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National City projects $8.2 million general‑fund shortfall; officials press choices on reserves and pension costs
Summary
City finance staff told a budget workshop the city faces a roughly $8.2 million deficit for the coming fiscal year driven by rising pension UAL payments, higher insurance and transfers out; staff outlined one‑time options and warned reserves are finite.
National City finance staff told the council during a lengthy budget workshop that the city faces a projected general‑fund deficit of about $8.2 million for the next fiscal year, driven primarily by rising pension unfunded actuarial liability payments, increases in insurance premiums and larger transfers to other city funds.
Finance Director Bruce said the city is "looking at a deficit of 8,200,000.0 for next fiscal year." He told the council that several structural items are increasing operating costs: CalPERS unfunded actuarial liability (UAL) payments are rising, the city’s general liability and workers' compensation premiums are growing, and planned transfers out — including a new transfer to a capital‑improvement fund — are larger than in prior years.
The projected shortfall follows a multi‑year revenue pattern that included temporary federal ARPA transfers in 2023–24 that are no longer available. "We have never recovered from the revenue that we were receiving in 2024,"…
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