Sunday, June 15, 2025

City Council Agenda: Beach Bonfires, City Budget, Housing In-Lieu Fees

Editor’s note: Updated coverage of the housing in-lieu fee discussion is available here. Other updates are available here.

The agenda for this week’s meeting of the Coronado City Council includes considering redefining the boundaries of South Beach as they relate to beach bonfires, a presentation on the proposed budget for the next fiscal year, and a request to revisit a past council decision on raising housing in-lieu fees. Public comment will be heard.

The meeting is at 4 p.m. on May 20 in the City Council Chamber at 1825 Strand Way, and will be broadcast here. A recording of the meeting will be posted here.

A potential update to the city’s beach bonfire rules
Last year, the City Council went through the laborious process of changing its policy on beach bonfires, balancing the recreational benefits with the concern of smoke sent to nearby residences, most notably to the Coronado Shores condominiums.

After several discussions and compromises, the following rules were imposed: Bonfires are permitted on South Beach, the narrow strip of land adjacent to the shores, but only if they are fueled by propane.

Elsewhere, beachgoers can build fires in personal or city-provided fire rings, provided that wood-fueled fires use clean-burning wood as opposed to materials like pallets. More background on the matter is covered here.

Council member Amy Steward, who was not yet on the council when the decision was made, submitted a Policy No. 9 request that the matter be placed on a future agenda for discussion.

Steward asked that the council discuss potentially amending the ordinance to define South Beach’s boundary as starting at the rock jetty at the Hotel del Coronado and extending to the Naval Amphibious Base, as opposed to starting at Avenida del Sol.

At a meeting earlier this month, the council approved Steward’s request and directed staff to bring a modified resolution for discussion. The adjusted resolution will be discussed at the May 20 meeting.

“Due to the prevailing winds, wood fires on the beach from Avenida del Sol north to the rock jetty negatively impact residents at the Coronado Shores,” Steward wrote in her request. “This clarifies the designation of South Beach and will minimize impact on Coronado Shores residents.”

Reconsidering a past council decision to raise housing in-lieu fees
At its April 15 meeting, the Coronado City Council voted to increase its housing in-lieu fee from $7,000 per unit to $59 per square foot. However, at the May 6 council meeting, several developers during public comment expressed concern at the increase, saying the sudden and steep increase would make many developments financially unfeasible and discourage development.

Because of the concern, Council Member Mark Fleming submitted a Policy No. 9 request asking that the city council discuss bringing the matter back to be reconsidered at a future meeting. The vote at the May 20 meeting will be whether to put the fees back on the agenda for discussion. If the council agrees to revisit the matter, it will be scheduled for deliberation and a decision at a future meeting.

A housing in-lieu fee applies to subdivision projects with two or more units, and it’s paid when developers do not provide affordable housing units in their project. Rather than include affordable units, the developer pays a fee, and that money is put toward other affordable housing projects.

Coronado’s fee has not changed since 1993, and city staff recommended the increase because Coronado needs more money for affordable housing projects. Coronado’s $7,000-per-unit fee is lower than that in other coastal communities.

But developers worry that, in addition to hurting business and discouraging development, the high fees might also impact local property values. Further, they suggested that the fee increase would hurt projects that are already in the planning or permitting stage, since these costs were not accounted for.

“I voted in favor of this dramatic increase to the in-lieu fee,” Fleming wrote in his request, “and upon the input from fellow citizens and under further consideration at a future city council meeting. I do not believe that we received constructive input on the matter from the community, and I would like to provide the community with another opportunity to inform us on how this increase might impact property owners and future property development in Coronado.”

A presentation on the proposed FY 2025-26 budget
City staff will present its proposed budget for the next fiscal year and ask for guidance and direction from the council. The proposed budget is available here, and does not include the use of reserve funds.
The General Fund, which supports 67 percent of the city’s services and projects, has a projected revenue of $82.9 million, a $7.5 million increase from last year. Expenditures are projected at $82 million, leaving a positive margin of $945,000. The projected year-end balance of the General Fund is $84.5 million, including $39.2 million in reserves.
Property tax revenue is projected to increase by 6.2 percent, and sales tax is expected to increase by 5 percent to $5.1 million. Transient Occupancy Tax (TOT) is expected to hit $22 million. Last year, the city allocated a conservative $16.5 million in TOT funds due to the the extensive restoration at the Hotel del Coronado, but TOT receipts ultimately hit $21.4 million. Because of this, and because the renovation at the Del is expected to be complete in June, the budget anticipates pre-renovation TOT receipts.
Total expenditures across all city funds are estimated a $123 million.

Public hearings for condos and other projects
The city council will hold public hearings for several construction projects. It will consider several requests for a one-lot tentative parcel maps that, if approved, will allow for condominium ownership of residential units on the lots in question. The specifics, including parcel maps, are here. The projects include a four-unit condominium on Isabella Ave.; a 12-unit condominium on Orange Ave.; and a two-unit condominium on Orange Ave. The council will also hold a public hearing considering a historic alteration permit for a property on Alameda Blvd.

Public hearings on city staff vacancies, recruitment, and retention
Per Assembly Bill 2561, public agencies must disclose the status of their employees each fiscal year. This hearing will include a presentation on current staffing vacancies, as well as recruitment and retention efforts the city is taking.

 



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Megan Kitt
Megan Kitt
Megan has worked as a reporter for more than 10 years, and her work in both print and digital journalism has been published in more than 25 publications worldwide. She is also an award-winning photographer. She holds BA degrees in journalism, English literature and creative writing and an MA degree in creative writing and literature. She believes a quality news publication's purpose is to strengthen a community through informative and connective reporting.Megan is also a mother of three and a Navy spouse. After living around the world both as a journalist and as a military spouse, she immediately fell in love with San Diego and Coronado for her family's long-term home.Have news to share? Send tips, story ideas or letters to the editor to: [email protected]

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