The Department of Finance (DOF) told the City Council Finance Committee that the $25 million ECB (Environmental Control Board) amnesty number appears in the adopted FY2027 budget, but officials did not provide the department’s calculation or the participation rate underlying that projection during the Aug. 12, 2026 hearing. (Source: https://youtu.be/uWFEY2LKkAI&t=421; https://youtu.be/uWFEY2LKkAI&t=2113)
# What’s happening
– DOF included $25 million from an ECB amnesty in the adopted FY2027 budget.
– DOF did not provide the calculation or participation-rate assumption at the hearing.
– DOF said it will follow up with the Council with those figures.
Source: https://youtu.be/uWFEY2LKkAI&t=421; https://youtu.be/uWFEY2LKkAI&t=2113
# Why it matters
– Property owners and businesses with ECB judgments could be eligible for reduced payments.
– The city’s FY2027 ECB collection target depends on this projected amnesty revenue.
Source: https://youtu.be/uWFEY2LKkAI&t=254; https://youtu.be/uWFEY2LKkAI&t=421
# Key details
– The adopted budget lists an ECB collection target of $100.76 million, inclusive of $25 million from amnesty.
– DOF declined to state the participation rate that produces the $25 million projection.
– DOF said it collected $88 million in ECB debt in fiscal year 2026.
– DOF estimates $573 million in ECB judgment debt is potentially collectible and $744 million uncollectible.
– Prior DOF amnesty (2021) had about 33,000 respondents and raised $47 million over six months.
– The proposed amnesty would run 90 days with an option to extend to 180 days and generally reduce penalties by 25%.
Source: https://youtu.be/uWFEY2LKkAI&t=421; https://youtu.be/uWFEY2LKkAI&t=2113; https://youtu.be/uWFEY2LKkAI&t=2764; https://youtu.be/uWFEY2LKkAI&t=1566; https://youtu.be/uWFEY2LKkAI&t=96
Department of Finance (DOF)
– Role: City agency that collects outstanding ECB judgments.
– Action: Presented FY2027 collection targets and testified about a proposed ECB amnesty.
– Numbers: Adopted ECB collection target $100.76 million (includes $25 million amnesty); FY2026 collections $88 million; $573M potentially collectible judgments.
Source: https://youtu.be/uWFEY2LKkAI&t=421; https://youtu.be/uWFEY2LKkAI&t=2764
Commissioner Richard Lee
– Role: Commissioner, Department of Finance.
– Action: Testified at the Finance Committee hearing about the amnesty program and DOF collection efforts.
– Date: Testimony given at the Aug. 12, 2026 Finance Committee hearing.
Source: https://youtu.be/uWFEY2LKkAI&t=254
At the Finance Committee hearing on Aug. 12, 2026, Council members asked DOF how it arrived at the $25 million amnesty estimate and what participation rate that number assumes. DOF witnesses said the $25 million is included in the adopted FY2027 budget but did not provide the department’s internal calculation or the participation-rate assumption during the hearing. (Source: https://youtu.be/uWFEY2LKkAI&t=421; https://youtu.be/uWFEY2LKkAI&t=2113)
DOF told the committee the city’s ECB collection target for FY2027 is $100.76 million, and that figure is inclusive of the $25 million from the proposed amnesty program. The department said it would follow up with the Council on the participation rate and other supporting figures. (Source: https://youtu.be/uWFEY2LKkAI&t=421; https://youtu.be/uWFEY2LKkAI&t=2113)
Committee members pressed DOF on how much of the $25 million would be incremental revenue versus money the city would have collected without amnesty. DOF did not provide that breakdown at the hearing and again said it would supply the figures after the session. (Source: https://youtu.be/uWFEY2LKkAI&t=2113)
DOF placed the $25 million amnesty projection in the context of broader ECB collections. The department said it traditionally collects roughly $75–$80 million per year from ECB judgments and that it collected $88 million in fiscal year 2026. DOF also reported it identifies about $573 million in potentially collectible ECB judgment debt and about $744 million deemed uncollectible. (Source: https://youtu.be/uWFEY2LKkAI&t=2113; https://youtu.be/uWFEY2LKkAI&t=2764)
DOF described the proposed amnesty program’s basic mechanics at the hearing: it would run for 90 days in FY2027 with an option to extend to 180 days, waive accrued interest, and generally offer a 25 percent reduction in penalties for participants. DOF said the program is modeled on past amnesty efforts. (Source: https://youtu.be/uWFEY2LKkAI&t=96; https://youtu.be/uWFEY2LKkAI&t=254)
To provide context on past outcomes, DOF said the 2021 amnesty attracted about 33,000 respondents and raised roughly $47 million over a six-month period — about $33 million in the initial three months and $14 million during the extension. DOF also said roughly one-third of ECB collections come from the department’s judgment settlement program. (Source: https://youtu.be/uWFEY2LKkAI&t=1566; https://youtu.be/uWFEY2LKkAI&t=2764)
DOF outlined other collection strategies it is pursuing alongside the amnesty: partnering with permitting agencies to require correction of violations before issuing permits, converting certain Department of Buildings judgments to property liens, and targeted outreach. DOF gave preliminary estimates of about $10 million from permitting-related actions and $1.5 million from increased outreach, but did not tie those figures to the $25 million amnesty projection. (Source: https://youtu.be/uWFEY2LKkAI&t=2918; https://youtu.be/uWFEY2LKkAI&t=2842)
Council members asked specific operational questions about verification of required corrections for compliance-based violations. DOF said it will rely on the issuing agency to certify that corrective work is complete before granting amnesty benefits. (Source: https://youtu.be/uWFEY2LKkAI&t=1407; https://youtu.be/uWFEY2LKkAI&t=2113)
What the Council can expect next: DOF repeatedly told members it will provide follow-up data, including the participation-rate assumption and the calculation backing the $25 million estimate. The department did not supply those documents at the Aug. 12 hearing. (Source: https://youtu.be/uWFEY2LKkAI&t=2113)
If you want the exact moments in the hearing where these points were discussed, see the Department of Finance testimony at the Aug. 12, 2026 Finance Committee hearing. (Source: https://youtu.be/uWFEY2LKkAI&t=254)
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