San Diego FY2020 Budget Review Committee Meeting - May 1, 2019

The Budget Review Committee convened on May 1, 2019, to examine Mayor Faulkner's proposed Fiscal Year 2020 budget. The meeting included a moment of silence for the Poway synagogue shooting victim Lori Kay, presentations from the Independent Budget Analyst (IBA), department budget reviews, and public testimony. Council members identified priorities such as homelessness, affordable housing, library and park funding, climate action, and public safety while grappling with a tight budget featuring a deficit closed primarily through one-time funds.

Public Comments & Testimony

• A homeless advocate spoke about representing homeless individuals trying to do the right thing, urging compassion and long-term thinking about future generations.
• Library supporters including the Library Foundation CEO, Friends of the Library, and Library Commission chair advocated for increased program funding and materials budget, noting the current $100,000 programming budget is only $3,000 per branch.
• Ocean Beach Friends of the Library asked for $500,000 in seed money to expand the historic OB Library, supported by Councilmember Campbell.
• MEA union representatives highlighted library security concerns and opposed proposed cuts to park ranger positions.
• Public speakers for Parks & Rec emphasized the importance of park rangers for safety and open space management, and opposed cutting three ranger positions (later stated to be restored in May revise).
• Homeless service and mental health advocates called for shifting from enforcement-driven homelessness response to outreach and long-term housing solutions.
• Community Budget Alliance members requested funding for simultaneous interpretation services at community planning groups, an office of tenant protections, a sustainability grant writer, and a transportation justice coordinator.
• Lifeguard union representatives requested four additional full-time positions, a five percent salary increase for seasonal lifeguards, and raised concerns about recruitment and retention due to low pay.
• Other speakers addressed local parks, street safety improvements in Linda Vista, and support for Chollas Creek restoration and park development.

Discussion Items

Independent Budget Analyst (IBA) Report:

• The IBA presented a high-level analysis of the mayor's proposed FY2020 budget, noting general fund revenues of $1.454 billion (up 7.5%). The mayor faced a $65.6 million deficit, closed by 62% one-time measures, including $30 million in remaining excess equity, $15 million in departmental reductions, and an infrastructure fund gas tax swap.
• The IBA raised concerns about the use of one-time funds for police overtime in Clean SD program, reductions in stormwater, tree trimming, park maintenance, and brush management funding.
• They highlighted that the council has authority to modify the budget but only modest modifications have occurred historically.
• IBA noted that the mayor's budget maintains library hours, recreation center hours, and pool hours, but several council priorities (e.g., expanded homeless outreach, tree inspection) were not fully addressed.

Library Department:

• Director Misty Jones reported a slight budget decrease to $55.7 million, maintaining library hours and programming. Key achievements: new Mission Hills Hillcrest and San Isidro libraries, elimination of fines, and expansion of Library Next program.
• IBA noted that library security funding was not carried forward due to anticipated savings from a new citywide security contract, and that $100,000 for programming was maintained.
• Council members praised library services but expressed concern about aging facilities, technology needs, and the need for a library master plan. Council President Gomez questioned materials budget adequacy and equity.

Parks and Recreation Department:

• Director Herman Parker presented a $5.2 million increase in general fund, adding 12 FTEs for new parks and maintenance. Proposed reduction of 4 FTEs including 3 park rangers (later stated to be restored in May revise) and 1 aquatic tech.
• IBA noted that the brush management funding was reduced by $555,000, reverting to 450 acres cleared per year. Council members expressed strong concern and interest in restoring funding.
• Councilmember Ward called for a Balboa Park improvement fund and strategic plan. Councilmember Campbell asked about Dusty Roads Park staffing and fencing of dog parks.

Homelessness Strategies:

• Chief Keely Halsey presented the city's homeless spending, noting funds are spread across departments. The budget includes 3 new FTEs for program coordination. The $14.1 million HEAP grant supports relocation of women's shelter, safe parking expansion, rental aid, and a flexible subsidy pool.
• IBA expressed concern about continued one-time funding for bridge shelters and storage center, and recommended clarity on future funding stability.
• Council members criticized the heavy use of enforcement funding (police overtime for homeless outreach) and called for a shift to social work-based outreach, stronger performance metrics, and a comprehensive strategic plan.

Sustainability Department:

• Director Cody Hooven presented the first budget for this new department, funded by $755,000 in general fund (triple transfer from last year). The budget supports CAP implementation, community choice aggregation (CCA), and equity indicators. A request for $310,000 for a climate adaptation plan was not funded.
• IBA noted that 91% of CAP-related new funding ($392.2 million) goes to Pure Water, and that tree trimming and CAP monitoring remain underfunded.
• Council members voiced frustration with lack of a comprehensive CAP financial plan and insufficient resources for mode shift and resilience.

Planning Department:

• Director Mike Hanson reported a slight budget reduction, with $100,000 for housing affordability initiatives (lower than $250,000 in five-year outlook). The department will use increased General Plan Maintenance Fee revenue to offset cuts.
• IBA noted that the reduction of $297,000 in non-personnel expenditures could impact community planning, but the department expects to mitigate via GPMF revenue.
• Council members supported continued community plan updates and expressed interest in adding an economist position.

Economic Development Department:

• Director Christina Bibler reported an increase of 1.65 FTEs and restructuring of corporate partnerships. The budget reduces general fund for safe parking by transferring costs to HEAP funds.
• IBA highlighted that the small business enhancement program is underfunded relative to council policy (requiring $2 million vs. proposed $1.2 million).
• Council members questioned tracking of business assists and impacts in underserved areas, and requested data by district.

Development Services Department:

• Director Elise Lowe noted a 10% increase in permitting workload (60,000 permits in 2018). The budget reduces 3 code enforcement positions (vacant). The enterprise fund projects a $3.1 million deficit despite a 4.5% fee increase.
• IBA stated the fee increase analysis was released the evening before and appears justified, but recent special salary adjustments add further pressure.
• Council members expressed concern about code enforcement capacity and inspection turnaround times, particularly for new construction.

Finance Branch – Citywide Programs and Funds:

• CFO Rolando Charvel highlighted the merger of Comptroller and Financial Management, finance academy, and PCI compliance. City Treasurer Liz Correa reported expanding cannabis tax compliance (projected $12.3 million) and adding 5 FTEs for short-term rental tax compliance.
• Finance Department Director Tracy McCraner presented a $3.2 million personnel cost increase due to reclassification of analysts and pension costs. A budget reduction proposal eliminates one FTE, potentially reducing transparency in budget volumes and agency reviews.
• Citywide Program Expenditures include $24 million infrastructure fund transfer, $11.9 million to general fund reserves, and $4.3 million to pension stabilization reserve. The budget also includes $1 million for SDG&E franchise agreement consulting and $300,000 for ADU fee waiver program.
• Debt Management Director Lakshmi Kommi noted the department manages a $3.8 billion portfolio and is planning financing for Pure Water program's $1.4 billion need.
• Risk Management Director Julio Canizales presented a $13.1 million budget with 89 FTEs, using excess reserves to offset operating expenses in public liability and workers' compensation.

Key Outcomes

• No formal votes were taken; the meeting was informational. Council members indicated intentions to restore park ranger positions, increase brush management funding, enhance homeless outreach with social workers, boost library materials and programming, create an office of tenant protections, and fund translation services at planning groups.
• Council President Gomez expressed strong interest in a comprehensive climate action plan financial strategy and equity-focused investments.
• Councilmember Sherman emphasized that housing affordability is a top priority and suggested increasing the ADU fee waiver budget.
• Councilmember Campbell and others urged a unified regional approach to homelessness with wraparound services, and stressed the need for performance metrics.
• The evening public comment session featured over 20 speakers requesting investments in parks, tenant rights, lifeguard pay, and community safety improvements.
• The committee will continue budget reviews over the following days, with the mayor's May revise expected on May 14.