So for operating expenses the drivers of our future expense are primarily labor, a lot of it is what we have and paying for increases in fringe benefit costs and cola adjustments, et cetera, and the other part is from adding new resources and positions that we believe are critical to meet operating efficiencies, protect our revenue and respond to who we are today. Also in prior years we had that noncash adjustment for pier 70, the reduction of that environmental liability that we dont project having into the future. So this graphic just shows the main drivers, personnel expenses in the dark blue, charges for other city departments, other expenses, professional services. So Expense Growth is projected to outpace Revenue Growth resulting in a negative net income position throughout the projected period. Atz i said, it still shows we can cover operating and almost get to renewal, but its really the grants and contributed capital line again that small line starts at 25. 8 million out to 1.
And the same with the would you accept this recommendation by the budget analyst . The department of Emergency Management . Yes, supervisors, department of Emergency Management agrees with those recommendations. Well be very happy to come back and provide an update. Thank you so much. You know, i know that this has come back to the Budget Committee several times at this point. I think its great that were updating our radio system that is out of date and, you know, probably is not as efficient as it could be. Also doesnt currently comply with fcc standards. Im glad were able to do this finally. But i still continue to have a lot of questions. We have three different potential Radio Systems right now. One is, of course, proposed regional bay web motorola system which is no longer and is now being reviewed by, you know, by first net which is now a Different National single wireless Public Safety network. A lot of questions about that. Of course we dont have all the answers to that because
More than cpi i think in some cases it certainly would and in some cases we dont know. The individual leases which will expire in the twoyear budget window we dont individually address what might or might not happen to thep. As a general assumption we assume those leases will continue on either under the current tenants name or be released under similar terms to someone else. I am a little wary about turning the dial up in aggressiveness because we want to make sure we dont overbudget and have to do midyear. Maybe ill ask the question in a different way. Is more coming off lease or expiring than it has in the past . I hear what you are saying in terms of actual versus budget, its been very close, but if a higher percentage is coming on scream for renewal or exploration, then that will change your forecast. I appall apologize, we look at how much revenue is still under contract in the near future. We can provide you with that analysis. So you do have a system in place to evaluate these
Granularity of forecasts, our budget forecast has been within 2 percent and the methodology we have kept true in prior periods. Where i was a little too conservative was the parking forecasts and based on conversations we have had in former years i got a little more aggressive and hopefully we will see a tighter performance of budgity to actuals in the future. The question would be the leases. Did we have some leases executed a long time ago and even with cip increases if they were to come online today would the jump be a little bit more than cpi i think in some cases it certainly would and in some cases we dont know. The individual leases which will expire in the twoyear budget window we dont individually address what might or might not happen to thep. As a general assumption we assume those leases will continue on either under the current tenants name or be released under similar terms to someone else. I am a little wary about turning the dial up in aggressiveness because we want to
Too the way the fee works, the fees are due at construction. Which is generally the first major permit you get. Thats due for all projects except for those that have the deferral program. Thank you. Commissioners, sugaya . I think thats some of whats reflected in the table of your last page because you have in rin con monies coming in. So that must account for the second tower thats being constructed now and others. Trying to think the boundary between rin con and transit is it folsom . I believe it is folsom. Im not too sure. We are working on integrating the improvements in rin con. Some of the other projects and this captures the fees also. Yes. Okay. Commissioner borden . Just two small questions. Because the emerald park was given to the city, does that then move around money anticipated for the park and where does that money go . Thats correct. The revenue projections you are showing was generated from the park and it will be placed forward than in 2 years. In the cases of the va