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Fiscal year 2017/18 Proposed Budget released

Budget proposal reflects reality of rising pension costs. Requests for additional permanent positions and on-going programs pared down to bare minimum. City bracing for 2019 when expenses are projected to exceed revenues

April 24, 2017

Today Sacramento City Manager Howard Chan released an approximately $1 billion Fiscal Year 2017/18 Proposed Budget -– the City’s financial plan for the coming fiscal year July 1, 2017 through June 30, 2018. General Fund operations and capital projects total $450 million.  Operations and capital project funded by the City’s Enterprise funds total $584 million. The proposed budget supports 4,552 full-time positions. 

“The good news is revenues are projected to be $30 million higher than anticipated in the General Fund. We are fortunate to be experiencing dynamic growth and it is truly an exciting time in our City’s history,” said Chan.

However, the City Manager also expressed caution, given anticipated on-going cost increases as rising labor and pension costs are expected to exceed revenue by 2019. Measure U, the half-cent sales tax to restore services in Parks, Police and Fire Departments is also set to expire on March 31, 2019.  (See the budget forecast beginning on page 33 of the budget overview.) 

“I reviewed nearly $27 million in budget requests from the City’s operating departments. However, given the forecasted pension costs, we are proposing adding only $2.9 million in critical new positions and programs and all but $422,000 of that amount is offset by revenues or reimbursements to limit ongoing expenditure growth in the general fund,” explained Chan. (See page 22 of the budget overview for details.)

The Mayor and City Council members have been holding town hall discussions in their districts to hear from the public on priorities. Additionally, the budget will be discussed at the following City Council meetings at City Hall, 915 I Street:

  • Tuesday, May 9, 6 p.m.  
  • Tuesday, May 16, 2 p.m. and 6 p.m.

On Tuesday, May 23, at 2 p.m. and at 6 p.m., the City Council members are scheduled to discuss Council budget priorities. The budget is expected to be adopted on Tuesday, June 13, at the 6 p.m. City Council meeting.

The proposed budget includes funding for the expansion of the following programs and services: 

  • $2.5 million for the completion of Fire Stations 14 and 15
  • 311 Call Center staffing to respond to citizen calls 
  • A position to assist with pet adoptions at the City’s Front Street Animal Shelter
  • Additional staff to respond to increased development activity
  • Extra assistance in Code Enforcement to address abandoned vehicles
  • Police Department funding for body-worn cameras
  • Additional parks maintenance positions
  • $1.8 million for improvements to the City’s libraries and Camp Sacramento
  • Administrative support for the City’s Homeless Services team
  • Positions for Older Adult Services to meet program demand
  • Positions in the City’s Enterprise Funds to address security, water quality, and regulatory requirements
  • Youth jobs at City swimming pools

Contact: Linda K. Tucker, Media & Communications Officer, 916-808-7523,