On May 11, the Chula Vista City Council voted unanimously to accept the city manager’s proposed budget for fiscal year 2021-22. The budget comes back to Council on May 25, with a public hearing to allow the community to participate in the budget process.
The combined budget for all City funds totals $472.9 million including a General Fund operating budget of $218.1 million and a Capital Improvement Program (CIP) budget of $49.2 million.
The budget also includes $18.5 million in Measure A and $42.6 million in Measure P funds. The Measure A and Measure P Citizens’ Oversight Committees affirmed that the proposed fiscal year budgets follow the adopted Measure A and Measure P expenditure plans.
City Manager Maria Kachadoorian said once again, the budget is balanced without dipping into reserves, uses conservative projections for incoming revenues, and that there are no proposed layoffs.
“We are actually proposing to increase the budget in some areas which are in great need of additional support,” said Kachadoorian. “The proposed budget does not include the $57.5 million we were just confirmed for that we will be receiving under the American Rescue Plan. That will be coming back to Council as a separate item once we receive input from departments and the community. We will be bringing back a spending plan for Council’s consideration. We have until December 2024 to spend these funds.”
Ed Prendell, Finance Department budget manager said with long term financial plan revenues, major assumptions include the waning impact of COVID-19 on the city’s major revenues, including Transient Occupancy Tax from new hotels and short term rentals. He said cannabis revenues are projected at $2.8 million, a conservative number utilizing local and regional revenues and the cannabis businesses that are scheduled to open in the city this fiscal year.
“Personnel cost inflation is projected at two percent,” he said. “Pension costs are no longer a major impact, but health insurance continues to be a major driver in expenditures.”
He said the budget includes the commitments to the Bayfront project and committing money to reserves for pension debt. He said major uncertainties are fiscal stimulus and how they are turned back, COVID-19 fiscal impacts, how quickly the economy opens, and the future stability of the stock market.
Mayor Mary Casillas Salas complimented staff for a budget that “was well done.”
“We move forward looking very hopeful and our budget looking strong for now,” she said. “I want to thank our staff for being prudent and judicial in the way we have structured our city, handled the pandemic, and did all of the fiscally responsible things to make sure that our city did not fall into a financial crisis.”
To view the proposed Chula Vista FY 2021-22 budget or to provide comments, visit www.chulavistaca.gov/budget.
