April 17 (Bloomberg) -- A rebounding Southern California economy will increase revenue to Los Angeles by 5.1 percent next year, though locked-in employee costs are growing even faster, City Administrative Officer Miguel Santana said.

In an analysis of Mayor Eric Garcetti’s budget proposal, Santana predicted that expenditures would exceed revenues through 2018, requiring the second-largest U.S. city to rely on one-time measures, such as transfers from a parking revenue fund, to balance its budget.

Garcetti, a 43-year-old Democrat who took office last year, proposed a $5.1 billion budget for the year beginning July 1 that maintains a $61.9 million reserve while increasing spending on sidewalk and road repairs. The mayor postponed his plans to phase out the city’s business tax until next year.