OCEANSIDE — The city has divided its $16.5 million general fund surplus from the 2023-24 fiscal year between two major projects: the development of El Corazon Park Site 1 and the San Luis Rey River Flood Protection project.
The City Council unanimously approved allocating $8.25 million to El Corazon Park Site 1 on Feb. 5, closing the funding gap for the project, according to city staff.
Park Site 1 will be the first of nine park sites planned within the 465-acre El Corazon property. The site, which translates to “the heart” in Spanish, has been the focus of city planning since 1995 when a former sand mining company gifted the land to Oceanside.
While plans for the park have been in development for decades, most construction has occurred in the urban section, which makes up just 11% of the property.
Joan Bockman, board president of the Friends of El Corazon, said the nonprofit organization is thrilled to see funding allocated to the park.
“We needed to remind everybody that El Corazon is a park, park, park,” Bockman said. “There are nine park sites … so getting Park Site 1 built is so important.”
City officials expect the project’s design to be completed by summer and soil remediation construction to begin by the end of the year. That process is expected to take about a year, and construction is anticipated to start in late 2026.
Mayor Esther Sanchez, who has followed El Corazon’s development since joining the City Council more than two decades ago, expressed excitement over the project’s progress.
“It’s time to deliver to our community a promise that’s been made,” Sanchez said.
The remaining $8.25 million of the surplus will go toward a reserve account to help fund its portion of the Army Corps of Engineers’ San Luis Rey River Flood Protection project.
Originally authorized by Congress in 1970, the project aims to provide a 250-year flood protection level across 533.4 acres between the Pacific Ocean and College Boulevard.
Oceanside agreed in 1988 to fund 25% of the project’s cost. While construction was completed in 2000, environmental constraints — including critical habitats and protected species — have delayed the final transfer of responsibility to the city.
The project’s cost has increased significantly, with current estimates reaching $230.6 million. As of December, city officials reported an outstanding balance of $26 million for Oceanside’s share of the costs. They outlined plans to build reserves through future budget cycles, a potential fee program for flood-zone properties, or other funding sources such as the general fund surplus.
The additional $8.25 million brings the city’s balance to $20.91 million, leaving a shortfall of about $5 million.
City Manager Jonathan Borrego emphasized the importance of securing the remaining funds as the Army Corps moves forward with a detailed assessment of the levee system.
“We expect the Army Corps is going to be moving forward on that project, so it is imperative we have our fair share in hand, so we don’t slow down any progress the Army Corps is making,” Borrego said.
Historically, Oceanside has used half of any general fund surplus to pay down its CalPERS retirement obligations. Borrego noted that the city is making positive progress on its retirement costs and determined that now was the right time to set aside funds for the flood protection project.
The council approved the surplus allocation alongside the staff’s presentation of the city’s Five-Year Financial Forecast, which projects consistent surpluses over the next five years. The city anticipates a $3.8 million surplus in fiscal year 2025-26, gradually decreasing to $2 million by 2030.
Oceanside’s reserves remain strong, with about $104.3 million — 48% of the general fund operating budget — set aside for emergencies.
Sanchez also requested a future workshop to prioritize unfunded capital improvement projects.
