City facing new budget issues

City News Service

City financial management officials told the City Council Monday that a possible spate of early retirements and higher fuel costs could put the budget out of balance by nearly $6 million by the end of this fiscal year.

The city is already on track to spend $772,000 more than it is taking in, based on actual revenues and expenses in the first quarter of this fiscal year, according to a report delivered to council members.

Because of changes enacted for the retiree health system, early retirement pay could jump by $3.3 million, said Mark Leonard, the financial management director.

Jay Goldstone, the city’s chief operating officer, called it a “potential exposure” for higher spending, the amount of which should be clearer in a few months.

Leonard said gas prices, which remained high in the July-September time period, could add $1.7 million to expenses this year. He noted that fuel costs have dropped in recent weeks and said he hopes the trend continues.

Leaving out the unknowns of the early retirement costs and future gas prices, actual first quarter results for revenues and expenses were close to projections in the budget, with a variance at the end of the fiscal year expected to be no more than 1 percent, he said.

The results also show that city reserves are on track to be around $101.1 million, or 8.9 percent of the general fund, according to Leonard. The city target for reserves is 8 percent.

Related posts:

  1. City’s top operating officer advises caution on library, rec center moves
  2. Council gets report on state of city’s streets
  3. Council to send Sanders a budget priority list
  4. San Diego council committee OKs budget priority list
  5. COO: If tax measure fails, city faces $23 million in cuts

Short URL:

Posted by Staff on Dec 5, 2011. Filed under News, Region. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Leave a Reply

La Jolla Community Calendar


Bottom Buttons 1

Bottom Buttons 2

Bottom Buttons 3

Bottom Buttons 4

Bottom Buttons 5

Bottom Buttons 6

RSS North Coastal News

  • Balkan folk music on tap Aug. 27 at Carmel Valley library August 20, 2014
    A special free family program of Balkan folk music, sponsored by the Friends of the Carmel Valley Library will be presented at 7 p.m. Wednesday, Aug. 27 in the library’s community room. […]
  • Del Mar bodysurfer winner at world championships August 20, 2014
    Dr. Chris Lafferty, 56, of the Del Mar BodySurfing Club won first place in the 2014 World Bodysurfing Championships in the Mens 55-64 years age division. […]
  • Fall Ball program coming to North Coast area August 20, 2014
    BaseballASAP is pleased to announce that it is offering a 2014 North Coastal Fall Ball program to serve Carmel Valley, Del Mar, Solana Beach, Rancho Santa Fe, Cardiff, Encinitas, and Carlsbad. […]