tv Government Access Programming SFGTV June 6, 2018 8:00am-8:58am PDT
think we're in emergency circumstances now. so do you have a plan to incorporate these workers into our permanent workforce. >> yes. thank you. through the chair, we are not looking at any in-sourcing of the functions that we have outsourced. what we have been doing in recent years is working with the labor organizations that represent the workforces of these units and the contractors to provide -- to ensure that they're getting a prevailing wage and that it's an adequate wage, so we've worked particularly with the teamsters on evracts,ome of which they only recently organized and have gotten and supported through our budget good wages for those workers. i heard your concern about the growth of fte's in our budget, so we're also trying to kind of
manage for that. there's the direct service that we provide that is within and always has been within the core competency of the agency, that we do want to use permanent civil service employees for. there are these other elements that have always been contracts out that we propose to continue to do so. one of the biggestriver's of our cost that are rising faster than our revenues are our employee related particularly related to health and pension benefits. so we're trying to be responsible how we manage our resources,telie that theontrac that we do have provide a good, steady consistent jobs for the people who work them, whether there are employees or from a contractor. >> director reiskin, correct me if i am wrong, but you're not suggesting any new prop j contracts. these are the same ones that you had two years ago, four
years ago. this is not growing; this is just the status quo? >> that's correct. >> supervisor fewer: i think my question was whether or not we had a plan to incorporate some of these, for example. clear channel, could we be employing city employees under civilervice plan to do these jobs? many of these, after perusing the list, these are entry level jobs. also, when we talk about prevailing wage, that's one thing, but benefits, job security, those are the things that people need to be able to live here in san francisco. i have another overarching question. you don't have to answer it now, but i would love for you to consider a local hire policy for everyone in the mta and see if you can reach some attainable goals because i believe we should be hiring san franciscans first, so thank
you, mr. reiskin. i appreciate your response. >> supervisor cohen: supervisor sheehy? >> supervisor sheehy: again, on the crossing guards, are i know my district, i walked with a mother at school drop off at fair oaks and 24 who had fiven run over with her ear-old daughter. both of them had been hit by a car. so in that reality, this is just a small part of your budget. it's 2.2 million. we went and we opened sanchez school with mayor lee -- everett school on sanchez, everybody was out, watch for kids, and they were a crossing guard down, and i don't think they've ever been filled. i heard supervisor fewer say there were a number of schools in her district that don't have crossing guards.
i just -- i feel like -- it would be great to know that every school -- i guess what i'm looking for is a commitment that every school in the city that needs crossing guards will have crossing guards. i mean that's what i'm really looking for. and if you overbudget, and you don't need as many as you might need, but so many schools -- like, the schools that i -- i was -- over on 24th and fair oaks, they'd submitted an application a long time ago, and they just gave up, so we have a futility amongst a lot of schools knowing they won't get them. and it just it kind of -- it's alkbout safe routes to e to go school and teaching people how to ride a bike, and we spend all that money on that, but we don't provide the minimum basic service, which is crossing
guards. that that's just a plea,at'sust bias that i hope that the commit will be less position oriented and more capacity oriented and just a commitment that we will do whatever it takes. 'cause again, relative y budget is very small money. y noave people ggh.we killed, but they're getting run over. just 'cause we didn't kill them -- it's hard to talk to a five--o that have been hit by a car, and they're at the intersection. the first question you ask yourself, why isn't there crossing guards, so i hope, i hope, i hope. >> supervisor cohen: thank you, supervisor sheehy. i'm going to go to supervisor yee. >> supervisor yee: so i'm cring to join the chorus of g i'm going to echo supervisor fewer in regards to potential expansion of the hours to get
to 20. i think i'm having a hearing on thssuehat we're having in san francisco or are where most of the fatalities between collision of a car and a human being are seniors, and yet, we know that there are senior programs that operate in the morning or whatever, and there are -- the food pantries a ar crossing that are seniors.le ae i'm just wondering if we could be a little creative in seeing how we could work together to identify those in which one -- the crossing guards at the school to easily walk one to two blocks at these senior sites and help the seniors oss. >> supervisor cohen: thank
you, supervisor yee. director reiskin, i appreciate prestion,nd you heard from the colleagues about crossing guards. i particularly am interested builut our infrastructurend and maintaining the infrastructure that we have in ace. and my understanding is the fte's that you're proposing, is it 200 -- 2 -- is it 298 operators? >> director reiskin: there's 298 within the transit division. some of those are operators. there's probably more of them ervisor cohen: i'm under the impression you're doing this hiring to increase the efficiency of the service to ultimately all of san francisco. is that right? >> director reiskin: all of what we're investing in these transit is to provide services to either meet commitments that we either have collectively as a city made t buy more
vehicles and allow more development in san francisco as well as to anticipate the future development that is continually getting approved through the planning commission and board of supervisors, so i see this as we're fulfilling commitments that we've made over the years as we've authorized the purchase of buses and expansi o rail vehicles, all of which have been strongly and unanimously supported by the board of supervisors and the mayor, as well as the population increase of the city we're seeing, as you made reference to previously. but we can't accommodate that population increase with mor , so tnsit i real going to be the way that sustainably ble toove those people because we do insource our transit service, we deliver it with civil servants. that's why the increase in serviceman fests as an -- service manifests as an
increase in fte's. >> supervisor cohen: we're talking about an entity that has a $1.2 million operating budget. >> director reiskin: that is what's proposed. >>visocohen: how much were your projections for the current fiscal year? >> director reiskin: so for the current fiscal year is 1.18. >> supsor cohen: and what was the last fiscal year? >> director reiskin: last year, expenditures were up at 1.37. i believe there were a number of one-time expenses, including some relateso litigation and reled to litigation and carry forwards that made that number higher. but generally, the current fiscal year is what's trending at 1.18 and next year, 21, so a relatively modest increase. >> supervisor cohen: do
pat anymore litigation in the up coming fiscal year? >> director reiskin: e' anticipated that into the next fiscal year. >> supervisor cohen: and how much are you intending to carry forward? >> director reiskin: this year, we're at the end of the budget cycle, so whatever we have leftover at the end of this fiscalld fal over to our balance. we expect the end of this week to get new figures from the controller's office, we will be hnic jauflnd that is in phoill be funding the additional crossing guards that were proposed to my board after the approval of the budget. >> supervisor cohen: and how did our board receive the request from this body for crossing guards? were they surprised? were they supportive? >> director reiskin: they were supportive. >> supervisor cohen: okay. thank you, director. i appreciate your presentation.
supervisor stefani has bun final question. >> commissioner stefani: yes, i do want to echo the chorus on the crossing guard and ta what sce -- ud director reiskin: yes, thank you through the chair to supervisor stefani. with you look forward to the hearing that you and supervisor .fewer have called on this we've mad the capital investment and upgrade a lot of the systems within the garages. we're i think one-third of the gram of upgrading our garages. as you know we've had some very preliminary but encouraging n tms of what we're doing to add more cameras and lighting. 'vewelso addedcree sing and otr ways to l access as well as coordinating with the police department to
strategically deploy their resources to help with the garages. as you know in couple ces we've seen very substantial improvements such as the oing bockmanny ng on the piercee years. with regard to on muni, we have a work order with the police department through which we ocy sers dedth bo fro operating dollars and grant funds. to the extent they don't have or to the extent we've had extra grant money, we also use what we're calling our surge operation where we hire off duty police officers to come and work smaller shifts, and using that reso, we've ben able very strategic in working with the police department to he can inform --
focus them on the areas, the days the times, the locations where we see the most security challenges. we also have our fare inspectors. we have our muni transit assistance prm,o we have a number of dimensions of security on the muni service ble provide. that at lea terin of reported crime on i,mun so reported c has been going down on muni, but i do recognize t t perception of safety a security on muni still remains a concern, so we deparurtwn orithpoli staff to kind of cture the rider feedback in addition to try t most optimally deploy our resources. i will note -- and this may be true back to the questions that you had with the airport with regard to potential homeland security funding that federal funding support in these areas has been dwindling.
there's program within the department of homeland security lled t tran sis security anogram, the funds that we've been seeing in decreasing ous he yeao derak government will be a less reliablartner in this, soedook more to our operatinggetud o otherrant opportunitieso try to address security. but we are encouraged at least that the reported crime on muni has generally been dropping and be happy to go into much more detail on those questions at jue hearing. >> supervisor cohen: i want to talk about certainty and risk. senate bill -- in injure slide deck, you -- your slide deck, you acknowledge thatten al bill 1 is in jeopardy of being aledrepe and t's going to have a pretty significant impact. 27 million out of your operating t. if that's successful a the repeal happens, what does that mean for our transportation
system >> director reiskin: so we would to go through a budget rebalancing practices. i mentioned early- rebalancing practices. part of the way that we were able to accommodate the increase muni service that we were in this proposed budget was because of the new sb 1 million., thee27 so we will have to reevaluate should that measure make it to the ballot and be approved by the voters, we would have to c back, whether it be not implementing the full extent of those service cuts or looking at other areas of the budget to try to identify savings. i know we focused on a small area of the budget, but have more demands, whether it' in maintee or operations, whether it'sefreshing the paint on the street, let alone crossing guards and police services, than we have the resources to be able to supply,
so we try to weigh all the differentdry develop a balanced buet. that $27 million in addition to continuing strength of the general fund was a big part of whatllowed u tout forward our board topprove a pretty robust budget, particarly in terms of muni service. so muni service would be one of the areas that w would need to look at should we lose that anticipated 12 -- $27lion annually. >> supervisor cohen: you mentioned that costs are going up. can you identify where costs are going up? >> director reiskin: it's primarily pension and health benefit costs of employees which are rising faster than inflation, faster than our revenue growth. >> supervisor cohen: and the way wanagethat is maybe restricting the number of people that we hire? 's> director reiskin: so t part of the calculation. i think that was the spirit that was behind the mayor's budget instructions, because they were looking out, just as we were looking out seeing the
expenditures growing faster than the revenues,oth bor our budget and the general fund budget see a shortfall that we're going to need to address. >> supervisor cohen: do you sh ttfall? >> director reiskin: i don't , b tt i'd be happy to share it with you. our baseline shortfall for those two years but on the number of $29 million, so control fte growth is part of the strategy. on the other hand, the core service that we deliver, we deliver with public servants, and we don't intend to stray from that. so in order to meet those obligations, that's why we propose the employee growth that we do. >> supervisor cohen: i see. do you guys have a rainy day fund? >> director reiskin: we do. so our board set a policy of hog reserve an equivalent of 10% of our operating budget, so that would
create a reserve requirement of about $120 million -- $120 million. right now, the fund -- >> supervisor cohen: annually, or that's what you have intal? >> dector reiskin: so the requirement is at any given time have a funalance equivalent to at least 10% of the operating budget. something that we dipped into before i got into the agency but pretty significantly during the recession in order to prv or not to have to make service cuts to muni. we have since grown that back and we're now significantly above that rainy day fund requirement, and i have a chart that shows that. >> supervisor cohen: sfgovtv if you could show that. >> director reiskin: because the fund got built up so high, 20% of the operatingbuet, we did in the last two year budget as well as in this proposed budget proposed drawing down on that rverese putting it only to one-time uses, such as equipment purchases or other
capital improvements, but we are proposing some expenditure th that, but it would still, as apprd, aore the latest projections from the controller's office would leave us above that 10% reserve requirement, and this is what we would have to draw on should there be an economic downturn. >> supervisor cohen: all right. supervisor sheehy, did you have -- >> supervisor sheehy: just a quick question, and thank you, supervisor stefani for stimulating this. do police officers still -- is there still that requirement a part of their shift that they ri on a muni vehicle? >> director reiskin: i believe that's still probably in writing a policy of the police department. it would be a better question for the police department, whether it's still a policy and to what extent it's really still in effect and enforced. >> supervisor sheehy: for the
riders, it makes them feel safe for those blocks. i think that's something we could refer to the department. i remember you'd hop on a while, but i remember they had toof tthir thought it was a good policy. >> supervisor cohen: all right. thank you. seeing there's no further questions for you, thank you, and we'll see you next week. >> i guarantee you, there will easy. >> supervisor cohen: excellent. thank you for your patience. i really appreciate it. >> thank you. we are tiny compared to the giants that you have been hearing from. i want to thank you, chair cohen for this opportunity, and community members, i will very
quickly do three things. i will provide y with an overview of what we do, i will highlight our budget and i will highlight a couple priorities that will be coming up in the next budget cycle that we have been embarking on now. next slide. so just in large overview of what we ve thousands of residents and businesses ery year. we go door to door with recycling and composting so to make sure materials don't end up in landfills, we work with small businesses to reduce energy, we protect our public housing residents from exposure to toxic chemicals. we work with our fellow city agencies, with the board and with our business community as well as with our residents on around climate ge, and those ans been paying off. this is one of my favorite es. i know you have a lot o numbers before you, but the number i'd love to leave you with in my short time is the number 29.
29% reduction below 1990 levels in our greenhouse gas emissions. we've done that reduction while our population has increased by 20% and our gdp by 111%. there are very few cities around the world that can show a slide like this. clearly, there are large pacts on our city to have such large population growth and gdp growth of the one of the successes is the decoupling between the economic population and the greenhouse gas emissions. we do that in partnership with some of the entities you heard them today. it warmed my heart to hear them talk about their environmental goals. you'll hear more about that later today. our budget, as you said, chair cohen, we are not on the general fund. so when you look at our pie chart, it breaks down pretty dramatically. about half comes from what is the solid waste impound account. that is from the garbage rates.
we raise a full 22% or 23% either through grants and awards or through work orders from other city department showing our value every step of the way that we can. that 24% pie, the yellow, is the cigarette litter abatement money. that is simply a pass through. it comes to our department and then goesliorks d litter abatement and especially around the cigarettes. our -- the next slide is our budget at a glance. the main point to look here is the bottom line, and when you look at the bottom line, you'll see that our budget has mained very stable between last year and this year. ects changes in grants and grant cycles. because we are so heavily dependent on grants, it does impact our budget, and you see that here where we have some grants going offline, others that will be coming on. we have met the mayor's request
that make sure that we aorb any increases in internally. likewise, the next slide -- >> supervisor cohen: before you go to the next slide, i want to ask a question. i see1.1 $llion increase. you have a $22 million budget, and i think there's a 1.1 increase -- >> decrease. >> supervisor cohen: excuse me, decrease from between fiscal year 2017-18. you said that comes from grants? >> yes, and we are applying for more grants to try to soften that impact. that is a symptom of our department because we are so heavily grant funded. our next slide shows we have met the requirement of the mayor to keep our fte's constant, and you can see it's pretty much the same year to year. finally looking forward who's coming down the pike, as you may know we have already
started rolling out the biggest change to our program in the last 15 years. about 60% of the roll out, famientind sector. in the meantime, we have launched a very intensive multilingual outreach program to work with the residents and the small businesses to make sure people understand what they need to do. and finally, the ne large initiative for our departmen so very much not alone at earth day breakfast, the mayor announced a strategy and a goal to get to net zero carbon emissions. this is very bold. it keeps us in good company with 25 cities he world. it makes us compliant with pama c agreement and mayor has tasked the department of the environment with leading the way, developing a strategy,
and prioritizatio sche for meeting which we will be embarking on in the coming year. insoclosing, as you can ,see we have about a $22 million budget. we have no additional fte's, we do not have impound money, and we are very proud of last year.maged to in the so thank you. >> supervisor cohen: gr. my comiments to you your entire staff, and congratulations. tenatminutes. od job for you. definitely getting a gold star. i don't have any questions for the proposedbudg. i want going to ask if there was any cost savings, but i don't think you have any or any salary savings or anything like at>> there's -- no, we're very flat on the salaries. >> supervisor cohen: okay. great. ank you. rv >> supervisor fewer: yes. thank you for your presentation han tyou for all the work you do to pick up the cigarette butts in my neighborhood. i jus w, do you
have anyvaie >> we have three vacancies, and they are he aall in the process of recruitment, so we' looking for good candidates. >> supervisor fewer: thank you very much. >> supervisor cohen: cone all gright. hings moving,e'r w t services next.rom childsupp child support services is headed by miss karen roy. their total budget is $13.5 million. apparently they tell us there's no change from last year. it's mostly comprised of federal dollars and state dollars. >> that's right. >> supervisor cohen: all right.et's abouthild support services. >> okay >> supervisor cohen: next, we mwi francco
oyeepl retirement system. >> thank you so much f inviting the department to present before you today. chair cohen, thank you so much. members of the committee, i am excid to present our budget to you. joining me is our deputy director, carol bennett. >> supervisor cohen: hi, carol. >> next slide. thank you. it is our mission to empower parents to meet the needs of their children. while our services remain significant, how we deliver pace with families today. the child support program understands that sometimes parents need help in meeting their obligations to provide economic support for their children. many parents responsible to pay child support are themselves
struggling with poverty or just as involved and face significant barriers to gameful employment. the hea winds some parents face in accomplishing their goals requires a concerted effort and child support must be part of that effort. with a innovative spirit, the department hasucture its delivery service to one that is family centered,pingel parents meet their economic commitments to their children, strengtheni strengthening ties. we recognize that custodial parents who suffered domestic violence should be able to pursue child support safely, that realistic orders that are in line with parent earnings are reliable orders that children can count on. that incarcerated parents are parents first, and their anildren are waiting for them that coparenting provide fathers the opportunity to
engage and care for their children, creating long-term benefits for the whole family. the department manages both with conviction and optimism. we continue to build a stronger and more valuable program for all san francisco families by leveraging our partnerships with relevant city agencies and community-based organizations, strengthening outreach to build deep client connections and reaching into our program to ensure parent equity and treatment. low-income families who have timed ubc assistance rely heavily on child support as a safety net for deeply impacted mothers who receive it, child support is 63% of the family's annual in. our clients are predominantly african american and latino, with the number of asian american families increasing.
98% of families paying child support in san francisco are fathers, and 97% of children on our caseload have paternity established, helping to build stronger familial relationships. in my experience, we have made meaningful progress for federal fiscal year 2017, the department collected approximately $26 million. 95% of every dollar collected went directly to families, and of the 58 california counties, san francisco is ranked fourth in collections for children. the department receives no county funding, no county general funding and is 100% supported through federal and state funding as was mentioned by chair cohen.
the department anticipates federal funding and has aligned its budgets to maximize budget streams, mineful to live within our means. this budget prepares for future increases in the cost of doing busies wit three primary adjustments to proposed spending. first, the recalibration of county costs related to health and retirement benefits were actualized for this budget at a lower cost to the department adding to atrition sgs second rk second, funding in the department's telephony and i.t. systems has been funded by the state for the current year, and finally, current county recovery from oth departments are considered ongoing and primarily supports colocation costs. key to delivering on the promise of enhanced case
management services that address the needs of trauma-impacted and fragile families are direct service providers. and at this time i want to take a minute to thank the men and women of the chil support program. i believe public service is a calling and not just a job. investg in the people that deliver our services is critical. the department has a workforce that is culturally competent and reflects the dersity of the people we serve. case workers appreciate and respect cultural differences and take them into consideration providing excellent customer service to parents. the department also prioritizes language access, understanding that absent effective communication, a culture of inequity in service delivery is very possible. we regularly analyze and
criticize our internal systems in relation to clients' feed pack to ensure systemic barriers to access do not occur. i also want to take an opportunity to thank the mayor's office and the controller's office for their assistance with this budget. i'm happy to answer any questions you may have. >> supervisor cohen: thank you. owledge that the child orttac ervices wil havt a budget legislative analyst report next week. i would like to propose that there's no need for them to come back and present to us again, so we will just hear this, and then, we will dismiss you for the -- for the duration of the process. i don't know if there's any questions. su question.: just one i noticed in your report you said that the caseload is down. >> yes. >> supervisor fewer: and why do you t that is? oad -- has gone down substantially. i believe it's the families that are leaving san francisco.
they simply can't afford to stay in our city. we, at one time, had over 27,000 cases, families that were receiving support through our program, primarily middle-income families. we have seen a drastic drop in that number. i also want to say that this program is free to all families, with $25 annually, any family member can come in eand ask for servs,nd will support you, and we will provide you with legal support. we know that it roughly costs around 12 to $25,000 fo diatmeon serces, legal services, etcetera. for $25, we're here for you. >> supervisor fewer: thank you very m
>> you're well cocome, through chair. >> supervisor cohen: i don't y ot r questions. thank you for your service. >> thank you. >> supervisor cohen: all right. next, i'd like to call up the san francisco retirement system. they have a budget of -- [inaudible] >> supervisor cohen: years of service. >> yes, i've been watching the committee, and i wanted to acknowledge norm. he's worked two tenures with the retirement system. i'm very grateful that he decided to come back. he's worked in various departments, well known and really appreciate the work that congratulate him on his retirement. >> svisor hen: yes, congratulations.
>> he's learned the subject matter too well when you work for retirement. >> supervisor cohen: all right, mr. ish are you st ted? >> right. pleased to be here, supervisors. with the retirement systeur mission is to invest the pension trust prudently, to administer thedait programs, and most importantly, to the folks who have earned pensions, we pay the promised benefits every month. the second slide that i have here, just as a reminder, that inanas established originally . currently, we're administering 14 separate retirement benefit programs for the employees and retirees of the city and county of san francisco. i h just sort of for tracking purposes our three-year membership growth.
you can see that we have nonretired members have grown from last year, a 4.8% increase, retired members at 3%, and overall total growth from last year is 3.9%. we've crossed over the 70,000 active and retired member number for the first time. the next slide basically shows the fundedness and the health of the retirement system, and i'm very proud of this slide. i think you will often hear m say, and other people will say that we're among the very best funded pension plans in the united states. we'd love to be 100% funded, but ceaiy,e're working towards getting 100% funded. i have a very hard working board, pioneering board, and we're doing our best. you can see t the market value of assets in 2017 -- we take a snapshot every year, july 1, 2017 was $22.4 billion,
which meant we're funded at 87.2% ratio. just to deliver you the most up to date news, as of the end of first quarter 2018, the trust is over $24 billion, and we're set to have a return of around 10% on the plan, which hopefully on the mayor's budget side will be a surprise that we've done better than expected. we always try and , so good news so far. but as most of you know, the financial markets, especially in 2018, have been pretty shaky. we a 10% correction, which we believe was long overdue. we recovered from that correction. we're positioning our assets in over time to make sure that we aren't severely impacted by those types of downturns.
the retirement board acquires the deferred comp program. we're pleased with the participation we have in the program. we currently have over 19,000 employees that are voluntarily contributing to deferring kp compensation to this plan. we have just under 30,000 folks that have accounts with the deferred comp program, and the assets that the employees have contributed and the investment earnings they have now top $3.4 billion. so this is a significant program, an important tool, sort of the third leg of the stool for folks who are looking inforlook to retire. we're very pleased with the participation in the deferred comp program. we opened up a loan p in
august of 2016. this was at the request of the city, and the employees, and we have had over 2400 folks who have taken out loans against their own account. you take the money out, you pay yourself back the interest, and so even though we've not wy publicized this, it's certainly on theite. it's aprram, you can use it for a down payment on the house, or you can use it to pay college tuition. >> supervisor cohen: what's the maximum amount of money that you can borrow. >> theigher of $50,000 or half of your account balance. so if you don't have $100,000 inour account, you can borrow up to half of what yccount t the max is 50. you can have multiple loans.
>> supervisor cohen: once the account balance is paid. >> no, you can have multiple loans at the same time, so it's a very important program for folks. alectiffe july of 2017, the administration and investment of the retiree health care trust was transferred from the office of the controller to fers, but i'm -- i won't he tell you what the funded percentage is, but i'm happy to report that has grown to over $250 million, so we continue to invest that money. that is the money that was required at a 2% rate for new employees and now is being phased in for all current employees at quarter percent rates. the city also has a contribution that goes into this pool, so we're excited about trying to prudently invest these funds, also.
our budget highlights are -- i will respectfully correct the chair, madam chair, that even though it looks like there are general fund dollars supporting the retirement system's budget, there are no general fund moneys. i think it's setup in a general fund account skbrujust so it c handled differently. >> supervisor cohen: that's correct. >> but all of the funds for the sfers are paid by the trust through the deferred comp program. they're reimbursed to us by the third party administrator and for the retiree health care trust fund, all of the expenses for administering the program are taken from the earnings of the ree heah care trust fund. we have three strategic initiatives that i wanted to point out to the committee. in our budget, we've proposed a very minor organ ofi
ou member services area, because we want to start focusing on a retirement readiness campaign, not just talking to people about their pension, but also talking to them about the opportunity to defer theioney through the city's deferred comp program as well as get information out to them related to their social ritcu benefits, and so we're going to start, and this budget reflects just a change -- it was a subion oa position so that we could have leadership for this new campaign. we also have an enhanced member experience strategic initiat e w currently ae on our website, members have 24-7 access through a secure member portal to all of their retirement information. they can model benefits, see what their pension would look like if they decided to retire in october of 2019. we think that we know from the number of visitors that we receive through this that it's been well received.
we want to continue to roll out additional svices. ervice modl we have still probably over 90% of all transactions are conducted face-to-face. we're not sure whether it's they just loveo co see us, but we really want to off load and educate folks that they can save themselves a trip to our office by going on-line and conducting transactions that way. and the third initiative is the ing initiative. his budget, we did not keep in line with mayor lee's budget instructions. however, the mayor's office did approve that we would be able to acquire resources to fully implement our esg, and the we're hoping that the committee
and the board would be permanent resources as a signal that we're not just focused on foss fuel, we're also focused on executive pay, diversity on boards, a long listsoci, nmen nd governance issues, so w thae're hopin you'd be supportive of that. as requested we've shown the fte growth relatively flat over the last few years, including the last two years and future budget. and this is how we spend our budget. and you can see that two thirds of all of our expenses are paid towards investment. that is not staff salaries, those are hiring managers, they're travel, they're research, and so the last majority of our budget is spent on investment. we have roughly 23% of our budget is spent on personnel. and then, we have work orders
for administration and retirement is the next piece. so i'd be happy at this time to answer any questions that any of the committee members might have. >> supervisor cohen: thank you very much for that presentation. supervisor stefani? >> commissioner stefani: thank you. i know you mentioned the divested from fossil fuel holdings, and i'm wondering if we divested from ammunition and gun stocks? >> yes. we went further than anyone did after sandy hook. we not only from the manufacturers, but we divested our holdings in the major retailers that were making those available to the public. so i'm proud of the board by going further than the step -- than i think a calot of calls e
being made fornow. >> commissioner stefani: thank you. >> supervisor cohen: yes. supervisor yee? >> supervisor yee: you mentioned theireeet h f td has grown to about 250 million. is there a particular goal that we're trying to reach in terms of the amount? and then, also, i was just wondering what the source of the growth is from? >> i hesitated to say the fundedness because we were one of the first. the city and county of san francisco is one of the very first cities to decide to start funding this type of obligation. i believe -- i don't have the numbers in front of me, but certainly, the retiree health care obligation -- the liability is over $4 billion, the last number i saw, so what the city took, the last cha proposal is to start collecting money from active employees that is in a trust that only under very emergency types of circumstances could the city start having and building up
towards a $4 billion. so it's not a significant funded level, but certainly, it represents, i believe, the fore oughtf this city to go forward and at least t ary resolve the issue. eventually, everyone will be 2% -- all active employees will be paying 2% of their pay into this trust, and the city will be paying 1% of that pay. so it's going to take a while, but certainly, it reflects an effort. it used to be managed at the treasurer. in a couple of years they approached the retirement system to see if they could piggyback off of some of our investment opportunities and we're able to provide them access to some index funds so that they're able to rather than more than just sort of a treasury rate. i don't have the numbers in front of me but certainly it's earning in the realm of 7 to 8%. and now that we have taken over the management of it, we're
actually introducing to the board the opportunities to make direct investments rather than just passive investments, so we're building it out similar to, you know, the way we manage the retirement system. they are now at a size that they're ifican they make a $10 million investment and not really, you know, have it an overpowering impact in the portfolio. so i -- you know, claire murphy, my predecessor, told them, don't come and talk to us il you got to the right size. they got to the right size, and they came and talked to us, and we're more than happy to invest this for them. for being a passive portfolio up until now, it's been getting very respectable returns. >> supervisor yee: thank you. >> supervisor cohen: thank you. i have a question on the final page with the pie chart of your on, you've got investment expenses at $61 million.
i'd like you to talk to us about those expenses. at kind of expenses are there? >> yes, the majority of these are for consultants and for managers. actually, the majority of them are for managers. we engage 80 -- invest -- over 80 investment pay them fees associated with those sections of the portfolio. also, the board has an investment consultant, and then we have a private market consultant and a public market consultant, so a lot of those are for consultants. the other consultant that the board has is the actuarial consulting services, which is an outside actuarial firm that oversees and conducts all of our reporting, all of our recommendations for the board on contribution rates every year, and so that's the nature of the vast majority of that cost. i think it's -- in the
investment, it's all managers and all consultants. >> supervisor cohen: oka so there were -- earlier in the committee hearing, there was a long conversation about increasing sfpd. the mayor has put a proposal forward -- a budget proposal hire something like 160 o employees -- new sfpd officers. and quite frankly, this body is -- not just this committee, but the entire board of supervisors have identified public safety as one of their top concerns. and in that -- i that area of public safety, it's a desire to see more beat cops, more foot patrol cops. so there's a proposal that's be cur-ntly bg floated that would ultimately have 250 employee -- new officers in four years.
so that's, what, fiscal year 2022? i'm wondering -- and if you don't have the numbers, you can certainly bring it back to us, but what are the exponential costs associated to the retirement fund? one thing we heard about mta, when you bring on fte's, fthere's more tha t salary. there' the benefits, and then you're paying out throughout their entire career. and then, when they retire, yes they've paid into a pension system, but they're also drawing down on our health care system with very expensive health care costs that are growing exponentially, meaning the cost that we're paying when they get in is not the same cost that we're going to be paying for them when they retire. and i don't want to exclude myself. this includes mylf. >> all of us, actually. >> supervisor cohenye i want to know if you can
indicate the cost of hiring 250 additional police officers. the reason i'mgetinghis, they are very highly paid and a very skilled classification of city employees. and if you don't have it, i'd just love for you to get it back to me because i'm interested in mowing what the plult meyer effect is on their multiplier effect is on their salary. correct me if i am wrong, but i think the vesting -- the number of years that you have to complete your service irde to vest its 13 years? >> for the retirement, it's five years. >> supervisor cohen: five years. >> for the health services, i think total vesting is at 20, and so i think you get access to medical -- >> supervisor cohen: after 20 ars of service. >> after te i don't have the chart, but i think it graduates up. and by -- you have to have a full 20 years to get the full subsidy of retiree health because previous people -- i'll remind you, all of the new po aome into a benefit plan that has lower benefits than the folks prior
to 2010. but it'll still be costing -- we have- as you know, we hav an internal actu will have herateimhenumbers, assuming they'll all come in at entry level or -- and it'll be 250 over a four-year period. >> supervisor cohen: that's right. i just want to pivot to the mayor's staff. i don't know if you have any preliminary numbers about what that's going to cost 'cause -- so what mayor farrell actually proposed has, i think -- if i'm not mistaken, a $34 million cost for new officers, but we didn't really discuss what year three, year four, what those costs will look like. if you could share a little insight on that right now? you have to turn the mic on. thank you. >> this is a really excellent question, thank you.
the cost that mentioned to include the salary and benefit woulludenche employee , so t contribution rates for the retirement fund. i don't have the number off of top of my head of the projected costs and out years of how much that will go up by, but certainly, we take those costs into account when we do our long-term deficit planning, so we could estimate that for you. >> supervisor cohen: okay. great. i just wanted to get it on the record and ask the question. we can get it out especially when the police department comes to talk about their budget at a later date. in the meantime, love to hear what janet brazelton has to say, our internal actuarial on numbs. >> yeah, she can do a pretty good ballpark, but we will refer it also to the actual outside actuary. >> supervisor cohen: you don't have to refer it out. just keep it kind of internal. let's see what she's talking, i
will compare it against the bla, and the mayor ka's office and w can figure out what rvisse costs are goino be few, did have -- no? okay. i don't think we have any other questions for you. is there any other information that you want to present? no? >> no. >> supervisor cohen: oh, i'm sorry, i didn't mean to swer for you. >> i'll take your lead. no. heopportunity, andll you ne week. >> supervisor cohen: all right. thank you. good to see you all. thank you. all right. next, we're going to hear from the la library.
>> if you turn to the second slide, the highlights of some of our services include attorney reference librarians assistance. four people, whether they're lay people or attor. they have some portions of our collections that aren't found elsewhere. one of them, it has to do with the complete history of the