San Diego County Cities Excel in 2023 Rankings

April 26, 2025 TruthUSA

Commentary

I’ve grown to really appreciate The History Channel’s series “Alone” and “Alone Australia.” The premise involves ten contestants aiming to outlast one another while surviving the harsh conditions of late fall and winter above the Arctic Circle or near the Antarctic Circle. Surviving off the land is no simple task, but the ultimate survivalist earns a substantial cash prize.

I engage in a similar challenge with California’s 482 cities. Here, I monitor the last city to finish its audit by an independent Certified Public Accounting firm and subsequently publish its annual comprehensive financial report (ACFR) for the public. This reporting requirement is typically fulfilled within six months following the conclusion of the fiscal year on June 30. Occasionally, it can take up to nine months—or even years.

In Imperial County, the cities of Holtville and Westmorland still haven’t submitted their June 30, 2020, ACFRs, making them nearly four years overdue. Due to this flagrant delay, I’ve divided Caltrans District 11 into two sections, limiting this analysis to just the 18 cities in San Diego County.

The chart below includes a column indicating the dates auditors completed their fieldwork, revealing that seven cities met the December 31 timeliness benchmark. Another seven cities reached their deadlines by March 31. Number 15, Coronado, is scheduled for July 15, 2024, followed by National City (October 2, 2024), Lemon Grove (December 16, 2024), and finally La Mesa (April 11, 2025). La Mesa’s City Council approved receipt of the financial report on the evening of April 22, which is a staggering 16 months overdue—almost two years after the fiscal year ended.

The reason for La Mesa’s significant delay: “Please note: FY 23 Audit is delayed due to ERP system upgrade and will be posted as soon as complete.”

Enterprise Resource Planning (ERP) is software designed to integrate crucial business processes within an organization. Investopedia offers a tutorial on this software. We can only hope that La Mesa’s 2024 audit will be completed swiftly and that the implementation time for the software will lead to audits being released well ahead of the upcoming December 31st deadlines.

Despite being located along the Mexican border and facing immigration issues during the fiscal year ending June 30, 2023, data indicates that San Diego County’s population remained stable. The economy was also robust, as the total unrestricted net position for the 18 cities improved by $327 million. The following graph details the rankings.

The small city of Del Mar saw its unrestricted net position double, enabling it to climb one ranking. Compared to the prior year, its charges for services increased by $767,250, grants for public safety rose by $872,239, and grants for public works surged by $578,059. Property tax revenues were up by $550,991, and investment income increased by $699,868. Considering last year’s revenues exceeded expenditures by $4.6 million, these revenue gains account for the increase to $8.2 million.

Despite $1.3 million in capital projects being postponed due to the pandemic, the unrestricted net position rose by $6.2 million. This may be more information than necessary, but it illustrates what can be gleaned from a city’s ACFR.

Solana Beach made significant gains, with revenues exceeding expenditures by $17.3 million. The city allocated $4 million into restricted assets and invested $8.3 million in capital assets, leaving $5 million to bolster its unrestricted net position.

Coronado increased its unrestricted net position by 21.3 percent, fortifying its position as the County’s top fiscal city per capita. Vista improved by 17.4 percent. Oceanside’s net position rose by 61.0 percent but was surpassed by Solana Beach. San Diego improved by 12 percent. La Mesa, despite its delays, saw a 16.4 percent increase. Santee improved by 26.1 percent, surpassing La Mesa in the rankings.

Lemon Grove experienced a remarkable 155 percent improvement in its unrestricted net position, driven by $5 million in revenues exceeding expenditures, leading to a $4.1 million increase in its unrestricted net position.

Encinitas also enjoyed a positive year, reporting $17 million in revenues exceeding expenditures. However, it allocated $27.2 million into restricted assets for capital projects and netted $6.4 million in capital asset investments. This led to a $16.6 million decrease in its unrestricted net position, dropping it two slots. It also incurred $19.2 million in new debt for upgrades and saw its pension liability more than double from $27.5 million to $61.8 million, affecting future cash flow.

Returning to the initial point, timeliness is essential for informed decision-making during annual budget preparation. It is crucial for transparency among stakeholders, particularly property owners, regarding the city council’s fiscal management. Timely reporting fosters proper stewardship.

California state Sen. Steven Choi (R-Irvine) introduced a bill in February aimed at promoting timely reporting. Senate Bill 595 proposes penalties for late submissions. After all, the Franchise Tax Board imposes significant penalties for failing to file income tax returns on time; California’s municipalities should face similar consequences.

Here’s to hoping we soon receive the June 30, 2024, San Diego County rankings.

Source link