San Diego City Council Meeting – April 20, 2026: FY27 Budget Presentation & Affordable Housing Loan

This meeting of the San Diego City Council, convened on Monday, April 20, 2026, began with closed session matters and public testimony, followed by a vote on an affordable housing loan agreement and a comprehensive presentation of the Fiscal Year 2027 draft budget. Over 160 members of the public testified in person and online, overwhelmingly opposing proposed cuts to arts, youth services, libraries, and parks. Council members expressed deep concerns about the budget's impact on equity and essential services, but acknowledged the necessity of cuts to address a $118 million structural deficit.

Consent Calendar

• No consent calendar items were on the agenda.

Public Comments & Testimony

• Closed Session Items (CS2, CS3, CS4): Blair Beekman spoke on CS2 (delinquent parking tickets), urging equity in enforcement; on CS3 (Prop 218 violations on tiered water rates), advocating for low-income assistance; and on CS4 (Midway Rising project / sports arena), calling for clearer explanations of sea-level rise and legal issues. Mandy Havlick addressed the sports arena and later the Housing Authority closed session, arguing that the state should not legislate away the Supreme Court's requirement for traffic and environmental analysis of the Midway project. A speaker (identified as "the original") criticized the city's litigation management, transparency, and the Midway Rising project, alleging backroom deals.
• Housing Authority Closed Session: Multiple speakers commented on the performance evaluation of the San Diego Housing Commission CEO. One speaker reported an 8.8% rent increase at Mount Etna affordable housing, arguing against rewarding leadership while residents struggle. Another speaker praised the current leadership for navigating federal challenges. A third speaker (Blair Beekman) urged continued community dialogue on environmental concerns.
• Item 201 (Affordable Housing Loan): Three speakers testified. Blair Beekman supported the project but emphasized the need for truly affordable housing. Andrea Ebbing raised concerns about the developer's nonprofit status, suggesting further investigation. A third speaker ("the original") questioned the affordability of the units, alleging that NGOs and developers benefit while residents face rising costs.
• Item 200 (FY27 Draft Budget): Over 160 speakers testified in person and 26 online, plus 270 e-comments in opposition. The vast majority opposed cuts to arts and culture (especially the proposed elimination of the $11.8 million Penny for the Arts), the Office of Child and Youth Success (OCYS), library and recreation center hours, and parks maintenance. Many called for redirecting funds from police and surveillance (Flock ALPR) to community services. Speakers included representatives from Chicano Federation, Youth Will, Partnership for the Advancement of New Americans, Mid-City CAN, San Diego Opera, Old Globe, and other arts organizations. Several youth and young adults shared personal stories of how arts and library programs saved their lives. A few speakers supported the budget's public safety investments but acknowledged the difficulty of cuts. The Independent Budget Analyst (Charles Monica) noted that the city's deficit is structural and that cuts are unavoidable, but stressed that even cutting entire departments wouldn't fix the infrastructure backlog.
• Non-Agenda Public Comment: Speakers addressed mental health resources for youth, fire prevention staff, parking ticketing practices, police accountability, the Flock surveillance contract, cannabis equity program, SeaWorld bird rescue related to climate change, the seed program, and the Barrio Logan community plan.

Discussion Items

• Item 201 – 40th and Alpha Apartments Affordable Housing Loan: Staff presented a $4.5 million loan to Community Housing Works for 91 affordable units (69 one-bedroom, 22 two-bedroom) and a child care center in the Southcrest neighborhood. The IBA noted a $7 million cost increase since December 2024 and cautioned about unsecured soft funding sources. Councilmember Moreno moved approval, seconded by Councilmember Campillo, emphasizing the project's importance for working families. Councilmember Ila Rivera highlighted the community's need for investment after the 2024 floods. The motion passed 8-0 (Councilmember Von Wilpert absent).
• Item 200 – FY2027 Draft Budget Presentation:
  • Mayor Gloria presented the balanced draft budget, closing a $118 million deficit (later revised to $146 million after mandates) through $76.1 million in expenditure reductions, $26.2 million in labor concessions, and $43.9 million in additional revenue. Key proposals: eliminating 198 general fund positions (48 management), reducing library/rec center hours, pausing arts grants, and eliminating the Office of Child and Youth Success. Investments: $97.1 million for homelessness services, $89.1 million for street repair (345 miles), $60 million for safety improvements (Fatal 15 intersections), and $52.5 million for stormwater infrastructure.
  • CFO Rolando Chavel detailed revenue projections (property tax growth at 4.2%, sales tax at 1.9%, TOT at 1.5%) and confirmed the budget avoids fire station brownouts and police station closures.
  • IBA Charles Monica emphasized that the deficit is structural and that deep cuts are required; he noted that infrastructure backlog ($7.8 billion) cannot be fixed without new revenue. He also clarified that arts funding traditionally comes from TOT's Special Promotional Programs, not the general fund.
  • Councilmembers each commented. Councilmember Foster highlighted equity concerns, questioning the police budget increase and calling for retention of youth programs. Councilmember Ila Rivera asked about the administration's vision and whether state/philanthropic opportunities were pursued. Councilmember Campillo argued the budget is "legally balanced but not optimally structured," expressing worry about cuts to both immediate services (police, fire) and future investments (arts, youth). Councilmember Moreno voted against last year's budget due to reliance on fees and deferred maintenance; she criticized the disproportionate impact on communities of color and urged preserving arts and library services. Councilmember Von Wilpert stressed the importance of police/fire response times and shared a personal experience of a ride-along stabbing victim; she committed to restoring arts funding. Councilmember Whitburn noted many more opportunities for public input and announced a District 3 budget town hall. Council President Pro Tem Lee questioned why specific operational cuts (library hours) were not detailed, and criticized the elimination of arts funding without transparent analysis of Special Promotional Programs.
  • Council President LaCava stressed that the budget process would be collaborative, with cuts (not new revenue) as the primary tool. He warned against external threats that could worsen the deficit.

Key Outcomes

• Item 201: Approved 8-0 (Councilmember Von Wilpert absent). The $4.5 million loan for the 40th and Alpha Apartments was authorized.
• Item 200: Informational presentation only; no vote taken. The budget will be further reviewed in Budget Review Committee hearings starting May 4, 2026, with a May revision due May 13, and final adoption scheduled for June 9.
• Closed Session Settlement: The City Council voted 6-1 (Councilmember Foster dissenting; Councilmembers Moreno and Von Wilpert absent) to accept a mediator's $40 million settlement proposal in Daniel Patz v. City of San Diego (San Diego Superior Court Case No. 37-2015-000-23413-CU-MC-CTL).
• Housing Authority Closed Session: No action was reported out.
• Next Steps: The council will hold budget review hearings (including two evening sessions on May 4 and May 18) and will release additional details on proposed library and recreation center hour reductions.