Budget and Government Efficiency Committee Meeting – March 1, 2023
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Budget and Government Efficiency Committee Meeting – March 1, 2023
The Budget and Government Efficiency Committee met on March 1, 2023, to approve prior committee actions, hear non-agenda public comment, and discuss two agenda items: a user fee adjustment for high-rise inspections and the integration of budget equity into the FY2024 budget process. The meeting was chaired by Council President Pro Tem Montgomery Step, with Vice Chair Moreno attending virtually due to childcare needs. The committee approved the consent calendar and the fee adjustment item unanimously, and received the budget equity presentation as an information item.
Consent Calendar
- Approval of Committee Actions for February 8, 2023: The committee voted unanimously to approve the actions from the prior meeting. No public testimony was offered.
Public Comments & Testimony
Non-Agenda Public Comment:
- Becky Rapp (parent and public health educator): Cited SANDAG data showing drug use at a 20-year high among adult arrestees (79% of males, 82% of females testing positive for marijuana, meth, opiates, or cocaine). She argued that marijuana use contributes to foster care overload and urged the city to align programs toward a drug-free community to achieve a balanced budget.
- Peggy Walker: Noted a projected $5.9 million shortfall in marijuana tax revenue and a 75% tax rate reduction (from 8% to 2%). She suggested the city should rethink the tax rate, referencing Forbes on vice taxes, and argued that marijuana consumption carries negative externalities (addiction, ER visits, homelessness, etc.).
- Joyce (District 3 resident): Expressed support for participatory budgeting, thanked committee members, and discussed the complexity of the structural budget deficit.
- Judy Strang (parent and grandparent): Expressed excitement about budget equity and upstream thinking, and advocated for clean air and smoke-free environments, noting that Americans for Nonsmokers' Rights celebrated the Day of Breathing.
Public Comment on Item 2 (Budget Equity):
- Joyce (phone ending 7968): Praised the budget equity plan as a mindset change and thanked the committee for its work.
- Blair Beekman: Congratulated the effort but asked for clearer metrics and formulas for equity assessment, urging transparency in the process.
Discussion Items
Item 1 – Fiscal Year 2023 User Fee Adjustment for High-Rise Inspections
- Michelle Yamamoto (Deputy Director, Fire Rescue) and Chief Tony Tosca (Fire Marshal) presented a proposal to reduce the fee from $30 to $18 per 1,000 square feet. The reduction was due to a calculation error in the prior fee study and efficiency gains from stakeholder education, staff training, new cloud-based inspection software, and geographic-based inspections. The lower fee still maintains full cost recovery. Refunds will be issued to users who paid the higher fee since July 1, 2022. The projected revenue decrease is $464,000 annually. The committee unanimously approved the adjustment.
Item 2 – Budget Equity in the FY 2024 Budget Development Process
- Matt Yagiagan (Deputy Director of Policy and Council Affairs, Mayor’s Office), Chief Financial Officer Matt Vespe, and Chief Race and Equity Officer Kim Desmond presented the city’s first integration of an equity lens into the budget development process. Key components include:
- A budget equity framework with three deliverables: a summary in Volume 2 of the budget book, a questionnaire for equity-centered coaching, and a highlight of trade-offs.
- Software changes requiring every budget adjustment to include whether it addresses a disparity and answer equity lens questions.
- Training and coaching for all department directors on equity principles.
- The IBA (Charles Monica) expressed support, noting that the process will be a focus in their review of the proposed budget. Committee members discussed the need for accountability, performance metrics, and the connection to climate action and operational changes. The item was informational; no vote was taken.
Key Outcomes
- Item 1 (User Fee Adjustment): Approved unanimously. The city clerk will amend the rate book, and refunds will be issued.
- Item 2 (Budget Equity): Received as information. The proposed budget will be released on April 14, 2023, with equity impact statements included in Volume 2. The committee will continue discussions in upcoming budget review hearings.
- Upcoming Dates: Mid-year budget monitoring report (March 6), proposed budget release (April 14), third-quarter monitoring and May revise, and budget adoption in June.
Meeting Transcript
Good morning, everyone, and welcome to the budget and government efficiency committee meeting of March 1, 2023. Our committee manager, uh Ty Birch, will go over instruction instructions for today's meeting. Thank you, Council President Pro Tem Montgomery Step. While members of the public are able to attend uh the meeting in person today, this meeting is being televised and live stream on the CE's website, and council administration will continue to make arrangements for the public to comment using the Zoom webinar platform. Members of the public who wish to provide virtual testimony must enter the virtual speaking queue by raising their hand before the virtual queue closes. The queue will close when the last virtual speaker finishes speaking or five minutes after in-person testimony ends, whichever occurs first. This will allow for better meeting management between the two platforms and ensure the committee is able to manage and conduct city business. We appreciate the public's cooperation. Chair Montgomery Step. Thank you so much. I will now call the budget and government efficiency committee meeting of Wednesday, March 1, 2023 to order. Tyler, please call the roll. Thank you. Uh Vice Chair Moreno. Present. Thank you. Uh Councilmember Lakava. Present. Uh Councilmember Lee, present. And Chair, Council President Pro Tem Montgomery Step. And I am here briefly while we're doing roll call. Just ask uh Vice Chair Moreno to make any announcements that you need to make at this time. Thank you so much, Chair. Um I want to notify the entire city council and the public, or I notify to the entire city council and the public at the February 27, 2023 meeting at the City Council meeting that I would attend today's committee meeting virtually due to just cause related to my child care needs. And pursuant to the Brown Act, I am disclosing that there are no individuals 18 years of age or older present in the room with me. I will update this disclosure if it changes during the course of this committee meeting. Additionally, pursuant to the Brown Act, I will also take this opportunity to notify the committee and the public that I will also be attending the April 12th, 2023 budget and government efficiency committee virtually due to just cause related to my child care needs. Thank you very much, Chair, and that concludes my comments. Thank you so much. So also attending the meeting today, we have Charles Monica and Lisa Byrne from the Independent Budget Analyst Office. Tyler, please continue with public comment instructions. So please participate via the audio on your phone and mute your TV or computer when it is your turn to speak. If you wish to speak on a particular item, wait for that item to be called and then use the raise your hand button by selecting the raise your hand icon or input star nine on your phone. If you raise your hand during a non-comment period, your hand will be lowered. Thank you so much, Tyler, for reviewing those instructions to the benefit of the public. Tyler, please proceed. Thank you very much, Chair. The public comment period for the committee actions is now open if you've already joined the Zoom webinar online or by phone. Please raise your hand if you wish to speak on the committee actions of February 8th, 2023. Um, Chair, we do not have anyone in chambers who have uh submitted speaker slips for the committee actions, nor do we have anybody raising their hand in the virtual queue. So that will conclude public testimony on the committee actions. Okay, we will now vote on the approval of the committee actions for February 8, 2023. Do I have a motion to approve the committee actions? So moved. Okay. All right, great. So we have a motion by the vice chair and a second by member Lacava. And we will now uh take the role. If you would just use the voting screen and Vice Chair Mareno, if you could register your vote. Moreno, yes.
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