C I T Y O F C A R L S B A D ,
BUDGET Operating Budget Capital Improvement Program Strategic Digital Transformation Investment Program
C A L I F O R N I A
FY 2026-27
Budget preparation team Finance team
Zach Korach, Finance Director Brigid Satterlee, Finance Manager Jeremy Bates, Senior Management Analyst Bridget Desmarais, Management Analyst
Leadership team
Geoff Patnoe, City Manager Cindie McMahon, City Attorney Sheila Cobian, Assistant City Manager Jeff Murphy, Deputy City Manager, Community Services Paz Gomez, Deputy City Manager, Public Works Laura Rocha, Deputy City Manager, Administrative Services Christie Calderwood, Chief, Police Department Mike Calderwood, Chief, Fire Department Maria Callander, Director, Information Technology Amanda Flesse, Director, Utilities Tom Frank, Director, Transportation Jason Haber, Director, Intergovernmental Affairs, Office of the City Manager Zach Korach, Director, Finance Kyle Lancaster, Director, Parks & Recreation Faviola Medina, Director, Constituent & Clerk Services Mandy Mills, Director, Housing & Homeless Services Laura Rocha, Interim Director, Human Resources Tess Sangster, Director, Economic Development Suzanne Smithson, Director, Library & Cultural Arts Mike Strong, Director, Community Development Amy Ventetuolo, Director, Communication & Engagement James Wood, Jr., Director, Environmental Sustainability
Department budget preparers & advisors Rosario Aranda, Environmental Sustainability Deborah Baird, Fire Department Fiona Everett, Library & Cultural Arts Lindsey Hansen, Communication & Engagement Chad Kantner, Parks & Recreation John Maashoff, Fleet & Facilities Rachel Maltz, Economic Development Kayla Mauro, Finance Roxanne Muhlmeister, Finance Bradley Northup, Fleet & Facilities Ana Palomo-Zerfas, Utilities Megan Powers, Public Works Administration Kim Riboni, Finance Katie Schroeder, Office of the City Treasurer Flora Waite, Office of the City Attorney Tom Zetz, Fleet & Facilities
Conrad Avila, Finance Pat Downie, Office of the City Clerk Brent Gerber, Information Technology Emily Hasegawa, Construction Mgmt. & Inspection Sarah Lemons, Communication & Engagement Lovelynne Magalued, Transportation Jennie Marinov, Fire Department Debbie Jo McCool, Library & Cultural Arts Jessica Mussman, Human Resources Robin Nuschy, Office of the City Attorney Debbie Porter, Human Resources Haley Quincey, Housing & Homeless Services Laureen Ryan, Community Development Amanda Simpson, Police Department Marsha Weeks, Parks & Recreation
TABLE OF CONTENTS INTRODUCTION
City Manager’s transmittal letter .................................................................................................A-1 Readers guide ...............................................................................................................................A-5 Budget process .............................................................................................................................A-6 5-Year Strategic Plan ....................................................................................................................A-8 Annual workplan ..........................................................................................................................A-9 Community engagement ..............................................................................................................A-11 About Carlsbad .............................................................................................................................A-13 Organization chart........................................................................................................................A-22 Fiscal issues & financial management ..........................................................................................A-23 Financial management policies ....................................................................................................A-26 Appropriation limit .......................................................................................................................A-31 Debt management .......................................................................................................................A-32 Basis of budgeting ........................................................................................................................A-34 Budgetary fund structure .............................................................................................................A-35 Budget awards .............................................................................................................................A-37
OPERATING BUDGET
Overview ......................................................................................................................................B-1 Revenue .......................................................................................................................................B-2 Expenditures ................................................................................................................................B-13 Personnel allocations ...................................................................................................................B-22 Schedule of projected fund balances ...........................................................................................B-23 Schedule of revenue estimates ....................................................................................................B-25 Schedule of budget expenditures ................................................................................................B-31
PUBLIC SAFETY
Summary ......................................................................................................................................C-1 Organization chart........................................................................................................................C-2 Fire Department ...........................................................................................................................C-3 Police Department .......................................................................................................................C-9
PUBLIC WORKS
Summary ......................................................................................................................................D-1 Organization chart........................................................................................................................D-2 Public Works Administration........................................................................................................D-3 Construction Management & Inspection .....................................................................................D-5 Environmental Sustainability .......................................................................................................D-7 Fleet & Facilities ...........................................................................................................................D-14 Transportation .............................................................................................................................D-19 Utilities .........................................................................................................................................D-26
COMMUNITY SERVICES
Summary ......................................................................................................................................E-1 Organization chart........................................................................................................................E-2 Community Services Administration ............................................................................................E-3 Community Development ............................................................................................................E-5
Housing & Homeless Services ......................................................................................................E-16 Library & Cultural Arts ..................................................................................................................E-26 Parks & Recreation .......................................................................................................................E-35
ADMINISTRATIVE SERVICES
Summary ......................................................................................................................................F-1 Organization chart........................................................................................................................F-2 Administrative Services Administration .......................................................................................F-3 Economic Development ...............................................................................................................F-5 Finance .........................................................................................................................................F-7 Human Resources ........................................................................................................................F-9 Information Technology ...............................................................................................................F-16 Miscellaneous Non-Departmental ...............................................................................................F-18
POLICY & LEADERSHIP
Summary ......................................................................................................................................G-1 Organization chart........................................................................................................................G-2 Office of the City Council..............................................................................................................G-3 Office of the City Treasurer ..........................................................................................................G-5 Office of the City Manager ...........................................................................................................G-7 Office of the City Attorney ...........................................................................................................G-9 Office of the City Clerk .................................................................................................................G-11 Communication & Engagement ...................................................................................................G-13
STRATEGIC DIGITAL TRANSFORMATION INVESTMENT PROGRAM
Overview ......................................................................................................................................H-1 Investing in digital transformation ...............................................................................................H-2 Project evaluation ........................................................................................................................H-2 Strategic Digital Transformation Investment Program projects ..................................................H-4 Estimated total appropriations by goal ........................................................................................H-6 Projects to pursue communitywide digital transformation .........................................................H-8 Projects to build capacity for data-driven decision making .........................................................H-12 Projects to foster a vibrant civic engagement culture .................................................................H-12 Projects to enhance accessibility and transparency ....................................................................H-13 Projects to promote security and sustainability through connectivity ........................................H-14 Minor projects ..............................................................................................................................H-19 Future projects .............................................................................................................................H-19 Detail five-year schedule of projects by Connected Carlsbad goal ..............................................H-21 Detail five-year schedule of projects by fund ..............................................................................H-22 Project funding sources ................................................................................................................H-23 Projected fund balances ...............................................................................................................H-23 Revenue projections schedule .....................................................................................................H-24 Budget expenditure schedule ......................................................................................................H-24 Project estimated operational requirements...............................................................................H-25 Fiscal year 2026-27 roadmap .......................................................................................................H-26 Five-year roadmap .......................................................................................................................H-27
CAPITAL IMPROVEMENT PROGRAM
Overview ......................................................................................................................................I-1 Investing in our quality of life.......................................................................................................I-1 Project evaluation ........................................................................................................................I-2 Fiscal year 2026-27 appropriations ..............................................................................................I-3 New capital improvement projects ..............................................................................................I-6 Capital Improvement Program revenues .....................................................................................I-7 Future growth and development .................................................................................................I-8 Future projects .............................................................................................................................I-9 Calculation of future fees .............................................................................................................I-10 Unfunded projects .......................................................................................................................I-10 Projected fund balances for fiscal year 2025-26 ..........................................................................I-11 Projected fund balances for fiscal year 2026-27 ..........................................................................I-12 Revenue projections schedule .....................................................................................................I-13 Budget expenditure schedule ......................................................................................................I-14 Project estimated operational requirements...............................................................................I-15 Five-year Capital Improvement Program Strategic Plan projects ................................................I-17 Five-year Capital Improvement Program critical need projects ..................................................I-19 Five-year Capital Improvement Program enterprise projects......................................................I-20 Five-year Capital Improvement Program maintenance projects .................................................I-23 Substantially complete (closeout) projects ..................................................................................I-25 Project accounting .......................................................................................................................I-25 Program adjustments ...................................................................................................................I-26 Requested appropriation summary .............................................................................................I-27 Capital Improvement Program 15-year forecast by fund ............................................................I-29 Glossary of capital project funding sources .................................................................................I-40
APPENDICES
Planned major capital outlay items fiscal year 2026-27 ..............................................................J-1 General Fund asset replacement schedule ..................................................................................J-2 Fund classifications and descriptions ...........................................................................................J-3 Department/fund relationship .....................................................................................................J-8 Glossary ........................................................................................................................................J-10 Acronyms .....................................................................................................................................J-13 Budget communications ..............................................................................................................J-16 General Fund forecast ..................................................................................................................J-21 Resolutions adopting the budget .................................................................................................J-42
Dear City Council: As we begin the 2026-27 fiscal year, Carlsbad’s balanced budget focuses on maintaining high levels of service for the community, completing major capital improvement projects, and investing in public safety and core infrastructure — all while preserving long-term fiscal stability. Budget overview Preparing the annual budget is one of the most important responsibilities of the City Manager. In Carlsbad, this work is continuous. Shortly after the City Council adopts each budget, staff begin the process again, working collaboratively across departments to evaluate priorities, identify service needs and operational pressures, and ensure resources are focused where they matter most. This year’s budget once again reflects that disciplined and thoughtful approach. It is grounded in the City Council’s longstanding commitment to fiscal responsibility, strong financial policies and long-term planning practices that have positioned Carlsbad well for our future. The General Fund Operating Budget totals $249.4 million, a 2.9% increase over last year. Despite continued economic uncertainty, this marks the second consecutive year that the increase in the city’s General Fund budget has remained below the regional inflation rate of 3.8%. At the same time, the city continues to maintain a AAA credit rating, healthy reserves and a balanced budget. While Carlsbad’s financial position remains strong, we are beginning to see some revenues level off — particularly in sales tax — as inflationary pressures and lower consumer confidence persist. For that reason, this budget reflects a cautious approach, holding the line on spending where possible while continuing to invest strategically in the services and infrastructure our community relies on every day. Focused on delivering results A central theme of this year’s budget is progress; delivering on commitments, completing projects and ensuring that resources are focused on outcomes rather than expanding an ever-growing list of future efforts.
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In addition to advancing key projects, staff evaluated previously planned efforts to determine whether they still align with current City Council priorities and community needs. Where appropriate, projects have been paused, refined or reimagined to ensure the most effective use of public funds. As our city continues to age, so does much of our core infrastructure. That’s why many of the key investments proposed this year continue to focus on infrastructure to make sure the foundation of the city remains strong. Investing in what matters most The adopted budget continues targeted investments in public safety, infrastructure, sustainability and community amenities, aligned with the City Council’s 5-Year Strategic Plan goals. Key investments include: Public safety and quality of life • Full funding for the Community-Oriented Policing and Problem-Solving (COPPS) team • Continued enhancement of fire response through the reclassification of six EMTs to Paramedic Firefighters • Authorization of $295,000 to advance Phase 2 of the Wildfire Mitigation Plan, which includes the development of a Community Wildfire Protection Plan with expanded programs and community outreach • Launching a multi-year effort to replace and upgrade traffic detection equipment at various intersections to improve traffic flow • Funding for additional all-way stop sign analysis to respond more quickly to resident requests • El Camino Real widening between Arenal Road and La Costa Avenue • Completion of beach stairs replacement and sidewalk widening along Carlsbad Boulevard between Pine Avenue and Tamarack Avenue • Approval of $2.14 million from the city’s Capital Improvement Program budget to resume the cost analysis to evaluate design options and estimate construction costs for a new segment of College Boulevard from Sunny Creek Road, just east of El Camino Real, to Cannon Road near Sage Creek High School • Backup power infrastructure for the city’s Safety Training Center
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Community character and connection • Construction of Veterans Memorial Park, a 93.7-acre community asset that will include spaces to honor veterans, family-oriented amenities and more than half the site preserved as protected habitat • Funding to support ongoing maintenance with an additional pool maintenance employee along with additional part-time Lifeguards for the newly renovated Monroe Street Pool, which is anticipated to reopen later this year • Continuation of seven-day-a-week library service for expanded community access • Construction of a segment of the Coastal Rail Trail and pedestrian improvements along Avenida Encinas Sustainability • • •
• •
Investment of $5 million in stormwater infrastructure for flood and pollution prevention Expansion of energy-efficient lighting and electric vehicle charging infrastructure Continuation of the replacement of the city’s fleet vehicles with the purchase of four electric and 14 hybrid vehicles in the next fiscal year, bringing the total number of city vehicles that are electric or hybrid vehicles to 177 Addition of electrical vehicle charging stations at the State Street parking lot Replacement of non-functional grass at city properties with drought-tolerant landscaping to reduce water use
Organizational excellence • Continue funding city operational infrastructure and technology systems to modernize and ease service delivery to residents and employees • Addition of building inspections to the city’s online permit portal so customers can easily view building inspection history and schedule building inspections online Capital improvement progress The city continues to make strong progress on finishing capital improvement projects. With several projects completed on time and under budget in the past year, the city was able to return approximately $4.8 million to the city’s capital funds. The project list has also been refined to remove projects that are no longer necessary or feasible, ensuring resources remain focused on the community’s highest priorities and long-term needs. Strategic Digital Transformation Investment Program As technology continues to shape how cities operate, Carlsbad is investing in smarter, more connected systems. The Strategic Digital Transformation Investment Program is a comprehensive approach to planning for and funding digital transformation efforts throughout the city. This program advances efficiency, security and transparency while enabling more data-informed decision-making across city operations.
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General Fund reserve The city’s General Fund reserve remains strong at 60%, or $150.8 million, well above the City Council’s policy to maintain the equivalent of 40% of the annual General Fund Operating Budget in a reserve account. This level of reserve provides critical protection during economic downturns and ensures the city can continue to meet community needs during times of uncertainty. Looking ahead While broader economic conditions remain uncertain, Carlsbad is well-positioned to adapt. This is a measured, responsible and forward-looking budget — one that delivers on commitments, prioritizes core services and infrastructure, and maintains the city’s longterm fiscal health. As we enter the new fiscal year, we remain focused on delivering on City Council goals and the commitments we have made to our community. Thank you to the City Council for your continued leadership and commitment to responsible financial stewardship. Together, we are ensuring Carlsbad continues to thrive today and into the future. Sincerely,
Geoff Patnoe City Manager
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I N TROD UC TION The annual budget is the most significant expression of how City Council policies are translated into daily operations. In this document, you will see where the city gets the money it uses to carry out its mission and how that money will be spent during the fiscal year that begins July 1, 2026. More than a spending plan, the annual budget is also intended to provide a window into the complex and dynamic economic environment within which your local government operates. As such, this document reviews local, state and national trends affecting city finances, as well as demographic information, regulations and policies that affect how, when and where the city invests resources.
REA DERS GU ID E Some of the information included in this budget document is required by state law. Other details are provided for context and transparency. More than anything, city staff have prepared this budget to serve as a practical guide and tool for ensuring the City of Carlsbad lives up to its standard of being the best run government, period. The following information is included in the four main sections of the budget:
Introduction • • • • •
Information about the city, its size, its demographics, the city government structure and other background How the budget is prepared and approved Input city staff received from the public and how it has been incorporated into city spending priorities The economic and fiscal issues facing the city Financial management policies
Operating Budget • • •
An overview of where the city gets the money (“revenue”) to fund daily operations A big picture summary of city staffing levels, spending broken out into different categories and other aggregate information Detailed budgets for all city functional areas
Strategic Digital Transformation Investment Program •
• •
Major city digital transformation projects (online permitting, records management system, police computer aided dispatch system, hardware and software, security strategy, etc.) included in this year’s budget How projects are identified and prioritized Sources of funding and long-term plan
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Capital Improvement Program • • •
Major city construction projects (roads, water and wastewater systems, parks, etc.) included in this year’s budget How projects are identified and prioritized Sources of funding and long-term plan
B UD GE T PRO CESS The City Council sets the overall policy direction for the City of Carlsbad and helps staff prioritize programs, projects and services to support that direction. Public input plays a critical role in setting both the long-range policy direction of the city and decisions about day-to-day spending. The city operates on a fiscal year that begins July 1. City staff in all departments prepare individual budgets for their functional areas. These budgets are then combined into an overall city budget that is presented to the City Council each spring for review and input. The City Council has the authority to approve the annual budget and may amend it during the year if needed. The legal level of budgetary control is at the fund level, which means spending in each different type of fund may not exceed the budgeted amount without City Council approval. Additional information regarding the budgetary controls can be found in the resolution approving the annual operating budget in the appendices.
December Finance Department staff hold meetings with departments to discuss budget goals and timelines for the upcoming fiscal year. Finance Department staff also prepare base budgets for each department during this time based on prior fiscal year appropriations.
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January City staff hold a budget kick-off meeting to discuss priorities for the upcoming budget cycle, any changes to the budget process compared to last fiscal year and the calendar for submission of required budget forms. Departments begin developing their budget submissions based on the base budgets provided by the Finance Department and their needs and budget guidelines for the new fiscal year.
February Departments provide their budget submissions to the Finance Department. These submissions include any requests departments make to amend their budgets, along with general information about existing personnel allocations and budget for professional and outside services. Finance Department staff review submissions, analyze requested budgets and work with departments to make any necessary changes.
March Departments present their budgets, including significant changes and requests for new funding, to the City Manager. Departments submit estimates for current fiscal year-end revenues and expenditures to Finance.
April Based on meetings with individual departments, the City Manager decides the budget that will move forward for City Council consideration. Finance Department staff prepare the preliminary budget document.
May Staff present the preliminary budget to the City Council for consideration. After this public meeting, staff amends the preliminary budget document for any City Council-directed changes. City staff also hold a public budget workshop to discuss the preliminary budget with the community and answer questions about it.
June At a public hearing, staff present the final proposed budget to the City Council for consideration and adoption.
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5 - YEAR S TRA TE GIC PLAN The City of Carlsbad is guided by a 5-Year Strategic Plan, which was adopted by the City Council in 2022. The plan serves as a road map during the budget process by identifying specific, measurable objectives to be achieved during the five-year timeframe. The plan was developed by working closely with the community to identify a vision for the Carlsbad community, strategic plan goals and project priorities. The community will continue to be engaged in refining specific projects and initiatives within the strategic plan as it is implemented. This input is also incorporated into the annual budget process.
2023-2027 Strategic goals
The 5-Year Strategic Plan includes high level goals, objectives, projects and service commitments that support the Carlsbad Community Vision.
Core services
The city fulfills its purpose and supports the 5-Year Strategic Plan goals every day by providing core services and functions of municipal government at a very high level of quality. From a resource perspective, these ongoing services represent the vast majority of the city’s annual budget.
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AN NUA L WORK PLAN Specific work plans and resource allocations to support the 5-Year Strategic Plan are developed each year and included in each department’s budget. Some of the key initiatives, projects and services that support strategic plan goals in the fiscal year 2026-27 budget include:
• •
•
• • •
• • • • • • • • •
Funding to support ongoing maintenance with an additional pool maintenance employee along with additional part-time Lifeguards for the newly renovated Monroe Street Pool, which is anticipated to reopen in late summer 2026. Construction of Veterans Memorial Park. The 93.7-acre site will honor veterans for their service and celebrate the site’s natural beauty and views. It will feature family-oriented amenities and minimize environmental impacts by maintaining over half of the land as protected habitat. Construction of a one-mile segment of the Coastal Rail Trail and pedestrian improvements along Avenida Encinas between Palomar Airport Road and the Poinsettia Coaster Station. Analysis of converting parallel parking spaces to diagonal parking along several streets in the Barrio to increase on-street parking. Continue work on an updated growth management plan. Maintain 7 day-a-week library services and hours that began mid 2025 with the return of Sunday hours.
Launching the new community-oriented policing and problem-solving team (COPPS team) approved by the City Council on March 24, 2026. Continue the multi-year effort begun in fiscal year 2025-26 to enhance fire emergency response by reclassifying an additional six EMTs to Paramedic Firefighters. Continue wildfire mitigation efforts with the development of a Community Wildfire Protection Plan with expanded programs and community outreach. Complete beach stairs replacement and sidewalk widening along Carlsbad Boulevard between Pine and Tamarack Avenue. El Camino Real road widening between Arenal Road and La Costa Avenue. Launching a multi-year effort to replace and upgrade traffic detection equipment at various intersections to improve traffic flow. Funding for additional all-way stop sign analysis to respond more quickly to resident requests. An emergency backup generator for the city’s Safety Training Center. Implement the city’s Homelessness Action Plan to help address homelessness in Carlsbad and its effects on the community.
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• • •
• • • •
• • • • •
• • • • • •
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New energy-efficient pedestrian lighting in the Village. Invest $5 million into the city’s Stormwater Program for flood and pollution prevention and infrastructure maintenance. Continue the replacement of the city’s fleet vehicles with the purchase of four electric and 14 hybrid vehicles in the next fiscal year, bringing the total number of city vehicles that are EV or hybrid to 177. Addition of electrical vehicle charging stations at the State Street parking lot. Replacement of non-functional, non-recreational natural grass at several city properties with drought tolerant landscaping to reduce water use and maintenance costs. Maintain the city’s 6,200 acres of habitat preserves. Continue to implement sustainable materials management programs, including organics recycling and reducing use of single use plastics.
Continue small business workshop series in partnership with the Carlsbad Chamber of Commerce. Utilize the Life in Action website to help streamline the connection between employers and qualified candidates to find employment opportunities in Carlsbad. Connect with top employers across key industries in Carlsbad’s economy to support growth and expansion efforts. Continue to offer small business office hours to support the long-term viability of small businesses, startups and entrepreneurs in partnership with local and regional collaborators. Launch the city's first site selector tool to provide a comprehensive database of property locations to individuals looking to start, grow or expand their business.
Continuing to fund city operational infrastructure and technology systems to modernize and ease service delivery to residents and employees. Adding building inspections to the city’s online permit portal so customers can easily view building inspection history and schedule building inspections online. Streamline operations by consolidating the city’s core IT systems to improve efficiency associated with operating many different systems with different vendors. Expand the software platform for managing affordable housing, handling records, automating business processes and conducting data analytics. Foster a culture of continuous improvement that equips the organization to deliver excellent service to the community. Attract and retain a talented, diverse and engaged workforce.
• • • •
Maintain CalPERS funded status of 80% or greater (Council Policy No. 86) Continue work on project plans for the Orion Center (centralized public works yard) and Public Works storage facility and evidence storage building for the Police Department. Implement a modern Police Department case records management system, Computer Aided Dispatch system and a real-time crime center to support public safety operations. Complete upgrade to library Radio Frequency Identification system for automated checkouts/returns.
C OMM UNI TY E NGA GE MEN T The City of Carlsbad is guided by two documents built on extensive feedback from the community: • •
Carlsbad Community Vision City Council 5-Year Strategic Plan
The Carlsbad Community Vision was first developed over 10 years ago through an 18-month public engagement process. Since that time, the city has checked in with the community every few years to validate the nine core values that make up the community’s vision for the future. While areas of emphasis have shifted based on current events, the economy and other factors, the values have stood the test of time.
Strategic planning input process
In 2021, the City Council decided to develop a 5-Year Strategic Plan to focus on building momentum on its highest priority goals. Previously, the City Council developed goals annually, often causing new goals to be added to the list before the previous year’s goals could be completed. As a result, progress could be slowed as staff’s efforts were spread among too many competing priorities. The City Council chose five main areas of focus within the Community Vision, based on input received from the community. Then, the public was invited to share their ideas and priorities within each area. This public engagement process yielded the largest amount of community input since the city launched a formal community engagement program in the early 2000s.
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Fiscal year 2026-27 represents the last full fiscal year under the current 5-Year Strategic Plan. Planning and community engagement to develop a new plan will begin during fiscal year 2026-27.
Ongoing input
The city continues to engage the community on specific projects and initiatives within the strategic plan. Input gathered during fiscal year 2025-26 that helped shape decisions reflected in the fiscal year 2026-27 budget included: • • • •
Hundreds of comments emailed from community members. More than 3,500 mailers to notify residents about input opportunities. More than 1,200 surveys completed by community members. Public workshops, online surveys and other engagement for specific projects: o Barrio public art traffic circle o Barrio traffic calming o Carlsbad Reads Together o Chestnut I-5 underpass public art o Enhanced e-bike safety laws o New all-way stops o Safe Routes to School o Terramar area coastal improvements o Traffic calming projects on Celinda Drive and Anillo Way o Veterans Memorial Park public art o Ad-Hoc City Council Veterans Memorial Park Veterans Recognition Subcommittee o Tribal, Cultural and Paleontological Guidelines o Village & Barrio parking improvements
Budget input
Finally, the city also sought input on the budget itself through a public workshop, public meetings, social media and other channels. A list of these efforts can be found in the appendices.
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CARLSBAD, CALIFORNIA The City of Carlsbad is situated in north San Diego County where a great climate, beautiful beaches and lagoons, and abundant natural open space combine with world class resorts, family attractions, wellplanned neighborhoods, a diverse business sector and a charming village atmosphere to create the ideal California experience.
Our History
Named for a famed 19th Century European spa whose mineral springs were found to be remarkably similar to those found here, the City of Carlsbad’s history reflects the heritage of many cultures. The shoreline of the city’s Agua Hedionda Lagoon was home to the indigenous Luiseño and Diegueños Indians for centuries before the arrival of the Spaniards. The area known today as Carlsbad was once a territory of Spain and then Mexico. The City of Carlsbad was incorporated in 1952 and today is home to more than 100,000 people. Guided by an award-winning growth management plan approved by voters in 1986, the City of Carlsbad has matured into a well-rounded community where parks, roads and other infrastructure have kept pace with development. Now that the period of rapid growth is coming to an end, the city is focused on sustaining an excellent quality of life for residents and continuing to foster a strong sense of community.
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CITY GOVERNMENT The City of Carlsbad is a municipal corporation following the council-manager form of government. The City Council, the city’s legislative body, defines the policy direction of the city. The City Manager oversees the day-to-day operations of the city. The City of Carlsbad also has an elected City Clerk and City Treasurer.
Districts The City Council consists of an elected Mayor and four elected council members. Each serves a four-year term. In 2017, the city switched to a system where City Council members are elected by district instead of at large or citywide. District boundaries were updated following the 2020 Census.
Charter City There are two types of cities in California: charter and general law. Charter cities follow the laws set forth in the state’s constitution along with their own adopted “charter” document. General law cities follow the laws set forth by the state legislature. In 2008, City of Carlsbad residents voted to approve the charter city measure, Proposition D, by 82%. The charter gives the City of Carlsbad more flexibility on such issues as purchasing and contracting, because the process mandated by the state can be expensive and cumbersome, causing project delays. Certain affairs, such as traffic and vehicle regulation, open and public meetings laws, some planning and environmental laws, and eminent domain, remain matters of state authority even as a charter city.
Boards and Commissions
The City Council appoints members to a variety of boards and commissions, which provide opportunities for community engagement and recommendations to the City Council. Agricultural Conversion Mitigation Fee Committee Arts Commission Community-Police Engagement Commission Environmental Sustainability Commission Historic Preservation Commission Housing Commission Investment Review Board
Library Board of Trustees Parks & Recreation Commission Planning Commission Senior Commission Traffic Safety & Mobility Commission
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DEMOGRAPHICS
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BUSINESS SECTOR Top Employers Name
Industry
Employees
Viasat Legoland California Thermo Fisher Scientific Carlsbad Unified School District Ionis Pharmaceuticals Omni La Costa Resort & Spa Genmark Diagnostics City of Carlsbad Gemological Institute of America Park Hyatt Aviara
Information Technology Hospitality and Tourism Life Sciences Education Life Sciences Hospitality and Tourism Life Sciences Government Research and Education Hospitality and Tourism
3,273 2,000 1,982 1,152 1,028 900 822 802 772 704
Top Industries
As of July 2026
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Top Sales Tax Generators* Apple Stores Autonation Hyundai Carlsbad Autonation Mazda Carlsbad Autonation Subaru Carlsbad BMW of Carlsbad Chevron Costco Wholesale Financial Services Vehicle Trust Hoehn Honda Certified Used Cars Invitrogen Jaguar/Land Rover Carlsbad Ken Grody Dixon Ford
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Legoland California Lexus Carlsbad Lowe’s Home Centers Mercedes Benz of Carlsbad Omni La Costa Resort & Spa Park Hyatt Aviara Premier Cadillac/Buick/GMC of Carlsbad Premier Chevrolet of Carlsbad Premier Kia of Carlsbad Tesla Motors Toyota Carlsbad Vons Grocery Company *Alphabetical order.
HOW CARLSBAD COMPARES The table below shows General Fund revenue comparisons with neighboring jurisdictions for fiscal year 2026-27 adopted budgets. Population estimates for 2026 and total General Fund budgets are included for additional context. Population (2026 est.)
General Fund Budget
Carlsbad
115,867
$249,391,083
El Cajon
104,932
$107,411,908
Encinitas
62,193
$113,106,924
Escondido
152,196
$176,600,070
National City
58,701
$79,711,593
Newport Beach
82,306
$348,389,578
Oceanside
174,027
$265,049,536
San Clemente
62,636
$94,359,900
San Marcos
97,554
$103,868,683
Vista
101,365
$131,797,091
% % % % % % % % % %
Property Tax
Sales Tax
Hotel Tax*
Building Permit Fees
42.0%
22.0%
14.4%
0.8%
$903.79
$474.87
$310.03
$17.26
28.2%
44.8%
2.6%
1.8%
$280.45
$445.59
$25.73
$18.06
62.6%
14.1%
5.0%
2.1%
$1,224.11
$276.82
$98.43
$40.20
23.2%
46.7%
1.5%
1.4%
$271.65
$546.30
$17.08
$15.92
16.5%
56.1%
2.6%
0.7%
$214.64
$729.94
$34.07
$8.69
48.8%
14.2%
11.6%
1.1%
$2,074.15
$604.37
$494.28
$46.17
38.6%
12.3%
6.7%
1.5%
$581.04
$184.76
$100.90
$21.95
55.5%
14.5%
3.7%
0.8%
$787.96
$206.33
$52.69
$10.90
34.3%
20.9%
1.9%
0.6%
$365.78
$222.61
$19.76
$6.82
30.1%
27.7%
1.9%
3.0%
$391.81
$360.55
$24.17
$39.32
*Transient occupancy tax Per capita
%
Percent of General Fund revenue
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2026-27 Revenue Per Capita Comparisons Property tax $-
$200
$400
$600
$800
$1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200
$2,074.15
Newport Beach
$1,224.11
Encinitas
$903.79
Carlsbad
$787.96
San Clemente
$581.04
Oceanside Vista
$391.81
San Marcos
$365.78
El Cajon
$280.45
Escondido
$271.65
National City
$214.64
Sales tax $-
$100
$200
$300
$400
$500
$600
$729.94
National City
$604.37
Newport Beach
$546.30
Escondido
$474.87
Carlsbad
$445.59
El Cajon
$360.55
Vista
$276.82
Encinitas San Marcos San Clemente Oceanside
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$700
$222.61 $206.33 $184.76
$800
Transient occupancy tax $-
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
$494.28
Newport Beach
$310.03
Carlsbad Oceanside
$100.90
Encinitas
$98.43 $52.69
San Clemente
$34.07
National City El Cajon
$25.73
Vista
$24.17
San Marcos
$19.76
Escondido
$17.08
Building permit fees $-
$5
$10
$15
$20
$25
$30
$35
$40
$40.20
Encinitas
$39.32
Vista
$21.95
Oceanside El Cajon
$18.06
Carlsbad
$17.26 $15.92
Escondido
$10.90
San Clemente
San Marcos
$50
$46.17
Newport Beach
National City
$45
$8.69 $6.82
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A-22
FISCAL ISSUES & FINANCIAL
MANAGEMENT
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E CONOM IC AN D F IS CA L I SS UES FAC IN G THE C I TY At the time of developing the Fiscal Year 2026-27 Proposed Budget, much of the lingering effects of the unprecedented inflationary levels experienced since 2021 have diminished. The Federal Reserve’s swift action to combat the rise in inflation by increasing interest rate targets stabilized inflationary levels through 2025; however, geopolitical tensions have created market uncertainties and driven the price of oil to extreme highs which has reversed inflationary cooling. Growth in key activity indicators such as hiring, commercial leasing, and housing momentum have softened modestly, aligning with broader national cooling trends. The city also faces industry-specific vulnerabilities across its five key clusters – life sciences, technology, clean technology, sports and active lifestyle, and hospitality and tourism. While they provide resilience, each face unique challenges from supply chain disruptions, innovation pace dependency, competition for talent and fluctuating macroeconomic conditions. Prior to the pandemic, the city boasted a low unemployment rate of 2.9%. At the height of the pandemic, unemployment spiked to 13.8%. With the pandemic’s economic impacts behind us, unemployment rates have dropped dramatically. The March 2026 unemployment rate of 4.0% in Carlsbad represented a slight decrease compared to the prior year’s unemployment rate of 4.1%. The unemployment rate for the County of San Diego was 4.3% in March 2026 and the State of California was 5.3%. Within the city, many employers are citing difficulty in finding and retaining workers. Macroeconomic trends in the tech industry have been pushing unemployment up nationally, but the labor market is still considered to be tight. At the end of June 2026, the two-year Treasury yield was 3.77%, 68 basis points lower than the previous year, and the 10-year Treasury yield was 4.44%, 20 basis points higher than the previous year. While the yield spread was inverted by 21 basis points last year, the curve is now upward sloping with spread of 67 basis points. The long-term average historical spread is about +85 basis points. The yield curve, inverted for a period of over two years, became positive in September 2024 and has slowly increased month over month. The Federal Reserve’s interest rate targets have dropped to 3.50%-3.75% and inflation, despite recent bi-monthly fluctuations, has remained steady at 3.8% year-over-year. Maintaining good fiscal health must remain a top priority. Meeting this objective preserves the city’s ability to continue providing important programs and services to the community. Past economic challenges and prudent financial planning have provided opportunities for developing solutions to address future funding needs while preserving vital services. The positive effect of inflation on some of the city’s revenue sources has been significant but is considered one-time and something to be very closely monitored moving forward. As inflation is likely to decline in the future, so will revenue growth. Disciplined spending and long-term financial planning remain critical to ensuring the future sustainability of important city programs and services as well as long-term infrastructure maintenance.
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Long-Term Financial Planning
Strategic planning begins with determining the city's fiscal capacity based upon long-term financial forecasts of recurring available revenues and future financial obligations. Prior to the adoption of the annual budget, the finance department will prepare a Ten-Year Financial Forecast (Forecast) that evaluates known internal and external issues impacting the city's financial condition. The methodology for preparing the Forecast can be found in the appendices of this document. The Forecast is intended to help the city: • Attain and maintain financial sustainability, • Have sufficient long-term information to guide financial decisions, • Have sufficient resources to provide programs and services for the stakeholders, • Identify potential risks to on-going operations in the long-term financial planning process and communicate these risks on an annual basis, • Establish mechanisms to identify early warning indicators, and • Identify changes in expenditure or revenue structures needed to deliver services or to meet the goals adopted by the City Council. It is important to stress that the Forecast is not a budget. The Forecast does not dictate expenditure decisions, but rather highlights the need to prioritize the allocation of the city’s limited resources to ensure the continuation of core city services. The purpose of the plan is to provide the City Council, key stakeholders and the public an overview of the city’s fiscal health based on various financial and service level assumptions over the next ten years. It also allows for the discussion of necessary steps to be initiated during the development and implementation of future budgets. The Forecast is intended to look beyond the annual budget cycle and serve as a planning tool to bring a long-term perspective to the budget process. The Forecast also takes into consideration City Council policies that need to be met on an annual basis including General Fund reserve guidelines, pension funding guidelines, etc. Should projected expenditures exceed projected revenues in any given year, the City Manager will need to identify steps to mitigate the shortfalls prior to presenting a balanced budget to the City Council for consideration during the annual budget development process. It should be noted that the Forecast is a snapshot in time and will change as additional information is made available and incorporated into the fiscal projections. Inflation and the uncertainty associated with the economy has increased the volatility of projecting future revenues. The city prepares a long-term financial model for both capital and operating needs. It is imperative that the city plan for the impacts of development, the construction and operation of new public facilities, and planning resources needed to build them. The city prepares a ten-year operating forecast for the General Fund, a five-year Strategic Digital Transformation Investment Program, and a fifteen-year Capital Improvement Program. As part of the new Strategic Digital Transformation Investment Program and the Capital Improvement Program, the city annually calculates the amounts needed to pay for the projects and anticipated operating budget impacts. In this way, the city can anticipate the effects of development from both a capital and an operating perspective. One important initiative the city has undertaken to ensure its financial health is the development of an Infrastructure Replacement Fund. With this fund, the city sets aside a portion of General Fund revenues on an annual basis for major maintenance and replacement of its infrastructure. Much of the city’s infrastructure is relatively new; thus, the city is just now experiencing the impact of
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maintenance requirements. By setting aside funds now, the city’s residents can be assured that the proper maintenance and replacement will be performed, as needed, on streets, parks and many facilities for which the city is responsible. Employee retirement costs continue to require ongoing prudent fiscal management. The City Council issued a pension funding policy to codify its commitment to ensure that resources will be available to fulfill the city’s contractual retirement promises to its employees, and to minimize the chance that the funding of these benefits will interfere with providing essential services to the community. The policy outlines a funding discipline to ensure that adequate resources will be accumulated in a systematic and disciplined manner to fund the long-term cost of benefits to the plan participants and annuitants. Overall funding levels of the city’s plans are reviewed annually to ensure the city’s funding level remains at least 80% – the city’s minimum targeted level. While this enhances the city’s funding position, risks remain in the system. Required employer contributions will continue to increase over the next few years and actual contribution increases could exceed expectations if future investment return rates or other factors are unfavorable.
Revenue and expenditure growth projections
The city’s Forecast considers the annual growth of all currently known elements of city revenues and expenditures. Projecting revenues is particularly difficult when considering rising inflation and impacts to consumer demand. When forecasting expenditures, some of the major factors considered are rising healthcare and workers’ compensation costs, underperforming pension programs, and general inflation in both personnel and operating expenditures. Currently, the city projects expenditure growth will outpace revenue growth in the near future. To support the increase in ongoing costs, the city will need to consider alternative options, such as ways to increase economic activity that will drive sustainable increases in the city’s current revenue base, an expansion of the city’s revenue base, or a reduction of the city’s current service offerings and associated costs.
F INA NC IA L MA NAGEMEN T PO L IC IES Revenue Policies
The development and maintenance of balanced and reliable revenue streams will be the primary revenue objective of the city. Efforts will be directed to optimize existing revenue sources while periodically reviewing potential new revenue sources. One method to maximize existing revenue sources is to promote a healthy business climate. Revenue estimates will be prepared on an annual basis during the preparation of the budget and major revenue categories will be projected on a tenyear basis. Revenues will be estimated conservatively using accepted standards and estimates provided by the state and other governmental agencies. Alternative revenue sources will be periodically evaluated to determine their applicability to meet identified city needs. Sources of revenue will be evaluated and modified as necessary to assure a diversified and growing revenue base that improves the city’s ability to handle fluctuations in individual revenue sources. Revenues from “one-time” or limited duration revenue sources will not be used for ongoing operating expenses. Fees and charges for services will be evaluated and, if necessary, adjusted annually to ensure that they generate sufficient revenues to meet service delivery costs. The city will establish user charges at a level generally related to the full cost (operating, direct, indirect and
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capital costs) of providing the service, unless the City Council determines that a subsidy from the General Fund is in the public interest, in accordance with City Council Policy 95, Cost Recovery Policy for Fees and Charges for Services. The city will also consider market rates and charges levied by other municipalities of similar size for like services in establishing rates, fees and charges. Enterprise and internal service funds will aim to be self-supporting.
Expenditure and Budget Policies
Major expenditure categories will be projected on a ten-year basis. The city will operate on a current funding basis. Expenditures will be budgeted and controlled so as not to exceed current revenues plus the planned use of any accumulated fund balances. Annual budgeted operating expenditures shall not exceed annual operating revenues, including budgeted use of reserves, unless directed by the City Council. The City Manager shall prepare and submit to the City Council annually a proposed operating, strategic digital transformation investment program and capital improvement program budget and the budgets will be adopted by June 30 of each year. Budget status reports are prepared quarterly and posted on the city’s website. Because the budget is based on estimates, from time to time, it is necessary to make adjustments to finetune the line items within it. Various levels of administrative control are utilized to maintain the budget’s integrity. Program managers are accountable for the line-item level of control of their individual program budgets. Department heads are accountable for the fund level of control for funds within their departments. The City Manager is accountable for the fund level of control across departments, up to $250,000. The Finance Department oversees the general level of accountability related to budgetary integrity through systematic checks and balances and various internal controls. City Council Policy 87, General Fund Surplus Policy outlines the use of surplus funds resulting from unrestricted General Fund actual revenues exceeding total actual expenditures, encumbrances, and commitments for a given fiscal year. It is the intent of the city to use all surplus funds generated to meet reserve policies, and the reduction or avoidance of long-term liabilities. The city will not use year-end surplus funds to fund ongoing operations unless otherwise approved by the City Council. The city will use surplus funds to replenish any General Fund deficiencies, up to the minimum level as set forth in City Council Policy 74, General Fund Reserve Policy and then any pension liability deficiencies, as defined in City Council Policy 86, Pension Funding Policy. The City Manager is authorized to approve the carryforward of any unencumbered and unspent budget for a particular item equal to or less than $100,000 into the following fiscal year. These items will be one-time expenditures and not for ongoing services, programs or personnel. Any remaining surplus funds in excess of reserve and pension liability deficiencies and items equal to or greater than $100,000 will be brought forward for City Council approval. The city adheres to long-range financial planning, which forecasts revenues and expenditures over a long-term period, using assumptions about economic conditions, future spending scenarios and other salient variables. Financial planning allows the city to execute overall strategies to support the process of aligning financial capacity with long-term service objectives. Financial forecasts are updated at least once a year, or more often if unexpected changes in economic conditions or other unforeseen circumstances exist. Any significant changes will be reported to the City Manager and the A-27
City Council. Otherwise, these financial forecasts will be used as a tool during the development of the annual budget process and to set utility rates as needed.
Reserve Policies
The city formally mandates the levels at which reserves shall be maintained for the General Fund and utilities funds and informally sets minimum target levels for the internal service funds. City Council Policy 74, General Fund Reserve Policy was most recently updated and approved by the City Council in June 2019. The purpose of the policy is to establish a target minimum level of designated reserves in the General Fund to: • Reduce the risk of financial impacts resulting from a natural disaster or other catastrophic events; • Respond to the challenges of a changing economic environment, including prolonged downturns in the local, state or national economy; and • Demonstrate continued prudent fiscal management and creditworthiness. The city commits to maintaining General Fund reserves (the term reserve refers to any unassigned fund balance) at a target of 40% of General Fund annual operating expenditures. The total reserve level will be calculated using the prior year’s adopted General Fund budgeted expenditures. At the discretion of the City Council, reserve levels in excess of the 40% target requirement may be used for one-time opportunity cost purposes. Reserve funds will not be spent for any function other than the specific direction in the annual budget or by a separate City Council action. As a general budget principle concerning the use of reserves, the City Council decides whether to appropriate funds from reserves. Reserve funds will not be spent for any function other than the specific purpose of the reserve account from which they are drawn without specific direction in the annual budget or by a separate City Council action. The City Council approved City Council Policy 96, Utilities Reserve Policy in March 2023 to establish guidelines to ensure the fiscal stability of the potable water, recycled water and wastewater funds and provide guidance to staff in the management of each utility’s finances. These funds will target a reserve funding level of 100% of annual debt service costs, 120 days of operating costs, and 1% of system replacement value in emergency capital. The Wastewater Fund will target a reserve funding level of 50% of the five-year rolling average of annual spending on capital improvement projects while the Potable and Recycled Water funds will target 100% of this average. Also, the Wastewater Fund will target a reserve of 10% of rate revenues while the Potable and Recycled Water funds will target a reserve of 20% of rate revenues to provide a source of funds to smooth rates or avoid rate increases in the event of short- or mid-term disruption to revenues such as drought-related demand reductions. The city or the Carlsbad Municipal Water District’s potable water, recycled water and wastewater utilities will treat minimum reserve levels as practical reserve floors and allow reserves to increase or decrease as necessary within the minimum and target levels prescribed above. The city’s Workers’ Compensation and Risk Management (General Liability) funds will maintain minimum reserves equal to the estimated outstanding claims as calculated by a third-party administrator. Additional reserve amounts may be set aside as deemed appropriate based on thirdparty actuarial studies completed at two-year intervals. During the annual budget process, the target A-28
confidence level will be compared with the projected fund balance of each fund, and if the projected fund balance is greater than or lesser than the target, a plan to adjust the fund balance will be considered, using either or both increasing revenues through interdepartmental charges and onetime cash contributions from those funds contributing to the shortfall. The Information Technology Asset Replacement and Vehicle Asset Replacement funds shall maintain minimum reserve levels defined as the amount of accumulated depreciation of capitalized assets based on the original cost of each capitalized asset and up to a maximum reserve level defined as the accumulated depreciation based on the estimated replacement cost of each capitalized asset.
Investment Policy
The city has established a formal Investment Policy. It is the policy of the City of Carlsbad to invest public funds not required for immediate day-to-day operations in safe, liquid and medium-term investments that shall yield an acceptable return while conforming to all California statutes. It is intended that the policy cover the investment activities of all contingency reserves and inactive cash under the direct authority of the city. Investments of the city and its component units will be made on a pooled basis; however, investments of bond proceeds will be held separately if required.
Pension Funding Policy
The city’s City Council Policy 86, Pension Funding Policy embodies funding and accounting principles to ensure that resources will be available to fulfill the city’s contractual promises to its employees. The policy objectives include using actuarially determined contributions, or ADC, provided by CalPERS to fund the full amount of the ADC each year, maintaining no less than a combined minimum 80% funded ratio, and demonstrating accountability and transparency by communicating all information necessary for assessing the city’s progress toward meeting its pension funding objectives. In the event the city is unable to meet the minimum combined pension funded ratio of 80% with current resources (i.e., without borrowing or using reserves), the Finance Director will identify a reasonable period to return to a minimum 80% funded ratio status. In an effort to mitigate pension rate volatility, manage the city’s funded status and enhance local control of city funds, the city established a Section 115 Pension Trust. The city’s Section 115 Pension Trust is a tax-exempt investment tool that allows local governments to pre-fund pension and retiree health costs. Once contributions are placed into the trust, assets from the trust can only be used for retirement plan purposes. Withdrawals may be made to either reimburse the city for retirement system contributions or to directly pay CalPERS. Benefits of the trust include (1) local control over assets, (2) pension rate stabilization, (3) potential for higher investment return than General Fund, and (4) diversification from CalPERS’ investments. Contributions from the General Fund are invested in accordance with City Council Policy 98, Pension Trust Investment Policy. In an effort to maintain a combined funded status of 80% and to fund the costs associated with a potential reduction in CalPERS’ discount rate, the trust is scheduled to receive a total of $40 million in principal contributions over five fiscal years, and assuming an annual rate of return of 6.25%, the trust is projected to accumulate sufficient assets to fund a potential discount rate reduction from the current 6.8% to 6.25%.
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Long Term General Fund Capital Funding Policy
The city’s City Council Policy 91, Long Term General Fund Capital Funding Policy ensures the needs of the city are met and demonstrates continued prudent fiscal management by providing a funding source for long-term, large value capital purchases. Many city assets demand large capital expenditures, examples include roads, building, parks and information technology infrastructure. The city funds the General Fund portion of these necessary investments by adopting an annual budget that includes a transfer from the General Fund to one or more of the city’s long-term capital funds. These long-term capital funds include the General Capital Construction Fund, the Infrastructure Replacement Fund and the Technology Investment Capital Fund. The city commits to targeting a transfer to the city’s long-term capital funds of 6% of budgeted General Fund revenues. The transfers are proposed during the annual budget process or on an as needed basis for the City Council’s consideration. Full versions of these policies and other City Council policies are available on the city’s website at www.carlsbadca.gov/city-hall/laws-policies/council-policies.
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A PPRO PRI ATI ON L IMI T The appropriations limitation imposed by the state, otherwise known as the Gann limit, creates a restriction on the amount of revenue that can be appropriated in any fiscal year. The basis for calculating the limit began in fiscal year 1978-79 and is increased based on population growth and inflation. The appropriation limit applies only to those revenues defined as proceeds of taxes. • Population growth of Carlsbad, OR • Population growth within San Diego County, AND • Growth in California per capita income, OR • Growth in non-residential assessed valuation due to new construction in the city. The factors used to calculate the fiscal year 2025-26 limit were: • •
Population growth within San Diego County AND Growth in California per capita income.
The formula is outlined below: Fiscal year 2025-26 expenditure limit
$673,537,530
% Population growth within San Diego County Growth in California per capita income Net increase factor
1.0004 X 1.0495 1.0499
Fiscal year 2026-27 limit (2025-26 limit x factor)
$707,147,053
Current appropriation of proceeds of taxes (Subject to the limit)
$208,416,612
$800
Appropriations Limit by Fiscal Year
$700
Millions
$600 $500
Gann Appropriation Limit
$400 $300
Appropriations Subject to Limit
$200 $100 $-
2023
2024
2025
2026
2027
The City of Carlsbad’s appropriation limit is currently nearly three times its annual appropriations. With such a large margin, it is unlikely that the city will reach the appropriation limit in the foreseeable future.
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DE BT MAN AGEMEN T The City of Carlsbad has a AAA credit rating and is widely acknowledged for its financial stability and responsible management of resources. The use of debt has always been a primary issue in the development of the Capital Improvement Program and the policies put in place to implement the city’s Growth Management Program. Over the years, the city has issued millions of dollars of bonds and Certificates of Participation to fund streets, buildings, sewer and water facilities, open space acquisitions, and other infrastructure projects. The city is continually evaluating its outstanding debt as well as potential future issues to ensure that interest costs are kept at a minimum and the use of the bond funds is appropriate. The Government Code of the State of California has established maximum general obligation debt limits for local governments within the state. The city’s outstanding general obligation debt should not exceed 15% (as adjusted by 25% per the law) of total assessed property value. As of June 30, 2025, the city’s calculated debt limit for general obligation debt was $1.7 billion. The city currently has approximately $41.4 million debt outstanding as of June 30, 2025. Of that $41.4 million, $12.5 million is water construction loans and the remainder is debt of financing districts. Outstanding debt obligations of financing districts (special districts and/or assessment districts) within the city do not obligate the City of Carlsbad and are not paid from the city’s General Fund.
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City of Carlsbad Outstanding Debt Issues
Debt Issue Name
Repayment Source
CFD #3 2016 Improvement Area 1 Special Tax Bonds CFD #3 2016 Improvement Area 2 Special Tax Bonds
Principal Outstanding at 6/30/26
Fund
Bond Rating
Retirement Year
Special District
434
Unrated
2036
Special District
434
Unrated
2038
8,440,000 Refunding of CFD 2
2022 College/Cannon & Poinsettia Refunding Bonds Limited Obligation Assessment Improvement Bonds District
425
Unrated
2035
13,310,000 Refund Poinsettia/College/Cannon
502 507 511
Unrated
2027 2055 2046
1,201,977 Fund phase II of Industrial Park Pipelines 13,513,298 Fund phase III of Industrial Park Pipelines 10,181 SCADA Implementation Project
State Water Resources Control Board Loans 2006 Construction Loan 2014 Construction Loan Recycled Water 2023 Construction Loan Wastewater User Fees Totals
$
Purpose
4,990,000 Refunding of CFD 1
$ 41,465,457
Debt Service Payments During FY 2026-27 Debt Issue Name
Principal
Interest
Debt Service Payments from FY 26-27 to Maturity Total
Principal
Interest
Debt Service Payments Total from Inception to Maturity
Total
Principal
Interest
Total
5,920,650 $
8,290,000 $
2,608,576 $ 10,898,576
CFD #3 2016 Improvement Area 1 Special Tax Bonds
$
395,000 $
134,450 $
529,450 $
4,990,000 $
930,650 $
540,000
261,738
801,738
8,440,000
1,966,693
10,406,693
13,015,000
4,865,938
17,880,938
2022 College/Cannon & Poinsettia Refunding Bonds Limited Obligation 1,095,000 Improvement Bonds
638,125
1,733,125
13,310,000
3,497,750
16,807,750
16,240,000
6,190,906
22,430,906
27,645 135,133 249
1,229,623 555,727 650
1,201,977 13,513,298 10,181
27,645 2,047,051 2,819
1,229,623 15,560,350 13,000
19,382,546 14,257,981 10,181
5,174,387 2,261,634 2,819
24,556,933 16,519,615 13,000
CFD #3 2016 Improvement Area 2 Special Tax Bonds
State Water Resources Control Board Loans 2006 Construction Loan 1,201,977 2014 Construction Loan 420,594 2023 Construction Loan 401 Totals
$
3,652,972 $
1,197,340 $
4,850,312 $ 41,465,457 $
8,472,608 $ 49,938,065 $ 80,890,212 $ 23,700,083 $ 104,590,295
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BA SI S OF BU D GE TI NG The city budgets on a modified accrual basis for all funds except for its enterprise and internal service funds, which are budgeted on a full accrual basis. This is consistent with the city’s basis of accounting as reported in its Annual Comprehensive Financial Report. The city's Governmental fund budgets consist of: • The General Fund • Special revenue funds • Capital project funds To summarize, under this basis, revenues are estimated for the fiscal year if they are susceptible to accrual, e.g., amounts can be determined and will be collected within the current period. Principal and interest on general long-term debt are budgeted as expenditures when due, whereas other expenditures are budgeted for liabilities expected to be incurred during the current period or shortly thereafter to pay current liabilities.
Proprietary fund budgets are adopted using the full accrual basis of accounting whereby revenue projections are developed recognizing revenues expected to be earned in the period, and expenditure estimates are developed for all expenses anticipated to be incurred during the fiscal year. The city's proprietary fund types consist of enterprise and internal service funds because the city has municipally owned utilities or other enterprise activities.
Fiduciary funds are used if the city has a fiduciary or custodial responsibility for assets. The city currently has one fiduciary fund, the Successor Agency to the former Carlsbad Redevelopment Agency. The legal level of Budgetary Control is the fund level and expenditures should not exceed budgeted amounts at the fund level. Budgetary control is maintained through the city’s accounting system, as well as through monthly reporting on all revenue and expenditure accounts and other special reports summarizing the financial position of the city. The City Council adopts the formal budget for all funds prior to the beginning of each fiscal year and may amend the budget as necessary by City Council action throughout the year. All unencumbered, unspent appropriations expire at yearend unless specifically carried into the new fiscal year in accordance with City Council Policy 87, General Fund Surplus Policy.
Internal Controls exist within the accounting system to ensure safety of assets from misappropriation or unauthorized use or disposition and to maintain the accuracy of financial record keeping. These internal controls must be established consistent with the sound management practices based on the cost and benefit of the controls imposed. The cost of a control should not be excessive in relation to its benefit as viewed by city management. The internal controls in existence within the city’s system are sufficient to ensure, in all material aspects, both the safety of the city’s assets and the accuracy of the financial record keeping system. Controls on the use and transfers of budget funds are outlined in the adopted budget resolution in the appendices of this document.
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B UD GE TAR Y FUN D S TR UC TURE The budget of the city is organized based on funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of selfbalancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures. Detailed descriptions of each fund and a department/fund budget relationship matrix can be found in the appendices of this document. The various funds are grouped as follows:
GOVERNMENTAL FUNDS General Fund
Special Revenue Funds
• • • • • • • • • • • • • • • • • • • • • • • • •
Affordable Housing Agricultural Mitigation Fee Buena Vista Channel Maintenance District Citizens’ Option for Public Safety (COPS) Community Development Block Grant Continuum of Care Cultural Arts Donations Encampment Resolution Fund Habitat Mitigation Fee Library and Arts Endowments Library Gifts and Bequests Lighting and Landscaping District 2 Local Cable Infrastructure Median Maintenance District Opioid Settlement Fund Parking in-Lieu Fees Permanent Local Housing Allocation Police Asset Forfeiture Public Safety Grants Recreation Donations Rental Assistance/Section 8 Program Senior Program Donations Street Lighting Maintenance District Street Tree Maintenance District Tyler Court Apartments
Capital Project Funds
• • • • • • • • •
Community Facilities District 1 Gas Tax Gas Tax-Road Maintenance and Rehabilitation General Capital Construction (GCC) Grants-Federal Grants-State Infrastructure Replacement (IRF) Park in-Lieu Fees (PIL) Planned Local Drainage Area Fees (PLD)
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• • • •
Public Facilities Fees (PFF) Technology Investment Capital Traffic Impact Fees (TIF) TransNet
PROPRIETARY FUNDS
Internal Service Funds
• • • • • •
Workers’ Compensation Risk Management Vehicle Maintenance Vehicle Replacement Information Technology Operations Information Technology Replacement
Enterprise Funds
• • • • • • • • • • • • •
Potable Water Operations Potable Water Connection Potable Water Replacement Recycled Water Operations Recycled Water Connection Recycled Water Replacement Wastewater Operations Wastewater Connection Wastewater Replacement Solid Waste Management Storm Water Protection Watershed Protection The Crossings Golf Course
FIDUCIARY FUND
Private Purpose Trust Fund •
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Successor Agency to the Redevelopment Agency
The California Society of Municipal Finance Officers, or CSMFO, recognizes those entities with highly professional budget documents with two levels of certificates. The first level is the “Meritorious Budget Award,” which requires the entity to meet a very specific list of criteria defined by CSMFO. The second level is the “Operating Budget Excellence Award,” which requires that the organization meet even higher criteria which effectively enhances the usability of the document. In preparing the budget for fiscal year 2026-27, the city has once again followed CSMFO’s award criteria. This budget document will be submitted to CSMFO for the fiscal year 2026-27 budget award program.
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Government Finance Officers Association of the United States and Canada, or GFOA, presented a Distinguished Budget Presentation Award to City of Carlsbad, California, for its Annual Budget for the fiscal year beginning July 1, 2025. To receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide and as a communications device. This award is valid for a period of one year only. In preparing the budget for fiscal year 2026-27, the city has once again followed GFOA’s award criteria. This budget document will be submitted to GFOA for the fiscal year 2026-27 budget award program.
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OVER VIEW This section includes a summary of the revenues and expenditures included in the fiscal year 2026-27 operating budget. Spending is presented by funding source, department and type, such as personnel or maintenance and operations. For context, previous years’ spending levels are often presented alongside this information. Financial tables are presented to the nearest hundred thousand; rounding differences may exist.
Detailed summaries of department services and expenditures are included within the five main sections of the operating budget following this overview. The five city branches include: • • • • •
Public Safety Public Works Community Services Administrative Services Policy & Leadership
Information about the city’s approach to planning for and funding digital transformation efforts throughout the city is included in the Strategic Digital Transformation Investment Program section. Information about capital projects, such as construction of roads and pipelines, the development of parks and construction and maintenance of city facilities, is included in the Capital Improvement Program section.
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REV ENUE The Operating Budget for fiscal year 2026-27 totals $449.5 million, with revenues for the year estimated at $451.3 million. General Fund revenues are estimated at $249.6 million and General Fund budgeted expenditures are $249.4 million, which includes an additional $5.0 million in one-time transfers to the Solid Waste Management Enterprise Fund for Stormwater Protection programming. Excluding the one-time uses of General Fund surplus, the General Fund budgeted operating expenditures are $244.4 million. Revenue estimates for the Operating Budget indicate the city will receive a total of $451.3 million in fiscal year 2026-27, a change of 0.2% or $1.1 million below the estimated fiscal year 2025-26 revenues. General Fund revenues are expected to increase by $6.3 million or 2.6% compared to the prior year’s adopted revenues, and the same when compared to fiscal year 2025-26 estimates. Special Revenue funds are projected to decrease by 26.8% or $9.7 million over fiscal year 2025-26 estimates driven primarily by one-time Encampment Resolution funding received in fiscal year 202526, in addition to smaller decreases in CDBG, Tyler Court, Affordable Housing Trust Fund, and the COPS Fund. Enterprise Fund revenues are projected to increase by 2.9% or $3.6 million in the upcoming fiscal year. Internal Service Fund revenues are decreasing over the prior year’s adopted budget by $1.3 million, or 2.6%. This is primarily driven by a reduction in chargebacks for Vehicle Replacement and Information Technology in an effort to maintain their respective reserve levels inline with industry standards. The Successor Agency Housing Trust is no longer receiving any material revenue as the loan owed to the General Fund has now been fully repaid. More detailed information on the city’s revenue sources is provided in the following discussion. The following table shows the total operating revenues anticipated to be received by the city for fiscal year 2025-26, as well as those budgeted for fiscal year 2026-27. REVENUE SUMMARY BY FUND TYPE (in Millions) Fund General Fund
Estimated 2025-26
$ Change
% Change
243.3 $
249.6 $
6.3
2.6%
Special Revenue
36.4
26.6
(9.7)
-26.8%
Enterprise
123.6
127.2
3.6
2.9%
Internal Service
49.0
47.8
(1.3)
-2.6%
452.3 $
451.3 $
(1.1)
-0.2%
Total
$
Budgeted 2026-27
$
General Fund General Fund revenues provide a representative picture of the local economy. These revenues are of particular interest as they fund basic city services such as Police, Fire, Library & Cultural Arts, Street and Park Maintenance and Recreation programs. The table below provides a summarized outlook of the General Fund revenues.
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GENERAL FUND REVENUES (In Millions)
Property Tax
$
Estimated
Budgeted
$
%
2025-26
2026-27
Change
Change
100.1 $
104.7 $
4.6
4.6%
Sales Tax
54.4
55.0
0.6
1.2%
Transient Occupancy Tax
35.6
35.9
0.4
1.0%
Franchise Taxes
7.4
7.5
0.1
1.9%
Business License Tax
7.1
7.0
(0.1)
-1.0%
Development Revenues
4.7
4.8
0.2
3.6%
All Other Revenue
34.1
34.6
0.5
1.4%
243.3 $
249.6 $
6.3
2.6%
Total
$
Sustained by pent-up demand following the COVID-19 pandemic and accumulated savings, the inflationary spike between March of 2021 and November of 2023 served as a boost for the city’s revenue sources like sales tax and transient occupancy tax. While these revenue sources sustained strong performance in fiscal year 2023-24, the city began seeing consumer demand decline in response to the sustained inflationary levels and diminishing levels of personal savings. This trend continued throughout fiscal year 2024-25 and 2025-26, despite the Federal Reserve’s reduction of interest rate benchmark targets from a high of 5.50% in July 2023 down to 3.50% as of December 2025. Consumer confidence was impacted by federal administration policy changes, notably the implementation of tariffs on foreign goods. While confidence rebounded at the beginning of fiscal year 2025-26, it declined again in response to geopolitical challenges and rising oil prices. Nationally, GDP increased by 2.0% in the first quarter of 2026, largely due to investment, exports, consumer spending, and government spending which were offset by a reduction in imports. Rising oil prices, geopolitical tensions and inflation continue to pose risks, even as labor market resilience supports some optimism in consumer sentiment on a macro level. Overall, the U.S. consumer confidence in April 2026 reflects a complex mix of cautious optimism and underlying economic concerns, with short-term improvements tempered by persistent inflation and geopolitical uncertainty. Nearly 80% of General Fund revenues are derived from three sources: property tax, sales tax, and transient occupancy tax, or TOT. Sales tax and TOT revenues tend to be much more sensitive to changes in economic conditions, unlike property tax revenues, which remain relatively stable because of the mitigating effect of Proposition 13, which limits annual growth in assessed values.
Property tax, the largest source of General Fund revenues, is expected to grow by $4.6 million, or 4.6%, over the previous year’s estimates. Despite the extended rise and reduction in interest rates from the Federal Reserve, Carlsbad’s residential real estate market has seen modest retraction year-overyear, decreasing by 3.9% to a $1.37 million median price as of March 2026. Future growth for both residential and commercial properties is expected to remain relatively flat given the sustained interest rate levels although strong and continued demand for relatively limited supply may stabilize any adverse factors. Proposition 8 allows owners to have their property temporarily revalued if market value is lower than the factored base year value, posing a risk that commercial property values could temporarily decrease.
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Assessed values on the residential real estate side are expected to grow modestly, capped by California’s Proposition 13. Adopted in 1978, Proposition 13 limits the annual increase in assessed values for property. Under this proposition, assessed values (and the related property tax) can grow by no more than 2% per year. Aircraft taxes, a component of the city’s property tax revenue category, is expected to increase in future periods. Although assessed valuations are highly volatile from year-to-year given the transient nature of where aircrafts are housed, should the Palomar Airport expand operations, the city would expect additional revenue generation. In recent years, aircraft taxes have ranged between $2-3 million annually. The fiscal year 2026-27 budget assumes a $300,000, or 10.1% increase of fiscal year 2025-26 estimates.
Changes in property tax revenues lag behind changes in the housing market, as the tax revenue for the upcoming fiscal year is based on assessed values from the previous January. Thus, the taxes to be received for fiscal year 2026-27 are based on assessed values as of January 1, 2026. Property taxes tend to grow slowly unless there is a significant amount of development-related activity. In past decades the city has seen robust growth in property tax revenue due to new development, high turnover of existing homes and double-digit growth in housing prices. However, as opportunities for new development and growth lessen, development-related revenues have slowed. In addition to current interest rates levels and the implementation of tariffs, slower development combined with minimal commercial property transactions creates more uncertainty regarding future growth.
Sales Tax revenues generally move in step with economic conditions but overall, Carlsbad’s
economy has absorbed the inflationary increases experienced since 2021. With the pandemic and its fiscal impacts behind us, new uncertainty stems from federal administration policy and geopolitical conflict, particularly around the cost of oil. Over the last year, consumer demand and confidence has been diminishing despite brief period surges, which indicate heightened economic elasticity. The Federal Reserve has reduced interest rate benchmark targets from 5.50% in July 2023 to 3.50% as of December 2025; however, geopolitical tensions and the rise in oil prices have kept consumers cautious. B-4
The onset of the pandemic in March 2020 resulted in swift reductions in sales tax revenues. During fiscal year 2020-21, sales tax levels generally correlated with shelter-in-place mandates. As restrictions were lifted, the city’s sales tax levels recovered. While the city ended fiscal year 2019-20 with $38 million in sales tax revenues, that figure increased in 2020-21 to $44 million in sales tax revenues. Fiscal year 2021-22 experienced the most accelerated recovery, ending the year at a historic high of $51.2 million in sales tax revenues. The fiscal year 2022-23 and 2023-24 sales tax estimates reflected uncertainty surrounding market and economic conditions like inflation and impacts to disposable income. Despite the levels of inflation, growth was positive over this period; however, fiscal year 2024-25 indicated a slowdown in consumer demand as a result of the sustained levels of inflation and the uncertainty regarding tariffs. Fiscal year 2025-26 experienced continued decreases in demand at the local level, likely due to sustained inflationary levels, uncertainty among geopolitical conflict and the rise in oil prices. Staff have proposed a conservative estimate of $55.0 million in budgeted revenue for fiscal year 2026-27 which represents an increase of $0.6 million, or 1.2%, over fiscal year 2025-26 estimates.
As indicated in the chart on the previous page, the city’s sales tax base is heavily weighted in the transportation (comprised heavily of new auto sales) and general retail sectors, which combined account for over half of the taxable sales in Carlsbad. New auto sales are highly elastic—or responsive to changes in price—in comparison to economic trends, and tax revenues from new auto sales fell precipitously during the recession, from $6.7 million in 2007 to $4.4 million in 2009. Since that dip, auto sales tax revenues have grown steadily, reaching a high of $19.8 million for the four quarters ended June 30, 2024. Much of the positive performance in fiscal year 2023-24 was due to a correction of an error made by one particular auto dealer in how they were reporting and remitting their taxable receipts. Projections in fiscal year 2026-27 are estimated at $16.2 million, representing a
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$0.3 million or 1.9% increase, indicating conservative growth following a period stifled by unprecedented inflationary levels. Minor volatility is expected across multiple industry groups including business and industry, building and construction and general consumer goods; however, fuel and service stations are projected to experience growth in excess of 10% with the recent surge in oil prices. Sales tax revenues include those received under Proposition 72, a 0.5 cent increase in California sales tax for the funding of local public safety services.
The third highest General Fund revenue source is Transient Occupancy Tax, also known as TOT or hotel tax. TOT was the revenue category most adversely impacted by COVID-19. From historic highs of $26 million in fiscal year 2018-19, the city experienced year-over-year decreases of 27% and 16%. Recovery from the pandemic was estimated conservatively; however, fiscal year 2021-22 TOT revenues proved otherwise, reaching a historic high of $32.4 million driven by the easing of restrictions, pent-up demand and an increase in average daily room rates. This trend continued in fiscal year 2022-23, whereby actual revenues exceeded conservative estimates that were applied to account for sustained levels of unprecedented inflation. Fiscal year 2023-24 and 2024-25 experienced conservative to moderate growth as occupancy rates and average daily room rates held steady throughout the sustained inflationary period. Fiscal year 2025-26 estimates are in-line with continued conservative projections and fiscal year 2026-27 will follow similar trends accounting for a $0.4 million, or 1.0% increase over current year estimates.
Franchise Tax revenue has experienced volatility in recent years and is projected at $7.5 million in fiscal year 2026-27. Franchise taxes are paid by certain industries that use the city’s right-of-way to conduct their business. The city currently has franchise agreements for cable TV service, solid waste services, cell sites, fiber optic antenna systems and gas and electric services. The solid waste franchise fee has experienced minor revenue increases that mirror growth in population and changes in rate
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structures. Cable TV franchise revenue is expected to slightly decrease from $1.1 million in fiscal year 2025-26 to $1.05 million in fiscal year 2026-27. This revenue source will most likely remain stable or decline in future years as more subscribers cut cable services and move to online streaming services. In April 2021, a new franchise agreement for solid waste was approved with Republic Services of San Diego. The city receives 7.5% of revenue collected as well as an annual payment of $0.9 million in support of AB 939 and a $1.4 million storm water fee. Fiscal year 2025-26 solid waste franchise tax revenue is projected to end the year with $2.53 million and fiscal year 2026-27 is projected to slightly increase to $2.61 million. San Diego Gas & Electric pays franchise taxes for the use of the public land over which they transport gas and electricity. The city also receives an “in-lieu” franchise tax based on the value of gas and electricity transported on SDG&E lines but purchased from another source. The “in-lieu” tax captures the franchise taxes on gas and electricity that is transported using public lands, which would not otherwise be included in the calculations for franchise taxes due to deregulation of the power industry. Fiscal years 2022-23 and 2023-24 experienced strong increases as a result of increased rates on both the gas and electric sides; however, fiscal year 2024-25 experienced over revenue declines of approximately 20%. As a result, SDG&E franchise tax revenues decreased from $4.5 million in fiscal year 2023-24 to $3.3 million in fiscal year 2024-25. Fiscal year 2025-26 estimates indicate an approximate 10% increase over the previous year; however, due to past volatility, fiscal year 2026-27 is projected to remain relatively flat over these current year estimates.
Business license taxes are closely tied to the health of the local economy and are projected to increase to $7.0 million in fiscal year 2026-27. This represents growth of $0.2 million or 3% when compared to last year’s adopted revenues and relatively flat compared to fiscal year 2025-26 estimates. Increases in business license taxes tend to correlate with sales tax revenue increases as businesses either pay taxes based on the amount of their gross receipts or based on set fees. There are currently about 10,037 licensed businesses in the City of Carlsbad, with 6,677 of them located in the city.
Development-related revenues are derived from fees for planning, engineering and building
permits, and fees paid by developers to cover the cost of reviewing and monitoring development activities, such as plan checks and inspections. These revenues are difficult to predict as many of the planning and engineering activities occur months or years before any actual development.
Over the last 10 years development-related revenues have fluctuated in line with increases and decreases in residential, commercial and industrial development. In fiscal year 2025-26 the city expects a 2.0% increase in development related revenues to approximately $4.8 million. The projected increase in development-related revenues is tied to the volume and type of development projected to be permitted, multi-family versus single-family, and the revenues derived from building fees which occur in the early stages of development. Increases applied to these charges for services are made in accordance with City Council Policy 95, Cost Recovery.
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The All other revenue category comprises all other sources of revenue in the General Fund other than those mentioned above and are projected to increase by $0.5 million in fiscal year 2026-27 representing a 1.4% change from fiscal year 2025-26 estimates. The main revenue sources contributing to this category are described in more detail below.
Interdepartmental charges are generated through engineering services charged to capital projects, reimbursed work from other funds and miscellaneous interdepartmental expenses charged to funds outside the General Fund for services performed by departments within the General Fund. General Fund miscellaneous interdepartmental charges are expected to increase by 3.4% compared to the prior year’s adopted budget, based on the inflationary index applied to the chargeback in offcycle years in which an updated cost allocation plan is not completed.
Income from investments and property include interest earnings as well as rental income
from city-owned land and facilities. The city is expected to earn about $8.4 million in interest on its General Fund investments, including the city’s Section 115 Pension Trust for fiscal year 2025-26 and another $3.0 million in rental and lease income. The yield on the city’s portfolio is forecasted to average 3.50% and cash balances are expected to decline citywide as construction for Veteran’s Memorial Park progresses.
Ambulance fee revenues are estimated to decrease $0.2 million over last year’s estimates, from $7.0 million to $6.8 million. Ambulance fees have increased in recent years due to the Fire Department’s fee study implementation, the addition of two medical transports, the Ground Emergency Medical Transportation Certified Public Expenditure Program, which helps cover uncompensated costs for Medi-Cal fee-for-service transports, and the participation in the Public Provider Ground Emergency Medical Transport Intergovernmental Transfer Program which will provide add-on reimbursement payments to help cover uncompensated costs in the future. The decrease in year-over-year estimates is driven by the impact of Assembly Bill 716, which became effective January 2024 and has resulted in significant impacts on the reduction of ambulance fees.
Transfer taxes are those taxes paid to the county upon the transfer of interests in real estate. The tax is $1.10 per $1,000 of property value, split equally between the county and the city. Carlsbad expects to receive approximately $1.7 million in transfer taxes for fiscal year 2026-27 which is relatively flat compared to fiscal year 2025-26 estimates. The residential real estate market has held relatively strong following its decrease in median home value from a high of $1.54 million as of 2024 to $1.37 million as of March 2026. The reduction in interest rates from 2023 to 2025 helped stabilize levels of affordability and relatively low levels of supply may help mitigate any adverse effects of macro-economic factors.
Other intergovernmental revenues include miscellaneous receipts received from the state or federal governments as well as local school districts. With the exception of the city receiving its two annual American Rescue Plan Act payments in fiscal 2020-21 and fiscal year 2021-22 totaling $12.6 million and a one-time FEMA reimbursement funding for COVID-19 related expenditures in fiscal year 2024-25, this revenue source remains relatively stable and is expected to remain flat at $1 million over the previous fiscal year.
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The Other revenue sources category includes miscellaneous reimbursed expenses, sponsorships, donations, loss recovery and other charges and fees. The estimate for fiscal year 2025-26 totals $1.6 million and is expected at $0.5 million in fiscal year 2026-27, with year-over-year decreases due to a large one-time insurance reimbursement received in the previous year.
Overall, and as reflected in the bar chart above, General Fund revenues are expected to increase $6.3 million or 2.6% from fiscal year 2025-26 estimates. The General Fund’s primary tax revenues are estimated to increase conservatively over last year’s estimates to account for the current economic uncertainty spurred by geopolitical tensions. Despite uncertainty around inflation and the price of oil, as well as interest rates, the General Fund’s total revenues are expected to be supported by stable property tax values, a diversified sales tax base, and the implementation of the city’s cost recovery policy which increases fees for services in line with appropriate cost recovery levels.
Other Funds
Revenues from Special Revenue funds are expected to total $26.6 million, a decrease of $9.7 million or 26.8% from fiscal year 2025-26 estimates. Funds collected in this category are restricted to specified purposes. The types of programs supported within Special Revenue funds are those funded by specific revenue streams such as: • • •
Federal Grants (Rental Assistance and Community Development Block Grants) Special fees and assessments (Affordable Housing and maintenance assessment districts) Donations (Library, Cultural Arts, Recreation and Senior Donations)
Compared to the fiscal year 2025-26 budget estimates, the most noteworthy changes in the Special Revenue funds occurred in the Encampment Resolution Fund, whereby the city is expected to receive $5.5 million of one-time state grant revenue in fiscal year 2025-26 that it will not receive again in fiscal year 2026-27.
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Special Revenue Funds FY 2026-27 Budgeted Revenues $26.6 Million Tyler Court Apartments $0.9M, 3% Permanent Local Housing Allocation $0.2M, 1%
All others $0.7M, 3%
Donations and Grants $1.0M, 4% Maintenance Districts $4.3M, 16%
CDBG $0.6M, 2%
Rental Assistance $16.4.0M, 62%
Affordable Housing $0.8M, 3% Continuum of Care $1.7M, 6%
There is no revenue budgeted in the Successor Agency Housing Trust Fund, other than interest income from remaining funds. Although the Carlsbad Redevelopment Agency has been dissolved, the California Department of Finance has approved the repayment of the approximately $8.1 million (plus accrued interest) loaned to both the city’s former redevelopment areas by the General Fund as well as debt service payments remaining on the former agency’s 1993 Tax Allocation Refunding Bonds. All outstanding loans and interest accrued have been paid to the city by the end of fiscal year 2020-21 and debt service payments were completed in fiscal year 2023-24.
Enterprise fund revenues for fiscal year 2026-27 are projected at $127.2 million representing an
increase of 2.9% or $3.6 million over fiscal year 2025-26 estimates. The revenue breakdown by activity is shown in the graph on the following page. Enterprise funds are similar to a business in that rates are charged to support the operations that supply the goods or services. Carlsbad enterprise funds include water and recycled water delivery, wastewater services, solid waste management and the operation of a municipal golf course. The Water Enterprise Fund revenue for fiscal year 2026-27 is estimated at $62.8 million representing an increase of $8.4 million or 15.4% when compared to fiscal year 2025-26 revenue estimates. This is driven by increases in water rates. Projected revenues for Recycled Water of $11.3 million are expected to decrease by $3.5 million or 23.4% from fiscal year 2025-26 estimates. This is due to loan proceeds that the fund received in the previous year. Forecasted revenues for Wastewater are $32.8 million representing a 9.6% or $2.9 million increase over fiscal year 2025-26 estimates. This increased estimate is largely driven by rate increases of 14% in fiscal year 2026-27 to support rising treatment costs and aging infrastructure costs.
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Estimated revenues from operations of the Golf Course are $11.9 million, a decrease of $0.9 million or 6.9% when compared to fiscal year 2025-26 estimates. The Crossings at Carlsbad has experienced strong revenue performance year-over-year since the onset of the pandemic. Revenues for the upcoming year are estimated conservatively to account for any potential adverse impacts on consumer demand resulting from economic and market uncertainty.
Enterprise Funds FY 2026-27 Budgeted Revenues $127.2 million Golf Course Operations $11.9M, 9% Solid Waste Management $8.4M, 7%
Water Operations $62.8M, 49%
Wastewater Operations $32.8M, 26%
Recycled Water $11.3M, 9%
Solid Waste Management revenues are projected at $8.4 million, which is $3.3 million or 27.9% lower than fiscal year 2025-26 estimates. The decrease is driven by a change in the level of one-time transfers in from the General Fund $2.0 million transfer in from the General Fund to support continued operations of the city’s Stormwater Protection program. The fiscal year 2026-27 budget includes a one-time transfer of $5.0 million from the General Fund for this effort.
Internal Service funds account for services provided within the city itself, from one department to another and on a cost reimbursement basis. These include programs such as the self-insurance funds for Workers’ Compensation and General Liability (Risk Management), as well as Vehicle Maintenance and Replacement and Information Technology. Departments pay for these services and therefore the rates charged are based on the cost of providing the services. The goal of an internal service fund is to match budgeted expenses with charges to the departments. The combined internal services funds project estimated revenues of $47.8 million for fiscal year 202627 representing a decrease of 2.6% or $1.3 million over fiscal year 2025-26 projections. This decrease is driven by a reduction in chargebacks, particularly for Vehicle Replacement and Information Technology. Workers’ Compensation is increasing by $0.4 million or 4.8% based on the level of anticipated claims and settlements across departments for the upcoming year. Risk Management is also increasing by $0.4 million based on annual estimated claims and settlements occurring across the city’s funds and departments.
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Vehicle Maintenance and Replacement charges are budgeted at $5.1 million and $6.6 million,
respectively. Vehicle Maintenance revenues are up compared to fiscal year 2025-26 estimates primarily due to increasing fuel costs as well as an overall increase in the size of the city’s fleet. Vehicle replacement costs rise when the number of vehicles and the price of new vehicles or the cost to maintain those vehicles increases. For example, many older generation sedans at the end of their useful lives are now being replaced with hybrids and plug-in hybrids at a higher per unit cost. There have also been significant cost increases over the last several years in specialized vehicles such as fire trucks and ambulances as well as supply chain disruptions and unprecedented inflation that have significantly driven up prices. However, in fiscal year 2026-27, the amount charged to departments is decreasing by 38.3% in an effort to strategically align the Vehicle Replacement reserve with industry standards. During periods of low reserve levels, additional charges may be warranted to ensure sufficient funding exists in the future and during periods of high reserve levels, fewer charges may be needed to mitigate unnecessary excess.
Information Technology charges to departments have increased by 2.3% or $0.5 million when compared to fiscal year 2025-26 estimates. The main reason for this increase is due to contractual increases to existing service contracts which were offset by a reduction in chargebacks to strategically align its reserve balance.
Internal Service Fund Allocation Methodology Most of the revenue for the city’s internal service funds is generated from internal service charges. The expenses of each fund are budgeted for and then allocated to other funds on an annual basis. Each fund uses a different allocation basis to charge other funds for its costs, summarized below. • Vehicle Replacement – Based on equipment assigned to departments. • Vehicle Maintenance – A combination of fixed and variable maintenance charges. Fixed maintenance charges are based on a three-year average of maintenance costs in combination with budgeted labor costs. Variable maintenance charges are based on actuals. • Information Technology Operations – A combination of computers per department for citywide maintenance/licensing and direct charges for department-specific items. • Information Technology Replacement – Based on a combination of equipment and hardware specifically assigned to a department and for infrastructure hardware on an allocation based on computers per department as a percentage of citywide computers. • Workers’ Compensation – Based on a combination of personnel count and five-year average claims costs by department. • General Liability – Based on a combination of personnel count, five-year average claims costs by department and vehicles assigned to departments.
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EX PEN DI TURES The city’s Operating Budget for fiscal year 2026-27 totals $449.5 million, which represents a decrease of approximately $9.0 million or 2% as compared to the adopted fiscal year 2025-26 budget. A summary of the changes in each of the city’s programs will be discussed below. Further information about each program can be found in the individual program summary pages. BUDGET EXPENDITURE SUMMARY By Fund Type (In Millions)
General Fund
$
Budget
Budget
$
%
2025-26
2026-27
Change
Change
242.4 $
249.4 $
7.0
2.9%
Special Revenue
24.7
26.5
1.7
7.0%
Enterprise
146.9
129.7
(17.2)
-11.7%
Internal Service
44.5
43.9
(0.6)
-1.3%
Successor Agency Housing Trust
-
-
-
0.0%
(9.0)
-2.0%
Total
$
458.6 $
449.5 $
The General Fund contains most of the discretionary revenues that support core city services. However, this should not diminish the importance of the other operating funds as they also contribute to the array of services available within Carlsbad. The remainder of this section will provide more information about the budgeted expenditures by fund and program. Since fiscal year 2022-23, the city’s budget has prioritized the prudent use of taxpayer funds through times of economic uncertainty. Through maintenance and operations reductions to the elimination of 24 full-time equivalent positions, the city saved over $5 million of ongoing expenditures. While formal budget reductions are not a part of the fiscal year 2026-27 budget, responsible and prudent use of taxpayer dollars as well as maintaining a balanced budget now and in the future remain the top priorities. Following years of significant budget reductions, the City Manager continued to stress the importance of “holding the line” to departments when evaluating budgetary needs while also ensuring service levels provided to the community are prioritized. The fiscal year 2026-27 operating budget reflects critical increases including: Operating costs for the Monroe Street Pool as it’s set to reopen in September 2026 Six (6) EMT to Paramedic Firefighter reclassifications as part of a multi-year effort General election expenses 2028-2032 Strategic Plan facilitation Traffic signal and all way stop analysis Storm drain maintenance and street sweeping Six (6) Police Department positions for COPPS team (approved on Mar. 24, 2026) The total Operating Budget for the General Fund for fiscal year 2026-27 is $249.4 million, which is $7.0 million or 2.9% more than the previous year’s adopted budget of $242.4 million. These changes are discussed in more detail on the following pages.
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GENERAL FUND SUMMARY By Expenditure Type (In Millions)
Personnel
$
Budget
Budget
$
%
2025-26
2026-27
Change
Change
145.6 $
158.4
12.8
8.8%
Personnel, gross
147.6
160.4
12.8
8.7%
Vacancy Savings
(2.0)
(2.0)
-
0.0%
70.4
69.3
(1.1)
-1.5%
Maintenance & Operations Capital Outlay
2.7
0.5
(2.2)
-81.3%
Transfers
23.7
21.2
(2.5)
-10.7%
242.4 $
249.4 $
7.0
2.9%
Subtotal
$
Personnel costs make up 64% of the General Fund budget. The total personnel budget for fiscal year 2026-27 is $158.4 million, which is $12.8 million or 8.8% greater than the previous year’s total personnel budget of $145.6 million. This is driven by 12.08 additional full-time equivalent positions since prior year budget adoption, an increase in CalPERS’ unfunded liability payment, and negotiated compensation increases. In fiscal year 2026-27, the preliminary budget continues to propose including a line item for “vacancy savings.” This represents the estimated amount of budgeted personnel savings that will be realized by the end of the fiscal year. This mechanism is proposed for multiple reasons: (1) budgeting for vacancy savings reduces the total amount of the General Fund budget, (2) budgeted personnel costs more closely align with actual personnel costs over the course of the fiscal year, (3) historically, the city would bring recommendations to repurpose budget savings at the mid-year point of the fiscal year; this mechanism pre-emptively achieves that objective, and (4) budgeting vacancy savings will achieve alignment with the city’s 10-year forecast which has historically included a line item for vacancy savings. GENERAL FUND Personnel Costs (In Millions)
Salaries and Wages
$
Budget
Budget
$
%
2025-26
2026-27
Change
Change
95.9
104.3
8.4
8.7%
Salaries and Wages, gross
97.9
106.3
8.4
8.6%
Vacancy Savings
(2.0)
(2.0)
-
0.0%
Retirement Benefits
28.6
31.4
2.9
10.0%
Health Insurance
12.1
13.0
0.8
6.7%
Other Personnel Total
$
9.0
9.8
0.7
8.3%
145.6 $
158.4 $
12.8
8.8%
The table above shows the breakdown of personnel costs for the General Fund. General Fund salaries include full-time and part-time staff costs and are expected to increase in fiscal year 2026-27 by $8.4 million or 8.7%. The increase is primarily due to negotiated salary increases as well as the addition of 12.08 full-time equivalent positions since prior year budget adoption—six of which were approved by the City Council mid-year, and 6.08 of which are approved with the fiscal year 2026-27 budget. The full-time staffing changes are listed on the following page.
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Full-time equivalent staffing adjustments
General Fund (6.08): • Full time o (1) Monroe Pool Maintenance Worker – Parks & Recreation o (1) Assistant Fire Marshal – Fire • Part time o (-0.18) Reduction in hours for restructuring of the GUIDE program – Police o (0.4) Custodian at Safety Training Center – Fleet & Facilities o (2.65) Part-time lifeguards at Monroe Pool – Parks & Recreation o (0.74) Part-time aquatics instructors at Monroe Pool – Parks & Recreation o (0.73) Communications Coordinator – Communication & Engagement o (0.24) Additional Administrative Analyst hours – Communication & Engagement o (-0.5) Part-time conversion for Assistant Fire Marshal - Fire Non-General Fund: No adjustment in fiscal year 2026-27.
Retirement Benefits Cost CalPERS administers the city’s defined benefit pension plan and costs have been increasing in past years as CalPERS addresses a structural shortfall in plan assets to cover unfunded liabilities. As part of CalPERS’ strategy to ensure the plan’s sustainability, CalPERS deliberately raised participating agencies’ contributions over several years to improve the plan’s long-term funded status. The pension system continues to pursue tactics in support of its strategy to ensure plan sustainability such as investing in assets with the objective of achieving a long-term rate of return that meets or exceeds 6.8%. While pension costs are increasing, there is some downward pressure on costs as new employees receive lower pension benefits. CalPERS has taken significant steps in ensuring plan sustainability, but pension costs still pose a significant risk to the city’s cost profile. In support of CalPERS strategies for plan sustainability and as part of the city’s strategic, longIn support of CalPERS strategies for plan sustainability, and as part of the term approach to financial management, the city city’s strategic, long-term approach to actively manages its unfunded pension liability. Since financial management, the city fiscal year 2016-17, the City Council has approved actively manages its unfunded additional discretionary contributions of $56.4 pension liability. million to decrease future costs of the city’s unfunded actuarial liability and achieve a funded status of 80% in accordance with City Council Policy 86. In fiscal year 2023-24, the City Council also approved the establishment of a Section 115 Pension Trust and a $10.0 million initial contribution. Since then, the city has contributed an additional $7.5 million in fiscal year 2024-25 and $7.5 million in fiscal year 2025-26, bringing total contributions in the trust to date to $25 million. Assets in the trust will be available to the city to maintain an 80% funded status, mitigate pension rate volatility and potentially earn a higher rate of return than if the funds were left in the General Fund. This active management helps ensure that resources are available to fulfill the city’s contractual promises to its employees and minimizes the chance that funding these pension benefits will interfere with the city’s ability to provide essential public services.
B-15
Fiscal year 2026-27 reflects $31.4 million in retirement benefits costs, which represents an increase of $2.9 million or 10.0% compared to the previous year. Most of this increase is due to the CalPERS unfunded liability payment increasing by $1.6 million or 11% compared to the prior year. Increases in CalPERS’ required contributions are the result of their poor investment performance in fiscal year 2021-22 (-6.1%) and fiscal year 2022-23 (5.8%). Since that time, CalPERS has earned 9.3% and 11.6% in fiscal year 2023-24 and 2024-25, respectively, which will mitigate future increases over the next five years. General Fund Health Insurance costs in the General Fund are increasing from $12.1 million to $13.0 million. The increase is a result of anticipated rate increases in addition to changes in employee benefit elections. Other Personnel Costs include workers’ compensation expenses and other miscellaneous costs such as Medicare, unemployment and disability, which are increasing collectively by $0.7 million or 8.3%.
Maintenance and Operations costs represent 28% of the total General Fund budget and include the budgets for all program expenses other than personnel, capital outlay and transfers. Overall, total maintenance and operations costs are projected at $69.3 million, which represents a decrease of $1.1 million or 1.5% for fiscal year 2026-27 when compared to fiscal year 2025-26. Fiscal year 2021-22 and 2022-23 experienced inflationary increases ranging between 4.1% and 8.3% which drove the city’s need to contain costs and identify areas for reduction with minimal service level impacts. Much of the increase from fiscal year 2022-23 to 2023-24 was related to large increases in transfers out to fund long-term capital needs. While the increase in the fiscal year 2025-26 maintenance and operating budget was largely attributable to inflationary increases, Climate Action Plan initiatives, and fire mitigation efforts. In fiscal year 2026-27, the largest contributor to the overall decrease is the decrease in internal service department chargebacks. As mentioned in the Revenue section of the Overview, fleet and information technology chargebacks to external departments were lower than previous years in an effort to maintain the fund balance reserve levels at industry standards.
Capital Outlay includes budgeted equipment purchases over $10,000. Capital outlay purchases of $0.5 million are budgeted in the General Fund for fiscal year 2026-27. This represents a decrease of $2.2 million and is primarily due to the Fire Department’s request to purchase a second front-line aerial ladder truck in the prior year with no similar purchase occurring this year.
Operating Costs Associated with Capital Investments
As the city completes major capital projects, the costs of maintaining and operating the facilities and improvements, including additional personnel, if necessary, are added to departmental operating budgets. The city’s Capital Improvement Program and Strategic Digital Transformation Investment Program budgets include future projected operating impacts, which are estimated in the tables found in sections H and I, respectively.
Advances
Advances and repayments of prior advances are amounts anticipated to be transferred from the General Fund to other city funds with expectation of repayment in future years. No General Fund advances are included in this year’s operating budget.
B-16
Expenditures in fiscal year 2018-19 reflect an additional one-time $20 million payment to CalPERS to further bring down the city’s unfunded pension liability. Fiscal year 2019-20 included the addition of 34 new full-time employees but was largely offset due to the city’s response to the COVID-19 pandemic and the need to reduce discretionary spending as much as possible during that unprecedented time. Fiscal year 2020-21 expenditures reflect an additional $10 million one-time payment to CalPERS to further bring down the city’s unfunded pension liability. The increase was largely offset by the continuation of the COVID-19 pandemic and the city’s efforts to curb and defer expenditures. Additionally, a $57 million advance to the golf course was reclassified as a transfer out. Fiscal year 2021-22 expenditures reflect the plan to reinstate city services back to pre-pandemic levels and operationalize the City Council’s goals. The increase includes $5.9 million in one-time costs associated with the goals and the addition of 18 new full-time and 6.7 part-time employees which are mostly associated with the goals. The city again made an additional one-time $6.4 million payment to CalPERS to bring down the city’s unfunded pension liability. Fiscal year 2022-23 expenditures include the addition of 24 full-time employees as well as a number of new one-time requests to execute City Council goals, as well as a total of $10.6 million in one-time transfers to fund Workers’ Compensation, Risk Management, and Fleet Maintenance. Lastly, a $2 million allocation was approved to fund the Safer Streets local emergency. Fiscal year 2023-24 expenditures include budget reductions of approximately 3% of the base maintenance and operations budget, offset by negotiated compensation and contractual benefit increases. Additionally, a $5.2 million allocation was approved for the Carlsbad Village Trenching Project. Fiscal year 2024-25 expenditures include the elimination of 12 full-time equivalent positions offset by a $20 million one-time surplus use to General Capital Construction, Workers’ Compensation and Risk Management Funds.
B-17
Fiscal year 2025-26 expenditures include the addition of six (6) positions for the Police Department, four (4) full-time equivalent positions for various administrative functions, a $2.6 million one-time capital outlay as well as additional increases for retirement costs as a result of CalPERS’ negative investment performance in fiscal year 2021-22. The fiscal year 2026-27 expenditure budget includes the addition of six (6) positions in the Police Department which were approved in March 2026, additional operating costs for the reopening of Monroe Street Pool, additional costs to support phase two of the Wildfire Mitigation Plan, reclassification of six (6) EMT positions to Paramedic Firefighters, 2026 general election expenditures, as well as various operational increases due to inflation. Another way of looking at the General Fund budget is by Program Expenditures. The chart below compares the total fiscal year 2026-27 budget to those amounts adopted in the previous year. A detailed description of each department, its services, budget summary and department accomplishments and priorities can be found in the department program summary pages.
A detailed description of each department’s budget can be found in the department program summaries.
GENERAL FUND EXPENDITURES By Department (In Millions) Budget Budget
$
%
2025-26
Change
Change
Administrative Services - Administration
0.9 $
0.9
-
4.9%
Administrative Services - Finance
6.2
6.6
0.4
6.5%
Administrative Services - Human Resources Administrative Services - Economic Development
5.6 1.0
5.5 1.0
(0.1) -
-1.5% 1.2%
Community Services - Administration Community Services - Community Development Community Services - Housing & Homeless Services Community Services - Library & Cultural Arts
0.6 12.0 3.3 15.7
0.7 12.0 3.7 16.4
0.1 0.4 0.7
5.3% 0.6% 12.2% 4.7%
Community Services - Parks & Recreation
24.2
25.1
0.9
3.7%
Policy & Leadership Group
9.0
9.9
0.9
10.0%
Public Safety - Fire
47.3
49.2
1.9
4.0%
Public Safety - Police
64.1
68.5
4.4
6.8%
Public Works - Administration
1.5
1.5
-
0.2%
Public Works - Construction Mgmt. & Inspection
3.3
3.4
0.1
3.9%
Public Works - Environmental Sustainability
1.7
1.5
(0.2)
-11.3%
Public Works - Facilities
7.6
7.9
0.3
4.1%
Public Works - Transportation
12.2
12.5
0.3
2.5%
Non-Departmental
26.3
23.1
(3.2)
-12.3%
242.4 $
249.4
7.0
2.9%
Total
B-18
$
2026-27
$
Transfers are amounts anticipated to be transferred from the General Fund to another city fund. The transfers included in the adopted budget are as follows: •
•
•
$15.0 million split evenly between the Infrastructure Replacement Fund, General Capital Construction Fund and Technology Investment Capital Fund. This will fund major new construction, maintenance and replacement of city infrastructure and facilities, and the city’s future technology needs. This represents 6% of budgeted General Fund revenues and is in line with the requirements set forth in Council Policy 91, Long Term General Fund Capital Funding Policy. $5.0 million to the Storm Water Program for reimbursement of the General Fund portion of Storm Water expenses as well as a one-time operating subsidy to ensure the program maintains a positive fund balance. In recent years, the program has been drawing down on excess reserve funds; however, on an ongoing basis, future expenses are expected to far outpace future revenues. Without additional ongoing revenue, assistance from the General Fund may be needed on an annual basis. $1.2 million to the Median Maintenance and Street Tree Maintenance Special Revenue Funds to cover cash shortfalls, as annual assessments collected from property owners do not cover annual operating expenditures. Annual assessments can only be increased with a majority vote of the property owners.
General Fund Summary The operating budget for fiscal year 2026-27 provides a balanced General Fund budget for the coming fiscal year with General Fund revenue estimates exceeding General Fund budgeted expenditures by $0.2 million.
Fiscal Year 2026-27 General Fund Operating Budget
General Fund fiscal year 2026-27 revenue estimates General Fund fiscal year 2026-27 adopted expenditures Projected operating surplus for fiscal year 2026-27
General Fund Reserves
Projected unassigned balance at July 1, 2026 Plus: projected fiscal year 2026-27 surplus Equals: projected unassigned balance at June 30, 2027
$249.6 million $249.4 million $ 0.2 million
$150.6 million $0.2 million $150.8 million
Asset Replacement Reserve The city commits to maintaining its large machinery and equipment inventory. When an asset is procured, it begins depreciating the moment it is put into service and needs to be replaced at the end of its respective useful life. The city’s large equipment inventory represents approximately $60 million of the city’s total fixed assets. On an annual basis, this translates to a significant financial need and commitment to maintain the inventory. In an effort to not only prioritize these purchases, but to strategically plan for the ongoing financial impacts, staff recommend establishing a General Fund Asset Replacement Reserve. Separate and apart from the General Fund Reserve (City Council Policy 74), this Asset Replacement Reserve will serve as a mechanism for funding large machinery and equipment needs without impacting the General Fund Reserve or annual budget surplus year after year. As of fiscal year 2026-27, and for the next 10 fiscal years, a total of $7.2 million is projected to
B-19
be needed to fund asset replacement costs in the General Fund. The asset replacement schedule can be found in the appendices.
Changes in Other Funds
Special Revenue funds are budgeted at $26.5 million representing an increase in expenditures of 7.0% or $1.7 million when compared to fiscal year 2025-26. Other than a $1.2 million increase in rental assistance programming, and small increases across several other funds such as the Opioid Settlement Fund, Median Maintenance, and Citizens’ Option for Public Safety grant fund, spending in most Special Revenue Fund programs is expected to remain relatively consistent.
Enterprise funds total $129.7 million, which represents a decrease of $17.2 million or 11.7% over the fiscal year 2025-26 adopted budget. The majority of this decrease is due to a one-time budgeted transfer from the Recycled Water Operating Fund to the Recycled Water Connection Fund of $16.4 million that occurred in fiscal year 2025-26 and not required in the fiscal year 2026-27 budget. This is related to a State Water Resources Control Board loan reaching the payback period, whereby the Recycled Water Operating Fund will begin repayment while the proceeds of the loan will remain in the associated capital fund. Additionally, transfers from the Potable Water and Wastewater funds are decreasing. These large decreases are offset by increases in core operational costs for the city’s Utilities funds. The Potable Water and Recycled Water funds continue to operate and maintain critical infrastructure systems and provide the safe delivery of drinking water, conservation outreach and treated irrigation water. The cost of purchased water continues to increase, causing an overall increase in the Potable Water budget. The Wastewater fund provides reliable wastewater collection services. The budget for this fund’s increase is primarily due to an increase in the transfers out to fund its related capital improvement fund. The Solid Waste Management budget is also increasing due to inflationary impacts to operating costs, including the city’s street sweeping contract. The Internal Service funds total $43.9 million, which represents an overall decrease of $0.6 million or 1.3% over fiscal year 2025-26. Much of the increase in Workers’ Compensation costs is attributable to rising insurance liability rates, claims filed and administrative costs. Vehicle Replacement is the largest contributor to the decrease and driven by a lower number of more costly vehicles scheduled for purchase in the upcoming year; this is cyclical and based on fleet replacement schedules. Information Technology is $.08 million or 4.2% higher than the previous year, which is largely due to contractual service increases. The budget for the Successor Agency Housing Trust Fund for fiscal year 2026-27 is remaining at zero budget for fiscal year 2026-27. The Recognized Obligation Payments Schedule identifies financial commitments of the former Redevelopment Agency, including the remaining scheduled debt service payments on the Redevelopment Agency bond issue, the outstanding loan from the city’s General Fund and minor allowable administrative costs. The last debt service payment on the bond issue was completed in September 2023 and the city loan was paid off in fiscal year 2020-21. In fiscal year 202627, the city will work to complete the dissolution and close the fund.
B-20
Changes to Fund Balance While the projected cumulative change in the city’s non-major operating funds’ ending balances is not significant, three major operating funds are projected to see changes in their fund balances greater than 10%. The Water Operations Fund is expected to decrease by 21.4%, largely due to increasing operations costs, primarily water purchases. The Recycled Water Operations Fund and Wastewater Operations Fund are expected to decrease by 98.5% and 17.7%, respectively, by $1.1 million each. This is due to operating costs outpacing revenues in the upcoming fiscal year. All three funds have positive fund balances as of fiscal year end 2026-27, and it is anticipated the Utilities Department will complete a rate study in the subsequent year to address any ongoing funding challenges.
Changes between the proposed and adopted budget Staff made two changes since the preliminary operating budget, Strategic Digital Transformation Investment and Capital Improvement programs were presented to the City Council on May 19, 2026: • Operating Budget: Appropriated $294,926 to the Fire Department in the General Fund to fund the conversion of a part-time Fire Prevention Specialist to a full-time Assistant Fire Marshal; a one-time purchase of a half-ton, four-wheel-drive pickup truck for field inspections and wildfire mitigation operations; and ongoing annual programs costs for resident education and outreach materials and inspection software. The Wildfire Mitigation Plan Phase 1 Report was provided to the City Council on June 9, 2026, and these appropriations will support Phase 2 of the plan. • Capital Improvement Program: Appropriated $2,140,000 to the College Boulevard Extension project to re-commence conceptual design services. Sufficient funding exists for this one-time appropriation. This change resulted in an additional $2,140,000 appropriation to the “Other” funding source in fiscal year 2026-27, and reductions in the Transnet county transportation tax funding source of $200,000 in fiscal year 2028-29 and $540,000 in fiscal year 2029-30.
B-21
PERSO NNE L A L LOCA TION S Department
Adopted Budget 2023-24
Adopted Budget 2024-25
Adopted Budget 2025-26
Final* Budget 2025-26
Adopted Budget 2026-27
City Attorney
8.00
8.00
8.00
8.00
8.00
City Clerk Services
7.00
6.00
7.00
7.00
7.00
City Council
2.00
1.00
1.00
1.00
1.00
City Manager
7.00
6.00
6.00
6.00
6.00
City Treasurer
1.00
1.00
1.00
1.00
1.00
Communication & Engagement
9.00
9.00
8.00
8.00
8.00
Administrative Services - Administration
3.00
3.00
3.00
3.00
3.00
Economic Development
9.00
2.00
2.00
2.00
2.00
Finance
26.00
26.00
27.00
27.00
27.00
Human Resources
18.00
17.00
18.00
18.00
18.00
Information Technology
43.00
48.00
48.00
48.00
48.00
Community Services - Administration
2.00
2.00
2.00
2.00
2.00
Community Development
52.00
51.00
51.00
51.00
51.00
Housing & Homeless Services
16.00
16.00
16.00
16.00
16.00
Library & Cultural Arts
53.00
51.00
51.00
51.00
51.00
Parks & Recreation
59.00
58.00
58.00
58.00
59.00
Fire
124.00
124.00
124.00
124.00
125.00
Police
187.00
187.00
193.00
199.00
199.00
Public Works - Administration
6.00
6.00
5.70
5.70
5.50
Construction Management & Inspection
15.00
15.00
15.00
15.00
15.00
Environmental Sustainability
17.50
16.50
17.00
17.00
17.00
Fleet & Facilities
35.95
35.95
37.20
37.20
37.20
Transportation
43.80
43.80
43.80
43.80
43.80
Utilities
63.50
63.50
62.30
62.30
62.50
Total Full-Time Personnel Hourly Full-Time Equivalent Personnel Total
807.75 167.84 975.59
796.75 166.79 963.54
805.00 168.84 973.84
811.00 168.84 979.84
813.00 172.92 985.92
*The ending budget for 2025-26 takes into account full-time personnel changes approved mid-year for the addition of (6.0) FTE in the Police Department.
B-22
S CHE DU LE OF PROJE C TED FU ND BAL AN CE Beginning Fund General Fund
$
Projected
Projected
Ending
Change as % of
Fund Balance
Estimated
Estimated
Fund Balance
July 1, 2025
July 1, 2025
Revenues
Expenditures
June 30, 2026
Fund Balance
$ 242,086,488
$ 150,211,464 *
-2.5%
-2.3%
154,107,692 * $ 243,290,260
Special Revenue Funds Affordable Housing Agricultural Mitigation Fee Buena Vista Channel Maintenance District
16,185,641
1,410,214
1,779,519
15,816,336
961,008
32,294
25,864
967,438
0.7%
1,650,936
162,211
259,068
1,554,079
-5.9% 81.2%
Citizens' Option for Public Safety
669,378
971,477
428,146
1,212,709
Community Development Block Grant
584,752
2,257,707
1,701,327
1,141,132
95.2%
Continuum of Care
(325,092)
1,589,233
843,799
420,342
-229.3%
Cultural Arts Donations Encampment Resolution Fund Habitat Mitigation Fee Library and Arts Endowments
281,406
48,035
97,675
231,766
-17.6%
5,495,782
5,666,335
981,388
10,180,729
85.3%
-
-
-
-
0.0%
287,703
9,759
-
297,462
3.4% 4.0%
Library Gifts and Bequests
2,425,871
433,911
336,595
2,523,187
Lighting and Landscaping District 2
6,680,026
1,004,201
408,501
7,275,726
8.9%
Local Cable Infrastructure
283,528
224,635
293,000
215,163
-24.1%
Median Maintenance District
338,035
1,362,868
1,452,402
248,501
-26.5%
Opioid Settlement Fund
982,315
164,659
113,606
1,033,368
5.2%
1,113,493
36,068
59,823
1,089,738
-2.1%
Permanent Local Housing Allocation
18,637
474,657
488,440
4,854
-74.0%
Police Asset Forfeiture
348,717
77,762
64,608
361,871
3.8%
Public Safety Grants
-
405,158
303,246
101,912
0.0%
Recreation Donations
371,229
33,202
25,306
379,125
2.1%
Rental Assistance
463,594
15,974,416
15,938,397
499,613
7.8%
Parking In Lieu Fee
Senior Donations
329,456
224,582
16,683
537,355
63.1%
Street Lighting Maintenance District
2,611,113
1,082,694
1,206,227
2,487,580
-4.7%
Street Tree Maintenance District
780,935
997,927
1,026,772
752,090
-3.7%
Tyler Court Apartments
299,562
1,724,293
724,488
1,299,367
333.8%
Total Special Revenue Funds
42,838,025
36,368,298
28,574,880
50,631,443
18.2%
Enterprise Funds Water Operations
20,794,853
54,390,290
66,728,534
8,456,609
-59.3%
Recycled Water Operations
11,333,321
14,781,188
24,975,236
1,139,273
-90.0% -48.1%
Wastewater Operations
12,541,249
29,919,208
35,953,084
6,507,373
Solid Waste Management
8,432,574
11,712,682
6,269,886
13,875,370
64.5%
Golf Course
9,036,691
12,801,945
10,487,819
11,350,817
25.6%
Total Enterprise Funds
62,138,688
123,605,313
144,414,559
41,329,442
-33.5%
Workers' Compensation
270,209
8,600,819
7,263,356
1,607,672
495.0%
Risk Management
314,834
5,805,401
5,521,965
598,270
-90.0%
Vehicle Maintenance
737,200
4,360,003
4,590,046
507,157
-31.2%
Vehicle Replacement
26,998,887
9,852,891
5,100,000
31,751,778
17.6%
Information Technology
11,518,351
20,423,040
20,397,138
11,544,253
0.2%
Total Internal Service Funds
39,839,481
49,042,154
42,872,505
46,009,130
15.5%
238,044
8,078
246,122
3.4%
299,161,930
$ 452,314,103
$ 288,427,601
-3.6%
Internal Service Funds
Successor Agency Housing Trust Fund Total Operating Funds
$
$ 457,948,432
* For the General Fund only, this represents unassigned fund balance. The General Fund projected ending fund balance as of June 30, 2026 includes an increase of $2.9 million because of a reduction in the Asset Replacement Reserve in the General Fund that occurred on March 24, 2026. The Asset Replacement Reserve decreased from $10.5 million to $7.6 million because the Police Department determined it did not need its original full allocation for radio replacements. An adjustment was also made for a one-time use of General Fund reserves in the form of an $8 million transfer to the Infrastructure Replacement Fund.
B-23
S CHE DU LE OF PROJE C TED FU ND BAL AN CE Beginning Fund General Fund
$
Projected
Projected
Ending
Change as % of
Fund Balance
Estimated
Adopted
Fund Balance
June 30, 2026
July 1, 2026
Revenues
Budget
June 30, 2027
Fund Balance
$ 249,391,083
$ 150,813,489 *
150,611,464 * $ 249,593,108
0.1%
Special Revenue Funds Affordable Housing Agricultural Mitigation Fee
15,816,336
790,093
587,022
16,019,407
1.3%
967,438
31,687
-
999,125
3.3%
Buena Vista Channel Maintenance District
1,554,079
154,699
112,282
1,596,496
2.7%
Citizens' Option for Public Safety
1,212,709
324,403
625,322
911,790
-24.8%
Community Development Block Grant
8.3%
1,141,132
569,758
475,561
1,235,329
Continuum of Care
420,342
1,679,846
1,679,846
420,342
0.0%
Cultural Arts Donations
231,766
46,770
159,500
119,036
-48.6%
10,180,729
10,319,503
1.4%
Encampment Resolution Fund
147,015
8,241
-
-
-
-
297,462
9,596
6,000
301,058
1.2%
Library Gifts and Bequests
2,523,187
368,001
547,699
2,343,489
-7.1%
Lighting and Landscaping District 2
7,275,726
1,009,402
416,500
7,868,628
8.2%
215,163
224,907
284,586
155,484
-27.7%
248,501
1,526,946
1,564,413
211,034
-15.1%
1,033,368
293,472
254,430
1,072,410
3.8%
729,738 **
35,224
63,500
701,462
-3.9% 100.3%
Habitat Mitigation Fee Library and Arts Endowments
Local Cable Infrastructure Median Maintenance District Opioid Settlement Fund Parking In Lieu Fee Permanent Local Housing Allocation
0.0%
4,854
211,366
206,500
9,720
Police Asset Forfeiture
361,871
12,576
175,000
199,447
-44.9%
Public Safety Grants
101,912
215,750
77,250
240,412
-135.9%
Recreation Donations
379,125
32,030
81,200
329,955
-13.0%
Rental Assistance
499,613
16,366,513
15,931,592
934,534
87.1%
Senior Donations
537,355
33,366
33,500
537,221
0.0%
2,487,580
1,090,012
1,318,602
2,258,990
-9.2% -67.4%
Street Lighting Maintenance District Street Tree Maintenance District
752,090
557,981
1,065,127
244,944
Tyler Court Apartments
1,299,367
906,769
810,353
1,395,783
7.4%
Total Special Revenue Funds
50,271,443
26,638,182
26,484,026
50,425,599
0.3%
Water Operations
8,456,609
62,754,668
64,563,333
6,647,944
-21.4%
Recycled Water Operations
1,139,273
11,317,795
12,439,690
17,378
-98.5%
Wastewater Operations
6,507,373
32,796,816
33,945,724
5,358,465
-17.7%
Solid Waste Management
13,875,370
8,442,602
7,236,564
15,081,408
8.7%
Golf Course
11,350,817
11,915,000
11,540,000
11,725,817
3.3%
Total Enterprise Funds
41,329,442
127,226,881
129,725,311
38,831,012
-6.1%
1,607,672
9,015,015
7,782,924
2,839,763
76.6%
598,270
6,218,127
5,498,085
1,318,312
120.4%
Vehicle Maintenance
507,157
5,081,680
4,839,570
749,267
47.7%
Vehicle Replacement
31,751,778
6,578,848
5,111,501
33,219,125
4.6%
Information Technology
11,544,253
20,897,692
20,699,364
11,742,581
1.7%
Total Internal Service Funds
46,009,130
47,791,362
43,931,444
49,869,048
8.4%
246,122
7,955
254,077
3.2%
288,467,601
$ 451,257,488
$ 290,193,225
0.6%
Enterprise Funds
Internal Service Funds Workers' Compensation Risk Management
Successor Agency Housing Trust Fund Total Operating Funds
$
$ 449,531,864
* For the General Fund only, this represents unassigned fund balance. The General Fund projected beginning fund balance as of July 1, 2026 includes an adjustment to the asset replacement reserve, reducing the previous year's $7.6 million allocation to $7.2 million. **$360,000 of this fund balance instead appears in the Capital Improvement Program Budget for capital costs applicable to this fund's use.
B-24
S CHE DU LE OF REVEN UE E S TIM ATES Revenue Source
2025-26
2026-27
Change as %
Difference
2024-25
Estimated
Estimated
of 2025-26
2025-26 to
Actuals
Revenue
Revenue
Estimated
2026-27
General Fund Taxes Property Tax
$
96,897,959
$
100,142,982
104,719,039
4.6%
Sales Tax
55,867,938
54,386,009
55,021,692
1.2%
635,683
Transient Occupancy Tax
35,509,738
35,553,625
35,922,721
1.0%
369,096
Franchise Tax
6,836,876
7,409,253
7,549,953
1.9%
140,700
Business License Tax
6,230,578
7,071,422
7,000,181
-1.0%
(71,241)
Transfer Tax
1,581,880
1,724,744
1,733,368
0.5%
8,624
202,924,969
206,288,035
211,946,954
2.7%
5,658,919
Total Taxes
$
$
4,576,057
Intergovernmental Homeowners Exemption
319,005
300,000
306,000
2.0%
6,000
Other Intergovernmental
1,968,934
1,021,980
987,826
-3.3%
(34,154)
Total Intergovernmental
2,287,939
1,321,980
1,293,826
-2.1%
(28,154)
Building Permits
2,052,227
1,650,000
2,000,000
21.2%
350,000
Other Licenses and Permits
1,393,067
1,302,697
1,410,697
8.3%
108,000
Total Licenses And Permits
3,445,294
2,952,697
3,410,697
15.5%
458,000
Licenses and Permits
Charges for Services Planning Fees
800,169
890,200
952,000
6.9%
61,800
Building Department Fees
749,719
1,170,000
890,000
-23.9%
(280,000)
Engineering Fees
1,028,200
943,000
980,000
3.9%
37,000
Ambulance Fees
7,019,499
7,055,000
6,800,000
-3.6%
(255,000)
Recreation Fees
3,297,511
3,338,864
3,451,914
3.4%
113,050
Other Charges or Fees
2,153,017
1,650,128
1,890,400
14.6%
240,272
Total Charges For Services
15,048,115
15,047,192
14,964,314
-0.6%
(82,878)
394,978
426,035
393,000
-7.8%
(33,035)
Income from Investments and Property
15,260,783
10,281,939
11,549,886
12.3%
1,267,947
Interdepartmental Charges
5,462,411
5,347,999
5,531,217
3.4%
183,218
556,008
1,624,383
503,214
-69.0%
(1,121,169)
249,593,108
2.6%
Fines and Forfeitures
Other Revenue Sources Total General Fund
$
245,380,497
$
243,290,260
$
$
6,302,848
Interest is calculated on an amortized cost basis.
B-25
S CHE DU LE OF REVEN UE E S TIM ATES Revenue Source
2025-26
2026-27
Change as %
Difference
2024-25
Estimated
Estimated
of 2025-26
2025-26 to
Actuals
Revenue
Revenue
Estimated
2026-27
Special Revenue Funds Affordable Housing Affordable Housing Fees
$
264,268
Property Tax
-
Interest Income
998,458
Other Revenue Total Affordable Housing
$
366,964 1,027,925
$
120,000
-67.3%
-
0.0%
$
(246,964) -
665,093
-35.3%
(362,832)
94,953
15,325
5,000
-67.4%
(10,325)
1,357,679
1,410,214
790,093
-44.0%
(620,121)
Agricultural Mitigation Fee -
-
-
0.0%
-
Interest Income
Agricultural Mitigation Fees
57,145
32,294
31,687
-1.9%
(607)
Total Agriculutural Mitigation Fee
57,145
32,294
31,687
-1.9%
(607)
Assessment Fees
119,567
106,027
100,000
-5.7%
(6,027)
Interest Income
89,505
56,184
54,699
-2.6%
(1,485)
Total Buena Vista Channel Maintenance
209,072
162,211
154,699
-4.6%
(7,512)
State Funding (AB3229)
260,392
948,242
300,000
-68.4%
(648,242)
Interest Income
35,632
23,235
24,403
5.0%
1,168
Total Citizens' Option For Public Safety
296,024
971,477
324,403
-66.6%
(647,074)
Federal Grant
551,332
1,500,000
534,758
-64.4%
(965,242)
Interest Income
87,096
15,828
5,000
-68.4%
(10,828)
Other Revenue
510,371
741,879
30,000
-96.0%
(711,879)
1,148,799
2,257,707
569,758
-74.8%
(1,687,949)
Buena Vista Channel Maintenance
Citizens' Option for Public Safety
Community Development Block Grant
Total Community Dev. Block Grant Continuum of Care Federal Grant
861,739
1,589,233
1,679,846
5.7%
90,613
Total Cultural Arts Donations
861,739
1,589,233
1,679,846
5.7%
90,613
Donations
55,390
38,550
38,550
0.0%
-
Interest Income
17,145
9,485
8,220
-13.3%
(1,265)
Total Cultural Arts Donations
72,535
48,035
46,770
-2.6%
(1,265)
Cultural Arts Donations
B-26
S CHE DU LE OF REVEN UE E S TIM ATES Revenue Source
2025-26
2026-27
Change as %
Difference
2024-25
Estimated
Estimated
of 2025-26
2025-26 to
Actuals
Revenue
Revenue
Estimated
2026-27
Special Revenue Funds - Continued Encamptment Resolution Fund State Grant Interest Income Total Community Dev. Block Grant
3,954,460
5,492,180
-
-100.0%
92,136
174,155
147,015
-15.6%
(5,492,180) (27,140)
4,046,596
5,666,335
147,015
-97.4%
(5,519,320)
Habitat Mitigation Fee Mitigation Fees
-
-
-
0.0%
Interest Income
346
-
-
0.0%
-
Total Habitat Mitigation Fee
346
-
-
0.0%
-
Library And Arts Endowment Fund Interest Income
15,676
9,759
9,596
-1.7%
(163)
Total Library And Arts Endowment Fund
15,676
9,759
9,596
-1.7%
(163)
Gifts and Bequests
713,960
353,552
291,741
-17.5%
(61,811)
Interest Income
115,240
80,359
76,260
-5.1%
(4,099)
Total Library Gifts/Bequests
829,275
433,911
368,001
-15.2%
(65,910)
Assessment Fees
765,283
775,700
775,900
0.0%
200
Interest Income
339,118
228,501
233,502
2.2%
5,001
1,104,401
1,004,201
1,009,402
0.5%
5,201
Cable Fees
242,147
220,000
220,000
0.0%
-
Interest Income
16,963
4,635
4,907
5.9%
272
Total Local Cable Infrastructure Fund
259,110
224,635
224,907
0.1%
272
Library Gifts/Bequests
Lighting And Landscaping District 2
Total Lighting And Landscaping Dist. 2 Local Cable Infrastructure Fund
Median Maintenance Assessment Fees
371,794
350,000
350,000
0.0%
-
Other
1,033,408
1,012,868
1,176,946
16.2%
164,078
Total Median Maintenance
1,405,202
1,362,868
1,526,946
12.0%
164,078
Settlements
69,641
123,688
254,430
105.7%
130,742
Other Revenue
37,036
40,971
39,042
-4.7%
(1,929)
Total Opioid Settlement
106,677
164,659
293,472
78.2%
128,813
Opioid Settlement Fund
Parking In Lieu -
-
-
0.0%
-
Interest Income
Parking In Lieu Fees
63,365
36,068
35,224
-2.3%
(844)
Total Parking In Lieu
63,365
36,068
35,224
-2.3%
(844)
(256,244)
Permanent Local Housing Allocation State Grant
317,783
466,244
210,000
-55.0%
Interest Income
16,169
8,413
1,366
-83.8%
(7,047)
Total Police Grants
333,952
474,657
211,366
-55.5%
(263,291)
Asset Forfeitures
19,693
64,837
-
-100.0%
(64,837)
Interest Income
20,392
12,925
12,576
-2.7%
(349)
Total Police Asset Forfeiture
40,085
77,762
12,576
-83.8%
(65,186)
Police Asset Forfeiture
B-27
S CHE DU LE OF REVEN UE E S TIM ATES Revenue Source
2025-26
2026-27
Change as %
Difference
2024-25
Estimated
Estimated
of 2025-26
2025-26 to
Actuals
Revenue
Revenue
Estimated
2026-27
Special Revenue Funds - Continued Public Safety Grants Federal Grant
334,523
245,158
138,500
-43.5%
State Grant
6,603
160,000
77,250
-51.7%
(82,750)
341,126
405,158
215,750
-46.8%
(189,408)
Donations
52,075
20,700
19,300
-6.8%
(1,400)
Interest Income
18,818
12,502
12,730
1.8%
228
Total Recreation Donations
70,893
33,202
32,030
-3.5%
(1,172)
Federal Grant
14,794,213
15,764,531
16,154,535
2.5%
390,004
Other Revenue
10,786
209,885
211,978
1.0%
2,093
14,804,999
15,974,416
16,366,513
2.5%
392,097
Donations
1,405
187,000
1,000
-99.5%
(186,000)
Other Revenue
21,275
22,000
15,000
-31.8%
(7,000)
Interest Income
17,782
15,582
17,366
11.5%
1,784
Total Senior Donations
40,462
224,582
33,366
-85.1%
(191,216)
Assessment Fees
743,727
740,000
740,000
0.0%
-
Other Revenue
205,811
259,400
259,400
0.0%
-
Interest Income
163,165
83,294
90,612
8.8%
7,318
Total Street Lighting
1,112,703
1,082,694
1,090,012
0.7%
7,318
Assessment Fees
472,522
470,000
470,000
0.0%
-
Other Revenue
533,750
527,927
87,981
-83.3%
(439,946)
1,006,272
997,927
557,981
-44.1%
(439,946)
Rental Income
746,299
818,088
794,893
-2.8%
(23,195)
Other Revenue
6,814
906,205
111,876
-87.7%
(794,329)
753,113
1,724,293
906,769
-47.4%
(817,524)
26,638,182
-26.8%
Total Police Grants
(106,658)
Recreation Donations
Rental Assistance
Total Rental Assistance Senior Donations
Street Lighting
Street Tree Maintenance
Total Street Tree Maintenance Tyler Court Apartments
Total Tyler Court Apartments
Total Special Revenue Funds
B-28
$
30,337,246
$
36,368,298
$
$
(9,730,116)
S CHE DU LE OF REVEN UE E S TIM ATES Revenue Source
2025-26
2026-27
Change as %
Difference
2024-25
Estimated
Estimated
of 2025-26
2025-26 to
Actuals
Revenue
Revenue
Estimated
2026-27
Enterprise Funds Water Operations Water Sales
37,258,021
18.8%
Ready-to-Serve charge
$
14,087,067
16,578,803
19,126,929
15.4%
2,548,126
Property Tax
4,528,062
4,412,291
4,454,165
1.0%
41,874
New Account Charges
107,856
110,000
110,000
0.0%
-
Back-Flow Program Fees
184,438
170,000
178,500
5.0%
8,500
Penalty Fees
453,881
468,467
456,000
-2.7%
(12,467)
Interest Income
1,646,260
668,000
610,863
-8.6%
(57,137)
Engineering Overhead
97,669
43,043
100,000
132.3%
56,957
Service Connection Fees
43,214
34,998
35,000
0.0%
2
Other Revenue
725,698
550,270
425,190
-22.7%
(125,080)
50,486,372
54,390,290
62,754,668
15.4%
8,364,378
Water Sales
7,345,800
8,548,100
8,632,333
1.0%
84,233
Ready-to-Serve charge
1,449,078
1,549,702
1,585,412
2.3%
35,710
Property Tax
1,065,715
848,325
925,927
9.2%
77,602
-
-
-
0.0%
-
(335,048)
(172,565)
-
-100.0%
172,565
Total Water Operations
28,612,227
$
31,354,418
$
$
5,903,603
Recycled Water Operations
Recycled Water Credits Interest Income Other Revenue
2,221,704
4,007,626
174,123
-95.7%
(3,833,503)
Total Recycled Water Operations
11,747,249
14,781,188
11,317,795
-23.4%
(3,463,393)
Wastewater Operations Service Charges
26,191,425
29,352,406
32,287,647
10.0%
2,935,241
Misc. Sewer
11,396
3,259
3,585
10.0%
326
Engineering Overhead
(43,750)
113,000
113,000
0.0%
-
Penalty Fees
168,088
160,000
160,000
0.0%
-
Interest Income
698,400
222,296
162,512
-26.9%
(59,784)
Other Revenue Total Wastewater Operations
270,059
68,247
70,072
2.7%
1,825
27,295,618
29,919,208
32,796,816
9.6%
2,877,608
905,542
949,244
940,000
-1.0%
(9,244)
-
-
-
0.0%
-
0.0%
-
Solid Waste Management Recycling Fees (AB939) Penalty Fees
1,500,000
1,471,505
Trash Surcharge
1,500,000
Interest Income
488,510
375,591
402,602
7.2%
27,011
Other Revenue
1,100,955
8,887,847
5,600,000
-37.0%
(3,287,847)
Total Solid Waste Management
3,966,512
11,712,682
8,442,602
-27.9%
(3,270,080)
Golf Course Operations 11,720,977
12,319,948
11,428,000
-7.2%
(891,948)
Interest Income
Charges for Services
522,543
390,067
395,000
1.3%
4,933
Other Revenue
107,103
91,930
92,000
0.1%
70
12,350,623
12,801,945
11,915,000
-6.9%
(886,945)
127,226,881
2.9%
Total Golf Course Operations Total Enterprise Funds
$
105,846,374
$
123,605,313
$
$
3,621,568
B-29
S CHE DU LE OF REVEN UE E S TIM ATES Revenue Source
2025-26
2026-27
Change as %
Difference
2024-25
Estimated
Estimated
of 2025-26
2025-26 to
Actuals
Revenue
Revenue
Estimated
2026-27
Internal Service Funds Workers' Compensation Interdepartmental Charges
$
6,883,620
$
7,226,070
$
7,766,400
7.5%
1,248,615
0.7%
9,157
-100.0%
(135,291)
4.8%
414,196
Interest Income
1,607,726
1,239,458
Other Revenue
7,428,099
135,291
Total Workers' Compensation
15,919,445
8,600,819
9,015,015
-
$
540,330
Risk Management Interdepartmental Charges
7,746,820
5,440,030
5,774,880
6.2%
334,850
Interest Income
421,132
318,539
398,247
25.0%
79,708
Other Revenue
67,215
46,832
45,000
-3.9%
(1,832)
8,235,167
5,805,401
6,218,127
7.1%
412,726
710,161
Total Risk Management Vehicle Maintenance Interdepartmental Charges
3,866,928
4,312,969
5,023,130
16.5%
Interest Income
43,234
27,034
23,550
-12.9%
(3,484)
Other Revenue
25,292
20,000
35,000
75.0%
15,000
3,935,454
4,360,003
5,081,680
16.6%
721,677
Interdepartmental Charges
5,947,531
8,777,154
5,416,503
-38.3%
(3,360,651)
Interest Income
1,400,969
976,102
1,012,345
3.7%
36,243
Other Revenue
1,109,139
99,635
150,000
50.6%
50,365
Total Vehicle Replacement
8,457,639
9,852,891
6,578,848
-33.2%
(3,274,043)
Total Vehicle Maintenance Vehicle Replacement
Information Technology Interdepartmental Charges
19,149,027
20,038,997
20,514,125
2.4%
475,128
Interest Income
585,752
384,043
383,567
-0.1%
(476)
Other Revenue
1,631,852
-
-
0.0%
-
Total Information Technology
21,366,631
20,897,692
2.3%
474,652
47,791,362
-2.6%
Total Internal Service Funds
$
57,914,336
20,423,040 $
49,042,154
$
$
(1,250,792)
Trust Funds Successor Agency Housing Fund -
-
-
0.0%
-
Interest Income
Property Tax Increment
125,470
8,078
7,955
-1.5%
(123)
Total Successor Agency Housing Fund
125,470
8,078
7,955
-1.5%
(123)
Total Trust Funds
$
125,470
$
8,078
$
7,955
-1.5%
$
(123)
Total Operating Funds
$
439,603,923
$
452,314,103
$
451,257,488
-0.2%
$
(1,056,615)
B-30
S CHE DU LE OF B UD GE T EX PEN DI TURES 2023-24 Actuals
Department General Fund Policy And Leadership Group City Council City Attorney City Clerk City Manager City Treasurer Communication & Engagement Total Policy And Leadership Group
$
520,658 2,092,350 1,112,722 2,133,835 206,487 1,983,038 8,049,090
2025-26 Estimated Expenditures
2024-25 Actuals
$
565,679 2,156,141 1,261,756 2,098,691 246,596 1,927,770 8,256,633
$
640,000 2,377,000 1,450,000 2,150,000 228,600 1,937,000 8,782,600
2025-26 Budget
$
641,472 2,366,301 1,493,122 2,070,890 320,948 2,119,816 9,012,549
2026-27 Budget
$
Change as % of 2025-26 Budget
659,910 2,584,183 1,830,702 2,306,771 383,892 2,144,557 9,910,015
2.9% 9.2% 22.6% 11.4% 19.6% 1.2% 10.0%
Administrative Services Administration Finance Human Resources Economic Development Total Administrative Services
670,554 5,420,719 4,354,491 2,576,673 13,022,437
707,777 5,736,831 4,639,596 956,351 12,040,555
902,600 6,181,004 5,295,000 963,570 13,342,174
889,826 6,181,006 5,600,534 963,571 13,634,937
933,301 6,583,671 5,515,758 974,614 14,007,344
5% 6.5% -1.5% 1.1% 2.7%
Community Services Community Services Administration Community Development Housing & Homeless Services Library & Cultural Arts Parks & Recreation Total Community Services
594,430 13,100,730 13,139,996 21,252,800 48,087,956
608,643 13,699,391 14,153,116 22,076,084 50,537,234
720,073 12,047,450 3,596,400 15,444,208 22,830,253 54,638,384
647,219 11,975,702 3,317,186 15,662,271 24,241,322 55,843,700
681,402 12,044,998 3,723,022 16,398,558 25,132,348 57,980,328
5.3% 0.6% 12% 4.7% 3.7% 3.8%
Public Safety Fire Police Total Public Safety
39,481,750 56,634,858 96,116,608
41,841,218 58,395,466 100,236,684
46,240,148 64,403,833 110,643,981
47,290,269 64,138,292 111,428,561
49,159,771 68,523,708 117,683,479
4.0% 6.8% 5.6%
Public Works Public Works Administration Construction Management & Inspection Environmental Sustainability Fleet & Facilities Transportation Total Public Works
1,557,313 2,863,158 1,250,959 7,532,550 9,463,214 22,667,194
1,523,469 2,854,032 1,293,622 7,158,113 10,311,161 23,140,397
1,454,000 3,160,000 1,631,736 6,791,195 10,391,466 23,428,397
1,488,222 3,250,987 1,704,367 7,584,723 12,173,662 26,201,961
1,490,677 3,378,271 1,511,940 7,894,636 12,478,307 26,753,831
0.2% 3.9% -11.3% 4.1% 2.5% 2.1%
Miscellaneous Non-Departmental Expenditures Community Contributions & Village trenching COVID-related Dues & Subscriptions Legal Services Other Miscellaneous Expenditures Personnel Related Professional Services Property Tax & Other Administration Vacancy savings Total Miscellaneous Non-Departmental Expenditures
24,163 82,099 194,716 57,690 117,265 37,458 734,435 1,247,826
55,487 85,813 666,137 111,605 120,462 37,756 787,459 1,864,719
2,200 89,246 350,000 115,000 130,000 38,889 826,498 1,551,833
90,000 1,000,000 150,000 2,000,000 39,000 800,000 (2,000,000) 2,079,000
94,000 800,000 150,000 1,500,000 41,000 800,000 (2,000,000) 1,385,000
4.4% -20.0% 0.0% -25.0% 5.1% 0.0% 0.0% -33.4%
B-31
S CHE DU LE OF B UD GE T EX PEN DI TURES 2023-24 Actuals
Department General Fund - Continued Transfers Transfer to General Capital Construction Fund Transfer to Infrastructure Replacement Fund Transfer to Technology Investment Capital Fund Transfer To LLD#1 (Medians & Trees) Transfer To Storm Water Program Transfer to Fleet Maintenance Transfer to Fleet Replacement Transfer to Risk Management Transfer to Workers' Compensation Fund Other Miscellaneous Transfers Total Transfers
$
2025-26 Estimated Expenditures
2024-25 Actuals
11,600,000 4,200,000 4,200,000 1,570,000 340,000 10,200,000 1,300,000 33,410,000
$
18,579,226 4,779,226 4,779,226 1,500,000 350,000 560,000 7,000,000 37,547,678
$
8,882,966 8,882,966 2,433,187 1,500,000 8,000,000 29,699,119
2025-26 Budget
$
8,882,966 8,882,966 2,433,187 1,500,000 2,000,000 23,699,119
2026-27 Budget
$
Change as % of 2025-26 Budget
4,990,362 4,990,362 4,990,362 1,200,000 5,000,000 21,171,086
-43.8% -43.8% 105.1% -20.0% 150.0% -10.7%
Total Miscellaneous Non-Departmental
34,657,826
39,412,397
31,250,952
25,778,119
22,556,086
-12.5%
Subtotal General Fund
222,601,111
233,623,900
242,086,488
241,899,827
248,891,083
2.9%
500,000
500,000
0.0%
City Council Contingency Account Total General Fund Special Revenue Funds Affordable Housing Agricultural Mitigation Fee Buena Vista Channel Maintenance Citizens' Option For Public Safety Community Development Block Grant Continuum of Care Cultural Arts Donations Encampment Resolution Fund Habitat Mitigation Fee Library And Arts Endowment Fund Library Gifts/Bequests Lighting And Landscaping District 2 Local Cable Infrastructure Fund Median Maintenance Opioid Settlement Fund Parking In Lieu Permanent Local Housing Allocation Police Asset Forfeiture Public Safety Grants Recreation Donations Rental Assistance Senior Donations Street Lighting Street Tree Maintenance Tyler Court Apartments Total Special Revenue Funds
B-32
-
-
-
$ 222,601,111
$ 233,623,900
$ 242,086,488
$ 242,399,827
$
249,391,083
2.9%
$
$
$
$
$
587,022 112,282 625,322 475,561 1,679,846 159,500 8,241 6,000 547,699 416,500 284,586 1,564,413 254,430 63,500 206,500 175,000 77,250 81,200 15,931,592 33,500 1,318,602 1,065,127 810,353 26,484,026
-0.4% 0.0% 26.8% 0.0% 5.7% 38.9% -21.6% 0.0% -11.4% 3.7% -2.2% 10.5% 145.6% 4.1% -54.1% 84.2% 0.0% 0.0% 7.8% 0.0% 1.9% 6.1% 24.2% 7.0%
$
992,739 220,324 136,015 246,368 583,498 461,076 101,482 1,240,345 29,750 234,574 297,439 509,569 1,322,678 23,407 55,631 366,481 54,783 280,076 53,805 12,954,684 19,626 1,114,254 770,326 793,769 22,862,699
$
399,012 99,485 95,363 299,751 1,017,186 861,738 78,062 4,050,553 36,659 271,411 337,866 470,094 1,407,489 69,640 57,120 359,921 49,000 381,034 25,869 14,905,252 13,402 1,238,623 652,575 578,215 27,755,320
$
1,779,519 25,864 259,068 428,146 1,701,327 843,799 97,675 981,388 336,595 408,501 293,000 1,452,402 113,606 59,823 488,440 64,608 303,246 25,306 15,938,397 16,683 1,206,227 1,026,772 724,488 28,574,880
$
589,379 112,282 493,147 475,561 1,588,973 114,790 10,514 6,000 618,340 401,500 290,956 1,415,287 103,606 61,000 450,297 95,000 77,250 81,200 14,774,585 33,500 1,294,158 1,003,604 652,310 24,743,239
$
S CHE DU LE OF B UD GE T EX PEN DI TURES 2023-24 Actuals
Department Enterprise Funds Water Operations Recycled Water Operations Wastewater Operations Solid Waste Management Golf Course Operations Total Enterprise Funds
66,728,534 24,975,236 35,953,084 6,269,886 10,487,819 $ 144,414,559
65,904,714 28,569,976 35,100,317 6,754,090 10,589,000 $ 146,918,097
$
$
$
$
$
$
8,713,066 13,264,103 4,160,112 2,433,464 16,486,447 45,057,192
$
Trust Funds Successor Agency Housing Fund Total Trust Funds
$ $
8,833 8,833
$ $
Total Operating Funds
$ 388,940,195
$
16,045,887 8,295,393 4,013,581 5,041,086 17,927,393 51,323,340
-
$ 425,401,995
$
$
$ $
7,263,356 5,521,965 4,590,046 5,100,000 20,397,138 42,872,505
-
$ 457,948,432
$
$
$ $
Change as % of 2025-26 Budget
2026-27 Budget
56,527,712 7,505,491 32,878,568 5,646,653 10,141,011 $ 112,699,435
$
$
2025-26 Budget
52,000,186 8,185,070 22,229,318 5,808,358 10,187,428 98,410,360
Internal Service Funds Workers' Compensation Risk Management Vehicle Maintenance Vehicle Replacement Information Technology Total Internal Service Funds
$
2025-26 Estimated Expenditures
2024-25 Actuals
7,224,915 5,442,354 4,617,390 7,338,365 19,869,050 44,492,074
-
$ 458,553,237
$
$
$ $ $
64,563,333 12,439,690 33,945,724 7,236,564 11,540,000 129,725,311
-2.0% -56.5% -3.3% 7.1% 9.0% -11.7%
7,782,924 5,498,085 4,839,570 5,111,501 20,699,364 43,931,444
7.7% 1.0% 4.8% -30.3% 4.2% -1.3%
449,531,864
-2.0%
B-33
B-34
PUBLIC SAFETY
The City of Carlsbad’s public safety services create and maintain a safe community for all who live, work and play in our city. This important work is carried out by the dedicated men and women of the Police and Fire departments. Highly specialized divisions cover all aspects of modern law enforcement and fire services including response and recovery, emergency medical, marine safety, community risk reduction and emergency management. We are proud to serve the Carlsbad community, working in partnership to deliver on the city mission at the highest possible level every day. Michael Calderwood Fire Chief
Christie Calderwood Chief of Police
442-339-2141 FireMail@carlsbadca.gov
442-339-2100 police@carlsbadca.gov
C-1
C-2
PUBLIC SAFETY | FIRE DEPARTMENT: SUMMARY
2023-24 Actual Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
19,855,855 5,667,347 2,188,423 1,873,252 29,584,877
2024-25 Actual
$
2,335,844 1,001,554 75,251 4,391,535 315,862 1,776,827 9,896,873
20,950,190 6,540,824 2,412,210 2,123,488 32,026,712
2025-26 Budget
$
2,262,939 1,093,445 77,480 5,761,214 390,617 271,750 9,857,445
22,081,449 7,524,684 2,692,346 2,293,161 34,591,640
2026-27 Budget
$
2,548,354 1,209,726 78,450 5,972,861 366,488 2,600,000 12,775,879
24,527,092 8,544,694 2,918,837 2,420,779 38,411,402
3,072,354 1,307,901 118,450 5,555,201 366,713 405,000 10,825,619
TOTAL EXPENDITURES $
39,481,750
$
41,884,157
$
47,367,519
$
49,237,021
General Fund $ Special Revenue Fund TOTAL FUNDING $
39,481,750 39,481,750
$
41,841,218 42,939 41,884,157
$
47,290,269 77,250 47,367,519
$
49,159,771 77,250 49,237,021
Full Time Positions Hourly/FTE Positions
124.00 10.50
$
124.00 10.50
$
124.00 10.50
$
125.00 10.00
FIRE • • •
Fire Administration Emergency Operations Community Risk Reduction
C-3
PUBLIC SAFETY | FIRE DEPARTMENT: ADMINISTRATION
Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
651,416 $ 181,633 63,468 73,855 970,372
657,733 $ 216,367 59,765 83,716 1,017,581
654,205 $ 227,962 63,602 89,464 1,035,233
720,254 251,591 63,180 94,002 1,129,027
1,837,159 74,002 143 4,541,967 501 6,453,772
1,899,250 73,799 350 4,371,180 1,000 6,345,579
2,429,250 63,799 350 3,946,093 1,000 6,440,492
7,471,353 $
7,380,812 $
7,569,519
1,920,299.00 64,759 205 3,456,144 11,451 26,538.00 5,479,396 6,449,768 $
Full Time Positions Hourly/FTE Positions
5.00 0.50
Account:
0012200 0012210 0012253
5.00 0.50
5.00 0.00
Fund:
General
ABOUT Fire Administration provides leadership, strategic planning and organizational support to ensure effective operations across the entire department.
SERVICES • • • • • • • •
C-4
Administer directives, policies and procedures Compile data and analyze business intelligence Monitor budgets, contracts, procurement, payroll and accounting processes Oversee mutual aid reimbursement Research and support grant programs and opportunities Manage public records requests and document retention Support employee performance and compliance processes and records Establish and maintain administrative tools, resources and guides
5.00 0.00
PUBLIC SAFETY | FIRE DEPARTMENT: EMERGENCY OPERATIONS
Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
17,791,266 $ 5,028,353 1,946,853 1,643,241 26,409,713
18,762,627 $ 5,768,567 2,150,236 1,861,434 28,542,864
19,848,565 $ 6,666,394 2,413,165 2,003,952 30,932,076
22,142,724 7,654,791 2,611,468 2,118,290 34,527,273
206,728 898,038 74,941 492,353 283,119 1,725,495 3,680,674
170,099 982,762 77,198 793,582 369,280 271,750 2,664,671
265,924 1,086,277 77,950 975,867 335,988 2,600,000 5,342,006
259,924 1,169,452 87,950 982,051 336,213 330,000 3,165,590
TOTAL EXPENDITURES $
30,090,387
$
31,207,535
$
36,274,082
$
37,692,863
General Fund $ Special Revenue Fund TOTAL FUNDING $
30,090,387 30,090,387
$
31,164,596 42,939 31,207,535
$
36,196,832 77,250 36,274,082
$
37,615,613 77,250 37,692,863
Full Time Positions Hourly/FTE Positions
$
108.00 9.50
Account:
0012220-29 0012250 0012252 1242118
$
108.00 9.50
Fund:
108.00 9.50
$
108.00 9.50
General Special Revenue-Cal OES Grant
ABOUT The Emergency Operations Bureau safeguards life, property and the environment by providing 24hour fire suppression, rescue, marine safety, disaster mitigation and emergency medical services.
SERVICES • • • • • • • • • •
Extinguish structure and wildland fires Deliver emergency medical and community health services Deploy mutual aid assistance across the state Organize response and support operations for natural or man-made disasters Investigate and mitigate hazardous materials Perform high-risk technical search and rescue Deploy SWAT medics to support law enforcement agencies Provide lifeguard services at North Beach and Agua Hedionda Lagoon Develop and supervise employee health and wellness programs Coordinate fire service career development and advancement opportunities
C-5
RECENT ACCOMPLISHMENTS •
• • • • • •
Converted six single-role EMT positions to dual-role firefighters as part of a multi-year strategy to strengthen fire suppression capacity while maintaining EMS response readiness Initiated purchase of a second front-line aerial ladder truck to expand citywide coverage and support modern firefighting and rescue operations Deployed a temporary front-line ambulance to mitigate regional reductions in EMS transport resources, ensuring uninterrupted emergency response for Carlsbad residents Placed a new Urban Search and Rescue apparatus into service, enhancing specialized technical rescue capabilities locally and throughout the region Designed and implemented reimbursement processes as the lead agency for the California Office of Emergency Services Regional Task Force 13 program Expanded annual firefighter wellness testing to include advanced cancer screenings for suppression personnel over age 40, reinforcing long-term health and safety initiatives Commissioned the department’s first dedicated Self-Contained Breathing Apparatus extractor, improving advanced cleaning and decontamination of personal protective equipment to reduce exposure to harmful contaminants
GOALS • •
• • • • • •
Identify potential sites and research funding options for a permanent Fire Station 7 Monitor and evaluate response times and incident outcomes by incident or hazard type to maintain situational awareness, identify performance trends, improve operational efficiency, optimize resource allocation and strengthen overall community safety Continue implementation of the multi-year staffing plan to convert single-role EMT positions into dual-role firefighters trained in both emergency medical services and fire suppression Construct a new fire ventilation training prop at the Safety Training Center before demolishing existing prop at planned Orion Center site for continuity of training capabilities Enhance specialized technical rescue capabilities to support statewide deployments through California Office of Emergency Services Regional Task Force 13 Replace outdated 800 MHz portable radios with interoperable communication equipment to ensure seamless coordination among partner agencies during emergency operations Purchase video laryngoscopes for all frontline apparatus and implement procedural training to strengthen life-saving critical airway management effectiveness Maintain benchmark performance standards, achieving the 90th percentile fire turnout time and sustaining high EMS patient satisfaction ratings CY 2025 Actual
CY 2026 Estimated
CY 2027 Projected
Fire turnout, 90th percentile time
01:53
01:50
01:50
EMS patient satisfaction rating
99.0%
98.0%
98.0%
Performance Measure
SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET
Benchmark ≤ 2 minutes, at least 90.0% of the time > 95.0%
Related Strategic Plan Goal Quality of Life & Safety Quality of Life & Safety
To address the demands of larger buildings, increased building heights, rising population densities, and evolving emergency response needs, the Fire Department implemented a multi-year staffing plan to transition existing single-role EMT positions into dual-role providers trained in both emergency medical services and fire suppression. Through a phased approach, all operational personnel will be firefightercertified by 2028. Phase 2 includes the reclassification of six additional EMT positions in FY 2026-27.
C-6
PUBLIC SAFETY | FIRE DEPARTMENT: COMMUNITY RISK REDUCTION
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
1,413,173 $ 457,361 178,102 156,156 2,204,792
1,529,830 $ 555,890 202,209 178,338 2,466,267
1,578,679 $ 630,328 215,579 199,745 2,624,331
1,664,114 638,312 244,189 208,487 2,755,102
208,817 38,757 105 443,038 21,292 24,794.00 736,803
255,681 36,681 139 425,665 20,836 0 739,002
383,180 49,650 150 625,814 29,500 1,088,294
383,180 74,650 30,150.00 627,057 29,500 75,000.00 1,219,537
TOTAL EXPENDITURES $
2,941,595 $
3,205,269 $
3,712,625 $
3,974,639
Full Time Positions Hourly/FTE Positions
11.00 0.50
11.00 0.50
11.00 1.00
Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
Account:
0012235 0012240 0012243 0012260
Fund:
12.00 0.50
General
ABOUT The Community Risk Reduction Bureau mitigates hazardous conditions and ensures readiness for effective incident response through prevention, enforcement and public education.
SERVICES • • • • • • • • • • •
Oversee Hazard Reduction Program to identify and abate brush fire hazards Respond to inquiries and complaints concerning hazardous conditions Investigate cause and origin of suspicious or large-loss fires Review code compliance on construction plan submittals Complete construction inspections for new buildings and remodeling projects Conduct annual inspections of schools, care facilities, hotels, motels and apartment complexes Install and test smoke alarms in Carlsbad homes Coordinate outreach and education programs promoting fire safety tips and prevention Disseminate timely and accurate department information through various media platforms Provide leadership to community organizations to help ensure readiness to prevent, protect against, mitigate, respond to and recover from all threats and hazards Direct, conduct and implement city-level emergency plans, programs, trainings and exercises
C-7
• •
Coordinate multi-department citywide emergency operations Support large-scale emergency response operations through the Emergency Operations Center
RECENT ACCOMPLISHMENTS •
• • • • • • • •
Developed a comprehensive long-term fire mitigation plan integrating risk assessment, fuel management, emergency response, community education, infrastructure improvements, implementation, monitoring and public engagement Installed an ALERT California camera in Carlsbad to support early wildfire detection and provide real-time situational awareness Adopted Fire and Wildland-Urban Interface Codes to strengthen regulations that safeguard life and property from hazardous conditions and enhance community wildfire resilience Adopted updated Fire Hazard Severity Zone maps to improve wildfire preparedness and guide targeted mitigation efforts Conducted training sessions to familiarize city employees with new technology, equipment and procedures following the Emergency Operations Center remodel Facilitated a comprehensive emergency operations shelter exercise with partner agencies to reinforce large-scale emergency response coordination Developed an interactive digital story map serving as the Fire Department’s Annual Report, highlighting key achievements, operational data and community impact Completed the transition to FirstDue, a cloud-based platform enhancing fire inspection, prevention, records management efficiency and data accuracy Purchased and outfitted a dedicated Fire Marshal vehicle
GOALS • • • • • •
Create defensible space and fuel modification guidelines for new construction in designated fire hazard severity zones to reduce wildfire risk and protect life and property Update the city’s Landscape Manual to ensure consistency with fire codes and state defensible space requirements Implement fire mitigation plan recommendations to proactively reduce wildfire risk citywide Adopt mid-rise building safety guidelines to ensure adequate fire department access and robust fire protection and detection systems Develop a Zone Zero implementation plan based on anticipated statewide regulations to guide vegetation management and building setbacks Maintain benchmark performance standards, achieving compliance with Senate Bill 1205mandated inspections and completing fire plan reviews within 10 days of submittal
Performance Measure Compliance with Senate Bill 1205-mandated inspections Fire plan reviews conducted within 10 days of submittal
C-8
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
Related Strategic Plan Goal
100%
100%
100%
100%
Quality of Life & Safety
96%
95%
95%
90%
Quality of Life & Safety
PUBLIC SAFETY | POLICE DEPARTMENT: SUMMARY
2023-24 Actual Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
26,413,335 8,325,900 2,653,462 4,093,111 41,485,808
2024-25 Actual
$
1,794,527 1,206,031 306,874 8,649,190 607,596 3,166,059 15,730,277
27,647,736 9,185,155 2,937,937 4,704,124 44,474,952
2025-26 Budget
$
1,850,948 723,188 253,370 10,312,137 619,610 848,107 14,607,360
31,607,753 11,145,980 3,483,483 5,059,489 51,296,705
2026-27 Budget
$
1,802,510 607,875 232,254 10,073,769 713,326 13,429,734
34,540,437 12,185,984 3,846,480 5,514,434 56,087,335
1,910,583 726,725 235,826 9,577,220 686,341 100,000 13,236,695
TOTAL EXPENDITURES $
57,216,085
$
59,082,312
$
64,726,439
$
69,324,030
General Fund $ Special Revenue Fund TOTAL FUNDING $
56,634,858 581,227 57,216,085
$
58,395,466 686,846 59,082,312
$
64,138,292 588,147 64,726,439
$
68,523,708 800,322 69,324,030
Full Time Positions Hourly/FTE Positions
$
187.00 2.18
187.00 2.18
$
193.00 2.18
$
199.00 2.00
POLICE • • • • •
Administration, Police Grants & Asset Forfeiture Field Operations Support Operations Administrative Support Operations Professional Standards & Services
C-9
PUBLIC SAFETY | POLICE DEPARTMENT: ADMINISTRATION, POLICE GRANTS & ASSET FORFEITURE
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
1,247,066 $ 341,424 126,505 172,992 1,887,987
1,287,542 $ 390,742 149,894 198,890 2,027,068
1,277,316 $ 437,147 159,069 222,136 2,095,668
1,547,035 520,645 182,233 251,179 2,501,092
983,178 131,847 270 4,806,249 346,386 30,445 6,298,375
975,030 115,040 297 5,616,510 294,526 165,644 7,167,047
919,796 152,300 300 4,776,179 400,782 6,249,357
1,009,796 267,500 300 5,075,640 328,641 100,000 6,781,877
TOTAL EXPENDITURES $
8,186,362 $
9,194,115 $
8,345,025 $
9,282,969
General Fund $ Special Revenue Fund TOTAL FUNDING $
7,605,135 $ 581,227 8,186,362 $
8,507,269 $ 686,846 9,194,115 $
7,756,878 $ 588,147 8,345,025 $
8,482,647 800,322 9,282,969
Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
Full Time Positions Hourly/FTE Positions
8.00 0.00
Account:
0012110 121-122 123 124
8.00 0.00
Fund:
8.50 0.00
9.00 0.00
General Special Revenue-Asset Forfeiture Special Revenue-COPS Fund Special Revenue-Public Safety Grants
ABOUT This division develops and administers programs that support the city’s and the Police Department’s statement of values in a manner responsive to the city and its residents. This division establishes policies and long-range plans to meet department goals and city needs. Administration is also responsible for police grants, which includes federal and state asset forfeiture, the Citizens’ Option for Public Safety, the Justice Assistance Grant, the Urban Areas Security Initiatives Program and the Office of Traffic Safety.
SERVICES • •
C-10
Develop and manage programs that reduce crime, encourage resident engagement and improve community safety Assist staff with individual and team development
• • •
Provide support to divisions to assist with meeting goals Respond to residents’ concerns, City Council inquiries and public records requests Use grants to purchase police equipment, supplement staffing costs and assist with training
RECENT ACCOMPLISHMENTS • • • •
Used multiple grants to supplement staffing costs, acquire police equipment and coordinate DUI/DL checkpoint and other traffic enforcement operations Awarded the Paul Coverdell Forensic Science Improvement Grant to support accreditation of the Police Department’s crime laboratory Formalized new supervisor mentoring and training program Utilized the existing Drone program to augment patrol and provide a feasibility study for a potential Drone as a First Responder Program in the future
GOALS • • • • • •
Monitor crime rates and crime trends within the city to deploy resources to strategically address issues Utilize grant funding to explore the use of more innovative technology to provide the most efficient and effective services Collaborate cross-departmentally with city staff who specialize in data and innovation to increase accuracy, efficiency and transparency in the department’s data Continue to research innovative technology that will assist in building a real-time crime center Continue to seek grant funding for necessary equipment and collaborate with the Fire Department on grant management Address quality of life issues in the city with a Community Oriented Policing and ProblemSolving model and staffing plan
C-11
PUBLIC SAFETY | POLICE DEPARTMENT: FIELD OPERATIONS
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services Salaries & Wages $
12,016,677
$
13,264,824
$
15,373,119
$
16,612,438
Retirement Benefits
4,004,658
4,512,551
5,745,819
6,256,699
Health Insurance
1,171,226
1,317,773
1,627,050
1,795,007
Other Personnel Expenses
1,728,134
2,105,548
2,433,485
2,593,140
Personnel Services Subtotal
18,920,695
21,200,696
25,179,473
27,257,284
Professional & Contract Services
86,127
105,144
101,000
101,500
Supplies & Materials
248,882
339,293
234,600
219,500
Repair & Maintenance
45,216
22,296
11,500
11,200
Interdepartmental Charges
2,802,264
3,484,429
3,964,794
3,390,316
Other Operating Expenses
129,070
150,439
144,150
145,200
Capital Outlay
2,959,860
218,630
-
Operating Expenses Subtotal
6,271,419
4,320,231
Operating Expenses
TOTAL EXPENDITURES $
25,192,114
$
25,520,927
-
4,456,044 $
29,635,517
3,867,716 $
31,125,000
Full Time Positions
81.00
84.00
92.50
93.00
Hourly/FTE Positions
0.00
0.00
0.00
0.00
Account:
0012120 0012123-2125 0012127-2129
Fund:
General
ABOUT The Field Operations Division includes patrol, canines, SWAT, lagoon patrol and police rangers.
SERVICES • • • • • • •
C-12
Respond to calls for emergency and non-emergency services Employ new and existing resources to address complaints and quality of life issues Provide emergency services, preventative patrol, traffic enforcement and special enforcement in the community Utilize de-escalation tactics during criminal and mental health scenarios to safely resolve critical incidents Staff major public events in the city with Patrol and SWAT team members to respond to immediate, life-threatening emergencies Conduct field interviews and take reports at incidents like crimes, arrests and traffic collisions Enforce laws and ordinances, preserve the peace and provide for the protection of life and property through proactive programs of enforcement and prevention
Police Activity Dispatched Calls
CY 2021 66,568
CY 2022 62,022
CY 2023 64,081
CY 2024 60,916
CY 2025 57,124
Officer Initiated Calls
40,589
41,172
50,708
47,830
50,432
Total Calls for Service
107,157
103,194
114,789
108,746
107,556
Number of Cases
8,704
8,348
8,389
7,900
7,273
911 calls
36,154
34,550
35,926
31,648
30,613
RECENT ACCOMPLISHMENTS • • •
•
•
Received an approval rating of 4.47 out of 5, based on 8,338 people surveyed when asked how they would rate the officer with whom they interacted Onboarded and trained 22 sworn police officers, which equates to 38% of officers in the Patrol Division Worked collaboratively with local organizations and businesses; the Parks and Recreation, Fire, and Transportation departments; and the City Attorney’s Office to create a safe environment with zero incidents of significant crime or property damage for thousands of citizens executing their first amendment rights Re-entered Operation Stonegarden, a federal grant program through the San Diego County Sheriff’s Department, to reduce the influx of illegal drugs, human trafficking and other associated crimes Trained all staff with new requirements stemming from legislative changes such as Proposition 36 and Senate Bill 43
GOALS •
• •
Collaborate with the Information Technology Department to implement the new Motorola Computer Aided Dispatch system and a new Report Management System, both of which will replace current systems which are now at end of life Continue the collaboration with the Crime Analysis Division to refine the Crime Analysis Reponses model with the Crime Analysis Proactivity initiative Continue to progress toward the national average response time of 6:00 minutes for Priority 1 calls for service with added personnel and the integration of new technology
Performance Measures Priority 1 calls for service response time Priority 2 calls for service response time Priority 3 calls for service response time Priority 4 calls for service response time
CY 2023 Actual
CY 2024 Actual
CY 2025 Actual
Benchmark
6:17
6:45
6:13
6:00
14:00
17:45
19:16
N/A
32:56
45:31
41:58
N/A
29:24
38:47
40:04
N/A
Related Strategic Plan Goal Quality of Life & Safety Quality of Life & Safety Quality of Life & Safety Quality of Life & Safety
SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET One lieutenant, one sergeant and four police officers were added mid-year 2025-26, as approved by City Council, to address quality of life issues, address community needs and concerns and focus on community events.
C-13
PUBLIC SAFETY | POLICE DEPARTMENT: SUPPORT OPERATIONS
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services 9,791,282 $
9,409,748
Retirement Benefits
Salaries & Wages $
3,241,436
3,388,030
$
10,899,145 3,948,283
$
11,994,406 4,279,463
Health Insurance
985,970
1,090,238
1,260,442
1,378,312
Other Personnel Expenses
1,503,144
1,601,669
1,614,331
1,811,004
Personnel Services Subtotal
15,521,832
15,489,685
17,722,201
19,463,185
Professional & Contract Services
600,667
623,496
673,214
689,287
Supplies & Materials
75,297
75,995
89,025
100,375
Repair & Maintenance
53,204
63,970
45,495
47,757
Interdepartmental Charges
910,228
1,049,223
1,181,287
968,018
Other Operating Expenses
90,390
101,874
124,189
163,500
Capital Outlay
175,754
91,068
-
Operating Expenses Subtotal
1,905,540
2,005,626
Operating Expenses
TOTAL EXPENDITURES $
17,427,372
$
17,495,311
-
2,113,210 $
19,835,411
1,968,937 $
21,432,122
Full Time Positions
66.00
63.00
61.00
65.00
Hourly/FTE Positions
1.18
1.18
1.18
1.00
Account:
0012115 0012121 0012126 0012130-2138 0012142-2143
Fund:
General
ABOUT The Support Operations Division includes the Crime Suppression Team, Homeless Outreach Team, Investigations Division, Traffic Division, Family Services, Property & Evidence and Fleet Operations.
SERVICES • • • • • • •
C-14
Conduct follow-up investigations leading to the identification and apprehension of persons responsible for the commission of crimes Collect and process evidence collected in the field by police employees Provide support to divisions to assist with meeting goals Assist in the preservation of all life and ensure a safe resolution to critical incidents Investigate and follow up on crime and incident reports as they relate to the family Assist in the coordination of diversion, prevention and education activities Provide and manage the department’s fleet
Crime Clearance Rates
CY 2023
CY 2024
CY 2025
Crimes against persons
57.2%
73.23%
73.00%
Crimes against property
16.4%
17.38%
19.10%
Crimes against society
94.66%
94.51%
96.40%
RECENT ACCOMPLISHMENTS • •
•
• • •
Conducted four in-person e-bike safety education classes at the start of the school year Executed a coordinated summer enforcement strategy between the Traffic Division and Patrol to address residential neighborhood concerns, school-adjacent safety issues, and ebike and e-motorcycle related traffic and quality-of-life complaints during peak activity months Presented at the Office of Traffic Safety Law Enforcement Forum on e-bike safety, highlighting the City of Carlsbad’s data-driven and regulatory innovations implemented under the Safer Streets Together initiative Amended Title 10, Chapter 10.56 of the Carlsbad Municipal Code, including updating e-bike age restrictions, to improve regulatory clarity and public safety outcomes Launched and implemented a pilot Drones as a First Responder Program Collaborated with Code Enforcement to enhance enforcement efforts targeting illegal massage businesses, resulting in the closure of three locations Executed multiple contracts with cellular data extraction vendors and developed a strategic roadmap outlining the needs of the digital forensics laboratory
GOALS •
• • • •
Develop a sustainable staffing and succession planning strategy to ensure continuity, readiness and adequate qualification levels within the Traffic Division amid evolving enforcement demands Evaluate and procure counter-drone capabilities to enhance security for special events, with secondary applicability to critical incidents and other public safety emergencies Begin the process of Crime Lab Accreditation to ensure the laboratory’s work meets the highest standards to be scientifically sound, legally defensible and professionally managed Analyze investigations case load to support a possible reconfiguration of the division Implement a Use of Force review board and make recommendations for training needs or deficiencies
C-15
PUBLIC SAFETY | POLICE DEPARTMENT: ADMINISTRATIVE SUPPORT OPERATIONS
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services 2,569,234 $
2,775,951 $
3,217,355 $
3,331,828
Retirement Benefits
Salaries & Wages $
532,869
624,820
720,485
748,484
Health Insurance
290,291
319,004
375,737
394,874
Other Personnel Expenses
580,127
670,585
680,956
716,921
Personnel Services Subtotal
3,972,521
4,390,360
4,994,533
5,192,107
Professional & Contract Services
11,551
28,481
4,500
6,000
Supplies & Materials
29,241
36,320
28,600
28,500
Operating Expenses
Repair & Maintenance
208,168
166,780
174,939
176,549
Interdepartmental Charges
103,600
130,830
117,728
117,228
Other Operating Expenses
19,174
26,817
17,205
20,000
-
-
-
-
371,734
389,228
342,972
348,277
TOTAL EXPENDITURES $
4,344,255 $
4,779,588 $
5,337,505 $
5,540,384
Full Time Positions
28.00
28.00
27.00
27.00
Hourly/FTE Positions
0.00
0.00
0.00
0.00
Capital Outlay Operating Expenses Subtotal
Account:
0012144-2145
Fund:
General
ABOUT The Administrative Support Operations Division includes Crime Analysis, Communications and Records.
SERVICES • • •
Provide police officers with actionable information by analyzing crime patterns, statistics and trends Deliver public safety communication, including answering 911 and other calls and dispatching appropriate emergency personnel Maintain and provide information and support for all records management, data entry and processing, Public Records Act requests and retrieval of police records in accordance with state-mandated procedures
RECENT ACCOMPLISHMENTS • •
C-16
Earned an approval rating of 4.65 out of 5 based on people surveyed when asked how they would rate dispatch services Created and implemented a comprehensive training program for incoming Records Specialists
•
•
•
Relaunched the Crime Prevention Program, focused on proactive education, community engagement, and partnership building, which empowers residents with tools and information to help prevent crime and strengthen neighborhood safety Introduced the Crime Analysis Proactivity report, providing Watch Commanders with quarterly crime trend projections to help anticipate emerging threats, allocated resources effectively, and proactively address crime Established dedicated crime analysis support within the Investigations Division to assist detectives with intelligence development and complex case analysis
GOALS •
• •
•
Advance the implementation of the new Computer Aided Dispatch system by completing development, conducting comprehensive training and successfully transitioning operations Acquire and implement the new Records Management System to improve data accuracy, accessibility and efficiency Prepare for the statewide migration to Next Generation 911, an emergency communications infrastructure enabling voice and multimedia communications between the 911 caller, the dispatcher and officers in the field Maintain 911 call answer times above the national standards with a focus on consistent delivery
Performance Measures Percentage of 911 calls answered within first 10 seconds Percentage of 911 calls answered within first 15 seconds Percentage of 911 calls answered within first 20 seconds
CY 2024 Actual
CY 2025 Actual
CY 2026 Projected
Benchmark
93.25%
91.89%
93%
N/A
97.01%
96.33%
97%
98.22%
97.71%
98%
90% (national standard) 95% (national standard)
Related Strategic Plan Goal Quality of Life & Safety Quality of Life & Safety Quality of Life & Safety
C-17
PUBLIC SAFETY | POLICE DEPARTMENT: PROFESSIONAL STANDARDS & SERVICES
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services Salaries & Wages $
789,076
$
909,671
$
840,818 $
1,054,730
Retirement Benefits
205,513
269,012
294,246
Health Insurance
79,470
61,028
61,185
380,693 96,054
Other Personnel Expenses
108,714
127,432
108,581
142,190
Personnel Services Subtotal
1,182,773
1,367,143
1,304,830
1,673,667
Operating Expenses Professional & Contract Services
113,004
118,797
104,000
104,000
Supplies & Materials
720,764
156,540
103,350
110,850
Repair & Maintenance
16
27
20
20
Interdepartmental Charges
26,849
31,145
33,781
26,018
Other Operating Expenses
22,576
45,954
27,000
29,000
-
372,765
-
-
883,209
725,228
268,151
269,888
2,065,982 $
2,092,371 $
1,572,981 $
1,943,555
Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $ Full Time Positions
4.00
4.00
4.00
5.00
Hourly/FTE Positions
1.00
1.00
1.00
1.00
Account:
0012119 0012122 0012140
Fund:
General
ABOUT The Professional Standards & Services Division supports the Police Department in the form of training, internal affairs, recruitment and hiring.
SERVICES • • • • • •
C-18
Recruit new employees, organize testing programs and conduct mandated pre-employment investigations and Peace Officer Standards and Training Establish, maintain and enforce department professional standards and coordinate all department training Investigate complaints against Police employees Provide information to the media to inform the public regarding crime activity in the city Develop and administer promotional testing within the Police Department Help improve the quality of life for city residents through crime prevention awareness and education and help reduce the community’s fear of crime through the dissemination of information
RECENT ACCOMPLISHMENTS •
• • • •
Hired 27 personnel in the Police Department including sworn, non-sworn and professional staff to fill vacancies, including the Internet Crimes Against Children Detective and Digital Forensics Specialist Created a uniform proposal sheet for personnel to suggest new equipment and uniform items that improve functionality, safety or professional appearance Revised the Uniform Manual to clarify expectations for department uniforms and ensure consistent standards among uniformed personnel Updated the internal affairs manual and developed a supervisor guidebook as a quick reference to help new supervisors properly complete required actions Updated the audit collection process ensuring audits were not missed or incomplete
GOALS • • •
Maintain adequate levels of staffing in all areas of the department to continue to maintain an exceptional standard of service Contract with an external recruiting firm to obtain high-quality candidates Create a guidebook for the Professional Standards & Services Division Purchase and implement virtual reality training technology and equipment that places officers in realistic, high-pressure scenarios, helping them build confidence and improve decision-making through repeated, hands-on practice in a safe, simulated environment
C-19
C-20
PUBLIC WORKS Public Works is responsible for planning, providing and maintaining the infrastructure that supports a high quality of life in the City of Carlsbad. From city buildings and vehicles to roads, habitat, safe, reliable water supplies and more, Public Works oversees responsible and sustainable management practices for a wide variety of city assets. This includes administration of the Capital Improvement Program, a five-year budget with a 15-year forecast that encompasses planning, design and construction of road and traffic improvements; major facilities maintenance, repairs and renovation; storm drain systems; water and wastewater infrastructure; civic buildings and other infrastructure projects. Public Works plays a key role in promoting environmental sustainability, enhancing options and protecting public health and safety. Paz Gomez Deputy City Manager, Public Works 442-339-2751 paz.gomez@carlsbadca.gov
D-1
D-2
PUBLIC WORKS | ADMINISTRATION
Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
824,821 $ 169,633 75,418 25,662 1,095,534
865,019 $ 197,353 94,152 52,663 1,209,187
821,309 $ 191,327 84,423 40,144 1,137,203
848,696 197,071 82,107 26,035 1,153,909
112,497 11,237 409 324,900 12,736 461,779
61,299 15,898 37,931 173,647 25,507 314,282
67,500 15,130 51,947 197,401 19,041 351,019
67,750 14,880 51,947 183,150 19,041 336,768
1,557,313 $
1,523,469 $
1,488,222 $
1,490,677
Full Time Positions Hourly/FTE Positions
Account:
6.00 1.60
6.00 1.50
0018310
Fund:
5.70 1.50
5.50 1.50
General
ABOUT Public Works Administration provides leadership, administrative oversight and strategic vision for the entire Public Works Branch, which is comprised of the Construction Management & Inspection, Fleet & Facilities, Environmental Sustainability, Transportation and Utilities departments. It provides administrative support services with a focus on alignment to the Strategic Plan, Community Vision and other City Council initiatives.
SERVICES •
Provide leadership support, operating and Capital Improvement Program budget oversight, contract administration, and records management
RECENT ACCOMPLISHMENTS •
• •
Successfully completed the implementation of Phases III and IV of the enterprise asset management system, including the Transportation Department’s pavement management program and the Environmental Sustainability Department’s habitat management division Executed 76 master agreements across 20 disciplines to provide professional services supporting the delivery of departmental and CIP projects Established a formal framework for contractor performance evaluations, standardizing the collection of performance metrics to ensure high-quality service and contract compliance
D-3
• •
•
•
•
•
•
•
Developed a Title VI Implementation Plan to ensure compliance with Caltrans and Federal Highway Administration regulations, securing the city’s eligibility for federal grant funding Earned five project awards from the San Diego and Imperial Counties Chapter of the American Public Works Association for the following departments and projects: the Utilities Department for the South Agua Hedionda Interceptor Reach T1D Capacity Improvements Project; CMWD for the Palomar Airport Water Line Realignment Project; and the Transportation Department for the Buena Vista Creek Channel Emergency Repairs Project, the East-West Corridors Multimodal Resurfacing and Restriping Enhancements Project, and the Carlsbad Boulevard Pedestrian Improvement Project Received a team award from the San Diego and Imperial Counties Chapter of the American Public Works Association for Outstanding Operations & Maintenance Personnel for implementation of the city’s new enterprise asset management system, specifically recognizing the CMWD Administration, Asset Management and Water and Wastewater Division staff Attained one Award of Merit from the San Diego and Imperial Counties Chapter of the American Public Works Association for a Contract Administrator for 20 years of service in bidding transportation and utilities projects Secured four project awards from the San Diego Section of the American Society of Civil Engineers for: 1) Outstanding Bikeways & Trails Project for the Avenida Encinas Coastal Rail Trail Segment 2 Project, 2) Outstanding Geotechnical Project for the Trieste Drive Emergency Slope Repairs Project, 3) Outstanding Water/Wastewater Treatment Project for the Palomar Airport Water Line Realignment Project, and 4) Outstanding Transportation Project for the Carlsbad Boulevard Pedestrian Improvement Project Ranked by the NAFA Fleet Management Association as #10 of the 2025 100 Best Public Fleets and by Government Fleet in association with the American Public Works Association as the #1 Top Small Fleet (for fleets with 499 vehicles or less) Won second place overall and received other individual awards for Streets Maintenance Division staff in the San Diego Chapter of the Maintenance Superintendents Association Roadeo competition in which construction equipment skills are demonstrated Earned an Individual Owner Honoree Award from the San Diego Chapter of the Construction Management Association of America for the Construction Management & Inspection Department Engineering Manager
GOALS • • • • • • •
D-4
Initiate formal American Public Works Association accreditation, conducting an analysis of current operations to align branch practices with national Best Management Practices Scale the pilot contractor performance evaluation program to additional departments Develop a standard operating procedure for construction staging areas to streamline the process to designate an area for temporary contractor use while constructing city projects Implement new CIP budget development software Support an update of the city’s procurement policy and related administrative orders Develop a standard operating procedure for emergency infrastructure repair projects Maintain focus on employee coaching and training for staff throughout the branch
PUBLIC WORKS | CONSTRUCTION MANAGEMENT & INSPECTION
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services 1,479,849 $
1,604,049 $
1,686,335 $
1,813,351
Retirement Benefits
345,984
402,518
437,209
468,251
Health Insurance
169,570
206,603
263,003
315,809
Other Personnel Expenses
49,394
57,047
68,080
75,720
Personnel Services Subtotal
2,044,797
2,270,217
2,454,627
2,673,131
Professional & Contract Services
111,906
82,210
258,048
258,048
Supplies & Materials
9,931
13,707
13,823
13,532
Repair & Maintenance
886
501
314
605
Interdepartmental Charges
683,092
475,805
506,175
414,955
Other Operating Expenses
12,546
11,592
18,000
18,000
-
-
-
-
818,361
583,815
796,360
705,140
TOTAL EXPENDITURES $
2,863,158 $
2,854,032 $
3,250,987 $
3,378,271
Full Time Positions
15.00
15.00
15.00
15.00
Hourly/FTE Positions
0.50
0.50
0.50
0.50
0018510 & 0018560
Fund:
Salaries & Wages $
Operating Expenses
Capital Outlay Operating Expenses Subtotal
Account:
General
ABOUT Construction Management & Inspection ensures compliance with legal, regulatory and contractual requirements during construction of CIP and private development projects.
SERVICES •
• •
•
•
Manage construction of CIP projects and public works contracts for all departments managing city assets such as parks, utilities (water, wastewater, and recycled water), transportation and drainage Inspect and oversee private development grading, which includes monitoring contractor compliance with city standards and approved site design Inspect and oversee stormwater compliance, including monitoring contractor implementation of site-specific plans and methods to prevent storm water pollution during construction for National Pollutant Discharge Elimination System (NPDES) requirements Manage the Green Infrastructure Program, formerly the Treatment Control Best Management Practices Program, including annual notifications to property owners about required maintenance for water quality devices installed in development projects to prevent pollutants such as trash, pesticides and sediment from making their way into waterways Oversee all construction activity in the public right-of-way D-5
RECENT ACCOMPLISHMENTS •
•
•
•
• •
Received 2025 Project of the Year from the San Diego and Imperial Counties Chapter of the American Public Works Association for South Hedionda Interceptor Reach T1D Capacity Improvements and three 2025 Honor Awards for the Buena Vista Creek Emergency Repairs, East-West Corridors Multimodal Resurfacing and Restriping Enhancements, and Palomar Airport Waterline Realignment Earned an Individual Owner Honoree Award from the San Diego Chapter of the Construction Management Association of America for the Construction Management & Inspection Department Engineering Manager Conducted construction management and inspection services on significant CIP projects and citywide emergency responses, including the Recycled Water Phase 3 D-4 Reservoir, Kelly Drive Channel Emergency Repair, Valve Replacement Phase III, Carlsbad Boulevard Beach Access Repairs, Park Drive Street and Drainage Improvements, Stagecoach Park Community Garden, Ponto Water Main Replacement, Miscellaneous Lift Station Improvements, Carlsbad Boulevard Water and Sewer Improvements at Terramar, and El Camino Real Widening from Sunny Creek Road to Jackspar Drive Provided construction inspection services for private development projects such as Marja Acres, Ionis Lots 21 & 22, FPC Residential, Hope Apartments at 955 Grand, Ocean View Point, La Costa Town Square Parcel 3, Romeria Point Apartments, Toyota Carlsbad Showroom and Aviara Apartments West Continued to inspect work in the right-of-way for 5G communications infrastructure Maintained stormwater compliance through training, education, outreach and enforcement actions, resulting in zero construction-related notices of violation from the San Diego Regional Water Quality Control Board to date
GOALS • •
•
Implement a pilot contractor performance evaluation process to improve accountability Work with property owners to reduce pollution and improve water quality through the city’s Green Infrastructure Program with the goal of receiving at least an 80% response rate on the annual Green Infrastructure maintenance verification Continue to maintain stormwater compliance on CIP projects with a goal of no violations from the Regional Water Quality Control Board
Performance Measure Percentage of property owners that respond to the annual Green Infrastructure maintenance verification Construction stormwater violations on CIP projects
D-6
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
Related Strategic Plan Goal
91%
85%
85%
80%
Sustainability & the Natural Environment
0
0
0
0
Sustainability & the Natural Environment
PUBLIC WORKS | ENVIRONMENTAL SUSTAINABILITY: SUMMARY
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
1,601,492 $ 369,975 230,439 279,962 2,481,868
1,678,451 $ 415,612 250,111 180,413 2,524,587
1,875,428 $ 480,220 275,623 64,282 2,695,553
2,027,953 523,558 296,821 70,357 2,918,689
1,210,323 111,848 599 1,202,311 31,605 22,000 2,578,686
1,160,114 67,590 377 1,065,008 27,768 2,320,857
1,567,247 64,410 400 1,050,380 28,520 2,710,957
1,317,247 62,610 450 973,176 30,270 2,383,753
TOTAL EXPENDITURES $
5,060,554 $
4,845,444 $
5,406,510 $
5,302,442
General Fund $ Enterprise Fund TOTAL FUNDING $
1,250,959 $ 3,809,595 5,060,554 $
1,293,622 $ 3,551,822 4,845,444 $
1,704,367 $ 3,702,143 5,406,510 $
1,511,940 3,790,502 5,302,442
17.50 1.50
16.50 1.50
17.00 1.50
Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
Full Time Positions Hourly/FTE Positions
17.00 1.50
ENVIRONMENTAL SUSTAINABILITY • • •
Climate Action Plan and Habitat Management Sustainable Materials Management Watershed Protection
ABOUT The General Fund portion of the Environmental Sustainability Department budget includes the Climate Action Plan, Habitat Management and Watershed Protection Divisions, the latter of which is also responsible for the coordination of the municipal component of the National Pollutant Discharge Elimination System Municipal Stormwater Permit. The department also coordinates and provides administrative and technical support to the newly established Environmental Sustainability Commission. These divisions integrate components of the department’s environmental and sustainability guiding principles and support the 5-year Carlsbad Strategic Plan Goal of Sustainability & the Natural Environment.
D-7
PUBLIC WORKS | ENVIRONMENTAL SUSTAINABILITY: CLIMATE ACTION PLAN AND HABITAT MANAGEMENT 2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services Salaries & Wages $
304,095
$
383,772
$
501,633
$
539,438
Retirement Benefits
74,917
93,159
127,424
138,017
Health Insurance
38,630
43,312
54,661
56,778
Other Personnel Expenses
10,629
10,948
16,021
17,334
Personnel Services Subtotal
428,271
531,191
699,739
751,567
Professional & Contract Services
424,622
371,489
603,112
353,112
Supplies & Materials
6,301
1,592
10,620
10,620
Repair & Maintenance
38
43
50
50
Interdepartmental Charges
148,637
125,647
120,509
103,460
Other Operating Expenses
1,651
3,737
8,100
8,100
-
-
-
-
581,249
502,508
742,391
475,342
1,009,520 $
1,033,699 $
1,442,130 $
1,226,909
Operating Expenses
Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $ Full Time Positions
2.70
2.90
3.40
3.40
Hourly/FTE Positions
0.50
0.50
0.50
0.50
Account:
SERVICES • • • • • • • • • •
D-8
0015110 0015130
Fund:
General
Coordinate with multiple city departments to oversee Climate Action Plan implementation, collect monitoring data and prepare an annual report for the public and the City Council Update the public-facing CAP dashboard that provides information and data regarding energy, transportation carbon sequestration and waste diversion to coincide with the CAP annual report Prepare an update of the CAP every five years as directed by the City Council Coordinate the preparation of a community-wide greenhouse gas emissions inventory with future projections as appropriate Fulfill city regulatory requirements related to the CAP Perform outreach and education related to CAP activities and respond to public inquiries Manage the Carlsbad Green Business Program, which supports and recognizes local businesses for adopting environmentally sustainable practices Engage in groups like the San Diego Regional Climate Collaborative to collaborate, share expertise and advance sustainability efforts Research and monitor upcoming regulations, funding opportunities and activities related to climate mitigation, adaptation, resilience and equity Provide leadership and citywide coordination to ensure compliance with Habitat Management Plan regulations for private development and city CIP projects
• •
• • • •
Oversee preserve management to ensure Habitat Management Plan compliant land management, biological monitoring and reporting across the citywide preserve system Collaborate with the U.S. Fish and Wildlife Service, California Department of Fish and Wildlife, California Coastal Commission and other resource agencies to ensure solutionsoriented Habitat Management Plan implementation Represent the city in regional conservation organizations, including San Diego Management and Monitoring Program and SANDAG Regional Habitat Conservation Taskforce Facilitate regional and local conservation-related scientific research, biological monitoring and rare species habitat enhancement Coordinate preserve inspection program, Ward’s weed control program, and adaptive management program Provide technical support to the Environmental Sustainability Commission
RECENT ACCOMPLISHMENTS •
• • • • • •
Established the city’s first ever Environmental Sustainability Commission by transitioning the former Beach Preservation Commission to an expanded role beyond beach nourishment and shoreline preservation, including natural resources and open space, climate adaptation and other environmental sustainability topics Implemented brush management in nine unmanaged preserves to reduce the risk of fire hazards in habitat adjacent to residences Converted all municipal accounts to the 100% renewable energy rate with Clean Energy Alliance, completing implementation of a CAP action Served as Treasurer for the California Green Business Network Board of Directors Partnered on a successful grant application with several other local agencies for a greenhouse gas inventory update, prepared at no cost via SANDAG’s Smart Growth Incentive Program funding Continued the pilot adaptive management program to enhance and protect two endangered plant species and rare native grassland habitat Completed all municipal inspections as required by the Municipal Stormwater Permit
GOALS • • •
•
Continue implementation of the CAP with a focus on the 2030 monitoring benchmarks Protect the city’s native habitat and species diversity through implementation of the Habitat Management Program Ensure compliance with state and federal endangered species acts by meeting all regulatory requirements of the Habitat Management Program including target preserve acres and report out to the resource agencies and the public annually Continue the inspection program to assess the habitat preserves’ conditions and advance the adaptive management program to address environmental changes
Performance Measure New Carlsbad Green Business Program certifications Acreage goal added to Habitat Management Plan area
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
15
12
10
N/A
96%
96%
96%
N/A
Related Strategic Plan Goal Sustainability & the Natural Environment Sustainability & the Natural Environment
D-9
PUBLIC WORKS | ENVIRONMENTAL SUSTAINABILITY: SUSTAINABLE MATERIALS MANAGEMENT
2023-24 Actual Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
693,998 160,741 82,926 24,857 962,522
2024-25 Actual
$
664,439 164,396 85,066 20,901 934,802
471,919 100,058 285 497,769 20,774 22,000 1,112,805
427,251 63,302 242 501,249 18,138 1,010,182
TOTAL EXPENDITURES $
2,075,327 $
General Fund $ Enterprise Fund TOTAL FUNDING $
2025-26 Budget
$
709,278 182,624 90,938 25,249 1,008,089
2026-27 Budget
$
791,295 205,758 104,880 28,324 1,130,257
400,120 43,950 250 497,300 12,800 954,420
400,120 42,900 300 441,435 13,800 898,555
1,944,984 $
1,962,509 $
2,028,812
241,439 $ 1,833,888 2,075,327 $
259,923 $ 1,685,061 1,944,984 $
262,237 $ 1,700,272 1,962,509 $
285,031 1,743,781 2,028,812
8.65 0.50
7.30 0.50
7.35 0.50
0015120 520XXXX
Fund:
Full Time Positions Hourly/FTE Positions
Account:
7.35 0.50
General Enterprise
ABOUT In alignment with the Carlsbad Municipal Code and General Plan, the Sustainable Materials Management Division coordinates implementation of a comprehensive citywide waste reduction and recycling program, ensuring full compliance with state regulations governing waste reduction, diversion and the proper disposal of solid waste. Division staff manage the franchise agreement for waste hauling, recycling services and organics services, oversee the Palomar Transfer Station agreement for disposal services, lead waste reduction and diversion outreach and education initiatives and ensure the safe disposal of household hazardous waste. Through these efforts, the division actively contributes to a more sustainable and environmentally responsible community.
SERVICES • •
D-10
Represent the city at meetings related to sustainable materials management with CalRecycle, businesses, residents and other stakeholders Oversee the municipal waste reduction, diversion and other sustainability programs
• • • • • •
Manage grant applications and activities, including local, state and national grant programs, with the City Council’s approval Coordinate outreach and education targeted at increasing recycling and other diversion programs for residents, businesses, municipal employees and the public Plan and organize annual Earth Month and Earth Day events promoting recycling, proper disposal of household hazardous waste, composting and beach cleanup Conduct annual rate analysis to evaluate cost-effective practices for the franchise agreement for trash and recycling services Submit annual source reduction, recycling, composting and disposal reports to CalRecycle Engage the community to decrease waste and increase recycling and composting practices
RECENT ACCOMPLISHMENTS • • • • • • • •
Provided outreach and education to all multifamily properties and businesses in the city on new single-use plastics ordinances and organics requirements Hosted Fix-It clinic events, compost and mulch giveaways, shredding and recycling events, an e-waste collection event, and Earth Month celebrations to promote sustainable practices Continued to work in all school districts assisting with education programs, staff training and support for meal sorting and recycling initiatives Expanded edible food recovery efforts by supporting food recovery organizations and local businesses, advancing food waste reduction and community food access Implemented outreach, training, and contamination reduction strategies for large-scale community events, including TGIF Concerts in the Park and the Carlsbad Village Street Faire Demonstrated contamination monitoring and reduction strategies to CalRecycle during route reviews, which resulted in the city being highlighted as a model program Received the Pavitra Crimmel Reuse Award from the California Resource Recovery Association for the city’s innovative Fix-It Clinics Program Revised city departments’ Municipal Sustainability Action Plans to improve recycling practices, increase awareness and enhance tracking of waste diversion efforts
GOALS • • • •
Monitor waste diversion and recycling programs at the Palomar Transfer Station to ensure performance, compliance and alignment with the city’s diversion goals Increase waste diversion in the commercial sector by focusing on technical assistance Continue tracking per capita disposal rate to verify accuracy and monitor improvement Advance sustainable materials management practices across city departments by supporting implementation of departmental Action Plans, standardizing waste systems and expanding technical assistance to municipal staff and sustainability ambassadors FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
Pounds per person sent to landfill
7.0 lbs.
7.0 lbs.
7.2 lbs.
N/A
Organics diverted from the landfill (tons)
35,739 tons
36,955 tons
38,005 tons
N/A
Performance Measure
Related Strategic Plan Goal Sustainability & the Natural Environment Sustainability & the Natural Environment
D-11
PUBLIC WORKS | ENVIRONMENTAL SUSTAINABILITY: WATERSHED PROTECTION
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services Salaries & Wages $
603,399
$
630,240
$
664,517
$
697,220
Retirement Benefits
134,317
158,057
170,172
179,783
Health Insurance
108,883
121,733
130,024
135,163
Other Personnel Expenses
244,476
148,564
23,012
24,699
Personnel Services Subtotal
1,091,075
1,058,594
987,725
1,036,865
Professional & Contract Services
313,782
361,374
564,015
564,015
Supplies & Materials
5,489
2,696
9,840
9,090
Repair & Maintenance
276
92
100
100
Interdepartmental Charges
555,905
438,112
432,571
428,281
Other Operating Expenses
9,180
5,893
7,620
8,370
-
-
-
884,632
808,167
1,975,707 $
1,866,761 $
Operating Expenses
Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $
-
1,014,146
1,009,856
2,001,871 $
2,046,721
Full Time Positions
6.15
6.30
6.25
6.25
Hourly/FTE Positions
0.50
0.50
0.50
0.50
5215110
Fund:
Account:
Enterprise
ABOUT This budget supports leadership and stewardship of the city’s resources, including our creeks, lagoons and ocean, through the Watershed Protection Division’s coordination of the citywide protection program. The division also helps the city maintain compliance with the National Pollutant Discharge Elimination System Municipal Stormwater Permit issued by the San Diego Regional Water Quality Control Board—a regional permit that covers 39 copermittees from municipal, county government and special district entities who own and operate large storm drain systems that discharge water runoff to surface waters throughout the region. The Municipal Stormwater Permit covers 11 watershed management areas in the region, including the Carlsbad Watershed area.
SERVICES •
• •
D-12
Act as the Principal Copermittee in the Carlsbad Watershed management area, serving as a liaison with the Regional Board, ensuring submittal of annual reports and participating in the planning committee Represent the city at meetings with the California Environmental Protection Agency, Regional Board, copermittees, environmental nonprofit groups and other stakeholders Assess businesses to ensure proper pollution prevention, prevent discharges into the storm drain system, and protect receiving waters, which may require follow-up visits, targeted education or enforcement
•
• •
Identify and eliminate illicit water discharges into the storm drain system as required by the Municipal Stormwater Permit, including responding to and investigating complaints, performing field screening at major outfalls and managing a public hotline Oversee the city’s implementation of statewide Trash Amendments, to comply with the State Water Resources Control Board’s Trash Provisions and reduce pollution in state waters Act as a staff liaison and provide administrative and technical support to the Buena Vista Lagoon Joint Powers Committee, in partnership with the City of Oceanside
RECENT ACCOMPLISHMENTS • • • • •
Updated and implemented the Water Quality Improvement Plan for the Carlsbad Watershed management area, which will optimize its compliance with the Municipal Stormwater Permit Submitted the Carlsbad Watershed Water Quality Improvement Plan and the Jurisdictional Runoff Management Program Annual Reports to the Regional Board Worked interdepartmentally to implement state mandated trash control measures to keep trash out of the storm drain system and downstream waterbodies Hosted volunteer cleanup sites and provided other outreach and education activities within the city and regionally Completed all state-mandated water quality monitoring and annual stormwater inspections
GOALS • • • •
• • • •
Implement a monitoring program to evaluate storm drain system discharges, including water quality monitoring, sediment quality monitoring and other studies Create a public outreach program to promote behavior changes that reduce the discharge of pollutants into the storm drain system and protect water quality in the receiving waters Implement all required strategies and numeric goals of the Water Quality Improvement Plan Utilize innovative approaches to execute the city’s Jurisdictional Runoff Management Program alongside the Carlsbad Watershed Water Quality Improvement Plan and submit reports to the Regional Board Prepare for implementation of the revised Municipal Stormwater Permit which will include new requirements to control trash Conduct all annual inspections of existing development and water quality monitoring required by the Municipal Stormwater Permit Implement new statewide cost reporting standards for municipal storm water programs Respond to at least 90% of illicit discharge emergencies within 45 minutes and detect and eliminate 100% of illicit discharges
Performance Measure Percentage of emergency response times under 45 minutes for illicit discharges Illicit discharges detected and eliminated
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
Related Strategic Plan Goal
100%
90%
90%
90%
Sustainability & the Natural Environment
100%
100%
100%
100%
Sustainability & the Natural Environment
D-13
PUBLIC WORKS | FLEET & FACILITIES: SUMMARY
Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
D-14
2024-25 Actual
2025-26 Budget
2026-27 Budget
3,184,239 $ 655,964 583,292 285,948 4,709,443
3,254,589 $ 750,564 613,998 222,404 4,841,555
3,606,485 $ 847,927 686,602 150,195 5,291,209
3,877,404 910,802 706,828 167,232 5,662,266
1,303,867 2,325,377 1,293,213 1,450,591 653,085 2,446,181 9,472,314
1,095,433 2,294,756 1,350,337 945,608 908,057 4,834,154 11,428,345
987,921 2,497,571 1,535,042 1,258,914 687,456 7,343,365 14,310,269
1,042,692 2,546,430 1,617,918 1,254,364 674,036 5,111,501 12,246,941
TOTAL EXPENDITURES $
14,181,757
General Fund $ Internal Service Fund Special Revenue Fund TOTAL FUNDING $
7,532,550 $ 6,593,576 55,631 14,181,757 $
Full Time Positions Hourly/FTE Positions
35.95 8.40
FLEET & FACILITIES • •
2023-24 Actual
Facilities Fleet Maintenance & Replacement
$
16,269,900
$
19,601,478
$
17,909,207
7,158,113 $ 9,054,667 57,120 16,269,900 $
7,584,723 $ 11,955,755 61,000 19,601,478 $
7,894,636 9,951,071 63,500 17,909,207
35.95 8.40
37.20 8.40
37.20 8.80
PUBLIC WORKS | FLEET & FACILITIES: FACILITIES
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services 2,233,604 $
2,297,579 $
2,508,077 $
2,682,156
Retirement Benefits
Salaries & Wages $
458,217
521,890
574,521
614,309
Health Insurance
386,212
397,598
428,477
444,820
Other Personnel Expenses
83,832
80,976
104,326
115,804
Personnel Services Subtotal
3,161,865
3,298,043
3,615,401
3,857,089
Professional & Contract Services
1,266,250
1,051,287
939,537
994,308
Supplies & Materials
577,071
534,579
599,920
580,359
Repair & Maintenance
898,671
1,029,910
1,071,467
1,122,843
Interdepartmental Charges
1,037,153
629,948
752,486
760,125
Other Operating Expenses
611,989
671,466
661,912
643,412
Capital Outlay
35,182
-
5,000
Operating Expenses Subtotal
4,426,316
3,917,190
4,030,322
4,101,047
TOTAL EXPENDITURES $
7,588,181 $
7,215,233 $
7,645,723 $
7,958,136
General Fund $
7,532,550 $
7,158,113 $
7,584,723 $
7,894,636
55,631
57,120
61,000
63,500
7,588,181 $
7,215,233 $
7,645,723 $
7,958,136
Full Time Positions
25.85
25.85
26.00
26.00
Hourly/FTE Positions
7.40
7.40
7.40
7.80
Operating Expenses
Special Revenue Fund Total Funding $
Account:
0015310 0015320 3155110
Fund:
-
General Special Revenue-Parking in Lieu
ABOUT The Facilities Division provides safe and comfortable working spaces at city facilities and maintains quality indoor public spaces. Additionally, this division oversees the design and construction work for new city facilities and building renovation projects and operates the Safety Training Center.
SERVICES • • •
Maintain city-owned facilities including building exteriors, interiors, cleaning and custodial services, as well as set-up of offices and meeting rooms Provide construction, improvements, renovations, repairs and relocation services for cityowned buildings Operate the Safety Training Center for public safety personnel training as well as provide leasing and rental opportunities to federal, state and local agencies and programs
D-15
RECENT ACCOMPLISHMENTS • •
• • • • • • • • •
Received certification as a Green Business through the California Green Business Network for Stagecoach Community Center and the Carlsbad Library Learning Center Completed a facility monitoring pilot program that provides real time building asset conditions including temperature, humidity, water intrusion, emergency generator status and other critical elements of city facilities Continued to develop the facility asset management program and completed populating approximately 40% of the documented assets into OpenGov Completed 1,556 facilities service requests submitted via the city’s work order management system and an additional 261 preventative maintenance tasks Completed replacing the roof system of the Alga Norte Community Park ballfield snack bar using a roofing tile that is manufactured with post-industrial recycled products Completed the Fleet Fuel Island Upgrade project and the Police & Fire Headquarters Central Plant Repair Project Completed construction of the Harding Community Center Refurbishment Project heating, ventilation and air conditioning system refurbishment at the auditorium Completed installation of an uninterrupted power supply system at the Emergency Operations Center Completed the Safety Training Center Irrigation System Project and added water meters to three fire hydrants, expanding training opportunities for the Fire Department Supported 37 training days for 17 outside agency leases at the Safety Training Center generating $31,000 in revenue through February 2026 Recycled 1,731 pounds of brass shell casings, 4,586 pounds of lead and copper from indoor shooting range activities and 4,940 pounds of scrap metal, generating over $4,100 in revenue as well as promoting environmental sustainability
GOALS • • • • • • • •
Complete implementation of the facility asset monitoring program to allow for real-time monitoring of building systems at select city facilities Explore opportunities for projects to promote sustainable energy use and production Continue to develop the facility asset management program by populating 100% of our documented assets into OpenGov Complete construction of the State Street Parking Lot Electric Vehicle Charging project Commence construction of the Fleet Maintenance Refurbishment project Complete the design work for the Orion Center project and obtain building permit ready plans, specifications and contract documents Complete construction of the Monroe Street Pool Replacement Project Conduct a study to determine opportunities for future solar projects at six city facilities
Performance Measure Total number of cityowned EV charging parking stalls Building maintenance ($/square foot)
D-16
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
60
64
91
Annual increases
$4.40
$4.67
$4.81
N/A
Benchmark
Related Strategic Plan Goal Sustainability & the Natural Environment Organizational Excellence & Fiscal Health
PUBLIC WORKS | FLEET & FACILITIES: FLEET MAINTENANCE & REPLACEMENT
2023-24 Actual
2024-25 Actual
2025-26 Budget
957,010 $
2026-27 Budget
Personnel Services 1,098,408 $
1,195,248
Retirement Benefits
197,747
228,674
273,406
296,493
Health Insurance
197,080
216,400
258,125
262,008
Other Personnel Expenses
202,116
141,428
45,869
51,428
Personnel Services Subtotal
1,547,578
1,543,512
1,675,808
1,805,177
Salaries & Wages $
950,635
$
Operating Expenses Professional & Contract Services
37,617
44,146
48,384
48,384
Supplies & Materials
1,748,306
1,760,177
1,897,651
1,966,071
Repair & Maintenance
394,542
320,427
463,575
495,075
Interdepartmental Charges
413,438
315,660
506,428
494,239
Other Operating Expenses
41,096
236,591
25,544
30,624
Capital Outlay
2,410,999
4,834,154
7,338,365
5,111,501
Operating Expenses Subtotal
5,045,998
7,511,155
10,279,947
8,145,894
TOTAL EXPENDITURES $
6,593,576 $
9,054,667
11,955,755 $
9,951,071
Full Time Positions
10.10
10.10
11.20
11.20
Hourly/FTE Positions
1.00
1.00
1.00
1.00
6205460 6215461
Fund:
Account:
$
Vehicle Maintenance Fund Vehicle Replacement Fund
ABOUT The city’s fleet consists of 507 vehicles and equipment necessary to achieve the city’s mission of delivering quality and efficient services safely, affordably and in compliance with all regulations. The fleet maintenance program funds labor, parts, services, fuel and oil necessary to maintain the city’s fleet of vehicles and equipment. The fleet maintenance program is funded through charges to departments based on vehicle type and utilization. The fleet vehicle replacement program is funded through a replacement charge to departments for each vehicle or equipment in service. This program funds asset replacement and vehicle outfitting. Cost-effective vehicle procurement is achieved through cooperative purchasing agreements and bidding processes. Revenue is collected from the sale of retired city fleet assets at auction and used to offset future costs within respective departments.
SERVICES •
Provide safe, appropriately managed and maintained vehicles for use by city staff, inspect vehicles per requirements of the biennial inspection of terminals and smog programs and maintain 24/7 road call services for emergency vehicles
D-17
• • •
•
Provide reliable, cost-effective fuel management by maintaining sufficient fuel supplies for emergencies and monitoring fuel tanks in accordance with state and county regulations Evaluate the city fleet annually to identify units eligible for replacement or reduction in accordance with Administrative Order 3 Advise on development of specifications for the purchase of replacement units that satisfy client department requirements while optimizing life cycle return on investment in alignment with the Climate Action Plan Purchase replacement units and identify opportunities to increase fleet electrification and electric vehicle charging infrastructure
RECENT ACCOMPLISHMENTS • • • •
Achieved recognition as the #10 NAFA 100 Best Fleets, and #1 Leading Fleet in Government Fleet Magazine and the American Public Works Association in 2025 Increased inventory of low-emission vehicles from 106 vehicles last year to 126 vehicles Activated 46 new vehicles and equipment and received $303,348 in revenue from auction sales Installed 10 additional Level 3 EV Charging stations at Fleet Operations Center, completing the 2nd phase of a three-phase project with SDGE Power Your Drive Program
GOALS •
• •
Transition all passenger fleet vehicle purchases to electric vehicles, except for public safety vehicle purchases—which will be electric where feasible—in compliance with the updated Climate Action Plan and the Strategic Plan Assess and improve fleet data management techniques and analytical processes for enhanced city reporting capabilities Increase low- and zero-emission vehicle miles traveled, or VMT, to 40% of total annual fleet VMT or 1,000,000 miles FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
61
75
88
Fleet vehicles ready for active service
98.6%
98.4%
98.0%
98%
City-related vehicle miles traveled by low/zero emission vehicles
26%
25%
30%
25% by 2035
Performance Measure Number of non-public safety fleet vehicles that are electric or hybrid
D-18
Benchmark Consistent annual increases
Related Strategic Plan Goal Sustainability & the Natural Environment Organizational Excellence & Fiscal Health Sustainability & the Natural Environment
PUBLIC WORKS | TRANSPORTATION: SUMMARY
Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
4,062,496 $ 944,700 648,302 137,740 5,793,238
4,185,046 $ 1,077,122 692,050 194,800 6,149,018
4,682,779 $ 1,221,174 802,300 265,545 6,971,798
4,966,142 1,297,072 814,714 302,973 7,380,901
1,551,740 415,525 1,288,696 2,943,607 734,193 282,686 7,216,447
1,362,613 434,665 1,349,545 3,788,876 894,287 98,840 7,928,826
1,841,219 550,689 2,122,211 4,527,111 920,521 100,000 10,061,751
2,057,019 531,689 2,263,611 4,497,622 940,911 100,000 10,390,852
TOTAL EXPENDITURES $
13,009,685
$
14,077,844
$
17,033,549
$
17,771,753
General Fund $ Enterprise Fund Special Revenue Fund TOTAL FUNDING $
9,463,214 1,998,763 1,547,708 13,009,685
$
10,311,161 2,094,831 1,671,852 14,077,844
$
12,173,662 3,051,947 1,807,940 17,033,549
$
12,478,307 3,446,062 1,847,384 17,771,753
Full Time Positions Hourly/FTE Positions
43.80 1.50
$
$
43.80 1.50
43.80 1.00
$
43.80 1.00
TRANSPORTATION • • •
Storm Drain Maintenance & Engineering Traffic, Mobility, Transportation Engineering & Streets Maintenance Buena Vista Channel, Lighting & Landscaping Districts
D-19
PUBLIC WORKS | TRANSPORTATION: STORM DRAIN MAINTENANCE & ENGINEERING 2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services Salaries & Wages Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal
$623,142 147,640 103,650 22,413 896,845
$683,963 161,828 120,692 30,578 997,061
$771,270 195,476 136,605 44,525 1,147,876
$1,100,226 283,437 166,929 61,570 1,612,162
Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
444,657 23,053 568,372 446,194 68,520 1,550,796
355,755 21,161 645,236 533,683 57,722 1,613,557
571,107 32,950 1,250,200 556,771 98,700 2,509,728
812,407 32,250 1,376,400 704,833 81,900 3,007,790
TOTAL EXPENDITURES
$2,447,641
$2,610,618
$3,657,604
$4,619,952
448,878 $ 1,998,763 2,447,641 $
515,787 $ 2,094,831 2,610,618 $
605,657 $ 3,051,947 3,657,604 $
1,173,890 3,446,062 4,619,952
7.35 0.50
6.60 0.50
General Fund $ Enterprise Fund TOTAL FUNDING $ Full Time Positions Hourly/FTE Positions
Account:
0016310 5216310
Fund:
7.50 0.50
8.35 0.50
General Enterprise-Storm Drain Maintenance
ABOUT The Transportation Storm Drain Maintenance & Engineering divisions are responsible for maintaining and improving the city’s storm drain infrastructure.
SERVICES • • • •
Address various drainage infrastructure and stormwater maintenance issues citywide Develop plans, specifications and estimates and provide project or design management of projects involving storm drain assets Optimize maintenance efforts by monitoring and addressing new and ongoing drainage issues Perform inspections and maintenance of the storm drain system
RECENT ACCOMPLISHMENTS • •
D-20
Obtained emergency permits from regulatory agencies and initiated construction phase for emergency repair of the channel adjacent to Kelly Drive Cleaned out portions of the Kelly Channel and the Gabbiano outfall and cleared a large box culvert under La Costa Avenue
• •
• •
Completed construction of the Kelly Channel embankment emergency repair project Responded to and quickly repaired a storm-related local emergency of an 18” storm drainpipe that resulted in sinkholes along the coastal bluffs on Carlsbad Boulevard near Solamar Drive on state-owned property in early 2026 Carried out annual testing of street-sweeping debris to ensure compliance with regulatory requirements Continued design on the Magnolia Avenue Drainage Improvements Project, 2025 Surface Drainage Improvements Project, Merwin Drive Storm Drain Improvements Project and Drainage Master Plan BFB-Upper Project
GOALS • •
• • •
•
• • •
Complete the Drainage Master Plan Update Complete design of the Magnolia Avenue Drainage Improvement Project, 2025 Surface Drainage Improvements Project, Merwin Drive Storm Drain Improvements Project and Drainage Master Plan BFB-Upper Project Complete all annual inspections and clearing of programmed storm drains and channels Collaborate with state agencies to address state-owned property within the lagoons to improve drainage Complete the engineering and environmental phase and initiate the construction phase for multiple storm drain repair projects, including Highland-Hoover, corrugated metal pipe replacements and Carlsbad Boulevard and Juniper Avenue storm drain repair Obtain a new streambed alteration agreement from the California Department of Fish and Wildlife and complete triannual vegetation cutting and trash/debris removal at the Agua Hedionda Creek between the bridges of Cannon Road and El Camino Real Complete channel maintenance and prepare the annual report detailing vegetation cutting and debris removal for the Buena Vista Creek Channel Maintenance District project Finalize the Drainage Master Plan update Complete all annual inspections and manage high-priority cleanings
Performance Measure Curb miles of streets swept to mitigate debris per month Tons of debris removed from city streets from street sweeping Percentage of Agua Hedionda Lagoon channels cleaned
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
Related Strategic Plan Goal Quality of Life & Safety
1,800 (100%)
1,800 (100%)
1,824 (100%)
1,824 (100%)
1,154 tons
900 tons
1,000 tons
N/A
Quality of Life & Safety
100%
100%
100%
100%
Sustainability & the Natural Environment
SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET A significant change includes an increase of $225,000 for quarterly channel maintenance. This will help cover expenses associated with maintaining channels on a quarterly basis, including vegetation removal and clearance efforts to reduce flooding risks.
D-21
PUBLIC WORKS | TRANSPORTATION: TRAFFIC, MOBILITY, TRANSPORTATION ENGINEERING & STREETS MAINTENANCE
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
3,262,366 $ 757,370 525,527 109,328 4,654,591
3,316,970 $ 868,484 549,147 155,646 4,890,247
3,725,379 $ 975,948 644,312 209,719 5,555,358
3,667,101 960,202 625,536 228,396 5,481,235
962,201 365,706 489,499 2,079,907 198,636 263,796 4,359,745
899,609 391,612 468,842 2,757,749 288,475 98,840 4,905,127
1,138,554 455,107 649,300 3,415,283 254,403 100,000 6,012,647
1,113,054 436,807 663,300 3,222,818 287,203 100,000 5,823,182
TOTAL EXPENDITURES $
9,014,336 $
9,795,374
Full Time Positions Hourly/FTE Positions
34.50 1.00
Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
Account:
35.25 1.00
0018410 00186XX 00187XX
$
11,568,005
$
11,304,417
34.35 0.50
Fund:
33.50 0.50
General
ABOUT The Traffic, Mobility, Transportation Engineering & Streets Maintenance divisions maintain and improve road infrastructure. They are responsible for enhancing mobility and safety citywide through ongoing transportation planning, streets and traffic engineering, streets maintenance and signal operations activities.
SERVICES • • •
Plan traffic needs, review development projects and manage traffic signals and engineering Address public concerns, study traffic issues and make safety improvements Maintain streets, including signs, markings, graffiti removal, trash pickup and repairs to potholes and sidewalks
RECENT ACCOMPLISHMENTS •
D-22
Completed a parking analysis and initiated design to increase on-street parking along Chestnut Avenue at Madison Street
•
• • • • • •
• •
Developed a preliminary layout for converting parallel parking to diagonal parking with lane reduction on westbound Grand Avenue between the Tyler Street alley and Jefferson Street that would result in up to 14 additional parking spaces with establishment of an all-way stop at Grand Avenue and Madison Street Added a total of 44 parking spaces in the Village and Barrio as part of an effort to convert red curb that is no longer needed Completed all-way stop analyses for 28 locations to address residents’ requests Implemented all-way stops at two intersections: Laguna Drive and State Street, and Grand Avenue and Madison Street Finalized the Carlsbad Traffic Management Program 2026 update and initiated the second phase of the program on key streets Replaced 423 streetlights and fixed 450 street sign knockdowns Replaced 36,060 square feet of asphalt in the city right-of-way and approximately 5,600 square feet of concrete sidewalks Responded to 211 potholes year-to-date, as of February 2026 Completed over 3,414 utility mark-outs, 1,317 striping work orders and addressed 6,408 graffiti locations Initiated revised design work on numerous high-priority projects including the Carlsbad Boulevard and Tamarack Avenue Intersection Improvements Project, Terramar Area Coastal Improvements Project and Kelly and Park Drives Complete Streets Project
GOALS • • •
Develop the scope for School Traffic Safety Improvements and identify additional schools for a Safe Routes to School Plan for fiscal year 2026-27 Continue progress on the Clean Mobility Charging Master Plan to identify new potential electric vehicle charging sites citywide Complete design of the Carlsbad Boulevard and Tamarack Avenue Intersection Improvements Project, Terramar Area Coastal Improvements Project, Kelly and Park Drives Complete Streets Project, Village Lighting Project Phase I, 2025 Resurfacing Project, ADA Beach Access Pine Avenue to Tamarack Avenue Project, El Camino Real Widening from Arenal Road to La Costa Avenue Project, Valley Street and Magnolia Avenue Complete Streets Project, Bridge Preventative Maintenance Projects, Parking Lot Maintenance Projects and State Street Trash Capture Best Management Practices (TCBMP) Project FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Percentage of residential traffic-related requests completed
70% (155/221)
90% (180/200)
90%
Percentage of residential traffic calming projects completed
100% (8/8)
100% (3/3)
100% (2/2)
Performance Measure
Benchmark N/A; consistent with staff capacity 100%
Related Strategic Plan Goal Quality of Life & Safety Quality of Life & Safety
D-23
PUBLIC WORKS | TRANSPORTATION: BUENA VISTA CHANNEL, LIGHTING & LANDSCAPING DISTRICTS
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
176,988 $ 39,690 19,125 5,999 241,802
184,113 $ 46,810 22,211 8,576 261,710
186,130 $ 49,750 21,383 11,301 268,564
198,815 53,433 22,249 13,007 287,504
144,882 26,766 230,825 417,506 467,037 18,890.00 1,305,906
107,249 21,892 235,467 497,444 548,090 1,410,142
131,558 62,632 222,711 555,057 567,418 1,539,376
131,558 62,632 223,911 569,971 571,808 1,559,880
1,547,708 $
1,671,852 $
1,807,940 $
1,847,384
Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $ Full Time Positions Hourly/FTE Positions
Account:
1.95 0.00
162 163 164
1.95 0.00
Fund:
1.95 0.00
1.95 0.00
Special Revenue- Street Light Maintenance Special Revenue-Buena Vista Channel Special Revenue-LLD 2
ABOUT The Transportation Engineering Division provides oversight of the Buena Vista Creek Channel Maintenance Assessment District, which funds costs for the maintenance of the Buena Vista Creek Channel drainage system from Jefferson Street east to the South Vista Way bridge. The Transportation Department also provides oversight of the Lighting & Landscaping District 2 and Street Light Maintenance funds, which provide maintenance of streetlights, decorative lighting, street trees and medians within the district boundaries covering newer developments in the city.
SERVICES • •
D-24
Maintain the Buena Vista Creek Channel from Jefferson Street east to the South Vista Way bridge Maintain and repair streetlamps and decorative lighting
RECENT ACCOMPLISHMENTS • • • •
Developed a phased, in-house streetlight pole replacement program Obtained a new Coastal Development Permit from the California Coastal Commission to support ongoing storm drain channel maintenance in coastal areas within the district Obtained a new Lake and Streambed Alteration Agreement from the California Department of Fish & Wildlife to support ongoing, compliant storm drain channel maintenance Completed annual channel maintenance, vegetation clearing and trash removal to reduce localized flooding risk during storm events
GOALS • •
Complete all annual inspections and manage high-priority channel cleanings Complete channel maintenance and prepare the annual report detailing vegetation cutting and debris removal for the Buena Vista Creek Channel Maintenance District
Performance Measure Citywide Streetlight Replacement Program Percentage of Buena Vista Creek Channel cleaned and reported for permitting (equivalent to 20% of district annually)
FY 2025 Actual Audit and bid of Phase 2 complete 100%
FY 2026 Estimated Phase 2 program completed
100%
FY 2027 Projected Initiate Phase 3 and Phase 4 planning 100%
Benchmark
Related Strategic Plan Goal
100%
Quality of Life & Safety
100%
Sustainability & the Natural Environment
D-25
PUBLIC WORKS | UTILITIES: SUMMARY
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services 6,671,142 $
6,636,946 $
7,422,758 $
7,937,754
Retirement Benefits
Salaries & Wages $
1,451,448
1,675,043
1,870,007
2,021,711
Health Insurance
1,058,575
1,106,204
1,077,061
1,354,063
Other Personnel Expenses
1,658,722
1,239,426
423,490
459,509
Personnel Services Subtotal
10,839,887
10,657,619
10,793,316
11,773,037
Operating Expenses Professional & Contract Services
15,536,215
17,666,330
20,656,105
23,438,741
Supplies & Materials
32,810,422
34,836,746
43,237,390
47,043,240
Repair & Maintenance
183,805
247,726
466,643
489,872
Interdepartmental Charges
6,862,313
6,526,903
7,157,619
6,551,741
Other Operating Expenses
16,084,958
26,935,177
47,256,784
21,650,366
Capital Outlay
96,974
41,270
7,150
1,750
Operating Expenses Subtotal
71,574,687
86,254,152
118,781,691
99,175,710
TOTAL EXPENDITURES $
D-26
$
96,911,771
$
129,575,007
$
110,948,747
Full Time Positions
63.50
63.50
62.30
62.50
Hourly/FTE Positions
0.50
0.00
0.50
0.50
UTILITIES • • •
82,414,574
Potable Water Operations Recycled Water Operations Wastewater Operations
PUBLIC WORKS | UTILITIES: POTABLE WATER OPERATIONS
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services 2,980,700 $
3,215,944 $
3,620,599 $
3,715,633
Retirement Benefits
Salaries & Wages $
692,247
799,171
907,195
948,683
Health Insurance
610,494
641,800
546,349
796,233
Other Personnel Expenses
1,085,892
778,144
207,786
221,310
Personnel Services Subtotal
5,369,333
5,435,059
5,281,929
5,681,859
Operating Expenses Professional & Contract Services
7,787,093
9,056,018
11,031,480
12,236,017
Supplies & Materials
29,682,010
32,751,718
38,697,334
42,271,093
Repair & Maintenance
160,487
224,316
346,400
372,400
Interdepartmental Charges
3,766,152
3,554,643
3,902,097
3,669,401
Other Operating Expenses
5,166,700
5,466,975
6,641,874
332,563
Capital Outlay
68,411
38,983
3,600
Operating Expenses Subtotal
46,630,853
51,092,653
60,622,785
TOTAL EXPENDITURES $
52,000,186
$
56,527,712
$
65,904,714
58,881,474 $
64,563,333
Full Time Positions
31.05
31.15
30.90
30.60
Hourly/FTE Positions
0.00
0.00
0.00
0.00
5016310
Fund:
Account:
Enterprise
ABOUT To ensure safe, high-quality drinking water to Carlsbad Municipal Water District customers, the district provides ongoing operation and maintenance to the following: nine storage reservoirs, 457 miles of pipeline, 17 pressure zones, 74 pressure regulating stations, three pumping stations, approximately 14,300 valves, 4,500 fire hydrants and 30,265 potable meters. The district purchases potable water from its wholesale water provider, the San Diego County Water Authority, including desalinated water from the Carlsbad Desalination Plant. The district implements a water asset management plan to minimize the total cost of owning and operating utility assets while continuing to deliver high levels of service at acceptable levels of risk.
SERVICES •
Deliver reliable, safe drinking water and fire flow demand
•
Operate and maintain reservoirs, pressure regulating stations, pump stations, transmission and distribution pipelines, valves, meters and other appurtenances Comply with all water-related health, safety and environmental regulations including state and federal drinking water standards for water quality sampling and reporting
•
D-27
RECENT ACCOMPLISHMENTS •
•
• • • • • • •
Protected the potable water supply by testing approximately 285 city backflow devices and conducting 160 cross-connection tests Completed a construction project to replace broken or malfunctioning valves at 26 operationally critical locations to control flow and minimize disruption of service during shutdowns Completed construction of motorized valve installations at the Maerkle Reservoir site and power and telemetry connection to the SCADA system at El Fuerte Street at Rancho Pancho Completed construction of a replacement of a potable water distribution main beneath the North County Transit District rail corridor, north of Avenida Encinas in the Ponto area Completed construction of the Carlsbad Boulevard Water and Sewer Improvements at Terramar Project Conducted condition assessments on equipment in three potable water pump stations Completed an update of the 2020 Risk and Resilience Assessment as required by the Environmental Protection Agency Submitted CMWD Cross-Connection Control Plan, a comprehensive contamination prevention plan of drinking water from non-potable sources Updated the 2020 Urban Water Management Plan per state regulations
GOALS •
• • • • • •
Implement new regulations for water use efficiency standards issued by the Department of Water Resources and the State Water Resources Control Board Design and bid for Ellery tank rehabilitation Complete design for PRS station upgrade and begin construction improvements at one site Update the Urban Water Management Plan Update the 2019 Utilities Asset Management Master Plan with potable water infrastructure rehabilitation and replacement needs and budget Update Water Master Plan and Asset Management Master Plan and begin environmental impact reports for each of these, master plans Stay within the industry benchmark for water main breaks of 3.4 to 19.4 breaks per 100 miles of pipeline, or less, per the American Water Works Association
Performance Measure Pipeline breaks per 100 miles of pipe Percentage of annual drinking water quality standards met
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
0
<3.4
<3.4
3.4-19.4
100%
100%
100%
100%
Related Strategic Plan Goal Quality of Life & Safety Quality of Life & Safety
SIGNIFICANT CHANGES TO THIS YEAR’S BUDGET The budget to purchase potable water for delivery in the district’s service area increased by $4.2 million to account for San Diego County Water Authority anticipated rate increases.
D-28
PUBLIC WORKS | UTILITIES: RECYCLED WATER OPERATIONS
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services 1,373,512 $
1,251,049 $
1,369,482 $
1,455,088
Retirement Benefits
Salaries & Wages $
264,779
313,954
340,535
362,864
Health Insurance
156,230
162,648
187,006
187,233
Other Personnel Expenses
55,197
63,819
76,310
79,050
Personnel Services Subtotal
1,849,718
1,791,470
1,973,333
2,084,235
Professional & Contract Services
1,890,789
2,150,930
2,500,028
2,841,492
Supplies & Materials
2,836,421
1,796,356
4,170,606
4,374,506
Repair & Maintenance
14,015
6,161
26,743
26,743
Interdepartmental Charges
1,168,003
994,484
974,350
864,835
Other Operating Expenses
410,890
766,090
18,923,166
2,246,129
Capital Outlay
15,234
-
Operating Expenses Subtotal
6,335,352
5,714,021
TOTAL EXPENDITURES $
8,185,070 $
7,505,491
Full Time Positions
10.85
11.45
10.90
10.45
Hourly/FTE Positions
0.50
0.50
0.50
0.50
5026310
Fund:
Operating Expenses
Account:
$
1,750
1,750
26,596,643
10,355,455
28,569,976
$
12,439,690
Enterprise
ABOUT The Carlsbad Municipal Water District owns the Carlsbad Water Recycling Facility located next to the Encina Wastewater Authority treatment plant. The district delivers recycled water in compliance with State of California Title 22 quality standards for irrigation and industrial uses. The district’s crossconnection control and backflow program ensures a safe supply of drinking water, preventing crosscontamination of recycled and potable systems, in accordance with federal and state regulations. Recycled water is not subject to state water conservation requirements. The district established a recycled water asset management plan to reduce operating costs associated with utility assets while continuing to deliver high levels of service at acceptable levels of risk. Operation and maintenance of the district’s recycle water system includes four storage tanks with pump stations, and pressure regulating stations, six pressure zones, and approximately 97 miles of pipelines, over 1,050 valves and 1,017 meters. The district also purchases and delivers recycled water from the Vallecitos Water District’s Meadowlark Water Reclamation Facility.
D-29
SERVICES • • • •
Operate and maintain infrastructure, including the Carlsbad Water Recycling Facility, reservoirs, pressure regulating stations, pump stations, pipelines, valves and meters Wastewater must be treated to Title 22 disinfected tertiary effluent standards to deliver 1.3 billion gallons of recycled water for irrigation and industrial purposes Perform inspections on systems and backflows to prevent cross-connections and protect the potable water system Convert irrigation sites from potable water to recycled water as needed
RECENT ACCOMPLISHMENTS •
• • •
Produced and delivered 100% of recycled water for CMWD customers as the Vallecitos Water District’s Meadowlark Water Reclamation Facility was under construction for fiscal year 2026 Performed inspections at all recycled water use sites to inform site operators of any modifications needed to comply with guidelines for the safe use of recycled water Completed the electrical panel design for the recycled water portion of the Supervisory Control and Data Acquisition system replacement project Submitted CMWD Cross-Connection Control Plan, a comprehensive contamination prevention plan of drinking water from non-potable sources, in accordance with the state’s Cross-Connection Control Policy Handbook
GOALS • • • •
Stay within the industry benchmark for water main breaks of 3.4 to 19.4 breaks per 100 miles of pipeline, per the American Water Works Association, or less Maintain recycled water costs at or below 75% of potable water irrigation cost to encourage the use of recycled water Begin a business case analysis to expand the existing CWRF or keep purchasing recycled water from the Vallecitos Water District Negotiate a new agreement for purchase of recycled water from the Vallecitos Water District
Performance Measure Pipeline breaks per 100 miles of pipe Cost of recycled water as a percentage of potable water cost
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
1.03
< 3.4
< 3.4
3.4-19.4
73%
73%
75%
< 75%
Related Strategic Plan Goal Quality of Life & Safety Organizational Excellence & Fiscal Health
SIGNIFICANT CHANGES TO THIS YEAR’S BUDGET The budget includes an increase of approximately $434,000 to support the cost increase in production of recycled water at CWRF and anticipated increase under the new draft agreement between the district and the Vallecitos Water District to purchase recycled water.
D-30
PUBLIC WORKS | UTILITIES: WASTEWATER OPERATIONS
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services 2,316,930 $
2,169,953 $
2,432,677 $
2,767,033
Retirement Benefits
Salaries & Wages $
494,422
561,918
622,277
710,164
Health Insurance
291,851
301,756
343,706
370,597
Other Personnel Expenses
517,633
397,463
139,394
159,149
Personnel Services Subtotal
3,620,836
3,431,090
3,538,054
4,006,943
Professional & Contract Services
5,858,333
6,459,382
7,124,597
8,361,232
Supplies & Materials
291,991
288,672
369,450
397,641
Repair & Maintenance
9,303
17,249
93,500
90,729
Interdepartmental Charges
1,928,158
1,977,776
2,281,172
2,017,505
Other Operating Expenses
10,507,368
20,702,112
21,691,744
19,071,674
Capital Outlay
13,329
2,287
1,800
Operating Expenses Subtotal
18,608,482
29,447,478
31,562,263
Operating Expenses
TOTAL EXPENDITURES $
22,229,318
$
32,878,568
$
35,100,317
29,938,781 $
33,945,724
Full Time Positions
21.60
20.90
20.50
21.45
Hourly/FTE Positions
0.00
0.00
0.00
0.00
5116310
Fund:
Account:
Enterprise
ABOUT
The Utilities Department is responsible for providing wastewater services to approximately 85,000 customers within the city’s service area. The Utilities Department’s wastewater mission is to prevent sewer spills and convey waste efficiently to the Encina Wastewater Authority’s treatment plant by properly managing, operating and maintaining all parts of the city’s sewer system. A portion of Carlsbad’s treated wastewater is diverted from the ocean outfall and sent to the Carlsbad Water Recycling Facility for further treatment. The Wastewater Division maintains a sanitary sewage collection system that includes 11 wastewater lift stations and wet wells and about 275 miles of gravity main lines, six miles of pressurized main lines and approximately 6,200 sewer manholes. The Utilities Department implements a robust wastewater asset management program to minimize the total cost of owning and operating utility assets while continuing to deliver high levels of service at acceptable levels of risk.
SERVICES • • •
Operate and maintain lift stations, wet wells, gravity sewer mains, force mains, maintenance access holes and other infrastructure elements Collect wastewater and convey it to the Encina Wastewater Authority treatment plant Comply with all state and federal wastewater discharge regulations
D-31
• •
Participate in the activities and budgets of the Encina Wastewater Authority as part of the Encina Joint Powers Authority Administer the city’s Fats, Oils and Grease program to reduce pipeline clogs and subsequent wastewater spills
RECENT ACCOMPLISHMENTS • • • • • • • •
Zero spills from or caused by the public collections system in fiscal year 2025-26 Updated the Sewer System Management Plan in compliance with the State Water Resources Control Board Completed the Supervisory Control and Data Acquisition, or SCADA, system replacement software design for wastewater Completed construction of the Carlsbad Water and Sewer Improvements at Terramar Project Performed condition assessments on over 50,000 linear feet of large diameter sewer interceptor mains Started construction for replacement of electrical control panels at wastewater lift stations Replaced the emergency generator at the Poinsettia Lift Station Completed the design and awarded a contract to upsize 2,600 linear feet of sewer main along Poinsettia Lane and rehabilitate 21 manholes in the Bressi Ranch area
GOALS • • • • •
Update the 2019 Utilities Asset Management Master Plan with wastewater infrastructure rehabilitation and replacement needs and budget Complete the design of the Chinquapin Lift Station improvements Initiate design of electrical improvements at the Batiquitos Lift Station Complete the upsizing of 2,600 linear feet of sewer main along Poinsettia Lane and rehabilitate 21 manholes in the Bressi Ranch area and around the Poinsettia Lift Station Complete design and award contract for installation of cured-in-place pipe to line sewer mains
Performance Measure Rate of spills per 100 miles of pipe Department goal for amount of sewer pipe cleaned per year
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
0.73
< 0.38
< 0.38
0.2-7.0
100%
100%
100%
100%
Related Strategic Plan Goal Quality of Life & Safety Quality of Life & Safety
SIGNIFICANT CHANGES TO THIS YEAR’S BUDGET The budget includes an increase of approximately $500,000 to support the anticipated increase from Encina Water Authority for the treatment of the city’s wastewater.
D-32
COMMUNITY SERVICES The Community Services Branch includes programs, services and events that support Carlsbad's excellent quality of life. The branch includes the following key areas of focus: • • • • •
Community Service Administration Community Development Housing & Homeless Services Library & Cultural Arts Parks & Recreation
These city service areas ensure the city’s planning and building policies are carried out, foster lifelong learning, support strong neighborhoods, administer affordable housing and homeless response programs, attend to the community’s health and wellness, and promote transparency in government. Jeff Murphy Deputy City Manager, Community Services 442-339-2783 jeff.murphy@carlsbadca.gov
E-1
E-2
COMMUNITY SERVICES | ADMINISTRATION
2023-24 Actual
2024-25 Actual
2026-27 Budget
2025-26 Budget
Personnel Services Salaries & Wages $
402,842
$
412,830
$
424,377
$
444,628
Retirement Benefits
87,850
101,147
112,011
118,077
Health Insurance
39,619
43,568
46,292
54,536
Other Personnel Expenses
10,338
9,710
11,927
12,680
Personnel Services Subtotal
540,649
567,255
594,607
629,921
Operating Expenses Professional & Contract Services
1,348
3,344
9,000
9,000
Supplies & Materials
-
433
2,200
950
Repair & Maintenance
-
-
-
-
52,433
36,578
39,662
38,531
Other Operating Expenses
-
1,033
1,750
3,000
Capital Outlay
-
-
-
-
53,781
41,388
52,612
51,481
Interdepartmental Charges
Operating Expenses Subtotal TOTAL EXPENDITURES $
594,430
$
608,643
$
647,219
$
681,402
Full Time Positions
2.00
2.00
2.00
2.00
Hourly/FTE Positions
0.00
0.00
0.00
0.00
0012410
Fund:
Account:
General
ABOUT The Community Services Branch provides programs and services that promote and support Carlsbad’s excellent quality of life. Community Services Administration provides leadership to the Community Services Branch and provides oversight and management of the city’s real estate assets.
SERVICES Functional areas include department management, budget oversight and real estate services. The Community Services Branch ensures that the city’s planning, land development engineering, building and code enforcement policies are carried out; that affordable housing and homelessness programs are administered; that lifelong learning is fostered; that library and cultural arts services are delivered; that the city’s health and wellness are advanced through parks, recreation, and senior services; and that the city’s real estate assets are well managed.
RECENT ACCOMPLISHMENTS • •
Obtained City Council approval for a loan agreement and lease amendment with New Village Arts, the city’s tenant in the Bauer Lumber building on State Street Obtained City Council approval for a long-term lease with MiraCosta College, the city’s tenant in the Las Palmas building
E-3
• • • • • • •
Finalized the Housing Element Rezone Program and adopted the California Coastal Commission’s revisions Received City Council approval of the 2026 Building Code, with local amendments Introduced new software, Green Halo, to track construction waste management for building permits Completed the CAPRA self-assessment to confirm the Parks & Recreation Department meets national standards for excellence in parks and recreation Obtained City Council approval of the plans and specifications to bid and award the construction contract for the Veterans Memorial Park project Assisted in the construction monitoring and administration for the Monroe Street Pool Renovation/Expansion Project Served 25,316 meals through the Carlsbad Senior Center nutrition program
GOALS • • • • • • •
E-4
Revise City Council Policy 64, regulated wireless communication facilities Expand Citizens Access Portal to allow for online submittal and review of more complex permit types Complete the comprehensive update to the city’s Engineering Standards
Secure CAPRA accreditation, which confirms the Parks & Recreation Department meets nationally recognized standards for excellence, through a thorough review and hearing Obtain City Council approval on the Robertson Ranch Park final master plan and seek direction to commence the construction documentation phase of the project Assist in the construction monitoring and administration for the Monroe Street Pool project Reopen the renovated and expanded Monroe Street Pool to resume daily operations and added recreation programs and instructional classes
COMMUNITY SERVICES | COMMUNITY DEVELOPMENT: SUMMARY
Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
5,272,977 $ 1,195,521 754,090 182,861 7,405,449
5,527,445 $ 1,379,305 794,180 167,941 7,868,871
6,014,157 $ 1,499,979 929,962 197,382 8,641,480
6,421,199 1,621,801 1,011,662 213,775 9,268,437
1,481,915 70,684 1,060 1,549,984 79,746 3,183,389
1,543,268 61,846 1,520 1,693,726 96,419 3,396,779
1,398,683 78,551 370 1,780,068 76,550 3,334,222
1,027,620 72,614 870 1,598,907 76,550 2,776,561
TOTAL EXPENDITURES $
10,588,838
$
11,265,650
$
11,975,702
$
12,044,998
General Fund $ Special Revenue Fund TOTAL FUNDING $
10,559,088 29,750 10,588,838
$
11,228,991 36,659 11,265,650
$
11,975,702 11,975,702
$
12,044,998 12,044,998
Full Time Positions Hourly/FTE Positions
52.00 7.00
$
51.00 7.00
$
51.00 7.70
$
51.00 7.70
COMMUNITY DEVELOPMENT • • • • •
Administration Land Development Engineering Planning Building Code Enforcement
E-5
COMMUNITY SERVICES | COMMUNITY DEVELOPMENT: ADMINISTRATION
2023-24 Actual
2024-25 Actual
2025-26 Budget
980,987 $
2026-27 Budget
Personnel Services Salaries & Wages $
975,574
1,060,709 $
1,129,010
Retirement Benefits
223,000
$
241,469
261,998
288,737
Health Insurance
143,040
138,053
145,764
151,575
Other Personnel Expenses
30,682
27,115
32,517
35,166
Personnel Services Subtotal
1,372,296
1,387,624
1,500,988
1,604,488
Operating Expenses Professional & Contract Services
9,627
7,640
80,000
35,000
Supplies & Materials
22,986
17,107
32,537
24,400
Repair & Maintenance
747
92
20
20
Interdepartmental Charges
244,918
291,062
361,345
335,322
Other Operating Expenses
27,024
8,036
14,750
14,750
-
-
-
-
305,302
323,937
488,652
409,492
1,677,598 $
1,711,561 $
1,989,640 $
2,013,980
Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $ Full Time Positions
7.00
7.00
7.00
7.00
Hourly/FTE Positions
0.50
0.50
1.20
1.20
Account:
0013010
Fund:
General
ABOUT Community Development Administration provides leadership, financial assistance and administrative support for the delivery of land development programs and services; plans for the efficient use of resources and facilities; and provides liaison services, resource assistance and technical guidance to the Historic Preservation Commission, Planning Commission and City Council. Community Development Administration adds value to organizational processes and procedures to ensure best practices are implemented and that they support the broader goals of the organization.
SERVICES • • • •
Provide organizational leadership and administrative support Manage and oversee operating budget Coordinate contract administration and records Support the department’s business systems and technology
RECENT ACCOMPLISHMENTS • •
E-6
Introduced new software, Green Halo, to track construction waste management for building permits Expanded the Customer Self Service Portal for online permits to include additional permit types
•
• • •
Developed enhancements to city’s Enterprise Permitting Software EnerGov to help simplify and streamline permit intake: update to ‘permit issued email’ on building permits to include information on requesting inspections and processing revisions, developed one click to email applicants when fees are due, transitioned Entertainment Licenses and Zone Code Compliance Letters to be processed and paid electronically, updated ICC Factors for building valuations, implemented auto email notifications alerting applicants when permits are expiring and how to renew online (ROW Use), and enhanced self-service appointment system messaging to include instructions on how to apply for permits online Updated existing electronic bulletins on the city’s website reflecting new state laws impacting land use topics Updated the Community Development Department webpages for building and code enforcement with updated content, organization, forms and resources Improved GIS map content regarding Coastal Zone jurisdiction information
GOALS • • • • •
Monitor Green Halo implementation Expand Citizens Access Portal to allow for online submittal and review of more complex permit types Continue updating webpage content Collaborate with the IT Department as the city prepares for transition to electronic plan review Continue to identify and implement process improvements that help simplify and streamline permit intake, routing and customer service delivery and interactions
E-7
COMMUNITY SERVICES | COMMUNITY DEVELOPMENT: LAND DEVELOPMENT ENGINEERING
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services 1,066,477 $
1,139,226 $
1,249,988 $
1,345,689
Retirement Benefits
253,788
289,802
315,466
342,536
Health Insurance
169,157
185,141
227,445
209,473
Other Personnel Expenses
37,829
34,471
40,655
44,276
Personnel Services Subtotal
1,527,251
1,648,640
1,833,554
1,941,974
Professional & Contract Services
189,721
276,314
315,183
283,683
Supplies & Materials
2,807
3,532
3,200
3,200
Repair & Maintenance
-
54
-
-
Salaries & Wages $
Operating Expenses
Interdepartmental Charges
308,214
282,321
264,118
273,509
Other Operating Expenses
5,458
7,943
14,360
14,360
-
-
-
-
506,200
570,164
596,861
574,752
TOTAL EXPENDITURES $
2,033,451 $
2,218,804 $
2,430,415 $
2,516,726
Full Time Positions
11.00
10.00
10.00
10.00
Hourly/FTE Positions
1.50
1.50
1.50
1.50
Capital Outlay Operating Expenses Subtotal
Account:
0013110 0013120
Fund:
General
ABOUT The Land Development Engineering Division ensures that all grading and public improvements required for new development projects and work in the public right-of-way comply with adopted codes and engineering standards.
SERVICES • • • • •
Review and process requests to subdivide land Perform plan checking and permitting for grading and public improvements projects Conduct flood plain administration and residential assistance Maintain the engineering section of the public counter Provide customer service and effective public information
RECENT ACCOMPLISHMENTS • •
E-8
Implemented temporary and permanent water meter permits in the Customer Self Service Portal Successfully transitioned all Land Development Engineering permit intake, review and approval processes to a fully digital platform, eliminating paper submittals and improving efficiency, accessibility and record management
• •
Updated and simplified all submittal checklists for digital intake of submittals Issued 1,142 engineering permits and performed 2,645 reviews for ministerial and discretionary permits, consistent with level of activity in recent years
GOALS • • • • •
Complete the comprehensive update to the city’s Engineering Standards Implement processing changes to streamline permit reviews to consistently meet key performance targets Expand implementation of the Customer Self Service Portal to allow processing of additional permit types, such as right-of-way permits Continue to refine procedures and adopt new technology to enhance the customer experience Complete discretionary permit plan check reviews within 21 days of submittal and building permit plan check reviews within 14 days of submittal, at least 80% of the time
Performance Measure Percentage of discretionary permit plan check reviews completed within 21 days of submittal Percentage of building permit plan check reviews completed within 14 days of submittal
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
Related Strategic Plan Goal
8281%
89%
80%
≥80%
Organizational Excellence & Fiscal Health
8684%
91%
80%
≥80%
Organizational Excellence & Fiscal Health
E-9
COMMUNITY SERVICES | COMMUNITY DEVELOPMENT: PLANNING
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services 1,840,242 $
1,946,452 $
2,136,977 $
2,256,990
Retirement Benefits
Salaries & Wages $
431,070
496,519
547,412
582,233
Health Insurance
228,469
264,513
321,585
374,046
Other Personnel Expenses
63,749
59,061
71,377
76,750
Personnel Services Subtotal
2,563,530
2,766,545
3,077,351
3,290,019
Professional & Contract Services
473,023
422,421
504,000
209,437
Supplies & Materials
31,562
25,896
27,650
27,650
Repair & Maintenance
-
Operating Expenses
98
-
-
Interdepartmental Charges
424,368
509,548
554,992
480,438
Other Operating Expenses
35,214
51,844
25,007
25,007
-
-
-
Capital Outlay Operating Expenses Subtotal
964,167
1,009,807
1,111,649
742,532
TOTAL EXPENDITURES $
3,527,697 $
3,776,352 $
4,189,000 $
4,032,551
General Fund $
3,497,947 $
3,739,693 $
4,189,000 $
4,032,551
Special Revenue TOTAL FUNDING $
29,750 3,527,697 $
36,659 3,776,352 $
4,189,000 $
4,032,551
Full Time Positions
19.00
19.00
19.00
19.00
Hourly/FTE Positions
2.00
2.00
1.50
1.50
Account:
00132XX 1752510
Fund:
General Special Revenue – Habitat Mitigation
ABOUT The Planning Division is responsible for developing, updating and maintaining the city’s land use regulations (i.e., General Plan, Local Coastal Program and Zoning Ordinance) pursuant to City Council direction and state mandates, as well as ensuring new growth and development complies with those established regulations.
SERVICES • • • • •
E-10
Maintain and modify plans, ordinances and policies for housing and local coastal resource plans Ensure new development adheres to all applicable land use codes, policies and regulations Assure private and public projects comply with the California Environmental Quality Act and the city’s environmental protection procedures Respond to questions and inquiries related to permit processing and development standards Provide technical support to the Planning Commission and the City Council
RECENT ACCOMPLISHMENTS • •
• • • • •
Issued building permits for housing projects and ADUs resulting in a total of approximately 540 new housing units that contribute to the implementation of the city’s Housing Element Received California Coastal Commission certification of Coastal Commission-requested modifications to the city’s 2021 Housing Element rezone program and objective design standards Updated existing zoning regulations related to Accessory Dwelling Units to maintain consistency between the Carlsbad Municipal Code and state housing law Received City Council approval of the Annual Housing Element & General Plan Progress Report Implement the plan for Carlsbad Tomorrow: Growth Management Citizens Committee recommendations on the city’s Growth Management Plan Worked with the California Coastal Commission on the resubmittal of the City Councilapproved Local Coastal Program Update Presented the City Council with varying options to regulate drive-thru restaurants
GOALS • • • • • • • • • •
Continue implementation of the 2021-2029 Housing Element program objectives and tasks Develop regulations and permit processes to allow temporary uses on private property Present options to update City Council Policy 64 related to the location and screening of telecommunication facilities Continue implementing the recommendations from Carlsbad Tomorrow Conduct the next bi-annual Zone Code Cleanup to ensure accuracy, clarity and consistency of language and standards in the Carlsbad Municipal Code Continue working with the California Coastal Commission on approval of the city’s comprehensive update to its Local Coastal Program Continue working with the California Coastal Commission on approval of regulations and permit review procedures for new or expanded airport land uses Implement processing changes to streamline permit reviews to consistently meet key performance targets Ensure discretionary plan check reviews are completed within 30 days of submittal, at least 90% of the time Ensure building permit plan check reviews are completed within 14 days of submittal, at least 80% of the time
Performance Measure Percentage of discretionary permit plan check reviews completed within 30 days of submittal Percentage of building permit plan check reviews completed within 14 days of submittal
FY 2025 Actual
FY 2026 Actual
FY 2027 Projected
Related Strategic Plan Goal
Benchmark
87%
94%
90%
≥90%
Organizational Excellence & Fiscal Health
61%
85%
85%
≥80%
Organizational Excellence & Fiscal Health
E-11
COMMUNITY SERVICES | COMMUNITY DEVELOPMENT: BUILDING
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services Salaries & Wages $
738,627
$
847,026
$
917,420
$
991,903
Retirement Benefits
166,633
209,628
226,419
246,917
Health Insurance
114,795
119,199
139,087
182,122
Other Personnel Expenses
27,618
26,847
31,295
34,187
Personnel Services Subtotal
1,047,673
1,202,700
1,314,221
1,455,129
Professional & Contract Services
770,958
800,456
449,000
449,000
Supplies & Materials
2,818
7,267
3,414
3,414
Repair & Maintenance
116
577
250
250
Interdepartmental Charges
361,143
375,690
352,407
311,211
Other Operating Expenses
7,320
19,104
12,583
12,583
-
-
-
-
817,654
776,458
2,131,875 $
2,231,587
Operating Expenses
Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $
1,142,355
1,203,094
2,190,028 $
2,405,794 $
Full Time Positions
9.00
9.00
9.00
9.00
Hourly/FTE Positions
1.00
1.00
1.50
1.50
Account:
0013610
Fund:
General
ABOUT The Building Division staff are the main point of contact for individuals wanting to build or modify a structure on their property. Building staff provide guidance and review projects for conformance with state and local building standards. Once a permit has been issued to authorize construction, a building inspector is assigned to help the property owner ensure that the contractor’s work is consistent with approved plans.
SERVICES • • • •
Conduct fee assessment, plan review, permit issuance and inspection for compliance with state and local codes including recycling, stormwater, energy generation and conservation Respond to questions and inquiries related to permit processing and construction standards Provide information related to ongoing construction projects and historical building records Maintain records during construction and prepare files for electronic conversion following final approval
RECENT ACCOMPLISHMENTS • • •
E-12
Issued 3,732 building permits valued at over $226 million in fiscal year 2025 Conducted 16,768 building inspections in fiscal year 2025 Expanded the Customer Self Service Portal to include more permit submission types
•
•
Earned one certification from the International Code Council—an organization that develops construction and public safety codes—for the city’s building inspection team, which demonstrates clear understanding and qualification to inspect certain types of construction or buildings Updated the city’s building code to comply with the 2026 California Building Code revisions
GOALS • • • •
Continue to identify and implement process improvements that help simplify and streamline development permit intake, routing and customer service interactions Develop a procedural manual to serve as both a training guide and operations resource guide for building and counter technicians Ensure building plan check review is completed within 14 days of submittal, at least 80% of the time Ensure building permit inspections occur within 24 hours of request, at least 80% of the time
Performance Measure Percentage of building permit plan check reviews completed within 14 days of submittal Percentage of building inspections completed within 24 hours of request
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
Related Strategic Plan Goal
92%
92%
90%
≥80%
Organizational Excellence & Fiscal Health
94%
95%
95%
≥80%
Organizational Excellence & Fiscal Health
E-13
COMMUNITY SERVICES | COMMUNITY DEVELOPMENT: CODE ENFORCEMENT
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services Salaries & Wages $
652,057
$
613,754
$
649,063
$
697,607
Retirement Benefits
121,030
141,887
148,684
161,378
Health Insurance
98,629
87,274
96,081
94,446
Other Personnel Expenses
22,983
20,447
21,538
23,396
Personnel Services Subtotal
894,699
863,362
915,366
976,827
Professional & Contract Services
38,586
36,437
50,500
50,500
Supplies & Materials
10,511
8,044
11,750
13,950
Repair & Maintenance
197
699
100
600
Interdepartmental Charges
211,341
235,105
247,206
198,427
Other Operating Expenses
4,730
9,492
9,850
9,850
-
-
-
-
265,365
289,777
319,406
273,327
1,160,064 $
1,153,139 $
1,234,772 $
1,250,154
Operating Expenses
Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $ Full Time Positions
6.00
6.00
6.00
6.00
Hourly/FTE Positions
2.00
2.00
2.00
2.00
Account:
0013620
Fund:
General
ABOUT The Code Enforcement Division, working with residents and its partner enforcement agencies, is tasked with enforcing the city’s laws that govern land use and quality of life issues, including public nuisances, safety and welfare. The purpose of these laws and their enforcement is to help maintain safe and healthy living and working conditions for the members of the community. The division’s approach is not to be punitive but to first attempt to achieve compliance through education before more formal enforcement methods like citations are applied.
SERVICES • • • • • • • •
E-14
Enforce zoning, building, general property maintenance and other municipal codes Conduct inspections of alleged violations received from resident and business complaints Proactively enforce violations for issues including graffiti, illegal signs and active unpermitted construction Assist individuals on how to secure required permits and comply with applicable codes Collaborate with partner enforcement agencies on overlapping enforcement cases Ensure that residents are aware of and follow rules on short-term vacation rentals Conduct annual inspections for the California Department of Housing and Community Development Mobile Home Park Maintenance Program Assist the Police Department in enforcement warrants
RECENT ACCOMPLISHMENTS • • • • •
Completed first full year of issuing short-term vacation rental permits (385 total permits issued) Brought approximately 405 expired business licenses successfully into compliance Removed roughly 3,964 illegal signs from the public right-of-way Completed PC832 Post Certification for two code enforcement officers Obtained code enforcement officer certification through the California Association of Code Enforcement Officers across all of the division’s full-time code enforcement officers and its manager, a first for the department
GOALS • • • •
Have all code enforcement officer maintain CACEO Code Enforcement Officer Certifications during fiscal year reporting period Continue to develop and expand the department’s enforcement tracking system to improve operations management Create new reports with IT to report new data for short-term vacation rental activities Prioritize the safety and well-being of the community: close all Category 1 cases within three business days of complaint, close all Category 2 cases within 30 business days of complaint, and close all Category 3 cases within 50 business days of complaint, 80% of the time
Performance Measure Percent of Category 1 cases closed within three business days of complaint Percent of Category 2 cases closed within 30 business days of complaint Percent of Category 3 cases closed within 50 business days of complaint
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
Related Strategic Plan Goal
100%
100%
100%
≥80%
Economic Vitality
84%
97%
90%
≥80%
Economic Vitality
91%
96%
90%
≥80%
Economic Vitality
E-15
COMMUNITY SERVICES | HOUSING & HOMELESS SERVICES: SUMMARY
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
1,477,441 $ 343,576 208,671 52,113 2,081,801
1,487,226 $ 393,194 231,620 44,816 2,156,856
1,834,535 $ 460,575 276,878 61,769 2,633,757
2,094,902 504,010 255,532 67,247 2,921,691
1,505,703 277,924 27 453,034 15,667,266 177,636 18,081,590
5,188,941 268,702 1,134 488,154 16,626,343 11,632 22,584,906
1,734,369 300,458 200 493,959 16,687,992 8,070 19,225,048
1,727,526 237,336 200 444,251 17,876,239 214,894 20,500,446
Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $
20,163,391
$
General Fund $ Special Revenue Fund Trust Fund TOTAL FUNDING $
2,541,642 $ 17,612,916 8,833 20,163,391 $
Full Time Positions Hourly/FTE Positions
16.00 1.53
HOUSING & HOMELESS SERVICES • • • • •
E-16
Housing Services Homeless Services Affordable Housing Programs Federally Funded Community Assistance Programs Successor Agency
24,741,762
$
21,858,805
$
23,422,137
2,470,400 $ 22,271,362 24,741,762 $
3,317,186 $ 18,541,619 21,858,805 $
3,723,022 19,699,115 23,422,137
16.00 1.53
16.00 1.60
16.00 1.60
COMMUNITY SERVICES | HOUSING & HOMELESS SERVICES: HOUSING SERVICES 2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services Salaries & Wages $
557,648
$
478,056
$
706,082
$
760,705
Retirement Benefits
117,862
143,200
182,812
198,761
Health Insurance
84,639
93,113
144,957
118,522
Other Personnel Expenses
17,639
15,060
23,690
25,641
Personnel Services Subtotal
777,788
729,429
1,057,541
1,103,629
Professional & Contract Services
254,066
224,951
271,000
271,200
Supplies & Materials
14,200
10,673
12,400
12,700
Repair & Maintenance
-
-
-
-
Interdepartmental Charges
93,521
169,690
153,698
270,442
Other Operating Expenses
240,444
114,464
22,950
95,398
-
-
-
-
602,231
519,778
460,048
649,740
TOTAL EXPENDITURES $
1,380,019 $
1,249,207 $
1,517,589 $
1,753,369
General Fund $
1,159,695 $
1,149,722 $
1,517,589 $
1,753,369
Special Revenue TOTAL FUNDING $
220,324 1,380,019 $
99,485 1,249,207 $
1,517,589 $
1,753,369
Operating Expenses
Capital Outlay Operating Expenses Subtotal
Full Time Positions
4.17
5.90
5.90
5.90
Hourly/FTE Positions
0.75
0.75
0.50
0.50
Account:
0012510 0012520 1502810 1713210
Fund:
General General Special Revenue – Community Grants Special Revenue – Agriculture Mitigation Fee
ABOUT The Housing Services Division provides various programs, activities and services that assist in the effort to sustain an extraordinary Carlsbad community, including disbursing community grants, delivering community education programs, funding the Carlsbad Hiring Center and supporting the Carlsbad Housing Commission and Agricultural Conversion Mitigation Fee Citizens Advisory Committee.
SERVICES • • •
Provide grants in accordance with City Council policies to community organizations, teams and special events that benefit and enrich residents in the community Fund projects that improve agricultural lands and protect Carlsbad’s natural resources through the Agricultural Conversion Mitigation Fee program Offer community education programs for high school students and the CityStuff program for third graders—a collaboration between the City of Carlsbad, Junior Achievement and local elementary schools to introduce young students to the role and functions of local government E-17
• • • •
•
Provide low income and homeless services support through the Carlsbad Service Center Administer the Minor Home Repair Program, which provides forgivable home repair loans to low-income households who own and occupy their home as their primary residence Support the Housing Commission and Agricultural Conversion Mitigation Fee Citizens Advisory Committee Collaborate with Community Development Department on housing development review, affordability compliance, Housing Element programs and regulatory compliance with state housing laws Oversee the Affordable Housing Resale Program and compliance of existing affordable housing portfolio
RECENT ACCOMPLISHMENTS • • •
Conducted the Carlsbad Student Leader Academy with 32 high school student participants Partnered with 15 local elementary schools to host 46 CityStuff field trips, engaging 1,080 third grade students Facilitated affordable housing projects including 129 new affordable dwelling units in fiscal year 2025
GOALS • •
•
Distribute Agricultural Conversion Mitigation Fee funding grants to projects that improve agricultural land and protect Carlsbad’s natural resources Continue to coordinate with Community Development Department on housing development review, affordability compliance, Housing Element programs and regulatory compliance with state housing laws Initiate the data collection process to support the development of a local preference policy aimed at reducing the displacement of low-income households; this policy would prioritize Carlsbad residents for first access to affordable housing opportunities
Performance Measure Community Grants dispersed Number of 3rd grade students educated on civic leadership
E-18
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
$7,656
$8,059
$9,000
N/A
1,080
1,032
1,045
N/A
Related Strategic Plan Goal Community Character Community Character
COMMUNITY SERVICES | HOUSING & HOMELESS SERVICES: HOMELESS SERVICES 2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services Salaries & Wages $
409,804
$
409,835
$
574,753
$
619,313
Retirement Benefits
99,450
113,074
144,216
Health Insurance
60,636
58,062
73,362
157,175 76,404
Other Personnel Expenses
13,146
11,681
18,587
20,090
Personnel Services Subtotal
583,036
592,652
810,918
872,982
Professional & Contract Services
832,353
4,429,629
899,325
899,438
Supplies & Materials
9,227
10,852
17,500
15,137
Repair & Maintenance
-
-
-
-
Interdepartmental Charges
46,449
71,700
78,118
108,837
Other Operating Expenses
1,517,708
626,319
454,547
288,000
-
-
Operating Expenses
Capital Outlay
-
Operating Expenses Subtotal TOTAL EXPENDITURES $ General Fund $
-
2,405,737
5,138,500
1,449,490
1,311,412
2,988,773 $
5,731,152 $
2,260,408 $
2,184,394
1,799,597 $
1,969,653
1,381,947 $
1,320,678 $
Special Revenue
1,606,826
4,410,474
TOTAL FUNDING $
2,988,773 $
5,731,152 $
460,811
214,741
2,260,408 $
2,184,394
Full Time Positions
4.10
4.00
4.20
4.20
Hourly/FTE Positions
0.00
0.00
0.50
0.50
Account:
0012540 1362610
Fund:
General Special Revenue - PLHA
ABOUT The Homeless Services Division is responsible for leading all strategies, initiatives and actions related to the city’s goal of addressing the complex needs of individuals experiencing or at risk of experiencing homelessness in a compassionate and effective manner and reducing the impacts of homelessness on the community. The division prioritizes measurable outcomes, fiscal accountability and regional collaboration to maximize the impact of limited public resources. This division uses evidence-based practices, data, community input and feedback from people with lived experience to implement outcome-focused solutions to prevent and reduce homelessness. The strategies and initiatives surround three main areas of focus: shelter and housing, outreach and access to services and public safety.
SERVICES • • •
Manage and implement the city’s Homelessness Action Plan Provide resources and referrals for individuals and families at risk of or experiencing homelessness Maintain a By-Name List and facilitate care conferencing for households experiencing homelessness in Carlsbad to support coordinated, housing-focused interventions E-19
• •
• •
•
Coordinate the collaboration of all community partners and contractors working on homelessness within the city Oversee contracts for homelessness prevention outreach, substance abuse education and referral, street medicine, employment and benefits services, emergency shelter, rapid rehousing, permanent supportive housing, social workers and encampment abatement services Collaborate with the Police Department’s Homeless Outreach Team, neighboring jurisdictions and county resources on homelessness issues to ensure a coordinated response Administer and monitor federal and state grant funds, including HUD Continuum of Care, California Encampment Resolution Funding, National Opioid Settlement and Permanent Local Housing Allocation, ensuring compliance and performance reporting Oversee the limited-term motel voucher program providing short-term emergency lodging for individuals and families facing temporary homelessness
RECENT ACCOMPLISHMENTS • • •
•
• •
Transitioned 148 individuals experiencing homelessness into permanent housing, a 66% increase from the prior fiscal year Prevented 122 at-risk individuals from entering homelessness, more than double the amount compared to the same period a year earlier Exceeded interim and permanent housing placement outcome requirements halfway through the contract period for a $2.4 million state grant focused on reducing unsheltered homelessness in Carlsbad Village Completed the first two implementation zones of an $11.4 million state grant in partnership with the City of Oceanside, reducing encampments along the SR-78 corridor and connecting individuals to permanent housing Implemented a $3 million state grant to help support people living in vehicles with pathways to shelter and housing Launched a collaborative effort to improve coordination and resource alignment across community partners per the City Council approved Homelessness Action Plan
GOALS • • • • •
Assist in expanding shelter capacity of the La Posada de Guadalupe shelter Increase permanent housing placements through data-driven, housing-focused interventions Strengthen prevention strategies to reduce the number of people experiencing homelessness Improve system effectiveness by reducing the amount of time and frequency people experience homelessness Strengthen regional coordination to maximize community impact FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
643
600
600
N/A
Shelter placements
224
200
200
N/A
Persons housed
148
120
100
N/A
Encampments cleared
56
30
30
N/A
Performance Measure Unduplicated homeless persons served
E-20
Related Strategic Plan Goal Quality of Life & Safety Quality of Life & Safety Quality of Life & Safety Quality of Life & Safety
COMMUNITY SERVICES | HOUSING & HOMELESS SERVICES: AFFORDABLE HOUSING PROGRAMS
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services Salaries & Wages $
87,524
$
82,627
$
111,025
$
122,194
Retirement Benefits
21,563
22,692
25,925
30,382
Health Insurance
15,553
17,168
18,686
19,446
Other Personnel Expenses
3,354
2,628
3,640
4,021
Personnel Services Subtotal
127,994
125,115
159,276
176,043
Professional & Contract Services
343,248
405,190
464,086
454,498
Supplies & Materials
246,726
235,907
261,493
199,984
Repair & Maintenance
-
-
-
-
Interdepartmental Charges
58,423
23,386
23,136
24,012
Other Operating Expenses
832,481
175,997
325,628
327,944
Capital Outlay
177,636
11,632
8,070
214,894
Operating Expenses Subtotal
1,658,514
852,112
1,082,413
1,221,332
977,227 $
1,241,689 $
1,397,375
Operating Expenses
TOTAL EXPENDITURES $
1,786,508
$
Full Time Positions
1.20
1.10
0.90
0.90
Hourly/FTE Positions
0.06
0.06
0.10
0.10
Account:
133, 134 806
Fund:
Special Revenue – Affordable Housing Trust Special Revenue – Tyler Court Apartments
ABOUT The Affordable Housing Trust Fund program is the city’s primary source of affordable housing funding for low-income households. The Affordable Housing Trust Fund collects fees generated from the Inclusionary Housing In-Lieu Fee and the sale of affordable housing credits that satisfy a developer’s inclusionary housing obligation as well as loan repayments from existing developments. With these funds, the city provides affordable housing programs, low income and homeless services support and offers financial assistance for residential developments that provide housing opportunities to lowincome households. The city also owns the Tyler Court Senior Apartments, a 75-unit senior apartment complex. This complex provides 100% affordable housing to senior households with incomes at 30% and 50% of the San Diego County area median incomes. The city has an agreement with a third party to manage the day-to-day operations of the apartment complex.
SERVICES • • • •
Administer the Housing Trust Fund in accordance with City Council Policy 90 Provide affordable housing funding for low-income households Inform developers, staff and the public on the Inclusionary Housing Ordinance by providing information on the requirements of the ordinance Negotiate and prepare affordable housing agreements and density bonus agreements
E-21
• •
Assist with the development of low-income affordable housing developments from concept to construction Oversee operations of city-owned Tyler Court Senior Apartments
RECENT ACCOMPLISHMENTS •
• • • •
Administered the Affordable Housing Resale Program, including the acquisition of four units and the resale of nine units, sold to qualified low-income buyers between July 2024 and June 2025 Re-sold six units to qualified low-income buyers in fiscal year 2025, with an additional three sales pending closing 117 affordable rental units funded with Housing Trust Fund funds came online in fiscal year 2025 Conducted a Request for Proposals for property management services for Tyler Court Senior Apartments complex Provided CDBG funding for needed capital repairs at Tyler Court
GOALS • • •
E-22
Identify new owner to acquire and improve Chestnut Apartments affordable housing complex Create fee schedules for monitoring units and processing fees for inclusionary and density bonus agreements, Housing Trust Fund applications and loans Create a policy handbook for residential developers with inclusionary housing or density bonus requirements to produce affordable housing to lower-income households
COMMUNITY SERVICES | HOUSING & HOMELESS SERVICES: FEDERALLY FUNDED COMMUNITY ASSISTANCE PROGRAMS
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services Salaries & Wages $
422,465
$
516,708
$
442,675
$
592,690
Retirement Benefits
104,701
114,228
107,622
117,692
Health Insurance
47,843
63,277
39,873
41,160
Other Personnel Expenses
17,974
15,447
15,852
17,495
Personnel Services Subtotal
592,983
709,660
606,022
769,037
Professional & Contract Services
76,036
129,171
99,958
102,390
Supplies & Materials
7,771
11,270
9,065
9,515
Repair & Maintenance
27
1,134
200
200
Interdepartmental Charges
254,641
223,378
239,007
40,960
Other Operating Expenses
13,067,800
15,709,563
15,884,867
17,164,897
Operating Expenses
Capital Outlay
-
Operating Expenses Subtotal
-
13,406,275
TOTAL EXPENDITURES $
13,999,258
-
16,074,516 $
16,784,176
-
16,233,097 $
16,839,119
17,317,962 $
18,086,999
Full Time Positions
6.53
5.00
5.00
5.00
Hourly/FTE Positions
0.73
0.73
0.50
0.50
Account:
190 391
Fund:
Special Revenue – Housing Choice Voucher Program Special Revenue – Community Development Block Grant
ABOUT The city receives federal grants that benefit the community and low-income households. Housing Services administers the federally funded Housing Choice Voucher rental assistance program, which provides monthly rental subsidies to very low-income households and the Community Development Block Grant program, which helps to develop viable urban communities through the provision of decent housing, a suitable living environment and expanded economic opportunities for lower-income persons.
SERVICES • • • •
Provide monthly rental subsidies to very low-income households and process new participants for the federally funded Housing Choice Voucher rental assistance program Ensure the Housing Choice Voucher program complies with federal regulations and guidelines, the Carlsbad Administrative Plan and the Public Housing Agency Plan Achieve and maintain a lease rate that fully utilizes Housing Choice Voucher program funding allocation Administer funds from the Community Development Block Grant program and monitor subrecipient grants for compliance
E-23
• • •
Provide staff support to the Housing Commission and the City Council in the selection process for activities to be included in the Community Development Block Grant program Prepare the Consolidated Annual Performance and Evaluation Report for public review and comment and final submission to the U.S. Department of Housing and Urban Development Partner with a non-profit legal advisor to provide fair housing and tenant-landlord dispute counseling and education
RECENT ACCOMPLISHMENTS • •
• •
Administered monthly rental assistance to an average of 632 very low and extremely lowincome households Received high performance agency rating through the Section 8 Management Assessment Program, which assesses if the Section 8 rental assistance program offers affordable rental units at the correct subsidy costs and establishes a system for HUD to measure a Housing Agency’s performance Funded two public service organizations and one fair housing provider, resulting in supportive services being provided to approximately 661 Carlsbad residents Created the fiscal year 2025-26 Annual Action Plan for the Community Development Block Grant program to allocate $562,903
GOALS • • • •
Implement cost saving measures to manage program within funds authorized Seek additional funding to serve more clients as opportunities arise Update the calendar year 2027 Public Housing Agency Annual Plan Reach high performance status for the Section 8 Management Assessment Program in calendar year 2026
Performance Measure Households receiving Rental Assistance Dollar value of CDBG funds awarded to community organizations
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
632
632
632
N/A
$84,435
$80,214
$76,203
N/A
Related Strategic Plan Goal Quality of Life & Safety Quality of Life & Safety
SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET The fiscal year 2026-27 budget includes a $1.3 million increase in the federally funded rental assistance program, consistent with need and anticipated revenue.
E-24
COMMUNITY SERVICES | HOUSING & HOMELESS SERVICES: SUCCESSOR AGENCY
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services Salaries & Wages $
-
$
-
$
-
$
-
Retirement Benefits
-
-
-
-
Health Insurance
-
-
-
-
Other Personnel Expenses
-
-
-
-
Personnel Services Subtotal
-
-
-
-
Professional & Contract Services
-
-
-
-
Supplies & Materials
-
-
-
-
Repair & Maintenance
-
-
-
-
Interdepartmental Charges
-
-
-
-
Other Operating Expenses
8,833
-
-
-
-
-
-
-
8,833
-
-
-
8,833 $
-
Operating Expenses
Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $
$
-
$
-
Full Time Positions
0.00
0.00
0.00
0.00
Hourly/FTE Positions
0.00
0.00
0.00
0.00
Account:
801, 811
Fund:
Trust Fund – Successor Agency
ABOUT The successor agency is responsible for preparing a recognized obligation payments schedule as detailed by the State of California’s Department of Finance, listing the enforceable obligations of the former redevelopment agency and their source of payment. This payment schedule is subject to approval by the countywide oversight board.
SERVICES • •
Maintain records of the redevelopment agency per retention policy Ensure payment of all debt obligations as approved by the oversight board
RECENT ACCOMPLISHMENTS •
Processed Recognized Obligations Payment Schedule for fiscal year 2025-26 for approval by the countywide oversight board
GOALS •
Maintain obligations of the former redevelopment agency
E-25
COMMUNITY SERVICES | LIBRARY & CULTURAL ARTS: SUMMARY
Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
6,016,089 $ 1,028,126 565,796 211,777 7,821,788
6,286,457 $ 1,185,376 628,175 229,873 8,329,881
7,106,570 $ 1,311,437 736,819 247,568 9,402,394
7,577,603 1,413,844 765,329 264,988 10,021,764
548,321 1,339,367 20,673 3,136,377 609,526 5,654,264
475,299 1,175,917 25,034 3,783,172 638,256 75,030 6,172,708
943,337 1,268,439 8,800 4,061,985 716,446 6,999,007
917,991 1,280,058 8,800 4,166,698 716,446 7,089,993
TOTAL EXPENDITURES $
13,476,052
$
14,502,589
$
16,401,401
$
17,111,757
General Fund $ Special Revenue Fund TOTAL FUNDING $
13,139,996 336,056 13,476,052
$
14,153,116 349,473 14,502,589
$
15,662,271 739,130 16,401,401
$
16,398,558 713,199 17,111,757
Full Time Positions Hourly/FTE Positions
53.00 53.42
$
51.00 53.77
$
51.00 55.85
$
51.00 55.84
Note: Beginning in 2024-25, the department reorganized its library services to a location-based model. Summary level figures in the following budget tables reflect this new structure.
LIBRARY & CULTURAL ARTS • •
•
•
E-26
Administration, Digital Initiatives & Special Projects Public Services (includes three locations at Dove Library, Cole Library and Library Learning Center) o Circulation Services o Adult & Teen Services o Children’s Services o Exploration HUB o Genealogy & Carlsbad History Services o Literacy & Bilingual Services Specialty Services o Collections & Technical Services o Strategic Partnerships & Outreach Cultural Arts
COMMUNITY SERVICES | LIBRARY & CULTURAL ARTS: ADMINISTRATION, DIGITAL INITIATIVES & SPECIAL PROJECTS
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
1,250,594 $ 249,906 121,788 36,818 1,659,106
1,161,255 $ 267,758 127,277 36,369 1,592,659
1,314,524 $ 320,800 147,769 48,587 1,831,680
1,398,042 347,014 131,592 51,938 1,928,586
46,707 194,895 20,713 806,542 602,124 1,670,981
46,256 157,277 11,686 567,579 623,055 75,030 1,480,883
63,500 266,310 4,455 828,732 716,446 1,879,443
33,500 271,660 4,455 695,653 716,446 1,721,714
TOTAL EXPENDITURES $
3,330,087 $
3,073,542 $
3,711,123 $
3,650,300
General Fund $ Special Revenue Fund TOTAL FUNDING $
3,220,571 $ 109,516 3,330,087 $
2,895,885 $ 177,657 3,073,542 $
3,462,123 $ 249,000 3,711,123 $
3,425,950 224,350 3,650,300
Full Time Positions Hourly/FTE Positions
10.00 2.92
Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
Account:
0014010 1454010 1454011
9.00 2.92
Fund:
10.00 2.48
10.00 2.33
General Special Revenue – Gifts & Bequests Special Revenue – Friends of the Library
ABOUT Library & Cultural Arts Administration provides management and leadership for the delivery of library and cultural arts programs and services; plans for the efficient use of resources and facilities; coordinates relations with local, regional, state and federal government agencies; and provides liaison services, resource assistance and technical guidance to Library Board of Trustees, Arts Commission, the Friends of the Carlsbad Library, the Carlsbad Library & Arts Foundation, the Carlsbad Friends of the Arts and the Serra Cooperative Library System.
SERVICES • •
Conduct strategic planning, set programs and services and monitor and respond to industry trends and best practices Utilize data to develop meaningful performance metrics that show impact in the community and adjust services based on community needs
E-27
• • • • •
Manage personnel and volunteer recruitment activities, develop and maintain policies and procedures and provide centralized training services for all staff and volunteers Develop, administer and monitor budgets, contracts, grants, purchasing and accounting processes Plan and develop special projects and technology solutions to effectively deliver services Work with the Library Board of Trustees and the Arts Commission to ensure the department is responsive to community needs as represented by trustees and commissioners Partner with support organizations including the Carlsbad Library & Arts Foundation, the Friends of the Carlsbad Library and Carlsbad Friends of the Arts to ensure endowments, donations and fundraising on behalf of the organization are used appropriately
RECENT ACCOMPLISHMENTS • • • •
Completed replacement of printers and copiers for patron use with user-focused features to enhance the patron experience Identified and contracted with a vendor to replace RFID hardware and software technology, which includes automated book handling and self-check machines Expanded centralized data collection on how patrons utilize programs and services, in order to make informed planning decisions regarding community needs Integrated department’s new guiding principles into daily workflows and services and incorporated them into employee feedback
GOALS •
• •
Complete installation of a $600,000 RFID hardware and software upgrade, which includes automated book handling and self-check machines, in partnership with the Information Technology Department Create data dashboards for timely information sharing about Library & Cultural Arts programs, services and impacts Formalize relationships with Friends of the Library and Carlsbad Library & Arts Foundation via Memorandums of Understanding FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
Number of contracts executed
118
120
118
N/A
Volunteer hours
7,614
7,850
7,700
N/A
Performance Measure
E-28
Related Strategic Plan Goal Organizational Excellence & Fiscal Health Community Character
COMMUNITY SERVICES | LIBRARY & CULTURAL ARTS: PUBLIC SERVICES
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
3,290,145 $ 509,667 272,425 125,002 4,197,239
3,499,135 $ 574,818 286,372 134,709 4,495,034
3,905,949 $ 621,481 306,770 130,076 4,964,276
4,120,441 655,322 373,659 138,037 5,287,459
3,314 118,712 1,386 1,912,705 5,449 2,041,566
23,145 98,977 935 2,666,131 5,378 2,794,566
5,575 39,475 1,345 2,557,585 2,603,980
5,575 44,475 1,345 2,872,308 2,923,703
TOTAL EXPENDITURES $
6,238,805 $
7,289,600 $
7,568,256 $
8,211,162
General Fund $ Special Revenue Fund TOTAL FUNDING $
6,238,805 $ 6,238,805 $
7,284,547 $ 5,053 7,289,600 $
7,535,256 $ 33,000 7,568,256 $
8,173,162 38,000 8,211,162
Full Time Positions Hourly/FTE Positions
28.00 41.08
26.00 40.97
26.00 41.41
Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
Account:
001402X 001403X 001405X 1454016
Fund:
26.00 41.56
General – Dove General – Cole General – Learning Center & Grants Special Revenue – Sutton Donation
ABOUT Public Services include all the library disciplines that program for and serve library patrons, including circulation, adult and teen, children’s and bilingual services. At Dove Library, this also includes the Exploration HUB. At Cole Library, this includes Genealogy and Carlsbad History. At the Library Learning Center, it includes adult and family literacy.
SERVICES •
•
Assist community members of all ages with information and literacy needs, provide instruction on resource use, perform research for the public, local business and government, provide educational, literacy, informational, cultural and recreational programs and advise readers to find books of interest Manage patron accounts and issuance of library cards, circulate and inventory print, electronic and audiovisual materials, answer collection-related questions, track reserved and overdue items and sort, organize and shelve all library materials
E-29
•
•
Provide reference and instructional assistance to community members researching their ancestry, preserve and make available Carlsbad history materials for public research and work closely with the North San Diego County Genealogical Society to provide educational genealogy resources and programs Deliver adult and family literacy services through one-on-one tutoring, reading instruction, English as a second language classes, Career Online High School and programs for adult learners supported by community volunteers and partners and a California State Library grant
RECENT ACCOMPLISHMENTS • •
•
•
Initiated a reimagined reading intervention program which pairs students who are reading below grade level with trained volunteers for one-on-one support Installed Percussion Play instruments in the Sculpture Garden, across the street from the Cole Library, designed to increase play among patrons, increase use of the garden, promote early literacy skills and create additional program space Hosted a seven-week series of financial literacy classes for adult literacy learners and their families to improve general understanding of money management, investing, retirement and estate planning Provided a weekly all-ages Chess Meet-Up at the Library Learning Center, averaging 15 participants per session, fostering intergenerational learning and play and leading to the development of a circulating chess set collection
GOALS • •
Continue to expand oral history holdings to include video interviews of community members reflecting on their memories of Carlsbad Expand homebound services book delivery program, utilizing community donations Identify a design firm, execute an agreement and complete a design to reimagine the first floor of the Library Learning Center to better serve patrons and the surrounding community FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
50,122
52,628
53,680
N/A
New library accounts
15,647
17,211
18,933
Patron computer sessions: mobile and inhouse
10% increase annually
202,483
212,607
223,237
5% Annually
Community Character
Library visits
563,323
573,023
575,250
N/A
Community Character
Performance Measure Library program participation
E-30
Related Strategic Plan Goal Community Character Community Character
COMMUNITY SERVICES | LIBRARY & CULTURAL ARTS: SPECIALTY SERVICES
2023-24 Actual Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
666,855 130,459 97,413 21,215 915,942
2024-25 Actual
$
804,501 197,658 122,207 29,057 1,153,423
2025-26 Budget
$
825,191 192,532 133,118 33,287 1,184,128
2026-27 Budget
$
883,540 207,657 127,945 35,709 1,254,851
2,743 971,284 (1,426) 194,436 1,167,037
6,286 857,296 12,360 223,645 277 1,099,864
95,200 907,723 284,814 1,287,737
35,200 897,723 255,897 1,188,820
TOTAL EXPENDITURES $
2,082,979 $
2,253,287 $
2,471,865 $
2,443,671
General Fund $ Special Revenue Fund TOTAL FUNDING $
2,011,316 $ 71,663 2,082,979 $
2,187,442 $ 65,845 2,253,287 $
2,260,700 $ 211,165 2,471,865 $
2,304,092 139,579 2,443,671
Full Time Positions Hourly/FTE Positions
Account:
7.00 3.08
0014040 0014041 1454014 1454015
9.00 3.19
Fund:
8.00 2.79
8.00 2.79
General – Collections & Technical Services General – Strategic Partnerships & Outreach Special Revenue – Benson Donation Special Revenue – Falkenstein Donation
ABOUT Specialty Services include all systemwide work that supports the programs and services of public facing divisions.
SERVICES • • •
Coordinate the selection of physical and electronic materials and manage collection development and maintenance for all library facilities Catalog and prepare library materials for public use, evaluate new content formats, devise new cataloging and processing procedures and evaluate usage patterns for materials Develop partnerships and outreach opportunities to promote community connections and improve services systemwide
E-31
RECENT ACCOMPLISHMENTS • • •
•
Satisfied the requirements of California Assembly Bill 1825, the California Freedom to Read Act, updating and making publicly accessible a collection development policy Increased the number of “Library of Things” items offered to patrons by adding ukuleles, chess sets and Launchpad literacy tablets Established a partnership with Housing & Homeless Services and Carlsbad Unified School District to provide library card registration for third grade students through the Explore More and CityStuff programs in compliance with California Senate Bill 321 Established a partnership with Economic Development to provide office hours with the Small Business Liaison at the Dove Library on a regular basis, providing increased access to business development resources for local entrepreneurs
GOALS •
•
• •
Conduct preliminary research and preparation to replace the current Integrated Library System, which manages a library's core operations, including cataloging, circulation, acquisitions and patron records Work with the Information Technology Department to identify possible products to meet staff and community needs, ensuring they are both technologically innovative and cost effective Redirect collection budget allocations away from formats that are losing relevancy and toward the most popular collection formats Identify new partnerships with city departments, local agencies and organizations that support and supplement library and cultural arts programs and services FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
36,832
32,000
32,000
N/A
Community Character
Number of items checked out (physical and digital)
1,330,566
1,463,623
1,609,985
Community Character
School visits (number of library tours and visits to schools)
10% increase annually
151
125
125
N/A
Community Character
Performance Measure Number of items added to the collection (physical and digital)
E-32
Related Strategic Plan Goal
COMMUNITY SERVICES | LIBRARY & CULTURAL ARTS: CULTURAL ARTS
2023-24 Actual Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal
808,495 138,094 74,170 28,742 1,049,501
Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
$
2024-25 Actual
2025-26 Budget
2026-27 Budget
821,566 $ 145,142 92,319 29,738 1,088,765
1,060,906 $ 176,624 149,162 35,618 1,422,310
1,175,580 203,851 132,133 39,304 1,550,868
779,062 54,931 3,000 390,854 1,227,847
843,716 66,200 3,000 342,840 1,255,756
495,557 54,476 222,694 1,953 774,680
399,612 62,367 53 325,817 9,546 797,395
TOTAL EXPENDITURES $
1,824,181 $
1,886,160 $
2,650,157 $
2,806,624
General Fund $ Special Revenue Fund TOTAL FUNDING $
1,669,304 $ 154,877 1,824,181 $
1,785,242 $ 100,918 1,886,160 $
2,404,192 $ 245,965 2,650,157 $
2,495,354 311,270 2,806,624
Full Time Positions Hourly/FTE Positions
8.00 6.35
Account:
001406X 1454013 148 175
7.00 6.70
Fund:
7.00 9.17
7.00 9.16
General Special Revenue – Gartner Fund Special Revenue – Special Events Special Revenue –Schulman Endowment
ABOUT Cultural Arts plans, promotes and carries out visual and performing arts programs, arts education activities, temporary and permanent public art and other offerings to make connections among artists, cultural organizations, community groups, businesses and the community. Guided by the Arts & Culture Master Plan, Cultural Arts sustains and promotes a thriving, diverse and creative city.
SERVICES • • • •
Present visual arts exhibitions and performing arts at the Ruby G. Schulman Auditorium, the William D. Cannon Art Gallery and throughout the city Create, document and maintain the city’s permanent and temporary public art collection Administer the Community Arts Grant program with support from the Arts Commission and participation of community arts stakeholders Offer educational programs for over 10,000 participants of all ages and abilities, including standards-based curriculum for first through fourth grades and open studios public events
E-33
• •
Present year-round performing arts series, including TGIF Concerts in the Parks and the Cinema Club film series Maintain partnerships with the Carlsbad Library & Arts Foundation and the Carlsbad Friends of the Arts
RECENT ACCOMPLISHMENTS • • • •
Secured three sponsorships and restored pop-up art and preconcert activities for the 2025 TGIF concert series Awarded $117,128 in community arts grants to 26 arts organizations and schools Finalized the design and fabrication plan for public art at Veterans Memorial Park in partnership with the selected artist team Offered three weeks of Club Pelican summer arts camp in partnership with the Batiquitos Lagoon Foundation
GOALS • •
•
•
Complete community engagement and bring forward design plans to City Council for public art at Chestnut I-5 Underpass and Barrio Traffic Circle projects Develop updated Guest Artist Residency and mobile art programs, creating quality interactions between artists and the community, as identified in the Arts & Culture Master Plan Priority Actions Explore new opportunities for temporary public art, including trail art to enhance the outdoor experience, and continued partnership with the Carlsbad Village Association to pair local artists with businesses, as directed by the Arts & Culture Master Plan Host a juried exhibition in the Cannon Art Gallery to feature regional artists
Performance Measure Community Arts Grants applicants TGIF Concerts in the Parks attendance
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
26
28
30
N/A
22,276
24,277
26,400
Safe capacity
Related Strategic Plan Goal Community Character Community Character
SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET Included in the fiscal year 2026-27 budget is a 10% increase in Community Arts Grants funding. Pursuant to the City Council approved Arts & Culture Master Plan, this fund amount should be increased by 10% every three years. The last update occurred in fiscal year 2022-23, and this increase aligns with the recommended schedule.
E-34
COMMUNITY SERVICES | PARKS & RECREATION: SUMMARY
Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
7,188,603 $ 1,220,371 718,403 381,983 9,509,360
6,985,585 $ 1,339,766 747,559 419,456 9,492,366
8,094,119 $ 1,511,846 934,627 431,983 10,972,575
8,964,765 1,660,458 1,005,602 484,062 12,114,887
8,529,309 1,000,984 478 2,430,044 11,181,455 955,033 24,097,303
8,263,707 1,010,752 2,403 2,952,854 11,786,470 807,878 24,824,064
9,491,330 1,075,287 1,609 2,954,156 12,080,956 788,000 26,391,338
9,400,244 1,104,592 1,529 2,723,989 12,856,347 1,215,000 27,301,701
TOTAL EXPENDITURES $
33,606,663
$
34,316,430
$
37,363,913
$
39,416,588
General Fund $ Enterprise Fund Special Revenue Fund TOTAL FUNDING $
21,252,800 10,187,428 2,166,435 33,606,663
$
22,076,084 10,141,011 2,099,335 34,316,430
$
24,241,322 10,589,000 2,533,591 37,363,913
$
25,132,348 11,540,000 2,744,240 39,416,588
Full Time Positions Hourly/FTE Positions
$
59.00 70.32
58.00 70.21
$
58.00 69.72
$
59.00 73.11
PARKS & RECREATION • • • • •
Administration Recreation Parks & Trail Maintenance Street Tree Maintenance & Median Maintenance The Crossings Golf Course
E-35
COMMUNITY SERVICES | PARKS & RECREATION: ADMINISTRATION
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services 1,333,389 $
1,432,509 $
1,582,454 $
1,669,618
Retirement Benefits
285,881
342,767
388,470
412,740
Health Insurance
127,023
159,744
197,952
180,420
Other Personnel Expenses
47,992
55,713
88,492
94,883
Personnel Services Subtotal
1,794,285
1,990,733
2,257,368
2,357,661
Professional & Contract Services
276,314
51,497
195,100
195,100
Supplies & Materials
33,554
48,386
48,840
48,840
Repair & Maintenance
22
115
200
200
Interdepartmental Charges
301,534
402,024
437,396
415,070
Other Operating Expenses
98,017
90,981
119,169
119,169
-
-
-
-
709,441
593,003
800,705
778,379
TOTAL EXPENDITURES $
2,503,726 $
2,583,736 $
3,058,073 $
3,136,040
Salaries & Wages $
Operating Expenses
Capital Outlay Operating Expenses Subtotal
General Fund $
2,449,921 $
2,557,867 $
2,976,873 $
3,054,840
Special Revenue Fund Total Funding $
53,805 2,503,726 $
25,869 2,583,736 $
81,200 3,058,073 $
81,200 3,136,040
Full Time Positions
10.45
11.45
11.80
11.45
Hourly/FTE Positions
0.98
0.98
1.47
1.47
Account:
0014510, 0014511 140 149
Fund:
General Special Revenue-Scholarships Special Revenue-Donations
ABOUT Parks & Recreation Administration provides department leadership, planning and administrative services to help develop and sustain high-quality parks and recreation programs.
SERVICES • • • • • • •
E-36
Evaluate and monitor business processes to improve operations, efficiency and performance Develop and monitor department’s operating budget and annual CIP budget Process and issue citywide special event permits Manage city-owned or controlled natural open space and trails system and review opportunities for land acquisition, easement planning and trails design/construction Oversee operating agreement for The Crossings at Carlsbad Municipal Golf Course Perform parks planning, design, administration and construction monitoring services Plan and monitor recreation programs in accordance with the Parks & Recreation Department Master Plan and in consideration of participant surveys and community input
• • •
Administer opportunity grants for low-income residents Provide support to and liaise with Parks & Recreation and Senior Commissions Implement strategic action items in the Parks & Recreation Department Master Plan
RECENT ACCOMPLISHMENTS • • • • • •
• •
•
Completed the CAPRA self-assessment to confirm the Parks & Recreation Department meets national standards for excellence in parks and recreation Checked plans and specifications of new private development projects that include trail construction, street trees and rights of way improvements Assisted in construction monitoring and administration for the Monroe Street Pool Renovation/Replacement project and the Beach Access Repairs project Obtained City Council approval of the plans and specifications to bid and award the construction contract for the Veterans Memorial Park project Oversaw completion of preliminary design of Robertson Ranch Park and advanced through the permitting and entitlement phases of the project Completed construction document preparation and permitting and obtained City Council approval of plans and specifications to bid the Pickleball Courts Construction project (four outdoor courts each at Calavera Hills Community Park and Stagecoach Community Park) Resumed the design of the Hosp Grove Improvements project Completed the design, bidding, contracting and construction of the Poinsettia Community Park Athletic Field Synthetic Turf Replacement project, which included the development of a new standard for the type of non-infilled synthetic turf to be used within the city’s inventory Assisted with development, testing and implementation of Cartegraph EAM program
GOALS • • • •
• • • • • • • •
Implement applicable parks, maintenance, programs, events and facilities strategies identified in the Parks & Recreation Department Master Plan Secure CAPRA accreditation, which confirms the Parks & Recreation Department meets nationally recognized standards for excellence, through a thorough review and hearing Present the Robertson Ranch Park final master plan before City Council for consideration Assist in the construction monitoring and administration for the Monroe Street Pool project, the Beach Access Repairs project, the Pickleball Courts project and the Veterans Memorial Park project Prepare the next Preserve Management Plan following the 2022–2026 cycle and establish the framework for the upcoming planning period. Complete the design, bidding, contracting and construction of the Aviara Community Park and the Alga Norte Community Park Athletic Fields Synthetic Turf Replacement project Initiate the design of the Leo Carrillo Ranch Historic Park Phase III-B project Complete the design of the Hosp Grove Park Improvements project Complete design and commence implementing Non-Functional Turf Replacement project Begin scoping of the Community Park Playgrounds Replacement project Commence the scoping of the Business Park Recreational Facility (Zone 5 Park) project Support two commissions in accomplishing the goals and tasks within each work plan
E-37
COMMUNITY SERVICES | PARKS & RECREATION: RECREATION
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services 3,946,152 $
3,731,718 $
4,388,584 $
4,944,484
Retirement Benefits
492,351
521,190
606,028
671,150
Health Insurance
289,256
288,109
406,758
439,666
Other Personnel Expenses
240,138
263,641
195,980
223,272
Personnel Services Subtotal
4,967,897
4,804,658
5,597,350
6,278,572
Professional & Contract Services
1,239,826
1,296,109
1,323,825
1,416,285
Supplies & Materials
662,596
627,065
727,913
742,162
Repair & Maintenance
297
1,637
1,029
829
Interdepartmental Charges
1,402,959
1,749,853
1,530,505
1,476,209
Other Operating Expenses
572,730
766,540
611,454
731,151
-
14,182
-
Salaries & Wages $
Operating Expenses
Capital Outlay Operating Expenses Subtotal
-
3,878,408
4,455,386
4,194,726
4,366,636
TOTAL EXPENDITURES $
8,846,305 $
9,260,044 $
9,792,076
$
10,645,208
General Fund $
8,826,679 $
9,246,642 $
9,758,576
$
10,611,708
Special Revenue Fund Total Funding $
19,626 8,846,305 $
13,402 9,260,044 $
33,500 9,792,076
$
33,500 10,645,208
Full Time Positions
24.30
23.25
23.50
24.50
Hourly/FTE Positions
64.71
64.60
63.86
67.25
Account:
0014520-44, 0014546-73 143
Fund:
General Special Revenue-Senior Program Donations
ABOUT The Parks & Recreation Department offers a wide variety of programming, including youth and adult sports, instructional classes, camps, aquatics, preschool and teen services and special events. The department operates and maintains community centers, parks and special use areas, featuring multiuse fields, tennis courts, dog parks, skate parks, playgrounds, two historic parks, a senior center, four multigenerational community centers and two aquatic centers.
SERVICES • • • • •
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Provide information, enrollment and registration services for parks, programs and facilities Collect and account for revenue to ensure efficient and cost-effective programming Plan, conduct and supervise recreation operations and programs at community centers, parks and other city facilities Process applications and issue park, facility and special event permits Coordinate and oversee effective use of athletic facilities for resident nonprofit sports organizations
• • • • • • •
Conduct cultural and historic park educational and interpretive programming Serve as a certification site for aquatics training programs through the American Red Cross Provide programs that promote health and wellness and essential childhood development Administer classes, seminars, transportation and professional services for seniors Manage intergenerational programs that foster cooperation and interaction Provide congregate meals and home delivered meals to seniors at little or no cost Recruit and manage volunteers supporting the Senior Center, Leo Carrillo Ranch and special events
RECENT ACCOMPLISHMENTS • • • • • • • • •
Assisted in the construction monitoring and administration for the Monroe Street Pool Renovation/Expansion Project Provided 884 historic and botanical public walking tours at Leo Carrillo Ranch Historic Park Served 25,316 meals through the Carlsbad Senior Center nutrition program Recertified 50 lifeguards and certified 30 lifeguard candidates to maintain surveillance and first responder services at pools Partnered with the Carlsbad Chamber of Commerce to host the annual Older & Bolder Expo, featuring over 45 vendors serving over 350 seniors and caregivers Welcomed approximately 35 local fourth-grade classes for the California History & Art Program at Leo Carrillo Ranch Historic Park Awarded $35,989 in opportunity grants to support community participation in recreation programs and memberships Updated study of benchmarked cities’ fees and implemented resulting fee adjustments for indoor and outdoor rental spaces and gymnasiums Processed 28,402 total registrations in recreation program offerings
GOALS • •
• • • •
Continue to support initiatives of the City of Carlsbad Age-Friendly Action Plan Continue to foster programs that promote health and wellness and essential childhood development, including intergenerational social events for seniors and teens Continue to augment staff with volunteers to build community and enhance fiscal stewardship Continue to implement the Parks & Recreation Department Master Plan actions related to services, programs, events and fees Reopen the renovated and expanded Monroe Street Pool to resume daily operations and add recreation programs and instructional classes Review updated study benchmarked cities’ fees and consider resulting fee adjustments for select community special events
Performance Measure Hours of volunteer services used Percentage execution of advertised recreation programs
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
16,541
13,870
14,000
85%
85%
85%
Benchmark At least 10,000 85%
Related Strategic Plan Goal Community Character Community Character
E-39
COMMUNITY SERVICES | PARKS & RECREATION: PARKS & TRAIL MAINTENANCE 2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services 1,493,642 $
1,423,326 $
1,613,874 $
1,754,816
Retirement Benefits
Salaries & Wages $
350,445
368,940
395,016
431,070
Health Insurance
259,777
261,270
282,342
292,456
Other Personnel Expenses
73,537
77,545
114,669
125,716
Personnel Services Subtotal
2,177,401
2,131,081
2,405,901
2,604,058
Professional & Contract Services
5,493,295
5,471,465
6,304,045
6,077,869
Supplies & Materials
281,122
300,950
265,922
271,978
Repair & Maintenance
138
640
380
500
Interdepartmental Charges
661,875
765,311
996,292
832,368
Other Operating Expenses
1,359,136
1,592,475
1,533,333
1,679,027
Capital Outlay
3,233
9,653
Operating Expenses Subtotal
7,798,799
8,140,494
Operating Expenses
TOTAL EXPENDITURES $
9,976,200
$
10,271,575
-
-
9,099,972 $
11,505,873
8,861,742 $
11,465,800
Full Time Positions
19.40
18.45
17.85
17.60
Hourly/FTE Positions
3.10
3.10
2.86
2.95
00146XX
Fund:
Account:
General
ABOUT
The Parks & Recreation Department maintains approximately 432 acres of developed or scheduled to be constructed community parks and special use areas, 51 miles of trails, 612 acres of habitat preserves, urban forests and undeveloped lands and landscaping for 58 acres of facilities.
SERVICES • • • • • • • • • •
E-40
Manage turf, irrigation, drainage and landscaping at parks, civic facilities, beach accesses and school athletic fields Inspect and maintain restroom facilities and picnic areas, tennis, pickleball and basketball courts, and soccer, softball, baseball and multi-purpose fields Repair parks structures, athletic field lighting, play equipment, playground safety surfacing, other park infrastructure and amenities Respond to tree service requests and provide storm and emergency assistance as necessary Refine, support and administer tree maintenance block pruning program Inspect and prune all city trees on a 4 to 4.5-year cycle and a 2 to 2.25-year supplemental cycle for high-maintenance trees in accordance with Community Forest Management Plan Maintain existing citywide trails system and coordinate development of new trails Manage the trails volunteer program Oversee maintenance and monitoring of preserves, urban forests and undeveloped lands Coordinate coastal activities with the California Department of Parks & Recreation, California Coastal Commission and lagoon foundations
RECENT ACCOMPLISHMENTS • • • • • • • • • • • • • • • • • •
Refined, supported and administered tree pruning block and supplemental pruning program Performed sports lighting maintenance at several community parks Repaired trail segments and installed erosion control measures at Lake Calavera Participated in administration of the janitorial services agreement for parks restrooms Executed a North Beach clean-up event with the Beach Preservation Commission Improved operational effectiveness of irrigation systems through various upgrades Resurfaced tennis courts at Carlsbad High School as part of the joint use agreement Completed turf renovations at Poinsettia Dog Park Transitioned to Cartegraph EAM inspection, reporting, work order and tracking software for contracted parks maintenance services Assumed ongoing maintenance of Stagecoach Community Garden Resurfaced tennis courts and basketball courts at La Costa Canyon Park Completed restroom floor renovation at Holiday Park and at Poinsettia Community Park Completed restroom painting at Chase Field, Hidden Canyon Park, Holiday Park, La Costa Canyon Park, Laguna Riviera Park, Skate Park, Pine Avenue and Poinsettia Community Parks Added over 500 total trees to the city’s inventory, including trees within parks and facilities landscapes, in accordance with the Community Forest Management Plan Completed enhanced fire mitigation project in the city’s urban forest areas Completed infield renovation on ballfields at Alga Norte, Aviara and Stagecoach Community Parks, Chase Fields and Aviara Oaks, La Costa Meadows and La Costa Heights Schools Facilitated seven trails volunteer events at Lake Calavera Preserve, Carlsbad Oaks North Business Park, Hosp Grove West, La Costa Glen, Hidden Canyon Park and The Crossings Commenced renovation of the John L. Simons Gazebo at Magee Park
GOALS • •
• • • • •
Refine, support and administer tree maintenance block and supplemental pruning program Repair priority trail segments and install erosion control measures at Lake Calavera Preserve and across the citywide trail system Participate in administration of the janitorial services agreement for parks restrooms Replace existing playground equipment and playground safety surfaces at Laguna Riviera Park, La Costa Canyon Park, Cadencia Park and at Stagecoach Community Park Replace tennis court, pickleball and basketball court lighting at Poinsettia Community Park Resurface pickleball courts at Poinsettia Community Park Complete the design, bidding, contracting and construction of the Aviara Community Park and the Alga Norte Community Park Athletic Fields Synthetic Turf Replacement project Apply clear coats on playground surfacing at select parks to enhance UV protection
Performance Measure Percentage of Green matter generated at city parks and city facilities reused Percentage of increase in recycling receptacles at parks and trails
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
93%
92%
95%
At least 95%
Sustainability & the Natural Environment
10%
9%
10%
10% annual increase
Sustainability & the Natural Environment
Benchmark
Related Strategic Plan Goal
E-41
COMMUNITY SERVICES | PARKS & RECREATION: STREET TREE & MEDIAN MAINTENANCE
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services Salaries & Wages $
415,420
$
398,032
$
509,207
$
595,847
Retirement Benefits
91,694
106,869
122,332
145,498
Health Insurance
42,347
38,436
47,575
93,060
Other Personnel Expenses
20,316
22,557
32,842
40,191
Personnel Services Subtotal
569,777
565,894
711,956
874,596
Professional & Contract Services
1,183,188
1,097,183
1,313,360
1,344,990
Supplies & Materials
23,712
34,351
32,612
41,612
Repair & Maintenance
21
11
Interdepartmental Charges
63,676
Other Operating Expenses
Operating Expenses
-
-
35,666
(10,037)
342
252,630
326,959
371,000
368,000
-
-
-
Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $
-
1,523,227
1,494,170
1,706,935
1,754,944
2,093,004 $
2,060,064 $
2,418,891 $
2,629,540
Full Time Positions
Account:
4.85
4.85
160 161
Fund:
4.85
5.45
Special Revenue Special Revenue
ABOUT The Street Tree Maintenance Assessment District provides maintenance to all city-accepted street trees within the public right-of-way, including specialized maintenance for street trees in the Downtown Carlsbad Village area. The Median Maintenance Assessment District provides landscape and irrigation maintenance for approximately 68 acres of median planters and nine acres of developed parkways and streetscapes, including the Downtown Carlsbad Village area.
SERVICES • • • • •
E-42
Inspect and prune all city trees on a 4 to 4.5-year cycle and a 2 to 2.25-year supplemental cycle for high maintenance trees Respond to tree service requests and provide storm and emergency assistance as necessary Refine, support, administer and inspect the tree maintenance block pruning program Plant street trees and median trees within vacancies created by prior removals in accordance with the Community Forest Management Plan Perform plan checks, conduct inspections and assume maintenance responsibility for street trees of development projects or ensure a street tree maintenance agreement is executed and recorded by the developer
•
•
Administer and oversee landscape and irrigation maintenance for all city median planters and developed parkways and streetscapes, including litter control, weed abatement, pruning, shrub and tree refurbishment and irrigation repairs Perform plan checks, conduct inspections and assume maintenance responsibility for medians and parkways constructed from city capital improvement projects and private development, or ensure a median and parkway maintenance agreement is executed and recorded by the developer
RECENT ACCOMPLISHMENTS • • • • • •
Refined, supported and administered tree maintenance block pruning and supplemental pruning program Transitioned to Cartegraph EAM inspection, reporting, work order and tracking software for contracted street trees and median maintenance services Completed first phase of replacement of trees, shrubs and ground covers in vacancies within rights of way and medians planters Completed irrigation controller upgrades in high priority areas Added over 500 total trees to the city’s inventory, including those within street rights-of-way and medians, in accordance with the Community Forest Management Plan Completed a tree canopy cover assessment and included the results in the reporting for the Climate Action Plan
GOALS • • •
Refine, support and administer tree maintenance block pruning and supplemental pruning program Complete next phase of replacement of trees, shrubs and ground covers in vacancies within rights of way and medians planters Complete irrigation controller upgrades in next highest priority areas
Performance Measure Number of street trees and median trees inspected for pruning Percentage of increase in recycling receptacles within Downtown Village and Northern Beach Streetscapes
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
5,525
5,500
5,500
At least 5,000
10%
12%
10%
10% annual increase
Benchmark
Related Strategic Plan Goal Sustainability & the Natural Environment Sustainability & the Natural Environment
E-43
COMMUNITY SERVICES | PARKS & RECREATION: THE CROSSINGS AT CARLSBAD MUNICIPAL GOLF COURSE
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
-
-
-
-
Personnel Services Salaries & Wages Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services $ Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
336,686 8,898,942 951,800 10,187,428
$
347,453 9,009,515 784,043 10,141,011
$
355,000 9,446,000 788,000 10,589,000
$
366,000 9,959,000 1,215,000 11,540,000
TOTAL EXPENDITURES $
10,187,428
$
10,141,011
$
10,589,000
$
11,540,000
Full Time Positions Hourly/FTE Positions
0.00 0.00
Account:
572
0.00 0.00
Fund:
0.00 0.00
0.00 0.00
Enterprise
ABOUT The Crossings at Carlsbad Municipal Golf Course is an 18-hole municipal golf course and event facility. Amenities for public use include a 6,835-yard championship golf course, a clubhouse complete with a golf shop, players’ lounge, sunset patio, banquet facilities, fireplace in dining room, full-service kitchen, outdoor deck with ocean views and three miles of hiking trails that connect to Veterans Memorial Park. JC Management, Inc. manages this facility via an agreement with the Carlsbad Public Financing Authority.
SERVICES • • • • • •
E-44
Administer management, maintenance and operations agreement with JC Management, Inc. Maintain and renovate golf and non-golf turf, landscaping, drainage, irrigation, cart paths, parking lots and site utilities systems Maintain and repair clubhouse, snack bar, restrooms and public areas available for patrons Oversee food and beverage services at the Players’ Lounge, Sunset Patio, Canyons Restaurant, beverage carts and snack bar Manage sales and marketing for golf and non-golf activities, special events, banquets, dining, weddings and other gatherings Train and oversee player assistants, greeters and starters servicing the course and clubhouse
RECENT ACCOMPLISHMENTS • • • • • • • • • • • • • • • • • •
Executed a Capital Improvement Plan with projects that have an anticipated return on investment or were needed for maintenance effectiveness or safety concerns Upgraded multiple pieces of kitchen equipment to improve efficiency and overall quality Ensured the pace of play was under five hours per round of golf, via staff educating patrons and expediting play, and met pace of play goal on at least 90% of rounds played Replaced damaged golf cart paths and fencing in specific, high-risk areas around property Replaced HVAC units for operations in the maintenance building and kitchen areas Selected and replaced tabletops in Canyons Restaurant Completed parking lot underplanting project along with other landscape features Completed bathroom renovations for snack bar and on-course restrooms Executed bunker renovations for Holes 2 & 3 on the golf course Maintained number of rounds played while also applying a nominal average rate increase Executed greens collars renovation project for hole numbers 10 & 14 Completed tee box leveling and re-sodding for hole numbers 1, 9 and 10 Upgraded Sunset Patio umbrellas for quality improvement and added guest enjoyment Completed hole number 18 tree planting Upgraded parking lot paving with crack fill, asphalt slurry-seal and up to date striping Finalized design for snack bar trellis addition Enhanced three driving range target greens for a higher quality experience Added autonomous ball-picker for driving range operation
GOALS • • • • • • • • • • •
Continue renovation for tee box leveling and upgrade of greens collars where needed for better course playability Install additional trees on the golf course Construct wind wall to extend from west patio to south side of Fireside Patio Continue bunker renovation for needed areas on the golf course Secure permit approvals for facility’s monument signage Expand clubhouse landscape enhancements and continue new plantings for removed trees Add additional seating to the Sunset Patio that includes high top tables and chairs Proceed with second phase of driving range target greens enhancement project Purchase new trash, recycling and organics receptacles for golf course to ensure continued SB1383 compliance Secure permits and complete construction of snack bar trellis cover addition Add satellite bar stations with updated back bars and portable bars for F&B operation
Performance Measure Percentage of golf rounds that met pacing goal Percentage increase in banquets and receptions hosted annually
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
90%
90%
94%
8%
15%
3%
Benchmark At least 90%
Related Strategic Plan Goal Community Character
2% annual increase
Community Character
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E-46
ADMINISTRATIVE SERVICES Administrative Services is a transparent, innovative and efficient support services branch that is accountable for the assets entrusted to it. The branch, comprised of finance, human resources, risk management and workers’ compensation, economic development, information technology and internal audit provides related services to city staff and the public as well as promotes a strong local economy. Our employees work together to add value to organizational processes, provide timely and reliable service to our community and business partners and find creative solutions to problems while protecting our assets. Key roles also include attracting and retaining a talented and engaged city workforce and ensuring the economic vitality of the city. Laura Rocha Deputy City Manager, Administrative Services 442-339-2430 laura.rocha@carlsbadca.gov
F-1
F-2
ADMINISTRATIVE SERVICES | ADMINISTRATION 2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services 416,267 $
446,815 $
547,187 $
578,965
Retirement Benefits
100,946
121,624
144,930
154,281 69,032
Salaries & Wages $ Health Insurance
40,985
51,191
66,339
Other Personnel Expenses
10,650
11,223
15,944
17,074
Personnel Services Subtotal
568,848
630,853
774,400
819,352
Professional & Contract Services
29,800
27,300
39,300
40,500
Supplies & Materials
5,969
5,646
7,350
7,350
Repair & Maintenance
-
-
50
50
Interdepartmental Charges
62,794
40,512
62,876
60,199
Other Operating Expenses
3,143
3,466
5,850
5,850
-
-
-
-
101,706
76,924
115,426
113,949
670,554 $
707,777 $
889,826 $
933,301
Operating Expenses
Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $ Full Time Positions
3.00
3.00
3.00
3.00
Hourly/FTE Positions
0.70
0.00
0.00
0.00
Account:
0011110
Fund:
General
ABOUT Administrative Services Administration provides financial, analytical, budget, strategic and administrative support to the branch and organization, aiming to enhance operational efficiency and promote evidence-based, well-managed government.
SERVICES •
• • •
Provide branch leadership and strategic support, long-range financial management and budget oversight, internal audit, contract administration, records management, economic development and support to the city’s business community Enhance transparency, accountability and integrity in operational areas using innovation and technology to streamline procedures and processes Support departments on process improvement and operational efficiency to further the city’s pursuit of being an evidence-based well managed government Identify key performance indicators with departments to gauge progress on the City Council's strategic plan and make better data-driven decisions
F-3
RECENT ACCOMPLISHMENTS • • • •
Recommended a strategic, balanced budget, that meets City Council-approved reserve level Prepared a risk assessment and an Internal Audit Plan for fiscal year 2025-26 Conducted audits of liability claims handling, procurement, police property and evidence storage, and transient occupancy taxes Launched a new open data portal, enhancing information sharing efficiency within the organization and with the public, thereby increasing transparency
GOALS • • • • • •
Enhance strategic direction and leadership across the branch to ensure all departments operate in alignment with the City Council’s strategic plan Ensure responsible, transparent, and forward-looking financial management that supports a well-managed, evidence-based government Ensure compliance, accessibility, and efficiency in records and contract administration Work with staff and city attorney’s office on revisions to the city’s TOT ordinance to clarify compliance requirements Continue to provide oversight and support of the Core Systems Modernization project Enhance transparency, accountability and integrity in operational areas using innovation and technology to streamline procedures and processes
Performance Measure Number of valueadded internal audit engagements
F-4
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
0
6
5
N/A
Related Strategic Plan Goal Organizational Excellence & Fiscal Health
ADMINISTRATIVE SERVICES | ECONOMIC DEVELOPMENT
Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
1,309,082 $ 287,470 $ 134,110 $ 32,590 $ 1,763,252
361,350 $ 79,524 35,711 8,259 484,844
344,090 $ 86,470 36,405 10,327 477,292
404,663 98,580 37,898 11,937 553,078
269,601 75,580 100,683 25,643 471,507
298,000 67,260 95,519 25,500 486,279
242,500 66,864 86,672 25,500 421,536 974,614
357,919 57,597 104,700 261,937 31,268 813,421
TOTAL EXPENDITURES $
2,576,673 $
956,351 $
963,571 $
Full Time Positions Hourly/FTE Positions
9.00 0.00
2.00 0.00
2.00 0.00
Account:
0011035
Fund:
2.00 0.00
General
ABOUT The Economic Development Department supports business growth, job creation and new investments to improve residents' economic well-being and quality of life, aligning with the City Council's goal of economic vitality.
SERVICES • • • • • •
Implement the Economic Development Strategic Plan to achieve Economic Vitality goal Conduct business expansion, attraction and retention activities Support Carlsbad’s key industries, small businesses, entrepreneurs and startups Position Carlsbad as a desirable place to conduct business and grow business operations Foster a healthy talent pipeline for Carlsbad’s workforce and key industries Provide economic data and analysis to help inform decision-making
RECENT ACCOMPLISHMENTS • •
Implemented a total of 55 Economic Development Strategic Plan actions Developed Small Business Liaison Office Hours to provide direct connection to businesses through our Library & Carlsbad Village Association
F-5
•
• • • • •
Launched a monthly small business workshop series in partnership with the Carlsbad Chamber of Commerce to provide topical information on city processes or industry engagement Connected with over 200 small businesses through the Small Business Liaison program Organized and hosted San Diego Startup Week for fourth consecutive year, establishing Carlsbad as a great place for entrepreneurs Expanded the Carlsbad Talent Hub, a talent recruiting tool for Carlsbad businesses and residents Grew monthly industry engagement events to include 60-80 participants at each event Implemented a quarterly refresh schedule to ensure the City’s Economic Dashboard remains current for key indicators
GOALS •
• •
•
•
Continue the implementation of the Economic Development Strategic Plan, progressing on at least 61 cumulative actions in pursuit of Economic Vitality, an increase from 55 actions in fiscal year 2025-26 Enhance support services for city businesses, supporting at least 150 business expansion attraction and retention, or BEAR, projects, consistent with last year’s output Establish and expand industry advisory groups to engage a broad cross-section of Carlsbad’s business sectors, gaining insight into current conditions and emerging challenges across the local economy Advance workforce development initiatives for employers to connect residents, local school districts, and higher education institutions with career opportunities through coordinated talent pipeline development Develop a site selector tool for small businesses to easily identify potential properties for expansion or establishing a new business
Performance Measure Number of companies reached through BEAR activities Number of Economic Development Strategic Plan Actions in Progress
F-6
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
Related Strategic Plan Goal
50
200
150
50
Economic Vitality
40
55
61
N/A
Economic Vitality
ADMINISTRATIVE SERVICES | FINANCE 2023-24 Actual
2024-25 Actual
2026-27 Budget
2025-26 Budget
Personnel Services Salaries & Wages $
$
2,480,743
$
2,604,848
2,861,527
$
3,136,229
Retirement Benefits
544,307
632,770
715,388
786,509
Health Insurance
390,660
416,903
473,144
505,783
Other Personnel Expenses
69,403
80,532
99,249
106,692
Personnel Services Subtotal
3,485,113
3,735,053
4,149,308
4,535,213
Professional & Contract Services
999,847
1,051,818
994,575
998,660
Supplies & Materials
244,225
216,642
264,321
259,205
Operating Expenses
Repair & Maintenance
68,818
21,473
23,600
26,600
Interdepartmental Charges
587,661
671,685
692,207
711,667
Other Operating Expenses
23,872
40,160
54,395
52,326
Capital Outlay
11,183
-
2,600
Operating Expenses Subtotal
1,935,606
TOTAL EXPENDITURES $
2,001,778
5,420,719
$
-
2,031,698
5,736,831
$
6,181,006
2,048,458 $
6,583,671
Full Time Positions
26.00
26.00
27.00
27.00
Hourly/FTE Positions
3.00
3.00
3.00
3.00
Account:
0011310
Fund:
General
ABOUT As a steward of the city’s assets and liabilities, the Finance Department sets and implements a strategic financial management plan and provides information in an effective and timely manner, ensuring the city makes sound financial decisions.
SERVICES • • • • • • • •
Oversee the city budget and long-range financial planning Monitor the economy closely and continuously update the city’s Ten-Year Financial Forecast to ensure the General Fund remains in balance throughout the year Present quarterly financial updates to the City Council Provide general accounting and reporting Support treasury administration Manage debt, cashiering, purchasing, utility billing and business licensing Process payroll and payments Manage receiving, messenger and mail services
F-7
RECENT ACCOMPLISHMENTS • •
• • • •
Completed fiscal year 2024-25 Annual Comprehensive Financial Report Completed the mid-year budget review process, which is a collaborative effort with all city departments to forecast changes to revenues and expenditures compared to their current budgets based on observed trends Maintained a balanced operating budget in fiscal year 2025-26 and submitted a balanced budget to the City Council for fiscal year 2026-27 Completed comprehensive master fee schedule updates to ensure fees charged to the public are in line with city policy and inflation levels Finalized comprehensive cost of service study to evaluate city fee levels and structures and comparisons with other cities that will be completed in the upcoming fiscal year Assisted with program-specific external audits including Public Works and the Utilities and Police departments
GOALS • • • • •
•
Continue to monitor the economy and its impact to the Ten-Year Forecast to ensure the General Fund remains in balance Continue implementation of Core System Modernization project Continue to improve procedures to mitigate risk through additional controls in payables process Continue supporting program-specific audit requests for funding the city receives Maintain a General Fund Reserve Ratio of 40% of General Fund annual operating expenditures, in compliance with City Council Policy 74 and demonstrating the department’s efforts to achieve the city’s 2023-2027 strategic plan goal of organizational excellence & fiscal health Maintain a credit rating of AAA, demonstrating the department’s efforts to achieve the city’s 2023-2027 strategic plan goal of organizational excellence & fiscal health FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
General Fund Reserve Ratio
59%
61%
58%
At least 40%
Credit Rating
AAA
AAA
AAA
AAA
Performance Measure
F-8
Benchmark
Related Strategic Plan Goal Organizational Excellence & Fiscal Health Organizational Excellence & Fiscal Health
ADMINISTRATIVE SERVICES | HUMAN RESOURCES: SUMMARY
2023-24 Actual Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
2,339,143 495,365 211,721 136,572 3,182,801
2024-25 Actual
$
7,652,871 62,769 428,749 15,004,470 23,148,859
2,252,688 529,664 211,646 111,661 3,105,659
2025-26 Budget
$
5,526,562 46,332 24,107 673,391 19,604,825 25,875,217
2,547,667 624,493 259,477 79,596 3,511,233
2026-27 Budget
$
6,510,000 76,155 605,015 7,562,400 3,000 14,756,570
2,813,566 676,013 271,207 87,655 3,848,441
6,372,894 76,155 568,877 7,930,400 14,948,326
TOTAL EXPENDITURES $
26,331,660
$
28,980,876
$
18,267,803
$
18,796,767
General Fund $ Internal Service Fund TOTAL FUNDING $
4,354,491 21,977,169 26,331,660
$
4,639,596 24,341,280 28,980,876
$
5,600,534 12,667,269 18,267,803
$
5,515,758 13,281,009 18,796,767
Full Time Positions Hourly/FTE Positions
18.00 2.20
$
17.00 2.20
$
18.00 2.40
$
18.00 2.40
HUMAN RESOURCES • • •
Human Resources Risk Management Workers’ Compensation
F-9
ADMINISTRATIVE SERVICES | HUMAN RESOURCES: HUMAN RESOURCES 2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services Salaries & Wages $
1,881,487
$
1,870,467
$
2,074,700
$
2,221,174
Retirement Benefits
392,844
414,840
497,715
524,623
Health Insurance
152,267
159,261
207,959
223,152
Other Personnel Expenses
48,529
50,264
63,711
68,558
Personnel Services Subtotal
2,475,127
2,494,832
2,844,085
3,037,507
Professional & Contract Services
959,767
1,125,185
1,632,000
1,398,000
Supplies & Materials
60,597
43,202
71,155
71,155
Repair & Maintenance
-
24,107
-
-
Interdepartmental Charges
379,315
574,167
504,594
460,396
Other Operating Expenses
479,685
378,103
545,700
548,700
-
-
3,000
Operating Expenses
Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $
1,879,364
2,144,764
4,354,491
$
-
2,756,449
4,639,596
$
5,600,534
2,478,251 $
5,515,758
Full Time Positions
14.00
13.00
14.00
14.00
Hourly/FTE Positions
2.20
2.20
2.40
2.40
Account:
00115XX
Fund:
General
ABOUT The Human Resources Department supports all city employees so they can deliver the highest level of service to the community. The department fosters a high‑performance work culture aligned with the vision established by the City Council. Our primary objectives are to ensure compliance with federal and state requirements to minimize risk and liability and to implement process improvements that help the city remain resilient while providing exceptional public service.
SERVICES •
• • • • • • • • • F-10
Lead recruitment, onboarding and retention, including the internship and Department of Defense SkillBridge programs Conduct background checks and workforce forecasting Maintain job classifications, perform job analyses, conduct market studies and review internal equity, to maintain a competitive compensation strategy and position control Conduct workplace investigations and conflict resolution Provide employees with wellness initiatives and return-to-work support Administer the city’s memorandums of understanding and support labor negotiations Oversee employee engagement programs and efforts to maintain an optimal workforce Oversee leadership development and mandatory training compliance Develop inclusion, equity and diversity initiatives Administer employee benefits, leave programs and workplace accommodations
• •
Ensure compliance with federal, state and local mandates, and violence prevention Manage 600 - 1,000 city volunteers contributing approximately 55,000 hours annually
RECENT ACCOMPLISHMENTS • • • • • • • • • • •
•
•
• •
Provided over 350 in-person and virtual self-paced development courses Filled over 60% of vacant full-time positions by internal promotions in calendar year 2025 Created or updated approximately 20 employment-related policies to maintain compliance Advertised job openings on over 600 nationwide websites to achieve a high level of inclusivity Added Firefighter classification back into Fire Department roles while phasing out EMT position, allowing for a career path directly to Paramedic Firefighter and to fill vacancies faster Processed over 9,000 job applications to fill over 300 vacant positions in calendar year 2025 12 employees graduated from the Master of Public Administration program through our partnership with National University Converted paper/pencil recruitment testing to online processes and added in practical testing processes with input from hiring departments Consistently maintained vacancy rates under 10% to ensure effective public service delivery Ensured compliance with new legislative requirements, including AB 339 & 2561 and SB 294 Strengthened employee relations by proactively addressing workplace concerns, conducting fair and thorough investigations and partnering with leadership to implement effective resolutions that reduced recurring issues and enhanced team morale Advised and coached managers on performance management, conflict resolution and progressive discipline, fostering a culture of accountability, consistency and positive employee experience across departments Coordinated participation in the Supervisor and Management Academy through The Centre for Organization Effectiveness, supporting leadership development and equipping managers with practical skills to promote engagement and high-performing teams Negotiated a three-year agreement with CFA and implemented contract enhancements, including cost-of-living adjustments Negotiated a three-year agreement with CCEA and implemented contract changes, including COLAs, equity adjustments and stand-by pay modifications
GOALS • • • •
Maximize recruitment outreach and continue to offer a comprehensive and competitive employee benefit program to attract and retain top talent in a competitive environment Collaborate with North Zone fire agencies for effective use of shared resources during fire department promotional testing processes Maintain vacancy rate of less than 7% for police/fire positions to keep the community safe Continue to conduct compensation studies to ensure equity, competitiveness and retention
Performance Measure
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
Voluntary turnover rate
7%
7%
7%
10% or less
Legally mandated employee training compliance rate
100%
100%
100%
100%
Related Strategic Plan Goal Organizational Excellence & Fiscal Health Organizational Excellence & Fiscal Health
F-11
ADMINISTRATIVE SERVICES | HUMAN RESOURCES: RISK MANAGEMENT
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
376,431
Personnel Services 301,039 $
233,625 $
275,002 $
Retirement Benefits
Salaries & Wages $
66,408
71,630
73,714
93,188
Health Insurance
35,936
36,666
28,292
23,859
Other Personnel Expenses
55,127
38,886
9,398
12,015
Personnel Services Subtotal
458,510
380,807
386,406
505,493
Professional & Contract Services
5,889,128
3,624,362
3,849,000
3,791,894
Supplies & Materials
2,172
3,130
5,000
5,000
Repair & Maintenance
-
-
-
-
Interdepartmental Charges
32,619
70,122
72,248
65,998
Other Operating Expenses
6,881,674
4,216,972
1,129,700
1,129,700
Operating Expenses
Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $
-
-
12,805,593 13,264,103
-
7,914,586 $
8,295,393
-
5,055,948 $
5,442,354
4,992,592 $
5,498,085
Full Time Positions
2.50
2.50
2.50
2.50
Hourly/FTE Positions
0.00
0.00
0.00
0.00
Account:
6121930
Fund:
Internal Service
ABOUT Risk Management administers funding for the city’s self‑insured and insured liability programs, helping protect the city’s financial interests. The division works closely with the City Attorney’s Office and outside legal counsel to monitor, manage and resolve litigated claims. Risk Management also pursues recovery of monetary losses resulting from third‑party negligence that damages city property. The risk manager serves as the city’s Americans with Disabilities Act Coordinator and supports ongoing efforts to maintain compliance with Title II of the ADA. In addition, Risk Management oversees the city’s safety compliance program.
SERVICES • • • • • • • F-12
Manage all liability claims filed against the city Coordinate with the City Attorney’s Office on risk‑related litigation Oversee loss recovery and employee loss prevention efforts Manage the citywide Safety Program, including injury prevention and Cal/OSHA compliance Oversee subrogation for third‑party damage to city property Ensure compliance with insurance requirements for all independent contractors Review and advise on city‑purchased insurance policies
RECENT ACCOMPLISHMENTS • • • • • • •
Conducted safety audits at city facilities and work sites to maintain safe conditions for the public and employees Managed over 120 active liability and property claims without a Third-Party Administrator, resulting in an estimated $80,000 annual cost avoidance Implemented alternative methods for delivering safety related trainings to minimize operational disruptions, increase trainer and trainee interaction and improve training quality Improved assessments, such as audiogram and respirator fit testing, to keep those employees who work in hazardous conditions safe Implemented claims tracking application (GovQA) to increase efficiency Worked with departments to conduct Safety Surveys to enhance safety compliance Obtained city property loss recoveries resulting in an average annual cost recovery of $100,000
GOALS • • • •
Enhance the safety program to include up-to-date trainings to ensure a safe work environment Facilitate additional safety committee meetings in which all departments participate and collaborate towards the goal of maintaining a safe working environment Continue developing the division’s Standard Operating Procedures to maintain compliance with updates to CalOSHA regulations Reduce dependence on external trainers and vendors by conducting more employee safety training internally, resulting in cost avoidance and a customized training experience FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
New claims that are closed
81%
80%
80%
At least 80%
Recovered damages to city property
69%
75%
75%
At least 75%
Performance Measure
Benchmark
Related Strategic Plan Goal Organizational Excellence & Fiscal Health Organizational Excellence & Fiscal Health
F-13
ADMINISTRATIVE SERVICES | HUMAN RESOURCES: WORKERS’ COMPENSATION
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
215,961
Personnel Services 156,617 $
148,596 $
197,965 $
Retirement Benefits
Salaries & Wages $
36,113
43,194
53,064
58,202
Health Insurance
23,518
15,719
23,226
24,196
Other Personnel Expenses
32,916
22,511
6,487
7,082
Personnel Services Subtotal
249,164
230,020
280,742
305,441
1,029,000
1,183,000
Operating Expenses Professional & Contract Services
803,976
777,015
Supplies & Materials
-
-
-
-
Repair & Maintenance
-
-
-
-
Interdepartmental Charges
16,815
29,102
28,173
42,483
Other Operating Expenses
7,643,111
15,009,750
5,887,000
6,252,000
Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $
-
-
8,463,902 8,713,066
-
15,815,867 $
16,045,887
-
6,944,173 $
7,224,915
7,477,483 $
7,782,924
Full Time Positions
1.50
1.50
1.50
1.50
Hourly/FTE Positions
0.00
0.00
0.00
0.00
Account:
6111520
Fund:
Internal Service
ABOUT This internal service fund is used to support the work-related injury and illness program.
SERVICES • • • •
Cooperate with injured employees and physicians to ensure timely medical treatment Coordinate employees’ return to work, including light duty assignments Work directly with injured employees to settle outstanding claims without litigation Provide training, analytics and recommendations to department supervisors to prevent work-related injuries
RECENT ACCOMPLISHMENTS • • •
F-14
Resolved and closed 97% of claims without litigation Enhanced the workers’ compensation claims auditing process and trend analysis to identify patterns and implement additional safety measures to prevent claims Conducted weekly incident reviews to identify trends in work related accidents and injuries and implement measures to reduce employee injury and workers’ compensation claims costs
GOALS • • •
• •
Ensure injured employees receive appropriate medical treatment in a timely manner to reach maximum improvement and return to work as soon as reasonably possible Continue working collaboratively with injured employees to settle claims without litigation Minimize the number of lost days of work due to work-related injuries and illnesses by continuing to provide outstanding service and minimize overtime costs due to employee absences Enhance the workers’ compensation advocacy plan and use of data analytics to achieve the desired outcomes of this program, including injury and illness prevention Share workers’ compensation data with respective departmental management regularly to guide the decision-making process and provide feedback that supports program goals FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
Average lost days of work per claim
50
85
85
< 100
Litigated claims as percentage of open claims
3%
5%
5%
< 20%
Performance Measure
Related Strategic Plan Goal Organizational Excellence & Fiscal Health Organizational Excellence & Fiscal Health
SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET
Increased budget to cover anticipated higher costs for Third Party Administrator and medical-related expenses for the coming year.
F-15
ADMINISTRATIVE SERVICES | INFORMATION TECHNOLOGY
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services Salaries & Wages $ Retirement Benefits
4,981,393
$
1,157,644
6,122,789
$
1,512,937
6,279,469
$
1,646,783
6,811,471 1,782,612
Health Insurance
595,925
716,282
782,802
851,050
Other Personnel Expenses
784,261
580,019
220,872
244,123
Personnel Services Subtotal
7,519,223
8,932,027
8,929,926
9,689,256
Professional & Contract Services
722,749
1,063,335
1,262,234
509,700
Supplies & Materials
188,329
169,115
127,497
172,601 8,015,010
Operating Expenses
Repair & Maintenance
5,223,871
5,176,213
6,442,978
Interdepartmental Charges
73,864
125,499
113,336
105,983
Other Operating Expenses
1,531,915
1,572,179
1,599,477
1,518,503
Capital Outlay
1,226,496
889,025
1,393,602
688,311
Operating Expenses Subtotal
8,967,224
8,995,366
10,939,124
11,010,108
TOTAL EXPENDITURES $
16,486,447
$
17,927,393
$
19,869,050
$
20,699,364
Full Time Positions
43.00
48.00
48.00
48.00
Hourly/FTE Positions
0.50
0.50
0.50
0.50
Account:
640, 641
Fund:
Internal Service
ABOUT The Information Technology Department supports and continuously improves essential technology solutions and infrastructure for enabling day-to-day city operations. IT provides leadership to deliver secure, reliable and cost-effective solutions aligned with City Council priorities and city initiatives.
SERVICES • • • • • • • • •
F-16
Administer and oversee the department’s use of resources and formation of priorities Support operations through implementation and support of technology infrastructure Implement and support enterprise software applications and systems Oversee Data Services including GIS for internal and external data needs Manage technology and system implementations and upgrades Facilitate business system specialist support to ensure technology meets business needs Deliver client services through a service desk, PC support and strategic initiatives Support public safety’s unique technology requirements for the Police and Fire departments Oversee information technology security policies and practices and threat investigations
RECENT ACCOMPLISHMENTS • • • • •
• • • •
• • •
Completed the outdoor wireless expansion at Alga Norte Community Park Deployed a fully redundant network infrastructure across core and mission critical city facilities to strengthen resilience and uptime Upgraded entire city to latest geospatial map development software Launched multiple public digital products including climate action plan dashboard and fire standards of cover digital publication. Installed new fiber connectivity and network equipment upgrades at Alga Norte Community Park, Dove Library, the Schulman Auditorium, and Rancho Santa Fe Road to improve performance and operational reliability Migrated to Microsoft G5 licensing, enabling advanced security features Installed satellite internet at the Emergency Operations Center to ensure reliable connectivity during outages and emergency events Upgraded the city's firewall infrastructure and the Police Department’s VPN solution Completed projects identified in the Strategic Digital Transformation Investment Program including Citywide Fleet GPS deployment, Construction Waste Management, Enterprise Asset Management, Risk Management, Fire Station Alerting Equipment replacement and Record Management Enhancements Completed multiple audio-visual projects include the Schulman Auditorium, Council Chamber and the Emergency Operations Center Provided responsive IT support as evidenced by completing over 8,840 ServiceNow tickets, keeping city systems running smoothly and addressing technology needs quickly Modernized technology through deployment of more than 209 mobile devices and 383 computers, ensuring staff have the tools needed to provide excellent service to the public
GOALS • • • • • • • • •
Move the city’s virtual server infrastructure to a modern platform that prepares the environment for future cloud adoption and hybrid IT capabilities Implement a 10-gigabit wireless bridge to provide high-speed redundancy for the city’s fiber network Upgrade the SCADA network and deploy a secure cellular Private APN to strengthen reliability and security for critical control systems Upgrade approximately 80 wireless access points to newer standards Complete implementation of Core System Modernization project to enhance and modernize internal systems Complete Strategic Digital Transformation Investment Program projects such as Facility Monitoring, PCI Compliance and Library RFID equipment replacement Complete implementation of upgraded Computer Aided dispatch system to enhance the delivery of public safety services Begin implementation of a modernized Police Case Records Management system Further modernization of IT infrastructure for projects supporting improved cybersecurity and data analytics, such as extending the Carlsbad Digital Information Network and the development of the cybersecurity program
Performance Measure Percentage of ticket incidents considered critical
CY 2024 Actual
CY 2025 Actual
.0005%
0.10%
Benchmark < 2.5% of industry standard
Related Strategic Plan Goal Organizational Excellence & Fiscal Health
F-17
ADMINISTRATIVE SERVICES | MISCELLANEOUS NON-DEPARTMENTAL
2024-25 Actual
2023-24 Actual Miscellaneous Non-Departmental Expenditures Community Contributions & Railroad Trenching $ COVID-19 Related 24,163 Dues and Subscriptions 82,099 Legal Services 194,716 Opioid Settlement Funds Other Miscellaneous Expenditures 57,690 Personnel Related 117,265 Professional Services 37,458 Property Tax and Other Administration 734,435 Vacancy Savings Miscellaneous Non-Departmental Subtotal 1,247,826 General Fund Transfers Transfer to General Capital Construction Fund Transfer to Infrastructure Replacement Fund Transfer to Strategic Digital Transformation Investment Program Transfer to LLD #1 (Medians & Trees) Transfer to Storm Water Program Transfer to Fleet Replacement Transfer to Risk Management Transfer to Workers' Compensation Fund General Fund Transfers Subtotal City Council Contingencies Contingencies
11,600,000 4,200,000 4,200,000 1,570,000 340,000 10,200,000 1,300,000 33,410,000
-
$
55,487 85,813 666,137 111,605 120,462 37,756 787,459 1,864,719
18,579,226 4,779,226 4,779,226 1,500,000 350,000 560,000 7,000,000 37,547,678
-
2025-26 Budget $
2026-27 Budget
$ 90,000 94,000 1,000,000 800,000 103,688 254,430 150,000 150,000 2,000,000 1,500,000 39,000 41,000 800,000 800,000 (2,000,000) (2,000,000) 2,182,688 1,639,430
8,882,966 8,882,966 2,433,187 1,500,000 2,000,000 23,699,119
4,990,362 4,990,362 4,990,362 1,200,000 5,000,000 21,171,086
500,000
500,000
TOTAL EXPENDITURES $ 34,657,826
$ 39,412,397
$ 26,381,807
$ 23,310,516
General Fund $ 34,657,826 Special Revenue TOTAL FUNDING $ 34,657,826
$ 39,412,397 $ 39,412,397
$ 26,278,119 103,688 $ 26,381,807
$ 23,056,086 254,430 $ 23,310,516
Account:
00190XX 128XXXX
Fund:
General Special Revenue - Opioid Settlement Fund
ABOUT
The miscellaneous non-departmental budget accounts for all General Fund transfers to other funds, City Council contingencies and other miscellaneous General Fund expenses, such as outside legal counsel, personnel vacancy savings, citywide final vacation pay and citywide dues and subscriptions. The Carlsbad Strategic Plan includes a strategic objective to work with the San Diego Association of Governments and the North County Transit District to prioritize, determine costs and work with state and federal representatives to seek funding for preliminary design and technical studies for lowering the railroad tracks in the Village. The fiscal year 2023-24 budget appropriated $5.22 million from the General Fund Reserve and directed staff to request that the San Diego Association of Governments, or SANDAG, submit a fiscal year 2023 Railroad Crossing Elimination Grant Program application for the project as the lead agency. On June 25, 2024, the City Council adopted a resolution authorizing the City Manager to execute a memorandum of understanding between the City of Carlsbad, SANDAG and the North County Transit District regarding the pursuit of grant funding for the project.
F-18
COVID-19 related expenditures associated with the previous COVID-19 Economic Recovery and Revitalization Initiative were last incurred in fiscal year 2023-24. The city first received funds from the Opioid Settlement and Distributor Settlement funds in fiscal year 2022-23 and has since built these distributions in its annual budget. These funds come from the California Opioid Settlements to be utilized for opioid remediation activities. The personnel related expenditures pertain to certain centrally budgeted items in the General Fund, such as those related to CalPERS, and final vacation and sick pay to employees when they terminate employment with the city. The city began budgeting for vacancy savings, or anticipated personnel savings over the course of the fiscal year, in fiscal year 2022-23. Continuing to account for $2 million in vacancy savings allows for budgeted personnel costs to align with actual personnel costs more closely in the General Fund. Prior year actuals for personnel vacancy savings will consistently remain at zero, assuming actual savings reach the budgeted total. In accordance with City Council Policy 91, the city targets adopting an annual budget that includes a transfer from the General Fund to one or more of the city's long-term capital funds. The long-term capital funds include the General Capital Construction Fund, the Infrastructure Replacement Fund and the Technology Investment Capital Fund. In fiscal years 2023-24, 2024-25, the city budgeted for and made additional contributions to the General Capital Construction Fund to ensure that future projects have adequate funding. The additional respective transfers of $7.4 million and $13.8 million were funded from estimated General Fund surplus. In fiscal year 2025-26, the city budgeted for and made increased transfers of $8.9 million to both the General Capital Construction Fund and the Infrastructure Replacement Fund while budgeting $2.4 million in transfers to the Technology Investment Capital Fund to help ensure that funding levels align with projected future project expenses. In fiscal year 2026-27, the city budgeted for equal contributions across all three capital funds. The City Council authorized a $560,000 one-time transfer to the city’s Fleet Replacement Fund in fiscal year 2024-25 to support historical chargebacks related to a Police Department vehicle purchase. The City Council also authorized several one-time transfers to the city’s Risk Management and Workers’ Compensation funds. In fiscal year 2023-24, the City Council approved total transfers of $10.2 million to the Risk Management Fund and $1.3 million to the Workers’ Compensation Fund, and in fiscal year 2024-25, another $7 million to the Workers’ Compensation Fund. These transfers were required for several reasons, as spending in both funds exceeded estimates due to several factors, including the volume of claims opened and settled, an increase in personnel, growing costs for legal defense and experts, and to increase to the program’s reserve to achieve a funded status of approximately 85%. This level of funding is consistent with actuarial standards and in accordance with recommendations from the city’s external auditors. The city has also prioritized additional transfers to the Storm Water Program, beyond reimbursement of the General Fund portion of Storm Water expenses, budgeting transfers of $2 million in fiscal year 2025-26 and $5 million in fiscal year 2026-27. On an ongoing basis, future Storm Water expenses are expected to far outpace future revenues. These one-time transfers support the fund’s ongoing operations. City Council contingency budget has been set at $500,000 annually in recent years. Prior year actuals remain at zero, as the City Council distributes budget throughout the year to departments citywide as approved by Council action. The City Council approved contingency spending in fiscal years 2023-24 through 2025-26 of $8,000, $7,666, and $27,446, respectively. The City Council distributed budget for items like community spirit grants, winning teams grants, and other directives.
F-19
F-20
POLICY & LEADERSHIP The City of Carlsbad follows a council-manager form of government, where elected City Council members provide direction on the policies and regulations that govern the operations of the city. The Policy & Leadership branch includes the following areas: • • • • • •
Office of the City Council (elected) Office of the City Treasurer (elected) Office of the City Manager Office of the City Attorney Office of the City Clerk (elected) Communication & Engagement
The City Council appoints the City Manager, City Attorney and members of the city’s boards, commissions and committees. The Office of the City Manager handles administration and oversight of the city organization, including hiring the city workforce, supervising city departments and ensuring the City Council’s policy priorities are met. Geoff Patnoe City Manager 442-339-2820 manager@carlsbadca.gov
G-1
G-2
POLICY & LEADERSHIP | OFFICE OF THE CITY COUNCIL
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
280,288 $
282,871
Personnel Services Salaries & Wages $
265,997
$
272,161
$
Retirement Benefits
39,298
37,863
39,294
38,577
Health Insurance
61,873
87,645
116,429
100,530
Other Personnel Expenses
6,268
5,782
3,674
3,687
Personnel Services Subtotal
373,436
403,451
439,685
425,665
Operating Expenses Professional & Contract Services
8,273
1,165
26,400
26,400
Supplies & Materials
7,823
7,637
23,822
23,822
-
-
-
-
Interdepartmental Charges
Repair & Maintenance
102,968
119,137
97,987
130,445
Other Operating Expenses
28,158
34,289
53,578
53,578
-
-
-
-
147,222
162,228
201,787
234,245
641,472 $
659,910
Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $
520,658
$
565,679
$
Full Time Positions
2.00
1.00
1.00
1.00
Hourly/FTE Positions
0.00
0.00
0.00
0.00
Account:
0010110
Fund:
General
ABOUT As the legislative body of the city, the Office of the City Council establishes the policies and regulations under which the city operates.
SERVICES The City Council, as a legislative body, approves direction, policies and regulations that govern the operations of the city. The City Council appoints residents to serve on various boards and commissions and may serve as city representatives on regional boards such as SANDAG, North County Transit District and the San Diego County Water Authority.
RECENT ACCOMPLISHMENTS • •
Approved the final engineering and design of the traffic calming measures that include sewer and water improvements of the Village and Barrio Traffic Circles project Adopted an ordinance that adopts the county e-bike safety pilot program, including an under-12 age restriction with education-based enforcement, gives police a limited, safetyfocused seizure option for e-bikes operated by minors engaging in high-risk conduct that creates an immediate or substantial threat to public safety and codifies that parents are responsible for knowingly allowing their children to commit violations
G-3
•
• • • •
•
• •
Approved and completed additional street improvements to enhance safety and reduce traffic congestion near Kelly Elementary School that included creating a new pick-up/dropoff queue lane to improve access to the school and reduce traffic back-ups and restriping the existing median on Kelly Drive in front of Kelly Elementary School to discourage left turns from the parking lot Conversion of red curb to grey curb resulting in 44 additional parking spaces in the Village and Barrio with 22 located within the Barrio Awarded construction contract for more than 100 new lights to be installed in the Barrio Awarded a construction contract for the construction of the 93.7-acre Veterans Memorial Park project Approved the formation of the Ad-Hoc City Council Veterans Memorial Park Veterans Recognition Subcommittee to solicit input from veterans, non-profit veteran organizations and residents on concepts to honor and recognize veterans at the future Veterans Memorial Park Approved installation of wildfire monitoring cameras on city-owned properties, with the first installation site selected being at the Carlsbad Municipal Water District’s La Costa High Reservoir property in the La Costa Ridge neighborhood Awarded a construction contract for the Poinsettia Community Park Synthetic Turf Replacement project Adopted three ordinances that amended the Carlsbad Municipal Code to authorize the establishment of seven all-way stop controls
GOALS The City Council is focused on advancing the goals identified in the city’s 5-Year Strategic Plan. Work is centered around the following five goal themes: • Economic vitality • Sustainability and the natural environment • Community character • Quality of life and safety • Organizational excellence and fiscal health
G-4
POLICY & LEADERSHIP | OFFICE OF THE CITY TREASURER
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services 134,250 $
143,913
Retirement Benefits
Salaries & Wages $
122,501 26,152
$
119,140 28,426
$
31,311
33,906
Health Insurance
5,086
18,423
30,986
32,119
Other Personnel Expenses
3,154
3,343
3,902
4,264
Personnel Services Subtotal
156,893
169,332
200,449
214,202
Professional & Contract Services
18,194
23,357
55,870
106,025
Supplies & Materials
1,056
791
380
425
Repair & Maintenance
-
-
-
-
Interdepartmental Charges
29,569
48,667
54,049
53,240
Other Operating Expenses
775
4,449
10,200
10,000
-
-
-
-
49,594
77,264
120,499
169,690
320,948 $
383,892
Operating Expenses
Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $
206,487
$
246,596
$
Full Time Positions
1.00
1.00
1.00
1.00
Hourly/FTE Positions
0.00
0.00
0.00
0.00
Account:
0010310
Fund:
General
ABOUT The Office of the City Treasurer provides cash and investment management services which adhere to the city’s Investment Policy and meet the changing investment needs of the city to optimize investment returns, consistent with maintaining safety of principal, ensuring sufficient liquidity and return on investment.
SERVICES •
Manage reporting and oversight of the city’s cash and investments
RECENT ACCOMPLISHMENTS • • •
Maintained a competitive yet prudent investment yield Grew book value of investment portfolio in fiscal year 2025 by 2.57% over prior year Increased cash income earned by the investment portfolio in fiscal year 2025 by 31.13% over prior year
GOALS • •
Maintain a stable investment portfolio to ensure the preservation of capital in the overall portfolio Anticipate and meet the changing investment needs of the city to remain sufficiently liquid to enable the city to meet all operating requirements G-5
• • • •
Manage the investment portfolio to realize a yield on investments as a source of additional revenue Use innovative solutions to fund modern and secure cash handling solutions even in uncertain times Maintain a maximum modified duration of less than 2.2%, which is a measure of investment risk Maintain short-term investment maturity value (investments maturing within one year) at no less than the equivalent of two-thirds of the current operating budget; this ensures sufficient liquidity to meet the city’s operating needs
Performance Measure Average Yield of investment portfolio
G-6
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
2.88%
3.710%
3.25%
N/A
Related Strategic Plan Goal Organizational Excellence & Fiscal Health
POLICY & LEADERSHIP | OFFICE OF THE CITY MANAGER
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services 1,234,648 $
1,167,173 $
1,104,196
Retirement Benefits
Salaries & Wages $
291,961
334,726
318,053
$
1,211,397 349,007
Health Insurance
120,347
117,625
123,858
150,833
Other Personnel Expenses
29,316
28,372
31,735
34,860
Personnel Services Subtotal
1,676,272
1,647,896
1,577,842
1,746,097
Professional & Contract Services
281,692
232,101
249,350
324,350
Supplies & Materials
33,672
35,750
46,161
46,161
Repair & Maintenance
-
-
-
-
Interdepartmental Charges
125,466
148,499
146,602
139,228
Other Operating Expenses
16,733
34,445
50,935
50,935
-
-
-
-
457,563
450,795
493,048
560,674
2,133,835 $
2,098,691 $
2,070,890
Operating Expenses
Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $
$
2,306,771
Full Time Positions
7.00
6.00
6.00
6.00
Hourly/FTE Positions
0.00
0.00
0.00
0.00
Account:
0011010
Fund:
General
ABOUT The Office of the City Manager is dedicated to continuous improvement and organizational excellence that fosters the well-being of a high-performing organization that delivers impactful results to further the public good.
SERVICES The City Manager’s Office provides City Council support, administrative leadership of city operations, policy development management, monitors and manages legislative affairs, and provides general management of public communication and engagement.
RECENT ACCOMPLISHMENTS • • • • •
Provided an update to City Council on the status of the goals and objectives in the City Council 5-Year Strategic Plan Ensured timely follow up of all City Council and constituent services requests Managed a robust local, state and federal intergovernmental affairs program Collaborated extensively with neighboring cities and regional organizations to better share best practices for improved cooperation and efficiencies in government Tracked approximately 900 separate pieces of legislation and issued statements of support or opposition on 25 pieces of legislation to help ensure Carlsbad’s interests are represented in state and federal actions G-7
•
Submitted fiscal year 2026 community project requests to the city’s congressional delegation that resulted in Rep. Mike Levin including $1,000,000 for the City’s Carlsbad Village Railroad Double Track Trench project
GOALS • • •
G-8
Ensure the most efficient and effective provision of city services while adapting to changing financial conditions Enhance community engagement and transparency efforts to foster authentic civic engagement with residents, organizations and businesses Increase intergovernmental collaboration and legislative advocacy with local, state and federal governments to further the City Council adopted legislative platform and advance priority projects
POLICY & LEADERSHIP | OFFICE OF THE CITY ATTORNEY
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services 1,414,951 $
1,389,535 $
1,506,153
Retirement Benefits
Salaries & Wages $
344,765
378,311
418,581
$
1,683,207 462,081
Health Insurance
119,586
119,016
145,317
135,365
Other Personnel Expenses
33,566
34,543
43,714
48,706
Personnel Services Subtotal
1,912,868
1,921,405
2,113,765
2,329,359
Operating Expenses Professional & Contract Services
2,923
3,470
3,500
3,500
Supplies & Materials
19,205
35,641
25,057
35,957
-
-
-
-
Interdepartmental Charges
Repair & Maintenance
141,008
181,959
205,979
197,367
Other Operating Expenses
14,719
13,666
18,000
18,000
Capital Outlay
1,627
-
-
-
Operating Expenses Subtotal
179,482
234,736
252,536
254,824
2,092,350 $
2,156,141 $
2,366,301
TOTAL EXPENDITURES $
$
2,584,183
Full Time Positions
8.00
8.00
8.00
8.00
Hourly/FTE Positions
0.00
0.00
0.00
0.00
Account:
0011210
Fund:
General
ABOUT The City Attorney is appointed by the Mayor and City Council. The City Attorney’s Office consists of six attorneys and two legal support staff members. The office primarily practices preventive law, which seeks to minimize the risk of litigation or regulatory violations by anticipating and preventing legal problems. Preventive law focuses on the attorney’s role as adviser and negotiator and emphasizes planning, counseling, collaboration and problem-solving. The office also prosecutes criminal violations of the Carlsbad Municipal Code.
SERVICES • • • • • • • •
Provide objective legal counsel to the City Council, city staff, and city boards, commissions and subcommittees Attend City Council meetings, Planning Commission meetings, City Council subcommittee meetings and, as needed, meetings of city boards and commissions Prepare and review ordinances and resolutions Negotiate, prepare and approve the form of contracts and legal instruments Represent the city in court proceedings and before regulatory and legislative agencies Manage the city’s litigation and provide periodic reports to the City Council Enforce city laws and regulations Obtain gun violence restraining orders for the Police Department and workplace violence restraining orders for the Human Resources Department, as needed G-9
RECENT ACCOMPLISHMENTS • •
•
• • •
•
•
• • •
•
Assisted the City Treasurer with a comprehensive review of the city’s Investment Policy Assisted with multiple Carlsbad Municipal Code amendments, including ordinances relating to procurement efficiency, e-bicycle safety, accessory dwelling unit and junior accessory dwelling unit development, Housing Element sites rezoning, updates to the California Building and Fire Codes and the addition of the California Wildland-Urban Interface Code Performed a comprehensive review of and assisted with an ordinance updating Title 2 of the Carlsbad Municipal Water District Code to ensure compliance with applicable laws and regulations and current practices Assisted with negotiating and updating the Memoranda of Understanding with the Carlsbad Firefighters’ Association and the Carlsbad City Employees’ Association Assisted with updating the Unrepresented Employees’ Compensation and Benefits Plan Assisted with local emergency declarations and emergency procurements related to a sinkhole at Carlsbad Village Drive and El Camino Real, storm drain infrastructure in the coastal bluffs near Carlsbad Boulevard and Solamar Drive, and the Kelly Drive Channel Assisted with multiple community development projects, including The Roosevelt Site Development Plan, Inns of America Conversion and Baron’s Market Sign Standards Modification projects Assisted with multiple public works improvement projects, including the Veterans Memorial Park and Faraday Avenue Improvements, Village & Barrio Traffic Circles and Barrio Traffic Calming, Barrio Street Lighting, Harding Community Center Refurbishment, El Camino Real Widening and Poinsettia Park Synthetic Turf Replacement projects Assisted with multiple Information Technology projects, including the Police Case Records Management System, Microsoft Enterprise and ESRI Enterprise projects Presented information to the City Council regarding state laws prohibiting local involvement in federal immigration enforcement activities Prepared or assisted with additions and revisions to the Carlsbad Municipal Code, including prohibiting smoking in multi-unit residences and strengthening regulations related to massage businesses and TGIF Concert in the Park security Worked with the Legislative Subcommittee, the Intergovernmental Affairs Director and the city’s legislative consultant to pass state legislation to permit closed session briefings on cybersecurity matters
GOALS • •
• •
G-10
Uphold and model the highest standards of integrity and public service values Provide objective and timely legal counsel to all elected and appointed city officials and all branches to assist in minimizing litigation and regulatory risk and in making sound decisions to carry out the city’s mission, vision, values and strategic plan Support the City Manager in strategic operations related to ongoing and significant programs and projects Continue efforts to update the Carlsbad Municipal Code, the Carlsbad Municipal Water District Code, City Council policies, City Manager Administrative Orders and department policies to ensure compliance with applicable laws and regulations
POLICY AND LEADERSHIP| OFFICE OF THE CITY CLERK
2023-24 Actual
2024-25 Actual
2025-26 Budget
2026-27 Budget
Personnel Services Salaries & Wages $ Retirement Benefits
605,808
$
138,597
764,378 $
836,578
140,175
551,876
$
185,906
206,995 127,622
Health Insurance
98,010
95,460
145,201
Other Personnel Expenses
17,473
17,112
24,821
28,504
Personnel Services Subtotal
859,888
804,623
1,120,306
1,199,699
Operating Expenses Professional & Contract Services
25,366
32,420
71,112
69,712
Supplies & Materials
34,344
45,187
48,175
48,175
-
-
-
-
Interdepartmental Charges
Repair & Maintenance
182,459
198,134
201,184
194,371
Other Operating Expenses
10,665
181,392
52,345
318,745
-
-
-
-
252,834
457,133
372,816
631,003
1,112,722 $
1,261,756 $
1,493,122
Capital Outlay Operating Expenses Subtotal TOTAL EXPENDITURES $
$
1,830,702
Full Time Positions
7.00
6.00
7.00
7.00
Hourly/FTE Positions
1.00
1.00
1.00
1.00
Account:
0010210, 0011610
Fund:
General
ABOUT The Office of the City Clerk serves as a vital link between city government and those it serves, providing access to public records, publishing City Council agendas, preparing minutes and serving as the city’s election official.
SERVICES • • • • • • • • • • • • •
Prepare City Council agendas Prepare minutes Complete legal noticing and publishing Maintain Fair Political Practices Commission filings Maintain Carlsbad Municipal Code Maintain, preserve and provide access to all legislative documents Administer elections Notarize documents Provide proof of life certifications Ensure public records are archived, preserved and accessible to the public Respond to Public Records Act Requests Process subpoenas, summons and claims Develop and implement records management and document management programs G-11
• • • •
Process recorded documents and bond releases Provide document research assistance to staff and the public Conduct training and provide support to various department personnel designated to scan documents into the city’s records repository Manage and coordinate destruction of records past retention
RECENT ACCOMPLISHMENTS • • • • • • •
Responded to 959 Public Records Requests in 2025 Processed 223 City Council inquiries Processed 614 financial disclosure documents Added 10,007 records to the city’s public facing document repository Began implementation of SB 707 Brown Act requirements Implemented the digital records destruction approval process Completed upload of legacy paper building permits to Laserfiche
GOALS • • • • • • • • • • • • • • •
G-12
Obtain a digital posting board to push out all agendas electronically throughout the city for greater accessibility in conformance with the Brown Act Implement the agenda management workflow in Laserfiche Automate the conforming process as a workflow in Laserfiche Continue implementing SB707 requirements for open meetings and public participation Conduct the 2026 General Municipal Election Evaluate feasibility of offering passport application acceptance services Conduct citywide training on the Brown Act, Public Records Requests and staff report preparation Implement SB827 Fiscal and Financial Management training Continue to systematically update the Carlsbad Municipal Code and City Council Policies Provide greater access to public records on the city website Update the Records Retention Schedule and Records Management Program Train city staff on use of the Records Retention Schedule Update the Conflict of Interest Code Collaborate with various departments on further digitizing their documents Continue to conduct departmental records audits
POLICY & LEADERSHIP | COMMUNICATION & ENGAGEMENT
Personnel Services Salaries & Wages $ Retirement Benefits Health Insurance Other Personnel Expenses Personnel Services Subtotal Operating Expenses Professional & Contract Services Supplies & Materials Repair & Maintenance Interdepartmental Charges Other Operating Expenses Capital Outlay Operating Expenses Subtotal
2023-24 Actual
2024-25 Actual
2025-26 Budget
1,051,415 $ 228,510 159,932 28,259 1,468,116
1,003,369 $ 250,355 168,996 27,275 1,449,995
1,057,300 264,555 181,855 34,558 1,538,268
319,201 78,105 80,577 260,980 209,006 947,869
413,600 80,774 84,606 269,388 24,136 872,504
520,795 80,177 208,342 215,177 1,024,491
2026-27 Budget
$
1,203,919 287,206 167,026 37,907 1,696,058
318,600 70,474 88,836 236,339 18,836 733,085
TOTAL EXPENDITURES $
2,492,607 $
2,397,864 $
2,410,772
$
2,429,143
General Fund $ Special Revenue Fund Total Funding $
1,983,038 $ 509,569 2,492,607 $
1,927,770 $ 470,094 2,397,864 $
2,119,816 290,956 2,410,772
$
2,144,557 284,586 2,429,143
Full Time Positions Hourly/FTE Positions
Account:
9.00 1.50
0011012, 0011016 1381010
9.00 1.00
Fund:
8.00 1.00
$
8.00 1.96
General Special Revenue – Local Cable Infrastructure
ABOUT The city’s communication and engagement program fosters open, two-way communication with the community about city issues, programs and services, leading to a more responsive and transparent government.
SERVICES • • • • •
Develop community engagement programs that facilitate early and meaningful public input in city government decision making Promote awareness of city issues, programs, services and initiatives Write and edit staff reports and responses to constituent inquiries to ensure information presented is clear, complete and accurate Produce video recordings and livestream all City Council meetings and meetings of boards, commissions and committees Manage a dedicated 24/7 government cable TV channel
G-13
RECENT ACCOMPLISHMENTS •
• •
• • • •
Effectively reached and engaged community members on key city issues including the annual budget, new e-bike safety laws, Veterans Memorial Park and Chestnut I-5 Underpass public art projects, traffic calming options for Celinda Drive and Barrio traffic calming, infrastructure construction and lighting improvements Communicated real-time updates on a variety of platforms and outlets to the community during two local emergencies in January 2026 and a tsunami advisory in July 2025 Communicated to residents about 20 construction projects, including the Monroe Street Pool renovation project, new beach stairs and sidewalk widening project, El Camino Real widening project and the Terramar sidewalk and street improvements project Created and distributed over 35 editions of the city’s e-newsletter, garnering over 321,000 views Produced and distributed over 300 news releases, articles and stories about city services and programs Strengthened the city’s digital reach across six social media platforms, with more than 5.1M+ views of city content across all channels Recognized with 4 regional awards for excellence in community engagement programs, community relations, video production and publications
GOALS The Communication & Engagement Department’s performance measures support all five goals in the City Council’s 5-Year Strategic Plan by promoting awareness of each and opportunities for the community to become engaged in individual initiatives. Performance Measure Engagement opportunities meeting participation goals City news updates Communication initiated (all channels)
G-14
FY 2025 Actual
FY 2026 Estimated
FY 2027 Projected
Benchmark
Related Strategic Plan Goal
9
8
6
≥ 3/year
All
9
6
6
≥ 3/week
All
11
12
10
≥ 5/week
All
S TRA TE GIC D I GI TA L TRAN SFORMATI ON I NVES TMENT PRO GRAM The Strategic Digital Transformation Investment Program, or SDTIP, is a comprehensive approach to planning for and funding digital transformation efforts throughout the city. Several documents inform this program, including the City Council-approved Connected Carlsbad: An Inclusive City Innovation Roadmap, the Internal Digital Information Network Action Plan and the Information Technology Strategy, which are complemented by a five-year projected roadmap of digital transformation investments. The SDTIP is the strategic plan for technology and digital transformation combined with project descriptions, costs, funding sources and timelines. The purpose of this program is to provide for an annual investment strategy, not a commitment to spending, that outlines a five-year expenditure plan for future digital transformation and technology projects and the corresponding revenues necessary to pay for them.
Connected Carlsbad: An Inclusive City Innovation Roadmap In January 2019, city staff presented Connected Carlsbad: An Inclusive City Innovation Roadmap, designed to provide a high-level, organized guide outlining the principles that matter to the city in creating a more connected community. This roadmap and its associated action plan were based on a combination of items, including: • City Council approved projects, • existing city documents, • previous Information Technology assessments and interviews with departments, and • a global scan of other cities and best practices that have emerged from leading smart city thinkers and Carlsbad-specific community engagement. The SDTIP expands on the Connected Carlsbad Roadmap to include a strategy for evaluating and prioritizing projects and a five-year investment roadmap that includes estimated costs and timelines. This new investment program continues to be organized into the five primary goal areas approved by City Council in Connected Carlsbad, listed below. • Pursue Communitywide Digital Transformation focuses on the foundational elements, including connectivity, up-to-date hardware and software, and a robust security strategy while providing an aspirational vision for the future. • Build Capacity for Data-Driven Government focuses on the policies, procedures and staffing necessary for the city to fully capture the value of emerging models of data analytics. • Foster a Vibrant Civic Engagement Culture leverages the first two goals by adopting a human-centered approach. It ensures that as the city uses data and technology, it respects people's privacy and fosters a culture where residents, organizations, and businesses are actively engaged and invested in the community and its future. • Enhance Accessibility and Transparency recognizes that open government and approaching problem-solving from an accessibility perspective leads to better outcomes for all. • Promote Safety and Sustainability through Connectivity leads to understanding the interconnected nature of our communities that can achieve environmental, mobility and sustainability goals when approached in a cross-departmental and community informed manner.
H-1
Once the City Council adopts the proposed SDTIP, projects receive an appropriation that authorizes spending in the amount specified for the adopted fiscal year only. Estimated budget information is shown for a five-year period to provide the most comprehensive information about known future projects. Spending authority in future years is not granted until adoption of the annual proposed SDTIP budget associated with each year.
I NVES TIN G IN DI GI TA L TRA NSFORMA TION As the city continues to grow and develop, the use of technology has also grown exponentially over the last two decades. The SDTIP outlines the financial resources needed to ensure that the technology infrastructure is in place to enable the city to provide services to the community. Prudent financial planning will ensure that ongoing funding for investment in technology is available.
PRO JEC T EVA LU ATION Making decisions on technology implementations is a challenging and complex task. The challenging nature of these decisions is exacerbated by the expanding reach of technology and the increasingly interdisciplinary nature of emerging technologies. A major component of the SDTIP is the establishment of a cross-departmental approach to technology leadership to evaluate, prioritize, budget for and adopt digital transformation efforts. A new administrative order has been developed that provides a collaborative forum for key staff to validate and prioritize technology implementations. This approach also provides a structured venue to explore how particular configurations of technology implementation may positively or negatively affect others within the organization. The process to evaluate digital transformation initiatives is ongoing and meetings may be held on a monthly, bimonthly or quarterly basis depending on the need. Several factors are considered when putting together projects for the five-year program. All digital transformation and technology projects shall be consistent with: Public Health and Safety Technology Standards and Strategic Plans
Environmental Review
City Mission, Vision and Organizational Values
Strategic Digital Transformation Investment Program
Funding Availability
City Council Goals Governing and Policy Documents
H-2
Community Values
Criteria Proposed projects are evaluated and prioritized by a set of criteria that include: Alignment with City Council goals and IT strategic plans, architecture, security and technology standards, including legislative and regulatory mandates, and administrative goals Coordination of IT investments across the enterprise to avoid duplication, maximizing the return on investment and increasing efficiency Effective articulation of the business case including valid operational benefits of the project Accuracy and reasonableness of cost and benefit estimates Consideration of potential project risks and identification of appropriate means to manage those risks Adherence to standard project management practices Capacity of staffing resources to implement the project As the SDTIP is implemented throughout the year, staff continually re-evaluate projects’ scopes, costs and schedules to responsibly and cost-effectively manage city resources.
H-3
S TRA TE GIC D I GI TA L TRAN SFORMATI ON I NVES TMENT PRO GRAM PRO JE C TS The following contains information about the projects in the SDTIP. Full project pages are provided for the major new projects being requested for fiscal year 2026-27 and prior approved major projects that have changes in funding needs or project requirements. The estimated annual operational and replacement cost increases shown on each project page represent a departmental budgetary increase—generally to the Information Technology Department and its internal service citywide chargeback—separate from Capital Technology Fund activity. Projects for fiscal year 2026-27 and beyond are included in the graphs and tables provided but will not have full project pages until the first year of funding. Projects with no changes and projects that have been completed or removed going into fiscal year 2026-27 are listed below. Full details of these projects can be found in the appropriate prior fiscal year budget documents based on when they were new or had changes.
Fiscal Year 2021-22 Continuing Projects – No Changes The following project was approved during the fiscal year 2021-22 SDTIP and has no changes to its funding needs or project requirements and is still in process. This project is included in the totals of the various graphs and charts shown in the SDTIP. • Online Permitting/Electronic Reviews, also known as E-Reviews
Fiscal Year 2022-23 Continuing Projects – No Changes The following projects were approved during the fiscal year 2022-23 SDTIP and have no changes to their funding needs or project requirements and are still in process. These projects are included in the totals of the various graphs and charts shown in the SDTIP. • Civic Engagement with Open Data • Computer Aided Dispatch • Live 911
Fiscal Year 2023-24 Continuing Projects – No Changes The following projects were approved during the fiscal year 2023-24 SDTIP and have no changes to their funding needs or project requirements and are still in process. These projects are included in the totals of the various graphs and charts shown in the SDTIP. • Business Process Automation • Expansion of Yardi • Records Digitization
Fiscal Year 2024-25 Continuing Projects – No Changes The following projects were approved during the fiscal year 2023-24 SDTIP and have no changes to their funding needs or project requirements and are still in process. These projects are included in the totals of the various graphs and charts shown in the SDTIP. • Data Governance and Operations Analytics • Payment Card Industry (PCI) Compliance • RFID Replacement • Virtual Reality (VR) Training
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Fiscal Year 2025-26 Continuing Projects – No Changes • • • •
Early Literacy Interactive Technology Facility Monitoring and Analytics Police Records Management System Website Redesign
Completed, Removed or Delayed Projects The following projects were completed, removed or delayed during fiscal year 2025-26. The completed projects are not part of the totals of the various graphs and charts. Removed projects are only included if the project was previously funded; the removed funding is shown as a reduction in the current year’s appropriations. If a project was previously funded and new funding was delayed, the appropriate graphs and charts reflect the updated funding year. Completed • Construction Waste Management Tracking • Enterprise Asset Management System • Professional Technical Services for Data Project Delivery • Risk Management Solution Assessment • Senior Center Resource Access Enhancement • Station Alerting Equipment Replacement • Utility Billing Portal • 3D Concepts & Walkthrough • Facility Monitoring and Analytics Pilot • Records Management Module • Records Management Archive Solution Removed • Police Records Management Migration • Discovery Management Assessment • Guest Facility Usage Analytics Delayed There are no projects previously approved being delayed.
H-5
ES TIMA TED TO TA L A PPRO PR IA TIO NS B Y GOA L Going into fiscal year 2026-27, there are 35 continuing and new projects planned over the next five years at an estimated total cost of $42.1 million. Included in the $42.1 million is approximately $17.9 million in estimated new costs over the course of the same time frame to provide additional funding for the continuation of existing projects as well as funding for new projects. Within the $17.9 million is approximately $6.6 million of estimated new appropriations for fiscal year 2026-27 for these same projects.
Estimated Total Projects Costs by Goal FY 2026-27 to FY 2030-31 $42.1 million Enha nce Bui ld Ca pacity for Da ta -driven Deci sion Ma king, $1,073,000 - 3%
Purs ue Communitywide Di gi tal Tra nsformation, $23,262,584 - 55%
H-6
Acces sibility a nd Tra ns parency, $1,261,000 - 3% Fos ter a Vibrant Ci vi c Enga gement Cul ture, $1,425,000 - 3% Promote Security a nd Sus tainability through Connectivity, $15,089,293 - 36%
Fiscal year 2026-27 estimated total appropriations by project goal Pursue Communitywide Digital Transformation $23.3 million This goal includes updating connectivity, up-to-date hardware and software, and a robust security strategy.
Build Capacity for Data-Driven Decision Making $1.1 million This goal’s projects include the policies, procedures and staffing necessary for the city to fully capture the value of emerging models of data analytics. It builds a comprehensive approach to citywide data management to enable data-rich key performance metrics and effective operation of city departments. A data policy and resources will be created to align departments with standards of data cataloging for compliance ease of data sharing.
Foster a Vibrant Civic Engagement Culture $1.4 million The city’s civic engagement culture builds upon the first two goals with a human-centered perspective to use data and technology in a way that respects people and their privacy. Projects in this category will support a vibrant culture where residents, organizations and businesses are invested in their community and its future.
Enhance Accessibility and Transparency $1.2 million This goal recognizes that open government and approaching problem-solving from an accessibility perspective leads to better outcomes for all. Projects in this category include Civic Engagement with Open Data, Online Permitting/Electronic Reviews.
Promote Security and Sustainability through Connectivity $15.1 million Projects in this goal include the annual replacement of hardware and technology infrastructure, a Facility Security Master Plan, the replacement of the Police Computer Aided Dispatch System, and an enhancement to the 911 emergency system.
H-7
PROJECTS PURSUE COMMUNITYWIDE DIGITAL TRANSFORMATION Core System Modernization & Phase II Project Funding Source: Technology Investment
$ 12,500,000
Managing Department: Information Technology
Estimated Annual Costs Increase/(Decrease):
Operational
$
Replacement
525,000 None
Prior Year
Req FY26-27
Est FY27-28
Est FY28-29
Est FY29-30
Est FY30-31
Total
Funding Source
Budget
Budget
Budget
Budget
Budget
Budget
Budget
Tech. Investment
$ 8,400,000
$ 3,600,000
$
500,000
$
-
$
-
$
-
$ 12,500,000
Project Benefits Without systems that can talk to each other, the city wastes time and resources manually compiling and integrating data. This greatly affects the city’s ability to make data-driven decisions, which are needed to ensure the highest and best use of taxpayer resources. Having fewer systems that consolidate the city’s core business functions will enable streamlined business processes and provide more timely access to data and information. It will also enhance operations and reduce the inefficiencies of employees having to learn and operate multiple systems.
About This Project This project provides for the consolidation and replacement of the city’s core systems. There are approximately 20 core systems including the city’s financial, human resources, payroll, budget, asset and work order management, licensing and permitting, utilities operations, computer-aided dispatch, land management, and program-event management. Rather than operate many systems with narrow applicability, the city is evaluating ways to consolidate its core systems as legacy applications are replaced. This may mean accelerated replacement for certain systems. The goal is to reduce redundancy and inefficiency associated with operating many different systems with different vendors.
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Consolidating down to a few systems that seamlessly integrate data and provide a more uniform interface will improve the experience of city employees and the public. The scope of this multi-year initiative includes the analysis, selection, purchase and implementation of the software and hardware necessary to consolidate, replace and integrate these systems with as few systems as possible while maintaining or enhancing existing capabilities. In April 2025, the City Council approved the agreements associated with Core Systems Modernization and the implementation project officially kicked off in May. Work to implement the new solutions is ongoing and the new systems are expected to go live midyear during fiscal year 2026-27. City staff are currently requesting funding of $3.6 million in fiscal year 2026-27 for acquisition, initial implementation and extended implementation. Phase II for the project will request an estimated $0.5 million in funding for the continued enhancement of the new system as part of the fiscal year 202728 SDTIP. Staff estimate that operational costs will increase by $525,000 in the first year of implementation and $100,000 annually for four years after implementation, but there will be no equipment replacement costs associated with the project.
Connected Carlsbad Goal Pursue Communitywide Digital Transformation
H-9
Digital Information Network Project Funding Source: Technology Investment
$ 6,525,584
Managing Department: Information Technology
Estimated Annual Costs Increase/(Decrease):
Operational
$
75,000
Replacement
$
100,000
Prior Year
Req FY26-27
Est FY27-28
Est FY28-29
Est FY29-30
Est FY30-31
Total
Funding Source
Budget
Budget
Budget
Budget
Budget
Budget
Budget
Tech. Investment
$ 6,275,584
$
250,000
$
-
$
-
$
-
$
-
$ 6,525,584
Project Benefits The city’s upgraded digital information network provides faster, more secure connections that support a wide range of essential services. It powers critical operations such as public safety systems, email, internet access, traffic management systems, and internal city communications. It also enables reliable Wi-Fi and internet service at public facilities, helping to improve access for both staff and the community. Overall, this investment supports more efficient city operations and better service delivery to residents.
About This Project The city operates on a leased fiber network that provides modern, high‑speed connectivity for staff, facilities and essential services. As we continue building toward a more resilient, reliable and cost‑effective city‑managed network, our efforts are focused on strengthening service continuity, improving long‑term performance and enhancing the city’s overall cybersecurity posture. Current efforts are centered on improving the communications that support the city’s traffic signal network, enhancing safety, coordination and responsiveness along city streets. Additional efforts are also underway to boost the reliability of the city’s utility SCADA systems, helping ensure continuous monitoring and consistent delivery of essential services. Additional work includes extending and upgrading connectivity between city facilities and expanding outdoor wireless access at parks across the community.
Connected Carlsbad Goal Pursue Communitywide Digital Transformation
H-10
Intersection Traffic Detection Upgrades Project Funding Source: Technology Investment
$ 1,500,000
Managing Department: Transportation
Estimated Annual Costs Increase/(Decrease):
Not known
Replacement
Not known
Prior Year
Req FY26-27
Est FY27-28
Est FY28-29
Est FY29-30
Est FY30-31
Total
Budget
Budget
Budget
Budget
Budget
Budget
Budget
Funding Source Tech. Investment
Operational
$
-
$
500,000
$
500,000
$
500,000
$
-
$
-
$ 1,500,000
Project Benefits
Ensure the ongoing reliability and sustainability of the city’s traffic management network.
About This Project The current traffic detection equipment at intersections along Rancho Santa Fe is outdated, resulting in inefficiencies in traffic flow and increased maintenance costs. The existing detection system was discontinued in 2022, and spare components are no longer available. This project will replace and upgrade the traffic detection equipment at 11 intersections along Rancho Santa Fe Road in fiscal year 2026-27 and then the following years at Palomar Airport Road and El Camino Real.
Connected Carlsbad Goal Pursue Communitywide Digital Transformation
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BUILD CAPACITY FOR DATA-DRIVEN DECISION MAKING There are no projects being funded for this category in fiscal year 2026-27.
FOSTER A VIBRANT CIVIC ENGAGEMENT CULTURE Audiovisual Upgrades Project Funding Source: Technology Investment
$ 1,425,000
Managing Department: Information Technology
Estimated Annual Costs Increase/(Decrease):
None
Replacement
Not known
Prior Year
Req FY26-27
Est FY27-28
Est FY28-29
Est FY29-30
Est FY30-31
Total
Budget
Budget
Budget
Budget
Budget
Budget
Budget
Funding Source Tech. Investment
Operational
$
925,000
$
100,000
$
100,000
$
100,000
$
100,000
$
100,000
$ 1,425,000
Project Benefits This project allows for the standardization of audiovisual equipment within the city’s work facilities so personnel can conduct business with internal and external resources virtually without the need to move between facilities for meetings.
About This Project This project provides for upgrades and growth of the city’s audiovisual equipment. The work landscape has changed—audiovisual equipment that previously supported in-person meetings in a room are now supporting meetings held virtually. The IT Department will update and maintain audiovisual equipment to meet this new work environment and other necessary enhancements to legacy technology. There are no changes to annual operational costs associated with this project. City staff cannot feasibly estimate replacement costs, if any, until after the new equipment is purchased.
Connected Carlsbad Goal Foster a Vibrant Civic Engagement Culture H-12
ENHANCE ACCESSIBILITY AND TRANSPARENCY Online Services ADA Compliance Project Funding Source: Technology Investment
$
100,000
Managing Department: Information Technology
Estimated Annual Costs Increase/(Decrease):
Funding Source Tech. Investment
Operational
30,000
Replacement
NA
Prior Year
Req FY26-27
Est FY27-28
Est FY28-29
Est FY29-30
Est FY30-31
Total
Budget
Budget
Budget
Budget
Budget
Budget
Budget
$
-
$
100,000
$
-
$
-
$
-
$
-
$
100,000
Project Benefits Ensuring that members of the Carlsbad community who rely on screen readers, captions, or keyboard navigation have access to content on the city’s digital platforms.
About This Project In April 2024, the Department of Justice finalized a rule clarifying how Title II of the Americans with Disabilities Act applies to services provided by state and local governments. Effective April 2027, these new regulations impose mandatory accessibility requirements for websites, mobile applications, and other digital content provided by the city to ensure that they are accessible to individuals with disabilities. City staff are currently working with a third-party accessibility consultant to conduct accessibility audits of the city’s websites and to develop and facilitate accessibility training for city staff. The next phase of the project will include working with the accessibility consultant to conduct validation testing of the accessibility of third-party services and content.
Connected Carlsbad Goal Enhance Accessibility and Transparency
H-13
PROMOTE SECURITY AND SUSTAINABILITY THROUGH CONNECTIVITY Annual Hardware and Infrastructure Replacement Project Funding Source: IT Replacement Fund
$ 6,478,913
Managing Department: Information Technology
Estimated Annual Costs Increase/(Decrease):
Operational
None
Replacement
None
Prior Year
Req FY26-27
Est FY27-28
Est FY28-29
Est FY29-30
Est FY30-31
Total
Funding Source
Budget
Budget
Budget
Budget
Budget
Budget
Budget
IT Replacement
$ 1,390,602
$ 1,200,000
$ 1,200,000
$ 1,200,000
$ 6,478,913
$
688,311
$
800,000
Project Benefits Citywide hardware and infrastructure changes are necessary and ongoing. Replacement equipment is needed to support the city's technology infrastructure and department-specific needs.
About This Project This project provides replacement equipment funding for scheduled replacement of laptops, desktops, internal servers, routers, switches and other network and data center requirements. There is no increase or decrease in operational costs associated with the annual replacement program. Due to the circular nature of the replacement program, replacement costs fluctuate annually depending on the hardware life cycles which can range from three years to 10 years.
Connected Carlsbad Goal Promote Security and Sustainability through Connectivity
H-14
Automated License Plate Reader Replacement Project Funding Source: Technology Investment
$ 1,000,000
Managing Department: Information Technology
Estimated Annual Costs Increase/(Decrease):
120,000
Replacement
NA
Prior Year
Req FY26-27
Est FY27-28
Est FY28-29
Est FY29-30
Est FY30-31
Total
Budget
Budget
Budget
Budget
Budget
Budget
Budget
Funding Source Tech. Investment
Operational
$
-
$
500,000
$
500,000
$
-
$
-
$
-
$ 1,000,000
Project Benefits License plate readers capture images of license plates then use software to compare them against a law enforcement database that is used to identify stolen vehicles, stolen license plates, missing persons and vehicles associated with people who have been involved in criminal or terrorist activities. They may also be used to gather information related to homeland security, human trafficking and stolen property.
About This Project There are currently license plate readers installed at 128 fixed locations and 24 mobile cameras installed on police vehicles that were installed in 2022 and are nearing end of life and end of warranty. This project will involve issuance of a Request for Proposal (RFP) to select, acquire and implement a new solution along with new cameras to replace the existing end-of-life equipment.
Connected Carlsbad Goal Promote Security and Sustainability through Connectivity
H-15
Cybersecurity Program Development Project Funding Source: Technology Investment
$ 1,250,000
Managing Department: Information Technology
Estimated Annual Costs Increase/(Decrease):
Not known
Replacement
Not known
Prior Year
Req FY26-27
Est FY27-28
Est FY28-29
Est FY29-30
Est FY30-31
Total
Budget
Budget
Budget
Budget
Budget
Budget
Budget
Funding Source Tech. Investment
Operational
$
750,000
$
100,000
$
100,000
$
100,000
$
100,000
$
100,000
$ 1,250,000
Project Benefits As a result of internal assessments and evaluations by external parties, city staff have identified certain initiatives within the six functions of the cybersecurity framework to translate into projects. Implementation of these projects will require funding for assessments and evaluations, implementation, and staff training. Once the enhanced security infrastructure is in place, operational costs will move to the operations budget. City staff identified and planned the following projects for implementation: • Disaster Recovery program assessment and development • Migration to a cloud-native security information and event management solution • Cybersecurity governance program • External attack surface visibility and risk reduction capabilities • Expanded managed security service provide support for cloud monitoring of the security information and event management solution • Incident response procedure development and training
About This Project The cybersecurity program provides support and protection to the City of Carlsbad so it can successfully accomplish its mission. As the threat landscape is changing and getting more sophisticated in lockstep with advances in technology, we need to ensure the city’s cybersecurity program is robust enough to keep threat actors from causing harm to the city. To ensure we address the different areas and aspects of cybersecurity, city staff have developed and adopted an approach based on the National Institute of Standards and Technology Cybersecurity Framework to cybersecurity defense program which covers six functions: • Identify – Develop the organizational understanding to manage cybersecurity risk to systems, assets, data and capabilities. The activities in this function are foundational for
H-16
•
•
•
•
•
effective use of the Framework. Understanding the business context, the resources that support critical functions and the related cybersecurity risks enables an organization to focus and prioritize its efforts, consistent with its risk management strategy and business needs. Examples of outcome categories within this function include Asset Management, Business Environment, Governance, Risk Assessment and Risk Management Strategy. Protect – Develop and implement the appropriate safeguards to ensure delivery of critical infrastructure services. The Protect function supports the ability to limit or contain the impact of a potential cybersecurity event. Examples of outcome categories within this function include Access Control, Awareness and Training, Data Security, Information Protection Processes and Procedures, Maintenance, and Protective Technology. Detect – Develop and implement the appropriate activities to identify the occurrence of a cybersecurity event. The Detect function enables timely discovery of cybersecurity events. Examples of outcome categories within this function include Anomalies and Events, Security Continuous Monitoring, and Detection Processes. Respond – Develop and implement the appropriate activities to act regarding a detected cybersecurity event. The Respond function supports the ability to contain the impact of a potential cybersecurity event. Examples of outcome categories within this function include Response Planning, Communications, Analysis, Mitigation and Improvements. Recover – Develop and implement the appropriate activities to maintain plans for resilience and to restore any capabilities or services that were impaired due to a cybersecurity event. The Recover function supports timely recovery to normal operations to reduce the impact from a cybersecurity event. Examples of outcome categories within this function include Recovery Planning, Improvements and Communications. Govern – Establish and maintain the organizational oversight to manage and align cybersecurity activities with mission and stakeholder expectations. The Govern function supports effective decision-making through defined roles and responsibilities, strategy and policy development, and oversight of cybersecurity and supply chain risk. Examples of outcome categories within this function include Organizational Context, Risk Management Strategy, Supply Chain Risk Management, Roles and Responsibilities, Policy, and Oversight.
At this time, and depending on the types of programs implemented over the course of the project, city staff cannot feasibly determine any operational or replacement costs for fiscal year 2026-27 and beyond. No new operational or replacement costs were requested for the fiscal year 2025-26 budget cycle.
Connected Carlsbad Goal Promote Security and Sustainability through Connectivity
H-17
Facility Security Master Plan Project Funding Source: Technology Investment
$ 2,039,000
Managing Department: Information Technology
Estimated Annual Costs Increase/(Decrease):
100,000
Replacement
NA
Prior Year
Req FY26-27
Est FY27-28
Est FY28-29
Est FY29-30
Est FY30-31
Total
Budget
Budget
Budget
Budget
Budget
Budget
Budget
Funding Source Tech. Investment
Operational
$
200,000
$
721,000
$
311,000
$
438,000
$
369,000
$
-
$ 2,039,000
Project Benefits The modernization of the public safety video monitoring environment provides substantial organizational, operational, and public‑safety benefits. By standardizing camera hardware, placement practices, and lifecycle management, the project replaces the inconsistent and fragmented approaches previously used across departments. This unified framework ensures higher and more reliable video quality, supported by a system that offers improved performance, scalable storage, and long‑term maintainability. This was a key improvement initiative that was an output from the Facility Security Master Plan.
About This Project The Facility Security Master Plan was originally meant to provide a citywide, strategic, approach to the deployment of various physical security improvements around the city. During final drafting of the plan, it was decided to separate non-technical elements of the plan to be addressed by other projects and programs. Thus, leaving the deployment of cameras citywide as part of this project. Going forward, this project modernizes and standardizes public safety video monitoring infrastructure. It will involve a multi‑phase installation of new and replacement cameras across prioritized locations. When complete, this system will provide a unified, modern platform that supports both operational security and future initiatives in Public Safety.
Connected Carlsbad Goal Promote Security and Sustainability through Connectivity
H-18
M INOR PROJ EC TS
There are no minor projects being funded in fiscal year 2026-27.
FUTURE PROJECTS Estimated fiscal year 2026-27 through 2030-31 appropriations by goal The City of Carlsbad’s SDTIP for fiscal year 2026-27 to fiscal year 2030-31 outlines 35 projects at an estimated total cost of $42.1 million. Of the $42.1 million, $17.9 million is for new or increased funding for projects over the next five years. The information provided for future years reflects the most comprehensive snapshot of known or anticipated future projects as well as associated estimated costs.
Estimated Future Projects Costs by Goal FY 2026-27 to FY 2030-31 $17.9 million Bui ld Ca pacity for Da tadri ven Decision Ma king, $50,000 - 0%
Purs ue Communitywide Di gi tal Tra nsformation, $7,925,000 - 44%
Enha nce Accessibility a nd Tra nsparency, $160,000 - 1% Fos ter a Vibrant Ci vi c Enga gement Cul ture, $500,000 - 3%
Promote Security a nd Sus tainability through Connectivity, $9,277,311 - 52%
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Estimated Fiscal Year 2026-27 Appropriations by Goal The fiscal year 2026-27 SDTIP outlines $6.6 million in new appropriations for fiscal year 2026-27 to provide additional funding for the continuation of existing projects as well as funding for new projects.
Requested FY 2026-27 Appropriations by Goal $6.6 million Enha nce Accessibility a nd Tra nsparency, $100,000 - 2%
Fos ter a Vibrant Ci vic Enga gement Culture, $100,000 - 1%
Promote Security a nd Sus tainability through Connectivity, $2,009,311 - 31%
Purs ue Communitywide Di gi tal Tra nsformation, $4,350,000 - 66%
Estimated fiscal year 2027-28 through 2030-31 pending current or new projects with future funding requests The projects listed in the table below represent projects that have been presented to the SDTIP Committee but do not require funding or have been delayed for the fiscal year 2026-27 budget year. These projects will be reevaluated for the fiscal year 2027-28 budget year and, if approved for funding in fiscal year 2027-28, will then have a project page included as part of the SDTIP in the appropriate subsequent fiscal year. These projects have been included in the estimated five-year tables and funding projections.
Project Name
Connected Carlsbad Funding Goal Source
Core Systems Modernization Phase II Integrated Library Solution Phone System Migration Staff Citywide Printer Replacement Website Migration Aerial Topographic Imagery Interactive Application Navigator After Hours Dispatch Solution Drone as a First Responder Police In-car Video Real Time Crime Center Infrastructure
PCDT PCDT PCDT PCDT PCDT BCDDM EAT PSSC PSSC PSSC PSSC
Prior Appropriation
TICF TICF TICF ITRF TICF TICF TICF TICF TICF TICF TICF
$
Connected Carlsbad Goal Abbreviations Build Capacity for Data-driven Decision Making = BCDDM Enhance Accessibility and Transparency = EAT Foster a Vibrant Civic Engagement Culture = FVCEC Promote Security and Sustainability through Connectivity = PSSC Pursue Communitywide Digital Transformation = PCDT Funding Source Abbreviations Information Technology Replacement Fund = ITRF Technology Investment Capital Fund = TICF Utilities Enterprise Funds (Operating or Capital) = UEF Funding Source Not Identified = Pending
H-20
-
Estimated Year 2 2027-28
Estimated Year 3 2028-29
Estimated Year 4 2029-30
Estimated Year 5 2030-31
-
500,000 1,000,000 200,000 75,000 50,000 60,000 100,000 200,000 350,000 200,000
-
800,000 -
-
-
$ 2,735,000 $
-
800,000 $
-
Requested Year 1 2026-27
$
$
Estimated Total Funding 500,000 1,000,000 200,000 800,000 75,000 50,000 60,000 100,000 200,000 350,000 200,000 $
3,535,000
F IVE - YEAR SC HED U LE OF PROJE C TS B Y C ONNE C TED CAR LS BAD GOA L Connected Carlsbad Goal Project Name
Funding Prior Source Appropriation
Requested Year 1 2026-27
Pursue Communitywide Digital Transformation Core Systems Modernization Core Systems Modernization Phase II Digital Information Network Integrated Library Solution Intersection Traffic Detection Upgrades Payment Card Industry (PCI) Compliance Phone System Migration RFID Replacement Staff Citywide Printer Replacement Website Migration Pursue Communitywide Digital Transformation Total
TICF TICF TICF TICF TICF TICF TICF TICF ITRF TICF
Build Capacity for Data-driven Decision Making Aerial Topographic Imagery Business Process Automation Data Governance and Operational Analytics Facility Monitoring and Analytics Build Capacity for Data-driven Decision Making Total
TICF TICF TICF TICF
300,000 423,000 300,000 1,023,000
-
Foster a Vibrant Civic Engagement Culture Audio Visual Upgrades Foster a Vibrant Civic Engagement Culture Total
TICF
925,000 925,000
Enhance Accessibility and Transparency Civic Engagement with Open Data Early Literacy Interactive Technology Interactive Application Navigator Online Permitting/Electronic Reviews (E-Reviews) Online Services ADA Compliance Record Digitization Website Redesign Expansion of Yardi Enhance Accessibility and Transparency Total
TICF TICF TICF TICF TICF TICF TICF TICF
Promote Security and Sustainability through Connectivity After Hours Dispatch Solution Annual Hardware and Infrastructure Replacement Automated License Plate Reader Replacement Computer Aided Dispatch (CAD) Cyber Security Program Development Drone as a First Responder Facility Security Master Plan Live 911 Police In-car Video Police Records Management System Real Time Crime Center Infrastructure Virtual Reality (VR) Training Promote Security and Sustainability through Connectivity Tota
TICF ITRF TICF TICF TICF TICF TICF TICF TICF TICF TICF TICF
Projects Total
Estimated Year 2 2027-28
Estimated Year 3 2028-29
$ 8,400,000 $ 3,600,000 $ $ 500,000 6,275,584 250,000 1,000,000 500,000 500,000 62,000 200,000 600,000 75,000 15,337,584 4,350,000 2,275,000
Estimated Year 4 2029-30
Estimated Year 5 2030-31
Estimated Total Funding
$ 500,000 500,000
$ 800,000 800,000
-
$ 12,000,000 500,000 6,525,584 1,000,000 1,500,000 62,000 200,000 600,000 800,000 75,000 23,262,584
50,000 50,000
-
-
-
50,000 300,000 423,000 300,000 1,073,000
100,000 100,000
100,000 100,000
100,000 100,000
100,000 100,000
100,000 100,000
1,425,000 1,425,000
198,000 78,000 645,000 100,000 50,000 30,000 1,101,000
100,000 100,000
60,000 60,000
-
-
-
198,000 78,000 60,000 645,000 100,000 100,000 50,000 30,000 1,261,000
1,390,602 1,580,000 750,000 200,000 66,380 1,750,000 75,000 5,811,982
688,311 500,000 100,000 721,000 2,009,311
100,000 1,200,000 500,000 100,000 200,000 311,000 350,000 200,000 2,961,000
1,200,000 100,000 438,000 1,738,000
800,000 100,000 369,000 1,269,000
1,200,000 100,000 1,300,000
100,000 6,478,913 1,000,000 1,580,000 1,250,000 200,000 2,039,000 66,380 350,000 1,750,000 200,000 75,000 15,089,293
$ 24,198,566 $ 6,559,311 $ 5,446,000 $ 2,338,000 $ 2,169,000 $ 1,400,000 $ 42,110,877
Funding Source Abbreviations Information Technology Replacement Fund = ITRF Technology Investment Capital Fund = TICF Utilities Enterprise Funds (Operating or Capital) = UEF Funding Source Not Identified = Pending
H-21
F IVE - YEAR SC HED U LE OF PROJE C TS B Y FU ND Funding Source Project Name
Connected Requested Carlsbad Prior Year 1 Goal Appropriation 2026-27
Technology Investment Capital Fund Aerial Topographic Imagery After Hours Dispatch Solution Audio Visual Upgrades Automated License Plate Reader Replacement Business Process Automation Civic Engagement with Open Data Computer Aided Dispatch (CAD) Core Systems Modernization Core Systems Modernization Phase II Cyber Security Program Development Data Governance and Operational Analytics Digital Information Network Drone as a First Responder Early Literacy Interactive Technology Expansion of Yardi Facility Monitoring and Analytics Facility Security Master Plan Integrated Library Solution Interactive Application Navigator Intersection Traffic Detection Upgrades Live 911 Online Permitting/Electronic Reviews (E-Reviews) Online Services ADA Compliance Payment Card Industry (PCI) Compliance Phone System Migration Police In-car Video Police Records Management System Real Time Crime Center Infrastructure Record Digitization RFID Replacement Virtual Reality (VR) Training Website Migration Website Redesign Technology Investment Capital Fund Total
BCDDM PSSC FVCEC PSSC BCDDM EAT PSSC PCDT PCDT PSSC BCDDM PCDT PSSC EAT EAT BCDDM PSSC PCDT EAT PCDT PSSC EAT EAT PCDT PCDT PSSC PSSC PSSC EAT PCDT PSSC PCDT EAT
Information Technology Replacement Fund Annual Hardware and Infrastructure Replacement Staff Citywide Printer Replacement Information Technology Replacement Fund Total
PSSC PCDT
ProjectsTotal Connected Carlsbad Goal Abbreviations Build Capacity for Data-driven Decision Making = BCDDM Enhance Accessibility and Transparency = EAT Foster a Vibrant Civic Engagement Culture = FVCEC Promote Security and Sustainability through Connectivity = PSSC Pursue Communitywide Digital Transformation = PCDT
H-22
$
Estimated Year 2 2027-28
Estimated Year 3 2028-29
Estimated Year 4 2029-30
$ $ 50,000 $ $ 100,000 925,000 100,000 100,000 100,000 500,000 500,000 300,000 198,000 1,580,000 8,400,000 3,600,000 500,000 750,000 100,000 100,000 100,000 423,000 6,275,584 250,000 200,000 78,000 30,000 300,000 200,000 721,000 311,000 438,000 1,000,000 60,000 500,000 500,000 500,000 66,380 645,000 100,000 62,000 200,000 350,000 1,750,000 200,000 100,000 600,000 75,000 75,000 50,000 22,807,964 5,871,000 4,246,000 1,138,000
1,390,602 1,390,602
688,311 688,311
1,200,000 1,200,000
1,200,000 1,200,000
Estimated Year 5 2030-31
$ 100,000 100,000 369,000 569,000
800,000 800,000 1,600,000
Estimated Total Funding
$ 50,000 100,000 100,000 1,425,000 1,000,000 300,000 198,000 1,580,000 12,000,000 500,000 100,000 1,250,000 423,000 6,525,584 200,000 78,000 30,000 300,000 2,039,000 1,000,000 60,000 1,500,000 66,380 645,000 100,000 62,000 200,000 350,000 1,750,000 200,000 100,000 600,000 75,000 75,000 50,000 200,000 34,831,964
1,200,000 1,200,000
6,478,913 800,000 7,278,913
$ 24,198,566 $ 6,559,311 $ 5,446,000 $ 2,338,000 $ 2,169,000 $ 1,400,000 $ 42,110,877
PRO JEC T FUND IN G SOUR CES Technology Investment Capital Fund – Funds set aside on a yearly basis to fund ongoing SDTIP digital transformation and technology projects. Revenue is mostly comprised of an annual General Fund transfer, estimated based on a portion of the transfer of 6% of General Fund revenues, in accordance with City Council Policy 91, Long Term General Fund Capital Funding Policy.
Information Technology Replacement Fund – Funds are collected annually from the city’s operating departments as part of the IT Department internal service fund chargeback; charges are based on an asset’s lifecycle and original cost. These funds are used to replace assets at the end of their useful lives. Utilities Enterprise Funds (Operating or Capital) – For information regarding the Utilities
Enterprise Funds, please see the Public Works Section of the Fiscal Year 2026-27 Operating Budget and for the Capital Funds please see the CIP Section of the Fiscal Year 2026-27 Operating Budget. There are currently no projects for this funding source.
Funding Source Not Identified – The funding for a project has not been identified or established at this time. Once the funding source is identified or established the project will reflect that source. There are no projects in this category in fiscal year 2026-27.
PRO JEC TE D F UND BA LAN CES TECHNOLOGY INVESTMENT CAPITAL FUND FUNDS AVAILABILITY PROJECTION Estimated Balance 2025-26 $
Beginning Available Balance Transfers In Interest Revenue Project Appropriations Ending Available Balance Balance Available for Future Projects
Requested Year 1 2026-27
$ $
3,201,869 $ 4,990,362 300,000 5,871,000 2,621,231 $
Estimated Year 2 2027-28
Estimated Year 3 2028-29
2,621,231 $ 5,027,224 306,000 4,246,000 3,708,455 $
3,708,455 $ 5,178,700 312,120 1,138,000 8,061,275 $
Estimated Year 4 2029-30 8,061,275 $ 5,332,089 318,362 569,000 13,142,726 $
Estimated Year 5 2030-31 13,142,726 5,483,566 324,730 200,000 18,751,022
3,201,869
INFORMATION TECHNOLOGY DEPARTMENT REPLACEMENT FUND FUNDS AVAILABILITY PROJECTION Estimated Balance 2025-26 Beginning Available Balance Replacement Cost Revenue Interest Revenue Replacement Appropriations Ending Available Balance Estimated Available Funds
Requested Year 1 2026-27 $
$ $
3,710,333 $ 488,857 180,000 688,311 3,690,879 $
Estimated Year 2 2027-28 3,690,879 $ 550,000 180,000 1,200,000 3,220,879 $
Estimated Year 3 2028-29 3,220,879 $ 550,000 180,000 1,200,000 2,750,879 $
Estimated Year 4 2029-30 2,750,879 $ 550,000 180,000 1,600,000 1,880,879 $
Estimated Year 5 2030-31 1,880,879 550,000 180,000 1,200,000 1,410,879
3,710,333
H-23
REVENUE PROJECTIONS SCHEDULE Fund Technology Investment Capital Information Technology Department Replacement Total
2022-23 2023-24 2024-25 2025-26 2026-27 Actual Actual Actual Projected Estimated Revenue Revenue Revenue Revenue Revenue $ 4,127,866 $ 4,526,422 $ 5,275,838 $ 2,996,187 $ 5,290,362 1,576,979 1,659,663 1,906,580 1,762,301 668,857 $ 5,704,845 $ 6,186,085 $ 7,182,418 $ 4,758,488 $ 5,959,219
BUDGET EXPENDITURE SCHEDULE Fund Technology Investment Capital Information Technology Department Replacement Total
H-24
2023-24 2024-25 2025-26 2026-27 2026-27 2026-27 Actual Actual Estimated Continuing New Total Expense Expense Expense Appropriations Appropriations Appropriations 6,100,000 $ 7,320,754 $ 5,871,000 $ 13,191,754 $ 1,349,059 $ 4,392,345 $ 1,225,243 1,066,315 950,000 1,306,310 688,311 1,994,621 7,050,000 $ 8,627,064 $ 6,559,311 $ 15,186,375 $ 2,574,302 $ 5,458,660 $
PROJECT ESTIMATED OPERATIONAL REQUIREMENTS The projects listed on the table below represent projects that have been determined will have or may have operating budget impacts in the fiscal year identified. Projects that have zero shown for each fiscal year are pending an estimate due to the possible solution having too many unknown variables. Once a more exact solution is identified, the operational estimate will be updated. As the fiscal years identified on the table become the next budgeting year, the Information Technology Department will request additional operating budget.
Total Funding Aerial Topographic Imagery After Hours Dispatch Solution Automated License Plate Reader Replacement Business Process Automation Civic Engagement with Open Data Core Systems Modernization Core Systems Modernization Phase II Cyber Security Program Development Data Governance and Operational Analytics Digital Information Network Drone as a First Responder Early Literacy Interactive Technology Facility Monitoring and Analytics Facility Security Master Plan Integrated Library Solution Interactive Application Navigator Intersection Traffic Detection Upgrades Live 911 Online Permitting/Electronic Reviews (E-Reviews) Online Services ADA Compliance Payment Card Industry (PCI) Compliance Phone System Migration Police In-car Video Police Records Management System Real Time Crime Center Infrastructure RFID Replacement Virtual Reality (VR) Training
$
Year 1 2026-27
Year 2 2027-28
Year 3 2028-29
Year 4 2029-30
Year 5 2030-31
Totals
50,000 $ 100,000 1,000,000 300,000 198,000 12,000,000 500,000 1,250,000 423,000 6,525,584 200,000 78,000 300,000 2,039,000 1,000,000 60,000 1,500,000 66,380 645,000 100,000 62,000 200,000 350,000 1,750,000 200,000 600,000 75,000
$ 525,000 32,000 4,800 8,000 -
$ 25,000 100,000 50,000 50,000 150,000 60,000 20,000 160,000 5,000
5,000 $ 15,000 100,000 30,000 150,000 7,000 100,000 30,000 -
$ 100,000 150,000 -
$ 100,000 150,000 -
5,000 15,000 25,000 825,000 100,000 50,000 82,000 30,000 4,800 600,000 7,000 60,000 20,000 100,000 160,000 30,000 8,000 5,000
$ 31,571,964 $
569,800 $
620,000 $
437,000 $
250,000 $
250,000 $ 2,126,800
H-25
H-26
INITIATIVES Core Systems Modernization Digital Information Network Pursue Community Wide Payment Card Industry (PCI) Compliance Digital Transformation Intersection Traffic Detection Upgrades RFID Replacement GOAL INITIATIVES Build Capacity for Data- Business Process Automation driven Decision Making Data Governance and Operational Anaytics GOAL INITIATIVES Foster a Vibrant Civic Audio Visual Upgrades Engagement Culture GOAL INITIATIVES Civic Engagement with Open Data Early Literacy Interactive Technology Online Permitting/Electronic Reviews (E-Review) Enhance Accessibility Records Digitization and Transparency Online Services ADA Compliance Website Redesign Expansion of Yardi GOAL INITIATIVES Annual Hardware and Infrastructure Replacement Automated License Plate Reader Replacement Promote Safety and Computer Aided Dispatch (CAD) Sustainability through Cyber Security Program Development Connectivity Live 911 Facility Security Master Plan Police Records Management
GOAL
Legend:
Project
Ongoing
JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN -------------------------------------------------------------Ongoing---------------------------------------------------------------Pilot-------- -----------Expanded Implementation---------------------------------------------------------------------Roll Out---------------------------------------------------------------------------------------------------------------------Ongoing-----------------------------------------------------------------------------3rd Party Services Validation Testing/Staff training-------------------------------Redesign----------------------------------------------------------------------------Ongoing---------------------------------------------------------------------Implementation---------JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN -------------------------------------------------------------Ongoing------------------------------------------------------------------RFP --------------- -----------------------------------------Implementation-----------------------------------------------------------------------------------------Implementation---------------------------------------------------------------------------------------------------------------Ongoing----------------------------------------------------Vendor Research-- -------Implementation-----------------------------------------------------------------------RFP ------------------------------------------------------------------------------------------------Implementation-------------------------------------
JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN ----------------------Implementation-------------------- ---------------------Phase II------------------------------------------------------------------------------------------Ongoing------------------------------------------------------------------Implementation-----------------------------------------------------------Implementation------------------------------------------------------Imp. JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN -------------------------------------------------------------Ongoing--------------------------------------------------------------------------------------------------------------------Ongoing-------------------------------------------------------JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN -------------------------------------------------------------Ongoing-------------------------------------------------------
Strategic Digital Transformation Investment Program FY 2026-27 Schedule
F IS CA L YEAR 2 026 -27 ROAD MAP
INITIATIVES
INITIATIVES
Foster a Vibrant Civic Engagement Culture
GOAL
Audio Visual Upgrades Website Migration
INITIATIVES
Build Capacity for Data- Business Process Automation driven Decision Making Data Governance and Operational Anaytics
GOAL
Core Systems Modernization/Phase II Digital Information Network Integrated Library System Pursue Community Wide Intersection Traffic Detection Upgrade Digital Transformation RFID Replacement Staff Citywide Printer Replacement Station Alerting Replacement
GOAL
Q1
Q1
Q1
Q1
Q1
Prior Years Q2 Q3 Q4
Prior Years Q2 Q3 Q4
FY 2026-27 Q2 Q3 Q4
FY 2026-27 Q2 Q3 Q4
FY 2026-27 Q2 Q3 Q4
Q1
Q1
Q1
In progress
FY 2027-28 Q2 Q3 Q4
FY 2027-28 Q2 Q3 Q4
FY 2027-28 Q2 Q3 Q4
Q1
Q1
Q1
Approved
In progress - has been fully approved and work has started Approved - has been fully approved but work has not started Evaluating - staff is currently studying merit and cost of initiative/project Ongoing - annual process
Q1
Legend:
Prior Years Q2 Q3 Q4
Strategic Digital Transformation Investment Program - 5-Year Roadmap
FY2028-29 Q2 Q3
FY2028-29 Q2 Q3
FY2028-29 Q2 Q3
Q4
Q4
Q4
Q1
Q1
Q1
Evaluating
FY2029-30 Q2 Q3
FY2029-30 Q2 Q3
FY2029-30 Q2 Q3
Q4
Q4
Q4
Q1
Q1
Q1
Ongoing
FY2030-31 Q2 Q3
FY2030-31 Q2 Q3
FY2030-31 Q2 Q3
Q4
Q4
Q4
F IVE - YEAR ROAD MAP
H-27
H-28
Promote Safety and Sustainability through Connectivity
GOAL
Enhance Accessibility and Transparency
GOAL
Annual Hardware and Infrastructure Replacement After Hours Dispatch Solution Automated License Plate Reader Replacement Computer Aided Dispatch (CAD) Cyber Security Program Development Drone as a First Reponder Facility Security Master Plan Live 911 Police In-car Video Police Records Management Solution Real Time Crime Center Infrastructure
INITIATIVES
Civic Engagement with Open Data Early Literacy Interactive Technology Expansion of Yardi Interactive Application Navigator Online Accessibility Online Permitting/Electronic Reviews (E-Review) Records Digitization Website Redesign
INITIATIVES
Q1
Q1
Q1
FY 2026-27 Q2 Q3 Q4
FY 2026-27 Q2 Q3 Q4
Q1
Q1
In progress
FY 2027-28 Q2 Q3 Q4
FY 2027-28 Q2 Q3 Q4
Q1
Q1
Approved
In progress - has been fully approved and work has started Approved - has been fully approved but work has not started Evaluating - staff is currently studying merit and cost of initiative/project Ongoing - annual process
Prior Years Q2 Q3 Q4
Q1
Legend:
Prior Years Q2 Q3 Q4
Strategic Digital Transformation Investment Program - 5-Year Roadmap
FY2028-29 Q2 Q3
FY2028-29 Q2 Q3
Q4
Q4
Q1
Q1
Evaluating
FY2029-30 Q2 Q3
FY2029-30 Q2 Q3
Q4
Q4
Q1
Q1
Ongoing
FY2030-31 Q2 Q3
FY2030-31 Q2 Q3
Q4
Q4
F IVE - YEAR ROAD MAP (co nt in ue d)
C API TA L IMPROVEME NT PRO GRAM The City of Carlsbad Capital Improvement Program reflects the city’s ongoing commitment to maintaining the highest standards of quality facilities for our community today and in the future. It is a planning document, not a commitment for spending. The program outlines the expenditure plan for future capital projects and the corresponding revenues to pay for those expenditures. Projects that are shown in the CIP are generally defined as any construction, rehabilitation or replacement of major infrastructure such as streets, libraries, parks, fire stations and administrative facilities, water, sewer and drainage facilities, and other facilities that are located on or in the ground. In most cases, the total construction cost of each of these assets is recorded and tracked as part of the city’s inventory of capital infrastructure assets and other city-owned property. The CIP budget covers a five-year period. Once the City Council adopts the proposed annual CIP budget, projects receive an appropriation that authorizes spending in the amount specified for the adopted fiscal year only. For projects related to the strategic plan or considered a critical need, construction funding is shown as an estimate—the City Council does not authorize an appropriation when the annual CIP budget is adopted. Instead, staff request an appropriation for the construction phase at award of the construction contract. Estimated budget information is shown for a 15-year period to provide the most comprehensive information about known future projects. Spending authority in future years is not granted until adoption of the annual proposed CIP budget associated with each year.
I NVES TIN G IN OUR QUAL I TY OF L IFE The City of Carlsbad’s philosophy is to take a proactive, long-range planning approach to building high quality facilities and infrastructure that support the needs and priorities of the community. Prudent financial planning has ensured ongoing funding to modernize, repair, and replace existing infrastructure projects through numerous asset management programs. Since the city applies a comprehensive asset management approach to infrastructure planning and budgeting, it can avoid more costly unexpected repairs or operational needs and minimize the burden on emergency expenditures. As the city grew and developed, there was a corresponding increase in the demand for developmentrelated services and new facilities. To ensure that the necessary infrastructure and facilities are built on a schedule that meets or exceeds this demand, the citizens of Carlsbad adopted a Growth Management Plan in 1986. The plan was established to manage development within the city by linking residential, commercial, and industrial development directly to standards for availability of public services and facilities.
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The Growth Management Plan states that unless a standard level of facilities is available to meet new demands resulting from the city’s growth, development cannot proceed. Recently, the city considered certain options pertaining to growth management, such as imposing a moratorium on building if infrastructure falls short of established standards due to development. However, this was determined to be impermissible by the California Housing and Community Development Department, per Senate Bill 330, Housing Crisis Act of 2019, which became effective on Jan. 1, 2020. The detailed level of planning required by Growth Management has allowed the city’s CIP to anticipate the funding needed for capital improvements in the next 15 years. Facilities such as community centers, parks and fire stations have been constructed and opened to the public under this program. The CIP has been designed to specifically address areas where new or expanded facilities will be needed to maintain compliance with the adopted performance standards. With the adoption of the fiscal year 2026-27 CIP, compliance with the Growth Management Plan is continued. In October 2022, the City Council approved a five-year strategic plan with policy goals to reflect the most important priorities of the community. The CIP budget includes the priority construction projects identified in the strategic plan.
PRO JEC T EVA LU ATION Development of the CIP is a team effort involving all operational departments, the City Manager’s Office, the City Council, and the community. Community feedback on infrastructure needs is considered and incorporated as appropriate. The CIP is fully vetted at multiple levels of the city organization by appropriate staff using an inclusive and transparent process and reviewed on a quarterly basis. Projects were evaluated for the ability to deliver realistic outcomes considering anticipated revenue decreases in some capital funding sources. The city remains focused on matching existing resources with reasonable and achievable project schedules while continuing to work on projects that are already underway. Existing project balances were evaluated to determine whether additional funding was needed or if the existing balances were adequate. Funding recommendations were matched against project timing and balanced against available funding sources.
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As the CIP is implemented throughout the year, staff continually re-evaluate projects’ scopes, costs and schedules to responsibly and cost-effectively manage infrastructure assets at the required levels of service throughout their lifecycle. Recommendations for project funding consider current project status, project scheduling and sequencing requirements, project constraints, and current staff capacity. Project charters are updated to include project description, location, summary of need, justification including any legislative or policy citations, cost estimates, and project scores.
Public health and safety City mission, vision and organizational values
City Council goals
Funding availability
Capital Improvement Program
Governing and policy documents
Community values
Environmental review
F IS CA L YEAR 2 026 -27 A PPRO PR IA TION S The CIP is organized by the following project categories:
Strategic Plan •Priority projects
Critical Need • Regulatory • Health & safety
Maintenance • Annual Allocation • Enterprise • Drainage
Closeout • In service • Warranty • Monitoring
The five-year CIP budget is based on project phase for Strategic Plan and Critical Need projects. This means rather than budgeting for the entire cost of a project well in advance of when the project is scheduled to begin, the City Council will be asked to consider appropriating money phase by phase. Phases include scoping (which includes feasibility studies and needs assessment), conceptual design (which includes environmental permitting and up to 30% preliminary engineering/design completion), final design (which includes 100% engineering/design completion and final engineer’s estimate) and construction. For example, as part of the annual budget process, city staff will request appropriations for a new project, starting with initial scoping. This typically involves early planning work and a feasibility analysis.
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Once plans and specifications for a project have been prepared, a more accurate engineer’s estimate for construction costs can be produced that considers the most up-to-date market conditions. For strategic plan and critical need projects, requesting appropriation of construction funding at the time staff request award of the construction contract allows the city to ensure that the approved project budget will align with the most accurate and timely cost estimates available. The 15-year forecast will assist the City Council with making informed decisions regarding the city’s ability to fund current and future projects. In the fiscal year 2026-27 CIP, there are approximately 195 continuing and new projects planned over the next 5 years. The fiscal year 2026-27 CIP outlines $59.1 million in new appropriations to provide additional funding for the continuation of existing projects as well as funding for six new projects. Projected revenues during the same fiscal year are estimated at $101.0 million. The chart below outlines the net $31.9 million in appropriations for projects in the core Strategic Plan, Critical Need and Maintenance CIP programming categories, which represent investments to support long-term goals, address urgent needs and maintain essential infrastructure.
FY 2026-27 Appropriations by Budget Category
Strategic Plan
FY25
Critical Need Maintenance
-10
0
10
20
30
40
Millions
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Fiscal year 2026-27 appropriations by project type Civic Buildings and Facility Maintenance $9.8 million This category includes a variety of facilities such as fire stations, libraries and community centers. Costs include repair, maintenance and replacement of civic buildings and other operational facilities.
Parks $11.1 million Projects include improvements and enhancements to existing parks, such as playground resurfacing, picnic areas, pickleball courts and other needs identified by the community and in recently updated parks master plans.
Drainage $5.5 million The city’s drainage infrastructure plays an important role in handling storm water runoff flows, as well as maintaining the water quality of the city’s creeks, lagoons and ocean. As the city continues to age, it is increasingly necessary to balance repairing and replacing the existing lines with enhancing the current infrastructure to accommodate future needs.
Sewer $8.0 million The city’s sewer, or wastewater, projects include numerous pipeline construction and rehabilitation projects, as well as improvements to the Encina Wastewater Treatment facility. Most new lines are built and paid for with impact fees collected with new development.
Water and Recycled Water $7.6 million Future water and recycled water projects include construction of new pipelines, replacement of existing waterlines and reservoir improvements. The Carlsbad Municipal Water District has been producing and delivering recycled water for over 30 years.
Transportation $17.1 million People of all ages and abilities want to go places safely and conveniently in Carlsbad, whether they drive, walk, bike, or ride a bus or train. The city continues to invest in modernizing roads, leveraging technology to improve traffic systems, and making timely repairs and rehabilitation of the roadways, bridges, sidewalks and other assets in public rights of way throughout the city.
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NEW CA PI TA L IM PROVEMEN T PRO JE CTS Project
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Description
FY27 Appropriation
District
Batiquitos Lift Station Improvements
The project includes upgrades to the lift station to replace aging electrical, mechanical and structural facilities and to accommodate future pump flow capacity.
$400,000
4
Chinquapin Lift Station Force Main Improvements
The lift station currently has one force main and requires an additional outfall to fulfill the operational redundancy requirements of the engineering standards.
Future FY 2027-28
1
Chinquapin Sewer Improvements
The project will redirect sewer flow from Chinquapin Sewer Lift Station to the VistaCarlsbad Sewer Interceptor to mitigate downstream impacts.
$50,000
1
Dove Library Central Plant Refurbishment
The project will refurbish the Central Plant at the Dove Library.
$200,000
3
Leo Carrillo Ranch Stair Replacement
The project will replace the existing three staircases at Leo Carillo Ranch Historic Park.
$500,000
2
Water System Improvements
The project will upsize various water pipeline segments to provide capacity in accordance with CMWD's design standards and Water Master Plan.
$500,000
Citywide
C API TA L IMPROVEME NT PRO GRAM REV ENUE S Capital Improvement Program Projected Revenues FY 2026-27 to FY 2040-41 $1.0 billion Utility Replacement transfers, 25.0%
Financing Districts, 8.7% General Capital Construction transfers, 8.9% Infrastructure Replacement transfers, 8.9%
Developer fees, 25.5%
Other agencies, 23.0%
Over the next 15 years, revenues for capital projects are estimated at $1.0 billion and are segregated into six major funding sources: (1) fees generated by development in the City of Carlsbad, (2) special district fees and taxes from the community facilities districts and bridge and thoroughfare benefit districts, (3) water and wastewater replacement funds, (4) infrastructure replacement funds other than wastewater and water, (5) general capital construction funds, and (6) other sources, including grants, sales taxes and contributions from other agencies. Approximately 26% of all capital revenue is received as a result of development, including developer fees and financing districts in the chart above, and is dependent upon assumptions made about the city's annual growth in dwelling units and commercial and industrial square feet. These revenues include Public Facilities Fees, Traffic Impact Fees, Park-In-Lieu Fees, Planned Local Drainage Fees, water connection fees, sewer connection charges, and community facilities districts and bridge and thoroughfare benefit districts fees. Water and wastewater replacement revenues generated by user fees equal approximately 25% of total revenues and are used to pay for replacement of existing water and sewer facilities. Infrastructure Replacement and General Capital Construction revenues, equal to 17%, are transfers from the city’s General Fund, which are being set aside to pay for replacement of major capital facilities other than wastewater and water facilities and the construction of various municipal projects. The remaining 23% consists of revenues from other agencies and include federal and state grants, the county sales tax program Transnet, gas taxes, and contributions or reimbursements from cities, developers, and other agencies.
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F U TU RE GROW TH AND DE VELO PMEN T As shown on the graph on the previous page, there are a variety of revenues that are used to fund the capital projects. In order to estimate revenues to be received from development, several assumptions about the rate and type of future development are made. These assumptions can change from year to year and tend to correlate with the current economic climate. Every year, city staff evaluates all existing and future private development projects and compares this information to the capacity of the city using the most current adopted general plans. Information about existing development activity combined with estimates of how remaining net developable land might develop is then summarized to prepare future projections about when and where residential and non-residential development may occur. The following table shows the number of residential units and non-residential square feet of development that was used in calculating estimated revenues for fiscal year 2026-27 and subsequent years to build out.
Projected Future Development Residential Units
Non-Residential Square Feet
2026-27
1,093
263,133
2027-28
514
19,605
2028-29
136
497,100
2029-30
412
67,139
2031-31
236
49,146
2031-36
2,528
624,927
2037-build out
3,055
1,201,621
Totals
7,974
2,722,671
Fiscal Year
Financial forecasting schedules are prepared to ensure that funding will be sufficient and available for construction of capital projects as planned in the CIP. In addition to evaluating whether or not capital funds are sufficient, significant operating cost impacts and availability of staff resources are also considered in evaluating the timing of projects. Where funding discrepancies occur, alternative financing methods and project timing are evaluated, and recommendations are made to resolve the discrepancies. Conservatively, about 7,974 residential units are anticipated for future development, and it is currently estimated that the city is more than 90% built out. Residential development for fiscal year 2026-27 is projected at 1,093 units, and, over the next five years, should average 478 units per year. The amount of non-residential development is projected at about 896,000 square feet over the next five years.
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Projects include several multi-family residential developments, commercial industrial, office and other mixed-use projects. Development estimates provide data for estimating future fee revenues, which are calculated by multiplying each applicable development fee by the estimated number of dwelling units and/or square feet of construction expected during each year.
F U TU RE PRO JEC TS Long-range planning and responsible asset management play key roles in the development of future capital projects. Using data from various infrastructure master plans, ongoing asset condition assessments, technical modelling, field inspections as well as community feedback, the information provided for future years reflects the most comprehensive snapshot of known or anticipated future projects as well as associated estimated costs. Future costs for projects forecast for the fiscal year 2031-32 to fiscal year 2040-41 period are estimated at approximately $858 million. The $858 million includes the projects in the 15-year forecast over the noted 10-year period, as well as unfunded projects forecasted during that same period.
Future Project Costs by Type FY 2031-32 to FY 2040-41 $858 million Water 13%
Civic 16%
Drainage 11% Transportation 36%
Parks 8% Recycled Water 2% Sewer 14%
I-9
C AL C ULA TION OF F U TURE FEES The revenue projections in the CIP reflect the growth assumptions identified in the previous section. The following information delineates how those assumptions were applied to estimate future development revenues. The mix of future multi-family and single-family residential units is assumed to be 90% and 10%, respectively, and reflects the anticipated mix of residential development for each Local Facilities Management Zone. To calculate estimated revenues for Traffic Impact Fees, the number of average daily trips was computed for each type of development use. An attached multi-family residential dwelling unit is assigned eight trips and a detached single-family unit is assigned 10 trips per day. The trips-per-day value for commercial and industrial buildings are 40 and eight trips per 1,000 square feet of development, respectively, although the actual volume of trips generated by commercial and industrial buildings can vary widely depending on the ultimate land use. CFD No. 1 is a citywide district established to finance various civic facilities required under the city’s Growth Management Plan. Park-in-Lieu Fees are collected for the purchase and development of parkland within each quadrant of the city, and the fees are based on the acquisition cost of parkland. Projects in the CIP funded with Park-in-Lieu Fees include future park site acquisition, development and restoration.
U NF UNDED PRO JEC TS The CIP includes several projects for which there is no identifiable funding source for future construction and, in some cases, where only partial funding has been identified. The city will investigate obtaining possible external funding, such as federal and state grants, loans, or other financing sources. Once funding is identified for these projects, the project costs will be reviewed and updated to reflect actual cost estimates. Projects on this list are part of the City Council’s Five-Year Strategic Plan or were identified by Council direction. One project is partially funded by the Traffic Impact Fee program. The program was planned to generate enough revenue to pay 20% of the total costs of these projects, leaving the remaining 80% unfunded. Cannon Lake Park Chestnut Complete Street I-5 to Railroad Project Study College Boulevard Extension Fire Station 1 Replacement Fire Station 7 Orion Complex Energy Storage South Carlsbad Boulevard Realignment (Partial Funding/TIF)
I-10
$2,500,000 $2,750,000 $70,000,000 $28,000,000 $28,000,000 $11,000,000 $5,500,000
PRO JEC TE D F UND BA LAN CES FOR F IS CA L YEAR 2 025 -26
Fund BTD#2 - Poinsettia Lane/Aviara Pkwy BTD#3 - Cannon Road West CFD #1 - Citywide Gas Tax Gas Tax (Road Maint. & Rehab Acct.) General Capital Const. Grants - Federal Grants - State Infrastructure Replacement Other Park Fee Zones 5,13,16, 17, 18 Parking in Lieu Park-In-Lieu NE Park-In-Lieu NW Park-In-Lieu SE Park-In-Lieu SW Planned Local Drainage Area A Planned Local Drainage Area B Planned Local Drainage Area C Planned Local Drainage Area D Public Facilities Fee Sewer Connection Sewer Replacement Traffic Impact Fee Transnet/Local Water - Potable Water - Recycled Water Replacement - Potable Water Replacement - Recycled Total
July 1, 2025 Projected June 30, 2026 Projected Debt Service Projected Unreserved Projected Balance Revenues Expenditures Loans & Other Balance $ 1,507,580 $ 45,759 $ $ $ 1,553,339 565,533 18,702 584,235 110,631,001 4,576,447 7,346,795 135,606 107,725,048 17,611,817 3,881,361 2,648,348 18,844,830 4,968,511 3,269,943 754,450 7,484,004 58,608,804 10,902,117 18,292,747 51,218,174 6,203 3,777,560 (3,771,357) (156,793) 156,793 108,346,759 12,515,869 20,408,071 100,454,557 2,188,828 73,672 2,262,500 5,362,784 259,934 5,622,718 4,699,717 154,173 152,094 4,701,796 2,682,931 739,001 1,121,512 2,300,420 1,758,969 69,044 10,082 1,817,931 1,753,326 57,982 1,811,308 1,252,554 74,923 17,009 1,310,468 1,609,958 261,706 1,329 1,870,335 1,740,035 81,662 35,833 1,785,864 813,099 29,815 11,610 831,304 37,697,102 2,676,467 397,037 39,976,531 7,716,348 391,700 323,590 7,784,458 33,752,371 22,182,294 11,294,428 44,640,237 16,871,790 1,815,740 1,964,346 16,723,184 9,136,661 30,872,856 6,030,943 33,978,574 40,440,895 1,917,094 356,243 42,001,746 (17,190,861) 18,415,133 79,706 1,144,566 60,308,590 8,405,915 17,684,363 51,030,142 16,098,676 515,106 1,647,896 2,150,000 12,815,886 $ 555,625,102 $ 99,519,295 $ 97,461,710 $ 2,285,606 $ 555,397,080
I-11
PROJECTED FUND BALANCES FOR FISCAL YEAR 2026-27
Fund BTD#2 - Poinsettia Lane/Aviara Pkwy BTD#3 - Cannon Road West CFD #1 - Citywide Gas Tax Gas Tax (Road Maint. & Rehab Acct.) General Capital Const. Grants - Federal Grants - State Infrastructure Replacement Other Park Fee Zones 5,13,16, 17, 18 Parking in Lieu Park-In-Lieu NE Park-In-Lieu NW Park-In-Lieu SE Park-In-Lieu SW Planned Local Drainage Area A Planned Local Drainage Area B Planned Local Drainage Area C Planned Local Drainage Area D Public Facilities Fee Sewer Connection Sewer Replacement Traffic Impact Fee Transnet/Local Water - Potable Water - Recycled Water Replacement - Potable Water Replacement - Recycled Total
I-12
July 1, 2026 June 30, 2026 July 01, 2026 2026-27 June 30, 2027 Projected Estimated Continuing New Total Projected Balance Revenues Appropriations Appropriations Appropriations Balance $ 1,553,339 $ $ $ $ $ 1,553,339 584,235 584,235 107,725,048 6,156,090 43,795,649 110,000 43,905,649 69,975,489 18,844,830 3,419,140 10,231,540 5,219,986 15,451,526 6,812,444 7,484,004 3,265,115 6,759,633 3,392,000 10,151,633 597,486 51,218,174 4,990,362 17,095,420 (725,674) 16,369,746 39,838,789 (3,771,357) 9,860,908 6,089,551 6,089,551 5,534,510 5,534,510 5,534,510 100,454,557 5,490,362 42,935,780 21,963,082 64,898,862 41,046,057 2,262,500 2,140,000 2,140,000 122,500 5,622,718 98,276 1,500,000 1,500,000 4,220,993 360,000 360,000 360,000 4,701,796 1,465,893 1,465,893 3,235,903 2,300,420 7,770,952 654,000 2,775,000 3,429,000 6,642,372 1,817,931 4,031,384 363,925 1,040,000 1,403,925 4,445,390 1,811,308 219,100 219,100 1,592,208 1,310,468 14,314 14,314 1,296,154 1,870,335 352,378 15,166 15,166 2,207,547 1,785,864 603,087 63,648 63,648 2,325,303 831,304 296,937 929 929 1,127,312 4,171,531 936,785 5,108,316 42,881,977 8,013,762 39,976,531 7,784,458 1,691,175 7,353,071 (2,204,684) 5,148,387 4,327,246 44,640,237 19,065,240 37,374,383 9,202,999 46,577,382 17,128,095 16,723,184 8,637,813 11,874,909 (2,510,000) 9,364,909 15,996,087 30,872,856 5,949,524 21,625,274 8,767,000 30,392,274 6,430,106 42,001,746 4,311,487 3,790,128 2,010,606 5,800,734 40,512,499 1,144,566 2,543,402 (1,706,835) 836,567 307,999 51,030,142 1,424,490 31,078,003 6,704,424 37,782,427 14,672,206 12,815,886 4,948,571 1,594,499 6,543,070 6,272,816 $ 555,757,080 $ 100,962,991 $ 261,498,331 $ 59,069,188 $ 320,567,519 $ 336,152,553
REV ENUE PRO JE CTION S SC HED ULE Fund BTD#2 - Poinsettia Lane/Aviara Pkwy BTD#3 - Cannon Road West CFD #1 - Citywide Gas Tax Gas Tax (Road Maint. & Rehab Acct.) General Capital Const. Grants - Federal Grants - State Infrastructure Replacement Other Park Fee Zones 5,13,16, 17, 18 Parking in Lieu Park-In-Lieu NE Park-In-Lieu NW Park-In-Lieu SE Park-In-Lieu SW Planned Local Drainage Area A Planned Local Drainage Area B Planned Local Drainage Area C Planned Local Drainage Area D Public Facilities Fee Sewer Connection Sewer Replacement Traffic Impact Fee Transnet/Local Water - Potable Water - Recycled Water Replacement - Potable Water Replacement - Recycled Total
$
$
2023-24 2024-25 2025-26 2026-27 Actual Projected Estimated Actual Revenue Revenue Revenue Revenue 66,345 $ 81,912 $ 45,759 $ 24,888 30,727 18,702 7,302,884 9,367,046 4,576,447 6,156,090 3,811,249 4,194,626 3,881,361 3,419,140 3,172,894 3,285,130 3,269,943 3,265,115 13,423,012 21,359,030 10,902,117 4,990,362 56,219 1,133 9,860,908 452,295 1,736,530 156,793 5,534,510 10,015,495 11,329,989 12,515,869 5,490,362 91,384 142,082 73,672 296,607 322,595 259,934 98,276 228,050 339,043 154,173 1,132,209 839,348 739,001 7,770,952 83,719 567,937 69,044 4,031,384 1,278,208 477,892 57,982 69,555 187,851 74,923 143,663 94,701 261,706 352,378 79,010 95,915 81,662 603,087 57,989 84,096 29,815 296,937 3,687,412 5,229,666 2,676,467 8,013,762 745,457 746,450 391,700 1,691,175 10,879,747 21,464,356 22,182,294 19,065,240 2,273,017 1,873,029 1,815,740 8,637,813 4,457,603 8,399,842 6,030,943 5,949,524 2,100,666 2,634,455 1,917,094 4,311,487 3,363,806 34,085 18,415,133 8,073,118 8,619,165 8,405,915 1,424,490 887,980 1,001,233 515,106 78,254,481 $ 104,539,865 $ 99,519,295 $ 100,962,991
Note: Revenues include transfers and fair market value adjustments.
I-13
B UD GE T E XPEND I TU RE S CHE DU LE
FUND BTD#2 - Poinsettia Lane/Aviara Pkwy BTD#3 - Cannon Road West CFD #1 - Citywide Gas Tax Gas Tax (Road Maint. & Rehab Acct.) General Capital Const. Grants - Federal Grants - State Infrastructure Replacement Other Park Fee Zones 5,13,16, 17, 18 Parking Park-In-Lieu NE Park-In-Lieu NW Park-In-Lieu SE Park-In-Lieu SW Planned Local Drainage Area A Planned Local Drainage Area B Planned Local Drainage Area C Planned Local Drainage Area D Public Facilities Fee Sewer Connection Sewer Replacement Traffic Impact Fee Transnet/Local Water - Potable Water - Recycled Water Replacement - Potable Water Replacement - Recycled Total
I-14
$
$
2025-26 2026-27 2026-27 2026-27 Estimated Continuing New Total Expense Appropriations Appropriations Appropriations $ $ $ $ 1,145,673 7,482,401 43,795,649 110,000 43,905,649 3,241,088 2,648,348 10,231,540 5,219,986 15,451,526 421,040 754,450 6,759,633 3,392,000 10,151,633 6,086,353 18,292,747 17,095,420 (725,674) 16,369,746 38,297 3,777,560 6,089,551 6,089,551 562,933 5,534,510 5,534,510 13,976,516 20,408,071 42,935,780 21,963,082 64,898,862 2,140,000 2,140,000 1,500,000 1,500,000 360,000 360,000 249,811 152,094 1,465,893 1,465,893 699,005 1,121,512 654,000 2,775,000 3,429,000 553,213 10,082 363,925 1,040,000 1,403,925
2023-24 Actual Expense 57,041 $ 962,730 1,984,349 5,045,379 10,306,345 49,535 117,611 7,293,771 34,379 130,121 25,429
2024-25 Actual Expense
26,547 252,941 5,979 7,130 1,304,479 3,031,587 6,529,066 1,903,324 3,256,939 134,627 224,112 2,223,068 400,567 45,307,054 $
26,298 12,310 17,574 27,608 418,732 34,510 7,659,400 875,860 9,041,136 17,076 3,107,066 9,103,168 2,664,453 59,979,120 $
17,009 1,329 35,833 11,610 397,037 323,590 11,294,428 1,964,346 9,136,661 356,243 79,706 17,684,363 3,797,896 99,747,316 $
219,100 14,314 15,166 63,648 929 4,171,531 7,353,071 37,374,383 11,874,909 21,625,274 3,790,128 2,543,402 31,078,003 4,948,571 261,498,331 $
936,785 (2,204,684) 9,202,999 (2,510,000) 8,767,000 2,010,606 (1,706,835) 6,704,424 1,594,499 59,069,188 $
219,100 14,314 15,166 63,648 929 5,108,316 5,148,387 46,577,382 9,364,909 30,392,274 5,800,734 836,567 37,782,427 6,543,070 320,567,519
PRO JEC T ESTI MA TED OPERA TIONAL RE QUIR EMEN TS The projects listed in the table below represent projects that have been determined will have or may have operating budget impacts within the next five fiscal years. Estimated impacts to operating budget are based on industry standards. Projects that have an estimated zero-dollar impact on the city’s operating budget are not listed below. As the fiscal years identified in the table become the next budgeting year the associated appropriate department may make a request for additional operating budget.
Department
Operating fiscal year
Estimated annual cost
Transportation
2027-28
$16,000
Transportation
2026-27
$44,000
Barrio Traffic Calming
Transportation
2026-27
$5,000
ECR Widening – Arenal to La Costa ECR Widening – Poinsettia to Camino Vida Roble Orion Center Trash Amendment Compliance Program – State Street Trash Amendment Compliance Program – Agua Hedionda
Transportation
2028-29
$1,800
Transportation
2026-27
$1,800
Facilities
2028-29
$800,000
Transportation
2028-29
$5,000
Transportation
2029-30
$5,000
Parks & Recreation
2027-28
$890,000
Transportation
2027-28
$22,000
Project Avenida Encinas Coastal Rail Trail – Segment 3 Barrio Street Lighting
Veterans Memorial Park Village Decorative Lighting – State Street, Madison, Roosevelt, and Washington
I-15
I-16
FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM STRATEGIC PLAN PROJECTS 🔎 Scoping ☐ Preliminary Design ☑ Final Design ♦ Construction (forecasted amounts; not appropriated in the budget process) New projects in italics Project ID
District
6065
1
ADA Beach Access - Pine to Tamarack
$1,143,800
-
Avenida Encinas Coastal Rail Trail and Pedestrian Improvements
$5,347,653
♦ $6,220,000
-
-
-
-
$6,220,000
Barrio Street Lighting
$5,684,300
($1,169,171)
-
-
-
-
($1,169,171)
Barrio Traffic Calming
$4,759,000
-
-
-
-
-
$0
$13,511,750
-
-
-
-
-
$0
$1,500,000
-
-
-
-
-
$0
$350,000
-
-
-
-
-
$0
$2,825,000
♦ $2,600,000
-
-
-
-
$2,600,000
$2,000,000
-
-
-
-
-
$0
-
-
-
-
-
-
$0
-
-
-
🔎 $250,000
-
-
$250,000
6004
2,3
4013
1
4015
1
3896
1
4617
2
6325
4
6058
1
6113
2
201909
2
6069
1
Type Project Name
Beach Access Repair and Upgrades Pine Avenue to Tamarack Business Park Recreational Facility (Zone 5 Park) Camino De Los Coches and La Costa Avenue Intersection Control Carlsbad Boulevard and Tamarack Avenue Intersection Improvement Carlsbad Boulevard Realignment Manzano Drive to Island Way Carlsbad Boulevard Realignment Manzano Drive to Island Way (RTCIP) Chestnut Complete Street I-5 to Railroad Project Study City Hall Complex & Cole Library Replacement El Camino Real Widening - Poinsettia Lane to Camino Vida Roble El Camino Real Widening - Arenal Road to La Costa Avenue El Camino Real Widening - Sunny Creek to Jackspar
Prior Appropriation
Requested 2026-27
Estimated 2027-28
Estimated 2028-29
♦ $10,000,000
Estimated 2029-30
-
Estimated 2030-31
-
Estimated 5-Year Total
-
$10,000,000
$1,028,105
-
-
-
-
☐ $15,500,000
$15,500,000
$4,595,000
$250,000
-
-
-
-
$250,000
$8,700,000
♦ $7,000,000
-
-
-
-
$7,000,000
$5,976,050
$350,000
-
-
-
-
$350,000
$100,000
-
-
-
-
-
$0
$3,470,100
♦ $4,700,000
-
-
-
-
$4,700,000
$300,000
-
-
-
-
-
$0
$5,608,000
-
-
-
-
-
$0
$12,458
-
-
-
-
-
$0
Monroe Street Pool Replacement
$20,164,977
-
-
-
-
-
$0
2
Orion Center
$10,043,839
☑ ($2)
♦ $24,921,000
♦ $24,921,000
-
-
$49,841,998
2,4
Pickleball Courts
$355,000
♦ $3,300,000
-
-
-
-
$3,300,000
2,4
Pickleball Courts
-
☑ $5,455
-
-
-
-
$5,455
3801
2
Robertson Ranch Park Development
$2,107,000
-
-
-
-
-
$0
6031
2,3,4
South Carlsbad Coastline
$1,689,776
-
-
-
-
-
$0
4008
Citywide
6072
2
6051
4
6094
2
4093
2
Fire Station 7
4714
2
Fleet Maintenance Refurbishment
4061
1
Grand Avenue Promenade
6075
1
Kelly Drive and Park Drive Complete Street Improvements
6076
4
La Costa Avenue Traffic Improvements
4724
1
3572 4612 4612
6082
1
4090
1
6104
Citywide
6054
2
6070
Citywide
6070
Citywide
6332
4
6626
Citywide
6103
1
6083
Citywide
State Street and Grand Avenue Road Improvements State Street Parking Lot Electric Vehicle Charging Stations Sustainable Mobility Plan Implementation Program
-
-
-
♦ $325,000
-
-
$325,000
$637,000
-
-
-
-
-
$0
$710,566
-
-
-
-
-
$0
Terramar Area Coastal Improvements
$12,100,000
☑ ($4,598,151)
-
-
-
-
($4,598,151)
Traffic Improvement Program
$4,188,000
☑ $200,000
☑ $200,000
☑ $200,000
☑ $200,000
☑ $200,000
$2,000,000
Traffic Improvement Program
$4,188,000
♦ $200,000
♦ $200,000
♦ $200,000
♦ $200,000
♦ $200,000
$2,000,000
$490,000
♦ $249,000
-
-
-
-
$249,000
$630,000
☑ $1,350,000
♦ $500,000
☑ $2,075,000
♦ $440,000
☑ $517,000
$4,882,000
$970,000
-
-
-
-
-
$0
-
-
-
-
-
-
$0
Traffic Signal - Maverick Way and Camino De Los Coches Trash Amendment Compliance Program Tyler Street Sidewalk Improvement Project
Utility Undergrounding Program Study
I-17
FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM STRATEGIC PLAN PROJECTS 🔎 Scoping ☐ Preliminary Design ☑ Final Design ♦ Construction (forecasted amounts; not appropriated in the budget process) New projects in italics Project ID
District
6019
1
201974
1
4609
Citywide
6089
1
6105
1
6108
1
2410
1
6109
1
6110
1
4016
1
6106
1
Prior Appropriation
Type Project Name
Valley and Magnolia Complete Streets
$5,058,205
Estimated 2027-28
Estimated 2028-29
♦ $4,717,000
-
Estimated 2029-30
Estimated 2030-31
-
-
Estimated 5-Year Total
-
$4,717,000
-
-
-
-
☑ $300,000
-
$300,000
$57,168,154
-
-
-
-
-
$0
-
-
-
-
☑ $63,000
♦ $255,000
$318,000
$145
-
-
-
-
-
$0
Village Lighting - Gateway Lighting
-
-
-
-
-
-
$0
Village Lighting - Hospitality District
-
-
-
-
☑ $1,050,000
-
$1,050,000
-
-
-
-
☑ $600,000
-
$600,000
-
-
-
-
☑ $950,000
-
$950,000
$1,103,853
♦ $1,110,000
-
-
-
-
$1,110,000
-
-
-
-
☑ $500,000
-
$500,000
Valley Street Traffic Calming Veteran's Memorial Park (All Quadrants) Village Intelligent Parking Implementation Village Lighting - Carlsbad Village Dr from Harding St to Ocean St
Village Lighting - Pedestrian Lampposts Oak Avenue Village Lighting - Pedestrian Lighting at Village Outskirts Village Lighting - State Street, Madison, Roosevelt, and Washington
Village Lighting - Train Station Area Total
I-18
Requested 2026-27
$
21,771,131
$
40,538,000
$
27,971,000
$
4,303,000
$
16,672,000
FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM CRITICAL NEED PROJECTS
🔎 Scoping ☐ Preliminary Design ☑ Final Design ♦ Construction (forecasted amounts; not appropriated in the budget process) New projects in italics Project ID
District
6118
Citywide
6084
3
6119
1
6119
1
4726
2
6111
1
Prior Appropriation
Type Project Name
Requested 2026-27
Estimated 2027-28
Estimated 2028-29
Estimated 2029-30
Estimated 2030-31
Estimated 5-Year Total
-
☑ $300,000
-
-
-
-
$300,000
Assessment District 97-1 Maintenance
$420,000
-
-
-
-
-
$0
Barrio Parking Improvements Project
$285,700
☑ 90,000
☑ 50,000
-
-
-
$140,000
Barrio Parking Improvements Project
$285,700
♦ $250,000
♦ $150,000
-
-
-
$400,000
Cannon Park Restroom
$45,765
-
-
-
-
-
$0
Carlsbad Village Drive Reconfiguration
ADA Parking Space Modifications
$350,000
-
♦ $1,500,000
-
-
-
$1,500,000
201913 Citywide
Carlsbad Village Drive Widening Pontiac Drive to Victoria Avenue
-
-
-
☑ $700,000
-
♦ $2,500,000
$3,200,000
201916
1
Chestnut Avenue Complete Street Improvements - Valley to Pio Pico
-
-
-
☐ $250,000
-
-
$250,000
6098
1
$400,000
-
-
-
-
-
$0
$2,110,000
☐ $800,000
-
-
-
-
$800,000
$50,000
☑ $1,375,000
♦ $3,250,000
♦ $2,250,000
-
-
$6,875,000
$350,000
♦ $995,000
-
-
-
-
$995,000
$959,414
☐ $2,140,000
-
-
-
-
$2,140,000
-
-
☑ $438,000
-
-
-
$438,000
6074
Citywide
4765
Citywide
4766
Citywide
Chestnut Underpass Public Art Project City Facility Safety and Parking Lot Lighting Assessment Citywide Community Parks’ Playgrounds Replacements / Upgrades Citywide Facilities Nonfunctional Turf Removal and Replacement
3636
2
College Boulevard Extension
201944
4
El Camino Real Right Turn Lane to East Bound Alga Road
6628
1
Laguna Drive Storm Drain
$256,000
☑ $1,000,000
-
-
-
-
$1,000,000
4616
3
Leo Carrillo Ranch Park Phase 3B
$350,000
☐ $540,000
☑ $1,484,000
-
-
-
$2,024,000
$350,000
☑ $950,000
♦ $750,000
♦ 1,750,000
♦ 800,000
-
$4,250,000
$350,000
-
☐ 950,000
☑ 750,000
♦ 1,750,000
♦ 800,000
$4,250,000
-
-
-
-
🔎 $400,000
-
$400,000
-
🔎 $250,000
-
-
-
-
$250,000
$600,000
☑ $700,000
-
-
-
-
$700,000
$609,330
-
-
-
-
-
$0
$1,280,000
-
-
-
-
-
$0
-
♦ $1,000,000
-
-
-
-
$1,000,000
4767
1
4767
1
6078
1
4773
2
6115
3
4770
2
6081
Citywide
4768
2
6116
Citywide
4085
2
6040
Citywide
6637
Citywide
4610
2
Northwest Quadrant Older Parks Rehabilitation and Improvement Northwest Quadrant Older Parks Rehabilitation and Improvement Ocean Street Reconfiguration Concepts Study
Orion Complex Energy Storage Paseo Del Norte Pedestrian and Bike Improvements Police and Fire Headquarters Central Plant Repair Project
Roadway Slope Stabilization Safety Training Center Emergency Backup Generator
$1,100,000
-
-
-
-
-
$0
South Shore Agua Hedionda Lagoon Trail
$789,940
-
-
-
-
-
$0
Traffic Impact Fee Update
$318,000
-
-
-
-
-
$0
Traffic Signal Cabinet Upgrades
$180,000
-
-
-
-
-
$0
Village H South Off Leash Dog Area and Trail Segment 5B
$682,500
-
-
♦ $1,400,000
-
-
$1,400,000
$10,390,000
$8,572,000
$7,300,000
$3,490,000
$3,300,000
Schools Traffic Safety Program
Total
I-19
FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM ENTERPRISE PROJECTS New projects in italics Project ID
District
5545
2
5582
2
5570
4
5537
3
5501
2,3
5544
2
5215
2
5559
2
5552
2
5048
2
5063
2
5203
3
5217
3
5007
Citywide
2706
Type Project Name
Agua Hedionda Lift Station Biological Monitoring and Maintenance Avenida Encinas and Cannon Road Sewer Replacement
Batiquitos Lift Station Improvements Buena Interceptor Sewer Access Road Improvements Buena Interceptor Sewer Improvements Buena Interceptor Sewer Realignment - East Segment C Tank Access Road and Electrical Improvements Cannon Lift Station Redundant Force Main Cannon Road Lift Station Improvements Carlsbad Boulevard Waterline Replacement at Terramar Carlsbad Municipal Water District Building and Site Improvements Carlsbad Water Recycling Facility (Encina Capital Projects) Carlsbad Water Recycling Facility Improvements
Cathodic Protection Program Chinquapin Lift Station Force Main Improvements
Estimated 2027-28
Estimated 2028-29
Estimated 2029-30
Estimated 2030-31
Estimated 5-Year Total
$225,000
-
-
-
-
-
$0
-
$140,000
$1,500,000
-
-
-
$1,640,000
-
$400,000
$500,000
$9,000,000
-
-
$9,900,000
$100,000
-
$432,000
-
-
-
$432,000
$1,758,686
-
-
$650,000
-
-
$650,000
$1,907,000
-
-
$400,000
$5,625,000
-
$6,025,000
$300,000
$23,000
$1,300,000
-
-
-
$1,323,000
$200,000
-
$750,000
$5,500,000
-
-
$6,250,000
$1,490,000
$35,000
-
-
-
-
$35,000
$6,480,100
-
-
-
-
-
$0
$800,000
$300,000
$4,500,000
-
-
-
$4,800,000
$6,175,654
-
-
$414,000
$434,000
$449,000
$1,297,000
$350,000
$70,000
$3,307,000
-
-
-
$3,377,000
$2,566,700
$200,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$4,200,000
-
-
$200,000
$300,000
$2,500,000
-
$3,000,000
$200,000
-
-
-
-
$200,000
-
$50,000
$960,000
-
-
-
$1,010,000
$278,383
-
$1,802,000
-
-
-
$1,802,000
$312,600
-
$1,802,000
-
-
-
$1,802,000
$185,000
$25,000
-
$740,000
-
-
$765,000
DMP Facility AAA (Jefferson Street)
-
-
-
-
-
-
$0
1
DMP Facility AAAA (Madison Street)
-
-
-
-
-
-
$0
1
DMP Facility AC (Highland Drive Drainage Project)
1
5580
1
Chinquapin Sewer Improvements
2
College Boulevard - Cannon Road To Badger Lane (375 Zone)
5012
2
College Boulevard - Cannon Road To Badger Lane (490 Zone)
5033
1
Crestview Drive Transmission Main
201923
1
201924 6609
Requested 2026-27
$1,670,000
1
5554
5013
Prior Appropriation
201925
2
201926
2
201927
1
201928
Chinquapin Lift Station Improvements
DMP Facility AFA (Hidden Valley Drainage Restoration and DMP Facility AFB (Calavera Hills Drainage Restoration and DMP Facility BB 1 and 2 (Washington Street)
-
-
-
-
-
-
$0
-
-
-
-
-
-
$0
-
-
-
-
-
-
$0
-
-
-
-
-
-
$0
1
DMP Facility BCB (Magnolia Avenue)
-
-
-
-
-
-
$0
201929
1
DMP Facility BFB-L and BFB-1 (Tamarack and El Camino Real Plda
-
-
-
-
-
-
$0
6622
1
DMP Facility BFB-U (El Camino Real)
$153,489
-
-
-
-
-
$0
201930
2
DMP Facility BL-L (College Boulevard Bridge Reimbursement Plda "B")
-
-
-
-
-
-
$0
201931
2
DMP Facility BL-U (College Boulevard)
-
-
-
-
-
-
$0
201932
2
DMP Facility BM (Cantarini/College Boulevard Box Culvert)
-
-
-
-
-
-
$0
201933
2
DMP Facility BQ (Sunny Creek)
-
-
-
-
-
-
$0
201934
2
DMP Facility BR (Cantarini/College Boulevard Pipe Drainage)
-
-
-
-
-
-
$0
201935
3
DMP Facility C2 (Paseo Del Norte)
-
-
-
-
-
-
$0
-
-
-
-
-
$0
201936
3
DMP Facility CA (Avenida Encinas)
-
201937
4
DMP Facility DBA (Poinsettia Village)
-
-
-
-
-
-
$0
201938
4
DMP Facility DBB (Avenida Encinas)
-
-
-
-
-
-
$0
-
-
-
-
-
-
$0
-
-
-
-
-
-
$0
201939 201940
4 3
I-20
DMP Facility DFA (Batiquitos Lagoon Stormwater Treatment) DMP Facility DH (Altiva Place Canyon Restoration)
FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM ENTERPRISE PROJECTS New projects in italics Project ID
6623 5218 5553 2605 5801 5539 5557 5560 5059 5558 5540 5035 5009 5001 5547 5520 5581 5556 5020 5211 5216 5212 5024 5057 5046 5542 5513 3840 5548 5546 5504 5503 5008 5549 5535 3949 3950 5551 5555 5051
District
Type Project Name
Prior Appropriation
Requested 2026-27
Estimated 2027-28
Estimated 2028-29
Estimated 2029-30
Estimated 2030-31
Estimated 5-Year Total
Citywide
Drainage Master Plan Update
$1,281,000
-
-
-
-
-
$0
3
D-Site Recycled Water Pump Rehabilitation
$300,000
-
-
-
-
-
$0
2
El Fuerte Lift Station Improvements
$425,000
-
$212,000
$764,000
-
-
$976,000
2
El Fuerte Lift Station Redundant Force Main
-
-
-
$1,060,000
$4,240,000
-
$5,300,000
$75,193,401
$4,454,000
$10,125,000
$6,933,000
$5,425,000
$6,836,000
$33,773,000
$3,434,400
($3,237,000)
$983,000
$3,399,000
-
-
$1,145,000
$1,200,000
$1,500,000
-
-
-
-
$1,500,000
-
$300,000
$5,000,000
-
-
$5,300,000
Citywide 2 1
Encina Capital Projects (EWPCF) Faraday and El Camino Real Sewer Replacement - Orion to Palomar Harding Street Sewer and Utility Improvements
1
Home Plant Lift Station Improvements
$400,000
2
Hydroelectric Generation at Water Facilities
$500,000
-
-
-
-
-
$0
1
Jefferson Street Sewer Replacement
$1,500,000
$740,000
-
-
-
-
$740,000
2
Las Palmas Trunk Sewer
$301,000
-
$300,000
$1,500,000
$1,500,000
-
$3,300,000
1,3
Limited Access Pipeline Relocation Program
$7,751,000
$465,000
-
$620,000
-
$3,230,000
$4,315,000
2
Maerkle Facility Improvements
$4,091,200
-
-
-
-
-
$0
2
Maerkle Reservoir Transmission Main
$195,000
$600,000
-
-
$7,300,000
-
$7,900,000
$352,000
$26,000
-
-
-
-
$26,000
$358,000
$300,000
-
-
-
-
$300,000
-
$325,000
-
$980,000
-
$4,020,000
$5,325,000
4 Citywide 2
North Batiquitos Access Road Improvement Odor and Corrosion Prevention Program Poinsettia Lift Station Redundant Force Main
2
Poinsettia Lift Station Rehabilitation
$788,000
$15,000
-
-
$16,000,000
-
$16,015,000
Citywide
Pressure Reducing Station Program
$7,031,040
$1,200,000
$6,320,000
$500,000
$500,000
$500,000
$9,020,000
$850,000
$53,000
$53,000
$53,000
$53,000
$53,000
$265,000
$1,050,000
$371,000
$371,000
$371,000
$371,000
$371,000
$1,855,000
$380,000
$132,500
$133,000
$133,000
$133,000
$133,000
$664,500
$8,635,000
$4,565,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$8,565,000
$32,000
-
-
$378,000
-
$410,000
Citywide 2 Citywide Citywide
Recycled Water Condition Assessment Program Recycled Water System Rehabilitation and Replacement Recycled Water Valve and Appurtenance Replacement Program Reservoir Maintenance and Repair Program
N/A
Santa Fe II Inlet Pipeline
$529,650
3
Santa Fe II Reservoir Site Electrical Improvements
$333,581
-
-
-
-
-
$0
$17,236,898
-
-
-
-
-
$0
Citywide
SCADA Improvements
Citywide
Sewer Condition Assessment
$1,708,000
$100,000
$105,000
$158,000
$158,000
$158,000
$679,000
Citywide
Sewer Lift Station Repairs and Upgrades
$5,175,380
$186,000
$186,000
$186,000
$186,000
$186,000
$930,000
Sewer Line Capacity Improvements
$5,690,045
$500,000
$6,000,000
$500,000
$6,000,000
$500,000
$13,500,000
$200,000
-
-
-
-
-
$0
3 Citywide
Sewer Modeling
Citywide
Sewer Monitoring Program (Capacity)
Citywide 2 2,3 1 Citywide 1 2 2,3 Citywide
Sewer System Rehabilitation and Replacement Tri-Agency Water Transmission Pipeline Replacement Vallecitos Interceptor Sewer Cleaning and CCTV Vista Carlsbad Interceptor - Buena Vista Lift Station Improvements Vista Carlsbad Interceptor - Reach VC14 To VC15
Vista Carlsbad Interceptor - Reach VC3 Vista Carlsbad Interceptor Rehabilitation (VC1 and VC2) Vista/Carlsbad Interceptor - Point Repair Reaches (VC13 & VC14) Water Infrastructure Condition Assessment Program
$686,000
-
-
-
-
-
$0
$14,426,475
$2,279,000
$2,279,000
$2,279,000
$2,279,000
$2,279,000
$11,395,000
$2,608,970
-
$553,000
-
$4,596,000
-
$5,149,000
$890,000
-
-
-
-
-
$0
$997,800
$80,000
$326,000
$4,218,000
-
-
$4,624,000
$21,362,390
-
-
-
-
-
$0
$111,000
$80,000
$220,000
$984,000
$1,397,000
-
$2,681,000
$311,000
$140,000
-
-
-
-
$140,000
$3,000,000
-
-
-
-
-
$0
$3,440,000
-
$450,000
$450,000
$450,000
$450,000
$1,800,000
I-21
FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM ENTERPRISE PROJECTS New projects in italics Project ID
5058 5064 3904 5019
District
Type Project Name
Citywide
Water Modeling
Citywide
Water System Improvements
Citywide Citywide
Prior Appropriation
Water System Rehabilitation and Replacement Water Valve Repair/Replacement Program
Total
I-22
Requested 2026-27
Estimated 2027-28
Estimated 2028-29
Estimated 2029-30
Estimated 2030-31
Estimated 5-Year Total
$375,000
-
-
-
-
-
$0
-
$500,000
$6,000,000
$500,000
$6,000,000
-
$13,000,000
$22,258,366
$950,000
$3,680,000
$3,680,000
$3,680,000
$3,680,000
$15,670,000
$11,367,000
$1,085,000
$1,085,000
$1,085,000
$1,085,000
$1,085,000
$5,425,000
$18,884,500
$58,734,000
$54,357,000
$72,290,000
$25,930,000
FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM MAINTENANCE PROJECTS New projects in italics Project ID
District
Type Project Name
Prior Appropriation
Requested 2026-27
Estimated 2027-28
Estimated 2028-29
Estimated 2029-30
Estimated 2030-31
Estimated 5-Year Total
Non-Recurring 4733
2
Alga Norte Park Modifications
6063
3
Carlsbad Boulevard Emergency Repair
$2,911,464
-
-
-
-
-
$0
$841,000
-
-
-
-
-
$0
201912
1
Carlsbad Village Drive and Grand Avenue Pedestrian and Crossing
-
-
-
$170,000
$1,150,000
-
$1,320,000
4727
Citywide
City Facility Accessibility Upgrades
$500,000
-
-
-
-
-
$0
6616
Citywide
City Fire Stations Wash Water BMPs
$280,000
-
-
-
-
-
$0
6326
Citywide
Coordinated Traffic Signal Program
$4,383,979
-
-
-
-
-
$0
6622
1
DMP Facility BFB-U (El Camino Real)
$1,000,000
-
$8,536,000
$70,000
$80,000
$80,000
$8,766,000
4771
3
Dove Library Central Plant Refurbishment
-
$200,000
$1,400,000
-
-
-
$1,600,000
4760
1
Downtown Tile Replacement
$250,000
-
-
-
-
-
$0
6099
2
Faraday Avenue Improvements
$1,575,000
-
-
-
-
-
$0
4720
2
Faraday Center Refurbishment
$3,154,380
-
-
-
-
-
$0
4759
2
Fire Station 5 Renovation
$2,450,000
$5,000,000
-
-
-
-
$5,000,000
$250,000
-
-
-
-
-
$0
$150,000
-
-
-
-
-
$0
Flower Fields Overlook Sidewalk Replacement Guardrail Replacement and Improvement Study
6114
2
6087
Citywide
4708
1
Harding Center Refurbishment
$817,000
$40,000
$168,000
-
-
-
$208,000
4728
1
Hosp Grove Park Improvements
$1,682,000
$2,625,000
-
-
-
-
$2,625,000
6606
1
Kelly Drive Channel Repair
$3,641,000
-
-
$1,500,000
-
-
$1,500,000
6630
4
La Costa Avenue Box Culvert Cleaning
$275,000
-
-
-
-
-
$0
4772
2
Leo Carrillo Ranch Stair Replacement
-
$500,000
-
-
-
-
$500,000
4764
1
Library Learning Center Renovation
$100,000
$1,660,000
$400,000
-
-
-
$2,060,000
4758
1
Magee Park Building Restoration
$250,000
$550,000
-
-
-
-
$550,000
6614
4
Marca Place Drainage Improvements
$65,000
-
-
-
-
-
$0
$3,954,056
$1,115,000
$2,073,000
$1,779,000
$3,638,000
$669,000
$9,274,000
$440,000
$980,000
-
-
-
-
$980,000
$350,000
-
-
-
-
-
$0
$247,005
$360,000
-
-
-
-
$360,000
$3,158,000
-
-
-
-
-
$0
4613
Citywide
4757
2
6088
4
6079
Citywide
4738
1
4754
1
Senior Center Security Fencing
$300,000
-
-
-
-
-
$0
4761
2
Synthetic Turf Replacement - Alga Norte
$75,000
$3,285,000
-
-
-
-
$3,285,000
4762
2
Synthetic Turf Replacement - Aviara
$68,500
$2,280,000
-
-
-
-
$2,280,000
4763
1
Synthetic Turf Replacement - Pine
$2,320,000
-
-
-
-
-
$0
4614
3
Synthetic Turf Replacement Poinsettia
$2,200,000
-
-
-
-
-
$0
6003
Citywide
Traffic Monitoring Program
$2,225,415
$100,000
$100,000
$100,000
$100,000
$100,000
$500,000
ADA Improvement Program
$4,445,000
$1,058,000
$175,000
$618,000
$215,000
$645,000
$2,711,000
$5,020,844
$600,000
$1,418,000
$623,000
$1,535,000
$773,000
$4,949,000
$1,768,000
-
$4,600,000
$830,000
-
-
$5,430,000
$18,372,094
$3,220,000
$700,000
$3,938,000
$830,000
$4,245,000
$12,933,000
Parks Maintenance Program Police and Fire HQ Parking Lot and Exterior Improvements Rancho Santa Fe Trail Slope Improvements Roadway Improvements - Coastal Area Analysis and Implementation Senior Center Repairs and Roof Replacement
Annual Allocation 6049
Citywide
6066
Citywide
6619
1
6608
1
Bridge Preventative Maintenance Program Buena Vista Creek Channel Maintenance at El Camino Real Citywide Drainage Improvement Program
I-23
FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM MAINTENANCE PROJECTS New projects in italics Project ID
District
4769
Citywide
6092
Citywide
6093
Citywide
6013
Citywide
6624
1
5049
2
Prior Appropriation
Type Project Name
Requested 2026-27
Estimated 2027-28
Estimated 2028-29
Estimated 2029-30
Estimated 2030-31
Estimated 5-Year Total
Citywide Facility Arc Flash and Thermal Imaging Safety Program
$100,000
$60,000
Citywide Street Lighting Program
$150,000
-
-
-
-
-
$0
$350,000
-
$150,000
$150,000
$150,000
$150,000
$600,000
$6,810,000
$915,000
$961,000
$1,013,000
$1,061,000
$1,061,000
$5,011,000
$1,155,000
$415,000
$485,000
$555,000
$625,000
$635,000
$2,715,000
Citywide Thermoplastic Pavement Markings Concrete Repair/Replacement Program
Headwall Improvement Program Lake Calavera Reservoir Maintenance
$60,000
$60,000
$60,000
-
$240,000
$755,001
$38,000
$50,000
$50,000
$190,000
$35,000
$363,000
$2,315,000
$351,000
$150,000
$150,000
$150,000
$150,000
$951,000
4723
Citywide
Miscellaneous City Building Improvements
6052
Citywide
Parking Lot Maintenance Program
$2,430,000
$1,600,000
$175,000
$850,000
$175,000
$1,175,000
$3,975,000
6001
Citywide
Pavement Management Program
$77,894,889
$14,388,000
$11,493,000
$12,512,000
$13,222,000
$14,255,000
$65,870,000
6037
Citywide
Retroreflectivity Sign Replacement Program
$1,220,000
-
$120,000
$120,000
$120,000
$120,000
$480,000
6002
Citywide
Sidewalk/Street Construction Program
$4,788,000
$150,000
$3,250,000
$200,000
$900,000
$235,000
$4,735,000
6620
Citywide
Storm Drain Condition Assessment
$1,440,000
-
$350,000
$400,000
$455,000
$500,000
$1,705,000
6607
Citywide
Storm Drain System Rehab and Repair Program
$10,512,360
$800,000
$5,000,000
$610,000
$4,735,000
$755,000
$11,900,000
6062
Citywide
Street Lighting Replacement Program
$3,644,269
-
-
-
-
-
$0
$42,290,000
$41,814,000
$26,298,000
$29,391,000
$25,583,000
Total
I-24
FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM SUBSTANTIALLY COMPLETE (CLOSEOUT) PROJECTS
Project ID
District
6090
2
4747
2
5050
3
Prior Appropriation
Type Project Name
Cannon Road / Sage Creek Road Rehab
Fleet Fuel Island Upgrade Normally Closed Valve (Install Motorized Valve) Park Drive Street and Drainage Improvement Poinsettia Ln - Cassia Rd to Skimmer Ct (Reimbursement Agreement) Police and Fire Headquarters Renovation Stagecoach Community Park Community Gardens
Requested 2026-27
Estimated 2027-28
Estimated 2028-29
Estimated 2029-30
Estimated 2030-31
Estimated 5-Year Total
$155,000
-
-
-
-
-
$0
$5,662,262
-
-
-
-
-
$0
$1,966,000
($300,000)
-
-
-
-
($300,000)
$5,082,439
$200,000
-
-
-
-
$200,000
$600,000
($207,394)
-
-
-
-
($207,394)
$27,733,879
-
-
-
-
-
$0
$645,000
-
-
-
-
-
$0
6611
1
5045
3
4715
2
4611
4
4091
2
Temporary Fire Station 7
$2,022,000
-
-
-
-
-
$0
6107
2
Trieste Slope Repair Project
$3,770,600
-
-
-
-
-
$0
($307,394)
$0
$0
$0
$0
Total
PROJECT ACCOUNTING New projects in italics Prior Appropriation
Requested 2026-27
Estimated 2027-28
Estimated 2028-29
Estimated 2029-30
Estimated 2030-31
Estimated 5-Year Total
Project ID
District
4756
2
Alga Norte Settlement Agreement
$1,983,192
-
-
-
-
-
$0
3649
2
Aviara Reimbursement Agreement
$238,000
-
-
-
-
-
$0
201915
2,3
CFD#1 Administration
-
$110,000
$110,000
$110,000
$110,000
$110,000
$550,000
-
-
-
-
-
-
$0
-
-
-
-
-
-
$0
-
$198,000
$205,000
$212,000
$220,000
$227,000
$1,062,000
$613,000
-
-
-
-
-
$0
$4,015,000
-
-
-
-
-
$0
-
-
-
-
-
-
$0
PA04
Citywide
PA02
Citywide
PA03
Citywide
4755
1
4083
Citywide
Type Project Name
Loan Repay - Park-in-Lieu NE to Public Facility Fee Fund Loan Repay - Park-in-Lieu SW to Public Facility Fee Fund Loan Repay - Sewer Conn to Sewer Repl New Village Arts Tenant Improvements Open Space and Trail Acquisition (Prop C) Recycled Replacement to Recycled Connection
PA07
Citywide
4743
2
Safety Training Center Settlement
$1,156,995
-
-
-
-
-
$0
PA05
Citywide
Traffic Impact Fee Funds to CFD #1
-
$90,000
$90,000
$90,000
$90,000
$90,000
$450,000
$398,000
$405,000
$412,000
$420,000
$427,000
Total
I-25
FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM PROGRAM ADJUSTMENTS
▲ Completed, project account closed △ Combined, project scope incorporated into other existing projects ▼ Cancelled, project no longer warranted Project ID
District
6629
2
6004
2,3
6619
1
4746
2
4601
2
6097
1
5054
2
4752
2
Prior Appropriation
Type Project Name
▼ Agua Hedionda Creek Maintenance ▲ Avenida Encinas Coastal Rail Trail and Pedestrian Improvements ▼ Buena Vista Creek Channel Maintenance at El Camino Real ▲ Calavera Hills Community Center Refurbishment ▲ Calavera Hills Community Park Gateway Improvements ▲ Carlsbad Boulevard Pedestrian Improvement Project ▲ Lake Calavera Outlet Improvements ▲ Las Palmas Roof Replacement ▼ Maerkle Reservoir Solar Feasibility Study ▲ Palomar Airport Waterline Realignment ▲ Poinsettia Community Park - Phase 4 - Dog Park ▼ Rancho Carlsbad Groundwater Supply
Requested 2026-27
Estimated 2027-28
Estimated 2028-29
Estimated 2029-30
Estimated 2030-31
Estimated 5-Year Total
$973,000
($588,979)
-
-
-
-
($588,979)
$1,776,000
-
-
-
-
-
$0
$1,250,000
($784,165)
-
-
-
-
($784,165)
$1,985,000
($543,085)
-
-
-
-
($543,085)
$1,407,850
($18,033)
-
-
-
-
($18,033)
$1,647,488
($298,231)
-
-
-
-
($298,231)
$1,436,001
($174,154)
-
-
-
-
($174,154)
$630,000
($85,561)
-
-
-
-
($85,561)
$518,170
($497,582)
-
-
-
-
($497,582)
$2,333,000
($439,150)
-
-
-
-
($439,150)
$2,838,140
($18,670)
-
-
-
-
($18,670)
-
-
-
-
-
-
$0
4722
2
5055
2
4608
3
5061
2
5208
Citywide
▲ Recycled Water Phase 3 - Pipelines
$19,150,221
($1,358,549)
-
-
-
-
($1,358,549)
5210
3
▲ Recycled Water Phase 3 - Reservoir
$7,033,000
($166,130)
-
-
-
-
($166,130)
▼ San Luis Rey Mission Basin Groundwater Supply ▲ Schulman Auditorium and Cannon Art Gallery ▲ Stagecoach Park Synthetic Turf Replacement
-
-
-
-
-
-
$0
$2,820,000
($118,530)
-
-
-
-
($118,530)
$2,696,000
($991,763)
-
-
-
-
($991,763)
5044
Citywide
4753
3
4742
4
6636
2,3,4
▲ Traffic Signal Right Turn Overlaps
$150,000
($133,783)
-
-
-
-
($133,783)
2
▲ Vista Carlsbad Interceptor - Agua Hedionda LS & Forcemain VC12-VC13
$33,229,776
($512,684)
-
-
-
-
($512,684)
($6,729,049)
$0
$0
$0
$0
3492
Total
I-26
FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM REQUESTED APPROPRIATION SUMMARY Fiscal Year
2026-27
2027-28
2028-29
2029-30
2030-31
Estimated 5-Year Total
Requested Appropriation
$ 59,069,184 $ 104,075,000 $
85,292,000 $ 106,164,000 $ 68,157,000 $
422,757,184
Estimated Future Costs
$ 27,624,000 $
30,846,000 $
3,755,000 $
111,403,000
Total: Requested Appropriation + $ 86,693,184 $ 150,063,000 $ 116,138,000 $ 109,354,000 $ 71,912,000 $ Future Costs
534,160,184
45,988,000 $
3,190,000 $
Requested Appropriation does not include construction amounts for Strategic Plan and Critical Need projects. It does include full amounts for Maintenance and Enterprise projects and any program adjustments as shown.
I-27
I-28
CAPITAL IMPROVEMENT PROGRAM 15-YEAR FORECAST COMMUNITY FACILITIES DISTRICT NO. 1 (CFD 1)
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 63,929,399
YEAR 2 2027-28 69,975,489
YEAR 3 2028-29 47,831,065
YEAR 4 2029-30 25,472,433
YEAR 5 2030-2031 27,713,156
YEAR 6-15 2032-41 48,726,835
REVENUES Developer Special Taxes Total Revenues
N/A
6,156,090 6,156,090
2,886,576 2,886,576
2,672,367 2,672,367
2,350,723 2,350,723
36,623,679 36,623,679
36,901,467 36,901,467
CAPITAL PROJECTS CFD#1 Administration City Hall Complex Orion Center Veteran's Memorial Park (All Quadrants) Total Project Expenditures
1,028,105 9,657,729 49,168,157 59,853,991
110,000 110,000
110,000 24,921,000 25,031,000
110,000 24,921,000 25,031,000
110,000 110,000
110,000 15,500,000 15,610,000
100,000,000 100,000,000
ENDING FUND BALANCE
N/A
69,975,489
47,831,065
25,472,433
27,713,156
48,726,835
(14,371,698)
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 8,613,290
YEAR 2 2027-28 763,445
YEAR 3 2028-29 (470,599)
YEAR 4 2029-30 616,034
YEAR 5 2030-2031 1,669,953
YEAR 6-15 2032-41 (125,961)
REVENUES Gas Tax and Prop 42 Funds Total Revenues
N/A
3,419,140 3,419,140
3,333,956 3,333,956
3,334,633 3,334,633
3,328,919 3,328,919
3,314,086 3,314,086
33,140,865 33,140,865
CAPITAL PROJECTS ADA Parking Space Modifications Barrio Street Lighting Barrio Street Calming Camino De Los Coches and La Costa Avenue Intersection Control Cannon Road / Sage Creek Road Rehab Carlsbad Blvd And Tamarack Avenue Pedestrian Improvements Carlsbad Boulevard Emergency Repair Carlsbad Blvd Pedestrian Improvement Project Carlsbad Village Drive Widening - Pontiac Drive to Victoria Avenue Citywide Drainage Improvement Program Citywide Street Lighting Program Citywide Thermoplastic Pavement Markings Concrete Repair/Replacement Program El Camino Real Widening - Arenal Road to La Costa Avenue El Camino Real Widening - Sunny Creek to Jackspar Guardrail Replacement And Improvement Program Kelly Drive and Park Drive Complete Street Improvements La Costa Avenue Traffic Improvements Laguna Drive Storm Drain Marca Place Drainage Improvements Park Drive Drainage And Street Improvements Paseo Del Norte Pedestrian and Bike Improvements Pavement Management Program Retroreflectivity Sign Replacement Program Roadway Slope Stabilization Schools Traffic Safety Program Sidewalk/Street Construction Program Sustainable Mobility Plan Implementation Program Traffic Improvement Program Traffic Monitoring Program Traffic Signal - Maverick Way & Camino De Los Coches Traffic Signal Right Turn Overlaps Total Project Expenditures
150,000 159,001 350,000 155,003 1,771,001 841,002 1,055,887 6,090,594 150,000 350,000 3,643,001 1,450,000 366,051 150,000 272 12,458 256,000 65,000 3,965,003 65,490 8,125,849 1,220,000 1,279,998 250,000 2,338,000 710,567 2,388,003 480,000 490,000 150,000 38,478,179
300,000 2,600,000 (298,232) 520,000 3,000,000 350,000 1,000,000 200,000 700,000 2,132,000 150,000 400,000 100,000 249,000 (133,783) 11,268,985
150,000 548,000 120,000 3,250,000 400,000 100,000 4,568,000
700,000 150,000 578,000 120,000 200,000 400,000 100,000 2,248,000
150,000 605,000 120,000 900,000 400,000 100,000 2,275,000
2,500,000 150,000 605,000 1,000,000 120,000 235,000 400,000 100,000 5,110,000
1,500,000 5,845,000 200,000 109,000 1,494,000 1,200,000 3,670,000 4,000,000 1,000,000 19,018,000
ENDING FUND BALANCE
N/A
763,445
(470,599)
616,034
1,669,953
(125,961)
13,996,904
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 724,371
YEAR 2 2027-28 597,486
YEAR 3 2028-29 850,061
YEAR 4 2029-30 1,083,146
YEAR 5 2030-2031 1,309,294
YEAR 6-15 2032-41 1,546,802
REVENUES Gas Tax (RMRA) Revenues Total Revenues
N/A
3,265,115 3,265,115
3,418,575 3,418,575
3,586,085 3,586,085
3,776,148 3,776,148
3,972,508 3,972,508
49,602,131 49,602,131
CAPITAL PROJECTS Concrete Repair/Replacement Program Pavement Management Program Total Project Expenditures
3,166,999 17,686,001 20,853,000
395,000 2,997,000 3,392,000
413,000 2,753,000 3,166,000
435,000 2,918,000 3,353,000
456,000 3,094,000 3,550,000
456,000 3,279,000 3,735,000
4,410,000 33,771,000 38,181,000
ENDING FUND BALANCE
N/A
597,486
850,061
1,083,146
1,309,294
1,546,802
12,967,933
GAS TAX FUND
GAS TAX (ROAD MAINTENANCE AND REHABILITATION ACCOUNT)
I-29
GENERAL CAPITAL CONSTRUCTION (GCC)
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 34,122,753
YEAR 2 2027-28 32,778,791
YEAR 3 2028-29 26,140,473
YEAR 4 2029-30 31,379,379
YEAR 5 2030-2031 32,172,734
YEAR 6-15 2032-41 37,587,639
REVENUES Transfer from General Fund Total Revenues
N/A
4,990,362 4,990,362
5,171,682 5,171,682
5,348,906 5,348,906
5,526,355 5,526,355
5,704,905 5,704,905
62,248,450 62,248,450
CAPITAL PROJECTS ADA Beach Access - Pine to Tamarack Alga Norte Park Modifications Alga Norte Settlement Agreement Assessment District 97-1 Maintenance Avenida Encinas Coastal Rail Trail and Pedestrian Improvements Barrio Parking Improvements Project Barrio Street Lighting Barrio Traffic Calming Beach Access Repair and Upgrades - Pine Avenue to Tamarack Buena Vista Creek Concrete Channel Maintenance at El Camino Real Calavera Hills Community Park Gateway Improvements Cannon Park Restroom Carlsbad Village Drive and Grand Ave. Pedestrian & Crossing Improvements Carlsbad Village Drive Reconfiguration Chestnut Underpass Public Art Project City Facility Accessibility Upgrades City Fire Stations Wash Water BMPs Citywide Facility Arc Flash and Thermal Imaging Safety Program El Camino Real Widening - Poinsettia Lane to Camino Vida Roble Faraday Avenue Improvements Fire Station No. 7 Fleet Fuel Island Upgrade Fleet Maintenance Refurbishment Grand Avenue Promenade La Costa Avenue Box Culvert Cleaning Lake Calavera Outlet Improvements Lake Calavera Reservoir Maintenance Monroe Street Pool Replacement New Village Arts Tenant Improvements Ocean Street Reconfiguration Concepts Study Open Space and Trail Acquisition (Prop C) Orion Center Orion Complex Energy Storage Park Drive Street and Drainage Improvement Pavement Management Program Police and Fire Headquarters Renovation Police and Fire HQ Parking Lot and Exterior Improvements Rancho Santa Fe Trail Slope Improvements Roadway Improvements - Coastal Area Analysis and Implementation Safety Training Center Emergency Backup Generator Safety Training Center Settlement South Shore Agua Hedionda Lagoon Trail Street Lighting Replacement Program Temporary Fire Station No. 7 Terramar Area Coastal Improvements Traffic Improvement Program Traffic Signal Cabinet Upgrades Trieste Slope Repair Project Tyler Street Sidewalk Improvement Project Utility Undergrounding Program Study Village Intelligent Parking Implementation Village Lighting - Carlsbad Village Dr. from Harding St. to Ocean St. Village Lighting - Gateway Lighting Village Lighting - Hospitality District Village Lighting - Pedestrian Lampposts Oak Avenue Village Lighting - Pedestrian Lighting at Village Outskirts Village Lighting - State Street, Madison, Roosevelt, and Washington Village Lighting - Train Station Area Total Project Expenditures
1,143,801 1,424,000 1,983,192 420,001 285,700 474,299 414,998 6,899,001 1,249,999 1,407,853 45,765 350,000 400,000 500,000 279,999 100,000 1,575,000 100,000 400,000 896,100 300,000 275,000 1,436,002 755,006 10,619,613 613,000 4,015,000 99,000 1,117,439 14,511,887 440,002 350,000 200,000 1,156,994 789,941 319,270 900,000 1,000,000 1,800,001 180,001 3,770,599 970,000 145 1,103,854 67,072,463
3,000,000 340,000 (169,172) (784,166) (18,033) 60,000 1,700,000 (174,154) 38,000 250,000 980,000 1,000,000 (998,151) 1,110,000 6,334,324
10,000,000 200,000 1,500,000 60,000 50,000 11,810,000
60,000 50,000 110,000
920,000 60,000 190,000 400,000 63,000 1,050,000 600,000 950,000 500,000 4,733,000
35,000 255,000 290,000
10,500,000 500,000 100,000 600,000 950,000 12,650,000
N/A
32,778,791
26,140,473
31,379,379
32,172,734
37,587,639
87,186,089
I-30
GRANTS - FEDERAL
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 (9,860,908)
REVENUES Grant Revenue Total Revenues
N/A
9,860,908 9,860,908
CAPITAL PROJECTS Avenida Encinas Coastal Rail Trail and Pedestrian Improvements Barrio Street Lighting Carlsbad Boulevard Pedestrian Improvement Project El Camino Real Widening - Poinsettia Lane to Camino Vida Roble Schools Traffic Safety Program Veteran's Memorial Park (All Quadrants) Village and Barrio Traffic Circles Total Project Expenditures
2,500,000 1,440,001 850,000 3,000,000 2,500,000 10,290,000
ENDING FUND BALANCE
N/A
YEAR 2 2027-28
YEAR 3 2028-29
YEAR 4 2029-30
-
-
-
YEAR 5 2030-2031 -
YEAR 6-15 2032-41
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
GRANTS - STATE
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 (5,534,510)
REVENUES Grant Revenue Total Revenues
N/A
5,534,510 5,534,510
CAPITAL PROJECTS Avenida Encinas Coastal Rail Trail and Pedestrian Improvements Carlsbad Boulevard Pedestrian Improvement Project Paseo Del Norte Pedestrian and Bike Improvements Veteran's Memorial Park (All Quadrants) Total Project Expenditures
1,776,000 591,600 534,510 5,000,000 7,902,110
ENDING FUND BALANCE
N/A
YEAR 2 2027-28
YEAR 3 2028-29
YEAR 4 2029-30
-
-
-
YEAR 5 2030-2031 -
YEAR 6-15 2032-41
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
I-31
INFRASTRUCTURE MAINTENANCE & REPLACEMENT
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 65,518,777
YEAR 2 2027-28 45,051,058
YEAR 3 2028-29 18,545,740
YEAR 4 2029-30 5,602,646
YEAR 5 2030-2031 (4,461,999)
YEAR 6-15 2032-41 (11,360,094)
REVENUES Grant Revenue Transfer from General Fund Total Revenues
N/A
500,000 4,990,362 5,490,362
5,171,682 5,171,682
5,348,906 5,348,906
5,526,355 5,526,355
5,704,905 5,704,905
62,248,450 62,248,450
CAPITAL PROJECTS Agua Hedionda Creek Maintenance Alga Norte Park Modifications Beach Access Repair and Upgrades - Pine Avenue to Tamarack Bridge Preventative Maintenance Program Buena Vista Creek Concrete Channel Maintenance at El Camino Real Calavera Hills Community Center Refurbishment City Facility Safety and Parking Lot Lighting Assessment Citywide Community Parks' Playgrounds Replacements/Upgrades Citywide Drainage Improvement Program Citywide Facilities Nonfunctional Turf Removal and Replacement Coordinated Traffic Signal Program DMP Facility BFB-U (El Camino Real) Dove Library Central Plant Refurbishment Downtown Tile Replacement Faraday Center Refurbishment Fire Station 5 Renovation Fleet Fuel Island Upgrade Fleet Maintenance Refurbishment Flower Fields Overlook Sidewalk Replacement Harding Center Refurbishment Headwall Replacement Program Hosp Grove Park Improvements Hosp Grove Park Improvements Kelly Drive Channel Repair Las Palmas Roof Replacement Library Learning Center Renovation Magee Park Building Restoration Miscellaneous City Building Improvements Monroe Street Pool Replacement Parking Lot Maintenance Program Parks Maintenance Program Pavement Management Program Police and Fire Headquarters Central Plant Repair Project Police and Fire Headquarters Renovation Schulman Auditorium and Cannon Art Gallery Senior Center Repairs and Roof Replacement Senior Center Security Fencing Stagecoach Park Synthetic Turf Replacement Storm Drain Condition Assessment Storm Drain System Rehab and Repair Program Synthetic Turf Replacement - Alga Norte Synthetic Turf Replacement - Aviara Synthetic Turf Replacement - Pine Synthetic Turf Replacement - Poinsettia Trash Amendment Compliance Program Total Project Expenditures
973,003 1,487,464 6,612,751 5,020,844 1,768,001 1,985,000 1,910,001 50,000 12,281,502 350,000 800,000 1,000,003 250,000 3,154,381 2,450,001 5,262,264 2,574,004 250,000 817,001 1,155,002 1,562,000 120,000 3,641,006 630,000 100,000 250,000 2,315,000 6,848,143 2,430,000 3,954,056 2,000,000 609,330 13,221,990 2,820,001 3,158,001 300,000 2,696,001 1,440,001 10,512,362 75,000 68,500 2,320,000 2,199,999 630,001 114,052,614
(588,979) 600,000 (543,085) 650,000 1,375,000 3,220,000 995,000 200,000 5,000,000 3,000,000 40,000 415,000 (85,561) 1,660,000 550,000 351,000 1,600,000 1,115,000 (200,000) (118,531) (991,763) 800,000 3,285,000 2,280,000 1,350,000 25,958,081
1,418,000 4,600,000 3,250,000 700,000 8,536,000 1,400,000 168,000 485,000 400,000 150,000 175,000 2,073,000 2,472,000 350,000 5,000,000 500,000 31,677,000
623,000 830,000 2,250,000 3,938,000 70,000 555,000 1,500,000 150,000 850,000 1,779,000 2,662,000 400,000 610,000 2,075,000 18,292,000
1,535,000 830,000 80,000 625,000 150,000 175,000 3,638,000 2,928,000 455,000 4,735,000 440,000 15,591,000
773,000 4,245,000 80,000 635,000 150,000 1,175,000 669,000 3,104,000 500,000 755,000 517,000 12,603,000
14,164,000 45,290,000 800,000 8,250,000 1,500,000 4,347,000 11,192,000 35,519,000 5,375,000 23,200,000 149,637,000
ENDING FUND BALANCE
N/A
45,051,058
18,545,740
5,602,646
(4,461,999)
(11,360,094)
(98,748,644)
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 2,262,500
YEAR 2 2027-28 122,500
YEAR 3 2028-29 122,500
YEAR 4 2029-30 122,500
YEAR 5 2030-2031 122,500
YEAR 6-15 2032-41 122,500
REVENUES Other Financing Sources Total Revenues
N/A
OTHER
CAPITAL PROJECTS College Boulevard Extension Total Project Expenditures ENDING FUND BALANCE
I-32
429,863 429,863 N/A
-
-
-
-
-
-
2,140,000 2,140,000
-
-
-
-
-
122,500
122,500
122,500
122,500
122,500
122,500
PARKING IN LIEU
BEGINNING FUND BALANCE
PRIOR YEARS N/A
REVENUES Other Financing Sources Total Revenues
N/A
CAPITAL PROJECTS Roadway Improvements - Coastal Area Analysis and Implementation Total Project Expenditures ENDING FUND BALANCE
47,005 47,005 N/A
-
-
-
YEAR 5 2030-2031 -
-
-
-
-
-
-
360,000 360,000
-
-
-
-
-
-
-
-
-
-
-
YEAR 1 2026-27 360,000
YEAR 2 2027-28
YEAR 4 2029-30
YEAR 3 2028-29
YEAR 6-15 2032-41 -
PARK-IN-LIEU NE YEAR 1 2026-27 3,235,903
YEAR 2 2027-28 3,235,903
YEAR 4 2029-30 6,802,543
YEAR 5 2030-2031 7,288,903
YEAR 6-15 2032-41 7,775,263
-
486,360 486,360
486,360 486,360
10,916,080 10,916,080
-
-
-
4,550,000 4,550,000
BEGINNING FUND BALANCE (1)
PRIOR YEARS N/A
REVENUES Developer Fees Total Revenues
N/A
-
CAPITAL PROJECTS Loan - Park-in-Lieu NE to Public Facility Fee Fund for Park Site Acquisition Robertson Ranch Park Development Total Project Expenditures
2,107,001 2,107,001
-
ENDING FUND BALANCE
N/A
3,235,903
6,802,543
6,802,543
7,288,903
7,775,263
14,141,343
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 1,646,420
YEAR 2 2027-28 6,642,372
YEAR 3 2028-29 7,097,412
YEAR 4 2029-30 7,752,452
YEAR 5 2030-2031 7,407,492
YEAR 6-15 2032-41 8,012,532
REVENUES Developer Fees Total Revenues
N/A
7,770,952 7,770,952
1,405,040 1,405,040
1,405,040 1,405,040
1,405,040 1,405,040
1,405,040 1,405,040
38,800,720 38,800,720
CAPITAL PROJECTS City Facility Safety and Parking Lot Lighting Assessment Hosp Grove Park Improvements Monroe Street Pool Replacement Northwest Quadrant Older Parks Rehabilitation and Improvement Total Project Expenditures
200,000 2,697,225 350,000 3,247,225
150,000 2,625,000 2,775,000
950,000 950,000
750,000 750,000
1,750,000 1,750,000
800,000 800,000
ENDING FUND BALANCE
N/A
6,642,372
7,097,412
7,752,452
7,407,492
8,012,532
46,813,252
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 1,454,006
YEAR 2 2027-28 4,445,390
YEAR 3 2028-29 3,545,022
YEAR 4 2029-30 3,609,870
YEAR 5 2030-2031 3,609,870
YEAR 6-15 2032-41 3,609,870
REVENUES Developer Fees Total Revenues
N/A
4,031,384 4,031,384
583,632 583,632
64,848 64,848
-
-
540,000 500,000 1,040,000
1,484,000 1,484,000
-
-
-
4,445,390
3,545,022
3,566,640 3,566,640
-
YEAR 3 2028-29 6,802,543
PARK-IN-LIEU NW
-
PARK-IN-LIEU SE
CAPITAL PROJECTS Leo Carrillo Ranch Park Phase 3B Leo Carrillo Ranch Stair Replacement Stagecoach Community Park Community Gardens Total Project Expenditures ENDING FUND BALANCE
350,000 645,000 995,000 N/A
3,609,870
3,609,870
3,609,870
1,264,536 1,264,536
4,874,406
I-33
PARK-IN-LIEU SW
BEGINNING FUND BALANCE
PRIOR YEARS N/A
REVENUES Developer Fees/Loans Total Revenues
N/A
CAPITAL PROJECTS Aviara Reimbursement Agreement Loan Repay - Park-in-Lieu SW to Public Facility Fee Fund Total Project Expenditures
238,001 238,001
YEAR 1 2026-27 1,592,208
YEAR 2 2027-28 1,592,208
YEAR 3 2028-29 1,592,208
-
-
-
-
-
-
YEAR 4 2029-30 1,592,208
1,913,016 1,913,016
-
YEAR 5 2030-2031 3,505,224
YEAR 6-15 2032-41 3,505,224
-
1,264,536 1,264,536
-
1,100,000 1,100,000
N/A
1,592,208
1,592,208
1,592,208
3,505,224
3,505,224
3,669,760
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 4,122,718
YEAR 2 2027-28 4,220,993
YEAR 3 2028-29 4,220,993
YEAR 4 2029-30 4,220,993
YEAR 5 2030-2031 4,220,993
YEAR 6-15 2032-41 4,220,993
REVENUES Developer Fees Total Revenues
N/A
98,276 98,276
-
-
-
-
522,842 522,842
CAPITAL PROJECTS Business Park Recreational Facility (Zone 5 Park) Total Project Expenditures
1,500,000 1,500,000
-
-
-
-
-
16,500,000 16,500,000
ENDING FUND BALANCE
N/A
4,220,993
4,220,993
4,220,993
4,220,993
4,220,993
(11,756,165)
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 1,296,154
YEAR 2 2027-28 1,296,154
YEAR 3 2028-29 1,296,154
YEAR 4 2029-30 1,296,154
YEAR 5 2030-2031 1,296,154
YEAR 6-15 2032-41 1,296,154
REVENUES Developer Fees Total Revenues
N/A
PARK FEE ZONES 5,13,16,17,18
PLANNED LOCAL DRAINAGE AREA A FEES (PLD A)
CAPITAL PROJECTS DMP Facility AAA (Jefferson Street) DMP Facility AAAA (Madison Street) DMP Facility AC (Highland Drive Drainage Project) DMP Facility AFA (Hidden Valley Drainage Restoration and Enhancement Project) DMP Facility AFB (Calavera Hills Drainage Restoration and Enhancement Project) Drainage Master Plan Update Total Project Expenditures ENDING FUND BALANCE
216,511 216,511
-
-
-
-
-
60,878 60,878
-
-
-
-
-
290,000 417,000 922,000 92,000 164,000 1,885,000
N/A
1,296,154
1,296,154
1,296,154
1,296,154
1,296,154
(527,968)
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 1,855,169
YEAR 2 2027-28 2,207,547
YEAR 3 2028-29 2,701,810
YEAR 4 2029-30 2,900,995
YEAR 5 2030-2031 3,162,035
YEAR 6-15 2032-41 3,407,648
REVENUES Developer Fees Total Revenues
N/A
352,378 352,378
494,263 494,263
199,185 199,185
261,040 261,040
245,613 245,613
4,393,164 4,393,164
CAPITAL PROJECTS Agua Hedionda Creek Maintenance College Boulevard Extension DMP Facility BB 1 and 2 (Washington Street) DMP Facility BCB (Magnolia Avenue) DMP Facility BFB-L and BFB-1 (Tamarack and El Camino Real Plda "B") DMP Facility BFB-U (El Camino Real) DMP Facility BL-L (College Boulevard Bridge Reimbursement Plda "B") DMP Facility BL-U (College Boulevard) DMP Facility BM (Cantarini/College Boulevard Box Culvert) DMP Facility BQ (Sunny Creek) DMP Facility BR (Cantarini/College Boulevard Pipe Drainage) Drainage Master Plan Update Total Project Expenditures
3,545,245 153,490 583,000 4,281,735
-
-
-
-
-
1,087,000 469,000 905,000 1,817,000 385,000 205,000 132,000 181,000 5,181,000
ENDING FUND BALANCE
N/A
PLANNED LOCAL DRAINAGE AREA B FEES (PLD B)
I-34
2,207,547
2,701,810
2,900,995
3,162,035
3,407,648
2,619,812
PLANNED LOCAL DRAINAGE AREA C FEES (PLD C)
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 1,722,216
YEAR 2 2027-28 2,325,303
YEAR 3 2028-29 2,331,400
YEAR 4 2029-30 2,339,386
REVENUES Developer Fees Total Revenues
N/A
603,087 603,087
6,097 6,097
7,986 7,986
144,274 144,274
-
1,842,420 1,842,420
-
-
-
-
-
728,000 530,000 1,258,000
CAPITAL PROJECTS DMP Facility C2 (Paseo Del Norte) DMP Facility CA (Avenida Encinas) Drainage Master Plan Update Total Project Expenditures ENDING FUND BALANCE
246,888 246,888
YEAR 5 2030-2031 2,483,660
YEAR 6-15 2032-41 2,483,660
N/A
2,325,303
2,331,400
2,339,386
2,483,660
2,483,660
3,068,080
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 830,375
YEAR 2 2027-28 1,127,312
YEAR 3 2028-29 1,169,731
YEAR 4 2029-30 1,712,809
YEAR 5 2030-2031 1,767,668
YEAR 6-15 2032-41 1,815,585
REVENUES Developer Fees Total Revenues
N/A
296,937 296,937
42,419 42,419
543,079 543,079
54,859 54,859
47,917 47,917
1,440,659 1,440,659
-
-
-
-
-
168,000 430,000 257,000 233,000 1,088,000
PLANNED LOCAL DRAINAGE AREA D FEES (PLD D)
CAPITAL PROJECTS DMP Facility DBA (Poinsettia Village) DMP Facility DBB (Avenida Encinas) DMP Facility DFA (Batiquitos Lagoon Stormwater Treatment) DMP Facility DH (Altive Place Canyon Restoration) Drainage Master Plan Update Total Project Expenditures ENDING FUND BALANCE
234,600 234,600 N/A
1,127,312
1,169,731
1,712,809
1,767,668
1,815,585
2,168,245
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 35,805,001
YEAR 2 2027-28 39,581,977
YEAR 3 2028-29 41,385,588
YEAR 4 2029-30 40,524,362
YEAR 5 2030-2031 42,736,112
YEAR 6-15 2032-41 44,541,343
REVENUES Developer Fees Total Revenues
N/A
8,013,762 8,013,762
3,553,610 3,553,610
2,288,774 2,288,774
3,011,750 3,011,750
1,805,231 1,805,231
48,505,062 48,505,062
CAPITAL PROJECTS Kelly Drive and Park Drive Complete Street Improvements Northwest Quadrant Older Parks Rehabilitation and Improvement Pickleball Courts Poinsettia Community Park - Phase 4 - Dog Park Poinsettia Community Park - Phase 4 - Dog Park Robertson Ranch Park Development South Carlsbad Coastline State Street Parking Lot Electric Vehicle Charging Stations Temporary Fire Station 7 Terramar Area Coastal Improvements Valley and Magnolia Complete Streets Village H South Off Leash Dog Area and Trail Segment 5B Total Project Expenditures
932,728 355,000 2,838,138 637,002 1,121,999 2,450,000 251,000 682,500 9,268,366
950,000 3,305,455 (18,670) 4,236,785
750,000 1,000,000 1,750,000
1,750,000 1,400,000 3,150,000
800,000 800,000
ENDING FUND BALANCE
N/A
39,581,977
41,385,588
40,524,362
42,736,112
PUBLIC FACILITY FEE FUND (PFF)
44,541,343
32,500,000 32,500,000 60,546,405
I-35
SEWER CONNECTION FEE FUND
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 431,387
YEAR 2 2027-28 4,327,247
YEAR 3 2028-29 (65,155)
YEAR 4 2029-30 (17,513,457)
YEAR 5 2030-2031 (22,894,310)
YEAR 6-15 2032-41 (26,792,162)
REVENUES Developer Fees and Miscellaneous Other Agency Contributions (City of Vista) Total Revenues
N/A
1,691,175 1,691,175
790,498 191,100 981,598
523,549 2,308,150 2,831,699
579,147 579,147
339,398 9,750 349,148
7,695,936 7,695,936
CAPITAL PROJECTS Avenida Encinas and Cannon Road Sewer Replacement Buena Interceptor Sewer Improvements Cannon Lift Station Redundant Force Main Chinquapin Sewer Improvements El Fuerte Lift Station Improvements El Fuerte Lift Station Redundant Force Main Faraday and El Camino Real Sewer Replacement - Orion to Palomar Airport Road Harding Street Sewer Improvements Home Plant Lift Station Improvements Jefferson Street Sewer Replacement Las Palmas Trunk Sewer Loan Repay - Sewer Conn to Sewer Repl Poinsettia Lift Station Redundant Force Main Sewer Line Capacity Improvements Sewer Modeling Sewer Monitoring Program (Capacity) Vista Carlsbad Interceptor - Agua Hedionda LS and Forcemain (VC12-VC13) Vista Carlsbad Interceptor - Buena Vista Lift Station Improvements Vista Carlsbad Interceptor - Reach VC14 To VC15 Vista Carlsbad Interceptor - Reach VC3 Total Project Expenditures
550,001 200,000 425,000 3,434,401 1,200,000 400,000 300,000 301,000 199,999 686,000 33,125,776 320,901 21,362,391 111,000 62,616,470
140,000 50,000 (3,237,000) 500,000 148,000 198,000 325,000 (408,685) 80,000 (2,204,685)
1,500,000 750,000 960,000 212,000 983,000 300,000 300,000 205,000 98,000 66,000 5,374,000
5,500,000 764,000 1,060,000 3,399,000 5,000,000 1,500,000 212,000 980,000 1,266,000 599,000 20,280,000
4,240,000 1,500,000 220,000 5,960,000
227,000 4,020,000 4,247,000
2,438,000 264,000 2,702,000
ENDING FUND BALANCE
N/A
4,327,247
(65,155)
(17,513,457)
(22,894,310)
(26,792,162)
(21,798,225)
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 7,265,855
YEAR 2 2027-28 17,128,095
YEAR 3 2028-29 14,461,564
YEAR 4 2029-30 18,164,641
YEAR 5 2030-2031 6,331,267
YEAR 6-15 2032-41 15,358,217
REVENUES Transfer from Sewer Operating Fund and Miscellaneous Total Revenues
N/A
19,065,240 19,065,240
18,892,469 18,892,469
27,446,077 27,446,077
27,736,626 27,736,626
18,985,950 18,985,950
66,574,352 66,574,352
CAPITAL PROJECTS Agua Hedionda Lift Station Biological Monitoring and Maintenance Barrio Traffic Calming Batiquitos Lift Station Improvements Buena Interceptor Sewer Access Road Improvements Buena Interceptor Sewer Improvements Buena Interceptor Sewer Realignment - East Segment Cannon Road Lift Station Improvements Carlsbad Municipal Water District Building and Site Improvements Chinquapin Lift Station Force Main Improvements Chinquapin Lift Station Improvements Encina Capital Projects (EWPCF) Home Plant Lift Station Improvements Jefferson Street Sewer Replacement North Batiquitos Access Road Improvement Odor and Corrosion Prevention Assessment Orion Center Poinsettia Lift Station Rehabilitation SCADA Improvements Sewer Condition Assessment Sewer Lift Station Repairs and Upgrades Sewer Line Capacity Improvements Sewer System Rehabilitation and Replacement Terramar Area Coastal Improvements Vallecitos Interceptor Sewer Cleaning and CCTV Vista Carlsbad Interceptor - Agua Hedionda LS and Forcemain (VC12-VC13) Vista Carlsbad Interceptor - Buena Vista Lift Station Improvements Vista Carlsbad Interceptor - Reach VC3 Vista Carlsbad Interceptor - Rehabilitation (VC1 and VC2) Vista/Carlsbad Interceptor - Point Repair Reaches (VC13 & VC14) Total Project Expenditures
225,000 660,002 100,000 1,208,691 1,907,000 1,489,999 240,000 1,670,000 75,193,398 1,200,000 352,000 358,000 95,015 788,000 4,684,899 1,707,999 5,175,386 5,690,046 14,426,479 890,001 104,000 676,901 311,000 3,000,000 122,153,816
400,000 35,000 200,000 4,454,000 592,000 26,000 300,000 (1) 15,000 100,000 186,000 500,000 2,279,000 (104,000) 80,000 140,000 9,202,999
500,000 432,000 1,350,000 200,000 10,125,000 105,000 186,000 6,000,000 2,279,000 228,000 154,000 21,559,000
9,000,000 650,000 400,000 300,000 6,933,000 158,000 186,000 500,000 2,279,000 2,952,000 385,000 23,743,000
5,625,000 2,500,000 5,425,000 16,000,000 158,000 186,000 6,000,000 2,279,000 1,397,000 39,570,000
6,836,000 158,000 186,000 500,000 2,279,000 9,959,000
77,799,000 1,500,000 1,856,000 12,000,000 27,400,000 1,000,000 121,555,000
ENDING FUND BALANCE
N/A
17,128,095
14,461,564
18,164,641
6,331,267
15,358,217
(39,622,431)
SEWER REPLACEMENT FUND
I-36
TRAFFIC IMPACT FEES (TIF)
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 4,848,275
YEAR 2 2027-28 8,776,087
YEAR 3 2028-29 10,897,463
YEAR 4 2029-30 14,033,711
YEAR 5 2030-2031 16,320,822
YEAR 6-15 2032-41 17,604,796
REVENUES Developer Fees Total Revenues
N/A
8,637,813 8,637,813
2,649,376 2,649,376
3,226,248 3,226,248
2,377,110 2,377,110
1,373,975 1,373,975
35,755,647 35,755,647
CAPITAL PROJECTS Avenida Encinas Coastal Rail Trail and Pedestrian Improvements Carlsbad Boulevard Realignment - Manzano Drive to Island Way Carlsbad Village Drive Widening - Pontiac Drive to Victoria Avenue El Camino Real Right Turn Lane to East Bound Alga Road El Camino Real Widening - Arenal Road to La Costa Avenue Sidewalk/Street Construction Program Terramar Area Coastal Improvements Traffic Impact Fee Funds to CFD #1 Traffic Impact Fee Update Traffic Monitoring Program Valley and Magnolia Complete Streets Total Project Expenditures
5,347,653 7,250,001 2,450,000 6,650,004 318,001 1,745,415 3,536,207 27,297,281
3,220,000 4,000,000 (2,600,000) 90,000 4,710,000
438,000 90,000 528,000
90,000 90,000
90,000 90,000
90,000 90,000
3,681,000 2,000,000 5,681,000
ENDING FUND BALANCE
N/A
8,776,087
10,897,463
14,033,711
16,320,822
17,604,796
47,679,443
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 9,247,582
YEAR 2 2027-28 6,430,106
YEAR 3 2028-29 3,093,020
YEAR 4 2029-30 607,652
YEAR 5 2030-2031 (1,461,663)
YEAR 6-15 2032-41 (2,404,584)
REVENUES Transportation Taxes Total Revenues
N/A
5,949,524 5,949,524
6,105,914 6,105,914
6,259,632 6,259,632
6,415,685 6,415,685
6,574,079 6,574,079
66,243,628 66,243,628
CAPITAL PROJECTS ADA Improvement Program Barrio Street Lighting Barrio Traffic Calming Carlsbad Boulevard and Tamarack Avenue Intersection Improvement Carlsbad Boulevard Realignment - Manzano Drive to Island Way Carlsbad Village Drive and Grand Avenue Pedestrian and Crossing Improvements Carlsbad Village Drive Widening - Pontiac Drive to Victoria Avenue Chestnut Avenue Complete Street Improvements - Valley to Pio Pico Chestnut Complete Street I-5 to Railroad Project Study College Boulevard Extension Coordinated Traffic Signal Program Coordinated Traffic Signal Program El Camino Real Widening - Poinsettia Lane to Camino Vida Roble El Camino Real Widening - Sunny Creek to Jackspar Kelly Drive and Park Drive Complete Street Improvements Pavement Management Program Pavement Management Program South Carlsbad Coastline State Street and Grand Avenue Road Improvements Street Lighting Replacement Program Terramar Area Coastal Improvements Valley and Magnolia Complete Streets Valley Street Traffic Calming Total Project Expenditures
4,445,002 2,560,000 1,024,999 1,054,001 2,000,000 529,549 2,583,980 1,000,001 3,155,000 5,610,000 4,675,000 30,886,565 19,196,476 1,689,777 3,325,001 2,000,000 1,199,999 86,935,351
1,058,000 (1,000,000) 250,000 8,452,000 1,007,000 (1,000,000) 8,767,000
175,000 5,200,000 1,068,000 3,000,000 9,443,000
618,000 170,000 250,000 250,000 200,000 5,800,000 1,132,000 325,000 8,745,000
215,000 230,000 540,000 6,000,000 1,200,000 300,000 8,485,000
645,000 5,600,000 1,272,000 7,517,000
4,950,000 932,000 80,000,000 13,881,000 99,763,000
ENDING FUND BALANCE
N/A
6,430,106
3,093,020
607,652
(1,461,663)
(2,404,584)
(35,923,956)
TRANSNET - LOCAL
I-37
WATER CONNECTION - POTABLE
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 38,211,618
YEAR 2 2027-28 40,512,499
YEAR 3 2028-29 32,188,051
YEAR 4 2029-30 33,184,291
YEAR 5 2030-2031 26,699,011
YEAR 6-15 2032-41 27,601,398
REVENUES Developer Fees Total Revenues
N/A
4,311,487 4,311,487
2,099,552 2,099,552
2,816,240 2,816,240
1,839,721 1,839,721
1,632,387 1,632,387
20,263,790 20,263,790
CAPITAL PROJECTS College Boulevard - Cannon Road To Badger Lane (375 Zone) College Boulevard - Cannon Road To Badger Lane (490 Zone) Crestview Drive Transmission Main Harding Street Sewer and Utility Improvements Hydroelectric Generation at Water Facilities Limited Access Pipeline Relocation Program Maerkle Reservoir Transmission Main Palomar Airport Waterline Realignment Poinsettia Lane - Cassia Road to Skimmer Court (Reimbursement Agreement) Pressure Reducing Station Program Rancho Carlsbad Groundwater Supply San Luis Rey Mission Basin Groundwater Supply SCADA Improvements Water Modeling Water System Improvements Water System Rehabilitation and Replacement Total Project Expenditures
278,383 312,600 185,000 500,000 1,622,000 600,000 599,999 80,000 375,000 200,000 4,752,984
25,000 500,000 93,000 150,000 (207,394) 500,000 950,000 2,010,606
1,802,000 1,802,000 320,000 6,000,000 500,000 10,424,000
740,000 80,000 500,000 500,000 1,820,000
1,825,000 6,000,000 500,000 8,325,000
230,000 500,000 730,000
5,000,000 5,000,000
ENDING FUND BALANCE
N/A
40,512,499
32,188,051
33,184,291
26,699,011
27,601,398
42,865,188
YEAR 1 2026-27 (1,398,836)
YEAR 2 2027-28 307,999
YEAR 3 2028-29 7,999
YEAR 4 2029-30 7,999
YEAR 5 2030-2031 7,999
YEAR 6-15 2032-41 7,999
WATER CONNECTION - RECYCLED
BEGINNING FUND BALANCE
PRIOR YEARS N/A
REVENUES Recycled Water Loans and Grants Total Revenues
N/A
CAPITAL PROJECTS C Tank Access Road and Electrical Improvements Carlsbad Water Recycling Facility (Encina Capital Projects) Carlsbad Water Recycling Facility Improvements Recycled Water Phase 3 - Pipelines Recycled Water Phase 3 - Reservoir Total Project Expenditures
50,000 350,000 17,002,444 6,852,996 24,255,440
ENDING FUND BALANCE
N/A
I-38
-
-
-
-
-
-
(280,000) (1,351,835) (75,000) (1,706,835)
300,000 300,000
-
-
-
-
307,999
7,999
7,999
7,999
7,999
7,999
WATER REPLACEMENT - POTABLE
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 19,952,139
YEAR 2 2027-28 14,672,206
YEAR 3 2028-29 170,098
YEAR 4 2029-30 (5,989,109)
YEAR 5 2030-2031 (16,929,883)
YEAR 6-15 2032-41 (20,438,024)
REVENUES Transfer from Water Operating Fund Total Revenues
N/A
1,424,490 1,424,490
832,892 832,892
695,792 695,792
5,823,226 5,823,226
5,806,859 5,806,859
57,316,551 57,316,551
CAPITAL PROJECTS Carlsbad Boulevard Waterline Replacement at Terramar Carlsbad Municipal Water District Building and Site Improvements Carlsbad Water Recycling Facility (Encina Capital Projects) Cathodic Protection Program Crestview Drive Transmission Main El Camino Real Widening - Arenal Road to La Costa Avenue Harding Street Sewer and Utility Improvements Limited Access Pipeline Relocation Program Maerkle Facility Improvements Maerkle Reservoir Solar Project Maerkle Reservoir Transmission Main Normally Closed Valve (Install Motorized Valve) Orion Center Palomar Airport Waterline Realignment Pressure Reducing Station Program Rancho Carlsbad Groundwater Supply Recycled Water Phase 3 - Pipelines Recycled Water Phase 3 - Reservoir Reservoir Repair and Maintenance Program San Luis Rey Mission Basin Groundwater Supply Santa Fe II Inlet Pipeline Santa Fe II Reservoir Site Electrical Improvements SCADA Improvements Tri-Agency Water Transmission Pipeline Replacement Valley and Magnolia Complete Streets Water Infrastructure Condition Assessment Program Water System Rehabilitation and Replacement Water Valve Repair/Replacement Program Total Project Expenditures
6,480,105 400,000 599,943 2,366,702 6,129,000 4,091,200 518,170 195,001 1,966,002 184,654 2,332,999 6,431,037 2,147,778 180,003 8,185,001 529,650 333,581 10,077,599 2,608,973 71,001 3,440,000 22,058,372 11,366,999 92,693,770
300,000 100,000 500,000 372,000 (497,582) 450,000 (300,000) (439,150) 1,200,000 (6,714) (91,130) 4,000,000 32,000 1,085,000 6,704,424
2,250,000 600,000 6,000,000 500,000 553,000 717,000 450,000 3,180,000 1,085,000 15,335,000
600,000 540,000 500,000 500,000 450,000 3,180,000 1,085,000 6,855,000
600,000 5,475,000 500,000 500,000 378,000 4,596,000 450,000 3,180,000 1,085,000 16,764,000
600,000 3,000,000 500,000 500,000 450,000 3,180,000 1,085,000 9,315,000
5,000,000 5,000,000 20,000,000 2,182,000 5,937,000 4,730,000 43,428,000 11,075,000 97,352,000
ENDING FUND BALANCE
N/A
14,672,206
170,098
(5,989,109)
(16,929,883)
(20,438,024)
(60,473,473)
BEGINNING FUND BALANCE
PRIOR YEARS N/A
YEAR 1 2026-27 7,867,315
YEAR 2 2027-28 6,272,816
YEAR 3 2028-29 (391,184)
YEAR 4 2029-30 (2,262,184)
YEAR 5 2030-2031 (4,153,184)
YEAR 6-15 2032-41 (6,059,184)
REVENUES Transfer from Recycled Water Operating Fund Total Revenues
N/A
CAPITAL PROJECTS C-Tank Access Road Repair and Electrical Improvements Carlsbad Municipal Water District Building and Site Improvements Carlsbad Water Recycling Facility (Encina Capital Projects) Carlsbad Water Recycling Facility Improvements Cathodic Protection Program D-Site Recycled Water Pump Rehabilitation Orion Center Recycled Water Condition Assessment Program Recycled Water System Rehabilitation and Replacement Recycled Water Valve and Appurtenance Replacement Program Transfer to Recycled Connection Capital Fund Reservoir Maintenance and Repair Program SCADA Improvements Total Project Expenditures
250,000 159,999 5,575,711 200,000 300,000 7,013 850,001 1,050,000 380,000 450,000 2,394,399 11,617,123
23,000 350,000 100,000 (1) 53,000 371,000 132,500 565,000 1,594,499
1,000,000 900,000 3,307,000 400,000 53,000 371,000 133,000 500,000 6,664,000
414,000 400,000 53,000 371,000 133,000 500,000 1,871,000
434,000 400,000 53,000 371,000 133,000 500,000 1,891,000
449,000 400,000 53,000 371,000 133,000 500,000 1,906,000
6,934,000 1,000,000 590,000 5,060,000 1,363,000 10,000,000 24,947,000
ENDING FUND BALANCE
N/A
6,272,816
(391,184)
(2,262,184)
(4,153,184)
(6,059,184)
(31,006,184)
WATER REPLACEMENT - RECYCLED
-
-
-
-
-
-
I-39
GLOSSARY OF CAPITAL PROJECT FUNDING SOURCES BTD 2 – Bridge and Thoroughfare District No. 2 developer fees are paid to partially fund the Poinsettia Lane and Aviara Parkway street construction project. BTD 3 – Bridge and Thoroughfare District No. 3 developer fees are paid to partially fund Cannon Road improvements. CDBG – Community Development Block Grants are allocated by the federal government to help develop viable urban communities for low and moderate income households. CFD 1 – The City of Carlsbad Community Facilities District No. 1 (Mello-Roos) funds civic projects, I-5 interchange projects, and road segments. Federal Grants – Federal Grants such as the Schools Traffic Safety Program. Gas Tax – Gas Tax revenues for street projects are received under the Streets & Highways Code of the State of California. Gas Tax 1B – Gas Tax revenues for street projects specifically for road maintenance and rehabilitation are received under the Streets & Highways Code of the State of California. General Capital Construction – General Capital Construction funds, created through fund transfers from the city's General Fund, are used to fund various municipal and other capital projects. Infrastructure Replacement Fund (IRF) – Annual transfers from the General fund pay for major maintenance and replacement of the city’s infrastructure. Other – Sources include revenues related to pending financing districts, property owner contributions, and contributions from other agencies. Park-in-Lieu (PIL) – Park-in-Lieu Fees are charged to developers for park acquisition and development. PIL fees are segregated by quadrant to fund park projects in those quadrants.
Parking In-Lieu – Park in-Lieu fees are collected from new developments in Carlsbad Village that do not provide adequate parking facilities for use in construction of future parking facilities and improvements. Planned Local Drainage (PLD) – Drainage facilities necessitated by growth are paid from developer Planned Local Drainage Fees. PLD fees are segregated by drainage area.
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Public Facilities Fees (PFF) – Public Facilities Fees are charged to developers to fund civic facilities, park development, streets, traffic signals, and other facilities. Sewer Connection – Development fees include Sewer Connection charges for expansion of sewer lines and facilities. Sewer Replacement – Sewer Replacement is part of sewer user fees and pays for repair and replacement of the city's existing sewer system. State Grants – State Grants such as Veteran’s Memorial Park funding. Transportation Development Act (TDA) – City street and bicycle projects can receive funding from Transportation Development Act sales tax receipts. Traffic Impact Fees (TIF) – Developer Traffic Impact Fees are used for various street construction and improvement projects. TransNet (BIKE, -HWY, -LOCAL, -STP) – Receipts of County Sales Taxes allocated by the San Diego Regional Transportation Commission finance various bicycle, freeway interchange and local road improvement projects. Water Connection – Development fees include Major Facility Fees used to fund expansion of water lines and ancillary water facilities. Water Replacement – Water Replacement funds are included in water utility rates and pay for the repair and replacement of existing potable water lines and facilities. Water Recycled – Revenues used to fund new Recycled Water projects; revenues for Phase III expansion includes grant and loan funds. Water Recycled Replacement – Recycled Water Replacement funds are included in utility rates and pay for the repair and replacement of existing recycled water lines and facilities. Zone 5, 13, 16, 17, 18 Park Fee (ZONE 5) – Fees paid by development in Local Facilities Management Zones 5, 13, 16, 17 and 18 to fund a Business Park Recreational Facility in the city's industrial corridor.
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PLANNED MAJOR CAPITAL OUTLAY ITEMS FISCAL YEAR 2026 -27 (Greater than $250,000)
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GENERAL FUND ASSET REPLACEMENT FOR FISCAL YEARS 2027 -28 TO 2036-37
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FUND CLASSIFICATIONS AND DESCRIPTIONS The financial operations of the city are organized into funds for which budgets are prepared. These funds are grouped into three major categories: Governmental, Proprietary, and Fiduciary.
Governmental Funds
Governmental funds are made up of the General Fund, Special Revenue Funds and Capital Project Funds. The General Fund (001) is used to account for all financial resources necessary to carry out basic governmental activities of the city that are not accounted for in another fund. The General Fund supports essential city services such as police and fire protection, street maintenance, libraries, parks and open space management. Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures for specified purposes. Affordable Housing (133) – Collects fees generated from the Inclusionary Housing In-Lieu Fee and the sale of affordable housing credits that satisfy a developer’s inclusionary housing obligation as well as loan repayments from existing developments. With these funds, the city provides affordable housing programs and low income and homeless services support and financial assistance for residential developments that provide housing opportunities to low income households. Agricultural Mitigation Fee (171) – The Agricultural Conversion Mitigation Fee program funds projects that improve agricultural lands for continued agricultural production, protect and enhance the coastal and lagoon environment, improve lagoon nature centers and restore beaches for public use. Buena Vista Channel Maintenance District (163) – Ensures adequate funds are collected from property owners within the district to administer and maintain the Buena Vista Creek Channel from Jefferson Street east to the South Vista Way bridge. Citizens’ Option for Public Safety (COPS) (123) – Supplemental Law Enforcement Services Funds to be spent providing “front line police services” such as anti-gang efforts, crime prevention and juvenile justice programs. Community Development Block Grant (391) – Federal funds provided to the city to develop viable urban communities through the provision of decent housing, a suitable living environment and by expanding economic opportunities for lower income persons. Continuum of Care (192) – Funds from the US Department of Housing and Urban Development to support rapid rehousing of individuals experiencing homelessness. Cultural Arts Donations (148) – Funds used to promote and support the programs and activities of the city’s Cultural Arts Office.
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Encampment Resolution Fund (189) – Funds from the California Department of Housing and Community Development to provide services and supports to people experiencing homelessness in encampments that results in meaningful paths to safe and stable housing. Habitat Mitigation Fee (172) – Funding for conservation of certain parcels totaling approximately 300 acres, which lie in the unincorporated area to the southeast of Carlsbad and which are essential to the biological viability of the Habitat Management Plan. Library and Arts Endowments (175) – Donations are used to support Library programming and activities. Library Gifts & Bequests (145) – Includes Friends of the Library annual donations and Library Gifts and Bequests. Donations are used to support Library programming and activities. Lighting and Landscaping District 2 (164) – This maintenance and assessment district funds the costs of streetlights, street trees and medians within the district boundaries covering newer developments in the city. Local Cable Infrastructure (138) – Funds used for the associated capital costs of the city’s own cable channel and other city outreach and communications programs. Franchise fees from cable and internet providers make up the revenue for this fund. Median Maintenance District (161) – Provides landscape and irrigation maintenance for approximately 68 acres of median planters and nine acres of developed parkways, including the Downtown Carlsbad Village area. Opioid Settlement Fund (128) – Funds from the California Opioid Settlements utilized for opioid remediation activities. Parking in-Lieu Fees (315) – Funding collected from new developments in Carlsbad Village that do not provide adequate parking facilities for use in construction of future parking facilities and improvements. Permanent Local Housing Allocation (136) – Funds from the California Department of Housing and Community Development to assist local governments with housing-related projects and programs that assist in addressing the unmet housing needs of their local communities. Police Asset Forfeiture (122) – Funds received from the police department’s drug enforcement activities that are restricted for use in supporting police activities to include the acquisition of equipment, supplies or services. Public Safety Grants (124) – Used to purchase equipment, supplement staffing costs and assist with training. Recreation Donations (149) – These donations provide supplemental funding for Parks & Recreation events, programs and facilities.
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Rental Assistance/Section 8 Program (190) – Federal funding to provide vouchers to help low income residents pay rent. Senior Program Donations (143) – These donations provide funding for nutrition, transportation, activities, events and other programs benefiting Carlsbad's senior population. Street Lighting Maintenance District (162) – The street lighting maintenance assessment district provides funding for the operation and maintenance of all city-accepted streetlights within the public right-of-way. Street Tree Maintenance District (160) – The street tree maintenance assessment district provides partial funding for the operation and maintenance of all city-accepted street trees within the public right-of-way, including specialized maintenance for street trees in the Downtown Carlsbad Village area. Tyler Court Apartments (806) – Provides affordable housing to senior households with incomes at 30% and 50% of the San Diego County Area median incomes. Capital Project Funds are used to account for specific revenues that are restricted to expenditures for capital project purposes. Community Facilities District 1 (CFD 1) (430) – Mello-Roos funds specific civic projects, I-5 interchange projects and road segments. Gas Tax (152) – Gas Tax revenues for street projects received under the Streets & Highways Code of the State of California. Gas Tax Road Maintenance and Rehabilitation (153) – Gas Tax revenues for street projects, which can only be used for road maintenance and rehabilitation, received under the Streets & Highways Code of the State of California. General Capital Construction (GCC) (300) – General Capital Construction funds, created through annual fund transfers from the city's General Fund, are used to fund various municipal and other capital projects. Grants-Federal (392) – Federal Grants such as funding for Village and Barrio traffic circles. Grants-State (389) – State grants such as Veteran’s Memorial Park funding. Infrastructure Replacement (IRF) (370) – Annual transfers from the General Fund to pay for major maintenance and replacement of the city’s infrastructure. Park in-Lieu Fees (PIL) (330-333) – Park-in-Lieu fees are charged to developers for park acquisition and development. PIL fees are segregated by quadrant to fund park projects in those quadrants.
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Planned Local Drainage Area Fees (PLD) (350-353) – Drainage facilities necessitated by growth are paid from developer Planned Local Drainage Fees. PLD fees are segregated by drainage area. Public Facilities Fees (PFF) (320) – Public Facilities Fees are charged to developers to fund civic facilities, park development, streets, traffic signals, and other facilities. Technology Investment Capital (375) – Technology Investment Capital funds, created through annual fund transfers from the city's General Fund, are used to fund various technology projects. Traffic Impact Fees (TIF) (310) – Developer Traffic Impact Fees are used for various street construction and improvement projects. TransNet (342) – Receipts of county sales taxes allocated by the San Diego Regional Transportation Commission to finance various bicycle, freeway interchange and local road improvement projects.
Proprietary Funds
Proprietary funds are Internal Service Funds and Enterprise Funds. Internal Service Funds are used to account for operations internal to the city where the intent is that the cost of providing services to the city department is financed primarily through department user charges. Workers’ Compensation (611) – Management of workers’ compensation insurance and claims. Risk Management (612) – Management of vehicle and city liability insurance. Vehicle Maintenance (620) – Vehicle maintenance and operations of citywide fleet, including gas and oil charges. Vehicle Replacement (621) – Funding for the replacement of vehicles currently in operation, based on the expected replacement cost at the end of vehicles useful life. Information Technology Operations (640) – Maintenance and operations of citywide technology assets. Information Technology Replacement (641) – Funding for the replacement of current technology assets based on the expected replacement cost at the end of the anticipated useful life. Enterprise Funds are used to account for operations that are financed and operated similar to a private business where the intent is that the cost of providing services to the public is financed primarily through user charges. Potable Water Operations (501) – Carlsbad Municipal Water District (CMWD), a subsidiary of the city, provides potable water service to approximately 85% of the city. Potable Water Connection (506) – Development fees include Major Facility Fees used to fund expansion of potable water lines and ancillary water facilities.
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Potable Water Replacement (505) – Water replacement charges are included in water utility rates and pay for the repair and replacement of existing potable water lines and facilities. Recycled Water Operations (502) – Funds used to operate and maintain critical infrastructure systems and to provide the safe delivery of conservation outreach and treated irrigation water. Recycled Water Connection (507) – Revenues used to fund new Recycled Water projects; revenues for Phase III expansion includes grant and loan funds. Recycled Water Replacement (508) – Recycled Water Replacement funds are included in utility rates and pay for the repair and replacement of existing recycled water lines and facilities. Wastewater Operations (511) – The city operates and maintains a sanitary wastewater collection system, which covers approximately 65% of the geographic area of the city. Wastewater Connection (512) – Development fees include Sewer Connection charges for expansion of sewer lines and facilities. Wastewater Replacement (515) – Sewer replacement charges are part of sewer user fees and pay for repair and replacement of the city's existing sewer system. Solid Waste Management (520) – Administers and monitors the solid waste contract and the Palomar Transfer Station agreement and is responsible for ensuring the waste reduction and recycling components of the Source Reduction and Recycling Element and Household Hazardous Waste Element comply with state mandated diversion and disposal requirements. Watershed Protection (521) – Fund dedicated to providing programs which enable stewardship of the city’s resources protecting our beaches, creeks, and lagoons. The Crossings Golf Course (572) – Funds used to cover the operations of the city’s municipal golf course.
Fiduciary Fund
Fiduciary funds are private purpose trust funds used to account for situations where the city’s role is purely custodial, such as the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments. Successor Agency to the Redevelopment Agency (801) – Responsible for administering enforceable obligations of the former Carlsbad Redevelopment Agency (RDA) including administration of housing loans and other debt obligations, completing existing projects and ultimately to wind down RDA operations over time.
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DE PAR TME NT/F UND RE LA TIONS HI P
Special Revenue Affordable Housing Agricultural Mitigation Fees Buena Vista Channel Maintenance District Citizens Option for Public Safety Community Development Block Grant Continuum of Care Cultural Arts Donations Encampment Resolution Fund Habitat Mitigation Fee Library & Arts Endowments Library Gifts & Bequests Lighting & Landscaping District No. 2 Local Cable Infrastructure Median Maintenance District Opioid Settlement Parking-in-Lieu Fees Permanent Local Housing Allocation Police Asset Forfeiture
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Community Services
Administrative Services
Policy & Leadership
X
X
X
X
X
X
Major Funds
Capital Projects
Public Works
General Capital Project Community Facilities District No. 1 Infrastructure Replacement Enterprise Potable Water Operations Potable Water Connection Potable Water Replacement Recycled Water Operations Recycled Water Connection Recycled Water Replacement Wastewater Operations Wastewater Connection Wastewater Replacement
Fire Department
Fund
Police Department
Budget Program
X X X X X X X X X X X
Non-Major Funds
X
X
X X
X
X
X
X X X X X X X X X
X
X
X
X
Capital Projects
Policy & Leadership
Administrative Services
X
Community Services
X
Public Works
Fire Department
Fund Special Revenue (continued) Public Safety Grants Recreation Donations Rental Assistance/Section 8 Program Senior Program Donations Street Lighting Maintenance District Street Tree Maintenance District Tyler Court Apartments Capital Project Gas Tax Gas Tax Road Maintenance and Rehabilitation General Capital Construction Grants-Federal Grants-State Park-in-Lieu Fees/Park Development Fund Planned Local Drainage Area Fees (PLD) Public Facilities Fees Technology Investment Capital Traffic Impact Fees (TIF) TransNet Internal Service Workers' Compensation Risk Management Vehicle Maintenance Vehicle Replacement Information Technology Operations Information Technology Replacement Enterprise The Crossings Golf Course Solid Waste Management Watershed Protection Fiduciary Successor Agency to the Redevelopment Agency Major and non-major classifications as of June 30, 2025.
Police Department
Budget Program
X X X X X X X X X X X X X X X X X X
X X
X X
X X X
X
X
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GL OSSAR Y Actual Budget – What was actually spent during the budget year and the revenues that were actually received. The city may not spend more than what is approved in the adopted budget. Adopted Budget – The final approved budget that includes how much money may be spent from different city funds and how many positions are approved for the city’s workforce. Appropriation – A specific amount of money authorized by the City Council for an approved work program or individual project. Assessed Valuation – A dollar value placed on real estate or other property by the County of San Diego as a basis for levying property taxes. Balanced Budget – A budget in which planned expenditures do not exceed planned funds available. Beginning/Ending Fund Balance – Unencumbered resources available in a fund from the prior/current year after payment of the prior/current year expenses. Bond – A certificate of debt issued by an entity, guaranteeing payment of the original investment, plus interest, by a specified future date. Branch – An organizational unit comprised of departments. Examples include the Administrative Services Branch and Community Services Branch. Budget – An annual financial plan that identifies revenues, types and levels of services to be provided and the amount of funds that can be spent. Capital Budget – A budget that plans for the purchase, maintenance, or improvement of the city’s fixed assets such as buildings, parks, and roads. This budget includes significant expenses that are typically spread over several years. Capital Improvement Program – A multi-year financial plan containing proposed construction of physical assets such as park, street, sewage and recreation facilities. The 15-year program outlines the expenditure plan for future capital projects and the corresponding revenues to pay for those expenditures. Capital Outlay – Equipment (fixed assets) with a value $1,000 or more and an estimated useful life of more than one year, such as automobiles and office furniture, which appear in the operating budget. Carlsbad Community Vision – A set of nine core values and vision statements developed through consultation with the community in 2010 that serve as a guide for city leaders as they serve the city. Carryforwards – At the end of the fiscal year, if there is money left over, city staff may request to carry some or all of this money forward to the next fiscal year. This money may only be used for onetime expenses, like a special program or the purchase of supplies for a single event. Cost Allocation – A method used to charge General Fund overhead costs to other funds, such as Enterprise Funds and Internal Service Funds. Credit Rating – An independent assessment of whether the city is a good credit risk. Criteria include overall financial management, leadership stability, debt and the city’s economic base. Cities with a high rating can borrow money at a lower interest rate. The City of Carlsbad has the highest rating possible, which is AAA. J-10
Debt Service – The payment of principal and interest on borrowed funds such as bonds. Department – An organizational unit comprised of programs or divisions. Examples include the Finance and Human Resources departments. Encumbrance – A legal obligation to pay funds, an expenditure of which has not yet occurred. Enterprise Fund – A fund type established to account for the total costs of selected governmental facilities and services that are operated similar to private enterprises. Expenditure – The actual spending of funds set aside by appropriation for identified goods and services. Fee – A general term used for any charge levied by government for providing a service or permitting an activity. Fiduciary Fund – A fund type used when the city holds a fiduciary or custodial responsibility for assets it doesn't own, such as the Successor Agency to the former Redevelopment Agency. Fiscal Year – 12-month period designated as the budget year. Carlsbad's fiscal year is July 1 to June 30. Full-time Equivalent (FTE) – The hours worked by one employee on a full-time basis, used to convert the hours worked by several part-time employees into the hours worked by full-time employees. Two employees each working 1,000 hours equals 1.0 full-time equivalent employee. Fund – A set of interrelated accounts to record revenues and expenditures associated with a specific purpose. Fund Balance – The amount of financial resources available for use. General Fund – The primary fund used by the city for which revenues and expenditures are not legally restricted for use. Examples of departments operating within the General Fund include Fire, Library, and the City Manager's Office. Grant – Contributions of cash or other assets from another governmental agency to be used or expended for a specified purpose, activity, or facility. Growth Management Plan – A comprehensive approach to land-use planning ensuring controlled and managed growth within the city, while providing designated public facilities. Growth Management Standards – Acceptable service levels that have been established for 11 public facility categories. Interfund Transfers – Payments from one fund to another fund, primarily for work or services provided. Internal Service Fund – A fund that provides services to all city departments and bills the various other funds for services rendered. Examples are Fleet Maintenance, Information Systems and Workers’ Compensation. Maintenance and Operations – A general category used for classifying expenditures for materials, supplies and services that are normally used within the fiscal year. Operating Budget – The annual appropriation of funds for ongoing program costs, which include salaries, benefits, maintenance and operations and capital outlay items. Carlsbad's Operating Budget encompasses one fiscal year.
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Operating Costs – Estimated expenses that can be expected to occur following the construction of a Capital Improvement Project. Personnel Costs – Expenditures associated with providing the staff necessary to provide the desired levels of services, including both salary and benefit costs. Preliminary Budget – A draft of the city’s proposed budget that is presented to the public and the City Council about a month before the final budget will be presented for approval. Revenues – Amount of funds received from the collection of taxes, fees, permits, licenses, interest and grants during the fiscal year. Special Revenue Funds – A fund that collects revenues that are restricted by the city, state or federal government as the manner in which they may be spent. Strategic Digital Transformation Investment Program – A strategic plan for technology and digital transformation combined with project descriptions, costs, funding sources and timelines. It outlines a five-year expenditure plan for future digital transformation and technology projects and the corresponding revenues necessary to pay for them. Structural Deficit – When a city’s projected ongoing spending is more than its projected ongoing revenues. Surplus – The amount of money left over once all the city’s projected or actual spending is accounted for. Transfer – Transfers refer to the movement of money between different funds within the city’s financial accounts. These transfers are usually made to allocate resources appropriately, manage cash flow, support specific projects and ensure funds are available where they are needed most. Unassigned Fund Balance – The portion of a fund’s balance that is not restricted by legal or contractual requirements and is available for any purpose. Unfunded Actuarial Liability – The difference between a pension plan's actuarially calculated liabilities and its assets; represents the amount still owed to fully fund pension benefits.
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A CRON YMS AARP ADA ADC AED AB ALA AV BCDDM BEAR BTD CAD Cal-OSHA CalPERS CalTrans CalWORKs CAD CAP CAPRA CCEA CCTV CDBG CEQA CFA CFD CIP CM&I CMWD COPS CPI CPMA CPOA CPR CSMFO CSS CST CTBID CWEA CWRF CY DEI DL DMP DOJ DUI EAT EIR EKG EMS EMT EOC EPA ERP ESL EV EWA
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American Association of Retired Persons Americans with Disabilities Act Actuarial Determined Contributions Automated External Defibrillator Assembly Bill American Library Association Audiovisual Build Capacity for Data-driven Decision Making Business expansion, attraction and retention Bridge and Thoroughfare Benefit District Computer Aided Dispatch California Occupational Safety and Health Administration California Public Employees Retirement System California Department of Transportation California Work Opportunities and Responsibility to Kids Computer-aided Dispatch Climate Action Plan Commission for Accreditation of Park and Recreation Agencies Carlsbad City Employees' Association Closed-circuit Television Community Development Block Grant California Environmental Quality Act Carlsbad Firefighters' Association Community Facilities District Capital Improvement Program Construction Management & Inspection Carlsbad Municipal Water District Citizens' Option for Public Safety Grant Consumer Price Index Carlsbad Police Management Association Carlsbad Police Officers' Association Cardiopulmonary Resuscitation California Society of Municipal Finance Officers Customer Self Service Portal Crime Suppression Team Carlsbad Tourism Business Improvement District California Water Environment Association Carlsbad Water Reclamation Facility Calendar Year Diversity, Equity and Inclusion Driver’s License Drainage Master Plan Department of Justice Driving Under the Influence Enhance Accessibility and Transparency Environmental Impact Report Electrocardiogram Emergency Medical Services Emergency Medical Technician Emergency Operations Center Environmental Protection Agency Enterprise Resource Planning English as a Second Language Electric Vehicle(s) Encina Wastewater Authority
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EWPCF FBI FE FEMA FPPC FTE FVCEC FY GAAP GASB GCC GDP GFOA GHG GIS GPS HA HELP HMP HOT HPRM HR HUD I&ED ICC ICMA IRF ISF IT ITRF JPA LEAP LEAD LFMZ LED LCP LLC LLD LMS M&O MFF MS4 MOU NAFA NFPA NIST NPDES OSHA PC PCDT PCI PERS PFF PHA PIL PLA PLD PLHA
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Encina Water Pollution Control Facility Federal Bureau of Investigation Finance Enterprise Federal Emergency Management Agency Fair Political Practices Commission Full‐Time Equivalent Foster a Vibrant Civic Engagement Culture Fiscal Year Generally Accepted Accounting Principles Governmental Accounting Standards Board General Capital Construction Gross Domestic Product Government Finance Officers Association Greenhouse Gas Emissions Geographic Information System Global Positioning System Hydrologic Area Homeless Engagement Leading to Progress Habitat Management Plan Homeless Outreach Team HP Records Manager Human Resources Department of Housing and Urban Development Innovation & Economic Development International Code Council International City/County Management Association Infrastructure Replacement Fund Internal Service Fund Information Technology Information Technology Replacement Fund Joint Powers Authority Local Early Action Planning Listen Empower Act Develop, a city-led training academy Local Facilities Management Zone Light-emitting diode Local Coastal Program Limited Liability Corporation Lighting and Landscaping District Learning Management System Maintenance and Operations Major Facility Fee Municipal Separate Storm Sewer System Memorandum of Understanding National Association of Fleet Administrators National Fire Protection Association National Institute of Standards and Technology National Pollutant Discharge Elimination System Occupational Safety and Health Administration (or Act) Personal Computer Pursue Communitywide Digital Transformation Payment card industry Public Employees Retirement System Public Facilities Fees Public Housing Agency Park‐In‐Lieu Fees Public Library Association Planned Local Drainage Permanent Local Housing Allocation Program
POST PSSC PV PW RDA RFID RFP RMRA ROPS ROW SANDAG SB SCADA SDCWA SDG&E SDTIP SR STEAM SWAT SWPPP SWQMP TCBMP TCMP TDA TDM TICF TIF TMDL TOT UAL UASI UDC UES USLA UV VMT VR WQIP
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Police Officer Standards and Training Promote Security and Sustainability through Connectivity Photovoltaic Public Works Redevelopment Agency Radio Frequency Identification Request for Proposal Road Maintenance and Rehabilitation Account Recognized Obligation Payment Schedule Right-of-Way San Diego Association of Governments Senate Bill Supervisory Control and Data Acquisition System San Diego County Water Authority San Diego Gas & Electric Strategic Digital Transformation Investment Program State Route Science, Technology, Engineering, the Arts, and Mathematics Program Special Weapons Attack Team Storm Water Pollution Prevention Plan Storm Water Quality Management Program Treatment Control Best Management Practices Traffic Control Management Plan Transportation Development Act Transportation Demand Management Technology Investment Capital Fund Traffic Impact Fee Total Maximum Daily Load Transient Occupancy Tax, or hotel tax Unfunded Actuarial Liability Urban Areas Security Initiatives Program Unified Disaster Council (of San Diego) Utilities Enterprise Funds (Operating or Capital) Unified States Lifesaving Association Ultraviolet light Vehicle miles traveled Virtual reality Water Quality Improvement Plan
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BUDGET COMMUNICATIONS
Workshop Community Budget Workshop on May 21, 2026 News release: https://www.carlsbadca.gov/Home/Components/News/News/3723/15
City Council Budget Meetings Fiscal Year 2026-27 Preliminary Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program on May 19, 2026 – https://carlsbadca.new.swagit.com/videos/388607?ts=2541 •
News release: https://www.carlsbadca.gov/Home/Components/News/News/3735/15
Fiscal Year 2026-27 Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program, the Fiscal Year 2026-27 Appropriation Limit and Revisions of Fees and Charges of Services on June 16, 2026 – https://carlsbadca.new.swagit.com/videos/391404?ts=462 •
News release: https://www.carlsbadca.gov/Home/Components/News/News/3792/15
Social Media Facebook Posts Save the date for budget workshop, May 11, 2026 https://www.facebook.com/cityofcarlsbad/posts/pfbid02tdgzuhqRjboRPc2b8q5kR4VPQZtLJ NLBGyLMpnKc3s283T2YPHMxNye5APLWGFzRl# Preliminary budget available and workshop reminder, May 20, 2026 https://www.facebook.com/photo/?fbid=1406313401529995&set=a.221114840049863# J-16
Budget adopted by City Council, June 18, 2026 https://www.facebook.com/cityofcarlsbad/posts/pfbid034yafDixMRsYncMAMQJnat5fkSTw 8MJPBfcyBy3dE6ZdaDNj38wu7nHnWbnKnAjnkl# X (Twitter) Posts Save the date for budget workshop, May 11, 2026 https://x.com/carlsbadcagov/status/2053981036124463538?s=20 Instagram Posts Save the date for budget workshop, May 11, 2026 https://www.instagram.com/p/DYN3lrhk8t8/ Preliminary budget available and workshop reminder, May 20, 2026 https://www.instagram.com/p/DYkd7kEIBlB/ Budget adopted by City Council, June 18, 2026 https://www.instagram.com/p/DZv1672lgqz/ Nextdoor Post May 18, 2026
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City Manager’s Update E-Newsletters June 18, 2026: https://conta.cc/4uPfBDP May 21, 2026: https://conta.cc/4tVqLql May 14, 2026: https://conta.cc/4ufnumP
Advertising The Coast News Digital ads (May 6-20, 2026)
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Print ad (May 8, 2026)
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GENERA L FUND FORE CAS T Overview City staff develops medium-term (five-year) and long-term (10-year) forecasts as part of the budget process. While long-term projections are inherently less reliable than short-term projections, they can help detect structural budget issues early. As shown in the following chart, revenues will start to fall short of expenditures in fiscal year 2030-31 because revenues are growing at a slower rate than expenditures. The timing of the projected deficit remains at the same point in time compared to last year’s budget. This is attributable to enhanced budget rigor, including three consecutive years of ongoing budget reductions as well as strong revenue performance throughout the high inflationary period. These efforts afford city leadership additional time to continue their strategic thinking and practices. Assumptions for both revenues and expenditures are detailed further in this forecast section.
General Fund 10-Year Forecast $400,000
$ (in htousands)
$350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $-
FY26
FY27
FY28
FY29
Revenues
FY30
FY31
FY32
FY33
FY34
FY35
Expenditures
Forecast Methodology A financial forecast is a planning tool that helps identify trends and anticipate the long-term consequences of budget decisions. The forecast is instrumental in modeling the effects of everchanging retirement costs, employee compensation, ongoing maintenance and operations, as well as revenues for the city’s budget. The forecast is not a budget nor a plan but rather a model based on cost and revenue assumptions updated regularly as new information becomes available. Of these components, cost projections— which are based on known costs—are relatively reliable. However, revenue forecasts are based on assumptions related to future economic conditions, which are inherently more uncertain. Economic forecasts change frequently and demonstrate the difficulties of committing to a particular prediction of the future. For this reason, the city’s forecast is updated regularly. While economic conditions are the primary drivers for economically sensitive revenues such as property tax, sales tax and transient occupancy tax, other factors drive non-economically sensitive revenue categories such as franchise fees, ambulance fees and departmental fees. These revenue
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categories are more heavily impacted by changing rates, energy prices and consumption levels. Collections from local, state and federal agencies are primarily driven by grant and reimbursement funding available from these agencies. As a result, these revenues experience no significant net gain or loss during economic expansions or slowdowns. All revenue projections are based upon a careful examination of the collection history and patterns related to seasonality and the economic environment the city is most likely to encounter in the future. A discussion of both the national and local economic outlooks used to develop the revenue estimates for the fiscal year 2025-26 forecast is included below. To create the revenue forecasts, city staff reviewed national, state and regional economic forecasts from multiple sources, including the Congressional Budget Office, California’s Legislative Analyst’s Office and the Center for Continuing Study of the California Economy. The city also relies on third-party consultants to provide revenue estimates in their respective fields of expertise. For sales tax consultant services, the city contracts with Hinderliter, de Llamas & Associates, also known as HdL. The city’s Consumer Price Index forecasts are derived from the UCLA Anderson Forecast for the Nation and California.
National Economic Outlook Real gross domestic product decreased at an annual rate of 0.5% in the first quarter of 2025, following an increase of 2.4% in the fourth quarter of 2024. This primarily reflects increases in imports, as well as a decrease in government spending, which are subtractions in the calculation of GDP. These movements were partly offset by increases in investment and consumer spending. Real GDP was revised down 0.3 percentage points from the second estimate, primarily reflecting downward revisions to consumer spending and exports that were partly offset by a downward revision to imports. Economic trends have been decelerating along with tighter financial conditions and restrictive monetary policy. Recent data suggests positive but below-trend growth this year. Although the pace of job growth is moderating, labor markets remain tight. However, declining consumer confidence and spending will be something to monitor closely moving forward. At the end of March 2025, the two-year Treasury yield was 70 basis points lower, and the 10-year Treasury yield was about 11 basis points lower, year-over-year. The inversion between the two-year and 10-year Treasury yield increased about 10 basis points to 0.34 over the previous month-end. The average historical spread since 2003 is about +130 basis points. The yield curve, inverted for a period of over two years, became positive in September 2024 and has slowly increased month over month.
Carlsbad Economic Outlook As of 2024, Carlsbad had the second largest gross regional product in San Diego County at nearly $16.8 billion, only trailing the City of San Diego. In 2019, Carlsbad’s economy grew by $800 million to nearly $13.6 billion. In 2020, as a result of the pandemic, the city’s GRP remained flat. In 2021, its economy grew by approximately $1 billion, to nearly $14.6 billion. From 2021 to 2023, Carlsbad’s gross regional product grew by $2.5 billion. Almost all industry categories experienced this growth, chiefly in manufacturing, wholesale trade, hospitality and professional, scientific, and technical services.
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Unemployment has continued to steadily improve since an initial spike to 13.8% at the onset of the COVID-19 pandemic. The March 2025 unemployment rate of 4.1% in Carlsbad represented an increase compared to the prior year’s unemployment rate of 3.5%. The unemployment rate for the County of San Diego was 4.2% in March 2025 and the State of California was 5.3%. Within the city, many employers are citing difficulty in finding and retaining workers. Macroeconomic trends in the tech industry have been pushing unemployment up nationally, but the labor market is still considered to be very tight. There were 6,043 unique job postings in Carlsbad between January and March of 2025 representing a decrease of about 2,000 from the same quarter in the previous year. The median advertised salary for these postings was $50,000, which is on average $1,000 less than jobs posted during the same period last year. In terms of educational requirements, 70% of open jobs posted either list a minimum requirement of high school or GED or don't list an educational requirement at all. And in terms of experience requirements, 68% of open jobs posted list a minimum of 1 year of work experience required, or don't list any experience requirement. Combined, this shows that employers are disproportionately looking for entry-level talent, meaning that individuals can start and grow a career in Carlsbad. The median job posting duration is 21 days, showing that employers are beginning to find workers more easily than over the past 5 years. Carlsbad has established itself as having the right workforce to fuel innovation in the technology and life sciences fields. Carlsbad businesses can access talent from San Diego County, Orange County and even southwest Riverside County. More than 60% of working age residents hold a bachelor’s degree, with nearly 25% attaining an advanced degree. With the exception of a couple of communities in central San Diego, Carlsbad has the heaviest concentration of households with degrees in science, technology, engineering and mathematics, also known as STEM degrees. This local talent mix is among the leading reasons that firms choose Carlsbad. In terms of property occupancy, commercial vacancy rates remain relatively steady across all categories. The industrial vacancy rate ended the quarter at 7.8%. The office vacancy rate increased by 0.7% and retail vacancy rates decreased by 2.08%. With 42 hotels in Carlsbad, tourism is a major industry in terms of employment and economic impact. It is also a major contributor to city revenue, through transient occupancy and sales tax generation. Room occupancy levels averaged 68.7% in the third quarter of fiscal year 2024-25 which exceeded the 66.2% average in the same quarter of the previous fiscal year. The impacts of inflation and a potential recession could hamper tourism globally, but Carlsbad is well-positioned as a destination that could see strong tourism even through a recession. Carlsbad’s average daily room rate increased compared to the previous year from $193.81 to $204.37. While disposable income, personal savings, pent-up demand and inflation have boosted revenue generation for the city, as inflationary levels linger and uncertainty surrounding trade policy continues, the economic outlook for tourism remains conservative. Median household income in Carlsbad continues to exceed county income levels. The median income for a household in Carlsbad in 2023 was $138,326, which was $8,270 lower than the previous year and $36,041 higher than the county median income. High interest rates have remained stagnant, but with continued high demand and low supply, as well as anticipated cuts by the Federal Reserve later
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in 2025, property values in Carlsbad have remained strong. The median home price increased to $1.54 million or 4.3% over the previous year. The city issued 2,796 business licenses in the third quarter of fiscal year 2024-25, including 1,195 nonresidential, 763 residential, and 838 outside-the-city licenses. This represents an increase of 480 total businesses over the same quarter in 2024. The number of licenses issued does not reflect the number of businesses in Carlsbad for several reasons: a business may carry multiple licenses, short-term vacation rentals are required to get a license, and businesses outside of Carlsbad that do business in the city or with the city are required to get a license. It is estimated that there are approximately 6,881 businesses in Carlsbad. Between January and March of 2025, both residential and commercial building permits increased. The city issued 792 residential permits and 93 commercial permits. Despite the year-over-year increase, the number of residential building permits issued has been generally decreasing over the past three years, a trend largely attributable to a decline in demand for new photo-voltaic systems as a result of the State of California’s changes to net-metering rules.
General Fund Revenues The city’s top three revenue sources continue to be property tax, sales tax and transient occupancy tax. Given the level of inflation coupled with lingering pent-up demand, personal savings, and disposable income, the city expects revenues to be slightly above the historic highs estimated in fiscal year 2024-25. As shown in the chart below, General Fund revenues are expected to be $243.3 million in fiscal year 2025-26 and increase throughout the forecast. Sales tax revenues are conservatively projected to decrease by 2.6% from the record highs in fiscal year 2024-25. Property and transient occupancy tax revenues are expected to increase moderately from the record highs in fiscal year 2024-25. Other revenue sources consider assumptions ranging from no growth to conservative growth. General Fund revenue performance, particularly in the three main categories discussed above, has experienced tremendous recovery and growth following the pandemic in March 2020. Shelter-inplace mandates, travel restrictions and federal stimulus have had significant impacts on the economy. Between 2022 and 2024, revenue performance was fueled by pent-up demand, increased personal savings and disposable income levels. However, decreasing consumer confidence levels and total gross sales tax receipts during fiscal year 2024-25 are driving the conservative sales tax assumptions in fiscal year 2025-26. Uncertainty surrounding whether the Fed’s interest rate targets will decrease, trade policy, and consumer demand resiliency, among other factors, warrant concern about the economy moving forward; this uncertainty continues to drive the need for conservative assumptions for economically sensitive revenue sources like sales and transient occupancy taxes. The National Bureau of Economic Research, an American private nonprofit research organization, defines the beginning and ending dates of recessions. The Bureau defines a recession as “a significant decline in economic activity spread across the economy, lasting more than two quarters which is 6 months, normally visible in real GDP, real income, employment, industrial production, and wholesale retail sales.” Since World War II, recessions have lasted an average of 11.1 months and have occurred, on average, about every 58.4 months, or 4.8 years.
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10-Year General Fund Revenue Forecast $ (in thousands)
$350,000 $300,000 $250,000 $200,000
$260,507
$243,530
$150,000
$291,974
$276,249
$307,891
$100,000 $50,000 $-
5-Year General Fund Revenue Forecast (in thousands) Revenue Category Sales Tax Property Tax Transient Occupancy Tax Franchise Tax Business License Tax Development Related Interdepartmental Charges Income from Investments and Property Ambulance Fee Transfer Tax Intergovernmental Other Revenues Total
$ $ $ $ $ $ $ $ $ $ $ $ $
Estimated 2024-25
59,383 96,917 34,777 7,095 6,560 5,912 5,186 8,007 7,200 1,676 2,109 5,838
$ $ $ $ $ $ $ $ $ $ $ $
240,660
$
Projected 2025-26
57,847 100,105 35,823 7,189 6,750 6,019 5,317 8,678 6,800 1,725 1,157 5,910
$ $ $ $ $ $ $ $ $ $ $ $
243,319
$
Projected 2026-27
59,009 105,317 36,839 7,355 6,963 6,276 5,477 9,127 7,004 1,779 1,163 6,394
$ $ $ $ $ $ $ $ $ $ $ $
252,703
$
Projected 2027-28
60,081 109,969 37,828 7,538 7,154 6,205 5,641 9,311 7,214 1,828 1,169 6,570
$ $ $ $ $ $ $ $ $ $ $ $
260,507
$
Projected 2028-29
61,121 114,621 38,791 7,725 7,351 6,269 5,810 9,500 7,431 1,878 1,174 6,750
$ $ $ $ $ $ $ $ $ $ $ $
268,421
$
Projected 2029-30
62,035 119,273 39,732 7,918 7,553 6,361 5,984 9,693 7,653 1,930 1,180 6,936
276,249
Sales Tax Sales tax is one of the city’s largest revenue sources. Sales tax revenues are collected at the point-ofsale and remitted to the California Department of Tax and Fee Administration, or CDTFA. The department allocates tax revenue owed to the city in monthly payments. Sales tax revenues were adversely impacted in fiscal year 2019-20 with the onset of the pandemic. The restrictions resulting from the COVID-19 pandemic led to increases in segments like auto sales, construction, drug store sales, chemical product, food markets and recreational products, while others like restaurants and general retail took a major hit. The city has also been benefitting from sales tax revenues on internet sales generated as a result of the Wayfair decision or the Assembly Bill 147 law that went into effect in October 2019.
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The onset of the pandemic in March 2020 resulted in swift reductions in sales tax revenues, with the city earning $38 million that fiscal year. During fiscal year 2020-21, impacts of COVID-19 on sales tax generally correlated with shelter-in-place mandates; as restrictions were lifted, recovery was realized, with fiscal year 2020-21 ending with $44 million in sales tax revenues. Fiscal year 2021-22 experienced the most accelerated recovery and ended the year at $51.2 million in sales tax revenues, a historic high for the city. Much of this recovery resulted from the easing of restrictions and pent-up demand. Fiscal year 2022-23 began with much uncertainty surrounding market and economic conditions like inflation and impacts to disposable income. Yet, consumer demand remained resilient and sales tax revenues are estimated to reach another historic high of $58.9 million. Much of the growth over the prior year was attributable to the correction of an error made by one specific auto dealer in how they were remitting and reporting sales tax receipts to the California Department of Tax and Fee Administration. This error has been corrected and will be treated as ongoing revenue in the future. Fiscal year 2024-25 experienced declining consumer demand resulting in a decrease in total taxable receipts which were offset by year-over-year inflationary increases. Looking ahead to fiscal year 2025-26, much uncertainty remains surrounding inflation, trade policy, and recessionary risk. With cooling inflation and continued declines in taxable receipts, a conservative estimate of $57.8 million is budgeted for fiscal year 2025-26 which represents a decrease of $0.9 million, or 2.6%, over fiscal year 2024-25 estimations. Revenues received under Proposition 72, a 0.5 cent increase in California sales tax for the funding of local public safety services, are included in sales tax revenues. Sales taxes are expected to increase over the next 10 years by an annual average rate of 1.2%.
Property Tax Property tax is the largest source of General Fund revenue and is expected to grow by $3.2 million or 3.3% over the fiscal year 202425 estimated amount. While the residential real estate market in Carlsbad has seen significant increases in values, commercial property assessed values are still expected to remain flat. Since the beginning of calendar year 2024— despite the high-interest rate environment—the median home price has increased, representing sustained demand given low inventory. Proposition 8 allows owners to have their property temporarily revalued if market value is lower than the factored base year value, posing a risk that property values could temporarily decrease. Until interest rates decline, prices are not anticipated to increase significantly on an annual basis. Assessed values on residential real estate are expected to grow modestly, capped by California’s Proposition 13. Proposition 13, adopted in 1978, limits the annual increase in assessed values for property. Under this proposition, assessed values (and the related property tax) can grow by no more than 2% per year. The value upon which the tax is based is only increased to the full market value
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upon the sale of a property. The maximum increase of assessed values, when not sold, is by the change in California’s Consumer Price Index, which was 1.036% for 2021-22—below the 2% cap for the first time since 2016-17. Residential activity has been driven by low interest rates on mortgages, pent-up demand that was built during the shutdown, and an increase in the ability to work remotely. With the rise in interest rates over the last year, that has shifted swiftly. The median price of a singlefamily residence in Carlsbad, based on resale data from Zillow, is $1.54 million, up 4.3% year over year as of March 2025. Estimates for the upcoming 2025-26 assessment year provided by the County of San Diego’s Assessor’s Office project moderate growth; however, the city’s forecast assumes a slightly more conservative outlook after taking into account current economic conditions and the related risks posed upon the housing market. Sustained levels of high inflation and the Federal Reserve’s current interest rate target are likely to impact property values as well as the volume of transactions. Changes in property tax revenues lag behind changes in the housing market, as the tax revenue for the upcoming fiscal year is based on assessed values from January 2025. Thus, the taxes to be received for fiscal year 2025-26 are based on assessed values as of January 1, 2025. Property taxes tend to grow slowly unless there is a significant amount of development-related activity. In past decades, the city has seen robust growth in property tax revenue due to new development, high turnover of existing homes, and double-digit growth in housing prices. However, as the city approaches buildout, development has slowed. In addition to recent interest rate increases, slower development combined with minimal commercial property transactions and tax reform has caused a slowing in property tax growth in the city. Property taxes are expected to increase over the next 10 years at an annual average rate of 3.9%.
Transient Occupancy Tax Transient Occupancy Tax, also known as TOT or hotel tax, is the third highest revenue source for the General Fund. TOT was the revenue category most adversely impacted by COVID-19. From a historic high of $26 million in fiscal year 2018-19, the city experienced year-over-year decreases of 27% and 16%. An accelerated recovery, with the easing of restrictions and pent-up demand, resulted in TOT revenues reaching new historic highs and ending fiscal year 2021-22 at $32.4 million. The city anticipated the rising inflation in fiscal year 2022-23 to adversely impact travel and tourism levels. However, the rise in average daily rates did not appear to significantly influence occupancy levels and as a result, the year ended with another historic high of $34.3 million. Fiscal year 2023-24 saw slight growth but was tapered by lingering inflation. Fiscal year 2024-25 is estimated to end the year at $34.8 million with fiscal year 2025-26 projected to increase by approximately 3.0%. Despite the inflation experienced the last couple of years, travel and tourism have remained resilient and the upcoming year’s projection remains cautiously optimistic.
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The City of Carlsbad currently has approximately 5,059 hotel rooms and 449 registered vacation rentals. Transient occupancy taxes are expected to increase over the next 10 years by an annual average rate of 2.4%.
Franchise Tax The city currently has franchise agreements for cable TV service, solid waste services, cell sites, fiber optic antenna systems and gas and electric services. The solid waste franchise experienced minor revenue increases that mirror growth in population and changes in rate structures. Cable TV franchise revenue is expected to remain relatively consistent from $1.3 million in the previous fiscal year to $1.3 million in fiscal year 2025-26. This revenue source will most likely remain stable or decline in future years as more subscribers cut cable services and move to online streaming services. In April 2021, a new agreement was approved with Republic Services of San Diego. The city receives 7.5% of revenues collected as well as an annual payment of $0.8 million in support of AB 939 and $1.3 million storm water fee. Increases in the forecast are driven by estimated population growth which drives consumption. San Diego Gas & Electric pays franchise taxes for the use of the public land over which they transport gas and electricity. The city also receives an “in-lieu” franchise tax based on the value of gas and electricity transported on SDG&E lines but purchased from another source. The “in-lieu” tax captures the franchise taxes on gas and electricity that is transported using public lands, which would not otherwise be included in the calculations for franchise taxes, due to deregulation of the power industry. This revenue source experienced a significant increase in fiscal year 2022-23 of $919,000 due to price increases but is expected to remain relatively flat out over the next several years. Franchise taxes are expected to increase over the next 10 years at an annual average rate of 2.4%.
Business License Tax Business licenses taxes are closely tied to the health of the local economy and are projected to increase to $6.8 million in fiscal year 2025-26, an increase of $0.2 million, or 3%, when compared to last year’s current estimates. Although there is generally a correlation with sales tax revenues, business license tax revenues tend to be more inelastic. There are currently about 10,043 licensed businesses in the City of Carlsbad, 592 less than in the prior year with 6,744 of them located in the city. Over the next 10 years, business license tax revenues are forecasted to increase annually, on average, by approximately 2.8%. J-28
Development-Related Revenues Development-related revenues are derived from fees for planning, engineering and building permits, and fees paid by developers to cover the cost of reviewing and monitoring development activities, such as plan checks and inspections. These revenues are difficult to predict, as many of the planning and engineering activities occur months or years before any actual development. During fiscal year 2009-10, development-related revenues began to turn around from historic lows experienced in fiscal year 2008-09. Since then, development-related revenues have fluctuated in line with increases and decreases in residential, commercial and industrial development. In fiscal year 2025-26 the city expects a 1.5% increase in development-related revenues to approximately $6.0 million. This follows higher than anticipated development activity occurring in fiscal year 2024-25. The projected increase in development-related revenues is tied to the volume and type of development projected to be permitted, multi-family versus single-family, and the revenues derived from building fees which occur in the early stages of development. Increases applied to these charges for services are made in accordance with City Council Policy 95, Cost Recovery. It is difficult to forecast development-related revenues as they fluctuate significantly from one year to the next. The city works with consultants to identify and estimate future development based on capacity. While development-related revenues have been trending downward based on capacity, the forecast attempts to normalize highs and lows experienced by applying conservative to moderate historical trendline assumptions. Over the next 10 years, development-related revenues are expected to increase approximately 4% annually on average.
Interdepartmental Charges Interdepartmental charges are generated through engineering services charged to capital projects, reimbursed work from other funds and miscellaneous interdepartmental expenses charged to funds outside the General Fund for services performed by departments within the General Fund. Miscellaneous interdepartmental charges correlate with the consumer price index, or CPI, and are expected to increase annually and on average by 3.0%.
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Income from Investments and Property This category includes interest earnings as well as rental income from city-owned land and facilities. The city is expected to earn about $5.4 million in interest on its General Fund investments for fiscal year 2025-26 and another $3.5 million in rental and lease income. The yield on the city’s portfolio is forecasted to average 3.4% and cash balances are expected to remain flat as increases in receipts are projected to be offset by increases in expenditures as the City Council’s goals are operationalized.
Ambulance Fees The city receives ambulance fee revenues based on gross revenue generated by the ambulance transport service provider. These revenues are estimated to decrease $0.4 million over last year’s estimates, from $7.2 million to $6.8 million. This decrease is driven by an anticipated increase in allowance for bad debt. Over the next 10 years, ambulance fees are anticipated to increase over the forecast period by 2.1% annually on average.
Transfer Taxes Transfer taxes are those taxes paid to the county upon the transfer of interests in real estate. The tax is $1.10 per $1,000 of property value, split equally between the county and the city. Carlsbad expects to receive approximately $1.7 million in transfer taxes for fiscal year 2025-26, which is a 3% increase from fiscal year 2024-25 adopted budget and relatively consistent with current year estimates. The residential real estate market remains strong; however, this will likely be influenced by rising and sustained interest rates. Although housing prices in Carlsbad increased in 2024 and buyer demand remains high, inventories continue to remain low. Over the forecasted period, transfer taxes are expected to annually increase on average by 2.8% in alignment with housing industry projections.
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Intergovernmental Revenues These revenues represent funds received from other governmental entities. In recent years, this revenue category has experienced a great deal of activity with the American Rescue Plan Act of 2021 in which the city received $12.6 million over a two-year span. Fiscal year 2024-25 experienced a spike due to receiving FEMA reimbursements related to the COVID-19 pandemic. Over the forecasted period, intergovernmental revenues are expected to remain flat.
Other Revenues All other revenues include recreation fees, other licenses and fees, fines and forfeitures, transfers in, and other charges and fees. Over the forecasted period, these revenues are anticipated to increase conservatively by 0.5% annually, on average.
General Fund Expenditures Each year, the city updates the budget by considering historical, present, and future costs and trends. In recent years, the city has added new rigor to the budget process which includes the following measures and strategies: • Automatic consumer price index increases were no longer added to base budgets. Instead, budget requests are required to substantiate the specific increase each year. • The process for carrying forward appropriations and encumbrances was formalized, whereby requests exceeding $100,000 require City Council approval. • The process of requesting new staff was also enhanced, whereby new requests must meet one of the following criteria: o Needed to comply with legal and regulatory requirements, o Needed to address a critical public safety need, or o Needed to meet City Council priorities or goals • In fiscal years 2022-23 through 2024-25, departments were directed to identify budgetary savings which resulted in a decrease in General Fund maintenance and operation expenditures of approximately $5 million. • In fiscal year 2025-26, after successfully delaying the future projected deficit until fiscal year 2030-31, no additional budget reductions were made. Notable budget increases were approved for public safety, environmental sustainability and utilities.
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As shown in the chart below, General Fund expenditures are expected to increase from $242.9 million in fiscal year 2025-26 to $320.8 million over the 10-year forecast period, representing an increase of $77.9 million or 32%.
10-Year General Fund Expenditure Forecast $400,000
$ (in thousands)
$350,000 $300,000
$320,829
$297,119
$250,000 $200,000
$254,811
$242,915
$275,787
$150,000 $100,000 $50,000 $-
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35
5-Year General Fund Expenditure Forecast (in thousands) Expenditure Category Salaries
Benefits
Maintenance and Operations Capital Outlay Council Contingency Transfers Total
$ $ $ $ $ $
Estimated 2024-25
$
Projected 2025-26
90,003 46,834 63,136 825 500 37,548
$ $ $ $ $ $
95,900 50,200 70,014 2,600 500 23,700
238,845
$ 242,914
Projected 2026-27
$ $ $ $ $ $
Projected 2027-28
Projected 2028-29
Projected 2029-30
98,082 55,947 70,692 1,698 500 17,159
$ 103,066 $ 59,216 $ 72,622 $ 1,745 $ 500 $ 17,662
$ 107,173 $ 63,870 $ 74,606 $ 1,793 $ 500 $ 18,172
$ 111,453 $ 66,670 $ 76,644 $ 1,842 $ 500 $ 18,678
$ 244,079
$ 254,811
$ 266,115
$ 275,787
Personnel Expenditures Salaries Full-time salaries are projected to grow at a rate of 4.2% per year, based on negotiated and step increases. Part-time salaries are forecasted to grow at a rate of 2.1% as they generally grow slower than full-time salaries. In fiscal year 2022-23 the city’s budget began accounting for vacancy savings. Vacancy savings represent the amounts of savings achieved through attrition. The forecast assumes $2 million in vacancy savings on an annual basis.
Health Benefits In fiscal year 2024-25 health benefits accounted for about 8% of all personnel costs in the General Fund. The city pays employees a fixed amount for health and dental insurance costs instead of covering a percentage of premiums. Health benefit costs are forecasted to increase annually on average by approximately 5.1%.
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Retirement Rising retirement costs are driving the increase in employee benefits. Carlsbad provides retirement benefits for its employees through the California Public Employee’s Retirement System, or CalPERS. Poor investment returns during the Great Recession significantly decreased the plan’s assets. In addition, enhanced benefits and actuarial assumption changes due to increased life expectancies increased the plan’s liabilities. As a result, the city’s pension costs have increased significantly and are one of the city’s largest financial obligations. In December 2016, the CalPERS Board of Administration lowered the discount rate from 7.5% to 7.0% with a three-year phase-in beginning in fiscal year 2018-19 to improve the financial stability of the pension system. This resulted in significant increases in retirement costs. In fiscal year 2021-22, the CalPERS Board lowered the discount rate from 7.0% to 6.8% because the fiscal year 2020-21 investment gain of 21.3% triggered the Funding Risk Mitigation Policy. With CalPERS earning an investment loss of 6.1% in fiscal year 2021-22, the city’s required contributions over the next five years are projected to significantly increase. Since fiscal year 2021-22, CalPERS’ investment performance has been relatively stable. However, fiscal year 2023-24 and 202425 preliminary returns were both above the 6.8% target and are expected to reduce the city’s future ongoing costs.
Projected Payroll Normal Cost (%) Normal Cost ($) UAL Payment Total Contribution Total Contribution (%)
Projected Payroll Normal Cost (%) Normal Cost ($) UAL Payment Total Contribution Total Contribution (%)
$ $ $ $
$ $ $ $
Projected CalPERS Contributions (Miscellaneous) FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2028-29 FY 2029-30 54,919,200 $ 56,456,938 $ 58,037,732 $ 59,662,788 $ 61,333,347 $ 63,050,680 11.6% 11.3% 11.1% 10.9% 10.7% 10.5% 6,365,135 $ 6,379,634 $ 6,442,188 $ 6,503,244 $ 6,562,668 $ 6,620,321 9,296,961 $ 10,278,000 $ 10,994,000 $ 12,714,000 $ 13,008,000 $ 13,242,000 15,662,096 $ 16,657,634 $ 17,436,188 $ 19,217,244 $ 19,570,668 $ 19,862,321 28.5% 29.5% 30.0% 32.2% 31.9% 31.5% Projected CalPERS Contributions (Safety) FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2028-29 FY 2029-30 32,119,099 $ 33,018,434 $ 33,942,950 $ 34,893,353 $ 35,870,367 $ 36,874,737 19.8% 19.5% 19.3% 19.0% 18.7% 18.4% 6,349,946 $ 6,438,595 $ 6,550,989 $ 6,629,737 $ 6,707,759 $ 6,784,952 9,387,155 $ 10,187,000 $ 10,779,000 $ 12,101,000 $ 12,334,000 $ 12,524,000 15,737,101 $ 16,625,595 $ 17,329,989 $ 18,730,737 $ 19,041,759 $ 19,308,952 49.0% 50.4% 51.1% 53.7% 53.1% 52.4%
The city’s retirement rates are based on a blend of all three miscellaneous tiers (2.7% at 55, 2% at 60, and 2% at 62). Although employees CalPERS Plan Breakdown by Tier (Miscellaneous) Number of Total Normal Cost Payroll on pay a different rate depending on Employees FY 2025-26 6/30/2023 Tier their respective tier, the city’s costs Misc. Classic 171 24.2% $ 16,586,879 Misc. Tier 2 52 21.0% $ 6,198,431 are the same for all three tiers. The Misc. PEPRA 358 16.9% $ 27,767,449 table to the right shows the current CalPERS Plan Breakdown by Tier (Safety) breakdown of city employees Number of Total Normal Cost Payroll on amongst the three retirement tiers. Employees FY 2025-26 6/30/2023 Tier The majority of employees in the city Fire Classic 38 33.5% $ 5,637,822 Fire Tier 2 16 30.0% $ 2,095,799 are currently covered under Tier 3. Fire PEPRA 43 26.1% $ 4,652,352 Savings from the lower-cost Tier 2 Police Classic 30 37.5% $ 5,112,099 Police Tier 2 14 34.3% $ 1,987,547 and Tier 3 plans are not expected to Police PEPRA 84 29.2% $ 10,079,798 be substantial for several years.
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A retiree’s highest monthly pension benefits are calculated by multiplying the following: • Service credit: the number of years of CalPERS service • Benefit Factor: percentage of pay based on age • Compensation Basis: the highest monthly average salary for a defined period
Maintenance and Operations General Fund departments budget for costs to support the ongoing maintenance and operations of the city. These costs comprise materials and supplies, professional services, and one-time special projects. One-time costs are budgeted for in year one of the forecasted period, so naturally, the increase over the forecasted period remains relatively low. On average, maintenance and operations costs are expected to increase approximately 3.2% annually.
Capital Outlay
Capital outlay costs are typically not budgeted for in the city’s General Fund; however, from time to time, departments may experience the need to purchase an item that is classified as a capital asset. In fiscal year 2024-25, the city established an Asset Replacement Reserve in the General Fund that will be used to fund significant capital outlay items on a rolling 10-fiscal year basis. As a result, the impacts of capital outlay expenditures have not been included in the city’s General Fund forecast.
Council Contingency The city maintains a City Council Contingency budget at a level of $500,000.
Transfers
The General Fund is responsible for transferring funds for the following purposes: • Lighting and Landscaping District #1 – the city established LLD #1 in 1986 and during its formation, no annual inflator was applied. As a result, the assessment paid by property owners in the district has become insufficient to cover the costs of lighting and landscaping. As a result, the General Fund is responsible for making up the difference. The transfer amount is expected to increase 7% over the next five years at an annual average rate of 1.5%. • Future capital funding – the General Fund is responsible for a significant portion of the city’s capital project funding. On an annual basis, the General Fund transfers an equivalent of 6% of estimated General Fund revenues to the Strategic Digital Transformation Investment Program, the Infrastructure Replacement Fund, and the General Capital Construction Fund. This amounts to $4.9 million being transferred to each of the capital project funds. The fiscal year 2025-26 budget was able to program budget surplus by setting aside an additional $5.6 million, split evenly, to the General Capital Construction and Infrastructure Replacement Fund on a one-time basis. These transfer amounts increase throughout the forecast based on increases in forecasted General Fund revenues.
CalPERS
The city provides a defined benefit pension to its employees through the California Public Employees’ Retirement System. Retirement benefits are calculated using a formula based on an employee’s age, earnings, and years of service.
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The retirement benefits are funded by: • Investment earnings (60%), • Employer contributions (29%), and • Employee contributions (11%). Each year, CalPERS determines an employer’s contributions based on actual investment returns and actuarial assumptions including: • Expected investment returns (discount rates), • Inflation rates, • Salaries, • Retirement ages, and • Life expectancies. Contributions funding the pension plan are comprised of two components: • The normal cost (the cost of the benefits earned in a respective year) and • The amortization of the unfunded accrued liability, also known as the UAL.
CalPERS Discount Rate Defined benefit plans are highly sensitive to the discount rate assumption. The discount rate is the expected rate of return of the plan’s assets over the long term. The discount rate will depend on the plan’s size, asset allocation, time horizon and other considerations. From the city’s perspective, the discount rate is important as it is used to determine the city’s annual contributions to the plan, the plan’s unfunded liability, and the plan’s funded status. In other words, the discount rate is used to determine whether a plan has enough assets to meet its future obligations. The discount rate must be realistic to allow the city to foresee funding issues that may impact future operating budgets and future generations of retirees and plan members. If the discount rate assumption is too high and investments earn less than expected, a funding shortfall may ensue, requiring the city or CalPERS members to make greater contributions than expected.
CalPERS Investment Earnings Since investment earnings fund nearly 60% of retirement benefits, the city’s pension plan is sensitive to the investment returns of CalPERS. Investment returns affect how much of the retirement benefits can be funded by investment earnings rather than contributions. If investment returns are lower than the discount rate, contributions must increase to make up for the difference. As a result, pension plans need accurate return assumptions to ensure fiscal sustainability. Currently CalPERS assumes it will earn investment returns of 6.8% each year. As illustrated in the following chart, over the last 20 years, CalPERS has earned investment returns below the discount rate assumption approximately half of the time. Individual fiscal year investment returns ranged between -24.0% and +21.7%. Most notably, CalPERS earned negative investment returns in 2008 and 2009 due to the Great Recession and positive investment returns in 2021 following the COVID-19 pandemic.
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For fiscal year 2021-22, CalPERS reported an investment loss of -6.1%, 12.7 percentage points lower than the 6.8% discount rate. The average investment return is 7% for a five-year period, 8% for a 10year period, and 7.5% for a 20-year period. As returns in a given year are volatile, it can be more instructive to look at returns over longer time horizons. As of June 30, 2024, below is a look at CalPERS’ investment returns over various time periods. Time Period Total Investment Return 1 Year 9.3% 5 Year 7.0% 10 Year 6.5% 20 Year 7.2%
CalPERS Update Funding Risk Mitigation Policy Under the Funding Risk Mitigation Policy, the 21.3% return in fiscal year 2020-21 triggered a reduction in the discount rate from 7% to 6.8%. The Funding Risk Mitigation Policy, approved by the CalPERS Board in 2005, lowers the discount rate in years of good investment returns to reduce risk in the portfolio. The Risk Mitigation Policy began affecting contributions in fiscal year 2023-24.
Asset Liability Management Process In November 2021, CalPERS completed its quadrennial Asset Liability Management process, which reviewed investment strategies and actuarial assumptions. At the Nov. 15-17, 2021, meetings, the CalPERS Board approved a 6.8% discount rate, selected a new asset allocation for the fund’s investment portfolio, and adopted new actuarial assumptions. Asset Class Target Allocation Global Equity 42% Fixed Income 30% Real Assets 15% Private Equity 13% Private Debt 5% Strategic Leverage -5% Total 100%
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CalPERS Plan Status
As of the most recent actuarial valuation on June 30, 2023, the city’s miscellaneous pension plan had assets of $383.8 million, liabilities of $502.5 million and a funded ratio of 76.4%. The city’s safety pension plan had assets of $294.2 million, liabilities of $416.9 million and a funded ratio of 70.6%. The unfunded liability is the difference between assets and liabilities, while the funded ratio is the ratio of assets to liabilities. CalPERS Miscellaneous Plan Status June 30, 2022 June 30, 2023 Present Value of Projected Benefits $ 559,893,293 $ 587,760,912 Entry Age Normal Accrued Liability $ 481,393,865 $ 502,489,876 Market Value of Assets $ 369,436,837 $ 383,790,810 Unfunded Accrued Liability $ 111,957,028 $ 118,699,066 Funded Ratio 76.7% 76.4% CalPERS Safety Plan Status June 30, 2022 June 30, 2023 Present Value of Projected Benefits $ 485,439,500 $ 517,025,611 Entry Age Normal Accrued Liability $ 393,017,010 $ 416,941,852 Market Value of Assets $ 282,537,994 $ 294,206,830 Unfunded Accrued Liability $ 110,479,016 $ 122,735,022 Funded Ratio 71.9% 70.6%
Impact of CalPERS Investments Returns CalPERS assumes it will earn investment returns of 6.8% each year. If investment returns are higher than 6.8%, the city’s contributions decrease. Conversely, if investment returns are lower than 6.8%, the city’s contributions increase. In fiscal year 2020-21, CalPERS earned 21.3% and as a result, the city’s required pension contributions decreased. In fiscal year 2021-22, CalPERS experienced an investment loss of -6.1% and as a result, the city’s required pension contributions increased in fiscal year 2024-25. In fiscal year 2022-23, CalPERS experienced an investment return of 5.8% which was below their target of 6.8% and as a result, the city’s required pension contributions will increase effective fiscal year 2025-26. However, CalPERS earned 9.3% in fiscal year 2023-24 and issued preliminary returns of 11.6% for fiscal year 2024-25 which is expected to reduce the city’s future pension-related costs.
Impact of CalPERS Discount Rate Changes Due to lower-than-historical interest rates and economic growth, market experts project lower returns for the next several decades. The Pew Research Center forecasts a long-term investment return of 6.5% for typical pension fund portfolios. During its Asset Management Liability Process, CalPERS considered discount rates between 6.25% and 7%. Ultimately, the CalPERS Board of Administration approved a discount rate of 6.8%, a decrease from the previous discount rate of 7%. The discount rate has a significant effect on the city’s CalPERS contributions. If the discount rate is reduced, the city’s CalPERS contributions will increase.
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City Strategies
In recent years, unfunded liabilities, or pension debts, have caused cities in California to cut back on public services. Three cities have declared bankruptcy. Pension debt is the difference between how much money is available to pay for the pensions that city employees receive when they retire and the money needed to pay for those benefits. Pension debt is an estimate because it’s not possible to know exactly how well the pension fund investments will perform nor how many employees will retire, at what age they will retire and how long they will live. The City of Carlsbad has long recognized the financial uncertainty caused by the state’s pension system. That’s why Carlsbad was one of the first cities in the region to enact pension reform, predating state reforms in 2013. This and other strategies have reduced the city’s pension debt considerably compared to most other cities in the state. In 2019, the City Council adopted a Pension Funding Policy via City Council Policy Statement 86. This policy states that the city will strive to maintain 80% funded status. Said another way, the goal of this policy is to keep Carlsbad’s pension debt at no more than 20% of its estimated liability. Since fiscal year 2016-17, the city has contributed $56.4 million to CalPERS to reduce the city’s unfunded liability and thereby achieve interest savings. These contributions were in addition to the annual contributions required by CalPERS. In fiscal year 2023-24, the City Council approved the establishment of a Section 115 Pension Trust. A Section 115 Pension Trust is a tax-exempt investment tool that allows local governments to pre-fund pension and retiree health costs. Once contributions are placed into the trust, assets from the trust can only be used for retirement plan purposes. Withdrawals may be made to either reimburse the city for retirement system contributions or to directly pay CalPERS. The benefits of a Section 115 Trust include the following: • Local control over assets: The city controls the contributions, withdrawals, investment strategy and risk level of assets in the Trust. • Pension rate stabilization: Assets can be transferred to CalPERS at the city’s discretion to pay for Normal Cost or Unfunded Actuarial Liability (UAL) contributions and can be used to reduce or eliminate large fluctuations in the city’s pension costs. • Potential for higher investment return than General Fund: Investment requirements that apply to the city’s General Fund assets under Government Code 53601 are not applicable to Trust assets. • Diversification: Trust assets will be diversified from CalPERS’ investments. The Section 115 Trust will be available to help offset future increases in pension costs while minimizing the impact on the city’s operating budget. It will provide the city with an alternative to sending funds directly to CalPERS while allowing the flexibility to make additional payments to CalPERS to reduce the Unfunded Actuarial Liability at the city’s discretion.
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The purpose of the trust is to accumulate sufficient assets to: (1) maintain an 80% funded status in accordance with City Council Policy 86 and (2) fund potential future decreases in CalPERS’ discount rate. For example, a reduction in CalPERS’ discount rate from the current 6.8% to 6.25% would result in additional contributions of approximately $118 million over a 20-year period. The city’s Section 115 Pension Trust is scheduled to receive $40 million in principal contributions from the General Fund over a five-year period and assuming a 6.25% annual rate of return, the trust is projected to accumulate sufficient funds to mitigate the impacts of such a discount rate reduction over a 20-year period.
Even though CalPERS is continuing to take prudent measures to manage pension liabilities for its participants, the annual costs paid by participating members will continue to increase. And, while CalPERS has outperformed its assumed rate of return on investments over the last 10 years, future economic uncertainty is likely to have a profound impact on its investment performance, which will impact the city’s annual required contributions.
General Fund’s Fund Balance
The General Fund’s fund balance serves as an indicator of fiscal health for the city. It represents the cumulative amount of revenues in excess of expenditures and how those funds may be used in the future. The city is required to account for its fund balances in accordance with Governmental Accounting Standard 54, which categorizes and defines how funds are to be reported as follows:
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Nonspendable Fund Balance – this includes amounts that cannot be spent because they are either not spendable in form (such as inventory) or legally or contractually required to be maintained intact (such as endowments). The city’s nonspendable balances include inventory, prepaid costs, deposits, loans receivable and advances to other funds. Restricted Fund Balance – this includes amounts that can be spent only for specific purposes stipulated by the constitution, external resource providers, or through enabling legislation. If the City Council action limiting the use of funds is included in the same action (legislation) that created (enables) the funding source, then it is restricted. The city’s restricted balance includes funds that have been contributed to the Section 115 Pension Trust. These funds are legally restricted to be used for pension related purposes. Between fiscal year 2025-26 and 2027-28, the General Fund is scheduled to contribute an additional $22.5 million and, assuming a 6.25% annual rate of return, is expected to accumulate $68.7 million at the end of the forecasted period. Committed Fund Balance – this includes amounts that can be used only for the specific purposes determined by a formal action of the City Council. It includes legislation (City Council action) that can only be overturned by new legislation requiring the same type of voting consensus that created the original action. Therefore, if the City Council action limiting the use of the funds is separate from the action (legislation) that created (enables) the funding source, then it is committed, not restricted. The city considers a resolution to constitute the form action of the City Council that is necessary to commit fund balance. The city currently has $1,000,000 committed for community activity grants. Assigned Fund Balance – this includes amounts that are designated or expressed by the City Council but does not require a formal action like a resolution or ordinance. The City Council has delegated the authority for the City Manager to carry forward certain unspent budget amounts for specific one-time purposes if the amount is equal or less than $100,000 per item to the next fiscal year. The City Council has authorized, through resolution, that all outstanding encumbrances at the end of the fiscal year and certain unspent budgeted amounts over $100,000 per item to be carried forward into the next fiscal year. Authorized encumbrances and carryforward budget are presented by function (General Government, Public Safety, Community Services, and Public Works). These amounts vary from year to year; for purposes of the forecast, historical averages were applied to each of the out years. The assigned fund balance also includes an assignment for economic uncertainty which may be used for periods of economic downturn or decline and at the discretion of the City Council. Lastly, this classification also has an Asset Replacement Reserve of $10 million. This reserve will be used and replenished on an annual basis to replace significant assets within the General Fund and thereby mitigate budgetary pressures and fiscal impacts on the General Fund Reserve. Unassigned Fund Balance – this includes the remaining spendable amounts which are not included in one of the other classifications. The General Fund is the only fund that reports a positive unassigned fund balance amount. It is the city’s policy that restricted resources will be applied first, followed by (in order of application) committed, assigned, and unassigned resources, in the absence of a formal policy adopted by the City Council. This balance is also referred to as the General Fund Reserve, which, in accordance with City Council Policy 74, must maintain a balance equal to or greater than 40% of the General Fund’s adopted operating budget. As of fiscal year end 2025-26, the General Fund Reserve is projected to have a reserve ratio of 54% and is not projected to drop below 40% until fiscal year 2031-32.
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Below is a 10-year forecast of the General Fund’s fund balance and its various classifications. As the General Fund’s expenditures are projected to begin exceeding its revenues beginning in fiscal year 2030-31, we can see the total fund balance amount begins to decline at that point and thereafter. As the city has done in the past, careful planning and strategic actions will be considered to ensure the projected deficit is pushed as far out into the future as possible. Fund Balance Classification
FY26
FY27
FY28
FY29
FY30
FY31
FY32
FY33
FY34
FY35
Nonspendable 13,171 13,171 13,171 13,171 13,171 Inventory 13,171 13,171 13,171 13,171 13,171 Prepaid Costs 13,010 13,010 13,010 13,010 13,010 13,010 13,010 13,010 13,010 13,010 Deposits Loans receivable 234,757 234,757 234,757 234,757 234,757 234,757 234,757 234,757 234,757 234,757 Advances to other Funds 1,187,173 1,187,173 1,187,173 1,187,173 1,187,173 1,187,173 1,187,173 1,187,173 1,187,173 1,187,173 Total Nonspendable 1,448,111 1,448,111 1,448,111 1,448,111 1,448,111 1,448,111 1,448,111 1,448,111 1,448,111 1,448,111 Restricted Section 115 Pension Trust 29,079,297 38,865,503 49,263,347 52,342,306 55,613,700 59,089,556 62,782,654 66,706,570 70,875,730 75,305,463 Total Restricted 29,079,297 38,865,503 49,263,347 52,342,306 55,613,700 59,089,556 62,782,654 66,706,570 70,875,730 75,305,463 Committed Community Activity Grants 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Total Committed 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Assigned Asset Replacement Reserve 10,500,000 10,500,000 10,500,000 10,500,000 10,500,000 10,500,000 10,500,000 10,500,000 10,500,000 10,500,000 General Government 1,221,003 1,221,003 1,221,003 1,221,003 1,221,003 1,221,003 1,221,003 1,221,003 1,221,003 1,221,003 Public Safety 2,764,067 2,764,067 2,764,067 2,764,067 2,764,067 2,764,067 2,764,067 2,764,067 2,764,067 2,764,067 Community Services 3,308,707 3,308,707 3,308,707 3,308,707 3,308,707 3,308,707 3,308,707 3,308,707 3,308,707 3,308,707 Public Works 1,708,800 1,708,800 1,708,800 1,708,800 1,708,800 1,708,800 1,708,800 1,708,800 1,708,800 1,708,800 Economic Uncertainty 9,635,909 9,635,909 9,635,909 9,635,909 9,635,909 9,635,909 9,635,909 9,635,909 9,635,909 9,635,909 Total Assigned 29,138,486 29,138,486 29,138,486 29,138,486 29,138,486 29,138,486 29,138,486 29,138,486 29,138,486 29,138,486 Unassigned Unassigned 131,485,298 130,322,942 125,620,598 124,848,187 122,039,251 116,799,376 107,961,043 95,301,143 78,193,269 56,132,013 Total Unassigned 131,485,298 130,322,942 125,620,598 124,848,187 122,039,251 116,799,376 107,961,043 95,301,143 78,193,269 56,132,013 Total Fund Balance $ 192,151,192 $ 200,775,042 $ 206,470,542 $ 208,777,091 $ 209,239,549 $ 207,475,530 $ 202,330,294 $ 193,594,310 $ 180,655,596 $ 163,024,074
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RESOLUTION NO. 2026-119 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING THE FINAL OPERATING BUDGET, STRATEGIC DIGITAL TRANSFORMATION INVESTMENT PROGRAM AND CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEAR 2026-27 FOR THE CITY OF CARLSBAD AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS FOR BUDGET FUNDS WHEREAS, the City Council of the City of Carlsbad, California, has reviewed the proposed final Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program for fiscal year (FY) 2026-27 and has held such public hearings as are necessary prior to adoption of the final budgets. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.
That the above recitations are true and correct.
2.
That the proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The activity or projects for which this budget is intended to fund may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines.
3.
That certain documents now on file in the Office of the City Clerk of the City of Carlsbad, entitled “Fiscal Year 2026-27 Preliminary Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program” presented at the Joint Special Meeting on May 19, 2026 as Exhibit 6 to Item No. 4, as amended, if necessary, in accordance with Attachments A-A3, B-B2, C and D to this Exhibit 1 are adopted as the final Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program for the City of Carlsbad for FY 2026-27, along with any adjustments, if any, determined by the City Council as set forth in the minutes of this Joint Special Meeting on June 16, 2025.
4.
That the amounts reflected as estimated revenues for FY 2026-27 as shown in Attachments A-A2 and B are adopted as the budgeted revenues for FY 2026-27.
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5.
That the amounts designated as the FY 2026-27 Budget request in Attachments A-A3, BB2, and D are appropriated to the department or fund for which they are designated, and such appropriation shall not be increased except as provided in this resolution.
6.
That the items and amounts as shown in Attachment E are adopted as major capital outlay items over $250,000 requiring City Council approval for FY 2026-27.
7.
That total appropriations for each fund may only be increased or decreased by the City Council by passage of a resolution amending the budget except as provided in this resolution.
8.
That the following controls are placed on the use and transfer of budget funds: A. No expenditure of funds shall be authorized unless sufficient funds have been appropriated by the City Council or City Manager as described below. i.
The City Manager may authorize all transfers of funds from account to account within any department.
ii.
The City Manager may authorize transfers of funds between departments within the same fund in an amount up to $250,000 per transfer.
iii.
The City Manager may authorize transfers of funds from the Housing Trust Fund to the Section 8 Housing Fund program administration to support the program’s fund balance and aid in the expansion of the program if costs exceed budget related to administration, payroll, vouchers, and related costs.
iv.
The City Manager may authorize budget adjustments involving offsetting revenues and expenditures; the City Manager may authorize increases in an appropriation for a specific purpose where the appropriation is offset by unbudgeted revenue designated for the specific purpose.
v.
The City Manager may authorize budget adjustments to increase the appropriation for the Workers’ Compensation and Risk Management Funds’ operating budgets in an amount equal to the increases in costs of claims expenses or estimated losses and liabilities.
vi.
The City Manager may authorize budget adjustments to increase the appropriation for final vacation pay and earned leave accrual budgets in an amount equal to the increases in actual expenses should they exceed budgeted amounts in their respective funds. J-43
vii.
The City Manager may authorize budget adjustments to increase budgeted amounts for depreciation and amortization should it be necessary to maintain compliance with the United States Generally Accepted Accounting Principles.
viii.
The City Manager may authorize budget adjustments to increase the appropriation for unforeseen legal expenses and liabilities.
ix.
The City Manager may authorize budget adjustments to increase the appropriation for Mutual Aid expenses in an amount equal to the increases in amounts to be reimbursed by other agencies.
x.
The City Manager may authorize budget adjustments to increase the appropriations in the Utilities Department for costs pertaining to the Core System Modernization Project and utility billing.
xi.
The City Council must authorize all transfers of funds from the City Council’s Contingency Account.
xii.
The City Manager may delegate any of the authority given to the City Manager under this resolution.
B. The City Council must authorize any increase in the number of authorized permanent personnel positions above the level identified in Attachment C. C. The City Manager may authorize the hiring of temporary or part-time staff as necessary within the limits imposed by the controls listed above. 9.
That the legal level of budgetary control is the fund level. Budgets may not legally be exceeded at the fund level without appropriate authorization by the City Council.
10.
That interest earned on grants may be appropriated during the year for the purpose for which the grant was received.
11.
That all appropriations in the Capital Improvement Program remaining unexpended as of June 30, 2026, are appropriated to FY 2026-27 in their respective project budgets.
12.
That all appropriations in the Strategic Digital Transformation Investment Program remaining unexpended as of June 30, 2026, are appropriated to FY 2026-27 in their respective project budgets.
13.
That all appropriations in the Operating Budget remaining unexpended as of June 30, 2026, related to developer deposits received for developer-funded studies not yet
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completed or grant awards received or expected for projects that are continuing into the next fiscal year are appropriated to FY 2026-27. 14.
That all appropriations for outstanding encumbrances as of June 30, 2026, are continued into FY 2026-27 for such contracts or obligations.
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of Directors of the Carlsbad Public Financing Authority, the Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 16th day of June, 2026, by the following vote, to wit: AYES:
Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS:
None.
ABSTAIN:
None.
ABSENT:
None. KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk (SEAL)
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RESOLUTION NO. 2026-120 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ACTING AS THE SUCCESSOR AGENCY FOR THE CARLSBAD REDEVELOPMENT AGENCY, ADOPTING THE FINAL OPERATING BUDGET OF THE SUCCESSOR AGENCY AND THE ENFORCEABLE DEBT OBLIGATIONS OF THE CITY OF CARLSBAD’S REDEVELOPMENT OBLIGATION RETIREMENT FUND FOR FISCAL YEAR 2026-27 AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS FOR BUDGET FUNDS WHEREAS, the City Council of the City of Carlsbad, California, has been designated as the Successor Agency for the Carlsbad Redevelopment Agency (“Successor Agency”) and, as such, is responsible for the administrative responsibilities required to complete the work of the former Carlsbad Redevelopment Agency and repay all enforceable debt obligations; and WHEREAS, the Successor Agency and the appointed Oversight Board have reviewed the proposed Operating Budget for the Successor Agency and previously approved the enforceable debt obligations to be repaid from the Redevelopment Obligation Retirement Fund for fiscal year (FY) 202627; and WHEREAS, the Successor Agency finds that the proposed Operating Budget for the Agency and the Oversight Board approved enforceable debt obligations of the Redevelopment Obligation Retirement Fund are consistent with the Recognized Obligation Payment Schedule prepared by the Successor Agency and approved by the Oversight Board; and WHEREAS, public hearings have been held as necessary prior to the adoption of the final operating budget. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, acting as Successor Agency for the Carlsbad Redevelopment Agency, as follows: 1.
That the above recitations are true and correct.
2.
That the proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The activity or projects for which this budget is intended to fund may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines.
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3.
That certain documents now on file in the Office of the City Clerk of the City of Carlsbad, entitled “Fiscal Year 2026-27 Preliminary Operating Budget,” presented at the Joint Special Meeting on May 19, 2026 as Exhibit 6 to Item No. 4, as amended, if necessary, in accordance with Attachment A to this Exhibit 5 are adopted as the final Operating Budget for the Successor Agency and the enforceable debt obligations of the City of Carlsbad’s Redevelopment Obligation Retirement Fund for FY 2026-27, along with any adjustments, if any, determined by the Successor Agency as set forth in the minutes of this Joint Special Meeting of June 16, 2026.
4.
That the amounts reflected as estimated revenues for FY 2026-27 as shown in Attachment A to this Exhibit 5 are adopted as the budgeted revenues for FY 2026-27.
5.
That the amount designated as FY 2026-27 Budget request in Attachment A to this Exhibit 5 is appropriated to the fund for which it is designated, and such appropriation shall not be increased except as provided in this resolution.
6.
That the following controls are placed on the use and transfer of budget funds: A. No expenditure of funds shall be authorized unless sufficient funds have been appropriated by the Successor Agency or City Manager, as described below. i.
The City Manager may authorize all transfers of funds from account to account within the same fund.
ii.
The City Manager may delegate any authority given to the City Manager under this resolution.
iii.
The City Manager may authorize budget adjustments involving offsetting revenues and expenditures; the City Manager may authorize increases in an appropriation for a specific purpose where the appropriation is offset by unbudgeted revenue designated for the specific purpose and is approved in advance by the Oversight Board.
7.
That all outstanding encumbrances as of June 30, 2026, are continued into FY 2026-27 for such contracts and obligations, as approved by the Oversight Board.
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council as Successor Agency to the Carlsbad Redevelopment Agency, the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of Directors of the Carlsbad Public Financing Authority and the Community Development Commission held on the 16th day of June, 2026, by the following vote, to wit: AYES:
Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS:
None.
ABSTAIN:
None.
ABSENT:
None. KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk (SEAL)
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RESOLUTION NO. 2026-121 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ESTABLISHING THE FISCAL YEAR 2026-27 APPROPRIATION LIMIT AS REQUIRED BY ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION AND STATE LAW WHEREAS, Article XIIIB of the California Constitution requires that governments annually establish a limit on the appropriation of proceeds of taxes commonly known as the “Gann Limit”; and WHEREAS, state law requires that this limit be presented to the governing body of each entity each fiscal year; and WHEREAS, the Gann Limit is based on a combination of a population factor and an inflation factor as outlined in Attachment A; and WHEREAS, the City Council desires at this time and deems it to be in the best public interest to adopt the annual Gann Limit for fiscal year (FY) 2026-27 as listed in Attachment A to this Exhibit 6. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.
That the above recitations are true and correct.
2.
That the proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The activity or projects for which this budget is intended to fund may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines.
3.
That the City Council of the City of Carlsbad establishes and adopts the FY 2026-27 appropriation limit of $707,147,053 as computed in Attachment A to this Exhibit 6.
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of Directors of the Carlsbad Public Financing Authority, the Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 16th day of June, 2026, by the following vote, to wit: AYES:
Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS:
None.
ABSTAIN:
None.
ABSENT:
None. KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk (SEAL)
J-50
RESOLUTION NO. 2026-122 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING CHANGES TO THE MASTER FEE SCHEDULE WHEREAS, the City Council of the City of Carlsbad, California, has the authority to establish fees for city services; and WHEREAS, from time to time the fees are reviewed and evaluated to maintain an adequate fee structure recovering costs for city services; and WHEREAS, the City Council has determined the cost of providing general and developmentrelated services; and WHEREAS, the City Council believes it is necessary for the City Manager to have the authority to adjust both city-hosted event fees and parks and recreation and library and cultural arts program, rental, and classes fees from time to time to remain competitive and within the market pricing for like programs and classes; and WHEREAS, the City Council finds it necessary to recover the costs for city services; and WHEREAS, the City Council has held the necessary public hearing and allowed for public comment on the establishment of the fees. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.
That the above recitations are true and correct.
2.
That the proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The activity or projects for which this budget is intended to fund may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines.
3.
That the changes to the Master Fee Schedule as shown in Attachment A are adopted.
4.
That the City Council authorizes the City Manager or a designee to set city-hosted event fees and parks and recreation and library and cultural arts program, rental, and class fees that are included in the Community Services Guide. The fees shall not exceed the J-51
fully burdened, including direct and indirect, costs of providing the program, rental, and class but shall be no less (except in the case of introductory, discount or promotional pricing) than the lowest fee charged for like kind programs or classes in similarly benchmarked Southern California cities. 5.
That the City Council authorizes the City Manager or a designee to change vehicle and traffic violation fees at the time, and by the same amount, as the state changes its portion of the fine. Any changes to these fees will be made to the current Master Fee Schedule.
6.
That this resolution shall become effective on Sept. 1, 2026; not sooner than 60 days after adoption in accordance with California Government Code Section 66017 for development-related service fees and development impact fees.
7.
That the park land in-lieu fee changes incorporated into Attachment A will become effective on July 1, 2026.
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of Directors of the Carlsbad Public Financing Authority, the Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 16th day of June, 2026, by the following vote, to wit: AYES:
Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS:
None.
ABSTAIN:
None.
ABSENT:
None. KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk (SEAL)
J-52
RESOLUTION NO. 2026-123 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, REDUCING THE CITY’S ASSET REPLACEMENT RESERVE BY $400,000 AND INCREASING THE UNASSIGNED FUND BALANCE IN THE GENERAL FUND BY THE SAME AMOUNT AS OF JULY 1, 2026 WHEREAS, the City Council of the City of Carlsbad, California, commits to maintaining its large machinery and equipment inventory; and WHEREAS, the city’s General Fund is responsible for approximately $60 million worth of machinery and equipment with useful lives ranging from 5 to 20 years; and WHEREAS, the city designated $7,600,000 from the city’s unassigned fund balance in the General Fund as of March 24, 2026, to the Asset Replacement Reserve in the General Fund; and WHEREAS, the Fire Department requested to use $235,000 of the Asset Replacement Reserve in accordance with the schedule in the Fiscal Year 2026-27 Operating Budget; and WHEREAS, the city’s General Fund is now projected to need approximately $7,200,000 over the next ten fiscal years to replace machinery and equipment that are expected to reach the end of their respective useful lives; and WHEREAS, with the reduction of $400,000 in the Asset Replacement Reserve, as of June 30, 2027, the General Fund Reserve would have a projected reserve ratio of 58% and $45 million in excess of the 40% or $100 million required by City Council Policy No. 74 – General Fund Reserve Guidelines; and WHEREAS, the Asset Replacement Reserve will continue to be evaluated and adjusted on an annual basis based upon the General Fund’s most recent 10-year asset replacement schedule. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.
That the above recitations are true and correct.
2.
That the proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The
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activity or projects for which this budget is intended to fund may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines. 3.
That the Asset Replacement Reserve in the General Fund will be reduced by $400,000 for a new balance of $7,200,000 as of July 1, 2026, which results in an increase of $400,000 to the city’s unassigned fund balance in the General Fund.
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of Directors of the Carlsbad Public Financing Authority, the City of Carlsbad Community Development Commission, and the City Council of the City of Carlsbad as Successor Agency to the Carlsbad Redevelopment Agency held on the 16th day of June, 2026, by the following vote, to wit: AYES:
Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS:
None.
ABSTAIN:
None.
ABSENT:
None. KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk (SEAL)
J-54
RESOLUTION NO. 2026-124 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE CITY OF CARLSBAD’S SHARE OF THE FISCAL YEAR 2026-27 OPERATING AND CAPITAL BUDGETS OF THE ENCINA WASTEWATER AUTHORITY WHEREAS, the City of Carlsbad is a Member Agency to the Encina Joint Powers Agreement (the “Encina Agreement”) entered into on July 13, 1961, for the acquisition, construction, ownership, operation and maintenance of the Encina Joint Sewer System; and WHEREAS, the Encina Agreement requires approval for the budget of the Encina Wastewater Authority, or EWA, by the Member Agencies following the recommendation of the Joint Advisory Committee, or JAC; and WHEREAS, the City Council of the City of Carlsbad desires to approve the EWA’s budget and provide for the payment of the city’s share of the EWA’s expenses in accordance with the allocation provided in the Encina Agreement; and WHEREAS, the Wastewater Fund is projected to have sufficient funds for the payments as they become due. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.
That the above recitations are true and correct.
2.
That the proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The activity or projects for which this budget is intended to fund may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines.
3.
That the City of Carlsbad’s estimated share of the fiscal year (FY) 2026-27 Operating Budget of the EWA as approved by the JAC on April 22, 2026, in the amount of $6,446,794 for Wastewater Plant Operations and $2,402,416 for the Carlsbad Water Recycling Facility Operations, as described in Attachment A, is approved.
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4.
That the City of Carlsbad’s estimated share of the FY 2026-27 Capital Budget of the EWA as approved by the JAC on April 22, 2026, in the amount of $4,128,041 for Wastewater Plant Capital and $262,000 for Carlsbad Water Recycling Facility Capital, as described in Attachment A, is approved.
5.
That the City Manager, or designee, is authorized to approve appropriations to the EWA estimated budgets listed above based on the City of Carlsbad’s actual share of the EWA budget.
6.
That all outstanding operating budget encumbrances as of June 30, 2026, are continued into FY 2026-27 for such contracts and obligations.
7.
That all capital budget appropriations and outstanding encumbrances as of June 30, 2026, are continued into FY 2026-27 for such contracts and obligations.
8.
That the City Manager, or designee, is authorized to make payments on behalf of the City of Carlsbad to the EWA in accordance with the budget as approved by the JAC pursuant to the Encina Agreement.
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of Directors of the Carlsbad Public Financing Authority, the Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 16th day of June, 2026, by the following vote, to wit: AYES:
Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS:
None.
ABSTAIN:
None.
ABSENT:
None.
KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk (SEAL)
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RESOLUTION NO. 2026-125 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, DETERMINING THAT THE FISCAL YEAR 2026-27 CAPITAL IMPROVEMENT PROGRAM IS CONSISTENT WITH THE GENERAL PLAN AND APPLICABLE CLIMATE ACTION PLAN MEASURES AND ACTIONS WHEREAS, the City Council of the City of Carlsbad, California, has reviewed the Capital Improvement Program for fiscal year (FY) 2026-27 and has held such public hearings as are necessary prior to adoption of the Capital Improvement Program; and WHEREAS, on June 16, 2026, the City Council reviewed for consistency with the General Plan goals and policies all Capital projects receiving an allocation of funds for FY 2026-27 pursuant to Carlsbad Municipal Code Section 2.24.040(B); and WHEREAS, the City Council also reviewed the FY 2026-27 Capital Improvement Program projects for consistency with applicable Climate Action Plan measures and actions; and WHEREAS, upon hearing and considering all testimony and arguments, if any, of all persons desiring to be heard, the City Council considered all factors relating to the City Council determination. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.
That the above recitations are true and correct.
2.
That the proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The activity or projects in the Capital Improvement Program may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines.
3.
That based on the evidence presented at the hearing, the City Council determines that the Capital Improvement Program for FY 2026-27 is consistent with the General Plan based on the following findings: a. The projects are consistent with the goals and policies of the city’s General Plan in that the projects are required to ensure the provision of adequate public facilities and services concurrent with or prior to need. J-57
b. The projects are consistent with applicable goals and policies of the Arts, History, Culture, and Education; Land Use and Community Design; Mobility; Public Safety; and Sustainability Elements, as described in Attachment A. c. Specific projects are consistent with, and support Climate Action Plan greenhouse gas reduction measures and actions, if applicable, as described in Attachment A. d. As required by the General Plan, the proposed improvements are consistent with the city’s Growth Management Plan in that the projects ensure that the necessary improvements are provided for facilities maintenance, park development, recycled water, sewer and storm drain projects, and circulation systems, in accordance with the performance standards contained in the city’s Growth Management regulations. 4.
This action is final as of the date this resolution is adopted by the City Council. The Provisions of Chapter 1.16 of the Carlsbad Municipal Code, “Time Limits for Judicial Review” shall apply: “NOTICE”
The time within which judicial review of this decision must be sought is governed by Code of Civil Procedure, Section 1094.6, which has been made applicable in the City of Carlsbad by Carlsbad Municipal Code Chapter 1.16. Any petition or other action seeking review must be filed in the appropriate court not later than the ninetieth day following the date on which this decision becomes final; however, if within ten days after the decision becomes final a request for the record is filed with a deposit in an amount sufficient to cover the estimated cost or preparation of such record, the time within which such petition may be filed in court is extended to not later than the thirtieth day following the date on which the record is either personally delivered or mailed to the party, or his attorney of record, if he has one. A written request for the preparation of the record of the proceedings shall be filed with the City Clerk, City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad, CA 92008.
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of Directors of the Carlsbad Public Financing Authority, the Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 16th day of June, 2026, by the following vote, to wit: AYES:
Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS:
None.
ABSTAIN:
None.
ABSENT:
None.
KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk (SEAL)
J-59
RESOLUTION NO. 2026-126 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING A LIST OF PROJECTS AND AUTHORIZING THE ALLOCATION OF ROAD MAINTENANCE AND REHABILITATION ACCOUNT FUNDS TO THE PAVEMENT MANAGEMENT AND CONCRETE REPLACEMENT PROGRAMS FOR FISCAL YEAR 2026-27 WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the state legislature and signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the city residents are aware of projects proposed for funding in our community as well as those projects that have been completed each fiscal year; and WHEREAS, the city must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account, or RMRA, created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, staff estimate the city will receive $3,265,115 in RMRA funding during fiscal year (FY) 2026-27 from SB1; and WHEREAS, a fund balance of $724,371 of unallocated funding exists, which when added with the FY 2026-27 estimated revenue projection of $3,265,115 results in a total RMRA funding of $3,989,486; and WHEREAS, this will be the tenth year in which the city is receiving SB 1 funding, which will enable the city to continue essential road maintenance and rehabilitation projects thereby increasing access and mobility options for the travelling public; and WHEREAS, the city has undergone a robust public process to solicit public input into the community’s transportation priorities as part of the Capital Improvement Program, or CIP, approval process; and WHEREAS, the city utilizes a pavement management system to develop the SB 1 project list to ensure that RMRA revenues are being used in a prioritized and cost-effective manner; and WHEREAS, the funding from SB 1 will help the city maintain and rehabilitate its network of roads and provide concrete improvements and similar projects in the future; and J-60
WHEREAS, the 2023 California Statewide Local Streets and Roads Needs Assessment found that the city’s streets and roads are in a good condition, and this revenue will help the city increase the overall quality of its road system; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety will have a significant benefit to the community. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.
That the above recitations are true and correct.
2.
That the proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The projects utilizing RMRA funding may require preparation of an environmental document in accordance with CEQA and CEQA Guidelines.
3.
That the previously proposed and adopted Pavement Management Program, CIP Project No. 6001, as further described herein, will be funded in part with FY 2026-27 RMRA revenues. With the relisting of this project in the adopted fiscal year resolution, the city is reaffirming to the public and the State the intent to partially fund these projects with RMRA revenues: a. Project Title: Pavement Resurfacing Project 2026 b. Description: resurface and rehabilitate a selection of publicly maintained streets on an annual basis c. Location: various residential streets throughout the city based on pavement condition, including the following collector and arterial streets: i.
El Camino Real between Levante Street and Calle Barcelona
ii.
El Camino Real between Chestnut Avenue and Tamarack Avenue
iii.
Palomar Airport Road between Paseo del Norte and El Camino Real
d. Estimated Project Schedule: July 2025 – Aug. 2027
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e. Estimated Useful Life: slurry seal has a useful life of approximately seven years, and asphalt concrete overlay has a useful life of approximately 20 years 4.
That the Pavement Management Program, CIP Project No. 6001, as further described herein, will be funded in part with FY 2026-27 RMRA revenues: a. Project Title: Pavement Resurfacing Project 2027 b. Description: resurface and rehabilitate a selection of publicly maintained streets on an annual basis c. Location: various residential streets throughout the city based on pavement condition, including the following collector and arterial streets: i.
Palomar Airport Road from El Camino Real to Melrose Drive
ii.
Cannon Road from El Camino Real to College Boulevard
iii.
Carlsbad Blvd from northern city limits to Mountain View Drive
iv.
Carlsbad Blvd from Avenida Encinas to southern city limits
v.
El Camino Real from Haymar Drive to Marron Road
d. Estimated Project Schedule: June 2027 – Aug. 2028 e. Estimated Useful Life: slurry seal has a useful life of approximately seven years, and asphalt concrete overlay has a useful life of approximately 20 years 5.
That the Concrete Repair/Replacement Program, CIP Project No. 6013, as further described herein, will be funded in part with FY 2026-27 RMRA revenues: a. Project Title: Concrete Repair/Replacement Project 2027 b. Description: repair and replace broken and uplifted concrete in the right of way c. Location: various residential locations throughout the city based on concrete condition, including locations along the following collector and arterial streets: i.
Cannon Road from El Camino Real to College Boulevard
ii.
Carlsbad Blvd from northern city limits to Mountain View Drive
iii.
Carlsbad Blvd from Avenida Encinas to southern city limits
d. Estimated Project Schedule: June 2027 – Dec. 2027 e. Estimated Useful Life: concrete improvements typically have a useful life of approximately 20 to 40 years
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6.
That funding to allocate RMRA funding in the amount of $2,997,000 to the Pavement Management Program, CIP Project No. 6001, and $395,000 to the Concrete Replacement Program, CIP Project No. 6013 was incorporated into the in the FY 202627 CIP budget.
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of Directors of the Carlsbad Public Financing Authority, the Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 16th day of June, 2026, by the following vote, to wit: AYES:
Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS:
None.
ABSTAIN:
None.
ABSENT:
None.
KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk (SEAL)
J-63
RESOLUTION NO. 2026-129 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE APPROPRIATION OF $294,926 FROM THE GENERAL FUND TO THE FIRE DEPARTMENT’S FISCAL YEAR 2026-27 OPERATING BUDGET AND THE CONVERSATION OF ONE PART-TIME FIRE PREVENTION SPECIALIST POSITION TO A FULL-TIME ASSISTANT FIRE MARSHAL POSITION TO SUPPORT PHASE 2 OF THE WILDFIRE MITIGATION PLAN WHEREAS, the City Council authorized funding on February 25, 2025, for the development of a comprehensive Wildfire Mitigation Plan to address increasing wildfire risk within the City of Carlsbad; and WHEREAS, the Wildfire Mitigation Plan is a proactive, two-phase framework designed to guide city policy, investment and wildfire risk-reduction strategies; and WHEREAS, Phase 1 of the Wildfire Mitigation Plan, consisting of a Wildfire Hazard and Risk Assessment, has been completed and provides a comprehensive evaluation of wildfire hazards, fire behavior, structural vulnerability, defensible space conditions, operational constraints, and mitigation opportunities throughout the city; and WHEREAS, Phase 2 of the Wildfire Mitigation Plan will include development of a Community Wildfire Protection Plan through collaboration with residents, community stakeholders, regulatory agencies, land managers, and city staff to identify and prioritize wildfire mitigation strategies and implementation actions; and WHEREAS, the City Council authorized the City Manager to initiate Phase 2 of the Wildfire Mitigation Plan on June 9, 2026; and WHEREAS, the Fire Department is requesting the conversion of one existing part-time Fire Prevention Specialist position to one full-time Assistant Fire Marshal position to oversee Phase 2 of the Wildfire Mitigation Plan, including development of a Community Wildfire Protection Plan and associated stakeholder engagement, planning, environmental review, and project development activities; and WHEREAS, the costs associated with the conversion of this position include salary, benefits, training, and equipment; and WHEREAS, the City Council desires to include funding for the position conversion and community outreach budget in the fiscal year 2026-27 operating budget; and J-64
WHEREAS, the appropriation required for these items in fiscal year 2026-27 is $294,926. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.
That the above recitations are true and correct.
2.
That this action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
3.
That the City Manager or designee is authorized to convert one existing part-time Fire Prevention Specialist position to one full-time Assistant Fire Marshal position in the Fire Department to oversee Phase 2 of the Wildfire Mitigation Plan.
4.
That the City Manager or designee is authorized to appropriate a total of $294,926 from the General Fund to the Fire Department’s FY 2026-27 operating budget, including $75,000 for the purchase and outfitting of one vehicle.
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of Directors of the Carlsbad Public Financing Authority, the Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 16th day of June, 2026, by the following vote, to wit: AYES:
Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS:
None.
ABSTAIN:
None.
ABSENT:
None. KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk (SEAL)
J-65
RESOLUTION NO. 1807 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING THE WATER DISTRICT’S FINAL OPERATING BUDGET, STRATEGIC DIGITAL TRANSFORMATION INVESTMENT PROGRAM AND CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEAR 2026-27 AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS FOR BUDGET FUNDS WHEREAS, the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad, California, has reviewed the proposed final Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program for fiscal year (FY) 2026-27 and has held such public hearings as are necessary prior to the adoption of the final budgets. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad, California, as follows: 1.
That the above recitations are true and correct.
2.
That the proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The activity or projects for which this budget is intended to fund may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines.
3.
That certain documents now on file in the Office of the City Clerk of the City of Carlsbad, entitled “Fiscal Year 2026-27 Preliminary Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program” presented at the Joint Special Meeting on May 19, 2026 as Exhibit 6 to Item No. 4, as amended, if necessary, in accordance with Attachments A and B to this Exhibit 2 are adopted as the final Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program for the Carlsbad Municipal Water District for FY 2026-27, along with any adjustments, if any, determined by the Board of Directors as set forth in the minutes of this Joint Special Meeting on June 16, 2026.
4.
That the amounts reflected as estimated revenues for FY 2026-27 as shown in Attachment A are adopted as the budgeted revenues for FY 2026-27.
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5.
That the amounts designated as FY 2026-27 Budget request in Attachments A and B to this Exhibit 2 and the City of Carlsbad’s estimated share of the FY 2026-27 Operating and Capital Budget of Encina Wastewater Authority attributable to the Carlsbad Water Recycling Facility as presented in Attachment C to this Exhibit 2 are appropriated to the fund for which they are designated, either operating or capital improvement, and such appropriation shall not be increased except as provided in this resolution.
6.
That total appropriations may only be increased or decreased by the Board of Directors by passage of a resolution amending the budget except as provided in this resolution.
7.
That the following controls are placed on the use and transfer of budget funds: A. No expenditure of funds shall be authorized unless sufficient funds have been appropriated by the Board of Directors or Executive Manager as described below. i.
The Executive Manager may authorize all transfers of funds from account to account within the same fund.
ii.
The Executive Manager may authorize budget adjustments involving offsetting revenues and expenditures; the Executive Manager may authorize increases in an appropriation for a specific purpose where the appropriation is offset by unbudgeted revenue designated for the specific purpose.
iii.
The Executive Manager may authorize increases in purchased water appropriations in an amount equal to the same percent that water sales exceed the amount of the original revenue estimate.
iv.
The Executive Manager may authorize budget adjustments to increase the appropriation for unforeseen legal expenses and liabilities.
v.
The Executive Manager may delegate the authority given to the Executive Manager under this resolution.
B. The Board of Directors must authorize any increase in the number of authorized permanent personnel positions chargeable to the water and recycled water enterprise funds above the level identified in the final Budget. The Executive Manager may authorize the hiring of temporary or part time staff chargeable to the water and recycle water enterprise funds as necessary within the limits imposed by the controls listed above.
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8.
That all appropriations for outstanding encumbrances as of June 30, 2026, are continued into FY 2026-27 for such contracts and obligations.
9.
That interest earned on grants may be appropriated during the year for the purpose for which the grant was received.
10.
That all appropriations for Capital Improvement Projects remaining unexpended as of June 30, 2026, are appropriated to FY 2026-27 in their respective project budgets.
11.
That all appropriations in the Strategic Digital Transformation Investment Program remaining unexpended as of June 30, 2026, are appropriated to FY 2026-27 in their respective project budgets.
12.
That all appropriations in the Operating Budget remaining unexpended as of June 30, 2026, related to grant awards received or expected for projects that are continuing into the next fiscal year are appropriated to FY 2026-27.
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Board of Directors of the Carlsbad Municipal Water District, the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Public Financing Authority, the Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 16th day of June, 2026, by the following vote, to wit: AYES:
Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS:
None.
ABSTAIN:
None.
ABSENT:
None. KEITH BLACKBURN, President
SHERRY FREISINGER, Secretary (SEAL)
J-68
RESOLUTION NO. 1808 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING CHANGES TO THE MASTER FEE SCHEDULE WHEREAS, the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad, California, has the authority to establish fees for district services; and WHEREAS, from time to time the fees are reviewed and evaluated to maintain an adequate fee structure recovering costs for district services; and WHEREAS, the Board of Directors has determined the cost of providing water services; and WHEREAS, the Board of Directors finds it necessary to recover the costs for water services; and WHEREAS, the Board of Directors has held the necessary public hearing and allowed for public comment on the establishment of the fees. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad, California, as follows: 1.
That the above recitations are true and correct.
2.
That the proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The activity or projects for which this budget is intended to fund may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines.
3.
That the changes to the Master Fee Schedule as shown in Attachment A are adopted.
4.
That this resolution shall become effective on Sept. 1, 2026; not sooner than 60 days after adoption in accordance with California Government Code Section 66017 for water fees.
J-69
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Board of Directors of the Carlsbad Municipal Water District, the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Public Financing Authority, the Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 16th day of June, 2026, by the following vote, to wit: AYES:
Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS:
None.
ABSTAIN:
None.
ABSENT:
None. KEITH BLACKBURN, President
SHERRY FREISINGER, Secretary (SEAL)
J-70
RESOLUTION NO. 582 A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING THE FINAL OPERATING BUDGET OF THE CARLSBAD HOUSING AUTHORITY FOR FISCAL YEAR 2026-27 AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS FOR BUDGET FUNDS WHEREAS, the Community Development Commission of the City of Carlsbad, California, has reviewed the Operating Budget for the Carlsbad Housing Authority for fiscal year (FY) 2026-27 and has held such public hearings as are necessary prior to the adoption of the final budget. NOW, THEREFORE, BE IT RESOLVED by the Community Development Commission of the City of Carlsbad, California, as follows: 1.
That the above recitations are true and correct.
2.
That the proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The activity or projects for which this budget is intended to fund may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines.
3.
That certain documents now on file in the Office of the City Clerk of the City of Carlsbad, entitled “Fiscal Year 2026-27 Preliminary Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program,” presented at the Joint Special Meeting on May 19, 2026 as Exhibit 6 to Item No. 4, as amended, if necessary, in accordance with Attachments A of this Exhibit 3 are adopted as the final Operating Budget for the Carlsbad Housing Authority for FY 2026-27, along with any adjustments, if any, determined by the Commission as set forth in the minutes of this Joint Special Meeting on June 16, 2026.
4.
That all funding for planning and administrative expenses have been determined to be necessary and appropriate for implementation of the Carlsbad Housing Authority’s activities in FY 2026-27.
J-71
5.
That the amounts reflected as estimated revenues for FY 2026-27 as shown in Attachment A are adopted as the budgeted revenues for FY 2026-27.
6.
That the amount designated as FY 2026-27 Budget request in Attachment A to this Exhibit 3 is appropriated to the fund for which it is designated, and such appropriation shall not be increased except as provided in this resolution.
7.
That the following controls are placed on the use and transfer of budget funds: A. No expenditure of funds shall be authorized unless sufficient funds have been appropriated by the Commission or Executive Director as described below. i.
The Executive Director may authorize all transfers of funds from account to account within the same fund.
ii.
The Executive Director may delegate any of the authority given to the Executive Director under this resolution.
iii.
The Executive Director may authorize budget adjustments involving offsetting revenues and expenditures; the Executive Director may authorize increases in an appropriation for a specific purpose where the appropriation is offset by unbudgeted revenue designated for the specific purpose.
B. The Commission must authorize any increase in the number of authorized permanent personnel positions chargeable to the Carlsbad Housing Authority above the level identified in the final budget. The Executive Director may authorize the hiring of temporary or part time staff chargeable to the Carlsbad Housing Authority as necessary within the limits imposed by the controls listed above. 8.
That all appropriations for any state or federal grant funds in the Operating Budget remaining unexpended as of June 30, 2026, are appropriated to FY 2026-27.
9.
That all outstanding encumbrances as of June 30, 2026, are continued into FY 2026-27 for such contracts and obligations.
J-72
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Community Development Commission, the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of Directors of the Carlsbad Public Financing Authority, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 16th day of June, 2026, by the following vote, to wit: AYES:
Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS:
None.
ABSTAIN:
None.
ABSENT:
None. KEITH BLACKBURN, Chairperson
GEOFF PATNOE, Secretary (SEAL)
J-73
RESOLUTION NO. 583 A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING CHANGES TO THE MASTER FEE SCHEDULE WHEREAS, the Community Development Commission of the City of Carlsbad, California, has the authority to establish fees for housing services; and WHEREAS, from time to time the fees are reviewed and evaluated to maintain an adequate fee structure recovering costs for housing services; and WHEREAS, the Community Development Commission has determined the cost of providing housing services; and WHEREAS, the Community Development Commission finds it necessary to recover the costs for housing services; and WHEREAS, the Community Development Commission has held the necessary public hearing and allowed for public comment on the establishment of the fees. NOW, THEREFORE, BE IT RESOLVED by the Community Development Commission of the City of Carlsbad, California, as follows: 1.
That the above recitations are true and correct.
2.
That the proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The activity or projects for which this budget is intended to fund may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines.
3.
That the changes to the Master Fee Schedule as shown in Attachment A are adopted.
4.
That this resolution shall become effective on Sept. 1, 2026; not sooner than 60 days after adoption in accordance with California Government Code Section 66017 for housing fees.
J-74
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Community Development Commission, the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of Directors of the Carlsbad Public Financing Authority, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 16th day of June, 2026, by the following vote, to wit: AYES:
Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS:
None.
ABSTAIN:
None.
ABSENT:
None.
KEITH BLACKBURN, Chairperson
GEOFF PATNOE, Secretary (SEAL)
J-75
RESOLUTION NO. 104 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD PUBLIC FINANCING AUTHORITY OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING THE FINAL OPERATING BUDGET AND CAPITAL IMPROVEMENT PROGRAM OF THE CROSSINGS AT CARLSBAD MUNICIPAL GOLF COURSE FOR FISCAL YEAR 2026-27 AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS FOR BUDGET FUNDS WHEREAS, the Board of Directors of the Carlsbad Public Financing Authority has reviewed the proposed final Operating Budget and Capital Improvement Program for The Crossings at Carlsbad Municipal Golf Course for fiscal year (FY) 2026-27 and has held such public hearings as are necessary prior to the adoption of the final budgets. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Public Financing Authority as follow: 1.
That the above recitations are true and correct.
2.
That the proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The activity or projects for which this budget is intended to fund may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines.
3.
That certain documents now on file in the Office of the City Clerk of the City of Carlsbad, entitled “Fiscal Year 2026-27 Preliminary Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program,” presented at the Joint Special Meeting on May 19, 2026 as Exhibit 6 to Item No. 4, as amended, if necessary, in accordance with Attachment A to this Exhibit 4 are adopted as the final Operating Budget and Capital Improvement Program for The Crossings at Carlsbad Municipal Golf Course for FY 2026-27, along with any adjustments, if any, determined by the Board of Directors as set forth in the minutes of this Joint Special Meeting on June 16, 2026.
4.
That the amounts reflected as estimated revenues for FY 2026-27 as shown in Attachment A are adopted as the budgeted revenues for FY 2026-27.
J-76
5.
That the amount designated as FY 2026-27 Budget request in Attachment A to this Exhibit 4 is appropriated to the fund for which it is designated, and such appropriation shall not be increased except as provided in this resolution.
6.
That the following controls are placed on the use and transfer of budget funds: A. No expenditure of funds shall be authorized unless sufficient funds have been appropriated by the Board of Directors or Executive Director as described below. i.
The Executive Director may authorize all transfers of funds from account to account within the same fund.
ii.
The Executive Director may delegate the authority to make budget transfers and adjustments.
iii.
The Executive Director may authorize budget adjustments involving offsetting revenues and expenditures; the Executive Director may authorize increases in an appropriation for a specific purpose where the appropriation is offset by unbudgeted revenue which is designated for the specific purpose.
iv.
The Executive Director may delegate any of the authority given to him or her under this resolution.
7.
That all outstanding encumbrances as of June 30, 2026, are continued into FY 2026-27 for such contracts and obligations.
8.
That all appropriations in the Capital Improvement Program remaining unexpended as of June 30, 2026, are appropriated to FY 2026-27 for their respective project budgets.
J-77
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Board of Directors of the Carlsbad Public Financing Authority, the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the City of Carlsbad Community Development Commission, and the City Council of the City of Carlsbad as Successor Agency to the Carlsbad Redevelopment Agency held on the 16th day of June, 2026, by the following vote, to wit: AYES:
Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS:
None.
ABSTAIN:
None.
ABSENT:
None. KEITH BLACKBURN, Chairperson
SHERRY FREISINGER, Secretary (SEAL)
J-78