OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Budget and Government Efficiency Committee Meeting - February 4, 2026

Budget & Government Efficiency Committee — Wednesday, February 4, 2026
BodySan Diego, California
SessionBudget & Government Efficiency Committee
DateWednesday, February 4, 2026
StatusFILED
Video Record
0:00 / 1:47:18

Transcript — Verbatim
4:45

All righty.

4:46

Good morning, and welcome to the budget and government efficiency committee meeting of February fourth, twenty twenty-six.

4:52

Our committee liaison, Natalie Kessler will provide information and instruction for the public to participate in today's meeting.

5:01

Thank you, Chair.

5:02

Well, members of the public are able to attend the meetings in person.

5:04

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.

5:12

Members of the public who wish to provide virtual testimony must enter the virtual queue by raising their hand before the virtual queue closes.

5:18

The queue will close when the last virtual speaker finishes speaking or five minutes after in-person testimony ends, whichever occurs first.

5:24

This will allow for better meeting management between the two platforms and ensure the committee is able to manage and conduct city business.

5:29

We appreciate the public's cooperation.

5:33

I will now call the meeting of the budget and government efficiency committee meeting of February 4th, 2026 to order.

5:39

Natalie, please call the role.

5:41

Vice Chair Marino.

5:43

Council President Pro Tem Lee.

5:45

Councilmember Elo Rivera.

5:47

Chair Foster.

5:48

Here.

5:49

Also attending the meeting today is Charles Modica and Lisa Byrne from the Office of the Independent Budget Analysts.

5:54

Deputy Chief City Attorney Brett Bartelata from the City Attorney's Office.

5:57

Rolando Charvel, Chief Financial Officer, Matt Yagan, Director of Policy from the Office of Mayor Todd Gloria, and Daniel Horton, Chief of Staff.

6:04

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 and near the public comment microphones.

6:11

Please do so in a timely manner to ensure proper meeting management.

6:15

In-person testimony will conclude before virtual testimony begins.

6:18

Members of the public can join the webinar by computer, tablet, or smartphone by accessing the link listed online in the preamble language of the agenda on the city's webpage.

6:26

If you need to participate by phone, please dial 1669-2545252.

6:30

The webinar ID is 16040838 pound.

6:34

This information is also available on the agenda.

6:37

Please note that if you're watching via City TV Channel 24 or online, there may be a delay.

6:42

So please participate via the audio on your phone and mute your TV or computer when it is your turn to speak.

6:46

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.

6:52

Or if you're a callant participant, press star nine on your phone.

6:55

If you raise your hand during a non-comment period, your hand will be lowered.

6:58

Chair.

7:02

Thank you for that.

7:03

A quorum is now present.

7:05

We will now take up non-agenda public comment.

7:07

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.

7:15

Natalie, please proceed with not agenda public comments.

7:19

Parole 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.

7:28

Each speaker will have two minutes.

7:29

And we have not received any speakers' lists from individuals here in chambers.

7:33

We'll move to the virtual queue and I've started the five-minute timer.

7:37

We have four hands raised in the virtual queue.

8:01

Okay, we will move to Francine Maxwell.

8:04

Please unmute and begin.

8:06

Can you hear me?

8:07

Yes.

8:08

Thank you so much.

8:09

France Maxwell, um, Southeastern resident.

8:12

I want to start by thanking the IBA.

8:15

Your doors are always open all year, not just during the budget uh season.

8:21

I want to specially um give appreciation to the weekends and the evenings that your staff will come out when the community sits and um gathers dates and times and locations to get educated about the budget.

8:35

I'm hoping that given our season right now, that the council or the CFO or the mayor's office will host community meetings to teach people about the budget, especially given the deficit, so that they truly understand it is very taxing to pay for parking to come down to the chamber, the people's chamber, and and give one minute to tell you about their budget ideas when you could actually help us and um get locations in every district.

9:06

They can combine and pick one location and two districts can go to one location to really speak and talk to the people.

9:13

Again, connection, engagement is the only thing that's going to move our city forward as it pertains to any taxes that the diocese plans to introduce.

9:24

Again, to build trust, you have to be in the same space and begin to hear something and feel safe to have an uncomfortable conversation.

9:34

We trust our CFO.

9:36

We trust the IBA.

9:37

Let's get in some spaces together and discuss, discuss the real issues here in San Diego and come to a happy medium.

9:45

You are the decision makers elected by us.

Discussion Breakdown — Share of Meeting
Budget Equity Analysis████████████████████████████28%
Fiscal Sustainability██████████████14%
Procedural███████████11%
Public Safety█████████9%
Public Comment███████7%
Public Engagement██████6%
Water And Wastewater Management██████6%
Cannabis Regulation████4%
Homelessness████4%
Summary of Proceedings

Budget and Government Efficiency Committee Meeting - February 4, 2026

The Budget and Government Efficiency Committee met on February 4, 2026, at 9:00 AM. The meeting covered non-agenda public comments, approval of consent calendar, authorization of water revenue bonds, the FY2026 mid-year budget monitoring report, and updated FY2027 city council budget priorities. The committee voted 3-0 on all items (Councilmember Moreno absent).

Consent Calendar

  • Item 1: Approval of the committee minutes from January 14, 2026. Passed 3-0 without discussion.

Public Comments & Testimony

  • Non-Agenda Public Comments:
    • Francine Maxwell (Southeastern resident) thanked the IBA for budget education and urged the city to host community budget meetings in each district to build trust.
    • Madison warned against relying on cannabis business tax revenue due to instability, citing a $1.5 million shortfall and public health concerns.
    • An anonymous speaker called for an overtime watchdog program and opposed funding for undocumented immigrants.
    • Judy String highlighted the high costs of untreated addiction (18-22% of population affected) and urged policymakers to avoid enabling substance use.
    • Blair Beekman (audio issues) spoke on tech and public safety.
    • Becky Rapp expressed concern over tourism decline due to visible drug use and homelessness, urging cleanup and removal of marijuana billboards.
  • Item 2 Public Comment: One speaker asked about the alternative of not issuing bonds and the collateral (ratepayers).
  • Item 3 Public Comment: Blair Beekman had audio issues; no effective testimony.
  • Item 4 Public Comment:
    • Christine Martinez (Arts & Culture San Diego) asked to keep arts funding at 4.28% of TOT, emphasizing arts as an economic engine.
    • Ian Grooms encouraged insourcing stormwater emergency projects to reduce costs.
    • Arya Grossman (Circulate San Diego) urged funding for Vision Zero priorities (Fatal 15 intersections, school zone speeds, daylighting laws), citing a recent child fatality.
    • Connor Robbins (Teamsters 986, San Diego Lifeguards) requested funding for lifeguard wellness program participation, noting lifeguards lack presumptive injury protections.
    • John Stump urged focusing on charter-mandated core services before discretionary spending.

Discussion Items

  • Item 2: Authorization for Water Revenue Bonds: The Department of Finance presented a plan to issue up to $150 million in water revenue bonds to refund 2016A/B bonds (estimated $46.4 million savings, 13% NPV) and pay down commercial paper for capital projects (98% for pipelines). The bonds are supported by water rates passing affordability tests. Final sale expected June 2026. Committee members thanked staff for savings and capacity restoration. Passed 3-0.
  • Item 3: FY2026 Mid-Year Budget Monitoring Report: The Department of Finance projected a $16.8 million general fund deficit ($13.6M revenue shortfall, $3.2M expenditure overage). Key revenue declines: TOT (-$7.4M), other major revenues (-$6.7M), and departmental revenues (-$6.4M, including Balboa Park parking and cannabis tax). Expenditure increases driven by overtime ($12.9M overage in fire, police, transportation). The police department reported overtime on budget for non-cost-recoverable categories, with $3.4M over in cost-recoverable areas offset by reimbursements. Neighborhood Policing Division results: 400 referrals to safe parking, 245 abatements, 176 tons of waste removed. IBA offered preliminary comments, noting the $16.8M deficit and the need for programmatic cuts; full analysis due February 18. Chair Foster emphasized core services, no across-the-board cuts, and equity. Councilmember Pro Tem Lee questioned Balboa Park parking revenue discrepancy (council added $1.5M for three months but loss projected at $4.4M). Councilmember Ilo Rivera stressed equity in reductions. Motion to adopt staff recommendation passed 3-0.
  • Item 4: FY2027 Updated City Council Budget Priorities: The IBA presented updated priorities based on council member memos. Majority-supported (≥5 members): restoring Office of City Auditor funding ($55,000), brush management. New priorities with 4 members: recruitment/retention, avoidance of across-the-board cuts, unapproved streets/alleys. The lifeguard wellness program was corrected to have 4 supporters. TOT recommendation: partial funding for arts at 4.28% (6 members), full funding at 9.52% (2 members). Committee discussed including the 4-member priorities. Motion by Pro Tem Lee to include them, seconded by Ilo Rivera, passed 3-0.

Key Outcomes

  • Item 1: Consent calendar approved (3-0).
  • Item 2: Authorization for water revenue bonds approved (3-0). Full council first reading late February, second reading March, bond sale June.
  • Item 3: Mid-year budget monitoring report adopted (3-0). Staff directed to include updates on FY26 budget implementation impacts. Full council hearing with IBA analysis on February 18.
  • Item 4: Updated budget priorities resolution forwarded to full council (3-0), including newly supported priorities with 4 council members (recruitment/retention, no across-the-board cuts, unapproved streets/alleys, lifeguard wellness). Council to consider February 9, then submit to mayor.
  • Next meeting: March 4, 2026 at 9:00 AM.

Meeting Transcript

All righty. Good morning, and welcome to the budget and government efficiency committee meeting of February fourth, twenty twenty-six. Our committee liaison, Natalie Kessler will provide information and instruction for the public to participate in today's meeting. Thank you, Chair. Well, 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 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 4th, 2026 to order. Natalie, please call the role. Vice Chair Marino. Council President Pro Tem Lee. Councilmember Elo Rivera. Chair Foster. Here. Also attending the meeting today is Charles Modica and Lisa Byrne from the Office of the Independent Budget Analysts. Deputy Chief City Attorney Brett Bartelata from the City Attorney's Office. Rolando Charvel, Chief Financial Officer, Matt Yagan, Director of Policy from the Office of Mayor Todd Gloria, and Daniel Horton, Chief of Staff. 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 and 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. Members of the public can join the webinar by computer, tablet, or smartphone by accessing the link listed online in the preamble language of the agenda on the city's webpage. If you need to participate by phone, please dial 1669-2545252. The webinar ID is 16040838 pound. This information is also available on the agenda. Please note that if you're watching via City TV Channel 24 or online, there may be a delay. 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 raise your hand to speak by tapping the raise your hand icon. Or if you're a callant participant, press star nine on your phone. If you raise your hand during a non-comment period, your hand will be lowered. Chair. Thank you for that. A quorum is now present. We will now 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 not agenda public comments. Parole 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. And we have not received any speakers' lists from individuals here in chambers. We'll move to the virtual queue and I've started the five-minute timer. We have four hands raised in the virtual queue. Okay, we will move to Francine Maxwell. Please unmute and begin. Can you hear me? Yes. Thank you so much. France Maxwell, um, Southeastern resident. I want to start by thanking the IBA.

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