San Francisco reports $129M surplus in fourth quarter financial results

The City of San Francisco has reported a significant financial surplus of $129 million for the fiscal year ending June 30, 2022, according to the fourth quarter financial report presented at a recent government meeting. This surplus is attributed to a combination of above-budget revenues and expenditure savings, which together contribute to an overall ending fund balance of $142 million.

Key highlights from the report include a one-time budget adjustment of $18.7 million to repay prior year withdrawals from deactivated funds, as directed by the city attorney. The report also noted that the city's operating funds do not include COVID-19 response expenditures, which are accounted for separately.

The financial report indicates that the city experienced $13.4 million in expenditure savings, representing approximately 0.6% of the revised operating budget of $2.245 billion. This figure, while substantial in dollar terms, reflects a minor percentage variance in the overall budget.

The report detailed various revenue sources contributing to the surplus, including $4.9 million from federal provider relief funds aimed at supporting public health systems during the pandemic. However, it also highlighted challenges, such as projected revenue shortfalls in certain areas, including primary care and behavioral health services.

Looking ahead, the city plans to utilize the surplus to address its general fund deficit and enhance its management reserve, which is expected to increase by an additional $10.6 million. The financial outlook remains cautiously optimistic, with city officials emphasizing the importance of careful budgeting and expenditure management in the coming fiscal year.