HomeMy WebLinkAbout2026-06-16; City Council; Resolution 2026-123Exhibit 10 RESOLUTION NO. 2026-123
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, REDUCING THE CITY’S ASSET REPLACEMENT RESERVE BY
$400,000 AND INCREASING THE UNASSIGNED FUND BALANCE IN THE
GENERAL FUND BY THE SAME AMOUNT AS OF JULY 1, 2026
WHEREAS, the City Council of the City of Carlsbad, California, commits to maintaining its large
machinery and equipment inventory; and
WHEREAS, the city’s General Fund is responsible for approximately $60 million worth of
machinery and equipment with useful lives ranging from 5 to 20 years; and
WHEREAS, the city designated $7,600,000 from the city’s unassigned fund balance in the
General Fund as of March 24, 2026, to the Asset Replacement Reserve in the General Fund; and
WHEREAS, the Fire Department requested to use $235,000 of the Asset Replacement Reserve
in accordance with the schedule in the Fiscal Year 2026-27 Operating Budget; and
WHEREAS, the city’s General Fund is now projected to need approximately $7,200,000 over the
next ten fiscal years to replace machinery and equipment that are expected to reach the end of their
respective useful lives; and
WHEREAS, with the reduction of $400,000 in the Asset Replacement Reserve, as of June 30,
2027, the General Fund Reserve would have a projected reserve ratio of 58% and $45 million in excess
of the 40% or $100 million required by City Council Policy No. 74 – General Fund Reserve Guidelines;
and
WHEREAS, the Asset Replacement Reserve will continue to be evaluated and adjusted on an
annual basis based upon the General Fund’s most recent 10-year asset replacement schedule.
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. That 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) as it is a
government fiscal activity and does not involve any commitment to any specific project
which may result in a potentially significant physical impact on the environment. The
June 16, 2026 Item #6 Page 369 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26
activity or projects for which this budget is intended to fund may require preparation of
an environmental document in accordance with CEQA and the CEQA Guidelines.
3. That the Asset Replacement Reserve in the General Fund will be reduced by $400,000
for a new balance of $7,200,000 as of July 1, 2026, which results in an increase of
$400,000 to the city’s unassigned fund balance in the General Fund.
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of
Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of Directors of the
Carlsbad Public Financing Authority, the City of Carlsbad Community Development Commission, and
the City Council of the City of Carlsbad as Successor Agency to the Carlsbad Redevelopment
Agency held on the 16th day of June, 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)
June 16, 2026 Item #6 Page 370 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26