Budget FY2021-22 and FY2022-23 Operating and CIP - Budget in BriefCity of Encinitas
Budget-in-Brief
FY 2021-22 and FY 2022-23
City Council
Budget Transmittal Message
Honorable Mayor Blakespear and Members of the City Council:
It is my pleasure to present to you the Proposed Operating and Capital Improvement Budget for Fiscal Years 2021-22 and 2022-23 for your
consideration. Despite the unprecedented prior year of COVID-19 related lockdowns, restrictions and economic losses, I am proud to present a
budget that is balanced and provides the necessary resources to support the ongoing services the Encinitas community deserve and have come to
expect.
The estimated total Operating and Capital Improvement Budget for FY 2021-22 is $133.4 million. In FY 2022-23 the total is estimated to be $111.3
million and meets the Council’s long-standing vision:
Encinitas is ve unique communities thriving as ONE great city through pursuing our vision of:
QUALITY TRANSPORTATION - Provide e ective, safe, and easy transportation for all modes of movement and for all demographics.
RECREATION - Promote active lifestyles and community health by furthering access to trails, parks, beaches, and other recreational opportunities.
ECONOMIC DEVELOPMENT - Create economic opportunities through innovation, nancial stability, and scal responsibility.
ENVIRONMENT - Be good stewards of open spaces, beaches, parks, and the natural environment.
ARTS & CULTURE - Embrace great places to showcase the City’s arts and culture, history, community charm and character.
PUBLIC SAFETY - Create a safe and secure environment for residents, visitors, and businesses throughout the City.
COMMUNITY PLANNING - Maintain safe and livable communities through well-maintained infrastructure and facilities, strong public safety, and
signi cant environmental standards while achieving diverse and a ordable housing for present and future generations.
The Proposed Budget also ensures that the Council’s reserve policy is met. The contingency reserve at 20 percent of operating expenditures is fully
funded at $15.3 million. The budget stabilization reserve is fully funded at two percent of reserves or $1.7 million.
BUDGET PREPARATION
In preparation for the City’s annual budget, the City held two budget workshops on April 14, 2021 and May 3, 2021. During the workshops, sta
presented the six-year nancial forecast for the General Fund. The forecast showed at revenues as a result of the pandemic in the current scal
year FY 2020-21 and modest growth in future years from FY 2021-22 through FY 2026-27. As the hopeful signs for recovery continue, this Proposed
Two-Year Budget positions Encinitas well to respond quickly and adapt should more growth occur than forecasted from transient occupancy tax
(TOT) from the new Alila Marea Beach Resort Encinitas which opened in the spring, and the possibility of a Cannabis Tax to be considered in 2022.
However, should the modest growth trend continue, the City's long-term scal health must be addressed through more sustainable approaches to
address the community's service and, more concerning due to aging and increasing costs to repair, the City’s capital improvement plan (CIP)
priorities into the future. Given the forecast of modest growth in revenues, Council requested the establishment of a Blue-Ribbon Task Force on
Infrastructure to study the City’s aging infrastructure and funding opportunities in the future at the second budget workshop.
BUDGET PRIORITIES
This year, we are recommending funding three new full-time positions to better address the changing needs of the community including a Housing
Services Manager; Senior Planner – Mobility; and an additional Utility & Maintenance Worker. The Proposed Budget also includes increased hours
for two part-time Program Assistants in Development Services to support engineering services; and one part-time Program Assistant in Parks,
Recreation and Cultural Arts to support Community Center operations and enhance Center programs; and two part-time information technology
network (1) and multi-media (1) analysts who will support both technology and communications e orts in the City.
The City Council’s budget priorities are re ected in the Proposed 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. To that end, the budget
includes continued annual funding for the following CIP categories:
•Innovative bike lanes
•Safe routes to schools
•Tra c safety and calming
•General mobility
•Storm drain repair
•Park improvements
•Technology
The City has also made a signi cant commitment to funding CIP and other major work projects with General Fund, gas tax, and other monies. The
following projects are proposed for funding in the Proposed Budget over the next two scal years. In addition, at the Budget Workshop on May
3rd, the City Council identi ed the future phases of the Leucadia Streetscape project as a priority project and was presented with the option to
nance this project through the California Infrastructure and Economic Development Bank (IBank) for an amount no higher than $20 million over
15 years, so it is also added below.
•Leucadia Streetscape Project
•Santa Fe Drive Corridor Improvements
•Highway 101 Walkway to Solana Beach
•Coast Highway 101 Separated Bike Lanes
•Beach Staircase Access Refurbishments
•Beacon’s Beach Parking Lot
•Cottonwood Creek Basin Maintenance
•Recreation Trails Development/El Camino Del Norte, Trail 95
•Recreation Trails nish Design/Trail 82
•San Elijo Bridge Pavement Failure Repair
•ADA Parking Lot Upgrades (Glen Park)
•Rail Safety Study for At-Grade Crossings
•Housing Element Update
•Climate Action Plan Mitigation Measures
•Municipal Code Cleanup
•Sixth Cycle Housing Element Implementation
This is just a snapshot of some of the major initiatives in the Proposed Budget. More budget detail may be found in the new budget transparency
tool on the City’s Website. I am proud that the Finance Department sta was able to pivot to this online budget portal that will provide up-to-date
nancial information month to month and make the budget a living document versus a book that is outdated the moment it is printed.
CONCLUSION
Thank you to the Mayor and City Council for your leadership and our entire City sta for providing outstanding service to the Encinitas community.
The resiliency and “can do” attitude of this team have helped the community to overcome the pandemic in so many ways and has prepared us for
any challenges in the future.
A budget document takes many hours of collaboration and teamwork. I would like to o er special thanks to our Finance Director Teresa
McBroome, Assistant Finance Director Tom Gallup, Finance Managers Monica Attili and Kelly Sanderson, our nance consultant Karen Lancaster
from the Woodhill Group, and the dedicated department budget coordinators for their hard work and leadership to complete the budget
documents. Special thanks to IT sta who pivoted once again to quickly implement the new online Budget Platform including Neil O’Connor, Jason
York, and James Crandall. I am also grateful to our 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
City of Encinitas
Fast Facts
Services Provided by Department
General Government
City Attorney (contract): legal counsel for City and San Dieguito Water District
City Clerk: legislative process coordination (agendas, minutes, public notices), election administration, records management, commission
recruitment, public records requests
City Manager’s O ce: City Council agenda planning, Citywide policy and procedure development, regional government coordination,
economic development, legislative tracking, public relations, citizen assistance, law enforcement contract administration, resource allocations
and special projects management. Divisions include CMO administration, human resources, information technology, and risk management
City Council: establish public policies with advisory support from Council-appointed Commissions
Finance: accounts payable, accounts receivable, budgeting, cash management, investments, nancial reporting, general accounting, payroll,
procurement
Non-Departmental: debt service and transfers out to other funds primarily to fund capital project costs
Development Services
Engineering: planning, design, and construction administration for capital improvement projects; inspections, tra c engineering, and
encroachment permits
Planning: advanced planning, plan check and building permits, code enforcement, housing resources, land development, and regulatory
permits such as business registration and short-term rental permits
Parks, Recreation, and Cultural Arts
Maintenance of parks, beaches, recreational trails, and streetscapes; recreation programs and activities for all ages, citywide special events,
facility rentals, animal control service, and oversight of the administration of the Encinitas Ranch Golf Authority
Public Safety
Fire: re protection, emergency response, medical aid, re prevention, disaster preparedness, search and rescue, lifeguard services, and
community education programs
Law Enforcement (contract): sheri , emergency response, vehicle code enforcement
Public Works
Maintenance of streets, streetlighting, street sweeping, facilities, vehicles and equipment, public trees, medians and stormwater and
wastewater systems, solid waste/recycling contract, clean water program
Budgeted Revenue and Expenditures FY 2021-22 and FY 2022-23
$113,456,953.00
Revenues in 2023
$0
$20M
$40M
$60M
$80M
$100M
$120M
2022 2023
$99,110,790.00
Expenses in 2023
$0
$20M
$40M
$60M
$80M
$100M
2022 2023
Revenues by Type - All Funds
Governmental Funds, CSD and ESD (Excludes Transfers In)
Expenditures by Type - All Funds
Governmental Funds, CSD and ESD (Excludes Transfers Out and CIP in Capital Outlay)
$89,582,497.00
Revenues in 2023
$0
$20M
$40M
$60M
$80M
$100M
2022 2023
$78,672,660.00
Expenses in 2023
$0
$20M
$40M
$60M
$80M
2022 2023
Revenues by Type - General Fund
(Excludes Transfers In)
Expenditures by Type - General Fund
(Excludes Transfers Out and CIP)
Capital Improvement Plan
$35,482,702.00
Funding Source in 2022
Other Financ...
Other
Transnet
ESD
State Capita...
General Fund
$12,206,353.00
Funding Source in 2023
General Fund
ESD
Other
CSD
Gas Tax RMRA
Transnet
CIP by Funding Source FY 2021-22
CIP by Funding Source FY 2022-23
Streets and Rail Corridor -Improvements
Parks and Beaches
Mobility
Public Facilities Maintenance
Drainage and Emergency Repairs
Technology
Wastewater
Consultant Studies
Capital Improvement Projects Six Year Plan
FY 2021-22 to FY 2026-27
$9,890,340.00
Project Type in FY2027
$0
$5M
$10M
$15M
$20M
$25M
$30M
$35M
$40M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
Capital
Improvement
Six Year
Plan by
Project
Type
Data Updated Jun
08, 2021, 12:15 PM
Outstanding Debt Obligations
$70,711,520.00
Debt in 2022
$0
$10M
$20M
$30M
$40M
$50M
$60M
$70M
$80M
2012 2014 2016 2018 2020 2022
Debt by
Fiscal Year
Data Updated Jun
05, 2021, 9:01 AM
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