on the funds that we have invested has declined significantly in the current year's come just given the interest rate environment, so it is under 1%. additionally, the balance of cash we have available has been largely spent through in the last several years, so that a relatively -- and this is a relatively small dollar value, in the $3 billion general fund budget, about $10 billion, but we do anticipate a rather significant drop-off in investment income next year in the city. supervisor kim: just to clarify that again, so the -51% is due to that, our spending down of the general fund, and some losses that we are experiencing? and then the following year, we expected a 2% increase? >> yes. supervisor kim: then it comes up to 34% increase? >> these are the treasures

assumptions about how they expect our short-term interest rates to move on their investment portfolio over this time, so you can see that is pretty wide. they are expecting the world has to recover from its incredibly low return rate that we are experiencing in the current year of under 1%, so, yes, i agree that there is some significant variance. you see a quick bounce back, and another cycle down in the years after. these are the treasurer's assumptions. because of the revenue source we are applying, the rates are small, it does not have a material effect on the bottom- line numbers, but it is a good point, and it is a curious trend. supervisor kim: the other question i had was undermanned and concessions, why there is such a drop. it is pretty steady. then, just for that one year, it is -13.9%.

>> that is up on some further research after your question last time -- there is a specific revenue source coming into the recreation and park department that is scheduled to expire. it is a prepayment of some parking garage spaces, so once the one-time benefit expires, it causes a one-time loss which is then more steady growth going forward. supervisor chu: thank you. >> we are back to it to answer some of the questions that the board have had, and, of course, happy to take any additional questions you may have. supervisor chu: why don't we open these two items up for public comment? are there any members of the public who wish to speak on four or five? seeing none, public comment is closed. for this item, i've reticulate

item five, supervisor chiu and i both have some amendments reflecting additional analysis that the office provided to us today, so i would like to wait for him to return before we take those motions. he is currently on another item at gao, so if we could sit these two items and call items 6 through 8. >> item 6, hearing to review the mayor's proposed budget, fiscal year 2011-2012. item seven, ordered its appropriating all estimated receipts and all estimated expenditures for selected departments of the city and county of san francisco as of may 2, 2011, for fiscal years ending june 30, 2012 and june 30, 2013. item eight, proposed annual salary ordinance enumerating positions at the annual budget appropriation or that it's for selected departments of the city

and county of san francisco for fiscal years ending june 30, 2012, and june 30, 2013. supervisor chu: thank you. these items to come before us before we have heard many of the enterprise department budgets already. at the first week hearing, the san francisco international airport had not yet come to an agreement with our budget analyst in terms of cut recommendations, said that is the reason why we are hearing the budget again today. items six through eight will have to be continued to the call of the chair so that it has time -- or the rest of the budget has time to catch up with it before we forward out all of these items to the full board. with that, if i could ask mr. martin from the airport, to come to the podium and reflect on any progress that has been made with the recommendation. >> the airport has reached agreement with the budget analyst on budget cuts. supervisor chu: thank you very much to the budget analyst.

i know in our report, we do see reflected changes that both the budget analyst in addition to the airport have come to agreement with. is that your understanding as well? >> yes, that is correct. supervisor chu: ok, wonderful. if there are no other questions from the committee at this point, would we like to take the motion to accept the budget analyst with the recommendation? ok, we have a motion to accept the budget analyst recommendation, and we will do that without objection. then, colleagues, on items 6 through 8, can we continue these items to the call of the chair so that the rest of the budget has time to catch up with it? we have a motion, and we can do that without objection. thank you. let's return to items four and five. if i could ask mr. young to contact our president and let him know that we are returning to it for the evidence that he would like to propose. meanwhile, i will speak to some of the amendments i am

proposing for this. colleagues, before you, i believe these items could be put in and would not require a further continuance. the items that i would like to propose that we amend has to do with item two, that you see on your first sheet, which talks about asking the comptroller's office to provide to us a regular review differ changes and decisions that we make. five-year financial plan is only as good as the decisions we have made and the assumptions we have put in. to the extent that we passed certain policies or change certain things, whether it is approving labor contracts or other things that impact

expenses and revenues going forward, that by-your manager plan ought to be updated to reflect the best information that we have. some of the amendments being proposed today reflect a desire to make sure that that five-year plan stays current and stays relevant as we go forward. one of the amendments that i would like to make, which is item two, would require or would insert at the end of the section called control, wage, and benefit costs of the plan, which is on page 20 -- the part that would be inserted would read, " the controller's office shall report on projected employee wages as a costs compared to the strategy adopted in the financial plan." this is intended to make sure that as we are proving mou's going forward for labor contracts, that we adopt key significant changes, for example in the pension reform package that will be coming before us, that we will be updating the plan to show this differences. the other amendment that i would

like to make is on the back of the sheet that i passed out to you. it really is to acknowledge that there could be variance in the future your economic assumptions with the financial plan. again, as the controller's office relate, the revenue projections that we relate -- for example, if we had better than expected revenue -- really does alter and change what our five-year financial outlook looks like. the proposed amendment would really speak to that and said that there could be differences in what we actually see in the future based on what our actual economic situation turns out to be. it is really making sure that there is variability in the economy and what really comes to be and also making sure that we are controlling and capturing potential big changes in the plan. those are the amendments that i would like to propose. supervisor chiu: thank you. in addition to what our chair just propose, and number of

other amendments came out of our conversation last week. we have circulated a couple of these to you. the three additional amendments i would like to make would be to insert at the end of the strategy is to restore fiscal stability is section, to require the controller's office to issue reports advising us on changes to the long-range financial outlooks that are assumed in the plan as well as progress about that in the annual budgets toward those financial strategies. that is the first amendment. the second would really be to do similar types of review with regard to our additional tax fees and other revenues. again, requiring the office to report on the various projected revenue increases compared to what we have adopted in the financial plan. the third amendment i would like to offer would be to think about how we move forward with the consideration of not using one- time solutions so that we are really implementing structural

changes that will force or will help us not have to come up with one-time solutions every year. the language would say that the board of supervisors' request that the controller research and develop financial policies to achieve the strategy is to really help phase out onetime solutions. this is obviously a topic that is not an easy one but one that we all understand if we do not do this, we will continue to see structural budget deficits for years to come. supervisor chu: thank you. we have two combine motions that would reflect multiple changes that would add additional reporting to update the plan and keep it a relevant plan. we would ask the controller's office to provide additional policies, and also of knowledge that there is variability in what we see in the economy compared to what we see in the plan.

can we take these without objection? ok, we will do that without objection. we have items four and five before us. can we entertain a motion to file item four, which is a hearing? ok, we have a motion for that. and to send item 5 forward with recommendations as amended? we can do both without objection. thank you. ok, do we have any other items before us? >> that completes the agenda for today. supervisor chu: thank you. we are adjourned.

>> good morning and welcome to the dedication of westbrook plaza. this is an unusually beautiful day for which i'm sure we are all very grateful. i am the interim president of mercy housing. this event, which celebrates the creation of 49 units of affordable housing and the state of an art community health care

center is the result of a strong partnership between mercy housing and the south of market health center. more than 12 years have worked -- of work. the dedication and commitment of numerous, talented, hard-working people. participation of a lot of public and private partners and a lot of money. it does not take just a village to create a community facility such as this. it takes an entire metropolis. we will take the opportunity today to thank many of the people and institutions who have contributed to this stunning facility and because there are so many to thank, i will be brief now so that we can move the program along. at this time, i am particularly pleased to enter is the director -- the executive director of the south of market health center, an extraordinary community leader, fabulous partner, and a great person to share the podium with. [applause]

>> thank you. i really appreciate everyone being here today. let me first of all give you a little history. some of you may know mrs. westbrook and some of you may not know mrs. west work. but she is a dynamic leader in san francisco. her history is outstanding. it is so outstanding that we did not hesitate in naming this the westbrook plaza. she has done a lot for health services, not only in san francisco, but throughout the nation, and she has done a lot for housing. she served on a lot of commissions in san francisco. so because she has spent her whole life looking out for those who we sometimes must reach out to give a helping hand, she always did that and made sure

and reminded all the politicians, all the directors and exactly what our responsibility is in taking care of the needy. with that philosophy, that is the reason i came to this organization. and because of her, that is why we push -- we really started this project almost 20 years ago. i came in 1990 to this organization and in 1991, the board and this community wanted a new medical facility. so out of that, it took years. how many mayors? one, two, three, maybe four. it was four. and it was under willie brown who put the first amount of money in the redevelopment budget to deal with side acquisition or at least to look

for sites. it was not enough to buy the site, but at least we were looking for it. so we found this site. i appreciate everyone being here. this beautiful two buildings out of half an acre of land. it is amazing what can be done in san francisco with creativity. i want to thank everyone, including all the people here that have been involved. there have been so many. i could never named everyone, and i appreciate that. i would like to invite our first speaker up. it is our mayor, mayor edwin lee. it is nice to have a mayor that comes out to the community. this is a community facility for residents of san francisco, and being the mayor of san

francisco, i'm sure his heart is as big as mine in terms of what this means to the residents of san francisco, so i want to introduce the mayor to everyone. [applause] >> thank you very much. i want to also continue the very important attribute that we have for eloise westbrook. when i was just a young workers never trying to cause trouble in the city on behalf of low-income residents, i have already heard of ms. westbrook. she was already helping lead the effort to improve housing conditions for all of our public housing tenants. my today, it is just really appropriate to make sure that our city honors mr. westbrook,

her family, who is here today, i know. thank you very much for being here. this is very appropriate that this new project be in the name and westbrook loss of the another great place for people to understand and know about the history of the city. i am so happy to be part of this great city when it names and after people in the community who have done great work. i recognize that, and i know doris, our supervisor, was there as well. she recognizes that. thank you very much for being here, too. i want to also continue to congratulate mercy housing. the south of market health center, for working so collaborative we with our redevelopment agency. this $47 million project -- over 1/3 of it is the contribution of our redevelopment agency. thank you, redevelopment, for putting this together. [applause]

it just shows again not only the fantastic collaboration with very reputable housing builders like mercy housing and they're wonderful financial participants -- i know wells fargo is here and u.s. bank and others, who are just a key to so much of our great housing we're doing -- but we are also combining it with some fantastic health provisions, which i know miss westbrook would be extremely crowded here. that combination coming together in the middle of our city and once again exemplifying how redevelopment works in our city and how it becomes yet another example for the rest of this state to understand the role of redevelopment. [applause] wonderful contribution. with that contribution, you can make a successful project but also fulfil such an important objective of this city, affordable housing with the support that the tenants and

residents here will need. again, i want to thank all of the collaboration that this represents. the communication to the rest of the state that even in the hardest of economic times, when we pull the right entities together, when they are focused, and we rebuild community around the objectives we have, we have the winning combination, and we have a redevelopment agency and mercy housing and south of market health center to prove it. i want the governor to even come here to see what we have done. i want all the other officials to come, to recognize how we do it here in san francisco and how we can do it elsewhere throughout the state if we have a focused and do not give up on the old promises that this city has always made, that we will take care of the most needy and do it the right way, we will do it together. thank you very much for this wonderful opportunity.

>> well said. well presented. also in this project, not only in terms of the redevelopment agency, mercy housing, all the bankers south of market and all of our founders -- and we had a lot of people do in private donations for this project -- we also reached out to washington, d.c. to bring some of our money back to our community. it is a nice feeling when that happens. so both of our representatives have significant involvement in the success of this project. i would like to bring to the podium represented nicole rivera from nancy pelosi's office --

representative nicole rivera. she called me and said she may year by -- she may be here by the time was that the program. ok, well, we will go on to our renowned senator, who also had a significant contribution. i appreciate what they have done in terms of making sure that money that we pay taxes comes back to san francisco in some form or fashion. we have jim here to represent dianne feinstein. [applause] >> thanks. mayor, nice to see you. doris, always a pleasure to be with you. thank you so much. this is a longstanding relationship. the mayor said 35 years for him. more than 50 for the senator. we are grateful that her family is here to celebrate this. i was talking with sister lillian before we got started, and talking about the old

hospital. the first mercy housing project that was done here a long time ago. diane was then the -- the senator then was there to pick the lottery. this time, you did not have to do a lottery. this time, you had a great partnership with the south of market health center. really an important piece of work and just a beautiful facility, so we like to thank you for all the good work you did and congratulate you on just a tremendous project. charlie, good job, buddy. [applause] >> the next person i would like to bring up to the podium is an individual that i am glad he is here. because he is with the federal government, and the south of

market health center is funded by the federal government, and we want to continue that relationship. i would like to bring up to the podium dr. john meroini. -- meroni. he is a regional administrator. [applause] >> good morning, everyone. i am with the health resources and services administration, the agency that provides some support to the south of market health center in addition to many other health centers throughout california. region 9, which includes arizona and nevada, hawaii, specific jurisdictions, and throughout the united states. i had the opportunity -- actually, i work just a few blocks away at the modern federal building towards market street. i must confess that my first visit to the south of market health center was in december when the administrator was in

san francisco, and we had the opportunity to visit the old space or the current space, and the new space as it was being billed out. i must say, we were all just so impressed. i had a little bit of envy. reconsidering where i should seek my primary care. such a beautiful, impressive space. and though the recovery act has been helpful in making these expansions possible, and the affordable care act as well, throughout the united states, is contributing to expansion of the health center program, such that by 2015, the program which serve nearly 20 million people in 2010 will serve as many as 40 million persons by 2015. i am just so excited and pleased to be here. congratulations. thank you.

[applause] >> [inaudible] [laughter] >> the next person i would like to bring to the podium -- i think my first experience interfacing with him was when we broke ground. he came to the groundbreaking. this is probably one of the unique projects under his policy jurisdiction. the president of the redevelopment commission. let me just say this -- that the redevelopment has been a tremendous friend to this project and to the community. all the things that people i have heard say about the redevelopment -- they really do not realize how positive the redevelopment has an impact on the development of a community.

they do an outstanding job of working with communities and really, they do not do anything to really hurt communities. it is more to build up the community. so i would like to bring the president to this podium. thank you. >> yes, it is truly a great day. seems like yesterday, which was two years ago, i think i saw in this same spot and watched a show will go in the ground and some dirt spread around. today, we are surrounded by this magnificent structures which will serve our community for a long time to come. before i go any further, i would like to acknowledge my fellow commissioners who are here today, who have served the redevelopment agency commission longer than i have, who i emily missing today is mr. lee roy king -- who i am really missing

today. mr. king was probably on the commission before this process even started. he is the one who should be here in my place to recognize this opening and thank everybody who has participated. i would like to acknowledge ms. augustino. and mr. range. i have never seen such a strong advocate for his community. he is always there for south of market. he is always they're not only for his project but everybody else's product. he is a true hero in the south of market area. thank you very much for your great dedication. [applause] at redevelopment agency, we see a lot of community groups, community tax theory the south of market -- community pac's.

the south of market pac really sets the bar throughout the city. they should be extremely thankful to the participants and the board because they really make things happen. congratulations and thanks to them. i would also like to thank the mayor. on behalf of all of his agencies that have served, have been such a great partnership to this project and to redevelopment agency. of course, nothing would happen without the lenders and the financial partners, thanks very much to them. and to the westbrook family, this gives you something to be proud of forever. and pass on to further generations so ms. westbrook's name will never be lost and she will always be known as a true creator.