City of San Diego Finances?

[gandalf]

Isn’t it interesting how the City of San Diego has managed thus far to avoid bankruptcy? Any insights? Will it be able to stay afloat if tax revenues and contributions from the state fall in the months ahead?

[Aecetia]

I think they will have to pay the piper eventually. They have been robbing the sewer fund for years and deferring maintenance to pay for those overblown retirements complete with phantom (non-worked) years. I am surprised that Michael Aguirre has not gone after more of the players yet. Maybe he is building a case. I am not saying I support all of the drama he is involved in there, but at least he is not a yes man.

[Aecetia]

I think they will have to pay the piper eventually. They have been robbing the sewer fund for years and deferring maintenance to pay for those overblown retirements complete with phantom (non-worked) years. I am surprised that Michael Aguirre has not gone after more of the players yet. Maybe he is building a case. I am not saying I support all of the drama he is involved in there, but at least he is not a yes man.

[Aecetia]

I think they will have to pay the piper eventually. They have been robbing the sewer fund for years and deferring maintenance to pay for those overblown retirements complete with phantom (non-worked) years. I am surprised that Michael Aguirre has not gone after more of the players yet. Maybe he is building a case. I am not saying I support all of the drama he is involved in there, but at least he is not a yes man.

[Aecetia]

I think they will have to pay the piper eventually. They have been robbing the sewer fund for years and deferring maintenance to pay for those overblown retirements complete with phantom (non-worked) years. I am surprised that Michael Aguirre has not gone after more of the players yet. Maybe he is building a case. I am not saying I support all of the drama he is involved in there, but at least he is not a yes man.

[Aecetia]

I think they will have to pay the piper eventually. They have been robbing the sewer fund for years and deferring maintenance to pay for those overblown retirements complete with phantom (non-worked) years. I am surprised that Michael Aguirre has not gone after more of the players yet. Maybe he is building a case. I am not saying I support all of the drama he is involved in there, but at least he is not a yes man.

[EconProf]

The City has used a lot of tricks to avoid fiscal realities, but soon will not be able to dodge a number of shocks:
1. Property tax revenues have increased about 10% annually lately due to the RE boom. Significant time lags delay the revenue hit, but it is now coming and it is big.
2. Sales tax revenues will be hit with the recession all but here–again, time lags delay its impact.
3. Development Services revenue will fall with the current drop-off in building.
4. Deferred maintenance games can no longer be played. Other costs will also come home to roost–fuel, pension, hiring needs (we do have one of the leanest personnel staffing levels compared to other cities, so can’t cut there).

One of the likely revenue raisers is a big jump in the property transfer tax when you buy a property. It is far bigger in other parts of the country, and so is an easy target. Another target is our relatively low TOT, as compared to other tourist destinations. And, of course, the sales tax, a prodigous revenue raiser when hiked.

[EconProf]

The City has used a lot of tricks to avoid fiscal realities, but soon will not be able to dodge a number of shocks:
1. Property tax revenues have increased about 10% annually lately due to the RE boom. Significant time lags delay the revenue hit, but it is now coming and it is big.
2. Sales tax revenues will be hit with the recession all but here–again, time lags delay its impact.
3. Development Services revenue will fall with the current drop-off in building.
4. Deferred maintenance games can no longer be played. Other costs will also come home to roost–fuel, pension, hiring needs (we do have one of the leanest personnel staffing levels compared to other cities, so can’t cut there).

One of the likely revenue raisers is a big jump in the property transfer tax when you buy a property. It is far bigger in other parts of the country, and so is an easy target. Another target is our relatively low TOT, as compared to other tourist destinations. And, of course, the sales tax, a prodigous revenue raiser when hiked.

[EconProf]

The City has used a lot of tricks to avoid fiscal realities, but soon will not be able to dodge a number of shocks:
1. Property tax revenues have increased about 10% annually lately due to the RE boom. Significant time lags delay the revenue hit, but it is now coming and it is big.
2. Sales tax revenues will be hit with the recession all but here–again, time lags delay its impact.
3. Development Services revenue will fall with the current drop-off in building.
4. Deferred maintenance games can no longer be played. Other costs will also come home to roost–fuel, pension, hiring needs (we do have one of the leanest personnel staffing levels compared to other cities, so can’t cut there).

One of the likely revenue raisers is a big jump in the property transfer tax when you buy a property. It is far bigger in other parts of the country, and so is an easy target. Another target is our relatively low TOT, as compared to other tourist destinations. And, of course, the sales tax, a prodigous revenue raiser when hiked.

[EconProf]

The City has used a lot of tricks to avoid fiscal realities, but soon will not be able to dodge a number of shocks:
1. Property tax revenues have increased about 10% annually lately due to the RE boom. Significant time lags delay the revenue hit, but it is now coming and it is big.
2. Sales tax revenues will be hit with the recession all but here–again, time lags delay its impact.
3. Development Services revenue will fall with the current drop-off in building.
4. Deferred maintenance games can no longer be played. Other costs will also come home to roost–fuel, pension, hiring needs (we do have one of the leanest personnel staffing levels compared to other cities, so can’t cut there).

One of the likely revenue raisers is a big jump in the property transfer tax when you buy a property. It is far bigger in other parts of the country, and so is an easy target. Another target is our relatively low TOT, as compared to other tourist destinations. And, of course, the sales tax, a prodigous revenue raiser when hiked.

[EconProf]

The City has used a lot of tricks to avoid fiscal realities, but soon will not be able to dodge a number of shocks:
1. Property tax revenues have increased about 10% annually lately due to the RE boom. Significant time lags delay the revenue hit, but it is now coming and it is big.
2. Sales tax revenues will be hit with the recession all but here–again, time lags delay its impact.
3. Development Services revenue will fall with the current drop-off in building.
4. Deferred maintenance games can no longer be played. Other costs will also come home to roost–fuel, pension, hiring needs (we do have one of the leanest personnel staffing levels compared to other cities, so can’t cut there).

One of the likely revenue raisers is a big jump in the property transfer tax when you buy a property. It is far bigger in other parts of the country, and so is an easy target. Another target is our relatively low TOT, as compared to other tourist destinations. And, of course, the sales tax, a prodigous revenue raiser when hiked.

[j]

Tic, tic, tic … I believe the bomb will go off soon, and city officials will be making comments like banking officials have made. How could we have seen this coming? I guess they can’t when they run every time the budget is mentioned.

They make dumb decisions far too often for the budget not to explode. Like giving the highest paid city employees a 6% raise and refusing to give lower paid employees a 4% raise. But the DROP program is the pinnacle of stupidity, encouraging employees to stop contributing to their pensions and offering them hundreds of thousands to do so? What actuary approved that idea?

[j]

Tic, tic, tic … I believe the bomb will go off soon, and city officials will be making comments like banking officials have made. How could we have seen this coming? I guess they can’t when they run every time the budget is mentioned.

They make dumb decisions far too often for the budget not to explode. Like giving the highest paid city employees a 6% raise and refusing to give lower paid employees a 4% raise. But the DROP program is the pinnacle of stupidity, encouraging employees to stop contributing to their pensions and offering them hundreds of thousands to do so? What actuary approved that idea?

[j]

Tic, tic, tic … I believe the bomb will go off soon, and city officials will be making comments like banking officials have made. How could we have seen this coming? I guess they can’t when they run every time the budget is mentioned.

They make dumb decisions far too often for the budget not to explode. Like giving the highest paid city employees a 6% raise and refusing to give lower paid employees a 4% raise. But the DROP program is the pinnacle of stupidity, encouraging employees to stop contributing to their pensions and offering them hundreds of thousands to do so? What actuary approved that idea?

[j]

Tic, tic, tic … I believe the bomb will go off soon, and city officials will be making comments like banking officials have made. How could we have seen this coming? I guess they can’t when they run every time the budget is mentioned.

They make dumb decisions far too often for the budget not to explode. Like giving the highest paid city employees a 6% raise and refusing to give lower paid employees a 4% raise. But the DROP program is the pinnacle of stupidity, encouraging employees to stop contributing to their pensions and offering them hundreds of thousands to do so? What actuary approved that idea?

[Author]

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