There were lots of ponies to go around Monday.
Mayor Kevin Faulconer’s first proposed budget includes money for larger police academies, expanded library hours, a temporary fire station in Skyline and $1.9 million for various homeless programs. And that’s just a sampling.
Somehow, Faulconer managed to dig up excess cash just months after city budget wonks predicted a $19 million shortfall.
The secret is in the assumptions. They’ve changed significantly since then-interim mayor Todd Gloria bluntly said the city didn’t have enough cash to “accommodate all the wishes and desires” the City Council had already voted to support.
Faulconer, who presided over significant budget cuts as a City Councilman, declared Monday that the city’s fortunes were changing thanks to past sacrifices and course corrections following the its pension crisis.
“We’re seeing the results of the reforms and the issues that we had to tackle,” Faulconer said Monday when he unveiled a roughly $1.2 billion day-to-day budget. (The total budget is nearly $3 billion.)
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Don’t forget, some of the City’s new-found property tax revenue is because Governor Brown terminated redevelopment.Property tax that used to go to the Redevelopment Agency is now going to the City General Fund.And Faulconer fought the termination of redevelopment every step of the way.But, I am glad he is now putting the money to better use.
@Brian Peterson Financial staff documented that only an annual $3.0 million in Tax Sharing Pass Through Payments will go to the City's General Fund for better uses in the 5 year Financial Outlook. (see Page 10)
This means the annual @ $200 million in former RDA Tax Increment is still being collected, separately outside the General Fund and controlled by the private Civic San Diego. The $1.6 Billion in ROPS-6 will take at least the next 15 to 30 years to paid. Therefore the Successor Agency will be winding down the former Redevelopment Agency (RDA) for at least the next 15 to 30 years.
In addition, there is still $123 million in Unencumbered Bond proceeds, and an unknown amount of Reserves and Other Income from leases and previous agreements, with an annual @ $20 million in Revenue that is still coming into the Redevelopment Property Tax Trust Fund (RPTTF).
@Brian Peterson 28 million is hardly a massive increase. My temporary property tax decrease due to the housing market is gradually being eliminated. Therefore I can only assume that the same is happening for hundreds of thousands of other people.
He certainly isn't the first mayor in recent times to base a budget based on rosy (and unrealistic) projections on income.
Yes indeed. Isn't it grand
@David Crossley Why do you think that they are unrealistic? Property values are going back up which does mean that our property taxes are starting to creep up. The temporary reductions due to the housing collapse are gradually being eliminated as housing prices increase. Likewise, it doesn't seem to hard to believe that a small increase in sales taxes will occur if the economy really is stabilizing.