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Budget FY2022-23 Operating Revise and CIP - Budget in BriefInteractive Story - Click on graphics to explore the data Download as a PDF Budget Message Honorable Mayor and Members of the City Council: It is my pleasure to present to you the balanced budget for Fiscal Year 2022-23. The Budget reflects a total City revenue budget of $116.4 million and an expenditure budget of $105.6 million. It presents a General Fund with revenues of $92.3 million and expenditures of $82.8 million. Capital expenditures across all funds total $22.5 million. The Budget supports Council's mission to preserve, protect, and provide innovate services that enhance the quality of life for residents, visitors, and businesses in Encinitas. The City has an established financial policy regarding maintenance of adequate financial reserves. The Budget ensures that the Council's reserve policy is met. The contingency reserve at 20 percent of operating expenditures is fully funded at $16.6 million. The budget stabilization reserve is fully funded at two percent of revenue or $1.8 million. $116,376,483.00 Revenues in 2023 General Fund Other ESD Operatio... Internal Ser... CSD Operatio... Infrastructu... $105,626,843.00 Expenses in 2023 General Fund Other Lighting and... CSD Operatio... Debt Service... Internal Ser... Budget Preparation In addition to the typical budget cycle, Council held a workshop on March 9, 2022 to receive public input on the use of $8.1 million in federal American Rescue Plan Act of 2021 (ARPA) funds. On April 20, 2022, Council approved the receipt of ARPA funding and appropriated the funds to the San Diego County Sheriff law enforcement agreement, releasing the same amount of funding from the General Fund for general operations. Budget Workshops were held at a special meeting on March 23 and continued at the regular City Council meeting on April 13, 2022. During the workshops, staff presented the six-year financial forecast for the General Fund and Council provided direction on the City's Capital Improvement Program including prioritization, timelines and project funding. B udget in B rief Fiscal Year 2022-23 Operating Revise and CIP Estimated Revenues by Fund Excludes transfers in Proposed Expenditures by Fund Excludes transfers out Budget Priorities The City Council’s budget priorities are reflected in the Budget to address needed capital improvement projects and critical services to the community addressing public safety, housing, green initiatives, protecting natural resources, mobility, and connectivity. On May 11, 2022, staff introduced the proposed FY 2022-23 operating budget and CIP reflecting the priorities for review, public input, and Council direction. On June 15, 2022, Council adopted the proposed operating and CIP budgets with Resolution 2022-66. The Budget reflects the Council’s direction to fund the following significant programs and projects: $20 million for future phases of the Leucadia Streetscape - approved by Council in the FY 2021-22 CIP budget with construction bidding in FY 2022-23; $6.5 million to renovate the Pacific View property as a cultural arts center for the community ($0.5M spent in FY 2021-22 for design services); $1.1 million from the General Fund for direct COVID costs; $750K for Quiet Zone design; $300K for extension of CycleTrack to K Street - Coast Highway 101 Separated Bike Lanes; $250K added to the annual paving contract; and $100K for Rancho Santa Fe Road improvements. In addition to these much-needed CIP projects, the budget includes: Additional funding for the Habitat Restoration Program; Doubling the funding for the Quick Build/Mobility Program; Additional funding for mental health and outreach services identified in the Homeless Action Plan; An increase in funding for the landscape maintenance and clean-up contract for services along the Coastal Rail Trail, the rail corridor along Vulcan, and Cottonwood Creek Park; and Funding to meet the labor agreement obligations with SEIU and the firefighter employee union associations. Conclusion Thank you to the Mayor and City Council for your leadership and our entire City staff for providing outstanding service to the Encinitas community. A budget document takes many hours of collaboration and teamwork. I would like to offer special thanks to our Finance Department led by Director Teresa McBroome, Assistant Director Tom Gallup, Budget Manager Kelly Sanderson, and the dedicated department budget coordinators for their hard work to complete the budget documents. I am also grateful to the City’s executive leadership team who worked hard to squeeze as many projects/programs as possible out of the funds available which is a testament to their commitment to the City organization and the community. Respectfully submitted, Pamela Antil City Manager Community Profile Elected O fficials 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. About Encinitas Located along six miles of Pacific coastline in northern San Diego County, the City of Encinitas offers a unique blend of old-world charm and sophistication, and new-world culture. Incorporated in 1986, the city brought together the communities of New Encinitas, Old Encinitas, Cardiff-by-the-Sea, Olivenhain and Leucadia to create a single city rich in history and steeped in tradition. With a population of over 60,000 people, the City of Encinitas has something for everyone. With its pristine beaches and rolling hills, famous Botanic Garden and vibrant downtown business district, the City of Encinitas attracts visitors from all over the world. Demographics The population of the City of Encinitas has remained relatively stable over the last ten years. A dip occurred in 2009 during the Great Recession. Source: State Department of Finance Population Estimates (E-1) 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: Census.gov via Datacommons.org The median age has increased slightly over the last ten years. Source: Census.gov via Datacommons.org 61,515 Demographics in 2023 0 20K 40K 60K 80K 1997 2010 2023 120,488 Demographics in 2021 0 50K 100K 150K 2013 2017 2021 43 Demographics in 2020 0 10 20 30 40 50 2012 2016 2020 City Population Median Income Median Age Services Provided by Each Department City Council - The governing body of the City. The role of the Mayor and City Council is to determine policy for the City. 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 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. Law Enforcement - Services are provided through the City's contract with the San Diego County Sheriff. The Station Captain serves as the 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. Public Works - Provides street, wastewater, and stormwater system maintenance and manages the City's facilities, vehicles, and heavy equipment. Operating Budget Five-Year Summary - All Funds The following interactive graph summarizes revenue and expense trends by showing actuals for three 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 21 Oct, 2022 Reset Broken down by Types History Funds  Visualization 2018-19 Actual 2019-20 Actual 2020-21 Actual 2021-22 Original Budget 2022-23 Proposed Budget Fiscal Year 0.0 100.0M 50.0MDollarsBack Revenues Expenses Sort By Chart of Accounts   Proposed Operating Expenditures $105,626,843.00 Expenses in 2023 Fire and... Law Enfo... Public W... Other Parks Re... C ity Man... $105,626,843.00 Expenses in 2023 General ... Other Lighting... C SD Oper... Debt Ser... Internal... $105,626,843.00 Expenses in 2023 Contract... Other Internal... Material... Debt/Fin... Personne... By Department All Funds - Excludes Transfers By Fund All Funds - Excludes transfers out By Type All Funds - Excludes transfers out G eneral 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, code enforcement, along with the administrative services required to support these programs. The FY 2022-23 Proposed Budget for the General Fund includes: Estimated revenues of $92.3 million Proposed operating expenditures of $82.8 million Proposed capital expenditures of $6.9 million in the CIP budget Projected FY 2022-23 General Fund unassigned ending fund balance of $2.1 million. Where does the money come from?How is the money is spent? Over 85 percent of revenue in the General Fund is made up of three sources: property tax, sales tax, and transient occupancy tax (TOT). Property tax is collected by County based on the value of real property and tangible personal property located within the state. Sales tax is calculated as a percentage of the purchase price and 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. Transient occupancy tax is imposed on persons staying 30 days or less in a lodging establishment. The City's TOT rate is ten percent of the room charge and is collected by hoteliers and paid to the City. Eighty percent of the TOT collected is deposited to the General Fund and 20 percent is deposited to the Coastal Zone Management Fund for sand replenishment projects. Additional sources such as fees and charges, franchise taxes, fines and licenses and permits represent the remainder of the total General Fund revenue. 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. Personnel includes salary and benefits for both full-time staff and temporary and seasonal staff. Contracts and services represents a wide-array of charges and contracts with consultants and outside agencies. Examples include law enforcement, park maintenance, professional consulting (such as legal or audit services), training, and other consulting and maintenance. Materials and supplies budgets for consumable items costing less than $5,000 with an estimated useful life less than two years--like office supplies and small parts. Smaller categories such as internal cost allocation, capital outlay, and debt/finance represent the remaining percent of the total General Fund expenditures. $92,330,472.00 Revenues in 2023 Taxes Other Other Revenu... Intergovernm... Use of Money... Charges for ... $82,792,152.00 Expenses in 2023 Personnel Other Debt/Finance Internal Cos... Materials & ... Contracts & ... Revenues by Source - General Fund Excludes transfers in Expenditures by Type - General Fund Excludes transfers out $92,330,472.00 Revenues in 2023 Non-Departme... Other Engineering Fire and Mar... Parks Recrea... Development ... $82,792,152.00 Expenses in 2023 Fire and Mar... Law Enforcem... Other Public Works Parks Recrea... D evelopment ... Interfund Transfers Updated On 21 Oct, 2022 Reset Broken down by Types History Funds  Visualization 2018-19 Actual 2019-20 Actual 2020-21 Actual 2021-22 Original Budget 2022-23 Proposed Budget Fiscal Year 0.0 20.0M 40.0M DollarsBack Transfers Out/Uses Transfers In/Sources Sort By Chart of Accounts   Revenue by Department - General Fund Excludes transfers in Expenditures by Department - General Fund Excludes transfers out Capital Improvement Program (CIP) 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 Plan and are managed by the Engineering Department. The proposed plan through FY 2026-27 contains $111.0 million in capital improvement/work projects over the next six years. Of the six-year total, $22.5 million is programmed for FY 2022-23. The proposed FY 2022-23 capital budget includes $6.9 million from the General Fund, with all other funds totaling $15.6 million. The Facilities Fund includes a total of $7.0 million in funding for the Pacific View Improvements project— consisting of a $0.5 million appropriation for design and construction support services in FY 2021-22 plus $6.5 million proposed for FY 2022-23. Funding of the CIP also anticipates approval of a $20 million loan from the California Infrastructure and Economic Development Bank (IBank) in FY 2021-22 to accommodate future phases of the Leucadia Streetscape project. As part of the budget adoption on June 23, 2021, Council approved $20 million in funding for Leucadia Streetscape - Future Phases for FY 2021-22, the same year the funds were projected to become available. 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. A list of current CIP Projects by Status is available on the City's website. $22,549,749.00 Description in 2023 Pacific View Improve... Annual Street Overla... Leucadia Streetscape... Other Santa Fe Drive Corri... Moonlight Beach Pump... CIP by Project Data Updated yesterday $22,549,749.00 Type in 2023 Facilities Streets and ... Other Mobility Imp... Parks and Be... Wastewater $22,549,749.00 Funding Source in 2023 403 - FACILI... 101 - GENERA... Other 201 - STATE ... 211 - TRANSN... 522 - ESD CA... City of Encinitas Website Operating Budget Home Powered by OpenGov CIP by Type CIP by Funding Source Completed Partially Funded Funded / Not Complete Unfunded PROJECT DESCRIPTION PROJ. NO. INCLUDES GRANT/ OTHER FUNDING STUDY/ INITIAL EVAL. DESIGN CONST.$ NEEDED 1 APPROVED TIERED PROJECTS a.Recreation Trails Development/Trail 95 - Camino Del Norte CP00F OTHER - b.Streetlight Conversion Project CS17H GRANT - c.El Camino Real - Z Crossing CS20G GRANT - d.Beach Staircase Access Refurbishment (Grandview)CP23A No - e.Leucadia Streetscape Future Phases (Segment C West: Jupiter - Moorgate)TBD OTHER - f.La Costa Stormwater Basin Rehab 2 CD22A No N/A - g.ADA Parking Lot Upgrades (Glen Park)CF18A No - h.Santa Fe Drive Corridor Improvements (West/HSIP Funded)CS19E GRANT 300,000 4 i.Leucadia Streetscape B & C Safety & Mobility CS22F No 1,200,000 4 j.Leucadia Blvd Roundabout at Hygeia (Roundabout Only) 3 CS18B OTHER 1,950,000 k.Santa Fe Drive Corridor Improvements (East/ATP Funded)CS19E GRANT 690,000 l.Birmingham Drive - Complete Streets CS17B No 9,900,000 m.Recreation Trails Development/Trail 82 - Rancho Santa Fe Road CP00F OTHER 4,500,000 n.Verdi Pedestrian Crossing CS16E No 18,000,000 o.Leucadia Blvd Streetscape Ped Improvements CS17E/ CS20H No 500,000 p.Leucadia Streetscape A South (A Street to Marcheta)TBD No 5,000,000 q.Leucadia 101 Drainage Design, Treatment & Construction TBD No 15,000,000 r.Citywide Rail Corridor Quiet Zone CS23B No > 11,000,000 s.Leucadia Vulcan Drainage Design, Treatment & Construction WD19E No > 30,000,000 t."Cross Connect" Implementation WC19D OTHER > 120,000,000 u.Beach Staircase Access Refurbishment (Swami's)CP23A No 500,000 v.Recreation Trails Development/Trail 79 - Manchester TBD No TBD OTHER ACTIVE PROJECTS aa.Pacific View Improvements CF20D No - bb.Olivenhain Trunk Sewer Improvements (Phase 1A)CC04J OTHER - cc.San Elijo Bridge Pavement Failure Repair CS22E No - dd.Left Turn Permissive Signals CS02G GRANT - ee.Citywide Leading Pedestrian Intervals CS22B GRANT - ff.Beacon's Beach Parking Lot CP22A No - gg.Olivenhain Trunk Sewer Improvements (Phase 2)CC04J OTHER - hh.Olivenhain Trunk Sewer Improvements (Phase 3)CC04J OTHER - ii.Collection System Rehabilitation (B Street Sewer Main and Manhole)CE04H OTHER - jj.Collection System Rehabilitation (Cottonwood Creek Sewer Manhole) CE04H OTHER - kk.Highway 101 Walkway to Solana Beach CS22D GRANT - ll.Beacon's Coastal Bluff Restoration Project CP22C GRANT - mm.Coast Highway 101 Separated Bike Lanes (South 101 Cycle Track (Chesterfield to K St.))CS22C GRANT 300,000 4 nn.Rancho Santa Fe Road Improvements (Cross Walks, Signing/Striping, Intersection Imp.) CS23C No 100,000 4 oo.Storm Drain Repair (Lake Drive Storm Drain Replacement) CD05E No 5,000,000 pp.Leucadia At-Grade Rail Crossings WC22A No TBD qq.Leucadia Blvd. / I-5 Bridge Rail Repair TBD No 500,000 rr.Rancho Santa Fe Roundabouts TBD No TBD ss.La Costa Avenue Improvements CS11C OTHER TBD ANNUAL PROJECTS Annual Budget General Mobility Improvements CS18E ADA Curb Ramp Project (Transition Plan Compliance) CS16C Storm Drain Repair CD05E Traffic Safety and Calming CS02F Innovative Bike Lanes CS18D Safe Routes to School CS01E Traffic Signal Modifications CS02G Annual Street Overlay CS22A 4. Amounts reflect staff recommendations for FY 2022-23. 3. The amount needed for the Leucadia Blvd. Roundabout assumes that $750,000 will be transferred to the Quiet Zone Implementation Project. 25,000 200,000 50,000 > 3,700,000 1. $ Needed does not include funding that was previously programmed to be included with the FY 2022-23 budget. 2. The La Costa Stormwater Basin Rehab project assumes that $600,000 will be transferred from the Cottonwood Creek Basin Project. 75,000 CIP - PROJECTS BY STATUS DRAFT - June 15, 2022 300,000 50,000 250,000