E N C I N I T A S 1

DECEMBER 2012

E N C I N I TA SB U S I N E S S M A T T E R S

FROM THE PRESIDENT

Happy Holidays!

It is hard to believe that the year is nearly over and 2013 is just around the corner.

The past year has seen a resurgence of new business growth here in North County but also (as in the past) the sad closing of some busi-nesses. Many business owners don’t necessarily use December 31st as their year close…but with the age old tradition of a New Years Resolution, possibly it could be a time for us all to review what we have done this past year and what we chould do in 2013 to increase business

There was a time in the past that simply hanging out your shingle, stating you were “open for busi-ness” was enough. But with today’s level of compe-tition, that exists, that doesn’t necessarily work.

New in business or established for years, all busi-nesses need exposure, which can be in the form of print media advertising, an online campaign or simply networking with other business owners with a soft (but consistent) nudge saying “here I am…this is what I do…what do you do and how can we help one another?”

The Encinitas Chamber of Commerce hosts a Sundowner (or mixer) on the third Tuesday of each month (with the exception of June). The cost to members is only $10 and includes food and beverages and a chance to meet your fellow mem-bers. Bring a guest or come alone. It is a great way to introduce yourself and potential members to the Chamber experience as well as network with others that may need your services. Non-members pay only $15.

Please remember that this is YOUR Chamber of Commerce and we rely on our members to help us build a greater sense of business community, identify emerging leaders, and advocate on behalf of small businesses in Encinitas.

So as we enter into 2013, please renew your member-ships – come and partici-pate and let us know what we can do to assist your business.

Bob GattinellaDirector of the Board

535 Encinitas Blvd. Ste 116Encinitas, CA 92024

Admin@EncinitasChamber.com Phone 760.753.6041

Fax 760.753.6270

2 E N C I N I T A S

FROM CITY HALL

Chamber welcomes new Encinitas City leadersThe Encinitas Chamber of Commerce is pleased to welcome new City of Encinitas Mayor Teresa Barth. Encinitas Barth was selected as the city’s next mayor during a special meeting on Tuesday, December 10th. Barth was first elected to council in 2006.

Chamber leaders and members also welcome newly elected Councilmember Lisa Shaffer who will assume the deputy mayor position. Also sworn in as council-members were Mark Muir and Tony Kranz.

Another change as a result of the November election is the process by which the Encinitas mayors will be chosen in the future. Encinitas has been one of three cities in the county in which the city council has chosen a mayor from among the council members. That process will soon come to an end in favor of having a mayor directly elected by voters. The first election will take place in November 2014,

so the council will still choose a mayor in Novem-ber 2013.

Chamber leaders look forward to working closely with the new administra-tion, advocating for legisla-tion that supports and strengthens the ability for small businesses to survive and thrive in the area.

The 2012 election left us with the same President, same Democratic-controlled Senate, and same Republican-controlled House of Representatives. But 2013 brings several new challenges. That’s because several impor-tant tax provisions are scheduled to expire at the end of the year, in what many observers are calling a “fiscal cliff."

Right now, taxpayers across the country are waiting for Washington to act. The following are four areas to watch closely.

1. The Bush tax cuts are scheduled to expire. If Washington can’t find political agreement to extend them, top rates on ordinary income will return to their previous level, rising from 35% to 39.6%, top rates on capital gains will rise from 15% to 20%, and top rates on qualified dividends will rise from 15% to 39.6%.

2. The current 2% payroll tax “holiday” will end. This will mean as much as $1,000 in additional tax on work-ers earning $50,000 per year.

3. The Alternative Minimum Tax “patch” will expire, subjecting millions more Americans to the AMT.

4. Finally, the Medicare tax provisions of the Afford-able Care Act, or “Obamacare,” take effect. This will

mean an additional 0.9% tax on earned income above $250,000 and a 3.8% tax on investment income for taxpayers earning more than $200,000 ($250,000 for joint filers).

The following summarizes some of the future tax hikes we can expect and offers suggestions for avoiding them where possible.

Tax Brackets Uncertain! If Congress can’t agree to extend the Bush tax cuts, rates will rise automatically in 2013. Traditional tax planning wisdom suggests that if rates are set to rise you should consider timing your income and deduc-tions where possible, for maximum tax advantage.

If you expect to earn less in 2013, consider delaying some of this year’s income (to subject it to tax next year, when you’ll be in a lower bracket). And pay de-ductible expenses this year, as much as you can.

Or, if you expect to earn more in 2013, consider accelerating income from commissions, bonuses, and qualified plan withdrawals into this year (to subject it to tax now, before you move up into a higher bracket next year). You might also delay paying deductible expenses until next year, to the extent possible. continued on page 7

2013 Tax Outlook: Facing the “Fiscal Cliff ”

Top right, Teresa Barth. At right, Lisa Shaffer, Tony Kranz and Mark Muir. Not pictured, Councilmember Kristin Gaspar.

E N C I N I T A S 3

IMPORTANT NEWS FROM SDG&E

Saving money on your energy bill this holiday season is just a few clicks away!Now that you have a smart meter, one way to begin saving is to enroll in SDG&E’s My Account, a one stop shop for all your personal energy information. My Account is home to a new energy management tool where you can go to:

• Get your current bill and a forecasted bill for the month• Review your hourly, weekly or monthly energy use• Analyze your bill to see why it changes• Fill out profiles and surveys for an in-depth analysis of your energy use and costs.• Learn about energy-saving actions that are specific to your business or home

My Account is free service for all SDG&E customers. Simply have your account number handy and visit www.sdge.com/myaccount to enroll and start saving today.

For additional tips on how to start saving right now, visit SDG&E’s website for :• Business Solutions• Residential Solutions

Just one more way that SDG&E is connecting its customers to smart energy solutions

KUDOS TO OUR STARS

Our members in the headlinesEDCO honored for Project Sheppard effortsOn November 30, 2012, the Kris Kringle Golf Tournament honored EDCO for its longtime sup-port of Project Shepherd, a nonprofit organization serving Lakewood residents in need for 40 years. The organization provides food and gifts to more than 500 Lakewood families each holiday season.

Arts Group obtains non-profit statusSan Dieguito Art Guild and Off Track Gallery an-nounced that they obtained their non-profit (501c3) status recently. The Guild is made up of more than 200 local artists and operates a gallery located in the Lum-beryard Shopping Center, as well as offering workshops for the community.

Leucadia 101 Main Street proudly announces its certi-fied California Main Street designationThe Leucadia 101 Main Street Association was formed

in 2003 as a non-profit organization dedicated to the historic preservation and revitalization of Leucadia’s North Highway 101 corridor. As an aspiring Main Street for quite some time, and after a very lengthy and com-prehensive application process that involved research-ing a lot of historical facts, past and present economic development, and their goals they were successful and have been approved!

The designation will allow us to use the terminology as a California Designated Certified Main Street in all their materials as well as the use of all the resources at the state and national Main Street levels.

On November 9th, the California State Historical Resources Commission will recognize Leucadia 101 Main Street’s achievement as the most recent California Main Street community at their quarterly meeting in San Diego. Leucadia 101 Board President William Morrison and Vice President Steve Shackelton will be on hand to receive this award.

4 E N C I N I T A S

One of the benefits of joining the Encinitas Chamber of Commerce is the opportunity to have a ribbon cutting to introduce your business to the community. The ribbon cutting will be publicized with a photo in an eblast and in the chamber newsletter, giving the com-munity a heads up about your business.

Contact the Chamber today to find out how we can help promote your business through a ribbon cutting and other op-portunities!

The Encinitas Chamber wel-comes these new members:

• Greater Encinitas Kiwanis• The Joint• Cruise Planners• The Outgrown Shop• Leu Leu Beauty Bar• Minuteman Press• Michael Fryman Refrigeration

The Encinitas Chamber of Commerce thanks the follow-ing companies for renewing their investment in the com-munity:

• San Dieguito Academy• McDonalds Restaurant• Adam R. Rosenberg, CPA• Brad’s Foreign & Domestic• West Village, Inc.• Heller Real Estate• Vigilucci’s Restaurant Group• El Pollo Loco• Moonlight Cultural Foundation• San Dieguito Art Guild• Business Blossoms• Coldwell Banker-Ruth Broom• Hansen’s Surfboards• Furgerson’s• California Music Studios

We encourage our com-munity members to support Chamber member businesses.

Ribbon Cuttings and Sundowners

E N C I N I T A S 5

Ribbon Cuttings and SundownersIf you don’t attend a Sun-downer, you’ll never know what you are missing.

Sundowers are the chamber’s casual “mixers” hosted at a different business each month, and feature food, beverages, a raffle and best of all, an opportunity to network and socialize.

A great way to get together and meet or reconnect with other community members in a casual atmosphere. Chat with other members and learn about their businesses and share with them about yours or network with them on a project you’re working on.

Bring a friend or associate who may be interested in membership or just in meet-ing new people.

Attended by both chamber members and non-members alike, Sundowners present a wonderful opportunity to meet business people in your community who may be able to use your business or refer you to someone else who needs your services.

Whatever your reason, we’d like you to join us in building and strengthening our com-munity bonds.

Come and enjoy the company and maybe even improve your bottom line.

6 E N C I N I T A S

Low interest rates & prices create great home buying opportunities in EncinitasBy Polly Van Every Rogers

“The cure for anything is salt

water - sweat, tears, or the sea.”

--Isak Dinesen

“The Sea, once it casts its spell, holds one in its net of wonder forever.”

--Jacques Cousteau

The lack of inventory is the current challenge with the Encinitas real estate situation, with less than half the homes listed compared to a year ago. Only 83 houses are currently for sale in Encinitas compared to 43 last month which means that there is less than a two-month supply. A five- to six-month supply is balanced between buyers & sellers. A similar situation exists with condos – eleven sold in November, but there are only 18 for sale now. Bank Owned/REO/foreclosed homes are almost nonex-istent in Encinitas. Of 355 houses & condos that sold in the last six months, only 23 were bank owned. There is only one REO out of 101 total homes for sale. The situation is similar around the County – a great situ-ation for sellers but difficult for buyers. Encinitas is experiencing multiple offers on many of the new listings coming on the market as well as on some older listings, which may indicate that the market has caught up to higher listing prices. So prices are rising. Detached home sales made a significant increase from 25 in November 2011 to 43 in November of this year(which is two more than sold in October of 2012).

November is usually slower than October, and there are fewer homes for sale now than last month.Prices also increased 9.4% over the same timeframe, pushing the average price to $858,960 (down from last month, how-ever, which was $1,097,907). This shows the volatility in the numbers when watching few sales among a diversity of homes.

Recent sales clearly illustrate the diversity of the En-cinitas home market. The highest priced property that sold in November is a 4,893-square-foot, custom-built, hacienda in Olivenhain on two and a half acres that sold for $2,195,000. The lowest priced was a three-bedroom, one-bath home in Leucadia’s Avocado Acres that was built in 1959, which sold for $450,000. Dennis Smith, ABR, SRES, e-PRO, CDPERE/MAX By-the-Sea

Where are the Encinitas Home Sellers?By Dennis Smith

As 2012 comes to a close, signs indicate a continua-tion of a stabilizing real estate market throughout 2013! There are a wide variety of factors that contribute to this trend.

One of the most relevant aspects of the Encinitas real estate market today, is the low number of homes presently available on the market for sale. When compared to the last four years of housing inventory on the multiple listing system, this year has continued to see fewer homes available for sale. This decrease in available housing presents a challenge as we have seen more buyers re-entering the marketplace this year than during the past four years.

Historically low interest rates that provide additional “buying power”, excellent property values, and pent up buyer demand, all have contributed to today’s dramati-cally lower home inventory in 92024.According to the data in our Sandicor Multiple Listing System, 163 homes have closed escrow to date in 92024 alone, there are currently 68 homes in es-crow, and 83 homes currently on the market. These numbers were just the opporsite just a couple of years ago. Our inventory is stabilizing, though, creating more stabilized home prices.

After 37 years of rep-resenting my real estate clients throughout Encinitas & Cardiff, we have experi-enced a variety of market conditions. I am happy to report that today’s market conditions appear to be much more optimistic.

I look forward to sharing additional information on our stabilizing real estate market in future issues of this newsletter.

Polly Van Every RogersAssociate BrokerPrudential Calif. Realty

ENCINITAS REAL ESTATE REPORT

E N C I N I T A S 7

DID YOU KNOW?

You can check out the beach from

home?

You can check conditions at Ponto

Beach 24/7 for surfing, swimming

or just enjoying the beach. Go to

lwwd.org and click on “webcam”

at the bottom of Leucadia Waste

Water District’s home page.

from page 2

Itemized Deductions Going Down? Over the longer term, President Obama has proposed limiting the value of itemized deductions to just 28%, even for taxpayers in higher brackets. Republican candidate Mitt Romney proposed limiting itemized deductions from all sources to a certain fixed number, such as $25,000 or $40,000, and this idea is also gaining favor. Either of these would amount to a “stealth” tax increase and cut the value of deductions for medical expenses, state and local taxes, mortgage interest, and even charitable gifts.

New Tax on Interest Income The healthcare reform act imposes a new “Unearned Income Medicare Contribution” of 3.8%, beginning on January 1, 2013, on interest income, for taxpayers reporting more than $200,000 ($250,000 for joint filers). This tax may make municipal bonds and money market funds more attractive relative to fully taxable vehicles.

New Tax on Dividend Income Tax on “qualified corporate dividends” is currently capped at 15%, even for taxpayers in the highest brack-ets. However, beginning in 2013, the healthcare reform act imposes a new “unearned income Medicare contribu-tion” of 3.8% on dividend income for individuals earning over $200,000 ($250,000 for joint filers).

Consider favoring stocks that pay little or no dividend in taxable accounts and holding stocks paying higher dividends in tax-deferred accounts.

Higher Tax on Capital Gains Tax on long-term capital gains (from property you hold more than 12 months) is currently capped at 15%, even if your regular tax rate is higher. President Obama has proposed letting that rate return to a Clinton-era 20%, for those earning over $200,000 ($250,000 for joint fil-ers). We’ll just have to wait for Washington to act on the “fiscal cliff ” to see where 2013 rates fall. Uncertainty on Estate Tax The estate tax actually “died” for 2010. Washington brought it back to life, with a 35% tax applying on estates over $5.12 million per person. However, the new system applies only for 2011-2012. If Washington doesn’t act to extend it, the tax reverts to 55% on estates over $1.0 million, beginning January 1, 2013. This means that smart, flexible estate planning will still be part of most affluent families’ plans.

Article submitted by member:Jim Barnhart, PhD, MBA, EABarnhart Tax Service

YOUR CHAMBER

Benefits of chamber membership.What else would YOU like to see from YOUR chamber?By Thora Guthrie

The Encinitas Chamber of Commerce is working to ensure that our members get the most out of and understand the return on their investment in chamber membership.

Through your membership, you have the opportunity to gain exposure for your business at networking events, and take advantage of the business services we provide. But you have to be somewhat proactive to take advan-tage of these services.

• Post special events in our events calendar• List business specials in “Hot Deals” on our website• Post job openings on the Job Board• Have the chamber post special promotions in our weekly e-blasts.• Place an ad in the monthly newsletter• Write an informative article for the newsletter• Attend a Sundowner to meet other chamber members, socialize and network• Become a chamber ambassador• Volunteer on a committee or even start an important committee to address community issues

• Display your company literature at the chamber office• Link your email and website through the chamber’s website

We are loyal to our members - referring newcomers and businesses to our members and doing business with the members only. We act as a referral service for our members and always give loyalty by referring to member businesses.

The benefits of becoming a member of this growing, dy-namic organization are tangible and intangible, personal and professional. If you are not a member, join now! Promote your business!

What additional services or programs would you like to see the Encinitas Cham-ber of Commerce offer our members?

Let us know through an email or by calling the chamber office at 760-753-6041.

Promote Your Business

Advertise in

Business Matters

For Information

and rates,

call the

chamber office

760-753-6041

8 E N C I N I T A S

SANDAG (San Diego Association of Governments) and Caltrans have partnered to develop the Transportation Demand Management (TDM) plan to improve traffic congestion on Interstate 5 by providing attractive transportation alternatives that reduce the number of solo driving trips on and around the freeway.

The TDM plan includes strategies and programs that manage and reduce traffic congestion by encouraging the use of trans-portation alternatives such as walking, biking, transit, carpooling, vanpooling, flexible work schedules and teleworking. These programs reduce overall vehicle miles traveled making more efficient use of the existing transportation network.

iCommute is one easy and secure gateway to commute choices in the area, providing information, resources, and tools needed to leave behind a solo commute.

RideMatcherRideMatcher is a secure, confidential online database connecting thousands of commuters looking for carpool, vanpool, biking, or walking partners – matching up f riends, neighbors, and co-workers who live, work, and commute in the same communities.

TripTrackerTripTracker will allow you to log any type of alternative com-mute and instantly see your cost savings nd the benefit to the environment compared to driving alone.

Guaranteed Ride HomeNow, commuters who carpool, vanpool, take a Premium or Ex-press Bus, ride the COASTER, walk or bike to work have a built-

in safety net. Enroll in advance, and if you get stuck, Guaranteed Ride Home program will get you home with just a $3 co-pay.

iCommute also provides free assistance to San Diego regional businesses in establishing and implementing customized em-ployee commuter benefit programs. Lower costs, increase productivity and morale, and demonstrate social and environ-mental responsibililty.

For more information visit 511sd.com/iCommute, call 511 toll-free and say “iCommute.”

REDUCE YOUR COMPANY’S CARBON FOOTPRINT & HELP YOUR EMPLOYEES

Change the world one commute at a time

THANK YOU TO OUR PREMIER SPONSORS Recycle Your “FOG”

(Holiday Cooking Fat, Oil and Grease)

During the holiday season, a thought to consider is what to do with kitchen fat, oil and grease (FOG) that’s left over from all that cooking or after deep frying a turkey. For interested residents, EDCO has a free, safe and more environmentally friendly option for disposing of household FOG.

Residents are asked to simply collect used discarded FOG in a leak-proof container and drop it off free of charge at one of EDCO’s conveniently located Buyback Centers. The FOG will then ultimately be processed, filtered and converted into bio-diesel by a third party processor.

It is important that participants do not mix FOG with any other oils, such as motor oil or gear oil, that inhibit the process of converting the FOG into biodiesel.

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An affordable and easy way to get your business name into the community

ADVERTISE IN BUSINESS MATTERS

760-753-6041