CARLSBAD — Carlsbad leaders praised a proposed city budget that keeps spending growth below statewide inflation for a second straight year while maintaining strong reserve levels and investments in public safety, parks and infrastructure.
Council members Melanie Burkholder and Kevin Shin commended the budget proposal, with Shin calling the overall plan “stellar.”
The proposed $249.1 million General Fund budget, which covers most day-to-day city functions, represents a 2.8% increase over the current fiscal year. By comparison, California’s statewide inflation rate in April was 3.7%, according to city documents.
“I’m unbelievably impressed,” Shin said. “Everybody who was a part of this budget preparation team should be strutting when this is all said and done. You created a budget that’s under the current rate of inflation. That’s a big deal. Bigger than I think most people can understand.”
At the May 19 meeting, City Manager Geoff Patnoe noted that this would mark the second consecutive year in which the city’s budget increased at a rate below inflation.
“We recognize the strong financial position our city continues to maintain even during a period of some ongoing economic uncertainty,” Patnoe said.
The city’s policy requires General Fund reserves to remain at least 40% of operating expenditures. The proposed budget projects reserves at 58%, exceeding the city’s minimum threshold by $45 million, according to budget documents.
“While the city does remain in a very financially strong position, we continue to plan and prepare for both current and future challenges that lie ahead,” Finance Director Zach Korach said.
The budget includes several investments in public safety.
Deputy City Manager Laura Rocha said the city plans to convert six emergency medical technicians into paramedic firefighters as part of a multiyear effort.
“This allows the department to increase its service capacity and ability without increasing its employee count,” Rocha said.
The Carlsbad Fire Department’s personnel costs are projected to rise 11%, from $34.6 million in the current budget to $38.2 million in the proposed budget, while maintaining the same staffing levels of 124 full-time employees and 10.5 hourly positions, according to city documents.
The proposed budget would also increase the Carlsbad Police Department’s overall funding by 3%.
Korach said much of the department’s planned 9.3% increase in personnel costs is tied to the addition of the department’s Community-Oriented Policing and Problem-Solving team, commonly known as COPPS.
He added that the Fire Department budget includes a 24% reduction in maintenance and operations funding, largely due to the completion of last year’s one-time $2.6 million aerial ladder truck purchase.
Councilmember Teresa Acosta said the budget reflected the City Council’s five-year strategic plan and demonstrated the city was “tying our funding priorities to what the community wants.”
The budget also includes investments in parks and recreational facilities throughout the city.
The Monroe Street Pool is scheduled to open later this year and will require ongoing maintenance and lifeguard staffing. Construction on the 93.7-acre Veterans Memorial Park is expected to begin later this summer. The city also plans to add eight pickleball courts, split between Stagecoach Community Park and Calavera Hills Community Park.
Korach said “infrastructure, maintenance and replacement needs continue to grow” in order “to keep up with the pace of the growing list of projects and funding needs city wide.”
The budget proposal also includes a one-time $5 million transfer from the General Fund to the Solid Waste Management Enterprise Fund for stormwater projects throughout the city.
Across all city fund categories — including the General Fund, Special Revenue, Enterprise and Internal Service funds — Carlsbad projects $451.3 million in total revenue, nearly matching last year’s estimate.
“We’re pretty much on target, we’re doing a pretty great job of estimating where we are and where we’re going,” Acosta said.
The city estimates the General Fund will generate $249.6 million in revenue next fiscal year.
Korach said the city continues to closely monitor several economic trends, including inflation and declining consumer confidence.
Another concern involves potential decreases in sales tax revenue tied to geopolitical uncertainty.
“Any potential adverse impacts that may be experienced across various industry sectors that comprise sales tax may be offset by a positive uptick in fuel and service stations as oil prices continue to surge,” Korach said.
Property taxes are expected to account for $104.7 million in General Fund revenue, according to city documents.
Korach said median home prices stabilizing around $1.3 million have helped property taxes remain “the largest and one of the most stable revenue sources in the general fund.”
Mayor Pro Tem Priya Bhat-Patel thanked city staff for maintaining what she described as a culture of fiscal discipline.
“We’re clearly in a strong financial position and that’s due to the work you all have put in,” Bhat-Patel said.
Mayor Keith Blackburn also credited previous city leaders and administrators for helping establish the city’s current financial standing.
“Grandma and grandpa worked really hard to put together a great inheritance for us,” Blackburn said. “And now it’s our job to make sure that we protect what we inherited.”
