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National City staff warn reserves will shrink without new revenue; council weighs taxes, land sales and fees

National City City Council · May 8, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

City leaders presented a midyear budget briefing projecting multi-year deficits and rising pension costs, and councilmembers discussed vacant-property taxes, higher TOT rates, revising franchise fees and city-led land development as options to close gaps while protecting core services.

National City officials told the City Council a combination of slower revenues and rising liabilities has pushed the city toward a multi-year shortfall that will require new revenue or spending changes.

"We basically have $151,000,000 in expenditures and about $142,000,000 in revenues," City Manager Scott Fultz said during the staff briefing, framing the situation as a long-term structural challenge rather than a single-year gap. Finance staff highlighted several cost drivers, including a growing CalPERS unfunded actuarial liability (UAL) and higher insurance premiums.

Bruce, the finance director, told the council that some revenue categories are on track but others pose risk: "So far for this year, we've only collected 58%…

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