Budget and Government Efficiency Committee Meeting - June 17, 2026
Budget and Government Efficiency Committee Meeting - June 17, 2026
The Budget and Government Efficiency Committee met on June 17, 2026, to address several items including settlements and judgments, the fiscal year 2027 appropriation ordinance, a master lease agreement for vehicles and equipment, a cost-benefit analysis of renting versus purchasing vehicles, and the suspension of contracted services due to transportation department budget limitations. The committee heard extensive public testimony, approved consent items, and forwarded the appropriation ordinance to full council.
Consent Calendar
- Approval of committee minutes from April 8, 2026 and two contract amendments: a First Amendment to an agreement with CINTES Corporation for uniform and fire protection services (increasing expenditure authority by $3 million), and a First Amendment for as-needed fence installation related to homeless strategies. All three items passed unanimously (3-0).
Public Comments & Testimony
- Non-agenda public comments included criticisms of government spending, housing policies, and settlements; claims about Freemasonry and mind-reading; calls for better fiscal education through the IBA; and support for tobacco enforcement and AI tools for enforcement.
- Consent agenda comments focused on living wage concerns, firefighter safety apparel, encumbered funds, and allegations of fraud, waste, and abuse in contracts and at Tent City.
- Item 7 (Settlements and Judgments): Speakers highlighted the human cost of settlements (e.g., Arabella McCormick case), urged accountability for police misconduct, opposed tort reform, and called for departmental financial responsibility and transparency.
- Item 4 (Appropriation Ordinance): Commenters stressed transparency in CDBG fund allocation, police funding, and the need for equity in budget processes.
- Item 5 (Master Lease Agreement): Opposition centered on the cost of vehicles ($226,000 per vehicle), concerns about electric vehicle mandates, and the city's debt level.
- Item 6 (Cost-Benefit Analysis): Union representatives and public speakers supported the analysis, noted staffing shortages, and questioned the shift to electric vehicles.
- Item 8 (Suspended Services): Speakers expressed concern about public safety risks from halted graffiti and weed abatement, and requested clarity on duration.
Discussion Items
Item 7: City of San Diego Settlements and Judgments
Risk Management Director Angelo Colton presented a detailed overview of liability expenses, claims counts, and insurance premiums. Total city expenses for claims, settlements, and insurance rose from $35 million in FY2018 to $83 million in FY2026. Police department settlements and judgments over 10 years totaled $116.31 million, with civil rights violations and police shootings as the largest categories. Transportation and stormwater combined accounted for roughly one-third of costs. The presentation highlighted a $30 million settlement in FY2026 (the largest since 2001), far outpacing CPI increases. Insurance premiums increased from $5.9 million in 2011 to $35.4 million in FY2026, with self-insured retention rising to $7.5 million. Chair Foster requested the item to address the fiscal impact of police liability. Councilmember Ilo Rivera emphasized that settlement amounts reflect the value of lives lost and opposed partnering with business interests on tort reform. SDPD Captain Mike Ramsey outlined training improvements, including doubling in-service training teams and implementing virtual reality training. Chair Foster pressed for metrics on training effectiveness, accountability, and disparities (e.g., Black residents nine times more likely to be charged with resisting arrest). The committee agreed to include liability discussions in future budget principles and to invite a follow-up presentation on transportation/stormwater claims.
Item 4: Fiscal Year 2027 Appropriation Ordinance
Director of Finance Ben Bitalia presented the ordinance, which includes three modifications: authorizing the CFO to reallocate unobligated CDBG balances to nonprofit facility projects, accepting grants for the city clerk, and removing the automated refuse container fund. The IBA noted concerns about the delegation of authority for CDBG funds. After public comment, Chair Foster moved to forward the ordinance to council with a commitment to further dialogue on transparency and language. The motion passed 3-0, with Councilmember Lee absent.
Item 5: Master Lease Agreement for General Fund Vehicles and Equipment
The city proposed financing $48.3 million for 213 vehicles and equipment via a master lease with JP Morgan Chase, with estimated interest rates of 3.91% to 4.1%. Public comment criticized the cost and environmental impact. The committee approved the motion 3-0 (Vice Chair Marino absent).
Item 6: Cost-Benefit Analysis of Renting vs. Purchasing Vehicles
Chief Performance and Logistics Officer Bethany Bizek and staff presented a detailed analysis identifying break-even points for 30 vehicle types. Key findings: purchasing is more cost-effective for long-term, continuous use; renting is better for specialized or seasonal equipment. The IBA noted the analysis aligns with current practices but recommended increasing the rental pool. Councilmember Rivera asked about generators (potential $53,000 annual savings per unit). Chair Foster pressed for operationalization and accountability, requesting an administrative regulation. Staff agreed to provide standardized process documentation.
Item 8: Suspension of Contracted Services Due to Transportation Budget Limitations
Interim Transportation Director Naomi Chavez reported that due to overtime and rental underfunding, the department suspended $1 million in tree trimming, $220,000 for graffiti abatement on private property, and $400,000 for weed abatement through July 1, 2026. The IBA noted that increased spending on other services led to these cuts. Chair Foster expressed frustration that decisions were made without council input, particularly regarding graffiti abatement in Districts 3, 4, 8, and 9, calling it a public safety issue. Councilmember Rivera echoed concern and noted the council's role in revenue decisions. The committee emphasized the need for better resource allocation and communication.
Key Outcomes
- Consent agenda approved (3-0).
- Item 4 (Appropriation Ordinance) forwarded to full council with commitment to refine delegation language (passed 3-0).
- Item 5 (Master Lease Agreement) approved (3-0).
- Items 7, 6, and 8 were informational; no votes were taken.
- The committee requested a follow-up presentation on transportation/stormwater and public utilities settlements.
- The committee will work to include liability discussions in the statement of budgetary principles.
- Staff will provide a standardized process for vehicle procurement and rental decisions, including an administrative regulation if needed.
Meeting Transcript
Alrighty, good morning, and welcome to the budget and government efficiency committee meeting of June 17, 2026. Our committee committee liaison, Natalie Kessler, will provide information and instruction 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 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 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. Council President Pro Tem Lee. Council Rivera, and Chair Foster. Here. Constraints. So I want to make sure that we get one of our items on the information portion of this agenda heard. So we will dispense of the consent agenda and then we will move to item seven, City of San Diego settlements and judgment. And then once we hear item seven, we will go back to the discussion agenda, have that poured dispense of that section of the agenda, and then close with the remaining of the informational items. So with that, 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 council meetings. Natalie, please proceed with 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 received three speaker slips from individuals in the committee room. We will begin with those three before we move to the virtual queue. Allegedly, Audra, please approach the electron, and you'll be followed by Maximilian Schmidt and Joyce and Yada. Yeah, I wasn't really sure what I was gonna say this morning, but I just find it interesting that this is called the budget and government efficiency meeting. Like you're protecting our safety, like you guys are providing housing, all of these things, these trigger words that you know allow the illusion to continue. And it's just very dangerous because things don't have to be this way. The I mean, again, like the government is so good at doing horrible business and staying in business because we continue to fund you guys, and you continue to take money from us, and people, you know, have the hopes of you actually providing affordable housing, but there is no affordable housing. There are so many homeless people on the street that see all of these buildings come up and you know think that maybe that's something that they can get into. And then even when you do a provide something that you get into a contract with a housing unit, you know, we have people that are being abused by the people that you contract with. And so because you take your hands out of it, you know, these people are suffering by the choices that you make. And it's just sad because the people should quit funding this kind of nonsense until you guys like you should be having less and less money. There are people on the street that are like, you know what, I got a hundred bucks. How long can I make this last? And I'd like to see you guys work in that way. That would be efficient. That would be making sure our money is spent wisely when you have less to deal with. But it's like you guys have so much money to at your disposal that I mean, that's why you just keep coming to us for more. Oh, well, we, you know, got into some kind of fraud waste and abuse, and you know, there's all these settlements, but we'll have you pay for it. And it's like if you guys were personally responsible, you wouldn't engage in that. But because you're not and you have access to all these funds, the racket continues. Thank you, Maximilian Schmidt. Um, hi, I'm a whistleblower on Freemasonry, and I'm proud to open Pandora's box and expose some of the biggest secrets known to mankind. Um Hermetic chants done in the Masonic Lodge actually allow people to be telepathic as well as human sacrifices where they can actually look through people's eyes and read people's minds. And there's evidence of this. Um, the evidence is the triangles on top of buildings in all American cities and across the world. Um, it's a pagan symbol that's being worshipped. Also, pyramids on the one dollar bill, there's a pyramid with an eye on it that also um represents this. And people and telepaths have existed before technology existed. Um during the time of Christ, Jesus during the um Last Supper said, uh drink my blood, eat my flesh, because he knew that people were doing human sacrifices to become telepathic. And I also want to spill the beans on something that's bigger than anything Julian Assange ever spilled to the public, or anything bigger than Edward Snowden ever spilled to the public. Is that there's an underground genocide going on where um Freemasons and pagans who make up most of the West Coast are actually killing off Catholics and Patriots. What they're doing is they're they're um looking through their eyes and reading their mind and putting a constant um voice in their head and sensitizing them to noises like an animal.
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