CITY OF SAN DIEGO ¡V FINAL ANALYSIS
The City of San Diego is ideally located in Southern California on the Pacific Coast near the U.S.- Mexico border. International trade with Mexico and the Port of San Diego has been major contributing factors to the growth and stability of the economy within this City. In the past, defense contracts made up the majority of the revenues that the city depended on for the budget. However, in recent years the shift has been more toward international trade, high-tech manufacturing and research, professional services and the tourism industry. With this shift in the business focus, San Diego has been one of the few successful cities in California to maintain its revenues, reduce its expenditures and report a somewhat secure financial status. Giving way to part of this success is the fact that San Diego has concentrated on improving its business assistance programs, cutting costs and changing policies to become more business friendly. Due to the success of the business incentive programs, the increase in tourism and the industry shift, San Diego has managed to maintain its revenues and balance its budget. The City follows GASB guidelines and reports its budgetary information accordingly. The mission of San Diego¡¦s city council is to provide cost effective accounting, auditing, and fiscal management services to the Mayor, City Council, and City management; to work in partnership with the Mayor, City Council, and City management to help create positive change and assist them in the performance of their mission; to protect the interests of the general public; and to enhance the reputation of San Diego as a fiscally well-managed City. OVERVIEW With the diversification of business in this City, the citizens have conformed and created an equally diverse populace. The population of this great city plays a large role in the law-making process. Through the Initiative and Referendum process, citizens of San Diego have the right to have any amendment or proposition brought before the city council as long as they have gathered signatures of at least three percent (3%) of the city¡¦s registered voters. This process allows the citizens to bypass both State and Local legislators and have an issue of concern put directly on a ballot for voters to either pass or reject. Many of the changes brought before the council do not make it past the city meetings, however some of the requests do make it on the ballot for public election. Many propositions have been passed due to the public feeling the need to pass what they perceived as a protective measure against ¡§big government¡¨; however, they have created a shortfall for the government by limiting the funds available. Total population of San Diego is 1,276,700, which is a 10% increase from the 1990 census. The population growth has made this city the seventh largest in the country and the second largest within the state of California. Due to this increase in population, the city is increase its tax base and maintain its current budget status. The median age of San Diego¡¦s population is 32, with two-thirds less than age 35 and only 10% over 65. Because of the focus on the telecommunications industry, nearly one-third of San Diego's workforce is over the age of 25 and has at least a bachelor's degree. Due to the close proximity to Mexico, the Hispanic representation in the community is 25% Hispanic helping to spark the international business contacts. The remaining population ratios are: 49% White, 8% African American, and 19% Asian or other. Based on available data, more than 96% of San Diegans are currently employed, with the median family income approaching $40,000. Industries in San Diego have shifted from primarily defense in nature to manufacturing, tourism, international trade and agriculture. The telecommunications boom, software and biotech are among San Diego's fastest growing industries. San Diego has become the nation's center for wireless industries with the city being dubbed "Telecom Valley" and a thriving port due to the available waterways in the San Diego area. The City of San Diego encompasses 342.40 square miles of land giving the city a unique advantage of having room to expand and grow without the image of overcrowding. The majority of the citizens believe the quality of life within the city to be excellent. A total of 27,260 gross acres of land is set aside in Parks and Recreation sites and maintained by the Parks and Recreation Department. A staggering 22% of the land in San Diego is classified as vacant, allowing for additional growth. The remainder of the land is zoned as 27% for residential; 32% for public/semi-public; 9% for commercial/industrial; and 10% for agriculture. With 27% of the available land deeded as residential and an additional 22% vacant, the opportunity for growth in the residential market is open to most anyone who would be interested. Housing in San Diego is handled primarily through two departments, The Affordable Housing Task Force and The Redevelopment Agency. The Affordable Housing Task Force consists of 20 members who represent community organizations and planning boards, housing and environmental supporters, charitable organizations, academics, affordable housing developers, realtors, apartment owners, business and labor. The primary responsibility of the Task Force is identifying areas of change that will result in an increase to the City's affordable housing stock. The Redevelopment Agency of the City of San Diego was created by the City Council in 1958 to alleviate conditions of blight in older, urban areas. This Agency is able to use special legal and financial methods to improve economic and physical conditions in selected areas of the City. The Redevelopment Agency obtained this authority through the state of California's Health and Safety Code (Section 33000-et.seq.), also known as the California Community Redevelopment Law. (City of San Diego, 2003) City documents report that the unemployment rate for 2000 was at 3.0 percent, 2001 was at 3.1 percent and the projected rate for 2002 was 3.5 percent. At the Financial Forecast meeting in March 2003, the unemployment rate as of January 2003 was calculated at 4.4 percent. This is up from the projected numbers of 2002 but well below the national and local levels. San Diego¡¦s governmental structure is similar to most every city in the country with the various departments reporting to supervisors of the numerous programs such as Accounting Services, Auditing and Financial Computer Systems.