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Council receives midyear economic update; approves roughly $490,000 in general fund additions
Summary
Carlsbad received an economic update and a midyear budget review. Staff reported $18.7 billion gross regional product for the area, cooling hiring, a sales-tax shortfall driven by a one-time adjustment, and requested approximately $490,000 in general-fund additions (including $150,000 for ambulance coverage and $200,000 for medical-transport reimbursement); council approved the resolutions unanimously.
Economic Development Director Matt Sanford and Finance Director Zach Korach presented the city's second-quarter economic update and the midyear budget review. Sanford said Carlsbad's estimated gross regional product for 2025 was about $18.7 billion and described mixed sector performance: hospitality, tourism, real estate and health sectors showed modest expansion while some manufacturing and R&D segments softened.
Korach reviewed midyear general fund revenues and explained that, while total revenues were roughly in line with expectations, sales tax receipts showed a notable decline tied in part to a one-time taxpayer correction that reduced receipts by $3.9 million (13% nominal; a 2.7% economically adjusted decline). Property tax growth and transient-occupancy tax were largely steady; investment income improved. Korach said the adopted general fund budget was $242 million, with a working budget of about $263.6 million and roughly 47% of budget spent through the midpoint of the fiscal year.
Staff requested approximately $490,000 in general-fund appropriations, noting two largely revenue-offset items: $150,000 to cover ambulance services associated with regional mutual-aid/staffing impacts and $200,000 for a medical-transportation reimbursement program. Non-general-fund requests of approximately $275,000 were described for vehicle purchases and channel maintenance, driven largely by Carlsbad Municipal Water District needs.
After council questions about whether the ambulance funding was ongoing, staff said the $150,000 is expected to be a one-time appropriation tied to temporary service disruptions and that Oceanside anticipates resolving its staffing issues before the fiscal year end. Councilmembers thanked staff for the update and, on motion, moved to adopt the recommended resolutions; the motions passed unanimously.
What happens next: Staff will continue monitoring revenues and bring additional appropriations requests to council if needed; staff will present the third-quarter report in May 2026 and the preliminary budget in May.
