San Diego Budget Review Committee Meeting - May 2, 2024
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San Diego Budget Review Committee Meeting - May 2, 2024
The Budget Review Committee of the San Diego City Council met on May 2, 2024, to review proposed budgets for the External Services Branch (Development Services, City Planning, Sustainability & Mobility), Economic Development Department, Environmental Services, General Services, and the Office of Race and Equity. The meeting began at 10:00 AM and included presentations from department directors, questions from council members, and public testimony. No formal votes were taken, as this was an informational session.
Public Comments & Testimony
- Anne Feggy (urban forester) urged DSD to preserve trees and called for the city to uphold climate equity commitments, noting that the Climate Equity Fund should not be cut.
- Janet Rogers (downtown resident) advocated for noise cameras to enforce muffler regulations, and opposed the proposed shared mobility device budget, suggesting those funds be reallocated.
- Lori Saldania criticized the city's failure to negotiate affordable housing at Tailgate Park and warned that cutting the Climate Equity Fund harms communities of concern.
- Joyce Yata (District 3) praised DSD's transparency and urged stronger partnerships with the state for planning grants.
- Sally (community advocate) expressed concern that affordable housing projects are concentrated in Districts 4, 8, and 9, increasing poverty concentration, and called for balanced development.
- Blair Beekman supported the city's efforts to reduce reliance on SDG&E and advocated for mixed-income housing.
- Laura Ann Fernia and Gilberto Vera (Legal Aid Society) urged funding for the Eviction Prevention Program and the eviction notice registry, highlighting their effectiveness in preventing homelessness.
- Kathleen Lippett opposed rent control policies, arguing they lead to housing deterioration.
- Layla Aziz criticized the defunding of the Youth Care and Development Program and the cannabis social equity program, accusing the city of mismanagement.
- Peggy Walker supported cutting the cannabis social equity program, citing harms to youth.
- Raphael Crawford and Armand King (social equity advocates) argued that the cannabis social equity program is essential for addressing historical injustices and urged the city to fund it.
- Ricky and Malik King called for resources for youth drop-in centers in their communities.
Discussion Items
Subitem F: External Services Branch (Development Services, City Planning, Sustainability & Mobility)
- Development Services (DSD): Director Elise Lowe reported a vacancy rate drop from 20-30% to 10.3% (6.3% net). The department reduced permit review times for 100% affordable housing to an average of 9 days, and 68% of permits are issued within two weeks. The proposed budget adds 5 positions for the Complete Communities program and a mechanical engineer. The IBA noted a $4.5M transfer from the Civil Penalty Fund to the general fund, and suggested an additional $1.2M could be transferred. The $5.2M relocation to new office space (downtown and Mission Valley) is unfunded in the proposed budget. Council members praised the reduction in vacancies and faster permit processing, but raised concerns about the relocation costs and the lost revenue from not implementing the fee study.
- City Planning: Director Heidi Vonblum reported a 5% vacancy rate (down from 22% in 2022). The department is transferring 19 FTEs from the Facilities Financing Fund to the general fund for operational efficiency, with a planned $346K revenue adjustment in the May Revise. The proposed budget includes 16 management interns. Council members discussed the need for affordable housing in high-resource areas, the impact of state budget cuts on REAP 2.0 grants, and the importance of the Environmental Justice Element. Councilmember Foster expressed concern about concentrated poverty in District 4, and Councilmember Whitburn noted that increased housing supply in District 3 is moderating rents.
- Sustainability & Mobility (S&M): Interim Director Heather Werner presented a budget with one new FTE for the Zero Emission Vehicle (ZEV) program, and reductions in contracts for scooter enforcement and technical support for completed projects. The Climate Equity Fund is proposed to receive only $1.5M (from SDG&E), with no additional city allocation. The Energy Independence Fund is swept to the general fund, pausing the public power feasibility study. The IBA noted a potential $188M gap in CAP funding, mostly for stormwater. Council members expressed concern about the cuts to the Climate Equity Fund and the impact on communities of concern, especially in light of the January floods. Councilmember Whitburn strongly opposed any return of shared mobility devices, citing safety issues.
Subitem G: Economic Development Department
- Director Christina Bibler highlighted the consolidation of the former Redevelopment Agency and Airport Management into one department. Vacancy rate reduced from 38% to 8% (planned). The budget includes $690K for a business cooperation rebate program, and a reduction of $400K for the eviction notice registry. The IBA noted that the eviction notice registry is on hold pending a trust ordinance exemption, and that the Small Business Enhancement Program (SBEP) is underfunded by $1.2M. Council members discussed the importance of SBEP, the need for transparency in real estate transactions (e.g., Tailgate Park, 101 Ash), and the flood recovery support for small businesses. Council President Elo Rivera criticized the lack of implementation of council-directed programs (e.g., eviction registry, Tailgate Park proceeds to Bridge to Home). The IBA also noted that the youth drop-in center program (1-year pilot) was eliminated as a budget mitigation, with no written notice to council as required by municipal code.
Subitem H: Environmental Services & General Services
- Environmental Services (ESD): Director Renee Robertson presented the budget including creation of a new Solid Waste Management Fund (for Measure B fee implementation), $1M increase for curbside processing, and $379K for RFID readers on packers. The department is expanding household hazardous waste operations. The IBA noted that the new fund will offset $6.1M in startup costs, and that the tipping fee discount for the general fund is a $11.4M revenue reduction in the Refuse Disposal Fund. Council members praised the department's flood response and the organics collection program.
- General Services: Director Meshira Little reported that Fleet Operations reduced its fleet electrification to 5% (177 EVs), and the department is requesting $6.4M for vehicle replacement. The proposed budget reduces supplies and services by $538K, which may increase deferred maintenance. The IBA noted that condition assessments for city facilities are overdue (last done 2014-2016). Council members discussed the need for a veteran hiring program and the impact of deferred maintenance on critical facilities like Choyas.
Subitem I: Office of Race and Equity
- Chief Race and Equity Officer Kim Desmond presented the department's mission and equity model. The proposed budget eliminates the Community Equity Fund ($3M), the cannabis social equity program (3 positions and $600K one-time), and the youth care and development program ($1M, one-time). The IBA noted that these programs were council priorities but had not been implemented. Council members expressed frustration with the lack of implementation and communication, and questioned the department's authority to enforce equity across other departments. Councilmember Foster highlighted the need for accountability and data-driven tracking of equity KPIs. Councilmember Moreno urged the department to lean into explaining the inequity of the proposed budget to the mayor.
Key Outcomes
- No formal votes were taken; the meeting was informational.
- Council members expressed strong support for restoring funding for the Small Business Enhancement Program, the eviction notice registry, the Community Equity Fund, the cannabis social equity program, and the youth drop-in center program.
- The IBA recommended that the council consider additional transfers from the Civil Penalty Fund to support code enforcement.
- The mayor's office indicated that the May Revise will include adjustments for the Eviction Prevention Program (using ERA2 funds) and cost estimates for DSD relocation.
- Council members directed staff to provide more information on the impact of budget cuts on climate equity and community programs.
- The meeting recessed at approximately 2:00 PM, with the next session scheduled for May 3, 2024.
Meeting Transcript
Good morning, and welcome to the next session of the budget review committee meeting of May second, twenty twenty-four. Our committee lays on Natalie Kessler will go over instructions for today's meeting. Department budgets will be heard in the order of the agenda, subject to the chair's discretion. Throughout the continuous budget review committee meeting, public comment will be taken during each sub-item. This information and instruction is also available on the budget review committee agenda on the city's webpage. 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 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 occurs first. This will allow for better meeting management between the two platforms and ensure the council is able to manage and conduct city business. For subitems containing more than one department being discussed, members of the public will have one minute per department listed with a maximum of three minutes total. We appreciate the public's cooperation. Chair. I'll now call the budget uh review committee session of Thursday, May 2nd, 2024 to order. Natalie, please call the roll. Council President Pro Tem Lakava. Present. Committee member Campbell here. Committee member Whitburn. Here. Committee member Foster. Here. Committee member Von Wilbert. Present. Committee member Kempio. Committee member Moreno. Present. Vice Chair President Elo Rivera. Present. And our Chair, Committee Member Lee. Here. Also attending the meeting today is Rishin Chen from the Independent Budget Analyst Office. Chief Deputy City Attorney Corinne Newfer from the City Attorney's Office. Chief Financial Officer Matt Besby, Department of Finance Director Rolando Charbell, and Policy Advisor for Mayor Todd Gloria, Chris Ackerman of Eli. If you're 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 lecture 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 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. Webinar ID is 161 7059651 pound. This information is also available on the agenda and will appear on the screen during the public comment period for each agenda item. Please note that if you are watching via City TB 24 or online, there may be a delay, so 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 or sub item, wait for that sub-item to be called and then raise your hand to speak by tapping the raise your hand icon, or if you're a call-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. Chair. Thank you, Natalie, for reviewing those instructions for the benefit of the public. A quorum is now present. We will now move to committee members, mayor roll staff, city attorney, and independent budget analyst comments. Hearing none, we will now take up our information agenda. As a reminder, these are informational items only during our budget review committee hearings, so no motions are required. As Natalie mentioned, public comment will be heard after each sub-item.
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