Budget and Audit Committee Meeting Summary – May 29, 2018

The Sacramento City Council's Budget and Audit Committee met on May 29, 2018, from approximately 2:08 p.m. to 2:33 p.m. in the City Hall Council Chamber. The committee unanimously approved the consent calendar, forwarded a late penalty and appeal fee for cannabis business permits to the City Council, and recommended adoption of the FY2018/19 Operating Budget and 2018-2023 Capital Improvement Program.

Consent Calendar

• Item 1 – Meeting Minutes: The committee approved the minutes from the May 1, 2018, Budget and Audit Committee meeting by a unanimous vote (3-0 initially, later 4-0 with Councilmember Ashby’s vote).

Public Comments & Testimony

Four members of the public testified on the FY2018/19 budget:

• Mike Jaske (Sacramento Act on Homelessness local organizing committee) requested that the budget documents presented to the City Council on June 12 include a clearer narrative on homelessness funding, showing multi-year expenditures and the city’s strategy. Mayor Steinberg engaged directly, emphasizing the city’s comprehensive approach (e.g., Whole Person Care, triage shelter, mental health funding, housing RFI). Jaske expressed support for these efforts but urged better public communication.
• Hillary Gould (administers maintenance for several PBIDs) spoke in support of the public works budget increase, citing overwhelming illegal dumping (e.g., mattresses, appliances, shopping carts) that exceeds current capacity. She praised potential funding from the Solid Waste Authority to assist public works.
• Tracey Schaal (Power and Alliance) presented cleanup statistics: nearly 69 tons of debris and trash removed from their district between 2012 and 2017. She supported Councilmember Guerra’s proposal for increased illegal dumping enforcement funding, with 100% of resources directed to public works.
• Jeff Mills (represents LD Landfill and the Lean family) strongly supported using Solid Waste Authority funds for solid waste issues, including illegal dumping, calling it an entirely appropriate use.

Discussion Items

• Item 2 – Late Penalty for Cannabis Business Permit Renewal Applications and Appeal Fee: Joe Devlin (Office of Cannabis Policy and Enforcement) presented a proposed late penalty for renewal applications submitted less than 30 days before the permit expiration date, and an associated appeal fee. The committee reviewed the item, had no questions or public testimony, and forwarded it to the City Council by a unanimous vote (3-0 initially, later 4-0).
• Item 3 – Adoption of FY2018/19 Operating Budget and 2018-2023 Capital Improvement Program: Dawn Holm (Interim Finance Director) presented recommended changes since the April 23 proposed budget, including:
  • Adding six firefighters, equipment, and an ambulance for Medic 4 (offset by revenue increases).
  • Adding two positions to the Office of Homeless Services (funded by redirected zoo attendant positions and increased Whole Person Care reimbursements, at no general fund cost).
  • Reorganizing the city manager’s office to create separate divisions for homeless services and gang prevention/intervention for transparency.
  • Clarifying the use of cannabis business taxes, permit fees, and fines for enforcement.
  • Note that Measure U expires in March 2019; the budget includes a $2.5 million transfer to the economic uncertainty reserve to maintain a 10% reserve over the forecast.
  • The general fund and all other funds are balanced for FY2018/19.
  • Adoption by the City Council is scheduled for June 12, 2018.

Mayor Steinberg described the budget as a deliberate “status quo” budget due to the upcoming Measure U renewal vote and projected out-year deficits. Councilmember Schenirer requested two future discussions: (1) a policy review of how the city funds community-based organizations (e.g., creative economy grants, Rails grants, student funding), noting that for example, $7 million in requests were received for $500,000 in creative economy grants and $11 million for $1 million in Rails grants; and (2) after hiring a youth policy manager, assess staffing for the youth commission to move it toward a policy-focused model, potentially requiring more than the current half-time position.

Key Outcomes

• Consent Calendar (Item 1): Approved unanimously (4-0).
• Item 2 (Cannabis Late Penalty and Appeal Fee): Forwarded to City Council unanimously (4-0).
• Item 3 (FY2018/19 Budget and CIP): Received and forwarded to City Council for approval on June 12, 2018, by a unanimous vote (4-0).
• The committee directed the city manager to provide information on Solid Waste Authority revenue use for illegal dumping in response to Councilmember Guerra’s request, which will be presented at the June 12 City Council meeting.