Budget and Government Efficiency Committee Meeting - February 5, 2025
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Budget and Government Efficiency Committee Meeting - February 5, 2025
The Budget and Government Efficiency Committee met on February 5, 2025, to review the FY2025 mid-year budget monitoring report, consider FY2026 user fee adjustments, and discuss the committee's work plan for 2025. Key topics included a projected general fund deficit of $24.4 million, revenue mitigation measures, and significant concerns about expenditure cuts and hiring practices. The committee forwarded several items to full council with requests for additional analysis.
Consent Calendar
- Approved the committee minutes from January 15, 2025, unanimously.
Public Comments & Testimony
- Non-Agenda Public Comment: Multiple speakers addressed the city's budget, including Caesar Javier (alleged corruption and environmental hazards from a ceramics business), Terry Ann Skelly (supported funding for tobacco retailer enforcement), Devin Rapp (urged a cost-benefit analysis of cannabis industry citing enforcement and public health costs), Peggy Walker (referenced a CDPH report recommending THC-based taxation), and Kathleen Lippitt (cautioned that revenue from addictive products does not cover associated costs).
- Item 4 (Mid-Year Budget Report): Michael Zucket, representing the San Diego Municipal Employees Association (MEA), expressed strong frustration with the lack of expenditure cuts, stating the city is "wasting time" and that hiring freezes have not been effective. He highlighted high vacancies in libraries (91 positions) and parks (24% vacancy in MEA positions) while unclassified positions increased.
- Item 2 (User Fee Analysis): Speakers opposed certain fee increases: Kurt Brooker (Artwalks San Diego) said a 50% increase in police services could force the event out of the city; Diana Pitts (San Diego Padres) noted nearly $100,000 in additional monthly costs; Chris Kate (BIA) requested deferral on engineering capital project fees to allow stakeholder input.
- Item 3 (Parks and Rec Fees): Steve Upp opposed changing sand court fees, DeCody Contreras (Volo) requested delaying category two increases to July 1, and Mary Soriano urged consideration of community needs.
- Item 5 (Budget Priorities): Clifford Weiler thanked staff and council; others emphasized equity and arts funding.
Discussion Items
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Item 4: FY2025 Mid-Year Budget Monitoring Report
- Matt Vesby (CFO) reported general fund revenues projected $19.6 million (0.9%) under budget and expenditures $4.9 million (0.2%) over, resulting in a $24.4 million deficit. Mitigation actions included $12.7 million in revenue increases (parking meter rates, citation fees, user fees, cannabis tax), plus $20.6 million in excess equity from FY2024. Sales tax was $29.4 million below budget due to persistent inflation.
- Police Chief Scott Wall presented staffing models: SDPD is 1,000 officers short of the ideal 40% uncommitted time model and 200 short of the 0% uncommitted time model. Overtime is projected $9.8 million over budget ($46M budget). Neighborhood policing doubled abatements to 6,000, but budget concerns remain.
- IBA commented that revenue headwinds (especially sales tax) and expenditure overruns are concerning, and urged sooner expenditure cuts rather than waiting until FY2026.
- Committee members (Ilo Rivera, Lee, Moreno) criticized the lack of action on expenditure cuts and the absence of the Chief Operating Officer. Motion to accept the report passed 4-0.
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Item 2: FY2026 Comprehensive User Fee Analysis
- Overview: 682 fees evaluated; 299 proposed increases, 25 decreases, 58 unchanged, 71 eliminated, 229 new. Estimated additional $22.8 million citywide ($19.6 million general fund). Key increases: parking citation fines (not updated since 2003), police special event fees (25% discount for nonprofits), airport landing fees (benchmarked).
- Councilmember Ilo Rivera questioned subsidies, specifically airport landing fees ($1 million) and general plan maintenance fee ($5.8 million), arguing full cost recovery could redirect funds to libraries and parks. He moved to forward to full council with no recommendation and requested additional IBA analysis. Motion passed 3-0.
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Item 3: FY2026 Parks and Recreation User Fees
- IBA noted that proposed fees average 19.5% cost recovery, with boat storage at 77% and boat mooring at 60%. For-profit adult league fees recover only 38% of costs.
- Councilmember Ilo Rivera motioned to forward to full council with no recommendation but directed staff to study implementing resident vs. non-resident fees, citing existing systems (e.g., Torrey Pines golf). Motion passed 3-0.
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Item 5: FY2026 Council Budget Priorities
- Brief discussion; motion to accept staff recommendation passed unanimously.
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Item 6: 2025 Committee Work Plan (Informational)
- Chair Foster presented the plan, emphasizing efficiency, KPIs, and equity. Public comment received. No action required.
Key Outcomes
- Consent agenda approved unanimously.
- Item 4 (Mid-Year Report): Accepted by committee (4-0).
- Item 2 (User Fees): Forwarded to full council with no recommendation; additional analysis from IBA and staff requested (3-0).
- Item 3 (Parks Rec Fees): Forwarded to full council with no recommendation; staff directed to study resident/non-resident fee options (3-0).
- Item 5 (Budget Priorities): Approved as recommended (3-0).
- Item 6 (Work Plan): Received as information; no vote.
- Next regularly scheduled meeting: March 5, 2025, at 9 a.m.
Meeting Transcript
Good morning. And welcome to the budget and government efficiency committee meeting of February 5th, 2025. Our committee liaison, Natalie Kessler will provide information and instructions for the public to participate in today's meeting. Thank you, Chair. While members of the public are able to attend the meetings in person, 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 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. I will now call the meeting of the budget and government efficiency committee meeting of February 5th, 2025 to order. Natalie, please call the role. Vice Chair Councilmember Moreno. Present. Council President Pro Tem Lee. Here. Councilmember Elo Rivera. Present and Chair Foster. Present. Also attending the meeting today is Charles Monica and Lisa Byrne from the Office of the Independent Budget Analysts. 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 also 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 16692545252. The webinar ID is 161-7710317 pound. This information is also available on the agenda and will appear on the screen during the public comment period for each agenda item. Please note that if you're watching via City TV Channel 24 or online, there may be a delay. 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 raise your hand to speak by tapping the raise your hand icon, or if you are a call-in participant, press star nine on your phone. If you raise your hand during a non-comment period, your hand will be lowered. Thank you, Natalie, for reviewing those instructions for the benefit of the public. Since our formal reporting on June 13, 2021. The owner of ceramics, home business since December 17, 1984, renewed his business tax license for the year 2025, been located, constructed, operated for four to one years in residential zone, designated community science through research studies, explains the hazards and ceramics. In fact, the health bulletin of 2020 by the Center of Disease Control and Prevention declared that the repetitive hitting for firing of ceramics mineral, which contain chemicals, including metal sets as Seneca in its overnight whether word or gas. Thank you, Caesar Javier. Yes, ma'am. They call me also Uncle Caesar from uh district four, our neighbor uh district. I'm sorry to say that our fate is winning. When I approach Council O Rivera, I think in person twice. One by telephone. His last mandate to his stop is teach CESA step-by-step policy change fit or undertaking. The response of Mr. Dentino. Sir, I cannot help you because I believe in the investigation of the blue. I do not know what's the blue, but I found it later. Building Lanyus environment. And also I believe in the investigation of the air pollution control district, where Mr. Ribera and the Mayor are my classmates in the governing board air pollution control district. What's going on in the Tijuana River is the failure of that agency belonging to the members, including Mr. Ribera and the mayor.
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