SAN DIEGO, California - "Who doesn't want to live in San Diego? We have everything," said Dan Mendoza, local census office manager for the United States Department of Commerce, Bureau of the Census.

Even though it is known as "America's Finest City" it seems there are a few people who do not want to live here. Enough people, that San Diego slipped in the largest U.S. cities ranking. San Diego fell from eight to nine.

"I don't think it is time to panic in terms of big population shifts," said Beth Jarosz, a demographer with the San Diego Association Governments. "I think we saw a change because of a temporary change in the housing market and we're seeing a return to normal growth now."

According to estimates released Wednesday, July 1, by the Census Bureau, San Diego fell in population and is now the ninth largest city in the U. S. Dallas edged past San Diego slightly, by less than 600 people.

"People move for a wide variety of reasons," said Jarosz. "Population grows for a number of reasons. One, because babies are born...survival, how long your life is...leads to population growth or decline."

So how accurate are the most recent numbers? Because we don't physically count people each year, and only do it every decade, the counts in-between are at best a guess.

"That's one of the challenges. Every demographer does the best estimates they can. Here at Sandag, up at the state of California and at the Census Bureau," she said. "But there is a range of error in which we really can't predict how close exactly the population is. With less than one-tenth of one percent error, do we really know if the city of San Diego is bigger or is Dallas bigger?"

With the 2010 census coming up next year, Mendoza said it is important to get every household to fill out their census forms.

"If we have a complete and accurate count," he said, "we are going to have better data, accurate data that will put us back in the rightful place where we belong."

Not only will next year's census give us a much better accounting of population, but it could bring in additional funds to the city's coffers, money that is divvied out based on the number of people living in each city.

"It is important because that is how we are going to be able to distribute 300 billion dollars in federal funds," said Mendoza.

Not all is lost. Jarosz said between 2007 and 2008, San Diego actually saw an upswing of 1.5 percent growth in population. With any luck and good census numbers next year, San Diego may soon be back where it belongs.

"San Diego is a beautiful city, is the finest city. So we are number one," said Mendoza. We may be number nine in numbers but in our hearts, we're number one."