SOLANA BEACH — Measure S sales tax revenue continues to bolster the city of Solana Beach’s budget, with officials conservatively estimating a General Fund surplus of around $2.4 million each of the next two years, mainly from Measure S receipts.
The one-cent sales tax, approved by two-thirds of voters in 2022, was proposed as a new source of revenue for street maintenance, public safety services, and safe and clean public spaces like beaches and parks.
Measure S brought in $1.19 million in 2022-2023 and $5.08 million in 2023-24, and is projected to bring in $4.78 million by the end of the 2024-2025 fiscal year in July.
On May 7, the Solana Beach City Council reviewed a draft two-year budget projecting just over $5 million in Measure S revenues in each of the next two years.
City Manager Alyssa Muto said budget estimates for the next two years are more conservative and take into account the potential for an economic downturn.
“The budget will show as a balanced budget, and I want to note for the council and for the public, it does take into consideration a lot of uncertainties that exist right now in our world and in our country and in our state,” Muto said.
In the first two years of the tax, Measure S dollars have fully or partially funded various items such as a new fire truck, an electric vehicle for the Parks and Recreation Department, the Highland Drive median project, and various maintenance and replacement projects.
Looking ahead to other capital projects, the city is budgeting $4.5 million in 2025-26 and around $5 million in 2026-27. The council discussed many of these projects last month as part of the city’s 2025-26 work plan.
Nearly half of the capital project budget is being funded by Measure S dollars, including the following projects next year:
- $1.1 million annual pavement management (partially funded by Measure S)
- $900,000 for design and construction of the new Marine Safety Center at Fletcher Cove (all from Measure S)
- $500,000 for storm drain improvements (all from Measure S)
- $325,000 for repairs to the Rosa Street and Cliff Street pedestrian bridges (all from Measure S)
- $140,000 for concrete repair at Fletcher Cove (all from Measure S)
The city will also transfer Measure S revenue into the Asset Replacement Fund, the Coastal Rail Trail Fund and the Capital Improvement Program Fund, to be used at a later date.
Other projects in 2025-26 include:
- $250,000 for interim improvements at 700 Stevens Avenue, where the city is planning an expansion of La Colonia Park (the city will also finish paying off its loan for the site next year)
- $225,000 for design and construction of the Coastal Rail Trail extension at the north end of the city
- $300,000 for sanitary sewer pipeline rehabilitation
- $100,000 for a microtransit electric shuttle
- $230,000 for electric vehicle charging infrastructure
“Theres a lot we’re able to get done … a lot of it is coming from Measure S,” said Mayor Lesa Heebner.
Councilmember Dave Zito said the city should also save for asset replacement and sewer projects with funds outside of Measure S, not solely relying on Measure S revenue. He noted that the city used $1.5 million in Measure S funds to pay for a new fire truck last year.
“I was frustrated when we had to devote 100% for fire truck replacement, when we should be saving for fire trucks,” Zito said.
Muto said the city is still figuring out how best to allocate its sales tax revenue each year and has prioritized using Measure S money for projects to show residents how it is being used.
“We have plenty of money if we want to color that money [as] General Fund, but we have chosen to make it Measure S to show the taxpayer money being spent now instead of growing in reserve over the next couple years,” Muto said.
Zito also advocated for the city to start looking at unfunded work plan items that could be funded by Measure S dollars.
While there is a surplus now, leaders emphasized that it is still best to be conservative in case sales tax revenue drops.
“I’m very concerned about the uncertainty, in terms of our sales tax revenues and other sources. Speaking to some of the shop owners on South Cedros, they’re already starting to see some of the tariffs being tagged on, and some of them are absorbing them now, but they can’t keep continuing to absorb them,” said Heebner.
The final two-year budget will return to the City Council for adoption on June 18.
