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City audit faults Fire-Rescue overtime forecasting after $71.6 million multiyear overage; department projects midyear shortfall
Summary
A city performance audit found the Fire-Rescue department exceeded overtime budgets by $71.6 million from FY2019–FY2024, with $31.8 million hitting the general fund. Auditors recommended formalized budgeting methods, improved staffing projections and an updated relief-pool calculation; Fire Rescue and Finance agreed to implement the recommendations.
Auditors presented a scathing review of San Diego Fire-Rescue’s overtime budgeting and staffing projections on Feb. 2, finding persistent multiyear overspending that has strained the city’s general fund.
"Fire Rescue spent about $54 million on overtime in fiscal year 2024—about 15% of its total annual budget—and the audit identified $71.6 million in overtime overages from FY2019 through FY2024," said Principal Performance Auditor Megan Jaffrey during the council presentation. The auditors told council members $31.8 million of those overages affected the general fund.
The audit team identified three primary issues: an overtime budgeting methodology that has not been zero-based since FY2019; staffing projections that excluded many sworn positions filled through the fire academy; and an outdated relief-pool calculation that understates leave-related backfill needs. "We found the department consistently underestimated vacancies and leave, which accounted for roughly 83% of overtime budget overages on average," Performance Auditor Stephanie Potts told the council.
Auditors walked council members through modeling that used five-year averages for academy graduates and attrition, showing that if the city continued running two academies per year it could take about seven years to reach full staffing under conservative assumptions. Fire Rescue disputed that specific timeline but agreed with the need to revise methodology. "We disagree with the seven‑year estimate, but we agree to implement the recommendations," Michelle Yamamoto, deputy director in Fire Rescue, said, adding that Fire Rescue graduated an unexpectedly large academy class in December and has promoted engineers and captains to reduce higher‑rank overtime.
The audit’s remedies include requiring Fire Rescue to formalize and document its overtime-budget methodology with the Department of Finance, adopt a zero‑based budgeting approach at least every five years, include all sworn positions in staffing projections, and update the relief‑pool and relief‑factor calculations using historical leave data. The Department of Finance told council staff it received the draft policy and will meet with Fire Rescue to refine the methodology for possible incorporation into the FY27 budget.
Council members pressed staff on whether the department expects to stay within the FY26 overtime allocation. The independent budget analyst confirmed a midyear projection that Fire Rescue will exceed the overtime budget by $6.8 million, with an estimated $5.3 million net impact to the general fund after reimbursements.
Public commenters raised related concerns about other pay categories, the effect of deferred maintenance and facility updates on staffing, and the value of women’s recruitment efforts that had been curtailed. Council members voiced particular interest in restoring targeted training programs they said helped recruit women into firefighting roles.
The auditors reported that Fire Rescue and the Department of Finance agreed to implement the audit’s six recommendations; one recommendation appears implemented so far and five remain in progress. The item was presented as informational; no council action was required. The city auditor said follow‑up will review implementation of the recommendations.
