San Diego Budget Review Committee - May 19, 2022: FY2022 Q3 Report & FY2023 May Revise
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San Diego Budget Review Committee Meeting - May 19, 2022
The Budget Review Committee met on May 19, 2022, to consider two major budget items: the Fiscal Year 2022 Third Quarter Budget Monitoring Report and the Mayor's May Revision to the Fiscal Year 2023 Proposed Budget. The committee approved the third quarter report unanimously and received the May revision for discussion, with final budget adoption scheduled for June 13, 2022.
Public Comments & Testimony
- Item 2 – May Revision: Christine Martinez (Arts & Culture San Diego) thanked the council for restoring arts funding to pre-pandemic levels. Sandra Stahl urged keeping funding for an unleaded fuel tank at Montgomery-Gibbs Airport. Francine Maxwell requested a night meeting after the May revise for additional public input. Brenda Garcia Mijan (Climate Action Campaign) called for a comprehensive climate action plan implementation fund. Ben Nichols (San Diego Business Improvement District Alliance) asked to fully fund the small business enhancement program. Sally Small (Chollas Valley CPG) thanked for park safety funding and requested more climate equity funds for Oak Park Library and Emerald Hills Park. Charles Goldberg (Library Foundation SD) asked to convert hourly tutor positions to benefited positions to retain staff. Catherine Douglas expressed general support.
Discussion Items
- Fiscal Year 2022 Third Quarter Budget Monitoring Report: The Department of Finance presented projections based on nine months of actual activity. General fund revenues are projected to exceed budget by $13.5 million, with major revenues $60.3 million over budget (sales tax +$39.4M, TOT +$32.7M, franchise fees +$3.8M) offset by property tax -$12.1M and other major revenues -$3.4M. An additional $49.3 million in ARPA funds were preserved. Expenditures are projected to come in at budget, with overtime overspend in fire rescue ($16.8M) and police ($10.5M) offset by salary savings. Appropriation adjustments totaling about $1 million were requested for IT, Personnel, and Stormwater departments. The Independent Budget Analyst (IBA) noted encouraging revenue news but cautioned about economic volatility and public safety overtime variances. The committee voted unanimously to approve the report.
- May Revision of the Fiscal Year 2023 Proposed Budget: The Department of Finance presented a revised budget increasing the citywide budget by $142 million (2.9%), including $43 million for the general fund (2.3%). Revisions include $24.2 million in additional ARPA use, leaving $52 million available; increased sales tax growth rate from 3.7% to 5.6%; TOT increase of $5.7 million; property tax increase of $6.2 million primarily from Tailgate Park sale. Expenditure additions: $5.8 million for Bridge to Home program, $5.4 million for homeless shelter expansion, $4 million police overtime, conservatorship unit positions, safe camping pilot, behavioral health officer, lifeguard sergeants, fire captain and PPE, park restroom cleaning, graffiti abatement, broadband hotspots (2,000 to 4,000), arts funding restored to pre-pandemic levels, and capital projects including climate equity street lights and park improvements. The IBA noted the structural imbalance remains and reminded that council member budget modification memos are due May 27, with their final report on June 8. Councilmembers expressed appreciation and highlighted specific district priorities; no vote was taken as the item was for discussion only.
Key Outcomes
- Item 1 (Third Quarter Report): Approved unanimously (8-0, with Councilmember Campillo absent).
- Item 2 (May Revision): Received as information. Next steps: Council member budget modification memos due to IBA by May 27, 2022; IBA detailed analysis and final proposed modifications released June 8, 2022; City Council final budget adoption hearing on June 13, 2022.
- The committee also noted the IBA will issue a detailed analysis of both the third quarter report and May revise on June 8, 2022.
Meeting Transcript
Good afternoon. Until further notice, the budget review committee meetings will be conducted pursuant to the provision to the provisions of California Government Code Section 54953 E, 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. This will allow for better meeting management between the two platforms and ensure the council is able to manage and conduct city business. Councilmember Lacava. And with two le too little fanfare, I want to recognize this, I believe, is your last budget review committee. And I didn't want the moment to pass without recognizing. But thank you very much for your leadership this year. And I know you've done it in previous years. You've done a marvelous job. You've really helped the council uh really fulfill its obligation in delivering a balanced budget every June. So thank you. Thank you, sir. I very much appreciate that. Thank you. Thank you, Councilmember. All right. Uh Mr. George, please proceed. Council Council President Elivera, sorry about that. I missed you. All good. Um I just just to kind of um build upon what Councilman Lacaba said, um, and to embarrass you more. Um why not? Um, just I did want to say thank you again. Um, you know, uh I think we have pretty different philosophies in terms of um you know, political ideology, but I the idea when we first um talked about the way the budget review committee we run and uh kind of governance in general is about running a fair process and um this despite the ideological differences, I think that I'm super proud, as I've told you before, uh, that you've been the chair of this, and and there's been no doubt in my mind that it's been a very fair process. Um so I just want to uh thank you and appreciate you for that. Umgomery step. Councilmember Montgomery Step. I just hope we give Surrells to you in your final days. That's all if the council president decides to agenda more than one. I'm happy to take take my lumps. So appreciate that. Thank you very much. Thank you, everybody. Mr. George. We have oh, Councilman Momulbert, sorry. We're looking at the screen. No, it's okay. Yeah, um, I just want to thank you as well for for guiding you know five new people through a budget review process. There's five of us, and that was a lot. So thank you for for all you're doing, and I I look forward to the roast. So do I. Bring it. All right, not seen. Okay. Mr.
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