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Faulconer calls for hotel tax increase

SAN DIEGO -- Mayor Kevin Faulconer Thursday night proposed increasing San Diego's hotel room tax to expand the convention center, pay for more road repair and fund programs to get the growing number of homeless off the city's streets.

In his "State of the City Address" at the Balboa Theatre, Faulconer made scant mention of the Chargers' announcement that the team will move to Los Angeles.

"At the end of the day, (owner) Dean Spanos was truly never willing to work with us on a stadium solution, and demanded a lot more money than we could ever agree to," Faulconer said.

"San Diego is a great city, and we will move forward."

Read More: Mayor Faulconer: Chargers owner will regret decision

Faulconer, who began his second term last month after being comfortably reelected in June, then moved ahead to tout accomplishments like repairing 640 miles of roadways and fixing a dysfunctional emergency dispatch system.

Watch the entire "State of the City" address

The tax plan was revealed near the end of the 41-minute speech.

Faulconer said he will present the City Council with a proposed ballot measure, to go before voters, that would raise the hotel room tax rate by an unspecified amount. The resulting revenue would pay for an expansion of the convention center that has been on the drawing board for around five years.

Read More: Full video replay: Mayor talks for the first time since Chargers announce relocation

"This is the only legitimate plan that guarantees we can move forward with this critical project," Faulconer said.

Revenue from the tax and economic boost from the bigger facility would also be shoveled into roads and solving the homeless issue, he said.

The hotel room tax was last year's political football.

Initiatives by the Chargers to fund a downtown stadium project and an attorney to pay for several programs both envisioned raising the rate from its current 10.5 percent. Voters rejected both by wide margins.

Going into more detail on homelessness, Faulconer added that a system that allows area social service agencies to work together -- for instance, providing real-time information on available beds -- is coming online this year.

"We must channel the fundamental decency into passionate and collective action," Faulconer said.

"We must lift up the neediest among us and carry their burdens as our own. We must make reducing homelessness our region's number one social service priority."

Faulconer said the problem is partially a result of the housing affordability crisis, in which 70 percent of residents can't afford the cost of a median-priced home.

Faulconer said he will present a package of proposals to the City Council designed to speed up the permitting process for home builders, allow for the construction of more market-rate homes, and provide greater incentives to build residences for low-income buyers.

Faulconer's plans come as the city faces a $47 million budget shortfall for the fiscal year that begins July 1. The gap between projected revenue and planned expenses is a product of jump in the city's contribution to the employee pension system.

Faulconer conceded that this would be a "lean budget year" and called for the City Council to solve the city's new budget woes responsibly.

Faulconer also waded into the national strife that has created divisions along political, racial and class lines.

"We can't let that happen here -- we won't," Faulconer said. "We'll keep working until no one is divided by race, class or ZIP code."

Faulconer said the nearby international border causes some people to see division, but he saw "a cross-border culture, a cross-border economy and a cross-border spirit of cooperation that has my complete and unwavering support."

The families of slain San Diego police Officer Jonathan "J.D." DeGuzman and his partner, Officer Wade Irwin, attended and received standing ovations from the audience. Irwin was seriously injured in the July shooting that took DeGuzman's life.

DeGuzman's children -- Jonathan and Amira -- led the audience in reciting the Pledge of Allegiance.