Vacancies Term Subject to Majority Vote,
Appointment by:
Budget and Finance Commission: 2 vacancies total
Two (2) vacancies 2 Years
Until End of Jan 2028
o MacDonald
o Becker
Climate & Resiliency Commission: 4 vacancies total
Three (3) vacancies
Residents
2 Years
Until End of Jan 2028 o Council-at-large
One (1) vacancy
Professional
(resident or non-resident)
2 Years
Until End of Jan 2028 o Council-at-large
Parks and Recreation Commission: 3 vacancies total
Three (3) vacancies 2 Years
Until End of Jan 2028 o Council-at-large
Public Arts Commission: 3 vacancies total
Three (3) vacancies 2 Years
Until End of Jan 2028 o Council-at-large
View Assessment Commission: 4 vacancies total
Four (4) vacancies 2 Years
Until End of Jan 2028
o MacDonald
o Zito
o Council-at-large (2)
Notification/Recruitment Efforts
The “Maddy Act” posting provides a notice of the status of member appointments for general reference. In addition, a vacancy notice (Attachment 3) was prepared and posted, and various efforts were made to seek public interest by informing existing members, posting of vacancy notices, Council and Staff noticing, City Council meeting announcements, the City eblasts to an estimated 2,000+ subscribers, and paid advertising in both the Coast News and Solana Beach Sun.
Application Process
The Application deadline was posted as January 20, 2026, at 5:30 p.m. to process and distribute all applications with the agenda binders that same week. Since the number of applications needed was received by this date, no deadline extension is needed.
Item L.1
January 28, 2026
2026 Annual Citizen Commission Appointments
Resubmittal applications were accepted from members re-applying for the same position while new applications were submitted from new applicants or current members applying for a different Commission. Applications were reviewed for completion of contact information, commission choices, and verification of requirement criteria, such as property ownership, which is required for two Commissions (Budget and Finance and View Assessment).
Distribution to Council
This Staff Report contains the Application Worksheet (Attachment 5) outlining each applicant’s Commission selection(s) and their respective application submittals (Attachment 7). The applications are on file with the City Clerk’s Office for viewing and were distributed to the City Council with this Agenda’s full packet.
Appointment Protocol
As outlined in the Solana Beach Municipal Code (SBMC) Section 2.60, appointment designations are noted for each individual Commission, whether a position is appointed by Council-at-Large or whether it is designated by an individual Councilmember. These appointment designations are noted on the Public Notice. All nominations are subject to a majority vote of the City Council.
Member Requirements
SBMC Sections 2.64, 2.72, 2.74, 2.84, Resolution 2007-160 (for Budget Finance), and Resolution 2025-003 (Climate & Resiliency) outline the duties of the Commissions; however, there are other duties and assignments determined by Council, Staff, and the Commissions in relation to various opportunities and issues that occur throughout the year.
To carry out the Commission’s work, SBMC Section 2.60.010 outlines the requirements of meeting attendance. As a legislative body, like the City Council, Citizen Commissions are required to fulfill a responsibility of participating in each meeting for all matters brought before the Commission. As requested last year, an attendance status (Attachment 4) has been provided. In addition, the Commission Handbook, provided to each appointed/reappointed member, and posted online, provides various other requirements, regulations, guidelines, and procedures for Commission members.
Member Appointment Term
The appointment date of Commission members triggers deadlines for required tasks and filing paperwork. The appointed member may begin participating in Commission work once they have been sworn in by taking their Official Oath, administered by the City Clerk’s Office. The swear-in may take place before or at the first meeting of the Commission as coordinated with the City Clerk’s Office. Member terms end on January 31st or once an appointment is made to refill their post, whichever occurs first.
CEQA COMPLIANCE STATEMENT: N/A
FISCAL IMPACT:
Item L.1
January 28, 2026
2026 Annual Citizen Commission Appointments
There is limited fiscal impact associated with this annual appointment process. Pursuant to City Council Policy 19 (Background Check Requirements for Citizen Commissions), new appointees are required to complete a background check at the expense of the City. The City incurs the cost for background checks for new Commission members.
WORK PLAN: N/A
OPTIONS:
• Approve Staff recommendation and proceed with appointments for vacancies. • Do not approve Staff recommendation and extend deadline to receive new applications, allowing expiring positions to remain vacant until refilled.
CITY STAFF RECOMMENDATION:
Staff recommends that the City Council:
1. Appoint two (2) members to the Budget and Finance Commission nominated/appointed by individual Councilmembers (MacDonald, Becker) for twoyear terms.
2. Appoint four (4) members to the Climate & Resiliency Commission nominated/appointed by Council-at-large for the following positions:
a. Three (3) Resident appointments for a two-year term. b. One (1) Professional appointment for a member of the environmental and/or scientific community (resident or non-resident) for a two-year term.
3. Appoint three (3) members to the Parks and Recreation Commission nominated/appointed by Council-at-large for two-year terms.
4. Appoint three (3) members to the Public Arts Commission nominated/appointed by Council-at-large for two-year terms.
5. Appoint four (4) members to the View Assessment Commission:
nominated/appointed by individual Councilmembers (MacDonald, Zito) and two positions by Council-at-large, all for two-year terms.
_________________________
Ayssa Muto, City Manager
Attachments:
1. Policy No. 5
2. Maddy Act Posting
Item L.1
January 28, 2026
2026 Annual Citizen Commission Appointments
3. Vacancy Notification Flyer
4. Existing member’s attendance
5. Worksheet outlining openings and applicants’ choice(s)
6. List of Applicants
7. Applications (under separate binder)
Item L.1
CITY OF SOLANA BEACH Policy No. 5
COUNCIL POLICY
Adopted: May 15, 1989
Revised: January 23, 2008 by
Resolution 2008-23
GENERAL SUBJECT: Citizen Boards, Commissions & Committees SPECIFIC SUBJECT: Appointments of Citizens to Boards, Commissions, Committees and Task Forces.
PURPOSE:
The purpose of this policy is to establish a consistent process and procedure for appointments to City sponsored Citizen Boards, Commissions, Committees and Task Forces.
POLICY STATEMENT:
Appointments to Citizen Boards, Commissions, Committees and Task Forces are made in accordance with the municipal code and/or specific guideline, as provided, to provide consistency.
POLICY PROCEDURES:
1. All private citizens interested in serving on any Board, Commission, Committee or Task Force or similar group must complete and file with the City Clerk a Citizen Interest Form (application) which may be obtained from the City Clerk’s office.
2. Nominations
Councilmembers may nominate private citizens for appointment subject to ratification by a majority of the City Council. Such ratification shall take place at a regular City Council meeting and a duly docketed agenda item.
3. Appointment Protocol
a. Appointments will be made in accordance with municipal code requirements. For example, the municipal code may require that a Commission have five positions appointed by individual
Councilmembers.
b. Appointments that are not outlined in the municipal code and are at-large appointment positions may be nominated by any
Councilmember. In the event of multiple appointments,
appointments may be divided among individual Councilmembers to share the appointment responsibilities. If the appointments are ATTACHMENT 1
Item L.1
shared, it will be for that one time and will not be construed as official individual appointments that would carry forward. c. The decision to proceed with an individual appointment alternative for at-large positions will be subject to majority vote of the City Council with such vote taking place at a regular City Council Meeting.
4. Appointments to Outside Agencies
When the City is asked by an outside agency to recommend a private citizen to serve on a Board, Commission, Committee or Task Force or similar group, such recommendation shall be made by the Council and approved by a majority vote of the City Council.
Item L.1
PUBLIC NOTICE
CITY OF SOLANA BEACH
LOCAL APPOINTMENTS LIST
NOTICE TO THE PUBLIC: In compliance with the requirements of the Maddy Act, Government Code 54972, the following appointment list is provided for public notice. The Solana Beach Local Citizen Commission Appointments List shows all current members, the term expiration date, and the current membership requirements.
Post Member Appointed
Date
Post’s Term
Expiration Date
Post
Appointed By
BUDGET & FINANCE: 5 members
Must be at least 18 years old, a city resident & property owner within the City of Solana Beach. All members serve at the pleasure of each individual Councilmember. All nominations are subject to a majority vote.
Post 1 Christopher Maulik 01-29-25 January 2027 Heebner Post 2 Jeff Lyle 01-29-25 January 2027 Edson (District 3) Post 3 Kenneth Zito 01-29-25 January 2027 Zito (District 1) Post 4 Scott Hermes 01-25-24 January 2026 Becker (District 2) Post 5 Larry Marmon 01-25-24 January 2026 MacDonald (District 4) CLIMATE & RESILIENCY: 9 members
Five Members must be at least 18 years old and a resident within the City of Solana Beach Two members must be professionals from the scientific or environmental community. Resident or Non-Resident Two Current Councilmembers, or 1 Councilmember and one from another position, as determined by Council.
All members are appointed by the Council at-large. All nominations are subject to a majority vote.
Residents 5 residents
Post 1 Mika Nagamine 01-29-25 January 2027 Council at-large Post 2 Cindi Gilliland 01-29-25 January 2027 Council at-large Post 3 Heidi Dewar 01-24-24 January 2026 Council at-large Post 4 Heather Rock 01-29-25 January 2026 Council at-large Post 5 Lane Sharman 01-24-24 January 2026 Council at-large Post Float Ken Flagg (in lieu of Council) 01-29-25 January 2027 Council at-large Professionals 2 individuals
Post 1 Jenny Byars 01-29-25 January 2027 Council at-large Post 2 Michelle Buchanan 04-10-24 January 2026 Council at-large Councilmember(s) 2 Councilmembers
Post 1
Post 2
David A. Zito - primary
Kristi Becker - not voting
12-11-24
12-11-24
December 2026
December 2026
City Council
City Council
PARKS & RECREATION: 7 members
Must be at least 18 years old and a city resident within the City of Solana Beach. All members are appointed by the Council at-large. All nominations are subject to a majority vote.
Post 1 Stan Bergum 01-29-25 January 2027 Council at-large Post 2 Matt Linnik 01-29-25 January 2027 Council at-large Post 3 H. Shane Noroozi 01-24-24 January 2026 Council at-large Post 4 Michael Budelsky 01-24-24 January 2026 Council at-large Post 5 Roderick Stewart 02-28-24 January 2026 Council at-large Post 6 Debbie Day 01-29-25 January 2027 Council at-large Post 7 Carol Jensen 01-29-25 January 2027 Council at-large PUBLIC ARTS: 7 members
Must be at least 18 years old and a city resident within the City of Solana Beach. All members are appointed by the Council at-large. All nominations are subject to a majority vote.
Post 1 Mariel Mayer 02-28-24 January 2026 Council at-large Post 2 Shawn Hethcock 01-24-24 January 2026 Council at-large Post 3 Deborah Sweet 01-29-25 January 2027 Council at-large Post 4 Halle Shilling 01-29-25 January 2027 Council at-large Post 5 Jeanie Grischy 01-29-25 January 2027 Council at-large Post 6 Mark Mennie 01-24-24 January 2026 Council at-large Post 7 Vicki Cypherd 01-24-25 January 2027 Council at-large VIEW ASSESSMENT: 7 members
Must be at least 18 years old, city resident, & property owner within the City of Solana Beach. Five members serve at the pleasure of each individual Councilmember and two members are appointed by the Council at-large. All nominations are subject to a majority vote.
Post 1 Robert (Bob) Moldenhauer 01-29-25 January 2027 Heebner Post 2 Rich Villasenor 01-29-25 January 2027 Edson (District 3) Post 3 Frank Stribling 01-24-24 January 2026 Council at-large Post 4 Pat Coad 01-24-24 January 2026 Council at-large
Post 5 Robert (Bob) Zajac 01-24-24 January 2026 MacDonald (District 4) Post 6 Matthew Cohen 01-29-25 January 2027 Becker (District 2) Post 7 Linda Najjar 01-24-24 January 2026 Zito (District 1) Citizen Interest Forms (Applications) are available on-line at www.cityofsolanabeach.org or at the City Clerk’s Office, City of Solana Beach, 635 S. Highway 101, Solana Beach, CA 92075, 858-720-2400 for the expiring positions among these Citizen Commissions.
Applications will be accepted until Tuesday, January 20, 2026, 5:30 p.m.
City Council is scheduled to make appointments at the Wednesday, January 28, 2026, 6:00 p.m. City Council Meeting.
I hereby certify that this notification was posted on November 22, 2025 at City Hall’s bulletin board and on the City’s website. Angela Ivey, City Clerk
Item L.1
PUBLIC NOTICE
CITY OF SOLANA BEACH VOLUNTEERS SERVING ON BEHALF OF THE CITY COUNCIL Applications will be accepted until Tuesday, January 20, 2026, 5:30 p.m.
City Council is scheduled to make appointments at the January 28, 2026 City Council Meeting.
BUDGET & FINANCE Two (2) vacancies - terms will expire end of January 2028 This Commission provides input to City Council regarding the City's operating budget.
Regular Meeting Schedule: Mon prior to 2nd Council Mtg of the month at 6:00 p.m. or as scheduled.
Composition: 5 members appointed by each Councilmember.
Member Requirements: At least 18 yrs. old * Resident of the City * Property owner within the City.
CLIMATE & RESILIENCY Four(4) vacancies – 4 terms will expire end of January 2028 3 Citizen/Resident Positions // 1 Professional Position This Commission participates in reviewing certain matters regarding reducing the City’s greenhouse gas (GHG) emissions and implementing the Climate Action Plan.
Regular Meeting Schedule: Currently meets 3rd Wednesday of certain months at 5:30 p.m.
Composition: 9 members: 7 members each appointed by the Council at-large, 2 Councilmembers (or 1 Councilmember & 1 citizen or professional) Member Requirements: 5 Citizens/Residents - At least 18 yrs. old * Resident of the City 2 Professionals - At least 18 yrs. old * Must be from the environmental or scientific community. * Resident or Non-resident
2 Current Councilmembers (or one voting Councilmember and one person from another position, as determined by Council)
PARKS & RECREATION Three (3) vacancies – terms will expire end of January 2028 This Commission participates in reviewing certain matters regarding the City's parks, programs, and conducts certain City events.
Regular Meeting Schedule: 2nd Thursday of each month at 4:00 p.m.
Composition: 7 members who are each appointed by the Council at-large.
Member Requirements: At least 18 yrs. old * Resident of the City.
PUBLIC ARTS Three (3) vacancies – terms will expire end of January 2028 This Commission participates in reviewing certain matters regarding community art opportunities and conducts certain City events.
Regular Meeting Schedule: 4th Tuesday of each month at 5:00 p.m.
Composition: 7 members who are each appointed by the Council at-large.
Member Requirements: At least 18 yrs. old * Resident of the City.
VIEW ASSESSMENT Four (4) vacancies – terms will expire end of January 2028 This Commission is tasked with reviewing feasible solutions for development when an assessment request is filed and makes definitive decisions on projects utilizing the City's adopted guidelines/toolkit.
Regular Meeting Schedule: 2nd Tuesday of each month at 6:00 p.m.
Composition: 7 members: 5 members appointed by each Councilmember and 2 members appointed by the Council at-large.
Member Requirements: At least 18 yrs. old * Resident of the City * Property owner within the City.
Budget & Finance Climate Action Parks & Recreation Public Arts View Assessment All appointments are subject to a majority vote of the City Council. Attend a Citizen Commission public meeting. Agendas are posted on the City’s website. See the City’s website for members, expiring positions, and further information.
Citizen Interest Forms (Applications) and additional information on the Commissions can be found on the City’s website at www.cityofsolanabeach.org (Tabs: Government, Citizen Commissions) OR by contacting the City Clerk’s Office (858) 720-2400. Please contact the City Clerk with any questions regarding the recruitment/appointment process.
CITY’S CITIZEN COMMISSION POSITION OPENINGS
Item L.1
Bold names are expiring and possibly re-applying.
Budget & Finance Commission
Members 2025 Total
Meetings Held
Reg
Mtgs
Attende
d
Special
Mtgs
Attended
Total
Meetings
Attended
Christopher Maulik 1 3 4
Jeff Lyle 3 3 6
Kenneth Zito 3 3 6
Scott Hermes Re-applying 3 3 6
Larry Marmon Re-applying
6 3 2 5
Climate & Resiliency Commission
Members
2025 Total
Meetings
Held
Reg Mtgs
Attended
Special
Mtgs
Attended
Total
Meetings
Attended
Residents Posts
Mika Nagamine 5 0 5
Cindi Gilliland 5 0 5
Heidi Dewar Re-applying 5 0 5
Heather Rock Re-applying 3 0 3
Lane Sharman Not re-applying 4 0 4
Kenn Flagg 4 0 4
Professional Posts
Jenny Byars 4 0 4
Michelle Buchanan Re-applying
5 5 0 5
Parks & Recreation Commission
Members
2025 Total
Meetings
Held
Reg Mtgs
Attended
Special
Mtgs
Attended
Total
Meetings
Attended
Stan Bergum 7 2 9
Matt Linnik 7 2 9
H. Shane Noroozi Re-applying 8 1 9
Michael Budlesky Re-applying 6 1 7
Rod Stewart Re-applying 4 2 6
Debbie Day 7 1 8
Carol Jenson
11 8 2 10
Attachment 4
Item L.1
Citizen Commission Member Attendance Report
Public Arts Commission
Members
2025 Total
Meetings
Held
Reg Mtgs
Attended
Special
Mtgs
Attended
Total
Meetings
Attended
Mariel Mayer Re-applying 5 0 6
Shawn Hethcock Re-applying 6 0 6
Deborah Ann Sweet 4 0 4
Halle Shilling 7 0 7
Jeanie Grischy 6 0 6
Mark Mennie Re-applying 4 0 4
Vicki Cypherd
7 6 0 6
View Assessment Commission
Since there was only 1 meeting in 2025, 2024 was added since all the same members served Members
2025 (1) & 2024
(3) Total
Meetings Held
Reg Mtgs
Attended
Special
Mtgs
Attended
Total
Meetings
Attended
Bob Moldenhauer 3 0 3
Rich Villasenor 3 0 3
Frank Stribling Re-applying 3 0 3
Pat Coad Re-applying 3 0 3
Robert Zajac Re-applying 2 0 2
Matthew Cohen 3 0 3
Linda Najjar Re-applying
4 4 0 4
Item L.1
Stan Bergum (Council) 2027 Deborah Sweet (Council) 2027 Bob Moldenhauer (Heebner) 2027 G i
Mike Nagamine(Council) 2027 Matt Linnik (Council) 2027 Halle Shilling (Council) 2027 Rich Villasenor (Edson) 2027 Christopher Maulik (Heebner) 2027 Cindi Gilliland (Council) 2027 Debbie Day (Council) 2027 Jeanie Grischy (Council) Matthew Cohen (Becker) 2027 Jeff Lyle (Edson) 2027 Ken Flagg - In Lieu of
Councilmember (Council) 2027 Carol Jensen (Council) 2027 Vicki Cypherd (Council) 2027 Frank Stribling (Council) 2026re-applying Kenneth Zito (Zito) 2027 Heidi Dewar (Council) 2026
re-applying
H. Shane Noroozi (Council) 2026
re-applying
Mariel Mayer(Council) 2026
re-applying
Pat Coad (Council) 2026
re-applying
Scott Hermes (Becker) 2026
re-applying
Michelle Buchanan (Council) 2026
re-applying Jenny Byars (Council) 2027 David Zito 2027(Primary) Michael Budelsky (Council) 2026
re-applying
Shawn Hethcock (Council) 2026
re-applying
Robert (Bob) Zajac (MacDonald) 2026
re-applying
Larry Marmon (MacDonald) 2026
re-applying
Lane Sharman (Council) 2026
NOT re-applying
Heather Rock (Council) 2026
re-applying
Kristi Becker 2027
(non-voting)
Rod Stewart (Council) 2026
re-applying
Mark Mennie(Council) 2026
re-applying
Linda Najjar (Zito) 2026
re-applying
P
r
o
p
Budget & Finance Climate Action Parks & Recreation Public Arts View Assessment C
O
N
F
:
\
C
Last name First Name
D
a
t
1 12-12-25 Marmon Larry Only Choice
Re-applying
2 01-13-26 Hermes Scott Only Choice
Re-applying
3 01-12-26 Evans Al Only Choice
4 01-02-26 Buchanan Michelle Only Choice
5 01-04-26 Rock Heather Only Choice
Re-applying
Only Choice
Re-applying
6 01-20-26 Dewar Heidi Only Choice
Re-applying
8 01-20-26 Shoemaker Michele Only Choice
7 01-20-26 Cleary Matthew Only Choice
9 01-12-26 Budelsky Michael Only Choice
Re-applying
10 12-12-25 Stewart Rod 1st Choice
Re-applying
2nd Choice
Re-applying
11 01-20-26 Coolbaugh Gabrielle Only Choice
12 12-27-25 Hethcock Shawn Only Choice
Re-applying
13 01-07-26 Mennie Mark Only Choice
Re-applying
14 01-07-26 Mayer Mariel Only Choice
Re-applying
15 01-08-26 Klein Sharon Only Choice
16 01-08-26 Najjar Linda Only Choice
Re-applying
17 01-05-26 Coad Pat Only Choice
Re-applying
18 01-12-26 Stribling Frank Only Choice
Re-applying
19 12-22-25 Zajac Bob Only Choice
20 01-16-26 Noroozi Shane 2nd Choice
Re-applying
3rd Choice
Re-applying
1st Choice
Re-applying
0 Vacancies
Council OR
Other Member Type.
As determined by
Council
1 Vacancies
Professionals
Appointments by:
Council-at-large
3 Vacancies
Appointments by:
Council-at-large
4 Vacancies
Appointments by:
1-MacDonald ♦ 1-Zito ♦
2- Council
2 Vacancies
Appointments by:
1-Becker ♦ 1- MacDonald ♦
C
o
n
f
i
V
A
C
&
B
u
d
g
e
t
F
i
3 Vacancies
Appointments by:
Council-at-large
Date Rcvd
Members & Expiration Year
APPLICANTS
in order by 1st choices
City of Solana Beach Citizen
Commissions 2026
Appointments
Applicants are listed below in
order by their 1st choice.
Applications DUE January 20, 2026
3 Vacancies
Residents
Appointments by:
Council-at-large
Item L.1
City of Solana Beach
Citizen Commission Applicants
Deadline – January 20, 2026 by 5:30 p.m.
LIST OF APPLICANTS
Applicants
Last Name First Name
Application Complete Application Received
Buchanan Michelle Yes 01-02-26
Budlesky Michael Yes 01-12-26
Cleary Matthew Yes, minus References 01-20-26
Coad Pat Yes 01-05-26
Coolbaugh Gabrielle Yes 01-20-26
Dewar Heidi Yes 01-20-26
Evans Alvin Yes 01-12-26
Hermes Scott Yes 01-13-26
Hethcock Shawn Yes 12-27-25
Klein Sharon Yes 01-08-26
Marmon Larry Yes 12-12-26
Mayer Mariel Yes 01-07-26
Mennie Mark Yes 01-07-26
Najjar Linda Yes 01-08-26
Noroozi Shane Yes 01-16-26
Rock Heather Yes 01-04-26
Shoemaker Michele Yes 01-20-26
Stewart Rod Yes 12-12-25
Stribling Frank Yes 01-12-26
Zajac Robert (Bob) Yes 12-22-26
ATTACHMENT 6
Item L.1
ATTACHMENT 7
ATTACHMENT 7
Provided to Council under a separate cover.
Applications are available for review at the City
Hall 635. S. Highway 101.
Item L.1
STAFF REPORT
CITY OF SOLANA BEACH
TO: Honorable Mayor and City Councilmembers
FROM: Alyssa Muto, City Manager
MEETING DATE: January 28, 2026
ORIGINATING DEPT: City Clerk Department – Angela Ivey, City Clerk SUBJECT: 2026 Citizen Commission Appointments
STAFF REPORT UPDATE
Item # L.1.
______________________________________________________________________ Attachment 5, Application Worksheet, has been updated with clarifying or corrections to who is re-applying for their existing position. The prior Worksheet appeared to show reapplication of prior choices, but those have been removed to provide more clarity. Please use this Worksheet in your review and appointments at the meeting.
Item L.1
Stan Bergum (Council) 2027 Deborah Sweet (Council) 2027 Bob Moldenhauer (Heebner) 2027 G i
Mike Nagamine(Council) 2027 Matt Linnik (Council) 2027 Halle Shilling (Council) 2027 Rich Villasenor (Edson) 2027 Christopher Maulik (Heebner) 2027 Cindi Gilliland (Council) 2027 Debbie Day (Council) 2027 Jeanie Grischy (Council) Matthew Cohen (Becker) 2027 Jeff Lyle (Edson) 2027 Ken Flagg - In Lieu of
Councilmember (Council) 2027 Carol Jensen (Council) 2027 Vicki Cypherd (Council) 2027 Frank Stribling (Council) 2026re-applying Kenneth Zito (Zito) 2027 Heidi Dewar (Council) 2026
re-applying
H. Shane Noroozi (Council) 2026
re-applying
Mariel Mayer(Council) 2026
re-applying
Pat Coad (Council) 2026
re-applying
Scott Hermes (Becker) 2026
re-applying
Michelle Buchanan (Council) 2026
re-applying Jenny Byars (Council) 2027 David Zito 2027(Primary) Michael Budelsky (Council) 2026
re-applying
Shawn Hethcock (Council) 2026
re-applying
Robert (Bob) Zajac (MacDonald) 2026
re-applying
Larry Marmon (MacDonald) 2026
re-applying
Lane Sharman (Council) 2026
NOT re-applying
Heather Rock (Council) 2026
re-applying
Kristi Becker 2027
(non-voting)
Rod Stewart (Council) 2026
re-applying
Mark Mennie(Council) 2026
re-applying
Linda Najjar (Zito) 2026
re-applying
P
r
o
p
Budget & Finance Climate Action Parks & Recreation Public Arts View Assessment C
O
N
F
:
\
C
Last name First Name
D
a
t
1 12-12-25 Marmon Larry Only Choice
Re-applying for Existing Position
2 01-13-26 Hermes Scott Only Choice
Re-applying for Existing Position
3 01-12-26 Evans Al Only Choice
4 01-02-26 Buchanan Michelle Only Choice
Re-applying for Existing Position
5 01-04-26 Rock Heather Only Choice
Only Choice
Re-applying for Existing Position
will serve Profess. or Resident
6 01-20-26 Dewar Heidi Only Choice
Re-applying for Existing Position
8 01-20-26 Shoemaker Michele Only Choice
7 01-20-26 Cleary Matthew Only Choice
9 01-12-26 Budelsky Michael Only Choice
Re-applying for Existing Position
10 12-12-25 Stewart Rod 1st Choice
Re-applying for Existing Position 2nd Choice
11 01-20-26 Coolbaugh Gabrielle Only Choice
12 12-27-25 Hethcock Shawn Only Choice
Re-applying for Existing Position
13 01-07-26 Mennie Mark Only Choice
Re-applying for Existing Position
14 01-07-26 Mayer Mariel Only Choice
Re-applying for Existing Position
15 01-08-26 Klein Sharon Only Choice
16 01-08-26 Najjar Linda Only Choice
Re-applying for Existing Position
17 01-05-26 Coad Pat Only Choice
Re-applying for Existing Position
18 01-12-26 Stribling Frank Only Choice
Re-applying for Existing Position
19 12-22-25 Zajac Bob Only Choice
Re-applying for Existing Position
20 01-16-26 Noroozi Shane 2nd Choice 3rd Choice
Re-applying for Existing Position 1st Choice
4 Vacancies
Appointments by:
1-MacDonald ♦ 1-Zito ♦
2- Council
2 Vacancies
Appointments by:
1-Becker ♦ 1- MacDonald ♦
C
o
n
f
i
V
A
C
&
B
u
d
g
e
t
F
i
3 Vacancies
Appointments by:
Council-at-large
Date Rcvd
Members & Expiration Year
APPLICANTS
in order by 1st choices
City of Solana Beach Citizen
Commissions 2026
Appointments
Applicants are listed below in
order by their 1st choice.
Applications DUE January 20, 2026
3 Vacancies
Residents
Appointments by:
Council-at-large
0 Vacancies
Council OR
Other Member Type.
As determined by
Council
1 Vacancies
Professionals
Appointments by:
Council-at-large
3 Vacancies
Appointments by:
Council-at-large
Attachment 5
Item L.1
COUNCIL ACTION:
_______________________________________________________________________ AGENDA ITEM # L.2.
STAFF REPORT
CITY OF SOLANA BEACH
TO: Honorable Mayor and City Councilmembers
FROM: Alyssa Muto, City Manager
MEETING DATE: January 28, 2026
ORIGINATING DEPT: Finance Department – Rachel Jacobs, Finance Director SUBJECT: Fiscal Year 2025 Annual Comprehensive Financial Report (ACFR)
BACKGROUND:
The City’s financial policies specify that each year the City’s financial statements are to be audited by a firm of independent Certified Public Accountants (CPA’s) and that the auditor’s opinion is to be included in the financial statements as is required by Generally Accepted Accounting Principles (GAAP). An independent audit is essential to demonstrate the accountability of government officials’ use of public resources and provides a basis for user acceptance of the audited financial statements.
This item is before the City Council (Council) to accept and file the Fiscal Year (FY) 2025 Annual Comprehensive Financial Report (ACFR) (Attachment 1) and receive a presentation by the City’s Independent Auditors, Davis Farr, LLP, on the City’s financial condition as of June 30, 2025.
DISCUSSION:
Staff is presenting the FY 2025 ACFR for Council’s review. The ACFR is a detailed report that goes beyond the requirements of GAAP and beyond any legal reporting requirements.
The ACFR covers all funds of the government and all the financial transactions during the applicable fiscal year. It is considered a general-purpose report as its contents are intended to meet the needs of a range of user groups.
Highlights of the FY 2025 ACFR include the following:
The City’s net position increased to $131,833,130, or by $9,596,454, due to FY 2025 operations.
Governmental net position equaled $80,814,773.
The total revenues for all governmental activities were $41,171,098. The total expenditures for all governmental activities were $32,818,554. The General Fund reported an excess of revenues over expenditures and other Item L.2
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FY 2025 ACFR
financing sources and uses by $5,895,417.
The General Fund’s actual resources exceeded the final revenue budget by $2,306,299 while actual expenditures were $2,805,398 less than the final budget.
GASB Statements Regarding Pension Liabilities
Governmental Accounting Standards Board (GASB) requires government entities to report net pension liabilities in their Statement of Net Position. The standard, GASB Statement No. 68 (GASB 68), Accounting and Financial Reporting for Pensions, was issued by GASB on June 12, 2012.
Under GASB 68, governmental entities need to address net pension liability in their financial statements. Net pension liability refers to the difference between the total pension liability, defined as the present value of the projected benefit payments to employees based on past service, and the pension’s assets, generally considered to be the investments set aside to pay retirees and current employees. Since the City takes part in a cost-sharing plan, it needs to recognize its proportionate share of the collective net pension liability and expense for the plan.
GASB 68 also requires governments to immediately recognize annual service costs and interest on the pension liability, as well as the effects of any changes in benefit terms.
Since pension expenses are now viewed over the service period of the plan member, governments also have to deal with how changes in economic and demographic assumptions used to project benefits affect the pension, as well as with differences between assumptions and actual experiences. Governmental entities also need to recognize, over a five-year period, the effects of differences between expected and actual investment returns.
As of June 30, 2025, the City of Solana Beach reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows, with a comparison to the net pension liability of each Plan:
Proportionate Share of Net Pension Liability
FY 2025 FY 2024 Difference
Miscellaneous $ 7,817,417 $ 7,863,579 $ (46,162)
Safety 12,973,855 13,127,102 (153,247)
$ 20,791,272 $ 20,990,681 $ (199,409)
The City of Solana Beach’s net pension liability of each of the Plans is measured as of June 30, 2024, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s net position as a percentage of the total pension liability (funded percentage) for both Plans as of June 30, 2025, is 83.4%.
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More detailed information regarding the implementation of GASB 68 can be found in the following sections of the ACFR:
1. Note 5, City Employees Retirement Plan – Pension Plans, beginning on page 63
2. Schedule of Proportionate Share of the Net Pension Liability on pages 88 & 90
3. Schedule of Plan Contributions on pages 89 & 91
GASB Statements Regarding Other Post-Employment Benefits (OPEB) GASB Statement No. 75 (GASB 75), Accounting and Financial Reporting for PostEmployment Benefits other than Pensions is the “employer” reporting of the plan in its financial statements. The GASB 75 reports a liability in the ACFR on the statement of net position for the OPEB liability which is similar to how net pension liability is reported for pensions.
The primary objective of this statement was to improve accounting and financial reporting by state and local governments for post-employment benefits other than pensions (OPEB).
It also improved information provided by state and local governmental employers about financial support for OPEB that is provided by other entities.
The City provides OPEB in the form of a modest retiree healthcare benefit. The City’s net OPEB liability was measured as of June 30, 2025, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2024, that was rolled forward to determine the June 30, 2025, total OPEB liability, based on the actuarial methods and assumptions as explained in Note 6 beginning on page 68 in the ACFR.
The total OPEB liability as of June 30, 2025, increased by $50,769 to $3,464,527.
Combined with an increase of $514,248 in the Fiduciary Net Position (FNP), or monies held by the PARS Trust, the City’s Net OPEB Liability (NOL) realized a total decrease of $463,479 from FY 2024 to FY 2025 as shown in the following table:
Net OPEB Liability
6/30/2025 6/30/2024 Difference
Total OPEB Liability (TOL) $ 3,464,524 $ 3,413,755 $ 50,769 Fiduciary Net Position (FNP) 2,223,999 1,709,751 514,248 Net OPEB Liability (NOL) $ 1,240,525 $ 1,704,004 $ (463,479) Funded Status (FNP/TOL) 64.2% 50.1%
Discount Rate 5.50% 5.50%
More detailed information regarding the implementation of GASB 75 can be found in the following sections of the ACFR:
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1. Note 6, Other Post-Employment Benefits, beginning on page 68
2. Schedule of Changes in Net OPEB Liability and Related Ratios on page 92
3. Schedule of Plan Contributions on page 94
Fund Balance
The GASB Statement No. 54 (GASB 54), Fund Balance and Governmental Fund Type Definitions, established Fund Balance classifications based largely upon the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The Governmental Fund statements conform with this classification and information regarding Fund Balances can be found in Note 11 on page 78 of the ACFR.
The loan balance from the Sanitation Fund is reported as a liability on the General Fund’s balance sheet as an “Advances from Other Funds”. The loan payable to the Sanitation fund was made at an annual interest rate of 2.78% for seven years with annual payments equal to $445,699. As payments are made each year to the Sanitation Fund, the loan amount will decrease and the Fund Balance amount in the Real Property Acquisition Fund will increase and eventually be zero when the loan is fully paid in FY 2026.
Fund Activity
General Fund
The General Fund had the following activity for FY 2025:
The net change in the General Fund’s fund balance from FY 2024 to FY 2025 is $5,895,417 using the GASB 54 fund balance classifications as reflected in the following table:
06/30/25 06/30/24 Difference
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Non-Spendable $ 1,808,044 $ 41,024 $ 1,767,020
Restricted 8,473,683 6,764,356 1,709,327
Committed 1,145,577 1,292,880 (147,303)
Assigned 9,721,212 6,786,980 2,934,232
Subtotal 21,148,516 14,885,240 6,263,276
Unassigned
General Fund 13,355,486 14,145,260 (789,774)
Real Property Acquis (258,801) (680,716) 421,915
Total Unassigned 13,096,685 13,464,544 (367,859)
Total General Fund $ 34,245,201 $ 28,349,784 $ 5,895,417 The General Fund’s revenue, expenditures, and fund balance as reported in the ACFR includes the City’s internal service funds. The net change in the General Fund’s fund balance, including the internal service fund designations, is reflected in the following table:
Other Governmental Funds
The Special Revenue Funds, Capital Improvement Funds, and Debt Service Funds had the following combined activity for FY 2025:
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The Proprietary Funds, which includes Sanitation, had the following activity for FY 2025 as shown in the following table:
The Management’s Discussion and Analysis Section of the ACFR provides a more in-depth view of the City’s current financial health. The Statement of Auditing Standards (SAS) No. 115, Communication of Internal Control Related Matters Identified in an Audit (Attachment 2), received from the City’s auditor states that there were no material instances of noncompliance, no material weaknesses in internal controls, and no reportable conditions.
In SAS No. 114, the Auditor’s Communication with Those Charged with Governance (Attachment 3) regarding their responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards, the auditors reported on the implementation of various GASBs, among other findings.
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FY 2025 ACFR
The City’s audit was conducted in conformity with Generally Accepted Auditing Standards (GAAS). These are the standards that a CPA must follow when auditing financial statements. In an independent audit, the CPA expresses an opinion as to whether the financial statements present fairly the financial position and results of operations for the year ended. The Fiscal Year 2025 audit report contains this unmodified opinion.
The City was proud to accept the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association for the ACFR for the fiscal year ended June 30, 2024. Staff is confident that this report will again earn this distinction.
CEQA COMPLIANCE STATEMENT:
Not a project as defined by CEQA.
FISCAL IMPACT: N/A
WORK PLAN: N/A
OPTIONS:
• Approve Staff recommendation.
• Provide alternative direction.
CITY STAFF RECOMMENDATION:
Staff recommends that the City Council:
1. Accept and file the City of Solana Beach Annual Comprehensive Financial Report (ACFR) for the fiscal year July 1, 2024 – June 30, 2025.
2. Accept and file The Auditor’s Communication with Those Charged with Governance letter.
_________________________
Ayssa Muto, City Manager
Attachments:
1. ACFR Fiscal Year Ended June 30, 2025
2. Communication of Internal Control Related Matters Identified in an Audit
3. The Auditor’s Communication with Those Charged with Governance letter Item L.2
, CA
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE YEAR ENDED
JUNE 30, 2025
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CITY OF SOLANA BEACH, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025
PREPARED BY THE FINANCE DEPARTMENT
OF THE CITY OF SOLANA BEACH
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CITY OF SOLANA BEACH, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal................................................................................................................................ i GFOA Certificate of Achievement for Excellence in Financial Reporting...............................................xi City of Solana Beach List of Officials and Advisory Bodies ..................................................................xii Organizational Chart.............................................................................................................................xiii
FINANCIAL SECTION
Independent Auditor’s Report................................................................................................................. 1 Management’s Discussion and Analysis ................................................................................................ 5 Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position .............................................................................................................. 23 Statement of Activities.................................................................................................................... 24 Fund Financial Statements:
Balance Sheet – Governmental Funds....................................................................................... 30 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ......................................................................................................................... 31 Statement of Revenues, Expenditures, and Changes in Fund Balances................................... 32 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities................................... 33 Statement of Net Position – Proprietary Funds .......................................................................... 33 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds............ 37 Statement of Cash Flows – Proprietary Funds........................................................................... 38 Statement of Fiduciary Net Position – Fiduciary Funds.............................................................. 40 Statement of Changes in Fiduciary Net Position – Fiduciary Funds .......................................... 41 Notes to the Basic Financial Statements .......................................................................................... 45
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule:
General Fund .................................................................................................................................... 87 Miscellaneous Employee Pension Plan:
Schedule of Proportionate Share of the Net Pension Liability......................................................... 88 Schedule of Employer’s Contributions............................................................................................. 89 Safety Employees’ Pension Plan:
Schedule of Proportionate Share of the Net Pension Liability......................................................... 90 Schedule of Employer’s Contributions............................................................................................. 91 Retiree Healthcare Plan:
Schedule of Changes in Net OPEB Liability and Related Ratios.................................................... 92 Schedule of Employer’s Contributions............................................................................................. 94 Notes to the Required Supplementary Information .............................................................................. 95 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025
TABLE OF CONTENTS
Page
SUPPLEMENTARY INFORMATION
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet – Nonmajor Governmental Funds ........................................................... 102 Combining Statement of Revenues, Expenditures and
Changes in Fund Balance – Nonmajor Governmental Funds ...................................................... 108 Budgetary Comparison Schedules:
Special Revenue Funds:
Gas Tax .................................................................................................................................... 114 TRANSNET............................................................................................................................... 115 Municipal Improvements District............................................................................................... 116 Lighting District ........................................................................................................................ 117 COPS........................................................................................................................................ 118 Public Safety ............................................................................................................................. 119 Fire Mitigation ........................................................................................................................... 120 CDBG........................................................................................................................................ 121 Coastal Area Business/Visitor Assistance and Enhancement ................................................. 122 Miscellaneous Grants ............................................................................................................... 123 Developer Pass-Thru................................................................................................................ 124 Housing..................................................................................................................................... 125 Camp Programs........................................................................................................................ 126 SB1 Streets & Roads................................................................................................................ 127 Capital Projects Funds
City CIP..................................................................................................................................... 128 Sand Replenishment ................................................................................................................ 129 Debt Service Fund:
City Debt Service ...................................................................................................................... 130 Combining Statement of Fiduciary Net Position – All Custodial Funds.............................................. 132 Combining Statement of Changes in Fiduciary Net Position – All Custodial Funds ......................... 133
STATISTICAL SECTION
Net Position by Component................................................................................................................ 136 Changes in Net Position ..................................................................................................................... 137 Fund Balances – Governmental Funds.............................................................................................. 138 Changes in Fund Balances – Governmental Funds........................................................................... 139 Assessed Value and Estimated Actual Value of Taxable Property.................................................... 140 Direct and Overlapping Property Tax Rates....................................................................................... 141 Principal Property Taxpayers ............................................................................................................. 142 Property Tax Levies and Collections.................................................................................................. 143 Ratios of Outstanding Debt by Type .................................................................................................. 144 Direct and Overlapping Governmental Activities Debt ....................................................................... 145 Legal Debt Margin Information ........................................................................................................... 146 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025
TABLE OF CONTENTS
STATISTICAL SECTION (continued)
Pledged Revenue Coverage .............................................................................................................. 147 Demographic and Economic Statistics............................................................................................... 148 25 Major Employers – San Diego County .......................................................................................... 149 Full-Time-Equivalent City Employees by Function/Program.............................................................. 150 Operating Indicators by Function/Program......................................................................................... 151 Capital Assets Statistics by Function/Program................................................................................... 152 Item L.2
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CITY OF SOLANA BEACH FAX (858) 792-6513 / (858) 755-1782 635 SOUTH HIGHWAY 101 • SOLANA BEACH • CALIFORNIA 92075-2215 • (858) 720-2400 December 12, 2025
To the Honorable Mayor, Members of the City Council, and Citizens of Solana Beach:
It is with great pleasure that we present to you the City of Solana Beach (City) Annual Comprehensive Financial Report (ACFR) for the Fiscal Year ended June 30, 2025.
This year’s report was prepared by the City’s Finance Department in conformity with Generally Accepted Accounting Principles (GAAP) and has been audited in accordance with Generally Accepted Auditing Standards (GAAS) by a firm of licensed Certified Public Accountants. The report consists of management representations concerning the finances of the City. Consequently, responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed information is accurate in all material respects and is reported in a manner designed to present fairly the financial position of the City. All disclosures necessary to enable an understanding of the City’s financial activities have been included.
The ACFR includes the financial activity for all funds of the City. The City provides a wide range of services including planning; public works; engineering; maintenance of streets, parks, and public facilities; community services and recreation; fire and marine safety; sanitation; and general administrative activities. Contracted services include, but are not limited to, building services through a third-party consultant, law enforcement support from the San Diego County Sheriff’s Office and animal control services through the San Diego Humane Society.
Internal Controls
The management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft, or misuse, and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met.
The concept of reasonable assurance recognizes that (1) the costs 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.
As a recipient of State, County, and Federal financial resources, the City is also responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. The internal control structure is subject to periodic evaluation by the management of the City.
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Annual Audit
Davis Farr LLP, appointed by the City Council, has audited the City’s financial statements.
The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2025, are free of material misstatements. As part of the City’s annual audit, reviews are made to determine the adequacy of the internal control structure as well as to determine that the City has complied with applicable laws and regulations.
The results of the City’s annual audit for the fiscal year ended June 30, 2025, provided no instance of material weakness in the internal control structure and no violations of applicable laws and regulations. The independent auditor concluded there was a reasonable basis for rendering an unmodified opinion and the City’s financial statements are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.
Management’s Discussion and Analysis (MDA)
This letter of transmittal is designed to complement the Management’s Discussion and Analysis (MDA) and should be read in conjunction with it. The MDA provides “financial highlights” and interprets financial reports by analyzing trends and by explaining changes, fluctuations, and variances in the financial data. In addition, the MDA is intended to disclose any known significant events or decisions that affect the financial condition of the City. The City’s MDA can be found immediately following the report of the independent auditors.
Government Profile
The City was incorporated on July 1, 1986, under the general laws of the State of California and is home to a population of 12,841 residents per the Bureau of Labor and Statistics.
Included within the City’s financial statements is the financial information of the Solana Beach Public Facilities Corporation. The City is considered the primary government, and the Public Facilities Corporation is a component unit. Additionally, since the governing boards of the City and the component unit are the same, the financial statements of the City and the component unit are blended.
The Solana Beach Public Facilities Corporation was incorporated on July 25, 1990, as a nonprofit public benefit corporation duly organized and existing under the Nonprofit Public Benefit Corporation Law. Its purpose is to benefit the City by providing financing for the planning, development, acquisition, construction, improvement, extension, repair, and renovation of public works projects, public facilities, furnishings, and equipment for use by the City.
The City is a coastal community encompassing approximately 3.4 square miles and is located twenty-one miles north of the City of San Diego’s downtown district. It is bordered to the North and South by the cities of Encinitas and Del Mar, respectively; to the East by the County of San Diego; to the southeast by the City of San Diego; and by the Pacific Ocean to the West.
The City is a general law city that operates under the Council-Manager form of government.
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The City Council (Council) is comprised of four Council members elected within separate Council Districts to staggered four-year terms of office. The Mayor is elected at-large to a four-year term, and the Deputy Mayor is selected annually by the Council from among its four Councilmembers to serve a one-year term. The Council acts as the legislative and policymaking body of the City, enacting all laws and directing such actions as required providing for the general welfare of the community.
The City Manager, appointed by the Council, serves as the Chief Executive Officer and is responsible to the Council for the proper administration of all City affairs and for the implementation of all policies established by the Council. The City Attorney is the only other position appointed by the Council. All other department heads and employees are appointed by the City Manager.
Commissions play an important role in the governmental structure of Solana Beach. They provide many opportunities for citizens to participate in the affairs of the City. These Advisory Commissions assist in the performance of studies and the issuance of recommendations on various matters of concern to the Council.
The Advisory Commissions are the following:
Budget & Finance Commission
Climate & Resiliency Commission
Parks & Recreation Commission
Public Arts Commission
View Assessment Commission
Budgetary Process and Controls
The process of adopting a budget for the City is generally a six-month process, beginning in late December and ending in June when the Council adopts the budget and appropriates funds necessary for the City to provide services to its residents.
The process is all-inclusive as department directors work with the City Manager and representatives of the Finance Department to discuss departmental requests relative to the City’s available resources.
The City’s overall objectives and goals, along with the economic outlook, serve as a platform for the proposed budget that is distributed to the Council, and the Budget and Finance Commission, for preliminary review and analysis in preparation of public workshops and hearings. The public workshops and hearings are held to facilitate discussions of items contained within the proposed budget and to allow the citizenry to participate in the budget process.
In June 2025, the Council approved a two-year budget for Fiscal Years (FY) 2026 and 2027.
The budget is amended from time to time during this two-year budget cycle, with budget adjustments brought before the Council for review and approval. The final General Fund Budget as amended is presented in the Required Supplementary Information section of this report.
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In addition to internal controls, the City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Council. Activities of the General, Special Revenue, Debt Service, and Capital Projects Funds are included in the annual appropriated budget.
The budget is arranged by fund, function, and department and is presented to the Council by the City Manager and Finance Director. The budget is then adopted annually by the Council prior to the beginning of the financial year and serves as the foundation for the City’s financial planning and control. Department directors may make transfers of appropriations within their own budget units’ divisions with City Manager approval. As previously noted, the City budget is reviewed and is periodically adjusted at the middle of the fiscal year and at the end of the fiscal year. These adjustments are approved by the Council.
The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. The adopted budget for Fiscal Year 2026 & 2027 was prepared in accordance with Generally Accepted Accounting Principles.
As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management.
Economic Condition and Outlook
Information presented in the City’s financial statements is best understood within the context of our broader economic conditions. Based on the most recent estimates from the Bureau of Economic Analysis, Real Gross Domestic Product (GDP) increased at an annual rate of 3.0% in the second quarter of 2025.
In July 2025, the U.S. Bureau of Labor Statistics (BLS) reported the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2% on a seasonally adjusted basis, after rising
0.3% in June.
The index for all items rose 2.7% over the past 12 months, ending July 2025, after rising 2.7% over the 12 months ending June.
Local Economy
Solana Beach is home to citizens who enjoy the benefits of a coastal community that is within close proximity to the City of San Diego. The local beaches are a big attraction to both residents and non-residents. The City is comprised mainly of single-family homes and condominiums with retail, office, and light industrial uses and service entities providing a tax base for the City.
As a somewhat suburban community, Solana Beach's economic base is linked primarily to the economy of the greater San Diego region. In particular, the greater San Diego economic base sustains the City’s residential and industrial facilities.
The local economy is primarily based on small to medium sized retail establishments and Item L.2
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specialty stores selling general merchandise, furniture, arts and crafts, clothing, food, and gasoline. Local economic generators such as vacation tourism support a significant portion of the City’s commercial base.
The United States Bureau of Labor Statistics (BLS) reported the San Diego County unemployment rate was 5.2% in July 2025. The region’s unemployment rate remained lower than California’s unemployment rate of 6.1% in July 2025.
Solana Beach housing prices continue to increase. According to the San Diego Association of Realtors, the median single family home price in Solana Beach in August 2025 was $3.7 Million, compared to $2.4 Million the year prior. The San Diego region’s median home price was $1,075,000 in June 2025, an increase of 5.3% as compared to the same month in 2024.
In June 2024, Governor Gavin Newsom signed a $321.1 billion budget for the 2026 fiscal year, an increase of 8.6% from the FY 2025 budget. The state budget includes a $228.4 Billion General Fund, a 7.9% increase, as compared to the adopted FY 2025 budget appropriations. The largest increases were in Health & Human Services ($6.7 Billion) and Higher Education Expenditures ($500 Million).
Long-Term Financial Planning
Solana Beach’s conservative fiscal policies have helped the City build and maintain a healthy reserve and management will continue to keep costs in line with available resources.
For FY 2026, budgeted property taxes are expected to increase as compared to actual amounts received for the prior fiscal year. Sales tax is also projected to realize an increase as the local economy continues to rebound from the pandemic.
It is the City’s continued goal not to rely on General Fund reserves to operate the City annually.
Relevant Financial Policies
The City of Solana Beach has financial policies that help guide it during the preparation of the annual budget. One such policy is the 20% reserve goal. This policy, as in the adoption of the FYs 2026 and 2027 Budgets, is one that has been continuously adhered to by Council.
The Equipment Replacement Reserve Fund is used to provide for the replacement of the City’s existing equipment, vehicles, computers, and furnishings and the City’s financial policy is to annually budget funds for this Reserve. During the FYs 2026 and 2027 budget process, the Council again ensured that funds were appropriated to maintain adequate reserves in the Equipment Replacement Fund. Through the end of FY 2025, the unreserved balance in this fund is $5,255,729.
The City established a Facilities Replacement Fund to ensure that funds are available in the future for the replacement of buildings and improvements. At the end of FY 2025, the unreserved balance in this fund is $1,299,384.
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Cash Management Policies and Practices
Cash resources of the individual funds are combined to form a pool of cash and investments.
Cash temporarily idle during the year was invested primarily with Chandler Asset Management and with the Local Agency Investment Fund (LAIF) consistent with the City’s Investment Policy.
The City’s longstanding Investment Policy was re-adopted by the Council on June 18, 2025, and provides the City more flexibility to invest its excess funds to provide safety to ensure the preservation of capital in the portfolio, provide sufficient liquidity for cash needs, and to realize a market rate of return consistent with the investment program while staying within the requirements of California Government Code Section 53601.
The City’s Investment Policy is designed to maximize the productive use of assets entrusted to its care and to invest and manage those funds wisely and prudently. Criteria for selecting investments and the order of priority are: (1) safety (2) liquidity and (3) yield. The basic premise underlying the City’s Investment Policy is to ensure that money is safe, always available, and earn the highest and best returns.
Investment income includes appreciation/depreciation in the fair value of investments. The total investment gain for all funds for the fiscal year ended June 30, 2025, was $2,704,341 ($2,044,509 investment income received plus $659,832 gain on the fair value), a decrease of $95,562 from the prior fiscal year’s investment gain amount of $2,799,903.
City Work Plan – FY 2026
The Fiscal Year 2026 Work Plan is a guiding document that includes all the Council’s priority projects. This FY 2026 Work Plan focuses on five legislative priority areas as the Council directs Staff on projects and programs: Affordable Housing and Livable Communities, Transportation and Mobility, Environmental Sustainability and Energy, Youth, Senior, and Community Well-Being, and General Governance and Fiscal Responsibility with the knowledge that all areas of priority are important to the overall sustainability of the City.
On April 23, 2025, the Council held a public workshop to discuss the draft Fiscal Year 2025/2026 Work Plan and to accept public comments. At that public workshop, 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, Council meeting, where additional revisions were directed by the Council.
The revised final Fiscal Year 2026 Work Plan was brought back to Council for final consideration and was approved by the Council on June 18, 2025.
This Fiscal Year 2026 Work Plan will be added as a supplement item to our Fiscal Year 2025 Annual Comprehensive Financial Report to highlight the FY 2026 priorities and upcoming projects in greater detail.
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Major Projects and Financial Planning
Fletcher Cove and the Marine Safety Center
The Marine Safety Center (MSC) at
Fletcher Cove is the City’s primary oceansafety and lifeguard operations facility, supporting daily public safety functions,
emergency response, rescues, and beach
activity. The project is located at the top of
Fletcher Cove and includes reconstruction
of the existing building and upgrades to
support year-round operations and public
access.
The project will replace the 1940s facility
with a modern lifeguard station that meets
operational needs, improves emergency
response capability, and integrates with the
surrounding coastal environment. A needs
assessment and feasibility study began in
FY 2015/16 under a Professional Services
Agreement with Stephen Dalton Architects,
which confirmed that nearly all building
components were past their useful life. A
Professional Services Agreement with Domus Studio Architects was approved in 2018 to begin preliminary design. Community outreach occurred in 2019, followed by City Council presentations in November 2019 and October 2020, where Council directed Staff to proceed with an above-ground design option. Additional refined concepts were presented in 2023 and 2024, including review of potential view impacts.
The design team met with California Coastal Commission staff in August 2024, and updated story poles reflecting the January 2024 design were installed in September 2024. In December 2024, the Council approved the Development Review Permit, Site Development Permit, and Conditional Use Permit. Technical studies are currently being prepared for the Coastal Development Permit application, which is anticipated to be submitted to California Coastal Commission in early 2026.
In addition to the Marine Safety Center project, the City is making improvements to the beach access ramp, restrooms, and storm drain infrastructure at Fletcher Cove. These upgrades enhance public access to the beach, address aging facilities, and improve long-term durability and safety in this highly used coastal area. Design and construction advertisement were completed in FY 2024/25, and the construction contract was awarded by the City Council in July 2025. The project is currently under construction and is anticipated to be completed in early 2026.
Existing Marine Safety Center
Marine Safety Center Concept 2024
Item L.2
viii
Pavement Management Program
The City’s paved roadway network includes over 46 miles of streets across arterial, collector, and local classifications. The City’s Pavement Management Program (PMP) evaluates pavement conditions and develops a five-year work plan for each street segment based on condition, traffic use, lifecycle cost, and available budget.
Over the past decade, the roadway network has improved due to increased funding and implementation of a formal PMP. A key component of this evaluation is the Pavement Condition Index (PCI), a nationally standardized rating system (0–100) used to measure pavement condition. In 2021, the City’s PCI was 73.4 (“Very Good”), an improvement from the 2016 PCI of 68 (“Good”). The next full condition assessment is scheduled for Fiscal Year 2026–27, which will update the City’s pavement priorities and deterioration modeling.
Based on the 2021 assessment, a five-year work plan was developed to guide pavement repairs and maintenance. This plan is used annually to select street segments for the City’s Street Maintenance and Repair Program. The program is primarily funded through Gas Tax, SB 1, and TransNet revenues. In addition, the City Council approved the use of Measure S funding for FY 2024 and FY 2025, reflecting a priority identified by Measure S supporters.
The continued investment demonstrates the City’s commitment to maintaining high-quality streets and continuing a proactive pavement management program.
Construction for the FY 2023/24 Roadway Maintenance and Repair Project ($1.1 million) began in July 2024, with the Notice of Completion approved by City Council in July 2025.
Projects for FY 2024/25 and FY 2025/26 were approved by City Council in March 2025, and the combined construction contract ($2.1 million) was awarded in July 2025. Construction is anticipated to be completed in Spring 2026.
Sewer & Storm Drain Management Program
The City maintains approximately 53 miles of sewer pipelines and 15 miles of storm drain infrastructure. The wastewater collection system includes sewer mains, low-flow diverters at Fletcher Cove and Seascape Sur, the San Elijo Lagoon siphon structure, and sewer laterals at City facilities.
Ongoing preventative maintenance and targeted rehabilitation reduce emergency response needs, extend the life of underground assets, and support reliable operation of the City’s wastewater and storm drain systems while protecting public health, water quality, and roadway infrastructure. In addition to routine cleaning, the City’s service agreements include video inspection and on-call response, allowing Staff to identify structural deficiencies, prioritize segments for cleaning or repair, and guide replacement or trenchless lining projects.
The City also contracts for pipe replacement and lining to extend pipeline service life, and this targeted approach reduces the risk of sewer spills and storm drain failures, limiting damage to City streets and private property.
City Council approved the construction contract for the FY 2024/25 Sewer and Storm Drain Rehabilitation Project ($1.1) in March 2025, and construction was completed in October 2025.
In June 2025 Council approved the FY 2024/25 Sewer and Storm Drain Lining Project ($0.6 Item L.2
ix
million) and the project is anticipated to be completed in Spring 2026.
Lomas Santa Fe Corridor Project
Lomas Santa Fe Drive is a key east–west corridor in the City, connecting neighborhoods to schools, parks, the train station, and the Cedros commercial district. The Lomas Santa Fe Corridor Project extends from Cedros Avenue on the east side of Highway 101 to Highland Drive at the City’s eastern boundary. The project is comprised of an east and west phase and is designed to improve connectivity, circulation, and access for pedestrians, cyclists, and drivers. The project is identified in the City’s Comprehensive Active Transportation Strategy (CATS) and Safe Routes to School Plan.
The design of the project was completed in November 2021 and was funded primarily through a grant from SANDAG. Design included a multi-use path on the north side of LSF, striping and signal improvements, added parking, landscaping, and other items intended to slow down traffic and increase use of the corridor by pedestrians and bicycles. In 2022, the City coordinated with Congressman Mike Levin’s office to request a grant for construction funding for the Lomas Santa Fe-East Improvement Project. A federal grant was received in May 2023 in the amount of $7.0 million through the National Infrastructure Investment and Jobs Act. It was determined that the grant award would allow for the construction of the project on the east side of Interstate 5, from Santa Helena to Highland Drive. Council has also allocated surplus funds to this project to cover anticipated costs that have escalated since the design process concluded.
Because of federal funding, Caltrans serves as the delegated authority for construction authorization. In August 2025, the City received Caltrans Authorization to Proceed with advertising the project for construction bids. Staff is currently working on securing the necessary permits from agencies such as the Santa Fe Irrigation District (SFID) and Caltrans.
During the past fiscal year, Staff worked with Caltrans to obtain the Authorization to Proceed (E-76). The project is anticipated to be advertised for construction bids in Spring 2026.
In the interim, while funding opportunities continue to be explored for the western portion of Lomas Santa Fe, the City has prioritized repaving and striping of Lomas Santa Fe, west of Interstate 5 to Cedros Avenue, as part of the annual Pavement Management Plan for Fiscal Year 2025-2026.
Item L.2
x
Acknowledgments
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Solana Beach for its ACFR for the fiscal year ended June 30, 2024. This was the twenty-third year in the past twenty-four years that the City has received this award. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement program’s requirements, and we are submitting it to GFOA to determine its eligibility for another certificate.
The preparation of the Annual Comprehensive Financial Report in accordance with the GASB 34 financial reporting model was made possible by the dedicated work of the Finance Department staff. We would also like to thank the Mayor and Council for their continued support in maintaining the highest standards of professionalism in the management of the City’s finances.
Respectfully submitted, Respectfully submitted,
Alyssa Muto Rachel Jacobs
City Manager Finance Director/City Treasurer
Item L.2
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Solana Beach
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
Item L.2
CITY OF SOLANA BEACH
LIST OF OFFICIALS AND ADVISORY BODIES
CITY COUNCIL
LESA HEEBNER
Mayor
KRISTI BECKER
Deputy Mayor
JEWEL EDSON DAVID A. ZITO JILL MACDONALD
Council Member Council Member Council Member
ADVISORY COMMISSIONS
Budget & Finance Commission
Climate Action Commission
Parks & Recreation Commission
Public Arts Commission
View Assessment Commission
CITY ADMINISTRATION
ALYSSA MUTO
City Manager
Dan King, Assistant City Manager
Johanna Canlas, City Attorney
Pouneh Sammak, Human Resources Director
Rachel Jacobs, Finance Director/City Treasurer
Orelia DeBraal, Director of Public Works/City Engineer
Joseph Lim, Director of Community Development
Angela Ivey, City Clerk
Michael Manriquez, Information Technology Director
Item L.2
CITY OF SOLANA BEACH
Organizational Chart
Fiscal Year 2024-2025
General Government
Administration &
Support Services
- City Clerk - Community - Law Enforcement - Engineering - Community - Legal Services Development - Fire - Environmental Services - City Manager's Office - Code & Parking - Animal Control Services - Recreation - Finance Enforcement - Disaster - Street Maintenance
- Support Services - Building Services Preparedness - Traffic Safety - Human Resources - Marine Safety - Street Sweeping
- Information Systems - Junior Lifeguards - Park Maintenance - Risk Management - Shoreline Protection - Public Facilities - Street Lighting
- Sanitation
- Municipal Improvement
Districts
Citizens
City Council
Public Works Community
Services
City Attorney
City Manager
Community
Development Public Safety
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Item L.2
Independent Auditor’s Report
City Council
City of Solana Beach
City of Solana Beach, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Solana Beach (the City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
As described further in Notes 9 and 16 to the financial statements, during the year ended June 30, 2025, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences. As a result, the beginning net position has been restated. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
1 Item L.2
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for one year after the date that the financial statements are issued.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and pension and other post-employment benefit schedules be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. 2 Item L.2
We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Report on Summarized Comparative Information
We have previously audited the City’s 2024 financial statements, and we expressed unmodified audit opinions on those audited financial statements in our report dated December 6, 2024. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2024 is consistent, in all material respects, with the audited financial statements from which it has been derived.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements and budgetary comparison schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and budgetary comparison schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the Annual Comprehensive Financial Report. The other information comprises the introductory section and statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 12, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
3 Item L.2
The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Irvine, California
December 12, 2025
4 Item L.2
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Solana Beach (City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2025 (Fiscal Year (FY) 2025). It should be read in conjunction with the accompanying transmittal letter beginning on page i and the accompanying basic financial statements.
FINANCIAL HIGHLIGHTS
The City’s net position increased to $131,833,130, or by $9,596,454, due to FY 2025 operations.
Governmental net position equaled $80,814,773
The total revenues for all governmental activities were $41,171,098. The total expenditures for all governmental activities were $32,818,554. The General Fund reported an excess of revenues over expenditures and other financing sources and uses by $5,895,417.
The General Fund’s actual resources exceeded the final revenue budget by $2,306,299 while actual expenditures were $2,805,398 less than the final budget.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The three components of the financial statements are:
(1) Government-wide financial statements, which include the Statement of Net Position and the Statement of Activities. These statements provide information about the activities of the City as a whole.
(2) Fund financial statements describe how City services are financed in the short term as well as what resources are available for future spending. Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds. (3) Notes to the financial statements.
Reporting the City as a Whole
The Statement of Net Position and the Statement of Activities (Government-wide) A frequently asked question regarding the City’s financial health is whether the year’s activities contributed positively to the City’s overall financial well-being. The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All the current year’s revenues and expenses are accounted for regardless of when cash is received or paid.
5 Item L.2
These two statements report the City’s net position and changes thereto. Net position, the difference between assets and liabilities, is one way to measure the City’s financial health, or financial position. Over time, increases or decreases in net position are an indicator of whether financial health is improving or deteriorating. However, it is important to consider other nonfinancial factors such as changes in the City’s property tax base or condition of the City’s roads to assess accurately the overall health of the City.
The Statement of Net Position and the Statement of Activities present information about the following:
Governmental activities - All the City’s basic services are considered governmental activities, including general government, community development, public safety, public works, and community services. Property taxes, transient occupancy taxes, sales taxes, and franchise fees finance most of these activities. Proprietary activities/Business type activities - The City charges a fee to customers to cover all or most of the cost of the services provided. The City’s Sanitation system and Solana Energy Alliance, which provides clean energy services to the public, are reported in this category.
Component units - The City’s governmental activities include the blending of the City of Solana Beach Public Facilities Corporation, a separate legal entity. Although legally separate, this “component unit” is important because the City is financially accountable for the corporation. A separate component unit financial statement was not issued for the Solana Beach Public Facilities Corporation since it has had no transactions, nor any assets, liabilities, or equity over the past three fiscal years.
Reporting the City’s Most Significant Funds
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, management establishes many other funds that aid in the administration of resources for particular purposes or to meet legal responsibilities associated with the usage of certain taxes, grants, and other money. The City’s two kinds of funds, governmental and proprietary, use different accounting approaches:
Governmental funds - Most of the City’s basic services are reported in governmental funds. Governmental funds focus on how resources flow in and out with the balances remaining at year-end that are available for spending. These funds are reported using an accounting method called modified accrual, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information shows whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. We describe the relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds through the Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements. 6 Item L.2
Proprietary funds - When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities.
The City as Trustee
Reporting the City’s Fiduciary Responsibilities
The City is the trustee, or fiduciary, for certain amounts held on behalf of developers, property owners, and others. These fiduciary activities are reported in separate Statements of Fiduciary Net Position and Changes in Assets and Liabilities. The City is responsible for ensuring that the assets are used for their intended purposes. Therefore, fiduciary activities are excluded from the City’s other financial statements because the assets cannot be used to finance operations.
After the date of the dissolution of the Solana Beach Redevelopment Agency (RDA) on February 1, 2012, the assets and liabilities of the former redevelopment agency were transferred to the Successor Agency to the former Solana Beach RDA (Successor Agency) and are reported in a fiduciary fund (private-purpose trust fund).
THE CITY AS A WHOLE
Our analysis focuses on the net position (Table 1) and changes in net position (Table 2) of the City’s governmental and business activities.
2025 2024 2025 2024 2025 2024
Assets:
$ 66,630,291 $ 56,994,219 $ 51,978,036 $ 50,791,169 $ 118,608,327 $ 107,785,388 Capital assets, net 43,084,610 43,138,419 16,224,335 16,740,055 59,308,945 59,878,474 Total Assets 109,714,901 100,132,638 68,202,371 67,531,224 177,917,272 167,663,862 Deferred Outflows 5,663,236 7,501,590 730,006 934,413 6,393,242 8,436,003 Liabilities:
26,052,834 26,423,395 16,756,684 17,497,020 42,809,518 43,920,415 Other liabilities 7,901,009 7,537,687 971,229 1,112,464 8,872,238 8,650,151 Total Liabilities 33,953,843 33,961,082 17,727,913 18,609,484 51,681,756 52,570,566 Deferred Inflows 609,521 1,024,381 186,107 268,242 795,628 1,292,623 Net Position:
37,417,426 37,408,264 11,378,234 11,538,399 48,795,660 48,946,663 Restricted 32,256,632 27,017,802 - - 32,256,632 27,017,802 Unrestricted 11,140,715 8,222,699 39,640,123 38,049,512 50,780,838 46,272,211 Total Net Position $ 80,814,773 $ 72,648,765 $ 51,018,357 $ 49,587,911 $ 131,833,130 $ 122,236,676 Net investment in
capital assets
Table 1
City of Solana Beach Net Position
Governmental
Activities
Business Type
Activities Total
Current and
other assets
Long-term debt
outstanding
7 Item L.2
The City’s combined net position for the fiscal year ended June 30, 2025, of $131,833,130. The City’s net position for governmental activities increased from $72,648,765 to $80,814,773. The following is an explanation of the governmental activity changes between fiscal years as shown in Table 1:
Current and other assets increased $9,636,072 or 16.9% primarily due to increased cash and investments.
Capital Assets net of depreciation decreased $53,809 or 0.1% mainly due to current year depreciation on existing assets. More information is provided in Table 5.
Changes related to Business activities are as follows:
Current and other assets increased $1,186,867 or 2.3% primarily due to increased cash and investments.
Capital Assets, net of depreciation decreased $515,720 or 3.1% primarily due to current year depreciation on existing assets. More information is provided in Table 5.
Governmental Activities
The cost of all Governmental activities in FY 2025 was $32,818,554 as shown on Tables 2 and
2.1. Of this cost, $4,588,451 was paid for by those who directly benefited from the programs; $2,119,633 was subsidized by grants received from other governmental organizations for both capital and operating activities; and $26,110,470 was financed through general City revenues. 8 Item L.2
Items of significance within Table 2 are:
Revenues:
Charges for Services increased by 6% or $585,255 over the prior year fiscal year due to increased permits, plan checks, inspections and associated fees. Property Tax increased by 5.1% or $629,509 over the prior fiscal year due to increased assessed values.
Use of Money and Property increased by 57.9% or $1,735,474 over the prior fiscal year due to Interest Income.
2024 2024 2024
Revenues:
Program revenues:
Charges for services $ 4,588,451 $ 3,992,269 $ 5,726,131 $ 5,737,058 $ 10,314,582 $ 9,729,327 Operating grants
and contributions 2,108,508 2,115,123 - - 2,108,508 2,115,123 Capital grants
and contributions 11,125 167,072 - - 11,125 167,072
General revenues:
Property tax 12,982,043 12,352,534 - - 12,982,043 12,352,534 Sales & Use Tax 9,347,509 9,470,357 - - 9,347,509 9,470,357 Transient Tax 2,896,492 2,883,709 - - 2,896,492 2,883,709 Franchise Tax 814,434 857,126 - - 814,434 857,126
Motor VLF - unrestricted 2,320,937 2,194,459 - - 2,320,937 2,194,459 Use of Money and Propert y 4,129,929 2,435,453 601,863 560,865 4,731,792 2,996,318 Other 1,971,670 1,744,556 398,066 134,739 2,369,736 1,879,295 Total revenues 41,171,098 38,212,658 6,726,060 6,432,662 47,897,158 44,645,320 Expenses:
General government 8,019,100 5,858,330 - - 8,019,100 5,858,330 Public safety 14,418,616 13,129,413 - - 14,418,616 13,129,413 Public works 6,906,891 5,642,968 - - 6,906,891 5,642,968 Community Development 2,070,234 1,518,891 - - 2,070,234 1,518,891 Community Services 1,047,421 975,860 - - 1,047,421 975,860 Interest 356,292 369,215 - - 356,292 369,215
Sanitation - - 5,287,758 7,886,664 5,287,758 7,886,664
Solana Energy - - 579 1,840 579 1,840
Total expenses 32,818,554 27,494,677 5,288,337 7,888,504 38,106,891 35,383,181 Increase/(decrease)
in net position 8,352,544 10,717,981 1,437,723 (1,455,842) 9,790,267 9,262,139 72,648,765 61,930,784 49,587,911 51,043,753 122,236,676 112,974,537 (186,536) - (7,277) - (193,813) -
72,462,229 61,930,784 49,580,634 51,043,753 122,042,863 112,974,537 Net position - June 30 $ 80,814,773 $ 72,648,765 $ 51,018,357 $ 49,587,911 $ 131,833,130 $ 122,236,676 Net position - July 1,
as restated
Implementation of
GASB 101 (Note 16)
2025 2025 2025
Net position - July 1,
as previously report
Table 2
City of Solana Beach Changes in Net Position
Governmental Business Type
Total
Activities Activities
9 Item L.2
Expenses:
General Government expenses increased in FY 2025 by 36.9% or $2,160,770 from the prior fiscal year primarily due to changes in the City’s Pension and Other Post Employment Benefits (OPEB) liabilities.
Public Safety expenses increased by 9.8% or $1,289,203 due to increased administrative costs, OPEB liabilities, CalPERS Unfunded Actuarial Liability payment, equipment maintenance costs, and contractual increases.
Sanitation expenses decreased by 33% or $2,598,906 due to reduced administrative costs, OPEB & Pension liabilities, and less Construction in Progress expenditures in FY25.
Fiscal Year 2025
Governmental Activities
(Graphic representation of Table 2 in percentages)
Net Cost of Governmental Activities
The City’s programs include General Government, Public Safety, Public Works, Community Development, and Community Services. Each programs’ net cost (total cost less revenues generated by the activities) is presented in Table 2.1. The net cost shows the extent to which the City’s general taxes support each of the City’s programs. 10 Item L.2
Total resources available during the year to finance governmental operations were $113,633,327 consisting of a net position on July 1, 2024, of $72,462,229, program revenues of $6,708,084, and general revenues of $34,463,014. Total governmental activities during the year were $32,818,554, and as a result, net position increased by $8,352,544 to $80,814,773.
General government $ 8,019,100 $ 5,858,330 $ 1,130,430 $ 1,175,137 $ (6,888,670) $ (4,683,193) Public safety 14,418,616 13,129,413 1,013,760 856,636 (13,404,856) (12,272,777) Public works 6,906,891 5,642,968 2,092,711 1,733,794 (4,814,180) (3,909,174) Community development 2,070,234 1,518,891 1,663,927 1,731,566 (406,307) 212,675 Community services 1,047,421 975,860 807,256 777,331 (240,165) (198,529) Interest on long-term debt 356,292 369,215 - - (356,292) (369,215) Totals $ 32,818,554 $ 27,494,677 $ 6,708,084 $ 6,274,464 $ (26,110,470) $ (21,220,213) of Services Revenues of Services
2025 2024 2025 2024 2025 2024
Table 2.1
Net Cost of Governmental Activities
Total Cost Program Net Cost
11 Item L.2
Business Type Activities
Net position of the Proprietary Fund (Business Type activities) on June 30, 2025, as reflected in Table 1, was $51,018,357. As shown in Table 3, amounts paid by users of the Sanitation system and other operating revenue were $5,726,131 while the cost of providing Sanitation Services in FY 2025 was $5,287,758 resulting in a change in net position of $438,373.
The total cost of providing Solana Energy Alliance services was $579 while program revenues totaled $0 resulting in a change in net position of ($579). Please note that Solana Energy Alliance was closed out in FY 2025 and this will be the last time it is shown in the financial statements. 2025 2024 2025 2024 2025 2024
Sanitation $ 5,287,758 $ 7,886,664 $ 5,726,131 $ 5,737,058 $ 438,373 $(2,149,606) Solana Energy Alliance 579 1,840 - - (579) (1,840)
Total Business Activities $ 5,288,337 $ 7,888,504 $ 5,726,131 $ 5,847,517 $ 437,794 $(2,151,446) of Services Revenue of Services
Table 3
Net Cost of Business Type Activities
Total Cost Program Net Cost
12 Item L.2
Governmental Funds
The net change in Governmental Fund Balances is shown below in Table 4:
The General Fund, Fund Balance increased by $5,895,417 or 20.8% to $34,245,201 from July 1, 2024, to June 30, 2025. This was mainly due to a 95.8% increase ($1.5M) in Charges for Services Revenues related to impact fee revenues and a 33.8% decrease ($1.4M) in Capital Outlay Expenditures.
The Capital Projects Fund for the City’s Capital Improvement Program, Fund Balance increased by $3,323,291 from July 1, 2024 to June 30, 2025. This was mainly due to transfers requested by City Council for use of projected FY 2025 surplus from General Fund for FY 2026 capital projects.
General Fund Budgetary Highlights
Revenues:
Actual revenues exceed the final year-end budget by $2,306,299 or 6.7%. The largest variance was Use of Money & Property with a $1.26M positive variance due to the unrealized gain on investments and interest income for the PARS Trust.
Expenditures:
Actual expenditures incurred were lower than the final budget by $2,805,398 or 9.1%. The largest variance was in Capital Outlay which came in $1.16M under budget. This was mainly due to ongoing projects carrying over into the next fiscal year. General Government department expenditures were below the final budget by $775K. This was mainly the result of professional service savings in several departments, as well as some salary savings due to vacancies.
Ending Fund Balance: Ending Fund Balance for the year increased by 20.8% from FY 2024, for a total ending balance of $34,245,201. Included in the fund balance are non-spendable, restricted, committed, and assigned funds which total $21,148,516. The unassigned portion is the part of the fund balance that is available for use without constraints established by legal requirements and totals $13,096,685.
Revenues:
Taxes, Licenses, Fees
and Intergovernmental $ 28,179,367 $ 27,622,696 $ - $ - $ 4,275,728 $ 4,342,179 $ 32,455,095 $ 31,964,875 Charges for Services 1,180,352 852,040 1,178,291 7,662 640,396 671,616 2,999,039 1,531,318 Other 7,253,928 7,266,741 507,007 202,352 623,397 610,124 8,384,332 8,079,217 Total Revenues 36,613,647 35,741,477 1,685,298 210,014 5,539,521 5,623,919 43,838,466 41,575,410 Expenditures:
Current 27,110,487 25,308,430 14,777 20,196 3,525,176 2,943,979 30,650,440 28,272,605 Capital Outlay 889,842 1,178,321 838,418 1,553,935 1,062,084 1,480,148 2,790,344 4,212,404 Debt 23,785 35,196 - - 332,507 395,479 356,292 430,675
Total Expenditures 28,024,114 26,521,947 853,195 1,574,131 4,919,767 4,819,606 33,797,076 32,915,684 Net Transfers (2,694,116) (4,050,000) 2,491,188 4,050,000 (86,126) - (289,054) - Net Change in
Fund Balances $ 5,895,417 $ 5,169,530 $ 3,323,291 $ 2,685,883 $ 533,628 $ 804,313 $ 9,752,336 $ 8,659,726 2025 2024 2025 2024 2025 2024 2025 2024
Table 4
City of Solana Beach Governmental Funds
Changes in Fund Balances
General Fund Capital Projects Fund Other Governmental Total City CIP Funds
13 Item L.2
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The capital assets of the City are those assets that are used in the performance of City functions including infrastructure assets. Capital assets include equipment, buildings, land, park facilities, and roads.
As of June 30, 2025, net capital assets of the governmental activities totaled $43,084,610 and the net capital assets of the business-type activities totaled $16,224,335. Depreciation of capital assets is recognized in government-wide financial statements. (See Table 5 below and Note 4 to the financial statements.)
Over the next five years, funding for capital assets will come from current fund balances and revenues such as Gas Tax and TransNet. Significant projects are the Annual Pavement and Storm Drain projects, Lomas Santa Fe Drive Corridor Improvements, Marine Safety Center Renovations, and sewer pipeline improvements and replacement projects.
Debt
At year-end, the City had $7,778,296 in governmental type debt and $14,605,977 in proprietary debt (both net of any premiums or discounts) totaling $22,384,273. In addition to Bonds and Leases, debt as displayed here in the MD&A includes Claims, Judgements and Compensated Absences. These are liabilities of the city and amount to $1,743 per capita as of June 30, 2025, which is an increase of $12 from $1,731 on June 30, 2024.
See Table 6 below and Notes 9 and 10 to the financial statements for detailed descriptions.
Note: the beginning balances for Compensated Absences were restated due to GASB 101, more information can be found in Note 16.
2025 2024
Land $ 5,337,440 $ 5,337,440 $ 111,706 $ 111,706 $ 5,449,146 $ 5,449,146 Buildings 10,380,895 9,274,596 5,758,129 5,883,585 16,139,024 15,158,181 Equipment &
Vehicles 1,014,081 973,964 198,388 214,920 1,212,469 1,188,884 Infrastructure 22,730,435 24,182,159 10,156,112 10,529,844 32,886,547 34,712,003 Work in Progress 3,621,759 3,370,260 - - 3,621,759 3,370,260 $ 43,084,610 $ 43,138,419 $ 16,224,335 $ 16,740,055 $ 59,308,945 $ 59,878,474 2025 2024 2025 2024
Table 5
City of Solana Beach Capital Assets at Year-End
(Net of Accumulated Depreciation)
Governmental Business Type
Total
Activities Activities
14 Item L.2
NEXT YEAR’S BUDGET AND ECONOMIC FACTORS
In June 2025, the City Council adopted a two-year budget for fiscal years ending June 30, 2026, and June 30, 2027.
In considering the City Budget, the focus of the City Council and management was to adopt balanced budgets and promote fiscal sustainability. Budget decisions were made with the understanding that, although the current economic climate was markedly improved, the City’s growth rate for certain revenues was still uneven and uncertain and that the rate of any expenditure cost increase needed to be closely evaluated and monitored. The challenge given these circumstances was to prepare a budget that held costs in line while continuing to provide high quality services and to move forward implementing the City’s five-year capital improvement plan.
Overall, General Fund & Measure revenues are projected to decrease for FY 2026 by $355k million or 1.1%, as compared to the FY 2025 actual revenues. The primary decrease is related to conservatively budgeting for interest income and the FY25 actuals being higher than budgeted for Property Tax and unrealized gains on investments.
General Fund & Measure S expenditures are projected to decrease for FY 2026 by $1.9 million or 6.5% as compared to FY 2025 actual expenditures. This is due to one-time FY 2025 expenditures approved by City Council to move projected surplus to CIP fund, PARS & OPEB Trust, Asset Replacement, and Facilities Replacement.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s fiduciary responsibility for the funds it receives. If you have questions about this report or need additional financial information, contact the City’s Finance Department, at the City of Solana Beach, 635 South Highway 101, Solana Beach, California 92075 or online: https://www.cityofsolanabeach.org Loan Payable $ 167,184 $ 230,155 $ - $ - $ 167,184 $ 230,155 2017 - SEJPA Loan Payable - - 9,647,500 9,902,500 9,647,500 9,902,500 2017 Wastewater Refunding Bond - - 4,565,000 4,895,000 4,565,000 4,895,000 TransNet Bond 5,500,000 5,500,000 - - 5,500,000 5,500,000 Bond premiums - - 281,101 306,656 281,101 306,656
Claims and judgements 872,000 780,015 - - 872,000 780,015 Compensated absences 1,239,112 812,752 112,376 71,062 1,351,488 883,814 $ 7,778,296 $ 7,322,922 $ 14,605,977 $ 15,175,218 $ 22,384,273 $ 22,498,140 2024
Table 6
City of Solana Beach Outstanding Debt at Year-End
Governmental Business Type
Total
Activities Activities
2025 2024 2025 2024 2025
15 Item L.2
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16 Item L.2
FINANCIAL SECTION
17 Item L.2
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18 Item L.2
BASIC FINANCIAL STATEMENTS
19 Item L.2
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20 Item L.2
GOVERNMENT-WIDE FINANCIAL STATEMENTS
21 Item L.2
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22 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
STATEMENT OF NET POSITION
JUNE 30, 2025
(WITH COMPARATIVE TOTALS FOR JUNE 30, 2024)
Governmental Business-Type
Activities Activities 2025 2024
ASSETS
Cash and investments (Note 3) $ 53,463,638 $ 12,943,357 $ 66,406,995 $ 60,173,477 Restricted cash and investments (Note 3) 8,473,683 - 8,473,683 6,764,356 Investment in joint venture (Note 13) - 37,827,254 37,827,254 36,743,833 Receivables:
Accounts, net 1,099,047 125,775 1,224,822 1,123,030
Interest 156,679 81,595 238,274 189,806
Intergovernmental 1,999,644 566,411 2,566,055 2,705,155 Internal balances (433,644) 433,644 - -
Inventories 63,200 - 63,200 44,707
Prepaid costs 1,808,044 - 1,808,044 41,024
Capital assets not being depreciated (Note 4) 8,959,199 111,706 9,070,905 8,819,406 Capital assets, net of accumulated depreciation (Note 4) 34,125,411 16,112,629 50,238,040 51,059,068 Total Assets 109,714,901 68,202,371 177,917,272 167,663,862
DEFERRED OUTFLOWS OF RESOURCES
Pension related (Note 5) 5,659,837 728,144 6,387,981 8,429,098 OPEB related (Note 6) 3,399 1,862 5,261 6,905
Total Deferred Outflows of Resources 5,663,236 730,006 6,393,242 8,436,003
LIABILITIES
Accounts payable 2,793,641 92,195 2,885,836 2,341,601
Accrued liabilities 548,972 32,119 581,091 442,083
Accrued interest payable - 188,548 188,548 196,098
Deposits payable 2,906,815 - 2,906,815 3,944,073
Unearned revenue 703,395 - 703,395 647,696
Noncurrent Liabilities:
Due within one year: bonds, loans,
claims, compensated absences (Note 9) 948,186 658,367 1,606,553 1,078,912 Due in more than one year:
Net pension liability (Note 5) 18,421,345 2,369,927 20,791,272 20,990,681 Net OPEB liability (Note 6) 801,379 439,146 1,240,525 1,704,004 Bonds, loans, claims,
compensated absences (Note 9) 6,830,110 13,947,611 20,777,721 21,225,418 Total Liabilities 33,953,843 17,727,913 51,681,756 52,570,566
DEFERRED INFLOWS OF RESOURCES
Pension related (Note 5) 352,710 45,377 398,087 795,950 OPEB related (Note 6) 256,811 140,730 397,541 496,673
Total Deferred Inflows of Resources 609,521 186,107 795,628 1,292,623
NET POSITION
Net investment in capital assets (Note 11) 37,417,426 11,378,234 48,795,660 48,946,663 Restricted:
Redevelopment activities 2,817,762 - 2,817,762 2,606,367 Public safety 1,261,380 - 1,261,380 1,208,303
Public works 4,714,875 - 4,714,875 4,973,618
Capital projects 14,964,016 - 14,964,016 11,439,272
Debt service 24,916 - 24,916 25,886
Pensions 8,473,683 - 8,473,683 6,764,356
Unrestricted 11,140,715 39,640,123 50,780,838 46,272,211 Total Net Position $ 80,814,773 $ 51,018,357 $ 131,833,130 $ 122,236,676 Total
Primary Government
See Accompanying Notes to the Basic Financial Statements. 23 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
(WITH COMPARATIVE TOTALS FOR JUNE 30, 2024)
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs:
Primary Government:
Governmental Activities:
General government $ 8,019,100 $ 1,130,430 $ - $ -
Public safety 14,418,616 600,546 413,214 -
Community development 2,070,234 1,636,506 16,296 11,125 Community services 1,047,421 612,593 194,663 -
Public works 6,906,891 608,376 1,484,335 -
Interest 356,292 - - -
Total Governmental Activities 32,818,554 4,588,451 2,108,508 11,125 Business-Type Activities:
Sanitation Fund 5,287,758 5,726,131 - -
Solana Energy Alliance Fund 579 - - -
Total Business-Type Activities 5,288,337 5,726,131 - -
Total Primary Government $ 38,106,891 $ 10,314,582 $ 2,108,508 $ 11,125 General Revenues:
Taxes:
Property taxes, levied for general purpose
Sales taxes
Transient occupancy taxes
Franchise taxes
Motor Vehicle in Lieu - unrestricted
Use of money and property
Miscellaneous revenues
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning, as previously reported
Implementation of GASB 101 (Note 16)
Net Position - Beginning, as restated
Net Position - Ending
Program Revenues
See Accompanying Notes to the Basic Financial Statements. 24 Item L.2
Governmental Business-Type
Activities Activities 2025 2024
$ (6,888,670) $ - $ (6,888,670) $ (4,683,193)
(13,404,856) - (13,404,856) (12,272,777)
(406,307) - (406,307) 212,675
(240,165) - (240,165) (198,529)
(4,814,180) - (4,814,180) (3,909,174)
(356,292) - (356,292) (369,215)
(26,110,470) - (26,110,470) (21,220,213)
- 438,373 438,373 (2,149,606)
- (579) (579) (1,840)
- 437,794 437,794 (2,151,446)
(26,110,470) 437,794 (25,672,676) (23,371,659)
12,982,043 - 12,982,043 12,352,534
9,347,509 - 9,347,509 9,470,357
2,896,492 - 2,896,492 2,883,709
814,434 - 814,434 857,126
2,320,937 - 2,320,937 2,194,459
4,129,929 601,863 4,731,792 2,996,318
2,260,724 109,012 2,369,736 1,879,295
(289,054) 289,054 - -
34,463,014 999,929 35,462,943 32,633,798
8,352,544 1,437,723 9,790,267 9,262,139
72,648,765 49,587,911 122,236,676 112,974,537
(186,536) (7,277) (193,813) -
72,462,229 49,580,634 122,042,863 112,974,537
$ 80,814,773 $ 51,018,357 $ 131,833,130 $ 122,236,676
Net (Expense) Revenue and Changes in Net Position
Primary Government
Total
25 Item L.2
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26 Item L.2
FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
27 Item L.2
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28 Item L.2
GOVERNMENTAL FUND FINANCIAL STATEMENTS
29 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2025
(WITH COMPARATIVE TOTALS FOR JUNE 30, 2024)
Capital
Projects Other
Fund Governmental
General City CIP Funds 2025 2024
ASSETS
Cash and investments $ 27,009,441 $ 12,964,922 $ 13,489,275 $ 53,463,638 $ 47,413,846 Restricted cash and investments 8,473,683 - - 8,473,683 6,764,356 Receivables:
Accounts 920,897 117,677 60,473 1,099,047 969,861
Accrued interest - 39,080 117,599 156,679 149,564
Intergovernmental 1,883,134 - 116,510 1,999,644 2,117,820 Due from other funds (Note 12) 100,660 - - 100,660 399,366 Inventories - - 63,200 63,200 44,707
Prepaid costs 1,808,044 - - 1,808,044 41,024
Total Assets $ 40,195,859 $ 13,121,679 $ 13,847,057 $ 67,164,595 $ 57,900,544
LIABILITIES
Accounts payable $ 2,127,317 $ 421,774 $ 244,550 $ 2,793,641 $ 2,063,020 Accrued liabilities 475,191 - 73,781 548,972 414,298
Deposits payable 2,906,360 - 455 2,906,815 3,944,073
Due to other funds (Note 12) - - 100,660 100,660 50,767 Advances from other funds (Note 12) 433,644 - - 433,644 855,558 Unearned revenues 8,146 - 695,249 703,395 647,696
Total Liabilities 5,950,658 421,774 1,114,695 7,487,127 7,975,412 FUND BALANCES (Note 11)
Nonspendable 1,808,044 - 63,200 1,871,244 85,731
Restricted 8,473,683 12,699,905 12,855,414 34,029,002 28,406,318 Committed 1,145,577 - - 1,145,577 1,292,880
Assigned 9,721,212 - - 9,721,212 6,786,980
Unassigned (Deficit) 13,096,685 - (186,252) 12,910,433 13,353,223 Total Fund Balances 34,245,201 12,699,905 12,732,362 59,677,468 49,925,132 Total Liabilities and Fund Balances $ 40,195,859 $ 13,121,679 $ 13,847,057 $ 67,164,595 $ 57,900,544 Totals
See Accompanying Notes to the Basic Financial Statements. 30 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2025
Total Fund Balances - Governmental Funds $ 59,677,468
Capital assets of $123,350,755, net of accumulated depreciation of $80,266,145, used in governmental activities are not financial resources and, therefore, are not reported in the funds. 43,084,610
Differences between expected and actual experiences, assumption changes, and net differences between projected and actual earnings and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position.
Deferred outflows - pension related 5,659,837
Deferred outflows - OPEB related 3,399
Deferred inflows - pension related (352,710)
Deferred inflows - OPEB related (256,811)
Total Deferred Outflows and Inflows Related to Postemployment Benefits 5,053,715 Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.
Bonds payable (5,500,000)
Compensated absences (1,239,112)
Claims (872,000)
Loans payable (167,184)
Net OPEB liability (801,379)
Net pension liability (18,421,345)
Total Long-term Liabilities (27,001,020)
Net Position of Governmental Activities $ 80,814,773
Amounts reported for governmental activities in the Statement of Net Position are different because:
See Accompanying Notes to the Basic Financial Statements. 31 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(WITH COMPARATIVE TOTALS FOR JUNE 30, 2024)
Capital
Projects Other
Fund Governmental
General City CIP Funds 2025 2024
REVENUES
Taxes and assessments $ 27,111,761 $ - $ 3,033,137 $ 30,144,898 $ 29,507,231 Licenses, permits and fees 829,423 - 32,607 862,030 815,647 Intergovernmental 238,183 - 1,209,984 1,448,167 1,641,997 Charges for services 1,180,352 1,178,291 640,396 2,999,039 1,531,318 Use of money and property 2,002,476 505,257 590,041 3,097,774 2,435,455 Fines and forfeitures 517,129 - - 517,129 528,722
Other revenues 4,734,323 1,750 33,356 4,769,429 5,115,040 Total Revenues 36,613,647 1,685,298 5,539,521 43,838,466 41,575,410
EXPENDITURES
Current:
General government 7,626,488 - - 7,626,488 7,309,390
Public safety 13,233,829 - 1,063,818 14,297,647 13,610,080 Public works 3,581,259 14,777 2,157,073 5,753,109 4,698,902 Community development 1,691,206 - 115,500 1,806,706 1,662,678 Community services 977,705 - 125,814 1,103,519 991,555
Capital outlay 889,842 838,418 1,062,084 2,790,344 4,212,404 Debt service:
Principal retirement - - 62,971 62,971 60,855
Interest and fiscal charges 23,785 - 332,507 356,292 369,820 Total Expenditures 28,024,114 853,195 4,919,767 33,797,076 32,915,684 Excess (Deficiency) of Revenue
Over (Under) Expenditures 8,589,533 832,103 619,754 10,041,390 8,659,726
OTHER FINANCING SOURCES (USES)
Transfers in (Note 12) 1,004,938 2,491,188 70,375 3,566,501 4,120,375 Transfers out (Note 12) (3,699,054) - (156,501) (3,855,555) (4,120,375) Total Other Financing Sources (Uses) (2,694,116) 2,491,188 (86,126) (289,054) - Net Change in Fund Balances 5,895,417 3,323,291 533,628 9,752,336 8,659,726 Fund Balances - Beginning 28,349,784 9,376,614 12,198,734 49,925,132 41,265,406 Fund Balances - Ending $ 34,245,201 $ 12,699,905 $ 12,732,362 $ 59,677,468 $ 49,925,132 Total Governmental Funds
See Accompanying Notes to the Basic Financial Statements. 32 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
Net Change in Fund Balances - Total Governmental Funds $ 9,752,336 Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation expense in the current period.
Depreciation (2,622,892)
Capital outlay 2,569,083 (53,809)
Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.
Principal paid on long-term liabilities 62,971
Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.
Compensated absences (426,360)
Claims and judgments (91,984)
Changes in pension liabilities and related deferred outflows and inflows of resources (1,233,472)
Changes in OPEB liabilities and related deferred outflows and inflows of resources 342,862
Total Expenses (1,408,954)
Change in Net Position of Governmental Activities $ 8,352,544 See Accompanying Notes to the Basic Financial Statements. 33 Item L.2
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34 Item L.2
PROPRIETARY FUND FINANCIAL STATEMENTS
35 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2025
(WITH COMPARATIVE TOTALS FOR JUNE 30, 2024)
Solana Energy
Sanitation Fund Alliance Fund 2025 2024
ASSETS
Current Assets:
Cash and investments (Note 3) $ 12,943,357 $ - $ 12,943,357 $ 12,759,631 Receivables:
Accounts 125,775 - 125,775 153,169
Interest 81,595 - 81,595 40,242
Intergovernmental 566,411 - 566,411 587,335
Total Current Assets 13,717,138 - 13,717,138 13,540,377 Noncurrent Assets:
Advances to other funds (Note 12) 433,644 - 433,644 855,558 Investment in joint venture (Note 13) 37,827,254 - 37,827,254 36,743,833 Capital assets not being depreciated (Note 4) 111,706 - 111,706 111,706 Capital assets, net of accumulated depreciation (Note 4) 16,112,629 - 16,112,629 16,628,349 Total Noncurrent Assets 54,485,233 - 54,485,233 54,339,446 Total Assets 68,202,371 - 68,202,371 67,879,823
DEFERRED OUTFLOWS OF RESOURCES
Pension related 728,144 - 728,144 931,907
OPEB related 1,862 - 1,862 2,506
Total Deferred Outflows of Resources 730,006 - 730,006 934,413
LIABILITIES
Current Liabilities:
Accounts payable 92,195 - 92,195 278,581
Accrued liabilities 32,119 - 32,119 27,785
Compensated absences (Note 9) 25,312 - 25,312 25,312
Accrued interest payable 188,548 - 188,548 196,098
Due to other funds (Note 12) - - - 348,599
Loans and bonds payable - current (Note 9) 633,055 - 633,055 585,000 Total Current Liabilities 971,229 - 971,229 1,461,375
Noncurrent Liabilities:
Compensated absences (Note 9) 87,064 - 87,064 38,474
Loans and bonds payable (Note 9) 13,860,547 - 13,860,547 14,519,156 Net pension liability 2,369,927 - 2,369,927 2,320,695
Net OPEB liability 439,146 - 439,146 618,383
Total Noncurrent Liabilities 16,756,684 - 16,756,684 17,496,708 Total Liabilities 17,727,913 - 17,727,913 18,958,083
DEFERRED INFLOWS OF RESOURCES
Pension related 45,377 - 45,377 87,999
OPEB related 140,730 - 140,730 180,243
-
Total Deferred Inflows of Resources 186,107 - 186,107 268,242
NET POSITION
Net investment in capital assets (Note 11) 11,378,234 - 11,378,234 11,538,399 Unrestricted 39,640,123 - 39,640,123 38,049,512
Total Net Position $ 51,018,357 $ - $ 51,018,357 $ 49,587,911 Total Proprietary Funds
See Accompanying Notes to the Basic Financial Statements. 36 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(WITH COMPARATIVE TOTALS FOR JUNE 30, 2024)
Sanitation Solana Energy
Fund Alliance Fund 2025 2024
OPERATING REVENUES
Charges for services $ 5,726,131 $ - $ 5,726,131 $ 5,737,058 Miscellaneous revenue 108,507 505 109,012 134,739
Total Operating Revenues 5,834,638 505 5,835,143 5,871,797
OPERATING EXPENSES
Cost of sales and services 3,365,090 - 3,365,090 3,581,378 Administration 1,260,793 579 1,261,372 2,309,990
Depreciation 559,528 - 559,528 560,246
Total Operating Expenses 5,185,411 579 5,185,990 6,451,614 Operating Income (Loss) 649,227 (74) 649,153 (579,817)
NONOPERATING REVENUES (EXPENSES)
Interest income 601,863 - 601,863 560,865
Interest expense (555,189) - (555,189) (577,500)
Share in joint venture net gain/(loss) 452,842 - 452,842 (859,390) Total Nonoperating Revenues (Expenses) 499,516 - 499,516 (876,025) Transfers In - 289,054 289,054 -
Change in Net Position 1,148,743 288,980 1,437,723 (1,455,842) Net Position - Beginning, as previously reported 49,876,891 (288,980) 49,587,911 51,043,753 Implementation of GASB 101 (Note 16) (7,277) - (7,277) - Net Position - Beginning, as restated 49,869,614 (288,980) 49,580,634 51,043,753 Net Position - Ending $ 51,018,357 $ - $ 51,018,357 $ 49,587,911 Total Proprietary Funds
See Accompanying Notes to the Basic Financial Statements. 37 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(WITH COMPARATIVE TOTALS FOR JUNE 30, 2024)
Sanitation Solana Energy
Fund Alliance Fund 2025 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 5,822,542 $ 60,919 $ 5,883,461 $ 6,057,704 Payments to suppliers and service providers (3,545,785) (1,357) (3,547,142) (3,407,634) Payments to employees for salaries and benefits (1,227,213) (579) (1,227,792) (1,162,508) Net Cash Provided by (Used for) Operating Activities 1,049,544 58,983 1,108,527 1,487,562
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Repayment received from capital-related interfund borrowings 421,914 - 421,914 410,503 Advances made for capital-related interfund borrowings - (59,545) (59,545) (183,887) Acquisition and construction of capital assets (43,808) - (43,808) (205,516) Principal paid on capital debt (585,000) - (585,000) (565,000) Interest paid on capital debt (588,293) - (588,293) (610,588) Net Cash Provided by (Used for) Capital and Related Financing Activities (795,187) (59,545) (854,732) (1,154,488)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 560,510 - 560,510 550,672
Payments to investment in joint venture (630,579) - (630,579) (548,657) Net Cash Provided by (Used for) Investing Activities (70,069) - (70,069) 2,015 Net Increase (Decrease) in Cash and Cash Equivalents 184,288 (562) 183,726 335,089 Cash and Cash Equivalents - Beginning 12,759,069 562 12,759,631 12,424,542 Cash and Cash Equivalents - Ending $ 12,943,357 $ - $ 12,943,357 $ 12,759,631 Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities:
Operating income (loss) $ 649,227 $ (74) 649,153 $ (579,817) Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided by (Used for) Operating Activities:
Depreciation expense 559,528 - 559,528 560,246
(Increase) decrease in accounts receivable (29,020) 56,414 27,394 (31,609) (Increase) decrease in intergovernmental receivables 16,924 4,000 20,924 217,516 (Increase) decrease in pension related deferred outflows of resources 203,763 - 203,763 (292,615) (Increase) decrease in OPEB related deferred outflows of resources 644 - 644 4,510 Increase (decrease) in accounts payable (186,386) - (186,386) 210,925 Increase (decrease) in accrued liabilities 5,691 (1,357) 4,334 (37,181) Increase (decrease) in compensated absences 41,313 - 41,313 (7,894) Increase (decrease) in net pension liability 49,232 - 49,232 868,920 Increase (decrease) in net OPEB liability (179,237) - (179,237) 451,004 Increase (decrease) in pension related deferred inflows of resources (42,622) - (42,622) (22,121) Increase (decrease) in OPEB related deferred inflows of resources (39,513) - (39,513) 145,678
Total Adjustments 400,317 59,057 459,374 2,067,379
Net Cash Provided by (Used for) Operating Activities $ 1,049,544 $ 58,983 $ 1,108,527 $ 1,487,562 Schedule of Non-Cash Investing, Capital, and Financing Activities:
Amortization of bonds premium/discount $ 25,555 $ - $ 25,555 $ 25,555 Total Proprietary Funds
See Accompanying Notes to the Basic Financial Statements. 38 Item L.2
FIDUCIARY FUND FINANCIAL STATEMENTS
39 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2025
Pension (and Other
Employee Benefit) Private-Purpose
Trust Fund Trust Fund
OPEB Successor Agency
Trust Fund of the Former RDA Custodial Funds
ASSETS
Cash and cash equivalents (Note 3) $ - $ 47,877 $ 330,031 Investments (Note 3):
Exchange traded funds 2,464,963 - 432
Local Agency Investment Fund - - 60,535
Asset-backed securities - - 15,212
Federal agency securities - - 45,456
Medium term corporate notes - - 40,125
Supranational securities - - 3,894
US Treasury securities - - 95,197
Receivables:
Due from other governments - - 5,901
Total Assets 2,464,963 47,877 596,782
LIABILITIES
Accounts payable - - 2,033
Accrued liabilities - 1,097 -
Accrued interest - 4,940 -
Long-term liabilities:
Due in one year (Note 15) - 142,700 -
Due in more than one year (Note 15) - 1,621,500 -
Total Liabilities - 1,770,237 2,033
NET POSITION (DEFICIT)
Restricted for:
Postemployment benefits other than pensions 2,464,963 - - Individuals, organizations, and other governments - (1,722,360) 594,749 Total Net Position (Deficit) $ 2,464,963 $ (1,722,360) $ 594,749 See Accompanying Notes to the Basic Financial Statements. 40 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Pension (and Other
Employee Benefit) Private-Purpose
Trust Fund Trust Fund
OPEB Successor Agency
Trust Fund of the Former RDA Custodial Funds
ADDITIONS
Employers contributions $ 338,673 $ - $ -
Investment earnings 175,630 461 533
Property taxes - 224,799 -
Special assessment collections - - 230,466
Total Additions 514,303 225,260 230,999
DEDUCTIONS
Administrative expenses - 55,858 -
Contractual services 10,714 - 6,244
Principal expense - - 100,000
Interest expense - 62,391 105,991
Total Deductions 10,714 118,249 212,235
Net Increase in Fiduciary Net Position 503,589 107,011 18,764 Net Position (Deficit) - Beginning 1,961,374 (1,829,371) 575,985 Net Position (Deficit) - Ending $ 2,464,963 $ (1,722,360) $ 594,749 See Accompanying Notes to the Basic Financial Statements. 41 Item L.2
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42 Item L.2
NOTES TO THE BASIC
FINANCIAL STATEMENTS
43 Item L.2
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44 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
Note 1: Summary of Significant Accounting Policies
The basic financial statements of the City of Solana Beach, California (the “City”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below. a. Financial Reporting Entity
The City was formed July 1, 1986 after an election held June 3, 1986 in the proposed incorporated area. The City's incorporation involved a reorganization consisting primarily of the incorporation of the City of Solana Beach; the detachment of territory from the Cardiff Sanitation District and annexation of the same territory to the Solana Beach Sanitation District; the establishment of the Solana Fire Protection District and Solana Beach Sanitation District as subsidiary districts of the City; and the establishment of five improvement districts of the City, which coincided with five previously existing county service areas (CSAs). The City merged the Fire District (“District”) into the City by dissolving the District and creating a separate Fire Department within the City's General Fund effective January 1, 1988. Effective July 1, 1990, the Solana Beach Sanitation District was dissolved and is now a department of the City.
The Solana Beach Public Facilities Corporation (Corporation) was incorporated on July 25, 1990 as a nonprofit public benefit corporation duly organized and existing under the Nonprofit Public Benefit Corporation Law. Its purpose is to benefit the City by providing financing for the planning, development, acquisition, construction, improvement, extension, repair, and renovation of public works projects, public facilities, furnishings, and equipment for use by the City. The Corporation does not issue separate financial statements. The City’s basic financial statements have the Corporation included using the blended method since the governing bodies of the component unit is substantially the same as the governing body of the City. The Corporation provides services entirely to the City. b. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled.
Government-Wide Financial Statements
The City’s Government–Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of Governmental and Business-Type Activities for the City, the primary government, accompanied by a total column. Fiduciary activities of the City are not included in these statements.
45 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 1: Summary of Significant Accounting Policies (Continued) The Government-Wide Financial Statements are presented on an “economic resources” measurement focus and the accrual basis of accounting.
Accordingly, all of the City’s assets and liabilities, including capital assets and related infrastructure assets and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
Certain types of transactions are reported as program revenues for the City in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regard to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column.
In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
Due to, Due from other funds
Advances to, Advances from other funds
Transfers in, Transfers out
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements.
All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. 46 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 1: Summary of Significant Accounting Policies (Continued) Revenues are recorded when received in cash, except those revenues subject to accrual (90 days after year-end, with the exception of property taxes, which is 60 days) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, sales taxes, franchise taxes, gas taxes, transient occupancy taxes, intergovernmental revenues, and other taxes.
Expenditures are recorded in the accounting period in which the related fund liability is incurred.
Unavailable revenues arise when potential revenues do not meet both the “measurable” and “available” criteria for recognition in the current period. Unearned revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unavailable revenue is removed from the balance sheet and revenue is recognized.
The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences.
The City reports the following major governmental funds:
General Fund - accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In Solana Beach, these services include general government, public safety, public works, community development, and community services.
City CIP Capital Projects Fund - accounts for the acquisition, construction and improvement of capital facilities and infrastructure. Projects are funded by transfers from the General Fund.
Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses and Change in Net Position, and a Statement of Cash Flows for all proprietary funds.
Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. 47 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 1: Summary of Significant Accounting Policies (Continued) Operating revenues, such as charges for services, in the proprietary funds are those revenues that are generated from exchange transactions as the primary operations of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. All other revenues, such as subsidies, taxes, and investment earnings, which result from non-exchange transactions or ancillary activities are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.
The City reports the following major proprietary funds:
Sanitation Fund - is used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that costs of providing sewage and wastewater treatment services to the general public on a continuing basis be financed or recovered primarily through user charges.
Solana Energy Alliance Fund - is used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that costs of providing clean energy services to the general public on a continuing basis be financed or recovered primarily though user charges.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds include custodial funds, one pension (and other employee benefits) trust fund, and one privatepurpose trust fund.
Custodial funds are used to account for collections received from special assessment districts and their disbursement to bondholders. Spending of custodial fund resources is controlled primarily through legal agreements and applicable State and Federal laws.
The Pension (and Other Employee Benefit) Trust Fund is used to report resources held in trust for retirees and beneficiaries covered by the City.
The Private-Purpose Trust Fund is used to account for the assets and liabilities of the former redevelopment agency and the allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former redevelopment agency are paid in full and assets have been liquidated.
The Fiduciary Funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. c. Cash, Cash Equivalents, and Investments
The City pools its available cash for investment purposes. The City considers pooled cash and investment amounts, with original maturities of three months or less, to be cash equivalents.
48 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 1: Summary of Significant Accounting Policies (Continued) c. Cash, Cash Equivalents, and Investments (Continued)
The cash flow statements require presentation of “cash and cash equivalents”. For the purpose of the statement of cash flows, the City considers all proprietary fund pooled cash and investments as “cash and cash equivalents”, as such funds are available to the various funds as needed.
Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value.
The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF) which has invested a portion of the pool funds in structured notes and asset-backed securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these structured notes and asset-backed securities are subject to market risk and to changes in interest rates.
d. Restricted Cash and Investments
Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt, pensions, OPEB, and for the acquisition and construction of capital projects. e. Fair Value Measurement
Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are described as follows:
Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including:
Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in markets that are inactive; Inputs other than quoted prices that are observable for the asset or liability; Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). These unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data. 49 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 1: Summary of Significant Accounting Policies (Continued) f. Capital Assets
Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not available. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value at the time of acquisition by the City. City policy has set the capitalization threshold for reporting infrastructure and all other capital assets at $5,000. Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:
The City defines infrastructure as the basic physical assets that allow the City to function.
The assets include roads and streets, curbs, gutters and sidewalks, streetlights, signs and signals, park equipment, and storm drains. The appropriate operating department maintains information regarding the infrastructure assets.
For all infrastructure systems, the City elected to use the Basic Approach as defined by GASB Statement No. 34 for infrastructure reporting. The City commissioned an appraisal of City owned infrastructure and property that determined the original cost, which is defined as the actual cost to acquire new property in accordance with market prices at the time of first construction/acquisition.
Original costs were developed in one of three ways: (1) historical records; (2) standard unit costs appropriate for the construction/acquisition date; or (3) present cost indexed by a reciprocal factor of the price increase from the construction/acquisition date to the current date. The accumulated depreciation, defined as the total depreciation from the date of construction/acquisition to the current date on a straight line, unrecovered cost method was computed using industry accepted life expectancies for each infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation from the original cost.
g. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position and governmental fund balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has two items that qualify for reporting in this category. These are the deferred outflows relating to the net pension and other post-employment benefit (OPEB) obligations reported in the government-wide statement of net position and proprietary statement of net position.
Buildings and improvements 20-50 years
Equipment 3-25 years
Vehicles 5-10 years
Infrastructure - sewer lines 40-50 years
Infrastructure - other 20-60 years
50 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 1: Summary of Significant Accounting Policies (Continued) In addition to liabilities, the statement of financial position or governmental fund balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net asset that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City reports one item, which arises only under the modified accrual basis of accounting that qualifies for reporting in this category. The City reports two other items that qualify for reporting in this category which are the deferred inflows related to the pensions and other post-employment benefits reported in the government-wide statement of net position and proprietary statement of net position.
h. Long-Term Liabilities
In the government-wide financial statements, proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Position. Bond premiums and discounts are amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. i. Compensated Absences
During the year ended June 30, 2025, the City adopted new accounting guidance by implementing the provisions of Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences, which seeks to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. See Note 16 for additional information.
Government-Wide Financial Statements
For governmental activities, compensated absences are recorded as incurred and the related expenses and liabilities are reported.
Fund Financial Statements
In governmental funds, compensated absences are recorded as expenditures in the years paid, as it is the City’s policy to liquidate any unpaid vacation or sick leave at June 30 from future resources, rather than currently available financial resources.
Accordingly, the entire unpaid liability for the governmental funds is recorded in the government-wide financial statements, as these amounts will be liquidated from future resources. In the proprietary fund, compensated absences are expensed in the period they are earned, and the unpaid liability is recorded as a long-term liability of the fund.
51 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 1: Summary of Significant Accounting Policies (Continued) j. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
k. Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan), the assets of which are held by Public Agency Retirement Services (PARS), and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined by an independent actuary.
For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2023
Measurement Date June 30, 2025
Measurement Period July 1, 2024 to June 30, 2025
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss with the net difference between projected and actual earnings on OPEB plan investments being recognized over five years and all other amounts being recognized over the expected average remaining service lifetime (EARSL) of
7.9 years at June 30, 2023.
52 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 1: Summary of Significant Accounting Policies (Continued) l. Net Position
In the Government-Wide and Proprietary Fund Financial Statements, net position is classified in the following categories:
Net Investment in Capital Assets – This amount consists of capital assets, net of accumulated depreciation and reduced by outstanding debt that was issued for the acquisition, construction, or improvement of the assets.
Restricted Net Position – This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.
Unrestricted Net Position – This amount is all net position that do not meet the definition of “net investment in capital assets” or “restricted net position.” When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first. m. Net Position Flow Assumption
Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.
n. Fund Balances
In the Governmental Fund Financial Statements, fund balances are classified in the following categories:
Nonspendable – Items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds.
Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws, or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.
Committed – Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body, and that remain binding unless removed in the same manner. The City Council is considered the highest authority for the City. The formal action required to establish, modify, or rescind a fund balance commitment is through a resolution.
53 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 1: Summary of Significant Accounting Policies (Continued) Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has authorized through a resolution the City Manager and the Director of Finance for that purpose.
Unassigned – This is the residual classification that includes all spendable amounts not contained in the other classifications. The General Fund is the only fund that reports a positive unassigned fund balance. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is to apply restricted fund balances first, then unrestricted fund balances as they are needed.
o. Fund Balance Flow Assumptions
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
o. Fund Balance Flow Assumptions (Continued)
When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order: committed, assigned, and unassigned.
p. Property Taxes
Property taxes are levied on July 1 and are payable in two installments: November 1 and February 1 of each year. Property taxes become delinquent on December 10 and April 10, for the first and second installments, respectively. The lien date is January 1. The County of San Diego, California (County) bills and collects the property taxes and remits them to the City in installments during the year. City property tax revenues are recognized when received in cash except at year end when they are accrued pursuant to the modified accrual basis of accounting. The City recognizes as revenues at June 30 available taxes or those collected within 90 days. The County is permitted by State law to levy taxes at 1% of full market value (at time of purchase) and can increase the assessed values no more than 2% per year. The City receives a share of this basic levy. 54 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 1: Summary of Significant Accounting Policies (Continued) q. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
r. Comparative Data
Selected information regarding the prior year has been included in the accompanying financial statements. This information has been included for comparison purposes only and does not represent a complete presentation in accordance with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the government’s prior year financial statements, from which this selected financial data was derived.
Note 2: Stewardship, Compliance, and Accountability
a. Excess of Expenditures over Appropriations
On June 30, 2025, no funds reported expenditures exceeding appropriations. b. Deficit Fund Equity
At June 30, 2025, the following nonmajor funds reported a deficit fund balance:
The deficit for the CDBG fund is due to the timing of reimbursements and revenues for its activities, and the Camp Program fund deficit was planned based on adopted budgets and both deficits are expected to be eliminated through future revenues and cost allocations. c. Budgetary Compliance
The Assessment Districts CIP capital projects fund and Boating and Waterways fund did not adopt a budget for the fiscal year ended June 30, 2025.
Nonmajor Fund Name Classification Deficit
CDBG Special Revenue Fund $ 17,478
Camp Programs Fund Special Revenue Fund 105,952
55 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 3: Cash and Investments
The following is a summary of pooled cash and investments and restricted cash and investments at June 30, 2025:
Cash and investments consisted of the following at June 30, 2025:
a. Cash Deposits
The carrying amounts of the City’s cash deposits were $12,798,367 at June 30, 2025.
Bank balances were $13,588,195 at that date. The total amount of which was collateralized or insured with securities held by the pledging financial institutions in the City’s name is discussed below. The $789,828 difference represents outstanding checks and other reconciling items.
Fiduciary
Funds
Governmental Business-Type Statement of
Activities Activities Net Position Total
Cash and investments $ 53,463,638 $ 12,943,357 $ 377,908 $ 66,784,903 Restricted cash and investments 8,473,683 - 2,725,813 11,199,496 Total
$ 61,937,321 $ 12,943,357 $ 3,103,721 $ 77,984,399
Government-Wide Statement of
Net Position
Cash and cash equivalents:
Cash on hand $ 400
Demand deposits 11,454,943
Total cash and cash equivalents 11,455,343
Investments:
Local Agency Investment Fund 21,774,201
United States Treasury 11,983,194
Federal Home Loan Bank 3,692,148
Federal Farm Credit Bank 3,708,911
Federal National Mortgage Association 496,935
Medium Term Notes 8,809,046
Money Market Funds 470,997
Supranationals 1,317,225
Asset Backed Securities 3,347,838
Total investments 55,600,495
Restricted investments (Section 115 Trust):
Equity Mutual Fund 10,713,048
Fixed Income Mutual Fund 215,513
Total restricted investments 10,928,561
Total cash and investments $ 77,984,399
56 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 3: Cash and Investments (Continued)
The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit).
The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. As of June 30, 2025, none of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts.
b. Investments
Investments Authorized by the California Government Code and the City’s Investment Policy
The following table identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk and concentration of credit risk. The City has no investments held by bond trustee.
*Maximum *Maximum
Authorized by Maximum Percentage of Investment in
Investment Types Authorized by State Law Investment Policy Maturity Portfolio One Issuer Local agency bonds Yes 5 years 30% 5%
U.S. Treasury bills Yes 5 years None None
U.S. Treasury notes Yes 5 years None None
State obligations - CA and others Yes 5 years 30% 5%
California local agency obligations Yes 5 years 30% 5%
U.S. agency securities Yes 5 years None None
Banker's acceptances Yes 180 days 40% 5%
Commercial paper Yes 270 days 25% 10%
Non-Negotiable certificates of deposit Yes 5 years 20% None Negotiable certificates of deposit Yes 5 years 30% 5%
Certificate of Deposit Placement Services Yes 5 years 30% None Collateralized Bank Deposits Yes N/A None None
Repurchase agreements Yes 1 year None None
Medium-term notes Yes 5 years 30% 5%
Mutual and money market funds Yes N/A 20% 10%
Mortgage pass-through and asset-backed securities Yes 5 years 20% 5% Asset backed security Yes 5 years 20% 5%
County pooled investment funds Yes N/A None None
Joint powers authority pool Yes N/A None None
Supranational Yes 5 years 30% 10%
Local Agency Investment Fund (LAIF) Yes N/A None None
* Based on state law or investment policy requirements, whichever is more restrictive. 57 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 3: Cash and Investments (Continued)
b. Investments (Continued)
Investments Authorized by Debt Agreements
Investments of debt proceeds held by fiscal agent are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table on the following page identifies the investment types that are authorized for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements that address interest rate risk and the concentration of credit risk.
Authorized Investment Type
Maximum
Maturity
Maximum
Percentage
Allowed
Maximum
Investment in
One Issuer
U.S. Treasury obligations None None None
U.S. agency securities None None None
Banker's acceptances 180 days None None
Commercial paper 270 days None None
Money market mutual funds 90 days None None
Investment contracts None None None
Local Agency Investment Fund (LAIF) N/A None None
Section 115 Trust
The City has set up an IRS Section 115 Trust for the purpose of setting funding aside for the unfunded pension liability. The Trust is currently invested in money market, equity, bond, and exchange-traded funds, and at June 30, 2025, the fair value of the assets held in trust is $9,585,137. The assets of the trust are reported as restricted cash and investments in the City’s General Fund, with a corresponding restriction in the General Fund’s fund balance.
b. External Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based on the City’s pro rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on accounting records maintained by LAIF, which are recorded on an amortized cost basis.
The entire balance of the City’s share of the investment pool is available for withdrawal at any time. LAIF is not registered with the Securities and Exchange Commission and is not rated. Deposits and withdrawals in LAIF are made on the basis of $1 and not fair value.
Accordingly, the City’s investment in this pool is measured on uncategorized inputs not defined as Level 1, 2, or 3.
58 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 3: Cash and Investments (Continued)
c. Risk Disclosures
Interest Rate Risk
Interest rate risk is the risk that the fair value of investments in the portfolio will fall due to changes in market interest rates. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City manages this risk by investing its operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pools to ensure liquidity and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. 12 Months 13 to 24 25 to 60
Fair Value or Less Months Months
Local Agency Investment Fund $ 21,774,201 $ 21,774,201 $ - $ - U.S. Treasury 11,983,194 4,720,718 4,643,405 2,619,071
U.S. Government Agency Securities:
Federal Home Loan Bank 3,692,148 - 3,182,318 509,830
Federal Farm Credit Bank 3,708,911 - 2,588,343 1,120,568 Federal National Mortgage Association 496,935 496,935 - - Medium-term Notes 8,809,046 1,177,558 5,823,221 1,808,267 Money Market Mutual Funds 470,997 470,997 - -
Supranationals 1,317,225 - 317,741 999,484
Asset Backed Securities 3,347,838 - 860,182 2,487,656
Investments Held in Section 115 Trust:
Equity Mutual Fund 10,713,048 10,713,048 - -
Fixed Income Mutual Fund 215,513 215,513 - -
$ 66,529,056 $ 39,568,970 $ 17,415,210 $ 9,544,876
Investments
Remaining Investment Maturities
59 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 3: Cash and Investments (Continued)
c. Risk Disclosures (Continued)
Credit Risk
Credit Risk is the risk of loss due to failure of the security issuer. The risk can be identified through the rating assigned by a nationally recognized statistical rating organization to the issuers of securities. The City minimizes this risk by investing only in investment types allowed for municipalities by the Government Code as listed in the City’s investment policy and investing only in instruments that are most creditworthy. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of June 30, 2025, for each investment type.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party.
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. The City investments in the US Government Agency issuers which held more than 5% of the investment portfolio are as follows:
Total as of Minimum
June 30, 2025 Legal Rating AAA AA+/Aa1 A Not Rated
Local Agency Investment Fund $ 21,774,201 N/A $ - $ - $ - $ 21,774,201 U.S. Treasury * 11,983,194 N/A - - - 11,983,194
U.S. Government Agency Securities:
Federal Home Loan Bank 3,692,148 N/A 3,692,148 - - -
Federal Farm Credit Bank 3,708,911 N/A 3,708,911 - - -
Federal National Mortgage Association 496,935 N/A 496,935 - - - Medium-term Notes 8,809,046 A - 1,415,863 7,393,183 -
Money Market Mutual Funds 470,997 AAA 470,997 - - -
Supranationals 1,317,225 AA 1,317,225 - - -
Asset Backed Securities 3,347,838 AA 3,347,838 - - -
Investments Held in Section 115 Trust:
Equity Mutual Fund 10,713,048 N/A - - - 10,713,048
Fixed Income Mutual Fund 215,513 N/A - - - 215,513
$ 66,529,056 $ 13,034,054 $ 1,415,863 $ 7,393,183 $ 44,685,956 * Exempt from rating disclosure
Investments
Issuer Investment Type Fair Value
Federal Home Loan Bank U.S. Government Agency Securities $ 3,692,148 Federal Farm Credit Bank U.S. Government Agency Securities 3,708,911 60 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 3: Cash and Investments (Continued)
d. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The following table represents the fair value measurements of investments recognized in the accompanying Statement of Net Position measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2025:
Note 4: Capital Assets
The following is a summary of changes in capital assets for governmental activities for the year ended June 30, 2025:
Level 1 Level 2 Uncategorized Total
Local Agency Investment Fund $ - $ - $ 21,774,201 $ 21,774,201 U.S. Treasury 11,983,194 - - 11,983,194
U.S. Government Agency Securities - 7,897,994 - 7,897,994 Medium-term Notes - 8,809,046 - 8,809,046
Supranationals - 1,317,225 - 1,317,225
Asset Backed Securities - 3,347,838 - 3,347,838
Equity Mutual Fund 10,713,048 - - 10,713,048
Fixed Income Mutual Fund 215,513 - - 215,513
Money Market Mutual Funds - - 470,997 470,997
Total $ 22,911,755 $ 21,372,103 $ 22,245,198 $ 66,529,056 Balance Balance
June 30, 2024 Additions Deletions June 30, 2025
Governmental Activities
Non-Depreciable Assets:
Land $ 5,337,440 $ - $ - $ 5,337,440
Construction in progress 3,370,260 2,129,807 (1,878,308) 3,621,759 Total non-depreciable assets 8,707,700 2,129,807 (1,878,308) 8,959,199 Depreciable Assets:
Buildings 6,014,902 - - 6,014,902
Improvements 14,392,922 1,692,827 - 16,085,749
Equipment 3,302,228 265,153 (455,082) 3,112,299
Vehicles 2,537,863 177,982 (144,307) 2,571,538
Infrastructure 86,425,446 181,622 - 86,607,068
Total depreciable assets 112,673,361 2,317,584 (599,389) 114,391,556 Less Accumulated Depreciation:
Buildings (3,601,832) (120,724) - (3,722,556)
Improvements (7,531,396) (465,804) - (7,997,200)
Equipment (2,765,065) (304,406) 455,082 (2,614,389)
Vehicles (2,101,062) (98,612) 144,307 (2,055,367)
Infrastructure (62,243,287) (1,633,346) - (63,876,633)
Total accumulated depreciation (78,242,642) (2,622,892) 599,389 (80,266,145) Total depreciable assets, net 34,430,719 (305,308) - 34,125,411 Total capital assets, net $ 43,138,419 $ 1,824,499 $ (1,878,308) $ 43,084,610 61 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 4: Capital Assets (Continued)
Governmental activities depreciation expense for capital assets for the year ended June 30, 2025, is as follows:
The following is a summary of changes in capital assets for business-type activities for the year ended June 30, 2025:
Business-type activities depreciation expense for capital assets for the year ended June 30, 2025, is $559,528, recorded in the Sanitation Fund.
General Government $ 211,880
Public Safety 262,172
Public Works 1,715,264
Community Development 5,774
Community Services 427,802
Total Depreciation Expense $ 2,622,892
Balance Balance
June 30, 2024 Additions Deletions June 30, 2025
Business-Type Activities
Non-Depreciable Assets:
Land $ 111,706 $ - $ - $ 111,706
Total non-depreciable assets 111,706 - - 111,706
Depreciable Assets:
Buildings 6,766,498 - - 6,766,498
Improvements 18,900,599 43,808 - 18,944,407
Equipment 828,705 - - 828,705
-
Total depreciable assets 26,495,802 43,808 - 26,539,610 Less Accumulated Depreciation:
Buildings (882,913) (125,456) - (1,008,369)
Improvements (8,370,755) (417,540) - (8,788,295)
Equipment (613,785) (16,532) - (630,317)
Total accumulated depreciation (9,867,453) (559,528) - (10,426,981) Total depreciable assets, net 16,628,349 (515,720) - 16,112,629 Total capital assets, net $ 16,740,055 $ (515,720) $ - $ 16,224,335 62 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 5: City Employees Retirement Plan - Pension Plans
a. General Information about the Pension Plans
The following is a summary of net pension liabilities and deferred outflow/inflow of resources by plan at June 30, 2025:
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefits tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68.
Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors nine rate plans (three miscellaneous and six safety). Benefit provisions under the Plan are established by State statue and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
The net pension liabilities will be liquidated from the General Fund and Sanitation Fund.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after ten years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
Miscellaneous
Plan Safety Plan Total
Net Pension Liabilities $ 7,817,417 $ 12,973,855 $ 20,791,272 Deferred Outflow of Resources 2,507,951 3,880,030 6,387,981 Deferred Inflows of Resources 137,356 260,732 398,088
Pension Expense (Income) 1,520,916 2,532,982 4,053,898
63 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 5: City Employees Retirement Plan - Pension Plans (Continued) Below is a summary of the plans’ provisions and benefits in effect at June 30, 2025, for which the City has contracted:
Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate.
The total plan contributions are determined through the CalPERS’ annual actuarial valuation process. For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
For the year ended June 30, 2025, the contributions recognized as a reduction to the net pension liability was $2,307,514.
b. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2025, the City of Solana Beach reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows:
Proportionate Share of
Net Pension Liability
Miscellaneous $ 7,817,417
Safety 12,973,855
Total $ 20,791,272
Miscellaneous Miscellaneous Safety Fire Safety Fire Safety Fire Safety Lifeguard Safety Lifeguard PEPRA Other Major Benefit Options Miscellaneous* Second Tier PEPRA First Tier* Second Tier PEPRA First Tier* Second Tier* Safety Prior to January 1, 2010 On or after Prior to January 1, 2010 On or after Prior to January 1, 2010 On or after Hire Date January 1, 2010 but prior to January 1, 2013 January 1, 2010 but prior to January 1, 2013 January 1, 2010 but prior to January 1, 2013 January 1, 2013 January 1, 2013 January 1, 2013
Benefit Provision 2.5% @ 55 2.0% @ 60 2.% @ 62 3.0% @ 50 2.0% @ 50 2.7% @ 57 3.0% @ 50 2.0% @ 50 2.7% @ 57 Benefit Formula
Social Security No No No No No No No No No
Full/Modified Full Full Full Full Full Full Full Full Full Benefit Vesting Schedule 5 Years Service 5 Years Service 5 Years Service 5 Years Service 5 Years Service 5 Years Service 5 Years Service 5 Years Service 5 Years Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Monthly for Life Monthly for Life Monthly for Life Monthly for Life Monthly for Life Monthly for Life Retirement Age 50 - 63 50 - 63 52 - 67; 50 50 - 55 50 - 57 50 - 55 50 - 55 52 - 67 . Percentage of 1.426% to 1.092% to
Eligible Compensation 2.418% 2.418% 1.0% to 2.5% 3.0% 2.0% to 2.7% 2.0% to 2.7% 1.423% to 2.0% 1.423% to 2.0% 2.0% to 2.7% Required Employer
Contribution Rates 14.13% 10.15 7.87% 27.32% 20.09% 13.76% 27.32% 20.09% 13.76% Required Employee
Contribution Rates 7.96% 6.93% 7.75% 8.99% 8.96% 13.75% 8.99% 8.96% 13.75% * Closed to new member entrants.
64 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 5: City Employees Retirement Plan - Pension Plans (Continued) The net pension liability of each of the Plans is measured as of June 30, 2024, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.
The City’s proportionate share of the net pension liability for each Plan measured as of June 30, 2023 and 2024, respectively, was as follows:
For the year ended June 30, 2025, the City recognized pension expense as follows:
At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Miscellaneous Safety Combined
Proportion - June 30, 2024 0.15726% 0.17562% 0.16825%
Proportion - June 30, 2025 0.16163% 0.17795% 0.17144%
Change 0.00437% 0.00233% 0.00319%
Miscellaneous Safety Total Plans
$ 1,520,916 $ 2,532,982 $ 4,053,898
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $ 1,083,671 $ - Changes of assumptions 200,924 -
Difference between expected and actual experience 675,887 26,373 Net difference between projected and actual earnings on plan investments 450,039 -
Differences between actual contributions and the
proportionate share of contributions 63,454 49,155
Change in employer's proportion 33,976 61,828
Total Miscellaneous Plan 2,507,951 137,356
Safety Plan
Pension contributions subsequent to measurement date 1,526,383 - Changes in assumptions 319,649 -
Difference between expected and actual experience 1,058,782 34,425 Net difference between projected and actual earnings on plan investments 627,097 -
Differences between actual contributions and the
proportionate share of contributions 250,165 124,227
Change in employer's proportion 97,954 102,079
Total Safety Plan 3,880,030 260,731
Total All Plans $ 6,387,981 $ 398,087
Miscellaneous Plan
65 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 5: City Employees Retirement Plan - Pension Plans (Continued) The $2,610,054 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
c. Actuarial Methods and Assumptions
Actuarial Assumptions
For the measurement period ended June 30, 2024 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2023 total pension liability.
The June 30, 2023, total pension liabilities were based on the following actuarial methods and assumptions:
Fiscal
Year Ended Miscellaneous Safety
June 30, Plan Plan Total
2026 $ 399,670 $ 796,465 $ 1,196,135
2027 1,022,626 1,503,512 2,526,138
2028 18,853 7,502 26,355
2029 (154,225) (214,563) (368,788)
$ 1,286,924 $ 2,092,916 $ 3,379,840
Deferred Outflows/(Inflows) of Resources
Actuarial Cost Method Entry Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by entry age and service
Mortality Rate Table (1) Derived using CalPERS Membership Data for all funds
Post Retirement Benefit Contract COLA up to 2.30% until Purchasing Increase Power Protection Allowance Floor on
Purchasing Power applies, 2.30% thereafter
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website. 66 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 5: City Employees Retirement Plan - Pension Plans (Continued) Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.
The expected real rates of return by asset class are as follows:
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability of the Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1% point lower (5.90 percent) or 1% point higher (7.90 percent) than the current rate:
Assumed Asset
Asset Class1
Allocation Real Return1,2
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-Cap-weighted 12.00 3.84
Private Equity 13.00 7.28
Treasury 5.00 0.27
Mortgage-backed Securities 5.00 0.50
Investment Grade Corporates 10.00 1.56
High Yield 5.00 2.27
Emerging Market Debt 5.00 2.48
Private Debt 5.00 3.57
Real Assets 15.00 3.21
Leverage (5.00) (0.59)
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management Study.
Discount Rate - 1% Current Discount Rate Discount Rate + 1% Plan Type 5.90% 6.90% 7.90%
Miscellaneous $ 11,940,498 $ 7,817,417 $ 4,423,514
Safety 18,927,826 12,973,855 8,104,343
Total $ 30,868,324 $ 20,791,272 $ 12,527,857
67 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 5: City Employees Retirement Plan - Pension Plans (Continued) d. Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information.
Note 6: Other Post-Employment Benefits
a. Plan Description
The City of Solana Beach Retiree Healthcare Plan (“Plan”) is a single employer defined benefit healthcare plan administered by the City. The Plan provides healthcare benefits to eligible retirees and their dependents through the California Public Employees’ Retirement System healthcare program (PEMHCA). Benefit provisions are established and may be amended through agreements and memorandums of understanding between the City, its non-represented employees and the unions representing City employees. The Retiree Healthcare Plan does not issue a financial report.
The net OPEB liability will be liquidated from the General Fund and Sanitation Fund.
The City provides the PEMHCA minimum benefit ($158 per month for 2025) but no less than $325 per month for employees retired before January 1, 2007 and $290 per month for employees hired before January 1, 2007.
b. Plan Membership
At June 30, 2025, the measurement date, the following numbers of participants were covered by the benefit terms:
c. Contributions
The contribution requirements of the Plan participants and the City are established by and may be amended by the City pursuant to agreements with its non-represented employees and the unions representing City Employees. The City pays cash and implied subsidy benefit payments and PEMHCA administrative fees directly from City assets. Contributions made to the trust are on an ad-hoc basis. On average over the past five years, 1.8 percent of payroll was contributed to the trust each year.
The City contributed $577,889 during the 2025 fiscal year which consisted of $175,539 of pay-as-you-go benefit payments, $337,242 in contributions to the trust, $713 in non-trust administration expenses, and $64,395 in implied subsidy benefits. Retired plan members and their beneficiaries pay the annual premium cost not paid by the employer.
Inactive plan members or beneficiaries currently receiving benefit payments 49 Inactive plan members entitled to but not yet receiving benefit payments 17 Active plan members 71
137
68 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 6: Other Post-Employment Benefits (Continued)
d. Net OPEB Liability of the City
The City’s net OPEB liability was measured as of June 30, 2025, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023 that was rolled forward to determine the June 30, 2025 total OPEB liability, based on the following actuarial methods and assumptions:
e. Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of June 30, 2023, using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Actuarial Valuation Date June 30, 2023
Contribution Policy City contributes full ADC
Discount Rate and Long-Term
Expected Rate of Return on Assets
5.50% at June 30, 2025; Expected City
contributions projected to keep sufficient plan
assets to pay all benefits from trust
General Inflation 2.50% annually
Mortality, Retirement, Disability,
Termination
CalPERS 2000-2019 Experience Study
Mortality Improvement Mortality projected fully generational with Scale MP-2021
Salary Increases Aggregate – 2.75% annually; Merit –
CalPERS 2000-2019 Experience Study
Medical Trend Non-Medicare – 8.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076; Medicare
(Non-Kaiser) – 7.50% for 2025, decreasing to
an ultimate rate of 3.45% in 2076; Medicare
(Kaiser) – 6.25% for 2025, decreasing to an
ultimate rate of 3.45% in 2076
PEMHCA Minimum Increases 3.50% annually
Cap Increases No increases on $325 and $290 benefit
Healthcare Participation for Future
Retirees
Actives & Surviving Spouses Hired < 1/1/07
Covered – 90%; Waived – 70%. Actives &
Surviving Spouses Hired > 1/1/07 Covered –
60%; Waived – 50%. Retirees & Surviving
Spouses Covered 100%; Waived < 65 – 20%
at 65; Waived > 65 – 0%
June 30, 2025 June 30, 2024
Total OPEB Liability (TOL) $ 3,464,524 $ 3,413,755
Fiduciary Net Position (FNP) 2,223,999 1,709,751
Net OPEB Liability (NOL) $ 1,240,525 $ 1,704,004
Funded Status (FNP/TOL) 64.2% 50.1%
Fiscal Year Ending
69 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 6: Other Post-Employment Benefits (Continued)
f. Changes in the Net OPEB Liability
g. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate Sensitivity of the net OPEB liability to changes in the discount rate. The following presents the net OPEB liability of the City, as wells as what the City’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current discount rate:
h. Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates. The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:
Total OPEB Fiduciary Net Net OPEB
Liability Position Liability
Balance at June 30, 2024 $ 3,413,755 $ 1,709,751 $ 1,704,004 Changes for the year:
Service cost 103,833 - 103,833
Interest 186,870 - 186,870
Assumption changes - - -
Actual vs. expected experience - - -
Contributions - employer - 577,889 (577,889)
Net investment income - 182,858 (182,858)
Benefit payments* (239,934) (239,934) -
Administrative expenses - (6,565) 6,565
Net changes 50,769 514,248 (463,479)
Balance at June 30, 2025 $ 3,464,524 $ 2,223,999 $ 1,240,525 1% Decrease Current Rate 1% Increase
(4.50%) (5.50%) (6.50%)
Net OPEB Liability $ 1,678,064 $ 1,240,525 $ 878,098
1% Decrease Current Trend 1% Increase
Net OPEB Liability $ 937,266 $ 1,240,525 $ 1,676,453
70 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 6: Other Post-Employment Benefits (Continued)
i. OPEB Plan Fiduciary Net Position
The plan fiduciary net position is reported in the OPEB Trust Fund included in the City’s Statement of Fiduciary Net Position.
j. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2025, the City recognized OPEB expense of $16,922.
As of fiscal year ended June 30, 2025, the City reported deferred outflows of resources related to OPEB from the following sources:
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as expense as follows:
Note 7: Commitments and Contingencies
a. Litigation
The City is a defendant in certain legal actions arising in the normal course of operations.
The accompanying basic financial statements reflect a liability for the probable amounts of loss associated with these claims.
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual experience $ - $ 173,830
Changes in assumptions 5,261 155,566
Net difference between projected and
actual earnings on plan investments - 68,145
Total $ 5,261 $ 397,541
Fiscal Year Ended Outflows/(Inflows)
June 30, of Resources
2026 $ (90,982)
2027 (83,774)
2028 (78,629)
2029 (58,721)
2030 (42,197)
Thereafter (37,977)
Total $ (392,280)
71 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 7: Commitments and Contingencies (Continued)
b. Construction Commitments
The following material construction commitments existed at June 30, 2025:
c. Sales Tax – TransNet Debt Commitment
On November 10, 2010, Solana Beach executed an agreement with The San Diego Association of Governments (SANDAG) relating to the 2010 Series A Bonds Build American Bonds (BABs) for the completion of several projects including the Highway 101 streetscape and traffic calming project and other eligible projects. In the agreement, SANDAG withholds one-sixth of the interest due each month when Sales Tax is sent from the Board of Equalization (BOE) in an effort to have the full amount with the Trustee by the 1 st of April and 1st of October.
Note 8: Risk Management
a. General Liability Insurance
Public Risk Innovation, Solutions, and Management (PRISM), formerly known as CSAC – Excess Insurance Authority, is a member-directed risk sharing pool of counties and public entities. With the dissolution of SANDPIPA, the City elected to join the PRISM pool as a new member and procured all lines of insurance coverage for the City. PRISM is ranked as the second largest public entity risk pool and the largest property and casualty pool in the nation.
The City has a Self-Insured Retention (SIR) of $100,000 per claim and additional coverage above its SIR with PRISM to $5 million per claim; there is an additional $45 million of reinsurance above PRISM coverage bringing the total coverage to over $50 million per claim.
b. Workers’ Compensation
Beginning October 1, 2004, the City became fully self-insured with respect to Workers’ Compensation. The City has an SIR of $125,000 per claim and additional coverage above its SIR with PRISM to $5 million per claim; there is an additional $45 million of reinsurance above PRISM coverage bringing the total coverage to over $50 million per claim, up to the statutory workers’ compensation limits set by the State of California.
Remaining
Project Name Contract Amount
FY23 Sewer & Storm Drain Rehab $ 177,360
FY24 Sewer & Storm Drain Rehab 619,044
Traffic Signal Improvement Project 28,549
72 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 8: Risk Management (Continued)
The workers’ compensation and general liability claims payable of $872,000 reported at June 30, 2025, includes all claims for which information prior to the issuance of the financial statements indicates that it was probable that a liability had been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. During the past three fiscal (claims) years none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage in the prior year. Changes in the claims liability amounts were as follows:
The City also maintains insurance coverage in the following specific areas: real and personal property damage, special events, cyber liability, pollution, and master crime.
Note 9: Long-Term Liabilities
a. Changes in Long-term Liabilities
The following is a summary of changes in long-term debt for the year ended June 30, 2025:
Beginning of Current Year Claims Balance at
Fiscal Year and Changes in Claim Fiscal Year
Liability Estimates Payments End
2023 - 2024 $ 838,000 $ - $ (57,985) $ 780,015
2024 - 2025 780,015 91,985 - 872,000
Balance Balance Amount
Beginning End Due Within
of Year Additions Deletions of Year One Year
Governmental Activities:
Bonds Payable
Limited Tax Bonds, Series 2010A $ 5,500,000 $ - $ - $ 5,500,000 $ - Total Bonds Payable 5,500,000 - - 5,500,000 -
Loan Payable 230,155 - 62,971 167,184 65,163
Compensated Absences* 812,752 426,360 - 1,239,112 650,023 Claims (Note 8) 780,015 91,985 - 872,000 233,000
Total Governmental Activities $ 7,322,922 $ 518,345 $ 62,971 $ 7,778,296 $ 948,186 Business-Type Activities:
Bonds Payable
2017 Wastewater Revenue Refunding Bonds $ 4,895,000 $ - $ 330,000 $ 4,565,000 $ 340,000 Premium 306,656 - 25,555 281,101 25,555
Total Bonds Payable 5,201,656 - 355,555 4,846,101 365,555 Direct Borrowings and Direct Placements
San Elijo JPA Loan Payable - 2017 9,902,500 - 255,000 9,647,500 267,500 Total Direct Borrowings and Direct Placements 9,902,500 - 255,000 9,647,500 267,500 Compensated Absences* 71,062 41,314 - 112,376 25,312
Total Business-Type Activities $ 15,175,218 $ 41,314 $ 610,555 $ 14,605,977 $ 658,367 * Compensated Absences as of June 30, 2024 was restated as a result of the implementation of Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences. The change in the compensated absences liability is presented as a net change under GASB 101. 73 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 9: Long-Term Liabilities (Continued)
b. Governmental Activities
Bonds Payable
San Diego County Regional Transportation Commission Sales Tax Revenue Bonds On October 28, 2010, the San Diego Association of Governments (SANDAG), acting as the San Diego County Regional Transportation Commission, issued $338,960,000 Taxable Build America Bonds 2010 Series A (Limited Tax Bonds). SANDAG is responsible for the administration of programs under the TransNet Extension ordinance, Proposition A, which sets forth the permitted uses for revenues from a half cent transaction and use tax in San Diego County (TransNet Extension Program). In fiscal year ended June 2010, the City borrowed $5,500,000 from the TransNet debt financing program for the Highway 101 Streetscaping/Traffic Calming Project and other projects eligible under the terms of the debt financing and applicable SANDAG policies and approved projects. 2017 Wastewater Revenue Refunding Bonds. The bond is wholly secured by sales tax revenues pledged for the payment of debt service. In the event of default, all sales tax revenues pledged for the payment of the debt must be transferred to the bond trustee; however, there is no acceleration of payment on outstanding debt service. The total amount of the bond outstanding at June 30, 2025, is $5,500,000.
The future principal and interest payments as of June 30, 2025, were as follows:
Loan Payable
Energy Efficiency/Conservation Upgrades
On May 9, 2012, the City entered into a loan financing agreement with Municipal Finance Corporation for various energy efficiency/conservation upgrades at City facilities. The loan was executed in the amount of $818,696. Payments are due in thirty-one semi-annual payments of $35,187 and include interest at the rate of 3.45%. The City also executed an acquisition fund agreement with Deutsche Bank National Trust Company for distribution of the funds. At June 30, 2025, the balance of the loan liability was $167,184.
Year Ending June 30, Principal Interest
2026 $ - $ 325,105
2027 - 325,105
2028 - 325,105
2029 - 325,105
2030 - 325,105
2031 - 2035 - 1,625,525
2036 - 2040 940,800 1,598,247
2041 - 2045 2,686,956 1,041,849
2046 - 2048 1,872,244 224,152
Total $ 5,500,000 $ 6,115,298
Bonds Payable
74 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 9: Long-Term Liabilities (Continued)
b. Governmental Activities (Continued)
The future principal and interest payments as of June 30, 2025, were as follows:
c. Business Type Activities
2017 Wastewater Revenue Refunding Bonds
On August 1, 2017, the City, issued $6,865,000 of 2017 Wastewater Revenue Refunding Bonds to refund, on a current basis, the outstanding Solana Beach Public Financing Authority Subordinate Wastewater Revenue Bonds, Series 2006, which were issued to finance the improvement, betterment, renovation, and expansion of certain facilities within the City’s municipal wastewater enterprise. These bonds have a 19-year maturity with principal payments ranging from $210,000 to $485,000 with the final maturity paid on March 1, 2036. Interest on the bonds is payable semi-annually March 1 and September 1 commencing on March 1, 2018. Interest rates range from 4.00% to 4.375%. Failure by the City to make debt service payments on the Bonds constitutes an event of default under the Indenture and the Trustee is permitted to pursue remedies at law or in equity to enforce the City’s obligation to make such payments. Although the Trustee has the right to accelerate the total unpaid principal amount of the debt service payments on the Bonds, there is no assurance that the City would have sufficient funds to pay the accelerated amounts.
The Bonds are paid solely from, and secured by a pledge of, installment payments and moneys in the funds and account held under the indenture. The installment payments are special limited obligations of the City payable solely from and secured by a pledge of and first lien on residual net revenues of the Wastewater System. Residual net revenues consist of revenues derived from the Wastewater System and remaining after the payment of operating and maintenance expense and debt service on the JPA Loan Payable. The loan amount outstanding at June 30, 2025, is $4,565,000.
The future principal and interest payments as of June 30, 2025, were as follows:
Year Ending June 30, Principal Interest
2026 $ 65,163 $ 5,211
2027 67,431 2,943
2028 34,590 597
Total $ 167,184 $ 8,751
Year Ending June 30, Principal Interest
2026 $ 340,000 $ 164,106
2027 350,000 153,906
2028 370,000 136,406
2029 380,000 121,606
2030 400,000 102,606
2031 - 2035 2,240,000 287,663
2036 485,000 15,157
Total $ 4,565,000 $ 981,450
Bonds Payable
75 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 9: Long-Term Liabilities (Continued)
c. Business Type Activities (Continued)
San Elijo JPA Loan Payable - 2017
On June 1, 2017, the San Elijo Joint Powers Authority issued the 2017 Revenue Bonds for the purpose of funding facilities and improvements as part of the Authority’s capital improvement plan. Each local agency entered into a “Series 2017 Loan Agreement” on June 1, 2017 to assist in the financing of the Local Agencies’ respective share of the Bonds.
The City of Encinitas and the City of Solana Beach will each be paying 50 percent of total debt service on the bonds, respectively. In the event of default, the trustee may accelerate the payment of outstanding principal and interest. The loan is wholly secured by revenues pledged for the payment of the loan. The loan matures on March 1, 2047. The interest rates on the bonds range from 3.00% to 5.00% per year. The City of Solana Beach’s portion of annual principal installments range from $217,500 to $642,500. The total amount of the bond outstanding at June 30, 2025, is $9,647,500.
The future principal and interest payments as of June 30, 2025, were as follows:
Compensated Absences
Compensated absences do not have a fixed repayment schedule and become payable when leave is used by employees. Governmental activities’ compensated absences are typically liquidated through the General Fund, and business-type activities’ compensated absences are liquidated through the Sanitation Fund.
Year Ending June 30, Principal Interest
2026 $ 267,500 $ 401,538
2027 280,000 388,163
2028 295,000 374,163
2029 310,000 359,413
2030 325,000 343,913
2031 - 2035 1,867,500 1,474,815
2036 - 2040 2,290,000 1,052,058
2041 - 2045 2,752,500 591,100
2046 - 2047 1,260,000 76,100
Total $ 9,647,500 $ 5,061,263
Direct Borrowings
76 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 10: Debt Covenant Compliance for JPA Loans
In Compliance with bond issuance covenants, specifically, the 2017 San Elijo JPA Bonds, the City is including this table showing debt service coverage for the fiscal year of at least
1.30 times (i) the loan installments coming due and payable during the fiscal year, (ii) all payments required with respect to parity debt, and (iii) amount required to replenish the Reserve Fund as required by the indenture. The City covenants under the 2017 Wastewater Revenue Refunding Bond agreement require while the Bonds remain outstanding and to the extent permitted by law, the City will fix, prescribe, and collect rates and charges which will be at least sufficient to yield during each fiscal year Residual Net Revenues equal to one hundred thirty percent (130%) of Debt Service. The debt coverage ratios for the 2017 San Elijo JPA Loans Payable and the 2017 Wastewater Revenue Refunding Bonds are calculated as follows:
Revenues:
Operating revenues $ 5,726,131
Other operating 108,507
Non-operating 601,863
Gross revenues 6,436,501
Expenses 5,287,758
Net Income 1,148,743
Add Back:
Interest expense 555,189
Depreciation 559,528
Subtotal 1,114,717
Net Revenues Available for Debt Service $ 2,263,460
2017 JPA Loan Debt Service:
Principal repayment $ 255,000
Interest charges 414,288
Subtotal 669,288
2017 Wastewater Revenue Refunding Bonds Debt Service:
Principal repayment 330,000
Interest charges 174,006
Subtotal 504,006
$ 1,173,294
Coverage Ratio 1.93
77 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 11: Classification of Fund Balances
The City has adopted the provisions of GASB Statement No. 54 Fund Balance and Governmental Fund Type Definitions. GASB 54 establishes Fund Balance classifications based largely upon the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The Governmental Fund statements conform to this new classification.
Other Total
Governmental Governmental
General City CIP Funds Funds
Nonspendable:
Inventories $ - $ - $ 63,200 $ 63,200
Prepaid Costs 1,808,044 - - 1,808,044
Total Nonspendable 1,808,044 - 63,200 1,871,244
Restricted:
Section 115 Pension Stabilization Trust 8,473,683 - - 8,473,683 TransNet - - 353,063 353,063
Gas Tax - - 897,266 897,266
Municipal Improvement Districts - - 863,392 863,392
Lighting District - - 3,851,483 3,851,483
COPS - - 333,830 333,830
Public Safety - - 873,484 873,484
Fire Mitigation - - 54,066 54,066
Coastal Area Business/Visitor Assistance & Enhancement - - 1,508,394 1,508,394 Miscellaneous Grants - - 125,600 125,600
Housing - - 1,567,433 1,567,433
SB1 Streets & Roads - - 537,562 537,562
Capital Projects - 12,699,905 92,555 12,792,460
Sand Replenishment - - 1,772,370 1,772,370
Debt Service - - 24,916 24,916
Total Restricted 8,473,683 12,699,905 12,855,414 34,029,002 Committed:
Parks & Recreation 45,554 - - 45,554
Public Facilities 860,433 - - 860,433
Other Post-Employment Benefits 239,590 - - 239,590
Total Committed 1,145,577 - - 1,145,577
Assigned:
Housing 1,600,286 - - 1,600,286
Community TV 80,561 - - 80,561
Street Sweeping 112,661 - - 112,661
Park Fees 44,518 - - 44,518
Asset Replacement 5,289,184 - - 5,289,184
Self-Insurance 198,401 - - 198,401
Workers' Compensation 724,955 - - 724,955
Public Facilities 1,538,172 - - 1,538,172
Lomas Santa Fe Median 68,500 - - 68,500
ADA (DAE Fee) 21,548 - - 21,548
Container Recycle 3,304 - - 3,304
Sand - Fletcher Cove 11,767 - - 11,767
Sand - Tide Park 3,555 - - 3,555
Beach Related 23,800 - - 23,800
Total Assigned 9,721,212 - - 9,721,212
Unassigned 13,096,685 - (186,252) 12,910,433
Total Fund Balance $ 34,245,201 $ 12,699,905 $ 12,732,362 $ 59,677,468 Classification
78 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 11: Classification of Fund Balances (Continued)
a. Net investment in capital assets
The detail of net investment in capital assets for the year ended June 30, 2025 is as follows:
Note 12: Interfund Transactions
a. Due From and To Other Funds
At June 30, 2025, the City had the following short-term interfund receivables and payables:
Due from/to other funds balances arise from the short-term borrowing made from the City’s General Fund to various other funds to cover cash shortages during the year. b. Interfund Transfers
For the year ended June 30, 2025, the City had the following transfers:
Business-Type
Activities
Governmental Sanitation
Activities Fund
Capital assets, net of
accumulated depreciation $ 43,084,610 $ 16,224,335
Less:
Bonds, notes and finance
purchase agreements (5,667,184) (4,565,000)
Unamortized premiums/(discounts) - (281,101)
Net investment in capital assets $ 37,417,426 $ 11,378,234 Due to Other Funds Due From Other Funds
Governmental Funds:
General Fund $ - $ 100,660
CDBG 15,511 -
Camp Programs 85,149 -
Total $ 100,660 $ 100,660
Non-Major
General City CIP Governmental Solana Energy
Transfers Out Fund Fund Funds Alliance Fund Totals
General Fund $ 1,004,938 $ 2,405,062 $ - $ 289,054 $ 3,699,054 Non-Major Governmental Funds - 86,126 70,375 - 156,501
Total $ 1,004,938 $ 2,491,188 $ 70,375 $ 289,054 $ 3,855,555 Transfers In
79 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 12: Interfund Transactions (Continued)
Transfer was made from the Measure S Fund to the City CIP Fund to provide resources for debt service payments. Transfer was made from the General Fund to the Solana Energy Alliance Fund for the purpose of covering expenses related to the closing of the fund in FY25.
c. Advances to, Advances from other funds
On July 11, 2018, the City Council adopted Resolution 2018-069 approving the purchase and sale agreement for 700 Stevens Avenue (“Property”) for $2.8 million; establishing an internal General Fund service fund named “Real Property Acquisition” to receive funds from the Sanitation fund to pay for the acquisition of the Property; and authorizing the transfer of $2.8 million from the Sanitation Fund to the Real Property Acquisition fund as a loan payable to the Sanitation fund at an annual interest rate of 2.78% for seven years with annual payments equal to $445,699.
The City is a built-out coastal community and availability of vacant land is scarce. The Property is three parcels of vacant land totaling approximately 28,978 square feet and is located immediately north of and adjacent to La Colonia Park. The purchase of the Property offered the City an opportunity to expand the existing open space, recreation and park use in the future.
The City has the ability to make this kind of transfer from one fund to another so long as there is no prohibition on the use of the funds. In this case, the Sanitation funds are not specifically prohibited for other uses (except for connection fees, which cannot be used for any other purpose). See Health & Safety Code §§ 5473 et seq.
The City elected to borrow funds from its Sanitation Fund to pay for the purchase of the Property. Repayment to the Sanitation Fund will be as follows:
Year Ending
June 30, Principal Interest Total
2026 $ 433,644 $ 12,055 $ 445,699
Total $ 433,644 $ 12,055 $ 445,699
80 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 13: Investment in Joint Venture
On June 17, 1987, the Cardiff Sanitation District and the City of Solana Beach established the San Elijo Joint Powers Authority (SEJPA), a separate legal entity, whose function is to manage, operate, maintain, and expand a plant for the treatment and disposal of sewage or wastewater and to determine the joint and separate obligations of the members concerning the transmission, treatment, disposal and reclamation of sewage and wastewater within the respective service territories. The SEJPA's governing board consists of two members from each entity. The City of Solana Beach's investment in the SEJPA has been recorded using the equity method of accounting and is shown as an investment in joint venture in the City's financial statements. Summarized audited information of the SEJPA for the fiscal year ended June 30, 2025, is as follows:
Prior to the formation of the San Elijo Joint Powers Authority, the Cardiff Sanitation District and the City of Solana Beach operated the San Elijo water pollution control facility under an agreement whereby operating costs were shared based on usage and capital expansions were funded 56% by Cardiff and 44% by Solana Beach. Upon formation of the SEJPA in June 1987 the members continued funding SEJPA activities in this manner until May 1989, when the equity interests in the joint venture were revised to 50% Cardiff and 50% Solana Beach. To effect the change in equity interests, the City of Solana Beach agreed to pay Cardiff Sanitation District $750,680, which included a premium on the value of the equity interest in the amount of $437,782. This premium is being amortized over the estimated useful life of the facility of forty years.
A summary of the changes in the City's investment in the San Elijo Joint Powers Authority for the year ended June 30, 2025, is as follows:
The financial statements of the SEJPA can be obtained from the Solana Beach Finance Department located at Solana Beach City Hall, 635 S. Highway 101, Solana Beach, California 92075.
Operating revenues $ 11,947,167
Operating expenses (13,558,626)
Net non-operating income 2,624,143
Capital contributions 1,579,158
Transfer out (2,193,888)
Change in net position $ 397,954
Total assets and deferred outflows of resources $ 118,473,242 Total liabilities and deferred inflows of resources (42,487,623) Net position - total fund equity $ 75,985,619
Investment at June 30, 2024 $ 36,743,833
Capital contribution 630,579
Current year share in the joint venture net income (loss) 452,842 Investment at June 30, 2025 $ 37,827,254
81 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 14: Non-City Obligations – Special Assessment Debt Bonds issued to finance public improvement projects in certain assessment districts are liabilities of the property owners and are secured by liens against the assessed property. The City acts as an agent for collection of principal and interest payments by the property owners and remittance of such monies to the bondholders.
The City has no obligation or duty to pay any delinquency out of any available funds of the City.
Neither the faith, credit, nor the taxing power of the City is pledged to the payment of the bonds.
Therefore, none of the following obligations are included in the accompanying basic financial statements.
a. Undergrounding Districts
During July 2006, the Solana Beach Public Financing Authority issued Assessment District Revenue Bonds totaling $2,112,000 (less bond issuance costs of $244,393) to finance the undergrounding of utility lines for the Barbara/Granados Avenue Utility Undergrounding District and the Pacific Avenue/East and West Circle Drive Utility Underground Assessment District. In July 2008, the City of Solana Beach issued $480,000 (less bond issuance costs of $87,775) to finance the undergrounding of utility lines on Marsolan Avenue. The outstanding bonds as of June 30, 2025, were $1,507,296. b. South Solana Sewer District
In November 2006, the Solana Beach Public Financing Authority issued Limited Obligation Improvement Bonds totaling $570,000 (less bond issuance costs of $5,742) to finance the construction of sewer improvements to connect 51 properties of the South Solana Beach Sewer District assessment district to the City’s sewer system. The outstanding bonds as of June 30, 2025, were $330,000.
Note 15: Successor Agency Trust for Assets of Former Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Solana Beach that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations, or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).
Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City. 82 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 15: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) a. Long-Term Debt
The following debt was transferred from the Redevelopment Agency to the Successor Agency as of February 1, 2012, as a result of the dissolution. A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2025, follows:
2017 Tax Allocation Refunding Bonds
On November 10, 2017, the Agency issued the 2017 Tax Allocation Bonds to be used for the purpose of providing funds to the Successor Agency to refund, on a current basis, the Solana Beach Redevelopment Agency, Solana Beach Redevelopment Project, Tax Allocation Bonds, Series and pay the costs of issuing the Bonds. These bonds have an 18-year maturity with the final maturity paid on December 1, 2035 and interest rate of
3.360% Interest on the bonds is payable semi-annually on June 1 and December 1, concluding on December 1, 2035.
The annual debt service requirements are as follows:
Year Ending June 30, Principal Interest Total
2026 $ 142,700 $ 58,098 $ 200,798
2027 147,700 53,263 200,963
2028 152,500 48,260 200,760
2029 157,800 43,092 200,892
2030 163,100 37,746 200,846
2031 - 2035 902,400 101,984 1,004,384
2036 98,000 1,646 99,646
Total $ 1,764,200 $ 344,089 $ 2,108,289
Balance Balance Due Within
June 30, 2024 Additions Deletions June 30, 2025 One Year $ 1,902,400 $ - $ 138,200 $ 1,764,200 $ 142,700
83 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2025
Note 15: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) Pledged Revenue
The City pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low- and ModerateIncome Housing set-aside and pass-through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish Low- and ModerateIncome Housing projects and to defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total principal and interest remaining on the debt is $2,108,289 with annual debt service requirements as indicated on the previous page. For the current year, the total property tax revenue recognized by the City for the payment of indebtedness incurred by the dissolved redevelopment agency was $224,799 and the debt service obligation on the bonds was $200,798. b. Insurance
The Successor Agency is covered under the City of Solana Beach’s insurance policies.
Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be found in Note 8.
Note 16: Restatement
During the year ended June 30, 2025, the City adopted new accounting guidance by implementing the provisions of GASB 101. As a result of this implementation, additional compensated absences resulted from the addition of payroll-related taxes and benefits associated with the accrued leave. The following summarizes the net effects on beginning net position:
Business-Type
Governmental Activities/
Description Activities Sanitation Fund Total
Net Position - Beginning, as Previously Reported $ 72,648,765 $ 49,587,911 $ 122,236,676 Adoption of GASB 101 (186,536) (7,277) (193,813)
Net Position - Beginning, as restated $ 72,462,229 $ 49,580,634 $ 122,042,863 84 Item L.2
REQUIRED SUPPLEMENTARY INFORMATION
85 Item L.2
THIS PAGE INTENTIONALLY LEFT BLANK
86 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, 2024 $ 28,349,784 $ 28,349,784 $ 28,349,784 $ - Resources (Inflows):
Taxes:
Property 10,477,382 11,122,382 11,437,246 314,864
Transient occupancy 1,954,383 2,604,383 2,228,071 (376,312) Sales 8,976,000 9,276,000 9,347,509 71,509
Franchise and other 3,708,750 3,848,750 4,098,935 250,185 Licenses and permits 622,350 817,350 829,423 12,073
Intergovernmental 99,850 169,850 238,183 68,333
Charges for services 829,000 829,000 1,180,352 351,352
Use of money and property 461,975 738,475 2,002,476 1,264,001 Fines and forfeitures 320,200 328,139 517,129 188,990
Other revenues 3,748,042 4,573,019 4,734,323 161,304
Amounts Available for Appropriations 59,547,716 62,657,132 64,963,431 2,306,299 Charges to Appropriations (Outflows):
General Government:
City Council 357,502 390,577 383,881 6,696
City Clerk 705,943 675,943 563,768 112,175
Legal Services 535,066 535,066 381,583 153,483
City Manager 695,974 743,753 635,872 107,881
Finance 1,357,998 2,615,143 2,507,750 107,393
Personnel 680,080 637,680 519,350 118,330
Information Systems 742,608 758,421 671,597 86,824
Support Services 2,054,130 2,045,800 1,962,687 83,113
Total General Government 7,129,301 8,402,383 7,626,488 775,895 Public Safety:
Marine safety 1,235,710 1,423,915 1,420,322 3,593
Law enforcement 4,962,454 4,977,454 4,977,452 2
Code & parking enforcement 306,105 340,950 315,783 25,167 Fire department 6,295,141 6,536,396 6,389,562 146,834
Animal regulation 94,000 98,236 94,366 3,870
Civil defense 34,750 37,380 36,344 1,036
Total Public Safety 12,928,160 13,414,331 13,233,829 180,502 Public Works:
Street and other 2,449,279 2,664,418 2,373,153 291,265
Engineering 657,419 805,485 697,128 108,357
Public Facilities 428,670 543,103 510,978 32,125
Total Public Works 3,535,368 4,013,006 3,581,259 431,747 Community Development:
Planning 1,075,067 1,198,032 1,032,961 165,071
Building services 548,808 698,808 658,245 40,563
Total Community Development 1,623,875 1,896,840 1,691,206 205,634 Community Services:
Community services 185,049 234,863 204,612 30,251
Recreation programs 692,141 787,031 773,093 13,938
Total Community Services 877,190 1,021,894 977,705 44,189 Capital Outlay 784,000 2,057,273 889,842 1,167,431
Interest Expense 23,785 23,785 23,785 -
Total Charges to Appropriations 26,901,679 30,829,512 28,024,114 2,805,398 Other Financing Sources (Uses):
Transfers in 1,046,400 4,938 4,938 -
Transfers out (1,046,400) (2,699,054) (2,699,054) -
Total Other Financing Sources (Uses) - (2,694,116) (2,694,116) - Budgetary Fund Balance, June 30, 2025 $ 32,646,037 $ 29,133,504 $ 34,245,201 $ 5,111,697 Budget Amounts
See Accompanying Notes to the Required Supplementary Information. 87 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
MISCELLANEOUS EMPLOYEES PENSION PLAN
LAST TEN FISCAL YEARS
JUNE 30, 2025
Measurement Date 2024 2023 2022 2021 2020
City of Solana Beach's Proportion
of the Net Pension Liability 0.16163% 0.15726% 0.15566% 0.06644% 0.05654% City of Solana Beach's Proportionate
Share of the Net Pension Liability $ 7,817,417 $ 7,863,579 $ 7,283,498 $ 3,593,385 $ 6,151,557 City of Solana Beach's Miscellaneous
Employees Plan Covered Payroll $ 5,470,650 $ 4,807,042 $ 3,483,076 $ 3,353,666 $ 3,312,829 City of Solana Beach's Proportionate
Share of the Net Pension Liability as a
Percentage of the Miscellaneous
Employees Plan Covered Payroll 142.90% 163.58% 209.11% 107.15% 185.69% Plan Fiduciary Net Position as a
Percentage of the Total Pension Liability 74.42% 72.59% 73.14% 88.29% 75.10% Measurement Date 2019 2018 2017 2016 2015
City of Solana Beach's Proportion
of the Net Pension Liability 0.05532% 0.05550% 0.05313% 0.05241% 0.05706% City of Solana Beach's Proportionate
Share of the Net Pension Liability $ 5,668,839 $ 5,177,151 $ 5,268,836 $ 4,534,940 $ 3,550,604 City of Solana Beach's Miscellaneous
Employees Plan Covered Payroll $ 3,058,602 $ 2,879,582 $ 2,721,499 $ 2,593,359 $ 2,409,776 City of Solana Beach's Proportionate
Share of the Net Pension Liability as a
Percentage of the Miscellaneous
Employees Plan Covered Payroll 185.34% 179.79% 193.60% 174.87% 147.34% Plan Fiduciary Net Position as a
Percentage of the Total Pension Liability 75.26% 75.26% 72.59% 75.87% 79.82% See Accompanying Notes to the Required Supplementary Information. 88 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
SCHEDULE OF EMPLOYER'S CONTRIBUTIONS
MISCELLANEOUS EMPLOYEES PENSION PLAN
LAST TEN FISCAL YEARS
JUNE 30, 2025
Fiscal Year 2025 2024 2023 2022 2021
Actuarially Determined Contribution $ 1,083,671 $ 940,970 $ 886,210 $ 768,847 $ 685,457 Contribution in Relation to the Actuarially
Determined Contribution 1,083,671 940,970 886,210 768,847 685,457 Contribution Excess (Deficiency) $ - $ - $ - $ - $ -
City of Solana Beach's Miscellaneous
Employees Plan Covered Payroll $ 5,915,589 $ 5,470,650 $ 4,807,042 $ 3,483,076 $ 3,353,666 Plan Fiduciary Net Position as a
Percentage of the Total Pension Liability 18.32% 17.20% 18.44% 22.07% 20.44% Fiscal Year 2020 2019 2018 2017 2016
Actuarially Determined Contribution $ 636,152 $ 541,582 $ 460,816 $ 417,318 $ 385,634 Contribution in Relation to the Actuarially
Determined Contribution 636,152 541,582 460,816 417,318 385,634 Contribution Excess (Deficiency) $ - $ - $ - $ - $ -
City of Solana Beach's Miscellaneous
Employees Plan Covered Payroll $ 3,312,829 $ 3,058,602 $ 2,879,582 $ 2,721,499 $ 2,593,359 Plan Fiduciary Net Position as a
Percentage of the Total Pension Liability 19.20% 17.71% 16.00% 15.33% 14.87% See Accompanying Notes to the Required Supplementary Information. 89 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
SAFETY EMPLOYEES PENSION PLAN
LAST TEN FISCAL YEARS
JUNE 30, 2025
Measurement Date 2024 2023 2022 2021 2020
City of Solana Beach's Proportion
of the Net Pension Liability 0.17795% 0.17562% 0.17683% 0.12686% 0.09655% City of Solana Beach's Proportionate
Share of the Net Pension Liability $ 12,973,855 $ 13,127,102 $ 12,151,239 $ 6,861,102 $ 10,505,198 Employees Plan Covered Payroll $ 3,888,044 $ 3,640,252 $ 2,258,877 $ 2,138,322 $ 2,389,544 City of Solana Beach's Proportionate
Share of the Net Pension Liability as a
Percentage of the Miscellaneous
Employees Plan Covered Payroll 333.69% 360.61% 537.93% 320.86% 439.63% Plan Fiduciary Net Position as a
Percentage of the Total Pension Liability 70.23% 68.70% 69.25% 88.29% 75.10% Measurement Date 2019 2018 2017 2016 2015
City of Solana Beach's Proportion
of the Net Pension Liability 0.09380% 0.09361% 0.08816% 0.08774% 0.09490% City of Solana Beach's Proportionate
Share of the Net Pension Liability $ 9,611,934 $ 8,884,523 $ 8,742,997 $ 7,592,101 $ 5,905,301 City of Solana Beach's Miscellaneous
Employees Plan Covered Payroll $ 2,270,208 $ 2,249,144 $ 2,115,191 $ 2,116,065 $ 1,997,991 City of Solana Beach's Proportionate
Share of the Net Pension Liability as a
Percentage of the Miscellaneous
Employees Plan Covered Payroll 423.39% 395.02% 413.34% 358.78% 295.56% Plan Fiduciary Net Position as a
Percentage of the Total Pension Liability 75.26% 75.26% 72.59% 75.87% 79.82% See Accompanying Notes to the Required Supplementary Information. 90 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
SCHEDULE OF EMPLOYER'S CONTRIBUTIONS
SAFETY EMPLOYEES PENSION PLAN
LAST TEN FISCAL YEARS
JUNE 30, 2025
Fiscal Year 2025 2024 2023 2022 2021
Actuarially Determined Contribution $ 1,526,383 $ 1,366,543 $ 1,309,122 $ 1,169,287 $ 1,045,632 Contribution in Relation to the Actuarially
Determined Contribution 1,526,383 1,366,543 1,309,122 1,169,287 1,045,632 Contribution Excess (Deficiency) $ - $ - $ - $ - $ -
City of Solana Beach's Miscellaneous
Employees Plan Covered Payroll $ 4,150,002 $ 3,888,044 $ 3,640,252 $ 2,258,877 $ 2,138,322 Plan Fiduciary Net Position as a
Percentage of the Total Pension Liability 36.78% 35.15% 35.96% 51.76% 48.90% Fiscal Year 2020 2019 2018 2017 2016
Actuarially Determined Contribution $ 988,753 $ 838,065 $ 717,659 $ 673,212 $ 619,022 Contribution in Relation to the Actuarially
Determined Contribution 988,753 838,065 717,659 673,212 619,022 Contribution Excess (Deficiency) $ - $ - $ - $ - $ -
City of Solana Beach's Miscellaneous
Employees Plan Covered Payroll $ 2,389,544 $ 2,270,208 $ 2,249,144 $ 2,115,191 $ 2,116,065 Plan Fiduciary Net Position as a
Percentage of the Total Pension Liability 41.38% 36.92% 31.91% 31.83% 29.25% See Accompanying Notes to the Required Supplementary Information. 91 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
RETIREE HEALTHCARE PLAN
LAST TEN FISCAL YEARS
JUNE 30, 2025
2025 2024 2023 2022 2021
TOTAL OPEB LIABILITY
Service cost $ 103,833 $ 119,498 $ 116,300 $ 118,609 $ 115,154 Interest 186,870 201,827 198,346 214,173 210,592
Actual vs. expected experience - (198,698) - (43,558) - Assumption changes - (134,658) - 11,837 -
Benefit payments (239,934) (248,605) (260,465) (263,592) (275,453) Net Changes 50,769 (260,636) 54,181 37,469 50,293
Total OPEB Liability - Beginning 3,413,755 3,674,391 3,620,210 3,582,741 3,532,448 Total OPEB Liability - Ending (a) $ 3,464,524 $ 3,413,755 $ 3,674,391 $ 3,620,210 $ 3,582,741
PLAN FIDUCIARY NET POSITION
Contributions - employer $ 577,889 $ 369,427 $ 398,228 $ 402,299 $ 480,132 Net investment income 182,858 160,626 95,935 (189,608) 210,366 Benefit payments (239,934) (248,605) (260,465) (263,592) (275,453) Administrative expenses (6,565) (5,411) (4,005) (3,959) (3,382) Other changes - - - - (1,390)
Net Changes 514,248 276,037 229,693 (54,860) 410,273
Plan Fiduciary Net Position - Beginning 1,709,751 1,433,714 1,204,021 1,258,881 848,608 Plan Fiduciary Net Position - Ending (b) $ 2,223,999 $ 1,709,751 $ 1,433,714 $ 1,204,021 $ 1,258,881 PLAN NET OPEB LIABILITY - ENDING (a) - (b) $ 1,240,525 $ 1,704,004 $ 2,240,677 $ 2,416,189 $ 2,323,860 Retiree Healthcare Plan Fiduciary Net Position
as a Percentage of the Plan Total OPEB Liability 64.19% 50.08% 39.02% 33.26% 35.14% City of Solana Beach's Retiree Healthcare Plan
Covered-Employee Payroll $ 9,350,067 $ 8,681,872 $ 7,935,037 $ 8,681,872 $ 7,935,037 City of Solana Beach's Net Retiree Healthcare
Plan OPEB Liability as a Percentage of Retiree
Healthcare Plan Covered-Employee Payroll 13.27% 19.63% 28.24% 27.83% 29.29% See Accompanying Notes to the Required Supplementary Information. 92 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
RETIREE HEALTHCARE PLAN
LAST TEN FISCAL YEARS
JUNE 30, 2025
2020 2019 2018 2017
TOTAL OPEB LIABILITY
Service cost $ 140,334 $ 218,793 $ 231,577 $ 225,000
Interest 231,171 187,559 172,035 164,000
Actual vs. expected experience (42,558) - - -
Assumption changes (384,986) (1,145,939) (242,883) -
Benefit payments (248,040) (230,041) (219,042) (147,532) Net Changes (304,079) (969,628) (58,313) 241,468
Total OPEB Liability - Beginning 3,836,527 4,806,155 4,864,468 4,623,000 Total OPEB Liability - Ending (a) $ 3,532,448 $ 3,836,527 $ 4,806,155 $ 4,864,468
PLAN FIDUCIARY NET POSITION
Contributions - employer $ 446,751 $ 484,191 $ 307,582 $ 233,000 Net investment income 20,418 27,769 23,652 17,000
Benefit payments (248,040) (227,210) (219,042) (148,000) Administrative expenses (4,056) (2,496) (2,062) -
Other changes - - - 151
Net Changes 215,073 282,254 110,130 102,151
Plan Fiduciary Net Position - Beginning 633,535 351,281 241,151 139,000 Plan Fiduciary Net Position - Ending (b) $ 848,608 $ 633,535 $ 351,281 $ 241,151 PLAN NET OPEB LIABILITY - ENDING (a) - (b) $ 2,683,840 $ 3,202,992 $ 4,454,874 $ 4,623,317 Retiree Healthcare Plan Fiduciary Net Position
as a Percentage of the Plan Total OPEB Liability 24.02% 16.51% 7.31% 4.96% City of Solana Beach's Retiree Healthcare Plan
Covered-Employee Payroll $ 7,671,497 $ 7,533,033 $ 7,506,736 $ 7,050,741 City of Solana Beach's Net Retiree Healthcare
Plan OPEB Liability as a Percentage of Retiree
Healthcare Plan Covered-Employee Payroll 34.98% 42.52% 59.35% 65.57% See Accompanying Notes to the Required Supplementary Information. 93 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
SCHEDULE OF EMPLOYER CONTRIBUTIONS
RETIREE HEALTHCARE PLAN
LAST TEN FISCAL YEARS
JUNE 30, 2025
2025 2024 2023 2022 2021
Retiree Healthcare Plan Actuarially Determined Contribution $ 318,178 $ 317,950 $ 321,907 $ 318,390 $ 389,000 Retiree Healthcare Plan Contributions in Relation to the Actuarially Determined Contribution 577,889 369,427 398,228 402,299 480,132 Contribution Excess (Deficiency) $ 259,711 $ 51,477 $ 76,321 $ 83,909 $ 91,132 Retiree Healthcare Plan Covered-Employee Payroll $ 9,350,067 $ 8,681,872 $ 7,935,037 $ 7,671,497 $ 7,533,033 Plan Fiduciary Net Position as a
Percentage of the Total Pension Liability 6.18% 4.26% 5.02% 5.24% 6.37% 2020 2019 2018 2017
Retiree Healthcare Plan Actuarially Determined Contribution $ 378,000 $ 484,191 $ 220,491 $ 531,000 Retiree Healthcare Plan Contributions in Relation to the Actuarially Determined Contribution 446,751 484,191 252,055 233,000 Contribution Excess (Deficiency) $ 68,751 $ - $ 31,564 $ (298,000) Retiree Healthcare Plan Covered-Employee Payroll $ 7,506,736 $ 7,050,741 $ 6,666,082 $ 6,406,137 Plan Fiduciary Net Position as a
Percentage of the Total Pension Liability 5.95% 6.87% 3.78% 3.64% See Accompanying Notes to the Required Supplementary Information. 94 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2025
Note 1:
Note 2:
Budgetary Information
The City is required by its municipal code to adopt an annual budget on or before June 30 for the ensuring fiscal year. The budget is adopted on a basis consistent with accounting principles generally accepted in the United States of America. From the effective date of the budget adoption, the amounts budgeted become the “annual appropriated budget.” The annual appropriated budget is adopted for the General Fund, special revenue funds, capital projects funds and debt service funds.
The City Council may amend the budget by motion during the fiscal year. The appropriations constitute the budget for the 2024-2025 fiscal year and the City Manager is authorized to transfer monies between accounts within a department, provided that the total budget for the department is not exceeded. Transfer of monies from one department of the City to another, or from one fund to another, shall be approved by the City Council. However, any revisions that alter total expenditures of any fund must be approved by the City Council.
Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at the end of the fiscal year. Selected appropriations are carried over. Project-length financial plans are adopted for the City capital projects. Supplemental appropriations, which increase appropriations, may be made during the fiscal year.
Miscellaneous and Safety Employees’ Pension Plans
1. Benefit Changes:
a. There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees such as Golden Handshakes, service purchases, and other prior service costs.
2. Changes of Assumptions:
a. There were no assumption changes in 2024. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, and 7.65% for measurement dates June 30, 2015 through June 30, 2016.
95 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) JUNE 30, 2025
Note 2: Miscellaneous and Safety Employees’ Pension Plans (Continued)
3. Methods and assumptions used to determine contribution rates for the most recent year include:
a. Valuation Date: June 30, 2022
b. Actuarial Cost Method: Entry Age Normal Cost Method
c. Amortization Method: Varies by date established and source. May be level dollar or level percent of pay and may include direct rate smoothing. d. Asset Valuation Method: Fair value of assets
e. Inflation: 2.30%
f. Salary Increases: Varies by category, entry age and duration of service. g. Discount Rate: 6.90% (net of administrative expenses) h. Payroll Growth: 2.80%
Note 3: Retiree Healthcare Plan Other Post-Employment Benefits Plan
1. The schedules are intended to show information for ten years. Historical information is required only for years for which GASB Statement Nos. 74 and 75 are applicable; fiscal year 2016-17 was the first year of implementation. Additional years will be displayed as they become available.
2. There were no changes of benefit terms.
3. Methods and assumptions used to determine contribution rates for the most recent year include:
a. Actuarial Valuation Date: June 30, 2023
b. Contribution Policy: City contributes full ADC
c. Discount Rate and Long-Term Expected Rate of Return on Assets: 5.50% at June 30, 2025; 5.50% at June 30, 2024; Expected City contributions projected to keep sufficient plan assets to pay all benefits from trust d. General Inflation: 2.50% annually
e. Mortality, Retirement, Disability, Termination: CalPERS 2000-2019 Experience Study
f. Mortality improvement: Mortality projected fully generational with Scale MP-2021 g. The schedules are intended to show information for ten years. Historical information is required only for years for which GASB Statement Nos. 74 and 75 are applicable; fiscal year 2016-17 was the first year of implementation. Additional years will be displayed as they become available.
h. Salary Increases: Aggregate -2.75% annually; Merit – CalPERS 2000-2019 Experience Study
i. Medical Trend: Non-Medicare – 8.50% for 2025, decreasing to an ultimate rate of
3.45% in 2076; Medicare (Non-Kaiser)– 7.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076; Medicare (Kaiser) – 6.25% for 2025, decreasing to an ultimate rate of 3.45% in 2076.
j. PEMHCA Minimum Increases: 3.50% annually
k. Cap Increases: No increases on $325 and $290 benefit l. Healthcare Participation for Future Retirees: Actives & Surviving Spouses Hired < 1/1/07: Covered – 90%; Waived – 70%. Actives & Surviving Spouses Hired > 1/1/07: Covered – 60%; Waived – 50%. Retirees & Surviving Spouses: Covered 100%; Waived < 65 – 20% at 65; Waived > 65 – 0%
m. Changes of Assumptions:
i. The implicit subsidy was removed for PEMHCA minimum retirees after Medicare eligibility
96 Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) JUNE 30, 2025
Note 3: Retiree Healthcare Plan Other Post-Employment Benefits Plan (Continued) ii. CalPERS 2000-2019 Experience Study was used for demographic assumptions and merit salary increases
iii. Mortality improvement scale was updated to Scale MP-2021 iv. Updated medical trend rates
v. PEMHCA minimum trend rate updated from 3.75% to 3.50% vi. Waived retiree re-election updated to 0% at age 65
n. Changes of benefit terms: None
97 Item L.2
THIS PAGE INTENTIONALLY LEFT BLANK
98 Item L.2
SUPPLEMENTARY INFORMATION
99 Item L.2
THIS PAGE INTENTIONALLY LEFT BLANK
100
Item L.2
NON-MAJOR GOVERNMENTAL FUNDS
Gas Tax Fund - accounts for revenues received and expenditures made for street-related activities.
Revenues are received from the State of California for the City's share of gasoline taxes pursuant to California Streets and Highways Code Sections 2105, 2106, 2107, and 2107.5.
TransNet Fund – accounts for revenues received and expenditures related to transportation development, transit, and related studies. Funding is provided to the City as a secondary recipient under an agreement with the County of San Diego and with San Diego Associations of Governments.
Municipal Improvement Districts Fund - accounts for receipts and expenditures related to landscape maintenance within the various improvement districts. The assessments are collected via the County tax roll.
Lighting District Fund - accounts for the revenues received and expenditures related to streetlights on the City's streets. The City determines the yearly budget, and property owners are charged their proportionate share on a per-unit basis. The assessments are collected via the County tax roll.
COPS Fund - accounts for federal and state grants received for police services.
Public Safety Fund - accounts for federal and state grants received for public safety.
Fire Mitigation Fund - accounts for fire mitigation fees collected during new structural development based on construction type and size. The fees are restricted to equipment purchases only.
CDBG Fund - accounts for the revenues and expenditures of the Community Development Block Grant program.
Coastal Area Business/Visitor Assistance and Enhancement Fund - accounts for expenditures that include local visitor and business promotion such as assistance to the Chamber of Commerce and North County Convention and Visitor's Bureau, special events such as the Fiesta Del Sol, public art, and visitor enhancements to the Highway 101 business corridor or the Cedros Design District.
Boating and Waterways Fund - accounts for grants received from the Department of Boating and Waterways. These funds are being used to fund the US Army Corps of Engineers beach replenishment study.
Miscellaneous Grants Fund - accounts for grants received to fund various ongoing capital projects.
Developer Pass-Thru Fund - accounts for resources reserved to developer deposits.
Housing Fund - accounts for resources reserved to provide for low- and moderate-income housing.
Camp Programs Fund - accounts for camp programs in the City.
SB1 Streets & Roads Fund - accounts for revenues received and expenditures made for streetrelated activities. Revenues are received from the State of California for the City's share of SB1 taxes pursuant.
Assessment Districts CIP Fund - accounts for capital projects in the assessment districts.
Sand Replenishment Fund – accounts for sand replenishment, sand retention, and coastal improvement projects.
City Debt Service Fund - accounts for debt service in the City. 101
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
ASSETS
Cash and investments $ 873,133 $ 357,188 $ 896,493
Receivables:
Accounts - - -
Interest 5,860 3,360 13,073
Intergovernmental 31,482 - 7,026
Inventories - - -
Total Assets $ 910,475 $ 360,548 $ 916,592
LIABILITIES
Accounts payable $ 13,209 $ 7,485 $ 51,992
Accrued liabilities - - 1,208
Unearned revenues - - -
Deposits payable - - -
Due to other funds - - -
Total Liabilities 13,209 7,485 53,200
FUND BALANCES
Nonspendable - - -
Restricted 897,266 353,063 863,392
Unassigned (Deficit) - - -
Total Fund Balances (Deficit) 897,266 353,063 863,392
Total Liabilities of Resources
and Fund Balances (Deficit) $ 910,475 $ 360,548 $ 916,592 Municipal
Improvement
Districts
Special Revenue Funds
Gas Tax TransNet
102
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
ASSETS
Cash and investments
Receivables:
Accounts
Interest
Intergovernmental
Inventories
Total Assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Total Liabilities
FUND BALANCES
Nonspendable
Restricted
Unassigned (Deficit)
Total Fund Balances (Deficit)
Total Liabilities of Resources
and Fund Balances (Deficit)
(continued)
$ 3,844,984 $ 333,831 $ 856,399
- - 39,871
34,154 - 9,085
7,282 - -
- - -
$ 3,886,420 $ 333,831 $ 905,355
$ 25,455 $ - $ 24,145
9,482 - 7,726
- 1 -
- - -
- - -
34,937 1 31,871
- - -
3,851,483 333,830 873,484
- - -
3,851,483 333,830 873,484
$ 3,886,420 $ 333,831 $ 905,355
Lighting
District
Special Revenue Funds
COPS Public Safety
103
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
ASSETS
Cash and investments
Receivables:
Accounts
Interest
Intergovernmental
Inventories
Total Assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Total Liabilities
FUND BALANCES
Nonspendable
Restricted
Unassigned (Deficit)
Total Fund Balances (Deficit)
Total Liabilities of Resources
and Fund Balances (Deficit)
(continued)
$ 55,272 $ - $ - $ 1,540,989
- - - -
696 - - 13,008
- - 748 -
- - - -
$ 55,968 $ - $ 748 $ 1,553,997
$ 1,902 $ - $ 2,715 $ 45,603
- - - -
- - - -
- - - -
- - 15,511 -
1,902 - 18,226 45,603
- - -
54,066 - - 1,508,394
- - (17,478) -
54,066 - (17,478) 1,508,394
$ 55,968 $ - $ 748 $ 1,553,997
Fire Mitigation
Special Revenue Funds
Coastal Area
Business /
Visitor
Assistance &
CDBG Enhancement
Transportation
Development
Act
104
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
ASSETS
Cash and investments
Receivables:
Accounts
Interest
Intergovernmental
Inventories
Total Assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Total Liabilities
FUND BALANCES
Nonspendable
Restricted
Unassigned (Deficit)
Total Fund Balances (Deficit)
Total Liabilities of Resources
and Fund Balances (Deficit)
(continued)
$ - $ 205,294 $ 614,907
- 2,790 -
- - 6,171
- 7,788 -
- - -
$ - $ 215,872 $ 621,078
$ - $ 13,458 $ 2,266
- - -
- 76,814 618,434
- - -
- - -
- 90,272 620,700
- - -
- 125,600 -
- - 378
- 125,600 378
$ - $ 215,872 $ 621,078
Miscellaneous
Grants
Boating &
Waterways
Special Revenue Funds
Developer PassThru
105
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
ASSETS
Cash and investments
Receivables:
Accounts
Interest
Intergovernmental
Inventories
Total Assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Total Liabilities
FUND BALANCES
Nonspendable
Restricted
Unassigned (Deficit)
Total Fund Balances (Deficit)
Total Liabilities of Resources
and Fund Balances (Deficit)
(continued)
$ 1,550,806 $ (26,512) $ 473,441
- 17,812 -
16,627 - 1,937
- - 62,184
- 63,200 -
$ 1,567,433 $ 54,500 $ 537,562
$ - $ 19,483 $ -
- 55,365 -
- - -
- 455 -
- 85,149 -
- 160,452 -
- 63,200 -
1,567,433 - 537,562
- (169,152) -
1,567,433 (105,952) 537,562
$ 1,567,433 $ 54,500 $ 537,562
SB 1 Streets &
Roads
Camp
Housing Programs
Special Revenue Funds
106
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
ASSETS
Cash and investments
Receivables:
Accounts
Interest
Intergovernmental
Inventories
Total Assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Total Liabilities
FUND BALANCES
Nonspendable
Restricted
Unassigned (Deficit)
Total Fund Balances (Deficit)
Total Liabilities of Resources
and Fund Balances (Deficit)
(continued)
Debt Service
Fund
Total
$ 92,555 $ 1,795,579 $ 24,916 $ 13,489,275
- - - 60,473
- 13,628 - 117,599
- - - 116,510
- - - 63,200
$ 92,555 $ 1,809,207 $ 24,916 $ 13,847,057
$ - $ 36,837 $ - $ 244,550
- - - 73,781
- - - 695,249
- - - 455
- - - 100,660
- 36,837 - 1,114,695
- - - 63,200
92,555 1,772,370 24,916 12,855,414
- - - (186,252)
92,555 1,772,370 24,916 12,732,362
$ 92,555 $ 1,809,207 $ 24,916 $ 13,847,057
City Debt
Service
Assessment
Districts CIP
Sand
Replenishment
Capital Project Funds
107
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Municipal
Improvement
Gas Tax TransNet Districts
REVENUES
Taxes and assessments $ 371,267 $ - $ 835,482
License and permits - 32,607 -
Intergovernmental - 535,105 2,552
Charges for services - - -
Use of money and property 28,968 15,973 64,470
Other revenues - - -
Total Revenues 400,235 583,685 902,504
EXPENDITURES
Current:
Public safety - - -
Public works - - 1,359,343
Community development - - -
Community services - - -
Capital outlay 252,483 219,637 -
Debt service:
Principal retirement - - -
Interest and fiscal charges - 325,105 -
Total Expenditures 252,483 544,742 1,359,343
Excess (Deficiency) of Revenue
Over (Under) Expenditures 147,752 38,943 (456,839)
OTHER FINANCING SOURCES (USES)
Transfers in - - -
Transfers out - (81,188) -
Total Other Financing Sources (Uses) - (81,188) -
Net Change in Fund Balance 147,752 (42,245) (456,839)
Fund Balances (Deficit):
Fund Balance - Beginning 749,514 395,308 1,320,231
Fund Balance - Ending $ 897,266 $ 353,063 $ 863,392
Special Revenue Funds
108
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
REVENUES
Taxes and assessments
License and permits
Intergovernmental
Charges for services
Use of money and property
Other revenues
Total Revenues
EXPENDITURES
Current:
Public safety
Public works
Community development
Community services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenue
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances (Deficit):
Fund Balance - Beginning
Fund Balance - Ending
(continued)
Lighting
District COPS Public Safety
$ 805,092 $ - $ -
- - -
3,015 194,663 351,155
- - -
185,816 - 42,172
- - 3,112
993,923 194,663 396,439
- 195,376 302,929
725,452 - -
- - -
- - -
- - 32,581
- - -
- - -
725,452 195,376 335,510
268,471 (713) 60,929
- - -
(70,375) - -
(70,375) - -
198,096 (713) 60,929
3,653,387 334,543 812,555
$ 3,851,483 $ 333,830 $ 873,484
Special Revenue Funds
109
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
REVENUES
Taxes and assessments
License and permits
Intergovernmental
Charges for services
Use of money and property
Other revenues
Total Revenues
EXPENDITURES
Current:
Public safety
Public works
Community development
Community services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenue
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances (Deficit):
Fund Balance - Beginning
Fund Balance - Ending
(continued)
Coastal Area
Business/Visitor
Fire Assistance &
Mitigation CDBG Enhancement
$ - $ - $ 222,807
- - -
- 51,928 -
11,440 - -
3,331 - 61,390
- - 2,675
14,771 51,928 286,872
21,910 748 -
- - -
- - 73,538
- - -
- 51,921 59,543
- - -
- - -
21,910 52,669 133,081
(7,139) (741) 153,791
- - -
- - -
- - -
(7,139) (741) 153,791
61,205 (16,737) 1,354,603
$ 54,066 $ (17,478) $ 1,508,394
Special Revenue Funds
110
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
REVENUES
Taxes and assessments
License and permits
Intergovernmental
Charges for services
Use of money and property
Other revenues
Total Revenues
EXPENDITURES
Current:
Public safety
Public works
Community development
Community services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenue
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances (Deficit):
Fund Balance - Beginning
Fund Balance - Ending
(continued)
Boating & Miscellaneous Developer
Waterways Grants Pass-Thru
$ - $ - $ -
- - -
- 71,566 -
- - 16,363
- - 25,977
- - -
- 71,566 42,340
- - -
- 72,278 -
- - 41,962
- - -
- 7,788 -
- - -
- - -
- 80,066 41,962
- (8,500) 378
- - -
(3,967) - -
(3,967) - -
(3,967) (8,500) 378
3,967 134,100 -
$ - $ 125,600 $ 378
Special Revenue Funds
111
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
REVENUES
Taxes and assessments
License and permits
Intergovernmental
Charges for services
Use of money and property
Other revenues
Total Revenues
EXPENDITURES
Current:
Public safety
Public works
Community development
Community services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenue
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances (Deficit):
Fund Balance - Beginning
Fund Balance - Ending
(continued)
Camp SB1 Streets
Housing Programs & Roads
$ - $ - $ 352,875
- - -
- - -
- 612,593 -
78,319 - 15,207
27,569 - -
105,888 612,593 368,082
- 542,855 -
- - -
- - -
- 125,813 -
- - 300,098
- - -
- - -
- 668,668 300,098
105,888 (56,075) 67,984
- - -
- - -
- - -
105,888 (56,075) 67,984
1,461,545 (49,877) 469,578
$ 1,567,433 $ (105,952) $ 537,562
Special Revenue Funds
112
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
REVENUES
Taxes and assessments
License and permits
Intergovernmental
Charges for services
Use of money and property
Other revenues
Total Revenues
EXPENDITURES
Current:
Public safety
Public works
Community development
Community services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenue
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances (Deficit):
Fund Balance - Beginning
Fund Balance - Ending
(continued)
Debt Service
Fund
Assessment Sand City Debt
Districts CIP Replenishment Service Total
$ - $ 445,614 $ - $ 3,033,137
- - - 32,607
- - - 1,209,984
- - - 640,396
- 68,418 - 590,041
- - - 33,356
- 514,032 - 5,539,521
- - - 1,063,818
- - - 2,157,073
- - - 115,500
- - - 125,813
7,855 130,178 - 1,062,084
- - 62,972 62,972
- - 7,402 332,507
7,855 130,178 70,374 4,919,767
(7,855) 383,854 (70,374) 619,754
- - 70,375 70,375
- - (971) (156,501)
- - 69,404 (86,126)
(7,855) 383,854 (970) 533,628
100,410 1,388,516 25,886 12,198,734
$ 92,555 $ 1,772,370 $ 24,916 $ 12,732,362
Capital Project Funds
113
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
GAS TAX FUND
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, 2024 $ 749,514 $ 749,514 $ 749,514 $ - Resources (Inflows):
Taxes and assessments 386,908 386,908 371,267 (15,641)
Use of money and property 2,100 2,100 28,968 26,868
Amounts Available for Appropriations 1,138,522 1,138,522 1,149,749 11,227 Charges to Appropriations (Outflows):
Capital outlay 430,000 670,172 252,483 417,689
Total Charges to Appropriations 430,000 670,172 252,483 417,689 Budgetary Fund Balance, June 30, 2025 $ 708,522 $ 468,350 $ 897,266 $ 428,916 Budget Amounts
114
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
TRANSNET FUND
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, 2024 $ 395,308 $ 395,308 $ 395,308 $ - Resources (Inflows):
Service fees 50,000 50,000 32,607 (17,393)
Intergovernmental 483,530 483,530 535,105 51,575
Use of money and property 1,575 1,575 15,973 14,398
Amounts Available for Appropriations 930,413 930,413 978,993 48,580 Charges to Appropriations (Outflows):
Current:
Public works - 15,350 - 15,350
Capital outlay 210,000 552,401 219,637 332,764
Debt service:
Interest and fiscal charges 325,105 325,105 325,105 -
Transfers out - 81,188 81,188 -
Total Charges to Appropriations 535,105 974,044 625,930 348,114 Budgetary Fund Balance, June 30, 2025 $ 395,308 $ (43,631) $ 353,063 $ 396,694 Budget Amounts
115
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
MUNICIPAL IMPROVEMENT DISTRICTS FUND
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, 2024 $ 1,320,231 $ 1,320,231 $ 1,320,231 $ - Resources (Inflows):
Taxes and assessments 775,638 775,638 835,482 59,844
Intergovernmental 2,700 2,700 2,552 (148)
Use of money and property 15,278 15,405 64,470 49,065
Amounts Available for Appropriations 2,113,847 2,113,974 2,222,735 108,761 Charges to Appropriations (Outflows):
Current:
Public works 883,614 1,386,543 1,359,343 27,200
Total Charges to Appropriations 883,614 1,386,543 1,359,343 27,200 Budgetary Fund Balance, June 30, 2025 $ 1,230,233 $ 727,431 $ 863,392 $ 135,961 Budget Amounts
116
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
LIGHTING DISTRICT FUND
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, 2024 $ 3,653,387 $ 3,653,387 $ 3,653,387 $ - Resources (Inflows):
Taxes and assessments 724,327 724,327 805,092 80,765
Intergovernmental 3,200 3,200 3,015 (185)
Use of money and property 42,525 42,525 185,816 143,291 Amounts Available for Appropriations 4,423,439 4,423,439 4,647,310 223,871 Charges to Appropriations (Outflows):
Current:
Public works 776,868 817,825 725,452 92,373
Transfers out 70,375 70,375 70,375 -
Total Charges to Appropriations 847,243 888,200 795,827 92,373 Budgetary Fund Balance, June 30, 2025 $ 3,576,196 $ 3,535,239 $ 3,851,483 $ 316,244 Budget Amounts
117
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
COPS FUND
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, 2024 $ 334,543 $ 334,543 $ 334,543 $ - Resources (Inflows):
Intergovernmental 145,000 153,800 194,663 40,863
Use of money and property 3,150 3,150 - (3,150)
Amounts Available for Appropriations 482,693 491,493 529,206 37,713 Charges to Appropriations (Outflows):
Current:
Public safety 145,000 195,377 195,376 1
Total Charges to Appropriations 145,000 195,377 195,376 1 Budgetary Fund Balance, June 30, 2025 $ 337,693 $ 296,116 $ 333,830 $ 37,714 Budget Amounts
118
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
PUBLIC SAFETY FUND
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, 2024 $ 812,555 $ 812,555 $ 812,555 $ - Resources (Inflows):
Intergovernmental 220,000 220,000 351,155 131,155
Use of money and property - - 42,172 42,172
Other revenues - 3,112 3,112 -
Amounts Available for Appropriations 1,032,555 1,035,667 1,208,994 173,327 Charges to Appropriations (Outflows):
Current:
Public safety 220,000 327,848 302,929 24,919
Capital outlay - 60,000 32,581 27,419
Total Charges to Appropriations 220,000 387,848 335,510 52,338 Budgetary Fund Balance, June 30, 2025 $ 812,555 $ 647,819 $ 873,484 $ 225,665 Budget Amounts
119
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
FIRE MITIGATION FUND
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, 2024 $ 61,205 $ 61,205 $ 61,205 $ - Resources (Inflows):
Charges for services 15,000 15,000 11,440 (3,560)
Use of money and property - - 3,331 3,331
Amounts Available for Appropriations 76,205 76,205 75,976 (229) Charges to Appropriations (Outflows):
Current:
Public safety 15,000 36,600 21,910 14,690
Total Charges to Appropriations 15,000 36,600 21,910 14,690 Budgetary Fund Balance, June 30, 2025 $ 61,205 $ 39,605 $ 54,066 $ 14,461 Budget Amounts
120
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
CDBG FUND
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, 2024 $ (16,737) $ (16,737) $ (16,737) $ - Resources (Inflows):
Intergovernmental 45,000 103,312 51,928 (51,384)
Amounts Available for Appropriations 28,263 86,575 35,191 (51,384) Charges to Appropriations (Outflows):
Current:
Public safety - 750 748 2
Capital outlay 45,000 102,562 51,921 50,641
Total Charges to Appropriations 45,000 103,312 52,669 50,643 Budgetary Fund Balance, June 30, 2025 $ (16,737) $ (16,737) $ (17,478) $ (741) Budget Amounts
121
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
COASTAL AREA BUSINESS/VISITOR ASSISTANCE AND ENHANCEMENT FUND FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, 2024 $ 1,354,603 $ 1,354,603 $ 1,354,603 $ - Resources (Inflows):
Taxes and assessments 195,438 220,438 222,807 2,369
Use of money and property 10,500 10,500 61,390 50,890
Other revenues 3,500 3,500 2,675 (825)
Amounts Available for Appropriations 1,564,041 1,589,041 1,641,475 52,434 Charges to Appropriations (Outflows):
Current:
Community development 91,374 128,482 73,538 54,944
Capital outlay - 164,960 59,543 105,417
Total Charges to Appropriations 91,374 293,442 133,081 160,361 Budgetary Fund Balance, June 30, 2025 $ 1,472,667 $ 1,295,599 $ 1,508,394 $ 212,795 Budget Amounts
122
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
MISCELLANEOUS GRANTS FUND
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, 2024 $ 134,100 $ 134,100 $ 134,100 $ - Resources (Inflows):
Intergovernmental 18,000 7,048,538 71,566 (6,976,972)
Amounts Available for Appropriations 152,100 7,182,638 205,666 (6,976,972) Charges to Appropriations (Outflows):
Current:
General government 5,000 3,772 - 3,772
Public safety 13,000 13,000 - 13,000
Public works - 72,278 72,278 -
Capital outlay - 7,007,788 7,788 7,000,000
Total Charges to Appropriations 18,000 7,096,838 80,066 7,016,772 Budgetary Fund Balance, June 30, 2025 $ 134,100 $ 85,800 $ 125,600 $ 39,800 Budget Amounts
123
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
DEVELOPER PASS-THRU FUND
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, 2024 $ - $ - $ - $ -
Resources (Inflows):
Charges for services 100,000 100,000 16,363 (83,637)
Use of money and property - 25,000 25,977 977
Other revenues - - - -
Amounts Available for Appropriations 100,000 125,000 42,340 (82,660) Charges to Appropriations (Outflows):
Current:
Community development 100,000 113,385 41,962 71,423
Total Charges to Appropriations 100,000 113,385 41,962 71,423 Budgetary Fund Balance, June 30, 2025 $ - $ 11,615 $ 378 $ (11,237) Budget Amounts
124
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
HOUSING FUND
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, 2024 $ 1,461,545 $ 1,461,545 $ 1,461,545 $ - Resources (Inflows):
Use of money and property 6,300 6,300 78,319 72,019
Other revenues - - 27,569 27,569
Amounts Available for Appropriations 1,467,845 1,467,845 1,567,433 99,588 Charges to Appropriations (Outflows):
Current:
Community development 10,000 10,000 - 10,000
Total Charges to Appropriations 10,000 10,000 - 10,000
Budgetary Fund Balance, June 30, 2025 $ 1,457,845 $ 1,457,845 $ 1,567,433 $ 109,588 Budget Amounts
125
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
CAMP PROGRAMS FUND
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, 2024 $ (49,877) $ (49,877) $ (49,877) $ - Resources (Inflows):
Charges for services 565,000 565,000 612,593 47,593
Amounts Available for Appropriations 515,123 515,123 562,716 47,593 Charges to Appropriations (Outflows):
Current:
Public safety 629,412 603,766 542,855 60,911
Community services 123,976 134,148 125,813 8,335
Total Charges to Appropriations 753,388 737,914 668,668 69,246 Budgetary Fund Balance, June 30, 2025 $ (238,265) $ (222,791) $ (105,952) $ 116,839 Budget Amounts
126
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
SB1 STREETS & ROADS FUND
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, 2024 $ 469,578 $ 469,578 $ 469,578 $ - Resources (Inflows):
Taxes and assessments 260,100 260,100 352,875 92,775
Use of money and property - 100 15,207 15,107
Amounts Available for Appropriations 729,678 729,778 837,660 107,882 Charges to Appropriations (Outflows):
Capital outlay 300,000 600,100 300,098 300,002
Total Charges to Appropriations 300,000 600,100 300,098 300,002 Budgetary Fund Balance, June 30, 2025 $ 429,678 $ 129,678 $ 537,562 $ 407,884 Budget Amounts
127
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
CITY CIP FUND
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, 2024 $ 9,376,614 $ 9,376,614 $ 9,376,614 $ - Resources (Inflows):
Charges for services 305,000 1,302,155 1,178,291 (123,864) Use of money and property 7,140 14,251 505,257 491,006
Other revenues - - 1,750 1,750
Transfers in - 2,491,188 2,491,188 -
Amounts Available for Appropriations 9,688,754 13,184,208 13,553,100 368,892 Charges to Appropriations (Outflows):
Current:
Public works - 17,624 14,777 2,847
Capital outlay 480,000 7,838,385 838,418 6,999,967
Total Charges to Appropriations 480,000 7,856,009 853,195 7,002,814 Budgetary Fund Balance, June 30, 2025 $ 9,208,754 $ 5,328,199 $ 12,699,905 $ 7,371,706 Budget Amounts
128
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
SAND REPLENISHMENT
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, 2024 $ 1,388,516 $ 1,388,516 $ 1,388,516 $ - Resources (Inflows):
Taxes and assessments 390,876 390,876 445,614 54,738
Use of money and property 8,400 71,440 68,418 (3,022)
Amounts Available for Appropriations 1,787,792 1,850,832 1,902,548 51,716 Charges to Appropriations (Outflows):
Capital outlay 190,000 443,040 130,178 312,862
Total Charges to Appropriations 190,000 443,040 130,178 312,862 Budgetary Fund Balance, June 30, 2025 $ 1,597,792 $ 1,407,792 $ 1,772,370 $ 364,578 Budget Amounts
129
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
CITY DEBT SERVICE FUND
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, 2024 $ 25,886 $ 25,886 $ 25,886 $ - Resources (Inflows):
Transfers in 70,375 70,375 70,375 -
Amounts Available for Appropriations 96,261 96,261 96,261 - Charges to Appropriations (Outflows):
Debt service:
Principal retirement 62,973 62,973 62,972 1
Interest and fiscal charges 7,402 7,402 7,402 -
Total Charges to Appropriations 70,375 71,346 71,345 1
Budgetary Fund Balance, June 30, 2025 $ 25,886 $ 24,915 $ 24,916 $ 1 Budget Amounts
130
Item L.2
FIDUCIARY FUNDS
Undergrounding District Funds - the Barbara/Granados Avenue, Pacific Avenue/East and West Circle Drive, and Marsolan Avenue Utility Underground Assessment Districts are utility districts created to finance the undergrounding of utility lines. These funds account for payments from property owners as well as debt service on bonds that were issued to pay for the underground improvements within the assessment districts. This is accounted for as a custodial fund because the City has no responsibility for the debt service on the bonds.
South Solana Sewer District Fund - this fund was formed to finance the construction of sewer improvements to connect the 51 properties of the assessment district to the City's sewer system. This fund accounts for payments from property owners as well as debt service on the bonds that were issued to pay for the sewer improvements. This is accounted as a custodial fund because the City has no responsibility for the debt service on the bonds.
131
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2025
Undergrounding South Solana
Districts Sewer District Total
ASSETS
Cash and cash equivalents $ 255,084 $ 74,947 $ 330,031
Investments:
Money market mutual funds 381 51 432
Local Agency Investment Fund 60,535 - 60,535
Asset-backed securities 13,421 1,791 15,212
Federal agency securities 40,104 5,352 45,456
Medium term corporate notes 35,401 4,724 40,125
Supranational securities 3,435 459 3,894
US Treasury securities 83,990 11,207 95,197
Receivables:
Due from other governments 1,706 4,195 5,901
Total Assets 494,056 102,726 596,782
LIABILITIES
Accounts payable 817 1,216 2,033
Total Liabilities 817 1,216 2,033
NET POSITION
Restricted for:
Individuals, organizations, and other governments 493,239 101,510 594,749 Total Net Position $ 493,239 $ 101,510 $ 594,749
132
Item L.2
CITY OF SOLANA BEACH, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Undergrounding South Solana
Districts Sewer District Total
ADDITIONS
Investment earnings $ 432 $ 101 $ 533
Special assessment collections 189,451 41,015 230,466
Total Additions 189,883 41,116 230,999
DEDUCTIONS
Contractual services 4,590 1,654 6,244
Principal 80,000 20,000 100,000
Interest expense 89,112 16,879 105,991
Total Deductions 173,702 38,533 212,235
Net Increase (Decrease) in Fiduciary Net Position 16,181 2,583 18,764 Net Position - Beginning 477,058 98,927 575,985
Net Position - Ending $ 493,239 $ 101,510 $ 594,749
133
Item L.2
THIS PAGE INTENTIONALLY LEFT BLANK
134
Item L.2
STATISTICAL SECTION
This part of the City of Solana Beach's annual comprehensive financial report presents detailed information as context for understanding the information in the financial statements, note disclosures, and required supplementary information.
CONTENTS
Page
Financial Trends 136
These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time.
Revenue Capacity 140
These schedules contain information to help the reader assess the government's most significant local revenue sources.
Debt Capacity 144
These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future.
Demographic and Economic Information 148
These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place.
Operating Information 151
These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year.
135
Item L.2
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Government activities
Net Investment in Capital
Assets $ 30,366 $ 28,412 $ 27,241 $ 29,397 $ 26,666 $ 26,653 $ 26,397 $ 34,678 $ 37,408 $ 37,417 Restricted 5,826 6,620 9,139 11,239 12,665 14,174 17,971 21,964 27,018 32,257 Unrestricted 1,231 1,795 (2,320) (3,911) (1,488) (1,346) 290 5,289 8,223 11,141 Total governmental activities
net position $ 37,423 $ 36,827 $ 34,060 $ 36,725 $ 37,843 $ 39,481 $ 44,658 $ 61,931 $ 72,649 $ 80,815 Business-type activities
Net Investment in Capital
Assets $ 5,594 $ 6,195 $ 5,929 $ 8,893 $ 12,053 $ 11,186 $ 11,656 $ 11,548 $ 11,538 $ 11,378 Unrestricted 29,711 32,867 36,722 35,711 34,350 36,890 38,141 39,496 38,050 39,640 Total governmental activities
net position $ 35,305 $ 39,062 $ 42,651 $ 44,604 $ 46,403 $ 48,076 $ 49,797 $ 51,044 $ 49,588 $ 51,018 Primary government
Net Investment in Capital
Assets $ 35,960 $ 34,607 $ 33,170 $ 38,290 $ 38,719 $ 37,839 $ 38,053 $ 46,225 $ 48,947 $ 48,795 Restricted 5,826 6,620 9,139 11,239 12,665 14,174 17,971 21,964 27,018 32,257 Unrestricted 30,942 34,662 34,402 31,800 32,862 35,544 38,431 44,785 46,272 50,781 Total governmental activities
net position $ 72,728 $ 75,889 $ 76,711 $ 81,329 $ 84,246 $ 87,557 $ 94,455 $ 112,974 $ 122,237 $ 131,833
CITY OF SOLANA BEACH
Net Position by Component
Last Ten Fiscal Years (In thousands)
(Accrual Basis of Accounting)
Fiscal Year, Ended June 30
136
Item L.2
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses
Governmental Activities:
General government $ 3,944 $ 4,309 $ 4,101 $ 3,651 $ 4,985 $ 5,537 $ 4,570 $ 4,491 $ 5,858 $ 8,019 Public safety 9,162 9,628 10,540 11,051 12,630 13,117 13,906 11,414 13,129 14,419 Public works 5,438 5,487 5,944 5,937 4,888 4,666 5,412 5,377 5,643 6,907 Community development 1,378 1,745 1,755 1,482 1,586 1,507 1,505 1,261 1,519 2,070 Community services 628 1,122 731 1,178 1,220 1,193 1,218 919 976 1,047 Interest on long-term debt 398 389 382 368 363 356 346 385 369 356 Total Governmental Activities expenses $ 20,948 $ 22,680 $ 23,453 $ 23,667 $ 25,672 $ 26,376 $ 26,957 $ 23,847 $ 27,494 $ 32,818 Business-Type Activities:
Sanitation $ 3,569 $ 1,602 $ 2,100 $ 4,205 $ 4,221 $ 3,891 $ 4,308 $ 5,020 $ 7,887 $ 5,288 Solana Energy Alliance Fund - - 391 5,211 4,350 3,841 (127) 19 2 1 Total Business-Type Activities Expenses $ 3,569 $ 1,602 $ 2,491 $ 9,416 $ 8,571 $ 7,732 $ 4,181 $ 5,039 $ 7,889 $ 5,289 Total Primary Government Expenses $ 24,517 $ 24,282 $ 25,944 $ 33,083 $ 34,243 $ 34,108 $ 31,138 $ 28,886 $ 35,383 $ 38,107 Program Revenues
Governmental Activities:
Charges for services:
General government $ - $ - $ - $ 194 $ - $ 92 $ 31 $ 1,126 $ 1,175 $ 1,130 Public safety 578 621 577 581 402 325 385 463 588 601
Public works 417 450 699 1,006 358 494 1,566 605 169 608 Community development 928 1,252 1,300 1,169 1,191 1,083 1,274 1,597 1,469 1,637 Community services 365 400 336 336 23 277 507 549 591 613 Operating Contributions:
General government - - - - - - (15) - - -
Public safety 270 199 178 186 199 467 453 418 268 413
Public works 1,045 1,241 1,107 1,405 889 1,215 2,673 2,587 1,565 1,484 Community development 200 - 100 - - - - 2 96 16
Community services - 129 139 149 80 233 161 165 186 195 Capital Contributions and Grants:
General government - - - - - - (112) - - -
Community development - - - - - - - 8,466 167 11
Public safety 160 158 420 298 345 302 - - - -
Total Governmental Activities Program Revenues $ 3,963 $ 4,450 $ 4,856 $ 5,324 $ 3,487 $ 4,488 $ 6,923 $ 15,978 $ 6,274 $ 6,708 Business-Type Activities:
Charges for services:
Sanitation $ 5,152 $ 5,255 $ 5,416 $ 5,592 $ 5,588 $ 5,676 $ 5,817 $ 5,847 $ 5,737 $ 5,726 Solana Energy Alliance Fund - - 494 5,202 4,178 3,567 1 1 - - Total Business-Type Activities Program Revenues $ 5,152 $ 5,255 $ 5,910 $ 10,794 $ 9,766 $ 9,243 $ 5,818 $ 5,848 $ 5,737 $ 5,726 Total Primary Government Program Revenues $ 9,115 $ 9,705 $ 10,766 $ 16,118 $ 13,253 $ 13,731 $ 12,741 $ 21,826 $ 12,011 $ 12,434 Net (Expense)/Revenue
Governmental Activities $ (16,985) $ (18,230) $ (18,597) $ (18,343) $ (22,185) $ (21,888) $ (20,034) $ (7,869) $ (21,220) $ (26,110) Business-Type Activities 1,583 3,653 3,419 1,378 1,195 1,511 1,637 809 (2,152) 437 Total primary Government Net Expense $ (15,402) $ (14,577) $ (15,178) $ (16,965) $ (20,990) $ (20,377) $ (18,397) $ (7,060) $ (23,372) $ (25,673) General Revenues and Other Charges in Net Position
Governmental Activities:
Taxes:
Property taxes, levied for general purpose $ 7,706 $ 8,095 $ 8,587 $ 9,070 $ 9,465 $ 10,094 $ 10,523 $ 11,639 $ 12,353 $ 12,982 Sales taxes 3,255 3,128 3,191 3,503 3,292 3,690 4,413 5,846 9,470 9,348 Transient occupancy taxes 1,606 1,740 1,828 2,019 1,457 1,457 2,575 2,904 2,884 2,896 Franchise taxes 736 733 723 793 751 789 874 897 857 814 Motor Vehicle in Lieu - Unrestricted 2,798 2,869 3,170 3,547 3,620 3,746 3,880 2,053 2,194 2,321 Use of money and property 261 284 287 1,101 1,133 632 (400) 783 2,435 4,130 Other 736 786 722 976 3,586 3,121 3,343 1,019 1,745 1,972 Total Governmental Activities $ 17,098 $ 17,635 $ 18,508 $ 21,009 $ 23,304 $ 23,529 $ 25,208 $ 25,141 $ 31,938 $ 34,463 Business-Type Activities:
Use of money and property $ 115 $ 89 $ 82 $ 557 $ 423 $ 125 $ 35 $ 150 $ 561 $ 602 Other 49 14 88 16 181 37 49 289 135 398
Total Business-Type Activities $ 164 $ 103 $ 170 $ 573 $ 604 $ 162 $ 84 $ 439 $ 696 $ 1,000 Total Primary Government $ 17,262 $ 17,738 $ 18,678 $ 21,582 $ 23,908 $ 23,691 $ 25,292 $ 25,580 $ 32,634 $ 35,463 -
Changes in Net Position
Governmental Activities $ 113 $ (595) $ (89) $ 2,666 $ 1,119 $ 1,641 $ 5,174 $ 17,272 $ 10,718 $ 8,353 Business-Type Activities 1,747 3,756 3,589 1,951 1,799 1,673 1,721 1,248 (1,456) 1,437 Total Primary Government $ 1,860 $ 3,161 $ 3,500 $ 4,617 $ 2,918 $ 3,314 $ 6,895 $ 18,520 $ 9,262 $ 9,790
CITY OF SOLANA BEACH
Changes in Net Position
Last Ten Fiscal Years (In thousands)
(Accrual Basis of Accounting)
Fiscal Year
137
Item L.2
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Fund
Nonspendable $ 7,471 $ 20,164 $ 72,579 $ 23,402 $ 52,665 $ 54,212 $ 136,395 $ 41,589 $ 41,024 $ 1,808,044 Restricted 508,897 893,185 1,294,957 1,743,908 2,422,056 3,245,475 3,218,592 5,003,450 6,764,356 8,473,683 Committed 787,790 914,846 1,015,354 1,436,307 1,179,507 901,576 1,295,357 1,292,880 1,292,880 1,145,577 Assigned 5,520,890 5,690,381 5,805,890 6,041,593 6,349,702 6,206,689 6,241,345 6,786,980 6,786,980 9,721,212 Unassigned 6,200,244 6,805,201 7,385,736 4,588,069 5,450,148 7,138,002 9,289,801 10,055,355 13,464,544 13,096,685 Total General Fund $ 13,025,292 $ 14,323,777 $ 15,574,516 $ 13,833,279 $ 15,454,078 $ 17,545,954 $ 20,181,490 $ 23,180,254 $ 28,349,784 $ 34,245,201 All Other Governmental Funds
Nonspendable $ - $ - $ 200 $ - $ - $ - $ 47,545 $ 47,545 $ 44,707 $ 63,200 Restricted 5,316,698 5,726,668 7,844,224 9,494,837 10,242,525 10,928,273 14,752,364 16,960,567 21,641,962 25,555,319 Assigned 849,917 1,385,099 - - - - - - - -
Unassigned (184,544) (336,475) (234,689) (112,596) (58,138) (464,267) (227,092) 1,077,040 (111,321) (186,252) Total all other Governmental Funds $ 5,982,071 $ 6,775,292 $ 7,609,735 $ 9,382,241 $ 10,184,387 $ 10,464,006 $ 14,572,817 $ 18,085,152 $ 21,575,348 $ 25,432,267
CITY OF SOLANA BEACH
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis Of Accounting)
Fiscal Year
138
Item L.2
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues:
Taxes and assessments $ 14,719,229 $ 15,109,053 $ 15,945,223 $ 17,275,214 $ 16,842,473 $ 19,775,654 $ 22,265,851 $ 24,943,501 $ 29,507,231 $ 30,144,898 Licenses and permits 471,581 527,146 508,549 486,891 345,168 532,496 773,593 1,089,274 815,647 862,030 Intergovernmental 3,069,673 3,185,272 3,498,266 3,665,899 3,284,923 1,916,664 3,322,539 11,286,855 1,641,997 1,448,167 Charges for services 1,313,658 1,699,140 1,584,561 2,230,614 1,268,823 1,449,714 2,754,210 1,802,138 1,531,318 2,999,039 Use of money and property 261,466 283,828 286,867 1,100,795 1,132,930 631,813 (399,689) 783,458 2,435,455 3,097,774 Fines and forfeitures 502,921 495,885 479,933 502,249 359,703 244,331 261,932 408,220 528,722 517,129 Other 735,521 785,872 1,061,983 975,510 3,585,904 3,121,247 3,348,906 4,102,253 5,115,040 4,769,429 Total revenues 21,074,049 22,086,196 23,365,382 26,237,172 26,819,924 27,671,919 32,327,342 44,415,699 41,575,410 43,838,466 Expenditures:
General government 3,500,443 3,777,819 3,820,029 4,191,376 4,705,339 5,032,268 5,598,530 7,061,076 7,309,390 7,626,488 Public safety 8,912,742 9,070,746 9,831,070 10,243,546 11,573,438 12,538,907 12,043,209 12,708,776 13,610,080 14,297,647 Public works 2,463,442 2,509,194 2,628,777 2,975,518 3,401,680 3,125,907 3,792,133 4,324,397 4,698,902 5,753,109 Community development 1,380,934 1,721,715 1,574,333 1,523,428 1,544,402 1,446,878 1,347,528 1,625,027 1,662,678 1,806,706 Community services 278,481 760,475 328,755 830,315 797,410 680,982 825,180 843,668 991,555 1,103,519 Capital outlay 2,190,316 1,473,835 2,417,383 5,763,230 1,692,966 1,800,676 1,430,880 10,752,411 4,212,404 2,790,344 Debt Service:
Principal retirement 161,086 288,487 296,366 303,971 316,505 319,071 199,531 203,808 60,855 62,971 Interest 383,130 392,219 383,487 374,519 365,239 355,735 346,004 385,436 369,820 356,292 Total expenses 19,270,574 19,994,490 21,280,200 26,205,903 24,396,979 25,300,424 25,582,995 37,904,599 32,915,684 33,797,076 Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,803,475 2,091,706 2,085,182 31,269 2,422,945 2,371,495 6,744,347 6,511,100 8,659,726 10,041,390 Other financing sources (uses):
Transfers in 743,400 1,576,800 997,300 2,636,370 799,915 353,500 2,992,483 5,093,101 4,120,375 3,566,501 Transfers out (743,400) (1,576,800) (997,300) (2,636,370) (799,915) (353,500) (2,992,483) (5,093,101) (4,120,375) (3,855,555) Contributions to OPEB Trust Fund (135,000) - - - - - - - - - Long-term debt issued 614,759 - - - - - - - - -
Total other financing sources (uses) 479,759 - - - - - - - - (289,054) Net change in fund balances /
net position $ 2,283,234 $ 2,091,706 $ 2,085,182 $ 31,269 $ 2,422,945 $ 2,371,495 $ 6,744,347 $ 6,511,100 $ 8,659,726 $ 9,752,336 Capital assets used in debt
service calculation* $ 2,194,361 $ 1,440,550 $ 2,432,556 $ 5,754,228 $ 1,697,994 $ 1,723,018 $ 1,537,279 $ 10,105,863 $ 2,882,183 $ 2,790,344 Debt service as a percentage of
noncapital expenditures 3.2% 3.7% 3.6% 3.3% 3.0% 2.9% 2.3% 2.1% 1.4% 1.4% * The amount of capital outlay used to calculate the ratio of total debt service expenditures to noncapital expenditures is the same as the reconciling item for capital outlay in the reconciliation between the government-wide statement of activities and the statement of revenues, expenditures and changes in fund balance.
CITY OF SOLANA BEACH
Changes In Fund Balances Of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis Of Accounting)
Fiscal Year
139
Item L.2
Taxable Assessed
Total Estimated Value as a
Total Taxable Direct Actual Percentage of
Fiscal Residential Commercial Other Assessed Tax Taxable Actual Year Property Property Property Value Rate ValueaTaxable Value 2015 $ 3,369,557 $ 468,396 $ 141,424 $ 3,979,377 0.1779% N/A N/A 2016 3,568,242 487,490 145,778 4,201,511 0.1778% N/A N/A 2017 3,771,217 501,508 156,383 4,429,108 0.1779% N/A N/A 2018 4,001,491 564,824 158,421 4,724,736 0.1778% N/A N/A 2019 4,270,745 594,932 172,181 5,037,858 0.1778% N/A N/A 2020 4,502,927 618,256 166,573 5,287,755 0.1780% N/A N/A 2021 4,738,936 632,197 175,989 5,547,122 0.1780% N/A N/A 2022 4,929,359 642,174 (24,412) 5,547,122 0.1781% N/A N/A 2023 5,334,233 657,405 238,875 6,230,513 0.1780% N/A N/A 2024 5,643,413 751,584 256,761 6,651,758 0.1781% N/A N/A 2025 5,943,330 796,079 283,695 7,023,104 0.1781% N/A N/A (a) The County of San Diego does not compile Estimated Actual Valuations N/A - Data not available
Source: San Diego County Assessor 2015/16 - 2024/25 Combined Tax Rolls HdL Coren & Cone.
City of Solana Beach Finance Department
CITY OF SOLANA BEACH
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(in thousands of dollars)
140
Item L.2
General
Basic Municipal Total City's
Fiscal Tax Improvement Lighting Share of 1%
Year Levy District District Levy per Prop 13
2016 0.1602 0.0037 0.09600 0.1735
2017 0.1602 0.0037 0.09600 0.1735
2018 0.1602 0.0037 0.00955 0.1735
2019 0.1602 0.0037 0.00955 0.1735
2020 0.1602 0.0037 0.00955 0.1735
2021 0.1602 0.0037 0.00955 0.1735
2022 0.1602 0.0037 0.00955 0.1735
2023 0.1602 0.0037 0.00955 0.1735
2024 0.1602 0.0037 0.00955 0.1735
2025 0.1602 0.0037 0.00955 0.1735
Carlsbad/ Solana Beach Metropolitan Mira Costa San Dieguito Total Oceanside/ Santa Fe Educational School District Water Comm Prop Aa Direct & Fiscal San Diego Vista School Community Irrigation Revenue Prop JJ District College 11/6/2013 Overlapping Year County (1) Projects Districts College District (2) Augmentation Debt Service Debt Service 2016A 2013A A1 Tax Rate 2016 0.167550 0.0004 0.40281 0.10486 0.025340 0.12551 - 0.0035 - 0.0227 1.02622 2017 0.167550 0.0004 0.40281 0.10486 0.025340 0.12551 - 0.0035 - 0.0228 1.02625 2018 0.167490 0.0004 0.40285 0.10490 0.025330 0.12550 0.03093 0.0035 0.01443 0.0223 1.07115 2019 0.167490 0.0004 0.40293 0.10490 0.025330 0.12550 0.02886 0.0035 0.01294 0.0230 1.06828 2020 0.167490 0.0004 0.40293 0.10490 0.025330 0.12550 0.02800 0.0035 0.01299 0.0232 1.06767 2021 0.167490 0.0004 0.40290 0.10490 0.025330 0.12550 0.02688 0.0035 0.01373 0.0233 1.06738 2022 0.167490 0.0004 0.40290 0.10490 0.025330 0.12550 0.02653 0.0035 0.01339 0.0223 1.06575 2023 0.167490 0.0004 0.40290 0.10490 0.025330 0.12550 0.02506 0.0035 0.01357 0.0214 1.06356 2024 0.167490 0.0004 0.40290 0.10490 0.025330 0.12550 0.02346 0.0035 0.01164 0.0208 1.05938 2025 0.167490 0.0004 0.40290 0.10490 0.025330 0.12550 0.02250 0.007 0.01148 0.0207 1.06164 (1)
(2)
(3)
Source:
CITY OF SOLANA BEACH
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Includes only rate(s) from indebtedness adopted prior to 1989 per California State Statute San Diego County Assessor 2024/25 Annual Tax Increment Tables and HdL Coren and Cone.
Overlapping Rates
Voter Approved (3)
City's Share of 1% Levy Per Prop 13
Overlapping Rates
Includes County School Services, Library, Childrens Institution Tuition, and Regional Occupational Centers.
Includes CWA, Santa Fe Irrigation District (.00423) and Santa Fe Irrigation (.02111) (rate per $100 of taxable value)
141
Item L.2
Percentage
of Total City
Taxable Taxable
Assessed Assessed
Taxpayer Value Value
For the Fiscal Year Ended June 30, 2025
S B T C Holdings LLC (Pending Appeals on Parcels) $ 110,895,104 1.58% Pacific Solana Beach Holdings LP 77,307,344 1.10%
SB Corporate Centre III-IV LLC (Pending Appeals on Parcels) 64,357,210 0.92% Zephyr Solana LLC 58,875,247 0.84%
Solana Beach Self Storage Owner LP (Pending Appeals on Parcels) 50,459,400 0.72% Sanyo Foods Corporation of America 37,884,122 0.54%
Solana Beach Run LLC 37,832,825 0.54%
E R P Operating LP 22,272,717 0.32%
Cedros Venture Fund I LLC 21,914,475 0.31%
Lavida Delmar Asscs LP 20,240,450 0.29%
Total $ 502,038,894 7.15%
For the Fiscal Year Ended June 30, 2016
S B T C Holdings LLC (Pending Appeals on Parcels) $ 116,112,633 2.76% Pacific Solana Beach Holdings LP 65,362,371 1.56%
SB Corporate Centre III-IV LLC (Pending 32,429,542 0.77% Sanyo Foods Corporation of America (Pending 30,808,427 0.73% Fenton Solana Highlands LLC (Pending Appeals on Parcels) 29,470,038 0.70% Muller-Beachwalk LLC 20,670,000 0.49%
E R P Operating LP 18,845,748 0.45%
Lavida Delmar Associates LP 16,813,394 0.40%
Hankey Investment Company LP 14,447,010 0.34%
Solana Mar LLC 13,670,116 0.33%
Total $ 358,629,279 8.54%
CITY OF SOLANA BEACH
Principal Property Tax Payers
Current Year and Nine Years Ago
Source: HdL Coren & Cone and San Diego County Assessor 2015/16 & 2024/25 Combined Tax Rolls 142
Item L.2
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30, Fiscal Year Amount of Levy Years Amount of Levy 2016 $ 6,931,466 $ 6,635,180 95.7% $ 80,163 $ 6,715,343 96.9% 2017 7,300,293 7,017,400 96.1% 27,141 7,044,541 96.5%
2018 7,741,663 7,444,166 96.2% 33,622 7,477,788 96.6%
2019 8,232,844 7,949,648 96.6% 27,740 7,977,388 96.9%
2020 8,622,755 8,306,418 96.3% 36,401 8,342,819 96.8%
2021 9,074,415 8,652,200 95.3% 65,224 8,717,424 96.1%
2022 9,507,779 9,078,200 95.5% 70,616 9,148,816 96.2%
2023 10,371,116 10,237,578 98.7% 16,297 10,253,875 98.9% 2024 11,296,637 10,658,832 94.4% 258,986 10,917,818 96.6% 2025 11,787,499 11,387,891 96.6% 350,980 11,738,871 99.6% Sources:
CITY OF SOLANA BEACH
Property Tax Levies and Collections
Last Ten Fiscal Years
City of Solana Beach Finance Department, County of San Diego Office of Auditor-Controller.
Collected within the
Fiscal Year of the Levy Total Collections to Date
143
Item L.2
Business-type
Activities
Refunding Bonds and Total Percentage
Fiscal Lease Finance Direct Borrowing Primary of Personal Per Year ABAG Bonds Purchase Placements Government Income a Capita a 2016 $ 940,600 $ 5,500,000 $ 1,271,372 $ 10,339,405 $ 18,051,377 4.05% 1,338 2017 811,391 5,500,000 1,113,062 9,373,587 16,798,040 4.85% 1,242 2018 685,559 5,500,000 943,496 19,146,912 26,275,967 3.10% 1,885 2019 556,825 5,500,000 769,326 18,064,945 24,891,096 3.52% 1,786 2020 420,291 5,500,000 590,421 17,449,133 23,959,845 3.66% 1,731 2021 286,057 5,500,000 406,649 16,818,322 23,011,028 3.89% 1,664 2022 144,423 5,500,000 349,819 16,262,766 22,257,008 4.04% 1,737 2023 - 5,500,000 291,011 15,694,711 21,485,722 4.31% 1,681 2024 - 5,500,000 230,155 15,104,156 20,834,311 5.36% 1,617 2025 - 5,500,000 167,184 14,493,601 20,160,785 5.94% 1,553 Notes:
a
See Demographic and Economic Statistics schedule for personal income and population data.
These ratios are calculated using personal income and population for the prior calendar year. * Prior years adjusted to comply with GASB comment Q&A 9.24- Included the Premiums/Discounts and Bonds Details regarding the city's outstanding debt can be found in the notes to the financial statements.
CITY OF SOLANA BEACH
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Government Activities
144
Item L.2
Fiscal Year 2024-25 Assessed Valuation : $ 7,024,550,028 Percent Net
Gross Bonded Applicable Bonded
Overlapping Tax & Assessment Debt Debt Balance to City (1) Debt $ 17,155,000 0.173% $ 29,678
$ 349,345,000 4.668% $ 16,307,425
$ 392,195,000 7.712% $ 30,246,078
$ 23,130,000 0.555% $ 128,372
$ 85,645,000 32.467% $ 27,806,362
$ 1,855,000 100.000% $ 1,855,000
$ 2,820,000 1.338% $ 37,732
$ 76,410,647
$ 351,065,000 0.948% $ 3,328,096
$ 140,370,000 0.948% $ 1,330,708
$ 5,125,000 0.948% $ 48,585
$ 48,020,000 4.668% $ 2,241,574
$ 12,730,000 7.712% $ 981,738
$ 5,162,096 27.418% $ 1,415,343
City of Solana Beach Finance Purchase Obligation $ 167,183 100.000% 167,183 $ 9,513,227
$ 5,500,000 100.000% $ 5,500,000
$ 5,500,000
$ 1,764,200 100.000% $ 1,764,200
TOTAL DIRECT DEBT $ 5,667,183
TOTAL OVERLAPPING DEBT $ 87,520,891
COMBINED TOTAL DEBT (2) $ 93,188,074
Debt to Assessed Valuation Ratios :
Total Overlapping Tax & Assessment Debt
Total Direct Debt ($220,636)
Combined Total Debt
Redevelopment Incremental Valuation ($293,509,608) Ratio:
Total Overlapping Tax Increment Debt
Notes:
Source: California Municipal Statistics, Inc.
Total Direct & Overlapping General Fund Debt
1.33%
(1) - Percentage of overlapping agency's assessed valuation located within the boundaries of the
0.60%
San Diego County Superintendent of Schools General
Fund Obligations
San Dieguito Union High School District Certificates of Participation
0.08%
1.09%
Solana Beach School District General Fund
Obligations
Mira Costa Community College District Certificates of
Participation
Direct Sales Tax Revenue Debt
San Diego Regional Transportation Commission Sales
Tax Revenue Bonds
Total Direct Sales Tax Revenue Debt
(2) - Excludes tax and revenue anticipation notes, enterprise revenues, mortgage revenue and tax allocation bonds.
Metropolitan Water District
CITY OF SOLANA BEACH
Direct and Overlapping Governmental Activities Debt
As of June 30, 2025
Overlapping Tax Increment Debt
Mira Costa Community College District
San Dieguito Union High School District
San Dieguito Union High School District Community
Facilities District No. 95-1
Solana Beach School District School Facilities
Improvement District No. 2016-1
City of Solana Beach 1915 Act Bonds
Olivenhain Municipal Water District, Assessment
District No. 96-1
San Diego County General Fund Obligations
San Diego County Pension Obligations
Total Overlapping Tax & Assessment Debt
Direct & Overlapping General Fund Debt
145
Item L.2
Legal Debt Margin Calculation for Fiscal Year 2024
Assessed value $ 7,024,550
Debt limit (15% of assessed value) 1,053,683
Debt applicable to limit:
General obligation bonds -
Total net debt applicable to limit -
Legal debt margin $ 1,053,683
Legal Debt
Total net debt Margin
Applicable to Legal Percentage of
Fiscal Year Debt Limit Limit Debt Margin Debt Limit
2016 $ 630,359 $ - $ 630,359 100.00%
2017 664,464 - 664,464 100.00%
2018 708,810 - 708,810 100.00%
2019 755,767 - 755,767 100.00%
2020 793,275 - 793,275 100.00%
2021 832,192 - 832,192 100.00%
2022 861,939 - 861,939 100.00%
2023 934,577 - 934,577 100.00%
2024 997,965 - 997,965 100.00%
2025 1,053,683 - 1,053,683 100.00%
CITY OF SOLANA BEACH
Legal Debt Margin Information
Last Ten Fiscal Years
(dollars in thousands)
146
Item L.2
Use of Net
Fiscal Money & Lease/ Less: Available
Year Property Rents Expenditures Revenue
2016* $ - $ 153,283 $ - $ 153,283
2017* - 152,429 - 152,429
2018* - 151,067 - 151,067
2019* - 154,321 - 154,321
2020* - 147,382 - 147,382
2021* - 150,056 - 150,056
2022* - 147,465 - 147,465
2023* - - - -
2024* - - - -
2025* - - - -
Fiscal
Year Principal Interest Coverage
2016* $ 123,400 $ 29,883 1.00
2017* 126,800 25,629 1.00
2018* 129,800 21,267 1.00
2019* 137,600 16,721 1.00
2020* 135,300 12,082 1.00
2021* 142,700 7,356 1.00
2022* 145,000 2,465 1.00
2023* - - 0.00
2024* - - 0.00
2025* - - 0.00
Notes:
* 2002 ABAG Lease Revenue Bonds
Expenditures do not include interest, depreciation, or amortization
CITY OF SOLANA BEACH
Pledged-Revenue Coverage
Last Ten Fiscal Years
2011 ABAG Refunded Lease Revenue Bonds
Debt Service
Details regarding the city's outstanding debt can be found in the notes to the financial statements.
147
Item L.2
Personal Per
Income Capita
Calendar (thousands Personal Unemployment
Year Population of dollars) Income Rate
2015 13,494 $ 778,568 $ 57,697 4.8%
2016 13,527 815,210 60,265 4.3%
2017 13,938 830,408 59,579 1.7%
2018 13,933 875,833 62,860 1.7%
2019 13,838 873,757 63,142 1.7%
2020 13,827 894,002 64,656 5.1%
2021 12,812 899,448 70,204 2.6%
2022 12,784 925,044 72,360 1.8%
2023 12,887 1,116,234 86,617 2.0%
2024 12,986 1,197,612 92,223 2.3%
Sources: HdL Coren & Cone report prepared on 11/21/25
CITY OF SOLANA BEACH
Demographic and Economic Statistics
Last Ten Calendar Years
148
Item L.2
Employer Category Industry
32nd St Naval Station 3 Federal Government-National Security Collins Aerospace 1 Aircraft Components-Manufacturers
Employees' Association - SDG&E 1 Associations
General Dynamics Nassco 1 Ship Builders & Repairers (Mfrs) Illumina Inc 1 Biotechnology Products & Services
Jennifer Moreno Dept - Veterans 1 Hospitals
Kaiser Permanente Vandever Med 2 Physicians & Surgeons
Kaiser Permanente Zion Med Ctr 1 Hospitals
Marine Corps Recruit Depot 1 Military Bases
MCCS MCRD San Diego - Marine Corps 2 Military Bases
Merchants Building Maintenance 1 Janitor Service
Naval Medical Center San Diego 2 Hospitals
Page One Seo 1 Mental Health Services
Rady's Children's Hospital 1 Hospitals
San Diego Community College 2 Junior-Community College- Tech Institutes San Diego County Sheriff 1 Police Departments
Scripps Mercy Hospital San Diego 1 Hospitals
Scripps Research Institute 1 Laboratories-Research & Development Seaworld San Diego 1 Amusement & Theme Parks
Sharp Grossmont Hospital 1 Hospitals
Sharp Grossmont Rehab Center 1 Vocational Rehabilitation Services Sharp Mary Birch Hospital 1 Hospitals
Sony Electronics Inc 1 Electronic Equipment & Supplies-Retail UCSD- Neural Computation 3 University-College Dept/Facility/Office University of California - San Diego 3 Schools-Universities & College Academic Source:
State of California- Employee Development Department- Major Employers in San Diego for 2025 Categories
1 1,000-4,999 Employees
2 5,000-9,999 Employees
3 10,000+ Employees
CITY OF SOLANA BEACH
25 MAJOR EMPLOYERS - SAN DIEGO COUNTY
AS OF 2025
149
Item L.2
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function/Program
General government
City Council 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 City Clerk 3.10 3.10 3.10 3.10 3.23 3.23 3.48 3.23 3.23 3.23 City Manager 2.05 1.80 1.90 1.90 2.48 2.48 2.58 2.58 2.58 2.58 Legal Services 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 Finance 3.55 3.55 3.45 3.05 3.30 3.70 3.35 3.35 3.90 4.25 Risk Mgt - Ins & Workers Comp - - - - 1.20 1.20 1.20 1.20 1.35 1.35 Personnel/Human Resources 1.00 1.15 0.95 0.95 0.95 0.95 1.20 1.20 2.10 2.10 Info/Communication Systems 1.00 1.00 1.00 1.00 1.00 1.00 1.50 1.50 2.50 2.50 Community Development 6.00 5.80 5.80 5.80 6.00 7.00 6.00 6.00 7.00 7.00 Public Safety
Fire 19.95 19.95 20.20 20.20 20.20 20.20 20.20 20.20 19.20 19.2 Code Enforcement 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 Marine Safety 9.49 9.49 9.29 9.29 9.71 9.71 9.71 9.71 10.13 12.13 Junior Lifeguards 3.53 4.03 4.23 4.23 4.7 3.98 3.93 3.93 3.93 3.93 Public Works
Engineering 2.13 2.73 2.73 2.73 2.73 2.73 2.73 2.73 2.73 2.73 Environmental/Flood Control 1.10 1.05 1.05 1.05 1.05 1.05 1.20 1.20 1.35 1.35 Street Maintenance 2.95 2.95 2.95 2.95 2.95 2.95 2.95 2.95 2.35 2.35 Park Maintenance 1.35 1.35 1.35 1.35 1.35 1.25 1.35 1.35 1.00 1.00 Recreation & Community Services
Community Services 0.95 0.90 0.90 0.65 0.90 0.65 0.85 0.85 1.10 1.10 Recreation 2.48 2.43 2.43 2.38 2.43 2.33 2.50 2.45 2.45 2.45 Sanitation 3.22 3.12 3.37 3.37 3.37 3.37 3.37 3.37 4.84 4.84 Improvement Districts 0.90 0.90 0.90 0.90 0.90 0.90 0.95 0.95 1.70 1.70 Redevelopment Agency 0.90 1.10 0.80 0.80 0.80 0.14 0.24 0.24 0.12 0.12 Solana Energy Alliance* - - - 0.75 0.75 0.75 - - - -
Total Personnel 67.90 68.65 68.65 68.70 72.25 71.82 71.54 71.24 75.81 78.16 *Solana Energy Alliance (SEA) only operated from FY 2019 through FY 2021.
CITY OF SOLANA BEACH
Full-time-Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
Fiscal Year
Notes: A full-time employee is scheduled to work 2,080 hours per year (including vacation and sick leave). Full-time equivalent employment is calculated by dividing total labor hours by 2,080.
Source: City of Solana Beach's Annual Budget
150
Item L.2
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function/Program
Community development
Number of:
Business Certificates (A) 2,068 2,007 2,055 2,345 2,677 2,677 1,608 1,853 1,859 1,742 Plan checks (B) 304 284 319 319 399 399 483 699 899 563 Code violations (C) 1,240 1,124 2,513 2,656 8 - 155 177 246° 166 Parking Citations N/A N/A N/A N/A N/A N/A N/A N/A 1,892 3,873 Police (Calendar basis)
Number of calls for service (D) (E):
Priority 1 13 7 11 9 2 9 12 13 16 16
Priority 2 437 343 470 209 159 207 281 233 210 241
Priority 3 1,740 1,141 1,825 167 117 143 160 154 136 173 Priority 4 1,110 826 1,181 1,154 1,109 1,337 1,478 1,301 1,286 1,285 Priority 5 N/A N/A N/A 247 226 337 345 274 258 321
Priority 6 N/A N/A N/A 147 287 212 164 163 148 121
Priority 7 N/A N/A N/A 703 619 832 831 834 766 764
Priority 8 N/A N/A N/A - - - - - - -
Priority 9 N/A N/A N/A - - - - - - -
FBI Index Crimes 240 173 227 139 117 231 246 219 250 284 Fire
Emergency Responses 1,810 1,883 1,859 1,792 1,792 1,495 1,569 1,469 1,884 2,714 Training Hours 5,997 4,696 4,687 6,350 6,350 6,375 7,053 6,374 6,990 7,683 Plan Checks & Project Reviews 380 390 375 375 375 436 452 490 646 597 Public works
Miles of:
Street resurfacing/repair 5.3* 1.7* 2 3.8 1.0 0.8 1.1 5.3 5.3 5.3 Street sweeping 900* 900* 504 504 504 504 504 504 504 504 Number of:
Street signal maintained 192 192 192 192 192 192 192 192 192 192 Trees pruned per year 40 500 274 280 280 280 280 280 290 290 Recreation & community services
Number of enrollees:
Day camp (Calendar basis) 266 315 322 315 312 290 303 294 301 308 Special events (attendees) 7,800 8,300 7,400 7,700 6,500 2,200 9,350 5,300 9,100 8,700 N/A - Data not available
(A) - Includes new & renewal licenses
(B) - Excludes temporary plan checks.
(C) - Code cases are based on the number of cases opened during the calendar year. ° estimated based on 9 months of data of calendar year 2024 (D) - Numbers adjusted and updated on ACFR FY16-17 for FY13-FY17 numbers to count only complete calls for service. (E) - FY18-19 San Diego Sheriff dispatch system shifted to a 9-category system Sources: Various city departments.
*
**
Street Repair in Miles
Street repair in Square Feet (SF)
CITY OF SOLANA BEACH
Operating Indicators by Function/Program
Last Ten Fiscal Years
151
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2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function/Program
Public Safety
Code enforcement vehicles 2 2 2 2 2 2 2 2 2 2
Fire
Stations 1 1 1 1 1 1 1 1 1 1
Fire Engines 3 3 3 2 2 2 2 2 2 2
Fire Ladder Truck 1 1 1 1 1 1 1 1 1 1
Other vehicles 2 2 2 3 3 3 3 3 3 2
Public works
Streets (miles) 42 42 42 42 42 42 42 42 42 42
Street lights (city-owned) 527 527 525 525 525 525 525 525 525 525 Traffic signals 16 16 16 16 16 16 16 16 16 16
Public works vehicles 11 12 8 8 8 8 8 8 9 9
Public works Corporation Yard 1 1 1 1 1 1 1 1 1 1
Recreation & community service
Community centers 2 2 2 2 2 2 2 2 2 2
Parks 3 3 2 2 2 2 2 2 2 2
Vehicles 1 1 1 1 1 1 1 1 1 1
Marine Safety
Lifeguard Stations (Permanent)* 3 6 6 3 3 3 3 3 3 3
Lifeguard Stations (Temporary) N/A N/A N/A 3 4 4 4 4 4 4 Vehicles 4 5 5 5 5 5 5 4 4 4
Notes: No capital asset indicators are available for the general government.
Sources: Various city departments.
* Both Fixed and Portable Towers up FY18. FY19 broke out number of temporary stations.
CITY OF SOLANA BEACH
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Fiscal Year
152
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Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
City Council
City of Solana Beach
City of Solana Beach, California
Independent Auditor’s Report
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Solana Beach (the City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 12, 2025.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified.
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our testing disclosed an instance of noncompliance required to be reported under Government Auditing Standards. The City was not in compliance with the debt service coverage ratio requirement of its debt covenant for the fiscal year ended June 30, 2025.
Except for this matter, the results of our tests disclosed no other instances of noncompliance or other matters required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Irvine, California
December 12, 2025
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To the Honorable Mayor and Members of the City Council
City of Solana Beach, California
We have audited the financial statements of the governmental activities, business-type activities, each major fund, and aggregate remaining fund information of the City of Solana Beach (the City) as of and for the year ended June 30, 2025, and have issued our report thereon dated December 12, 2025. Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated June 23, 2025, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting.
Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence.
We identified self-review threats to independence as a result of non-attest services provided. Those non-attest services included the preparation of the financial statements and recording journal entries detected during the audit process.
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To mitigate the risk, management has compared the draft financial statements and footnotes to the underlying accounting records to verify accuracy and has reviewed a disclosure checklist to ensure footnotes are complete and accurate.
Additionally, we utilize a quality control reviewer to perform a second review of journal entries and the financial statements. We believe these safeguards are sufficient to reduce the independence threats to an acceptable level.
Significant Risks Identified
We have identified the following significant risks:
Investments in joint ventures. We reviewed the City’s component unit joint venture financial statements to ensure the respective portion of the joint venture is properly calculated and accounted for.
Implementation of the new Compensated Absences accounting standard, Governmental Accounting Standards Board (GASB) Statement No. 101. As a result, we received the City’s records of compensated absences, tested the calculations of the records, and ensured the City’s footnote disclosures are accurate and complete in accordance with the new standard.
Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. There have been no initial selection of accounting policies. The City changed the accounting policies related to compensated absences by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 101, Compensated Absences, and risk disclosures related to government vulnerabilities due to concentrations and constraints by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 102, Certain Risk Disclosures, in the fiscal year ended June 30, 2025. Accordingly, the cumulative effect of the accounting changes as of the beginning of the year have been reported in the Statement of Activities. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
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The most sensitive accounting estimates affecting the financial statements are:
Management’s estimate of the transactions related to net pension liabilities, net other post-employment benefits (OPEB), and claims liability are based on actuarial information. We evaluated the key factors and assumptions used to develop the amounts used by the actuaries and determined that they are reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.
Management’s estimate of revenue and expense accruals related to federal grant programs. We evaluated the key factors and assumptions used to develop the amounts recorded as accruals and determined that they are reasonable in relation to the financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to the disclosure of Debt Covenant Compliance for JPA Loans in Note 10 to the financial statements calculates the City’s debt service coverage ratios, which are required disclosures related to the City’s debt covenants and are particular importance to users of the financial statements, particularly the City’s debt holders.
Significant Unusual Transactions
For purposes of this communication, professional standards require us to communicate to you significant unusual transactions identified during our audit. There were no unusual transactions noted as a result of our audit procedures.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards also require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all misstatements.
In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole or applicable opinion units.
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Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management in a letter dated December 12, 2025.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.
Other Information Included in the Annual Comprehensive Financial Report Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City’s annual report, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards, we have read the information and considered whether such information, or the manner of its presentation, was materially inconsistent with its presentation in the financial statements.
Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.
This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.
Irvine, California
December 12, 2025
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FY 2025 Annual Comprehensive
Financial Report (ACFR)
Finance Department – January 28, 2026
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Finance Department
• Total net position $131,833,130, an increase of $9,596,454 • Governmental Activities $80,814,773
• Business-Type Activities $51,018,357
• Total Revenues $47,897,158
• Governmental Activities $41,171,098
• Business-Type Activities $6,726,060
• Total Expenditures $38,106,891
• Governmental Activities $32,818,554
• Business-Type Activities $5,288,337
Highlights of the FY 2025 ACFR
January 28, 2026
FY25 Annual Comprehensive Financial Report
Slide 2
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Finance Department
General Fund Summary
January 28, 2026
FY25 Annual Comprehensive Financial Report
Slide 3
The General Fund (including internal service
funds) reported a net change in fund balance
of $5,895,417
Revenues $ 36,613,647 Expenditures 28,024,114 Other Financing Uses (net) (2,694,116) Net Change $ 5,895,417
Ending Fund Balance $ 34,245,201
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Finance Department
General Fund Reserves
January 28, 2026
FY25 Annual Comprehensive Financial Report
Slide 4
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Finance Department
General Fund Reserves (cont.)
January 28, 2026
FY25 Annual Comprehensive Financial Report
Slide 5
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Finance Department
Other Governmental Funds
January 28, 2026
FY25 Annual Comprehensive Financial Report
Slide 6
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Finance Department
Proprietary Funds
January 28, 2026
FY25 Annual Comprehensive Financial Report
Slide 7
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Finance Department
Net OPEB Liability
January 28, 2026
FY25 Annual Comprehensive Financial Report
Slide 8
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Finance Department
FY 2025 FY 2024 Difference
Miscellaneous $ 7,817,417 $ 7,863,579 $ (46,162)
Safety $ 12,973,855 $ 13,127,102 $ (153,247)
Net Pension Liability (NPL) $ 20,791,272 $ 20,990,681 $ (199,409) Funded Ratio (FNP/TPL) 71.96% 70.28%
Discount Rate 6.90% 6.90%
City's Covered Payroll $ 7,318,440 $ 6,774,082
PARS TRUST FUND (MV) $ 5,594,807 $ 4,304,974
PARS Pension Balance $ 8,473,682.94 $ 6,793,736.64
Funded Ratio (including PARS) 83.4% 79.9%
Proportionate Share of Net Pension Liability
Note: PARS Balances & City's Covered Payroll are as of the previous year to sync up with CalPERS Pension Liability Measurement Date. FY2024 Balance is as of 6/30/23 and FY 2025 Balance is as of 6/30/24.
Net Pension Liability
January 28, 2026
FY25 Annual Comprehensive Financial Report
Slide 9
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Finance Department
• There was no Single Audit Report required for FY 2025 Single Audit Report on Federal Awards
January 28, 2026
FY25 Annual Comprehensive Financial Report
Slide 10
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Finance Department
• Accept and file the City of Solana Beach ACFR for the Fiscal Year Ended 6/30/2025
Staff Recommendation
January 28, 2026
FY25 Annual Comprehensive Financial Report
Slide 11
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Finance Department
QUESTIONS?
January 28, 2026
FY25 Annual Comprehensive Financial Report
Slide 12
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City of Solana Beach
Presentation of Audit Results
Fiscal Year Ended June 30,2025
Presented by: Shannon Ayala, CPA | PARTNER
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Audit Reports
• Communication to Those in Governance
• Government Auditing Standards Opinion
• Issued an unmodified audit opinion dated
December 12, 2025
⚬ Financial statements are fairly stated in all material respects ⚬ E mphasis of matter paragraph due to implementation of new accounting standard. Our opinion is not modified with respect to this matter.
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No significant deficiencies or material
weaknesses identified
No material journal entries detected as
a result of audit procedures.
Audit Results
Finance team was well prepared for
audit
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Areas of Audit Focus
Standard approach includes substantively testing all
material assets and liabilities and analytically testing all material revenues and expenses.
Standard Approach
Materiality is 2% of revenue.
Materiality
• Implementation of GASB 101 – C ompensated Absences
• Investment in joint venture
• Benford’s law
Additional Areas of Focus
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Audit Results
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THANK YOU
FOR YOUR TIME
Presentation of Audit Results
Fiscal Year Ended June 30,2025
+760.298.5872
[email protected]
1903 Wright Place, Suite 280 | Carlsbad , CA 92008
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