San Diego Budget Review Committee Meeting - May 10, 2022
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San Diego Budget Review Committee Meeting - May 10, 2022
On May 10, 2022, the Budget Review Committee held its final hearing on the proposed FY2023 budget, receiving presentations from multiple city departments and agencies. The meeting covered the San Diego Convention Center Corporation, San Diego Housing Commission, San Diego City Employees' Retirement System (SDCERS), Office of the City Attorney, Office of the City Auditor, Office of Boards and Commissions, Commission on Police Practices, Government Affairs Department, Personnel Department, Ethics Commission, City Council Administration, and the Office of the Independent Budget Analyst. No formal votes were taken; recommendations will be considered for the May Revise.
Public Comments & Testimony
- San Diego Housing Commission: Multiple speakers urged the city to fund a permanent housing stability fund to prevent homelessness, noting that 53% of San Diego households are renters and many are rent-burdened. Speakers also expressed support for rapid rehousing programs and emphasized that prevention is more cost-effective than addressing homelessness after it occurs.
- Office of the City Attorney: Colleen Cusak (sp?) stated that the city attorney had not requested funding to provide discovery in infraction cases, despite a court ruling that it is the city attorney's duty. She claimed thousands of defendants have been denied discovery since 2017.
- Commission on Police Practices: Public speakers expressed frustration with the backlog of cases and the lack of community engagement in the transition process, requesting a "meet and confer" with the community and transparency regarding an MOU.
- Other Items: Public comments on the convention center, ethics commission, and other items were minimal or nonexistent.
Discussion Items
San Diego Convention Center Corporation
- Presentation by President/CEO Clifford "Rip" Rippeteau and CFO Martin Maddox. They reported a net operating loss of $11 million for FY22 (better than the projected $13.6 million loss) and projected an $5.3 million operating loss for FY23. The city's total support for FY23 is approximately $16 million, including $12.1 million in debt service, $1.2 million in dewatering costs, and $2.7 million for the marketing agreement. The corporation ended FY22 with strong reserves ($24 million) due to federal funding from the emergency intake site for unaccompanied children and PPP loan forgiveness.
- Capital needs over the next five years total $105 million, and a 20-year comprehensive facility condition assessment is underway. Immediate priorities include a West Building roof replacement (possibly through an energy savings contract), carpet modernization, and HVAC/electrical upgrades. IBA noted the need for a long-term funding plan independent of Measure C.
- Councilmembers thanked staff for humanitarian efforts during the pandemic (Operation Shelter to Home and the emergency intake site) and emphasized the city's responsibility to maintain this city asset.
San Diego Housing Commission
- Interim CFO Suket Theal presented a proposed FY23 budget of $595 million, a slight decrease from FY22 due to the wind-down of COVID-19 rental assistance. Key programs include 16,000 housing choice vouchers, $15 million for affordable housing acquisition, $13 million in gap financing, and $25 million to reduce debt on the housing portfolio. $131 million is allocated for homelessness programs.
- IBA highlighted concerns about the transition of three city-funded rapid rehousing programs from the Housing Commission to the city's Homeless Strategies and Solutions Department. There was confusion over funding levels; the mayor's office clarified they are not winding down the programs and will work to maintain current levels. Council President Elo Rivera noted there was a $1 million reduction in general funds for rapid rehousing in the proposed budget, but state grant funding is available.
- Councilmembers expressed support for a housing stability fund and for expanding first-time homebuyer programs. IBA recommended a narrative budget format to improve transparency.
San Diego City Employees' Retirement System (SDCERS)
- CEO Greg Rodemaker and Controller Ted Lasalvia presented the administrative budget of $16.6 million for FY23, approved by the SDCERS Board in March. The budget includes increases for salary and fringe benefits (true-up from prior year) but a decrease in rent due to renegotiated office lease. The investment portfolio is $10.3 billion; the FY21 return was 24.9%.
- IBA noted that SDCERS budget does not require council approval; the city invoices SDCERS for employee costs. Councilmembers asked about market performance in 2022 and the timeline for a new experience study (FY23 valuation affects FY25 ADC).
Office of the City Attorney
- City Attorney Mara Elliott presented a $72.2 million budget request (increase of ~5% over FY22). The office requested additional positions for infrastructure legal support, real estate and airport management, and a conservatorship/treatment unit. Key unmet requests include a centralized Public Records Act (PRA) office, enhanced security at the CCP Building, and reduction of the vacancy factor from $2.1 million to $750,000.
- Councilmembers supported the conservatorship unit (Campbell, von Wilpert), additional victim services coordinators, and the PRA office. IBA noted the office's concern that the vacancy factor is too high and leads to understaffing.
Office of the City Auditor
- Auditor Andy Hanne presented the $4.57 million budget for 22 FTEs. Notable recent audits include the city's lease management, equity in recreation programming, CARES Act funds, and major building acquisitions (recognized nationally). The office did not request additional funds but noted that if a ballot measure for independent legal counsel passes, a mid-year adjustment may be needed.
- Councilmembers praised the auditor's work and supported the budget.
Office of Boards and Commissions
- Director Shida Warren-Dardy presented a $786,000 budget for 5 FTEs, a slight decrease. Accomplishments include a new website and revival of the Commission on the Status of Women. The office is focused on clearing a backlog of appointments and filling vacant seats.
- Council President Elo Rivera and others expressed support for additional staffing and technical support for commissions, including the Youth Commission.
Commission on Police Practices
- Interim Executive Director Charmaine Mosely presented a $2.5 million budget (92% increase from FY22), largely due to annualization of positions added in FY22. The commission is still transitioning from the old CRB to the new independent model. Significant challenges include a backlog of cases and declining commissioner numbers (down to 13, with only about 10 active).
- Councilmembers expressed support for the commission and noted the need for implementation of the ordinance and more community outreach.
Government Affairs Department
- Director Adrian Grand presented a $1.2 million budget (decrease of $172,000 from FY22, mostly due to a technical adjustment). The department secured over $85 million in state/federal funding for city projects, including $50 million for Pure Water and $8.4 million for Ocean Beach Pier. They are working to restore the budget to pre-pandemic levels via the May Revise.
- Councilmembers praised the department's role in securing external funding and supported restoring the budget.
Personnel Department
- Assistant Personnel Director Anne Lemen-Bond presented the budget, noting a restoration of half of a 4% reduction from FY21. The department requested full restoration of the 4% ($389,000) and an additional 12 positions to address hiring delays. Currently, the department has 66 filled positions out of 69 budgeted non-hourly positions.
- IBA indicated that service levels have declined—time to issue certified lists increased from 11 to 16 days (no recruitment needed) and from 54 to 74 days (with recruitment). Councilmember von Wilpert is leading a working group on hiring reform.
Ethics Commission
- Executive Director Sharon Spivak presented a $1.5 million budget, essentially flat. The commission has five employees and handles ethics training, advice, campaign audits, and investigations. They are filling one vacant program manager position.
- Councilmembers appreciated the commission's quick advice and supported the budget.
City Council Administration
- Director Mary Ann Wallace presented the council administration budget, which includes $20 million for 119 FTEs across nine council offices. The proposed budget equalizes office budgets for personnel and non-personnel costs. However, CPPS (Community Projects, Program, and Services) allocations remain unequal, based on prior year savings. IBA presented options: either equal CPPS or set a minimum and distribute remaining based on savings.
- Council President Elo Rivera requested additional staff support for committee operations (to assist Ty Birch) and noted that current CPPS disparities are due to historical inequities. Councilmembers generally supported equalization and the need for more administrative support.
Office of the Independent Budget Analyst
- IBA Charles Modica presented the $1.2 million budget (10 FTEs), a slight decrease. He requested $50,000 for a consultant to analyze major real estate transactions and an additional analyst position. The office has been at 10 staff for 12 years despite increased workload, including new committees and public outreach.
- Councilmembers strongly supported both requests, citing the growing complexity of city business and the need for independent analysis, especially for real estate deals.
Key Outcomes
- No formal votes were taken; all items are informational and will be considered for the May Revise and final budget adoption.
- Councilmembers expressed clear support for funding the housing stability fund, additional positions for the Personnel Department, the city attorney's vacancy factor reduction, and the IBA's requests.
- The city's government affairs budget is expected to be restored to pre-pandemic levels via the May Revise.
- The Council President will advance a proposal to restructure council committee support and equalize CPPS allocations.
- The Mayors office committed to maintaining rapid rehousing funding at current levels.
Meeting Transcript
Good morning. Until further notice, the budget review committee meetings will be conducted pursuant to the provisions of California Government Code Section 54953E, added by Assembly Bill 361, which allows the city to use teleconferencing and to provide the public an opportunity to address the city council committee via a call in option or an internet based service option during a proclaimed state of emergency. While the public is allowed to attend the meetings in person, we encourage you to maintain six feet of social distance as well as California mask guidelines where masks are strongly recommended. In addition to being able to attend in person, this meeting is being televised and live streamed on the city's website. And the clerk and council committee liaison will continue to make arrangements for the public to comment using the Zoom webinar platform. Additionally, members of the public who wish to provide virtual testimony must enter the virtual queue by raising their hand before the queue closes. The queue will close when the last virtual speaker finishes speaking or five minutes after in-person testimony ends, whichever happens first. This will allow for better meeting management between the two platforms and ensure the council is able to manage and conduct city business. We appreciate the public's cooperation. Our deputy clerk, Deanna Fuentes, will go over the specifics of how the public can participate and give their public testimony. I will now call the budget review committee meeting of Tuesday, May 10th, 2022 to order. Deputy Clerk, please call the roll. Thank you. Committee member Lakava. Present. Committee member Campbell. Here. Committee member Whitburn. Here. Committee member Montgomery Step. Present. Committee member Campillo. Committee member Moreno. Moreno President. Committee member Elo Rivera. Present. And Chair Kate. Here. We will now go to committee member city attorney, IBA or mayoral staff comments. Harry None, just welcome to the last day. You've made it. We're in the home stretch. We'll now go back to the Deputy Clerk. Please proceed. If you are in person, please complete a speaker slip located at the entrance of chambers and place it on top of the box indicated at the speaker's lectern with the blue arrow at the front of the room. Please do so in a timely manner to ensure proper meeting management. In-person testimony will conclude before virtual testimony begins. Members of the public can also join the webinar by computer, tablet, or smartphone by accessing the link which is listed online in the preamble language of the agenda and on the city's webpage. If you need to participate by telephone, you may dial 1 669 254 5252. Webinar ID 160 417 1840 Pound. This information is also available on the agenda and will appear on the screen during the public comment period for each agenda item. As noted by the committee chair, members of the public who wish to provide virtual testimony must enter the virtual queue by raising their hand before the queue closes. The queue will close when the last virtual speaker finishes speaking or five minutes after in-person testimony ends, whichever happens first. Please note that if you are watching via City TV 24 or online, there may be a delay. Please participate via the audio on your phone and mute your TV or computer when it is your turn to speak. If you wish to speak on a particular item, wait for that item to be called and then raise your hand by tapping the raise your hand icon, or if you're a dial-in participant star nine on your cell phone or landline. If you raise your hand during a non-comment period, your hand will be lowered. Thank you. Thank you, Deputy Clerk, for reviewing those instructions. A quorum is now present.
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