Carlsbad council backs $20.3 million in one-time uses of surplus, boosts pension trust and shifts $6 million to stormwater

The Carlsbad City Council on a unanimous vote approved resolutions to carry forward prior-year unspent budgets, make a $7.5 million contribution to the city’s Section 115 pension trust and transfer $6 million to the stormwater protection program.

City Finance Director Zach Korach told the council that preliminary fiscal year 2024–25 figures show $245,000,000 in revenues against $233,000,000 in expenditures, producing an $11,700,000 surplus. When combined with $14,000,000 in unspent and unencumbered budgets as of June 30, 2025, staff said the council’s total carry-forward authority is about $25,700,000. Korach said staff’s recommended one-time uses total $20,300,000, leaving roughly $5,400,000 in remaining authority.

The nut of the proposal was three items: (1) carry-forward of authorized but uncompleted projects and purchases, (2) a $7.5 million contribution that represents the third of five planned annual Section 115 trust payments aimed at shoring up pension funding, and (3) a $6 million transfer to the stormwater protection program to address a projected operating deficit in that enterprise.

Korach described the city’s reserve position and pension context in detail. He said the general fund reserve stood at $167,000,000 — about a 69% reserve ratio — as of June 30, 2025. Under…