Budget and Government Efficiency Committee Meeting - December 11, 2024
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Budget and Government Efficiency Committee Meeting - December 11, 2024\n\nThe Budget and Government Efficiency Committee met on December 11, 2024, to consider several items including a consent agenda, a request to exempt a program manager position, the fiscal year 2026-2030 five-year financial outlook for the general fund and public utilities, and a proposal to set a public hearing for a water rate pass-through from the San Diego County Water Authority. The meeting featured extensive public comment and discussion on budget challenges, with the committee voting to return one item to staff and forwarding another without recommendation to full council.\n\n### Consent Calendar\n- Item 1: Approval of committee minutes of November 13, 2024.\n- Item 2: Authorization to retain outside counsel for appellate law and workers' compensation law for an amount not to exceed $500,000 over a term of five years.\n- Both items were approved unanimously (4-0) after public comment.\n\n### Public Comments & Testimony\n- Non-Agenda Public Comment: Multiple speakers addressed concerns about marijuana advertising and youth, tech accountability, broadband access, and public health costs related to cannabis and tobacco use. Speakers included Terry Ann Skelly, Blair Beekman, Madison, Becky Rapp, Joy Sunyata, and Judy Strang.\n- Item 3 - Program Manager Exemption: Mike Zuquet of the San Diego Municipal Employees Association (MEA) presented detailed data showing the city has added 323 program manager/coordinator positions since 2015 (a 461% increase), costing approximately $80 million. He urged the committee to freeze and cut vacant such positions. Eleven other individuals ceded time to him. Virtual speaker Joy Sunyata expressed support for the item but urged focus on structural issues.\n- Item 5 - Five-Year Financial Outlook: Public speakers included Patrick Stewart (Library Foundation), Mike Zuquet (MEA) again, Kim Phillips P (Arts and Culture SD), Mary Soriano (La Jolla Town Council), and others. Many urged equitable cuts and protection for libraries, parks, and arts. Virtual speakers Nicole Lilly (Our Time to Act) and Christine Martinez (Arts and Culture SD) called for creative revenue solutions and protection of underserved communities.\n- Item 6 - Public Utilities Outlook: Virtual speakers Joyce Sunyata and Blair Beekman commented on structural issues and the need for open discussions on subsidies. Michael Dwyer expressed confusion about revenue vs. expenditure charts.\n- Item 4 - CWA Pass-Through: Virtual speakers Joyce Sunyata supported the IBA's recommendation against multi-year authority, Michael Dwyer questioned cost projections, and Blair Beekman urged open dialogue on subsidies.\n\n### Discussion Items\n- Item 3: Exemption of Program Manager Position in ESD from Classified Service: The Mayor's Office requested the item be continued or returned to staff, citing the need to consider it within the FY26 budget context. After public comment, a motion to return to staff was made by Chair Lee and seconded by Councilmember Foster. Council President Lacaba supported. Vice Chair Moreno voted no, noting she had voted against 41 prior exemptions. The motion passed 3-1.\n- Item 5: Fiscal Year 2026-2030 Five-Year Financial Outlook: Presented by CFO Matt Vespie and Finance Director Rolando Travel. The baseline deficit for FY26 is projected at $258 million, rising to $329 million when including new facilities and planned commitments. Key drivers include increased personnel costs, pension payments, homelessness programs, and infrastructure needs. IBA Director Charles Monica noted this is one of the most sobering outlooks and urged the council to consider revenue options like a trash fee and parking fee increases while preparing for significant cuts. Councilmembers discussed the need for strategic cuts, protecting underserved communities, and exploring revenue. The item was informational only; no vote taken.\n- Item 6: Public Utilities Fiscal Year 2026-2030 Financial Outlook: Presenters outlined significant rate increases needed for water (11-14.5% annually) and wastewater (7-8% annually) due to rising costs from the County Water Authority, energy, chemicals, and infrastructure. IBA noted these are the highest projected increases in recent years. Council President Lacaba asked about revenue exceeding expenditures in some years; staff explained the smoothing mechanism and fund balance needs. Chair Lee expressed concern about affordability and asked about ratepayer assistance programs; staff committed to exploring options. Informational item.\n- Item 4: Authorization to Set Public Hearing for 2025 CWA Pass-Through and Pass-Through Authority: Staff requested approval to set a public hearing for a 5.5% pass-through (effective May 1, 2025) to cover higher-than-expected CWA rates, and also requested authority for future pass-throughs through 2029. IBA recommended approving the initial hearing but recommended against the multi-year authority at this time, suggesting it be considered during the upcoming rate case. Chair Lee initially moved to approve the hearing, deny multi-year authority, and direct research on ratepayer assistance. After clarification from the City Attorney that the item could not be split, Council President Lacava made a substitute motion to forward the entire item to full council without recommendation. That motion passed 2-1 (Chair Lee and Council President Lacava in favor; Councilmember Foster opposed; Vice Chair Moreno absent).\n\n### Key Outcomes\n- Consent Agenda: Approved unanimously (4-0).\n- Item 3: Motion to return to staff passed 3-1 (Vice Chair Moreno dissenting).\n- Item 5: Informational; no action taken.\n- Item 6: Informational; no action taken.\n- Item 4: Motion to forward to full council without recommendation passed 2-1 (Councilmember Foster dissenting; Vice Chair Moreno absent). The direction for PUD to work with IBA on ratepayer assistance was noted but not formally part of the motion.
Meeting Transcript
Good morning. Good morning, and uh welcome to the budget and government efficiency committee meeting of December eleventh, twenty twenty-four. Our committee lays on Natalie Kessler will go over instructions for today's meeting. This meeting is being televised and live streamed on the city's website, and the 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 queue by raising their hands before the 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. Thank you. I'll now call the budget and government efficiency committee meeting of Wednesday, December 11th, 2024 to order. Natalie, please call the role. Vice Chair Moreno. Present. Council President Lacaba. Present. Councilmember Foster. Here. And Chair Council Councilmember Lee. Here. Also attending the meeting today, Charles Monica and Lisa Byrne from the independent budget analyst office. David Powell from the city attorney's office. Matt Besby, Chief Financial Officer, and Matt Yagin, Director of Policy for Mayor Todd Gloria. If you're in person, please complete a speaker slip located at the entrance of chambers and place it on top of the box indicated at the speaker's lecture at the front of the room. Please do so in a timely manner to ensure proper meeting management. In-person testimony will conclude before virtual testimony begins. Members of the public can join the webinar by computer, tablet, or smartphone by accessing the link, which is listed online in the preamble language of the agenda on the city's webpage. If you need to participate by telephone, please dial 1669 2545252. The webinar ID is 160074 2406 pound. This information is also available on the agenda and will appear on the screen during the public comment period for each agenda item. Chair. Thank you for reviewing those instructions for the benefit of the public. A quorum is now present. We will take up non-agenda public comment. The council members respect and appreciate the public's input and are fully committed to protecting every participant's free speech rights at council and committee meetings. Natalie, please proceed with any non-agenda public comment. Per Rule 2.7 non-agenda public comment is an opportunity for members of the public to comment on items that are not on the agenda but within the subject matter jurisdiction of the committee. Each speaker will have two minutes. If you've joined the Zoom webinar online or by phone and have non-agenda public comment, please raise your hand at this time if you wish to speak. And Chair, we have not received any speaker slips in the committee room for non-agenda public comment, but there are currently four hands raised in the virtual queue. I've started the five-minute timer. Terry Ann Skelly, please begin. You'll have two minutes. Good morning, budget and government efficiency committee chair Lee. My name is Terry Ann Skelly. I'm a parent, a public health educator, and a planning group attendee. It is very important how an and on what our city spends its money. I thank you for serving on this important committee. As a mother of three adult sons, I was extremely pleased that the city has advocated for internship programs for our teens and our young adults. And I wonder if these departments hire or acquire young adult interns.
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