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Election Q&A with Carlsbad City Council, city treasurer candidates

The Coast News asked candidates running for city treasurer and the District 2 and District 4 seats on the Carlsbad City Council to respond to questions about local issues before the November election.

In District 4, covering the southern portion of South Beach, Aviara, La Costa Oaks, La Costa Ridge, Rancho La Costa and Carlsbad’s southern boundary with Encinitas, voters will choose between incumbent Councilmember Teresa Acosta, a businesswoman and former professor, and Greg Day, an airline pilot and Marine combat veteran.

In District 2, the city’s largest district by land area, business owner and fire captain Kevin Shin faces off against Tyler Collins, a businessman and chair of the Carlsbad Housing Commission. Since appointee Councilmember Carolyn Luna can’t run, this year’s election guarantees either Shin or Collins, both political newcomers, to the District 2 seat.

Additionally, four candidates have qualified to fill the partial term of city treasurer: Gregorio Kahn, Michael Williams, Christian Peacox, and Thomas Krouse Jr. The elected candidate will complete the remaining four-year term that began in November 2022, when City Treasurer Craig Lindholm was last re-elected. Lindholm announced his retirement earlier this year.

Kahn is the only treasurer candidate who did not respond to The Coast News’ questionnaire.

District 4

What would you say are the top issues facing your district?

Acosta: 1. Safety: I added five police officers, rebuilt Fire Station 2, authorized Fire Station 7, established the EMT program, and lowered 911 response times. I enhanced Traffic Safety programs in education, engineering and enforcement. 2. Sustainability: I launched the Clean Energy Alliance, achieving 50%-plus renewable energy at competitive costs to SDG&E, passed the Skip the Stuff Ordinance, and transitioned away from plastic bags and bottles. I collaborate with state officials on the preservation of our beaches and lagoons and authorize new parks and South Carlsbad’s first public Community Garden. 3. Affordability: I weigh policy impacts on working families and fixed-income seniors and have kept fees low while investing in affordable housing and homelessness prevention, leveraging partnerships and grants.

While I am excited about all we have accomplished, there is more to do.

Day: 1. Homelessness: We must change how we address the homeless population suffering from addiction and severe mental illness. Addressing homelessness simply as an affordability issue is why California is failing on homelessness and why we have seen an 86% increase here in Carlsbad. 2. Public Safety: Crime is rising in Carlsbad as groups are hitting neighborhoods and businesses with break-ins and auto theft.  Organized crime only grows unless serious efforts are made to stop it. We need to prioritize our police department by supporting Prop. 36 and making sure they have all the support, equipment, and manpower necessary to keep our city safe. 3. Economic future: Believe it or not, inflation is the number one factor driving us towards future debt. We must ensure our city is operating efficiently and responsibly by not funding vacant positions, being responsible for city development, and removing positions where grant funding is no longer available.

How do you believe the city should balance state-mandated housing requirements while still maintaining local control? Does the Regional Housing Needs Allocation process need to be reformed, and if so, what does that look like?

Acosta: Cities are currently struggling statewide for local control over local land use matters, and our city is complying with state law while vigorously advocating for local control and housing/RHNA reform.

I am a leader in Carlsbad’s fight for local land use control, both on the Legislative Subcommittee of the City Council, and at the League of California Cities, the non-profit association of all California’s cities, whose mission is to “expand and protect local control for cities through education and advocacy to enhance the quality of life for all Californians.“

Carlsbad has complied with state laws, saving millions in legal fees, while we advocate to preserve our right to manage our own future growth. We join the vast majority of cities that are asking for both RHNA reform and funding from the state so we can focus on consensus solutions to address housing affordability.

Day: RHNA must be reformed. The state’s mandates are not creating more affordable housing; they are actually just building more expensive homes and interfering with the housing market. Carlsbad has a plan designed to accommodate growth while at the same time managing its citizens’ concerns regarding housing density, traffic, and maintaining open space. Sacramento has all but destroyed our ability to manage our growth, so something needs to change.

I will use Carlsbad’s voice and influence and form a coalition in North County demanding change. I will also bring in our assembly and state representatives and show them that it’s in their best interests to start listening to the majority of citizens who are not happy with these mandates and that Sacramento has to stop interfering with development at the local level. We really can get them to listen if we show we are dedicated to this change.

What actions would you propose to improve the city’s response to the local homelessness crisis? 

Acosta: I am committed to reducing homelessness and its effects on the community. Recognizing there is no quick fix for homelessness, in 2021, I approved our city’s Homelessness Action Plan to organize our activities in 3 areas: shelter and housing, outreach and access to services, and public safety. We have successfully transitioned 142 people into permanent housing and prevented homelessness for dozens of others. We collaborate with other government agencies and regional partners on reducing homelessness in the long term, and we immediately respond on the ground with our HOT team officers and contracted social workers.

Carlsbad was one of the first cities in the region to ban unlawful camping. Last month, after the Grants Pass decision, I directed staff to bring back options to strengthen our ordinance and include a prohibition on sleeping in cars. We continue to adapt our approach to changing circumstances, funding, and court decisions.

Day: Stop funding Housing First initiatives. These don’t work because they do not address the main reasons why someone is chronically homeless, which are primarily drugs and mental illness.

We must shift our efforts towards groups that hold people accountable and actually have measurable success. Groups like Solutions for Change and San Diego Rescue Mission set high barriers and have over 76% success rates.

We also need to enforce our ordinances that ban camping in public spaces. This will allow for a mechanism of engagement with the chronically homeless. Waiting for those who are suffering from addiction and mental illness to get help does not work, especially when their lifestyle is being facilitated by our current policies.  We need to get back to a carrot-and-stick approach where people are either seeking the assistance they require or accepting a legal consequence for not doing so.

What are some of the lessons learned from Windsor Point? Do you believe the city should play a more active role in connecting homeless individuals and displaced residents to housing resources?

Acosta: Windsor Pointe is a 50-unit affordable housing project approved in 2017 as supportive housing for veterans. When its developer, Affirmed Housing, could not secure funding for veterans, it applied to other sources and, in 2019, was awarded county funding through the No Place Like Home (NPLH) program, which funds housing for seriously mentally ill people experiencing homelessness.

Since opening in 2022, the project has generated a high volume of 911 calls and is a source of complaints and frustration from neighbors. I also have concerns and am working regularly with our staff to improve the situation. The city is limited in what it can do at this point because the property is tied to a 55-year NPLH funding agreement, and the tenants are protected from discrimination under federal and state housing laws.

One lesson is to be careful about a 55-year deal. The city has an active plan at https://issuu.com/carlsbadcity/docs/homelessness_action_plan

Day: The first lesson learned from Windsor Pointe is that we should never again allow facilities funded by Housing First principles to be in the City of Carlsbad. There really cannot be any exception to this. Housing First money has proven to be a failure, and we cannot afford to accept it.

The second lesson is that the city should always have a mechanism for terminating leases on city-owned land. It is shocking that our city staff allowed a contract to be approved with no protections or recourses in place. The developer and property managers have repeatedly violated the contracts, and thus, the lease should be terminated.

How would you ensure fiscal responsibility as a council member, and what are some ways that the city can raise revenues?

Acosta: I have a strong track record of fiscal discipline as a business owner and as your Councilwoman. I pass a balanced budget at the city every year, and we have cut costs, sought grant funding, and become more efficient, so we have not had to raise additional revenues. We no longer have a structural deficit in our five-year forecast, we manage revenues and expenses carefully, and we maintain more than 40 percent of our budget in reserve.

I understand the importance of supporting our local economy so we can all thrive together. Carlsbad has a strong and diverse local economy, with a combination of small businesses and industry leaders, low unemployment, and the second highest Gross Regional Product in the region. Revenues are up, and we continue to have a healthy budget and a positive economic outlook.

Day: First, our city must address spending. We can reduce personnel spending by no longer funding vacant positions, expanding contracted positions, and ensuring that positions created by grant funding are removed when that funding is no longer available.

We also need to prioritize the city’s services. This will allow us to reduce spending in certain areas or possibly cut those programs if the economic situation calls for it.

The city’s main revenue streams are property, sales, and hotel taxes. With sand on our beaches, robust infrastructure, and safe streets and neighborhoods, those streams will remain strong because Carlsbad will continue to be a desirable place to live, do business, and visit.

We live in one of the most tax-burdened areas in the country. Adding to that burden is unnecessary and irresponsible, and for me, it is not an option.

On the topic of revenues, would you support allowing recreational cannabis dispensaries in Carlsbad and establishing an associated cannabis sales tax to increase city revenues? Why or why not? 

Acosta: I am carefully listening to the Carlsbad community on this issue, and so far, there does not seem to be support for cannabis dispensaries in Carlsbad. I will remain accessible and available to hear public input and see what proposals are brought forth before making any decisions.

Day: I understand there is money to be made when it comes to cannabis taxes. However, I am not supportive of dispensaries in Carlsbad. There are still many unique issues in the cannabis industry that lead to increases in crime. For example, dispensaries have banking issues where they end up having to have extremely large amounts of cash on site. This has proven to be an attractor of criminal activity. Additionally, cities that have allowed dispensaries to open have complaints from surrounding establishments that the dispensary patrons tend to loiter, and thus discourage clientele from neighboring businesses.

There may be a future when a cannabis dispensary is no different than a bar. As of now, this is not the case and I don’t think it’s wise for Carlsbad to participate in the experiment that is taking place right now.

District 2

Can the state-mandated housing requirements be balanced while maintaining local control? Does the RHNA process need to be reformed? If so, how?

Collins: Balancing state-mandated housing requirements with maintaining local control is a challenge. For decades, Carlsbad had a community-approved Growth Management Plan, and this served as a guide for preserving our history and single-family neighborhoods while still facilitating economic growth. Carlsbad is a unique community with its own character and needs, and it’s important that we protect those while still complying with mandates like RHNA (Regional Housing Needs Assessment).

I believe that local input should inform where and how new housing is developed, ensuring that growth aligns with our infrastructure, environmental goals, and community values. The RHNA process needs reform, and a one-size-fits-all approach doesn’t work for every city. I would advocate for a more flexible process that considers each community’s unique characteristics, existing development, and growth potential.

This could include incentives for smart growth and better alignment with local planning initiatives, ensuring that housing targets are realistic and achievable without compromising local identity. At the end of the day, it’s my mission to “Keep Carlsbad, Carlsbad”, and I will advocate for our city’s right to local control.

Shin: There will always be state mandates, but we should be looking for every possible way to assert our local control and authority within those mandates to help preserve the unique character of our neighborhoods and protect the beautiful open space that makes Carlsbad the place we call home.

We can advocate for long-term reform of the RHNA process, including more deference and flexibility for communities that are not looking to become the next San Francisco but that take real collaboration and engagement with our state and federal officials to ensure that they understand and champion the kind of housing policy Carlsbad needs.

Some residents worry that providing more services for homeless individuals will impact their quality of life. What can you do to provide homeless services while also maintaining residents’ quality of life?

Collins: Addressing homelessness is crucial, but it’s equally important to ensure residents’ quality of life is protected. We can strike a balance by focusing on comprehensive solutions that address root causes, like mental health services, job training, and housing while maintaining public safety.

By partnering with local organizations and regional agencies, we can offer targeted support to individuals experiencing homelessness without overburdening our community. We also need to utilize enforcement options when necessary.

Additionally, clear communication with residents about how services are provided and where they are located can help mitigate concerns and create a shared sense of responsibility for addressing this complex issue.

Shin: We must start with the acknowledgment that providing more services for the homeless is not just a Carlsbad problem and that doing nothing about the issues is not going to maintain the quality of life for the people of Carlsbad. Homelessness does not begin or end at our city limits. 

We need to fight for our fair share of regional, state, and federal resources to help provide these services and not all of them need to be provided within the city. 

As a firefighter, I was often on the front lines dealing with the homeless, but we should not fall into the trap of making it just a local public safety issue. We need to seek out regional partnerships, stakeholder collaborations, and other resources and services that address the complex causes of homelessness, including mental health and substance abuse issues.  

How do you ensure fiscal responsibility? What are some ways that cities can raise revenues?

Collins: Fiscal responsibility starts with transparency, careful planning, and prioritizing spending that aligns with community needs. As a city council member, I would advocate for regularly auditing our budget, ensuring taxpayer dollars are spent efficiently, and cutting unnecessary expenditures. By maintaining a healthy reserve fund and avoiding deficit spending, we can prepare for economic uncertainties without compromising essential services.

Cities can raise revenue in several ways without overburdening residents. One approach is to attract new businesses that diversify the local economy and increase our tax base. We can also explore grants and partnerships with regional, state, and federal agencies to fund infrastructure and community projects.

Finally, promoting tourism and local events can boost sales tax revenue, which directly benefits the city without raising taxes on residents.

Shin: Fiscal responsibility begins with making sure we are providing the level of services our community needs within the resources we have available and ensuring we have done everything we can at a city level to provide those services in the most efficient and effective way possible. 

It also means ensuring that our city champions policies that encourage local business development and growth, welcomes visitors and the resources they bring, and provides the infrastructure necessary to support the working people in our community, including more transportation and housing options. 

The kind of long-term, sustained revenue growth necessary to support our community only comes when you allow for that kind of continued economic activity and vibrancy.

What’s a decision the council made in the past term that you supported? What about disagreed with?

Collins: I support the City Council’s decision to consider enforcing the anti-camping ordinance because it helps maintain public safety and cleanliness in our community. While we must provide compassionate solutions for homelessness, clear regulations ensure that public spaces remain accessible and safe for all residents, balancing support with accountability.

I disagreed with some aspects of the city’s approach to housing development. While we need to meet state housing requirements, I believe more attention should be given to smart growth strategies that consider infrastructure, traffic impacts, and community input.

We can balance housing needs with maintaining the character of our neighborhoods through more thoughtful planning and community engagement.

Shin: There are always going to be disagreements about whether a decision was the right or wrong way to go as far as addressing an issue. I believe it is more important how elected officials approach the enormous responsibility of making those decisions on behalf of the people they are elected to serve and what issues they choose to tackle. 

One of the reasons I decided to run for Carlsbad City Council is because I had seen some trivial issues being raised that had nothing to do with Carlsbad and were intended to do nothing more than divide our community. 

As a council member, my focus will be on the community I represent and the issues that impact their quality of life here in Carlsbad. My approach to making decisions will always involve how we can bring the right resources and people together to make the changes we want to see in our community.

CITY TREASURER

Why are you running for city treasurer?

PEACOX: I’m running for City Treasurer because after selling my business 18 months ago, I wanted to give back to my community by contributing to local government. My family and I have lived in Carlsbad since 2011, and my two boys attend public schools here.

I’m excited to apply my education and financial experience to safeguard our city’s resources, ensure liquidity for daily operations, and make strategic investments. With a background in corporate finance and entrepreneurship, I’m uniquely qualified for the role.

My goal is to ensure Carlsbad’s finances are responsibly managed, allowing us to invest in essential services without new taxes. I’m committed to maintaining the high quality of life we all enjoy here.

WILLIAMS: I am the only candidate with fixed-income management experience for a California city. I am retiring at the end of this year and am able to focus full-time on managing Carlsbad’s $900 million investment portfolio.

KROUSE: In most other cities, the “treasurer” is a “CFO,” responsible for preparing a budget and managing expenses with no direct investment duties. Carlsbad’s treasurer role is the complete opposite: 100% investment management and zero policy, budget or operational authority.

I’m running for this critically important but poorly understood position, whose only duty is to directly manage the investment of Carlsbad’s $900 million reserve fund because the fund has been mismanaged and suffered more than $42 million in mark-to-market losses over just 2 years (2022 and 2023).

I am the only candidate with any professional investment management experience with over 25 years in the industry, so I am truly the only candidate professionally qualified to restore prudent investment management of the reserve fund, which is essential to maintaining Carlsbad’s fiscal health as we struggle to address over $50 million in unfunded pension liabilities in addition to our community’s infrastructure needs.

How do you ensure fiscal responsibility as city treasurer? 

PEACOX: As city treasurer, I will ensure fiscal responsibility by working closely with elected officials and city stakeholders to live within our means. Accurate forecasting of revenues and expenses will help address any shortfalls or overages before they impact services. I support a balanced budget approach and will seek innovative ways to save money while promoting growth in city revenue through small business development and tourism.

A key part of fiscal responsibility is transparency — I will ensure that our financial practices, investments and budget decisions are open and accessible to the public, allowing residents to see exactly how their money is being managed. By prioritizing internal efficiencies and smart investments, we can protect our financial health and continue to fund essential services while planning for future projects that all citizens can enjoy.

WILLIAMS: The treasurer’s sole responsibility is managing the investment portfolio. The City Council is responsible for budgeting and expenditures.

KROUSE: To restore fiscal responsibility to Carlsbad, the recent failures in the performance and transparency of the Treasurer’s office must be immediately corrected. A prudent and effective Carlsbad treasurer must maintain a continuous and acute understanding of the capital market and global macroeconomic forces that drive changes in interest rates and other factors that impact the investment returns on the securities that they purchase for the city reserve fund(s).

This professional expertise and daily time commitment are the key elements in ensuring fiscal responsibility as city treasurer. I already have this expertise and invest my time daily in global capital market analysis in the course of my ongoing career. The lack of transparency about the treasurer’s office and the Carlsbad Investment Review Committee is evident by the fact that most people reading this are just discovering that Carlsbad recently incurred over $42 million in losses in the city reserve fund.

What qualifications do you have that make you a good fit for this position? 

PEACOX: I graduated magna cum laude from the University of Southern California with a degree in business and an emphasis in international finance. I spent 10 years in corporate finance, managing multi-million-dollar budgets and investments, before becoming an entrepreneur and successfully starting and selling multiple businesses over the past 20 years.

My financial management experience includes budgeting, strategic planning and ensuring long-term financial sustainability. This real-world experience equips me with a practical, results-driven approach to the Treasurer role, enabling me to work effectively with city departments to ensure our finances are prepared to meet both current operational needs and future investment opportunities.

WILLIAMS: I am the only candidate with 18 years prior city treasurer experience. I was one of two city treasurers in the nation that was requested to testify before the House of Representatives in 1992, regarding investment advisor industry reform due to my performance managing the city’s investments.

The other treasurer was from Minneapolis. I have a Bachelor of Science in business administration and have been a CPA for 42 years, including forensic accountant investigation of fraud and embezzlement. I am currently employed in private industry as an SEC-registered municipal advisor, which I have done since 1990.

KROUSE: My qualifications and experience for this position far exceed those of the three other candidates. I have a bachelor’s degree in (quantitative) economics from Stanford University and an MBA from USC. In 1997, I was awarded the Chartered Financial Analyst designation, the premier global professional credential for institutional investment management and securities analysis. Most mutual fund managers in the USA have the CFA credential. 

I am the only candidate to have any experience as a professional investment portfolio manager, and I’ve been an SEC registered investment adviser, the CEO of two SEC RIA firms, and the chief operating officer at hedge funds with as much as $1.2 billion in invested portfolio assets. I have 27-plus years of professional experience in investment management in addition to 8-plus years in financial technology, executive management, accounting and education. My LinkedIn profile, ThomasKrouseCFA, contains details of my additional certifications, licenses and FINRA registration.

Samantha Nelson, Walker Armstrong and Jordan P. Ingram contributed to this report. 

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