City Council Supermajority Adopts Mayor’s FY2020 Budget to Deliver Largest Infrastructure Investment in City History

Monday, June 10, 2019 - NEWS RELEASE

San Diego – Today Mayor Kevin L. Faulconer won support from a City Council supermajority for his Fiscal Year 2020 Proposed Budget to fund the largest infrastructure investment in City history for the second year in a row while prioritizing funding for homelessness, the “Clean SD” initiative, housing reforms, road repair and neighborhood quality of life.

“This plan builds on the progress we’ve made over the past few years to put neighborhoods first and delivers the largest infrastructure investment in city history,” Mayor Faulconer said. “We’ve got a lot of work to do to reduce homelessness, make housing more affordable, fix our streets and clean up our neighborhoods, and this budget prioritizes each as we work together to solve San Diego’s biggest challenges.”

Despite a lean budget year and modest revenue growth, Mayor Faulconer’s $4.3 billion budget continues his commitment to investing in all neighborhoods by focusing on core community services. It includes funding for a major expansion of the popular “Clean SD” program to remove trash and debris from public spaces, the equivalent of 430 miles of street repair and key initiatives such as the Climate Action Plan, Pure Water San Diego, Vision Zero and the expansion of housing and homeless programs.

The annual budget for the Capital Improvement Program, which funds most infrastructure projects throughout the city, has seen massive growth since Mayor Faulconer took office. It has nearly quadrupled from $179.4 million in FY 2014 to an all-time high of $710.4 million in this budget. The total includes funding to begin construction of the first phase of Pure Water San Diego – a multi-year program that uses proven technology to clean recycled water to produce safe, high-quality water.

“I am pleased to see the Council approve a balanced budget, which includes the largest infrastructure investment in City history,” said City Councilmember Chris Cate. “We must continue to support our parks, libraries, and public safety personnel. Several critical investments in District 6 include the following: allocating $250,000 for my City of San Diego Police Officer Homebuyer Down-Payment Assistance Program, dedicating more than a million dollars to Olive Grove Park improvements in Clairemont, and investing $1 million in the Hickman Field Athletic Area in Kearny Mesa.”

Mayor Faulconer balanced this year’s budget with about $15 million in reductions spread across various General Fund departments, rolling over $35.6 million in surplus from the current fiscal year budget and the use of $10.7 million in excess funds available in risk management reserves, among other things. The reductions were made possible thanks in part to the Mayor’s directive to reduce the budget by 3 percent in many departments.

The structurally balanced budget follows responsible financial practices by ensuring that ongoing expenses are funded with ongoing revenues and that one-time expenses are paid for with one-time revenues. Budget highlights include:

• Fiscally responsible budgeting: Fully funding General Fund reserves to policy targets and making $350.6 million annual pension payment in full for 16th consecutive year
• Largest Capital Improvement Program in City history: $710.4 million
  • Street repair: $79.9 million to pave, repair and replace 430 miles of roads – putting the City on track to fix half of its nearly 3,000-mile street network during Mayor Faulconer’s tenure
  • Homeless services: $36.7 million for homelessness solutions and programs, including Bridge Shelters, interim housing programs, multifamily rehabilitation, Safe Parking Program sites, storage facilities, new Housing Navigation Center, rental assistance, and youth-serving homeless programs
    • $9.9 million from General Fund and Low to Moderate Income Housing Asset Fund
    • $12.7 million from Community Development Block Grants
    • $14.1 million from the State’s Homeless Emergency Aid Program through FY2021
• Cleaning up our communities: An additional $6.5 million to expand the “Clean SD” initiative to communities beyond Downtown, East Village, the Midway District and the San Diego River so personnel can provide a clean and safe environment at beach areas, canyons, parks and other open spaces throughout the city
• Climate Action Plan implementation: Over $350 million in projects and programs
• Public safety:
  • $8.4 million to continue with four academies of police recruits
  • $3.5 million for additional patrols by the Neighborhood Policing Division
  • $2.6 million for a relief pool division, two additional fire academies, a lifeguard academy, helicopter maintenance and pilot training, diversity training and a dedicated bomb squad unit
  • $250,000 for a police recruitment housing pilot program
• Mobility and Traffic Improvements: $14.3 million to improve infrastructure and bring new mobility choices to neighborhoods to meet the City’s Climate Action Plan and Vision Zero goals.
  • $11.9 million for projects to support Vision Zero safety goals, including bike facilities, sidewalks, traffic signals, crosswalks and traffic calming measures
  • $2.4 million for mobility programs and infrastructure projects supported by dockless mobility device fees
• Libraries: Maintaining library hours at the highest level in a decade
  • $345,000 to operate two new libraries (Mission Hills/Hillcrest and San Ysidro)
• Parks: Maintaining recreation center hours at the highest level in a decade
  • $1.6 million for operations and maintenance for five new facilities/open space in the Parks and Recreation Department (North Park Mini Park, East Fortuna Staging Area Field Station, and three joint-use parks with San Diego Unified)
• Housing: $600,000 for fee waivers for accessory dwelling units, also known as granny flats, and $100,000 for the Housing Affordability Program
• Arts & Culture: $14.3 million to maintain arts and culture funding at FY2019 levels minus 3 percent consistent with citywide reductions
• Equal Opportunity: $1 million to conduct the City’s first disparity study to review the City’s practices of hiring women-owned businesses, minority-owned businesses, and other companies that reflect San Diego’s diversity
• Other Highlights:
  • Brush management, $1.9 million
  • Graffiti abatement, $300,000
  • Compensation equity study, $250,000
  • Public Records Act program support, $150,000

The budget sets spending for city operations and capital projects for Fiscal Year 2020, which runs from July 1, 2019 through June 30, 2020. For more information, view the initial proposed budget online along with additional changes made during the May Revise.