Revenues coming into the city of San Diego are running above projections through the first six months of the fiscal year, and that should result in officials having an extra $3.6 million to spend, according to a report presented to a City Council committee Wednesday.
The "Fiscal Year 2013 Mid-Year Budget Monitoring Report," given to the City Council's Budget Committee, found that San Diego is on pace to spend $7.7 million more than expected through June 30 but will earn $13.2 million more than had been anticipated.
The major contributors of the extra municipal income are property taxes—$14.6 million more than expected thanks, in part, to the dissolution of redevelopment agencies—and $1.9 million extra dollars from hotel room taxes. However, sales taxes, franchise fees and some other revenue sources are below what was budgeted.
Once certain accounting adjustments are made, about $3.6 million should be available for spending this fiscal year, according to the report.
Among the recommendations for using the surplus:
- $1.1 million for replacing police equipment, such as gas masks, body armor, shields and shotguns.
- $500,000 to the fire department to replace a cliff rescue vehicle.
- $500,000 for a traffic management plan for Balboa Park
- $400,000 to install two long-awaited public restrooms in the East Village.
- $300,000 to support the the Balboa Park centennial celebration in two years
- $300,000 to extend the city's emergency homeless shelter through June.
- $200,000 for maintenance at Mission Trails Regional Park.
- Another $300,000 would remain unbudgeted for the time being and will be added to the beginning balance of the next fiscal year if it's not used.
Council President Todd Gloria and Councilman David Alvarez questioned some of the requests, primarily the legality of extending the homeless shelter program and whether funding had been identified for maintaining the restrooms.
Gloria said his office has not been informed about any Balboa Park traffic management plan, and he represents the area.
He called for a report on the scope of the project, its timeline and details on public outreach.
The council members voted unanimously to forward the report to the full City Council but without recommendation on the spending suggestions.
The city is facing a shortfall of up to about $40 million for the fiscal year that begins July 1 due to adverse rulings on the end of redevelopment and a higher-than-expected required contribution to its employee pension fund.
—City News Service