The California State Auditor created the Local Government High-Risk Dashboard to report its ranking of 471 California cities from highest to lowest risk of fiscal distress based upon our analysis of certain financial data. We selected a set of 10 indicators that enabled us to assess each city’s ability to pay its bills in both the short and long term. Specifically, the indicators measure each city’s cash position or liquidity, debt burden, financial reserves, revenue trends, and ability to pay for employee retirement benefits. We calculated the financial indicators using data from cities’ audited and publicly available financial statements and from pension-related information obtained from the California Public Employees’ Retirement System and the California State Controller’s Office.
From the State Auditor’s website
When compared to our coastal neighbors, Encinitas received the worst ranking. The only city in North County that scored lower was Escondido.

Countywide, the cities that were ranked as moderate are Chula Vista, El Cajon, La Mesa, Santee, Escondido, Encinitas, Oceanside, and San Diego.
Read the Auditor’s report here.