![]() The Adopted Budget recommends fully funding City reserves to policy target levels, which include additional contributions to the General Fund Reserve and Public Liability Reserve. The City continues to live within its means. This was made possible by utilizing the City’s newly created pension reserve fund and excess risk management reserve balances, budget reduction proposals from all operating departments, and budgeting in Fiscal Year 2018 a projected General Fund balance from the Fiscal Year 2017 budget. These changes include projected longer lifespans for retired employees and lower-than-expected investment returns in the past fiscal year.ĭespite these rising costs, the Adopted Budget fully funds this higher pension payment without reducing core service levels restored in recent years or investments in infrastructure. ![]() The increase principally stems from changes in actuarial assumptions calculated by the San Diego City Employees’ Retirement System’s independent pension board. The City’s primary operating budget, or General Fund’s share of the pension payment is $236.4 million, increasing $45 million, which exceeds the projected growth in major General Fund revenues for Fiscal Year 2018. The City of San Diego’s pension payment has increased to $324.5 million, more than $63 million from Fiscal Year 2017 to Fiscal Year 2018. Fiscal Year 2018 is going to be a lean budget year as San Diego, like many other cities across California, grapples with growing pension costs. This includes road repairs parks and critical infrastructure increased police officer retention and recruitment funding environmental sustainability through the implementation of the Climate Action Plan increased staffing for new recreation facilities and operational support for additional open space acreage protecting library and recreation center hours restored in recent years homeless services and housing affordability initiatives and the Pure Water program that will create additional local water supply.Įven though the City is projecting modestly improving revenue in Fiscal Year 2018 to help fund these priorities, that growth has been outpaced by a significant increase in the City’s annual pension payment. The Adopted Budget includes funding for programs and projects that make a difference in the lives of San Diegans. Although many of the local economic indicators were strong, uncertainty exists in major sales tax generating categories such as oil and gas prices and general consumer goods. While the Adopted Budget projects moderate increases in revenues, growth has slightly declined compared to recent fiscal years. San Diego’s economy remains strong and the Adopted Budget projects moderate growth in the City’s three largest General Fund revenue categories – Property Tax, Sales Tax, and Transient Occupancy Tax (TOT). In fact, San Diego earned a credit upgrade on Februfrom Fitch Ratings Agency for its “conservative financial management policies, and strong financial planning and disclosure practices”, “strong general fund revenue performance”, and a “healthy economy”. The Adopted Budget preserves neighborhood services added over the last three budget years and continues to prioritize investments in streets and infrastructure while maintaining responsible financial management. ![]() This is a balanced plan that keeps the focus on core community services San Diegans value such as road repair, parks, libraries, and public safety. I am pleased to present a balanced Fiscal Year 2018 Adopted Budget that protects and furthers the progress the City of San Diego has made to put neighborhoods first, create a better quality of life for all communities, and restore services throughout the city.
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