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Except as otherwise expressly provided in this Charter, the City and County and its commissions shall have the authority to incur and refund indebtedness as provided by and pursuant to the general laws of the state as such laws are in force at the time any indebtedness is created or refunded by the City and County or its commissions. The Controller certifications required by Sections 3.105 and 9.113 shall not apply to any indebtedness, financing leases or agreements for an exchange of payments based upon interest rates which are entered into in connection with indebtedness or financing leases, provided that the Controller first certifies that sufficient unencumbered balances are expected to be available in the proper fund to meet all payments under such obligations as they become due.
(Amended June 2, 1998)
(Added June 2, 1998; repealed November 2002)
The Port Commission shall have the exclusive power to perform or accomplish issuance of revenue bonds for Port-related purposes, as provided in Section B7.305 of this Charter.
(a) Unused and unencumbered appropriations or unencumbered balances existing at the close of any fiscal year in revenue or expense appropriations of the City and County for any such fiscal year, but exclusive of revenue or money required by law to be held in school, bond, bond interest, bond redemption, pension, trust, utility or other specific funds, or to be devoted exclusively to specified purposes other than biennial appropriations, and together with revenues collected or accruing from any source during such fiscal year, in excess of the estimated revenue from such source as shown by the biennial budget and the appropriation ordinance for such fiscal year, shall be transferred by the Controller, at the closing of such fiscal year, to the General Fund.
(b) In the event that funds are not available to meet authorized expenditures, the Treasurer, upon the recommendation of the Controller, is authorized to transfer monies among funds held by the Treasurer in the pooled funds of the City and County which are legally available for such a purpose, except a pension fund. The Treasurer and the Controller shall set the terms and conditions of the transfer, taking into account the requirements and nature of the fund from which the transfer was made. All monies transferred pursuant to this Section shall accrue interest at not less than the then current rate of interest earned by the Treasurer on the pooled funds of the City and County. In no event shall the Controller or the Treasurer cause any transfer of monies pursuant to this Section if said transfer would be inconsistent with the terms and conditions of any outstanding bonded indebtedness of the City and County, including any of its boards or commissions.
(c) In the event the Mayor or a member of the Board of Supervisors recommends a supplemental appropriation ordinance after the adoption of the budget for any budgetary cycle and prior to the close of the budgetary cycle containing any item which had been rejected by the Mayor in his/her review of departmental budget estimates for the budgetary cycle or which had been rejected by the Board of Supervisors in its consideration of the Mayor's proposed budget for the budgetary cycle, it shall require a vote of two-thirds of all members of the Board of Supervisors to approve such supplemental appropriation ordinance.
(d) No ordinance or resolution for the expenditure of money, except the biennial appropriation ordinance, shall be passed by the Board of Supervisors unless the Controller first certifies to the Board that there is a sufficient unencumbered balance in a fund that may legally be used for such proposed expenditure, and that, in the judgment of the Controller, revenues as anticipated in the appropriation ordinance for such budgetary cycle and properly applicable to meet such proposed expenditures will be available in the treasury in sufficient amount to meet the same as it becomes due.
(e) The Board of Supervisors shall have the power to borrow money by the issuance of tax anticipation notes, temporary notes, commercial paper, or any other short-term debt instruments in the manner provided by state law or City ordinance.
(f) Biennial appropriations shall expire at the end of the budgetary cycle, and the City shall have no authority to expend funds from such appropriations unless and until the Board of Supervisors adopts a new budget, interim budget, or supplemental appropriation for such expenditures.
(g) No City monies shall be drawn from the treasury of the City and County, nor shall any obligation for the expenditure of any money be incurred, except in pursuance of appropriations or transfers made as provided in the Charter and the Administrative Code.
(Amended November 2003; Amended by Proposition A, Approved 11/5/2009)
(a) Beginning January 1, 2015, there shall be a City Rainy Day Reserve ("the City Reserve") and a School Rainy Day Reserve ("the School Reserve"), collectively referred to as the Rainy Day Reserves.
Allocations to the Reserves
(b) If the Controller projects that total General Fund revenues for the upcoming budget year will exceed total General Fund revenues for the current year by more than five percent, the budget shall allocate the anticipated General Fund revenues in excess of that five percent growth (the excess revenues) as follows:
1. 50 percent of the excess revenues to the Rainy Day Reserves, with 75 percent of that amount deposited to the City Reserve and 25 percent to the School Reserve;
2. 25 percent of the excess revenues to capital and other one-time expenditures; and,
3. 25 percent of the excess revenues to any lawful governmental purpose.
(c) Total monies in the City Reserve may not exceed 10 percent of actual total general fund revenues, as stated in the City's most recent independent annual audit. The budget shall allocate excess revenues that would otherwise be allocated to the City Reserve above the 10 percent cap instead to capital and other one-time expenditures.
(d) The Mayor and the Board of Supervisors may, at any time, appropriate monies from the capital and other one-time expenditures allocation for capital projects or for expenditures such as, but not limited to, acquisition of equipment or information systems.
(e) The Mayor and the Board of Supervisors may, at any time, appropriate monies from the general purpose allocation for any lawful governmental purpose.
Withdrawals from the City Reserve
(f) If the Controller projects that total General Fund revenues for the upcoming budget year will be less than the current year's total General Fund revenues, or the highest of any other previous year's total General Fund revenues, the budget may appropriate up to 50 percent of the current balance in the City Reserve, but no more than the shortfall in total General Fund revenues, for any lawful governmental purpose in the upcoming budget year.
1. If the trigger for withdrawals from the City Reserve was not met in the current year, the Controller shall calculate the shortfall for the upcoming budget year by subtracting the total projected General Fund revenues for the upcoming budget year from the total projected General Fund revenues for the current year.
2. If the trigger for withdrawals from the City Reserve was met in the current year, the shortfall shall be calculated by subtracting the total projected General Fund revenues for the upcoming budget year from the highest of any previous year's total General Fund revenues, plus two percent for each intervening year.
(g) If the City made appropriations from the City Reserve in the current year and in the immediately preceding budget year pursuant to subsection (f), the City is not required to allocate any anticipated excess revenues to the Rainy Day Reserves or to capital and other one-time expenditures for the upcoming budget year.
(h) If the Controller projects that the Consumer Price Index for the upcoming budget year shall exceed the index for the current year by more than five percent, the trigger for allocations to the Reserve as set forth in Subparagraph (b) above shall instead be the percentage of growth in the index plus two percent. If the Controller projects that the Consumer Price Index for the upcoming budget year shall be less than the index for the current year, the trigger for withdrawals from the Reserve as set forth in Subparagraph (f) above shall instead be the percentage of negative growth in the index. The Controller shall use for these purposes the San Francisco All Items Consumer Price Index for All Urban Consumers (CPI-U), or its successor, as reported by the U.S. Department of Labor's Bureau of Labor Statistics.
(i) If the Board of Supervisors or the voters take an action that changes the amount of total General Fund revenues in any material manner, such as reducing a tax or imposing a new fee, the revenue changes caused by that action will not be counted as part of the triggers for allocations to the Rainy Day Reserves or withdrawals from the City Reserve during the year or years in which the action is first implemented.
(j) In conjunction with the year-end close of the budget, the Controller shall reconcile the revenue projections triggering any budgeted allocations to or withdrawals from the Rainy Day Reserves with actual revenue results, as stated in the City's independent annual audit for the years in question, and rebalance the Rainy Day Reserves, the capital and other one-time expenditures allocation, and the general purpose allocation accordingly.
Withdrawals from the School Reserve
(k) If the San Francisco Unified School District ("SFUSD") projects that inflation-adjusted per-pupil discretionary revenues for the upcoming fiscal year will be reduced and that a significant number of layoffs would be required to balance its budget, the SFUSD Board of Education may approve, by majority vote, a draw from the School Reserve of up to 50 percent of the current balance in the School Reserve but no more than the shortfall in inflation-adjusted per-pupil discretionary revenues, as determined by the SFUSD Board of Education. Such action shall be transmitted to the Controller, who upon certification of the SFUSD calculation shall transfer such funds to the SFUSD. For purposes of this Section, allocations provided from the City to the SFUSD through the Public Education Enrichment Fund shall not be deemed discretionary.
(l) If the triggers for withdrawal from the School Reserve were met in the current fiscal year, the decline in per-pupil discretionary spending shall be calculated by subtracting the inflation-adjusted per-pupil discretionary revenues for the upcoming budget year from the highest of any previous year's inflation-adjusted per-pupil discretionary revenues.
(m) In conjunction with the year-end close of the SFUSD budget, the SFUSD shall reconcile the revenue projections triggering a budgeted withdrawal from the School Reserve with actual revenue results, as stated in the SFUSD's independent audit for the years in question. The SFUSD shall rebalance the withdrawal allocation and, if necessary, return funds required to rebalance the Reserve.
(n) Given possible changes in State school funding formulae, changes in local demographic or economic conditions, or other factors, the SFUSD may for a given fiscal year draw from the School Reserve amounts in excess of the limitations in subsection (k) or to offset revenue losses that are less than those that would otherwise permit a draw under subsections (k) and (l). Such action shall become operative for that fiscal year following approval of two-thirds of the SFUSD Board of Education and certification by the Controller of the Board of Education's action.
Transition to New Reserve Structure
(o) No later than January 1, 2015, the Controller shall transfer 50 percent of the Rainy Day Reserve existing as of that date to the City Reserve and 50 percent to the School Reserve.
Two-Year Budget
(p) The Controller shall promulgate procedures modifying the Rainy Day Reserve system, as necessary, to be consistent with the City's adoption of biennial rather than annual budgets.
(Added November 2003; amended November 2009; November 2014)
Each departmental budget shall describe each proposed activity of that department and the cost of that activity. In addition, each department shall provide the Mayor and the Board of Supervisors with the following details regarding its budget:
1. The overall mission and goals of the department;
2. The specific programs and activities conducted by the department to accomplish its mission and goals;
3. The customer(s) or client(s) served by the department;
4. The service outcome desired by the customer(s) or client(s) of the department's programs and activities;
5. Strategic plans that guide each program or activity;
6. Productivity goals that measure progress toward strategic plans;
7. The total cost of carrying out each program or activity; and
8. The extent to which the department achieved, exceeded or failed to meet its missions, goals, productivity objectives, service objectives, strategic plans and spending constraints identified in subsections (1) through (6) during the prior year or prior budgetary cycle.
Departmental budget estimates shall be prepared in such form as the Controller, after consulting with the Mayor, directs in writing.
(Amended by Proposition A, Approved 11/5/2009)
It shall be the duty of each officer, department head, board or commission ultimately responsible for the management of each department to certify to the Mayor and the Board of Supervisors his/her commitment to perform the programs and activities with specified levels of performance for specified costs as outlined in the budget description and other information required by Section 9.114.
Within 30 days of the Controller's issuance of the combined annual financial report of the City and County, the Controller shall report to the Mayor and Board of Supervisors regarding the extent to which each department in the prior fiscal year has recovered additional revenues measured by the difference between projected and experienced revenues. It shall be City policy for the Mayor and Board of Supervisors, upon receipt of this report, through the supplemental appropriations process to give serious consideration to rewarding those departments that the Controller has certified pursuant to this section exceeded their revenue goals or met or exceeded departmental operational goals expending less than has been projected in the budget.
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