City staff tells commission National City faces roughly $16 million budget shortfall; golf course amendment, program changes proposed to raise revenue

City staff told the National City Parks and Recreation Committee that a preliminary budget workshop shows an estimated $16,000,000 deficit and that the city must identify about $3,000,000 in reductions or new revenue to balance the coming fiscal year.

The presentation, delivered by a city staff member (S2), laid out the figures and the tradeoffs under discussion. “We basically are looking at $16,000,000 deficit right now,” the presenter said, adding that the current budget sits near $76,000,000 and that staff had identified about $13,000,000 in unassigned reserves that could be used. “So then we have to find $3,000,000 to balance the budget,” the presenter said.

Why it matters: staff said tapping the identified reserves would exhaust a major portion of the city’s contingency funds; the presenter described a mix of spending reductions and revenue measures under consideration rather than immediate program eliminations.

Rightsizing and service delivery: the staff update included department-level changes intended to reduce costs without cutting core services. The presenter said two supervisor positions were being kept vacant because a dedicated department manager has been hired, and that the nutrition program’s meal cap changes would reduce related costs by about $235,000. The presenter described the change as “rightsizing” the service to prioritize residents after a period when the center served many nonresidents.

Golf course amendment: as one revenue measure, staff summarized a five‑year amendment to the city’s golf course agreement. According to the presentation, the contract raises the operator’s minimum annual payment (presented as an increase from $72,000 to $200,000) and increases revenue sharing. Staff also said the operator must set aside 2% of monthly gross income for capital improvements and that the operator plans roughly $275,000 in improvements on an accelerated (about 18‑month) timetable. “They now have to put 2% of the monthly gross income into these capital improvements,” the presenter said.

Staff emphasized contract safeguards added in the amendment, including indemnity language, a monthly coordination meeting with city staff, and an annual reporting requirement covering gross income, capital work and events.

Next steps: staff framed the figures as preliminary from a workshop and said the numbers will be refined as department directors and the city manager review options. The presenter asked the commission for input on potential cost‑saving ideas and sponsorship opportunities and said staff will bring recommendations back as the budget process advances.

What the committee did: commissioners heard the presentation and asked clarifying questions; there was no formal committee vote recorded on the budget presentation at this meeting. The committee voted on routine items and to place a separate park‑safety discussion on a future agenda.