San Diego Budget Review Committee Meeting on FY2021 Budget - May 4, 2020
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San Diego Budget Review Committee Meeting on FY2021 Budget - May 4, 2020
The Budget Review Committee of the San Diego City Council met on May 4, 2020, to review the Mayor's proposed FY2021 budget amid the COVID-19 pandemic. The meeting covered the Independent Budget Analyst (IBA) review, departmental budget presentations for police, fire-rescue, homeland security, finance, and other city services, as well as public testimony. No votes were taken as items were informational.
Consent Calendar
- No consent calendar was presented.
Public Comments & Testimony
- Orlando Gonzalez (Secretary Treasurer, CWA Local 9509) expressed concern about the proposed elimination of 25 first responder positions and urged evaluation of the city's wireless contract with FirstNet for potential cost savings.
- Elvira O'Neal (caller) expressed concern about the elimination of STAR/PAL police officers and the reduction in Clean SD overtime, and requested more patrol in District 4.
- Sally Small (caller) voiced support for STAR/PAL and concern about funding for arts and cultural organizations.
- Alora Calderon (Director, Employee Rights Center) opposed cuts to the Living Wage and Minimum Wage enforcement office, arguing workers need more protections during the pandemic.
- Dr. Derek Robinson (Center for Policy Initiatives) opposed cuts to the Living Wage office, stating it sends a message that businesses can violate labor laws.
- Lorena Guzmán (worker, Employee Rights Center) opposed cuts to the Living Wage office, emphasizing the need for worker protections.
- Joy Sanyata (public comment) thanked the council and staff for their work.
Discussion Items
- IBA Review of FY2021 Proposed Budget – Andrea Tevlin (IBA) presented the analysis, highlighting a projected $258 million revenue loss due to COVID-19, a proposed budget of $1.5 billion (down $50 million from FY2020), and 278 position reductions. The budget uses $54 million from the general fund emergency reserve, defers reserve contributions, and reduces funding for parks, libraries, arts, and capital projects. The city received $248 million in CARES Act funding, but eligible uses are still being determined.
- Police Department Budget – Chief David Nisleit presented a $566 million budget with a net reduction of 21 FTEs. Proposed cuts include elimination of the STAR/PAL program (1 sergeant, 5 officers, 1 clerk), reduction of helicopter flight hours, and reduction of overtime. The department will seek $4.3 million in May revise for neighborhood policing overtime. Councilmembers expressed concern about overtime levels and the impact of STAR/PAL cuts on at-risk youth.
- Fire-Rescue Department Budget – Chief Colin Stoll presented a $286 million budget with a net increase of 37 FTEs for the relief pool and 9 for the new North University City Fire Station. Proposed cuts include elimination of the Fast Response Squad in South University City and reductions in swift water rescue training. The IBA noted the department's overtime budget may be insufficient.
- Office of Homeland Security – Chief Nisleit (also presenting for OHS) outlined a $2.6 million budget with 18.98 FTEs. The office coordinates emergency management and disaster cost recovery. No significant cuts were proposed.
- Department of Finance – Matt Vespey (Director) presented a $1.1 million reduction and 6.8 FTEs cut, primarily in customer support functions. The department is adapting to remote work.
- City Treasurer – Liz Carey presented a budget with reductions of 9 positions (general fund) and 3 parking meter technician positions. The department expects increased cannabis business tax revenue but lower parking revenue.
- Debt Management – Lakshmi Kommi presented a reduction of 3.5 FTEs, mostly vacant or retiring positions. The department continues to manage bond issuances and refinancings.
- Risk Management – Julio Canizal presented a $12 million budget with a net reduction of 5 vacant positions and $1.1 million. Staff caseloads are already above industry standards, raising concerns about meeting state deadlines.
- Purchasing and Contracting – Christina Proulta presented a budget with reductions of 5 positions in procurement and 6 in publishing services. The department will reduce inventory by $2.6 million.
- Citywide Program Expenditures – Adam Jones presented a $59 million decrease from FY2020, driven by deferrals of reserves and infrastructure fund contributions, and use of stadium sale proceeds for debt service.
- Special Promotional Programs – The TOT-funded budget is reduced by $18.5 million. Arts and culture funding is cut by $5.7 million (50% reduction), and economic development tourism support is eliminated. Parks and recreation reimbursement from TOT is reduced by $8.6 million.
Key Outcomes
- No votes were taken; all items were informational.
- Councilmembers expressed intent to explore alternative funding sources (e.g., CARES Act, municipal liquidity fund) to restore some cuts.
- Several councilmembers indicated they would not support creating new departments during the budget crisis.
- The IBA noted the budget is structurally unbalanced, using one-time resources for ongoing expenses.
- Further budget revisions (May Revise) are expected on May 19, and the final budget will be voted on in June.
- Council President Gomez requested that all departments provide data on remote work feasibility and potential savings.
- Chair Bree suggested creating a "suspension list" of new programs and exploring voluntary 4-day workweeks for city employees.
Meeting Transcript
Good morning. Per executive order 29-20, which suspends certain requirements of the Brown Act. Some of the council members will be participating via teleconference, and no members of the public will be in attendance at the meetings in the interests of public health and safety. In addition, this meeting is being televised and live streamed on the city's website, and the clerk and council committee liaison have made arrangements for the public to comment via telephone and electronically. We appreciate the public's cooperation. I'm Barbara Bree. I chair the budget review committee, and I will now call the meeting of Monday, May 4th, 2020 to order. We have several members of the committee and staff calling via teleconference. Clerk, please proceed. Yes, for the purposes of the roll call, those on teleconference include Councilmember Campbell, Councilmember Montgomery. I understand that Councilmember Kercy will be calling in a little bit later. We do, however, also have Councilmember Kate and Councilmember Moreno on the line. Each council member will be watching the meeting from their remote location via City TV. And they are live on our teleconference over chambers where they will participate in this meeting remotely. Those council members present in chambers are Councilmember Sherman, Councilmember Ward, Council President Gomez, and Council President Pro Tem Barbara Bree. Also on the teleconference line is Deputy City Attorney Paige Folkman. For purposes of this meeting, written comments submitting submitted using the public comment form prior to the start of the meeting have been distributed to the council and posted online. All written submissions received after the start of the meeting will be made a part of the permanent record. These comments will no longer be read into the record because we are now able to provide for phone in live public testimony from the public. The public may call in following the instructions posted on the agenda by dialing 619-541-6310 and entering conference ID 105-579 and then pressing pound to be placed in the queue for public comment. When the item you wish to speak to is introduced, please do not call in prior to that time. A slide will go up on City TV to let you know that public comment period is open. When the phone queue is empty, the public comment period will be closed. This same process will be used for each agendized item. When you are in the queue, you will be able to hear the meeting and all others that are providing comment. You will know that it is your turn to speak when you hear the system prompt saying your phone has been unmuted. When you hear the prompt, immediately state your name and make your comment. Each speaker will have one minute. This is not a question and answer period. This is your time to provide a statement to the council. Once you have concluded your statement within the allotted time, the call will be ended. If you wish to provide comment on other items on the agenda, you should call back during those comment periods and will be placed in the queue for those items. If you call in during a non-comment period, your call will not be taken. Please monitor the meeting and ensure that you are calling at the appropriate time. We appreciate your patience and participation as we aim to provide the best possible access during these unprecedented times. The public may view the meetings on public television on City TV Channel 24 for Cox Communication and Time Warner Cable or Channel 99 for ATT, or view the meeting online by going to the City Clerk homepage at Sandiego.gov and selecting the City Council Live Webcast blue button on the right of the page. Thank you, Clerk, for reviewing those instructions for the benefit of the public. Thank you for all your efforts in making this happen. It went really well last Thursday night. Is there any committee comment from Council? No. Okay, great. I think any city attorney, IBA, Merrill staff comment. Nope. No. Great. Okay, we will now move uh take up our information agenda. Clerk, please introduce item one. Yes, item one is the IBA review of the FY21 proposed budget. I am now unlocking this conference is unlocked.
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