OCEANSIDE — The city expects a surplus of less than $1 million for the upcoming fiscal year, the smallest surplus in the last three years.
During a June 7 meeting, the city reported just $730,000 left in the general fund account for the fiscal year 2023-24. The current budget, which ends on June 30, is estimated to have a nearly $2.1 million surplus.
Earlier this year, staff estimated the city would have a $1.32-$1.52 million surplus at the end of next year.
At the time, the council directed staff to transfer $25,000 of that surplus to the Neighborhood Services special events budget, and since the workshop, another $945,550 was transferred to the city’s capital improvement budget to fund projects including the Downtown Street Lights project ($75,000); San Luis Rey River biological services ($180,000); remodeling of Fire Station 4 ($440,550), and the Tyson Bluff design ($250,000).
Altogether, the projects reduced the budget’s surplus to $730,000.
The city is also making a lump-sum prepayment of nearly $18 million to CalPERS for the city’s annual required unfunded pension liability contribution.
According to the city’s Financial Services department, this early disbursement will help the city save nearly $600,000 down the road.
Beyond the general fund, the council approved the $165 million capital improvements program budget.
The upcoming fiscal year’s budget includes $58.34 million in new money, with $9.3 million in Measure X-funded projects to improve public safety, road conditions, infrastructure and homeless services. The capital improvements program budget is primarily funded through development impact fees.
Measure X, the city’s public safety half-cent sales tax initiative passed in 2018, is expected to accrue $18.15 million in revenue during the upcoming fiscal year. Additionally, $1.83 million in unspent funds from the current year are being rolled over for reallocation.
The city has allotted $19.23 million in the Measure X fifth-year spending plan, which includes $9.85 million to implement an enhanced emergency service delivery model, adding a paramedic squad and a community services officer program, plus $3.8 million for street and road improvements and $5.5 million for the Pier View Bridge replacement.
A proposed new project for the plan’s Year 5 will add pay for emergency medical technicians and retention incentives of $400,000.
The city’s water fund has a $300,000 surplus, wastewater has a $6.3 million surplus, and solid waste is balanced with no surplus. The Oceanside Harbor had a $20,000 deficit that will be covered by reserve funds.
Councilmember Peter Weiss voiced his concerns regarding the city’s deferred maintenance projects and its need for $2.5 million over the next decade for the San Luis Rey River flood control project.
“I don’t believe that we are adequately funding our long-term, deferred building maintenance needs or our long-term capital asset replacements which includes our parks, restrooms, draining systems,” Weiss said. “To me, this budget covers our operating costs and debt service only with some additional monies set aside for our long-term pension obligations.”
Deputy Mayor Ryan Keim cautioned the rest of the council with how they decide to use any extra money throughout the year and to keep those deferred maintenance needs in mind. Keim also noted the city has yet to set aside money to construct its new police department headquarters.
The city has several high-priority items coming down the pipeline, including the concrete pier replacement and beach sand retention and nourishment projects. Mayor Esther Sanchez agreed the city needs to remember its long-term strategies when budgeting, noting that while the city may receive grant funding for some of its big projects, it is often required to match funds for such grants.
“There’s all kinds of things that we really want to be able to do,” Sanchez said.
