Budget & Gov Efficiency Committee Meeting Summary - Dec 10, 2025
Budget & Government Efficiency Committee – December 10, 2025
The Budget and Government Efficiency Committee convened to review the Fiscal Year 2026 first-quarter budget monitoring report and the five-year financial outlook for the General Fund and Public Utilities, revealing significant structural deficits. The committee also discussed public safety data collection reforms and approved four administrative items regarding personnel exemptions and vendor contracts.
Consent Calendar
- Approved minutes from the November 5, 2025, committee meeting unanimously (4-0). Councilmember Blair Beekman requested clarification regarding park issues and tech accountability in future minutes.
Public Comments & Testimony
- Blair Beekman: Expressed full support for transitioning to a more truthful public dialogue regarding local data collection rights and urged the committee to limit surveillance technology while maintaining public safety.
- Andrea Ebbing: Expressed strong opposition to the current city leadership and contractor selection, specifically accusing District Attorney Summer Stefan of sharing sensitive information with her husband (a federal judge) and advocating for measures to increase safety and revenue, such as drug testing for the homeless. She supported nullifying existing contracts if malfeasance evidence is found.
- Becky Rapp: Expressed opposition to permitting out-of-town marijuana delivery services, stating that expansion without increased accountability and a full transparent audit of existing department operations and revenue collection would compound problems.
- Henry (Virtual Speaker): Expressed support for the notion of increased revenue from legal fees due to shoplifting and suggested deportation incentives as a revenue stream.
- Andrea Ebbing: Expressed strong dissatisfaction with the financial outlook report, labeling the budget situation as a result of "mismanagement and corruption," and advocated for driving revenue by addressing public safety concerns to restore confidence in the city.
- Henry (Virtual Speaker): Expressed criticism of city leadership for prioritizing affluent neighborhoods over those south of Highway 94, characterizing the Mayor as having "King" status and noting that recent parking meter purchases were made despite public opposition.
- Andrea Ebbing: Proposed charging extra fees for "core days" (cast-in-place concrete) to discourage excessive water usage in development and suggested applying erroneous billing recoveries to the city's deficit.
Discussion Items
- Fiscal Year 2026 First Quarter Budget Monitoring: Department of Finance staff presented a report identifying a net projected shortfall of $22.9 million due to revenue decreases (particularly in transient occupancy tax and Balboa Park parking fees) and expenditure increases (public safety overtime). The City Administration confirmed ongoing cost mitigation efforts, including suspending discretionary spending and implementing a zero-based review of external contracts.
- Vice Chair Moreno: Expressed strong concern and frustration that the Mayor's office has not implemented several Council-adopted budget modifications intended to reduce positions, noting that incumbents remain in unfunded roles. She requested a written statement from the City Attorney regarding the Council's recourse under the Charter when budget directives are not followed.
- Charles Modica (IBA): Confirmed that while the administration's actions regarding unfunded positions may align with historical practices of retaining incumbents until retirement, such actions may not fully meet the Council's enacted intent. He noted that the Mayor is not "the King" and must be accountable to the adopted budget.
- Council Member Ila Rivera: Emphasized that the $50 million annual pension liability payment (ending in 2028) represents funds currently unavailable for current services, stating that elected officials previously promised benefits "through magic" thirty years ago.
- Five-Year Financial Outlook (General Fund): Staff projected a structural deficit of approximately $88.7 million for FY2027, rising to $106.7 million in FY2028, driven by personnel cost increases and reduced grant reliance for homelessness programs. The outlook indicated that existing one-time resources are depleted, necessitating service reductions or new revenue sources.
- Council Member Ila Rivera: Expressed concern that the city is not sufficiently building "upstream" pathways to reduce homelessness needs to lower long-term costs, noting that the current reliance on shelter maintenance is unsustainable without significant resource changes.
- Charles Modica (IBA): Stated that absent new revenue streams, the city must make "painful cuts" and prioritize essential services, as the structural deficit will persist without major infusions of funds.
- Five-Year Financial Outlook (Public Utilities): The Public Utilities Department projected stable rates based on recent rate case approvals but anticipates increased costs from the San Diego County Water Authority and capital project delays. Staff noted a three-year extension of the Capital Improvement Plan (CIP) to mitigate rate hikes.
- Personnel Exemptions: Staff requested exemptions for a Program Manager in Environmental Services to oversee homeless encampment abatement and illegal dumping, and a Program Coordinator to improve operational efficiency and data management.
- Vendor Contracts:
- Fleet Parts: Authorized a cooperative procurement contract with NAPA (Genuine Parts Company) for $56.9 million to manage parts and logistics for the city's fleet, citing efficiency and reduced downtime.
- Risk Management: Authorized a five-year contract with ClearAI for a Risk Management Information System (RMIS) to replace the 20-year-old IVOS system, projected to save 7% over ten years.
Key Outcomes
- Vote: Item 2 (Program Manager exemption, Environmental Services) passed unanimously (4-0).
- Vote: Item 3 (Program Coordinator exemption, Collection Services) passed unanimously (4-0).
- Vote: Item 4 (NAPA Fleet Contract) passed unanimously (4-0).
- Vote: Item 5 (ClearAI Risk Management System) passed unanimously (4-0).
- Directives: The Committee requested a written statement from the City Attorney regarding the legal recourse for non-implementation of Council budget modifications. Staff was directed to analyze organizational charts to identify potential management positions for reduction as unclassified vacancies occur.
- Next Steps: The Committee will adjourn until its next meeting on January 14, 2026, at 9:00 a.m.
Meeting Transcript
Good morning, and welcome to the budget and government efficiency committee meeting of December 10th, 2025. Our committee liaison, Sarah Jordan, will provide information and instruction for the public to participate in today's meeting. Thank you, Chair Foster. While members of the public are able to attend the meeting in person, this meeting is being televised and live streamed on the city'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 queue by raising their hand before 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. Council President Pro Tem Lee. Here. Council Member Ila Rivera. Chair Foster. Present. And also attending the meeting this morning is Charles Modica from the Office of the Independent Budget Analyst, Deputy City Attorney Marguerite Medow from City's Attorney's Office. If you are in person, please complete a speaker slip located at the entrance of chambers and place it on the box indicated at the speaker's lecture near the public comment microphones. Please do so in a timely manner to ensure proper meeting management. In-person testimony will conclude before virtual testimony begins, and 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, you may dial 1669-2545252. Inputting webinar ID 161710317 pound. This information is also available on the agenda and it 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. After the consent agenda, we will hear items 6, 7, and 8, which are items on the information agenda. Then we will hear items 2, 3, 4, and 5, which are the items on the discussion agenda. So the order of items being heard today is 1678, then 2345. Please unmute and begin. Good morning. As you may know, the recent federal spending bill signed by President Trump includes a ban on most consum consumable hemp products starting next November. A new report from the nonpartisan Congressional Research Service said that no one yet knows how this will be enforced. It is unclear whether the department will suddenly redirect resources towards these hemp derived products or continue its current practice of limited enforcement. What that means for San Diego is that much of the immediate burden may fall on local governments. Until Congress clarifies enforcement priorities or establishes an alternative regulatory framework, cities will be left to respond to market confusion, handle potential enforcement disputes, and manage litigation risks, especially as federal and state cannabis laws become more misaligned. At the same time, these hemp derived THC products have been widely sold through convenience stores and gas stations, often without age controls or testing requirements. This has already created significant regulatory pressure in other states. And because these products have operated largely outside the regulated cannabis system, they have undercut taxable cannabis sales, reducing expected revenue, while shifting enforcement and compliance responsibilities onto cities without accompanying funding. San Diego must prepare now for increased administrative, legal, and budgetary strain, monitoring market activity, mapping potential enforcement costs, and planning for regulatory realignment will protect our taxpayers from unexpected financial exposure as federal law shifts. For the sake of budget efficiency and responsible planning, I urge this committee to begin assessing these impacts now before the federal deadline, forces reactive spending and emergency adjustments. Thank you. Thank you for your testimony. Our next speaker is Blair Beekman. Please unmute and begin. Hi, uh Blair Beekman. I'm on a bark train, so uh might hear some noise. Sorry about that. Um really uh heavy meeting last night. Um it was uh a throat clearing, I think. I think we um people got out some of their real deep feelings, how they're feeling about flock. Council persons got out some of their feelings about data collection and how we can talk about it better. Um we it sounds like we're trying to move into a new way to talk about our data collection and actually what are our rights as local as a local community of San Diego. Uh we got uh official talk from police department things.
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