longer eligible to withdraw from the reserve. so in order to ensure that the policy does not restrict that nonrecurring revenue source to a nonrecurring expense, even though it has now created a hole in the budget, this allows no the use of that non-recurring revenue to plug at all. supervisor kim: is this considered a one-time non- recurring revenue stream? >> you would have the policy explicitly allow the mayor and the board, as an eligible nonrecurring expense, allows you to make deposits to reserves. if we have non-recurring revenue, as the board of supervisors, you can choose those nonrecurring revenues and fund reserves. i do not know if that gets to your question. supervisor kim: kenny redefines be used to back fill ongoing expenditures? >> in years were the rainy day

reserve is triggered, which is revenue is declining versus the prior year or versus the prior year peak, it allows the mayor and the board to appropriate money from the rainy day reserve equal to half the ballots in the reserve, and that money is explicitly intended to be for any purpose, including operating budget costs. supervisor kim: ok, thank you. >> this defines what discretionary revenue is. we tried that out to the charter. secondly, it excludes that that results in general fund savings or is backed by non description area revenue sources. we did not want to find ourselves in a place where you would be forced to make a poor business decision as a city because of the 3.25% cap. if we had a cabin in the city

but had the opportunity to buy an office building where the debt service we incurred from the debt would actually be cheaper than what we're currently paying to the private landlord, we did not want to close the door on that artificially with the policy. we believe this exclusion avoids that circumstance. we talked to supervisor farrell about this, and he is working with our office on the legislation. he is comfortable with it. that concludes my brief presentation. i would be happy to take questions. supervisor chu: thank you. it's good to the budget analyst report. >> on page 9 of our report, we noted file a 11-0999 would codify in respect the expenditure of nonrecurring revenue is only for nonrecurring expenditures, which we fully support, resulting in -- for example,

that will mean expenditures upon capital improvements and equipment, but this would result in a demolition of the board of supervisors options for three appropriating savings achieved by the board of supervisors. i am talking about during the annual budget process for addax and restorations. we do support the principle of the expenditures of nonrecurring revenues to be applied to non- recurring expenditures. on page 11 of our report, continuing on that same file, while file a 11-0999 provides a precise definition of selected nonrecurring revenues, the ordinance provides an open-ended definition of nonrecurring expenditures, leaving room to interpret the proposed future expenditures that would qualify as a nonrecurring expenditures.

in addition, the proposed ordinance does not provide the board of supervisors with an opportunity to dispute the interpretation of what is and what is not a nonrecurring expenditure. in the event that the board of supervisors wish to object to the classification of certain nonrecurring expenditures would be to make a one-time suspension of the provisions of file 11- 0999. and that would be on a two- thirds vote. of the board of supervisors. our recommendations are on page 12. as i stated, at the controller's definition of nonrecurring expenditures are open-ended. therefore, we recommend that you requested the controller to amend the file to find nonrecurrent expenditures as the six expenses listed in the proposed ordinance. by striking other uses that do

not create liability or expectation of substantial ongoing cost, including but not limited to. that would be page seven, and lines 8 and 9. the controller disagrees because it is possible they will identify additional nonrecurring expenditure is besides the six included in the proposed ordinance. we consider approval of filed a 11-109, we proposed changes in from the existing rolling two- year budgets. the board of supervisor reviews the budgets every year to a fixed two-year budget would reduce by the board of supervisors every two years of the policy decision by the board of supervisors. the trigger threshold for reviewing the second year of the fixed two-year budget, the file has been proposed its budget

costs or revenues are projected to change by more than 5% the second year and that we also consider approval of that 5% trigger to be a policy matter for the board of supervisors. let me emphasize that in general, we're fully supportive of the controllers financial policies. however, since there are different -- there are significant changes to the whole process, we consider approval of the three pros to ordinances as amended with our suggested recommendations to you. and the others and the proposed resolution as amended to be policy matters to the board of supervisors. supervisor chu: thank you. to clarify with the city attorney, with the amendment as a whole be substantive or not? it would not be substantive. ok, thank you.

let's open this up for public comment. if there are members of the public who wish to speak on items nine, 10, 11, or 12. please come forward. >> right at the onset, for those or at home, on matters like this, we need three minutes. but as has been the custom recently, some despicable chairs just give us two minutes, and that is uncalled for, especially in san francisco. having said that, i have listened to the narrative that the controller gave and shed some light on, and what i would like to say is that in the last five years, we see an erosion of the legislative branch. we know that in 1996, when willie brown was the mayor, he clipped the wings of the city

administrators. so right now, for all practical purposes, we have the legislative branch and executive branch. our only saving grace is the budget analyst and the comptroller's office. and hopefully the mayor's office and the budget office will somehow help the constituents of san francisco. was it pains me is that in our shelters, we do not give our people, not even a bed to sleep. we have poor people that are given a sheet, while the so- called representatives are talking about a rainy day fund. if the san francisco unified school district has a problem, do not rely and our city every year for a rainy day fund. that is not called for. what we really need to do is to be compassionate and not allow

our indigent population, our poor population, to be sitting on a chair day in and day out, for months, when we need to give them a bath. i have two seconds, may i have it? [bell rings] supervisor chu: thank you. next speaker, please. >> good morning, supervisors. [unintelligible] i think that certificates of participation should not be used to pay for maintenance. i also think that attaching cop's to the discretionary

budget is wise. however, the funds are designated for health purposes, and money for this fund should not be used for other unintended purposes. please continue to use the tobacco fund for public health purposes for which it was originally intended. while the 3.25% spending cap is theoretically a very good idea, the city will continue to fill a discretionary fund with principal and interest payments will be on 3.25%. the 10-year capital planning committee reports evidence of the 3.25% being maintained, and it clearly shows that from 2017- 2018, 2021-2020, the percentage will go as high as 4.1%. the discretionary fund is variable. departments are seeking to

change the amount. a two-thirds vote of the board of supervisors will allow this, but i also believe the current board history will show that the board of supervisors will use cop's to replace general obligation bonds and it will prove to be irresistible to san francisco's financial community. i've received 85% or 6%. thank you. supervisor chu: thank you. >> hello. my name is debbie with the san francisco command services network peter i am here to speak against the proposal for nonrecurring revenue policy. this represents yet another set aside that will hamstring the city's ability to maintain import and services during difficult economic times.

the city has already taken steps to restrict the use of one-time funds with the budget stabilization reserves and the rainy day fund. there's no reason to tie the city's hands further. this is predicated on the idea that key services might be disrupted in future years. if we use one-time funds this year. but that ignores that one-time funds have prevented disruption every year by saving safety net services during the recession, a time of greatest need. today's child care discussion was a perfect example of how the process can work without this kind of policy. we have a need. we have some one-time funds. we have an honest discussion about it. then we decided we're going to support it, even though we are reluctant because there may not be money tomorrow. in past years, we have seen $43 million in restorations. this current year, we do not need to pass the policy to be able to do those kinds of restorations. we had $16 million restored a

few years ago. that was the last time nonprofits got accustomed doing business increases. it has been flat-funded ever since. for health and human services funding, how can we argue that one-time revenue should not be used when we're talking about saving lives? a starving man does not turn down a bowl of soup because there might not be sued tomorrow. there's nothing wrong with using one-time funds to maintain service for the vulnerable san franciscans during difficult times. the save money, and would be more costly to the city of we close them and try to rebuild them later. in essence, all money is one- time money. we take grants all the time. then we talk later about back filling when it expires. that is fine. we do not need a policy. i urge you to reject this as it -- recommendation. it is knack for san francisco. supervisor chu: thank you. are there other members of the public who wish to speak on these items? seeing none, public comment is closed.

if i can ask the controller to come up again. you have got the amendment as a whole. did we get copies of that? >> i believe so. you should have copies in front of you. supervisor chu: yes. so these are not substantive in nature that the city attorney has confirmed -- they clarified the interaction between the rainy day reserve in the budget stabilization reserve, clarified the effective date, and for the debt management policy, defense discretionary revenue but also excludes debt that results in general fund cost savings. colleagues, can we take those amendments without objection? that will be the case. colleagues, on the underlying items? do we have a motion to send the item forward? i just wanted to address a couple of things. i know we did have public

speakers who spoke on the debt management policy. i think it is wise for us to set forward a debt management policy. i want to thank supervisor farrell for his leadership on this topic and item. i think the amendments we have made, with regards to excluding debt that resulted in general fund cost savings, is something that is good and allows us to have flexibility on the issue with regard. with your direct to limiting the one-time expenses, i want to thank the analyst for the recommendation. however, i would be supportive of moving the item as is without that recommendation. the reason is that i think that as we go forward, we may find nonrecurring expenditures that we might not have anticipated. so i think it is prudent for us to allow for that flexibility to be they're going forward. finally, with regards to the nonrecurring revenues, it is a very limited definition of what non-recurring revenues are, at least in this policy as stated.

given what the policy will look like, i am covered it by the fact that we're not saying that all non-recurring revenues can be -- prior year fund balance would be counted. we still have the ability to spend, as you have seen, if history is to show itself again, $100 million on anything we want to, ongoing not. it is really only the incremental value that is the nonrecurring revenue that we are defining. not only that, take the example of last year's budget going forward, we were still able to do very much in terms of making sure that we met it but was able to deal with a lot of the community concerns. i think we will still be able to address those issues. i think this is a step in the right direction. i think the definitions of nonrecurring revenues is limited in nature, so i think it is a prudent action for us to move forward. one more note on that, i think helping to do this will create a more stable budget.

something i have heard over and over again is how terrible it is to come back here-after-year without knowing if they will get their service is cut or contracts cut. i think to the extent that we can create a more stable budget, it helps to prevent those big operational swings that we see that have a huge impact. so i think this is a good step. supervisor kim: thank you. i appreciate these proposals that have come before us. i want to concur with your comments. i appreciate the controller taking the time to answer a lot of my questions are around the nonrecurring revenue policies, which is where i had the most concerns. not because it is a bad policy. it is great policy. but, you know, you never know how budgets are going to look like in the future, and you want to have the flexibility in case of emergencies. but i do appreciate having an outlook of our last 10 years as sort of a base of what we might

be able to look at in the future and i appreciate the limited nature of how we define non- recurring. we will be supporting these proposals moving forward. thank you. supervisor chu: thank you. do we have a motion on the floor to send these items forward? supervisor mirkarimi: i will make the motion. i want to underscore one of the public comments. i think the call pyeatt was important, not to go unnoticed, as long as we do retain the latitude and discretion, so that we have that ability to allocate, even when this is not a pre fixed budget. it is important to maintain the flexibility, and i absolutely appreciate that remark. so i will make a motion. supervisor chu: thank you. supervisor mirkarimi has made a motion to send items nine, 10, 11, and 12 as amended forward

with recommendations. we can do that without objection. thank you very much. are there any more items before us? >> that completes the agenda. supervisor chu: thank you so much. we are adjourned.

>> good afternoon. i have wanted to say this for some time. thank god for heroes. thank you very much. [applause] thank you for being here this afternoon to do something that is a great, great celebration for our city. last october 19, while driving her daughter to school very early in the morning, she saw a crash, a very horrible crash. she decided she would stop. she decided to take a look at what occurred. as she saw the flames and the truck overturned and noticed there was somebody in the street, she stopped her car and

got out. she did not hesitate. she went out and pulled somebody out. in danger to herself and she had no hesitation. as a result, she saved somebody's life. in fact, she saved a life of mike, who is here today. thank you. [applause] we have invited her here today, not only to praise her, but we ask that she bring her whole family. one of the things i have been thinking about, personally, we not only wanted to recognize her with our fire commissioners better here today, fire managers caught fire chiefs, police chief, and his command staff. they all know what heroes look like and feel like. they wanted to join me in this celebration.

i also wanted to tell you -- not only did she act selflessly, but there is something there where you are trying to figure out whether or not you would have done the same thing. to know that she did this by instinct almost, as reported, without concern for her own safety and saving somebody's life, i have to say that i wanted her here. i wanted her family here. a lot of times it's not that you learn this in school or friends. instinct, sometimes, is a reflection of your family. thank you very much. [applause] i know you're very proud of your

family. when instinct comes -- you look at who brought them up. i think it's a reflection of the family, the values, things they are talked. -- things they are taught. growing up, you learn things that are instinct of character. i wanted to make sure the family got the recognition here today to you are part of her heroism. it takes a family to raise somebody who has the right instincts to do what it is. thank you to mike and the royal trucking company for their support.

this is the first time you have been able to meet each other. it's a great union. it is what we in san francisco have been so proud of learning and understanding. on behalf of the city and county of san francisco, i want to present to you are signal of being a hero for us and even to our own heroes in our fire department and police department. i want to present to you, on behalf of the city, a signal for us. if i could then present to you -- [applause] this award. it is titled, "the city and county of san francisco goods american award presented to

kena williams in recognition of your heroism on december 19, 2011." "your city and your mayor is grateful for your courage and bestows this good samaritan award to you today, october 17, 2011." [applause] i present this to you, as well. >> thank you. >> we just gave something here. a new backpack with a lot of goodies in it. ok. now i would like to have the fire chief come up. >> i cannot wait to go to school. [laughter]

>> thank you very much, mr. mayeor. after we in formally acknowledged last week, a lot of people from the media came up. if i could echo what i said last week -- what you did was phenomenal. it made a huge difference. mike is with us today. i know you two will always have a special bond because of what you did last week. like i said to you, you played a special role, too. you did exactly what your mom told you to do. you state in the car so she could go out and do what she needed to do. a lot of people would not have done that. especially having your daughter in the car -- like the mayor said, you did not hesitate. it was instinctive. for that, all of us that where the uniform and have the training are in complete awe of what you did last week. at 22 years old with a 5-year- old daughter, it has got to make

you feel good. i can tell what a special bond you have got. you have got your daughter here agree you have your mother, your grandmother, your aunt, and other relatives. i know mike had a chance to talk to you yesterday prove he probably wants to say a few words, as well. i know he loves you. the media will want to talk to you, as well. people were inspired by your story. it's incredible. thank you very much, on behalf of the members of the san francisco fire department. we really appreciate it. the chief appreciate it, as well. we are tr training or the equipment. you did it. it's an honor to know you. [applause] >> in addition to our

commissioners on the fire commission and our command staff, i also want to thank the supervisor for being here, and the royal trucking company mike was working with and is working for, and their support for kena , as well. would you like to say a few words? >> of course. >> all right. >> good afternoon, everybody. in here. i am really thankful you guys are giving me -- everyone is proud of me, even people who do not even know me. i'm grateful for my family and for everybody. mike, i'm glad you're all right. that was my main concern. i really appreciate you guys so much.

i am so overwhelmed right now. i am very thankful and grateful. that is all i really have to say. [laughter] i love everybody and i love you. even if i did not know you, still came out to help you. i did not know who you were or nothing like that. in a good hearted person. i prayed the whole time i was getting you. i am glad you are standing and i am really grateful. >> thank you. >> come on up, mike. >> i am not much of a speaker. for some reason, at that particular moment, this beautiful lady decided to stop. to me, sh