Presentation — San Jose City Council, February 28, 2023

February 28, 2023, 11:00am to 1:00pm
1 Lee Wilcox, Assistant City Manager
Angel Rios, Deputy City Manager
Omar Passons, Deputy City Manager
Rosalynn Hughey, Deputy City Manager
Kip Harkness, Deputy City Manager
Rob Lloyd, Deputy City Manager
Dolan Beckel, Chief of Staff to the City Manager
City Council Special Meeting
Priority Setting Session 2 –
Administration Report
Agenda
2 ▪Fiscal Year 2023 – 2024 Budget Process Timeline
▪Service Delivery Framework, Staffing, Core Services and Programs ▪Mayor's Suggested Focus Areas and City Service Area (CSA) Urgent, Important, and Continuing Work
▪Mayoral Transition Committee Report Analysis
▪Next Steps
▪Feedback and Discussion
▪Public Comment
▪Adjourn to Regular Session
Fiscal Year 2023-2024 Budget Process
3 Mayoral
Transition
Committees
Council Priority-
Setting Sessions
Mayor’s March
Budget Message
and Council
Hearing
City Manager’s
Proposed
Budget
Documents
Community
Meetings and
Public Hearings
Mayor’s June
Budget Message
Hearing and
Approval
Council Budget
Adoption
Council Budget
Study Sessions
Jan.18, 2023 to
Feb. 9, 2023
Feb. 14, 2023
Feb. 28, 2023 March 14, 2023 April 26, 2023 to
May 5, 2023
May 2023 to
June 2023
May 10, 2023 to
May 17, 2023
June 12, 2023
June 13, 2023 June 20, 2023
Rules Memo
Approved and
Transition
Committees
structured around
five Focus Areas:
• Clean
Neighborhoods
• Homelessness
• Community
Safety
• Downtown
Vibrancy
• Planning and
Permitting
In accordance with
the City Charter,
the Mayor delivers
a Budget Message
that includes a
statement of fiscal
priorities for the
following fiscal
year, including any
specific additions or
reductions.

The City Council
holds a public
hearing and
approves the
Message on
Tuesday, March 14
with any revisions
or changes it
deems advisable.

This date may
move to March 21.

The City Manager
prepares and
releases the
Proposed Capital
Budget and Five-
Year Capital
Improvement
Program (Apr 26),
the Proposed
Operating Budget
(May 1), and the
Proposed Fees and
Charges Report
(May 5) that aligns
with direction
provided by
Council’s approval
of the March
Budget Message.

Community
meetings are held
throughout May
and into early June
(schedule TBD) to
review and receive
comment on the
Proposed Budget
Documents, with a
formal public
hearing scheduled
on Tuesday, May

16. Final public hearing
is held on June 12
on the Mayor’s June
Budget Message &
the Proposed
Budget Docs. City
Council approves,
with any revisions it
deems advisable,
the Mayor’s June
Budget Message on
June 13 which
includes the City
Manager’s
Proposed Budget
Docs along with any
mods as
recommended in the
June Budget
Message, including
specific Manager’s
Budget Addenda
and City Council
Budget Documents.

The Administration
provides the
documentation
necessary for the
City Council to
formally adopt and
appropriate funding
for FY 23-24 on
Tuesday, June 20.

Feb 14 – Mayoral
Transition
Committee Chairs
provided a report
read-out with follow-
on discussions and
feedback.

Feb 28 - Council will
review the
recommendation to
accept the City staff
report on the FY 23-
24 Priority Setting
and Budget Process.

Council reviews the
Proposed Budget in
depth with the
Administration from
May 10 through May

17. There will be a
Study Session for
each Operating
Budget CSA, the
Capital Budget and
Capital Improvement
Program, the Fees &
Charges Report, and
a review of the
recommended perf.
measures that align
to priorities in the
City Council-
approved March
Budget Message.
4 The City’s Service Delivery Framework
Mayor and City
Council Priorities
City Service Areas
(6)
Urgent, Important, and Continuing
City Service Area Work
Core Services
(98)
Programs
(264)
Community
Input
City Service Area - Core Service Map
5 Department Core Service List of Programs
6 Department Core Service List of Programs (cont’d)
7 Department Core Service List of Programs (cont’d)
8 Department Core Service List of Programs (cont’d)
9 City Service Areas | Sized by Personnel
Total: 6884 FTEs
(full time equivalents based on FY 2022-
2023 Operating Budget)
10 Public Safety, 2,576 Neighborhood Services, 1,379
Environment and Utility
Services, 781 Strategic Support, 771
Transportation and Aviation
Services, 589
Community and
Economic Development,
527
Strategic
Support –
Council
Appointees,
261
General Fund Base Budget Discretionary vs Non-Discretionary Discretionary
59%UAL and OPEB
Retirement
Contributions
17%
Other Non-
Discretionary and
Revenue Offset
Expenses
24%
Breakdown of the
2023-2024 Base Budget
11 Historical Perspective of the General Fund:
• Much of the City’s expense budget is non-discretionary, which cannot feasibly be immediately reduced
• T o achieve a balanced budget when facing a shortfall, the City can only reduce discretionary expenditures
• This has made budget reductions even more difficult to achieve in years past
12 FY 23-24 Mayor’s Suggested Focus Areas & CSA Urgent, Important, Continuing Work •Berryessa Flea Market
•COVID-19 Recovery
•Google’s Downtown West
Development Project
•Housing Catalyst Workplan
•Wage Theft Prevention +
Responsible Contractor
Ordinance
•Clean Energy Scaling
•Muni Regional Permit
(Stormwater)
•Sanitary & Storm Sewer
Collection / Green
Stormwater Infrastructure
•Staffing Transition (ESD +
PW)
•Water Supply Negotiations
•Animal Care and Services
•Children and Youth
Services Master Plan
•Education, Digital Literacy,
Digital Equity, & Broadband
•Park Maintenance & Capital
Improvements Maintenance
•Senior and Therapeutic
Services
•Continuity of Operations
Plan
•Disaster Resiliency:

Training Community &
Employees
•Police Redistricting
•Police Reforms
•Wildfire Protection Plan and
Evacuation Planning
•Airport New Terminal
•Airport Connector to Diridon
•BART Silicon Valley
Extension
•Community Forest (Urban
Canopy)
•Vehicle Blight
Clean Neighborhoods Community Safety Downtown Vibrancy
Homelessness Planning and Permitting
Mayor’s Suggested Focus Areas
Neighborhood Services Public Safety Community and Economic Development
Environment and Utility
Services
Transportation and
Aviation Services
CSA Urgent, Important, and Continuing Work
• Closing Racial Inequities
• Delivering Excellent Customer Service
• Driving Organizational Performance
• Making San José a Great Place to Work
• Structurally Balancing the General Fund Budget
Strategic Support/Foundational
Core Services and Programs

Analysis
Recommendations
• Feasible?
• Alternatives? (How else might the City
achieve the Outcome?)
Mayoral Transition Committee Feedback
Success Metrics for Outcomes and Recommendations
• Existing collection?
• Degree of influence?
• Disaggregated by Race/Ethnicity and Location?
• Frequency collected?
Recommendations
• Feasibility. Staff identified that 100% of transition committee recommendations could be implemented if adequately scoped and resourced.
• Alternatives. City staff proposed alternatives to a small subset of the recommendations (23%) to drive the Outcome at a similar scale.

Success Metrics
• Collection. The City needs improve the metrics collected - 51% of success metrics are currently collected as defined or by a proxy.
• Influence. The success metrics defined are highly actionable - 81% of success metrics have ‘strong’ or ‘moderate’ control by the City.
• Disaggregation - The City needs to improve the ability to disaggregate data - 29% of success metrics are currently able to be disaggregated by race/ethnicity, location, or both. Not all success metrics defined by the transition committees lend themselves to collection methods where disaggregation by race/ethnicity and/or location is possible highlighting the challenge moving forward.
• Frequency. The City needs to improve the frequency of data collection at a high enough frequency for effective decision-making - 45% of success measures are collected quarterly, monthly, or during service delivery.
13 Fiscal Year 2023-2024 Budget Process
Mayoral
Transition
Committees
Council Priority-
Setting Sessions
Mayor’s March
Budget Message
and Council
Hearing
City Manager’s
Proposed
Budget
Documents
Community
Meetings and
Public Hearings
Mayor’s June
Budget Message
Hearing and
Approval
Council Budget
Adoption
Council Budget
Study Sessions
Jan.18, 2023 to
Feb. 9, 2023
Feb. 14, 2023
Feb. 28, 2023 March 14, 2023 April 26, 2023 to
May 5, 2023
May 2023 to
June 2023
May 10, 2023 to
May 17, 2023
June 12, 2023
June 13, 2023 June 20, 2023
Rules Memo
Approved and
Transition
Committees
structured around
five Focus Areas:
• Clean
Neighborhoods
• Homelessness
• Community
Safety
• Downtown
Vibrancy
• Planning and
Permitting
In accordance with
the City Charter,
the Mayor delivers
a Budget Message
that includes a
statement of fiscal
priorities for the
following fiscal
year, including any
specific additions or
reductions.