Mayor Edwin M. Lee today introduced at the Board of Supervisors the City’s Ten-Year Capital Plan for Fiscal Year 2014-23 along with the Five-Year Financial Plan and the Five-Year Information & Communication Technology (ICT) Plan for Fiscal Year 2014-18.

“Whether we are investing in critical capital infrastructure, preparing for our long-term financial stability or planning for our innovation and technology needs, we must always consider how our City is growing and changing, so that we can best serve our residents,” said Mayor Lee . “With long term planning, we are better preparing ourselves to weather any economic impacts, maintain our fiscal stability, and create greater government efficiency. We can build and improve our City while creating jobs for our residents and supporting our continued economic recovery.”

The Ten-Year Capital Plan for FY 2014-23 recommends $25.1 billion in capital projects over the next ten years, including $4.7 billion for General Fund departments, $14.5 billion for enterprise departments, and $5.9 billion for external government agencies within the City and County of San Francisco. These proposed investments will safeguard and improve the City’s infrastructure, facilities, and parks, and will support roughly 223,000 local jobs over the next decade.

The City’s newest Capital Plan proposes a number of initiatives that have been key objectives since its inception in 2006, including fully funding the street repaving program at a Pavement Condition Index (PCI) of 70; funding facility renewals at levels that not only meet annual needs, but also reduce the backlog; relocating nearly all of the functions in the Hall of Justice to safer facilities; and continuing construction and planning on critical projects, including the Water System and Sewer System Improvement Programs, the new Acute Care San Francisco General Hospital, the War Memorial Veterans Building, Piers 27, 30-32, 70, Seawall Lot 337, the Central Subway, Transbay Terminal and Presidio Parkway (formerly Doyle Drive).

The Five-Year Financial Plan is required under Proposition A, a Charter amendment approved by voters in November 2009. The City Charter requires the plan to forecast expenditures and revenues during the five-year period, propose actions to balance revenues and expenditures during each year of the plan, and discuss strategic goals and corresponding resources for City departments. Over the life of the plan, revenues are projected to grow by $577.5 million or 13percent, at the same time, expenditures are expected to grow by $1,064.7 million or 25 percent resulting in a five year shortfall of $487.2 million.  The plan proposes a package of balanced solutions to address the gap including, capital and debt restructuring, managing wage and benefits costs, identifying additional revenues, adjusting baselines, limiting non-personnel inflation, and implementing ongoing department solutions.  In addition, the Plan identifies department specific issues including:

•Public Protection: The continued implementation of Public Safety Realignment; multi-year hiring plans to address retirements at the Police and Fire departments; and the continued planning and construction of large capital projects through the City’s General Obligation bond and General Fund debt programs, as well as the on-going costs associated with these large one-time investments.
•Public Works, Transportation & Commerce:  Planning and construction of large-scale development and capital projects; identifying funding sources to meet development needs; and finding a sustainable funding source for street repaving.
•Human Welfare & Neighborhood Development: Managing increasing demand for services through Aid programs; the need for reauthorization of voter-mandated set-asides for the San Francisco Unified School District and the Children’s Fund; and continuing to monitor and adapt to large fiscal and policy changes enacted at the state and federal levels.
•Community Health: Managing the implementation of the Affordable Care Act; controlling rising General Fund costs; and completing the SF General Hospital rebuild project in addition to planning for other capital projects proposed through the City’s General Obligation bond program.
•Culture & Recreation: Managing losses in revenue due to the expected departure of the San Francisco 49ers from Candlestick Park; and continuing to implement large scale capital projects, including: the Veterans Building Seismic Retrofit, the Recreation and Park Department General Obligation bond program, and the Branch Library Improvement Program.
•General Administration & Finance: Continuing to implement major housing initiatives through the City Administrator’s Office and the Mayor’s Office of Housing; major technology system replacements; and the implementation of the Business Tax reform passed in November 2012.

The Five-Year Information & Communication Technology (ICT) Plan for FY 2014-18 builds on the progress made in the first Plan and provides a framework for how the City can proactively plan for and invest in technology. The Plan identifies four strategic IT goals: making government more efficient and effective through technology, improving public access and transparency, strengthening security and disaster preparedness, and maintaining and supporting critical city IT infrastructure. The Plan identifies IT projects above and beyond available funding and recommends improved project planning which will allow COIT to prioritize and appropriately fund projects during the annual budget process.