Second. All in favor . Opposed. Next item. Clerk Public Comment on item 8 . President hirsch theres no public, so Public Comment is closed. Next item . Clerk item 9, adjournment. So moved. Second. President hirsch all in favor . Opposed . This meeting is adjourned. Working for the city and county of San Francisco will immerse you in a vibrant and dynamic city thats on the forefront of economic growth, the arts, and social change. Our city has always been on the edge of progress and innovation. After all, were at the meeting of land and sea. Our city is famous for its iconic scenery, historic designs, and worldclass style. Its the birthplace of blue jeans, and where the rock holds court over the largest natural harbor on the west coast. Our 28,000 city and county employees play an Important Role in making San Francisco what it is today. We provide residents and visitors with a wide array of services, such as improving city streets and parks, keeping communities safe, and driving buses and cable cars. Our employees enjoy competitive salaries, as well as generous benefits programs. But most importantly, working for the city and county of San Francisco gives employees an opportunity to contribute their ideas, energy, and commitment to shape the citys future. Thank you for considering a career with the city and county of San Francisco. Shop and dine in the 49 promotes local businesses and challenges residents to do their shopping and dining within the 49 square miles of San Francisco. By supporting local Services Within our neighborhoods, we help San Francisco remain unique, successful, and vibrant. So where will you shop and dine in the 49 . My name is ray behr. I am the owner of chief plus. Its a destination Specialty Foods store, and its also a Corner Grocery store, as well. We call it cheese plus because theres a lot of additions in addition to cheese here. From fresh flowers, to wine, past a, chocolate, our dining area and espresso bar. You can have a casual meeting if you want to. Its a Real Community gathering place. What makes little polk unique, i think, first of all, its a great pedestrian street. Theres people out and about all day, meeting this neighbor and coming out and supporting the businesses. The businesses here are almost all exclusively independent owned Small Businesses. It harkens back to supporting local. Polk street doesnt look like anywhere u. S. A. It has its own businesses and personality. We have Clothing Stores to gallerys, to personal service stores, where you can get your hsus repaired, luggage repaired. Theres a music studio across the street. Its raily a diverse and unique offering on this really great street. I think san franciscans should shop local as much as they can because they can discover things that they may not be familiar with. Again, the marketplace is changing, and, you know, you look at a screen, and you click a mouse, and you order something, and it shows up, but to have a tangible experience, to be able to come in to taste things, to see things, to smell things, all those things, its very important that you do so. Here we go. Good morning, this meeting will come to order. This is june 12th, 2019, special meeting of the budget and finance committee. I am sandra lee a few, chair of the committee. I am joined by Catherine Stefani , raphael mandelman, Hillary Ronen and normandy. I would and normandy and norman g. We have any announcements . Signs also phones and electronic devices. Complete speaker cars and copies of any documents should be submitted to the clerk. Itunes acted upon today will appear on the june 18th board of supervisors agenda unless otherwise stated. Thank you very much. Please call items one through five together. Item number 1 his proposed is proposed interim budget an appropriation ordinance appropriating all estimated receipts and expenditures for the department and the city and county of San Francisco as of june first, 2019 ending june 2020 and june 2021. Item two is proposed interim annual salary ordinance enumerating positions in the annual budget and appropriation ordinance for the fiscal years ending june 1st 2020 and june 30th 2021, continuing creating or establishing these positions. Item five is resolution approving the interim proposed budget of the office of Community Investment in infrastructure operating as a successful agency to the San Francisco redevelopment agency. Thank you very much. We have mr. Rosenfield, our city controller 2 on all those three items. Good morning, members of the committee, very briefly to describe what the interim budget is and why you adopt it. As you know, our charter requires the mayor and the board to come to completion on the budget process by the end of july, which is actually one month after the start of the fiscal year. So to provide authority for us to continue to pay bills, pay employees and continue governmental operations during the month of july, the board adopts an interim budget that covers that one month period, it is a status quo budget for that one month period, but it allows us to continue to operate government while the board board completes his deliberation on the budget. Im happy to answer any questions, but fundamentally, thats what these items are. Thank you very much. Seeing no questions from my colleagues, i will take Public Comment on items one, two, and five. Seeing then, Public Comment is closed. I make a motion to move this to the full board of july 16th Board Meeting, im so sorry, president . A little bit of an explanation about why the budget has moved up to 5 million. I apologize, i missed the comment. I guess this year she appropriation or the budget is 68 million, and next year his 73 million. I want to have explanation as to what is calling the five milliondollar Million Dollar raise, which is about eight . I believe you are referring to the Controllers Office budget which i will be presenting later today and i will be more than happy to answer those questions then. This is simply the interim budget for the city for the month of july. I think madam chair. Oh, okay. Yes, what we are doing. Sorry, wrong item. I believe how this was explained to me, layperson as i am, it is that this is a gap measure between this chariot before we adopt the regular budget. The city still has to operate, so these are three items that i think we are voting on to fill the gap as a gap measure. Absolutely correct. I think if it pleases the committee, forwarding that to the next week Board Meeting would allow the ordinances to be adopted in time to be operative at the start of the fiscal year. Absolutely. I would like to withdraw that motion and i would like to formally put emotion a motion forward to move this to the next meeting of the board on june 18 th. Could i have a second . And i can take that without objection. Thank you very much. Please call items three, four, and six together. Item three is budget and appropriation ordinance giving all estimated receipts and expenditures for the departments of the city for the fiscal years ending june 30th 2020 and june 30th 2021. Item four as annual salary ordinance enumerating positions in the annual budget and appropriation of the fiscal years ending june 30th 2020 and june 30th 2021 continually creating and establishing these positions and item number 6 is a resolution approving the fiscal year 2019 budget of the office of Community Investment in infrastructure operating as this special agency of the San Francisco redevelopment agency. Thank you very much. So i would first like to say good morning to everyone. Before we get started, i wanted to welcome everyone to the beginning of the board of supervisors budget process and share a little bit about today and the next few days and weeks, what they might look like. First of all, everything that i cover now should be Available Online at the budget information link on the board of supervisors website. The Budget Committee is doing firstround department of presentations this wednesday, thursday, and friday. These presentations will not get include reports from the budget and legislative analyst. Each day will begin at 10 00 a. M. And the committee will recess at approximately 12 30 p. M. For a 30 minute lunch im asking the departments to be concise in their presentations and to that end, i have asked the clerk to allot five minutes per department. For large departments, if you like to request additional time, you may request additional time in increments of five minutes. After each brief, highlevel budget presentation, the committee will have the ability to ask questions and engage in discussion but no decisions will be made this week. I do want to remind everyone that we have 20 departments to get through today, so i will be moving us along during the process. There will be Public Comment today and every day that the committee meets, and at the end of the budget item, which is after the completion of the departmental presentations, which is after the completion of departmental presentations. There is one main Public Comment day on monday, june 24th beginning at 11 30 a. M. With that, lets start with our first speakers. I would like to call up the mayors budget director kelly could Patrick Kelly kirkpatrick. Good morning, supervisors. I am the mayors budget director and with this presentation i will be kicking off a high level overview of mayors proposed budget. I will note you have many days worth of hearings in which the city departments will walk through many of the items that i am going to highlight in much greater detail, so should you have questions or they are department his perspective, i will do my best to answer. With that, i will start with a budget overview, i will do a high level of how we balance the general fund budget, how did we overcome the deficits that were anticipated starting this winter , and then i will go through main highlights of the mayors proposed budget and then flagged some forwardlooking issues and next steps. Budget overview, the citys budget has reached 12 billion each year for fiscal year 1920 and 2021 approximately. It still maintains that about that 5050 split with 6 billion being Nongeneral Fund and 6 billion representing the general fund, of that general fund, allocation, about 2. 8 billion is what we describe as nondiscretionary, that includes the over billion dollars worth of city voter mandated baselines and setasides, as well as state and federal funding that is dedicated to very specific allocations, leaving about 3 billion for discretionary general fund uses. Key themes of the budget and you will notice alignment with many of the priorities that the board identified through the board hearings as well, first and foremost, addressing a Housing Affordability is a major priority of both the mayor, the city, and the board as well, additionally, the mayors budget makes significant investments in preventing and reducing homelessness, responding to Critical Health needs in our community, making streets cleaner and safer, improving Public Safety and accountability and responsiveness, supporting Small Businesses and workforce are vital to ensure Service Delivery continues in the city, we have made some key investments and strengthening our social safety net, and focused on creating equitable opportunities and Government Accountability towards residence so how did we balance the budget you will remember that we had a protected deficit in december of 271 million during the march update. That was reduced to 156 million , since then, we have balanced the budget, as well as make general Fund Investments and additional programmatic areas. The revenue side to help us balance the budget, the Controllers Office identified both one time additional revenue as identified in the ninemonth report based on current year departmental savings and revenues better than budgeted. That was over 50 million. Additionally, based on current year trends, the Controllers Office revised forwardlooking ongoing revenue, notably related to business tax. The Controllers Office will speak to those trends in the presentation on the revenue letter. A notable other solution to help us balance the budget was a state cost offset for the inhome support Service Worker program, which supports 22,000 disabled and senior residents living in San Francisco to live independently. You will know that back in 2016 under governor brown, the state made a significant caution to the city to support this program and in an upcoming twoyear budget that increased cost represented 125 million. Under governor newsomes proposed budget, we are receiving about a 41 milliondollar offset to that while it is significant, it does not offset the full cost. It did help us balance the budget from the assumed hundred and 25 million. Additionally, departments can strengthen growth following budget instructions and reprioritizing with additional resources. Absorbing Cost Increases to preserve discretionary revenue choices and meeting requested target reductions to help close the deficit. With those balancing solutions, we were able to support the negotiated labour increases. I believe those m. O. Use will be pending at the full board shortly. There are over 28 pending. This is a significant list and a cost increase will did exceed the projection in the fiveyear pennant Financial Plan but we were able to balance giving those previous solutions. We are able to make key investments through the general fund and alignment with the key priorities that are also reflected i would describe momentarily how that plays in into the overall landscape of the proposed budget. Notably, we were able to make strategic longterm investments including fully funding the capital plan that recommended levels, which is 325 million over the next two years. Of which, 130 million is for road repaving to ensure our roads are better equipped to handle the volume of riders and drivers on them. The governors revise noted the city was not only, is expected to receive three fiscal years ago, fiscal year 16 and 17, as well as we have anticipated in the upcoming budget and alignment with the ordinance that you all passed yesterday at the full board, 1920 access, and appropriates just that one year of the upcoming excess. In alignment with that ordinance , the mayors proposed budget allocates fiscal year 19 20 perspective, 50 , at least 50 for housing, and no more than 50 of it being ongoing and significantly less than that is supporting ongoing cost. The way that we have proposed this allocation within the mayor s office include significant investments in Affordable Housing preservation, production and subsidies in alignment with the boards ordinance allocating 40 for preservation and 60 for production. We make additional investments in homelessness and Behavioral Health services, this includes notable continuation of fiscal year 1819 allocations for homelessness and housing, including Navigation Centers as well as important master lease units. The budget also make strategic onetime investments in helping to support childcare facilities child care facilities, expand sfusd educator stipends and supporting in fiscal year 1920, city college through the allocation. There are additional and sent enhancements that provide a vision zero support through d. P. W. , as well as Emergency Response equipment for fire safety. Among the key enhancements, notably Affordable Housing, the proposed budget designates a billion dollars in new funding for the production of preservation of Affordable Housing. This includes the 600 milliondollar proposed geo bond for Affordable Housing, which will be heard at this committee tomorrow. As well as allocating discretionary funding, most significantly are passed allocations and the allocations proposed in the mayors proposed budget that get us to that 1 billion that is on top of 900 million that was already in the pipeline, as well as the department of homelessness and Supportive Housing. We are making significant investments in Affordable Housing and advancing as quickly as we can. That includes a 118 million in new funding for Land Acquisition , create predevelopment and production, notably Gap Financing in the proposed budget. It is 28 million of acquisition rehab the big fit of existing rental housing. The mayors proposed budget includes 12 quote 12. 5 million to help honourable residents remain house. This includes shallow subsidies for rent for seniors and families. Theres an additional 1. 6 million for emergency rental assistance