Carlsbad adopts FY 2025–26 budget, opts to prepay CalPERS bill and asks staff for turf and trail analyses

Carlsbad City Council adopted the city’s FY 2025–26 operating budget, strategic digital transformation plan and capital improvement program, and approved a one‑time decision to prepay the city’s CalPERS unfunded actuarial liability (UAL) payment for fiscal year 2026.

Deputy City Manager Laura Rocha and Finance Director Zach Korach presented the budget and a five‑year forecast showing the General Fund reserves projected to increase to about 61% (about $147 million), above the city’s 40% target. The budget package includes a 1.8% general fund increase, $2.6 million for a front‑line ladder fire truck, funding to reclassify EMTs to paramedic firefighters, investments in climate action measures, funds for additional Sunday library hours, and allocations for capital projects including Veterans Memorial Park and the Orion Center.

The council took separate action on how to pay the city’s annual CalPERS contribution. CalPERS offers a 3% discount for an upfront prepayment of the unfunded liability; staff recommended monthly payments because of market volatility. City Treasurer Christian Peacocks urged prepayment, saying it “will save the city over $600,000” and improves long‑term finances by reducing the unfunded liability. After discussion, the council voted to prepay the UAL and reduce budget authority accordingly; staff said the motion will free roughly $600,000 in one‑time budget authority in FY26.

The budget hearing drew an hour and a half of public comment on synthetic turf, park rangers and trail work. Multiple speakers urged the council to reconsider planned synthetic turf replacements in the capital program, citing environmental and health concerns and urging a comparative life‑cycle analysis of synthetic turf versus natural grass options. Speakers included Diane Wilkie (Safe Healthy Playing Fields), Vanessa Forsyth (Carlsbad Sierra Club), Mike McMahon, and others who asked the council to delay synthetic turf replacement contracts until staff completes a study of environmental, health and lifecycle cost impacts. Parks Director Kyle Lancaster told the council staff previously completed a turf cost and health comparison in 2019 and intends to update that analysis and bring plans and specifications back to council in mid‑fall before contracts are awarded.

Several speakers and conservation groups also asked for more park rangers to patrol open space and trails. The police chief confirmed the city’s two current rangers are stretched thin; adding two additional rangers was discussed. The council debated adding one ranger in FY26 and whether to use any prepayment savings for that purpose. A motion to add one ranger at this meeting failed 3–2. Councilmembers acknowledged the need for more ranger staffing but also noted the city recently budgeted for six new sworn personnel in the police department.

Council also heard requests to accelerate work on the Agua Hedionda South Shore trail segments. Staff said the project timeline is tied to approvals from the California Public Utilities Commission (PUC) and the Coastal Commission; PUC approval could take three to five years, so staff recommended phased design, environmental and preliminary work that could be carried out without risking funds on sections that depend on external approvals.

After the public hearing and discussion, the council adopted the resolutions to approve the FY 2025–26 budget package. City staff will return with: (1) an updated comparative analysis of synthetic turf and natural grass alternatives when the first turf replacement project (Poinsettia Community Park) is brought forward in mid‑fall; (2) a plan for the Agua Hedionda South Shore trail funding and timing; and (3) clarification of ongoing staffing needs for rangers versus sworn positions.