OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Budget and Audit Committee Special Meeting – May 11, 2021

Budget and Audit Committee — Tuesday, May 11, 2021
BodySacramento, California
SessionBudget and Audit Committee
DateTuesday, May 11, 2021
StatusFILED
Video Record
Meeting Thumbnail
⇩ GET FROM SOURCE

STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE

Transcript — Verbatim
0:28

Mayor staff is ready when you are.

0:31

Thank you very much.

0:32

Um morning, everyone.

0:36

Uh the meeting of the City of Sacramento City Council budget and audit committee will come to order.

0:42

Would the clerk please call the role to establish quorum?

0:45

Councilmember Gata.

0:47

Here.

0:47

Councilmember Jennings.

0:49

Here.

0:50

Councilmember Vang.

0:52

Here and Mayor Steinberg.

0:54

I am here.

0:56

Welcome to the members, to the staff and uh to the members of the public.

1:00

Do we do the Pledge of Allegiance for committee hearings?

1:03

I forgot.

1:05

Not typically, but we can.

1:07

No, no, it's okay.

1:08

We'll we'll save it for the we'll save it for the uh the afternoon and evening meetings.

1:14

Thank you so much.

1:15

Uh today we um have a very important meeting where we uh the staff will introduce uh the proposed 2021-2022 budget.

1:27

Um do I turn it over to um our director finance down home?

1:31

So, Mr.

1:32

Mayor, we have two items on the consent calendar, and I have no calls on either item.

1:38

Is there a motion?

1:39

Uh any questions on the consent calendar.

1:44

Uh Mr.

1:45

Mayor, this is uh uh Eric.

1:48

I'll move the uh consent calendar also with uh direction for um city auditor to uh come back and discuss the outreach efforts on the whistleblower hotline at a different uh um uh at a different uh budget or not a committee.

2:05

Okay.

2:07

So mayor, I will second that motion.

2:09

Thank you so much.

2:10

Uh is there public testimony, madam clerk on the consent calendar?

2:14

There is not public testimony.

2:16

Okay, then let's call the roll.

2:18

Councilmember Gatta.

2:20

Hi.

2:21

Councilmember Jennings.

2:24

Councilmember Vang.

2:26

Yes, and Mayor Steinberg.

2:28

Yes, calendar passes.

2:30

I was so excited about the proposed budget overview that I started with that.

2:34

So uh we get to it.

2:37

I'll turn it over to our director of finance on roll.

2:40

Well, thank you, Mayor.

2:43

Good morning.

2:44

It's an unusual time to see you guys in the morning.

2:46

And uh good morning.

2:47

Um we're ready to talk about the budget today.

2:50

So as mayor stated, I'm Don Holmes, Director of Finance, good morning, Mayor and Committee members, and all of the staff that have attended this morning.

2:57

The proposed budget was released on April 21st and is attached to this report and available on the city's website.

3:04

Um, the proposed budget is balanced and totals 1.3 billion dollars from on all funding sources.

3:10

This is actually almost the exact same budget uh dollar we had in the current year.

3:16

We're also at a 1.3 billion dollar budget.

3:19

Um fund makeup has changed a little, but it's pretty much uh status quo budget in many ways.

3:27

Oh, I am not.

3:28

I better share my screen.

3:30

Sorry.

3:46

Yes, it looks good.

3:48

Thank you.

3:49

All right.

Discussion Breakdown — Share of Meeting
Budget and Finance███████████████████████████████████████39%
Public Comments███████████████15%
Immigration Policy███████7%
Arts And Culture████4%
Child Care████4%
Racial Equity Committee████4%
Food Deserts███3%
Solid Waste███3%
Pending Litigation███3%
Summary of Proceedings

Budget and Audit Committee Special Meeting – May 11, 2021

The Sacramento City Council Budget and Audit Committee met on Tuesday, May 11, 2021, at 10:04 a.m. via teleconference to review the proposed FY2021/22 budget, fee schedule, cannabis monitoring report, and auditor reports. All four committee members (Mayor Darrell Steinberg, Councilmembers Eric Guerra, Rick Jennings, and Mai Vang) were present.

Consent Calendar

  • Item 1 & 2: Accepted the City Auditor’s Whistleblower Hotline Activity Report for October 2020 – March 2021 and the Auditor’s Activity Report for the 3rd Quarter of FY2020/21. Both were forwarded to City Council for final approval. Motion passed unanimously (4-0). Councilmember Guerra also requested the Auditor report back on whistleblower hotline outreach efforts.

Public Comments & Testimony

  • Item 03 – Proposed Budget: Eleven callers addressed the committee.
    • Alison Cagley (Friends of Sacramento Arts) urged approval of $2.464 million for the Creative Edge program, emphasizing arts education and recovery.
    • Carol Rogers (Moms Demand Action) expressed disappointment that Advanced Peace was not in the budget and called for sustained funding for community-based violence intervention.
    • Nicole Zanardi (CRLA Foundation) supported continued $500,000 funding for the Fuel Network (immigration legal services), noting ongoing need from Trump-era policies and COVID backlog.
    • Ernest (SAC State) thanked the committee for supporting the African community through Fuel Network.
    • Joe Cardillo (District 4) urged reducing the police budget by $30 million and moving funds to the Department of Community Response, citing liability costs and moral imperative.
    • Brittany Inyeto (Giffords Law Center) advocated for Advanced Peace funding, citing a 14.3% decrease in gun homicides in AP zones and a rise in gun victimizations (over 333% increase in 2021).
    • La Familia (District 5) expressed support for expanded Fuel Network funding.
    • Marcus Tang (CRLA Foundation) supported $500,000 for Fuel Network, noting critical need for immigrant communities.
    • Liv Moe (Verge Center for the Arts) supported Creative Edge funding, highlighting the creative sector’s slow recovery.
    • Kate Scott (District 4) supported gun violence reduction programs and Councilmember Valenzuela’s proposal to shift funds from police.
    • Keon Bliss (District 4) called for reallocation of police funds to youth and community investments, calling the budget a “moral document.”
    • Tony Tinker (Center for African Peace and Conflict Resolution) requested continued Fuel Network funding, noting work with African immigrants.
    • Brenda Ruiz (Sacramento Food Policy Council) requested establishment of a food systems fund and investment in sustainable food access.
  • Item 05 – Cannabis Monitoring: One caller, Brandon Lewitt (Sacramento Grow Green), supported creating a staff position for cannabis education and outreach to youth.

Discussion Items

  • Item 03 – FY2021/22 Proposed Budget Overview

    • Finance Director Dawn Holm presented a $1.3 billion balanced budget (status quo compared to current year). Key points:
      • General Fund and Measure U revenues are balanced, using a $5.5 million mid-year reserve.
      • Property taxes growing at 4% (despite state-imposed 1% cap); sales tax up 7% (general fund) and 14% (Measure U); cannabis business tax up 20% to $20 million.
      • Department revenues written down by $4.5 million (general fund) and $4.5 million (other funds) due to pandemic closures.
      • Community Center and Parking funds face $3.4 million shortfall in FY21-22 and projected $18.8 million deficit through 2025.
      • Budget includes $3 million for respite centers, $2.6 million for Creative Edge, $2.5 million for North Sacramento Library, $1 million for participatory budgeting, and 18 new positions (16 general fund, mostly reimbursed).
      • Measure U funding reorganized programmatically; public safety subtotal highlighted.
      • City Manager Howard Chan added $500,000 for the Fuel Network (Family Unity, Education, and Legal services) for 12 months, with potential to shift to ARP funds.
    • Councilmember Guerra requested a report on claim verdicts and settlements; risk manager Patrick noted large verdicts in YIPSE and Public Works departments.
    • Councilmember Guerra raised concerns about solid waste operations, zero-emission vehicles, workforce development, child care (Fourth R program), and Advanced Peace funding.
    • Councilmember Jennings emphasized transparency on violence prevention funding ($1.4 million set aside) and praised staff for a status-quo budget with less red ink.
    • Councilmember Vang called for a racial equity analysis of the budget, asking whether marginalized communities benefit. She urged investment in YIPSE and the Department of Community Response, suggesting reallocation from police.
    • Mayor Steinberg highlighted Exhibit 5B, showing $119.6 million in additional investments since November 2018 (Measure U second half-cent) in inclusive economic development, youth, housing, and homelessness (excluding CARES funds). He called the budget a “culture change” and emphasized continued progress.

  • Item 04 – FY2021/22 Master Fee Schedule

    • Presented by Jason Bader (Finance). 178 fee changes: 30 new, 132 modified, 16 deleted, affecting 8 departments. Net revenue increase of $3.6 million to general fund and $109,000 to other funds. Over 90% of changes stem from Solid Waste Authority dissolution ($3.1 million) and new fees for North Natomas Community Center Aquatics Complex. Motion passed unanimously (4-0) to forward to City Council for public hearing.

  • Item 05 – Continuous Cannabis Monitoring Report

    • City Auditor’s report accepted. Councilmember Guerra moved to accept and direct staff to convene a stakeholder group to draft an RFP for middle school substance abuse education using accumulated cannabis education funds. The City Manager’s office noted plans to use some funding for a new full-time education and outreach position in the Office of Cannabis Management. Motion passed unanimously (4-0); report forwarded to City Council.

Key Outcomes

  • Consent Calendar (Items 1 & 2): Approved and forwarded to Council (4-0). Councilmember Guerra requested a future report on whistleblower hotline outreach.
  • Item 03 – Proposed Budget: Motion passed (4-0) to forward the FY2021/22 Proposed Budget to City Council for consideration, with direction to include the $500,000 Fuel Network allocation and to bring forward identified issues (e.g., Advanced Peace, workforce, child care) during council hearings. Councilmember Guerra also asked for a report on claim verdicts and settlements.
  • Item 04 – Master Fee Schedule: Approved and forwarded to Council (4-0) for a public hearing.
  • Item 05 – Cannabis Monitoring: Accepted and forwarded to Council (4-0) with direction to create a stakeholder group for youth substance abuse education.
  • Next Steps: Budget hearings continue: May 18 (consolidated departments), May 25 (police, fire, YIPSE), June 8 (Budget and Audit), June 15 (Council adoption).
  • Meeting Adjourned at 11:43 a.m.

Meeting Transcript

Mayor staff is ready when you are. Thank you very much. Um morning, everyone. Uh the meeting of the City of Sacramento City Council budget and audit committee will come to order. Would the clerk please call the role to establish quorum? Councilmember Gata. Here. Councilmember Jennings. Here. Councilmember Vang. Here and Mayor Steinberg. I am here. Welcome to the members, to the staff and uh to the members of the public. Do we do the Pledge of Allegiance for committee hearings? I forgot. Not typically, but we can. No, no, it's okay. We'll we'll save it for the we'll save it for the uh the afternoon and evening meetings. Thank you so much. Uh today we um have a very important meeting where we uh the staff will introduce uh the proposed 2021-2022 budget. Um do I turn it over to um our director finance down home? So, Mr. Mayor, we have two items on the consent calendar, and I have no calls on either item. Is there a motion? Uh any questions on the consent calendar. Uh Mr. Mayor, this is uh uh Eric. I'll move the uh consent calendar also with uh direction for um city auditor to uh come back and discuss the outreach efforts on the whistleblower hotline at a different uh um uh at a different uh budget or not a committee. Okay. So mayor, I will second that motion. Thank you so much. Uh is there public testimony, madam clerk on the consent calendar? There is not public testimony. Okay, then let's call the roll. Councilmember Gatta. Hi. Councilmember Jennings. Councilmember Vang. Yes, and Mayor Steinberg. Yes, calendar passes. I was so excited about the proposed budget overview that I started with that. So uh we get to it. I'll turn it over to our director of finance on roll. Well, thank you, Mayor. Good morning. It's an unusual time to see you guys in the morning. And uh good morning. Um we're ready to talk about the budget today. So as mayor stated, I'm Don Holmes, Director of Finance, good morning, Mayor and Committee members, and all of the staff that have attended this morning. The proposed budget was released on April 21st and is attached to this report and available on the city's website.

SUMMARIZED BY OPENPUBLICA AI
TRANSCRIPT VIA PUBLIC VIDEO
openpublica.com