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Home My WebLink About2025-09-23; City Council; 10; General Fund Surplus: Approval of Fiscal Year 2024-25 Budget Carryforward Requests and Appropriation of Unspent Funds to Budget for Fiscal Year 2025-26CA Review AZ Meeting Date: Sept. 23, 2025 To: Mayor and City Council From: Geoff Patnoe, City Manager Staff Contact: Zach Korach, Finance Director zach.korach@carlsbadca.gov or 442-339-2127 Subject: General Fund Surplus: Approval of Fiscal Year 2024-25 Budget Carryforward Requests and Appropriation of Unspent Funds to Budget for Fiscal Year 2025-26 Districts: All Recommended Actions 1)Adopt a resolution approving the fiscal year 2024-25 budget carryforward requests and appropriation of funds to fiscal year 2025-26 and authorizing capital outlay purchases; and 2)Adopt a resolution approving the restriction of General Fund reserves in fiscal year 2025-26 to fund the $7,500,000 contribution to the city’s Section 115 pension trust; and 3)Adopt a resolution approving the use of the fiscal year 2024-25 General Fund surplus for appropriation and transfer to the city’s Solid Waste Enterprise Fund in fiscal year 2025-26. Executive Summary The City of Carlsbad, like other governments, usually has surplus funds at the end of each fiscal year as a result of the city’s actual revenue exceeding what it actually spent, plus any unspent and unencumbered funds that had been budgeted to have been spent in that fiscal year. These unspent funds can be moved into the budget for the following fiscal year in what is referred to as a budget carryforward of funds. The city’s General Fund Surplus Policy was established by City Council Policy No. 87. In accordance with that policy, staff are presenting the list of budget carryforward requests and appropriation of funds to the fiscal year 2025-26 budget for City Council consideration and approval. The requests are detailed below. Staff are also reporting that the city is in conformance with City Council Policy 74 on the General Fund Reserve and with City Council Policy 86 on pension funding. This item is before the City Council because City Council policies require reporting the status of the reserve levels relative to the policy to the City Council, and because the City Council’s approval is required for individual carryforward requests greater than $100,000. Sept. 23, 2025 Item #10 Page 1 of 19 Docusign Envelope ID: 6ED48E2E-9036-4123-9E8D-28B0BEE7EC54 Explanation & Analysis Items approved by prior City Council action The City Council has already approved carrying forward the budget for various items from fiscal year 2024-25 to 2025-26. A list of unspent grant funding and developer deposits previously approved by the City Council through the fiscal year 2025-26 operating budget resolution (Resolution No. 2025-136, adopted on June 17, 2025) is included as Exhibit 4. These items include: •Grant funding approved but not yet completely expended by the end of the fiscal year for various programs and services, including: o $60,794 in unspent grant funding in the General Fund o $2,709,976 in total unspent grant funding in all other funds •Unspent developer deposits received for developer-funded studies and plan check services that were not expended by fiscal year-end. These total $62,602 in the General Fund. Council Policy No. 87 – General Fund Surplus Policy This policy established the process of using surplus funds after a fiscal year has ended. The policy dictates that the city will take the four action steps listed below to comply with Council Policy No. 87. Each step is followed by staff’s updates and recommendations. Step 1 - The city will use surplus funds to replenish any General Fund reserve deficiencies, up to 40%, as set forth in the City Council General Fund Reserve Policy No. 74. Assuming all carry forward requests and proposed uses of General Fund reserve are approved, the city’s General Fund reserve is projected to end the fiscal year at approximately $146.9 million, or 61% of the FY 2025-26 budget, excluding $9.6 million set aside for economic uncertainty. Step 2 - The city will use surplus funds to replenish any pension liability deficiencies to achieve a pension-funded ratio of no less than a minimum of 80% funded, with a target funded ratio range of 80% to 85%. The unfunded liability is the difference between pension assets and liabilities, while the funded ratio or status is the ratio of pension assets to liabilities. In 2019, the City Council adopted a Pension Funding Policy, City Council Policy 86. This policy states that the city will strive to maintain an 80% funded status. Said another way, the goal of this policy is to keep Carlsbad’s pension debt at no more than 20% of its total liabilities. Since fiscal year 2016-17, the city has contributed $56.4 million to CalPERS, the state’s retirement fund for government workers, to reduce the city’s unfunded liability and thereby achieve interest savings. These contributions were in addition to the annual required contributions set by CalPERS. The City Council approved the establishment of a Section 115 pension trust and a pension investment policy on Sept. 12, 2023, to govern the management of assets within the trust. Such a trust, established under Section 115 of the Internal Revenue Code, holds assets specifically for pension benefits, providing a dedicated and irrevocable source of funding that cannot be used for other purposes. This allows the city to stabilize pension cost volatility, maintain local control over the city’s assets and earn a potentially higher rate of return than Sept. 23, 2025 Item #10 Page 2 of 19 Docusign Envelope ID: 6ED48E2E-9036-4123-9E8D-28B0BEE7EC54 if the assets were kept within the General Fund. The City Council approved an initial contribution of $10 million on Sept. 26, 2023, and a subsequent $7.5 million contribution on October 8, 2024. The trust has earned approximately $2.9 million, or 16.5% of what has been contributed, since its establishment. City Council Policy 86 states that “in the event the city is unable to meet the minimum combined pension funded ratio of 80% with current resources (i.e., without borrowing or using reserves), the Finance Director or Deputy City Manager of Administrative Services will identify a reasonable period to return to a minimum 80% funded ratio status.” Rather than making a significant one-time payment to CalPERS, the city will contribute the difference between the 74.6% funded status as of June 30, 2022, and the 80% target to the pension trust over a five-year period. The city made an initial contribution of $10.0 million in 2023 and an additional $7.5 million contribution in 2024 and is expected to make three additional annual contributions of $7.5 million with General Fund dollars. Over the five-year period and beyond, assets in the trust would be invested with a “balanced” investment strategy in accordance with the city’s Pension Trust Investment Policy, City Council Policy 98. Staff project that at the end of fiscal year 2027-28, assets in the trust will meet the 80% funded status target, assuming CalPERS meets its annual target rate of return (any deposits or withdrawals from the trust require approval from the City Council). The city’s funded status changes every year based on CalPERS’ investment performance. In the event the city’s combined funded status meets or exceeds the 80% target level, it is important that the pension trust continues to serve the city as a pension rate stabilization tool. The asset balance in the trust is evaluated to ensure it is on track to accumulate sufficient funds to cover the additional costs associated with a potential future reduction in CalPERS’ discount rate, the fund's expected rate of return. While the trust helps ensure the city maintains an 80% combined funded ratio, the ultimate funding goal would be for the city to have sufficient assets in the trust to be prepared for further discount rate reductions by CalPERS. With the initial contribution of $10 million, subsequent $7.5 million contribution, and the remaining three planned annual contributions of $7.5 million, and assuming an annual rate of return of 6.25%, not only would the city’s funded status reach 80% over a five-year period, but over a 20-year period there would be sufficient assets in the trust to fund a potential reduction in CalPERS’ discount rate from the current 6.8% to 6.25%. At the time pension trust was established, the potential reduction in CalPERS’ discount rate represented an additional $118 million in unfunded pension costs for the City of Carlsbad. Staff recommend the City Council approve the restriction of General Fund reserves in fiscal year 2025-26 to fund the second contribution of $7.5 million to the pension trust. The accounting for this $7.5 million contribution does not require the City Council to approve a budget appropriation or transfer of General Funds. Instead, if the City Council approves the contribution, this money will be marked as restricted and reported that way in the city’s financial statements. The resolution approving the restriction of the $7.5 million contribution to the pension trust is attached as Exhibit 2. Sept. 23, 2025 Item #10 Page 3 of 19 Docusign Envelope ID: 6ED48E2E-9036-4123-9E8D-28B0BEE7EC54 Step 3 - The City Manager is authorized to approve the carrying forward of any unspent and unencumbered budget for a particular item equal to or less than $100,000 into the following fiscal year. These items will be one-time expenditures and not for ongoing services, programs or personnel. The Finance Department asked the city’s departments to submit budget carryforward requests for one-time expenses and not for ongoing services, programs or personnel in July 2025. The requests were reviewed by the City Manager. The City Manager approved $624,326 in General Fund carryforward requests and $812,491 in carryforward requests for other non-General Fund funds. All individual items are less than $100,000. A listing of all City Manager-approved requests is included as Exhibit 5. Step 4 - Items equal to or greater than $100,000 will be brought forward for City Council consideration to approve the use of any remaining surplus funds. The City Manager completed a preliminary review of department-submitted budget carryforward requests greater than $100,000 for submission to the City Council. The requested items of over $100,000 requiring City Council approval are listed and described in the following section. The General Fund carryforward requests total $6,053,026 and the non- General Fund requests total $6,220,719. The lists of these requests are included as Attachment A to Exhibit 1. General Fund requests for City Council approval • Carlsbad Village Trenching - $5,220,000 The Carlsbad Strategic Plan includes a strategic objective to work with the San Diego Association of Governments (SANDAG) and the North County Transit District (NCTD) to prioritize, determine costs and work with state and federal representatives to seek funding for preliminary design and technical studies for lowering the railroad tracks in the Village. The fiscal year 2023-24 budget appropriated $5.22 million from the General Fund Reserve and directed staff to request that SANDAG submit a fiscal year 2023 Railroad Crossing Elimination Grant Program application for the project as the lead agency. The City Council adopted a resolution on June 25, 2024, authorizing the City Manager to execute a memorandum of understanding between the city, SANDAG and NCTD regarding the pursuit of grant funding for the project. Federal and state grant opportunities continue to be explored. This request carries forward the original $5.22 million budgeted to this project. Sept. 23, 2025 Item #10 Page 4 of 19 Docusign Envelope ID: 6ED48E2E-9036-4123-9E8D-28B0BEE7EC54 • Safer streets - $353,571 The City Council appropriated $2 million in August 2022 to support the city’s coordinated efforts to increase attention and resources on a range of solutions to traffic safety under the local emergency it had declared, including infrastructure, safety, enforcement and safe driving and riding education. Budget from this appropriation has been distributed to departments, as needed, to support the project. City staff anticipate this being the final year the city will be carrying forward the remaining available budget to finish projects related to the prior local emergency.1 • Encampment abatement activities - $328,089 Over the last three years, Housing & Homeless Services staff have brought in over $10.6 million in grant funds to move individuals from homeless encampments into shelter or housing. However, these grant funds were not eligible for encampment abatement activities. Housing & Homeless Services staff met with departments including Police, Public Works, Parks & Recreation, Library & Cultural Arts and others to identify one-time capital needs not eligible for grant funding to ensure encampment areas are clean and are not repopulated. This amount is based on the remaining General Fund budget within the department. • Outfitting for three police patrol vehicles - $151,366 The City Council authorized the addition of six full-time employees and approved $690,400 in additional appropriations on March 25, 2025. (Resolution No. 2025-078) These appropriations covered vehicles, safety equipment, training, office supplies and software. The budget to purchase three patrol vehicles has been encumbered, that is, set aside for the purchase; however, since the city is still awaiting delivery, funds for outfitting the vehicles have not yet been encumbered. The remaining balance requested is to complete the outfitting of these vehicles. Non-General Fund requests for City Council approval • Complete FY 2024-25 approved vehicle purchases - $4,832,980 Due to supply chain issues vehicle and equipment availability, the city was unable to purchase some vehicles that had been slated for replacement in FY 2024-25 before the end of the fiscal year. This request carries forward budget to replace the remaining vehicles as originally planned in the fiscal year 2024-25 budget, including a portion of new appropriations relating to vehicle purchase price adjustments already included in the fund’s chargeback revenue collections, the funds city departments are charged for certain services and items. 1 The City of Carlsbad declared a local state of emergency on Aug. 23, 2023, in response to increase in collisions involving bikes and e-bikes. The City Council ended that state of emergency on Sept. 8, 2023. Sept. 23, 2025 Item #10 Page 5 of 19 Docusign Envelope ID: 6ED48E2E-9036-4123-9E8D-28B0BEE7EC54 • Affordable Housing Trust ongoing property acquisition - $391,860 The City Council approved the purchase and resale of an at-risk affordable housing unit at Colt Place on Sept. 24, 2024 (Resolution No. 2024-216). There have been delays with the seller in completing the purchase of the property, so the appropriation needs to continue to be carried forward until the purchase can be completed. • Complete FY 2024-25 approved Information Technology replacements - $845,879 This request carries forward funds to complete the remaining replacements planned in the fiscal year 2024-25 budget. The funds are needed to ensure all city hardware is replaced on a timely basis. Items to be purchased include computers, switches, servers, routers, firewalls and miscellaneous infrastructure. No item costs over $100,000. • City website Americans with Disability Act compliance services - $150,000 California Assembly Bill 434 requires that any web services provided by a municipality meet specified web content accessibility guidelines. In addition to the city’s website, the city works with over 90 vendors that provide online web content. This includes online databases provided by the library, online payment portals and civic engagement tools. To ensure city services are fully accessible to our residents and customers and to reduce the risk of litigation associated with accessibility challenges, staff are requesting $150,000 to contract with a consultant that specializes in ADA compliance. The city will work with this consulting firm to audit the city’s website and provide a comprehensive report on accessibility issues, plan for any necessary remediation and reaudit the website once remediation has been completed, audit the web content of the city’s contracted web services to validate compliance, and develop and provide training to city staff to ensure content on the city’s website remains compliant. Transfer items The city’s Solid Waste Enterprise Fund includes a Storm Water Management Program. This program is responsible for the maintenance and upkeep of the storm water system throughout the city. The fiscal year 2025-26 adopted budget includes revenues of $3.6 million and expenses of $5.1 million. Excluding a General Fund transfer of $2 million, the program runs an annual deficit of approximately $3.5 million, which is expected to increase on an annual basis. Staff recommend a one-time use of General Fund surplus to transfer $6 million to ensure sufficient funding and continuity of the program into the near future. Sept. 23, 2025 Item #10 Page 6 of 19 Docusign Envelope ID: 6ED48E2E-9036-4123-9E8D-28B0BEE7EC54 Fiscal Analysis Council Policy No. 87 defines “surplus” as actual revenues less actual expenditures, plus any unspent and unencumbered expenditure budget. The table below calculates the surplus available for the City Council’s consideration in accordance with the policy. All figures presented below are unaudited. Summary of General Fund surplus at 2024-25 fiscal year-end FY 2024-25 revenues $245,314,552 FY 2024-25 expenditures* 233,625,343 FY 2024-25 surplus $11,689,209 Unspent and unencumbered budget 13,990,497 Carryforward authority (surplus + unspent budget) $25,679,706 *Excludes encumbrances The table below presents the effect on the budget surplus if the City Council were to approve all presented carryforward requests and additional staff-recommended options. Summary of staff-recommended General Fund budget actions Carryforward authority (surplus + unspent budget) $25,679,706 Previously approved grants/developer deposits 123,396 Third pension trust contribution* 7,500,000 City Manager-approved carryforward requests below $100,000 624,326 City Council-approved carryforward requests above $100,000 Transfer to Storm Water Protection Program 6,053,026 6,000,000 Total spending $20,300,748 Remaining authority $5,378,958 *Does not require appropriation The following table presents a summary of the General Fund at 2024-25 fiscal year-end after considering approval of the items presented above and the new General Fund reserve in comparison to policy. Effect of carryforward budget decision on the General Fund reserve Reserve balance Reserve percent* Initial unassigned fund balance as of 2024-25 FYE $167,236,221 69% Proposed use of surplus -20,300,748 -8% Updated estimated unassigned fund balance $146,935,658 61% 40% minimum reserve policy $96,959,931 40% Funds in excess of reserve requirement $49,975,727 21% *Calculated as a percentage of the FY 2025-26 adopted budget of $242,399,827 Sept. 23, 2025 Item #10 Page 7 of 19 Docusign Envelope ID: 6ED48E2E-9036-4123-9E8D-28B0BEE7EC54 Contributions to pension trust As of CalPERS’ actuarial reports dated June 30, 2024 (released in August 2025), the city’s current pension-funded ratio is 75.7%, representing a shortfall of approximately $41.2 million from the 80% policy target. As of July 31, 2025, the city’s pension trust had $20.3 million, which included a $10.0 million initial contribution, $7.5 million subsequent contribution and $2.9 million of net investment earnings. Based on CalPERS’ most current actuarial valuations and the pension trust’s assets as of July 31, 2025, the city’s combined funded status is 77.9%. Rather than immediately contributing the difference to CalPERS, the city will contribute $40 million to the pension trust over a five-year period, beginning in fiscal year 2023-24, with an annual target rate of return of 6.25%. Contributions to the trust will move the funds from “unassigned” fund balance to “restricted” fund balance in the General Fund. These funds will be available to be counted toward the city’s funded ratio as set forth in City Council Policy 86, as amended, and mitigate budgetary pressures resulting from potential volatility in CalPERS’ required contributions made by the city. If this request is approved, the city will contribute $7.5 million from the General Fund to the pension trust, and the remaining funds over the following two years. The City Council will have the opportunity to review and approve each transfer in the coming years. Options Options for surplus budget and the General Fund reserve Staff are presenting several options to deploy budget surplus from FY 2024-25 for the City Council’s consideration: Option 1: Adopt a resolution approving a General Fund contribution of $7.5 million to the Section 115 pension trust as specified in Exhibit 2. Pro • Over a five-year period, beginning in fiscal year 2023-24, the city will contribute assets to the pension trust to reach a combined 80% funded status. • Assets in the pension trust are likely to appreciate at a higher rate than the city’s general investment portfolio and must be used for pension-related costs, mitigating pension rate volatility due to periods of CalPERS’ poor investment performance or changes to their assumptions. Con • Funds that would have otherwise been contributed to the trust could be used for other purposes. Sept. 23, 2025 Item #10 Page 8 of 19 Docusign Envelope ID: 6ED48E2E-9036-4123-9E8D-28B0BEE7EC54 Option 2: Approve all or a combination of the individual carryforward requests equal to or greater than $100,000 presented above and listed in Attachment A to Exhibit 1. Staff will appropriate the approved carryforward requests to FY 2025-26. Pro • Provides the resources needed to execute the programs as detailed in Attachment A to Exhibit 1. Con • The funds used would not be available for other programs the City Council may wish to fund. Option 3: Take no action on the carryforward requests or use of General Fund reserve brought forward for City Council approval. Pro • Funds would be returned to the reserve account and be available to support future needs. Con • Departments will be unable to fully implement planned programs and expenditures. If the second contribution toward the city’s five-year funding strategy to reach an 80% funded ratio is not approved, then an immediate $41.2 million contribution to CalPERS may be needed in accordance with City Council Policy No. 86. Staff recommend Options 1 and 2. Next Steps City Council and City Manager-approved carryforward requests will be appropriated to the fiscal year 2025-26 budget in accordance with City Council direction. If the action is approved, the General Fund reserve will be restricted to make the second $7.5 million contribution to the pension trust. The annual fiscal year audit is currently underway for FY 2024-25. City staff will return to the City Council to present the results of the financial audit and the status of the city’s General Fund reserve after the final audit opinion has been issued. Environmental Evaluation The proposed action is not a “project” as defined by California Environmental Quality Act Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The activity or projects for which this budget is intended to fund may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines. Sept. 23, 2025 Item #10 Page 9 of 19 Docusign Envelope ID: 6ED48E2E-9036-4123-9E8D-28B0BEE7EC54 Exhibits 1. City Council resolution – Carryforward approval 2. City Council resolution – Contribution to pension trust 3. City Council resolution – Solid Waste transfer 4. Items approved by previous City Council and/or Board action, including unspent grant and developer balances 5. List of City Manager/Executive Director-approved FY 2024-25 General Fund and non-General Fund carryforward budget requests Sept. 23, 2025 Item #10 Page 10 of 19 Docusign Envelope ID: 6ED48E2E-9036-4123-9E8D-28B0BEE7EC54 Exhibit 1 RESOLUTION NO. 2025-216 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE FISCAL YEAR 2024-25 BUDGET CARRYFORWARD REQUESTS AND APPROPRIATION OF FUNDS TO FISCAL YEAR 2025-26 AND AUTHORIZING CAPITAL OUTLAY PURCHASES WHEREAS, the City Council of the City of Carlsbad, California, established its General Fund Surplus Policy (City Council Policy No. 87) for the appropriation of surplus funds resulting from General Fund actual revenues exceeding total actual expenditures, plus any unspent and unencumbered expenditures budgeted for a given fiscal year; and WHEREAS, at the close of fiscal year 2024-25, the city’s unaudited General Fund reserve balance is 69% and has exceeded its General Fund Reserve Policy (City Council Policy No. 74) target of 40%; and WHEREAS, at the close of fiscal year 2024-25, the remaining unaudited unspent and unencumbered expenditure budget for the General Fund is $14.0 million of which $123,396 has been carried forward because of a previous City Council resolution, resulting in an unspent budget of $13.9 million; and WHEREAS, at the close of fiscal year 2024-25, the General Fund surplus, or actual revenues less actual expenditures, is $11.7 million; and WHEREAS, in accordance with City Council Policy No. 87, the City Manager has approved individual items of less than $100,000 that total $624,326 in General Fund carryforward requests and $812,491 in carryforward requests for other non-General Fund funds; and WHEREAS, City Council Policy No. 87 requires City Council approval for the carryforward of any unspent and unencumbered budget for a particular item equal to or greater than $100,000; and WHEREAS, department carryforward requests submitted for City Council approval that total $6,053,026 in General Fund carryforward requests and $6,220,719 in carryforward requests for other non-General Fund funds are listed in Attachment A to this resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.The proposed action is not a “project” as defined by California Environmental Quality Act Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require Sept. 23, 2025 Item #10 Page 11 of 19 Docusign Envelope ID: 6ED48E2E-9036-4123-9E8D-28B0BEE7EC54 environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The activity or projects for which this budget is intended to fund may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines. 3.That the budget carryforward requests shown in Attachment A to this resolution are approved for carryforward from fiscal year 2024-25 to fiscal year 2025-26. 4.That the City Manager, or designee, is authorized to purchase the capital outlay items as shown in Attachment A. 5.That the City Manager, or designee, is authorized to appropriate carryforward budgets to the funds in the amounts shown in Attachment A. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 23rd day of September, 2025, by the following vote, to wit: AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin. NAYS: None. ABSTAIN: None. ABSENT: None. _____________________________________ KEITH BLACKBURN, Mayor ______________________________________ SHERRY FREISINGER, City Clerk (SEAL) Sept. 23, 2025 Item #10 Page 12 of 19 Docusign Envelope ID: 6ED48E2E-9036-4123-9E8D-28B0BEE7EC54 DE P A R T M E N T FU N D DE S C R I P T I O N RE Q U E S T TY P E AM O U N T No n - d e p a r t m e n t a l Ge n e r a l F u n d Ca r l s b a d V i l l a g e T r e n c h p r o j e c t Ot h e r 5, 2 2 0 , 0 0 0 $ No n - d e p a r t m e n t a l Ge n e r a l F u n d Sa f e r S t r e e t s T o g e t h e r p r o g r a m s u p p o r t Ot h e r 35 3 , 5 7 1 No n - d e p a r t m e n t a l Ge n e r a l F u n d En c a m p m e n t a b a t e m e n t a c t i v i t i e s Ot h e r 32 8 , 0 8 9 Po l i c e Ge n e r a l F u n d Ou t f i t t i n g f o r ( 3 ) P a t r o l P o l i c e V e h i c l e s Ca p i t a l O u t l a y 15 1 , 3 6 6 Fl e e t & F a c i l i t i e s No n G e n e r a l F u n d An n u a l V e h i c l e R e p l a c e m e n t F u n d c a r r y f o r w a r d * Ot h e r 4, 8 3 2 , 9 8 0 Ho u s i n g a n d H o m e l e s s S e r v i c e s No n G e n e r a l F u n d Af f o r d a b l e H o u s i n g T r u s t o n g o i n g p r o p e r t y a c q u i s i t i o n Ot h e r 39 1 , 8 6 0 In f o r m a t i o n T e c h n o l o g y No n G e n e r a l F u n d An n u a l I T R e p l a c e m e n t F u n d C a r r y f o r w a r d Ca p i t a l O u t l a y 84 5 , 8 7 9 In f o r m a t i o n T e c h n o l o g y No n G e n e r a l F u n d Ci t y W e b s i t e A D A C o m p l i a n c e S e r v i c e s Pr o f e s s i o n a l S e r v i c e s 15 0 , 0 0 0 Ge n e r a l F u n d T o t a l 6, 0 5 3 , 0 2 6 $ No n G e n e r a l F u n d T o t a l 6, 2 2 0 , 7 1 9 $ GR A N D T O T A L 12 , 2 7 3 , 7 4 5 $ *I n c l u d e s a p p r o p r i a t i o n s f o r c o s t i n c r e a s e s o f $ 4 3 8 , 6 9 5 f o r v e h i c l e F 5 1 7 , $ 4 3 4 , 9 0 0 f o r v e h i c l e F 5 1 8 , a n d $ 1 0 0 , 0 0 0 f o r S 1 6 7 . CI T Y O F C A R L S B A D F Y 2 0 2 4 - 2 5 T O F Y 2 0 2 5 - 2 6 CA R R Y F O R W A R D B U D G E T R E Q U E S T S F O R C I T Y C O U N C I L C O N S I D E R A T I O N (I T E M S E Q U A L T O O R G R E A T E R T H A N $ 1 0 0 , 0 0 0 ) Attachment A Sept. 23, 2025 Item #10 Page 13 of 19 Docusign Envelope ID: 6ED48E2E-9036-4123-9E8D-28B0BEE7EC54 Exhibit 2 RESOLUTION NO. 2025-217 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE RESTRICTION OF GENERAL FUND RESERVES IN FISCAL YEAR 2025-26 TO FUND THE $7,500,000 CONTRIBUTION TO THE CITY’S SECTION 115 PENSION TRUST WHEREAS, City Council’s General Fund Surplus Policy (City Council Policy No. 87) allows for General Fund reserve levels in excess of the 40% target requirement to be used for one-time opportunity cost purposes at the discretion of the City Council; and WHEREAS, at the close of fiscal year 2024-25, the city’s unaudited General Fund reserve balance is 69% and has exceeded its General Fund Reserve Policy (City Council Policy No. 74) target of 40%; and WHEREAS, at the close of fiscal year 2024-25, the remaining unaudited unspent and unencumbered expenditure budget for the General Fund is $14.0 million of which $123,396 has been carried forward because of a previous City Council resolution, resulting in an unspent budget of $13.9 million; and WHEREAS, at the close of fiscal year 2024-25, the General Fund surplus, or actual revenues less actual expenditures, is $11.7 million; and WHEREAS, City Council Policy No. 87 requires City Council approval for the carryforward of any unspent and unencumbered budget for a particular item equal to or greater than $100,000; and WHEREAS, a Section 115 Pension Trust was established by the City Council on September 12, 2023; and WHEREAS, City Council Policy No. 86 strives to maintain a combined pension-funded status of 80% and allows assets in the city’s Section 115 Pension Trust to count towards the city’s combined pension-funded status; and WHEREAS, as of CalPERS’ June 30, 2024, actuarial valuation report, the city’s combined funded status was 77.9%; and WHEREAS, the city’s Section 115 Pension Trust shall be funded over a period of five fiscal years in order to achieve and maintain an 80% combined pension-funded status. Sept. 23, 2025 Item #10 Page 14 of 19 Docusign Envelope ID: 6ED48E2E-9036-4123-9E8D-28B0BEE7EC54 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.The proposed action is not a “project” as defined by California Environmental Quality Act Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The activity or projects for which this budget is intended to fund may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines. 3.That a contribution to the city’s Section 115 Pension Trust in the amount of $7,500,000 is approved. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 23rd day of September, 2025, by the following vote, to wit: AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin. NAYS: None. ABSTAIN: None. ABSENT: None. _____________________________________ KEITH BLACKBURN, Mayor ______________________________________ SHERRY FREISINGER, City Clerk (SEAL) Sept. 23, 2025 Item #10 Page 15 of 19 Docusign Envelope ID: 6ED48E2E-9036-4123-9E8D-28B0BEE7EC54 Exhibit 3 RESOLUTION NO. 2025-218 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE USE OF THE FISCAL YEAR 2024-25 GENERAL FUND SURPLUS FOR APPROPRIATION AND TRANSFER TO THE CITY’S SOLID WASTE ENTERPRISE FUND IN FISCAL YEAR 2025-26 WHEREAS, City Council’s General Fund Surplus Policy (City Council Policy No. 87) allows for General Fund reserve levels in excess of the 40% target requirement to be used for one-time opportunity cost purposes at the discretion of the City Council; and WHEREAS, at the close of fiscal year 2024-25, the city’s unaudited General Fund reserve balance is 69% and has exceeded its General Fund Reserve Policy (City Council Policy No. 74) target of 40%; and WHEREAS, at the close of fiscal year 2024-25, the remaining unaudited unspent and unencumbered expenditure budget for the General Fund is $14.0 million of which $123,396 has been carried forward because of a previous City Council resolution, resulting in an unspent budget of $13.9 million; and WHEREAS, at the close of fiscal year 2024-25, the General Fund surplus, or actual revenues less actual expenditures, is $11.7 million; and WHEREAS, City Council Policy No. 87 requires City Council approval for the carryforward of any unspent and unencumbered budget for a particular item equal to or greater than $100,000; and WHEREAS, the reserve of the city’s Storm Water Protection Program within the Solid Waste Enterprise Fund will require significant funding on an ongoing basis. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.The proposed action is not a “project” as defined by California Environmental Quality Act Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The activity or projects for which this budget is intended to fund may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines. Sept. 23, 2025 Item #10 Page 16 of 19 Docusign Envelope ID: 6ED48E2E-9036-4123-9E8D-28B0BEE7EC54 3.That a transfer to the city’s Solid Waste Enterprise Fund in the amount of $6.0 million is approved. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 23rd day of September, 2025, by the following vote, to wit: AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin. NAYS: None. ABSTAIN: None. ABSENT: None. _____________________________________ KEITH BLACKBURN, Mayor ______________________________________ SHERRY FREISINGER, City Clerk (SEAL) Sept. 23, 2025 Item #10 Page 17 of 19 Docusign Envelope ID: 6ED48E2E-9036-4123-9E8D-28B0BEE7EC54 DE P A R T M E N T FU N D DE S C R I P T I O N RE Q U E S T TY P E AM O U N T Co m m u n i t y D e v e l o p m e n t Ge n e r a l F u n d Ca r r y f o r w a r d o f d e v e l o p e r f u n d e d r e v e n u e Gr a n t b a l a n c e o r d e v e l o p e r d e p o s i t 62 , 6 0 2 $ Li b r a r y & C u l t u r a l A r t s Ge n e r a l F u n d Ad u l t L i t e r a c y G r a n t f u n d s Gr a n t b a l a n c e o r d e v e l o p e r d e p o s i t 11 , 7 3 1 Li b r a r y & C u l t u r a l A r t s Ge n e r a l F u n d Fa m i l y L i t e r a c y G r a n t f u n d s Gr a n t b a l a n c e o r d e v e l o p e r d e p o s i t 4, 4 2 6 Po l i c e Ge n e r a l F u n d Bo a r d o f S t a t e a n d C o m m u n i t y C o r r e c t i o n s O f f i c e r W e l l n e s s a n d M e n t a l H e a l t h G r a n t Gr a n t b a l a n c e o r d e v e l o p e r d e p o s i t 44 , 6 3 7 En v i r o n m e n t a l S u s t a i n a b i l i t y No n G e n e r a l F u n d Se n a t e B i l l 1 3 8 3 G r a n t f u n d s Gr a n t b a l a n c e o r d e v e l o p e r d e p o s i t 11 9 , 6 8 8 En v i r o n m e n t a l S u s t a i n a b i l i t y No n G e n e r a l F u n d Be v e r a g e C o n t a i n e r G r a n t f u n d s F Y 2 3 - 2 4 Gr a n t b a l a n c e o r d e v e l o p e r d e p o s i t 28 , 2 9 2 En v i r o n m e n t a l S u s t a i n a b i l i t y No n G e n e r a l F u n d Be v e r a g e C o n t a i n e r G r a n t f u n d s F Y 2 4 - 2 5 Gr a n t b a l a n c e o r d e v e l o p e r d e p o s i t 28 , 2 1 3 Fi r e No n G e n e r a l F u n d FY 2 3 U r b a n A r e a S e c u r i t y I n i t i a t i v e G r a n t P r o g r a m f u n d s Gr a n t b a l a n c e o r d e v e l o p e r d e p o s i t 22 , 7 7 5 Fi r e No n G e n e r a l F u n d Re g i o n a l U r b a n S e a r c h a n d R e s c u e T a s k F o r c e 1 3 R e i m b u r s e m e n t P r o g r a m Gr a n t b a l a n c e o r d e v e l o p e r d e p o s i t 12 7 , 0 1 1 Ho u s i n g a n d H o m e l e s s S e r v i c e s No n G e n e r a l F u n d Co m m u n i t y D e v e l o p m e n t B l o c k G r a n t ( C D B G ) f u n d s Gr a n t b a l a n c e o r d e v e l o p e r d e p o s i t 69 4 , 9 3 1 Ho u s i n g a n d H o m e l e s s S e r v i c e s No n G e n e r a l F u n d En c a m p m e n t R e s o l u t i o n P r o g r a m R o u n d 3 F u n d s Gr a n t b a l a n c e o r d e v e l o p e r d e p o s i t 47 6 , 6 4 4 Ho u s i n g a n d H o m e l e s s S e r v i c e s No n G e n e r a l F u n d Lo c a l H o u s i n g A l l o c a t i o n P r o g r a m ( P L H A ) f u n d s Gr a n t b a l a n c e o r d e v e l o p e r d e p o s i t 37 7 , 7 9 4 Ho u s i n g a n d H o m e l e s s S e r v i c e s No n G e n e r a l F u n d En c a m p m e n t R e s o l u t i o n V H O P f u n d s Gr a n t b a l a n c e o r d e v e l o p e r d e p o s i t 37 0 , 3 5 7 Ho u s i n g a n d H o m e l e s s S e r v i c e s No n G e n e r a l F u n d En c a m p m e n t R e s o l u t i o n P r o g r a m R o u n d 2 f u n d s Gr a n t b a l a n c e o r d e v e l o p e r d e p o s i t 34 3 , 8 0 7 Po l i c e No n G e n e r a l F u n d Of f i c e o f T r a f f i c S a f e t y F Y 2 4 G r a n t Gr a n t b a l a n c e o r d e v e l o p e r d e p o s i t 12 0 , 4 6 3 Ge n e r a l F u n d T o t a l 12 3 , 3 9 6 $ No n G e n e r a l F u n d T o t a l 2, 7 0 9 , 9 7 6 $ GR A N D T O T A L 2, 8 3 3 , 3 7 2 $ No t e : G r a n t s b a l a n c e c a r r y f o r w a r d a m o u n t s a r e s u b j e c t t o c h a n g e , p e n d i n g f i n a l y e a r e n d f i n a n c i a l r e c o n c i l i a t i o n s . CI T Y O F C A R L S B A D F Y 2 0 2 4 - 2 5 T O F Y 2 0 2 5 - 2 6 AN D U N S P E N T G R A N T A N D D E V E L O P E R B A L A N C E S CA R R Y F O R W A R D B U D G E T L I S T O F I T E M S A P P R O V E D B Y P R E V I O U S C I T Y C O U N C I L / B O A R D A C T I O N Exhibit 4 Exhibit 4 Sept. 23, 2025 Item #10 Page 18 of 19 Docusign Envelope ID: 6ED48E2E-9036-4123-9E8D-28B0BEE7EC54 DE P A R T M E N T FU N D DE S C R I P T I O N RE Q U E S T TY P E AM O U N T Ci t y A t t o r n e y Ge n e r a l F u n d On e - y e a r s u b s c r i p t i o n f o r d i g i t a l p u b l i c a t i o n s / p r o d u c t s f o r l e g a l r e s e a r c h Pr o f e s s i o n a l S e r v i c e s 16 , 0 0 0 . 0 0 Ci t y C l e r k Ge n e r a l F u n d El e c t i o n E x p e n s e s Ot h e r 20 , 0 0 0 . 0 0 Ci t y C l e r k Ge n e r a l F u n d Ci t y C l e r k O f f i c e R e c o n f i g u r a t i o n Eq u i p m e n t & S u p p l i e s 5, 0 0 0 . 0 0 Fin a n c e Ge n e r a l F u n d Fe e S t u d y e x p a n s i o n f o r c o m p a r i s o n d a t a Pr o f e s s i o n a l S e r v i c e s 30 , 0 0 0 . 0 0 Fir e Ge n e r a l F u n d Co m p l e t e i n p r o g r e s s v e h i c l e o u t f i t t i n g f o r F i r e M a r s h a l v e h i c l e Ca p i t a l O u t l a y 32 , 0 0 0 . 0 0 Fir e Ge n e r a l F u n d Fi r s t D u e f i r e i n s p e c t i o n s o f t w a r e Ot h e r 31 , 0 0 0 . 0 0 Fir e Ge n e r a l F u n d Se l f C o n t a i n e d B r e a t h i n g A p p a r a t u s c l e a n i n g e x t r a c t o r a t F i r e S t a t i o n 5 Ca p i t a l O u t l a y 30 , 0 0 0 . 0 0 Fir e Ge n e r a l F u n d Re p l a c e m e n t o f t h e f i r e e x t i n g u i s h e r t r a i n i n g p r o p a t t h e S a f e t y T r a i n i n g C e n t e r Ca p i t a l O u t l a y 15 , 0 0 0 . 0 0 Fir e Ge n e r a l F u n d Re p l a c e m e n t e m e r g e n c y r e s p o n s e s a w s c a r r i e d o n f r o n t - l i n e a p p a r a t u s Eq u i p m e n t & S u p p l i e s 7, 5 0 0 . 0 0 Fle e t & F a c i l i t i e s Ge n e r a l F u n d Co m p l e t e I r r i g a t i o n S y s t e m U p g r a d e P r o j e c t a t S a f e t y T r a i n i n g C e n t e r Pr o f e s s i o n a l S e r v i c e s 16 , 7 3 6 . 0 0 Ho u s i n g a n d H o m e l e s s S e r v i c e s Ge n e r a l F u n d Im p l e m e n t r e n t a l c o m p l i a n c e s o l u t i o n f o r c i t y ' s a f f o r d a b l e m u l t i f a m i l y p r o p e r t i e s Ot h e r 32 , 0 0 0 . 0 0 Li b r a r y & C u l t u r a l A r t s Ge n e r a l F u n d Pu b l i c A r t M a i n t e n a n c e Pr o f e s s i o n a l S e r v i c e s 80 , 0 0 0 . 0 0 Li b r a r y & C u l t u r a l A r t s Ge n e r a l F u n d Te m p o r a r y P u b l i c A r t Pr o f e s s i o n a l S e r v i c e s 35 , 0 0 0 . 0 0 Po l i c e Ge n e r a l F u n d IC A C V e h i c l e & O u t f i t t i n g Ca p i t a l O u t l a y 69 , 2 7 5 . 0 0 Po l i c e Ge n e r a l F u n d Ou t f i t t i n g f o r D i g i t a l F E S V e h i c l e Ca p i t a l O u t l a y 31 , 1 0 1 . 0 0 Po l i c e Ge n e r a l F u n d Ou t f i t t i n g f o r T r a f f i c / S p e c i a l E v e n t s S e r g e a n t V e h i c l e Ca p i t a l O u t l a y 28 , 1 7 0 . 0 0 Po l i c e Ge n e r a l F u n d SW A T R i f l e M o u n t e d L i g h t s & O p t i c R i s e r s Eq u i p m e n t & S u p p l i e s 18 , 3 9 8 . 0 0 Po l i c e Ge n e r a l F u n d Sa f e t y E q u i p m e n t f o r n e w s w o r n e m p l o y e e s Eq u i p m e n t & S u p p l i e s 18 , 2 4 5 . 0 0 Po l i c e Ge n e r a l F u n d Tr a u m a a n d R e s i l i e n c e R e t r e a t f o r O f f i c e r s Pr o f e s s i o n a l S e r v i c e s 15 , 0 0 0 . 0 0 Po l i c e Ge n e r a l F u n d Po r t a b l e S h i e l d s f o r H o m e l e s s O u t r e a c h T e a m Eq u i p m e n t & S u p p l i e s 3, 9 0 1 . 0 0 Tr a n s p o r t a t i o n Ge n e r a l F u n d In c r e a s e p r o f e s s i o n a l s e r v i c e b u d g e t f o r T r a f f i c E n g i n e e r i n g Pr o f e s s i o n a l S e r v i c e s 90 , 0 0 0 . 0 0 Ho u s i n g a n d H o m e l e s s S e r v i c e s No n G e n e r a l F u n d Af f o r d a b l e H o u s i n g T r u s t o n g o i n g l e g a l c o s t s Ot h e r 52 , 4 9 6 . 0 0 Ho u s i n g a n d H o m e l e s s S e r v i c e s No n G e n e r a l F u n d Af f o r d a b l e H o u s i n g T r u s t f u n d s f o r H o m e l e s s n e s s A c t i o n P l a n s u p p o r t Ot h e r 35 , 7 8 3 . 0 0 Ho u s i n g a n d H o m e l e s s S e r v i c e s No n G e n e r a l F u n d Af f o r d a b l e H o u s i n g T r u s t U r b a n C o r e c o n t r a c t f o r A f f o r d a b l e H o u s i n g R e s a l e P r o g r a m Ot h e r 35 , 7 6 4 . 0 0 Ho u s i n g a n d H o m e l e s s S e r v i c e s No n G e n e r a l F u n d Co m m u n i t y A c t i v i t y G r a n t f u n d s Ot h e r 30 , 0 0 0 . 0 0 Ho u s i n g a n d H o m e l e s s S e r v i c e s No n G e n e r a l F u n d Ag r i c u l t ura l M i t i g a t i o n F e e fu n d s Ot h e r 19 , 9 0 0 . 0 0 Ho u s i n g a n d H o m e l e s s S e r v i c e s No n G e n e r a l F u n d Win n i n g T e a m s G r a n t Ot h e r 3, 5 6 2 . 0 0 IT No n G e n e r a l F u n d Co r e A n n u a l M a i n t e n a n c e f o r t h e t e r m 9 / 1 / 2 4 - 0 8 / 3 1 / 2 5 a n d i m p l e m e n t a t i o n s e r v i c e s Ot h e r 99 , 6 5 0 . 0 0 IT No n G e n e r a l F u n d Ve r s a T e r m - S P I D R P l a t f o r m M a i n t e n a n c e Ot h e r 33 , 0 0 0 . 0 0 Pa r k s & R e c r e a t i o n No n G e n e r a l F u n d Th e C r o s s i n g s G o l f C o u r s e a n n u a l c a p i t a l b u d g e t c a r r y f o r w a r d * Pr o f e s s i o n a l S e r v i c e s 41 7 , 0 0 0 . 0 0 Ut i l i t i e s No n G e n e r a l F u n d CC T V c a m e r a a n d t r a n s p o r t e r f o r s e w e r i n s p e c t i o n Ca p i t a l O u t l a y 85 , 3 3 6 . 0 0 Ge n e r a l F u n d T o t a l 62 4 , 3 2 6 $ No n G e n e r a l F u n d T o t a l 81 2 , 4 9 1 $ GR A N D T O T A L 1, 4 3 6 , 8 1 7 $ *T h i s r e q u e s t i s c o m p r i s e d o f i n d i v i d u a l i t e m s e a c h b e l o w t h e $ 1 0 0 , 0 0 0 t h r e s h o l d f o r C i t y M a n a g e r / E x e c u t i v e D i r e c t o r a p p r o v a l . CI T Y O F C A R L S B A D F Y 2 0 2 4 - 2 5 T O F Y 2 0 2 5 - 2 6 CA R R Y F O R W A R D B U D G E T R E Q U E S T S A P P R O V E D B Y C I T Y M A N A G E R / E X E C U T I V E D I R E C T O R (I T E M S L E S S T H A N $ 1 0 0 , 0 0 0 ) Exhibit 5 Sept. 23, 2025 Item #10 Page 19 of 19 Docusign Envelope ID: 6ED48E2E-9036-4123-9E8D-28B0BEE7EC54 General Fund Surplus : Fiscal Year 2024-25 Review Zach Korach, Finance Director September 23, 2025 2 BUDGET CARRYFORWARDS City Council Policy No. 87 – General Fund Surplus Policy •The city will use surplus funds to replenish: –any General Fund reserve deficiencies, and –any pension liability deficiencies. •The City Manager is authorized to approve the carry forward of unspent budget for an item up to $100,000. •Items equal to or greater than $100,000 will be brought forward for City Council approval. ITEM 10: GENERAL FUND SURPLUS 3 FISCAL YEAR 2024-25 GENERAL FUND SURPLUS Year -end summary:Total FY 2024-25 revenues $245,314,552 FY 2024-25 expenditures 233,625,343 FY 2024-25 surplus $11,689,209 Unspent and unencumbered budget 13,990,497 Carryforward authority (surplus + unspent budget)$25,679,706 ITEM 10: GENERAL FUND SURPLUS 4 GENERAL FUND RESERVE REQUIREMENTS City Council Policy No. 74 – General Fund Reserve Guidelines •Maintain General Fund reserves at a target of 40% of General Fund annual operating expenditures. •At the discretion of the City Council, reserve levels in excess of the 40% target requirement, may be used for one-time opportunity cost purposes. ITEM 10: GENERAL FUND SURPLUS $167.2 million as of June 30, 2025 69% or $70 million in excess of policy requirement 5 PENSION LIABILITY STATUS ITEM 10: GENERAL FUND SURPLUS CalPERS Miscellaneous & Safety Plan Status June 30, 2023 June 30, 2024 Total Liability $ 919,431,728 $ 961,656,866 Market Value of Assets $ 677,997,640 $ 728,126,246 Unfunded Liability $ 241,434,088 $ 233,530,620 Funded Ratio 73.7%75.7% CalPERS Target Rate of Return 6.8%6.8% CalPERS Rate of Return*5.8%9.3% * Annual rates of return/loss were earned in preceding fiscal years and incorporated into subsequent actuarial valuation reports RECOMMENDED FUNDING SCHEDULE 6 $10 M initial investment $7.5 M in contributions for 4 fiscal years 6.25% target rate of return +x $118 M In 20 years = GOAL: Achieve investment balance to maintain 80% funded status and fund a reduction in CalPERS discount rate from 6.8% to 6.25% over a 20-year time horizon ITEM 10: GENERAL FUND SURPLUS 8 PENSION LIABILITY STATUS •Section 115 Trust has earned $2.9 million since inception •If third contribution of $7.5 million is approved, combined funded status would be 78.6% ITEM 10: GENERAL FUND SURPLUS $756,325,493 , 78% $205,630,620 , 21% $13,299,247 , 1% Funded Status with Section 115 Trust Funded Unfunded Below 80% Requirement 9 SUMMARY OF CARRYFORWARD REQUESTS AUTHORIZED BY CITY MANAGER ITEM 10: GENERAL FUND SURPLUS Fund Amount General Fund $624,326 Non General Fund 812,491 Examples: •First Due fire inspection software •Completion of Fire and Police vehicle outfitting •Ongoing public art maintenance contract costs •Irrigation system upgrades at Safety Training Center 10 CARRYFORWARD REQUESTS FOR CITY COUNCIL APPROVAL General Fund $6,053,026 Carlsbad Village Trenching $5,220,000 Safer Streets - local traffic safety support $353,571 Encampment abatement activities $328,089 Outfitting for three police patrol vehicles $151,366 ITEM 10: GENERAL FUND SURPLUS 11 CARRYFORWARD REQUESTS FOR CITY COUNCIL APPROVAL Non-General Fund $6,220,719 Complete Fleet vehicle replacements from prior fiscal year $4,832,980 Complete Information Technology replacements from prior fiscal year $845,879 Affordable Housing Trust ongoing property acquisition $391,860 City website Americans With Disabilities Act compliance services $150,000 ITEM 10: GENERAL FUND SURPLUS 12 STORM WATER PROTECTION PROGRAM TRANSFER •Solid Waste Enterprise Fund includes the city’s Storm Water Management Program, responsible for the maintenance of the city’s storm water system •Fiscal year 2025-26 adopted budget includes revenues of $3.6 million and expenses of $5.1 million •$1.5 million deficit is after accounting for General Fund transfer of $2 million •Ongoing program deficit is approximately $4 million •Staff is recommending an additional $6 million transfer to ensure sufficient funding of the program into the future ITEM 10: GENERAL FUND SURPLUS 13 SUMMARY OF RECOMMENDED GENERAL FUND BUDGET ACTIONS ITEM 10: GENERAL FUND SURPLUS Carryforward authority (surplus + unspent budget)$25,679,706 Previously approved grants/developer deposits 123,396 Third Section 115 Trust contribution*7,500,000 City Manager approved requests below $100,000 624,326 City Council approved requests above $100,000 6,053,026 Transfer to Storm Water Protection Program 6,000,000 Total spending $20,300,748 Remaining authority $5,378,958 *Does not require appropriation 14 FISCAL YEAR 2024-25 GENERAL FUND RESERVE SUMMARY ITEM 10: GENERAL FUND SURPLUS Year -end summary:Total Reserve %* Unassigned at 2024-25 FYE $167,236,221 69% Proposed use of surplus -20,300,748 -8% Updated estimated unassigned fund balance $146,935,658 61% 40% minimum reserve policy $96,959,931 40% Funds in excess of reserve requirement $49,975,727 21% *Calculated as a percentage of the FY 2025-26 adopted budget of $242,399,827.