HomeMy WebLinkAbout2025-09-23; City Council; Resolution 2025-217Exhibit 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
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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
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