HomeMy WebLinkAbout2025-11-18; City Council; 12; Economic and Financial Update for Fiscal Year 2025-26, First QuarterCA Review CKM
Meeting Date: Nov. 18, 2025
To: Mayor and City Council
From: Geoff Patnoe, City Manager
Staff Contact: Zach Korach, Finance Director
zach.korach@carlsbadca.gov, 442-339-2127
Matt Sanford, Economic Development Director
matt.sanford@carlsbadca.gov, 442-339-5987
Subject: Economic and Financial Update for Fiscal Year 2025-26, First Quarter
Districts: All
Recommended Actions
Receive a report on the economic and financial update for the first quarter of fiscal year
2025-26, July through September, and provide direction as appropriate.
Executive Summary
The City Manager has committed to providing quarterly updates to the City Council on the city’s
economic outlook and finances. The update reviews the city’s economic and fiscal health and
serves as a measure of budgetary performance.
In this report, staff will provide information on national, state, regional and Carlsbad-specific
economic data and the city’s most recent financial data. This report also details recent
economic trends and information that may have an impact on our local economy.
Explanation & Analysis
Economic update
Carlsbad’s economy remains resilient and diversified, supported by five key industry clusters:
life sciences, technology, clean technology, sports and active lifestyle, and hospitality and
tourism. These industries continue to provide some stability amid mixed national economic
signals and evolving federal policy directions.
Gross regional product
In 2025, Carlsbad has the second largest gross regional product in San Diego County at more
than $18.6 billion, trailing only the City of San Diego. From 2024 to 2025, Carlsbad’s gross
regional product grew by $800 million. Some industries saw growth, like hospitality and
tourism, real estate, and health care, while others saw declines, like manufacturing,
professional, scientific and technical services (commonly known as research and development),
and office administrative services.
Nov. 18, 2025 Item #12 Page 1 of 30
Labor market conditions
The unemployment rate in Carlsbad shows the city remains near full employment, though
modest softening is evident amid cooling national labor trends. Carlsbad’s unemployment rate
increased during the first two months of the quarter, averaging around 5%, reflecting slower
hiring across several industries. Since official September data was not released due to the
federal government shutdown, supplemental data from the ADP National Employment Report
was used to continue forecasting. This report is an independent measure of the labor market
based on the weekly payroll data of more than 26 million private-sector employers across the
country. This data shows a national decline of 32,000 private-sector jobs, suggesting a cautious
hiring sentiment will extend into early fall.
Job postings for the quarter totaled 6,031, an increase from the previous quarter and up slightly
from the same period last year. Approximately 1,267 Carlsbad employers posted open
positions. Nationally, job openings were about 7.23 million in August 2025 (the latest available
due to the shutdown), roughly 420,000 lower than a year earlier, indicating continued cooling
in labor demand. Despite this, job growth continues in health care, social assistance, and
transportation, while layoffs remain low (consistent with ADP’s September report, showing
softer hiring). The median posting duration is 22 days, down from the 30–31 days common in
prior years, which indicates workers are more readily available.
Commercial real estate trends
The commercial real estate market in Carlsbad remained relatively stable during the third
quarter of 2025 when compared to the region as a whole. Industrial vacancy increased by 0.5%,
office vacancy declined by 0.4% and retail vacancy held steady, indicating balanced conditions
across sectors. According to CoStar, a company that provides data and analytics for the
commercial real estate industry, Carlsbad has fared better than the surrounding San Diego
Region, but uncertainty is hurting absorption.
Rental rates remained stable across all product types. As of September, average asking rent per
square foot per year were $43.68 for retail, $38.44 for office, and $22.20 for industrial space.
These trends suggest that Carlsbad’s commercial market is maintaining resilience, supported by
a diversified industry base and steady tenant demand even as broader regional markets show
signs of slowing.
Housing market and cost of living
In September 2025, Carlsbad’s median home price was $1.5 million, up 1.7% year-over-year. In
September, the median days on market jumped to 58 days, up from 38 days in June. While it is
normal to see a seasonal change in days-on-market, this is earlier than usual, with most peaks
being in December. This could indicate a slowing in the housing market; a trend staff will
continue to monitor. Elevated mortgage rates and limited inventory continue to influence the
market, posing ongoing constraints for workforce housing and employer recruitment efforts.
Federal policy and macroeconomic considerations
The U.S. Chamber of Commerce’s Q3 2025 Small Business Index reached a record 72.0, up from
65.2 last quarter, reflecting increased optimism among small firms despite persistent
headwinds. Inflation and price increases were the top concern for 46% of small businesses,
while trade policy tensions and global supply chain disruptions continue to pose key risks.
Nov. 18, 2025 Item #12 Page 2 of 30
High borrowing costs are further constraining access to credit, particularly for smaller
employers and startups, even as the Federal Reserve’s recent rate cuts have provided only
limited relief.
The labor market is cooling, with fewer jobs posted and rising unemployment. For now, the
market continues to favor job seekers, yielding increased wage pressures. Nationally, the
economy is expanding modestly after early-year contraction, though policy uncertainty and
international trade volatility could impact Carlsbad’s advanced manufacturing businesses in the
months ahead.
Fluctuating trade policy, including varying tariff levels on imports from China, Canada, and
Mexico, among others, has continued to affect input costs and supply chains across the U.S.,
with downstream impacts on Carlsbad companies.
Nationally, real gross domestic product rebounded to an annualized growth rate of 3.8% in the
second quarter of 2025 (April–June) after a contraction in the first quarter.
Conclusion
We are in an uncertain economic environment with near-daily changes in outlook. However,
Carlsbad’s economy remains relatively strong and is in a competitive position to weather
ongoing macroeconomic changes. Continued monitoring of federal policy impacts, labor-force
dynamics, housing affordability pressures and cost-of-living constraints will be essential in
adapting strategies that support local economic resilience.
Staff will continue to monitor economic conditions and provide quarterly updates to the City
Council.
The complete economic scan for the first quarter of fiscal year 2025-26 is provided as Exhibit 1.
Economic indicators are tracked on a dashboard available at carlsbadca.gov/economy.
Financial update
Fiscal year 2023-24 experienced strong growth and revenue performance, specifically with
property tax and sales tax. However, as the year progressed, indications of an economic
slowdown became more evident. The total amount of taxable receipts began to decline when
compared to previous periods, and revenues from the transient occupancy tax on overnight
lodging ended the year very similarly to the prior year. Similar trends were experienced in fiscal
year 2024-25, namely with sales tax and diminishing consumer demand, given the sustained
inflationary increases across the region.
Bolstered by property tax revenues, the General Fund’s total revenues remain strong, though
sales tax revenues continue to be sensitive to changes in consumer demand. It will be critical to
monitor the city’s revenues and expenditures as the city continues through fiscal year 2025-26
and take necessary proactive steps to continue mitigating economic uncertainties.
The September 2025 Financial Status Report is provided as Exhibit 2.
Nov. 18, 2025 Item #12 Page 3 of 30
Revenues
The city’s General Fund is its primary operating fund, used to account for all financial activities
that aren't specifically designated for another fund, and primarily covers the costs of essential
services such as police, firefighting, parks and recreation, general government operations and
other basic city functions. The General Fund’s top three revenue sources – the property, sales
and transient occupancy taxes – reached historic highs in fiscal year 2023-24. Fiscal year 2024-
25 experienced much smaller growth in property and transient occupancy taxes, with both
realizing 4% increases while sales taxes realized a 3% reduction.
Because revenue growth continues to level off, the current fiscal year’s adopted budget took a
conservative approach at estimating these revenue sources. . Total revenues are down $2.5
million or 5% over the prior year, which is mainly attributed to a drop in sales taxes. The table
below shows the differences in revenue when comparing the first nine months of fiscal year
2025-26 with the same period in the prior fiscal year.
Fiscal year 2025-26 year-to-date revenues as of September 2025 compared to fiscal year
2024-25 as of September 2024
Revenue category Change ($) Change (%)
Investments, property
income $625,368 25.0%
Interdepartmental charges $103,754 8.0%
Other revenue sources $83,030 74.0%
Intergovernmental $71,686 18.0%
Fines and forfeitures $35,784 33.0%
Other taxes $34,955 1.0%
Property tax $4,640 0.1%
Transient occupancy tax -$46,260 -0.4%
Licenses and permits -$95,629 -11.0%
Charges for services -$469,024 -11.0%
Sales tax -$2,810,273 -18.0%
Total revenues -$2,461,969 -5.0%
Major revenue sources
Property tax
The majority of property tax revenue is collected in December and April each year. Increases of
$4,640 for first three months of the fiscal year are due to a 4.3% increase in assessed property
values when compared to last year. Current taxes received are up by $242,000 or 16% mainly
due to increased assessed property values. This increase is offset by a decrease in revenues
from aircraft taxes of $203,000 or 7% due to a decrease in the assessed values of aircraft.
Sales tax
Sales tax revenue is $2.8 million lower in the first three months of the fiscal year than in the
same period in the previous fiscal year. To date, sales tax revenue represents receipts that were
Nov. 18, 2025 Item #12 Page 4 of 30
collected for the second quarter of calendar year 2025 as well as the first advance of the city’s
sales tax revenue from the third calendar quarter of 2025.
The city experienced accelerated recovery in fiscal year 2021-22, after the impacts of the
pandemic. Fiscal years 2022-23 and 2023-24 had historically high levels of sales tax revenue
driven by inflation and sustained by consumer demand as well as the correction of a taxpayer
error. The city experienced a leveling off and slowdown in fiscal year 2024-25 due to lingering
inflationary levels and diminishing consumer demand. This trend is expected throughout fiscal
year 2025-26.
Sales occurring in the second calendar quarter of 2025, the most recent data available, show a
dramatic decline in new sales, which is driven by a taxpayer correction in the previous period.
The largest economic segments in the city are automobile dealers, consumer goods and
restaurants. Together, they generate approximately 70% of the city’s sales tax revenue.
A significant portion of the year-over-year decrease is attributed to the auto sales sector and a
correction in methodology for how respective sales were being assigned and reported for a
particular taxpayer. Without considering the error correction, on an economically adjusted
basis, the city’s fourth quarter sales tax receipts were down about 7.6% compared to the first
quarter in the previous year. This decline indicates declining consumer demand in response to
sustained inflationary increases since 2021.
Staff will continue to monitor sales tax trends closely and keep the City Council informed of any
significant changes.
Transient occupancy tax
Year-to-date transient occupancy tax figures represent taxes collected on overnight stays at
lodging businesses through the month of August 2025. The revenue received in the first three
months of the fiscal year represents a slight decrease of $46,000 or 0.4% when compared to
the same year-to-date period last year.
Occupancy rates over the last 12 months have been 75.0% on average, which is slightly lower
when compared to the prior year of 79.3%. Average daily room rates in July, August and
September of 2025 were 2.1% lower than the previous year on average.
Expenditures and encumbrances
The city’s total General Fund expenditures and encumbrances – those funds either spent or
committed for specific expenses – through the month of September 2025 are $87.5 million,
compared to $81.0 million at the same time last year. The remaining budget available through
the fiscal year ending June 30, 2026, is $176 million, or 67% of the total approved.
Excluding transfers out, contingencies and non-departmental charges, the percentage available
on Sept. 30, 2025, is 67%, 1% more than the 66% available in the prior year on Sept 30, 2024.
Pension funding
The cost of CalPERS, the state pension system for government employees and pension funding,
has been and will continue to be a challenge for participating agencies like the City of Carlsbad.
CalPERS administers the city’s defined benefit pension plan, and costs have been increasing in
past years as CalPERS addresses a structural shortfall in the plan’s assets to cover unfunded
Nov. 18, 2025 Item #12 Page 5 of 30
actuarial liabilities, the shortfall when a pension plan's assets are less than the value of the
promised benefits it owes to current and future retirees.
In support of CalPERS strategies for plan sustainability and as part of the city’s strategic, long-
term approach to financial management, the city actively manages its unfunded pension costs.
Since fiscal year 2016-17, the City Council has approved additional discretionary payments of
$56.4 million to decrease future costs related to the city’s unfunded actuarial liability and strive
to achieve a funded status of 80% in accordance with City Council Policy No. 86.
CalPERS’ latest valuation report (as of June 30, 2024) indicated the city had a combined pension
funded status of 75.7%, improved from the prior year’s status of 73.7%. This increase was
predominantly driven by CalPERS’ fiscal year 2023-24 investment return of 9.3%, above its
target of 6.8%, and will be reflected in the city’s required contributions in fiscal year 2025-26.
The City Council approved the establishment of a public agencies post-employment benefits
trust (Section 115 trust) in 2023. This trust 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 if
the assets were kept within the General Fund. The City Council approved an initial trust
contribution of $10 million in September 2023 and a subsequent $7.5 million contribution in
October 2024. The City Council approved an additional $7.5 million contribution in September
2025 to be made into the trust in October 2025.
As of Sept. 30, 2025, the city’s pension trust had a balance of $21,234,000, including the initial
$10 million contribution and second annual contribution of $7.5 million. Since the trust was
established, the investments have earned $3.7 million. Considering the assets held by CalPERS
as well as the assets held in the city’s trust, the combined pension funded status as of
September 2025 is 77.9%.
Staff will continue to monitor the activities in the trust and report the city’s pension-funded
status to the City Council quarterly.
Enterprise funds
The city’s water and wastewater enterprise funds1 continue to operate in line with budgeted
expectations. Operations at the city’s municipal golf course, The Crossings at Carlsbad, have
remained relatively consistent year over year.
Fiscal Analysis
There is no fiscal impact associated with the third quarter economic and financial update.
Next Steps
Staff will continue to develop tools to understand the economy, attract businesses and cultivate
talent, and provide quarterly updates to the City Council on the economic outlook and the city’s
finances.
1 Enterprise funds are government funds usually used to account for operations that are financed and operated in
a manner similar to private business enterprises, with the services provided paid for primarily through user
charges.
Nov. 18, 2025 Item #12 Page 6 of 30
Environmental Evaluation
The proposed action is not a “project” as defined by California Environmental Quality Act
Section 21065 and CEQA Guidelines Section 15378(b)(5) and does not require environment
review under CEQA Guidelines Section 15060(c)(3) and 15061(b)(3), because the proposed
action to receive an economic and financial update is an organizational or administrative
government activity that does not involve any commitment to any specific project which may
result in a potentially significant physical impact on the environment. Any subsequent action or
direction stemming from the proposed action may require preparation of an environmental
document in accordance with CEQA or the CEQA Guidelines.
Exhibits
1.Carlsbad Economic Scan FY 2025-26, First Quarter
2.September 2025 Financial Status Report
Nov. 18, 2025 Item #12 Page 7 of 30
1
Third Quarter, Fiscal Year 2024-25
The following scan provides an overview of key economic indicators for July, August, and September 2025
for the City of Carlsbad. This economic scan is updated quarterly to provide information that is relevant to
the health of Carlsbad’s economy. For regularly updated information regarding the Carlsbad economy and
economic development visit carlsbadca.gov/economy.
GROSS REGIONAL PRODUCT
Carlsbad GRP (Source: Lightcast, 2025)
$18.6B
In 2025, Carlsbad had the second largest gross regional product
in San Diego County at more than $18.6B, only trailing
the City of San Diego. From 2024 to 2025, Carlsbad’s GRP
grew by $800 million. Some industries saw growth, like hospitality and tourism, real estate, and health care, while
others saw declines, like manufacturing, professional, scientific
and technical services (commonly known as research and
development), and office administrative services.
JOBS
Unemployment Rate (Source: California Employment Development Department, August 2025 Report)
Unemployment rate in Carlsbad shows the city remains near full employment, though modest softening is evident amid
cooling national labor trends. Carlsbad’s unemployment rate increased during the first two months of the quarter, averaging
around 5%, reflecting slower hiring across several industries. Since official September data was not released due to the federal
government shutdown, supplemental data from the ADP National Employment Report was used to continue forecasting. This
data shows a national decline of 32,000 private-sector jobs, suggesting cautious hiring sentiment extending into early fall.
0
1
2
3
4
5
6
Jan Feb Mar Apr May Jun Jul Aug Sep
Carlsbad Unemployment Rate 2022 -2025
2022 2023 2024 2025
0
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2
3
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7
Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25
Unemployment Rate Comparison
Last 12-Months
Carlsbad San Diego County California North County Avg w/o Carlsbad
Innovation + Economic Development Department
Gross Regional Product
Released Nov 18, 2025
Exhibit 1
Nov. 18, 2025 Item #12 Page 8 of 30
2
Job Postings (Source: Lightcast, July - September 2025)
6,031
Job postings for the quarter totaled 6,031, an increase from the previous quarter and up slightly from the same period last year.
Approximately 1,267 Carlsbad employers posted open positions.
Nationally, job openings were about 7.23 million in August 2025
(latest available due to the shutdown), roughly 420,000 lower
than a year earlier, indicating continued cooling in labor demand. Despite this, job growth continues in health care, social assistance,
and transportation, while layoffs remain low (consistent with
ADP’s September read showing softer hiring). The median posting
duration is 22 days, down from the 30–31 days common in prior
years, which indicates workers are more readily available.
In-Demand Skills (Source: Lightcast, October 2025)
Job Postings This Quarter
Marketing, Project Management, and Audit skills are currently among the most in-demand skills for Carlsbad employers,
showing rapid projected growth. However, a noticeable gap remains in the availability of these skills, as seen by the lower
frequency in job postings compared to professional profiles.
Nov. 18, 2025 Item #12 Page 9 of 30
3
CAPITAL
Interest Rates (Source: U.S. Department of the Treasury, September 2025)
The Federal Reserve lowered interest rates cutting the benchmark interest rate by 25 basis points in September, to a target
range of 4-4.25%. Inflation data was delayed in October due to the federal government shutdown, and The Federal Reserve
Chair stated that they were “flying blind” as they consider future cuts. Short-term Treasury yields slipped, with the 1-year
note yielding approximately 3.66% in September, and the 10-year at about 4.12%. Meanwhile, the average 30-year fixed
mortgage rate dipped to the low 6% range (about 6.30%) by late September, thanks in part to easing long-term yields
September 2024
One-year interest rate 3.98%
10-year interest rate 3.81%
30-year interest rate 4.14%
September 2025
One-year interest rate 3.68%
10-year interest rate 4.16%
30-year interest rate 4.73%
COMMERCIAL REAL ESTATE
Market Vacancy Rates and Rent per Square Foot (Source: CoStar, October 2025)
The commercial real estate market in Carlsbad remained
relatively stable during the third quarter of 2025 when
compared to the region as a whole. Industrial vacancy increased
by 0.5%, office vacancy declined by 0.4%, and retail vacancy held
steady, indicating balanced conditions across sectors. According
to CoStar, Carlsbad has fared better than the surrounding San
Diego Region, but uncertainty is hurting absorption.
Rental rates remained stable across all product types. As of
September, average asking rents per square foot, per year were
$43.68 for retail, $38.44 for office, and $22.20 for industrial
space. These trends suggest that Carlsbad’s commercial market
is maintaining resilience, supported by a diversified industry
base and steady tenant demand even as broader regional
markets show signs of slowing.
9.6%
Industrial vacancy rate
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2023 2024 2025
Carlsbad Commercial Vacancy Rates
Carlsbad Retail Carlsbad Office Carlsbad Industrial
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
Retail Office Industrial Retail Office Industrial
Carlsbad North County w/o Carlsbad
Market Rent Per SF
2024 Q3 2024 Q4 2025 Q1 2025 Q2 2025 Q3
Nov. 18, 2025 Item #12 Page 10 of 30
4
TOURISM
Occupancy averaged 75% in the third quarter, down from 79.3% during the same period in 2024, a year-over-year drop attributed
primarily to a poor September. September posted noticeably lower occupancy compared to July and August, reflecting a late-
season softening. These trends suggest continued stability in the city’s lodging sector but also highlight growing sensitivity to
shifts in traveler sentiment and broader economic uncertainty heading into 2026. Visit Carlsbad has indicated a bounce back in
October, noting September as an anomaly.
42 With 42 hotels in Carlsbad, tourism is a major industry in terms of
employment and economic impact. It is also a major contributor
to city revenue, through TOT and sales tax generation. Below
are several indicators reflecting the health of the city’s tourism economy.
Hotel Occupancy (Source: Smith Travel Research, September 2025 Report)
Carlsbad’s average daily room rate (ADR) for the third quarter dipped to $252.20, down from $257.58 during the same period in
2024. July and August rates were comparable to the same months in 2024, but the lower occupancy in September pushed ADR
down to lower the quarterly average. As noted previously, September is seen by the industry as an anomaly, and a rebound is
expected in October.
Hotel Average Daily Room Rate (Source: Smith Travel Research, September 2025 Report)
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Hotel Occupancy Trend
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San Diego County, CA City of Oceanside, CA
City of Newport Beach, CA City of Carlsbad
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Hotels in Carlsbad
Nov. 18, 2025 Item #12 Page 11 of 30
5
INCOME + HOUSING
Median Household Income (Source: 2023 ACS 5-Year Estimates, the latest year available)
Median household income in Carlsbad continues to exceed county income levels. The median income for a household in
Carlsbad in 2023 was $138,326, (adjusted for inflation), which was $5,200 higher than the previous year, and $36,000
more than the county median household income. Carlsbad has generally outpaced the region in terms of household
income growth.
Median Home Price (Source: Realtor.com Home Value Index - October 2025)
In September 2025, Carlsbad’s median home price was $1.5 million, up 1.7% year-over-year. In September, the median
days on market jumped to 58 days, up from 38 days in June. While it is normal to see a seasonal change in days-on-
market, this is earlier than usual, with most peaks being in December. This could indicate a slowing in the housing market, a trend staff will continue to monitor.
Staff have used Zillow as a data source for tracking the median home price in Carlsbad. A recent change in methodology
has put Zillow’s data out of alignment with other data providers. As such, staff have updated the data source for this
indicator to the National Association of Realtors.
2019 2020 2021 2022 2023_
City of Carlsbad
Median Household Income $123,409 $112,933 $124,669 $146,596 $138,326_
County of San Diego
Median Household Income $70,588 $74,855 $79,324 $98,928 $102,285_
City of Carlsbad
Per Capita Income $63,079 $57,607 $65,430 $66,944 $70,896_
County of San Diego
Per Capita Income $40,389 $39,737 $44,377 $46,957 $49,891_
Nov. 18, 2025 Item #12 Page 12 of 30
6
BUSINESS ACTIVITY
Building Permits (Source: City of Carlsbad, October 2025)
Between July and September, residential permits issued (848)saw an slight increase in permits issued, up from 830
in the previous year.
Commercial permits issued (119) decreased slightly
compared to the previous quarter (124).
Business Licenses (Source: City of Carlsbad, October 2025)
There were a total of 2,441 business licenses issued last quarter,
including 995 non-residential, 573 residential, and 873 ou tside-the-
city licenses. This is a slight decline of 57 total businesses over the
same quarter of 2023. The total number of Carlsbad business licenses
is 9,920.
The number of licenses issued does not reflect the number of
businesses in Carlsbad as a business may carry multiple licenses,
short-term vacation rentals are required to get a license, and
businesses outside of Carlsbad that do business in the city or with the
city are required to get a license. It is estimated that there are
approximately 6,656 businesses in Carlsbad, a net decrease of 80
total businesses over the previous year.
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2024 2025
Business Licenses Issued by Quarter
Non-Residential Residential Outside City Total
Carlsbad Businesses by City Council District
Business License Activity by District
District 1 District 2 District 3 District 4
New 36 30 15 20
Renewing 455 633 206 189
Total 491 663 221 209
Nov. 18, 2025 Item #12 Page 13 of 30
7
BUSINESS ACTIVITY Continued
Largest Employers (Source: City of Carlsbad, October 2025)
The following is a list of the largest employers by City Council district based on information about total employment as
submitted by a business during the business license process.
New Businesses in Carlsbad (Source: City of Carlsbad, October 2025)
New business are defined as entities that have received a license for a location where they previously did not exist. This could also include existing businesses that have changed ownership or business license type. The information below
includes new non-home-based businesses in the city according to business license filings.
District 1
• Wholeness Collective Therapy Group
• Carlsbad Village Yoga Co-Op• Bayshire Carlsbad
• Hospice of The North Coast
• Sprouts Farmers Market
District 2
• Life Technologies Corporation
• Legoland California• Viasat Inc
• lonis Pharmaceuticals
• Genmark Diagnostics Inc
District 3
• Park Hyatt Aviara
• Costco
• Hilton Garden Inn
• Vons• Raken
District 4
• Omni La Costa
• La Costa Glen Carlsbad CCRC
• Glenbrook HC
• The Henry• The Vintage Glass
RG Global IncBabies in Bloom LLC
Mantra Sukha LLC-Tea Lounge
The Drydown
Lisa Hanson Life Coaching and Consulting
Cbad Chiropractic Mantra Sukha LLC-Yoga And Meditation
Miss Missy Hair Emerveille
Refined Esthetics By Averey
Terra Pilates And Wellness
Patti Adler
Coastal Custom Framing And Art Time Therapy Group
Trnql Acupuncture Epc Toys Inc
Andrea Morinoue Therapy
Brixton LLC
Flint Design Building LLC
Air Control Systems Inc
United Medical Doctors
Graze Craze Carlsbad
Cove Work LLC
Ae Carlson Design and Build
Immersion
Property Management Professionals LLC
Core Equipment Inc
Law Office Of Flor De Maria Levandoski
Tosti Design Inc
Advisureiq Inc
Prime Executive Offices LLC
Joseph Hanna Development Inc
Brandon P Hirsch Md Inc
Paseo Dentistry Mosaic Minds Therapy
The Henry Ichitaru Ramen The Tox Carlsbad
District 1
District 4
District 3
District 2
Nov. 18, 2025 Item #12 Page 14 of 30
8
INDUSTRY CLUSTERS
Life Sciences (Source: City of Carlsbad and Lightcast - 2025)
The Life Sciences industry cluster employs 6,415 workers across 115 firms and experienced a 17% increase in employment
between 2019 and 2024. The cluster is 5.18 times more concentrated in Carlsbad than the national average and annual wages
per worker average $170,820.
San Diego County and California have historically experienced parallel employment growth in the Life Sciences cluster.
Between 2010 and 2020, employment in Carlsbad surged by 75%, with a particularly strong 40% growth from 2016 to 2018.
While growth slowed between 2018 and 2020, the sector rebounded significantly, growing 17% between 2019 and 2024.
Technology (Source: City of Carlsbad and Lightcast - 2025)
The Information and Communications Technologies (ICT) cluster employs 8,470 workers across 327 firms in Carlsbad and is
2.18 times more concentrated in Carlsbad than the national average. Annual wages per worker average $181,562, and the
ICT industry cluster experienced a 5% increase in the number of jobs between 2019 and 2024.
Between 2010 and 2020, San Diego County and California experienced steady parallel growth in ICT, while Carlsbad saw an initial decline from 2012 to 2015. However, since 2015, employment in Carlsbad’s ICT sector has trended upward. From 2019 to 2024,
employment in Carlsbad grew by 5%, compared to San Diego County which did not have any growth across the industry.
Cleantech (Source: City of Carlsbad and Lightcast - 2025)
Between 2019 and 2024, the number of workers employed at Cleantech firms increased by 15%. Across the industry cluster,
36 Cleantech firms in Carlsbad employed more than 3,780 people. The average annual wage per worker is $200,304, and
the Cleantech industry cluster in Carlsbad is 4.38 times more concentrated than the national average.
Carlsbad’s Cleantech industry initially declined between 2010 and 2012 before experiencing steady growth through 2020.
While employment growth peaked in California and San Diego County in 2013, Carlsbad has continued its upward trend.
Between 2019 and 2024, employment in Carlsbad’s Cleantech sector grew 15%, significantly outpacing the 3% growth in
San Diego County.
Sports Innovation & Design (Source: City of Carlsbad and Lightcast - 2025)
The Sports Innovation & Design industry cluster employs 1,754 workers across 113 firms and experienced a 28% increase in
employment between 2019 and 2024. The cluster is 17.37 times more concentrated in Carlsbad than the national average
and annual wages per worker average $134,176.
Previously, Carlsbad’s employment in the Sports Innovation & Design cluster had been on a steady decline since 2013.
San Diego County and California also saw declines starting in 2015, with sharp drops between 2019 and 2020 due to the
COVID-19 pandemic. However, Carlsbad experienced a strong recovery, with employment increasing 28% between 2019
and 2024, significantly outpacing San Diego County’s 9% growth.
Hospitality & Tourism (Source: City of Carlsbad and Lightcast - 2025)
Carlsbad’s Hospitality & Tourism cluster is about 1.42 times more concentrated in Carlsbad than the national average and
employs 14,170 people across 674 businesses. Hospitality & Tourism experienced a sharp 15% decrease in employment
between 2019 and 2024, driven by the effects of the COVID-19 pandemic between 2019 and 2020. Average annual wages per
worker remain low relative to other key industry clusters, with workers earning $44,930 on average.
Carlsbad, San Diego County, and California saw severe employment declines in the Hospitality & Tourism sector between
2019 and 2020 as businesses such as theater companies, amusement parks, and arcades shut down due to the COVID-19
pandemic. While the sector has struggled to recover, Carlsbad experienced a 15% decline from 2019 to 2024, exceeding the
1% decline in San Diego County. Nov. 18, 2025 Item #12 Page 15 of 30
9
INDUSTRY IMPACT
Largest Industries (Source: Lightcast, October 2025)
Carlsbad’s economy significantly exceeds the national average for jobs in manufacturing, accommodation & food services,
and professional, scientific & technical services. These sectors, which would include tech, life sciences, and other innovation
industries are generally more resilient to recessions, also represent significant job growth in the economy.
GRP by Industry
Industry size by employment
Nov. 18, 2025 Item #12 Page 16 of 30
10
INNOVATION
Patents (Source: 2024 Carlsbad Patent Study)
The Carlsbad innovation economy is powered by the key industry clusters of Life Sciences, Information & Communications
Technology, Sports Innovation & Design and Clean Technology. The figure below shows consistently strong patent activity
over the past decade with an elevated level from 2017-2020. Patents are a key indicator of economic competitiveness and
growth. In the case of Carlsbad it also demonstrates the diversity of the economy along with other economic drivers such
as tourism.
Carlsbad Patents by Industry
0
200
400
600
800
1000
1200
1400
1600
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Carlsbad Patents by Year, 2013-2023
The highest number of patents
are issued in the broad
manufacturing category which
includes technology, electronics,
apparel, sporting goods, and
transportation. Complimenting
this are the patents issued in
the information category which
includes satellite, wireless, and
wired telecommunications.
Patents in these two categories
demonstrate a vibrant innovation
ecosystem.
Released November 18, 2025
The quarterly economic scan is developed by the City of Carlsbad Economic Development Department.
For more information, visit carlsbadca.gov/economy, or contact the team at business@carlsbadca.gov.
0
100
200
300
400
500
600
700
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Patent Count per Year by Industry (2013-2023)
Administrative and Support and Waste Management and Remediation Services Agriculture, Forestry, Fishing and Hunting
Arts, Entertainment, and Recreation Construction
Educational Services Health Care and Social Assistance
Information Manufacturing
Professional, Scientific, and Technical Services Real Estate and Rental and Leasing
Retail Trade Transportation and Warehousing
Nov. 18, 2025 Item #12 Page 17 of 30
Exhibit 2
This report summarizes the City of Carlsbad’s General Fund revenues and expenditures through September 30,
2025. It compares revenues and expenditures for the first three months of fiscal year 2025-26 and fiscal year
2024-25. In addition, the financial status of the Water, Wastewater and Golf Course Enterprise Funds are
included. This report is for internal use only. The figures presented here are unaudited and have not been
prepared in accordance with Generally Accepted Accounting Principles.
General Fund Revenues
Property Taxes ($4.8 million) – The majority of property tax revenue is collected
in December and April each year. According to the County of San Diego
Assessor’s Office, assessed values in Carlsbad have increased by 4.3% for fiscal
year 2025-26. This is the 13th year in a row that Carlsbad’s assessed values have
increased from year to year, and in line with assessed value increases with other
cities in San Diego County for the year. The increase in this year’s assessed values
is due to increases in the assessed values of residential, 5.3%, industrial, 3.4%, properties in the city and
commercial, 4.5%. This is the 11th year in a row since the Great Recession ended that the city saw increases in
assessed values in all three property components (residential, commercial and industrial). Although increases in
residential assessed values were recorded for fiscal year 2025-26 and for-sale home prices are remaining steady,
the county is experiencing historically low for-sale housing inventory as higher interest rates are decreasing
home affordability.
The property taxes for the first three months of the fiscal year have slightly increased by 0.1% when compared
to the prior fiscal year. The primary reasons for the increase are:
•Current taxes are up by $242,000 or 16% mainly due to increased assessed property values. The first
installment of taxes for the fiscal year will be received by the city in December.
•Supplemental taxes are up $54,000 or 49%, these taxes are driven by the change in assessed value due
to changes in property ownership.
•Aircraft taxes are down $203,000 or 7% due to a decrease in aircraft assessed values.
Sales Taxes ($12.9 million) – For the three months of the fiscal year, sales tax
revenues are $2.8 million, or 18%, lower than the same period in the previous
fiscal year. Sales tax revenues to date for the current fiscal year represent the
city’s sales tax revenues for the second calendar quarter of calendar year 2025 as
well as the first advance for the third calendar quarter of 2025.
In fiscal year 2021-22, the city experienced accelerated recovery after the
impacts of the COVID-19 pandemic. Fiscal year 2022-23 saw historically high levels of sales tax revenues driven
by inflation and sustained by consumer demand. Fiscal year 2023-24 and 2024-25 revealed a leveling from sales
growth and slowdown in consumer activity. This leveling off continues into the current fiscal year as revenue
trends remain slightly lower than a year ago overall. Consumers are more likely to wait for greater improvement
of household economic conditions before extending themselves again, inspiring the next sales tax growth cycle.
September 30, 2025
0.1%
-18%
Nov. 18, 2025 Item #12 Page 18 of 30
Quarterly Financial Report _______________________________________________________________ 2
The largest economic segments in the city are automobile dealers, general consumer goods, and restaurants.
Together, they generate approximately 70% of the city’s sales tax revenues. For sales occurring in the second
calendar quarter of 2025 (the most recent data available), Carlsbad’s cash basis sales were down 16.7%, when
compared to the second quarter of 2024. The city’s largest sector, auto dealers, showed a 13.2% decline, which
is attributable to a taxpayer error that was correct in the previous period. With this in mind, and on an
economically adjusted basis, the city’s sales tax receipts were actually down approximately 7.6% over the
previous year and driven mainly by a decline in consumer demand, likely in response to the sustained inflationary
period combined with future uncertainty with the new administration.
Transient Occupancy Tax ($12.1 million) – The city’s third highest General Fund
revenue source on an annual basis is Transient Occupancy Tax (TOT or hotel tax),
estimated at $35.8 million for the current fiscal year. A tax of 10% of the rent
amount is collected on all occupancies less than 30 days (transient) in duration.
Year-to-date TOT figures represent taxes collected on hotel receipts through the
month of August 2025. TOT collected for the first three months of the fiscal year
reflects a slight decrease of $46,000 or 0.4%, when compared to the previous year.
Currently, there are 5,059 hotel rooms in the city and 44 registered short-term vacation rentals. The average
occupancy of hotel rooms over the most recent 12 months has been 75.0%, which is slightly lower when
compared to this time last year of 79.3%. Average daily room rates in July, August and September of 2025 were
2.1% lower than the previous year on average.
Business License Tax ($1.7 million) – All entities doing business in the City of
Carlsbad are required to have a valid business license. Business license revenue is
estimated at $6.8 million for the current fiscal year. Business license revenues are
up by $142,000, or 9.4%, from the previous fiscal year. The increase is due to an
increase in new license activity combined with an increase in penalty revenue
from overdue business license renewals.
There are currently 9,920 active business licenses, 57 less than the prior year. The majority of taxed businesses
(6,656 businesses) are located in Carlsbad, with 2,541 of these businesses being home-based.
Interdepartmental Charges ($1.5 million) – Interdepartmental charges are up by
$104,000 or 8% when compared with the same period last year. These charges
are generated through engineering services charged to capital projects;
reimbursed work from other funds; and miscellaneous interdepartmental
expenses charged to funds outside the General Fund for services performed by
departments within the General Fund. The increase this year is the result of the
budgeted increase in reimbursed work and miscellaneous interdepartmental
expense charged from the General Fund to other funds, which is based on the city’s most recent cost allocation
plan.
Income from Investments and Property ($3.2 million) – For the first three
months of the fiscal year, income from investments and property is up $625,000
compared to the previous fiscal year. This increase is due to several factors
including a 17.5% rise in yield from 2.92% as of September 2024 to 3.43% as of
September 2025 along with a 0.1% increase in the average cash balance held in
the General Fund as well as interest earned of $1,057,000 fiscal year to date on
the city’s Section 115 Pension Trust. The City Council approved the establishment of a Section 115 Pension Trust
in 2023 for purposes of mitigating CalPERS’ volatility, maintaining local control over city assets and preparing for
potential future decreases in CalPERS’ discount rate. An initial contribution of $10 million was authorized by the
8%
25%
9%
-0.4%
Nov. 18, 2025 Item #12 Page 19 of 30
Quarterly Financial Report _______________________________________________________________ 3
City Council followed by a second annual contribution of $7.5 million in October 2024 and a third contribution
of $7.5 million authorized in September 2025.
Inflation which had been on a historic rise for much of 2022 and into 2023 which resulted in the Federal Reserve
increasing benchmark rates all the way to a target range of 5.25%-5.5% as of July 2023, the highest it has been
in more than 20 years.
The Federal Reserve began cutting interest rates in late 2024, first lowering the range to 4.75%-5.0% in
September, followed by further reductions to 4.5%-4.75% in November and 4.25%-4.5% in December. This range
remained in place until September 2025 when rates were reduced to 4%-4.25%. Recent indicators suggest that
growth of economic activity moderated in the first half of calendar year 2025. Job gains have slowed, and the
unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated.
Recreation Fees ($1.4 million) – Recreation fees are generated through
instructional classes, camps, youth and adult sports, special events, parent
participation preschool, senior programs, and various aquatic programs.
Recreation revenues are down by $136,000 compared to last year at this time.
The decrease in revenue is due to a decrease in instructional class revenue when
compared to the same quarter last year. There is also a decrease in revenue from
the Monroe Street Pool which has been closed for a reconstruction project since April 2025. The pool is currently
under construction with plans to reopen later in calendar year 2026.
Development Related Revenues ($1.1 million) – Development related revenues,
which include building permits, planning fees, building department fees, and
engineering fees, reflect a 0.2% decrease, or $3,000, for the first three months
of the fiscal year when compared to the same time last year.
Development related fees are paid by developers to cover a portion of the cost
of reviewing and monitoring development activities, such as plan checks and
inspections. Engineering plan check fees are one of the first fees paid during the initial stages of development.
Activity during the first three months of fiscal year 2025-26 included permits associated with the new residential
construction of 9 second dwelling units across the city, 12 condominiums (Tyler Street Homes), 160 apartments
(Hope Apartments), 3 single family homes and various homeowner improvements. Commercial building permit
activity included 3052 Madison Street (1,000 sq. ft.). There was no industrial permit activity during this period.
One source of development related revenue is building permits, which are $407,000 for the current fiscal year
compared to $426,000 from the prior fiscal year, a 5% decrease.
Franchise Tax ($895,000) – Franchise taxes are generated from public utility
sources, such as San Diego Gas & Electric (SDG&E), trash collection franchises,
and cable franchises conducting business within city limits. Franchise tax
revenue is estimated to be $7.2 million for the current fiscal year. Year-to-date
franchise taxes are $27,000 lower, or 2.9%, when compared to the same period
last year.
Cable television franchise revenues (Spectrum and AT&T) are down $40,000 representing a decrease in the
number of subscription service subscribers (premium video, equipment rental, on-demand, and programming
services) as more customers continue to move to streaming services. The decrease in cable television franchise
revenues is offset by a small increase of $14,000 in trash collection franchise revenue, which resulted from the
city’s most recent contract with Republic Services, the city’s waste services provider.
-9%
-0.2%
-3%
Nov. 18, 2025 Item #12 Page 20 of 30
Quarterly Financial Report _______________________________________________________________ 4
SDG&E pays franchise taxes for the use of public land over which they transport gas and electric services. In
addition, SDG&E pays an “in-lieu” franchise tax based on the value of gas and electricity transported through
SDG&E lines but purchased from another source. The “in-lieu” tax was put in place to capture the franchise taxes
on gas and electricity that is transported using public lands, but which would not otherwise be included in the
calculations for franchise taxes. Approximately 48% of the city’s franchise taxes are anticipated to be received
from SDG&E in April 2026.
Ambulance Fees ($1.6 million) – The city bills any individual who is transported
in one of the city’s ambulances. Through September 2025, receipts from
ambulance fees are down $246,000, or 13%, compared to last fiscal year. The
decrease in revenue for the first three months of the fiscal year is mainly due to
decreases in transports. Billable transports totaled 1,672 in the first three
months of fiscal year 2025-26 versus 1,975 at the same time in the prior fiscal
year.
Other Revenue Sources ($195,000) – Other revenue sources have increased by
$83,000 when compared to the prior year and include revenues received by the
city to offset the costs of special studies or projects for developers;
reimbursements for damage done to city streets, rights-of-way, and other city-
owned property; donations; and miscellaneous reimbursed expenses. The
increase to date when compared to the prior fiscal year is related to $28,000
received in sponsorships for the TGIF Concert Series and the remainder can be
attributable to an increase in general reimbursed expenses.
Other Licenses and Permits ($371,000) – Other licenses and permits consist of
fire protection services, right-of-way, lagoon, grading, hazardous uses, and
other miscellaneous permit revenues. These permits usually increase/decrease
along with increases/decreases in development activity. Other licenses and
permit revenues can vary throughout the year. To date, the decrease of $76,000
over the prior year is primarily a result of decreased coastal development and
right-of-way permit revenue collected when compared to the same period last
year.
Fines and Forfeitures ($145,000) – Fines and forfeitures represent fees
collected for code violations, parking citations, overdue fines, and returned
checks. The city recognizes revenues when the citizen pays the fine or forfeiture,
as opposed to when the fine is imposed. The increase to date of $36,000 is
mainly due to an increase in parking citations when compared to the previous
fiscal year.
Intergovernmental Revenues ($462,000) – Intergovernmental revenues
include homeowners property tax exemption revenue and miscellaneous
receipts and grants received from the state or federal governments, as well as
local school districts. The increase of $72,000 received this year includes state
vehicle license fees of $176,000 (these were received earlier in the fiscal year
than usual) which was offset by a decrease of $152,000 in state reimbursements
for mandated costs.
-13%
-17%
74%
18%
33%
Nov. 18, 2025 Item #12 Page 21 of 30
Quarterly Financial Report _______________________________________________________________ 5
Transfer Taxes ($124,000) – When real property is sold, the County Assessor’s
Office charges a transfer tax. The transfer tax rate in San Diego County is $0.0011
multiplied by the selling price of the property. The city receives 50% of the
transfer tax charged for sales within the City of Carlsbad. Revenues decreased
by $80,000 over the same period last year due to decrease in property transfers.
Other Charges or Fees ($46,000) – Other charges or fees are generated through
the sale of city documents, such as staff reports, blueprints and copies; general
fees collected for false alarms, easements and agreements, weed abatement
and kiosk signs; and general services, such as fire mutual aid response, mall
police services, emergency response services, reports, etc. These fees are down
by $104,000 or 69% mainly due to a decrease in fire mutual aid response
reimbursements when compared to the prior fiscal year.
A detailed schedule of General Fund revenues is provided below:
-39%
-69%
Nov. 18, 2025 Item #12 Page 22 of 30
Quarterly Financial Report _______________________________________________________________ 6
REVENUE
REVENUE EXPECTED ACTUAL ACTUAL CHANGE FROM
BUDGETED THROUGH FY 2025 FY 2026 YTD 2025 TO PERCENT
FOR FY 2025-26 09/30/25 AS OF 09/30/24 AS OF 09/30/25 YTD 2026 CHANGE
TAXES
PROPERTY TAX $100,105,610 $5,004,614 $4,844,253 $4,848,893 $4,640 0.1%
SALES TAX 57,847,173 16,218,005 15,663,108 12,852,835 (2,810,273) -17.9%
TRANSIENT OCCUPANCY TAX 35,822,721 12,207,643 12,100,984 12,054,724 (46,260) -0.4%
FRANCHISE TAX 7,188,534 969,263 921,847 895,186 (26,661) -2.9%
BUSINESS LICENSE TAX 6,750,302 1,640,323 1,514,031 1,655,682 141,651 9.4%
TRANSFER TAX 1,724,744 222,265 203,854 123,819 (80,035) -39.3%
TOTAL TAXES 209,439,084 36,262,113 35,248,077 32,431,139 (2,816,938) -8%
INTERGOVERNMENTAL
VEHICLE LICENSE FEES 145,000 0 0 175,864 175,864 100%
HOMEOWNERS EXEMPTIONS 300,000 0 0 0 0 0%
OTHER REIMBURSEMENT 712,000 155,560 390,546 286,368 (104,178) -27%
TOTAL INTERGOVERNMENTAL 1,157,000 155,560 390,546 462,232 71,686 18%
LICENSES AND PERMITS
BUILDING PERMITS 2,218,000 454,354 425,869 406,626 (19,243) -5%
OTHER LICENSES & PERMITS 1,215,697 397,989 447,309 370,923 (76,386) -17%
TOTAL LICENSES & PERMITS 3,433,697 852,343 873,178 777,549 (95,629) -11%
CHARGES FOR SERVICES
PLANNING FEES 912,000 335,885 292,383 203,308 (89,075) -30%
BUILDING DEPARTMENT FEES 855,000 179,103 157,740 243,528 85,788 54%
ENGINEERING FEES 818,000 208,766 263,169 282,917 19,748 8%
AMBULANCE FEES 6,800,000 1,824,884 1,883,790 1,638,280 (245,510) -13%
RECREATION FEES 3,330,000 1,505,357 1,490,736 1,354,367 (136,369) -9%
OTHER CHARGES OR FEES 1,889,400 131,268 149,575 45,969 (103,606) -69%
TOTAL CHARGES FOR SERVICES 14,604,400 4,185,264 4,237,393 3,768,369 (469,024) -11%
FINES AND FORFEITURES 388,200 106,978 108,845 144,629 35,784 33%
INCOME FROM INVESTMENTS & PROPERTY 8,677,570 2,155,500 2,543,019 3,168,387 625,368 25%
INTERDEPARTMENTAL CHARGES 5,316,999 1,312,286 1,348,175 1,451,929 103,754 8%
OTHER REVENUE SOURCES 301,700 60,739 111,930 194,960 83,030 74%
TRANSFERS IN 0 0 0 0 0 0%
TOTAL GENERAL FUND $243,318,650 $45,090,783 44,861,163 $42,399,194 ($2,461,969) -5%
(1)
(1) Calculated General Fund revenues are 6% below estimates as of September 30, 2025.
GENERAL FUNDREVENUE COMPARISON
Nov. 18, 2025 Item #12 Page 23 of 30
Quarterly Financial Report _______________________________________________________________ 7
Expenditures
Total General Fund expenditures and encumbrances – those funds either spent or committed for specific
expenses – through the month of September 2025 (the first three months of the fiscal year) are $87.5 million,
compared to $81.0 million at the same time last year. The remaining budget available through the fiscal year
ending June 30, 2026, is $176.0 million, or 67%. If funds were spent in the same proportion as the previous year,
the General Fund would have 68% or $172.3 million available. Excluding transfers out, contingencies, and non-
departmental charges, the percentage available on September 30, 2025, is 67%, 1% more than the 66% available
on September 30, 2024.
The fiscal year 2025-26 budget was developed with a focus that invests in the community’s highest priorities,
sets aside money for future infrastructure needs and grows the city’s cash reserves – all while supporting the
continued delivery of top-quality services the Carlsbad community expects. As in recent prior year budgets, the
adopted budget prioritizes the goals in the City Council’s 5-Year Strategic Plan, which was based on input from
thousands of community members and approved in 2022.
While the broader economy continues to present challenges, Carlsbad is well-positioned to adapt. The adopted
budget for fiscal year 2025-26 is a focused, responsible and responsive budget – one that addresses both internal
and community priorities and sustains high-quality services without accelerating any projected financial deficit
over the next five years.
The adopted General Fund budget for fiscal year 2025-26 increased by 1.7% or $3.9 million when compared to
last fiscal year due to:
• Increased personnel costs (increase of $10.9 million or 8%):
o $6.1 million in salaries and wages due to negotiated salary increases was well as the addition of 4.6 full-
time equivalent positions. The new positions included one accountant in the Finance Department, one
analyst in the Human Resources Department with the remaining increases in part-time positions across
various departments.
o $3.3 million in retirement benefits costs.
o $1.1 million in health insurance costs.
o $0.4 million increase in other personnel costs (Medicare, unemployment and disability benefits).
• Increased maintenance and operations costs (increase of $4.7 million or 7%):
o Fiscal year 2021-22 and 2022-23 experienced inflationary increases ranging between 4.1% and 8.3%
which drove the city’s need to contain costs and identify areas for reduction with minimal service level
impacts. Although inflation has declined compared to previous periods, it is still ranging between 2.5%
and 3.8% thus far in fiscal year 2024-25. While it is expected that inflation will continue to slowly
decrease, much uncertainty remains around the Federal Reserve’s actions to adjust target interest rates.
Moreover, the uncertainty around tariff implementation continues to severely impact consumer
confidence. Much of the fiscal year 2025-26 maintenance and operating budget increase is attributable
to inflationary increases, Climate Action Plan initiatives, and fire mitigation efforts.
• Decrease in transfers to other city funds (decrease of $13.8 million or 37%):
o Per Council Policy 91, Long Term General Fund Capital Funding Policy, the city annually budgets 6% of
General Fund revenues as a transfer to the Infrastructure Replacement Fund, General Capital
Construction Fund and the Technology Investment Capital Fund to help fund major new construction,
maintenance and replacement of city infrastructure and facilities and the city’s future technology needs.
For FY 2024-25 this amounted to $14.6 million, split between these three capital project funds (42% to
the Infrastructure Replacement Fund, 42% General Capital Construction Fund and 16% to the
Technology Investment Capital Fund).
• Increase in capital outlay ($2.7 million budgeted compared with $500,000 in the prior year):
o The increase is primarily due to the Fire Department’s request to purchase a second front-line aerial
ladder truck.
Nov. 18, 2025 Item #12 Page 24 of 30
Quarterly Financial Report _______________________________________________________________ 8
CalPERS and pension funding has been and will continue to be a challenge for participating agencies. CalPERS
administers the city’s defined benefit pension plan and costs have been increasing in past years as CalPERS
addresses a structural shortfall in plan assets to cover unfunded liabilities. In support of CalPERS strategies for
plan sustainability and as part of the city’s strategic, long-term approach to financial management, the city
actively manages its unfunded pension liability. Since fiscal year 2016-17, the City Council has approved
additional discretionary payments of $56.4 million to decrease future costs of the city’s unfunded actuarial
liability and strive to achieve a minimum pension-funded ratio of 80% funded, with a target funded ratio range
of 80% to 85%, in accordance with City Council Policy Statement No. 86.
CalPERS’ latest actuarial valuation report (as of June 30, 2024) indicated the city had a combined pension funded
status of 75.7%, increased from the prior year’s status of 73.7%. This increase was predominantly driven by
CalPERS’ fiscal year 2023-24 investment return of 9.3%, above their target of 6.8% and will be reflected in the
city’s required contributions in fiscal year 2025-26.
The City Council approved the establishment of a Public Agencies Post-Employment Benefits Trust (Section 115
Trust) in September 2023. This trust 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 if the assets were kept within the General Fund.
The City Council approved an initial trust contribution of $10 million in September 2023 and a subsequent $7.5
million contribution in October 2024. The City Council approved an additional $7.5 million contribution in
September 2025 to be made into the trust in October 2025.
As of September 30, 2025, the city’s Section 115 Trust had a balance of $21,234,000. Considering the assets held
by CalPERS as well as the assets held in the city’s trust, the combined pension funded status as of September
2025 is 77.9%.
A detailed schedule of General Fund expenditure is provided on the next page.
Nov. 18, 2025 Item #12 Page 25 of 30
Quarterly Financial Report _______________________________________________________________ 9
ADOPTED WORKING
BUDGET BUDGET AMOUNT AVAILABLE %DEPARTMENT DESCRIPTION FY 2025-26 FY 2025-26 (a)COMMITTED (b)BALANCE AVAILABLE (c)
POLICY AND LEADERSHIP GROUP
CITY ATTORNEY $2,366,301 $2,382,301 $741,546 $1,640,755 68.9%
CITY CLERK 1,493,122 1,540,744 392,860 1,147,884 74.5%
CITY COUNCIL 641,472 642,752 147,119 495,633 77.1%
CITY MANAGER 2,070,890 2,158,326 641,998 1,516,328 70.3%
CITY TREASURER 320,948 320,948 79,427 241,521 75.3%
COMMUNICATIONS & ENGAGEMENT 2,119,816 2,188,881 631,767 1,557,114 71.1%
TOTAL POLICY AND LEADERSHIP GROUP 9,012,549 9,233,952 2,634,716 6,599,236 71.5%
ADMINISTRATIVE SERVICES
ADMINISTRATION 889,826 908,086 284,570 623,516 68.7%
FINANCE 6,181,006 6,370,282 1,929,647 4,440,635 69.7%
HUMAN RESOURCES 5,600,534 6,017,881 1,779,964 4,237,917 70.4%
ECONOMIC DEVELOPMENT 963,571 1,129,716 394,623 735,093 65.1%
TOTAL ADMINISTRATIVE SERVICES 13,634,937 14,425,965 4,388,804 10,037,161 69.6%
PUBLIC SAFETY
POLICE 64,138,292 65,383,585 21,260,701 44,122,884 67.5%
FIRE 47,290,269 49,160,526 16,626,985 32,533,541 66.2%
TOTAL PUBLIC SAFETY 111,428,561 114,544,111 37,887,686 76,656,425 66.9%
COMMUNITY SERVICES
COMMUNITY SERVICES ADMINISTRATION 647,219 697,119 240,528 456,591 65.5%
COMMUNITY DEVELOPMENT 11,975,702 13,559,083 4,759,092 8,799,991 64.9%
HOUSING & HOMELESS SERVICES 3,317,186 3,568,367 1,619,577 1,948,790 54.6%
LIBRARY & CULTURAL ARTS 15,662,271 16,094,238 4,742,393 11,351,845 70.5%
PARKS & RECREATION 24,241,322 25,009,125 9,685,429 15,323,696 61.3%
TOTAL COMMUNITY SERVICES 55,843,700 58,927,932 21,047,019 37,880,913 64.3%
PUBLIC WORKS
PUBLIC WORKS ADMINISTRATION 1,488,222 1,489,688 422,551 1,067,137 71.6%
CONSTRUCTION MANAGEMENT & INSPECTIONS 3,250,987 3,295,908 940,001 2,355,907 71.5%
ENVIRONMENTAL SUSTAINABILITY 1,704,367 2,139,568 1,074,032 1,065,536 49.8%
FACILITIES 7,584,723 8,496,680 3,244,597 5,252,083 61.8%
TRANSPORTATION 12,173,662 12,687,366 3,682,289 9,005,077 71.0%
TOTAL PUBLIC WORKS 26,201,961 28,109,210 9,363,470 18,745,740 66.7%
NON-DEPARTMENTAL & CONTINGENCY
(d)OTHER NON-DEPARTMENTAL 2,079,000 2,883,649 303,525 2,580,124 89.5%
VILLAGE TRENCHING 0 5,220,000 0 5,220,000 100.0%
OPERATING TRANSFERS OUT 23,699,119 29,699,119 11,924,781 17,774,338 59.8%
CONTINGENCY 500,000 495,613 0 495,613 100.0%
TOTAL NON-DEPT & CONTINGENCY 26,278,119 38,298,381 12,228,306 26,070,075 68.1%
TOTAL GENERAL FUND $242,399,827 $263,539,551 $87,550,001 $175,989,550 66.8%
(a) Working budget includes the adopted budget, open encumbrances from the end of the prior fiscal year,
approved carry forwards of the prior fiscal year and all other mid-year council approvals.
(b) Actual expenditures on a budgetary basis include encumbrances and exclude non-budgeted items.
(c) Amount available would be 68% if funds were spent in the same proportion as the previous year.
(d) Other non-departmental includes property tax administration fees, assessment district administration, citywide litigation expenses,
and other items not attributed to a specific department.
AS OF 09/30/25
EXPENDITURE STATUS BY DEPARTMENTGENERAL FUND
Nov. 18, 2025 Item #12 Page 26 of 30
Quarterly Financial Report _______________________________________________________________ 10
Council Contingency
The City Council has allocated $500,000 in the General Fund budget for unanticipated emergencies or
unforeseen program needs. Below is a summary of the activity in the City Council’s contingency account to date
for fiscal year 2025-26:
Donations
Carlsbad Municipal Code 2.08.100 authorizes the city manager to accept donations on behalf of the city in an
amount or of value of up to $5,000 per donation. These donations shall be used in accordance with the donor’s
intent or added to the city’s contingency account. Below is a summary listing of all donations, that have been
accepted by the city manager to date during fiscal year 2025-26:
CONTINGENCY ACCOUNT
USE OF FUNDS
EXPLANATION AMOUNT
ADOPTED BUDGET $500,000
USES:
Community Sprit Grant: Carlsbad High School Lancer Day Parade (Council Policy 51)(4,387)
TOTAL USES (4,387)
AVAILABLE BALANCE $495,613
Note 1 - City Council Policy 51 gives authorization to the City Manager, or designee, to approve
Winning Teams and Community Spirit Grants up to $5,000 per grant.
Department Intention Jul. Aug. Sep.Total
Parks & Recreation Leo Carrillo Ranch Cash Donations $400 $442 $788 $1,630
Parks & Recreation Opportunity Grant Donations 639 990 548 2,177
Parks & Recreation Senior Center Cash Donations 2 0 0 2
Parks & Recreation Senior Meals Cash Donations 1,663 1,170 1,579 4,412
Parks & Recreation Senior Transportation Cash Donations 298 219 295 812
Parks & Recreation Teen Program Cash Donations 0 100 599 699
Subtotal - Parks & Recreation $3,002 $2,921 $3,809 $9,732
Library & Cultural Arts Books $0 $0 $500 $500
Library & Cultural Arts Support Library Programs and Services 0 5 32 37
Subtotal - Library & Cultural Arts $0 $5 $532 $537
Fi re Pickleball paddles and pickleballs $0 $250 $0 $250
Subtotal - Fire $0 $250 $0 $250
Total Donations $3,002 $3,176 $4,341 $10,519
Donations Fiscal Year 2025-26
Nov. 18, 2025 Item #12 Page 27 of 30
Quarterly Financial Report _______________________________________________________________ 11
Water Enterprise
Revenues
• Increase in water operating revenues due to increase in user rates effective July 2025,
combined with a 0.4% increase in water volume sales.
• Interest earnings increased due to a 17.5% increase in the yield of the Treasurer’s portfolio
offset by a 23% decrease in the monthly average cash balance.
• The increase in property taxes is primarily due to the annual increase in assesed property
values.
• The increase in fines is mostly from door hanger fees.
• The decrease in other revenues is from lower reimbursed work from other departments.
• The increase in miscellaneous service charges driven by private development requests.
Expenses
• The increase in staffing expenses due to negotiated salary adjustments and annual required
contribution to the city’s unfunded pension liability balance with CalPERS.
• Higher interdepartmental expenses resulted from the annual update of the citywide cost
allocation.
• Purchased water expenses have increased from the prior year due to a 11.57% rate increase in
the variable cost of water purchased from the San Diego County Water Authority (SDCWA)
offset by a 3.43% decrease in the amount of water purchased.
• Outside services decrease from higher asphalt repairs in prior year.
• Miscellanous expense increased from various parts and equipment purchases and higher gas
and electric charges.
• Capital outlay decrease due to higher costs in prior year for generator and compactor purchase.
CHANGE FROM
BUDGET YTD*YTD*YTD 2024-25 TO PERCENT
FY 2025-26 9/30/2024 9/30/2025 YTD 2025-26 CHANGE
REVENUES:
WATER DELIVERY 52,200,000$ 12,200,972$ 13,142,877$ 941,905$ 7.7%
INTEREST 639,500 185,315 180,506 (4,809) -2.6%
MISC. SERVICE CHARGES 335,000 94,429 135,552 41,123 43.5%
PROPERTY TAXES 3,599,336 111,506 123,183 11,677 10.5%
FINES, FORFEITURES & PENALTIES 456,000 108,708 117,448 8,740 8.0%
OTHER REVENUES 494,000 120,933 95,416 (25,517) -21.1%
TOTAL OPERATING REVENUE 57,723,836 12,821,863 13,794,982 973,119 7.6%
EXPENSES:
STAFFING 5,281,930 1,531,814 1,671,572 139,758 9.1%
INTERDEPARTMENTAL SERVICES 3,902,097 868,953 976,093 107,140 12.3%
PURCHASED WATER 37,820,000 8,667,218 9,580,016 912,798 10.5%
MWD/CWA FIXED CHARGES 9,639,000 1,813,047 2,222,085 409,038 22.6%
OUTSIDE SERVICES/MAINTENANCE 2,428,230 146,669 96,332 (50,337) -34.3%
DEPRECIATION/REPLACEMENT 5,300,000 1,275,000 1,325,001 50,001 3.9%
MISCELLANEOUS EXPENSES 1,214,096 105,983 242,154 136,171 128.5%
CAPITAL OUTLAY 43,181 25,111 0 (25,111) -100.0%
TOTAL OPERATING EXPENSES 65,628,534 14,433,795 16,113,253 1,679,458 11.6%
OPERATING INCOME/(LOSS)(7,904,698)$ (1,611,932)$ (2,318,271)$ (706,339)$ 43.8%
*Adjusted to reflect timing differences for water purchases and depreciation.
WATER OPERATIONS FUND
September 30, 2025
11.6%
7.6%
Nov. 18, 2025 Item #12 Page 28 of 30
Quarterly Financial Report _______________________________________________________________ 12
Wastewater Enterprise
Revenues
• Charges for current services are higher than in the prior year due primarily to a 14% rate increase
that went into effect in July 2025.
• Interest earnings increased due to a 17.5% increase in the yield of the Treasurer’s portfolio offset
by a 43.8% decrease in the monthly average cash balance.
• The decrease in other revenues is from lower reimbursed work from other departments.
Expenses
• The increase in staffing expenses is due to negotiated salary adjustments in addition to annual
required contribution to the city’s unfunded pension liability balance with CalPERS, offset by
vacancies.
• Encina operating costs increased from higher staffing and costs for energy and insurance with
costs for chemicals decreasing overall.
CHANGE FROM
BUDGET YTD* YTD*YTD 2024-25 TO PERCENT
FY 2025-26 9/30/2024 9/30/2025 YTD 2025-26 CHANGE
REVENUES:
CHARGES FOR CURRENT SERVICES 32,934,600 6,912,530 7,416,038 503,508 7.3%
INTEREST 275,090 81,137 81,641 504 0.6%
OTHER REVENUES 323,000 92,316 74,766 (17,550) -19.0%
TOTAL OPERATING REVENUE 33,532,690 7,085,983 7,572,445 486,462 6.9%
EXPENSES:
STAFFING 3,538,054 1,041,138 1,052,462 11,324 1.1%
INTERDEPARTMENTAL SERVICES 2,281,172 487,479 570,523 83,044 17.0%
ENCINA PLANT SERVICES 6,423,397 2,712,873 2,655,822 (57,051) -2.1%
OUTSIDE SERVICES/MAINTENANCE 1,499,221 67,623 136,594 68,971 102.0%
DEPRECIATION/REPLACEMENT 8,000,000 2,000,000 2,000,000 0 0.0%
MISCELLANEOUS EXPENSES 1,100,304 107,478 111,814 4,336 4.0%
CAPITAL OUTLAY 110,936 2,287 0 (2,287) -100.0%
TOTAL OPERATING EXPENSES 22,953,084 6,418,878 6,527,215 108,337 1.7%
OPERATING INCOME/LOSS 10,579,606 667,105 1,045,230 378,125 56.7%
* Adjusted to reflect timing differences for Encina quarterly invoices and depreciation.
WASTEWATER OPERATIONS FUND
September 30, 2025
6.9%
1.7%
Nov. 18, 2025 Item #12 Page 29 of 30
Quarterly Financial Report _______________________________________________________________ 13
Golf Course Enterprise
Revenues
•Primary operating revenues at the golf course have remained relatively consistent year over
year, and the increase in rates is offset by a slight decrease in weekday rounds.
•Food and beverage increased from banquets and player’s lounge.
•Pro shop and practice center revenues have all increased in addition to an increase in interest
revenues.
Expenses
•Course and grounds slightly increased driven mostly by landscaping and equipment costs.
•Cost of sales increase correlated to sales in pro shop and focus on lower margins in food and
beverage.
•Depreciation has increased from new assets placed in service for improvements and equipment.
•Miscellaneous expenses slightly increased from hardware and maintenace costs.
•Capital outlay remains steady, reflecting ongoing equipment replacements and repair
expenditures.
CHANGE FROM
BUDGET YTD YTD YTD 2023-24 TO PERCENTFY 2025-26 9/30/2024 9/30/2025 YTD 2025-26 CHANGE
REVENUES:
GOLF COURSE 5,531,000 1,651,595 1,707,500 55,905 3.4%
FOOD & BEVERAGE 4,423,000 1,310,145 1,434,680 124,535 9.5%
PRO SHOP 386,000 104,557 110,912 6,355 6.1%
PRACTICE CENTER 494,000 145,467 175,177 29,710 20.4%
OTHER REVENUES 442,700 95,439 117,061 21,622 22.7%
TOTAL OPERATING REVENUE 11,276,700 3,307,203 3,545,330 238,127 7.2%
EXPENSES:
GENERAL & ADMINISTRATIVE 6,399,000 1,511,805 1,661,723 149,918 9.9%
COURSE & GROUNDS 1,378,000 418,879 443,229 24,350 5.8%
FOOD & BEVERAGE 378,000 105,393 123,362 17,969 17.0%
PRO SHOP 73,000 9,863 21,856 11,993 121.6%
COST OF SALES 1,173,000 315,838 345,539 29,701 9.4%
DEPRECIATION/REPLACEMENT 1,397,000 250,000 349,251 99,251 39.7%
MISCELLANEOUS EXPENSES 400,000 43,002 53,774 10,772 25.0%
CAPITAL OUTLAY 1,205,000 76,213 182,246 106,033 139.1%
TOTAL OPERATING EXPENSES 12,403,000 2,730,993 3,180,980 449,987 16.5%
OPERATING INCOME/LOSS (1,126,300)576,210 364,351 (211,860) -36.8%
GOLF COURSE FUND
September 30, 2025
7.2%
16.5%
Nov. 18, 2025 Item #12 Page 30 of 30
Rachel Maltz, Senior Program Manager, Economic Development
Zach Korach, Finance Director
November 18, 2025
Economic and Financial
Update: Q1 FY 2025-26
TODAY’S PRESENTATION
•Today’s report will cover Fiscal Year 2025-26, First Quarter
o July through September 2025
•Economic update
•Financial update
ITEM 12: ECONOMIC AND FINANCIAL UPDATE
2
CARLSBAD ECONOMY
•Carlsbad’s Gross Regional Product was an estimated
$18.6 billion in 2024
•Carlsbad’s remains the second largest economy in
San Diego County
ITEM 12: ECONOMIC AND FINANCIAL UPDATE
3
ECONOMIC TRENDS
•External factors continue to affect the economy
o Small Business Sentiment on the Rise
o Tariffs and trade policy
o Increasing inflation and cost of goods
o Weakening labor market
o Lack of official data due to the government
shutdown
ITEM 12: ECONOMIC AND FINANCIAL UPDATE
4
ITEM 12: ECONOMIC AND FINANCIAL UPDATE
5
INFLATION
Consumer Price Index for All Urban
Consumers for San Diego-Carlsbad MSA
Consumer Price Index for All Urban
Consumers for Western Region
ITEM 12: ECONOMIC AND FINANCIAL UPDATE
6
0%
1%
2%
3%
4%
5%
6%
Jan Feb Mar Apr May Jun Jul Aug Sep
Carlsbad Unemployment Rate 2022 - 2025
2022 2023 2024 2025
CARLSBAD JOBS
•July through September saw 6,031 unique job
postings
•Jobs were posted by 1,267 different Carlsbad
employers
•Average salary for posted jobs was $53,504
ITEM 12: ECONOMIC AND FINANCIAL UPDATE
7
ITEM 12: ECONOMIC AND FINANCIAL UPDATE
8
DEVELOPMENT & BUSINESS ACTIVITY
•There are an estimated 6,656 current businesses in Carlsbad
•License activity remained consistently strong
9
0
500
1000
1500
2000
2500
3000
Q1 Q2 Q3 Q4 Q1 Q2 Q3
2024 2025
Business Licenses Issued by Quarter
Non-Residential Residential Outside City Total
ITEM 12: ECONOMIC AND FINANCIAL UPDATE
ITEM 12: ECONOMIC AND FINANCIAL UPDATE
10
14.7%
9.6%
4.7%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2023 2024 2025
Carlsbad Commercial Vacancy Rates
Carlsbad Retail Carlsbad Office Carlsbad Industrial
ITEM 12: ECONOMIC AND FINANCIAL UPDATE
11
TOURISM
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
2023 2024 2025
Hotel Average Daily Rate Trend
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
2023 2024 2025
Hotel Occupancy Trend
KEY TAKEAWAYS
•External factors continue to create a chaotic
operating environment for businesses
•Tourism slowed but industry expects a rebound
•The labor market is beginning to favor employers
•Costs continue to be the top concern for businesses
ITEM 12: ECONOMIC AND FINANCIAL UPDATE
12
GENERAL FUND REVENUES
fiscal year to date through first quarter
13
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
Property tax Sales tax Transient
occupancy tax
Other taxes Income from
inv. and prop.
Development
related revenue
Other revenues
FY 2024-25 Actual
FY 2025-26 Expected
FY 2025-26 Actual
GENERAL FUND REVENUES
Revenue category
Actual
FY 2024-25
Actual
FY 2025-26
$
difference
%
difference
Property tax $4.8 $4.8 $0 0%
Sales tax 15.7 12.9 -2.8 -18%
Transient occupancy tax 12.1 12.1 0 0%
Other taxes 2.7 2.7 0 4%
Income from inv. and property 2.6 3.1 0.5 25%
Development related revenue 1.1 1.1 0 0%
Other revenues 5.9 5.7 -0.2 -3%
Total $44.8 $42.4 -$2.5 -5%
fiscal year to date through first quarter (in millions)
14
GENERAL FUND BUDGET
ITEM 12: ECONOMIC AND FINANCIAL UPDATE
•Adopted budget of $242.4 million
•Working budget of $263.5 million
•Available budget remaining of $176.0 million, or 67%
•Includes actual expenditures through September 2025
•Includes open purchase order commitments
15
GENERAL FUND EXPENDITURES & ENCUMBRANCES
fiscal year to date through first quarter
16
GENERAL FUND EXPENDITURES
fiscal year to date through first quarter (in millions)
Category
FY 2025-26
Budget
As of Qtr. 1
FY 2025-26
% of Budget
Spent to Date
OPEN POs
at 9/30/25
Personnel $145.6 $45.5 31%$0.0
Maintenance & operations 77.7 13.6 18%14.6
Transfers out 29.7 11.9 40%0.0
Capital outlay 4.9 0.1 1%1.8
Village Trenching 5.2 0.0 0%0.0
Contingency 0.5 0.0 0%0.0
Total $263.5 $71.1 27%$16.5
17
WATER AND WASTEWATER
ITEM 12: ECONOMIC AND FINANCIAL UPDATE
Compared to prior year through Quarter 1:
•Water revenues are up 8% and expenses
are up 12%
•Wastewater revenues are up 7% and expenses are up 2%
18
GOLF COURSE
ITEM 12: ECONOMIC AND FINANCIAL UPDATE
Compared to prior year through Quarter 1:
•Golf Course revenues are up 7% and
expenses are up 17%
19
NEXT STEPS
•Monitor revenues and expenditures
•Publish economic and financial status reports:
carlsbadca.gov/doingbusiness
carlsbadca.gov/departments/finance/financial-reports
•Present second quarter report and mid-year budget update to City Council in Feb/March 2026
ITEM 12: ECONOMIC AND FINANCIAL UPDATE
20