The city of Solana Beach’s annual financial report, which covers the fiscal year ending in 2023, was released ahead of the March 27 City Council meeting.
Highlights of the report, known as an Annual Comprehensive Financial Report, included pension liability. As of June 2023, the city’s net pension liability, which is the difference between pension liability and pension assets, increased by about $9 million from the end of fiscal year 2022 to fiscal year 2023.
“This is mainly due to the very poor investment return for the year ending June 30, 2022. The asset return was -7.5% while CalPERS expected 7.15%, for a loss of 14.65%,” interim City Manager Dan King said in a report to the council, referring to the state agency that manages the pensions of public employees.
The report also said that the city’s general fund revenues increased about 21% from the end of fiscal year 2022 to the end of fiscal year 2023, going from $23.9 million to $28.8 million.
For the fiscal year that ends this June, the city is projecting an increase in property tax revenue compared to what had been budgeted.
“Sales tax is also projected to realize an increase as the local economy continues to rebound from the pandemic,” King said in his report.
Some of the major projects underway in Solana Beach included in the audit report are the annual street maintenance program, the sewer main maintenance storm drain rehabilitation program, upgrades to the Marine Safety Center, and improvements to the tot lots at La Colonia Park and Fletcher Cove Community Park.
Phase III of the Lomas Santa Fe Corridor Project was also completed over the last fiscal year, funded by a SANDAG grant, which included final design. According to the report, the next step will be having city staff prepare a construction plan from Highland Drive to the Interstate 5 freeway using funding secured by U.S. Rep. Mike Levin.
Overall, council members said they were happy with a “clean audit.” The report was prepared by the city’s finance department and audited independently by Davis Farr.
“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, 2022,” King said in his report. “Staff is confident that this report will again earn this distinction.”
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