HomeMy WebLinkAbout2026-04-28; City Council; 05; Proposed Amendments to City Council Policy No. 51 – Policy for Community Activity FundingCA Review CDS
Meeting Date: April 28, 2026
To: Mayor and City Council
From: Geoff Patnoe, City Manager
Staff Contact: Erin Peak, Program Manager, Housing & Homeless Services
erin.peak@carlsbadca.gov, 442-339-2043
Subject: Proposed Amendments to City Council Policy No. 51 – Policy for
Community Activity Funding
Districts: All
Recommended Action
Adopt a resolution amending City Council Policy No. 51 on Community Activity Funding.
Executive Summary
City Council Policy No. 51 establishes the City of Carlsbad’s framework for awarding community
grants, including eligibility criteria, funding sources and approval processes for programs that
support community activities, events and youth teams.
Staff propose amendments to Policy No. 51 to improve access for applicants and increase
administrative efficiency, so applications can be processed quicker.
The main changes include consolidating three programs into a single community enrichment grant
–with the Winning Teams Grant continuing as a separate program – and establishing grant
approval thresholds for the City Manager.
Staff are also recommending the $1 million set aside in the General Fund to generate investment
earnings to fund community grants be increased to $2 million to generate adequate interest to
cover future annual grant awards.
City Council Policy No. 1 requires four affirmative votes of the City Council to change or modify
existing City Council policies.
Explanation & Analysis
Background
The City Council has a long history of funding community activities and programs that help
enhance the quality of life of Carlsbad residents and visitors. To help establish a consistent process
for funding such efforts, the City Council adopted City Council Policy No. 51 in the early 1990s. In
short, the policy established a series of grant programs that could financially assist with their initial
start-up costs.
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There are currently four funding programs available under this City Council policy:
Community activity grants
This grant provides funding for enrichment programs for the community and/or for
physical or other neighborhood enhancements within Carlsbad. Certain programs are not
covered under this grant, such as social service and school-sponsored programs and
projects competing with city services. Funding is available for up to three consecutive
years, followed by a two-year break. Maximum of five total years per organization.
Special events grants
This grant provides funding for temporary, permitted public gatherings held within the city
under Carlsbad Municipal Code Chapter 8.17, Special Events, that are intended to engage
the broader community. There are certain limits to this grant: the city’s financial assistance
cannot exceed 20% of the total gathering cost, a special event permit must be approved
and only one grant is allowed per organizer per year.
Community spirit grants
These grants are available for events that contribute toward a vibrant community by
demonstrating community pride or spirit. The grant may be used only for in-kind city
services. It does not fund operating expenses, ongoing projects or capital costs or provide
any cash assistance. Only one grant per organizer per year is allowed.
Winning team grants
These grants help youth teams by covering part of their travel expenses for national
championship competitions.
The grant program has supported community activities such as the Lancer Day Parade, which
continues to operate today.
Since its original adoption, there have been a few revisions to the policy to clarify, define and
refine its stated purpose. Over time, this structure, with the four programs, created multiple
application processes and varying requirements for similar community-focused activities.
Participation in the city’s grant programs has declined steeply since 2015. For example, in fiscal
year 2009-10, the city issued a high of 13 grant awards totaling $81,200. By FY 2017-18, that
number dropped to three grant awards totaling $15,000.
Since FY 2022-23, the city has been receiving only one or two grants per year across all four
programs, with an average award around $7,500.
Proposed amendments
City staff propose the following amendments to address current challenges. In developing these
recommendations, staff reviewed community grant best practices from other cities and
municipalities nationwide, analyzed historical program data, and incorporated staff experience
administering local community-based funding programs. The proposed amendments are intended
to better align program structure, eligibility criteria and administrative procedures with
demonstrated best practices and identified community needs. The more significant changes are
described below and summarized in Exhibit 2.
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Program consolidation
The first significant change includes consolidating the community activity grants, special
event grants, and community spirit grants into a single community enrichment grant. The
three programs share similar purposes and overlapping eligibility requirements, which has
created confusion for applicants and administrative inefficiencies in managing multiple
programs with comparable goals.
•The new “community enrichment grant” will be available to programs,
neighborhood improvements and events that benefit the community.
•The “winning teams grant” available to youth teams advancing to national or
international championship competitions will continue as a separate program.
The changes preserve all current funding opportunities while making the process clearer
and more efficient for both applicants and staff.
Approval of grant applications
The second area of amendments relate to the administrative efficiency of the program. For
the special event grant, community spirt grant, and winning team grant programs, the
policy authorizes the City Manager to award grants that do not exceed $5,000. Any
application over $5,000 requires City Council approval.
The community activity grant program requires application review by a citizens advisory
committee, a multi-member review panel that has not existed since 2016. The annual
application and review process is an administratively burdensome process, particularly for
the low grant award amounts. Between 2012 and 2016, the most funds awarded in a single
year was $35,140, covering six programs, while the lowest amount awarded was $892 for a
single application. Trying to maintain an active list of volunteers to not only staff the
committee but also be readily available to review applications has been challenging for
staff, especially for such small grants.
To streamline this review process, staff recommend that the citizen advisory committee be
dissolved and the City Council authorize the City Manager to consider and award grants for
up to $10,000. Grant proposals exceeding that amount would require City Council
approval. This change will greatly streamline the review process and allow applications to
be processed more swiftly.
Fiscal Analysis
The City Council provide a dedicated source of funding for the community activity and community
spirit grants through a $1 million commitment in the General Fund it approved in 1999.
Investment earnings from that initial investment have funded those community grants.
As of March 2026, the program has a balance of $1,238,014, which means $238,014 is currently
available for future community enrichment grants.
The special event and winning teams grants have been funded from the City Council’s contingency
account and do not have specific appropriations. They are approved on a case-by-case basis.
In the proposed policy, staff are recommending that grant funding for the community enrichment
and winning teams grants also come from the General Fund’s community enrichment grant
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commitment, thereby eliminating reliance on special appropriations. With this change, however,
staff anticipate that the interest generated annually on the $1 million that was set aside may not
be enough to cover all potential grant awards. As such, staff recommend increasing the amount
committed for grant funding from $1 million to $2 million to have adequate interest to fund
anticipated grant awards. The interest from the $2 million set aside will be the direct source of
funding for the grants awarded under this policy.
If approved, the $2 million set aside in the General Fund Community Enrichment Grant
Commitment account is still considered part of the reserve balance of the General Fund and
available for the City Council to use for another purpose in the future, if so decided. As of March
2026, the General Fund Reserve is estimated at approximately $150 million. The reserve
represents approximately 62% of the 2025-26 Fiscal Year General Fund Operating Budget, well
above the target balance of 40%.
Next Steps
Staff will finalize and implement the amended City Council Policy No. 51, including updating
application materials, internal procedures and the city’s website to inform the community about
the new community enrichment grant program. Staff will also begin administering the revised
program structure — including consolidating existing grant programs and processing applications
under the new guidelines — and incorporate the increased General Fund set-aside into future
budget and grant funding processes.
Environmental Evaluation
The proposed action is not a “project” as defined by California Environmental Quality Act, or
CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require
environmental review under CEQA Guidelines Section 15060(c)(3) because issuing grants is a
government fiscal activity and does not in itself involve any commitment to any specific project
which may result in a potentially significant physical impact on the environment.
Exhibits
1.City Council resolution
2.Proposed changes to City Council Policy No. 51
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Exhibit 1 RESOLUTION NO. 2026-081 .
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AMENDING CITY COUNCIL POLICY NO. 51 ON COMMUNITY
ACTIVITY FUNDING
WHEREAS, the City of Carlsbad has a strong commitment to support community programs,
events, neighborhood improvements, and youth athletic teams that enhance quality of life and benefit
the community; and
WHEREAS, the City Council on Dec. 4, 2012, adopted Council Policy No. 51, which established
the policy and detailed processing procedures for community activity funding; and
WHEREAS, the proposed amendments to Council Policy No. 51 will consolidate three programs
into a single Community Enrichment Grant, with the Winning Teams Grant continuing as a separate
program; and
WHEREAS, the City Council finds that delegating approval of compliant community activity
funding agreements to the City Manager will streamline the review process and allow for timely
approval.
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.This action does not constitute a project within the meaning of the California
Environmental Quality Act, or CEQA, under Public Resources Code section 21065 and
CEQA Guidelines Section 15378(b)(4) and does not require environmental review under
CEQA Guidelines Section 15060(c)(3) because issuing grants is a government fiscal
activity and does not in itself involve any commitment to any specific project which may
result in a potentially significant physical impact on the environment.
3.That revisions to City Council Policy No. 51 on community activity funding are hereby
adopted as reflected in Attachment A to this resolution.
4.That the City Manager, or designee, is authorized to designate an additional $1,000,000
from the fund balance of the City’s General Fund to the General Fund’s Community
Enrichment Grant Commitment account for the funding of grants awarded under City
Council Policy No. 51.
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5.That the City Manager, or designee, is authorized to annually appropriate the estimated
interest for the year to the General Fund’s Community Enrichment Grant Commitment
account for the funding of grants awarded under City Council Policy No. 51.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City
of Carlsbad on the 28th day of April, 2026, 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)
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Policy No.
Date Issued
Resolution No.
Attachment A
Subject: Community Activity Funding Policy
Purpose
To establish a consistent process of providing financial support for community and
neighborhood-based programs, events, and activities that help enhance the quality of life of
Carlsbad residents and visitors.
Background
The City Council has a long history of funding community activities and programs that help
enhance the quality of life of those who live, work and play in the City of Carlsbad. To help
establish a consistent process for funding such efforts, the City Council adopted Council Policy
51 in the early 1990s. In short, the policy established a series of grants that could financially
assist with the initial "start-up costs" for qualifying community-initiated programs. Overtime,
these grants have helped fund programs and activities from community events and
neighborhood improvements to youth teams advancing to national or international
championship competitions.
Statement of policy
To establish a grant program and process that awards funding and/or in-kind city services to
qualifying applicants who require one-time assistance in establishing their community-initiated
program, event, or activity.
Procedure
The City of Carlsbad offers two types of grant programs under this policy: Community
Enrichment Grant and the Winning Teams Grant.
A.COMMUNITY ENRICHMENT GRANT PROGRAM
The Community Enrichment Grant provides financial and in-kind assistance to eligible nonprofit
and volunteer organizations for community programs, events, and neighborhood improvement
activities that enhance quality of life, foster community pride, and provide a direct public
benefit to the City of Carlsbad community.
1.Definitions
a.Programs: Structured activities or projects delivered over time that provide direct
services, enrichment, or neighborhood improvements to the community.
b.Events: Time-specific, single or occasional gatherings (e.g., festivals, parades, or
celebrations) intended to engage the public for a limited duration.
c.Project: One-time activity or neighborhood-based improvement with a clear scope and
timeline that provides a direct public benefit but does not include capital improvement
projects or ongoing operational support.
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51
April 28, 2026
2026-081
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City Council Policy Statement
April 28, 2026
Page 2
2.Eligibility
To be eligible for funding under a Community Enrichment Grant, applicants must meet the
following criteria.
a.The application is filed by, and the program administered by a tax-exempt, nonprofit
organization such as a 501(c)(3) or 501(c)(6), or organized by an all-volunteer group.
b.Evidence that the proposed program, project, or event will help enhance quality of life,
foster community pride, and bring residents together.
c.Evidence that the proposed program, project, or event will be located in, or provide
direct benefit to the city.
d.Secure approval of a city Special Event Permit pursuant to Carlsbad Municipal Code
Chapter 8.17, if the program, project, or event impacts public property or facilities. This
is required prior to applying for the grant.
e.Commitment that the program, project, or event are open to the public, non-
discriminatory, and not commercial, political, or religious in nature.
3.Eligible Uses of Funds
a.Event and program coordination defined as costs associated with planning and
implementation, including limited staff or contractor time, marketing and advertising,
venue rental, and catering (excluding alcohol).
b.Neighborhood improvement projects or enrichment programs, such as community
clean-up efforts, landscaping or beautification activities, minor enhancements to
existing community spaces, or community-based programming that encourages
neighborhood engagement.
c.Start-up costs to initiate new programs, events, or projects that provide community
activities or enhancements within Carlsbad.
d.Fundraising events if hosted by an all-volunteer, Carlsbad-based organization. Funds
may used only for direct event costs (no staff pay except short-term contractors), and
proceeds benefit a Carlsbad-based organization with a community-wide impact (no
direct cash gifts to individuals).
e.City required permitting or facility use fees associated with the proposed program,
project, or event.
f.Other uses not listed may be considered if requested in writing as part of the grant
application and approved by the City Manager following review for consistency with this
Policy.
g.Grant funds may not be used for ongoing operating costs, permanent program support,
capital projects, or staff salaries.
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City Council Policy Statement
April 28, 2026
Page 3
h.Grant funds may not be used when in combination with other city funding or city
donated services, including funding from Community Development Block Grant
program.
4.Funding Amounts
a. Programs, Events & Projects: May request funding for up to 100% of eligible costs, up to
$40,000, subject to available annual budget of $100,000, or other amount as may be
appropriated by the City Council
b.Events: Funding is limited to 20% of total direct event costs (excluding volunteer time,
and applicant operational expenses). In-kind city support may be awarded in lieu of cash
assistance, subject to the same limits.
5.Grant Terms
a.Funding available for up to three consecutive years, followed by a two year break before
reapplying, with a maximum of five (5) total years of funding per organization
b.Signature Community Events – Events designated by the City Manager as signature
events (e.g., citywide parades, annual community traditions) may apply annually with no
term limits, subject to yearly application and review
c.An organization may receive no more than one Community Enrichment Grant award per
fiscal year.
6.Administration
a.Applications must be on a city approved form and submitted at least 60 days prior to
the start date of the proposed program, project, or event.
b.Grants will be provided on a reimbursement basis only and require submission of
receipts and proof of payment.
c.The City Manager is authorized to approve cash assistance or value of in-kind city
services up to $10,000, and appropriate said funds from the General Fund’s Community
Enrichment Grant Commitment account. The City Council must approve cash assistance
or in-kind city services for grants in excess of $10,000.
d.Staff will review requests for “other uses” and forward recommendations to the City
Manager for consideration and decision.
B.WINNING TEAMS GRANT PROGRAM
The Winning Teams Grant program provides financial assistance to help offset a portion of
documented travel-related expenses for qualifying Carlsbad youth athletic teams that have
advanced to national or international championship-level competitions.
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City Council Policy Statement
April 28, 2026
Page 4
1.Eligibility
To be eligible for funding under a Winning Teams Grant Program, applicants must meet the
following criteria.
a.Participating athletes must be 18 years of age or under.
b.Requests must be submitted prior to the date of the competition.
c.At least 90% of team participants must be Carlsbad residents, or the school represented
must be physically located within the City of Carlsbad.
2.Funding
a.Covers up to 20% of a maximum of $10,000 for documented travel, lodging, meals, and
registration costs for participants and coaches at national or international championship
competitions
b.Funding is limited to one award per team per qualifying championship competition.
3.Administration
a.The City Manager is authorized to approve cash assistance up to $10,000 and
appropriate said funds from the General Fund’s Community Enrichment Grant
Commitment account.
b.Requests may be made year-round.
c.Grants are reimbursement-based and require receipts and proof of payment
C.APPROPRIATIONS
The City Council approved a set-aside of $2M that was deposited into the General Fund’s
Community Enrichment Grant Commitment account. The interest from the set-aside shall be
the direct source of funding for the Community Enrichment Grant and Winning Teams Grant
programs. The City Council retains discretion to modify the set-aside amount or available
funding levels as necessary without the need to amend this Policy.
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CP 51 - Community Activity Grants
SUMMARY OF CHANGES
The city currently offers four grant programs: Community Activity, Community Spirit, Special
Event, and Winning Teams. Three of these programs share similar purposes and overlapping
eligibility requirements, which has created confusion for applicants and administrative
inefficiencies in managing multiple programs with comparable goals.
In addition, the current Community Activity Grant process requires review by a Citizens
Advisory Committee and a multi-member review panel that no longer exist, making it
administratively burdensome and impractical to distribute funds under the existing framework.
To address this, staff recommends consolidating the Community Activity, Community Spirit, and
Special Event Grants into a single, streamlined program: the Community Enrichment Grant. The
Winning Teams Grant will remain a separate program; the only change is an increased
maximum award of $10,000 to align administration with the Community Enrichment Grant.
Following this consolidation, the City will offer two grant programs:
1.Community Enrichment Grant – For programs, neighborhood improvements, and events
that benefit the community.
2.Winning Teams Grant – For youth teams advancing to national or international
championship competitions.
This change preserves all current funding opportunities while making the process clearer and
more efficient for both applicants and staff.
Current Grant Programs Proposed Combined Grant Program
Community Activity Grants
• Support enrichment programs and
neighborhood improvements.
• Not eligible: social service programs,
school-sponsored programs, or projects
competing with City services.
• Funding up to 3 consecutive years,
followed by a 2-year break. Maximum of
5 total years per organization.
Community Spirit Grants
• Support events that reflect community
pride and neighbors helping neighbors.
•Grants to be utilized for in-kind city
services only, ineligible costs include
operations, ongoing projects and capital
Community Enrichment Grants
•Support community programs, activities,
neighborhood improvements, and events that
enhance quality of life, foster community pride,
and are open and accessible to the broader
community.
•Programs & Neighborhood Improvements –
May request up to 100% of eligible costs, subject
to available budget.
• Events – Cash funding is limited to 20% of total
direct event costs.
• Funding is available for up to 3 consecutive
years, followed by a 2-year break. Maximum of 5
total years of funding per organization.
•Signature Community Events – Events
designated by the City Manager as signature
Exhibit 2
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CP 51 - Community Activity Grants
costs, no cash assistance available under
this grant program.
• One grant per organizer per year.
Special Event Grants
• Support one-time events of citywide
interest.
• One grant per organization per year.
• Cash assistance shall not exceed 20%:
up to 3 years; in-kind up to 5 years.
• Requires approval of a Special Event
application.
events (e.g., citywide parades, annual community
traditions) may apply annually with no term
limits, subject to yearly application and review.
• Only one grant per organization per year.
• In-kind support for events may be considered in
lieu of cash assistance.
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