Sacramento Budget and Audit Committee Meeting - March 26, 2024
STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE
Sacramento Budget and Audit Committee Meeting - March 26, 2024
The Budget and Audit Committee met on March 26, 2024, at 11:00 AM in the Sacramento City Hall Council Chamber. The committee reviewed a $66 million general fund budget deficit for FY 2024/25, received updates on a citywide efficiency study, and discussed ongoing budget reduction strategies. Members heard a correction to the HAP5 funding allocation and expressed positions on various cost-saving proposals, including solid waste contracting and utility fee studies.
Consent Calendar
- Item 1 – City Auditor’s Recommendation Follow-Up Report (File ID: 2024-00167): The committee passed a motion to accept the report for the six-month period ending December 31, 2023, and forwarded it to the City Council for approval. Vote was unanimous (4-0).
Discussion Items
- Item 2 – Update to the 2020 Citywide Innovation and Efficiency Assessment (File ID: 2024-00628): Finance Director Peter Coletto presented the status of 39 recommendations from the Management Partners study: 17 fully implemented, 9 partially implemented or in process, 10 not recommended due to adverse financial or service delivery impacts, and 3 requiring further council action. Discussion focused on potential franchise fee from solid waste contracting (estimated in the millions but not a game-changer) and a SMUD franchise fee requiring state legislation (Councilmember Guerra suggested discussing with SMUD first). Vice Chair Talamantes opposed contracting out solid waste and removing binding arbitration. Staff noted that a comprehensive fee review is underway for cost recovery.
- Item 3 – Fiscal Year 2024/25 Budget Development Update (File ID: 2024-00632): The committee received a detailed update on the budget gap. The original $66 million gap was reduced to $58.6 million after applying $7.4 million in one-time FY 2023 savings. Staff corrected an error in the staff report: the city’s HAP5 allocation is $27.1 million (80% for sheltering and related services ($21.7 million), 20% for homelessness prevention and permanent housing ($5.4 million)), all fully programmed. A vacancy analysis showed an average 3% labor savings, mostly from non-safety departments; public safety departments used overtime to offset vacancies. Departments submitted 250 reduction strategies totaling $85.3 million (approximately $15 million in revenue increases and $60 million in expense reductions), with 369 FTE impacts. Staff emphasized that no filled positions will be eliminated in the proposed budget. Councilmember Vang requested equity lens details; Assistant City Manager Leyne Milstein noted a racial equity tool pilot for three departments, with a deeper equity presentation scheduled for the April 30 Racial Equity Committee. Mayor Steinberg highlighted that combining low- and moderate-impact ongoing reductions ($43 million) with one-time resources could cover a significant portion of the deficit without layoffs.
Key Outcomes
- Item 2: Received and filed. Staff will provide further quantification of savings from implemented efficiency recommendations and continue to track progress.
- Item 3: Received and filed. Next steps include release of the full reduction list on April 9, 2024, the proposed budget release the week of April 29, and budget hearings beginning May 7, 2024. An unfunded liabilities review will be presented on April 9.
Meeting Transcript
Good morning, everyone. Uh, the Sacramento City Council's budget and audit committee will please come to order. Would the clerk call the role to establish a quorum? Thank you. Councilmember Talamantes. Councilmember Getta. Here. Councilmember Vang. And Mayor Steinberg. I am here. Do we do the land acknowledgement for the uh committee meetings? Why don't we do the land? Let's do it. The land acknowledgement, please. Uh Councilmember Vang, and I'd be happy to do the Pledge of Allegiance. Sounds great. Rise for the opening acknowledgement in honor of Sacramento Indigenous Peoples and Tribal Lands. To the original people of this land, the Nissanon people, the Southern Maidu, Valley and Plains Mewak, Putwin and Wentu Peoples, and the people of Walton Rancheria, Sacramento's only federally recognized tribe. May we acknowledge and honor the Native people who came before us and still walk beside us today on these ancestral lands by choosing to gather today in the act of practice of acknowledgement and appreciation for Sacramento Indigenous Peoples, history, contribution, and lives. Thank you. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands. One nation under God is both liberty of justice for all. All right. Well, a very uh good morning to you. Uh this is uh another in our series of very important meetings as a city council committee around the city's 2425 FY25 budget. And as we know, uh we have some challenges. They are not insurmountable challenges by any means. And today we're gonna further discuss and refine the scope of those challenges and what some of our options might be. But before we get to that, let's uh take up the consent calendar and ask uh if there's a motion. Move the consent calendar here. Moved and seconded by councilmember Vang. I think that Councilmember. Oh, I'll second it. Thank you. I just I I intuited it, is what I did. It was intuition. Okay. Is there public testimony? I have no speakers on the consent calendar. All right. All in favor, please say aye. Aye, oppose abstain. All right. Now we move to the discussion calendar. We have two items. One is I did ask at the last uh budget and audit committee for a report back on what was uh known as the management partner study, which is the sort of efficiency study that has been done sort of serially over the last number of years about where the city might save money in ways that would not harm services and or harm working people. Um so I know there are a lot of recommendations. I don't know if your intent to go through we'll be brief. Every single one of them, but I think yes, uh summary would be great. Thank you, Mr.
openpublica.com