BOS Budget and Appropriations Committee Regular Meeting - June 5, 2024
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BOS Budget and Appropriations Committee Regular Meeting - June 5, 2024
The Budget and Appropriations Committee, chaired by Supervisor Connie Chan and joined by Supervisors Mirna Malgar, Shamann Walton, Vice Chair Rafael Mandelman, and President Aaron Peskin, convened on June 5, 2024, to consider two items: a bond issuance for the San Francisco Public Utilities Commission (SFPUC) and the Controller's Nine-Month Budget Status Report for FY2023-2024. Both items were advanced unanimously with no public testimony.
Consent Calendar
- No items were designated as consent calendar in the agenda.
Public Comments & Testimony
- No members of the public provided testimony on either item.
Discussion Items
Item 1: SFPUC Water Revenue Bond Issuance (File 240455)
- An ordinance authorizing the issuance of tax-exempt or taxable water revenue bonds and other indebtedness by the SFPUC in an aggregate principal amount not to exceed $1,040,007,350 to finance capital water and Hetch Hetchy projects. The item had been continued from the previous week due to an amendment adding $5 million for emergency repairs at Pink Lake and Pine Lake. No further discussion or questions were raised. The committee voted to forward the ordinance to the full Board of Supervisors with a positive recommendation (5-0).
Item 2: Hearing - Controller's Nine-Month Budget Status Report (File 240485)
- Michelle Aller Smith from the Controller's Office presented the report, which covered the current fiscal year (FY2023-2024) general fund. Key findings included a net revenue shortfall of $104 million citywide (driven by weakness in business, sales, hotel, and transfer tax revenues, and lower FEMA reimbursements), offset by a $198 million operating surplus across departments (largely from mid-year cuts and savings). The Department of Public Health showed a $52 million shortfall at Laguna Honda Hospital due to low patient census, offset by higher-than-budgeted revenue at Zuckerberg San Francisco General Hospital. Reserves: the fiscal cliff reserve had a balance of $130 million, and the Free City College reserve ($6.9 million) was fully spent in the current year. The mayor's proposed budget (not yet reviewed in this report) may use these reserves differently. The committee asked clarifying questions about the Free City College reserve, the public health revenue management reserve, and the status of FEMA reimbursements (still ongoing). The hearing was heard and filed without objection (5-0).
Key Outcomes
- Item 1 (SFPUC Bond Issuance): Motion to forward to the full Board of Supervisors with a positive recommendation passed unanimously (5 ayes: Mandelman, Melgar, Walton, Peskin, Chan).
- Item 2 (Budget Status Report): Motion to hear and file the report passed unanimously (5 ayes).
- No other items were considered; the meeting adjourned.
Meeting Transcript
Good afternoon. The meeting will come to order. Welcome to the June 5th, 2024 meeting of the budget and appropriation committee. I'm Supervisor Connie Chan, Chair of the Committee. I'm joined by Supervisors Mirna Malgar and Shaman Walton, and hopefully shortly by Vice Chair Raphael Mendelman and President Aaron Peskin. Our clerk is Brent Halipa. I would like to thank um Jamie uh Everchery for from SFGov TV for broadcasting um for broadcasting this meeting. Mr. Clark, do you have any announcement? Thank you, Madam Chair. Just a friendly reminder to those in attendance to please make sure to silence all cell phones and electronic devices to prevent interruptions to our proceedings. Should you have any documents to be included as part of the file that should be submitted to myself, the clerk. When your item of interest comes up in public comment is called, please line up to speak on the west side of the chamber to your right, my left along those curtains. And while not necessary uh to provide public comment, we do invite you to fill out a comment card and leave them on the trailer uh by the television to your left by the doors if you wish to be accurately recorded for the minutes. Alternatively, you may submit public comment in writing in either of the following ways. Email them to myself, the budget and appropriations committee clerk at B R E N T dot J A L I P A Hat S F G O V dot O R G. If you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file. You may also send your written comments via U.S. Postal Service to our office in City Hall. Hat one Dr. Carlton be good look, room 244. San Francisco, California, 94102. And finally, Madam Chair, items acted upon today are expected to appear on the Board of Supervisors agenda of June 11th, unless otherwise stated. Madam Chair. Thank you. And uh let's go to um item number one. Yes, item number one. Uh is an ordinance authorizing the issuance uh and sale of tax exempt or taxable water revenue bonds and other forms of indebtedness by the San Francisco Public Utilities Commission in an aggregate principal amount not to exceed approximately 1.04 billion to finance the cost of various capital water and hetch hetchy water projects benefiting the water enterprise uh pursuant to amendments to the charter of the city and county enacted by the voters on November 5th, 2002, has proposition E authorizing the issuance of water revenue refunding bonds and uh retirement of outstanding water enterprise commercial paper declaring the official intent of the commission to reimburse itself with one or more issues of tax exempt bonds or other forms of indebtedness and ratifying previous actions taken in connection therewith as defined. Madam Chair. Thank you, Mr. Clerk and colleagues. Just wanted to remind all of us that this item was uh continue from our uh from last week's meeting due to amendments to increase the dollar amount to additional five million dollars to cover pink lake, pine lake, uh emergency repair. And um and so uh I think that that there was already a department presentation and discussion. Uh I believe Jeremy Spitz from SFPUC is here to answer any questions you may have. Um, but if you don't have any questions, we're gonna just go to public comments on this item. I don't see any name on the roster. Let's go to public comments on this item. Yes, we now invite members of the public who have joined us today who wish to address this committee regarding this item number one. Now is your opportunity to approach the lectern. Madam Chair, we have no speakers. Thank you. Seeing no public comments, public comment is now closed. Uh and I would like to make the motion to move this item to full board with recommendation. Second by Supervisor Walton and a roll call, please. And on that motion to forward this ordinance to the full board with a positive recommendation. Vice Chair Mandelman. Aye. Mandelman, aye, member Melagar. Melgar, aye, member Walton. Walton, aye, member Peskin.
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