how that was going? >> can you communicate with staff offline? >> i sure will. >> that would be great. anybody else? seeing nothing else, we are adjourned. [ gavel ]

>> we're ready. >> they've already done that.

all right. good afternoon, everyone welcome to the san francisco budget and finance committee for june 12th. i'll be chairing this committee and i'm joined by allocation spifrgz

and that's at the southeast water commission plant not to exceed the amount of $9 million. >> thank you very much the puc is here we're going to continue this item; is that correct. >> well we would like to have this move forward today, we need to get started as soon as possible. i'm karen from the program director department. we're in the process of trying to get this started we've had several of the roofs failed already. >> i'll tell you you what thafrs about some miscommunication between the puc and my office we'll continues this. so some point in time we'll open

it up to public comment. do we have to do that before continuing this item? >> sorry mr. city attorney. as long as you hold public comment and a close public comment before you act for a future meeting you're fine so you don't have to have public right now >> mr. clerk call item 2. we have $2.3 million no, in the grant funds from the 70 infrastructure protection program >> thank you very much supervisors. this is to request our approval to accept and expand the grant from the homeland security to

improve the system. approximately 9 hundred thousand b will be used to deploy cameras assess inaccurately control and intrusion systems and the like and the remaining 4 hundred thousand will support the according - port terminal. any questions? >> we'll open this up to public comment on item 2. seeing none, none public comment is closes. can i have a motion to move it forward >> so moved. mr. clerk call item number 3 >> item number 3 authorizing

the san francisco go department of public health to enter a med atf program. >> thank you. basically there is a long-standing contract that's been renewed every year for the last 23 years and hadn't changes a great deal of over that time. we have a drug, alcohol and treatment program. the changes this time is that with the public safety realignment of 1112 some of the terms have changed the match

money from the he medi-cal program. and this law firm taken out of this contract and this year as the state dissolves the alcohol and drug programs. any questions? >> purchas

>> item number 4. interim proposed budget and -- excuse-me. for item number 4 interim item 4 proposed all estimated expenditures for the city and county of san francisco as of may 31st and in june 2013

and fourteen. the annual budget and an proposed project for june 2015 >> please call item number 8 with this. item number 8 the controllers letter of the discretion for 2014 and 2015. >> so in terms of the agenda why don't we ask kate howard to speak on the mayors proposed budget then we'll ask our controller to speak on the budget and then ask harvey rose. i believe we have some questions for mr. rose on a report that supervisor al loss had conducted. first up ms. howard

>> good afternoon supervisors kate howard thank for having merry me here today to talk about the mayors proposed budget. the items before you the bulk of them the action items are approving the interim budgets and salary ordinance for the city. essentially those are place holder budget that allows the city to continue to operate while the board is considering the budget for the scent two years. i'll briefly present this.

so at the highest level the budget this year is growing to $7.9 billion. it's about the same in the fiscal years for the next two years. it's approximately $4 billion of that $89. billion. your overall employees is growing up to 27 in the second year but those increases are largely driven by the city to have the affordable care act. it grows if the human services i agency. as we're move forward to enroll 40 thousand people who are

currently not enrolled in medicaid. high-level this chart shows you where we spend our money every year and what's reflected in the budget. you see 33 percent in transportation and commerce. the radiator of the pie is the health department. there is public protection about fourteen percent. and this chart looks the same for both years >> supervisor wiener. >> does that include the airport and a puc. >> yes, it does and some other

departments. so it's really our four big departments >> okay. thank you. >> thank you for that question. a few highlights of what's in our budget. one of the important things that the budget includes is a really strong reserve position. the board as a whole and the mayor have been working together to make sure we have a strong reserve position. this lazy out our growth in the coming two years before by the end of the second year we'll have grown up to $200 million. we'll not likely be able to draw on a rainy day because those reserves are only available to the city when the revenues decline. the school district will be able to withdraw fray the rainy day

fund. which is why the rainy reserve continues to decline. another highlight i think is our investments in capital and infrastructure this year. >> excuse me. and a supervisor avalos. >> just a question on the previous slide the reserve and the general reserve having is there a formula we have about the size of a general reserve or is it what what we enact every year. >> it's formula driven and perhaps the controller can add. but the coming years we're growing it the policy we've adapted is to grow it two percent overall the budget. we have to get to two percent

>> and is that gunning done by the financial policies or is that a policy we enact every year new. >> supervisor avalos the specifics are in the policy itself. and see the policy itself requires that the mayor adopt a budget that continues a general recess of 2.5 percent of general revenues from the first year and equivalent to the general funds to the second year that grows to 1.75 and ultimately to the two percent >> additional we had enacted in 2010 as part of the budget policies? >> exactly the board enacted a budget policy and to create the budget reserve we're creating.

>> so returning to capital and infrastructure. this slide a walking you throw our general fund as well as our capital investment. in both of the next two years our pay as you go is funded at 92 percent of the recommended levels by the capital plan. this is a significant increase from prior years. the second column shows you that the capital investments grow to about $105 million it's the jeopardy fund is picking up the street resurfacing and it expired. the second line shows you the enterprise capital investment.

it's starred because it's understated. the enterprise departments have not brought their reports yet to the board. and then 15 other sources whether those are grant funds >> supervisor avalos. >> just the street resurfacing looking long-term we're looking at long-term it's $40 million increase this year. we're looking at how to pay for that. do we expect the general fund will be the source >> i think that's a good question supervisor. when he went through with the street and road resurfacing bond there was a sustainable fund to do the resurfacing.

right now the way we can fulfill that commitment is by getting the funds from the budget in the second year. the general fund is, of course, subject to the changes in the economic condition. and so to the degree we can find other sources are provided a more steady funding we should look at that. but the general fund will make that payment >> and so looking forward i want to talk about the v l t taking care of of the street funding. whatever comes forward this is looking at future years but do we look at gentle funds if other sources don't pan out >> i think the city has made a

commitment to the voters we need to maintain our streets at a higher level. it's hard to say what specific sources wore used as i describe but the commitment to investment invest in our streets and roads is the high priority. i think v l f is an appropriate source because of the relationship between, you know, it's a vehicle license fee cars drive open our road and paying for the infrastructure is necessary. however, there are priorities other people have about what is the appropriate match or the use of those and in particular the transportation transit process. what would be an appropriate use

of those as well as the other funds not just streets and road but mta and other infrastructure. great. not that i - i think it's important to say this if we don't see we're going to get new revenue for the streets it doesn't make sense that we make this general fund dollars and then if we have a bad year we take away the investment that were it causes a lot of deterioration but it make sense that we try to maintain the local funding. i would agree with you supervisor that's why you're seeing it in the budget this year. it's precedent for that reason and a thank you. we, introduce a resolution next week to support this.

just joking >> supervisor wiener. >> i want to commend the mayor for including the $40 million general fund support in year 2 for road resurfacing. i've asked around and no one could remember anything like that. it's always surprising to most voter that we don't consider or the city has not in the past considered this a core function in terms of one of the more basic city services. so the mayor gets a lot of credit for taking that step. in terms of long term sustainability you my view is like we may have made a mature

commitment in this building to funding 3 please academies a year and it's important we have a commitment we're not going to backslide on our roads. the vehicle license fee is one of those revenue sources where everyone, you know, makes assumption about where it's going to go but the reality even if politics sets in its going to be a fight. i think it should be completely limited to muni and road resurfacing and nothing i live. others have said it should go for health and human services. we the averts can't dedicated it. the voters are not going to back it if it doesn't going go for

transportation needs. i think we have the voter weigh in and have the reas far as i am concerned, money but we need to keep on doing with the mayor did this year >> thank you for saying that. and i think one more piece on capital which i think i've mentioned before. we've included an additional $5 million in general fund support through the mta capital and state of good repair needs. as supervisor wiener mentions this budget continues the commitment around public safety. this breaks down the number of classes that are assumed in the budget and the number of new hires that will come into the

city as the classes. 3 fire classes one deputy class and 19-1-1 class. this is making good on our commitment on the retirement over the last year's especially the fire and police officers. the fire department we've seen the reduced staffing on mandatory overtime issues. the sheriff has other issues as does 9-1-1. i.e., wanted to talk to you about the other nets. you'll have other predictions from departments but we've talked about the shortfall of

the department of public health. i wouldn't expect the department would come back to the committee if itself budget it granted unless they're a significant state or fell that change for it's on the affordable care act new positions and new investments related to that. i have mentioned there's no cuts to the behavioral support services. and finally $4 million in restoration for state hiv and aids reductions which leaves a gap >> supervisor avalos. just a question on health and human services. i haven't had a chance to look at the cuts by the way, what is

a the overall amount of the cuts and what's the impact? >> in the first year there are no direct you serve cuts to any of the mental health services. we're restructuring the health center which is essentially changing the way patience are moved into lower level of care. because their changing that out of an extra precaution. there are are other cuts which is yet to begin. we talked about this what our non-prof

non-profit partners of implementing the reductions in the health departments budget. for that reason we made a decision not to make any reductions this year while we wait to see what are the services that will be reimbursed and where are the actions of the people who are covered and not convinced. this will help us to see how it's going to be implemented >> you mentioned that public healthy won't have to come forward next year. this committee could make changes. i think there's a deserve do close some the cuts for the hiv 0 services and probably looking at the community organizations that may h