you're interested in clear cutting. >> thank you very much. the last three speaker cards. jane risk, anita bowman and chelsea parrish. >> hello, supervisors. how are y'all doing today? apparently we're going to continue this over to next week so i'll make this short. i'll try to come back next week. really the bond is good. through the con semmings i've been around it. it's been something i've personally taken that needs to get done because our park system needs us to move forward. this is about access to our parks and getting our parks fixed where they need to be done. it's something very important. if anything, the board needs to pass this just to get it on the ballot and let the voters have their choice to decide, which hope lifully the voters will decide for it. it just needs to be there. that's all i can say to you guys. i can't say anything more than

that. >> thank you. next speaker. >> my name is jane risk and my family -- family has lived on moublet davidson since 1972. we walk on the trails through the forest all the time. even though we've been living on mount davidson, our community has never been informed until very recently about the natural areas program and their plans. i gave each of you a copy of the natural areas program map. on which we lined in red the areas that are designated for cutting so you can see that the entire heart of the mountain is supposed to be cut and the trees will not be replaced with other trees. if you look at the very small print you can see those trees

are going to be replaced with native grasses and shrubs and we strongly object to that. we also are sierra club national outings leaders and we've been working with ken hoger, who is the hiking leader for all sierra club local hikes or has been and we have the support of many sierra club members who agree with us that the trees on mount davidson should not be cut in order to replace them with grass and scrub. thank you. >> thank you very much. next speaker? and there are two speaker cards. anyone else who hasn't spoken and wants to speak, please feel free and line up. jim thinker stop and carolyn johnston. >> good afternoon. i'd like to start by thanking the supervisors today for their leadership and vision as well

as recon park for their community outreach. my name is cell chicago -- chelsea parrish. i'm with the trust republic land. it works to con serve land for people and create parks across america. i support the parks bond because it is necessary to maintain san francisco parks in order to fulfill open space needs for the residents. the state of disrare that many of the parks fall into is a testament to their heavy use. restoration is required for the continued quality for both san francisco residents and visitors. thank you. >> thank you. thanks for coming. next speaker. >> i have some slides. >> i'm a frequent user of the

natural area, mcglarne, glenn canyon, sharp park, spring grove. and i just want to talk about why it's so important to address the national areas program as part of looking at the bond. the 2004 assessment showed that people used the walking trails and biking trails as the most used facility and the most important to them. as well as when you look at what the voters or the residents have said is the most important thing for improving in the parks, that's the walking trails and being able to visit nature, which is just exactly the opposite of what the natural area program is doing. so if you actually -- so there's another slide. so if you actually go to the natural areas, basically we've taken 24% of our park land, which is basically everything other than golden gate park, the golf courses and like the soccer fields. almost everything else has been

designated to the natural areas program, and basically those places where they talked about kids playing, instead of being that it's an important habitat that everyone has to stay on the trail. the trails are being closed. you're getting fences put up. it's executed from proposition c for the maintenance standard. turns you see the pesticide signs, which is not inviting for visiting nature. then to add insult to injury, you have a 2008 bond which was supposed to be about restoring trails. when you look at the plans, almost all of the money that has been used nor that program, which, by the way, has to be used in the natural areas program, was for deconditioning the trails. i just think it's really important because these programs are important for people to put that language for the natural areas program. >> thank you. next speaker? >> i'm representing chinatown

community development center and also representing the committee for better park and rec in chinatown. i urge you to move forward the bond ordinance. we are very excited in our district three. the jody imagineo playground and those are included in this bond. it is the most crowded area in the city. i'd love to talk about trees but unfortunately ill be happy if we get a piece of open space. the playground in the heart of chinatown is often overused. but improving, renovating joe dimaggio and chinese playground will be of great benefit to the chinatown community and i also want to acknowledge the bond and recon park statue and are leading a very con ten shouse

but interesting and productive bond process, both in the community and also throughout those meetings. it is not easy getting to where we're at at this point. we have something that should be a legacy project, if it will be before the voters in november and get passed. i think in five years' time, as we have seen now, looking back from the 2008 bond, we have a lot of legacy that we've created because of the trails and bond. so thank you. >> thank you very much. next speaker. >> hi, my name is elisabeth my meek -- di meeko and i'm a resident of she wood forest, mount davidson and i think i speak for my fellow neighbors when i say the big attraction to us owning a home in that area is the forest. it's where we walk our dogs, children -- from where we sit,

it seems to be a misguided initiative. i don't understand why money would be spent to remove trees when there are places like mcclaren park which desperately need those funds. i don't understand the native thing because there are palm trees lining market street which aren't native. the trees on mount davidson, they hold moisture, which addresses the water conservation issue, it enriches the ground, provides wind protection. there hasn't been any research done demonstrating that any of those trees are dangerous or that there's any benefit to getting rid of them other than returning it to its native state. we're against it, all the people on robin hood drive. that's it. >> any other members wishing to speak on this item? seeing none, public comment is

closed. colleagues? supervisor elsbernd:? >> i would like to say a few things. i think it's important to respond to some of the things we've heard in public comment. no pun intended but to the folks who are frankly threatening this bond over less than 2% of the total bond, i think you are losing sight of the forest through the trees. i absolutely hear the disagreement, i hear the frustration. i hear the anger and disappointment about natural areas. natural areas has not been approved. there is an e.i.r. coming. there is a public process on approving that program. to put a gun to the head of this program over something that amounts to less than 2% of the total bond ask -- is -- that's one of the most significant threats i've seen in the 12 years i've worked here at city hall. and to the folks in glenn park

who are here. glenn park is going to get $12 million for its rec center. i spent a lot of time in glenn park. that park needs it badly and i've heard from more people in that neighborhood who desperately want to see their park taken care of that are concerned about there. to the folks in miraloma park, you all know i've lived this. -- there. born and raised there. both of those playgrounds where prime candidates for the $15 million pot for di lap at a time dad -- dilapidated playgrounds. to think we would deprive the tens of thousands of citizens from those redone playgrounds other something that amounts to 2% of this bond when you have so many opportunities to express your frustration and to make change to the program

really blows my mind. that said, i'm happy to work with supervisor weiner to try to find language to amend this. there is a part of me that wants to call your bluff because i think this is so bogus, but this is the process and i'm more than happy to work with you on this, but to let less than 2% of a bond stop it from going forward is one of the boldest things i've ever seen. >> ok. thank you, supervisor else bern. excuse me. public -- else bernlt. public comment is closed for right now. we were talking about holding a special meeting next thursday. so c0u8d i entertain a motion to continue this item to a special meeting to be held on the 21st? >> i'll make that motion. >> and we can take that motion

without objection. so moved. madam clerk, are there any other items? >> no, there are no further matters. >> ok, thank you. meeting is adjourned.

captioned by the national captioning institute --www.ncicap.org-- supervisor chu: a lowe, of welcome to the expanded budget committee. -- hello, welcome to the expanded budget committee. are there any announcements? >> please silence all cell phones and electronic devices. include documents as submitted to the clerk. ockham to drink it -->> -- supeu very much. mr. young, would you call items one through three? >> item number one. interim proposed budget and annual appropriation ordinance appropriating all estimated receipts and all

estimated expenditures for departments of the city and county of san francisco as of may 1, 2012, for the fys ending june 30, 2013, and june 30, 2014. item number two. interim annual salary ordinance enumerating positions in the annual budget and appropriation ordinance for the fys ending june 30, 2013, and june 30, 2014, continuing, creating or establishing these positions; enumerating and including therein all positions created by charter or state law for which appointments thereto; specifyingcompensations and work schedulespositions and fixing compensations therefore. item #3. resolution approving the interim budget of the treasure island development authority for fy2012-2013 and fy2013-2014. supervisor chu: thank you very much. pour the next two weeks, and we will be deliberating on these house cleaning items. items one through three. again, these are basically the authorization, the ability for the city to continue

authorization during the process carried over the budget for the month of july as we continue forward. generally, there are not too many changes in these items. again, it just allows for the city to continue functioning during the month of july. why not open this item up to mr. rose or the budget office if he would like to say anything. >> madam chair, be only thing i would add besides that which you have already stated is on page 2 of our report. there are exceptions to the interim budget. in this case and the mayor's office is requesting 162 new positions, full-time equivalent. as you know, if those are approved, they would start on july 1 rather than august or september.

so, we will be reviewing these positions in the ensuing two weeks on a department by department basis, making recommendations there. secondly, we point out that regarding the hotel tax allocation, the steinhardt aquarium does not get an application, but that is not shown in the administrative code. the recommendation on page 5 of the report, except for the exceptions to the interim budget, which include the hiring of 162 new positions as of july 1, 2012, positions that i stated we will analyze and make recommendations on in the next two weeks, we recommend that you do approve the ordinance, the 12-13-14 annual salary

ordinance and 12-13-14 honoraria authority budget, and that you amend the business of the tax regulations code to include the annual tax allocation to the annual aquarium, which would be consistent with previous border supervisors policy. supervisor chu: thank you very much to the budget office. is there any item that you would like to speak to? >> good morning, supervisors. in the mayor's budget director. i will be presenting to you in a few moments and more thorough overview of what is in the mayor's proposed budget and how we appreciate the work of mr. rose's office. his approach at this time is appropriate. thank you. supervisor chu: thank you very

much. let's open these items up for public comment. are there members of the public that wish to speak on items one, too, or three? seeing no members of the public, public comment on these items is closed. a question to the city attorney. with regards to the budget analysts recommendation on business tax code, that item is not before us. it may simply need the administration code? >> i think that the budget analyst is referring to provisions in the budget. then correct, the tax code is not before you. >> if we were to make an amendment on the budget analyst separating it, you would have to

introduce that item? >> correct. supervisor chu: given that the item is not before us, i would suggest that we cannot make an amendment at this moment. the budget analyst report recommends that we move forward with these items and that exemptions to the authority will be coming before us department by department. do we have a motion to send these items forward to the full board of supervisors for this coming tuesday? without a motion, can we keep that without objection? kept without objection. thank you very much. please call items four through 12. >> item #4. hearing to include financial update and information on budget instructions and process for fy2012-2013. item #5. proposed budget and annual appropriation ordinance appropriating all estimated receipts and all estimated expenditures for departments of the city and county of san francisco as of may 1, 2012, for the fys ending june 30, 2013,

and june 30, 2014. item no. 6. annual salary ordinance enumerating positions in the annual budget and appropriation ordinance for the fys ending june 30, 2013, and june 30, 2014, continuing, creating or establishing these positions; enumerating and including therein all positions created by charter or state law for which compensations are paid from city and county funds and appropriated in the annual appropriation ordinance; authorizing appointments or continuation of appointments thereto; specifying and fixing the compensations and work schedules thereof; and authorizing appointments to temporary positions and fixing compensations therefore. item #7. resolution approving the budget of the treasure island development authority for fy2012-2013 and fy2013-2014. item #8. resolution concurring with the controller's certification that services previously approved can be performed by private contractor for a lower cost than similar work performed by city and county employees. item #9. resolution concurring with the controller's certification that services previously approved can be performed by private contractor for a lower cost than similar work performed by city and county employees, for the following service: custodial services.

item number 10. resolution approving expenditures from the budget savings incentive fund for one- time purposes in fys 2012-2013 and 2013-2014. item number 11. resolution concurring with the controller's establishment of the consumer price index for 2012, and adjusting the access line tax by the same rate. item number 12. ordinance amending the san francisco administrative code section 2a.22.1 to revise and increase the fees charged to city administered or city funded construction projects for plan review and site inspection by the mayor's office on disability for compliance with federal disability access laws; and making environmental findings and findings of consistency with the general plan.

supervisor chu: thank you very much for reading all of those items. to the members of the public, a quick announcement, items four through 12 deal with the upcoming budget and the budget thereafter for the city and county of san francisco. most of these items will be continued until different dates, because we have to wait for public comment. if you want to speak on these items, we will not want -- we will not be taking public comment on the budget today. we will be consolidating all of the budget to be heard on friday. of course, you are welcome to stay and listen to the proceedings, but the bill not be taken public comment today. the bill be -- but we will not be taking a public comment today. we will be taking public comment on friday.

because it is so lengthy, we will be taking a break at noon. a quick announcement, we will be taking a break at noon. with that, we will head right into the budget deliberations. on item number four, it is generally the ability for the budget office to provide a quick update for us. i would like the comptroller's office to present on the revenue late -- letter. could ms. howard please give a brief introduction to the budget? if we can, right after your brief introduction, we might go right into the revenue letter. after that, we will come back for a quick overview on redevelopment agency, given that the overview will have bits and pieces of the reconfiguration within.

>> thank you. happy to be with you this morning to talk about and provide an overview to you of our first ever two year budget. so, if i could have the overhead, victor? i would briefly walk through what is happening in fiscal 12, 13, and 14, talked a bit about what is driving the growth. share some highlights of our budget with you. and then talk a bit about how we balance. so, at the highest level, our fiscal 1213 budget is for the whole city $7 billion, of which $3.5 billion is in the general

fund. the number of employees in the city is willing to 26,878. we came to agreement with our labor unions and from the general pattern in the first year, the furlough day that had previously been agreed to expired. that was worth about 4.62% of wage. that did contribute significantly to our costs going up. this side is showing you buy service area how we are proposing to spend the city's money this year. you can see a significant amount in public transportation and commerce. public health, 19%. in fiscal 14, the budget grows slightly from the proposed

budget to 7.5 $5 billion, with a general fund up to -- up to $3.6 billion. we offer a couple of other hundred positions growing into 50,000. in the second year, the general pattern was 1.75% increase. reflecting changes in the employee participation only health care. that would increase annual access to 3% in the second year. this slide shows you, again, what is happening by service area in the proposed budget. not significantly different than the prior period i have been asked a number of times about why our budget is growing. i think that there are a few

main drivers i would want to point out to you. the first, as i mentioned a moment ago, is that employee wage costs are increasing due to expiration of furlough days. as well as the increasing costs of our health and pension benefits. secondly, the city is absorbing the entire budget of the redevelopment agency into our own budget. you will see that the majority of the increase, as well as some of the increase in the mayor's budget office, is due to that absorption of that function. we are also increasing the costs related to capital services, related to the implementation of federal health care reform, and other growth in the enterprise apartment. notably the puc and airport.

in general, the city's proposed two year budget has service reductions, which i think you are aware of. it also includes public safety hiring for police and fire. the police department in one class with the fire department in each year, we include the quota for nonprofit organizations in this city, as well as the $95 million in general fund capital for the next few years. i would like to point out that our reserve position is strong and improving in this budget. our general reserve, which has historically been $25 million, annually rose to 32 million in this budget. in the first year of the budget we have included a state reserve and in the second year we have not included that

allowance. finally, the budget stabilization reserve, similar to the rainy day reserve in terms of when it is available, is also growing. up to $45 million in the first year. now, to provide a brief overview to you about how we balance the city's budget this year and next. as you will recall, the joint report projected $170 million a shortfall. subsequently, there were some additional costs that were not assumed. things like a loss of certain public health revenues, which increased the deficit that we were balancing around. on the solution side, this first chart shows you the revenue and fund balance solutions we have included.