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2024-05-15 Item 10C FY 2024-25 Budget Intro Agenda ReportAGENDA REPORT City Council MEETING DATE: May 15, 2024 PREPARED BY: Kelly Sanderson, Finance Manager DEPARTMENT DIRECTOR: Teresa S. McBroome DEPARTMENT: Finance CITY MANAGER: Pamela Antil SUBJECT: Introduction of City Manager’s Proposed Fiscal Year 2024-25 Operating and Capital Budgets RECOMMENDATION: Staff recommends that City Council take the following actions: 1.Review proposed FY 2024-25 operating and capital budgets; 2.Receive public input; and 3.Provide direction to staff regarding revisions to the proposed operating and capital budgets for final consideration and adoption on June 12, 2024. ENVIRONMENTAL CONSIDERATIONS: The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” under Section 15378(b)(5) of CEQA Guidelines. The action involves an organizational or administrative activity of government that will not result in the direct or indirect physical change in the environment. This item is not related to the Climate Action Plan. STRATEGIC PLAN: This item falls within the Effective City Services & Reliable Infrastructure focus area of the Strategic Plan by providing services consistently, timely, and predictably and planning and executing infrastructure investments in a fiscally responsible manner. FISCAL CONSIDERATIONS: The proposed FY 2024-25 Operating Budget is balanced, and all policy-directed reserves are fully funded. 2024-05-15 Item #10C Page 1 of 48 The proposed operating budget reflects a total City budget of $135.1 million in revenue that funds $131.8 million in expenses. Proposed FY 2024-25 capital and work project appropriations total $13.4 million. The General Fund operating budget is $107.5 million in revenue that funds $100.0 million in expenditures. Debt service transfers total $5.5 million, and General Fund transfers to capital improvement projects total $3.9 million. The City has an established financial policy regarding maintaining adequate financial reserves. The General Fund contingency reserve is fully funded at 20 percent of operating expenditures ($20.0 million). The budget stabilization reserve is fully funded at two percent of revenue ($2.2 million). With approval of the Proposed Budget, the FY 2024-25 General Fund unassigned ending fund balance is projected to be $0.8 million on June 30, 2025. BACKGROUND: The City of Encinitas fiscal year starts July 1 and ends June 30. Fiscal Year 2025 (FY25) is displayed as FY 2024-25 because it crosses calendar years. Fund Balance If City Council approves the FY 2024-25 operating and capital budget as proposed, the unassigned General Fund balance is projected at $0.8 million on June 30, 2025. The General Fund Projected Budgetary Fund Balance (Attachment 1) includes the audited General Fund balance for the prior fiscal year ending June 30, 2023. Appropriations approved by the City Council during FY 2023-24 are deducted from the unassigned fund balance to project the budgetary fund balance available for appropriation. If City Council approves the third quarter adjustments requested in a separate report on May 15, 2024, the unassigned General Fund balance available for City Council appropriation is projected at $5.2 million on June 30, 2024. Budget forecasts and workshop discussions projected $4.3 million of General Fund unassigned fund balance available for appropriation in next FY 2024-25. The $0.9 million difference is comprised of base budget changes already included in the operating budget, restricted/mandated projects programmed in the capital budget, and restating policy- directed reserves based on the new fiscal year revenue and expense projections. Legal Authorization A public agency may not spend public funds without the legal authorization to do so. A budget appropriates public funds, providing the legal authorization from the governing body to expend these funds. City Council must approve the budget and authorize spending authority (appropriations) prior to the beginning of the new fiscal year on July 1, 2024. The FY 2024-25 operating and capital budget is scheduled to be considered for adoption on June 12, 2024. Appropriations Limit (Gann Limit) The FY 2024-25 Appropriations Limit will be included in the Adopted Budget scheduled for consideration on June 12, 2024. 2024-05-15 Item #10C Page 2 of 48 The City must annually establish its appropriations limit pertaining to the proceeds from taxes in compliance with Article XIIIB of the California Constitution and Cal. Government Code Sec 7910. For FY 2024-25, the City's estimated appropriations of proceeds from taxes, less statutory exclusions, do not appear to exceed the limit and are not expected to present a constraint on current or future deliberations. The California Department of Finance typically publishes the price and population data to calculate the appropriations limit in May. Strategic Planning Framework Each year, the City Council reviews its priorities for the year at its annual Council Retreat. A Council priority is defined as a topic that will receive significant attention and budget consideration during the year. Typically, priorities have a one to three-year time limit, although some may continue beyond that time. On Tuesday, February 6, 2024, the City Council selected the following focus areas to include as the categories for its highest priorities:  Effective City Services & Reliable Infrastructure  Housing & Affordability  Engagement & Education  Ensuring & Preserving Community Character  Environmental Health & Leadership  Mobility & Alternate Modes. Council Goals:  100% affordable housing (choose site, define project, explore funding options)  Prioritize remaining streetscape elements (complete C, Stormwater, B, A South)  Safe, legal railroad crossings and establish citywide quiet zones  Expand habitat stewardship and explore open space preservation (identify resources to fund and better manage our natural resources)  Consider Infrastructure Task Force prioritization and funding recommendations  Build on the bike safety emergency declaration goals and implement Vision Zero Public Involvement On November 16, 2022, City Council directed staff to proceed with the formation of a one-year community task force to evaluate the City’s infrastructure (roads, bridges, facilities, etc.) backlog, prioritization, and anticipated financial needs and opportunities for funding for future infrastructure. The Infrastructure Task Force (ITF) was comprised of seven members of the community, by appointment of the City Council, from a variety of backgrounds, with interest and experience in Capital Infrastructure Projects. This group advised City Council and worked with the City Engineer and City staff to meet the goals and objectives of the Task Force. The work of the ITF has concluded, and the Final Report was presented to City Council on February 28, 2024. At that meeting, City Council approved outreach and possible ballot writing services for a potential one-cent local sales tax measure. No additional revenues are projected in the FY 2024-25 budget, given the unknowns of whether City Council will place the measure on the November 2024 ballot and whether voters will decide to implement the tax. During a special City Council meeting on March 20, 2024, Q3 Consulting presented their Leucadia Area Watershed Drainage Feasibility Study which was completed in December 2022. The study modeled existing flooding in three subareas and provided the recommendations to address a 100- year storm. 2024-05-15 Item #10C Page 3 of 48 Budget Workshops, offering opportunities for the public to provide input on budget priorities, were held at special City Council meetings on March 27 and April 17, 2024. During the workshops, staff presented the five-year financial forecast for the General Fund, and City Council provided direction on the City's Capital Improvement Program including prioritization, timelines and project funding. On May 15, 2024, this report introduces the proposed FY 2024-25 operating budget and CIP for review, public input, and City Council direction. On June 12, 2024, staff will recommend adoption of the proposed operating and CIP budgets via Resolution. ANALYSIS: The FY 2024-25 Budget reflects City Council’s priorities to provide critical services to the community and to fund needed capital improvement projects. The Budget in Brief (Attachment 2) summarizes the proposed operating and capital budgets. The Fund Balance Analysis (Attachment 3) projects beginning fund balance, revenues, operating expenditures, and transfers for operations, debt service, and capital projects. This schedule is used to ensure policy directed reserves can be met; identify timing issues related to grant reimbursements; and determine interfund transfers. The General Fund Summary (Attachment 4) shows prior year actuals, current year budget, and the proposed budget for expenditures by division and source. Interfund operating and debt service transfers are also listed here. Financial Summaries - Revenues (Attachment 5) describes major revenue sources, explains assumptions for estimates, and discusses significant trends. Financial Summaries - Expenses (Attachment 6) provides additional context for categories used in budget monitoring and reporting. The Five-Year Capital Improvement Program FY 2024-25 through FY 2028-29 Plan (Attachment 7) has been updated add Fiscal Year 2028-29 to the plan and to reflect FY 2024-25 funding changes directed at the budget workshop on April 17,2024. CIP Projects by Status (Attachment 8) lists priority projects managed by the Engineering Department and shows the current backlog of partially funded projects. OPERATING BUDGET The operating budget maintains current levels of service while meeting debt, pension, and contractual obligations. The proposed budget also includes funding for the following new programs discussed during the current Fiscal Year 2023-24: 2024-05-15 Item #10C Page 4 of 48  $777K Second HOPE team ($335K start up with $442K ongoing)  $200K Homeless Solutions Coordinator, new 1.0 full-time equivalent (FTE) position added at midyear  $650K Pacific View Arts Center operations, part-time personnel, maintenance, equipment, supplies for new facility and programs  $347K Debt service for 2024 Bond (Land Purchase), debt issue in progress. During budget workshops, City Council discussed options for the projected $4.3 million of General Fund unassigned fund balance available for appropriation. At the second workshop on April 17, 2024, City Council provided direction to program $3,508,500 in the next fiscal year and leave $791,500 as projected unassigned fund balance. Of this $3.5 million total, $0.1 million has been programmed in the operating budget and $3.4 million in the capital budget. Specifically, the proposed operating budget includes the following Council-directed items totaling $98,500:  $50K On-call drainage consulting (Q3) in Engineering capital projects division  $40K Additional funding for visitor center and local business promotion (Chamber of Commerce) in economic development  $8.5K Heritage Tree Lighting (Encinitas Historical Society) in recreation programs (with holiday parade budget). No increases to the number of City employees are proposed. Scheduled advancements and reclassifications needed to support enhanced services and continuity of operations are included in the FY 2024-25 personnel budget. The City’s employee count totaled 248.40 FTE on July 1, 2023. A new Homeless Services Coordinator position was approved midyear on February 28, 2022, bringing the FY 2023-24 total to 249.40 FTE (excluding San Dieguito Water District personnel). Internal service fund budgets include scheduled equipment and vehicle replacements. Fire apparatus replacement expenses totaling $3.5 million are included in the proposed budget, but lease revenue will not be budgeted until financing is requested and approved by Council during the fiscal year. CAPITAL BUDGET The proposed plan through FY 2028-29 contains $57.9 million in capital improvement/work projects over the next five years. Of the five-year total, $13.4 million is programmed for FY 2024- 25. The proposed FY 2024-25 capital budget includes $3.9 million from the General Fund, with all other funds totaling $9.5 million. The capital budget appropriates funds for FY 2024-25 only. Projects shown in future years are programmed into CIP plan and are not funded until each subsequent budget adoption. In a typical budget cycle, departments review existing projects for potential closure to release budget for reappropriation; update amounts to be programmed in future years; and submit new projects for potential community and City Council consideration. 2024-05-15 Item #10C Page 5 of 48 The current operating budget and five-year financial plan in June 2023 programmed $1.7 million from the General Fund for capital projects in FY 2024-25. During budget workshops on March 27 and April 17, 2024, City Council reviewed the CIP plan and past practice of maintaining $2.0 million in unassigned fund balance throughout the fiscal year. For workshop discussions, staff included $0.54 million for the following mandated or restricted items in the capital budget: $0.25M Open Space Plan Update (WC25A), new item with State mandate $0.24M Park Improvement Projects (CP04G), annual transfer of cell tower lease revenue $0.05M ADA Curb Ramp Project (CS16C), Transition Plan compliance. At the second budget workshop on April 17, 2024, City Council directed staff to include $3.41 million in funding for the following projects: $1.80M Extend N101 Drainage to Grandview (CD23A), existing project with new Scope $0.80M Protected Intersection (CS25B), new project - Design & Construction Estimate $0.30M General Mobility (CS18E), annual funding in approved CIP Plan $0.20M Safe Routes to School (CS01E), annual funding in approved CIP Plan $0.15M Native Plant Ordinance Related Activities (WC25B), demonstration garden, education, etc. $0.10M Encinitas Habitat Stewardship Program (WC11A) $0.06M Orpheus/Paul Ecke Central Bike Project, new project (CS25C). The City's Capital Improvement Program is not limited to the projects discussed above. Workshop discussions focus on General Fund appropriations for the new fiscal year because it is the most discretionary source of funding. The capital budget includes multiple restricted funding sources, including grants, gas tax, and impact fees, that provide funding for the CIP. Also, many existing projects are still in progress and retain unspent appropriations from prior years that are still committed to the project until expended or returned to the original funding source. Each year the CIP and Traffic Engineering teams execute a Work Plan based on funded projects. For updates and information about ongoing projects visit the City Projects & Initiatives page. ATTACHMENTS: 1. General Fund Projected Budgetary Fund Balance 2. Budget in Brief 3.All Funds - Fund Balance Analysis (Schedule A #F5) 4.General Fund - Summary of Revenue, Expenditures, and Transfers (Schedule C #F4) 5.Financial Summaries – Revenues 6.Financial Summaries – Expenditures 2024-05-15 Item #10C Page 6 of 48 7. Five-Year Capital Improvement Program – FY25 to FY29 Plan a. By Type b. By Fund 8. CIP Projects by Status 2024-05-15 Item #10C Page 7 of 48 Projected Budgetary Fund Balance Fiscal Year 2023-24 Available Fund Balance General Fund ACFR Actual Beginning Fund Balance, 7/1/2023 34,844,329$ Less Committed Budget Stabilization Reserve (2% Revenue)2,007,833 Committed Contingency Reserve (20% Operating Expenditures)18,033,753 Does not include $6.3M land purchase approved 9/20/23 Restricted 199,164 Nonspendable 310,620 Total Unassigned Fund Balance, 7/1/2023 14,292,959 City Council Action Date Title Resolution General Fund 2023-06-21 FY24 Operating and Capital Budget Adoption 2023-047 (2,372,120) 2023-06-28 CS23A Construction and Inspection Contract Award 2023-085 2023-08-09 Replace VM318 Combination Sewer/Storm Drain Cleaning Truck 2023-091 2023-08-16 WF24A 2022 State Homeland Security Program Grant 2023-097 2023-08-23 CS19E State DOT Funding for Santa Fe Drive Improvements 2023-101 2023-09-13 CD23A HUD Grant Funding N 101 Drainage 2023-106 2023-09-20 Purchase 1.43 acres Hwy 101 / La Costa Ave ($6.3M Reserves)2023-102 - 2023-09-27 Continuing Appropriations from FY23 2023-111 (376,753) CX23A Lake Drive Emergency Repairs and NOC 2023-089 (306,000) 2023-10-25 Firefighter SCBA and Rapid Intervention Team Paks 2023-123 (513,692) 2023-12-13 CD05E Moonlight Beach Barrels and Storm Water Repairs 2023-136 (300,000) Housing Choice Voucher CY23 Set-Aside Funding: Lower Than Avg Leasing 2023-137 2023-12-20 CF22A City Hall Phase 2 NOC and EV Rebate 2023-143 42,411 2024-01-24 Cannabis HdL Contract Amendment 2 2024-011 (7,470) CF20D Pacific View Building Occupancy 2024-017 (161,682) Discretionary Payment - Unfunded Pension Liability 2024-010 (500,000) Replenish Fund 403 Facilities Capital Maintenance 2024-010 (1,000,000) Replenish Fund 601 Risk Mgmt (Self Insurance)2024-010 (1,500,000) Replenish Fund 622 Vehicle Replacement 2024-010 (1,000,000) Replenish Fund 623 Machinery & Equip Replacement 2024-010 (500,000) Replenish Fund 624 Fire Apparatus Replacement 2024-010 (2,000,000) WC23D HAP Implementation - Buena Creek Navigation Center Ops FY24 2024-007 (535,511) 2024-02-21 Connected Coastlines State Coastal Conservancy Grant 2024-015 2024-02-28 Midyear Budget Amendments - Adjust As Adopted 2024-022 56,135 Midyear Budget Amendments - As Proposed 2024-022 (230,850) WC23B Traffic Study Infrastructure Improvements 2024-021 (27,965) 2024-03-20 CS23E Wales Drive/Crest Drive Emergency Access Gate Construction 2024-026 (23,051) 2024-03-27 CF20D Pacific View Building Security 2024-029 EPFA 2024 Lease Revenue Bonds - 1.43 acres Hwy 101 / La Costa Ave 2024-031 350,000 2024-04-24 CF23B Emergency Repairs to Fire Station 6 2024-045 CF23D Emergency Repairs to Fire Station 4 2024-044 CF24A Emergency: Swami's Beach Restrooms Sewer Line Failure 2024-043 2024-05-15 (Proposed) CF20D Pacific View Improvements SDG&E Issues 2024-049 (250,000) (Proposed) CS23D Leu Streetscape Seg C - Mit Fees 2024-051 (Proposed) CX24C Emergency Lake Dr Canyon Repair 2024-058 (810,000) (Proposed) Q3 Budget Amendments 2024-053 3,026,498 2024-05-22 (TBD) CX24A Emergency Bicycle Safety / CS24E Saxony & Quail Gardens Mobility Enhanceme2024-032 2024-06-12 (TBD) CF23C Emergency Repairs to Fire Station 5 2024-TBD (TBD) CX24B Emergency Sediment Cleanup Manch Culvert to SEL 2024-TBD (185,000) Total Fiscal Impact (9,125,050) Projected Unassigned Fund Balance, 6/30/2024 5,167,909 Fiscal Year 2024-25 2024-06-12 (TBD) FY25 Operating and Capital Budget Adoption (2,267,084) (TBD) Release Committed FY24 Reserves 20,041,586 (TBD) Restate Committed FY25 Reserves - based on proposed operating budget (22,150,911) Total Fiscal Impact (4,376,409) Projected Unassigned Fund Balance, 6/30/2025 791,500 ATTACHMENT 1 2024-05-15 Item #10C Page 8 of 48 Interactive Story - Click on graphics to explore the data $135,149,153.00 Revenues in 2025 General Fund Other ESD Operatio... Internal Ser... CSD Operatio... Infrastructu... $131,847,443.00 Expenses in 2025 General Fund Other Lighting and... CSD Operatio... Debt Service... Internal Ser... The balanced budget for Fiscal Year 2024-25 supports Council's mission to lead the preservation and evolution of our City and provide innovative services that enhance the quality of life for residents, visitors, businesses, and our communities. The proposed FY 2024-25 Operating Budget is balanced, and all policy-directed reserves are fully funded. The proposed Operating Budget reflects a total City budget of $135.1 million in revenue that funds $131.8 million in expenses. The General Fund budget is $107.5 million in revenue that funds $100.0 million in expenditures. Proposed FY 2024-25 capital and work project appropriations total $13.4 million. The City has an established financial policy regarding maintaining adequate financial reserves. The General Fund contingency reserve is fully funded at 20 percent of operating expenditures ($20.0 million). The budget stabilization reserve is fully funded at two percent of revenue ($2.2 million). With approval of the Proposed Budget, the FY 2024-25 General Fund unassigned ending fund balance is projected to be $0.8 million on June 30, 2025. Budget Priorities The FY 2024-25 Budget reflects City Council’s priorities to provide critical services to the community and to fund needed capital improvement projects. Budget in Brief Introduction to Fiscal Year 2024-25 Operating and Capital Budgets Estimated Revenues by Fund All Funds - excludes transfers Proposed Expenditures by Fund All Funds - excludes transfers ATTACHMENT 2 2024-05-15 Item #10C Page 9 of 48 Operating The operating budget maintains current levels of service while meeting debt, pension, and contractual obligations. It also includes funding for the following new programs discussed during the current Fiscal Year 2023-24: $777K Second HOPE team ($335K start up with $442K ongoing) $200K Homeless Solutions Coordinator, new 1.0 full-time equivalent (FTE) position added at midyear $650K Pacific View Arts Center operations, part-time personnel, maintenance, equipment, supplies for new facility and programs $347K Debt service for 2024 Bond (Land Purchase), debt issue in progress. During budget workshops, City Council discussed options for the projected $4.3 million of General Fund unassigned fund balance available for appropriation. At the second budget workshop on April 17, 2024, Council provided direction on programming $3,508,500 in the next fiscal year, leaving $791,500 in unassigned fund balance. Of this $3.5 million total, $0.1 million has been programmed in the operating budget and $3.4 million in the capital budget. Specifically, the proposed operating budget includes the following Council- directed items totaling $98,500: $50K On-call drainage consulting (Q3) in Engineering capital projects division $40K Additional funding for visitor center and local business promotion (Chamber of Commerce) in economic development $8.5K Heritage Tree Lighting (Encinitas Historical Society) in recreation programs, holiday parade. Capital and Work Projects Prior to budget workshops, staff included $0.54 million for the following mandated or restricted items in the capital budget: $0.25M Open Space Plan Update (WC25A), new item with State mandate $0.24M Park Improvement Projects (CP04G), annual transfer of cell tower lease revenue $0.05M ADA Curb Ramp Project (CS16C), Transition Plan compliance. At the second budget workshop on April 17, 2024, Council programmed $3.41 million in funding for the following projects: $1.80M Extend N101 Drainage to Grandview (CD23A), existing project with new Scope $0.80M Protected Intersection (CS25B), new project - Design & Construction Estimate $0.30M General Mobility (CS18E), annual funding in approved CIP Plan $0.20M Safe Routes to School (CS01E), annual funding in approved CIP Plan $0.15M Native Plant Ordinance Related Activities (WC25B), demonstration garden, education, etc. $0.10M Encinitas Habitat Stewardship Program (WC11A) $0.06M Orpheus/Paul Ecke Central Bike Project, new project (CS25C). While workshop discussions focus on General Fund appropriations for the new fiscal year, it is important to note that the City's Capital Improvement Program budget is not limited to the above projects. The CIP budget includes multiple restricted funding sources, like gas tax and impact fees, that contribute to capital and multi- year work projects. Also, the FY 2024-25 budget only shows new amounts to be added to projects. Many projects have unspent available budget carried forward from prior years, representing funding that is still committed to the project. 2024-05-15 Item #10C Page 10 of 48 Community Profile About Encinitas The City of Encinitas was incorporated in October 1986 as a general law city, bringing together the communities of New and Old Encinitas, Cardiff-by- the-Sea, Leucadia, and Olivenhain. Encinitas is located in northern San Diego County approximately 25 miles north of downtown San Diego on the Southern California coast. The City with an estimated population of 62,000 covers approximately 21 square miles and is predominately residential with two major commercial corridors. Demographics From January 1, 2023 to January 1, 2024 the population decreased 0.37 percent in Encinitas and increased 0.07 percent in San Diego County. The population has remained relatively stable over the last ten years, with a dip occurring in 2009 during the Great Recession. Source: State Department of Finance Population Estimates (E-1) California's per capita personal income increased 3.62 percent over the prior FY 2022-23. Source: State Department of Finance The median household income in Encinitas has grown steady over the last 20 years. The 2020 dip was due to the COVID pandemic as many businesses were temporarily closed. Source: 2020 Census.gov via Datacommons.org The median age has increased slightly over the last ten years. Source: 2020 Census.gov via Datacommons.org 61,085 Demographics in 2024 0 20K 40K 60K 80K 1996 2010 2024 120,488 Demographics in 2021 0 50K 100K 150K 2013 2017 2021 43 Demographics in 2021 0 10 20 30 40 50 2013 2017 2021 City Population Median Income Median Age 2024-05-15 Item #10C Page 11 of 48 Elected Officials The City is governed by a City Council consisting of a mayor and four council members under the Council- Manager form of government. The City Council acts as the Board of Directors for the San Dieguito Water District, the Encinitas Housing Authority, and the Encinitas Public Financing Authority. Operating Budget 2024-25 Strategic Planning Framework An effective budget process establishes broad goals to guide government decision making. Each year, the City Council reviews its priorities for the year at its annual Council Retreat. A Council priority is defined as a topic that will receive significant attention and budget consideration during the year. Typically, priorities have a one to three-year time limit, although some may continue beyond that time. On Tuesday, February 6, 2024, the City Council selected the following focus areas to include as the categories for its highest priorities: Effective City Services & Reliable Infrastructure Housing & Affordability Engagement & Education Ensuring & Preserving Community Character Environmental Health & Leadership Mobility & Alternate Modes Council Goals 100% affordable housing (choose site, define project, explore funding options) Prioritize remaining streetscape elements (complete C, Stormwater, B, A South) 2024-05-15 Item #10C Page 12 of 48 Safe, legal railroad crossings and establish citywide quiet zones Expand habitat stewardship and explore open space preservation (identify resources to fund and better manage our natural resources) Consider Infrastructure Task Force prioritization and funding recommendations Build on the bike safety emergency declaration goals and implement Vision Zero Public Involvement The budget process also should incorporate a long-term perspective and promote effective communication with stakeholders. On November 16, 2022, City Council directed staff to proceed with the formation of a one-year community task force to evaluate the City’s infrastructure (roads, bridges, facilities, etc.) backlog, prioritization, and anticipated financial needs and opportunities for funding for future infrastructure. The Infrastructure Task Force (ITF) was comprised of seven members of the community, by appointment of the City Council, from a variety of backgrounds, with interest and expertise in Capital Infrastructure Projects. This group advised City Council and worked with the City Engineer and City staff to meet the goals and objectives of the Task Force. The work of the ITF has concluded, and the Final Report was presented to City Council on February 28, 2024. At that meeting, Council approved outreach and ballot writing services for a potential one-cent local sales tax measure. No additional revenues are projected in the FY 2024-25 budget, given the unknowns of whether City Council will place the measure on the November 2024 ballot and whether voters will decide to implement the tax. During a special City Council meeting on March 20, 2024, Q3 Consulting presented their Leucadia Area Watershed Drainage Feasibility Study which was completed in December 2022. The study modeled existing flooding in three subareas and provided the recommendations to address a 100-year storm. Budget Workshops, offering opportunities for the public to provide input on budget priorities, were held at a special City Council meetings on March 27 and April 17, 2024. During the workshops, staff presented the five- year financial forecast for the General Fund, and Council provided direction on the City's Capital Improvement Program including prioritization, timelines and project funding. On May 15, 2024, staff will introduce the proposed FY 2024-25 operating budget and CIP for review, public input, and Council direction. On June 12, 2024, staff will recommend adoption of the proposed operating and CIP budgets via Resolution. 2024-05-15 Item #10C Page 13 of 48 All Funds The following interactive graph summarizes revenue and expense trends by showing actuals for two prior fiscal years, the current year original budget, and the proposed budget. Interfund transfers are not included. Use the filter to drill into different funds. Click on the column to see revenues by source or expenditures by type. Use the Back or Reset buttons to return to the original graph. Clicking pie graphs opens a new browser tab that can be closed after exploring the data. Updated On 9 May, 2024 Reset Broken down by Types History Funds  Visualization FY22 Actual FY23 Actual FY24 Original Budget FY24 Revised Budget FY25 Proposed Budget Fiscal Year 0.0 50.0M 100.0M DollarsBack Revenues Expenses Sort By Chart of Accounts   Category 2025 Taxes $97,638,000.00 Charges for services $20,866,576.00 Intergovernmental $9,982,544.00 Other revenue $4,248,615.00 Use of money and property $1,677,318.00 Other $736,100.00 Category 2025 Fire and Marine Safety $24,056,849.00 Law Enforcement (contract)$19,523,389.00 Public Works $16,962,563.00 Parks Recreation & Cultural Arts $12,182,343.00 Development Services $11,459,351.00 Other $47,662,948.00 Major Revenues by Source All Funds - excludes transfers Major Expenditures by Department All Funds - excludes transfers 2024-05-15 Item #10C Page 14 of 48 Services Provided by Each Department Administrative Services - Manages safety programs, insurance, claims, attorney contracts and ongoing litigation. Coordinates budget for City Attorney. City Attorney - Represents the City of Encinitas and the San Dieguito Water District. The City Attorney advises the City Council, City Departments and City Commissions regarding legal matters of concern to the City and its operations. City Council - The governing body of the City. The role of the Mayor and City Council is to determine policy for the City. City Manager's Office - Responsible for the administration and oversight of the City organization, including the hiring of the City's workforce, supervising City departments, and ensuring that the City Council's priorities are met. City Clerk - Responsible for coordinating the legislative process including agenda management, administering city elections, and records management. Development Services - Contributes to City Council's vision for community planning to maintain safe and livable communities through well-maintained infrastructure and facilities, strong public safety, and significant environmental standards while achieving diverse and affordable housing for present and future generations. Engineering - Responsible for the comprehensive oversight of major City infrastructure projects, transportation network and other initiatives. Finance - Manages the City's fiscal resources to protect and enhance the City's financial position. Fire & Marine Safety - Provides a wide array of public safety services including fire protection, emergency response, medical aid, fire prevention, disaster preparedness, search and rescue, beach lifeguard services and community education programs. Human Resources - Responsible for recruitment and onboarding new employees, benefits administration, employee development, labor relations, organization and workforce planning, and policy development. Information Technology - Provides innovative and secure technical solutions and support that promote efficient delivery of public service. Law Enforcement - Services are provided through the City's contract with the San Diego County Sheriff. The Station Captain serves as th City's Chief of Police. Non-Departmental and Debt Service - Created to appropriate funds for those activities beneficial on a citywide basis and not directly chargeable to any one department or division. Parks, Recreation, and Cultural Arts - Responsible for recreation and arts programs, maintenance of recreational areas, public art streetscapes, animal services, Commission support, and oversight of the Encinitas Ranch Golf Authority. 2024-05-15 Item #10C Page 15 of 48 Public Works - Provides street, public right of way, and above ground stormwater system maintenance and manages the City's facilities, vehicle fleet, and heavy equipment. Utilities - The Encinitas Wastewater Collection Division provides sewer maintenance and operation services and is incuded in the City budget. The San Dieguito Water District provides potable (drinking) water services and is budgeted separately. General Fund The General Fund is the City’s primary operating fund. It accounts for basic services such as public safety, public works, planning and development, park and street maintenance, and code enforcement, along with the administrative services required to support these programs. The FY 2024-25 Proposed Budget for the General Fund includes: Estimated revenues of $107.5 million Proposed operating expenditures of $100.0 million Proposed capital expenditures of $3.9 million (transfers out to CIP budget) Debt service payments of $5.5 million, including new debt issuance for land purchase (transfers out to debt funds) Policy-directed budget stabilization reserves (two percent of revenue, $2.2 million) and contingency reserves (20 percent of expenditures, $20.0 million), and Projected General Fund unassigned ending fund balance of $0.8 million for June 30, 2025. Updated On 9 May, 2024 Reset Broken down by Types General Fund History  Visualization FY22 Actual FY23 Actual FY24 Original Budget FY24 Revised Budget FY25 Proposed Budget Fiscal Year 0.0 100.0M 50.0M DollarsBack Revenues Expenses Sort By Chart of Accounts   2024-05-15 Item #10C Page 16 of 48 Where does the money come from?How is the money is spent? General Fund revenue primarily composed of property tax, sales tax, and transient occupancy tax. Nearly 87 percent of General Fund revenue is generated from taxes. Municipalities group similar expenses by type or category to facilitate budget presentation, monitoring, and reporting. The top three categories represent over 99 percent of the total General Fund expenditures. Category 2025 Taxes $93,152,500.00 Charges for services $10,828,594.00 Use of money and property $1,088,080.00 Intergovernmental $945,530.00 Other revenue $764,845.00 Other $736,100.00 Category 2025 Personnel $52,646,413.00 Contracts and services $44,862,975.00 Materials and supplies $2,205,747.00 Debt / finance $195,857.00 Capital outlay $92,000.00 $107,515,649.00 Revenues in 2025 Non-Departme... Other Fire and Mar... Engineering Parks Recrea... Development ... $100,002,992.00 Expenses in 2025 Fire and Mar... Law Enforcem... Parks Recrea... Other Public Works Development ... Staffing No increases to the number of City employees are proposed. Scheduled advancements and reclassifications needed to support enhanced services and continuity of operations are included in the operating budget. The number of employees is measured in full-time equivalent (FTE) units. One FTE works 2,080 hours per year. FTE counts exclude contract staff. The City’s employee count totaled 248.40 FTE on July 1, 2023. A new Homeless Services Coordinator position was approved midyear on February 28, 2024, bringing the FY 2023- 24 total to 249.40 FTE (excluding San Dieguito Water District personnel). Major Revenues by Source General Fund - excludes transfers Expenditures by Type General Fund - excludes transfers Revenue by Department General Fund - excludes transfers Expenditures by Department General Fund - excludes transfers 2024-05-15 Item #10C Page 17 of 48 Capital Outlay - Vehicle Replacement Program No increases to the number of vehicles in the City fleet are proposed. Scheduled replacements are included in the operating budget. Separate internal service funds purchase and own all City vehicles. Holding periods are set by category of vehicle, typically three to five years. Replacements require disposal and do not increase the size of the fleet. Increases in vehicle count are approved by Council. Budgets are an estimate of the amount expected to replace vehicles. By approving the list, City Council authorizes the replacement of those vehicles in the next year. Actual purchase of the vehicles is subject to the assessment of the Fleet Maintenance Division and the Public Works Director's approval. Vehicle Replacement Fund (622) Vehicle Make Model Department FY 2024-25 170 Ford F-350 PW-Fleet 200,000 250 Ford Ranger 4X4 Development Services 70,000 277 Ford Escape Hybrid Pool 70,000 319 Ford Escape SE 4 WD PRCA 70,000 320 Ford F-150 PRCA 70,000 Outfitting & Contingency 75,000 Total Capital Outlay $ 555,000 Equipment Replacement Fund (623) Vehicle Make Model Department FY 2024-25 170 INT 2500 gallon water truck PW 300,000 321 Ford F-350 PW 200,000 333 Curb Machine MIL MC650 PW 12,000 334 Solar Tech Silent Messenger ll LED PW 20,000 393 Polaris ATV Fire & Marine Safety 45,000 395 Yamaha Jet Ski Fire & Marine Safety 22,000 396 Yamaha Jet Ski Fire & Marine Safety 22,000 232 Case 521D Wheeled Loader PW 300,000 206 Miller Trailer Tilt PW 15,000 Total Capital Outlay $ 936,000 Fire Apparatus Replacement Fund (624) Vehicle Make Model Department FY 2024-25 170 INT Master Body Brush Truck Fire 800,000 278 Pierce Tiller Truck Fire 2,700,000 Total Capital Outlay $ 3,500,000 2024-05-15 Item #10C Page 18 of 48 Capital Improvement Program (CIP) $13,434,120.00 Type in 2025 Streets and Rail Cor... Wastewater Other Parks and Beaches Mobility Improvement... Drainage Encinitas monitors and improves City infrastructure including roads, sidewalks, drainage systems, trails, and parks. City Projects are prioritized in strategies laid out by Council's Strategic Planning Framework. While most capital projects are managed by the Engineering Department, the CIP plan also includes facilities, parks and beach projects, and multi-year studies (work projects) managed by other departments. The proposed plan through FY 2028-29 contains $57.9 million in capital improvement/work projects over the next five years. Of the five-year total, $13.4 million is programmed for FY 2024-25. The proposed FY 2024-25 capital budget includes $3.9 million from the General Fund, with all other funds totaling $9.5 million. Funding for projects is provided by existing fund balance, future projected cash flows, and loan proceeds. Projects shown in future years are programmed into the CIP plan and are not funded until each subsequent budget adoption. Each year the CIP and Traffic Engineering teams execute a Work Plan based on funded projects. For updates and information about ongoing projects visit the City Projects & Initiatives page. A list of current CIP Projects by Status is available on the City's website. CIP by Type Totals show funding appropriated in FY 2024-25 only. Chart does not reflect budget carryforward for projects still in progress. Data Updated May 09, 2024, 5:12 PM 2024-05-15 Item #10C Page 19 of 48 Category 2025 101 - General Fund $3,948,000.00 522 - Encinitas Sanitary Div $2,931,322.00 211 - TransNet $2,369,600.00 201 - State Gasoline Taxes $2,072,448.00 512 - Cardiff Sanitary Div $1,279,578.00 Other $833,172.00 Category 2025 Annual Street Overlay $2,369,600.00 N101 Drainage Improvements *…$1,800,000.00 Annual Street Overlay - RMRA …$1,538,591.00 Encina Plant Improvements $1,264,922.00 Collection System Rehabilitation $1,080,000.00 Other $5,381,007.00 Powered by OpenGov CIP by Funding Source The General Fund transferred $3.9 million to fund capital projects in FY 2024-… CIP by Project Projects funded in prior years do not appear below. 2024-05-15 Item #10C Page 20 of 48 All FundsFund Balance AnalysisSchedule A #F5, updated 5/9/2024Fiscal Year 2024-25In $ thousands + = + - + + + =Budgetary Restate Projected Estimated Proposed Net Net Net ProjectedFund Balance Reserves Fund Balance Operating Operating Operating Capital 1x Adj or Fund Balance6/30/2024 7/1/2024 Revenue Expense Transfers Transfers (Capital Exp) 6/30/2025 $ Change% ChangeGovernmental Funds - Fund BalanceGENERAL 101 - GENERAL FUND Unassigned 5,168 (2,109) 3,059 107,516 100,003 (7,411) (2,369) - 791 Budget Stabilization Reserve (2% revenue)2,008 142 2,150 - 2,150 Contingency Reserve (20% op expenditures)18,034 1,967 20,001 - 20,001 Restricted199 199 - 199 Nonspendable311 311 - 311 TOTAL GENERAL FUND25,719 - 25,719 107,516 100,003 (7,411) (2,369) - 23,452 (2,267) -9%DSPECIAL REVENUEINFRASTRUCTURE201 - STATE GASOLINE TAXES44 44 3,213 - (1,141) (2,072) 44 - 0%203 - STATE CAPITAL GRANTS(10,399) (10,399) - - - - (10,399) - 0%211 - TRANSNET PROGRAM(1,403) (1,403) 2,377 - - (2,370) (1,396) 7 -1%212 - COASTAL ZONE MANAGEMENT1,591 1,591 1,285 490 - (298) 2,087 497 24%I223 - FEDERAL CAPITAL GRANT(3,680) (3,680) - - - -(3,680) - 0%TOTAL INFRASTRUCTURE(13,848) - (13,848) 6,875 490 (1,141) (4,740) - (13,344) GRANTS & HOUSING202 - STATE LAW ENF GRANT(0) (0) 100 100 - - (0) - 0%213 - GOVERNMENT EDUCATION ACCESS376 376 298 244 - - 429 53 12%214 - SOLID WASTE RECYCLING & HHW994 994 1,133 1,116 - - 1,011 16 2%221 - SENIOR NUTRITION GRANT(135) (135) - - - - (135) - 0%222 - CDBG GRANT(458) (458) 298 129 (169) - (458) - 0%228 - FEDERAL LAW ENF GRANT- - - - - -- -#DIV/0!229 - RESTRICTED DONATIONS & CONTRIB84 84 50 35 (10) - 89 5 6%230 - CSA-17 BENEFIT FEES359 359 265 333 - - 291 (68) -23%DTOTAL GRANTS & HOUSING1,220 - 1,220 2,143 1,957 (179) - - 1,227 DEVELOPMENT IMPACT231 - PARK DEVELOPMENT FEES901 901 254 - - - 1,154 254 22%I232 - PARKLAND ACQUISITION FEES1,282 1,282 436 - - - 1,718 436 25%I233 - TRAFFIC MITIGATION FEES(416) (416) 119 - - - (297) 119 -40%D234 - REGIONAL TRAFFIC MITIG FEE(204) (204) 165 - - - (39) 165 -426%D235 - OPEN SPACE ACQUISITION FEES254 254 31 - - - 286 31 11%236 - RECREATIONAL TRAILS FEES23 23 11 - - - 34 11 32%237 - COMMUNITY FACILITIES FEES- - 34 - (34) - - - #DIV/0!238 - FIRE MITIGATION FEES- - 72 - (72) - - - #DIV/0!239 - FLOOD CONTROL MITIGATION FEES24 24 81 - -- 105 81 77%251 - IN LIEU FEES CURB GUTTER SIDEW21 21 0 - -- 21 0 0%252 - IN LIEU FEES UNDERGROUND UTIL1,049 1,049 1 - -- 1,050 1 0%253 - IN LIEU FEES AFFORDABLE HOUSIN234 234 70 - -- 304 70 23%TOTAL DEVELOPMENT IMPACT3,169 - 3,169 1,274 - (106) - - 4,336 ATTACHMENT 32024-05-15Item #10CPage 21 of 48 All FundsFund Balance AnalysisSchedule A #F5, updated 5/9/2024Fiscal Year 2024-25In $ thousands + = + - + + + =Budgetary Restate Projected Estimated Proposed Net Net Net ProjectedFund Balance Reserves Fund Balance Operating Operating Operating Capital 1x Adj or Fund Balance6/30/2024 7/1/2024 Revenue Expense Transfers Transfers (Capital Exp) 6/30/2025 $ Change% ChangeLIGHTING & LANDSCAPING291 - VILLANITAS ROAD MID 222 222 24 33 - - 212 (9) -4%292 - CERRO STREET MID 626 626 83 42 - - 667 41 6%293 - VILLAGE PARK MID 15 15 34 74 32 - 7 (9) -125%D294 - WIRO PARK MID 13 13 11 32 19 - 12 (1) -7%295 - ENCINITAS LLD 1,626 1,626 1,655 1,892 - (40) 1,349 (277) -21%D297 - ENC RANCH LLD 1,633 1,633 635 701 - (5) 1,562 (71) -5%TOTAL LIGHTING & LANDSCAPING 4,135 - 4,135 2,441 2,774 51 (45) - 3,809 DEBT SERVICE 301 - DEBT SERVICE FUND 0 0 - 1,717 1,717 - 0 - 0%302 - ENC PUBLIC FINANCE AUTHORITY 271 271 - 3,806 3,806 - 271 - 0%TOTAL DEBT SERVICE 271 - 271 - 5,523 5,523 - - 271 CAPITAL PROJECTS401 - CAPITAL IMPROVEMENTS-MULTIYEAR (0) (0) - - - - (0) - 0%402 - CAPITAL IMPROVEMENTS-ANNUAL(0) (0) - - - - (0) - 0%403 - FACILITIES CAPITAL MAINTENANCE1,404 1,404 - - (554) - (425) 425 (979) -230%DTOTAL CAPITAL PROJECTS1,404 - 1,404 - - (554) - (425) 425 TOTAL GOVERNMENTAL FUNDS22,070 - 22,070 120,248 110,747 (3,816) (7,154) (425) 20,176 Notes IIncrease is due to planned increase in fund balance to save for future projects.DDecrease is due to a planned use of fund balance for projects related to the nature of this fund.Definition of Fund BalanceAll governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included. The difference between current assets and current liabilities is fund balance.2024-05-15Item #10CPage 22 of 48 All FundsFund Balance AnalysisSchedule A #F5, updated 5/9/2024Fiscal Year 2024-25In $ thousands + = + - + + + =Budgetary Restate Projected Estimated Proposed Net Net Net ProjectedFund Balance Reserves Fund Balance Operating Operating Operating Capital 1x Adj or Fund Balance6/30/2024 7/1/2024 Revenue Expense Transfers Transfers (Capital Exp) 6/30/2025 $ Change% ChangeProprietary Funds - Net AssetsENTERPRISE511 - CSD OPERATIONS (2,034) (2,034) 5,905 4,853 - (1,280) (2,261) (227) 10%P512 - CSD CAPITAL REPLACEMENT (3,571) (3,571) - - - 1,280 (1,625) (3,916) (345) 9%513 - CSD CAPITAL EXPANSION 1,785 1,785 50 - - - 1,835 50 3%TOTAL CARDIFF SANITARY DIVISION (3,820) - (3,820) 5,955 4,853 - - (1,625) (4,342) 521 - ESD OPERATIONS (2,319) (2,319) 3,056 2,078 - (2,931) (4,272) (1,953) 46%P522 - ESD CAPITAL REPLACEMENT (2,162) (2,162) - - - 2,931 (2,600) (1,831) 331 -18%523 - ESD CAPITAL EXPANSION 3,192 3,192 25 - - - 3,217 25 1%TOTAL ENCINITAS SANITARY DIVISION (1,289) - (1,289) 3,081 2,078 - - (2,600) (2,886) 551 - SECTION 8 HOUSING ADMIN 117 117 413 94 (198) - 237 121 51%F552 - SECTION 8 HOUSING HAP 1 1 2,082 - (2,082) - 1 - 0%561 - PAC PINES AFFORDABLE HOUSING 1,202 1,202 253 280 29 (65) 1,138 (64) -6%TOTAL AFFORDABLE HOUSING1,320 - 1,320 2,747 374 (2,251) (65) - 1,377 INTERNAL SERVICE 601 - SELF INSURANCE2,188 2,188 1,414 5,975 3,532 - 1,159 (1,029) -89%D611 - WASTEWATER SUPPORT(279) (279) 1,019 1,285 (685) - (1,230) (952) 77%P621 - FLEET MAINTENANCE(185) (185) 684 786 - - (287) (102) 36%P622 - VEHICLE REPLACEMENT993 993 - 555 86 - 524 (469) -89%D623 - MACH EQUIPMENT REPLACEMENT639 639 - 936 599 - 302 (337) -112%D624 - FIRE APPARATUS REPLACEMENT568 568 - 3,945 (500) - (3,877) (4,445) 115%D631 - TECHNOLOGY OPERATIONS(20) (20) - - - - (20) - 0%632 - TECHNOLOGY REPLACEMENT(0) (0) - 314 314 - (0) - 0%TOTAL INTERNAL SERVICE3,905 - 3,905 3,117 13,796 3,345 - - (3,428) TOTAL PROPRIETARY FUNDS115 - 115 14,901 21,100 1,094 (65) (4,225) (9,280) TOTAL ALL FUNDS22,186 - 22,186 135,149 131,847 (2,722) (7,219) (4,650) 10,897 Notes IIncrease is due to planned increase in fund balance to save for future projects.DDecrease is due to a planned use of fund balance for projects related to the nature of this fund.HFederal Housing awards are announced annually in May. Staff projects expenditure increases, but assumes existing funding levels. Budget is adjusted when Federal amount is known.PFund deficit is due to Pension and Retiree Health Care liabilities from GASB 68 and 78. The City continues to use this fund as in prior years, and removes these liabilities to determine financial health and develop rates.Definition of Net AssetsThese funds are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.2024-05-15Item #10CPage 23 of 48 General Fund Summary of Revenue, Expenditures, and Transfers Budget Introduction Last Year Current Year Next Year Original Projected Proposed Increase Actual Budget Budget Budget (Decrease) FY 2022-23 FY 2023-24 FY 2023-24 FY 2024-25 $ Change % Change REVENUES BY SOURCE Taxes 1 Property 60,802,331 63,082,500 63,082,500 67,050,000 3,967,500 6.3% 2 Real property transfer 676,729 650,000 650,000 650,000 - 0.0% 3 Sales 17,138,284 17,490,000 16,490,000 17,298,000 808,000 4.9% 4 Transient occupancy 4,779,881 4,300,000 4,750,000 5,100,000 350,000 7.4% 5 Franchise fees 2,581,663 2,335,500 2,335,500 2,304,500 (31,000) -1.3% 6 Excise - 250,000 250,000 750,000 500,000 200.0% 7 Penalties interest - delinquent taxes 56,857 - - - - #DIV/0! 8 Total taxes 86,035,746 88,108,000 87,558,000 93,152,500 5,594,500 6.4% Other 9 Licenses and permits 379,267 291,000 291,000 371,100 80,100 27.5% 10 Intergovernmental 1,026,194 808,515 808,515 945,530 137,015 16.9% 11 Charges for services 9,510,412 9,278,316 10,162,516 10,828,594 666,078 6.6% 12 Fines, forteitures and penalities 485,215 355,000 355,000 365,000 10,000 2.8% 13 Use of money and property 1,192,302 1,076,800 1,076,800 1,088,080 11,280 1.0% 14 Other revenue 1,542,803 474,000 904,971 764,845 (140,126) -15.5% 15 Other financing sources/uses 1,728,250 - - - - 16 Total other revenue 15,864,443 12,283,631 13,598,802 14,363,149 764,347 5.6% 17 Total revenues 101,900,189 100,391,631 101,156,802 107,515,649 6,358,847 6.3% EXPENDITURES BY FUNCTION Gereral Government 18 300 City Council - Administration 450,492 588,732 543,723 538,237 (5,486) -1.0% 19 302 City Attorney 729,056 935,000 935,000 965,000 30,000 3.2% 20 310 City Manager - Administration 1,001,332 1,398,431 1,796,715 2,415,538 618,823 34.4% 21 312 CM Economic Development 105,000 163,500 163,500 250,500 87,000 53.2% 22 314 CM Environmental (re-org DS) 205,393 - - - - #DIV/0! 23 320 Human Resources 1,031,479 1,250,445 1,285,977 1,476,974 190,997 14.9% 24 330 Information Technology 3,370,940 4,130,294 4,208,894 4,918,924 710,030 16.9% 25 350 City Clerk - Administration 483,337 544,543 564,172 618,370 54,198 9.6% 26 351 City Clerk - Elections 62,399 3,500 3,500 205,500 202,000 5771.4% 27 360 Finance - Administration 2,424,973 2,722,218 2,810,420 3,105,471 295,051 10.5% 28 Total General Government 9,864,401 11,736,663 12,311,900 14,494,514 2,182,614 17.7% Development Services 29 314 Environmental (re-org from CM)- 385,376 392,948 455,132 62,184 #REF! 30 400 Director (to Eng 700)368,836 - - - - 0.0% 31 405 Administration 498,616 559,319 557,802 680,544 122,742 22.0% 32 410 Land Development (to Eng 730) 3,446,163 4,388,105 4,519,770 3,501,593 (1,018,177) -22.5% 33 415 Regulatory Permits 684,240 210,111 139,440 188,461 49,021 35.2% 34 420 Applicant Deposits - - - - - #DIV/0! 35 430 Advanced Planning & Housing 1,080,172 1,806,456 1,765,872 1,988,808 222,936 12.6% 36 440 Building & Code Enforce 3,422,340 3,049,398 3,848,355 3,522,407 (325,948) -8.5% 37 450 Parking Citations 183,035 229,841 229,841 229,841 - 0.0% 38 730 Eng Inspections (re-org Eng 730)- 1,629,015 1,406,226 - (1,406,226)-100.0% 39 Total Development Services 9,683,401 12,257,621 12,860,252 10,566,786 (2,293,466) -17.8% Engineering 40 700 CIP Eng (from DS 400)1,259,191 2,226,484 2,654,923 2,400,411 (254,512) -9.6% 41 710 Traffic Engineering 806,745 967,092 1,049,261 1,077,071 27,810 2.7% 42 730 Land Dev Eng (re-org DS 730) 1,259,767 - - 3,323,224 3,323,224 #DIV/0! 43 Total Engineering 3,325,703 3,193,576 3,704,184 6,800,706 3,096,522 83.6% Public Safety 44 500 Law Enforcement 13,489,544 17,865,449 17,865,449 19,423,389 1,557,940 8.7% 45 510 Fire Administration 601,802 717,545 714,984 769,992 55,008 7.7% ATTACHMENT 4 2024-05-15 Item #10C Page 24 of 48 General Fund Summary of Revenue, Expenditures, and Transfers Budget Introduction Last Year Current Year Next Year Original Projected Proposed Increase Actual Budget Budget Budget (Decrease) FY 2022-23 FY 2023-24 FY 2023-24 FY 2024-25 $ Change % Change 46 511 Fire Operations 16,148,123 16,744,391 17,969,393 19,130,209 1,160,816 6.5% 47 512 Loss Prevention 649,417 726,415 767,916 925,709 157,793 20.5% 48 513 Disaster Prep 187,856 230,353 262,311 336,725 74,414 28.4% 49 514 Marine Safety 1,586,223 1,858,733 1,887,562 2,206,311 318,749 16.9% 50 515 Junior Lifeguards 289,009 330,366 336,131 354,434 18,303 5.4% 51 Total Public Safety 32,951,973 38,473,252 39,803,745 43,146,769 3,343,024 8.4% Public Works 52 600 Administration 506,968 562,742 584,229 656,581 72,352 12.4% 53 620 Environmental 747 - - - - #DIV/0! 54 630 Street Maintenance 3,122,211 3,685,373 4,054,494 4,022,874 (31,620) -0.8% 55 640 Facility Maint Civic Center 487,872 586,508 590,166 649,281 59,115 10.0% 56 641 Facility Maint Fire Stations 284,817 396,865 398,973 410,765 11,792 3.0% 57 642 Facility Maint Yard 209,020 259,596 261,139 270,980 9,841 3.8% 58 643 Facility Maint Library 332,785 473,623 475,166 456,922 (18,244) -3.8% 59 644 Facility Maint PRCA 350,751 480,037 484,422 715,317 230,895 47.7% 60 650 Stormwater Maintenance 676,516 816,489 932,371 752,790 (179,581) -19.3% 61 651 Stormwater Flood 70,930 96,405 98,582 103,450 4,868 4.9% 62 652 Stormwater Program 764,099 842,298 867,517 971,149 103,632 11.9% 63 Total Public Works 6,806,717 8,199,936 8,747,060 9,010,109 263,049 3.0% Parks, Recreation, and Cultural Arts 64 800 Administration 1,255,153 1,651,001 1,456,403 1,609,231 152,828 10.5% 65 810 Park Maintenance 2,812,540 3,316,229 3,332,241 3,489,007 156,766 4.7% 66 820 Beach Maintenance 701,150 796,303 801,271 807,859 6,588 0.8% 67 821 Surf Permits 27,134 33,500 33,500 33,500 - 0.0% 68 830 Trail Maintenance 336,732 412,791 414,841 419,790 4,949 1.2% 69 840 Recreation Programs 468,736 731,099 752,706 649,756 (102,950) -13.7% 70 850 Community Center 911,240 933,760 948,882 888,981 (59,901) -6.3% 71 856 Comm Ctr Programs 181,136 234,956 236,566 220,901 (15,665) -6.6% 72 857 Comm Ctr Facility Rentals 123,563 208,586 212,329 224,150 11,821 5.6% 73 861 Senior Ctr Programs 111,777 173,419 174,646 426,770 252,124 144.4% 74 876 Facility Programs & Events 652,908 629,156 706,079 752,833 46,754 6.6% 75 877 Facility Rentals 68,760 91,372 93,180 98,152 4,972 5.3% 76 879 Concession & Vending - - - - - #DIV/0! 77 880 Pacific View Arts Center - - - 78,000 78,000 78 881 Cultural Arts 366,543 728,969 742,356 1,376,901 634,545 85.5% 79 Total Parks Rec and Cultural Arts 8,017,372 9,941,141 9,905,000 11,075,831 1,170,831 11.8% Non-Departmental 80 900 Central Purchases 78,337 80,798 5,762,603 72,628 (5,689,975) -98.7% 81 901 Shared Expenses 4,804,865 6,285,778 5,351,215 4,835,649 (515,566) -9.6% 82 Total Non-Departmental 4,883,202 6,366,576 11,113,818 4,908,277 (6,205,541) -55.8% 83 Total expenditures 75,532,770 90,168,765 98,445,960 100,002,992 1,557,032 1.6% 84 Excess revenue over expenditures 26,367,418 10,222,866 2,710,842 7,512,657 4,801,815 177.1% 2024-05-15 Item #10C Page 25 of 48 General Fund Summary of Revenue, Expenditures, and Transfers Budget Introduction Last Year Current Year Next Year Original Projected Proposed Increase Actual Budget Budget Budget (Decrease) FY 2022-23 FY 2023-24 FY 2023-24 FY 2024-25 $ Change % Change TRANSFERS* Transfers In / Sources 85 Transfers in - operating 1,118,078 1,191,877 1,191,877 2,300,842 1,108,965 93.0% 86 Transfers in - capital 1,480,148 1,770,838 5,199,822 1,579,396 (3,620,426) -69.6% 87 Transfers in - other - - - - - #DIV/0! 88 Transfers in - debt service - - - - - #DIV/0! 89 Total transfers in 2,598,226 2,962,715 6,391,699 3,880,238 (2,511,461) -39.3% Transfers Out / Uses 90 Transfers out - operating 5,768,390 6,562,987 12,562,987 4,188,779 (8,374,208) -66.7% 91 Transfers out - capital 11,831,332 3,811,744 5,268,439 3,948,000 (1,320,439) -25.1% 92 Transfers out - other - - - - - #DIV/0! 93 Transfers out - debt service 4,105,504 5,182,970 5,451,165 5,523,200 72,035 1.3% 94 Total transfers out 21,705,226 15,557,701 23,282,591 13,659,979 (9,622,612) -41.3% 95 Net transfers (19,107,000) (12,594,986) (16,890,892) (9,779,741) 7,111,151 -42.1% 96 Net increase (decr) to Fund Balance 7,260,418 (2,372,120) (14,180,050) (2,267,084) Adj 1x Land Purchase from Reserves Reso 2023-102 6,300,000 Adj known CIP items - Council approval TBD (1,245,000) 97 Adjusted incr (decr) to Fund Balance 7,260,418 (2,372,120) (9,125,050) (2,267,084) * See Summary of Operating and Debt Services Transfers for fund details Alternate Analysis Last Year Current Year Next Year Original Projected Proposed Increase Actual Budget Budget Budget (Decrease) EXPENDITURES BY TYPE FY 2022-23 FY 2023-24 FY 2023-24 FY 2024-25 $ Change % Change 98 Personnel 40,805,147 47,111,867 47,102,438 52,646,413 5,543,975 11.8% 99 Contracts and services 32,120,756 40,204,500 42,148,103 44,862,975 2,714,872 6.4% 100 Materials and supplies 1,716,639 2,107,000 2,233,880 2,205,747 (28,133) -1.3% 101 Internal cost allocation 365,950 538,672 538,672 - (538,672) -100.0% 102 Capital outlay 17,283 9,000 6,225,141 92,000 (6,133,141) -98.5% 103 Debt / finance 506,996 197,726 197,726 195,857 (1,869) -0.9% 104 Total expenditures 75,532,770 90,168,765 98,445,960 100,002,992 1,557,032 1.6% Adj for 1x $6.3M Land Purchase 6,300,000 Adjusted total expenditures 92,145,960 100,002,992 7,857,032 8.5% Note: Column totals may not sum due to rounding. 2024-05-15 Item #10C Page 26 of 48 General Fund Summary of Operating and Debt Service Transfers Budget Introduction Last Year Current Year Next Year Original Projected Proposed Increase Actual Budget Budget Budget (Decrease) FY 2022-23 FY 2023-24 FY 2023-24 FY 2024-25 $ Change % Change Transfers In / Sources Transers In - Operating 201 Gas Tax 1,068,428 1,091,317 1,091,317 1,140,577 49,260 4.6% 237 Community Facilities Fund 37,037 28,550 28,550 34,260 5,710 15.4% 238 Fire Mitigation Fund 12,613 72,010 72,010 72,100 90 0.7% 403 Facilities Fund 553,905 553,905 624 Fire Apparatus 500,000 500,000 #DIV/0! Total transfers in - operating 1,118,078 1,191,877 1,191,877 2,300,842 1,108,965 99.2% Transfers Out / Uses Transers Out - Operating 214 Solid Waste 500,000 - - - - 221 Senior Nutrition 133,792 118,273 118,273 - (118,273) -88.4% 222 CDBG 6,271 59,296 59,296 69,260 9,964 158.9% 229 Community Grant 140,000 140,000 140,000 140,000 - 0.0% 293 Village Park MID 30,450 30,450 31,973 1,523 #DIV/0! 294 Wiro Park 17,000 18,190 18,190 19,463 1,273 7.5% 403 Facility Maintenance 1,100,000 1,100,000 2,100,000 - (2,100,000) -190.9% 551 Section 8 52,993 52,993 54,053 1,060 #DIV/0! 561 Pacific Pines 28,593 28,593 28,593 - #DIV/0! 601 Self Insurance 2,812,541 3,462,683 4,962,683 3,531,937 (1,430,746) -50.9% 622 Vehicle Replacement 423,786 386,300 1,386,300 - (1,386,300) -327.1% 623 Mach Equip Replacement 185,000 135,000 635,000 - (635,000) -343.2% 624 Fire Apparatus Replacement 450,000 500,000 2,500,000 - (2,500,000) -555.6% 631 Technology Operations (new)107,250 107,250 - (107,250) #DIV/0! 632 Technology Replacement (new)423,959 423,959 313,500 (110,459) #DIV/0! Total transfers out - operating 5,768,390 6,562,987 12,562,987 4,188,779 (8,374,208) -145.2% Transfers Out - Debt Service 301 Debt Service 387,596 - - - - 0.0% 301 I-Bank Loan Repayment 291,375 1,720,610 1,720,610 1,717,000 (3,610) -1.2% 302 Debt Service EPFA 3,426,533 3,462,360 3,462,360 3,806,200 343,840 10.0% Total transfers out - debt 4,105,504 5,182,970 5,182,970 5,523,200 340,230 8.3% 2024-05-15 Item #10C Page 27 of 48 All City Funds The FY 2024-25 budget across all City funds includes estimated revenues of $135.1 million, a decrease of $1.9 million, or 1.4 percent under the projected FY 2023-24 Revised Budget. With an increase of $6.4 million estimated for the General Fund, the overall decrease is primarily due to $7.1 million in one-time capital grant funding and $2.0 million fire apparatus lease revenue received in FY 2023-24. The top five revenue generating funds include: General Fund. The City's largest and most discretionary fund accounts for 80 percent of the City's total revenue and is primarily funded by property and sales tax. 1. Infrastructure Improvement Fund. This major fund receives revenue from intergovernmental sources like grants and gas taxes, along with the 20 percent share of the City's transient occupancy tax that is restricted to the Coastal Zone Management sub-fund. 2. Cardiff Sanitary Division. Receives revenue from charges for services paid by wastewater customers. Rate studies drive amounts and forecasts. 3. Internal Service Funds. These non-major funds account for goods and services provided by one department or agency to others on a cost reimbursement basis. The Self-Insurance sub- fund receives the majority of revenue, based on a cost-allocation plan. 4. Encinitas Sanitary Division. Receives revenue from charges for services paid by wastewater customers. Rate studies drive amounts and forecasts. 5. Category 2025 General Fund $107,515,649.00 Infrastructure Improvement F…$6,875,025.00 CSD Operations $5,904,990.00 Internal Service Funds $3,117,395.00 ESD Operations $3,056,243.00 Other $8,679,851.00 Revenues Top Five Funds by Estimated Revenue All Funds - excludes transfers ATTACHMENT 5 2024-05-15 Item #10C Page 28 of 48 General Fund Estimated General Fund revenues total $107.5 million—an increase of $6.4 million, or 6.3 percent, over the current FY 2023-24 Revised Budget. The City forecasts solid revenue growth in FY 2024-25 mostly due to high property values and a rebound in tourism. Updated On 9 May, 2024 Reset Broken down by Revenues*General Fund History  Visualization FY22 Actual FY23 Actual FY24 Original Budget FY24 Revised Budget FY25 Proposed Budget Fiscal Year 0.0 100.0M -25.0M 25.0M 50.0M 75.0M DollarsBack Taxes License and permits Intergovernmental Charges for services Fines, forfeitures and penalt… Use of money and property Other revenue Other financing sources/uses Sort By Chart of Accounts   Discussion of Revenue Sources Nearly 87 percent of General Fund revenue is generated from taxes. Property tax and sales tax are the major sources. Charges for services, transient occupancy tax, and franchise tax/fees make up the remainder of the top five categories. Excise tax for cannabis retail sales is a new source added in FY 2023-24. For budgeting purposes, sources that contribute to more than ten percent of General Fund revenue are considered major sources. The City contracts with specialized consultants to assist with revenue management, analysis, and forecasting for the two major sources of property tax and Sales, Use and Transactions (SUT) tax. Sources falling below the ten percent threshold are analyzed and managed in-house. One exception is short-term rental transient occupancy tax, where the City contracts with a service that monitors permit and tax remittance compliance. 2024-05-15 Item #10C Page 29 of 48 Property Tax (Major) Property Tax is the City’s largest revenue source, representing 62 percent of total General Fund revenue. Proposed Budget For FY 2024-25, staff recommends an increase of $4.0 million, or 6.3 percent, based on projections provided by the City’s property tax consultant HdL Coren & Cone with further analysis by staff. The increase is mostly the result of the annual Proposition 13 inflation adjustment for estimated real property values set at the two percent maximum for FY 2024-25 by the County Assessor’s office (based on the California Consumer Price Index, or CCPI). Real estate trends for calendar year 2023 influence FY 2024-25 property taxes. In general, homes are still selling and for more than their current taxed value. Calendar year 2023 saw a continuation of the downturn in the real estate cycle that began in late spring 2022 when interest rate increases were implemented to slow the rate of inflation. As interest rates increased between 2022 and 2023, markets saw fewer single-family residential home sales, due in part to insufficient supply as homeowners with lower interest rates were reluctant to give up existing homes to search for others with higher prices and higher mortgage rates. (Source: HdL Property Tax Newsletter, Sept 2023.) Projections reflect continued growth, although at a more modest pace due to lower sales activity that will affect the assessed value increases from transfers of ownership. Lower sales volume also results in lower Documentary Transfer Tax. Description Property Taxes are an ad valorem tax imposed on real property (land and permanently attached improvements such as buildings) and tangible personal property (movable property) located within the state. California property tax is based on the value of the property rather than on a fixed amount or benefit to the property or persons. Proposition 13 (Article XIIIA of the California Constitution) limits the real property tax rate to one percent of the property's assessed value. The property tax is paid to the county tax collector and allocated to local taxing agencies—cities, counties, special districts, and school districts— pursuant to a statutory allocation formula. As shown in the chart to the right, the Encinitas General Fund receives 24 cents of each property tax dollar. 2024-05-15 Item #10C Page 30 of 48 Historical Data Residential real estate values drive over 87 percent of the City's current $21.9 billion net taxable assessed valuation. Net taxable value for Tax Year 2023-24 increased $1.3 billion, or 6.1 percent over the prior year. The Vehicle License Fee Adjustment Amount (VLFAA) revenue also increases annually in proportion to the growth in gross assessed valuation in a jurisdiction. Over the past 20 years, the City has experienced positive assessed valuation growth each year, resulting in steady property tax revenue growth. Ten years of Assessed Value-Based Revenue by Component is shown in the chart below: Relevant Economic Conditions Statewide, 2023 was a tough year as a shortage of homes for sale and high costs of borrowing continued to have a negative impact on housing inventory and demand. With mortgage rates expected to decline in the next 12 months, home sales should bounce back as buyers and sellers return to a more favorable housing market. Home prices should see a moderate increase in 2024 as well. The median sale price of Encinitas detached single- family homes from January through December 2023 was $1.9 million, a decrease of $27,500, or 1.4 percent from 2022's median sale price. Sales through March 31, 2024 show the median price increasing to $2.1 million, marking the first quarter that the median price has exceeded $2.0 million. In the graph below, 2024 reflects January sales only. (Source: HdL Coren & Cone 2023-2024 Property Tax Reports, March 2024) 2024-05-15 Item #10C Page 31 of 48 Sales Tax (Major) Sales Tax is the City’s second largest source, representing 16 percent of total General Fund revenue. Proposed Budget Staff recommends an increase of $0.8 million, or 4.9 percent, in sales and use tax, based on projections provided by the City’s sales tax consultant HdL with further analysis by staff. Because third quarter adjustments reduced estimated sales tax $1.0 million, the proposed budget is actually lower than the original FY 2023-24 budget. Estimates for FY 2024-25 are projected to be relatively flat based on mixed economic pressures. Volatile economic indicators such as the Federal Funds rate, unemployment levels, and discretionary spending continue to influence outcomes. For example, in the statewide auto and transportation sector, inventory levels improved for many dealers creating a downward pressure on prices. Although higher interest rates and tighter credit standards continue to make loan financing challenging, leasing activity has improved. In Encinitas, recent sales activity has shown consumers shifting their discretionary spending away from tangible goods towards leisure, travel, services, entertainment, and restaurant expenditures. Additionally, food and drug sales decreased in recent quarters as consumers redirected their spending from alcohol purchases for home consumption to dining out. While business and recreational travel is expected remain strong, it is unknown whether residents and visitors will continue to enjoy casual and quick-service dining, with higher menu prices likely to result from implementation of AB 1228, a new State law raising the hourly minimum wage rate to $20 for certain fast food workers effective April 1, 2024. Cities in San Diego County continue to see a reduction in the county use tax pool (where tax on internet sales is recorded and shared proportionally) as e-commerce allocations shift to distribution centers. Sales tax projections do not include additional taxes paid by cannabis businesses, which are considered excise tax. They also do not include a potential one-cent local sales tax measure discussed in the Infrastructure Tax Force final report presented to City Council on February 28, 2024. It is still unknown whether City Council will place the measure on the November 2024 ballot and whether voters will decide to implement the tax. Description Sales tax is calculated as a percentage of the purchase price of goods and is collected by the seller. The City receives one percent of the total 7.75 percent sales tax rate for sales that occur within the City’s jurisdiction. The City has a diversified retail sales tax base and is not heavily dependent on any one business or industry. Historical Data The following 13 year agency trend chart, compiled by HdL and adjusted for economic data, shows tax revenue for sales that occurred through December of each calendar year. While major industry groups and total annual revenue (green line) fluctuate over time, the general trend (grey line) is toward a steady increase in revenue. (Source: HdL Companies 2023 CY Trends, April 2024) 2024-05-15 Item #10C Page 32 of 48 Relevant Economic Conditions As 2024 unfolds, many of the same economic conditions remain in play statewide, with varying effects on the overall outlook. A primary focus is monitoring the Federal Reserve to gauge when interest rates will recede. Monthly unemployment trends and inflation results will determine how swiftly and significantly borrowing costs decrease. Results from the final quarter of 2023 (October - December sales) confirmed a shift in consumer behavior, with people opting for essential household items over more expensive purchases. With the exception of Business/Industry and Restaurants/Hotels, all other major industry groups saw negative comparisons to the fourth quarter of 2022. Consumer debt has soared while personal savings dwindle, suggesting only modest gains in the coming fiscal year. At the national level, US Real Gross Domestic Product (GDP) grew at an annual rate of 3.2 percent in 4Q 2023, driven by increases in consumer spending, exports, and local and state government expenditures. Despite a decline in confidence, consumer spending rose a solid 2.6 percent, inflation adjusted, over the past year. Top categories for spending growth include recreational vehicles and goods (12 percent), new cars (4 percent), restaurants and hotels (4 percent) and recreational services (4 percent). The US should experience a reasonable pace of GDP growth in 2024, led by solid growth in consumer demand. Labor markets will remain tight, industrial production will be steady, and long run interest rates will likely stay in the same range. In many ways 2024 will resemble 2023 with a steady, moderately expanding economy. Strong consumer demand suggests inflation will be running hotter than the 2 percent pace that the Federal Reserve hopes to achieve. (Source: HdL Companies Consensus Forecast April 2024.) 2024-05-15 Item #10C Page 33 of 48 Other Sources of Revenue Charges for Services Charges for Services is the third largest source, representing ten percent of General Fund revenue. Staff estimates an increase of $0.7 million, or 6.6 percent in Charges for Services. Projections assume $0.5 million in new arts program revenue at the Pacific View Arts Center scheduled to open in FY 2024-25. Estimates also reflect CPI adjustments to development (permitting) fees expected to be effective July 1, 2024. Charges for Services is a voluntary charge imposed on an individual for a service or facility provided directly to that individual. A fee may not exceed the estimated reasonable cost of providing the particular service or facility for which the fee is charged, plus overhead. Revenues include recreation program enrollment, along with planning, building, and engineering fees related to residential and commercial development. These revenues are forecasted on the basis of recent receipts and staff’s knowledge of current trends. Transient Occupancy Tax (TOT) TOT is the fourth largest source, representing five percent of total General Fund revenue. Staff estimates an increase of $0.4 million or 7.4 percent for General Fund TOT, based on analysis of activity since FY 2021-22. Revenues for both hotel and short-term vacation rentals are expected to increase as bookings continue to rebound following the COVID-19 pandemic. Proactive enforcement on unpermitted short term rental sites, which began in FY 2022-23, is projected to generate recurring TOT and rental permit revenue. Transient Occupancy Tax (TOT) is a tax imposed on persons staying 30 days or less in a lodging establishment. The tax is collected for both hotel and short-term vacation rentals at a rate of ten percent of the rent charged by the operator. Eight percent of the rent goes to the General Fund, and two percent is restricted to beach sand replenishment and stabilization projects in the Coastal Zone Management Fund (212). These revenues are forecasted on the basis of recent receipts and staff’s knowledge of current trends. Franchise Tax/Fees Franchise Fees are the fifth largest source, representing two percent of total General Fund revenue. Staff estimates a decrease of $0.03 million, or 1.3 percent, in Franchise Fees. Cable and video franchise revenue is expected to continue to remain relatively flat due to limited growth in new subscribers. Gas and electric franchise revenue is projected to decrease slightly due to decreased consumption related to recent rate increases and customers’ ongoing transition to solar energy. Franchise revenue is generated from public utility sources, trash collection franchises and telecommunication franchises conducting business within the City limits. These revenues are forecasted on the basis of recent receipts and staff’s knowledge of current trends. A solid waste franchise fee is collected from EDCO for the exclusive right to collect and process commercial and residential solid waste, recyclable, and green waste. These fees are used to help repair wear and tear on 2024-05-15 Item #10C Page 34 of 48 roads caused by trash trucks driving on City streets and to help fund street sweeping services. On May 12, 2021, Council approved a franchise fee increase—from the existing five percent to ten percent of gross revenues from Encinitas ratepayers—to be effective June 1, 2021. Revenues related to the 5 percent solid waste fee are budgeted and received directly in the Solid Waste Fund. Excise Tax Staff estimates an increase of $0.5 million, or 200 percent, in retail cannabis tax. The current FY 2023-24 is the first year that included new cannabis revenue, estimated at $0.25 million for one site, which opened in February 2024. Projections assume that all four retail locations will commence operations in 2024. Projected revenues are modest because it is unknown when retail sites will open and how much they will receive in sales. The City has not yet received applications for non-retail uses. This new revenue source is a result of the voter-initiated “Measure H” approved on November 3, 2020. City Council approved Ordinance No. 2020-18 adding Chapter 9.25 to the Encinitas Municipal Code allowing certain cannabis-related uses and activities in specified zones. Measure H also requires that the City allow four retail cannabis businesses to operate in the City. On November 8, 2022, the voters approved the City-sponsored ballot measure known as the City of Encinitas Cannabis Business Tax Measure (“Measure L”) allowing the City to adopt ordinances to impose a Cannabis Business Tax. On April 12, 2023, staff introduced Ordinance 2023-03 which imposes a gross receipts tax on all cannabis businesses operating within the City. Council approved the ordinance along with Resolution 2023- 21 setting Cannabis Business Tax rates at seven percent of gross receipts for retail cannabis businesses; four percent of gross receipts for non-retail cannabis businesses; and ten dollars per square footage of canopy area for commercial cultivation of cannabis and/or hemp. Licenses and Permits Staff estimates an increase of $0.08 million, or 27.5 percent, in Licenses and Permits. Proactive enforcement on unpermitted short term rental sites, which began in FY 2022-23, is projected to generate recurring TOT and rental permit revenue. Licenses and Permits are collected on business operation permits, business registration, short term rental permits, security alarm permits and other miscellaneous permits. These revenues are forecasted based on the basis of actual receipts in recent years. Intergovernmental Staff estimates a increase of $0.1 million, or 16.9 percent, in Intergovernmental Revenue. Intergovernmental revenue largely consists of the Cooperative Agreement for Fire Management Services with the Cities of Del Mar and Solana Beach. Intergovernmental includes revenue from other governmental agencies, principally the state and federal governments. These revenues include general or categorical support monies called subventions, as well as grants for specific projects and reimbursements for the costs of some state mandates. These revenues are projected on the basis of the City’s current cost sharing agreements as well as anticipated reimbursements of state mandated costs and excess vehicle license fees collected by the State. 2024-05-15 Item #10C Page 35 of 48 Fines and Penalties Staff estimates an increase of $0.01 million, or 2.8 percent, in Fines and Penalties. This assumes a slight increase in adminstrative citations resulting from increased code enforcement efforts. Fines and Penalties include collections for vehicle code and red‐light violations, parking citations and vehicle abatement. These revenues are forecasted on the basis of recent receipts and staff’s knowledge of current trends. In April 2022, City Council passed Ordinance 2022-05 allowing the City to utilize a private enforcement company in addition to the Sheriff and City staff. Use of Money and Property Staff estimates a increase of $0.01 million, or 1.0 percent, in Use of Money and Property primarily due to an anticipated increase in investment earnings. Use of Money and Property is generated by rental/insurance payments for use of city property, investment earnings, and revenue from the sale of city property. These revenues are forecasted on the basis of recent receipts and staff’s knowledge of current trends. Other Revenue Other Revenue includes interfund revenue, booking fees, cost recovery and other miscellaneous revenue. Revenue in this category remains constant except for the unanticipated one‐time reimbursements from the State for firefighter strike team deployments. Staff budgets conservatively, as fire conditions and deployments vary year-to-year, then adjusts cost recovery revenue and overtime at mid-year. This category also includes excess net revenue payment from the Encinitas Ranch Golf Authority. Other Financing Source/Uses This category is used to account for proceeds of long-term debt, subscriptions, and capital leases. Activity relates to financial statement presentation and typically is not budgeted. Examples include: the Governmental Accounting Standards Board (GASB) Statement No. 87, Leases issued in June 2017 and Statement No. 96, Subscription-Based Information Technology Arrangements issued in May 2020. 2024-05-15 Item #10C Page 36 of 48 Assumptions for Estimates Forecasts utilizing assumptions based on financial policies and economic trends help determine if the City will have sufficient resources to meet the requirements of ongoing, planned, or mandated programs. Forecasting provides an estimate of the financial flexibility of the City, as well as insight into tax, revenues and service options the Council must address. The City's general approach to forecasting is to apply a conservative philosophy that does not overstate revenue nor understate expenditures. This approach: Underestimates revenues and builds in a layer of contingencies for expenditures. While this might make it harder to balance the budget, it reduces the risk of an actual shortfall. Assumes that revenues will be adjusted at midyear when more information about economic trends and actual receipts are available. As a result, the Revised budget tends to be more aligned with actual revenues than the Original budget. The methodology used for forecasting reflects a combination of internal analysis and locally generated consensus forecasts covering such factors as population growth, retail sales, and inflation. For proposed revenue estimates, the City evaluates prior year actual collections and projects current fiscal year ending fund balance based on prior year trend analysis along with current information provided by relevant sources. For the remaining years of the revenue forecast, consensus forecasts—such as the US Bureau of Economic Analysis, University of San Diego Burnham‐Moores Center for Real Estate, and property and sales tax consultants—are used to outline expected trends in key economic and demographic indicators. Typically, these forecasts cover the nation or the state, so adjustments to reflect unique local conditions are sometimes necessary. In general, sources are matched with the economic and demographic variables that most directly affect year‐ to‐year changes in those revenues. For example, sales tax revenue will reflect consensus forecasts related to taxable sales growth; whereas, building permits and plan review revenue will be tied to the expected trends in development. It is recognized that economic forecasting is not an exact science and at times relies upon professional judgment. To reduce the risks of miscalculation, as many factors as possible are used to identify what may contribute to changes. Budget monitoring and amendments also provide opportunities to adjust revenues and expenditures throughout the year. Placeholder for blank page Powered by OpenGov 2024-05-15 Item #10C Page 37 of 48 All City Funds The FY 2024-25 budget for all funds proposes operating expenditures of $131.8 million, an increase of $0.6 million, or 0.4 percent, over the current FY 2023-24 Revised Budget. The operating budget maintains current levels of service while meeting debt, pension, and contractual obligations. It also includes funding for the following new programs discussed during the current Fiscal Year 2023-24: $777K second HOPE team ($335K start up with $442K ongoing) $200K Homeless Solutions Coordinator, new 1.0 full-time equivalent (FTE) position added at midyear $650K Pacific View Arts Center operations, part-time personnel, maintenance, equipment, supplies for new facility and programs, and $347K debt service for new 2024 Bond (Land Purchase). At the second budget workshop on April 17, 2024, City Council added $98,500 for: $50K On-call drainage consulting (Q3) in Engineering capital projects division $40K Additional funding for visitor center and local business promotion (Chamber of Commerce) in economic development $8.5K Heritage Tree Lighting (Encinitas Historical Society) in recreation programs, holiday parade. General Fund The FY 2024-25 budget for the General Fund includes operating expenditures of $100.0 million, an increase of 1.6 million, or 1.6 percent over the current FY 2023-24 Revised Budget. When adjusted for the one-time $6.3 million land purchase in FY 2023-24, the increase is $7.7 million, or 8.5 percent. The General Fund is the City’s primary operating fund. It accounts for basic services—such as public safety, public works, development services, engineering, park and street maintenance, code enforcement—along with the administrative services required to support them. Expenditures ATTACHMENT 6 2024-05-15 Item #10C Page 38 of 48 Updated On 9 May, 2024 Reset Broken down by Expenses*General Fund History  Visualization FY22 Actual FY23 Actual FY24 Original Budget FY24 Revised Budget FY25 Proposed Budget Fiscal Year 0.0 100.0M 25.0M 50.0M 75.0M DollarsBack Personnel Contracts and services Materials and supplies Internal cost allocation Capital outlay Debt / finance Sort By Chart of Accounts   Discussion of Expense Types Personnel Personnel represents 52.6 percent of the FY 2024-25 General Fund operating expenditure budget. Staff proposes an increase of $5.5 million, or 11.8 percent over the current FY 2023-24. The proposed budget honors negotiated labor contracts and meets CalPERS pension obligations for current Memoranda of Understanding (MOUs): Encinitas Firefighters Association (EFFA) expires December 31, 2025 Service Employees’ International Union (SEIU) expires June 30, 2027, and Encinitas Battalion Chiefs Association (IAFF) expires June 30, 2027. No increases to the number of City employees are proposed. Scheduled advancements and reclassifications needed to support enhanced services and continuity of operations are included in the FY 2024-25 personnel budget. The City’s FY 2023-24 full-time equivalent (FTE) employee count totaled 249.40 FTE, after addiing a new Homeless Services Coordinator position on February 28, 2024. Examples of personnel costs include salaries, benefits, uniforms, and training for permanent employees and temporary (contract) staff. Contracts and Services Contracts and Services represent 44.9 percent of the General Fund expenditure budget. Staff proposes an increase of $2.7 million, or 6.4 percent, over current FY 2023-24. The proposed Contracts and Services budget includes contracted increases and inflationary adjustments. The $19.2 million law enforcement agreement with the San Diego County Sheriff is the City’s largest contract, representing 43 percent of the Contracts and Services category and 19 percent of the General Fund operating 2024-05-15 Item #10C Page 39 of 48 expenditure budget. A contracted 3.5 percent increase is included in the proposed budget. A second HOPE team was added added in the proposed budget. Starting in FY 2024-25, $0.5 million in General Fund payments to the Fleet Maintenance Fund (621) are budgeted as Other Interfund Transactions, which are considered Contracts and Services, instead of Internal Cost Allocation. The change is intended to provide consistency with how other funds account for fleet maintenance services. The City contracts for services in many areas including law enforcement, building plan check, engineering inspections, miscellaneous planning review, animal services, emergency dispatch, recreation program instruction, and maintenance of parks, beaches, trails, trees, streets, and facilities. Expenditures also represent a wide array of charges, like audit services and travel, along with contracts with outside agencies. Materials and Supplies Materials and Supplies represent 2.2 percent of General Fund operating expenditures. For FY 2024-25, staff proposes an decrease of $0.03 million, or 1.3 percent, in Materials and Supplies. This includes inflationary increases along with a slight decrease in one-time Pacific View start up costs budgeted in the current FY 2023-24. This category includes consumable items costing less than $5,000 with an estimated life of less than two years. Items include office supplies, parts, sign materials, etc. Internal Cost Allocation Staff is proposing a $0.5 million, or 100% decrease in Internal Cost Allocation, and a related increase in Contracts and Services. Starting in FY 2024-25, General Fund payments to the Fleet Maintenance Fund (621) are budgeted as Other Interfund Transactions, which are considered Contracts and Services, instead of Internal Cost Allocation. The change is intended to provide consistency with how other funds account for fleet maintenance services. Cost allocation plans are used to calculate the cost of support services provided by City administrative departments to other City funds and programs, including business-type activities such as water and wastewater operations. The General Fund, Fleet Maintenance Fund, Risk Management Fund, Fleet Replacement Fund, and Wastewater Support Fund provide support services to other funds or programs. The most recent cost allocation plan includes the General Fund (601) and Fleet Maintenance (621), while the other three funds are calculated in-house. While the City does not charge other General Fund departments during budget or year-end adjustment processes, calculated charges to Development Services, Engineering, and Fire Prevention are utilized in calculating the cost of providing services to the public and determining appropriate fee levels for various types of development applications. Capital Outlay For FY 2024-25, staff proposes a decrease of $6.1 million, or 98.5 percent, in Capital Outlay, primarily due to the one-time $6.3 million land purchase budgeted in the current FY 2023-24. 2024-05-15 Item #10C Page 40 of 48 This category includes all purchases in excess of $5,000 of a capital nature. Vehicles and heavy equipment are excellent examples of normal expenditures in this category. This category represents one-time General Fund expenditures and varies year-to-year based on the need for new machinery and equipment. Debt / Finance For FY 2024-25, staff proposes a decrease of $1,896, or 0.9 percent, in Debt/Finance. The Debt/Finance category typically remains flat year-to-year with amounts tied to an amortization schedule for the City's share of Regional Communications System infrastructure. Costs represent payments toward principal and interest. Powered by OpenGov 2024-05-15 Item #10C Page 41 of 48 Five‐Year Capital Improvement ProgramFY 2025 to FY 2029 Plan ‐ By TypeFY 2024‐25 Budget IntroductionIncludes changes to CIP Plan Adopted June 21, 2023:May 15, 2024*Directed by Council at Budget Workshop 2 on April 17, 2024In $ thousandsProposed Projected Projected Projected Projected 5 Year TotalTypeTitleProject Funding Source FY 2024‐25 FY 2025‐26 FY 2026‐27 FY 2027‐28 FY 2028‐29 FY2025 ‐ FY2029DrainageN101 Drainage Improvements *extend design to GrandviewCD23A101 ‐ General Fund1,800 ‐ ‐ ‐ ‐ 1,800 Storm Drain Repair *not funding FY25CD05E 101 ‐ General Fund250 250 250 250 1,000 Drainage Total1,800 250 250 250 250 2,800 FacilitiesCivic Center Improvements CF16A 403 ‐ Facilities100 500 100 100 100 900 Community Center Improvements CF18B 403 ‐ Facilities100 75 75 75 75 400 Fire Stations ImprovementsCF16B 403 ‐ Facilities25 50 50 25 50 200 Library ImprovementsCF16F 403 ‐ Facilities50 50 50 50 50 250 Lifeguard Facility Improvements CF20A 403 ‐ Facilities25 40 40 40 40 185 Pacific Pines Maintenance Schedule WC18D 561 ‐ Pacific Pines65 75 26 17 11 194 Pacific View Arts Center ImprovementsCF26A 403 ‐ Facilities‐ 25 25 25 25 100 Park Facilities Improvements CF23A 403 ‐ Facilities75 75 75 75 75 375 PW Facility Improvements CF16D 403 ‐ Facilities50 50 50 50 50 250 Facilities Total490 940 491 457 476 2,854 Mobility Improvements ADA Curb Ramp Project (Transition Plan Compliance)CS16C 101 ‐ General Fund50 50 50 50 50 250 ECR/Santa Fe Protected Intersection *add new projectCS25B 101 ‐ General Fund800 ‐ ‐ ‐ ‐ 800 General Mobility ImprovementsCS18E 101 ‐ General Fund300 300 300 300 300 1,500 Innovative Bike Lanes *not funding FY25CS18D 101 ‐ General Fund‐ 25 25 25 25 100 Orpheus/Paul Ecke Central Bike Project *add new projectCS25C 101 ‐ General Fund60 ‐ ‐ ‐ ‐ 60 Safe Routes to SchoolCS01E 101 ‐ General Fund200 200 200 200 200 1,000 Traffic Safety and Calming *not funding FY25CS02F101 ‐ General Fund‐ 75 75 75 75 300 Mobility Improvements Total1,410 650 650 650 650 4,010 1 of 3ATTACHMENT 7A2024-05-15Item #10CPage 42 of 48 Five‐Year Capital Improvement ProgramFY 2025 to FY 2029 Plan ‐ By TypeFY 2024‐25 Budget IntroductionIncludes changes to CIP Plan Adopted June 21, 2023:May 15, 2024*Directed by Council at Budget Workshop 2 on April 17, 2024In $ thousandsProposed Projected Projected Projected Projected 5 Year TotalTypeTitleProject Funding Source FY 2024‐25 FY 2025‐26 FY 2026‐27 FY 2027‐28 FY 2028‐29 FY2025 ‐ FY2029Parks and Beaches Beach Habitat StudyWB16A 212 ‐ Coastal Zone Mgmt40                         40                         40                         40                         40                         200                       Beach Staircase Access Refurbishment ‐ Swami's *not funding FY25CP2‐A 101 ‐ General Fund‐                        550                       ‐                        ‐                        ‐                        550                       Beacon's Coastal Bluff Restoration ProjectCP22C 212 ‐ Coastal Zone Mgmt8                           8                           8                           8                           8                           41                         Coastal Storm Damage Reduction ProjectWB16C 212 ‐ Coastal Zone Mgmt150                       150                       150                       150                       150                       750                       Dune Restoration ProjectCP16A 212 ‐ Coastal Zone Mgmt‐                        ‐                        ‐                        ‐                        50                         50                         Park Improvement Projects CP04G 101 ‐ General Fund238                       245                       252                       260                       268                       1,264                    SCOUP‐Sand Compatiblity Opportunistic Use ProgramWB08C 212 ‐ Coastal Zone Mgmt100                       100                       100                       100                       100                       500                       Parks and Beaches Total536                       1,093                    551                       558                       616                       3,354                    Streets and Rail CorridorAnnual Street OverlayCS25A 211 ‐ TransNet2,370                    2,398                    2,428                    2,496                    2,560                    12,250                 Annual Street Overlay ‐ HUTACS25A201 ‐ Gas Tax (HUTA)534                       523                       513                       502                       492                       2,565                    Annual Street Overlay ‐ RMRA SB1CS25A201 ‐ Gas Tax (SB1)1,539                    1,508                    1,478                    1,448                    1,419                    7,391                    Street Light & Traffic Signal ReplacementsCS17G 295 ‐ Encinitas LLD40                         40                         40                         40                         40                         200                       297 ‐ Encinitas Ranch LLD5                           5                           5                           5                           5                           25                         Streets and Rail Corridor Total4,487                    4,474                    4,463                    4,491                    4,516                    22,431                 StudiesEncinitas Habitat Stewardship ProgramWC11A 101 ‐ General Fund100                       100                       100                       100                       100                       500                       Housing Element UpdateWC14B 101 ‐ General Fund‐                        ‐                        ‐                        750                       750                       1,500                    Native Plant Demo Garden & Education *add new projectWC25B 101 ‐ General Fund150                       ‐                        ‐                        ‐                        ‐                        150                       Resource Management Element UpdateWC25A 101 ‐ General Fund250                       250                       ‐                        ‐                        ‐                        500                       Studies Total500                       350                       100                       850                       850                       2,650                    2 of 32024-05-15Item #10CPage 43 of 48 Five‐Year Capital Improvement ProgramFY 2025 to FY 2029 Plan ‐ By TypeFY 2024‐25 Budget IntroductionIncludes changes to CIP Plan Adopted June 21, 2023:May 15, 2024*Directed by Council at Budget Workshop 2 on April 17, 2024In $ thousandsProposed Projected Projected Projected Projected 5 Year TotalTypeTitleProject Funding Source FY 2024‐25 FY 2025‐26 FY 2026‐27 FY 2027‐28 FY 2028‐29 FY2025 ‐ FY2029WastewaterBatiquitos 2004 Pump Station ImprovementCE04A 522 ‐ Encinitas Sanitary Div311                       471                       471                       125                       125                       1,504                    Collection System Rehabilitation CE04H 522 ‐ Encinitas Sanitary Div1,080                    750                       300                       500                       750                       3,380                    CSD Collection System Rehab CC04E 512 ‐ Cardiff Sanitary Div500                       500                       500                       1,000                    1,000                    3,500                    Encina Plant Improvements CE25B 522 ‐ Encinitas Sanitary Div1,265                    1,586                    1,712                    1,682                    1,553                    7,797                    Moonlight Beach Pump Station RehabilitationCE22D522 ‐ Encinitas Sanitary Div200                       ‐                        ‐                        ‐                        ‐                        200                       Olivenhain Inlet Gate Replacement CC24B 512 ‐ Cardiff Sanitary Div100                       ‐                        ‐                        ‐                        ‐                        100                       SEJPA Plant Improvements CC25A 512 ‐ Cardiff Sanitary Div605                       625                       625                       650                       650                       3,155                    Sewer Main Condition Assessment CC24C 512 ‐ Cardiff Sanitary Div75                         ‐                        ‐                        ‐                        ‐                        75                         CE24C 522 ‐ Encinitas Sanitary Div75                         ‐                        ‐                        ‐                        ‐                        75                         Wastewater Total4,211                    3,932                    3,609                    3,957                    4,078                    19,786                 Grand Total13,434                 11,689                 10,113                 11,212                 11,437                 57,885                 3 of 32024-05-15Item #10CPage 44 of 48 Five‐Year Capital Improvement ProgramFY 2025 to FY 2029 Plan ‐ By FundFY 2024‐25 Budget IntroductionIncludes changes to CIP Plan Adopted June 21, 2023:May 15, 2024*Directed by Council at Budget Workshop 2 on April 17, 2024In $ thousandsProposed Projected Projected Projected Projected 5 Year TotalFunding SourceTitleProject Type FY 2024‐25 FY 2025‐26 FY 2026‐27 FY 2027‐28 FY 2028‐29 FY2025 ‐ FY2029101 ‐ General FundADA Curb Ramp Project (Transition Plan Compliance)CS16C Mobility Improvements50 50 50 50 50 250 Beach Staircase Access Refurbishment ‐ Swami's *not funding FY25CP2‐A Parks and Beaches‐ 550 ‐ ‐ ‐ 550 ECR/Santa Fe Protected Intersection *add new projectCS25B Mobility Improvements800 ‐ ‐ ‐ ‐ 800 Encinitas Habitat Stewardship ProgramWC11A Studies100 100 100 100 100 500 General Mobility ImprovementsCS18E Mobility Improvements300 300 300 300 300 1,500 Housing Element UpdateWC14B Studies‐ ‐ ‐ 750 750 1,500 Innovative Bike Lanes *not funding FY25CS18D Mobility Improvements‐ 25 25 25 25 100 N101 Drainage Improvements *extend design to GrandviewCD23A Drainage1,800 ‐ ‐ ‐ ‐ 1,800 Native Plant Demo Garden & Education *add new projectWC25B Studies150 ‐ ‐ ‐ ‐ 150 Orpheus/Paul Ecke Central Bike Project *add new projectCS25C Mobility Improvements60 ‐ ‐ ‐ ‐ 60 Park Improvement Projects CP04G Parks and Beaches238 245 252 260 268 1,264 Resource Management Element UpdateWC25A Studies250 250 ‐ ‐ ‐ 500 Safe Routes to SchoolCS01E Mobility Improvements200 200 200 200 200 1,000 Storm Drain Repair *not funding FY25CD05E Drainage250 250 250 250 1,000 Traffic Safety and Calming *not funding FY25CS02F Mobility Improvements‐ 75 75 75 75 300 101 ‐ General Fund Total3,948 2,045 1,252 2,010 2,018 11,274 201 ‐ Gas Tax (HUTA) Annual Street Overlay ‐ HUTA CS25A Streets and Rail Corridor534 523 513 502 492 2,565 201 ‐ Gas Tax (HUTA) Total534 523 513 502 492 2,565 201 ‐ Gas Tax (SB1) Annual Street Overlay ‐ RMRA SB1 CS25A Streets and Rail Corridor1,539 1,508 1,478 1,448 1,419 7,391 201 ‐ Gas Tax (SB1) Total1,539 1,508 1,478 1,448 1,419 7,391 211 ‐ TransNetAnnual Street OverlayCS25A Streets and Rail Corridor2,370 2,398 2,428 2,496 2,560 12,250 211 ‐ TransNet Total2,370 2,398 2,428 2,496 2,560 12,250 1 of 3ATTACHMENT 7B2024-05-15Item #10CPage 45 of 48 Five‐Year Capital Improvement ProgramFY 2025 to FY 2029 Plan ‐ By FundFY 2024‐25 Budget IntroductionIncludes changes to CIP Plan Adopted June 21, 2023:May 15, 2024*Directed by Council at Budget Workshop 2 on April 17, 2024In $ thousandsProposed Projected Projected Projected Projected 5 Year TotalFunding SourceTitleProject Type FY 2024‐25 FY 2025‐26 FY 2026‐27 FY 2027‐28 FY 2028‐29 FY2025 ‐ FY2029212 ‐ Coastal Zone Mgmt Beach Habitat StudyWB16A Parks and Beaches40                         40                         40                         40                         40                         200                       Beacon's Coastal Bluff Restoration ProjectCP22C Parks and Beaches8                           8                           8                           8                           8                           41                         Coastal Storm Damage Reduction ProjectWB16C Parks and Beaches150                       150                       150                       150                       150                       750                       Dune Restoration ProjectCP16A Parks and Beaches‐                        ‐                        ‐                        ‐                        50                         50                         SCOUP‐Sand Compatiblity Opportunistic Use ProgramWB08CParks and Beaches100                       100                       100                       100                       100                       500                       212 ‐ Coastal Zone Mgmt Total298                       298                       298                       298                       348                       1,541                    295 ‐ Encinitas LLD Street Light & Traffic Signal ReplacementsCS17G Streets and Rail Corridor40                         40                         40                         40                         40                         200                       295 ‐ Encinitas LLD Total40                         40                         40                         40                         40                         200                       297 ‐ Encinitas Ranch LLD Street Light & Traffic Signal ReplacementsCS17GStreets and Rail Corridor5                           5                           5                           5                           5                           25                         297 ‐ Encinitas Ranch LLD Total5                           5                           5                           5                           5                           25                         403 ‐ FacilitiesCivic Center Improvements CF16A Facilities100                       500                       100                       100                       100                       900                       Community Center Improvements CF18B Facilities100                       75                         75                         75                         75                         400                       Fire Stations Improvements CF16B Facilities25                         50                         50                         25                         50                         200                       Library ImprovementsCF16F Facilities50                         50                         50                         50                         50                         250                       Lifeguard Facility Improvements CF20A Facilities25                         40                         40                         40                         40                         185                       Pacific View Arts Center ImprovementsCF26A Facilities‐                        25                         25                         25                         25                         100                       Park Facilities Improvements CF23A Facilities75                         75                         75                         75                         75                         375                       PW Facility Improvements CF16D Facilities50                         50                         50                         50                         50                         250                       403 ‐ Facilities Total425                       865                       465                       440                       465                       2,660                    512 ‐ Cardiff Sanitary DivCSD Collection System Rehab CC04E Wastewater500                       500                       500                       1,000                    1,000                    3,500                    Olivenhain Inlet Gate Replacement CC24B Wastewater100                       ‐                        ‐                        ‐                        ‐                        100                       SEJPA Plant Improvements CC25A Wastewater605                       625                       625                       650                       650                       3,155                    Sewer Main Condition Assessment CC24C Wastewater75                         ‐                        ‐                        ‐                        ‐                        75                         512 ‐ Cardiff Sanitary Div Total1,280                    1,125                    1,125                    1,650                    1,650                    6,830                    2 of 32024-05-15Item #10CPage 46 of 48 Five‐Year Capital Improvement ProgramFY 2025 to FY 2029 Plan ‐ By FundFY 2024‐25 Budget IntroductionIncludes changes to CIP Plan Adopted June 21, 2023:May 15, 2024*Directed by Council at Budget Workshop 2 on April 17, 2024In $ thousandsProposed Projected Projected Projected Projected 5 Year TotalFunding SourceTitleProject Type FY 2024‐25 FY 2025‐26 FY 2026‐27 FY 2027‐28 FY 2028‐29 FY2025 ‐ FY2029522 ‐ Encinitas Sanitary Div Batiquitos 2004 Pump Station ImprovementCE04A Wastewater311                       471                       471                       125                       125                       1,504                    Collection System Rehabilitation CE04H Wastewater1,080                    750                       300                       500                       750                       3,380                    Encina Plant Improvements CE25B Wastewater1,265                    1,586                    1,712                    1,682                    1,553                    7,797                    Moonlight Beach Pump Station RehabilitationCE22D Wastewater200                       ‐                        ‐                        ‐                        ‐                        200                       Sewer Main Condition Assessment CE24C Wastewater75                         ‐                        ‐                        ‐                        ‐                        75                         522 ‐ Encinitas Sanitary Div Total2,931                    2,807                    2,484                    2,307                    2,428                    12,957                 561 ‐ Pacific Pines Pacific Pines Maintenance Schedule WC18D Facilities65                         75                         26                         17                         11                         194                       561 ‐ Pacific Pines Total65                         75                         26                         17                         11                         194                       Grand Total13,434                 11,689                 10,113                 11,212                 11,437                 57,885                 3 of 32024-05-15Item #10CPage 47 of 48 LIST NO. STRATEGIC PLAN PRIORITY PROJECT NAME PROJECT NUMBER GRANT / OTHER FUNDING STUDY/ INITIAL EVAL.DESIGN CONST.NOTES / UNFUNDED ESTIMATE F Pacific View Improvements CF20D No Complete in FY 24 H Traffic Signal Modifications (Left Turn Permissive Traffic Signal Improvements)CS02G GRANT Complete in FY 24 Wales Drive / Crest Drive Gate CS23E No Complete in FY 24 A Streetlight Conversion Project CS17H GRANT In Construction D Leucadia Streetscape Segment C West (Jupiter St - La Costa Ave)CS23D OTHER In Construction E Santa Fe Drive Corridor Improvements (Western Phase)CS19E GRANT In Construction Saxony Rd & Quail Gardens Dr Mobility Enhancements Project CS24E No In Advertisement Emergency Bicycle Safety Enhancements Project CX24A No In Advertisement Olivenhain Trail Enhancements Project (Rancho Santa Fe Road Fencing)CP23E GRANT In Advertisement Cardiff Sports Park LED Retrofit Project CP23C GRANT In Advertisement N Santa Fe Drive Corridor Improvements (Eastern Phase)CS19E GRANT Start CON in FY 24/25 P Beacon's Beach Parking Lot CP22A No Start CON in FY 24/25 R Highway 101 Walkway to Solana Beach CS22D GRANT Start CON in FY 24/25 Scott Valley Park Playground Replacement Project CP24A GRANT Start CON in FY 24/25 Wiro & Orpheus Park Playground Replacement Project CP23D GRANT Start CON in FY 24/25 Glen Park Playground Replacement Project CP24B No Start CON in FY 24/25 O Citywide Leading Pedestrian Intervals (LPI) Project CS22B GRANT Start CON in FY 24/25 Protected Intersection at S El Camino Real & Santa Fe Dr CS25B No N/A Start CON in FY 24/25 U Citywide Pedestrian Crossing Upgrades CS23G GRANT TBD C Beach Staircase Access Refurbishment (Grandview)CP23A No TBD V ADA Parking Lot Upgrades (Glen Park)CF18A No TBD W North Coast Highway 101 Drainage Improvements CD23A GRANT -$18,800,000 X Leucadia Blvd Roundabout at Hygeia (Roundabout Only) CS18B OTHER -$1,550,000 Y Leucadia Blvd Roundabout at Hygeia (Pedestrian Improvements Only)CS18B OTHER -$800,000 CC Leucadia Streetscape Segment A South & Drainage (A St - Marcheta St)TBD TBD -$4,033,000 DD Leucadia Streetscape Segment B & Drainage (Basil St - Jupiter St)TBD TBD -$27,250,000 Z Birmingham Drive Complete Streets CS17B No -$27,000,000 AA Verdi Pedestrian Undercrossing CS16E No -$17,440,000 GG Lake Drive Storm Drain Replacement TBD No -$6,540,000 EE Citywide Rail Corridor Quiet Zone CS23B No -$12,535,000 II Leucadia At-Grade Rail Crossings CS24B No -$6,000,000 FF Recreational Trails Development (Trail 82 - Rancho Santa Fe Road)CP00F OTHER -$4,905,000 PP La Costa Avenue Pedestrian Path CS24C No N/A -$1,000,000 Safety & Mobility Improvements in the Vicinity of Housing Element Sites WC23B No --TBD HH La Costa Avenue Improvements CS11C OTHER --TBD QQ Vulcan Pedestrian Path CS24D No --TBD KK Leucadia Watershed Master Plan (Implementation - Vulcan)WD19E No --$32,700,000 NN Leucadia Blvd / I-5 Bridge Rail Repair TBD No --TBD MM Beach Staircase Access Refurbishment (Swami's)CP23A No --$550,000 Orpheus Park / Paul Ecke Central Bike Project CS25C No --TBD JJ S Coast Highway 101 Pedestrian Crossing at Solana Beach TBD No --TBD OO San Elijo Bridge Rehabilitation (Highway Bridge Program)CS23F GRANT ---TBD General Mobility Improvements CS18E No Safe Routes to School Sidewalk Program CS01E No Street Light & Traffic Signal Replacements CS17G OTHER Annual Street Overlay CS25A OTHER ENGINEERING CAPITAL PROJECTS BY STATUS FY 2024-2025 Date Updated: 05/07/2024 ANNUAL PROJECTS ANNUAL BUDGET $300,000 $200,000 $45,000 $4,450,000 Complete Funded / Not Complete Partially Unfunded Unfunded ATTACHMENT 8 2024-05-15 Item #10C Page 48 of 48