Friday, November 15, 2013
San Diego is on pace to take in $18 million more than it spends this fiscal year, based on city financial activity in the first quarter, according to a report released Friday.
Variances between actual revenue and spending, compared to what was budgeted for the city, are less than 5 percent in a $1.2 billion general fund, according to the report.
If the projections hold through the fiscal year, the city would make $57.4 million more in revenue than expected. Of that total, $36.3 million extra would come from the Redevelopment Property Tax Trust Fund plus $8 million from disposing assets of the old San Diego Data Processing Corp., Interim Mayor Todd Gloria said.
Costs are on track to be $16.9 million higher than expected, mainly because of employee overtime, the mayoral special election and the relocation of some city offices, according to the report, which recommends against service enhancements because unforeseen events could change expense and revenue projections as the fiscal year progresses.
"Projections for a year-end surplus are based on three months of activity," Gloria said. "While I hope the positive trends continue, it would be irresponsible for the city to spend money we don't yet have."
The release of the report, which is scheduled to be presented to the City Council's Budget Committee next week, comes one day after Gloria unveiled the city's five-year financial outlook, which includes a $19.1 million shortfall for basic services for the next fiscal year.