DBI says $21M is available for appropriation out of $100M cash as fee study looms

The San Francisco Department of Building Inspection (DBI) told the Building Inspection Commission on Nov. 16 that it holds about $100 million in cash but only roughly $21 million is available for appropriation after prior commitments, and that without new revenue or expenditure changes the available balance could be exhausted around fiscal year 2025.

"Right now, we have a little bit over a $100,000,000 in cash, but only $21,000,000 available for appropriation," Deputy Director of Administration Alex Koskinen said as he walked commissioners through early fiscal‑year 2023 numbers. Koskinen said roughly $79 million of the cash has already been committed to continuing projects and prior‑year encumbrances.

DBI reported budgeted revenue of $85.9 million and an expenditure budget of $91.2 million for FY23; year‑to‑date revenue and expenditures were tracking variably compared with last year. The department’s financial presentation noted citywide cost pressures — including a 5.25% cost‑of‑living adjustment approved for staff — as a main driver of higher personnel costs.

Commissioners pressed staff for clearer, plain‑language reporting on the department’s fund balance, encumbrances and carry‑forwards. Koskinen said the department will provide a more detailed breakdown and incorporate projection columns into future presentations so the commission can track monthly performance against the budget.

Public commenter Jerry Dratler, a retired chief financial officer, urged DBI to separate the use of prior‑year reserves from current‑year revenue in its statements. "It is incorrect to record the use of prior year reserves as current year revenue because it's confusing," Dratler said, recommending a simple schedule that shows current surplus, commitments and the remaining balance.

DBI officials said the forthcoming fee study — postponed to December at the commission’s request — will be a major component of the department’s strategy to increase revenue and avoid drawing down reserves to unsustainable levels. The commission voted to continue the fee‑study items to the December meeting to allow more time for staff and commissioners to review materials.

Next steps: DBI agreed to provide a more detailed operating‑fund presentation in January that will include a fund‑balance history, carry‑forward detail and projected usage over a two‑year horizon; the fee‑study discussion was continued to the commission’s December meeting.