walton walton and i chair chan i chan, i. we have five eyes. thank you. and the motion passes. what are you going. to add? and with that, so , supervisor, would you like to move item six and seven to the next? actually, seven doesn't have to, like, move six and seven to full board to actually. sorry, the six has to be continued. yes i'll make a motion to continue. item six to the next budget and finance. budget and appropriations meeting. second and roll call on that one. yes. on that motion to continue the ordinance as item number six to the next meeting of this committee, seconded by sorry, offered by member and seconded by chair chan. how vice chair gentlemen, i gentlemen, i remember. i i remember running. i ronan. i remember walton. walton i chair chan hi chan i we have five eyes. thank you. the motion passes and supervisor ronan, would you like to move item 7 to 4 board recommendation ? yes. but before i do that, i'd like to. i'd like to duplicate the file and expenditure plan. it's just. sorry we're not yet. i haven't called that one yet. all good. totally confused. we put you to a lot of. i would like to move item seven to the full board with positive recommendation. second and roll call please. and on that motion to forward the ordinance in item number seven to the to the july 11th full board with a positive recommendation moved by member owned and seconded by chair chan , vice chairman middleman. i remember i, i remember on and i ron and i member walton walton i church and i chan i we have five eyes. thank you. and the motion passes and next mr. clerk, could you please call item number five? yes madam chair. give me one second. item number five is an ordinance amending the business and tax regulations code

walton and roll call on on the motion, please. on that motion to forward this ordinance to the july 11th full board with the positive recommendation seconded by member walton as amended, vice chairman. middleton i remember i staff i remember running heroin and i remember walton walton. i chair chan, i chan. we have five eyes. thank you. and the motion passes and with that, thank you. and we'll go to the next public work and public works. we also would like to call item number five. yes item number five is a resolution approving the list of projects to be funded by fiscal year 2023 to 2024. road maintenance and rehabilitation account of funds as established by california senate bill one, the road repair and accountability act of 2017. madam chair, thank you. and director short, how are you? thank you for being here. good morning, chair chan supervisors . carla short, interim director, san francisco public works. i am pleased to say that we have reached an agreement with the budget and legislative analysts for the proposed cuts. but there is one item that we the policy recommendation we disagree with just a few notes about that we are proposing. to tax a park area supervisor, which is a 3464 position. this is already a management position on and we are the onl

walton and roll call on on the motion, please. on that motion to forward this ordinance to the july 11th full board with the positive recommendation seconded by member walton as amended, vice chairman. middleton i remember i staff i remember running heroin and i remember walton walton. i chair chan, i chan. we have five eyes. thank you. and the motion passes and with that, thank you. and we'll go to the next public work and public works. we also would like to call item number five. yes item number five is a resolution approving the list of projects to be funded by fiscal year 2023 to 2024. road maintenance and rehabilitation account of funds as established by california senate bill one, the road repair and accountability act of 2017. madam chair, thank you. and director short, how are you? thank you for being here. good morning, chair chan supervisors . carla short, interim director, san francisco public works. i am pleased to say that we have reached an agreement with the budget and legislative analysts for the proposed cuts. but there is one item that we the policy recommendation we disagree with just a few notes about that we are proposing. to tax a park area supervisor, which is a 3464 position. this is already a management position on and we are the onl

walton walton. i chair chan, i chan i, we have five eyes. thank you. the motion passes and i believe we need to because it was more than 12 hours. we need the motion to go on recess. we the motion is to recess this meeting until 10 a.m. tomorrow. friday. june 23rd, second by vice chairman coleman and with that, a roll call, please. and on that motion to recess, this this meeting until tomorrow's meeting of this committee, june 23rd, seconded by vice chair madam vice chair. gentlemen, gentlemen. i member. staff member, staff. i remember running. wrote and i remember walton walton. i chair chan i chan i. we have five eyes. thank you. the motion passes and colleagues. now we're officially recessed until tomorrow morning 10 a.m. . >> thank you, everyone. um, for 32nd we're to grateful you've joined us more to historic mentally ill and in disability and affordable housing i'm already crying and we've not started yet (laughter) today it groundbreaking the kelsey civic center can i get another rounding. >> (clapping). >> wow. >> my name is ali and i used the pronounce and really proud to lead our policy work at the kelsey before we continue with today's program i'd like to share the beginning the development process for the kelsey civic center we reached out to um, the association of the racism who joined us before we moved in the construction we got to work with them to develop a development i'll share with you today. we recognize the kelsey civic center is on the tribal homeland of ramaytush ohlone people and who are the okay. people the san francisco. we h

walton walton. i chair chan and i we have five eyes. thank you. and i would like to make the motion to continue to next week. and second by vice chairman delman and roll call, please. and on that motion to continue this ordinance to the june 21st meeting of this committee as amended, vice chairman allman gentlemen, i member. so i remember ronan. running i remember walton walton. i church and we have five days. thank you. the motion passes and the next city department is, um building inspection. thank you. uh and while we have a building inspection also want to call item number 15, but i from what i understand that item. 15 has not been adjudicated by the building inspection commission and therefore we cannot take on. i just want to mention that it is on the agenda. so technically , do we do we call the item and then? uh just not having the presentation and discussion and called to public commons or help. how do we want to how did he get on the agenda if it wasn't hurt at the commission? because walter through the chair to how members suffer, uh as part of the mineral budget. this did require a fiat and not knowing that the building and special commission only meets on the every third of this month wasn't entirely sure whether or not they were able to hear it and at a commission meeting they are scheduled to do that on june 21st and however, seized ass

walton. walton i church and i we have five days. thank you. the motion passes and with that i would like to make the motion to move item 9, 10, 12 and 13 to full bore with recommendation and. second by supervisor ronan and with that would like to move that to full bore with rock. oh, my apologies. i know what he's about to say. we need to make the amendment to item number 92 , according to the budget and legislative analyst recommendation to correct to over $20,000 even even better, madam chair i believe i believe these are both hearings on the administrative provisions, which are actually technically in the appropriation ordinance, so you will make the bellas recommended amendment here. later when you have the full a up in your acting on it, so this is just a call out the administrative positions so you can see them, but you'll be at you'll be making this amendment on another item another day. we will. we will track it for you. if that makes sense. yes and does that mean i can still mode like move them to football recommendation. because i'm not amending the item, though. deputy city attorney and pearson. the item actually is a hearing on the provisions. um and so you can close the hearing and because they are a component of the larger ordinance. you can make that change later. we're just trying to get through the agenda, man. ah, so i'm gonna make the motion to file item nine and 10 hearing heard and filed second by vice chairman delman and roll call on death on the item nine and 10 on that motion that the hearings as items nine and 10 are to be seconded by vice chair mandolin that those hearings are to be heard and filed. vice chairman. gentlemen, i remember stuff i suffer. remember on it. run and i remember walton walton, i chair champ and i we have five ice. thank you. the motion passes and then i would like to make the motion to move items 12 and 13 to full bar recommendation. second by vice chairman delman and roll call, please on that motion, seconded by vice chair madeline. that the items. that the resolution and the ordinance an item 12 and 13 , and before it did to the july 11th meeting of the full board of the positive recommendation, vice chair mental men, gentlemen, i member stuff i suffer. you remember running running. i remember walton. walton. i chair chan chan, i we have five eyes. thank you. the motion passes and, uh, next, uh , department is our general city responsibility. general city responsibility. oh, michelle. i think it's. for you right, like wait, who is presenting sorry, miss. alerts, mma yes, very much. thank you very much. chair chan. michelle always smith from the comptroller's office. we manage this kind of non department. mm. in many of the divisions across our dep

stephanie i supervisor walton. walton i supervisor chan. chan eyes supervisor dorsey. dorsey i supervisor and cardio. and cardio eyes. supervisor man delman. gentlemen i supervisor melgaard eyes supervisor peskin . i can i and supervisor preston preston, i. there are 11 eyes. those resolutions are adopted in motions approved. madam clerk. could you please read item 59? yes item. 59 this is a resolution to commend nancy werfel for her exemplary advocacy and stewardship in promoting preservation and conservation efforts in the city and county of san francisco to recognize her significant contributions to historic preservation, environmental protection and neighborhood based planning. and to express gratitude for her dedicated service to the citizens of san francisco. thank you, madam clerk. in addition to recognizing the extraordinary works of nancy werfel, i wanted to acknowledge her friends who took it upon themselves to put my office up to singing her praises and her history which in my case started 22 years ago. where in she was, uh, in essence , my secret weapon as

stephanie i supervisor walton. walton i supervisor chan. chan eyes supervisor dorsey. dorsey i supervisor and cardio. and cardio eyes. supervisor man delman. gentlemen i supervisor melgaard eyes supervisor peskin . i can i and supervisor preston preston, i. there are 11 eyes. those resolutions are adopted in motions approved. madam clerk. could you please read item 59? yes item. 59 this is a resolution to commend nancy werfel for her exemplary advocacy and stewardship in promoting preservation and conservation efforts in the city and county of san francisco to recognize her significant contributions to historic preservation, environmental protection and neighborhood based planning. and to express gratitude for her dedicated service to the citizens of san francisco. thank you, madam clerk. in addition to recognizing the extraordinary works of nancy werfel, i wanted to acknowledge her friends who took it upon themselves to put my office up to singing her praises and her history which in my case started 22 years ago. where in she was, uh, in essence , my secret weapon as

no supervisor walton. walton i. supervisor chan chan i supervisor dorsey. dorsey. no. supervisor and gaudio and gaudio. no supervisor randleman mandolin and i supervisor melgar melgar i supervisor peskin peskin i supervisor preston preston i and supervisor ronan ronan i there are seven eyes and four nose with supervisor sapphire stephanie dorsey and in guardian voting no, the motions are are approved. madam clerk, i believe that items. 42 through 45 are no longer before us. yes mr. president. we will state in the minutes tabled by operation of law. okay. could you please read items 46 through 49 together? items 46 through 49 comprise the second special order for a public hearing of persons interested in the approval of a conditional use authorization for a proposed project at 3832 18th street to allow approval of an individually requested state density bonus project and to invoke waivers from the development standards for the rear yard dwelling unit exposure in the height limit that would construct a new six story 60 foot tall residential building with 19 group housing

no supervisor walton. walton i. supervisor chan chan i supervisor dorsey. dorsey. no. supervisor and gaudio and gaudio. no supervisor randleman mandolin and i supervisor melgar melgar i supervisor peskin peskin i supervisor preston preston i and supervisor ronan ronan i there are seven eyes and four nose with supervisor sapphire stephanie dorsey and in guardian voting no, the motions are are approved. madam clerk, i believe that items. 42 through 45 are no longer before us. yes mr. president. we will state in the minutes tabled by operation of law. okay. could you please read items 46 through 49 together? items 46 through 49 comprise the second special order for a public hearing of persons interested in the approval of a conditional use authorization for a proposed project at 3832 18th street to allow approval of an individually requested state density bonus project and to invoke waivers from the development standards for the rear yard dwelling unit exposure in the height limit that would construct a new six story 60 foot tall residential building with 19 group housing

walton to rescind the vote on item 34 motion made by supervisor walton. is there a second for that? seconded by supervisor preston. we will take that without objection, supervisor warden any comments? or would you just like to call the roll an item 34. roll call an item 34 on item. 34 supervisor ronan running eyes supervisor saw faggy. i g i supervisor stephany. stephanie i supervisor walton walton. i supervisor chan. chan i supervisor dorsey. dorsey i supervisor and cardio. cardio absent supervisor man delman mantle men i supervisor melgar. i melgaard i supervisor peskin. hi i and supervisor preston preston, i there are 10 eyes. alright the ordinances finally passed, but if i may, professor walton pursuant to my unlimited powers of inquiry. did you not vote? yes. on item 34 before. yes, i did, um. it was unanimous and now because supervisor and guardiola's stepped out. we have nine attend. vote. can i just rescind the vote on item 34 the second time we let the original stance? sure 32 of item 32 32. then he said 34 34. yeah. we're good. thank you. all right. we will. i need a motion to rescind the vote that just happened on item 34 and rescind the decision of the original vote on item 34 motion made by supervisor one second by supervisor running without objection, the original vote stands, madam clerk, can we please go to r? 3 p.m. special order? could you please read it

walton. second by me on that motion by member walton, seconded by chair chan. that this ordinance be continued to the call of the chair of vice chair middleton. middleton absent member staff. i remember ronan ronan absent member walton walton i chair chan i chan i. we have three eyes with vice chair and member ronan absent. thank you and the motion passes and with that, mr. clark, is there any further business before us? madam chair, this concludes our business on this agenda. thank you. and with that, just a reminder that we will reconvene on our recess budget and appropriation committee meeting from monday. june 26th at 10 a.m. today. so we will all be back just in eight minutes from now. and with that, this meeting is adjourned. month. >> pacific palisades heritage month is about celebrating the cultural and heritage of our community. >> affirming the asian american pacific islanders. it about register and honoring the path for future generations about celebrating culture. >> may is asian american & pacific islander heritage month empowering the leaders up in the administrator's office and about my daughter if helps the future of the apa heritage and friends and family. >> about family. >> we're honoring the irld

walton. second by me on that motion by member walton, seconded by chair chan. that this ordinance be continued to the call of the chair of vice chair middleton. middleton absent member staff. i remember ronan ronan absent member walton walton i chair chan i chan i. we have three eyes with vice chair and member ronan absent. thank you and the motion passes and with that, mr. clark, is there any further business before us? madam chair, this concludes our business on this agenda. thank you. and with that, just a reminder that we will reconvene on our recess budget and appropriation committee meeting from monday. june 26th at 10 a.m. today. so we will all be back just in eight minutes from now. and with that, this meeting is adjourned. >> it is one of the first steps families and step to secure their future and provide a sense of stability for them and their loved ones. your home, it is something that could be passed down to your children and grandchildren. a asset that offers a pathway to build wealth from one generation to the next. and you need to complete estate plan to protect the asisets. your home, small business, air looms and more. you and so many communities, black, indigenous, latino and asian worked so hard

walton. walton i church and i we have five days. thank you. the motion passes and with that i would like to make the motion to move item 9, 10, 12 and 13 to full bore with recommendation and. second by supervisor ronan and with that would like to move that to full bore with rock. oh, my apologies. i know what he's about to say. we need to make the amendment to item number 92 , according to the budget and legislative analyst recommendation to correct to over $20,000 even even better, madam chair i believe i believe these are both hearings on the administrative provisions, which are actually technically in the appropriation ordinance, so you will make the bellas recommended amendment here. later when you have the full a up in your acting on it, so this is just a call out the administrative positions so you can see them, but you'll be at you'll be making this amendment on another item another day. we will. we will track it for you. if that makes sense. yes and does that mean i can still mode like move them to football recommendation. because i'm not amending the item, though. deputy city attorney and pearson. the item actually is a hearing on the provisions. um and so you can close the hearing and because they are a component of the larger ordinance. you can make that change later. we're just trying to get through the agenda, man. ah, so i'm gonna make the motion to file item nine and 10 hearing heard and filed second by vice chairman delman and roll call on death on the item nine and 10 on that motion that the hearings as items nine and 10 are to be seconded by vice chair mandolin that those hearings are to be heard and filed. vice chairman. gentlemen, i remember stuff i suffer. remember on it. run and i remember walton walton, i chair champ and i we have five ice. thank you. the motion passes and then i would like to make the motion to move items 12 and 13 to full bar recommendation. second by vice chairman delman and roll call, please on that motion, seconded by vice chair madeline. that the items. that the resolution and the ordinance an item 12 and 13 , and before it did to the july 11th meeting of the full board of the positive recommendation, vice chair mental men, gentlemen, i member stuff i suffer. you remember running running. i remember walton. walton. i chair chan chan, i we have five eyes. thank you. the motion passes and, uh, next, uh , department is our general city responsibility. general city responsibility. oh, michelle. i think it's. for you right, like wait, who is presenting sorry, miss. alerts, mma yes, very much. thank you very much. chair chan. michelle always smith from the comptroller's office. we manage this kind of non department. mm. in many of the divisions across our dep

walton. walton i church and i we have for us. thank you. the motion passes and with that i would like to move items six through 11 2 full board with recommendation. second by vice chairman delman and may i have a roll call, please. chair chair. sorry i'm so sorry to interrupt the amendment that you just made with substantive so that one item does need to be continued to next week. understood? so then, uh, minus item seven will send the rest 689, 10 and 11 through the full board recommendation by second by vice chairman delman and roll call, please. on that motion to forward items 689 10 and 11 her to the july 11th full board with positive recommendation has seconded by vice chairman and vice chairman madeleine i'm rusafa. i absent member running. run, and i remember walton. walton i chair chance we have for us. thank you. the motion passes and, uh i would like to move to continue items seven to next week. second by vice chairmen. delman roll call, please cushion to continue items seven to the june 21st meeting of this committee as amended, seconded by vice chairman ellmann vice chair mental men, gentlemen, i members of fate suffering absent member ronan. running i remember walton walton church and i have for us. thank you and the motion passes and the next city department we have is office of homeless. and supportive housing, and, um and could we also call item 12 and 13 together? yes, madam chair. item 12 his northern, relocating approximately 60 million in unencumbered revenues from our city. our home fund tell other city to use revenues from the homelessness, gross receipts text for certain types of services to prevent homelessness and finding that the reallocation is necessary to achieve purposes of our city. our home fund pursuant to business and t

stephanie i supervisor walton. walton i supervisor chan. chan i supervisor dorsey. dorsey i supervisor and cardio and cardio i supervisor man delman handelman supervisor melgar. melgar eyes supervisor peskin. i and supervisor preston preston, either or 11 eyes. those ordinances are passed on first reading and resolutions adopted. madam clerk, would you please read items 21 through 29 2 items 21 through 29 are nine ordinances that adopt and implement various mou s the memorandum of understanding between the city and the following unions items 21 and 20 to adopt the mou for the firefighters. local 7 98 i a f f a f l c i o item. 21 is for unit one and item. 22 is for unit two to be effective july 1st 2023 through june 30th 2026 item 23 is the mou that adopts, uh, the municipal executives association for fire through june 30th 2026 item 24 fixes compensation for unrepresented employees and establishes working schedules and other terms and conditions of employment and methods of payment, effective july 1st 2023 item 25 adopts the mou the second amendment to the mou for t

i remember walton walton. i church hand and i we have five days. thank you. the motion passes. and the next item is our board supervisors budget . thank you and see you next week. members of the committee chair chan the clerk of the board of supervisors. this is the time of the year that we highlight the culmination of the intensive work of our cfos in the city. and i'd like to highlight the work of our administrative deputy, dr edward de assis and his predecessor, junco laksamana, who prepares this material for your review and consideration. for those city employees who made it through the 2008 economic downturn. we will never forget. their precarious economic years occur. and since that time this department. consistently strived to manage its budget requests and expenditures in a transparent lean and efficient manner to ensure that the board of supervisors was able to meet its mandates and to have the resources to appropriately exercise its oversight. responsibilities without excess in general fund or any unnecessary of t ease. the budget request responsibilities. in the curr

walton walton. i chair chan, i chan i, we have five eyes. thank you. the motion passes and i believe we need to because it was more than 12 hours. we need the motion to go on recess. we the motion is to recess this meeting until 10 a.m. tomorrow. friday. june 23rd, second by vice chairman coleman and with that, a roll call, please. and on that motion to recess, this this meeting until tomorrow's meeting of this committee, june 23rd, seconded by vice chair madam vice chair. gentlemen, gentlemen. i member. staff member, staff. i remember running. wrote and i remember walton walton. i chair chan i chan i. we have five eyes. thank you. the motion passes and colleagues. now we're officially recessed until tomorrow morning 10 a.m. month. >> pacific palisades heritage month is about celebrating the cultural and heritage of our community. >> affirming the asian american pacific islanders. it about register and honoring the path for future generations about celebrating culture. >> may is asian american & pacific islander heritage month empowering the leaders up in the administrator's office and about my daughter if helps the future of the apa heritage and friends and family. >> about family. >> we're honoring the irldz that came before us and findings your roots and about culture insuring about the asian-american journey and all we're achieved and celebrate asian-american it means embarrassing the differences. it is about imaging. >> it is about representing as public servant in san francisco. >> about recommending the philippine generations and about how memor

walton seconded by supervisor president supervisor chan. i saw your name on the roster. do you want to speak? thank you, uh, president paschen. i actually concur with supervisors safadi, as well as what supervisor walton has just stated, um, that this is a area that and just really also thank the appellant's for the presentation through learning from the presentation that i concur with, you know, based on the city's transit first policy that the area you know, um it's really intended for production, distribution and repair, which we short that for as considered as p, d r. this is what's that's really is for not really for the user is not for intended to be a parking lot is precisely why it actually requires a conditional use. in this case. i you know, disagree with the approved conditional use permit given, so thank you. motion made and seconded and spoken to madam clerk on the motion made to table item 24 improve items 25 and 26 a roll call, please supervisor peskin eyes supervisor preston preston, i supervisor ronan i nice supervisor safia e. so far, he eyes supervisor stephany. stephanie i supervisor waltonalton. i supervisor chan chan, i supervisor dorsey dorsey, i supervisor and cardio. cardio i and supervisor mandel men mandel men i. there are 10 eyes. the motion is approved colleagues. madam clerk before we go to our second three pm special order. i believe that mr luton has returned as to item number 22. ah ah ah and is ready to speak to that item i don't have in front of me. although there's a lot of paper in front of me a revised, uh report of delinquent charges, but the floor is yours , mr luton on behalf of the department of building inspection. thank you. president peskin. matt luton housing inspection services db. i um during sidebar we were able to remove 17 lines from the um, spreadsheet. that we provided, so i'm just going to read those out. quickly so um the ones removed our line 27. um right 2843284 20/4 street. uh, line 36. ah! 3889 20/5 street. line 56. ah 442. uh 2446 ashbury street. ah lines 105 and 106, both for 4552457 ellis street. line 1 26 100 garfield street. li

walton walton. i chair chan, i chan i, we have five eyes. thank you. the motion passes and i believe we need to because it was more than 12 hours. we need the motion to go on recess. we the motion is to recess this meeting until 10 a.m. tomorrow. friday. june 23rd, second by vice chairman coleman and with that, a roll call, please. and on that motion to recess, this this meeting until tomorrow's meeting of this committee, june 23rd, seconded by vice chair madam vice chair. gentlemen, gentlemen. i member. staff member, staff. i remember running. wrote and i remember walton walton. i chair chan i chan i. we have five eyes. thank you. the motion passes and colleagues. now we're officially recessed until tomorrow morning 10 a.m. >> i'm alice king this is my husband shawn kim and we other ordinance of joe's ice cream in san francisco. joe's ice cream in rich mondistrict since 1959 and we are proud to be registered a san francisco legacy business since 2017. and we offer more than 50 flavors of homemade ice cream. and delicious home style burgers, sandwiches, hot dog, salad and more. we have a lot of different ice cream flavors both classic, long forgotten but classic and asian flavor inspired flavor like 3 red bean and black and now we also brought the korean i'm from korea. korean coffee krooem. we mix our traditional and trendy flavors all together. shawn and i are the first generation of the immigrants here in san francisco. so as immigrants, we have a special connection to this diverse community, san francisco richmond district. so we made this place ou

stephanie i supervisor walton. walton i supervisor chan. chan eyes supervisor dorsey. dorsey i supervisor and cardio. and cardio eyes. supervisor man delman. gentlemen i supervisor melgaard eyes supervisor peskin . i can i and supervisor preston preston, i. there are 11 eyes. those resolutions are adopted in motions approved. madam clerk. could you please read item 59? yes item. 59 this is a resolution to commend nancy werfel for her exemplary advocacy and stewardship in promoting preservation and conservation efforts in the city and county of san francisco to recognize her significant contributions to historic preservation, environmental protection and neighborhood based planning. and to express gratitude for her dedicated service to the citizens of san francisco. thank you, madam clerk. in addition to recognizing the extraordinary works of nancy werfel, i wanted to acknowledge her friends who took it upon themselves to put my office up to singing her praises and her history which in my case started 22 years ago. where in she was, uh, in essence , my secret weapon as

walton. walton i church and i we have for us. thank you. the motion passes and with that i would like to move items six through 11 2 full board with recommendation. second by vice chairman delman and may i have a roll call, please. chair chair. sorry i'm so sorry to interrupt the amendment that you just made with substantive so that one item does need to be continued to next week. understood? so then, uh, minus item seven will send the rest 689, 10 and 11 through the full board recommendation by second by vice chairman delman and roll call, please. on that motion to forward items 689 10 and 11 her to the july 11th full board with positive recommendation has seconded by vice chairman and vice chairman madeleine i'm rusafa. i absent member running. run, and i remember walton. walton i chair chance we have for us. thank you. the motion passes and, uh i would like to move to continue items seven to next week. second by vice chairmen. delman roll call, please cushion to continue items seven to the june 21st meeting of this committee as amended, seconded by vice chairman ellmann vice chair mental men, gentlemen, i members of fate suffering absent member ronan. running i remember walton walton church and i have for us. thank you and the motion passes and the next city department we have is office of homeless. and supportive housing, and, um and could we also call item 12 and 13 together? yes, madam chair. item 12 his northern, relocating approximately 60 million in unencumbered revenues from our city. our home fund tell other city to use revenues from the homelessness, gross receipts text for certain types of services to prevent homelessness and finding that the reallocation is necessary to achieve purposes of our city. our home fund pursuant to business and t

walton. walton i church and i have five guys. thank you in the motion passes. thank you. colleagues. i really appreciate all of you. um and all of your patients here. uh i want to quickly flag and also want to thank the department of public health as well. colleagues i think i want to fly for you that you know, with all these public comments has also a lot to do with the trailing legislations that unlike years past difficulty there just fee schedules, but, um it's an unprecedented years with all these legislation coming before us, particularly does that are not easy to solve. um so do we have department of public health here? i don't blame them if they're not, but of course, dr colfax, you're right on time, and we appreciate you. thank you. should we start, please? good afternoon supervisors. thank you so much. um i'm grand kovacs, some of the director of health and we will get right into our budget. i do want to start by by thanking, um anna dunning. do you mean of the at the mayor's office for her work and support? um at the budget off as leader of the mayor's budget office, and then jenny louis, our budget director did an incredible amount of work . and just as you will see, in our in our presentation. that we have met our targets without any reduction in service levels despite this very challenging environment, with the exception of continued stepped down of our covid 19 efforts, which i think is appropriate given, thankfully , where we have come from in these last three years, and we've met our targets, primarily through revenue and focus limited growth in key areas. next slide, please. so our mission and vision in the department of public health our mission is to protect and promote the health and well being of all san franciscans, and our vision is to make san francisco the healthiest place on earth. what we do we do a lot . um as you know, we are a large department with many charges. we assess and research the health of the community we develop and enforce health policy. we prevent disease and injury. we educate the public and trained healthcare providers. we provide quality, comprehensive, timely and culturally proficient health services. we ensure equitable access to healthcare and we continue to focus on reducing health disparities and increasing health. equity. next slide. we are an integrated health department. i think this is incredibly important and to the city's advantage to ensure that we provide our services. when people want them and need them. you'll see that we have two major divisions. we have our population health branch, which is responsible for protecting the general health of san francisco residents, workers and visitors. this branch will continue to be at the core of our covid response, but also does many other things, including. prevention and control of other infectious diseases does regular health inspections for facilities does . research, including on hiv and promotes the health of all residents. the population health division is 7% of our total budget. then we have the same francisco health network, which is 87% of our budget. this includes zuckerberg san francisco hospital, which is the only level one trauma center in the area. as you know, a 24 hour facility. laguna honda hospital , the largest skilled nursing facility in the country, and the skilled nursing facility, that we continue to work very hard to ensure that it is not only re certified, but the model for what a sniff can be for the future. we have an extensive behavioral health service network, which is continually improving and expanding and meeting the needs of our community. we have primary health care clinics throughout the community, which serves tens of thousands of people a year, mainly those with medicaid or without any medical coverage. we have jail health services, and we also have other services within the network, including maternal child health. health at home, hiv services and a very important component of ensuring that we provide seamless services is the electronic health record, which again sits mainly in the san francisco health network. we also have an operations branch, which is 6% of our total budget. next slide, please. the overview of our dph budget you'll see on this side again. um large components include zuckerberg san francisco hospital, which is 38% of our budget. you see behavioral health 20% of our budget and then the other large. the third largest is tied for our laguna honda hospital and health, other health network services and you'll see both the budget and the fts for each of those areas. the budget increases by 8% compared to the current year and then remain stable for the second year. i think it's important to point out to additional emphasize to other additional points despite our growth. our general fund support is reduced from 33% to 27. and also the fact that we leverage 70% of our budget through revenue. next slide. i know that you're was asking in preparation for this, uh, presentation how the department's work to alleviate poverty. and what is language access in your in your in your department. i just want to emphasize that access to quality care. it's not often talked about in health care. it is a major factor in alleviating poverty and just to give you some examples. medical debt is one of the key drivers of people falling into poverty. we prevent that, um by keeping by providing services either through medicaid through charity care through healthy san francisco, um and other key components of ensuring that anybody who needs health care in san francisco can access health care and that it's not going to cause them and you financial hardship. the other component of this is the fact that staying healthy, preventing disease and managing what chronic diseases you may have, um, is a key predictor of ensuring that that that that you maintain your economic stability as much as possible, so healthcare is directly related to preventing poverty and alleviating poverty. in terms of language, language access. we have, um bilingual clinical staff throughout the department interpreter services are available in hospitals and clinics. and we do outreach in multiple languages, including the languages listed on this slide. next slide. so there are many dph programs to address health disparities to improve health equity across our systems . these are several key. these are key programs that we listed as examples. i will not read through them. but just to say that you can see that we have very specific programs and maternal and child health. through behavioral health and all the way through to two population health so really, at every level of the department, we are committed to health equity. we're driving change in that work, and you can see from this, uh, list of services, which again is not complete list of programs. we continue to make sure that that is one of our north stars going forward. next slide. and then, um, supervisor walton was specifically asking us with regard to understanding programs for black birth. what we're doing to address the disparities that we see in african american black birth outcomes, and we have multiple programs that are focused on on reducing this health disparity towards south equity, including the abundant birth project, which really it goes beyond the direct medical service care. that is an important point, but we also now know from the research that you need to go, you know, beyond the traditional level of peri natal care in the health care delivery system to really broader socio economic supports for people who have poor poor people who who have poor poor populations that have poor birth outcomes. so that is part of the abundant birth project work. we also do doula training and access to duly care. where do look care to support pregnant people again going more upstream fruit and vegetable grocery vouchers vouchers being provided to 150 families at risk for poor birth outcomes and

stephanie i supervisor walton walton and i supervisor chan chan i supervisor dorsey dorsey i supervisor and gaudio and gaudio absent supervisor mandel and i supervisor melgar i melgar i supervisor peskin and peskin i supervisor preston preston i and supervisor ronan ronan i and there are ten eyes those resolution are adopted in motion approved. madam clerk, could you please read the immemorial today's meeting will be adjourned in memory of the following beloved individuals on behalf of supervisor safai for the late miss sharon thomas, on behalf of president peskin for the late miss judith schiff, mr. patrick arbor. mr. carlos rico moreno and mr. robert costanzo. we are adjourned. >> long it was in fashion, o'shaughnessy water system has been sustainable. in addition to providing water for the bay area, it also generates clean hydroelectric power to run city buildings and services. and more recently, some san francisco homes and businesses. >> satellite electricity is greenhouse gas free, so we see a tremendous benefit from that. we really are proud of the fact that, we've put our water

walton walton i supervisor chan chan i supervisor dorsey dorsey i supervisor and guardian and guardian i supervisor randleman mental ellman i supervisor melgar. i melgar i supervisor. peskin peskin i supervisor preston preston i and supervisor ronen ronen i there are ten eyes all right. the motions are approved. madam clerk, why don't we go back to roll call for introductions where i believe supervisor stephanie had just concluded? yes. and supervisor walton is up next to introduce new business. thank you, madam clerk. first of all, just want to give some. brief updates on. outside boards as far as our workforce investment board in their staff presented their fiscal year 2023 funding recommendations, focusing on on demand industries and equitable pathways for residents. the recommendations received positive feedback from wusf members and the public, and they were approved. as you know, earlier, we had an update from caltrans. but i do just want to state for the record that we shared some updates. this morning, but briefly. on july 29th, there will be an event for the public to view the electric trains for the first time at san jose dearden station and likely in early september, another event for the public at fourth and kings station in the summer of caltrain program is currently happening, which is a three month promotion for rider appreciation and promoting ridership this summer, including rolling back june's planned fare increase for a

walton walton. i supervisor chan chan, i supervisor dorsey. dorsey i supervisor and cardio and cardio i supervisor man. delman handelman eyes supervisor mel gar. melgar i and supervisor kreskin. i neither are tonight's resolutions are adopted and motions approved. madam clerk. could you please read item? 48 48. this is a resolution to urge governor gavin newsom and the california state legislature to provide operations funding to help san francisco transit system survive as they recover from the pandemic. supervisor dorsey. thank you. president peskin colleagues will keep my remarks short, um. but i did want to express my appreciation to a lot of the folks who have been active in in and around these issues, especially given what is happening at the state legis state level and i, in particular, want to express my gratitude to supervisor preston , who presently authored and passed a similar resolution a few months ago. given the uncertainties of what will happen in sacramento, um, encouraged to see such an outpouring of support from city hall, as well as many other bay area leaders and advocates. for this issue. um transit is so fundamental to so many so much of what we do in san francisco in the bay area. i can't imagine a future without it. i'm hopeful. hopefully, we don't we won't have to. i do want to make one housekeeping amendment in this resolution. i want to fix a typo that i'm told by our city attorney is not substantive online 20 of page one. there is a reference to the fact that impossible nightmare scenarios. sfm ta may have to cut one bus lane a month for 20 months. we should be so lucky. actually, it would be the reference to one bus line. per month. so i would like to move to adopt that amendment motion made by supervisor dorsey, seconded by. supervisor mel gar. supervisor staff i e. i'd like to be added to item number 48 and myself. we are already listed as a coast monster, not on the printed version, but i think your staff associate myself with the comments. yes, sir. rather walton supervisor, um, associate myself with the comments of rather dorsey. this is an extremely extremely important item that i think people don't realize the impacts other than the folks in this room and some that have been on the front lines how important this is to the future of public transportation. thank you. alright same house. same call. the amendment is adopted and on the resolution as amended same house seems called. the resolution is adopted as amended and we are adjourned. mr president. i haven't memorials memorial we will send them out. my apologies. we are not adjourned. madam clerk. would you please read the memorial? today's meeting will be adjourned. in memory of the following beloved individuals on behalf of supervisor peskin and supervisor stephanie for the late officer chris anderson, and on behalf of super president peskin for the late brenda joyce washington. now we are really adjourned. everybody is happy today it is money day! [laughter] well, thank you for being her

walton. thank you, okay. second okay on the motion. remember renan, seconded by chair chant. that member walton be excused. vegetarian mantle man. battlement i remember staff i remember on it. run and i chair chan. i. chan, i we have four eyes with member walton excused. motion to send it to the full board positive recommendation as read into the record with continuing item number seven. roll call, please behind. need a 2nd 2nd okay, tomorrow. can we actually do that? what's that? i'm sorry. can we actually continue the vote tomorrow? no, because it's not on the agenda. guys. let's just that's fine. he's excused. we already excused. hey yeah, i think like let's vote on this, but, uh i'm going to make a comment after this, but so let's let's go on it. okay so on the motion by marie saffet seconded by church , and that items 689 10 and 11 be forwarded to the june sorry july 11th full board of positive recommendation and that item number seven but continued to the june 21st meeting of this committee and vice chairman. madeline i remember stuff i remember on it. running a church in my we have four rights with member walton excused. thank you. and the motion passes. um i just want to say this colleagues if i may, and i'm just going to say this, an

i remember walton walton. i church hand and i we have four hours with member safayev. thank you.the motion passes and mr clark, do we have any other item before us today, madam chair that completes our business for this committee. and just for those just want to notice that there is a special budget and finance committee that would just be supervisor mandolin and i and that with that set, the budget and appropriations committee is adjourned. [music] my name is husheem anderson a lieutenant with the san francisco fire department born and raised in san francisco, grew up in western addition. both my parents worked for the city. my dad was a custodian with san francisco school district and mom a muni driver. when i grew up in san francisco i never thought of the fire service as a career. not because i didn't want to be a firefighter, i just didn't know anything about it and it was literally the experience of trying to figure what i was going to do with the next part of my life where i decided to go to city college and take a couple classes. that is when i discovered there was actual

walton walton . i church and madam chair. there is no position. thank you . the motion passes and the neck city department next city department is juvenile probation. go ahead. welcome. are we ready? okay. good afternoon supervisors . it's good to be with you here. you could be with you here today. um i'm already speaking very fast in anticipation of this. um i want to thank the staff for with me here from probation and all of our staff as well as everyone here considering what we have to present as well as our commission who unanimously supported the budget that we bring to you. we have a lot of slides with a lot of information. they are really for your reference and consideration, so i'll go through them at a high speed. and then, of course, have time for any questions. next slide. we always start with j p d's goals. but i just want to remind us that jps goals are actually our goals. they come from the closed juvenile hall workgroup. they come from the commission. they come from local mandates that have handed down to us, uh as d. j j has closed at the state level and they come from our race equity plan. they also go along with all of the statutory requirements that we follow, but i think what's important about our goals is that they really speak not only to what we do but how we do it in collaboration. our work is aligned with these goals and the budget you have is also aligned with these goals. next slide. next slide. so this is my fourth budget cycle here at the department. our approach over time, i would say has been both steadfast in the direction we're heading, but also dynamic and how we've gotten here we have in the last four years, right sized our workforce to align with a two plus decades of decline and juvenile arrests to the lowest fte in decades. we've right structured the department to change how we do our work. and the fiscal accountability we have taken on the last few years has enabled us to increase our community investment and that commitment next slide. this is also our fourth consecutive year of meeting the budget instructions which we have done in the budget before you we have been and we continue to be really transparent about where we can and where we can't make cuts, um and really are focused on having, um, a budget and a workforce that enables us to implement the work we all want to see done. next one. so supervisor chan asked the important question about poverty alleviation and also language access. uh this slide highlights a lot of the work we've been doing, and the first two bullets offer a number of specific examples of the changes we've made in our work. to improve how we support young people and their families to support poverty alleviation, including direct funding to families for the first time ever, providing culturally competent support and to really do the work through collaboration and kind of beyond what we have thought of as traditional probation work. next slide. this slide shows are reduced fts over time, most notably a 32% reduction in our probation division and a 22% reduction in our juvenile hall staff. next slide. it was really important for probation to move away from what i would say we're the legacy staffing levels from eras of higher crime and system involved young people. but as we planted our feet in the present , the ground has shifted a little bit beneath us. from 2021 to 2022 the number of young people who are referred which really means arrested and youth admitted to the hall have increased significantly. we are committed to doing the work that we do with the positions we have , but we do need all of them, and we do need to fill all of them. do you want to say that? i know this slide is disheartening. think it's important to note that while we're still seeing large increases of kids coming in since the peak of the pandemic, we're still below 2019 levels of both of those numbers. um for example, from january to april of 2019 versus this year, we are still seeing 20% fewer arrests and 54% fewer admissions to juvenile hall, which really, frankly relates to the policies and decisions we've put in place around who doesn't doesn't need to be in secure custody. next slide. despite the increases in young people coming in, we obviously still have a relatively low number of young people in custody. we have 28 today. operationally the driving metric for us is not the number of young people in the facility. it's the number of open units in the facility. our standard has been about four units open in the last year, at least at any given time. two of those units actually reflect that new state mandate we have. they are not part of our traditional juvenile hall population in those four but sometimes we need to operate more, and you can see that in recent months, there's been days where we've had as many as five or even six units operating. we have six operating today. sometimes it's because we need to stand up a girl's unit. somebody may have covid. there's still reasons why that happens for us next slide. and we've seen this play out with our overtime by march this year, we spent all of our budgeted over time, and we know it carries both fiscal and human costs. we have staff routinely working double shifts right now, and we've had to mandate over time. while we work to fill the vacancies we have next month looks like and then this just shows a sense of who we are working with who is on probation. this slides from april but most recently, as of june 8th. we had 368 young people on our probation caseloads up from 268. that's the low point during the pandemic. next slide. these are our performance measures as requested. i would characterize them as legacy performance measures. we inherited them. our plan with our commission in the coming year is to revise these to be more relevant to the work of the moment. next slide. next slide. i'll discuss revenue and expenditure quickly, but a couple of items of note when you see our budget in totality at the bottom, um one is that we now have a new division called community investments. it's not a staffed division at j p d. but it is a way of trend of tracking for you with transparency. how much we're investing directly in community and then i also want to note that the budget division at the bottom that's traditionally been called juvenile hall is now juvenile hall and secure you treatment facility to reflect that state function that we have now absorb. orbed we essentially have two programs running in one building now. next slide. j p d is really lucky that we have a blended portfolio of revenue. about a third of our budget comes from this additional revenue. a big array of state apportionment, which have stayed very, very stable, even in the current economic climate and some federal reimbursements of our work, so we've given you the fullest on this slide, and then the next slide is just a visual of the same. and then next slide, and then this slide gives you details on all of our expenditures. personnel is two thirds of our expenditures that stays pretty constant work. orders to other departments is another 20% with the bulk of that being work order sydney c. y f to go directly into community in the form of investments to cbos to work with our young folks. and again, here's a visual representation of that slide. and then the next slide shows the breakdown of expenditures by division, including that new call out of community investments. next slide, so this slide summarizes our key budget strategies, most notably, we've been able to shift positions that were general funds who are steady and even growing state of portion mints. we've been able to do that without reducing our community investments. and a few positions in the department will be held vacant for attrition in the coming year. next slide. so this is our current order chart with position statuses. as of june 8th. we have continued hiring on all indicated positions on this chart. i'm very happy to provide details on any of that, as needed. and then this final slide shows all community based organization programs that are either fully or partially funded by j p d dollars. even since last fall, we've awarded 1.9 million in additional funding to the community to support our young people. these are highlighted in yellow and they heavily focused on serving those long term committed young people who we are now responsible for as the state closes its youth prisons, and i just want to end by noting that i put this slide here because i also see this as critical staffing of san francisco's youth justice system . um and worley worked in alignment with our staff as well, so all of this together is essential. and i will stop here. thank you. thank you, supervisor walton. thank you, chair chan and thank you, director miller. and i know you touched on this a little bit about the commitment now we have from d. j. j, but what's the current update on the closure of juvenile hall and the numbers up because of the new changes with d. j. j. the numbers in the hall. correct absolutely. so we have nine young people in our juvenile hall now in what's called our security treatment facility. that's the state statute name. it's not our chosen name, um, that have been committed by the court for periods of 2 to 7 years. and that is that reflection of the change in state law. so nine of the 28 who are with us today have those long term commitments. previously would have been eligible to be sent to the state. before this new law took effect. and what does that leave us in terms of the work on the closure of juvenile hall? so i would say that, um, we have to think about kind of both populations as we ask ourselves. what comes next, so in terms of the closure of juvenil

i remember walton walton. i church hand and i we have four hours with member safayev. thank you.the motion passes and mr clark, do we have any other item before us today, madam chair that completes our business for this committee. and just for those just want to notice that there is a special budget and finance committee that would just be supervisor mandolin and i and that with that set, the budget and appropriations committee is adjourned. sf gov t v. san francisco government television. yeah. good evening. thank you for joining the, um budget and special budget and finance committee. um i am supervisor connie chan, the chair of this committee and joined by vice chair uh rafael supervisor rafael men. doman our clerk is brent jalapa. and this i want to thank sfp of tv matthew signal for broadcasting this meeting. um mr clark, do you have any announcement? thank you. madam church, just a friendly reminder for those in attendance. please make sure that sounds all cell phones and electronic devices system that interrupted proceedings how the board of supervisors and its committees

walton walton. i supervisor chan chan, i supervisor dorsey. dorsey i supervisor and cardio and cardio i supervisor man. delman handelman eyes supervisor mel gar. melgar i and supervisor kreskin. i neither are tonight's resolutions are adopted and motions approved. madam clerk. could you please read item? 48 48. this is a resolution to urge governor gavin newsom and the california state legislature to provide operations funding to help san francisco transit system survive as they recover from the pandemic. supervisor dorsey. thank you. president peskin colleagues will keep my remarks short, um. but i did want to express my appreciation to a lot of the folks who have been active in in and around these issues, especially given what is happening at the state legis state level and i, in particular, want to express my gratitude to supervisor preston , who presently authored and passed a similar resolution a few months ago. given the uncertainties of what will happen in sacramento, um, encouraged to see such an outpouring of support from city hall, as well as many other bay area leaders and advocates. for this issue. um transit is so fundamental to so many so much of what we do in san francisco in the bay area. i can't imagine a future without it. i'm hopeful. hopefully, we don't we won't have to. i do want to make one housekeeping amendment in this resolution. i want to fix a typo that i'm told by our city attorney is not substantive online 20 of page one. there is a reference to the fact that impossible nightmare scenarios. sfm ta may have to cut one bus lane a month for 20 months. we should be so lucky. actually, it would be the reference to one bus line. per month. so i would like to move to adopt that amendment motion made by supervisor dorsey, seconded by. supervisor mel gar. supervisor staff i e. i'd like to be added to item number 48 and myself. we are already listed as a coast monster, not on the printed version, but i think your staff associate myself with the comments. yes, sir. rather walton supervisor, um, associate myself with the comments of rather dorsey. this is an extremely extremely important item that i think people don't realize the impacts other than the folks in this room and some that have been on the front lines how important this is to the future of public transportation. thank you. alright same house. same call. the amendment is adopted and on the resolution as amended same house seems called. the resolution is adopted as amended and we are adjourned. mr president. i haven't memorials memorial we will send them out. my apologies. we are not adjourned. madam clerk. would you please read the memorial? today's meeting will be adjourned. in memory of the following beloved individuals on behalf of supervisor peskin and supervisor stephanie for the late officer chris anderson, and on behalf of super president peskin for the late brenda joyce washington. now we are really adjourned. >> so i'm linda i'm part owner and manager of the paper tree in jeopardy an town.

walton walton. i chair chan i chan i. madam chair. there was no opposition. thank you. the motion passes and i believe the second motion is to recess this meeting until monday, june 26th, at 10:00. in this chamber, i can buy supervisor ronen and roll call, please. on that motion member for vice chair randleman middleman. i remember i safai. i remember ronen. ronen i remember walton, walter and i chair chan. thank you. the motion passes and with that we are now in recess. recessed. your. >>> the tenderloin is home to families, immigrants, seniors, ment

walton walton. i chair chan i chan i. madam chair. there was no opposition. thank you. the motion passes and i believe the second motion is to recess this meeting until monday, june 26th, at 10:00. in this chamber, i can buy supervisor ronen and roll call, please. on that motion member for vice chair randleman middleman. i remember i safai. i remember ronen. ronen i remember walton, walter and i chair chan. thank you. the motion passes and with that we are now in recess. recessed. your.

walton. thank you so much chair chan. just real quick question director or you talked about guaranteed income in the effect on benefits. what about the effect on housing? thank you for the question. supervisor walton. i'm in discussions with director mcspadden at hsh. um we know that hud has not provided any exemptions from for guaranteed income for rent calculations. um that was pursued by the state and in partnership with c w d n counties, um, so i haven't yet approached tanya today. who? because i know the feds have already said no. however there might be room locally with director mcspadden. they do, they would have flexibility for their non federally funded, supportive housing programs to exempt that guaranteed income in terms of rent calculation, and we're in those discussions now. thank you. thank you and seeing , um, no more names on the roster. let's go to public comments of for item number three. thank you, madam chair members of the public who wish to speak on item number three energetic person should line up now and for those who have joined us remotely and haven't already done so. press star three. if you wish to enter the speaker liner for those already in the queue. police continue to wait until the system indicates you have been admitted. that will be your second. begin your comments. fixed step up and i'll start your time for one minute. oh i've become aware of through, um um supervisor ronan that san francisco's park and recreation department controls over several 100 acres of parkland in the sierra nevada. the land areas actually smaller than the private nature preserve, recently sold by supervisor preston. however, can't matters notably developed parkland. capable of providing meals and cabins during freaks peak season. $1700 per individual per month. or $1700 per week. for a party of for half the congregate , right, um in san francisco and matching the amount supervisor mandolin hoped to obtain for disadvantaged housing. without generous meals. the languishing accommodations. uh industry generally slashes rates during the off season beginning mid september, establishing camping areas for tent living, um, can host hundreds of established camping area, particularly living king hills. hundreds of guests i would like to see sheriff's deputies. martinez custodians, retired police officers, urban alchemists and support fruit, uh and friendly reminder at the committee level . we are taking comment on. on items on the agenda and right now we are taking public comment on the ordinance amending the administrative code thing, chris minimum early compensation rate for certain employees. saying no other speakers here in the chamber. um mr su, if you can meet our color, please. good morning, sharon committee members alyona, gender policy manager for glide, calling in regarding food funding, and the cost of doing business increased as early to them ceo, the pandemic and the end of additional pandemic era food benefits have underscored the level of hunger in san francisco and the vials local community based programs. food inflation has also been at all time highs and recent years. in response budget must continue and expand funding for programs across the city programs provide vital support for families, older people and people disability. hunger was already high before covid and his only increase in cisco and across the country started the pandemic needs to prioritize food, especially given the reduction of the state and federal level. i also support us beauty be that at the very least, keeps pace with inflation. thank you. thank you so much. eliana binder for your comments, and, uh and again friendly reminder right now. we are taking comment specifically on the ordinance, amending the administrative code to increase the minimum hourly compensation for certain employees. how we are not taking a comment on the department budget as just presented that will be taken much later in. they will be taken as soon as all the departments have. have presented their budget information. so with that said, mr su, if you can meet her next color, please. supervisors this is doubly alarming that the human services network it is crucial as you all know to raise nonprofit wages to address recruitment and retention and we support the ceo increases. nonprofit workers deserve better. but we are concerned about the basic principle that the city should not imposed unfunded mandates on non profits and the m c o expresses that principle by requiring the city to fund increases. the mayor's budget has a 5.75% m c o increase in year one and 7% in year two. and while there's some funding to raise the base, it relies on the cost of doing business for wage compression cost of doing business of three or 4% is not enough to cover the costs of the race. and that's one of the reasons we're asking the board to provide an additional 2% cost of doing business in the final budget without adequate funding. a mandatory wage increase is fundamentally a cut. that will force service reductions to cover the costs. thank you so much. debbie lemon for your comments. mr student next speaker, please. so. it's okay to raise the minimum compensation. but we did comes training. and more training regarding. the issues that depend emmick has brought its not of you all have addressed. talking general terms. so the board of supervisors and the mayor so far. you haven't address the core issues that the pandemic has brought you want. amazing. but do not want to address the gory issues. and i can go deep into it, but you'll give me earlier, miss lee, one minute. thank you, francisco. the customer. your comments. how mr soon next speaker, please. how am i apologize, madam chair that completes our cue. thank you so much more public comments public common is now close. um colleagues, i would like to make the motion to send item three. the minimum compensation ordinance to full bore with recommendation. second by vice chairman delman and may i have a roll call, please. yes on that motion, afford this ordinance to the july 11th full board meeting with the positive recommendation advice from andelman. metal men. i member self. i safari absent member ronan. running i remember walton walton. i church and i we have four eyes. remember safayev, thank you and the motion passes. and the next one. we have human rights commission. good morning. has everybody i will try to go through my slides. um and share them with you all for my glasses on. so um , the human rights commission's budget has grown over the last six years. and what we've outlined here is, um, where the $34 million that is now our funding that comes from the general fund where it sits. i'll share a little bit more on the next slide. um but i will say that 73% of our budget is specifically allocated to community centered and community serving programs. and the majority of those programs are focused on, um disparities or addressing issues of discrimination, bias or alleviating poverty or doing community empowerment. so when you see this, what we did is do the breakout of where some of the additional dollars are. but you can see this year we leverage some dollars to support the gap for food, security, food in

walton walton. i chair chan i chan i. madam chair. there was no opposition. thank you. the motion passes and i believe the second motion is to recess this meeting until monday, june 26th, at 10:00. in this chamber, i can buy supervisor ronen and roll call, please. on that motion member for vice chair randleman middleman. i remember i safai. i remember ronen. ronen i remember walton, walter and i chair chan. thank you. the motion passes and with that we are now in recess. recessed. your. >> good afternoon. my name is (indiscernible) i'm the ce o. of the mission economic development agency. we are the codevelopers and owners of this beautiful beautiful building. [applause] thank you to all of you for gathering for this great occasion to celebrate the grand opening of casa de (indiscernible) 681 florida. [applause] this project is yet another win for affordable housing in the mission district and the city of san francisco. it is the result of years of work in partnership with tenderloin

walton be excused until those their arrival. the vice chairman, gentlemen, i'm member sophie. suffer. you remember running. run a knight chair, champ. we have four eyes with member walton excused. thank you and the motion passes. and with that, um. i would like to quickly explain how today's agenda will run of starting from item two and onwards. we will be taking budget presentation from each city department in the order listed on the agenda you see today, uh and then some departments will have additional legislation also known as trailing legislation titled they're, actually, they're department budget. um, and so we're going to go through that. um but so when each city department that has also the trailing legislation that comes with it will also be called at the same time, a company that city department because of the trail legislation. those trail legislation will require and allowing us to open for public comment with those items. so um, of course, those chill items also have the budget and legislative analyst's report so we'll have the department, uh, presentation for their budget and then the trailing look. gestation presentation and then go to the blog report. then we can go into questions and comments and then go to public comments for those legislation. and so with that, um mr clark, please call item number one. yes madam chair item number one is a hearing to discuss the controllers. fiscal years 2023 to 2024 and 2024 2025, or revenue letter and controllers discussion have the mayor's proposed budget. how members of the public who wish to provide comment on this hearing should call for 156550001. today's meeting ideas to 5910926245. then press pound twice. and if you haven't already done so they'll start three lined up to speak. he promptly and to get that you have raised her hand. and when the system indicates you're having and muted you may begin your comments. madam chair. thank you, and we have the controller. hi we have the controller to present this item. thank you. good morning, madam chair members of the committee. ben rosenfield city controller. um, as you're aware, the charter requires the controller to review the mayor's proposed budget and provide public commentary on our findings of the reasonableness of the revenue assumptions in them. additionally the board of supervisors and mayors and mayor over time, have created additional reporting requirements on things like reserves and baselines and other compliance questions. um we rolled this analysis into a document, which we call it referred to as the revenue letter. we published it earlier this week, and it's available on our website. um and we can very briefly talk through it here today. there you go. okay. next slide, please. so i will very briefly open with the summary, and then i'll turn the presentation over to carol lu are citywide revenue manager to talk through many of the details in the report at a high level, we worked very closely with the mayor's office on the preparation of the revenue forecast in this budget , so we do find that it's reasonable. generally speaking that that economic forecast i assumes what we've been experiencing in the current year. continued slow economic recovery here in san francisco, although not yet back to the level that we were at prior to the pandemic. you see that economic growth translated until most of our economically sensitive taxes, with the big exception being the persistence of remote work and the impact that's having as a drag on our economy and uncertain tax revenues. we know that the budget is heavily balanced on one time solutions. um and that means that we should expect a lot of significant structural budget gap when we begin next year's budget process are preliminary estimate would be approximately $500 million shortfall for the year that lies just outside of the two year budget. that's here in front of you. um and then, lastly, as has been true through throughout the pandemic and recovery we need under remember that the budget is a plan. um and that circumstances will change as we go through it, and it will take active monitoring by our office and active management by the mayor and the board. in the 12 months and 24 months ahead. so that very high level opening alternate over to carol liu to go through some of the details. i'm excited. all right. um so key findings of the report, um, tax revenues or tax projections are growing. but slowly, um, has been mentioned, um in that drag is related to the impact of remote office work on activity in the city. um adjusting for rate changes. many of the economically sensitive taxes are projected to remain below pre pandemic levels, um, in the budget period, including business sales, hotel and transfer tax. um one time solutions were critical to balancing and they included $405 million of fund balance, which included $117.2 million of prior year. d appropriations. um $250 million of fema reimbursements. $172.3 million of reserve draws. $125.9 million of temporary fund shifts, and that adds up to about a billion dollars in the two year budget. um as mentioned reserves are used to balance the budget, but the city is not eligible to withdraw or deposit into the economic stabilization reserves, so those balances remain, and by the end of the two year budget, the city will have used a little bit more than 40% of its pre pandemic reserves to support ongoing operations. next slide. um this budget makes some progress towards the structural budget gap identified in the march update to the five year plan. at that time, the 25 26 deficit, which is the third year the year after the two year budget, it was forecasted to be $724 million. but given the solutions proposed in the mayor's budget, the shortfall in 25 26 appears to be over $500 million um the final budget will require active monitoring and management given the economic and financial risks. um these risks include slowing economic recovery or potentially recession delays in the re certification of laguna honda hospital and risks to state and federal revenue streams. um at the state level, they're likely to, you know, the state is likely to face the same kind of economic pressures, the city faces and um and that could result in potential cuts to cities and counties. at the federal level. our largest risk is related to the pace and size of reimbursements from fema. we've received about 40% of the total reimbursements that we are anticipating. next one. there are several notable legislative proposals assumed in the budget . that impact revenue. um the first are three business tax proposals, which, um, with the total all funds, impact of $31.8 million in fiscal year 23, 24 and $38.8 million in 24 25. so those three proposals are the commercial rents tax deduction for sub lessers. the impact is $17 million per year. the delay in grocery seats tax increases for certain businesses. the impacts there are 10.4 million and 10.6 million in the budget years and tax credit for new businesses locating into the city 4.4 million in the first year and 11.2 in the second year. so all of that's assumed in the forecast. um second, there are a number of voter adopted spending mandates that the mayor's budget office must adhere or that the final budget must adhere to, um, and those are met with temporary modifications. um to the early care and child early care and education baseline as well as changes in spending categories to the our city. our home fund, which is funded by the homelessness, grocery seats, tax. um and then, also important to note is that a number of newer baselines have provisions to suspend growth in the baseline if the deficit reported in the march 5 year financial plan exceeds a certain threshold . this threshold was met for four baselines and growth is assumed to be suspended in the budget for those baselines. um and finally another piece of legislation that increases the minimum compensation rates for nonprofit and public entities over a period of time in the budget funds. those increases next. so they all funds budget is $14.6 billion in the two budget years, and the general fund is about half of that 6.9 billion in fiscal year 23 24 and 7 billion in 24 25 and the most significant source of the junk into the general fund is our local tax revenue. um, of that we've shown the biggest sources on this table property, business , hotels, sales transfer and executive compensation, taxes and by 24 25. these taxes will make up about $4 billion of the general fund. so when you look at the growth of these taxes, pre pandemic 18 19 2 now or two through the budget years, 24 25 . you can see that our sources are expected to grow 11.5% over six years and on its face that that seems okay. but the point we want to make here is that the sources with asterisks next to them these how these are either new sources or have had rate increases post pandemic next slide. um once you exclude the impact of those three asterisks policy changes, growth falls or sorry of those three taxes growth falls to a very meager 4.1% over six years and in fact adjusting for rate changes, business and transfer tax are still performing worse in the budget years than they had before the pandemic. and the three policy changes i'm referring to are the 2020 prop f um, which expanded and changed that business tax rates 2020 prop i, which doubled transfer tax rates on the largest transactions and 2020 prop l, which taxed executive compensation. next. so here's a graphical look at some of our most economically sensitive taxes starting from 607 through the budget forecast and the dotted vertical line shows where we are estimating what our estimates are for budget. um and all of the lines you can see drops in fiscal year 2021. although transfer tax it's delayed, it's dropped his delayed, um until the current year 22 23, and then you can see the trajectory of the recovery that's being forecasted in the budget. i'm next. i'm a bit more detail about what we're assuming and property tax roll growth is assumed, um, of 4% and 2.5% a bit less than a million dollars of property tax is assumed to be diverted to support various tax increment financing districts, including redevelopment projects and infrastructure financing districts. and then we're assuming refunds of 64 million and 103 million in the two budget years will be paid when the assessment appeals board makes determinations on reductions, and this is where we capture our assumptions about reductions and values for various property types. um and business tax. this is just this is really referring to the general funds, grocery seats tax . we're assuming underlying growth of zero and 1% with remote and hybrid work continuing indefinitely. and as previously mentioned, we assume the property tax changes being proposed or passed. next. hotel taxes assumed to continue its recovery in the budget period after a more than 90% drop in fiscal year 2021. hotel taxes not anticipate to recover to pre pandemic peaks until well after the budget years. um the recovery and hotel tax so far has been led by leisure travelers and their pent up demand for travel, but to fully kind of regain our position on hotel tax will need a combination of more business and international travelers and critically convention business, which is what drives up revenue through compression pricing. um and just for context in 18 19, which was an unusual peak. there are 54 conferences with over 700,000 attendees. and in the current year we've had 26 conferences with a little less than 200,000. attendees um, depicted here is revenue per available room, which is an industry indicator that correlates with hotel tax receipts. current months of taped rev. par i am through early june is about $150, and the budget assumes annual average rev. part of 100 and $78.60 in fiscal year 23 24 and about $200 in fiscal year 24 25. and i'm just for context. pre pandemic annual rev. par was closer to 250 million, so we have a ways to go. next. with remote office work and rising interest rates. transfer taxes plummeted in the current year. the budget assumes that the current year is at the bottom of transfer tax and that we will take four years of modest growth to return to a new study state by 26 27. this is the most general funds most volatile source where less than 1% of transactions drive more than 50% of revenue. um and unfortunately , those highest value transactions have stalled out recently. um this picture shows what transfer tax would have been had the current rates been, in effect all the way back to, uh, 01. and you can see a few things. um first the huge drops during the dot com bust in the great recession, um, they're huge spikes as well. um, and so that's how you can see the volatility. um and then second, the orange shows revenue generated by sales over 25 million in blue show sales below that, the smaller the low, the smaller sales stayed relatively constant compared to orange and , um what really drives the taxes. these large transactions. thanks. alright so the comptroller's office is required to measure and report on various voter adopted spending requirements and we discussed 17 requirements in our report totally more than $2 billion, just highlighting a few key points. the budget temporarily temporarily lowers the early care and education baseline by $2010 million in the two budget years. um the budget includes $11 million.35 million dollars of new student success fund funding to support um san francisco schools passed by voters and fall 2022. um and several baselines are funded above the minimum required levels and several baselines are suspended due to the size of the deficit. as of march. up next. finally this is, uh, snapshot of our reserves. the budget uses 100 and $72.3 million of reserves on the major draws included $90.2 million draw on the fiscal cliff reserve in 23 24 and that had already been used in the second year of the prior budget cycle. um $41.3 million of the federal and state emergency grant this allowance. reserve in $29.5 million of business tax stabilization reserve. um in addition, the budget makes required deposits to the general reserve, 2% and 2.25% of projected general fund revenue and the two budget years as specified and administrative code 10.60. and finally, the budget maintains a balance of $380 million in the economic stabilization reserves, which is our combined rainy day in budget stabilization reserve and as i mentioned earlier, the city is not eligible to deposit or withdraw in the budget period. um so i think that's it. um, you have any questions? happy to answer them. thank you. i just want to quickly point to the summary that you have and i just want to emphasize that and try to die deeper into that is that, um here it talks about, you know the budget and really how we're been balancing this budget. um both this year, and next is the fact that we actually are drawing on available reserve. um, and that. i just want to make sure i understand it correctly. so while is maybe true that in two fiscal years from now we will be reducing. you know some of the stuff that we're doing right now in this budget, or the mayor's proposed budget will lead us in the space in two fiscal years from now. um that likely we have just about $500 million deficit. but even then that really require us to end in that space actually really also means that the proposed budget is using approximately 43% of our reserve . so it's 620 million out of the $1.4 million. um yeah, the $620 million use of reserve. that's over the period from 2018 19 through 24 25 the budget. the two year budget uses 100 72 million. but since the pandemic hit we've used um $620 million. and so then that means like in the two year two fiscal years from now we're down to half of that. $1.4 billion reserve. roughly half that's correct. that could carry us our form for another. if we continue this pattern since the pandemic um, if we say we're going to use up all our reserve, um as the current rates of spending, um what is the projection that were does that am i am i understanding correctly? does that mean that actually could carry us out for the next? with the remaining of the reserve. if we want to draw it down to zero, like no reserve at all that kind of carry us for another four fiscal years. um thanks for the question. we haven't done the exact analysis for that. um and i guess there's a couple things first in the kind of pandemic times there was. it wasn't just the reserves that balance the budget. there was also oh, gosh . almost a billion dollars. i think of arpaio and crf monies from the federal government. so disaster relief monies that kind of bailed out the city a bit or not bailed out but helped to balance the budget. um and i know there were other one time sources in that period. um and then the second comment i'd make is that, um, the some of these reserves, especially the economic stabilization reserves, have very specific withdrawal requirements, so revenue has to decline year over year in order to draw on them. um so i don't know we'd have to. we'd have to do the analysis to know how much how that could, how we could deplete all of our reserves. i yeah, i appreciate that, because i just i think that there's a lot of, uh, general public trying to understand. you know, when someone comes to me and asked me about well, how much is in the reserve? how do you tap into reserve? i just wanted to have a quick conversation about while we have reserves. there are different kinds of categories different ways to draw them and different threshold. and so i just want to be on the record about that about just specifically armed reserve. if i may, madam share just at a very high level. the proposed budgets draws on the reserve would leave the city with about $800 million in reserves at the end of the two year period, but not all those reserves would be available for structural problems after that, because approximately half of them 400 roughly $400 million, a rainy day reserves that can only get withdrawn effectively a foreigner recession. and so if we're we wouldn't be eligible to draw those given the revenue forecasts we're looking at here. um and if we were eligible to withdraw than that $500 million structural gap will be much higher. um so that's about half of the reserves are held for that purpose, leaving about 400 million and of that 400 million roughly 100 and 50 million is the required general reserve that has to be budgeted each year to absorb the shocks that happened within a given fiscal year. so that leaves would leave us with about $250 million of the 800 million at the end of the two year period. that mayors and boards in the future could choose to draw down to kind of softly more softly land given that $500 million forecast and i also want to add to like one of the reasons why some of the another reason, i think, um carol, you add. ms liu has also mentioned and you're welcome to confirm this is that one of the reasons another reason that we're able to land where were are at in terms of a balanced budget also is because roughly a $1 billion of federal like funding and support, so it's not only that we're dipping in travel reserve, where actually also are getting this just a large amount. i'm president amount that we would never have before from the federal government's that actually help us through the next to last fiscal years and next to that's absolutely correct. the heavy reliance on one time solutions that we reference the biggest single piece of that is federal revenue that we hope to continue to receive as reimbursement from fema. you have reserved draws, and then there's other one time solutions proposed in the mayor's budget, including some of the fund shifts, for example, that have been discussed and will be discussed. um and other and lastly, the other big piece of one time solution just to highlight is that the mayor's proposed budget reverts approximately $120 million in projects that were appropriated in prior year and uses those balances on a one time basis to balance the budget. so that means not only that we're having the federal unprecedented federal, um money and then we are dipping into our reserve. but it also that roughly $128 million of. in her words, in the mayor's words, unspent money that we now keep as not to send it out the door in order to balance it it for this at least this and next fiscal years. um would you categorize than you know, two fiscal years from now like this. the city and county of san francisco and general speaking like we're going to face of unprecedented like challenges if we do not like solve the existing structural. issues that we have with our budget as we talked about in the five year forecast that are three offices published, um you know we have budget problems right in front of us. that's the two year forecasts that you're grappling with right now is aboard. but structurally. after that deficits grow in two years 34 and five absent correction. um and so i do think budgets are going to get progressively harder for the next several years. it actually won't be two years from now that we address this because this time next year you'll be planning a two year budget. that incorporates that second year. and that that the beginning of that kind of structural gap could you help me? understand what structural what do you mean by structural gaps. i mean, in the forecast that in every year of the forecast, revenue is growing more slowly than expenditures. um and then, additionally, one time solutions that have helped carry the city this point through the pandemic and our recovery are going to be exhausted. and that means that you have kind of a growing imbalance each year. between the amount of money the city is taking in that year and the amount of money going out that year and so those will take ongoing corrections as we go. through that cycle. to the extent we use one time solutions in a given year to carry us it helps in that year, but it leaves a bigger step to take the year after, um as we work through the cycle, so i do it again. the economy is growing here in san francisco, and i was standing some of the news you might pick up these days. um but it's growing slowly. um, and we don't expect that and we expect that that will continue to drive budget challenges for the city for several years. thank you. controls and found. i don't think that's the news that any service cisco wants to hear, but i think that's the reality that we must face. thank you. i with that. i don't see any names on the roster. uh kind of depressing anyways, to continue with this. not that way. i think we've been hearing this for the last six months. i think this body understands that we've been having this ongoing conversation that the three months and the six months and the nine months report, i think that it's the reason why my colleagues are just we understand. we understand with that. let's go to public comment, mr clark thank you, madam chair members of the public who wish to speak honda controllers. revenue letter. um and our joy next impression to line up to speak now for those who have joining those remotely and haven't already done so press start three to enter the speaker line , and for those already in the queue, police continue to wait until the system indicates you have and then muted and they will be second to begin your comments. saying that one person speakers here in the chamber miss second life. it looks like we have one color. if he could meet that person, please. good morning, david pill people so first two quick housekeeping items. the committee packet in legislative for this item one is actually the packet for item two. so perhaps i could get fixed at some point and to chair chan. thank you for clarifying the expectations for today. in terms of sequence. i'm not sure that budget and finance is going to start to it, maybe sometime thereafter. but if we're walking through things in sequence that helpful. including public comment on the budget, which is unusual for today, but i appreciate that that may happen on the controllers revenue letter. i appreciate the detailed discussion. i think it's incredibly helpful. um i agree that risks here include economic recovery, including the future of downtown hotel, office and retail. plus federal and state revenues, in part due to the delay on the income tax deadlines for both federal and state. i think that in the future we should carefully review the baselines and set asides with more consistent language. um. particularly around triggers. which varies for a variety of reasons. and finally, i agree that the projections are reasonable, but i would underscore the discussion you just had on the reliance on volatile sources and the structural issues with the imbalance between revenue growth and expenditure growth. um all of those are challenges going forward. thanks very much for listening. take it to pill paul for comments. yeah. and madam chair to complete her cue. thank you see no more public comments. public comment is now close. and i will like to file this. i would like to make the motion to file this hearing 20 a second. second by vice chairman delman and roll call, please. and on that motion, seconded by vice chairman roman that this hearing be heard and filed, vice chairman norman mental men i member selfie. suffer. remember on it. ron and i remember walton walton. i chair chan. i have hobos. thank you in the motion passes. and mr clark, could you please call item two and three together? yes items two and three are the proposed budget and appropriation and proposed salary ordinance respectively. for the fiscal years ending june 30th 2024 and june 30th 2025 item two is the ordinance appropriating all estimated receipts and all this estimated expenditures for departments of the city and county as of june. 1st 2023 and item number three is the ordinance and numerator positions in the annual budget and appropriation ordinance. continuing creating or establishing these positions enumerating and including there in all positions created by charter or state law, for which competitions are paid from city and county funds appropriated in the annual appropriation ordinance authorizing appointments or continuation of appointments there to specifying and fixing the compensations and work schedules thereof. and authoring appoint authorizing employment

walton be excused until those their arrival. the vice chairman, gentlemen, i'm member sophie. suffer. you remember running. run a knight chair, champ. we have four eyes with member walton excused. thank you and the motion passes. and with that, um. i would like to quickly explain how today's agenda will run of starting from item two and onwards. we will be taking budget presentation from each city department in the order listed on the agenda you see today, uh and then some departments will have additional legislation also known as trailing legislation titled they're, actually, they're department budget. um, and so we're going to go through that. um but so when each city department that has also the trailing legislation that comes with it will also be called at the same time, a company that city department because of the trail legislation. those trail legislation will require and allowing us to open for public comment with those items. so um, of course, those chill items also have the budget and legislative analyst's report so we'll have the department, uh, presentation for their budget and then the trailing look. gestation presentation and then go to the blog report. then we can go into questions and comments and then go to public comments for those legislation. and so with that, um mr clark, please call item number one. yes madam chair item number one is a hearing to discuss the controllers. fiscal years 2023 to 2024 and 2024 2025, or revenue letter and controllers discussion have the mayor's proposed budget. how members of the public who wish to provide comment on this hearing should call for 156550001. today's meeting ideas to 5910926245. then press pound twice. and if you haven't already done so they'll start three lined up to speak. he promptly and to get that you have raised her hand. and when the system indicates you're having and muted you may begin your comments. madam chair. thank you, and we have the controller. hi we have the controller to present this item. thank you. good morning, madam chair members of the committee. ben rosenfield city controller. um, as you're aware, the charter requires the controller to review the mayor's proposed budget and provide public commentary on our findings of the reasonableness of the revenue assumptions in them. additionally the board of supervisors and mayors and mayor over time, have created additional reporting requirements on things like reserves and baselines and other compliance questions. um we rolled this analysis into a document, which we call it referred to as the revenue letter. we published it earlier this week, and it's available on our website. um and we can very briefly talk through it here today. there you go. okay. next slide, please. so i will very briefly open with the summary, and then i'll turn the presentation over to carol lu are citywide revenue manager to talk through many of the details in the report at a high level, we worked very closely with the mayor's office on the preparation of the revenue forecast in this budget , so we do find that it's reasonable. generally speaking that that economic forecast i assumes what we've been experiencing in the current year. continued slow economic recovery here in san francisco, although not yet back to the level that we were at prior to the pandemic. you see that economic growth translated until most of our economically sensitive taxes, with the big exception being the persistence of remote work and the impact that's having as a drag on our economy and uncertain tax revenues. we know that the budget is heavily balanced on one time solutions. um and that means that we should expect a lot of significant structural budget gap when we begin next year's budget process are preliminary estimate would be approximately $500 million shortfall for the year that lies just outside of the two year budget. that's here in front of you. um and then, lastly, as has been true through throughout the pandemic and recovery we need under remember that the budget is a plan. um and that circumstances will change as we go through it, and it will take active monitoring by our office and active management by the mayor and the board. in the 12 months and 24 months ahead. so that very high level opening alternate over to carol liu to go through some of the details. i'm excited. all right. um so key findings of the report, um, tax revenues or tax projections are growing. but slowly, um, has been mentioned, um in that drag is related to the impact of remote office work on activity in the city. um adjusting for rate changes. many of the economically sensitive taxes are projected to remain below pre pandemic levels, um, in the budget period, including business sales, hotel and transfer tax. um one time solutions were critical to balancing and they included $405 million of fund balance, which included $117.2 million of prior year. d appropriations. um $250 million of fema reimbursements. $172.3 million of reserve draws. $125.9 million of temporary fund shifts, and that adds up to about a billion dollars in the two year budget. um as mentioned reserves are used to balance the budget, but the city is not eligible to withdraw or deposit into the economic stabilization reserves, so those balances remain, and by the end of the two year budget, the city will have used a little bit more than 40% of its pre pandemic reserves to support ongoing operations. next slide. um this budget makes some progress towards the structural budget gap identified in the march update to the five year plan. at that time, the 25 26 deficit, which is the third year the year after the two year budget, it was forecasted to be $724 million. but given the solutions proposed in the mayor's budget, the shortfall in 25 26 appears to be over $500 million um the final budget will require active monitoring and management given the economic and financial risks. um these risks include slowing economic recovery or potentially recession delays in the re certification of laguna honda hospital and risks to state and federal revenue streams. um at the state level, they're likely to, you know, the state is likely to face the same kind of economic pressures, the city faces and um and that could result in potential cuts to cities and counties. at the federal level. our largest risk is related to the pace and size of reimbursements from fema. we've received about 40% of the total reimbursements that we are anticipating. next one. there are several notable legislative proposals assumed in the budget . that impact revenue. um the first are three business tax proposals, which, um, with the total all funds, impact of $31.8 million in fiscal year 23, 24 and $38.8 million in 24 25. so those three proposals are the commercial rents tax deduction for sub lessers. the impact is $17 million per year. the delay in grocery seats tax increases for certain businesses. the impacts there are 10.4 million and 10.6 million in the budget years and tax credit for new businesses locating into the city 4.4 million in the first year and 11.2 in the second year. so all of that's assumed in the forecast. um second, there are a number of voter adopted spending mandates that the mayor's budget office must adhere or that the final budget must adhere to, um, and those are met with temporary modifications. um to the early care and child early care and education baseline as well as changes in spending categories to the our city. our home fund, which is funded by the homelessness, grocery seats, tax. um and then, also important to note is that a number of newer baselines have provisions to suspend growth in the baseline if the deficit reported in the march 5 year financial plan exceeds a certain threshold . this threshold was met for four baselines and growth is assumed to be suspended in the budget for those baselines. um and finally another piece of legislation that increases the minimum compensation rates for nonprofit and public entities over a period of time in the budget funds. those increases next. so they all funds budget is $14.6 billion in the two budget years, and the general fund is about half of that 6.9 billion in fiscal year 23 24 and 7 billion in 24 25 and the most significant source of the junk into the general fund is our local tax revenue. um, of that we've shown the biggest sources on this table property, business , hotels, sales transfer and executive compensation, taxes and by 24 25. these taxes will make up about $4 billion of the general fund. so when you look at the growth of these taxes, pre pandemic 18 19 2 now or two through the budget years, 24 25 . you can see that our sources are expected to grow 11.5% over six years and on its face that that seems okay. but the point we want to make here is that the sources with asterisks next to them these how these are either new sources or have had rate increases post pandemic next slide. um once you exclude the impact of those three asterisks policy changes, growth falls or sorry of those three taxes growth falls to a very meager 4.1% over six years and in fact adjusting for rate changes, business and transfer tax are still performing worse in the budget years than they had before the pandemic. and the three policy changes i'm referring to are the 2020 prop f um, which expanded and changed that business tax rates 2020 prop i, which doubled transfer tax rates on the largest transactions and 2020 prop l, which taxed executive compensation. next. so here's a graphical look at some of our most economically sensitive taxes starting from 607 through the budget forecast and the dotted vertical line shows where we are estimating what our estimates are for budget. um and all of the lines you can see drops in fiscal year 2021. although transfer tax it's delayed, it's dropped his delayed, um until the current year 22 23, and then you can see the trajectory of the recovery that's being forecasted in the budget. i'm next. i'm a bit more detail about what we're assuming and property tax roll growth is assumed, um, of 4% and 2.5% a bit less than a million dollars of property tax is assumed to be diverted to support various tax increment financing districts, including redevelopment projects and infrastructure financing districts. and then we're assuming refunds of 64 million and 103 million in the two budget years will be paid when the assessment appeals board makes determinations on reductions, and this is where we capture our assumptions about reductions and values for various property types. um and business tax. this is just this is really referring to the general funds, grocery seats tax . we're assuming underlying growth of zero and 1% with remote and hybrid work continuing indefinitely. and as previously mentioned, we assume the property tax changes being proposed or passed. next. hotel taxes assumed to continue its recovery in the budget period after a more than 90% drop in fiscal year 2021. hotel taxes not anticipate to recover to pre pandemic peaks until well after the budget years. um the recovery and hotel tax so far has been led by leisure travelers and their pent up demand for travel, but to fully kind of regain our position on hotel tax will need a combination of more business and international travelers and critically convention business, which is what drives up revenue through compression pricing. um and just for context in 18 19, which was an unusual peak. there are 54 conferences with over 700,000 attendees. and in the current year we've had 26 conferences with a little less than 200,000. attendees um, depicted here is revenue per available room, which is an industry indicator that correlates with hotel tax receipts. current months of taped rev. par i am through early june is about $150, and the budget assumes annual average rev. part of 100 and $78.60 in fiscal year 23 24 and about $200 in fiscal year 24 25. and i'm just for context. pre pandemic annual rev. par was closer to 250 million, so we have a ways to go. next. with remote office work and rising interest rates. transfer taxes plummeted in the current year. the budget assumes that the current year is at the bottom of transfer tax and that we will take four years of modest growth to return to a new study state by 26 27. this is the most general funds most volatile source where less than 1% of transactions drive more than 50% of revenue. um and unfortunately , those highest value transactions have stalled out recently. um this picture shows what transfer tax would have been had the current rates been, in effect all the way back to, uh, 01. and you can see a few things. um first the huge drops during the dot com bust in the great recession, um, they're huge spikes as well. um, and so that's how you can see the volatility. um and then second, the orange shows revenue generated by sales over 25 million in blue show sales below that, the smaller the low, the smaller sales stayed relatively constant compared to orange and , um what really drives the taxes. these large transactions. thanks. alright so the comptroller's office is required to measure and report on various voter adopted spending requirements and we discussed 17 requirements in our report totally more than $2 billion, just highlighting a few key points. the budget temporarily temporarily lowers the early care and education baseline by $2010 million in the two budget years. um the budget includes $11 million.35 million dollars of new student success fund funding to support um san francisco schools passed by voters and fall 2022. um and several baselines are funded above the minimum required levels and several baselines are suspended due to the size of the deficit. as of march. up next. finally this is, uh, snapshot of our reserves. the budget uses 100 and $72.3 million of reserves on the major draws included $90.2 million draw on the fiscal cliff reserve in 23 24 and that had already been used in the second year of the prior budget cycle. um $41.3 million of the federal and state emergency grant this allowance. reserve in $29.5 million of business tax stabilization reserve. um in addition, the budget makes required deposits to the general reserve, 2% and 2.25% of projected general fund revenue and the two budget years as specified and administrative code 10.60. and finally, the budget maintains a balance of $380 million in the economic stabilization reserves, which is our combined rainy day in budget stabilization reserve and as i mentioned earlier, the city is not eligible to deposit or withdraw in the budget period. um so i think that's it. um, you have any questions? happy to answer them. thank you. i just want to quickly point to the summary that you have and i just want to emphasize that and try to die deeper into that is that, um here it talks about, you know the budget and really how we're been balancing this budget. um both this year, and next is the fact that we actually are drawing on available reserve. um, and that. i just want to make sure i understand it correctly. so while is maybe true that in two fiscal years from now we will be reducing. you know some of the stuff that we're doing right now in this budget, or the mayor's proposed budget will lead us in the space in two fiscal years from now. um that likely we have just about $500 million deficit. but even then that really require us to end in that space actually really also means that the proposed budget is using approximately 43% of our reserve . so it's 620 million out of the $1.4 million. um yeah, the $620 million use of reserve. that's over the period from 2018 19 through 24 25 the budget. the two year budget uses 100 72 million. but since the pandemic hit we've used um $620 million. and so then that means like in the two year two fiscal years from now we're down to half of that. $1.4 billion reserve. roughly half that's correct. that could carry us our form for another. if we continue this pattern since the pandemic um, if we say we're going to use up all our reserve, um as the current rates of spending, um what is the projection that were does that am i am i understanding correctly? does that mean that actually could carry us out for the next? with the remaining of the reserve. if we want to draw it down to zero, like no reserve at all that kind of carry us for another four fiscal years. um thanks for the question. we haven't done the exact analysis for that. um and i guess there's a couple things first in the kind of pandemic times there was. it wasn't just the reserves that balance the budget. there was also oh, gosh . almost a billion dollars. i think of arpaio and crf monies from the federal government. so disaster relief monies that kind of bailed out the city a bit or not bailed out but helped to balance the budget. um and i know there were other one time sources in that period. um and then the second comment i'd make is that, um, the some of these reserves, especially the economic stabilization reserves, have very specific withdrawal requirements, so revenue has to decline year over year in order to draw on them. um so i don't know we'd have to. we'd have to do the analysis to know how much how that could, how we could deplete all of our reserves. i yeah, i appreciate that, because i just i think that there's a lot of, uh, general public trying to understand. you know, when someone comes to me and asked me about well, how much is in the reserve? how do you tap into reserve? i just wanted to have a quick conversation about while we have reserves. there are different kinds of categories different ways to draw them and different threshold. and so i just want to be on the record about that about just specifically armed reserve. if i may, madam share just at a very high level. the proposed budgets draws on the reserve would leave the city with about $800 million in reserves at the end of the two year period, but not all those reserves would be available for structural problems after that, because approximately half of them 400 roughly $400 million, a rainy day reserves that can only get withdrawn effectively a foreigner recession. and so if we're we wouldn't be eligible to draw those given the revenue forecasts we're looking at here. um and if we were eligible to withdraw than that $500 million structural gap will be much higher. um so that's about half of the reserves are held for that purpose, leaving about 400 million and of that 400 million roughly 100 and 50 million is the required general reserve that has to be budgeted each year to absorb the shocks that happened within a given fiscal year. so that leaves would leave us with about $250 million of the 800 million at the end of the two year period. that mayors and boards in the future could choose to draw down to kind of softly more softly land given that $500 million forecast and i also want to add to like one of the reasons why some of the another reason, i think, um carol, you add. ms liu has also mentioned and you're welcome to confirm this is that one of the reasons another reason that we're able to land where were are at in terms of a balanced budget also is because roughly a $1 billion of federal like funding and support, so it's not only that we're dipping in travel reserve, where actually also are getting this just a large amount. i'm president amount that we would never have before from the federal government's that actually help us through the next to last fiscal years and next to that's absolutely correct. the heavy reliance on one time solutions that we reference the biggest single piece of that is federal revenue that we hope to continue to receive as reimbursement from fema. you have reserved draws, and then there's other one time solutions proposed in the mayor's budget, including some of the fund shifts, for example, that have been discussed and will be discussed. um and other and lastly, the other big piece of one time solution just to highlight is that the mayor's proposed budget reverts approximately $120 million in projects that were appropriated in prior year and uses those balances on a one time basis to balance the budget. so that means not only that we're having the federal unprecedented federal, um money and then we are dipping into our reserve. but it also that roughly $128 million of. in her words, in the mayor's words, unspent money that we now keep as not to send it out the door in order to balance it it for this at least this and next fiscal years. um would you categorize than you know, two fiscal years from now like this. the city and county of san francisco and general speaking like we're going to face of unprecedented like challenges if we do not like solve the existing structural. issues that we have with our budget as we talked about in the five year forecast that are three offices published, um you know we have budget problems right in front of us. that's the two year forecasts that you're grappling with right now is aboard. but structurally. after that deficits grow in two years 34 and five absent correction. um and so i do think budgets are going to get progressively harder for the next several years. it actually won't be two years from now that we address this because this time next year you'll be planning a two year budget. that incorporates that second year. and that that the beginning of that kind of structural gap could you help me? understand what structural what do you mean by structural gaps. i mean, in the forecast that in every year of the forecast, revenue is growing more slowly than expenditures. um and then, additionally, one time solutions that have helped carry the city this point through the pandemic and our recovery are going to be exhausted. and that means that you have kind of a growing imbalance each year. between the amount of money the city is taking in that year and the amount of money going out that year and so those will take ongoing corrections as we go. through that cycle. to the extent we use one time solutions in a given year to carry us it helps in that year, but it leaves a bigger step to take the year after, um as we work through the cycle, so i do it again. the economy is growing here in san francisco, and i was standing some of the news you might pick up these days. um but it's growing slowly. um, and we don't expect that and we expect that that will continue to drive budget challenges for the city for several years. thank you. controls and found. i don't think that's the news that any service cisco wants to hear, but i think that's the reality that we must face. thank you. i with that. i don't see any names on the roster. uh kind of depressing anyways, to continue with this. not that way. i think we've been hearing this for the last six months. i think this body understands that we've been having this ongoing conversation that the three months and the six months and the nine months report, i think that it's the reason why my colleagues are just we understand. we understand with that. let's go to public comment, mr clark thank you, madam chair members of the public who wish to speak honda controllers. revenue letter. um and our joy next impression to line up to speak now for those who have joining those remotely and haven't already done so press start three to enter the speaker line , and for those already in the queue, police continue to wait until the system indicates you have and then muted and they will be second to begin your comments. saying that one person speakers here in the chamber miss second life. it looks like we have one color. if he could meet that person, please. good morning, david pill people so first two quick housekeeping items. the committee packet in legislative for this item one is actually the packet for item two. so perhaps i could get fixed at some point and to chair chan. thank you for clarifying the expectations for today. in terms of sequence. i'm not sure that budget and finance is going to start to it, maybe sometime thereafter. but if we're walking through things in sequence that helpful. including public comment on the budget, which is unusual for today, but i appreciate that that may happen on the controllers revenue letter. i appreciate the detailed discussion. i think it's incredibly helpful. um i agree that risks here include economic recovery, including the future of downtown hotel, office and retail. plus federal and state revenues, in part due to the delay on the income tax deadlines for both federal and state. i think that in the future we should carefully review the baselines and set asides with more consistent language. um. particularly around triggers. which varies for a variety of reasons. and finally, i agree that the projections are reasonable, but i would underscore the discussion you just had on the reliance on volatile sources and the structural issues with the imbalance between revenue growth and expenditure growth. um all of those are challenges going forward. thanks very much for listening. take it to pill paul for comments. yeah. and madam chair to complete her cue. thank you see no more public comments. public comment is now close. and i will like to file this. i would like to make the motion to file this hearing 20 a second. second by vice chairman delman and roll call, please. and on that motion, seconded by vice chairman roman that this hearing be heard and filed, vice chairman norman mental men i member selfie. suffer. remember on it. ron and i remember walton walton. i chair chan. i have hobos. thank you in the motion passes. and mr clark, could you please call item two and three together? yes items two and three are the proposed budget and appropriation and proposed salary ordinance respectively. for the fiscal years ending june 30th 2024 and june 30th 2025 item two is the ordinance appropriating all estimated receipts and all this estimated expenditures for departments of the city and county as of june. 1st 2023 and item number three is the ordinance and numerator positions in the annual budget and appropriation ordinance. continuing creating or establishing these positions enumerating and including there in all positions created by charter or state law, for which competitions are paid from city and county funds appropriated in the annual appropriation ordinance authorizing appointments or continuation of appointments there to specifying and fixing the compensations and work schedules thereof. and authoring appoint authorizing employment

and i remember walton walton. i church and i chan i. we have five eyes. thank you. and the motion passes so with that colleagues, we're moving on . and we have already called item four. so we're going to item number. five yes. item number five is an ordinance amending the business and tax regulations code to waive retroactively to july 1st, 2023, certain first year permit license and business registration fees. pardon for specified small businesses that newly formed or that opening new location and refunding any waive fees that have been paid to the city. how members of the public wish to speak on this item and are joining us remotely a press star. three if you wish to enter the speaker line and please continue to wait until the system indicates you have been muted in your signal to begin your comments. madam chair. thank you. and i'm not sure who's here to present for item number five. first year free. yes i. i can say something. i think the reason remind me tell me if i'm right. but we continued this because it was only funded for one year and not two. my preferen