WEEKLY NEWS
Get in the know - May 3rd, 2024
Get in the know - May 3rd, 2024
From insightful presentations by distinguished leaders to dynamic panel discussions with influential community voices, attendees engaged in crucial conversations about cybersecurity, our binational economy, economic forecasts, and the initiatives shaping our shared future. Congratulations to all our award winners for your valuable contribution to our community!
We're grateful to everyone who joined us for this impactful Summit. Your participation and insights will help drive continued growth and prosperity for South County.
Stay tuned for more coverage of this event.
The Brownfields Assessment Project at San Diego State University (SDSU)
welcomes the entire National City community to a brownfields community
update meeting and exhibit.
When: Thursday, May 23, 2024, at 5:30-7:30pm at A Reason To Survive,
200 E 12th Street, National City, CA 91950.
A sigh of relief yesterday as Chair Powell answered investors’ biggest question yesterday: The Fed sees rate hikes as “unlikely.”
3 things we learned from the Fed:
1) Hikes aren’t in the cards.
What it means: The Fed is probably in a holding pattern until the tail end of the year. Growth is good, and it’s just taking longer to get inflation back to its 2% target. With rate hikes off the table (for now), investors can re-focus on the underlying fundamentals across asset classes. Most fixed income yields across the spectrum now outstrip cash.
2) Don’t fret about stagflation.
What it means: Growth is solid, not stagnant, and inflation is sticky, not reaccelerating. Corporate earnings, and by extension equity markets, can thrive in that environment. Already, Q1 S&P 500 earnings are expected to grow 4.5% year-over-year (up from ~3% at the start of this week and flat the week before). Of the 70% of companies that have reported, 78% have beat estimates and are doing so at an above 8% rate – both above their 10-year averages. Looking back at history, stocks tend to do pretty well when the Fed is “on hold,” especially in soft landings:
3) The balance sheet is going according to plan.
What it means: The Fed officially announced it’s slowing the pace of quantitative tightening (QT). In all, this wasn’t a huge surprise given it was flagged at the March meeting. This doesn’t really change our outlook for bond yields. But on the margin, the move could help exert some downward pressure on yields and minimize potential disorderliness in the Treasury market.
We now have just 1 cut penciled in for 2024. The good news: We think the economy can handle it.
Please let me know if you have any questions.
Best regards
Claudio
Claudio Robertson,
Executive Director
J.P. Morgan Private Bank
The South County Economic Development Council is thrilled to announce
that Yahira Galaviz, a student at Montgomery High School, has been
chosen to represent the South County in the Young Entrepreneurs Academy
(YEA) National Finals in Rochester, New York. Yahira will launch Dream
Ice Cream Sandwiches, a confectionery catering company.
This year, the South County EDC partnered with YEA to bring the program
to San Diego County for the first time, providing high school students
with the opportunity to launch and own their first business while still
in school. The inaugural class, comprising 15 students from across
the South County, spent several weeks developing business plans, building
contacts, and meeting with subject matter experts across various industries.
On Wednesday, April 24th, a pitch session was held where nine businesses
presented their newly formed organizations for funding and a chance
to travel to the national finals. Yahira's Dream Ice Cream Sandwiches
stood out among the competition, earning her a place at the YEA National
Finals in Rochester, where she will compete with other young entrepreneurs
from across the country.
Scott Andrews, President of Neighborhood National Bank, one of the
pitch session panelists and sponsors of the YEA program, shared his
excitement: "Neighborhood National Bank was excited to be part of the
inaugural class due to our commitment to enhancing the entrepreneurial
spirit throughout the community. We appreciate the efforts of all the
participating burgeoning entrepreneurs and can't wait to see what they
do in the future."
Traditionally, the annual tuition for YEA students is around $1,000.
However, due to the generosity of Neighborhood National Bank, Trucknet
LLC, Goodwill Industries of San Diego County, The City of San Diego,
and US Bank, the South County EDC was able to offer the program free
of charge to all students this year.
Jim O'Callaghan, President and CEO of the South County EDC, expressed
his pride in the students' dedication and commitment: "We are so proud
of the effort and commitment shown by our students this year. Having
representation from high schools throughout South County shows the
interest in growing and remaining here locally. As an organization,
we are eager to ensure there's a clear path forward for our next generation
to build businesses, employ people locally, and dream beyond what is
a traditional path."
Thanks to the generosity of our sponsors and the dedication of our
board of directors, the South County EDC was able to offer the program
for free and invest over $4,000 in direct seed funding for the nine
businesses that participated in the program.
Greetings, friends and colleagues.
Every year at this time, the Water Authority Board and staff take
a hard look at how to maintain the health of the region’s water supply
system and the financial health of the agency. The hard truth this
year is that rates are rising at water agencies across the Southwest
due to a variety of factors – and
here in San Diego County we’re not immune.
For instance, we face significant rate increases from all our water
suppliers, rising energy costs and the same inflationary pressures
felt by residents and businesses throughout the nation. We must
also account for millions of dollars in costs no longer recovered
from two local water agencies detaching from our regional delivery
system.
In addition, two consecutive wet winters have led to revenue shortfalls
for the Water Authority and our members. These lower water sales
have created upward pressure on rates. Steps that we’ve taken to
reduce rates through COVID and inflation spikes mean that our savings
are shrinking and we have fewer options to absorb higher costs.
We expect these factors will lead to double-digit rate increases
over the next three years for our member agencies to maintain the
region’s critical water supply reliability. The Water Authority
Board is expected to make a decision on 2025 rates in coming months.
Then, our member agencies will address rates for their residents
and businesses.
Some good news is that the Water Authority is working to balance
rate impacts with a series of proactive steps to mitigate future
rate increases by reducing costs, generating new revenue and providing
maximum value to the region. Just recently, the Water Authority
finalized a water transfer agreement that reduced expenses by $20
million. We are also exploring the sale of desalinated seawater
to Orange County, along with other projects that could reduce expenditures
or enhance revenues to relieve rate pressures mainly driven by
external factors.
It is important to recognize that residents and businesses throughout
San Diego County enjoy one of the most reliable water supplies
in California. Other parts of the state have faced mandatory cutbacks
due to drought in recent years, but our region has avoided any
impact on our economy or quality of life thanks to decades of planning
and investments. Now, we must approach water management differently
by leveraging these investments to benefit our region in new and
creative ways as we prepare for a sustainable future.
We face challenging rate-setting processes in the coming months
and years, but we’re committed to working with our counterparts
throughout the Southwest to begin a new and unprecedented era of
cooperation for water resiliency. Our robust investments can now
support other regions less prepared for drought, and in turn help
address San Diego’s affordability in the long run.
Board members at the Water Authority and our member agencies never
take lightly the decision to raise rates. We take every step possible
before asking our customers to do more. Yet, we know from experience
that a drought-resilient water supply requires ongoing investment,
and we are committed to ensuring our community is prepared for
the future.
Dan Denham
General Manager
San Diego County Water Authority
Your opinion matters! Please take a moment to share your thoughts and
help us strengthen our programs.
Let's build something incredible together.
EPA cordially invites you to one of two events to discuss the ongoing barriers that prevent basic services in many Colonias and other disadvantaged unincorporated communities in the Southwest region.
Wednesday, May 8, 2024 - Thursday, May 9, 2024
9:00 am - 4:00 pm PDT
Benchmarking is the process of reporting a building’s energy use to understand its energy efficiency and identify opportunities to reduce building owner’s energy expenses.
In support of the City of Chula Vista’s Climate Action Plan, the City adopted the Building Energy Saving Ordinance in early 2021.
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The County’s recommended budget for next fiscal year was released Thursday
and it shows what the County is doing to maintain and improve our quality
of life while also helping those who
need it most.
The South County Economic Development Council (SCEDC) is offering valuable
assistance to local manufacturers by providing access to various
resources at no cost.
* Wage Subsidies
* Workforce Development Programs
* Operational Assistance
and more.
South County EDC is a non-profit business organization that partners
with California Manufacturing Technology Consulting (CMTC) to
offer support to the manufacturing companies in
South
San Diego County.
The South County EDC has launched a Resources and Tools for helping NonProfits get various funding and other resources.
More Information
The South County EDC's Business Outreach team extends the invitation
to its board of directors and members to volunteer in our canvassing
efforts. This is a great opportunity to learn more on how we
assist our South County business community.
To sign up please send an email SCEDC@southcountyedc.com.
Do you have a Small Business in need of a loan?
Are you looking to acquire new equipment or
adding employees?
*We won't share your email with third parties.
May 7th, 8AM - 9:30AM
May 15th, 10AM - 11AM
May 15th, 3PM - 4PM
To sponsor or inquire about how to get involved with the South County
EDC just fill out the form below and we will get back to you as soon
as possible.
You can also contact Jim O’Callaghan at 619.424.5143 or email jim@southcountyedc.com
710 E. 16th St
#472
National City , CA 91951
P: (619) 424-5143
Email: SCEDC@SouthCountyEDC.com