Budget and Audit Committee Meeting - May 7, 2024
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Budget and Audit Committee Meeting - May 7, 2024
The Sacramento City Budget and Audit Committee convened on May 7, 2024, at 11:06 a.m. and adjourned at 1:09 p.m. The committee reviewed and forwarded the FY2024/25 Proposed Budget, the Citywide Fee Schedule, and the City Auditor's Work Plan to the full City Council. Key discussion centered on closing a $66 million funding gap without eliminating filled positions, preserving core services, and addressing community concerns about fee increases, youth transit, and arts funding.
Consent Calendar
- Approved the March 26, 2024, and April 9, 2024, Budget and Audit Committee meeting minutes.
- Reviewed and forwarded the amended Department of Utilities Designated Reserve Fund Policy to the City Council for approval.
Public Comments & Testimony
- Several speakers urged the committee not to cut funding for the SMUD Museum of Science and Curiosity (MOSAC) and the Sacramento History Museum, citing their educational and economic contributions.
- A Sacramento attorney urged rejection of proposed home occupation fee increases (items 175 and 176), noting that home businesses are often owned by women and minorities, and many earn less than $10,000 annually.
- Multiple speakers (Kristen, Harlan, Pinky, Giovanna, and others) strongly opposed eliminating the "Ride Free RT" youth transit program, arguing it is vital for low-income families, reduces truancy, and benefits the entire community.
- One speaker requested transparency in how the city reduces nonprofit funding and selects nonprofits for support.
- A speaker advocated for investing in park rangers, traffic officers, and robust auditing of all nonprofits.
Discussion Items
Item 3: FY2024/25 Proposed Budget Overview
Finance Director Pete Coletto and Budget Manager Mirthala Santizo presented a $1.6 billion proposed budget that closes a $66 million funding gap without eliminating any filled positions. The gap was addressed through strategic reductions, revenue increases, and one-time savings (55% one-time, 45% ongoing). Key highlights include:
- Use of $33.7 million in citywide strategies (e.g., suspending the reserve contribution, eliminating $1 million for Ride Free RT, transferring credit card fees to users).
- Level 1 reductions ($17 million) eliminated 44 vacant positions; Level 2 reductions ($4 million) also used.
- Five-year forecast shows deficits rising to $77 million by FY2026, assuming no state HAP funding or recession.
- Mayor Steinberg noted the council could consider using $3.8 million from the FY2023/24 reserve contribution as trade-off room; he also proposed convening a meeting with school districts and RT to find a regional solution for the youth transit program.
- Councilmember Vang raised concerns about fee increases on seniors and youth programs, and urged continued funding for a language access coordinator.
- Councilmember Guerra emphasized life-altering impacts, supporting legal services for immigrants and clean air benefits of youth transit, and suggested using Measure N (tourism) funds for arts and museums.
- The committee voted unanimously to forward the proposed budget to the City Council for further consideration.
Item 4: FY2024/25 Fee Schedule
Jason Bader presented a citywide fee update adding 55 new fees, modifying 757, and deleting 19, generating $2.3 million for the general fund and $525,000 for other funds. The committee forwarded the fee schedule to the City Council for a May 14 public hearing. Councilmember Talamantes noted the city will expand the scholarship fund to mitigate equity impacts on low-income residents.
Item 5: Active Transportation Commission's Nine Recommendations
Councilmember Vang led discussion on prioritizing funding for nine recommendations from the Active Transportation Commission's 2022 Annual Report. Staff reported that several items are already in progress (e.g., work zone detour policy, quick-build bikeway program, e-bike library). Given the structural deficit, the committee voted to defer the request and direct staff to report back to the committee later with cost estimates and an update on the quick-build bikeway program and safe routes to school program.
Item 6: City Auditor's Proposed Work Plan for FY2024/25
Interim City Auditor Farishta Ahrary presented the work plan. The committee accepted the plan and forwarded it to the City Council for final approval.
Key Outcomes
- FY2024/25 Proposed Budget: Unanimously forwarded to City Council (Motion by Vang, second by Talamantes).
- Fee Schedule: Unanimously forwarded to City Council for public hearing (Motion by Guerra, second by Vang).
- Active Transportation Proposal: Motion to defer and direct staff to return with additional information on quick-build bikeway program and safe routes to school (Motion by Vang, second by Guerra).
- City Auditor's Work Plan: Unanimously accepted and forwarded to City Council (Motion by Guerra, second by Vang).
- The committee directed the City Manager to compile a list of council member trade-off requests and for the Mayor to issue a budget letter to guide deliberations.
Meeting Transcript
Good morning, everyone. The Sacramento City Council's budget and audit committee will come to order. Would the clerk please call the roll to establish a quorum? Thank you. Mayor Pro Tem Talamante. Councilmember Gatta. Councilmember Vang and Mayor Steinbring. I am here. Would everyone, everyone who can please rise? I'd like to lead us in the land acknowledgement and the pledge of allegiance. To the original people of this land, the Nissanon people, the Southern Maidu Valley, and Plains Mi Wok, Patunwinton peoples, and the people of the Wilton 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 together today in the active practice of acknowledgement and appreciation for Sacramento's indigenous people's history, contributions, 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, indivisible, with liberty and justice for all. Well, very good morning. Um to all of you, to the members of the city team who are here, I know in uh in strong showing uh to my colleagues and of course the members of the public who are here and maybe uh watching this very important proceeding. I guess you would say this is the formal start of the city council's deliberation of the 24-25 budget. And I want to begin by thanking the city manager and his team for uh doing an excellent job in presenting uh the city manager's budget. Now, I say that and I mean it, and that doesn't mean it is the final budget, because the way this process works, of course, is that we work iteratively throughout the year, and of course, we had a number of pre-budget hearings, uh hearing from uh most of the departments. The manager presents the budget, and then it is up to the city council, first through its budget and audit committee to consider that and to um pass a final budget. Now, one of the reasons why uh the manager and his team, I think did an excellent job is that they framed choices for us. They present a balanced budget, and they have transparently transparently obviously listed out the areas of cut and revenue increase because we have a deficit budget, but then they have also presented in a uh in a parallel fashion all of the solutions that they did not, and he did not include in the budget. And so we can go beyond that list, of course. We have that prerogative, but it really is set up very nicely for us to look at what the manager included in terms of solutions, what the manager did not include in terms of solutions, and then trade out in whatever way leads us to a balanced budget. And so it's framed well, and let us begin. And I know uh we have today's committee. Tonight, the full city council is going to, I believe, hear the presentation with reports from the assistant city managers. Um, not going through every department line item, but um presenting sort of the big picture proposed solutions from uh the departments. And so um what do we have here? I know this is just my opening statement. I'm just I just um I'm just getting wound up here. It's budget season. Um this is an opportunity for the members really to weigh in because it's really important. We've we're gonna hear from the departments, and we've heard from the manager. Is the members' time to really really weigh in on what you see, what you like, and what you may want to change. All right. Um let's start with the consent calendar. I'll move approval, Mr. Mayor. Moved approval. Is there a second? Second, is there public testimony? There's no public testimony. All right, all in favor, please say aye. Aye, oppose, abstain. Now we get to the discussion calendar, and uh let me repeat my opening statement. Mayor again. I just want to uh echo that. Thank you for uh setting the the table here for the kickoff, really the official kickoff of our budget discussions.
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