The Sacramento City Council is in a unique position -- they have a budget surplus on their hands.

It's been long time since the Sacramento City Council has been presented with a budget like this one.

"This is the first time since 2006-07 that we've been able to present a budget to you that didn't require additional cuts in programs, personnel and services," City Manager John Shirey said. 

Shirey believes budget surpluses will be the rule for the City of Sacramento for the next two years, but then another financial challenge will come along.

"Rising pension costs will once again put us into a red position," he said. 

Shirey also notes there are the unknowns, like costs associated with the drought.