at the same time, we look at renewable generation for city facilities, renewable generation for non-city facilities, and energy efficiency conservation programs for city facilities, which is pretty much a direct general fund subsidy by taking care of lighting, hvac and other types of programs. we cut all three of those programs by a similar amount. in each case, they went from mid-$40 million to about $50 million over the next 10 years. we thought that was judicious. we still think it is. if you look at the non-power side of hetch hetchy, it is basically a flat budget over the next few years. we did not make changes because it was substantially funded through water rates. >> just a question for you, what kind of work would be done for example in the transmission distribution system line? >> we were hoping to upgrade those lines so we could take more power down from the mountains and sell it differently and make more money. we did not leave the money in to upgrade the systems for additional funds and programs in san francisco. supervisor chu: for your powerhouse line, what does the $69.4

authority; and adopting findings, including findings that the agreements are consistent with the city's general plan and eight priority policies of city planning code section 101.1, and findings under the california environmental quality act. supervisor chu: thank you very much. >> from the office of economic workforce development, we have a brief presentation for the project in front of the general public benefit for the project. land use already before the title board in planning commission for a number of public meetings, we will be brief with coverage of the general bun that. the project description that you see before the project, up to 500 hotel rooms and 550,000 square feet of retail and commercial space with 300 acres opera used for open space. community benefits include affordable housing, open space, and jobs in economic development. the land use plan is similar to the one the two were approved in 2010 with 8000 units centered around the transit hub carrying us access. public benefits include infrastructure for the island at a cost of $170 million. technology improvements to stabilize

generating event for the department. i think it will be a fantastic event for the city and generate considerable positive economic impact for the city as a whole, but our challenges with respect to america's cup will be much more, you know, logistical and operational in making sure evens go smoothly on our sites and in our facilities, but that is something we obviously continue to think about. somebody really wants us to sell rec adn pa -- rec and park- branded merchandise. people actually look really like the best spirit of a today may be too hot to wear. we are evaluating all their ideas. we take them seriously, and we're grateful for the feedback. we know that every dollar we earn in this budget climate is a dollar we do not have to cut. i'm going to turn it over to our director of finance and administration to begin next part of our over you and get into the nuts and bolts of our budget presentation. then i will conclude. >> good afternoon, supervisors. i'm just going to start with a quick overview of our revenue and expenditure budget and then talk about the solutions we have proposed to the mayor's office for the 2

general fund spending. that is a real challenge for the city, and that is why we are here tonight. as i said, the biggest departments in our general fund and, therefore, those that are facing some very serious challenges, our core public safety and social safety departments, the police apartment, sheriff's department, and fire department. health department and human services agency are our core county functions. those five departments together are about 3/4 of our discretionary general fund city in the city. we have asked the departments to make expenditure reductions or increase revenues totaling 10% and another 10% contingency. none of us or none of the department heads here on the stage are enjoying this process, but those are the instructions that we have had to issue to meet this challenge. we are trying to do it in every way possible to minimize the impact on services to residents as we do that, but it is a big challenge, so we are really hoping to hear your thoughts and feedback on how we can do that and on the proposals that are out there tonight. just one last point, to emp

for us it is time for the economy, revenue closely tied to how well the city is doing in general and what they are doing to seek new permits for businesses. in the current budget when revenue comes in under what was projected we have been able to mitigate your and shortfalls by reducing expenses. certainly we would take a similar approach to face with a same challenge in the future. i hope the two will support the board proposed budget for next year. supervisor chu: thank you very much. i know that this item does not have a budget analyst report. on this item, the board of appeals, there is no report? >> correct. we consulted with your office on the budgets that we would do and not do. i think that the two budgets are the two today that we decided not to do. supervisor chu: thank you. for reference to members, the budget is on page 25 and 26. it generally looks like a pretty flat budget that is completely covered by filing fees and permit appeals surcharges. generally it is funded neutral. just a quick question for the comptroller's office or the budget office curia on the overhead's

a revenue source, but would like to start aggressively marketing the dark fiber that the city helms, generating revenue for the city, working with other companies that are at that -- interested in attempting to market that capability, making the city some money and offsetting the deficit in the general fund. i know that that was brief. i cannot think that you need me to be the slide for you. what we are asking today, i know that in the last conversation my feeling was that she wanted to be sure that we got the message that we needed to be smarter about how we were doing i t. so the to feel like we were making progress in that area. if you need specific discussion answers, we are happy to enter at this time. i would -- supervisor mirkarimi: -- supervisor chu: i would like to turn it over to supervisor chiu. supervisor chiu: i do support the release of these reserves today, although it is not with overwhelming excitement. last year these amounts were placed in reserve in order to live the incentivize departments to find savings. i am glad that we went through this significant exercise of moving f

this is a generous city. it is a compassionate city. and yet, we have a lot of people suffering. as a parent, i feel privileged to live in this district. i think some energy and intelligence and creativity needs to be applied to the problem of how do we ask those of us who have more, especially those who are in the forbes 400 list, billionaires'. and when i mainly here is about tax cuts for entities. when it is appropriate, sure, give a tax break. it is also inappropriate time to ask those who have the means to -- it is also an appropriate time to ask those who have the means to share. we want the city to look good. we wanted to be a fun city to live then. it takes money for us, and it takes money for everybody who lives in the city. not just those of us in district two.

this is a generous city. it is a compassionate city. and yet, we have a lot of people suffering. as a parent, i feel privileged to live in this district. i think some energy and intelligence and creativity needs to be applied to the problem of how do we ask those of us who have more, especially those who are in the forbes 400 list, billionaires'. and when i mainly here is about tax cuts for entities. when it is appropriate, sure, give a tax break. it is also inappropriate time to ask those who have the means to -- it is also an appropriate time to ask those who have the means to share. we want the city to look good. we wanted to be a fun city to live then. it takes money for us, and it takes money for everybody who lives in the city. not just those of us in district two. i would ask for those on the budget could talk more about the need and what we could do. if the mayor would make a commitment to study this problem, and how can we get more resources applied so that budgets -- the budgets of all of the department are not so impacted? >> i'll try. it's a great question, a huge que

for the next generation.i their lifestyles, hoping to keep the environment clean for the next generation. city dwellers are also taking the issue into their own hands. many people in tokyo took part in a demonstration for the first time in their lives. this is a rather unusual concept in japan. but the islanders are thinking that they can take on big corporations and even the government. why do they believe that? >> they only 500 people. and average age is 97. or 79. so they are quite old. and small people. but they are fighting because really they want to live with beautiful sea. and harmony with nature. and such small people can do big work. and it's their right to say no to government and big company. and the people respect it. so before crisis, fukushima crisis, people watched my film, and oh, wow, they are so strong. amazing. but now they say, oh, such a wonderful, so really i think audience feeling of audience has been changed. >> when we think of applying that approach of the island to the entire nation, it unfortunately seems a little unrealistic. but what do you say to that? >> yeah.

this would translate to $900,000 annually to the coffers of the city for the general fund. looking at the overall benefits of the project, it will enhance the city's reputation as a tourist destination and increased maritime command. recently, the princess cruise lines combined with [unintelligible] to invest in the dry dock facility. cruise ships will be repaired and maintained in san francisco for crews calls, not only for dry docking. each cruise call at the port would generate significant work for members of the international longshoremen, truck drivers, supply companies and service providers, literally thousands of hours of skilled union jobs utilizing different maritime trades. the project will also continue with no. waterfront improvements, which are quite noticeable. serving as a lasting legacy for the america's cup. in conclusion, constructing this terminal is long overdue, two decades in the making. we will construct the project in coordination with the 34th america's cup and there will be considerable benefits of this project. clearly there is an estimated shortfa

you have the broader economic general environment in our city. >> that is correct. supervisor chu: thank you, supervisor farrell. i will open these items up for public comment. other members of the public that would like to speak? >> i appreciate the actions of supervisor farrell and supervisor mirkarimi. we urge you to eventually pass them both for signature. san francisco needs to recognize that while the city is growing, our job base is declining. that put san francisco at around 770,000 people. and about 600,000 jobs occupied by residents and non-residence. the census just released so the seventh it is with a record population of 805,000 people. we know in tracking jobs over the last 10 years, after the recession of the early 2000's, our job count went down to 510,000. probably 570,000 before this recession, and we're probably at the 520 or 510,000 level again. natalie get back to the people that worked in this city 10 or 11 years ago? you do it by recognizing that job growth is not going to happen in the government sector any time soon in the state, federal, or

the general fund is the part of the city budget that comes from our tax dollars, property taxes, sales taxes, business taxes, and it pays for a lot of services we need to provide that do not generate their own revenue. it pays for the services of a lot of the department's sitting here. -- a lot of the departments sitting here. on the non-general fund side, we have apartments that bring in their own revenues, and a lot of those are facing financial challenges as well, but they have their own budgets to balance outside of the general fund. mta is an example of one of those departments. about $3 billion of our $6.5 billion budget is in the general fund. $300 million deficit starts to sound a little bit bigger. even within that $3 billion of general fund, we have a lot of restrictions on what options are available to us. we are legally obligated to pay our pension and benefit costs. we have voter-approved requirements that under the charter require us to spend a certain amount of money on particular types of services, and all those various requirements eat away at our flexibility within th

the public-private sector discussions with regard to the best approach while maintaining the city's general fund. in this context, in direct response to the recommendations, with regard to what is the best approach in advancing considerations for stock-option exemption, i introduce legislation that is aimed at keeping the pre-ipo companies in san francisco. it features a limited stock options tax incentive. these companies undertake a public stock offerings while in san francisco. it is a time frame that they can be renewed. a requirement that companies pay that least $750,000 in stock- option is the story -- but before receiving the exemption. and a study to determine the tax exemption's economic impact, including the effect on retaining companies in the general fund. the company in the history would have been eligible for the tax exemption of a proposed. they all paid less in stock compensation taxes. the company would have to issue more to be eligible for my exclusion. there are very few companies located that are expected to come anywhere close to that figure in the next six years. acco

general obligation bonds, which is what we are proposing here. outside of the state of california, almost everybody uses street improvements for obligation bonds. seven of the foulargest cities n the country all views general obligation bonds for street resurfacing. the three cities on that list are all in california. los angeles, san diego, and san jose. the reason these california cities are not using go bonds is not of they are not and of corporate capital expense, but because there is a higher voter threshold in california and then there is an oscar in the country. it is very difficult in california to get general obligation bonds passed for anything. until the state voters change the threshold for schools, school bonds across the state were failing to get two-thirds vote. the constitution was amended to allow those bonds to be approved with 55% voter support. so almost everywhere we look, this is a common way to fund our capital assets that do have a long life. and we will continue to talk about how the capital plan, that the board of supervisors adopted, talks about what capital assets are and segregates those things from those things in the city operating budget. thes

they said we're doing, what happens is when you do the ceqa modeling, per the city's standards, the number of auto trips generated doesn't come down. conversely if you add more parking, it doesn't go up. so what happened was the parkmoore developer, because also in the city's transportation code, they tend to favor automobile level of service over bicycle or pedestrian or other form of access. what the developer was required to do through ceqa as a mitigation is to widen 19th avenue. by one lane. which is ridiculous. the developer doesn't want to do it. it's terrible policy. it presents a barrier to pedestrians moving through the site. if the developer manages to keep their transportation and we said you should take that out as a mitigation, you have to do it. maybe we just say you do all the transportation management stuff you can do. if you reach a congestion threshold then you have to do it. if you don't hit that threshold ever, and manage the concon

to the rural side of the volgograd region and then consult with the stops to get the new generation out of the city and into the fields. up next a modern engines takes on a tour of some headline grabbing contemporary art in the russian capital. it's. hello and welcome to the program on this week's arts and culture show will be taking a look at russian contemporary art galleries constantly opening up in the capital such modern day creativity has exploded onto the country's scene i was south of here one of the most famous innovative art spaces in the capital carriage house in a wonderful example of twentieth century russian architecture it's set in the former first arose founded by there is a cover signally kongs tanaka garage presents approve of exhibitions by international and christian artists and serves as a catalyst a meeting point a mosque is emerging casi one of the kindest places calls me your community split into three main themes street punk rock configuration and you have strachan south coast guard health concern because in russia. we have a big program which goes parallel with each exhibi

side of the polgar grad region where locals are pulling out all the stops to get the new generation out of the city and into the fields. up next martin andrews takes you wanted to the headline grabbing contemporary art in the russian capital coming your way. hello and welcome to the program and this week's arts and culture show will be taking a look at russian contemporary art galleries constantly opening up in the capital such modern day creativity has exploded onto the country's art scene and we started here at one of the most famous innovative art spaces in the capital carriage house in a wonderful example of twentieth century russian architecture it's still a form of. sound advice there is looking for certainly going to town that presents a prism of exhibitions by international and christian artists and serves as a catalyst a meeting point for moscow's immersion policy one of the current displays is called new york new it's split into three main themes st patrick's configuration and you have strachan so how does god's health concern because in russia there's such a god we have a big program whi

not be needed at the airport and would return to san francisco city proper in one of our district stations or centralized stations, the general fund would begin to start picking up that expense. correct? >> that's exactly right. and periodically the f.a.a. sends in auditors that came in about six, seven years ago, and endures some expenses that the city general fund had to reimburse the airport for certain police expenses where we hadn't accounted for it properly. so we have to be very careful about that. chairwoman chu: and i guess to the mayor's budget office. if your budget, i believe even though it has not yet been proposed there's not really a plan for additional academy classes. but is there anything budgeted for taking back any officers from the airport? i know that would cost general fund dollars. >> chair chu, i'll have to take another look at the numbers. but there's not a proposal to pro actively move officers back from the airport on to the streets. as john martin said, they usually give us an anticipated staffing level that's required to make the airport operate and be safe. and we allocate the number of officers

in our report, we recommended that the city take a look at a more general modification of the payroll tax out of awareness of the fact the central market tax exclusion solved a problem for twitter, but there were other companies out there that faced a similar issue and there likely will be in the future. and that recommendation was the genesis for this legislation. what i've done here is i should say from the outset is for supervisor mirkarimi's legislation that we have reported on and for supervisor farrell's legislation that we will report on, we do not have detailed information on what companies have paid in the way of payroll tax on stock options. the city does not require businesses to say here's your compensation, tell us your compensation for wages and salaries and then tell us your compensation for stock options. it's all one lump of compensation and it's all taxed at the same 1 1/2%. so consequently, we do not have records of what businesses have paid for in the way of tax on stock options. so what i have done here on this chart is basically, this is the simulation model of a