Chula Vista's new budget adds $16M to expand public safety and homeless services

Chula Vista’s newly adopted budget will expand its public safety and homeless services with more than a dozen staff positions and new infrastructure.

The City Council on Tuesday approved a $274 million spending plan, which adds $16 million over the current budget and avoids deep cuts confronting neighboring jurisdictions such as San Diego and National City, as well as the state.

And while the city expects to break even with its projected revenues and without using its operating reserves, it anticipates slow economic growth.

“Things are going to be very challenging in the future,” said Mayor John McCann.

The city could see deficits of up to $2.1 million between next year and 2028 if it fails “to make a concerted effort to monitor the growth of revenues in comparison to expenditures,” according to the city’s long-term financial plan for fiscal years 2025-34 .

“Right now, we have done a great job at making sure that we have fully funded reserves, making sure that we have the pension obligation trust fund … and make sure that we can maintain as many employees as possible … and make sure that we don’t cut services from our community,” said McCann.

Chula Vista will prioritize these expenses for fiscal year 2024-25, which begins July 1:

• Open a new fire station by the bayfront;
• Open Casa Casillas, a new arts center on Fourth Avenue that was once a YMCA building;
• Grow Parks and Recreation programming;
• Grow the city workforce with more than one dozen positions for homeless services, park rangers to assist the Homeless Outreach Team, firefighters to staff the forthcoming Bayfront Fire Station and engineering to help execute infrastructure projects;

A large portion of the city’s budget increase will cover the new staff positions and salary raises, as well as $2.3 million more in retirement costs, nearly $1 million more in health care benefits and about $2 million in liability insurance premiums.

New internal leadership is also expected at the direction of City Manager Maria Kachadoorian. The city’s former deputy city manager , as well as the chief sustainability officer who led smart city initiatives, were recently fired. Kachadoorian said earlier this month the city will recruit a new deputy city manager overseeing the Economic Development Dept., which oversees major projects such as the forthcoming bayfront hotel and convention and efforts to bring a university to the Otay Ranch area. The budget does not reflect a replacement for the chief sustainability officer, though it mentions continuing efforts to implement Smart Cities initiatives.

The budget forecasts property tax revenues at $52 million, an increase of nearly $4 million from the current year due to anticipated new development. Sales tax revenue is expected to rise from $45.8 million to $48 million, a 5 percent jump largely because of more online sales. And hotel tax revenue is projected to slightly increase, from $9.4 million to $10 million.

The city’s $81.2 million Capital Improvement budget will mostly go toward roadway work, such as widening Main Street from Nirvana Avenue to Heritage Road to a six-lane road, paving major and local streets, and making pedestrian and guardrail improvements.

Other projects include constructing a new training facility for 230 fire and EMS personnel, rehabilitating the Telegraph Canyon sewer basin, repairing parks, and constructing Patty Davis Park on D Street and Woodland Avenue.

This story originally appeared in San Diego Union-Tribune .