UPDATED: San Juan to Hire Del Mar City Manager

Updated at 1:20 p.m. May 10 with more information about Brust's work in Del Mar.

Karen Brust, a certified public finance officer who currently manages the small city of Del Mar, June 30.

Mayor Sam Allevato said in a statement released Tuesday that the City Council selected Brust unanimously from a pool of 80 applicants, primarily due to her extensive dealings with water operations and her financial expertise.

On May 17, the City Council will finalize its three-year contract with Brust for the city manager position. She is set to earn an annual salary of $218,000,. She will, however, pay all of her employee retirement costs.

The city is not releasing a copy of that contract for public review until the agenda for the May 17 City Council meeting is published later this week, spokeswoman Kelly Tokarski said. Brust's predecessor. He earned $324,000 a year, and no benefits.

Since 2007, Brust has managed the city of Del Mar, the tiniest city in San Diego County with a population 4,580. "There are definite parallels between the cities of Del Mar and San Juan Capistrano in terms of historical perspective and a very village-like character and pedestrian-oriented downtown with a charming ambience like none other," Brust said in a statement released by the city.

Before her post in Del Mar, Brust worked for nearly 10 years as the director of finance for the San Diego County Water Authority. She also held director of finance positions for the cities of Gardena and South Gate.

San Juan Capistrano is struggling to get its own water operations in order and in its utilities department.

In Del Mar, Brust has reportedly been instrumental in securing the city's AAA credit rating. On May 2, Fitch Ratings downgraded San Juan Capistrano’s credit rating from AA to A, which it said reflected “a dramatic weakening” of the city's financial profile, including the red ink in its water budgets.

Also in Del Mar, Brust helped the City Council in its controversial attempt to buy for $120 million the Del Mar Fairgrounds—one of the state properties former Gov. Arnold Schwarzenegger intended to sale to close the state’s budget deficit.

In February, Brust told the San Diego Union Tribune that the money to purchase the fairgrounds would come in part from $45 million in bonds issued by a nonprofit it would create to run the county fair. In 2009, estimates showed that the city of Del Mar spent $2 million a year on the fairgrounds while only receiving about $700,000 in return, the Tribune reported.

“It has been a delight to work with Karen, who is always willing to take on new projects [such as the proposed fairgrounds acquisition] with hard work, solid financial understanding, and good cheer,” Del Mar Mayor Don Mosier said in a press release announcing Brust’s departure.

Others called her energetic and an enthusiastic problem solver. “Thanks to her leadership and financial acumen, the city quickly responded to the faltering economy and significantly reduced costs without reducing city services or sacrificing projects,” said former Del Mar Councilwoman Crystal Crawford.

Brust earned $203,460 in 2009 as the city manager in Del Mar, according to data compiled by the state controller’s office.

More information will be posted as it becomes available.

Correction: An earlier version of this article incorrectly stated that Brust is a certified public accountant. She's actually a certified public finance officer through the Government Finance Officers' Association.