City Council Meeting
Study Session Minutes
Fiscal Year 2024-2025 Budget Priority
Tuesday, February 13, 2024
1:30 PM
LOCATION:
Council Chambers-200 E Santa Clara Street
MATT MAHAN, MAYOR
ROSEMARY KAMEI, VICE MAYOR, DISTRICT 1
SERGIO JIMENEZ, DISTRICT 2
OMAR TORRES, DISTRICT 3
DAVID COHEN, DISTRICT 4
PETER ORTIZ, DISTRICT 5
DEV DAVIS, DISTRICT 6
BIEN DOAN, DISTRICT 7
DOMINGO CANDELAS, DISTRICT 8
PAM FOLEY, DISTRICT 9
ARJUN BATRA, DISTRICT 10
• Call to Order and Roll Call
5:47 p.m. – Study Session.
Present Councilmembers: Mahan, Kamei, Jimenez, Torres, Cohen, Ortiz, Davis, Doan, Candelas, Foley, Batra.
Absent Councilmembers: All present.
CITY COUNCIL STUDY SESSION
Purpose: To provide information for the Mayor’s March Budget Message including data related to our resident’s priorities, the Administration’s perspectives and priorities, and a discussion amongst the Mayor and City Councilmembers.
Outcome: The City Council and the Administration will have informed the Mayor about potential priorities to inform the creation of the Fiscal Year 2024-2025 Mayor’s March Budget Message.
Sarah Zarate, Director, City Manager’s Office; Lee Wilcox, Assistant City Manager, City Manager’s Office; Jim Shannon, Director, City Manager’s Office; Omar Passons, Deputy City Manager, City Manager’s Office; and Rob Lloyd, Deputy City Manager, City Manager’s Office, offered the presentation.
1. Introduction and Opening Comments
Mayor Matt Mahan reflected on the previous year’s collaborative efforts to set focused budget priorities , and emphasized the importance of continuing that approach to make measurable progress.
City Manager Jennifer Maguire previewed the session’s structure, stressing the importance of strategic focus due to limited resources, a structurally unbalanced budget, and constrained staff capacity. City Manager Jennifer Maguire also highlighted the need for shared compromise and clear expectations.
2. State and Local Resident Priorities Survey Data
Findings from various surveys were presented (including reports from the Public Policy Institute of California, the Auditor’s Annual Services Report, and Joint Venture Silicon Valley) to identify San José residents’ concerns and broader regional and statewide issues. Homelessness, affordable housing, public safety, city beautification, and police responsiveness were noted as high-interest topics. Survey data showed consistent trends over time and across demographics ; the need to stay focused on these persistent challenges was noted.
3. Preliminary General Fund Forecast and Budget Process
A general fiscal outlook was provided; the General Fund is currently structurally unbalanced and a shortfall is anticipated beginning in FY 2025-2026. Discretionary spending constraints and cost pressures were reviewed. The forecast showed slight revenue growth with escalating expenses. Jim Shannon, Director, City Manager’s Office, outlined the two-year budget development process, major deadlines, and the importance of the Mayor’s March Budget Message in shaping City priorities.
4. Administration Perspectives and Recommended Priorities
City Manager Jennifer Maguire and her executive team presented the administration’s FY 2024-2025 priorities across all City Service Areas (CSAs), aligning many with the Council’s existing focus areas.
Priorities included:
Economic Development: Incentives for downtown vibrancy, high -rise housing, and AI/manufacturing investment.
Environmental & Utility Services: Stormwater permit compliance, climate infrastructure strategy, and clean energy scaling.
Neighborhood Services: Blight removal, homelessness outreach, emergency housing, and animal care improvements.
Public Safety: 911 call modernization, a real-time operations center, recruitment, and emergency services reform.
Transportation & Aviation: Vision Zero traffic safety, airport recovery, and major capital projects (Diridon/BART).
Strategic Support: Customer service reform, racial equity, employee retention, performance metrics, and cybersecurity.
5. Mayor and Council Discussion on Fiscal Year Priorities
Councilmembers shared input on priority areas for the upcoming fiscal year.
• Councilmember Davis emphasized early planning for 2026 mega-events (World Cup and Super Bowl), streamlining of permitting, and continued investments in parks and youth programs. • Councilmember Ortiz called for traffic safety in District 5, increased staffing of Police and Fire personnel, alternative response models like TRUST, youth homelessness support, and expanded park/trail access.
• Councilmember Batra stressed enforcing City laws (especially regarding homelessness), funding for school traffic safety and speed cameras, and comprehensive support for interim housing. • Councilmember Cohen emphasized the need to support the Council's four focus areas and the basic city services on which residents rely.
6. Next Steps and Closing
Mayor Mahan emphasized the importance of the discussion as the starting point for shaping the March Budget Message. The next steps in the budget process include refining fiscal strategies, incorporating Council priorities, and preparing for the March public hearing and budget r elease timeline.
PUBLIC COMMENT
Katherine Hedges, Jen Meyer, Deb St. Julian, Derek Sanderlin, Clarice Nguyen, and Kim offered public comment.
ADJOURNMENT
The Council of the City of San José adjourned at 8:17 p.m.
Minutes Recorded, Prepared and Respectfully Submitted by, Daniel Aguilar
Deputy City Clerk, City of San José
Approved at Council on:
# of Actions: 0
Attest By:
Toni J. Taber, MMC
City Clerk, City of San José
8/12/2025