San Diego City Council Budget Review Committee Meeting on FY2016 Proposed Budget - May 5, 2015
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San Diego City Council Budget Review Committee Meeting on FY2016 Proposed Budget - May 5, 2015
On May 5, 2015, the San Diego City Council Budget Review Committee convened its first hearing on the Mayor's proposed FY2016 budget. Council President Sherri Leitner called the meeting to order, with Councilmember Todd Gloria serving as chair. The proposed $3.2 billion budget emphasized infrastructure investment, public safety, technology, and fiscal discipline. The meeting included presentations from the Chief Operating Officer, the Independent Budget Analyst (IBA), and the Police and Fire-Rescue departments, followed by extensive public testimony and council discussion.
Public Comments & Testimony
- John Stump urged the council to set measurable goals for each city department in the areas of drought, water conservation, stormwater compliance, climate action, and social justice.
- Martha Welch raised concerns about the city's budget numbers, alleging hidden funds and questioning the rent calculations for Mission Bay Park, and suggested a potential lawsuit.
- Catherine Rhodes discussed homeless shelter issues, the lack of a budget for the successor housing entity (Civic San Diego), and the need to eliminate conditional use permits for homeless shelters under the shelter crisis declaration. She also noted a 25.8% increase in downtown homelessness.
- Mike Zuquette (San Diego Municipal Employees Association) expressed skepticism about the city's ability to hire 424 new positions, citing existing vacancies and recruitment/retention challenges, particularly in the police communications division where mandatory overtime has persisted for three years.
- Jim Barnador (public speaker) supported community policing and problem-oriented policing, advocated for capping sworn officer counts, and called for more staff in the multicultural community relations office, including Vietnamese interpreters.
- Stephen Zelezi (Food and Beverage Association) opposed the proposed 44% increase in entertainment permit fees for venues with alcohol and fewer than 100 people, stating it would harm small businesses.
- Ken Freeman and Nancy Freeman (antique mall owners) argued that the $500 annual dealer fee in San Diego is far higher than neighboring cities ($0-$35), driving dealers away.
- Anna Barvier (NRA/CRPA) opposed firearms dealer fee increases, stating that the fees are excessive compared to state and federal fees and that the city has not justified the costs.
- Veronica Garlow requested transparency in the fee calculation process, noting that the city did not provide detailed hours for firearms dealer inspections.
- David Casper (firearms dealer) questioned why city fees are five times the county's and why the city duplicates state and federal inspections.
- Chris Duggan (California Restaurant Association) opposed the 42% increase in entertainment permit fees with alcohol, saying it would hinder small business growth.
- Daniel Gray (firearms dealer) argued that the municipal code no longer mandates the inspections that justify the high fees.
- Deborah Torkington (holistic health practitioner) said the proposed fee increase for her permit would force her out of business, as she makes only $2,000 above poverty level.
- Benjamin Nichols (Hillcrest Business Association) opposed the 40% increase in entertainment permit fees, noting that nightlife in Hillcrest is declining.
- Michael Trimble (Gaslamp Quarter Association) echoed concerns about entertainment permit increases and called for transparency.
- Bishop Courtney Bowser (San Diego Organizing Project) advocated for restoring community policing, including foot patrols, storefronts, more community relations officers, and procedural justice training. He noted that the number of community relations officers has dropped from 40-50 to about 8.
- Raquel Pagan Diaz (San Diego Organizing Project) emphasized the importance of community policing to build trust, especially among immigrant communities.
- Ed Harris, Bill Bowers, and Lonnie Stevens (Teamsters 911, representing lifeguards) presented a case for extending presumptive illness coverage to lifeguards, arguing that they are part of the fire department and face similar toxic exposures. They cited examples of lifeguards contracting illnesses from contaminated water and bloodborne pathogens.
Discussion Items
- Opening Remarks and IBA Overview: Council President Leitner and Councilmember Gloria set the stage for the budget process, highlighting the need for transparency and public participation. The IBA (Andrea Tevlin) presented a high-level review, noting that the proposed budget is "robust and aggressive" with conservative revenue projections. Key challenges included the hiring of 424 new positions (a record number), the growing deferred capital shortfall, potential insufficient personnel funding for fire rescue, and a decline in library funding as a percentage of the general fund despite a 6% library ordinance. The IBA also discussed excess equity policy and the need for a cushion above the 14% reserve. The IBA recommended that the council require a consultant to oversee contract oversight in response to a recent audit. Future fiscal challenges were outlined, including $6.5 million in additional POA MOU costs in FY2017, potential SERS rate changes, and the loss of $10 million in sales tax revenue.
- Police Department Budget: Chief Shelley Zimmerman presented the proposed $435.4 million general fund budget, which includes $16 million in new spending and 44.49 new FTEs. Key investments: $11.1 million for the new POA MOU, $5.6 million for the CAD system replacement, and funding for 22 civilian positions (including 10 police investigative service officers). The budget also includes $1.1 million for recruit equipment and 12 new vehicles, and $2.1 million from the COPS program for body-worn cameras. The IBA noted that the POA MOU costs are $2.7 million higher than the five-year outlook, and that a five-year plan update is needed. Councilmembers expressed concerns about the ability to hire 424 positions, community policing, staffing of community relations officers (CROs), and the steep fee increases for entertainment permits, firearms dealers, and other businesses. The police chief stated that all officers are expected to practice community policing and that additional CROs would be considered as staffing increases. Discussion on fees included justification based on cost recovery, with the city attorney explaining that fees must be strictly cost-recovery to avoid being classified as taxes. Several councilmembers requested further justification for the fee increases, particularly for entertainment and firearms permits.
- Fire-Rescue Department Budget: Chief Brian Maynard presented the proposed budget, which includes $10.6 million in new expenditures and 0.24 net FTEs. Key additions: $1.7 million for the East Side Mission Valley Fire Station (opening July 1, 2015), $1.2 million for two fast response squads (Encanto and University City), $1.1 million for three fire academies, $773,000 for the Skyline temporary station, and $632,000 for personal protective equipment. The IBA raised concerns about the use of overtime to fund 32 additional operational posts, noting that the department is projected to exceed its overtime budget by $3.7 million in FY2015, and the FY2016 budget adds only $3.2 million in overtime for the new posts. The IBA also highlighted that the Bayside Fire Station's total project cost is now estimated at $19.9 million, with a funding gap of up to $6.9 million beyond the $5 million general fund contribution and $8 million from Center City Development funds. Councilmembers questioned the cost of presumptive illness coverage for lifeguards, the timeline for the Skyline and Bayside stations, and the overtime budget. The chief acknowledged recruitment challenges for paramedics and noted that the constant staffing model may need to shift to overhiring in the next two to three years as more post-Prop B employees are hired. The lifeguard union advocated for presumptive illness coverage, and several councilmembers expressed support.
Key Outcomes
- No formal votes were taken; the meeting was a hearing to gather information and public testimony.
- The council will continue budget hearings over the following week, with a public hearing on May 11, 2015, at 6 p.m.
- The Mayor is expected to release the FY2015 year-end budget monitoring report and FY2016 May revision on May 19, 2015.
- Councilmember Gloria will issue a budget priorities call memo to council offices for feedback on desired changes to the mayor's proposal.
- Councilmembers expressed hesitancy about approving certain fee increases (entertainment, firearms, holistic health, secondhand/pawn, and massage permits) without further justification and requested detailed breakdowns of enforcement hours and costs.
- Several councilmembers requested additional information on the hiring strategy for 424 new positions, the cost of presumptive illness coverage for lifeguards, and the status of community policing and community relations officer staffing.
- The council will reconvene on May 21, 2015, to review the May revision and the IBA's final report, with a goal of adopting the budget by June 8, 2015.
Meeting Transcript
Good morning, ladies and gentlemen. Uh call the budget review committee meeting of the City Council to order. Start by uh calling the role of Council President Leitner, Councilmember Zaf, Councilmember Cole, Councilmember Kercy, Councilmember Kate, Councilmember Sherman, Councilmember Alvarez, and Councilmember Emerald. Welcome, ladies and gentlemen. This is the first of many meetings that this month with regard to our city's proposed budget. I'm certainly grateful for the opportunity to guide us this council through this budget approval process for the fifth year in a row. And I look forward to working with all my colleagues, the mayor and the public, the IBA and others throughout this collaborative process to review and to finalize next year's city budget. Just note uh that we have come a long way as a city, uh, and I hope that we all can continue with the fiscal discipline that has helped us to get us where we are today. Our goal will be to come up with a budget that serves the needs of the people of this great city, is respectful to our incredible city employees, and ensures that the city continues to live within its means. In the coming week, the public is invited to participate as the council looks at its budgets of the individual city departments and partner agencies and makes decisions about how best to spend our limited taxpayer dollars. As the chair of the budget and government efficiency committee, my goal has been to make the make the city's budget process as transparent as possible to the public to improve our city's financial practices and to continuously find ways to encourage more public participation. That's why I'm so glad to see so many faces in the audience this morning. And that's why we'll also hold a public hearing on the mayor's proposed FY 2016 budget on Monday, May 11th at 6 p.m. in in these chambers, hopefully to be helpful for those who may not be able to get here during the normal work day. Over the next week, uh I'd urge my colleagues to utilize these budget meetings uh to ask the questions uh about specific proposals that you may have and their potential impacts on your districts, as well as to solicit input on proposal alternative proposals that you may have. This is also an incredible opportunity for the public to weigh in on your thoughts on the mayor's proposal and help inform the council's decisions as we move forward. Uh at the end of these hearings, at the end of the week, I will issue a budget priorities call memo uh to my colleagues uh requesting feedback from each office uh regarding desired changes to the mayor's proposal. And lastly, I'd like to share some key dates and reports that will be released during this process. Uh the mayor will issue uh his uh year-in FY 15 year-in budget monitoring report and fiscal year 2016 May revision on Tuesday, May 19th. We will reconvene as a budget review committee on Thursday, May 21st to review and receive these reports. Your memos will be due to the Office of the Independent Budget Analysts by the close of business on Friday, May 22nd, and the items in your memos will be incorporated into the IBA's final report of recommended changes to the mayor's budget, which will be released released on June 3rd. And finally, uh I hope that we will have a budget uh reviewed and approved uh by June the 8th. Uh so that is the schedule that lies ahead. That is the week that is uh we're in for. And with that, I look forward to these discussions going forward. Uh, before we launch into our first presentation, we do have some requests to speak on items not on this morning's agenda. Uh so if you're here to speak about police budgets, fire budgets, anything like that, we'll take you in those items come up next. This is about stuff that isn't particularly on the agenda. We'll start with John Stump, followed by Martha Welch and then Catherine Rhodes. Each of you will have three minutes. So if you can come forward and be prepared, I would appreciate it. We have seats reserved in the front. And Mr. Stump, again, you'll have three minutes. Uh thank you very much, and good morning to all of you. Um later in the day I'll speak about the $12 million gift to public funds. But this morning, uh I provided each of you a memo concerning the opportunity the council has to set goals for each and every department on four of the major challenges that are facing the city of San Diego. Drought, water conservation, uh storm water compliance, climate action plan, and social justice. Um in my letter to you, I suggest that the council ask the mayor to have each department set goals, measurable goal performance goals and objectives in each of those four areas, so that uh each council department would actually have a water conservation goal, a stormwater um prevention goal, a climate action plan goal, and as importantly, a social justice and equity goal. Um I think that the employees of the city of San Diego are very creative and talented people, and they can come up with goals and objectives that are measurable on social justice, climate action, storm water, and water conservation. So I'd like you to consider that as you go through today. And uh if there are any questions, I'd be happy to answer them. I'll be back later about the 12 million dollar gift of public funds. Look forward to that, Mr. Stumpy. Thank you. Arthur Welch, followed by Catherine Rhodes. Good morning, Martha Welch. The 12.4 in the midterm has not in the red room. Sanity, um gas, um, uh the check says um went to um um the governor has the the check.
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