CARLSBAD — The Carlsbad City Council has adopted a balanced operating budget for the upcoming fiscal year, including several new investments and a projected $1.1 million surplus.
At its June 17 meeting, the council approved a general fund budget of approximately $242.8 million in expenditures, with revenues estimated at $243.9 million. While the surplus may seem modest, city officials noted that increased revenues from the prior year allowed for targeted spending and a boost to the city’s reserves, which are projected to grow from 55% to 61% of the general fund.
The council’s minimum reserve requirement is 40%.
Among the budget’s major investments is a $2.6 million purchase of a new aerial ladder fire truck, designed to enhance the Fire Department’s service capacity. The city will also spend $403,000 to reclassify six EMTs as paramedic firefighters, part of a multi-year staffing effort.
To support the city’s Climate Action Plan, the budget includes nearly $440,000 to convert energy used for city operations to 100% renewable sources. The city will also spend $397,000 to hire three full-time employees in finance, human resources, risk management and fleet maintenance.
Additionally, the city plans to accelerate its transition away from combustion engines with the purchase of 14 electric and 15 hybrid vehicles.
Other allocations include $90,000 to expand Sunday library hours and $113,000 to provide more support for the newly renovated Schulman Auditorium at Dove Library.
Construction of Veterans Memorial Park, a long-anticipated project, is also set to begin this year. The nearly 94-acre site will honor military veterans while preserving more than half the land as protected habitat, according to the city.
The budget also continues funding for mid-year initiatives previously approved by the council. These include $550,000 for brush and vegetation management across the city’s 6,500 acres of preserves and hazard reduction in urban forests such as Hosp Grove.
Six new positions will be added to the Police Department to improve emergency response times, support traffic control during special events, and bolster digital forensics capabilities, particularly in addressing internet crimes against children.
City staff project that Carlsbad will not face a budget deficit until at least 2031.
“We don’t expect expenses to exceed revenues until at least 2031, which is no sooner than we projected last year,” said Deputy City Manager Laura Rocha.
The city also reported progress toward its pension funding goal of 80%, with current funding at 77%. Carlsbad will continue to prepay its unfunded pension liability with an $18.1 million payment in July. By avoiding the costlier monthly payment option, the city reduced its pension expenses by about $600,000, which increased the originally projected $500,000 surplus to $1.1 million.
Councilmember Melanie Burkholder proposed using the extra funds to hire an additional park ranger, but the council opted to defer that discussion to next year’s budget process.
During the public comment period, several residents urged the city to consider replacing synthetic turf fields with natural grass, citing health concerns. The council is expected to revisit the issue this fall.
The new fiscal year begins on July 1.
