parking and traffic, about $53 million for the library, and about $115 million for children—s services. She said the hotel tax totals about $88 million with roughly $56 million budgeted in the general fund.
Charter and compliance notes Zamuda noted several charter-mandated staffing and service requirements, including a longstanding police staffing requirement of 1,971 full-duty officers that the city had not fully met in the current year but is addressing via the two-year staffing plan.
Next steps Zamuda said additional detail is available to supervisors' offices and that the item would be continued to the call of the chair. The committee moved to continue item 2 without opposition.
