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HomeMy WebLinkAbout; ; 2024-2025 Operating Budget, Capital Improvement Program and Strategic Digital Transformation Investment Program; 2024-06-30BUDGET F Y 2 0 2 4 -2 5 Operating Budget Capital Improvement Program Strategic Digital Transformation Investment Program Budget preparation team Finance team Zach Korach, Finance Director Brigid Drury, Finance Manager Jeremy Bates, Senior Management Analyst Bridget Desmarais, Management Analyst Leadership team Scott Chadwick, City Manager Cindie McMahon, City Attorney Geoff Patnoe, Assistant City Manager Gary Barberio, Deputy City Manager, Community Services Paz Gomez, Deputy City Manager, Public Works Laura Rocha, Deputy City Manager, Administrative Services Christie Calderwood, Chief, Police Department Mike Calderwood, Chief, Fire Department Maria Callander, Director, Information Technology Sheila Cobian, Director, Legislative and Constituent Services Amanda Flesse, Director, Utilities Tom Frank, Director, Transportation Jason Haber, Director, Intergovernmental Affairs, Office of the City Manager Zach Korach, Director, Finance Kyle Lancaster, Director, Parks & Recreation Faviola Medina, Director, Office of the City Clerk Mandy Mills, Director, Housing & Homeless Services Jeff Murphy, Director, Community Development Kristina Ray, Director, Communication & Engagement Suzanne Smithson, Director, Library & Cultural Arts Judy Von Kalinowski, Director, Human Resources James Wood, Jr., Director, Environmental Sustainability Department budget preparers & advisors Shoshana Aguilar, Utilities Rosario Aranda, Housing & Homeless Services Sue Armstrong, Communication & Engagement Conrad Avila, Finance Deborah Baird, Fire Department Mariel Cairns, Utilities Fiona Everett, Library & Cultural Arts Shawn Gaskari, Fleet & Facilities Brent Gerber, Information Technology Kayla Hanner, Finance Lindsey Hansen, Communication & Engagement Emily Hasegawa, Construction Mgmt. & Inspection Chad Kantner, Parks & Recreation Esther Lan, Transportation John Maashoff, Fleet & Facilities Jennie Marinov, Fire Department Debbie Jo McCool, Library & Cultural Arts Roxanne Muhlmeister, Finance Bradley Northup, Fleet & Facilities Robyn Nuschy, Office of the City Attorney Debbie Porter, Human Resources Megan Powers, Environmental Sustainability Sarah Reiswig, Risk Management Kim Riboni, Finance Silvano Rodriguez, Human Resources Jason Rosado, Finance Laureen Ryan, Community Development Sarah Sanders, Risk Management Katie Schroeder, Office of the City Treasurer Amanda Simpson, Police Department Craddock Stropes, Public Works Administration David van Gilluwe, Information Technology Marsha Weeks, Parks & Recreation TABLE OF CONTENTS INTRODUCTION City Manager’s transmittal letter .................................................................................................A-1 Readers guide ...............................................................................................................................A-5 Budget process .............................................................................................................................A-6 5-Year Strategic Plan ....................................................................................................................A-8 Annual workplan ..........................................................................................................................A-9 Community engagement ..............................................................................................................A-11 About Carlsbad .............................................................................................................................A-13 Organization chart ........................................................................................................................A-22 Fiscal issues & financial management ..........................................................................................A-23 Financial management policies ....................................................................................................A-26 Appropriation limit .......................................................................................................................A-31 Debt management .......................................................................................................................A-32 Basis of budgeting ........................................................................................................................A-34 Budgetary fund structure .............................................................................................................A-35 Budget awards .............................................................................................................................A-37 OPERATING BUDGET Overview ......................................................................................................................................B-1 Revenue .......................................................................................................................................B-2 Expenditures ................................................................................................................................B-13 Personnel allocations ...................................................................................................................B-22 Schedule of projected fund balances ...........................................................................................B-23 Schedule of revenue estimates ....................................................................................................B-25 Schedule of budget expenditures ................................................................................................B-31 PUBLIC SAFETY Summary ......................................................................................................................................C-1 Organization chart ........................................................................................................................C-2 Fire Department ...........................................................................................................................C-3 Police Department .......................................................................................................................C-10 PUBLIC WORKS Summary ......................................................................................................................................D-1 Organization chart ........................................................................................................................D-2 Public Works Administration ........................................................................................................D-3 Construction Management & Inspection .....................................................................................D-5 Environmental Sustainability .......................................................................................................D-7 Fleet & Facilities ...........................................................................................................................D-14 Transportation .............................................................................................................................D-19 Utilities .........................................................................................................................................D-26 COMMUNITY SERVICES Summary ......................................................................................................................................E-1 Organization chart ........................................................................................................................E-2 Community Services Administration ............................................................................................E-3 Community Development ............................................................................................................E-5 Housing & Homeless Services ......................................................................................................E-16 Library & Cultural Arts ..................................................................................................................E-26 Parks & Recreation .......................................................................................................................E-35 ADMINISTRATIVE SERVICES Summary ......................................................................................................................................F-1 Organization chart ........................................................................................................................F-2 Administrative Services Administration .......................................................................................F-3 Economic Development ...............................................................................................................F-5 Finance .........................................................................................................................................F-7 Human Resources ........................................................................................................................F-9 Information Technology ...............................................................................................................F-16 Miscellaneous Non-Departmental ...............................................................................................F-18 POLICY & LEADERSHIP Summary ......................................................................................................................................G-1 Organization chart ........................................................................................................................G-2 Office of the City Council ..............................................................................................................G-3 Office of the City Treasurer ..........................................................................................................G-5 Office of the City Manager ...........................................................................................................G-7 Office of the City Attorney ...........................................................................................................G-9 Office of the City Clerk .................................................................................................................G-11 Communication & Engagement ...................................................................................................G-13 STRATEGIC DIGITAL TRANSFORMATION INVESTMENT PROGRAM Overview ......................................................................................................................................H-1 Investing in digital transformation ...............................................................................................H-2 Project evaluation ........................................................................................................................H-2 Strategic Digital Transformation Investment Program projects ..................................................H-4 Estimated total appropriations by goal ........................................................................................H-6 Projects to pursue communitywide digital transformation .........................................................H-8 Projects to build capacity for data-driven decision making .........................................................H-15 Projects to foster a vibrant civic engagement culture .................................................................H-19 Projects to enhance accessibility and transparency ....................................................................H-19 Projects to promote security and sustainability through connectivity ........................................H-20 Minor projects ..............................................................................................................................H-24 Future projects .............................................................................................................................H-25 Detail five-year schedule of projects by Connected Carlsbad goal ..............................................H-27 Detail five-year schedule of projects by fund ..............................................................................H-28 Project funding sources ................................................................................................................H-29 Projected fund balances ...............................................................................................................H-29 Revenue projections schedule .....................................................................................................H-30 Budget expenditure schedule ......................................................................................................H-30 Project estimated operational requirements ...............................................................................H-31 Fiscal year 2024-25 roadmap .......................................................................................................H-32 Five-year roadmap .......................................................................................................................H-33 CAPITAL IMPROVEMENT PROGRAM Overview ......................................................................................................................................I-1 Investing in our quality of life .......................................................................................................I-1 Project evaluation ........................................................................................................................I-2 Fiscal year 2024-25 appropriations ..............................................................................................I-3 New capital improvement projects ..............................................................................................I-6 Capital Improvement Program revenues .....................................................................................I-8 Future growth and development .................................................................................................I-9 Future projects .............................................................................................................................I-10 Calculation of future fees .............................................................................................................I-11 Unfunded projects .......................................................................................................................I-11 Projected fund balances for fiscal year 2023-24 ..........................................................................I-12 Projected fund balances for fiscal year 2024-25 ..........................................................................I-13 Revenue projections schedule .....................................................................................................I-14 Budget expenditure schedule ......................................................................................................I-15 Project estimated operational requirements ...............................................................................I-16 Five-year Capital Improvement Program Strategic Plan projects ................................................I-17 Five-year Capital Improvement Program critical need projects ..................................................I-19 Five-year Capital Improvement Program maintenance projects .................................................I-20 Five-year Capital Improvement Program enterprise projects......................................................I-22 Substantially complete (closeout) projects ..................................................................................I-24 Project accounting .......................................................................................................................I-25 Program adjustments ...................................................................................................................I-25 Requested appropriation summary .............................................................................................I-26 Capital Improvement Program 15-year forecast by fund ............................................................I-27 Glossary of capital project funding sources .................................................................................I-39 APPENDICES Planned major capital outlay items fiscal year 2024-25 ..............................................................J-1 General Fund asset replacement schedule ..................................................................................J-2 Fund classifications and descriptions ...........................................................................................J-3 Department/fund relationship .....................................................................................................J-9 Glossary ........................................................................................................................................J-11 Acronyms .....................................................................................................................................J-14 Budget communications ..............................................................................................................J-17 General Fund forecast ..................................................................................................................J-20 Resolutions adopting the budget .................................................................................................J-41 A-1 Dear City Council: Carlsbad is starting the new fiscal year with healthy revenues, increased cash reserves and among the lowest pension debts in the San Diego region, all while maintaining a high level of service for the community. Arriving at this strong position is the result of five years of collaborative work that has included important City Council policy decisions and a multi- pronged strategy to reduce costs while preserving core services. Although our efforts have produced results, more work lies ahead. Budget overview Achieving a structurally sound General Fund budget, where projected revenues over the next five years are expected to cover projected spending, has become more challenging in recent years due to several factors. We anticipated some, like our transition from a time of significant growth to a period focused on maintenance. Others, such as a global pandemic and state housing crisis, have required the city to quickly pivot and adapt. Facing a projected General Fund structural deficit, city departments redoubled their efforts to reduce costs. The city also sought additional grant opportunities, securing $16 million in just two years. After generating savings in the city’s maintenance and operations budgets, city staff applied the same criteria to evaluate city positions. The fiscal year 2024-25 budget eliminates 12 full time equivalent positions, for a total reduction of 24 full time equivalent positions in the past two years. Reducing staff is always a very difficult decision and comes only after weighing all the options very carefully. Our focus was on preserving core city services and, where possible, eliminating vacant positions. Due to these combined efforts, the City Council’s approval of the fiscal year 2024-25 budget eliminates the structural deficit in our five-year financial forecast. Pension strategy Although pension funding is an ongoing concern for all cities, Carlsbad has one of the strongest pension positions in the region, thanks to forward thinking by the City Council. In A-2 fact, looking at cities participating in the CalPERS system, we have the smallest unfunded liability percentage among cities that have not borrowed money to pay for their pensions. The City Council has passed two policies in recent years to manage pension costs: one sets a goal of keeping the city’s pension 80% funded; the other established a separate pension trust account where the city can manage how funds are invested. The city is currently on track to reach the 80% goal by fiscal year 2028-29. These changes, along with the especially strong performance of our three largest sources of General Fund revenue, will allow us to continue with a thoughtful and strategic approach to securing the city’s future financial sustainability. Focusing on community priorities Following the City Council’s 5-Year Strategic Plan has also improved the efficiency of the city organization, while prioritizing resources on the issues most important to the community. These are captured in the following five goals: • Maintain Carlsbad’s unique community character • Foster a healthy economy • Prioritize the safety and well-being of the community • Protect the environment and natural resources • Be a model for effective and efficient local government By setting five-year goals, the city is making focused progress on longer term initiatives. When goals were set annually, the time and resources invested in a specific initiative could be lost if different goals were selected the following year. Today, our organization is focused on these longer-term goals, while keeping our “Be Brilliant at the Basics” philosophy top of mind. After all, it’s those everyday services that keep our community clean, safe and well- maintained, so residents can enjoy everything Carlsbad has to offer. The fiscal year 2024-25 budget includes several projects and initiatives to continue the plan’s implementation. Capital Improvement Program The City of Carlsbad Capital Improvement Program reflects the city’s ongoing commitment to maintaining the highest standards of quality facilities for our community today and in the future. To increase transparency and more actively involve the City Council in how projects are prioritized, the city made changes to the Capital Improvement Program process for fiscal year 2024-25, including: • Release funding only when each project phase is complete, freeing up money that was previously allocated to projects that were early in the planning process or not needed until a future date. A-3 • Provide more accurate cost estimates by applying an automatic annual escalator and updating the cost estimates as each phase is completed and more information is known about the scope, design and other factors affecting cost. • Increase opportunities for the City Council to evaluate projects in light of current needs and priorities. • Increase transparency of funding options and the decision-making process. • Continue to comply with the Government Finance Officers Association, San Diego Association of Governments and other reporting requirements by showing where funds are allocated for future spending. The fiscal year 2024-25 Capital Improvement Program focuses on 197 projects planned over the next five years. Approximately $15.6 million in new appropriations fund the continuation of existing projects as well as 13 new projects. New asset replacement reserve Just as the city plans ahead for major Capital Improvement Projects, the City Council approved a new General Fund asset replacement reserve, established with the fiscal year 2024-25 budget. This reserve will manage and fund the replacement of the city’s large machinery and equipment, which represents about $60 million of fixed assets, separately from the General Fund reserve. Staff projects about $17.5 million will be needed to cover replacement costs in the next 10 years. The reserve will help the city prioritize and strategically plan for these costs without affecting the General Fund Reserve or annual budget surpluses. Strategic Digital Transformation Investment Program Over the years, the city’s use of technology has become as critical to city operations as traditional infrastructure. The city’s Strategic Digital Transformation Investment Program increases efficiencies, security, transparency and data-driven decision making through investments in the city’s digital infrastructure. In total, 41 continuing and new projects are planned over the next five years, with $6.2 million appropriated for fiscal year 2024-25. General Fund reserve The City Council has a policy to maintain the equivalent of 40% of the annual General Fund operating budget in a reserve account. This helps ensure that during emergencies and economic downturns the city can continue to meet the community’s needs. In June 2025, the city is projected to have $131.5 million in reserves, or 55% of the annual General Fund operating budget. Looking to the future The city is starting fiscal year 2024-25 in a strong position, but economic uncertainty will likely remain. An increasing population due to new state housing laws, evolving community needs, new state and federal regulations and other pressures remain top of mind. A-4 I would like to thank the City Council for its prudent stewardship and guidance as Carlsbad navigates this time of change. Thanks to your leadership, Carlsbad can continue to set the standard for effective and efficient local government, while enhancing the lives of those we serve. Sincerely, Scott Chadwick City Manager A-5 INTRODUCTION The annual budget is the most significant expression of how City Council policies are translated into daily operations. In this document, you will see where the city gets the money it uses to carry out its mission and how that money will be spent during the fiscal year that begins July 1, 2024. More than a spending plan, the annual budget is also intended to provide a window into the complex and dynamic economic environment within which your local government operates. As such, this document reviews local, state and national trends affecting city finances, as well as demographic information, regulations and policies that affect how, when and where the city invests resources. READERS GUIDE Some of the information included in this budget document is required by state law. Other details are provided for context and transparency. More than anything, city staff have prepared this budget to serve as a practical guide and tool for ensuring the City of Carlsbad lives up to its standard of being the best run government, period. The following information is included in the four main sections of the budget: Introduction • Information about the city, its size, its demographics, the city government structure and other background • How the budget is prepared and approved • Input city staff received from the public and how it has been incorporated into city spending priorities • The economic and fiscal issues facing the city • Financial management policies Operating Budget • An overview of where the city gets the money (“revenue”) to fund daily operations • A big picture summary of city staffing levels, spending broken out into different categories and other aggregate information • Detailed budgets for all city functional areas Strategic Digital Transformation Investment Program • Major city digital transformation projects (online permitting, records management system, police computer aided dispatch system, hardware and software, security strategy, etc.) included in this year’s budget • How projects are identified and prioritized • Sources of funding and long-term plan A-6 Capital Improvement Program • Major city construction projects (roads, water and wastewater systems, parks, etc.) included in this year’s budget • How projects are identified and prioritized • Sources of funding and long-term plan BUDGET PROCESS The City Council sets the overall policy direction for the City of Carlsbad and helps staff prioritize programs, projects and services to support that direction. Public input plays a critical role in setting both the long-range policy direction of the city and decisions about day-to-day spending. The city operates on a fiscal year that begins July 1. City staff in all departments prepare individual budgets for their functional areas. These budgets are then combined into an overall city budget that is presented to the City Council each spring for review and input. The City Council has the authority to approve the annual budget and may amend it during the year if needed. The legal level of budgetary control is at the fund level, which means spending in each different type of fund may not exceed the budgeted amount without City Council approval. Additional information regarding the budgetary controls can be found in the resolution approving the annual operating budget in the appendices. December Finance Department staff hold meetings with departments to discuss budget goals and timelines for the upcoming fiscal year. Finance Department staff also prepare base budgets for each department during this time based on prior fiscal year appropriations. A-7 January City staff hold a budget kick-off meeting to discuss priorities for the upcoming budget cycle, any changes to the budget process compared to last fiscal year, and the calendar for submission of required budget forms. Departments begin developing their budget submissions based on the base budgets provided by the Finance Department and their needs and budget guidelines for the new fiscal year. February Departments provide their budget submissions to the Finance Department. These submissions include any requests departments make to amend their budgets, along with general information about existing personnel allocations and budget for professional and outside services. Finance Department staff review submissions, analyze requested budgets and work with departments to make any necessary changes. March Departments present their budgets, including significant changes and requests for new funding, to the City Manager. Departments submit estimates for current fiscal year-end revenues and expenditures to Finance. April Based on meetings with individual departments, the City Manager decides the budget that will move forward for City Council consideration. Finance Department staff prepare the preliminary budget document. May Staff present the preliminary budget to the City Council for consideration. After this public meeting, staff amends the preliminary budget document for any City Council-directed changes. City staff also hold a public budget workshop to discuss the preliminary budget with the community and answer questions about it. June At a public hearing, staff present the final proposed budget to the City Council for consideration and adoption. A-8 5 -YEAR STRATEGIC PLAN The City of Carlsbad is guided by a 5-Year Strategic Plan, which was adopted by the City Council in 2022. The plan serves as a road map during the budget process by identifying specific, measurable objectives to be achieved during the five-year timeframe. The plan was developed by working closely with the community to identify a vision for the Carlsbad community, strategic plan goals and project priorities. The community will continue to be engaged in refining specific projects and initiatives within the strategic plan as it is implemented. This input is also incorporated into the annual budget process. 2023-2027 Strategic goals The 5-Year Strategic Plan includes high level goals, objectives, projects and service commitments that support the Carlsbad Community Vision. Core services The city fulfills its purpose and supports the 5-Year Strategic Plan goals every day by providing core services and functions of municipal government at a very high level of quality. From a resource perspective, these ongoing services represent the vast majority of the city’s annual budget. A-9 ANNUAL WORKPLAN Specific work plans and resource allocations to support the 5-Year Strategic Plan are developed each year and included in each department’s budget. Some of the key initiatives, projects and services that support strategic plan goals in the fiscal year 2024-25 budget include: • Continue work on an updated growth management plan • Invest in projects that make the Village and Barrio more walkable • Complete a new community garden at Stagecoach Community Park, the first in south Carlsbad • Pursue grant funding with SANDAG and NCTD to further the design of a project to lower the railroad tracks between Agua Hedionda and Buena Vista lagoons • Complete design work for Monroe Street Pool Renovation/Replacement project • Complete the conceptual design for Robertson Ranch Park • Upgrade the audio-visual technology in the Schulman Auditorium at Dove Library, which hosts free concerts, author events and films • Provide high quality library services, programs and events that bring people together and support lifelong learning • Continue traffic safety improvements citywide • Implement the city’s Homelessness Action Plan to help address homelessness in Carlsbad and its effects on the community • Continue a high level of public safety services including a full-service Police Department, Fire Department and emergency medical services, a park ranger program and city lifeguards • Seek property for permanent Fire Station 7 • Continue to foster strong relationships between community members and the Police Department through the Community-Police Engagement Commission • Complete an update to the city’s Climate Action Plan • Build additional EV charging stations in the Village • Manage the city’s 6,200 acres of habitat preserves • Continue to implement new sustainable materials management programs, including organics recycling and reducing use of single use plastics A-10 • Continue a cybersecurity awareness program for businesses • Continue the Life in Action recruiter program to help streamline the connection between employers and qualified candidates • Provide resources to grow and support key industries in Carlsbad’s economy • Support the long-term viability of small businesses, startups and entrepreneurs in partnership with local and regional collaborators • Support workforce development by collaborating with the San Diego North Economic Development Council and California State University San Marcos to expand an intern housing program • Streamline operations by consolidating the city’s core IT systems to improve efficiency associated with operating many different systems with different vendors • Expand the software platform for managing affordable housing, handling records, automating business processes and conducting data analytics • Continue modernization of IT infrastructure to improve cybersecurity and data analytics • Foster a culture of continuous improvement that equips the organization to deliver excellent service to the community • Attract and retain a talented, diverse and engaged workforce • Maintain CalPERS funded status of 80% or greater (City Council Policy 86) A-11 COMMUNITY ENGAGEMENT The City of Carlsbad is guided by two documents built on extensive feedback from the community: • Carlsbad Community Vision • City Council 5-Year Strategic Plan The Carlsbad Community Vision was first developed over 10 years ago through an 18-month public engagement process. Since that time, the city has checked in with the community every few years to validate the nine core values that make up the community’s vision for the future. While areas of emphasis have shifted based on current events, the economy and other factors, the values have stood the test of time. Strategic planning input process In 2021, the City Council decided to develop a 5-Year Strategic Plan to focus on building momentum on its highest priority goals. Previously, the City Council developed goals annually, often causing new goals to be added to the list before the previous year’s goals could be completed. As a result, progress could be slowed as staff’s efforts were spread among too many competing priorities. The City Council chose five main areas of focus within the Community Vision, based on input received from the community. Then, the public was invited to share their ideas and priorities within each area. This public engagement process yielded the largest amount of community input since the city launched a formal community engagement program in the early 2000s. The fiscal year 2024-25 budget represents the work plan and resource allocation for year three of the strategic plan’s implementation. A-12 Ongoing input The city continues to engage the community on specific projects and initiatives within the strategic plan. Input helping to shape decisions reflected in the fiscal year 2024-25 budget included: • Over 400 comments emailed from community members. • Over 385 participants at public workshops and meetings. • Over 4,600 surveys completed by community members. • Public workshops, online surveys and other engagement for specific projects: o Barrio public art traffic circle o Carlsbad Boulevard and Tamarack Avenue intersection improvements o Carlsbad Reads Together o Climate Action Plan o Housing Element Environmental Impact Report o Robertson Ranch Park vision and design o Safe Routes to School o TGIF Concerts in the Parks o Tyler Street complete streets improvements o Veterans Memorial Park public art Budget input Finally, the city also sought input on the budget itself through a public workshop, public meetings, social media and other channels. A list of these efforts can be found in the appendices. A-13 A-14 CARLSBAD, CALIFORNIA The City of Carlsbad is situated in north San Diego County where a great climate, beautiful beaches and lagoons, and abundant natural open space combine with world class resorts, family attractions, well- planned neighborhoods, a diverse business sector and a charming village atmosphere to create the ideal California experience. Our History Named for a famed 19th Century European spa whose mineral springs were found to be remarkably similar to those found here, the City of Carlsbad’s history reflects the heritage of many cultures. The shoreline of the city’s Agua Hedionda Lagoon was home to the indigenous Luiseño and Diegueños Indians for centuries before the arrival of the Spaniards. The area known today as Carlsbad was once a territory of Spain and then Mexico. The City of Carlsbad was incorporated in 1952 and today is home to approximately 114,000 people. Guided by an award-winning growth management plan approved by voters in 1986, the City of Carlsbad has matured into a well-rounded community where parks, roads and other infrastructure have kept pace with development. Now that the period of rapid growth is coming to an end, the city is focused on sustaining an excellent quality of life for residents and continuing to foster a strong sense of community. A-15 CITY GOVERNMENT The City of Carlsbad is a municipal corporation following the council-manager form of government. The City Council, the city’s legislative body, defines the policy direction of the city. The city manager oversees the day-to-day operations of the city. The City of Carlsbad also has an elected City Clerk and City Treasurer. Districts The City Council consists of an elected mayor and four elected council members. Each serves a four-year term. In 2017, the city switched to a system where City Council members are elected by district instead of at large or citywide. District boundaries were updated following the 2020 Census. Charter City There are two types of cities in California: charter and general law. Charter cities follow the laws set forth in the state’s constitution along with their own adopted “charter” document. General law cities follow the laws set forth by the state legislature. In 2008, City of Carlsbad residents voted to approve the charter city measure, Proposition D, by 82%. The charter gives the City of Carlsbad more flexibility on such issues as purchasing and contracting, because the process mandated by the state can be expensive and cumbersome, causing project delays. Certain affairs, such as traffic and vehicle regulation, open and public meetings laws, some planning and environmental laws, and eminent domain, remain matters of state authority even as a charter city. Boards and Commissions The City Council appoints members to a variety of boards and commissions, which provide opportunities for community engagement and recommendations to the City Council. Agricultural Conversion Mitigation Fee Committee Library Board of Trustees Arts Commission Parks & Recreation Commission Beach Preservation Commission Planning Commission Community-Police Engagement Commission Senior Commission Historic Preservation Commission Tourism Business Improvement District Housing Commission Traffic Safety & Mobility Commission A-16 DEMOGRAPHICS A-17 BUSINESS SECTOR Top Employers Name Industry Employees Viasat Information Technology 4,010 Thermo Fisher Scientific Life Sciences 2,332 Legoland California Hospitality and Tourism 2,300 Carlsbad Unified School District Education 1,097 Omni La Costa Resort & Spa Hospitality and Tourism 900 City of Carlsbad Government 797 Ionis Pharmaceuticals Life Sciences 785 Gemological Institute of America Research and Education 766 Park Hyatt Aviara Hospitality and Tourism 566 Zodiac Pool Systems LLC Manufacturing 535 Top Industries 2023 survey A-18 Top Sales Tax Generators* Apple Stores Legoland California Food & Beverage Autonation Subaru Carlsbad** Lexus Carlsbad BMW of Carlsbad Lowe's Home Centers Bob Baker Subaru** Omni La Costa Resort & Spa Canyon Bicycles USA Park Hyatt Aviara Resort Chevron Service Stations Premier Cadillac/Buick/GMC of Carlsbad Costco Wholesale Premier Chevrolet of Carlsbad Fashionphile Premier Kia of Carlsbad Hoehn Honda Certified Used Cars Tesla Motors Hoehn Mercedes Thermo Fisher Scientific Jaguar/Land Rover Carlsbad Toyota Carlsbad Ken Grody Dixon Ford Vons Grocery Company Legoland California *Alphabetical order. **Bob Baker Subaru became Autonation Subaru Carlsbad in 2023. A-19 HOW CARLSBAD COMPARES The table below shows General Fund revenue comparisons with neighboring jurisdictions for fiscal year 2024-25 adopted budgets. Population estimates for 2024 and total General Fund budgets are included for additional context. Population (2024 est.) General Fund Budget Property Tax Sales Tax Hotel Tax* Building Permit Fees Carlsbad 114,319 $238,468,445 % 39.7% 24.8% 14.5% 1.0% $830.15 $519.45 $304.21 $20.99 El Cajon 104,180 $100,963,525 % 28.1% 46.8% 3.5% 1.6% $264.22 $440.24 $32.69 $15.36 Encinitas 61,028 $100,053,000 % 62.4% 16.1% 4.7% 2.6% $1,098.68 $283.44 $83.57 $45.06 Escondido 150,002 $133,524,830 % 28.8% 35.7% 2.0% 1.1% $254.99 $316.42 $17.33 $9.53 National City 58,555 $73,572,535 % 16.7% 56.5% 2.9% 0.7% $199.90 $674.54 $34.16 $8.91 Newport Beach 82,419 $311,251,957 % 47.4% 14.3% 12.6% 1.1% $1,811.43 $548.78 $482.75 $43.00 Oceanside 171,483 $218,686,890 % 41.5% 13.5% 7.6% 1.6% $523.32 $170.57 $95.87 $19.59 San Clemente 62,297 $88,337,120 % 55.0% 16.0% 4.2% 0.7% $738.59 $214.26 $56.99 $10.07 San Marcos 95,998 $93,425,351 % 34.5% 24.2% 1.7% 0.8% $335.32 $235.19 $16.35 $7.40 Vista 99,723 $120,480,022 % 29.7% 29.5% 1.7% 1.5% $360.43 $358.56 $20.88 $18.05 *Transient occupancy tax Per capita % Percent of General Fund revenue A-20 2024-25 Revenue Per Capita Comparisons Property tax Sales tax $1,811.43 $1,098.68 $830.15 $738.59 $523.32 $360.43 $335.32 $264.22 $254.99 $199.90 Newport Beach Encinitas Carlsbad San Clemente Oceanside Vista San Marcos El Cajon Escondido National City $674.54 $548.78 $519.45 $440.24 $358.56 $316.42 $283.44 $235.19 $214.26 $170.57 National City Newport Beach Carlsbad El Cajon Vista Escondido Encinitas San Marcos San Clemente Oceanside A-21 Transient occupancy tax Building permit fees $482.75 $304.21 $95.87 $83.57 $56.99 $34.16 $32.69 $20.88 $17.33 $16.35 Newport Beach Carlsbad Oceanside Encinitas San Clemente National City El Cajon Vista Escondido San Marcos $45.06 $43.00 $20.99 $19.59 $18.05 $15.36 $10.07 $9.53 $8.91 $7.40 Encinitas Newport Beach Carlsbad Oceanside Vista El Cajon San Clemente Escondido National City San Marcos A-22 A-23 FISCAL ISSUES & FINANCIAL MANAGEMENT A-24 ECONOMIC AND FISCAL ISSUES FACING THE CITY At the time of developing the Fiscal Year 2024-25 Proposed Budget, the nation, state and city had been facing the lingering effects of unprecedented inflationary levels challenging the economy. In the City of Carlsbad, high inflationary levels have actually boosted some of the city’s revenue sources like sales and transient occupancy tax, but the city’s expenditures have also been impacted by inflation. The Federal Reserve has taken swift action to combat the rise in inflation by increasing interest rate targets. Although it is anticipated the Federal Reserve will begin to reduce target rates toward the end of calendar year 2024 and into 2025, we have yet to see inflation levels return to more historically normal levels. As the city moves forward, and as the level of disposable income, personal savings and pent-up demand continues to diminish as a result of these sustained inflationary levels, uncertainty about the city’s revenues keeping pace with its expenditures increases. Prior to the pandemic, the city boasted a low unemployment rate of 2.9%. At the height of the pandemic, unemployment spiked to 13.8%. Over the past three years, the unemployment rate has had some correlation to the prevalence of COVID-19 in the region. However, with the pandemic’s economic impacts behind us, unemployment rates settled between 2% and 3% during calendar year 2022 and increased to 3.5% in 2023. Through the first quarter of calendar year 2024, macro-trends in the tech industry pushed unemployment up nationally, but the labor market is still considered to be very tight. As of March 2024, the unemployment rate was 5.3% at the state level and 4.4% at the county and local level. National interest rates, which dropped significantly during the pandemic, have eclipsed pre-pandemic rates for all categories. One-year rates are currently at 5.10%, ten-year rates are currently at 4.48%, and 30-year rates are at 4.64%. Following the Federal Reserve’s increase in interest rate targets all the way to 5.25%-5.50%, inflation has decreased but not to desired levels of 2%. The Federal Reserve is expected to begin reducing rate targets later this calendar year and into 2025. As of May 2024, local inflation had decreased year-over-year from 5.2% to 3.2%. Maintaining good fiscal health must remain a top priority. Meeting this objective preserves the city’s ability to continue providing important programs and services to the community. Past economic challenges and prudent financial planning have provided opportunities for developing solutions to address lost revenues while preserving vital services. The positive effect of inflation on some of the city’s revenue sources have been significant but is considered one-time and something to be very closely monitored moving forward. As inflation is likely to decline in the future, so will revenue growth. Disciplined spending and long-term financial planning remain critical to ensuring the future sustainability of important city programs and services. A-25 Long-Term Financial Planning Strategic planning begins with determining the city's fiscal capacity based upon long-term financial forecasts of recurring available revenues and future financial obligations. Prior to the adoption of the annual budget, the finance department will prepare a Ten-Year Financial Forecast (Forecast) that evaluates known internal and external issues impacting the city's financial condition. The methodology for preparing the Forecast can be found in the appendices of this document. The Forecast is intended to help the city: • Attain and maintain financial sustainability, • Have sufficient long-term information to guide financial decisions, • Have sufficient resources to provide programs and services for the stakeholders, • Identify potential risks to on-going operations in the long-term financial planning process and communicate these risks on an annual basis, • Establish mechanisms to identify early warning indicators, and • Identify changes in expenditure or revenue structures needed to deliver services or to meet the goals adopted by the City Council. It is important to stress that the Forecast is not a budget. The Forecast does not dictate expenditure decisions, but rather highlights the need to prioritize the allocation of the city’s limited resources to ensure the continuation of core city services. The purpose of the plan is to provide the City Council, key stakeholders and the public an overview of the city’s fiscal health based on various financial and service level assumptions over the next ten years. It also allows for the discussion of necessary steps to be initiated during the development and implementation of future budgets. The Forecast is intended to look beyond the annual budget cycle and serve as a planning tool to bring a long-term perspective to the budget process. The Forecast also takes into consideration City Council policies that need to be met on an annual basis including General Fund reserve guidelines, pension funding guidelines, etc. Should projected expenditures exceed projected revenues in any given year, the City Manager will need to identify steps to mitigate the shortfalls prior to presenting a balanced budget to the City Council for consideration during the annual budget development process. It should be noted that the Forecast is a snapshot in time and will change as additional information is made available and incorporated into the fiscal projections. Inflation and the uncertainty associated with the economy has increased the volatility of projecting future revenues. The city prepares a long-term financial model for both capital and operating needs. It is imperative that the city plan for the impacts of development, the construction and operation of new public facilities, and planning resources needed to build them. The city prepares a ten-year operating forecast for the General Fund, a five-year Strategic Digital Transformation Investment Program, and a fifteen-year Capital Improvement Program. As part of the new Strategic Digital Transformation Investment Program and the Capital Improvement Program, the city annually calculates the amounts needed to pay for the projects and anticipated operating budget impacts. In this way, the city can anticipate the effects of development from both a capital and an operating perspective. One important initiative the city has undertaken to ensure its financial health is the development of an Infrastructure Replacement Fund. With this fund, the city sets aside a portion of General Fund revenues on an annual basis for major maintenance and replacement of its infrastructure. Much of the city’s infrastructure is relatively new; thus, the city is just now experiencing the impact of A-26 maintenance requirements. By setting aside funds now, the city’s residents can be assured that the proper maintenance and replacement will be performed, as needed, on streets, parks and many facilities for which the city is responsible. Employee retirement costs continue to require ongoing prudent fiscal management. The City Council issued a pension funding policy to codify its commitment to ensure that resources will be available to fulfill the city’s contractual retirement promises to its employees, and to minimize the chance that the funding of these benefits will interfere with providing essential services to the community. The policy outlines a funding discipline to ensure that adequate resources will be accumulated in a systematic and disciplined manner to fund the long-term cost of benefits to the plan participants and annuitants. Overall funding levels of the city’s plans are reviewed annually to ensure the city’s funding level remains at least 80% – the city’s minimum targeted level. While this enhances the city’s funding position, risks remain in the system. Required employer contributions will continue to increase over the next few years and actual contribution increases could exceed expectations if future investment return rates or other factors are unfavorable. Revenue and expenditure growth projections The city’s Forecast considers the annual growth of all currently known elements of city revenues and expenditures. Projecting revenues is particularly difficult when considering rising inflation and impacts to consumer demand. When forecasting expenditures, some of the major factors considered are rising healthcare and workers’ compensation costs, underperforming pension programs, and general inflation in both personnel and operating expenditures. Currently, the city projects expenditure growth will outpace revenue growth in the near future. To support the increase in ongoing costs, the city will need to consider alternative options, such as ways to increase economic activity that will drive sustainable increases in the city’s current revenue base, an expansion of the city’s revenue base, or a reduction of the city’s current service offerings and associated costs. FINANCIAL MANAGEMENT POLICIES Revenue Policies The development and maintenance of balanced and reliable revenue streams will be the primary revenue objective of the city. Efforts will be directed to optimize existing revenue sources while periodically reviewing potential new revenue sources. One method to maximize existing revenue sources is to promote a healthy business climate. Revenue estimates will be prepared on an annual basis during the preparation of the budget and major revenue categories will be projected on a ten- year basis. Revenues will be estimated conservatively using accepted standards and estimates provided by the state and other governmental agencies. Alternative revenue sources will be periodically evaluated to determine their applicability to meet identified city needs. Sources of revenue will be evaluated and modified as necessary to assure a diversified and growing revenue base that improves the city’s ability to handle fluctuations in individual revenue sources. Revenues from “one-time” or limited duration revenue sources will not be used for ongoing operating expenses. Fees and charges for services will be evaluated and, if necessary, adjusted annually to ensure that they generate sufficient revenues to meet service delivery costs. The city will establish user charges at a level generally related to the full cost (operating, direct, indirect and A-27 capital costs) of providing the service, unless the City Council determines that a subsidy from the General Fund is in the public interest, in accordance with the city’s cost recovery policy for fees and charges for services. The city will also consider market rates and charges levied by other municipalities of similar size for like services in establishing rates, fees and charges. Enterprise and internal service funds will aim to be self-supporting. Expenditure and Budget Policies Major expenditure categories will be projected on a ten-year basis. The city will operate on a current funding basis. Expenditures will be budgeted and controlled so as not to exceed current revenues plus the planned use of any accumulated fund balances. Annual budgeted operating expenditures shall not exceed annual operating revenues, including budgeted use of reserves, unless directed by the City Council. The City Manager shall prepare and submit to the City Council annually a proposed operating, strategic digital transformation investment program and capital improvement program budget and the budgets will be adopted by June 30 of each year. Budget status reports are prepared quarterly and posted on the city’s website. Because the budget is based on estimates, from time to time, it is necessary to make adjustments to finetune the line-items within it. Various levels of administrative control are utilized to maintain the budget’s integrity. Program managers are accountable for the line-item level of control of their individual program budgets. Department heads are accountable for the fund level of control for funds within their departments. The City Manager is accountable for the fund level of control for funds across departments, up to $100,000. The Finance Department oversees the general level of accountability related to budgetary integrity through systematic checks and balances and various internal controls. City Council Policy 87, General Fund Surplus Policy outlines the use of surplus funds resulting from unrestricted General Fund actual revenues exceeding total actual expenditures, encumbrances, and commitments for a given fiscal year. It is the intent of the city to use all surplus funds generated to meet reserve policies, and the reduction or avoidance of long term liabilities. The city will not use year-end surplus funds to fund ongoing operations unless otherwise approved by the City Council. The city will use surplus funds to replenish any General Fund deficiencies, up to the minimum level as set forth in City Council Policy 74, General Fund Reserve Policy and then any pension liability deficiencies, as defined in City Council Policy 86, Pension Funding Policy. The City Manager is authorized to approve the carryforward of any unencumbered and unspent budget for a particular item equal to or less than $100,000 into the following fiscal year. These items will be one-time expenditures and not for ongoing services, programs or personnel. Any remaining surplus funds in excess of reserve and pension liability deficiencies and items equal to or greater than $100,000 will be brought forward for City Council approval. The city adheres to long-range financial planning, which forecasts revenues and expenditures over a long-term period, using assumptions about economic conditions, future spending scenarios and other salient variables. Financial planning allows the city to execute overall strategies to support the process of aligning financial capacity with long-term service objectives. Financial forecasts are updated at least once a year, or more often if unexpected changes in economic conditions or other unforeseen circumstances exist. Any significant changes will be reported to the City Manager and the A-28 City Council. Otherwise, these financial forecasts will be used as a tool during the development of the annual budget process and to set utility rates as needed. Reserve Policies The city formally mandates the levels at which reserves shall be maintained for the General Fund and informally sets minimum target levels for the enterprise and internal service funds. City Council Policy 74, General Fund Reserve Policy was most recently updated and approved by the City Council in June 2019. The purpose of the policy is to establish a target minimum level of designated reserves in the General Fund to: • Reduce the risk of financial impacts resulting from a natural disaster or other catastrophic events; • Respond to the challenges of a changing economic environment, including prolonged downturns in the local, state or national economy; and • Demonstrate continued prudent fiscal management and creditworthiness. The city commits to maintaining General Fund reserves (the term reserve refers to any unassigned fund balance) at a target of 40% of General Fund annual operating expenditures. The total reserve level will be calculated using the prior year’s adopted General Fund budgeted expenditures. At the discretion of the City Council, reserve levels in excess of the 40% target requirement may be used for one-time opportunity cost purposes. Reserve funds will not be spent for any function other than the specific direction in the annual budget or by a separate City Council action. As a general budget principle concerning the use of reserves, the City Council decides whether to appropriate funds from reserves. Reserve funds will not be spent for any function other than the specific purpose of the reserve account from which they are drawn without specific direction in the annual budget or by a separate City Council action. The City Council approved City Council Policy 96, Utilities Reserve Policy in March 2023 to establish guidelines to ensure the fiscal stability of the potable water, recycled water and wastewater funds and provide guidance to staff in the management of each utility’s finances. These funds will target a reserve funding level of 100% of annual debt service costs, 120 days of operating costs, and 1% of system replacement value in emergency capital. The Wastewater Fund will target a reserve funding level of 50% of the five-year rolling average of annual spending on capital improvement projects while the Potable and Recycled Water funds will target 100% of this average. Also, the Wastewater Fund will target a reserve of 10% of rate revenues while the Potable and Recycled Water funds will target a reserve of 20% of rate revenues to provide a source of funds to smooth rates or avoid rate increases in the event of short- or mid-term disruption to revenues such as drought-related demand reductions. The city or the Carlsbad Municipal Water District’s potable water, recycled water and wastewater utilities will treat minimum reserve levels as practical reserve floors and allow reserves to increase or decrease as necessary within the minimum and target levels prescribed above. The city’s Workers’ Compensation and Risk Management (General Liability) funds will maintain minimum reserves equal to the estimated outstanding claims as calculated by a third-party administrator. Additional reserve amounts may be set aside as deemed appropriate based on third- party actuarial studies completed at two-year intervals. During the annual budget process, the target A-29 confidence level will be compared with the projected fund balance of each fund, and if the projected fund balance is greater than or lesser than the target, a plan to adjust the fund balance will be considered, using either or both increasing revenues through interdepartmental charges and one- time cash contributions from those funds contributing to the shortfall. The Information Technology Asset Replacement and Vehicle Asset Replacement funds shall maintain minimum reserve levels defined as the amount of accumulated depreciation of capitalized assets based on the original cost of each capitalized asset and up to a maximum reserve level defined as the accumulated depreciation based on the estimated replacement cost of each capitalized asset. Investment Policy The city has established a formal Investment Policy. It is the policy of the City of Carlsbad to invest public funds not required for immediate day-to-day operations in safe, liquid and medium-term investments that shall yield an acceptable return while conforming to all California statutes. It is intended that the policy cover the investment activities of all contingency reserves and inactive cash under the direct authority of the city. Investments of the city and its component units will be made on a pooled basis; however, investments of bond proceeds will be held separately if required. Pension Funding Policy The city’s City Council Policy 86, Pension Funding Policy embodies funding and accounting principles to ensure that resources will be available to fulfill the city’s contractual promises to its employees. The policy objectives include using actuarially determined contributions, or ADC, provided by CalPERS to fund the full amount of the ADC each year, maintaining no less than a combined minimum 80% funded ratio, and demonstrating accountability and transparency by communicating all information necessary for assessing the city’s progress toward meeting its pension funding objectives. In the event the city is unable to meet the minimum combined pension funded ratio of 80% with current resources (i.e., without borrowing or using reserves), the Finance Director will identify a reasonable period to return to a minimum 80% funded ratio status. In an effort to mitigate pension rate volatility, manage the city’s funded status and enhance local control of city funds, the city established a Section 115 Pension Trust. The city’s Section 115 Pension Trust is a tax-exempt investment tool that allows local governments to pre-fund pension and retiree health costs. Once contributions are placed into the trust, assets from the trust can only be used for retirement plan purposes. Withdrawals may be made to either reimburse the city for retirement system contributions or to directly pay CalPERS. Benefits of the trust include (1) local control over assets, (2) pension rate stabilization, (3) potential for higher investment return than General Fund, and (4) diversification from CalPERS’ investments. Contributions from the General Fund are invested in accordance with City Council Policy 98, Pension Trust Investment Policy. In an effort to maintain a combined funded status of 80% and to fund the costs associated with a potential reduction in CalPERS’ discount rate, the trust is scheduled to receive a total of $40 million in principal contributions over five fiscal years, and assuming an annual rate of return of 6.25%, the trust is projected to accumulate sufficient assets to fund a potential discount rate reduction from the current 6.8% to 6.25%. A-30 Long Term General Fund Capital Funding Policy The city’s City Council Policy 91, Long Term General Fund Capital Funding Policy ensures the needs of the city are met and demonstrates continued prudent fiscal management by providing a funding source for long-term, large value capital purchases. Many city assets demand large capital expenditures, examples include roads, building, parks and information technology infrastructure. The city funds the General Fund portion of these necessary investments by adopting an annual budget that includes a transfer from the General Fund to one or more of the city’s long-term capital funds. These long-term capital funds include the General Capital Construction Fund, the Infrastructure Replacement Fund and the Technology Investment Capital Fund. The city commits to targeting a transfer to the city’s long-term capital funds of 6% of budgeted General Fund revenues. The transfers are proposed during the annual budget process or on an as needed basis for the City Council’s consideration. Full versions of these policies and other City Council policies are available on the city’s website at www.carlsbadca.gov/city-hall/laws-policies/council-policies. A-31 APPROPRIATION LIMIT The appropriations limitation imposed by the state, otherwise known as the Gann limit, creates a restriction on the amount of revenue that can be appropriated in any fiscal year. The basis for calculating the limit began in fiscal year 1978-79 and is increased based on population growth and inflation. The appropriation limit applies only to those revenues defined as proceeds of taxes. • Population growth of Carlsbad, OR • Population growth within San Diego County, AND • Growth in California per capita income, OR • Growth in non-residential assessed valuation due to new construction in the city. The factors used to calculate the fiscal year 2024-25 limit were: • Population growth within San Diego County AND • Growth in California per capita income. The formula is outlined below: Fiscal year 2023-24 expenditure limit $607,584,374 % Population growth within San Diego County 1.0007 Growth in California per capita income X 1.0362 Net increase factor 1.0369 Fiscal year 2024-25 limit (2023-24 limit x factor) $630,004,237 Current appropriation of proceeds of taxes (Subject to the limit) $205,177,152 The City of Carlsbad’s appropriation limit is currently over three times its annual appropriations. With such a large margin, it is unlikely that the city will reach the appropriation limit in the foreseeable future. $- $100 $200 $300 $400 $500 $600 $700 2021 2022 2023 2024 2025 Mi l l i o n s Appropriations Limit by Fiscal Year Gann Appropriation LimitAppropriations Subject to Limit A-32 DEBT MANAGEMENT The City of Carlsbad has a AAA credit rating and is widely acknowledged for its financial stability and responsible management of resources. The use of debt has always been a primary issue in the development of the Capital Improvement Program and the policies put in place to implement the city’s Growth Management Program. Over the years, the city has issued millions of dollars of bonds and Certificates of Participation to fund streets, buildings, sewer and water facilities, open space acquisitions, and other infrastructure projects. The city is continually evaluating its outstanding debt as well as potential future issues to ensure that interest costs are kept at a minimum and the use of the bond funds is appropriate. The Government Code of the State of California has established maximum general obligation debt limits for local governments within the state. The city’s outstanding general obligation debt should not exceed 15% (as adjusted by 25% per the law) of total assessed property value. As of June 30, 2023, the city’s calculated debt limit for general obligation debt was $1.5 billion. The city currently has approximately $46.7 million of debt outstanding as of June 30, 2024. Of that $46.7 million, $14.5 million is water construction loans and the remainder is debt of financing districts. Outstanding debt obligations of financing districts (special districts and/or assessment districts) within the city do not obligate the City of Carlsbad and are not paid from the city’s General Fund. No new debt is anticipated to be issued for the General Fund in the upcoming year. A-33 The final principal payment for the Redevelopment Tax Allocation Bonds was paid in fiscal year 2023- 24. There was an additional draw of $5,449,065 of the 2014 State Water Resources Control Board construction loan in February 2024. Principal Repayment Bond Retirement OutstandingDebt Issue Name Source Fund Rating Year at 6/30/24 CFD #3 2016 Improvement Area 1 Special Tax Bonds Special District 434 Unrated 2036 5,835,000$ Refunding of CFD 1 CFD #3 2016 Improvement Area 2 Special Tax Bonds Special District 434 Unrated 2038 9,585,000 Refunding of CFD 2 1998 Rancho Carrillo (AD 96-1) Limited Obligation Assessment 409 Unrated 2028 1,415,000 Fund improvements within Rancho Carrillo Improvement Bonds District 2022 College/Cannon & Poinsettia Refunding Bonds Limited Obligation Assessment 425 Unrated 2035 15,350,000 Refund Poinsettia/College/Cannon Improvement Bonds District State Water Resources Control Board Loans 2005 Construction Loan 502 2025 631,082 Fund phase II of Industrial Park Pipelines 2006 Construction Loan 502 2027 3,525,467 Fund phase II of Industrial Park Pipelines 2014 Construction Loan 507 2055 10,346,279 Fund phase III of Industrial Park Pipelines Totals 46,687,828$ City of Carlsbad Outstanding Debt Issues Purpose Recycled Water User Fees Unrated Debt Issue Name Principal Interest Total Principal Interest Total Principal Interest Total CFD #3 2016 Improvement Area 1 Special Tax Bonds 380,000$ 152,163$ 532,163$ 5,835,000$ 1,153,819$ 6,988,819$ 8,290,000$ 2,537,069$ 10,827,069$ CFD #3 2016 Improvement Area 2 Special Tax Bonds 525,000 272,725 797,725 9,585,000 2,373,863 11,958,863 13,015,000 4,738,675 17,753,675 1998 Rancho Carrillo (AD 96-1) Limited Obligation 265,000 70,538 335,538 1,415,000 235,125 1,650,125 15,015,000 16,424,894 31,439,894 Improvement Bonds 2022 College/Cannon & Poinsettia Refunding Bonds Limited Obligation 995,000 742,625 1,737,625 15,350,000 4,932,000 20,282,000 16,240,000 6,190,906 22,430,906 Improvement Bonds State Water Resources Control Board Loans 2005 Construction Loan 631,082 15,777 646,859 631,082 15,777 646,859 9,694,504 2,595,825 12,290,329 2006 Construction Loan 1,148,537 81,086 1,229,623 3,525,467 163,401 3,688,868 19,382,546 5,174,387 24,556,933 2014 Construction Loan*- - - 10,346,279 286,169 10,632,447 10,346,279 286,169 10,632,447 Totals 3,944,619$ 1,334,913$ 5,279,533$ 46,687,828$ 9,160,153$ 55,847,981$ 91,983,329$ 37,947,924$ 129,931,253$ *State Water Resources Control Board 2014 loan includes interest accrued during the construction period. Loan is expected to enter repayment in fiscal year 2024-25. Debt Service Payments During FY 2024-25 Debt Service Payments from FY 24-25 to Maturity Debt Service Payments Total from Inception to Maturity A-34 BASIS OF BUDGETING The city budgets on a modified accrual basis for all funds except for its enterprise and internal service funds, which are budgeted on a full accrual basis. This is consistent with the city’s basis of accounting as reported in its Annual Comprehensive Financial Report. The city's Governmental fund budgets consist of: • The General Fund • Special revenue funds • Capital project funds To summarize, under this basis, revenues are estimated for the fiscal year if they are susceptible to accrual, e.g., amounts can be determined and will be collected within the current period. Principal and interest on general long-term debt are budgeted as expenditures when due, whereas other expenditures are budgeted for liabilities expected to be incurred during the current period or shortly thereafter to pay current liabilities. Proprietary fund budgets are adopted using the full accrual basis of accounting whereby revenue projections are developed recognizing revenues expected to be earned in the period, and expenditure estimates are developed for all expenses anticipated to be incurred during the fiscal year. The city's proprietary fund types consist of enterprise and internal service funds because the city has municipally-owned utilities or other enterprise activities. Fiduciary funds are used if the city has a fiduciary or custodial responsibility for assets. The city currently budgets for one fiduciary fund, the Successor Agency to the former Carlsbad Redevelopment Agency. The legal level of Budgetary Control is the fund level and expenditures should not exceed budgeted amounts at the fund level. Budgetary control is maintained through the city’s accounting system, as well as through monthly reporting on all revenue and expenditure accounts and other special reports summarizing the financial position of the city. The City Council adopts the formal budget for all funds prior to the beginning of each fiscal year and may amend the budget as necessary by City Council action throughout the year. All unencumbered, unspent appropriations expire at year- end unless specifically carried into the new fiscal year in accordance with City Council Policy 87, General Fund Surplus Policy. Internal Controls exist within the accounting system to ensure safety of assets from misappropriation or unauthorized use or disposition and to maintain the accuracy of financial record keeping. These internal controls must be established consistent with the sound management practices based on the cost and benefit of the controls imposed. The cost of a control should not be excessive in relation to its benefit as viewed by city management. The internal controls in existence within the city’s system are sufficient to ensure, in all material aspects, both the safety of the city’s assets and the accuracy of the financial record keeping system. Controls on the use and transfers of budget funds are outlined in the adopted budget resolution in the appendices of this document. A-35 BUDGETARY FUND STRUCTURE The budget of the city is organized based on funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self- balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures. Detailed descriptions of each fund and a department/fund budget relationship matrix can be found in the appendices of this document. The various funds are grouped as follows: GOVERNMENTAL FUNDS General Fund Special Revenue Funds • Affordable Housing • Agricultural Mitigation Fee • Buena Vista Channel Maintenance District • Citizens’ Option for Public Safety (COPS) • Community Activity Grants • Community Development Block Grant • Continuum of Care • Cultural Arts Donations • Encampment Resolution Fund • Habitat Mitigation Fee • Library and Arts Endowments • Library Gifts and Bequests • Lighting and Landscaping District 2 • Local Cable Infrastructure • Median Maintenance District • Opioid Settlement Fund • Permanent Local Housing Allocation • Police Asset Forfeiture • Public Safety Grants • Recreation Donations • Rental Assistance/Section 8 Program • Senior Program Donations • Street Lighting Maintenance District • Street Tree Maintenance District • Tyler Court Apartments Capital Project Funds • College Boulevard – Reach A • Community Facilities District 1 • Gas Tax • Gas Tax-Road Maintenance and Rehabilitation • General Capital Construction (GCC) • Grants-Federal • Grants-State • Infrastructure Replacement (IRF) • Park in-Lieu Fees (PIL) A-36 • Parking in-Lieu Fees • Planned Local Drainage Area Fees (PLD) • Public Facilities Fees (PFF) • Technology Investment Capital • Transportation Development Act (TDA) • Traffic Impact Fees (TIF) • TransNet PROPRIETARY FUNDS Internal Service Funds • Workers’ Compensation • Risk Management • Vehicle Maintenance • Vehicle Replacement • Information Technology Operations • Information Technology Replacement Enterprise Funds • Potable Water Operations • Potable Water Connection • Potable Water Replacement • Recycled Water Operations • Recycled Water Connection • Recycled Water Replacement • Wastewater Operations • Wastewater Connection • Wastewater Replacement • Solid Waste Management • Storm Water Protection • Watershed Protection • The Crossings Golf Course FIDUCIARY FUND Private Purpose Trust Fund • Successor Agency to the Redevelopment Agency A-37 The California Society of Municipal Finance Officers, or CSMFO, recognizes those entities with highly professional budget documents with two levels of certificates. The first level is the “Meritorious Budget Award,” which requires the entity to meet a very specific list of criteria defined by CSMFO. The second level is the “Operating Budget Excellence Award,” which requires that the organization meet even higher criteria which effectively enhances the usability of the document. In preparing the budget for fiscal year 2024-25, the city has once again followed CSMFO’s award criteria. This budget document will be submitted to CSMFO for the fiscal year 2024-25 budget award program. A-38 Government Finance Officers Association of the United States and Canada, or GFOA, presented a Distinguished Budget Presentation Award to City of Carlsbad, California, for its Annual Budget for the fiscal year beginning July 1, 2023. To receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide and as a communications device. This award is valid for a period of one year only. In preparing the budget for fiscal year 2024-25, the city has once again followed GFOA’s award criteria. This budget document will be submitted to GFOA for the fiscal year 2024-25 budget award program. B-1 OVERVIEW This section includes a summary of the revenues and expenditures included in the fiscal year 2024-25 operating budget. Spending is presented by funding source, department and type, such as personnel or maintenance and operations. For context, previous years’ spending levels are often presented alongside this information. Financial tables are presented to the nearest hundred thousand; rounding differences may exist. Detailed summaries of department services and expenditures are included within the five main sections of the operating budget following this overview. The five city branches include: • Public Safety • Public Works • Community Services • Administrative Services • Policy & Leadership Information about the city’s approach to planning for and funding digital transformation efforts throughout the city is included in the Strategic Digital Transformation Investment Program section. Information about capital projects, such as construction of roads and pipelines, the development of parks and construction and maintenance of city facilities, is included in the Capital Improvement Program section. B-2 REVENUE The Operating Budget for fiscal year 2024-25 totals $419.0 million, with revenues for the year estimated at $415.9 million. General Fund revenues are estimated at $239.1 million and General Fund budgeted expenditures are $238.5 million, which includes an additional $13.8 million in one-time transfers to the General Capital Construction Fund and $7.0 million to the Workers’ Compensation Fund. Excluding the one-time uses of General Fund surplus, the General Fund budgeted operating expenditures are $217.7 million. Revenue estimates for the Operating Budget indicate the city will receive a total of $415.9 million in fiscal year 2024-25, a change of 4.0% or $16.0 million above the estimated fiscal year 2023-24 revenues. General Fund revenues are expected to increase by $27.0 million compared to the prior year’s adopted revenues and $4.2 million or 1.8% compared to fiscal year 2023-24 estimates. Special Revenue funds are projected to decrease by 10.4% or $2.5 million over fiscal year 2023-24 estimates. Enterprise Fund revenues are projected to increase by 8.0% or $7.5 million in the upcoming fiscal year. Internal service funds are increasing over the prior year’s adopted budget and to fiscal year 2023-24 estimates. This is primarily driven by one-time transfers in from the General Fund to fund Workers’ Compensation, in addition to increasing revenue collections due to increasing costs across all internal service funds. The Successor Agency Housing Trust is no longer receiving any material revenue as the loan owed to the General Fund has now been fully repaid. More detailed information on the city’s revenue sources is provided in the following discussion. The following table shows the total operating revenues anticipated to be received by the city for fiscal year 2023-24, as well as those budgeted for fiscal year 2024-25. Estimated Budgeted $% 2023-24 2024-25 Change Change General Fund 234.9$ 239.1$ 4.2$ 1.8% Special Revenue 24.4 21.9 (2.5) -10.4% Enterprise 94.4 101.9 7.5 8.0% Internal Service 46.3 53.1 6.8 14.8% Total 400.0$ 415.9$ 16.0$ 4.0% REVENUE SUMMARY BY FUND TYPE (in Millions) Fund B-3 General Fund General Fund revenues provide a representative picture of the local economy. These revenues are of particular interest as they fund basic city services such as Police, Fire, Library & Cultural Arts, Street and Park Maintenance and Recreation programs. The table below provides a summarized outlook of the General Fund revenues. The city fully recovered from the COVID-19 pandemic’s adverse fiscal impacts by fiscal year 2022-23. Immediately following the pandemic and during the city’s fiscal recovery, economic uncertainty spiked from unprecedented inflationary increases. Between March of 2021 and November of 2023, the consumer price index for the San Diego region experienced continual inflationary increases ranging between 4.1% and 8.3%. Generally, during periods of high inflation, consumer demand diminishes which may negatively impact revenues sources like sales tax, transient occupancy tax and charges for services. To account for this, revenue estimates for both fiscal year 2022-23 and 2023-24 were set conservatively; however, pent-up demand and increased levels of personal saving during the pandemic allowed consumer demand to sustain higher prices for goods and services. Based on current fiscal year 2023-24 revenue estimates, inflation has not yet negatively impacted the city’s revenue sources. However, as personal savings accumulated during the pandemic is absorbed by pent-up demand and inflation, we are beginning to see a slowdown, particularly with sales tax and transient occupancy tax revenues. The Federal Reserve has also taken swift action in response to inflation, increasing interest rate ranges from 0.25% - 0.50% to 5.25% - 5.50% in just over a one-year period. Resultingly, inflation has decreased, but the Federal Reserve will continue to monitor inflationary data before considering any rate reductions. The risk of recession is still prevalent and continued inflationary increases indicate the most prudent path is to maintain a conservative outlook for the city’s revenues in the future. Nearly 80% of General Fund revenues are derived from three sources: property tax, sales tax, and transient occupancy tax, or TOT. Sales tax and TOT revenues tend to be much more sensitive to changes in economic conditions, unlike property tax revenues, which remain relatively stable because of the mitigating effect of Proposition 13, which limits annual growth in assessed values. Property tax, the largest source of General Fund revenues, is expected to grow by $3.1 million, or 3.4%, over last year’s estimates. While the residential real estate market in Carlsbad has seen significant increases in values in recent years, the growth has continued to cool off. Commercial property assessed values are expected to remain relatively flat as the increase in interest rates has created immense Estimated Budgeted $% 2023-24 2024-25 Change Change Property Tax 91.8$ 94.9$ 3.1$ 3.4% Sales Tax 58.9 59.4 0.5 0.8% Transient Occupancy Tax 34.8 34.8 - 0.0% Franchise Taxes 8.6 8.9 0.3 3.9% Business License Tax 6.4 6.6 0.2 3.2% Development Revenues 4.2 5.0 0.8 20.2% All Other Revenue 30.3 29.5 (0.8) -2.7% Total 234.9$ 239.1$ 4.2$ 1.8% GENERAL FUND REVENUES (In Millions) B-4 uncertainty in the sector. In response to the unprecedented inflationary increases experienced over the last three years, the Federal Reserve’s interest rate hikes have made purchasing a home more difficult for borrowers. While demand remains relatively high both locally and around the state and although median home values in Carlsbad have increased to $1.5 million as of March 2024, changes to interest rate targets will likely have an impact on home values during the upcoming fiscal year. Proposition 8 allows owners to have their property temporarily revalued if market value is lower than the factored base year value, posing a risk that commercial property values could temporarily decrease. Assessed values on the residential real estate side are expected to grow modestly, capped by California’s Proposition 13. Adopted in 1978, Proposition 13 limits the annual increase in assessed values for property. Under this proposition, assessed values (and the related property tax) can grow by no more than 2% per year. The value upon which the tax is based is only increased to the full market value upon the sale of a property. In recent years, residential activity has been driven by low interest rates on mortgages, pent-up demand that built during the shutdown and an increase in the ability to work remotely. Now, increasing rates and diminishing pent-up demand as we move past the pandemic will likely have adverse impacts compared to prior periods. Based on resale data from Zillow, the median price of a single-family residence in Carlsbad is $1.5 million, up by 12.0% year over year as of March 2024. Changes in property tax revenues lag behind changes in the housing market, as the tax revenue for the upcoming fiscal year is based on assessed values from the previous January. Thus, the taxes to be received for fiscal year 2024-25 are based on assessed values as of January 1, 2024. Property taxes tend to grow slowly unless there is a significant amount of development-related activity. In past decades the city has seen robust growth in property tax revenue due to new development, high turnover of existing homes and double-digit growth in housing prices. However, as opportunities for new development and growth lessen, development-related revenues have slowed. In addition to recent interest rate increases, slower development combined with minimal commercial property transactions and tax reform has caused a slowing in property tax growth in the city. $- $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 2017 2018 2019 2020 2021 2022 2023 2024e 2025e $ M i l l i o n s Fiscal Year Property and Sales Tax Revenues Property tax Sales tax B-5 Sales Tax revenues generally move in step with economic conditions and overall, Carlsbad’s economy has absorbed the inflationary increases experienced since 2021. The restrictions resulting from the COVID-19 pandemic led to increases in segments like auto sales, construction, drug store sales, chemical products, food markets and recreational products, while others like restaurants and general retail took a major hit. With the pandemic and its fiscal impacts behind us, the uncertainty stems from lingering inflation, whether the rise in interest rates will lower inflation levels adequately, and the timing for when the Federal Reserve will begin lowering interest rate targets in the future. Sales tax revenues improved markedly up until fiscal year 2019-20, peaking in fiscal year 2018-19 at $40.8 million. The onset of the pandemic in March 2020 resulted in swift reductions in sales tax revenues and the city ended the year with $38 million in sales tax revenues. During fiscal year 2020- 21, sales tax levels generally correlated with shelter-in-place mandates. As restrictions were lifted, the city’s sales tax levels recovered—the city ended fiscal year 2020-21 with $44 million in sales tax revenues. Fiscal year 2021-22 experienced the most accelerated recovery, ending the year at a historic high of $51.2 million in sales tax revenues. The fiscal year 2022-23 and 2023-24 sales tax estimates reflected uncertainty surrounding market and economic conditions like inflation and impacts to disposable income. Despite the levels of inflation, growth has been positive over this period; however, we are beginning to see some industry groups cool off compared to previous periods. With inflation still increasing at a rate higher than desired by the Federal Reserve as well as existing recessionary risk, staff have proposed a conservative estimate of $59.4 million in budgeted revenue for fiscal year 2024-25 which represents an increase of $0.5 million, or 0.8%, over fiscal year 2023-24 estimates. As indicated in the chart above, the city’s sales tax base is heavily weighted in the transportation (comprised heavily of new auto sales) and general retail sectors, which combined, account for over half of the taxable sales in Carlsbad. New auto sales are highly elastic—or responsive to changes in Transportation, 34.4% Construction, 1.7% General Retail, 18.8% Miscellaneous, 0.5% Restaurants & Markets, 14.1% Business to Business, 12.9% County Pool, 17.6% Sales Tax by Category Fourth Quarter 2023 B-6 price—in comparison to economic trends, and tax revenues from new auto sales fell precipitously during the recession, from $6.7 million in 2007 to $4.4 million in 2009. Since that dip, auto sales tax revenues have grown steadily and reached a high of $17.1 million for the four quarters ended December 31, 2023. With general retail sales tax suffering for the year ended December 31, 2020, and recovering in the year after, the most recent four quarters have shown full recovery as of calendar year 2022, but growth has leveled off during calendar year 2023. Sales tax revenues include those received under Proposition 72, a 0.5 cent increase in California sales tax for the funding of local public safety services. The third highest General Fund revenue source is Transient Occupancy Tax, also known as TOT or hotel tax. TOT was the revenue category most adversely impacted by COVID-19. From historic highs of $26 million in fiscal year 2018-19, the city experienced year-over-year decreases of 27% and 16%. Recovery from the pandemic was estimated conservatively; however, fiscal year 2021-22 proved otherwise, reaching a historic high of $32.4 million driven by the easing of restrictions, pent- up demand and an increase in average daily room rates. This trend continued in fiscal year 2022-23, whereby actual revenues exceeded conservative estimates that were applied to account for sustained levels of unprecedented inflation. Fiscal year 2023-24 is the first year in which year-over- year quarterly comparisons indicate a revenue slow down. It is estimated that fiscal year 2023-24 revenues will exceed the prior year, but future growth may be tempered by inflation, tourism demand and its impact on average daily room rates. Franchise Tax revenue has grown moderately in recent years and is projected at $8.9 million in fiscal year 2024-25. Franchise taxes are paid by certain industries that use the city’s right-of-way to conduct their business. The city currently has franchise agreements for cable TV service, solid waste services, cell sites, fiber optic antenna systems and gas and electric services. The solid waste franchise fee has experienced minor revenue increases that mirror growth in population and changes in rate structures. Cable TV franchise revenue is expected to remain relatively consistent from $2.0 million in fiscal year 2023-24 to $2.1 million in fiscal year 2024-25. This revenue source will most likely remain stable or decline in future years as more subscribers cut cable services and move to online streaming services. $22 $24 $26 $19 $16 $32 $34 $35 $35 $- $5 $10 $15 $20 $25 $30 $35 $40 2017 2018 2019 2020 2021 2022 2023 2024e 2025e $ M i l l i o n s Fiscal Year Transient Occupancy Taxes B-7 In April 2021, a new franchise agreement for solid waste was approved with Republic Services of San Diego. The city receives 7.5% of revenues collected as well as an annual payment of $0.8 million in support of AB 939 and $1.3 million storm water fee. The increase in fiscal year 2024-25 is relatively modest compared to the increase experienced in fiscal year 2022-23 that was driven by the $0.8 million payment to assist with AB 939. San Diego Gas & Electric pays franchise taxes for the use of the public land over which they transport gas and electricity. The city also receives an “in-lieu” franchise tax based on the value of gas and electricity transported on SDG&E lines but purchased from another source. The “in-lieu” tax captures the franchise taxes on gas and electricity that is transported using public lands, which would not otherwise be included in the calculations for franchise taxes due to deregulation of the power industry. This revenue source experienced a significant increase in fiscal year 2022-23 of $919,000 due to price increases but is expected to remain relatively flat over the next several years. Business license taxes are closely tied to the health of the local economy and are projected to increase to $6.6 million in fiscal year 2024-25. This represents growth of $0.2 million or 3% when compared to last year’s current estimates. Increases in business license taxes correlate with sales tax revenue increases as businesses either pay taxes based on the amount of their gross receipts or based on set fees. There are currently about 9,529 licensed businesses in the City of Carlsbad, 63 less than in the prior year with 6,630 of them located in the city. Development-related revenues are derived from fees for planning, engineering and building permits, and fees paid by developers to cover the cost of reviewing and monitoring development activities, such as plan checks and inspections. These revenues are difficult to predict as many of the planning and engineering activities occur months or years before any actual development. Over the last 10 years development-related revenues have fluctuated in line with increases and decreases in residential, commercial and industrial development. In fiscal year 2024-25 the city expects a 16% increase in development related revenues to approximately $3.4 million. This follows lower than anticipated development activity occurring in fiscal year 2023-24. The projected increase in development-related revenues is tied to the volume and type of development projected to be permitted, multi-family versus single-family, and the revenues derived from building fees which occur in the early stages of development. Increases applied to these charges for services are made in accordance with City Council Policy 95, Cost Recovery. Interdepartmental 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. Miscellaneous interdepartmental charges are expected to decrease by 10.9% compared to the prior B-8 year’s adopted budget, as a result of the city’s regular update to its citywide cost allocation, which drives the revenue allocations. Income from investments and property include interest earnings as well as rental income from city-owned land and facilities. The city is expected to earn about $4.1 million in interest on its General Fund investments for fiscal year 2024-25 and another $3.0 million in rental and lease income. The yield on the city’s portfolio is forecasted to average 2.4% and cash balances are expected to remain flat as increases in receipts are projected to be offset by increases in expenditures as the City Council’s goals are operationalized. Ambulance fee revenues are estimated to increase $0.4 million over last year’s estimates, from $7.2 million to $7.7 million. This increase is driven by a combination of the Fire Department’s recent fee study implementation, the addition of two medical transports, the Ground Emergency Medical Transportation Certified Public Expenditure Program, which helps cover uncompensated costs for Medi-Cal fee-for-service transports, and the participation in the Public Provider Ground Emergency Medical Transport Intergovernmental Transfer Program which will provide add-on reimbursement payments to help cover uncompensated costs in the future. Transfer taxes are those taxes paid to the county upon the transfer of interests in real estate. The tax is $1.10 per $1,000 of property value, split equally between the county and the city. Carlsbad expects to receive approximately $1.7 million in transfer taxes for fiscal year 2024-25 which is a 3.2% increase from fiscal year 2023-24 estimates. The residential real estate market continues to remain strong; however, this will likely be influenced by the Federal Reserve’s actions regarding interest rates. Housing prices in Carlsbad have increased in recent months and inventories are expected to remain low due to the insulated local demand. Other intergovernmental revenues include miscellaneous receipts received from the state or federal governments as well as local school districts. With the city receiving its two annual American Rescue Plan Act payments in fiscal 2020-21 and fiscal year 2021-22 totaling $12.6 million, intergovernmental revenues decreased substantially in fiscal year 2022-23 and are expected to remain relatively consistent in fiscal year 2024-25, in line with last year’s estimates. The All other revenues category includes fines and forfeitures, transfers in, miscellaneous reimbursed expenses, and other charges and fees. The estimate for fiscal year 2023-24 totals $0.5 million and is expected at $0.25 million in fiscal year 2024-25. B-9 Overall, and as reflected in the bar chart above, General Fund revenues are expected to increase $4.2 million or 1.8% from fiscal year 2023-24 estimates. The General Fund’s primary tax revenues are estimated to increase conservatively over last year’s estimates to account for the current economic uncertainty and risk of recession. Despite lingering inflation, the General Fund’s total revenues are expected to be bolstered by stable property tax values, a diversified sales tax base, and the implementation of the city’s cost recovery policy which increases fees for services in line with appropriate cost recovery levels. Other Funds Revenues from Special Revenue funds are expected to total $21.9 million, a decrease of $2.5 million or 10.4% from fiscal year 2023-24 estimates. Funds collected in this category are restricted to specified purposes. The types of programs supported within Special Revenue funds are those funded by specific revenue streams such as: • Federal Grants (Rental Assistance and Community Development Block Grants) • Special fees and assessments (Affordable Housing and maintenance assessment districts) • Donations (Library, Cultural Arts, Recreation and Senior Donations) $152 $159 $179 $174 $182 $199 $226 $233 $239 $- $50 $100 $150 $200 $250 $300 2017 2018 2019 2020 2021 2022 2023 2024e 2025e $ M i l l i o n s Fiscal Year General Fund Revenues B-10 Compared to the fiscal year 2023-24 adopted budget, the most noteworthy changes in the Special Revenue funds occurred in the Encampment Resolution Fund, whereby the city received $2.4 million of one-time state grant revenue in fiscal year 2023-24 that it will not receive again in fiscal year 2024- 25. The other significant change is in the Rental Assistance Fund, where increases of $1.0 million are expected to occur compared to fiscal year 2023-24 estimates. These revenues are primarily funded from federal grants. There is no revenue budgeted in the Successor Agency Housing Trust Fund, other than interest income from remaining funds. Although the Carlsbad Redevelopment Agency has been dissolved, the California Department of Finance has approved the repayment of the approximately $8.1 million (plus accrued interest) loaned to both the city’s former redevelopment areas by the General Fund as well as debt service payments remaining on the former agency’s 1993 Tax Allocation Refunding Bonds. All outstanding loans and interest accrued have been paid to the city by the end of fiscal year 2020-21 and debt service payments were completed in fiscal year 2023-24. Enterprise fund revenues for fiscal year 2024-25 are projected at $101.9 million representing an increase of 8.0% or $7.5 million over fiscal year 2023-24 estimates. The revenue breakdown by activity is shown in the graph on the following page. Enterprise funds are similar to a business in that rates are charged to support the operations that supply the goods or services. Carlsbad enterprise funds include water and recycled water delivery, wastewater services, solid waste management and the operation of a municipal golf course. The Water Enterprise Fund revenue for fiscal year 2024-25 is estimated at $50.1 million representing an increase of $2.5 million or 5.3% when compared to fiscal year 2023-24 revenue estimates. This is driven by increases in water delivery charges. Projected revenues for Recycled Water of $11.1 million are expected to increase by $1.4 million or 14.4% as minor customer growth is expected and a 1% rate increase is forecasted. Rental Assistance $13.2M, 61% Affordable Housing $0.7M, 3% Public Safety Grants$0.5M, 2% CDBG$0.6M, 3% Maintenance Districts $4.5M, 21% Donations and Grants $0.4M, 2% Permanent Local Housing Allocation$0.5M, 2% Tyler Court Apartments $0.8M, 3%All others$0.7M, 3% Special Revenue Funds FY 2024-25 Budgeted Revenues $21.9 Million B-11 Forecasted revenues for Wastewater are $25.9 million representing a 14.2% or $3.2 million increase over fiscal year 2023-24 estimates. This increased estimate is largely driven by rate increases of 20% in 2023 to support rising treatment costs and aging infrastructure costs. Estimated revenues from operations of the Golf Course are $11.3 million, a slight increase of $0.3 million or 3.1% when compared to fiscal year 2023-24 estimates. Solid Waste Management revenues are projected at $3.4 million, consistent with fiscal year 2023-24 estimates. Internal Service funds project estimated revenues of $53.1 million for fiscal year 2024-25 representing an increase of 14.8% or $6.9 million over fiscal year 2023-24 projections. This increase is driven by a one-time transfer from the General Fund of $7 million to fund Workers’ Compensation, along with increases corresponding with rising costs across all internal service funds. Internal service funds account for services provided within the city itself, from one department to another and on a cost reimbursement basis. These include programs such as the self-insurance funds for Workers’ Compensation and General Liability (Risk Management), as well as Vehicle Maintenance and Replacement and Information Technology. Departments pay for these services and therefore the rates charged are based on the cost to provide the service. The goal of an internal service fund is to match budgeted expenses with charges to the departments. A recent actuarial review of the Workers’ Compensation fund determined that the city should continue to set aside cash reserves in anticipation of future workers’ compensation claims. To achieve this, charges to city departments need to increase by 10-15% annually over the next several years. These planned increases went into effect in fiscal year 2021-22 and are continuing into fiscal year 2024-25. The fiscal year 2024-25 operating budget includes $14.5 million for Workers’ Compensation, including a one-time transfer from the General Fund of $7.0 million, and $8.0 million for Risk Management. Water Operations $50.1M, 49% Recycled Water $11.1M, 11% Wastewater Operations $25.9M, … Solid Waste Management $3.4M, 4% Golf Course Operations$11.3M, 11% Enterprise Funds FY 2024-25 Budgeted Revenues $101.9 million B-12 Vehicle Maintenance and Replacement charges are budgeted at $4.1 million and $7.2 million, respectively. Vehicle Maintenance revenues are up compared to fiscal year 2023-24 estimates primarily due increasing fuel costs. Vehicle replacement costs rise when the number of vehicles and the price of new vehicles or the cost to maintain those vehicles increases. For example, many older generation sedans at the end of their useful lives are now being replaced with hybrids and plug-in hybrids at a higher per unit cost. There have also been significant cost increases over the last several years in specialized vehicles such as fire trucks and ambulances as well as supply chain disruptions and unprecedented inflation that have significantly driven up prices. Information Technology charges to departments have increased by 11.9% or $2.1 million when compared to fiscal year 2023-24 estimates. The main reason for this increase is due to a departmental reorganization of the city’s innovation group, bringing the group into the Internal Service Fund budget. The increase is also attributable to contractual increases to existing service contracts. Internal Service Fund Allocation Methodology Most of the revenue for the city’s internal service funds is generated from internal service charges. The expenses of each fund are budgeted for and then allocated to other funds on an annual basis. Each fund uses a different allocation basis to charge other funds for its costs, summarized below. • Vehicle Replacement – Based on equipment assigned to departments. • Vehicle Maintenance – A combination of fixed and variable maintenance charges. Fixed maintenance charges are based on a three-year average of maintenance costs in combination with budgeted labor costs. Variable maintenance charges are based on actuals. • Information Technology Operations – A combination of computers per department for citywide maintenance/licensing and direct charges for department-specific items. • Information Technology Replacement – Based on a combination of equipment and hardware specifically assigned to a department and for infrastructure hardware an allocation based on computers per department as a percentage of citywide computers. • Workers’ Compensation – Based on a combination of personnel count and five-year average claims costs by department. • General Liability – Based on a combination of personnel count, five-year average claims costs by department and vehicles assigned to departments. B-13 EXPENDITURES The city’s Operating Budget for fiscal year 2024-25 totals $419.0 million, which represents an increase of about $41.7 million or 11.1% as compared to the adopted fiscal year 2023-24 budget. A summary of the changes in each of the city’s programs will be discussed below. Further information about each program can be found in the individual program summary pages. The General Fund contains most of the discretionary revenues that support core city services. However, this should not diminish the importance of the other operating funds as they also contribute to the array of services available within Carlsbad. The remainder of this section will provide more information about the budgeted expenditures by fund and program. To ensure the city continues to maintain a balanced budget and analyze its use of taxpayer dollars, the City Manager asked departments to reduce their existing budgets for fiscal year 2023-24 and decrease discretionary spending wherever possible. While administrative leadership’s direction for the fiscal year 2024-25 budget cycle does not propose a mandated budget reduction by each department, it will continue the expectation that staff incorporate opportunities to do business more efficiently and focus on spending areas that can be reduced with little to no impact on the community. In response to City Council feedback requesting staff identify ways to contain ongoing operational costs within the organization, staff conducted a review of staffing levels, workload and existing vacancies in an effort to find new opportunities for savings. As a result, 12 full-time equivalent positions are recommended for elimination as part of the fiscal year 2024-25 budget. This directive came after budget reductions of nearly 2% and 3% were achieved in fiscal year 2022-23 and 2023-24, respectively. These efforts contributed to the city’s ability to present a balanced budget in fiscal year 2024-25 push the projected deficit further out to the future. The reductions proposed were carefully evaluated to ensure ongoing service level impacts were mitigated as much as possible. The total Operating Budget for the General Fund for fiscal year 2024-25 is $238.5 million which is $21.5 million or 9.9% more than the previous year’s adopted budget of $216.9 million. These changes are discussed in more detail on the following pages. Budget Budget $% 2023-24 2024-25 Change Change General Fund 216.9$ 238.5$ 21.5$ 10.0% Special Revenue 20.2 21.3 1.0 5.5% Enterprise 105.7 118.5 12.8 12.1% Internal Service 33.3 40.7 7.4 22.2% Successor Agency Housing Trust 1.1 - (1.0) -100.0% Total 377.3$ 419.0$ 41.7$ 11.1% By Fund Type (In Millions) BUDGET EXPENDITURE SUMMARY B-14 Personnel costs make up 57% of the General Fund budget. The total personnel budget for fiscal year 2024-25 is $134.7 million which is $4.6 million or 3.6% greater than the previous year’s total personnel budget of $130.1 million. This is driven by an increase in CalPERS’ unfunded liability payment, negotiated compensation increases as well as anticipated step increases. In fiscal year 2024-25, the preliminary budget continues to propose including a line item for “vacancy savings.” This represents the estimated amount of budgeted personnel savings that will be realized by the end of the fiscal year. This mechanism is proposed for multiple reasons: (1) budgeting for vacancy savings reduces the total amount of the General Fund budget, (2) budgeted personnel costs more closely align with actual personnel costs over the course of the fiscal year, (3) historically, the city would bring recommendations to repurpose budget savings at the mid-year point of the fiscal year. This mechanism pre-emptively achieves that objective, and (4) budgeting vacancy savings will achieve alignment with the city’s 10-year forecast which has historically included a line item for vacancy savings. The table above shows the breakdown of personnel costs for the General Fund. General Fund salaries include full-time and part-time staff costs and are expected to increase in fiscal year 2024-25 by $1.3 million or 1.5%. The increase is primarily due to negotiated salary increases offset by a reduction in total full-time equivalents of 9.7. The full-time staffing changes are listed on the following page. Budget Budget $% 2023-24 2024-25 Change Change Personnel 130.1$ 134.7$ 4.6$ 3.6% Personnel, gross 132.1 136.7 4.6 3.5% Vacancy Savings (2.0) (2.0) - 0.0% Maintenance & Operations 64.9 65.6 0.7 1.3% Capital Outlay 0.1 0.5 0.4 586.2% Transfers 21.9 37.5 15.6 71.4% Subtotal 217.0$ 238.5$ 21.5$ 9.9% GENERAL FUND SUMMARY By Expenditure Type (In Millions) Budget Budget $% 2023-24 2024-25 Change Change Salaries and Wages 88.5$ 89.8 1.3 1.5% Salaries and Wages, gross 90.5 91.8 1.3 1.4% Vacancy Savings (2.0) (2.0) - 0.0% Retirement Benefits 23.2 25.3 2.1 9.1% Health Insurance 10.7 10.9 0.2 2.3% Other Personnel 7.7 8.6 0.9 11.9% Total 130.1$ 134.7$ 4.6$ 3.5% Personnel Costs (In Millions) GENERAL FUND B-15 Full-time equivalent staffing reductions General Fund: • (1) Management Analyst – Office of the City Manager (Vacant) • (1) Senior Office Specialist – Office of the City Council (Vacant) • (1) Deputy City Clerk – City Clerk (Vacant) • (1) Lead Librarian – Library & Cultural Arts (Vacant) • (0.7) Production Technician – Library & Cultural Arts (Vacant) • (1) Parks Maintenance Worker – Parks & Recreation (Vacant) • (1) Associate Engineer – Community Development (Vacant) • (1) Chief Innovation Officer – Innovation & Economic Development • (1) Senior Program Manager for Diversity, Equity & Inclusion (DEI) – Human Resources • (0.5) Administrative Assistant – Administrative Services (Part-time) • (0.5) Hourly Professional – Communication & Engagement (Part-time) Non-General Fund: • (1) System Specialist – Information Technology (Vacant) • (1) Senior Environmental Specialist – Environmental Sustainability (Vacant) • (0.3) Production Technician – Library & Cultural Arts (Vacant) Retirement Benefits Cost 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. As part of CalPERS’ strategy to ensure the plan’s sustainability, CalPERS deliberately raised participating agencies’ contributions over several years to improve the plan’s long-term funded status. The pension system continues to pursue tactics in support of its strategy to ensure plan sustainability such as investing in assets with the objective of achieving a long-term rate of return that meets or exceeds 7%. While pension costs are increasing, there is some downward pressure on costs as new employees receive lower pension benefits. CalPERS has taken significant steps to ensuring plan sustainability, but pension costs still pose a significant risk on the city’s cost profile. 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 contributions of $56.4 million to decrease future costs of the city’s unfunded actuarial liability and achieve a funded status of 80% in accordance with City Council Policy 86. In fiscal year 2023-24, the City Council also approved the establishment of a Section 115 Pension Trust and a $10.0 million initial contribution. Assets in the trust will be available to the city to maintain an 80% funded status, mitigate pension rate volatility and potentially earn a higher rate of return than if the funds were left in the General Fund. This active management helps ensure that resources are available to fulfill the city’s contractual promises to its employees and minimizes the chance that funding these pension benefits will interfere with the city’s ability to provide essential public services. Fiscal year 2024-25 reflects $12.7 million of city contributions required to make up for 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. B-16 CalPERS’ abysmal investment performance in fiscal year 2021-22. This represents an increase of $2.5 million or 25% compared to the previous year. General Fund Health Insurance costs in the General Fund are increasing slightly from $10.7 million to $10.9 million. Other Personnel Costs include workers’ compensation expenses and other miscellaneous costs such as Medicare, unemployment and disability which are increasing collectively by $0.9 million or 11.9%. Maintenance and Operations costs represent about 27.6% of the total General Fund budget and include the budgets for all program expenses other than personnel, capital outlay and transfers. Overall, total maintenance and operations costs are projected at $65.7 million, which represents an increase of about $0.8 million or 1.3% for fiscal year 2024-25 when compared to fiscal year 2023-24. 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 3.6% and 5.2% thus far in fiscal year 2023-24. 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. As a result, the fiscal year 2024-25 proposes a minimal increase to maintenance and operations given the lingering inflation in the economy. Capital Outlay includes budgeted equipment purchases over $1,000. Capital outlay purchases of $0.5 million are budgeted in the General Fund for fiscal year 2024-25. This represents an increase of $0.4 million and is primarily due to the Police Department’s need to purchase AED replacements for its fleet of vehicles in the upcoming year. Operating Costs Associated with Capital Investments As the city completes major capital projects, the costs of maintaining and operating the facilities and improvements, including additional personnel, if necessary, are added to departmental operating budgets. The city’s Capital Improvement Program and Strategic Digital Transformation Investment Program budgets include future projected operating impacts, which are estimated in the tables found in sections H and I, respectively. Advances Advances and repayments of prior advances are amounts anticipated to be transferred from the General Fund to other city funds with expectation of repayment in future years. No General Fund advances are included in this year’s operating budget. B-17 Expenditures in the General Fund remained relatively consistent until fiscal year 2016-17, when the expenditures included $25.3 million in one-time costs, including $10.5 million for a transfer to the Capital Improvement Program for Fire Station 2 reconstruction and $14.8 million to pay off the golf course construction bonds. The expenditures for fiscal year 2017-18 reflect a substantial decrease due to the one-time costs reflected in fiscal year 2016-17. These cost reductions were partially offset by an additional one-time payment to CalPERS to address the city’s unfunded pension liability, the addition of nine staff members, additional legal and expert costs associated with the county airport expansion and the Safety Training Center lawsuit, higher personnel costs due to normal salary and benefit increases and higher mutual aid costs. Expenditures in fiscal year 2018-19 reflect an additional one-time $20 million payment to CalPERS to further bring down the city’s unfunded pension liability. Fiscal year 2019-20 included the addition of 34 new full-time employees but was largely offset due to the city’s response to the COVID-19 pandemic and the need to reduce discretionary spending as much as possible during that unprecedented time. Fiscal year 2020-21 expenditures reflect an additional $10 million one-time payment to CalPERS to further bring down the city’s unfunded pension liability. The increase was largely offset by the continuation of the COVID-19 pandemic and the city’s efforts to curb and defer expenditures. Fiscal year 2021-22 expenditures reflect the plan to reinstate city services back to pre-pandemic levels and operationalize the City Council’s goals. The increase includes $5.9 million in one-time costs associated with the goals and the addition of 18 new full-time and 6.7 part-time employees which are mostly associated with the goals. The city again made an additional one-time $6.4 million payment to CalPERS to bring down the city’s unfunded pension liability. Fiscal year 2022-23 expenditures include the addition of 24 full-time employees as well as a number of new one-time requests to execute City Council goals, as well as a total of $10.6 million in one-time $171 $148 $168 $164 $216 $199 $205 $223 $238 $- $50 $100 $150 $200 $250 2017 2018 2019 2020 2021 2022 2023 2024e 2025e $ M i l l i o n s Fiscal Year General Fund Expenditures B-18 transfers to fund Workers’ Compensation, Risk Management, and Fleet Maintenance. Lastly, a $2 million allocation was approved to fund the Safer Streets local emergency. Fiscal year 2023-24 expenditures include budget reductions of approximately 3% of the base maintenance and operations budget, offset by negotiated compensation and contractual benefit increases. Additionally, a $5.2 million allocation was approved for the Carlsbad Village Trenching Project. Another way of looking at the General Fund budget is by Program Expenditures. The chart below compares the total fiscal year 2024-25 budget to those amounts adopted in the previous year. A detailed description of each department, its services, budget summary and department accomplishments and priorities can be found in the department program summary pages. Transfers are amounts anticipated to be transferred from the General Fund to another city fund. The transfers included in the adopted budget are as follows: • $14.4 million split evenly between the Infrastructure Replacement Fund, General Capital Construction Fund and the Technology Investment Capital Fund ($4.8 million each). This will fund major new construction, maintenance and replacement of city infrastructure and facilities, and the city’s future technology needs. This represents 6% of budgeted General Fund revenues and is in line with the requirements set forth in Council Policy 91, Long Term General Fund Capital Funding Policy. Budget Budget $% 2023-24 2024-25 Change Change Administrative Services - Administration 0.7$ 0.8$ 0.1 1.5% Administrative Services - Finance 5.3 5.6 0.3 5.8% Administrative Services - Human Resources 5.0 5.1 0.1 2.1% Administrative Services - Economic Development 2.6 0.9 (1.7) -65.8% Community Services - Administration 0.6 0.6 - 1.2% Community Services - Community Development 11.0 11.0 - -0.1% Community Services - Housing & Homeless Services 2.8 3.2 0.4 16.9% Community Services - Library & Cultural Arts 13.6 14.5 0.9 6.5% Community Services - Parks & Recreation 21.1 22.8 1.7 8.1% Policy & Leadership Group 8.4 8.4 - 0.4% Public Safety - Fire 37.9 41.8 3.9 10.3% Public Safety - Police 55.6 60.2 4.6 8.2% Public Works - Administration 1.6 1.6 - -1.9% Public Works - Construction Mgmt. & Inspection 3.3 3.1 (0.2) -5.8% Public Works - Environmental Sustainability 1.2 1.2 - 2.7% Public Works - Facilities 7.5 7.2 (0.3) -4.1% Public Works - Transportation 9.7 10.8 1.1 10.4% Non-Departmental 29.0 39.7 10.7 37.1% Total 216.9$ 238.5$ 21.6$ 9.9% GENERAL FUND EXPENDITURES By Department (In Millions) A detailed description of each department’s budget can be found in the department program summaries. B-19 • $13.8 million in additional transfers to the General Capital Construction Fund resulting from the estimated General Fund surplus. The General Capital Construction Fund is funded by the General Fund and includes many capital projects programmed in the future. The level of funding necessary to fully fund these projects is an increasing concern. This one-time transfer amount will assist with funding the city’s general capital construction into the future. • $7.0 million in additional transfers to the Workers’ Compensation Fund in an effort to increase the program’s reserve to achieve a funded status of approximately 85%. This level of funding is consistent with actuarial standards and in accordance with recommendations from the city’s external auditors. • $0.4 million to the Storm Water Program for reimbursement of the General Fund portion of Storm Water expenses. • $1.5 million to the Median Maintenance and Street Tree Maintenance Special Revenue Funds to cover cash shortfalls, as annual assessments collected from property owners do not cover annual operating expenditures. Annual assessments can only be increased with a majority vote of the property owners. • $0.6 million to the Fleet Replacement Fund for historical chargebacks related to a Police Department vehicle purchase. General Fund Summary The operating budget for fiscal year 2024-25 provides a balanced General Fund budget for the coming fiscal year with General Fund revenue estimates exceeding General Fund budgeted expenditures by $0.6 million. Fiscal Year 2024-25 General Fund Operating Budget General Fund fiscal year 2024-25 revenue estimates $239.1 million General Fund fiscal year 2024-25 preliminary expenditures $238.5 million Projected operating surplus for fiscal year 2024-25 $ 0.6 million General Fund Reserves Projected unassigned balance at June 30, 2024 $148.4 million Plus: projected fiscal year 2023-24 surplus $ 0.6 million Less: asset replacement reserve allocation $ (17.5 million) Equals: projected unassigned balance at June 30, 2025 $131.5 million Asset Replacement Reserve The city commits to maintaining its large machinery and equipment inventory. When an asset is procured, it begins depreciating the moment it is put into service and needs to be replaced at the end of its respective useful life. The city’s large equipment inventory represents approximately $60 million of the city’s total fixed assets. On an annual basis, this translates to a significant financial need and commitment to maintain the inventory. In an effort to not only prioritize these purchases, but to strategically plan for the ongoing financial impacts, staff recommend establishing a General Fund B-20 Asset Replacement Reserve. Separate and apart from the General Fund Reserve (City Council Policy 74), this Asset Replacement Reserve will serve as a mechanism for funding large machinery and equipment needs without impacting the General Fund Reserve or annual budget surplus year after year. As of fiscal year 2024-25, and for the next 10 fiscal years, a total of $17.5 million is projected to be needed to fund asset replacement costs in the General Fund. The asset replacement schedule can be found in the appendices. Changes in Other Funds Special Revenue funds are budgeted at $21.3 million representing an increase in expenditures of 5.1% or $1.0 million when compared to fiscal year 2023-24. Other than a $2.0 million increase in rental assistance programming and $1.1 million decrease for one-time Permanent Local Housing Allocation grant funds, spending in most Special Revenue Fund programs is expected to remain relatively consistent with the prior year. Expenditure increases of $2.0 million or 17.5% are planned in the Rental Assistance Fund largely because of program expansion and corresponding increase in rental assistance payments. This reflects additional revenue received from federally funded programs to assist more lower-income households in Carlsbad. The fiscal year 2024-25 expenditure budget is also $1.1 million less than fiscal year 2022-23 due to one-time revenue received in the Permanent Local Housing Allocation Fund. These are state funds provided to local governments in California for housing-related projects and programs that assist in addressing the unmet housing needs of local communities. Enterprise funds total $118.5 million, which represents an increase of $12.8 million or 12.1% over the fiscal year 2023-24 adopted budget. The Potable Water and Recycled Water funds continue to operate and maintain critical infrastructure systems and provide the safe delivery of drinking water, conservation outreach and treated irrigation water. The cost of purchased water continues to increase, causing an overall increase in the Potable Water budget. The Wastewater fund provides reliable wastewater collection services. The budget for this fund’s increase is primarily due to an increase in the transfers out to fund its related capital improvement fund. The Internal Service funds total $40.7 million, which represents an overall increase of $7.4 million or 22.3% over fiscal year 2023-24. Much of the increase in Workers’ Compensation and Risk Management costs is attributable to rising insurance liability rates, claims filed and administrative costs. Vehicle Replacement is the largest contributor to the increase and driven by a higher number of more costly vehicles scheduled for purchase in the upcoming year. Information Technology is $2.1 million or 12.4% higher than the previous year which is due to contractual service increases as well as a reorganization of staff from Innovation & Economic Development Department. The budget for the Successor Agency Housing Trust Fund for fiscal year 2024-25 is decreasing by $1.0 million compared to last year. The Recognized Obligation Payments Schedule identifies financial commitments of the former Redevelopment Agency, including the remaining scheduled debt service payments on the Redevelopment Agency bond issue, the outstanding loan from the city’s General Fund and minor allowable administrative costs. The last debt service payment on the bond issue was completed in September 2023 and the city loan was paid off in fiscal year 2020-21. In fiscal year 2024- 25, the city will work to complete the dissolution and close the fund. B-21 Changes to Fund Balance While the projected cumulative change in the city’s non-major operating funds’ ending balances is not significant, two major operating funds are projected to see changes in their fund balances greater than 10%. The Water Operations Fund is expected to decrease by 35.2% by the end of fiscal year 2024-25, largely due to increasing operations costs and cash transfers to account for depreciation. The Recycled Water Operations Fund is expected to increase because it is not completing a cash transfer to account for depreciation and the funding of capital projects in fiscal year 2024-25; the ability for the fund to complete this cash transfer will be reevaluated in future years. Changes between the proposed and adopted budget In response to City Council direction, staff made the following changes to the preliminary operating budget presented to the City Council on May 21, 2024, with an approximately $196,000 impact on the General Fund final expenditure budget: • General Fund: transferred Senior Program Manager from the Administrative Services Administration Department to the Economic Development Department within the Administrative Services Branch. This action has no net fiscal impact and increases the number of full-time equivalent positions in the Economic Development Department from 1.0 to 2.0. • Golf Course Enterprise Fund: increased capital outlay amount by $36,000 to include projects for protective netting, patio heaters and driving range grass tee expansion. There are sufficient revenues and existing reserves to absorb this increase in fiscal year 2024-25. B-22 PERSONNEL ALLOCATIONS Adopted Adopted Adopted Adopted Budget Budget Budget Budget Department 2021-22 2022-23 2023-24 2024-25 City Attorney 8.00 8.00 8.00 8.00 City Clerk Services 7.00 7.00 7.00 6.00 City Council 2.00 2.00 2.00 1.00 City Manager 7.00 7.00 7.00 6.00 City Treasurer 1.00 1.00 1.00 1.00 Communication & Engagement 7.00 9.00 9.00 9.00 Administrative Services - Administration 3.00 3.00 3.00 3.00 Economic Development 4.00 9.00 9.00 2.00 Finance 28.00 26.00 26.00 26.00 Human Resources 17.00 18.00 18.00 17.00 Information Technology 37.00 43.00 43.00 48.00 Community Services - Administration 3.00 3.00 2.00 2.00 Community Development 53.00 52.00 52.00 51.00 Housing & Homeless Services 14.00 16.00 16.00 16.00 Library & Cultural Arts 52.50 51.00 53.00 51.00 Parks & Recreation 55.00 59.00 59.00 58.00 Fire 111.00 123.00 124.00 124.00 Police 186.00 187.00 187.00 187.00 Public Works 177.75 182.75 181.75 180.75 Total Full-Time Personnel 773.25 806.75 807.75 796.75 Hourly Full-Time Equivalent Personnel 193.81 180.90 167.84 166.79 Total 967.06 987.65 975.59 963.54 Note: The figures presented above include various reorganizations and personnel transfers between departments. B-23 SCHEDULE OF PROJECTED FUND BALANCE Projected Projected Beginning Ending Change as % of Fund Balance Estimated Estimated Fund Balance July 1, 2023 Fund July 1, 2023 Revenues Expenditures June 30, 2024 Fund Balance General Fund 136,840,376$ *234,882,619$ 223,333,352$ 148,389,643$ *8.4% Special Revenue Funds Affordable Housing 14,360,256 1,264,318 364,206 15,260,368 6.3% Agricultural Mitigation Fee 1,162,955 26,700 195,118 994,537 -14.5% Buena Vista Channel Maintenance District 1,496,574 136,110 251,358 1,381,326 -7.7% Citizens' Option for Public Safety 479,869 302,500 280,000 502,369 4.7% Community Activity Grants 1,091,024 26,400 5,000 1,112,424 2.0% Community Development Block Grant 216,543 986,965 970,000 233,508 7.8% Continuum of Care - 232,972 232,972 - 0.0% Cultural Arts Donations 321,857 42,900 179,350 185,407 -42.4% Encampment Resolution Fund - 2,394,509 1,094,000 1,300,509 0.0% Habitat Mitigation Fee 31 10,226 - 10,257 32987.1% Library and Arts Endowments 259,331 6,300 6,000 259,631 0.1% Library Gifts and Bequests 1,666,903 114,700 410,600 1,371,003 -17.8% Lighting and Landscaping District 2 5,258,109 891,311 354,136 5,795,284 10.2% Local Cable Infrastructure 701,326 285,000 568,020 418,306 -40.4% Median Maintenance District 261,536 1,408,661 1,427,715 242,482 -7.3% Opioid Settlement Fund 353,033 7,900 15,000 345,933 -2.0% Parking In Lieu Fee 1,108,168 25,900 - 1,134,068 2.3% Permanent Local Housing Allocation - 696,260 310,319 385,941 0.0% Police Asset Forfeiture 193,192 176,756 72,783 297,165 53.8% Public Safety Grants (70,799) 290,857 456,680 (236,622) -234.2% Recreation Donations 310,317 34,100 52,570 291,847 -6.0% Rental Assistance 70,824 12,227,649 12,205,365 93,108 31.5% Senior Donations 285,400 27,000 23,238 289,162 1.3% Street Lighting Maintenance District 2,699,003 1,057,508 1,202,937 2,553,574 -5.4% Street Tree Maintenance District 176,929 1,012,481 924,191 265,219 49.9% Tyler Court Apartments 98,725 694,895 730,800 62,820 -36.4% Total Special Revenue Funds 32,501,106 24,380,878 22,332,358 34,549,626 6.3% Enterprise Funds Water Operations 30,483,929 47,550,996 55,109,813 22,925,112 -24.8% Recycled Water Operations 1,458,836 9,721,597 10,938,070 242,363 -83.4% Wastewater Operations 15,067,417 22,675,900 24,180,157 13,563,160 -10.0% Solid Waste Management 10,548,683 3,411,529 5,367,260 8,592,952 -18.5% Golf Course 5,180,742 11,004,778 9,304,598 6,880,922 32.8% Total Enterprise Funds 62,739,607 94,364,800 104,899,898 52,204,509 -16.8% Internal Service Funds Workers' Compensation 209,638 8,416,210 5,161,119 3,464,729 1552.7% Risk Management (3,847,278) 12,247,660 6,726,887 1,673,495 143.5% Vehicle Maintenance 883,513 3,646,563 3,805,991 724,085 -18.0% Vehicle Replacement 20,879,291 4,654,734 3,045,488 22,488,537 7.7% Information Technology 9,377,219 17,317,111 17,357,258 9,337,072 -0.4% Total Internal Service Funds 27,502,383 46,282,278 36,096,743 37,687,918 37.0% Successor Agency Housing Trust Fund 1,131,055 44,618 1,008,833 166,840 -85.3% Total Operating Funds 260,714,527$ 399,955,193$ 387,671,184$ 272,998,536$ 4.7% * For the General Fund only, this represents unassigned fund balance. B-24 SCHEDULE OF PROJECTED FUND BALANCE Projected Projected Beginning Ending Change as % of Fund Balance Estimated Adopted Fund Balance June 30, 2024 Fund June 30, 2024 Revenues Budget June 30, 2025 Fund Balance General Fund 148,389,643$ *239,061,383$ 238,468,445$ 131,482,581$ *-11.4% Special Revenue Funds Affordable Housing 15,260,368 706,860 631,917 15,335,311 0.5% Agricultural Mitigation Fee 994,537 26,060 - 1,020,597 2.6% Buena Vista Channel Maintenance District 1,381,326 137,290 195,245 1,323,371 -4.2% Citizens' Option for Public Safety 502,369 295,190 295,830 501,729 -0.1% Community Activity Grants 1,112,424 27,990 30,000 1,110,414 -0.2% Community Development Block Grant 233,508 583,215 548,215 268,508 15.0% Continuum of Care - 235,280 - 235,280 0.0% Cultural Arts Donations 185,407 7,230 127,000 65,637 -64.6% Encampment Resolution Fund 1,300,509 37,190 - 1,337,699 2.9% Habitat Mitigation Fee 10,257 250 - 10,507 2.4% Library and Arts Endowments 259,631 6,650 6,000 260,281 0.3% Library Gifts and Bequests 1,371,003 41,690 455,903 956,790 -30.2% Lighting and Landscaping District 2 5,795,284 912,480 367,500 6,340,264 9.4% Local Cable Infrastructure 418,306 285,940 506,862 197,384 -52.8% Median Maintenance District 242,482 1,378,180 1,409,906 210,756 -13.1% Opioid Settlement Fund 345,933 111,609 103,059 354,483 2.5% Parking In Lieu Fee 1,134,068 27,080 57,120 1,104,028 -2.7% Permanent Local Housing Allocation 385,941 466,244 - 852,185 120.8% Police Asset Forfeiture 297,165 7,770 95,000 209,935 -29.4% Public Safety Grants (236,622) 457,898 169,950 51,326 121.7% Recreation Donations 291,847 34,440 81,200 245,087 -16.0% Rental Assistance 93,108 13,227,900 13,319,728 1,280 -98.6% Senior Donations 289,162 27,500 33,500 283,162 -2.1% Street Lighting Maintenance District 2,553,574 1,069,780 1,176,445 2,446,909 -4.2% Street Tree Maintenance District 265,219 980,200 1,024,573 220,846 -16.7% Tyler Court Apartments 62,820 761,949 652,310 172,459 174.5% Total Special Revenue Funds 34,549,626 21,853,865 21,287,263 35,116,228 1.6% Enterprise Funds Water Operations 22,925,112 50,085,356 58,158,391 14,852,077 -35.2% Recycled Water Operations 242,363 11,121,779 10,814,449 549,693 126.8% Wastewater Operations 13,563,160 25,890,480 33,253,062 6,200,578 -54.3% Solid Waste Management 8,592,952 3,447,940 5,544,246 6,496,646 -24.4% Golf Course 6,880,922 11,343,000 10,762,000 7,461,922 8.4% Total Enterprise Funds 52,204,509 101,888,555 118,532,148 35,560,916 -31.9% Internal Service Funds Workers' Compensation 3,464,729 14,511,420 5,988,115 11,988,034 246.0% Risk Management 1,673,495 7,970,610 7,397,470 2,246,635 34.3% Vehicle Maintenance 724,085 4,062,754 4,012,861 773,978 6.9% Vehicle Replacement 22,488,537 7,217,461 4,598,574 25,107,424 11.7% Information Technology 9,337,072 19,377,057 18,705,537 10,008,592 7.2% Total Internal Service Funds 37,687,918 53,139,302 40,702,557 50,124,663 33.0% Successor Agency Housing Trust Fund 166,840 5,380 10,000 162,220 -2.8% Total Operating Funds 272,998,536$ 415,948,485$ 419,000,413$ 252,446,608$ -7.5% * For the General Fund only, this represents unassigned fund balance. Projected ending fund balance as of June 30, 2025 includes the establishment of an asset replacement reserve and an allocation of $17.5 million. B-25 SCHEDULE OF REVENUE ESTIMATES 2023-24 2024-25 Change as %Difference 2022-23 Estimated Estimated of 2023-24 2023-24 to Revenue Source Actuals Revenue Revenue Estimated 2024-25 General Fund Taxes Property Tax 87,209,996$ 91,773,714$ 94,901,892$ 3.4% 3,128,178$ Sales Tax 56,186,707 58,899,752 59,382,534 0.8%482,782 Transient Occupancy Tax 34,280,239 34,776,940 34,776,940 0.0%- Franchise Tax 7,833,845 8,554,123 8,883,315 3.9%329,192 Business License Tax 6,356,809 6,359,729 6,560,060 3.2%200,331 Transfer Tax 1,367,481 1,624,950 1,676,136 3.2%51,186 Total Taxes 193,235,077 201,989,208 206,180,877 2.1% 4,191,669 Intergovernmental Homeowners Exemption 340,152 248,146 245,000 -1.3%(3,146) Other Intergovernmental 2,055,728 957,466 684,000 -28.6% (273,466) Total Intergovernmental 2,395,880 1,205,612 929,000 -22.9% (276,612) Licenses and Permits Building Permits 2,201,438 2,000,000 2,400,000 20.0%400,000 Other Licenses and Permits 985,067 905,261 973,500 7.5%68,239 Total Licenses And Permits 3,186,505 2,905,261 3,373,500 16.1%468,239 Charges for Services Planning Fees 593,890 773,500 817,000 5.6%43,500 Building Department Fees 950,200 702,500 920,000 31.0%217,500 Engineering Fees 990,363 690,000 872,000 26.4%182,000 Ambulance Fees 4,368,825 7,225,000 7,650,000 5.9%425,000 Recreation Fees 3,127,197 3,488,050 3,459,066 -0.8%(28,984) Other Charges or Fees 1,335,412 1,667,060 1,690,500 1.4%23,440 Total Charges For Services 11,365,887 14,546,110 15,408,566 5.9%862,456 Fines and Forfeitures 402,946 352,550 351,700 -0.2%(850) Income from Investments and Property 7,081,788 7,297,532 7,041,490 -3.5% (256,042) Interdepartmental Charges 5,991,590 6,091,266 5,427,750 -10.9% (663,516) Other Revenue Sources 2,199,856 495,080 348,500 -29.6% (146,580) Total General Fund 225,859,529$ 234,882,619$ 239,061,383$ 1.8% 4,178,764$ * Interest is calculated on an amortized cost basis. B-26 SCHEDULE OF REVENUE ESTIMATES 2023-24 2024-25 Change as %Difference 2022-23 Estimated Estimated of 2023-24 2023-24 to Revenue Source Actuals Revenue Revenue Estimated 2024-25 Special Revenue Funds Affordable Housing Affordable Housing Fees 247,078$ 497,506$ 247,000$ -50.4% (250,506)$ Property Tax - - - 0.0%- Interest Income 787,261 756,678 454,860 -39.9% (301,818) Other Revenue 50,913 10,134 5,000 -50.7%(5,134) Total Affordable Housing 1,085,252 1,264,318 706,860 -44.1% (557,458) Agricultural Mitigation Fee Agricultural Mitigation Fees - - - 0.0%- Interest Income 14,587 26,700 26,060 -2.4%(640) Total Agriculutural Mitigation Fee 14,587 26,700 26,060 -2.4%(640) Buena Vista Channel Maintenance Assessment Fees 82,037 100,000 100,000 0.0%- Interest Income 14,943 36,110 37,290 3.3%1,180 Total Buena Vista Channel Maintenance 96,980 136,110 137,290 0.9%1,180 Citizens' Option for Public Safety State Funding (AB3229)294,013 290,000 280,000 -3.5%(10,000) Interest Income 375 12,500 15,190 21.5%2,690 Total Citizens' Option For Public Safety 294,388 302,500 295,190 -2.4%(7,310) Community Activity Grants Interest Income 11,861 26,400 27,990 6.0%1,590 Total Community Activity Grants 11,861 26,400 27,990 6.0%1,590 Community Development Block Grant Federal Grant 508,874 545,490 548,215 0.5%2,725 Interest Income 126,844 12,269 5,000 -59.3%(7,269) Other Revenue 503,972 429,206 30,000 -93.0% (399,206) Total Community Dev. Block Grant 1,139,690 986,965 583,215 -40.9% (403,750) Continuum of Care Federal Grant - 232,972 235,280 1.0%2,308 Total Cultural Arts Donations - 232,972 235,280 1.0%2,308 Cultural Arts Donations Donations 25,000 35,000 - -100.0%(35,000) Interest Income 5,014 7,900 7,230 -8.5%(670) Total Cultural Arts Donations 30,014 42,900 7,230 -83.2%(35,670) B-27 SCHEDULE OF REVENUE ESTIMATES 2023-24 2024-25 Change as %Difference 2022-23 Estimated Estimated of 2023-24 2023-24 to Revenue Source Actuals Revenue Revenue Estimated 2024-25 Special Revenue Funds - Continued Encamptment Resolution Fund State Grant - 2,358,409 - -100.0% (2,358,409) Interest Income - 36,100 37,190 3.0%1,090 Total Community Dev. Block Grant - 2,394,509 37,190 -98.5% (2,357,319) Habitat Mitigation Fee Mitigation Fees 57,082 10,126 - -100.0%(10,126) Interest Income 744 100 250 150.0%150 Total Habitat Mitigation Fee 57,826 10,226 250 -97.6%(9,976) Library And Arts Endowment Fund Interest Income 2,971 6,300 6,650 5.6%350 Total Library And Arts Endowment Fund 2,971 6,300 6,650 5.6%350 Library Gifts/Bequests Gifts and Bequests 210,859 74,000 - -100.0%(74,000) Interest Income 19,895 40,700 41,690 2.4%990 Total Library Gifts/Bequests 230,754 114,700 41,690 -63.7%(73,010) Lighting And Landscaping District 2 Assessment Fees 695,133 761,100 775,700 1.9%14,600 Interest Income 35,857 130,211 136,780 5.0%6,569 Total Lighting And Landscaping Dist. 2 730,990 891,311 912,480 2.4%21,169 Local Cable Infrastructure Fund Cable Fees 284,652 275,000 275,000 0.0%- Interest Income 12,653 10,000 10,940 9.4%940 Total Local Cable Infrastructure Fund 297,305 285,000 285,940 0.3%940 Median Maintenance Assessment Fees 348,486 365,000 365,000 0.0%- Other 932,346 1,043,661 1,013,180 -2.9%(30,481) Total Median Maintenance 1,280,832 1,408,661 1,378,180 -2.2%(30,481) Opioid Settlement Fund Settlements - - 103,059 0.0%103,059 Other Revenue (9,874) 7,900 8,550 8.2%650 Total Opioid Settlement (9,874) 7,900 111,609 1312.8%103,709 Parking In Lieu Parking In Lieu Fees - - - 0.0%- Interest Income 14,577 25,900 27,080 4.6%1,180 Total Parking In Lieu 14,577 25,900 27,080 4.6%1,180 Permanent Local Housing Allocation State Grant - 696,260 466,244 -33.0% (230,016) Total Police Grants - 696,260 466,244 -33.0% (230,016) Police Asset Forfeiture Asset Forfeitures - 171,056 - -100.0% (171,056) Interest Income 4,640 5,700 7,770 36.3%2,070 Total Police Asset Forfeiture 4,640 176,756 7,770 -95.6% (168,986) B-28 SCHEDULE OF REVENUE ESTIMATES 2023-24 2024-25 Change as %Difference 2022-23 Estimated Estimated of 2023-24 2023-24 to Revenue Source Actuals Revenue Revenue Estimated 2024-25 Special Revenue Funds - Continued Public Safety Grants Federal Grant 157,698 250,337 287,948 15.0%37,611 State Grant 24,170 40,520 169,950 319.4%129,430 Total Police Grants 181,868 290,857 457,898 57.4%167,041 Recreation Donations Donations 62,489 26,600 26,600 0.0%- Interest Income 3,189 7,500 7,840 4.5%340 Total Recreation Donations 65,678 34,100 34,440 1.0%340 Rental Assistance Federal Grant 8,948,915 10,091,706 10,519,083 4.2%427,377 Other Revenue 1,779,737 2,135,943 2,708,817 26.8%572,874 Total Rental Assistance 10,728,652 12,227,649 13,227,900 8.2% 1,000,251 Senior Donations Donations 6,628 5,000 5,000 0.0%- Other Revenue 13,915 15,000 15,000 0.0%- Interest Income 4,215 7,000 7,500 7.1%500 Total Senior Donations 24,758 27,000 27,500 1.9%500 Street Lighting Assessment Fees 738,313 740,000 740,000 0.0%- Other Revenue 200,312 254,750 259,400 1.8%4,650 Interest Income 29,109 62,758 70,380 12.2%7,622 Total Street Lighting 967,734 1,057,508 1,069,780 1.2%12,272 Street Tree Maintenance Assessment Fees 470,928 470,000 470,000 0.0%- Other Revenue 436,065 542,481 510,200 -6.0%(32,281) Total Street Tree Maintenance 906,993 1,012,481 980,200 -3.2%(32,281) Tyler Court Apartments Rental Income 676,682 689,010 757,017 9.9%68,007 Other Revenue 187,863 5,885 4,932 -16.2%(953) Total Tyler Court Apartments 864,545 694,895 761,949 9.7%67,054 Total Special Revenue Funds 19,023,021$ 24,380,878$ 21,853,865$ -10.4% (2,527,013)$ B-29 SCHEDULE OF REVENUE ESTIMATES 2023-24 2024-25 Change as %Difference 2022-23 Estimated Estimated of 2023-24 2023-24 to Revenue Source Actuals Revenue Revenue Estimated 2024-25 Enterprise Funds Water Operations Water Sales 24,824,736$ 29,000,000$ 30,900,000$ 6.6% 1,900,000$ Ready-to-Serve charge 13,555,227 13,700,000 14,100,000 2.9%400,000 Property Tax 5,108,843 2,811,856 3,105,800 10.5%293,944 New Account Charges 94,990 110,064 110,000 -0.1%(64) Back-Flow Program Fees 168,414 168,800 170,000 0.7%1,200 Penalty Fees 360,513 377,200 378,500 0.3%1,300 Interest Income 627,447 733,976 660,456 -10.0%(73,520) Engineering Overhead 147,357 150,000 156,000 4.0%6,000 Service Connection Fees 27,947 34,600 35,000 1.2%400 Other Revenue 2,395,251 464,500 469,600 1.1%5,100 Total Water Operations 47,310,725 47,550,996 50,085,356 5.3% 2,534,360 Recycled Water Operations Water Sales 5,672,065 6,500,000 7,400,000 13.9%900,000 Ready-to-Serve charge 1,357,703 1,400,000 1,450,000 3.6%50,000 Property Tax - 1,703,964 1,878,000 10.2%174,036 Interest Income 127,903 (258,549) 2,000 -100.8%260,549 Other Revenue 359,817 376,182 391,779 4.2%15,597 Total Recycled Water Operations 7,517,488 9,721,597 11,121,779 14.4% 1,400,182 Wastewater Operations Service Charges 19,484,190 22,000,000 25,200,000 14.6% 3,200,000 Misc. Sewer 5,821 6,000 6,000 0.0%- Engineering Overhead 131,964 180,000 187,200 4.0%7,200 Penalty Fees 126,455 138,000 135,000 -2.2%(3,000) Interest Income 121,420 279,900 288,780 3.2%8,880 Other Revenue 811,083 72,000 73,500 2.1%1,500 Total Wastewater Operations 20,680,933 22,675,900 25,890,480 14.2% 3,214,580 Solid Waste Management Recycling Fees (AB939)878,003 846,000 860,000 1.7%14,000 Penalty Fees 1,461 - - 0.0%- Trash Surcharge 1,365,561 1,375,000 1,400,000 1.8%25,000 Interest Income 226,378 234,500 221,440 -5.6%(13,060) Other Revenue 1,094,313 956,029 966,500 1.1%10,471 Total Solid Waste Management 3,565,716 3,411,529 3,447,940 1.1%36,411 Golf Course Operations Charges for Services 10,966,531 10,781,677 11,134,000 3.3%352,323 Interest Income (38,049) 138,300 122,000 -11.8%(16,300) Other Revenue 106,093 84,801 87,000 2.6%2,199 Total Golf Course Operations 11,034,575 11,004,778 11,343,000 3.1%338,222 Total Enterprise Funds 90,109,437$ 94,364,800$ 101,888,555$ 8.0% 7,523,755$ B-30 SCHEDULE OF REVENUE ESTIMATES 2023-24 2024-25 Change as %Difference 2022-23 Estimated Estimated of 2023-24 2023-24 to Revenue Source Actuals Revenue Revenue Estimated 2024-25 Internal Service Funds Workers' Compensation Interdepartmental Charges 5,173,980$ 5,908,510$ 6,883,620$ 16.5%975,110$ Interest Income (187,710) 557,700 627,800 12.6%70,100 Other Revenue 7,622,896 1,950,000 7,000,000 259.0% 5,050,000 Total Workers' Compensation 12,609,166 8,416,210 14,511,420 72.4% 6,095,210 Risk Management Interdepartmental Charges 3,889,896 7,069,660 7,746,820 9.6%677,160 Interest Income 103,181 124,000 179,790 45.0%55,790 Other Revenue 1,057,017 5,054,000 44,000 -99.1% (5,010,000) Total Risk Management 5,050,094 12,247,660 7,970,610 -34.9% (4,277,050) Vehicle Maintenance Interdepartmental Charges 3,175,057 3,605,863 3,998,114 10.9%392,251 Interest Income (29,190) 19,700 20,640 4.8%940 Other Revenue 1,442,228 21,000 44,000 109.5%23,000 Total Vehicle Maintenance 4,588,095 3,646,563 4,062,754 11.4%416,191 Vehicle Replacement Interdepartmental Charges 3,637,176 3,948,539 5,947,531 50.6% 1,998,992 Interest Income 119,778 510,600 559,930 9.7%49,330 Other Revenue 394,839 195,595 710,000 263.0%514,405 Total Vehicle Replacement 4,151,793 4,654,734 7,217,461 55.1% 2,562,727 Information Technology Interdepartmental Charges 16,406,796 17,123,775 19,149,027 11.8% 2,025,252 Interest Income 26,897 189,700 228,030 20.2%38,330 Other Revenue 1,049,123 3,636 - -100.0%(3,636) Total Information Technology 17,482,816 17,317,111 19,377,057 11.9% 2,059,946 Total Internal Service Funds 43,881,964$ 46,282,278$ 53,139,302$ 14.8% 6,857,024$ Trust Funds Sucssessor Agency Housing Fund Property Tax Increment 949,059 - - 0.0%- Interest Income 116,535 44,618 5,380 -87.9%(39,238) Total Successor Agency Housing Fund 1,065,594 44,618 5,380 -87.9%(39,238) Total Trust Funds 1,065,594$ 44,618$ 5,380$ -87.9%(39,238)$ Total Operating Funds 379,939,545$ 399,955,193$ 415,948,485$ 4.0% 15,993,292$ B-31 S CHEDULE OF BUDGET EXPENDITURES 2023-24 Change as % 2021-22 2022-23 Estimated 2023-24 2024-25 of 2023-24 Department Actuals Actuals Expenditures Budget Budget Budget General Fund Policy And Leadership Group City Council 534,144$ 591,632$ 575,508$ 607,078$ 599,047$ -1.3% City Attorney 2,081,883 1,907,521 2,114,096 2,115,596 2,179,705 3.0% City Clerk 1,296,312 1,273,114 1,286,920 1,274,455 1,273,604 -0.1% City Manager 2,013,122 2,045,614 2,145,973 2,184,823 2,105,683 -3.6% City Treasurer 243,289 147,911 207,750 279,149 279,522 0.1% Communication & Engagement 2,037,551 2,385,710 2,124,244 1,953,098 2,010,091 2.9% Total Policy And Leadership Group 8,206,301 8,351,502 8,454,491 8,414,199 8,447,652 0.4% Administrative Services Administration 706,556 726,297 740,750 784,107 796,196 2% Finance 5,623,094 5,396,772 5,500,000 5,323,368 5,631,964 5.8% Human Resources 4,388,148 4,513,351 4,887,105 5,029,995 5,136,218 2.1% Innovation & Economic Development 1,334,163 2,392,664 2,807,000 2,608,489 891,866 -65.8% Total Administrative Services 12,051,961 13,029,084 13,934,855 13,745,959 12,456,244 -9.4% Community Services Community Services Administration 663,579 646,731 625,000 585,411 592,261 1.2% Community Development 12,064,408 14,220,499 10,019,000 11,012,958 10,998,825 -0.1% Housing & Homeless Services - - 2,126,155 2,765,195 3,232,287 17% Library & Cultural Arts 13,024,082 13,290,637 12,449,605 13,637,285 14,522,844 6.5% Parks & Recreation 19,251,458 20,813,176 21,730,303 21,055,565 22,759,082 8.1% Total Community Services 45,003,527 48,971,043 46,950,063 49,056,414 52,105,299 6.2% Public Safety Fire 33,684,622 35,261,847 41,477,000 37,882,886 41,793,630 10.3% Police 50,824,125 51,115,854 59,588,010 55,615,155 60,193,850 8.2% Total Public Safety 84,508,747 86,377,701 101,065,010 93,498,041 101,987,480 9.1% Public Works Public Works Administration 1,760,326 1,442,021 1,530,409 1,562,272 1,533,038 -1.9% Construction Management & Inspection 2,909,255 3,092,730 2,910,543 3,257,906 3,068,292 -5.8% Environmental Sustainability 1,238,207 1,205,943 1,130,727 1,178,783 1,210,630 2.7% Fleet & Facilities 6,297,998 6,812,114 7,432,121 7,497,115 7,191,930 -4.1% Transportation 8,048,352 10,028,265 10,306,133 9,732,215 10,741,202 10.4% Total Public Works 20,254,138 22,581,073 23,309,933 23,228,291 23,745,092 2.2% Miscellaneous Non-Departmental Expenditures Community Contributions & Village trenching - - - 5,220,000 - -100.0% COVID-related 177,677 40,842 44,000 - - - Dues & Subscriptions 75,069 77,746 80,000 80,000 90,000 12.5% Legal Services 519,683 540,090 300,000 750,000 750,000 0.0% Other Miscellaneous Expenditures 50,787 52,277 60,000 100,000 100,000 0.0% Personnel Related 155,595 122,499 130,000 1,637,000 1,900,000 16.1% Professional Services 33,980 44,148 45,000 39,700 39,000 -1.8% Property Tax & Other Administration 725,588 764,180 750,000 750,000 800,000 6.7% Vacancy savings - - - (2,000,000) (2,000,000) 0.0% Total Miscellaneous Non-Departmental Expenditures 1,738,379 1,641,782 1,409,000 6,576,700 1,679,000 -74.5% B-32 SCHEDULE OF BUDGET EXPENDITURES 2023-24 Change as % 2021-22 2022-23 Estimated 2023-24 2024-25 of 2023-24 Department Actuals Actuals Expenditures Budget Budget Budget General Fund - Continued Transfers Transfer to General Capital Construction Fund 13,283,056$ 3,956,000$ 11,600,000$ 11,600,000$ 18,579,226$ 0.0% Transfer to Infrastructure Replacement Fund 283,000 3,956,000 4,200,000 4,200,000 4,779,226 0.0% Transfer to Technology Investment Capital Fund 10,656,000 3,956,000 4,200,000 4,200,000 4,779,226 0.0% Transfer To LLD#1 (Medians & Trees)1,390,000 1,400,000 1,570,000 1,570,000 1,500,000 0.0% Transfer To Storm Water Program 322,000 332,000 340,000 340,000 350,000 0.0% Transfer to Fleet Maintenance - 1,400,000 - - - - Transfer to Fleet Replacement - - - - 560,000 - Transfer to Risk Management - 1,000,000 5,000,000 - - -100.0% Transfer to Workers' Compensation Fund - 8,208,252 1,300,000 - 7,000,000 -100.0% Other Miscellaneous Transfers 993,748 - - - - -Total Transfers 26,927,804 24,208,252 28,210,000 21,910,000 37,547,678 71.4% Total Miscellaneous Non-Departmental 28,666,183 25,850,034 29,619,000 28,486,700 39,226,678 37.7% Subtotal General Fund 198,690,857 205,160,437 223,333,352 216,429,604 237,968,445 10.0% City Council Contingency Account - - - 500,000 500,000 0.0% Total General Fund 198,690,857$ 205,160,437$ 223,333,352$ 216,929,604$ 238,468,445$ 9.9% Special Revenue Funds Affordable Housing 237,513$ 542,229$ 364,206$ 668,530$ 631,917$ -5.5% Agricultural Mitigation Fee - 38,220 195,118 - - - Buena Vista Channel Maintenance 75,104 127,686 251,358 195,245 195,245 0.0% Citizens' Option For Public Safety 181,912 203,884 280,000 295,298 295,830 0.2% Community Activity Grants - - 5,000 30,000 30,000 0.0% Community Development Block Grant 1,429,464 2,298,679 970,000 702,305 548,215 -21.9% Continuum of Care - - 232,972 - - - Cultural Arts Donations 37,840 42,228 179,350 148,750 127,000 -14.6% Encampment Resolution Fund - - 1,094,000 - - - Habitat Mitigation Fee 14,535 22,365 - - - - Library And Arts Endowment Fund 480 2,947 6,000 6,000 6,000 0.0% Library Gifts/Bequests 137,515 256,481 410,600 462,785 455,903 -1.5% Lighting And Landscaping District 2 258,171 298,032 354,136 367,500 367,500 0.0% Local Cable Infrastructure Fund 403,843 402,240 568,020 538,956 506,862 -6.0% Median Maintenance 1,067,645 1,333,680 1,427,715 1,396,580 1,409,906 1.0% Opioid Settlement Fund - - 15,000 21,466 103,059 380.1% Parking In Lieu 49,674 53,000 - 56,000 57,120 2.0% Permanent Local Housing Allocation - - 310,319 1,119,126 - -100.0% Police Asset Forfeiture 12,228 51,086 72,783 75,000 95,000 26.7% Public Safety Grants 78,602 270,205 456,680 - 169,950 - Recreation Donations 38,755 59,193 52,570 81,200 81,200 0.0% Rental Assistance 10,081,418 10,854,742 12,205,365 11,339,700 13,319,728 17.5% Senior Donations 37,796 39,128 23,238 33,500 33,500 0.0% Street Lighting 927,419 977,401 1,202,937 1,100,077 1,176,445 6.9% Street Tree Maintenance 816,583 985,124 924,191 1,004,763 1,024,573 2.0% Tyler Court Apartments 915,040 893,040 730,800 604,523 652,310 7.9% Total Special Revenue Funds 16,801,537$ 19,751,590$ 22,332,358$ 20,247,304$ 21,287,263$ 5.1% B-33 SCHEDULE OF BUDGET EXPENDITURES 2023-24 Change as % 2021-22 2022-23 Estimated 2023-24 2024-25 of 2023-24 Department Actuals Actuals Expenditures Budget Budget Budget Enterprise Funds Water Operations 44,316,249$ 47,094,688$ 55,109,813$ 54,759,803$ 58,158,391$ 6.2% Recycled Water Operations 9,782,992 10,188,608 10,938,070 11,849,122 10,814,449 -8.7% Wastewater Operations 12,909,801 15,832,059 24,180,157 23,068,138 33,253,062 44.2% Solid Waste Management 4,744,618 5,629,980 5,367,260 5,950,634 5,544,246 -6.8% Golf Course Operations 8,345,328 9,162,350 9,304,598 10,121,000 10,762,000 6.3% Total Enterprise Funds 80,098,988$ 87,907,685$ 104,899,898$ 105,748,697$ 118,532,148$ 12.1% Internal Service Funds Workers' Compensation 6,980,247$ 13,491,907$ 5,161,119$ 5,157,892$ 5,988,115$ 16.1% Risk Management 4,519,731 8,711,568 6,726,887 6,718,232 7,397,470 10.1% Vehicle Maintenance 3,521,566 3,924,184 3,805,991 3,696,339 4,012,861 8.6% Vehicle Replacement 3,756,451 1,645,175 3,045,488 1,068,564 4,598,574 330.4% Information Technology 12,407,644 16,157,475 17,357,258 16,637,475 18,705,537 12.4% Total Internal Service Funds 31,185,639$ 43,930,309$ 36,096,743$ 33,278,502$ 40,702,557$ 22.3% Trust Funds Successor Agency Housing Fund 1,020,799$ 1,021,473$ 1,008,833$ 1,059,500$ 10,000$ -99.1% Total Trust Funds 1,020,799$ 1,021,473$ 1,008,833$ 1,059,500$ 10,000$ -99.1% Total Operating Funds 327,797,820$ 357,771,494$ 387,671,184$ 377,263,607$ 419,000,413$ 11.1% B-34 C-1 PUBLIC SAFETY The City of Carlsbad’s public safety services create and maintain a safe community for all who live, work and play in our city. This important work is carried out by the dedicated men and women of the Police and Fire departments. Highly specialized divisions cover all aspects of modern law enforcement and fire services including response and recovery, emergency medical, marine safety, community risk reduction, and emergency management. We are proud to serve the Carlsbad community, working in partnership to deliver on the city mission at the highest possible level every day. Michael Calderwood Fire Chief 442-339-2141 FireMail@carlsbadca.gov Christie Calderwood Chief of Police 442-339-2100 police@carlsbadca.gov C-2 C-3 PUBLIC SAFETY | FIRE DEPARTMENT: SUMMARY FIRE • Fire Administration • Emergency Operations • Community Risk Reduction 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 16,749,689$ 18,669,265$ 20,003,988$ 21,000,137$ Retirement Benefits 5,793,156 5,094,924 5,913,010 6,564,580 Health Insurance 1,881,487 2,011,784 2,353,393 2,448,860 Other Personnel Expenses 1,614,754 1,711,515 1,921,247 2,161,317 Personnel Services Subtotal 26,039,086 27,487,488 30,191,638 32,174,894 Operating Expenses Professional & Contract Services 1,594,756 1,784,300 1,852,334 2,381,104 Supplies & Materials 962,942 981,131 1,052,766 1,110,726 Repair & Maintenance 69,368 77,191 74,450 74,450 Interdepartmental Charges 3,737,603 4,199,237 4,448,981 5,849,873 Other Operating Expenses 218,457 244,169 284,183 297,133 Capital Outlay 1,062,410 488,331 - 75,400 Operating Expenses Subtotal 7,645,536 7,774,359 7,712,714 9,788,686 TOTAL EXPENDITURES 33,684,622$ 35,261,847$ 37,904,352$ 41,963,580$ Full Time Positions 111.00 123.00 124.00 124.00 Hourly/FTE Positions 10.00 11.50 10.50 10.50 C-4 PUBLIC SAFETY | FIRE DEPARTMENT: ADMINISTRATION Account: 0012200 0012210 0012251 0012253 Fund: General ABOUT Fire Administration provides leadership, strategic planning and organizational support for the entire department. SERVICES • Administer directives, policies and procedures • Compile data and analyze business intelligence • Monitor budgets, contracts, procurement, payroll and accounting processes • Oversee mutual aid reimbursement • Research and support grant programs and opportunities • Manage public records requests and document retention • Support employee performance and compliance processes and records • Establish and maintain administrative tools, resources and guides 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages $612,802 $565,582 $609,142 $646,716 Retirement Benefits 210,682 165,912 177,943 210,378 Health Insurance 82,573 64,703 87,273 59,756 Other Personnel Expenses 79,998 72,001 76,155 85,740 Personnel Services Subtotal 986,055 868,198 950,513 1,002,590 Operating Expenses Professional & Contract Services 1,195,366.00 1,427,044 1,396,750 1,828,250 Supplies & Materials 70,511 46,691 82,299 74,799 Repair & Maintenance 2,434 1,584 650 650 Interdepartmental Charges 3,041,512 3,462,991 3,511,279 4,630,208 Other Operating Expenses 17,783 9,555 500 1,000 Capital Outlay 0 - - - Operating Expenses Subtotal 4,327,606 4,947,865 4,991,478 6,534,907 TOTAL EXPENDITURES $5,313,661 $5,816,063 $5,941,991 $7,537,497 Full Time Positions 5.00 4.00 5.00 5.00 Hourly/FTE Positions 0.50 0.50 0.50 0.50 C-5 RECENT ACCOMPLISHMENTS • Finalized Public Safety Element of the General Plan to help identify and mitigate community safety risks • Developed Fire Operations Intelligence System to make informed and timely deployment decisions using dispatch data for real-time insights, visualizations and performance measures • Managed Fire Administration renovation and relocation project to enhance workspace efficiency, technological capabilities and security measures • Implemented administrative realignment strategies to improve efficiency and effectiveness across department • Administered new Public Provider Ground Emergency Medical Transportation Intergovernmental Transfer reimbursement program GOALS • Adopt best practice-based response time policy according to risk type • Identify and acquire property for permanent Fire Station 7 • Participate in mandated Medicare Ground Ambulance Data Collection System • Create tracking database and replacement schedule for major department assets C-6 PUBLIC SAFETY | FIRE DEPARTMENT: EMERGENCY OPERATIONS Account: 0012220-29 0012250 0012252 Fund: General ABOUT The Emergency Operations Bureau safeguards life, property and the environment through 24-hour fire suppression, rescue, marine safety, disaster mitigation and emergency medical services. SERVICES • Extinguish structure and wildland fires • Deploy mutual aid assistance across the state • Organize response and support operations for natural or man-made disasters • Investigate and mitigate hazardous materials • Deliver emergency medical and community health services • Perform high-risk technical search and rescues • Deploy SWAT medics to support law enforcement agencies • Provide lifeguard services at North Beach and Agua Hedionda Lagoon • Develop and supervise employee health and wellness programs • Coordinate Fire Explorer Program and fire service career development opportunities 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages $14,834,351 $16,750,505 $18,019,888 $18,922,448 Retirement Benefits 5,100,171 4,503,631 5,261,781 5,814,253 Health Insurance 1,614,927 1,780,512 2,069,660 2,198,108 Other Personnel Expenses 1,351,310 1,471,474 1,683,577 1,894,433 Personnel Services Subtotal 22,900,759 24,506,122 27,034,906 28,829,242 Operating Expenses Professional & Contract Services 197,349 163,249 206,504 303,674 Supplies & Materials 850,264 909,110 911,017 978,277 Repair & Maintenance 66,849 75,317 73,800 73,800 Interdepartmental Charges 236,381 333,131 493,664 794,000 Other Operating Expenses 192,849 216,953 263,183 273,633 Capital Outlay 1,062,410 488,331 0 75,400 Operating Expenses Subtotal 2,606,102 2,186,091 1,948,168 2,498,784 TOTAL EXPENDITURES $25,506,861 $26,692,213 $28,983,074 $31,328,026 Full Time Positions 94.00 107.00 107.90 108.00 Hourly/FTE Positions 8.50 10.50 9.50 9.50 C-7 RECENT ACCOMPLISHMENTS • Executed Data Sharing Agreement with the County of San Diego to protect the collection, use and disclosure of sensitive emergency medical patient data • Deployed automated controlled narcotic medication tracking and reporting system to comply more quickly and accurately with Drug Enforcement Administration regulations • Replaced ambulance gurneys with electrically powered lifting and loading capabilities to increase personnel and patient safety • Started referral program to improve healthcare access for homeless population • Utilized opioid settlement funds to support community health • Received designation as Regional Task Force 13 by California Office of Emergency Services • Installed Hi-Lo warning sirens in fire apparatus to assist in major emergencies requiring immediate evacuation • Developed Fire Station Master Plan to identify and prioritize current and future fire station needs GOALS • Attain United States Lifeguard Association Accreditation to demonstrate compliance with national standards for open water lifeguard training programs • Update Local Agency Formation Commission Municipal Service Review which evaluates adequacy and efficiency of fire and emergency medical services provided by a public agency • Update Insurance Services Office classification which rates fire response and mitigation capabilities and helps insurance companies establish fire insurance premiums for residential and commercial properties • Migrate mobile data computers to iPads on all fire apparatus to increase coordination, improve safety and boost situational awareness for emergency response personnel • Increase community and city staff trainings for CPR and overdose recognition and response to improve awareness and capabilities during emergencies Performance Measure CY 2023 Actual CY 2024 Estimated CY 2025 Projected Benchmark Related Strategic Plan Goal Fire turnout, 90th percentile time 01:49 01:50 01:50 ≤ 2 minutes, at least 90% of the time Quality of Life & Safety EMS patient satisfaction rating 96.7% 98.0% 98.0% > 95% Quality of Life & Safety C-8 PUBLIC SAFETY | FIRE DEPARTMENT: COMMUNITY RISK REDUCTION Account: 0012235 0012240-0012243 0012260 Fund: General ABOUT The Community Risk Reduction Bureau mitigates all types of hazardous conditions and ensures incident response readiness. SERVICES • Oversee Hazard Reduction Program to identify and abate brush fire hazards • Respond to inquiries and complaints concerning hazardous conditions • Investigate cause and origin for suspicious or large loss fires • Review code compliance on construction plan submittals • Complete construction inspections for new buildings and remodeling projects • Conduct annual inspections of schools, care facilities, hotels, motels and apartment complexes • Install and test smoke alarms in Carlsbad homes • Coordinate outreach and education programs promoting fire safety tips and prevention • Disseminate timely and accurate department information through various media platforms • Provide leadership to community organizations to help ensure readiness to prevent, protect against, mitigate, respond to and recover from all threats and hazards • Direct, conduct and implement city-level emergency plans, programs, trainings and exercises 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages $1,302,536 $1,353,178 $1,374,958 $1,430,973 Retirement Benefits 482,303 425,381 473,286 539,949 Health Insurance 183,987 166,569 196,460 190,996 Other Personnel Expenses 183,446 168,040 161,515 181,144 Personnel Services Subtotal 2,152,272 2,113,168 2,206,219 2,343,062 Operating Expenses Professional & Contract Services 202,041 194,007 249,080 249,180 Supplies & Materials 42,167 25,330 59,450 57,650 Repair & Maintenance 85 290 0 - Interdepartmental Charges 459,710 403,115 444,038 425,665 Other Operating Expenses 7,825 17,661 20,500 22,500 Capital Outlay 0 0 - - Operating Expenses Subtotal 711,828 640,403 773,068 754,995 TOTAL EXPENDITURES $2,864,100 $2,753,571 $2,979,287 $3,098,057 Full Time Positions 12.00 12.00 11.10 11.00 Hourly/FTE Positions 1.00 0.50 0.50 0.50 C-9 • Coordinate multi-department citywide emergency operations • Support large-scale emergency response operations through the Emergency Operations Center RECENT ACCOMPLISHMENTS • Launched FireSafe Carlsbad to provide cost-free inspections and fire safety training programs for businesses with commercial cooking operations • Created educational outreach programs to improve lithium-ion battery safety awareness • Established public information office to facilitate department communications and media relations GOALS • Adopt citywide Fire Hazard Severity Zone map by ordinance • Update City Landscape Manual to incorporate new fuel modification guidelines which help reduce the threat of wildfire by increasing defensible space between development and nature • Develop Memorandum of Understanding with the County of San Diego to conduct annual fire inspections at the Carlsbad-McClellan Airport • Deploy new regional mass notification system to initiate evacuations and disseminate information throughout the community during an emergency • Relocate Fire & Life Safety Division to the Police & Fire Headquarters • Manage Emergency Operations Center renovation project to include structural and technological enhancements Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Percentage compliance with Senate Bill 1205- mandated inspections 100% 100% 100% 100% Quality of Life & Safety Percentage of fire plan reviews conducted within 10 days of submittal 30% 75% 75% 90% Quality of Life & Safety C-10 PUBLIC SAFETY | POLICE DEPARTMENT: SUMMARY POLICE • Administration, Police Grants & Asset Forfeiture • Field Operations • Support Operations • Administrative Support Operations • Professional Standards & Services 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 24,040,885$ 26,005,243$ 28,351,946$ 28,982,917$ Retirement Benefits 9,216,797 7,743,031 8,815,694 9,579,103 Health Insurance 2,459,113 2,464,982 2,902,722 3,142,310 Other Personnel Expenses 3,022,563 3,447,941 4,198,805 4,793,736 Personnel Services Subtotal 38,739,358 39,661,197 44,269,167 46,498,066 Operating Expenses Professional & Contract Services 1,723,964 1,596,390 1,688,452 1,946,442 Supplies & Materials 902,857 723,324 444,505 534,475 Repair & Maintenance 208,560 592,601 260,425 236,050 Interdepartmental Charges 7,432,859 7,757,684 8,678,004 10,374,176 Other Operating Expenses 597,502 602,715 644,100 622,705 Capital Outlay 1,491,767 707,118 800 372,766 Operating Expenses Subtotal 12,357,509 11,979,832 11,716,286 14,086,614 TOTAL EXPENDITURES 51,096,867$ 51,641,029$ 55,985,453$ 60,584,680$ General Fund 50,824,125 51,115,854 55,615,155 60,193,850 Special Revenue Fund 272,742 525,175 370,298 390,830 TOTAL FUNDING 51,096,867$ 51,641,029$ 55,985,453$ 60,584,680$ Full Time Positions 186.00 187.00 187.00 187.00 Hourly/FTE Positions 2.00 3.18 2.18 2.18 C-11 PUBLIC SAFETY | POLICE DEPARTMENT: ADMINISTRATION, POLICE GRANTS & ASSET FORFEITURE Account: 0012110 121-122 123 124 Fund: General Special Revenue-Asset Forfeiture Special Revenue-COPS Fund Special Revenue-Public Safety Grants ABOUT This division develops and administers programs that support the city’s and the Police Department’s statement of values in a manner responsive to the city and its residents. This division establishes policies and long-range plans to meet department goals and city needs. Administration is also responsible for police grants, which includes federal and state asset forfeiture, the Citizens’ Option for Public Safety, the Justice Assistance Grant, the Urban Areas Security Initiatives Program and the Office of Traffic Safety. SERVICES • Develop and manage programs that reduce crime, encourage resident engagement and improve community safety 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 1,065,140$ 1,124,323$ 1,083,776$ 1,099,834$ Retirement Benefits 369,494 305,971 346,556 385,711 Health Insurance 87,122 90,929 99,008 154,254 Other Personnel Expenses 116,424 131,169 176,223 201,432 Personnel Services Subtotal 1,638,180 1,652,392 1,705,563 1,841,231 Operating Expenses Professional & Contract Services 886,315 862,989 886,000 907,600 Supplies & Materials 60,711 86,279 78,000 152,500 Repair & Maintenance 2,285 371,381 54,000 400 Interdepartmental Charges 3,964,449 4,276,889 4,799,503 5,608,031 Other Operating Expenses 327,630 309,729 369,500 359,500 Capital Outlay 1,105,269 180,698 800 - Operating Expenses Subtotal 6,346,659 6,087,965 6,187,803 7,028,031 TOTAL EXPENDITURES 7,984,839$ 7,740,357$ 7,893,366$ 8,869,262$ General Fund 7,712,097 7,215,182 7,523,068 8,478,432 Special Revenue Fund 272,742 525,175 370,298 390,830 TOTAL FUNDING 7,984,839$ 7,740,357$ 7,893,366$ 8,869,262$ Full Time Positions 7.00 8.00 8.00 8.00 Hourly/FTE Positions 0.00 0.00 0.00 0.00 C-12 • Assist staff with individual and team development • Provide support to divisions to assist with meeting goals • Respond to residents’ concerns, City Council inquiries and public records requests • Use grants to purchase police equipment, supplement staffing costs and assist with training RECENT ACCOMPLISHMENTS • Began final phase of Police & Fire Headquarters remodel • Conducted two Police Citizens Academy sessions and one city Citizens Academy • Established the Community-Police Engagement Commission, with all Commissioners working on completing the first year of requirements for their seated positions • Completed an evaluation of department response times for calls for service in an effort to provide the highest level of service • Used social media to enhance transparency within the Police Department • Purchased replacement taser devices to outfit officers and rangers • Expanded the E-Citation program from being in the Traffic Division to now being department wide • Created a Training Sergeant position to provide consistency in training scheduling and coordination and employee onboarding, as well as to enhance and formalize our current training practices from each training specialty • Planned a survey with the community regarding trust in the Police Department • Used the Citizens’ Option for Public Safety grant to supplement staffing costs • Used the Justice Assistance Grant to purchase traffic enforcement equipment and narcotic detection canine training • Used the Homeland Security Grant to purchase radio batteries and custom active shooter trauma kits • Used the Urban Areas Security Initiatives Program to train personnel in close quarters clearance • Used the Office of Traffic Safety Grant to organize DUI/DL checkpoints, conduct DUI saturation patrols, and purchase e-citation printers, portable light towers and bicycle helmets to distribute to community members • Used the Alcoholic Beverage Control Grant to expand the department’s efforts in addressing alcohol related problems with licensed establishments and purchase equipment • Used the Officer Wellness and Mental Health Grant Program to purchase new gym equipment GOALS • Respond to a growing number of calls for service involving mental crisis in a manner consistent with crisis management and de-escalation best practices • Use more innovative technology to provide the most efficient and effective services • Work cross-departmentally with city staff who specialize in data and innovation to increase accuracy, efficiency and transparency in the department’s data • Research innovative technology that will assist in building a real-time crime center • Continue to seek grant funding for necessary equipment • Continue to collaborate with the Fire Department on grant management • Continue to procure items or services for the Officer Wellness and Mental Health Grant Program to support sworn personnel C-13 PUBLIC SAFETY | POLICE DEPARTMENT: FIELD OPERATIONS Account: 0012120 0012123-2125 0012127-2129 Fund: General ABOUT The Field Operations Division includes patrol, canines, SWAT, lagoon patrol and police rangers. SERVICES • Respond to calls for emergency and non-emergency services • Utilize new and existing resources to address complaints and quality of life issues • Provide emergency services, preventative patrol, traffic enforcement and special enforcement in the community • Utilize de-escalation tactics during criminal and mental health scenarios to safely resolve critical incidents • Staff major public events in the city with Patrol and SWAT team members to respond to immediate, life-threatening emergencies • Conduct field interviews and take reports at incidents like crimes, arrests and traffic collisions • Enforce laws and ordinances, preserve the peace and provide for the protection of life and property through proactive programs of enforcement and prevention 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 11,629,683$ 12,030,528$ 13,282,443$ 13,608,607$ Retirement Benefits 4,646,939 3,859,669 4,246,687 4,710,926 Health Insurance 1,122,739 1,100,627 1,290,138 1,342,738 Other Personnel Expenses 1,399,103 1,588,072 1,786,763 2,145,480 Personnel Services Subtotal 18,798,464 18,578,896 20,606,031 21,807,751 Operating Expenses Professional & Contract Services 42,191 53,438 64,000 270,500 Supplies & Materials 383,923 417,999 154,230 170,925 Repair & Maintenance 11,632 9,155 1,350 7,860 Interdepartmental Charges 2,452,541 2,518,782 2,836,615 3,559,568 Other Operating Expenses 113,458 146,504 122,500 119,150 Capital Outlay 215,262 103,881 - - Operating Expenses Subtotal 3,219,007 3,249,759 3,178,695 4,128,003 TOTAL EXPENDITURES 22,017,471$ 21,828,655$ 23,784,726$ 25,935,754$ Full Time Positions 88.50 86.50 81.00 84.00 Hourly/FTE Positions 0.00 0.00 0.00 0.00 C-14 Police Activity CY 2019 CY 2020 CY 2021 CY 2022 CY 2023 Police activities/Calls for service 112,323 110,448 107,156 103,192 114,786 Number of cases 8,744 8,222 8,704 8,348 8,389 911 calls 33,061 31,642 36,154 34,550 35,926 Total phone calls 157,587 162,055 162,541 148,819 144,662 RECENT ACCOMPLISHMENTS • Received an approval rating of 4.51 out of 5, based on 8,326 people surveyed when asked how they would rate the officer they interacted with • Conducted Active Shooter Training with special attention to schools and staged a training event at Calavera Hills Middle School • Conducted a public safety review of the current TGIF Concerts in the Park and recommended enhanced security measures to better align with best practices in policing • Formalized critical incident debriefing protocol and documentation to ensure that the department maximizes the learning potential of unique incidents • Reassigned Community Service Officers to the front desk of the newly remodeled Police & Fire Headquarters to better serve the public • Updated personnel quarterly evaluation and assignment selection procedures to improve consistency in employee feedback and transparency in career direction and opportunity • Issued new ballistic plates, helmets and trauma kits to patrol officers, and implemented standardized procedures for trauma kit deployment Metrics FY 2023 Actual FY 2024 Estimated FY 2025 Projected Suspects arrested with License Plate Readers* 61 62 65 Vehicles recovered with License Plate Readers 80 70 75 *Automated license plate reader technology, also known as License Plate Recognition, is used by the Police Department to convert data associated with vehicle license plates for official law enforcement purposes, including identifying stolen or wanted vehicles, stolen license plates and missing persons GOALS • Continue to work with schools to improve cooperation and collaboration during incidents • Continue to work on department’s technology foundation to be more effective and efficient, acquire more timely and accurate data and support a data-driven approach to policing • Better track resource allocations during both normal operations and critical incidents • Continue to evaluate the department’s response time for calls for service Performance Measures CY 2021 Actual CY 2022 Actual CY 2023 Actual Benchmark Related Strategic Plan Goal Priority 1 calls for service response time 4:49 5:07 6:17 6:00 Quality of Life & Safety Priority 2 calls for service response time 9:17 10:54 14:00 N/A Quality of Life & Safety Priority 3 calls for service response time 42:13 48:45 32:56 N/A Quality of Life & Safety Priority 4 calls for service response time 25:45 28:59 29:24 N/A Quality of Life & Safety C-15 PUBLIC SAFETY | POLICE DEPARTMENT: SUPPORT OPERATIONS Account: 0012115 0012121 0012126 0012130-2138 0012142-2143 Fund: General ABOUT The Support Operations Division includes the Crime Suppression Team, Homeless Outreach Team, Investigations Division, Traffic Division, Family Services, Property & Evidence, and Fleet Operations. SERVICES • Conduct follow-up investigations leading to the identification and apprehension of persons responsible for the commission of crimes • Collect and process evidence collected in the field by police employees • Provide support to divisions to assist with meeting goals • Assist in the preservation of all life and ensure a safe resolution to critical incidents • Investigate and follow up on crime and incident reports as they relate to the family • Assist in the coordination of diversion, prevention and education activities • Provide and manage the department’s fleet 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 8,504,741$ 9,455,061$ 10,317,039$ 10,383,424$ Retirement Benefits 3,289,520 2,775,770 3,439,676 3,545,448 Health Insurance 893,813 900,455 1,027,297 1,123,496 Other Personnel Expenses 989,371 1,115,396 1,532,583 1,637,419 Personnel Services Subtotal 13,677,445 14,246,682 16,316,595 16,689,787 Operating Expenses Professional & Contract Services 621,858 579,572 593,252 644,842 Supplies & Materials 122,068 90,099 88,775 88,450 Repair & Maintenance 38,608 48,004 29,800 57,820 Interdepartmental Charges 858,213 808,173 911,437 1,044,602 Other Operating Expenses 63,744 95,787 108,750 99,850 Capital Outlay 140,056 417,500 - - Operating Expenses Subtotal 1,844,547 2,039,135 1,732,014 1,935,564 TOTAL EXPENDITURES 15,521,992$ 16,285,817$ 18,048,609$ 18,625,351$ Full Time Positions 58.50 59.50 66.00 63.00 Hourly/FTE Positions 0.00 1.18 1.18 1.18 C-16   CY 2021 CY 2022 CY 2023 Crimes against persons 27.48% 53.92% 57.2% Crimes against property 6.14% 11.39% 16.4% Crimes against society 69.14% 89.66% 94.66% *Clearance rates reported last year are no longer used and are now reportable from the California Incident Based Reporting System (CIBRS), which only has data dating back to 2021. RECENT ACCOMPLISHMENTS • Responded to 8,322 homeless-related calls for service last year, of which 3,754 calls were in response to a specific request or complaint and 4,568 were proactive department-initiated calls for service to help carry out city homelessness goals and enforce applicable laws • Continued the process of installing in-car video into the marked police vehicle fleet • Completed a re-organization of the Investigative Bureau which included reallocating two positions to the Property Crimes Unit to better serve this unit • Executed a contract for hazardous waste packaging, transportation and disposal to remain in compliance with the County of San Diego and Environmental Protection Agency • Began distribution of individually assigned vehicles for the take home vehicle program for patrol personnel • Developed and implemented an e-bike education program in conjunction with the city’s Safer Streets Initiative • Organized a working group of police department employees to assist the public information officer with social media platforms • Developed an employee climate survey in collaboration with the Police Officer’s Association to determine how the department can improve • Fully staffed the motor division for the first time in five years GOALS • Update and expand the deployment of the department’s drone fleet to cover all patrol shifts • Implement the vehicle telematics testing phase • Expand the less lethal program and provide training for all officers who may need to use a less lethal device while involved in a critical incident. Currently, only certain officers are trained to utilize these devices and this limits our ability to be effective with personnel management in the field • Routinely evaluate caseloads in the investigations divisions to monitor stress and wellness of our detectives and to ensure that work is distributed properly C-17 PUBLIC SAFETY | POLICE DEPARTMENT: ADMINSTRATIVE SUPPORT OPERATIONS Account: 0012144-2145 Fund: General ABOUT The Administrative Support Operations Division includes Crime Analysis, Communications and Records. SERVICES • Provide police officers with actionable information by analyzing crime patterns and statistics, and tracking trends • Provide public safety communication including answering 9-1-1 and other calls and dispatching appropriate emergency personnel • Maintain and provide information and support for all records management, data entry and processing, Public Records Act requests and retrieval of police records in accordance with state-mandated procedures RECENT ACCOMPLISHMENTS • Received an approval rating of 4.66 out of 5 based on 8,570 people surveyed when asked how they would rate dispatch services • Deployed the new public alert messaging system known as Genasys 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 2,309,781$ 2,507,653$ 2,987,249$ 3,105,595$ Retirement Benefits 718,187 571,155 596,637 678,585 Health Insurance 293,340 282,746 406,174 431,133 Other Personnel Expenses 439,590 503,414 594,115 682,532 Personnel Services Subtotal 3,760,898 3,864,968 4,584,175 4,897,845 Operating Expenses Professional & Contract Services 81,485 16,393 19,700 19,500 Supplies & Materials 256,950 25,620 29,250 25,500 Repair & Maintenance 155,479 164,061 175,000 169,950 Interdepartmental Charges 129,276 121,836 103,600 130,830 Other Operating Expenses 11,966 17,596 15,800 17,205 Capital Outlay 4,218 5,039 - - Operating Expenses Subtotal 639,374 350,545 343,350 362,985 TOTAL EXPENDITURES 4,400,272$ 4,215,513$ 4,927,525$ 5,260,830$ Full Time Positions 28.00 28.00 28.00 28.00 Hourly/FTE Positions 1.00 1.00 0.00 0.00 C-18 • Received a passing score on the annual California Department of Justice Criminal Justice Information Services audit for calendar year 2022 • Maintained the highest level of services despite staffing challenges in all three subdivisions GOALS • Incorporate existing and emerging public safety technologies to enhance our service to the public, such as Live911 and Rapid Deploy • Prepare for the statewide migration to Next Generation 911, an emergency communications infrastructure enabling voice and multimedia communications between the 911 caller, the dispatcher and officers in the field • Continue to collaborate with IT to implement a new Computer Aided Dispatch system • Evaluate schedules in dispatch in order to fill staff vacancies and increase retention • Explore options to enhance the department’s resources to provide staff with the ability to access, view and gather intelligence information in a more timely manner Performance Measures CY 2022 Actual CY 2023 Estimated CY 2024 Projected Benchmark Related Strategic Plan Goal Percentage of 911 calls answered within first 15 seconds 98.79% 97.90% 98% 90% (national standard) Quality of Life & Safety C-19 PUBLIC SAFETY | POLICE DEPARTMENT: PROFESSIONAL STANDARDS & SERVICES Account: 0012119 0012122 0012140 Fund: General ABOUT The Professional Standards & Services Division supports the Police Department in the form of training, internal affairs, recruitment and hiring. SERVICES • Recruit new employees, organize testing programs and conduct mandated pre-employment investigations and Peace Officer Standards and Training • Establish, maintain and enforce department professional standards and coordinate all department training • Investigate complaints against police employees • Provide information to the media to inform the public regarding crime activity in the city • Develop and administer promotional testing within the police department • Help improve the quality of life for city residents through crime prevention awareness and education and help reduce the fear of crime through the dissemination of information 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 531,540$ 887,678$ 681,439$ 785,457$ Retirement Benefits 192,657 230,466 186,138 258,433 Health Insurance 62,099 90,225 80,105 90,689 Other Personnel Expenses 78,075 109,890 109,121 126,873 Personnel Services Subtotal 864,371 1,318,259 1,056,803 1,261,452 Operating Expenses Professional & Contract Services 92,115 83,998 125,500 104,000 Supplies & Materials 79,205 103,327 94,250 97,100 Repair & Maintenance 556 - 275 20 Interdepartmental Charges 28,380 32,004 26,849 31,145 Other Operating Expenses 80,704 33,099 27,550 27,000 Capital Outlay 26,962 - - 372,766 Operating Expenses Subtotal 307,922 252,428 274,424 632,031 TOTAL EXPENDITURES 1,172,293$ 1,570,687$ 1,331,227$ 1,893,483$ Full Time Positions 4.00 5.00 4.00 4.00 Hourly/FTE Positions 1.00 1.00 1.00 1.00 C-20 RECENT ACCOMPLISHMENTS • Updated the department policy and procedures manual to develop clear and comprehensive policies that increase community engagement and foster cooperation • Updated the Special Assignment and Promotion policy to monitor and regulate change affecting Police Department personnel to prevent undue stress upon the department • Updated the uniform and award manual to increase officer wellness, safety and job satisfaction • Updated the training master plan, which provides professional growth and continued development for department personnel • Received and conducted 33 internal affairs investigations (both internal and external) ensuring good order and discipline within the department • Hired 14 personnel in the police department including sworn, non-sworn and professional staff in order to help fill vacancies • Promoted 8 personnel within the department • Held two family police academies to promote employee wellness and extend it to their families • Began utilizing inventory tracking software, Quartermaster, instead of spreadsheets to increase accuracy and efficiency for the entire department • Combined training groups to provide a more cohesive, joint training plan with an emphasis on de-escalation principles GOALS • Continue to maintain adequate levels of staffing in all areas of the department • Utilize new evaluation, training and selection procedures as a mechanism for employee development and mentoring • Create a leadership development program to cultivate desirable traits and capabilities in individuals before they begin promotion process D-1 PUBLIC WORKS Public Works is responsible for planning, providing and maintaining the infrastructure that supports a high quality of life in the City of Carlsbad. From city buildings and vehicles to roads, habitat, safe, reliable water supplies and more, Public Works oversees responsible and sustainable management practices for a wide variety of city assets. This includes administration of the Capital Improvement Program, a five-year budget with a 15-year forecast that encompasses planning, design and construction of road and traffic improvements; major facilities maintenance, repairs and renovation; storm drain systems; water and wastewater infrastructure; civic buildings and other infrastructure projects. Public Works plays a key role in promoting environmental sustainability, enhancing options and protecting public health and safety. Paz Gomez Deputy City Manager, Public Works 442-339-2751 paz.gomez@carlsbadca.gov D-2 D-3 PUBLIC WORKS | ADMINISTRATION Account: 0018310 Fund: General ABOUT Public Works Administration provides leadership and strategic vision for the entire Public Works Branch, which is comprised of the Construction Management & Inspection, Fleet & Facilities, Environmental Sustainability, Transportation and Utilities departments. It provides administrative support services with a focus on alignment to the Strategic Plan, Community Vision and other City Council initiatives. SERVICES • Provide leadership and management support, operating budget oversight, Capital Improvement Program (CIP) oversight, contract administration and records management RECENT ACCOMPLISHMENTS • Developed and implemented a pilot contractor performance evaluation program that incorporates best practices from the What Works Cities program • Implemented contractual requirements related to new and updated air quality regulations from the California Air Resources Board • Presented eight learning sessions for staff on topics such as conflict of interest, cooperative purchasing and evaluative best practices 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages $957,345 $798,582 $849,559 $867,300 Retirement Benefits 261,482 169,614 182,926 204,782 Health Insurance 98,468 70,661 72,179 80,252 Other Personnel Expenses 33,683 24,810 29,090 55,439 Personnel Services Subtotal 1,350,978 1,063,667 1,133,754 1,207,773 Operating Expenses Professional & Contract Services 113,686 100,049 83,078 111,700 Supplies & Materials 18,643 18,812 8,046 9,546 Repair & Maintenance 3,153 1,910 2,100 7,100 Interdepartmental Charges 250,908 235,716 325,400 173,647 Other Operating Expenses 22,958 21,867 9,894 23,272 Capital Outlay 0 - - - Operating Expenses Subtotal 409,348 378,354 428,518 325,265 TOTAL EXPENDITURES $1,760,326 $1,442,021 $1,562,272 $1,533,038 Full Time Positions 7.85 5.90 6.00 6.00 Hourly/FTE Positions 1.50 1.60 1.60 1.50 D-4 • Transformed the CIP process from a 15-year plan to a five-year budget that more directly aligns with the Strategic Plan, provides for more accurate and timely cost estimates, supports realistic project delivery timelines based on available resources, and offers improved transparency in decision-making • Updated Administrative Order 50 containing the CIP project scoring matrix to increase weighting for project readiness and funding availability, and include equity analysis as a key consideration • Successfully implemented the first phase of a new enterprise asset management system, which included the Facilities and Streets and Storm Drain Maintenance divisions, and initiated the second phase with gathering requirements for the Utilities Department GOALS • Support an update of the city’s procurement policy and related administrative orders • Complete major update to Public Works standard contract templates to reflect updated Greenbook engineering standards and streamline language • Continue to engage in the planning, design and implementation of a citywide portfolio project management system, including CIP project management • Continue to focus on employee coaching, development and training for staff at all levels throughout the branch D-5 PUBLIC WORKS | CONSTRUCTION MANAGEMENT & INSPECTION Account: 00185XX Fund: General ABOUT Construction Management & Inspection ensures compliance with legal, regulatory and contractual requirements during construction of CIP and private development projects. SERVICES • Manage construction of CIP projects and public works contracts for all city asset-managing departments • Inspect and oversee private development grading • Inspect and oversee stormwater compliance and Green Infrastructure improvements and maintenance • Oversee all construction activity in the public right-of-way RECENT ACCOMPLISHMENTS • Implemented a new construction project management system to track resources, costs, documentation and compliance for CIP projects • Provided construction management and inspection services on significant CIP projects and citywide emergency responses, including Safer Streets Together initiative, Trieste slope repair, Avenida Encinas Coastal Rail Trail improvements, Recycled Water Phase 3 D-4 Reservoir and Downtown and Terramar Water Lines 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 1,567,875$ 1,781,181$ 1,636,110$ 1,615,046$ Retirement Benefits 450,194 415,260 373,801 408,043 Health Insurance 203,152 203,183 233,899 234,323 Other Personnel Expenses 55,815 56,130 59,530 63,768 Personnel Services Subtotal 2,277,036 2,455,754 2,303,340 2,321,180 Operating Expenses Professional & Contract Services 212,748 203,657 242,209 242,209 Supplies & Materials 15,012 11,355 13,027 12,027 Repair & Maintenance 906 685 314 314 Interdepartmental Charges 387,526 406,978 684,756 477,302 Other Operating Expenses 16,027 14,301 14,260 15,260 Capital Outlay - - - - Operating Expenses Subtotal 632,219 636,976 954,566 747,112 TOTAL EXPENDITURES 2,909,255$ 3,092,730$ 3,257,906$ 3,068,292$ Full Time Positions 15.20 16.20 15.00 15.00 Hourly/FTE Positions 0.50 0.50 0.50 0.50 D-6 • Provided construction inspection services for private development projects such as Marja Acres, Ionis 21 & 22, Pacific Wind and Aviara Apartments • Continued to inspect work in the right-of-way for 5G communications infrastructure installation throughout the city • Maintained stormwater compliance through training, education, outreach and enforcement actions resulting in zero construction-related notices of violation from the Regional Water Quality Control Board to date GOALS • Implement a pilot contractor performance evaluation process to improve accountability during the course of a public works project • Continue to leverage project management tools and processes to improve efficiency and effectiveness within the department • Work with property owners to reduce pollution and improve water quality through the city’s Green Infrastructure program, formerly known as the Treatment Control Best Management Practices program, with the goal of receiving at least a 75% response rate on the annual Green Infrastructure maintenance verification • Continue to maintain stormwater compliance on CIP projects with a goal of no violations from the Regional Water Quality Control Board Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Percentage of property owners that respond to the annual Green Infrastructure maintenance verification 80% 75% 75% 75% Sustainability & the Natural Environment Construction stormwater violations on CIP projects 0 0 0 0 Sustainability & the Natural Environment D-7 PUBLIC WORKS | ENVIRONMENTAL SUSTAINABILITY: SUMMARY ENVIRONMENTAL SUSTAINABILITY • Climate Action Plan and Habitat Management • Sustainable Materials Management • Watershed Protection ABOUT The General Fund portion of the Environmental Sustainability Department budget includes the Climate Action Plan and Habitat Management divisions and coordination of the municipal component of the National Pollutant Discharge Elimination System Municipal Stormwater Permit in the Watershed Protection Division. These divisions integrate components of the Environmental and Sustainability Guiding Principles and support the Strategic Plan Goal of Sustainability & the Natural Environment. 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 1,244,051$ 1,550,644$ 1,686,858$ 1,670,130$ Retirement Benefits 346,714 383,452 382,291 416,075 Health Insurance 188,234 220,745 319,346 247,975 Other Personnel Expenses (207,306) 91,353 64,677 57,052 Personnel Services Subtotal 1,571,693 2,246,194 2,453,172 2,391,232 Operating Expenses Professional & Contract Services 1,669,874 1,417,564 1,532,356 1,196,996 Supplies & Materials 77,212 144,559 52,570 60,407 Repair & Maintenance 305 5 50 50 Interdepartmental Charges 710,436 842,040 1,202,311 1,078,677 Other Operating Expenses 38,229 29,284 23,421 26,088 Capital Outlay 10,265 129,956 - - Operating Expenses Subtotal 2,506,321 2,563,408 2,810,708 2,362,218 TOTAL EXPENDITURES 4,078,014$ 4,809,602$ 5,263,880$ 4,753,450$ General Fund 1,238,207 1,205,943 1,178,783 1,210,630 Enterprise Fund 2,839,807 3,603,659 4,085,097 3,542,820 TOTAL FUNDING 4,078,014$ 4,809,602$ 5,263,880$ 4,753,450$ Full Time Positions 11.95 17.60 17.50 16.50 Hourly/FTE Positions 1.50 1.50 1.50 1.50 D-8 PUBLIC WORKS | ENVIRONMENTAL SUSTAINABILITY: CLIMATE ACTION PLAN AND HABITAT MANAGEMENT Account: 0015110 0015130 Fund: General SERVICES • Coordinate with multiple city departments to oversee Climate Action Plan (CAP) implementation, collect monitoring data and prepare an annual report • Provide updates to the CAP document as directed by the City Council • Coordinate preparation of a community-wide greenhouse gas (GHG) emissions inventory and forecast as needed • Perform outreach and education related to CAP activities and respond to public inquiries • Oversee and coordinate implementation of the Carlsbad Green Business Program • Analyze new programs and pilot projects to assist with CAP implementation as appropriate • Participate in groups such as the San Diego Regional Climate Collaborative and SANDAG ReCAP Stakeholder Working Group • Review GHG emissions data from SANDAG and incorporate into the CAP annual report • Research and monitor upcoming regulations, funding opportunities and activities related to climate mitigation and adaptation • Monitor regional climate change preparedness activities 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 303,978$ 302,502$ 345,990$ 381,694$ Retirement Benefits 86,001 71,396 76,399 93,421 Health Insurance 34,082 36,234 37,068 44,033 Other Personnel Expenses 10,597 9,851 12,386 12,382 Personnel Services Subtotal 434,658 419,983 471,843 531,530 Operating Expenses Professional & Contract Services 594,695 424,174 284,362 284,362 Supplies & Materials 41,383 9,635 6,307 6,307 Repair & Maintenance 18 - 20 20 Interdepartmental Charges 86,988 97,308 148,637 125,647 Other Operating Expenses 4,344 8,466 5,668 5,668 Capital Outlay - - - - Operating Expenses Subtotal 727,428 539,583 444,994 422,004 TOTAL EXPENDITURES 1,162,086$ 959,566$ 916,837$ 953,534$ Full Time Positions 2.65 2.55 2.70 2.90 Hourly/FTE Positions 0.50 0.50 0.50 0.50 D-9 • Provide leadership and citywide coordination to ensure compliance with Habitat Management Plan (HMP) regulations for private and CIP projects • Conduct staff training for multiple city departments as necessary • Oversee preserve managers to ensure HMP-compliant biological management, monitoring and reporting across the citywide preserve system • Collaborate with the U.S. Fish and Wildlife Service, California Department of Fish and Wildlife and California Coastal Commission staff to ensure solutions-oriented HMP implementation • Represent the city in regional conservation organizations, including San Diego Management and Monitoring Program and SANDAG Habitat Conservation Taskforce • Facilitate regional and local conservation-related scientific research, biological monitoring and adaptive management • Coordinate preserve inspection program and Ward’s weed control program RECENT ACCOMPLISHMENTS • Continued serving as a board member for the San Diego Regional Climate Collaborative, the Alliance for Regional Collaboratives for Climate Adaptation and the California Green Business Network • Completed 74 Home Energy Score Assessments to assist residents with their home energy usage and provide sustainable solutions • Developed online interactive GIS map to provide the public with access to information about HMP preserves and native species and habitats in the city • Prepared Triennial Long-term Biological Monitoring Report, summarizing the status of sensitive species in the city • Performed GIS analysis to identify potential restoration opportunities throughout the HMP preserve system • Initiated pilot adaptive management program to enhance and protect two endangered plant species and rare native grassland habitat • Completed all municipal inspections as required by the Municipal Stormwater Permit GOALS • Adopt a comprehensive CAP update and begin implementation of the updated CAP • Continue implementation of the Carlsbad Green Business Program • Meet HMP regulatory requirements, including target preserve acres and report out to the resource agencies and the public annually • Implement a preserve inspection program to identify potential threats and implement a pilot adaptive management project to address some of those threats • Conduct HMP outreach to the community and city staff in multiple departments by providing presentations and trainings Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal New Carlsbad Green Business Program certifications 9 19 15 N/A Sustainability & the Natural Environment Acreage goal added to Habitat Management Plan area 96% 96% 96% N/A Sustainability & the Natural Environment D-10 PUBLIC WORKS | ENVIRONMENTAL SUSTAINABILITY: SUSTAINABLE MATERIALS MANAGEMENT Account: 0015120 520XXXX Fund: General Enterprise ABOUT Consistent with the Carlsbad Municipal Code and General Plan, the Sustainable Materials Management Division coordinates implementation of a citywide waste reduction and recycling program to maintain compliance with state regulations related to waste reduction, diversion and proper disposal of solid waste. Division staff oversee the franchise agreement for waste hauling and recycling services, Palomar Transfer Station agreement for disposal services, waste reduction and diversion outreach and education programs and proper disposal of household hazardous waste. SERVICES • Represent the city at meetings with CalRecycle, businesses, residents and other stakeholders • Improve the municipal waste reduction, diversion and other sustainability programs • Prepare local, state and national grant applications with the City Council’s approval; appropriate funds, implement grant activities, track expenses and submit grant reports 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 398,983$ 723,050$ 742,551$ 650,186$ Retirement Benefits 93,562 187,090 170,478 163,418 Health Insurance 52,543 87,708 165,175 83,652 Other Personnel Expenses 13,658 27,222 29,470 22,919 Personnel Services Subtotal 558,746 1,025,070 1,107,674 920,175 Operating Expenses Professional & Contract Services 647,235 629,425 736,980 400,120 Supplies & Materials 29,359 126,961 35,163 44,200 Repair & Maintenance - - - - Interdepartmental Charges 217,572 322,668 497,769 506,947 Other Operating Expenses 22,892 15,875 9,833 12,800 Capital Outlay 10,265 129,956 - - Operating Expenses Subtotal 927,323 1,224,885 1,279,745 964,067 TOTAL EXPENDITURES 1,486,069$ 2,249,955$ 2,387,419$ 1,884,242$ General Fund 76,121 246,377 261,946 257,096 Enterprise Fund 1,409,948 2,003,578 2,125,473 1,627,146 TOTAL FUNDING 1,486,069$ 2,249,955$ 2,387,419$ 1,884,242$ Full Time Positions 2.80 9.65 8.65 7.30 Hourly/FTE Positions 0.50 0.50 0.50 0.50 D-11 • Coordinate outreach and education targeted at increasing recycling and other diversion programs for residents, businesses, municipal employees and the public • Coordinate annual Earth Month and Earth Day events promoting recycling, proper disposal of household hazardous waste, composting and beach cleanup • Conduct annual rate analysis to determine cost-effective practices for the franchise agreement, including trash and recycling services • Submit required annual recycling, composting and disposal reports to CalRecycle as required • Participate in regional activities with SANDAG Solid Waste Technical Advisory Committee • Engage community to decrease waste and increase recycling and compost practices RECENT ACCOMPLISHMENTS • Provided outreach and education to all multifamily properties and businesses in the city on new single-use plastics ordinances and organics requirements • Hosted Fix-It clinic events, compost giveaway events and an e-waste collection event • Implemented sharp collection program at various municipal facilities for residents • Continued to work in all school districts assisting with education programs, staff training, and incorporating the waste hauler • Presented at the California Resource Recovery Association, Waste Expo and Sustainability, Operations, Action, Resources conferences on sustainable initiatives implemented in the city • Expanded edible food recovery efforts by providing funding opportunities to food recovery organizations that supported local businesses • Expanded Earth Month education and event activities to incentivize behavior change • Reviewed special event applications for compliance with recycling and trash best practices GOALS • Monitor waste diversion and recycling programs at the Palomar Transfer Station • Increase waste diversion in the commercial sector by focusing on technical assistance targeting high trash-generating businesses with low diversion rates • Continue tracking per capita disposal rate in pounds per person per day to verify accuracy • Reduce the number of businesses without recycling or compost services to zero SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET In response to City Council feedback requesting staff identify additional ways to contain ongoing operational costs within the organization, staff conducted a review of staffing levels, workload and existing vacancies in an effort to find new opportunities for savings. As part of this effort, Environmental Sustainability eliminated a vacant senior environmental specialist primarily responsible for supervising staff and coordinating environmental sustainability programs to ensure compliance with regulatory requirements of SB 1383. The duties will be reassigned to existing staff with minimal service level impacts expected. Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Pounds per person sent to landfill 7.8 lbs. 7.8 lbs. 7.5 lbs. N/A Sustainability & the Natural Environment Organics diverted from the landfill 20,975 tons 24,120 tons 28,955 tons N/A Sustainability & the Natural Environment D-12 PUBLIC WORKS | ENVIRONMENTAL SUSTAINABILITY: WATERSHED PROTECTION Account: 5215110 Fund: Enterprise ABOUT This budget includes leadership and stewardship of the city’s resources, specifically protecting our creeks, lagoons and ocean. The Watershed Protection Division coordinates the citywide watershed protection program and helps the city maintain compliance with the National Pollutant Discharge Elimination System Municipal Stormwater Permit issued by the San Diego Regional Water Quality Control Board (Regional Board). SERVICES • Participate with neighboring cities in the Carlsbad Watershed as the Principal Co-permittee, serving as a liaison with the Regional Board, ensuring submittal of annual reports and participating in the San Diego County Co-permittees Regional Program Planning Committee • Represent the city at meetings with the California Environmental Protection Agency, Regional Board, San Diego County Co-permittees, Carlsbad Watershed, environmental nonprofit groups and other stakeholders • Assess businesses to ensure proper best management practices and pollution prevention, prevent discharges into the Municipal Separate Storm Sewer System, or MS4, and protect receiving waters, which may require follow-up visits, targeted education or enforcement 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 541,090$ 525,092$ 598,317$ 638,250$ Retirement Benefits 167,151 124,966 135,414 159,236 Health Insurance 101,609 96,803 117,103 120,290 Other Personnel Expenses (231,561) 54,280 22,821 21,751 Personnel Services Subtotal 578,289 801,141 873,655 939,527 Operating Expenses Professional & Contract Services 427,944 363,965 511,014 512,514 Supplies & Materials 6,470 7,963 11,100 9,900 Repair & Maintenance 287 5 30 30 Interdepartmental Charges 405,876 422,064 555,905 446,083 Other Operating Expenses 10,993 4,943 7,920 7,620 Capital Outlay - - - - Operating Expenses Subtotal 851,570 798,940 1,085,969 976,147 TOTAL EXPENDITURES 1,429,859$ 1,600,081$ 1,959,624$ 1,915,674$ Full Time Positions 6.50 5.40 6.15 6.30 Hourly/FTE Positions 0.50 0.50 0.50 0.50 D-13 • Conduct illicit discharge detection and elimination into the MS4 as required by the Municipal Stormwater Permit, including responding to and investigating potential illicit discharges in the city, performing field screening at major outfalls and managing a public hotline • Compile the annual Jurisdictional Runoff Management Program report and prepare new program documents at the beginning of each Municipal Stormwater Permit cycle • Act as the lead division for planning and implementation of the statewide Trash Amendments and incorporate them into the next Municipal Stormwater Permit RECENT ACCOMPLISHMENTS • Managed the contract for a watershed coordinator to assist the watershed agencies with updating and implementing the Water Quality Improvement Plan and report to optimize the watershed’s compliance with the Municipal Stormwater Permit • Submitted the Carlsbad Watershed Management Area Water Quality Improvement Plan and the Jurisdictional Runoff Management Program Annual Reports to the Regional Board • Worked interdepartmentally to implement state mandated trash control measures to keep trash out of the storm drain system and downstream waterbodies • Hosted two Creek to Bay Cleanup sites and provided other outreach and education activities within the city and regionally • Completed all state mandated water quality monitoring and annual stormwater inspections • Assisted the asset management team by creating stormwater GIS data for 111 development projects GOALS • Implement a monitoring program to evaluate MS4 discharges, including receiving water monitoring, MS4 water quality monitoring, sediment quality monitoring and various studies • Implement a public outreach program to promote behavior changes that reduce the discharge of pollutants into the MS4 and protect water quality in the receiving waters • Implement all required strategies and numeric goals of the Water Quality Improvement Plan • Incorporate innovative methods to implement the city’s Jurisdictional Runoff Management Program in conjunction with the Carlsbad Watershed Water Quality Improvement Plan and submit required reports to the Regional Board • Prepare for implementation of the revised Municipal Stormwater Permit which will include new requirements to control trash • Conduct all annual inspections of existing development and water quality monitoring required by the Municipal Stormwater Permit • Respond to at least 90% of illicit discharge emergencies within 45 minutes and detect and eliminate 100% of illicit discharges Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Percentage of emergency response times under 45 minutes for illicit discharges 100% 90% 90% 90% Sustainability & the Natural Environment Illicit discharges detected and eliminated 100% 100% 100% 100% Sustainability & the Natural Environment D-14 PUBLIC WORKS | FLEET & FACILITIES: SUMMARY FLEET & FACILITIES • Facilities • Fleet Maintenance & Replacement 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 2,595,221$ 2,896,970$ 3,296,372$ 3,386,717$ Retirement Benefits 750,997 611,972 682,059 769,100 Health Insurance 491,384 529,529 621,793 652,776 Other Personnel Expenses (84,024) 153,544 132,211 127,420 Personnel Services Subtotal 3,753,578 4,192,015 4,732,435 4,936,013 Operating Expenses Professional & Contract Services 1,035,773 1,337,151 887,371 885,371 Supplies & Materials 2,384,764 2,576,792 2,091,292 2,398,514 Repair & Maintenance 1,396,652 1,262,464 1,453,060 1,461,060 Interdepartmental Charges 800,736 786,546 1,455,622 948,285 Other Operating Expenses 611,319 629,450 629,674 632,668 Capital Outlay 3,642,867 1,650,055 1,068,564 4,598,574 Operating Expenses Subtotal 9,872,111 8,242,458 7,585,583 10,924,472 TOTAL EXPENDITURES 13,625,689$ 12,434,473$ 12,318,018$ 15,860,485$ General Fund 6,297,998$ 6,812,114$ 7,497,115$ 7,191,930$ Internal Service Fund 7,278,017$ 5,569,359$ 4,764,903$ 8,611,435$ Special Revenue Fund 49,674$ 53,000$ 56,000$ 57,120$ TOTAL FUNDING 13,625,689$ 12,434,473$ 12,318,018$ 15,860,485$ Full Time Positions 35.10 34.95 35.95 35.95 Hourly/FTE Positions 7.75 6.90 8.40 8.40 D-15 PUBLIC WORKS | FLEET & FACILITIES: FACILITIES Account: 0015310 0015320 3155110 Fund: General Special Revenue-Parking in Lieu ABOUT The Facilities Division provides safe and comfortable working spaces at city facilities and maintains quality indoor public spaces. Additionally, this division oversees the design and construction work for new city facilities and building renovation projects and operates the Safety Training Center. SERVICES • Maintain city-owned facilities including building exteriors, interiors, cleaning and custodial services, as well as set-up of offices and meeting rooms • Provide building construction, improvements, renovations, repairs and relocation • Operate the Safety Training Center for public safety personnel training as well as provide leasing and rental opportunities to federal, state and local agencies and programs 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 1,823,085$ 2,027,002$ 2,383,940$ 2,437,148$ Retirement Benefits 517,714 415,848 483,233 540,611 Health Insurance 325,513 345,885 438,791 440,694 Other Personnel Expenses 76,401 73,962 96,564 92,583 Personnel Services Subtotal 2,742,713 2,862,697 3,402,528 3,511,036 Operating Expenses Professional & Contract Services 1,005,343 1,306,531 848,028 849,028 Supplies & Materials 658,866 726,504 585,319 581,819 Repair & Maintenance 964,153 801,167 1,067,966 1,067,966 Interdepartmental Charges 599,364 561,311 1,038,153 630,020 Other Operating Expenses 375,914 601,201 611,121 609,181 Capital Outlay 1,319 5,703 - - Operating Expenses Subtotal 3,604,959 4,002,417 4,150,587 3,738,014 TOTAL EXPENDITURES 6,347,672$ 6,865,114$ 7,553,115$ 7,249,050$ General Fund 6,297,998$ 6,812,114$ 7,497,115$ 7,191,930$ Special Revenue Fund 49,674 53,000 56,000 57,120 Total Funding 6,347,672$ 6,865,114$ 7,553,115$ 7,249,050$ Full Time Positions 24.85 24.85 25.85 25.85 Hourly/FTE Positions 6.75 5.90 7.40 7.40 D-16 RECENT ACCOMPLISHMENTS • Completed a citywide facility condition assessment and workplan to understand and plan for future preventative maintenance needs • Replaced antiquated security alarm systems at all city facilities to ensure more timely, reliable responses • Established facility asset management program that integrates with the city's newly implemented enterprise asset management software • Completed construction work for Phase 2 of the Police & Fire Headquarters renovation project with Phases 3 and 4 in progress; Phase 4 includes the Emergency Operations Center (EOC) wing reconfiguration project • Completed the design work for the Monroe Street Pool Renovation/Replacement project and submitted the design to the Community Development Department for permitting review and approval • Completed the design work and obtained a building permit for the Alga Norte Aquatic Center family restroom and locker room renovations • Awarded a contract for the audiovisual (AV) upgrade of the Schulman Auditorium • Completed construction of the Leo Carrillo Ranch 7 building roof upgrade project, Senior Center roof replacement project, Carlsbad Water Recycling Facility roof replacement project and Calavera Hills Community Center refurbishment project • Supported 124 training days for 19 outside agency leases at the Safety Training Center • Recycled 1,428 pounds of brass shell casings, 450 pounds of lead and copper from indoor shooting range activities and 1,732 pounds of scrap metal GOALS • Monitor building maintenance costs per square foot with the goal of limiting cost increases to annual CPI; benchmark costs per square foot are from the International Facilities Maintenance Association’s Benchmark Report for 2022 adjusted by CPI • Develop a comprehensive facility electrical inspection and maintenance program • Explore opportunities for projects to promote sustainable energy use and production • Continue the city facility and parking lot light pole and fixture replacement project • Complete construction of the State Street Parking Lot EV Charging project • Complete construction of the Alga Norte Park family restroom and locker room renovations • Obtain a permit for and start construction on the Fleet Maintenance Building renovation • Start construction work for the Fleet Fuel Island Upgrade project • Complete construction work for the Schulman Auditorium AV upgrade project Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Number of city-owned EV charging stations 44 54 74 Annual increases Sustainability & the Natural Environment Building maintenance ($/square foot) $5.15 $4.86 $5.03 $4.81 Organizational Excellence & Fiscal Health D-17 PUBLIC WORKS | FLEET & FACILITIES: FLEET MAINTENANCE & REPLACEMENT Account: 6205460 6215461 Fund: Vehicle Maintenance Fund Vehicle Replacement Fund ABOUT The city’s fleet consists of 490 vehicles and equipment necessary to achieve the city’s mission of delivering quality and efficient services safely, affordably and in compliance with all relevant regulations. The fleet maintenance program funds labor, parts, services, fuel and oil necessary to maintain the city’s fleet of vehicles and equipment. The fleet maintenance program is funded through charges to departments based on vehicle type and utilization. The fleet vehicle replacement program is funded through a replacement charge to departments for each vehicle or equipment in service. This program funds asset replacement and vehicle outfitting. Cost-effective vehicle procurement is achieved through cooperative purchasing agreements and bidding processes. Revenue is collected from the sale of retired city fleet assets at auction and used to offset future costs within respective departments. 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 772,136$ 869,968$ 912,432$ 949,569$ Retirement Benefits 233,283 196,124 198,826 228,489 Health Insurance 165,871 183,644 183,002 212,082 Other Personnel Expenses (160,425) 79,582 35,647 34,837 Personnel Services Subtotal 1,010,865 1,329,318 1,329,907 1,424,977 Operating Expenses Professional & Contract Services 30,430 30,620 39,343 36,343 Supplies & Materials 1,725,898 1,850,288 1,505,973 1,816,695 Repair & Maintenance 432,499 461,297 385,094 393,094 Interdepartmental Charges 201,372 225,235 417,469 318,265 Other Operating Expenses 235,405 28,249 18,553 23,487 Capital Outlay 3,641,548 1,644,352 1,068,564 4,598,574 Operating Expenses Subtotal 6,267,152 4,240,041 3,434,996 7,186,458 TOTAL EXPENDITURES 7,278,017$ 5,569,359$ 4,764,903$ 8,611,435$ Full Time Positions 10.25 10.10 10.10 10.10 Hourly/FTE Positions 1.00 1.00 1.00 1.00 D-18 SERVICES • Provide safe, appropriately managed and maintained vehicles for use by city staff, inspect vehicles per requirements of the biennial inspection of terminals and smog programs and maintain 24/7 road call services for emergency vehicles • Provide reliable, cost-effective fuel management by maintaining sufficient fuel supplies for emergencies and monitoring fuel tanks in accordance with state and county regulations • Evaluate the city fleet annually to identify units eligible for replacement or reduction in accordance with Administrative Order 3 • Advise on development of specifications for purchase of replacement units that satisfy client department requirements while optimizing life cycle return on investment in alignment with the Climate Action Plan • Purchase replacement units and identify opportunities to increase fleet electrification and electric vehicle (EV) charging infrastructure RECENT ACCOMPLISHMENTS • Achieved recognition from the National Association of Fleet Managers as a Top 100 Fleet • First municipality in the county to activate the SDG&E Power Your Drive for Fleets Make- Ready Infrastructure Program • Implemented global positioning system (GPS) vehicle telematics pilot for city vehicles • Increased inventory of low-emission vehicles to 96 vehicles • Activated 47 new vehicles and equipment and received $194,200 in revenue for the sale of 35 retired vehicles and equipment • Completed a report on fleet replacement strategies to evaluate best procurement practices • Purchased 10 additional level 3 DC EV fast chargers for installation at the fleet maintenance facility, resulting in an estimated cost avoidance of $244,000 or 50% GOALS • In compliance with the updated Climate Action Plan and Strategic Plan, transition all passenger fleet vehicle purchases to be electric vehicles, with the exception of public safety vehicle purchases which will be electric where feasible • Assess and improve fleet data management techniques and analytical processes for enhanced city reporting capabilities • Increase low- and zero-emission VMT to 40% of total annual fleet VMT or 1,000,000 miles • Expand Electric DC Fast Charging capacity to 12 chargers by end of calendar year 2024 Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Number of non-public safety fleet vehicles that are electric or hybrid 47 55 76 Consistent annual increases Sustainability & the Natural Environment Fleet vehicles ready for active service 96.8% 98% 98% 98% Organizational Excellence & Fiscal Health City-related vehicle miles traveled by low/zero emission vehicles 35% 38% 40% 25% by 2035 Sustainability & the Natural Environment D-19 PUBLIC WORKS | TRANSPORTATION: SUMMARY TRANSPORTATION • Storm Drain Maintenance & Engineering • Traffic, Mobility, Transportation Engineering & Streets Maintenance • Buena Vista Channel, Lighting & Landscaping Districts 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 3,606,940$ 4,053,009$ 4,337,789$ 4,390,652$ Retirement Benefits 1,136,512 1,008,461 993,367 1,113,442 Health Insurance 594,508 629,869 665,807 804,874 Other Personnel Expenses 141,036 168,943 162,686 216,142 Personnel Services Subtotal 5,478,996 5,860,282 6,159,649 6,525,110 Operating Expenses Professional & Contract Services 1,257,360 2,022,171 1,417,716 1,411,316 Supplies & Materials 376,946 503,645 438,816 438,816 Repair & Maintenance 1,225,291 1,229,985 1,463,290 1,457,790 Interdepartmental Charges 1,982,950 2,456,324 2,983,971 3,854,054 Other Operating Expenses 749,114 826,961 717,132 714,732 Capital Outlay 143,200 558,337 80,000 80,000 Operating Expenses Subtotal 5,734,861 7,597,423 7,100,925 7,956,708 TOTAL EXPENDITURES 11,213,857$ 13,457,705$ 13,260,574$ 14,481,818$ General Fund 8,048,352 10,028,265 9,732,215 10,741,202 Enterprise Fund 1,904,811 2,026,321 1,865,537 2,001,426 Special Revenue Fund 1,260,694 1,403,119 1,662,822 1,739,190 TOTAL FUNDING 11,213,857$ 13,457,705$ 13,260,574$ 14,481,818$ Full Time Positions 43.70 43.60 43.80 43.80 Hourly/FTE Positions 1.94 1.50 1.50 1.50 D-20 PUBLIC WORKS | TRANSPORTATION: STORM DRAIN MAINTENANCE & ENGINEERING Account: 0016310 5216310 Fund: General Enterprise-Storm Drain Maintenance ABOUT The Transportation Storm Drain Maintenance & Engineering divisions are responsible for maintaining and improving the city’s storm drain infrastructure. SERVICES • Address various drainage infrastructure and stormwater maintenance issues citywide • Develop plans, specifications and estimates and provide project or design management of projects involving storm drain assets • Optimize maintenance efforts by monitoring and addressing new and ongoing drainage issues • Perform inspection and maintenance of the storm drain system RECENT ACCOMPLISHMENTS • Inspected 100% of high-priority storm drain inlets • Completed the Agua Hedionda Creek vegetation removal between the bridges of Cannon Road and El Camino Real 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages $579,104 $606,752 $710,238 $646,306 Retirement Benefits 177,552 144,417 159,108 158,495 Health Insurance 98,148 100,542 117,861 132,828 Other Personnel Expenses 23,206 49,210 26,998 32,618 Personnel Services Subtotal 878,010 900,921 1,014,205 970,247 Operating Expenses Professional & Contract Services 335,548 447,359 192,507 194,107 Supplies & Materials 26,876 30,180 24,600 24,600 Repair & Maintenance 596,171 649,851 600,900 600,900 Interdepartmental Charges 371,657 317,615 446,694 537,007 Other Operating Expenses 97,729 65,814 85,200 83,600 Capital Outlay 0 0 0 0 Operating Expenses Subtotal 1,427,981 1,510,819 1,349,901 1,440,214 TOTAL EXPENDITURES $2,305,991 $2,411,740 $2,364,106 $2,410,461 General Fund 401,180 385,419 498,569 409,035 Enterprise Fund 1,904,811 2,026,321 1,865,537 2,001,426 TOTAL FUNDING 2,305,991$ 2,411,740$ 2,364,106$ 2,410,461$ Full Time Positions 7.10 7.00 7.35 6.60 Hourly/FTE Positions 0.98 0.50 0.50 0.50 D-21 • Completed approximately 1,800 lane miles of street sweeping bimonthly on all residential, prime and major streets, removing 1,402 tons of debris that otherwise would end up in the city’s storm drain system • Completed Phase I of the Magnolia Avenue Storm Drain Improvements Project • Responded to a storm-related local emergency to repair a split 24-inch storm drain pipeline on Carlsbad Village Drive near Pontiac Drive and completed the work in less than a week • Responded to a storm-related local emergency to remove vegetation and sediment in the Buena Vista Creek concrete channel near El Camino Real, working closely with regulatory agencies • Responded to a storm-related local emergency to address slope repair behind residential properties that front Trieste Drive east of El Camino Real and placed emergency protective measures • Responded to numerous storm-related issues that occurred due to atmospheric rivers with record rains in January and February 2024 and placed emergency protective measures as needed • Cleared vegetation from three drainage outfalls entering the Buena Vista Creek channel from the City of Oceanside GOALS • Complete update of the city’s Drainage Master Plan Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Linear feet of streets swept to mitigate debris 1,800 (100%) 1,800 (100%) 1,800 (100%) 1,800 (100%) Quality of Life & Safety Tons of debris removed from city streets from street sweeping 1,154 tons 1,402 tons 1,400 tons N/A Quality of Life & Safety Percentage of Agua Hedionda Lagoon channels cleaned 100% 100% 100% 100% Sustainability & the Natural Environment D-22 PUBLIC WORKS | TRANSPORTATION: TRAFFIC, MOBILITY, TRANSPORTATION ENGINEERING & STREETS MAINTENANCE Account: 0018410 00186XX 00187XX Fund: General ABOUT Traffic, Mobility, Transportation Engineering & Streets Maintenance divisions maintain and improve the road infrastructure and keep people moving. They are responsible for enhancing mobility and safety citywide through ongoing transportation planning, streets and traffic engineering, streets maintenance and signal operations activities. SERVICES • Conduct traffic and mobility planning, oversee engineering and signals operations and serve as liaison with the Traffic Safety and Mobility Commission • Perform roadside maintenance including street signs, street legends, striping, graffiti and trash removal, pothole and sidewalk repairs • Develop plans, specifications and cost estimates and provide project and design management of projects involving transportation assets RECENT ACCOMPLISHMENTS • Implemented a Bike Valet Program at TGIF concerts in the park and special events • Completed El Camino Real and College Boulevard Intersection Improvements Project 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages $2,878,496 $3,282,209 $3,462,840 $3,568,906 Retirement Benefits 914,632 823,941 795,441 909,235 Health Insurance 479,115 511,235 530,582 652,388 Other Personnel Expenses 111,847 113,934 129,190 174,505 Personnel Services Subtotal 4,384,090 4,731,319 4,918,053 5,305,034 Operating Expenses Professional & Contract Services 828,656 1,435,297 1,011,158 1,003,158 Supplies & Materials 328,483 451,555 338,097 338,097 Repair & Maintenance 467,117 481,259 589,418 583,918 Interdepartmental Charges 1,295,617 1,761,273 2,065,772 2,791,612 Other Operating Expenses 200,009 223,806 231,148 230,348 Capital Outlay 143,200 558,337 80,000 80,000 Operating Expenses Subtotal 3,263,082 4,911,527 4,315,593 5,027,133 TOTAL EXPENDITURES $7,647,172 $9,642,846 $9,233,646 $10,332,167 Full Time Positions 34.65 34.65 34.50 35.25 Hourly/FTE Positions 0.97 1.00 1.00 1.00 D-23 • Completed the conceptual design for the South Carlsbad Boulevard Climate Adaption Study, which spans one mile from Manzano Drive to Island Way • Completed installation of the city’s first pedestrian hybrid beacon crossing signal on Tamarack Avenue at Valley Street to enhance pedestrian visibility and enhance safety • Completed Segment 2 of Avenida Encinas Coastal Rail Trail and Pedestrian Improvements • Completed a neighborhood meeting for traffic calming projects on Hummingbird Road and presented other traffic calming projects to the Traffic Safety and Mobility Commission for review and the City Council for approval • Completed implementation of leading pedestrian interval and countdown pedestrian signal upgrades at 22 school locations and 10 locations in the Village as part of the local traffic safety emergency to improve pedestrian visibility • Completed construction of the Carlsbad Boulevard Pedestrian Improvement Project, which included the city’s first in-pavement lighted crosswalks and other improvements such as curb extensions at six locations on Carlsbad Boulevard • Completed the East-West Corridors Emergency Resurfacing and Restriping Project, which was initiated as part of the local traffic safety emergency and included road improvements on Carlsbad Village Drive, Tamarack Avenue, Cannon Road, Poinsettia Lane, La Costa Avenue and Olivenhain Road • Completed Sidewalk Construction and Parking Lot Americans with Disabilities Act Compliance Project, which involved construction of parking lots at Poinsettia Park, Holiday Park, Calavera Hills Park, Village Arts Lot and in various Carlsbad Village locations • Developed Safe Routes to School plans for Jefferson Elementary and Sage Creek High School GOALS • Finalize the revision of the Carlsbad Residential Traffic Management Program • Complete traffic calming projects on Victoria Avenue, Highland Drive, Nueva Castilla Way, Circulo Sequoia, Park Avenue, Black Rail Road, Plum Tree Road and Carrillo Way • Develop Safe Routes to School plans at Aviara Oaks Elementary and Aviara Oaks Middle Schools to make it safe, convenient, and fun for children to walk and bicycle to and from schools, and continue this program annually at proposed schools Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Percentage of residential traffic-related requests completed 97% (138/143) 87% (144/166) 95% N/A; consistent with staff capacity Quality of Life & Safety Percentage of residential traffic calming neighborhood meetings completed, based on request 100% (13/13) 100% (1/1) 100% (4/4) 100% Quality of Life & Safety D-24 PUBLIC WORKS | TRANSPORTATION: BUENA VISTA CHANNEL, LIGHTING & LANDSCAPING DISTRICTS Account: 162 163 164 Fund: Special Revenue- Street Light Maintenance Special Revenue-Buena Vista Channel Special Revenue-LLD 2 ABOUT The Transportation Engineering Division provides oversight of the Buena Vista Creek Channel Maintenance Assessment District, which funds costs for the maintenance of the Buena Vista Creek Channel drainage system from Jefferson Street east to the South Vista Way bridge. The Transportation Department also provides oversight of the Lighting & Landscaping District 2 and Street Light Maintenance funds, which provide maintenance of streetlights, decorative lighting, street trees and medians within the district boundaries covering newer developments in the city. SERVICES • Ensure adequate funds are collected to administer and maintain the Buena Vista Creek Channel from Jefferson Street east to the South Vista Way bridge • Maintain and repair streetlamps and decorative lighting 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages $149,340 $164,048 $164,711 $175,440 Retirement Benefits 44,328 40,103 38,818 45,712 Health Insurance 17,245 18,092 17,364 19,658 Other Personnel Expenses 5,983 5,799 6,498 9,019 Personnel Services Subtotal 216,896 228,042 227,391 249,829 Operating Expenses Professional & Contract Services 93,156 139,515 214,051 214,051 Supplies & Materials 21,587 21,910 76,119 76,119 Repair & Maintenance 162,003 98,875 272,972 272,972 Interdepartmental Charges 315,676 377,436 471,505 525,435 Other Operating Expenses 451,376 537,341 400,784 400,784 Capital Outlay 0 0 0 0 Operating Expenses Subtotal 1,043,798 1,175,077 1,435,431 1,489,361 TOTAL EXPENDITURES $1,260,694 $1,403,119 $1,662,822 $1,739,190 Full Time Positions 1.95 1.95 1.95 1.95 Hourly/FTE Positions 0.00 0.00 0.00 0.00 D-25 RECENT ACCOMPLISHMENTS • Completed Phase 2 of the citywide streetlight fixtures replacement program to convert them to light-emitting diodes (LED) • Completed annual vegetation clearing and trash removal from the Buena Vista Creek Channel Maintenance District and submitted a report to California Department of Fish and Wildlife GOALS • Initiate Phase 3 of the Citywide Streetlight Replacement Program • Monitor and continue program to clear vegetation entering the Buena Vista channel from the City of Oceanside • Clear 100% of the annual section of the channel for the Buena Vista Creek Channel Maintenance District, which is 20% of the channel for the district each year • Track and monitor areas for plant and trash removal for flood capacity purposes • Track and monitor service times to ensure timely service for service requests Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Citywide Streetlight Replacement Program Audit and bid of Phase 2 complete Phase 2 program completed Initiate Phase 3 planning 100% Quality of Life & Safety Percentage of Buena Vista Creek Channel cleaned and reported for permitting (equivalent to 20% of district annually) 100% 100% 100% 100% Sustainability & the Natural Environment D-26 PUBLIC WORKS | UTILITIES: SUMMARY UTILITIES • Potable Water Operations • Recycled Water Operations • Wastewater Operations 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 5,538,360$ 6,166,382$ 6,883,606$ 7,074,608$ Retirement Benefits 1,651,672 1,412,569 1,494,179 1,740,693 Health Insurance 944,651 986,384 1,210,607 996,366 Other Personnel Expenses (1,281,540) 639,327 327,775 405,106 Personnel Services Subtotal 6,853,143 9,204,662 9,916,167 10,216,773 Operating Expenses Professional & Contract Services 12,700,325 14,281,821 18,382,403 18,618,491 Supplies & Materials 28,976,575 29,582,207 34,826,472 38,008,440 Repair & Maintenance 437,116 237,849 433,521 579,793 Interdepartmental Charges 5,153,827 5,608,797 6,862,721 6,418,771 Other Operating Expenses 12,810,418 14,061,791 19,248,629 28,376,484 Capital Outlay 77,638 138,228 7,150 7,150 Operating Expenses Subtotal 60,155,899 63,910,693 79,760,896 92,009,129 TOTAL EXPENDITURES 67,009,042$ 73,115,355$ 89,677,063$ 102,225,902$ Full Time Positions 63.95 64.50 63.50 63.50 Hourly/FTE Positions 0.50 0.50 0.50 0.50 D-27 PUBLIC WORKS | UTILITIES: POTABLE WATER OPERATIONS Account: 5016310 Fund: Enterprise ABOUT To ensure safe, high-quality drinking water is available to Carlsbad Municipal Water District customers on-demand, CMWD provides ongoing operation and maintenance of the following: nine storage reservoirs or tanks, 457 miles of pipeline, 17 pressure zones, 71 pressure regulating stations, three pumping stations, approximately 14,300 valves, 4,500 fire hydrants and 29,500 potable meters. CMWD purchases potable water from its wholesale water provider, San Diego County Water Authority, which includes desalinated water from the Carlsbad Desalination Plant. CMWD implements a water asset management plan to minimize the total cost of owning and operating utility assets while continuing to deliver high levels of service at acceptable levels of risk. SERVICES • Operate and maintain reservoirs, pressure regulating stations, pump stations, transmission and distribution pipelines, valves, meters and other appurtenances • Deliver reliable, safe drinking water and fire flow demand • Comply with all water-related health, safety and environmental regulations including state and federal drinking water standards for water quality sampling and reporting • Implement effective water conservation and rebate programs, including public education, leak detection studies, leak repair and compliance with conservation laws • Work with other water agencies and the San Diego County Water Authority on regional water-related projects and budgets 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 2,775,502$ 2,989,633$ 3,297,868$ 3,377,622$ Retirement Benefits 777,841 660,682 722,595 834,310 Health Insurance 539,133 571,740 603,202 498,021 Other Personnel Expenses (934,811) 388,232 159,114 195,972 Personnel Services Subtotal 3,157,665 4,610,287 4,782,779 4,905,925 Operating Expenses Professional & Contract Services 7,250,138 7,541,456 9,205,538 9,416,330 Supplies & Materials 26,320,138 26,280,782 31,440,899 34,565,384 Repair & Maintenance 384,355 223,572 290,050 458,550 Interdepartmental Charges 2,964,704 3,160,653 3,765,584 3,475,547 Other Operating Expenses 4,222,292 5,213,523 5,271,353 5,333,055 Capital Outlay 16,957 64,415 3,600 3,600 Operating Expenses Subtotal 41,158,584 42,484,401 49,977,024 53,252,466 TOTAL EXPENDITURES 44,316,249$ 47,094,688$ 54,759,803$ 58,158,391$ Full Time Positions 30.55 30.95 31.05 31.15 Hourly/FTE Positions 0.20 0.00 0.00 0.00 D-28 RECENT ACCOMPLISHMENTS • Completed construction of the Downtown and Terramar small diameter water pipeline replacement project • Completed the inventory of lead service lines to comply with EPA’s recent Lead and Copper Rule regulations • Protected the potable water supply by testing approximately 285 city backflow devices and conducting 158 cross-connection tests • Completed the design to replace broken or malfunctioning valves at 20 operationally critical locations to control flow and minimize disruption of service during shutdowns • Substantially completed construction of the Palomar Airport water line replacement project • Initiated the first phase of the Supervisory Control and Data Acquisition (SCADA) replacement project to improve remote monitoring and control of critical water infrastructure • Completed scheduled inspection of reservoirs to inform future maintenance and updated over 8,000 malfunctioning meter-data transmitters to improve efficiency and accuracy GOALS • Minimize costs to customers while continuing to provide high levels of service at acceptable risk and meet all state and federal water quality standards for safe drinking water • Optimize asset management by increasing the use of technology to improve and manage the infrastructure system more efficiently and effectively • Update the cost of services study to forecast financial needs and inform future rate adjustments • Initiate an update of the 2020 Risk and Resilience Assessment as required by the Environmental Protection Agency • Update the 2020 Urban Water Management Plan per state regulations • Implement new regulations for water use efficiency standards issued by the Department of Water Resources and the State Water Resources Control Board • Proactively conduct leak detection surveys to identify where pipeline repairs may be needed • Update the 2019 Potable Water Master Plan to evaluate the water distribution system and inform operational modifications for better system performance, reliability and redundancy and to identify system capacity needs for future growth • Complete construction of the Carlsbad Boulevard at Terramar water main line replacements • Complete construction of pressure regulating stations at El Fuerte Street and at Melrose Drive and Poinsettia Lane • Stay within the industry benchmark for water main breaks of 3.4 to 19.4 breaks per 100 miles of pipeline, or less, per the American Water Works Association Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Pipeline breaks per 100 miles of pipe 0.66 <3.4 <3.4 3.4-19.4 Quality of Life & Safety Percentage of annual drinking water quality standards met 100% 100% 100% 100% Quality of Life & Safety D-29 PUBLIC WORKS | UTILITIES: RECYCLED WATER OPERATIONS Account: 5026310 Fund: Enterprise ABOUT The Carlsbad Municipal Water District owns the Carlsbad Water Recycling Facility located next to the Encina Wastewater Authority treatment plant. CMWD takes treated wastewater from that plant and further treats it to the State of California Title 22 recycled water quality standards and then delivers this water to customers for irrigation and certain industrial uses. This effort reduces the amount of wastewater that would normally be released by the wastewater treatment plant into the ocean outfall, reduces dependence on imported drinking water, and provides customers with a reliable local water supply for non-potable purposes. Recycled water is not subject to state water conservation requirements. CMWD implements a recycled water asset management plan to minimize the total cost of owning and operating utility assets while continuing to deliver high levels of service at acceptable levels of risk. Delivery of this water includes the operation and maintenance of the recycled water system’s three storage tanks, four pump stations, three pressure regulating stations, six pressure zones, approximately 97 miles of pipelines, 1,050 valves and 1,010 meters. CMWD’s cross-connection control and backflow program ensures a safe supply of drinking water by preventing cross-contamination from the recycled system into the potable system, in accordance with federal and state regulations. CMWD also purchases and delivers recycled water from the Vallecitos Water District’s Meadowlark Water Reclamation Facility. 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 1,040,554$ 1,237,172$ 1,310,203$ 1,372,294$ Retirement Benefits 350,713 290,526 266,704 330,041 Health Insurance 143,591 156,081 176,778 176,276 Other Personnel Expenses 41,288 52,192 57,615 76,390 Personnel Services Subtotal 1,576,146 1,735,971 1,811,300 1,955,001 Operating Expenses Professional & Contract Services 1,425,672 1,568,675 2,373,450 2,291,424 Supplies & Materials 2,361,161 2,802,075 3,023,586 3,071,606 Repair & Maintenance 19,524 53 22,743 27,743 Interdepartmental Charges 818,951 936,876 1,168,003 990,319 Other Operating Expenses 3,581,538 3,144,958 3,448,290 2,476,606 Capital Outlay - - 1,750 1,750 Operating Expenses Subtotal 8,206,846 8,452,637 10,037,822 8,859,448 TOTAL EXPENDITURES 9,782,992$ 10,188,608$ 11,849,122$ 10,814,449$ Full Time Positions 13.30 12.75 10.85 11.45 Hourly/FTE Positions 0.10 0.50 0.50 0.50 D-30 SERVICES • Operate and maintain infrastructure, including the Carlsbad Water Recycling Facility, reservoirs, pressure regulating stations, pump stations, pipelines, valves and meters • Treat wastewater to meet State of California Title 22 recycled water requirements • Deliver recycled water for irrigation and some industrial uses through the recycled water system • Perform inspections on systems and backflows to prevent cross-connections and protect the potable water system • Convert irrigation sites from potable water to recycled water as service becomes available RECENT ACCOMPLISHMENTS • Received an award of $1 million in recycled water grants • Performed inspections at all recycled water use sites to inform site operators of any modifications needed to comply with guidelines for the safe use of recycled water • Completed recycled tank inspections and cleaning to proactively maintain system assets on a regular 5-year cycle • Initiated the first phase of the SCADA system replacement project to improve remote monitoring and control of critical recycled water infrastructure • Initiated construction of the roof replacement project at the Carlsbad Water Recycling Facility to extend the life of system facilities GOALS • Complete construction of a new 1.5-million-gallon Phase 3 recycled water tank, D-4 • Stay within the industry benchmark for water main breaks of 3.4 to 19.4 breaks per 100 miles of pipeline, per the American Water Works Association, or less • Update the cost of services study to forecast financial needs and inform future rate adjustments • Maintain recycled water cost at or below 75% of potable water irrigation cost to encourage the use of recycled water Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Pipeline breaks per 100 miles of pipe 0 < 3.4 < 3.4 3.4-19.4 Quality of Life & Safety Cost of recycled water as a percent of potable water cost 72% 73% 75% < 75% Organizational Excellence & Fiscal Health D-31 PUBLIC WORKS | UTILITIES: WASTEWATER OPERATIONS Account: 5116310 Fund: Enterprise ABOUT The Utilities Department is responsible for providing wastewater services to approximately 85,000 customers within the city’s service area. The Utilities wastewater mission is to prevent sewer spills and convey waste efficiently to the Encina Wastewater Authority’s treatment plant by properly managing, operating and maintaining all parts of the city’s sewer system. A portion of Carlsbad’s treated wastewater is diverted from the ocean outfall and sent to the Carlsbad Water Recycling Facility for further treatment. The Wastewater Division maintains a sanitary sewage collection system that includes 11 wastewater lift stations and wet wells and about 270 miles of gravity main lines, six miles of pressurized main lines, and approximately 6,200 access holes. The Utilities Department implements a robust wastewater asset management program to minimize the total cost of owning and operating utility assets while continuing to deliver high levels of service at acceptable levels of risk. SERVICES • Operate and maintain infrastructure such as lift stations, wet wells, gravity sewer mains, force mains, maintenance access holes and other elements • Collect wastewater and convey it to the Encina Wastewater Authority treatment plant 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 1,722,304$ 1,939,577$ 2,275,535$ 2,324,692$ Retirement Benefits 523,118 461,361 504,880 576,342 Health Insurance 261,927 258,563 430,627 322,069 Other Personnel Expenses (388,017) 198,903 111,046 132,744 Personnel Services Subtotal 2,119,332 2,858,404 3,322,088 3,355,847 Operating Expenses Professional & Contract Services 4,024,515 5,171,690 6,803,415 6,910,737 Supplies & Materials 295,276 499,350 361,987 371,450 Repair & Maintenance 33,237 14,224 120,728 93,500 Interdepartmental Charges 1,370,172 1,511,268 1,929,134 1,952,905 Other Operating Expenses 5,006,588 5,703,310 10,528,986 20,566,823 Capital Outlay 60,681 73,813 1,800 1,800 Operating Expenses Subtotal 10,790,469 12,973,655 19,746,050 29,897,215 TOTAL EXPENDITURES 12,909,801$ 15,832,059$ 23,068,138$ 33,253,062$ Full Time Positions 20.10 20.80 21.60 20.90 Hourly/FTE Positions 0.20 0.00 0.00 0.00 D-32 • Conduct closed-circuit camera reviews of pipelines to determine pipeline integrity • Participate in the activities and budgets of the Encina Wastewater Authority as part of the Encina Joint Powers Authority • Prevent wastewater spills to protect the environment • Administer the city’s Fats, Oils and Grease program to prevent pipeline clogs and subsequent wastewater spills • Conduct public outreach regarding what can go into drains to prevent spills and other issues RECENT ACCOMPLISHMENTS • Completed construction of the Villas Lift Station Replacement project • Completed construction to replace a gravity sewer pipeline in Kelly Drive • Identified one mile of damaged pipe segments through proactive asset management and rehabilitated these sections using cost-effective lining methods to extend the life of the sewer system • Started construction to replace aged sewer mains and access holes along Carlsbad Boulevard and Cannon Road • Started construction of the generator replacement project at the Poinsettia Lift Station for system reliability where the existing generator is at end of its useful life • Initiated the first phase of the SCADA system replacement project to improve remote monitoring and control of critical wastewater infrastructure GOALS • Update the 2019 Sewer Master Plan to evaluate the wastewater collection system and inform operational modifications for better system performance, reliability and redundancy and to identify system capacity needs for future growth • Minimize costs to customers while maintaining high levels of service at acceptable risk • Optimize asset management by increasing the use of technology to improve and manage the infrastructure system more efficiently and effectively • Complete the generator replacement project at Chinquapin Lift Station for system reliability where the existing generator has met the end of its useful life • Initiate the design of upgrades at Poinsettia, Cannon and Chinquapin lift stations • Update the cost of services study to forecast financial needs and inform future rate adjustments • Perform an audit of the 2019 Sewer System Management Plan to assess and inform modification to operations and maintenance programs, such as cleaning sewer pipe in line with the department’s preventive maintenance schedule, to effectively prevent and minimize sewer overflows • Install additional access hole sensors at select locations to minimize the risk of sewer spills using early detection of higher-than-expected flows in gravity sewer systems Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Rate of spills per 100 miles of pipe 0.38 < 0.38 < 0.38 0.2-7.0 Quality of Life & Safety Department goal for amount of sewer pipe cleaned per year 100% 100% 100% 100% Quality of Life & Safety E-1 COMMUNITY SERVICES The Community Services Branch includes programs, services and events that support Carlsbad's excellent quality of life. The branch includes the following key areas of focus: • Community Service Administration • Community Development • Housing & Homeless Services • Library & Cultural Arts • Parks & Recreation These city service areas ensure the city’s planning and building policies are carried out, foster lifelong learning, support strong neighborhoods, administer affordable housing and homeless response programs, attend to the community’s health and wellness, and promote transparency in government. Gary Barberio Deputy City Manager, Community Services 442-339-2822 gary.barberio@carlsbadca.gov E-2 E-3 COMMUNITY SERVICES | ADMINISTRATION Account: 0012410 Fund: General ABOUT The Community Services Branch provides programs and services that promote and support Carlsbad’s excellent quality of life. Community Services Administration provides leadership to the Community Services Branch and provides oversight and management of the city’s real estate assets. SERVICES Functional areas include department management, budget oversight and real estate services. The Community Services Branch ensures that the city’s planning, land development engineering, building and code enforcement policies are carried out, that affordable housing and homelessness programs are administered, that lifelong learning is fostered, that library and cultural arts services are delivered, that the city’s health and wellness are advanced through parks, recreation and senior services and that the city’s real estate assets are well managed. RECENT ACCOMPLISHMENTS • Executed three agreements for cell site facilities on city properties generating extra revenue • Initiated Surplus Land Act process to dispose of the Farmers and The Shoppes properties • Completed 5-year update to the city’s Real Estate Strategic Plan • Obtained City Council approval for citywide and Village & Barrio Objective Design Standards for multifamily housing and mixed-use projects helping the city retain some control over new development and streamline the city’s permitting process to comply with new state laws 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 416,086$ 421,111$ 382,197$ 389,249$ Retirement Benefits 122,145 101,615 88,542 100,018 Health Insurance 57,361 55,299 37,759 42,719 Other Personnel Expenses 13,731 12,775 11,530 10,747 Personnel Services Subtotal 609,323 590,800 520,028 542,733 Operating Expenses Professional & Contract Services 14,057 11,682 9,000 9,000 Supplies & Materials 678 356 2,200 2,200 Repair & Maintenance - - - - Interdepartmental Charges 38,496 43,632 52,433 36,578 Other Operating Expenses 1,025 261 1,750 1,750 Capital Outlay - - - - Operating Expenses Subtotal 54,256 55,931 65,383 49,528 TOTAL EXPENDITURES 663,579$ 646,731$ 585,411$ 592,261$ Full Time Positions 3.00 3.00 2.00 2.00 Hourly/FTE Positions 0.00 0.00 0.00 0.00 E-4 • Completed Housing Element Rezone Program and Public Safety Element Update • Developed a new permit-ready accessory dwelling unit program providing applicants with pre-approved plans • Growth Management Citizens Committee developed a report to update the current Growth Management Plan and presented recommendations to the City Council in July 2023 • Updated the Homelessness Action Plan • Administered the Affordable Housing Resale Program, with the purchase and sale of 4 units • Received $1,162,504 Permanent Local Housing Allocation grant to support activities outlined in the Homelessness Action Plan • Secured a $2.3 million Encampment Resolution Grant to support people experiencing homelessness in the Barrio Area • Received a $2 million Capital Emergency Housing Grant to expand shelter options in the city • Secured a $468,252 annual HUD Continuum of Care grant to expand the rapid re-housing contract with Community Resource Center • Completed an MOU with Carlsbad Friends of the Arts • Launched Canto, a digital asset management system that will make digital resources like historic photographs available to the community • Completed the bid process for the technological upgrade to the Schulman Auditorium • Completed the 2023-2030 Parks & Recreation Department Master Plan Update • Completed Park-In-Lieu fee study and presented findings to City Council for consideration • Improved driving range furniture and fixtures, including new turf tee line, bag racks and automated ball machine, increasing driving range usage and revenue at The Crossings GOALS • Draft and finalize as many as four license agreements for cell site facilities on city properties • Complete a lease extension for MAAC at the Library Learning Center • Complete acquisition and disposition of the Chestnut Apartments property • Complete Bluebeam Pilot Program, allowing staff to make corrections and comments directly onto electronically submitted development plans and studies • Research and update short-term rental permitting processes/business license fee collection • Present to the City Council the program and schedule for implementing the recommendations from the Carlsbad Tomorrow: Growth Management Citizens Committee • Continue implementation of the remaining Housing Element program objectives • Complete processing of rental assistance vouchers for 25 non-elderly, disabled participants • Initiate a $600,000 RFID hardware upgrade through the city’s technology project process • Complete MOUs with Friends of the Library and Carlsbad Library & Arts Foundation • Complete the technology upgrades for the Schulman Auditorium • Host nine TGIF concerts with new security measures in place • Pursue the CAPRA accreditation process to be re-accredited within the next two years • Expand adult 50+ opportunities beyond the Senior Center to include an Older & Bolder Expo • Develop a professional photography policy & fee schedule at Leo Carrillo Ranch Historic Park • Plant 500 new trees consistent with the Community Forest Management Plan • Increase number of recycling receptacles at city park and trail facilities by 63% • Renovate the course restrooms and snack bar to improve guest experience at The Crossings E-5 COMMUNITY SERVICES | COMMUNITY DEVELOPMENT: SUMMARY COMMUNITY DEVELOPMENT • Administration • Land Development Engineering • Planning • Building • Code Enforcement 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 5,010,684$ 5,118,694$ 5,644,085$ 5,761,325$ Retirement Benefits 1,500,121 1,222,132 1,250,462 1,414,426 Health Insurance 716,552 719,272 925,126 856,270 Other Personnel Expenses 195,485 189,711 213,684 194,461 Personnel Services Subtotal 7,422,842 7,249,809 8,033,357 8,226,482 Operating Expenses Professional & Contract Services 1,637,536 2,617,306 1,305,683 955,683 Supplies & Materials 96,500 79,589 97,314 92,601 Repair & Maintenance 777 58 370 370 Interdepartmental Charges 1,094,448 1,335,324 1,550,984 1,693,726 Other Operating Expenses 38,518 61,725 25,250 29,963 Capital Outlay - - - - Operating Expenses Subtotal 2,867,779 4,094,002 2,979,601 2,772,343 TOTAL EXPENDITURES 10,290,621$ 11,343,811$ 11,012,958$ 10,998,825$ General Fund 10,276,086$ 11,321,446$ 11,012,958$ 10,998,825$ Special Revenue Fund 14,535$ 22,365$ -$ -$ TOTAL FUNDING 10,290,621$ 11,343,811$ 11,012,958$ 10,998,825$ Full Time Positions 53.00 52.00 52.00 51.00 Hourly/FTE Positions 9.00 9.00 7.00 7.00 E-6 COMMUNITY SERVICES | COMMUNITY DEVELOPMENT: ADMINISTRATION Account: 0013010 Fund: General ABOUT Community Development Administration provides leadership, financial assistance and administrative support for the delivery of land development programs and services; plans for the efficient use of resources and facilities; and provides liaison services, resource assistance and technical guidance to the Historic Preservation Commission, Planning Commission and City Council. Community Development Administration adds value to organizational processes and procedures to ensure best practices are implemented and that they support the broader goals of the organization. SERVICES • Provide organizational leadership and administrative support • Manage and oversee operating budget • Manage contract administration and records • Support the department’s business systems and technology 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 919,967$ 949,093$ 971,639$ 991,181$ Retirement Benefits 253,252 216,876 229,982 251,861 Health Insurance 131,212 126,866 149,355 154,123 Other Personnel Expenses 33,083 30,673 34,396 31,149 Personnel Services Subtotal 1,337,514 1,323,508 1,385,372 1,428,314 Operating Expenses Professional & Contract Services 154,694 184,457 35,000 35,000 Supplies & Materials 31,004 25,923 44,387 44,387 Repair & Maintenance - 26 20 20 Interdepartmental Charges 168,132 341,076 244,918 291,062 Other Operating Expenses 3,992 8,566 3,700 3,700 Capital Outlay - - - - Operating Expenses Subtotal 357,822 560,048 328,025 374,169 TOTAL EXPENDITURES 1,695,336$ 1,883,556$ 1,713,397$ 1,802,483$ Full Time Positions 7.00 7.00 7.00 7.00 Hourly/FTE Positions 2.50 1.00 0.50 0.50 E-7 RECENT ACCOMPLISHMENTS • Expanded the Customer Self Service Portal allowing customers to apply for more online permits including Residential Pool, Commercial Solar and Commercial Signs • Expanded Customer Self Service Portal to allow for digital uploads of residential solar installation photos to streamline inspections • Expanded the hotline appointment system to offer appointments for landscape submittals • Launched SolarApp+ to allow same-day approval of typical solar photovoltaic installations for contractors • Beta-tested Electronic Review Pilot Program for paperless plan check/review in both EnerGov and Bluebeam • Added Private Property Permits as a new permit to EnerGov for better internal tracking • Posted new bulletins to help the public understand complex and evolving land use issues • Leveraged EnerGov to send system emails to customers during the development process to keep them better informed on permit status • Successfully executed a significant EnerGov system upgrade • Updated the Community Development website with new content and improved organization and resources, including updated and new informational bulletins GOALS • Continue to expand the use of the Citizens Access Portal to allow for the submittal and review of more complex permit types • Complete the Bluebeam Pilot Program pilot, which will allow staff to make corrections and comments directly onto electronically submitted development plans and studies • Continue to identify and implement process improvements that help simplify and streamline permit intake, routing, and customer service delivery and interactions E-8 COMMUNITY SERVICES | COMMUNITY DEVELOPMENT: LAND DEVELOPMENT ENGINEERING Account: 0013110 0013120 Fund: General ABOUT  The Land Development Engineering Division ensures that all grading and public improvements required for new development projects and work in the public right-of-way comply with adopted codes and engineering standards. SERVICES  • Review and process requests to subdivide land • Perform plan checking and permitting for grading and public improvements projects • Provide flood plain administration and residential assistance  • Maintain the engineering section of the public counter   • Provide customer service and effective public information  RECENT ACCOMPLISHMENTS   • Updated the Best Management Practices Manual • Completed a comprehensive update to the Transportation Demand Management Handbook 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 1,170,996$ 1,163,243$ 1,244,455$ 1,222,476$ Retirement Benefits 342,375 281,895 277,660 299,509 Health Insurance 200,704 199,446 223,862 201,192 Other Personnel Expenses 43,016 41,649 46,675 40,661 Personnel Services Subtotal 1,757,091 1,686,233 1,792,652 1,763,838 Operating Expenses Professional & Contract Services 253,535 358,485 220,183 220,183 Supplies & Materials 3,081 3,941 4,400 2,400 Repair & Maintenance - - - - Interdepartmental Charges 227,256 228,240 308,214 282,321 Other Operating Expenses 3,064 10,398 4,700 6,700 Capital Outlay - - - - Operating Expenses Subtotal 486,936 601,064 537,497 511,604 TOTAL EXPENDITURES 2,244,027$ 2,287,297$ 2,330,149$ 2,275,442$ Full Time Positions 11.00 11.00 11.00 10.00 Hourly/FTE Positions 1.00 1.50 1.50 1.50 E-9 • Issued 1,042 engineering permits • Performed 3,464 reviews for ministerial and discretionary permits GOALS  • Implement processing changes to streamline permit reviews to consistently meet key performance targets • Continue to expand implementation of the Customer Self Service Portal to allow processing of additional permit types, such as right-of-way permits   • Develop and test electronic plan checking • Continue to refine procedures and adopt new technology to enhance the customer experience  • Complete discretionary permit plan check reviews within 21 days of submittal and building permit plan check reviews within 14 days of submittal, at least 80% of the time Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Percentage of discretionary permit plan check reviews completed within 21 days of submittal 81% 84% 80% ≥80% Organizational Excellence & Fiscal Health Percentage of building permit plan check reviews completed within 14 days of submittal 84% 78% 81% ≥80% Organizational Excellence & Fiscal Health SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET In response to City Council feedback requesting staff identify additional ways to contain ongoing operational costs within the organization, staff conducted a review of staffing levels, workload and existing vacancies in an effort to find new opportunities for savings. As part of this effort, Community Development eliminated a vacant associate engineer position primarily responsible for performing grading and improvement plan checks and discretionary permit reviews. The duties of this position will be distributed to existing staff without a significant service level impact. E-10 COMMUNITY SERVICES | COMMUNITY DEVELOPMENT: PLANNING Account: 00132XX 1752510 Fund: General Special Revenue – Habitat Mitigation ABOUT The Planning Division is responsible for developing, updating and maintaining the city’s land use regulations (i.e., General Plan, Local Coastal Program and Zoning Ordinance) pursuant to City Council direction and state mandates, as well as ensuring new growth and development complies with those established regulations. SERVICES • Maintain and modify plans, ordinances and policies for housing and local coastal resource plans • Ensure new development adheres to all applicable land use codes, policies and regulations • Ensure private and public projects comply with the California Environmental Quality Act and the city’s environmental protection procedures   2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 1,779,631$ 1,677,398$ 2,022,884$ 2,078,807$ Retirement Benefits 560,360 440,567 452,321 514,606 Health Insurance 205,721 187,142 289,155 253,654 Other Personnel Expenses 70,115 65,330 75,456 69,554 Personnel Services Subtotal 2,615,827 2,370,437 2,839,816 2,916,621 Operating Expenses Professional & Contract Services 508,709 1,119,880 551,000 201,000 Supplies & Materials 38,821 25,393 32,650 30,650 Repair & Maintenance 287 - - - Interdepartmental Charges 313,044 359,412 424,868 509,548 Other Operating Expenses 22,460 36,019 11,400 13,400 Capital Outlay - - - - Operating Expenses Subtotal 883,321 1,540,704 1,019,918 754,598 TOTAL EXPENDITURES 3,499,148$ 3,911,141$ 3,859,734$ 3,671,219$ General Fund 3,484,613$ 3,888,776$ 3,859,734$ 3,671,219$ Special Revenue 14,535 22,365 - - TOTAL FUNDING 3,499,148$ 3,911,141$ 3,859,734$ 3,671,219$ Full Time Positions 20.00 20.00 19.00 19.00 Hourly/FTE Positions 1.00 1.50 2.00 2.00 E-11 • Respond to questions and inquiries related to permit processing and development standards • Provide technical support to the Planning Commission and the City Council  • Continuously enhance permit review process for efficiencies and implement streamlining processes RECENT ACCOMPLISHMENTS   • Worked with the City Council-appointed Growth Management Citizens Committee to develop a report to update the current Growth Management Plan and presented report of these recommendations to the City Council in July 2023 (Carlsbad Tomorrow Citizen's Committee Recommendations) • Developed and presented the Housing Sites Rezoning Program for City Council consideration • Developed and presented citywide and Village & Barrio Objective Design Standards specific to the village and barrio communities and citywide for multi-family housing for City Council consideration • Developed and presented a comprehensive update to the city’s Public Safety Element for City Council consideration • Received City Council approval to move forward with permitting Hope Apartments, a 156- unit apartment complex • Facilitated public projects such as Beach Access Repairs, East-West Corridor Multi-Modal Safety Improvements, Terramar Area Water and Sewer, El Camino Real Widening from Sunny Creek to Jackspar and Carlsbad Boulevard Restriping • Presented options to and received direction from the City Council related to smoke-free multi-family housing which is important to renters and owners in the city to limit their exposure to secondhand smoke GOALS  • Ensure discretionary plan check review completed within 30 days of submittal, at least 90% of the time • Ensure building permit plan check review completed within 14 days of submittal, at least 80% of the time • Continue implementation of Housing Element program objectives • Return to the City Council and initiate the next steps to implement the recommendations from the Carlsbad Tomorrow: Growth Management Citizens Committee Performance Measure FY 2022 Actual FY 2023 Actual FY 2024 Projected Benchmark Related Strategic Plan Goal Percentage of discretionary permit plan check reviews completed within 30 days of submittal 86.3% 87% 94% ≥90% Organizational Excellence & Fiscal Health Percentage of building permit plan check reviews completed within 14 days of submittal 69.6% 61% 84% ≥80% Organizational Excellence & Fiscal Health E-12 COMMUNITY SERVICES | COMMUNITY DEVELOPMENT: BUILDING Account: 0013610 Fund: General ABOUT  The Building Division staff are the main point of contact for individuals wanting to build or modify a structure on their property. Building staff provide guidance and review projects for conformance with state and local building standards. Once a permit has been issued to authorize construction, a building inspector is assigned to help the property owner ensure that the contractor’s work is consistent with approved plans.   SERVICES  • Conduct fee assessment, plan review, permit issuance and inspection for compliance with state and local codes including recycling, stormwater, energy generation and conservation  • Respond to questions and inquiries related to permit processing and construction standards • Provide information related to ongoing construction projects and historical building records • Maintain records during construction and prepare files for electronic conversion following final approval   2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 740,058$ 806,520$ 833,044$ 864,999$ Retirement Benefits 229,988 185,953 180,528 212,363 Health Insurance 127,233 135,124 153,419 144,052 Other Personnel Expenses 30,194 31,654 33,258 30,476 Personnel Services Subtotal 1,127,473 1,159,251 1,200,249 1,251,890 Operating Expenses Professional & Contract Services 664,436 925,590 449,000 449,000 Supplies & Materials 3,971 9,364 4,127 3,414 Repair & Maintenance 457 21 250 250 Interdepartmental Charges 260,016 269,304 361,643 375,690 Other Operating Expenses 5,224 2,633 2,700 3,413 Capital Outlay - - - - Operating Expenses Subtotal 934,104 1,206,912 817,720 831,767 TOTAL EXPENDITURES 2,061,577$ 2,366,163$ 2,017,969$ 2,083,657$ Full Time Positions 10.00 10.00 9.00 9.00 Hourly/FTE Positions 1.00 1.50 1.00 1.00 E-13 RECENT ACCOMPLISHMENTS   • Issued 5,352 building permits valued at over $313 million in 2023 • Conducted 13,607 inspection stops, resulting in 17,346 building inspections in 2023 • Launched SolarApp+ to allow the instantaneous approval of most solar photovoltaic applications • Implemented a digital inspection program for solar photovoltaic installations • Implemented self-certification inspection program that allows qualified individuals to self- certify installation of minor improvements GOALS  • Ensure building plan check review is completed within 14 days of submittal, at least 80% of the time • Ensure building permit inspections occur within 24 hours of request, at least 80% of the time Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Percentage of building permit plan check reviews completed within 14 days of submittal 78% 94% 85% ≥80% Organizational Excellence & Fiscal Health Percentage of building inspections completed within 24 hours of request 100% 97% 95% ≥80% Organizational Excellence & Fiscal Health E-14 COMMUNITY SERVICES | COMMUNITY DEVELOPMENT: CODE ENFORCEMENT Account: 0013620 Fund: General ABOUT The Code Enforcement Division, working with residents and its partner enforcement agencies, is tasked with enforcing the city’s laws that govern land use and quality of life issues, including public nuisances, safety and welfare. The purpose of these laws and their enforcement is to help maintain safe and healthy living and working conditions for the members of the community. The division’s approach is not to be punitive but to first attempt to achieve compliance through education before more formal enforcement methods like citations are applied. SERVICES • Enforce zoning, building, general property maintenance and other municipal codes • Conduct inspections of alleged violations received from resident and business complaints • Proactively enforce violations, including graffiti, signs, active unpermitted construction • Assist individuals on how to secure required permits and/or obtain compliance with applicable codes • Collaborate with partner enforcement agencies on overlapping enforcement cases • Ensure that residents are aware and follow rules on short-term vacation rentals 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 400,032$ 522,440$ 572,063$ 603,862$ Retirement Benefits 114,146 96,841 109,971 136,087 Health Insurance 51,682 70,694 109,335 103,249 Other Personnel Expenses 19,077 20,405 23,899 22,621 Personnel Services Subtotal 584,937 710,380 815,268 865,819 Operating Expenses Professional & Contract Services 56,162 28,894 50,500 50,500 Supplies & Materials 19,623 14,968 11,750 11,750 Repair & Maintenance 33 11 100 100 Interdepartmental Charges 126,000 137,292 211,341 235,105 Other Operating Expenses 3,778 4,109 2,750 2,750 Capital Outlay - - - - Operating Expenses Subtotal 205,596 185,274 276,441 300,205 TOTAL EXPENDITURES 790,533$ 895,654$ 1,091,709$ 1,166,024$ Full Time Positions 5.00 4.00 6.00 6.00 Hourly/FTE Positions 3.50 3.50 2.00 2.00 E-15 RECENT ACCOMPLISHMENTS • Developed a program and fee for returned prohibited temporary signs in the public right-of- way • Improved processes to better achieve targeted performance measures • Conducted the Carlsbad’s first State Mobile Home Park Inspection for the California Department of Housing and Community Development Mobile Home Park Maintenance GOALS • Research and update short-term rental permitting processes and business license fee collection • Continue to develop and expand enforcement tracking system to improve operations management • Develop a tracking system to report data on administrative activities performed within the division • Prioritize the safety and well-being of the community: close all Category 1 cases within three business days of complaint, close all Category 2 cases within 30 business days of complaint, and close all Category 3 cases within 50 business days of complaint, 80% of the time Performance Measure FY 2022 Actual FY 2023 Actual FY 2024 Projected Benchmark Related Strategic Plan Goal Percent of Category 1 cases closed within three business days of complaint 100% 100% 100% ≥80% Economic Vitality Percent of Category 2 cases closed within 30 business days of complaint 70% 85% 90% ≥80% Economic Vitality Percent of Category 3 cases closed within 50 business days of complaint 67% 92% 90% ≥80% Economic Vitality E-16 COMMUNITY SERVICES | HOUSING & HOMELESS SERVICES: SUMMARY HOUSING & HOMELESS SERVICES • Housing Services • Homeless Services • Affordable Housing Programs • Federally Funded Community Assistance Programs • Successor Agency 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 993,770$ 1,351,613$ 1,670,299$ 1,693,014$ Retirement Benefits 280,853 338,493 361,984 406,246 Health Insurance 102,832 181,473 265,173 250,231 Other Personnel Expenses 38,517 50,502 63,325 55,219 Personnel Services Subtotal 1,415,972 1,922,081 2,360,781 2,404,710 Operating Expenses Professional & Contract Services 1,169,814 1,832,504 1,616,141 1,656,901 Supplies & Materials 404,995 244,148 291,037 298,958 Repair & Maintenance 24 26 200 200 Interdepartmental Charges 379,115 507,696 454,534 491,771 Other Operating Expenses 12,089,525 13,677,117 13,558,886 13,563,847 Capital Outlay 13,111 363,864 7,300 8,070 Operating Expenses Subtotal 14,056,584 16,625,355 15,928,098 16,019,747 TOTAL EXPENDITURES 15,472,556$ 18,547,436$ 18,288,879$ 18,424,457$ General Fund 1,788,322$ 2,899,053$ 2,765,195$ 3,232,287$ Special Revenue Fund 12,663,435$ 14,626,910$ 14,464,184$ 15,182,170$ Trust Fund 1,020,799$ 1,021,473$ 1,059,500$ 10,000$ TOTAL FUNDING 15,472,556$ 18,547,436$ 18,288,879$ 18,424,457$ Full Time Positions 14.00 16.00 16.00 16.00 Hourly/FTE Positions 3.00 1.81 1.53 1.53 E-17 COMMUNITY SERVICES | HOUSING & HOMELESS SERVICES: HOUSING SERVICES Account: 0012510 0012520 1502810 171 Fund: General General Special Revenue – Community Grants Special Revenue – Agriculture Mitigation Fee ABOUT The Housing Services Division provides various programs, activities and services that assist in the effort to sustain an extraordinary Carlsbad community. These include disbursing community grants, delivering community education programs, funding the Carlsbad Hiring Center, supporting the Carlsbad Housing Commission and the Agricultural Conversion Mitigation Fee Citizens Advisory Committee. SERVICES • Provide financial assistance to community organizations, teams and special events that benefit and enrich residents in compliance with City Council policies • Fund projects that improve agricultural lands for continued agricultural production, protect and enhance the coastal and lagoon environment, improve lagoon nature centers and restore beaches for public use through the Agricultural Conversion Mitigation Fee program 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 307,167$ 476,412$ 553,155$ 709,088$ Retirement Benefits 90,825 124,248 112,138 163,833 Health Insurance 27,343 55,228 64,554 101,408 Other Personnel Expenses 13,308 17,333 19,640 22,347 Personnel Services Subtotal 438,643 673,221 749,487 996,676 Operating Expenses Professional & Contract Services 250,995 291,178 270,000 271,000 Supplies & Materials 12,003 13,417 12,400 12,400 Repair & Maintenance - - - - Interdepartmental Charges 120,900 167,004 94,021 169,690 Other Operating Expenses 1,715 75,696 54,370 52,950 Capital Outlay - - - - Operating Expenses Subtotal 385,613 547,295 430,791 506,040 TOTAL EXPENDITURES 824,256$ 1,220,516$ 1,180,278$ 1,502,716$ General Fund 824,256$ 1,182,296$ 1,150,278$ 1,472,716$ Special Revenue - 38,220 30,000 30,000 TOTAL FUNDING 824,256$ 1,220,516$ 1,180,278$ 1,502,716$ Full Time Positions 4.50 5.17 4.17 5.90 Hourly/FTE Positions 2.00 0.83 0.75 0.75 E-18 • Provide community education programs, including the Carlsbad Student Leader Academy for high school students and CityStuff for third grade students • Provide low income and homeless services support, including funding to the Carlsbad Hiring Center, which offers temporary day labor employment services, employment training and readiness, access to benefits, basic needs, rental assistance and case management • Administer the Minor Home Repair Program, which provides forgivable home repair loans to low-income households who own and occupy their home as their primary residence • Provide technical and administrative support to the Carlsbad Housing Commission and Agricultural Conversion Mitigation Fee Citizens Advisory Committee • Coordinate with Community Development Department on housing development review, affordability compliance, Housing Element programs and regulatory compliance with state housing laws • Administer the Affordable Housing Resale Program and oversee compliance of existing affordable housing portfolio RECENT ACCOMPLISHMENTS • Conducted the Carlsbad Student Leader Academy with 28 high school student participants and the CityStuff program to 634 third grade students in 28 classrooms in partnership with 7 local elementary schools • Administered the Affordable Housing Resale Program, including the acquisition of 4 units to be sold qualified low-income buyers • Facilitated affordable housing projects including 419 affordable dwelling units in various stages of construction • Received new state grant funds totaling $1,162,504 that will be used to support activities outlined in the Homelessness Action Plan; staff will continue to apply for this ongoing funding source each year GOALS • Continue the Community Activity Grant, Special Events Grant, Community Spirit Grant and Winning Teams Grant programs and process applications for assistance that are consistent with City Council policies • Provide community education to third-grade classrooms (40 total) • Continue to support the Agricultural Conversion Mitigation Fee program • Provide technical and administrative support to the Carlsbad Housing Commission • Continue to support the Carlsbad Service Center that hosts the Carlsbad Hiring Center • Continue to coordinate with Community Development Department on housing development review, affordability compliance, Housing Element programs and regulatory compliance with state housing laws Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Community Grants dispersed $6,000 $5,000 $5,000 N/A Community Character Percentage of 3rd grade classrooms in city educated on civic proficiency and leadership 100% 100% 100% 100% Community Character E-19 COMMUNITY SERVICES | HOUSING & HOMELESS SERVICES: HOMELESS SERVICES Account: 0012540 1362610 Fund: General Special Revenue - PLHA ABOUT The Homeless Services Division is responsible for leading all strategies, initiatives and actions related to the city’s goal of addressing the complex needs of individuals experiencing or at risk of experiencing homelessness in a compassionate and effective manner and reduce the impacts of homelessness on the community. This division uses best practices, community input and feedback from people with lived experience to implement solutions to prevent and reduce homelessness. The strategies and initiatives surround three main areas of focus: shelter and housing, outreach and access to services and public safety. SERVICES • Manage and implement the city’s Homelessness Action Plan • Provide housing navigation services for persons at-risk of or experiencing homelessness • Oversee the homeless outreach and case management contract • Coordinate with neighboring jurisdictions and county resources on homelessness issues • Oversee the limited-term motel voucher program 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 299,810$ 380,346$ 479,026$ 457,937$ Retirement Benefits 62,181 105,547 111,299 119,242 Health Insurance 32,200 58,921 73,405 74,889 Other Personnel Expenses 7,290 13,659 17,235 14,728 Personnel Services Subtotal 401,481 558,473 680,965 666,796 Operating Expenses Professional & Contract Services 558,126 1,077,390 863,000 881,825 Supplies & Materials 3,005 14,968 16,000 16,000 Repair & Maintenance - - - - Interdepartmental Charges - 62,412 46,449 71,700 Other Operating Expenses 1,454 3,514 1,127,629 123,250 Capital Outlay - - - - Operating Expenses Subtotal 562,585 1,158,284 2,053,078 1,092,775 TOTAL EXPENDITURES 964,066$ 1,716,757$ 2,734,043$ 1,759,571$ General Fund 964,066$ 1,716,757$ 1,614,917$ 1,759,571$ Special Revenue - - 1,119,126 - TOTAL FUNDING 964,066$ 1,716,757$ 2,734,043$ 1,759,571$ Full Time Positions 3.50 4.00 4.10 4.00 Hourly/FTE Positions 0.00 0.00 0.00 0.00 E-20 • Engage with community residents and businesses through regular communication efforts • Oversee a contract with the Catholic Charities Diocese of San Diego to provide two licensed clinicians to provide staff at the La Posada de Guadalupe Emergency Shelter with training, allowing the facility to operate as a low barrier shelter • Manage contracts with the following entities: o Community Resource Center, to provide employment and benefits services, as well as rapid rehousing services, helping individuals and households experiencing homelessness o Women’s Resource Center and Brother Benno’s, for shelter and homelessness prevention services o Urban Corps, to remove abandoned items and litter at homeless encampments o Rocket John’s, to provide restroom and sanitation services across the city RECENT ACCOMPLISHMENTS • Updated the Homelessness Action Plan and Annual Funding Plan • Began work on the City Council-approved strategic plan goal addressing the complex needs of individuals experiencing or at risk of experiencing homelessness in a compassionate and effective manner and reduces the impacts of homelessness on the community • Engaged with 565 unduplicated individuals experiencing homelessness in the city via city- funded homelessness service programs, helped transition 105 households into permanent housing, placed 66 people into emergency shelters and cleaned up 106 encampments • Secured a competitive Encampment Resolution Grant of approximately $2.3 million from the State of California to support people experiencing homelessness in the Barrio Area • Received a competitive $2 million Capital Emergency Housing Grant from the County of San Diego to expand shelter options in the city • Secured a $468,252 annual HUD Continuum of Care grant to expand the rapid re-housing contract with Community Resource Center • Assisted 45 households with 416 nights in the short-term motel voucher program GOALS • Enhance the quality of life for everyone in Carlsbad by adopting and implementing an updated Homelessness Action Plan that addresses the complex needs of individuals experiencing or at risk of experiencing homelessness in a compassionate and effective manner and reduces the impacts of homelessness on the community • Implement a State of California Encampment Resolution Funding program grant to address homelessness in the Barrio Area • Implement a public facing dashboard of data on homelessness programs and statistics Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Unduplicated homeless persons served 565 550 550 N/A Quality of Life & Safety Shelter placements 66 75 75 N/A Quality of Life & Safety Persons housed 62 70 70 N/A Quality of Life & Safety Encampments cleared 50 30 30 N/A Quality of Life & Safety E-21 COMMUNITY SERVICES | HOUSING & HOMELESS SERVICES: AFFORDABLE HOUSING PROGRAMS Account: 133, 134 806 Fund: Special Revenue – Affordable Housing Trust Special Revenue – Tyler Court Apartments ABOUT The city is a regional leader in the provision of affordable housing. The Affordable Housing Trust Fund Program is the city’s primary source of affordable housing funding for low-income households. The Affordable Housing Trust Fund collects fees generated from the Inclusionary Housing In-Lieu Fee and the sale of affordable housing credits that satisfy a developer’s inclusionary housing obligation as well as loan repayments from existing developments. With these funds, the city provides affordable housing programs, low income and homeless services support, and financial assistance for residential developments that provide housing opportunities to low-income households. The city also owns Tyler Court Senior Apartments, a 75-unit senior apartment complex. This complex provides for 100% affordable housing to senior households with incomes at 30% and 50% of the San Diego County Area median incomes. The city has an agreement with a third party to manage the day-to-day operations of the apartment complex. The property is intended to remain a senior-only development according to its approved conditional use permit and continues to have income and rent restrictions to be affordable to very low and extremely low-income households. 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 20,667$ 49,011$ 97,639$ 95,391$ Retirement Benefits 14,885 11,673 22,526 23,888 Health Insurance 3,474 11,523 18,963 17,352 Other Personnel Expenses 2,559 2,222 4,012 3,287 Personnel Services Subtotal 41,585 74,429 143,140 139,918 Operating Expenses Professional & Contract Services 322,866 335,550 357,141 399,086 Supplies & Materials 381,112 210,111 253,672 261,493 Repair & Maintenance - - - - Interdepartmental Charges 64,224 63,990 58,423 25,032 Other Operating Expenses 329,655 387,325 453,377 450,628 Capital Outlay 13,111 363,864 7,300 8,070 Operating Expenses Subtotal 1,110,968 1,360,840 1,129,913 1,144,309 TOTAL EXPENDITURES 1,152,553$ 1,435,269$ 1,273,053$ 1,284,227$ Full Time Positions 0.60 0.80 1.20 1.10 Hourly/FTE Positions 1.00 0.06 0.06 0.06 E-22 SERVICES • Administer the Housing Trust Fund in accordance with City Council Policy 90 which outlines the priorities, expectations and policies for Housing Trust Fund administration • Provide affordable housing funding for low-income households via the Affordable Housing Trust Fund Program • Continue to implement the Inclusionary Housing Ordinance by providing information to developers, the public and city staff on the requirements of the ordinance • Negotiate and prepare affordable housing agreements and density bonus agreements • Assist with the development of low-income affordable housing developments from concept to construction • Oversee the third-party managed Tyler Court Senior Apartments RECENT ACCOMPLISHMENTS • Updated the city’s Minor Home Repair Program that provides loans to homeowners of single-family dwelling units within the city limits for minor home repairs • Completed exterior painting and awning replacement at Tyler Court Senior Apartments GOALS • Continue to work with residential developers with inclusionary housing requirements to produce additional homes affordable to lower-income households • Research and develop other programs and development opportunities to increase the supply of affordable housing for low-income households • Preserve and improve the quality of the city’s existing housing stock • Continue to support the low-income senior community by offering affordable housing with income and rent restrictions E-23 COMMUNITY SERVICES | HOUSING & HOMELESS SERVICES: FEDERALLY FUNDED COMMUNITY ASSISTANCE PROGRAMS Account: 190 391 Fund: Special Revenue – Section 8 Housing Special Revenue – Community Development Block Grant ABOUT The city receives federal grants that benefit the community and low-income households. The federally funded Section 8 Housing Choice Voucher rental assistance program provides monthly rental subsidies to very low-income households and processes new participants into the program as additional funds are available. The Community Development Block Grant program represents federal funds provided to the city to develop viable urban communities through the provision of decent housing, a suitable living environment and expanded economic opportunities for lower-income persons. This program is focused on providing specific benefits to low-income residents, with serving the city’s homeless population and providing affordable housing as the two highest priorities. SERVICES • Provide monthly rental subsidies to very low-income households and process new participants as for the federally funded Section 8 Housing Choice Voucher rental assistance program • Assist low-income households with access to safe and sanitary rental housing • Ensure the Section 8 Housing Choice Voucher tenant-based rental assistance program is being administered in compliance with federal regulations and guidelines, the Carlsbad Administrative Plan and the Public Housing Agency Plan 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 366,126$ 445,844$ 540,479$ 430,598$ Retirement Benefits 112,962 97,025 116,021 99,283 Health Insurance 39,815 55,801 108,251 56,582 Other Personnel Expenses 15,360 17,288 22,438 14,857 Personnel Services Subtotal 534,263 615,958 787,189 601,320 Operating Expenses Professional & Contract Services 37,827 128,188 96,000 94,990 Supplies & Materials 8,875 5,652 8,965 9,065 Repair & Maintenance 24 26 200 200 Interdepartmental Charges 186,707 206,622 255,641 225,349 Other Operating Expenses 10,743,186 12,196,975 10,894,010 12,937,019 Capital Outlay - - - - Operating Expenses Subtotal 10,976,619 12,537,463 11,254,816 13,266,623 TOTAL EXPENDITURES 11,510,882$ 13,153,421$ 12,042,005$ 13,867,943$ Full Time Positions 5.40 6.03 6.53 5.00 Hourly/FTE Positions 0.00 0.93 0.73 0.73 E-24 • Achieve and maintain a lease rate that fully utilizes Section 8 Housing Choice Voucher program funding allocation • Enable unemployed, under-employed or under-educated low-income families to achieve economic independence from welfare • Administer the CDBG program representing federal funds provided to the city • Prepare and implement a five-year consolidated plan and Annual Action Plan for submittal to U.S. Department of Housing and Urban Development, or HUD • Provide staff support to the CDBG Funding Advisory Committee and the City Council in the selection process for activities to be included in the CDBG Program • Ensure that documentation is maintained to meet compliance with HUD established guidelines for continued CDBG funding • Monitor activities of grant sub-recipients to ensure proper use of funds • Prepare the Consolidated Annual Performance and Evaluation Report for public review and comment and final submission to HUD • Partner with a non-profit legal advisor to provide fair housing and tenant-landlord dispute counseling and education program RECENT ACCOMPLISHMENTS • Provided monthly rental assistance to 596 very low and extremely low-income households, an increase of 4.6% from the previous year • Funded four public service organizations and one fair housing provider, resulting in supportive services being provided to approximately 1,155 Carlsbad residents in low-income and special needs populations and assistance in the prevention of homelessness and reduction of the homeless population • Amended the fiscal year 2022-23 Annual Action Plan for the CDBG Program to allocate $996,112 in additional funds received through Program Income and unspent funds from prior year projects GOALS • Continue to operate the Section 8 Housing Choice Voucher program effectively and seek additional funding to serve more clients as opportunities arise • Complete processing of rental assistance vouchers for 25 non-elderly, disabled participants • Complete and submit the fiscal year 2023-24 Consolidated Annual Plan Evaluation Report and fiscal year 2024-25 Annual Action Plan • Update CDBG policies and procedures to allow funding allocations that best support the implementation of the homelessness action plan • Begin planning for next CDBG Consolidated Plan cycle for fiscal year 2025-30 Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Clients receiving Rental Assistance 568 575 600 N/A Quality of Life & Safety Dollar value of grants awarded to community organizations $501,113 $545,490 $518,215 N/A Quality of Life & Safety E-25 COMMUNITY SERVICES | HOUSING & HOMELESS SERVICES: SUCCESSOR AGENCY Account: 801, 811 Fund: Trust Fund – Successor Agency ABOUT The successor agency is responsible for preparing a recognized obligation payments schedule as detailed by the State of California’s Department of Finance, listing the enforceable obligations of the former redevelopment agency and their source of payment. This payment schedule is subject to approval by the countywide oversight board. SERVICES • Administer the successor agency, which is responsible for preparing a recognized obligation payment schedule as detailed by the State of California’s Department of Finance, listing the enforceable obligations of the former redevelopment agency and their source of payment • Participate in activities associated with the dissolution of the redevelopment agency • Ensure payment of all debt obligations as approved by the oversight board RECENT ACCOMPLISHMENTS • Processed Recognized Obligations Payment Schedule for fiscal year 2023-24 for approval by the countywide oversight board GOALS • Continue to take actions to dissolve the former redevelopment agency in a timely manner 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages -$ -$ -$ -$ Retirement Benefits - - - - Health Insurance - - - - Other Personnel Expenses - - - - Personnel Services Subtotal - - - - Operating Expenses Professional & Contract Services - 198 30,000 10,000 Supplies & Materials - - - - Repair & Maintenance - - - - Interdepartmental Charges 7,284 7,668 - - Other Operating Expenses 1,013,515 1,013,607 1,029,500 - Capital Outlay - - - - Operating Expenses Subtotal 1,020,799 1,021,473 1,059,500 10,000 TOTAL EXPENDITURES 1,020,799$ 1,021,473$ 1,059,500$ 10,000$ Full Time Positions 0.00 0.00 0.00 0.00 Hourly/FTE Positions 0.00 0.00 0.00 0.00 E-26 COMMUNITY SERVICES | LIBRARY & CULTURAL ARTS: SUMMARY Beginning in 2024-25, the department reorganized its library services to a location-based model. Summary level figures in the following budget tables reflect this new structure. LIBRARY & CULTURAL ARTS • Administration, Digital Initiatives & Special Projects • Public Services (includes three locations at Dove Library, Cole Library and Library Learning Center) o Circulation Services o Adult & Teen Services o Children’s Services o Exploration HUB o Genealogy & Carlsbad History Services o Literacy & Bilingual Services • Specialty Services o Collections & Technical Services o Strategic Partnerships & Outreach • Cultural Arts 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 5,643,950$ 5,908,344$ 6,563,356$ 6,638,060$ Retirement Benefits 1,275,142 1,076,700 1,101,347 1,225,552 Health Insurance 567,654 556,270 766,775 751,797 Other Personnel Expenses 211,284 205,113 244,754 256,649 Personnel Services Subtotal 7,698,030 7,746,427 8,676,232 8,872,058 Operating Expenses Professional & Contract Services 561,814 672,025 720,722 705,744 Supplies & Materials 1,218,483 1,266,481 1,248,471 1,272,759 Repair & Maintenance 3,415 (9,128) 8,800 8,800 Interdepartmental Charges 3,191,426 3,357,538 3,127,532 3,779,323 Other Operating Expenses 518,442 558,950 473,063 473,063 Capital Outlay 8,307 - - - Operating Expenses Subtotal 5,501,887 5,845,866 5,578,588 6,239,689 TOTAL EXPENDITURES 13,199,917$ 13,592,293$ 14,254,820$ 15,111,747$ General Fund 13,024,082$ 13,290,637$ 13,637,285$ 14,522,844$ Special Revenue Fund 175,835$ 301,656$ 617,535$ 588,903$ TOTAL FUNDING 13,199,917$ 13,592,293$ 14,254,820$ 15,111,747$ Full Time Positions 52.50 51.00 53.00 51.00 Hourly/FTE Positions 63.66 61.95 53.42 53.77 E-27 COMMUNITY SERVICES | LIBRARY & CULTURAL ARTS: ADMINISTRATION, DIGITAL INITIATIVES & SPECIAL PROJECTS Account: 0014010 Fund: General 1454010 Special Revenue – Gifts & Bequests 1454011 Special Revenue – Friends of the Library 1454017 Special Revenue – Krell Donation ABOUT Library & Cultural Arts Administration provides management and leadership for the delivery of library and cultural arts programs and services; plans for the efficient use of resources and facilities; coordinates relations with local, state and federal government agencies; and provides liaison services, resource assistance and technical guidance to Library Board of Trustees, Arts Commission, the Friends of the Carlsbad Library, the Carlsbad Library & Arts Foundation, the Carlsbad Friends of the Arts and the Serra Cooperative Library System. SERVICES • Conduct strategic planning, set programs and services and monitor and respond to industry trends and best practices • Utilize data to develop meaningful performance metrics that show impact in the community and adjust services based on community needs 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 1,151,422$ 1,071,715$ 1,162,425$ 1,130,880$ Retirement Benefits 333,065 269,721 249,848 267,270 Health Insurance 129,932 113,292 147,366 118,118 Other Personnel Expenses 40,134 35,228 40,086 39,902 Personnel Services Subtotal 1,654,553 1,489,956 1,599,725 1,556,170 Operating Expenses Professional & Contract Services 84,297 68,686 29,000 16,500 Supplies & Materials 166,360 156,353 226,410 267,033 Repair & Maintenance 1,235 131 4,155 4,455 Interdepartmental Charges 763,200 1,007,029 807,042 567,579 Other Operating Expenses 514,221 552,827 473,063 473,063 Capital Outlay 8,307 - - - Operating Expenses Subtotal 1,537,620 1,785,026 1,539,670 1,328,630 TOTAL EXPENDITURES 3,192,173$ 3,274,982$ 3,139,395$ 2,884,800$ General Fund 3,121,218 3,160,996 2,971,495 2,683,400 Special Revenue Fund 70,955 113,986 167,900 201,400 TOTAL FUNDING 3,192,173$ 3,274,982$ 3,139,395$ 2,884,800$ Full Time Positions 12.00 10.00 10.00 9.00 Hourly/FTE Positions 3.82 3.37 2.92 2.92 E-28 • Manage personnel and volunteer recruitment activities, develop and maintain policies and procedures and provide centralized training services for all staff and volunteers • Develop, administer and monitor budgets, contracts, grants, purchasing and accounting processes • Plan and develop special projects and technology solutions to effectively deliver services • Work with the Library Board of Trustees and the Arts Commission to ensure the department is responsive to community needs as represented by trustees and commissioners • Partner with support organizations including the Carlsbad Library & Arts Foundation, the Friends of the Carlsbad Library and Carlsbad Friends of the Arts to ensure endowments, donations and fundraising on behalf of the organization are used appropriately RECENT ACCOMPLISHMENTS • Completed a year-long evaluation of library operations, and began implementation of a new structure that addresses staff feedback, changing community needs and best practices • Held a unifying in-person staff development day for the first time since 2019, with high staff attendance and ratings, focused on “Cultivating Connectedness” • Eliminated fees for printing and copying to address access and equity issues, reduce staff time spent processing deposits and servicing coin machines and reduce contracted vendor expenses • Built a central data location to improve access to performance metrics • Formalized the relationship with the Carlsbad Friends of the Arts with an executed Memorandum of Understanding GOALS • Continue to address equity in staff and community services and resources and improve overall accessibility and inclusion • Review, update and secure Library Board approval of department policies and procedures • Improve on data collection and collation for data informed decision making • Shepherd a $600,000 RFID hardware upgrade through the city’s technology project process • Install a new people-counting and space usage measuring system, alongside a citywide effort • Complete replacement of printers and copiers for patron use • Formalize relationships with Friends of the Library and Carlsbad Library & Arts Foundation via Memorandums of Understanding • Support City Council’s Community Character goal and strategic objective to enhance wellness, socialization, inclusion and active living with library and cultural arts programs, demonstrated by the performance measures below Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Number of contracts executed 122 98 104 N/A Organizational Excellence & Fiscal Health Patron computer sessions: mobile and in- house 147,635 169,673 172,000 N/A Community Character Library visits 423,335 444,500 466,700 5% annual increase Community Character E-29 COMMUNITY SERVICES | LIBRARY & CULTURAL ARTS: PUBLIC SERVICES Account: 001402X Fund: General – Dove 001403X General – Cole 001405X General – Learning Center & Grants 1454016 Special Revenue – Sutton ABOUT Following a year-long evaluation of library operations, a new structure will be implemented starting in July 2024 that addresses staff feedback, changing community needs and best practices. Public Services include all the library disciplines that program for and serve library patrons, including circulation, adult and teen, and children’s services. At Dove Library, this also includes the Exploration HUB. At Cole Library, this includes Genealogy and Carlsbad History. At the Library Learning Center, it includes adult and family literacy. SERVICES • Assist community members of all ages with information and literacy needs, provide instruction on resource use, perform research for the public, local business and government, provide educational, literacy, informational, cultural and recreational programs and advise readers to find books of interest • Circulation staff manage patron accounts and issuance of library cards, circulate and inventory print, electronic and audiovisual materials, answer collection-related questions, track reserved and overdue items and sort, organize and shelve all library materials 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 3,100,414$ 3,334,084$ 3,759,239$ 3,721,378$ Retirement Benefits 609,997 522,021 555,381 595,696 Health Insurance 267,001 280,775 379,337 341,755 Other Personnel Expenses 122,570 121,125 144,209 148,783 Personnel Services Subtotal 4,099,982 4,258,005 4,838,166 4,807,612 Operating Expenses Professional & Contract Services 6,063 5,074 2,275 3,575 Supplies & Materials 46,725 47,944 30,198 20,475 Repair & Maintenance 1,272 1,279 1,645 1,345 Interdepartmental Charges 1,976,413 1,975,583 1,912,705 2,666,131 Other Operating Expenses 4,221 3,367 - - Capital Outlay - - - - Operating Expenses Subtotal 2,034,694 2,033,247 1,946,823 2,691,526 TOTAL EXPENDITURES 6,134,676$ 6,291,252$ 6,784,989$ 7,499,138$ General Fund 6,134,676 6,291,252 6,784,989 7,487,138 Special Revenue Fund - - - 12,000 TOTAL FUNDING 6,134,676$ 6,291,252$ 6,784,989$ 7,499,138$ Full Time Positions 26.50 27.00 28.00 26.00 Hourly/FTE Positions 47.25 46.78 41.08 40.97 E-30 • The Genealogy & Carlsbad History staff provide reference and instructional assistance to community members researching their ancestry, preserve and make available Carlsbad history materials for public research, and work closely with the North San Diego County Genealogical Society to provide educational genealogy resources and programs • Adult and family literacy services include one-on-one tutoring, English as a second language classes, Career Online High School and programs for adult learners supported by community volunteers and partners and a California State Library grant RECENT ACCOMPLISHMENTS • Launched Canto, a digital asset management system that will make digital resources like historic photographs available to the community, and added a portion of the Carlsbad History collection • Established a centralized staff programming committee to ensure a consistent, diverse range of programming • Conducted children’s services summits to train all staff on best practices for youth services • Reinstated large scale, in-person performances for children and families during the Summer Reading Adventure • Worked with local partners to offer small business workshops • Updated circulation policies and procedures suspended during the COVID-19 pandemic • Completed a technology update in the Exploration HUB, replacing iMacs with laptops, to increase flexibility in the space • Wrote and published low-literacy, high-interest books to meet adult learner needs GOALS • Restore volunteer participation in after school homework assistance at the Learning Center • Continue to add digital resources to the Canto digital asset management system, including historical photographs and prerecorded cultural arts performances • Increase STEAM programming by adding literacy play spaces • Implement the Link+ system that allows library users to borrow books from libraries throughout California Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Library program participation *anticipated closure of Schulman Auditorium 41,810 41,225 35,000* N/A Community Character New library accounts 11,977 13,200 14,500 10% increase annually Community Character SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET In response to City Council feedback requesting staff identify additional ways to contain ongoing operational costs within the organization, staff conducted a review of staffing levels, workload and existing vacancies in an effort to find new opportunities for savings. As part of this effort, Library & Cultural Arts eliminated a vacant lead librarian position primarily responsible for supporting public services at Dove Library. Some of this work will be distributed to other librarian staff, and potential impacts of this position being eliminated include reduced public programs. E-31 COMMUNITY SERVICES | LIBRARY & CULTURAL ARTS: SPECIALTY SERVICES Account: 0014040 Fund: General – Collections & Technical Services 0014041 General – Strategic Partnerships & Outreach 1454014 Special Revenue – Benson 1454015 Special Revenue – Falkenstein ABOUT Specialty Services include all systemwide work that supports the programs and services of public facing divisions. SERVICES • Coordinate the selection of physical and electronic materials and manage collection development and maintenance for all library facilities • Catalog and prepare library materials for public use, evaluate new content formats, devise new cataloging and processing procedures and evaluate usage patterns for materials • Develop partnerships and outreach opportunities to promote community connections and improve services systemwide 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 600,116$ 598,498$ 667,089$ 931,761$ Retirement Benefits 157,581 128,724 133,665 212,516 Health Insurance 77,462 77,338 79,887 161,920 Other Personnel Expenses 20,706 19,133 25,094 35,171 Personnel Services Subtotal 855,865 823,693 905,735 1,341,368 Operating Expenses Professional & Contract Services 30,915 32,477 9,325 13,025 Supplies & Materials 944,593 1,005,016 939,061 942,420 Repair & Maintenance - (10,538) - - Interdepartmental Charges 191,100 174,732 194,436 223,645 Other Operating Expenses - 60 - - Capital Outlay - - - - Operating Expenses Subtotal 1,166,608 1,201,747 1,142,822 1,179,090 TOTAL EXPENDITURES 2,022,473$ 2,025,440$ 2,048,557$ 2,520,458$ General Fund 1,980,481 1,928,435 1,878,907 2,349,502 Special Revenue Fund 41,992 97,005 169,650 170,956 TOTAL FUNDING 2,022,473$ 2,025,440$ 2,048,557$ 2,520,458$ Full Time Positions 7.00 7.00 7.00 9.00 Hourly/FTE Positions 3.29 3.29 3.08 3.19 E-32 RECENT ACCOMPLISHMENTS • Created a new, distinct graphic works collection; graphic works are stories, nonfiction accounts and memoirs in a format that combines text and images • Updated the collection development policy to ensure both currency and continuity of high standards for collection development • Completed an Outreach Road Map which sets the strategic direction, expectations and procedures for department outreach • Established a productive partnership with LiveWell San Diego, which brought free health and wellness programs to library locations GOALS • Improve organization of children’s materials to align with best practices and increase accessibility • Redirect collection budget allocations toward the most popular collection formats • Evaluate and begin to sunset formats that are losing relevancy, such as music CDs Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Number of digital items added to the collection 25,545 26,882 28,163 5% increase annually Community Character Number of physical items added to the collection 28,698 30,133 31,640 N/A Community Character Number of items checked out (physical and digital) 1,094,528 1,150,250 1,207,000 10% increase annually Community Character E-33 COMMUNITY SERVICES | LIBRARY & CULTURAL ARTS: CULTURAL ARTS Account: 001406X Fund: General 1454013 Special Revenue – Gartner Fund 148 Special Revenue – Special Events 175 Special Revenue –Schulman Endowment ABOUT Cultural Arts plans, promotes and carries out visual and performing arts programs, arts education activities, temporary and permanent public art and other cultural offerings to make connections among artists, cultural organizations, community groups, businesses, residents and visitors that sustain and promote a thriving, diverse and creative city, aligned with the Arts & Culture Master Plan. SERVICES • Present visual arts exhibitions and performing arts at the Ruby G. Schulman Auditorium, the William D. Cannon Art Gallery and throughout the city • Create, document and maintain the city’s permanent and temporary public art collection • Administer the Community Arts Grant program with support from the Arts Commission and participation of community arts stakeholders • Offer educational programs for all ages and abilities, including Three-Part Art, Pop Up Art and STEAM, reaching over 10,000 participants annually • Host guest artist residencies, spanning all genres, to focus on expanded, interactive arts experiences 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 791,998$ 904,047$ 974,603$ 854,041$ Retirement Benefits 174,499 156,234 162,453 150,070 Health Insurance 93,259 84,865 160,185 130,004 Other Personnel Expenses 27,874 29,627 35,365 32,793 Personnel Services Subtotal 1,087,630 1,174,773 1,332,606 1,166,908 Operating Expenses Professional & Contract Services 440,539 565,788 680,122 672,644 Supplies & Materials 60,805 57,168 52,802 42,831 Repair & Maintenance 908 - 3,000 3,000 Interdepartmental Charges 260,713 200,194 213,349 321,968 Other Operating Expenses - 2,696 - - Capital Outlay - - - - Operating Expenses Subtotal 762,965 825,846 949,273 1,040,443 TOTAL EXPENDITURES 1,850,595$ 2,000,619$ 2,281,879$ 2,207,351$ General Fund 1,787,707 1,909,954 2,001,894 2,002,804 Special Revenue Fund 62,888 90,665 279,985 204,547 TOTAL FUNDING 1,850,595$ 2,000,619$ 2,281,879$ 2,207,351$ Full Time Positions 7.00 7.00 8.00 7.00 Hourly/FTE Positions 9.30 8.52 6.35 6.70 E-34 • Present year-round performing arts series, including TGIF Concerts in the Parks, Showtime at the Schulman and Front Row Saturdays • Maintain partnerships with the Carlsbad Friends of the Arts and Carlsbad Library & Arts Foundation RECENT ACCOMPLISHMENTS • Hired a new gallery curator to elevate the William D. Cannon art gallery • Presented three exhibits in the Cannon Art Gallery: a collaboration with Barrio Glassworks, the work of two large-scale painters from Carlsbad and Los Angeles, and rock n roll iconic photography from a Rolling Stone Magazine photographer • Continued partnership with Carlsbad Village Association for temporary art installations pairing local artists with businesses • Launched new partnership with The Forum shopping center to develop a temporary art installation • Completed second year of STEAM programming with the Batiquitos Lagoon Foundation, with double the attendance • Hosted guest artist residency that provided a summer musical theatre experience for kids • Selected artist team for public transportation art at the I-5 and Chestnut Avenue underpass GOALS • Reevaluate the remaining initiatives in Arts & Culture Master Plan and seek City Council guidance on next steps • Complete the technology upgrades for the Schulman Auditorium • Following community engagement sessions, select an artist for public transportation art at the Village & Barrio Traffic Circle • Continue outreach to ensure community input is considered for public art projects including Veteran’s Memorial Park, Chestnut Underpass, Barrio Traffic Circle and Robertson Ranch Park • Complete the third year of a three-year STEAM program in partnership with the Batiquitos Lagoon Foundation, and evaluate the future of the program • Host nine TGIF concerts with new security measures in place, in partnership with Carlsbad Police, Fire and Parks & Recreation Departments and Carlsbad Friends of the Arts Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Permanent and temporary public art projects completed 5 5 3 N/A Community Character TGIF Concerts in the Parks attendance *max. capacity for 9 concerts 27,500 33,670 40,500* N/A Community Character SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET In response to City Council feedback requesting staff identify additional ways to contain ongoing operational costs within the organization, staff conducted a review of staffing levels, workload and existing vacancies in an effort to find new opportunities for savings. As part of this effort, Library & Cultural Arts eliminated a vacant new production technician position originally approved as part of the fiscal year 2023-24 budget. Some of this work will be distributed to library staff and program offerings and rentals in the Schulman Auditorium may need to be reduced. E-35 COMMUNITY SERVICES | PARKS & RECREATION: SUMMARY PARKS & RECREATION • Administration • Recreation • Parks & Trail Maintenance • Street Tree Maintenance & Median Maintenance • The Crossings Golf Course 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 6,089,417$ 6,967,763$ 7,718,770$ 7,910,196$ Retirement Benefits 1,352,430 1,187,646 1,264,817 1,416,861 Health Insurance 570,125 648,498 884,968 829,038 Other Personnel Expenses 447,709 421,320 416,708 460,018 Personnel Services Subtotal 8,459,681 9,225,227 10,285,263 10,616,113 Operating Expenses Professional & Contract Services 8,083,942 8,620,435 7,898,331 8,715,455 Supplies & Materials 972,957 1,224,719 1,055,818 1,020,884 Repair & Maintenance 3,690 7,710 1,934 1,934 Interdepartmental Charges 2,001,854 2,002,048 2,381,739 2,938,664 Other Operating Expenses 9,922,915 10,714,479 11,059,523 11,927,211 Capital Outlay 112,526 598,033 1,010,000 814,000 Operating Expenses Subtotal 21,097,884 23,167,424 23,407,345 25,418,148 TOTAL EXPENDITURES 29,557,565$ 32,392,651$ 33,692,608$ 36,034,261$ General Fund 19,251,458$ 20,813,176$ 21,055,565$ 22,759,082$ Enterprise Fund 8,345,328$ 9,162,350$ 10,121,000$ 10,726,000$ Special Revenue Fund 1,960,779$ 2,417,125$ 2,516,043$ 2,549,179$ TOTAL FUNDING 29,557,565$ 32,392,651$ 33,692,608$ 36,034,261$ Full Time Positions 55.00 59.00 59.00 58.00 Hourly/FTE Positions 80.26 71.56 70.32 70.21 E-36 COMMUNITY SERVICES | PARKS & RECREATION: ADMINISTRATION Account: 0014510, 0014511 140 149 Fund: General Special Revenue-Scholarships Special Revenue-Donations ABOUT Parks & Recreation Administration provides department leadership, planning and administrative services to help develop and sustain high-quality parks and recreation programs. SERVICES • Evaluate and monitor business processes to improve operations, efficiency and performance • Develop and monitor operating budget and annual CIP budget • Process and issue citywide special event permits • Enhance city-owned or controlled natural open space and trails system through land acquisition, planning, trails construction, monitoring and maintenance • Oversee management agreement for The Crossings at Carlsbad Municipal Golf Course • Perform parks planning, design, administration and construction monitoring services • Plan and monitor recreation programs with input from the Parks & Recreation Department Master Plan Update, participant surveys and community outreach 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 1,182,066$ 1,234,681$ 1,362,257$ 1,467,275$ Retirement Benefits 345,543 277,355 298,003 353,272 Health Insurance 97,123 99,962 136,778 160,913 Other Personnel Expenses 57,948 46,134 55,203 63,778 Personnel Services Subtotal 1,682,680 1,658,132 1,852,241 2,045,238 Operating Expenses Professional & Contract Services 152,040 207,418 237,997 208,175 Supplies & Materials 35,647 31,081 59,465 58,340 Repair & Maintenance 2,646 6,863 200 200 Interdepartmental Charges 273,804 397,956 302,034 402,024 Other Operating Expenses 50,295 80,379 113,294 116,669 Capital Outlay - - - - Operating Expenses Subtotal 514,432 723,697 712,990 785,408 TOTAL EXPENDITURES 2,197,112$ 2,381,829$ 2,565,231$ 2,830,646$ General Fund 2,158,357$ 2,322,636$ 2,484,031$ 2,749,446$ Special Revenue Fund 38,755 59,193 81,200 81,200 Total Funding 2,197,112$ 2,381,829$ 2,565,231$ 2,830,646$ Full Time Positions 11.30 10.30 10.45 11.45 Hourly/FTE Positions 1.34 0.49 0.98 0.98 E-37 • Administer opportunity grants for low-income residents • Provide support to and liaise with Parks & Recreation Commission, Senior Commission and Beach Preservation Commission • Implement strategic action items in the Parks & Recreation Department Master Plan Update RECENT ACCOMPLISHMENTS • Checked plans and specifications of new private development projects that include trail construction, street trees and rights of way improvements • Completed and received City Council approval of the 2023-2030 Parks & Recreation Department Master Plan Update • Received City Council approval for a Capital Improvement Program Charter to construct four new outdoor pickleball courts at Calavera Hills Community Park and four new outdoor pickleball courts at Stagecoach Community Park • Completed the Community Engagement/Conceptual Design Phase of Robertson Ranch Park • Obtained City Council approval of the plans and specifications to formally bid the construction of the Stagecoach Community Garden • Obtained City Council approval of the plans and specifications to formally bid the construction of Veterans Memorial Park • Renewed agreements San Diego County Health and Human Services for the Senior Center’s congregate, home meal and transportation programs • Renewed Joint Use and Community Recreation Agreement between the Carlsbad Unified School District and the City of Carlsbad • Completed Park-In-Lieu fee study and presented findings to City Council for consideration GOALS • Implement applicable parks, maintenance, and programs, events and facilities strategies identified in the 2023-2030 Parks & Recreation Department Master Plan Update • Pursue CAPRA accreditation to ensure re-accreditation within the next two years, as it’s the sole national standard for evaluating park and recreation agencies, signifying high-quality operation, management, and community service • Complete the scoping and conceptual design phases of the project to construct four new outdoor pickleball courts at Calavera Hills Community Park and four new outdoor pickleball courts at Stagecoach Community Park Complete the scoping and conceptual design phases of the project to construct four new outdoor pickleball courts at Calavera Hills Community Park and four new outdoor pickleball courts at Stagecoach Community Park • Obtain City Council approval of the plans and specifications to formally bid the construction of the Monroe Street Pool Renovation/Replacement project • Obtain City Council approval on the recommended master plan for Robertson Ranch Park and commence the final design phase of the project • Obtain City Council approval to award a contract to construct Veterans Memorial Park and commence providing administrative support in overseeing the construction • Support three commissions in accomplishing the goals and tasks within each commission’s annual work plan • Implement adjustments to athletic field lighting fees, competitive to surrounding cities E-38 COMMUNITY SERVICES | PARKS & RECREATION: RECREATION Account: 0014520-44, 0014546-73 143 Fund: General Special Revenue-Senior Program Donations ABOUT The Parks & Recreation Department offers a wide range of virtual and in-person programming, including youth and adult sports, instructional classes, camps, aquatics, preschool and teen services and special events. The department operates 339 acres of developed community parks and special use areas, featuring multi-use fields, tennis courts, dog parks, skate parks, playgrounds, two historic parks, a senior center, four multigenerational community centers and two aquatic centers. SERVICES • Provide information, enrollment and registration services for parks, programs and facilities • Collect and account for revenue to ensure efficient and cost-effective programming • Plan, conduct and supervise recreation operations and programs at community centers, parks and other city facilities • Process applications and issue park and facility and special event permits • Coordinate and oversee fair and efficient use of athletic facilities for resident nonprofit sports organizations 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 3,300,657$ 3,840,793$ 4,213,335$ 4,299,456$ Retirement Benefits 506,958 468,194 505,714 558,416 Health Insurance 234,414 267,834 380,054 318,197 Other Personnel Expenses 282,861 273,257 254,252 281,878 Personnel Services Subtotal 4,324,890 4,850,078 5,353,355 5,457,947 Operating Expenses Professional & Contract Services 986,954 1,130,165 1,018,937 1,254,185 Supplies & Materials 612,621 652,689 633,709 606,200 Repair & Maintenance 433 842 1,354 1,354 Interdepartmental Charges 1,119,399 1,086,366 1,405,334 1,750,750 Other Operating Expenses 605,327 773,302 513,076 582,049 Capital Outlay 28,974 67,270 - - Operating Expenses Subtotal 3,353,708 3,710,634 3,572,410 4,194,538 TOTAL EXPENDITURES 7,678,598$ 8,560,712$ 8,925,765$ 9,652,485$ General Fund 7,640,802$ 8,521,584$ 8,892,265$ 9,618,985$ Special Revenue Fund 37,796 39,128 33,500 33,500 Total Funding 7,678,598$ 8,560,712$ 8,925,765$ 9,652,485$ Full Time Positions 19.40 24.40 24.30 23.25 Hourly/FTE Positions 74.28 66.44 64.71 64.60 E-39 • Conduct cultural and historic park educational and interpretive programming • Serve as a certification site for aquatics training programs through the American Red Cross • Provide programs that promote health and wellness and essential childhood development • Arrange classes, seminars, transportation and professional services for seniors • Arrange intergenerational programs that increase cooperation and interaction • Provide congregate meals and home meals delivery to seniors at little or no cost • Recruit and manage volunteers supporting the Senior Center, Leo Carrillo Ranch, trails and special events RECENT ACCOMPLISHMENTS • Completed the design and fabrication process of a new interpretive exhibit at Leo Carrillo Ranch Historic Park focusing on Carrillo family life • Completed the Leo Carrillo Ranch Historic Park preservation and maintenance reroofing project • Oversaw 550 aquatic camp participants and 31 lifeguard academy participants in the Spring, which will lead to 18 new lifeguard hires for summer and approximately 1,348 learn-to-swim participants in summer season • Completed procurement and installation of two of three circulation pumps between both aquatic centers as large asset replacement items • Added year-round youth basketball leagues for grades K-12, with record attendance of more than 900 enrolled participants for the winter season alone • Partnered with the Carlsbad Chamber of Commerce to host Older & Bolder Expo at the Senior Center Returned popular senior programs, excursions, courtyard concerts and featured artists • Introduced a new “tween” Shamrock Social special event GOALS • Support the City of Carlsbad Age-Friendly Action Plan • Expand adult 50+ opportunities and collaborations beyond the Senior Center, including the Older & Bolder Expo • Offer programs that promote health and wellness and essential childhood development, including an ongoing intergenerational pickleball social • Augment staff with volunteers to build community and enhance fiscal stewardship • Continue implementation of the department’s master plan actions related to services, programs, events and fees • Develop a professional photography policy and fee schedule for Leo Carrillo Ranch Historic Park Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Hours of volunteer services used 12,355 15,000 15,000 At least 10,000 Community Character Percentage execution of advertised recreation programs 85% 85% 85% 85% Community Character E-40 COMMUNITY SERVICES | PARKS & RECREATION: PARKS & TRAIL MAINTENANCE Account: 00146XX Fund: General ABOUT The Parks & Recreation Department maintains approximately 432 acres of developed or scheduled to be constructed community parks and special use areas, 51 miles of trails, 612 acres of habitat preserves, urban forests and undeveloped lands and landscaping for 58 acres of facilities. SERVICES • Manage turf, irrigation, drainage and landscaping at parks, civic facilities, beach accesses and school athletic fields • Inspect and maintain restroom facilities and picnic areas, tennis, pickleball and basketball courts, and soccer, softball, baseball and multi-purpose fields • Repair park structures, athletic field lighting, play equipment, playground safety surfacing and other park fixtures • Respond to tree service requests and provide storm and emergency assistance as necessary • Refine, support and administer tree maintenance block pruning program • Inspect and prune all city trees on a 4 to 4.5-year cycle and a 2 to 2.25-year supplemental cycle for high-maintenance trees in accordance with Community Forest Management Plan • Maintain existing citywide trails and coordinate development of new trails • Manage the trails volunteers’ program • Oversee maintenance and monitoring of preserves, urban forests and undeveloped lands 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 1,319,697$ 1,532,169$ 1,660,400$ 1,647,506$ Retirement Benefits 393,130 359,087 358,885 388,992 Health Insurance 206,498 248,339 303,804 288,015 Other Personnel Expenses 84,245 84,038 83,384 88,141 Personnel Services Subtotal 2,003,570 2,223,633 2,406,473 2,412,654 Operating Expenses Professional & Contract Services 5,334,510 5,554,106 5,024,647 5,599,045 Supplies & Materials 313,206 396,914 317,422 317,422 Repair & Maintenance 607 5 380 380 Interdepartmental Charges 533,581 504,058 663,194 768,657 Other Operating Expenses 1,257,498 1,290,240 1,267,153 1,292,493 Capital Outlay 9,327 - - - Operating Expenses Subtotal 7,448,729 7,745,323 7,272,796 7,977,997 TOTAL EXPENDITURES 9,452,299$ 9,968,956$ 9,679,269$ 10,390,651$ Full Time Positions 19.45 20.40 19.40 18.45 Hourly/FTE Positions 3.10 3.85 3.10 3.10 E-41 • Coordinate coastal activities with the California Department of Parks & Recreation, California Coastal Commission and lagoon foundations RECENT ACCOMPLISHMENTS • Applied clear coat on playground surfacing at select parks to enhance UV protection • Refined, supported and administered tree maintenance block pruning program • Inspected and pruned city parks, facilities and trails trees on a 4-4.5-year cycle and a 2-to- 2.25-year supplemental cycle for high maintenance trees • Planted parks and trails trees within vacancies created by prior removals and planted new parks and trails trees in accordance with the Community Forest Management Plan • Performed sports lighting maintenance and enhancements at several community parks • Repaired segments of Lake Calavera Trails with equipment and erosion control measures • Participated in review, selection and implementation of a new janitorial services agreement for parks and beach restrooms • Completed natural turf replacement and establishment at the large dog area and the small dog area at Poinsettia Community Park • Executed two North Beach clean-up events with the Beach Preservation Commission GOALS • Apply clear coat on playground surfacing at select parks to enhance UV protection • Inspect and prune city parks, facilities and trails trees on a 4 to 4.5-year cycle and a 2 to 2.25- year supplemental cycle for high maintenance trees • Add 500 total trees to the city’s inventory, including trees within parks, facilities and trails in accordance with City Council-adopted Community Forest Management Plan • Plant parks and trails trees within vacancies created by prior removals in accordance with the Community Forest Management Plan • Perform sports lighting maintenance and enhancements at several community parks • Execute two North Beach clean-up events with the Beach Preservation Commission • Decrease operational defects in irrigations systems Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Percentage of Green matter generated at city parks and city facilities reused 95% 93% 90% At least 95% Sustainability & the Natural Environment Percentage of increase in recycling receptacles at parks and trials 9% 10% 10% 10% annual increase Sustainability & the Natural Environment SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET In response to City Council feedback requesting staff identify additional ways to contain ongoing operational costs within the organization, staff conducted a review of staffing levels, workload and existing vacancies in an effort to find new opportunities for savings. As part of this effort, Parks & Recreation eliminated one vacant parks maintenance worker position, responsible for general skilled trade work within parks, beach accesses and trails. The duties of the position will be performed by a combination of other park maintenance workers and contracts for outside services. E-42 COMMUNITY SERVICES | PARKS & RECREATION: STREET TREE & MEDIAN MAINTENANCE Account: 160 161 Fund: Special Revenue Special Revenue ABOUT The Street Tree Maintenance Assessment District provides maintenance to all city-accepted street trees within the public right-of-way, including specialized maintenance for street trees in the Downtown Carlsbad Village area. The Median Maintenance Assessment District provides landscape and irrigation maintenance for approximately 68 acres of median planters and nine acres of developed parkways and streetscapes, including the Downtown Carlsbad Village area. SERVICES • Inspect and prune all city trees on a 4 to 4.5-year cycle and a 2 to 2.25-year supplemental cycle for high maintenance trees • Respond to tree service requests and provide storm/emergency assistance as necessary • Refine, support, administer and inspect the tree maintenance block pruning program • Plant street trees and median trees within vacancies created by prior removals in accordance with the Community Forest Management Plan • Perform plan checks, conduct inspections and assume maintenance responsibility for street trees of development projects or ensure a street tree maintenance agreement is executed and recorded by the developer 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 286,997$ 360,120$ 482,778$ 495,959$ Retirement Benefits 106,799 83,010 102,215 116,181 Health Insurance 32,090 32,363 64,332 61,913 Other Personnel Expenses 22,655 17,891 23,869 26,221 Personnel Services Subtotal 448,541 493,384 673,194 700,274 Operating Expenses Professional & Contract Services 1,033,880 1,377,637 1,299,750 1,306,050 Supplies & Materials 11,483 144,035 45,222 38,922 Repair & Maintenance 4 - - - Interdepartmental Charges 75,070 13,668 11,177 17,233 Other Operating Expenses 315,250 290,080 372,000 372,000 Capital Outlay - - - - Operating Expenses Subtotal 1,435,687 1,825,420 1,728,149 1,734,205 TOTAL EXPENDITURES 1,884,228$ 2,318,804$ 2,401,343$ 2,434,479$ Full Time Positions 4.85 3.90 4.85 4.85 Hourly/FTE Positions 1.53 0.78 1.53 1.53 E-43 • Administer and oversee landscape and irrigation maintenance for all city median planters and developed parkways and streetscapes, including litter control, weed abatement, pruning, shrub and tree refurbishment and irrigation repairs • Perform plan checks, conduct inspections and assume maintenance responsibility for medians and parkways constructed from city capital improvement projects and private development, or ensure a median and parkway maintenance agreement is executed and recorded by the developer RECENT ACCOMPLISHMENTS • Responded to tree service requests and provided storm/emergency assistance as necessary • Refined, supported, and administered tree maintenance block pruning program • Inspected and pruned city street trees and median trees on a 4 to 4.5-year cycle and a 2 to 2.25-year supplemental cycle for high maintenance trees • Plan checked, inspected and assumed maintenance responsibility of street trees of development projects or ensured a street tree maintenance agreement was executed and recorded by developer • Administered and oversaw landscape and irrigation maintenance for all city median planters and developed parkways and streetscapes GOALS • Respond to tree service requests and provide storm and emergency assistance as necessary • Refine, support, administer and inspect tree maintenance block pruning program • Inspect and prune streets and medians trees on a 4 to 4.5-year cycle and a 2 to 2.25-year supplemental cycle for high maintenance trees • Add 500 total trees to the city’s inventory, including those within street rights-of-way and medians, in accordance with City Council-adopted Community Forest Management Plan • Administer and oversee landscape and irrigation maintenance for all city median planters and developed parkways Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Number of street trees and median trees inspected for pruning 5,060 5,587 5,000 At least 5,000 Sustainability & the Natural Environment Percentage of increase in recycling receptacles within Downtown Village and Northern Beach Streetscapes 12% 10% 10% 10% annual increase Sustainability & the Natural Environment E-44 COMMUNITY SERVICES | PARKS & RECREATION: THE CROSSINGS AT CARLSBAD MUNICIPAL GOLF COURSE Account: 572 Fund: Enterprise ABOUT The Crossings at Carlsbad Municipal Golf Course is an 18-hole municipal golf course and event facility. Amenities for public use include a 6,835-yard championship golf course, a clubhouse complete with a golf shop, players’ lounge, sunset patio, banquet facilities, fireplace in dining room, full-service kitchen, outdoor deck with ocean views and three miles of hiking trails that connect to Veterans Memorial Park. JC Management, Inc. manages this facility via an agreement with the Carlsbad Public Financing Authority. SERVICES • Administer management and operations agreement with JC Management, Inc. • Maintain and renovate golf and non-golf turf, landscaping, drainage and irrigation systems • Maintain and repair clubhouse, snack bar, restrooms and picnic areas available for patrons • Oversee food and beverage services at the players’ lounge, sunset patio, Canyons Restaurant beverage carts and snack bar • Manage sales and marketing for golf and non-golf activities, special events, banquets, dining, weddings and other gatherings • Train and oversee player assistants, greeters and starters servicing the course and clubhouse 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages $0 $0 $0 $0 Retirement Benefits 0 0 0 0 Health Insurance 0 0 0 0 Other Personnel Expenses 0 0 0 0 Personnel Services Subtotal 0 0 0 0 Operating Expenses Professional & Contract Services 576,558$ 351,109$ 317,000$ 348,000$ Supplies & Materials - - - - Repair & Maintenance - - - - Interdepartmental Charges - - - - Other Operating Expenses 7,694,545 8,280,478 8,794,000 9,564,000 Capital Outlay 74,225 530,763 1,010,000 850,000 Operating Expenses Subtotal 8,345,328 9,162,350 10,121,000 10,762,000 TOTAL EXPENDITURES 8,345,328$ 9,162,350$ 10,121,000$ 10,762,000$ Full Time Positions 0.00 0.00 0.00 0.00 Hourly/FTE Positions 0.00 0.00 0.00 0.00 E-45 RECENT ACCOMPLISHMENTS • Executed a Capital Improvement Plan with projects that have an anticipated return on investment or were needed for maintenance effectiveness or safety concerns • Improved guest experience and facility appearance by replacing original patio furniture on the Canyon’s Restaurant and Sunset Patios • Improved driving range furniture and fixtures to include new turf tee line, bag racks and automated ball machine leading to increased driving range usage and revenue • Installed new air wall in fireside room to improve functionality and elevate guest experience • Upgraded multiple pieces of kitchen equipment to improve restaurant efficiency, increase employee enjoyment and contribute to enticing menu items • Ordered and replaced designated maintenance vehicles, carts and riding equipment • Designed and installed a permanent structure at the starter area to improve overall employee/guest experience and property aesthetics • Installed shade structures at the driving range and beverage stations on the golf course to improve overall employee/guest experience. • Improved and replaced sections of on course fencing to enhance safety • Renovated/replenished planters around the clubhouse and other areas of the golf course • Completed clubhouse front and courtyard landscaping to enhance overall facility appearance and improve overall environmental footprint GOALS • Execute a Capital Improvement Plan with projects that have an anticipated return on investment or are needed for maintenance efficiency or safety concerns • Continue to ensure the pace of play is under five hours per round of golf, via staff educating and expediting patrons, and meet pace of play goal on at least 90% of rounds played • Further develop plans for a more interactive use of the driving range to elevate the experience of patrons including an extension of the existing grass tee area and potential putting course • Add exterior audio-visual components to tie the exterior of the clubhouse in with the interior enhancing the guest experience upon arrival • Replace damaged golf cart paths and fencing in specific areas around the golf course and facility • Elevate the landscaping on the West side of #18 green to leave an improved last impression of the golf course experience along with aesthetically pleasing from the clubhouse • Paint exterior/interior of clubhouse, snack bar, course restrooms and maintenance facilities • Renovate the course restrooms and snack bar to improve guest experience • Enhance wedding and banquet opportunities with the design and construction of upgrades to the westside patio • Complete the install of East range netting to protect assets located in the area from balls • Ensure the pace of play is under five hours per round of golf, via staff educating and expediting patrons, and meet pace of play goal on at least 90% of rounds played • Increase number of banquets and receptions by at least 2% Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Percentage of golf rounds that met pacing goal 92% 92% 92% At least 90% Community Character Percentage increase in banquets and receptions hosted annually 5% 3% 3% 2% annual increase Community Character E-46 F-1 ADMINISTRATIVE SERVICES Administrative Services is a transparent, innovative and efficient support services branch that is accountable for the assets entrusted to it. The branch, comprised of finance, human resources, risk management and workers’ compensation, economic development, information technology and internal audit provides related services to city staff and the public as well as promotes a strong local economy. Our employees work together to add value to organizational processes, provide timely and reliable service to our community and business partners and find creative solutions to problems while protecting our assets. Key roles also include attracting and retaining a talented and engaged city workforce and ensuring the economic vitality of the city. Laura Rocha Deputy City Manager, Administrative Services 442-339-2430 laura.rocha@carlsbadca.gov F-2 F-3 ADMINISTRATIVE SERVICES | ADMINISTRATION Account: 0011110 Fund: General ABOUT Administrative Services Administration provides financial, analytical, budget, strategic, and administrative support to the branch and organization, aiming to enhance operational efficiency and promote evidence-based, well-managed government. SERVICES • Provide branch leadership and strategic support, long-range financial management and budget oversight, internal audit, contract administration, records management, economic development and support to the city’s business community • Enhance transparency, accountability and integrity in operational areas using innovation and technology to streamline procedures and processes • Support departments on process improvement and operational efficiency to further the city’s pursuit of being an evidence-based well managed government • Identify key performance indicators with departments to gauge progress on the City Council's strategic plan and make better data-driven decisions 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 450,490$ 486,228$ 503,810$ 496,494$ Retirement Benefits 118,051 113,546 113,580 128,044 Health Insurance 44,414 42,208 47,717 66,830 Other Personnel Expenses 12,215 11,863 14,256 14,206 Personnel Services Subtotal 625,170 653,845 679,363 705,574 Operating Expenses Professional & Contract Services 21,450 15,042 30,000 38,160 Supplies & Materials 7,448 6,215 6,550 6,550 Repair & Maintenance - - 50 50 Interdepartmental Charges 45,444 45,396 62,794 40,512 Other Operating Expenses 7,044 5,799 5,350 5,350 Capital Outlay - - - - Operating Expenses Subtotal 81,386 72,452 104,744 90,622 TOTAL EXPENDITURES 706,556$ 726,297$ 784,107$ 796,196$ Full Time Positions 3.00 3.00 3.00 3.00 Hourly/FTE Positions 0.50 0.70 0.70 0.00 F-4 RECENT ACCOMPLISHMENTS • Recommended a strategic, balanced budget, that meets City Council-approved reserve level • Continued or completed 31 Economic Development Strategic Plan actions • Developed an economic data dashboard to make indicators more accessible to the public • Established Carlsbad Works to develop a performance management system that highlights good data management and data governance citywide • Won What Works Cities Gold Certification for evidence based, well-managed government • Launched a new open data portal, enhancing information sharing efficiency within the organization and with the public, thereby increasing transparency GOALS • Ensure the city’s short and long-term financial status is healthy and sound • Work with city leadership and City Council to develop plans for addressing any forecast shortfalls in funding for operations and infrastructure • Evaluate opportunities for bond refinancing that will result in savings • Enhance transparency, accountability and integrity in operational areas using innovation and technology to streamline procedures and processes Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Number of value- added internal audit engagements 2 4 4 N/A Organizational Excellence & Fiscal Health SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET In response to City Council feedback requesting staff identify additional ways to contain ongoing operational costs within the organization, staff conducted a review of staffing levels, workload and existing vacancies in an effort to find new opportunities for savings. As part of this effort, Administrative Services Administration eliminated one vacant part-time position. The duties of the position will be distributed among the relative departments within Administrative Services with minimal service level impacts. F-5 ADMINISTRATIVE SERVICES | ECONOMIC DEVELOPMENT Account: 0011035 Fund: General ABOUT Economic development supports business growth, job creation and new investments to improve residents' economic well-being and quality of life, aligning with the City Council's goal of economic vitality. SERVICES • Implement the Economic Development Strategic Plan to achieve Economic Vitality goal • Conduct business expansion, attraction and retention activities • Support Carlsbad’s key industries, small businesses, entrepreneurs and startups • Position Carlsbad as a desirable place to conduct business and grow business operations • Provide economic data and analysis to help inform decision-making 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 656,268$ 1,247,084$ 1,267,824$ 315,108$ Retirement Benefits 178,995 273,545$ 290,160 78,235$ Health Insurance 53,963 116,911$ 149,353 33,545$ Other Personnel Expenses 18,111 29,860$ 37,555 8,535$ Personnel Services Subtotal 907,337 1,667,400 1,744,892 435,423 Operating Expenses Professional & Contract Services 217,259 266,288 384,000 263,000 Supplies & Materials 86,165 73,801 67,760 67,260 Repair & Maintenance - 118,700 105,400 - Interdepartmental Charges 104,280 227,124 261,937 100,683 Other Operating Expenses 19,122 39,351 44,500 25,500 Capital Outlay - - - - Operating Expenses Subtotal 426,826 725,264 863,597 456,443 TOTAL EXPENDITURES 1,334,163$ 2,392,664$ 2,608,489$ 891,866$ Full Time Positions 4.00 9.00 9.00 2.00 Hourly/FTE Positions 1.00 0.00 0.00 0.00 F-6 RECENT ACCOMPLISHMENTS • Continued or completed 31 Economic Development Strategic Plan actions • Hosted the opening day of San Diego Startup Week, attracting 450 startups, entrepreneurs and funders to Carlsbad • Rekindled the cybersecurity awareness program to support small business resiliency • Convened key-industry groups to foster dialogue and synergies • Evolved Life in Action Recruiter to better serve Carlsbad businesses • Transitioned the CTBID and CGLBID to more efficient and appropriate models GOALS • Continue the implementation of the Economic Development Strategic Plan, progressing on at least 39 associated actions in pursuit of Economic Vitality • Enhance support services for city businesses, serving at least 40 BEAR projects • Establish and expand industry advisory groups to address current and anticipated challenges • Streamline recruitment and retention processes for Carlsbad businesses • Develop and implement innovative programs to enhance business growth and resiliency Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Number of companies reached through BEAR activities 40 45 40 N/A Economic Vitality Number of Economic Development Strategic Plan Actions in Progress N/A 31 39 N/A Economic Vitality SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET In response to City Council feedback requesting staff identify additional ways to contain ongoing operational costs within the organization, staff conducted a review of staffing levels, workload and existing vacancies in an effort to find new opportunities for savings. As part of this effort, the department eliminated one full-time position of Chief Innovation Officer. Necessary responsibilities of the position will be absorbed by existing staff. The existing department formerly known as Innovation & Economic Development will be known as the Economic Development Department moving forward. The Senior Program Manager will report directly to the Economic Development Manager within the Economic Development Department. The Data Services Manager, Strategic Plan Analyst and five Geographic Information Services positions will report to the Information Technology Director and reside in the Information Technology Department. F-7 ADMINISTRATIVE SERVICES | FINANCE Account: 0011310 Fund: General ABOUT As a steward of the city’s assets and liabilities, the Finance Department sets and implements a strategic financial management plan and provides information in an effective and timely manner, ensuring the city makes sound financial decisions. SERVICES • Oversee the city budget and long-range financial planning • Monitor the economy closely and continuously update the city’s Ten-Year Financial Forecast to ensure the General Fund remains in balance throughout the year • Present quarterly financial updates to the City Council • Provide general accounting and reporting • Support treasury administration • Manage debt, cashiering, purchasing, utility billing and business licensing • Process payroll and payments • Manage receiving, messenger and mail services 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 2,426,807$ 2,369,590$ 2,502,791$ 2,572,705$ Retirement Benefits 716,699 578,299 557,662 633,443 Health Insurance 365,511 378,037 439,855 413,343 Other Personnel Expenses 77,450 66,569 80,739 89,497 Personnel Services Subtotal 3,586,467 3,392,495 3,581,047 3,708,988 Operating Expenses Professional & Contract Services 1,086,675 984,049 781,180 898,981 Supplies & Materials 216,122 255,377 288,405 276,765 Repair & Maintenance 8,858 12,995 33,850 26,820 Interdepartmental Charges 480,121 704,724 588,661 671,685 Other Operating Expenses 244,851 26,862 50,225 48,725 Capital Outlay - 20,270 - - Operating Expenses Subtotal 2,036,627 2,004,277 1,742,321 1,922,976 TOTAL EXPENDITURES 5,623,094$ 5,396,772$ 5,323,368$ 5,631,964$ Full Time Positions 28.00 26.00 26.00 26.00 Hourly/FTE Positions 3.00 3.00 3.00 3.00 F-8 RECENT ACCOMPLISHMENTS • Completed implementation of new accounting guidance for subscription-based information technology agreements under GASB 96 • Completed the mid-year budget review process • Completed the Master Fee Schedule update • Maintained a balanced operating budget and submitted a balanced budget to City Council for fiscal year 2024-25 • Implemented City Council Policy No. 94, Cost Recovery • Completed an updated cost allocation plan for fiscal year 2024-25 • Assisted with program-specific external audits including Utilities, Public Works and Police • Established a Section 115 Pension Trust and adopted pension investment policy • Implemented Payment Works software to enhance internal controls over vendor payments GOALS • Continue to monitor the economy and its impact to the Ten-Year Forecast to ensure the General Fund remains in balance • Continue to improve procedures to mitigate risk through additional controls in payables process • Complete an updated cost allocation plan • Implement several modules in the city’s financial information system to increase efficiency and enhance internal controls, including budgeting and contract management • Continue supporting program-specific audit requests for funding the city receives • Expand the use of electronic bidding to increase efficiencies in the procurement process • Continue working with IT and Human Resources to develop a strategic plan for future technology system consolidations • Maintain a General Fund Reserve Ratio of 40% of General Fund annual operating expenditures, in compliance with City Council Policy 74 and demonstrating the department’s efforts to achieve the city’s 2023-2027 strategic plan goal of organizational excellence & fiscal health • Maintain a credit rating of AAA, demonstrating the department’s efforts to achieve the city’s 2023-2027 strategic plan goal of organizational excellence & fiscal health Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal General Fund Reserve Ratio 69% 66% 55% At least 40% Organizational Excellence & Fiscal Health Credit Rating AAA AAA AAA AAA Organizational Excellence & Fiscal Health F-9 ADMINISTRATIVE SERVICES | HUMAN RESOURCES: SUMMARY HUMAN RESOURCES • Human Resources • Risk Management • Workers’ Compensation 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 2,022,816$ 2,229,496$ 2,377,979$ 2,238,015$ Retirement Benefits 526,140 499,723 508,803 543,023 Health Insurance 177,829 202,346 214,590 220,937 Other Personnel Expenses (26,365) 78,444 69,943 69,882 Personnel Services Subtotal 2,700,420 3,010,009 3,171,315 3,071,857 Operating Expenses Professional & Contract Services 4,636,313 6,709,662 6,634,670 7,593,000 Supplies & Materials 86,264 68,955 87,605 75,155 Repair & Maintenance - - - - Interdepartmental Charges 355,416 351,180 428,749 673,391 Other Operating Expenses 8,109,713 16,567,062 6,583,780 7,108,400 Capital Outlay - 9,958 - - Operating Expenses Subtotal 13,187,706 23,706,817 13,734,804 15,449,946 TOTAL EXPENDITURES 15,888,126$ 26,716,826$ 16,906,119$ 18,521,803$ General Fund 4,388,148$ 4,513,351$ 5,029,995$ 5,136,218$ Internal Service Fund 11,499,978$ 22,203,475$ 11,876,124$ 13,385,585$ TOTAL FUNDING 15,888,126$ 26,716,826$ 16,906,119$ 18,521,803$ Full Time Positions 17.00 18.00 18.00 17.00 Hourly/FTE Positions 2.20 2.20 2.20 2.20 F-10 ADMINISTRATIVE SERVICES | HUMAN RESOURCES: HUMAN RESOURCES Account: 00115XX Fund: General ABOUT The Human Resources Department provides services for the employees of the city so they can provide the highest level of service to the public. The department serves to support the creation of a high-performance work culture that can carry out the vision for the organization as defined by the City Council and the City Manager. The primary objectives are achieving compliance with federal and state mandates to avoid risk and liability and making process improvements to help the city remain resilient while delivering exceptional service. SERVICES • Monitor and maintain employment-related legal compliance • Manage employee engagement/development programs and support workforce planning • Manage employee relations, investigations and labor relations • Manage recruitment, retention and onboarding, including internship and Department of Defense SkillBridge programs • Ensure employees’ job duties match their job classification and that compensation is equitable and competitive in order to attract and retain top talent • Manage employee benefits, leaves of absence, workplace accommodations and personnel actions to ensure competitive benefits at best value cost and maintain legal compliance • Manage city volunteer program of over 1,000 volunteers donating 25,000 hours of assistance • Foster inclusion, equity and diversity values citywide and within all HR department services 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 1,731,710$ 1,917,654$ 1,886,363$ 1,764,297$ Retirement Benefits 440,024 426,242 400,483 419,233 Health Insurance 133,880 153,199 139,356 154,912 Other Personnel Expenses 49,124 48,801 55,623 54,754 Personnel Services Subtotal 2,354,738 2,545,896 2,481,825 2,393,196 Operating Expenses Professional & Contract Services 1,301,387 1,290,492 1,550,170 1,560,000 Supplies & Materials 82,280 65,760 82,605 70,155 Repair & Maintenance - - - - Interdepartmental Charges 331,512 315,240 379,315 574,167 Other Operating Expenses 318,231 295,963 536,080 538,700 Capital Outlay - - - - Operating Expenses Subtotal 2,033,410 1,967,455 2,548,170 2,743,022 TOTAL EXPENDITURES 4,388,148$ 4,513,351$ 5,029,995$ 5,136,218$ Full Time Positions 14.00 15.00 14.00 13.00 Hourly/FTE Positions 2.20 2.20 2.20 2.20 F-11 RECENT ACCOMPLISHMENTS • Provided over 200 live/on-line self-paced development opportunities to prepare employees for succession planning and future leadership roles and retain the best talent; over 50% of vacant full-time positions were filled by current employees in fiscal year 2023-24 • Met and conferred with organized bargaining associations on multiple policies and laws • Introduced the Let’s Connect program, a performance management tool that provides the opportunity for supervisors and employees to discuss accomplishments, growth and goals • Implemented/updated 20 employment-related policies to comply with new legal mandates • Introduced a blind job applicant screening process that helps focus on skills and experience by excluding an applicants’ personal information during an interview selection process • Used over 600 nationwide websites to achieve a high level of inclusivity in recruitment • Processed over 5,000 job applications; filled over 200 vacant positions in fiscal year 2023-24 • Performed work without use of independent contractors, resulting in cost avoidance: o conducted multiple “difficult to fill” recruitments (~$170,000) o reviewed job classifications to ensure equitable and competitive compensation (~$40,000) o conducted workplace investigations related to employee relations (~$300,000) • Partnered with Fire Department to finalize an internal recruitment process to promote full- time Emergency Medical Technicians to Paramedic Firefighters in order to fill vacancies faster and retain employees who align with Fire Department values and work ethic GOALS • Develop Carlsbad Supervisory Academy to provide customized tools for impactful leadership • Maximize recruitment outreach to attract top talent in a competitive environment • Maintain vacancy rate of less than 7% for police/fire positions to keep the community safe • Collaborate with North Zone fire agencies to conduct joint promotional assessments to save time and money and achieve a consistent efficient testing process across the region • Conduct negotiations for new labor contracts with police and police management associations • Conduct job and compensation studies to ensure equity, competitiveness and retention • Implement the Let’s Connect program and performance management tool citywide • Implement blind job applicant screening process for full-time recruitments • Continue to foster inclusion values city-wide and integrate them into all HR services Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Voluntary turnover rate 8% 5% 6% 10% or less Organizational Excellence & Fiscal Health Legally mandated employee training compliance rate 100% 100% 100% 100% Organizational Excellence & Fiscal Health SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET In response to City Council feedback requesting staff identify additional ways to contain ongoing operational costs within the organization, staff conducted a review of staffing levels, workload and existing vacancies in an effort to find new opportunities for savings. As part of this effort, Human Resources eliminated a senior program manager position for Diversity, Equity and Inclusion. The duties of the position will be distributed among the existing staff within Human Resources with minimal service level impacts. F-12 ADMINISTRATIVE SERVICES | HUMAN RESOURCES: RISK MANAGEMENT Account: 6121930 Fund: Internal Service ABOUT Risk Management administers funding of the self-insured and insured portions of the city’s liability insurance program which helps protect the city’s financial interests. Risk Management works closely with the City Attorney’s Office and outside legal counsel to monitor, control and resolve litigated claims. Risk Management also works to recover monetary losses to city property caused by the negligence of third parties. The risk manager serves as the city’s Americans with Disabilities Act Coordinator and assists with ongoing efforts of the city to comply with Title II of the ADA. Additionally, Risk Management oversees the city’s safety compliance program. SERVICES • Manage all liability claims received by the city • Collaborate and resolve all risk management-related litigation with the City Attorney’s Office • Pursue loss recovery and manage the loss prevention program for employee-related losses • Manage the citywide Safety Program (injury prevention and Cal-OSHA compliance) • Manage subrogation of third-party damage to city assets 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 214,241$ 222,094$ 309,197$ 301,795$ Retirement Benefits 62,233 52,965 69,806 78,864 Health Insurance 31,313 32,350 43,245 39,413 Other Personnel Expenses (46,401) 19,300 9,165 9,576 Personnel Services Subtotal 261,386 326,709 431,413 429,648 Operating Expenses Professional & Contract Services 2,647,783 4,701,339 4,199,500 5,043,000 Supplies & Materials 3,984 3,195 5,000 5,000 Repair & Maintenance - - - - Interdepartmental Charges 23,196 23,952 32,619 70,122 Other Operating Expenses 1,583,382 3,646,415 2,049,700 1,849,700 Capital Outlay - 9,958 - - Operating Expenses Subtotal 4,258,345 8,384,859 6,286,819 6,967,822 TOTAL EXPENDITURES 4,519,731$ 8,711,568$ 6,718,232$ 7,397,470$ Full Time Positions 2.00 2.00 2.50 2.50 Hourly/FTE Positions 0.00 0.00 0.00 0.00 F-13 • Monitor compliance related to insurance requirements for all citywide independent contractors • Evaluate and provide advice regarding insurance policies purchased by the city RECENT ACCOMPLISHMENTS • Conducted safety audits at all city facilities and work sites to maintain safe conditions for the public and employees • Managed over 120 active liability and property claims without a Third Party Administrator, resulting in an estimated $60,000 annual cost avoidance • Reached a successful resolution of a multi-million dollar 40-home groundwater claim • Implemented alternative methods for delivering training to minimize operational disruptions, increase trainer/trainee interaction and training quality and ensure compliance • Implemented industrial hygiene services (audiogram/respirator fit testing) to maximize efficiency and ensure compliance • Coordinated efforts with City Attorney’s Office to develop and implement the new Workplace Violence Prevention Plan • Worked with departments to conduct Safety Surveys to enhance safety compliance • Obtained city property loss recoveries resulting in an average annual cost recovery of $130,000 GOALS • Enhance the safety program to ensure better training of employees and fewer accidents • Enhance safety committee meetings for each department • Conduct Job Hazard Analyses of high-risk job activities in Police and Fire departments • Continue to develop Standard Operating Procedures to maintain compliance with CalOSHA regulations • Expand employee training and decrease use of outside safety vendors Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal New claims that are closed 85% 80% 80% At least 80% Organizational Excellence & Fiscal Health Recovered damages to city property 76% 75% 75% At least 75% Organizational Excellence & Fiscal Health SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET Increased budget for insurance premiums and legal expenses to cover anticipated higher liability and property insurance premiums and legal fees for the coming year. F-14 ADMINISTRATIVE SERVICES | HUMAN RESOURCES: WORKERS’ COMPENSATION Account: 6111520 Fund: Internal Service ABOUT This internal service fund is used to support the work-related injury and illness program. SERVICES • Work with injured employees and physicians to ensure timely medical treatment • Coordinate employees’ return to work, including light duty assignments • Work directly with injured employees to settle outstanding claims without litigation • Provide information and recommendations to department supervisors to prevent work- related injuries RECENT ACCOMPLISHMENTS • Implemented new policies and practices to comply with new legal mandates • Resolved and closed 233 claims in fiscal year 2022-23 and expecting to resolve 223 claims in fiscal year 2023-24; 98% of these did not require litigation 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 76,865$ 89,748$ 182,419$ 171,923$ Retirement Benefits 23,883 20,516 38,514 44,926 Health Insurance 12,636 16,797 31,989 26,612 Other Personnel Expenses (29,088) 10,343 5,155 5,552 Personnel Services Subtotal 84,296 137,404 258,077 249,013 Operating Expenses Professional & Contract Services 687,143 717,831 885,000 990,000 Supplies & Materials - - - - Repair & Maintenance - - - - Interdepartmental Charges 708 11,988 16,815 29,102 Other Operating Expenses 6,208,100 12,624,684 3,998,000 4,720,000 Capital Outlay - - - - Operating Expenses Subtotal 6,895,951 13,354,503 4,899,815 5,739,102 TOTAL EXPENDITURES 6,980,247$ 13,491,907$ 5,157,892$ 5,988,115$ Full Time Positions 1.00 1.00 1.50 1.50 Hourly/FTE Positions 0.00 0.00 0.00 0.00 F-15 • Enhanced the workers’ compensation claims auditing process and trend analysis to identify patterns and implement additional safety measures to prevent claims • Conducted weekly incident reviews to identify trends in work related accidents/injuries and implement measures to reduce employee injury and workers’ compensation claims costs GOALS • Ensure injured employees receive appropriate medical treatment in a timely manner to reach maximum improvement and return to work as soon as possible • Work collaboratively with injured employees to settle claims without costly litigation • Minimize the number of lost days of work due to work-related injuries/illnesses to continue providing outstanding service and minimize overtime cost due to employee absences • Enhance the workers’ compensation strategic plan and use of data analytics to achieve the desired outcomes of this program, including injury and illness prevention • Ensure workers’ compensation data is shared with management regularly to guide the decision-making process and provide feedback that supports the program goals Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Average lost days of work per claim 67 60 60 < 100 Organizational Excellence & Fiscal Health Litigated claims as percent of open claims 2% 2% 2% < 20% Organizational Excellence & Fiscal Health SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET Increased budget to cover anticipated higher costs for excess insurance and medical-related expenses for the coming year. F-16 ADMINISTRATIVE SERVICES | INFORMATION TECHNOLOGY Account: 640, 641 Fund: Internal Service ABOUT The Information Technology Department supports and continuously improves essential technology solutions and infrastructure for enabling day-to-day city operations. IT provides leadership to deliver secure, reliable and cost-effective solutions aligned with City Council priorities and city initiatives. SERVICES • Administer and oversee the department’s use of resources and formation of priorities • Support operations through implementation and support of technology infrastructure • Implement and support enterprise software applications and systems • Provide Data Services including GIS for internal and external data needs • Provide project management services to technology/system implementations and upgrades • Provide business system specialist support to help ensure technology meets business needs • Provide client services through a service desk, PC support and strategic initiatives • Support public safety’s unique technology requirements for the Police and Fire departments • Oversee information technology security policies/practices and threat investigations 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 3,992,390$ 5,055,840$ 5,179,271$ 5,963,096$ Retirement Benefits 1,212,662 1,061,220 1,198,324 1,525,129 Health Insurance 490,649 593,196 693,969 738,267 Other Personnel Expenses (610,349) 308,676 158,923 191,876 Personnel Services Subtotal 5,085,352 7,018,932 7,230,487 8,418,368 Operating Expenses Professional & Contract Services 835,433 1,738,537 1,236,659 1,314,678 Supplies & Materials 214,385 200,287 131,197 137,697 Repair & Maintenance 3,532,515 4,599,418 5,239,978 5,897,569 Interdepartmental Charges 32,724 35,604 73,864 125,499 Other Operating Expenses 1,811,075 1,542,073 1,703,550 1,602,682 Capital Outlay 896,160 1,022,624 1,021,740 1,209,044 Operating Expenses Subtotal 7,322,292 9,138,543 9,406,988 10,287,169 TOTAL EXPENDITURES 12,407,644$ 16,157,475$ 16,637,475$ 18,705,537$ Full Time Positions 37.00 43.00 43.00 48.00 Hourly/FTE Positions 1.00 0.99 0.50 0.50 F-17 RECENT ACCOMPLISHMENTS • Enhanced the staff identity management solution, technology infrastructure, audio visual capabilities, supported data analytics initiatives and numerous cyber security programs • Migrated existing traffic equipment to the highspeed Carlsbad Digital Information Network, decreasing downtime and providing reliable connectivity to traffic signals and sensors • Upgraded enterprise applications including the finance management system, utility billing system, recreation museum collection management solution, treasurer investment portfolio management system and city record management system • Began implementation of Community Development electronic plan reviews, Facility Security Master Plan assessment and pilots for fleet telematics and patron analytics solutions • Implemented a new enterprise digital asset management system, phase one of the construction and project management solution, intranet site, e-vendor validation portal, water main analysis tool and phase one of the enterprise asset management solution • Completed over 9,800 ServiceNow tickets, deployed more than 600 mobile devices and 300 computers and supported numerous building construction and remodel projects GOALS • Begin the core system consolidation to upgrade and implement enterprise applications as identified in the Strategic Digital Transformation Investment Program (SDTIP) • Begin and continue implementation of technology projects as identified in the SDTIP such as Payment Card Industry Compliance, RFID Replacement and Station Alerting Equipment Replacement • Expand software platform for affordable housing management, records management system forms, business process automation and analytics • Replace legacy copper infrastructure along streets with high speed fiberoptics as well as upgrade the network equipment with a modern and secure solution • Continue development of resource tools/action plan for projects and service improvements • Support phase four of the Police & Fire Headquarters remodel • Continue modernization of IT infrastructure for projects supporting improved cybersecurity and data analytics, such as extending the Carlsbad Digital Information Network and development of the cybersecurity program Performance Measure CY 2022 Actual CY 2023 Actual Benchmark Related Strategic Plan Goal Percentage of ticket incidents considered critical 1.08% 0.23% < 2.5% of industry standard Organizational Excellence & Fiscal Health SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET In response to City Council feedback requesting staff identify additional ways to contain ongoing operational costs within the organization, staff conducted a review of staffing levels, workload and existing vacancies in an effort to find new opportunities for savings. As part of this effort, the department eliminated a vacant full-time Business Systems Specialist position. The duties of the position will continue to be absorbed by existing Information Technology staff; low priority projects may be delayed. The department absorbed the Data Services Manager, Strategic Plan Analyst and five Geographic Information Services positions and associated budget that previously resided in the former Innovation & Economic Development Department. F-18 ADMINISTRATIVE SERVICES | MISCELLANEOUS NON-DEPARTMENTAL Account: 00190XX 128XXXX Fund: General Special Revenue - Opioid Settlement Fund ABOUT The miscellaneous non-departmental budget accounts for all General Fund transfers to other funds, City Council contingencies and other miscellaneous General Fund expenses, such as outside legal counsel, personnel vacancy savings, citywide final vacation pay, and citywide dues and subscriptions. The Carlsbad Strategic Plan includes a strategic objective to work with the San Diego Association of Governments and the North County Transit District to prioritize, determine costs, and work with state and federal representatives to seek funding for preliminary design and technical studies for lowering the railroad tracks in the Village. The fiscal year 2023-24 budget appropriated $5.22 million from the General Fund Reserve and directed staff to request that the San Diego Association of Governments, or SANDAG, submit a fiscal year 2023 Railroad Crossing Elimination Grant Program application for the project as the lead agency. On June 25, 2024, the City Council adopted a resolution authorizing the City Manager to execute a memorandum of understanding between the City of Carlsbad, SANDAG and the North County Transit District regarding the pursuit of grant funding for the project. COVID-19 related expenditures are minimal and are associated with the previous COVID-19 Economic Recovery and Revitalization Initiative. Vacancy savings, or anticipated personnel savings over the course of the fiscal year, were first added to the budget in fiscal year 2022-23. 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 BudgetMiscellaneous Non-Departmental Expenditures Community Contributions & Railroad Trenching -$ -$ 5,220,000$ -$ COVID-19 Related 177,677 40,842 - - Dues and Subscriptions 75,069 77,746 80,000 90,000 Legal Services 519,683 540,090 750,000 750,000 Opioid Settlement Funds - - 21,466 103,059 Other Miscellaneous Expenditures 50,787 52,277 100,000 100,000 Personnel Related 155,595 122,499 1,637,000 1,900,000 Professional Services 33,980 44,148 39,700 39,000 Property Tax and Other Administration 725,588 764,180 750,000 800,000 Vacancy Savings - - (2,000,000) (2,000,000) Miscellaneous Non-Departmental Subtotal 1,738,379 1,641,782 6,598,166 1,782,059 General Fund Transfers Transfer to General Capital Construction Fund 13,283,056 3,956,000 11,600,000 18,579,226 Transfer to Infrastructure Replacement Fund 283,000 3,956,000 4,200,000 4,779,226 Transfer to Strategic Digital Transformation Investment Program 10,656,000 3,956,000 4,200,000 4,779,226 Transfer to LLD #1 (Medians & Trees)1,390,000 1,400,000 1,570,000 1,500,000 Transfer to Storm Water Program 322,000 332,000 340,000 350,000 Transfer to Fleet Maintenance - 1,400,000 - - Transfer to Fleet Replacement - - - 560,000 Transfer to Risk Management - 1,000,000 - - Transfer to Workers' Compensation Fund - 8,208,252 - 7,000,000 Miscellaneous Transfers Out 993,748 - - - General Fund Transfers Subtotal 26,927,804 24,208,252 21,910,000 37,547,678 City Council Contingencies Contingencies - - 500,000 500,000 TOTAL EXPENDITURES 28,666,183$ 25,850,034$ 29,008,166$ 39,829,737$ F-19 The city first received funds from the Opioid Settlement and Distributor Settlement funds in fiscal year 2022-23 and has since built these distributions in its annual budget. These funds come from the California Opioid Settlements to be utilized for opioid remediation activities. The personnel related expenditures pertain to certain centrally budgeted items in the General Fund, such as those related to CalPERS, final vacation pay to employees when they terminate employment with the city, and accounting adjustments. This budget item has increased in recent years to better account for actual personnel costs. Accounting for $2 million in vacancy savings also allows for budgeted personnel costs to align with actual personnel costs more closely in the General Fund. Prior year actuals for personnel vacancy savings will consistently remain at zero, assuming actual savings reach the budgeted total. In accordance with City Council Policy 91, the city targets adopting an annual budget that includes a transfer from the General Fund to one or more of the city's long-term capital funds. The long-term capital funds include the General Capital Construction Fund, the Infrastructure Replacement Fund and the Technology Investment Capital Fund. In fiscal year 2022-23, the city made equal contributions across each of the three funds. In fiscal years 2023-24 and 2024-25, the city budgeted for and made additional contributions to the General Capital Construction Fund to ensure that future projects have adequate funding. The additional respective transfers of $7.4 million and $13.8 million were funded from estimated General Fund surplus. The City Council authorized one-time transfers to the city’s Fleet Maintenance Fund in fiscal year 2022-23 and the Fleet Replacement Fund in fiscal year 2024-25. The $1.4 million transfer to Fleet Maintenance supported the fund balance amid increasing maintenance costs citywide. The $560,000 transfer to Fleet Replacement supported historical chargebacks related to a Police Department vehicle purchase. The City Council also authorized several one-time transfers to the city’s Risk Management and Workers’ Compensation funds. In fiscal year 2022-23 the City Council approved total transfers of $1 million to the Risk Management Fund and $8.2 million to the Workers’ Compensation Fund. Spending in both funds exceeded estimates due to several factors, including the volume of claims opened and settled, an increase in personnel, and growing costs for legal defense and experts. The fiscal year 2024-25 budget includes another one-time transfer of $7 million in an effort to increase the program’s reserve to achieve a funded status of approximately 85%. This level of funding is consistent with actuarial standards and in accordance with recommendations from the city’s external auditors. City Council contingency budget has been set at $500,000 annually in recent years. Prior year actuals remain at zero, as the City Council distributes budget throughout the year to departments citywide as approved by Council action. The City Council approved contingency spending in fiscal years 2021-22 through 2023-24 of $280,358, $7,776, and $8,000, respectively. The City Council distributed budget for items like community spirit grants, a special events grant, a winning teams grant, supporting the city’s professional services agreement to shelter the pets of individuals experiencing homelessness, paying consultant costs associated with the preparation of alternatives and potential housing sites to study for rezoning, among others. F-20 G-1 POLICY & LEADERSHIP The City of Carlsbad follows a council-manager form of government, where elected City Council members provide direction on the policies and regulations that govern the operations of the city. The Policy & Leadership branch includes the following areas: • Office of the City Council (elected) • Office of the City Treasurer (elected) • Office of the City Manager • Office of the City Attorney • Office of the City Clerk (elected) • Communication & Engagement The City Council appoints the City Manager, City Attorney and members of the city’s boards, commissions and committees. The Office of the City Manager handles administration and oversight of the city organization, including hiring the city workforce, supervising city departments and ensuring the City Council’s policy priorities are met. Scott Chadwick City Manager 442-339-2820 manager@carlsbadca.gov G-2 G-3 POLICY & LEADERSHIP | OFFICE OF THE CITY COUNCIL Account: 0011010 Fund: General ABOUT As the legislative body of the city, the Office of the City Council establishes the policies and regulations under which the city operates. SERVICES The City Council, as a legislative body, approves direction, policies and regulations that govern the operations of the city. The City Council appoints residents to serve on various boards and commissions and may serve as city representatives on regional boards such as SANDAG, North County Transit District and the San Diego County Water Authority. RECENT ACCOMPLISHMENTS •Allocated funding to host nine TGIF free summer concerts in 2024 •Approved zoning changes on 16 properties across Carlsbad to meet state housing requirements •Accepted a $2.3 million state grant that will help address homeless encampments in the downtown Village area •Approved design and construction of eight new outdoor pickleball courts 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 278,071$ 297,953$ 308,869$ 266,179$ Retirement Benefits 73,340 60,017 47,173 36,980 Health Insurance 79,678 92,236 42,729 69,616 Other Personnel Expenses 7,319 6,931 6,539 3,335 Personnel Services Subtotal 438,408 457,137 405,310 376,110 Operating Expenses Professional & Contract Services 201 2,375 25,300 25,800 Supplies & Materials 5,450 9,483 24,422 24,422 Repair & Maintenance - - - - Interdepartmental Charges 79,800 88,464 102,968 119,137 Other Operating Expenses 10,285 34,173 49,078 53,578 Capital Outlay - - - - Operating Expenses Subtotal 95,736 134,495 201,768 222,937 TOTAL EXPENDITURES 534,144$ 591,632$ 607,078$ 599,047$ Full Time Positions 2.00 2.00 2.00 1.00 Hourly/FTE Positions 0.00 0.00 0.00 0.00 G-4 • Adopted a new Parks & Recreation Department Master Plan that will guide parks and recreation priorities through 2030 based on community feedback, industry trends, city demographics and other factors • Adopted City Council Policy 99, City Council Proclamations, Certificates of Recognition and Congratulatory Letters • Adopted City Council Policy 100, City Council Conference, Training and Professional Development Travel Policy GOALS The City Council is focused on advancing the goals identified in the city’s 5-Year Strategic Plan. Work is centered around the following five goal themes: • Economic vitality • Sustainability and the natural environment • Community character • Quality of life and safety • Organizational excellence and fiscal health SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET In response to City Council feedback requesting staff identify additional ways to contain ongoing operational costs within the organization, staff conducted a review of staffing levels, workload and existing vacancies in an effort to find new opportunities for savings. As part of this effort, the Office of the City Council eliminated one vacant senior office specialist position. The duties of the position will be distributed among existing staff within the City Manager’s Office with minimal service level impacts. G-5 POLICY & LEADERSHIP | OFFICE OF THE CITY TREASURER Account: 0010310 Fund: General ABOUT The Office of the City Treasurer provides cash and investment management services which adhere to the city’s Investment Policy and meet the changing investment needs of the city to optimize investment returns, consistent with maintaining safety of principal, ensuring sufficient liquidity and return on investment. SERVICES • Manage reporting and oversight of the city’s cash and investments RECENT ACCOMPLISHMENTS • Maintained a competitive yet prudent investment yield • Increased book value of investment portfolio in fiscal year 2023 by 2.64% over prior year • Increased cash income earned by the investment portfolio in fiscal year 2023 by 25.49% over prior year GOALS • Maintain a stable investment portfolio to ensure the preservation of capital in the overall portfolio • Anticipate and meet the changing investment needs of the city to remain sufficiently liquid to enable the city to meet all operating requirements 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 90,849$ 64,518$ 122,253$ 121,975$ Retirement Benefits 26,286 19,619 26,546 29,238 Health Insurance 25,530 4,172 21,348 9,780 Other Personnel Expenses 2,820 1,951 3,473 3,412 Personnel Services Subtotal 145,485 90,260 173,620 164,405 Operating Expenses Professional & Contract Services 63,348 34,779 70,210 60,700 Supplies & Materials 1,780 972 850 1,032 Repair & Maintenance - - - - Interdepartmental Charges 32,676 21,900 29,569 48,667 Other Operating Expenses - - 4,900 4,718 Capital Outlay - - - - Operating Expenses Subtotal 97,804 57,651 105,529 115,117 TOTAL EXPENDITURES 243,289$ 147,911$ 279,149$ 279,522$ Full Time Positions 1.00 1.00 1.00 1.00 Hourly/FTE Positions 0.00 0.00 0.00 0.00 G-6 • Manage the investment portfolio to realize a yield on investments as a source of additional revenue • Use innovative solutions to fund modern and secure cash handling solutions even in uncertain times • Maintain a maximum modified duration of less than 2.2%, which is a measure of investment risk • Maintain short term investment maturity value (investments maturing within one year) at no less than the equivalent of two-thirds of the current operating budget; this ensures sufficient liquidity to meet the city’s operating needs Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Modified Duration 1.78 1.60 < 2.2 ≤ 2.2% Organizational Excellence & Fiscal Health Short term investment maturity value as a percentage of the current operating budget 92.1% 85.0% > 66.7% At least 2/3 or 66.6% of operating budget Organizational Excellence & Fiscal Health Average Yield of investment portfolio 1.86% 2.25% 2.60% N/A Organizational Excellence & Fiscal Health G-7 POLICY & LEADERSHIP | OFFICE OF THE CITY MANAGER Account: 0011010 Fund: General ABOUT The Office of the City Manager is dedicated to continuous improvement and organizational excellence that fosters the well-being of a high performing organization that delivers impactful results to further the public good. SERVICES The City Manager’s Office provides City Council support, administrative leadership of city operations, policy development management, monitors and manages legislative affairs and provides general management of public communication and engagement. RECENT ACCOMPLISHMENTS • Issued three Proclamations of Local Emergency in response to the impacts of storm-related damage to property within the City of Carlsbad • Terminated the Safer Streets Emergency on Sept. 23, 2023; however, efforts to continue improving safety through the Safer Streets Together Plan are ongoing • Provided an update to City Council on the status of the goals and objectives in the City Council 5-Year Strategic Plan 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 1,151,593$ 1,235,450$ 1,230,586$ 1,138,336$ Retirement Benefits 364,616 311,058 313,890 321,172 Health Insurance 135,066 130,716 139,462 120,176 Other Personnel Expenses 32,560 28,905 33,053 31,054 Personnel Services Subtotal 1,683,835 1,706,129 1,716,991 1,610,738 Operating Expenses Professional & Contract Services 180,414 174,424 244,350 249,350 Supplies & Materials 26,669 50,272 46,161 46,161 Repair & Maintenance - - - - Interdepartmental Charges 104,904 94,884 125,966 148,499 Other Operating Expenses 17,300 19,905 51,355 50,935 Capital Outlay - - - - Operating Expenses Subtotal 329,287 339,485 467,832 494,945 TOTAL EXPENDITURES 2,013,122$ 2,045,614$ 2,184,823$ 2,105,683$ Full Time Positions 7.00 7.00 7.00 6.00 Hourly/FTE Positions 0.00 0.00 0.00 0.00 G-8 • Tracked approximately 1,500 separate pieces of legislation and issued statements of support or opposition on 25 pieces of legislation to help ensure Carlsbad’s interests are represented in state and federal actions • Secured $1.3 million in state and federal grants in 2023 • City-sponsored SB 428 (Blakespear) signed into law • Ensured timely follow up of all City Council and constituent services requests • Managed a robust local, state and federal intergovernmental affairs program • Extensive collaboration with neighboring cities and regional organizations to better share best practices for improved cooperation and efficiencies in government GOALS • Ensure the most efficient and effective provision of city services while adapting to changing financial conditions • Enhance community engagement and transparency efforts to foster authentic civic engagement with residents, organizations and businesses • Increase intergovernmental collaboration and legislative advocacy with local, state and federal governments to further the City Council adopted legislative platform and advance priority projects SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET In response to City Council feedback requesting staff identify additional ways to contain ongoing operational costs within the organization, staff conducted a review of staffing levels, workload and existing vacancies in an effort to find new opportunities for savings. As part of this effort, the Office of the City Manager eliminated one vacant management analyst position. The duties of the position will be distributed among existing staff within the Office of the City Manager. G-9 POLICY & LEADERSHIP | OFFICE OF THE CITY ATTORNEY Account: 0011210 Fund: General ABOUT The City Attorney is appointed by the Mayor and City Council. The City Attorney’s Office consists of six attorneys and two legal support staff members. The office primarily practices preventive law, which seeks to minimize the risk of litigation or regulatory violations by anticipating and preventing legal problems. Preventive law focuses on the attorney’s role as adviser and negotiator and emphasizes planning, counseling, collaboration, and problem-solving. The office also prosecutes criminal violations of the Carlsbad Municipal Code. SERVICES • Advise the City Council and city staff on legal matters affecting the city • Attend City Council meetings, Planning Commission meetings and, when necessary, meetings of other boards and commissions • Prepare and review ordinances and resolutions • Negotiate, prepare and approve the form of contracts and legal instruments • Represent the city in court proceedings and before regulatory and legislative agencies • Manage the city’s litigation and provide periodic reports to the City Council • Enforce city laws and regulations 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 1,327,586$ 1,261,492$ 1,400,190$ 1,406,070$ Retirement Benefits 421,473 347,272 352,121 388,449 Health Insurance 123,418 115,291 141,643 121,229 Other Personnel Expenses 37,257 30,699 38,365 39,729 Personnel Services Subtotal 1,909,734 1,754,754 1,932,319 1,955,477 Operating Expenses Professional & Contract Services 2,569 2,609 2,700 2,700 Supplies & Materials 31,707 32,719 23,257 23,257 Repair & Maintenance - - - - Interdepartmental Charges 129,444 106,764 141,008 181,959 Other Operating Expenses 8,429 10,675 16,312 16,312 Capital Outlay - - - - Operating Expenses Subtotal 172,149 152,767 183,277 224,228 TOTAL EXPENDITURES 2,081,883$ 1,907,521$ 2,115,596$ 2,179,705$ Full Time Positions 8.00 8.00 8.00 8.00 Hourly/FTE Positions 0.00 0.00 0.00 0.00 G-10 RECENT ACCOMPLISHMENTS • Advised the City Council and city staff on legal matters, including updates to the Housing Element and Growth Management Plan, local traffic emergency and Surplus Land Act compliance • Managed the city’s defense of civil litigation, including achieving favorable verdicts in two jury trials • Prepared or assisted with additions and revisions to the Carlsbad Municipal Code, including animal control regulations, several chapters on boards and commissions, amendments to the Village and Barrio Master Plan to develop objective design standards, regulations related to non-storefront retail medicinal cannabis businesses and the duties of the Mayor • Assisted with negotiations to reconfigure the SDG&E North Coast Service Center site to free up coastal property for eventual transfer to the city • Worked with the Legislative Subcommittee, the Intergovernmental Affairs Director and the city’s legislative consultant to pass state legislation to expand the workplace violence restraining order law to protect against certain kinds of workplace harassment as well as threats of violence • Worked with Police Department to obtain Gun Violence Restraining Orders as appropriate for domestic violence and mental health incidents • Developed training material for staff on the enforcement of the city’s single-use plastic and food ware bans • Assisted staff in in preparing several service provider and grant agreements to enhance homeless services and programs in the city • Advised the City Clerk’s Office and Police Department on changes to state law regarding the required disclosure of records related to police personnel • Provided trainings to city staff and city board and commission members on the Brown Act, Public Records Act, Political Reform Act, Government Code Section 1090 conflicts of interest and Form 700 requirements for consultants • Reviewed and advised on contracts, public records requests and City Council inquiries • Provided as needed legal support and advice to all city boards, commissions and subcommittees GOALS • Provide quality and timely legal advice to all elected and appointed city officials and all branches to assist in minimizing litigation and regulatory risk and in making sound decisions to carry out the city’s mission, vision, values and strategic plan • Support the City Manager in strategic operations related to ongoing and significant capital projects • Continue efforts to update the Carlsbad Municipal Code, City Council policies and administrative orders and to codify the Carlsbad Municipal Water District ordinances G-11 POLICY AND LEADERSHIP| OFFICE OF THE CITY CLERK Account: 0010210, 0011610 Fund: General ABOUT The Office of the City Clerk serves as a vital link between city government and those it serves, providing access to public records, publishing City Council agendas, preparing minutes and serving as the city’s election official. SERVICES • Prepare City Council agendas • Prepare minutes • Complete legal noticing and publishing • Maintain Fair Political Practices Commission filings • Maintain Carlsbad Municipal Code • Maintain, preserve and provide access to all legislative documents • Administer elections • Notarize documents • Provide proof of life certifications • Ensure public records are archived, preserved and accessible to the public • Respond to Public Records Act Requests 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 610,376$ 645,991$ 675,023$ 631,584$ Retirement Benefits 167,776 144,157 142,285 146,827 Health Insurance 86,549 90,984 86,625 109,647 Other Personnel Expenses 18,665 17,542 21,431 20,780 Personnel Services Subtotal 883,366 898,674 925,364 908,838 Operating Expenses Professional & Contract Services 89,424 27,479 70,500 71,000 Supplies & Materials 42,990 41,459 42,220 42,720 Repair & Maintenance 863 - 4,115 3,115 Interdepartmental Charges 156,372 143,220 182,459 198,134 Other Operating Expenses 123,297 149,799 49,797 49,797 Capital Outlay - 12,483 - - Operating Expenses Subtotal 412,946 374,440 349,091 364,766 TOTAL EXPENDITURES 1,296,312$ 1,273,114$ 1,274,455$ 1,273,604$ Full Time Positions 7.00 7.00 7.00 6.00 Hourly/FTE Positions 1.00 1.00 1.00 1.00 G-12 • Process subpoenas, summons and claims • Develop and implement records management and document management programs • Process recorded documents and bond releases • Provide document research assistance to staff and the public • Provide training and support to various department personnel designated to scan documents into the city’s records repository • Manage and coordinate destruction of records past retention RECENT ACCOMPLISHMENTS • Responded to 662 Public Records Requests • Processed 578 Financial Disclosure Documents • Updated the Carlsbad Municipal Code relating to the qualifications necessary to serve as City Treasurer • Implemented the County’s electronic system for document recordation • Obtained 5-Year Certification from the FPPC for the City’s Electronic Filing System for Statements of Economic Interests • Automated tracking of Ethics Training for all Board and Commission Members GOALS • Obtain a digital posting board to push out all agendas electronically throughout the city for greater accessibility in conformance with the Brown Act • Automate the conforming process as a workflow in Laserfiche • Evaluate feasibility of offering passport application acceptance services • Continue to systematically update the Carlsbad Municipal Code and City Council Policies • Provide greater access to public records on the city website • Maintain and update the Records Retention Schedule and provide city staff with training • Continue to collaborate with various departments on digitizing their documents • Continue to conduct departmental records audits SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET In response to City Council feedback requesting staff identify additional ways to contain ongoing operational costs within the organization, staff conducted a review of staffing levels, workload and existing vacancies in an effort to find new opportunities for savings. As part of this effort, the Office of the City Clerk eliminated one vacant deputy city clerk position. The duties of the position will be distributed within the department with minimal service level impacts. G-13 POLICY & LEADERSHIP | COMMUNICATION & ENGAGEMENT Account: 0011012, 0011016 1381010 Fund: General Special Revenue – Local Cable Infrastructure ABOUT The city’s communication and engagement program fosters open, two-way communication with the community about city issues, programs and services, leading to a more responsive and transparent government. SERVICES • Develop community engagement programs that facilitate early and meaningful public input in city government decision making • Promote awareness of city issues, programs, services and initiatives • Write and edit staff reports and responses to constituent inquiries to ensure information presented is clear, complete and accurate • Produce video recordings and livestream all City Council meetings and meetings of boards, commissions and committees • Manage a dedicated 24/7 government cable TV channel 2021-22 Actual 2022-23 Actual 2023-24 Budget 2024-25 Budget Personnel Services Salaries & Wages 918,417$ 1,011,572$ 1,082,901$ 1,068,842$ Retirement Benefits 219,496 227,913 232,944 261,769 Health Insurance 122,180 135,982 181,807 171,688 Other Personnel Expenses 26,741 25,950 32,984 32,899 Personnel Services Subtotal 1,286,834 1,401,417 1,530,636 1,535,198 Operating Expenses Professional & Contract Services 826,454 1,038,182 454,200 402,612 Supplies & Materials 102,950 121,699 81,620 96,863 Repair & Maintenance 9,541 - - - Interdepartmental Charges 172,368 194,952 208,342 260,980 Other Operating Expenses 18,322 17,662 217,256 221,300 Capital Outlay 24,925 14,038 - - Operating Expenses Subtotal 1,154,560 1,386,533 961,418 981,755 TOTAL EXPENDITURES 2,441,394$ 2,787,950$ 2,492,054$ 2,516,953$ General Fund 2,037,551$ 2,385,710$ 1,953,098$ 2,010,091$ Special Revenue Fund 403,843 402,240 538,956 506,862 Total Funding 2,441,394$ 2,787,950$ 2,492,054$ 2,516,953$ Full Time Positions 7.00 7.00 9.00 9.00 Hourly/FTE Positions 3.50 3.50 1.50 1.00 G-14 RECENT ACCOMPLISHMENTS • Successfully engaged community members on issues including the Robertson Ranch Park planning, Objective Design Standards, Safe Routes to Schools, TGIF concerts, the Climate Action Plan Update and neighborhood traffic calming programs • Communicated to residents about 14 major construction projects, including detour information, construction schedules and project benefits • Developed and distributed 51 editions of the city’s e-newsletter, a weekly 2,000 word recap of City Council actions, upcoming events and other news • Grew email database to 134,557, a net 29% increase over the previous year • Sent 312 targeted emails regarding city issues, programs and events, with an average open rate of 63%, 3% higher than the previous year and 20% higher than the industry average • Produced and distributed 278 news releases and articles about city services and programs • Increased net new YouTube subscribers by 23% and total watch time 38% over last year • Posted 773 updates on Facebook and increased net new followers on Facebook by 3% to a new high of 54,000 • Posted 775 updates on Instagram and increased net new followers by 11% • Produced 73 informational videos, which combined were watched 236,956 times for a total of 6,545 hours • Recognized with 13 local, regional and national awards, recognizing community engagement programs, Safer Streets Together program, employee communication and community service campaigns GOALS The Communication & Engagement Department’s performance measures support all five goals in the City Council’s 5-Year Strategic Plan by promoting awareness of each and opportunities for the community to become engaged in individual initiatives. Performance Measure FY 2023 Actual FY 2024 Estimated FY 2025 Projected Benchmark Related Strategic Plan Goal Engagement opportunities meeting participation goals 3 5 4 ≥ 3/year All City news updates 5 5 4 ≥ 3/year All Communication initiated (all channels) 6 6 5 ≥ 5/year All SIGNIFICANT CHANGES IN THIS YEAR’S BUDGET In response to City Council feedback requesting staff identify additional ways to contain ongoing operational costs within the organization, staff conducted a review of staffing levels, workload and existing vacancies in an effort to find new opportunities for savings. As part of this effort, Engagement & Communication eliminated one part-time position. The duties of the position will be distributed within the department. H-1 STRATEGIC DIGITAL TRANSFORMATION INVESTMENT PROGRAM The Strategic Digital Transformation Investment Program, or SDTIP, is a comprehensive approach to planning for and funding digital transformation efforts throughout the city. Several documents inform this program, including the City Council-approved Connected Carlsbad: An Inclusive City Innovation Roadmap, the Internal Digital Information Network Action Plan and the Information Technology Strategy, which are complemented by a five-year projected roadmap of digital transformation investments. The SDTIP is the strategic plan for technology and digital transformation combined with project descriptions, costs, funding sources and timelines. The purpose of this program is to provide for an annual investment strategy, not a commitment for spending, that outlines a five-year expenditure plan for future digital transformation and technology projects and the corresponding revenues necessary to pay for them. Connected Carlsbad: An Inclusive City Innovation Roadmap In January 2019, city staff presented Connected Carlsbad: An Inclusive City Innovation Roadmap, designed to provide a high-level, organized guide outlining the principles that matter to the city in creating a more connected community. This roadmap and its associated action plan were based on a combination of items, including: • City Council approved projects, • existing city documents, • previous Information Technology assessments and interviews with departments, and • a global scan of other cities and best practices that have emerged from leading smart city thinkers and Carlsbad-specific community engagement. The SDTIP expands on the Connected Carlsbad Roadmap to include a strategy for evaluating and prioritizing projects and a five-year investment roadmap that includes estimated costs and timelines. This new investment program continues to be organized into the five primary goal areas approved by City Council in Connected Carlsbad, listed below. • Pursue Communitywide Digital Transformation focuses on the foundational elements, including connectivity, up-to-date hardware and software, and a robust security strategy while providing an aspirational vision for the future. • Build Capacity for Data-Driven Government focuses on the policies, procedures and staffing necessary for the city to fully capture the value of emerging models of data analytics. • Foster a Vibrant Civic Engagement Culture builds upon the first two goals with a human- centered perspective that an engaged city that uses data and technology in a way that respects people and their privacy will support a vibrant culture where residents, organizations and businesses are invested in their community and its future. • Enhance Accessibility and Transparency recognizes that open government and approaching problem-solving from an accessibility perspective leads to better outcomes for all. • Promote Safety and Sustainability through Connectivity leads to understanding the interconnected nature of our communities that can achieve environmental, mobility and sustainability goals when approached in a cross-departmental and community informed manner. H-2 Once City Council adopts the proposed SDTIP, projects receive an appropriation that authorizes spending in the amount specified for the adopted fiscal year only. Estimated budget information is shown for a five-year period to provide the most comprehensive information about known future projects. Spending authority in future years is not granted until adoption of the annual proposed SDTIP budget associated with each year. INVESTING IN DIGITAL TRANSFORMATION As the city continues to grow and develop, the use of technology has also grown exponentially over the last two decades. The SDTIP outlines the financial resources needed to ensure that the technology infrastructure is in place to enable the city to provide services to the community. Prudent financial planning will ensure that ongoing funding for investment in technology is available. PROJECT EVALUATION Making decisions on technology implementations is a challenging and complex task. The challenging nature of these decisions is exacerbated by the expanding reach of technology and the increasingly interdisciplinary nature of emerging technologies. A major component of the SDTIP is the establishment of a cross-departmental approach to technology leadership to evaluate, prioritize, budget for and adopt digital transformation efforts. A new administrative order has been developed that provides a collaborative forum for key staff to validate and prioritize technology implementations. This approach also provides a structured venue to explore how particular configurations of a technology implementation may positively or negatively affect others within the organization. The process to evaluate digital transformation initiatives is ongoing and meetings may be held on a monthly, bimonthly or quarterly basis depending on the need. A number of factors are considered when putting together projects for the five-year program. All digital transformation and technology projects shall be consistent with: Strategic Digital Transformation Investment Program Public Health and Safety City Mission, Vision and Organizational Values Community Values City Council Goals Governing and Policy Documents Funding Availability Environmental Review Technology Standards and Strategic Plans H-3 Criteria Proposed projects are evaluated and prioritized by a set of criteria that include: Alignment with City Council goals and IT strategic plans, architecture, security and technology standards, including legislative and regulatory mandates, and administrative goals Coordination of IT investments across the enterprise to avoid duplication, maximizing the return on investment and increasing efficiency Effective articulation of the business case including valid operational benefits of the project Accuracy and reasonableness of cost and benefit estimates Consideration of potential project risks and identification of appropriate means to manage those risks Adherence to standard project management practices Capacity of staffing resources to implement the project As the SDTIP is implemented throughout the year, staff continually re-evaluate projects’ scopes, costs and schedules to responsibly and cost-effectively manage city resources. H-4 STRATEGIC DIGITAL TRANSFORMATION INVESTMENT PROGRAM PROJECTS The following contains information about the projects in the SDTIP. Full project pages are provided for the major new projects being requested for fiscal year 2024-25 and prior approved major projects that have changes in funding needs or project requirements. The estimated annual operational and replacement cost increases shown on each project page represent a departmental budgetary increase—generally to the Information Technology Department and its internal service citywide chargeback—separate from Capital Technology Fund activity. Projects for fiscal year 2024-25 and beyond are included in the graphs and tables provided but will not have full project pages until the first year of funding. Projects with no changes and projects that have been completed or cancelled going into fiscal year 2024-25 are listed below. Full details for these projects can be found in the appropriate prior fiscal year budget documents based on when they were new or had changes. Fiscal Year 2021-22 Continuing Projects – No Changes The following projects were approved during the fiscal year 2021-22 SDTIP and have no changes to their funding needs or project requirements and are still in process. These projects are included in the totals of the various graphs and charts shown in the SDTIP. • Outdoor Wireless Study • Online Permitting/Electronic Reviews, also known as E-Reviews Fiscal Year 2022-23 Continuing Projects – No Changes The following projects were approved during the fiscal year 2022-23 SDTIP and have no changes to their funding needs or project requirements and are still in process. These projects are included in the totals of the various graphs and charts shown in the SDTIP. • Computer Aided Dispatch • Enterprise Asset Management • Live 911 • Utility Billing Portal Fiscal Year 2023-24 Continuing Projects – No Changes The following projects were approved during the fiscal year 2023-24 SDTIP and have no changes to their funding needs or project requirements and are still in process. These projects are included in the totals of the various graphs and charts shown in the SDTIP. • Fleet Telematics • Records Digitization • Patron Print/Copy/PC Management • Staff Managed Print • Business Process Automation • Expansion of Yardi Completed, Cancelled or Delayed Projects The following projects were completed, cancelled or delayed during fiscal year 2023-24. The completed projects are not part of the totals of the various graphs and charts, while if there were cancelled projects they would have been included if the project was previously funded. If a project H-5 was previously funded and new funding was delayed the new year the project will be funded is shown and included in the appropriate graphs and charts. Completed • Project Portfolio Management Tool & Consulting • Enterprise Digital Asset Management • Exploration Hub Upgrade • Regulatory Water Usage Analytics • Payment Works • Past Perfect Upgrade/Migration Cancelled There are no cancelled projects from fiscal year 2023-24. Delayed The following projects that were previously approved and funded are being delayed: • Discovery Management • Facility Security Master Plan • Virtual Permitting Counter H-6 ESTIMATED TOTAL APPROPRIATIONS BY GOAL Going into fiscal year 2024-25, there are 41 continuing and new projects planned over the next five years at an estimated total cost of $36.7 million. Included in the $36.7 million is approximately $19.8 million in estimated new costs over the course of the same time frame to provide additional funding for the continuation of existing projects as well as funding for new projects. Within the $19.8 million is approximately $6.2 million of estimated new appropriations for fiscal year 2024-25 for these same projects. Build Capacity for Data-driven Decision Making, $1,655,000 , 4% Enhance Accessibility and Transparency, $1,173,000 , 3% Foster a Vibrant Civic Engagement Culture, $1,325,000 , 4% Promote Security and Sustainability through Connectivity, $13,265,366 , 36% Pursue Communitywide Digital Transformation, $19,268,500 , 53% Estimated Total Project Costs by Funding Source FY 2024-25 to FY 2028-29 $36.7 million H-7 Fiscal year 2024-25 estimated total appropriations by project goal Pursue Communitywide Digital Transformation $19.2 million This goal includes updating connectivity, up-to-date hardware and software, and a robust security strategy. Build Capacity for Data-Driven Decision Making $1.7 million This goal’s projects include the policies, procedures and staffing necessary for the city to fully capture the value of emerging models of data analytics. It builds a comprehensive approach to citywide data management to enable data-rich key performance metrics and effective operation of city departments. A data policy and resources will be created to align departments with standards of data cataloging for compliance ease of data sharing. Foster a Vibrant Civic Engagement Culture $1.3 million The city’s civic engagement culture builds upon the first two goals with a human-centered perspective to use data and technology in a way that respects people and their privacy. Projects in this category will support a vibrant culture where residents, organizations and businesses are invested in their community and its future. Enhance Accessibility and Transparency $1.2 million This goal recognizes that open government and approaching problem-solving from an accessibility perspective leads to better outcomes for all. Projects in this category include Civic Engagement with Open Data, Online Permitting/Electronic Reviews, Patron Print/Copy Management and a Virtual Permitting Counter. Promote Security and Sustainability through Connectivity $13.3 million Projects in this goal include the annual replacement of hardware and technology infrastructure, a Facility Security Master Plan, the replacement of the Police Computer Aided Dispatch System, and an enhancement to the 911 emergency system. H-8 PROJECTS PURSUE COMMUNITYWIDE DIGITAL TRANSFORMATION Consolidation & Replacement of Core Systems Project Benefits Without systems that can talk to each other, the city wastes time and resources manually compiling and integrating data. This greatly affects the city’s ability to make data-driven decisions, which are needed to ensure the highest and best use of taxpayer resources. Having fewer systems that consolidate the city’s core business functions will enable streamlined business processes and provide more timely access to data and information. It will also enhance operations and reduce inefficiencies of employees having to learn and operate multiple systems. About This Project This project provides for the consolidation and replacement of the city’s core systems. There are approximately 20 core systems including the city’s financial, human resources, payroll, budget, asset and work order management, licensing and permitting, utilities operations, computer-aided dispatch, land management, and program-event management. Rather than operate many systems with narrow applicability, the city is evaluating ways to consolidate its core systems as legacy applications are replaced. This may mean accelerated replacement for certain systems. The goal is to reduce redundancy and inefficiency associated with operating many different systems with different vendors. Consolidating down to a few systems that seamlessly integrate data and provide a more uniform interface will improve the experience of city employees and the public. The scope of this multi-year Project Funding Source: Technology Investment 9,400,000$ Managing Department: Information Technology Estimated Annual Costs Increase/(Decrease): Operational Not known Replacement Not known Prior Year Req FY24-25 Est FY25-26 Est FY26-27 Est FY28-29 Total Funding Source Budget Budget Budget Budget Budget Budget Tech. Investment 2,400,000$ 3,000,000$ 3,000,000$ 1,000,000$ -$ 9,400,000$ Est FY27-28 Budget -$ H-9 initiative includes the analysis, selection, purchase and implementation of the software and hardware necessary to consolidate, replace and integrate these systems with as few systems as possible while maintaining or enhancing existing capabilities. The city completed an in-depth process to evaluate functional requirements and business processes and the city’s consultant provided a comprehensive report outlining the city’s requirements for a new consolidated system. The report also outlined the options and costs associated with system consolidation and replacement based on an evaluation of the city’s needs. The city developed and issued a request for proposals for a new consolidated system and received 12 proposed solutions. Staff reviewed the proposals and invited four vendors for solution demonstrations. After demonstrations, staff selected 2 finalists and are in the process of completing a comprehensive due diligence process before selecting a final solution and entering contract negotiations. City staff are currently requesting funding of $3.0 million in fiscal year 2024-25 for acquisition and initial implementation and will request an estimated $4.0 million in funding for the continued implementation of a new system as part of the fiscal year 2025-26 and 2026-27 SDTIP. It is not currently feasible to determine any operational or replacement costs because they depend on the final costs established during contract negotiations. Connected Carlsbad Goal Pursue Communitywide Digital Transformation H-10 Digital Information Network Project Benefits This network will carry the information needed for data processing, email, internet access, public safety applications and a wide range of services that are crucial to city operations. In 2017, Crown Castle reached a licensing agreement with the city allowing it to install wireless data transmitters on municipal facilities. The agreement with Crown Castle gives the city access to existing fiber-optic cable assets owned by Crown Castle for city use. These cables are made up of multiple fibers which cannot be physically separated from the rest of Crown Castle’s cable infrastructure. The city must make special arrangements with Crown Castle to use this asset. About This Project The city has an opportunity to work with a private company called Crown Castle to build a more robust digital information network for its employees and facilities. Beginning in 2019, the city took full advantage of this opportunity and replaced a leased network from a third-party vendor. As the initial phase of this project has been completed, staff are looking ahead to the second and third phases as originally approved by the City Council. These include leveraging the network to expand services to the Transportation and Utilities departments to replace the aging network infrastructure supporting their key systems. The additional funding request for fiscal year 2024-25 includes elements required for this expansion as well as some feature and functionality enhancements to the services already in place. For fiscal year 2024-25, $87,000 was included in the Information Technology Department’s operating fund budget request to account for expansion of the network. It is estimated the operational and replacement requirements will be approximately between $150,000 and $200,000 for fiscal year 2025- 26 and annually thereafter. The cost associated with the prior year funding have previously been included in the Information Technology Department’s Operating or Replacement budget requests. Connected Carlsbad Goal Pursue Communitywide Digital Transformation H-11 Payment Card Industry Compliance Project Benefits Recreation facilities accept credit card payments for various recreation activities such as enrolling in recreation classes or summer programs. When accepting credit card payments at a city facility, adhering to PCI compliance is crucial for maintaining customer trust, avoiding fines and safeguarding the city’s reputation. About This Project This project will replace all the existing credit card devices at city recreation facilities with new devices that are PCI compliant. Connected Carlsbad Goal Pursue Communitywide Digital Transformation Project Funding Source: Technology Investment 62,000$ Managing Department: Information Technology Estimated Annual Costs Increase/(Decrease): Operational None Replacement None Prior Year Req FY24-25 Est FY25-26 Est FY26-27 Est FY28-29 Total Funding Source Budget Budget Budget Budget Budget Budget Tech. Investment -$ 62,000$ -$ -$ -$ 62,000$ Est FY27-28 Budget -$ H-12 Radio Frequency Identification Replacement Project Benefits The library currently relies heavily on automation for materials management. A core component of this automation process is the Radio Frequency Identification system used for physical material management. RFID automation is integral to the entire materials management process from checking-out materials to automated returns. About This Project The existing RFID equipment installed at each of the three library facilities is beyond the end of its life, is no longer supported and replacement parts are no longer being manufactured. This project involves the identification, acquisition and implementation of replacement RFID equipment including self-check kiosks, automated material handling systems and security pedestals. Connected Carlsbad Goal Pursue Communitywide Digital Transformation Project Funding Source: Technology Investment 600,000$ Managing Department: Information Technology Estimated Annual Costs Increase/(Decrease): Operational None Replacement None Prior Year Req FY24-25 Est FY25-26 Est FY26-27 Est FY28-29 Total Funding Source Budget Budget Budget Budget Budget Budget Tech. Investment -$ 600,000$ -$ -$ -$ 600,000$ Est FY27-28 Budget -$ H-13 Risk Management Solution Assessment Project Benefits The existing risk management solution was developed internally by city staff and is based on the Microsoft Access platform. Microsoft Access lacks the functionality and capabilities of an enterprise solution. Implementing a commercially developed risk management solution or including risk management functionality into the solution selected as part of the Consolidation & Replacement of Core Systems initiative will ensure the ongoing stability and security of the data and risk management claim tracking. About This Project With the assistance of an outside consultant, staff will complete a comprehensive process review and needs assessment that will fully document the functional requirements for a risk management solution. The findings of this assessment will be used to evaluate the possibility of incorporating risk management functionality into the Consolidation & Replacement of Core Systems. If the solution cannot be included as part of the Consolidation & Replacement of Core Systems, the findings will be used to develop a Request for Proposal to identify an enterprise risk management solution. Connected Carlsbad Goal Pursue Communitywide Digital Transformation Project Funding Source: Technology Investment 40,000$ Managing Department: Information Technology Human Resources Estimated Annual Costs Increase/(Decrease): Operational 4,000$ Replacement None Prior Year Req FY24-25 Est FY25-26 Est FY26-27 Est FY28-29 Total Funding Source Budget Budget Budget Budget Budget Budget Tech. Investment -$ 40,000$ -$ -$ -$ 40,000$ -$ Est FY27-28 Budget H-14 Station Alerting Equipment Replacement Project Benefits Fire station alerting systems are installed in every fire station in the city and are critical components in the rapid response of fire and emergency services. These systems utilize advanced technology to ensure that fire personnel are notified of emergencies almost instantaneously. The system at each station integrates with the North County Dispatch Joint Powers Authority’s Computer-Aided Dispatch system to deliver incident details swiftly and accurately, enhancing situational awareness and communication. Features like text-to-speech technology, high contrast message signs and various audio and visual alerts ensure timely turn out and response times. The existing fire station alerting equipment and infrastructure at fire stations 1, 3, 4, 5 and 6 is over 20 years old, past end of life and no longer supported. About This Project Acquire and install new fire station alerting equipment and infrastructure at fire stations 1, 3, 4, 5 and 6. The equipment will match what is currently installed at fire stations 2 and 7. Connected Carlsbad Goal Pursue Communitywide Digital Transformation Project Funding Source: Technology Investment 500,000$ Managing Department: Information Technology Fire Estimated Annual Costs Increase/(Decrease): Operational 50,000$ Replacement Not Known Prior Year Req FY24-25 Est FY25-26 Est FY26-27 Est FY28-29 Total Funding Source Budget Budget Budget Budget Budget Budget Tech. Investment -$ 500,000$ -$ -$ -$ 500,000$ -$ Est FY27-28 Budget H-15 BUILD CAPACITY FOR DATA-DRIVEN DECISION MAKING Data Governance and Operational Analytics Project Benefits Building a comprehensive approach to citywide data management to enable data-rich key performance metrics and effective operation of city departments. Council recently approved a policy statement on citywide data governance and management and a data governance committee has been established. Additional funding is being requested to purchase additional software licenses and data lake design and engineering services. About This Project This project will serve as the foundation for delivering more efficient city services through a better understanding of key performance metrics for all city departments by leveraging data. The project will include the implementation of a citywide data policy to govern how the organization collects, maintains and secures data in order to enable rich reporting and analytics for operations and leadership. The policy will enact a data governance team that can revise the policy as needs and priorities change. The data governance team will direct and oversee the data catalog and data inventory and participate in the evaluation of new systems that will collect data. The data governance team will also regularly review data security and audit processes of data collection and retention. The project will fund the implementation of a data lake to house a centralized location to facilitate easier cross department reporting. Staff training of data stewardship and how to unlock operational insights using new data tools is an additional element of the project. This project will also include the delivery of department performance dashboards to inform leadership and council on the ongoing efforts of agency goals. In addition, the project creates capacity to acquire external datasets that inform city operations and provide benefit to multiple departments. Connected Carlsbad Goal Build Capacity for Data-Driven Decision Making Project Funding Source: Technology Investment 495,000$ Managing Department: Innovation & Economic Development Information Technology Estimated Annual Costs Increase/(Decrease): Operational 310,000$ Replacement None Prior Year Req FY24-25 Est FY25-26 Est FY26-27 Est FY28-29 Total Funding Source Budget Budget Budget Budget Budget Budget Tech. Investment 405,000$ 18,000$ 18,000$ 18,000$ 18,000$ 495,000$ Est FY27-28 Budget 18,000$ H-16 Facility Monitoring and Management Project Benefits Automated facility monitoring will provide city staff with the ability to remotely monitor the condition, temperature, and power at over 100 city facilities. Alerting to conditions in city facilities will allow staff to respond, reducing or limiting any potential damage that may occur from these conditions. About This Project This project will identify, procure and implement a citywide facility monitoring and management solution for city facilities. Staff are currently in the process of issuing and reviewing responses to a request for qualifications to identify at least two solutions that will be part of a pilot program at two city facilities. At the completion of the pilot, staff will select a solution for implementation as part of an expanding implementation at additional city facilities. The additional funding request for fiscal year 2024-25 is being requested to support the expanded implementation. It is not currently feasible to determine any operational or replacement costs because they depend on the recommendations of the request for proposal process; staff will identify more definitive costs during the request for proposal process. Connected Carlsbad Goal Build Capacity for Data-Driven Decision Making Project Funding Source: Technology Investment 100,000$ Managing Department: Innovation & Economic Development Fleet & Facilities Library & Cultural Arts Estimated Annual Costs Increase/(Decrease): Operational Not known Replacement Not known Prior Year Req FY24-25 Est FY25-26 Est FY26-27 Est FY28-29 Total Funding Source Budget Budget Budget Budget Budget Budget Tech. Investment 50,000$ 25,000$ 25,000$ -$ -$ 100,000$ Est FY27-28 Budget -$ H-17 Guest Traffic and Facility Usage Analytics Project Benefits Currently, the ability to track facility usage is limited to a count of people that walk through the public entrance of a city library. Once a guest enters the facility, the city does not have any data to identify what areas of a facility are being used or not used. Additionally, the existing system is past end of life, is no longer supported and needs to be replaced. Replacing the existing system with a newer solution that leverages innovative technology will give the city data and analytics that will provide greater insight into how city facilities are being used. About This Project This project will identify, procure and implement a citywide guest traffic and facility usage analytics solution for city library facilities, parks and recreation centers. Staff are currently in the process of issuing and reviewing responses to a request for qualifications to identify at least two solutions that will be part of a pilot program at two city facilities. At the completion of the pilot, staff will select a solution for implementation as part of an expanding implementation at additional city library facilities, parks and recreation centers. The additional funding request for fiscal year 2024-25 is being requested to support the expanded implementation. It is not currently feasible to determine any operational or replacement costs because they depend on the recommendations of the request for proposal process; staff will identify more definitive costs during the request for proposal process. Connected Carlsbad Goal Build Capacity for Data-Driven Decision Making Project Funding Source: Technology Investment 100,000$ Managing Department: Library & Cultural Arts Parks & Recreation Estimated Annual Costs Increase/(Decrease): Operational Not known Replacement Not known Prior Year Req FY24-25 Est FY25-26 Est FY26-27 Est FY28-29 Total Funding Source Budget Budget Budget Budget Budget Budget Tech. Investment 50,000$ 25,000$ 25,000$ -$ -$ 100,000$ Est FY27-28 Budget -$ H-18 Professional Technical Services for Data Project Delivery Project Benefits Leverage the expertise of the Esri Advantage program to assist city staff in the development of data visualization tools and dashboards. Combining city data with spatial information allows data to be transformed into graphical or interactive forms that can reveal patterns, trends and insights, presents data in a format that communicates complex information in a clear and engaging way and enables data-driven decision making. About This Project The Esri Advantage Program provides technical consulting to assist staff on projects that combine data from city systems with the spatial data from the city’s geographic information system (GIS) application to provide robust data visualization tools. The program is currently being used to complete the first phase of the Fire Department Standards of Cover project. This funding will allow for staff to be agile in starting and executing new projects that use GIS and Esri. The credits are also flexible so as city needs change, the city can adapt its use of the technical assistance. It is estimated that the city will use at least $70,000 worth of credits in fiscal year 2024-25. At this time, city staff do not expect this project to result in an increase to operating or replacement costs. Connected Carlsbad Goal Build Capacity for Data-Driven Decision Making Project Funding Source: Technology Investment 490,000$ Managing Department: Innovation & Economic Development Information Technology Estimated Annual Costs Increase/(Decrease): Operational None Replacement None Prior Year Req FY24-25 Est FY25-26 Est FY26-27 Est FY28-29 Total Funding Source Budget Budget Budget Budget Budget Budget Tech. Investment 140,000$ 70,000$ 70,000$ 70,000$ 70,000$ 490,000$ 70,000$ Est FY27-28 Budget H-19 FOSTER A VIBRANT CIVIC ENGAGEMENT CULTURE There are no projects requesting budget for fiscal year 2024-25 that are being proposed under the Foster a Vibrant Civic Engagement Culture goal. ENHANCE ACCESSIBILITY AND TRANSPARENCY There are no projects requesting budget for fiscal year 2024-25 that are being proposed under the Enhance the Accessibility and Transparency goal. H-20 PROMOTE SECURITY AND SUSTAINABILITY THROUGH CONNECTIVITY Annual Hardware and Infrastructure Replacement Project Benefits Citywide hardware and infrastructure changes are necessary and ongoing. Replacement equipment is needed to support the city's technology infrastructure and department-specific needs. About This Project This project provides for replacement equipment funding for scheduled replacement of laptops, desktops, internal servers, routers, switches, and other network and data center requirements. There is no increase or decrease in operational costs associated with the annual replacement program. Due to the circular nature of the replacement program, replacement costs fluctuate annually depending on the hardware life cycles which can range from three years to 20 years. Connected Carlsbad Goal Promote Security and Sustainability through Connectivity Project Funding Source: IT Replacement Fund 7,080,786$ Managing Department: Information Technology Estimated Annual Costs Increase/(Decrease): Operational None Replacement None Prior Year Req FY24-25 Est FY25-26 Est FY26-27 Est FY28-29 Total Funding Source Budget Budget Budget Budget Budget Budget IT Replacement 1,021,742$ 1,209,044$ 1,100,000$ 1,050,000$ 1,200,000$ 7,080,786$ Est FY27-28 Budget 1,500,000$ H-21 Cybersecurity Program Development Project Benefits As a result of internal assessments and evaluations by external parties, city staff have identified certain initiatives within the five functions of the cybersecurity framework to translate into projects. Implementation of these projects will incur costs and require funding. The funding will cover assessment and evaluation, implementation and staff training. Once the security infrastructure is in place, operational costs will move to the operations budget. City staff identified and planned the following projects for implementation: • Disaster Recovery program assessment and development, • Detection capability with security incident and event management technology, • Cybersecurity governance program, • Data classification tools, and • Incident response procedure development and training. About This Project The cybersecurity program provides support and protection to the City of Carlsbad so it can successfully accomplish its mission. As the threat landscape is changing and getting more sophisticated in lockstep with advances in technology, we need to ensure the city’s cybersecurity program is robust enough to keep threat actors from causing harm to the city. To ensure we address the different areas and aspects of cybersecurity, city staff have developed and adopted an approach based on the National Institute of Standards and Technology Cybersecurity Framework to cybersecurity defense program which covers five functions: • Identify – Develop the organizational understanding to manage cybersecurity risk to systems, assets, data and capabilities. The activities in the Identify function are foundational for effective use of the Framework. Understanding the business context, the resources that support critical functions, and the related cybersecurity risks enables an organization to focus and prioritize its efforts, consistent with its risk management strategy and business needs. Examples of outcome categories within this function include Asset Management, Business Environment, Governance, Risk Assessment and Risk Management Strategy. Project Funding Source: Technology Investment 1,050,000$ Managing Department: Information Technology Estimated Annual Costs Increase/(Decrease): Operational Unknown Replacement Unknown Prior Year Req FY24-25 Est FY25-26 Est FY26-27 Est FY28-29 Total Funding Source Budget Budget Budget Budget Budget Budget Tech. Investment 550,000$ 100,000$ 100,000$ 100,000$ 100,000$ 1,050,000$ Est FY27-28 Budget 100,000$ H-22 • Protect – Develop and implement the appropriate safeguards to ensure delivery of critical infrastructure services. The Protect function supports the ability to limit or contain the impact of a potential cybersecurity event. Examples of outcome categories within this function include Access Control, Awareness and Training, Data Security, Information Protection Processes and Procedures, Maintenance, and Protective Technology. • Detect – Develop and implement the appropriate activities to identify the occurrence of a cybersecurity event. The Detect function enables timely discovery of cybersecurity events. Examples of outcome categories within this function include Anomalies and Events, Security Continuous Monitoring, and Detection Processes. • Respond – Develop and implement the appropriate activities to act regarding a detected cybersecurity event. The Respond function supports the ability to contain the impact of a potential cybersecurity event. Examples of outcome categories within this function include Response Planning, Communications, Analysis, Mitigation and Improvements. • Recover – Develop and implement the appropriate activities to maintain plans for resilience and to restore any capabilities or services that were impaired due to a cybersecurity event. The Recover function supports timely recovery to normal operations to reduce the impact from a cybersecurity event. Examples of outcome categories within this function include Recovery Planning, Improvements and Communications. At this time and depending on the types of programs implemented over the course of the project, city staff cannot feasibly determine any operational or replacement costs for fiscal year 2025-26 and beyond. No new operational or replacement costs were requested for the fiscal year 2024-25 budget cycle. Connected Carlsbad Goal Promote Security and Sustainability through Connectivity H-23 Virtual Reality Training Project Benefits Virtual reality training offers a multitude of benefits for police officers which enhances their preparedness and capabilities in a safe and controlled environment. One of the primary advantages is the ability to simulate realistic scenarios, allowing officers to practice responses to high-risk situations without the associated dangers. This immersive training not only improves decision-making and situational awareness but also allows for the rehearsal of critical skills such as de-escalation and use of force in a variety of contexts. Moreover, VR training can be more cost-effective and time-efficient compared to traditional methods, reducing the need for physical resources and enabling flexible scheduling. The use of VR also supports continuous learning and skill development as scenarios can be easily updated to reflect new challenges and procedures. About This Project Identify, acquire and implement a VR solution that provides police training in a variety of scenarios including de-escalation, use of force and other customizable real-life scenarios. Connected Carlsbad Goal Promote Security and Sustainability through Connectivity Project Funding Source: Technology Investment 75,000$ Managing Department: Information Technology Police Estimated Annual Costs Increase/(Decrease): Operational 1,300 Replacement Not Known Prior Year Req FY24-25 Est FY25-26 Est FY26-27 Est FY28-29 Total Funding Source Budget Budget Budget Budget Budget Budget Tech. Investment -$ 75,000$ -$ -$ -$ 75,000$ Est FY27-28 Budget -$ H-24 MINOR PROJECTS Promote Security and Sustainability Through Connectivity Billiards Room Membership Infrastructure This project involves implementing a membership program for the billiards room at the Senior Center similar to the one that is already in place for the Senior Center fitness room. In addition to configuring the membership program in the existing recreation management application, an access control scanner will be installed that integrates with the recreation management application and controls access into the billiards room. Construction Waste Management In order to meet state reporting and metrics requirements related to the diversion of construction and demolition waste, the city needs to implement an enterprise solution capable of tracking the amount of waste a permitted project directs to recycling versus a landfill. Narcotics Safe Migration The existing safes used to manage and secure the inventory of medical narcotics used by the Fire department are connected to an on-premises software solution that is being retired and will no longer be supported by the vendor. As a result, the city needs to migrate to the vendor’s new cloud- based solution which also requires the replacement of existing fingerprint scanners attached to each safe with new biometric devices. H-25 FUTURE PROJECTS Estimated Fiscal Year 2024-25 through 2028-29 Appropriations by Goal The City of Carlsbad’s SDTIP for fiscal year 2024-25 to fiscal year 2028-29 outlines 41 projects at an estimated total cost of $36.7 million. Of the $36.7 million, $19.8 million is for new or increased funding for projects over the next five years. The information provided for future years reflects the most comprehensive snapshot of known or anticipated future projects as well as associated estimated costs. Estimated Fiscal Year 2024-25 Appropriations by Goal The fiscal year 2024-25 SDTIP outlines $6.2 million in new appropriations for fiscal year 2024-25 to provide additional funding for the continuation of existing projects as well as funding for new projects. Build Capacity for Data- driven Decision Making, $680,000 -4% Enhance Accessibility and Transparency, $51,000 -0% Foster a Vibrant Civic Engagement Culture, $400,000 -2% Promote Security and Sustainability through Connectivity, $9,847,244 -50% Pursue Communitywide Digital Transformation, $8,777,000 -44% Estimated Future Projects Costs by Goal FY 2024-25 to FY 2028-29 $19.8 million Enhance Accessibility and Transparency, $(61,000)--1% Build Capacity for Data-driven Decision Making, $138,000 -2% Promote Security and Sustainability through Connectivity, $1,431,044 -23% Pursue Communitywide Digital Transformation, $4,702,000 -74% Requested FY 2024-25 Appropriations by Goal $6.2 million H-26 Estimated Fiscal Year 2025-26 through 2028-29 Pending Current or New Projects with Future Funding Requests The projects listed in the table below represent projects that have been presented to the SDTIP Committee but are not requesting funding or have been delayed for the fiscal year 2024-25 budget year. These projects will be reevaluated for the fiscal year 2025-26 budget year and if approved for funding in fiscal year 2025-26 will then have a project page included as part of the SDTIP in fiscal year 2025-26 or as appropriate. These projects have been included in the estimated five-year tables and funding projections. Connected Requested Estimated Estimated Estimated Estimated Estimated Carlsbad Funding Prior Year 1 Year 2 Year 3 Year 4 Year 5 Total Goal Source Appropriation 2024-25 2025-26 2026-27 2027-28 2028-29 Funding AI Assessment PCDT TICF -$ -$ 40,000$ -$ -$ -$ 40,000$ Tightrope PCDT TICF - - 35,000 - - - 35,000 Discovery Management Assessment BCDDM TICF 30,000 - 140,000 - - - 170,000 Audio Visual Upgrades FVCEC TICF 825,000 - 100,000 100,000 100,000 100,000 1,225,000 Civic Engagement with Open Data EAT TICF 198,000 - 18,000 18,000 18,000 18,000 270,000 Remote Hold Pickup Locker EAT TICF - - 40,000 - - - 40,000 Command Central A/V Infrastucture PSSC TICF - - 200,000 - - - 200,000 Facility Security Master Plan PSSC TICF 200,000 - 721,000 311,000 438,000 222,000 1,892,000 Police Body Camera Replacement PSSC Pending - - - - 500,000 - 500,000 Police In-car Video Replacement PSSC Pending - - - - 550,000 - 550,000 Police Records Management Migration PSSC TICF - - 200,000 - - - 200,000 Citywide Validated ID File Transfer PSSC TICF - - 4,200 - - - 4,200 Major Incident/Special Event Management System PSSC TICF - - 20,000 - - - 20,000 1,253,000$ -$ 1,518,200$ 429,000$ 1,606,000$ 340,000$ 5,146,200$ Connected Carlsbad Goal Abbreviations Build Capacity for Data-driven Decision Making = BCDDM Enhance Accessibility and Transparency = EATFoster a Vibrant Civic Engagement Culture = FVCEC Promote Security and Sustainability through Connectivity = PSSC Pursue Communitywide Digital Transformation = PCDT Funding Source Abbreviations Information Technology Replacement Fund = ITRF Technology Investment Capital Fund = TICF Utilities Enterprise Funds (Operating or Capital) = UEF Funding Source Not Identified = Pending Project Name H-27 FIVE-YEAR SCHEDULE OF PROJECTS BY CONNECTED CARLSBAD GOAL Requested Estimated Estimated Estimated Estimated Estimated Funding Prior Year 1 Year 2 Year 3 Year 4 Year 5 Total Project Name Source Appropriation 2024-25 2025-26 2026-27 2027-28 2028-29 Funding Consolidation & Replacement of Core Systems TICF 2,400,000$ 3,000,000$ 3,000,000$ 1,000,000$ -$ -$ 9,400,000$ Digital Information Network TICF 5,525,584 500,000 - - - - 6,025,584 Enterprise Asset Management System TICF 1,600,000 - - - - - 1,600,000 Fleet Telematics TICF 175,916 - - - - - 175,916 Payment Card Industry (PCI) Compliance TICF - 62,000 - - - - 62,000 RFID Replacement TICF - 600,000 - - - - 600,000 Risk Management Solution Assessment TICF - 40,000 - - - - 40,000 Staff Managed Print TICF 700,000 - - - - - 700,000 Station Alerting Equipment Replacement TICF - 500,000 - - - - 500,000 Utility Billing Portal UEF 90,000 - - - - - 90,000 AI Assessment TICF - - 40,000 - - - 40,000 Tightrope TICF - - 35,000 - - - 35,000 10,491,500 4,702,000 3,075,000 1,000,000 - - 19,268,500 Business Process Automation TICF 300,000 - - - - - 300,000 Data Governance and Operational Analytics TICF 405,000 18,000 18,000 18,000 18,000 18,000 495,000 Discovery Management Assessment TICF 30,000 - 140,000 - - - 170,000 Facility Monitoring and Analytics TICF 50,000 25,000 25,000 - 100,000 Guest Traffic and Facility Usage Analytics TICF 50,000 25,000 25,000 - 100,000 Professional Technical Services for Data Project Delivery TICF 140,000 70,000 70,000 70,000 70,000 70,000 490,000 975,000 138,000 278,000 88,000 88,000 88,000 1,655,000 Audio Visual Upgrades TICF 825,000 - 100,000 100,000 100,000 100,000 1,225,000 Outdoor Wireless Study TICF 100,000 - - - - - 100,000 925,000 - 100,000 100,000 100,000 100,000 1,325,000 Civic Engagement with Open Data TICF 198,000 - 18,000 18,000 18,000 18,000 270,000 Online Permitting/Electronic Reviews (E-Reviews)TICF 645,000 - - - - - 645,000 Patron Print/Copy/PC Management TICF 88,000 - - - - - 88,000 Record Digitization TICF 100,000 - - - - - 100,000 Virtual Permitting Counter (OpenCounter)TICF 61,000 (61,000) - - - - - Expansion of Yardi TICF 30,000 - - - - - 30,000 Remote Hold Pickup Locker TICF - - 40,000 - - - 40,000 1,122,000 (61,000) 58,000 18,000 18,000 18,000 1,173,000 Annual Hardware and Infrastructure Replacement ITRF 1,021,742 1,209,044 1,100,000 1,050,000 1,500,000 1,200,000 7,080,786 Command Central A/V Infrastucture TICF - - 200,000 - - - 200,000 Computer Aided Dispatch (CAD)TICF 1,580,000 - - - - - 1,580,000 Cyber Security Program Development TICF 550,000 100,000 100,000 100,000 100,000 100,000 1,050,000 Facility Security Master Plan TICF 200,000 - 721,000 311,000 438,000 222,000 1,892,000 Live 911 TICF 66,380 - - - - - 66,380 Police Body Camera Replacement Pending - - - - 500,000 - 500,000 Police In-car Video Replacement Pending - - - - 550,000 - 550,000 Police Records Management Migration TICF - - 200,000 - - - 200,000 Virtual Reality (VR) Training TICF - 75,000 - - - - 75,000 Billiards Room Membership Infrastructure TICF - 12,000 - - - - 12,000 Citywide Validated ID File Transfer TICF - - 4,200 - - - 4,200 Construction Waste Management Tracking TICF - 20,000 - - - - 20,000 Major Incident/Special Event Management System TICF - - 20,000 - - - 20,000 Narcotic Safe Migration TICF - 15,000 - - - - 15,000 3,418,122 1,431,044 2,345,200 1,461,000 3,088,000 1,522,000 13,265,366 16,931,622$ 6,210,044$ 5,856,200$ 2,667,000$ 3,294,000$ 1,728,000$ 36,686,866$ Information Technology Replacement Fund = ITRF Technology Investment Capital Fund = TICF Utilities Enterprise Funds (Operating or Capital) = UEF Funding Source Not Identified = Pending Foster a Vibrant Civic Engagement Culture Projects Total Funding Source Abbreviations Promote Security and Sustainability through Connectivity Total Foster a Vibrant Civic Engagement Culture Total Enhance Accessibility and Transparency Enhance Accessibility and Transparency Total Promote Security and Sustainability through Connectivity Connected Carlsbad Goal Pursue Communitywide Digital Transformation Build Capacity for Data-driven Decision Making Build Capacity for Data-driven Decision Making Total Pursue Communitywide Digital Transformation Total H-28 FIVE-YEAR SCHEDULE OF PROJECTS BY FUND Connected Requested Estimated Estimated Estimated Estimated Estimated Carlsbad Prior Year 1 Year 2 Year 3 Year 4 Year 5 Total Project Name Goal Appropriation 2024-25 2025-26 2026-27 2027-28 2028-29 Funding Technology Investment Capital Fund AI Assessment PCDT -$ -$ 40,000$ -$ -$ -$ 40,000$ Audio Visual Upgrades FVCEC 825,000 - 100,000 100,000 100,000 100,000 1,225,000 Billiards Room Membership Infrastructure PSSC - 12,000 - - - - 12,000 Business Process Automation BCDDM 300,000 - - - - - 300,000 Citywide Validated ID File Transfer PSSC - - 4,200 - - - 4,200 Civic Engagement with Open Data EAT 198,000 - 18,000 18,000 18,000 18,000 270,000 Command Central A/V Infrastucture PSSC - - 200,000 - - - 200,000 Computer Aided Dispatch (CAD)PSSC 1,580,000 - - - - - 1,580,000 Consolidation & Replacement of Core Systems PCDT 2,400,000 3,000,000 3,000,000 1,000,000 - - 9,400,000 Construction Waste Management Tracking PSSC - 20,000 - - - - 20,000 Cyber Security Program Development PSSC 550,000 100,000 100,000 100,000 100,000 100,000 1,050,000 Data Governance and Operational Analytics BCDDM 405,000 18,000 18,000 18,000 18,000 18,000 495,000 Digital Information Network PCDT 5,525,584 500,000 - - - - 6,025,584 Discovery Management Assessment BCDDM 30,000 - 140,000 - - - 170,000 Enterprise Asset Management System PCDT 1,600,000 - - - - - 1,600,000 Expansion of Yardi EAT 30,000 - - - - - 30,000 Facility Monitoring and Analytics BCDDM 50,000 25,000 25,000 - - - 100,000 Facility Security Master Plan PSSC 200,000 - 721,000 311,000 438,000 222,000 1,892,000 Fleet Telematics PCDT 175,916 - - - - - 175,916 Guest Traffic and Facility Usage Analytics BCDDM 50,000 25,000 25,000 - - - 100,000 Live 911 PSSC 66,380 - - - - - 66,380 Major Incident/Special Event Management System PSSC - - 20,000 - - - 20,000 Narcotic Safe Migration PSSC - 15,000 - - - - 15,000 Online Permitting/Electronic Reviews (E-Reviews)EAT 645,000 - - - - - 645,000 Outdoor Wireless Study FVCEC 100,000 - - - - - 100,000 Patron Print/Copy/PC Management EAT 88,000 - - - - - 88,000 Payment Card Industry (PCI) Compliance PCDT - 62,000 - - - - 62,000 Police Records Management Migration PSSC - - 200,000 - - - 200,000 Professional Technical Services for Data Project Delivery BCDDM 140,000 70,000 70,000 70,000 70,000 70,000 490,000 Record Digitization EAT 100,000 - - - - - 100,000 Remote Hold Pickup Locker EAT - - 40,000 - - - 40,000 RFID Replacement PCDT - 600,000 - - - - 600,000 Risk Management Solution Assessment PCDT - 40,000 - - - - 40,000 Staff Managed Print PCDT 700,000 - - - - - 700,000 Station Alerting Equipment Replacement PCDT - 500,000 - - - - 500,000 Tightrope PCDT - - 35,000 - - - 35,000 Virtual Permitting Counter (OpenCounter)EAT 61,000 (61,000) - - - - - Virtual Reality (VR) Training PSSC - 75,000 - - - - 75,000 Technology Investment Capital Fund Total 15,819,880 5,001,000 4,756,200 1,617,000 744,000 528,000 28,466,080 Information Technology Replacement Fund Annual Hardware and Infrastructure Replacement ITRF 1,021,742 1,209,044 1,100,000 1,050,000 1,500,000 1,200,000 7,080,786 Information Technology Replacement Fund Total 1,021,742 1,209,044 1,100,000 1,050,000 1,500,000 1,200,000 7,080,786 Utilities Enterprise Funds (Operating or Capital) Utility Billing Portal UEF 90,000 - - - - - 90,000 Total Utilities Enterprise Funds (Operating or Capital)90,000 - - - - - 90,000 Funding Source Not Identified Police Body Camera Replacement PSSC - - - - 500,000 - 500,000 Police In-car Video Replacement PSSC - - - - 550,000 - 550,000 Funding Source Not Identified Total - - - - 1,050,000 - 1,050,000 16,931,622$ 6,210,044$ 5,856,200$ 2,667,000$ 3,294,000$ 1,728,000$ 36,686,866$ Connected Carlsbad Goal Abbreviations Build Capacity for Data-driven Decision Making = BCDDM Enhance Accessibility and Transparency = EAT Foster a Vibrant Civic Engagement Culture = FVCEC Promote Security and Sustainability through Connectivity = PSSC Pursue Communitywide Digital Transformation = PCDT Funding Source ProjectsTotal H-29 PROJECT FUNDING SOURCES Technology Investment Capital Fund – Funds set aside on a yearly basis to fund ongoing SDTIP digital transformation and technology projects. Revenue is mostly comprised of an annual General Fund transfer, estimated based on a portion of the transfer of 6% of General Fund revenues, in accordance with City Council Policy 91, Long Term General Fund Capital Funding Policy. Information Technology Replacement Fund – Funds are collected annually from the city’s operating departments as part of the IT Department internal service fund chargeback; charges are based on an asset’s lifecycle and original cost. These funds are used to replace assets at the end of their useful lives. Utilities Enterprise Funds (Operating or Capital) – For information regarding the Utilities Enterprise Funds, please see the Public Works Section of the Fiscal Year 2024-25 Operating Budget and for the Capital Funds please see the CIP Section of the Fiscal Year 2024-25 Operating Budget. Funding Source Not Identified – The funding for a project has not been identified or established at this time. Once the funding source is identified or established the project will reflect that source. PROJECTED FUND BALANCES TECHNOLOGY INVESTMENT CAPITAL FUND FUNDS AVAILABILITY PROJECTION Estimated Requested Estimated Estimated Estimated Estimated Balance Year 1 Year 2 Year 3 Year 4 Year 5 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 5,194,982$ 5,223,208$ 5,596,819$ 9,212,225$ 13,805,280$ Transfers In 4,779,226 4,874,811 4,972,307 5,071,753 5,173,188 Interest Revenue 250,000 255,000 260,100 265,302 270,608 Project Appropriations 5,001,000 4,756,200 1,617,000 744,000 528,000 5,223,208$ 5,596,819$ 9,212,225$ 13,805,280$ 18,721,076$ 5,194,982$ INFORMATION TECHNOLOGY DEPARTMENT REPLACEMENT FUND FUNDS AVAILABILITY PROJECTION Requested Estimated Estimated Estimated Estimated Balance Year 1 Year 2 Year 3 Year 4 Year 5 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2,896,227$ 3,378,634$ 3,628,634$ 3,928,634$ 3,778,634$ Replacement Cost Revenue 1,691,451 1,350,000 1,350,000 1,350,000 1,350,000 Replacement Appropriations 1,209,044 1,100,000 1,050,000 1,500,000 1,200,000 3,378,634$ 3,628,634$ 3,928,634$ 3,778,634$ 3,928,634$ 2,896,227$ Beginning Available Balance Ending Available Balance Balance Available for Future Projects Beginning Available Balance Ending Available Balance Estimated Available Funds H-30 REVENUE PROJECTIONS SCHEDULE BUDGET EXPENDITURE SCHEDULE 2020-21 2021-22 2022-23 2023-24 2024-25 Actual Actual Actual Projected Estimated Revenue Revenue Revenue Revenue Revenue Technology Investment Capital NA 10,747,619$ 4,127,866$ 4,440,000$ 4,534,000$ Information Technology Department Replacement 1,221,363 1,491,070 1,576,979 1,628,040 1,691,451 Total 1,221,363$ 12,238,689$ 5,704,845$ 6,068,040$ 6,225,451$ Fund 2021-22 2022-23 2023-24 2024-25 2024-25 2024-25 Actual Actual Estimated Continuing New Total Expense Expense Expense Appropriations Appropriations Appropriations Technology Investment Capital 1,615,320$ 1,872,512$ 1,500,000$ 7,821,618$ 5,001,000$ 12,822,618$ Information Technology Department Replacement 935,994 993,515 1,300,000 645,320 1,209,044 1,854,364 Total 2,551,314$ 2,866,027$ 2,800,000$ 8,466,938$ 6,210,044$ 14,676,982$ Fund H-31 PROJECT ESTIMATED OPERATIONAL REQUIREMENTS The projects listed on the table below represent projects that have been determined will have or may have operating budget impacts in the fiscal year identified. Projects that have a zero listed for each fiscal year are pending an estimate due to the possible solution having to many pending variables. Once a more exact solution is identified the operational estimate will be updated. As the fiscal years identified on the table become the next budgeting year, the Information Technology Department will include a request for the additional operating budget in the department’s annual operating budget request. Total Year 1 Year 2 Year 3 Year 4 Year 5 Project Name Funding 2024-25 2025-26 2026-27 2027-28 2028-29 Totals AI Assessment 40,000$ -$ -$ -$ -$ -$ -$ Billiards Room Membership Infrastructure 12,000 - 2,000 - - - 2,000 Business Process Automation 300,000 - - - - - - Citywide Validated ID File Transfer 4,200 - - 1,000 - - 1,000 Civic Engagement with Open Data 270,000 65,000 40,000 25,000 - - 130,000 Computer Aided Dispatch (CAD)1,580,000 75,000 20,000 - - - 95,000 Consolidation & Replacement of Core Systems 9,400,000 - - - - - - Construction Waste Management Tracking 20,000 - 3,000 - - - 3,000 Cyber Security Program Development 1,050,000 - - - - - - Data Governance and Operational Analytics 495,000 - 125,000 75,000 60,000 50,000 310,000 Digital Information Network 6,025,584 87,000 150,000 - - - 237,000 Discovery Management Assessment 170,000 - - - - - - Enterprise Asset Management System 1,600,000 10,100 - - - - 10,100 Facility Monitoring and Analytics 100,000 - - - - - - Facility Security Master Plan 1,892,000 - 150,000 150,000 150,000 100,000 550,000 Fleet Telematics 175,916 - - - - - - Guest Traffic and Facility Usage Analytics 100,000 - - - - - - Live 911 66,380 - 60,000 - - - 60,000 Major Incident/Special Event Management System 20,000 - 5,000 - - - 5,000 Narcotic Safe Migration 15,000 - - - - - - Online Permitting/Electronic Reviews (E-Reviews)645,000 - 27,300 - - - 27,300 Outdoor Wireless Study 100,000 - - - - - - Police Records Management Migration 200,000 - 54,000 - - - 54,000 Professional Technical Services for Data Project Delivery 490,000 - - - - - - Remote Hold Pickup Locker 40,000 - 4,000 - - - 4,000 RFID Replacement 600,000 - - - - - - Risk Management Solution Assessment 40,000 - 4,000 - - - 4,000 Staff Managed Print 700,000 - (32,000) - - - (32,000) Station Alerting Equipment Replacement 500,000 - 50,000 - - - 50,000 Tightrope 35,000 - - - - - - Utility Billing Portal 90,000 - - - - - - Virtual Reality (VR) Training 75,000 - 1,300 - - - 1,300 26,851,080$ 237,100$ 663,600$ 251,000$ 210,000$ 150,000$ 1,511,700$ * Listing only includes projects with expected changes in operational budget requirements. If listed with a zero amount, staff have not been able to determine that amount with the current information. H-32 FISCAL YEAR 2024 -2 5 ROADMAP H-33 FIVE-YEAR ROADMAP St r a t e g i c D i g i t a l T r a n s f o r m a t i o n I n v e s t m e n t P r o g r a m - 5 - Y e a r R o a d m a p Le g e n d : In p r o g r e s s Ap p r o v e d Ev a l u a t i n g On g o i n g Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Co n s o l i d a t i o n & R e p l a c e m e n t o f C o r e S y s t e m s Dig i t a l I n f o r m a t i o n N e t w o r k En t e r p r i s e A s s e t M a n a g e m e n t S y s t e m Fle e t T e l e m a t i c s St a f f M a n a g e d P r i n t Uti l i t y B i l l i n g P o r t a l PC I C o m p l i a n c e Ris k M a n a g e m e n t A s s e s s m e n t RF I D R e p l a c e m e n t St a t i o n A l e r t i n g E q u i p m e n t R e p l a c e m e n t Tig h t r o p e AI A s s e s s m e n t Tra n s i t i o n t o a S i n g l e I d e n t i t y f o r U s e r s o f C i t y S e r v i c e s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Bu s i n e s s P r o c e s s A u t o m a t i o n Da t a G o v e r n a n c e a n d Op e r a t i o n a l An a l y t i c s Dis c o v e r y M a n a g e m e n t Pr o f e s s i o n a l T e c h n i c a l S e r v i c e s f o r D a t a P r o j e c t D e l i v e r y Fa c i t l i t y M o n i t o r i n g a n d M a n a g e m e n t Gu e s t T r a f f i c a n d F a c i l i t y U s a g e A n a l y t i c s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Au d i o V i s u a l U p g r a d e s Ou t d o o r W i r e l e s s S t u d y Ap p r o v e d - h a s b e e n f u l l y a p p r o v e d b u t w o r k h a s n o t s t a r t e d FY 2 0 2 5 - 2 6 FY 2 0 2 5 - 2 6 FY 2 0 2 6 - 2 7 FY 2 0 2 6 - 2 7 FY 2 0 2 6 - 2 7 FY 2 0 2 8 - 2 9 FY 2 0 2 8 - 2 9 FY 2 0 2 8 - 2 9 In p r o g r e s s - h a s b e e n f u l l y a p p r o v e d a n d w o r k h a s s t a r t e d FY 2 0 2 4 - 2 5 FY 2 0 2 7 - 2 8 FY 2 0 2 7 - 2 8 FY 2 0 2 7 - 2 8 Pr i o r Y e a r s FY 2 0 2 4 - 2 5 FY 2 0 2 4 - 2 5 Pr i o r Y e a r s Pr i o r Y e a r s FY 2 0 2 5 - 2 6 Fo s t e r a V i b r a n t C i v i c En g a g e m e n t C u l t u r e Ev a l u a t i n g - s t a f f i s c u r r e n t l y s t u d y i n g m e r i t a n d c o s t o f i n i t i a t i v e / p r o j e c t On g o i n g - a n n u a l p r o c e s s IN I T I A T I V E S GO A L GO A L Bu i l d C a p a c i t y f o r D a t a - dr i v e n D e c i s i o n M a k i n g GO A L Pu r s u e C o m m u n i t y W i d e Di g i t a l T r a n s f o r m a t i o n IN I T I A T I V E S IN I T I A T I V E S H-34 FIVE-YEAR ROADMAP (continued) St r a t e g i c D i g i t a l T r a n s f o r m a t i o n I n v e s t m e n t P r o g r a m - 5 - Y e a r R o a d m a p Le g e n d : In p r o g r e s s App r o v e d Ev a l u a t i n g On g o i n g Q1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Civ i c E n g a g e m e n t w i t h O p e n D a t a On l i n e P e r m i t t i n g / E l e c t r o n i c R e v i e w s ( E - R e v i e w ) Ex p a n s i o n o f Y a r d i Pa t r o n P r i n t / C o p y / P C M a n a g e m e n t Re c o r d s D i g i t i z a t i o n Re m o t e H o l d P i c k u p L o c k e r Q1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 An n u a l H a r d w a r e a n d I n f r a s t r u c t u r e R e p l a c e m e n t Cit y w i d e V a l i d a t e d I D F i l e T r a n s f e r Co m p u t e r A i d e d D i s p a t c h ( C A D ) Cy b e r S e c u r i t y P r o g r a m D e v e l o p m e n t Li v e 9 1 1 Fa c i l i t y S e c u r i t y M a s t e r P l a n Tra f f i c M a n a g e m e n t F u n c t i o n a l i t y E n h a n c e m e n t En s u r e A d o p t i o n o f R e l e v a n t N e w T e c h n o l o g i e s a r e M i r r o r e d i n t o E O C Bil l i a r d s R o o m M e m b e r s h i p I n f r a s t r u c t u r e Co n s t r u c t i o n W a s t e M a n a g e m e n t Na r c o t i c s S a f e M i g r a t i o n Vi r t u a l R e a l i t y T r a i n i n g Co m m a n d C e n t r a l A / V I n f r a s t r u c t u r e Ma j o r I n c i d e n t / S p e c i a l E v e n t M a n a g e m e n t Po l i c e R e c o r d s M a n a g e m e n t M i g r a t i o n Poli c e B o d y C a m e r a R e p l a c e m e n t Po l i c e I n - c a r V i d e o R e p l a c e m e n t Pr i o r Y e a r s In p r o g r e s s - h a s b e e n f u l l y a p p r o v e d a n d w o r k h a s s t a r t e d Ap p r o v e d - h a s b e e n f u l l y a p p r o v e d b u t w o r k h a s n o t s t a r t e d Ev a l u a t i n g - s t a f f i s c u r r e n t l y s t u d y i n g m e r i t a n d c o s t o f i n i t i a t i v e / p r o j e c t FY 2 0 2 4 - 2 5 FY 2 0 2 5 - 2 6 FY 2 0 2 6 - 2 7 En h a n c e A c c e s s i b i l i t y an d T r a n s p a r e n c y GO A L IN I T I A T I V E S Pr i o r Y e a r s FY 2 0 2 4 - 2 5 FY 2 0 2 5 - 2 6 FY 2 0 2 6 - 2 7 Pr o m o t e S a f e t y a n d Su s t a i n a b i l i t y t h r o u g h Co n n e c t i v i t y GO A L IN I T I A T I V E S On g o i n g - a n n u a l p r o c e s s FY 2 0 2 7 - 2 8 FY 2 0 2 8 - 2 9 FY 2 0 2 7 - 2 8 FY 2 0 2 8 - 2 9 I-1 CAPITAL IMPROVEMENT PROGRAM The City of Carlsbad Capital Improvement Program reflects the city’s ongoing commitment to maintaining the highest standards of quality facilities for our community today and in the future. It is a planning document, not a commitment for spending. The program outlines the expenditure plan for future capital projects and the corresponding revenues to pay for those expenditures. Projects that are shown in the CIP are generally defined as any construction, rehabilitation or replacement of major infrastructure such as streets, libraries, parks, fire stations and administrative facilities, water, sewer and drainage facilities, and other facilities that are located on or in the ground. In most cases, the total construction cost of each of these assets is recorded and tracked as part of the city’s inventory of capital infrastructure assets and other city-owned property. The CIP budget covers a five-year period. Once the City Council adopts the proposed annual CIP budget, projects receive an appropriation that authorizes spending in the amount specified for the adopted fiscal year only. Estimated budget information is shown for a 15-year period to provide the most comprehensive information about known future projects. Spending authority in future years is not granted until adoption of the annual proposed CIP budget associated with each year. INVESTING IN OUR QUALITY OF LIFE The City of Carlsbad’s philosophy is to take a proactive, long-range planning approach to building high quality facilities and infrastructure that support the needs and priorities of the community. Prudent financial planning has ensured ongoing funding to modernize, repair, and replace existing infrastructure projects through numerous asset management programs. Since the city applies a comprehensive asset management approach to infrastructure planning and budgeting it is able to avoid more costly unexpected repairs or operational needs and minimize the burden on emergency expenditures. As the city continues to grow and develop, there is a corresponding increase in the demand for development- related services and new facilities. To ensure that the necessary infrastructure and facilities are built on a schedule that meets or exceeds this demand, the citizens of Carlsbad adopted a Growth Management Plan in 1986. The plan was established to manage development within the city by linking residential, commercial, and industrial development directly to standards for availability of public services and facilities. I-2 The Growth Management Plan states that unless a standard level of facilities is available to meet new demands resulting from the city’s growth, development cannot proceed. Recently, certain actions, such as imposing a moratorium, have been determined to be impermissible by the California Housing and Community Development Department, per Senate Bill 330, Housing Crisis Act of 2019, which became effective on Jan. 1, 2020. The detailed level of planning required by Growth Management has allowed the city’s CIP to anticipate the funding needed for capital improvements in the next 15 years. Facilities such as community centers, parks and fire stations have been constructed and opened to the public under this program. The CIP has been designed to specifically address areas where new or expanded facilities will be needed to maintain compliance with the adopted performance standards. With the adoption of the fiscal year 2024-25 CIP, compliance with the Growth Management Plan is continued. In October 2022, City Council approved a five-year strategic plan with policy goals to reflect the most important priorities of the community. The CIP budget includes the priority construction projects identified the strategic plan. PROJECT EVALUATION Development of the CIP is a team effort involving all operational departments, the City Manager’s Office, the City Council, and the community. Community feedback on infrastructure needs is considered and incorporated as appropriate. The CIP is fully vetted at multiple levels of the city organization by appropriate staff using an inclusive and transparent process and reviewed on a quarterly basis. Projects were evaluated for the ability to deliver realistic outcomes considering anticipated revenue decreases in some capital funding sources. The city remains focused on matching existing resources with reasonable and achievable project schedules while continuing to work on projects that are already underway. Existing project balances were evaluated to determine whether additional funding was needed or if the existing balances were adequate. Funding recommendations were matched against project timing and balanced against available funding sources. As the CIP is implemented throughout the year, staff continually re-evaluate projects’ scopes, costs and schedules to responsibly and cost-effectively manage infrastructure assets at the required levels Capital Improvement Program Public health and safety City mission, vision and organizational values Community values Environmental review Governing and policy documents Funding availability City Council goals I-3 of service throughout their lifecycle. Recommendations for project funding consider current project status, project scheduling and sequencing requirements, project constraints, and current staff capacity. Project charters are updated to include project description, location, summary of need, justification including any legislative or policy citations, cost estimates, and project scores. FISCAL YEAR 2024-25 APPROPRIATIONS The CIP is organized by the following project categories: The five-year CIP budget is based on project phase for Strategic Plan and Critical Need projects. This means rather than budgeting for the entire cost of a project well in advance of when the project is scheduled to begin, the City Council will be asked to consider appropriating money phase by phase. Phases include scoping (which includes feasibility studies and needs assessment), conceptual design (which includes environmental permitting and up to 30% preliminary engineering/design completion), final design (which includes 100% engineering/design completion and final engineer’s estimate) and construction. For example, as part of the annual budget process, city staff will request appropriations for a new project, starting with initial scoping. This typically involves early planning work and a feasibility analysis. When that work is completed, staff will return to the City Council to request appropriation for conceptual design. When that is done, staff will return to the City Council to request funding for final design, and so on. Once plans and specifications for a project have been prepared, a more accurate engineer’s estimate for construction costs can be produced that considers the most up-to-date market conditions. By Strategic Plan •Priority projects Critical Need •Regulatory •Health & safety Maintenance •Annual Allocation •Enterprise •Drainage Closeout •In service •Warranty •Monitoring I-4 requesting appropriation of construction funding at the time staff request approval of plans and specifications and authorization to bid, the city can ensure that the approved project budget will align with the most accurate and timely cost estimates available. The 15-year forecast will assist the City Council with making informed decisions regarding the city’s ability to fund current and future projects. In the fiscal year 2024-25 CIP, there are approximately 197 continuing and new projects planned over the next 5 years. The fiscal year 2024-25 CIP outlines $15.6 million in new appropriations to provide additional funding for the continuation of existing projects as well as funding for 13 new projects. Projected revenues during the same fiscal year are estimated at $93 million. FY25 -40 -20 0 20 40 Millions FY 2024-25 Appropriations by Budget Category Strategic Plan Critical Need Maintenance I-5 Fiscal year 2024-25 appropriations by project type Civic Buildings and Facility Maintenance -$24.6 million This category includes a variety of facilities such as fire stations, libraries and community centers. Costs include repair, maintenance and replacement of civic buildings and other operational facilities. (Note: due to changes in estimated construction dates for the Orion Center project the net appropriations for this category in fiscal year 2024-25 are negative.) Parks $5.5 million Projects include improvements and enhancements to existing parks, such as playground resurfacing, picnic areas and other needs identified by the community and in recently updated parks master plans. Drainage $7 million The city’s drainage infrastructure plays an important role in handling storm water runoff flows, as well as maintaining the water quality of the city’s creeks, lagoons and ocean. As the city continues to age, it is increasingly necessary to balance repairing and replacing the existing lines with enhancing the current infrastructure to accommodate future needs. Sewer $19.5 million The city’s sewer, or wastewater, projects include numerous pipeline construction and rehabilitation projects, as well as improvements to the Encina Wastewater Treatment facility. Most new lines are built and paid for with impact fees collected with new development. Water and Recycled Water $793 thousand Future water and recycled water projects include construction of new pipelines, replacement of existing waterlines and reservoir improvements. The Carlsbad Municipal Water District has been producing and delivering recycled water for over 30 years. Transportation $7.4 million People of all ages and abilities want to go places safely and conveniently in Carlsbad, whether they drive, walk, bike, or ride a bus or train. The city continues to invest in modernizing roads, leveraging technology to improve traffic systems, and making timely repairs and rehabilitation of the roadways, bridges, sidewalks and other assets in public rights of way throughout the city. I-6 NEW CAPITAL IMPROVEMENT PROJECTS Grant Funded Project Description FY25 Appropriation District Paseo Del Norte Pedestrian and Bike Improvements Enhance pedestrian and bike safety on Paseo Del Norte between Palomar Airport Road and Sea Gate Rd by reducing the number of travel lanes from four to two, adding bike buffers, widening bike lanes and adding an uncontrolled crosswalk in the vicinity of Tip- Top Meats and Motel 6. $600,000, funded in part through Caltrans local Highway Safety Improvement Program 3 Schools Traffic Safety Program Install high-visibility crosswalks and speed cushions near schools. $1,100,000, funded in part through a federal grant All Maintenance Projects Project Description FY25 Appropriation District Carlsbad Water Recycling Facility Improvements Feasibility study to evaluate best available technologies for future equipment upgrades and forecasted recycled water demands in the event of reduced supply from alternative sources. $350,000 3 Carlsbad Municipal Water District Building and Site Improvements Interior and exterior building, warehouse and site improvements for storage, site security, charging station for electric vehicle and forklift, paving for materials storage and electric forklift operation, restroom, locker room, drinking fountain, and remodel of interior finishes. $600,000 2 Downtown Tile Replacement Sidewalk tiles are antiquated, damaged or broken and are detaching in multiple locations, causing potential tripping hazards and safety concerns. $250,000 1 Fire Station 5 Renovation Replace roof, renovate kitchen, exterior finishes, remodel bathrooms, replace apparatus bay door and remove epoxy flooring, interior and exterior finishes. $150,000 2 Flower Fields Overlook Sidewalk Replacement Aging trees are lifting sidewalk in multiple areas causing tripping hazards and safety concerns throughout the entire walkway along Armada Drive. The area is a high foot traffic walkway and is a high tourism location. $250,000 2 I-7 Project Description FY25 Appropriation District Green Paint Maintenance Green paint maintenance is expected to range from annual to bi-annual service per location, depending on the paint lifespan. Green paint lifespan is dramatically lower than other intersection paint due to the frequency of turning and slowing vehicles, degrading the paint. Green paint locations are projected to grow exponentially as the city strives to promote safe routes to school and continue implementing paint upgrades to our roadways. $250,000 All La Costa Avenue Box Culvert Cleaning Remove all debris and sediment build up, jet and vacuum the culvert, and dispose of material. $275,000 4 Magee Park Building Restoration Perform select restoration work to several of the buildings in the park as identified in the condition assessment $200,000 1 Parks Maintenance Program Annual program will address ongoing maintenance and infrastructure needs for parks and recreation. $644,000 for scoping, conceptual and final design; $1,503,00 for construction All Police and Fire Headquarters Parking Lot and Exterior Improvements Secure the northeasterly 24 parking spots of the parking lot between the PFHQ and Skate Park and create access improvements to the southeasterly access point of the PFHQ building. Install fencing, improved lighting, secured access and hardscape improvements. $120,000 2 Synthetic Turf Replacement Replace synthetic turf fields that have reached the end of their useful life. $1,800,000 for Poinsettia Park. Replacements at Alga Norte, Aviara planned in FY26; Pine Avenue Park planned for FY27 1, 2, 3 I-8 CAPITAL IMPROVEMENT PROGRAM REVENUES Over the next 15 years, revenues for capital projects are estimated at $909.5 million and are segregated into six major funding sources: (1) fees generated by development in the City of Carlsbad, (2) special district fees and taxes from the community facilities districts and bridge and thoroughfare benefit districts, (3) water and wastewater replacement funds, (4) infrastructure replacement funds other than wastewater and water, (5) general capital construction funds, and (6) other sources, including grants, sales taxes and contributions from other agencies. Approximately 27.3% of all capital revenue is received as a result of development, including developer fees and financing districts in the chart above, and is dependent upon assumptions made about the city's annual growth in dwelling units and commercial and industrial square feet. These revenues include Public Facilities Fees, Traffic Impact Fees, Park-In-Lieu Fees, Planned Local Drainage Fees, water connection fees, sewer connection charges, and community facilities districts and bridge and thoroughfare benefit districts fees. Water and wastewater replacement revenues generated by user fees equal approximately 31.6% of total revenues and are used to pay for replacement of existing water and sewer facilities. Infrastructure Replacement and General Capital Construction revenues, equal to 19.7%, are transfers from the city’s General Fund, which are being set aside to pay for replacement of major capital facilities other than wastewater and water facilities and the construction of various municipal projects. The remaining 21.5% consists of revenues from other agencies and include federal and state grants, the county sales tax program TransNet, gas taxes, and contributions or reimbursements from cities, developers, and other agencies. Developer Fees, 23.6% Financing Districts, 3.6% Utility Replacement Transfers, 31.6%Infrastructure Replacement Transfers, 9.1% General Capital Construction Transfers, 10.6% Other Agencies, 21.5% Capital Improvement Program Projected Revenues FY 2024-25 to FY 2038-39 $909.5 million I-9 FUTURE GROWTH AND DEVELOPMENT As shown on the graph on the previous page, there are a variety of revenues that are used to fund the capital projects. In order to estimate revenues to be received from development, several assumptions about the rate and type of future development are made. These assumptions can change from year to year and tend to correlate with the current economic climate. Every year, city staff evaluates all existing and future private development projects and compares this information to the capacity of the city using the most current adopted general plans. Information about existing development activity combined with estimates of how remaining net developable land might develop is then summarized to prepare future projections about when and where residential and non-residential development may occur. The following table shows the number of residential units and non-residential square feet of development that was used in calculating estimated revenues for fiscal year 2024-25 and subsequent years to build out. Projected Future Development Financial forecasting schedules are prepared to ensure that funding will be sufficient and available for construction of capital projects as planned in the CIP. In addition to evaluating whether or not capital funds are sufficient, significant operating cost impacts and availability of staff resources are also considered in evaluating the timing of projects. Where funding discrepancies occur, alternative financing methods and project timing are evaluated, and recommendations are made to resolve the discrepancies. Conservatively, about 6,044 residential units are anticipated for future development, and it is currently estimated that the city is more than 90% built out. Residential development for fiscal year 2024-25 is projected at 267 units, and, over the next five years, should average 432 units per year. The amount of non-residential development is projected at about 268,000 square feet over the next five years. Projects include several multi-family residential developments, commercial industrial, office and other mixed-use projects. Development estimates provide data for estimating future fee revenues, which are calculated by multiplying each applicable development fee by the estimated number of dwelling units and/or square feet of construction expected during each year. Fiscal Year Residential Units Non-Residential Square Feet 2024-25 267 19,927 2025-26 833 161,603 2026-27 328 50,629 2027-28 278 20,629 2028-29 452 14,926 2029-34 1,299 740,016 2035-build out 2,587 2,104,038 Totals 6,044 3,111,768 I-10 FUTURE PROJECTS Long-range planning and responsible asset management play key roles in the development of future capital projects. Using data from various infrastructure master plans, ongoing asset condition assessments, technical modelling, field inspections as well as community feedback, the information provided for future years reflects the most comprehensive snapshot of known or anticipated future projects as well as associated estimated costs. Future costs for projects forecast in fiscal year 2029-30 to fiscal year 2038-39 are estimated at approximately $538 million. Civic, 19% Drainage, 11% Parks, 4% Recycled Water, 2% Sewer, 28% Traffic System, 0% Transportation, 21% Water, 15% Future Project Costs by Type FY 2029-30 to FY 2038-39 $538 million I-11 CALCULATION OF FUTURE FEES The revenue projections in the CIP reflect the growth assumptions identified in the previous section. The following information delineates how those assumptions were applied to estimate future development revenues. The mix of future multi-family and single-family residential units is assumed to be 90% and 10%, respectively, and reflects the anticipated mix of residential development for each Local Facilities Management Zone. To calculate estimated revenues for Traffic Impact Fees, the number of average daily trips was computed for each type of development use. An attached multi-family residential dwelling unit is assigned eight trips and a detached single-family unit is assigned 10 trips per day. The trips-per-day value for commercial and industrial buildings are 40 and eight trips per 1,000 square feet of development, respectively, although the actual volume of trips generated by commercial and industrial buildings can vary widely depending on the ultimate land use. CFD No. 1 is a citywide district established to finance various civic facilities required under the city’s Growth Management Plan. Park-in-Lieu Fees are collected for the purchase and development of parkland within each quadrant of the city, and the fees are based on the acquisition cost of parkland. Projects in the CIP funded with Park-in-Lieu Fees include future park site acquisition, development and restoration. UNFUNDED PROJECTS The CIP includes several projects for which there is no identifiable funding source for future construction and, in some cases, where only partial funding has been identified. The city will investigate obtaining possible external funding, such as federal and state grants, loans, or other financing sources. Once funding is identified for these projects, the project costs will be reviewed and updated to reflect actual cost estimates. Projects on this list are part of the City Council’s Five Year Strategic Plan or were identified by Council direction. Two projects are partially funded by the Traffic Impact Fee program. The program was planned to generate enough revenue to pay for 20% of the total costs of these projects, leaving the remaining 80% unfunded. Business Park Recreational Facility (Partial funding/Park Fee Zones 5, 13, 16, 17, 18) $11,917,235 Cannon Lake Park (6.7 acres) 2,243,000 Carlsbad Boulevard Realignment – Manzano Drive to Island Way (Partial funding/TIF) 63,387,000 Chestnut Complete Street I-5 to Railroad 2,500,000 College Boulevard Extension 30,000,000 Fire Station 7 19,000,000 Maerkle Solar Project 50,000,000 Monroe Street Pool Renovation/Replacement 25,500,000 Orion Complex Energy Storage 10,000,000 South Carlsbad Boulevard Realignment (Partial funding/TIF) 5,000,000 I-12 PROJECTED FUND BALANCES FOR FISCAL YEAR 2023-24 July 1, 2023 Projected June 30, 2024 Unreserved Projected Projected Debt Service Projected Fund Balance Revenues Expenditures Loans & Other Balance BTD#2 - Poinsettia Lane/Aviara Pkwy 1,426,548$ 45,759$ -$ - 1,472,307$ BTD#3 - Cannon Road West 535,136 12,730 -$ - 547,866 CFD #1 - Citywide 99,836,822 7,442,487 2,018,187 110,000$ 105,151,122 Gas Tax 14,732,298 3,508,516 4,645,141 - 13,595,673 Gas Tax (Road Maint. & Rehab Acct.)4,165,566 2,824,483 5,980,734 - 1,009,315 General Capital Const.38,509,731 12,628,670 6,112,453 - 45,025,948 Grants - Federal 3,224 8,000,000 1,165 - 8,002,059 Grants - State 21,982 7,249,989 2,249,989 - 5,021,982 Infrastructure Replacement 117,165,781 6,984,046 13,253,615 - 110,896,212 Other 2,048,272 58,863 959,647 - 1,147,488 Park Fee Zones 5,13,16, 17, 18 4,977,874 219,790 - - 5,197,664 Park-In-Lieu NE 4,816,469 112,544 654,304 - 4,274,709 Park-In-Lieu NW 2,620,200 1,698,075 1,101,363 - 3,216,912 Park-In-Lieu SE 1,787,398 323,044 46,255 - 2,064,187 Park-In-Lieu SW 1,149,918 1,254,180 - - 2,404,098 Planned Local Drainage Area A 1,086,314 31,114 30,632 - 1,086,796 Planned Local Drainage Area B 1,476,161 259,423 32,567 - 1,703,017 Planned Local Drainage Area C 1,687,795 63,117 29,807 - 1,721,105 Planned Local Drainage Area D 750,075 138,947 37,667 - 851,354 Public Facilities Fee 29,587,747 3,657,017 319,106 - 32,925,658 Sewer Connection 6,187,536 684,035 131,181 - 6,740,389 Sewer Replacement 18,203,374 10,512,237 8,869,773 - 19,845,838 Traffic Impact Fee 20,688,628 2,258,481 4,507,832 - 18,439,277 Transnet/Local 35,714,877 5,869,160 6,871,503 - 34,712,534 Water - Potable 37,499,302 1,504,953 10,790 - 38,993,465 Water - Recycled (9,485,067) 2,592,817 6,929,348 - (13,821,598) Water Replacement - Potable 64,227,039 6,586,067 14,989,111 - 55,823,995 Water Replacement - Recycled 18,694,351 434,932 1,010,114 - 18,119,169 Total 520,115,352$ 86,955,476$ 80,792,287$ 110,000$ 526,168,541$ I-13 PROJECTED FUND BALANCES FOR FISCAL YEAR 2024-25 July 1, 2024 June 30, 2024 July 01, 2024 2024-25 June 30, 2025 Projected Estimated Continuing New Total Projected Fund Balance Revenues Appropriations Appropriations Appropriations Balance BTD#2 - Poinsettia Lane/Aviara Pkwy 1,472,307$ - 383,035$ - 383,035$ 1,089,272$ BTD#3 - Cannon Road West 547,866 - - - - 547,866 CFD #1 - Citywide 105,151,122 2,125,151$ 68,731,658 (25,490,000)$ 43,241,658 64,034,614 Gas Tax 13,595,673 3,186,643 13,416,722 (2,157,352) 11,259,370 5,522,945 Gas Tax (Road Maint. & Rehab Acct.)1,009,315 2,935,648 906,683 3,030,000 3,936,683 8,280 General Capital Const.45,025,948 18,579,226 31,121,093 (1,668,431) 29,452,662 34,152,512 Grants - Federal 8,002,059 1,911,801 9,060,636 850,000 9,910,636 3,224 Grants - State 5,021,982 534,510 5,000,000 534,510 5,534,510 21,982 Infrastructure Replacement 110,896,212 4,979,226 32,908,525 14,117,345 47,025,870 68,849,568 Other 1,147,488 - 323,489 (323,489) 0 1,147,488 Park Fee Zones 5,13,16, 17, 18 5,197,664 2,000 - - - 5,199,664 Park-In-Lieu NE 4,274,709 - 349,317 425,000 774,317 3,500,392 Park-In-Lieu NW 3,216,912 1,642,816 3,253,072 1,403,000 4,656,072 203,656 Park-In-Lieu SE 2,064,187 313,432 547,121 - 547,121 1,830,498 Park-In-Lieu SW 2,404,098 929,488 219,562 - 219,562 3,114,024 Planned Local Drainage Area A 1,086,796 - 40,614 - 40,614 1,046,182 Planned Local Drainage Area B 1,703,017 158,391 18,706 - 18,706 1,842,702 Planned Local Drainage Area C 1,721,105 68,655 102,376 - 102,376 1,687,384 Planned Local Drainage Area D 851,354 20,442 18,397 - 18,397 853,399 Public Facilities Fee 32,925,658 1,959,790 4,611,030 - 4,611,030 30,274,418 Sewer Connection 6,740,389 634,863 5,497,842 2,016,000 7,513,842 (138,590) Sewer Replacement 19,845,838 20,571,241 26,954,935 16,498,515 43,453,450 (3,036,370) Traffic Impact Fee 18,439,277 2,885,562 18,371,699 (1,374,187) 16,997,512 4,327,327 Transnet/Local 34,712,534 5,849,095 27,459,537 6,635,126 34,094,663 6,466,966 Water - Potable 38,993,465 1,826,697 12,081,605 (8,208,000) 3,873,605 36,946,558 Water - Recycled (13,821,598) 15,387,825 1,157,044 350,000 1,507,044 59,182 Water Replacement - Potable 55,823,995 6,659,237 38,948,577 6,175,667 45,124,244 17,358,987 Water Replacement - Recycled 18,119,169 - 4,755,558 2,791,013 7,546,571 10,572,599 Total 526,168,541$ 93,161,738$ 306,238,833$ 15,604,717$ 321,843,550$ 297,486,729$ I-14 REVENUE PROJECTIONS SCHEDULE 2020-21 2021-22 2022-23 2023-24 2024-25 Actual Actual Actual Projected Estimated Fund Revenue Revenue Revenue Revenue Revenue BTD#2 - Poinsettia Lane/Aviara Pkwy 22,020$ (497,154)$ 2,800,034$ 45,759$ - BTD#3 - Cannon Road West 949 (21,419) 5,526 12,730 - CFD #1 - Citywide 2,286,479 (2,303,139) 2,869,873 7,442,487 2,125,151$ Gas Tax 2,733,074 2,195,851 3,047,442 3,508,516 3,186,643 Gas Tax (Road Maint. & Rehab Acct.)2,149,734 2,080,454 2,744,950 2,824,483 2,935,648 General Capital Const.4,654,470 13,296,442 4,268,091 12,628,670 18,579,226 Grants - Federal 256,529 34,140 39,772 8,000,000 1,911,801 Grants - State - - 21,982 7,249,989 534,510 Infrastructure Replacement 4,704,670 (4,498,884) 5,386,482 6,984,046 4,979,226 Other 4,643 (98,987) 36,564 58,863 - Park Fee Zones 5,13,16, 17, 18 78,182 (195,275) 144,419 219,790 2,000 Park-In-Lieu NE 451,497 (92,752) 50,477 112,544 - Park-In-Lieu NW 429,037 267,635 150,878 1,698,075 1,642,816 Park-In-Lieu SE 3,205 (55,340) 19,848 323,044 313,432 Park-In-Lieu SW 319,862 13,108 319,222 1,254,180 929,488 Planned Local Drainage Area A 27,489 (20,032) 100,215 31,114 - Planned Local Drainage Area B 635,853 54,137 188,568 259,423 158,391 Planned Local Drainage Area C 2,779 (36,025) 89,879 63,117 68,655 Planned Local Drainage Area D 2,877 (12,992) 82,860 138,947 20,442 Public Facilities Fee 1,751,477 (556,423) 1,581,967 3,657,017 1,959,790 Sewer Connection 332,049 (159,776) 1,861,377 684,035 634,863 Sewer Replacement 4,390,568 3,959,756 5,394,289 10,512,237 20,571,241 Traffic Impact Fee 1,084,181 (399,069) 1,907,630 2,258,481 2,885,562 Transnet/Local 3,347,237 2,215,348 1,556,262 5,869,160 5,849,095 Water - Potable 713,234 (1,309,185) 793,135 1,504,953 1,826,697 Water - Recycled 59,190 - 1,590,853 2,592,817 15,387,825 Water Replacement - Potable 6,378,189 1,734,930 5,334,988 6,586,067 6,659,237 Water Replacement - Recycled 1,083,332 726,017 1,107,565 434,932 - Total 58,741,652$ 37,901,545$ 43,495,147$ 86,955,476$ 93,161,738$ I-15 BUDGET EXPENDITURE SCHEDULE 2021-22 2022-23 2023-24 2024-25 2024-25 2024-25 Actual Actual Estimated Continuing New Total FUND Expense Expense Expense Appropriations Appropriations Appropriations BTD#2 - Poinsettia Lane/Aviara Pkwy 13,059,041.00 57,041$ -$ 383,035$ - 383,035$ BTD#3 - Cannon Road West - - - - - - CFD #1 - Citywide 583,318$ 962,730 2,128,187 68,731,658 (25,490,000)$ 43,241,658 Gas Tax 2,595,882 1,984,349 4,645,141 13,416,722 (2,157,352) 11,259,370 Gas Tax (Road Maint. & Rehab Acct.)307,543 5,045,379 5,980,734 906,683 3,030,000 3,936,683 General Capital Const.12,606,427 10,306,345 6,112,453 31,121,093 (1,668,431) 29,452,662 Grants - Federal 26,669 49,535 1,165 9,060,636 850,000 9,910,636 Grants - State - 117,611 2,249,989 5,000,000 534,510 5,534,510 Infrastructure Replacement 6,701,080 7,293,771 13,253,615 32,908,525 14,117,345 47,025,870 Other 2,587 1,015,672 959,647 323,489 (323,489) 0 Park Fee Zones 5,13,16, 17, 18 - - - - - - Park-In-Lieu NE - 34,379 654,304 349,317 425,000 774,317 Park-In-Lieu NW - 130,121 1,101,363 3,253,072 1,403,000 4,656,072 Park-In-Lieu SE 1,196 25,429 46,255 547,121 - 547,121 Park-In-Lieu SW - - - 219,562 - 219,562 Planned Local Drainage Area A 1,149 26,547 30,632 40,614 - 40,614 Planned Local Drainage Area B 77,250 252,941 32,567 18,706 - 18,706 Planned Local Drainage Area C 2,913 5,979 29,807 102,376 - 102,376 Planned Local Drainage Area D 12,358 7,130 37,667 18,397 - 18,397 Public Facilities Fee 2,635,240 1,304,479 319,106 4,611,030 - 4,611,030 Sewer Connection 611,405 3,031,587 131,181 5,497,842 2,016,000 7,513,842 Sewer Replacement 6,944,820 6,529,066 8,869,773 26,954,935 16,498,515 43,453,450 Traffic Impact Fee 2,806,082 1,903,324 4,507,832 18,371,699 (1,374,187) 16,997,512 Transnet/Local 1,922,954 3,256,939 6,871,503 27,459,537 6,635,126 34,094,663 Water - Potable 432,625 134,627 10,790 12,081,605 (8,208,000) 3,873,605 Water - Recycled 127,177 224,112 6,929,348 1,157,044 350,000 1,507,044 Water Replacement - Potable 1,467,222 2,223,068 14,989,111 38,948,577 6,175,667 45,124,244 Water Replacement - Recycled 2,531,036 400,567 1,010,114 4,755,558 2,791,013 7,546,571 Total 55,455,974$ 46,322,727$ 80,902,287$ 306,238,833$ 15,604,717$ 321,843,550$ I-16 PROJECT ESTIMATED OPERATIONAL REQUIREMENTS The projects listed in the table below represent projects that have been determined will have or may have operating budget impacts within the next five fiscal years. Estimated impacts to operating budget are based on industry standards. Projects that have an estimated zero dollar impact on the city’s operating budget are not listed below. As the fiscal years identified in the table become the next budgeting year the associated appropriate department will make a request for additional operating budget. Project Department Operating fiscal year Estimated annual cost Beach Access Repair and Upgrades – Pine to Tamarack Transportation 2025-26 $32,445 Barrio Street Lighting Transportation 2026-27 $19,879 Orion Center Facilities 2026-27 $695,044 Village Decorative Lighting – State Street, Madison, Roosevelt, and Washington Transportation 2026-27 $13,905 I-17 FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM STRATEGIC PLAN PROJECTS 🔎🔎 Scoping ☐ Preliminary Design ☑ Final Design ♦ Construction (forecasted amounts; not appropriated in the budget process) New projects in italics Project ID District Type Project Name Prior Appropriation Requested 2024-25 Estimated 2025-26 Estimated 2026-27 Estimated 2027-28 Estimated 2028-29 Estimated 5-Year Total 6065 1 ADA Beach Access - Pine to Tamarack $375,000 ☑ $375,000 - ♦ $10,000,000 - - $10,750,000 6004 2,3 Avenida Encinas Coastal Rail Trail and Pedestrian Improvements $6,953,903 ♦ $3,000,000 - - - - $9,953,903 4013 1 Barrio Street Lighting $4,470,000 - ♦ $1,030,000 - - - $5,500,000 3896 1 Beach Access Repair and Upgrades - Pine Avenue to Tamarack $13,511,750 ♦ $2,500,000 - - - - $16,011,750 201904 2 Business Park Recreational Facility (Partial Funding) (Zone 5 Park) - - 🔎🔎 $1,500,000 - - - $1,500,000 6325 4 Camino De Los Coches and La Costa Avenue Intersection Control $350,000 - ♦ $2,000,000 - - - $2,350,000 6058 1 Carlsbad Boulevard and Tamarack Avenue Intersection Improvement $2,825,000 - - ☑ $300,000 ♦ $15,600,000 - $18,725,000 6097 1 Carlsbad Boulevard Pedestrian Improvement Project $1,647,488 - - - - - $1,647,488 201908 2 Carlsbad Boulevard Realignment - Manzano Drive to Island Way - 🔎🔎 $1,000,000 ☐ $1,000,000 - - - $2,000,000 201909 2 Carlsbad Boulevard Realignment - Manzano Drive to Island Way (RTCIP) - - - - - - $0 6069 1 Chestnut Complete Street I-5 to Railroad Project Study $85,000 ($85,000) - - - 🔎🔎 $250,000 $250,000 4008 Citywide City Hall Complex & Cole Library Replacement $1,028,105 - - - - ☐ $15,500,000 $16,528,105 6072 2 El Camino Real Widening - Poinsettia Lane to Camino Vida Roble $4,595,000 - - - - - $4,595,000 6051 4 El Camino Real Widening - Arenal Road to La Costa Avenue $8,700,000 - ♦ $2,000,000 - - - $10,700,000 6094 2 El Camino Real Widening - Sunny Creek to Jackspar $5,010,000 ♦ $600,000 - - - - $5,610,000 4093 2 Fire Station 7 $100,000 - - - - - $100,000 4714 2 Fleet Maintenance Refurbishment $3,470,100 ♦ $4,700,000 - - - - $8,170,100 4061 1 Grand Avenue Promenade $300,000 - - - - - $300,000 6075 1 Kelly Drive and Park Drive Complete Street Improvements $5,803,000 - ♦ $2,500,000 - - - $8,303,000 6076 4 La Costa Avenue Traffic Improvements $121,300 ($108,842) - - - - $12,458 4722 2 Maerkle Reservoir Solar Project $249,170 ☐ $232,000 - - - - $481,170 6034 2 Melrose Drive Right Turn Lane to West Bound Palomar Airport Road $911,000 ($728,286) ☑ $50,000 ♦ $100,000 - - $332,714 4724 1 Monroe Street Pool Replacement $4,810,764 - - - - - $4,810,764 3572 2 Orion Center $36,258,159 ☑ ($26,220,305) ♦ $46,150,000 - - - $56,187,854 6611 1 Park Drive Street and Drainage Improvement $5,082,439 - - - - - $5,082,439 4612 2,4 Pickleball Courts $300,000 ♦ $2,100,000 - - - - $2,400,000 4715 2 Police and Fire Headquarters Renovation $27,714,840 - - - - - $27,714,840 3801 2 Robertson Ranch Park Development (Partial Funding) $1,038,000 ☐ $425,000 - - - - $1,463,000 4753 3 Schulman Auditorium and Cannon Art Gallery $1,650,000 - - - - - $1,650,000 6031 2,3,4 South Carlsbad Coastline $2,779,026 ($1,074,321) - - - - $1,704,705 4611 4 Stagecoach Community Park Community Gardens $620,000 - - - - - $620,000 6082 1 State Street and Grand Avenue Road Improvements - - - - - ♦ $325,000 $325,000 4090 1 State Street Parking Lot Electric Vehicle Charging Stations $340,000 ♦ $150,000 - - - - $490,000 6104 Citywide Sustainable Mobility Plan Implementation Program $710,566 - - - - - $710,566 I-18 STRATEGIC PLAN PROJECTS (CONTINUED) 🔎🔎 Scoping ☐ Preliminary Design ☑ Final Design ♦ Construction (forecasted amounts; not appropriated in the budget process) New projects in italics Project ID District Type Project Name Prior Appropriation Requested 2024-25 Estimated 2025-26 Estimated 2026-27 Estimated 2027-28 Estimated 2028-29 Estimated 5-Year Total 6054 2 Terramar Area Coastal Improvements $12,100,000 - ♦ $7,200,000 - - - $19,300,000 6070 Citywide Traffic Improvement Program $3,388,000 ☑ $400,000 ☑ $400,000 ☑ $400,000 ☑ $400,000 ☑ $400,000 $5,388,000 6332 4 Traffic Signal - Maverick Way and Camino De Los Coches $490,000 ♦ $450,000 - - - - $940,000 6626 Citywide Trash Amendment Compliance Program $3,150,000 ♦ $1,350,000 ☑ $500,000 ♦ $2,585,000 ☑ $655,000 ♦ $3,077,000 $11,317,000 6103 1 Tyler Street Traffic Circulation $970,000 - - - - - $970,000 6083 Citywide Utility Undergrounding Program - Study - - - - - $0 6019 1 Valley and Magnolia Complete Streets $5,058,206 ♦ $3,650,000 - - - - $8,708,206 201974 1 Valley Street Traffic Calming - - - - - ☑ $300,000 $300,000 4609 Citywide Veteran's Memorial Park (All Quadrants) $49,711,450 ♦ $5,800,000 - - - - $55,511,450 4015 1 Village and Barrio Traffic Circles $10,259,000 ♦ $1,825,000 ($4,000,000) - - - - $8,084,000 6089 1 Village Intelligent Parking - Implementation - - - - - $0 6105 1 Village Lighting - Carlsbad Village Drive from Harding Street to Ocean $600,000 ($599,855) - - - - $145 6108 1 Village Lighting - Gateway Lighting - - - - - - $0 2410 1 Village Lighting - Hospitality District - - - - - - $0 6109 1 Village Lighting - Pedestrian - Lampposts Oak Avenue - - - - - $0 6110 1 Village Lighting - Pedestrian Lighting - at Village Outskirts - - - - - $0 4016 1 Village Lighting - State Street, Madison, Roosevelt, and Washington $1,103,853 ♦ $995,000 - - - - $2,098,853 6106 1 Village Lighting - Train Station Area $500,000 ($500,000) - - - - $0 Total $229,140,119 ($3,764,609) $64,330,000 $13,385,000 $16,655,000 $19,852,000 I-19 CRITICAL NEED PROJECTS 🔎🔎 Scoping ☐ Preliminary Design ☑ Final Design ♦ Construction (forecasted amounts; not appropriated in the budget process) New projects in italics Project District ID Type Project Name Prior Appropriation Requested 2024-25 Estimated 2025-26 Estimated 2026-27 Estimated 2027-28 Estimated 2028-29 Estimated 5-Year Total 6084 3 Assessment District 97-1 Maintenance $420,000 - - - - - $420,000 4726 2 Cannon Park Restroom $45,765 - - - - - $45,765 6112 1 Carlsbad Village Drive Reconfiguration $350,000 - ♦ $1,500,000 - - - $1,850,000 201913 Citywide Carlsbad Village Drive Widening - Pontiac Drive to Victoria Avenue - - - - - ☑ $700,000 $700,000 201916 1 Chestnut Avenue Complete Street Improvements - Valley to Pio Pico - - - - - ☐ $250,000 $250,000 6098 1 Chestnut Underpass Public Art Project $400,000 - - - - - $400,000 6074 Citywide City Facility Safety and Parking Lot Lighting Assessment $2,110,000 - - - - - $2,110,000 3636 2 College Boulevard Extension $2,918,002 ($539,108) - - - ☐ $100,000 $2,478,894 201944 3 El Camino Real Right Turn Lane to East Bound Alga Road - - - - - - $0 6634 Citywide Intelligent Traffic Control Devices $200,000 - - - - - $200,000 6628 1 Laguna Drive Storm Drain $256,000 - ☑ $1,000,000 - - - $1,256,000 2307 3 Leo Carrillo Ranch Park Phase 3B - - ☐ $540,000 ☑ $540,000 ♦ $1,484,000 - $2,564,000 6078 1 Ocean Street Reconfiguration Concepts Study - - - - - - $0 2310 2 Orion Complex Energy Storage - - - 🔎🔎 $250,000 - - $250,000 2504 3 Paseo Del Norte Pedestrian and Bike Improvements - ☑ $600,000 - - - - $600,000 6081 Citywide Roadway Slope Stabilization $780,000 🔎🔎 $500,000 - - - - $1,280,000 2524 Citywide Schools Traffic Safety Program - ☑ $1,100,000 - - - - $1,100,000 4085 2 South Shore Agua Hedionda Lagoon Trail $789,940 - - - - - $789,940 6040 Citywide Traffic Impact Fee Update $270,000 - - - - - $270,000 6637 Citywide Traffic Signal Cabinet Upgrades $180,000 ♦ $162,000 - - - - $342,000 6636 2,3,4 Traffic Signal Right Turn Overlaps $150,000 ♦ $135,000 - - - - $285,000 4610 2 Village H South Off Leash Dog Area and Trail Segment 5B $682,500 - - - - ♦ $1,400,000 $2,082,500 Total $9,552,207 $1,957,892 $3,040,000 $790,000 $1,484,000 $2,450,000 I-20 MAINTENANCE PROJECTS New projects in italics Project ID District Type Project Name Prior Appropriation Requested 2024-25 Estimated 2025-26 Estimated 2026-27 Estimated 2027-28 Estimated 2028-29 Estimated 5-Year Total Annual Allocation 4733 2 Alga Norte Park Modifications $1,024,000 $400,000 - - - - $1,424,000 4746 2 Calavera Hills Community Center Refurbishment $1,985,000 - - - - - $1,985,000 6063 3 Carlsbad Boulevard Emergency Repair $841,000 - - - - - $841,000 201912 1 Carlsbad Village Drive and Grand Avenue Pedestrian and Crossing - - - - - $1,320,000 $1,320,000 4727 Citywide City Facility Accessibility Upgrades $500,000 - - - - - $500,000 6616 Citywide City Fire Stations Wash Water BMPs $280,000 - - - - - $280,000 6326 Citywide Coordinated Traffic Signal Program $4,383,979 - - - - - $4,383,979 6622 1 DMP Facility BFB-U (El Camino Real) $850,000 $150,000 $7,375,000 $50,000 $60,000 $70,000 $8,555,000 2501 1 Downtown Tile Replacement - $250,000 - - - - $250,000 6099 2 Faraday Avenue Improvements $275,000 $1,000,000 - - - - $1,275,000 4720 2 Faraday Center Refurbishment $3,154,380 - - - - - $3,154,380 2508 2 Fire Station 5 Renovation - $150,000 $2,000,000 - - - $2,150,000 4747 2 Fleet Fuel Island Upgrade $4,063,800 $400,000 $400,000 $100,000 - - $4,963,800 2502 2 Flower Fields Overlook Sidewalk Replacement - $250,000 - - - - $250,000 2509 Citywide Green Paint Maintenance - $250,000 $150,000 $250,000 $150,000 $250,000 $1,050,000 6087 Citywide Guardrail Replacement and Improvement Study $150,000 - - - - - $150,000 4708 1 Harding Center Refurbishment $610,000 $200,000 - - - - $810,000 4728 1 Hosp Grove Park Improvements $2,904,000 $1,403,000 - - - - $4,307,000 6606 1 Kelly Drive Channel Repair $1,541,000 $2,100,000 - - - - $3,641,000 2517 4 La Costa Avenue Box Culvert Cleaning - $275,000 - - - - $275,000 4752 2 Las Palmas Roof Replacement $500,000 - - - - - $500,000 2507 1 Magee Park Building Restoration - $200,000 - - - - $200,000 6614 4 Marca Place Drainage Improvements $65,000 - - - - - $65,000 2519 Citywide Parks Maintenance Program - $2,147,000 $4,085,000 $1,942,000 $2,073,000 $1,779,000 $12,026,000 2505 2 Police and Fire HQ Parking Lot and Exterior Improvements - $120,000 - - - - $120,000 6088 4 Rancho Santa Fe Trail Slope Improvements $350,000 - - - - - $350,000 6079 Citywide Roadway Improvements - Coastal Area Analysis and Implementation $200,000 - - - - - $200,000 4738 1 Senior Center Repairs and Roof Replacement $3,158,000 - - - - - $3,158,000 4754 1 Senior Center Security Fencing $78,000 $222,000 - - - - $300,000 4742 4 Stagecoach Park Synthetic Turf Replacement $2,200,000 $496,000 - - - - $2,696,000 2521 2 Synthetic Turf Replacement - Alga Norte - - $2,298,000 - - - $2,298,000 2522 2 Synthetic Turf Replacement - Aviara - - $1,960,000 - - - $1,960,000 2523 1 Synthetic Turf Replacement - Pine - - - $1,955,000 - - $1,955,000 2520 3 Synthetic Turf Replacement - Poinsettia - $1,800,000 - - - - $1,800,000 6003 Citywide Traffic Monitoring Program $1,945,415 $170,000 $400,000 $400,000 $400,000 $400,000 $3,715,415 6107 2 Trieste Slope Repair Project $3,317,600 - - - - - $3,317,600 Non-Recurring 6049 Citywide ADA Improvement Program $3,330,000 $715,000 $375,000 $715,000 $175,000 $820,000 $6,130,000 6629 2 Agua Hedionda Creek Maintenance $293,000 $130,000 $145,000 $155,000 $168,000 $181,000 $1,072,000 I-21 MAINTENANCE PROJECTS (CONTINUED) New projects in italics Project ID District Type Project Name Prior Appropriation Requested 2024-25 Estimated 2025-26 Estimated 2026-27 Estimated 2027-28 Estimated 2028-29 Estimated 5-Year Total 6066 Citywide Bridge Preventative Maintenance Program $2,977,511 $700,000 $900,000 $900,000 $950,000 $950,000 $7,377,511 6619 1 Buena Vista Creek Concrete Channel Maintenance at El Camino Real $2,643,000 $375,000 $100,000 $600,000 $40,000 $150,000 $3,908,000 6608 1 Citywide Drainage Improvement Program $11,972,094 $2,200,000 $500,000 $750,000 $400,000 $830,000 $16,652,094 6092 Citywide Citywide Street Lighting Program $150,000 - - - - - $150,000 6093 Citywide Citywide Thermoplastic Pavement Markings $50,000 $150,000 $150,000 $150,000 $150,000 $150,000 $800,000 6013 Citywide Concrete Repair/Replacement Program $5,100,000 $840,000 $870,000 $910,000 $960,000 $1,010,000 $9,690,000 6624 1 Headwall Replacement Program $510,000 $300,000 $345,000 $415,000 $485,000 $555,000 $2,610,000 5049 2 Lake Calavera Reservoir Maintenance $581,001 $150,000 $50,000 $50,000 $50,000 $50,000 $931,001 4723 Citywide Miscellaneous City Building Improvements $2,015,000 $150,000 $150,000 $150,000 $150,000 $150,000 $2,765,000 6052 Citywide Parking Lot Maintenance Program $1,720,000 $550,000 $160,000 $700,000 $175,000 $850,000 $4,155,000 6001 Citywide Pavement Management Program $58,349,890 $10,000,000 $7,350,000 $7,850,000 $8,450,000 $9,050,000 $101,049,890 6037 Citywide Retroreflectivity Sign Replacement Program $1,000,000 $150,000 $70,000 $120,000 $120,000 $120,000 $1,580,000 6002 Citywide Sidewalk/Street Construction Program $3,300,000 $988,000 $633,000 $108,000 $750,000 $200,000 $5,979,000 6620 Citywide Storm Drain Condition Assessment $870,000 $270,000 $300,000 $350,000 $400,000 $455,000 $2,645,000 6607 Citywide Storm Drain System Rehab and Repair Program $7,362,360 $1,350,000 $310,000 $330,000 $350,000 $400,000 $10,102,360 6062 Citywide Street Lighting Replacement Program $3,644,269 - - - - - $3,644,269 Total $140,244,299 $31,001,000 $31,076,000 $18,950,000 $16,456,000 $19,740,000 I-22 ENTERPRISE PROJECTS New projects in italics Project ID District Type Project Name Prior Appropriation Requested 2024-25 Estimated 2025-26 Estimated 2026-27 Estimated 2027-28 Estimated 2028-29 Estimated 5-Year Total 6629 2 Agua Hedionda Creek Maintenance $3,545,249 - - - - - $3,545,249 5545 2 Agua Hedionda Lift Station Biological Monitoring and Maintenance $225,000 - - - - - $225,000 5537 3 Buena Interceptor Sewer Access Road Improvements $500,000 ($400,000) $400,000 - - - $500,000 5501 2,3 Buena Interceptor Sewer Improvements $1,758,686 - $3,300,000 $3,300,000 - - $8,358,686 5544 2 Buena Interceptor Sewer Realignment - East Segment $507,000 $1,400,000 $1,200,000 $1,200,000 - - $4,307,000 5215 2 C Tank Access Road and Electrical Improvements $300,000 - - - - - $300,000 5552 2 Cannon Road Lift Station Improvements $765,000 $350,000 - - - - $1,115,000 5048 2 Carlsbad Boulevard Waterline Replacement at Terramar $4,730,000 - - - - - $4,730,000 5203 3 Carlsbad Water Recycling Facility (Encina Capital Projects) $5,424,654 $516,000 $431,000 $188,000 $253,000 $274,000 $7,086,654 2516 3 Carlsbad Water Recycling Facility - Improvements $350,000 - - - - $350,000 5213 3 Carlsbad Water Recycling Facility Irrigation and Landscape $35,000 - - - - - $35,000 4749 3 Carlsbad Water Recycling Facility Roof Replacement $549,024 - - - - - $549,024 5007 Citywide Cathodic Protection Program $2,086,700 $290,000 $190,000 $190,000 $190,000 - $2,946,700 5554 1 Chinquapin Lift Station Improvements $1,220,000 $300,000 - - - - $1,520,000 2518 2 CMWD Building and Site - Improvements $600,000 $200,000 - - - $800,000 5013 2 College Boulevard - Cannon Road To Badger Lane (375 Zone) $278,383 - $1,400,000 - - - $1,678,383 5012 2 College Boulevard - Cannon Road To Badger Lane (490 Zone) $312,600 - $1,400,000 - - - $1,712,600 5033 1 Crestview Drive Transmission Main $605,000 ($434,000) $551,000 - - - $722,000 5038 2 Desalinated Water Flow Control Facility No. 5 $11,569,600 ($10,000,000) - - - - $1,569,600 201923 1 DMP Facility AAA (Jefferson Street) - - - - - - $0 201924 1 DMP Facility AAAA (Madison Street) - - - - - - $0 6609 1 DMP Facility AC (Highland Drive Drainage Project) - - - - - - $0 201925 2 DMP Facility AFA (Hidden Valley Drainage Restoration and - - - - - - $0 201926 2 DMP Facility AFB (Calavera Hills Drainage Restoration and - - - - - - $0 201927 1 DMP Facility BB 1 and 2 (Washington Street) - - - - - - $0 201928 1 DMP Facility BCB (Magnolia Avenue) - - - - - - $0 201929 1 DMP Facility BFB-L and BFB-1 (Tamarack and El Camino Real Plda - - - - - - $0 6622 1 DMP Facility BFB-U (El Camino Real) $153,489 - - - - - $153,489 201930 2 DMP Facility BL-L (College Boulevard Bridge Reimbursement Plda "B") - - - - - - $0 201931 2 DMP Facility BL-U (College Boulevard) - - - - - - $0 201932 2 DMP Facility BM (Cantarini/College Boulevard Box Culvert) - - - - - - $0 201933 2 DMP Facility BQ (Sunny Creek) - - - - - - $0 201934 2 DMP Facility BR (Cantarini/College Boulevard Pipe Drainage) - - - - - - $0 201935 3 DMP Facility C2 (Paseo Del Norte) - - - - - - $0 201936 3 DMP Facility CA (Avenida Encinas) - - - - - - $0 201937 4 DMP Facility DBA (Poinsettia Village) - - - - - - $0 201938 4 DMP Facility DBB (Avenida Encinas) - - - - - - $0 201939 4 DMP Facility DFA (Batiquitos Lagoon Stormwater Treatment) - - - - - - $0 201940 3 DMP Facility DH (Altive Place Canyon Restoration) - - - - - - $0 6623 Citywide Drainage Master Plan Update $1,281,000 - - - - - $1,281,000 I-23 ENTERPRISE PROJECTS (CONTINUED) New projects in italics Project ID District Type Project Name Prior Appropriation Requested 2024-25 Estimated 2025-26 Estimated 2026-27 Estimated 2027-28 Estimated 2028-29 Estimated 5-Year Total 5553 2 El Fuerte Lift Station Pump Addition $380,000 $45,000 - - - - $425,000 5801 Citywide Encina Capital Projects (EWPCF) $61,469,100 $8,601,300 $9,234,100 $8,917,300 $8,243,900 $8,471,600 $104,937,300 5539 2 Faraday and El Camino Real Sewer Replacement - Orion to Palomar $2,840,000 $340,000 - - - - $3,180,000 5059 2 Hydroelectric Generation at Water Facilities $461,000 $39,000 - - - - $500,000 5540 2 Las Palmas Trunk Sewer $301,000 - $290,000 $1,480,000 $1,480,000 - $3,551,000 5035 1,3 Limited Access Pipeline Relocation Program $2,701,000 $2,550,000 $600,000 - - - $5,851,000 5009 2 Maerkle Facility Improvements $3,591,200 $200,000 - - - - $3,791,200 5001 2 Maerkle Reservoir Transmission Main $195,000 - $540,000 - $4,245,000 - $4,980,000 5050 3 Normally Closed Valve (Install Motorized Valve) $1,966,000 - - - - - $1,966,000 5547 4 North Batiquitos Access Road Improvement $389,800 ($63,800) - - - - $326,000 5536 4 North Batiquitos Lift Station Forcemain Rehabilitation $75,000 - - - - - $75,000 5520 Citywide Odor and Corrosion Prevention Program $320,000 $38,000 - - - - $358,000 5055 2 Palomar Airport Waterline Realignment $2,333,000 - - - - - $2,333,000 5556 2 Poinsettia Lift Station Rehabilitation $650,000 $78,000 - - - - $728,000 5020 Citywide Pressure Reducing Station Program $6,431,040 $600,000 $600,000 $600,000 $600,000 $600,000 $9,431,040 5061 2 Rancho Carlsbad Groundwater Supply $400,000 ($400,000) - - - - $0 5211 Citywide Recycled Water Condition Assessment Program $800,000 - $50,000 $50,000 $50,000 $50,000 $1,000,000 5210 3 Recycled Water Phase 3 - Reservoir $7,033,000 - - - - - $7,033,000 5216 2 Recycled Water Pipeline Replacement $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $2,100,000 5212 Citywide Recycled Water Valve and Appurtenance Replacement Program $380,000 - $125,000 $125,000 $125,000 $125,000 $880,000 5024 Citywide Reservoir Condition Assessment and Repair Program $8,090,000 - - - - - $8,090,000 5044 Citywide San Luis Rey Mission Basin Groundwater Supply $20,000 ($20,000) - - - - $0 5057 Santa Fe II Inlet Pipeline $529,650 - - - - $350,000 $879,650 5046 3 Santa Fe II Reservoir Site Electrical Improvements $293,581 $40,000 - - - - $333,581 5542 Citywide SCADA Improvements $16,226,898 $1,010,000 - - - - $17,236,898 5513 Citywide Sewer Condition Assessment $1,658,000 - $50,000 - $100,000 - $1,808,000 3840 2 Sewer Lift Station Repairs and Upgrades $4,535,380 $165,000 $165,000 $165,000 $165,000 $165,000 $5,360,380 5548 3 Sewer Line Capacity Improvements $1,400,000 $620,000 $944,000 - - - $2,964,000 5546 Citywide Sewer Modeling $200,000 - - - - - $200,000 5504 Citywide Sewer Monitoring Program (Capacity) $642,000 $44,000 - - - - $686,000 5503 1,2,3 Sewer System Rehabilitation and Replacement $10,626,480 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $20,626,480 5008 2 Tri-Agency Water Transmission Pipeline Replacement $2,328,970 - $483,000 - $4,018,000 - $6,829,970 5549 2,3 Vallecitos Interceptor Sewer Cleaning and CCTV $350,000 $500,000 - - - - $850,000 5550 2 Villas Sewer Lift Station Replacement $1,329,000 - - - - - $1,329,000 3492 2 Vista Carlsbad Interceptor - Agua Hedionda LS and Forcemain (VC12- $33,410,970 $104,000 $75,000 $75,000 $75,000 - $33,739,970 5535 1 Vista Carlsbad Interceptor - Buena Vista Lift Station Improvements $382,000 $31,000 $665,000 $665,000 $22,000 - $1,765,000 3950 1 Vista Carlsbad Interceptor - Reach VC3 $130,000 $387,000 $405,000 - - - $922,000 5551 2 Vista Carlsbad Interceptor - Rehabilitation (VC1 and VC2) $231,000 - $80,000 $140,000 - - $451,000 5555 2,3 Vista/Carlsbad Interceptor - Point Repair Reaches (VC13 & VC14) $200,000 $2,800,000 - - - - $3,000,000 5051 Citywide Water Infrastructure Condition Assessment Program $2,600,000 $420,000 $420,000 $450,000 $450,000 $450,000 $4,790,000 I-24 ENTERPRISE PROJECTS (CONTINUED) New projects in italics Project ID District Type Project Name Prior Appropriation Requested 2024-25 Estimated 2025-26 Estimated 2026-27 Estimated 2027-28 Estimated 2028-29 Estimated 5-Year Total 5058 Citywide Water Modeling $375,000 - - - - - $375,000 3904 Citywide Water System Rehabilitation and Replacement $16,058,370 $3,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000 $31,058,370 5019 Citywide Water Valve Repair/Replacement Program $8,820,000 $960,000 $960,000 $1,000,000 $1,000,000 $1,000,000 $13,740,000 Total $239,349,824 $17,410,500 $30,108,100 $23,895,300 $26,366,900 $16,835,600 SUBSTANTIALLY COMPLETE (CLOSEOUT) PROJECTS New projects in italics Project ID District Type Project Name Prior Appropriation Requested 2024-25 Estimated 2025-26 Estimated 2026-27 Estimated 2027-28 Estimated 2028-29 Estimated 5-Year Total 5205 Citywide Abandon Potable Services (New Recycled Services) $1,175,825 - - - - - $1,175,825 4745 Citywide Aviara and Hidden Canyon Parks Playground Safety Resurfacing $600,000 - - - - - $600,000 3649 2 Aviara Reimbursement Agreement $238,000 - - - - - $238,000 4601 2 Calavera Hills Community Park Gateway Improvements $1,407,850 - - - - - $1,407,850 6096 2,3 Carlsbad Boulevard Lane Reduction and Edge Striping $300,000 - - - - - $300,000 4718 1 City Hall Complex Refurbishment $1,144,000 - - - - - $1,144,000 4081 3 Dove Library Lighting Improvements $225,000 - - - - - $225,000 6042 2 El Camino Real and Cannon Road Intersection Improvements $4,197,123 - - - - - $4,197,123 4060 4 Fire Station 2 Replacement $14,433,882 - - - - - $14,433,882 5526 1 Foxes Landing Lift Station Wetwell and Pump Replacement $6,392,000 - - - - - $6,392,000 5054 2 Lake Calavera Outlet Improvements $1,436,001 - - - - - $1,436,001 4602 3 Leo Carrillo Ranch Park Phase 3 - Stables Restoration and Restroom $2,961,777 - - - - - $2,961,777 4603 1 Pine Avenue Park - Phase II (Community Building) $11,648,718 - - - - - $11,648,718 4608 3 Poinsettia Community Park - Phase 4 - Dog Park $2,838,140 - - - - - $2,838,140 5045 3 Poinsettia Lane - Cassia Road to Skimmer Court (Reimbursement $600,000 - - - - - $600,000 6057 1 Public Beach Access Improvements (Ocean Street) $4,183,767 - - - - - $4,183,767 6604 4 Romeria Drainage Improvements $757,940 - - - - - $757,940 4091 2 Temporary Fire Station 7 $2,022,000 - - - - - $2,022,000 4084 2 The Crossings Golf Course Lake Liner Replacement $1,035,500 - - - - - $1,035,500 6335 1 Traffic Signal - Tamarack Avenue and Valley Street $502,370 - - - - - $502,370 3886 Citywide Vista Carlsbad Interceptor - Lagoon Bridge Replacement (VC11B) $9,464,833 - - - - - $9,464,833 3949 Citywide Vista Carlsbad Interceptor - Reach VC14 To VC15 $21,362,390 - - - - - $21,362,390 Total $88,927,116 $0 $0 $0 $0 $0 I-25 PROJECT ACCOUNTING New projects in italics Project ID District Type Project Name Prior Appropriation Requested 2024-25 Estimated 2025-26 Estimated 2026-27 Estimated 2027-28 Estimated 2028-29 Estimated 5-Year Total 4756 N/A Alga Norte Settlement Agreement $1,983,192 - - - - - $1,983,192 201915 N/A CFD#1 Administration - $110,000 $110,000 $110,000 $110,000 $110,000 $550,000 2510 N/A Harding Street Sewer Improvements - $1,200,000 - - - - $1,200,000 PA04 N/A Loan Repay - Park-in-Lieu NE to Public Facility Fee Fund - - - - - - $0 PA02 N/A Loan Repay - Park-in-Lieu SW to Public Facility Fee Fund - - - - - - $0 PA03 N/A Loan Repay - Sewer Conn to Sewer Repl - - - $3,500,000 - - $3,500,000 4755 N/A New Village Arts Tenant Improvements $613,000 - - - - - $613,000 4083 N/A Open Space and Trail Acquisition (Prop C) $4,015,000 - - - - - $4,015,000 PA06 N/A Recycled Replacement to Recycled Operating - $1,500,000 - - - - $1,500,000 4743 N/A Safety Training Center Settlement $1,156,995 - - - - - $1,156,995 PA05 N/A Traffic Impact Fee Funds to CFD #1 - $90,000 $90,000 $90,000 $90,000 $90,000 $450,000 Total $7,768,187 $2,900,000 $200,000 $3,700,000 $200,000 $200,000 PROGRAM ADJUSTMENTS ▲ Completed, project account closed △ Combined, project scope incorporated into other existing projects ▼ Cancelled, project no longer warranted Project ID District Type Project Name Prior Appropriation Requested 2024-25 Estimated 2025-26 Estimated 2026-27 Estimated 2027-28 Estimated 2028-29 Estimated 5-Year Total 6030 2 ▼ Camino Hills and Jackspar Drive Slope Stabilization $859,400 ($768,681) - - - - $90,719 201907 1 △ Carlsbad Boulevard Median - Tamarack Avenue to Pine Avenue - - - - - - $0 6068 1 △ Carlsbad Boulevard Pedestrian Lighting $1,325,000 ($1,254,934) - - - - $70,066 6111 1,2,3 △ Carlsbad Boulevard Roadway Configuration $2,000,000 ($2,000,000) - - - - $0 201917 1 ▼ Christiansen Way Improvements - - - - - - $0 4725 1 ▲ City Hall Exterior Refurbishment $2,250,000 - - - - - $2,250,000 201921 1 △ Cole Library Replacement - - - - - - $0 4750 1 ▼ Cole Library Security Fencing $170,000 ($144,435) - - - - $25,565 201941 4 ▼ DMP Facility DQB (La Costa Town Center) - - - - - - $0 201942 3 ▼ DMP Facility DZ (Poinsettia Lane) - - - - - - $0 6056 2 ▲ El Camino Real/Agua Hedionda Creek Bridge Railing and Sidewalk $210,000 - - - - - $210,000 3643 Citywide △ El Camino Real Medians $1,600,310 ($352,000) - - - - $1,248,310 5043 1 ▲ Fire Flow Capacity System Improvements $625,000 - - - - - $625,000 4748 3 ▲ Leo Carrillo Ranch Roof Repairs $1,450,000 ($80,000) - - - - $1,370,000 4741 1,3 ▲ Library Fire Alarm Panel Upgrades $180,000 ($39,990) - - - - $140,010 4739 1 ▲ New Village Arts Building Roof and Exterior Refurbishment $313,626 ($8,230) - - - - $305,396 4729 1 ▼ Ocean Street Restroom Facility $775,000 ($769,895) - - - - $5,105 6102 2,3 ▼ Palomar Airport Road and Avenida Encinas Growth $230,000 ($230,000) - - - - $0 6028 2 ▼ Palomar Airport Road and College Boulevard Improvements $1,295,500 ($735,901) - - - - $559,599 4092 Citywide △ Public Works Storage Facility $99,000 ($99,000) - - - - $0 4063 1 △ Trail Connectivity to Tamarack State Beach (Prop C) - - - - - - $0 5052 Citywide ▲ Water Loss Monitoring Program $167,089 - - - - - $167,089 Total $13,549,925 ($6,483,066) $0 $0 $0 $0 I-26 REQUESTED APPROPRIATION SUMMARY Fiscal Year 2024-25 2025-26 2026-27 2027-28 2028-29 Estimated 5-Year Total Requested Appropriation $15,204,716 $65,974,100 $47,635,300 $43,677,900 $53,875,600 $226,367,617 Estimated Future Costs $27,817,000 $62,780,000 $13,085,000 $17,484,000 $5,202,000 126,368,000 Total $43,021,716 $128,754,100 $60,720,300 $61,161,900 $59,077,600 $352,735,616 Requested Appropriation does not include construction amounts for Strategic Plan and Critical Need projects. It does include full amounts for Maintenance and Enterprise projects as shown. I-27 CAPITAL IMPROVEMENT PROGRAM 15-YEAR FORECAST PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 36,419,464 58,234,614 14,291,235 15,397,302 16,370,201 2,941,194 REVENUESDeveloper Special Taxes 2,125,151 2,316,621 1,216,066 1,082,899 2,180,993 24,230,345 Total Revenues N/A 2,125,151 2,316,621 1,216,066 1,082,899 2,180,993 24,230,345 CAPITAL PROJECTS CFD#1 Administration -$ 110,000 110,000 110,000 110,000 110,000 - City Hall Complex 1,028,105 - - - - 15,500,000 100,000,000 Cole Library Expansion - - - - - - - Orion Center 35,257,727 (25,600,000) 46,150,000 - - - - Veteran's Memorial Park (All Quadrants)41,711,452 5,800,000 - - - - - Total Project Expenditures 77,997,285 (19,690,000) 46,260,000 110,000 110,000 15,610,000 100,000,000 ENDING FUND BALANCE N/A 58,234,614 14,291,235 15,397,302 16,370,201 2,941,194 (72,828,461) PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 178,950 4,937,945 2,697,828 4,628,492 (9,396,669) (7,985,256) REVENUES Gas Tax and Prop 42 Funds 3,186,643 3,262,882 3,298,664 3,334,839 3,371,413 34,270,794 Total Revenues N/A 3,186,643 3,262,882 3,298,664 3,334,839 3,371,413 34,270,794 CAPITAL PROJECTS Barrio Street Lighting 150,000 - - - - - - Camino De Los Coches and La Costa Avenue Intersection Control 350,000 - 2,000,000 - - - - Carlsbad Village Drive Widening - Pontiac Drive to Victoria Avenue - - - - - 700,000 2,500,000 Carlsbad Blvd And Tamarack Avenue Pedestrian Improvements 1,771,001 - - 300,000 15,600,000 - - Carlsbad Boulevard Emergency Repair 841,002 - - - - - - Carlsbad Boulevard Lane Reduction and Edge Striping 300,000 - - - - - - Carlsbad Blvd Median-Tamarack Avenue To Pine Avenue - - - - - - - Carlsbad Blvd Pedestrian Improvement Project 1,055,888 - - - - - - Citywide Drainage Improvement Program 6,090,594 - - - - - - Citywide Street Lighting Program 150,000 - - - - - - Citywide Thermoplastic Pavement Markings 50,000 150,000 150,000 150,000 150,000 150,000 1,500,000 Concrete Repair/Replacement Program 3,133,000 260,000 250,000 290,000 340,000 390,000 4,700,000 El Camino Real And Cannon Road Intersection Improvements 661,126 - - - - - - El Camino Real Medians 904,530 (352,000) - - - - - El Camino Real Widening - Arenal Road to La Costa Avenue 1,450,000 - - - - - - Guardrail Replacement And Improvement Program 150,000 - - - - - 200,000 Intelligent Traffic Control Devices 199,999 - - - - - - Kelly Drive And Park Drive Road Diet And Multiuse Trail 130,000 - 1,000,000 - - - - La Costa Avenue Traffic Improvements 121,300 (108,842) - - - - 109,000 Laguna Drive Storm Drain 256,000 - 1,000,000 - - - 1,494,000 Marca Place Drainage Improvements 65,000 - - - - - - Palomar Airport Rd and Avenida Encinas GMP Improvements 230,000 (230,000) - - - - - Park Drive Drainage And Street Improvements 3,965,001 - - - - - - Paseo Del Norte Pedestrian and Bike Improvements - 65,490 - - - - - Pavement Management Program 7,930,849 - - - - - - Retroreflectivity Sign Replacement Program 1,000,000 150,000 70,000 120,000 120,000 120,000 1,200,000 Roadway Slope Stabilization 779,998 500,000 - - - - - Romeria Drainage Improvements 347,937 - - - - - - Schools Traffic Safety Program - 250,000 - - - - - Sidewalk/Street Construction Program - 988,000 633,000 108,000 750,000 200,000 5,225,000 Sustainable Mobility Plan Implementation Program 710,567 - - - - - - Traffic Improvement Program 2,388,004 - - - - - - Traffic Monitoring Program 200,000 170,000 400,000 400,000 400,000 400,000 - Traffic Signal - Maverick Way & Camino De Los Coches 490,000 450,000 - - - - - Traffic Signal - Tamarack Avenue And Valley Street 502,370 - - - - - - Traffic Signal Right Turn Overlaps 150,000 135,000 - - - - - Village And Barrio Traffic Circles 4,159,001 (4,000,000) - - - - - Total Project Expenditures 40,683,167 (1,572,352) 5,503,000 1,368,000 17,360,000 1,960,000 16,928,000 ENDING FUND BALANCE N/A 4,937,945 2,697,828 4,628,492 (9,396,669) (7,985,256) 9,357,538 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 102,632 8,280 (55,616) (345,463) (601,978) (824,795) REVENUES Gas Tax (RMRA) Revenues 2,935,648 3,006,104 3,030,153 3,063,485 3,097,183 32,908,847 Total Revenues N/A 2,935,648 3,006,104 3,030,153 3,063,485 3,097,183 32,908,847 CAPITAL PROJECTS Concrete Repair/Replacement Program 1,967,000$ 580,000 620,000 620,000 620,000 620,000 6,200,000 Pavement Management Program 12,786,002 2,450,000 2,450,000 2,700,000 2,700,000 2,700,000 27,000,000 Total Project Expenditures 14,753,002 3,030,000 3,070,000 3,320,000 3,320,000 3,320,000 33,200,000 ENDING FUND BALANCE N/A 8,280 (55,616) (345,463) (601,978) (824,795) (1,115,948) COMMUNITY FACILITIES DISTRICT NO. 1 (CFD 1) GAS TAX FUND GAS TAX (ROAD MAINTENANCE AND REHABILITATION ACCOUNT) I-28 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 13,904,855 30,695,512 35,001,390 29,100,471 33,652,320 37,210,670 REVENUES Transfer from General Fund 18,579,226 4,905,878 5,049,081 5,191,849 5,328,350 57,285,820 Total Revenues N/A 18,579,226 4,905,878 5,049,081 5,191,849 5,328,350 57,285,820 CAPITAL PROJECTS ADA Beach Access - Pine to Tamarack 375,001$ 375,000 - 10,000,000 - - - Alga Norte Park Modifications 1,023,999 400,000 - - - - - Alga Norte Settlement Agreement 1,983,192 - - - - - - Assessment District 97-1 Maintenance 420,001 - - - - - - Barrio Street Lighting 760,000 - - - - - - Beach Access Repair and Upgrades - Pine Avenue to Tamarack 6,899,002 600,000 - - - - - Buena Vista Creek Concrete Channel Maintenance at El Camino Real 1,249,998 - - - 40,000 150,000 1,092,000 Calavera Hills Community Park Gateway Improvements 1,407,853 - - - - - - Camino Hills and Jackspar Drive Slope Stabilization 859,399 (768,681) - - - - - Cannon Park Restroom 45,765 - - - - - - Carlsbad Boulevard Roadway Configuration 2,000,000 (2,000,000) - - - - - Carlsbad Village Dr. & Grand Ave. Pedestrian & Crossing Improvements - - - - - 920,000 - Chestnut Underpass Public Art Project 400,000 - - - - - - City Facility Accessibility Upgrades 500,000 - - - - - - City Fire Stations Wash Water BMPs 279,999 - - - - - - City Hall Exterior Refurbishment 2,250,001 - - - - - - Cole Library Expansion - - - - - - - Dove Library Lighting Improvements 225,001 - - - - - - Faraday Avenue Improvements 275,000 1,000,000 - - - - - Fire Station No. 2 Replacement 13,000,004 - - - - - - Fire Station No. 7 100,000 - - - - - - Fleet Maintenance Refurbishment 896,100 1,700,000 - - - - - Grand Avenue Promenade 300,000 - - - - - 10,500,000 Green Paint Maintenance - 250,000 150,000 250,000 150,000 250,000 1,700,000 La Costa Avenue Box Culvert Cleaning - 275,000 - - - - - Lake Calavera Outlet Improvements 1,436,002 - - - - - - Lake Calavera Reservoir Maintenance 581,005 150,000 50,000 50,000 50,000 50,000 500,000 Monroe Street Pool Renovation/Replacement 236 - - - - - - New Village Arts Tenant Improvements 613,000 - - - - - - Ocean Street Reconfiguration Concepts Study - - - - - - 400,000 Ocean Street Restroom Facility 775,000 (769,895) - - - - - Open Space and Trail Acquisition (Prop C)4,015,000 - - - - - - Orion Center - 99,000 - - - - - Orion Complex Energy Storage - - - 250,000 - - - Park Drive Street and Drainage Improvement 1,117,439 - - - - - - Police and Fire Headquarters Parking Lot Improvements - 120,000 - - - - - Police and Fire Headquarters Renovation 14,492,847 - - - - - - Public Beach Access Improvements (Ocean Street)3,610,340 - - - - - - Public Works Storage Facility 99,000 (99,000) - - - - - Rancho Santa Fe Trail Slope Improvements 350,000 - - - - - - Roadway Improvements - Coastal Area Analysis and Implementation 200,000 - - - - - - Romeria Drainage Improvements 410,001 - - - - - - Safety Training Center Settlement 1,156,995 - - - - - - South Shore Agua Hedionda Lagoon Trail 789,941 - - - - - - Street Lighting Replacement Program 319,270 - - - - - - Temporary Fire Station No. 7 900,000 - - - - - - Terramar Area Coastal Improvements 1,000,000 - - - - - - The Crossings Golf Course Lake Liner Replacement 200,000 - - - - - - Traffic Improvement Program 999,999 400,000 400,000 400,000 400,000 400,000 - Traffic Signal Cabinet Upgrades 180,000 162,000 - - - - - Trail Connectivity to Tamarack State Beach (Prop C)152,156 - - - - - - Trieste Slope Repair Project 3,317,600 - - - - - - Tyler Street Traffic Circulation 970,000 - - - - - - Utility Undergrounding Program Study - - - - - - 100,000 Village and Barrio Traffic Circles 415,000 - - - - - - Village Intelligent Parking Implementation - - - - - - 300,000 Village Lighting - Carlsbad Village Dr. from Harding St. to Ocean St.600,000 (599,855) - - - - 600,000 Village Lighting - Gateway Lighting - - - - - - 950,000 Village Lighting - Hospitality District - - - - - - 700,000 Village Lighting - Pedestrian Lampposts Oak Avenue - - - - - - 600,000 Village Lighting - Pedestrian Lighting at Village Outskirts - - - - - - 950,000 Village Lighting - State Street, Madison, Roosevelt, and Washington 1,103,853 995,000 - - - - - Village Lighting - Train Station Area 500,000 (500,000) - - - - 500,000 Total Project Expenditures 75,555,000 1,788,569 600,000 10,950,000 640,000 1,770,000 18,892,000 N/A 30,695,512 35,001,390 29,100,471 33,652,320 37,210,670 75,604,490 GENERAL CAPITAL CONSTRUCTION (GCC) I-29 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A (1,058,577) 3,224 3,224 3,224 3,224 3,224 REVENUES Grant Revenue 1,911,801 - - - - - Total Revenues N/A 1,911,801 - - - - - CAPITAL PROJECTS Avenida Encinas Coastal Rail Trail and Pedestrian Improvements -$ - - - - - - Barrio Street Lighting 1,000,000 - - - - - - El Camino Real Widening - Poinsettia Lane to Camino Vida Roble 1,440,000 - - - - - - Veteran's Memorial Park (All Quadrants)3,000,000 - - - - - - Village and Barrio Traffic Circles 4,000,000 - - - - - - Schools Traffic Safety Program - 850,000 - - - - - Total Project Expenditures 9,440,000 850,000 - - - - - ENDING FUND BALANCE N/A 3,224 3,224 3,224 3,224 3,224 3,224 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 21,982 21,982 21,982 21,982 21,982 21,982 REVENUES Grant Revenue 534,510 - - - - - Total Revenues N/A 534,510 - - - - - CAPITAL PROJECTS Avenida Encinas Coastal Rail Trail and Pedestrian Improvements 1,776,000$ - - - - - - Carlsbad Boulevard Pedestrian Improvement Project 591,600$ - - - - - - Paseo Del Norte Pedestrian and Bike Improvements -$ 534,510 - - - - - Veteran's Memorial Park (All Quadrants)5,000,000 - - - - - - Total Project Expenditures 7,367,600 534,510 - - - - - ENDING FUND BALANCE N/A 21,982 21,982 21,982 21,982 21,982 21,982 GRANTS - STATE GRANTS - FEDERAL I-30 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 77,987,687 62,599,568 44,477,446 38,544,527 37,870,376 33,901,726 REVENUES Transfer from General Fund 4,979,226 4,905,878 5,049,081 5,191,849 5,328,350 57,285,820 Total Revenues N/A 4,979,226 4,905,878 5,049,081 5,191,849 5,328,350 57,285,820 CAPITAL PROJECTS Agua Hedionda Creek Maintenance 293,002$ 130,000 145,000 155,000 168,000 181,000 2,280,000 Aviara and Hidden Canyon Parks Playground Safety Resurfacing 600,001 - - - - - - Beach Access Repair and Upgrades - Pine Avenue to Tamarack - 1,900,000 - - - - - Bridge Preventative Maintenance Program - 700,000 900,000 900,000 950,000 950,000 - Buena Vista Creek Concrete Channel Maintenance at El Camino Real 1,393,001 375,000 100,000 600,000 - - - Calavera Hills Community Center Refurbishment 1,985,001 - - - - - - Carlsbad Village Drive Reconfiguration - - 1,500,000 - - - - City Facility Safety and Parking Lot Lighting Assessment - - - - - - - City Hall Complex Refurbishment - - - - - - - Citywide Drainage Improvement Program 5,881,501 2,200,000 500,000 750,000 400,000 830,000 6,100,000 Cole Library Security Fencing 170,000 (144,435) - - - - - Coordinated Traffic Signal Program - - - - - - - DMP Facility BFB-U (El Camino Real)850,001 150,000 7,375,000 50,000 60,000 70,000 800,000 Downtown Tile Replacement - 250,000 - - - - - El Camino Real and Agua Hedionda Creek Bridge Railing and Sidewalk 209,999 - - - - - - Faraday Center Refurbishment 3,154,381 - - - - - - Fire Station No. 2 Replacement - - - - - - - Fire Station 5 Renovation - 150,000 2,000,000 - - - - Fleet Fuel Island Upgrade 4,063,801 400,000 400,000 100,000 - - - Fleet Maintenance Refurbishment - 3,000,000 - - - - - Flower Fields Overlook Sidewalk Replacement - 250,000 - - - - - Harding Center Refurbishment - 200,000 - - - - - Headwall Replacement Program 510,002 300,000 345,000 415,000 485,000 555,000 7,326,000 Hosp Grove Park Improvements 1,562,000 - - - - - - Hosp Grove Park Improvements 120,000 - - - - - - Kelly Drive Channel Repair 1,541,005 2,100,000 - - - - - Las Palmas Roof Replacement 500,000 - - - - - - Leo Carrillo Ranch Roof Repairs 1,449,999 (80,000) - - - - - Library Fire Alarm Panel Upgrades 180,000 (39,990) - - - - - Magee Park Building Restoration - 200,000 - - - - - Miscellaneous City Building Improvements 2,014,999 150,000 150,000 150,000 150,000 150,000 1,500,000 Monroe Street Pool Replacement 1,748,766 - - - - - - New Village Arts Building Roof and Exterior Refurbishment 313,626 (8,230) - - - - - Parking Lot Maintenance Program 1,720,001 550,000 160,000 700,000 175,000 850,000 4,860,000 Parks Maintenance Program - 2,147,000 4,085,000 1,942,000 2,073,000 1,779,000 - Police and Fire Headquarters Renovation - - - - - - - Public Beach Access Improvements (Ocean Street)- - - - - - - Schulman Auditorium and Cannon Art Gallery 1,650,000 - - - - - - Senior Center Repairs and Roof Replacement 3,158,001 - - - - - - Senior Center Security Fencing 78,000 222,000 - - - - - Stagecoach Park Synthetic Turf Replacement 2,200,001 496,000 - - - - - Storm Drain Condition Assessment 870,001 270,000 300,000 350,000 400,000 455,000 5,375,000 Storm Drain System Rehab and Repair Program 7,362,363 1,350,000 310,000 330,000 350,000 400,000 4,100,000 Synthetic Turf Replacement - Alga Norte - - 2,298,000 - - - - Synthetic Turf Replacement - Aviara - - 1,960,000 - - - - Synthetic Turf Replacement - Pine - - - 1,955,000 - - - Synthetic Turf Replacement - Poinsettia - 1,800,000 - - - - - Trash Amendment Compliance Program 630,000 1,350,000 500,000 2,585,000 655,000 3,077,000 20,324,000 Total Project Expenditures 46,209,452 20,367,345 23,028,000 10,982,000 5,866,000 9,297,000 52,665,000 ENDING FUND BALANCE N/A 62,599,568 44,477,446 38,544,527 37,870,376 33,901,726 38,522,546 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 823,999 1,147,488 1,147,488 1,147,488 1,147,488 1,047,488 REVENUES Other Financing Sources - - - - - - Total Revenues N/A - - - - - - CAPITAL PROJECTSCollege Blvd Reach A And Cannon Road Reach 4A 1,712,999$ (323,489) - - - 100,000 324,000 Total Project Expenditures 1,712,999 (323,489) - - - 100,000 324,000 ENDING FUND BALANCE N/A 1,147,488 1,147,488 1,147,488 1,147,488 1,047,488 723,488 INFRASTRUCTURE MAINTENANCE & REPLACEMENT OTHER I-31 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE (1)N/A 3,925,392 3,500,392 3,500,392 5,002,704 6,505,016 7,996,520 REVENUES Developer Fees - - 1,502,312 1,502,312 1,491,504 12,721,016 Total Revenues N/A - - 1,502,312 1,502,312 1,491,504 12,721,016 CAPITAL PROJECTS Loan - Park-in-Lieu NE to Public Facility Fee Fund for Park Site Acquisition -$ - - - - - 4,550,000 Robertson Ranch Park Development 1,037,999 425,000 - - - - - Total Project Expenditures 1,037,999 425,000 - - - - 4,550,000 ENDING FUND BALANCE N/A 3,500,392 3,500,392 5,002,704 6,505,016 7,996,520 16,167,536 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A (36,160) 203,656 3,781,104 5,283,416 6,785,728 8,320,464 REVENUES Developer Fees 1,642,816 3,577,448 1,502,312 1,502,312 1,534,736 21,194,488 Total Revenues N/A 1,642,816 3,577,448 1,502,312 1,502,312 1,534,736 21,194,488 CAPITAL PROJECTS City Facility Safety and Parking Lot Lighting Assessment 200,000$ - - - - - - Hosp Grove Park Improvements 1,222,000 1,403,000 - - - - - Monroe Street Pool Replacement 3,061,765 - - - - - - Pine Avenue Park - Phase II (Community Building)2,197,002 - - - - - - Total Project Expenditures 6,680,767 1,403,000 - - - - - ENDING FUND BALANCE N/A 203,656 3,781,104 5,283,416 6,785,728 8,320,464 29,514,952 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 1,517,066 1,830,498 6,716,114 6,716,514 5,232,514 5,232,514 REVENUES Developer Fees 313,432 5,425,616 540,400 - - 205,352 Total Revenues N/A 313,432 5,425,616 540,400 - - 205,352 CAPITAL PROJECTS Leo Carrillo Ranch Park Phase 3 - Stables Restoration and Restroom Construction 1,329,989$ - - - - - - Leo Carrillo Ranch Park Phase 3B - - 540,000 540,000 1,484,000 - - Stagecoach Community Park Community Gardens 620,001 - - - - - - Total Project Expenditures 1,949,989 - 540,000 540,000 1,484,000 - - ENDING FUND BALANCE N/A 1,830,498 6,716,114 6,716,514 5,232,514 5,232,514 5,437,866 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 2,184,536 3,114,024 3,114,024 3,114,024 3,114,024 4,973,000 REVENUES Developer Fees/Loans 929,488 - - - 1,858,976 756,560 Total Revenues N/A 929,488 - - - 1,858,976 756,560 CAPITAL PROJECTS Aviara Reimbursement Agreement 238,001$ - - - - - - Loan Repay - Park-in-Lieu SW to Public Facility Fee Fund - - - - - - 1,100,000 Total Project Expenditures 238,001 - - - - - 1,100,000 N/A 3,114,024 3,114,024 3,114,024 3,114,024 4,973,000 4,629,560 PARK-IN-LIEU SW PARK-IN-LIEU NE PARK-IN-LIEU NW PARK-IN-LIEU SE I-32 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 5,197,664 5,199,664 3,754,836 3,769,117 3,771,398 3,771,398 REVENUES Developer Fees 2,000 55,173 14,281 2,281 - 811,367 Total Revenues N/A 2,000 55,173 14,281 2,281 - 811,367 CAPITAL PROJECTS Business Park Recreational Facility (Partial Funding)-$ - 1,500,000 - - - 16,500,000 Total Project Expenditures - - 1,500,000 - - - 16,500,000 ENDING FUND BALANCE N/A 5,199,664 3,754,836 3,769,117 3,771,398 3,771,398 (11,917,235) PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 1,046,182 1,046,182 1,046,182 1,046,182 1,046,182 1,046,182 REVENUES Developer Fees - - - - - 54,606 Total Revenues N/A - - - - - 54,606 CAPITAL PROJECTS DMP Facility AAA (Jefferson Street)-$ - - - - - 290,000 DMP Facility AAAA (Madison Street)- - - - - - 417,000 DMP Facility AC (Highland Drive Drainage Project)- - - - - - 922,000 DMP Facility AFA (Hidden Valley Drainage Restoration and Enhancement Project)- - - - - - 92,000 DMP Facility AFB (Calavera Hills Drainage Restoration and Enhancement Project)- - - - - - 164,000 Drainage Master Plan Update 216,511 - - - - - - Total Project Expenditures 216,511 - - - - - 1,885,000 ENDING FUND BALANCE N/A 1,046,182 1,046,182 1,046,182 1,046,182 1,046,182 (784,212) PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 1,684,311 1,842,702 1,989,063 2,264,058 2,539,053 2,814,972 REVENUES Developer Fees 158,391 146,361 274,995 274,995 275,919 3,329,005 Total Revenues N/A 158,391 146,361 274,995 274,995 275,919 3,329,005 CAPITAL PROJECTS Agua Hedionda Creek Maintenance 3,545,245$ - - - - - - College Boulevard Extension - - - - - - - DMP Facility BB 1 and 2 (Washington Street)- - - - - - 1,087,000 DMP Facility BCB (Magnolia Avenue)- - - - - - 469,000 DMP Facility BFB-L and BFB-1 (Tamarack and El Camino Real Plda "B")- - - - - - 905,000 DMP Facility BFB-U (El Camino Real)153,490 - - - - - - DMP Facility BL-L (College Boulevard Bridge Reimbursement Plda "B")- - - - - - 1,817,000 DMP Facility BL-U (College Boulevard)- - - - - - 385,000 DMP Facility BM (Cantarini/College Boulevard Box Culvert)- - - - - - 205,000 DMP Facility BQ (Sunny Creek)- - - - - - 132,000 DMP Facility BR (Cantarini/College Boulevard Pipe Drainage)- - - - - - 181,000 Drainage Master Plan Update 583,000 - - - - - - Total Project Expenditures 4,281,735 - - - - - 5,181,000 ENDING FUND BALANCE N/A 1,842,702 1,989,063 2,264,058 2,539,053 2,814,972 962,978 PARK FEE ZONES 5,13,16,17,18 PLANNED LOCAL DRAINAGE AREA A FEES (PLD A) PLANNED LOCAL DRAINAGE AREA B FEES (PLD B) I-33 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 1,618,729 1,687,384 1,992,292 2,033,456 2,040,030 2,113,889 REVENUES Developer Fees 68,655 304,908 41,164 6,574 73,859 1,817,908 Total Revenues N/A 68,655 304,908 41,164 6,574 73,859 1,817,908 CAPITAL PROJECTS DMP Facility C2 (Paseo Del Norte)-$ - - - - - 728,000 DMP Facility CA (Avenida Encinas)- - - - - - 530,000 Drainage Master Plan Update 246,890 - - - - - - Total Project Expenditures 246,890 - - - - - 1,258,000 ENDING FUND BALANCE N/A 1,687,384 1,992,292 2,033,456 2,040,030 2,113,889 2,673,797 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 832,958 853,399 1,211,629 1,246,874 1,246,874 1,297,626 REVENUES Developer Fees 20,442 358,230 35,245 - 50,752 1,462,457 Total Revenues N/A 20,442 358,230 35,245 - 50,752 1,462,457 CAPITAL PROJECTS DMP Facility DBA (Poinsettia Village)-$ - - - - - 168,000 DMP Facility DBB (Avenida Encinas)- - - - - - 430,000 DMP Facility DFA (Batiquitos Lagoon Stormwater Treatment)- - - - - - 257,000 DMP Facility DH (Altive Place Canyon Restoration)- - - - - - 233,000 DMP Facility DQB (La Costa Town Center)- - - - - - - DMP Facility DZ (Poinsettia Lane)- - - - - - - Drainage Master Plan Update 234,599 - - - - - - Total Project Expenditures 234,599 - - - - - 1,088,000 ENDING FUND BALANCE N/A 853,399 1,211,629 1,246,874 1,246,874 1,297,626 1,672,083 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 28,314,628 28,024,418 28,739,118 31,199,778 33,243,617 35,075,004 REVENUES Developer Fees 1,959,790 6,214,699 2,460,660 2,043,839 3,231,387 39,489,101 Total Revenues N/A 1,959,790 6,214,699 2,460,660 2,043,839 3,231,387 39,489,101 CAPITAL PROJECTS Cole Library Expansion -$ - - - - - - El Camino Real Medians - - - - - - - Kelly Drive and Park Drive Complete Street Improvements 998,001 - - - - - - Leo Carrillo Ranch Park Phase 3 - Stables Restoration and Restroom Construction - - - - - - - Leo Carrillo Ranch Park Phase 3 - Stables Restoration and Restroom Construction - - - - - - - Pickleball Courts 300,000 2,100,000 - - - - - Pine Avenue Park - Phase II (Community Building)- - - - - - - Pine Avenue Park - Phase II (Community Building)- - - - - - - Poinsettia Community Park - Phase 4 - Dog Park 2,838,138 - - - - - - Poinsettia Community Park - Phase 4 - Dog Park - - - - - - - Robertson Ranch Park Development (Partial Funding)- - - - - - - South Carlsbad Coastline - - - - - - 3,000,000 State Street Parking Lot Electric Vehicle Charging Stations - 150,000 - - - - - Temporary Fire Station No. 7 - - - - - - - Terramar Area Coastal Improvements 2,450,001 - 5,500,000 - - - - Valley and Magnolia Complete Streets 251,000 - - - - - - Village H South Off Leash Dog Area and Trail Segment 5B 682,500 - - - - 1,400,000 - Total Project Expenditures 7,519,639 2,250,000 5,500,000 - - 1,400,000 3,000,000 ENDING FUND BALANCE N/A 28,024,418 28,739,118 31,199,778 33,243,617 35,075,004 71,564,105 PLANNED LOCAL DRAINAGE AREA C FEES (PLD C) PLANNED LOCAL DRAINAGE AREA D FEES (PLD D) PUBLIC FACILITY FEE FUND (PFF) I-34 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 1,242,547 (138,590) 311,215 (4,277,313) (5,442,412) (5,001,940) REVENUES Developer Fees and Miscellaneous 383,313 905,005 414,922 314,901 440,471 5,710,473 Other Agency Contributions (City of Vista)251,550 306,800 43,550 - - - Total Revenues N/A 634,863 1,211,805 458,472 314,901 440,471 5,710,473 CAPITAL PROJECTS Buena Interceptor Sewer Improvements 550,000$ - - - - - - El Fuerte Lift Station Pump Addition 380,000 45,000 - - - - - Faraday and El Camino Real Sewer Replacement - Orion to Palomar Airport Road 2,840,001 340,000 - - - - - Harding Street Sewer Improvements - 1,200,000 - - - - - Las Palmas Trunk Sewer 301,000 - 290,000 1,480,000 1,480,000 - - Loan Repay - Sewer Conn to Sewer Repl - - - 3,500,000 - - - Sewer Line Capacity Improvements - - - - - - - Sewer Modeling 199,999 - - - - - - Sewer Monitoring Program (Capacity)642,000 44,000 - - - - 264,000 Vista Carlsbad Interceptor - Agua Hedionda LS and Forcemain (VC12-VC13)33,696,172 - - - - - - Vista Carlsbad Interceptor - Buena Vista Lift Station Improvements 296,001 - 67,000 67,000 - - - Vista Carlsbad Interceptor - Lagoon Bridge Replacement (VC11B)9,464,834 - - - - - - Vista Carlsbad Interceptor - Reach VC14 To VC15 21,362,391 - - - - - - Vista Carlsbad Interceptor - Reach VC3 130,000 387,000 405,000 - - - - Total Project Expenditures 69,862,399 2,016,000 762,000 5,047,000 1,480,000 - 264,000 ENDING FUND BALANCE N/A (138,590) 311,215 (4,277,313) (5,442,412) (5,001,940) 444,532 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A (7,109,097) (3,036,370) (12,398,343) (19,870,355) (21,402,464) (22,683,475) REVENUES Transfer from Sewer Operating Fund 20,571,241 8,744,127 8,923,288 9,073,791 9,355,590 112,214,647 Total Revenues N/A 20,571,241 8,744,127 8,923,288 9,073,791 9,355,590 112,214,647 CAPITAL PROJECTS Agua Hedionda Lift Station Biological Monitoring and Maintenance 224,999$ - - - - - - Buena Interceptor Sewer Access Road Improvements 500,000 (400,000) 400,000 - - - - Buena Interceptor Sewer Improvements 1,208,691 - 3,300,000 3,300,000 - - 3,965,000 Buena Interceptor Sewer Realignment - East Segment 507,000 1,400,000 1,200,000 1,200,000 - - - Cannon Road Lift Station Improvements 765,000 350,000 - - - - - Carlsbad Municipal Water District Building and Site Improvements - 180,000 60,000 - - - - Chinquapin Lift Station Improvements 1,220,000 300,000 - - - - - Encina Capital Projects 61,469,098 8,601,300 9,234,100 8,917,300 8,243,900 8,471,600 116,469,800 Foxes Landing Lift Station Wetwell and Pump Replacement 6,392,000 - - - - - - North Batiquitos Access Road Improvement 389,800 (63,800) - - - - - North Batiquitos Lift Station Forcemain Rehabilitation 75,000 - - - - - - Odor and Corrosion Prevention Assessment 320,000 38,000 - - - - - Orion Center 299,999 (204,985) - - - - - Poinsettia Lift Station Rehabilitation 650,000 78,000 - - - - - SCADA Improvements 4,684,899 - - - - - - Sewer Condition Assessment 1,657,998 - 50,000 - 100,000 - 1,000,000 Sewer Lift Station Repairs and Upgrades 4,535,385 165,000 165,000 165,000 165,000 165,000 1,500,000 Sewer Line Capacity Improvements 1,400,001 620,000 944,000 - - - - Sewer System Rehabilitation and Replacement 10,626,479 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 27,400,000 Terramar Area Coastal Improvements - - - - - - - Vallecitos Interceptor Sewer Cleaning and CCTV 350,000 500,000 - - - - - Village and Barrio Traffic Circles 660,001 - - - - - - Villas Sewer Lift Station Replacement 1,329,001 - - - - - - Vista Carlsbad Interceptor - Agua Hedionda LS and Forcemain (VC12-VC13)- 104,000 75,000 75,000 75,000 - - Vista Carlsbad Interceptor - Buena Vista Lift Station Improvements 86,000 31,000 598,000 598,000 22,000 - 300,000 Vista Carlsbad Interceptor - Reach VC3 - - - - - - - Vista Carlsbad Interceptor - Rehabilitation (VC1 and VC2)231,000 - 80,000 140,000 - - - Vista/Carlsbad Interceptor - Point Repair Reaches (VC13 & VC14)200,000 2,800,000 - - - - - Total Project Expenditures 99,782,352 16,498,515 18,106,100 16,395,300 10,605,900 10,636,600 150,634,800 ENDING FUND BALANCE N/A (3,036,370) (12,398,343) (19,870,355) (21,402,464) (22,683,475) (61,103,628) SEWER CONNECTION FEE FUND SEWER REPLACEMENT FUND I-35 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 67,578 1,327,327 1,689,699 3,066,344 4,189,459 6,045,451 REVENUES Developer Fees 2,885,562 4,202,373 1,566,645 1,213,115 1,945,992 28,426,477 Total Revenues N/A 2,885,562 4,202,373 1,566,645 1,213,115 1,945,992 28,426,477 CAPITAL PROJECTS Avenida Encinas Coastal Rail Trail and Pedestrian Improvements 5,347,654$ 3,000,000 - - - - - Carlsbad Boulevard Realignment - Manzano Drive to Island Way - - - - - - 3,681,000 Carlsbad Village Drive Widening - Pontiac Drive to Victoria Avenue - - - - - - - El Camino Real and Cannon Road Intersection Improvements 3,536,000 - - - - - - El Camino Real Right Turn Lane to East Bound Alga Road - - - - - - 438,000 El Camino Real Widening - Arenal Road to La Costa Avenue 7,250,001 - 2,000,000 - - - - Melrose Drive Right Turn Lane to West Bound Palomar Airport Road 911,002 (728,286) 50,000 100,000 - - 729,000 Palomar Airport Road and College Boulevard Improvements 1,295,501 (735,901) - - - - - Sidewalk/Street Construction Program 3,300,000 - - - - - 3,725,000 Terramar Area Coastal Improvements 6,650,004 - 1,700,000 - - - - Traffic Impact Fee Funds to CFD #1 - 90,000 90,000 90,000 90,000 90,000 900,000 Traffic Impact Fee Update 270,001 - - - - - - Traffic Monitoring Program 1,745,415 - - - - - - Valley and Magnolia Complete Streets 3,536,207 - - - - - - Total Project Expenditures 33,841,785 1,625,813 3,840,000 190,000 90,000 90,000 9,473,000 ENDING FUND BALANCE N/A 1,327,327 1,689,699 3,066,344 4,189,459 6,045,451 24,998,928 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 7,252,997 1,041,966 (1,836,497) (1,693,149) (1,446,614) (3,817,508) REVENUES Transportation Taxes 5,849,095 5,926,537 6,008,348 6,171,535 6,324,106 63,806,824 Total Revenues N/A 5,849,095 5,926,537 6,008,348 6,171,535 6,324,106 63,806,824 CAPITAL PROJECTS ADA Improvement Program 3,330,002$ 715,000 375,000 715,000 175,000 820,000 4,450,000 Barrio Street Lighting 2,560,000 - 1,030,000 - - - - Carlsbad Boulevard and Tamarack Avenue Pedestrian Improvements 1,054,003 - - - - - - Carlsbad Boulevard Pedestrian Lighting 1,325,000 (1,254,934) - - - - - Carlsbad Boulevard Realignment - Manzano Drive to Island Way - 1,000,000 1,000,000 - - - 932,000 Carlsbad Village Drive and Grand Avenue Pedestrian and Crossing Improvements - - - - - 400,000 - Carlsbad Village Drive Widening - Pontiac Drive to Victoria Avenue - - - - - - - Chestnut Avenue Complete Street Improvements - Valley to Pio Pico - - - - - 250,000 - Chestnut Complete Street I-5 to Railroad Project Study 85,000 (85,000) - - - 250,000 - Christiansen Way Improvements - - - - - - - College Boulevard Extension 1,205,001 (215,619) - - - - 216,000 Coordinated Traffic Signal Program 2,583,980 - - - - - - Coordinated Traffic Signal Program 1,000,001 - - - - - - El Camino Real Widening - Poinsettia Lane to Camino Vida Roble 3,155,000 - - - - - - El Camino Real Widening - Sunny Creek to Jackspar 5,010,000 600,000 - - - - - Kelly Drive and Park Drive Complete Street Improvements 4,675,001 - 1,500,000 - - - - Pavement Management Program 20,336,566 6,600,000 3,950,000 4,200,000 4,800,000 5,400,000 16,500,000 Pavement Management Program 17,296,475 950,000 950,000 950,000 950,000 950,000 9,500,000 South Carlsbad Coastline 2,779,027 (1,074,321) - - - - - State Street and Grand Avenue Road Improvements - - - - - 325,000 - Street Lighting Replacement Program 3,325,002 - - - - - - Terramar Area Coastal Improvements 2,000,000 - - - - - - Valley and Magnolia Complete Streets 1,200,000 3,000,000 - - - - - Valley Street Traffic Calming - - - - - 300,000 - Village and Barrio Traffic Circles 1,024,999 1,825,000 - - - - - Total Project Expenditures 73,945,057 12,060,125 8,805,000 5,865,000 5,925,000 8,695,000 31,598,000 ENDING FUND BALANCE N/A 1,041,966 (1,836,497) (1,693,149) (1,446,614) (3,817,508) 28,391,316 TRAFFIC IMPACT FEES (TIF) TRANSNET - LOCAL I-36 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 26,911,861 36,946,558 35,709,223 36,989,253 36,740,479 38,671,725 REVENUES Developer Fees 1,826,697 2,975,665 1,880,029 1,600,226 1,931,246 17,179,087 Total Revenues N/A 1,826,697 2,975,665 1,880,029 1,600,226 1,931,246 17,179,087 CAPITAL PROJECTS College Boulevard - Cannon Road To Badger Lane (375 Zone)278,383$ - 1,400,000 - - - - College Boulevard - Cannon Road To Badger Lane (490 Zone)312,600 - 1,400,000 - - - - Crestview Drive Transmission Main - 171,000 551,000 - - - - Desalinated Water Flow Control Facility No. 5 11,569,601 (10,000,000) - - - - - Hydroelectric Generation at Water Facilities 461,000 39,000 - - - - - Limited Access Pipeline Relocation Program - 1,122,000 - - - - - Maerkle Reservoir Transmission Main - - 262,000 - 1,849,000 - - Palomar Airport Waterline Realignment - - - - - - - Poinsettia Lane - Cassia Road to Skimmer Court (Reimbursement Agreement)600,000 - - - - - - Pressure Reducing Station Program - 600,000 600,000 600,000 - - - Rancho Carlsbad Groundwater Supply 200,000 (200,000) - - - - 1,000,000 San Luis Rey Mission Basin Groundwater Supply 20,000 (20,000) - - - - 500,000 SCADA Improvements - 80,000 - - - - - Water Modeling 375,000 - - - - - - Water System Rehabilitation and Replacement - - - - - - - Total Project Expenditures 13,816,585 (8,208,000) 4,213,000 600,000 1,849,000 - 1,500,000 ENDING FUND BALANCE N/A 36,946,558 35,709,223 36,989,253 36,740,479 38,671,725 54,350,812 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39BEGINNING FUND BALANCE N/A (14,978,642) 59,182 59,182 59,182 59,182 59,182 REVENUES Recycled Water Loans and Grants 15,387,825 - - - - - Total Revenues N/A 15,387,825 - - - - - CAPITAL PROJECTS Carlsbad Water Recycling Facility Improvements -$ 350,000 - - - - - Carlsbad Water Recycling Facility (Encina Capital Projects)- - - - - - - C-Tank Access Road Repair and Electrical Improvements 50,000 - - - - - - Total Project Expenditures 50,000 350,000 - - - - - ENDING FUND BALANCE N/A 59,182 59,182 59,182 59,182 59,182 59,182 WATER CONNECTION - POTABLE WATER CONNECTION - RECYCLED I-37 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 16,875,418 16,708,987 17,066,580 18,886,056 13,624,018 14,675,451 REVENUES Transfer from Water Operating Fund 6,659,237 6,388,592 6,459,476 6,391,962 6,451,433 64,594,191 Total Revenues N/A 6,659,237 6,388,592 6,459,476 6,391,962 6,451,433 64,594,191 CAPITAL PROJECTS Abandon Potable Services (New Recycled Services)1,175,827$ - - - - - - Carlsbad Boulevard Waterline Replacement at Terramar 4,730,002 - - - - - - Carlsbad Municipal Water District Building and Site Improvements - 300,000 100,000 - - - - Carlsbad Water Recycling Facility (Encina Capital Projects)599,943 - - - - - - Cathodic Protection Program 1,986,702 190,000 190,000 190,000 190,000 - 540,000 Crestview Drive Transmission Main 605,000 (605,000) - - - - - El Camino Real Widening - Arenal Road to La Costa Avenue - - - - - - - Fire Flow Capacity System Improvements 625,000 - - - - - - Limited Access Pipeline Relocation Program 2,701,000 1,428,000 600,000 - - - - Maerkle Facility Improvements 3,591,201 200,000 - - - - - Maerkle Reservoir Solar Project 249,170 232,000 - - - - - Maerkle Reservoir Transmission Main 195,001 - 278,000 - 2,396,000 - - Normally Closed Valve (Install Motorized Valve)1,966,000 - - - - - - Orion Center 500,000 (321,333) - - - - - Palomar Airport Waterline Realignment 2,333,000 - - - - - - Pressure Reducing Station Program 6,431,037 - - - 600,000 600,000 6,000,000 Rancho Carlsbad Groundwater Supply 200,000 (200,000) - - - - 1,000,000 Recycled Water Phase 3 - Reservoir 180,002 - - - - - - Reservoir Repair and Maintenance Program 7,890,000 - - - - - 6,680,000 San Luis Rey Mission Basin Groundwater Supply - - - - - - - Santa Fe II Inlet Pipeline 529,650 - - - - 350,000 2,020,000 Santa Fe II Reservoir Site Electrical Improvements 293,581 40,000 - - - - - SCADA Improvements 9,545,600 532,000 - - - - - Tri-Agency Water Transmission Pipeline Replacement 2,328,973 - 483,000 - 4,018,000 - 5,186,000 Valley and Magnolia Complete Streets 71,000 650,000 - - - - - Water Infrastructure Condition Assessment Program 2,600,001 420,000 420,000 450,000 450,000 450,000 4,730,000 Water Loss Monitoring Program 167,088 - - - - - - Water System Rehabilitation and Replacement 16,058,372 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 40,970,000 Water Valve Repair/Replacement Program 8,819,999 960,000 960,000 1,000,000 1,000,000 1,000,000 10,760,000 Total Project Expenditures 76,373,150 6,825,667 6,031,000 4,640,000 11,654,000 5,400,000 77,886,000 ENDING FUND BALANCE N/A 16,708,987 17,066,580 18,886,056 13,624,018 14,675,451 1,383,642 PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15 YEARS 2024-25 2025-26 2026-27 2027-28 2028-29 2030-39 BEGINNING FUND BALANCE N/A 13,363,612 10,572,599 9,576,599 10,363,599 11,085,599 11,936,599 REVENUES Transfer from Recycled Water Operating Fund - - 1,500,000 1,500,000 1,650,000 16,500,000 Total Revenues N/A - - 1,500,000 1,500,000 1,650,000 16,500,000 CAPITAL PROJECTS C-Tank Access Road Repair and Electrical Improvements 250,000$ - - - - - - Carlsbad Municipal Water District Building and Site Improvements - 120,000 40,000 - - - - Carlsbad Water Recycling Facility (Encina Capital Projects)4,824,711 516,000 431,000 188,000 253,000 274,000 3,290,000 Carlsbad Water Recycling Facility Improvements - - - - - - - Carlsbad Water Recycling Facility Irrigation and Landscape 35,000 - - - - - - Carlsbad Water Recycling Facility Roof Replacement 549,025 - - - - - - Cathodic Protection Program 100,000 100,000 - - - - - Orion Center 199,999 (192,987) - - - - - Recycled Water Condition Assessment Program 800,001 - 50,000 50,000 50,000 50,000 590,000 Recycled Water Phase 3 - Reservoir 6,852,997 - - - - - - Recycled Water Pipeline Replacement 350,000 350,000 350,000 350,000 350,000 350,000 5,060,000 Recycled Water Valve and Appurtenance Replacement Program 380,000 - 125,000 125,000 125,000 125,000 1,330,000 Transfer to Recycled Water Operating Fund - 1,500,000 - - - - - Reservoir Condition Assessment and Repair Program 200,000 - - - - - - SCADA Improvements 1,996,399 398,000 - - - - - Total Project Expenditures 16,538,133 2,791,013 996,000 713,000 778,000 799,000 10,270,000 ENDING FUND BALANCE N/A 10,572,599 9,576,599 10,363,599 11,085,599 11,936,599 18,166,599 WATER REPLACEMENT - POTABLE WATER REPLACEMENT - RECYCLED I-38 I-39 GLOSSARY OF CAPITAL PROJECT FUNDING SOURCES BTD 2 – Bridge and Thoroughfare District No. 2 developer fees are paid to partially fund the Poinsettia Lane and Aviara Parkway street construction project. BTD 3 – Bridge and Thoroughfare District No. 3 developer fees are paid to partially fund Cannon Road improvements. CDBG – Community Development Block Grants are allocated by the federal government to help develop viable urban communities for low and moderate income households. CFD 1 – The City of Carlsbad Community Facilities District No. 1 (Mello-Roos) funds civic projects, I-5 interchange projects, and road segments. Federal Grants – Federal Grants such as the Schools Traffic Safety Program. Gas Tax – Gas Tax revenues for street projects are received under the Streets & Highways Code of the State of California. Gas Tax 1B – Gas Tax revenues for street projects specifically for road maintenance and rehabilitation are received under the Streets & Highways Code of the State of California. General Capital Construction – General Capital Construction funds, created through fund transfers from the city's General Fund, are used to fund various municipal and other capital projects. Infrastructure Replacement Fund (IRF) – Annual transfers from the General fund pay for major maintenance and replacement of the city’s infrastructure. Other – Sources include revenues related to pending financing districts, property owner contributions, and contributions from other agencies. Park-in-Lieu (PIL) – Park-in-Lieu Fees are charged to developers for park acquisition and development. PIL fees are segregated by quadrant to fund park projects in those quadrants. I-40 Planned Local Drainage (PLD) – Drainage facilities necessitated by growth are paid from developer Planned Local Drainage Fees. PLD fees are segregated by drainage area. Public Facilities Fees (PFF) – Public Facilities Fees are charged to developers to fund civic facilities, park development, streets, traffic signals, and other facilities. Sewer Connection – Development fees include Sewer Connection charges for expansion of sewer lines and facilities. Sewer Replacement – Sewer Replacement is part of sewer user fees and pays for repair and replacement of the city's existing sewer system. State Grants – State Grants such as Veteran’s Memorial Park funding. Transportation Development Act (TDA) – City street and bicycle projects can receive funding from Transportation Development Act sales tax receipts. Traffic Impact Fees (TIF) – Developer Traffic Impact Fees are used for various street construction and improvement projects. I-55 TransNet (BIKE, -HWY, -LOCAL, -STP) – Receipts of County Sales Taxes allocated by the San Diego Regional Transportation Commission finance various bicycle, freeway interchange and local road improvement projects. Water Connection – Development fees include Major Facility Fees used to fund expansion of water lines and ancillary water facilities. Water Replacement – Water Replacement funds are included in water utility rates and pay for the repair and replacement of existing potable water lines and facilities. Water Recycled – Revenues used to fund new Recycled Water projects; revenues for Phase III expansion includes grant and loan funds. Water Recycled Replacement – Recycled Water Replacement funds are included in utility rates and pay for the repair and replacement of existing recycled water lines and facilities. Zone 5, 13, 16, 17, 18 Park Fee (ZONE 5) – Fees paid by development in Local Facilities Management Zones 5, 13, 16, 17 and 18 to fund a Business Park Recreational Facility in the city's industrial corridor. The City of Carlsbad Capital Improvement Program reflects the city’s ongoing commitment J-1 PLANNED MAJOR CAPITAL OUTLAY ITEMS FISCAL YEAR 2024-25 Department Item Description Quantity One-Time Cost Golf Course Dining Room Chairs 1 50,000Fencing Replacement 1 60,000 Bunker Renovations 1 60,000 Cath Path Repairs 1 60,000Banquet & Kitchen Equipment 1 15,000 Concrete Cap Replacements: Clubhouse & GCM Building 1 25,000 Clubhouse & GCM Building Paint - Interior 1 40,000Clubhouse & GCM Building Paint - Exterior 1 40,000 Reslurry Parking Lot 1 50,000GCM Equipment - Greens Mowers 1 77,000GCM Equipment - Set Up Carts 1 28,000 Tree Replacement 1 40,000Bathroom Updates: Snack Bar & Golf Course 1 15,000GCM Building Netting: Planning & Permitting 1 25,000 Leveling of Tee Boxes 1 60,000Resodding of Green Collars 1 60,000 Driving Range Grass Tee Expansion 1 60,000 Cart Barn: Flourescent Light Conversion to LED 1 25,000Canyons Patio Bromic Heater Installation 1 60,000 Golf Course Subtotal 19 $850,000 Fleet Replacement Community Development: Pickup Truck 3 165,000 Fire: Fire Engines 2 2,150,722Fire: Pickup Truck 1 61,207Fire: Ambulance 1 349,800 Library & Cultural Arts: Sedan 1 37,178Parks & Recreation: Pickup Truck 5 165,000Police: Sedan 2 80,000 Police: Utility Vehicles 11 832,074Police: Pickup Truck 1 65,000 Public Works: Pickup Truck 7 570,409 Public Works: Cargo Van 2 122,184Fleet Replacement Subtotal 36 $4,598,574 Information Technology Replacement Firewall 1 150,850Infrastructure5170,676 Router 1 15,527Switches491,494Information Technology Subtotal 11 $428,547 Major Capital Outlay Grand Total 66 $5,877,121 *Major Capital Outlay only includes items of $10,000 or greater. (Greater than $10,000) J-2 GENERAL FUND ASSET REPLACEMENT SCHEDULE FOR FISCAL YEARS 2026-35 De p a r t m e n t Eq u i p m e n t T y p e FY 2 5 - 2 6 F Y 2 6 - 2 7 F Y 2 7 - 2 8 F Y 2 8 - 2 9 F Y 2 9 - 3 0 F Y 3 0 - 3 1 F Y 3 1 - 3 2 F Y 3 2 - 3 3 F Y 3 3 - 3 4 F Y 3 4 - 3 5 Fir e Fu r n i t u r e ( m i s c . ) 23 , 0 0 0 50 , 0 0 0 27 , 0 0 0 Fir e Ply m o v e n t V e h i c l e E x h a u s t E x t r a c t i o n S y s t e m 35 0 , 0 0 0 Fir e EK G M o n i t o r s 76 0 , 0 0 0 Fir e Ex t r i c a t i o n e q u i p m e n t 70 , 0 0 0 70 , 0 0 0 70 , 0 0 0 Fir e Tr e n c h r e s c u e e q u i p m e n t 10 0 , 0 0 0 Fir e Me c h a n i c a l C P R d e v i c e s 15 0 , 0 0 0 Fir e Em e r g e n c y M e d i c a l S e r v i c e s ( E M S ) p o w e r l i f t g u r n e y s 80 0 , 0 0 0 Fir e 80 0 m H z ( m e g a h e r t z ) r a d i o s - m o b i l e / b a s e s t a t i o n 52 , 0 0 0 Fir e VH F ( v e r y h i g h f r e q u e n c y ) r a d i o s - p o r t a b l e 25 0 , 0 0 0 Fir e 80 0 m H z ( m e g a h e r t z ) r a d i o s - p o r t a b l e 82 5 , 0 0 0 Fir e PP E e x t r a c t o r s / d r y i n g c a b i n e t s 18 0 , 0 0 0 Fir e Se l f - C o n t a i n e d B r e a t h i n g A p p a r a t u s ( S C B A ) c o m p r e s s o r s 30 0 , 0 0 0 Li b r a r y & C u l t u r a l A r t s Fu n d i n g f o r P u b l i c A r t M a i n t e n a n c e 16 5 , 0 0 0 Pa r k s & R e c r e a t i o n Ir r i g a t i o n C o n t r o l l e r R e p l a c e m e n t i n M e d i a n s ( 1 2 . 5 % o f T o t a l N e e d ) 11 2 , 0 0 0 Pa r k s & R e c r e a t i o n Fe n c i n g , C h a s e 13 9 , 9 0 0 Pa r k s & R e c r e a t i o n Sp o r t L i g h t C o n t r o l l e r , L a g u n a R i v i e r a 16 0 , 0 0 0 Pa r k s & R e c r e a t i o n Li g h t i n g C o n t r o l l e r s , A v i a r a 16 0 , 0 0 0 Pa r k s & R e c r e a t i o n Sp o r t L i g h t C o n t r o l l e r s , A v i a r a 16 0 , 0 0 0 Pa r k s & R e c r e a t i o n Ga z e b o , H o l i d a y P a r k 20 0 , 0 0 0 Pa r k s & R e c r e a t i o n Sc o r e b o a r d s , C h a s e 22 5 , 0 0 0 Pa r k s & R e c r e a t i o n Ba c k s t o p s , P o i n s e t t i a 24 0 , 0 0 0 Pa r k s & R e c r e a t i o n Fe n c i n g B l a c k C h a i n l i n k , A l g a N o r t e 52 6 , 6 0 0 Pa r k s & R e c r e a t i o n Ir r i g a t i o n C o n t r o l l e r R e p l a c e m e n t i n M e d i a n s ( 1 2 . 5 % o f T o t a l N e e d ) 11 2 , 0 0 0 Pa r k s & R e c r e a t i o n Ir r i g a t i o n C o n t r o l l e r R e p l a c e m e n t i n M e d i a n s ( 1 2 . 5 % o f T o t a l N e e d ) 11 2 , 0 0 0 Pa r k s & R e c r e a t i o n Ga z e b o , M a g e e 20 0 , 0 0 0 Pa r k s & R e c r e a t i o n Sp o r t L i g h t C o n t r o l l e r , C a l a v e r a 24 0 , 0 0 0 Pa r k s & R e c r e a t i o n Pa r k i n g L o t A s p h a l t / S t r i p i n g , M a g e e 11 0 , 4 4 8 Pa r k s & R e c r e a t i o n Ir r i g a t i o n C o n t r o l l e r R e p l a c e m e n t i n M e d i a n s ( 1 2 . 5 % o f T o t a l N e e d ) 11 2 , 0 0 0 Pa r k s & R e c r e a t i o n Lo c h i n v a r H i g h E f f i c i e n c y C o m p e t i t i o n p o o l h e a t e r s , A l g a N o r t e 22 0 , 7 6 0 Pa r k s & R e c r e a t i o n Sc o r e B o a r d s , A l g a N o r t e 22 5 , 0 0 0 Pa r k s & R e c r e a t i o n Fe n c i n g , C a l a v e r a 28 8 , 2 5 0 Pa r k s & R e c r e a t i o n Be a c h A c c e s s I n f r a s t r u c e r e p l a c e m e n t ( 5 0 % o f T o t a l N e e d ) 10 7 , 8 7 5 Pa r k s & R e c r e a t i o n Ir r i g a t i o n C o n t r o l l e r R e p l a c e m e n t i n M e d i a n s ( 1 2 . 5 % o f T o t a l N e e d ) 11 2 , 0 0 0 Pa r k s & R e c r e a t i o n Pa r k i n g L o t A s p h a l t / S t r i p i n g , T a m a r a c k / F r a z e e S e a w a l l 30 0 , 2 5 8 Pa r k s & R e c r e a t i o n Fe n c i n g , P o i n s e t t i a 57 4 , 3 0 0 Pa r k s & R e c r e a t i o n Fa b r i c S h a d e C o v e r s - P i c n i c A r e a s , C a l a v e r a 10 0 , 0 0 0 Pa r k s & R e c r e a t i o n Be a c h A c c e s s I n f r a s t r u c e r e p l a c e m e n t ( 5 0 % o f T o t a l N e e d ) 10 7 , 8 7 5 Pa r k s & R e c r e a t i o n Ir r i g a t i o n C o n t r o l l e r R e p l a c e m e n t i n M e d i a n s ( 1 2 . 5 % o f T o t a l N e e d ) 11 2 , 0 0 0 Pa r k s & R e c r e a t i o n Sa f e t y L i g h t i n g , A v i a r a 12 0 , 0 0 0 Pa r k s & R e c r e a t i o n St a i r w a y s , L a C o s t a C a n y o n 12 5 , 0 0 0 Pa r k s & R e c r e a t i o n Fe n c i n g ( G a l v i n i z e d C h a i n l i n k ) , A v i a r a 12 9 , 5 0 0 Pa r k s & R e c r e a t i o n Fe n c i n g , S t a g e c o a c h 37 7 , 1 8 0 Pa r k s & R e c r e a t i o n Fe n c i n g ( V i n y l C h a i n l i n k ) , A v i a r a 38 9 , 6 8 0 Pa r k s & R e c r e a t i o n Ir r i g a t i o n C o n t r o l l e r R e p l a c e m e n t i n M e d i a n s ( 1 2 . 5 % o f T o t a l N e e d ) 11 2 , 0 0 0 Pa r k s & R e c r e a t i o n Ir r i g a t i o n C o n t r o l l e r R e p l a c e m e n t i n M e d i a n s ( 1 2 . 5 % o f T o t a l N e e d ) 11 2 , 0 0 0 Pa r k s & R e c r e a t i o n Fe n c i n g , L e v a n t e 14 7 , 8 4 0 Pa r k s & R e c r e a t i o n Sh a d e C o v e r s , P i n e 20 0 , 0 0 0 Pa r k s & R e c r e a t i o n Fo u n t a i n , S t r e e t s c a p e s 20 0 , 0 0 0 Pa r k s & R e c r e a t i o n Sh a d e C o v e r s , L e o C a r r i l l o R a n c h 10 0 , 0 0 0 Po l i c e Ra d i o s 3,0 0 0 , 0 0 0 Po l i c e Li c e n s e P l a t e R e a d e r s 1, 8 5 0 , 0 0 0 Po l i c e Ha n d g u n s - P a t r o l 13 8 , 0 0 0 Po l i c e Ta s e r s 78 1 , 0 0 0 Po l i c e Tr i m b l e F o r e n s i c s T r a f f i c S c e n e P r o c e s s i n g 10 0 , 0 0 0 Po l i c e Ba l l i s t i c H e l m e t s & P l a t e C a r r i e r s 23 7 , 0 0 0 Po l i c e E- C i t e P r i n t e r s 10 6 , 0 0 0 To t a l 2, 4 6 1 , 5 0 0 3,7 1 4 , 0 0 0 3, 5 6 6 , 4 5 8 2,0 8 3 , 4 3 3 1,4 6 1 , 2 3 5 13 9 , 0 0 0 1,3 3 2 , 0 0 0 1, 91 1 , 8 4 0 68 6 , 0 0 0 70 , 0 0 0 No t e s : 1) I n c l u d e s m a j o r e q u i p m e n t o v e r $ 1 0 0 , 0 0 0 i n i n d i v i d u a l o r c o l l e c t i v e v a l u e . 2) D o e s n o t i n c l u d e a n y i t e m s i n c l u d e d i n t h e F l e e t o r I n f o r m a t i o n T e c h n o l o g y R e p l a c e m e n t F u n d s , o r t h e C a p i t a l I m p r o v e m e n t o r S t r a t e g i c D i g i t a l T r a n s f o r m a t i o n I n v e s t m e n t P r o g r a m s . J-3 FUND CLASSIFICATIONS AND DESCRIPTIONS The financial operations of the city are organized into funds for which budgets are prepared. These funds are grouped into three major categories: Governmental, Proprietary, and Fiduciary. Governmental Funds Governmental funds are made up of the General Fund, Special Revenue Funds and Capital Project Funds. The General Fund (001) is used to account for all financial resources necessary to carry out basic governmental activities of the city that are not accounted for in another fund. The General Fund supports essential city services such as police and fire protection, street maintenance, libraries, parks and open space management. Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures for specified purposes. Affordable Housing (133) – Collects fees generated from the Inclusionary Housing In-Lieu Fee and the sale of affordable housing credits that satisfy a developer’s inclusionary housing obligation as well as loan repayments from existing developments. With these funds, the city provides affordable housing programs and low income and homeless services support and financial assistance for residential developments that provide housing opportunities to low income households. Agricultural Mitigation Fee (171) – The Agricultural Conversion Mitigation Fee program funds projects that improve agricultural lands for continued agricultural production, protect and enhance the coastal and lagoon environment, improve lagoon nature centers and restore beaches for public use. Buena Vista Channel Maintenance District (163) – Ensures adequate funds are collected from property owners within the district to administer and maintain the Buena Vista Creek Channel from Jefferson Street east to the South Vista Way bridge. Citizens’ Option for Public Safety (COPS) (123) – Supplemental Law Enforcement Services Funds to be spent providing “front line police services” such as anti-gang efforts, crime prevention and juvenile justice programs. Community Activity Grants (150) – Provides city-funded grants to community service groups. Community Development Block Grant (391) – Federal funds provided to the city to develop viable urban communities through the provision of decent housing, a suitable living environment and by expanding economic opportunities for lower income persons. Continuum of Care (192) – Funds from the US Department of Housing and Urban Development to support rapid rehousing of individuals experiencing homelessness. J-4 Cultural Arts Donations (148) – Funds used to promote and support the programs and activities of the city’s Cultural Arts Office. Encampment Resolution Fund (189) – Funds from the California Department of Housing and Community Development to provide services and supports to people experiencing homelessness in encampments that results in meaningful paths to safe and stable housing. Habitat Mitigation Fee (172) – Funding for conservation of certain parcels totaling approximately 300 acres which lie in the unincorporated area to the southeast of Carlsbad, and which are essential to the biological viability of the Habitat Management Plan. Library and Arts Endowments (175) – Donations are used to support Library programming and activities. Library Gifts & Bequests (145) – Includes Friends of the Library annual donations and Library Gifts and Bequests. Donations are used to support Library programming and activities. Lighting and Landscaping District 2 (164) – This maintenance and assessment district funds the costs of streetlights, street trees and medians within the district boundaries covering newer developments in the city. Local Cable Infrastructure (138) – Funds used for the associated capital costs of the city’s own cable channel and other city outreach and communications programs. Franchise fees from cable and internet providers make up the revenue for this fund. Local Housing Allocation Fund (136) – Funds from California’s Permanent Local Housing Allocation Program established in 2017 to provide funding for affordable housing, funded by a fee levied on certain real-estate transactions. Median Maintenance District (161) – Provides landscape and irrigation maintenance for approximately 68 acres of median planters and nine acres of developed parkways, including the Downtown Carlsbad Village area. Opioid Settlement Fund (128) – Funds from the California Opioid Settlements utilized for opioid remediation activities. Permanent Local Housing Allocation (136) – Funds from the California Department of Housing and Community Development to assist local governments with housing-related projects and programs that assist in addressing the unmet housing needs of their local communities. Police Asset Forfeiture (122) – Funds received from the police department’s drug enforcement activities which are restricted for use in supporting police activities to include the acquisition of equipment, supplies or services. Public Safety Grants (124) – Used to purchase equipment, supplement staffing costs and assist with training. J-5 Recreation Donations (149) – These donations provide supplemental funding for Parks & Recreation events, programs and facilities. Rental Assistance/Section 8 Program (190) – Federal funding to provide vouchers to help low income residents pay rent. Senior Program Donations (143) – These donations provide funding for nutrition, transportation, activities, events and other programs benefiting Carlsbad's senior population. Street Lighting Maintenance District (162) – The street lighting maintenance assessment district provides funding for the operation and maintenance of all city-accepted streetlights within the public right-of-way. Street Tree Maintenance District (160) – The street tree maintenance assessment district provides partial funding for the operation and maintenance of all city-accepted street trees within the public right-of-way, including specialized maintenance for street trees in the Downtown Carlsbad Village area. Tyler Court Apartments (806) – Provides affordable housing to senior households with incomes at 30% and 50% of the San Diego County Area median incomes. Capital Project Funds are used to account for specific revenues that are restricted to expenditures for capital project purposes. Bridge and Thoroughfare District 2 (BTD 2) (362) – Developer fees are paid to partially fund the Poinsettia Lane and Aviara Parkway street construction project. Bridge and Thoroughfare District 3 (BTD 3) (363) – Developer fees are paid to partially fund Cannon Road improvements. Community Facilities District 1 (CFD 1) (430) – Mello-Roos funds specific civic projects, I-5 interchange projects and road segments. Gas Tax (152) – Gas Tax revenues for street projects received under the Streets & Highways Code of the State of California. Gas Tax Road Maintenance and Rehabilitation (153) – Gas Tax revenues for street projects, which can only be used for road maintenance and rehabilitation, received under the Streets & Highways Code of the State of California. General Capital Construction (GCC) (300) – General Capital Construction funds, created through annual fund transfers from the city's General Fund, are used to fund various municipal and other capital projects. Grants-Federal (392) – Federal Grants such as funding for Village and Barrio traffic circles. Grants-State (389) – State grants such as Veteran’s Memorial Park funding. J-6 Industrial Corridor Park Fees (334) – Fees paid by development in Local Facilities Management Zones 5, 13, 16, 17 and 18 to fund a Business Park Recreational Facility in the city's industrial corridor. Infrastructure Replacement (IRF) (370) – Annual transfers from the General Fund to pay for major maintenance and replacement of the city’s infrastructure. Park in-Lieu Fees (PIL) (330-333) – Park-in-Lieu fees are charged to developers for park acquisition and development. PIL fees are segregated by quadrant to fund park projects in those quadrants. Parking in-Lieu Fees (315) – Funding collected from new developments in Carlsbad Village that do not provide adequate parking facilities for use in construction of future parking facilities and improvements. Planned Local Drainage Area Fees (PLD) (350-353) – Drainage facilities necessitated by growth are paid from developer Planned Local Drainage Fees. PLD fees are segregated by drainage area. Public Facilities Fees (PFF) (320) – Public Facilities Fees are charged to developers to fund civic facilities, park development, streets, traffic signals, and other facilities. Technology Investment Capital (375) – Technology Investment Capital funds, created through annual fund transfers from the city's General Fund, are used to fund various technology projects. Traffic Impact Fees (TIF) (310) – Developer Traffic Impact Fees are used for various street construction and improvement projects. TransNet (342) – Receipts of county sales taxes allocated by the San Diego Regional Transportation Commission to finance various bicycle, freeway interchange and local road improvement projects. Proprietary Funds Proprietary funds are Internal Service Funds and Enterprise Funds. Internal Service Funds are used to account for operations internal to the city where the intent is that the cost of providing services to the city department is financed primarily through department user charges. Workers’ Compensation (611) – Management of workers’ compensation insurance and claims. Risk Management (612) – Management of vehicle and city liability insurance. Vehicle Maintenance (620) – Vehicle maintenance and operations of citywide fleet, including gas and oil charges. Vehicle Replacement (621) – Funding for the replacement of vehicles currently in operation, based on the expected replacement cost at the end of vehicles useful life. J-7 Information Technology Operations (640) – Maintenance and operations of citywide technology assets. Information Technology Replacement (641) – Funding for the replacement of current technology assets based on the expected replacement cost at the end of the anticipated useful life. Enterprise Funds are used to account for operations that are financed and operated similar to a private business where the intent is that the cost of providing services to the public is financed primarily through user charges. Potable Water Operations (501) – Carlsbad Municipal Water District (CMWD), a subsidiary of the city, provides potable water service to approximately 85% of the city. Potable Water Connection (506) – Development fees include Major Facility Fees used to fund expansion of potable water lines and ancillary water facilities. Potable Water Replacement (505) – Water replacement charges are included in water utility rates and pay for the repair and replacement of existing potable water lines and facilities. Recycled Water Operations (502) – Funds used to operate and maintain critical infrastructure systems and to provide the safe delivery of conservation outreach and treated irrigation water. Recycled Water Connection (507) – Revenues used to fund new Recycled Water projects; revenues for Phase III expansion includes grant and loan funds. Recycled Water Replacement (508) – Recycled Water Replacement funds are included in utility rates and pay for the repair and replacement of existing recycled water lines and facilities. Wastewater Operations (511) – The city operates and maintains a sanitary wastewater collection system, which covers approximately 65% of the geographic area of the city. Wastewater Connection (512) – Development fees include Sewer Connection charges for expansion of sewer lines and facilities. Wastewater Replacement (515) – Sewer replacement charges are part of sewer user fees and pay for repair and replacement of the city's existing sewer system. Solid Waste Management (520) – Administers and monitors the solid waste contract and the Palomar Transfer Station agreement and is responsible for ensuring the waste reduction and recycling components of the Source Reduction and Recycling Element and Household Hazardous Waste Element comply with state mandated diversion and disposal requirements. Watershed Protection (521) – Fund dedicated to providing programs which enable stewardship of the city’s resources protecting our beaches, creeks, and lagoons. The Crossings Golf Course (572) – Funds used to cover the operations of the city’s municipal golf course. J-8 Fiduciary Fund Fiduciary funds are private purpose trust funds used to account for situations where the city’s role is purely custodial, such as the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments. Successor Agency to the Redevelopment Agency (801) – Responsible for administering enforceable obligations of the former Carlsbad Redevelopment Agency (RDA) including administration of housing loans and other debt obligations, completing existing projects and ultimately to wind down RDA operations over time. J-9 DEPARTMENT/FUND RELATIONSHIP Po l i c e De p a r t m e n t Fi r e De p a r t m e n t Pu b l i c Wo r k s Co m m u n i t y Se r v i c e s Ad m i n i s t r a t i v e Se r v i c e s Po l i c y & Le a d e r s h i p Ca p i t a l Pr o j e c t s General X X X X X X Capital Project Community Facilities District No. 1 X Infrastructure Replacement X Park-in-Lieu Fees/Park Development Fund X Enterprise Potable Water Operations X Potable Water Connection X Potable Water Replacement X Recycled Water Operations X Recycled Water Connection X Recycled Water Replacement X Wastewater Operations X Wastewater Connection X Wastewater Replacement X Special Revenue Affordable Housing X Agricultural Mitigation Fees X Buena Vista Channel Maintenance District X Citizens Option for Public Safety X Community Activity Grants X Community Development Block Grant X Continuum of Care X Cultural Arts Donations X Encampment Resolution Fund X Habitat Mitigation Fee X Library & Arts Endowments X Library Gifts & Bequests X Lighting & Landscaping District No. 2 X X Local Cable Infrastructure X Median Maintenance District X Opioid Settlement X Permanent Local Housing Allocation X Fund Budget Program Major Funds Non-Major Funds J-10 Po l i c e De p a r t m e n t Fi r e De p a r t m e n t Pu b l i c Wo r k s Co m m u n i t y Se r v i c e s Ad m i n i s t r a t i v e Se r v i c e s Po l i c y & Le a d e r s h i p Ca p i t a l Pr o j e c t s Special Revenue (continued) Police Asset Forfeiture X Public Safety Grants X X Recreation Donations X Rental Assistance/Section 8 Program X Senior Program Donations X Street Lighting Maintenance District X Street Tree Maintenance District X Tyler Court Apartments X Capital Project Bridge and Thoroughfare District No. 2 X Bridge and Thoroughfare District No. 3 X Gas Tax X Gas Tax Road Maintenance and Rehabilitation X General Capital Construction X Grants-Federal X Grants-State X Industrial Corridor Park Fees X Local Facilities Management/Park Fee Zone Fees (LFMZ)X Parking-in-Lieu Fees X Planned Local Drainage Area Fees (PLD)X Public Facilities Fees X Technology Investment Capital X Traffic Impact Fees (TIF)X TransNet X Internal Service Workers' Compensation X Risk Management X Vehicle Maintenance X Vehicle Replacement X Information Technology Operations X Information Technology Replacement X Enterprise The Crossings Golf Course X Solid Waste Management X Watershed Protection X Fiduciary Successor Agency to the Redevelopment Agency X X Major and non-major classifications as of June 30, 2023. Fund Budget Program J-11 GLOSSARY Actual Budget – What was actually spent during the budget year and the revenues that were actually received. The city may not spend more than what is approved in the adopted budget. Adopted Budget – The final approved budget that includes how much money may be spent from different city funds and how many positions are approved for the city’s workforce. Appropriation – A specific amount of money authorized by the City Council for an approved work program or individual project. Assessed Valuation – A dollar value placed on real estate or other property by the County of San Diego as a basis for levying property taxes. Balanced Budget – A budget in which planned expenditures do not exceed planned funds available. Beginning/Ending Fund Balance – Unencumbered resources available in a fund from the prior/current year after payment of the prior/current year expenses. Bond – A certificate of debt issued by an entity, guaranteeing payment of the original investment, plus interest, by a specified future date. Branch – An organizational unit comprised of departments. Examples include the Administrative Services Branch and Community Services Branch. Budget – An annual financial plan that identifies revenues, types and levels of services to be provided and the amount of funds that can be spent. Capital Budget – A budget that plans for the purchase, maintenance, or improvement of the city’s fixed assets such as buildings, parks, and roads. This budget includes significant expenses that are typically spread over several years. Capital Improvement Program – A multi-year financial plan containing proposed construction of physical assets such as park, street, sewage and recreation facilities. The 15-year program outlines the expenditure plan for future capital projects and the corresponding revenues to pay for those expenditures. Capital Outlay – Equipment (fixed assets) with a value $1,000 or more and an estimated useful life of more than one year, such as automobiles and office furniture, which appear in the operating budget. Carlsbad Community Vision – A set of nine core values and vision statements developed through consultation with the community in 2010 that serve as a guide for city leaders as they serve the city. Carryforwards – At the end of the fiscal year, if there is money left over, city staff may request to carry some or all of this money forward to the next fiscal year. This money may only be used for one- time expenses, like a special program or the purchase of supplies for a single event. Cost Allocation – A method used to charge General Fund overhead costs to other funds, such as Enterprise Funds and Internal Service Funds. Credit Rating – An independent assessment of whether the city is a good credit risk. Criteria include overall financial management, leadership stability, debt and the city’s economic base. Cities with a high rating can borrow money at a lower interest rate. The City of Carlsbad has the highest rating possible, which is AAA. J-12 Debt Service – The payment of principal and interest on borrowed funds such as bonds. Department – An organizational unit comprised of programs or divisions. Examples include the Finance and Human Resources departments. Encumbrance – A legal obligation to pay funds, an expenditure of which has not yet occurred. Enterprise Fund – A fund type established to account for the total costs of selected governmental facilities and services that are operated similar to private enterprises. Expenditure – The actual spending of funds set aside by appropriation for identified goods and services. Fee – A general term used for any charge levied by government for providing a service or permitting an activity. Fiscal Year – 12-month period designated as the budget year. Carlsbad's fiscal year is July 1 to June 30. Full-time Equivalent (FTE) – The hours worked by one employee on a full-time basis, used to convert the hours worked by several part-time employees into the hours worked by full-time employees. Two employees each working 1,000 hours equals 1.0 full-time equivalent employee. Fund – A set of interrelated accounts to record revenues and expenditures associated with a specific purpose. Fund Balance – The amount of financial resources available for use. General Fund – The primary fund used by the city for which revenues and expenditures are not legally restricted for use. Examples of departments operating within the General Fund include Fire, Library, and the City Manager's Office. Grant – Contributions of cash or other assets from another governmental agency to be used or expended for a specified purpose, activity, or facility. Growth Management Plan – A comprehensive approach to land-use planning ensuring controlled and managed growth within the city, while providing designated public facilities. Growth Management Standards – Acceptable service levels that have been established for 11 public facility categories. Interfund Transfers – Payments from one fund to another fund, primarily for work or services provided. Internal Service Fund – A fund that provides services to all city departments and bills the various other funds for services rendered. Examples are Fleet Maintenance, Information Systems and Workers’ Compensation. Maintenance and Operations – A general category used for classifying expenditures for materials, supplies and services that are normally used within the fiscal year. Operating Budget – The annual appropriation of funds for ongoing program costs, which include salaries, benefits, maintenance and operations and capital outlay items. Carlsbad's Operating Budget encompasses one fiscal year. Operating Costs – Estimated expenses that can be expected to occur following the construction of a Capital Improvement Project. J-13 Personnel Costs – Expenditures associated with providing the staff necessary to provide the desired levels of services, including both salary and benefit costs. Preliminary Budget – A draft of the city’s proposed budget that is presented to the public and the City Council about a month before the final budget will be presented for approval. Revenues – Amount of funds received from the collection of taxes, fees, permits, licenses, interest and grants during the fiscal year. Special Revenue Funds – A fund that collects revenues that are restricted by the city, state or federal government as the manner in which they may be spent. Strategic Digital Transformation Investment Program – A strategic plan for technology and digital transformation combined with project descriptions, costs, funding sources and timelines. It outlines a five-year expenditure plan for future digital transformation and technology projects and the corresponding revenues necessary to pay for them. Structural Deficit – When a city’s projected ongoing spending is more than its projected ongoing revenues. Surplus – The amount of money left over once all the city’s projected or actual spending is accounted for. Transfer – Transfers refer to the movement of money between different funds within the city’s financial accounts. These transfers are usually made to allocate resources appropriately, manage cash flow, support specific projects and ensure funds are available where they are needed most. Unassigned Fund Balance – The portion of a fund’s balance that is not restricted by legal or contractual requirements and is available for any purpose. J-14 ACRONYMS AARP – American Association of Retired Persons ADA – Americans with Disabilities Act ADC – Actuarial Determined Contributions AED – Automated External Defibrillator AB – Assembly Bill ALA – American Library Association AV – Audiovisual BCDDM – Build Capacity for Data-driven Decision Making BEAR – Business expansion, attraction and retention BTD – Bridge and Thoroughfare Benefit District CAD – Computer Aided Dispatch Cal-OSHA – California Occupational Safety and Health Administration CalPERS – California Public Employees Retirement System CalTrans – California Department of Transportation CalWORKs – California Work Opportunities and Responsibility to Kids CAD – Computer-aided Dispatch CAP – Climate Action Plan CCEA – Carlsbad City Employees' Association CCTV – Closed-circuit Television CDBG – Community Development Block Grant CEQA – California Environmental Quality Act CFA – Carlsbad Firefighters' Association CFD – Community Facilities District CIP – Capital Improvement Program CM&I – Construction Management & Inspection CMWD – Carlsbad Municipal Water District COPS – Citizens' Option for Public Safety Grant CPI – Consumer Price Index CPMA – Carlsbad Police Management Association CPOA – Carlsbad Police Officers' Association CPR – Cardiopulmonary Resuscitation CSMFO – California Society of Municipal Finance Officers CSS – Customer Self Service Portal CST – Crime Suppression Team CTBID – Carlsbad Tourism Business Improvement District CWEA – California Water Environment Association CWRF – Carlsbad Water Reclamation Facility DEI – Diversity, Equity and Inclusion DL – Driver’s License DOJ – Department of Justice DUI – Driving Under the Influence EAT – Enhance Accessibility and Transparency EIR – Environmental Impact Report EKG – Electrocardiogram EMS – Emergency Medical Services EMT – Emergency Medical Technician EOC – Emergency Operations Center EPA – Environmental Protection Agency ERP – Enterprise Resource Planning ESL – English as a Second Language EV – Electric Vehicle(s) EWA – Encina Wastewater Authority FBI – Federal Bureau of Investigation FE – Finance Enterprise FEMA – Federal Emergency Management Agency J-15 FPPC – Fair Political Practices Commission FTE – Full-Time Equivalent FVCEC – Foster a Vibrant Civic Engagement Culture FY – Fiscal Year GAAP – Generally Accepted Accounting Principles GASB – Governmental Accounting Standards Board GCC – General Capital Construction GDP – Gross Domestic Product GFOA – Government Finance Officers Association GHG – Greenhouse Gas Emissions GIS – Geographic Information System GPS – Global Positioning System HA – Hydrologic Area HELP – Homeless Engagement Leading to Progress HMP – Habitat Management Plan HOT – Homeless Outreach Team HPRM – HP Records Manager HR – Human Resources HUD – Department of Housing and Urban Development I&ED – Innovation & Economic Development ICC – International Code Council ICMA – International City/County Management Association IRF – Infrastructure Replacement Fund ISF – Internal Service Fund IT – Information Technology JPA – Joint Powers Authority LEAP – Local Early Action Planning LED – Light-emitting diode LCP – Local Coastal Program LMS – Learning Management System M&O – Maintenance and Operations MFF – Major Facility Fee MS4 – Municipal Separate Storm Sewer System MOU – Memorandum of Understanding NFPA – National Fire Protection Association NIST – National Institute of Standards and Technology PC – Personal Computer PCDC – Pursue Communitywide Digital Transformation PCI – Payment card industry PERS – Public Employees Retirement System PFF – Public Facilities Fees PHA – Public Housing Agency PIL – Park-In-Lieu Fees PLA – Public Library Association PLD – Planned Local Drainage POST – Police Officer Standards and Training PSSC – Promote Security and Sustainability through Connectivity PW – Public Works RFID – Radio Frequency Identification RFP – Request for Proposal ROPS – Recognized Obligation Payment Schedule ROW – Right-of-Way SANDAG – San Diego Association of Governments SB – Senate Bill SCADA – Supervisory Control and Data Acquisition System SDCWA – San Diego County Water Authority SDG&E – San Diego Gas & Electric SDTIP – Strategic Digital Transformation Investment Program J-16 STEAM – Science, Technology, Engineering, the Arts, and Mathematics Program SWAT – Special Weapons Attack Team SWPPP – Storm Water Pollution Prevention Plan SWQMP – Storm Water Quality Management Program TCBMP – Treatment Control Best Management Practices TCMP – Traffic Control Management Plan TDA – Transportation Development Act TDM – Transportation Demand Management TICF – Technology Investment Capital Fund TIF – Traffic Impact Fee TMDL – Total Maximum Daily Load TOT – Transient Occupancy Tax, or hotel tax UASI – Urban Areas Security Initiatives Program UDC – Unified Disaster Council (of San Diego) USLA – Unified States Lifesaving Association WQIP – Water Quality Improvement Plan J-17 BUDGET COMMUNICATIONS Workshops Community Budget Workshop on May 23, 2024 News release: https://www.carlsbadca.gov/Home/Components/News/News/2409/15 City Council Budget Meetings Fiscal Year 2024-25 Preliminary Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program on May 21, 2024 – https://carlsbadca.new.swagit.com/videos/305987 Fiscal Year 2024-25 Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program, the Fiscal Year 2023-24 Appropriation Limit and Revisions of Fees and Charges of Services on June 18, 2024 – https://carlsbadca.new.swagit.com/videos/308364 Social Media Communications Facebook Posts Proposed budget, May 9, 2024 https://www.facebook.com/cityofcarlsbad/posts/pfbid0kWDekuHpzjCBqGC25UJtM3Kc7vGgo7j2ttG mLE7r69DC3pJeY4FmiiAVr7mziTQl Budget portal and workshop, May 13, 2024 https://www.facebook.com/reel/440049848674121 Draft budget is ready, May 16, 2024 https://www.facebook.com/cityofcarlsbad/posts/pfbid02gVPi1DvJftBHVfcWxLHnLeJPG6iouen9uiGDi 9gXJTVUnUVnnhi6HahYbZVfoHX2l Workshop and preliminary budget, May 20, 2024 https://www.facebook.com/photo/?fbid=840355368125804&set=a.221114840049863 Breaking down the city budget, May 23, 2024 https://www.facebook.com/cityofcarlsbad/posts/pfbid02EN6sbCyMYYHwBVwrSUsdkjBrFKdsYQBz5R NeaHjYwvRDLCu4nZpw7ikH9UgLqzwPl Workshop reminder, May 23, 2024 https://www.facebook.com/photo/?fbid=842180857943255&set=a.221114840049863 J-18 Twitter Posts https://x.com/carlsbadcagov/status/1790141010376311195 https://x.com/carlsbadcagov/status/1792692550467281351 https://x.com/carlsbadcagov/status/1793694789763797252 https://x.com/carlsbadcagov/status/1788733945397293117 https://x.com/carlsbadcagov/status/1791282840308478293 https://x.com/carlsbadcagov/status/1793812939910111538 Instagram Posts https://www.instagram.com/reel/C67MjRryE80/?utm_source=ig_web_copy_link https://www.instagram.com/p/C7NUDAJt0r0/?utm_source=ig_web_copy_link https://www.instagram.com/p/C7Ubz1VpgWO/?utm_source=ig_web_copy_link https://www.instagram.com/p/C7VRikVMQXh/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWF lZA== https://www.instagram.com/p/C7DS_YAA5HB/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWF lZA== https://www.instagram.com/p/C6xL4ZxsvmU/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFl ZA== Nextdoor Post May 13,2024 J-19 City Manager’s Update E-Newsletters May 23 - https://conta.cc/4dPh1qJ May 16 - https://conta.cc/4bk9O05 May 9 - https://conta.cc/4b7QbbC Advertising The Coast News (print ad) May 2024 The Coast News (digital ad) May 2024 J-20 GENERAL FUND FORECAST Overview City staff develops medium-term (five-year) and long-term (10-year) forecasts as part of the budget process. While long-term projections are inherently less reliable than short-term projections, they can help detect structural budget issues early. As shown in the following chart, revenues will start to fall short of expenditures in fiscal year 2030-31 because revenues are growing at a slower rate than expenditures. The timing of the projected deficit has been pushed out by five years compared to last year’s budget. This was attributable to enhanced budget rigor, including three consecutive years of ongoing budget reductions as well as strong revenue performance throughout the high inflationary period. These efforts afford the city additional time to continue its strategic thinking and practices. Assumptions for both revenues and expenditures are detailed further in this forecast section. Forecast Methodology A financial forecast is a planning tool that helps identify trends and anticipate the long-term consequences of budget decisions. The forecast is instrumental in modeling the effects of retirement costs, employee compensation, ongoing maintenance and operations, as well as revenues for the city’s budget. The forecast is not a budget nor a plan but rather a model based on cost and revenue assumptions updated regularly as new information becomes available. Of these components, cost projections— which are based on known costs—are relatively reliable. However, revenue forecasts are based on assumptions related to future economic conditions, which are inherently more uncertain. Economic forecasts change frequently and demonstrate the difficulties of committing to a particular prediction of the future. For this reason, the city’s forecast is updated regularly. While economic conditions are the primary drivers for economically sensitive revenues such as property tax, sales tax and transient occupancy tax, other factors drive non-economically sensitive categories such as franchise, ambulance, and departmental fee revenues. These revenue categories $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 $ ( i n h t o u s a n d s ) General Fund 10-Year Forecast Revenues Expenditures J-21 are more heavily impacted by rate changes, energy prices, and consumption levels. Collections from local, state, and federal agencies are primarily driven by grant and reimbursement funding available from these agencies. As a result, these revenues experience no significant net gain or loss during economic expansions or slowdowns. All revenue projections are based upon a careful examination of the collection history and patterns related to seasonality and the economic environment the city is most likely to encounter in the future. A discussion of both the national and local economic outlooks used to develop the revenue estimates for the fiscal year 2024-25 forecast is included below. To create the revenue forecasts, the city reviewed national, state, and regional economic forecasts from multiple sources, including the Congressional Budget Office, California’s Legislative Analyst’s Office, and the Center for Continuing Study of the California Economic. The city also relies on third-party consultants to provide revenue estimates in their respective field of expertise. For sales tax, the city contracts with Hinderliter, de Llamas & Associates, also known as HdL. The city’s Consumer Price Index forecasts are derived from the UCLA Anderson Forecast for the Nation and California. National Economic Outlook Real gross domestic product increased at an annual rate of 1.6% in the first quarter of 2024, following an increase of 3.4% in the fourth quarter of 2023. This reflects increases in consumer spending, residential fixed investment, nonresidential fixed investment, and state and local government spending that were partly offset by a decrease in private inventory investment. Compared to the fourth quarter of 2023, the deceleration in real GDP in the first quarter primarily reflected a downturn in consumer spending, exports, and state and local government spending and a downturn in federal government spending. These movements were partly offset by an acceleration in residential fixed investment. Economic trends have been decelerating along with tighter financial conditions and restrictive monetary policy. Recent data suggests positive but below-trend growth this year. Although the pace of job growth is moderating, labor markets remain tight, and the U.S. consumer has demonstrated resiliency. At the end of March 2024, the two-year Treasury yield was 53 basis point higher, and the 10-year Treasury yield was about 72 basis point higher, year-over-year. The inversion between the two-year and 10-year Treasury yield remained at -39 basis points over the previous month-end. The average historical spread since 2003 is about +130 basis points. Historically, the inversion of the yield curve indicates that the probability of recession is increasing; however, with the inversion now lasting nearly two years many analysts believe it is not as good of a recession indicator as in the past. Carlsbad Economic Outlook As of 2023, Carlsbad had the second largest gross regional product in San Diego County at nearly $17.1 billion, only trailing the City of San Diego. In 2019, Carlsbad’s economy grew by $800 million to nearly $13.6 billion. In 2020, as a result of the pandemic, the city’s GRP remained flat. In 2021, its economy grew by approximately $1 billion, to nearly $14.6 billion. From 2021 to 2023, Carlsbad’s GRP grew by $2.5 billion. This growth was seen across almost all industry categories, and was led by manufacturing, wholesale trade, hospitality and professional, scientific, and technical services. J-22 Unemployment has continued to steadily improve since an initial spike to 13.8% at the onset of the COVID-19 pandemic. The March 2024 unemployment rate of 4.4% in Carlsbad represented a slight increase compared to the prior year’s unemployment rate of 3.5%. The unemployment rate for the County of San Diego was 4.4% in March 2024 and the State of California was 5.3%. Currently, many employers are citing difficulty in finding and retaining workers. Macroeconomic trends in the tech industry have been pushing unemployment up nationally, but the labor market is still considered to be very tight. There were 8,856 unique job postings in Carlsbad between January and March of 2024 representing a decrease of about 3,402 from the same quarter in the previous year. The median advertised salary for these postings was $50,000, which is on average $1,000 less than jobs posted during the same period last year. Of jobs posted, 70% indicated an education requirement of high school/GED or no required listed. While 68% of posting indicated no experience was required, indicating that entry-level positions are difficult to fill and retain. Carlsbad has established itself as having the right workforce to fuel innovation in technology and life sciences fields. Carlsbad businesses can access talent from San Diego County, Orange County, and even southwest Riverside County. More than 60% of working age residents hold a bachelor’s degree, with nearly 25% attaining an advanced degree. Outside of some communities in central San Diego, Carlsbad has the heaviest concentration of households with degrees in science, technology, engineering, and mathematics, also known as STEM degrees. This local talent mix is among the leading reasons that firms choose Carlsbad. Commercial vacancy rates remain relatively steady across all categories. The industrial vacancy rate ended the quarter at 8.2%. The office vacancy rate is currently 13.0%, compared to 15.3% pre- pandemic and retail vacancy rates were 5.4%. 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 transient occupancy and sales tax generation. Occupancy levels averaged 66.2% in the third quarter of fiscal year 2023-24 which exceeded the 65.3% average in the same quarter of the previous fiscal year. The impacts of inflation and a potential recession could hamper tourism globally, but Carlsbad is well-positioned as a destination that could see strong tourism even through a recession. Carlsbad’s average daily room rate dipped compared to the previous year from $195.63 to $193.81. While disposable income, personal savings, pent-up demand, and inflation have boosted revenue generation for the city, as inflationary levels linger, the economic outlook for tourism remains conservative. Median household income in Carlsbad continues to exceed county income levels. The median income for a household in Carlsbad in 2022 was $146,596, which was $21,927 higher than the previous year and $47,668 higher than the county median income. High interest rates have remained stagnate, but with continued high demand and low supply, as well as anticipated cuts by the Federal Reserve later in 2024, property values in Carlsbad have remained strong. The median home price increased to $1.54 million or 12% over the previous year. J-23 The city issued 2,316 business licenses in the third quarter of fiscal year 2023-24, including 1,024 non- residential, 585 residential, and 707 outside-the-city licenses. This represents a decrease of 181 total businesses over the same quarter in 2023. The number of licenses issued does not reflect the number of businesses in Carlsbad for several reasons: 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 6,630 businesses in Carlsbad. Between January and March of 2023, residential building permits decreased while commercial building permits marked a slight increase. The city issued 769 residential permits and 89 commercial permits. The number of residential building permits issued has been generally decreasing over the past three years, a trend largely attributable to a decline in demand for new photo-voltaic systems as a result of the State of California’s changes to net-metering rules. General Fund Revenues The city’s top three revenue sources continue to be property tax, sales tax, and transient occupancy tax. Given the level of inflation coupled with lingering pent-up demand, personal savings, and disposable income, the city expects revenues to be slightly above the historic highs estimated in fiscal year 2023-24. As shown in the chart below, General Fund revenues are expected to be $239.1 million in fiscal year 2024-25 and increase throughout the forecast. Sales tax revenues are conservatively projected to increase from the record highs in fiscal year 2023-24. Property tax revenues are expected to increase moderately, and transient occupancy tax revenues are projected to remain flat from the record highs in fiscal year 2023-24. Other revenue sources consider assumptions ranging from no growth to conservative growth. General Fund revenue performance, particularly in the three main categories discussed above, has experienced tremendous recovery and growth following the pandemic in March 2020. Shelter-in- place mandates, travel restrictions, and federal stimulus have had significant impacts on the economy. Pent-up demand, increased personal savings and disposable income levels, and consumer demand has remained resilient over the last year given the high spike in inflation. With the Fed’s efforts to combat inflationary increases by increasing interest rate targets, currently at 5.25%-5.50%, we have seen inflation decrease. This is one indication that consumer demand may be diminishing which, among other factors, warrants concern about the economy moving forward and continues to drive the need for conservative assumptions for economically sensitive revenue sources like sales and transient occupancy taxes. The National Bureau of Economic Research, an American private nonprofit research organization, defines the beginning and ending dates of recessions. The Bureau defines a recession as “a significant decline in economic activity spread across the economy, lasting more than two quarters which is 6 months, normally visible in real GDP, real income, employment, industrial production, and wholesale retail sales.” Since World War II, recessions have lasted an average of 11.1 months and have occurred, on average, about every 58.4 months, or 4.8 years. J-24 Sales Tax Sales tax is one of the city’s largest revenues sources. Sales taxes are collected at the point-of-sale and remitted to the California Department of Tax and Fee Administration CDTFA, formerly the Board of Equalization. The Department allocates tax revenue owed to the city in monthly payments. Sales tax revenues were adversely impacted in fiscal year 2019-20 with the onset of the pandemic. The restrictions resulting from the COVID- 19 pandemic have led to increases in segments like auto sales, construction, drug store sales, chemical product, food markets and recreational products, while others like restaurants and general retail took a major hit. The city has also been benefitting from sales tax revenues on internet sales generated as a result of the Wayfair or AB147 law that went into effect in October 2019. $239,136 $252,875 $266,859 $280,382 $293,397 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $ ( i n t h o u s a n d s ) 10-Year General Fund Revenue Forecast Estimated Projected Projected Projected Projected Projected Revenue Category 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 Sales Tax 58,900$ 59,383$ 60,528$ 62,770$ 65,079$ 67,110$ Property Tax 91,649$ 94,902$ 98,018$ 101,102$ 104,155$ 107,178$ Transient Occupancy Tax 34,777$ 34,777$ 35,578$ 36,361$ 37,128$ 37,879$ Franchise Tax 8,554$ 8,689$ 8,825$ 8,968$ 9,114$ 9,262$ Business License Tax 6,360$ 6,560$ 6,765$ 6,985$ 7,212$ 7,446$ Development Related 4,731$ 5,978$ 6,532$ 6,602$ 6,606$ 6,594$ Interdepartmental Charges 6,017$ 5,828$ 5,973$ 6,123$ 6,276$ 6,433$ Income from Investments and Property 6,429$ 7,041$ 7,119$ 7,201$ 7,285$ 7,369$ Ambulance Fee 7,126$ 7,650$ 7,841$ 8,037$ 8,238$ 8,444$ Transfer Tax 1,625$ 1,676$ 1,729$ 1,785$ 1,843$ 1,903$ Intergovernmental 1,240$ 894$ 898$ 903$ 907$ 912$ Other Revenues 5,970$ 5,760$ 5,897$ 6,037$ 6,181$ 6,329$ Total 233,378$ 239,136$ 245,704$ 252,875$ 260,023$ 266,859$ 5-Year General Fund Revenue Forecast (in thousands) $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 $ ( i n t h o u s a n d s ) 5-Year Sales Tax Forecast J-25 Until fiscal year 2019-20, sales tax revenues had improved markedly, peaking in fiscal year 2018-19 at $40.8 million. The onset of the pandemic in March 2020 resulted in swift reductions in sales tax revenues and the city ended the year with $38 million in sales tax revenues. During fiscal year 2020- 21, impacts of COVID-19 on sales tax generally correlated with shelter-in-place mandates and as restrictions were lifted, recovery was realized as fiscal year 2020-21 ended with $44 million in sales tax revenues. Fiscal year 2021-22 experienced the most accelerated recovery and ended the year at $51.2 million in sales tax revenues, a historic high for the city. Much of this recovery resulted from the easing of restrictions and pent-up demand. Fiscal year 2022-23 began with much uncertainty surrounding market and economic conditions like inflation and impacts to disposable income. However, consumer demand remained resilient and sales tax revenues are estimated to reach another historic high of $58.9 million. Much of the growth over the prior year was attributable to the correction of an error made by one specific auto dealer in how they were remitting and reporting sales tax receipts to the California Department of Tax and Fee Administration. This error has been corrected and will be treated as ongoing revenue in the future. Looking ahead to fiscal year 2024-25, much uncertainty remains surrounding inflation and diminishing pent-up demand, personal savings, disposable income and recessionary risk. As a result, a conservative estimate of $59.4 million is budgeted for fiscal year 2024-25 which represents an increase of $0.5 million, or 1%, over fiscal year 2023-24 estimations. With high levels of inflation and pent-up demand likely to decrease, conservative estimates have been applied for sales tax in the out-years of the forecasted period. The city’s sales tax base is heavily weighted in the transportation (comprised heavily of new auto sales) and general retail sectors, both of which account for over half of taxable sales in Carlsbad. New auto sales are highly elastic in comparison to economic trends, and tax revenues from new auto sales fell precipitously during the recession, from $6.7 million in 2007 to $4.4 million in 2009. Since that dip, auto sales tax revenues have continued to climb and reached a high of $13.4 million for calendar year 2022. Calendar year 2023 yielded another historic high of $17.1 million and was largely attributable to an ongoing correction of an error. While sales tax revenues have increased in total, many industry groups have remained stagnate and even decreased. As of December 31, 2023, and compared to the previous calendar year, general retail and food products sales tax remained flat, and business-to-business decreased $553,000. These stagnations and decreases are particularly remarkable given the lingering levels of inflation, indicating that consumer demand has begun to decline compared to previous periods. As these trends continue, the city’s sales tax outlook will remain conservative. Revenues received under Proposition 72, a 0.5 cent increase in California sales tax for the funding of local public safety services, is included in sales tax revenues. Sales taxes are expected to increase over the next 10 years by annual average rate of 1.4%. Property Tax Property tax is the largest source of General Fund revenues and is expected to grow by $3.3 million or 3.5% over the fiscal year 2023-24 estimated amount. While the residential real estate market in Carlsbad has seen significant increases in values, commercial property assessed values are still expected to remain more flat. Since the beginning of calendar year 2024, despite the high interest rate environment, the median home price has increased representing sustained demand given the low inventory. Proposition 8 allows owners to have their property temporarily revalued if market J-26 value is lower than the factored base year value, posing a risk that property values could temporarily decrease. Until interest rates decline, prices are not anticipated to increase significantly on an annual basis. Assessed values on the residential real estate are expected to grow modestly, capped by California’s Proposition 13. Proposition 13, adopted in 1978, limits the annual increase in assessed values for property. Under this proposition, assessed values (and the related property tax) can grow by no more than 2% per year. The value upon which the tax is based is only increased to the full market value upon the sale of a property. The maximum increase of assessed values, when not sold, is by the change in California’s Consumer Price Index, which was 1.036% for 2021-22 – below the 2% cap for the first time since 2016-17. Residential activity has been driven by low interest rates on mortgages, pent-up demand that built during the shutdown and an increase in the ability to work remotely. With the rise in interest rates over the last year, that has shifted swiftly. The median price of a single family residence in Carlsbad, based on resale data from Zillow, is $1.54 million, up 12% year over year as of March 2024. Estimates for the upcoming 2024-25 assessment year provided by the County of San Diego’s Assessor’s Office project moderate growth; however, the city’s forecast assumes a slightly more conservative outlook after taking into account current economic conditions and the related risks posed upon the housing market. Sustained levels of high inflation and the Federal Reserve’s current interest rate target are likely to impact property values as well as the volume of transactions. Changes in property tax revenues lag behind changes in the housing market, as the tax revenue for the upcoming fiscal year is based on assessed values from January 2024. Thus, the taxes to be received for fiscal year 2024-25 are based on assessed values as of January 1, 2024. Property taxes tend to grow slowly unless there is a significant amount of development-related activity. In past decades, the city has seen robust growth in property tax revenue due to new development, high turnover of existing homes, and double-digit growth in housing prices. However, as the city approaches buildout, development has slowed. In addition to recent interest rate increases, slower development combined with minimal commercial property transactions and tax reform has caused a slowing in property tax growth in the city. Property taxes are expected to increase over the next 10 years by annual average rate of 2.9%. $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 $ ( i n t h o u s a n d s ) 5-Year Property Tax Forecast J-27 Transient Occupancy Tax Transient Occupancy Tax, also known as TOT or hotel tax, is the third highest revenue source for the General Fund. TOT was the revenue category most adversely impacted by COVID-19. From a historic high of $26 million in fiscal year 2018-19, the city experienced year-over-year decreases of 27% and 16%. An accelerated recovery, with the easing of restrictions and pent-up demand, resulted in TOT revenues reaching new historic highs and ending fiscal year 2021-22 at $32.4 million. The city anticipated the rising inflation in fiscal year 2022-23 to adversely impact travel and tourism levels. However, the rise in average daily rates did not appear to significantly influence occupancy levels and as a result, the year ended with another historic high of $34.3 million. Fiscal year 2023-24 projections also assumed conservative growth given lingering inflation and, as such, it is anticipated the year will end at a consistent level as the prior year. Because group business travel still has yet to fully return to pre-pandemic levels, coupled with continued uncertainty around current inflation levels and diminishing pent-up demand, the city has applied conservative estimates to the forecast. The City of Carlsbad currently has approximately 5,059 hotel rooms and 446 registered vacation rentals. Transient occupancy taxes are expected to increase over the next 10 years by an annual average rate of 1.8%. Franchise Tax The city currently has franchise agreements for cable TV service, solid waste services, cell sites, fiber optic antenna systems and gas and electric services. The solid waste franchise experienced minor revenue increases that mirror growth in population and changes in rate structures. Cable TV franchise revenue is expected to remain relatively consistent from $2.0 million in the previous fiscal year to $2.1 million in fiscal year 2024-25. This revenue source will most likely remain stable or decline in future years as more subscribers cut cable services and move to online streaming services. In April 2021, a new agreement was approved with Republic Services of San Diego. The city receives 7.5% of revenues collected as well as an annual payment of $0.8 million in support of AB 939 and $1.3 million storm water fee. The increase in fiscal year 2023-24 is relatively modest compared to the increase experienced in the prior year that was driven by the $0.8 million payment to assist with AB 939. Increases in the forecast are driven by estimated population growth which drives consumption. $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 $ ( i n t h o u s a n d s ) 5-Year Transient Occupancy Tax Forecast $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 $ ( i n t h o u s a n d s ) 5-Year Franchise Tax Forecast J-28 San Diego Gas & Electric pays franchise taxes for the use of the public land over which they transport gas and electricity. The city also receives an “in-lieu” franchise tax based on the value of gas and electricity transported on SDG&E lines but purchased from another source. The “in-lieu” tax captures the franchise taxes on gas and electricity that is transported using public lands, which would not otherwise be included in the calculations for franchise taxes, due to deregulation of the power industry. This revenue source experienced a significant increase in fiscal year 2022-23 of $919,000 due to price increases but is expected to remain relatively flat out over the next several years. Franchise taxes are expected to increase over the next 10 years by an annual average rate of 1.6%. Business License Tax Business licenses taxes are closely tied to the health of the local economy and are projected to increase to $6.6 million in fiscal year 2024-25, a growth of $0.2 million, or 3%, when compared to last year’s current estimates. This is somewhat in line with projected sales tax revenue increase as businesses either pay taxes based on the amount of their gross receipts or based on set fees. There are currently about 9,529 licensed businesses in the City of Carlsbad, 63 less than in the prior year with 6,630 of them located in the city. Over the next 10 years, business license tax revenues are forecasted to increase annually, on average, by approximately 3.2%. Development-Related Revenues Development-related revenues are derived from fees for planning, engineering and building permits, and fees paid by developers to cover the cost of reviewing and monitoring development activities, such as plan checks and inspections. These revenues are difficult to predict, as many of the planning and engineering activities occur months or years before any actual development. During fiscal year 2009-10, development-related revenues began to turn around from historic lows experienced in fiscal year 2008-09. Since then, development-related revenues have fluctuated in line with increases and decreases in residential, commercial and industrial development. In fiscal year 2024-25 the city expects a 16% increase in development related revenues to approximately $3.4 million. This follows lower than anticipated development activity occurring in fiscal year 2023-24. The projected increase in development-related revenues is tied to the volume and type of development projected to be permitted, multi-family versus single-family, and the revenues derived from building fees which occur in the early stages of development. Increases applied to these charges for services are made in accordance with City Council Policy 95, Cost Recovery. $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 $ ( i n t h o u s a n d s ) 5-Year Business License Tax Forecast $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 $ ( i n t h o u s a n d s ) 5-Year Development-Related Forecast J-29 It is difficult to forecast development-related revenues as they fluctuate significantly from one year to the next. The city works with consultants to identify and estimate future development based on capacity. While development-related revenues have been trending downward based on capacity, the forecast attempts to normalize highs and lows experienced by applying conservative to moderate historical trendline assumptions. Over the next 10 years, development-related revenues are expected in increase approximately 4% annually on average. Interdepartmental Charges Interdepartmental 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. Miscellaneous interdepartmental charges correlate with consumer price index (CPI) and are expected to increase annually and on-average by 1.9%. Income from Investments and Property This category includes interest earnings as well as rental income from city-owned land and facilities. The city is expected to earn about $4.1 million in interest on its General Fund investments for fiscal year 2024-25 and another $3.0 million in rental and lease income. The yield on the city’s portfolio is forecasted to average 2.4% and cash balances are expected to remain flat as increases in receipts are projected to be offset by increases in expenditures as the City Council’s goals are operationalized. Ambulance Fees The city receives ambulance fee revenues based on gross revenue generated by the ambulance transport service provider. These revenues are estimated to increase $0.4 million over last year’s estimates, from $7.2 million to $7.7 million. This increase is driven by a combination of the Fire Department’s recent fee study implementation, the addition of two medical transports, the Ground Emergency Medical Transportation Certified Public Expenditure Program, which helps cover uncompensated costs for Medi-Cal fee-for-service transports, and the participation in the Public $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 $ ( i n t h o u s a n d s ) 5-year Interdepartmental Charges Foreacast $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 $ ( i n t h o u s a n d s ) 5-Year Income from Investments and Property Forecast $6,000 $6,500 $7,000 $7,500 $8,000 $8,500 $9,000 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 $ ( i n t h o u s a n d s ) 5-Year Ambulance Fees Forecast J-30 Provider Ground Emergency Medical Transport Intergovernmental Transfer Program, which will provide add-on reimbursement payments to help cover uncompensated costs in the future. Over the next 10 years, ambulance fees are anticipated to increase over the forecast period by 3.0% annually on average. Transfer Taxes Transfer taxes are those taxes paid to the county upon the transfer of interests in real estate. The tax is $1.10 per $1,000 of property value, split equally between the county and the city. Carlsbad expects to receive approximately $1.6 million in transfer taxes for fiscal year 2023-24, which is a 3% increase from fiscal year 2022-23 adopted budget and relatively consistent with current year estimates. The residential real estate market remains strong; however, this will likely be influenced by rising and sustained interest rates. Although housing prices in Carlsbad have increased in 2024 and buyer-demand remains high, inventories continue to remain low. Over the forecasted period, transfer taxes are expected to annually increase on average by 3.2% in alignment with housing industry projections. Intergovernmental Revenues These revenues represent funds received from other governmental entities. In recent years, this revenue category has experienced a great deal of activity with the American Rescue Plan Act of 2021 in which the city received $12.6 million over a two-year span. Over the forecasted period, intergovernmental revenues are anticipated to remain flat. Other Revenues All other revenues include recreation fees, other licenses and fees, fines and forfeitures, transfers in, and other charges and fees. Over the forecasted period, these revenues are anticipated to increase conservatively by 0.5% annually, on average. $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 $ ( i n t h o u s a n d s ) 5-Year Transfer Taxes Forecast $- $200 $400 $600 $800 $1,000 $1,200 $1,400 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 $ ( i n t h o u s a n d s ) 5-Year Intergovernmental Revenues Forecast $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 $ ( i n t h o u s a n d s ) 5-Year Other Revenues Forecast J-31 General Fund Expenditures Each year, the city updates the budget by considering historical, present, and future costs and trends. In recent years, the city has added new rigor to the budget process which includes the following measures and strategies: • Automatic consumer price index increases were no longer added to base budgets. Instead, budget requests are required to substantiate the specific increase each year • The process for carrying forward appropriations and encumbrances was formalized whereby requests exceeding $100,000 require City Council approval. • The process for requesting new staff was also enhanced whereby new requests must meet one of the following criteria: o Needed to comply with legal and regulatory requirements o Address a critical public safety need o Meet City Council priorities or goals • In fiscal years 2022-23 and 2023-24, departments were directed to identify budgetary savings which resulted in a decrease in General Fund maintenance and operation expenditures of approximately $5 million. • In fiscal year 2024-25, in an effort to continue mitigating economic uncertainty, departments were directed to identify positions to be eliminated from the budget. As a result, approximately 12 full-time equivalent positions were eliminated resulting in over $1 million in ongoing General Fund savings. As shown in the chart below, General Fund expenditures are expected to increase from $238.5 million in fiscal year 2024-25 to $317.9 million over the 10-year forecast period, representing an increase of $79.4 million or 33%. Estimated Projected Projected Projected Projected Projected Expenditure Category 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 Salaries 87,207$ 87,841$ 92,151$ 95,971$ 99,793$ 103,775$ Benefits 42,925$ 46,838$ 51,587$ 55,179$ 58,506$ 63,519$ Maintenance and Operations 64,361$ 64,917$ 66,073$ 68,236$ 70,470$ 72,777$ Capital Outlay 131$ 825$ 1,702$ 1,757$ 1,814$ 1,873$ Council Contingency 500$ 500$ 500$ 500$ 500$ 500$ Transfers 28,210$ 37,548$ 16,628$ 17,095$ 17,561$ 18,009$ Total 223,333$ 238,468$ 228,640$ 238,739$ 248,644$ 260,453$ 5-Year General Fund Expenditure Forecast (in thousands) $238,468 $238,739 $260,453 $281,654 $305,216 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $ ( i n t h o u s a n d s ) 10-Year General Fund Expenditure Forecast J-32 Personnel Expenditures Salaries Full-time salaries are projected to grow at a rate of 3.8% per year, based on negotiated and step increases. Part-time salaries are forecasted to grow at a rate of 2.0% as they generally grow slower than full-time salaries. In fiscal year 2022-23 the city’s budget began accounting for vacancy savings. Vacancy savings represents the amounts of savings achieved through attrition. The forecast assumes $2 million in vacancy savings on an annual basis. Health Benefits In fiscal year 2024-25 health benefits account for about 8% of all personnel costs in the General Fund. The city pays employees a fixed amount for health and dental insurance costs instead of covering a percentage of premiums. Health benefit costs are forecasted to increase annually on average by approximately 4.8%. Retirement Rising retirement costs are driving the increase in employee benefits. Carlsbad provides retirement benefits for its employees through the California Public Employee’s Retirement System, or CalPERS. Poor investment returns during the Great Recession significantly decreased the plan’s assets. In addition, enhanced benefits and actuarial assumption changes due to increased life expectancies increased the plan’s liabilities. As a result, the city’s pension costs have increased significantly and are one of the city’s largest financial obligations. In December 2016, the CalPERS Board of Administration lowered the discount rate from 7.5% to 7.0% with a three-year phase-in beginning in fiscal year 2018-19 to improve the financial stability of the pension system. This resulted in significant increases in retirement costs. In fiscal year 2021-22, the CalPERS Board lowered the discount rate from 7.0% to 6.8% because the fiscal year 2020-21 investment gain of 21.3% triggered the Funding Risk Mitigation Policy. With CalPERS earning an investment loss of 6.1% in fiscal year 2021-22, the city’s required contributions over the next five years are projected to significantly increase. Since fiscal year 2021-22, CalPERS’ investment performance has been relatively stable and significant fluctuations in costs are not anticipated in the near future. FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Projected Payroll 50,136,262$ 51,540,077$ 52,983,199$ 54,466,729$ 55,991,797$ 57,559,567$ Normal Cost (%)12.1%11.8%11.6%11.3%11.1%10.9% Normal Cost ($)6,081,529$ 6,081,729$ 6,146,051$ 6,154,740$ 6,215,089$ 6,273,993$ UAL Payment 8,103,356$ 8,933,000$ 9,847,000$ 10,495,000$ 12,146,000$ 12,373,000$ Total Contribution 14,184,885$ 15,014,729$ 15,993,051$ 16,649,740$ 18,361,089$ 18,646,993$ Total Contribution (%)28.3%29.1%30.2%30.6%32.8%32.4% FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Projected Payroll 29,978,865$ 30,818,274$ 31,681,185$ 32,568,258$ 33,480,169$ 34,417,614$ Normal Cost (%)20.5%20.2%19.9%19.6%19.3%18.9% Normal Cost ($)6,142,669$ 6,225,291$ 6,304,556$ 6,383,379$ 6,461,673$ 6,504,929$ UAL Payment 7,360,036$ 8,520,000$ 9,271,000$ 9,814,000$ 11,088,000$ 11,273,000$ Total Contribution 13,502,705$ 14,745,291$ 15,575,556$ 16,197,379$ 17,549,673$ 17,777,929$ Total Contribution (%)45.0%47.8%49.2%49.7%52.4%51.7% Projected CalPERS Contributions (Miscellaneous) Projected CalPERS Contributions (Safety) J-33 The city’s retirement rates are based on a blend of all three miscellaneous tiers (2.7% at 55, 2% at 60, and 2% at 62). Although employees pay a different rate depending on their respective tier, the city’s costs are the same for all three tiers. The table below shows the current breakdown of city employees amongst the three retirement tiers the majority of employees in the city are currently covered under Tier 3. Savings from the lower-cost Tier 2 and Tier 3 plans are not expected to be substantial for several years. A retiree’s highest monthly pension benefits are calculated by multiplying: - Service credit: the number of years of CalPERS service. - Benefit Factor: percentage of pay based on age. - Compensation Basis: the highest monthly average salary for a defined period. Other Benefits The forecast assumes health insurance, dental insurance, and vision insurance increase by CPI. Maintenance and Operations General Fund departments budget for costs to support the ongoing maintenance and operations of the city. These costs comprise materials and supplies, professional services, and one-time special projects. One-time costs are budgeted for in year one of the forecasted period so naturally the increase over the forecasted period remains relatively low. On average, maintenance and operations costs are expected to increase approximately 3.7% annually. Capital Outlay Capital outlay costs are typically not budgeted for in the city’s General Fund; however, from time to time, departments may experience the need to purchase an item that is classified as a capital asset. Because the annual capital outlay amounts are relatively minimal, they have not been included in the city’s General Fund forecast. Council Contingency The city maintains a Council Contingency budget at a level of $500,000. Misc. Tier 1 186 34.3%17,001,496$ Misc. Tier 2 61 21.2%6,725,942$ Misc. PEPRA 301 16.9%22,422,657$ Fire Tier 1 40 33.6%5,626,696$ Fire Tier 2 17 30.0%2,050,608$ Fire PEPRA 41 25.4%4,090,715$ Police Tier 1 36 37.9%5,699,546$ Police Tier 2 14 35.6%1,849,960$ Police PEPRA 72 29.4%8,277,821$ CalPERS Plan Breakdown by Tier (Miscellaneous) CalPERS Plan Breakdown by Tier (Safety) Tier Number of Employees Total Normal Cost FY 2024-25 Payroll on 6/30/2022 Number of EmployeesTier Total Normal Cost FY 2024-25 Payroll on 6/30/2022 J-34 Transfers The General Fund is responsible for transferring funds for the following purposes: • Lighting and Landscaping District #1 (LLD #1) – the city established LLD #1 in 1986 and during its formation, no annual inflator was applied. As a result, the assessment paid by property owners in the District have become insufficient to cover the costs of lighting and landscaping. As a result, the General Fund is responsible for making up the difference. The transfer amount is expected to increase 7% over the next five years at an annual average rate of 1.5%. • Future Capital Funding – the General Fund is responsible for a significant portion of the city’s capital project funding. On an annual basis, the General Fund transfers an equivalent of 6% of estimated General Fund revenues to the Strategic Digital Transformation Investment Program, the Infrastructure Replacement Fund, and the General Capital Construction Fund. This amounts to $4.8 million being transferred to each of the capital project funds. The fiscal year 2024-25 budget was able to program initial budget surplus by setting aside an additional $13.8 million to the General Capital Construction Fund on a one-time basis. These transfer amounts increase throughout the forecast based on increases in forecasted General Fund revenues. CalPERS The city provides a defined benefit pension to its employees through the California Public Employees’ Retirement System. Retirement benefits are calculated using a formula based on an employee’s age, earnings, and years of service. The retirement benefits are funded by: • Investment earnings (60%) • Employer contributions (29%) • Employee contributions (11%) Each year, CalPERS determines an employer’s contributions based on actual investment returns and actuarial assumptions including: • Expected investment returns (discount rates) • Inflation rates • Salaries • Retirement ages • Life expectancies Contributions to fund the pension plan are comprised of two components: • The normal cost (the cost of the benefits earned in a respective year). • The amortization of the unfunded accrued liability, also known as the UAL. CalPERS Discount Rate Defined benefit plans are highly sensitive to the discount rate assumption. The discount rate is the expected rate of return of the plan’s assets over the long term. The discount rate will depend on the plan’s size, asset allocation, time horizon, and other considerations. From the city’s perspective, the discount rate is important as it is used to determine the city’s annual contributions to the plan, the plan’s unfunded liability, and the plan’s funded status. In other words, the discount rate is used to determine whether a plan has enough assets to meet its future obligations. The discount rate must be realistic to allow the city to foresee funding issues that may J-35 impact future operating budgets and future generations of retirees and plan members. If the discount rate assumption is too high and investments earn less than expected, a funding shortfall may result, requiring the city or CalPERS members to make greater contributions than expected. CalPERS Investment Earnings Since investment earnings fund nearly 60% of retirement benefits, the city’s pension plan is sensitive to the investment returns of CalPERS. Investment returns affect how much of the retirement benefits can be funded by investment earnings rather than contributions. If investment returns are lower than the discount rate, contributions must increase to make up the difference. As a result, pension plans need accurate return assumptions to ensure fiscal sustainability. Currently CalPERS assumes it will earn investment returns of 6.8% each year. As illustrated in the following chart, over the last 20 years, CalPERS has earned investment returns below the discount rate assumption approximately half of the time. Individual fiscal year investment returns have ranged between -24.0% and +21.7%. In particular, CalPERS earned negative investment returns in 2001 and 2002 due to the dot-com crash and 2008 and 2009 due to the Great Recession. For fiscal year 2021-22, CalPERS reported an investment loss of -6.1%, 12.7 percentage points lower than the 6.8% discount rate. The average investment return is 7% for a five-year period, 8% for a 10- year period, and 7.5% for a 20-year period. As returns in a given year are volatile, it can be more instructive to look at returns over longer time horizons. As of June 30, 2023, below is a look at CalPERS’ investment returns over various time periods. CalPERS Update Funding Risk Mitigation Policy Under the Funding Risk Mitigation Policy, the 21.3% return in fiscal year 2020-21 triggered a reduction in the discount rate from 7% to 6.8%. The Funding Risk Mitigation Policy, approved by the CalPERS Board in 2005, lowers the discount rate in years of good investment returns to reduce risk in the portfolio. The Risk Mitigation Policy began affecting contributions in fiscal year 2023-24. 1 Year 5.8% 5 Year 6.5% 10 Year 7.3% 20 Year 7.6% Time Period Total Investment Return -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 An n u a l I n v e s t m e n t R e t u r n s CalPERS Historical Investment Returns Annual Investment Return Discount Rate J-36 Asset Liability Management Process In November 2021, CalPERS completed its quadrennial Asset Liability Management process, which reviewed investment strategies and actuarial assumptions. At the November 15-17, 2021, meetings, the CalPERS Board approved a 6.8% discount rate, selected a new asset allocation for the fund’s investment portfolio, and adopted new actuarial assumptions. CalPERS Plan Status As of the most recent actuarial valuation on June 30, 2022, the city’s miscellaneous pension plan had assets of $369,4 million, liabilities of $481.4 million and a funded ratio of 76.7%. The city’s safety pension plan has assets of $282.5 million, liabilities of $393.0 million and a funded ratio of 71.9%. The unfunded liability is the difference between assets and liabilities, while the funded ratio is the ratio of assets to liabilities. Impact of CalPERS Investments Returns CalPERS assumes it will earn investment returns of 6.8% each year. If investment returns are higher than 6.8%, the city’s contributions decrease. Conversely, if investment returns are lower than 6.8%, the city’s contributions increase. In fiscal year 2020-21, CalPERS earned 21.3% and as a result, the city’s required pension contributions decreased. In fiscal year 2021-22, CalPERS experienced an investment loss of -6.1% and as a result, the city’s required pension contributions will increase effective in fiscal year 2024-25. In fiscal year 2022-23, CalPERS experienced an investment return of 5.8% which was below their target of 6.8% and as a result, the city’s required pension contributions will increase effect in fiscal year 2025-26. Asset Class Global Equity 50% 42% Fixed Income 28% 30% Real Assets 13% 15% Private Equity 8% 13% Private Debt 0% 5% Liquidity 1% 0% Total 100% 105% Current Allocation Previous Allocation June 30, 2021 June 30, 2022 Present Value of Projected Benefits 530,619,478$ 559,893,293$ Entry Age Normal Accrued Liability 456,814,169$ 481,393,865$ Market Value of Assets 404,515,911$ 369,436,837$ Unfunded Accrued Liability 52,298,258$ 111,957,028$ Funded Ratio 88.6%76.7% June 30, 2021 June 30, 2022 Present Value of Projected Benefits 458,282,303$ 485,436,500$ Entry Age Normal Accrued Liability 372,017,358$ 393,017,010$ Market Value of Assets 308,342,667$ 282,537,994$ Unfunded Accrued Liability 63,674,691$ 110,479,016$ Funded Ratio 82.9%71.9% CalPERS Miscellaneous Plan Status CalPERS Safety Plan Status J-37 Impact of CalPERS Discount Rate Changes Due to lower-than-historical interest rates and economic growth, market experts project lower returns for the next several decades. The Pew Research Center forecasts a long-term investment return of 6.5% for typical pension fund portfolios. During its Asset Management Liability Process, CalPERS considered discount rates between 6.25% and 7%. Ultimately, CalPERS approved a discount rate of 6.8%, a decrease from the previous rate of 7%. The discount rate has a significant effect on the city’s CalPERS contributions. If the discount rate is reduced, the city’s CalPERS contributions will increase. City Strategies In recent years, unfunded liabilities, or pension debt, have caused cities in California to cut back on public services. Three cities have declared bankruptcy. Pension debt is the difference between how much money is available to pay for the pensions that city employees receive when they retire and the money needed to pay for those benefits. Pension debt is an estimate because it’s not possible to know exactly how well the pension fund investments will perform nor how many employees will retire, at what age they will retire and how long they will live. The City of Carlsbad has long recognized the financial uncertainty caused by the state’s pension system. That’s why Carlsbad was one of the first cities in the region to enact pension reform, pre- dating state reforms in 2013. This and other strategies have reduced the city’s pension debt considerably compared to most other cities in the state. In 2019, the City Council adopted a Pension Funding Policy via City Council Policy 86. This policy states that the city will strive to maintain an 80% funded status. Said another way, the goal of this policy is to keep Carlsbad’s pension debt at no more than 20% of its estimated liability. Since fiscal year 2016-17, the city has contributed $56.4 million to CalPERS to reduce the city’s unfunded liability and thereby achieve interest savings. These contributions were in addition to the annual required contributions set by CalPERS. In fiscal year 2023-24, the City Council approved the establishment of a Section 115 Pension Trust. A Section 115 Pension Trust is a tax-exempt investment tool that allows local governments to pre-fund pension and retiree health costs. Once contributions are placed into the trust, assets from the trust can only be used for retirement plan purposes. Withdrawals may be made to either reimburse the city for retirement system contributions or to directly pay CalPERS. The benefits of a Section 115 Trust include the following: • Local control over assets: The city controls the contributions, withdrawals, investment strategy, and risk level of assets in the Trust. • Pension rate stabilization: Assets can be transferred to CalPERS at the city’s discretion to pay for Normal Cost or Unfunded Actuarial Liability (UAL) contributions and can be used to reduce or eliminate large fluctuations in the city’s pension costs. • Potential for higher investment return than General Fund: Investment requirements that apply to the city’s General Fund assets under Government Code 53601 are not applicable to Trust assets. • Diversification: Trust assets will be diversified from CalPERS’ investments. J-38 The Section 115 Trust will be available to help offset future increases in pension costs while minimizing the impact on the city’s operating budget. It will provide the city with an alternative to sending funds directly to CalPERS while allowing the flexibility to make additional payments to CalPERS to reduce the Unfunded Actuarial Liability at the city’s discretion. The purpose of the trust is to accumulate sufficient assets to: (1) maintain an 80% funded status in accordance with City Council Policy 86 and (2) fund potential future decreases in CalPERS’ discount rate. For example, a reduction in CalPERS’ discount rate from the current 6.8% to 6.25% would result in additional contributions of approximately $118 million over a 20-year period. The city’s Section 115 Pension Trust is scheduled to receive $40 million in principal contributions from the General Fund over a five-year period and assuming a 6.25% annual rate of return, the trust is projected to accumulate sufficient funds to mitigate the impacts of such a discount rate reduction over a 20-year period. Even though CalPERS is continuing to take prudent measures to manage the pension liability for its participants, the annual costs paid by participating members will continue to increase. And, while CalPERS has outperformed its assumed rate of return on investments over the last 10-years, future economic uncertainty is likely to have a profound impact on its investment performance, which will impact the city’s annual required contributions. Projected 20-Year CalPERS Costs at Lower Discount Rates 0 50 100 150 200 250 300 350 400 6.80%6.50%6.25%6% $ i n M i l l i o n s Additional Required Contributions + $66M + $118M + $167M J-39 General Fund’s Fund Balance The General Fund’s fund balance serves as an indicator of fiscal health for the city. It represents the cumulative amount of revenues in excess of expenditures and how those funds may be used in the future. The city is required to account for its fund balances in accordance with Governmental Accounting Standard No. 54 which categorizes and defines how funds are to be reported as follows: Nonspendable Fund Balance – this includes amounts that cannot be spent because they are either not spendable in form (such as inventory) or legally or contractually required to be maintained intact (such as endowments). The city’s nonspendable balances include inventory, prepaid costs, deposits, loans receivable and advances to other funds. Restricted Fund Balance – this includes amounts that can be spent only for specific purposes stipulated by the constitution, external resource providers, or through enabling legislation. If the City Council action limiting the use of funds is included in the same action (legislation) that created (enables) the funding source, then it is restricted. The city’s restricted balance includes funds that have been contributed to the Section 115 Pension Trust. These funds are legally restricted to be used for pension related purposes. Between fiscal year 2024-25 and 2027-28, the General Fund is scheduled to contribute an additional $30 million and, assuming a 6.25% annual rate of return, is expected to accumulate $68.7 million at the end of the forecasted period. Committed Fund Balance – this includes amounts that can be used only for the specific purposes determined by a formal action of the City Council. It includes legislation (council action) that can only be overturned by new legislation requiring the same type of voting consensus that created the original action. Therefore, if the City Council action limiting the use of the funds is separate from the action (legislation) that created (enables) the funding source, then it is committed, not restricted. The city considers a resolution to constitute the form action of the City Council that is necessary to commit fund balance. The city currently has $1,000,000 committed for community activity grants. Assigned Fund Balance – this includes amounts that are designated or expressed by the City Council but does not require a formal action like a resolution or ordinance. The City Council has delegated the authority for the City Manager to carry forward certain unspent budget amounts for specific one-time purposes if the amount is equal or less than $100,000 per item to the next fiscal year. The City Council has authorized, through resolution, that all outstanding encumbrances at the end of the fiscal year and certain unspent budgeted amounts over $100,000 per item to be carried forward into the next fiscal year. Authorized encumbrances and carryforward budget are presented by function (General Government, Public Safety, Community Services, and Public Works). These amounts vary from year to year; for purposes of the forecast, historical averages were applied to each of the out years. The assigned fund balance also includes an assignment for economic uncertainty which may be used for periods of economic downturn or decline and at the discretion of the City Council. Lastly, this classification also has an Asset Replacement Reserve of $17.5 million. This reserve will be used and replenished on an annual basis to replace significant assets within the General Fund and thereby mitigate budgetary pressures and fiscal impacts on the General Fund Reserve. Unassigned Fund Balance – this includes the remaining spendable amounts which are not included in one of the other classifications. The General Fund is the only fund that reports a positive unassigned fund balance amount. It is the city’s policy that restricted resources will be applied first, followed by J-40 (in order of application) committed, assigned, and unassigned resources, in the absence of a formal policy adopted by the City Council. This balance is also referred to as the General Fund Reserve, which, in accordance with City Council Policy 74, must maintain a balance equal to or greater than 40% of the General Fund’s adopted operating budget. As of fiscal year end 2024-25, the General Fund Reserve is projected to have a reserve ratio of 52% and is not projected to drop below 40% until fiscal year 2032-33. Below is a 10-year forecast of the General Fund’s fund balance and its various classifications. As the General Fund’s expenditures are projected to begin exceeding its revenues beginning in fiscal year 2030-31, we can see the total fund balance amount begin to decline at that point and thereafter. As the city has done in the past, careful planning and strategic actions will be considered to ensure the projected deficit is pushed as far out into the future as possible. Fund Balance Classification FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 NonspendableInventory 12,110 12,110 12,110 12,110 12,110 12,110 12,110 12,110 12,110 12,110 Prepaid Costs 36,973 36,973 36,973 36,973 36,973 36,973 36,973 36,973 36,973 36,973 Deposits 200,432 200,432 200,432 200,432 200,432 200,432 200,432 200,432 200,432 200,432 Loans receivable 381,635 381,635 381,635 381,635 381,635 381,635 381,635 381,635 381,635 381,635 Advances to other Funds 1,167,725 1,167,725 1,167,725 1,167,725 1,167,725 1,167,725 1,167,725 1,167,725 1,167,725 1,167,725 Total Nonspendable 1,798,875 1,798,875 1,798,875 1,798,875 1,798,875 1,798,875 1,798,875 1,798,875 1,798,875 1,798,875 Restricted Section 115 Pension Trust 18,593,750$ 27,724,609$ 37,426,147$ 47,734,032$ 50,717,409$ 53,887,247$ 57,255,200$ 60,833,650$ 64,635,753$ 68,675,487$ Total Restricted 18,593,750 27,724,609 37,426,147 47,734,032 50,717,409 53,887,247 57,255,200 60,833,650 64,635,753 68,675,487 Committed Community Activity Grants 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Total Committed 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Assigned Asset Replacement Reserve 17,500,000 17,500,000 17,500,000 17,500,000 17,500,000 17,500,000 17,500,000 17,500,000 17,500,000 17,500,000 General Government 1,253,768 1,253,768 1,253,768 1,253,768 1,253,768 1,253,768 1,253,768 1,253,768 1,253,768 1,253,768 Public Safety 7,911,636 7,911,636 7,911,636 7,911,636 7,911,636 7,911,636 7,911,636 7,911,636 7,911,636 7,911,636 Community Services 4,563,010 4,563,010 4,563,010 4,563,010 4,563,010 4,563,010 4,563,010 4,563,010 4,563,010 4,563,010 Public Works 2,753,938 2,753,938 2,753,938 2,753,938 2,753,938 2,753,938 2,753,938 2,753,938 2,753,938 2,753,938 Economic Uncertainty 9,635,909 9,635,909 9,635,909 9,635,909 9,635,909 9,635,909 9,635,909 9,635,909 9,635,909 9,635,909 Total Assigned 43,618,261 43,618,261 43,618,261 43,618,261 43,618,261 43,618,261 43,618,261 43,618,261 43,618,261 43,618,261 Unassigned Unassigned 124,550,612 132,483,317 136,917,763 137,989,030 141,411,754 141,521,513 136,881,234 126,900,999 111,280,640 89,291,483 Total Unassigned 124,550,612 132,483,317 136,917,763 137,989,030 141,411,754 141,521,513 136,881,234 126,900,999 111,280,640 89,291,483 Total Fund Balance 189,561,498$ 206,625,062$ 220,761,047$ 232,140,197$ 238,546,298$ 241,825,895$ 240,553,569$ 234,151,785$ 222,333,528$ 204,384,106$ J-41 RESOLUTION NO. 2024-142. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING THE FINAL OPERATING BUDGET, STRATEGIC DIGITAL TRANSFORMATION INVESTMENT PROGRAM AND CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEAR 2024-25 FOR THE CITY OF CARLSBAD AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS FOR BUDGET FUNDS WHEREAS, the City Council of the City of Carlsbad, California, has reviewed the proposed final Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program for fiscal year (FY) 2024-25 and has held such public hearings as are necessary prior to adoption of the final budgets. 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 certain documents now on file in the Office of the City Clerk of the City of Carlsbad, entitled “Fiscal Year 2024-25 Preliminary Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program” presented at the Joint Special Meeting on May 21, 2024 as Exhibit 6 to Item No. 7, as amended, if necessary, in accordance with Attachments A-A3, B-B2, C and D to this Exhibit 1 are adopted as the final Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program for the City of Carlsbad for FY 2024-25 along with the program options and adjustments, if any, determined by the City Council as set forth in the minutes of this Joint Special Meeting on June 18, 2024. 3. That the amounts reflected as estimated revenues for FY 2024-25 as shown in Attachments A-A2 and B are adopted as the budgeted revenues for FY 2024-25. 4. That the amounts as designated as the FY 2024-25 Budget request in Attachments A-A3, B-B2 and D are appropriated to the department or fund for which they are designated, and such appropriation shall not be increased except as provided in this resolution. 5. That the items and amounts as shown in Attachment E are adopted as major capital outlay items for FY 2024-25. J-42 6.That total appropriations for each fund may only be increased or decreased by the City Council by passage of a resolution amending the budget except as provided in this resolution. 7.That the following controls are placed on the use and transfer of budget funds: A.No expenditure of funds shall be authorized unless sufficient funds have been appropriated by the City Council or City Manager as described below. i.The City Manager may authorize all transfers of funds from account to account within any department. ii.The City Manager may authorize transfers of funds between departments within the same fund in an amount up to $100,000 per transfer. iii.The City Manager may authorize transfers of funds from the Housing Trust Fund to the Section 8 Housing Fund program administration to support the program’s fund balance and aid in the expansion of the program if costs exceed budget related to administration, payroll, vouchers, and related costs. iv.The City Manager may authorize budget adjustments involving offsetting revenues and expenditures; the City Manager may authorize increases in an appropriation for a specific purpose where the appropriation is offset by unbudgeted revenue designated for the specific purpose. v.The City Manager may authorize budget adjustments to increase the appropriation for the Workers’ Compensation and Risk Management Funds’ operating budgets in an amount equal to the increases in costs of claims expenses or estimated losses and liabilities. vi.The City Manager may authorize budget adjustments to increase the appropriation for final vacation pay and earned leave accrual budgets in an amount equal to the increases in actual expenses should they exceed budgeted amounts in their respective funds. vii.The City Manager may authorize budget adjustments to increase budgeted amounts for depreciation and amortization should it be necessary to maintain compliance with the United States Generally Accepted Accounting Principles. J-43 viii. The City Manager may authorize increases of 15% or less to purchasing authority for capital outlay items requiring the City Council to act as the awarding authority approved in the budget process. ix. The City Manager may authorize budget adjustments to increase the appropriation for unforeseen legal expenses and liabilities. x. The City Manager may authorize budget adjustments to increase the appropriation for Mutual Aid expenses in an amount equal to the increases in amounts to be reimbursed by other agencies. xi. The City Council must authorize all transfers of funds from the City Council’s Contingency Account. xii. The City Manager may delegate any of the authority given to the City Manager under this resolution. B. The City Council must authorize any increase in the number of authorized permanent personnel positions above the level identified in Attachment C. C. The City Manager may authorize the hiring of temporary or part-time staff as necessary within the limits imposed by the controls listed above. 8. That the legal level of budgetary control is the fund level. Budgets may not legally be exceeded at the fund level without appropriate authorization by the City Council. 9. That interest earned on grants may be appropriated during the year for the purpose for which the grant was received. 10. That all appropriations in the Capital Improvement Program remaining unexpended as of June 30, 2024, are appropriated to FY 2024-25 in their respective project budgets. 11. That all appropriations in the Strategic Digital Transformation Investment Program remaining unexpended as of June 30, 2024, are appropriated to FY 2024-25 in their respective project budgets. 12. That all appropriations in the Operating Budget remaining unexpended as of June 30, 2024 related to developer deposits received for developer-funded studies not yet completed or grant awards received or expected for projects that are continuing into the next fiscal year are appropriated to FY 2024-25. 13. That all appropriations for outstanding encumbrances as of June 30, 2024, are continued into FY 2024-25 for such contracts or obligations. 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 Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 18th day of June, 2024, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA. NONE. NONE. NONE. SHERRY F (SEAL) J-44 J-45 RESOLUTION NO. 1740. A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING THE WATER DISTRICT’S FINAL OPERATING BUDGET, STRATEGIC DIGITAL TRANSFORMATION INVESTMENT PROGRAM AND CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEAR 2024-25 AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS FOR BUDGET FUNDS WHEREAS, the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad, California, has reviewed the proposed final Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program for Fiscal Year (FY) 2024-25 and has held such public hearings as are necessary prior to the adoption of the final budgets. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That certain documents now on file in the Office of the City Clerk of the City of Carlsbad, entitled “Fiscal Year 2024-25 Preliminary Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program” presented at the Joint Special Meeting on May 21, 2024 as Exhibit 6 to Item No. 7, as amended, if necessary, in accordance with Attachments A and B to this Exhibit 2 are adopted as the final Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program for the Carlsbad Municipal Water District for FY 2024-25 along with the program options and adjustments, if any, determined by the Board of Directors as set forth in the minutes of this Joint Special Meeting on June 18, 2024. 3. That the amounts reflected as estimated revenues for FY 2024-25 as shown in Attachment A are adopted as the budgeted revenues for FY 2024-25. 4. That the amounts designated as FY 2024-25 Budgets in Attachments A and B to this Exhibit 2 and the City of Carlsbad’s estimated share of the FY 2024-25 Operating and Capital Budget of Encina Wastewater Authority attributable to the Carlsbad Water Recycling Facility as presented in Attachment C to this Exhibit 2 are appropriated to the fund for which they are designated, either operating or capital improvement, and such appropriation shall not be increased except as provided in this resolution. J-46 5. That total appropriations may only be increased or decreased by the Board of Directors by passage of a resolution amending the budget except as provided in this resolution. 6. That the following controls are placed on the use and transfer of budget funds: A. No expenditure of funds shall be authorized unless sufficient funds have been appropriated by the Board of Directors or Executive Manager as described below. i. The Executive Manager may authorize all transfers of funds from account to account within the same fund. ii. The Executive Manager may authorize budget adjustments involving offsetting revenues and expenditures; the Executive Manager may authorize increases in an appropriation for a specific purpose where the appropriation is offset by unbudgeted revenue designated for the specific purpose. iii. The Executive Manager may authorize increases in purchased water appropriations in an amount equal to the same percent that water sales exceed the amount of the original revenue estimate. iv. The Executive Manager may authorize budget adjustments to increase the appropriation for unforeseen legal expenses and liabilities. v. The Executive Manager may delegate the authority given to the Executive Manager under this resolution. B. The Board of Directors must authorize any increase in the number of authorized permanent personnel positions chargeable to the water and recycled water enterprise funds above the level identified in the final Budget. The Executive Manager may authorize the hiring of temporary or part time staff chargeable to the water and recycle water enterprise funds as necessary within the limits imposed by the controls listed above. 7. That all appropriations for outstanding encumbrances as of June 30, 2024 are continued into FY 2024-25 for such contracts and obligations. 8. That interest earned on grants may be appropriated during the year for the purpose for which the grant was received. 9. That all appropriations for Capital Improvement Projects remaining unexpended at June 30, 2024, are appropriated to FY 2024-25 in their respective project budgets. 10.That all appropriations in the Strategic Digital Transformation Investment Program remaining unexpended at June 30, 2024, are appropriated to FY 2024-25 in their respective project budgets. 11.That all appropriations in the Operating Budget remaining unexpended at June 30, 2024 related to grant awards received or expected for projects that are continuing into the next fiscal year are appropriated to FY 2024-25. PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Board of Directors of the Carlsbad Municipal Water District, the C_ity Council of the City of Carlsbad, the Board of Directors of the Carlsbad Public Financing Authority, the Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 18th day of June, 2024, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA. NONE. NONE. NONE. SHERRY FRE SINGER, Seer tary (SEAL) J-47 J-48 RESOLUTION NO. 567. A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING THE FINAL OPERATING BUDGET OF THE CARLSBAD HOUSING AUTHORITY FOR FISCAL YEAR 2024-25 AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS FOR BUDGET FUNDS WHEREAS, the Community Development Commission of the City of Carlsbad, California (Commission), has reviewed the Operating Budget for the Carlsbad Housing Authority for fiscal year (FY) 2024-25 and has held such public hearings as are necessary prior to the adoption of the final budget. NOW, THEREFORE, BE IT RESOLVED by the Community Development Commission of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That certain documents now on file in the Office of the City Clerk of the City of Carlsbad, entitled “Fiscal Year 2024-25 Preliminary Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program,” presented at the Joint Special Meeting on May 21, 2024 as Exhibit 6 to Item No. 7, as amended, if necessary, in accordance with Attachments A of this Exhibit 3 are adopted as the final Operating Budget for the Carlsbad Housing Authority for FY 2024-25, along with the program options and adjustments, if any, determined by the Commission as set forth in the minutes of this Joint Special Meeting on June 18, 2024. 3. That all funding for planning and administrative expenses have been determined to be necessary and appropriate for implementation of the Carlsbad Housing Authority’s activities in FY 2024-25. 4. That the amounts reflected as estimated revenues for FY 2024-25 as shown in Attachment A are adopted as the budgeted revenues for FY 2024-25. 5. That the amount designated as FY 2024-25 Budget request in Attachment A to this Exhibit 3 is appropriated to the fund for which it is designated, and such appropriation shall not be increased except as provided in this resolution. 6. That the following controls are placed on the use and transfer of budget funds: J-49 A. No expenditure of funds shall be authorized unless sufficient funds have been appropriated by the Commission or Executive Director as described below. i. The Executive Director may authorize all transfers of funds from account to account within the same fund. ii. The Executive Director may delegate any of the authority given to the Executive Director under this resolution. iii. The Executive Director may authorize budget adjustments involving offsetting revenues and expenditures; the Executive Director may authorize increases in an appropriation for a specific purpose where the appropriation is offset by unbudgeted revenue designated for the specific purpose. B. The Commission must authorize any increase in the number of authorized permanent personnel positions chargeable to the Carlsbad Housing Authority above the level identified in the final budget. The Executive Director may authorize the hiring of temporary or part time staff chargeable to the Carlsbad Housing Authority as necessary within the limits imposed by the controls listed above. 7. That all appropriations for any state or federal grant funds in the Operating Budget remaining unexpended as of June 30, 2024, are appropriated to FY 2024-25. 8. That all outstanding encumbrances as of June 30, 2024, are continued into FY 2024-25 for such contracts and obligations. PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Community Development Commission, 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, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 18th day of June, 2024, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA. NONE. NONE. NONE. RN, Chairperson SCOTT CHADWICK, Secretary {SEAL) J-50 J-51 RESOLUTION NO. 97. A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD PUBLIC FINANCING AUTHORITY OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING THE FINAL OPERATING BUDGET AND CAPITAL IMPROVEMENT PROGRAM OF THE CROSSINGS AT CARLSBAD MUNICIPAL GOLF COURSE FOR FISCAL YEAR 2024-25 AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS FOR BUDGET FUNDS WHEREAS, the Board of Directors of the Carlsbad Public Financing Authority has reviewed the proposed final Operating Budget for The Crossings at Carlsbad Municipal Golf Course for fiscal year (FY) 2024-25 and has held such public hearings as are necessary prior to the adoption of the final budgets. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Public Financing Authority as follow: 1. That the above recitations are true and correct. 2. That certain documents now on file in the Office of the City Clerk of the City of Carlsbad, entitled “Fiscal Year 2024-25 Preliminary Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program,” presented at the Joint Special Meeting on May 21, 2024 as Exhibit 6 to Item No. 7, as amended, if necessary, in accordance with Attachment A to this Exhibit 4 are adopted as the final Operating and Capital Improvement Program Budgets for The Crossings at Carlsbad Municipal Golf Course for FY 2024-25 along with the program options and adjustments, if any, determined by the Board of Directors as set forth in the minutes of this Joint Special Meeting on June 18, 2024. 3. That the amounts reflected as estimated revenues for FY 2024-25 as shown in Attachment A are adopted as the budgeted revenues for FY 2024-25. 4. That the amount designated as FY 2024-25 Budget request in Attachment A to this Exhibit 4 is appropriated to the fund for which it is designated, and such appropriation shall not be increased except as provided in this resolution. 5. That the items and amounts as shown in Attachment B to this Exhibit 4 are adopted as major capital outlay items for FY 2024-25. 6. That the following controls are placed on the use and transfer of budget funds: A. No expenditure of funds shall be authorized unless sufficient funds have been appropriated by the Board of Directors or Executive Director as described below. i. The Executive Director may authorize all transfers of funds from account to account within the same fund. ii. The Executive Director may delegate the authority to make budget transfers and adjustments. iii. The Executive Director may authorize budget adjustments involving offsetting revenues and expenditures; the Executive Director may authorize increases in an appropriation for a specific purpose where the appropriation is offset by unbudgeted revenue which is designated for the specific purpose. iv. The Executive Director may delegate any of the authority given to him or her under this resolution. 7. That all outstanding encumbrances as of June 30, 2024, are continued into FY 2024-25 for such contracts and obligations. 8. That all appropriations in the Capital Improvement Program remaining unexpended as of June 30, 2024, are appropriated to FY 2024-25 for their respective project budgets. PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Board of Directors of the Carlsbad Public Financing Authority, the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, 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 18th day of June, 2024, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA. NONE. NONE . NONE. SHERR · (SEAL) Chairperson J-52 J-53 RESOLUTION NO. 2024-143. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ACTING AS THE SUCCESSOR AGENCY FOR THE CARLSBAD REDEVELOPMENT AGENCY, ADOPTING THE FINAL OPERATING BUDGET OF THE SUCCESSOR AGENCY AND THE ENFORCEABLE DEBT OBLIGATIONS OF THE CITY OF CARLSBAD’S REDEVELOPMENT OBLIGATION RETIREMENT FUND FOR FISCAL YEAR 2024-25 AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS FOR BUDGET FUNDS WHEREAS, the City Council of the City of Carlsbad, California has been designated as the Successor Agency for the Carlsbad Redevelopment Agency (Successor Agency) and, as such, is responsible for the administrative responsibilities required to complete the work of the former Carlsbad Redevelopment Agency and repay all enforceable debt obligations; and WHEREAS, the Successor Agency and the appointed Oversight Board have reviewed the proposed Operating Budget for the Successor Agency and previously approved the enforceable debt obligations to be repaid from the Redevelopment Obligation Retirement Fund for fiscal year (FY) 2024- 25; and WHEREAS, the Successor Agency finds that the proposed Operating Budget for the Agency and the Oversight Board approved enforceable debt obligations of the Redevelopment Obligation Retirement Fund are consistent with the Recognized Obligation Payment Schedule prepared by the Successor Agency and approved by the Oversight Board; and WHEREAS, public hearings have been held as necessary prior to the adoption of the final operating budget. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, acting as Successor Agency for the Carlsbad Redevelopment Agency, as follows: 1. That the above recitations are true and correct. 2. That certain documents now on file in the Office of the City Clerk of the City of Carlsbad, entitled “Fiscal Year 2024-25 Preliminary Operating Budget,” presented at the Joint Special Meeting on May 21, 2024 as Exhibit 6 to Item No. 7, as amended, if necessary, in accordance with Attachment A to this Exhibit 5 are adopted as the final Operating Budget for the Successor Agency and the enforceable debt obligations of the City of Carlsbad’s Redevelopment Obligation Retirement Fund for FY 2024-25, along with the J-54 program options and adjustments, if any, determined by the Successor Agency as set forth in the minutes of this Joint Special Meeting of June 18, 2024. 3. That the amounts reflected as estimated revenues for FY 2024-25 as shown in Attachment A to this Exhibit 5 are adopted as the budgeted revenues for FY 2024-25. 4. That the amount designated as FY 2024-25 Budget request in Attachment A to this Exhibit 5 is appropriated to the fund for which it is designated, and such appropriation shall not be increased except as provided in this resolution. 5. That the following controls are placed on the use and transfer of budget funds: A. No expenditure of funds shall be authorized unless sufficient funds have been appropriated by the Successor Agency or City Manager, as described below. i. The City Manager may authorize all transfers of funds from account to account within the same fund. ii. The City Manager may delegate any authority given to the City Manager under this resolution. iii. The City Manager may authorize budget adjustments involving offsetting revenues and expenditures; the City Manager may authorize increases in an appropriation for a specific purpose where the appropriation is offset by unbudgeted revenue designated for the specific purpose and is approved in advance by the Oversight Board. 6. That all outstanding encumbrances as of June 30, 2024, are continued into FY 2024-25 for such contracts and obligations, as approved by the Oversight Board. PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council as Successor Agency to the Carlsbad Redevelopment Agency, 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 and the Community Development Commission held on the 18th day of June, 2024, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA. NONE. NONE. NONE. J-55 J-56 RESOLUTION NO. 2024-144. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ESTABLISHING THE FISCAL YEAR 2024-25 APPROPRIATION LIMIT AS REQUIRED BY ARTICLE XIIIB OF THE CALIFORNIA STATE CONSTITUTION AND STATE LAW WHEREAS, Article XIIIB of the California State Constitution requires that governments annually establish a limit on the appropriation of proceeds of taxes commonly known as the “Gann Limit”; and WHEREAS, state law requires that this limit be presented to the governing body of each entity each fiscal year; and WHEREAS, the Gann Limit is based on a combination of a population factor and an inflation factor as outlined in Attachment A; and WHEREAS, the City Council desires at this time and deems it to be in the best public interest to adopt the annual Gann Limit for fiscal year (FY) 2024-25 as listed in Attachment A to this Exhibit 6. 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 City Council of the City of Carlsbad, California, establishes and adopts the FY 2024-25 appropriation limit of $630,004,237 as computed in Attachment A to this Exhibit 6. 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 Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 18th day of June, 2024, by the following vote, to wit: AYES: NAYS: ABSENT: BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA. NONE. NONE. ABSTAIN: NONE. , City Clerk J-57 J-58 RESOLUTION NO. 2024-145. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING CHANGES TO THE MASTER FEE SCHEDULE WHEREAS, the City Council of the City of Carlsbad, California, has the authority to establish fees for city services; and WHEREAS, from time to time the fees are reviewed and evaluated to maintain an adequate fee structure recovering costs for city services; and WHEREAS, the City Council has determined the cost of providing general and development- related services; and WHEREAS, the City Council believes it is necessary for the City Manager to have the authority to adjust the parks and recreation and library and arts program and classes fees from time to time to remain competitive and within the market pricing for like programs and classes; and WHEREAS, the City Council finds it necessary to recover the costs for city services; and WHEREAS, the City Council has held the necessary public hearing and allowed for public comment on the establishment of the fees. 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 changes to the Master Fee Schedule as shown in Attachment A are adopted. 3. The City Council authorizes the City Manager or a designee to set parks and recreation and library and cultural arts program, rental, and class fees that are included in the Community Services Guide. The fees shall not exceed the fully burdened, including direct and indirect, costs of providing the program, rental, and class but shall be no less (except in the case of introductory, discount or promotional pricing) than the lowest fee charged for like kind programs or classes in similarly benchmarked Southern California cities. 4. The City Council authorizes the City Manager or a designee to change vehicle and traffic violation fees at the time, and by the same amount, as the state changes its portion of the fine. Any changes to these fees will be made to the current Master Fee Schedule. 5. This resolution shall become effective on Sept. 1, 2024; not sooner than 60 days after adoption in accordance with California Government Code Section 66017 for development-related service fees and development impact fees. 6. Per the contract with Republic Services, changes to the recycling and trash fees as shown in Attachment A shall become effective on July 1, 2024. 7. The park land in-lieu fees separately approved by the City Council on April 23, 2024, and incorporated into Attachment A will become effective on July 1, 2024. 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 Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 18th day of June, 2024, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA. NONE. NONE. NONE. SHERR (SEAL) J-59 J-60 RESOLUTION NO. 1741. A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING CHANGES TO THE MASTER FEE SCHEDULE WHEREAS, the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad, California, has the authority to establish fees for district services; and WHEREAS, from time to time the fees are reviewed and evaluated to maintain an adequate fee structure recovering costs for district services; and WHEREAS, the Board of Directors has determined the cost of providing water services; and WHEREAS, the Board of Directors finds it necessary to recover the costs for water services; and WHEREAS, the Board of Directors has held the necessary public hearing and allowed for public comment on the establishment of the fees. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the changes to the Master Fee Schedule as shown in Attachment A are adopted. 3. This resolution shall become effective on Sept. 1, 2024; not sooner than 60 days after adoption in accordance with California Government Code Section 66017 for water fees. PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Board of Directors of the Carlsbad Municipal Water District, the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Public Financing Authority, the Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 18th day of June, 2024, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA. NONE. NONE. NONE. SHERR (SEAL) J-61 J-62 RESOLUTION NO. 568. A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING CHANGES TO THE MASTER FEE SCHEDULE WHEREAS, the Community Development Commission of the City of Carlsbad, California (Commission) has the authority to establish fees for housing services; and WHEREAS, from time to time the fees are reviewed and evaluated to maintain an adequate fee structure recovering costs for housing services; and WHEREAS, the Community Development Commission has determined the cost of providing housing services; and WHEREAS, the Community Development Commission finds it necessary to recover the costs for housing services; and WHEREAS, the Community Development Commission has held the necessary public hearing and allowed for public comment on the establishment of the fees. NOW, THEREFORE, BE IT RESOLVED by the Community Development Commission of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the changes to the Master Fee Schedule as shown in Attachment A are adopted. 3. This resolution shall become effective on Sept. 1, 2024; not sooner than 60 days after adoption in accordance with California Government Code Section 66017 for housing fees. PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Community Development Commission, 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, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 18th day of June, 2024, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA. NONE. NONE. NONE. SCOTT CHADWICK, Secretary (SEAL) J-63 J-64 RESOLUTION NO. 2024-147. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, DESIGNATING $17,500,000 OF THE CITY’S UNASSIGNED FUND BALANCE IN THE GENERAL FUND AS OF JULY 1, 2024, FOR ASSET REPLACEMENT WHEREAS, the City Council of the City of Carlsbad, California, commits to maintaining its large machinery and equipment inventory; 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. WHEREAS, the city’s General Fund is projected to need $17,500,000 over the next ten fiscal years to replace machinery and equipment that are expected to reach the end of their respective useful lives; WHEREAS, with the establishment of the Asset Replacement Reserve and a $17,500,000 contribution, as of June 30, 2025, the General Fund Reserve would have a projected reserve ratio of 55% and $36 million in excess of City Council Policy No. 74 – General Fund Reserve’s requirement of 40% or $95 million; WHEREAS, the Asset Replacement Reserve will 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 amount of $17,500,000 from the city’s unassigned fund balance in the General Fund as of July 1, 2024, will be moved to the Asset Replacement Reserve 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 18th day of June, 2024, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA. NONE. NONE. NONE. , Mayor J-65 J-66 RESOLUTION NO. 2024-148. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE CITY OF CARLSBAD’S SHARE OF THE FISCAL YEAR 2024-25 OPERATING AND CAPITAL BUDGETS OF THE ENCINA WASTEWATER AUTHORITY WHEREAS, the City of Carlsbad is a Member Agency to the Encina Joint Powers Agreement (the Encina Agreement) entered into on July 13, 1961, for the acquisition, construction, ownership, operation and maintenance of the Encina Joint Sewer System; and WHEREAS, the Encina Agreement requires approval for the budget of the Encina Wastewater Authority, or EWA, by the Member Agencies following the recommendation of the Joint Advisory Committee, or JAC; and WHEREAS, the City Council of the City of Carlsbad desires to approve the EWA’s budget and provide for the payment of the city’s share of the EWA’s expenses in accordance with the allocation provided in the Encina Agreement; and WHEREAS, the Wastewater Fund is projected to have sufficient funds for the payments as they become due. 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 City of Carlsbad’s estimated share of the FY 2024-25 Operating Budget of the EWA as approved by the JAC on April 24, 2024, in the amount of $6,124,537 for Wastewater Plant Operations and $1,926,044 for the Carlsbad Water Recycling Facility Operations, as described in Attachment A, is approved. 3. That the City of Carlsbad’s estimated share of the FY 2023-24 Capital Budget of the EWA as approved by the JAC on April 24, 2024, in the amount of $7,345,555 for Wastewater Plant Capital and $448,000 for Carlsbad Water Recycling Facility Capital, as described in Attachment A, is approved. 4. That the City Manager, or a designee, is authorized to approve appropriations to the EWA estimated budgets listed above based on the City of Carlsbad’s actual share of the EWA budget. 5. That all outstanding operating encumbrances as of June 30, 2024 are continued into FY 2024-25 for such contracts and obligations. 6. That all Capital Improvement Program budget appropriations and outstanding encumbrances as of June 30, 2024 are continued into FY 2024-25 for such contracts and obligations. 7. That the City Manager, or a designee, is authorized to make payments on behalf of the City of Carlsbad to the EWA in accordance with the budget as approved by the JAC . pursuant to the Encina Agreement. 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 Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 18th day of June, 2024, by the following vote, to wit: AYES: NAYS: ABSTAIN : ABSENT: BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA. NONE. NONE. NONE. SHERR (SEAL) J-67 J-68 RESOLUTION NO. 2024-149. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, DETERMINING THAT THE FISCAL YEAR 2024-25 CAPITAL IMPROVEMENT PROGRAM IS CONSISTENT WITH THE GENERAL PLAN AND APPLICABLE CLIMATE ACTION PLAN MEASURES AND ACTIONS WHEREAS, the City Council of the City of Carlsbad, California has reviewed the Capital Improvement Program for FY 2024-25 and has held such public hearings as are necessary prior to adoption of the Capital Improvement Program; and WHEREAS, on June 18, 2024, the City Council reviewed for consistency with the General Plan goals and policies all Capital projects receiving an allocation of funds for FY 2024-25 pursuant to Carlsbad Municipal Code Section 2.24.040(B); and WHEREAS, the City Council also reviewed the FY 2024-25 Capital Improvement Program projects for consistency with applicable Climate Action Plan measures and actions; and WHEREAS, upon hearing and considering all testimony and arguments, if any, of all persons desiring to be heard, the City Council considered all factors relating to the City Council determination. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 14. That the above recitations are true and correct. 15. That based on the evidence presented at the hearing, the City Council determines that the Capital Improvement Program for FY 2024-25 is consistent with the General Plan based on the following findings: a) The projects are consistent with the goals and policies of the city’s General Plan in that the projects are required to ensure the provision of adequate public facilities and services concurrent with or prior to need. J-69 b) The projects are consistent with applicable goals and policies of the Arts, History, Culture, and Education; Land Use and Community Design; Mobility; Public Safety; and Sustainability Elements, as described in Attachment A. c) Specific projects are consistent with, and support Climate Action Plan greenhouse gas reduction measures and actions, if applicable, as described in Attachment A. d) As required by the General Plan, the proposed improvements are consistent with the city’s Growth Management Plan in that the projects ensure that the necessary improvements are provided for facilities maintenance, park development, recycled water, sewer and storm drain projects, and circulation systems, in accordance with the performance standards contained in the city’s Growth Management regulations. 16. This action is final as of the date this resolution is adopted by the City Council. The Provisions of Chapter 1.16 of the Carlsbad Municipal Code, “Time Limits for Judicial Review” shall apply: “NOTICE” The time within which judicial review of this decision must be sought is governed by Code of Civil Procedure, Section 1094.6, which has been made applicable in the City of Carlsbad by Carlsbad Municipal Code Chapter 1.16. Any petition or other action seeking review must be filed in the appropriate court not later than the ninetieth day following the date on which this decision becomes final; however, if within ten days after the decision becomes final a request for the record is filed with a deposit in an amount sufficient to cover the estimated cost or preparation of such record, the time within which such petition may be filed in court is extended to not later than the thirtieth day following the date on which the record is either personally delivered or mailed to the party, or his attorney of record, if he has one. A written request for the preparation of the record of the proceedings shall be filed with the City Clerk, City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad, CA 92008. 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 Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 18th day of June, 2024, by the following vote, to wit: AYES : NAYS: ABSTAIN: ABSENT: BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA. NONE. NONE. NONE. J-70 J-71 RESOLUTION NO. 2024-150 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING A LIST OF PROJECTS AND AUTHORIZING THE ALLOCATION OF ROAD MAINTENANCE AND REHABILITATION ACCOUNT FUNDS TO THE PAVEMENT MANAGEMENT AND CONCRETE REPLACEMENT PROGRAMS FOR FISCAL YEAR 2024-25 WHEREAS, the state Legislature enacted Senate Bill 1 (SB 1), referred to as the Road Repair and Accountability Act of 2017, in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the city residents are aware of projects proposed for funding as well as those projects that have been completed each fiscal year; and WHEREAS, the city must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion and the estimated useful life of the improvement; and WHEREAS, staff estimate the city will receive $2,900,000 in Road Maintenance and Rehabilitation Account funding during FY 2024-25; and WHEREAS, an available fund balance of $228,000 exists, which when added with the FY 2024- 25 estimated revenue projection of $2,900,000 results in a total Road Maintenance and Rehabilitation Account funding of $3,128,000, which includes $228,000 of unallocated funding; and WHEREAS, this will be the eighth year in which the city will receive Road Maintenance and Rehabilitation Account funding, which will enable the city to continue essential road maintenance and rehabilitation projects thereby increasing access and mobility options for the traveling public; and WHEREAS, the city has undergone a process to solicit public input into the community’s transportation priorities as part of the Capital Improvement Program approval process; and WHEREAS, the city utilizes a pavement management system to ensure that Road Maintenance and Rehabilitation Account revenues are being used in a prioritized and cost-effective manner; and WHEREAS, the funding from the Road Maintenance and Rehabilitation Account will help the city maintain and rehabilitate its network of roads and provide concrete improvements and similar projects in the future; and J-72 WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found that the city’s streets and roads are in a good condition and this revenue will help the city increase the overall quality of its road system; and WHEREAS, the Road Maintenance and Rehabilitation Account project list and overall investment in local streets and roads infrastructure with a focus on basic maintenance and safety will have a significant benefit to the community. 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 Pavement Management Program, CIP Project No. 6001, as further described herein, will be funded in part with FY 2024-25 Road Maintenance and Rehabilitation Account revenues: a. Project Title: Pavement Overlay and Slurry Projects b. Description: resurface and rehabilitate a selection of publicly maintained streets on an annual basis c. Location: various residential streets throughout the city based on pavement condition, including the following collector and arterial streets: i. El Camino Real between Oceanside City Limit and Marron Road ii. El Camino Real between Marron Road and Chestnut Avenue iii. El Camino Real between Levante Street and Encinitas City Limit iv. Paseo Del Norte between Cannon Road and Palomar Airport Road v. Paseo Del Norte between Camino de las Ondas and Poinsettia Lane vi. The Crossings Drive between Palomar Airport Road and the end of the drive vii. El Fuerte Street between Faraday Avenue and approximately 1,000 feet south of Rancho Pancho viii. Bressi Ranch Way between El Fuerte Street and Paradise Road ix. Batiquitos Drive between Kestrel Drive and Aviara Parkway x. Calle Barcelona between Encinitas City Limit and Calle Acervo xi. Rancho Sante Fe Road between Camino Alvaro and Calle Barcelona xii. Camino De Los Coches between Rancho Santa Fe Road and La Costa Avenue J-73 xiii. Harding Street between Grand Avenue and Oak Avenue xiv. Tamarack Avenue between Knollwood Drive and Saddle Drive xv. Faraday Avenue between El Camino Real and Orion Way xvi. Palomar Airport Road (eastbound lanes) between I-5 and El Camino Real d. Estimated Project Schedule: July 2024 – June 2025 e. Estimated Useful Life: fog seal has a useful life of approximately three years, slurry seal has a useful life of approximately five years, and asphalt concrete overlay has a useful life of approximately 20 years 3. That the Concrete Replacement Program, CIP Project No. 6013, as further described herein, will be funded in part with FY 2024-25 Road Maintenance and Rehabilitation Account revenues: a. Project Title: Concrete Replacement Program b. Description: repair and replace broken and uplifted concrete in the public right of way c. Location: various residential locations throughout the city based on concrete condition, including locations along the following collector and arterial streets: i. Bressi Ranch Way between El Fuerte Street and Paradise Road ii. Tamarack Avenue between Knollwood Drive and Saddle Drive iii. Faraday Avenue between El Camino Real and Orion Way iv. Lower Boardwalk along Carlsbad Boulevard between Pine Avenue to Tamarack Avenue d. Estimated Project Schedule: July 2024 – June 2025 e. Estimated Useful Life: concrete improvements typically have a useful life of approximately 50 years 4. That funding to allocate Road Maintenance and Rehabilitation Account funding in the amount of $2,450,000 to the Pavement Management Program, CIP Project No. 6001, and $580,000 to the Concrete Replacement Program, CIP Project No. 6013 was incorporated into the in the FY 2024-25 CIP budget. 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 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 Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 18th day of June, 2024, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA. NONE. NONE. NONE. KEITH BLACKBURN, Mayor SHERRY (SEAL) J-74