City Manager releases fiscal year 2015 budget
Revenues exceed expenses for first time in seven year; 14 police officers being added
Today Sacramento City Manager John Shirey released the Fiscal Year 2014/15 Proposed Budget. The proposed $383 million General Fund portion of the $872 million balanced budget represents the first time in seven years revenues are expected to exceed expenses and does not include any reductions in services, programs or employees. The City will be in the black by an estimated $2 million. The budget also includes the addition of 14 police officers as a result of the Measure U half-cent sales tax.
“The City is on a path to recovery from the worst recession in recent history. We do expect to be in the black the next two years. Additionally, we’ve been able to budget for a few new measures that will initiate or improve services for residents,” explained City Manager John Shirey. Among the proposed initiatives: additional resources to help address homelessness, and food and medical needs at the animal shelter.
Thanks to Measure U an additional $31 million per year is being generated to restore the police force, eliminate fire company “brownouts”, open City swimming pools, reopen community centers, and restore senior and youth programs. Learn more about Measure U here.
While the City Manager is pleased the City should be in the black for two years, he warns of a fiscal cliff that looms over 2017 through 2020. In the fiscal year 2016/17 budget, growing pension costs will result in at least a $2.3 million deficit that is projected to grow to $41 million by fiscal year 2019/20. Revenue attributable to the loss of Measure U which ends March 31, 2019 is estimated to be $36.3 million. Pension costs for employees will have risen to $4.75 million per year. The employer share of pensions is going to increase by 66 percent.
The entire proposed budget totals $872 million and supports 4,146.37 full time equivalent positions, as compared to 5300 positions prior to the recession. Besides the $383 million for the General Fund, there is $489 million for Enterprise and other fund operations and capital projects. The Proposed Budget adds $400,000 to the General Fund Economic Uncertainty Reserve. The fund will then total $29 million, or 7.5 percent of General Fund revenues, for emergencies or future economic downturns.
The public hearing process begins at City Council on Thursday, May 8, with final adoption of the budget expected on Tuesday, June 10. All community members are invited to attend the budget meetings. Please visit City of Sacramento, for regular budget updates and current information.