San Francisco Budget and Finance Committee Meeting, April 15, 2026

The Budget and Finance Committee, chaired by Supervisor Connie Chan and joined by Vice Chair Matt Dorsey and Member Danny Souter, met on April 15, 2026 to review six agenda items. The committee voted unanimously to recommend all items to the full Board of Supervisors, with items two and three approved without recommendation (by consent) and item four amended before referral.

Consent Calendar

• No consent calendar was noted.

Public Comments & Testimony

• No members of the public spoke on any of the six items.

Discussion Items

Item 1: Resolution Authorizing Acceptance of State Funds for Voting System Replacement

• Presenter: John Ernst, Director of Elections
• Details: The Department of Elections requested approval to accept and expend up to $416,431.10 from the California Secretary of State to reimburse costs for voting system replacement (lease payments to vendor) for July 1, 2025 through August 31, 2026. The city must provide matching funds of $138,810.37; existing lease payments exceed this amount, so no additional city expenditure is needed.
• Discussion: Chair Chan asked about election security and federal interference. Director Ernst stated the department is focused on the June election, meets with the Department of Emergency Management, and works with the FBI and DOJ; he does not expect security issues. He described robust transparency measures including livestreaming ballot handling, internal cameras on servers, and in-person observation. Chair Chan and Vice Chair Dorsey expressed strong appreciation for the department's work and transparency.

Items 2 & 3: Resolutions Establishing Appropriations Limits for FY 2025-2026

• Presenter: Michael Bitten (Controller’s Office) and Bridget Katz (Office of Public Finance)
• Details: The Gann limit (Article XIII B of California Constitution) limits the amount of tax proceeds the city can collect. Item 2 sets the city’s appropriations limit at approximately $14.6 billion, based on a 0.39% population decline, 6.44% per capita personal income growth, and voter-approved increases (Prop M, passed 2024, exempts business taxes from limit for four years). Actual tax proceeds subject to the limit are $5.5 billion, leaving $9 billion under the limit. Item 3 sets the limit for special tax districts and infrastructure financing districts at the amounts listed (combined adjustment factor of 6.02% for FY 25-26). Budget Legislative Analyst Nick Menard recommended approval, noting spending in both categories is well under the limits.
• Chair Chan noted that further hearings on debt policy, fee waivers, and related issues will occur later in April and early May.

Item 4: Ordinance Extending Delegation of Authority for Green Infrastructure Grant Program

• Presenter: Willis Logsden, Senior Watershed Planner, SFPUC; Jeremy Spitz presented clerical amendments.
• Details: The ordinance extends through July 1, 2031 the authority for the SFPUC General Manager to enter into grant agreements under the Green Infrastructure Grant Program, with terms up to 20 years after project completion. The program provides funding to large property owners to build green infrastructure (rain gardens, green roofs, permeable pavement) that captures stormwater to reduce pressure on the combined sewer system. Since 2019, $30 million has been awarded to 29 projects. The program aims to capture 1 billion gallons of stormwater by 2050. The committee accepted clerical amendments (adjusting ordinance numbers, adding “July 31st” as annual review date, etc.) and recommended approval of the amended ordinance. Chair Chan praised the program’s benefits in her district (Lafayette and Alamo schools). Member Souter asked about geographic distribution; staff acknowledged the half-acre minimum may limit projects in dense areas and noted other grant programs exist for smaller sites.

Item 5: Resolution Approving Contract for Hetch Hetchy Water and Power NERC Compliance Support

• Presenter: Adam Ozerkowitz, Division Manager, Hetch Hetchy Water and Power, SFPUC
• Details: The resolution authorizes a five-year contract (May 2026 – May 2031) with Archer Energy Solutions LLC for up to $11.6 million to provide compliance and audit support for the North American Electric Reliability Corporation (NERC), Western Electricity Coordinating Council, California ISO, and CPUC. Hetch Hetchy operates components of the bulk electrical system (four powerhouses, transmission lines, substations) and must meet 56 reliability standards. Budget Legislative Analyst Nick Menard noted the contract may be undersized given historical spending of $2.3 million/year and inflation; SFPUC staff acknowledged the risk but noted internal hiring may reduce contract dependence. Chair Chan flagged potential need for a supplemental appropriation in the final year. The committee recommended approval.

Item 6: Resolution Approving Agreement on Caltrain Pension Obligations

• Presenter: Jesse Kaler, Director of Strategy, San Francisco County Transportation Authority
• Details: The resolution approves an agreement among the three Caltrain member agencies (San Francisco, San Mateo County Transit District, and Santa Clara Valley Transportation Authority) to backstop Caltrain’s pension obligations to CalPERS if Caltrain were dissolved or its contract terminated. This is required for Caltrain to enter a separate contract with CalPERS, giving it greater oversight of employees. Caltrain’s assets ($4.36 billion) vastly exceed its unfunded pension liability ($15.7 million as of 2023), making the risk extremely low. Budget Legislative Analyst Nick Menard noted Caltrain’s ridership is down 38% from pre-COVID and net income negative, but a pending regional sales tax measure could cover all expenses for 14 years. Chair Chan supported the agreement, calling it a necessary regional risk-sharing step. The committee recommended approval.

Key Outcomes

• Item 1: Passed 3-0, referred to full board with recommendation.
• Items 2 & 3: Passed 3-0, referred to full board with recommendation.
• Item 4: Clerical amendments accepted; amended ordinance passed 3-0, referred to full board with recommendation.
• Item 5: Passed 3-0, referred to full board with recommendation.
• Item 6: Passed 3-0, referred to full board with recommendation.
• All items are scheduled to appear on the Board of Supervisors’ agenda of April 21, 2026 unless otherwise stated.