Budget Review Committee Meeting Summary - May 9, 2023
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Budget Review Committee Meeting Summary - May 9, 2023
The San Diego Budget Review Committee met on May 9, 2023, to review the proposed fiscal year 2024 budgets for several city departments and agencies. The meeting included informational presentations from the Homelessness Strategies and Solutions Department (HSSD), the San Diego Housing Commission, the San Diego Convention Center Corporation, the San Diego City Employees Retirement System (SDCERS), and several other offices. Public comments were heard on each item. No formal votes were taken, as these were informational items.
Homelessness Strategies and Solutions (HSSD)
- Presentation: Director Sarah Jarman presented the FY2024 proposed budget of $43.9 million in general fund, an increase of $19 million from FY23. The budget includes $16.6 million for existing shelter programs and leases, $1.8 million for safe parking (including Rose Canyon and new locations), $2.2 million for housing instability prevention, $1 million for winter shelters, $500,000 for day center operations, and $5 million for new shelter bed capacity. The department added 1 FTE (to 16).
- IBA Comments: Amy Lee noted the transition from one-time grants to ongoing general fund, funded by $31 million from TOT. She highlighted the need for outcome data and the pending comprehensive shelter strategy.
- Public Comments: Speakers from Balboa Park Cultural Partnership, San Diego Zoo, Forever Balboa Park, and Downtown San Diego Partnership expressed support for safe camping sites and the budget. Several residents urged continued funding for eviction prevention and criticized the use of opioid settlement funds for existing services.
- Council Discussion: Councilmembers expressed support for safe sleeping sites, LGBTQ youth shelter, and the day center. Concerns were raised about the lack of a detailed plan for the $5 million shelter expansion, the use of opioid funds, and the need for more prevention and housing. Councilmember Moreno pressed for specifics on the shelter strategy timeline and questioned the effectiveness of outreach.
San Diego Housing Commission
- Presentation: CFO Zuke Dell presented a $595 million proposed budget, a $131,000 increase over FY23. The budget supports 17,000 households with housing vouchers, $29 million for affordable housing gap financing, $14 million for property acquisition, and $4.5 million for first-time homebuyers. It includes 29 new FTEs, leading to 395 total.
- IBA Comments: Amy Lee noted the increase in funding for the housing instability prevention program (HIP), but cautioned that over 60% of the $2.5 million goes to personnel and operations, not direct assistance. She also raised concerns about the community action plan update and the need for better outcome tracking.
- Public Comments: Two callers spoke: one emphasized collaboration between agencies, and another supported mixed-income housing.
- Council Discussion: Councilmembers asked about exits from permanent supportive housing, the status of community action plan goals (such as medical respite beds and rapid rehousing), and the implementation of the tenant protection ordinance. Councilmember Moreno requested data on evictions from PSH units. Councilmember Elo Rivera praised the improved communication and requested continued funding for eviction prevention.
San Diego Convention Center Corporation
- Presentation: CEO Rip Rippetoe and CFO Marty Maddox presented the FY24 budget, projecting a $6.4 million net operating loss. They requested $5 million in operational subsidy and $2.7 million for the sales and marketing pass-through to the Tourism Authority. The building has $292 million in capital needs over 10 years, with $13.2 million budgeted for FY24 (kitchen renovation, air walls, and roof design).
- IBA Comments: Nikki Bennett summarized the total city support of $21.1 million, including debt service. She noted the piecemeal funding approach and the need for a long-term funding plan.
- Public Comments: One caller asked about the city's active assailant insurance policy; another supported positive planning for 2024-25.
- Council Discussion: Councilmembers thanked the team for the economic impact and asked about capital projects, electrification, and Community Power. Councilmember Moreno requested a facility condition assessment and the 20-year plan.
SDCERS (San Diego City Employees Retirement System)
- Presentation: CEO Greg Rodemaker presented the FY24 administrative budget of $17.1 million, a 2.8% increase. The budget includes three new staff, IT contract increases, and a focus on investment and governance. The fund has a 20-year net return of 8.2% and a 5-year return of 6.2%.
- IBA Comments: Lisa Byrne noted the FY22 investment loss of 1.7% and legal fees of $25.9 million related to a lawsuit, which increased investment expenses to 0.72% of assets.
- Public Comments: None.
- Council Discussion: Councilmember Von Wilpert asked about the experience study, which is scheduled for September. Councilmember LaCava asked about fossil fuel investments and requested more disclosure.
Commission on Police Practices
- Presentation: Interim Executive Director Charmaine Mosley presented the budget of $2.2 million, a decrease from FY23. The office has 3 FTEs (down from 4) and is recruiting for deputy executive director, supervising investigator, and senior management analyst. The commission conducted 21 meetings and released stats to the open data portal.
- IBA Comments: Bakou Patel noted the budget for outside legal services is only $25,000, which would be depleted in three months at the current spending rate.
- Public Comments: One caller expressed support and asked about community trust; another criticized the lack of enforcement power.
- Council Discussion: Councilmembers asked about the timeline for hiring a general counsel (pushed to January 2024 per community feedback) and the next steps for the commission. They supported allocating funding for outside counsel if needed.
Department of Government Affairs
- Presentation: Director Adrian Grand presented the FY24 budget with no significant changes. The department secured $88.7 million in state funding, $300 million for the Mid-Coast corridor, and $24 million for the I-805 interchange. They also advocate for state and federal funding, including HAP 5.
- IBA Comments: None additional.
- Public Comments: Three callers: one praised the department, one criticized climate action, and one asked for support of AB 1207 (Cannabis Candy Child Protection Act).
- Council Discussion: Councilmembers thanked the department for its work and requested continued focus on grants for infrastructure, climate, and homelessness. Councilmember Moreno suggested exploring having a staffer in Sacramento.
Personnel Department
- Presentation: Director Doug Edwards presented the budget with no programmatic additions. The department requested one program coordinator in the May revise. They highlighted increased hiring efforts: 41 career fairs, 27% increase in applications, and 172 job offers from a career fair.
- IBA Comments: Lisa Byrne noted the vacancy rate of 5% and the successful implementation of the recruiting and outstation programs. She recommended expanding the outstation program.
- Public Comments: One caller emphasized the need for targeted hiring for positions with high retirement; another appreciated the marketing efforts.
- Council Discussion: Councilmembers discussed the hiring process, the 60-day average for certified lists, and the possibility of expanding the outstation program. Councilmember Campbell criticized the archaic list system and asked for modernization.
Ethics Commission
- Presentation: Executive Director Sharon Spivak presented the budget with no significant changes. The commission is fully staffed with six people, and they focus on training, advice, and enforcement. They audited the 2020 mayoral campaign (largest in history) and provided 400+ advice requests.
- IBA Comments: None.
- Public Comments: One caller asked for more transparency in naming violators; another criticized the lack of accountability for council members.
- Council Discussion: Councilmembers thanked the commission for its work and noted the value of its education programs.
Office of the City Clerk
- Presentation: Interim City Clerk Deanna Fuentes presented the budget with a $218,000 increase for software enhancements and passport revenue. The office has 50.32 FTEs and no new positions. They are implementing a new records management system and expanding language access.
- IBA Comments: Jillian Andalina highlighted the $70,000 for software enhancements, including a municipal code hosting platform that could speed up permit review.
- Public Comments: Three callers praised the office's customer service and asked for more training opportunities.
- Council Discussion: Councilmembers supported the technology upgrades and acknowledged the office's high-quality service.
City Council Budgets
- Presentation: Director of Council Administration Mary Ann Wallace presented the budget for the nine council offices and council administration. Each office's budget increases by $93,000 for personnel costs, with no changes in discretionary funds. The CPPS funding allocation is being reviewed, with a proposal to equalize allocations.
- IBA Comments: Charles Modica noted the historical CPPS allocations and the pending council policy changes.
- Public Comments: Three callers: one praised the staff, another suggested internship programs, and a third urged council to listen to all constituents.
- Council Discussion: Councilmembers thanked the staff and raised questions about CPPS allocations and pay raises for council staff. They supported the 5% increase for unclassified workers.
Independent Budget Analyst (IBA)
- Presentation: Charles Modica presented the IBA's budget, which has no significant adjustments. The office provides objective analysis and education, including reports on housing affordability, opioid settlement, and climate action. They also developed a new council policy on climate action prioritization.
- Public Comments: Two callers praised the IBA's work and professionalism.
- Council Discussion: Councilmembers expressed gratitude for the IBA's support and emphasized the importance of adequate compensation for IBA staff.
Key Outcomes
- No votes were taken; all items were informational.
- The committee will reconvene on May 18, 2023, to review the May revise and continue budget discussions.
- The COO Eric Dargan closed by emphasizing the need to prioritize funding and noted that all requested additions total $320 million, which is not available. He committed to exploring ways to bring contracting in-house and improve hiring.
Public Comments (Non-Agenda)
- Several callers raised concerns about the length of public comment periods, social media etiquette, and the need for more community engagement.
- One caller praised the library's new exhibit and the mayor's team.
This summary reflects the discussions and information presented during the May 9, 2023 Budget Review Committee meeting.
Meeting Transcript
Good morning, everyone, and welcome to the last budget review committee. Uh budget review committee of May 9th, 2023. Our committee's manager, Ty Birch will go over instructions for today's meeting. Thank you very much, Council President Pro Tem Montgomery Step. While the public is allowed to attend the meetings in person, this meeting is being televised and live streamed on the city's website, and council administration 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 speaking 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 concludes, whichever occurs first. This will allow for better meaning management between the two platforms and ensure that the committee is able to manage and conduct city business. We appreciate the public's cooperation. Chair. Thank you. I will now call the budget review committee meeting of Tuesday, May 9th, 2023 to order. Tyler, please call the roll. Committee member Lakava Present. Committee Member Campbell here. Committee member Whitburn. Committee member Von Wilpert. Committee Member here. Committee Member Moreno. Present. Vice Chair Council President Elo Rivera. Present. And our chair, Council President Pro Tem Montgomery Step. Here. Also attending the meeting today, Charles Monica and Amy Lee from the Independent Budget Analyst Office. Heather Ferber from the City Attorney's Office. Tyler, please proceed with public comment instructions. Thank you very much, Chair. 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 left turn at the front of the room. Please do so in a timely manner to ensure proper main 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 on the city's webpage. If you need to participate by phone, you may dial 1669-2545252, input webinar ID 160564-5569 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 previously, members of the public who wish to buy virtual testimony must enter the virtual speaking 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 concludes, whichever occurs first. Please note that if you're watching on CTV 24 online, there may be a delay, so please participate via the audio on your phone and mute your TV or computer when it's your turn to speak. If you wish to speak on a particular item, please wait for that item to be called and then raise your hand to speak by selecting the raise your hand icon, or if you're a call-in participant, pressing 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 so much, Tyler, for reviewing those instructions for the benefit of the public. A quorum is now present. We will move to committee member, mayoral staff, city attorney, and independent budget analyst comments. Hearing none, we will move on to our agenda. We will now take up our information agenda. Just a reminder, these are informational items only, so no motion is required. Tyler, please introduce item number one. Thank you, Chair. Item one homelessness strategies and solutions. If you're watching on C T V or the live stream online and would like to call into the meeting and speak, please call 1669-2545252 when prompted input webinar ID 160564-5569 pound. You may raise your hand to speak at this time by selecting the raise your hand button or pressing star nine.
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