San Diego's infrastructure deficit to top $6.5B in five years, budget analyst says
SAN DIEGO (FOX 5/KUSI) — San Diego is projected to reach a $6.5 billion infrastructure deficit over the next five years, the city's independent budget analyst said in a report released on Thursday.
The deficit, which describes the shortfall between spending on infrastructure and the estimated cost of work needed to maintain it, is a predicament that is likely to weigh heavy on city leaders as they work to approve a budget for the next fiscal year.
The report was released ahead of Monday's city council meeting where Mayor Todd Gloria's office is set to present a five-year planning outlook on capital infrastructure projects.
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Per the report, the city will only have about $5.36 billion in funding over the next five years to put towards infrastructure needs. Meanwhile, the cost to meet these needs is expected to balloon to $11.87 billion, primarily from stormwater, fire department and lifeguard projects.
Without any new sources of revenue, the budget analyst says the city's backlog of unaddressed maintenance projects will continue to build up, leading to continued infrastructure deterioration that will precipitate more costly rehabilitations and improvements in the long term.
'While having a clear and executable capital plan is essential, it must be supported by sufficient resources and revenue streams to be effectively implemented,' the report reads.
'A comprehensive financing strategy, including identification of new revenue sources, remains critical to closing the growing capital funding gap and ensuring the City can meet its long-term infrastructure needs,' it continues.
According to the budget analyst, a growing need for assets in the city's general fund — the unrestricted pool of money used to finance most city services — is the main driver of the rising deficit, even for departments that have a dedicated, restricted funding source.
Among those in this boat is the city's Stormwater Department, which receives its resources through a patchwork of sources encompassing everything from loans and bonds pulled from the general fund to revenue collected through property owners' water bills.
The budget analyst estimates stormwater needs will top more than $4.1 billion, nearly double what it was projected to be in the department's last outlook due to cost increases in existing projects and the need to replace additional infrastructure that is 'now beyond its useful life.'
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Of these projects, the city will only be able to cover about $394.4 million over the next five years at current funding levels, according to the report.
The budget analyst recommends San Diego leaders revisit a stormwater-specific property tax or a general sales tax increase similar to the failed Measure E to support the capital infrastructure shortfall, as well as future budget deficits facing the city.
A general obligation bond program, which is a kind of municipal bond repaid through property taxes, could also be a tool the city uses to close the $6.51 billion backlog of deferred infrastructure projects, according to the budget analyst.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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