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FY: 2017Executive SummaryExecutive SummaryCITY OF SAN DIEGOADOPTED BUDGETMAYOR KEVIN L. FAULCONER

Executive SummaryThe City of San Diego's Fiscal Year 2017Adopted Budget is 3.4 billion and is comprisedof five operating fund types and the CapitalImprovements Program (CIP):Total City Expenditures Fiscal Years2016-2017 by Fund Type/Program(in millions)Fund Type/Program General Fund;General Fund Special Revenue Funds;Special Revenue Funds1 Capital Project Funds;Capital Project Funds Enterprise Funds;Enterprise Funds Internal Service Funds; and Capital Improvements ProgramThis represents an increase of 112.7 million or3.4 percent compared to the Fiscal Year 2016Adopted Budget.FY 2016 1,288.0 1,338.0486.1506.913.213.31,007.0990.8Internal Service Funds113.1117.9Capital Improvements Program367.6421.0 3,275.0 3,387.8Total1The Engineering & Capital Projects Fund was reclassified from an Internal Service Fund to a Special Revenue Fund in Fiscal Year 2016.Total City FTE Positions Fiscal Years2016-2017 by Fund TypeThe Fiscal Year 2017 Adopted Budget includesa total of 11,345.11 Full-Time Equivalent (FTE)Fund TypeFY 2016positions, representing an increase of 304.227,299.48FTE positions or 2.8 percent compared to the General FundFiscal Year 2016 Adopted Budget. These new Special Revenue Funds872.30positions are primarily focused on maintenanceEnterprise Funds2,475.08and repair of City streets, sidewalks and street331.03lights, flood risk mitigation, storm water quality, Internal Service FundsFire-Rescue Department staffing, staffing for Other Funds63.00new parks and recreation centers, engineeringTotal11,040.89support, and facilities maintenance.In 2015, the Mayor released a new CityStrategic Plan which defines the City's mission,vision, values, goals, objectives, and keyperformance indicators. It sets the framework forCity employees' work and gives branches anddepartments the foundation to develop tacticalplans to implement the Strategic Plan.Budget ProcessThe annual operating budget is developed inconjunction with the Mayor, City Council, Citydepartments, Independent Budget Analyst andpublic input. The Budget Process consists ofthree main phases: budget development,budget review, and budget adoption.FY 2017FY 20177,530.69925.052,481.79344.5863.0011,345.11The budget development phase began with therelease of the Five-Year Financial Outlook forFiscal Years 2017-2021 on November 13, 2015,which created the framework for thedevelopment of the Fiscal Year 2017 AdoptedBudget.Next, City departments submitted budgetrequests that were then analyzed, reviewed,and prioritized by City management. GeneralFundrevenueswereprojectedandexpenditures balanced through the budgetingprocess and included in the Fiscal Year 2017Proposed Budget, along with changes to thenon-general funds and CIP.During the budget review phase, the CityCouncil held a series of public meetings to-3-City of San DiegoFiscal Year 2017 Adopted Budget

Executive Summaryobtain input from San Diego residents onspending priorities. The Mayor and Councilmembers used the information at these hearingsto recommend changes to the Fiscal Year 2017Proposed Budget. The City Council approvedthe budget on June 13, 2016, and final changesto the budget were implemented. On July 11,2016, the City Council adopted theAppropriation Ordinance, enacting the FiscalYear 2017 Adopted Budget into law.General Fund OverviewThe Fiscal Year 2017 Adopted Budget includesGeneral Fund expenditures of 1.3 billion andthese expenditures are supported by acombination of revenues and unrestricted fundbalance to fund reserves, infrastructure, publicsafety needs, neighborhood improvements andservices, and enhanced transparency.Departments within the General Fund providecore community services, such as public safety(including police and fire protection), park andrecreation, library services, and refusecollection, as well as vital support functions suchas finance, legal, and human resources. Thesecore services are primarily supported by majorrevenue sources that include property tax, salestax, transient occupancy tax, and franchise fees.These major revenue sources total 970.7million, which accounts for 73.0 percent of theCity’s General Fund revenue in the Fiscal Year2017 Adopted Budget.As projected in the Fiscal Year 2017-2021Outlook, revenues are anticipated to continue tomodestly improve in Fiscal Year 2017. While theFiscal Year 2017 Adopted Budget incorporatesmoderate revenue growth, the growth rateshave been modified slightly from the growthrates included in the Outlook. Modifications togrowth rates include a slight increase in theprojected property tax growth, offset by adecrease in projected sales tax growth.Projected growth rates for Fiscal Year 2017 forthe City’s major General Fund revenuecategories are as follows: Property Tax: 5.25 percent Sales Tax: 3.5 percentCity of San DiegoFiscal Year 2017 Adopted Budget Transient Occupancy Tax: 6.0 percent Franchise Fees: SDG&E: 2.0 percent Cable: 0.0 percentWhile the City’s local and regional economicindicators remain mostly positive, economicuncertainty exists both in the stock market andmajor sales tax generating categories. Thiseconomic uncertainty makes Fiscal Year 2017an important year to continue building andenhancing the City's reserves. Therefore, theFiscal Year 2017 Adopted Budget includestransferring a total of 10.4 million to adequatelyfund the General Fund Reserve, Public LiabilityReserve, and the Workers’ CompensationReserve.Service Enhancements and AdjustmentsAs a result of the continuing modest positivetrends in revenue growth, the Fiscal Year 2017Adopted Budget includes a number of serviceenhancements for the residents of San Diego.These service enhancements focus on fourmain areas: repairing streetsinfrastructure;andinvestingin safe and livable neighborhoods; an economically prosperous City withopportunity in every community; and excellent customer service and opengovernment.The list below highlights some of these keyenhancements.Repairing Streets and Investing inInfrastructureThe Repairing Streets and Investing inInfrastructure category includes allocations forstreets, sidewalks, storm water, park andrecreation facilities, and libraries, anddemonstrates the Mayor’s pledge of dedicatingat least 50 percent of new major revenue growthto investments in infrastructure. In the FiscalYear 2017 Adopted Budget, new major GeneralFund revenue growth is projected to be 31.9million, resulting in a 15.9 million minimumtarget allocation to infrastructure improvements.-4-

Executive SummaryThe Fiscal Year 2017 Adopted Budget includesa net 21.8 million in new infrastructureexpenditures, exceeding the minimum target fora third consecutive fiscal year. Flood Risk Management: funding andpositions for projects related tomanaging flood risks within the City.Water Quality: funding and positions forcatch basin cleaning.Street Lights: additional funding for CIPprojects to upgrade existing street lightcircuits.Sidewalks: additional funding for therepair and reconstruction of sidewalks,curbs, and gutters citywide.Park Improvements: funding for a parkmasters plan, artificial turf, playgroundoutlayandrubberizedsurfacing,playground improvements and repairs,and upgrades to Balboa Park andMission Bay Park.Compressed Natural Gas FuelingStation: additional funding for a newCompressed Natural Gas (CNG) fuelingstation at the Environmental ServicesOperations Station.ZeroWaste:fundingfortheimplementation of the City’s Zero WastePlan.Facilities Maintenance: funding forfacility condition assessments andpositions that will help the upkeep andpreventative maintenance for GeneralFund owned and operated facilities.Safe and Livable NeighborhoodThe Safe and Livable Neighborhood categoryfocuses on critical programs and projects withthe purpose of increasing public safety. Fire Academies: addition of one Fireacademy for a total of two ongoingacademies to maintain staffing in theFire-Rescue Department.Expanded Academies: funding toincrease the number of fire academyparticipants from 36 to 48 in Fiscal Year2017.-5- Staffing for Fire Stations and Fire FastResponse Squads: funding of positionsrelated to the conversion of overtime toFTE position budget for two Fire Stationsand two Fast Response Squads.Fire Dispatchers: positions to increaseservicelevelsattheFirecommunications center.AdvancedLifeguardAcademy:additional funding for positions andequipment needed to maintain adequatelevels of trained lifeguards.Lifeguard Positions: additional fundingand positions to increase staffing atOcean Beach and Sunset Cliffs.Police Recruitment and Retention:funding for the implementation of thememorandum of understanding (MOU)between the City and the San DiegoPolice Officers Association and newinitiatives to improve the recruitment andretention of police officers.Sworn and Civilian Positions: fundingfor sworn and civilian positions in thePolice Department.Crime Lab Unit: funding of positions tosupport the Crime Lab Unit.Body Worn Cameras: funding for thepurchase of body worn cameras for newofficers and to implement the programthroughout the entire Police Department.911 Dispatcher Recruitment andRetention: funding for Police Dispatcherrecruitment and retention efforts.Improvement/Maintenance of PoliceFacilities: funding for the maintenanceand improvement of police facilities usedon a 24/7 basis.Fire and Police Overtime Budget:funding to align overtime budget withhistorical expenditure levels.Training: funding with the purpose ofdeveloping a skilled and effective publicsafety workforce.MissionBeachSummerTrashCollection: funding for a second weeklytrash collection in the Mission BeachCity of San DiegoFiscal Year 2017 Adopted Budget