Carlsbad council adopts FY 2026–27 budget, approves digital program and CIP

The Carlsbad City Council on June 16 adopted the city’s Fiscal Year 2026–27 operating budget, a five‑year Strategic Digital Transformation Investment (SDTI) program and the capital improvement program (CIP), voting to approve resolutions tied to the package.

The budget package, presented by Deputy City Manager for Administrative Services Laura Rocha and Finance Director Zach Korach (transcribed variably as Korich), projects general‑fund reserves of about $145 million (58 percent) at the end of FY 26–27 and includes a recommended one‑time transfer of $8 million to the infrastructure replacement fund.

Korach told the council the general‑fund reserve was $131,000,000 (55 percent) in FY25, rose to $152,000,000 (61 percent) in FY26 and is projected to end FY26–27 at about $145,000,000 (58 percent). He said the modest year‑over‑year decrease reflects the proposed one‑time transfer to fund future capital projects.

The package also includes a proposed SDTI program valued at $42,100,000 over five years and three newly proposed projects for the upcoming year: $500,000 for automated license‑plate reader replacements, $500,000 for intersection traffic detection upgrades and $100,000 for online services to support ADA compliance.

The staff presentation described revenue assumptions that would increase general‑fund revenues by roughly $6.3 million (2.6 percent) and proposed expenditures up $7.0 million (2.9 percent), driven in part by negotiated labor agreements and CalPERS costs. The presentation also detailed a wildfire mitigation Phase 2 request with an approximate one‑time cost of $294,000 and $220,000 ongoing to support a reclassification to an assistant fire marshal, a vehicle purchase and expanded outreach and inspection programs.

Councilmember Teresa Acosta recused herself for the portion of the discussion and vote covering the core modernization project because she performs work for a project vendor; the city attorney clarified procedures for hearing public testimony and completing a segmented vote on that portion of the budget before Acosta returned to the dais.

Brett Shenzenbach, speaking for the Chamber of Commerce during public testimony, praised the city’s fiscal stewardship and voiced the chamber’s support for the budget and capital projects.

After council discussion, a motion to adopt the staff recommendations — including the resolutions tied to item 6 — passed. The council voted to approve the segmented core modernization portion while Acosta was recused, then adopted the remaining resolutions; the clerk announced the final vote as unanimous.

The council’s actions authorize staff to proceed with the budget implementation and the SDTI and CIP projects. Staff said the College Boulevard extension cost‑analysis and design options will be brought back to council for direction after the requested analysis is complete.

The council adjourned following remarks thanking staff and noting upcoming community events.