City's Infrastructure and Neighborhood Investments Projected to Double Over Next Five Years
New Financial Outlook Forecasts Modestly Improving Revenue that Mayor Plans to Use for Streets, Parks, Libraries and Neighborhood Upgrades
Wednesday, Nov. 18, 2015 - NEWS RELEASE
San Diego, CA - The City of San Diego has released its annual Five-Year Financial Outlook, which forecasts revenues to modestly improve over the next five years. Mayor Kevin L. Faulconer plans to use these funds to double the City's investment in infrastructure and neighborhood services, such as street repair, over the same period.
Mayor Faulconer welcomed the Financial Outlook but emphasized the need for continued fiscal responsibility.
"We all know the economy follows a boom and bust cycle, so I believe good periods like this are the right time to plan ahead, save for a rainy day and invest in the future," said Mayor Faulconer. "I plan to continue to put even more of our tax dollars to work fixing streets and neighborhoods, and a growing economy is key to these efforts. But we must continue to live within our means and practice financial restraint."
The projection shows a modest $200,000 revenue surplus for the City's General Fund in Fiscal Year 2017 when increased investments in infrastructure, neighborhoods, public safety and other priority areas are taken into account. Steady growth through Fiscal Year 2021 is forecasted after that.
The Financial Outlook didn't factor in recent changes by the independent pension board that will increase the City's annual pension payment. On Friday, the same day the Financial Outlook was released, the board of the San Diego City Employees' Retirement System voted to change financial assumptions, which will likely lead to an increase of millions of dollars to the next year's pension payment. Mayor Faulconer has called on the City Council to approve a pension stabilization reserve to help absorb these increased costs and reduce impacts to neighborhood services.
The Financial Outlook projects the extra dollars available for infrastructure and neighborhood investments on top of what is currently budgeted will more than double - from $41.6 million in Fiscal Year 2017 to $94 million in Fiscal Year 2021. That projection is driven by Mayor Faulconer's pledge to spend at least 50 percent of new major revenue growth on infrastructure and neighborhood improvements.
The Financial Outlook is not a budget document, but rather a projection of future revenue and expenses that City leaders can use to plan for the future. It provides the City Council and the public information to facilitate an informed discussion during development of the Fiscal Year 2017 budget regarding the allocation of limited resources to meet the service needs of San Diego residents.
Mayor Faulconer will present his proposed Fiscal Year 2017 budget for the City Council's consideration in April 2016.
CONTACT: Matt Awbrey at (619) 453-9913 or firstname.lastname@example.org