Encinitas looks to enter the next fiscal year with nearly $5 million in additional revenue thanks to soaring property values, officials reported as they unveiled the city’s proposed budget.
During a special meeting Wednesday, city budget manager Kelly Sanderson and City Manager Jennifer Campbell said Encinitas appears to be in an excellent financial position.
In the coming fiscal year, which begins July 1, Encinitas is forecasted to collect $146.6 million in revenue — an increase of $4.9 million, or 3.4 percent, over the current year’s general fund revenue estimates. And, the city expects to spend $139.9 million — an increase of $3.5 million, or 2.6 percent, over the current year’s general fund forecast.
Revenue is up substantially because of increases in property tax money, Sanderson said. When homes are sold, they’re reassessed for taxing purposes, and Encinitas real estate has been greatly rising in value in recent years.
Much of the city’s general fund revenue — 63 percent — comes from property taxes, Sanderson said.
The newly proposed spending plan for the next fiscal year calls for fully funding the city’s pension, debt and contractual obligations, as well as the city’s 2-percent, budget stabilization fund and 20-percent contingency reserve fund, Campbell and Sanderson both stressed.
New or expanded programs will add about $1.9 million in expenses to the proposed budget, Sanderson said. That figure includes $916,000 for two new traffic enforcement deputies and $186,000 to continue funding for the Buena Creek Navigation Center after its grant funding runs out next year, she said. Buena Creek is a homeless shelter the city tly shares with Vista.
The City Council isn’t scheduled to vote on the proposed spending plan until June 18, but council voiced strong for it during Wednesday’s meeting.
Councilmember Joy Lyndes listed off the items she was pleased to see in the proposed budget, including homeless services, fire station projects, two new traffic enforcement deputies and a new fire marshal.
“I know that these are really top priorities for the community and I’m glad to see that we can focus together on achieving these,” she said.
Mayor Bruce Ehlers said he felt like the city was “in a very good position,” and said it was proof that he was right to oppose a proposed city sales tax increase that failed to win voter approval in November.
“We didn’t really need it,” he said.
Councilmember Jim O’Hara said the proposed budget focused on “what we need to have,” rather than what people might like to have, and said he was glad the budget balanced. He said he wanted the city to keep its spending on consultants “flat” in the coming years and increase its efforts to collect fees, particularly the Transient Occupancy Tax paid by vacation home renters.
Both the mayor and Lyndes noted that there may be more good financial news coming. Encinitas is anticipating receiving $2.6 million in federal reimbursement money — payback for an emergency storm drain repair project — and that figure isn’t included in the current proposed spending plan, they noted.
Other money that’s expected to appear at a later date includes some $14.7 million in development impact fees — that’s because of all the housing projects now being built around town, Ehlers noted. That figure includes some $5.4 million in park impact fees that could help turn what’s now known as the L-7 property into the city’s newest park, Ehlers added.
To view the proposed spending plan, visit: https://encinitas.granicus.com/MetaViewer.php?view_id=7&clip_id=3504&meta_id=187496
