General Fund Amendments
General Fund – Revenues
Staff analyzed revenues received by the City through February 2025. A trend analysis was performed to compare actual receipts received versus the annual budget. Any significant variances were analyzed in detail and projected through the end of the fiscal year. In a few cases, budget adjustments are being recommended based on other separate analyses or projections.
General Fund Amendments – Revenues
• Property Tax
Collections for this revenue category are ahead of estimates. The County of San Diego has adjusted the projected collections due to higher than projected collections. Staff is recommending Property Tax revenue be increased by $300,000 from $10,296,980 to $10,596,980 and Delinquent Property Tax revenue be increased by $45,000, from $20,402 to $65,402.
• Transient Occupancy Tax
In the beginning of the year, Staff conservatively estimates revenue expected from short-term vacation rental transient occupancy tax (STVR-TOT). The City continues to experience higher than anticipated TOT from short-term vacation rentals and hotels.
Due to this, Staff is recommending short-term vacation rental TOT revenue be increased by $100,000 from $1,082,832 to $1,182,832 and hotel TOT revenue be increased by $300,000 from $1,121,551.20 to $1,421,551.20.
• Motor Vehicle In Lieu Fees
The County of San Diego has adjusted the projected collections due to higher than projected collections. Staff is recommending Motor Vehicle In Lieu Fee revenue be increased by $140,000 from $2,180,000 to $2,320,000.
• Misc. Intergovernmental
Staff recommends increasing Miscellaneous Intergovernmental revenues by $70,000 from $20,000 to $90,000 due to unbudgeted Supplemental Pari-mutuel share payment. • Reimbursement Agreements
Staff recommends increasing Reimbursement Agreements revenue by $35,000 from $0 to $35,000 due to unbudgeted parking agreement payments. • Administrative Charge
Staff recommends decreasing Administrative Charge revenue by $332,909 from $1,230,967 to $898,058 due to a correction for Sanitation Fund administrative charge calculation.
• Chandler Investment Interest
In the beginning of the year, Staff conservatively estimated revenue expected from investment earnings. The City continues to experience higher than projected March 26, 2025
FY 2025 Mid-Year Budget Amendments
investments revenues each quarter. Due to this, Staff is recommending Chandler Investment interest be increased by $280,000 from $183,750 to $463,750.
Measure S Fund Amendments – Revenues
• Transaction & Use Tax (Measure S)
Collections for this revenue category are ahead of estimates. After meeting with HDL advisers, Staff is recommending Measure S Tax revenue be increased by $100,000 from $4,688,000 to $4,788,000.
A summary of the recommended changes for General Fund & Measure S revenues are listed in the table below:
General Fund Amendments – Expenditures
Staff has analyzed expenditures through February 2025 against budgeted expenditures.
Based on this analysis, Staff is recommending a net increase to General Fund expenditure accounts totaling $607,127.
Equipment and Supplies Expenditures
The recommended expenditure adjustment is an increase of $39,323 for Equipment & Supply expenditures.
Professional Services
The recommended expenditure adjustment is an increase of $132,731 for professional services.
Salaries & Benefits
Property Tax 300,000
Property Tax - Delinquent 45,000
Transient Occupancy Tax 300,000
STVR TOT 100,000
Motor Vehicle in Lieu 140,000
Misc. Intergovernmental 70,000
Reimbursement Agreements 35,000
Admin Charges (332,909)
Chandler Investment Interest 280,000
Operational Revenues $ 937,091
Total General Fund Revenues $ 937,091
Measure S - Transaction & Use Tax $ 100,000
Account Additions/ (Deletions)
March 26, 2025
FY 2025 Mid-Year Budget Amendments
The recommended expenditure adjustment is an increase of $146,019 for salaries & benefits.
Transfers
The recommended expenditure adjustment is an increase of $289,054 for transfers.
The details of the recommend changes for General Fund expenditures are listed in the following table:
Measure S Amendments - Expenditures
Department Description Amount
Civil Increased membership fees 2,630
Clerk's Reduce budget - no election this year (60,000)
Community Services Dissipator Grate Design Artist Stipend 2,000 Community Services Fabrication of 2 more new Temporary Public Art Pads 3,689 Community Services Installations of Temporary Public Art Pads 3,250 Community Services Updated Artist Stipend for 2-year loan for Temporary Public Art Program 9,000 Community Services New bench for Seascape Sur Beach Entry 5,000 Facilities Various supplies needed for Facilities Maintenance 10,000 Fire Increase cost for radio needs, as well as RCS NOC Fees not anticipated 33,800 Fire Increase cost of water based on projections 900
Marine Safety 2 Lg attendees at Water Safety Summit ($200 each) 400 Marine Safety California Marine Safety Cheifs Association Dues 500 Marine Safety Due to increased staff, increased clothing allowance cost projected 1,000 Marine Safety Truck 2481 light bar replacement 3,700
Marine Safety Tower move required additional heavy epuip due to sand 2,900 Park Maint. Repairs to Public Works Fleet 3,000
Park Maint. Purchase & planting of a Torrey Pine 14,000 Street Maint. Highland median maintenance agreement 3,554 Total Equipment & Supplies Expenditure Adjustments 39,323 Department Description Amount
Animal Control Increased contract cost 4,236
Engineering Deduction of Excess Funds in Professional Sevices (18,000) Facilities Window in City Managers Office 5,000
Fire Increased FMS cost based on projections 101,965
Human Resources LCW PSA - Fire FLSA Analysis/Study 20,000 Law Enforcement Increased Sheriff's Contract/LPR Cost 15,000 Marine Safety Vessel adrift. Tow and disposal 1,530
Park Maint. Repair Fence on CRT 3,000
Total Professional Services Expenditure Adjustments 132,731 Finance Increase CalPERS UAL payment 22,252
Fire Increase CalPERS UAL payment 104,590
Marine Safety Increase CalPERS UAL payment 19,177
Total Salaries & Benefits Expenditure Adjustments $ 146,019 Transfers SEA Closeout against GF 289,054
Total Transfers Expenditure Adjustments $ 289,054
March 26, 2025
FY 2025 Mid-Year Budget Amendments
Staff has analyzed expenditures through February 2025 against budgeted expenditures.
Based on this analysis, Staff is recommending a net increase to Measure S Fund expenditure accounts totaling $25,000.
Professional Services
The recommended expenditure adjustment is an increase of $25,000 for professional services, the details are listed in the following table:
Other Fund Amendments
Staff analyzed revenues received by the City through February 2025. A trend analysis was performed to compare actual receipts received versus the annual budget. Any significant variances were analyzed in detail and projected through the end of the fiscal year. Staff is recommending a total increase to revenues for other funds in the amount of $317,166.
Staff also analyzed expenditures through February 2025 against budgeted expenditures.
Based on this analysis, Staff is recommending a total increase to other fund expenditure accounts totaling $108,587.
The recommendations for increasing revenues and increasing expenditures for other funds are shown in the following table:
Expenditure Adjustments
Department Description Amount
Measure S Fund HDL & State of CA contract for administrative services for Measure S Tax 25,000 Total Measure S Expenditures $ 25,000
March 26, 2025
FY 2025 Mid-Year Budget Amendments
CEQA COMPLIANCE STATEMENT:
Not a project as defined by CEQA.
FISCAL IMPACT:
The adopted FY 2025 Budget initially projected a General Fund surplus of $188,234.
Throughout the first eight months of the fiscal year, the budget has been adjusted by various resolutions to a projected surplus of $51,099. With the FY 2025 mid-year adjustments to revenues and expenditures as discussed above, the General Fund Budget would realize an increase of revenues of $937,091 against a net expenditure increase of $607,127, thereby increasing the surplus, resulting in a projected operating surplus of $381,063. These changes are shown in the following table:
Fund Name
Revenue Adjustments Description Amount
Coastal/Visitors TOT Fund Increased TOT revenue projected 25,000 Public Safety Fund - MS Increase revenue for reimbursements 3,112 SEA Transfer from GF for closeout 289,054
Total Revenue Adjustments $ 317,166
Expenditure Adjustments
Asset Replacement Trakit GIS integration using technology fees 18,180 Camp - Jr. Guards Increased CalPERS UAL Payment 3,023
Camp - Recreation Increased CalPERS UAL Payment 4,215
Coastal/Visitors TOT Fund Increased cost for street banners 1,108 Coastal/Visitors TOT Fund Community Grants Award 11,000 COPS Fund Increased Sheriff contract cost 41,577
Marsolan Debt Service Increased debt payment 2,000
Measure S HDL & State of CA contract costs 25,000
MID #33 Increased CalPERS UAL Payment 946
MID #9C One-time surplus payment for Santa Fe Hills HOA 99,140 Misc. Grants Expenditures for CalApp Grant (prior year revenue) 48,300 OPEB PARS admin cost 11,000
Public Safety Fund - Fire Additional regulators, storage cabinets, new fridges, gym equip 91,500 Public Safety Fund - MS Reimbursable event expenditures 2,575 Sanitation Correct/reduce Admin Fee, increased CalPERS UAL pmt, Prop 218 Sewer Rate Noticing/Mailings (293,867)
Self Insurance Deductible for La Colonia Property Damage 30,454 Street Lighting Increased CalPERS UAL Payment 6,981
Successor Agency Increased CalPERS UAL Payment 1,091
Workers Comp Increased CalPERS UAL Payment 4,364
Total Expenditure Adjustments $ 108,587
Total Other Funds $ 208,579
March 26, 2025
FY 2025 Mid-Year Budget Amendments
The adopted FY 2025 Budget initially projected a Measure S Fund surplus of $3,051,600.
Throughout the first eight months of the fiscal year, the budget has been adjusted by various resolutions to a projected surplus of $1,902,329. With the FY 2025 mid-year adjustments to revenues and expenditures as discussed above, the Measure S Fund Budget would realize an increase of revenues of $100,000 against a net expenditure increase of $25,000, thereby increasing the surplus, resulting in a projected operating surplus of $1,977,329. These changes are shown in the following table:
WORK PLAN:
Fiscal Sustainability
OPTIONS:
• Approve Staff Recommendation
• Deny Staff Recommendation
CITY STAFF RECOMMENDATION:
Staff recommends the City Council:
1. Adopt Resolution 2025-023:
Adopted General Fund Revenues $ 24,265,232
Budget Adjustments & Transfers 745,000
Mid-Year Revenue Adjustments 937,091
Total General Fund Revenues $ 25,947,323
Adopted General Fund Expenditures & Transfers $ (24,076,998) Budget Adjustments & Transfers (882,135)
Mid-Year Expenditure Adjustments (607,127)
Total General Fund Expenditures $ (25,566,260)
Projected FY 2025 Surplus(Deficit) $ 381,063
Adopted Measure S Fund Revenues $ 4,488,000
Budget Adjustments & Transfers 200,000
Mid-Year Revenue Adjustments 100,000
Total General Fund Revenues** $ 4,788,000
Adopted Measure S Fund Expenditures & Transfers $ (1,436,400) Budget Adjustments & Transfers (1,349,271)
Mid-Year Expenditure Adjustments (25,000)
Total General Fund Expenditures $ (2,810,671)
Projected FY 2025 Surplus(Deficit) $ 1,977,329
March 26, 2025
FY 2025 Mid-Year Budget Amendments
a. Approving revised appropriations in the FY 2025 Adopted Budget. b. Authorize the City Treasurer to amend the FY 2025 Adopted Budget accordingly. ______________________________________
Alyssa Muto, City Manager
Attachments:
1. Exhibit A - Resolution 2025-023
RESOLUTION 2025-023
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SOLANA BEACH, CALIFORNIA, AUTHORIZING REVISIONS
TO THE FY 2025 ADOPTED BUDGET
WHEREAS, during the course of the fiscal year, new information becomes available to Staff which require adjustments to be made to the adopted budget; and WHEREAS, Section 3.08.040 of the Solana Beach Municipal Code limits the purchases by departments within the total departmental budget appropriations; and
WHEREAS, the City’s Operating Budget Policies state that total expenditures of a particular fund may not exceed that which is appropriated by the City Council, without a budget amendment; and
WHEREAS, the City Manager, in coordination with the Finance Director, reviewed and analyzed the expenditures of the Fiscal Year 2025 Adopted Budget and recommend certain amendments be made to the General Fund as well as other funds; and
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Solana Beach, California, does hereby resolve as follows:
1. That the above recitations are true and correct.
2. That the City Treasurer is authorized to amend appropriations in the 2025 fiscal year budget as further set forth in the attached Exhibit A.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Solana Beach, California, this 26th day of March 2025, by the following vote:
AYES: Councilmembers –
NOES: Councilmembers –
ABSENT: Councilmembers –
ABSTAIN: Councilmembers –
______________________________
LESA HEEBNER, Mayor
APPROVED AS TO FORM: ATTEST:
_________________________________ ______________________________ JOHANNA N. CANLAS, City Attorney ANGELA IVEY, City Clerk
GENERAL FUND
Revenues
Property Tax 300,000 $
Property Tax - Delinquent 45,000 $
Transient Occupancy Tax 300,000 $
STVR TOT 100,000 $
Motor Vehicle in Lieu 140,000 $
Misc. Intergovernmental 70,000 $
Reimbursement Agreements 35,000 $
Admin Charges (332,909) $
Chandler Investment Interest 280,000 $
Operational Revenues $ 937,091
Total General Fund Revenues $ 937,091
Expenditures Description
Civil Equipment & Supplies 2,630 $
Clerks Equipment & Supplies (60,000) $
Community Services Equipment & Supplies 22,939 $
Facilities Equipment & Supplies 10,000 $
Fire Equipment & Supplies 34,700 $
Marine Safety Equipment & Supplies 8,500 $
Park Maint. Equipment & Supplies 17,000 $
Street Maint. Equipment & Supplies 3,554 $
Animal Control Professional Services 4,236 $
Engineering Professional Services (18,000) $
Facilities Professional Services 5,000 $
Fire Professional Services 101,965 $
Human Resources Professional Services 20,000 $
Law Enforcement Professional Services 15,000 $
Marine Safety Professional Services 1,530 $
Park Maint. Professional Services 3,000 $
Finance Salaries & Benefits 22,252 $
Fire Salaries & Benefits 104,590 $
Marine Safety Salaries & Benefits 19,177 $
GF Transfers Transfers Out 289,054 $
Total Operational Expenditures $ 607,127
Total General Fund Net Change $ 329,964
MEASURE S FUND
Revenues Measure S - Transaction & Use Tax 100,000
Expenditures Measure S - Professional Services 25,000
Total Measure S Fund Net Change 75,000
OTHER FUNDS
Revenues Description
Coastal/Visitors TOT Fund Increased TOT revenue projected 25,000 $ Public Safety Fund - MS Increase revenue for reimbursements 3,112 $ SEA Transfer from GF for closeout 289,054 $
Total Revenue Adjustments 317,166 $
Expenditure Adjustments
Asset Replacement Trakit GIS integration using technology fees 18,180 $ Camp - Jr. Guards Increased CalPERS UAL Payment 3,023 $ Camp - Recreation Increased CalPERS UAL Payment 4,215 $ Coastal/Visitors TOT Fund Increased cost for street banners 1,108 $ Coastal/Visitors TOT Fund Community Grants Award 11,000 $ COPS Fund Increased Sheriff contract cost 41,577 $
Marsolan Debt Service Increased debt payment 2,000 $
Measure S HDL & State of CA contract costs 25,000 $
MID #33 Increased CalPERS UAL Payment 946 $
MID #9C One-time surplus payment for Santa Fe Hills HOA 99,140 $ Misc. Grants Expenditures for CalApp Grant (prior year revenue) 48,300 $ OPEB PARS admin cost 11,000 $
Public Safety Fund - Fire
Additional regulators, storage cabinets, new
fridges, gym equip 91,500 $
Public Safety Fund - MS Reimbursable event expenditures 2,575 $ Sanitation
Correct/reduce Admin Fee, increased CalPERS
UAL pmt, Prop 218 Sewer Rate Noticing/Mailings (293,867) $ Self Insurance Deductible for La Colonia Property Damage 30,454 $ Street Lighting Increased CalPERS UAL Payment 6,981 $
Successor Agency Increased CalPERS UAL Payment 1,091 $
Workers Comp Increased CalPERS UAL Payment 4,364 $
Total Expenditure Adjustments 108,587 $
Total Other Funds - Net Change $ 208,579
Account Additions/ (Deletions)
Exhibit A
Resolution 2025-023