The Developer has since been working to satisfy all conditions of the above-cited entitlements and complete processing of building permits in anticipation of commencing construction of the project. A condition of approval required the Developer to enter into a Regulatory Agreement with the City to secure the construction of the affordable units that are part of the project.
DISCUSSION/ANALYSIS:
Pursuant to Del Mar Municipal Code (DMMC) Chapter 30.90, an Applicant seeking a Density Bonus for a housing development shall enter into a Regulatory Agreement with the City to ensure the continued affordability of the affordable units pursuant to State Density Bonus Law. The Regulatory Agreement must be executed and recorded by the Applicant as a deed restriction against the project property to run with the land and be binding on all future owners and successors in interest of the property prior to issuance of building permits.
The Regulatory Agreement (Attachment B) was drafted by special counsel to the City, Goldfarb & Lipman, LLP, who have an expertise in affordable housing. A summary of the document’s provisions include:
• The restricted (affordable) units will be deed restricted commencing from the time of initial certification for occupancy for a 55-year period and requires the Developer to make the affordable rental units available for occupancy and rented to income qualified households;
• Consistent with DMMC Section 24.21.030 and State Density Bonus Law, of the ten (10) restricted units to be provided, six (6) units are designated affordable in the "low" income category, two (2) units in the "very low" income category, and two (2) units in the "extremely low" income category;
• Restricted units will be reasonably dispersed throughout the Development (see Exhibit B of the Regulatory Agreement);
• Restricted units are required to be proportional in terms of the number and size of bedrooms to the market-rate units in the residential development and comparable in terms of size, design, materials, finished quality, and appearance, to the market-rate units in the Development;
• Restrictions against rental to persons or entities affiliated with the Developer, the property, or future property owners;
• Requirements for compliance with Fair Housing and Tenant Protection laws; • Prohibition against Short Term Rentals;
2 March 3, 2026 Item 9
City Council Agenda Report
Watermark Del Mar Housing Agreement
March 3, 2026
• Household size limitations;
• Affordable rents and limitations on additional fees that can be charged to occupants of restricted and market-rate units;
• Provisions for the marketing and operations of the restricted units; • Nondiscrimination provisions;
• Procedures for obtaining and certifying qualifying household income information; • Requirements for annual income certification reporting to the City; and • Property Management and Maintenance responsibilities
FISCAL IMPACT:
There is no fiscal impact or action to be taken by the City Council related to this agenda item.
ENVIRONMENTAL STATUS:
The approval of the Regulatory Agreement does not qualify as the approval of a "project” subject to the California Environmental Quality Act (CEQA) because it will result in no physical effect on the environment, and is, therefore, exempt from CEQA. (Pub. Res. Code § 21065, CEQA Guidelines §§ 15060(c)(2),(3); 15378(a)).
ATTACHMENTS:
Attachment A – Resolution Authorizing the City Manager to Execute the Affordable Housing Regulatory Agreement
Exhibit A to Attachment A- Affordable Housing Regulatory Agreement 3 March 3, 2026 Item 9
ATTACHMENT A
RESOLUTION NO. 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL
MAR, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO
EXECUTE AN AFFORDABLE HOUSING REGULATORY
AGREEMENT WITH WATERMARK DM L.P., AN ARIZONA
LIMITED PARTNERSHIP, FOR THE WATERMARK DEL MAR
MULTI-UNIT HOUSING DEVELOPMENT AT 2250 SAN
DIEGUITO DRIVE (APN: 299-100-51-00)
WHEREAS, Watermark DM, L.P., an Arizona limited partnership (“Developer”) is the owner of vacant real property located at 2250 San Dieguito Drive (“Property”); and WHEREAS, the Developer filed a verified application for Coastal Development Permit CDP21-005 and Boundary Adjustment BA22-001 for the construction of fifty (50) multi-unit residential “by-right” development with an affordability component of ten (10) income restricted units, associated garage, parking structures, and associated grading, landscaping and site improvements on a consolidated legal lot located in the Coastal Commission Appeals area (‘Project”); and
WHEREAS, the project as proposed required and was granted approval of Density Bonus concessions and waivers in order to achieve 20-25 dwelling units per acre and inclusionary housing on the Property as required by the City of Del Mar 5th Cycle Housing Element Program 2G; and
WHEREAS, on April 19, 2022, Coastal Development Permit CDP21-005 and Boundary Adjustment BA22-001 were approved with conditions by the Director of Planning and Community Development, and the approval of CDP21-005 was subsequently appealed to the California Coastal Commission; and WHEREAS, on November 17, 2023, the California Coastal Commission determined that no substantial issue existed with respect to the grounds on which the appeal had been filed, and thus upheld the City of Del Mar’s approval of CDP21-005; and WHEREAS, Del Mar Municipal Code (DMMC) Chapter 30.90 requires that the Developer and the City enter into an affordable housing regulatory agreement (Regulatory Agreement’) to ensure the continued affordability of the Development’s ten (10) restricted units pursuant to State Density Bonus Law and to comply with the requirements of the City's Affordable Housing Ordinance (Chapter 24.21 of the Del Mar Municipal Code); and WHEREAS, approval of the Regulatory Agreement does not qualify as the approval of a "project” subject to the California Environmental Quality Act (CEQA) because it will result in no direct physical effect on the environment, and is, therefore, exempt from CEQA. (Pub. Res. Code § 21065, CEQA Guidelines §§ 15060(c)(2),(3); 15378(a)).
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Del Mar, California hereby authorizes the City Manager to execute the Regulatory Agreement with Watermark DM, L.P., an Arizona limited partnership substantially in the form presented to the City Council and attached to this resolution as Exhibit A. 4 March 3, 2026 Item 9
Resolution No. 2026-XX
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Del Mar, California, at the Regular Meeting held this 3
rd day of March, 2026.
_____________________________________
Tracy Martinez, Mayor
City of Del Mar
APPROVED AS TO FORM:
________________________________
Christina Cameron, City Attorney
City of Del Mar
ATTEST AND CERTIFICATION:
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF DEL MAR
I, SARAH KRIETOR, Administrative Services Manager/City Clerk of the City of Del Mar, California, DO HEREBY CERTIFY, that the foregoing is a true and correct copy of Resolution No. 2026-XX, adopted by the City Council of the City of Del Mar, California, at a Regular Meeting held the 2nd day of April, 2026, by the following vote:
AYES:
NOES:
RECUSE:
ABSENT:
ABSTAIN:
Sarah Krietor, Administrative Services
Manager/City Clerk
City of Del Mar
5 March 3, 2026 Item 9
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Del Mar
City Clerk's Office
1050 Camino Del Mar
Del Mar, CA 92014
THE AREA ABOVE IS RESERVED FOR RECORDER'S USE
Regulatory Agreement and Declaration of Restrictive Covenants This Regulatory Agreement is recorded at the
request and for the benefit of the City of Del
Mar and is exempt from the payment of a
recording fee pursuant to Government Code
Sections 27383.
APN Nos. 299-100-51-00
This Regulatory Agreement and Declaration of Restrictive Covenants ("Agreement") is between Watermark DM, L.P., an Arizona limited partnership ("Property Owner") and the City of Del Mar, a municipal corporation ("City").
RECITALS
A. Property Owner owns certain real property located at 2250 San Dieguito Drive, in the City of Del Mar, County of San Diego, California consisting of approximately 2.37 acres, or 103,282 square-feet of area (APN 299-100-51-00), and more specifically described in Exhibit A, attached hereto and incorporated herein by this reference ("Property").
B. On April 19, 2022, the City Director of Planning and Community Development rendered its Decision on Administrative Coastal Development Permit CDP21-005 ("CDP") approving the Property Owner to construct a new 50-unit, 132,894 square-foot residential development with 10 units of deed restricted affordable housing.
C. The CDP requires, consistent with Del Mar Municipal Code Section 24.21.030 and State Density Bonus Law, that of the ten (10) affordable units to be provided, six (6) units are to be designated affordable in the "low" income category, two (2) units in the "very low" income category, and two (2) units in the "extremely low" income category (collectively the "Restricted Units").
D. The Property Owner and City pursuant to Del Mar Municipal Code section 24.21.050 desire to enter into this Agreement to set forth their agreement regarding the affordable housing Exhibit A to City of Del Mar City Council Resolution No. 2026-XX 6 March 3, 2026 Item 9
restrictions with respect to the residential units and to cause the affordable housing restrictions to run with the land during the Qualified Project Period, as herein defined.
E. Pursuant to the City's Affordable Housing Ordinance (Chapter 24.21 of the Del Mar Municipal Code) and Density Bonus Ordinance (Chapter 30.90 of the Del Mar Municipal Code) and the State Density Bonus Law (Chapter 4.3 of Division 1 of Title 7 of the State Government Code), the City is requiring the Property Owner to enter into this Agreement, which shall be recorded against the Property to implement the CDP requirements with regard to the Development and to ensure that the Property will be used for the purpose approved by the City and that the Development will be maintained and operated in accordance with the City's conditions and restrictions concerning affordability, operation and maintenance.
NOW, THEREFORE, the Property Owner and City hereby agree as follows:
ARTICLE 1.
DEFINITIONS
Section 1.1 Definitions. Unless otherwise defined herein, capitalized terms used in this Agreement shall have the respective meanings assigned to them in this Section 1.1:
(a) "Actual Household Size" means the actual number of persons in the applicable household, which shall be used to determine income eligibility. (b) "Additional Fees" means fees charged by Owner to Residents for amenities and specifically excluded from Rent, including but not limited to: pet rent and deposits (subject to all accessibility and fair housing laws), clubhouse or common area exclusive temporary rental fees, Wi-Fi service fees, cable television services, telephone services, non-bicycle storage lockers, use of electrical vehicle charging stations, secured/enclosed parking garages, other than parking spaces that must be provided free of charge as required under Municipal Code Section 30.80.020.D, and package management services.
(c) "Adjusted Income" means the anticipated annual income of all persons who intend to reside in one residential Unit, calculated in the manner consistent with determinations of household income for low-income families by the California Department of Housing and Community Development, as calculated in accordance with 25 California Code of Regulations Section 6914. In the event that no such program exists, the City shall provide the Owner with a reasonably similar method of calculation of adjusted income as provided in said Section 6914. (d) "Extremely Low Income Household" means an individual or household whose gross income is 30% or less of the Median Income for the Area, adjusted for household size computed pursuant to California Health and Safety Code sections 50079.5 and 50053, as may be amended, as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937, and as published by HCD.
(e) "Extremely Low Income Rent" means the rent permitted to be charged for an Extremely Low Income Unit pursuant to Section 2.2(a) below. 7 March 3, 2026 Item 9
(f) "Extremely Low Income Unit" means the Units, which, pursuant to Section
2.1(a) below, are required to be occupied by Extremely Low Income Households. (g) "HCD" means the State of California Department of Housing and Community Development.
(h) "Household Income" is the combined gross, pre-tax income of all adult occupants of the applicant household, as calculated using the guidelines provided 25 California Code of Regulations Section 6914.
(i) "Low Income Household" means an individual or household whose gross income is 80% or less of the Median Income for the Area, adjusted for household size computed pursuant to California Health and Safety Code sections 50079.5 and 50053, as may be amended, as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937, and as published by HCD.
(j) "Low Income Rent" means the maximum allowable rent for a Low Income Unit pursuant to Section 2.2(c) below.
(k) "Low Income Units" means the Units, which, pursuant to Section 2.1(c) below, are required to be occupied by Low Income Households. (l) "Median Income for the Area" means the gross yearly median income for San Diego County adjusted for household size as most recently published by the California Department of Housing and Community Development. In the event that such income determinations are no longer published, or are not updated for a period of at least eighteen (18) months, City shall provide the Property Owner with other income determinations which are reasonably similar with respect to methods of calculation to those previously published by the State.
(m) "Parties" means City and Property Owner.
(n) "Project" or "Development" means collectively the Property and the structures and related buildings, and other improvements located on the Property from time to time together with all fixtures and other property owned by the Property Owner and located on, or used in connection with, such buildings, structures, and other improvements. (o) "Property" means the real property legally described in Exhibit A which is attached hereto and by this reference incorporated herein. (p) "Qualified Project Period" or "Term" means the period beginning upon the certification of occupancy of the Restricted Units and ending on the date which is fifty-five (55) years after the beginning of the Qualified Project Period. (q) "Qualified Household" means the individuals occupying the Restricted Units with Adjusted Income meeting the maximum qualifying income level, adjusted for Actual Household Size appropriate for the unit to be rented.
8 March 3, 2026 Item 9
(r) "Regulatory Agreement" or "Agreement" means this Regulatory Agreement.
(s) "Rent" means the total of monthly payments by the Residents of a Restricted Unit for the following: (1) use and occupancy of the Restricted Unit and land and associated facilities, including but not limited to parking (which must be provided free of charge as required under Municipal Code Section 30.80.020.D, and other than for secured/enclosed parking garages spaces, must be of similar quality and equitable distribution by parking typology, subject to review and approval of a parking plan), bicycle storage (required under Municipal Code Section
30.80.030.C(4)(c)(iv)), and use of all common areas of the Development; (2) any separately charged fees or service charges assessed by Property Owner, which are required of all residents, other than security deposits and allowable Additional Fees; (3) an allowance for the cost of an adequate level of service for utilities paid by the Resident, including garbage collection, sewer, water, electricity, gas and other heating, cooking and refrigeration fuel, consistent with the most updated and effective San Diego Housing Commission Allowance for Tenant-Furnished Utilities and other Services; and (4) any other interest, taxes, fees or charges for use of the land or associated facilities and assessed by a public or private entity other than Property Owner, and paid by the Residents not exceeding the "affordable rent" as defined in Health and Safety Code Section 50053(b)(1)(D) for Low Income Households, Section 50053(b)(1)(C) for Very Low Income Households, and Section 50053(b)(1)(B) for Extremely Low Income Households, adjusted for household size appropriate for the unit.
(t) "Resident" means a tenant or other person who lawfully occupies a Restricted Unit.
(u) "Restricted Unit" or "Restricted Units" means the affordable units identified in the attached Exhibit B, incorporated herein by this reference, required to be rented to Qualified Households pursuant to the terms, covenants, and conditions of this Agreement. (v) "Very Low Income Household" means an individual or household whose gross income is 50% or less of the Median Income for the Area, adjusted for household size computed pursuant to California Health and Safety Code sections 50079.5 and 50053, as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937, and as published by HCD.
(w) "Very Low Income Rent" means the rent permitted to be charged for a Very Low Income Unit pursuant to Section 2.2(b) below.
(x) "Very Low Income Units" means the Units, which, pursuant to Section
2.1(b) below, are required to be occupied by Very Low Income Households.
ARTICLE 2.
AFFORDABILITY COVENANTS
Section 2.1 Occupancy Requirements. Property Owner shall ensure there are always ten (10) Restricted Units available and shall only rent Restricted Units to Qualified Households. The Units shall be occupied by Residents meeting the following income requirements:
9 March 3, 2026 Item 9
(a) Extremely Low Income Units. Two (2) Units, including one (1) studio and one (1) one-bedroom Unit, which shall be rented to and occupied by or, if vacant, available for occupancy by Extremely Low Income Households.
(b) Very Low Income Units. Two (2) Units, including one (1) one-bedroom Unit and one (1) two-bedroom Unit, which shall be rented to and occupied by or, if vacant, available for occupancy by Very Low Income Households.
(c) Low Income Units. Six (6) Units, including one (1) one-bedroom Unit, three (3) two-bedroom Units, and two (2) three-bedroom Units which shall be rented to and occupied by or, if vacant, available for occupancy by Low Income Households. (d) Manager's Unit. The Property Owner shall at all times be responsible for continuing to meet State onsite manager unit requirements under 25 CCR Section 42. One (1) of the Restricted Units may be made available for designation as the manager's unit so long as the Property Owner ensures the manager meets income eligibility requirements and the lease for such Restricted Unit includes a provision that states that employment as the resident manager is not a condition of the tenancy and that the resident manager cannot be evicted from such Restricted Unit as a result of termination of employment. Furthermore, Property Owner agrees and acknowledges that if the onsite manager housed in a Restricted Unit is terminated from employment, the Property Owner must designate an alternative unit for a new resident onsite manager, which is not guaranteed to be one of the Restricted Units.
(e) Restriction on Rental to Affiliated Households. Except consistent with subsection (d), above, Property Owner shall not rent any Restricted Unit to Property Owner or any relative (by blood or marriage) of Property Owner or any person employed by Property Owner or of any individuals who are members, principals, executives, directors, partners, agents, or shareholders of Property Owner or in any entity having an ownership interest in Property Owner or in the Property, or to any pre-determined household. A "pre-determined household" is any household with a pre-existing relationship with Property Owner, such as a friend, associate, or any other household that has an existing relationship with Property Owner, or whose occupancy of the Restricted Unit would decrease its availability to the general public as intended by State of California housing law.
(f) Fair Housing. The Development shall be operated at all times in compliance with the provisions of: (1) the Unruh Act; (2) the California Fair Employment and Housing Act, (3) Section 504 of the Rehabilitation Act of 1973; (4) the United States Fair Housing Act, as amended, and (5) any other applicable law or regulation (including the Americans With Disabilities Act, to the extent applicable to the Development). Property Owner agrees to indemnify, protect, hold harmless and defend (by counsel reasonably satisfactory to the City) the City, and its council members, agents, officers and employees, from all suits, actions, claims, causes of action, costs, demands, judgments and liens arising out of Property Owner's failure to comply with applicable legal requirements related to housing for persons with disabilities. The provisions of this subsection shall survive expiration of the Term or other termination of this Agreement, and shall remain in full force and effect.
10 March 3, 2026 Item 9
(g) Appearance and Maintenance of Restricted Units. The design, square footage, exterior appearance, and general quality of the Restricted Units shall be of good quality, compatible with those of the market rate units in the Development and consistent with the designs provided for the Project Approvals in compliance with Municipal Code Section 30.90.100. Interior Finishes and features of the Restricted Units may differ from those provided in the Market-Rate units, but shall be durable, of good quality, and consistent with functioning kitchen and bathrooms and other contemporary standards for new housing so long as the workmanship and products are not substandard or inferior in quality. Without limiting the forgoing, the Restricted Units shall include the following appliances and fixtures: refrigerator, washer, dryer, stove, microwave, and water heater. Owner shall allocate and assign parking spaces, bicycle storage, storage lockers, and other common area spaces reserved for use by individual Units to the Restricted Units on the same basis as for the Market Rate Units, and Residents of the Restricted Units shall have equal access to the Project's common areas as is given to the residents of the Market Rate Units. Other than Additional Fees, any fee charged for use of non-exclusive common areas or for spaces reserved for individual Units shall be included in the Resident's Rent. (h) Owner shall provide Restricted Units disbursed throughout the Project in the location(s) shown on the Site Map attached hereto as Exhibit B, incorporated herein by this reference.
(i) All Restricted Units shall be protected under the California Tenant Protection Act of 2019 (AB 1482, commencing at Civil Code 1946.2).
Section 2.2 Allowable Rents. The Rent for each Restricted Unit shall be determined based upon income limits that do not exceed those applicable to San Diego County as published annually by the Department of Housing and Community Development under Title 25 of the California Code of Regulations, Section 6932 (or successor provision), adjusted for Assumed Household Size.
(a) Extremely Low Income Rent. Subject to Section 2.3 below, the monthly Rent charged to Residents of the Extremely Low Income Units shall not exceed one-twelfth (1/12th) of thirty percent (30%) of thirty percent (30%) of the Median Income for the Area, adjusted for Assumed Household Size.
(b) Very Low Income Rent. Subject to Section 2.3 below, the monthly Rent charged to Residents of the Very Low Income Units shall not exceed one-twelfth (1/12th) of thirty percent (30%) of fifty percent (50%) of Median Income for the Area, adjusted for Assumed Household Size.
(c) Low Income Rent. Subject to Section 2.3 below, the monthly Rent charged to Residents of the Low Income Units shall not exceed one-twelfth (1/12th) of thirty percent (30%) of sixty percent (60%) of Median Income for the Area, adjusted Assumed Household Size. (d) Assumed Household Size. Occupancy of the Restricted Units shall be appropriate to the number of bedrooms in the Restricted Unit. As a general rule and policy, an appropriately sized household is no less than one person per bedroom, unless a reasonable accommodation must be made under federal or state fair housing laws in conformance with HUD 11 March 3, 2026 Item 9
guidelines set forth in FR Doc. 98–33568, published on December 18, 1998 at 63 FR 70256–70257 --Fair Housing Enforcement— Occupancy Standards; Notice of Statement of Policy. In calculating the allowable Rent for the Units, the following "Assumed Household Sizes" shall be determined pursuant to the terms of Health and Safety Code Section 50052.5(h):
Number of Bedrooms Assumed Household Size
Studio 1
One 2
Two 3
Three 4
(e) The initial rent for the Restricted Unit shall be approved by the City prior to occupancy based on the HCD published allowable rents. All Rent increases shall also be subject to approval by the City. The City shall provide the Property Owner with a schedule of permissible maximum Extremely Low Income Rents, Very Low Income Rents, and Low Income Rents for the succeeding year. Under no circumstance may Property Owner raise rents above the permissible maximum rents as allowed under the annual rent schedule published by HCD. (f) No Additional Fees. The Owner must at all times comply with Municipal Code Section 24.21.060(A)(4), which requires the Owner to provide the Residents of Restricted Units be permitted the same access to common entrances, common areas, parking, amenities, and recreational facilities as the occupants of the market-rate units in the development. Other than Additional Fees, the Owner shall not charge any fee, other than Rent, and pet deposit associated with reasonable accommodation requests, cleaning fees and repayment plan servicing fees, to the Resident of the Restricted Rental Units for any housing or other services or costs provided by the Owner or any other third party. In addition, if Owner charges any fees or requires Residents to procure any insurance, the cost of such fees or insurance must be deducted from the amount charged as the affordable Rent for the applicable Restricted Unit. Nothing herein shall prevent Owner from establishing charges for defaults by Residents, so long as such fees are not prohibited under by any applicable state or federal laws.
Section 2.3 Increased Income of Residents.
(a) Change of Income for Extremely Low Income Household. If, upon recertification of a Resident's income, the Property Owner determines that a former Extremely Low Income Household's Adjusted Income has increased and exceeds the qualifying income for an Extremely Low Income Household, but does not exceed the qualifying limit for a Very Low Income Household, or Low Income Household, then, upon expiration of the Resident's lease:
(1) Such Resident's Unit may be considered a Very Low Income Unit, Low Income Unit, as applicable;
(2) Such Resident's Rent may be increased to a Very Low Income Rent, a Low Income Rent, as applicable, upon sixty (60) days written notice to the Resident and subject to the requirements under Civil Code Section 1947.12; and 12 March 3, 2026 Item 9
(3) The Property Owner shall rent the next available comparable Unit to an Extremely Low Income Household at an Extremely Low Income Rent to meet the requirements of Section 2.1.
(b) Change in Income for Very Low Income Household. If, upon recertification of a Resident's income, the Property Owner determines that a former Very Low Income Household's Adjusted Income has increased and exceeds the qualifying income for a Very Low Income Household, but does not exceed the qualifying limit for a Low Income Household, then, upon expiration of the Resident's lease:
(1) Such Resident's Unit may be considered a Low Income Unit; (2) Such Resident's Rent may be increased to a Low Income Rent, upon sixty (60) days written notice to the Resident and subject to the requirements under Civil Code Section 1947.12; and
(3) The Property Owner shall rent the next available comparable LowIncome Unit to a Very Low Income Household at a Very Low Income Rent to meet the requirements of Section 2.1.
(c) Change in Income to Non-Qualifying Household. If, upon recertification of the income of a Resident, the Property Owner determines that a former Extremely Low Income Household, Very Low Income Household, or Low Income Household has an Adjusted Income exceeding the maximum qualifying income for a Low Income Household, such Resident shall be permitted to continue occupying the Unit and upon expiration of the Resident's lease and upon sixty (60) days written notice and subject to the requirements under Civil Code Section 1947.12, the Resident may continue to reside in the Unit and the Rent may be increased to the lesser of onetwelfth (1/12th) of thirty percent (30%) of actual Adjusted Income of the Resident, or fair market rent and the Property Owner shall rent the next available comparable Restricted Unit to an Extremely Low Income Household, Very Low Income Household, or Low Income Household to meet the requirements of Section 2.1 above.
(d) Termination of Occupancy. Upon termination of occupancy of a Restricted Unit by a Resident, such Unit shall be deemed to be continuously occupied by a household of the same income level (e.g., Extremely Low Income Household, Very Low Income Household, or Low Income Household) as the income level of the vacating Resident, until such Unit is reoccupied, at which time the income character of the Restricted Unit (e.g., Extremely Low Income Unit, Very Low Income Unit, or Low Income) shall be redetermined. In any event, Property Owner shall maintain the occupancy requirements set forth in Section 2.1 above.
Section 2.4 Restriction on Use. During the term of this Agreement, the Property and the Restricted Units shall be utilized for residential use only in accordance with applicable local ordinances and regulations; any commercial use or transient habitation (of less than thirty days) is specifically prohibited. All Residents of Restricted Units must occupy the Restricted Unit as their primary and sole residence. The Development shall be subject to all applicable City ordinances. 13 March 3, 2026 Item 9
Section 2.5 Marketing Units.
(a) The Property Owner shall market the Restricted Unit to eligible households at rents required by Section 2.2, in compliance with the marketing and management plans reasonably approved in advance by the City and consistent with this Agreement and the City's Affordable Housing Ordinance and Density Bonus Law.
(b) Marketing Plan for Restricted Units. Within 90 days of commencement of Development construction, the Property Owner shall prepare and submit for City approval an initial marketing plan for the Restricted Units. The marketing plan must include, among other items, descriptions of how the availability of the Restricted Units shall be advertised, how applications shall be accepted, the amount of fees to be charged under Civil Code Section 1950.6, and applicants ranked and qualified, a draft application form, procedures for complying with fair housing laws, and a tentative timeline including an application deadline and milestones for tenant selection. The marketing plan will include procedures to affirmatively market the Restricted Units in a manner that will further fair housing. The marketing plan will provide for and the Property Owner will market the rental of the Restricted Units in languages other than English as recommended by City. The Property Owner, at a minimum, shall provide marketing in Spanish, or in the languages other than English deemed necessary to effectively communicate with community members from target populations with limited English proficiency, as such may be amended from time to time. The earlier of (1) one hundred twenty (120) days prior to completion of construction; or (2) sixty (60) days prior to marketing the Units in the Development, the Property Owner shall provide any necessary updates to the marketing plan. The marketing plan shall require that the Property Owner or its designee shall advertise the availability of the Restricted Units for a minimum of two consecutive weeks. Property Owner may employ marketing methods in accordance with industry standards and ensure that advertising includes news or media outlets that are of general circulation to the residents of the County of San Diego and City of Del Mar. Property Owner acknowledges and agrees the City may also advertise the Restricted Units and provide contact information to interested households. Property Owner shall not begin the selection process until after the two-week advertising period has ended. Property Owner or its designee shall maintain a record of all interested households and applications, and shall provide such documentation to City upon request. Property Owner will immediately inform City of any disqualification protest concerning a potential tenant's eligibility. (c) To the extent permitted and required by applicable law including fair housing laws, and unless prohibited by the regulations of HCD or HUD, Property Owner shall grant a preference in rental of the Restricted Units to otherwise Qualified Households: (1) displaced by activity of the City or a City affiliated entity, the City's code enforcement activities, or as provided in Health and Safety Code Section 33411.3. The preferences set forth in the immediately preceding sentence are required by law.
(d) Should City refer such a Qualified Household(s) to Property Owner, Property Owner shall rent the next available Restricted Unit to the Qualified Household(s) irrespective of waiting lists if the household is otherwise eligible for occupancy in the Restricted Unit. The preferences stated in this section apply to the rentals of Restricted Units in the Development throughout the Term.
14 March 3, 2026 Item 9
Section 2.6 Nondiscrimination Covenant.
(a) Property Owner shall comply with all applicable State, Federal and local laws, including but not limited to the Americans with Disabilities Act, Fair Housing Act and California Fair Employment and Housing Act and shall not discriminate against any prospective tenant on the basis of race, color, religion, sex, national origin, familial status, disability, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, veteran or military status, or genetic information of that person or any other status protected under State and Federal fair housing laws. (b) All of the Restricted Units shall be available for occupancy on a continuous basis to members of the general public who are income eligible. Property Owner shall not give preference to any particular class or group of persons in renting the Restricted Units, except to the extent that the Units are required to be leased to Extremely Low Income Households, Very Low Income Households, or Low Income Households. All deeds, leases or contracts made or entered into by Property Owner, its successors or assigns, as to any portion of the Property or the Improvements shall contain the following language:
(c) The Property Owner shall not discriminate against any applicants for tenancy on the basis of source of income or rent payment (for example, without limitation, Temporary Assistance for Needy Families (TANF) or Section 8), and the Property Owner shall consider a prospective Resident's previous rent history of at least one (1) year, or such other time period the Property Owner deems reasonable, as evidence of the prospective Resident's ability to pay the applicable Rent. Notwithstanding the foregoing, evidence of the prospective Resident's ability to pay the applicable Rent shall be deemed to have been demonstrated if the prospective Resident can document that the prospective Resident's gross income is at least two (2) times the prospective rent. The Property Owner, in the reasonable exercise of its discretion, may waive the requirement that the prospective Resident's gross income equal at least two (2) times the prospective rent, and admit prospective Residents with lower gross incomes. (d) The provisions of this Section shall run with the land and, to the extent reflective of applicable law beyond the Qualified Project Period, survive termination of this Agreement.
Section 2.7 Lease Provisions. The Property Owner shall include in leases for all Units provisions which authorize the Property Owner to immediately terminate the tenancy of any household one or more of whose members misrepresented any fact material to the household's qualification as an Extremely Low Income Household, Very Low Income Household, or Low Income Household, as applicable. Each lease or rental agreement shall also provide that the household is subject to annual certification in accordance with Section 3.1 below, and that, if the household's income increases above the applicable limits for an Extremely Low Income Household, Very Low Income Household, or Low Income Household, as applicable, such household's Rent may be subject to increase.
Section 2.8 Condominium Conversions. The conversion of a unit to condominium ownership shall require City Council approval of a Tentative Subdivision Map conditioned to ensure that: (a) the Restricted Units remain income restricted; (b) existing Residents are not 15 March 3, 2026 Item 9
displaced during the course of their lease or rental agreement; and (c) that such Residents are granted a first right of refusal and that their economic rights are protected.
Section 2.9 Units Available to the Disabled. Property Owner shall construct the Development consistent with approved Building Permit requirements and in compliance with all applicable federal and state disabled persons accessibility requirements including the Federal Fair Housing Act, Section 504 of the Rehabilitation Act of 1973, Title II and/or Title III of the Americans with Disabilities Act of 1990, and Title 24 of the California Code of Regulations.
ARTICLE 3.
INCOME CERTIFICATION AND REPORTING
Section 3.1 Income Certification. The Property Owner will obtain, and complete, as a condition to initial occupancy and maintain on file annually thereafter, income certifications from each Resident renting any of the Restricted Units. The Property Owner shall make a good faith effort to verify that the income provided by an applicant or occupying household (for all adults age eighteen (18) or older) in an income certification is accurate by obtaining an income tax return for the three most recent tax years, (or if no such tax return has been filed, another form of independent verification acceptable to the City) and one or more third party verifications of income including but not limited to: (1) one month's pay stub for the most recent pay period; (2) an income verification form from the applicant's current employer; (3) an income verification form from the Social Security Administration and/or the California Department of Social Services if the eligible applicant receives assistance from either of such agencies; or (4) unemployment benefits; (5) profit and loss statement; (6) benefit statement; and (7) asset statement. .
Section 3.2 Annual Report to City. The Property Owner shall submit to the City: (a) not later than the sixtieth (60th) day after the close of each calendar year, or such other date as may be requested by the City, a statistical report, in a form acceptable to the City, including income and rent data for all Restricted Units and an assessment of compliance with the approved Management Plan, and an evaluation of the Management Agent. The Annual Report shall, at a minimum, include the following most recent information for each Restricted Units in the Project, but is not limited to: (i) unit number; (ii) number of bedrooms; (iii) current rent and other charges; (iv) dates of any vacancies during the previous year; (v) number of people residing in each unit; (vi) total gross household income of residents; (vii) documentation of source of household income; (viii) lease commencement and termination dates, (ix) initial move-in date, and (x) Copies of annual Resident Household Income certifications shall be provided to the City for review, along with the information required by Section 3.1 any other information or completed forms requested by the City.
Section 3.3 Additional Information. Within fifteen (15) days after receipt of a written request, the Property Owner shall provide any additional information reasonably requested by the City. The City shall have the right to examine and make copies of all books, records or other documents of the Property Owner which pertain to the Restricted Units of the Development and applicable common use areas.
16 March 3, 2026 Item 9
Section 3.4 Records and Audits.
(a) The Property Owner shall maintain at the Development, or elsewhere with the City's written consent, complete, accurate and current records, books and accounts pertaining solely to the Restricted Units and applicable common areas, and shall permit any duly authorized representative of the City to inspect records, including but not limited to records pertaining to income and household size of Residents, Rent charged Residents and affirmative marketing requirements. All Resident lists, applications and waiting lists relating to the Restricted Units shall at all times be kept separate and identifiable from any other business of the Property Owner and shall be maintained as required by the City, in a reasonable condition for proper audit and subject to examination during business hours by representatives of the City. The Property Owner shall retain copies of all materials obtained or produced with respect to occupancy of the Restricted Units for a period of at least five (5) years.
(b) The City shall notify Property Owner of any records it deems insufficient.
Property Owner shall have fifteen (15) calendar days after the receipt of such a notice to correct any deficiency in the records specified by the City in such notice, or if a period longer than fifteen (15) days is reasonably necessary to correct the deficiency, then Property Owner shall begin to correct the deficiency within fifteen (15) days and correct the deficiency as soon as reasonably possible.
(c) In addition, the City or any designated agent or employee of the City at any time shall be entitled to audit all of Property Owner's books, records (including tenant files), and accounts pertaining solely to the Restricted Units. Such audit shall be conducted during normal business hours at the principal place of business of Property Owner and other places where records are kept. Upon an event of default under this Agreement, the City or any designated agent or employee of the City shall be entitled to audit all of Property Owner's books, records (including Restricted Unit Resident files only), and accounts pertaining solely to the Restricted Units and applicable common areas, with the Property Owner's review limited to factors reasonably determined by the City to ascertain compliance pertaining the Restricted Unit in compliance with the City's Affordable Housing Ordinance and all other applicable laws.
Section 3.5 On-site Inspection. The City shall have the right to perform an on-site inspection of the Development at least one (1) time per year upon forty-eight hours (48) prior notice, which inspection shall focus on ensuring compliance with the terms of this Agreement. The Property Owner agrees to cooperate in such inspection.
Section 3.6 Monitoring and Compliance Fee. In connection with this Agreement, City shall have the right to charge Property Owner a monitoring and compliance fees as set forth in City's master fee schedule. The terms of this Section 3.6 shall not apply to the extent the Development meets the exception set forth in Government Code Section 65915.3, such determination to be made by the City.
Section 3.7 Lease Termination. Any termination of a lease of a Restricted Unit (other than for a default by the Resident) or refusal to renew must be in conformance with California Civil Code Section 1946.2 and 1946.1(b) and preceded by not less than sixty (60) days written notice to the Resident by Owner specifying the grounds for the action or such other periods 17 March 3, 2026 Item 9
specified under Section 1946.2. Any termination of a lease for a default of the Resident shall be in accordance with applicable law.
ARTICLE 4.
OPERATION OF THE RESTRICTED UNITS AND DEVELOPMENT
Section 4.1 Residential Use. The Development shall be operated only for residential use. No part of the Development shall be operated as transient housing in which the term of Resident occupancy is less than thirty (30) days.
Section 4.2 Taxes and Assessments. The Property Owner shall pay all real and personal property taxes, assessments, if any, and charges and all franchise, income, employment, old age benefit, withholding, sales, and other taxes assessed against it, or payable by it, at such times and in such manner as to prevent any penalty from accruing, or any lien or charge from attaching to the Development; provided, however, that the Property Owner shall have the right to contest in good faith, any such taxes, assessments, or charges. In the event the Property Owner exercises its right to contest any tax, assessment, or charge against it, the Property Owner, on final determination of the proceeding or contest, shall immediately pay or discharge any decision or judgment rendered against it, together with all costs, charges and interest.
Section 4.3 Section 8 Certificate Holders. The Property Owner will accept as residents, on the same basis as all other prospective residents, persons who are recipients of federal certificates or vouchers for rent subsidies pursuant to the existing housing program under Section 8 of the United States Housing Act, or its successor. The Property Owner shall not apply selection criteria to Section 8 certificate or voucher holders that are more burdensome than criteria applied to all other prospective residents, nor shall the Property Owner apply or permit the application of management policies or lease provisions with respect to the Development which have the effect of precluding occupancy of units by such prospective Residents. In determining a Section 8 certificate or voucher holders ability to pay rent, the Property Owner shall determine the prospective Residents ability to make only the prospective Resident's portion of the rent.
Section 4.4 Notice of Litigation. Property Owner shall promptly notify the City in writing of any litigation materially affecting the Development, the Property Owner or the Restricted Units and of any claims or disputes that involve a material risk of such litigation.
Section 4.5 Lease Termination. Any termination of a lease of a Restricted Unit (other than for a default by the Resident) or refusal to renew must be preceded by not less than sixty (60) days written notice, and subject to the requirements under Civil Code Section 1947.12, to the Resident by Property Owner specifying the grounds for the action. Any termination of a lease for a default of the Resident shall be in accordance with applicable law.
ARTICLE 5.
PROPERTY MANAGEMENT AND MAINTENANCE
Section 5.1 Management Responsibilities. The Property Owner is responsible for all management functions with respect to the Development, including without limitation the selection 18 March 3, 2026 Item 9
of residents, certification and recertification of household size and income, evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary repairs, and reasonable replacement of capital items, and security. The City shall have no responsibility over management of the Development. The Property Owner shall retain a professional property management company, approved by the City in its reasonable discretion, to perform its management duties hereunder. It shall not be deemed unreasonable if the City disapproves a management agent for failure to meet the requirements set forth in Section 5.2, below. A resident manager shall also be required. The Property Owner shall submit to the City for approval an initial proposed "Management Plan" no later than six (6) months after the commencement of construction of the Development. The City shall reasonably approve or disapprove (with written explanation for disapproval) of the proposed management plan by notifying the Property Owner in writing within sixty (60) days of the date of submission to the City. The Property Owner shall for the entire Term of this Agreement ensure that the management company has demonstrated experience and ability in operating and managing similar mixed-income housing projects in the State of California and not less than two (2) years' experience with Resident income certification procedures outlined in Article 3 or similar experience.
Section 5.2 Management Agent; Periodic Reports. The Development shall at all times be managed by an experienced management agent reasonably acceptable to the City, with demonstrated ability to operate residential facilities like the Development in a manner that will provide decent, safe, and sanitary housing (as approved, the "Management Agent"). The Property Owner shall for the entire Term of this Agreement ensure the Management Agent of the Development has demonstrated experience and ability in operating and managing similar mixedincome housing projects in the State of California, and not less than two (2) years' experience with Resident income certification procedures outlined in Article 3 or similar experience. The Property Owner shall contract with a new Management Agent or subcontract with a Management Agent that: (a) is a California corporation or company or is a corporation or company that is authorized to do business in California whose primary business purpose includes operation and management of mixed-income or affordable multifamily housing, or an affiliate thereof; (b) has not less than two (2) years' experience in owning, operating or managing mixed-income or affordable housing projects in San Diego or Southern California; and (c) the proposed Management Agent has no record of uncured defaults, maintenance problems, housing or building code violations, or substantiated fair housing complaints at properties it owns or operates. The Property Owner shall submit for the City's reasonable approval the identity of any proposed Management Agent and onsite resident manager. The Property Owner shall provide the City with the name of the Managing Agent and submit such additional information about the background, experience, and financial condition of any proposed Management Agent and on-site resident manager as is reasonably necessary for the City to determine whether the proposed Management Agent or on-site resident manager meets the standard for a qualified Management Agent or on-site resident manager set forth above. If the City reasonably determines the proposed Management Agent or on-site resident manager does not meet the standard for a qualified Management Agent or on-site resident manager set forth above, the City shall disapprove the proposed Management Agent or on-site resident manager by notifying the Property Owner in writing. Unless the proposed Management Agent or on-site resident manager is disapproved by the City within thirty (30) days, which disapproval shall state with reasonable specificity the basis for disapproval, it shall be deemed approved and no further action by the Property Owner shall be required. The parties agree and acknowledge that the City will have the right to disapprove a proposed Management Agent based on any of the 19 March 3, 2026 Item 9
following: uncured defaults, ongoing or repeated maintenance problems, housing or building code violations, and/or substantiated fair housing complaints at properties it owns or operates.
Section 5.3 Performance Review. In addition to the reporting requirements under Section 5.2 above, the City reserves the right to conduct an annual (or more frequently, if deemed reasonably necessary by the City) review of the management practices and financial status of the Restricted Units. The purpose of each periodic review will be to enable the City to determine if the Restricted Units are being operated and managed in accordance with the requirements and standards of this Agreement. The Property Owner shall cooperate with the City in such reviews.
Section 5.4 Replacement of Management Agent or On-Site Resident Manager. (a) If, as a result of a periodic review, the City determines, in its reasonable judgment, that the Restricted Units are not being operated and managed in accordance with any of the material requirements and standards of this Agreement, the City shall deliver notice to the Property Owner of its intention to cause replacement of the Management Agent or on-site resident manager, including the reasons therefor. Within fifteen (15) days of receipt by Property Owner of such written notice, City staff and the Property Owner shall meet in good faith to consider methods for improving the financial and operating status of the Development. If, after a reasonable period as determined by the City (not to exceed sixty (60) days after the meeting between the City and the Property Owner), the City determines that the Property Owner is not operating and managing the Development in accordance with the material requirements and standards of this Agreement, the City may require replacement of the Management Agent or on-site resident manager. (b) If, after the above procedure, the City requires in writing the replacement of the Management Agent or on-site resident manager, the Property Owner shall promptly dismiss the then Management Agent or on-site resident manager within sixty (60) days' notice, and shall appoint as the Management Agent or on-site resident manager a person or entity meeting the standards for a Management Agent or on-site resident manager set forth in Section 5.2 above and reasonably approved by the City pursuant to Section 5.2 above. The City shall have the right to review and inspect documents related to the management and operation of the Restricted Unit. The then acting Management Agent will have a period of thirty (30) days to address any deficiencies identified by the City. If, after initial meeting or after the sixty (60) day cure period runs (commencing from the date of the deficiency notice), the City staff recommends in writing to the Property Owner for the replacement of the Management Agent solely for the Restricted Units, the Property Owner shall identify a replacement Management Agent or a subcontract the Management Agent duties for the Restricted Unit, to a person or entity meeting the standards set forth in Section
5.2(a) above and subject to the City's reasonable approval pursuant to Section 5.2 above. (c) If, after the above procedure, the City requires in writing the replacement of the Management Agent or on-site resident manager, the Property Owner shall promptly dismiss the then Management Agent or on-site resident manager within thirty (30) days notice, and shall appoint as the Management Agent or on-site resident manager a person or entity meeting the standards for a Management Agent or on-site resident manager set forth in Section 5.2 above and reasonably approved by the City pursuant to Section 5.2 above. 20 March 3, 2026 Item 9
(d) Any contract for the operation or management of the Development entered into by the Property Owner shall provide that the contract can be terminated as set forth above.
Failure to remove the Management Agent or on-site resident manager in accordance with the provisions of this Section shall constitute default under this Agreement, and the City may enforce this provision through legal proceedings as specified in Section 6.5, below.
Section 5.5 Maintenance Requirements.
(a) The Property Owner agrees, for the entire Term of this Agreement, to reasonably maintain all interior and exterior improvements, including landscaping, on the Development in good condition and repair (and, as to landscaping, in a healthy condition), normal wear and tear excepted, and in accordance with all applicable laws, rules, ordinances, orders and regulations of all federal, state, county, municipal, and other governmental agencies and bodies having or claiming jurisdiction and all their respective departments, bureaus, and officials, and in accordance with the following maintenance conditions:
(1) Landscaping. The Property Owner agrees to have reasonable landscape maintenance performed at least every other week, including replacement of dead or diseased plants with comparable plants. Property Owner agrees to adequately water the landscaping on the Development in compliance with City policies, but subject to state or local restrictions on water usage. No improperly maintained landscaping on the Development shall be visible from public streets and/or rights of way.
(2) Yard Area. No yard areas on the Development shall be left unmaintained, including:
(A) broken or discarded furniture, appliances and other, household equipment stored in yard areas for a period exceeding one (1) week; (B) packing boxes, lumber, trash, dirt and other debris in areas visible from public improvements or neighboring properties; and (C) vehicles parked or stored in other than approved parking areas.
(3) Building. No buildings located on the Development may be left in an unmaintained condition so that any of the following exist:
(A) violations of state law, uniform codes, or City ordinances; (B) conditions that constitute an unsightly appearance that detracts from the aesthetics or value of the Development or constitutes a private or public nuisance; (C) broken windows;
(D) graffiti (must be removed within seventy-two (72) hours); and
21 March 3, 2026 Item 9
(E) conditions constituting hazards and/or inviting trespassers, or malicious mischief.
(4) Sidewalks. The Property Owner shall maintain, repair, and replace as necessary all private sidewalks adjacent to the Development. (b) In the event that the Property Owner breaches any of the covenants contained in this Section, and such default continues for a period of seven (7) days after written notice from the City with respect to graffiti, debris, waste material, and general maintenance or thirty (30) days after written notice from the City with respect to landscaping and building improvements, then the City, in addition to whatever other remedy it may have at law or in equity, shall have the right to enter upon the Development and perform or cause to be performed all such acts and work necessary to cure the default. Pursuant to such right of entry, the City shall be permitted (but is not required) to enter upon the Development and perform all acts and work necessary to protect, maintain, and preserve the Improvements and landscaped areas on the Development, and to attach a lien on the Development, or to assess the Development, in the amount of the expenditures arising from such acts and work of protection, maintenance, and preservation by the City and/or costs of such cure, including a ten percent (10%) administrative charge, which amount shall be promptly paid by the Property Owner to the City upon demand.
ARTICLE 6.
MISCELLANEOUS
Section 6.1 Notice of Expiration of Term. To the extent applicable, prior to the termination of the Term, the Property Owner shall provide all required notices to Residents of the Restricted Units (and other required parties) in compliance with the requirements of Government Code Section 65863.10, Section 65863.11 and 65863.13, or successor statutes. The Property Owner shall also file a copy of any notices sent by the Property Owner pursuant to this Section with the City Manager.
Section 6.2 Sale or Transfer of the Project.
(a) Property Owner hereby covenants and agrees to promptly notify City if it sells, transfers, or otherwise disposes of the Property or the Project. Each transferee shall expressly assume all applicable obligations of Property Owner imposed by this Agreement. Notwithstanding anything herein to the contrary this section shall not apply to a foreclosure under any construction or permanent financing related to the construction, development, or operation of the Project. (b) Other than renting or leasing to a Qualified Household, Property Owner shall not sell, transfer, allow the possession of, and/or dispose of any Restricted Unit to any person and/or entity, unless the proposed transferee shall have executed and delivered to the City an express written assumption of all of Property Owner's obligations under this Agreement, on a form reasonably acceptable to City. Upon transfer contemplated hereby, and upon the transferee's express written assumption, the transferor shall be released from, and City shall look solely to the transferee for, the performance of any and all obligations under this Agreement. Any purchaser of the Restricted Unit(s) shall be, and must agree in writing to be, bound by the terms of this Agreement.
22 March 3, 2026 Item 9
Section 6.3 Term.
This Agreement and all and each of the provisions hereto shall become effective upon its execution and delivery, shall remain in full force and effect for a period of fifty-five (55) years from the date of issuance of certificate of occupancy for the last of the Restricted Units.
Section 6.4 Covenants to Run with the Land.
(a) All conditions, covenants, and restrictions contained in this Agreement shall be covenants running with the land through Termination of the Term, and shall, in any event, and without regard to technical classification or designation, legal or otherwise, be, to the fullest extent permitted by law and equity, binding for the benefit and in favor of, and enforceable by City, its successors and assigns, against Property Owner, its successors and assigns, to or of the Project or any portion thereof or any interest therein, and any party in possession or occupancy of said Project or portion thereof. (b) In amplification and not in restriction of the provisions set forth hereinabove, it is intended and agreed that City shall be deemed a beneficiary of the Agreements and covenants provided hereinabove both for and in its own right and also for the purposes of protecting the interests of the community. All covenants without regard to technical classification or designation shall be binding for the benefit of City and such covenants shall run in favor of City for the entire Term during which such covenants shall be in force and effect, without regard to whether City is or remains an owner of any land or interest therein to which such covenants relate. City shall have the right, in the event of any breach of any such agreement or covenant, to exercise all the rights and remedies, and to maintain any action at law or suit in equity or other proper proceedings to enforce the curing of such breach of Agreement or covenant.
(c) City and its successors and assigns, and Property Owner and the permitted successors and assigns of Property Owner in and to all or any part of the fee title to the Project shall jointly have the right upon written agreement signed by both Parties to consent and agree to changes in, or to eliminate in whole or in part, any of the covenants, easements, or restrictions contained in this Agreement without the consent of any Resident, lessee, easement holder, licensee, mortgagee, trustee, beneficiary under a deed of trust, or any other person or entity having any interest less than a fee in the Project. The covenants contained in this Agreement, without regard to technical classification shall not benefit or be enforceable by any owner of any other real property within or outside the Project, or any person or entity having any interest in any other such realty.
(d) No breach of any of the provisions of this Agreement shall impair, defeat, or render invalid the lien of any mortgage, deed of trust or like encumbrance made in good faith and for value encumbering the Property or the Project or any portion thereof.
Section 6.5 Burden and Benefit. CITY AND PROPERTY OWNER HEREBY
DECLARE THEIR UNDERSTANDING AND INTENT THAT THE BURDEN OF THE
COVENANTS SET FORTH HEREIN TOUCH AND CONCERN THE PROPERTY
THROUGHOUT THE TERM AND THE PROJECT IN THAT PROPERTY OWNER'S 23 March 3, 2026 Item 9
LEGAL INTEREST IN THE PROJECT MAY BE RENDERED LESS VALUABLE THEREBY. CITY AND PROPERTY OWNER HEREBY FURTHER DECLARE THEIR
UNDERSTANDING AND INTENT THAT THE BENEFIT OF SUCH COVENANTS
TOUCHING AND CONCERNING THE LAND IS THE ENHANCEMENT AND
INCREASED ENJOYMENT AND USE OF THE PROJECT BY QUALIFIED
HOUSEHOLDS, THE INTENDED BENEFICIARIES OF SUCH COVENANTS,
RESERVATIONS, AND RESTRICTIONS, AND BY THE FURTHERING OF PUBLIC PURPOSES FOR WHICH THE ENTITLEMENTS WERE APPROVED.
Section 6.6 Uniformity; Common Plan. THE COVENANTS, RESERVATIONS
AND RESTRICTIONS HEREOF SHALL APPLY UNIFORMLY TO THE ENTIRE
PROJECT TO ESTABLISH AND CARRY OUT A COMMON PLAN FOR THE USE,
DEVELOPMENT, AND IMPROVEMENT OF THE PROJECT THROUGHOUT THE TERM.
Section 6.7 Default. Each of the following shall constitute an "event of default" by property owner under this Agreement:
(a) Non-Monetary Failure to Perform. If, as part of developing the Project, Property Owner fails to construct the Restricted Units or otherwise fails to timely perform, comply with, or observe any of the terms, covenants, or conditions of this Agreement (other than those provisions elsewhere referred to in this Section 6) and such failure continues uncured or without Property Owner commencing to diligently cure for thirty (30) days after notice thereof in writing is given by City to Property Owner; provided if Property Owner has commenced cure but cannot complete such cure reasonably within 30 days. Property Owner shall have 90 days from the date of notice to cure such failure without such failure constituting an event of default.
(b) Voluntary Suspension. The voluntary suspension of Property Owner business or the dissolution or termination of the partnership (if any) constituting Property Owner;
(c) Insolvency. A court having jurisdiction shall have made or entered any decree or order (a) adjudging Property Owner to be bankrupt or insolvent, (b) approving as properly filed a petition seeking reorganization of Property Owner or seeking any arrangement for Property Owner under the bankruptcy law or any other applicable debtor's relief law or statute of the United States or any state or other jurisdiction, (c) appointing a receiver, trustee , liquidator, or assignee of Property Owner in bankruptcy or insolvency or for any of their properties, or (d) directing the winding up or liquidation of Property Owner, if any such decree or order described in clauses (a) to (d), inclusive, shall have continued unstayed or undischarged for a period of ninety (90) days unless a lesser time period is permitted for cure under any mortgage on the Property, in which event such lesser time period will apply under this subsection 6(c) as well; or borrower shall have admitted in writing its inability to pay its debts as they fall due or shall have voluntarily submitted to or filed a petition seeking any decree or order of the nature described in clauses (a) to (c), inclusive.
24 March 3, 2026 Item 9
Section 6.8 Remedies. The occurrence of any Event of Default shall, either at the option of City or automatically where so specified, give City the right to proceed with any and all remedies set forth in this Agreement or otherwise available at law or in equity or by statute (and all of City's rights and remedies shall be cumulative), including but not limited to the following:
(a) Specific Performance. City shall have the right to mandamus or other suit, action or proceeding at law or in equity to require Property Owner to perform its obligations and covenants under this Agreement and/or to enjoin acts on things, which may be unlawful, or in violation of the provisions of this Agreement. (b) Remedies Cumulative. No right, power, or remedy given to City by the terms of this Agreement is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to every other right, power, or remedy given to City by the terms of any such instrument, or by any statute or otherwise against Property Owner and any other person. Neither the failure nor any delay on the part of City to exercise any such rights and remedies shall operate as a waiver thereof, nor shall any single or partial exercise by City of any such right or remedy preclude any other or further exercise of such right or remedy.
(c) Waiver of Terms and Conditions. No waiver of any default or breach by Property Owner hereunder shall be implied from any omission by City to take action on account of such default if such default persists or is repeated, and no express waiver shall affect any default other than the default specified in the waiver, and such waiver shall be operative only for the time and to the extent therein stated. Waivers of any covenant, term, or condition contained herein shall not be construed as a waiver of any subsequent breach of the same covenant, term, or condition. The consent or approval by City to or of any act by Property Owner requiring further consent or approval shall not be deemed to waive or render unnecessary the consent or approval to or of any subsequent similar act. The exercise of any right, power, or remedy shall in no event constitute a cure or a waiver of any default under this Agreement nor shall it invalidate any act done pursuant to notice of default or prejudice City in the exercise of any right, power, or remedy hereunder unless in the exercise of any such right, power, or remedy all obligations of Property Owner to City have been satisfied.
Section 6.9 Recording and Filing. THE PROPERTY OWNER AND CITY SHALL
CAUSE THIS AGREEMENT, AND ALL AMENDMENTS AND SUPPLEMENTS
HERETO AND THERETO, TO BE RECORDED AND FILED IN THE REAL PROPERTY
RECORDS OF THE COUNTY OF SAN DIEGO AND IN SUCH OTHER PLACES AS CITY MAY REASONABLY REQUEST. THE PROPERTY OWNER SHALL PAY ALL FEES AND CHARGES INCURRED IN CONNECTION WITH ANY SUCH RECORDING.
Section 6.10 Governing Law and Venue. This Agreement shall be governed by the laws of the State of California. In the event of any legal action to enforce or interpret this Agreement, the sole and exclusive venue shall be a court of competent jurisdiction located in the North County of San Diego, California, and the Parties hereto agree to and do hereby submit to the jurisdiction of such court, notwithstanding Code of Civil Procedure Section 394. 25 March 3, 2026 Item 9
The Parties waive all provisions of law providing for a change of venue in any proceeding to any other county.
Section 6.11 Amendments. This Agreement shall be amended only by a written instrument executed by the Parties hereto, or their successors in title and duly recorded in the real property records of the County of San Diego.
Section 6.12 Notices. Any notice required to be given hereunder shall be made in writing and shall be given by personal delivery, certified or registered mail, postage prepaid, return receipt requested, at the addresses specified below, or at such other addresses as may be specified in writing by the Parties hereto:
If to City, to: City of Del Mar City Hall
1050 Camino Del Mar
Del Mar, CA 92014
Attn: City Manager
Telephone: (858) 755-9313
Facsimile: (858) 755-2794
With Copies to: Christina Cameron, City Attorney
Devaney Pate Morris & Cameron LLP
402 W. Broadway, Suite 1300
San Diego, CA 92101
Telephone: (619) 354-5030
Facsimile: (619) 354-5035
If to Property Owner,
to:
Watermark DM, L.P.
c/o Kitchell Development Company
Attn. Robert Schramm, President
1707 E. Highland Ave, Suite 100
Phoenix, AZ 85016
With Copies to: Watermark DM, L.P.
c/o Kitchell Development Company
Attn.: Michael Seiber
9909 Mira Mesa Blvd., Suite 300
San Diego, CA 92131
Marco A. Gonzalez
Coast Law Group LLP
1140 S. Coast Highway 101
Encinitas, CA 92024
Such written notices, demands and communications may be sent in the same manner to such other addresses as the affected party may from time to time designate by mail as provided in this Section. Notice shall be deemed given three business days after the date of mailing.
26 March 3, 2026 Item 9
Section 6.13 Severability. If any provision of this Agreement shall be invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining portions hereof shall not in any way be affected or impaired thereby.
Section 6.14 Indemnity. To the fullest extent permitted by law, excepting as relates to acts of gross negligence or willful misconduct by an Indemnified Party, the Property Owner agrees to indemnify, hold harmless and defend City and its elected officials, officers, governing members, employees, attorneys and agents (collectively, the "Indemnified Parties" ), from and against any and all losses, damages, claims, actions, liabilities, costs and expenses of any and every conceivable nature, kind or character (including, without limitation, reasonable attorneys' fees, litigation and court costs, amounts paid in settlement and amounts paid to discharge judgments) to which the Indemnified Parties, or any of them, may become subject to under any statutory law (including federal or state securities laws) or at common law or otherwise, arising out of or based upon or in any way relating to:
(a) This Agreement or the execution or amendment thereof in connection with the transactions contemplated thereby;
(b) Property Owner's ownership or operation of the Property and the Project or any act or omission of the Property Owner or any of its agents, contractors, servants, employees or licensees in connection with the Property and the Project, the operation of the Project, or the condition, environmental or otherwise, occupancy, use, possession, conduct or management of work done in or about, or from the planning, design, acquisition, installation, operation or rehabilitation of, the Project or any part thereof; (c) Any lien or charge upon payments by the Property Owner to the County, or any taxes (including, without limitation, all ad valorem taxes and sales taxes), assessments, impositions and other charges imposed on the County in respect of any portion of the Project;
(d) Any violation of any environmental law, rule, or regulation with respect to, or the release of any toxic substance from, the Property or the Project or any part thereof; (e) Any untrue statement or misleading statement or alleged untrue statement or alleged misleading statement of a material fact by the Property Owner that City relied upon in entering into this Agreement; except to the extent such damages are caused by the negligence or misconduct of such Indemnified Party. In the event that any action or proceeding is brought against any Indemnified Party with respect to which indemnity may be sought hereunder, the Property Owner, upon written notice from the Indemnified Party, shall assume the investigation and defense thereof, including the employment and payment for counsel selected by the Indemnified Party, and shall assume the payment of all reasonable expenses related thereto, with full power to litigate, compromise or settle the same; provided that the Indemnified Party shall have the right to review and approve or disapprove any such compromise or settlement.
27 March 3, 2026 Item 9
Section 6.15 Time. Time is of the essence in this Agreement.
Section 6.16 Multiple Originals; Counterparts. This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts.
Section 6.17 Titles of Parts and Sections. Any titles of the sections or subsections of this Agreement are inserted for convenience of reference only and shall be disregarded in interpreting any part of the Agreement's provisions.
Section 6.18 Construction. Except where the context otherwise requires, words imparting the singular number shall include the plural number and vice versa, words imparting persons shall include firms, associations, partnerships and corporations, and words of either gender shall include the other gender.
Section 6.19 Waiver of Jury Trial. Unless prohibited by Federal, State or local laws, each party to this Agreement hereby expressly waives any right to trial by jury of any claim, demand, action or cause of action arising under any Loan Document or in any way connected with or related or incidental to the dealings of the Parties hereto or any of them with respect to this Agreement, or the transactions related thereto, in each case whether now existing or hereafter arising, and whether sounding in contract or tort or otherwise; and each party hereby agrees and consents that any such claim, demand, action or cause of action shall be decided by court trial without a jury, and that any party to this Agreement may file an original counterpart or a copy of this section with any court as written evidence of the consent of the Parties hereto to the waiver of their right to trial by jury.
Section 6.20 Non liability. By accepting or approving anything required to be performed or given to City under this Agreement, City shall not be deemed to have warranted or represented the sufficiency or legal effect of the same, and no such acceptance or approval shall constitute a warranty or representation by City to anyone.
Section 6.21 Obligations Unconditional and Independent. Notwithstanding the existence at any time of any obligation or liability of City to Property Owner, or any claim by Property Owner against City, in connection with this Agreement or otherwise, Property Owner hereby waives any right it might otherwise have (a) to offset any such obligation, liability or claim against Property Owner's obligations under this Agreement or (b) to claim that the existence of any such obligation, liability or claim excuses the nonperformance by Property Owner of any of its obligations under this Agreement.
Section 6.22 Revival of Agreement after Foreclosure. This Agreement shall be revived according to its original terms if, during the original Term, the owner of record before the foreclosure, or deed in lieu of foreclosure, or any entity that includes the former owner or those with whom the former owner has or had family or business ties, obtains an ownership interest in the Development or the Property.
Section 6.23 Subordination. The City has no intent or obligation to subordinate this Agreement to any future financing or deeds of trust.
28 March 3, 2026 Item 9
Section 6.24 Action and Approval. Whenever action and/or approval by City is required under this Agreement, the City Manager or the City Manager's designee may act on and/or approve such matter unless specifically provided otherwise, or unless the City Manager or the City Manager's designee determine in their discretion that such action or approval requires referral to City Council for consideration.
Section 6.25 No Third Party Beneficiaries. Except as expressly set forth herein, nothing contained in this Agreement is intended to or shall be deemed to confer upon any person, other than the Parties and their respective successors and assigns, any rights or remedies hereunder.
Section 6.26 Assignment by the City. The City may assign its rights and obligations under this Agreement to any instrumentality of the City or other public entity without the consent of, but upon prior written notice to, the Property Owners. [Signature Page Follows]
29 March 3, 2026 Item 9
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written.
PROPERTY OWNER:
Watermark DM, L.P.,
an Arizona limited partnership
By: Watermark Del Mar, LLC
an Arizona limited liability company,
Its: General Partner
By: Kitchell Development Company,
an Arizona Corporation
Its: Member
By:
Its:
CITY:
By:
Ashley Jones, City Manager
30 March 3, 2026 Item 9
STATE OF CALIFORNIA )
)
COUNTY OF __________________ )
On ____________________, before me, ___________________________, Notary Public, personally appeared ______________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
______________________________________
Name: _______________________________
Name: Notary Public
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 31 March 3, 2026 Item 9
STATE OF CALIFORNIA )
)
COUNTY OF __________________ )
On ____________________, before me, ___________________________, Notary Public, personally appeared ______________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
______________________________________
Name: _______________________________
Name: Notary Public
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 32 March 3, 2026 Item 9
A-1
EXHIBIT A
PROPERTY LEGAL DESCRIPTION
Real property in the City of Del Mar, County of San Diego, State of California, described as follows:
A portion of the Resubdivision of Arden Heights No. 6, in the City of Del Mar, County of San Diego, State of California, according to Map No. 2212, filed in the Office of County Recorder of San Diego County February 19, 1937, as reflected on Record of Survey No. 25900, filed in the Office of County Recorder of San Diego County August 27, 2025, more particularly described as follows:
Beginning at the most Southerly corner of above property; thence along the property line of said property
1. North 38°35’28” East 259.36 Feet; Thence
2. South 80°33’06” East 194.50 Feet; Thence
3. North 16°57’28” East 25.85 Feet to the right-of-way of San Dieguito Drive, being 30 feet from said centerline; thence along said right-of-way
4. North 43°24’01” West 58.09 Feet to a point on a tangent 432.00 foot radius curve concave Northeasterly; thence along said curve
5. Northwesterly 94.10 Feet through a central angle of 12°28’48” to a point on a tangent 570.00 foot radius curve concave Southwesterly; thence along said curve
6. Northwesterly 132.42 Feet through a central angle of 13°18’37” to a tangent line; thence
7. North 44°13’50” West 20.63 Feet to a point on a tangent 15.00 foot radius curve concave Southerly; thence along said curve
8. Westerly 23.16 Feet through a central angle of 88°28’20” to the right-of-way of Jimmy Durante Boulevard, being 40 feet from said centerline and a point on a tangent 1,640.00 foot radius curve concave Northwesterly; thence along said curve
9. Southwesterly 263.16 Feet through a central angle of 9°11’37” to a point on a tangent 810.00 foot radius curve concave Southeasterly; thence along said curve
10. Southwesterly 186.76 Feet through a central angle of 13°12’38”; thence leaving said right-ofway
11. South 53°09’54” East 250.75 Feet to the Point of Beginning.
The legal description is pursuant to "Certificate of Compliance for Boundary Adjustment BA22- 001" as evidenced by document recorded February 11, 2026 as Instrument No. 2026-37962 of Official Records.
APN: 299-100-47-00(Affects portion of the land) and 299-100-48-00(Affects portion of the land) 299-100-51-00(New APN not yet assessed)
33 March 3, 2026 Item 9
B-1
EXHIBIT B
LOCATION OF RESTRICTED UNITS
34 March 3, 2026 Item 9
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:
TO: Honorable Mayor and City Councilmembers
FROM: Denise Galvan, Management Analyst
Sarah Krietor, Administrative Services Manager/City Clerk Via Ashley Jones, City Manager
DATE: March 3, 2026
SUBJECT: Design Review Board Interviews and Appointment REQUESTED ACTION/RECOMMENDATION:
Staff recommends that the City Council review the Citizen Interest Forms (Attachment A), interview the applicants, and appoint one resident to serve as a voting member on the Design Review Board for a full four-year term effective March 3, 2026, and expiring on March 31, 2030.
DISCUSSION/ANALYSIS:
The Design Review Board (DRB) evaluates planning applications for their consistency with the provisions of the Del Mar Community (General) Plan, Zoning Ordinance and the applicable design review standards included in the Design Review Ordinance (DRO).
There is currently one voting member vacancy on the DRB due to Glenn Warren’s term expiration on February 7, 2026. The City advertised the vacancy and received two Citizen Interest Forms during the recruitment period from Caitlin Laipenieks and Dolores Davies (Attachment A). The two applicants have indicated that they meet the requirements of the Del Mar Municipal Code (DMMC) Section 2.38.020 (Attachment B) to serve as a voting member on the DRB.
Staff recommends that the City Council review the Citizen Interest Forms, interview the applicants, and vote to appoint one applicant to serve on the DRB as a voting member for a full four-year term beginning on March 3, 2026, and expiring on March 31, 2030.
Pursuant to Council Policy 200 “Committees – City Council Advisory Committees, Boards and Commissions” (Attachment C), an applicant must receive three affirmative votes in order to be appointed. If three affirmative votes are not received, the Council can choose to vote again or to direct staff to reopen the vacancy to solicit additional interest.
If the vacancies are filled, the DRB will have a full roster of voting members.
ATTACHMENTS:
Attachment A - Citizen Interest Forms
Attachment B - Del Mar Municipal Code Section 2.38.020
Attachment C - City Council Policy 200
1 March 3, 2026 Item 10
CITIZEN INTEREST FORM
1050 Camino Del Mar, Del Mar California 92014 | (858) 755-9313 | https://www.delmar.ca.us/ Form Approved 12/7/21; Revised 9/10/2025
Thank you for your interest in serving the Del Mar Community. Please use this Citizen Interest Form to apply to serve on a City of Del Mar advisory committee, Planning Commission, or Design Review Board. The City of Del Mar greatly values the many talented citizens who volunteer to serve in city government. We encourage you to get involved. Please indicate whether you are seeking to serve on the Del Mar Planning Commission, Design Review Board, or one or more of the City’s many advisory committees, and please note your order of preference indicating 1st, 2nd choice, etc.
Before making your selection, we encourage you to spend some time learning about what each entity does, what its mission is, and what your role would be if you were appointed. Please note that in addition to the general questions below to be answered by all applicants, there are also specific questions tailored to service on the Planning Commission, Design Review Board, or an advisory committee to be answered as well.
Before applying, you are encouraged to attend or watch a committee meeting and review recent committee agendas and meeting minutes. If appointed, you will be expected to attend the meetings, which typically last about 2 hours in length, or more depending on the agenda, and require about 1 hour of preparation time for each meeting. Please note that in accordance with City Council Policy 200, committee members must not miss more than three meetings in a given calendar year. Committee meeting times vary, so please review the website calendar to make sure the meeting times for the committee you are applying for work for your schedule: Public Meeting Calendar.
You can also view current committee webpages, charters, and member rosters to get more information about each committee. In accordance will Council Policy 200- City Council Advisory Committees, Boards and Commissions members of the public may serve on two boards, committees or commissions concurrently except in special circumstances as determined by the Council. Additionally, the number of consecutive terms that an individual may serve on a committee is two unless the City Council makes an exception if they feel it is to the benefit of the committee to re-appoint an individual to a third term. Please note that ex-officio members are non-voting and may be non-residents.
Form Submittal: Citizen Interest Forms must be submitted by the published deadline. Forms can be submitted in-person or by mail at: Del Mar City Hall, 1050 Camino del Mar, Del Mar 92014; or via email: [email protected]. Please note: City Hall is closed to the public for in-person services on Fridays, and Citizen Interest Forms should be submitted via email only on Fridays. Citizen Interest Forms can be submitted in-person or via email Monday through Thursday.
IMPORTANT: Save the form on your computer prior to filling it out. Do not fill out the form in the Internet browser.
By Skrietor at 3:42 pm, 1/15/26
2 March 3, 2026 Item 10
THIS IS A PUBLIC RECORD SUBJECT TO DISCLOSURE.
Note: Personal information may be withheld from public view as allowed by law
DEL MAR CITIZEN INTEREST FORM
I. APPLICANT INFORMATION
Last Name First Name Middle Initial
Home Street Address* City, State
Business Street Address (if applicable) City, State
Home Phone Number Business Phone Number E-mail Address
II. APPLICATION DETAILS
I am interested in serving on the following Committees, Board(s) or Commission(s) in order of preference (indicate 1st, 2nd choice, etc.):
___Design Review Board
___Finance Committee
___Lagoon Committee
___Measure Q Citizen Oversight Committee
___Parks and Recreation Committee
___Planning Commission
___Shores Park Master Plan Ad-Hoc Advisory Committee
___Sustainability Advisory Committee
___Traffic and Parking Advisory Committee
___Undergrounding Program Advisory Committee
___Other(s) (please indicate):______________________________________ Qualifications for appointment and/or reasons for application (attach additional pages as needed):
Education:
*Applicants are required to provide a physical residency address. Mailing addresses or Post Office boxes will not be accepted. The City will maintain all residency addresses strictly confidential.
Laipenieks Caitlin Rae
Del Mar, CA
x
The City of Del Mar is a small tight knit community with wonderful, engaged residents.
To keep the character of our community, it is imperative the Design Review Board consist of engaged residents who care about the community and fairly apply the standards to each project consistently and objectively. I believe I can be a valuable asset on the DRB given my extensive legal experience.
Bachelor of Arts, Northwestern University 1997
Juris Doctor, California Western School of Law 2002
Master of Social Work, San Diego State University 2002
3 March 3, 2026 Item 10
THIS IS A PUBLIC RECORD SUBJECT TO DISCLOSURE.
Note: Personal information may be withheld from public view as allowed by law Relevant Experience (job or volunteer etc.):
Name all of the Del Mar Committees/Boards/Commissions that you now serve on:
Please name all the Boards/Commissions/Committee/Task Forces that you have served on in the past, and if you can, the dates of your service:
Optional: Please list three Del Mar residents who can provide a reference**:
NAME STREET NAME (no house
number)
Phone Number
**Due to Brown Act limitations that restrict communications between Councilmembers regarding upcoming actions of the City Council, please do not include a current sitting Councilmember as a reference for your appointment.
Residency
Month Year
I have been a resident of California since:
I have been a resident of San Diego County since:
I have been a resident of Del Mar since:
What part of town do you live in? Geographic diversity is desirable and will be taken into account.
Check the neighborhood map to verify your neighborhood. ' North Bluff
' North Beach
' South Beach
' Village Center
' South Bluff
' South Hills
' North Hills
' Valley
Are you a full-time or part-time resident of Del Mar? ' Full-time ' Part-time Is Del Mar your primary place of residence? ' Yes ' No
Are you a registered voter in Del Mar? ' Yes ' No
I have been a lawyer for 23 years working for a public entity. I am familiar with the public entity budget process, and have advised on aspects of it in my professional life. For the last three years, I had provided advice to a public entity on general governance including Prop 218 issues, Brown Act, Public Records requests, conflicts, gift of public funds issues and much more. Through the course of my work, I applied facts to regulations and law to form ethical and legal opinions.
The City Council will consider my appointment to the Measure Q Committee on January 20, 2026.
Kay Geiserman Oribia Road
Laura Schaefer 6th Street
Lauren Gist Via Alta
August 1998
August 1998
December 2020
4 March 3, 2026 Item 10
THIS IS A PUBLIC RECORD SUBJECT TO DISCLOSURE.
Note: Personal information may be withheld from public view as allowed by law III. COMMITTEE SPECIFIC QUESTIONS
The following are additional questions related to specific committees. Please answer the questions only for the committee(s) you are applying for.
1. Finance Committee
The Finance Committee is looking for applicants with financial expertise and background.
Please describe your experience reviewing financial reports, conducting financial studies or any related experience. Please include any experience specific to public entities.
What aspects of the City’s finances most interest you and why?
2. Measure Q Citizen Oversight Committee
Membership on the Measure Q Citizen Oversight Committee is set by category. Which membership category do you best fit in? (Select all that apply)
' Current (or within past 5 years) Finance Committee Member ' Business Community Member
' At-large Resident Member
' Other (please explain): ____________________________________________________
3. Traffic and Parking Advisory Committee
Which membership category do you best fit in? (Select all that apply) ' Business representative (can be a non-resident)
' Resident
' Other (please explain): ____________________________________________________ Do you have any special expertise or experience related to traffic and parking? If yes, please explain:
4. Parks and Recreation Committee
The Parks and Recreation Committee is looking for applicants with an interest in the City’s parks and open spaces.
5 March 3, 2026 Item 10
THIS IS A PUBLIC RECORD SUBJECT TO DISCLOSURE.
Note: Personal information may be withheld from public view as allowed by law Please describe your personal or professional experience related to parks, open spaces, trails, public recreation or any similar experience.
What aspects of the City’s parks and recreation most interest you and why?
5. Lagoon Committee
The Lagoon Committee is looking for applicants interested in the preservation of the lagoon and surrounding area.
What aspect(s) of being on the Lagoon Committee most interest you and why?
6. Shores Park Master Plan Ad-Hoc Advisory Committee
The Shores Park Master Plan Ad-Hoc Advisory Committee is looking for applicants interested in the Shores Park property and planning process.
What aspects of being on the Shores Park Master Plan Ad-Hoc Advisory Committee most interest you and why?
Please describe your approach for participating in the development of a preferred concept for the Master Plan for the Shores Park property.
7. Sustainability Advisory Committee
The Sustainability Advisory Committee members are community leaders on environmental issues.
In what ways would you like to contribute to a more sustainable world either in your personal life or on a broader community level?
6 March 3, 2026 Item 10
THIS IS A PUBLIC RECORD SUBJECT TO DISCLOSURE.
Note: Personal information may be withheld from public view as allowed by law Please describe any outreach or public education efforts you have participated in related to environmental issues or in other areas. Do you have skills or experience in outreach that you could bring to the Sustainability Advisory Committee?
8. Undergrounding Program Advisory Committee
The Undergrounding Program Advisory Committee is seeking applicants with an interest in the citywide undergrounding project.
Is your utility service undergrounded? What involvement did you have, if any? What aspects of being on the Utility Undergrounding Advisory Committee most interest you?
9. Design Review Board and/or Planning Commission
Briefly describe your qualifications and experience as it relates to serving on the Design Review Board or Planning Commission. The required qualifications for each can be found in the Del Mar Municipal Code (DMMC) Chapters 2.34 and 2.38. You will be able to provide more information at a City Council public meeting during an open interview process.
10. For All Committees: Thank you for completing the Citizen Interest Form. Is there anything else you would like to add to your application for the City Council to consider? As an attorney for the last 23 years for the County of San Diego, I have consistently used critical thinking and judgment to apply a given set of facts to regulations and law to form ethical and sound opinions. As a litigator, I have demonstrated skills in negotiation, problem solving and mediation to find suitable outcomes for varied interests. I have a working knowledge of land use law including permitting, sustainability, and environmentally sensitive design.
7 March 3, 2026 Item 10
THIS IS A PUBLIC RECORD SUBJECT TO DISCLOSURE.
Note: Personal information may be withheld from public view as allowed by law IV. SIGNATURE AND ACKNOWLEDGEMENT
Please review the important information below before signing and submitting your application. Please note that recommendations for appointments to City advisory committees (other than the Planning Commission and Design Review Board) are made by the Council Liaisons to that Committee. The appointments are then placed on the consent calendar for consideration for approval by the full City Council at the next available City Council meeting. For reasons of privacy, the individual candidates are not discussed at the meeting.
Additionally, the Del Mar Conflict of Interest Code requires that members of the Design Review Board, Planning Commission, and Finance Committee file Conflict of Interest Statements with the Administrative Services Department in conformance with the Fair Political Practices Commission and the City’s Conflict of Interest Code. Other advisory committee members are not required to file Conflict of Interest Statements.
By signing below, you are acknowledging that you have reviewed the Committee webpage for which you are applying and that you understand the conflict of interest filing requirement, if applicable. Part of your service may include ethics and anti-harassment training upon appointment and bi-annually. Visit the City’s Conflict of Interest Code webpage to learn more about the requirement.
By submitting this application, you are signing under penalty of perjury that the information you are providing, is true and correct to the best of your knowledge. __________________________
Signature Date
Within three (3) business days you will receive a confirmation email that your application is received. If you have questions, please email [email protected] or call (858) 755-9313 and a staff member will get back to you promptly.
1/15/2026
8 March 3, 2026 Item 10
CITIZEN INTEREST FORM
IMPORTANT: Save the form on your computer prior to filling it out. Do not fill out the form in the Internet browser.
Thank you for your interest in serving the Del Mar Community. Please use this Citizen Interest Form to apply to serve on a City of Del Mar advisory committee, Planning Commission, or Design Review Board. The City of Del Mar greatly values the many talented citizens who volunteer to serve in city government. We encourage you to get involved. Please indicate whether you are seeking to serve on the Del Mar Planning Commission, Design Review Board, or one or more of the City’s many advisory committees, and please note your order of preference indicating 1st, 2nd choice, etc.
Before making your selection, we encourage you to spend some time learning about what each entity does, what its mission is, and what your role would be if you were appointed.
Please note that in addition to the general questions below to be answered by all applicants, there are also specific questions tailored to service on the Planning Commission, Design Review Board, or an advisory committee to be answered as well.
Before applying, you are encouraged to attend or watch a committee meeting and review recent committee agendas and meeting minutes. If appointed, you will be expected to attend the meetings, which typically last about 2 hours in length, or more depending on the agenda, and require about 1 hour of preparation time for each meeting. Please note that in accordance with City Council Policy 200, committee members must not miss more than three meetings in a given calendar year. Committee meeting times vary, so please review the website calendar to make sure the meeting times for the committee you are applying for work for your schedule: Public Meeting Calendar.
You can also view current committee webpages, charters, and member rosters to get more information about each committee. In accordance will Council Policy 200- City Council Advisory Committees, Boards and Commissions members of the public may serve on two boards, committees or commissions concurrently except in special circumstances as determined by the Council. Additionally, the number of consecutive terms that an individual may serve on a committee is two unless the City Council makes an exception if they feel it is to the benefit of the committee to re-appoint an individual to a third term. Please note that exofficio members are non-voting and may be non-residents.
Form Submittal: Citizen Interest Forms must be submitted by the published deadline. Forms can be submitted in-person or by mail at: Del Mar City Hall, 1050 Camino del Mar, Del Mar 92014; or via email: [email protected].
9 March 3, 2026 Item 10
1050 Camino Del Mar, Del Mar California 92014 | (858) 755-9313 | https://www.delmar.ca.us/ Form Approved 12/7/21; Revised 3/4/2024
DEL MAR CITIZEN INTEREST FORM
I. APPLICANT INFORMATION
Davies Jamison Dolores
Last Name First Name Middle Initial
Del Mar, CA
Home Street Address* City, State
*Applicants are required to provide a physical residency address. Mailing addresses or Post Office boxes will not be accepted . The City will maintain all residency addresses strictly confidential.
Business Street Address (if applicable) City, State
Home Phone Number Business Phone Number E-mail Address
II. APPLICATION DETAILS
I am interested in serving on the following Committees, Board(s) or Commission(s) in order of preference (indicate 1st, 2nd choice, etc.):
___ Other(s) (please indicate):_______________
___ Arts Advisory Committee ___ Parks and Recreation Committee _1__Design Review Board
_2_ Planning Commission
___ Finance Committee
___ Sustainability Advisory Committee
___ Lagoon Committee
___ Traffic and Parking Advisory Committee
___ Measure Q Citizen Oversight Committee ___ Undergrounding Project Advisory Committee
THIS IS A PUBLIC RECORD SUBJECT TO DISCLOSURE.
Note: Personal information may be withheld from public view as allowed by law 10 March 3, 2026 Item 10
Qualifications for appointment and/or reasons for application (attach additional pages as needed):
Education:
Relevant Experience (job or volunteer etc.):
Name all of the Del Mar Committees/Boards/Commissions that you now serve on:
As a longtime resident of Del Mar, I care deeply about our community character and have seen how residential development can be a positive and a negative contributor. I believe that adhering to the Community Plan, and protecting the natural features that make Del Mar such a special place to live should be prioritized. As en engaged citizen, I have witnessed and participated in numerous development projects and regulatory proposals over the years. As a result, I think I have a good understanding of the DRO and its standards, as well as the Design Guidelines, which have clearly helped to make the design review process more transparent and less subjective. While I’m not an architect or landscape designer by training, I have had a longstanding interest in architecture, design, and landscaping, and have been a member of the Del Mar Garden Club for many years.
B.A. in Political Science, UCLA
In addition to my experience in the Del Mar Garden Club, I have served a few terms on the City’s Sustainability Advisory Committee. A major goal of SAC is to advance the transition to clean energy, which should be an important consideration—both in terms of landscaping and energy use—when reviewing and assessing residential development projects. Several years ago, I also served on the City’s Urban Forest Committee, and think that maintaining Del Mar’s tree canopy should be an important goal for a wide range of environmental and human health reasons.
THIS IS A PUBLIC RECORD SUBJECT TO DISCLOSURE.
Note: Personal information may be withheld from public view as allowed by law 11 March 3, 2026 Item 10
Please name all the Boards/Commissions/Committee/Task Forces that you have served on in the past, and if you can, the dates of your service:
Optional: Please list three Del Mar residents who can provide a reference**:
**Due to Brown Act limitations that restrict communications between Councilmembers regarding upcoming actions of the City Council, please do not include a current sitting Councilmember as a reference for your appointment.
Residency
Month Year
What part of town do you live in? Geographic diversity is desirable and will be taken into account.
Check the neighborhood map to verify your neighborhood.
Sustainability Advisory Committee
Clean Energy Alliance Community Advisory Committee (2023-2025) Sustainability Advisory Committee (two terms)
Urban Forest Committee
NAME STREET NAME (no house
number)
Phone Number
Carol Kerridge El Amigo
John Goodkind Forest
Sandra Dijkstra Rimini
I have been a resident of California since: 4th Generation Californian
I have been a resident of San Diego County since: 1962
I have been a resident of Del Mar since: February 1989
☐ North Bluff
☐ North Beach
☐ South Beach
☐ Village Center
☐ S o u t h
Bluff
☐ S o u t h
Hills
X North Hills
☐ Valley
THIS IS A PUBLIC RECORD SUBJECT TO DISCLOSURE.
Note: Personal information may be withheld from public view as allowed by law 12 March 3, 2026 Item 10
Are you a full-time or part-time resident of Del Mar? X Full-time ☐ Part-time Is Del Mar your primary place of residence? X Yes ☐ No
Are you a registered voter in Del Mar? X Yes ☐ No
III. COMMITTEE SPECIFIC QUESTIONS
The following are additional questions related to specific committees. Please answer the questions only for the committee(s) you are applying for.
1. Arts Advisory Committee
Membership on the Arts Advisory Committee is set by category. Which membership category do you best fit in? Select all that apply. (Note that City staff, consultants, and vendors are precluded from serving on the Arts Advisory Committee.)
☐ Resident with an art background
☐ Resident without an art background
☐ Business Owner- Art related business
☐ Del Mar Foundation Representative
☐ Del Mar Village Association Representative
☐ Ex-Officio (non-voting) – with Art related expertise
☐ Other (please explain): _________________________________________________ Describe your experience and skills as they relate to the world of community art and fine art.
Why in your opinion is public art valuable to the Del Mar community? What is your public art philosophy?
1. Finance Committee
The Finance Committee is looking for applicants with financial expertise and background.
Please describe your experience reviewing financial reports, conducting financial studies or any related experience. Please include any experience specific to public entities.
THIS IS A PUBLIC RECORD SUBJECT TO DISCLOSURE.
Note: Personal information may be withheld from public view as allowed by law 13 March 3, 2026 Item 10
What aspects of the City’s finances most interest you and why?
2. Measure Q Citizen Oversight Committee
Membership on the Measure Q Citizen Oversight Committee is set by category. Which membership category do you best fit in? (Select all that apply)
☐ Current (or within past 5 years) Finance Committee Member ☐ Business Community Member
☐ At-large Resident Member
☐ Other (please explain): ____________________________________________________
3. Traffic and Parking Advisory Committee
Which membership category do you best fit in? (Select all that apply) ☐ Business representative (can be a non-resident)
☐ Resident
☐ Other (please explain): ____________________________________________________ Do you have any special expertise or experience related to traffic and parking? If yes, please explain:
4. Parks and Recreation Committee
The Parks and Recreation Committee is looking for applicants with an interest in the City’s parks and open spaces.
Please describe your personal or professional experience related to parks, open spaces, trails, public recreation or any similar experience.
THIS IS A PUBLIC RECORD SUBJECT TO DISCLOSURE.
Note: Personal information may be withheld from public view as allowed by law 14 March 3, 2026 Item 10
What aspects of the City’s parks and recreation most interest you and why?
5. Lagoon Committee
The Lagoon Committee is looking for applicants interested in the preservation of the lagoon and surrounding area.
What aspect(s) of being on the Lagoon Committee most interest you and why?
6. Shores Advisory Committee
The Shores Advisory Committee is looking for applicants interested in the Shores Park property and planning process.
What aspects of being on the Shores Advisory Committee most interest you and why? Please describe your vision for the future of Shores Park.
7. Sustainability Advisory Committee
The Sustainability Advisory Committee members are community leaders on environmental issues.
In what ways would you like to contribute to a more sustainable world either in your personal life or on a broader community level?
Please describe any outreach or public education efforts you have participated in related to environmental issues or in other areas. Do you have skills or experience in outreach that you could bring to the Sustainability Advisory Committee?
THIS IS A PUBLIC RECORD SUBJECT TO DISCLOSURE.
Note: Personal information may be withheld from public view as allowed by law 15 March 3, 2026 Item 10
8. Undergrounding Project Advisory Committee
The Undergrounding Project Advisory Committee is seeking applicants with an interest in the citywide undergrounding project.
Is your utility service undergrounded? What involvement did you have, if any? What aspects of being on the Utility Undergrounding Advisory Committee most interest you?
9. Design Review Board and/or Planning Commission
Briefly describe your qualifications and experience as it relates to serving on the Design Review Board or Planning Commission. The required qualifications for each can be found in the Del Mar Municipal Code (DMMC) Chapters 2.34 and 2.38. You will be able to provide more information at a City Council public meeting during an open interview process.
11. For All Committees: Thank you for completing the Citizen Interest Form. Is there anything else you would like to add to your application for the City Council to consider? While I am not a planner or architect, early in my career I did work as an assistant planner for Rick Engineering, which gave me some basic grounding in urban planning and residential development. In Del Mar, I have participated in numerous CPP’s, and advocated for and opposed a wide range of proposed projects. When the City moved forward with the development of Design Guidelines, I closely monitored this effort, and wrote numerous news articles to educate residents and others about the purpose of the guidelines, including a Q&A with Matt Bator. In addition, during my long tenure as a communications and public affairs professional with UCSD, I held several leadership positions in University Communications, including serving as executive director, where I worked closely with campus planning, governmental relations, and facilities design staff to assist them in communicating effectively with the campus and surrounding communities on project impacts and development concerns. Consequently, I have the ability to see both the positive and negative impacts of development, from the perspectives of all stakeholders.
THIS IS A PUBLIC RECORD SUBJECT TO DISCLOSURE.
Note: Personal information may be withheld from public view as allowed by law 16 March 3, 2026 Item 10
12. IV. SIGNATURE AND ACKNOWLEDGEMENT
Please review the important information below before signing and submitting your application. Please note that recommendations for appointments to City advisory committees (other than the Planning Commission and Design Review Board) are made by the Council Liaisons to that Committee. The appointments are then placed on the consent calendar for consideration for approval by the full City Council at the next available City Council meeting. For reasons of privacy, the individual candidates are not discussed at the meeting.
Additionally, the Del Mar Conflict of Interest Code requires that members of the Design Review Board, Planning Commission, and Finance Committee file Conflict of Interest Statements with the Administrative Services Department in conformance with the Fair Political Practices Commission and the City’s Conflict of Interest Code. Other advisory committee members are not required to file Conflict of Interest Statements.
By signing below, you are acknowledging that you have reviewed the Committee webpage for which you are applying and that you understand the conflict of interest filing requirement, if applicable. Part of your service may include ethics and anti-harassment training upon appointment and bi-annually.
Visit the City’s Conflict of Interest Code webpage to learn more about the requirement.
By submitting this application, you are signing under penalty of perjury that the information you are providing, is true and correct to the best of your knowledge.
February 5, 2026
____________________________
Date
________________________
Signature
Within three (3) business days you will receive a confirmation email that your application is received. If you have questions, please email [email protected] or call (858) 755-9313 and a staff member will get back to you promptly.
THIS IS A PUBLIC RECORD SUBJECT TO DISCLOSURE.
Note: Personal information may be withheld from public view as allowed by law 17 March 3, 2026 Item 10
Created: 2025-05-16 16:11:22 [EST]
(Supp. No. 10, Update 2)
2.38.020 Membership.
A. The Design Review Board shall consist of seven members who are registered voters of the City of Del Mar and maintain residency within the City's municipal boundaries. Residency shall be maintained for no less than six months prior to appointment and if a Board Member ceases to reside within the City during their membership on the Design Review Board, the appointment of such person shall be deemed to have been terminated. For the purposes of this section, residency shall mean someone who maintains residence and is physically present in the City of Del Mar for no less than six months per calendar year.
B. Members shall serve staggered, four-year terms.
C. The members shall be persons who, by experience, training, education, or occupation, have demonstrated talent and interest in developing the aesthetics of environmentally sensitive design within the framework of practical considerations. (Ord. No. 767; Ord. No. 785; Ord. No. 793; Ord. No. 825; Ord No. 931, § 1, 9-18-2017) 18 March 3, 2026 Item 10
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POLICY:
A. Vacancies
It is the City Council policy to advertise vacancies of the City Council advisory committees, Design Review Board, and Planning Commission on the City website for a minimum of 10 calendar days, and at least once in the Del Mar Weekly and/or through CivicSend eblast.
Upcoming vacancies may also be announced by the City Manager or Council Members at City Council meetings. The deadline for interested citizens to file a Citizen Interest Form (application) is by the close of business (4:30 p.m.) on a Friday.
B. Council Appointments to City Council Advisory Committees
1. It shall be the policy of the City Council to direct its liaisons to each Council advisory committee to make recommendations to the full Council regarding appointments to City Council advisory committees.
2. If by the application deadline, the number of applications received by the City for such committees is equal to the number of vacancies, or less than the number of vacancies when recruiting for multiple vacancies, the Council liaisons to the specific committee shall determine whether to extend the deadline or review the Citizen Interest Form(s) and/or interview the applicant(s), and make a recommendation to Council that the applicant(s) be appointed to serve on the committee.
3. If by the application deadline, the number of applications received by the City for such committees is more than the number of vacancies, then the Council liaisons to the specific committee shall review the Citizen Interest Forms and/or interview the applicant(s). Council liaisons shall then make a recommendation to Council as to which applicant(s) should be appointed to serve on the committee. If the Council liaisons determine the applicants are not qualified or do not meet the needs of the committee, the application period may be reopened by the Council liaisons in order to solicit additional interest.
4. If the Council liaisons to a committee cannot agree on a recommendation for appointment(s), they shall direct staff to prepare an agenda report for the next available City Council meeting where the City Council will vote on the appointment without discussion. Three affirmative votes are needed in order for the City Council to make an appointment. If an applicant does not receive the necessary votes, the Council may re-vote or may direct staff to reopen the vacancy to solicit additional interest. 19 March 3, 2026 Item 10
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5. Applicants nominated to serve on a Council advisory committee are encouraged, but not required, to attend the City Council meeting when the City Council is scheduled to consider their appointment to serve on the Committee.
6. In the event that there is only one Council liaison to an advisory committee, the Mayor will act as the second Council liaison for the purposes of reviewing Citizen Interest Forms to recommend to the City Council for appointment.
7. Prior to the City Council meeting where the Council will vote on an appointment, any Council member can request an un-redacted copy of all qualified Citizen Interest Forms in order to review applicant information and contact interested applicant(s) prior to the meeting if so desired.
8. In accordance with Del Mar Municipal Code Chapter 2.30 “Commissions, Boards and Committees: General Provisions”, it shall be the City Council’s policy to select for appointment the candidates who received three affirmative votes by the City Council. In the case where a candidate does not receive three affirmative votes, the Council may revote or direct the City Clerk to re-advertise the vacancy.
9. When there are open vacancies for City Council advisory committees, other than Planning Commission or Design Review Board, the City Clerk will bring forward to the City Council the names of the candidates, the number of vacancies, and the liaison recommendation(s).
The City Council will then vote on the recommendation to fill the vacancies. When the Council liaisons to a committee agree on a recommendation for appointment, the item will be included on the consent calendar. When the Council liaisons to a committee do not agree on the recommendation for appointment, the item will be brought forward as a Council Business item as described in Section B(4) of this policy.
10. If the spouse or significant other of a City Council member is an applicant to fill a vacancy on an advisory committee, the City Council member must recuse themselves from voting on that appointment.
C. Council Appointments to the Design Review Board and Planning Commission
1. The City Council shall make appointments to the Planning Commission and Design Review Board in accordance with the membership requirements of Chapter 2.34 “Planning Commission” and 2.38 “Design Review Board” of the Del Mar Municipal Code, respectively.
20 March 3, 2026 Item 10
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2. It shall be the policy of the City Council to hold interviews for appointments to the Planning Commission and Design Review Board only when applications received for such commission or board exceed the number of vacancies.
3. Interviews shall be public and televised as part of the City Council meeting.
4. If, by the application deadline, the number of applications received by the City for such board or commission equals or is less than the number of vacancies, then there shall be an automatic extension of time to accept applications.
5. Prior to the City Council meeting where the Council will vote on an appointment, an un-redacted copy of all qualified Citizen Interest Forms will be provided to the full City Council in order to allow the full Council to review applicant information and contact interested applicant(s) prior to the meeting if so desired.
6. In accordance with Del Mar Municipal Code Chapter 2.30 “Commissions, Boards and Committees: General Provisions”, it shall be the City Council’s policy to select for appointment the candidates who received three affirmative votes by the City Council. In the case where a candidate does not receive three affirmative votes, the Council may re-vote or direct the City Clerk to re-advertise the vacancy.
7. When there are advertised vacancies for Planning Commission or Design Review Board, the City Clerk will bring forward to the City Council the names of the candidates and the number of vacancies. After interviewing candidates in a public forum, the City Council will vote on the candidates to fill the vacancies. The City Clerk will read aloud the vote of each Council member.
8. Because of conflicts of interest which might exist, or which might give the appearance to the public of existing, and in order to preserve public confidence in the City’s vital planning processes and avoid questions of fairness and bias, prejudice or influence, the immediate family member of a City Council member, Design Review Board Member or Planning Commissioner may not serve or be appointed to serve simultaneously on the Design Review Board or Planning Commission. For purposes of this policy, immediate family member is defined as an individual’s parent, child, spouse, significant other, or sibling.
9. In accordance with Section C(8) of this policy, should an immediate family member of a Design Review Board Member or Planning Commissioner be elected to serve on the City Council, said Board Member or Commissioner shall be required to resign from their position no later than the day prior to the day the City Council member’s term of office commences.
21 March 3, 2026 Item 10
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D. City Advisory Committee Membership Categories
1. Subject to the membership limits set forth in Section E(6) of this policy, the City Council liaisons to the Sustainability Advisory Committee (SAC) may designate one (1) additional seat for an ex-officio member in the committee’s charter and direct staff to fill the vacancy in accordance with this policy, when desired by the SAC Council liaisons. Ex-officio members are non-voting subject matter experts who may be residents or non-residents.
2. Subject to the membership limits set forth in Section E(6) of this policy, the City Council may designate membership categories for business representatives in a committee’s charter. Business representation is preferred but shall not be a requirement for any member. Business representatives are business owners or operators whose business has a physical entity within the City of Del Mar and who have a current City of Del Mar business license.
E. Concurrent Committee Assignments, Term Limits and Length, Membership Size and Rotation of Chair and Vice Chair
1. It shall be the policy of the City Council to limit the number of concurrent appointments that any one individual has to City Council advisory committees, Design Review Board, and Planning Commission. The limit of concurrent appointments shall be two. If an individual has two concurrent appointments, they will not be eligible to serve on ad hoc committees, except in special circumstances as determined by the Council or Council liaisons.
2. The number of consecutive terms an individual may serve on a committee is two, as further described in Section E(5) below. However, the City Council has the flexibility to make an exception if they feel it is to the benefit of the committee to re-appoint an individual for a third term. Committee members who would like to continue to serve another term once their appointed term has expired must re-apply by filing a Citizen Interest Form prior to the advertised deadline for applications. Former committee members must wait one year from the expiration of their second consecutive term before being appointed to the same committee.
3. The term length for all City Council advisory committees shall be three years. Terms will expire on the last day of the month.
4. The term length for voting members of the Planning Commission and Design Review Board shall be four years, in accordance with Del Mar Municipal Code Sections
2.34.020 and 2.38.020, respectively. The term length for ex-officio members on the 22 March 3, 2026 Item 10
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Design Review Board shall be two years, in accordance with Del Mar Municipal Code Section 2.38.020.
5. In order to ensure that terms remain appropriately staggered, individuals appointed to fill an unexpired vacancy shall finish the remainder of the term of the vacating committee member. If the balance of the vacant term is less than six (6) months, it shall not count as a term towards the two-consecutive-term limit.
6. With the exception of the Undergrounding Program Advisory Committee, all other City advisory committees have a maximum committee membership of five (5) total voting members at the recommendation of the committee’s Council liaisons and approval of the full City Council. If a committee membership size is to be reduced via attrition, attrition shall not affect members who complete their first term and are eligible and wiling to serve a second term. However, such members must be recommended for reappointment by the committee’s Council liaisons, and their reappointment shall be confirmed by the full Council at a Council meeting.
7. It shall be the policy of the City Council that the members of each advisory committee appoint a chair, vice chair and secretary at the last meeting of the calendar year, with the new chair serving at the first meeting of the new year, and that these positions rotate annually among all the committee members. It is recommended that the vice chair assist with committee responsibilities and provide for a succession plan for chairing the committee. In the event a committee does not have volunteers to serve as chair and vice chair, then the committee has the flexibility to allow consecutive appointments to the chair/vice chair or secretary positions, i.e. rotation of such positions among the members is not required if there are no volunteers to serve in those positions. At the discretion of the committee, the vice chair and secretary positions may be filled by the same committee member.
8. It shall be the policy of the City Council that the members of the Design Review Board and Planning Commission appoint a chair and vice chair at the last meeting of the calendar year, with the new chair serving at the first meeting of the new year, and that the these positions should rotate annually among all the members. The functions of a secretary for the Design Review Board and Planning Commission, such as preparing minutes, will be managed by City staff.
F. Incumbents to Serve Until New Appointments Confirmed It shall be the policy of the City Council to allow an incumbent on a City Council advisory committee, Design Review Board, or Planning Commission, whose term has expired to 23 March 3, 2026 Item 10
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continue to officially serve until the vacancy is filled or three months has passed, whichever occurs sooner.
G. Attendance Policy for Boards, Commissions, and Committees In accordance with Del Mar Municipal Code Chapter 2.30, if a member of a City advisory committee, Design Review Board, or Planning Commission is absent from three regular, adjourned, or special meetings within a 12-month period without cause, the term of said member is automatically vacated. Council liaisons to the commission, board, or committee shall determine whether the absence was for cause. If an advisory committee, which does not include the Design Review Board or Planning Commission, does not have two Council liaisons, then the Mayor and the Deputy Mayor shall act as liaisons to that commission, board, or committee for this purpose. If the liaisons do not agree about whether the absences were without cause so as to warrant removal, the item will be presented to the full City Council to make the determination.
H. Formation and Dissolution of Boards, Commissions, and Committees
1. New committees must be formed by Resolution of the City Council and must include a committee charter detailing, the committee mission/purpose, type of committee (standing or ad-hoc), membership requirements, conflict of interest requirements, and open meeting requirements.
2. If the newly formed committee is an ad-hoc committee, the Resolution and charter should include a sunset date. The sunset date can be extended by Council action, if necessary.
3. Committees may be dissolved by Resolution of the City Council at any time or during the annual review of the City Council Local Appointments. Ad hoc committees shall automatically be dissolved on their sunset date unless extended in advance by the City Council.
I. City Council Review of City Board, Commission, and Committee System At least every four (4) years the City Council shall establish a subcommittee or alternative process to review the City’s boards, commission and committee system to provide recommendations to improve committee efficiencies to the City Council. However, the City Council may, in its discretion, elect to review the City’s boards, commission and committee system outside of the four (4) year review as it deems necessary. 24 March 3, 2026 Item 10
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:
TO: Honorable Mayor and City Councilmembers
FROM: Nicole Morrow, AICP, Associate Planner
Amanda Lee, Principal Planner
Karen Brindley, Planning and Community Development Director Via Ashley Jones, City Manager
DATE: March 3, 2026
SUBJECT: Authorization to Submit 2025 Housing Element Annual Progress Report
REQUESTED ACTION/RECOMMENDATION
Staff recommends the City Council authorize submittal of the City of Del Mar’s (City) 2025 Housing Element Annual Progress Report (APR) (Attachment A) to the State Department of Housing and Community Development (HCD) and Governor’s Office of Land Use and Climate Innovation (LCI).
EXECUTIVE SUMMARY:
The City is in its 6th Housing Element Cycle (6th Cycle) covering years 2021-2029. The current APR report has Regional Housing Needs Allocation (RHNA) data for 2025, and includes the following key milestones:
Description Target Progress 6th Cycle Housing Element (HE) Progress 20201-2025 RHNA Unit
Production
175
units
73%
complete
Cumulative total 127 units produced for 6
th Cycle:
• 49 above-moderate income (met 31-unit requirement)
• 78 moderate-income units (met 31-unit requirement)
Accessory
Dwelling Unit
(ADU)
Production
100
total
120%
complete
Cumulative total 120 ADUs, including 14 ADUs in 2025:
• 42 above-moderate income units produced
• 78 moderate-income units produced
• 0 lower income ADUs - HE target is to create 15 low income ADUs through incentives
40 above
mod
105%
complete
45 mod
173%
complete
15 low -
Applications N/A 18 permit applications for net-new units submitted in 2025 Building
permits in 2025 N/A Building permits were issued for 14 net-new units in 2025 • Income level: 3 above-moderate and 11 moderate-income Pending
Building
Permits
N/A
Pending building permit approvals for additional 73 units:
• 15 ADU applications
• Multi-unit housing: Watermark (50 units) & 941 CDM (8 units) HE Programs 45 20 completed, 9 underway, 15 ongoing; 1 not implemented Footnote 1. All units issued building permits as of June 30, 2020, count toward 6th Cycle RHNA. 1 March 3, 2026 Item 11
City Council Agenda Report
Submittal of 2025 Housing Element APR
March 3, 2026
BACKGROUND:
State law (Government Code Section 65400) requires all local jurisdictions in California to annually report on HE progress in terms of housing production to meet RHNA and HE program implementation. Each year the City is required to prepare an APR in accordance with the State’s guidelines and standard templates and present the APR to the City Council prior to submitting it to HCD and LCI by April 1. The APR generally includes:
• Summary of submitted development applications and completed entitlements; • Data representing the “net-new dwelling units” produced to meet the City’s assigned 6th Cycle RHNA, which includes any proposed units that would be an addition to the existing housing stock, and does not include approval of replacement units (e.g., the demolition and rebuilding of a single unit);
• Evaluation of how the City’s progress compares to the adopted objectives; and • Identification of HE programs status with more detailed reporting required by HCD for the 2025 report highlighting programs HCD considers critical to HE compliance.
Overall, the City continues to make progress in terms of housing production and implementation of HE programs. Refer to Table C below for details on the City’s RHNA progress. • The City’s total 6th Cycle housing unit obligation is 175 units. This includes 12 low-income carryover units from the 5th Cycle in addition to the assigned 163 RHNA units, which includes 31 above moderate-income units, 31 moderate-income units, 64 low-income units, 19 very low-income units, and 18 extremely low-income units. • The State began counting unit production towards the City’s 6th Cycle unit obligation based on building permits issued as of June 30, 2020. The City has issued a building permit or certificate of occupancy for 127 net-new units (June 30, 2020 - December 31, 2025) and will continue to produce new units towards the 6th Cycle through 2029. • Consistent with prior years in the 6th Cycle, new units produced in 2025 are within the above moderate- and moderate-income categories and primarily are new ADUs.
Production of lower income units has been a challenge even though the City has implemented a variety of HE strategies to produce at least 113 lower income units, which includes a combination of low-income, very low-income, and extremely low-income units. • The City prepared a Mid Cycle ADU Production Evaluation Report in accordance with HE Program 2E that was focused on ADU production and affordability levels and was presented to the City Council on September 8, 2025. In 2026, the City Council will consider what additional measures should be pursued to facilitate the production of lower income units. This will include consideration of potential updates to the existing ADU amnesty and incentive programs and new incentives that can be applied to encourage owners to deed restrict their units for rental to low-income households. 2 March 3, 2026 Item 11
City Council Agenda Report
Submittal of 2025 Housing Element APR
March 3, 2026
The challenges experienced in production of lower income units are common with other jurisdictions statewide and relate to factors that are beyond the City’s control. This includes market conditions, high cost of land, construction, materials and labor, and limited resources that collectively are an impediment to the production of lower income housing units. However, the City has continued its good faith efforts to develop incentive programs, invest local resources, pursue grant funding, seek partnerships, and pursue capital projects to build lower income housing.
The City was awarded Housing Acceleration Program (HAP) grant funds (Cycles 1 and 2) from HCD and San Diego Association of Governments (SANDAG) that facilitated the following:
• Completion of Phase I studies in June 2022 and April 2023, identifying architectural concepts and financial feasibility information that demonstrated feasibility of affordable housing development for various development scenarios (i.e., senior housing or family housing) on at least two sites on the State Fairgrounds property and two smaller affordable housing projects for lower income households on two vacant City-owned lots on 10th Street within the Del Mar Civic Center complex and 28th Street in the North Beach neighborhood. • Completion of Phase II studies in January 2023, identifying architectural concepts and financial feasibility information for privately-owned properties demonstrating the feasibility of affordable housing development applicable to privately-owned sites in the North Commercial Zone and Professional Commercial Zone identified in the HE sites inventory as well as for additional opportunity sites not relied upon for the 6th Cycle HE including a vacant site in the Central Commercial Zone.
• Completion of an Objective Design Standards Manual and Objective Design Standards Ordinance were adopted by the Council in September 2024. • Completion of various task orders for due diligence studies and conceptual design plans through August 2026 to facilitate development of at least 61 lower income affordable housing units on the Fairgrounds property by 2031 consistent with the executed agreement between the City and 22nd District Agricultural Association (22nd DAA) and executed HAP grant agreements between the City of Del Mar and SANDAG (in consultation with HCD).
• Preparation and processing of supportive housing-related ordinances that relate to affirmatively furthering fair housing objectives and other programs to facilitate lower income unit production.
The City has been coordinating with HCD on implementation of HE Program 3B that intends to build up to eight lower income units on the City-owned 10th Street lot. On February 17, 2026, the City Council adopted a Resolution to declare the small, vacant lot in the Del Mar Civic Center as exempt surplus land in accordance with the Surplus Lands Act and authorized the City Manager to file the Resolution with HCD. The City is processing the next steps consistent with HCD Guidance and State law including special notices of the City’s intent to lease surplus property, preparation of a Request for Proposals (RFP) to solicit an affordable housing project proposal, selection of a developer, and additional steps to build affordable housing and execute a lease agreement, all in coordination with HCD.
3 March 3, 2026 Item 11
City Council Agenda Report
Submittal of 2025 Housing Element APR
March 3, 2026
DISCUSSION/ANALYSIS:
APRs must be completed via the HCD-required Excel worksheet template, which HCD reviews and posts in the Housing Element Implementation Database on their website at:
https://www.hcd.ca.gov/community-development/housing-element/index.shtml.
The current APR (Attachment A) includes reporting for Submitted Housing Development Applications (Tab A), Housing Production Progress (Tab A2), Permitted Units by Affordability (Tab B), Housing Element Program Implementation Reporting (Tab D), and reporting of 10th Street site as a “Locally Owned Surplus Site” (Tab H), and reporting of historical resources on a national, state, or local registries of historic places (Tab L).
Below is a summary of the data provided in the worksheet. Other worksheet sections were intentionally left blank where the City has no responsive data including: “sites identified or rezoned to accommodate shortfall need,” “commercial development bonus,” “rehabilitated units,” “conversion of above moderate-income units to moderate income units,” “student housing,” or “tenant preference policy,” and “Local Early Action Planning (LEAP)” reporting.
1. New Housing Applications (Tab A)
The City is required to report all complete applications received for “net-new” housing units in the calendar year. In 2025, the City received 18 applications for net-new units, all of which were requests for ADUs. Table A below includes the 18 ADU applications in-process that have not yet been issued building permits. The table identifies projected unit capacity and income level for each application as a look ahead to what may be counted toward the 6th Cycle RHNA in a future APR once a building permit or certificate of occupancy is issued.
To determine which units would apply to the above-moderate or moderate-income categories, the City considered the size of the ADU and typical rent for comparable housing options in the community. For the purpose of this report, staff assumed units 800 square feet and smaller in size could be rented at more affordable rates in the moderate-income household category consistent with existing housing trends and larger units would likely have higher rents for above moderate-income households.
Table A - Applications In-Process & Projected RHNA Contribution New Applications
in 2025
Address Projected RHNA
1 ADU23-030 122 24TH ST 1 moderate unit
2 ADU23-037 149 11TH ST 1 moderate unit
3 ADU24-009 1437 LUNETA DR 1 moderate unit
4 ADU24-012 1920 SANTA FE AVE 1 moderate unit
5 ADU24-013 491 PINE NEEDLES DR 1 above moderate unit
6 ADU24-015 507 15TH ST 1 above moderate unit
7 ADU24-017 2016 OCEAN FRONT 1 moderate unit
8 ADU25-001 2055 SEAVIEW AVE 1 moderate unit
9 ADU25-002 1823 COAST BLVD 1 moderate unit
10 ADU25-003 2040 OCEAN FRONT 1 moderate unit
11 ADU25-004 1431 STRATFORD CT 1 moderate unit
12 ADU25-007 432 CAROLINA RD 1 moderate unit
4 March 3, 2026 Item 11
City Council Agenda Report
Submittal of 2025 Housing Element APR
March 3, 2026
New Applications
in 2025
Address Projected RHNA
13 ADU25-009 507 VAN DYKE AVE 1 moderate unit
14 ADU25-013 483 AVENIDA PRIMAVERA 1 moderate unit
15 ADU25-017 2998 SANDY LN 1 above moderate unit
16 ADU25-018 126 6TH STREET1 1 moderate unit
17 ADU25-019 126 6TH STREET1 1 moderate unit
18 ADU25-014 1335 CREST RD1 1 moderate unit
Total RHNA Units in Process that are Anticipated to Count Toward the 6th Cycle Housing Element in Future APR
15 moderate;
3 above moderate
Footnote 1. Of the 18 applications, 15 were approved in 2025 and 3 are pending.
2. Housing Production Progress Report (Tab A2)
This report shows the progress of all active applications/projects with net-new housing unit(s).
For each unit reported, it identifies which household income affordability category applies:
very-low, low, moderate, and above-moderate-income. It also identifies whether the project received an entitlement, building permit, certificate of occupancy, or other form of project readiness during the reporting year. It is important to note that units do not count towards the City’s RHNA until a building permit is issued, or in circumstances where a building permit is not required (i.e., existing space converted an ADU or Junior ADU), when a certificate of occupancy is issued.
In 2025, building permits were issued for 14 net-new units as outlined in Table B below:
Table B - Housing Production Progress Toward 6th Cycle Housing Element Ref # Application
Building
Permit
Issuance Date
Address RHNA Credit
1 ADU23-014 12/23/2025 610 NOB AVE 1 above moderate
2 ADU23-015 12/23/2025 610 NOB AVE1 1 moderate
3 ADU23-023 05/21/2025 1215 CUCHARA DR 1 above moderate 4 ADU23-019 03/07/2025 1408 STRATFORD CT 1 moderate
5 ADU23-024 05/01/2025 636 RIMINI RD 1 moderate
6 ADU24-004 03/10/2025 461 ZUNI DR 1 moderate
7 ADU23-032 07/30/2025 1904 BALBOA AVE 1 moderate
8 ADU23-026 06/04/2025 642 HOSKA DR 1 moderate
9 ADU23-034 01/27/2025 326 LA AMATISTA RD 1 moderate
10 ADU22-041 03/12/2025 210 23RD ST 1 moderate
11 ADU25-007 12/12/2025 432 CAROLINA RD 1 above moderate 12 ADU23-017 10/22/2025 3004 SANDY LN 1 moderate
13 ADU25-002 09/08/2025 1823 COAST BLVD 1 moderate
14 ADU24-005 04/28/2025 234 10TH ST 1 moderate
Total Units Towards 6th Cycle RHNA 11 moderate;
3 above moderate
Footnote 1. Unit is a Junior ADU.
5 March 3, 2026 Item 11
City Council Agenda Report
Submittal of 2025 Housing Element APR
March 3, 2026
3. Permitted Units by Affordability Report (Tab B)
The City is required to show all units counted towards RHNA during the 6th Cycle HE planning period beginning June 30, 2020, through December 31, 2025, and annually through year 2029. The start date for counting RHNA toward the 6th Cycle was confirmed in written correspondence from HCD to SANDAG on July 21, 2020, (and additional HCD guidance materials) clarifying that within the San Diego region, local jurisdictions may take 6th Cycle RHNA credit for new units approved, permitted and/or built starting June 30, 2020.
Of note, there is an error in the pre-populated data for the APR Tab B, which does not accurately reflect the City’s prior 6th Cycle HE progress. HCD provides this information in a pre-populated worksheet for the City to enter its reporting data but does not allow the City to modify any pre-populated data. This explains why the pre-populated data indicating lower unit counts for prior years does not align with what the City previously reported. City staff has reported the issue to HCD every year when the APR is submitted and it remains uncorrected.
Staff conducted a mid-cycle audit of prior 6th Cycle APR reports and discovered errors that have been corrected in the current APR to reflect a net change of four new units as follows:
• Discovery of 4 units previously unreported to HCD as new unit production o 300 9th Street – building permits issued 2022
o 1408 Stratford Court – building permits issued 2024
o 207 13th Street – building permits issued 2024
o 820 Klish Way – building permits issued 2024
A cumulative total of 127 net-new units, permitted as of December 31, 2025, as corrected above, including 14 units issued building permits in 2025, contribute toward the 6th Cycle RHNA:
Table C – City of Del Mar 6th Cycle RHNA Obligation Status Income
Category
6 th Cycle
RHNA
Obligation
Units
Permitted
2020-2025
Entitled Units,
pending building
permits
(including ADUs,
941 CDM and
Watermark
projects)
Total Units
Approved
RHNA Units
Remaining
for 6th Cycle
Above
Moderate 31 49 49 98 None
Moderate 31 78 12 90 None
Low 76 0 8 8 68
Very/
Extremely Low 37 0 4 4 33
TOTAL 175 units 127 units 73 units 200 units
To date, the City has exceeded its RHNA obligation for above-moderate and moderate-income units and is continuing to produce housing units in these income categories. While no lower income units have been constructed for the 6th Cycle, the approved 8-unit 941 Camino del Mar 6 March 3, 2026 Item 11
City Council Agenda Report
Submittal of 2025 Housing Element APR
March 3, 2026
project and approved 50-unit Watermark project are entitled development projects that include 12 lower income units. The City also approved 15 ADU entitlements that are pending building permits. In anticipation of these pending building permit approvals for 73 units and building permits already issued for 127 units (July 2020 to December 2025), the City is on track to exceed the total 175-unit RHNA unit production target by the end of the 6th Cycle.
4. Sites Identified or Rezoned to Accommodate Shortfall (Tab C, Not Applicable) This section of the APR is used to report if the City identified an unaccommodated need of sites from a previous planning period or a shortfall of sites that require completion of a rezone action in the HE, or if a city has identified additional sites required by “no net loss” law pursuant to Government Code Section 65863.
No shortfalls have been identified; therefore, this section of the report is intentionally left blank.
5. Program Implementation Status Report (Tab D)
The City is required to provide a detailed status of all 45 HE programs. A summary status of the housing programs is provided in Table D below.
Table D - Status of Del Mar 2021-2029 Housing Element Programs Program Status Number of Programs Programs
Completed 20 1A, 1B, 1C, 1F, 1G, 1H, 1J, 1K, 2A, 2B, 2E, 2F, 4D, 4E, 5A, 5B, 5C, 6A, 6B, 6G
Ongoing Programs 15
2C, 2D, 4C, 6C, 6F, 7A, 7B, 7C, 7D, 7E, 7F,
7G, 7H, 7I, 7J
Underway 9 1D, 1I, 3A, 3B, 4A, 4B, 6D, 6E, 6H
Not Implemented 1 1E (contingency)
TOTAL 45
The following 20 programs have been completed:
• 1A and 1B Coastal Commission certification of Neighborhood Commercial (NC) and Professional Commercial (PC) Zones Local Coastal Program Amendments (LCPAs) to allow density increases to 20 dwelling units per acre
• 1C and 1H City Council and Coastal Commission approvals of density increases to allow 20 units per acre in Central Commercial (CC) Zone and Public Facilities (PF) Zones • 1F and 1G Adopted Manufactured Housing Ordinance and Density Bonus Ordinance • 1J Coordination with Housing Federation/Affordable Housing Developers • 1K Feasibility Studies for Infill Housing on Non-Vacant and Small Sites • 2A and 2B Adopted ADU Incentive Program and ADU Amnesty Program • 2E Mid Cycle ADU Evaluation
• 2F City Council and Coastal Commission approvals of ADU Ordinance update to specify process for approval of Tiny Homes
• 4D and 4E Adoption of Inclusionary Housing and Condo Conversion regulations • 5A City Council and Coastal Commission approval of Incentives to Preserve Existing Apartments/Condos and Create Affordable Units
• 5B Council Policy Requiring Housing Impact Statements in Agenda Reports 7 March 3, 2026 Item 11
City Council Agenda Report
Submittal of 2025 Housing Element APR
March 3, 2026
• 5C City Council and Coastal Commission approvals of ordinance with new Short Term Rental regulations intended to limit STRs, preserve housing stock, and reduce the City’s high vacancy rate
• 6A Posted Notice of SB 35 State Law Exemption for Coastal Cities • 6B City Council and Coastal Commission approval of Senate Bill 9 implementation regulations
• 6G Adopted Objective Design Standards
Two multi-year programs to develop affordable housing on public properties are underway as well as six regulatory programs that require City Council Resolutions or Ordinances in 2026:
• Affordable Housing on Fairgrounds Property (Program 3A): The City is currently working collaboratively with the Fairgrounds to complete site due diligence activities to develop affordable housing for lower income households on Fairgrounds property.
Significant State and local resources have been invested and milestones completed toward the pursuit of housing on Fairgrounds property. The State and SANDAG allocated $1.5 million in Housing Acceleration Program (HAP) grant funds (2024-2026) for due diligence studies to facilitate implementation of the Exclusive Negotiating Rights Agreement, HAP Grant agreement, and HE Program 3A. The findings of the studies and a conceptual development program will be presented to the 22nd DAA Board and City Council to facilitate discussions intended to reach a mutual agreement on a housing site location and lease agreement by November 2026. The City’s timeline for this project aligns with expectations in HCD’s letter of inquiry dated January 15, 2026.
• Affordable Housing on Vacant City-Owned Sites at 10th Street and 28th Street (Program 3B): The City completed studies in June 2022 demonstrating the feasibility of developing two vacant City-owned sites on 10th Street and 28th Street that are listed in the HE sites inventory. The City’s intent to develop 10th Street with affordable housing for lower income households is in process. The City Council adopted a Resolution on February 17, 2026, to determine the small, vacant lot in the Del Mar Civic Center is exempt surplus land that is intended to be leased for up to eight lower income housing units for at least 55 years. As a next step, the City will email a Notice of Availability for open space purposes to HCD, the California Resources Agency, and Coastal Commission in accordance with the Surplus Lands Act and will follow up with next steps in consultation with HCD (i.e., to solicit development interest and select a developer). Consistent with HE Program 3B, the City will also complete a similar process for the vacant 28th Street site to ensure building permits are issued by end of 2027 for a cumulative total of at least 7 lower income units for two City-owned sites. • New Environmental Justice (EJ) Element (Program 6E) and Safety Element Update (Program 6H) amendments to City of Del Mar Community Plan (General Plan): These Community Plan amendments are in process. After adopting the State’s Fire Hazard Severity Maps in June 2025 and adopting the State’s updated Building and Fire Codes in September 2025, the City received Board of Forestry approval for the proposed Safety Element update in November 2025. Drafts of the Safety Element and EJ Element were posted and circulated for public review in December 2025. 8 March 3, 2026 Item 11
City Council Agenda Report
Submittal of 2025 Housing Element APR
March 3, 2026
Planning Commission recommendations for approval were provided on January 13, 2026 (Safety Element) and February 10, 2026, (Environmental Justice Element). City Council adoption is anticipated in April 2026.
• Reasonable Accommodations, Residential Care Facilities, Emergency Shelters, Transitional Housing, Supportive Housing, Singe Room Occupancy, and Low Barrier Navigation Center Amendments (Programs 4A and 4B): Implementation of these programs is in process, which includes proposed amendments to the City’s Zoning Code and certified Local Coastal Program. City staff prepared initial drafts but had to defer processing due to limited resources and other competing priority items with more immediate deadlines. The Planning Commission recommendation hearing is anticipated to occur by July 2026, City Council consideration of approval through hearings as part of the adoption process in September 2026, and the Coastal Commission certification process to follow.
• Affordable Housing Overlay Zone/Site-Specific Incentives (Programs 1D and 1I):
Architectural concepts and economic studies were completed in January 2023 that demonstrated financial feasibility and development concept details as incentive for owners to develop affordable housing on each Housing Element (HE) site. Owners of five sites within the Neighborhood Commercial (NC) and Central Commercial (CC) Zones have expressed interest in pursuing potential housing projects. On October 20, 2025, the Council approved consultant work to complete additional visual concepts to show massing for density bonus scenarios to facilitate Council consideration of additional incentives and overlay zone for these sites. Presentation of the additional visual concepts and solicitation of Council direction is expected by June 2026, with a Planning Commission recommendation hearing planned for September 2026, City Council consideration of approval through public hearings as part of the Ordinance adoption process by December 2026, and the Coastal Commission certification process to follow. The City has programs in place to incentivize incorporation of lowincome units into existing multi-unit developments throughout the community (i.e., new ADUs or placement of income restrictions on existing units). Additional incentive opportunities discussed by City Council on September 8, 2025, as part of the ADU mid-cycle evaluation report will be considered with this effort. • Solar Panel Installation Partnership (Program 6D): In-process. This is identified as an implementation program action in the City’s adopted Climate Action Plan and the Housing Element. Staff is analyzing available programs through organizations like the Clean Energy Alliance or Center for Sustainable Energy to install solar on multi-unit, lower income housing to meet renewable energy goals in the Climate Action Plan. The intent is to implement this in coordination with development of lower income units. 9 March 3, 2026 Item 11
City Council Agenda Report
Submittal of 2025 Housing Element APR
March 3, 2026
HOUSING IMPACT STATEMENT:
The 2025 Housing Element APR shows the City issued building permits for 14 net-new units in calendar year 2025 and reached a cumulative target of 127 units, which moves the City closer to meeting its assigned total RHNA unit production target to produce at least 175 units. The new units produced were in the above-moderate income and moderate-income categories, which were satisfied in 2022 for moderate income RHNA and 2023 for above-moderate income units. The City will continue to its efforts on strategies to encourage production of all housing units, including lower income units to satisfy the RHNA targets for low-income, very low-income, and extremely low-income units. As identified above, multiple strategies to reach these targets are currently in process. The City has issued entitlements for 73 units (includes 15 ADUs and 58 units total for two affordable housing projects) that demonstrate the City is on track to meeting a portion of its lower income RHNA and exceeding its total number of units allocated.
FISCAL IMPACT:
There is no fiscal impact or fiscal action to be taken by the City Council related to this agenda item.
ENVIRONMENTAL IMPACT:
The proposed City Council action does not constitute a “project” under the definition set forth in California Environmental Quality Act (CEQA) Guidelines Section 15378 because it will not have a potential to result in a direct or indirect physical change in the environment and is, therefore, not subject to CEQA. No further action under CEQA is required.
NEXUS TO CITY COUNCIL GOALS AND PRIORITIES:
Processing of the Housing Element Annual Progress Report is an operational project that is required to be processed each year to comply with State law.
ATTACHMENT:
Attachment A – City of Del Mar 2025 APR
10 March 3, 2026 Item 11
Jurisdiction Del Mar ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Year 2025
(Jan. 1 - Dec.
31) Housing Element Implementation
Planning
Period 6th Cycle 04/30/2021 - 04/30/2029
Date
Application
Submitted
Total
Approved
Units by
Project
Total
Disapproved
Units by
Project
Streamlining Historic Sites Application
Status Project Type Notes
2 3 4 6 7 8 9 10 12 13 14
Prior APN+ Current APN Street Address Project Name+
Local
Jurisdiction
Tracking ID
Unit Category
(SFA,SFD,2 to
4,5+,ADU,MH)
Tenure
R=Renter
O=Owner
Date
Application
Submitted
(see
instructions)
Acutely LowIncome Deed
Restricted
Acutely LowIncome Non
Deed
Restricted
Extremely
Low-Income
Deed
Restricted
Extremely
Low-Income
Non Deed
Restricted
Very LowIncome
Deed
Restricted
Very LowIncome
Non Deed
Restricted
LowIncome
Deed
Restricted
Low-Income
Non Deed
Restricted
ModerateIncome Deed
Restricted
ModerateIncome
Non Deed
Restricted
Above
ModerateIncome
Total
PROPOSED
Units by
Project
Total
APPROVED
Units by
project
Total
DISAPPROVE
D Units by
Project
Please select
state
streamlining
provision/s the
application was
submitted
pursuant to.
Is this project
located on a
site with an
associated
historical
designation as
outlined in
Government
Code Section
65400(a)(2)(N)
and reported on
Table L?
Did the
housing
development
application
seek
incentives or
concessions
pursuant to
Government
Code section
65915?
Were
incentives or
concessions
requested
pursuant to
Government
Code section
65915
approved?
Please
indicate the
status of the
application.
Is the project
considered a
ministerial
project or
discretionary
project?
Notes+
Summary Row: Start Data Entry Below 0 0 0 0 0 0 0 0 0 15 3 18 15 0 299-095-05-00 122 24TH ST ADU23-030 ADU23-030 ADU O 5/29/2025 1 1 1 NONE No No No Approved Ministerial 300-094-07-00 149 11TH ST ADU23-037 ADU23-037 ADU O 12/18/2025 1 1 1 NONE No No No Approved Ministerial 300-030-79-00 1437 LUNETA
DR ADU24-009 ADU24-009 ADU O 6/27/2025 1 1 1 NONE No No No Approved Ministerial 299-141-06-00 1920 SANTA
FE AVE ADU24-012 ADU24-012 ADU O 5/29/2025 1 1 1 NONE No No No Approved Ministerial 301-025-46-00 491 PINE
NEEDLES DR ADU24-013 ADU24-013 ADU O 8/4/2025 1 1 1 NONE No No No Approved Ministerial 300-030-25-00 507 15TH ST ADU24-015 ADU24-015 ADU O 6/27/2025 1 1 1 NONE No No No Approved Ministerial 299-136-09-00 2016 OCEAN
FRONT ADU24-017 ADU24-017 ADU O 6/6/2025 1 1 1 NONE No No No Approved Ministerial 299-173-28-00 2055 SEAVIEW
AVE ADU25-001 ADU25-001 ADU O 1/27/2025
1 1 1 NONE No No No Approved Ministerial
299-144-12-00 1823 COAST
BLVD ADU25-002 ADU25-002 ADU O 3/3/2025 1 1 1 NONE No No No Approved Ministerial 299-136-16-00 2040 Ocean
Front ADU25-003 ADU25-003 ADU O 3/5/2025 1 1 1 NONE No No No Approved Ministerial 300-012-05-00
1431
STRATFORD
CT
ADU25-004 ADU25-004 ADU O 3/18/2025
1 1 1 NONE No No No Approved Ministerial
300-030-60-00 432 CAROLINA
RD ADU25-007 ADU25-007 ADU O 4/3/2025
1 1 1 NONE No No No Approved Ministerial
300-030-57-00 507 VAN DYKE
AVE ADU25-009 ADU25-009 ADU O 4/18/2025 1 1 1 NONE No No No Approved Ministerial 299-290-04-00 483 AVENIDA
PRIMAVERA ADU25-013 ADU25-013 ADU O 7/17/2025 1 1 1 NONE No No No Approved Ministerial 299-020-44-00 2998 SANDY
LN ADU25-017 ADU25-017 ADU O 9/29/2025 1 1 1 NONE No No No Approved Ministerial 300-182-11-00 126 6TH ST ADU25-018 ADU25-018 ADU O 11/12/2025 1 1 NONE No No No Pending Ministerial 300-182-11-00 126 6TH ST ADU25-019 ADU25-019 ADU O 11/5/2025 1 1 NONE No No No Pending Ministerial 300-060-20-00 1335 CREST
RD ADU25-014 ADU25-014 ADU O 7/17/2025 1 1 NONE No No No Pending Ministerial Table A
Cells in grey contain auto-calculation formulas
1 5
Project Identifier Unit Types Density Bonus Law
Applications
11 Housing Development Applications Submitted
Proposed Units - Affordability by Household Incomes
11 March 3, 2026 Item 11
Jurisdiction Del Mar ANNUAL ELEMENT PROGRESS REPORT
Reporting Year 2025
(Jan. 1 - Dec.
31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning
Period 6th Cycle 04/30/2021 - 04/30/2029
Table A2
2 3 5 6 8 9
Prior APN+ Current APN Street Address Project Name+
Local
Jurisdiction
Tracking ID
Unit
Category
(SFA,SFD,2 to
4,5+,ADU,MH)
Tenure
R=Renter
O=Owner
Acutely LowIncome Deed
Restricted
Acutely LowIncome Non
Deed
Restricted
Extremely
Low- Income
Deed
Restricted
Extremely
Low- Income
Non Deed
Restricted
Very LowIncome Deed
Restricted
Very LowIncome Non
Deed
Restricted
LowIncome
Deed
Restricted
Low- Income
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Entitlement
Date Approved
# of Units
issued
Entitlements
Acutely
LowIncome
Deed
Restricted
Acutely
LowIncome
Non Deed
Restricted
Extremely
LowIncome
Deed
Restricted
Extremely
LowIncome
Non Deed
Restricted
Very LowIncome
Deed
Restricted
Very LowIncome
Non Deed
Restricted
LowIncome
Deed
Restricted
LowIncome
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Building
Permits Date
Issued
# of Units Issued
Building Permits
Acutely
LowIncome
Deed
Restricted
Summary Row: Start Data Entry Below 0 0 0 0 0 0 0 0 0 8 1 9 0 0 0 0 0 0 0 0 0 11 3 14 0 300-234-07-00 610 NOB AVE ADU23-014 B2023-0286 ADU O 0 1 12/23/2025 1 300-234-07-00 610 NOB AVE ADU23-015 B2023-0287 ADU O
0 1 12/23/2025 1
300-390-11-00 1215 CUCHARA
DR ADU23-023 B2023-0308 ADU O 0
1 5/21/2025 1
300-011-15-00 1408 STRATFORD
CT ADU23-019 B2024-0071 ADU O
0 1 3/7/2025 1
300-143-24-00 636 RIMINI RD ADU23-024 B2024-0309 ADU O
0 1 5/1/2025 1
299-280-23-00 461 ZUNI DR ADU24-004 B2024-0345 ADU O
0 1 3/10/2025 1
300-093-13-00 234 10TH ST ADU24-005 B2024-0346 ADU O
0 1 4/28/2025 1
299-174-04-00 1904 BALBOA
AVE ADU23-032 B2024-0362 ADU O
0 1 7/30/2025 1
299-092-16-00 210 23RD ST ADU22-041 B2024-0503 ADU O
0 1 3/12/2025 1
0 0
299-020-43-00 3004 SANDY LN ADU23-017 B2025-0180 ADU O
0 1 10/22/2025 1
300-030-60-00 432 CAROLINA
RD ADU25-006 B2025-0236 ADU O 0
1 12/12/2025 1
300-390-09-00 545 RIMINI RD ADU22-023 B2022-0328 ADU O
0 0
301-024-26-00 339 HIDDEN
PINES RD ADU22-021 B2023-0007 ADU O 0
0 299-142-08-00 1921 SANTA FE
AVE ADU22-0A09 B2023-0056 ADU O 0
0 301-023-08-00 157 OCEAN VIEW
AVE ADU22-037 B2023-0057 ADU O 0
0 301-024-03-00 334 HIDDEN
PINES RD ADU22-020 B2023-0093 ADU O 0
0 300-182-14-01 127 7TH ST ADU22-030 B2023-0116 ADU O 0 0 300-272-20-00 711 HOSKA DR ADU22-018 B2023-0132 ADU O
0 0
300-251-15-00 810 KLISH WAY ADU22-012 B2023-0144 ADU O
0 0
300-233-04-00 629 NOB AVE ADU23-007 B2023-0173 ADU O 0 0 300-030-52-00 565 VAN DYKE
AVE ADU22-034 B2023-0225 ADU O 0
0 300-251-14-00 820 KLISH WAY ADU22-040 B2023-0272 ADU O 0 0
300-410-13-00 511 11TH ST ADU23-027 B2024-0008 ADU O
0 0
300-071-07-00 1310 OCEAN AVE ADU21-030 B2024-0090 ADU O 0 0
299-260-48-00 505 AVENIDA
PRIMAVERA ADU22-004 B2024-0239 ADU O
0 0
300-251-28-00 642 HOSKA DR ADU23-026 B2024-0452 ADU O
0 1 6/30/2025 1
300-234-09-00 326 LA AMATISTA
RD ADU23-034 B2024-0466 ADU O
0 1 9/19/2025 1
299-144-12-00 1823 COAST
BLVD ADU25-002 B2025-0079 ADU O
0 1 12/10/2025 1
299-095-05-00 122 24TH ST ADU23-030 ADU23-030 ADU O 1 10/19/2023 1 0
300-094-07-00 149 11TH ST ADU23-037 ADU23-037 ADU O 1 12/21/2023 1 0
300-030-79-00 1437 LUNETA DR ADU24-009 ADU24-009 ADU O 1 7/8/2024 1 0
299-141-06-00 1920 SANTA FE
AVE ADU24-012 ADU24-012 ADU O 1 9/5/2024
1 0
301-025-46-00 491 PINE
NEEDLES DR ADU24-013 ADU24-013 ADU O 1 10/1/2024 1
0 300-030-25-00 507 15TH ST ADU24-015 ADU24-015 ADU O 1 10/14/2024 1 0 299-136-09-00 2016 OCEAN
FRONT ADU24-017 ADU24-017 ADU O 1 6/6/2025
1 0
299-173-28-00 2055 SEAVIEW
AVE ADU25-001 ADU25-001 ADU O 1 1/27/2025
1 0
299-144-12-00 1823 COAST
BLVD ADU25-002 ADU25-002 ADU O 1 3/3/2025
1 0
299-136-16-00 2040 Ocean Front ADU25-003 ADU25-003 ADU O 1 3/5/2025 1 0
300-012-05-00 1431 STRATFORD
CT ADU25-004 ADU25-004 ADU O 1 3/18/2025
1 0
300-030-60-00 432 CAROLINA
RD ADU25-007 ADU25-007 ADU O 1 4/3/2025
1 0
300-030-57-00 507 VAN DYKE
AVE ADU25-009 ADU25-009 ADU O 1 4/18/2025
1 0
299-290-04-00 483 AVENIDA
PRIMAVERA ADU25-013 ADU25-013 ADU O 1 7/17/2025
1 0
299-020-44-00 2998 SANDY LN ADU25-017 ADU25-017 ADU O 1 9/29/2025 1 0 Note: "+" indicates an optional field
Project Identifier
Annual Building Activity Report Summary - New Construction, Entitled, Permits and Completed Units 1 Unit Types Affordability by Household Incomes - Completed Entitlement Affordability by Household Incomes - Building Permits 4 7
12 March 3, 2026 Item 11
Streamlining Historic Sites Infill
Housing without
Financial Assistance or
Deed Restrictions
Term of
Affordability or
Deed Restriction
Notes
11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Acutely
LowIncome Non
Deed
Restricted
Extremely
LowIncome
Deed
Restricted
Extremely
LowIncome Non
Deed
Restricted
Very LowIncome
Deed
Restricted
Very LowIncome
Non Deed
Restricted
LowIncome
Deed
Restricted
LowIncome
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Certificates of
Occupancy or other
forms of readiness
(see instructions)
Date Issued
# of Units
issued
Certificates
of Occupancy
or other
forms of
readiness
Please select the
state
streamlining
provision the
project was
APPROVED
pursuant to.
(may select
multiple)
Is this project
located on a site
with an
associated
historical
designation as
outlined in
Government
Code Section
65400(a)(2)(N)
and reported on
Table L?
Infill Units?
Y/N+
Assistance
Programs for Each
Development
(may select
multiple - see
instructions)
Deed Restriction
Type
(may select
multiple - see
instructions)
For units affordable
without financial
assistance or deed
restrictions, explain how
the locality determined the
units were affordable
(see instructions)
Term of Affordability
or Deed Restriction
(years) (if affordable
in perpetuity enter
1000)+
Number of
Demolished/Destro
yed Units
Demolished
or Destroyed
Units
Demolished/
Destroyed
Units
Owner or
Renter
Total Density Bonus
Applied to the Project
(Percentage Increase in
Total Allowable Units or
Total Maximum
Allowable Residential
Gross Floor Area)
Number of Other
Incentives,
Concessions,
Waivers, or Other
Modifications
Given to the Project
(Excluding Parking
Waivers or Parking
Reductions)
List the
incentives,
concessions,
waivers, and
modifications
(Excluding
Parking Waivers
or Parking
Modifications)
Did the project
receive a reduction or
waiver of parking
standards? (Y/N)
Notes+
0 0 0 0 0 0 0 0 10 7 17 0
0 NONE No Y
0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
1 1/20/2025 1 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
1 3/3/2025 1 NONE No Y
1 7/28/2025 1 NONE No Y
1 3/4/2025 1 NONE No Y
1 7/8/2025 1 NONE No Y
1 4/21/2025 1 NONE No Y
1 6/3/2025 1 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
1 3/26/2025 1 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
1 4/1/2025 1 NONE No Y
1 2/22/2025 1 NONE No Y
1 5/28/2025 1 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
1 2/18/2025 1 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
1 2/12/2025 1 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
1 12/17/2025 1 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
1 6/30/2025 1 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
1 9/19/2025 1 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
1 12/10/2025 1 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
0 NONE No Y
0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
Assumed moderate-affordable
based on smaller size of ADU and
comparable rantal rates
0 NONE No Y
Housing with Financial Assistance
and/or Deed Restrictions Affordability by Household Incomes - Certificates of Occupancy Demolished/Destroyed Units Density Bonus 10 13 March 3, 2026 Item 11
Jurisdiction Del Mar ANNUAL ELEMENT PROGRESS REPORT
Reporting Year 2025 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 6th Cycle 04/30/2021 - 04/30/2029
1 Projection
Period 3 4
RHNA Allocation
by Income Level
Projection
Period -
06/30/2020-
04/29/2021
2021 2022 2023 2024 2025 2026 2027 2028 2029
Total Units to
Date (all
years)
Total Remaining
RHNA by
Income Level
Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - - - - - - - - -
Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - - - - - - - - -
Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - - - - - - - - -
Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - - - - - - - - -
Deed Restricted - - - - - - - - - -
Non-Deed Restricted 15 8 15 15 11 11 - - - -
Above Moderate 31 5 6 11 12 9 3 - - - - 46 -
163
20 14 26 27 20 14 - - - - 121 101
Please note: The APR form can only display data for one planning period. To view progress for a different planning period, you may login to HCD's online APR system, or contact HCD staff at [email protected].
Acutely Low - -
*For years prior to 2025, data on deed-restricted vs. non-deed restricted Extremely Low-Income units is approximated from whether the projects reported any deed-restricted Very Low-Income Units. If you wish to edit this historical data for accuracy or have any questions about the data, you may login to HCD's online APR system, or contact HCD staff at [email protected].
Total Units
*For jurisdictions that received RHNA determinations for the current cycle prior to the passage of AB 3093 (September 19, 2024):
- You were not allocated Acutely Low-Income and Extremely Low-Income RHNA targets, therefore the allocations in Field 1 are listed as "0" - If you wish to set your own targets in these income categories for informational purposes, contact HCD staff at [email protected]. - All Acutely Low-Income and Extremely Low-Income units reported during the cycle are counted towards Very-Low Income RHNA progress -
Total RHNA
-
64 Low
*For years prior to 2025, Acutely Low-Income units are reported within the Extremely Low-Income category Please Note: Table B does not currently contain data from Table F or Table F2 for prior years. You may login to the APR system to see Table B that contains this data.
Extremely Low -
75 Moderate
37 64
31 -
-
Income Level
Very Low
- -
This table is auto-populated once you enter your jurisdiction name and current year data. Past year information comes from previous APRs.
Please contact HCD if your data is different than the material supplied here 2 Table B
Regional Housing Needs Allocation Progress
Permitted Units Issued by Affordability
37 14 March 3, 2026 Item 11
Jurisdiction Del Mar
Reporting Year 2025 (Jan. 1 - Dec. 31)
1 2 3 4 5 6 7 8 9
Name of Program Objective
Projected Completion
Date in Housing
Element
Applicable Cycle Status of Program
Implementation
Program
Implementation
Details
Quantified Outcomes:
Category
Quantified Outcomes:
Count Supporting Documents
1A North Commercial
Finalize Coastal Commission certification of
local approvals gained during 5th Cycle to
allow 20 du/ac on select parcels
(Ordinance/LCPA)
June 2022 (for CCC
certification) 6th Cycle Completed
Complete. City Council
accepted CCC modifications
by LCPA/Ordinance No. 987
adopted by City Council
March 21, 2022. Obtained
Coastal Commission final
certification June 2022.
Units 32
Item 4 in 3/31/2022 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_03212022-2948
Outcome reflects lower income unit targets
1B Professional
Commercial
Finalize Coastal Commission certification of
local approvals gained during 5th Cycle to
allow 20 du/ac on select parcels
(Ordinance/LCPA)
June 2022 (for CCC
certification) 6th Cycle Completed
Complete. City Council
accepted CCC modifications
by LCPA/Ordinance No. 987
adopted by City Council
March 21, 2022. Obtained
Coastal Commission final
certification June 2022.
Units 3
Item 4 in 3/31/2022 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_03212022-2948
Outcome reflects only lower income unit
targets
1C Central Commercial
(Task 1 of 2)
Amend the CC Zone to allow 20 du/ac
(Plan amendment and Ordinance/LCPA)
April 2024 (for Council
adoption) 6th Cycle Completed
Complete. City Council
adopted General Plan
Amendment via Resolution
No. 2024-12 and introduced
Ordinance and Local Coastal
Program Amendment on
April 1, 2024. Council
adopted LCPA/Ordinance
No. 1006 on April 15, 2024.
Units 34
Item 7 in 4/15/2024 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_04152024-3436
Outcome reflects capacity for 34 lower
income units on 21 sites
1C Central Commercial
(Task 2 of 2) Obtain Coastal Commission certification. Apr-25 6th Cycle Completed Complete. City Council
adopted April 15, 2024.
Coastal Commission
conditionally certified
February 6, 2025 and
granted final certification
May 7, 2025 after City
Council accepted CCC
modifications April 21, 2025.
Other 2
Item 6 in 4/21/2025 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_04212025-3661
Outcome reflects two ordinances
1D Economic Study and
Affordable Housing
Overlay Zone (Task 1 of 2)
Conduct Phase II economic study and
zoning assessment. Coordinate with
stakeholders (hotels, Plaza, multi-dwelling
in RM zones) and present findings to City
Council. (Economic Study)
Jun-26 6th Cycle Completed
Complete. Completed sitespecific architectural
concepts and economic
studies of affordable housing
feasibility on privately owned
sites in HE sites inventory
including hypothetical
residential and mixed use
scenarios for PC zone sites,
NC zone sites, and vacant
site on 10th Street (CC
zone); and hypothetical
conversion of nonconforming large scale multiunit projects similar to existing apartment and
condo complexes in RMSouth Zone,and hypothetical
conversion of offiice/retail
tenant space in Del Mar
Plaza - January 2023. See
Council Report
Other 6
Item 10 in 1/23/2023 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_01232023-3126
Outcome reflects 6 scenarios studied
1D Economic Study and
Affordable Housing
Overlay Zone (Task 2 of 2)
If City has not secured at least 30 affordable
units by December 2025 must proceed with
overlay zone. (Ordinance/LCPA)
6/30/2026 6th Cycle In Progress
On October 20, 2025, the
City Council approved
consultant work currently
underway to complete
additional visual concepts to
show massing for density
bonus scenarios on 10 sites
to facilitate Council
consideration of site-specific
incentives with new Overlay
Zone Ordinance. Staff will
present the concepts and
seek City Council direction
in June 2026. Target for
Planning Commission is
September 2026 and
Council adoption by
December 2026.
Other 20 Outcome reflects 20 scenarios being studied
for 10 prospective sites in new overlay zone
1E Rezone of Vacant Land
on North Bluff/South
Stratford Properties
(contigency program only)
If the City is unable to reach an agreement
with the State, then must implement rezone
to 20-25 du/ac by right via overlay zone to
create capacity for at least 54 lower income
units.
Contingency program only
required if Program 3A
agreement with State not
timely completed by April
2024.
6th Cycle Not Yet Started
No action required at this
time. Program 3A HAP
grant agreement (2023) and
ENRA (2024) were timely
executed. Separately, a
private development project
(Seaside Ridge)submitted
an application seeking
benefits they are not entitled
to for proposed development
on north bluff, including
exemptions from CEQA and
development inconsistent
with General Plan, Zoning
Code, and Local Coastal
Program in an
environmentally sensitive,
non-infill site location. City
met with developer team in
good faith to facilitate permit
processing. Owner made
clear their intent is to
continue with legal challenge
and that they will not be
submitting a complete
application for the City to
process. The developer
worked in bad faith since
2023 by trying to delay the
City's Program 3A
fairgrounds housing efforts
as a tactic to try and secure
"by right" processing for their
Other None
1F Manufactured Housing Update needed per State law (Ordinance) Dec-23 6th Cycle Completed Complete. City Council
adopted Manufactured
Housing Ordinance No.
1000 on September 18,
2023.
Other 1
Item 6 in 9/18/2023 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_09182023-3295
Outcome is one ordinance
1G Density Bonus Update needed per State Law (Ordinance) Jun-24 6th Cycle Completed Complete. City Council
adopted Density Bonus
Ordinance No. 1007 on May
6, 2024.
Other 1
Item 7 in 5/6/2024 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_05062024-3447
Outcome is one ordinance
ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.
Table D
Program Implementation Status pursuant to GC Section 65583 15 March 3, 2026 Item 11
1H Public Facilities Zone
(Task 1 of 3)
Process clean-up Rezone/LCPA for 28th
Street lot. (Resolution/Ordinance/LCPA)
January 2023 (for Council
adoption) 6th Cycle Completed
Complete. City Council
adopted General Plan
Amendment via Resolution
No. 2022-79 and introduced
Rezone Ordinance/LCPA in
December 2022. Adopted
Ordinance/LCPA in January
2023. Ordinance No. 995.
Ordinance/LCPA certified by
Coastal Commission on
February 6, 2025.
Other 3
Item No. Th20c on 2/6/2025 CCC Agenda:
https://www.coastal.ca.gov/meetings/agenda/
#/2025/2
Outcome reflects 3 lower income unit target
on 28th Street site
1H Public Facilities Zone
(Task 2 of 3)
Amend PF zone by April 2024 to clarify that
affordable housing is allowed use in PF
zone (with Shores Park excluded).
(Ordinance/LCPA)
April 2024 (for Council
adoption) 6th Cycle Completed
Complete. City Council
initially adopted April 15,
2024. Coastal Commission
conditionally certified
February 6, 2025 and
granted final certification
May 7, 2025 after City
Council accepted CCC
modifications April 21, 2025.
Units 86
Item 6 in 4/21/2025 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_04212025-3661
Outcome reflects added unit capacity
1H Public Facilities Zone
(Task 3 of 3) Obtain Coastal Commission certification. 6/30/2026 6th Cycle Completed Complete. Coastal
Commission conditionally
certified February 6, 2025
and granted final certification
May 7, 2025 after City
Council accepted CCC
modifications April 21, 2025.
Other 2 Outcome reflects two ordinances
1I Streamlining Incentives
for Affordable Housing
(Task 1 of 3)
Conduct Phase II economic study and
zoning assessment. Evaluate existing
regulations and identify potential incentives.
Jan-23 6th Cycle Completed
Complete. Completed Phase
II feasibility studies and
consideration of incentives
were completed and
presented to City Council -
January 2023. Refer to
studies in Housing Element
Appendix I.
Other 1
https://www.delmar.ca.us/DocumentCenter/Vi
ew/8576/Appendix-I---Phase-IIStudies_FINAL
1I Streamlining Incentives
for Affordable Housing
(Task 2 of 3)
Process ordinance(s) to make incentives
available to facilitate affordable housing.
(Studies and ordinance/LCPA)
Dec-23 6th Cycle Completed
Complete. Completed City
Council adopted Ordinance
No. 1003 on December 18,
2023 with incentives to
facilitate low income ADUs
on single dwelling /duplex
properties and on larger
multi-unit properties.
Other 4
Item 7 in 12/18/2023 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_12182023-3353
1I Streamlining Incentives
for Affordable Housing
(Task 3 of 3)
Process streamlining to incentivize
production of affordable housing to
encourage development of lower income
units on properties identified in the Housing
Element.
26-Jun 6th Cycle In Progress
Additional incentives in
process. The City created
new incentives throughout
6th Cycle with various
efforts. Completed
architectural, zoning, and
economic studies in 2023
resulted in site-specific
concepts for all HE sites
inventory sites to help
owners and prospective
buyers understand
development potential and
financial feasibility. Similar
feasibility studies completed
for ADUs in 2023, which led
to new ADU Amnesty
Program and updated ADU
Incentive Program. Included
new incentives for existing
apartment and condo
complexes to incorporate
low income units (i.e.,
dedicating existing older
units or adding new tiny
houses in exchange for
bonus market rate units).
Additional incentives in
process are focused on
urban infill HE sites in new
overlay zone per Program
1D and incentives for low
income ADUs. Target
Other 2
Outcome reflects two ordinances (overlay
zone and amendments to adu incentive
program)
1J Establish Program for
Coordination with
Affordable Housing
Developers
Establish program for regular outreach with
San Diego Housing Federation and
affordable housing developers. Use for
mutual benefit to gain insight towards
development of realistic strategies to
facilitate affordable housing, including
strategies that can work at the Fairgrounds.
(Outreach/meetings)
Dec-22 6th Cycle Completed
Complete. City staff
coordinated with San Diego
Housing Federation staff
(Laura Nunn). Additional
ongoing outreach and
coordination to occur via
San Diego Housing
Federation subcommittees
when new housing
opportunities become
available.
Meetings 2
City added San Diego Housing Federation
and list of new, small, emergng, minority
owned or women-owned developers to
mailing lists for housing development
opportunities (i.e., 10th Street, 28th Street,
Fairgrounds public sites and NC, PC, CC
zone private development sites)
1K Infill Affordable
Housing on Non-Vacant
and Small Sites
Conduct Phase II economic study and
zoning assessment of privately-owned sites
in sites inventory. Identify potential changes
to facilitate affordable housing via
Ordinance/LCPA per Program 1I.
(Economic study/zoning assessment)
Jan-23 6th Cycle Completed
Complete. Completed Phase
II site-specific studies
including architectural
concepts and economic
feasibility studies
demonstrating feasibility of
non-vacant and small sites
in NC and PC zones in
January 2023. Refer to
Housing Element Appendix
B for Sites Inventory and
Appendix I for studies of
privately-owned sites.
Other 6
https://www.delmar.ca.us/DocumentCenter/Vi
ew/8569/Appendix-B---Sites-Analysis_FINAL
Studied six development concepts to develop
lower income units
2A Extend and Enhance
ADU Incentive Program
(Task 1 of 3)
Process an extension of the current
incentive program by May 2022. May-22 6th Cycle Completed Complete. City Council
adopted Ordinance No. 988
extending the current
incentive program - May 16,
2022.
Units 15
Item 8 in 5/16/2022 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_05162022-2981
HE Target for 15 low income units
2A Extend and Enhance
ADU Incentive Program
(Task 2 of 3)
Prepare an economic study and zoning
assessment. Jan-23 6th Cycle Completed
Complete. Prepared and
completed feasibility study
that identified incentives to
expand program and
presented to City Council -
January 2023.
Other 3
Item 9 in 1/23/2023 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_01232023-3126
Outcome reflects three ordinances (extension
of existing ADU incentive program, updated
ADU regulations, and updated ADU incentive
program)
2A Extend and Enhance
ADU Incentive Program
(Task 3 of 3)
Process ordinance to incorporate additional
incentives and/or program modifications to
increase participation in the program.
(Ordinance to add incentives/modify
program)
Dec-23 6th Cycle Completed
Complete. City Council
adopted ADU Incentive
Program Ordinance No.
1003 for enhanced ADU
Incentive Program
December 4, 2023.
Units 15
Item 9 in 12/4/2023 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_12042023-3343
2B ADU Amnesty Program
Establish ADU Amnesty Program to allow
owners with unpermitted ADUs to legalize
the ADUs so that the City can count them
toward its inventory. The intent is to spur
production of units for moderate and lowincome households. (Resolution/Ordinance)
Dec-23 6th Cycle Completed
Complete. City Council
adopted policy by Resolution
No. 2023-48 on December
4, 2023.
Units 15
Item 10 in 12/4/2023 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_12042023-3343
2C Promotion of DeedRestricted Low Income
ADUs
Develop outreach materials to promote
deed restricted low income ADUs with goal
to reach at least 15 low income ADUs to
meet RHNA. (Web update/outreach)
23-Dec 6th Cycle Completed
Complete. Created
dedicated web page and
newsflash articles for
program as initial outreach
effort - May 2022. Additional
outreach and promotion
occurred with completion of
the ADU incentive program
ordinance and will occur
again once the citywide ADU
Ordinance gains final
certification from CCC.
Other 1 https://www.delmar.ca.us/814/ADU-IncentiveProgram 16 March 3, 2026 Item 11
2D Tracking of ADU
Progress
ADU progress is reported as part of Annual
Progress Reports that are presented to the
City Council and submitted to HCD on an
annual basis in March each year.
(Spreadsheet tracking & reports to Council)
Ongoing 6th Cycle Continuous
APR reports to-date show
that ADU production from
2020-2025 has been the
most successful strategy
toward local production of
net-new housing units for the
6th Cycle in the moderate
and above moderate
household income
categories.
Units 130
Item 5 in 3/3/2025 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_03032025-3632
2E Mid Cycle ADU
Production Evaluation
Conduct a mid-cycle progress evaluation
that accounts for the cumulative 2021-2024
production as reported to HCD in April
2025. Process additional amendments to
the ADU Incentive Program if needed to
spur production of ADUs for low-income
households. (Spreadsheet tracking &
potential ordinance)
12/31/2026 6th Cycle Completed
Complete. In addition to the
APR submitted in March
2025 for years 2021-2024
the City completed a mid
cycle evaluation report in
September 2025. The City
will be pursuing additional
ADU-related incentives as a
special project for FY25-26
and FY26-27. The City
utilized consultant
assistance from the REAP
program to obtain consultant
recommendations and
complete a community
survey that focused on low
income ADU production.
City staff presented the
report to the City Council on
September 8, 2025 which
included seven consultant
recommendations as well as
City staff recommendations
and ADU production
progress through August
2025. Additional incentives
are in process per Program
1I. Staff will seek Council
direction in June 2026 to
update ADU incentives by
December 2026.
Units 100
Item 11 in 9/8/2025 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_09082025-3736
City exceeded its HE target to produce at
least 100 ADUs during 6th Cycle
2F Tiny Houses (Task 1 of
2)
Process an ordinance to clarify tiny houses
are allowed in accordance with the ADU
regulations. Identify additional
circumstances where tiny houses can be
allowed. The intent is to spur production of
units for moderate and low-income
households. (Ordinance/LCPA)
December 2023 (for City
Council adoption) 6th Cycle Completed
Complete. The City Council
adopted ADU Ordinance No.
1002 on December 18,
2023, which included
implementation of
regulations for Tiny Homes.
Other 1
Item 6 in 12/18/2023 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_12182023-3353
Outcome reflects one ordinance
2F Tiny Houses (Task 2 of
2) Obtain Coastal Commission certification. Jun-25 6th Cycle Completed Complete. City's ADU
Regulations Ordinance,
including tiny houses, was
adopted by City Council
December 18, 2023,
conditionally certified by
Coastal Commission March
13, 2025 and final
certification by Coastal
Commission on June 12,
2025.
Other 1
Item No. Th18c in 3/13/2025 Agenda:
https://www.coastal.ca.gov/meetings/agenda/
#/2025/3
3A Agreement with the
State to Building
Affordable Housing Units
on State Fairgrounds
Property (Task 1 of 7)
Prepare an economic study and identify
potential funding sources for affordable
housing on State Fairgrounds
Jun-22 6th Cycle Completed
Complete. Completed Phase
I architectural concepts and
economic studies of market
conditions, assessment of
senior housing and family
housing multi-unit product
types, and identification of
potential funding sources for
affordable housing on State
Fairgrounds – June 2022.
Other 2
Refer to studies in Housing Element Appendix
E and the supplemental 2023 studies
(southeastern Fairgrounds site) on City
website: https://www.delmar.ca.us/852/6thCycle-Housing-Element-Program-Implem Outcome reflects feasibility studies completed
June 2022 and April 2023
3A Agreement with the
State to Building
Affordable Housing Units
on State Fairgrounds
Property (Task 2 of 7)
Select affordable housing consultant Jul-22 6th Cycle Completed Complete. Selected and
executed agreement with
affordable housing
consultant - July 2022.
Meetings 1
Item 10 in 7/11/2022 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_07112022-3015
3A Agreement with the
State to Building
Affordable Housing Units
on State Fairgrounds
Property (Task 3 of 7)
Initiate process to secure a binding
agreement with the State’s 22nd District
Agricultural Association (DAA) and General
Services Department. The objective is to
secure approval of a binding agreement
with the State by April 2024 that will allow
development of at least 54 lower income
units on the State Fairgrounds property
(located within the City of Del Mar) that will
allow the units to be counted towards the
City’s RHNA. (Agreement)
Apr-24 6th Cycle Completed
Complete. An Exclusive
Negotiating Rights
Agreement (ENRA) was
executed in March 2024
after approval by the 22nd
DAA (February 20, 2024)
and the City Council (March
4, 2024). The purpose of the
ENRA is to identify a
mutually agreeable site on
22nd DAA property within
Del Mar for development of
affordable housing, complete
site due diligence, and
negotiate mutually
acceptable terms for a
ground lease for affordable
housing development. In an
overlapping timeframe, the
State and SANDAG
allocated $1.5 million in
HAP grant funds (2024-
2026) for pre-development
studies to facilitate project
implementation as further
described below.
Other 1
ENRA secured March 2024; took effect April
15, 2024. Agremeent extended to April 15,
2027 as provided for in initial agreement.
3A Agreement with the
State to Build Affordable
Housing Units on State
Fairgrounds Property
(Task 4 of 7)
Secure grant funding for affordable housing
project with at least 54 lower income units
on the State Fairgrounds property
(Agreement)
Cycle 2 Housing
Acceleration Program Grant
Funds January 2024 - March
2026
6th Cycle In Progress
In process. City has multiple
contracts in place to pursue
developent of lower income
housing at Fairgrounds.
Includes 2023 HAP grant
contract between City and
HCD/SANDAG for $1.5
million, 2024 ENRA contract
between City and 22nd DAA
with task to select site and
execute ground lease, and
2025 MOU between City
and 22nd DAA and five task
order contracts for
Fairgrounds studies. City
continues to coordinate with
22nd DAA to implement
ENRA tasks and mutually
identify site with ground
lease. City's HAP funds are
being used to complete five
task orders to help District
choose housing site that
aligns with their master plan
in process. Task orders will
be complete March 2026.
City and District approved
one-year extension to ENRA
to April 2027 as requested
by the District CEO in
accordance with ENRA
Section 1.2(a). The adjusted
ENRA schedule still aligns
Other 1
Secured HAP Grant for $1.5 million to
complete due diligence studies a portion of
which is being used by the District for their
own task order studies to meet ENRA
commitments
17 March 3, 2026 Item 11
3A Agreement with the
State to Build Affordable
Housing Units on State
Fairgrounds Property
(Task 5 of 7)
Negotiate ground lease. 10/31/2026 6th Cycle Not Yet Started City and District approved
one-year extension to ENRA
as requested by District
CEO to extend to April 2027.
District Task orders will be
complete March 2026.
Target is selection of site by
June 2026, completion of
conceptual design program
by September 2026, and
negotiation of ground lease
by November 2026.
Other None
3A Agreement with the
State to Build Affordable
Housing Units on State
Fairgrounds Property
(Task 6 of 7)
Solicit and select developer. 11/30/2026 6th Cycle Not Yet Started To be completed pending
completion of ENRA tasks in
process. City and District
approved one-year extension
to ENRA as requested by
District CEO to extend to
April 2027. Task orders will
be complete March 2026.
Target is selection of site by
June 2026 and negotiation of
ground lease by October
2026.
Other None
3A Agreement with the
State to Build Affordable
Housing Units on State
Fairgrounds Property
(Task 7 of 7)
CEQA and entitlements. August 2028 (per HAP
Grant schedule) 6th Cycle In Progress
Pending completion of
ENRA and ground lease
tasks that precede. Target is
completion of CEQA and
City approvals by September
2027, and Coastal
Commission approval of the
Coastal Development Permit
by August 2028. Allows
time to secure financing,
commence construction,
and build the project by June
2031.
Other None
3B Feasibility/Suitability of
Affordable Housing on
Publicly Owned Sites
(Task 1 of 5)
Conduct Phase I economic study and
zoning assessment of three publicly owned
sites in the sites inventory including the
State Fairgrounds and two City-owned
vacant lots on 10th Street and 28th Street.
Prepared site-specific concepts for multiunit product types that are eligible for tax credit programs, estimated costs, and
identified potential funding sources for
development of affordable housing. Sitespecific implementation via Programs 1H and 3A. (Economic study/zoning
assessment)
22-Jun 6th Cycle Completed
Complete. Completed Phase
I feasibility studies of
publicly-owned properties –
June 2022.
Other 2
Item 1 in 6/13/2022 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_06132022-3003
Completed planning studies for two Cityowned sites
3B Feasibility/Suitability of
Affordable Housing on
Publicly Owned Sites
(Task 2 of 5)
Select affordable housing consultant. Apr-24 6th Cycle Completed Complete. City selected
affordable housing
consultant July 2022.
Other 1
Item 10 in 7/11/2022 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_07112022-3015
3B Feasibility/Suitability of
Affordable Housing on
Publicly Owned Sites
(Task 3 of 5)
Solicit potential non-profit partners. Apr-24 6th Cycle Completed Complete. Created a list of
potential non-profit partners.
The City met with the San
Diego Housing Fund (April
and June 2024). In February
2026, staff emailed potential
interested persons from
County's list to solicit
development interest in the
two City-owned sites.
Other 1
None
Outcome reflects the list of potential non-profit
partners.
3B Feasibility/Suitability of
Affordable Housing on
Publicly Owned Sites
(Task 4 of 5)
Seek City Council decision to pursue City
development project or alternative strategy Mar-25 6th Cycle Completed Complete. Approach for Cityowned sites was provided by City Council in March 2025.
Budget was allocated and
workload was prioritized for
10th Street infill site at Civic
Center. Unfortunately,
SANDAG did not
recommend an award of
SGIP grant funds for this
affordable housing project.
City is seeking additional
funding sources to build the
project. By May 2025, City
completed Coastal
Commission certification
actions relating to the 28th
Street site. City Council will
provide further direction on
City-owned 28th Street in
March 2026 with upcoming
budget/workload
prioritization process for
FY26-27 and FY27-28.
Meetings 1
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_03052025-3636
3B Feasibility/Suitability of
Affordable Housing on
Publicly Owned Sites
(Task 5 of 5)
Secure building permits for at least 7 lower
income units by 2027. 12/31/2027 6th Cycle In Progress
In process. For 10th Street,
Feb 17, 2026 Council
declaration of exempt
surplus land, City will
prepare RFP for consulting
services and initiate studies
by December 2025,
complete 60% design plans
by March 2027, 100%
design plans by August
2027, issue building permit
and obtain construction bids
by December 2027, and
construct by December
2028. Similar process for
28th Street for at least 3 low
income units by December
2027.
Units 8
Agenda Report (Item 9) on February 17, 2026
Adoption of Resolution to declare the Cityowned 10th Street Vacant Lot exempt Surplus Land
Outcome reflects 8 lower income unit target
for 10th Street site
4A Residential Care
Facilities
Process ordinance for compliance with
State law (Ordinance/LCPA) 9/30/2026 6th Cycle In Progress In process. City prepared
initial drafts. Preparation and
processing of ordinances
using HAP grant funds will
include Planning
Commission July 2026, City
Council September 2026,
and Coastal Commission
certification to follow.
Other 1 Outcome reflects processing of one ordinance
4B Emergency Shelters,
Transitional Housing and
Supportive Housing, and
Low Barrier Navigation
Centers (Task 1 of 2)
Develop procedures to connect public with
resources. (policy/procedures) Sep-26 6th Cycle In Progress Implementation of these
programs is in process. City
staff previously prepared
draft regulations but had to
defer processing due to
limited resources and other
competing priority items with
more immediate deadlines.
This package of
amendments will also
include an update to the
City’s reasonable
accommodations
regulations.
Other None
18 March 3, 2026 Item 11
4B Emergency Shelters,
Transitional Housing and
Supportive Housing, and
Low Barrier Navigation
Centers (Task 2 of 2)
Process ordinance for compliance with
State law. (Ordinance/LCPA) 26-Sep 6th Cycle In Progress In process. City prepared
initial drafts. Preparation and
processing of ordinances
using HAP grant funds will
include Planning
Commission July 2026, City
Council September 2026,
and Coastal Commission
certification to follow This
package of amendments will
also include an update to the
City’s reasonable
accommodations
regulations.
Other 2 Outcome reflects processing of two
ordinances
4C Shared Housing
Program
Continue to offer shared housing
program/free roommate referral services via
Del Mar Community Connections and will
market the program and take other actions
necessary to assist with matching tenants
with existing homeowners (Outreach)
Ongoing 6th Cycle Continuous
The City allocates annual
funding to non-profits -
approximately $110,000
annually, including Del Mar
Community Connections. As
part of that program, the City
Council continues to receive
annual updates from Del Mar
Community Connections.
This non-profit addresses
marketing and promotion for
the community service
programs they manage and
provide for the City. .
Other 2
City conducted surveys in April 2025 an
January 2026 and anticipates using
information to inform future discussions
regarding home sharing options
4D Inclusionary Housing
Ordinance (Task 1 of 2)
Process amendments for compliance with
State law (Ordinance) 24-Jun 6th Cycle Completed
Complete. City completed
Phase II financial feaisbility
study that helped infrom
setting of threshold for
inclusionary housing
ordinance. City Council
adopted Ordinance No. 1012
on October 7, 2024.
Other 1
Item 5 in 10/7/2024 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_10072024-3531
Outcome reflects the Phase II financial
feasibility studies that helped inform threshold
for the ordinance
4D Inclusionary Housing
Ordinance (Task 2 of 2)
Obtain Coastal Commission certification for
companion Ordinance (Clean up
amendments to NC and PC Zones for
consistency with citywide ordinance).
4/9/2025 6th Cycle Completed
Complete. Inclusionary
Housing/Condo Conversion
ordinance took effect 30
days from City Council
adoption on October 7,
2024. This companion
ordinance with clarifying
amendments to NC/PC
zones was certified as
deminimis by CCC on April
9, 2025.
Other 2
Item No. W19b in Agenda:
https://www.coastal.ca.gov/meetings/agenda/
#/2025/4
Outcome reflects procesisng of two
ordinances
4E Condominium
Conversions
Continue to implement existing processing
requirements of Subdivision Map Act and
mitigation requirements per DMMC
24.21.025 (Publish procedure/amend
ordinance with Program 4D)
24-Jun 6th Cycle Completed
Complete. City Council
adopted Ordinance No. 1012
on October 7, 2024.
Other 374
Item 5 in 10/7/2024 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_10072024-3531
Outcome reflects the 374 total number of
units in existing apartment complexes that
offer moderate income rental options where
the existing units are being preserved
including units in the nine apartment
complexes in residential zones (321 units) and
Del Mar Terraces apartment complex in the
visitor commercial zone (53 units).
5A Expand Allowance for
the Renovation and
Improvement of existing
Multi-Unit Structures with
Non-Conformities
Continue to allow retention of nonconforming structures with three or more units to renovate and make improvements
to these existing multiple dwelling unit
structures. Expand to incentivize creation of
low income units. Monitor the number of
projects that utilize this program and
identify the number of units conserved or
rehabilitated where applicable.
(Procedure/Ordinance)
23-Dec 6th Cycle Completed
Complete. City Council
adopted Ordinance No. 1003
for enhanced ADU incentive
program December 18,
2023, which included
additional incentives for
multi-unit structures. The
program is intended to
encourage property owners
to deed restrict existing older
units, some of which are
already occupied by lower
income households
participating in the City's
rental subsidy program, and
in exchange be granted the
ability to develop new
market rate units on-site.
Other 1
Item 7 in 12/18/2023 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_12182023-3353
Outcome reflects ordinance adopted with new
incentives
5B Require Housing
Impact Statements in
Reports
Adopt City Council policy and procedure for
inclusion of housing impact statement in
staff reports.
22-Feb 6th Cycle Completed
Completed. City Council
adopted Policy No. 117 in
February 2022.
Other 1
https://www.delmar.ca.us/DocumentCenter/Vi
ew/7992/117-Housing-Impact-Statement
Outcome reflects adoption of City Council
Policy 117.
5C Preserve Existing
Housing Stock/Short Term
Rental Controls (Task 1 of
4)
Continue to establish policies and programs
that more effectively address regulations for
short term rentals as a means to preserve
long term housing stock (Ordinance/LCPA)
Feb-26 6th Cycle Completed
Completed. City Council set
Guiding Principles and
Objectives. Hired consultant
to collect data and created
registry of existng STR
owners to understand
baseline data prior to
preparation and processing
of ordinance. Hired
consultant to facilitate
implementation including
STR permit issuance, TOT
collection, regulation
enforcement, and a public
facing portal for the
community.
Units 150
Item 10 in 2/3/2025 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_02032026-3813
Outcome reflects 150 STRs on existing
registry.
5C Preserve Existing
Housing Stock/Short Term
Rental Controls (Task 2 of
4)
Extend STR Forbearance Council
Resolution to defer enforcement against
existing STRs in operation prior to April
2016.
23-Jan 6th Cycle Completed
Complete. Extension of
Forbearance Resolution
adopted January 23, 2023.
Other 6
Item 8 in 1/23/2023 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_01232023-3126
Outcome reflects 6 Resolutions to establish
and extend the forbearance period through
adoption and certification of the STR
ordinance.
5C Preserve Existing
Housing Stock/Short Term
Rental Controls (Task 3 of
4)
Execute task order with consultant for data
collection on existing STRs. 23-Jan 6th Cycle Completed Complete. Executed task
order January 2023.
Consultant (DTA) collected
data through June 2023 on
existing STRs. The
information was presented to
the City Council in July
2023. In September 2023
the City established a
voluntary registry for existing
STR owners to register with
the City to help inform
preparation and adoption of
the Ordinance. The data
collected through the registry
indicated the existing STRs
represent approximately 5%
to 6% of the City's existing
housing stock.
Units 150
Item 9 in 7/10/2023 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_07102023-3256
Outcome reflects 150 STRs on existing
registry to be accommodated by the STR
Ordinance as eligible to apply for STR
Permits March 2 trhough May 1, 2026.
19 March 3, 2026 Item 11
5C Preserve Existing
Housing Stock/Short Term
Rental Controls (Task 4 of
4)
Process Ordinance/LCPA as a measure to
reduce the City's high vacancy rate closer
to 5%
26-Feb 6th Cycle Completed
Complete. Executed task
order January 2023. On
August 13, 2024, the
Planning Commission
recommended approval of
the STR Ordinance. On
September 9, 2024, the City
Council introduce dthe
Ordinance and on
September 24, 2024 the City
Council adopted the
Ordinance. On February 5,
2026, the Coastal
Commission granted final
certification of the
Ordinance.
Other 129
Item No. Th16e in 2/5/2026 Agenda:
https://www.coastal.ca.gov/meetings/agenda/
#/2026/2
The STR Ordinance in effect set a cap of 129
STRs, includes neighborhood caps in three
neighborhoods, and limits all new STRs to
operation within a primary residence. These
mearures are intended to help reduce the
City's high vacancy rate.
6A SB 35 Streamlining -
Notice of State Law
Exemption for Coastal
Cities
Provide notice to the public that the City of
Del Mar is a coastal city that is exempt from
SB 35 (Post notice on web page)
22-Feb 6th Cycle Completed
Complete. In January 2022,
published notice on City web
page of local exemption from
SB 35 because the City of
Del Mar is a coastal city in
the jurisdiction of the
California Coastal
Commission.
Other 1
Posted notice on City's Housing Element
Implementation web page:
https://www.delmar.ca.us/852/6th-CycleHousing-Element-Program-Implem Senate Bill 35 – Notice of Exemption for
Coastal Jurisdictions (per Program 6A)
SB 35 was approved by the Governor in 2017
to streamline multi-unit housing approvals
through January 1, 2026. While the City of
Del Mar is a coastal city that is exempt from
the SB 35 streamlining provisions per
Government Code Section 65913.4(a)(6)(A)
because SB 35 streamlining does not apply in
the coastal zone, the City will be exploring
various incentives to help streamline and
incentivize affordable housing per 6th Cycle
Housing Element Program 1I, including
Phase II planning studies completed January
2023.
6B Affirmatively
Furthering Fair Housing
per AB 686 (Task 1 of 8)
Create new housing opportunities at a
range of income levels and remove other
barriers within the City's control, including a
suite of actions to create new opportunities
for housing mobility and relocation to and
within Del Mar, with the goal of creating
100 additional housing opportunities beyond
RHNA.
Ongoing 6th Cycle Completed
Complete. Studies
completed 2022/2023
helped inform owners and
public about housing
potential and feasibility for
sites in HE sites inventory
which led to development
interest. Updated density
bonus and inclusionary
regulations tools to help
create lower income units.
Created additional sites
beyond RHNA with 20 du/ac
density in CC Zone (1C) and
PF Zone (1H), which
created new opportunities for
density bonus projects and
renewed development
interest in CC, NC, and PC
zones. Updated the ADU
Incentive Program with new
incentves to create low
income units. ADUs have
been a primary source of
production of moderate
income and above moderate
income units. Final SB 9
ordinance led to inill
development interest in R1
residential zones that can
create low income units
through inclusionary
housing.
Units 100
https://www.delmar.ca.us/852/6th-CycleHousing-Element-Program-Implem Outcome reflects new opportunities for more
than 100 units beyond RHNA.
6B Affirmatively
Furthering Fair Housing
per AB 686 (Task 2 of 8)
Expand zoning capacity. 22-Jun 6th Cycle Completed
Complete. Satisfied by
completion of HE Programs
1A and 1B. In addition, the
City Council adopted the
Ordinance/LCPA for Senate
Bill 9 in June 2023 which
was certified by CCC on
June 12, 2025. Existing
opportunities for
development of ADUs and
JrADUs have resulted in
bulk of net new housing
units in the City's 6th Cycle.
Units 130
Item No. Th14 in 6/12/2025 Agenda:
https://www.coastal.ca.gov/meetings/agenda/
#/2025/6
Outcome reflects the number of ADUs that
have been issued building permits in the 6th
Cycle. The City already exceeded its target to
create at least 100 ADUs during the 6th
Cycle.
6B Affirmatively
Furthering Fair Housing
per AB 686 (Task 3 of 8)
Amendments to create additional
opportunities. Ongoing 6th Cycle Completed
Complete. The City created
over 100 additional
opportunities for lower
income units beyond RHNA.
This included completion of
required rezone programs
1C (CC zone) and 1H (PF
zone), density bonus
ordinance (program 1G),
allowances for manufactured
homes and tiny homes
(programs 1F and 2F), ADU
incentive and amnesty
programs (2A and 2B),
general housing incentives
and incentives to preserve
existing more affordable
units (programs 1I and 5A),
provisions to require low
income units for
condominium projects and
all multi unit projects
inlcuding SB 9 projects (4D,
4D, and 6B).
Units 100
Item 7 in 4/15/2024 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_04152024-3436
Outcome reflects new opportunities for more
than 100 units beyond RHNA.
6B Affirmatively
Furthering Fair Housing
per AB 686 (Task 4 of 8)
Actions that Focus on Special Needs
including Fair Housing materials in English
and Spanish.
Ongoing 6th Cycle In Progress
In process. The City website
complies with ADA
standards and offers
translation services in
multiple languages.The City
also has special projects in
process that will produce
additional fair housing
materials in English and
Spanish. See programspecific details for each
respective HE program
referenced (4A, 4B, 4C, 6E,
7C, 7G, 7H).
Other None
6B Affirmatively
Furthering Fair Housing
per AB 686 (Task 5 of 8)
City staff fair housing training with Legal Aid
Society of San Diego Dec-23 6th Cycle Completed
Complete. City staff have
received annual fair housing
trainings on October 3,
2023, September 26, 2024,
and October 30, 2025. Staff
will continue to hold these
trainings on an annual basis.
Meetings 3
None
Outcome reflects the three trainings that have
been provided to city staff since 2023.
20 March 3, 2026 Item 11
6B Affirmatively
Furthering Fair Housing
per AB 686 (Task 6 of 8)
Mid-Term evaluation to evaluate the
effectiveness of strategies of promoting
affordable housing and special needs
housing opportunities.
Dec-26 6th Cycle Completed
Completed. The reasonable
accommodations regulations
are being updated with the
4A and 4B code
amendments in FY26-27.
The City met its above
moderate and moderate
income units through ADUs.
Production of lower income
units is a challenge. The
Program 1D overlay zone
and additional incentives are
measures in process that
will continue to support new
opportunities for affordable
housing and special needs
households. The City is
pursuing development of
very low income units on
two City-owned properties
per Program 3B.
Other None
6B Affirmatively
Furthering Fair Housing
per AB 686 (Task 7 of 8)
Implement beach parking pass program for
lower income households 23-Jun 6th Cycle Completed
Complete. Low income
beach parking pass program
implemented in December
2023. As of December 2025,
33 passes have been issued.
Persons 33
https://www.delmar.ca.us/881/Low-IncomeBeach-Parking-Pass Outcome reflects the 33 total low income
beach parking passes that have been issued
since 2023.
6B Affirmatively
Furthering Fair Housing
per AB 686 (Task 8 of 8)
Participate in regional efforts, partner with
organizations to review and refer
discrimination complaints, and implement
various actions including annual
coordination in regional efforts to partner on
strategies to address homelessness
(Program 7J) (Outreach and funding)
Ongoing 6th Cycle Continuous
Ongoing. To address
homelessness, City staff
from City Manager's office
and representatives for City
Council, continue to
participate in countywide
efforts to reduce
homelessness as further
described under Program
7J. This includes
coordination with State
Senator Blakespear and
County Supervisor LawsonRemer and particpation in
related events, as well as
education-related efforts to
help inform how small cities
can best contribute to this
effort. City has observed that
some well intended
proposals being brought
forward at a state level will
not be feasible for small
cities to implement alone in
a lead role and the City has
shared its concerns and
recommendations
accordingly.
Persons 36
None
Outcome reflects 36 persons currently
receiving aid through the Community
Resource Center program and Food and
Nutrition services.
6C Continue Data
Collection and Compliance
with the Coastal Act and
Housing Element-Related
Requirements applicable
to the Coastal Zone,
including State-Mandated
Accommodation of
Housing Development
Capacity
Continue to collect data and maintain
records regarding affordability. Work with
the Coastal Commission and HCD to
“harmonize” the Coastal Act and State
Housing laws and identify a strategy to best
accommodate future development capacity
as assigned to the City for the 6th Cycle.
(Spreadsheet tracking and annual reports)
Ongoing 6th Cycle Continuous
Ongoing. Del Mar is a
coastal city that is
contributing net-new units to
meet statewide housing
needs primarily through
ADUs. There has been nonet loss of units in Del Mar.
Newly adopted City
strategies (i.e., Program 4E
condo conversion ordinance
limitations) to preserve
existing naturally occuring
affordable housing in existing
apartment and condo
complexes (30% of existing
housig stock) has been
effective. The existing 10
apartment complexes offer
rental unit options within the
moderate income housing
category. The City's
approach is consistent with
Coastal Act and certified
LCP.
Units 374
Outcome reflects the 374 total number of
units in existing apartment complexes that
offer moderate income rental options where
the existing units are being preserved
including units in the nine apartment
complexes in residential zones (321 units) and
Del Mar Terraces apartment complex in the
visitor commercial zone (53 units).
6D Solar Panel Installation
Partnership
Partner with Renewable Cities San Diego to
install solar on housing for lower income
households (Resolution)
6/30/2026 6th Cycle In Progress
In process. This is being
addressed by the City
Managers office with CAP
implementation. Staff is
analyzing programs for
partnership opportunities.
SANDAG indicated intent to
award SGIP grant funding in
October 2025 for CAP data
collection. In terms of
potential opportunities for
solar, the two approved
affordable housing projects,
that have not yet been
constructed, already will
include sustainable design
features such as solar. The
City does not have other
existing multi unit housing
for lower income households
yet that this program would
apply to. The City's ADU
Incentive Program could be
an opportunity for additional
affordable housing projects
to participate.
Units 50
Outcome reflects the 50-unit Watermark
housing project opportunity for future
participation in this program.
6E Environmental Justice
Element
Process Community Plan Amendment to
establish policies to reduce community
health risks and address Affirmatively
Furthering Fair Housing Issues per
Assembly Bill (AB) 686. (General Plan
Amendment)
45078 6th Cycle In Progress
In process. Staff published a
draft for public review and
processing in December
2025. The Sustainability
Advisory Committee
recommended approval
January 26, 2026, and the
Planning Commission
recommended approval
February 10, 2026. The
target date for City Council
adoption is April 2026.
Meetings 2
https://www.delmar.ca.us/929/Safety-andEnvironmental-Justice-Element Outcome reflects the two public meetings the
Environmental Justice Element was
presented during in 2026. One final public
hearing of the City Council is targeted for
adoption April 2026.
21 March 3, 2026 Item 11
6F Vote Threshold for
Housing-Related General
Plan Amendment
Explore whether to modify local vote
threshold for super majority to apply State’s
simple majority (Study and potential
ordinance/public vote)
Ongoing 6th Cycle Continuous
No change in status. The
temporary challenge
currently is due to one
vacant Council seat that
occurred beyond City control
due to a Councilmember
resignation for medical
reasons. This has not
impacted the City's ability to
implement its certified
Housing Element. City staff
conferred with the City
Attorney and determined
that the voting
requirement does not pose a
barrier to passage of these
amendments. The proposed
new
Environmental Justice
Element (Program 6E) and
Safety Element Update
(Program 6H) have
been available for public
review since December
2025, and the associated
public hearings to
adopt Resolutions are in
process to complete the
required HE program
actions.
Other 2
Outcome reflects the two general Plan
Amendments currently pending votes by the
City Council in 2026.
6G Objective Design
Standards
Prepare and process objective design
standards for housing that is eligible for byright processing (Ordinance)24-Jun 6th Cycle Completed Complete. Ordinance and
Objective Design Standards
Manual adopted by City
Council in September 2024.
Ordinance No. 1011
Other 1
Item 11 in 9/23/2024 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_09232024-3525
Outcome reflects the adoption of the
ordinance to establish objective design
standards.
6H Safety Element (Task 1
of 2)
Coordinate with CalFire and State Board of
Forestry. 25-Nov 6th Cycle Completed
Complete. CAL FIRE
determined the draft Safety
Element satisfied all required
criteria September 2025.
The California Board of
Forestry approved the draft
Safety Element at a public
meeting on November 4,
2025.
Other 2
https://calfire.app.box.com/s/utf5hwggq2kk2m
jufgdpxhaxce36cek9
Outcome reflects the two processing steps
required for coordination with CalFire as well
as the Board of Forestry prior to formal
processing of the General Plan Amendment
for adoption by the City Council.
6H Safety Element (Task 2
of 2)
Process Community Plan Amendment to
update the existing Safety Element
(General Plan Amendment)
Apr-26 6th Cycle In Progress
In process. Staff published a
draft for public review and
processing in December
2025. The California Board
of Forestry approved the
draft Safety Element at a
public meeting on November
4, 2025. The Planning
Commission recommended
approval January 13, 2026.
The Sustainability Advisory
Committee recommended
approval January 26, 2026.
The target date for City
Council adoption is April
2026.
Meetings 3
https://www.delmar.ca.us/929/Safety-andEnvironmental-Justice-Element Outcome reflects the three public meetings
where the Safety Element was recommended
for City Council approval including the Board
of Forestry, Planning Commission, and
Sustainability Advisory Committee.One final
public hearing of the City Council is targeted
for adoption April 2026.
7A Housing Funding
Resources Including
Housing Assistance and
Housing Reserve Funds
Continue to make funds accrued in the
Housing Assistance Reserve fund available
for affordable housing. Ensure that the
funds remain available for at least four lower
income households via rental subsidy
and/or for new affordable housing (i.e., for
the acquisition of land and construction of
affordable units to be made available for
individuals or families of extremely low, very
low or low-income levels). (Annual report to
City Council with budget)
Ongoing 6th Cycle Continuous
Ongoing. City Council
allocation of funds occurs
annually with adoption of
each two-year City budget.
Currently $900,000 is in the
Housing Reserve Fund. For
the FY25-26 and FY26-27
budget, the City Council
allocated significant funding
to a variety of special
projects to implement the
City's Housing Element.
The Council allocated
$500,000 from the Housing
Reserve fund to build 4 to 8
units on the City-owned 10th
Street site per HE Program
3B.
Units 8
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_03052025-3636
Outcome reflects the maximum capacity for
up to 8 units for very low income households
on the City-owned 10th Street site.
7B Interfaith Partnership
Opportunities
Continue to encourage inter-faith shelter
network rotating shelter and St. Peter’s
Helping Hands (Annual report to City
Council with budget)
Ongoing 6th Cycle Continuous
Ongoing. The City allocates
approximately $110,000
annually to local non-profits.
As identified in further detail
under Program 7J, the City
allocated $10,000 to the
Community Resource
Center for FY25-26 and FY
26-27. These funds will be
used by the non-profit to
support their Food and
Nutrition Center that
provides an average benefit
of $450 per month plus
nutritious fresh meals,
produce, meat, and dairy as
well has non-perishable food
and hygiene items to help
address homelessness and
hunger in North San Diego
County. The program
directly serves 36 eligible
Del Mar residents who
qualify as lower income
households to help keep
these lower income
households in their homes.
Persons 36
Item 7 in 7/7/2025 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_07072025-3712
Outcome reflects 36 persons currently
recieiving aid through the Community
Resource Center Food and Nutrition Program.
7C Resources for Persons
with Disabilities
Publish a resource list of programs and
opportunities for persons with disabilities
(Updated list to be published within 3-6
months of Ordinances processed per
Programs 4A and 4B)
Ongoing 6th Cycle In Progress
Ongoing. The Housing
Element Program 4A/4B
and reasonable
accommodations
amendments are in process.
City Council action is
anticipated to occur in 2026
as shown for those
respective programs on this
list.
Other 2
Outcome reflects the two ordinances in
process to address Programs 4A and 4B and
raesonable accommodations.
7D Housing Choice
Voucher Program
Contract with the County of San Diego for
Housing Choice Voucher Program
(Resolution to process contract)
Ongoing 6th Cycle Continuous
The City continues to
contract with the Housing
Authority of the County of
San Diego for administration
of housing assistance
programs for the City of Del
Mar. Links to County
resources are provided on
the City's webpage with
other fair housing resources.
Other 1
https://www.delmar.ca.us/884/Fair-HousingResources
Outcome reflects contract with the County.
7E Fee Waiver Program Continue the fee waiver program
(Resolution to extend fee waiver if needed) Ongoing 6th Cycle Continuous Ongoing. The City has not
received any fee waiver
application requests.
Other
None
Outcome reflects that no fee waiver
applications have been received.
22 March 3, 2026 Item 11
7F Monitor and Respond
to Complaints of
Constraints to Housing for
Lower Income Households
and Persons with
Disabilities
Monitor and respond to complaints of
constraints to housing for lower income
households and persons with disabilities
such as impediments to maintenance,
improvement, or development of such
housing. Continue to work with local nonprofits to connect people with assistance and resources. (Annual report to City
Council with budget)
Ongoing 6th Cycle Continuous
Ongoing. The City has not
received any complaints of
impediments. However, the
City identified reasonable
accommodations-related
code amendments that it will
be processing as a special
project together with other
fair housing code
amendments for HE
Programs 4A/4B. City
Council action is anticipated
to occur in 2026.
Households
None
Outcome reflects that no complaints have
been received.
7G Senior Housing
Resources and Assistance
Continue to partner with Del Mar
Community Connections (Resolution to
extend contract)
Ongoing 6th Cycle Continuous
Ongoing. The City allocates
approximately $110,000
annually to local non-profits.
This inlcuded significant
funding for Del Mar
Community Connections,
which serves local seniors.
Associated reports include
the Item 11 City Council
Agenda Report for adoption
of the budget June 16, 2025
and the Item 7 City Council
Agemda Report July 7,
2025 that authorized
execution of additional
budget allocation of $20,000
in two Community Support
Funding Agreements that
included Community
Resource Center funding to
serve 36 Del Mar residnets
who qualify as lower income.
Persons 36
Item 7 in 7/7/2025 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_07072025-3712
Outcome reflects 36 persons currently
recieiving aid through the Community
Resource Program.
7H Student Housing
Resources and Assistance
Connect students with affordable housing
options in Del Mar, including ADUs
(Outreach/Resource list)
Ongoing 6th Cycle Continuous
Ongoing. The closest
university to Del Mar is
UCSD. UCSD has
increased its planned
student housing capacity,
which includes on-campus
and off-campus housing
options. Historically, Del Mar
has had many UCSD
student and employee
residents. The City's existing
11 apartment complexes
and new ADUs are the main
local housing options
available for moderate
income households. The
City is continuing to seek
potential partnership
opportunities in Del Mar (i.e.,
shared housing and ADUs)
to help connect landlords
and students.
Other 123
Outcome reflects the total number of ADUs
that the City will be seeking as potential
opportunities to house students.
7I Database of Community
Assistance Programs
Maintain list of community assistance
programs (Resource list) Ongoing 6th Cycle Continuous
Ongoing. The resource list
and fair housing web page
content was last updated in
October 2024 and is set to
be updated next in October
2025 to coincide with the
annual fair housing training
we provide for City staff.
Other 12
https://www.delmar.ca.us/852/6th-CycleHousing-Element-Program-Implem Outcome reflects the 12 resources currenlty
linked on the City's webpage.
7J Efforts to Reduce
Homelessness
Continue to collaborate with San Diego
Regional Task Force on Homelessness
(RTFH) including point in time counts and
other partnership opportunities. Connect
individuals and businesses seeking
available services to address homelessness
including coordination with the Countysponsored outreach worker for Del Mar, County’s Mobile Crisis Response team
(MCRT) and the Sheriff’s Department
Crime Prevention team. Adopt a City
Council Resolution in support of Senate Bill
1338 (Completed June 2022).
Ongoing 6th Cycle Continuous
Ongoing. Refer to City
Council Agenda Report for
July 7, 2025. The City
continues to support nonprofits and contribute its fair share for the annual Point in
Time Count including
participation in activities for
the Regional Task Force on
Homelessness. The City
allocated $10,000
specifically to the
Community Resource
Center as part of a local
Community Support
Program Funding agreement
for FY25-26 and FY 26-27.
These funds will be used by
the non-profit to support their
Food and Nutrition Center
that provides nutritious fresh
meals, produce, meat, and
dairy as well has nonperishable food and hygiene
items to help address
homelessness and hunger in
North San Diego County.
The program directly serves
36 eligible Del Mar residents
who qualify as lower income
households. These
households receive an
average economic benefit of
Persons 36
Item 7 in 7/7/2025 Agenda Report:
https://www.delmar.ca.us/AgendaCenter/Vie
wFile/Agenda/_07072025-3712
Outcome reflects 36 persons currently
recieiving aid through the program.
23 March 3, 2026 Item 11
Jurisdiction Del Mar Note: "+" indicates an optional field Reporting
Period 2025
(Jan. 1 - Dec.
31)
Cells in grey contain auto-calculation
formulas
Designation Size Notes
1 2 3 4 5 6 7
APN Street Address/Intersection Existing Use Number of
Units
Surplus
Designation
Parcel Size (in
acres) Notes
300-093-17-00 10th Street, between the cross streets of Camino del Mar and Stratford Court Vacant 0 Exempt Surplus Land 0.1 NOTE: This table must contain an inventory
of ALL surplus/excess lands the reporting
jurisdiction owns
Summary Row: Start Data Entry Below
Parcel Identifier
ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Table H
Locally Owned Surplus Sites
24 March 3, 2026 Item 11
Jurisdiction Del Mar Note: "+" indicates an optional field Reporting
Period 2025
(Jan. 1 - Dec.
31)
Cells in grey contain auto-calculation
formulas
Size Notes
3 4
APN Street Address/Intersection Date of
Designation
Designation
Level
Historic Site
Period
Areas of
Significance
Parcel Size (in
acres) Notes
Summary Row:
299-260-63-00 420 Avenida Primavera 5/14/2025 State 1900 to Present Architecture,
Commerce,
Planning
0.9 https://catalog.archives.gov/id/123860833
Historical Resources
Parcel Identifier
1 Designation
2 NOTE: This table needs to be completed with any sites within your jurisdiction that were newly added to a National, State, or Local register of historic places within the reporting year. If none, leave blank.
ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Table L
25 March 3, 2026 Item 11
City of Del Mar
Agenda Report
TO: Honorable Mayor and City Council Members
FROM: Marco Camacho, Finance Manager/Treasurer
Monica Molina, Finance Officer
Ashley Jones, City Manager
DATE: March 3, 2026
SUBJECT: Fiscal Year 2024-25 Final Financial Report and Fiscal Year 2025-26 Mid-Year Financial Report
REQUESTED ACTION/RECOMMENDATION:
Staff recommends that the City Council: 1) Receive the June 30, 2025 Annual Comprehensive Financial Report (ACFR) and Fiscal Year 2024-25 Final Financial Report; 2) Review the Fiscal Year 2025-26 Mid-Year Financial Report; and 3) Approve Resolution (Attachment A) amending the FY 2025-26 Operating and Capital Budget as included in Exhibit A, authorizing net revenue adjustments totaling $5,673,620 million and net expenditure adjustments totaling $1,325,660, and authorizing unspent FY 2024-25 encumbrances and continuing appropriations to be carried over to FY 2024-25 as included in Attachment B totaling $9,071,519 in expenditures and $3,924,755 in revenues.
DISCUSSION/ANALYSIS:
FISCAL YEAR 2024-25 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) The City’s audit firm, Davis Farr LLP, has completed its audit of the City’s financial statements and notes to the basic financial statements for the fiscal year (FY) ended June 30, 2025. Based on the results of their audit, Davis Farr LLP provided the City with an unmodified opinion on the financial statements, which means that the City’s financial statements are free of material misstatements and consistent with Generally Accepted Accounting Principles (GAAP). The auditor provided a report with information about the auditor’s responsibilities under generally accepted auditing standards and Government Auditing Standards and OMB Circular A-133 as well as certain communications related to their audit. These communications are contained in the ACFR.
The specific financial documents on which the auditor expresses an opinion are the basic financial statements, and notes to the basic financial statements. These documents, along with the auditor’s opinion letter and management’s discussion and analysis, are the core ACFR documents. Additional documents that make up the ACFR include the letter of transmittal from the City Manager and Finance Manager/Treasurer and a supplemental section, which includes a statistical section presenting detailed information to assist the reader in assessing the economic condition of the City. The ACFR is available on the City’s website at http://www.delmar.ca.us/acfr.
Davis Farr LLP prepared a communication (Attachment C) addressed to individuals charged with governance regarding internal controls over financial reporting and compliance based on an audit of Financial Statements performed in accordance with Government Auditing Standards. The purpose of this report is to describe the scope of the auditors’ testing of internal controls over financial reporting and compliance, and the results of that testing. The City’s internal controls over 1 March 3, 2026 Item 12
City Council Agenda Report
FY 2024-25 Final Financial Report and FY 2025-26 Mid-Year Financial Report March 3, 2026
financial reporting were considered for the limited purpose of expressing an opinion on the financial statements.
Article XIII-B of the California State Constitution places limits on the amount of revenue that can be spent by the State and each local government entity. It is the responsibility of the City to calculate the annual appropriations limit. The City’s auditors are required to review and approve the appropriations calculation as part of their audit of the City. The auditor found no exceptions to the City’s calculation of the appropriations limit. The Independent Accountants’ Report is included as Attachment D.
FISCAL YEAR 2024-25 FINAL FINANCIAL REPORT
The FY 2024-25 Budget was originally adopted in June 2023 and updated in June 2024. The approved FY 2024-25 Budget Update reflected a projected General Fund Contingency (GF) of
25.69% (94 days of operations). The City Council approved the FY 2024-25 Mid-Year Budget amendment in April 2025, which included increasing General Fund revenue projections by $685,620 and General Fund expenditure budgets by $330,724, and included transfers of:
$360,000 to the Pensions Reserve Fund; $100,000 to the Equipment Reserve Fund; $300,000 to the Housing Reserve Fund; and, $2,500,000 to the Capital Reserve Fund. The FY 2024-25 MidYear Budget was approved with an adjusted June 30, 2025 General Fund Contingency of 30.08% or $5,683,024 which represents 110 days of operations.
In January 2026, Davis Farr LLP completed the FY 2024-25 financial audit. Attached for review is the Final Financial Report (Attachment E) for FY 2024-25. The report reflects a final General Fund Contingency balance of $6,503,908, which represents a contingency of 34.80% (127 days of operations).
Attachment F is a General Fund cash flow report for FY 2024-25, which includes the FY 2024-25 Mid-Year budget (column B) as approved in April 2025, Final Results (column C), and the difference between the Mid-Year Budget and audited Final Results (column D) for the year ending June 30, 2025.
The following summary tables compare Final Budgets as of the end of the fiscal year to the audited Final Results for FY 2024-25.
General Fund Revenues
The final revenue report for FY 2024-25 indicates that there was a gain in total General Fund revenues of $1,249,297 when compared to the Final Budget, which is summarized in Table A.
Table A – General Fund Revenues
Revenue
Source
Final
Budget
FY 2024-25
Final
Results
FY 2024-25
Difference % of Budget
Property Tax $8,032,500 $8,088,157 $55,657 100.7%
TOT 4,000,000 4,084,758 84,758 102.1%
Sales Tax 2,300,000 2,297,404 (2,596) 99.9%
Parking Meter 1,700,000 1,734,993 34,993 102.1%
Parking Violations 1,350,000 1,538,560 188,560 114.0%
Planning Services 1,220,000 1,150,732 (69,268) 94.3%
Investment Earnings 400,000 892,952 492,952 223.2%
2 March 3, 2026 Item 12
City Council Agenda Report
FY 2024-25 Final Financial Report and FY 2025-26 Mid-Year Financial Report March 3, 2026
Other Revenue 4,003,430 4,467,671 464,241 111.6%
Total $23,005,930 $24,255,227 $1,249,297 105.4%
Overall, roughly all General Fund revenue sources came in as projected. Parking meter, TOT, and parking violations all came in overbudget, including property tax. The surplus in the other revenue grouping is a reflection of additional revenue postings for activities such as parking permits, moving violations, penalties, red light enforcement, contributions, and insurance reimbursements. The largest surplus was for investment earnings due to additional cash on balance, favorable interest rates, better rates of return than projected, and the stewardship of the City’s investment advisors, Optimized Investment Partners. While total General Fund revenues reflect a positive year-end variance, some activities such as planning services and grant reimbursements did come in slightly under budget.
General Fund Expenditures
General Fund operating expenditures were increased to $17,155,684 during the FY 2024-25 MidYear Budget process. Subsequent Council actions adjusted the budget slightly for a final operating expenditure budget of $17,166,481. The following Final Results displayed in Table B indicate that total General Fund operating expenditures ended the fiscal year slightly under budget reflecting a savings of $90,864 when compared to the Final Budget.
Table B – General Fund Operating Expenditures
Program Final
Budget
FY 2024-25
Final
Results
FY 2024-25
Difference % of Budget
General Government* $6,444,810 $6,758,747 ($313,937) 104.9% Public Safety** 8,791,589 8,682,202 109,387 98.8%
Public Works 829,613 646,868 182,745 78.0%
Non-departmental 842,570 868,891 (26,321) 103.1%
Equipment replacement 257,899 118,909 138,990 46.1%
Total $17,166,481 $17,075,617 $90,864 99.5%
* Includes City Council, City Manager, Legal services, Admin services, and Planning services. **Includes Law enforcement, Fire services; Lifeguard services; and Parking enforcement.
The negative variance for general government expenditures is primarily attributed to unanticipated increases in risk management services and claims, which was offset by an insurance claim revenue reimbursement. Non-departmental activity reflects greater expenditures than anticipated for community support programs due to additional TOT revenues received. These overages were offset by savings from services and activities in public works, and equipment replacement expenditures.
Capital Improvement/Special Projects
The calculated Final Results for capital projects totaled $2,899,866 and the Final Results for special projects totaled $191,058. As depicted in Table C, final results show measurable savings between capital and special projects totaling a combined $6,401,995. Since these projects are typically not completed in the same fiscal year that funds are allocated, staff is recommending that the City Council approve the carry-over of FY 2024-25 unspent funds in the amount of $4,987,659 for capital projects and $1,122,910 for special projects. A listing of all encumbrances and continuing appropriations (funds to be carried over to the following fiscal year) is included as Attachment B.
3 March 3, 2026 Item 12
City Council Agenda Report
FY 2024-25 Final Financial Report and FY 2025-26 Mid-Year Financial Report March 3, 2026
Table C- Capital & Special Projects
Program Final
Budget
FY 2024-25
Final
Results
FY 2024-25
Unspent
(carry-over)*
% of
Budget
General Fund CIP $4,971,925 $2,458,116 $2,513,809 49.4% Open Space CIP 1,922,398 206,364 1,716,034 10.7%
TransNet CIP 578,000 191,159 386,841 33.1%
Clean Water CIP 482,322 44,227 438,095 9.2%
Total CIP $7,954,645 $2,899,866 $5,054,779 36.5%
Special Projects 1,538,274 191,058 1,347,216 12.4%
Total $9,492,919 $3,090,924 $6,401,995 32.6%
*Only $4,987,659 of unspent capital improvement budget and $1,122,910 of special projects will be carried over to FY 2025-26.
Measure Q Fund
Final results indicate that Measure Q revenues surpassed the $3.50 million budget by $458,543 as displayed in Table D. This outcome points to online purchases and vehicle sales coming in greater than projected, plus additional interest earnings resulting from the high Measure Q balance during the year.
The final Measure Q budget for FY 2024-25 expenditures was $15,216,225. Actual Measure Q expenditures for the year totaled $6,885,074. Although the final results in Table D indicate a savings of $8,331,151 in Measure Q expenditures, the majority of remaining unspent funds will be encumbered and carried over to FY 2025-26.
Table D – Measure Q Fund
Revenue Final
Budget
FY 2024-25
Final
Results
FY 2024-25
Difference % of Budget
Measure Q $3,500,000 $3,958,543 $458,543 113.1%
Expenditures Final
Budget
FY 2024-25
Final
Results
FY 2024-25
Unspent
(carry-over*)
% of Budget
Undergrounding – General $326,263 $259,262 $67,001 79.46% UUD1A – Stratford Ct South 7,261,118 6,339,274 921,844 87.30% UUD-X1A – Crest Canyon 6,991,052 104,587 6,886,465 1.50% UUD1B – Stratford North 450,644 178,358 272,286 39.58%
UUD2 – Beach Colony 8,364 2,539 5,825 30.36%
UUD3 – South Hill 87,784 1,054 86,730 1.20%
Pavement Rehab 91,000 - 91,000 0.00%
Total $15,216,225 $6,885,074 $8,331,151 45.25%
*Only $1,352,130 of unspent Measure Q budget will be carried over to FY 2025-26. On September 8, 2025, the City Council approved a carry-over of $6,886,465 from FY 2024-25 to cover the construction cost of UUD-X1A.
Based on final Measure Q revenues of $3,958,543 (including earned interest) and $6,885,074 million in expenditures, the final FY 2024-25 ending fund balance, including unspent funds that 4 March 3, 2026 Item 12
City Council Agenda Report
FY 2024-25 Final Financial Report and FY 2025-26 Mid-Year Financial Report March 3, 2026
will be carried over to FY 2025-26, is at $7,449,974. Staff is recommending carrying over $1,352,130 of unspent funds as part of the FY 2025-26 Mid-Year Budget action.
General Fund Reserves
Table E provides a summary of the changes in General Fund reserves including the Housing and Capital Improvement Reserve funds. In comparison to the Mid-Year Budget approved in April 2025, the Final Reserve Summary for FY 2024-25 shows an increase of 4.72% to the General Fund Contingency from 30.08% to 34.80%, and a total General Fund Contingency balance increase of $820,884 from $5,683,024 to $6,503,908. The final balances will be carried over to the FY 2025-26 Reserve Summary to calculate the new estimated projected General Fund Contingency at June 30, 2026.
Table E – General Fund Reserves & Transfers
Account Budget
Update
FY 2024-25
(6/17/24)
Mid-Year
Budget
FY 2024-25
(4/7/25)
Final
Results
FY 2024-25
(1/26/26)
General Fund Contingency 25.69% 30.08% 34.80%
General Fund Contingency $4,837,122 $5,683,024 $6,503,908 Pension Reserve* 4,760,000 4,781,894 4,977,684
Housing Reserve 1,650,000 1,650,000 1,650,000
Self-Insurance 300,000 300,000 410,216
Leave Liability 100,000 100,000 100,000
Equipment Replacement 678,460 657,342 796,332
Encumbrances - - 67,655
Total General Fund $12,325,582 $13,172,260 $14,505,795
Capital Improvements Reserve 3,150,000 3,150,000 3,150,000 *A total additional Pension Reserve of $1.90 million is reported in the Water and Wastewater Funds, resulting in a Citywide Pension Reserve balance of $6.88 million.
Debt Management
As of June 30, 2025, the City had a total outstanding debt balance of approximately $20.05 million. Of that amount, roughly $13.12 million or 65% was a General Fund debt obligation.
The Wastewater Fund accounts for approximately $4.56 million or 23% of that total balance and $2.37 million or 12% is attributed to TransNet funds. While largely deliberated during FY 2024-25, the most recent $5.00 million IBank loan to fund construction of Undergrounding Program district projects X1A Crest Canyon and 1B Stratford Court North was executed in Fiscal Year 2025-26.
Table F – City Debt
Debt Purpose Issued Term Amount Balance Repayment
Source
Final
Payment
State Water
Resources
Control Board
- Clean Water
State
Revolving
Fund
21st Street
Sewer Pump
Station
Replacement
Feb
2010
20 years
$5,000,000 $2,425,114 Wastewater
Fund
Aug
2032
5 March 3, 2026 Item 12
City Council Agenda Report
FY 2024-25 Final Financial Report and FY 2025-26 Mid-Year Financial Report March 3, 2026
IBank Loan San Elijo Joint
Powers Authority
Pipeline
Oct
2015
20 years
3,535,354 2,130,240 Wastewater
Fund
Aug
2035
SANDAG's
Debt
Financing
Program
ROW
Improvements
Jul
2014
30 years
3,000,000 2,370,000 TransNet
Funds
Jun
2044
IBank Loan City Hall Jun
2016
30 years
16,161,000 13,073,771 General
Fund
Aug
2045
County of
San Diego
Finance
Agreement
Regional
Communication
System Upgrade
Aug
2016
10 years
435,436 49,130 General
Fund
Jun
2026
IBank Loan* Undergrounding
Program: X1A &
1B
Nov
2025
10 years
5,000,000 5,000,000 Measure Q
Fund
Aug
2035
Total $33,131,790 $25,048,255
*Issued during Fiscal Year 2025-26.
FISCAL YEAR 2025-26 MID-YEAR FINANCIAL REPORT
The original FY 2025-26 Budget, was approved on June 16, 2025. The adopted budget included capital and special project expenditures related to the City Work Plan that was discussed by the City Council during the Goals & Priorities Workshop on March 5, 2025. The original adopted FY 2025-26 Operating and Capital Budget totaled approximately $48.38 million with a General Fund Contingency of 21.33% (78 days of operations) and included transfers of $250,000 to the Pension Reserve Fund and $250,000 to the Housing Reserve Fund. Subsequent Council actions since July 1, 2025, have amended the total expenditure budget to a current total of approximately $55.33 million.
In order to present the FY 2025-26 Mid-Year Financial Report with the most updated information, the July 1, 2025, beginning balances have been updated to reflect the FY 2024-25 Final Results as previously discussed in this report.
After a thorough review of financial data through the second quarter (July-December 2025) of FY 2025-26, as discussed in detail below and presented in Attachment A as Exhibit A, staff is recommending increasing General Fund revenues by $936,180 and decreasing General Fund expenditures by $23,000. Accounting for excess equity from FY 2024-25 Final Results, current year-end projections, and General Fund Contingency goals, additional transfers of $425,000 are recommended to both the Housing and Pension Reserve Funds plus $850,000 to the Capital Reserve Fund. Staff is also recommending carrying over funds from FY 2024-25, resulting in a revised General Fund Contingency of $5,324,903 million at June 30, 2026 and reflecting a 25.17% contingency (92 days of operations), matching the Council’s General Fund Contingency goal of 25%.
General Fund Revenues
Staff has reviewed revenues through the second quarter of the current fiscal year and an increase of $936,180 in General Fund revenue is being recommended. Below is information regarding the revenues received for the first half of the fiscal year in each of the City’s largest sources of revenue, which is summarized, along with recommended adjustments in Table I.
Property Tax
Property tax is the City’s largest source of revenue and accounts for 36% of the City’s FY 2025- 26 General Fund revenues. The City receives 12 property tax apportionments per fiscal year (July 6 March 3, 2026 Item 12
City Council Agenda Report
FY 2024-25 Final Financial Report and FY 2025-26 Mid-Year Financial Report March 3, 2026
1 – June 30). To date, the City has received six property tax apportionments, with the largest of these distributions received in December. As of January 2026, the total property tax received by the City for the first six periods in FY 2025-26, is $4.74 million. In comparison to prior year collections, current receipts indicate that property tax is 6.0% above prior year collections through the same periods. Applying a 6.0% increase to FY 2024-25 final results of approximately $8.09 million, would result in a FY 2024-25 year-end projection of $8.57 million.
Another available resource that staff utilizes to project property tax revenue is the County of San Diego tax/revenue accountability report that is provided to the City monthly. This report includes total property tax allocated to Del Mar based on the property tax bill that was sent out to residents for the current year. The reported amount includes corrections, supplemental bills, prior year escapes and penalties and interest. Staff estimates that 98% of expected collections will be received by the end of the year, which for FY 2025-26 is projected at $8.46 million. Based on the data and revenues received to date, and reports provided by the County of San Diego, staff is recommending a modest increase of $61,000 above the adopted budget.
Transient Occupancy Tax (TOT)
TOT is the City’s second largest revenue source and accounts for 19% of the City’s FY 2025-26 General Fund revenues. The City receives TOT payments on a monthly basis. Final Results for FY 2024-25 reflect a 7.5% increase over the previous year’s results.
In comparison to the prior year, the first half collections (July-December 2025) for FY 2025-26 show revenue coming in approximately 9.1% higher than FY 2024-25 through the same time period. The following Table G summarizes Mid-Year and Final Results for the past five fiscal years.
Table G. FY 2021-22 thru FY 2025-26 Mid-Year and Year-End TOT Results Fiscal Year
Mid-Year
Results
% of
Total
Final
Results
Difference
to PY
2025-26 $2,409,836 55.59% $4,335,000* $250,242
2024-25 2,209,192 54.08% 4,084,758 285,720
2023-24 2,123,582 55.90% 3,799,038 (17,354)
2022-23 2,146,670 56.25% 3,816,392 396,526
2021-22 1,851,155 54.13% 3,419,866 1,627,776
*Budget projection for TOT revenue.
Historical data indicates that receipts collected through December of each year typically represent approximately 55.1% of the total revenue collected by the end of the year. Applying this average to the Mid-Year Results yields a year-end estimate of $4.37 million. Based on the current 9.1% increase in TOT collections through December, the projected FY 2025-26 total over prior year results would be approximately $4.46 million. Accounting for current year trends, staff is recommending an increase of $175,000.
In addition to the aforementioned adjustment, staff is also recommending a reduction of $65,000 in TOT revenue associated with Short-Term Rentals (STR). The adopted FY 2025-26 Operating and Capital Budget included $193,750 in anticipated revenues from permitted STR activities over the final quarter of the fiscal year. The proposed revenue adjustment is based on the updated 7 March 3, 2026 Item 12
City Council Agenda Report
FY 2024-25 Final Financial Report and FY 2025-26 Mid-Year Financial Report March 3, 2026
timing of implementation of the City’s STR regulations and associated TOT revenue collections for the remainder of FY 2025-26.
Sales Tax
Sales tax is the City’s third largest source of revenue and accounts for 10% of the City’s total General Fund revenues. The City receives sales tax payments on a monthly basis with quarterly true-up payments, which the State correlates with the calendar year not the fiscal year. To date, the City has received $970,389 in sales tax receipts. When compared to the same quarter receipts last year, third quarter receipts (July-September 2025) came in 4.5% higher primarily driven by performance in the restaurants and hotels group and state and county pool allocations.
Third quarter receipts were generated geographically 19% by businesses on the eastside and 23% by businesses on the westside of Camino del Mar, 30% by Del Mar Fairgrounds, 10% from other locations, and 18% from state and county pools. The City’s sales tax consultant’s (HdL) forecasts anticipate Fiscal Year 2025-26 revenue to remain relatively flat at $2.34 million citing contributing factors including inflation, high interest rates, weaker consumer confidence, and lower household discretionary spending.
Staff is not recommending any adjustments to the current $2.30 million budget and will continue to monitor sales tax revenue and return to the City Council if adjustment is necessary. Table H below includes historical sales tax data by calendar year quarter. The last three quarters of the current fiscal year are estimated projections.
Table H. FY 2021-22 thru FY 2025-26 Quarterly Sales Tax Receipts Fiscal Year
3 rd Quarter
Jul-Sep
Receipts
4 th Quarter
Oct-Dec
Receipts
1 st Quarter
Jan-Mar
Receipts
2 nd Quarter
Apr-Jun
Receipts
Totals
2025-2026 $809,036 $482,000* $360,000* $649,000* $2,300,000* 2024-2025 773,839 502,486 373,679 647,400 2,297,404
2023-2024 760,245 433,535 354,742 647,943 2,196,465
2022-2023 813,190 509,776 346,379 636,917 2,306,262
2021-2022 644,065 476,648 368,787 579,216 2,068,716
*Projected quarterly receipts and totals.
Parking Violation Revenue
Parking violation revenue is anticipated to come in similar to prior year final results. Adjustments to fees, and improved equipment that increased the ability to acquire vehicle registered owner data, continue to factor into strong revenue performance. Through the first six months of the fiscal year, attractive weather, visitor demand, and experienced staff are also contributing factors to the projected revenue generation. Staff is recommending increasing parking violation revenue by $150,000, resulting in an amended revenue estimate of $1.55 million.
Parking Meter Revenue
Parking meter revenue for the first six months of the fiscal year came in 6.93% higher than the prior year through the same period largely driven by the same factors benefitting parking violation revenues, plus maintenance of functional meters with little downtime. Staff is recommending increasing parking meter revenue by $165,000, resulting in a new revenue projection of $1.70 million.
8 March 3, 2026 Item 12
City Council Agenda Report
FY 2024-25 Final Financial Report and FY 2025-26 Mid-Year Financial Report March 3, 2026
Investment Earnings
An increase of $390,000 for projected investment earnings is recommended based on prior year results and current year trends. Estimated cash balances, favorable rates of return, and good guidance from the City’s investment advisors are supporting the proposed adjustment.
Other General Fund Revenue Adjustments
Based on actual receipts received to date, a net increase of $60,180 is being recommended in other revenues. This adjustment combines additional contributions from penalties, rental income, and miscellaneous sources. These gains are partially offset by reductions in planning and building services.
The following Table I summarizes the requested General Fund Mid-Year revenue adjustments.
Table I. Recommended FY 2025-26 General Fund Revenue Adjustments Account Current Budget Recommended
Adjustment
Amended
Budget
Property Tax $8,394,000 $61,000 $8,455,000
TOT 4,353,750 110,000 4,463,750
Sales Tax 2,300,000 - 2,300,000
Parking Violations 1,400,000 150,000 1,550,000
Parking Meters 1,535,000 165,000 1,700,000
Investment Earnings 400,000 390,000 790,000
Other Revenue 5,011,470 60,180 5,071,650
Total $23,394,220 $936,180 $24,330,400
Other Non-General Fund Revenues
In addition to the General Fund adjustments described above, staff will be requesting an increase of $41,530 in the Supplemental Law Enforcement Fund to account for the actual funds received from the Revenue Growth program, and a combined increase of $70,860 based on grants and other miscellaneous revenues. A revenue reduction of $57,190 is also recommended for the Workers’ Compensation Fund based on final receipts for the year.
Included in this report is an increase of $200,000 to the Water Fund and $85,000 to the Wastewater Fund that does not have an impact to the General Fund. This increase is largely due to increased usage revenues based on current activity.
General Fund Operating Expenditures
Staff has reviewed expenditures through the second quarter of the current fiscal year and a net decrease of $23,000 in General Fund expenditure adjustments is being recommended. Below is information regarding the more significant General Fund adjustments being proposed, which are summarized along with the recommended adjustments in Table J.
Legal Services
The City of Del Mar contracts with Devaney Pate Morris & Cameron, LLP for City Attorney legal services. Based on demand for services through the mid-year including ongoing high-risk litigation and claims requiring additional legal counsel, and anticipated needs through the year-end, staff is recommending an increase of $50,000 for legal services. 9 March 3, 2026 Item 12
City Council Agenda Report
FY 2024-25 Final Financial Report and FY 2025-26 Mid-Year Financial Report March 3, 2026
Fire Protection Services
In June 2025, the City of Encinitas notified Del Mar and Solana Beach that they would be leaving the Cooperative Management Agreement (COOP) between the three cities for shared fire management services effective March 31, 2026. On January 20, 2026 the City Council approved a new Cost Sharing Agreement with the City of Solana Beach for Fire Management Transition Services. Furthermore, on February 17, 2026, the City Council is being asked to approve the first amendment to this agreement to provide interim fire prevention services including the addition of shared costs for a Fire Marshal and Fire Prevention Technician positions. Per this agreement and the estimated costs for the remainder of the fiscal year, staff are recommending an increase of $60,000 to support the transition plan. This adjustment takes into account the original budget to fund the COOP and anticipated budget savings for the final quarter of the fiscal year.
Other Services
A net decrease of $148,000 is also requested across other General Fund services. Reductions for storm drains and risk management are based on funding adjustments and final insurance premium costs. The reduction for building services is based on the current year trend for building permit and inspections services, and has a related revenue reduction. These reductions are partially offset by an increased need for contractual current planning services, and increased parking enforcement services, which also has a related revenue increase.
Equipment Replacement
A requested adjustment of $15,000 is recommended to replace the City’s security server. This will enhance facility access control and video security. The security server hosts mission critical applications including the door access control system and the video security system. It was installed in 2018 with the new Civic Center. The hardware is at the end of its useful life and running out of storage space for the video archives.
Table J. Recommended FY 2025-26 General Fund Expenditure Adjustments Program Current
Budget
Enc &
Approp
Recommended
Adjustment
Amended
Budget
General Government $6,973,460 $9,787 ($32,000) $6,951,247 Public Safety 9,166,860 - 84,000 $9,250,860
Public Works 1,251,500 57,868 (90,000) $1,219,368
Non-Departmental 907,910 - - $907,910
Equipment Replacement 112,240 - 15,000 $127,240
Total $18,411,970 $67,655 ($23,000) $18,456,625
Other Non-General Fund Expenditure Adjustments
Recommended adjustments to Non-General Fund expenditures are included in Table K below.
Table K. Recommended FY 2025-26 Non-General Fund Expenditure Adjustments Fund Amount Description
Gas Tax ($18,450) Less street maintenance staff time and wooden light pole repair costs, and more street landscaping
operations and supplies.
Open Space 27,000 Less seasonal staff operations at Powerhouse; more beach vehicle maintenance; and more park landscape
rejuvenation.
10 March 3, 2026 Item 12
City Council Agenda Report
FY 2024-25 Final Financial Report and FY 2025-26 Mid-Year Financial Report March 3, 2026
PEG 63,540 New Cablecast system hardware and pro-services to comply with new State mandate (SB 707) by July 1,
2026 requiring public meetings to be closed captioned.
Capital
Improvement
(1,750,000) JDB Pavement Improvement Project cost savings based on bid results.
Total ($1,677,910)
Included in this report are also recommended adjustments to the Enterprise funds that do not impact the General Fund Contingency. This includes an increase of $295,000 to the Water Fund and $80,250 to the Wastewater Fund, which are largely due to increased operational costs including vehicle maintenance, supplies, and contractual expenses.
Reserves
An updated FY 2025-26 Reserve Summary Report is included with this report as part of Exhibit A within Attachment A, which reflects the following:
Updated beginning balances at July 1, 2025 based on FY 2024-25 final results; Current adopted budget which includes adjustments approved by the City Council from July 1, 2025 to February 3, 2026;
Encumbrances and Continuing Appropriations (Attachment B) for committed contracts or capital projects that were not completed by June 30, 2025; Additional adjustments recommended for approval, as described above; and, Additional reserve transfers recommended for approval which include: an additional $425,000 to the Housing Reserve, an additional $425,000 to the Pension Reserve, and $850,000 to the Capital Reserve. An allocation of $900,000 in Capital Reserves for the JDB Pavement Improvement Project is being returned to the reserve balance as a result of the project cost savings which further improves the total year-end Capital Reserve balance to $4 million.
Table L below displays the estimated ending General Fund reserve balances at June 30, 2026, reflecting adjustments and additional reserve transfers recommended by staff as part of this MidYear Budget report.
Table L. General Fund Reserve Balances
Account FY 2025-26
Original Budget
(6/16/25)
FY 2025-26
Mid-Year Budget
(3/3/26)
Difference
General Fund Contingency 21.33% 25.17% 3.84%
General Fund Contingency $4,341,582 $5,324,903 $983,321 Pension Reserve* 5,200,000 5,842,684 642,684
Housing Reserve 1,900,000 2,325,000 425,000
Self-Insurance 300,000 377,216 77,216
Leave Liability 100,000 100,000 -
Equipment Replacement 545,102 669,092 123,990
Total General Fund $12,386,684 $14,638,895 $2,252,211
Capital Improvement Reserve 2,250,000 4,000,000 1,750,000 *An additional $1.90 million in Pension Reserve Funds are held in the Water and Wastewater Funds. 11 March 3, 2026 Item 12
City Council Agenda Report
FY 2024-25 Final Financial Report and FY 2025-26 Mid-Year Financial Report March 3, 2026
Pension Reserve
Per the most recent CalPERS Actuarial Report for June 30, 2024, the City’s pension assets totaled approximately $47.81 million and had a funded ratio of 80.7% (Attachment G). As of June 30, 2025, the City has a total Unfunded Accrued Pension Liability estimated at approximately $17.80 million. When accounting for Governmental Fund and Enterprise Fund pension reserve balances of approximately $6.88 million on June 30, 2025, the adjusted unfunded pension liability is reduced to an estimated $10.92 million.
The City’s Pension Reserve Policy established a 15-year schedule to achieve a 100% funded ratio by Fiscal Year 2031-32 for Governmental Fund pension obligations. Approximately 84% of the City’s total unfunded pension liability is attributed to Governmental Fund salary employee benefits. As of June 30, 2025, the Governmental Fund share of the pension liability was 33% funded. After accounting for the $250,000 Pension Reserve allocation in the adopted budget, and the additional $425,000 transfer recommended in this report, it is estimated that annual pension reserve contributions of approximately $1.10 million would be required over the next six years to achieve the 100% funded ratio by Fiscal Year 2031-32 for Governmental Fund pension obligations. Per prior Council direction, this policy has remained flexible to allow for the funding of other competing priorities.
Measure Q Fund
Revenues
Measure Q revenues allocated to the City are made up of 1% of all taxable transactions that occur within the Del Mar city boundary, online purchases made by Del Mar residents, and vehicle purchases by Del Mar residents from out-of-town vendors and car dealers.
To date in the current fiscal year, the City has received $1,317,229 in Measure Q tax receipts.
Based on current trends, including interest earnings, and quarterly reports prepared by HdL, the City’s sales tax consultant, the Measure Q revenue for FY 2025-26 is projected as budgeted at approximately $3.68 million. Staff will continue to monitor Measure Q revenue and will request additional adjustments as necessary.
The adopted FY 2025-26 Operating and Capital Budget included an estimated $12 million in additional Measure Q Fund revenues to be sourced from an anticipated California Infrastructure Economic Development Bank (IBank) loan. Subsequent to the final budget adoption on June 16, 2025, the City Council approved on September 22, 2025 the final loan amount at $5 million to fund construction of Undergrounding Program projects Crest Canyon (X1A) and Stratford Court North (1B). The net Measure Q revenue adjustment accounts for the reduced final loan amount.
Expenditures
Through the midpoint of Fiscal Year 2025-26, the Undergrounding Program has completed multiple project phases, as follows: Utility companies’ construction and anticipated overall completion for Stratford Court South (UUD 1A); bidding and City Council award of construction contracts, along with the initiation and continuation of City construction, homeowner private service laterals, and utility companies’ construction for Crest Canyon (UUD X1A); continued design for Stratford Court North (UUD 1B); and Undergrounding Program cash flow analysis to determine the timing of future phases, including Beach Colony (UUD 2) and UUD 25th Street.
The total available funding for all Measure Q projects is currently at $14.24 million, which includes the $1,352,130 in carry over funds from FY 2024-25, and the $6,886,465 in carry over funds 12 March 3, 2026 Item 12
City Council Agenda Report
FY 2024-25 Final Financial Report and FY 2025-26 Mid-Year Financial Report March 3, 2026
previously authorized by City Council in September 2025. Based on a review of all current activities and available resources, no budget adjustments are recommended.
Reserves
Based on the final FY 2024-25 year-end results, revenues received to date, and projected activity through the remainder of the fiscal year, the Measure Q fund balance at June 30, 2026, is projected at $1,883,009.
Finance Committee Feedback
Staff presented the FY 2024-25 Final Financial Report and FY 2025-26 Mid-Year Financial Report to the City’s Finance Committee on February 18, 2026. The Committee was pleased with the positive results and voted unanimously to support staff’s recommendation to approve the budget adjustments as included in the report. The committee also provided feedback and suggestions on formatting and level of detail which have been incorporated in this agenda report.
OVERALL SUMMARY
After a thorough review of financial activity through January 2026 for all funds, staff is recommending a net total revenue decrease of $5,673,620; a net total expenditure decrease of $1,325,660; and a net carry-over of unspent FY 2024-25 funds totaling $5,146,764. Also recommended are additional transfers of $425,000 to both the Pension Reserve and Housing Reserve, and $850,000 to the Capital Improvement Reserve. If these adjustments are approved, the new ending General Fund Contingency balance at June 30, 2026, will increase from $4,341,582 as adopted on June 16, 2025, to $5,324,903, which represents a 25.17% contingency (92 days of operations) satisfying the Council’s 25% General Fund Contingency goal.
FISCAL IMPACT:
Council approval of the recommended action for this agenda item will result in amending the Fiscal Year 2025-26 Operating and Capital Budget as included in Exhibit A of Attachment A.
ENVIRONMENTAL IMPACT:
The proposed City Council action does not constitute a “project” under the definition set forth in California Environmental Quality Act (CEQA) Guidelines Section 15378 because it will not have a potential to result in a direct or indirect physical change in the environment and is, therefore, not subject to CEQA. No further action under CEQA is required.
NEXUS TO CITY COUNCIL GOALS AND PRIORITIES:
This item is operational in nature and is not directly related to the City Council’s list of Goals and Priorities.
ATTACHMENTS
Attachment A - Resolution 2026-XX Amending the Fiscal Year 2025-26 Operating and Capital Budget
Attachment B - Fiscal Year 2024-25 Encumbrances and Continuing Appropriations Attachment C - Independent Auditors’ Communication regarding internal controls over financial reporting and compliance performed in accordance with Government Auditing Standards
Attachment D - Independent Accountants’ Report regarding appropriations limit worksheets Attachment E - Fiscal Year 2024-25 Final Financial Report Attachment F - Fiscal Year 2024-25 General Fund Cash Flow Report Attachment G - Pension Funding History
13 March 3, 2026 Item 12
Attachment A
RESOLUTION NO. 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL
MAR, CALIFORNIA, AMENDING THE FISCAL YEAR 2025-2026
OPERATING AND CAPITAL BUDGET
WHEREAS, on June 16, 2025, the City Council of the City of Del Mar adopted Resolution 2025-17, approving the Fiscal Years 2025-2026 and 2026-2027 Operating and Capital Budget; and
WHEREAS, a comprehensive second quarter review of expenditures and revenues through December 31, 2025, has been completed; and WHEREAS, based on the results of the review, adjustments to the Fiscal Year 2025-2026 Operating and Capital Budget are needed to cover costs and account for anticipated revenues through the end of the current fiscal year (Exhibit “A”); and WHEREAS, it is necessary to purchase a replacement security server from the Equipment Replacement Fund in an amount not to exceed $15,000 to enhance facility access control and video security at the Civic Center.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Del Mar, California, that the above recitals are true and correct.
BE IT FURTHER RESOLVED that the Fiscal Year 2025-2026 Operating and Capital Budget is amended as shown in Exhibit “A” to the Resolution.
BE IT FURTHER RESOLVED that the City Council does hereby provide authorization to the City Manager to approve the purchase of a replacement security server from the Equipment Replacement Fund for Fiscal Year 2025-2026 for an amount not to exceed $15,000.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Del Mar, California, at a Regular Meeting held on the 3rd day of March 2026. ________________________________
Tracy Martinez, Mayor
City of Del Mar
14 March 3, 2026 Item 12
Resolution No. 2026-XX
APPROVED AS TO FORM:
________________________________
Christina Cameron, City Attorney
City of Del Mar
ATTEST AND CERTIFICATION:
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF DEL MAR
I, Sarah Krietor, Administrative Services Manager/City Clerk of the City of Del Mar, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 2026-XX, adopted by the City Council of the City of Del Mar, California, at a Regular Meeting held the 3rd day of March 2026, by the following vote:
AYES:
NOES:
RECUSE:
ABSENT:
ABSTAIN:
________________________________
Sarah Krietor, Administrative Services
Manager/City Clerk
City of Del Mar
15 March 3, 2026 Item 12
BEGINNING ENDING
BALANCE O & M CIP BALANCE
JUL 1, 2025 REVENUES EXPENDITURES EXPENDITURES IN (OUT) JUN 30, 2026 ACTUAL FY 2026 FY 2026 FY 2026 FY 2026 FY 2026 ESTIMATE CONTINGENCY 25.17% 6,503,908 24,058,500 (18,146,830) - 530,718 $ (7,621,393) 5,324,903 RESTRICTED:
SELF-INSURANCE 410,216 - (33,000) - - - 377,216
DESIGNATED:
ENCUMBRANCES 67,655 - (67,655) - - - -
COASTAL PARKING REVENUE - 81,900 (81,900) - - - -
HOUSING RESERVE 1,650,000 - - - 675,000 - 2,325,000
PENSION RESERVE 4,977,684 190,000 - - 675,000 - 5,842,684 LEAVE LIABILITY 100,000 - - - - - 100,000
EQUIPMENT REPLACEMENT 796,332 - (127,240) - - - 669,092 TOTAL GENERAL FUND 14,505,795 24,330,400 (18,456,625) - 1,880,718 (7,621,393) 14,638,895 3,677,380 7,449,974 - (9,244,345) - - 1,883,009
NOTE PROCEEDS - 5,000,000 - (5,000,000) - - -
TOTAL MEASURE Q FUND 7,449,974 8,677,380 - (14,244,345) - - 1,883,009 107,000 221,777 - - - (328,777) -
119,560 19,980 (1,025,810) - 886,270 - -
621,392 - (1,543,230) - 921,838 - -
DESIGNATED
ENCUMBRANCES 302,404 - - (302,404) - - -
CAPITAL IMPROVEMENT PROJECTS 1,418,673 - - (1,453,591) 34,918 - - OPEN SPACE ACQUISITION 86,388 - - - - - 86,388
TREE RESERVE 41,017 - - - - - 41,017
TOTAL OPEN SPACE FUND 429,809 2,040,065 (1,543,230) (1,755,995) 956,756 - 127,405 201,530 411 - - - (201,941) -
46,000 15,529 (61,250) - 2,072 - 2,351
CITY OF DEL MAR
RESERVE SUMMARY
FISCAL YEAR 2025-2026
TRANSFERS
MID-YEAR FINANCIAL REPORT
GENERAL FUND
MEASURE Q
ROAD MAINTENANCE REHABILITATION ACCT
GAS TAX FUND
OPEN SPACE FUND
SUPPLEMENTAL LAW ENFORCEMENT FUND
REGIONAL COMMUNICATIONS FUND
Attachment A - Exhibit A1
16 March 3, 2026 Item 12
BEGINNING ENDING
BALANCE O & M CIP BALANCE
JUL 1, 2025 REVENUES EXPENDITURES EXPENDITURES IN (OUT) JUN 30, 2026 ACTUAL FY 2026 FY 2026 FY 2026 FY 2026 FY 2026 ESTIMATE
CITY OF DEL MAR
RESERVE SUMMARY
FISCAL YEAR 2025-2026
TRANSFERS
MID-YEAR FINANCIAL REPORT
75,000 159,775 (61,500) - - - 173,275
- 158,004 (61,660) - - - 96,344
154,000 679,196 (107,810) - - - 725,386
37,200 8,267 (75,440) - 29,973 - -
2,740,250 - (4,243,494) 1,503,244 - -
ENCUMBRANCES 1,166,296 - (1,166,296) - -
RESERVE FOR CAPITAL 3,150,000 - - - 850,000 4,000,000
DEBT SERVICE - - (899,880) - 899,880 - -
TOTAL CAPITAL IMPROVEMENT FUND 4,316,296 2,740,250 (899,880) (5,409,790) 3,253,124 - 4,000,000 2,248,900 453,852 - (3,215,910) 513,158 - -
649,000 3,487 - (649,000) - - 3,487
- 38,130 - (36,000) - - 2,130
362,000 502,835 (322,750) - - - 542,085
NET POSITION 1,799,681 4,995,000 (5,189,190) - - (1,094,455) 511,036 RESTRICTED:
CONTRIBUTED CAPITAL 4,028,272 - - - - - 4,028,272
DESIGNATED
ENCUMBRANCES - - - - - - -
SELF-INSURANCE 50,000 - - - - - 50,000
RATE STABILIZATION 200,000 - - - - - 200,000
CAPTIAL REPLACEMENT 470,000 - - (1,036,455) 916,455 - 350,000 NET PENSION LIABILITY (1,962,119) - - - - - (1,962,119) PENSION RESERVE 1,000,000 - - - - - 1,000,000
OPERATING RESERVE 500,000 - - - 150,000 - 650,000
EQUIPMENT REPLACEMENT 200,000 - (28,000) - 28,000 - 200,000 UTILITY PLANT IN SERVICE 7,423,130 - (385,000) - - - 7,038,130 TOTAL WATER FUND 13,708,964 4,995,000 (5,602,190) (1,036,455) 1,094,455 (1,094,455) 12,065,319
PEG FEE FUND
GRANTS FUND
HOUSING FUND
AB 939 FUND
CAPITAL IMPROVEMENT FUND
SPECIAL PROJECT FUND
TRANSNET FUND
RTCIP
WORKERS' COMPENSATION FUND
WATER FUND
17 March 3, 2026 Item 12
BEGINNING ENDING
BALANCE O & M CIP BALANCE
JUL 1, 2025 REVENUES EXPENDITURES EXPENDITURES IN (OUT) JUN 30, 2026 ACTUAL FY 2026 FY 2026 FY 2026 FY 2026 FY 2026 ESTIMATE
CITY OF DEL MAR
RESERVE SUMMARY
FISCAL YEAR 2025-2026
TRANSFERS
MID-YEAR FINANCIAL REPORT
NET POSITION - 612,500 (911,651) - 299,151 - -
-
DESIGNATED -
UTILITY PLANT IN SERVICE 536,251 - 536,251
ENCUMBRANCES 515,984 (145,249) (370,735) - -
CAPITAL REPLACEMENT - 244,790 (575,679) 330,889 -
TOTAL CLEAN WATER FUND 1,052,235 857,290 (1,056,900) (946,414) 630,040 - 536,251 NET POSITION 1,940,691 4,515,960 (4,781,990) - - (1,061,980) 612,681 -
RESTRICTED
IBANK RESERVE 228,828 - - - - - 228,828
CONTRIBUTED CAPITAL 650,814 - - - - - 650,814
LOAN RESERVE-STATE REVOLVING - 332,979 - - - - 332,979
DESIGNATED
ENCUMBRANCES - - - - - - -
SELF-INSURANCE 50,000 - - - - - 50,000
CAPITAL REPLACEMENT 500,000 - - (1,005,080) 855,080 - 350,000 NET PENSION LIABILITY (1,962,119) - - - - - (1,962,119) PENSION RESERVE 900,000 - - - - - 900,000
OPERATING RESERVE 408,000 - - - 192,000 - 600,000
EQUIPMENT REPLACEMENT 300,000 - (14,900) - 14,900 - 300,000 UTILITY PLANT IN SERVICE 7,895,094 - (700,000) - - - 7,195,094 RATE STABILIZATION 200,000 - - - - - 200,000
TOTAL WASTEWATER FUND 11,444,287 4,515,960 (5,496,890) (1,005,080) 1,061,980 (1,061,980) 9,458,277 TOTAL ENTERPRISE FUNDS 26,205,486 10,368,250 (12,155,980) (2,987,949) 2,786,475 (2,156,435) 22,059,847 TOTAL - ALL FUNDS 55,168,603 52,156,535 (34,771,935) (28,298,989) 10,308,546 (10,308,546) 44,254,214
CLEANWATER FUND
WASTEWATER FUND
18 March 3, 2026 Item 12
ACTUAL ACTUAL ACTUAL % CURRENT MID-YEAR PROPOSED ACTUAL %
REVENUE REVENUE REVENUE RECV'D ADOPTED ENC & BUDGET AMENDED REVENUE RECV'D PROJECTED
FINAL FINAL MID-YEAR FINAL BUDGET APPROP REQUEST BUDGET MIDYEAR MIDYEAR REVENUE SOURCE OF FUNDS FY2023-24 FY2024-25 FY2024-25 FY2024-25 FY2025-26 FY2025-26 FY2025-26 FY2025-26 FY 2025-26 FY2025-26 FY2025-26
GENERAL FUND
TAXES
PROPERTY TAX 7,651,288 8,088,157 3,330,496 41.2% 8,394,000 - 61,000 8,455,000 3,590,756 42.5% 8,455,000 VLF IN LIEU OF PROPERTY TAX 807,116 858,932 - 0.0% 860,000 - 44,840 904,840 - 0.0% 904,840 SALES AND USE TAX 2,196,466 2,297,404 895,354 39.0% 2,300,000 - - 2,300,000 970,389 42.2% 2,300,000 TRANSIENT OCCUPANCY TAX 3,799,038 4,084,758 2,209,192 54.1% 4,160,000 - 175,000 4,335,000 2,409,836 55.6% 4,335,000 TRANSIENT OCCUPANCY TAX - STR - - - 0.0% 193,750 - (65,000) 128,750 - 0.0% 125,000 BUSINESS LICENSE TAX 362,769 360,364 203,298 56.4% 350,000 - - 350,000 211,473 60.4% 360,000 FRANCHISE TAX 446,816 422,411 77,866 18.4% 420,000 - - 420,000 70,890 16.9% 418,050 REAL PROPERTY TRANSFER TAX 178,484 171,806 70,777 41.2% 150,000 - - 150,000 73,734 49.2% 180,000 TOTAL 15,441,977 16,283,832 6,786,983 41.7% 16,827,750 - 215,840 17,043,590 7,327,078 43.0% 17,077,890 - -
LICENSES & PERMITS - -
LICENSES & PERMITS 4,615 3,485 750 16.3% 500 - - 500 - 0.0% 500 JUNIOR LIFEGUARD 92,770 90,310 1,615 1.7% 95,000 - - 95,000 1,021 1.1% 95,000 PARKING PERMITS 34,995 27,387 13,165 37.6% 30,000 - - 30,000 19,148 63.8% 37,000 TOTAL 132,380 121,181 15,530 11.7% 125,500 - - 125,500 20,169 16.1% 132,500 -
FINES & FORFEITURES -
MOVING VIOLATIONS/VEHICLE CODE FINES 69,284 66,761 31,893 47.8% 65,000 - - 65,000 27,835 42.8% 65,000 PARKING VIOLATIONS 1,395,851 1,538,560 569,311 37.0% 1,400,000 - 150,000 1,550,000 141,045 9.1% 1,550,000 PENALTIES 25,267 22,788 9,505 41.7% 9,000 - 21,000 30,000 22,558 75.2% 30,000 ADMINISTRATIVE CITATIONS 55,152 41,590 24,115 58.0% 45,000 - - 45,000 11,187 24.9% 25,000 RED LIGHT ENFORCEMENT 94,156 86,561 38,291 44.2% 80,000 - - 80,000 33,161 41.5% 75,000 TOTAL 1,639,711 1,756,260 673,115 38.3% 1,599,000 - 171,000 1,770,000 235,786 13.3% 1,745,000 -
REVENUE FROM USE OF ASSETS -
INV EARN-GENERAL 892,952 925,444 378,132 42.3% 400,000 - 390,000 790,000 349,382 44.2% 790,000 RENTAL INCOME 256,210 240,743 182,029 71.0% 235,000 - 37,000 272,000 187,768 69.0% 272,170 PARKING METER INCOME 1,433,473 1,734,993 892,896 51.5% 1,535,000 - 165,000 1,700,000 954,790 56.2% 1,700,000 SIDEWALK CAFÉ USER FEE 7,980 12,371 4,055 50.8% 4,000 - - 4,000 2,577 64.4% 3,000 TOTAL 2,612,031 2,892,135 1,457,112 50.4% 2,174,000 - 592,000 2,766,000 1,494,517 54.0% 2,765,170
REVENUE FROM OTHER AGENCIES
MOTOR VEHICLE LICENSE FEE 6,229 4,868 - 0.0% 4,000 - - 4,000 - 0.0% 6,000 PUBLIC SAFETY AUGMENTATION FUND 109,006 107,890 46,154 42.3% 100,000 - - 100,000 36,654 36.7% 105,000 HOMEOWNER EXEMPT 34,652 34,592 5,150 14.9% 30,000 - - 30,000 - 0.0% 34,600 STATE MANDATED COST REIMB - 128 - 0.0% - - - - - 0.0% - FEDERAL/STATE/LOCAL GRANTS 5,000 24,406 5,000 100.0% - - - - 5,000 100.0% 5,000 CORONAVIRUS RELIEF FUNDS - - - 0.0% 162,310 - - 162,310 - 0.0% 162,310 ON-TRACK PARIMUTUEL - - - 0.0% - - 24,340 24,340 24,344 100.0% 24,340 OFF-TRACK PARIMUTUEL 5,726 7,465 1,366 23.9% 5,000 - - 5,000 1,459 29.2% 6,000 SOLID WASTE 12,932 12,620 12,932 100.0% 12,900 - - 12,900 12,639 98.0% 12,640 TOTAL 173,545 191,969 70,602 40.7% 314,210 - 24,340 338,550 80,096 23.7% 355,890
CITY OF DEL MAR
FISCAL YEAR 2025-2026
MID-YEAR FINANCIAL REPORT
REVENUE SUMMARIES
Attachment A - Exhibit A2
19 March 3, 2026 Item 12
ACTUAL ACTUAL ACTUAL % CURRENT MID-YEAR PROPOSED ACTUAL %
REVENUE REVENUE REVENUE RECV'D ADOPTED ENC & BUDGET AMENDED REVENUE RECV'D PROJECTED
FINAL FINAL MID-YEAR FINAL BUDGET APPROP REQUEST BUDGET MIDYEAR MIDYEAR REVENUE SOURCE OF FUNDS FY2023-24 FY2024-25 FY2024-25 FY2024-25 FY2025-26 FY2025-26 FY2025-26 FY2025-26 FY 2025-26 FY2025-26 FY2025-26
CITY OF DEL MAR
FISCAL YEAR 2025-2026
MID-YEAR FINANCIAL REPORT
REVENUE SUMMARIES
CHARGES - PLANNING SERVICES
PLANNING SERVICES 552,483 502,183 314,907 57.0% 525,000 - (35,000) 490,000 244,239 49.8% 490,000 ENGINEERING SERVICES 124,232 171,259 77,847 62.7% 120,000 - - 120,000 61,260 51.1% 122,520 BUILDING SERVICES 474,017 612,862 292,629 61.7% 500,000 - (60,000) 440,000 221,322 50.3% 442,500 TOTAL 1,150,732 1,286,304 685,383 59.6% 1,145,000 - (95,000) 1,050,000 526,821 50.2% 1,055,020
OTHER REVENUE SOURCES
PARKING IN-LIEU FEE 10,372 13,764 2,669 25.7% 2,500 - - 2,500 4,122 164.9% 4,120 ADMINISTRATIVE CHARGE 965,790 937,650 482,898 50.0% 994,760 - - 994,760 497,380 50.0% 994,760 ADMINISTRATIVE CHARGE-MEASURE Q 152,731 90,528 - 0.0% 150,000 - - 150,000 - 0.0% 150,000 EXPENDITURE REIMBURSEMENT 53,613 148,006 30,766 57.4% 35,000 - - 35,000 18,119 51.8% 42,000 MISCELLANEOUS 683,836 73,594 81,274 11.9% 26,500 - 28,000 54,500 50,609 92.9% 55,410 TOTAL 1,866,342 1,263,541 597,607 32.0% 1,208,760 - 28,000 1,236,760 570,230 46.1% 1,246,290 TOTAL GENERAL FUND 24,255,226 22,556,715 10,286,332 42.4% 23,394,220 - 936,180 24,330,400 10,254,697 42.1% 24,377,760 MEASURE Q FUND 3,958,543 3,780,939 1,537,116 38.8% 15,627,380 - (6,950,000) 8,677,380 1,317,229 15.2% 8,680,000 ROAD MAINTENANCE REHAB ACCOUNT 114,392 107,381 39,257 34.3% 107,000 - - 107,000 46,271 43.2% 104,560 GAS TAX FUND 115,990 114,641 42,124 36.3% 119,560 - - 119,560 51,183 42.8% 119,280
OPEN SPACE FUND
TAXES 5,374 18,144 2,308 42.9% 6,000 - - 6,000 200 3.3% 5,300 LICENSE & PERMITS 423,758 403,365 195,030 46.0% 390,000 - - 390,000 182,767 46.9% 410,000 RENTAL INCOME 221,676 - 110,838 50.0% 227,200 - - 227,200 113,610 50.0% 227,200 FEDERAL/STATE/LOCAL GRANTS - 215,672 - 0.0% - 1,393,635 - 1,393,635 - 0.0% 1,393,635 ON-TRACK PARIMUTUEL - - - 0.0% - - 16,230 16,230 16,229 100.0% 16,230 OFF-TRACK PARIMUTUEL 3,817 4,976 911 23.9% 3,000 - - 3,000 972 32.4% 4,000 MISCELLANEOUS 6,302 42,952 3,445 54.7% 4,000 - - 4,000 3,183 79.6% 5,000 TOTAL OPEN SPACE FUND 660,927 685,109 312,532 47.3% 630,200 1,393,635 16,230 2,040,065 316,961 15.5% 2,061,365 SUPPLEMENTAL LAW FUND 199,879 192,923 126,665 63.4% 160,000 - 41,530 201,530 131,537 65.3% 201,530 REGIONAL COMMUNICATION 45,165 46,159 - 0.0% 46,000 - - 46,000 - 0.0% 46,000 GRANTS FUND 85,067 87,833 13,664 16.1% 62,400 - 12,600 75,000 46,363 61.8% 75,000 HOUSING FUND 222,137 42,364 191,109 86.0% - - - - - 0.0% - AB 939 179,710 251,345 51,140 28.5% 154,000 - - 154,000 75,000 48.7% 154,000 -
PEG FEE FUND 36,839 40,405 9,023 24.5% 37,200 - - 37,200 17,344 46.6% 37,200 20 March 3, 2026 Item 12
ACTUAL ACTUAL ACTUAL % CURRENT MID-YEAR PROPOSED ACTUAL %
REVENUE REVENUE REVENUE RECV'D ADOPTED ENC & BUDGET AMENDED REVENUE RECV'D PROJECTED
FINAL FINAL MID-YEAR FINAL BUDGET APPROP REQUEST BUDGET MIDYEAR MIDYEAR REVENUE SOURCE OF FUNDS FY2023-24 FY2024-25 FY2024-25 FY2024-25 FY2025-26 FY2025-26 FY2025-26 FY2025-26 FY 2025-26 FY2025-26 FY2025-26
CITY OF DEL MAR
FISCAL YEAR 2025-2026
MID-YEAR FINANCIAL REPORT
REVENUE SUMMARIES
CAPITAL IMPROVEMENT FUND
FEDERAL/STATE GRANTS 182,145 208,899 2,226 1.2% 1,170,000 1,309,220 63,230 2,542,450 63,230 2.5% 2,542,450 MISCELLANEOUS 214,538 202,872 137,543 100.0% 219,000 - (21,200) 197,800 - 100.0% 197,800 TOTAL CAPITAL IMPROVEMENT FUND 396,683 411,771 139,769 35.2% 1,389,000 1,309,220 42,030 2,740,250 63,230 2.3% 2,740,250 TRANSNET FUND 191,281 228,931 80 0.0% 131,000 518,000 - 649,000 - 0.0% 649,000 RTCIP FUND 1,525 4,977 873 100.0% - - - - - 0.0% -
SPECIAL PROJECTS FUND 177,814 - - 0.0% 1,545,000 703,900 - 2,248,900 87,403 0.0% 2,248,900 TOTAL GENERAL GOVERNMENTAL FUNDS 30,641,178 28,551,493 12,749,684 41.6% 43,402,960 3,924,755 (5,901,430) 41,426,285 12,407,218 30.0% 41,494,845 WORKERS' COMPENSATION FUND 395,606 349,499 192,817 48.7% 419,190 - (57,190) 362,000 180,272 49.8% 362,000
WATER UTILITY FUND
WATER SALES 2,760,874 2,365,627 1,515,410 54.9% 2,700,000 - 200,000 2,900,000 1,618,099 55.8% 2,900,000 READY TO SERVE CHARGE 2,021,281 1,954,206 949,921 47.0% 2,000,000 - - 2,000,000 1,029,252 51.5% 2,000,000 OTHER CONNECTION FEES 56,558 68,356 19,686 34.8% 30,000 - - 30,000 11,966 39.9% 30,000 MISCELLANEOUS 163,392 200,549 99,136 60.7% 65,000 - - 65,000 17,960 27.6% 65,000 TOTAL OPERATING REVENUE 5,002,105 4,588,738 2,584,153 51.7% 4,795,000 - 200,000 4,995,000 2,677,277 53.6% 4,995,000
CLEAN WATER PROGRAM
SERVICE CHARGE 617,884 657,722 304,405 49.3% 575,000 - - 575,000 302,009 52.5% 585,000 MISCELLANEOUS 7,869 10,973 2,423 30.8% 282,290 - - 282,290 1,369 0.5% 279,890 TOTAL CLEAN WATER PROGRAM 625,753 668,695 306,828 49.0% 857,290 - - 857,290 303,378 35.4% 864,890
WASTEWATER FUND
SERVICE CHARGES 2,178,563 1,954,106 1,009,510 46.3% 2,200,000 - 15,000 2,215,000 1,114,775 50.3% 2,215,000 USAGE CHARGES 2,026,033 1,950,126 1,028,892 50.8% 2,100,000 - 100,000 2,200,000 1,182,501 53.8% 2,200,000 OTHER SEWER FEES 83,766 83,766 19,331 23.1% 40,000 - (30,000) 10,000 3,222 32.2% 10,000 MISCELLANEOUS 172,209 188,378 90,154 52.4% 90,960 - - 90,960 8,397 9.2% 90,960 TOTAL WASTEWATER FUND 4,460,571 4,176,376 2,147,887 48.2% 4,430,960 - 85,000 4,515,960 2,308,895 51.1% 4,515,960 -
TOTAL ENTERPRISE FUNDS 10,088,429 9,433,809 5,038,868 49.9% 10,083,250 - 285,000 10,368,250 5,289,550 51.0% 10,375,850 TOTAL ALL FUNDS 41,125,213 38,334,801 17,981,369 43.7% 53,905,400 3,924,755 (5,673,620) 52,156,535 17,877,040 34.3% 52,232,695 21 March 3, 2026 Item 12
ACTUAL ACTUAL ACTUAL % CURRENT MID-YEAR PROPOSED ACTUAL %
EXP EXP EXP EXPENSED ADOPTED ENC & BUDGET AMENDED EXP EXP PROJECTED
FINAL FINAL MID-YEAR MID-YEAR BUDGET APPROP REQUEST BUDGET MIDYEAR MIDYEAR EXP DEPARTMENT FY 2023-24 FY 2024-25 FY 2024-25 FY 2024-25 FY 2025-26 FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25
GENERAL FUND
GENERAL GOVERNMENT
CITY COUNCIL 48,113 41,603 10,440 21.7% 78,970 - - 78,970 23,872 30.2% 66,770 LEGAL SERVICES 634,897 700,194 201,991 31.8% 550,000 - 50,000 600,000 248,595 41.4% 600,000 CITY MANAGER 1,002,306 878,774 418,517 41.8% 1,071,350 5,000 - 1,076,350 529,677 49.2% 1,081,840 HUMAN RESOURCES 283,609 258,453 145,932 51.5% 316,850 - - 316,850 139,876 44.1% 329,490 CITY CLERK 432,525 361,529 227,303 52.6% 370,080 - - 370,080 190,425 51.5% 375,690 INFORMATION SYSTEMS 471,783 548,153 349,802 74.1% 540,380 4,787 - 545,167 298,313 54.7% 538,940 FINANCE SERVICES 801,530 764,865 352,223 43.9% 1,015,980 - - 1,015,980 394,198 38.8% 1,028,010 RISK MANAGEMENT 804,507 368,636 401,001 49.8% 554,500 - (56,000) 498,500 472,356 94.8% 498,000 PLANNING SERVICES 1,744,868 1,508,816 956,054 54.8% 1,929,860 - 22,000 1,951,860 976,267 50.0% 1,951,130 CODE ENFORCEMENT 145,465 161,031 99,344 68.3% 141,990 - - 141,990 75,001 52.8% 145,600 BUILDING SERVICES 389,145 476,118 247,615 63.6% 403,500 - (48,000) 355,500 136,279 38.3% 354,000 TOTAL 6,758,748 6,068,172 3,410,222 50.5% 6,973,460 9,787 (32,000) 6,951,247 3,484,859 50.1% 6,969,470
PUBLIC SAFETY
LAW ENFORCEMENT 2,837,524 2,747,809 978,161 34.5% 3,072,560 - - 3,072,560 1,007,959 32.8% 3,068,850 LIFEGUARD SERVICES 1,664,222 1,516,815 866,376 52.1% 1,730,100 - - 1,730,100 937,835 54.2% 1,740,100 PARKING ENFORCEMENT 1,181,768 1,046,838 573,396 48.5% 1,213,570 - 24,000 1,237,570 568,465 45.9% 1,236,730 FIRE PROTECTION 2,970,463 2,741,927 1,481,517 49.9% 3,116,030 - 60,000 3,176,030 1,601,453 50.4% 3,166,000 HAZARDOUS WASTE MANAGEMENT 21,907 20,077 21,907 100.0% 23,850 - - 23,850 23,372 98.0% 24,420 SOLID WASTE 3,345 3,001 191 5.7% 5,000 - - 5,000 887 17.7% 3,000 EMERGENCY PREPAREDNESS 2,973 3,152 1,327 44.6% 5,750 - - 5,750 1,142 19.9% 5,750 TOTAL 8,682,202 8,079,619 3,922,875 45.2% 9,166,860 - 84,000 9,250,860 4,141,113 44.8% 9,244,850
PUBLIC WORKS
ENGINEERING SERVICES 170,231 284,858 73,229 43.0% 314,750 - - 314,750 71,556 22.7% 314,750 STORM DRAIN 221,939 199,913 147,414 66.4% 359,740 10,700 (90,000) 280,440 131,465 46.9% 277,050 FACILITIES 254,698 284,889 102,166 40.1% 577,010 47,168 - 624,178 240,446 38.5% 625,000 TOTAL 646,868 769,660 322,809 49.9% 1,251,500 57,868 (90,000) 1,219,368 443,467 36.4% 1,216,800
NON-DEPARTMENTAL
COMMUNITY SUPPORT 472,548 385,398 287,159 60.8% 482,600 - - 482,600 287,475 59.6% 479,700 TV STUDIO 120,488 89,375 16,373 13.6% 124,950 - - 124,950 19,261 15.4% 125,570 CITY MEMBERSHIPS 105,164 101,741 101,308 96.3% 112,310 - - 112,310 105,798 94.2% 109,750 CITY HALL - GENERAL 170,691 156,326 100,817 59.1% 188,050 - - 188,050 83,671 44.5% 193,310 TOTAL 868,891 732,840 505,657 58.2% 907,910 - - 907,910 496,205 54.7% 908,330
TOTAL GENERAL FUND BEFORE
EQUIPMENT REPLACEMENT 16,956,709 15,650,291 8,161,563 48.1% 18,299,730 67,655 (38,000) 18,329,385 8,565,644 46.7% 18,339,450 EQUIPMENT REPLACEMENT 118,909 270,159 60,953 51.3% 112,240 - 15,000 127,240 38,272 30.1% 112,240
TOTAL GENERAL FUND INCLUDING -
EQUIPMENT REPLACEMENT 17,075,618 15,920,450 8,222,516 48.2% 18,411,970 67,655 (23,000) 18,456,625 8,603,916 46.6% 18,451,690
CITY OF DEL MAR
FISCAL YEAR 2025-2026
MID-YEAR FINANCIAL REPORT
EXPENDITURE SUMMARIES
Attachment A - Exhibit A3
22 March 3, 2026 Item 12
ACTUAL ACTUAL ACTUAL % CURRENT MID-YEAR PROPOSED ACTUAL %
EXP EXP EXP EXPENSED ADOPTED ENC & BUDGET AMENDED EXP EXP PROJECTED
FINAL FINAL MID-YEAR MID-YEAR BUDGET APPROP REQUEST BUDGET MIDYEAR MIDYEAR EXP DEPARTMENT FY 2023-24 FY 2024-25 FY 2024-25 FY 2024-25 FY 2025-26 FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25
CITY OF DEL MAR
FISCAL YEAR 2025-2026
MID-YEAR FINANCIAL REPORT
EXPENDITURE SUMMARIES
MEASURE Q FUND 6,885,074 1,174,333 490,157 7.1% 12,892,215 1,352,130 - 14,244,345 852,553 6.0% 14,244,345 ROAD MAINTENANCE REHAB ACCOUNT - - - 0.0% - - - - - 0.0% -
GAS TAX FUND
STREET MAINTENANCE 277,835 269,233 151,983 54.7% 518,280 12,900 (35,000) 496,180 228,935 46.1% 495,270 STREET LIGHTS/SIGNS 152,887 174,857 52,538 34.4% 204,630 - - 204,630 65,906 32.2% 203,420 STREET LANDSCAPING 277,867 314,882 126,681 45.6% 308,450 - 16,550 325,000 87,614 27.0% 325,000 TOTAL GAX TAX FUND 708,589 758,972 331,202 46.7% 1,031,360 12,900 (18,450) 1,025,810 382,455 37.3% 1,023,690
OPEN SPACE FUND
POWERHOUSE OPERATIONS 481,065 426,569 199,801 41.5% 518,870 - (20,000) 498,870 248,380 49.8% 497,960 BEACH MAINTENANCE 380,586 334,473 152,942 40.2% 481,570 - 20,000 501,570 230,992 46.1% 498,880 PARK MAINTENANCE 451,888 434,342 195,166 43.2% 515,790 - 27,000 542,790 154,738 28.5% 542,480 TOTAL OPEN SPACE FUND 1,313,539 1,195,384 547,909 41.7% 1,516,230 - 27,000 1,543,230 634,110 41.1% 1,539,320 SUPPLEMENTAL LAW ENFORCEMENT - - - 0.0% - - - - 0.0% -
REGIONAL COMMUNICATION FUND 45,168 44,521 - 0.0% 61,250 - - 61,250 - 0.0% 61,250 GRANTS FUND 81,066 68,491 12,695 15.7% 61,500 - - 61,500 20,830 33.9% 61,500 HOUSING FUND 57,328 45,684 57,234 99.8% 61,660 - - 61,660 61,657 100.0% 61,660 AB 939 72,574 64,849 29,403 40.5% 95,480 12,330 - 107,810 21,142 19.6% 107,810 PEG FEE FUND 31,813 10,736 3,837 12.1% 11,900 - 63,540 75,440 5,166 6.8% 75,440 TOTAL GENERAL O&M FUNDS 26,270,769 19,283,420 9,694,953 36.9% 34,143,565 1,445,015 49,090 35,637,670 10,581,829 29.7% 35,626,705
CAPITAL IMPROVEMENT FUNDS
OPEN SPACE CIP 206,364 146,197 106,267 51.5% 50,000 1,705,995 - 1,755,995 8,121 0.5% 174,145 GENERAL FUND CIP 2,458,116 2,230,198 817,743 33.3% 4,707,750 2,452,040 (1,750,000) 5,409,790 305,291 5.6% 7,159,790 DEBT SERVICE-CITY HALL 901,391 902,860 689,595 76.5% 899,880 - - 899,880 695,276 77.3% 899,880 TRANSNET II CIP 191,159 228,756 - 0.0% 131,000 518,000 - 649,000 - 0.0% 649,000 RTCIP FUND - - - 0.0% 36,000 - - 36,000 - 0.0% 36,000
TOTAL CAPITAL IMPROVEMENT FUNDS 3,757,030 3,508,011 1,613,605 42.9% 5,824,630 4,676,035 (1,750,000) 8,750,665 1,008,688 11.5% 8,918,815 SPECIAL PROJECT FUND 191,058 430,060 102,043 53.4% 2,093,000 1,122,910 - 3,215,910 324,556 10.1% 3,215,910 TOTAL GENERAL GOVERNMENTAL FUNDS 30,218,857 23,221,491 11,410,601 37.8% 42,061,195 7,243,960 (1,700,910) 47,604,245 11,915,073 25.0% 47,761,430 23 March 3, 2026 Item 12
ACTUAL ACTUAL ACTUAL % CURRENT MID-YEAR PROPOSED ACTUAL %
EXP EXP EXP EXPENSED ADOPTED ENC & BUDGET AMENDED EXP EXP PROJECTED
FINAL FINAL MID-YEAR MID-YEAR BUDGET APPROP REQUEST BUDGET MIDYEAR MIDYEAR EXP DEPARTMENT FY 2023-24 FY 2024-25 FY 2024-25 FY 2024-25 FY 2025-26 FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25
CITY OF DEL MAR
FISCAL YEAR 2025-2026
MID-YEAR FINANCIAL REPORT
EXPENDITURE SUMMARIES
WORKERS' COMPENSATION FUND 289,382 261,612 237,279 82.0% 322,750 - - 322,750 236,257 73.2% 341,730
WATER FUND
GENERAL ADMINISTRATION 2,184,901 2,051,373 867,612 39.7% 2,550,360 18,000 295,000 2,863,360 732,079 25.6% 2,863,310 RISK MANAGEMENT 219,864 162,220 200,403 91.1% 266,750 - - 266,750 235,544 88.3% 242,000 RAW WATER SUPPLY 1,939,778 1,717,992 922,902 47.6% 1,997,150 - - 1,997,150 1,052,358 52.7% 2,100,000 TREATMENT/DELIVERY 355,734 374,796 150,427 42.3% 474,930 - - 474,930 172,025 36.2% 444,000 TOTAL WATER FUND O&M 4,700,277 4,306,381 2,141,344 45.6% 5,289,190 18,000 295,000 5,602,190 2,192,006 39.1% 5,649,310 WATER CAP IMPROVEMENT - - 16,665 100.0% 312,000 724,455 - 1,036,455 - 0.0% 1,036,455 TOTAL WATER FUND 4,700,277 4,306,381 2,158,009 45.9% 5,601,190 742,455 295,000 6,638,645 2,192,006 33.0% 6,685,765
CLEAN WATER FUND
PLANNING 92,943 78,255 46,496 50.0% 82,300 - - 82,300 43,833 53.3% 81,680 CODE ENFORCEMENT 34,562 39,025 25,625 74.1% 36,600 - - 36,600 20,232 55.3% 37,450 CLEAN WATER MANAGEMENT 273,178 307,573 103,177 37.8% 343,750 - - 343,750 152,163 44.3% 327,020 PUBLIC WORKS 310,951 287,993 159,493 51.3% 585,850 8,400 - 594,250 137,940 23.2% 559,200 TOTAL CLEAN WATER O & M 711,634 712,846 334,791 47.0% 1,048,500 8,400 - 1,056,900 354,168 33.5% 1,005,350 CLEAN WATER CAP IMPROVEMENT 44,227 - 10,746 24.3% 634,790 311,624 - 946,414 4,195 0.4% 946,414 TOTAL CLEAN WATER FUND 755,861 712,846 345,537 45.7% 1,683,290 320,024 - 2,003,314 358,363 17.9% 1,951,764
WASTEWATER FUND
RISK MANAGEMENT 219,864 162,220 200,403 91.1% 275,750 - (24,750) 251,000 235,544 93.8% 251,000 WASTEWATER TRANSPORTATION 181,634 57,498 59,404 32.7% 146,730 - - 146,730 74,605 50.8% 146,000 WASTEWATER TREATMENT 1,141,611 927,290 463,246 40.6% 1,254,790 - - 1,254,790 921,677 73.5% 1,255,000 DEBT SERVICE 562,673 563,446 545,735 97.0% 568,300 - - 568,300 547,069 96.3% 568,300 WASTEWATER PROGRAM 2,567,858 2,550,377 938,029 36.5% 3,161,070 10,000 105,000 3,276,070 758,531 23.2% 3,276,230 TOTAL WASTEWATER FUND O&M 4,673,640 4,260,831 2,206,817 47.2% 5,406,640 10,000 80,250 5,496,890 2,537,426 46.2% 5,496,530 WASTEWATER CAPITAL IMPROVEMENT - (501,927) 5,887 100.0% 250,000 755,080 - 1,005,080 16,090 1.6% 1,005,080 TOTAL WASTEWATER FUND 4,673,640 3,758,904 2,212,704 47.3% 5,656,640 765,080 80,250 6,501,970 2,553,516 39.3% 6,501,610 TOTAL ENTERPRISE FUNDS 10,129,778 8,778,131 4,716,250 46.6% 12,941,120 1,827,559 375,250 15,143,929 5,103,885 33.7% 15,139,139 TOTAL EXPENDITURES 40,638,017 32,261,234 16,364,130 40.3% 55,325,065 9,071,519 (1,325,660) 63,070,924 17,255,215 27.4% 63,242,299 24 March 3, 2026 Item 12
City of Del Mar
Cash Flow Report
General Fund
Fiscal Year 2025-26
Mid-Year
Adopted Proposed
FY 2026 FY 2026
(6/16/25) (2/18/26) Difference
(A) (B) (C=B-A)
Total Revenue 24,330,400 23,394,220 936,180
Total Expenditures 18,456,625 18,372,370 84,255
Transfers
RMRA Reimb (107,000) (328,777) (221,777)
Gas Tax 911,800 886,270 (25,530)
Open Space 886,030 921,838 35,808
SLESF (160,000) (201,941) (41,941)
Regional Comm 2,072 2,072 -
Clean Water (non-CIP) 416,000 299,151 (116,849)
PEG Fee Reimb (30,000) 29,973 59,973
Total Transfers 1,918,902 1,608,586 (310,316)
City Hall Debt 899,880 899,880 -
Cash Flow (before CIP & SP) 2,203,068 $ 3,365,309 $ 1,162,241 $ Transfer to CIP/Reserves
Open Space CIP 50,000 34,918 (15,082)
General Fund CIP 3,318,630 1,503,244 (1,815,386)
CIP Reserve Transfer - 850,000 850,000
Clean Water CIP 390,000 330,889 (59,111)
Total CIP 3,758,630 2,719,051 (1,039,579)
Transfer to Special Projects 513,158 298,000 215,158
Cash Flow (after CIP & SP) (1,853,562) $ 133,100 $ 1,986,662 $ Reserves
Contingency Reserves 4,341,582 5,324,903 983,321
Self-Insurance 300,000 377,216 77,216
Housing Reserve 1,900,000 2,325,000 425,000
Pension Reserves 5,200,000 5,842,684 642,684
Leave Liability 100,000 100,000 -
Equipment Replacement 545,102 669,092 123,990
14,638,895 12,386,684 2,252,211
Other Reserves
Capital Reserve 2,250,000 4,000,000 1,750,000
Attachment A - Exhibit A4
25 March 3, 2026 Item 12
City of Del Mar
Summary of Continuing Appropriations
Fiscal Year 2024-25
Project Name Department Account Number Amounts
General Fund CIP
Pavement Rehabilitation PW 40.7000.7009 752,842 $
CDM Bridge over San Dieguito PW 40.7000.7011 1,309,220 * Jimmy Durante Blvd Bluff Repairs PW 40.7000.7026 184,025 Hoska Ave Alley Assessment PW 40.7000.7047 45,137
San Dieguito Dr Development PW 40.7000.7048 816
Small Area Pavement Repairs PW 40.7000.7056 60,000
Citywide Bridge Repairs PW 40.7000.7057 100,000
Total Fund 2,452,040 $
Open Space CIP
Powerhouse Trellis PW 21.7000.7005 4,360 $
Riverpath Del Mar PW 21.7000.7007 1,393,635 *
29th St Seawall & Beach Access PW 21.7000.7008 162,000
Major Arterial Median Improvements PW 21.7000.7027 115,000 Powerhouse Repairs & Improvements PW 21.7000.7055 31,000 Total Fund 1,705,995 $
TransNet CIP
Pavement Rehabilitation PW 44.7000.7009 518,000 $ *
Total Fund 518,000 $
Clean Water Fund
Oceanview Drainage/Penny Lane PW 55.7000.7032 45,086
Storm Drain Improvements PW 55.7000.7045 266,538
$ 311,624
Special Projects
Housing Element - 6th Cycle PL 49.8000.8004 43,391 $
SCOUP Sand Replenishment PL 49.8000.8008 30,218
Fairgrounds Affordable Housing PL 49.8000.8013 685,276 * General Plan Updates PL 49.8000.8018 48,500
Affordable Housing Incentives PL 49.8000.8020 81,000
Affordable Housing City-owned PL 49.8000.8023 10,000
ADU Facilitation Measures PL 49.8000.8026 37,724
Fair Housing Amendments PL 49.8000.8027 5,000 *
6th Cycle Zoning Programs PL 49.8000.8028 17,127
TSVS Updates PL 49.8000.8030 25,000
Public Tree Policy Update PL 49.8000.8031 52,000
Shoreline/Living Levee PL 49.8000.8032 13,624 *
Implement Solar Access App PL 49.8000.8033 5,000
Civic Center Outdoor Lighting CM 49.8000.8034 20,000
ERP System Implementation FI 49.8000.8036 49,050
Total Fund 1,122,910 $
CAPITAL PROJECTS
SPECIAL PROJECTS
Attachment B1
26 March 3, 2026 Item 12
City of Del Mar
Summary of Continuing Appropriations
Fiscal Year 2024-25
Project Name Department Account Number Amounts
Measure Q Fund
Undergrounding Project - General PW 02.7000.7001 67,001 $ Pavement Rehabilitation PW 02.7000.7009 91,000
Utility Specialist (PO58-00795) PW 02.7000.7202 230,990 UUD 1A-Stratford Ct South PW 02.7000.7202 690,854
Utility Specialist (PO58-00730) PW 02.7000.7204 272,285 Total Fund 1,352,130 $
Water Fund
Infrastructure Improvements PW 51.7000.7017 395,670
Valve Replacements PW 51.7000.7037 88,785
Citywide Pressure Upgrades PW 51.7000.7054 240,000
$ 724,455
Wastewater Fund
Infrastructure Improvements PW 57.7000.7024 755,080
` 755,080 $
Total Continuing Appropriations 8,942,234 $
* Offset with Federal, State, or Local grants in the amount of $3,924,755.
MEASURE Q CAPITAL PROJECTS
ENTERPRISE FUNDS CAPITAL PROJECTS
27 March 3, 2026 Item 12
City of Del Mar
Summary of Encumbrances
Fiscal Year 2024-25
Project Name Department Account Number Amounts
General Fund
Carahsoft Tech (PO52-00116) IT 01.5320.3200 4,787 $
Colin Leibold (PO54-00054) CM 01.5200.3200 5,000
Major Facility Repairs PW 01.5854.3200 47,168
Portillo Concrete (PO58-00860) PW 01.5841.3200 10,700
Total Fund 67,655 $
AB939 Reimbursement Fund
Solana Center for Env (PO52-00107) CM 26.5225.3200 12,330 $ Total Fund 12,330 $
Gas Tax Fund
Portillo Concrete (PO58-00860) PW 20.5845.3200 8,400 $
Portillo Concrete (PO58-00860) PW 20.5845.2300 4,500
$ 12,900
Water Fund
Portillo Concrete (PO58-00860) PW 51.5840.3200 18,000 $ $ 18,000
Clean Water Fund
Portillo Concrete (PO58-00860) PW 55.5840.3200 8,400 $
$ 8,400
Wastewater Fund
Portillo Concrete (PO58-00860) PW 57.5840.3200 10,000 $ ` 10,000 $
Total Encumbrances 129,285 $
Attachment B2
28 March 3, 2026 Item 12
Honorable Mayor and Members of City Council
City of Del Mar, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Del Mar (the “City”) as of and for the year ended June 30, 2025, and have issued our report thereon dated January 26, 2026. Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated August 5, 2025, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence under the American Institute of Certified Public Accountants (“AICPA”) independence standards, contained in the Code of Professional Conduct.
We identified self-review threats to independence as a result of non-attest services provided.
Those non-attest services included the preparation of the financial statements and recording journal entries detected during the audit process.
Attachment C
29 March 3, 2026 Item 12
To mitigate the risk, management has compared the draft financial statements and footnotes to the underlying accounting records to verify accuracy and has reviewed a disclosure checklist to ensure footnotes are complete and accurate.
Additionally, we utilize a quality control reviewer to perform a second review of journal entries and the financial statements. We believe these safeguards are sufficient to reduce the independence threats to an acceptable level.
Significant Risks Identified
We have identified the following significant risks:
Implementation of the new Compensated Absences accounting standard, Governmental Accounting Standards Board (GASB) Statement No. 101. As a result, we received the City’s records of compensated absences, tested the calculations of the records, and ensured the City’s footnote disclosures are accurate and complete in accordance with the new standard.
Compliance with Federal Grant Requirements. We performed a Single Audit over major programs to test for compliance with federal grant requirements.
Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. There have been no initial selection of accounting policies. The City changed the accounting policies related to compensated absences by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 101, Compensated Absences, and risk disclosures related to government vulnerabilities due to concentrations and constraints by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 102, Certain Risk Disclosures, in the fiscal year ended June 30, 2025. Accordingly, the cumulative effect of the accounting changes related to GASB 101 as of the beginning of the year have been reported in the Statement of Activities. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
The most sensitive accounting estimates affecting the financial statements are:
Management’s estimate of the transactions related to net pension liabilities based on actuarial information. We evaluated the key factors and assumptions used to develop the amounts used by the actuaries and determined that they are reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.
30 March 3, 2026 Item 12
Management’s estimate of revenue and expense accruals related to federal grant programs. We evaluated the key factors and assumptions used to develop the amounts recorded as accruals and determined that they are reasonable in relation to the financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements were:
The disclosure of pension obligations in note 9 of the financial statements.
The financial statement disclosures are neutral, consistent, and clear.
Significant Unusual Transactions
For purposes of this communication, professional standards require us to communicate to you significant unusual transactions identified during our audit. There were no unusual transactions noted as a result of our audit procedures.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards also require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all misstatements.
In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole or applicable opinion units.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to City’s’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management in the letter dated January 26, 2026.
31 March 3, 2026 Item 12
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as City’s auditors.
Other Information Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City’s annual report, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards, we have read the information and considered whether such information, or the manner of its presentation, was materially inconsistent with its presentation in the financial statements.
Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.
This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.
Irvine, California
January 26, 2026
32 March 3, 2026 Item 12
INDEPENDENT ACCOUNTANT’S REPORT
The Honorable Mayor and City Council
City of Del Mar, California
We have performed the procedures enumerated below on the City of Del Mar, California (City) appropriations limit worksheets for compliance with the requirements of Section 1.5 of Article XIIIB of the California Constitution for the year ended June 30, 2021. The City is responsible for compliance with Section 1.5 of Article XIIIB of the California Constitution.
The City has agreed to and acknowledged that these procedures are appropriate to meet the intended purpose of evaluating compliance with the requirements of Section 1.5 of Article XIIIB of the California Constitution and the League of California Cities publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines for the year ended June 30, 2021.
This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and the associated findings are as follows:
1. We obtained the worksheets referred to above and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote.
Results: No exceptions were noted as a result of our procedures.
2. We recalculated the mathematical computations reflected in the City’s worksheets.
Results: No exceptions were noted as a result of our procedures.
3. We compared the current year information used to determine the current year limit and agreed it to worksheets prepared by the City and to information provided by the State Department of Finance.
Results: No exceptions were noted as a result of our procedures.
4. We compared the amount of the prior year appropriations limit presented in the worksheets to the amount adopted by the City Council for the prior year.
Results: No exceptions were noted as a result of our procedures.
Attachment D
33 March 3, 2026 Item 12
The Honorable Mayor and City Council
City of Del Mar, California
Page Two
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively on the worksheets referred to above. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriation limit for the base year, as defined by the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the Management of the City of Del Mar, California and is not intended to be, and should not be, used by anyone other than the specified party.
Irvine, California
January 26, 2026
34 March 3, 2026 Item 12
BEGINNING ENDING
BALANCE O & M CIP BALANCE
JUL 1, 2024 REVENUES EXPENDITURES EXPENDITURES IN (OUT) JUN 30, 2025 ACTUAL FY 2025 FY 2025 FY 2025 FY 2025 FY 2025 ACTUAL
CONTINGENCY 34.80% 6,849,772 23,607,037 (16,498,892) - 1,217,230 $ (8,671,240) 6,503,908 RESTRICTED:
SELF-INSURANCE 415,632 353,910 (359,326) - - - 410,216
DESIGNATED:
ENCUMBRANCES - - - - 67,655 - 67,655
COASTAL PARKING REVENUE - 81,900 (81,900) - - - -
SIDEWALK CAFÉ - 5,300 (5,300) - - - -
HOUSING RESERVE 1,600,000 - - - 300,000 (250,000) 1,650,000 PENSION RESERVE 4,421,894 207,080 (11,290) - 360,000 - 4,977,684 LEAVE LIABILITY 100,000 - - - - - 100,000
EQUIPMENT REPLACEMENT 815,241 - (118,909) - 100,000 - 796,332 TOTAL GENERAL FUND 14,202,539 24,255,227 (17,075,617) - 2,044,885 (8,921,240) 14,505,794 3,958,543 9,957,775 - (6,466,344) - - 7,449,974
ENCUMBRANCES 418,730 - - (418,730) - - -
TOTAL MEASURE Q FUND 10,376,505 3,958,543 - (6,885,074) - - 7,449,974 114,392 107,385 - - - - 221,777
115,990 - (708,589) - 612,579 - 19,980
660,927 - (1,313,539) - 652,612 - -
DESIGNATED
ENCUMBRANCES 241,725 - - (206,364) 267,043 - 302,404
CAPITAL IMPROVEMENT PROJECTS - - - - - - -
OPEN SPACE ACQUISITION 86,388 - - - - - 86,388
TREE RESERVE 41,017 - - - - - 41,017
TOTAL OPEN SPACE FUND 369,130 660,927 (1,313,539) (206,364) 919,655 - 429,809 199,879 - - - - (199,467) 411
45,165 15,531 (45,168) - - - 15,529
85,067 155,774 (81,066) - - - 159,775
GENERAL FUND
MEASURE Q
ROAD MAINTENANCE REHABILITATION ACCT
GAS TAX FUND
OPEN SPACE FUND
SUPPLEMENTAL LAW ENFORCEMENT FUND
REGIONAL COMMUNICATIONS FUND
GRANTS FUND
CITY OF DEL MAR
RESERVE SUMMARY
FISCAL YEAR 2024-2025
TRANSFERS
FINAL FINANCIAL REPORT
Attachment E1
35 March 3, 2026 Item 12
BEGINNING ENDING
BALANCE O & M CIP BALANCE
JUL 1, 2024 REVENUES EXPENDITURES EXPENDITURES IN (OUT) JUN 30, 2025 ACTUAL FY 2025 FY 2025 FY 2025 FY 2025 FY 2025 ACTUAL
CITY OF DEL MAR
RESERVE SUMMARY
FISCAL YEAR 2024-2025
TRANSFERS
FINAL FINANCIAL REPORT
222,137 48,745 (57,328) - - (55,550) 158,004
179,710 572,060 (72,574) - - - 679,196
36,839 13,241 (31,813) - - (10,000) 8,267
396,683 47,793 - (1,582,556) 1,138,080 - -
ENCUMBRANCES 875,560 - - (875,560) 1,166,296 1,166,296
RESERVE FOR CAPITAL 650,000 - - - 2,500,000 3,150,000
DEBT SERVICE - - (901,391) - 901,391 - -
TOTAL CAPITAL IMPROVEMENT FUND 1,573,353 396,683 (901,391) (2,458,116) 5,705,767 - 4,316,296 177,814 798,574 - (191,058) - (331,478) 453,852
191,281 3,365 (191,159) - - - 3,487
1,525 36,605 - - - - 38,130
395,606 396,611 (289,382) - - - 502,835
NET POSITION 1,836,306 5,002,105 (4,789,493) - 121,498 (370,735) 1,799,681 RESTRICTED:
CONTRIBUTED CAPITAL 4,028,272 - - - - - 4,028,272
DESIGNATED
ENCUMBRANCES 121,498 - - - (121,498) -
SELF-INSURANCE 50,000 - - - - - 50,000
RATE STABILIZATION 200,000 - - - - - 200,000
CAPTIAL REPLACEMENT 470,000 - - - - - 470,000
NET PENSION LIABILITY (1,976,172) - 14,053 - - - (1,962,119) PENSION RESERVE 1,000,000 - - - - - 1,000,000
OPERATING RESERVE 500,000 - - - - - 500,000
EQUIPMENT REPLACEMENT 200,000 - - - - - 200,000
UTILITY PLANT IN SERVICE 7,347,968 - 75,162 - - - 7,423,130 TOTAL WATER FUND 13,777,872 5,002,105 (4,700,278) - 121,498 (492,233) 13,708,964
CAPITAL IMPROVEMENT FUND
SPECIAL PROJECT FUND
TRANSNET FUND
RTCIP
WORKERS' COMPENSATION FUND
WATER FUND
PEG FEE FUND
HOUSING FUND
AB 939 FUND
36 March 3, 2026 Item 12
BEGINNING ENDING
BALANCE O & M CIP BALANCE
JUL 1, 2024 REVENUES EXPENDITURES EXPENDITURES IN (OUT) JUN 30, 2025 ACTUAL FY 2025 FY 2025 FY 2025 FY 2025 FY 2025 ACTUAL
CITY OF DEL MAR
RESERVE SUMMARY
FISCAL YEAR 2024-2025
TRANSFERS
FINAL FINANCIAL REPORT
NET POSITION 63,698 625,753 (711,634) - 392,919 - 370,735
DESIGNATED
UTILITY PLANT IN SERVICE 446,876 - 89,375 - 536,251
ENCUMBRANCES 66,186 - (133,602) 583,400 (370,735) 145,249
CAPITAL REPLACEMENT RESERVE - - - -
TOTAL CLEAN WATER FUND 576,760 625,753 (711,634) (44,227) 976,319 (370,735) 1,052,235 NET POSITION 713,858 4,460,570 (3,608,697) - 374,960 - 1,940,691 -
RESTRICTED
IBANK RESERVE 228,828 - - - - - 228,828
CONTRIBUTED CAPITAL 650,814 - - - - - 650,814
LOAN RESERVE-STATE REVOLVING - 332,979 - - - - 332,979
DESIGNATED
ENCUMBRANCES 374,960 - - - - (374,960) -
SELF-INSURANCE 50,000 - - - - - 50,000
CAPITAL REPLACEMENT 500,000 - - - - - 500,000
NET PENSION LIABILITY (1,986,628) - 24,509 - - - (1,962,119) PENSION RESERVE 900,000 - - - - 900,000
OPERATING RESERVE 408,000 - - - - - 408,000
EQUIPMENT REPLACEMENT 300,000 - - - - - 300,000
UTILITY PLANT IN SERVICE 8,548,709 - (653,615) - - 7,895,094 RATE STABILIZATION 200,000 - - - - - 200,000
TOTAL WASTEWATER FUND 11,221,520 4,460,570 (4,237,803) - 374,960 (374,960) 11,444,288 TOTAL ENTERPRISE FUNDS 25,576,152 10,088,429 (9,649,715) (44,227) 1,472,777 (1,237,928) 26,205,487 TOTAL - ALL FUNDS 54,245,570 41,125,212 (30,417,340) (9,784,840) 10,755,663 (10,755,663) 55,168,603
CLEANWATER FUND
WASTEWATER FUND
37 March 3, 2026 Item 12
ACTUAL ACTUAL ADOPTED MID-YEAR ACTUAL %
REVENUE REVENUE BUDGET AMENDED REVENUE RECV'D PROJECTED FINAL FINAL (6/17/24) BUDGET FINAL FY REVENUE
SOURCE OF FUNDS FY 2022-23 FY 2023-24 FY 2024-25 FY 2024-25 FY 2024-25 2024-25 FY 2024-25
GENERAL FUND
TAXES
PROPERTY TAX 7,241,627 7,651,288 8,032,500 8,032,500 8,088,157 100.7% 8,070,000 VLF IN LIEU OF PROPERTY TAX 759,841 807,116 821,800 821,800 858,932 104.5% 830,000 SALES AND USE TAX 2,306,262 2,196,466 2,300,000 2,300,000 2,297,404 99.9% 2,200,000 TRANSIENT OCCUPANCY TAX 3,816,392 3,799,038 3,820,000 4,000,000 4,084,758 102.1% 4,000,000 BUSINESS LICENSE TAX 276,466 362,769 430,000 350,000 360,364 103.0% 330,000 FRANCHISE TAX 442,409 446,816 350,000 430,000 422,411 98.2% 430,000 REAL PROPERTY TRANSFER TAX 134,893 178,484 140,000 140,000 171,806 122.7% 145,000 TOTAL 14,977,890 15,441,977 15,894,300 16,074,300 16,283,832 101.3% 16,005,000
LICENSES & PERMITS
LICENSES & PERMITS 3,485 2,335 500 500 4,615 923.0% 750 JUNIOR LIFEGUARD 90,310 96,990 95,000 95,000 92,770 97.7% 95,000 PARKING PERMITS 27,387 30,060 25,000 25,000 34,995 140.0% 30,000 TOTAL 121,182 129,385 120,500 120,500 132,380 109.9% 125,750
FINES & FORFEITURES
MOVING VIOLATIONS/VEHICLE CODE FINES 58,170 69,284 55,000 55,000 66,761 121.4% 65,000 PARKING VIOLATIONS 1,368,108 1,395,851 1,250,000 1,350,000 1,538,560 114.0% 1,450,000 PENALTIES 5,712 25,267 12,000 12,000 22,788 189.9% 12,000 ADMINISTRATIVE CITATIONS 88,167 55,152 45,000 45,000 41,590 92.4% 45,000 RED LIGHT ENFORCEMENT 73,937 94,156 65,000 65,000 86,561 133.2% 80,000 TOTAL 1,594,094 1,639,710 1,427,000 1,527,000 1,756,261 115.0% 1,652,000
REVENUE FROM USE OF ASSETS
INTEREST EARNINGS 925,444 199,381 400,000 400,000 892,952 223.2% 400,000 RENTAL INCOME 240,743 230,372 200,000 200,000 256,210 128.1% 240,000 LEASE INCOME/LOSS - - - - 174,205 100.0% -
PARKING METER INCOME 1,268,930 1,433,473 1,400,000 1,700,000 1,734,993 102.1% 1,650,000 SIDEWALK CAFÉ USER FEE 12,371 1,469 3,000 3,000 7,980 266.0% 3,000 TOTAL 1,700,152 2,612,031 2,003,000 2,303,000 3,066,340 133.1% 2,293,000
REVENUE FROM OTHER AGENCIES
MOTOR VEHICLE LICENSE FEE 4,868 4,040 4,000 4,000 6,229 155.7% 4,800 PUBLIC SAFETY AUGMENTATION FUND 107,890 107,147 100,000 100,000 109,006 109.0% 100,000 HOMEOWNER EXEMPT 34,592 35,835 35,000 35,000 34,652 99.0% 30,000 STATE MANDATED COST REIMB 128 - 1,500 1,500 - 0.0% 1,500 FEDERAL/STATE/LOCAL GRANTS 24,406 5,000 162,200 162,200 5,000 3.1% 162,200 CORONAVIRUS RELIEF FUNDS - 870,883 162,310 162,310 - 0.0% 162,310 OFF-TRACK PARIMUTUEL 7,465 9,009 8,000 8,000 5,726 71.6% 6,500 SOLID WASTE 12,620 10,996 11,000 11,000 12,932 117.6% 12,900 TOTAL 191,969 1,042,910 484,010 484,010 173,546 35.9% 480,210
CHARGES - PLANNING SERVICES
PLANNING SERVICES 502,183 625,509 520,000 520,000 552,483 106.2% 525,000 ENGINEERING SERVICES 171,259 181,888 200,000 200,000 124,232 62.1% 160,000 BUILDING SERVICES 612,862 606,602 500,000 500,000 474,017 94.8% 540,000 TOTAL 1,286,304 1,413,999 1,220,000 1,220,000 1,150,732 94.3% 1,225,000
CITY OF DEL MAR
FISCAL YEAR 2024-2025
FINAL FINANCIAL REPORT
REVENUE SUMMARIES
Attachment E2
38 March 3, 2026 Item 12
ACTUAL ACTUAL ADOPTED MID-YEAR ACTUAL %
REVENUE REVENUE BUDGET AMENDED REVENUE RECV'D PROJECTED FINAL FINAL (6/17/24) BUDGET FINAL FY REVENUE
SOURCE OF FUNDS FY 2022-23 FY 2023-24 FY 2024-25 FY 2024-25 FY 2024-25 2024-25 FY 2024-25
CITY OF DEL MAR
FISCAL YEAR 2024-2025
FINAL FINANCIAL REPORT
REVENUE SUMMARIES
OTHER REVENUE SOURCES
PARKING IN-LIEU FEE 13,764 - 1,500 1,500 10,372 691.5% 2,700 SALE OF PROPERTY - - - - - 0.0% -
ADMINISTRATIVE CHARGE 937,650 910,344 990,000 990,000 965,790 97.6% 990,000 CONTRIBUTIONS - 3,660 - - 48,384 0.0% -
ADMINISTRATIVE CHARGE-MEASURE Q 90,528 59,875 150,000 150,000 152,731 101.8% 150,000 WC/STD REIMBURSEMENTS - 22,665 - - 11,888 100.0% -
INSURANCE CLAIM REIMBURSEMENT - 3,807 - - 353,910 0.0% - EXPENDITURE REIMBURSEMENT 148,006 3,811 5,000 35,000 53,613 153.2% 35,000 MISCELLANEOUS 73,594 137,182 25,000 100,620 95,449 94.9% 100,620 TOTAL 1,263,542 1,141,344 1,171,500 1,277,120 1,692,137 132.5% 1,278,320 TOTAL GENERAL FUND 22,556,715 21,999,774 22,320,310 23,005,930 24,255,227 105.4% 23,059,280 MEASURE Q FUND 3,780,939 3,401,946 3,500,000 3,500,000 3,958,543 113.1% 3,490,000 ROAD MAINTENANCE REHAB ACCOUNT 107,381 90,384 100,860 100,860 114,392 113.4% 99,760 GAS TAX FUND 114,641 105,890 114,770 114,770 115,990 101.1% 117,400
OPEN SPACE FUND
TAXES 18,144 34,115 12,000 12,000 5,374 44.8% 8,000
LICENSE & PERMITS 403,365 390,339 440,000 440,000 423,758 96.3% 435,000 RENTAL INCOME 221,670 - 221,676 235,000
FEDERAL/STATE GRANTS 215,672 - - 680,000 - 0.0% -
OFF-TRACK PARIMUTUEL 4,976 4,334 5,000 5,000 3,817 76.3% 4,000 CONTRIBUTIONS 34,000 102,856 137,000 941,673 - 0.0% 1,621,673 MISCELLANEOUS 8,952 8,021 264,530 42,860 6,302 14.7% 42,860 TOTAL OPEN SPACE FUND 685,109 539,665 858,530 2,343,203 660,927 28.2% 2,346,533 SUPPLEMENTAL LAW FUND 192,923 166,847 160,000 194,000 199,879 103.0% 194,000 REGIONAL COMMUNICATION 46,159 43,990 45,000 45,000 45,165 100.4% 46,000 GRANTS FUND 87,833 71,515 60,000 66,352 85,067 128.2% 70,000 HOUSING FUND 42,364 2,546 30,000 162,850 222,137 136.4% 162,850 AB 939 251,345 159,145 154,000 154,000 179,710 116.7% 154,000 PEG FEE FUND 40,405 43,647 46,000 46,000 36,839 80.1% 40,000
CAPITAL IMPROVEMENT FUND
FEDERAL/STATE/LOCAL GRANTS 208,899 684,949 1,411,950 2,835,764 396,683 14.0% 2,672,450 MISCELLANEOUS 202,872 63,564 - - - 0.0% -
TOTAL CAPITAL IMPROVEMENT FUND 411,771 748,513 1,411,950 2,835,764 396,683 14.0% 2,672,450 TRANSNET FUND 228,931 133,698 147,000 578,000 191,281 33.1% 578,000 RTCIP FUND 4,977 23,784 - - 1,525 100.0% 400
SPECIAL PROJECTS FUND - 225,000 - - 177,814 0.0% -
TOTAL GENERAL GOVERNMENTAL FUNDS 28,551,493 27,756,344 28,948,420 33,146,729 30,641,178 92.4% 33,030,673 WORKERS' COMPENSATION FUND 349,499 290,088 290,000 290,000 395,606 136.4% 290,000 39 March 3, 2026 Item 12
ACTUAL ACTUAL ADOPTED MID-YEAR ACTUAL %
REVENUE REVENUE BUDGET AMENDED REVENUE RECV'D PROJECTED FINAL FINAL (6/17/24) BUDGET FINAL FY REVENUE
SOURCE OF FUNDS FY 2022-23 FY 2023-24 FY 2024-25 FY 2024-25 FY 2024-25 2024-25 FY 2024-25
CITY OF DEL MAR
FISCAL YEAR 2024-2025
FINAL FINANCIAL REPORT
REVENUE SUMMARIES
WATER UTILITY FUND
WATER SALES 2,365,627 2,250,941 2,375,000 2,575,000 2,760,874 107.2% 2,600,000 READY TO SERVE CHARGE 1,954,206 1,860,332 1,950,000 1,950,000 2,021,281 103.7% 1,960,000 OTHER CONNECTION FEES 68,356 57,667 54,000 54,000 56,558 104.7% 35,000 MISCELLANEOUS 200,549 101,824 90,000 90,000 163,392 181.5% 74,000 TOTAL OPERATING REVENUE 4,588,738 4,270,764 4,469,000 4,669,000 5,002,105 107.1% 4,669,000
CLEAN WATER PROGRAM
SERVICE CHARGE 657,722 623,696 630,000 630,000 617,884 98.1% 595,000 MISCELLANEOUS 10,973 5,266 5,000 5,000 7,869 157.4% 41,200 TOTAL CLEAN WATER PROGRAM 668,695 628,962 635,000 635,000 625,753 98.5% 636,200
WASTEWATER FUND
SERVICE CHARGES 1,954,106 1,860,666 1,940,000 2,000,000 2,178,563 108.9% 2,000,000 USAGE CHARGES 1,950,126 1,923,924 2,000,000 2,000,000 2,026,033 101.3% 2,000,000 OTHER SEWER FEES 83,766 67,657 75,000 75,000 83,766 111.7% 47,700 MISCELLANEOUS 188,378 56,127 77,000 77,000 172,208 223.6% 48,000 TOTAL WASTEWATER FUND 4,176,376 3,908,374 4,092,000 4,152,000 4,460,570 107.4% 4,095,700 TOTAL ENTERPRISE FUNDS 8,808,100 9,433,809 9,196,000 9,456,000 10,088,429 106.7% 9,400,900 TOTAL ALL FUNDS 36,854,533 38,334,801 38,434,420 42,892,729 41,125,212 95.9% 42,721,573 40 March 3, 2026 Item 12
ACTUAL ACTUAL ADOPTED FINAL ACTUAL %
EXP EXP BUDGET AMENDED EXP EXPENSED PROJECTED
FINAL FINAL (6/17/24) BUDGET FINAL EXP
DEPARTMENT FY 2022-23 FY 2023-24 FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25
GENERAL FUND
GENERAL GOVERNMENT
CITY COUNCIL 41,603 23,400 35,280 35,280 48,113 136.4% 39,870 LEGAL SERVICES 700,194 625,181 506,000 606,000 634,897 104.8% 600,000 CITY MANAGER 878,774 714,344 922,090 922,090 1,002,306 108.7% 920,095 HUMAN RESOURCES 258,453 226,829 249,590 249,590 283,609 113.6% 274,860 CITY CLERK 361,529 337,212 364,740 364,740 432,525 118.6% 448,500 INFORMATION SYSTEMS 548,153 504,087 544,960 544,960 471,783 86.6% 561,200 FINANCE SERVICES 764,865 736,709 809,760 810,410 801,530 98.9% 814,690 RISK MANAGEMENT 368,636 280,408 481,350 481,350 804,507 167.1% 428,000 PLANNING SERVICES 1,508,816 1,196,048 1,876,690 1,877,340 1,744,868 92.9% 1,830,700 CODE ENFORCEMENT 161,031 148,242 149,550 149,550 145,465 97.3% 170,390 BUILDING SERVICES 476,118 485,477 403,500 403,500 389,145 96.4% 403,500 TOTAL 6,068,172 5,277,937 6,343,510 6,444,810 6,758,747 104.9% 6,491,805
PUBLIC SAFETY
LAW ENFORCEMENT 2,747,809 2,687,591 2,962,340 2,962,340 2,837,524 95.8% 2,848,940 LIFEGUARD SERVICES 1,516,815 1,393,458 1,547,960 1,573,957 1,664,222 105.7% 1,626,080 PARKING ENFORCEMENT 1,046,838 1,084,591 1,189,520 1,189,520 1,181,768 99.3% 1,221,730 FIRE PROTECTION 2,741,927 2,442,988 2,894,330 3,032,062 2,970,463 98.0% 3,024,020 HAZARDOUS WASTE MANAGEMENT 20,077 17,632 22,960 22,960 21,907 95.4% 22,910 SOLID WASTE 3,001 3,508 5,000 5,000 3,345 66.9% 4,000
EMERGENCY PREPAREDNESS 3,152 2,884 5,750 5,750 2,973 51.7% 5,580 TOTAL 8,079,619 7,632,652 8,627,860 8,791,589 8,682,202 98.8% 8,753,260
PUBLIC WORKS
ENGINEERING SERVICES 284,858 137,256 263,750 263,750 170,231 64.5% 250,000 STORM DRAIN 199,913 154,487 205,750 206,125 221,939 107.7% 249,300 FACILITIES 284,889 237,242 359,280 359,738 254,698 70.8% 328,090 TOTAL 769,660 528,985 828,780 829,613 646,868 78.0% 827,390
NON-DEPARTMENTAL
COMMUNITY SUPPORT 385,398 415,129 427,510 427,510 472,548 110.5% 442,200 TV STUDIO 89,375 97,575 119,420 119,420 120,488 100.9% 124,200 CITY MEMBERSHIPS 101,741 93,740 109,890 109,890 105,164 95.7% 105,170 CITY HALL - GENERAL 156,326 157,091 185,750 185,750 170,691 91.9% 185,000 TOTAL 732,840 763,535 842,570 842,570 868,891 103.1% 856,570
TOTAL GENERAL FUND BEFORE
EQUIPMENT REPLACEMENT 15,650,291 14,203,109 16,642,720 16,908,582 16,956,708 100.3% 16,929,025 EQUIPMENT REPLACEMENT 270,159 987,427 182,240 257,899 118,909 46.1% 257,900
TOTAL GENERAL FUND INCLUDING
EQUIPMENT REPLACEMENT 15,920,450 15,190,536 16,824,960 17,166,481 17,075,617 99.5% 17,186,925 MEASURE Q FUND 1,174,333 1,325,555 6,720,500 15,216,225 6,885,074 45.2% 9,752,400 ROAD MAINTENANCE REHAB ACCOUNT - - - - - 0% -
CITY OF DEL MAR
FISCAL YEAR 2024-25
FINAL FINANCIAL REPORT
EXPENDITURE SUMMARIES
Attachment E3
41 March 3, 2026 Item 12
ACTUAL ACTUAL ADOPTED FINAL ACTUAL %
EXP EXP BUDGET AMENDED EXP EXPENSED PROJECTED
FINAL FINAL (6/17/24) BUDGET FINAL EXP
DEPARTMENT FY 2022-23 FY 2023-24 FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25
CITY OF DEL MAR
FISCAL YEAR 2024-25
FINAL FINANCIAL REPORT
EXPENDITURE SUMMARIES
GAS TAX FUND
STREET MAINTENANCE 269,233 276,033 382,420 398,170 277,835 69.8% 318,505 STREET LIGHTS/SIGNS 174,857 161,080 198,850 199,390 152,887 76.7% 178,640 STREET LANDSCAPING 314,882 272,320 306,180 306,554 277,867 90.6% 285,780 TOTAL GAX TAX FUND 758,972 709,434 887,450 904,114 708,589 78.4% 782,925
OPEN SPACE FUND
POWERHOUSE OPERATIONS 426,569 379,591 485,030 489,199 481,065 98.3% 472,600 BEACH MAINTENANCE 334,473 363,402 451,620 452,370 380,586 84.1% 406,450 PARK MAINTENANCE 434,342 309,117 493,710 494,460 451,888 91.4% 498,080 TOTAL OPEN SPACE FUND 1,195,384 1,052,109 1,430,360 1,436,029 1,313,539 91.5% 1,377,130 SUPPLEMENTAL LAW ENFORCEMENT - - - - - 0% -
REGIONAL COMMUNICATION FUND 44,521 40,960 61,250 61,250 45,168 73.7% 61,250 GRANTS FUND 68,491 69,752 61,170 73,373 81,066 110.5% 67,520 HOUSING FUND 45,684 101,143 40,000 57,240 57,328 100.2% 57,240 AB 939 64,849 35,989 118,890 118,890 72,574 61.0% 119,530 PEG FEE FUND 10,736 18,510 31,200 31,200 31,813 102.0% 43,530 TOTAL GENERAL O&M FUNDS 19,283,420 18,543,989 26,175,780 35,064,802 26,270,767 74.9% 29,448,450
CAPITAL IMPROVEMENT FUNDS
OPEN SPACE CIP 146,197 584,768 81,000 1,922,398 206,364 10.7% 1,741,398 GENERAL FUND CIP 2,230,198 909,191 2,339,450 4,971,925 2,458,116 49.4% 4,971,925 DEBT SERVICE-CITY HALL 902,860 904,283 904,290 904,290 901,391 99.7% 904,290 TRANSNET II CIP 228,756 133,264 147,000 578,000 191,159 33.1% 578,000 RTCIP FUND - - - - - 0.0% -
TOTAL CAPITAL IMPROVEMENT FUNDS 3,508,011 2,531,506 3,471,740 8,376,613 3,757,030 44.9% 8,195,613 SPECIAL PROJECT FUND 430,060 452,662 669,460 1,538,274 191,058 12.4% 1,488,274 TOTAL GENERAL GOVERNMENTAL FUNDS 21,528,157 23,221,491 30,316,980 44,979,689 30,218,855 67.2% 39,132,337 WORKERS' COMPENSATION FUND 261,612 380,724 304,000 304,000 289,382 95.2% 304,000
WATER FUND
GENERAL ADMINISTRATION 2,051,373 1,653,945 2,157,790 2,188,122 2,184,901 99.9% 2,178,010 RISK MANAGEMENT 162,220 132,948 187,540 187,540 219,864 117.2% 202,900 RAW WATER SUPPLY 1,717,992 1,677,581 1,902,040 2,102,040 1,939,778 92.3% 2,100,000 TREATMENT/DELIVERY 374,796 441,012 461,090 461,090 355,734 77.2% 450,000 TOTAL WATER FUND O&M 4,306,381 3,905,486 4,708,460 4,938,792 4,700,278 95.2% 4,930,910 WATER CAP IMPROVEMENT - 1,367 622,000 741,217 - 0.0% 741,210 TOTAL WATER FUND 4,306,381 3,906,853 5,330,460 5,680,009 4,700,278 82.8% 5,672,120 42 March 3, 2026 Item 12
ACTUAL ACTUAL ADOPTED FINAL ACTUAL %
EXP EXP BUDGET AMENDED EXP EXPENSED PROJECTED
FINAL FINAL (6/17/24) BUDGET FINAL EXP
DEPARTMENT FY 2022-23 FY 2023-24 FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25
CITY OF DEL MAR
FISCAL YEAR 2024-25
FINAL FINANCIAL REPORT
EXPENDITURE SUMMARIES
CLEAN WATER FUND
PLANNING 78,255 66,315 71,460 91,460 92,943 101.6% 90,630 CODE ENFORCEMENT 39,025 37,415 39,560 39,560 34,562 87.4% 42,390 CLEAN WATER MANAGEMENT 307,573 281,209 344,030 344,030 273,178 79.4% 341,500 PUBLIC WORKS 287,993 275,141 330,420 351,744 310,951 88.4% 350,590 TOTAL CLEAN WATER O & M 712,846 660,080 785,470 826,794 711,634 86.1% 825,110 CLEAN WATER CAP IMPROVEMENT - 3,462 365,000 482,322 44,227 9.2% 416,500 TOTAL CLEAN WATER FUND 712,846 663,542 1,150,470 1,309,116 755,861 57.7% 1,241,610
WASTEWATER FUND
RISK MANAGEMENT 162,220 131,867 196,540 196,540 219,864 111.9% 200,500 WASTEWATER TRANSPORTATION 57,498 102,276 139,740 139,740 181,634 130.0% 134,000 WASTEWATER TREATMENT 927,290 909,145 1,039,550 1,169,550 1,141,611 97.6% 1,167,000 DEBT SERVICE 563,446 150,176 568,850 568,850 562,673 98.9% 568,850 WASTEWATER PROGRAM 2,550,377 2,109,626 2,752,790 2,807,622 2,567,858 91.5% 2,804,070 TOTAL WASTEWATER FUND O&M 4,260,831 3,403,091 4,697,470 4,882,302 4,673,640 95.7% 4,874,420 WASTEWATER CAPITAL IMPROVEMENT (501,927) - 425,000 797,679 - 0.0% 797,680 TOTAL WASTEWATER FUND 3,758,904 3,403,091 5,122,470 5,679,981 4,673,640 82.3% 5,672,100 TOTAL ENTERPRISE FUNDS 8,778,131 7,973,485 11,603,400 12,669,106 10,129,779 80.0% 12,585,830 TOTAL EXPENDITURES 29,882,366 32,261,234 42,224,380 57,952,795 40,638,016 70.1% 52,022,167 43 March 3, 2026 Item 12
City of Del Mar
Cash Flow Report
General Fund
Fiscal Year 2024-25
Adopted Mid-Year Final
FY 2025 FY 2025 Results
(6/17/24) (4/7/25) FY 2025 Difference
(A) (B) (C) (D = C- B)
Total Revenue 23,005,930 22,320,310 24,255,227 1,249,297 Total Expenditures 17,155,684 16,824,960 17,075,617 (80,067) Transfers
Gas Tax 772,680 787,745 612,579 (175,166)
Open Space 571,830 510,058 652,612 142,554
SLESF (160,000) (194,000) (199,467) (5,467)
Regional Comm 13,897 13,897 - (13,897)
Housing Fund - - (55,550) (55,550)
Clean Water (non-CIP) 150,000 126,772 392,919 266,147
RMRA Reimb (100,860) (208,245) - 208,245
PEG Fee Reimb (20,000) (10,000) (10,000) -
Total Transfers 1,227,547 1,026,227 1,393,092 366,865
City Hall Debt 904,290 904,290 901,391 (2,899)
Cash Flow (before CIP & SP) 3,363,513 $ 3,919,729 $ 4,885,127 $ 965,398 $ Transfer to CIP
Open Space 81,000 81,000 267,043 186,043
General Fund 927,500 1,212,808 2,304,376 1,091,568
CIP Reserve Transfer 2,500,000 2,500,000 2,500,000 -
Clean Water 365,000 416,500 (158,070) (574,570)
Total CIP 3,873,500 4,210,308 4,913,349 703,041
Transfer to Special Projects 739,700 669,460 (331,478) (1,071,178) Cash Flow (after CIP & SP) (1,179,447) $ (1,030,279) $ 303,256 $ 1,333,535 $ Reserves
Contingency Reserves 4,837,122 5,683,024 6,571,563 888,539 Self-Insurance 300,000 300,000 410,216 110,216
Housing Reserve 1,650,000 1,650,000 1,650,000 -
Pension Reserve 4,760,000 4,781,894 4,977,684 195,790
Leave Liability 100,000 100,000 100,000 -
Equipment Replacement 678,460 657,342 796,332 138,990
13,172,260 12,325,582 14,505,794 1,333,534
Other Reserve Balance
Capital Reserve 3,150,000 3,150,000 3,150,000 -
Attachment F
44 March 3, 2026 Item 12
Fiscal Year Accrued Liability Market Value of
Assets
Pension Reserve Unfunded
Accrued Liability
Plan's Funded
Ratio
Annual Pension
Contribution
CALPERS
Investment
Earnings
June 30, 2016 $43,061,758 $31,547,017 $ - $11,514,741 73.3% $843,723 0.6% June 30, 2017 45,368,252 33,812,916 249,087 11,306,249 75.1% 927,010 11.2% June 30, 2018 50,284,136 36,846,264 1,099,122 12,338,750 75.5% 995,243 8.6% June 30, 2019 52,871,543 38,713,741 1,949,170 12,208,632 76.9% 1,221,744 6.7% June 30, 2020 55,435,711 39,940,142 2,240,200 13,255,369 76.1% 1,410,817 4.7% June 30, 2021 59,195,784 48,413,744 2,528,950 8,253,090 86.1% 1,517,070 21.3% June 30, 2022 62,155,326 43,862,582 3,890,200 14,402,544 76.8% 1,697,869 -6.1% June 30, 2023 65,021,732 45,439,148 4,997,500 14,585,084 77.6% 1,860,532 5.8% June 30, 2024 67,090,804 47,813,311 6,321,894 12,955,599 80.7% 1,950,479 9.3% June 30, 2025* Not available Not available 6,877,684 10,919,832 Not available 2,255,847 11.6% * CalPERs Actuarial report for June 30, 2025 is not available. The unfunded accrued liability amount is based on the estimates prepared for the June 30, 2025 Annual Comprehensive Financial Report.
City of Del Mar
Pension Funding History
June 30, 2016 - June 30, 2025
Attachment G
45 March 3, 2026 Item 12
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:
TO: Honorable Mayor and City Councilmembers
FROM: Martin Boyd, Principal Engineer
Marco Camacho, Finance Manager/Treasurer
Monica Molina, Finance Officer
Via Ashley Jones, City Manager
DATE: March 3, 2026
SUBJECT: Undergrounding Program Updated Long-Term Cash Flow Analysis REQUESTED ACTION/RECOMMENDATION:
Staff recommends the City Council: 1) Receive a presentation on the Undergrounding Program updated long-term cash flow analysis; 2) Direct City staff to proceed with Scenario 2, advancing the design of Beach Colony (2) and 25th Street and phased construction of District 2; 3) Direct City staff to evaluate cash flows and phased construction for all upcoming districts; and 4) Direct staff to update the Finance-As-You-Go modeling previously presented in November 2024, to evaluate future opportunities for strategic and fiscally responsible financing to accelerate Undergrounding Program completion and reduce overall costs.
BACKGROUND:
With the completion of the Tewa Court/10th Street pilot project in February 2023, and Utility Undergrounding District (UUD) 1A (Stratford Court South) construction underway in 2024, the Council directed staff to identify potential funding strategies for undergrounding future districts, starting with UUDs X1A (Crest Canyon) and 1B (Stratford Court North). A map of the planned citywide Utility Undergrounding Districts (UUDs) is included as Attachment A.
On November 18, 2024, staff and the City’s financial consultant, NHA, presented three funding strategies, pay-as-you-go; finance-as-you-go; and a hybrid option, to the City Council to assist them with selecting an option that best addresses the community’s goals and project challenges. More information about each funding strategy can be found in the Item 11 – UP Undergrounding Financing staff report from the November 18, 2024 City Council meeting.
Over the following year, staff worked with UPAC and the City Council to further analyze project costs and cash flows to identify a final loan amount that would meet the Council’s stated borrowing goals and direction to pursue IBank funding. The Council ultimately directed staff to pursue an IBank loan amount sufficient to ensure that Crest Canyon (X1A) and Stratford Court North (1B) remain on schedule.
On September 22, 2025, the City Council received an update on Undergrounding projects and financing from City staff and approved a $5 million IBank loan amount to fund Crest Canyon (X1A) and Stratford Court North (1B). The IBank loan was subsequently executed on November 12, 2025.
1 March 3, 2026 Item 13
UPAC Agenda Report
Undergrounding Program Updated Cash Flow Analysis
February 23, 2026