San Diego City Council Meeting - February 23, 2026

This meeting of the San Diego City Council covered three major segments: a closed session, an afternoon session reviewing the fiscal year 2026 mid-year budget monitoring report and convention center capital projects, and an evening public hearing on the development of the fiscal year 2027 budget. Key actions included approval of the mid-year report adjustments, authorization of $21.4 million for convention center modernization, and designation of those projects under the city's project labor agreement. The council also received public input on the upcoming FY27 budget, which faces a projected deficit of $100–$120 million.

Public Comments & Testimony

• Closed Session Comments: Speakers addressed concerns about litigation (CS1–CS7), the 7th and Market redevelopment (CS5), and general city malfeasance. One speaker urged honoring the site's African American history.
• Item 200 – Mid-Year Budget: Multiple speakers praised the police department's overtime reduction and expressed concerns about Balboa Park parking revenue accuracy. One speaker questioned the city's transparency and urged clear communication on budget narratives.
• Item 201 – Convention Center Modernization: The San Diego County Lodging Association cautioned that Measure C funds were intended for new homelessness programs and convention center expansion, not deferred maintenance, but acknowledged the need for repairs. The Building Trades Council supported the item.
• Item 202 – PLA Designation: A speaker urged oversight of the PLA to ensure underrepresented groups are included. Others supported the prevailing wage requirements.
• Non-Agenda Public Comment: Multiple speakers addressed cannabis health risks (citing a JAMA study linking adolescent use to doubled risk of psychotic and bipolar disorders), urged the city to limit cannabis advertising, and called for reassessment of marijuana policies. Others raised concerns about the Torrey Pines Glider Port lease, city delegation of authority to for-profit entities, and the need for insurance reform.
• FY27 Budget Hearing (S400): Many speakers urged prioritizing libraries, parks, and public transportation (including Vision Zero and the 215 bus). Several called for reducing police funding and canceling the Flock contract due to data sharing with ICE. Others advocated for zero-based budgeting, outsourcing, and consolidating middle management. A few speakers emphasized the need to protect immigrant communities and invest in stormwater infrastructure.

Discussion Items

• Item 200 – Fiscal Year 2026 Mid-Year Budget Monitoring Report: The Department of Finance presented a projected general fund deficit of $16.8 million, later revised to $1.8 million after positive updates (insurance proceeds, SDG&E franchise fees, sales tax). The initial deficit was driven by a $7.2 million shortfall in major revenues (especially Transient Occupancy Tax) and a $3.2 million increase in expenditures (primarily overtime in fire, police, and transportation). Balboa Park parking revenue projections fell from $12.5 million (budget) to $2.5 million after policy changes. The Independent Budget Analyst (IBA) noted the deficit could require tapping the general fund reserve ($207 million, already below policy target). The IBA also highlighted a $6.1 million departmental revenue shortfall and recommended better alignment of expenditures with revenues in transportation. The police department reported a $6.5 million year-over-year overtime reduction and on-budget Neighborhood Policing Division, citing a new monitoring process. The IBA also noted that the projected FY27 deficit had grown from $88.8 million to $100–$120 million.
• Item 201 – Convention Center Modernization Projects: Staff requested approval of a $21.4 million FY26 budget from Measure C TOT revenues for critical capital improvements (roof replacement, central plant overhaul, and other life-safety systems) to address deferred maintenance. The facility condition index increased from 0.023 (2022) to 0.035 (2026). The council authorized the CFO to create a new CIP line and transfer funds.
• Item 202 – Third Addendum to Convention Center Management Agreement & PLA Designation: The council approved a third addendum to the management agreement with the San Diego Convention Center Corporation, clarifying prevailing wage requirements, reimbursement processes, and indemnification. It also designated the convention center capital projects as covered under the city's existing project labor agreement (PLA), with monitoring by the city's PLA compliance office.
• Evening Session – FY27 Budget Hearing (S400): Council President LaCava and IBA Director Modica opened the hearing, noting the city's structural deficit and the need for trade-offs. Councilmember Foster, chair of the Budget Committee, stressed that cuts must be strategic, proportional, and preserve core services (libraries, parks, infrastructure). The public provided extensive input (see above).

Key Outcomes

• Item 200: Approved staff recommendation (motion by Councilmember Foster, second by President Pro Tem Lee) to adopt the mid-year report and appropriation adjustments. Vote: 7-0 (Councilmembers Campillo and Von Wilpert absent).
• Item 201: Approved staff recommendation (motion by Councilmember Whitburn, second by Councilmember Campbell) to create the annual allocation and approve the FY26 budget for convention center modernization. Vote: 6-0 (Councilmembers Moreno, Campillo, and Von Wilpert absent).
• Item 202: Approved staff recommendation (motion by Councilmember Whitburn, second by Councilmember Campbell) to authorize the addendum and designate projects under the PLA. Vote: 7-0 (Councilmembers Campillo and Von Wilpert absent).
• Closed Session: The council voted 6-0 to authorize initiation of litigation (CS7). Details will be disclosed when litigation is formally commenced.
• FY27 Budget Process: The evening hearing was informational; next public hearings are scheduled for March 10, May 4, and May 18, 2026. The mayor's proposed budget will be released April 15.