Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget topic
No spam. Unsubscribe anytime.
Carlsbad unveils FY 2026–27 preliminary budget; council sets public hearing for June 16
Summary
Staff presented a preliminary FY 2026–27 budget that would raise the general fund by 2.8%, project reserves at about $145 million (58% of policy target), and recommends one-time transfers (including $8 million to infrastructure and $5 million to stormwater); council voted to move the budget items to public hearing and adopt related resolutions.
Carlsbad city staff presented the preliminary fiscal year 2026–27 operating budget and supporting documents and the council voted to set the matter for public hearing on June 16.
Deputy City Manager Laura Rocha framed the budget approach and priorities and Finance Director Zach Korich detailed revenue and expenditure projections. Staff proposed a 2.8% increase in the general fund over the prior year and described a conservative revenue approach driven in part by a one-time taxpayer error correction that reduced sales-tax estimates by about $4 million. Korich said proposed general fund reserves would total roughly $145 million if council adopts recommended transfers, a level he noted is about 58% of the general fund and about $45 million above the council’s 40% policy target.
Staff recommended a $8 million one-time transfer to the infrastructure replacement fund and proposed a $5 million one-time transfer to the stormwater protection program. Korich told the council that the recommended budget includes targeted investments in public safety, infrastructure, sustainability, and a modest general fund increase while maintaining healthy reserves.
On fees and cost recovery, staff discussed the recently completed user fee study and the master fee schedule: the citywide average cost recovery is roughly 45%, with about $6.7 million unrecovered in a typical year. To ease implementation, staff recommended amending policy to allow a 3–5 year phasing for fee increases and in some cases longer with council approval.
Council members asked about pension funding and CalPERS, fee phase-in mechanics, the timing of the Monroe Street Pool reopening, and the planned community budget workshop at the Faraday Center on May 21. Finance staff noted the city has set aside $30 million in a section 115 pension trust and that the remaining shortfall between a 76% and 80% funded pension position was about $10 million.
Council moved to adopt the resolutions related to the budget item and to set the public hearing on June 16; the motion carried. Staff will present the budget at the public workshop and return the item for final action at the June 16 meeting.
What’s next: A community budget workshop is scheduled for May 21 at the Faraday Center (5:30–7:30 p.m.). The council will consider final adoption after public hearing on June 16.
