Section 54953G added by Assembly Bill 361, which allows the city to use teleconferencing and to provide the public an opportunity to address the city council committee via a call-in option or an internet-based service option.

The committee members will be participating via Zoom, and no members of the public will be in attendance at the meeting in the interest of public health and safety.

In addition, this meeting is being televised and live streamed on the city's website, and the committee liaison has made arrangements for the public to comment using the Zoom webinar platform.

We appreciate the public's cooperation.

Councilmember Montgomery Step.

I don't think I see her yet.

Councilmember Campillo.

Here.

And I am also here.

Each committee member is attending virtually.

Also on the virtual meeting is Jeff Quarr, our interim independent budget analyst, Charles Monica from the IBA, Matthew Vespy, our Chief Financial Officer, Britney Bailey from the Mayor's Office, and Brett Bartelato from the City Attorney's Office.

The public may view the meeting on public television on City TV channel 24 for Cox Communication and Spectrum or Channel 99 for ATT Uverse.

Or via the meeting, view the meeting online by going to the City Council Committee's homepage at San Diego.gov and selecting the City TV Live Webcast blue button on the right-hand side of the page.

Or he will read out the last four digits of your phone number if you've called into the meeting.

If you join the Zoom webinar by computer tablet or smartphone, you'll receive a pop-up notice to select to unmute your device.

If you have called into the meeting by cell phone or landline, press star six on your phone to unmute yourself.

A quorum is now present, and I'll note that Councilman Montgomery Step is here as well too.

Before we get into it, just a little housekeeping on the order of items.

Given that we have so many of our city team here this morning.

Thank you, Chair, and uh good morning, members of the committee.

Um, so this morning we've got three important uh budget related items in front of you.

Uh the first of which is our first quarter budget monitoring report for fiscal year 2022.

Uh, this report, somewhat limited in scope, but really focuses on our major revenue projections as well as some of our key expenditures.

Um really important report this year, particularly because when developing our revenue budgets for uh fiscal year 2022, we did so in the spring when there were still a lot of unknowns around COVID and the impacts of our revenues.

What you'll see is some positive news, some some pretty good increases in our revenues.

Um, really, though, that's being driven by the activity we saw uh in our revenue towards the tail end of uh the last fiscal year after we had developed these budgets.

This report also is very important as these projections.

This information really serves and feeds in as the base of our five-year outlooks that you'll see today, too, which cover fiscal years 23 through 27, both for the general fund and for public utilities department's enterprise funds.

Um said, you'll see that for these outlooks, there is a slightly uh a different approach than we've taken in previous years.

Uh, we've really narrowed the scope of um additional services that we would uh the mayor has prioritized to address in the coming years to really getting back to some of the basic core services uh that the city should be providing.

You also see that we've uh included salary adjustments, salary inflation uh beyond what we have have uh for existing MOUs with our bargaining units, um, really acknowledging the importance and the need uh for our workforce.

Uh that's a that's something new from previous years, but we see it as a really important improvement.

Um, and with that, uh this these reports, they also really they start the fiscal year 23 budget process, right?

They provide the first opportunity uh for the public to see where we're expecting 23 and beyond to be and provide an opportunity for both the city council and the public to provide input as we start uh the budget processes uh for fiscal year 2023.

So with that, I'm gonna turn it over to Chris Purcell, uh Financial Operations Manager in the Department of Finance to cover our first quarter report and then on from there uh to cover uh the other two uh reports, the two outlooks.

So thank you, Chair, for the time.

Thank you, Mr.

Esse.

Real quick, Chris, before you begin, I just kind of uh note one thing.

Uh the public comment period for this item is now open.

If you've already joined the Zoom webinar online or by phone, please raise your hand if you wish to speak.

If you're watching on City TV or the live stream online and would like to call into the meeting to speak, please call 1669-254-5252 when prompted input webinar ID 161-771-9874 pounds.

So raise your hand to speak, select the raise your hand button or press star nine.

Apologize, uh Chris, but now uh you can begin when ready.

Thank you.

Uh good morning, uh committee chair Kate and Committee members.

I am Chris Purcell, Financial Operations Manager with the Department of Finance.

And with me is Trisha Tackey, principal accountant.

We are here today to present the fiscal year 2022 first quarter budget monitoring report.

This report is put together in collaboration with city departments and is based on three months of actual activity.

The main focus of the report is on the major general fund revenues with select updates on some departmental revenues, updates on the American Rescue Plan Act, an analysis of public safety overtime projections, and some discussion on the general fund reserves and non-general fund reserves.

The focus of this presentation will be on the general fund.

We will be able to provide a more wide-ranging report, including departmental expenditures when we return with future quarter monitoring reports.

Consistent with the revenue base used in the development of the city's five-year outlook that will be heard later.

This table shows that we are currently projecting major general fund revenue to exceed budget by 18.3 million by fiscal year end.

This includes increases in sales tax and TOT with an offsetting reduction from budget for property tax.

Property taxes projected to end the fiscal year, 10.2 million below budget.

And this is primarily due to three main factors.

5.8 million of the decrease is tied to an adjustment to the growth rate from 4.5% that was included in the adopted budget to 4% that's included in the projections.

This is to account for a reduction in receivables of the 1% property tax based on the recent apportionment report provided by the county, and due to CPI coming in lower than anticipated, resulting in a smaller increase in assessed values for those homes that were not sold or reassessed.