Sacramento City Budget and Audit Committee Special Meeting – January 29, 2019

The Sacramento City Council, sitting as the Budget and Audit Committee, held a special meeting on January 29, 2019, from 3:03 p.m. to 4:56 p.m. in City Hall Council Chamber. The entire eight-member Council (with Councilmember Carr absent) considered a consent calendar, selected a vice chair, accepted the Comprehensive Annual Financial Report, and deliberated extensively on the Fiscal Year 2018/19 Midyear Report, including a $35 million spending plan proposed by Mayor Steinberg.

Consent Calendar

• Item 1 – 2019 Regular Meeting Schedule – Approved unanimously.
• Item 2 – FY 2017/18 Appropriation Limit Calculation – Accepted and forwarded to City Council.
• Item 3 – FY 2017/18 Measure U Sales Tax Performance Audit – Accepted and forwarded.
• Item 4 – FY 2017/18 Child Development Program Audit – Accepted and forwarded.
  All consent items were passed on a single motion (8‑0).

Public Comments & Testimony

Eleven members of the public spoke, primarily on Item 7 (Midyear Report). Key positions:

• Mike Jaske (Sacramento Area Congregations Together) – Strongly supported $1 million for women/children homeless shelters and $360,000 for restrooms at Caesar Chavez Park; urged coordination with the county.
• Khaim Morton (Sacramento Metro Chamber) – Supported the business capacity proposal.
• Robert Dresser (Mario Giobledo National Coalition of Hispanic Organizations) – Enthusiastically supported $500,000 for the FUEL Network immigration legal assistance.
• Lia Nitake (Sacramento Asian Pacific Chamber) – Supported the capacity‑building proposal for minority‑owned businesses.
• Rick Eaton (Friends of North Sacramento/Hagginwood Library) – Urged the council to advance a library project in District 2.
• Rachel Rios (La Familia Counseling Center) – Supported the FUEL Network, pop‑up youth events, and economic development.
• Ramona Landeros (Twin Rivers USD / Mutual Assistance Network) – Thanked the council for the sports complex investment in Del Paso Heights.
• Derrell Roberts (Roberts Family Development Center) – Sought $350,000 to help complete an $850,000 center renovation serving 700+ kids daily.
• Kaying Hang (Sierra Health Foundation) and Tracy Stigler (CR Health) – Supported the inclusive economy proposal.
• Mervin Brookins (Mutual Assistance Network) – Thanked the council for the Del Paso Heights investments.
• Les and Katrina Simmons (Simmons Community Center) – Expressed gratitude for the youth investment and described the need for facility upgrades.

Discussion Items

Item 5 – Selection of 2019 Vice Chair
Mayor Steinberg nominated Councilmember Eric Guerra as Vice Chair, seconded by Councilmember Jennings. Passed unanimously (8‑0).

Item 6 – FY 2017/18 Comprehensive Annual Financial Report (CAFR)
Presented by Accounting Manager Osvaldo Lopez. The city received a clean audit opinion. The FY 2017/18 year‑end results showed $11.5 million in departmental savings, $5.2 million in tax revenue exceeding budget, and a net positive result of $26.8 million, with $15 million added to the available fund balance. Accepted and forwarded to City Council (8‑0).

Item 7 – FY 2018/19 Midyear Report
Interim Budget Manager Daniel Choe presented the staff recommendation, which included $11.2 million in one‑time expenditures for core services (e.g., abandoned vehicle abatement, 311 call center improvements, park mowing cycle reduction from 14 to 7 days, and funding for women/children shelters, FUEL Network, and public safety). The report also highlighted that $10.8 million in new Measure U revenue would begin flowing in April 2019.
Mayor Steinberg then presented his “Mayor’s Budget Memo,” proposing to invest the remaining ~$24 million of total $35 million in one‑time funds into:

• $16 million for homeless services (two‑year plan leveraging state and private funds to shelter up to 800 people at a time, or 2,400 annually).
• $8 million for youth and community capacity, including:
  – $350,000 for La Familia economic development center.
  – $350,000 for Del Paso Heights Sports Complex.
  – $2 million for business and community capacity building (through CBOs and ethnic chambers).
  – $6 million rolled over for future Measure U Committee decisions.

Council members debated balancing homeless investments with core city services, parks deferred maintenance ($140.4 million citywide), traffic enforcement, and long‑term liabilities (PERS, OPEB). Councilmember Hansen expressed concerns about an over‑focus on homelessness and the lack of parks investment, but ultimately supported the motion with the expectation of further discussion. Councilmember Ashby sought assurances that ongoing core services would be prioritized in the June budget.

Key Outcomes

• Motion on Item 7: Councilmember Guerra moved to accept the staff recommendation along with the Mayor’s proposed additions, including a referred amendment (accepted by the maker) to consider an inclusive reserve policy covering both the General Fund and Measure U at 10%. Seconded by Councilmember Schenirer. Passed unanimously (8‑0).
• The Midyear Report and all related proposals will be forwarded to the full City Council for final action on February 5, 2019 (core funding) and February 12, 2019 (specific homeless investments).
• The committee will continue to develop a multi‑year Measure U investment plan, with the first advisory committee meetings to begin soon.