San Diego Budget Review Committee Hearing on May 10, 2016: Housing Commission, Civic San Diego, City Clerk, and City Auditor Budgets
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San Diego Budget Review Committee Hearing - May 10, 2016
The San Diego City Council Budget Review Committee, chaired by Council President Todd Gloria, met on May 10, 2016, to review the proposed fiscal year 2017 budgets for the San Diego Housing Commission, Civic San Diego (the successor agency to the former redevelopment agency), the City Clerk, and the City Auditor. The meeting included non-agenda public comments, technical reviews, agency presentations, Independent Budget Analyst (IBA) comments, and committee discussion.
Public Comments & Testimony
- Martha Welch criticized the city budget for allegedly prioritizing pension and manager salaries over fire stations and housing, claiming the budget is "wrong."
- Catherine Rhodes spoke on homelessness, arguing that the city spends $2.4 million from the general fund to "harass the homeless" (e.g., waste reduction, prosecution) rather than solving the problem. She also raised concerns about the successor agency's failure to produce CAFR reports for 2011–2015 and potential loss of $52 million.
- David Ross echoed concerns about homeless harassment, citing the placement of rocks as a liability, and requested a response.
- Todd (unidentified) discussed homelessness population growth and criticized the use of rocks, warning of injury risks.
- Stephen Russell (San Diego Housing Federation) urged the council to dedicate a significant portion of redevelopment property tax trust fund (RPTTF) "boomerang funds" to affordable housing in communities that suffered disinvestment, noting that a dollar locally can leverage five dollars from state and federal sources.
- Martha Welch (second appearance) called the homeless efforts "crap" and claimed long waiting lists for HUD housing.
- Catherine Rhodes also spoke during the Civic San Diego item, requesting a state audit of the successor agency and Low Moderate Income Housing Asset Fund, and noting a 4.3% merit pay increase.
- During the City Clerk item, she requested simpler website navigation for budget documents and more consistent document packages.
- During the City Auditor item, she requested an audit of the successor agency and housing fund, claiming half a billion dollars could be preserved.
Discussion Items
San Diego Housing Commission (SDHC) Budget
- Technical Review: Adrian Del Rio (Financial Management) noted the proposed budget of $368 million (up $43.1M or 13.2%), driven by increases in federal Section 8 and Moving to Work funds, and affordable housing funds. The budget includes 20 new FTEs and $22 million for capital improvements on commission-owned properties.
- SDHC Presentation: Jeff Davis and Tracy McDermott outlined key initiatives: the Thousand Homeless Veterans Initiative ($10 million), the Monarch School Project, and taking property management in-house for cost savings. The agency forecasts assisting over 15,400 families and investing $22 million in property rehabilitation.
- IBA Comments: Trisha Tackey noted the budget was amended to include an additional $4.6 million in CDBG funds, and that a green physical needs assessment identified $200 million in capital needs over 20 years. She suggested the council request a multi-year rehabilitation plan.
- Committee Discussion: Councilmember Sherman expressed support, questioning the cost savings of in-house management. Councilmember Zap inquired about state funding (Prop 41) and the federal HUD formula for homeless funding. Councilmember Lightner praised innovative programs and urged addressing housing affordability. Councilmember Cole raised concerns about homeless outreach in District 4. Chair Gloria noted the need for regional coordination and suggested creative solutions for outreach. The committee acknowledged the commission's strong performance.
Civic San Diego (Successor Agency) Budget
- Technical Review: Adrian Del Rio presented the $7.7 million administrative budget (up $258k or 3.5%). Notably, the California Department of Finance (DOF) has questioned $3.6 million in project management costs, with a response due May 17, 2016. If denied, up to $1.8 million may be non-reimbursable.
- Civic San Diego Presentation: David Graham and Wanda Nations reviewed the successor agency's ROPS 10 and the agency's accomplishments (e.g., Bayside Fire Station, Horton Plaza Park, affordable housing investments). Pamela Rojas detailed the FY17 budget, proposing fee increases (CPI escalation) and noting 40 FTEs.
- IBA Comments: Charles Modisette reiterated the DOF issue and noted that the IBA found no major changes. He highlighted the risk of delayed project implementation if project management costs are denied.
- Committee Discussion: Councilmember Zap expressed concern about the uncertainty, noting previous instances where DOF denials impacted the general fund. Councilmember Cole was excited about the Hilltop and Euclid site and Valencia Business Park. Councilmember Lightner asked about vacancies (five) and turnover (six). Councilmember Kote inquired about the EB5 program and TOD fund timeline. Councilmember Alvarez emphasized diversifying revenue sources and suggested using RPTTF funds for affordable housing and community investments. Chair Gloria requested a report back on the DOF decision and urged progress on the operating agreement and reuse of the old Main Library.
City Clerk Budget
- Presentation: Liz Malin highlighted the department's achievements, including passport fee revenue ($100,005 in FY16 to date), digital archives, and an Open Window Award. She requested $270,000 in additional funding and one new Program Coordinator position to support administrative functions, IT coordination, and volunteer programs.
- IBA Comments: No additional remarks beyond noting the IBA's approval.
- Committee Discussion: Councilmembers praised the department's performance. Councilmember Sherman queried election cost projections for November 2016; Malin stated she could not provide an accurate estimate until after the June election. Councilmember Lightner asked about support needs and encouraged use of provisional employees. Councilmember Alvarez asked about electronic options for voter pamphlets and cost savings. Chair Gloria supported the enhancements and noted the department's efficiency.
City Auditor Budget
- Presentation: Eduardo Luna reported a budget of $3.8 million with 22 FTEs, no additional requests. He highlighted that 100% of 110 audit recommendations from FY2015 have been agreed to by management, and the department won its sixth consecutive Knighton Award for performance audits. He noted IT audits have begun.
- IBA Comments: Lisa Byrne confirmed the Audit Committee recommended the budget without modification on April 27, 2016.
- Committee Discussion: Councilmember Sherman praised the audit team's effectiveness. Councilmember Lightner requested inclusion of an audit of Civic San Diego in the FY17 work plan and suggested audits of street repair costs, parking facilities, and DIF funds. Councilmember Kote asked about vacancy rates (two vacancies) and recruitment challenges, particularly for IT auditors.
Key Outcomes
- No formal votes were taken; the committee heard presentations and discussed each budget.
- The Housing Commission budget received broad support, with committee members acknowledging its innovative programs and urging continued focus on homeless outreach and affordable housing.
- For Civic San Diego, the committee awaits the DOF determination on project management costs (due May 17, 2016) and expects updates on the operating agreement, the reuse of the old Main Library, and the TOD fund.
- The City Clerk's budget was well-received; the committee expects a revised November election cost estimate after the June election.
- The City Auditor's budget was unanimously recommended by the Audit Committee and supported by the committee; members suggested potential audit topics for the FY17 work plan.
- Committee members requested follow-up items, including a report on DOF's decision and a multi-year rehabilitation plan for Housing Commission properties.
Meeting Transcript
All right, good morning, ladies and gentlemen. I will call the budget review committee hearing of the San Diego City Council to order. My apologies for being a few minutes late when you're waiting for the elevator in this building. You're really just ten minutes away from downtown. So I I um apologize for that. Maybe we can address that through the budget process. We'll see. Um a quorum is present this morning, uh, consisting of uh Ms. Lightner, Miss Cole, Mr. Kate, Mr. Sherman, and myself. Um, I know that Miss Emerald will not be able to join us, and Mr. Kirsey is not also able to join us today, so um, we're wish them both well. Uh, we'll go right to non-agenda public comment. This is items on this morning's agenda that are actually not on today's agenda, but you'd still like to talk to us anyway. Hopefully, they're within the jurisdiction. If they're not, I'll let you know. Um, we'll start this morning with uh Martha Welch, followed by Catherine Rhodes, and then David Ross. Um, and my man cow, my maybe. And the budget is supposed to be six other uh but now we voted that, but you don't match it everywhere. The payroll is all they get fifty million. That's all it matched that's the highest people in the city and the county. Housing thirty three million over that. That's over thirty million. Remember, we built it in sec in nineteen sixty two. And if you have the route to go through the park, not really. The four uh uh four uh on mission gal um fires, 40 is not there. I walked over there, it's a lie. And that's why the the the lies, but that's why the um EUTs on $10 probably, and also um the fires is low as paid. And we and the survey were like public service, but uh you don't do that because the uh it's not you don't do the what we'd like because the pension is high, 30 million or a million of budget of the highest pension. That's why. And I saw also uh all the all the managers get uh uh more money than ever in this kids' city because they have 11% raise, but not the employees because of pension, they get more money. So the budget is wrong with this because um there's no fire station down there, it's a lie, and the payroll is wrong in housing. I never seen that money to people that much over a million, uh 33 pias over a million. 33. You know how much that is for housing? You you know that Ms. Rhodes, followed by Mr. Ross. Um, hello, I'm here about homeless again, and just going through your budget through the different departments, you know, environmental services are having 18.24 or 2 million dollars for waste reduction to um harass a homeless, one heavy truck driver for 56,000, two city attorneys in the neighborhood prosecution unit to prosecute the homeless. Um so you have a total of 21 people or 2.4 million dollars that is it's going to be used from your general fund to harass the homeless instead of solving the homeless problem. And um, you know, you you guys spent $56,000 on rocks. That was just for one set of rocks. But since then, there's been many drop-off of big rigs and war rocks all over the place. I don't know how much that is. Um I did do a public records request at one time to see how much how many people have been ticketed and put in jail, how many homeless people, but I I just never get that information back to me. Um, so I don't know what it is. Um, and one thing I want to mention is um SB 107. That was a law that was approved in September of last year to change things to do with the window of the secessor agency and redevelopment, which I'll be talking about at that time. Um, but what it says is that you can only have a 3% max cap.
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