San Diego Budget Review Committee Meeting – May 5, 2015
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San Diego Budget Review Committee Meeting – May 5, 2015
The San Diego Budget Review Committee, chaired by Councilmember Todd Gloria, met on May 5, 2015, to review proposed fiscal year 2016 budgets for multiple city departments, including the Office of Homeland Security, the Office of the Chief Financial Officer, Risk Management, Financial Management, the City Treasurer, Citywide Program Expenditures, the Assistant Chief Operating Officer/Special Events, the Communications Department, the City Attorney, and the City Clerk. Present were council members Leitner, Cole, Sherman, and Alvarez. The committee heard presentations, public testimony, and discussed staffing, fee changes, and reserve requirements.
Public Comments & Testimony
- Martha Welch (appearing on multiple items) expressed dissatisfaction with the handling of her workers' compensation claim by Risk Management, alleging a lack of transparency. She also questioned the accuracy of budget presentations, claiming that plus/minus columns were incorrectly used to mask spending, and voiced concerns about bond debt and the city's fiscal integrity.
- Mr. Stump (speaking on the Zoological Exhibits fund under Financial Management) called for performance goals in the contract with the private organization, greater oversight of the $12 million allocation, and compliance with charter sections regarding the use of public money. He suggested reallocating some tax revenue to water conservation and climate action initiatives.
Discussion Items
Department of Homeland Security
- Executive Director John Valencia presented a proposed FY16 budget of $2.1 million, a marginal increase of $96,000 and 0.8 FTE, noting 53% is grant-reimbursable. Major changes included reclassification of a coordinator to a program manager and addition of hourly personnel.
- Councilmember Kate inquired about spending on training and drills; Valencia stated it was mostly sunk in personnel costs and offered to provide an estimate. Councilmember Sherman questioned duplicate performance indicators and confirmed Continuity of Operations Plans (COOP) would be included. Councilmember Alvarez (via Mr. Kirsty) asked about the lifeguard chief listed at 0.45 FTE—a retired chief working hourly. Councilmember Zap (Zaff?) noted a discrepancy: FTE count was 16.4, not 14.4 as shown, and a corrected May Revise would reflect that. Chair Gloria asked about slight reductions in performance targets; Valencia attributed it to expanding office functions into new mission areas.
Office of the Chief Financial Officer (CFO)
- Mary Lewis presented the finance branch overview, with a budget of $128,000 and no major changes. The branch includes the controller, treasurer, financial management, risk management, and debt management. Proposed adds include positions for internal controls, TOT audits, PCI compliance, budget system upgrade, and risk management.
- Councilmember Kate praised the zero-base review approach and asked about expanding it to other departments. Lewis described a moderate approach. Chair Gloria noted cash management reforms and confirmed resources are adequate.
Risk Management
- Director Greg Baich presented a proposed budget of 83.2 positions and $10.5 million (up $296,000). Adds include a payroll specialist, half a workers' comp claims rep (which he dislikes), five program managers (offset by eliminated positions), $250,000 for temporary staffing, and $37,000 for investment consulting. The IBA detailed public liability fund challenges: claims projected at $72.7 million in FY15, and an additional $3.5 million is needed to meet the 40% reserve target. Workers' comp and long-term disability reserves are on track.
- Public speaker Martha Welch complained about claim handling. Councilmembers questioned vacancies (eight currently) and the need for temporary staff while vacancies exist. Baich cited state mandates and difficulty hiring qualified claims adjusters. Leitner asked for a plan to fill positions. Gloria noted the $3.5 million reserve gap is not yet funded.
Financial Management
- Tracy McCraner presented a proposed budget of $4.4 million, adding a budget coordinator for the PBF upgrade and a senior analyst for CIP, plus $30,000 for training. She also explained the user fee process: a comprehensive study every three years with full cost recovery per Prop 26, involving all general fund departments and city attorney review of 800 fees. Estimated additional revenue of $1.3 million from fee increases and increased activity.
- Councilmember Kate requested detailed hour-based methodology comparisons to 2012. Chair Gloria expressed concern about risk and urged careful justification of fees to avoid legal challenges. Council President Leitner asked about documentation and possible findings of public benefit for subsidized fees.
City Treasurer
- Gail Granowitch and Robin Kulik presented the FY16 budget: 109.73 FTE, $16.25 million in expenditures, $19.3 million in revenue, adding three FTEs for TOT/TMD compliance and revenue auditing. Non-general fund parking meter operations added $1.1 million for smart meters. Four user fee increases proposed: residential parking permits (three at $1 each) and disabled placard fee ($5).
- Public speaker Martha Welch critiqued budget arithmetic. Councilmember Kate confirmed additional staffing is paid through TOT/TMD funds. Council President Leitner asked about enforcement for short-term vacation rentals; staff clarified no existing dedicated positions, and two new hires would handle compliance and auditing. Councilmember Alvarez questioned whether positions would still be needed if online platforms comply; staff said they would reassess. The business tax consolidation project (moving permits from police) will use two existing FTEs, and no new hires are needed for phase one. Chair Gloria praised the smart meter rollout and mobile payment pilot, and asked for details on the $6.1 million parking meter transfer.
Citywide Program Expenditures
- Julio Canisal presented a proposed budget of $87.2 million, essentially flat from FY15 but with large offsetting changes. Highlights include $9 million transfer for animal services, $6.6 million for debt service, $4.1 million for public liability claims (including $1.9 million for De Anza settlement), $165,000 for ADA, $600,000 for primary elections, $350,000 for business cooperation, and reductions of $2 million and $8 million. The $12.8 million excess equity contribution for public liability reserve was removed.
- Public speaker Welch questioned budget presentation. Councilmember Alvarez noted the $3.5 million needed for public liability reserve is not yet budgeted but may come from excess equity. Discussions on city election costs (current $2.4 million could be insufficient given charter review and potential ballot measures). Councilmember Kate asked about stadium consulting funds: the total city commitment is $250,000, with $250,000 requested in FY16; expenditures will be capped at that amount.
Assistant Chief Operating Officer (ACOO) / Special Events
- Stacey Lemenico presented the ACOO budget, adding four ADA positions transferred from public works and a clerical assistant, plus $40,000 for engineering services. Cindy Kadamal presented Special Events: FY16 proposed budget of $1.4 million, up $400,000, for a film program manager and a $125,000 joint RFI with the county to explore a regional film production organization. Also IT and rent adjustments.
- Councilmember Leitner asked about corporate partnerships revenue decrease; Natasha Kaluer explained it will be replaced by in-kind and pass-through funding. She also emphasized the value of the film office and the need for quick hiring. Councilmember Alvarez requested more details to ensure the initiative is sustainable. Councilmember Kate asked about All-Star Game costs; staff noted TOT and major event funds may be available in FY17.
Communications Department
- Director Amelia Brizzell reported a budget similar to FY15, with additions of a deputy director and a word processing operator. The department is still consolidating staff physically and aligning job duties; a meet-and-confer process is ongoing. The IBA noted a request for a senior management analyst for the May Revise.
- Councilmember Zap asked about savings from transfers (net neutral citywide) and about after-hours press availability (system in place for emergencies). Council President Leitner stressed the need for performance measures and district notifications; Brizzell said they will work with Performance and Analytics.
City Attorney
- Jan Goldsmith presented a budget increase of 4.73 FTE net (2.73 general fund). Adds include a DUI prosecutor (federal grant), a consumer protection deputy (self-funded), and four deputies for Prop 47 (offset by cutting an assistant city attorney and a staffing position). He highlighted $15.2 million in savings from the San Diego Bay cleanup insurance recovery. Concerns were raised about additional workload from new code enforcement officers (substandard housing), 424 new city employees, PRA requests (up 370% since 2009), the Chargers stadium, and charter review. He proposed adding one code enforcement prosecutor paid from the code enforcement fund ($88,543) and a civil advisory attorney plus support staff.
- Council President Leitner noted 18 vacancies (only one attorney) and advocated for an additional attorney for charter review. Councilmember Alvarez supported the code enforcement attorney and suggested general fund funding for sustainability. Councilmember Cole expressed excitement about the community court program (phase two with community impact panels) and noted a pending grant application.
City Clerk
- Liz Maland presented a nearly flat budget with no new positions. The $205,000 IT increase is expected to be spread citywide in the May Revise. Two passport fees are being added; two charter fees are decreasing due to in-house typesetting. Passport revenue has grown significantly. The archives access project was highlighted.
- Councilmember Kate asked about the IT increase; Maland confirmed it will be rebudgeted. Chair Gloria noted the elections budget may need augmentation and that records disposition schedule updates are cost-neutral.
Key Outcomes
- The committee took no formal votes but received information and will consider recommendations for the May Revise and FY16 budget adoption.
- Several departments flagged the need for additional funding in the May Revise, including Risk Management ($3.5 million for public liability reserve), City Attorney (code enforcement prosecutor, civil advisory attorney, and support staff), and City Clerk (potential increase for elections).
- The committee expressed support for targeted staffing increases, such as code enforcement prosecutors, film office personnel, and TOT/TMD compliance positions, while urging careful justification of user fees.
- The committee will continue budget hearings the following day at 9:00 a.m.
Meeting Transcript
All right, ladies and gentlemen, I'll call the budget review committee meeting back to order. Note for the record that uh Council members Leitner, Zach Cole, Kate Sherman, and Alvarez are all present. Uh we'll jump back in where we where we left off, which is with the Department of Homeland Security. Come on down. We just I just elevated you, John by Sir, welcome. How much time do you need for your presentation? I think three minutes. You got it. Okay, three minutes. Great, practices. So good afternoon, council members, committee members, and staff. I'm John Valencia, the executive director for the city's Office of Homeland Security or OHS. And I have with me today Miss Catherine Jackson. She is one of our supervising Homeland Security coordinators. And among many of her duties, she supervises our budget. So she might help me out today. And she did all, of course, the hard work behind this. Um next slide, please. So right here, uh OHS is FY16 proposed budget totals just over 2.1 million dollars, as you see there in that column for FY16 proposed budget. Just a real quick note though, of that total 2.1 million dollars, 53%, so over half is grant reimbursable to the city through U.S. Department of Homeland Security grants, really three principal grant funds. So just great credit and it's a great benefit to all to us on behalf of our federal partners. So it's important that I mention that. The uh FY16 proposed budget, as you see there, represents just a marginal increase over last year's adopted budget, a marginal increase of $96,000 and also a .8 FTE full-time equivalent positions that are really two point four hourly positions or provisional. So again, just a marginal increase over last year. Next slide, please. Okay. And then the major changes from FY 15's about adopted budget to this year include the reclassification of 1.0 supervising homeland security coordinator position to a program manager. That will be an additional expenditure over last year. Also the addition of about $80,000 in non-standard or hourly personnel expenses. Again, that is an additional expenditure. And that uh $80,000 corresponds to the point eight FTE ad that you saw on the previous slide. And then also, though, there are some expected or estimated revenues, additional revenues of about 186,000, principally in personnel expenses, but also some person some non-personnel expenses in grant funded opportunities that we have we're taking advantage of this year over last year. So all of those major changes with other uh expenditures and revenues all net to $96,000 increase over last year. And that concludes the formal portion of my brief, of course, uh can answer questions here or note questions down and reply as soon as possible. Very good. We'll turn to our IBA. Thank you. We've reviewed uh OHS's budget and don't have any um comments at this time, in addition to what's been said. Very good. Uh we have no public commenters on this item, so we'll turn to the committee. Uh Mr. Kate. Thank you, uh Chair Gloria. Just have a couple questions. Um how much of the proposed budget do you anticipate spending on training or drill operations? So uh pretty small amount. Um that would be mostly encumbered in our personnel expenses. So as far as how much of that 2.1 million dollars, say towards consultant support or something like that, pretty small, but a good amount of our personnel expense would be hours dedicated to training and exercises. So for example, the uh emergency operations center staff, we train and exercise on a quarterly basis that includes our EOHS staff, and then also the development of those exercises and training.
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