THE FINANCIAL LANDSCAPE OF EL CAJON
El Cajon stands out in San Diego County, but not just for being the hub of East County. The City faces significant financial challenges due to disparities in property tax revenue and higher expenses per resident. Understanding these issues is crucial for residents to appreciate the fiscal environment their City navigates. Property Tax Inequities: The Unseen Struggle Thanks to Proposition 13, passed in 1978, property taxes across California were frozen at 1% of a property’s assessed value. While this was beneficial for homeowners by stabilizing their property taxes, in San Diego County, it permanently locked individual cities into dramatically different rates of property tax revenue retained, determining their financial futures. El Cajon, unfortunately, receives only about 11% of the property tax an owner pays, while wealthier neighbors like Coronado receive nearly 30%. This disparity severely impacts the City’s budget, making other revenue streams essential to bridge the financial gap. To compound this issue, the average property value in El Cajon is significantly lower than in wealthier cities. As of 2024, the median home price in El Cajon is approximately $698,000. In contrast, Coronado boasts a median home value of around $2.5 million. This means that not only is El Cajon receiving a smaller percentage of the property tax pie, but its “pie” is much smaller, resulting in substantially lower property tax revenue per resident. The graph below clearly shows how El Cajon receives fewer property tax dollars per capita compared to other cities in San Diego County. With just $220 per capita, El Cajon lags behind cities like Coronado and Del Mar, which receive $1,906 and $1,904 per capita, respectively.
High Expenses: The Impact of Affordable and Multi-Family Housing
El Cajon hosts the highest percentage of multi- family housing and the third-highest percentage of affordable housing in San Diego County. These factors correlate with higher demands for public safety services, driving up costs per resident. The graph below illustrates the correlation between the percentage of multi-family housing and the number of 911 calls per 1,000 residents. El Cajon shows a significant correlation, indicating higher public safety costs.
170
El Cajon
Vista
160
La Mesa
150
National City
140
Oceanside
San Diego
Carlsbad
130
Coronado
Santee
120
Chula Vista
35
40
45
50
Percentage of Multi Family Housing
The data reveals that cities with more affordable and multi-family housing tend to have higher demand on emergency services, which translates to higher public safety costs. El Cajon, with almost 54% multi- family housing bears these higher costs.
The City faces significant financial challenges due to disparities in property tax revenue and higher expenses per resident.
PROPERTY TAX RETAINED PER RESIDENT
$2,000
$1,750
$1,500
$1,250
$1,000
$750
$500
$250
$0
6
MY EL CAJON • AUTUMN ISSUE 2024
Made with FlippingBook Digital Publishing Software