Agenda packet — Solana Beach City Council, June 18, 2025 (part 1 of 3)

Solana Beach City Council Regular Meeting Agenda June 18, 2025 Page 1 of 10

CITY OF SOLANA BEACH

SOLANA BEACH CITY COUNCIL, SUCCESSOR AGENCY TO THE REDEVELOPMENT

AGENCY, PUBLIC FINANCING AUTHORITY, & HOUSING AUTHORITY AGENDA
Joint REGULAR Meeting
Wednesday, June 18, 2025 * 6:00 p.m.

City Hall / Council Chambers, 635 S. Highway 101, Solana Beach, California  City Council meetings are video recorded and archived as a permanent record. The video recording captures the complete proceedings of the meeting and is available for viewing on the City's website.  Posted Reports & Supplemental Docs contain records up to the cut off time prior to meetings for processing new submittals. Complete records containing meeting handouts, PowerPoints, etc. can be obtained through a Records Request.

PUBLIC MEETING ACCESS
The Regular Meetings of the City Council are held at 6:00pm on Wednesdays and are broadcast live. Please check the City’s website for the meeting schedule or any special meetings. The video taping of meetings are maintained as a permanent record and contain a detailed account of the proceedings. Council meeting tapings are archived and available for viewing on the City’s Public Meetings webpage.

WATCH THE MEETING
• Live web-streaming: Meetings web-stream live on the City’s website on the City’s Public Meetings webpage. Find the large Live Meeting button.
• Live Broadcast on Local Govt. Channel: Meetings are broadcast live on Cox Communications - Channel 19 / Spectrum (Time Warner)-Channel 24 / AT&T U-verse Channel 99. • Archived videos online: The video taping of meetings are maintained as a permanent record and contain a detailed account of the proceedings. Council meeting tapings are archived and available for viewing on the City’s Public Meetings webpage.

AGENDA MATERIALS
A full City Council agenda packet including relative supporting documentation is available at City Hall, the Solana Beach Branch Library (157 Stevens Ave.), La Colonia Community Ctr., and online www.cityofsolanabeach.org. Agendas are posted at least 72 hours prior to regular meetings and at least 24 hours prior to special meetings. Writings and documents regarding an agenda of an open session meeting, received after the official posting, and distributed to the Council for consideration, will be made available for public viewing at the same time. In addition, items received at least 1 hour 30 minutes prior to the meeting time will be uploaded online with the agenda posting. Materials submitted for consideration should be forwarded to the City Clerk’s department 858-720-2400. The designated location for viewing of hard copies is the City Clerk’s office at City Hall during normal business hours.

PUBLIC COMMENTS
Written correspondence (supplemental items) regarding an agenda item at an open session meeting should be submitted to the City Clerk’s Office at [email protected] with a) Subject line to include the meeting date b) Include the Agenda Item # as listed on the Agenda. o Correspondence received after the official posting of the agenda, but two hours prior to the meeting start time, on the meeting day, will be distributed to Council and made available online along with the agenda posting. All submittals received before the start of the meeting will be made part of the record. o Written submittals will be added to the record and not read out loud.

And/Or
Verbal Comment Participation:

Please submit a speaker slip to the City Clerk prior to the meeting, or the announcement of the Section/Item, to provide public comment. Allotted times for speaking are outlined on the speaker’s slip for each agenda section: Oral Communications, Consent, Public Hearings and Staff Reports.

Solana Beach City Council Regular Meeting Agenda June 18, 2025 Page 2 of 10 Public speakers have 3 minutes each to speak on each topic. Time may be donated by another individual who is present at the meeting to allow an individual up to 6 minutes to speak. Group: Time may be donated by two individuals who are present at the meeting allowing an individual up to 10 minutes to speak. Group Hearings: For public hearings only, time may be donated by two individuals who are present at the meeting allowing an individual up to 15 minutes to speak.

COUNCIL DISCLOSURE
Pursuant to the Levine Act (Gov’t Code Section 84308), any party to a permit, license, contract (other than competitively bid, labor or personal employment contracts) or other entitlement before the Council is required to disclose on the record any contribution, including aggregated contributions, of more than $250 made by the party or the party’s agents within the preceding 12 months to any Council Member. Participants and agents are requested to make this disclosure as well. The disclosure must include the name of the party or participant and any other person making the contribution, the name of the recipient, the amount of the contribution, and the date the contribution was made.

SPECIAL ASSISTANCE NEEDED
In compliance with the Americans with Disabilities Act of 1990, persons with a disability may request an agenda in appropriate alternative formats as required by Section 202. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s office (858) 720-2400 at least 72 hours prior to the meeting.

As a courtesy to all meeting attendees, please set all electronic devices to silent mode and engage in conversations outside the Council Chambers.

CITY COUNCILMEMBERS
Lesa Heebner
Mayor
Kristi Becker
Deputy Mayor / Councilmember District 2
Jill MacDonald
Councilmember District 4
David A. Zito
Councilmember District 1
Jewel Edson
Councilmember District 3
Alyssa Muto
City Manager
Johanna Canlas
City Attorney
Angela Ivey
City Clerk
SPEAKERS:

Please submit your speaker slip to the City Clerk prior to the meeting or the announcement of the Item. Allotted times for speaking are outlined on the speaker’s slip for Oral Communications, Consent, Public Hearings and Staff Reports.

READING OF ORDINANCES AND RESOLUTIONS:

Pursuant to Solana Beach Municipal Code Section 2.04.460, at the time of introduction or adoption of an ordinance or adoption of a resolution, the same shall not be read in full unless after the reading of the title, further reading is requested by a member of the Council. If any Councilmember so requests, the ordinance or resolution shall be read in full. In the absence of such a request, this section shall constitute a waiver by the council of such reading.

CALL TO ORDER AND ROLL CALL:

CLOSED SESSION REPORT:

FLAG SALUTE:

Solana Beach City Council Regular Meeting Agenda June 18, 2025 Page 3 of 10 APPROVAL OF AGENDA:

PROCLAMATIONS/CERTIFICATES: Ceremonial
None at the posting of this agenda
PRESENTATIONS: Ceremonial items that do not contain in-depth discussion and no action/direction.

None at the posting of this agenda
ORAL COMMUNICATIONS:

Comments relating to items on this evening’s agenda are taken at the time the items are heard.

This portion of the agenda provides an opportunity for members of the public to address the City Council on items relating to City business and not appearing on today’s agenda by submitting a speaker slip (located on the back table) to the City Clerk. Pursuant to the Brown Act, no action shall be taken by the City Council on public comment items. Council may refer items to the City Manager for placement on a future agenda. The maximum time allotted for each presentation is THREE MINUTES. No donations of time are permitted (SBMC 2.04.190). Please be aware of the timer light on the Council Dais.

CITY COUNCIL COMMUNITY ANNOUNCEMENTS - COMMENTARY:

An opportunity for City Council to make brief announcements or report on various activities. These items are not agendized for official City business with no action or substantive discussion.

CITY MANAGER / CITY ATTORNEY REPORTS:

An opportunity for the City Manager and City Attorney to make brief announcements or report on various activities. These items are not agendized for official City business with no action or substantive discussion.

A. CONSENT CALENDAR: (Action Items) (A.1. - A.9.)
Items listed on the Consent Calendar are to be acted in a single action of the City Council unless pulled for discussion. Any member of the public may address the City Council on an item of concern by submitting to the City Clerk a speaker slip (located on the back table) before the Consent Calendar is addressed. Those items removed from the Consent Calendar by a member of the Council will be trailed to the end of the agenda, while Consent Calendar items removed by the public will be heard immediately after approval of the Consent Calendar to hear the public speaker.

All speakers should refer to the public comment section at the beginning of the agenda for details.

Please be aware of the timer light on the Council Dais.

A.1. Register Of Demands. (File 0300-30)
Recommendation: That the City Council

1. Ratify the list of demands for May 17, 2025 – May 30, 2025.

Item A.1. Report (click here)
Posted Reports & Supplemental Docs contain records up to the cut off time, prior to the start of the meeting, for processing new submittals. The final official record containing handouts, PowerPoints, etc. can be obtained through a Records Request to the City Clerk’s Office.

Solana Beach City Council Regular Meeting Agenda June 18, 2025 Page 4 of 10 A.2. City Investment Policy Fiscal Year 2025/26. (File 0350-30) Recommendation: That the City Council

1. Adopt Resolution 2025-047 approving the City’s Investment Policy for FY 2025/26.

Item A.2. Report (click here)
Posted Reports & Supplemental Docs contain records up to the cut off time, prior to the start of the meeting, for processing new submittals. The final official record containing handouts, PowerPoints, etc. can be obtained through a Records Request to the City Clerk’s Office.

A.3. Fire Benefit Fee Fiscal Year 2025/26. (File 0495-20) Recommendation: That the City Council

1. Adopt Resolution 2025-053:
a. Setting the FY 2025/26 Fire Benefit Fee at $10.00 per unit, and b. Approving the Fee for levying on the tax roll.

Item A.3. Report (click here)
Posted Reports & Supplemental Docs contain records up to the cut off time, prior to the start of the meeting, for processing new submittals. The final official record containing handouts, PowerPoints, etc. can be obtained through a Records Request to the City Clerk’s Office.

A.4. Municipal Improvement Districts Benefit (MID) Fees Fiscal Year 2025/26. (File 0495-20)
Recommendation: That the City Council

1. Approve Resolution 2025-048 setting the Benefit Charges for MID No. 9C, Santa Fe Hills, at $232.10 per unit for FY 2025/26.

2. Approve Resolution 2025-049 setting the Benefit Charges for MID No. 9E, Isla Verde, at $68.74 per unit for FY 2025/26.

3. Approve Resolution 2025-050 setting the Benefit Charges for MID No. 9H, San Elijo Hills #2, at $289.58 per unit for FY 2025/26.

4. Approve Resolution 2025-051 setting the Benefit Charges for MID No. 33, Highway 101/Railroad Right-of-Way, at $3.12 per unit for FY 2025/26.

Item A.4. Report (click here)
Posted Reports & Supplemental Docs contain records up to the cut off time, prior to the start of the meeting, for processing new submittals. The final official record containing handouts, PowerPoints, etc. can be obtained through a Records Request to the City Clerk’s Office.

A.5. Appropriations Limit Fiscal Year 2025/26. (File 0330-60) Recommendation: That the City Council

1. Adopt Resolution 2025-052 establishing the FY 2025/26 Appropriations Limit in accordance with Article XIIIB of the California Constitution and Government Code Section 7910 and choosing the County of San Diego’s change in population growth to calculate the Appropriations Limit.

Item A.5. Report (click here)
Posted Reports & Supplemental Docs contain records up to the cut off time, prior to the start of the meeting, for processing new submittals. The final official record containing handouts, PowerPoints, etc. can be obtained through a Records Request to the City Clerk’s Office.

Solana Beach City Council Regular Meeting Agenda June 18, 2025 Page 5 of 10 A.6. Council Work Plan Fiscal Year 2025/26. (File 0410-08) Recommendation: That the City Council

1. Adopt the final Fiscal Year 2025/2026 Work Plan.

Item A.6. Report (click here)
Posted Reports & Supplemental Docs contain records up to the cut off time, prior to the start of the meeting, for processing new submittals. The final official record containing handouts, PowerPoints, etc. can be obtained through a Records Request to the City Clerk’s Office.

A.7. Salary Classification and Compensation Plans. (File 0520-10) Recommendation: That the City Council

1. Adopt Resolution 2025-074 approving the FY 2025/2026 Salary and Compensation Plans to include the following:
a. Approval of the update and modification to the 2025/2026 Management Salary Schedule, including approval of a 3% adjustment to the FY 2025/2026 Management Salary Schedule.
b. Approval of increasing the Executive Management’s Auto Allowance to $495 per month.
c. Approval of a 3% adjustment to the FY 2025/2026 Confidential Salary Schedule.
d. Approval of a 3% adjustment to the FY 2025/2026 SBEA Miscellaneous Salary Schedule.
e. Approval of a 3% adjustment to the FY 2025/2026 Marine Safety Salary Schedule.
f. Approval of a 3% adjustment to the FY 2025/2026 Fire Salary Schedule. g. Approval of a 3% adjustment to the FY 2025/2026 PartTime/Temporary/Seasonal Salary Schedule.  Approval of the following new Staff positions and creation of two new classification:
• Senior Management Analyst (new FTE)
• Management Assistant - Sustainability (new FTE)
• Building Official (new classification and FTE)
• City Planner (new classification, no additional FTE)
h. Approval for creating a new Building Official classification and incorporating the new position into the FY 2025/2026 Management Employees’ Salary Schedule 1 at pay grade M4.
i. Approval for creating a new City Planner classification and incorporating the new position into the FY 2025/2026 Management Employees’ Salary Schedule 1 at pay grade M7.

Item A.7. Report (click here)
Posted Reports & Supplemental Docs contain records up to the cut off time, prior to the start of the meeting, for processing new submittals. The final official record containing handouts, PowerPoints, etc. can be obtained through a Records Request to the City Clerk’s Office.

Solana Beach City Council Regular Meeting Agenda June 18, 2025 Page 6 of 10 A.8. EV ARC Solar/Battery Electric Vehicle Charging Station at La Colonia. (File 1010- 10)
Recommendation: That the City Council

1. Adopt Resolution 2025-073 authorizing the City Manager to execute a contract for $93,896 with Beam for an EV ARC charging station at La Colonia.

Item A.8. Report (click here)
Posted Reports & Supplemental Docs contain records up to the cut off time, prior to the start of the meeting, for processing new submittals. The final official record containing handouts, PowerPoints, etc. can be obtained through a Records Request to the City Clerk’s Office.

A.9. Sewer and Storm Drain Lining Project Contract Award. (File 0820-40) Recommendation: That the City Council

1. Adopt Resolution 2025-072:
a. Awarding the construction contract to Sancon Technologies, in the amount of $550,786, for the 2025 Sewer & Storm Drain Trenchless Rehabilitation Project, Bid 2025-08.
b. Approving an amount of $82,614 for construction contingency. c. Approving $84,630 from FY 2025/26 Sanitary Sewer Pipeline Rehabilitation capital improvement budget in account 5096510.66610.
d. Authorizing the City Manager to execute the construction contract on behalf of the City.
e. Authorizing the City Manager to approve cumulative change orders up to the construction contingency amount.

Item A.9. Report (click here)
Posted Reports & Supplemental Docs contain records up to the cut off time, prior to the start of the meeting, for processing new submittals. The final official record containing handouts, PowerPoints, etc. can be obtained through a Records Request to the City Clerk’s Office.

NOTE: The City Council shall not begin a new agenda item after 10:30 p.m. unless approved by a unanimous vote of all members present. (SBMC 2.04.070) B. PUBLIC HEARINGS: (B.1. – B.5.)
This portion of the agenda provides citizens an opportunity to express their views on a specific issue as required by law after proper noticing by submitting a speaker slip (located on the back table) to the City Clerk. After considering all of the evidence, including written materials and oral testimony, the City Council must make a decision supported by findings and the findings must be supported by substantial evidence in the record. An applicant or designee(s) for a private development/business project, for which the public hearing is being held, is allotted a total of fifteen minutes to speak, as per SBMC 2.04.210. A portion of the fifteen minutes may be saved to respond to those who speak in opposition. All other speakers should refer to the public comment section at the beginning of the agenda for time allotment. Please be aware of the timer light on the Council Dais.

Solana Beach City Council Regular Meeting Agenda June 18, 2025 Page 7 of 10 B.1. Public Hearing: Solid Waste and Recycling Rates for EDCO Waste and Recycling. (File 1030-15)
Recommendation: That the City Council

1. Conduct the Public Hearing: Open the Public Hearing; Report Council disclosures; Report written protests received; Receive Public Testimony; Close the Public Hearing.

2. Following the Public Hearing, consider adopting Resolution 2025-031 approving EDCO’s rate review request increasing solid waste, recycling, and organics rates for FY 2025-26 in accordance with the Franchise Agreement.

Item B.1. Report (click here)
Posted Reports & Supplemental Docs contain records up to the cut off time, prior to the start of the meeting, for processing new submittals. The final official record containing handouts, PowerPoints, etc. can be obtained through a Records Request to the City Clerk’s Office.

B.2. Public Hearing: Vacancies, Recruitments, and Retention Efforts in Compliance with Assembly Bill 2561. (File 0550-10)
Recommendation: That the City Council

1. Receive report.

Item B.2. Report (click here)
Posted Reports & Supplemental Docs contain records up to the cut off time, prior to the start of the meeting, for processing new submittals.

The final official record containing handouts, PowerPoints, etc. can be obtained through a Records Request to the City Clerk’s Office.

B.3. Public Hearing: Budget Adoption for Fiscal Years 2026 and 2027. (File 0330-30) Recommendation: That the City Council

1. Conduct the Public Hearing: Open Public Hearing, Report Council disclosures, receive public testimony, close the public hearing.

2. Adopt Resolution 2025-070 approving the FY 2026 and FY 2027 Budget and Increasing the General Fund Reserve Policy.

Item B.3. Report (click here)
Posted Reports & Supplemental Docs contain records up to the cut off time, prior to the start of the meeting, for processing new submittals. The final official record containing handouts, PowerPoints, etc. can be obtained through a Records Request to the City Clerk’s Office.

Solana Beach City Council Regular Meeting Agenda June 18, 2025 Page 8 of 10 B.4. Public Hearing: Coastal Rail Trail (CRT) Maintenance District Fiscal Year 2025/26. (File 0495-20)
Recommendation: That the City Council

1. Conduct the Public Hearing: open the public hearing, report Council disclosures, receive public testimony, close the public hearing.

2. Adopt Resolution 2025-063 approving the Engineer's Report regarding the Coastal Rail Trail Maintenance District.

3. Adopt Resolution 2025-064 ordering the levy and collection of the annual assessments regarding the Coastal Rail Trail Maintenance District for Fiscal Year 2025/26.

Item B.4. Report (click here)
Posted Reports & Supplemental Docs contain records up to the cut off time, prior to the start of the meeting, for processing new submittals. The final official record containing handouts, PowerPoints, etc. can be obtained through a Records Request to the City Clerk’s Office.

B.5. Public Hearing: Streetlight Maintenance District Fiscal Year 2025/26. (File 0495- 20)
Recommendation: That the City Council

1. Conduct the Public Hearing: open the public hearing, report Council disclosures, receive public testimony and close the public hearing.

2. Adopt Resolution 2025-065 confirming the diagram and assessment and approving the City of Solana Beach Lighting Maintenance District Engineer’s Report.

3. Adopt Resolution 2025-066 ordering the levy and collection of annual assessments for FY 2025/26 and ordering the transmission of charges to the County Auditor for collection.

Item B.5. Report (click here)
Posted Reports & Supplemental Docs contain records up to the cut off time, prior to the start of the meeting, for processing new submittals. The final official record containing handouts, PowerPoints, etc. can be obtained through a Records Request to the City Clerk’s Office.

C. STAFF REPORTS: (C.1. – C.2.)
Submit speaker slips to the City Clerk.

All speakers should refer to the public comment section at the beginning of the agenda for time allotments. Please be aware of the timer light on the Council Dais.

C.1. Adoption (2nd Reading) of Ordinance 539 Regarding Adoption of New Cal Fire Hazard Severity Zone Maps. (File 0260-50)
Recommendation: That the City Council

1. Adopt Ordinance 539 adopting Cal Fire’s updated Fire Hazard Severity Zone (FHSZ) maps for Local Responsibility Areas (LRAs) as required by California Government Code Section 51179.

Item C.1. Report (click here)
Posted Reports & Supplemental Docs contain records up to the cut off time, prior to the start of the meeting, for processing new submittals. The final official record containing handouts, PowerPoints, etc. can be obtained through a Records Request to the City Clerk’s Office.

Solana Beach City Council Regular Meeting Agenda June 18, 2025 Page 9 of 10 C.2. Community Grant Program Awards for Fiscal Year 2025/26. (File 0330-25) Recommendation: That the City Council

1. Select the FY 2025/26 Community Grant Program recipients and identify an award amount to each recipient.

2. Adopt Resolution 2025-069 authorizing the funding for the selected community grant applicants for financial assistance under the FY 2025/26 Community Grant Program.

Item C.2. Report (click here)
Posted Reports & Supplemental Docs contain records up to the cut off time, prior to the start of the meeting, for processing new submittals. The final official record containing handouts, PowerPoints, etc. can be obtained through a Records Request to the City Clerk’s Office.

LEGISLATIVE POLICY AND CORRESPONDENCE:

WORK PLAN COMMENTS:

Adopted June 26, 2024
COMPENSATION & REIMBURSEMENT DISCLOSURE:

GC: Article 2.3. Compensation: 53232.3. (a) Reimbursable expenses shall include, but not be limited to, meals, lodging, and travel. 53232.3 (d) Members of a legislative body shall provide brief reports on meetings attended at the expense of the local agency “City” at the next regular meeting of the legislative body.

COUNCIL COMMITTEE REPORTS: Council Committees
REGIONAL COMMITTEES: (outside agencies, appointed by this Council) a. City Selection Committee (meets twice a year) Primary-Heebner, Alternate-Edson b. Clean Energy Alliance (CEA) JPA: Primary-Becker, Alternate-Zito c. County Service Area 17: Primary-MacDonald, Alternate-Edson d. Escondido Creek Watershed Authority: Becker / Staff (no alternate). e. League of Ca. Cities’ San Diego County Executive Committee: Primary-MacDonald, Alternate-Becker. Subcommittees determined by its members. f. League of Ca. Cities’ Local Legislative Committee: Primary-MacDonald, AlternateBecker g. League of Ca. Cities’ Coastal Cities Issues Group (CCIG): Primary-MacDonald, Alternate-Becker
h. North County Dispatch JPA: Primary-MacDonald, Alternate-Becker i. North County Transit District: Primary-Edson, Alternate-MacDonald j. Regional Solid Waste Association (RSWA): Primary-Zito, Alternate-MacDonald k. SANDAG: Primary-Heebner, 1st Alternate-Zito, 2nd Alternate-Edson. Subcommittees determined by its members.
l. SANDAG Shoreline Preservation Committee: Primary-Becker, Alternate-Zito m. San Dieguito River Valley JPA: Primary-MacDonald, Alternate-Becker n. San Elijo JPA: Primary-Zito, Primary-Becker, Alternate-City Manager o. 22nd Agricultural District Association Community Relations Committee: Primary-Edson, Primary-Heebner
STANDING COMMITTEES: (All Primary Members) (Permanent Committees) a. Business Liaison Committee – Zito, Edson
b. Fire Dept. Management Governance & Organizational Evaluation – Edson, MacDonald
Solana Beach City Council Regular Meeting Agenda June 18, 2025 Page 10 of 10 c. Highway 101 / Cedros Ave. Development Committee – Heebner, Edson d. Parks and Recreation Committee – Zito, Edson
e. Public Arts Committee – Edson, Heebner
f. School Relations Committee – Becker, MacDonald
g. Solana Beach-Del Mar Relations Committee – Heebner, Edson

CITIZEN COMMISSION(S)
a. Climate & Resiliency Commission – Zito, Becker
ADJOURN:

Next Regularly Scheduled Meeting is July 02, 2025
Always refer to the City’s website for an updated schedule or contact City Hall. www.cityofsolanabeach.org 858-720-2400

AFFIDAVIT OF POSTING

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

CITY OF SOLANA BEACH
§
I, Angela Ivey, City Clerk of the City of Solana Beach, do hereby certify that this Agenda for the June18, 2025 Council Meeting was called by City Council, Successor Agency to the Redevelopment Agency, Public Financing Authority, and the Housing Authority of the City of Solana Beach, California, was provided and posted on June 11, 2025 at 11:30 a.m. on the City Bulletin Board at the entrance to the City Council Chambers. Said meeting is held at 6:00 p.m., June 18, 2025, in the Council Chambers, at City Hall, 635 S.

Highway 101, Solana Beach, California.

Angela Ivey, City Clerk
City of Solana Beach, CA
UPCOMING CITIZEN CITY COMMISSION AND COMMITTEE MEETINGS:

Regularly Scheduled, or Special Meetings that have been announced, are posted on each Citizen Commission’s Agenda webpage. See the Citizen Commission’s Agenda webpages or the City’s Events Calendar for updates.
o Budget & Finance Commission
o Climate & Resiliency Commission
o Parks & Recreation Commission
o Public Arts Commission
o View Assessment Commission
}
CITY COUNCIL ACTION: ____________________________________________________ _________________________________________________________________________ AGENDA ITEM # A.1.

STAFF REPORT

Section 3.04.020 of the Solana Beach Municipal Code requires that the City Council ratify a register of demands which represents all financial demands made upon the City for the applicable period.

DISCUSSION:

Staff certifies that the register of demands has been reviewed for accuracy, that funds are available to pay the above demands, and that the demands comply with the adopted budget.

CEQA COMPLIANCE STATEMENT:

Not a project as defined by CEQA.

FISCAL IMPACT:

The register of demands for May 17, 2025, through May 30, 2025, reflects total expenditures of $639,356.07 from various City sources.

WORK PLAN: N/A
OPTIONS:
• Ratify the register of demands.
• Do not ratify and provide direction.

Register of Demands: 05/17/25 through 05/30/25
Check Register - Disbursement Fund (Attachment 1) $ 373,590.69 Net Payroll Staff P24 May 23, 2025 265,765.38
TOTAL $ 639,356.07
June 18, 2025
Register of Demands

Page 2 of 2 ends

CITY STAFF RECOMMENDATION:

Staff recommends that the City Council ratify the above register of demands. ________________________
Alyssa Muto, City Manager
Attachments:

1. Check Register – Disbursement Fund
Page: 1 of 6
City of Solana Beach
Register of Demands

5/17/2025 - 5/30/2025
Department
Vendor Description Date
Check/EFT
Number Amount
100 - GENERAL FUND
SOLANA BEACH FIREFIGHTERS ASSOC Payroll Run 1 - Warrant P24 05/22/2025 9002164 $1,080.00 MISSION SQUARE PLAN 302817 Payroll Run 1 - Warrant P24 05/22/2025 9002160 $11,030.69 DEPARTMENT OF CONSERVATION JAN-MAR 25-SMIP FEE 05/22/2025 108303 $945.00 STERLING HEALTH SERVICES, INC. PC11 FSA CONTRIBUTIONS 05/29/2025 9002179 $441.67 STERLING HEALTH SERVICES, INC. P23 FSA/DCA CONTRIBUTIONS 05/29/2025 9002179 $2,386.12 STERLING HEALTH SERVICES, INC. P23 FSA/DCA CONTRIBUTIONS 05/29/2025 9002179 $1,364.54 COALEENA RICHARDSON RFND: FCCC 05/17/25 05/29/2025 108323 $500.00 LENA MANOUKIAN RFND: SB0650768 05/29/2025 108337 $36.00 MERCEDEH KAZEMZADEH RFND: SB0653412 05/29/2025 108338 $46.00 GARY & PATRICIA COAD RFND: SB0653306 05/29/2025 108333 $42.50 NICHOLAS JOHNSON RFND: SB0652862 05/29/2025 108340 $46.00 JILLIAN MUSCHELL RFND: SB0652858 05/29/2025 108335 $42.50 THE KRUGER FAMILY TRUST RFND: GRD22-0014 05/29/2025 108346 $80,578.48 PAINTLESS DENT REPAIR RFND: ENC24-0034 05/29/2025 108341 $244.00 CONSTRUCTION SOLUTIONS GROUP INC RFND: B24-0615 05/29/2025 108324 $521.89 CONSTRUCTION SOLUTIONS GROUP INC RFND: B24-0615 05/29/2025 108324 $4.94 CONSTRUCTION SOLUTIONS GROUP INC RFND: B24-0615 05/29/2025 108324 $2.00 CONSTRUCTION SOLUTIONS GROUP INC RFND: B24-0615 05/29/2025 108324 $35.52 CONSTRUCTION SOLUTIONS GROUP INC RFND: B24-0615 05/29/2025 108324 $35.52 CONSTRUCTION SOLUTIONS GROUP INC RFND: B24-0615 05/29/2025 108324 $35.52 INSTATAX P24 TAX INPUT 05/21/2025 990120365 $2,926.01
PAYMENTUS CORPORATION APRIL 25 05/29/2025 108342 $713.22 IAFF-MERP MAY 25-FF TRUST PAYMENT 05/29/2025 9002185 $4,900.00 AZITA VAKILI, D.M.D., A DENTAL CORPORATION RFND: SBGR-401 05/29/2025 108319 $49,389.00 ERENDIDA JANET BURKE REISSUE: CHK# 106834 - 06/20/24 05/29/2025 108334 $151.54 CONSTRUCTION SOLUTIONS GROUP INC RFND: B24-0615 05/29/2025 108324 $507.43 STERLING HEALTH SERVICES, INC. P24 FSA/DCA CONTRIBUTIONS 05/29/2025 9002179 $2,386.12 STERLING HEALTH SERVICES, INC. P24 FSA/DCA CONTRIBUTIONS 05/29/2025 9002179 $1,364.54 INSTATAX P24 TAX INPUT 05/21/2025 990120365 $43,331.35
INSTATAX P24 TAX INPUT 05/21/2025 990120365 $1,576.38
INSTATAX P24 TAX INPUT 05/21/2025 990120365 $10,098.76
INSTATAX P24 TAX INPUT 05/21/2025 990120365 $17,526.42
TOTAL GENERAL FUND $234,289.66
1005100 - CITY COUNCIL
US BANK CARDS 05/22/2025 108297 $21.27
US BANK COUNCIL CLOSED SESSION DINNER 05/22/2025 108297 $159.11 US BANK COUNCIL CLOSED SESSION DINNER 05/22/2025 108297 $198.72 TOTAL CITY COUNCIL $379.10
1005150 - CITY CLERK
CORODATA RECORDS MANAGEMENT, INC APR 25 - STORAGE 05/22/2025 108300 $1,025.98 KFORCE INC. TEMP SERVICES - 05/15/25-CLK 05/29/2025 9002171 $813.20 KFORCE INC. TEMP SERVICES - 05/08/25 - CLK 05/29/2025 9002171 $650.00 Page: 2 of 6
GABRIELA ZOQUIAPA MILEAGE: 04/29/25, 05/02/25 05/22/2025 108307 $34.30 THE PITNEY BOWES BANK INC-RESERVE ACT: 29312709 - POSTAGE PURCHASE 05/22/2025 9002162 $2,500.00 THE PIN CENTER CITY LOGO PINS 05/29/2025 108347 $725.50 TOTAL CITY CLERK $5,748.98
1005200 - CITY MANAGER
US BANK CM CLOSED SESSION DINNER 05/22/2025 108297 $24.00 US BANK TRAINING: AI TOOLS 05/22/2025 108297 $295.00
US BANK CM DEPARTMENT DROPBOX ACCOUNT 05/22/2025 108297 $119.88 US BANK ERASERS 05/22/2025 108297 $4.34
VERIZON WIRELESS SD 962428212-0001 - 03/29/25-04/28/25 05/22/2025 108316 $41.57 TOTAL CITY MANAGER $484.79
1005250 - LEGAL SERVICES
US BANK ATTORNEY CLOSED SESSION DINNER 05/22/2025 108297 $27.00 TOTAL LEGAL SERVICES $27.00
1005350 - SUPPORT SERVICES
XEROX CORPORATION APR 25-XEROX FIERY -PLN/ENG 05/29/2025 108351 $132.61 XEROX CORPORATION APR 25-XEROX FIERY -UPSTAIRS 05/29/2025 108351 $132.61 XEROX CORPORATION APR 25-XEROX FIERY -CLK 05/29/2025 108351 $122.84 XEROX CORPORATION APR 25-XEROX -UPSTAIRS 05/29/2025 108351 $175.17 XEROX CORPORATION APR 25-XEROX -UPSTAIRS 05/29/2025 108351 $298.25 XEROX CORPORATION APR 25-XEROX - CLK 05/29/2025 108351 $265.44 XEROX CORPORATION APR 25-XEROX - CLK 05/29/2025 108351 $271.68 XEROX CORPORATION APR 25-XEROX - PLN/ENG 05/29/2025 108351 $106.73 XEROX CORPORATION APR 25-XEROX - PLN/ENG 05/29/2025 108351 $546.78 TOTAL SUPPORT SERVICES $2,052.11
1005400 - HUMAN RESOURCES
SHARP REES-STEALY MEDICAL GROUP SHC#: 700000690-SCREENING 05/22/2025 9002163 $52.00 US BANK HR MANDATED TRAINING 05/22/2025 108297 $8.99
US BANK HR MANDATED TRAINING 05/22/2025 108297 $8.99
US BANK COVID TESTS 05/22/2025 108297 $184.87
DONNOE & ASSOCIATES, INC CLK-TEST RENTAL 05/15/25-05/29/25 05/29/2025 108330 $770.00 DEPARTMENT OF JUSTICE APR 25-FINGERPRINT APPS 05/22/2025 108304 $128.00 COASTAL LIVE SCAN AND INSURANCE APR 25-FINGERPRINT APP 05/22/2025 108299 $120.00 GABRIELA ZOQUIAPA REIMB: COMMUNICATION CLASS 05/29/2025 108332 $55.00 CAROLYN ACKERMAN REIMB: REPORTER CERT 05/29/2025 108322 $8.99 TOTAL HUMAN RESOURCES $1,336.84
1005450 - INFORMATION SERVICES
COX COMMUNICATIONS INC 001341003973701 - 05/19/25-06/18/25 05/29/2025 108326 $294.95 MANAGED SOLUTION MAY 25-Office 365 and IT Support 05/29/2025 9002172 $2,614.56 MANAGED SOLUTION MAY 25-Office 365 and IT Support 05/29/2025 9002172 $38.00 TING FIBER INC. MAY 25-FIBER OPTICS-CITY FACILITIES 05/29/2025 9002182 $3,334.86 TOTAL INFORMATION SERVICES $6,282.37
1005550 - PLANNING
UT SAN DIEGO - NRTH COUNTY PUB NTC: DRP23-011/PRP23-012/SDP23-015/SDP23- 016
05/22/2025 108315 $810.47
UT SAN DIEGO - NRTH COUNTY PUB HRNG:MOD25-001 05/22/2025 108315 $596.32 LAURIE LEVINE APR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $175.00 TOTAL PLANNING $1,581.79
1005590 - CODE ENFORCEMENT
DATATICKET INC. MAR 25-PARKING CITE ADMIN 05/22/2025 108302 $1,370.04 Page: 3 of 6
DATATICKET INC. MAR 25-PARKING CITE ADMIN 05/22/2025 108302 $85.00 VERIZON WIRELESS SD 442224168-00001 - 03/24/25-04/23/25 05/22/2025 108316 $193.08 TOTAL CODE ENFORCEMENT $1,648.12
1006120 - FIRE DEPARTMENT
SANTA FE IRRIGATION DISTRICT 005512-000 - 03/05/25-05/01/25 05/22/2025 108314 $754.71 US BANK HEADSET REPAIR 05/22/2025 108297 $22.75
US BANK RETURNED BOLT CUTTERS 05/22/2025 108297 ($148.42) US BANK HEADSET REPAIR 05/22/2025 108297 $10.05
US BANK GYM SIGN 05/22/2025 108297 $45.11
VERIZON WIRELESS SD 962428212-0001 - 03/29/25-04/28/25 05/22/2025 108316 $667.20 ROBERT BARRON MILEAGE: 01/24/25 - 03/21/25 05/22/2025 108313 $446.60 ERIC PHILLIPS REIMB: FIRE DEPT TRAINING 04/20-25/25 05/22/2025 108306 $1,217.83 FIRE STATS LLC APR 25-MAINT & OPERATION 05/29/2025 108331 $212.50 JOHN SPANN REIMB: CORONA AUTO X - 02/28/25-03/02/25 05/22/2025 108308 $2,008.55 CHRISTOPHER SCHMIT REIMB: CORONA AUTO EXTRICATION 02/28/25- 03/02/25
05/22/2025 108298 $2,483.55
TOTAL FIRE DEPARTMENT $7,720.43
1006170 - MARINE SAFETY
LEE'S LOCK & SAFE INC PADLOCKS/REKEYING 05/29/2025 108336 $464.52 VERIZON WIRELESS SD 962428212-0001 - 03/29/25-04/28/25 05/22/2025 108316 $152.04 TOTAL MARINE SAFETY $616.56
1006510 - ENGINEERING
NORTH COUNTY TRANSIT DISTRICT #28024 - DATE PALM REMOVAL 05/29/2025 9002176 $377.27 VERIZON WIRELESS SD 362455526-00001 - 04/02/25-05/01/25 05/22/2025 108316 $53.03 WEST COAST CIVIL, INC APR 25- PROF SERVICES 05/29/2025 108349 $3,875.00 BFS GROUP OF CALIFORNIA LLC HARD HATS 05/29/2025 108328 $54.79 CALIFORNIA BACKFLOW & CHLORINATION LLC BACKFLOW TESTS/ONLINE FILING FEE 05/29/2025 108321 $300.00 TOTAL ENGINEERING $4,660.09
1006520 - ENVIRONMENTAL SERVICES
MISSION LINEN & UNIFORM INC FY25 UNIFORM SERVICES FOR PUBLIC WORKS 05/29/2025 108339 $16.97 MIKHAIL OGAWA ENGINEERING, INC. APR 25- STORMWATER PROGRAM 05/29/2025 9002175 $9,187.07 VERIZON WIRELESS SD 362455526-00001 - 04/02/25-05/01/25 05/22/2025 108316 $53.03 DOG WASTE DEPOT DOG WASTE BAGS 05/29/2025 108329 $4,858.64 CLEAN EARTH ENVIROMENTAL SOLUTIONS APR 25- HHW COLLECTION 05/22/2025 9002159 $1,224.74 CLEAN EARTH ENVIROMENTAL SOLUTIONS APRIL 25 05/22/2025 9002159 $38.84 TOTAL ENVIRONMENTAL SERVICES $15,379.29
1006530 - STREET MAINTENANCE
MISSION LINEN & UNIFORM INC FY25 UNIFORM SERVICES FOR PUBLIC WORKS 05/29/2025 108339 $27.55 VERIZON WIRELESS SD 362455526-00001 - 04/02/25-05/01/25 05/22/2025 108316 $53.03 BFS GROUP OF CALIFORNIA LLC STAIN/HEX BOLT 05/22/2025 108305 $24.32 TOTAL STREET MAINTENANCE $104.90
1006540 - TRAFFIC SAFETY
VERIZON WIRELESS SD 362455526-00001 - 04/02/25-05/01/25 05/22/2025 108316 $37.88 TRAFFIC SUPPLY, INC SIGNS/STENCILS 05/22/2025 9002166 $299.02 TRAFFIC SUPPLY, INC CUSTOM SIGNS/SS STRAP/STEEL FLRD LEG SADDLE 05/29/2025 9002183 $319.12 ALL CITY MANAGEMENT SERVICES, INC CROSSING GUARDS-04/27/25-05/10/25 05/29/2025 9002167 $12,851.56 TOTAL TRAFFIC SAFETY $13,507.58
1006550 - STREET CLEANING
PRIDE INDUSTRIES APR 25-TRASH ABATEMENT SERVICES 05/22/2025 108311 $1,656.34 TOTAL STREET CLEANING $1,656.34
Page: 4 of 6
1006560 - PARK MAINTENANCE
MISSION LINEN & UNIFORM INC FY25 UNIFORM SERVICES FOR PUBLIC WORKS 05/29/2025 108339 $20.13 SANTA FE IRRIGATION DISTRICT 005506-015 - 03/18/25-05/15/25 05/29/2025 108344 $341.64 SANTA FE IRRIGATION DISTRICT 005506-016 - 03/18/25-05/15/25 05/29/2025 108344 $803.94 SANTA FE IRRIGATION DISTRICT 005979-003 - 03/18/25-05/15/25 05/29/2025 108344 $366.87 VERIZON WIRELESS SD 362455526-00001 - 04/02/25-05/01/25 05/22/2025 108316 $75.75 1 STOP TONER & INKJET, LLC TONER 05/29/2025 9002177 $80.03 BFS GROUP OF CALIFORNIA LLC COUPLING/FEEDER PAN/PIPE SAW 05/29/2025 108328 $103.63 TOTAL PARK MAINTENANCE $1,791.99
1006570 - PUBLIC FACILITIES
LEE'S LOCK & SAFE INC KEYS 05/29/2025 108336 $37.34
CONSOLIDATED ELECTRICAL DIST INC BULBS/LED BULBS 05/29/2025 9002169 $489.19 LALLEY CONSTRUCTION NOV 24- ON-CALL AS-NEEDED REPAIR SERVICES 05/22/2025 108309 $5,200.00 LALLEY CONSTRUCTION OCT/DEC 24- ON-CALL AS-NEEDED REPAIR SERVICES 05/22/2025 108309 $880.00 LALLEY CONSTRUCTION DEC 24- ON-CALL AS-NEEDED REPAIR SERVICES 05/22/2025 108309 $120.00 LALLEY CONSTRUCTION FEB 25-ON-CALL AS-NEEDED REPAIR SERVICES 05/22/2025 108309 $400.00 AUTOLIFT SERVICES INC. ANNUAL COMPRESSOR INSPECTION 05/29/2025 9002168 $966.06 BFS GROUP OF CALIFORNIA LLC CLOSET REBUILD KIT/BATTERY/CRIMP WHEEL 05/22/2025 108305 $84.07 BFS GROUP OF CALIFORNIA LLC WRENCH/SUPPLY LINE/STOP BALL VALVE 05/29/2025 108328 $67.32 HABITAT PROTECTION, INC MAY 25- PEST/RODENT CONTROL-CH 05/29/2025 9002170 $57.00 HABITAT PROTECTION, INC MAY 25- PEST/RODENT CONTROL-DEL MAR SHORE 05/29/2025 9002170 $43.00 HABITAT PROTECTION, INC MAY 25- PEST/RODENT CONTROL - SEASCAPE SUR BEACH
05/29/2025 9002170 $43.00
STANDARD PLUMBING SUPPLY COMPANY COPPER PIPES/COPPER COUPL/FLUX PST/BRUSH 05/29/2025 108345 $92.55 STANDARD PLUMBING SUPPLY COMPANY FAUCET 05/29/2025 108345 $138.16 PRIDE INDUSTRIES APR 25-TRASH ABATEMENT SERVICES 05/22/2025 108311 $1,656.35 HABITAT PROTECTION, INC MAY 25- PEST/RODENT CONTROL-LCCC 05/29/2025 9002170 $71.00 HABITAT PROTECTION, INC MAY 25- PEST/RODENT CONTROL-FS 05/29/2025 9002170 $86.00 HABITAT PROTECTION, INC MAY 25- PEST/RODENT CONTROL-TIDE PARK BEACH 05/29/2025 9002170 $65.00 HABITAT PROTECTION, INC MAY 25- PEST/RODENT CONTROL-FCCC 05/29/2025 9002170 $71.00 HABITAT PROTECTION, INC MAY 25- PEST/RODENT CONTROL-MS 05/29/2025 9002170 $71.00 HABITAT PROTECTION, INC MAY 25-PEST/RODENT CONTROL-FC 05/29/2025 9002170 $43.00 LALLEY CONSTRUCTION MAR 25- ON-CALL AS-NEEDED REPAIR SERVICES 05/22/2025 108309 $560.00 LALLEY CONSTRUCTION MAR 25- ON-CALL AS-NEEDED REPAIR SERVICES 05/22/2025 108309 $720.00 LALLEY CONSTRUCTION MAR 25- ON-CALL AS-NEEDED REPAIR SERVICES 05/22/2025 108309 $520.00 LALLEY CONSTRUCTION APR 25- ON-CALL AS-NEEDED REPAIR SERVICES 05/22/2025 108309 $160.00 24 HOUR ELEVATOR, INC MAY 25- ELEVATOR PREVENTATIVE MAINT/REPAIR 05/29/2025 108318 $204.20 HABITAT PROTECTION, INC MAY 25- PEST/RODENT CONTR-PW 05/29/2025 9002170 $71.00 TOTAL PUBLIC FACILITIES $12,916.24
1007100 - COMMUNITY SERVICES
SAN DIEGO COUNTY BICYCLE COALITION BIKE EDUCATION PROGRAM 05/22/2025 108296 $1,250.00 TOTAL COMMUNITY SERVICES $1,250.00
1007110 - GF-RECREATION
ONE DAY SIGNS PICKLEBALL SIGN 05/22/2025 108310 $37.71
TOTAL GF-RECREATION $37.71
1205460 - SELF INSURANCE RETENTION
DEPROFUNDIS INC ABESTOS INSPECTION/ANALYSIS/LEAD SURVEY 05/22/2025 108317 $1,105.00 TOTAL SELF INSURANCE RETENTION $1,105.00
1255465 - WORKERS COMPENSATION
CORVEL ENTERPRISE COMP INC MAR 25-CLAIMS SERVICES 05/22/2025 108301 $250.00 CORVEL ENTERPRISE COMP INC APR 25- CLAIMS SERVICES 05/22/2025 108301 $250.00 Page: 5 of 6
CORVEL ENTERPRISE COMP INC APR 25- CLAIMS SERVICES 05/22/2025 108301 $1,547.00 CORVEL ENTERPRISE COMP INC JAN 25-CLAIMS SERVICES 05/29/2025 108325 $38.00 TOTAL WORKERS COMPENSATION $2,085.00
135 - EQUIPMENT REPLACEMENT
CONSTRUCTION SOLUTIONS GROUP INC RFND: B24-0615 05/29/2025 108324 $11.36 TOTAL EQUIPMENT REPLACEMENT $11.36
1356120 - ASSET REPLACEMENT-FIRE
US BANK MATTRESS REPLACEMENTS 05/22/2025 108297 $1,048.03 TOTAL ASSET REPLACEMENT-FIRE $1,048.03
1356170 - ASSET REPLACEMENT-MARN SFTY
GEORGE SAPP PWC CART ATV COUPLER/RAIL MODIFICATION 05/29/2025 108320 $1,991.00 TOTAL ASSET REPLACEMENT-MARN SFTY $1,991.00
1605360 - OPEB OBLIGATION
MIDAMERICA JUNE 25 05/29/2025 9002174 $7,935.00
TOTAL OPEB OBLIGATION $7,935.00
2026510 - GAS TAX-ENGINEERING
MICHAEL BAKER INTERNATIONAL, INC APR 25-PROF SVC 05/29/2025 9002173 $2,749.17 TOTAL GAS TAX-ENGINEERING $2,749.17
2037510 - HIGHWAY 101 LANDSC #33
SANTA FE IRRIGATION DISTRICT 005979-004 - 03/18/25-05/15/25 05/29/2025 108344 $770.44 SANTA FE IRRIGATION DISTRICT 007732-000 - 03/18/25-05/15/25 05/29/2025 108344 $217.84 TOTAL HIGHWAY 101 LANDSC #33 $988.28
2117600 - STREET LIGHTING DISTRICT
VERIZON WIRELESS SD 362455526-00001 - 04/02/25-05/01/25 05/22/2025 108316 $15.15 TOTAL STREET LIGHTING DISTRICT $15.15
213 - DEVELOPER PASSTHRU
DAVID ARNOLD RFND: SDP22-023 05/29/2025 108327 $11.00
TOTAL DEVELOPER PASSTHRU $11.00
2135550 - DEVELOPER PASS-THRU- PLANNING
LAURIE LEVINE APR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $218.75 LAURIE LEVINE APR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $218.75 LAURIE LEVINE APR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $175.00 LAURIE LEVINE APR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $218.75 LAURIE LEVINE APR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $437.50 LAURIE LEVINE APR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $218.75 LAURIE LEVINE MAR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $743.75 LAURIE LEVINE MAR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $743.75 LAURIE LEVINE MAR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $656.25 LAURIE LEVINE MAR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $262.50 LAURIE LEVINE MAR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $350.00 LAURIE LEVINE MAR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $175.00 LAURIE LEVINE MAR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $350.00 LAURIE LEVINE MAR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $437.50 LAURIE LEVINE MAR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $262.50 LAURIE LEVINE MAR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $568.75 LAURIE LEVINE APR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $306.25 LAURIE LEVINE APR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $656.25 LAURIE LEVINE APR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $481.25 LAURIE LEVINE APR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $437.50 LAURIE LEVINE MAR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $831.25 Page: 6 of 6
LAURIE LEVINE MAR 25- PLAN REVIEW & INSPECTIONS 05/22/2025 9002161 $306.25 TOTAL DEVELOPER PASS-THRU- PLANNING $9,056.25
2465200 - MISC GRANTS - CM
SOLANA CENTER FOR ENVIRONMENTAL APR 25-SB1383 SERVICES 05/29/2025 9002178 $1,865.64 TOTAL MISC GRANTS - CM $1,865.64
2556180 - JUNIOR LIFEGUARDS
WEST MARINE PRODUCTS, INC. DOCK BOX 05/29/2025 108350 $2,710.68 O5 BNG LLC JR GD UNIFORM TRUNKS 05/22/2025 108312 $780.00 O5 BNG LLC JR GD UNIFORM TRUNKS 05/22/2025 108312 $2,921.00 O5 BNG LLC JR GD-UNIFORM TRUNKS 05/22/2025 108312 $4,112.00 O5 BNG LLC JR GD-UNIFORM TRUNKS 05/22/2025 108312 $340.00 O5 BNG LLC JR GD-UNIFORM TRUNKS 05/22/2025 108312 $7,704.00 TOTAL JUNIOR LIFEGUARDS $18,567.68
2706120 - PUBLIC SAFETY- FIRE
US BANK CSA-17 EMS PATCHES 05/22/2025 108297 $387.00
VERIZON WIRELESS SD 962428212-0001 - 03/29/25-04/28/25 05/22/2025 108316 $159.09 THE COUNSELING TEAM INTERNATIONAL MAY 25-MENTAL WELLNESS SVC - FIRE 05/29/2025 9002180 $468.00 TOTAL PUBLIC SAFETY- FIRE $1,014.09
4506190 - SAND REPLNSHMNT/RETENTION
WARWICK GROUP CONSULTANTS, LLC APR 25- CONSULTING SERVICES 05/29/2025 9002184 $5,833.00 TING FIBER INC. MAY 25- FIBER OPTICS-DEL MAR SHORES LF GRD TWR 05/29/2025 9002182 $464.31 TING FIBER INC. FEB 25-FIBER OPTICS-DEL MAR SHORES LF GRD TWR 05/29/2025 9002182 $450.00 TING FIBER INC. MAY 25-FIBER OPTICS-TIDE BEACH PARK LF GRD TWR 05/29/2025 9002182 $464.31 SUMMIT ENVIROMENTAL GROUP, INC. APR 25-9926 PROF SVC 05/22/2025 9002165 $1,260.00 TOTAL SAND REPLNSHMNT/RETENTION $8,471.62
4506510 - SANDREPLNSHMNT/RETNTN-CIP
UT SAN DIEGO - NRTH COUNTY PUB NTC: BID 2025-05 05/29/2025 108348 $658.78 TOTAL SANDREPLNSHMNT/RETNTN-CIP $658.78
5097700 - SANITATION
MISSION LINEN & UNIFORM INC FY25 UNIFORM SERVICES FOR PUBLIC WORKS 05/29/2025 108339 $10.60 VERIZON WIRELESS SD 362455526-00001 - 04/02/25-05/01/25 05/22/2025 108316 $15.15 RAFTELIS FINANCIAL CONSULTANTS INC APR 25-SEWER RATE & PLAN STUDY 05/29/2025 108343 $2,520.00 TOTAL SANITATION $2,545.75
REPORT TOTAL: $373,590.69
CITY COUNCIL ACTION:
______________________________________________________________________ ______________________________________________________________________ AGENDA ITEM # A.2.

STAFF REPORT

CITY OF SOLANA BEACH
TO: Honorable Mayor and City Councilmembers
FROM: Alyssa Muto, City Manager
MEETING DATE: June 18, 2025
ORIGINATING DEPT: Finance - Rachel Jacobs, Finance Director SUBJECT: City Council Consideration of Resolution 2025-047 Adopting the Fiscal Year 2025/26 City Investment Policy BACKGROUND:

Pursuant to its own terms, the City’s Investment Policy (Policy) must be reviewed and adopted annually by a resolution of the City Council. The terms of the Policy must be in compliance with the California Government Code (Code) Section 53601.

This item is before the City Council to consider Resolution 2025-047 (Attachment 1) adopting the City’s Investment Policy for Fiscal Year (FY) 2025/26.

DISCUSSION:

The investment policy states the goals of the City’s investment activities, the types of investments allowed by Government Code, and the reporting requirements. The ultimate goal is to enhance the economic status of the City while protecting its pooled cash. The City has determined that its investment goals are, in order of priority: Compliance, Safety, Liquidity, and Yield.

The proposed Policy (Attachment 2) is not intended to be comprehensive for all situations, but instead serves as a guideline for the City Treasurer, under the direction of the City Manager, to assist in the adequate safeguarding of the City’s financial assets. The attached Policy conforms to Code Section 53601. The City’s Policy is more restrictive in terms of allowable investments than what is allowed by the Code.

After review by the City Treasurer and the City’s investment advisors, Chandler Asset Management, Staff has incorporated the recommended changes to the Policy from last year. These edits, which can be seen in the Redline Policy (Attachment 3) were made to align the policy more closely with California Government Code (CGC) and industry updates:

June 18, 2025
Adoption of City Investment Policy

Page 2 of 2 ends

• Added Joint Powers Authority (JPA) investments that meet the criteria of CGC Section 53601(p) to the list of authorized investments and glossary. (CAMP is included in the JPA category).
• Updated CDARS language in the authorized investments and glossary to “Placement Service Deposits” to reflect recent industry developments.

Staff believes the investments allowed under the attached Policy are appropriate for the City. The Policy will be included on the City’s website and, therefore, is subject to public review.

CEQA COMPLIANCE STATEMENT:

Not a project as defined by CEQA.

FISCAL IMPACT:

There are no direct fiscal impacts of the Investment Policy adoption itself; however, there are fiscal impacts to the City due to fees associated with investments as well as potential losses/gains based on the performance of the investment accounts.

WORK PLAN:

Although the Investment Policy is not directly included in the Work Plan, it supports and aligns with its objectives. This policy reinforces the City’s emphasis on prudent management of public funds which aligns with our goals under the General Governance and Fiscal Responsibility actions. This policy reinforces the City's commitment to the Environmental Sustainability and Energy Priority, particularly through the Climate Action Plan Update. This update enhances the City’s climate response by promoting green business initiatives and advancing energy efficiency and decarbonization upgrades for City facilities.

OPTIONS:
• Approve Staff recommendation adopting the City’s Investment Policy for FY 2025/26.
• Approve Staff recommendation adopting the City’s Investment Policy for FY 2025/26 with modifications.
• Do not approve and provide further direction to Staff.

June 18, 2025
Adoption of City Investment Policy

Page 2 of 2 ends

CITY STAFF RECOMMENDATION:

Staff recommends that the City Council adopt Resolution 2025-047 (Attachment 1) approving the City’s Investment Policy for FY 2025/26.
_______________________________
Alyssa Muto, City Manager
Attachments:

1. Resolution 2025-047

2. City of Solana Beach Investment Policy FY 2025/26

3. City of Solana Beach Investment Policy FY 2025/26 Redline RESOLUTION 2025-047

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF SOLANA BEACH, CALIFORNIA, APPROVING THE
CITY OF SOLANA BEACH’S INVESTMENT POLICY FOR
FISCAL YEAR 2026
WHEREAS, the Legislature of the State of California has declared that the deposit and investment of public funds by local officials and local agencies is an issue of statewide concern (California Government Code Sections 53600.6 and 53630.1); and WHEREAS, the City Council may invest surplus monies not required for the immediate necessities of the local agency in accordance with the provisions of California Government Code Section 53600 et seq. and this policy; and WHEREAS, the City Treasurer of the City of Solana Beach may invest surplus monies not required for the immediate necessities of the local agency in accordance with the provisions of California Government Code Section 53600 et seq. and this policy; and WHEREAS, the City Treasurer of the City of Solana Beach, under the direction of the City Manager, has prepared and submitted a statement of investment policy and such policy, and any changes thereto, have been considered by the City Council at a public meeting.

NOW, THEREFORE, the City Council of the City of Solana Beach, California, does resolves as follows:

1. That the above recitations are true.

2. That the City Council approves the Investment Policy for Fiscal Year 2026.

PASSED AND ADOPTED this 18th day of June, 2025, at a regularly scheduled meeting of the City Council of the City of Solana Beach, California by the following vote:

CITY OF SOLANA BEACH

STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2025-26

CITY COUNCIL

MAYOR LESA HEEBNER

DEPUTY MAYOR KRISTI BECKER
COUNCILMEMBER DAVID A. ZITO

COUNCILMEMBER JILL MACDONALD

COUNCILMEMBER JEWEL EDSON

CITY MANAGER CITY TREASURER

ALYSSA MUTO RACHEL JACOBS
City of Solana Beach 2025-26 Investment Policy 1

CITY OF SOLANA BEACH
Investment Policy
FISCAL YEAR 2025/26

CONTENTS
I. INTRODUCTION ..................................................................................................... 2 II. OBJECTIVES......................................................................................................... 2 III. SCOPE................................................................................................................. 3 IV. PRUDENCE........................................................................................................... 3 V. DELEGATION OF AUTHORITY.................................................................................. 4 VI. ETHICS AND CONFLICTS OF INTEREST .................................................................... 5 VII. INTERNAL CONTROLS............................................................................................ 5 VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS ........ 5 IX. AUTHORIZED INVESTMENTS ................................................................................... 7 X. PROHIBITED INVESTMENT VEHICLES AND PRACTICES............................................. 13 XI. FOSSIL FUELS RESTRICTION................................................................................ 13 XII. INVESTMENT POOLS/MUTUAL FUNDS ................................................................... 14 XIII. COLLATERALIZATION ........................................................................................... 14 XIV. DELIVERY, SAFEKEEPING AND CUSTODY .............................................................. 15 XV. MAXIMUM MATURITY........................................................................................... 15 XVI. RISK MANAGEMENT AND DIVERSIFICATION............................................................ 15 XVII. REVIEW OF INVESTMENT PORTFOLIO.................................................................... 17 XVIII. PERFORMANCE EVALUATION ............................................................................... 17 XIX. REPORTING........................................................................................................ 17 XX. REVIEW OF INVESTMENT POLICY............................ Error! Bookmark not defined.

APPENDIX A – GLOSSARY OF INVESTMENT TERMS……………………………………………A-1 City of Solana Beach 2025-26 Investment Policy 2
I. INTRODUCTION
The purpose of this document is to outline the City’s policy for the investment of public funds.

It is the policy of the City of Solana Beach, the Solana Beach Public Financing Authority and the Solana Beach Public Facilities Corporation (hereafter referred collectively as the “City”) to predicate their investment policies, procedures and practices upon the limitations placed upon them by the governing legislative bodies. These policies shall have four primary goals:
• To assure compliance with federal, state, and local laws governing the investment of public monies under the control of the City Treasurer. • To protect the principal monies entrusted to the City. • To provide sufficient liquidity to meet normal operating and unexpected expenditures.
• To generate the maximum amount of investment income within the parameters of prudent risk management as defined in this Investment Policy.

This policy is written to incorporate industry best practices and recommendations from sources such as the Government Finance Officers Association (GFOA), California Municipal Treasurers Association (CMTA), California Debt and Investment Advisory Commission (CDIAC) and the Association of Public Treasurers (APT).

II. OBJECTIVES
The City’s overall investment program shall be designed and managed with a degree of professionalism worthy of the public trust. The overriding objectives of the program, after compliance with laws governing the City’s investment, are to preserve principal, provide sufficient liquidity, and manage investment risks, while seeking a market-rate of return.
• SAFETY. The protection of principal is the foremost objective of the investment program. Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities with independent returns.
• LIQUIDITY. The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.

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• RETURN ON INVESTMENTS. The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints for safety and liquidity needs.

III. SCOPE
This policy covers all funds and investment activities under the direct authority of the City, as set forth in the State Government Code, Sections 53600 et seq., with the following exceptions:
• Proceeds of debt issuance shall be invested in accordance with the City’s general investment philosophy as set forth in this policy; however, such proceeds are to be invested pursuant to the permitted investment provisions of their specific bond indentures.
• Any other funds specifically exempted by the City Council.

Funds not included in the policy include the City’s deferred compensation plans (Plans). These Plans will be excluded from the policy under the following circumstances:
i. A third-party administrator administers the plan
ii. Individual plan participants have control over the selection of investments
iii. The City has no fiduciary responsibility to act as a “trustee” for the Plan.

POOLING OF FUNDS
Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.

IV. PRUDENCE
Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public City of Solana Beach 2025-26 Investment Policy 4
funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”
V. DELEGATION OF AUTHORITY
The Treasurer and other authorized persons responsible for managing City funds acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes provided that the Treasurer or other authorized persons acted in good faith. Deviations from expectations of a security’s credit or market risk should be reported to the City Council in a timely fashion and appropriate action should be taken to control adverse developments.

Authority to manage the City’s investment program is derived from California Government Code, Sections 41006 and 53600 et seq.

The City Council is responsible for the management of the City’s funds, including the administration of this investment policy. Management responsibility for the cash management of the City’s funds is hereby delegated to the Treasurer.

The Treasurer will be responsible for all transactions undertaken and will establish a system of procedures and controls to regulate the activities of subordinate officials and employees. Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Treasurer.

The City may engage the services of one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.

If the City Treasurer is unavailable, then the Senior Accountant, Assistant City Manager, or the City Manager shall authorize the investment transactions, in writing, prior to execution.

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The City's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that in a diversified portfolio, occasional measured losses may be inevitable and must be considered within the context of the overall portfolio’s return and the cash flow requirements of the City.

VI. ETHICS AND CONFLICTS OF INTEREST
All participants in the investment process shall act as custodians of the public trust.

Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. Thus, employees and officials involved in the investment process shall refrain from personal business activity that could create a conflict of interest or the appearance of a conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

Employees and investment officials shall disclose to the City Manager any material interests in financial institutions with which they conduct business, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the investment portfolio. With regard to the City Manager, the same shall apply and shall be disclosed to the City Treasurer.

VII. INTERNAL CONTROLS
The Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

Periodically, as deemed appropriate by the City and/or the City Council, an independent analysis by an external auditor shall be conducted to review internal controls, account activity and compliance with policies and procedures.

VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS To the extent practicable, the Treasurer shall endeavor to complete investment transactions using a competitive bid process whenever possible. The City’s Treasurer will determine which financial institutions are authorized to provide investment services to the City. It shall be the City’s policy to purchase securities only from authorized institutions and firms.

The Treasurer shall maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence as determined by City of Solana Beach 2025-26 Investment Policy 6
the City. Due inquiry shall determine whether such authorized broker/dealers, and the individuals covering the City are reputable and trustworthy, knowledgeable and experienced in Public City investing and able to meet all of their financial obligations. These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).

In accordance with Section 53601.5, institutions eligible to transact investment business with the City include:
• Institutions licensed by the state as a broker-dealer. • Institutions that are members of a federally regulated securities exchange. • Primary government dealers as designated by the Federal Reserve Bank and non-primary government dealers.
• Nationally or state-chartered banks.
• The Federal Reserve Bank.
• Direct issuers of securities eligible for purchase.

Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the City, except where the City utilizes an external investment adviser in which case the City may rely on the adviser for selection.

All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Treasurer with audited financials and a statement certifying that the institution has reviewed the California Government Code, Section 53600 et seq. and the City’s investment policy. The Treasurer will conduct an annual review of the financial condition and registrations of such qualified bidders.

Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.

Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no City of Solana Beach 2025-26 Investment Policy 7
competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

IX. AUTHORIZED INVESTMENTS
The City’s investments are governed by California Government Code, Sections 53600 et seq. Within the investments permitted by the Code, the City seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this policy and the Code, the more restrictive parameters will take precedence. Percentage holding limits and credit quality minimums listed in this section apply at the time the security is purchased.

Any investment currently held at the time the policy is adopted which does not meet the new policy guidelines can be held until maturity and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy.

An appropriate risk level shall be maintained by primarily purchasing securities that are of high quality, liquid, and marketable. The portfolio shall be diversified by security type and institution to avoid incurring unreasonable and avoidable risks regarding specific security types or individual issuers.

1. MUNICIPAL SECURITIES include obligations of the City, the State of California, and any local agency within the State of California, provided that:
• The securities are rated in a rating category of “A” or its equivalent or higher by at least one nationally recognized statistical rating organization (“NRSRO”).
• No more than 5% of the total portfolio may be invested in any single issuer. • No more than 30% of the total portfolio may be in Municipal Securities. • The maximum maturity does not exceed five (5) years.

2. MUNICIPAL SECURITIES (REGISTERED TREASURY NOTES OR BONDS) of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
• The securities are rated in a rating category of “A” or its equivalent or higher by at least one nationally recognized statistical rating organization (“NRSRO”).
• No more than 5% of the total portfolio may be invested in any single issuer. • No more than 30% of the total portfolio may be in Municipal Securities. • The maximum maturity does not exceed five (5) years.

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3. U.S. TREASURIES and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest.

There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries, provided that:
• The maximum maturity is five (5) years.

4. FEDERAL AGENCIES or United States Government-Sponsored Enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in Federal City or GovernmentSponsored Enterprises (GSEs), provided that:
• No more than 30% of the total portfolio may be invested in any single City/GSE issuer.
• The maximum maturity does not exceed five (5) years.
• The maximum percentage of callable agencies in the total portfolio is 20%.

5. BANKER’S ACCEPTANCES, provided that:
• They are issued by institutions which have short-term debt obligations rated “A-1” or the equivalent or higher by at least one NRSRO; or long-term debt obligations which are rated in the “A” category or the equivalent or higher by at least one NRSRO.
• No more than 40% of the total portfolio may be invested in Banker’s Acceptances.
• No more than 5% of the total portfolio may be invested in any single issuer. • The maximum maturity does not exceed 180 days.

6. COMMERCIAL PAPER, provided that the securities are issued by an entity that meets all of the following conditions in either paragraph (a) or (b) and other requirements specified below:
a. SECURITIES issued by corporations:
(i) The issuer is organized and operating in the United States with assets more than $500 million.
(ii) The securities are rated “A-1” or its equivalent or higher by at least one NRSRO.
(iii) If the issuer has other debt obligations, they must be rated in a rating category of “A” or its equivalent or higher by at least one NRSRO.

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b. SECURITIES issued by other entities:
(i) The issuer is organized and operating in the United States as a special purpose corporation, trust, or limited liability company. (ii) The securities must have program-wide credit enhancement including, but not limited to, overcollateralization, letters of credit, or a surety bond.
(iii) The securities are rated “A-1” or its equivalent or higher by at least one NRSRO.
• City may purchase no more than 10% of the outstanding commercial paper of any single issuer.
• No more than 25% of the total portfolio may be invested in Commercial Paper.
• No more than 5% of the total portfolio may be invested in any single issuer. • The maximum maturity does not exceed 270 days.

7. NEGOTIABLE CERTIFICATES OF DEPOSIT (NCDS), issued by a nationally or statechartered bank, a savings association, or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that:
• The amount of the NCD insured up to the FDIC limit does not require any credit ratings.
• Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated “A-1” or the equivalent or higher by at least one NRSRO; or long-term obligations rated in the “A” category or the equivalent or higher by at least one NRSRO. • No more than 30% of the total portfolio may be invested in NCDs (combined with CDARS).
• No more than 5% of the total portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

City of Solana Beach 2025-26 Investment Policy 10
• No more than 20% of the total portfolio will be invested in a combination of federally insured and collateralized time deposits.
• The maximum maturity does not exceed five (5) years.

9. COLLATERALIZED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in accordance with California law, provided that:
• No more than 20% of the total portfolio will be invested in a combination of federally insured and collateralized time deposits.
• The maximum maturity does not exceed five (5) years.

10.PLACEMENT SERVICE DEPOSITS, provided that:
• No more than 30% of the total portfolio may be invested in a combination of qualifying placement service deposits.
• The full amount of each deposit along with accrued interest must at all times be insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).
• Under a provision sunsetting on January 1, 2031, no more than 50% of the portfolio may be invested in deposits through a placement service, including Certificates of Deposit, if the Agency is a city, district or local agency that does not pool money with other local agencies.
• The maximum maturity does not exceed five (5) years.

11.COLLATERALIZED BANK DEPOSITS. City’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651.

12.REPURCHASE AGREEMENTS collateralized with securities authorized under California Government Code, maintained at a level of at least 102% of the market value of the Repurchase Agreement. There are no limits on the dollar amount or percentage that the City may invest, provided that:
• Securities used as collateral for Repurchase Agreements will be delivered to an acceptable third party custodian.
• Repurchase Agreements are subject to a Master Repurchase Agreement between the City and the provider of the repurchase agreement. The Master Repurchase Agreement will be substantially in the form developed by the Securities Industry and Financial Markets Association (SIFMA).

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• The maximum maturity does not exceed one (1) year.

13.STATE OF CALIFORNIA LOCAL CITY INVESTMENT FUND (LAIF), provided that:
• The City may invest up to the maximum amount permitted by LAIF. • LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude the investment in LAIF itself from the City’s list of allowable investments, provided LAIF’s reports allow the Treasurer to adequately judge the risk inherent in LAIF’s portfolio.

14.SHARES OF BENEFICIAL INTEREST ISSUED BY A JOINT POWERS AUTHORITY (JPA), provided that:
• The JPA is organized pursuant to California Government Code Section 6509.7 and invests in the securities and obligations authorized in subdivisions (a) to (r), inclusive.
• Each share shall represent an equal proportional interest in the underlying pool of securities owned by the JPA.
• The JPA has retained an investment advisor who is registered with the SEC (or exempt from registration), has assets under management in excess of $500 million, and has at least five years’ experience investing in instruments authorized by Section 53601, subdivisions (a) to (q).

15.CORPORATE MEDIUM TERM NOTES (MTNS), provided that:
• The issuer is a corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.
• The securities are rated in the “A” category or the equivalent or higher by at least one NRSRO.
• No more than 30% of the total portfolio may be invested in MTNs. • No more than 5% of the total portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

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• The securities are rated in the “AA” category or the equivalent or higher by a NRSRO.
• No more than 20% of the total portfolio may be invested in these securities. • No more than 5% of the total portfolio may be invested in any single AssetBacked or Commercial Mortgage security issuer. There is no issuer limitation on any Mortgage security where the issuer is the US Treasury or a Federal City/GSE.
• The maximum maturity does not exceed five (5) years.

17.MUTUAL FUNDS AND MONEY MARKET MUTUAL FUNDS that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:
a. MUTUAL FUNDS that invest in the securities and obligations as authorized under California Government Code, Section 53601 (a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:

1. Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or

2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million.

3. No more than 10% of the total portfolio may be invested in shares of any one mutual fund.
b. MONEY MARKET MUTUAL FUNDS registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:

1. Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or

2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.

3. No more than 20% of the total portfolio may be invested in the shares of any one Money Market Mutual Fund.
c. No more than 20% of the total portfolio may be invested in these securities.

18.SUPRANATIONALS, provided that:
• Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank City of Solana Beach 2025-26 Investment Policy 13
for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank.
• The securities are rated in the “AA” category or the equivalent or higher by a NRSRO.
• No more than 30% of the total portfolio may be invested in these securities. • No more than 10% of the total portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

X. PROHIBITED INVESTMENT VEHICLES AND PRACTICES
• State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. • In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. • Investment in any security that could result in a zero-interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted. The presence of any of these securities will be promptly reported to the Treasurer. • Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
• Purchasing or selling securities on margin is prohibited. • The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.
• The purchase of foreign currency denominated securities is prohibited. • The purchase of a security with a forward settlement exceeding 45 days from the time of the investment is prohibited.

XI. FOSSIL FUELS RESTRICTION
• The purchase of securities issued by fossil fuel companies that directly source the majority (more than 50%) of their revenue from oil, gas and/or coal production is prohibited.

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XII. INVESTMENT POOLS/MUTUAL FUNDS
The City shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. The Treasurer shall develop a questionnaire which will answer the following general questions:

1. A description of eligible investment securities, and a written statement of investment policy and objectives.

2. A description of interest calculations and how it is distributed, and how gains and losses are treated.

3. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.

4. A description of who may invest in the program, how often, and what size deposit and withdrawal are allowed.

5. A schedule for receiving statements and portfolio listings.

6. Are reserves, retained earnings, etc. utilized by the pool/fund?

7. A fee schedule, and when and how is it assessed.

8. Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? XIII. COLLATERALIZATION
CERTIFICATES OF DEPOSIT (CDS). The City shall require any commercial bank or savings and loan association to deposit eligible securities with a City of a depository approved by the State Banking Department to secure any uninsured portion of a Non-Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

COLLATERALIZATION OF BANK DEPOSITS. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The City shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.

REPURCHASE AGREEMENTS. The City requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code:

City of Solana Beach 2025-26 Investment Policy 15
• The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities. • Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above.
• The City shall receive monthly statements of collateral.

XIV. DELIVERY, SAFEKEEPING AND CUSTODY
DELIVERY-VERSUS-PAYMENT (DVP). All investment transactions shall be conducted on a delivery-versus-payment basis.

SAFEKEEPING AND CUSTODY. To protect against potential losses due to failure of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all cash and securities in the City’s portfolio shall be held in safekeeping in the City’s name by a third-party custodian, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. All investment transactions will require a safekeeping receipt or acknowledgment generated from the trade. A monthly report will be received by the City from the custodian listing all securities held in safekeeping with current market data and other information.

The only exceptions to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and, (iii) money mutual funds, since the purchased securities are not deliverable.

XV. MAXIMUM MATURITY
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities.

The City will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment.

XVI. RISK MANAGEMENT AND DIVERSIFICATION

MITIGATING CREDIT RISK IN THE PORTFOLIO
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Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
• The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio. • No more than 5% of the total portfolio may be invested in securities of any single issuer, except where the issuer is the US Government, its Agencies and GSEs, an authorized Supranational issuer or where the security is a Money Market Mutual Fund, Local City Investment Fund (LAIF) or other Local Government Investment Pool, or where otherwise specified in this investment policy.
• The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences. • If securities owned by the City are downgraded to a level below the quality required by this investment policy, making the security ineligible for additional purchases, the following steps will be taken:
• Any actions taken related to the downgrade by an investment manager will be promptly communicated to the Treasurer.
• If a decision is made to retain the security in the portfolio, the credit situation will be monitored and reported promptly to the City Council.

MITIGATING MARKET RISK IN THE PORTFOLIO
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longerterm portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes.

The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:
• The City will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements.

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• The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy. • The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.

XVII. REVIEW OF INVESTMENT PORTFOLIO
The Treasurer shall periodically, but no less than quarterly, review the portfolio to identify investments that do not comply with this investment policy and establish protocols for reporting major and critical incidences of noncompliance to the City Council.

XVIII. PERFORMANCE EVALUATION
The investment portfolio shall be designed to attain a market-average rate of return throughout budgetary and economic cycles, considering the City’s risk constraints, the cash flow characteristics of the portfolio, and state and local laws, ordinances or resolutions that restrict investments.

The Treasurer shall monitor and evaluate the portfolio’s performance relative to the chosen market benchmark(s), which will be included in the Treasurer’s quarterly report. The Treasurer shall select an appropriate, readily available index to use as a market benchmark.

XIX. REPORTING

MONTHLY REPORTS
Monthly transaction reports will be submitted by the Treasurer to the City Council within 30 days of the end of the reporting period in accordance with California Government Code Section 53607.

QUARTERLY REPORTS
The Treasurer will submit a quarterly investment report to the City Council which provides full disclosure of the City’s investment activities within 45 days after the end of the quarter per Government Code Section 53646(b)(1). These reports will disclose, at a minimum, the following information about the City’s portfolio:

1. An asset listing showing par value, cost, and independent third-party fair market value of each security as of the date of the report, the source of the valuation, type of investment, issuer, maturity date, interest rate and interest rate.

2. Transactions for the period.

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3. A description of the funds, investments and programs (including lending programs) managed by contracted parties (i.e. LAIF; investment pools, outside money managers and securities lending agents)

4. A one-page summary report that shows:
a. Average maturity of the portfolio and modified duration of the portfolio; b. Maturity distribution of the portfolio;
c. Percentage of the portfolio represented by each investment category; d. Average portfolio credit quality; and,
e. Time-weighted total rate of return for the portfolio for the prior one month, three months, twelve months and since inception compared to the City’s market benchmark returns for the same periods;

5. A statement of compliance with investment policy, including a schedule of any transactions or holdings which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio and a timetable for resolution.

6. A statement that the City has adequate funds to meet its cash flow requirements for the next six months.

ANNUAL REPORTS
A comprehensive annual report will be presented to the City Council. This report will include comparisons of the City’s return to the market benchmark return, suggest policies and improvements that might enhance the investment program, and will include an investment plan for the coming year.

XX. REVIEW OF INVESTMENT POLICY
The investment policy will be reviewed and adopted at least annually within 120 days of the end of the fiscal year, to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends. Any recommended modifications or amendments shall be presented by Staff to the City Council for their consideration and adoption.

City of Solana Beach 2025-26 Investment Policy Appendix A-1 Appendix A
Glossary of Investment Terms
AGENCIES. Shorthand market terminology for any obligation issued by a governmentsponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:

FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds.

FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “Freddie Mac” issues discount notes, bonds and mortgage pass-through securities.

FNMA. Like FHLB and Freddie Mac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “Fannie Mae,” issues discount notes, bonds and mortgage passthrough securities.

GNMA. The Government National Mortgage Association, known as “Ginnie Mae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.

PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.

TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds.

ASKED. The price at which a seller offers to sell a security.

ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

AVERAGE LIFE. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.

BANKER’S ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.

City of Solana Beach 2025-26 Investment Policy Appendix A-2 BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

BID. The price at which a buyer offers to buy a security.

BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from their own position.

CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline since an issuer issues securities, it will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment risk as the investor may receive its principal back when interest rates are lower than when the investment was initially made.

CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable.

COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

COMMERCIAL PAPER. The short-term unsecured debt of corporations.

COST YIELD. The annual income from an investment divided by the purchase cost.

Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return.

COUPON. The rate of return at which interest is paid on a bond.

CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

CURRENT YIELD. The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.

DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for their own position.

City of Solana Beach 2025-26 Investment Policy Appendix A-3 DEBENTURE. A bond secured only by the general credit of the issuer.

DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.

DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index.

DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.

DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration).

FEDERAL FUNDS RATE. The rate of interest charged by banks for short-term loans to other banks. The Federal Reserve Bank through open-market operations establishes it.

FEDERAL OPEN MARKET COMMITTEE. A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves.

JOINT POWERS AUTHORITY (JPA). An entity created by two or more public agencies that share a common goal in order to jointly exercise powers common to all members through a joint powers agreement or contract.

LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

LIQUIDITY. The speed and ease with which an asset can be converted to cash.

LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.

City of Solana Beach 2025-26 Investment Policy Appendix A-4 LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.

MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole."
MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral.

MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

MARKET VALUE. The price at which a security can be traded.

MARKING TO MARKET. The process of posting current market values for securities in a portfolio.

MATURITY. The final date upon which the principal of a security becomes due and payable.

An investment’s term or remaining maturity is measured from the settlement date to final maturity.

MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.

MODIFIED DURATION. The percent change in price for a 100-basis point change in yields.

Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.

MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses.

MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, City of Solana Beach 2025-26 Investment Policy Appendix A-5 and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

NEGOTIABLE CD. A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market.

PLACEMENT SERVICE DEPOSITS. A private service that allows local agencies to invest in FDIC-insured deposits with one or more banks, savings and loans, and credit unions located in the United States. IntraFi (formerly known as CDARS) is an example of an entity that provides this service.

PREMIUM. The difference between the par value of a bond and the cost of the bond, when the cost is above par.

PREPAYMENT SPEED. A measure of how quickly principal is repaid to investors in mortgage securities.

PREPAYMENT WINDOW. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed.

PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Government securities market.

PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.”
REALIZED YIELD. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio.

REGIONAL DEALER. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer.

REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.

City of Solana Beach 2025-26 Investment Policy Appendix A-6 SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name.

STRUCTURED NOTE. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities, or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate.

Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.

SUPRANATIONAL. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.

U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.

TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.

TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.

TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.

VOLATILITY. The rate at which security prices change with changes in general economic conditions or the general level of interest rates.

YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.

CITY OF SOLANA BEACH

STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 202524-262&

CITY COUNCIL

MAYOR LESA HEEBNER

DEPUTY MAYOR KRISTI BECKER JE'J'/EL EDSON

COUNCILMEMBER KRISTI BECKER
COUNCILMEMBER DAVID A. ZITO

COUNCILMEMBER JILL MACDONALD

COUNCILMEMBER JEWEL EDSON

CITY MANAGER

ALYSSA MUTO

CITY TREASURER

RACHEL JACOBS

CITY OF SOLANA BEACH
Investment Policy
FISCAL YEAR 202524/262-S

CONTENTS
I. INTRODUCTION .... ; ................................................................................................ 2 II. OBJECTIVES ......................................................................................................... 2 Ill. SCOPE ................................................................................................................. 3 IV. PRUDENCE ........................................................................................................... 3 V. DELEGATION OF AUTHORITY .................................................................................. 4 VI. ETHICS AND CONFLICTS OF INTEREST .................................................................... 5 VI I. INTERNAL CONTROLS ............................................................................................ 5 VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS ........ 5 IX. AUTHORIZED INVESTMENTS ................................................................................... 7 X. PROHIBITED INVESTMENT VEHICLES AND PRACTICES ......................................... ~+a XI. FOSSIL FUELS RESTRICTION ............................................................................ H.:t-a XII. INVESTMENT POOLS/MUTUAL FUNDS ............................................................. .11~ XIII. COLLATERALIZATION ....................................................................................... .11+4 XIV. DELIVERY, SAFEKEEPING AND CUSTODY .......................................................... ~+e xv. MAXIMUM MATURITY ....................................................................................... 1.§_+5 XVI. RISK MANAGEMENT AND DIVERSIFICATION .. ... ................ ................ ................... 1.§_+5 XVII. REVIEW OF INVESTMENT PORTFOLI0 ................................................................ 1Z+7 XVIII. PERFORMANCE EVALUATION ........................................................................... 17+7 XIX. REPORTING ........................................................................................................ 17 XX. REVIEW OF INVESTMENT POLICY ...................................................................... 204--8 APPENDIX A-GLOSSARY OF INVESTMENT TERMS ............................................. ...... A-1 City of Solana Beach 202524-262-§ Investment Policy
I. INTRODUCTION
The purpose of this document is to outline the City's policy for the investment of public funds.

It is the policy of the City of Solana Beach, the Solana Beach Public Financing Authority and the Solana Beach Public Facilities Corporation (hereafter referred collectively as the "City") to predicate their investment policies, procedures and practices upon the limitations placed upon them by the governing legislative bodies. These policies shall have four primary goals:
_• _ To assure compliance with federal, state, and local laws governing the investment of public monies under the control of the City Treasurer. • To protect the principal monies entrusted to the City. • To provide sufficient liquidity to meet normal operating and unexpected expenditures.
• To protect the principal monies entrusted to the City. • To generate the maximum amount of investment income within the parameters of prudent risk management as defined in this Investment Policy.

II. OBJECTIVES
2 The City's overall investment program shall be designed and managed with a degree of professionalism worthy of the public trust. The overriding objectives of the program. after compliance with laws governing the City's investment, are to preserve principal, provide sufficient liquidity, and manage investment risks, while seeking a market-rate of return.
• SAFETY. The protection of principal is the foremost objective of the investment program. Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities with independent returns.
• LIQUIDITY. The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.

City of Solana Beach 202524-262& Investment Policy
• RETURN ON INVESTMENTS. The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints for safety and liquidity needs.

Ill. SCOPE
This policy covers all funds and investment activities under the direct authority of the City, as set forth in the State Government Code, Sections 53600 et seq., with the following exceptions:
• Proceeds of debt issuance shall be invested in accordance with the City's general investment philosophy as set forth in this policy; however, such proceeds are to be invested pursuant to the permitted investment provisions of their specific bond indentures.
• Any other funds specifically exempted by the City Council.

Funds not included in the policy include the City's deferred compensation plans (Plans). These Plans will be excluded from the policy under the following circumstances:
i. A third-party administrator administers the plan
ii. Individual plan participants have control over the selection of investments
iii. The City has no fiduciary responsibility to act as a "trustee" for the Plan.

IV. PRUDENCE
3 Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard:

City of Solana Beach 202524-262& Investment Policy
" ... all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law."
V. DELEGATION OF AUTHORITY
4 The Treasurer and other authorized persons responsible for managing City funds acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes provided that the Treasurer or other authorized persons acted in good faith. Deviations from expectations of a security's credit or market risk should be reported to the City Council in a timely fashion and appropriate action should be taken to control adverse developments.

Authority to manage the City's investment program is derived from California Government Code, Sections 41006 and 53600 et seq.

The City Council is responsible for the management of the City's funds, including the administration of this investment policy. Management responsibility for the cash management of the City's funds is hereby delegated to the Treasurer.

The City may engage the services of one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of the City's investment portfolio in a manner consistent with the City's objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.

If the City Treasurer is unavailable, then the Senior AccountantFinance Manager, Deputy Assistant City Manager, or the City Manager shall authorize the investment transactions, in writing, prior to execution.

City of Solana Beach 202524-262-e Investment Policy
The City's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that in a diversified portfolio, occasional measured losses may be inevitable and must be considered within the context of the overall portfolio's return and the cash flow requirements of the City.

VI. ETHICS AND CONFLICTS OF INTEREST
All participants in the investment process shall act as custodians of the public trust.

Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. ThusJ. employees and officials involved in the investment process shall refrain from personal business activity that could create a conflict of interest or the appearance of a conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

Employees and officers shall refrain from undertaking any personal investment transactions with the same individual with whom business is conducted on behalf of the City.

VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS 5 To the extent practicable, the Treasurer shall endeavor to complete investment transactions using a competitive bid process whenever possible. The City's Treasurer will determine which financial institutions are authorized to provide investment services to the City. It shall be the City's policy to purchase securities only from authorized institutions and firms.

City of Solana Beach 202524-262§ Investment Policy
6 The Treasurer shall maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence as determined by the City. Due inquiry shall determine whether such authorized broker/dealers, and the individuals covering the City are reputable and trustworthy, knowledgeable and experienced in Public City investing and able to meet all of their financial obligations. These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).

All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Treasurer with audited financials and a statement certifying that the institution has reviewed the California Government Code, Section 53600 et seq. and the City's investment policy. The Treasurer will conduct an annual review of the financial condition and registrations of such qualified bidders.

Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering City of Solana Beach 202524-2626 Investment Policy
prices shall be recorded. If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

IX. AUTHORIZED INVESTMENTS
7 The City's investments are governed by California Government Code, Sections 53600 et seq. Within the investments permitted by the Code, the City seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this policy and the Code, the more restrictive parameters will take precedence. Percentage holding limits and credit quality minimums listed in this section apply at the time the security is purchased.

Any investment currently held at the time the policy is adopted which does not meet the new policy guidelines can be held until maturity and shall be exempt from the current policy. At the time of the investment's maturity or liquidation, such funds shall be reinvested only as provided in the current policy.

1. MUNICIPAL SECURITIES include obligations of the City, the State of California, and any local agency within the State of California, provided that:
• The securities are rated in a rating category of "A" or its equivalent or higher by at least one nationally recognized statistical rating organization ("NRSRO").
• No more than 5% of the total portfolio may be invested in any single issuer. • No more than 30% of the total portfolio may be in Municipal Securities. • The maximum maturity does not exceed five (5) years.

City of Solana Beach 202524-262& Investment Policy
8 • The securities are rated in a rating category of "A" or its equivalent or higher by at least one nationally recognized statistical rating organization ("NRSRO").
• No more than 5% of the total portfolio may be invested in any single issuer. • No more than 30% of the total portfolio may be in Municipal Securities. • The maximum maturity does not exceed five (5) years.

3. U.S. TREASURIES and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest.

There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries, provided that:
• The maximum maturity is five (5) years.

5. BANKER'S ACCEPTANCES, provided that:
• They are issued by institutions which have short-term debt obligations rated "A-1" or the equivalent or higher by at least one NRSRO; or long-term debt obligations which are rated in the "A" category or the equivalent or higher by at least one N RS RO.
• No more than 40% of the total portfolio may be invested in Banker's Acceptances.
• No more than 5% of the total portfolio may be invested in any single issuer. • The maximum maturity does not exceed 180 days.

City of Solana Beach 202524-262§ Investment Policy
9 (i) The issuer is organized and operating in the United States with assets more than $500 million.
(ii) The securities are rated "A-1" or its equivalent or higher by at least one NRSRO.
(iii) If the issuer has other debt obligations, they must be rated in a rating category of "A" or its equivalent or higher by at least one NRSRO. b. SECURITIES issued by other entities:
(i) The issuer is organized and operating in the United States as a special purpose corporation, trust, or limited liability company. (ii) The securities must have program-wide credit enhancement including, but not limited to, overcollateralization, letters of credit, or a surety bond.
(iii) The securities are rated "A-1" or its equivalent or higher by at least one NRSRO.
• City may purchase no more than 10% of the outstanding commercial paper of any single issuer.
• No more than 25% of the total portfolio may be invested in Commercial Paper.
• No more than 5% of the total portfolio may be invested in any single issuer. • The maximum maturity does not exceed 270 days.

7. NEGOTIABLE CERTIFICATES OF DEPOSIT (NCDs), issued by a nationally or statechartered bank, a savings association, or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that:
• The amount of the NCO insured up to the FDIC limit does not require any credit ratings.
• Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated "A-1" or the equivalent or higher by at least one NRSRO; or long-term obligations rated in the "A" category or the equivalent or higher by at least one NRSRO. • No more than 30% of the total portfolio may be invested in NCDs (combined with CDARS).
• No more than 5% of the total portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

City of Solana Beach 202524-262& Investment Policy

8. FEDERALLY INSURED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:
• The amount per institution is limited to the maximum covered under federal insurance.
• No more than 20% of the total portfolio will be invested in a combination of federally insured and collateralized time deposits.
• The maximum maturity does not exceed five (5) years.

10. CERTIFICATE OF DEPOSIT PLACEMENT SERVICE DEPOSITS (CDARS), provided that:
_• _ No more than 30% of the total portfolio may be invested in a combination of Certificates of Deposit, including GDARSqualifying placement service deposits.
• The full amount of each deposit along with accrued interest must at all times be insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).
• Under a provision sunsetting on January 1, 2031, no more than 50% of the portfolio may be invested in deposits through a placement service, including Certificates of Deposit, if the Agency is a city, district or local agency that does not pool money with other local agencies.
• The maximum maturity does not exceed five (5) years.

11. COLLATERALIZED BANK DEPOSITS. City's deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651 .

City of Solana Beach 202524-262& Investment Policy
10 • Securities used as collateral for Repurchase Agreements will be delivered to an acceptable third party custodian.
• Repurchase Agreements are subject to a Master Repurchase Agreement between the City and the provider of the repurchase agreement. The Master Repurchase Agreement will be substantially in the form developed by the Securities Industry and Financial Markets Association (SIFMA). • The maximum maturity does not exceed one (1) year.

13.STATE OF CALIFORNIA LOCAL CITY INVESTMENT FUND (LAIF), provided that:
• The City may invest up to the maximum amount permitted by LAIF. • LAI F's investments in instruments prohibited by or not specified in the City's policy do not exclude the investment in LAIF itself from the City's list of allowable investments, provided LAIF's reports allow the Treasurer to adequately judge the risk inherent in LAIF's portfolio.

14. INVESTMENT TRUST OF CALIFORNIA (CALTRUST), \Vhich is a joint powers authority (JPA), organized and managed by the Investment Trust of California JPA for the benefit of local agencies, pursuant to California Government Code Section 6509.7

14.SHARES OF BENEFICIAL INTEREST ISSUED BY A JOINT POWERS AUTHORITY (JPA), provided that:
• The JPA is organized pursuant to California Government Code Section 6509.7 and invests in the securities and obligations authorized in subdivisions (a) to (r), inclusive.
• Each share shall represent an equal proportional interest in the underlying pool of securities owned by the JPA.
• The JPA has retained an investment advisor who is registered with the SEC (or exempt from registration), has assets under management in excess of $500 million, and has at least five years' experience investing in instruments authorized by Section 53601, subdivisions (a) to (q).

15. CORPORATE MEDIUM TERM NOTES (MTNs), provided that:
• The issuer is a corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.
• The securities are rated in the "A" category or the equivalent or higher by at least one NRSRO.
• No more than 30% of the total portfolio may be invested in MTNs.

City of Solana Beach 202524-2628 Investment Policy
11 • No more than 5% of the total portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

16. ASSET-BACKED, MORTGAGE-BACKED, MORTGAGE PASS-THROUGH SECURITIES, AND COLLATERALIZED MORTGAGE OBLIGATIONS from issuers not defined in sections 3 and 4 of the Authorized investments section of this policy, provided that:
• The securities are rated in the "AA" category or the equivalent or higher by a NRSRO.
• No more than 20% of the total portfolio may be invested in these securities. • No more than 5% of the total portfolio may be invested in any single AssetBacked or Commercial Mortgage security issuer. There is no issuer limitation on any Mortgage security where the issuer is the US Treasury or a Federal City/GSE.
• The maximum legal final maturity does not exceed five (5) years.

17. MUTUAL FUNDS AND MONEY MARKET MUTUAL FUNDS that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:
a. MUTUAL FUNDS that invest in the securities and obligations as authorized under California Government Code, Section 53601 (a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:

1. Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or

2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million.

1. Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or

2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less City of Solana Beach 202524-262-e Investment Policy
12 than five years' experience managing money market mutual funds with assets under management in excess of $500 million.

3. No more than 20% of the total portfolio may be invested in the shares of any one Money Market Mutual Fund.
c. No more than 20% of the total portfolio may be invested in these securities.

18. SUPRANATIONAL$, provided that:
• Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank.
• The securities are rated in the "AA" category or the equivalent or higher by a NRSRO.
• No more than 30% of the total portfolio may be invested in these securities. • No more than 10% of the total portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

City of Solana Beach 202524-262-§ Investment Policy
13 • The purchase of a security with a forward settlement exceeding 45 days from the time of the investment is prohibited.

XII. INVESTMENT POOLS/MUTUAL FUNDS
The City shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. The Treasurer shall develop a questionnaire which will answer the following general questions:

1. A description of eligible investment securities, and a written statement of investment policy and objectives.

2. A description of interest calculations and how it is distributed, and how gains and losses are treated.

3. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.

4. A description of who may invest in the program, how often, and what size deposit and withdrawal are allowed.

5. A schedule for receiving statements and portfolio listings.

6. Are reserves, retained earnings, etc. utilized by the pool/fund?

7. A fee schedule, and when and how is it assessed.

8. Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? XIII. COLLATERALIZATION
CERTIFICATES OF DEPOSIT (CDs). The City shall require any commercial bank or savings and loan association to deposit eligible securities with aA- City of a depository approved by the State Banking Department to secure any uninsured portion of a Non-Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged City of Solana Beach 202524-262& Investment Policy
14 against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

REPURCHASE AGREEMENTS. The City requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code:
• The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities. • Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above.
• The City shall receive monthly statements of collateral.

XIV. DELIVERY, SAFEKEEPING AND CUSTODY
DELIVERY-VERSUS-PAYMENT (DVP). All investment transactions shall be conducted on a delivery-versus-payment basis.

SAFEKEEPING AND CUSTODY. To protect against potential losses due to failure of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all cash and securities in the City's portfolio shall be held in safekeeping in the City's name by a third-party custodian, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. All investment transactions will require a safekeeping receipt or acknowledgment generated from the trade. A monthly report will be received by the City from the custodian listing all securities held in safekeeping with current market data and other information.

City of Solana Beach 202524-262-a Investment Policy
15 XV. MAXIMUM MATURITY
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities.

The City will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment.

XVI. RISK MANAGEMENT AND DIVERSIFICATION

MITIGATING CREDIT RISK IN THE PORTFOLIO
Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
• The diversification requirements included in the "Authorized Investments" section of this policy are designed to mitigate credit risk in the portfolio. • No more than 5% of the total portfolio may be invested in securities of any single issuer, except where the issuer is the US Government, its Agencies and GSEs, an authorized Supranational issuer or where the security is a Money Market Mutual Fund, Local City Investment Fund (LAIF) or other Local Government Investment Pool, or where otherwise specified in this investment policy.
• The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City's risk preferences. • If securities owned by the City are downgraded to a level below the quality required by this investment policy, making the security ineligible for additional purchases, the following steps will be taken:
• Any actions taken related to the downgrade by an investment manager will be promptly communicated to the Treasurer.
• If a decision is made to retain the security in the portfolio, the credit situation will be monitored and reported promptly to the City Council.

City of Solana Beach 202524-262-a Investment Policy
16 The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:
• The City will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements.
• The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy. • The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City's investment objectives, constraints and risk tolerances.

XVIII. PERFORMANCE EVALUATION
The investment portfolio shall be designed to attain a market-average rate of return throughout budgetary and economic cycles, considering the City's risk constraints, the cash flow characteristics of the portfolio, and state and local laws, ordinances or resolutions that restrict investments.

The Treasurer shall monitor and evaluate the portfolio's performance relative to the chosen market benchmark(s), which will be included in the Treasurer's quarterly report. The Treasurer shall select an appropriate, readily available index to use as a market benchmark.

XIX. REPORTING

City of Solana Beach 202524-262§ Investment Policy
17 QUARTERLY REPORTS
The Treasurer will submit a quarterly investment report to the City Council which provides full disclosure of the City's investment activities within 45 days after the end of the quarter per Government Code Section 53646(b)(1 ). These reports will disclose, at a minimum, the following information about the City's portfolio:

2. Transactions for the period.

3. A description of the funds, investments and programs (including lending programs) managed by contracted parties (i.e. LAIF; investment pools, outside money managers and securities lending agents)

6. A statement that the City has adequate funds to meet its cash flow requirements for the next six months.

ANNUAL REPORTS
A comprehensive annual report will be presented to the City Council. This report will include comparisons of the City's return to the market benchmark return, suggest policies and improvements that might enhance the investment program, and will include an investment plan for the coming year.

XX. REVIEW OF INVESTMENT POLICY
The investment policy will be reviewed and adopted at least annually within 120 days of the end of the fiscal year, to ensure its consistency with the overall objectives of City of Solana Beach 202524-262& Investment Policy
18 preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends. Any recommended modifications or amendments shall be presented by Staff to the City Council for their consideration and adoption.

City of Solana Beach 202524-262& Investment Policy
19 XX. REVIEW OF INVESTMENT POLICY
The investment policy will be revimved and adopted at least annually within 120 days of the end of the fiscal year, to ensure its consistency with the overall objectives of preservation of principal, liquidity and return , and its relevance to current law and financial and economic trends. Any recommended modifications or amendments shall be presented by Staff to the City Council for their consideration and adoption.

City of Solana Beach 202524-262-§ Investment Policy
20 Appendix A
Glossary of Investment Terms
AGENCIES. Shorthand market terminology for any obligation issued by a governmentsponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:

FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds.

FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called "Freddie Mac" issues discount notes, bonds and mortgage pass-through securities.

FNMA. Like FHLB and Freddie Mac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as "Fannie Mae," issues discount notes, bonds and mortgage passthrough securities.

GNMA. The Government National Mortgage Association, known as "Ginnie Mae," issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.

PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.

ASKED. The price at which a seller offers to sell a security.

ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

AVERAGE LIFE. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.

BANKER'S ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which "accepts" the obligation to pay the investor.

City of Solana Beach 202524-262& Investment Policy
Appendix A-1
BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

BID. The price at which a buyer offers to buy a security.

BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from their own position.

CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable.

CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a participating institution of CDARS) 1 11hile still
maintaining FDIC insurance coverage. CD/\RS is currently the only entity providing this service. CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained.

COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

COMMERCIAL PAPER. The short-term unsecured debt of corporations.

CosT YIELD. The annual income from an investment divided by the purchase cost.

Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return.

COU PON. The rate of return at which interest is paid on a bond.

CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

City of Solana Beach 202524-262-§ Investment Policy
Appendix A-2
CURRENT YIELD. The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor's cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.

DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for their own position.

DEBENTURE. A bond secured only by the general credit of the issuer.

DELIVERY vs. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser's agent.

DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has beeh separated from other components ("Stripped" coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index.

DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker's acceptances, are known as discount securities. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.

FEDERAL FUNDS RATE. The rate of interest charged by banks for short-term loans to other banks. The Federal Reserve Bank through open-market operations establishes it.

FEDERAL OPEN MARKET COMMITTEE. A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves.

LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

City of Solana Beach 202524-262-a Investment Policy
Appendix A-3
LIQUIDITY. The speed and ease with which an asset can be converted to cash.

LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer's Office.

LOCAL GOVERNMENT INVESTMENT POOL Investment pools that range from the State Treasurer's Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.

MAKE WHOLE CALL A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole."
MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral.

MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

MARKET VALUE. The price at which a security can be traded.

MARKING TO MARKET. The process of posting current market values for securities in a portfolio.

MATURITY. The final date upon which the principal of a security becomes due and payable.

An investment's term or remaining maturity is measured from the settlement date to final maturity.

MODIFIED DURATION. The percent change in price for a 100-basis point change in yields.

Modified duration is the best single measure of a portfolio's or security's exposure to market risk.

MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker's acceptances) are issued and traded.

City of Solana Beach 202524-262-5 Investment Policy
Appendix A-4
MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses.

MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund's prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund's prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

PLACEMENT SERVICE DEPOSITS. A private service that allows local agencies to invest in FDIC-insured deposits with one or more banks, savings and loans, and credit unions located in the United States. lntraFi (formerly known as CDARS) is an example of an entity that provides this service.

PREMIUM. The difference between the par value of a bond and the cost of the bond, when the cost is above par.

PREPAYMENT SPEED. A measure of how quickly principal is repaid to investors in mortgage securities.

PREPAYMENT WINDOW. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed.

PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as "Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes."
REALIZED YIELD. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio.

City of Solana Beach 202524-262§ Investment Policy
Appendix A-5
REGIONAL DEALER. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer.

REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller's point of view, the same transaction is a reverse repurchase agreement.

SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer's name.

Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.

TOTAL RATE OF RETURN. A measure of a portfolio's performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.

TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues "cash management" bills as needed to smooth out cash flows.

TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.

TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.

VOLATILITY. The rate at which security prices change with changes in general economic conditions or the general level of interest rates.

City of Solana Beach 202524-262& Investment Policy
Appendix A-6
YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.

City of Solana Beach 202524-262-§ Investment Policy
Appendix A-7
CITY COUNCIL ACTION:
______________________________________________________________________ ______________________________________________________________________ AGENDA ITEM # A.3.

STAFF REPORT

CITY OF SOLANA BEACH
TO: Honorable Mayor and City Councilmembers
FROM: Alyssa Muto, City Manager
MEETING DATE: June 18, 2025
ORIGINATING DEPT: Finance – Rachel Jacobs, Finance Director SUBJECT: City Council Consideration of Resolution 2025-053 Adopting the Fiscal Year 2025/26 Fire Benefit Fee
BACKGROUND:

On April 8, 1980, voters in the Solana Beach Fire Protection District (District) approved a Fire Benefit Fee (Fee) by more than a two-thirds vote in an amount not to exceed $10.00 per unit of benefit per year, on real property within the boundaries of the District. The District was subsequently merged with the City of Solana Beach (City), and the City now has the responsibility of administering this Fee. Because the Fee was adopted by the voters before the passage of Proposition 218, it is not subject to its requirements.

There is no legal requirement for a public hearing, however, the City has published a “Notice of Setting the Fire Benefit Fee” (Notice) to notify residents that they have the right to request that this item be removed from the consent agenda for discussion. The Notice was published in the local newspaper on May 2, 2025.

This item is before City Council to consider approval of Resolution 2025-053 setting the Fire Benefit Fee and authorizes the fee to be placed on the County Assessment rolls.

DISCUSSION:

Each year, the City Council is required to formally set the Fire Benefit Fee for levying on the tax roll. Staff is recommending that the Fee remain at the same level for Fiscal Year (FY) 2025/26 at $10.00 per benefit unit. This Fee has not been increased since it was approved by voters in 1980. In order to increase the Fire Benefit Fee, the City would need a public vote with two-thirds of the voters approving any increase.

Properties in the City would be charged an annual amount for the Fire Benefit Fee at $10.00 per benefit unit according to the schedule outlined on the next page.

June 18, 2025
FY 2025/26 Fire Benefit Fee

Page 2 of 2 ends

ACTUAL LAND USE MAXIMUM NUMBER OF UNITS OF BENEFIT
Unimproved 2 units per 1 acre and/or portion of 1 acre, up to 20 units per parcel
Residential 5 units per dwelling unit
Commercial 15 units per 1 acre and/or portion of 1 acre Industrial 20 units per 1 acre and/or portion of 1 acre Timeshares 1 unit per timeshare week (1/5 of residential) CEQA COMPLIANCE STATEMENT:

Not a project as defined by CEQA.

FISCAL IMPACT:

The $10.00 per benefit unit fee raises approximately $450,000 per year that is used to assist in funding Fire Department operating expenses projected at $6,597,374 for FY 2025/26.

WORK PLAN:

N/A
OPTIONS:
• Approve Staff recommendation.
• Do not approve Staff recommendation and provide direction.

CITY STAFF RECOMMENDATION:

Staff recommends that the City Council consider adoption of Resolution 2025-053:

1. Setting the FY 2025/26 Fire Benefit Fee at $10.00 per unit, and

2. Approving the Fee for levying on the tax roll.
__________________________________
Alyssa Muto, City Manager
Attachments:

1. Resolution 2025-053
RESOLUTION 2025-053

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SOLANA BEACH, CALIFORNIA, ESTABLISHING THE FISCAL
YEAR 2025/26 FIRE BENEFIT FEE AS AUTHORIZED BY THE
VOTERS AT $10.00 PER BENEFIT UNIT
WHEREAS, the City of Solana Beach has merged with the Solana Fire Protection District; and
WHEREAS, the voters of the Solana Fire Protection District on April 8, 1980, approved the following proposition:

Shall the Solana Fire Protection District establish and impose standby or availability charges, not to exceed $10.00 per unit of benefit per year, on all real property (except that of federal, state, or local governmental agencies) within the boundaries of said Fire Protection District, the collection of which charges shall not decrease the appropriations limit of said Fire Protection District in any year for a period of four years from the effective date hereof, and which charges shall be established by the Board of Directors of said Fire Protection District from time to time, subject, however, to the following maximum units of benefit:

Actual Land Use Maximum Number of Units of Benefit
Unimproved 2 units per 1 acre and/or portion of 1 acre, up to 20 units per parcel
Residential 5 units per dwelling unit
Commercial 15 units per 1 acre and/or portion of 1 acre Industrial 20 units per 1 acre and/or portion of 1 acre; and
Timeshares 1 unit per timeshare week (1/5 of residential) WHEREAS, the City of Solana Beach, as successor to the Solana Fire Protection District, is authorized to continue to levy the fire benefit fee; and WHEREAS, the amount of the fire benefit fee remains unchanged.

NOW, THEREFORE, the City Council of the City of Solana Beach, California, resolves as follows:

Resolution 2025-053
FY 2025/26 Fire Benefit Fee

Page 2 of 2 ends

1. The foregoing recitations are true and correct.

2. The fire benefit charge is hereby set at $10.00 per benefit unit for all land use categories set forth above, as confirmed by this Board, and will be filed with the Auditor and Controller of the County of San Diego.

3. The San Diego County Auditor shall place on the County Assessment Roll, opposite each parcel of land, the amount of levy so apportioned by the method of apportionment formula, as set forth above, and such levies shall be collected at the same time and in the same manner as ordinary ad valorem property taxes of the City for the fiscal year commencing July 1, 2025.

4. The City Clerk’s Designee, Koppel & Gruber Public Finance, is hereby authorized and directed to file the levy with the San Diego County Auditor subsequent to the adoption of this Resolution.

PASSED AND ADOPTED this 18th day of June 2025, at a regular meeting of the City Council of the City of Solana Beach, California 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 CITY COUNCIL ACTION:
_____________________________________________________________________ _____________________________________________________________________ AGENDA ITEM # A.4.

STAFF REPORT

CITY OF SOLANA BEACH
TO: Honorable Mayor and City Councilmembers
FROM: Alyssa Muto, City Manager
MEETING DATE: June 18, 2025
ORIGINATING DEPT: Finance – Rachel Jacobs, Finance Director SUBJECT: City Council Consideration of Resolutions 2025-048 Through 2025-051 Approving the Fiscal Year (FY) 2025/26 Municipal Improvement Districts Benefit (MID) Fees
BACKGROUND:

The four Municipal Improvement Districts (MIDs) in Solana Beach were originally formed pursuant to Government Code Section 25210.1 as County Service Areas (CSAs) prior to the incorporation of the City. The CSAs were formed by the County Board of Supervisors on the following dates:

Date Established
MID No. 9C Santa Fe Hills 03-24-69
MID No. 33 Highway 101/Railroad Right-of-Way 08-03-71
MID No. 9E Isla Verde 12-18-74
MID No. 9H San Elijo #2 10-10-77
Upon formation of these MIDs, the County also entered into landscaping and maintenance agreements with the homeowners’ associations and members of these CSAs under which the County provided various extended services and these CSAs provided a means to fund the extended services, which included landscaping and maintenance of streets, medians, slopes, certain drainage facilities, and appurtenant improvements in various areas of the County. These CSAs were further established so that local property owners within the prescribed boundaries of the special districts would be provided extended services.

After the landscaping and maintenance agreements with the County expired according to their terms, the CSAs functioned more like pass through entities, with the homeowners’ associations performing the services and getting reimbursed from the benefit fees (with the exception of MID No. 33). The property owners share the cost of the maintenance through service charges based on the benefit received. Upon incorporation, the City took over the management of the benefit fee assessments for these MIDs.

June 18, 2025
FY 2025/26 MID Benefit Fees

Page 2 of 4 ends

This item is before the Council to consider approval of the attached resolutions which set the benefit fees for the four MIDs and authorize the fees to be placed on the County Assessor Rolls.

DISCUSSION:

When the CSAs were formed, property owners within the boundary of the service area desired these extended miscellaneous services. These services were benefits received by the property owners and not originally supported by general revenues of the County.

These service areas were established as an alternate means of providing landscape maintenance services. The homeowners’ associations contract directly with a private landscape contractor to provide the landscaping services.

These services were also not supported by the City’s General Fund upon incorporation. As a result of the City’s July 1, 1986 incorporation, the CSAs were dissolved and replaced by the new "Municipal Improvement Districts" (MIDs). As part of the incorporation process, the City Council assumed the role of the Board of Supervisors for the new MIDs and the City has managed the MIDs since that time.

With the exception of MID No. 33, for which there is no homeowners’ association, the City provides three of the four districts with budgetary information upon which the annual fees are based. The City provides a service to these homeowners’ associations by translating each budget into a unit cost per parcel, and then levying the required amount on the tax roll each year. The City also performs monthly inspections of the landscaping work and responds to complaints and inquiries.

The City receives a fee for providing the services to set and collect the landscape maintenance fee, conduct a monthly landscape inspection, track the income and interest earnings, process monthly payments, and compile the annual accounting information and provide it to the homeowners’ associations. The City also reviews each budget to ensure that all charges are related to the provision of extended services or administration of the MIDs.

MID No. 33 is the only MID for which services are not provided by a homeowners’ association. The oversight responsibility for the landscape maintenance is provided by the City's Public Works Department. A budget is produced each year by the City to provide funds for landscape maintenance within the service area. The assessment area for MID No. 33 includes all parcels west of Interstate 5 to the Pacific Ocean and from the San Elijo Lagoon south to Via de la Valle/Border Avenue.

The MID No. 33 service area was authorized to provide landscape improvements and maintenance for Highway 101 medians and the railroad right-of-way that is appurtenant to Highway 101. These landscaped medians were installed using funding provided by the County for select system roads which also require continued maintenance. MID No. 33 provides an alternate funding source for this public service in Solana Beach; however, this June 18, 2025
FY 2025/26 MID Benefit Fees

Page 3 of 4 ends

revenue is significantly less than the actual costs to maintain these areas. The maintenance is provided under contract with a landscape maintenance contractor as well as City Staff.

Because the MIDs were created prior to Proposition 218, the MID charges for MID No. 9C, No. 9E, No. 9H, and No. 33 may be levied as proposed without additional requirements so long as the amount of the charge does not exceed pre-November 1996 levels. The charges proposed are at the same rates they have been since their inception and are not being raised.

Since there is no legal requirement for a public hearing, the City has instead published a “Notice of Setting Various Fees for the Municipal Improvement Districts” notifying residents that they have the right to request that this item be removed from the consent agenda for discussion if required. That notice was published in the local newspaper on May 02, 2025.

Staff therefore recommends that the City Council approve the annual fees as outlined in the attached resolutions as follows: for MID No. 9C (Santa Fe Hills) at $232.10 per unit; MID No. 9E (Isla Verde) at $68.74 per unit; for MID No. 9H (San Elijo Hills #2) at $289.58 per unit; and for MID No. 33 at $3.12 per unit ($.06 per timeshare week).

CEQA COMPLIANCE STATEMENT:

Not a project as defined by CEQA.

FISCAL IMPACT:

The fee for each MID will generate the total annual benefit charge revenue, as shown below, to service the MID:

FEE _ REVENUE
MID No. 9C - Santa Fe Hills $232.10 per unit $ 94,696
MID No. 9E - Isla Verde $ 68.74 per unit $ 5,980
MID No. 9H - San Elijo Hills #2 $289.58 per unit $ 34,170 MID No. 33 - Highway 101/Railroad Right-of-Way $ 3.12 per unit $ 11,756 WORK PLAN:

N/A
OPTIONS:
• Approve Staff recommendation.
• Do not approve Staff recommendation and provide direction.

June 18, 2025
FY 2025/26 MID Benefit Fees

Page 4 of 4 ends

CITY STAFF RECOMMENDATION:

Staff recommends that the City Council:

1. Approve Resolution 2025-048, setting the Benefit Charges for MID No. 9C, Santa Fe Hills, at $232.10 per unit for FY 2025/26.

2. Approve Resolution 2025-049, setting the Benefit Charges for MID No. 9E, Isla Verde, at $68.74 per unit for FY 2025/26.

3. Approve Resolution 2025-050, setting the Benefit Charges for MID No. 9H, San Elijo Hills #2, at $289.58 per unit for FY 2025/26.

4. Approve Resolution 2025-051 setting the Benefit Charges for MID No. 33, Highway 101/Railroad Right-of-Way, at $3.12 per unit for FY 2025/26. _________________________________
Alyssa Muto, City Manager
Attachments:

1. Resolution 2025-048 – MID 9C

2. Resolution 2025-049 – MID 9E

3. Resolution 2025-050 – MID 9H

4. Resolution 2025-051 – MID 33
RESOLUTION 2025-048

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF SOLANA BEACH, CALIFORNIA, SETTING THE

BENEFIT CHARGES FOR MUNICIPAL IMPROVEMENT
DISTRICT NUMBER 9C FOR FISCAL YEAR 2025/26
WHEREAS, the City Council considered a report concerning the benefit charge to be levied within the Municipal Improvement District Number 9C, Santa Fe Hills (the “District”) pursuant to an Ordinance previously approved by the voters on March 24, 1969; and
WHEREAS, the City Council has determined that charges for landscape maintenance service be shown as a separate item on property tax bills and collected at the same time and in the same manner as ordinary county ad valorem taxes and caused to be prepared and filed, written reports describing real property receiving landscape maintenance services within the District; and
WHEREAS, the charges for the parcels within the District for Fiscal Year 2025/26 have been computed in conformity with the procedure set forth in, and charges described by, applicable ordinances and resolutions of the Solana Beach City Council; and WHEREAS, the charges are at the same rates they were since their inception and are not being raised; and
WHEREAS, the amount paid to the homeowners’ association from charges or taxes levied in the District shall include the reasonably estimated cost of the work or improvement to be done in the District by the homeowners’ association for the ensuing fiscal year, plus incidental expenses directly related to the provision of extended services or administration of the District; and
WHEREAS, services shall be provided by the homeowners' association in accordance with the contract last approved by the County of San Diego with the homeowners’ association providing the services, not the County or other entity. The City of Solana Beach will continue providing management and inspection services; and WHEREAS, payments to the homeowners’ association for service shall be made in twelve equal monthly installments and payment for incidental expenses shall be made upon submission of a statement.

NOW, THEREFORE, the City Council of the City of Solana Beach, California, resolves as follows:

1. The foregoing recitations are true and correct.

2. The benefit unit charge for Municipal Improvement District No. 9C, Santa Fe Resolution 2025-048
FY 2025/26 MID Fees

Page 2 of 2 ends

Hills, for Fiscal Year 2025/26 will be $232.10 per unit, as listed on Exhibit 1 of this Resolution and confirmed by the City Council and will be filed with the Auditor and Controller of the County of San Diego.

3. The San Diego County Auditor shall place on the County Assessor Roll, opposite each parcel of land within the District, the levy amount of $232.10 per unit, as set forth in Exhibit 1 of this Resolution, and such levies shall be collected at the same time and in the same manner as ordinary ad valorem property taxes of the City for the fiscal year commencing July 1, 2025.

4. The City Clerk’s Designee, Koppel & Gruber Public Finance, is hereby authorized and directed to file the levy with the San Diego County Auditor subsequent to the adoption of this Resolution.

PASSED AND ADOPTED this 18th day of June, 2025, at a special meeting of the City Council of the City of Solana Beach, California by the following vote:

EXHIBIT A
Resolution 2025-048
M.I.D. FEES
FY 2023 through FY 2026
FY 2023
BUDGET
FY 2023
FEES
FY 2024
BUDGET
FY 2024
FEES
FY 2025
BUDGET
FY 2025
FEES
FY 2026
BUDGET
FY 2026
FEES
Highway 101
MID No. 33 11,500 3.12 11,500 3.12 11,500 3.12 11,756 3.12 Santa Fe Hills
MID No. 9C 95,000 232.10 95,000 232.10 95,000 232.10 94,696 232.10 Isla Verde
MID No. 9E 6,000 68.74 6,000 68.74 6,000 68.74 5,980 68.74 San Elijo Hills #2
MID No. 9H 34,200 289.58 34,200 289.58 34,200 289.58 34,170 289.58 RESOLUTION 2025-049

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF SOLANA BEACH, CALIFORNIA, SETTING THE

BENEFIT CHARGES FOR MUNICIPAL IMPROVEMENT
DISTRICT NUMBER 9E FOR FISCAL YEAR 2025/26
WHEREAS, the City Council considered a report concerning the benefit charge to be levied within the Municipal Improvement District Number 9E, Isla Verde (the “District”) pursuant to an Ordinance previously approved by the voters on December 18, 1974; and WHEREAS, the City Council has determined that charges for landscape maintenance service be shown as a separate item on property tax bills and collected at the same time and in the same manner as ordinary county ad valorem taxes and caused to be prepared and filed, written reports describing real property receiving landscape maintenance services within the District; and
WHEREAS, the charges for the parcels within the District for Fiscal Year 2025/26 have been computed in conformity with the procedure set forth in, and charges described by, applicable ordinances and resolutions of the Solana Beach City Council; and WHEREAS, the charges are at the same rates they were since their inception and are not being raised; and
WHEREAS, the amount paid to the homeowners’ association from charges or taxes levied in the District shall include the reasonably estimated cost of the work or improvement to be done in the District by the homeowners’ association for the ensuing fiscal year, plus incidental expenses directly related to the provision of extended services or administration of the District; and
WHEREAS, services shall be provided by the homeowners' association in accordance with the contract last approved by the County of San Diego with the homeowners’ association providing the services, not the County or other entity. The City of Solana Beach will continue providing management and inspection services; and WHEREAS, payments to the homeowners’ association for service shall be made in twelve equal monthly installments and payment for incidental expenses shall be made upon submission of a statement.

NOW, THEREFORE, the City Council of the City of Solana Beach, California, resolves as follows:

1. The foregoing recitations are true and correct.

2. The benefit unit charge for Municipal Improvement District No. 9E, Isla Verde, for Fiscal Year 2025/26 will be $68.74 per unit, as listed on Resolution 2025-049
FY 2025/26 MID - #9E Benefit Fee

Page 2 of 2 ends

Exhibit 1 of this Resolution and confirmed by the City Council and will be filed with the Auditor and Controller of the County of San Diego.

3. The San Diego County Auditor shall place on the County Assessor Roll, opposite each parcel of land within the District, the levy amount of $68.74 per unit, as set forth in Exhibit 1 of this Resolution, and such levies shall be collected at the same time and in the same manner as ordinary ad valorem property taxes of the City for the fiscal year commencing July 1, 2025.

4. The City Clerk’s Designee, Koppel & Gruber Public Finance, is hereby authorized and directed to file the levy with the San Diego County Auditor subsequent to the adoption of this Resolution.

PASSED AND ADOPTED this 18th day of June, 2025, at a special meeting of the City Council of the City of Solana Beach, California by the following vote:

EXHIBIT A
Resolution 2025-049
M.I.D. FEES
FY 2023 through FY 2026
FY 2023
BUDGET
FY 2023
FEES
FY 2024
BUDGET
FY 2024
FEES
FY 2025
BUDGET
FY 2025
FEES
FY 2026
BUDGET
FY 2026
FEES
Highway 101
MID No. 33 11,500 3.12 11,500 3.12 11,500 3.12 11,756 3.12 Santa Fe Hills
MID No. 9C 95,000 232.10 95,000 232.10 95,000 232.10 94,696 232.10 Isla Verde
MID No. 9E 6,000 68.74 6,000 68.74 6,000 68.74 5,980 68.74 San Elijo Hills #2
MID No. 9H 34,200 289.58 34,200 289.58 34,200 289.58 34,170 289.58

RESOLUTION 2025-050

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF SOLANA BEACH, CALIFORNIA, SETTING THE

BENEFIT CHARGES FOR MUNICIPAL IMPROVEMENT
DISTRICT NUMBER 9H FOR FISCAL YEAR 2025/26
WHEREAS, the City Council considered a report concerning the benefit charge to be levied within the Municipal Improvement District Number 9H, San Elijo Hills #2 (the “District”) pursuant to an Ordinance previously approved by the voters on October 10, 1977; and
WHEREAS, the City Council has determined that charges for landscape maintenance service be shown as a separate item on property tax bills and collected at the same time and in the same manner as ordinary county ad valorem taxes and caused to be prepared and filed, written reports describing real property receiving landscape maintenance services within the District; and
WHEREAS, the charges for the parcels within the District for Fiscal Year 2025/26 have been computed in conformity with the procedure set forth in, and charges described by, applicable ordinances and resolutions of the Solana Beach City Council; and WHEREAS, the charges are at the same rates they were since their inception and are not being raised; and
WHEREAS, the amount paid to the homeowners’ association from charges or taxes levied in the District shall include the reasonably estimated cost of the work or improvement to be done in the District by the homeowners’ association for the ensuing fiscal year, plus incidental expenses directly related to the provision of extended services or administration of the District; and
WHEREAS, services shall be provided by the homeowners' association in accordance with the contract last approved by the County of San Diego with the homeowners’ association providing the services, not the County or other entity. The City of Solana Beach will continue providing management and inspection services; and WHEREAS, payments to the homeowners’ association for service shall be made in twelve equal monthly installments and payment for incidental expenses shall be made upon submission of a statement.

NOW, THEREFORE, the City Council of the City of Solana Beach, California, resolves as follows:

1. The foregoing recitations are true and correct.

2. The benefit unit charge for Municipal Improvement District No. 9H, San Resolution 2025-050
FY 2025/26 MID - #9H Benefit Fee

Page 2 of 2 ends

Elijo Hills #2, for Fiscal Year 2025/26 will be $289.58 per unit, as listed on Exhibit 1 of this Resolution and confirmed by the City Council, and will be filed with the Auditor and Controller of the County of San Diego.

3. The San Diego County Auditor shall place on the County Assessor Roll, opposite each parcel of land within the District, the levy amount of $289.58 per unit, as set forth in Attachment No. 1 of this Resolution, and such levies shall be collected at the same time and in the same manner as ordinary ad valorem property taxes of the City for the fiscal year commencing July 1, 2025.

4. The City Clerk’s Designee, Koppel & Gruber Public Finance, is hereby authorized and directed to file the levy with the San Diego County Auditor subsequent to the adoption of this Resolution.

PASSED AND ADOPTED this 18th day of June, 2025, at a special meeting of the City Council of the City of Solana Beach, California by the following vote:

EXHIBIT A
Resolution 2025-050
M.I.D. FEES
FY 2023 through FY 2026
FY 2023
BUDGE
T
FY 2023
FEES
FY 2024
BUDGET
FY 2024
FEES
FY 2025
BUDGET
FY 2025
FEES
FY 2026
BUDGET
FY 2026
FEES
Highway 101
MID No. 33 11,500 3.12 11,500 3.12 11,500 3.12 11,756 3.12 Santa Fe Hills
MID No. 9C 95,000 232.10 95,000 232.10 95,000 232.10 94,696 232.10 Isla Verde
MID No. 9E 6,000 68.74 6,000 68.74 6,000 68.74 5,980 68.74 San Elijo Hills #2
MID No. 9H 34,200 289.58 34,200 289.58 34,200 289.58 34,170 289.58

RESOLUTION 2025-051

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF SOLANA BEACH, CALIFORNIA, SETTING THE

BENEFIT CHARGES FOR MUNICIPAL IMPROVEMENT
DISTRICT No. 33 FOR FISCAL YEAR 2025/26
WHEREAS, the City Council considered a report concerning the benefit charge to be levied within the Municipal Improvement District Number 33, Highway 101/Railroad Right-of-Way, pursuant to an Ordinance previously approved by the voters on August 3, 1971; and
WHEREAS, the City Council has determined that charges for providing landscape maintenance service be shown as a separate item on property tax bills and collected at the same time and in the same manner as ordinary county ad valorem taxes and caused to be prepared and filed, written reports describing real property receiving landscape maintenance services within the District; and
WHEREAS, the charges for the parcels within the District for Fiscal Year 2025/26 have been computed in conformity with the procedure set forth in, and charges described by, applicable ordinances and resolutions of the Solana Beach City Council; and WHEREAS, the charges are at the same rates they have been since their inception and are not being raised.

NOW, THEREFORE, the City Council of the City of Solana Beach, California, resolves as follows:

1. The foregoing recitations are true and correct.

2. The benefit unit charge for Municipal Improvement District No. 33, Highway 101/Railroad Right-of-Way, for Fiscal Year 2025/26 will be $3.12 per unit, as listed on Exhibit 1 of this Resolution and confirmed by the City Council, and will be filed with the Auditor and Controller of the County of San Diego.

3. The San Diego County Auditor shall place on the County Assessor Roll, opposite each parcel of land within the District, the levy amount of $3.12 per unit, as set forth in Exhibit 1 of this Resolution, and such levies shall be collected at the same time and in the same manner as ordinary ad valorem property taxes of the City for the fiscal year commencing July 1, 2025.

4. The City Clerk’s Designee, Koppel & Gruber Public Finance, is hereby authorized and directed to file the levy with the San Diego County Auditor subsequent to the adoption of this Resolution.

Resolution 2025-051
FY 2025/26 MID - #33 Benefit Fee

Page 2 of 2 ends

PASSED AND ADOPTED this 18th day of June, 2025, at a special meeting of the City Council of the City of Solana Beach, California by the following vote:

EXHIBIT A
Resolution 2025-051
M.I.D. FEES
FY 2023 through FY 2026
FY 2023
BUDGE
T
FY 2023
FEES
FY 2024
BUDGET
FY 2024
FEES
FY 2025
BUDGET
FY 2025
FEES
FY 2026
BUDGET
FY 2026
FEES
Highway 101
MID No. 33 11,500 3.12 11,500 3.12 11,500 3.12 11,756 3.12 Santa Fe Hills
MID No. 9C 95,000 232.10 95,000 232.10 95,000 232.10 94,696 232.10 Isla Verde
MID No. 9E 6,000 68.74 6,000 68.74 6,000 68.74 5,980 68.74 San Elijo Hills #2
MID No. 9H 34,200 289.58 34,200 289.58 34,200 289.58 34,170 289.58 CITY COUNCIL ACTION:

AGENDA ITEM # A.5.

STAFF REPORT

CITY OF SOLANA BEACH
TO: Honorable Mayor and City Councilmembers
FROM: Alyssa Muto, City Manager
MEETING DATE: June 18, 2025
ORIGINATING DEPT: Finance – Rachel Jacobs, Finance Director SUBJECT: City Council Consideration of Resolution 2025-052 Approving the Fiscal Year 2025/26 Appropriations Limit
BACKGROUND:

The Gann Initiative (Proposition 4) was passed in November 1979, by the voters of California, becoming a constitutional amendment. This amendment limited the annual growth of state and local government budgets. The amendment establishes FY 1978/79 as the base year and allows the base to increase in future years by the percentage of growth in population and by the increase in the Consumer Price Index or California Per Capita Personal Income (whichever is lower).

Proposition 4 does not limit all appropriations but does limit appropriations financed from "Proceeds of Taxes". "Proceeds of Taxes" include such revenues as property taxes, sales and use taxes, transient occupancy taxes, and most state subventions. Revenues from other sources such as fees, charges for services and federal grants are considered "NonProceeds of Taxes" and are not subject to the Appropriations Limit.

In order to deal with an increasing number of complaints about the restrictions of Proposition 4, and to increase the accountability of local government in adopting their limits, voters approved Proposition 111 in June 1990. Proposition 111 provided new adjustment formulas, which make the Appropriations Limit more responsive to local growth issues. Proposition 111 also requires an annual review of Appropriations Limit calculations.

The statutes regarding the adoption of the Appropriations Limit are contained in California Government Code Section 7910. The law calls for the adoption of the Appropriations Limit by resolution prior to the fiscal year (FY) in question. Following the passage of Proposition 111, the requirements for adopting the Appropriations Limit were changed requiring a recorded vote of the City Council as to which of the annual adjustment factors had been selected for the ensuing year.

FY 2025/26 Appropriations Limit
June 18, 2025

Page 2 of 3 ends

The adoption of the Appropriations Limit is done at a regular meeting or a noticed special meeting. There is no required public hearing or special public notice. Once the Appropriations Limit is adopted, the public has forty-five (45) days from the effective date of the resolution to initiate judicial action regarding the Appropriations Limit. The adoption of the Appropriations Limit, and any adjustments to it, are deemed to be legislative acts.

This is important to note, in that the courts have determined that a future Legislature/Council may modify the acts of a prior legislative decision without violating Article XIIIB.

This item is before the City Council to consider Resolution 2025-052 (Attachment 1) approving the FY 2025/26 Appropriations Limit.

DISCUSSION:

The FY 2025/26 Appropriations Limit is established by adjusting the current Appropriations Limit for growth in changes in California’s per capita income and population for the City. Section 7901(b) of the Government Code allows a city to choose between the change in population of the city and the change in population of the County in adjusting the previous year’s Appropriations Limit. These figures are provided by the State of California Department of Finance (Attachment 3). Staff historically has used the change in the County of San Diego’s population, which increased by 0.45%, rather than the change in the City’s population, which decreased by -0.52%.

Section 7901(b) also dictates that the City must select its change in population pursuant to this section annually by a recorded vote of the governing body. Approval of Resolution 2025-052 by the City Council would establish that the City Council chooses to use the County of San Diego’s change in population for the calculation of the Appropriations Limit.

Staff has calculated the City’s Appropriations Limit for FY 2025/26 to be $52,471,772 (Attachment 2). Staff has included the following detail involved in calculating the Appropriations Limit: Schedule A – GANN Limit Calculation, Schedule B - Estimated Revenue and Resource Schedule, and Schedule C - Appropriations Subject to Limit.

Staff has also included the Annual Adjustment Factors for FY 2025/26 (Attachment 3).

This schedule lists the California change in per capita personal income, and the changes in both the City’s and County of San Diego’s population that were selected in calculating the Appropriations Limit.

CEQA COMPLIANCE STATEMENT:

Not a project under CEQA.

FISCAL IMPACT:

The FY 2025/26 Appropriations Limit is calculated to be $52,471,772. The amount of the appropriations (proceeds of taxes) that are subject to the limit is $27,276,110. This amount is $25,195,662 under the Appropriations Limit. If the actual receipts of the proceeds of taxes received in FY 2025/26 exceed the Appropriation Limits, then the excess receipts would FY 2025/26 Appropriations Limit
June 18, 2025

Page 3 of 3 ends

have to be refunded within the next two fiscal years, absent a voter approval to increase the limit.

WORK PLAN:

N/A
OPTIONS:
 Approve Staff recommendation increasing the City’s Appropriations Limit for FY 2025/26.
 Do not approve an increase to the City’s Appropriations Limit for FY 2025/26 and provide direction to Staff.

CITY STAFF RECOMMENDATION:

Staff recommends the City Council adopt Resolution 2025-052 establishing the FY 2025/26 Appropriations Limit in accordance with Article XIIIB of the California Constitution and Government Code Section 7910 and choosing the County of San Diego’s change in population growth to calculate the Appropriations Limit. _______________________
Alyssa Muto, City Manager
Attachments:

1. Resolution 2025-052

2. Gann Limit Calculation

3. Annual Adjustment Factors FY 2025/26
ATTACHMENT 1
RESOLUTION 2025-052

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SOLANA BEACH, CALIFORNIA, ESTABLISHING THE FY
2025/26 APPROPRIATIONS LIMIT IN ACCORDANCE WITH

ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION AND
GOVERNMENT CODE SECTION 7910 AND CHOOSING
THE COUNTY OF SAN DIEGO’S CHANGE IN POPULATION

GROWTH TO CALCULATE THE APPROPRIATIONS LIMIT
WHEREAS, Article XIIIB of the California Constitution was amended June 5, 1990, by Proposition 111 to change the price and population factors that may be used by local jurisdictions in setting their appropriations limit; and WHEREAS, the appropriations limit may increase annually by a factor comprised of the change in population within the local jurisdiction or within the county in which it is located, combined with either the change in California Per Capita Personal Income or the change in the local assessment roll due to local non-residential construction; and WHEREAS, the FY 2025/26 Appropriations Limit for the City of Solana Beach shall be the FY 1987/88 Appropriations Limit adjusted from that year forward by the new growth factors stated in Proposition 111; and
WHEREAS, the City has been provided price and population data from the State Department of Finance; and
WHEREAS, the price factor changes resulting from the change in California Per Capita Income and the change in County population are the factors used for the City of Solana Beach in adjusting its Appropriations Limit.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Solana Beach, California, does hereby resolve as follows:

1. That the foregoing recitations are true and correct.

2. That pursuant to the Government Code Section 7901(b), the City Council chooses to use the County of San Diego’s change in population, as provided by the Department of Finance of the State of California, in calculating the Appropriations Limit for the City of Solana Beach.

3. The Appropriations Limit for the City of Solana Beach for Fiscal Year 2025/26 shall be $52,471,772.

Resolution 2025-052
2025/26 Appropriations Limit

Page 2 of 2 ends

PASSED AND ADOPTED this 18th day of June, 2025, at a regularly scheduled meeting of the City Council of the City of Solana Beach, California 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 Appropriations Limit 2024/25 49,078,294 $
Increase due to California Per Capita Income 6.44% 3,160,642 Subtotal 52,238,936
Increase due to County population growth 0.45% 232,836
Appropriations Limit 2025/26 52,471,772 $
Note: The source of the California per capita income, as well as the change in population, is the State of California Department of Finance's "Price and Population Information" letter dated May 2025
Schedule A
Fiscal Year 2025/26
Gann Limit Calculation
Tax Non-Tax
Revenue/Resource Proceeds Proceeds Total
Property Taxes 10,875,224 $ 1,290,442 $ 12,165,666 $
Sales Tax 9,490,509 - 9,490,509
Other Taxes/Franchise Fees 4,489,877 978,113 5,467,990
Licenses & Permits - 1,071,725 1,071,725
Fines - 456,500 456,500
Use of Money/Property-Interest 20,500 1,585,000 1,605,500 Use of Money/Property-Rental - 100,828 100,828
Intergovernmental 2,400,000 1,923,768 4,323,768
Service Charges - 7,692,765 7,692,765
.

Other Revenue - 1,800,364 1,800,364
Proceeds from Long Term Debt - - -
Departmental Charges - 2,361,795 2,361,795
Transfers In - 765,253 765,253
$ 20,026,553 27,276,110 $ 47,302,663 $
Schedule B
Estimated Revenue and Resources
Fiscal Year 2025/26
LINKED
Projected Revenues per Budget $ 47,302,663 Sch B
Less: Non-Tax Proceeds (20,026,553) Sch B
Projected Revenues from Proceeds of Taxes 27,276,110
Appropriations Limit Fiscal Year 2025/26 52,471,772 Sch A Amount Under Appropriations Limit $ 25,195,662
Percentage Under Appropriations Limit 48.02%
Schedule C
Schedule of Appropriations Subject to Limit
Fiscal Year 2025/26
May 2025
Dear Fiscal Officer:

Subject: Price Factor and Population Information
Appropriations Limit
California Revenue and Taxation Code Section 2227 requires the Department of Finance to transmit an estimate of the percentage change in population to local governments. Each local jurisdiction must use their percentage change in population factor for January 1, 2025, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2025-26. Attachment A provides the change in California’s per capita personal income and an example for utilizing the price factor and population percentage change factor to calculate the 2025-26 appropriations limit. Attachment B provides the city and unincorporated county population percentage change along with the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations.

Population Percent Change for Special Districts
Some special districts must establish an annual appropriations limit. California Revenue and Taxation Code Section 2228 provides additional information regarding the appropriations limit.

Article XIII B, Section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. The code section and the California Constitution can be accessed at the following website: http://leginfo.legislature.ca.gov/faces/codes.xhtml.

Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits.

Population Certification
The population certification program applies only to cities and counties. California Revenue and Taxation Code Section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller’s Office. Finance will certify the higher estimate to the State Controller by June 1, 2025.

Please Note: The prior year’s city population estimates may be revised. The per capita personal income change is based on historical data.

If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086.

JOE STEPHENSHAW
Director
By:

ERIKA LI
Chief Deputy Director
Attachment
~i-,IT 0,:- ..,. . ;:..
t • "1,
: 1,i'iij,> ~ w 1111 n 0 ,,,
,.. DEPARTMENT OF Gavin Newsom ■ Governor
<>,.t,,o,."''" f IN AN CE --------,-0_2_1_0_ S_t_re_e_t, _ te 10 w __ d_o--,-f.-c-a.-g-o-v

OFFICE OF THE DIRECTOR
May 2025
Attachment A
A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year 2025-26 appropriation limit is:

Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2025-26 6.44
B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2025-26 appropriation limit.
2025-26:

Per Capita Cost of Living Change = 6.44 percent
Population Change = 0.28 percent
Per Capita Cost of Living converted to a ratio: 6.44 + 100 = 1.0644 100
Population converted to a ratio: 0.28 + 100 = 1.0028
100
Calculation of factor for FY 2025-26: 1.0644 x 1.0028 = 1.0674

City County Percent Change 24-25
Population Minus
Exclusions 1-1-24
Population Minus
Exclusions 1-1-25 Total Population 1-1-25
Alameda City Alameda -0.22 78,406 78,236 79,020
Albany City Alameda 0.28 20,520 20,578 20,578
Berkeley City Alameda 1.32 126,676 128,348 128,348
Dublin City Alameda 2.17 72,462 74,031 74,691
Emeryville City Alameda -0.28 13,509 13,471 13,471
Fremont City Alameda 0.16 232,241 232,619 232,619
Hayward City Alameda 0.24 161,977 162,359 162,359
Livermore City Alameda -0.23 86,094 85,899 85,899
Newark City Alameda 1.04 48,382 48,886 48,886
Oakland City Alameda 0.52 424,015 426,237 426,457
Piedmont City Alameda -0.28 10,836 10,806 10,806
Pleasanton City Alameda -0.38 77,526 77,232 77,232
San Leandro City Alameda -0.35 88,124 87,813 87,813
Union City Alameda -0.36 66,898 66,657 66,657
Balance of County Alameda -0.27 147,978 147,579 147,646 Incorporated Alameda 0.37 1,507,666 1,513,172 1,514,836 County Total Alameda 0.31 1,655,644 1,660,751 1,662,482 Balance of County Alpine -0.42 1,181 1,176 1,177
County Total Alpine -0.42 1,181 1,176 1,177
Amador City Amador -0.51 197 196 196
Ione City Amador -0.19 5,173 5,163 9,037
Jackson City Amador -1.69 4,905 4,822 4,822
Plymouth City Amador 1.17 1,109 1,122 1,122
Sutter Creek City Amador -1.63 2,580 2,538 2,538
Balance of County Amador -1.63 22,167 21,805 21,848
Incorporated Amador -0.88 13,964 13,841 17,715
County Total Amador -1.34 36,131 35,646 39,563
Biggs City Butte -1.25 1,998 1,973 1,973
Chico City Butte 2.59 110,971 113,847 113,847
Gridley City Butte -1.10 7,383 7,302 7,302
Oroville City Butte 2.25 19,221 19,653 19,653
Paradise Town Butte 7.83 10,283 11,088 11,088
Balance of County Butte -7.51 58,017 53,662 53,662
Incorporated Butte 2.67 149,856 153,863 153,863
County Total Butte -0.17 207,873 207,525 207,525
Angels City Calaveras -0.42 3,585 3,570 3,570
Balance of County Calaveras -0.21 41,183 41,096 41,152
Incorporated Calaveras -0.42 3,585 3,570 3,570
County Total Calaveras -0.23 44,768 44,666 44,722
Colusa City Colusa -0.18 6,548 6,536 6,536
Williams City Colusa -0.48 5,616 5,589 5,589
Balance of County Colusa -0.28 9,929 9,901 9,901
Incorporated Colusa -0.32 12,164 12,125 12,125
County Total Colusa -0.30 22,093 22,026 22,026
Antioch City Contra Costa 0.52 116,177 116,781 116,781
Brentwood City Contra Costa 0.60 65,353 65,747 65,747
Clayton City Contra Costa -0.46 10,793 10,743 10,743
Concord City Contra Costa -0.34 123,074 122,650 122,650 Danville Town Contra Costa -0.16 43,030 42,960 42,960
El Cerrito City Contra Costa -0.31 25,943 25,862 25,862 Hercules City Contra Costa -0.50 26,357 26,225 26,225
Lafayette City Contra Costa -0.08 25,073 25,054 25,054
Martinez City Contra Costa -0.15 36,871 36,817 36,817
Moraga City Contra Costa -1.98 16,973 16,637 16,637
Oakley City Contra Costa 1.32 46,218 46,826 46,826
Orinda City Contra Costa -0.23 19,395 19,351 19,351
Pinole City Contra Costa -0.45 18,344 18,261 18,261
Pittsburg City Contra Costa 0.64 75,887 76,374 76,374
Pleasant Hill City Contra Costa -0.28 33,694 33,601 33,601 Richmond City Contra Costa -0.24 113,872 113,594 113,594 San Pablo City Contra Costa 0.18 31,450 31,507 31,507
San Ramon City Contra Costa 0.18 83,245 83,391 83,391
Walnut Creek City Contra Costa -0.44 70,238 69,927 69,927 Balance of County Contra Costa -0.20 176,178 175,833 175,917 Incorporated Contra Costa 0.03 981,987 982,308 982,308
County Total Contra Costa 0.00 1,158,165 1,158,141 1,158,225 Crescent City Del Norte -0.69 4,064 4,036 6,056
Balance of County Del Norte -1.44 20,738 20,439 20,488
Incorporated Del Norte -0.69 4,064 4,036 6,056
County Total Del Norte -1.32 24,802 24,475 26,544
FISCAL YEAR 2025-26
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2024 to January 1, 2025 and Total Population January 1, 2025 Placerville City El Dorado 0.14 10,617 10,632 10,642
South Lake Tahoe City El Dorado -0.05 21,033 21,022 21,022 Balance of County El Dorado 0.09 158,862 159,009 159,106 Incorporated El Dorado 0.01 31,650 31,654 31,664
County Total El Dorado 0.08 190,512 190,663 190,770
Clovis City Fresno 1.13 127,674 129,121 129,121
Coalinga City Fresno 0.00 13,419 13,419 17,608
Firebaugh City Fresno 2.40 8,510 8,714 8,714
Fowler City Fresno 3.11 7,436 7,667 7,667
Fresno City Fresno 0.77 552,416 556,690 557,032
Huron City Fresno 7.96 6,421 6,932 6,932
Kerman City Fresno 0.76 17,403 17,535 17,535
Kingsburg City Fresno 0.90 13,167 13,285 13,285
Mendota City Fresno 0.89 12,598 12,710 12,710
Orange Cove City Fresno 0.99 9,622 9,717 9,717
Parlier City Fresno 0.78 14,535 14,649 14,649
Reedley City Fresno 2.52 25,950 26,603 26,603
Sanger City Fresno 1.44 26,652 27,037 27,037
San Joaquin City Fresno 0.03 3,653 3,654 3,654
Selma City Fresno 0.40 24,487 24,585 24,585
Balance of County Fresno 0.17 158,883 159,148 160,204
Incorporated Fresno 0.97 863,943 872,318 876,849
County Total Fresno 0.84 1,022,826 1,031,466 1,037,053
Orland City Glenn 1.17 8,603 8,704 8,704
Willows City Glenn 1.62 6,372 6,475 6,475
Balance of County Glenn 1.33 14,004 14,190 14,190
Incorporated Glenn 1.36 14,975 15,179 15,179
County Total Glenn 1.35 28,979 29,369 29,369
Arcata City Humboldt 1.66 18,691 19,001 19,001
Blue Lake City Humboldt -0.70 1,144 1,136 1,136
Eureka City Humboldt 0.00 25,966 25,967 26,122
Ferndale City Humboldt -0.44 1,367 1,361 1,361
Fortuna City Humboldt -0.38 12,245 12,198 12,198
Rio Dell City Humboldt -0.71 3,255 3,232 3,232
Trinidad City Humboldt -0.67 298 296 296
Balance of County Humboldt -0.73 70,625 70,107 70,471
Incorporated Humboldt 0.36 62,966 63,191 63,346
County Total Humboldt -0.22 133,591 133,298 133,817
Brawley City Imperial 0.84 28,710 28,952 28,952
Calexico City Imperial 0.78 39,762 40,073 40,073
Calipatria City Imperial 0.69 3,646 3,671 6,061
El Centro City Imperial 1.12 45,456 45,966 46,007
Holtville City Imperial 0.57 5,653 5,685 5,685
Imperial City Imperial 1.98 22,422 22,866 22,866
Westmorland City Imperial 0.39 2,076 2,084 2,084
Balance of County Imperial 0.59 31,371 31,557 34,771
Incorporated Imperial 1.06 147,725 149,297 151,728
County Total Imperial 0.98 179,096 180,854 186,499
Bishop City Inyo -0.10 3,854 3,850 3,850
Balance of County Inyo -0.31 14,938 14,892 14,950
Incorporated Inyo -0.10 3,854 3,850 3,850
County Total Inyo -0.27 18,792 18,742 18,800
Arvin City Kern 0.99 19,796 19,991 19,991
Bakersfield City Kern 1.16 414,451 419,238 419,238
California City Kern 0.97 13,189 13,317 13,317
Delano City Kern 1.15 46,036 46,566 52,831
Maricopa City Kern 0.59 1,018 1,024 1,024
McFarland City Kern 2.24 13,902 14,213 14,213
Ridgecrest City Kern 0.25 27,664 27,732 28,386
Shafter City Kern 4.72 22,356 23,412 23,455
Taft City Kern -0.03 7,089 7,087 7,087
Tehachapi City Kern 0.64 9,372 9,432 11,476
Wasco City Kern -2.55 23,447 22,850 26,235
Balance of County Kern 0.05 304,188 304,351 306,708
Incorporated Kern 1.09 598,320 604,862 617,253
County Total Kern 0.74 902,508 909,213 923,961
Avenal City Kings 1.07 9,431 9,532 13,315
Corcoran City Kings 0.88 13,547 13,666 21,612
Hanford City Kings 2.31 59,856 61,238 61,238
Lemoore City Kings 2.10 27,122 27,692 27,692
Balance of County Kings 1.45 25,135 25,500 30,158
Incorporated Kings 1.98 109,956 112,128 123,857
County Total Kings 1.88 135,091 137,628 154,015
Clearlake City Lake 1.01 16,367 16,533 16,533
Lakeport City Lake -0.85 5,069 5,026 5,026
Balance of County Lake -0.61 45,889 45,607 45,695
Incorporated Lake 0.57 21,436 21,559 21,559
County Total Lake -0.24 67,325 67,166 67,254
Susanville City Lassen 1.90 9,199 9,374 12,270
Balance of County Lassen 1.77 14,802 15,064 16,446
Incorporated Lassen 1.90 9,199 9,374 12,270
County Total Lassen 1.82 24,001 24,438 28,716
Agoura Hills City Los Angeles -0.18 19,940 19,904 19,904 Alhambra City Los Angeles 0.22 82,176 82,353 82,374
Arcadia City Los Angeles 0.13 56,044 56,116 56,116
Artesia City Los Angeles 1.33 16,060 16,273 16,359
Avalon City Los Angeles -0.12 3,387 3,383 3,383
Azusa City Los Angeles -1.50 49,736 48,988 48,988
Baldwin Park City Los Angeles 0.23 70,685 70,848 70,848 Bell City Los Angeles -0.15 33,366 33,315 33,315
Bellflower City Los Angeles -0.32 76,902 76,656 76,656
Bell Gardens City Los Angeles 0.09 38,438 38,471 38,471 Beverly Hills City Los Angeles -0.12 31,984 31,945 31,945 Bradbury City Los Angeles 0.78 895 902 902
Burbank City Los Angeles 0.29 105,842 106,146 106,146
Calabasas City Los Angeles -0.26 22,856 22,797 22,797
Carson City Los Angeles 0.07 91,745 91,808 91,812
Cerritos City Los Angeles -0.28 48,005 47,871 47,871
Claremont City Los Angeles -0.02 37,305 37,299 37,299
Commerce City Los Angeles -0.32 12,185 12,146 12,146
Compton City Los Angeles -0.01 93,699 93,692 93,692
Covina City Los Angeles 0.92 50,625 51,090 51,090
Cudahy City Los Angeles -0.34 22,208 22,132 22,132
Culver City Los Angeles 0.16 40,340 40,403 40,403
Diamond Bar City Los Angeles -0.07 53,577 53,539 53,539 Downey City Los Angeles -0.02 111,891 111,871 111,871
Duarte City Los Angeles -0.22 23,798 23,746 23,746
El Monte City Los Angeles 0.82 107,056 107,938 107,986
El Segundo City Los Angeles -0.11 16,976 16,958 16,983
Gardena City Los Angeles 0.14 60,176 60,263 60,263
Glendale City Los Angeles 0.26 191,706 192,212 192,212
Glendora City Los Angeles -0.07 51,289 51,254 51,254
Hawaiian Gardens City Los Angeles 0.07 13,552 13,561 13,561 Hawthorne City Los Angeles -0.25 85,868 85,653 85,653
Hermosa Beach City Los Angeles -0.22 19,055 19,014 19,014 Hidden Hills City Los Angeles 0.23 1,742 1,746 1,746
Huntington Park City Los Angeles -0.32 53,213 53,041 53,051 Industry City Los Angeles -0.23 432 431 431
Inglewood City Los Angeles -0.29 106,617 106,305 106,305 Irwindale City Los Angeles -0.07 1,510 1,509 1,509
La Canada Flintridge City Los Angeles 0.05 20,149 20,160 20,160 La Habra Heights City Los Angeles -0.13 5,510 5,503 5,503 Lakewood City Los Angeles 0.10 80,517 80,596 80,596
La Mirada City Los Angeles -0.17 48,315 48,233 48,233
Lancaster City Los Angeles 1.62 170,661 173,424 177,768 La Puente City Los Angeles 0.10 37,508 37,546 37,546
La Verne City Los Angeles 0.59 32,111 32,300 32,300
Lawndale City Los Angeles -0.20 30,921 30,860 30,860
Lomita City Los Angeles 0.04 20,398 20,407 20,407
Long Beach City Los Angeles 0.44 460,230 462,246 462,561 Los Angeles City Los Angeles 0.44 3,813,575 3,830,479 3,835,263 Lynwood City Los Angeles 0.45 66,360 66,660 66,660
Malibu City Los Angeles -0.18 10,623 10,604 10,604
Manhattan Beach City Los Angeles -0.18 34,111 34,051 34,051 Maywood City Los Angeles -0.25 24,557 24,496 24,496
Monrovia City Los Angeles 1.94 38,181 38,920 38,920
Montebello City Los Angeles 0.79 62,243 62,732 62,732
Monterey Park City Los Angeles -0.13 59,342 59,262 59,269 Norwalk City Los Angeles -0.32 100,585 100,265 101,075
Palmdale City Los Angeles 0.31 166,580 167,097 167,097
Palos Verdes Estates City Los Angeles -0.12 13,014 12,999 12,999 Paramount City Los Angeles -0.08 52,415 52,371 52,371
Pasadena City Los Angeles 0.41 140,054 140,631 140,631
Pico Rivera City Los Angeles 0.00 60,859 60,858 60,858
Pomona City Los Angeles 0.68 152,005 153,042 153,042
Rancho Palos Verdes City Los Angeles -0.25 40,831 40,727 40,727 Redondo Beach City Los Angeles -0.33 68,319 68,091 68,091 Rolling Hills City Los Angeles 0.24 1,673 1,677 1,677
Rolling Hills Estates City Los Angeles -0.14 8,557 8,545 8,545 Rosemead City Los Angeles 0.41 50,296 50,501 50,501
San Dimas City Los Angeles -0.05 34,226 34,209 34,209
San Fernando City Los Angeles 0.62 23,546 23,692 23,692 San Gabriel City Los Angeles 1.00 38,569 38,953 38,953
San Marino City Los Angeles -0.09 12,341 12,330 12,330
Santa Clarita City Los Angeles 0.35 231,573 232,377 232,377 Santa Fe Springs City Los Angeles 0.90 18,341 18,506 18,680 Santa Monica City Los Angeles 0.19 93,034 93,212 93,212 Sierra Madre City Los Angeles -0.30 10,903 10,870 10,870 Signal Hill City Los Angeles -0.31 11,457 11,421 11,421 South El Monte City Los Angeles -0.02 19,538 19,535 19,535 South Gate City Los Angeles 0.08 92,883 92,955 92,955
South Pasadena City Los Angeles 0.06 26,272 26,287 26,287 Temple City Los Angeles 0.70 36,069 36,322 36,322
Torrance City Los Angeles -0.10 143,410 143,261 143,261 Vernon City Los Angeles -0.48 208 207 207
Walnut City Los Angeles 0.74 28,008 28,214 28,214
West Covina City Los Angeles -0.21 109,657 109,428 109,428 West Hollywood City Los Angeles 0.10 35,250 35,284 35,284 Westlake Village City Los Angeles -0.31 7,943 7,918 7,918 Whittier City Los Angeles 0.03 87,820 87,850 87,850
Balance of County Los Angeles 0.18 1,001,862 1,003,674 1,004,490 Incorporated Los Angeles 0.31 8,834,429 8,861,693 8,872,321 County Total Los Angeles 0.30 9,836,291 9,865,367 9,876,811 Chowchilla City Madera -1.64 13,729 13,504 18,742
Madera City Madera -0.85 67,013 66,443 66,443
Balance of County Madera 2.24 75,718 77,414 77,414
Incorporated Madera -0.98 80,742 79,947 85,185
County Total Madera 0.58 156,460 157,361 162,599
Belvedere City Marin 0.29 2,052 2,058 2,058
Corte Madera City Marin 0.09 9,947 9,956 9,966
Fairfax City Marin 0.09 7,400 7,407 7,407
Larkspur City Marin -0.15 12,750 12,731 12,731
Mill Valley City Marin 0.07 13,679 13,688 13,688
Novato City Marin 0.22 51,372 51,486 51,690
Ross City Marin 0.83 2,290 2,309 2,309
San Anselmo City Marin 0.26 12,519 12,551 12,551
San Rafael City Marin -0.05 59,917 59,885 59,885
Sausalito City Marin 0.07 6,936 6,941 6,941
Tiburon Town Marin 0.18 8,894 8,910 8,910
Balance of County Marin 0.29 63,257 63,441 66,414
Incorporated Marin 0.09 187,756 187,922 188,136
County Total Marin 0.14 251,013 251,363 254,550
Balance of County Mariposa -0.21 16,897 16,861 16,917
County Total Mariposa -0.21 16,897 16,861 16,917
Fort Bragg City Mendocino -0.10 7,194 7,187 7,187
Point Arena City Mendocino 1.57 445 452 452
Ukiah City Mendocino 0.60 16,227 16,325 16,325
Willits City Mendocino -0.31 4,853 4,838 4,838
Balance of County Mendocino -0.09 61,031 60,975 61,025
Incorporated Mendocino 0.29 28,719 28,802 28,802
County Total Mendocino 0.03 89,750 89,777 89,827
Atwater City Merced -0.18 31,921 31,862 31,862
Dos Palos City Merced -0.28 5,728 5,712 5,712
Gustine City Merced -0.23 6,035 6,021 6,021
Livingston City Merced -0.07 14,451 14,441 14,441
Los Banos City Merced 1.42 48,213 48,896 48,896
Merced City Merced 5.26 93,138 98,039 98,039
Balance of County Merced -4.65 91,101 86,861 88,109
Incorporated Merced 2.75 199,486 204,971 204,971
County Total Merced 0.43 290,587 291,832 293,080
Alturas City Modoc -0.19 2,662 2,657 2,657
Balance of County Modoc -0.22 5,847 5,834 5,834
Incorporated Modoc -0.19 2,662 2,657 2,657
County Total Modoc -0.21 8,509 8,491 8,491
Mammoth Lakes Town Mono -1.47 7,145 7,040 7,040
Balance of County Mono -1.75 5,647 5,548 5,644
Incorporated Mono -1.47 7,145 7,040 7,040
County Total Mono -1.59 12,792 12,588 12,684
Carmel-by-the-Sea City Monterey -0.23 3,056 3,049 3,049 Del Rey Oaks City Monterey -0.32 1,551 1,546 1,546
Gonzales City Monterey -0.30 8,459 8,434 8,434
Greenfield City Monterey 1.18 20,543 20,785 20,785
King City Monterey 1.09 14,189 14,344 14,344
Marina City Monterey 1.12 22,831 23,086 23,086
Monterey City Monterey -0.33 24,282 24,202 27,273
Pacific Grove City Monterey -0.43 14,935 14,871 14,871
Salinas City Monterey -0.24 161,039 160,645 160,645
Sand City Monterey -0.27 374 373 373
Seaside City Monterey 1.35 26,367 26,724 32,019
Soledad City Monterey 1.80 20,005 20,366 27,310
Balance of County Monterey -0.14 105,111 104,962 105,096 Incorporated Monterey 0.25 317,631 318,425 333,735
County Total Monterey 0.15 422,742 423,387 438,831
American Canyon City Napa 2.94 21,757 22,396 22,396
Calistoga City Napa -0.41 5,181 5,160 5,160
Napa City Napa 0.28 77,520 77,736 77,736
St Helena City Napa -0.13 5,356 5,349 5,349
Yountville City Napa -0.54 2,056 2,045 2,638
Balance of County Napa -0.30 21,840 21,775 22,845
Incorporated Napa 0.73 111,870 112,686 113,279
County Total Napa 0.56 133,710 134,461 136,124
Grass Valley City Nevada -0.72 13,461 13,364 13,364
Nevada City Nevada -0.86 3,365 3,336 3,336
Truckee Town Nevada 0.03 16,923 16,928 16,928
Balance of County Nevada -0.63 67,092 66,667 66,726
Incorporated Nevada -0.36 33,749 33,628 33,628
County Total Nevada -0.54 100,841 100,295 100,354
Aliso Viejo City Orange -0.45 50,442 50,213 50,213
Anaheim City Orange -0.08 341,967 341,686 341,773
Brea City Orange -0.42 48,101 47,900 47,900
Buena Park City Orange -0.13 82,772 82,667 82,667
Costa Mesa City Orange 0.25 110,048 110,321 110,321
Cypress City Orange -0.13 49,563 49,499 49,499
Dana Point City Orange -0.37 32,850 32,730 32,730
Fountain Valley City Orange -0.09 56,612 56,560 56,560
Fullerton City Orange -0.31 141,909 141,469 141,469
Garden Grove City Orange 0.12 171,260 171,470 171,492
Huntington Beach City Orange -0.19 193,510 193,134 193,134 Irvine City Orange 0.79 316,119 318,629 318,629
Laguna Beach City Orange 0.02 22,759 22,763 22,763
Laguna Hills City Orange -0.41 30,435 30,309 30,309
Laguna Niguel City Orange 0.65 64,834 65,257 65,257
Laguna Woods City Orange -0.46 17,262 17,183 17,183
La Habra City Orange -0.06 61,236 61,202 61,202
Lake Forest City Orange 0.10 87,553 87,639 87,639
La Palma City Orange -0.44 15,177 15,110 15,110
Los Alamitos City Orange -0.32 12,044 12,006 12,006
Mission Viejo City Orange -0.28 91,993 91,740 91,740
Newport Beach City Orange -0.41 82,995 82,654 82,654
Orange City Orange 0.95 138,403 139,724 139,724
Placentia City Orange 2.52 52,653 53,982 53,982
Rancho Santa Margarita City Orange -0.46 46,553 46,341 46,341 San Clemente City Orange -0.35 63,085 62,865 62,865
San Juan Capistrano City Orange 0.23 35,247 35,329 35,329 Santa Ana City Orange 0.68 313,210 315,325 315,325
Seal Beach City Orange -0.47 24,439 24,325 24,400
Stanton City Orange -0.06 40,576 40,552 40,552
Tustin City Orange -0.15 79,449 79,326 79,326
Villa Park City Orange -0.21 5,750 5,738 5,738
Westminster City Orange 0.13 90,181 90,295 90,295
Yorba Linda City Orange -0.46 66,573 66,267 66,267
Balance of County Orange 0.54 132,313 133,023 133,033
Incorporated Orange 0.15 3,037,560 3,042,210 3,042,394
County Total Orange 0.17 3,169,873 3,175,233 3,175,427
Auburn City Placer -1.27 13,457 13,286 13,286
Colfax City Placer -1.48 2,026 1,996 1,996
Lincoln City Placer 0.65 54,167 54,520 54,520
Loomis Town Placer -0.59 6,729 6,689 6,689
Rocklin City Placer 0.28 72,967 73,172 73,172
Roseville City Placer 0.76 157,304 158,494 158,494
Balance of County Placer -0.44 113,786 113,289 113,289
Incorporated Placer 0.49 306,650 308,157 308,157
County Total Placer 0.24 420,436 421,446 421,446
Portola City Plumas -0.94 2,118 2,098 2,098
Balance of County Plumas 0.62 16,684 16,787 16,787
Incorporated Plumas -0.94 2,118 2,098 2,098
County Total Plumas 0.44 18,802 18,885 18,885
Banning City Riverside -0.37 32,068 31,949 31,949
Beaumont City Riverside 1.78 58,665 59,708 59,708
Blythe City Riverside -0.95 12,593 12,473 15,400
Calimesa City Riverside -0.79 11,082 10,994 10,994
Canyon Lake City Riverside -0.74 11,086 11,004 11,004
Cathedral City Riverside -0.67 51,962 51,615 51,651
Coachella City Riverside 0.76 44,050 44,384 44,384
Corona City Riverside -0.32 159,667 159,157 159,157
Desert Hot Springs City Riverside 0.02 33,255 33,262 33,262 Eastvale City Riverside -0.68 70,274 69,799 69,799
Hemet City Riverside 0.20 91,751 91,934 91,934
Indian Wells City Riverside 0.06 4,859 4,862 4,862
Indio City Riverside -0.17 92,693 92,539 92,539
Jurupa Valley City Riverside -0.90 106,830 105,870 105,928 Lake Elsinore City Riverside 0.97 72,934 73,638 73,783
La Quinta City Riverside -0.90 39,148 38,796 38,796
Menifee City Riverside 1.30 113,837 115,316 115,316
Moreno Valley City Riverside -0.27 211,389 210,823 210,823 Murrieta City Riverside 0.44 111,299 111,789 111,789
Norco City Riverside -0.63 22,563 22,421 25,221
Palm Desert City Riverside 0.04 51,961 51,980 51,980
Palm Springs City Riverside -0.63 44,760 44,476 44,476
Perris City Riverside 0.36 80,947 81,240 81,240
Rancho Mirage City Riverside -0.62 17,227 17,120 17,120 Riverside City Riverside -0.37 321,479 320,278 320,337
San Jacinto City Riverside 0.10 54,936 54,990 54,990
Temecula City Riverside 1.19 110,898 112,220 112,220
Wildomar City Riverside 0.05 37,060 37,077 37,077
Balance of County Riverside 1.53 411,338 417,646 417,901 Incorporated Riverside 0.02 2,071,273 2,071,714 2,077,739 County Total Riverside 0.27 2,482,611 2,489,360 2,495,640 Citrus Heights City Sacramento -0.43 86,655 86,280 86,280 Elk Grove City Sacramento 1.24 180,599 182,842 182,842
Folsom City Sacramento 3.69 84,416 87,532 92,577
Galt City Sacramento 1.38 25,738 26,092 26,092
Isleton City Sacramento -0.65 769 764 764
Rancho Cordova City Sacramento 3.16 82,837 85,451 85,451 Sacramento City Sacramento 0.31 526,327 527,979 527,979 Balance of County Sacramento -0.26 604,360 602,760 602,760 Incorporated Sacramento 0.97 987,341 996,940 1,001,985
County Total Sacramento 0.50 1,591,701 1,599,700 1,604,745 Hollister City San Benito 0.51 43,272 43,492 43,492
San Juan Bautista City San Benito -0.81 2,095 2,078 2,078 Balance of County San Benito 0.50 21,147 21,252 21,252
Incorporated San Benito 0.45 45,367 45,570 45,570
County Total San Benito 0.46 66,514 66,822 66,822
Adelanto City San Bernardino 1.42 36,629 37,150 37,150
Apple Valley Town San Bernardino -0.11 75,339 75,255 75,262 Barstow City San Bernardino -0.55 24,634 24,498 24,811
Big Bear Lake City San Bernardino -0.48 4,977 4,953 4,953 Chino City San Bernardino 1.76 90,123 91,712 95,206
Chino Hills City San Bernardino -0.18 77,452 77,314 77,314 Colton City San Bernardino -0.42 53,505 53,278 53,278
Fontana City San Bernardino 0.96 217,084 219,172 219,172 Grand Terrace City San Bernardino -0.51 12,868 12,803 12,803 Hesperia City San Bernardino 0.54 101,248 101,792 101,792 Highland City San Bernardino 1.16 56,436 57,088 57,088
Loma Linda City San Bernardino -0.19 25,323 25,276 25,322 Montclair City San Bernardino -0.38 37,670 37,526 37,526 Needles City San Bernardino -0.54 4,817 4,791 4,791
Ontario City San Bernardino 0.84 182,875 184,404 184,404 Rancho Cucamonga City San Bernardino 0.44 175,227 175,992 175,992 Redlands City San Bernardino 0.10 73,416 73,488 73,488
Rialto City San Bernardino 1.09 104,426 105,565 105,565 San Bernardino City San Bernardino 0.08 221,218 221,387 222,727 Twentynine Palms City San Bernardino 7.84 14,775 15,934 24,257 Upland City San Bernardino -0.23 79,326 79,140 79,140
Victorville City San Bernardino 0.49 135,981 136,652 141,013 Yucaipa City San Bernardino 0.51 54,561 54,838 54,838
Yucca Valley Town San Bernardino 0.03 22,021 22,027 22,027 Balance of County San Bernardino -0.22 290,454 289,811 297,505 Incorporated San Bernardino 0.54 1,881,931 1,892,035 1,909,919 County Total San Bernardino 0.44 2,172,385 2,181,846 2,207,424 Carlsbad City San Diego -0.24 116,652 116,368 116,368
Chula Vista City San Diego 0.19 280,590 281,137 281,401 Coronado City San Diego -0.41 17,471 17,400 22,610
Del Mar City San Diego 0.05 3,948 3,950 3,950
El Cajon City San Diego -0.47 105,429 104,932 104,932
Encinitas City San Diego 0.17 61,851 61,956 61,956
Escondido City San Diego -0.63 151,386 150,425 150,425
Imperial Beach City San Diego -0.35 26,462 26,369 26,369 La Mesa City San Diego -0.27 61,072 60,908 60,908
Lemon Grove City San Diego 0.93 27,903 28,163 28,163
National City San Diego 0.07 56,900 56,941 58,965
Oceanside City San Diego 0.44 173,569 174,340 174,340
Poway City San Diego 0.86 49,948 50,379 50,379
San Diego City San Diego 1.15 1,378,448 1,394,234 1,408,937 San Marcos City San Diego -0.14 97,261 97,123 97,123
Santee City San Diego -0.60 59,928 59,568 59,568
Solana Beach City San Diego -0.52 13,054 12,986 12,986
Vista City San Diego -0.14 101,740 101,599 101,599
Balance of County San Diego -0.19 470,041 469,135 509,160 Incorporated San Diego 0.54 2,783,612 2,798,778 2,820,979 County Total San Diego 0.44 3,253,653 3,267,913 3,330,139 San Francisco City San Francisco -0.39 844,789 841,467 842,027 Incorporated San Francisco -0.39 844,789 841,467 842,027 County Total San Francisco -0.39 844,789 841,467 842,027 Escalon City San Joaquin -1.43 7,337 7,232 7,232
Lathrop City San Joaquin 4.03 37,102 38,596 38,596
Lodi City San Joaquin -0.25 67,262 67,093 67,093
Manteca City San Joaquin 1.76 92,116 93,733 93,733
Mountain House City San Joaquin 0.00 28,795 28,795
Ripon City San Joaquin -1.33 15,966 15,753 15,753
Stockton City San Joaquin -0.77 323,325 320,847 320,877 Tracy City San Joaquin 0.73 97,501 98,215 98,215
Balance of County San Joaquin -16.29 159,392 133,422 135,562 Incorporated San Joaquin 4.63 640,609 670,264 670,294
County Total San Joaquin 0.46 800,001 803,686 805,856
Arroyo Grande City San Luis Obispo -0.64 18,025 17,910 17,910 Atascadero City San Luis Obispo -0.72 29,305 29,093 30,134 El Paso de Robles City San Luis Obispo 0.24 30,988 31,061 31,061 Grover Beach City San Luis Obispo -0.35 12,455 12,411 12,411 Morro Bay City San Luis Obispo 0.00 10,404 10,404 10,404 Pismo Beach City San Luis Obispo -0.69 7,858 7,804 7,804 San Luis Obispo City San Luis Obispo 1.52 48,791 49,534 49,534 Balance of County San Luis Obispo -0.61 118,580 117,852 120,079 Incorporated San Luis Obispo 0.25 157,826 158,217 159,258 County Total San Luis Obispo -0.12 276,406 276,069 279,337 Atherton Town San Mateo -0.33 7,030 7,007 7,007
Belmont City San Mateo 3.90 27,146 28,206 28,206
Brisbane City San Mateo -0.51 4,700 4,676 4,676
Burlingame City San Mateo 2.55 30,768 31,552 31,552
Colma Town San Mateo -0.70 1,421 1,411 1,411
Daly City San Mateo -0.16 102,315 102,155 102,155
East Palo Alto City San Mateo -0.65 29,325 29,133 29,133 Foster City San Mateo -0.60 32,856 32,658 32,658
Half Moon Bay City San Mateo -0.26 11,333 11,303 11,303 Hillsborough Town San Mateo 0.38 11,211 11,254 11,254
Menlo Park City San Mateo -0.35 33,291 33,175 33,311
Millbrae City San Mateo -0.53 23,288 23,164 23,164
Pacifica City San Mateo -0.41 37,365 37,212 37,217
Portola Valley Town San Mateo -0.02 4,286 4,285 4,285
Redwood City San Mateo -0.57 82,546 82,073 82,073
San Bruno City San Mateo 0.29 42,507 42,631 42,631
San Carlos City San Mateo -0.45 29,669 29,535 29,535
San Mateo City San Mateo 0.09 104,221 104,315 104,315
South San Francisco City San Mateo 0.39 65,146 65,397 65,397 Woodside Town San Mateo 0.58 5,176 5,206 5,206
Balance of County San Mateo -0.32 62,047 61,848 61,848
Incorporated San Mateo 0.11 685,600 686,348 686,489
County Total San Mateo 0.07 747,647 748,196 748,337
Buellton City Santa Barbara 2.23 4,980 5,091 5,091
Carpinteria City Santa Barbara 0.09 12,723 12,735 12,735 Goleta City Santa Barbara 0.45 32,601 32,747 32,747
Guadalupe City Santa Barbara 1.81 8,694 8,851 8,851
Lompoc City Santa Barbara 0.05 40,518 40,538 43,424
Santa Barbara City Santa Barbara 0.31 86,159 86,422 86,451 Santa Maria City Santa Barbara 1.19 110,885 112,208 112,208 Solvang City Santa Barbara 0.47 5,728 5,755 5,755
Balance of County Santa Barbara 0.52 136,287 136,992 139,870 Incorporated Santa Barbara 0.68 302,288 304,347 307,262 County Total Santa Barbara 0.63 438,575 441,339 447,132 Campbell City Santa Clara -0.22 43,377 43,281 43,281
Cupertino City Santa Clara -0.09 59,887 59,831 59,831
Gilroy City Santa Clara 1.10 61,402 62,076 62,205
Los Altos City Santa Clara 0.62 31,523 31,720 31,720
Los Altos Hills Town Santa Clara 0.33 8,520 8,548 8,548 Los Gatos Town Santa Clara -0.43 33,500 33,355 33,355
Milpitas City Santa Clara -0.59 82,401 81,915 81,915
Monte Sereno City Santa Clara 0.66 3,613 3,637 3,637
Morgan Hill City Santa Clara 0.06 46,573 46,599 46,599
Mountain View City Santa Clara -0.19 86,674 86,513 86,513 Palo Alto City Santa Clara 0.31 68,550 68,763 68,794
San Jose City Santa Clara -0.08 980,174 979,415 979,415 Santa Clara City Santa Clara 0.57 133,829 134,587 134,587 Saratoga City Santa Clara 0.29 31,020 31,110 31,110
Sunnyvale City Santa Clara 0.46 158,948 159,673 159,673 Balance of County Santa Clara -0.21 90,602 90,412 91,076 Incorporated Santa Clara 0.06 1,829,991 1,831,023 1,831,183 County Total Santa Clara 0.04 1,920,593 1,921,435 1,922,259 Capitola City Santa Cruz -0.35 9,704 9,670 9,670
Santa Cruz City Santa Cruz 0.18 62,861 62,972 62,972
Scotts Valley City Santa Cruz -0.04 11,836 11,831 11,831 Watsonville City Santa Cruz 0.47 50,860 51,101 51,101
Balance of County Santa Cruz -0.04 128,130 128,079 128,136 Incorporated Santa Cruz 0.23 135,261 135,574 135,574
County Total Santa Cruz 0.10 263,391 263,653 263,710
Anderson City Shasta -0.73 11,048 10,967 10,967
Redding City Shasta 0.09 93,330 93,413 93,534
Shasta Lake City Shasta -0.74 10,209 10,133 10,133
Balance of County Shasta -0.49 65,836 65,514 65,567
Incorporated Shasta -0.06 114,587 114,513 114,634
County Total Shasta -0.22 180,423 180,027 180,201
Loyalton City Sierra -0.27 732 730 730
Balance of County Sierra -0.20 2,445 2,440 2,440
Incorporated Sierra -0.27 732 730 730
County Total Sierra -0.22 3,177 3,170 3,170
Dorris City Siskiyou -0.84 837 830 830
Dunsmuir City Siskiyou -0.91 1,643 1,628 1,628
Etna City Siskiyou -0.75 667 662 662
Fort Jones City Siskiyou -0.75 668 663 663
Montague City Siskiyou -0.42 1,200 1,195 1,195
Mount Shasta City Siskiyou -0.72 3,202 3,179 3,179
Tulelake City Siskiyou -0.82 858 851 851
Weed City Siskiyou 0.30 2,708 2,716 2,716
Yreka City Siskiyou 0.64 7,829 7,879 7,879
Balance of County Siskiyou -0.49 23,772 23,656 23,708
Incorporated Siskiyou -0.05 19,612 19,603 19,603
County Total Siskiyou -0.29 43,384 43,259 43,311
Benicia City Solano -0.58 26,347 26,195 26,195
Dixon City Solano 2.89 19,608 20,174 20,174
Fairfield City Solano -0.07 116,199 116,112 120,720
Rio Vista City Solano 1.78 10,157 10,338 10,338
Suisun City Solano -0.13 29,074 29,036 29,036
Vacaville City Solano 0.04 97,347 97,382 103,181
Vallejo City Solano -0.48 122,791 122,207 122,207
Balance of County Solano -0.27 17,285 17,238 17,988
Incorporated Solano -0.02 421,523 421,444 431,851
County Total Solano -0.03 438,808 438,682 449,839
Cloverdale City Sonoma -0.97 8,763 8,678 8,678
Cotati City Sonoma -0.86 7,353 7,290 7,290
Healdsburg City Sonoma -0.35 11,010 10,972 10,972
Petaluma City Sonoma 0.40 58,858 59,094 59,094
Rohnert Park City Sonoma -0.06 44,089 44,062 44,062
Santa Rosa City Sonoma 0.80 177,043 178,452 178,452
Sebastopol City Sonoma 0.40 7,338 7,367 7,367
Sonoma City Sonoma -0.83 10,595 10,507 10,507
Windsor Town Sonoma -0.17 25,669 25,625 25,625
Balance of County Sonoma -0.46 130,591 129,985 130,801
Incorporated Sonoma 0.38 350,718 352,047 352,047
County Total Sonoma 0.15 481,309 482,032 482,848
Ceres City Stanislaus -0.35 49,480 49,305 49,305
Hughson City Stanislaus 2.26 7,801 7,977 7,977
Modesto City Stanislaus 0.03 219,705 219,765 219,765
Newman City Stanislaus 1.05 12,260 12,389 12,389
Oakdale City Stanislaus 0.28 23,167 23,231 23,231
Patterson City Stanislaus 3.57 24,977 25,868 25,868
Riverbank City Stanislaus 3.16 25,290 26,090 26,090
Turlock City Stanislaus 0.31 71,997 72,219 72,219
Waterford City Stanislaus 0.09 9,161 9,169 9,169
Balance of County Stanislaus -0.02 109,776 109,752 109,752 Incorporated Stanislaus 0.49 443,838 446,013 446,013
County Total Stanislaus 0.39 553,614 555,765 555,765
Live Oak City Sutter 0.58 9,602 9,658 9,658
Yuba City Sutter 0.96 69,781 70,453 70,453
Balance of County Sutter 0.49 20,048 20,146 20,146
Incorporated Sutter 0.92 79,383 80,111 80,111
County Total Sutter 0.83 99,431 100,257 100,257
Corning City Tehama 1.30 8,162 8,268 8,268
Red Bluff City Tehama 0.11 14,450 14,466 14,466
Tehama City Tehama 0.23 427 428 428
Balance of County Tehama -0.41 41,702 41,532 41,665
Incorporated Tehama 0.53 23,039 23,162 23,162
County Total Tehama -0.07 64,741 64,694 64,827
Balance of County Trinity -0.16 15,850 15,825 15,884
County Total Trinity -0.16 15,850 15,825 15,884
Dinuba City Tulare 0.67 25,852 26,025 26,025
Exeter City Tulare -0.19 10,252 10,233 10,233
Farmersville City Tulare -0.29 10,422 10,392 10,392
Lindsay City Tulare -0.07 12,734 12,725 12,725
Porterville City Tulare 0.04 63,427 63,455 63,622
Tulare City Tulare 2.02 71,557 73,002 73,002
Visalia City Tulare 0.69 145,714 146,722 146,978
Woodlake City Tulare 2.72 7,793 8,005 8,005
Balance of County Tulare 0.54 135,452 136,180 136,227
Incorporated Tulare 0.81 347,751 350,559 350,982
County Total Tulare 0.73 483,203 486,739 487,209
Sonora City Tuolumne -0.74 5,154 5,116 5,116
Balance of County Tuolumne -0.27 46,963 46,836 49,241
Incorporated Tuolumne -0.74 5,154 5,116 5,116
County Total Tuolumne -0.32 52,117 51,952 54,357
Camarillo City Ventura -0.78 69,467 68,927 68,927
Fillmore City Ventura -0.35 17,095 17,035 17,035
Moorpark City Ventura -0.77 35,023 34,754 34,754
Ojai City Ventura 0.04 7,556 7,559 7,559
Oxnard City Ventura 0.18 198,384 198,733 198,733
Port Hueneme City Ventura -0.81 19,024 18,870 20,838
San Buenaventura (Ventura) City Ventura 0.58 108,304 108,930 108,985 Santa Paula City Ventura 0.47 31,511 31,658 31,658
Simi Valley City Ventura 0.00 124,640 124,645 124,815
Thousand Oaks City Ventura -0.73 123,372 122,468 122,468 Balance of County Ventura 1.49 90,070 91,416 93,233
Incorporated Ventura -0.11 734,376 733,579 735,772
County Total Ventura 0.07 824,446 824,995 829,005
Davis City Yolo -0.43 65,708 65,423 65,423
West Sacramento City Yolo 0.85 54,938 55,403 55,403
Winters City Yolo 4.14 7,702 8,021 8,021
Woodland City Yolo 0.35 61,406 61,623 61,623
Balance of County Yolo 1.83 34,334 34,963 34,963
Incorporated Yolo 0.38 189,754 190,470 190,470
County Total Yolo 0.60 224,088 225,433 225,433
Marysville City Yuba -0.84 12,825 12,717 12,717
Wheatland City Yuba 2.29 3,922 4,012 4,012
Balance of County Yuba 0.57 65,454 65,828 68,294
Incorporated Yuba -0.11 16,747 16,729 16,729
County Total Yuba 0.43 82,201 82,557 85,023
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and v CITY COUNCIL ACTION:
______________________________________________________________________ ______________________________________________________________________ AGENDA ITEM # A.6.

STAFF REPORT

CITY OF SOLANA BEACH
TO: Honorable Mayor and City Councilmembers
FROM: Alyssa Muto, City Manager
MEETING DATE: June 18, 2025
ORIGINATING DEPT: City Manager’s Department – Dan King, Assistant City Manager
SUBJECT: City Council Adoption of Fiscal Year 2025/2026 Work Plan BACKGROUND:

The Fiscal Year 2025/2026 Work Plan is a guiding document that includes all of the City Council’s (Council) priority projects. This year’s Work Plan has been revised to more closely align with the City’s recently adopted Legislative Policy. The new categories that the priority items are placed into are Affordable Housing and Livable Communities; Transportation and Mobility; Environmental Sustainability and Energy; Youth, Senior and Community Well-Being; and General Governance and Fiscal Responsibility.

On April 23, 2025, the Council held a public meeting to discuss the draft Fiscal Year 2025/2026 Work Plan and to accept public comments. At that meeting, Council recommended changes to the draft Work Plan presented by City Staff. The revised Work Plan was then brought back to Council at the May 21, 2025, City Council meeting, where additional revisions were directed by the Council.

This item is before Council to consider adopting the final FY 2025/2026 Work Plan based on the feedback received from the Council at the April 23, 2025, and May 21, 2025, Work Plan meetings.

DISCUSSION:

The five policy areas outlined in the Work Plan reflect Solana Beach's commitment to being proactive in its legislative advocacy, addressing immediate concerns, and planning for the future. The City will continue to advocate for legislation that strengthens local governance, secures resources for essential services, and fosters collaborative solutions with regional and state partners. Additionally, the City remains dedicated to advancing policies that protect the health, safety, and quality of life of its residents, while promoting a fiscally responsible and effective municipal operation.

June 18, 2025
Final FY 2025/2026 Work Plan

Page 2 of 2 ends

The revised final Fiscal Year 2025/2026 Work Plan (Attachment 1) is being brought back for final consideration for approval by the Council. The Fiscal Year 2024/25 table of “Significant Accomplishments” has also been added to this final Work Plan.

CEQA COMPLIANCE STATEMENT:

Not a project as defined by CEQA.

FISCAL IMPACT:

Funding for the projects contained in the final Fiscal Year 2025/26 Work Plan vary from project to project. Some of the projects have been budgeted for; while others do not currently have funding identified at this time. The funding identified in this Work Plan is consistent with the funding that has been proposed in the FY 2025/26 and FY 2026/27 Budget.

WORK PLAN:

This item is the comprehensive annual update to the Work Plan for FY 2025/26.

OPTIONS:
• Adopt the final Fiscal Year 2025/2026 Work Plan.
• Give additional direction to Staff on further modifications. • Do not adopt the final Fiscal Year 2025/2026 Work Plan.

CITY MANAGER RECOMMENDATION:

The City Manager recommends that the City Council consider and adopt the final Fiscal Year 2025/2026 Work Plan.

CITY MANAGER’S RECOMMENDATION:

Approve Department Recommendation.
_________________________
Alyssa Muto, City Manager
Attachment

1. Final Fiscal Year 2025/2026 Work Plan

COUNCIL WORK PLAN

FISCAL YEAR
2025-2026
Table of Contents
CITY MANAGER’S REPORT 3
MISSION STATEMENT 4
LEGISLATIVE PRIORITIES 4

1. AFFORDABLE HOUSING AND LIVABLE COMMUNITIES 5

2. TRANSPORTATION AND MOBILITY 9

3. ENVIRONMENTAL SUSTAINABILITY AND ENERGY 16

4. YOUTH, SENIOR, AND COMMUNITY WELL-BEING 23

5. GENERAL GOVERNANCE AND FISCAL RESPONSIBILITY 29
ONGOING PRIORITIES & MonitORING 37
WORK PLAN ACCOMPLISHMENTS FOR FISCAL YEAR 2024/25 39
CITY MANAGER’S REPORT
As the City embarks on a new fiscal year, I am proud to bring forward the 2025–2026 City of Solana Beach Work Plan to provide a transparent and clear overview of our projects and programs that are of priority in the year ahead. This past year marked my first as your City Manager, and I am incredibly grateful for the opportunity to serve the residents and businesses of Solana Beach. I want to take this opportunity to recognize the community spirit that exists in our residents and families who continue to make the City of Solana Beach the best place to work, live and flourish through our years.

Despite the many uncertainties that surround us—economic shifts, environmental extremes, and ever changing and evolving needs—Solana Beach remains fiscally healthy and well-positioned to meet the challenges of the future. Our stability allows us not only to maintain high-quality services, but also to plan boldly and responsibly for what’s ahead.

Together with the City Council, City staff, and our many community partners, we made meaningful progress last year that directly impacted neighborhoods and people, while laying the groundwork for some important and exciting projects and programs to come. In FY 2024–2025, we saw important accomplishments: from record investments in our roads and sewer and stormwater systems, progress on sustainability and resilience goals and actions, to the development of communitycentered programs and the planning of future City and community facilities. These successes were possible because of our hard work and the commitment across our organization to engaged and thoughtful planning and excellent performance.

In the year ahead, our Work Plan reflects a balance of today’s needs and the future demands. We will continue advancing large-scale, long-term facilities planning efforts that are essential to the City’s future, such as the Marine Safety Center and the expansion of La Colonia Park to include a Youth and Senior Community Center, while also delivering essential and life-changing smaller projects that bring immediate value to residents and visitors—such as the Lomas Santa Fe Corridor Project, Fletcher Cove Ramp and Shower improvements, and an extension to the Coastal Rail Trail to connect with a future crossing at Highway 101.

The City will continue to advocate for legislation and funding to maintain our neighborhoods and help our public funds stretch a little farther. Initiatives such as the Healthy and Livable Communities Program will target ways that the City and our residents can support each other through development of increased multi-generational recreational and transportation programs. The continued expansion of the City of Kindness with Solana Beach Cares – Seasonal Kindness Drives for those in need in our community will further the positive and collaborative attitudes that we wish to foster in our City that can create a ripple effect into our jobs, families and friendships, reaching far beyond our City limits.

The Staff at the City thank each of you for your continued trust and support as we work every day to plan, improve and maintain our community. I look forward to building on the momentum of this past year as we continue working together to ensure Solana Beach thrives today and for generations to come.

Alyssa Muto
City Manager

MISSION STATEMENT
To have an efficient and effective City Government that works to balance fiscal sustainability while maintaining environmental sustainability, quality of life and community character.

LEGISLATIVE PRIORITIES
The City of Solana Beach is a vibrant coastal community committed to preserving its unique character while addressing the evolving needs of its residents. The City recently adopted a Legislative Policy that serves as a guiding framework for the City Council’s advocacy efforts on key priorities that enhance the quality of life for all residents. Through this policy, the City will actively pursue legislation and funding opportunities that advance local priorities such as affordable housing and livable communities, transportation solutions, environmental sustainability, and the well-being of youth, seniors, and the broader community. By taking thoughtful and strategic legislative action, we will ensure that Solana Beach continues to be a great place to live—a community that is safe, welcoming, and full of opportunity for all its residents.

Following review of all submitted legislation for the 2024-2025 California Legislative Session, and with consideration of this Council 2025 Work Plan, there are five recommended areas for legislative policy. These areas are overarching to cover sub-topical priorities that align with the City’s values and long-term goals. By establishing these key areas of focus, the City of Solana Beach seeks to enhance public safety, promote sustainable community growth, support the wellbeing of residents, and ensure efficient, accountable governance.

The five policy areas outlined in this platform reflect Solana Beach's commitment to being proactive in its legislative advocacy, addressing immediate concerns, and planning for the future.

The City will continue to advocate for legislation that strengthens local governance, secures resources for essential services, and fosters collaborative solutions with regional and state partners. Additionally, the City remains dedicated to advancing policies that protect the health, safety, and quality of life of its residents, while promoting a fiscally responsible and effective municipal operation.

1. Affordable Housing and Livable Communities

2. Transportation and Mobility

3. Environmental Sustainability and Energy

4. Youth, Senior, and Community Well-being

5. General Governance and Fiscal Responsibility
Affordable Housing and Livable Communities

1. AFFORDABLE HOUSING AND LIVABLE

COMMUNITIES

1. General Plan Updates
Summary: The City’s first General Plan was originally adopted in 1988. Individual elements of the General Plan, including Land Use, Circulation, Noise, and Housing have been reviewed and revised over time. The City’s Housing Element was last updated in 2021, which outlines policies and goals for the housing planning period from April 15, 2021, through April 14, 2029. Annual reporting is conducted to monitor progress in implementing the Housing Element. As the next step in the General Plan update process, the City is required to update its Safety Element to maintain consistency with the recently updated San Diego County Hazard Mitigation Plan, comply with new State legislative requirements, and align with SANDAG’s Regional Plan.

FY 2025/26 Actions:

A. Issue RFI for 1st City housing site (Pearl Project).

B. Release 2nd RFP for City housing site.

C. Develop permit ready ADU program.

D. Update Zoning Ordinance related to first floor commercial uses.

Summary of Budgetary Projections for FY 2025/26: The implementation of the policies and programs contained in the City’s Housing Element is a multi-year project. The costs are predominantly Staff time to draft and implement policies and programs. Where possible Staff will seek additional grant funding to assist with the implementation of this project. With respect to the ADU Permit Ready Program, the City projects an approximate cost of $100,000 for the purchase of plan sets for use by residents for standard studio and onebedroom ADU designs. No additional funding is expected to be needed for FY 2025/26.

2. Customer Assistance Program Improvements
Summary:

Customer assistance and responsiveness to complaints remain a top priority for the City.

Building on the need for conversions during the Covid-19 pandemic, in recent years the City has implemented a series of technological and procedural enhancements to better serve residents, businesses, and visitors. These improvements include upgrades to the City’s permit tracking software (TRAKiT), deployment of the My Community App for reporting issues, the creation of permit processing flowcharts to guide customers through the permitting process, and the launch of an online system for electronic plan submittal and review.

To further improve service delivery, the City has launched online payment capabilities for business certificate renewals and is currently testing a public-facing interface that will allow new business certificate applications to be submitted and processed entirely online.

Affordable Housing and Livable Communities
Additional online services now available include credit card payments for Summer Day Camp and Junior Lifeguard registration, photovoltaic/solar permit issuance, and business certificate renewals. The City is also working on expanded online permitting options, including electronic filing and processing for reroofing, water heater replacements, and electrical panel upgrades. These initiatives aim to streamline the permitting process and enhance the overall customer experience.

FY 2025/26 Actions:

A. Develop a fee calculator that applicants may use to estimate building permit fees for a project prior to submitting an application.

B. Implement additional on-line application and payment process for business certificates and permits.

C. Prepare an annual report to Council on the My Community app including such things as usage, response time and highest reported issues.

D. Pursue hiring an in-house Building Inspector/Official.

E. Develop Over-The -Counter plan review and permitting program.

Summary of Budgetary Projections for FY 2025/26: Most of the actions included in this item would be implemented using staff time as such resources are available. The new Building Department position would be tasked to further implement and update building processes to improve customer service response times. The new staff position would result in more office hours available to the public than currently contracted. The position would be paid for by reducing professional service expenditures to the City’s 3rd party building services consultant.

3. Outdoor Dining Regulations
Summary: Due to the COVID-19 pandemic, certain restrictions were modified to assist the business community during the difficult economic times, and to allow residents and visitors to continue to safely utilize certain services such as restaurants, bars, beauty salons, and exercise/wellness businesses outdoors and with appropriate social distancing. These specific businesses were allowed to temporarily expand into outdoor areas including sidewalks and parking lots (public and private) to provide additional space, especially during the times when indoor operations were not allowed.

Due to the popularity of certain businesses, mainly restaurants, the City Council directed the City Manager to prepare draft requirements and regulations to permanently allow these outdoor operations, including ways to mitigate potential issues to parking, noise, safety, aesthetics and other foreseeable areas. In Spring 2024 staff worked with the City Council subcommittee to refine and update Temporary Use Permit (TUP) development standards and regulations related to Outdoor Dining and Sidewalk Cafés. The new provisions were implemented in July 2024 and staff has been working with each of the existing dining establishments to update the respective permits that would be in conformance with the new TUP regulations.

Affordable Housing and Livable Communities
FY 2025/26 Actions:

A. Bring forward draft regulations to City Council for consideration.

B. Finalize strategy with respect to Coastal Commission permitting.

Summary of Budgetary Projections for FY 2025/26: Development of draft regulations can be completed with Staff time.

4. South Sierra Mixed Use Affordable Housing Project (Pearl Project)
Summary: In 2014, the City Council approved the Hitzke Development Corporation mixed use affordable housing project on South Sierra Avenue on a City-owned parking lot. The project as adopted includes commercial space and parking, ten (10) affordable housing units and associated parking, and 31 replacement public parking spaces. Following approval of the project, significant delays were encountered including a legal challenge against the City and Hitzke Development Corporation, where the City prevailed at both the lower court and the Court of Appeals. During this delay, construction costs increased and the inability of the Applicant to obtain required affordable housing funding, including State and County grants, resulted in Hitzke providing notice to the City in November 2020, that the project was no longer going forward for construction.

On February 24, 2021, pursuant to the terms of the Agreement, the Applicant provided to the City electronic copies of all plans prepared for the project. The City’s objective is to pursue development of the project pursuant to the prepared plans and approvals through issuance of a Request for Proposals (RFP). This project would provide needed affordable housing adjacent to neighborhood services, including transit and commercial uses, and would further implement the goals of the Solana Beach Housing Element and the General Plan. Additionally, this project, if built, could also satisfy obligations from a settlement agreement from the 1990s related to the provision of deed-restricted affordable housing units in the City.

FY 2025/26 Actions:

A. Issue RFI for RFP of this affordable housing site.

B. Update building permit plans for review/approval and construction.

Summary of Budgetary Projections for FY 2025/26: Development of RFI for affordable housing site can be completed with Staff time.

Affordable Housing and Livable Communities

5. Local Coastal Program/Land Use Plan Adoption and Preparation of the Local Implementation Plan
Summary: The entirety of the City of Solana Beach lies within the boundaries of the Coastal Zone. In 2012, the California Coastal Commission certified the City’s prepared a Local Coastal Program (LCP) Land Use Plan (LUP). The City Council formally adopted the LUP in February 2013. In alignment with the CCC’s direction, the City Council adopted a fee schedule in 2018 to address public recreation impacts and sand mitigation associated with bluff retention devices along the coastline.

The City continues to work on this effort along with other updates to the LUP as staff availability and workload allow. As work continues on this update, the City continues to update the LUP with any new applicable regulations and coordinate with the CCC staff directly on all CDPs to ensure compliance with the Coastal Act.

FY 2025/26 Actions:

A. Prepare documents necessary to update the City’s public recreation impact fee and sand mitigation fee.

B. Conduct public engagement and prepare a draft LIP and Land Use Plan Amendment (LUPA) to correct zoning information within the approved LUP.

Summary of Budgetary Projections for FY 2025/26: The estimated budget proposed for FY 2025/26 to continue the LCP Local Implementation Plan efforts is approximately $90,000 for consultant services. Additionally, the City has budgeted $100,000 for the necessary work to update the City’s public recreation impact fee and sand mitigation fee.

6. Short-Term Vacation Rental Permit Ordinance Update
Summary: The City’s current Short-Term Vacation Rental (STVR) Permit regulations allow for the rental of any residentially zoned dwelling unit, other than Accessory Dwelling Units (ADUs), including detached single-family residences, condominiums, duplexes, twinplexes, townhomes and multi-family dwellings. Since adoption of the City’s STVR regulations, the soaring popularity of vacation rental hosting websites has resulted in a proliferation of STVRs throughout the San Diego region. On an annual basis, Staff handles a variety of complaints regarding STVRs and their impacts to local neighborhoods including noise, parking and unruly guests. In order to maintain an appropriate balance of housing stock dedicated to residents and also to visitor accommodations, the City will evaluate the City’s Short Term Vacation Rental Permit regulations for potential amendments.

FY 2025/26 Actions:

A. Evaluate existing STVR Permit regulations for modifications.

Summary of Budgetary Projections for FY 2025/26: Development of draft regulations can be completed with Staff time.

Transportation and Mobility

2. TRANSPORTATION AND MOBILITY

1. Lomas Santa Fe Corridor Project
Summary: The Lomas Santa Fe Corridor project is a top priority due to the multiple benefits it could provide to the community. The project study area for the Lomas Santa Fe (LSF) Drive Corridor Project extends from Cedros Avenue on the East side of Highway 101 to Highland Drive at the City’s eastern boundary. The City’s goal for the Lomas Santa Fe Corridor Project is to construct physical improvements to improve the community character, safety, walkability, bikeability and circulation along this key east-west arterial through the City of Solana Beach.

The final design for the project was approved by the City Council on May 26, 2021. Partial funding for construction of the easterly segment of the project (from Santa Helena to Highland Drive) was secured from Congressman Levin’s office. Staff is working with Caltrans to obligate the $7,000,000 in federal funding, and is currently working through the federal procurement process that is required before the east side corridor improvements can be advertised for construction bids. The construction package was submitted to Caltrans for final review and approval in April 2025, as they are the delegated authority from the Federal Highway Administration (FHWA) to approve projects using federal funds in California. Based on the current project schedule, it is anticipated that a construction contract can be awarded in late Summer/early Fall of 2025 and, construction can begin at the end of calendar year 2025.

Under the present design, construction of the west side corridor improvements, from the west side of Interstate 5 to Cedros Avenue, are projected at approximately $8 Million. The City has received approximately $850,000 for the west side construction project, and the City Staff is working to secure additional funding through budgetary earmarks and grant funding. Staff has applied for construction grants through SANDAG and Congressman Levin’s office. Since the roadway conditions require paving maintenance, in the interim, Lomas Santa Fe west of Interstate 5 has been included in the annual roadway repair project to overlay and restripe Lomas Santa Fe. This work would include narrowing – yet maintaining - the two travel lanes in both directions, and the installation of painted bike lanes with buffers in each direction. The west side paving project will be constructed as part of the annual maintenance and repair project is expected to start construction before the end of the 2025 calendar year.

FY 2025/26 Actions:

A. Complete federal funding process with Caltrans for project east of Interstate 5, advertise for construction bids, award construction contract/approve PSA for construction management services and start construction.

B. Continue to apply for potential construction grant funding for the west section of the project.

C. Execute amendment to the PSA with City’s consultant to Prepare Construction Plans, Specifications, Estimate for the west side for competitive bidding purposes.

Transportation and Mobility
Summary of Budgetary Projections for FY 2025/26: Construction of the entire length of the corridor is estimated to cost approximately $15 million. The project has been separated into two segments for construction purposes. The first phase consisting of the easterly segment of the project (from Santa Helena to Highland Drive) was estimated at $7 Million, which has been secured from Congressman Levin’s office. The City Council authorized a transfer of $1,000,000 of surplus Measure S funds at the end of FY 2023/24 to the CIP fund to cover any increase in costs that may have occurred since original scope and design. The City is expecting to expend the funding received for the east side in FY 2025/26 and FY 2026/27.

The second phase is the west side (from I-5 to Cedros Avenue) is projected to cost approximately $8 Million. To date, the City has received $850,000 from Congressman Levin’s office that can be used for the development of design and construction plans.

2. Traffic Calming Projects
Summary: Several locations for traffic calming improvements, including signage and speed reduction installations (humps, pillows, tables, etc.), have been identified throughout the City. These projects include the monitoring and analysis of publicly initiated traffic calming requests and proposal of measures and installations that can be implemented within the public rights-of-way to enhance the user’s experience for all modes of transportation.

FY FY2025/26 Actions:

A. Monitor and assess traffic calming requests on Highland Drive south of Lomas Santa Fe, on San Mario Drive, and on Palmitas Street.

B. Review City’s Neighborhood Traffic Management Program (Traffic calming).

C. Present options pursuant to AB 43 (Friedman, Citywide speed reduction) for Council consideration (prioritize Highway 101, Lomas Santa Fe and Cedros).

D. Present framework options for implementation of AB 413 “Daylighting”.

E. Prior to final occupancy of the Solana Highlands project, implement the traffic calming measures included in the conditions of approval.

Summary of Budgetary Projections for FY 2025/26: Staff will bring forward projectspecific requests as needed. $75,000 for miscellaneous traffic calming projects are expected to be appropriated in the FY 2025/26 & FY 2026/27 Adopted Budgets.

3. Implementation of the Comprehensive Active Transportation Strategy (CATS) Study Projects
Summary: The Comprehensive Active Transportation Strategy (CATS), approved by the City Council in 2015, identifies approximately 20 bicycle and pedestrian projects throughout Solana Beach. These projects are designed to enhance bikeability and walkability across neighborhoods and major corridors, and they align with the City’s Climate Action Plan (CAP) and Vision Zero goals.

Transportation and Mobility
The City advances Vision Zero through safe roadway design, prioritization of active transportation, Safe Routes to School programs, and traffic calming initiatives. In support of these efforts, SANDAG recently completed a regional Vision Zero Action Plan, offering cities strategies focused on the five E’s: Engineering, Education, Encouragement, Evaluation, and Enforcement.

Currently Active CATS Projects:
• Lomas Santa Fe (East of I-5) – Federal funding process underway; construction bids expected Summer 2025
• Lomas Santa Fe (West of I-5) – Out to Bid for Paving and Striping; construction anticipated to begin by end of 2025
• Glencrest Sidewalks – Design and Bid Phase
• Santa Helena Improvements – Design Phase
• Cliff Street (Cedros to Glenmont) – Preliminary Engineering FY 2025/26 Actions:

A. The City Engineer will prepare a memo to the City Manager outlining the plan for implementation over the next 5 years, including the number of projects in planning, design and implementation annually.

B. Review SANDAG’s Vision Zero Action Plan and implement any pertinent policies or strategies.

C. Install audio alerts on Lomas Santa Fe on-ramp and off-ramp crossings, or other identified locations, where visibility is limited. If feasible, implement lighting improvements for pedestrian crossings and bicycles inside the underpass.

Summary of Budgetary Projections for FY 2025/26: Budget allocations for the various CATS projects are included in the budget.

4. Traffic Signal Upgrades
Summary: The City has 16 signalized intersections, that are maintained by Yune. The City’s traffic engineering consultant, STC Traffic, performed a citywide traffic signal assessment and made recommendations to maintain and improve the efficient and effective operation of the traffic signal systems. The first phase of improvements was to replace obsolete, damaged, and worn equipment, with a future phase to comprehensively upgrade and modernize the City’s system and equipment. The final component in the Phase I improvements was to install Battery Backup Systems for two intersections (1) Stevens/San Rodolfo (2) Stevens/Valley Ave. All work in Phase I is complete. The Phase II comprehensive system improvement will require significant costs, and a master plan based on priority components and upgrades.

Transportation and Mobility
FY 2025/26 Actions:

A. Prepare a master plan for comprehensive system improvements as recommended in the Citywide assessment.

B. Analyze the feasibility of installing flashing left turn lights (permissive yellow) in appropriate locations.

C. As part of the Lomas Santa Fe – West pavement repair project, some of the items in Phase 2 of the signal upgrades will be completed. This includes installation of video detection systems (instead of loop detectors) at five intersections, replacement of controller hardware at five intersections, replacement of cabinets and battery backup systems at three intersections and other miscellaneous upgrades.

D. Review the pedestrian and/or bike signal visibility along Lomas Santa Fe, west of I-5, during evening (sunset to dusk) to determine if any adjustments to light locations can be implemented.

E. Work with Caltrans to identify lighting maintenance or improvements that can be implemented at the undercrossing of I-5 on Lomas Santa Fe.

Summary of Budgetary Projections for FY2025/26 Phase II will consist of an evaluation and prioritization of projects and corresponding cost estimates consistent with the City’s traffic signal master plan. The City is expecting an appropriation of $230,000 for FY 2026/27 Adopted Budget from Gas Tax Funds for Phase II.

5. Highway 101 Tree Grate Replacement
Summary: Decorative tree grates were installed as part of the Highway 101 Westside Improvement Project back in 2011. Because of normal wear and tear, the tree grates are starting to deteriorate. This project will replace the existing, deteriorating tree grates along the west side of Highway 101. During FY 2024/25, a total of eight tree grates were purchased at a cost of approximately $25,000.

FY 2025/26 Actions:

A. Replace tree grates along Highway 101 with Cast Iron Grey anti-skid tree grates.

B. The number of tree grates to be replaced in future years will be determined based on an as-needed basis.

Summary of Budgetary Projections for FY 2025/26: The estimated cost to replace an additional eight (8) tree grates is $25,000. The City is expecting an appropriation of $25,000 annually for FY 2025/26 and FY 2026/27 Adopted Budgets from Coastal Business/Visitors Fund.

6. Glencrest Sidewalk Improvements
Summary: The Glencrest Sidewalk Improvement Project is identified as a high priority project in both the Safe Routes to School and CATS programs. The intent of this project is to provide safe pedestrian facilities while respecting private improvements and residential parking to the extent feasible without acquiring additional right of way. In 2024, the Council Transportation and Mobility
advanced a design for this project to include the construction of concrete curbs, gutters and sidewalks along both sides of Glencrest Drive from Lomas Santa Fe to Dell Street. The City is preparing construction drawings and bid documents that minimize impacts to the private improvements that are encroaching into the public right of way. Design should be completed by the end of December 2025. Construction could begin in the Spring of 2026. As mentioned below, Staff has submitted grant funding requests to three separate agencies. If this project receives grant funding, the grant funding requirements may impact the construction schedule.

FY 2025/26 Actions:

A. Prepare plans, specifications and estimate (PS&E) package B. Advertise for construction once funding has been identified.

C. Complete construction of the project, including coordination with adjacent property owners.

Summary of Budgetary Projections for FY 2025/26: Construction drawings and bid documents are being performed by in-house Staff and will include an estimate of construction costs. There is $75,000 available which was included in the FY 2023/24 TransNet Budget that was rolled over to FY 2024/25. These funds will be rolled over to FY 2025/26. The City is expecting an appropriation of $600,000 for FY 2025/26 Adopted Budget from Transportation Impact Fee (TIF) Fund. Staff has applied for construction grants through SANDAG, Congressman Levin’s office and State Assemblymember Boerner’s office.

7. Cliff Street Comprehensive Improvements
Summary: Cliff Street runs generally east to west, ascending steeply from its starting point at N. Cedros Avenue. Presently, Cliff Street is paved with asphalt/concrete (a/c), and has no sidewalk, intermittent a/c berms, and a variety of materials along the shoulder used primarily for parking. Currently, there is no underground drainage system in place, and precipitation and other runoff flow occurs from east to west, carrying sedimentation during storm events. City Council has requested that the City Engineer investigate possible designs for improved pedestrian access along Cliff Street. As part of this review, it is considered good Engineering practice to evaluate potential drainage improvements to mitigate runoff and erosion along this street. City Staff will evaluate the limitations and challenges with respect to existing private improvements encroaching into the right of way, co-alignment for drainage improvement, and possible design solutions for consideration by the City Council.

A continuous walkway would also be implemented along one side of the road to accommodate pedestrians.

FY 2025/26 Actions:

A. Develop opportunities and constraints analysis for Cliff Street for pedestrian access, such as a walkway, and drainage.

B. Conduct engagement with residents and nearby businesses and schools on use and possible design ideas.

C. Develop design-level plans for the proposed drainage system.

Transportation and Mobility
D. Develop a construction-level cost estimate for the proposed drainage and walkway improvement.

Summary of Budgetary Projections for FY 2025/26: Preliminary tasks will be performed by in-house Staff. Staff will continue to develop construction level plans, specifications and cost estimates with support from the City’s on-call civil engineering consultants. Additionally, Staff will work on designing appropriate right of way improvements along both sides to Cliff Street.

8. CRT Extension at North City Limits
Summary: This project is a continuation of the City’s existing Coastal Rail Trail (CRT) from its current terminus near Ocean Street, northerly to the City’s jurisdictional boundary with the City of Encinitas. The project would end at a proposed pedestrian crosswalk that would link the Harbaugh Seaside Trails to the Seaside State Beach in Encinitas. The project would include an extension of the concrete path, decomposed granite (DG) shoulders, landscaping, irrigation and minor concrete repairs to the existing concrete path. This work will also include a refresh and repairs to the existing northern segment of the CRT, including removal of the crescent deck platform, and replacement with similar drought-tolerant, native plantings.

FY 2025/26 Actions:

A. Coordinate with City of Encinitas to connect the CRT extension to the proposed pedestrian crosswalk between Harbaugh Seaside Trails to the Seaside State Beach.

B. Include removal of the crescent deck platform and replace with landscaping consistent with existing landscaping.

C. Prepare plans, specifications and estimate (PS&E) package.

D. Advertise for construction once funding has been identified.

Summary of Budgetary Projections for FY 2025/26: Estimated total cost for this project is $375,000. The City is expecting to appropriate $375,000 in Public Recreation Impact Fees for FY 2025/26 & FY 2026/27 Adopted Budgets for design ($75,000) and construction ($300,000). Staff has applied for construction grants through Congressman Levin’s office and State Assemblymember Boerner’s office.

9. Santa Helena Neighborhood Trail
Summary: City Staff is working on a plan that would implement the recommendations contained in the CATS and Safe Routes to School studies. The paved area on Santa Helena, north of Sun Valley Road, is approximately 64 feet wide, with a painted median.

The area within the painted median was not constructed to carry vehicle traffic, and as a result, the traffic that crosses over the median area degrades the condition.

The citywide condition assessment identified Santa Helena as being in need of paving and repair work. In preparation for this paving work, Staff developed a comprehensive plan for a Transportation and Mobility
multi-use trail along Santa Helena; however, based on neighborhood feedback, that design is no longer being pursued. Pothole repair work within and adjacent to the painted medians was conducted in early 2025. City staff is now working on modified designs that include consideration of the median area, such as raised, planted medians or full reconstruction for long-term wear from crossing vehicle traffic. During the next year, City staff will be conducting additional community engagement on median options and plan for a paving project that can be implemented for the norther segments of Santa Helena.

FY 2025/26 Actions:

A. Conduct additional community outreach on median options, paving and striping.

B. Prepare design and bid documents for the pavement repair and stripping project.

C. Advertise for construction bids, award construction contract and construct project.

Summary of Budgetary Projections for FY 2025/26: The FY 2024/25 Budget Update allocated a $450,000 transfer from the Measure S Fund to the CIP Fund for construction of this project. Depending on the community feedback on the median options, additional funding may be necessary for this project.

10. Electric Bicycle (E-Bike) Safety and Education Program Summary: The proliferation of E-Bikes in the city has resulted in both positive and negative impacts on the community. E-Bikes can help riders of all ages, skills and physical abilities live more active lives, reduce daily miles traveled in vehicles, and provide a convenient and clean mode of transportation around the community. However, there are significant safety concerns that have arisen as the popularity of E-Bikes has exploded. The City would like to continue to promote the use of E-Bikes in the community but also create a safe environment for pedestrian and vehicular traffic. The continued education of both E-Bike riders and the public is paramount to a harmonious community that can both foster clean alternative modes of transportation while protecting the health and safety of the residents.

FY 2025/26 Actions:

A. Continue the partnership with the San Diego County Bike Coalition and BikeWalkSolana to provide E-Bike safety educational workshops and practical exercises throughout the community. These trainings should incorporate driver education related to bikes and EBikes safety as laws are constantly changing.

B. Continue to collaborate with the local schools to provide educational opportunities and on the permit program for E-Bike riders.

C. Partner with the local bicycle shops on educational opportunities when E-Bikes are purchased. Coordinate/communicate ongoing educational workshops/seminars to bike shops to distribute when e-bikes are sold.

D. Coordinate with Sheriff’s Office on enforcement actions of illegal (not street legal) ebikes.

Summary of Budgetary Projections for FY 2025/26: Anticipated costs associated with partnering with the San Diego County Bike Coalition and BikeWalkSolana are approximately $6000 for the education and training programs in FY 2025/26.

Environmental Sustainability and Energy

3. ENVIRONMENTAL SUSTAINABILITY AND
ENERGY

1. Climate Action Plan Update
Summary: In October 2024, the City of Solana Beach adopted an updated Climate Action Plan (CAP), building upon the original 2017 plan. This update reflects advancements in technology, evolving market trends, and the latest scientific best practices to strengthen the City’s response to climate change. According to the most recent greenhouse gas (GHG) inventory (2018), prepared by the San Diego Association of Governments (SANDAG) and the Energy Policy Initiatives Center (EPIC), Solana Beach has achieved a 40% reduction in emissions compared to 2010 levels.

To sustain and accelerate this progress, the City will prioritize implementation of CAP strategies and actions aimed at further reducing GHG emissions and enhancing community resilience. Key initiatives for the upcoming fiscal year include:
• Expansion of publicly accessible electric vehicle charging infrastructure • Launch of a heat pump water heater incentive program
• Tree canopy expansion to increase urban greening and cooling, and review of landscaping coverage data for mitigation of urban heat island effect. • Identification of Benchmarks for a Building Performance Standard (BPS) • Completion of a new GHG inventory to track progress
The City continues to collaborate with regional partners and coalitions to ensure effective and coordinated CAP implementation. Additional details on policies and action items can be found in the Climate Action Plan Update (Climate Action Plan | Solana Beach).

FY 2025/26 Actions:

A. Implement priority actions as outlined in the CAP Update Implementation Matrix.

B. Research a public charging station program, focusing first on underserved areas, or areas with multifamily residential.

C. Continue working on the feasibility of a microtransit pilot program; over the next year continue engaging focus groups to determine demand and researching potential funding options.

Summary of Budgetary Projections for FY 2025/26: Staff estimates $100,000 annually to implement various actions, as identified in the CAP Update Implementation Matrix. As projects are identified and costs are finalized, projects will be brought to the City Council. In addition, $230,000 is estimated for public EV parking infrastructure and $100,000 for the planning and pilot framework for a senior, microtransit pilot program. Additional cost analysis will be conducted on the CAP actions for implementation, as needed.

Environmental Sustainability and Energy

2. Continued Participation in Clean Energy Alliance (CEA) Summary: The City of Solana Beach has been at the forefront of promoting and establishing a local Community Choice Aggregation (CCA) program. In February 2018, the City Council gave final approval to launch Solana Energy Alliance (SEA), and SEA officially began operations in June 2018, becoming the first CCA in San Diego County. SEA transitioned to the Clean Energy Alliance (CEA) in collaboration with the cities of Carlsbad and Del Mar.

CEA currently includes the cities of Carlsbad, Del Mar, Solana Beach, Escondido, San Marcos, Oceanside, and Vista.

The City of Solana Beach remains proud of its leadership role in launching the first CCA in San Diego County and looks forward to continuing its efforts in promoting sustainable energy solutions through the Clean Energy Alliance.

FY 2025/26 Actions:

A. Work with CEA to identify the steps necessary to move toward a 100% RPS goal as soon as possible but no later than 2035. CEA has incorporated incremental (~2%) annual increases to the RPS in its Integrated Resource Plan (IRP), as well as the pro forma, to achieve 100% by 2035.

B. Continue to work with the CEA Board and staff to expand programs for local generation and storage programs.

C. Engage CEA to explore incentive programs for heat pumps/water heater installations.

Summary of Budgetary Projections for FY 2025/26: Participation in CEA meetings and events will be limited to Staff time.

3. City Facility Energy Efficiency and Decarbonization Upgrades Summary: City facilities represent a significant opportunity to reduce municipal energy consumption, lower utility costs, and demonstrate leadership in sustainability. By investing in targeted energy efficiency upgrades, Solana Beach can make meaningful progress toward its Climate Action Plan (CAP) goals while also improving building performance and resilience. Potential upgrades include the installation of high-efficiency lighting systems, modern HVAC units, energy-efficient windows, and, where feasible, on-site renewable energy systems such as photovoltaic (solar) panels and battery energy storage systems.

These improvements not only reduce greenhouse gas emissions but can also lead to longterm cost savings through lower energy bills and reduced maintenance needs.

To evaluate the feasibility and potential benefits of these upgrades, City staff will collaborate with energy efficiency consultants to assess the condition and energy performance of municipal buildings. This assessment will include identification of high-impact energy efficiency measures, projected energy and cost savings over time, and operational and maintenance considerations. In parallel, staff will research and pursue potential funding sources to support implementation, including federal and state grants, utility rebates, and low-interest financing programs. These financial mechanisms could make it possible to move forward with projects that offer strong environmental and economic returns. Findings Environmental Sustainability and Energy
from this effort can inform and serve as a model for local businesses and residents and future updates to the Climate Action Plan.

FY 2025/26 Actions:

A. Draft and issue an RFP for an Energy Efficiency Consultant to evaluate potential energy projects for City facilities.

B. Research opportunities for the City to enter into Power Purchase Agreements (PPAs) and obtain funding for Microgrids at City facilities.

C. Pursue the design and installation of operable windows at City Hall.

Summary of Budgetary Projections for FY 2025/26: Total costs unknown and would be determined after identifying the scope of the project.

4. Marine Safety Center
Summary: The City’s Marine Safety Center is deficient and does not meet current and longterm needs of the community and beach visitors. The existing facility is dilapidated with design deficiencies that don’t meet the current needs of our lifeguards with respect to storage, operations, and technology, as well as facilities for persons with disabilities or of different genders/identities. A needs assessment study was completed in June 2017, which determined that the best alternative was to demolish the existing building and construct a new building.

A Professional Services Agreement with an architectural consultant was approved in October 2018, to develop a preliminary site and building design for a new Marine Safety Center. Following a community meeting in February 2019, the City consultant prepared three design options that were presented to the Council during a public hearing in November 2019. Upon receiving direction from the Council and input from the community, a facility design was developed, and story poles were installed in April 2022. After receiving testimony from the public, the City Council provided further direction to the City Manager to modify the proposed design to minimize view impacts without jeopardizing the operational needs for the Lifeguard Station. Following numerous design iterations, a second set of story poles were installed in October 2024. As part of the December 2024 public meeting, the Council approved a modified design and adopted a Development Review Permit (DRP)/Site Development Permit (SDP) for the replacement of the Marine Safety Center.

The next step for the project is to submit a Coastal Development Permit application to the California Coastal Commission. Upon receipt of the necessary permits, the City will prepare final engineering and construction design documents to be released for bid for construction.

While allocation of funding for construction of the Marine Safety Facility is still pending, throughout the next phases, the City will be exploring the availability of grant funding and/or alternative approaches for this significant public capital investment to ensure construction of this project can start at the earliest possible time given the remaining regulatory and financial requirements for this important City facility project.

Environmental Sustainability and Energy
FY 2025/26 Actions:

A. Prepare additional technical studies and apply for a Coastal Development Permit.

B. Engage Coastal Commissioners for a site visit to see existing conditions.

C. Research and apply for grant funding opportunities.

D. Upon approval of the CDP, prepare final engineering and construction design documents.

Summary of Budgetary Projections for FY 2025/26: As part of the update in January 2024, the City Council authorized an increase to the PSA with the Consultant (domusstudio) in the amount of $500,000. This budget allocation will be carried forward into FY 2025/26 to allow the project to progress through the Coastal permitting process and receipt of an engineering cost estimate for a construction bid solicitation. It is anticipated that additional funding will be necessary in future fiscal years to complete the state permitting, prepare construction level plans and specifications, and advertise for competitive construction bids.

Council authorized a transfer of $1,000,000 in surplus Measure S funds at the end of FY2023/24 to the CIP fund towards future construction costs for the Marine Safety Building.

An additional $700,000 in design services and an additional $1,000,000 in future construction costs are expected to be appropriated in the FY 2025/26 and FY 2026/27 Adopted Budget from Measure S funds.

5. Fletcher Cove Improvements
Summary: The proposed Fletcher Cove Improvements consist of the replacement of the beach access ramp, the dissipater grate at the bottom of the ramp, and improvements to the shower area, including the drainage and expansion of number of shower heads. The ramp replacement includes replacing the concrete ramp, the asphalt concrete walkway immediately south of the ramp, the concrete curb and the metal handrailing. The existing dissipator grate was installed in approximately 1998, as part of the NCTD train station project and associated drainage work. Due to the ocean weather and salt water, the dissipator grate is corroding and needs to be replaced. A Coastal Development Permit waiver from the California Coastal Commission was obtained in November 2023, for replacement of the dissipator grate and associated beach access ramp improvements. This project was advertised for construction bids in April 2025 and planned to be awarded in July 2025. It is anticipated that construction can start after Labor Day (September 1, 2025) to avoid the peak summer months.

In addition to the ramp, dissipator and shower project, improvements/repairs are needed for the decorative surfacing within the park. These repairs will occur near the Nautilus landing between the Lifeguard and restroom buildings, at the compass adjacent to the vehicle entrance along South Sierra Avenue and other small miscellaneous concrete repairs throughout the park.

Environmental Sustainability and Energy
FY 2025/26 Actions:

A. Construct the comprehensive Fletcher Cove Improvement Project to include the replacement of the concrete access ramp and walkway, replacement of the dissipater grate and installation of a new shower tower, with foot showers, near the bottom of the access ramp.

B. Remove and replace the existing community sign and bulletin board to the north of the ramp, incorporating the decorative metal features if possible.

C. Repair Lithocrete/decorative concrete in areas to be specified throughout the park.

Summary of Budgetary Projections for FY 2025/26: Construction bids were received for repairs to the access ramp, replacement of the dissipator and additional shower improvements. With the inclusion of materials testing and construction contingency, the construction contract is expected to cost approximately $510,000. There is $190,000 allocated in the Sand Retention Fund’s FY 2024/25 Adopted Budget and $60,000 in the Coastal/Visitors Fund’s FY 2024/25 Adopted Budget, which will be rolled to FY 2025/26 for project completion. An additional $260,000 will be added to the FY 2025/26 Proposed Budget from the Measure S Funds for the access ramp replacement project. Additional work for the Lithocrete/paving repairs are proposed at $140,000 to be appropriated in FY 2025/26 Proposed Budget from the Measure S Funds.

6. Major Storm Drain System Improvement Projects
Summary: There are a number of storm drain systems throughout the City that are in need of improvements/upgrades. This project provides ongoing priority ranking, design and construction of city-wide storm drain system improvements based on available funding. A project was completed in FY 2023/24 to line and replace several Corrugated Metal Pipes that were in the worst condition. The FY 2024/25 project will consist of open trench replacement of deteriorated corrugated metal pipes (CMP) throughout the City. A construction contract was awarded at the March 12, 2025, City Council meeting and construction started on May 12, 2025. It is expected that this project will be completed before the end of the 2025 calendar year. There is also a separate pipelining project that was identified in the FY 2024/25 CIP budget. This project was advertised for construction bids in April 2025 and is expected to begin construction during the Fall of 2025.

FY 2025/26 Actions:

A. Identify priority projects to continue to improve storm drain infrastructure throughout the City.

B. Complete design, procurement and construction of identified projects.

Summary of Budgetary Projections for FY 2025/26: Estimated total cost of $500,000 for storm drain improvements in Fiscal Year 2025/26, which is expected to be appropriated in the FY 2025/26 Adopted Budget, with $300,000 from the Measure S Fund and $200,000 from the Misc. CIP Fund.

Environmental Sustainability and Energy

7. The Mayors Monarch Pledge
Summary: The monarch butterfly, an iconic species, has seen a dramatic decline in its populations, with eastern populations decreasing by 90% and western populations by 99% in recent years. To combat this decline, the City of Solana Beach has joined the National Wildlife Federation's (NWF) Mayors' Monarch Pledge. This initiative encourages U.S. cities, municipalities, and communities to create habitats for the monarch butterfly and other pollinators, and to educate residents on how they can contribute to these efforts at home and within their communities.

By taking the Mayors' Monarch Pledge, mayors must commit to implementing at least three of the 30 action items listed on the NWF website (nwf.org/MayorsMonarchPledge) each year they participate. At least one of these actions must come from the “Program & Demonstration Gardens” section. Mayors who complete eight or more actions are recognized as part of the National Wildlife Federation’s Mayors’ Monarch Pledge Leadership Circle, and those who complete 24 or more actions are honored as Monarch Champions.

The City of Solana Beach first committed to the pledge for the 2021 program year and has renewed its pledge annually for each year thereafter. The City is actively involved in this initiative by implementing various action items, such as establishing demonstration gardens, hosting educational events, and planting milkweed and pollinator-friendly native nectar plants. Furthermore, the City reports its progress annually, detailing the engagement activities, the number of participants, and the specifics of the planted areas to track and promote the success of these conservation efforts.

FY 2025/26 Actions:

A. Continue to engage with the SeaWeeders and other partners to support monarch butterfly conservation and plant native milkweeds and nectar-producing plants in locations like the Coastal Rail Trail, at the La Colonia Community Center, and other City-owned properties.

B. Add or maintain native milkweed and nectar producing plants in community gardens and at the El Jardin de los Ninos at the La Colonia Community Center.

C. Add native milkweed and nectar producing plans at new City projects, including the future Glenmont Park.

D. Prepare annual report about progress on the above three actions including statistics on numbers of plants purchased or planted per the Mayors’ Monarch Pledge guidelines.

Summary of Budgetary Projections for FY 2025/26: Maintenance costs for plants and any costs for new plants to replenish existing monarch gardens is approximately $1,000 annually (included within Public Works budget). To expand to other City-owned properties, Staff anticipates another $10,000 in plant, irrigation, and labor costs (to be included within the Climate Action Plan budget).

Environmental Sustainability and Energy

8. San Diego Regional Climate Collaborative
Summary: The San Diego Regional Climate Collaborative is a network of public agencies, nonprofits, businesses, and academia working together to advance climate change solutions and promote sustainability across the San Diego region. By fostering collaboration and information sharing, the Collaborative aims to enhance regional efforts in climate protection, resilience, and sustainability.

The City of Solana Beach has been an active participant in the San Diego Regional Climate Collaborative, engaging in various initiatives to advance sustainability and climate resilience.

Over the years, the City has collaborated with other member jurisdictions to share best practices, develop and implement climate action plans, and participate in regional projects focused on reducing greenhouse gas emissions and enhancing climate resilience. Notable achievements include the successful implementation of waste minimization programs, efforts to protect and restore healthy ecosystems, and initiatives to improve water quality and efficiency. Through its ongoing participation, the City continues to demonstrate leadership in promoting sustainability and addressing climate change at the regional level.

FY 2025/26 Actions:

A. Renew the City membership and attend the San Diego Regional Climate Collaborative meetings and sponsored events.

Summary of Budgetary Projections for FY 2025/26: Participation in SDRCC meetings and events will be limited to Staff time. If sponsorship or other opportunities are presented, additional budget authorizations will be consistent with City policy.

Youth, Senior, and Community Well-being

4. YOUTH, SENIOR, AND COMMUNITY WELLBEING

1. La Colonia Park Improvements
Summary: In 2006, a community-based La Colonia Park Needs Assessment Advisory Committee developed recommendations for improvements throughout La Colonia Park, which included among other improvements, ADA-compliant ramps and pathways throughout the park and facilities. The City completed the conceptual design for the park improvements in December 2009, and preliminary design of the park in September 2010.

Since the original La Colonia Master Plan (LCMP) was completed, three components of the LCMP were built as separate projects. Construction of the Veteran’s Honor Courtyard was completed in May 2016, construction of the La Colonia Skate Park was completed in April 2019, and the new tot lot playground was completed in May 2024.

With the City’s purchase of the property immediately north of the skate park, there was a need to re-evaluate the property and existing park, and the needs and priorities. The Council approved a PSA for updating the La Colonia Master Plan in February 2022, and a public workshop was held in February 2023 to gather community input on priorities and needs for design, operations, and facilities onsite. Updates were provided to the City Council in March 2024 and February 2025. While work continues on the larger Master plan document, Staff has prepared a conceptual drawing of potential interim improvements that could be implemented before the full LCMP is completed and construction funding is identified.

These interim improvements include passive uses of the vacant lot north of the La Colonia Skate Park and may include features such as minor grading to facilitate pedestrian access from the existing park, decomposed granite walkways, seating, grass area, irrigation improvements, and maintaining existing mature trees and landscape.

While ongoing maintenance and smaller facility and park improvements are programmed, the City continues to seek additional funding for expansion, park improvements, including ADA-compliant renovations in compliance with the City’s ADA Transition Plan.

FY 2025/26 Actions:

A. Conduct outreach and complete design for the new City building to include youth and senior center.

B. Heritage Museum: Prepare a construction bid package (RFB) for roof repairs, fascia repairs, and various other building improvements at the museum. Conduct bid process and complete construction
C. Determine feasibility of interim building solutions to open community center main entrance and install new windows. This would include the relocation of the “Tree of Life” that celebrates the founding families of the La Colonia neighborhood.

D. Identify interim outdoor improvements around trellis and courtyard area.

Youth, Senior, and Community Well-being
E. Develop concept for interim park improvements on vacant lots north of the Skate Park.

Present interim park improvements to community and City Council.

F. Install echo/noise control in the large Community Room.

G. Initiate a planning process to explore a comprehensive guiding plan for the community that can provide further design and setback regulations to maintain the historic and cultural history of the neighborhood.

Summary of Budgetary Projections for FY 2025/26: The total Capital Improvement Plan costs for La Colonia Park Improvements is estimated to cost $913,000, with $500,000 from Measure S Funds, $300,0000 from Public Development Impact Fees Fund, $66,000 from Facilities Replacement Fund; expected to be appropriated in the FY 2025/26 & FY 2026/27 Adopted and $47,000 Facilities Replacement Fund available in FY 2024/25 Budget that will be rolled over as well. Funding is proposed to be allocated as follows:
• Interim improvements to vacant lot, community center entrance and outdoor courtyard - $800,000
• Community Center – replacement of HVAC Unit – $30,000 • Community Center – replacement of HVAC Control System – $6,000 • Community Room inside Community Center – echo/noise control for the – $30,000 • Heritage Museum – roof and fascia repairs – $47,000

2. Age Friendly Communities Action Plan
Summary: The City acknowledges the importance of addressing the needs of its aging population, which is one of the oldest in San Diego County. In partnership with the San Diego Foundation, the American Association of Retired Persons (AARP), and San Diego State University, the City has embraced the Age-Friendly Communities Program. This initiative seeks to create more livable environments for residents of all ages and abilities by promoting programs and system-level changes.

The Age-Friendly Solana Beach Action Plan, adopted by the City Council on March 22, 2023, outlines strategies to address various needs of older adults, including transportation, housing, outdoor spaces and buildings, community support and health services, respect and social inclusion, communication and information, social participation, and civic participation and enjoyment.

Moving forward, City Staff will continue to implement programs and policies outlined in the adopted Age-Friendly Action Plan. Solana Beach remains committed to fostering an inclusive and supportive community where residents of all ages can thrive.

FY 2025/26 Actions:

A. Implement circulator or shuttle services specifically tailored to meet the transportation needs of seniors, providing convenient access to essential services and amenities.

Youth, Senior, and Community Well-being
B. Continue to coordinate with other local service providers, including Solana Beach Community Connections, Solana Beach Presbyterian Church, the County Library, etc. to maximize programs and services for the senior community.

C. Work with youth organizations such as the Solana Beach School District, San Dieguito Unified High School District, and San Dieguito Boys & Girls Club, to develop a program that pairs youth with senior residents to provide companionship, friendship, and mentoring/tutoring opportunities that reflect both the City of Kindness initiative and the Age-Friendly Action Plan
D. Increase community-based senior health and wellness programs and activities, including exercise classes, health screenings, and support groups tailored to the needs of older adults.

E. Within capital projects or facility improvement, include designs that promote accessibility and walkability for persons of all abilities.

F. Identify funding for fixed- and low-income senior homeowners to retrofit their properties with age-friendly features such as grab bars, wheelchair ramps, and non-slip flooring.

Summary of Budgetary Projections for FY 2025/26: Costs for implementing a circulator service continue to be developed through further engagement and funding opportunities.

Staff has recommended $100,000 be allocated in the next fiscal year budget for this purpose. City Staff will continue to explore partnerships to maximize senior programs and services including utilizing City facilities. Staff will continue to work with organizations such as the Boys and Girls Club, Solana Beach Presbyterian Church Senior Center and Solana Beach Community Connections to provide programming for the senior community.

However, increased programs and services may require more investment from the City, which will be brought to Council for consideration before implementation.

3. Glenmont Neighborhood Park
Summary: The City has been working with Santa Fe Irrigation District (SFID) to explore the possibility of the development of a park along Glenmont Avenue adjacent to the SFID reservoir. The City has initiated discussions with SFID to create an agreement and a timeline for the development of a future neighborhood park at this location. The site is presently excess land around the tank, and planned to be used by SFID as a construction staging and laydown yard for a seismic retrofit and roof replacement project for the existing tank. The SFID is currently conducting a study of the scope and timeline for that reservoir repair work.

The City is working with SFID to create a timeline for design, funding, bid, and construction following the completion of the tank project. In the meantime, the City has completed conceptual design work for a passive neighborhood park. Future fiscal year work will include city and CCC permitting, construction RFP and bid process, and construction.

FY 2025/26 Actions:

A. Work with the community to receive project feedback on design and prepare a preliminary project timeline and conceptual design.

B. Enter into an agreement with Santa Fe Irrigation District.

Youth, Senior, and Community Well-being
C. Work with residents and SFID to minimize impacts related to any work in proximity to the tank or during tank improvement project construction to the greatest extent possible.

Summary of Budgetary Projections for FY 2025/26: It is estimated that the conceptual design and public outreach would cost approximately $10,000, and the estimated cost for preparation of construction plans including landscaping and irrigation plans is $65,000.

Additional funding will be required for future fiscal years for construction; a construction cost estimate will be provided after the project is designed. There is $350,000 available which was included in FY 2024/25 CIP budget. The City is expecting an additional $75,000 to be appropriated in the FY 2026/27 Adopted Budget from Public Use Facilities Impact Fee Fund.

Staff has also included a placeholder amount of $1,000,000 in the FY 2027/28 CIP budget for construction of the project.

4. Fletcher Cove Community Park and El Viento Pocket Park Trail Upgrade
Summary: The existing trail system in both locations are subject to significant erosion during storm events. This project would convert the existing D.G trail pathways into a more stable semi-pervious surfacing that can withstand high-precipitation storm events and is ADA compliant. Staff is doing research on alternative products, and pursuing a pilot project for an acceptable product that can be used in lieu of bonded/stabilized DG.

FY 2025/26 Actions:

A. Develop a set of design plans, specifications, and cost estimate (PS&E) for both sites.

B. Conduct bid process and complete construction.

Summary of Budgetary Projections for FY 2025/26: The preliminary cost for both sites is estimated at $200,000, which is currently appropriated in the FY 2024/25 CIP Fund and will be rolled over to FY 2025/26.

5. City of Kindness Coalition
Summary: The City of Kindness is a coalition of organizations dedicated to inspiring and promoting kindness worldwide. This initiative aims to effect meaningful change among schools, professionals, young people, elected officials, and companies. It is a project of the Social Impact Fund, a non-profit public charity that supports efforts to advance social good and make a positive difference globally.

Mayors across the country have united to encourage the nation to adopt a culture of kindness in our cities, businesses, and schools through acts of kindness. Solana Beach is officially a part of this coalition, and our Staff will continue to collaborate with the community group to promote the program and assist with events regularly. We will integrate these activities into City events and programming to foster a kinder and more inclusive community.

Youth, Senior, and Community Well-being
By working together, we can create an environment where kindness thrives, benefiting everyone in our city.

FY 2025/26 Actions:

A. Install banners with themes to implement the City of Kindness programs.

B. Encourage acts of kindness throughout the community and submittal of observed acts of kindness to the Kindness Counter link on the City’s website.

C. Host outreach efforts concurrently with existing City events for residents of all ages to come together on projects with positive messages of kindness and encouragement.

D. Continue annual World Kindness Day celebration event in November to bring the community together with fun and interactive kindness activities at Fletcher Cove Park.

E. Initiate quarterly “Solana Beach Cares – Seasonal Kindness Drives” to collect and distribute community donations of essential food and other necessities to those in need.

F. Develop a working group of non-profits and other interested stakeholders to meet on a regular basis to promote the City of Kindness programs.

Summary of Budgetary Projections for FY 2025/26: These actions can be completed with City Staff time.

6. Replacement of Emergency Generator at Fire Station
Summary: The existing generator at the fire station is approximately 28 years old and was installed when the fire station was constructed in 1991. Due to the age of the existing generator, the permit with the Air Pollution Control Board only allows for the operation of the generator up to 20 hours per year in non-emergency situations during testing and maintenance. As part of the design study, the operational needs of the building were evaluated to determine the size of the generator required. The electrical switchgear was also evaluated to determine if upgrades were necessary. The project was advertised for construction bids during FY 2024/25 and the City Council awarded a construction contract in April 2025. It is anticipated that the construction and installation will occur in Fall of 2025.

FY 2025/26 Actions:

A. Contractor to obtain permits from Air Pollution Control District (APCD).

B. Contractor to order generator. Lead time to procure new generator is 16 to 20 weeks.

C. Complete construction and installation of project.

Summary of Budgetary Projections for FY2025/26: Complete construction funding is estimated to cost $243,000 plus $30,000 in contingency was appropriated as part of the award of a construction contract on April 23, 2025, with $209,000 current appropriated as part of the FY 2024/25 Adopted Budget in CIP fund. The shortfall of $41,000 will be allocated from the CIP undesignated fund balance.

Youth, Senior, and Community Well-being

7. Synthetic Drug Substance Prohibition
Summary: Synthetic substances, commonly referred to as Bath Salts or Spice, are documented that when consumed to cause hallucinations, agitation, psychosis, aggression, suicidal tendencies, among other things. While newly created drugs often go unregulated in California due to testing and other regulatory requirements, many of these substances are given emergency scheduling under the U.S. Food and Drug Administration. The City Council has directed the City Manager to develop appropriate regulatory language to be considered by the Council to prohibit the manufacturing, sale, distribution and/or possession of Federal Schedule I drugs, including novel synthetic drugs.

FY 2025/26 Actions:

A. Develop proposed regulatory language that incorporates updates under state law by reference to be considered for adoption by the Council.

Summary of Budgetary Projections for FY 2025/26: Development of draft regulations can be completed with Staff time.

8. Healthy and Livable Communities
Summary: The City of Solana Beach has always been a leader in initiating programs and policies to encourage a healthy, safe and thriving community. Throughout the years, the City has adopted progressive policies to ensure the health of all residents, especially focused on youth and seniors. While these policies are sprinkled throughout this Work Plan in various Priority Items, we felt it was important to add a dedicated item to include any programs or projects that were not specifically included in other sections of the Work Plan.

FY 2025/26 Actions:

A. Continue to develop and implement programs that encourage active participation for the youth and seniors in the community.

B. Research the potential for a multifamily smoking ban ordinance.

C. Continue to work with our Public Safety Departments to ensure a safe and welcoming community. This includes fire safety, law enforcement participation and Marine Safety involvement to ensure residents and visitors feel safe, businesses have access to resources and feel secure, and residents have tools to ensure the protection of their property.

D. Research possible restrictions on wood burning appliances and fireplaces.

E. Review and update urban agricultural regulations related to backyard chickens, beekeeping, fruit trees.

Summary of Budgetary Projections for FY 2025/26: Staff time will be needed to develop and implement additional programs to promote community well-being. Any significant new programs will be brought to City Council for consideration, which may include dedication of new funding.

General Governance and Fiscal Responsibility

5. GENERAL GOVERNANCE AND FISCAL

RESPONSIBILITY

1. Legislative Platform and Lobbying
Summary: Legislative priorities for the City are generally reflected throughout this Work Plan. The following is a list of actions that should be conducted on an annual basis and with regular review to ensure new and pending legislation is being responded to in a manner consistent with the City’s priorities and regulations.

FY 2025/26 Actions:

A. Update Legislative Priority List annually for Council Consideration and develop policy on priority topic areas to support/advocate.

B. Continue to work with lobbyists to promote City agenda and priorities.

C. Engage representatives and submit letters to further City and regional priorities.

D. Adopt City ordinances and policies to respond to and remain compliant with changes in law.

E. Explore opportunities or alternatives for City governance such as a Charter City.

Summary of Budgetary Projections for FY 2025/26: The City’s lobbyists are engaged at a total estimated not to exceed amount of $107,000 for Fiscal Year 2025/26, including federal public affairs.

2. Staff Engagement and Effectiveness
Summary: The Staff in the City of Solana Beach are the backbone of operations and essential for delivering vital services to our residents. Recognizing their expertise, individualism and role fosters a strong, Staff-focused workplace. The cornerstone to the success of our city lies in prioritizing their well-being, growth, and recognition as key drivers of community success. Creating a highly supportive municipal work environment should include Staff engagement aimed at empowering employees, supporting professional growth, and maximizing skills that contribute to organizational success. This can be realized through a consistent and fair approach to hiring that ensures inclusiveness, transparency and internal promotional opportunities.

FY 2025/26 Actions:

A. Create programs that implement an “open-door policy” where employees can share their ideas, concerns, and suggestions for continuous improvement of the City as a workplace and a community.

B. Identify opportunities as part of the annual review process for Staff to pursue certifications, attend workshops, and participate in ongoing training and development opportunities to enhance employees' skills and knowledge.

General Governance and Fiscal Responsibility
C. Conduct mandatory training for all (100%) permanent City employees focused on promoting accountability, transparency, and ethical standards.

D. Conduct annual performance reviews and regular feedback sessions to provide employees with opportunities for growth and improvement.

Summary of Budgetary Projections for FY 2025/26: These actions can be completed with City Staff time.

3. Promote a Diverse and Inclusive Work Environment
Summary: Recognizing the evolving social and political landscape, organizations are actively working towards fostering diversity, equity, and inclusion within their ranks.

Research indicates that beyond legal and moral imperatives, diversity and inclusion offer substantial competitive advantages. The City is committed to nurturing an inclusive workplace culture, emphasizing employee engagement to bolster professional advancement, development, and retention. These objectives are communicated transparently to Staff and the Council, with progress assessed through key performance indicators that track trends within the City and across the broader region. By incorporating these actions, the City can actively promote and cultivate a more diverse, equitable, and inclusive workplace environment.

FY 2025/26 Actions:

A. Implement regular diversity training sessions and workshops for all Staff members to raise awareness and promote understanding of diverse perspectives, cultures, and identities.

B. Review and update City policies and procedures to ensure they are inclusive and supportive of all employees, regardless of their background or identity.

C. Collaborate with local community organizations and advocacy groups to foster partnerships and initiatives that promote diversity and inclusion both within the City workforce and the broader community.

Summary of Budgetary Projections for FY 2025/26: These actions can be completed with City Staff time; additional funding may be necessary to bring in outside speakers or forms of DEI workshops for City Staff.

4. Implement Performance Measurement Program
Summary: Implementing a performance measurement program involves establishing a systematic approach to evaluate and track the effectiveness and efficiency of the City. By measuring the current activities areas for improvement can be identified. The City can work with the employees to make adjustments in programs, policies and practices that can result in a better workplace environment, with improved organizational productivity and with optimal customer service.

General Governance and Fiscal Responsibility
FY 2025/26 Actions:

A. Complete analysis of FY 2024/2025 performance measures and report results and action plan to City Council in the FY 2025/2026 Budget.

B. Identify relevant Key Performance Indicators (KPIs) that align with City Council goals and ensure both customer service and a positive workplace experience are maintained.

C. Identify appropriate community survey tool(s) to evaluate customer satisfaction that match with the performance measurement goals.

D. Recognize/Evaluate existing Committees/Commissions and un-official Committees/Commissions and develop performance measures and/or guidelines for these designees.

Summary of Budgetary Projections for FY 2025/26: These actions can be completed with City Staff time.

5. Digital Communications
Summary: The City continues to effectively utilize digital communications to keep the community engaged, informed, and connected. Regular updates to the City’s website, email alerts, the weekly e-newsletter (Solana Beach Weekly Update), and active use of social media platforms (Facebook, Instagram, Threads & LinkedIn) allow the City to promptly share important information regarding City services, programs, news, and events. In the coming year, there will be a concentrated effort to expand the City’s social media presence and maximize the use of digital platforms to better promote and grow community forward programs, events and initiatives, such as the City of Kindness Initiative. Social media accounts will focus on key news updates, special events, and specific programs like the Junior Lifeguard Program, Summer Day Camp Program, and various special events to ensure residents stay informed about important updates and opportunities. By incorporating the following actions, the City can effectively leverage its digital outreach as a tool for community engagement and promotion of City programs, events, and initiatives.

FY 2025/26 Actions:

A. Continue to increase community engagement by growing the City’s social media accounts and providing useful and community focused information and posts.

B. Provide training for City Staff to ensure social media accounts are managed responsibly and content is appropriate and reflective of the City.

C. Regularly monitor social media channels for comments, messages, and mentions to ensure information is consistent with City-driven information.

D. Create partnerships with local businesses and organizations to amplify the reach of City messages and events on social media.

E. If possible, track key metrics such as reach and engagement to measure the effectiveness of social media efforts and to inform future communication to residents and businesses.

F. Evaluate the effectiveness of current social media strategies and make adjustments as necessary to better align with community interests and engagement goals.

General Governance and Fiscal Responsibility
Summary of Budgetary Projections for FY 2025/26: Most of the social media tasks are completed by City Staff. The City does pay approximately $90 a month for the Constant Contact notification system.

6. Cyber Security Expansion- Awareness Training, Business Continuity & Disaster Recovery
Summary: The City made significant strides in strengthening cybersecurity infrastructure and operational readiness. A full deployment of a Cybersecurity Operations System was completed, providing enhanced visibility and threat detection across the network. Staff refined the Disaster Recovery and Business Continuity Plan by improving network redundancy through the installation of UPS battery backups and rewiring of the switch stack and patch panel infrastructure for greater efficiency and reliability.

In parallel, the City launched a comprehensive Cybersecurity Awareness Program, which included four quarterly phishing campaigns, remediation training for participants, one citywide cybersecurity awareness survey, and a third-party cybersecurity assessment to evaluate current practices and identify risks. Additionally, the city has partnered with local cybersecurity groups such as the Cybersecurity and Infrastructure Security Agency (CISA) for external penetration testing done bi-weekly to the network.

FY 2025/26 Actions:

A. Implement cybersecurity incident response protocols based on NIST guidelines, including reporting and escalation procedures.

B. Expand cybersecurity training offerings with role-specific modules for staff handling sensitive data.

C. Conduct an annual tabletop exercise to test Business Continuity and Disaster Recovery readiness.

D. Establish a recurring schedule for backup system audits and validation tests.

E. Review and update the City's Information Security Policies to reflect evolving cybersecurity threats and best practices.

F. Develop and adopt a Administrative Policy for AI Technology Use in the Workplace.

Summary of Budgetary Projections for FY 2025/26:

Core cybersecurity infrastructure is in place; current efforts will focus on training, policy development, and testing. All anticipated costs are included within the existing IT budget allocations.

General Governance and Fiscal Responsibility

7. Unified Communications
Summary: The City continued its initiative to modernize and unify its communication platforms during FY 2024/25. Staff completed an internal audit to remove unused phone lines, and public Wi-Fi was successfully expanded to La Colonia Park and Fletcher Cove.

Council approved a new vendor for the City’s phone system, and deployment is scheduled for the upcoming fiscal year. In addition, Council Chambers technology was upgraded to allow remote participation by Council, Staff or presenters, including the installation of voting PC monitors, kiosk displays, enhanced sound with hard-wired microphones, and streamlined AV switching infrastructure. Internally, the City launched a centralized knowledge base for staff, improving information access and support across departments.

FY 2025/26 Actions:

A. Complete migration to the Council-approved cloud-based phone system.

B. Integrate Microsoft Teams with the new phone system for unified communications across devices and locations.

C. Monitor and evaluate public Wi-Fi performance; consider expansion to additional parks and facilities as needed.

D. Continue refinement of Council Chambers broadcasting to enhance the hybrid meeting experience.

E. Maintain and update the internal knowledge base to ensure timely access to support documentation and FAQs.

Summary of Budgetary Projections for FY 2025/26:

Budget will support phased implementation of the new phone system and Teams integration.

All other tasks, including Wi-Fi monitoring and knowledge base maintenance, will be managed with existing IT resources and Staff time.

8. North County Transit District (NCTD) Property Planning & Coordination
Summary: The North County Transit District (NCTD) is the landowner for the property that includes the Solana Beach Train Station. This property has been explored for development over the last couple decades with a number of initiated solicitations for proposal. No development proposal is being pursued by NCTD at this time. The City continues to meet with NCTD as-needed on the planning and public agency use and/or development of the NCTD site and related public parking.

FY 2025/26 Actions:

A. Continue to work with NCTD on any proposed future development of the property, prioritizing public agency use and/or development that ties into the existing commercial Corridor.

B. Analyze the extension of the sidewalk on the west side of North Cedros to Cliff Street.

General Governance and Fiscal Responsibility
Summary of Budgetary Projections for FY 2025/26: These actions can be completed with City Staff time. If improvements along the property frontage are determined to be feasible, design and construction costs will be identified and presented to Council for consideration.

9. Business District Collaboration
Summary: The City understands the value of a strong business sector and what it can provide for the overall benefit of the community. A thriving business community provides economic value, job opportunities and entertainment options for those the live, work and play here. The City can assist the business community through many avenues, including special event collaborations, operations efficiencies and strengthening relationships with the various districts. The City is committed to working collaboratively with the businesses to enhance the vibrancy of the community, and all that live here.

FY 2025/26 Actions:

A. Continue working with the business districts through the Business Liaison committee to strengthen the relationship between the City and business leaders.

B. Continue to look at City operational efficiencies to assist the businesses with permits and inspections.

C. Collaborate with the business districts on special events to serve the residents and bring in visitors and new business opportunities
Summary of Budgetary Projections for FY2025/26: At this time, only Staff time is anticipated to continue collaboration with the business districts. If there are joint opportunities that the City can assist with, there may be minimal costs associated.

10. Facilities/Asset Replacement Master Plan
Summary: The purpose of the facilities/asset replacement master plan was to identify costs and funding for the replacement and/or renovation of City facilities and existing assets, including buildings, parks, beach stairs, equipment, vehicles, computers, and furnishings.

The City completed a condition assessment and associated costs for all City facilities.

Starting in FY 2014/15 through FY 2024/25, Council had authorized a total of $2,371,000 for this Master Plan. The FY 2025/26 objective is to keep funding this Master Plan and completing necessary maintenance projects at City facilities.

FY 2025/26 Actions:

A. Update City facility/asset inventory list on an annual basis and prioritize maintenance and replacement costs.

B. Continue funding Facilities Replacement Fund on an annual basis. Funding will be based on a formula applied equal to 50% of the annual depreciation value building & improvement assets for the prior fiscal year end.
• FY 2025/26 formula-based transfer is approximately $300k for General Fund.

General Governance and Fiscal Responsibility
C. Continue funding the Asset Replacement Fund on an annual basis based on a formula applied equal to 50% of the annual depreciation value of vehicles & equipment assets for the prior fiscal year end.
• FY 2025/26 formula-based transfer is approximately $172k for General Fund.

D. Create a position to oversee asset management and contracts.

E. Purchase an asset management software program.

Summary of Budgetary Projections for FY 2025/26: The costs to fund facility and asset replacement are significant. Recommended transfers for FY 2025/26 Budget include, $300,155 to Facilities Replacement from General Fund Reserve for Public Facilities, and $172,390 to Asset Replacement Fund from General Fund, pending final budget adoption.

The total expenditure budget for FY 2025/26 is $556,782 for the Asset Replacement Fund and $246,573 for the Facilities Replacement Fund, pending final budget adoption.

11. Proactively Pursue Measures to Reduce CalPERS Future Liabilities
Summary: Council established a PARS Pension Trust Fund in FY 2015/16 to fund Pension liabilities and has appropriated a total of $5,629,488.20 for unfunded pension liabilities through FY 2024/25. Including contributions and investment earnings, the pension liabilities fund had an account balance of $6,987,430.88 as of March 31,2025. The purpose of the establishment of this Trust would be to pay down the CalPERS unfunded future liability quicker and provide less volatility which would lower the overall costs to the City.

FY 2025/26 Actions:

A. Continue funding the PARS Trust Fund in FY 2025/26.

B. Consider the development of a Council Pension Funding Policy to address the City’s long-term pension obligations.

Summary of Budgetary Projections for FY 2025/26: Staff will request 35% of the fiscal year end surplus be deposited into the PARS Pension Trust Fund.

12. Proactively Pursue Measures to Reduce Other PostEmployment Benefits (OPEB) Future Liabilities Summary: Council established and is funding a PARS Post-Employment Benefits Trust Fund in FY 2015/16 to fund Other Post-Employment (Health) Benefits (OPEB) liabilities and has appropriated a total of $1,473,681 for unfunded OPEB liabilities through FY 2024/25.

Including contributions and investment earnings, the OPEB liabilities funds had an account balance of $1,993,200.02 as of March 31, 2025. The purpose of the establishment of this Trust would be to establish a long-term reserve to pay down the OPEB unfunded future liability quicker and provide less volatility which would lower the overall costs to the City.

Council approved as part of the FY’s, 2018/19 through 2025/26 adopted budgets an amount for the City’s OPEB obligation. These amounts were equal to the actuarially determined General Governance and Fiscal Responsibility
contribution (ADC) for the fiscal years as determined by Foster & Foster, Inc. The ADC includes annual pay-as-you-go benefit payments for retirees and PEMCHA administrative costs with the balance of the ADC being sent to the PARS Trust Fund for OPEB.

Establishing this funding mechanism in the adopted budgets resulted in a reduction in the City’s OPEB net liability by $2,750,870 from $4,454,874 in FY 2017/18, to $1,704,004 on June 30th, 2024. Staff will continue to fund an on-going budget line item equal to the ADC as determined by the OPEB actuarial valuation to address the City’s OPEB liability obligation.

FY 2025/26 Actions:

A. Continue funding the PARS Trust Fund in future Fiscal Years pursuant to Council direction.

Summary of Budgetary Projections for FY 2025/26: $139,300 is included in the FY 2025/26 budget.

13. City Hall Deferred Maintenance
Summary: During FY 2024/25, two HVAC units at City Hall were replaced, including resealing the roof ducts and replacing associated duct insulation. This project was completed in April 2025. Also in FY 2024/25, the elevator modernization project began and is expected to be completed by June 2025.

FY 2025/26 Actions:

A. Asphalt repairs to parking lot. This work may include removal of trees in the small islands in the interior of the parking lot.

B. Replace two HVAC units (with heat pumps) and perform corresponding duct work.

Summary of Budgetary Projections for FY2025/26: $60,000 for City Hall AC and duct work are expected to be appropriated in FY 2025/26 and FY 2026/27 Adopted Budgets.

There is $30,000 available in FY 2024/25 Adopted Budget for the parking lot repairs, that can be rolled over to FY 2025/26.

ONGOING PRIORITIES
& MONITORING

ONGOING PRIORITIES & MONITORING
The City has completed several integral capital projects and programs over the last fiscal year that are of priority to the City and require monitoring and/or reporting on a regular basis.

Additionally, there are a number of areas that as funding arises, or new programs, policies, or legislation are proposed, the City Council has identified a need to prioritize action and responsiveness. The following is a list of ongoing priorities for the City:

Housing and Homelessness:

A. Identify/pursue outside funding opportunities for development of lower and moderateincome housing.

B. Evaluate the potential to convert existing buildings to affordable housing.

C. Explore partnerships with developers to fund units within City-initiated housing projects, when feasible.

D. Support regional efforts and outreach to address opioid crisis, drug overdose (including prescription drugs) and homelessness problems.

Coastal and Environmental:

A. Coordinate with the City of Encinitas, USACE, and State Parks on Sand Replenishment Post-Construction Monitoring and Reporting.

B. Coordinate with SANDAG on regional shoreline monitoring, other coastal projects and Regional Beach Sand Project III.

C. Continued coordination of efforts with key parties including local, regional, State and federal regulatory and governing agencies for beach sand replenishment and retention projects as a key local sea level rise/climate change adaptation strategy.

D. Continue to identify and implement other SCOUP compatible projects in the City.

E. Monitor parking and access for Annie’s Canyon trail and update social media and other information sources to direct users to the Manchester Avenue Park and Ride.

F. Continue to reach out and educate all food generators who must comply with the requirements of SB 1383.

G. Continue to reach out and educate all businesses who must comply with the City’s Single-Use Plastics Ordinance.

H. Continue to use the latest available organic and nonchemical pesticides and eliminate any use of rodenticides in City’s Parks, rights of ways and public facilities.

I. Budget for ongoing infrastructure costs after project completion for such things as the replacement of sprinkler heads and other assorted needs.

J. Support and promote SEJPA and its efforts to develop a potable reuse program.

ONGOING PRIORITIES
& MONITORING
Circulation and Parking:

A. Monitor traffic and parking issues in neighborhoods related to beach and trail usage, and fairgrounds activities, as needed.

B. Explore the implementation of a circulator or alternative solution to expand mobility options for residents and visitors to move throughout the City, thereby reducing congestion and promoting sustainable solutions.

C. Prepare an annual Pavement Repair program to address City roadways requiring maintenance and repair.

D. Explore increased funding for maintenance of the Coastal Rail Trail.

E. Evaluate the development of a sidewalk installation policy.

F. Update the Arts Master Plan.

Land Use and Planning:

A. Monitor the regional circulation and land use plans, and any specific rail projects that could impact the City residents and businesses either directly or indirectly.

B. Monitor the development proposal for the North Bluff property on Border Avenue in Del Mar.

C. Monitor Fairgrounds plans and projects.

D. Research ADU and affordable ADU incentive programs.

E. Conduct Short Term Vacation Rental (STVR) Monitoring and Compliance Review.

F. Continue to work with SDGE to advance the remaining Utilities Undergrounding Projects (UUP) toward construction.

G. Continue to seek out opportunities for a community dog park.

H. Ensure compliance with organic waste management regulations in new developments.

City Organizational Effectiveness
A. Conduct a Transient Occupancy Tax (TOT) local hotel audit.

B. Sustain and improve the City’s records management plan to ensure efficient and effective access and retention of City records for the purpose of identifying, protecting, and preserving the official history of City actions.

C. Development of City Donation, Dedication and Memorial Policies.

D. Identify and prioritize Cybersecurity training modules and implement phishing campaigns with Staff to test and correct, if needed, response to cyber threats.

ONGOING PRIORITIES
& MONITORING
Work Plan Accomplishments for Fiscal Year
2024/25
• Installed Speed Cushions on North Granados and Highland Drive at Community's Requests
• Completed construction of La Colonia Tot Lot
• Completed FY 2024/25 ADA Ramp Project (using CDBG funding) • Completed construction of the Street Repair Project FY 2023/24 • Completed Design FY 2024/25 and 2025/26 Street Repair Project • Completed FY 2022-23 Sewer and Storm Drain Repair Project • Awarded construction bids for the Fire Station Generator • Completed City-Wide Traffic Signal Upgrade Project – Phase I • Installed two new HVAC units at City Hall
• Installed new HVAC control system at City Hall
• Completed City Hall Elevator Modernization
• Replaced SCBA Fire Station Compressor
• Installed new air compressor at the Fire Station
• Renovated Fire Station Kitchenette
• Completed La Colonia Fire and Burglary Alarm Upgrades • Installed Mini Split AC Unit at Public Works Yard
• Completed South Acacia and South Sierra Sidewalk Improvements and Tree Planting • Completed maintenance improvements to CRT DG Walking Path • Initiated Hwy 101 Bench Refurbishment Project
• Initiated Hwy 101 Tree Grate Replacement Project
• Launched CUPCCAA vendor form on City website in coordination with Public Works and started a Qualified Bidders List for Contractors (CUPCCA) • Replaced carpet in several City Hall Offices
• Installed 23 Full Capture Storm Drain Devices
• Completed City Hall Fire Safety Magnetic Door Upgrades • Refurbished Fletcher Cove Shower Wall
• Completed the Highland Median Planting Project
• Received DRP approval for the Marine Safety Center
• Completed PRISM Cyber Insurance and Allocation/Fee Study audits, including asset inventory and detailed questionnaires
• Installed Audio/Visual systems including: Fire EOC TV/cabling, City Manager conference area, Council Chambers cameras, microphones, recording devices, and dais presentation displays
• Deployed digital Council History display in City Hall gallery, replacing legacy framed photos with a centralized digital screen
• Migrated on-premises OCR server to Laserfiche cloud and launched public portal for records access
• Completed Network Cleanup Project with full patch panel replacement and cable reorganization in server rooms

ONGOING PRIORITIES
& MONITORING
• Conducted quarterly phishing simulation campaigns, annual cybersecurity awareness training, and cybersecurity staff survey
• Deployed Security Operations Center with managed detection, endpoint response, and advanced-antivirus capabilities
• Issued five IT-related Requests for Proposals; completed Video Production Services RFP and initiated four others (Surf-Camera Monitoring, Website Hosting, Unified Telecommunications, Internet Service Provider)
• Migrated City’s Zoom platform to Zoom for Government infrastructure • Zero drownings or deaths on COSB public beaches
• Marine Safety were able to hire ten seasonal lifeguards during a very challenging job market. Much of this is due to department involvement regionally. • Regional training involvement. Marine Safety hosted one of the three San Diego regional lifeguard academies. Marine Safety has staff that are lead instructors for this academy and involved in the other two as well. Department staff are also instructors for the San Diego regional Emergency Vehicle Operations and Rescue Watercraft courses held through Miramar College.
• Continued Community Outreach; teaching Sidewalk CPR during Kindness Week, several beach and ocean safety tours and discussions for groups at Marine Safety Headquarters, and attendance at numerous job fairs. Restructure of Marine Safety’s organizational chart. This consisted of a reclassification of one of the three Sergeant positions to a Lieutenant, with the addition of two full-time Senior Lifeguards. This reclass allows Marine Safety to have a balanced structure on each side of the week ensuring adequate full-time coverage rather than seasonal coverage for permanent positions. • Lifeguards responded to a mutual aid, CPR on the beach at our south border with Del Mar Lifeguards and Fire.
• Lifeguards responded to a Mass Casualty Incident (MCI) at North Torrey Pines for an overturned Panga with multiple ocean rescues and major medical aids to those on board.

Responding agencies included multiple lifeguard and fire departments along with federal resources.
• Lifeguards responded in conjunction with SBFD multiple times for calls for service in Annie’s Canyon/San Elijo Lagoon utilizing 4x4 lifeguard vehicles for increased efficiency • Multiple other panga landings in Solana Beach, where SBLGs aided to prevent any injuries, environmental harm, and safe removal of vessels off the beach that had been abandoned from the event.
• Utilized a PWC (Unit 2491) to rescue and prevent an adrift 35’ sailboat from coming ashore at Fletcher Cove on a high surf 4-6' day. Worked with Del Mar Lifeguards to anchor the vessel offshore for two days while arranging a vessel tow into San Diego Bay. These efforts prevented not only a costly clean-up, but also an environmental emergency as the vessel surely would have been compromised in the large surf spilling fuel, oil and items aboard into the ocean.
• Prevention of a 30’ whale carcass from drifting ashore by utilizing PWC 2491 to tow the carcass off-shore far enough to then hand off to a larger tow vessel. • Participated in SDR- ALERT Mass Rescue Operation (MRO) Training • Hosted 2 SDR-ALERT meetings (bi-monthly) at Solana Beach Community Center

ONGOING PRIORITIES
& MONITORING
• Became members and began attending the California Marine Safety Chiefs Association meeting
• One of the founding members of the San Diego Marine Safety Chiefs Association board • Facilitated a Citywide Employee Satisfaction Survey
• Added CalPERS 457 Plan as an additional carrier.
• Opened 15 recruitments, which resulted in receiving 250 applications • HR reviewed over 150 applications that were sent to Subject Matter Experts (SMEs) for further review
• HR administered 2 performance exams – Management Analyst and Marine Safety Lieutenant
• HR facilitated and interviewed 76 candidates, including seasonal staff • Hired and onboarded 40+ new employees, including seasonal staff • Participated and managed the interactive discussion process for employees with vaccine mandate exemption requests
• HR successfully completed Plan Year 2025 Open Enrollment and hosted a virtual open enrollment Health Fair.
• Managed employee leaves (FMLA/ CFRA/PDL/ADA)
• COBRA Benefit Management and Retirement Administration • Processed 15 new Worker’s Compensation claims
• Managed and handled various employee relation matters • Conducted various salary and compensation surveys
• Performed policy review and updates
• Hosted annual Employee Appreciation Party
• Awarded Employee recognitions (Star Award)
• Conducted employee trainings as well as New Hire Orientations • Issued RFP for City Housing Site (The Pearl Project)
• Created building permit flow chart
• Implemented SolarApp processing
• Implemented electronic submittal and review process and procedures for ministerial and discretionary permit processing
• Prepared Discretionary Project flowchart
• Added Business Resources webpage that includes information about how to open a business
• Implemented new Temporary Use Permit standards for outdoor dining. • Updated City’s Density Bonus regulations to be consistent with State Law • Adopted an ordinance that updates various sections of the Solana Beach Municipal Code in conformance with the City’s Housing Element Programs • Approved and submitted City’s Annual Progress Report to HCD • Adopted regulations to limit sale and distribution of Kratom • Updated City’s Fee Schedule
• Prepared a response to SANDAG’s LOSSAN Rail Realignment Notice of Preparation • Participated in SANDAG’s LOSSAN Rail Realignment Value Analysis • Purchased two new hybrid vehicles for code compliance staff • Issued RFP and awarded contracts for Planning and Environmental Services

ONGOING PRIORITIES
& MONITORING
• Completed FY 2024 Audit and Annual Comprehensive Financial Reporting (ACFR) • Implemented eTrakit for some online permit applications and business certificate renewals
• Implemented new module in Munis for monthly TOT/STVR tax collections • Implemented TravelBank to streamline CalCard administration, reporting, and processing • Installed a permanent beach litter clean-up station at Fletcher Cove • Adopted the Climate Action Plan Update
• Adopted an internal Environmentally Preferable Products and Services Procurement Policy (Admin Policy No. 46)
• Provided technical assistance and inspected all SB1383 Tier 1 and Tier 2 Food Generators and Food Recovery Organizations for organics and edible food recovery, resulting in 100% compliance
• Through the City’s Franchise Agreement with EDCO, 41.9 tons of bulky waste was collected, 40 cubic yards of mulch was given out, and 5,360 pounds of paper was shredded, all at no-cost to residents, through the Fall Recycling Day and Spring Curbside Bulky Pickup Day.
• Purchased new replacement fire aerial ladder truck
• Purchased first ever all electric vehicle for the City’s fleet (Parks and Recreation truck) • Completed Highland Drive median landscaping project which included a new temporary art location
• Marine Safety Center Council project approval
• Completed La Colonia Tot Lot
• Completed comprehensive User Fee Update
• Initiated La Colonia Master Plan Update to include vacant property to the north • Completed Sewer Rate Study and adopted new sewer rates • Adopted Legislative Policy
• Approved and installed new Pollinator Garden at City Hall • Adopted new Cal Fire Hazard Severity Zone Maps
• Hosted the Sheriff’s Spanish Academy at La Colonia Community Center in Collaboration with San Diego Sheriff’s Office, 52 graduates.
• Collaborated with Solana Beach Community Connections to increase senior programming available to the community including game days, lecture series, and a book & writing club.
• Coordinated the first Move Night at La Colonia in collaboration with the Boys & Girls Club of Northwest San Diego, which helps expand outreach to the community with our events. • Installed a new refillable water & drinking fountain station at La Colonia Community Center.
• Hosted a Fall Prevention Clinic for seniors at La Colonia Community center, which was run by Scripps.
• Hosted Solana Beach School District ELAC (English Learner Advisory Committee) meeting at La Colonia Community Center
• Summer Day Camp is sold out for campers, and LITS with After Care spots near capacity. • Summer Day Camp participants will partake in a Bike Rodeo hosted by the San Diego Bike Coalition to help the youth better understand bike/e-bike safety and the rules of the road.

CITY COUNCIL ACTION:
______________________________________________________________________ _______________________________________
AGENDA ITEM # A.7.

STAFF REPORT

CITY OF SOLANA BEACH
TO: Honorable Mayor and City Councilmembers
FROM: Alyssa Muto, City Manager
MEETING DATE: June 18, 2025
ORIGINATING DEPT: City Manager/Human Resources – Pouneh Sammak, Human Resources Director
SUBJECT: City Council Consideration of Resolution 2025-074 Adopting Fiscal Year 2025/2026 Salary, Classification and Compensation Plans for the Non-Represented (Executive
Management, Mid-Management, Management and
Confidential) Employees, the Solana Beach
Miscellaneous Unit (SBEA-MISC.), the Marine Safety Unit (SBEA-MSU), the Solana Beach Firefighters Association
(SBFA), City Manager, Part-Time/Seasonal/Temporary
Employees, and Elected Officials
BACKGROUND:

In accordance with the City’s Personnel Rules and Regulations, Section 8.10, the City Council authorizes and approves all salary and benefit plans for employees and establishes salary ranges pursuant to the recommendation of the City Manager. Salary and benefits for all employees (Represented, Executive Management, Mid-Management, Management, Confidential, and Temporary/Part-time Employees) are included in the Salary and Compensation Plan approved by the City Council each fiscal year. The City Council must approve a Salary and Compensation Plan for all employees to coincide with fiscal appropriations of a new fiscal year and new budget. Subsequent revisions to the adopted Salary and Compensation Plan will be recommended by the City Manager pursuant to City Personnel Rules and approved by the City Council.

DISCUSSION:

This item is before the City Council for consideration of Resolution 2025-074 (Attachment 1) to approve the City’s Salary and Compensation Plan (the “Plan”) (Schedules 1-6) for represented and unrepresented employees for FY 2025/2026, and to authorize the City Manager to make any future necessary changes to the City’s salary schedules to remain in compliance with applicable State and/or Federal laws.

The City Manager recommends approval of the FY 2025/2026 Salary & Classification Plan (Schedules 1-6; Attachments 2 - 7) for all City employees. The proposed Plan includes the negotiated and approved salary and benefit increases for Solana Beach Employee Association, Miscellaneous (SBEA-MISC.), Solana Beach Employee June 18, 2025
All Employee Groups FY 2025/2026 Compensation Plans and Classification Updates

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Solana Beach City CouncilJune 18, 2025

Solana Beach City Council
June 18, 2025