Quantcast
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs

City Checks Its Math on Five-Year Financial Outlook

When the mayor's office released the City's 2012–2016 five-year financial outlook on February 1, there was cause for celebration. The outlook revealed that next year's $72.5 million budget shortfall had shrunk by $28 million due to increased sales tax and transient occupancy tax revenues.

During the February 9 budget and finance committee meeting, Mark Leonard, director of financial management, said the math was wrong.

"The original [five-year financial outlook] released last week contained a technical error in the forecast mechanism," Leonard told the committee.

Leonard went on to say that $10.2 million of transient occupancy tax expected for the City's general fund was "double counted."

"As a result, the fiscal year 2012 projected deficit is $56.7 million, not the $46.5 million as originally projected," said Leonard. "Nothing else changed, it was just this one assumption."

The deficits will continue. The City's financial department predicts the deficit will grow to $61.9 million in 2013. The budget outlook improves in the following years, shrinking to $54.9 million in 2014; in 2015, $33.1 million; and in 2016, the shortfall is expected to be $8.8 million.

San Diego's financial managers foresee "uncertain recovery." They expect home values to grow and consumer spending and transit occupancy tax revenues to increase. However, those bright notes are muted by high unemployment rates and decreased home sales.

During the meeting, Leonard did admit that some future savings from programs such as "managed competition" and the mayor's Parking Utilization Plan were not included in the forecast because the actual savings are undetermined and would "simply be a guess."

Here's something you might be interested in.
Submit a free classified
or view all

Previous article

Can You Escape?, Vote Ready Concert, I Love a Clean San Diego

Events August 13-August 15, 2020
Next Article

The glamour and crime of Tijuana

Club Campestre abduction, cross-border prostitution, Russian-owned gym, TJ's new night scene

When the mayor's office released the City's 2012–2016 five-year financial outlook on February 1, there was cause for celebration. The outlook revealed that next year's $72.5 million budget shortfall had shrunk by $28 million due to increased sales tax and transient occupancy tax revenues.

During the February 9 budget and finance committee meeting, Mark Leonard, director of financial management, said the math was wrong.

"The original [five-year financial outlook] released last week contained a technical error in the forecast mechanism," Leonard told the committee.

Leonard went on to say that $10.2 million of transient occupancy tax expected for the City's general fund was "double counted."

"As a result, the fiscal year 2012 projected deficit is $56.7 million, not the $46.5 million as originally projected," said Leonard. "Nothing else changed, it was just this one assumption."

The deficits will continue. The City's financial department predicts the deficit will grow to $61.9 million in 2013. The budget outlook improves in the following years, shrinking to $54.9 million in 2014; in 2015, $33.1 million; and in 2016, the shortfall is expected to be $8.8 million.

San Diego's financial managers foresee "uncertain recovery." They expect home values to grow and consumer spending and transit occupancy tax revenues to increase. However, those bright notes are muted by high unemployment rates and decreased home sales.

During the meeting, Leonard did admit that some future savings from programs such as "managed competition" and the mayor's Parking Utilization Plan were not included in the forecast because the actual savings are undetermined and would "simply be a guess."

Sponsored
Here's something you might be interested in.
Submit a free classified
or view all
Previous article

Imagine a pedestrian-friendly Kearny Mesa

Hard to consider history in 30-year plan
Next Article

North Park – the prime quartier

30th Street parking, Georgia Street bridge, PSA crash, water tower, North Park Main Street
Comments
3

Dorian, Was that twice-counted $10.2 million TOT the hotel-visit tax that goes into the General Fund?

And how many dollars is the TOT known as the Tourism Marketing Tax, which goes into the hoteliers' private accounts, for their use, to promote their hotels to out-of-towners?

Feb. 10, 2011

InOmbra,

Yes, the hotel tax (TOT) was double counted and it is deposited into the General Fund.

As for how much of that money is from the Tourist Marketing District assessment, here's the breakdown:

"TOT is computed at 10.5% of taxable rent and collected from the transient. The TMD assessment fee is 2% of the assessable rent."

Feb. 11, 2011

Thanks, Dorian. The GF could sure use those TMD dollars, and could be a lot higher...I've paid much higher hotel taxes in other cities.

Feb. 11, 2011

Sign in to comment

Sign in

Art Reviews — W.S. Di Piero's eye on exhibits Ask a Hipster — Advice you didn't know you needed Best Buys — San Diego shopping Big Screen — Movie commentary Blurt — Music's inside track Booze News — San Diego spirits City Lights — News and politics Classical Music — Immortal beauty Classifieds — Free and easy Cover Stories — Front-page features Excerpts — Literary and spiritual excerpts Famous Former Neighbors — Next-door celebs Feast! — Food & drink reviews Feature Stories — Local news & stories From the Archives — Spotlight on the past Golden Dreams — Talk of the town Here's the Deal — Chad Deal's watering holes Just Announced — The scoop on shows Letters — Our inbox [email protected] — Local movie buffs share favorites Movie Reviews — Our critics' picks and pans Musician Interviews — Up close with local artists Neighborhood News from Stringers — Hyperlocal news News Ticker — News & politics Obermeyer — San Diego politics illustrated Of Note — Concert picks Out & About — What's Happening Overheard in San Diego — Eavesdropping illustrated Poetry — The old and the new Pour Over — Grab a cup Reader Travel — Travel section built by travelers Reading — The hunt for intellectuals Roam-O-Rama — SoCal's best hiking/biking trails San Diego Beer News — Inside San Diego suds SD on the QT — Almost factual news Set 'em Up Joe — Bartenders' drink recipes Sheep and Goats — Places of worship Special Issues — The best of Sports — Athletics without gush Street Style — San Diego streets have style Suit Up — Fashion tips for dudes Theater Reviews — Local productions Theater antireviews — Narrow your search Tin Fork — Silver spoon alternative Under the Radar — Matt Potter's undercover work Unforgettable — Long-ago San Diego Unreal Estate — San Diego's priciest pads Waterfront — All things ocean Your Week — Daily event picks
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
Close