San Diego Budget Review Committee FY2023 Department Budget Hearing – May 5, 2022

The San Diego City Council's Budget Review Committee (BRC) met on Thursday, May 5, 2022, to review the Mayor's proposed Fiscal Year 2023 budget for multiple city departments. The meeting ran from morning into the afternoon, with a break for lunch, and covered the Office of Race and Equity, Library, Parks and Recreation, Cultural Affairs, Special Events and Filming, Compliance, Human Resources, Public Utilities, Stormwater, Real Estate and Airport Management, and General Services. No formal votes were taken; the committee heard staff presentations, IBA analysis, public testimony, and asked questions. Several items were trailed from the morning to the afternoon session. The meeting adjourned to the next BRC meeting on Friday, May 6, 2022, at 9 a.m.

Office of Race and Equity

• Chief Race and Equity Officer Kim Desmond presented the new department's mission to embed equity across city operations through learning and development, equity-center coaching, and inclusive community engagement.
• The proposed FY23 budget is $2.5 million, including a $3 million Community Equity Fund split into two $1.5 million allocations across FY23 and FY24 for a two-year evaluation cohort supporting 20+ organizations.
• Desmong noted the office is codified in municipal code and will outlast the current administration. She requested two additional program coordinators.
• IBA noted total office expenses decrease due to spreading equity fund over two years, and that the department anticipates resubmitting a request for a program manager for the equity fund in the May revised budget.
• Public comments: Francine Maxwell and Imani Roberts Robinson expressed support for the department but urged that equity training be mandatory, not optional.
• Councilmembers expressed strong support for the office. Council President Elo Rivera said she is willing to make funding sacrifices to give the office resources needed. Several members asked about the equity fund cohort model, training requirements, and the impact of not funding all requested positions.

Library Department

• Director Misty Jones presented a proposed FY23 budget of approximately $65.6 million, an increase of $4.8 million (7.9%), and 460.33 FTE positions (increase of 56.1 FTE). The increase is largely the annualization of positions added in FY22 when hourly staff were converted to benefited positions.
• The department filled 207 of 275 budgeted positions, with 68 vacancies remaining. Sunday hours are expected to be restored at 14 library locations by late summer.
• Key budget items include $357,000 for new public-use computers, $350,000 for security services (including naloxone training), a $200,000 increase in the library donation match, and restoration of maintenance services like window washing.
• IBA noted the library's mid-year report projected a $300,000 overage and encouraged monitoring.
• Public comment was extensive: Library Foundation, Friends of the Library, and community members urged the city to exceed the mayor's proposed increases. They cited the never-met 6% ordinance, estimating libraries have been shortchanged by more than $587 million over 20 years, and highlighted needs for materials, maintenance backlog, and benefits for "Do Your Homework" staff (40% turnover). Many San Carlos residents requested funding to advance construction of the new San Carlos Library, and others requested the city include funding for the Oak Park Library.
• Councilmembers welcomed the budget increase, asked about Sunday-hour plans, and noted the department's successful staffing reorganization.

Parks and Recreation Department

• Director Andy Field presented a proposed budget with a $7 million increase and about 97 new positions in the general fund. Major additions include 27 FTEs and $1.3 million for sidewalk vending enforcement (13 park rangers, 11 grounds maintenance workers), 10 citywide park maintenance positions, five FTEs and $555,000 to begin implementing the recreation equity audit recommendations, and $912,000 to convert hourly pool and recreation center staff to part-time benefited positions (net 10.65 FTE increase).
• The department also highlighted new facilities, continued "Come Play Outside" programming, the first-ever GIS position, and restoration of the Balboa Park maintenance special projects unit.
• IBA noted the department's request for 10 FTEs to address the audit was only partially funded (5), and that street sweeping permit revenue is not yet included in the budget; the Treasurer's office may bring a fee item later.
• Public comment included support for the Opportunity Fund, park ranger increases, restoration of restroom facilities, and the $750,000 for dredging Old Mission Dam. Councilmember Moreno strongly questioned why enforcement positions outnumber equity staffing, urging the city to convert street vendor enforcement positions into recreation programming positions.
• Councilmembers asked about the equity audit implementation timeline, pickleball expansion, pool staffing, and the street sweeping optimization plan.

Department of Cultural Affairs

• Director Jonathan Glus presented the FY23 budget with no new staff. The department proposed $85,000 for public art maintenance, $250,000 to begin a citywide cultural planning process, $90,000 for a grants management system, and $10,000 to reinstate the poet laureate program.
• The department completed over 100 hours of technical assistance, a 13% increase in grant applications, and is preparing for World Design Capital 2024.
• Public testimony from arts organizations urged the city to restore arts and culture funding to the pre-pandemic level of $14.3 million. Speakers noted that arts organizations employ 36,000 San Diegans and were disproportionately affected by the pandemic. Anjanette Mariah Remy raised concerns about equity in the grant application and panel review process.
• Councilmembers voiced support for restoring pre-pandemic funding and asked about the cultural planning process and equity in grantmaking.

Special Events and Filming

• Executive Director Natasha Kalera presented a budget with no programmatic changes; the $403,000 reduction is largely due to IT fund transfers. The office highlighted successful U.S. Open and Farmers Insurance Open events, new mixed-age alcohol pilot events, and upcoming major events like Comic-Con and Pride.
• No public comments were made. Councilmembers praised the office and expressed support for returning major events to San Diego.

Compliance Department

• Chief Compliance Officer Christiana Gauger presented a budget that transfers 15 existing prevailing wage positions (with $1.6 million revenue) from Engineering & Capital Projects and Purchasing & Contracting, and adds three positions for department operations, including a deputy director, senior management analyst, and administrative aide.
• Additional requests included funding for a wage monitoring solution and ongoing support for the future surveillance technology ordinance.
• IBA noted two program manager exemption requests are pending council approval.
• Public comment: Chiara O'Laughlin of Center on Policy Initiatives urged increased staffing for worker outreach, dedicated investigators, and a worker justice fund, citing that 80% of workers don't file complaints due to fear of retaliation.
• Councilmembers asked about enforcement methods and supported proactive compliance.

Human Resources Department

• Director Julie Rasco presented a proposed budget increase from $7 million to $8.9 million, adding 10 positions. Key additions include four program coordinators for employee relations and COVID-19 reasonable accommodations, four positions to manage the California for All paid internship program (approximately 1,000 paid interns), $250,000 for a consultant to streamline recruitment/hiring, $200,000 for a total compensation survey, and $157,000 for a labor relations program manager.
• The department highlighted 2,700 participants in virtual courses, 6,000 completed LinkedIn Learning courses, and a new Management Fellowship Program.
• IBA noted un-funded requests, including an additional labor relations program manager, a strategic hiring coordinator, and funds for a management fellowship second cohort.
• Councilmember Elo Rivera questioned whether staffing is sufficient to support the internship program's most vulnerable participants. Councilmembers expressed support for studying hiring processes and funded compensation surveys.

Public Utilities Department

• Interim Director Juan Guerrero and Interim Executive Assistant Director Lisa Salaya presented a proposed $1.7 billion budget (operating and CIP) for water, wastewater, and recycled water services. Major additions include 19 FTEs for Pure Water operations, 13 FTEs for customer support, 12 meter readers, and 11 FTEs for environmental and technical services.
• The budget assumes a 4% sewer rate increase in January 2023 and no additional rate increases; a water cost-of-service study is expected in calendar year 2023. The department proposed updating Council Policy 400-04 to reduce emergency water storage from about 7.2 months to six months, avoiding water purchase increases.
• No increase in water purchases is proposed; reservoir storage will be used instead. Lake Hodges Dam replacement received $1 million initial CIP funding.
• IBA highlighted a nearly $40 million operating increase and 100+ new positions, while warning that major dam repairs could cost hundreds of millions to billions of dollars not yet in outlooks.
• Public comment urged stormwater investment (Climate Action Campaign) and thanked the department for delaying a water rate increase.
• Councilmembers asked about dam safety, customer service backlog, water main breaks, and the San Diego River levy.

Stormwater Department

• Director Chris McFadden presented a proposed budget increase of $14.2 million, all general fund, adding 42 positions (15 for WIFIA implementation, 20 for pump station maintenance, 10 street sweeper operators, and several other staff).
• The department executed its first WIFIA loan to construct $733 million in capital projects. It also completed street sweeping optimization, hired 75 FTEs over the past year, and is developing a community rating system to reduce flood insurance premiums.
• IBA noted the department's budget remains $23.4 million below its request and $65.1 million below its five-year outlook; the stormwater capital backlog exceeds $1.3 billion. Unfunded requests include 31 FTEs for levy maintenance, a green infrastructure team, and additional inspectors.
• Public comment from San Diego Coastkeeper urged more than a WIFIA loan and called for a ballot measure.
• Councilmembers praised progress but raised repeated concerns about unfunded levy repairs, Tijuana River Valley street sweeping frequencies, and equity implications of increased street sweeping fines. Councilmember Moreno requested cost estimates to maintain/expand sweeping in specific southern routes.

Department of Real Estate and Airport Management (DREAM)

• Director Penny Moss presented a $37 million budget (increase of $2 million) and 12 new positions (11 in real estate, 1 in airport management). Positions will address lease administration backlog, appraisal support, and surplus property declarations.
• Lease revenue is projected up $7 million (including $5 million ongoing and $2 million one-time rent deferral repayments). Airport management requests include $1.6 million for tenant-ready repairs along Aero Drive, roof repairs, a property management agreement, lease administration software, runway markings, and an additional grounds maintenance worker for airports.
• Public testimony focused on unleaded aviation fuel at Montgomery-Gibbs Airport. Several speakers, including Quentin Yates and others, urged the city to include $200,000 in the FY23 budget for an unleaded fuel tank. Councilmember Campillo supported this ask.
• Councilmembers asked about the CBP facility at Brown Field, surf camp revenue, holdover leases, and the sports arena redevelopment. Councilmember Campbell asked about vacant city properties for homeless shelters.

Department of General Services

• Director Casey Smith presented a facilities budget increase of $741,000 (three new positions: project officer, construction estimator, program coordinator) and a fleet operations increase of $4.3 million.
• Fleet additions are largely tied to SB 1383 organic waste collection: 1 fleet manager, 12 fleet technicians, 2 fleet parts buyers, and related equipment. The department also requested $1 million for increased fuel costs, $500,000 for an EV infrastructure consultant, $250,000 for overtime, and added safety/training positions.
• IBA highlighted the facilities maintenance funding gap of $593 million in the CIP outlook, and that the current work ratio is 80% reactive vs. 20% preventive maintenance, contrary to best practices (which recommend 70-80% preventive). Unfunded requests included a facilities condition assessment ($2.3M), repair/maintenance contracts ($1.0M), and CIP infrastructure ($17.5M).
• No public comment. Councilmembers asked about EVARC pilots, electrician recruitment, the Othello repair facility timeline, and the climate action plan approach.

Non-Agenda Public Comment

• Andrea Hetero (Southeast Neighbors Together Coalition) asked for dedicated funding for beautification of neighborhoods with high concentrations of foundational Black Americans, including graffiti prevention and signage.
• Lori Saldonia asked the council to question the police department on untested sexual assault evidence kits during the next day's public safety budget hearing, noting roughly 1,800 kits were sent for testing and just under 1,400 completed.