San Diego City Council Meeting Summary – June 9, 2026

The San Diego City Council met on June 9, 2026, to discuss and adopt the fiscal year (FY) 2027 budget and related items. The meeting ran from morning until evening, including morning non-agenda public comment, several budget monitoring reports, and an afternoon session focused on the FY2027 budget adoption. Public testimony spanned over two hours, with speakers addressing arts funding, library and recreation center hours, homelessness services, stormwater infrastructure, and the Automated License Plate Reader (ALPR) contract with Flock. The council ultimately adopted a balanced FY2027 budget that restores many services but does not defund the ALPR contract.

Public Comments & Testimony

• Morning Non‑Agenda Comment: Speakers covered a range of topics. Apollo Madrigal (Triton Democrats) urged denial of the new budget, citing cuts to arts, homelessness resources, and youth services while funding mass surveillance. Other speakers addressed trash pickup fees, transparency on lawsuit settlements, mental health, and cannabis education.
• Item 700 (Third Quarter Report): Joy Signata praised the positive fund position but noted the structural deficit remains. Max Schmidt expressed distrust of the council and opposition to taxes. Other callers raised concerns about mental health, budget clarity, and the need for social services.
• Item 701 (CIP): Max Schmidt criticized the presentation as a “one-world government” plan. Joy Signata urged addressing the structural deficit. Hector advocated for a state-of-the-art sewer plant and simplicity in financial explanations.
• Item 702 (Development Impact Fees): Joy Signata asked for an officially adopted plan to return to structural balance. Mary Soriano (La Jolla Town Council) expressed frustration that legacy DIF funds were pooled citywide, reducing local control.
• Item 703 (Parking Meter Revenue): Joy Signata welcomed reinvestment in communities but asked about litigation risks. Blair Beekman suggested reducing parking hours and fees. Hector praised recent paving but criticized studies.
• Item 704 (FY2027 Budget Adoption): Over two hours of testimony from ~100 speakers. Key themes:
  • Arts & Culture: Multiple speakers from IATSE Local 122, Old Globe, and arts organizations urged restoration of arts grants. They thanked Councilmembers Lee and Foster for a public‑private partnership that restored $6 million in arts funding through Measure C funds and matching contributions from the county and Prebys Foundation.
  • Youth & Children: Youth speakers from Youth Will, Mid‑City CAN, and others demanded full funding for the Office of Child and Youth Success (OCYS) and restoration of library and recreation center hours. They argued that investments in youth prevent crime.
  • Surveillance & ALPR: Dozens of speakers from the Trust SD Coalition, PANA, and community groups urged cancellation of the Flock ALPR contract, citing privacy concerns, wrongful arrests, and ties to immigration enforcement. They argued the $2 million could be better spent on community services. Some speakers, including representatives from the police union and neighborhood watch, supported ALPR as a crime‑fighting tool.
  • Public Safety: The Police Officers Association requested restoration of a sex crimes sergeant and graffiti unit supervisor. Fire Chief Logan confirmed aerial operations are fully funded. Several speakers opposed defunding police.
  • Infrastructure & Multimodal: Speakers called for funding the multimodal team, stormwater channel clearance, and the West Valley River Crossing. Residents from Granger Street highlighted failed pavement conditions.
  • Homelessness & Housing: John Brady (Lived Experience Advisors) and others asked to maintain funding for the Neil Good Day Center and shelter beds. Natalie Rashke and others shared personal stories of housing instability.
• Item 705 (Affordable Housing Fund): Joy Signata praised the plan but asked about reallocating projects. Several speakers called for better accountability and more humane shelters.
• Housing Authority Item 1: John Brady and others detailed cases of evictions due to system failures, urging an ombudsman. Natalie Rashke and others called for thinking outside the box on shelter design.

Discussion Items

• Item 700: FY2026 Third Quarter Budget Monitoring Report
  • Presentation: Director of Finance Ben Batalia and staff presented the report. General fund revenues are projected to be $10.5 million (0.5%) under budget; expenditures are $12.2 million (0.6%) under budget, resulting in a projected positive $1.7 million ending balance. Mitigation actions (hiring freeze, discretionary spending suspension) have improved the position. Key risks include $7.4 million in unconfirmed Cal OES reimbursements for 2024 storms.
  • IBA Analysis: Charles Matica noted that the projections are reasonable but flagged risks: Cal OES money may not arrive by August; interest earnings are $11.1 million below budget; overtime in fire and transportation continues to exceed budget.
  • Council Discussion: Councilmembers asked about Cal OES delays, reserve utilization, and the structural deficit. Councilmember Foster made a motion, amended by Council President Pro Tem Lee, to authorize up to $7.4 million from the stability reserve if needed, with the requirement that any drawn reserve be replenished from the Cal OES reimbursement. Motion passed 8–1 (Campbell opposed).
• Item 701: FY2026 CIP Year‑End Budget Monitoring Report
  • Presentation: Jyoti Pantalu and Michael Palayu presented the report, requesting $69.9 million in appropriations, de‑appropriations, and reallocations. Progress was noted on spend‑down of transnet funds, gas tax, and bond proceeds.
  • Council Discussion: Councilmember von Wilpert asked about cost containment and in‑house work. Councilmember Foster inquired about specific projects (Encanto, Paradise Hills Trail). Motion passed unanimously.
• Item 702: FY2025 Development Impact Fee Report
  • Presentation: Samira Rao and Eduardo Hernandez presented the annual report. The transition from community‑specific to citywide DIFs is accelerating (citywide now 65% of revenue). Staff requested approval to appropriate five‑year‑old balances to specific projects (Creekside Park, Hickman Fields).
  • Council Discussion: Councilmember von Wilpert expressed frustration that developers promise amenities but don’t deliver, leaving the city to pay. Councilmember Foster asked about Encanto DIF funds and fire station 51. Motion passed unanimously.
• Item 703: FY2027 Parking Meter Zone Revenue Allocation
  • Presentation: Alex Ubaldo and Naomi Chavez recommended continuing the program with a second $1.8 million allocation from parking meter balances for transportation infrastructure improvements. To date, the program has completed 2,000 streetlight repairs, 3,300 pothole repairs, and 20,000 feet of red curb daylighting.
  • Council Discussion: Councilmember Ila Rivera emphasized community engagement and transparency. Council President Pro Tem Lee expressed concerns that the funds are used primarily for overtime on basic services rather than enhanced community‑identified projects. Motion passed 8–1 (Lee opposed).
• Item 704: FY2027 Budget Adoption
  • IBA Presentation: Charles Matica, Amy Lee, Jillian Andalina, and Jordan Moore presented IBA Report 26‑15. The IBA identified $6.6 million in additional resources ($4.5 million ongoing) and recommended restoring all majority‑supported items, including arts funding via Measure C ($6 million), alternative homelessness reductions, OLSE transfer, CPPS, OCYS coordinator, film program manager, city auditor, and others. The IBA stressed that the budget is not structurally balanced and that the city needs new revenue.
  • First Motion (Foster): Included full library/rec center hour restorations, arts funding, alternative homelessness package, OLSE transfer, stormwater channel clearance ($1.3 million), West Valley River Crossing ($750,000), and defunding the ALPR contract ($2 million) to fund these and other items. Defeated 5–4 (LaCava, Campillo, von Wilpert, Whitburn, Campbell opposed).
  • Second Motion (Foster): Removed the ALPR defunding and full library/rec center restorations, instead funding partial library restorations (North Park, Mira Mesa, Linda Vista) and partial rec center restorations (eight centers). Included stormwater clearance, West Valley River Crossing, ACCF ($450,000), safe storage security ($222,000), lifeguard wellness, and a $1.7 million reserve contribution. Amended by Councilmember Moreno to add graffiti unit supervisor ($196,450) and sex registration unit supervisor ($197,891), funded by $375,000 from police fleet/fuel savings (moving to two‑officer units). Passed unanimously 9–0.
• Item 705: FY2027 Affordable Housing Fund Annual Plan
  • Presentation: Christelle van der Wint and Matt Hagins presented the plan, proposing $39 million in commitments ($22.4 million for prior commitments, $9 million new NOFA, $5.8 million homelessness programs). Motion passed unanimously.
• Housing Authority Item 1: SDHC FY2027 Budget
  • Presentation: Lisa Jones and staff presented the $694 million budget. The Housing Commission has made difficult cuts (58 positions eliminated) and used reserves to balance. An amendment was made to align with the city council’s adopted budget (alternative homelessness reductions and $2.6 million from neighborhood enhancement fees to the Affordable Housing Preservation Fund). Motion passed unanimously.

Key Outcomes

• Item 700: Authorized up to $7.4 million in reserve draw if needed, with required replenishment from Cal OES funds. Motion passed 8–1.
• Item 701: Approved the CIP budget monitoring report and actions. Unanimous.
• Item 702: Approved the DIF annual report and appropriations. Unanimous.
• Item 703: Approved the second $1.8 million parking meter zone allocation for transportation improvements. Passed 8–1.
• Item 704 (FY2027 Budget): Adopted a balanced budget that:
  • Restores $6 million in arts and culture funding via Measure C funds, with matching support from the county and Prebys Foundation.
  • Adopts alternative homelessness program reductions (closure of 37 beds at Lighthouse shelter, reduction of 50 beds at 16th & Newton, use of state grant for family reunification) and provides $42,000 in wind‑down funding for Neil Good Day Center.
  • Transfers the Office of Labor Standards and Enforcement to the City Attorney’s Office (net zero).
  • Restores funding for CPPS ($900,000), OCYS coordinator ($336,000), city auditor ($263,000), film program manager ($215,000), IBA office ($165,000), deputy city clerk ($21,000), ethics commission licensing ($20,000), small business enhancement program ($750,000 one‑time), and Commission on Police Practices complaint system ($200,000 one‑time).
  • Funds partial library restorations (North Park, Mira Mesa, Linda Vista) and partial rec center restorations (eight locations).
  • Provides $1.3 million for stormwater channel clearance (ongoing $841,000; one‑time $1.09 million).
  • Funds West Valley River Crossing ($750,000 from Mission Valley Urban Impact Fee).
  • Adds graffiti unit supervisor and sex registration unit supervisor, funded by $375,000 in police fleet/fuel savings from moving to two‑officer units.
  • Allocates remaining $2.6 million from neighborhood enhancement fees to the Affordable Housing Preservation Fund.
  • Contributes $1.7 million to the General Fund stability reserve.
  • Does not defund the ALPR contract; the council president stated the issue will be revisited later in the year.
• Item 705: Approved the FY2027 Affordable Housing Fund Annual Plan. Unanimous.
• Housing Authority Item 1: Approved the Housing Commission FY2027 budget as amended. Unanimous.