City Ends Fiscal Year With Surplus, But Future Uncertainties Remain
The city of San Diego ended the most recent fiscal year with a $43.6 million surplus, following years of battling deficits, but future budgets are clouded by uncertainties, city financial staff reported today.
The city brought in $111 million more revenue in the fiscal year that ended June 30 than the previous year, according to a presentation to the City Council's Budget Committee on as-yet unaudited results.
The total included a $27 million settlement with San Diego Gas & Electric involving the 2007 wildfires and $24.7 million in additional property tax revenue that resulted from the dissolving of redevelopment agencies.
A comprehensive roundup of audited figures should be delivered to the council in a timely manner unlike past fiscal years, in which final numbers were sometimes delayed for years, Comptroller Ken Whitfield said.
"It's good news in general,'' committee Chairman Todd Gloria said.
Jay Goldstone, the city's chief operating officer, added several cautionary notes about the future.
He said the annual contribution to the San Diego City Employees Retirement System could jump between $5 million and $25 million next year because the agency experienced low investment returns.
Also, the full impact of implementing the voter-passed pension reform initiative is unknown, property values remain flat and the recovery of the economy as a whole remains "soft,'' he said.
The mayor's office is set to bring a $25 million bond proposal to the City Council on Oct. 10 that would help fund major capital projects at libraries in Mission Hills, San Ysidro and the Skyline area, construction of a fire station in Mission Valley, repair of the seawall at Mission Beach and road improvements, Goldstone said.