San Diego Budget Committee Meeting: FY22 Mid-Year Report and FY23 Priorities - February 2, 2022
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San Diego Budget Committee Meeting: FY22 Mid-Year Report and FY23 Priorities - February 2, 2022
The Budget and Government Efficiency Committee met on February 2, 2022, to review the FY22 mid-year budget monitoring report, establish FY23 council budget priorities, and adopt the committee's 2022 work plan. The committee approved the mid-year report recommendations and forwarded a resolution on FY23 budget priorities to the full City Council with added amendments.
Consent Calendar
- Approval of Committee Actions: Motion passed 3-0 (Councilmember Moreno absent, later joined).
Public Comments & Testimony
- Non-Agenda Public Comment: Joy Sanyata (District 3) praised the IBA's new citizens guide to the budget process and expressed readiness to meet budget challenges.
- Item 1 (Mid-Year Report): Joy Sanyata thanked staff for their work and expressed appreciation for collaboration and transparency.
- Item 2 (FY23 Priorities):
- Joy Sanyata thanked the IBA and council members for their priority memos, requesting more transparency on excess equity, ARPA, and IIJA funds.
- Susan Baldwin (Parks and Recreation Coalition) urged robust funding for parks, urban forestry, and the Parks Master Plan.
- Kiara O'Laughlin (Center on Policy Initiatives/Community Budget Alliance) supported housing stability fund, urban tree canopy, CAP implementation, youth environmental corps, and language access; added priorities for youth care, climate equity fund, ADA staffing, and excluded worker fund.
- Madison Coleman (Climate Action Campaign) thanked the council for prioritizing climate and environmental justice.
- Michael Schmidt expressed general appreciation.
- Item 3 (Work Plan): Joy Sanyata supported the work plan items, especially expanding corporate partnerships.
Discussion Items
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Fiscal Year 2022 Mid-Year Budget Monitoring Report: Rolando Chaviel (Finance Director) and Chris Purcell presented. Key points:
- General fund revenues projected $20.7M over budget; however, this includes $150M in American Rescue Plan Act (ARPA) funds used to close a structural deficit. Without ARPA, the general fund would face a $120M deficit to maintain current service levels.
- Major revenues (excluding ARPA) are $31.1M over budget, driven by sales tax ($20.3M over) and transient occupancy tax ($24.4M over), partially offset by property tax ($13.7M under).
- Expenditures projected $20.5M over budget, with overtime overruns in police ($6.9M) and fire rescue ($13.5M, offset by $6.4M in savings). Non-personnel expenditures over budget due to public liability claims and transfers.
- Vacancies: 1,787 vacant positions citywide as of November, including 354 in public utilities, 141 in engineering, 126 in DSD, 124 in library, 123 in environmental services.
- Proposed appropriation adjustments: $20.5M in increased appropriations, supported by revenue increases, including $15.1M for public liability claims and $1.5M for stormwater.
- Police Chief David Nisleit reported on overtime and neighborhood policing: 17% increase in 911 calls, rise in violent crime, and staffing shortages (1,888 sworn vs. budgeted 2,036; 37 officers in process of leaving to other agencies). Neighborhood policing division focused on homelessness outreach, with over 10,000 contacts and 3,200 shelter connections in first five months.
- Committee members questioned about vacancies (personnel director Doug Edwards described recruitment efforts), overtime drivers, and use of ARPA. Council President Ilo Rivera noted that without ARPA, maintaining services would require $120M in new revenue or cuts.
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Fiscal Year 2023 City Council Budget Priorities: Charles Monico (IBA) presented the consolidated priorities from council member memos (over 150 pages). Operating budget priorities included:
- Environmental/Climate: CAP 2.0 implementation, urban forestry (8 members), stormwater (8), mobility master plan (7), climate equity fund (6), grant writers (6), climate resilient SD (5), public power feasibility (5).
- Public Safety: Lifeguard resources (unanimous), additional fire rescue personnel (majority).
- Neighborhood Services: Library resources (unanimous), brush/whee abatement, code enforcement, parks and recreation services.
- Human Capital: Recruitment and retention, competitive pay.
- Homelessness and Housing: Housing stability fund (rental relief), senior pilot subsidy, shelters for LGBTQ and seniors.
- Youth Services: Office of Child and Youth Success, youth environmental corps.
- Accessibility: ADA compliance, internet access (SD Access for All), language translation services.
- Other: Arts and culture, Office of Labor Standards Enforcement, public banking feasibility, IBA technical support.
- Infrastructure Priorities (unanimous support): Pedestrian/bicycle safety, traffic calming, street lights, streets/sidewalks, stormwater. Also: parks, recreation, library, fire facilities, ADA infrastructure.
- Resource Priorities: Use of excess equity ($26.7M estimated), ARPA funds (remaining $300M), IIJA funds, stormwater revenue source (future).
- Council President Pro Tem Montgomery Step moved to approve with amendments adding Office of Race and Equity, Digital Equity, Commission on Police Practices, and Small Business/Nonprofit Relief. Councilmember Moreno seconded. Council President Ilo Rivera emphasized climate action as complementary to safety; requested IBA to project potential dollar amounts for revenue options.
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2022 Committee Work Plan: Chair Kate outlined the work plan, including budget review meetings (April-May), service level reports, KPI updates, vacancy reports, overtime tracking, human capital audit, grant writer positions, and corporate partnerships. Information item; no motion required.
Key Outcomes
- Item 1: Motion to approve staff recommendations for the FY22 mid-year budget report passed 4-0 (Councilmember Moreno present for final vote).
- Item 2: Motion to approve the FY23 budget priorities resolution, as amended with four additional priorities, passed unanimously (4-0). The resolution will be forwarded to the full City Council.
- Item 3: The 2022 committee work plan was received as an information item; no vote taken.
Meeting Transcript
All right, Chair. Uh it seems that we have everyone present and it is nine o'clock if you'd like me to start the meeting. Yes, please. Thank you. Very good. When are you ready? Good morning. Her California government code 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. I'll go over the specifics of how to join the webinar and will give details on how the public can offer their public testimony. I will now call the budget and government efficiency committee meeting of February 2nd, 2022 to order. And I will now call the role signing with Vice Chair Ilo Rivera. Present. Council President Pro Tem Montgomery Step. Sure. Councilmember Vivian Moreno. Present. And I am also here. Each committee member is attending virtually. Also on the virtual meeting is Charles Monica from our independent budget analyst office. Matthew Besby, our CFO, Brittany Bailey from the mayor's office, and Brett Bartlotta 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 view the meeting online by going to the City Council Committee's homepage at San Diego.gov and selecting the City TV Live Webcast button on the right hand side of the page. The committee meetings will be held virtually using the Zoom webinar platform. Members of the public can offer public comment on items by accessing the Zoom webinar online using a computer, tablet or laptop or smartphone, or by calling into the meeting using a smartphone, cell phone, or landline. The link to join the committee meeting webinar by computer, tablet, or smartphone is listed on the agenda on how to join by iPhone one tap. To join the Zoom webinar by telephone, you may dial 1669-254-5252. When prompted, input webinar ID 161 771-9874 pounds. This information is also available on the agenda and will appear on the screen during the public comment period for each item. When I introduce the item you'd like to comment on, you will raise your hand by either tapping the raise your hand button on your computer tablet or smartphone or by pressing star nine on your phone. You'll be taken in the order in which you raise your hand. You may only speak once on a particular item. When our committee consultant Anthony George indicates it is your turn to speak, he will call you by your name as it appears on the Zoom webinar attendee list, or he will read out the last four digits of your phone number if you've called into the meeting. That is how you will know it is your turn to speak. If you have joined the webinar by computer, tablet, or smartphone, you will receive a pop-up notice to select to unmute your device. If you've called into the meeting by phone, press star six on your phone to unmute yourself. We will review these instructions briefly again when the public comment period on an item is open. Please wait until the item you wish to speak to has been called before raising your hand to speak. If you raise your hand during a non-comment period, your hand will be lowered. When you are announced as the next speaker, please unmute yourself and offer your comments. Also, please mute the volume on your TV or computer before you begin to speak. 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, like to call into the meeting to speak, please call 1669-254-5252. When prompted input webinar ID 161-771-9874 pound. To raise your hand to speak, select the raise your hand button or press star nine. Do we have any callers in the queue, Mr.
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