Press Release: Taxpayers Releases 2026 Municipal Report Cards
Taxpayers Association Releases 2026 Cities Report Card Grading Fiscal Health and Transparency Across San Diego County
Encinitas and Carlsbad earn the county's top marks; the City of San Diego and National City receive failing overall grades
San Diego, CA (October X, 2026) -- The San Diego County Taxpayers Association today released its 2026 Cities Report Card, an independent evaluation of the fiscal health, accountability, and transparency of 18 cities across San Diego County. Each city receives three grades — a Fiscal Health grade, a combined Accountability and Transparency grade, and an overall grade — based on 25 criteria drawn from audited financial reports, adopted budgets, and each city's tax and accountability history.
To ensure fair comparisons, the Report Card groups cities by population and scores calculation-based measures such as pension costs, net pension liability per capita, bonded debt per capita, debt service as a share of the budget, personnel costs, and staffing per 1,000 residents against the average for each city's population group. The remaining criteria evaluate basic budgeting, reporting, and transparency practices that every city should meet. Before grades were finalized, each city received an interim report card and an opportunity to submit feedback, documentation, or corrections.
Encinitas and Carlsbad earned the county's only overall "A" grades, followed by La Mesa and Oceanside at "A-." At the other end, the City of San Diego and National City both received failing overall grades, with El Cajon close behind at "D+." The City of San Diego posted the weakest fiscal-health result of any jurisdiction reviewed, earning an "F" for fiscal health with just 3.9 of 11 possible points, while National City posted the lowest total score, 14 out of 25.
"The Report Card exists to give taxpayers a clear, apples-to-apples look at how their city manages their money," said Mark Kersey, President and CEO of the Taxpayers Association. "The good news is that many San Diego County cities are managing their finances responsibly and reporting them transparently. The concerning news is that some of our largest jurisdictions are not, and the residents of those cities are the ones who will ultimately pay for it."
On fiscal health specifically, Vista earned the top grade with an "A," followed by Encinitas, Imperial Beach, and San Marcos at "A-." The lowest fiscal-health grades went to the City of San Diego, National City, and Escondido, all of which the Report Card flagged for structural budget pressures, elevated pension and personnel costs, and reserves and debt metrics that lag their peers. Several cities also lost points for not yet incorporating key performance indicators into their budgeting processes.
"A good grade on this Report Card is not about how much money a city has — it is about discipline, planning, and honesty with taxpayers," said Mike McLaughlin, chairman of the Taxpayers Association Board of Directors. "Cities that plan for the long term, set measurable goals, and report their finances openly consistently rise to the top. That is a model every city in the county can follow."
The Taxpayers Association publishes the Cities Report Card to help residents hold their local governments accountable and to encourage cities to adopt the budgeting, transparency, and accountability practices that protect taxpayers over the long term. The full 2026 Cities Report Card, along with a methodology and scoring document detailing each criterion and how points were awarded, is available at SDTaxpayers.org under “Studies”.