Chula Vista has approved its budget for the 2022-23 fiscal year and it includes funding for increased staff, a new fire school and infrastructure repairs.
Members of the Council last week adopted a spending plan $534 million, including $249 million for its general fund, which pays for day-to-day operations, $51 million for capital improvement projects and youit remains for funds that pay for operations such as sewers or maintaining green space districts.
The city’s current general fund spending is $218 million, meaning it will spend $31 million more in the new fiscal year that begins July 1. The city plans a balanced budget, but expects general fund revenues to decline from 2028 after Measure P expires.
The main revenue drivers in fiscal year 2022-23 are increases of $1.6 million in franchise fees, $3.4 million in property taxes and motor vehicle registration fees, 3 $.8 million in sales tax revenue and $5.7 million in Measure A and Measure P revenue, said Ed. Prendell, the city’s budget manager.
Measure P is the half-cent infrastructure sales tax that voters passed in 2016 and expires in 2027. It is expected to raise about $26 million next year. Once this sales tax expires, the city expects expenses to exceed revenues. Chula Vista could see its deficits rise from $1.5 million in 2024 to $12 million in 2031, according to the city’s long-range financial plan for fiscal year 2023-32.
“It is important to emphasize that the (long-range financial plan) is not a budget and that if planned expenditures exceed projected revenues in a given year, the city manager will need to identify measures to mitigate the deficits in order to present a balanced budget, as required by law, to city council for consideration,” said city chief financial officer Sarah Schoen.
Measure A, approved by voters in 2018, is a half-cent sales tax to support public safety staffing. With the unanimous support of the board, the Measure A fund now has a policy requiring it to maintain 60-day reserve levels “to address unexpected financial impacts associated with a significant economic downturn,” according to a staff report from the fund. town. The budget includes nine additional Measure A-related items, which will not be affected by economic hardship because the city will have reserves to fall back on, City Manager Maria Kachadoorian said.
In addition to those nine positions, the city added 30 more in various departments, including parks and recreation, animal care, engineering and transportation, which include paramedics and emergency medical technicians. According to the budget, six of the 39 positions were made possible with American Rescue Plan Act dollars.
Within its general fund, the largest expense is staff costs. Chula Vista will increase costs by $5.4 million over the current year for a total of $103 million. Most of these increases are budgeted for salary increases. The city plans to pay an additional $5.3 million for salaries. Health insurance, retirement costs, city liability insurance and utility costs also increased spending.
Below is a breakdown of where Chula Vista will spend its $249 million for general funds:
- $96.5 million for non-departmental;
- $53 million for its police department;
- $30 million for its fire department;
- $14 million for public works;
- $12 million for parks and recreation;
- $10 million for engineering;
- $4 million for information technology
- $4 million for funding
- $4 million for economic development
- $3.5 million for its library
- $3 million for the city attorney
- $3 million for animal care
- $3 million for human resources
- $2.6 million for developmental services
- $2.5 million for administration
- $1.6 million for the city council
- $1.3 million for the City Clerk
- $900,000 for advice and commissions
As part of the spending, the city will spend $8 million to rebuild the Loma Verde Community Center, $1.4 million for a new fire academy to address projected vacancies and attrition in the fire department. fire, as well as $1 million for two new parks and park maintenance staff. and tree pruning services.
Of Chula Vista’s $57.5 million in ARPA funding, its second allocation of $28 million is expected to be received in the coming weeks, Prendell said. The board approved a plan to set aside $17 million for revenue recovery, $10 million for more COVID-19 testing and immunization and ventilation upgrades, and $600,000 as salary extra for essential workers.
The city has until December 31, 2026 to spend the federal money.
