For the first time in seven years, the City of Sacramento has presented an annual budget with a surplus to the City Council. But the City is worried the good times won't last.
The budget forecast includes a $2 million surplus next fiscal year and a $1.5 million surplus the following year.
The City's Linda Tucker says increasing pension costs will cause a $2 million deficit in the 2016-17 fiscal year. In 2019, the loss of Measure U funds for services will add another 37 million dollars to the deficit.
"The deficit, if nothing is changed by 2020, will grow back into the double digits of $41 million," Tucker says.
The City forecasts a general fund deficit beginning in the 2016-17 fiscal year and increasing every year after.
The City credits falling unemployment, higher sales tax revenue, and higher property values for the surplus it expects for the next two years.
The Sacramento City Council will vote on the budget May 8th.
2014-2015 City of Sacramento Budget Overview
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