San Diego Budget Review Committee Meeting - May 3, 2017

Note: The agenda for this meeting lists the date as Thursday, May 4, 2017, but the user-provided date is May 3, 2017. This summary uses the user-provided date.

The Budget Review Committee of the San Diego City Council convened on May 3, 2017, at 9:00 AM (per agenda) to begin its review of the Mayor's proposed FY2018 budget. The meeting covered the overall budget overview, the Independent Budget Analyst (IBA) review, and detailed presentations from the Police and Fire-Rescue departments. The session was chaired by Councilmember Barbara Bry. The meeting opened with a moment of silence for a mass shooting that occurred on April 30, 2017, in La Jolla, which left one dead and several injured.

Public Comments & Testimony

• Non-Agenda Public Comment: Martha Welch expressed confusion about the budget structure, alleging funds are hidden and not properly allocated to departments. Former Councilmember Ed Harris played an audio clip of a 911 call regarding a drowning at Pacific Beach, criticizing the dispatch of fire instead of lifeguards. John Stump requested a public hearing on $13.1 million in zoological maintenance expenditures and questioned subsidies for private entities.
• IBA Budget Review Public Comment: Nicole Capretz (Climate Action Campaign) urged the council to require a five-year roadmap for Climate Action Plan implementation, noting that only 0.5% of the general fund is allocated and no evaluation mechanism exists for capital projects. Gracie Uriarte and Amanda Lee (ACLU) called for a nationwide, transparent search for the next police chief with community input, requesting at least $140,000 in funding. John Stump repeated his concerns about subsidies and reimbursement for city services.
• Police Department Public Comment: Over a dozen speakers, mostly from District 1 (La Jolla, Pacific Beach), testified about rising property crimes, slow response times, and understaffing. Brian Marvel (POA) urged funding for overtime to maintain minimum staffing and called for competitive compensation. Many residents described burglaries, vandalism, and drug activity, requesting increased police funding and a national search for the next chief. Jennifer McElvaney cited statistics: 1,832 officers vs. 2,128 in 2009, and only 11.8 officers per 10,000 residents.
• Fire-Rescue Department Public Comment: Ed Harris (lifeguard) criticized cuts to lifeguard services, including elimination of the vessel replacement fund and advanced lifeguard academy, warning of increased drowning risk. John Stump and Martha Welch made brief statements. Alan Aralado (Local 145) supported the budget but noted that the department is not truly fully staffed in terms of meeting response time goals, and that firefighter fatigue and attrition are concerns.

Discussion Items

IBA Budget Overview

• Andrea Tevlin presented the IBA's review of the FY2018 proposed budget ($1.4 billion, 5.3% increase from FY2017). The $81 million deficit is mitigated using pension reserve, excess risk management reserve, capital outlay fund, and reductions (including $22.3 million in departmental cuts). Key reductions include: Penny for the Arts, park maintenance, tree trimming, library programming, stormwater (80% reduction in education outreach, 30% reduction in master maintenance), and two code compliance officers. The IBA noted that council priorities (police recruitment/retention, police technology, homeless programs, Connect to Careers) were only partially addressed. The police recruitment budget remains at $50,000. The IBA identified three major fiscal challenges: police officer recruitment/retention, financing deferred capital backlog, and stormwater permit compliance ($3.1 billion needed through FY2040).
• Councilmember Alvarez emphasized the council's authority to modify the budget and urged prioritization of unfunded items (police recruitment, technology, code enforcement, Penny for the Arts). Councilmember Ward requested to see the list of $23 million in rejected department reduction ideas. Councilmember Cate noted the need to balance priorities given the $81 million deficit and warned of a similar deficit in FY2019.

Police Department Budget

• Chief Shelley Zimmerman presented the proposed police budget of $463.8 million (2,653 FTEs), a $25 million increase primarily due to pension and benefit costs. Key additions: $4.6 million in overtime (zero-based review), six supplemental positions, $150,000 for property room relocation, and two grant-funded crime lab positions. Key reduction: $3 million in extension-of-shift overtime (dependent on zero-based budgeting outcome). The department has 1,826 filled sworn positions out of 2,039 budgeted (213 vacancies). Attrition is 13 officers per month; academy applicant pool is down 36%.
• The IBA noted that the $4 million one-time compensation addition from FY2017 (uniform allowance) is removed, and the $50,000 recruitment budget is unchanged. The overtime budget is $23.2 million, but the department is projected to spend $26 million in FY2017. The IBA also noted that the FY2018 budget does not include funding for a nationwide search for a new police chief (estimated at $50,000-$140,000).
• Councilmembers expressed strong concern about retention and recruitment. Councilmember Zapf and Ward shared personal stories of crime. Councilmember Alvarez called for a data-driven analysis of why officers leave. Councilmember Gomez questioned the effectiveness of increasing positions when vacancies persist. Councilmember Sherman suggested using headhunters. Councilmember Bry supported a nationwide search with community input. Council President Pro Tem Kersey asked about retirement eligibility (600 officers in next five years).

Fire-Rescue Department Budget

• Chief Brian Fennessy presented the proposed fire-rescue budget of $258.2 million (1,231 FTEs), a net increase of $21.4 million and 10 FTEs. Key additions: replacement of self-contained breathing apparatus ($1.1 million), Bayside Fire Station (7 FTEs, $860,000; opening Dec 2017), San Pasqual Valley fast response squad (6 FTEs, $789,000), five dispatchers for emergency command center, and $242,000 for radio replacement. Key reductions: only one 24-recruit academy (down from two 48-recruit academies), elimination of advanced lifeguard academy ($232,000), elimination of ongoing lifeguard vessel replacement fund ($437,000 transfer to general fund), and $500,000 in fuel savings. The department expects to reach full staffing by June 2017.
• The IBA concurred with the academy reduction, noting that full staffing is expected. The IBA also noted that the proposed budget includes $226,000 for IT upgrades to lifeguard mobile data tablets and GPS, addressing a key recommendation from the City Gate lifeguard dispatch study.
• Councilmembers questioned the chief about the San Pasqual squad, the paramedic training institute, and the impact of cuts on lifeguard services. The discussion was cut short by the noon break; questions were deferred to the afternoon session.

Key Outcomes

• No votes were taken during this session; it was a review and public hearing. The committee will reconvene at 2:00 PM to continue with Fire-Rescue questions and Homeland Security.
• The council will issue final budget modification priority memoranda on May 22, 2017. The IBA will issue a final report on June 1, 2017. Final budget adoption is scheduled for June 5, 2017.
• The IBA recommended that the council consider using remaining charter lease termination payment, excess equity, capital outlay fund, and alternative budget reductions to fund priority revisions. The IBA also urged the council to focus future commercial paper/bond financing on unfunded capital projects (sidewalks, parks, fire stations) rather than streets.
• The police department will continue to monitor overtime and staffing; the council expects a data-driven plan for recruitment and retention. The search for a new police chief remains a key priority, but funding is not yet allocated.
• The fire-rescue department will proceed with the pilot paramedic training institute and the new Bayside Fire Station. The council will consider the financial impacts of the City Gate fire station recommendations (12 new stations) in future budgets.