City of Sacramento Page 1
BUDGET AND AUDIT COMMITTEE
Mayor Darrell Steinberg, Chair
Eric Guerra, Vice Chair, District 6
Rick Jennings, II, District 7
Mai Vang, District 8
COMMITTEE STAFF
Mindy Cuppy, City Clerk
Howard Chan, City Manager
Jorge Oseguera, City Auditor
Matthew Ruyak, Assistant City Attorney
Leyne Milstein, Assistant City Manager
Emily A. Combs, Finance Director
Budget and Audit Committee
City Hall-Council Chamber
915 I Street, 1st Floor
Published by the Office of the City Clerk
(916) 808-5163
SUPPLEMENTAL MATERIAL
For the Meeting of: Tuesday, February 8, 2022, at 3:00 p.m.
Agenda Item: Discussion Item 1
1. Fiscal Year (FY) 2021/22 Midyear Review
File ID: 2022-00172
Location: Citywide
Recommendation: Pass a Motion: 1) accepting the FY2021/22 Midyear Review; and 2) forwarding to the City Council for approval.
Contact: Mirthala Santizo, Budget Manager, (916) 808-5078, [email protected]
; Emily Combs, Director of Finance, (916) 808-7914,
[email protected], Department of Finance
Description of Attached:
1) Memorandum from Mayor Darrell Steinberg regarding the Midyear Review
CITY HALL
915 I STREET, Fifth Floor
SACRAMENTO, CA
95814-2672
PH 916-808-5300
FAX 916-264-7680
[email protected]
OFFICE OF THE MAYOR
Darrell Steinberg
Mayor
CITY OF SACRAMENTO
CALIFORNIA
February 3, 2022
Dear City Council Colleagues,
As we approach the beginning of our third year in a global health pandemic, I would like to start by thanking each one of you for your tremendous leadership and public service on behalf of our community.
I am proud to say, that even during these extraordinary times, our city has invested more than it ever has in its long history on inclusive economic development. Whether it’s the well over $100M of new resources that have been allocated because of the second half-cent of Measure U, the $89M of federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) funding, or the vast majority of our on-going $112M strategy for the American Rescue Plan Act (ARP), we have more than met the mark of investing substantial new resources back into our own community.
The Midyear Budget serves as yet another opportunity we have to utilize one-time resources to further these same goals.
I support the City Manager’s recommendation, that includes setting aside funding for our important new labor contracts and paying off our debt service and parking fund liabilities. Additionally, I support his expansion of the Department of Community Response (DCR), which is an absolute necessity for us as we move forward with our homelessness, housing, and alternative response efforts.
I recommend that we build off and add to the City Manager’s solid proposal by investing an additional $27M of one-time resources directly into our community.
Our City Manager proposes directing nearly $50M of one-time resources into three years of additional reserves. I propose that we set aside nearly $23M for additional reserves, while investing the other $27M in urgent community priorities. Setting aside almost $23M will allow the city to have a fully balanced budget for FY 22/23.
I propose spending our $27M of one-time Midyear resources in the following three key focus areas:
1) Affordable Housing and Homelessness ($14.8M)
Currently there is no bigger challenge facing our city and our state than the issues of affordable housing and homelessness. We have put considerable time and effort into both of these areas, and I remain confident that some important breakthroughs are near, but only if we continue to strategically invest with our partners to make our hard work a reality.
Replenishing the Affordable Housing Trust Fund ($10M)
At this same time last year, we ambitiously funded our Housing Trust Fund with over $30M of one-time resources. This was an unprecedented action and led to multiple affordable housing projects being funded for the first time and the creation of a new anti-displacement fund for our exciting new Aggie Square development.
Though we don’t have the same magnitude of resources to invest this year, I still believe this is the top priority for us as a city at Midyear. Additionally, the Housing Trust Fund was utilized to support other important non-related city causes (e.g. city organizational support, the Fire Department diversity plan, etc.) during the course of the last year with the promise that it would be replenished. To that end, I recommend replenishing the Housing Trust Fund with $10M.
Department of Community Response CBO Outreach ($2.8M)
DCR is doing vital work, and we need to expand its capacity to reach unhoused people and connect them with services much faster than can be accomplished with its current, limited staff. Community-based organizations (CBOs) also play an important role in this mission because they are most familiar with the specific, differing needs of people experiencing homelessness in different parts of the city. Today, most CBOs lack the capacity to do sustained outreach. I propose that we allocate $2.8M to DCR to fund CBOs in each Council District so they can hire qualified outreach workers to partner with DCR staff. Additionally, I would like to prioritize our city’s most underserved areas, such as Councilmember Loloee’s District 2.
This allocation would fully complement the 17 new DCR positions proposed by the City Manager and allow us to conduct a full, multi-disciplinary response including peer specialists with lived experience and trained social workers to conduct mental health and substance abuse assessments.
Sacramento Steps Forward Coordinated Access System ($1M)
The current system for connecting people experiencing homelessness with services, shelter or housing is fragmented and needlessly difficult to navigate. Sacramento Steps Forward (SSF) has proposed a Coordinated Access System for jurisdictions in Sacramento County that would use 211 as a 24/7 crisis hotline for homelessness and coordinate access into city and county respite centers, safegrounds, shelters and increased diversion (“problem solving”) resources.
Having real time data on shelter availability will allow navigators to make crucial decisions on the ground. SSF puts the total cost of the system at approximately $3M for the first year.
I propose that the city allocate $1M from Midyear for our contribution to the creation of the Coordinated Access System, contingent on the County and SSF committing matching contributions. I would like to acknowledge Councilmember Harris for helping lead this important effort with our partners.
Additional Women’s and Children’s Shelter Resources ($1M)
As we have done in years past, I would like to recommend $1M to continue to assist women and children experiencing homelessness in our city. These funds have supported local non- profits doing incredible work in our community. I would like to thank Vice-Mayor Ashby for championing this cause and for the Council’s continued support for this critical funding.
2) Economic Development Initiatives ($3.2M)
Fortunately, with our ARP funding earlier this year we we’re able to invest boldly in “clean and safe” activities, several of our disadvantaged business corridors, as well as into other important small business priorities. With these new one-time resources, I believe we can also seed some of our city’s biggest economic development initiatives in a strategic and important manner.
La Familia Opportunity Center ($2M)
The La Familia Counseling Center (LFCC) Opportunity Center is part of a larger neighborhood collaborative plan that seeks to connect the Franklin neighborhood with our city’s inclusive economic development initiatives, and to build critical infrastructure to improve public health and well-being in South Sacramento and beyond. The planned $8-10M first phase of the Opportunity Center will centralize community health and workforce development efforts and create a center of hope and opportunity for community members who live in the most disadvantaged and marginalized communities throughout our city. The Opportunity Center will provide job training and placement, small business resources, and supportive services to lift up this important community.
This $2M allocation will assist LFCC with property acquisition, site readiness work, and overall project support. I believe this funding will help us leverage additional public investment including potentially from our state partners.
California Mobility Center ($1M)
I propose allocating $1M to the California Mobility Center (CMC) to continue and expand its workforce development training for clean mobility and advanced manufacturing. The CMC has successfully established workforce development pathways that provide students and Sacramento residents opportunities to fulfill advanced manufacturing roles through a combination of hands-on training and internship opportunities. Through the network of regional partners that the CMC has established, residents from diverse and underserved communities along with students from Sacramento State University and the local community college system have had the opportunity to upskill into roles that are in demand by clean mobility companies and advanced manufacturers.
The CMC workforce program has identified advanced manufacturing machinery and equipment for its ramp-up factory that is in demand by industry but is currently unavailable for training and project work in Northern California. This funding will also enable the CMC to purchase the equipment, adding significantly to the capabilities of the region to meet the current and future demand of workforce for the high-growth clean mobility industry. This
equipment will enable the workforce pathway program to expand, train and upskill students and residents in key growth areas. Mayor Pro Tem Guerra has led these efforts on behalf of our city, and I would like to acknowledge his great work on this initiative.
Winn Park/Latino Center of Art & Culture ($200K)
After years of hard work, including past city and state funding, the Latino Center of Art & Culture (LCAC) is very close to completing the renovation of the Winn Park Building in Midtown that will serve as a new, dynamic public gathering space and enable the growth of the artistic and cultural contributions of our city’s valued Latino community. This $200K contribution will allow LCAC to complete all necessary tenant improvements so they can open this exciting new community amenity later this year.
3) Youth and Inclusive Community Investment ($9M)
In recent years, the City Council has really leaned into prioritizing funding for our youth, as well as investing in our underserved neighborhoods and communities. I believe the Midyear Budget provides us another great opportunity to do just that.
Continued Investment in Youth ($5.5M)
Last year, the City Council allocated additional funding at Midyear to provide increased youth services and programming to address unmet needs throughout our city. I would like to thank Councilmember Schenirer for leading a very successful new process with the help of city staff.
This year I propose setting aside $5.5M to build on that excellent work.
Councilmember Vang will be bringing forward a separate youth investment proposal to the Council that will further define the process and approach for the expenditure of these funds.
Marina Vista/Alder Grove Neighborhood Revitalization ($2.5M)
Unfortunately, we saw multiple tragedies occur last year in the Marina Vista/Alder Grove neighborhood. We must act now to revitalize this important community.
I recommend we set-aside $2.5M from Midyear to immediately begin enhanced youth services and parks related programming, as well as additional resources for expanded broadband access in the area. All youth programming will be consistent with the Citywide Youth Development Plan. This initiative will be led by Councilmember Valenzuela and the City Manager’s Office.
Additionally, I want to publicly support the Councilmember’s and community goal of making a total commitment of $5M for this important effort, and I pledge to work with her to find other funding sources to make that a reality.
Additional Resources for our City’s Racial Equity Initiatives ($500K)
To continue the City’s commitment of establishing racial equity in culture and policy, I am proposing an additional $500K be allocated to support our ongoing initiatives:
• $50K to develop a citywide racial equity virtual resource center that provides a free and accessible public record of online diversity, equity, and inclusion (DEI) training materials and educational resources anyone may access and use.
• $100K of one-time funding to support the development of a Racial Equity Council and network of community-based organizations in line with the Sacramento Centered On Racial Equity (SCORE) initiative as presented to the Racial Equity Committee on January 25, 2022.
• $150K to provide grants to local, culturally sensitive and trauma informed mediators, facilitators, mental health professionals and organizations so they may provide free and low-cost support to community members.
• $200K to support the creation, development, and work of a community Sacramento Municipal Reparations committee over the next several years.
I would like to sincerely thank Racial Equity Committee Co-Chair Councilmember Vang for her bold leadership, as well as Councilmember Jennings and Schenirer for serving on this Committee.
FUEL Network Set-Aside ($500K)
As we have done over the past several years, I recommend setting aside $500K for the FY 22/23 City Budget for the Sacramento Family Unity, Education, and Legal (FUEL) Network to continue providing crucial services to our immigrant and refugee populations, through the form of legal representation, social services, mental health services, education, and continued coordination of the 50+ local organizations that now form the coalition created by the FUEL Network. Without the FUEL Network, these vital services would not be provided to Sacramento’s large and diverse immigrant and refugee population.
I am excited to embark on these initiatives with you as we also affirm our permanent commitment to expanding the city’s core priorities. We are a city that can do it all, and we have demonstrated that ability even during these challenging last few years. I would like to thank our City Manager, Charter Officers, and our entire city team for their incredible work and service. As always, I look forward to collaborating with you on this plan and working to do our absolute best for the people of our great city.
Thank you for your time and your consideration.
Sincerely,
Darrell Steinberg
Mayor, City of Sacramento