San Diego City Council Budget Review Committee Meeting - May 6, 2019

The Budget Review Committee of the San Diego City Council convened on May 6, 2019, to review proposed fiscal year 2020 budgets for multiple city departments. The meeting included presentations from department heads, independent budget analyst (IBA) reports, public testimony, and council member discussions. No formal votes were taken; the committee will make recommendations to the full council.

Consent Calendar

• No consent calendar items were listed or discussed.

Public Comments & Testimony

• Police Department: Michael McConnell spoke in opposition to increased funding for homeless enforcement, arguing it is ineffective and costly (approximately $8,000 per unsheltered individual). Robert McNamara spoke in favor of the police budget, supporting recruitment and retention funding but raising concerns about the untested rape kit backlog.
• Fire-Rescue Department: Mary Beth Cruden, a University Heights resident, presented a petition with over 600 signatures requesting a one-time budget line item to complete brush abatement in the canyon under the Vermont Street Bridge. Chris Vamos, representing Teamsters Local 911 (San Diego Lifeguards), requested additional lifeguard positions and questioned why lifeguard priorities were not included in the budget.
• San Diego Housing Commission: Michael McConnell spoke in opposition, questioning the effectiveness of current spending on homelessness and asking for more transparency on per-person costs. Joyce Sanyata, John Brady, and Stephen Russell spoke in favor of the budget, supporting increased rental assistance and homelessness prevention efforts, but raised concerns about the use of one-time revenues for ongoing programs.

Discussion Items

Police Department

• Chief Dave Nisleit and Kyle Mukes presented the SDPD FY20 proposed general fund budget of $539 million, a $65 million increase from FY19, with 2,655 FTEs (a net decrease of 1.875 FTEs). Key adjustments included $5.5 million for overtime alignment, $3.5 million for Clean SD expansion, $4.3 million for neighborhood policing (including homeless outreach), and reductions in civilian positions and SWAT training overtime.
• The IBA noted police overtime in the proposed budget totals $35.9 million, a historical high, and raised concerns about the use of one-time funds for ongoing homelessness programs. The IBA also highlighted a reduction of four Police Investigative Service Officer (PISO) positions, from 26 to 22.
• Council members questioned recruitment and retention, attrition rates (10-11 per month), the hot team expansion, and the impact of PISO reductions. Councilmember Sherman requested follow-up on pedestrian safety enforcement. Councilmember Ward expressed concern about the lack of measurable performance metrics for response times.

Fire-Rescue Department

• Interim Chief Stowe and Michelle Yamamoto presented the FY20 proposed general fund budget of $284 million, an increase of $14.7 million from FY19, with 1,302 FTEs (an increase of 61). Major additions included 37 positions for a relief pool to reduce overtime, 9 full-time academy instructors, 6 bomb squad positions, and 6 fire inspectors. The budget also included $820,000 for helicopter maintenance and $520,000 for pilot training.
• The IBA noted that the relief pool is expected to yield a net savings of $300,000, and the academy instructors a net savings of $500,000. Fire overtime in the proposed budget is $36.6 million, a $1.5 million decrease from FY19, but $9.3 million less than projected FY19 actuals. The IBA also noted that three peak-hour engines recommended by the 2017 Citigate report were not funded.
• Council members raised concerns about the wellness program funding, the lack of additional lifeguard positions, and the need for more brush management staffing. Fire Marshal Doug Perry stated that the brush management unit has only 7 staff for 45,000 inspections, and doubling to 15-16 would allow inspections every 18 months instead of every 3.5-4 years.

Department of Homeland Security

• Director John Valencia presented the Office of Homeland Security (OHS) budget, which is a net reduction of $30,000 from FY19, due to over 50% of activities being grant-funded. OHS highlighted its work in emergency management, unmanned aircraft systems, and targeted violence prevention.
• No public speakers. Councilmember Kirsey commended the department and expressed interest in expanding the use of UAVs for city assessments.

Department of Communications

• Director Katie Keach presented the Communications Department budget. Key highlights included City TV broadcasting 144 public meetings (347 hours), a 20% increase in Public Records Act (PRA) requests (on track for 5,800 this year), and a proposed reduction of one senior public information officer position.
• The IBA noted the department requested but did not receive funding for two program coordinators and $272,000 in expenses to support the PRA program, which currently has only 3 FTEs.
• Council members discussed the need for better metrics on PRA workload, social media integration, and the status of the Vision Zero communications plan. Councilmember Kate asked about the social media policy, which is still with the City Attorney's office.

Ethics Commission

• Stacy Fulhorst presented the Ethics Commission budget. The commission has a staff of 5 FTEs, down from 8 ten years ago. The commission requested an additional position to allow training under the current education program manager, who retires in 2021. The mayor's staff indicated the position would be included in the May revise.
• No IBA comments or public speakers. Councilmembers expressed strong support for the commission's work and the need for the additional position.

City Auditor

• Interim City Auditor Kyle Elser presented the Office of the City Auditor's FY20 budget of $4 million with 22 FTEs. The audit committee recommended no cuts from the FY19 budget. The office issued 15 performance audits and 8 hotline reports in FY18, with 100% management agreement on recommendations.
• No public speakers. Councilmembers thanked the office for its work, including the water bill audit and pay disparity report.

San Diego Housing Commission

• Jeff Davis and Tracy McDermott presented the Housing Commission's proposed FY20 budget of $452 million, a $65 million increase. This includes a 14% ($20 million) increase in federal rental assistance funding, expansion of homelessness programs (exceeding $100 million for the first time), and support for the city's bridge shelters and storage connect center.
• The IBA noted the budget relies on $5.2 million in property reserves and $8 million in federal Moving to Work reserves to fund bridge shelters and storage, and that the city's reimbursement falls short by $13.1 million. The commission is reducing its contingency reserve from 5% to 3.5%.
• Public speakers: Michael McConnell opposed, while Joyce Sanyata, John Brady, and Stephen Russell supported with concerns about sustainable funding. Council members discussed the use of property reserves, the waiting list for housing vouchers (90,000 families, 10-year wait), and the need for a housing bond.

San Diego City Employees Retirement System (SDCERS)

• CEO Greg Rodemaker and Controller Ted Lasalvia presented the SDCERS administrative budget for FY20 of $13.7 million, a decrease of $205,000 from FY19. The budget includes 50 positions, a $7.9 million salary and benefits budget, and a $600,000 reduction in legal fees due to resolved litigation.
• The IBA noted that the budget does not require City Council approval, and that investment management expenses are about 0.46% of assets under management. The pension system's assumed rate of return was lowered to 6.5%.
• No public speakers. Council members praised the system's management and conservative approach.

Key Outcomes

• The committee completed budget reviews for eight departments and received public testimony. No formal votes were taken; the committee will incorporate these discussions into its budget recommendations to the full City Council.
• Several departments were asked to provide follow-up information, including police response time metrics, fire brush management staffing needs, Housing Commission program outcome data, and Communications PRA workload details.
• The mayor's office agreed to include an additional Ethics Commission position in the May revise.
• The committee will reconvene the following day to continue budget hearings.