LOS ANGELES — San Diego's five-year financial
Surpluses of $2.9 million in fiscal 2016 and $61.8 million are projected.
The majority of the additional revenue will go to priority initiatives such as infrastructure and neighborhood investments, public safety, technology improvements, and transparency and open data, according to a release from San Diego Mayor Kevin Faulconer's office.
The economy is growing again and the days of budget cuts appear to be over, Faulconer said in a prepared statement.
"With a modest surplus projected, the city must continue with a fiscally responsible and results-driven approach in order for more tax dollars to be invested in roads, parks and other neighborhood amenities," Faulconer said. "I will also continue to create more economic opportunities in San Diego so the revenue coming in continues to grow."
Moody's Investors Service upgraded San Diego's issuer rating to Aa2 from Aa3 and the city's lease revenue bonds to A1 from A2 and gave the city's bonds a stable outlook Nov. 12.
The mayor has pledged 50% of new major revenue growth, an anticipated $28.8 million in fiscal 2016, to be spent on infrastructure and neighborhood improvements, according to the outlook. Money for infrastructure would be spent on streets, sidewalks, storm water, park and recreation facilities, and libraries. Neighborhood improvements included expanded library hours and restoring parks and recreation services.
The city has an estimated $1 billion in needed infrastructure improvements. The City Council passed a five-year plan in 2013 to issue $500 million in bonds for such improvements.
In fiscal year 2017 through fiscal year 2020 the allocations to infrastructure and the other initiatives would shrink as major revenue growth slows, according to the forecast. New revenue growth is expected to peak at $57.5 million in fiscal 2016 and then grow by roughly half that amount each year from fiscal 2017 to 2020.
Faulconer has until April 2015 to present his proposed fiscal year 2016 budget to the City Council. The financial outlook helps form the basis for the discussion leading up to the budget presentation.
