Carlsbad Projects Balanced Budget with Prudent Investment in Services and Reserves

The City of Carlsbad’s proposed budget for next fiscal year invests in the community’s highest priorities, sets aside money for future infrastructure needs and grows the city’s cash reserves – all while projecting a balanced budget through fiscal year 2031.

While economic uncertainty remains due to factors like low consumer confidence, tariffs and the potential for rising inflation, the city remains financially healthy today with a AAA credit rating, strong reserves and among the lowest pension debts in the region.

The preliminary budget for fiscal year 2025-26 is now available for review and will be presented to the City Council at its May 20 meeting. A community budget workshop will follow on May 22 to provide community members with an opportunity to learn more and ask questions.

What’s in the budget?

The proposed $242.8 million spending plan covers most day-to-day city services and includes a 1.8% increase, or $4 million over last year’s General Fund budget. This increase remains well below the regional inflation rate of 3.8%.

The proposed spending plan would also increase the city’s General Fund reserve level beyond the required 40% to 61% or $147 million. Last year’s budget reserve level was 55%.

The proposed fiscal year 2025-26 spending plan allows the city to continue investing in projects and services that support the City Council’s 5-Year Strategic Plan goals.

Key investments proposed include:

Public safety

Increasing Fire Department service capacity through the purchase of a new aerial ladder fire truck projected to cost $2.6 million
Reclassifying six EMTs to paramedic firefighters in a multi-year effort to enhance emergency response
Sustainability

Advancing initiatives in the City Council’s adopted Climate Action Plan to meet council-directed sustainability goals, including switching all of the energy used to power city government buildings, facilities and operations to the Clean Energy Alliance’s 100% renewable energy option
Accelerate the replacement of the city’s combustion engine fleet with the purchase of 14 electric and 15 hybrid vehicles
Community character & connection

Construction of Veterans Memorial Park, which is expected to begin late this year. The 93.7-acre site will honor veterans for their service and celebrate the site’s natural beauty and views. It will feature family-oriented amenities, and minimize environmental impacts by maintaining over half of the land as protected habitat
Expanded support of program offerings and services at the newly upgraded Schulman Auditorium at the Dove Library
Continuing mid-year commitments
The proposed budget also incorporates continued funding to support initiatives approved by the City Council earlier this year as part of the mid-year budget:

Continued funding for fire mitigation and preparedness efforts by an additional $550,000 for brush and vegetation management across the city’s 6,500 acres of preserves and hazard reduction within the city-owned urban forests such as Hosp Grove
Six positions in the Police Department to improve response times, assist with traffic mitigation particularly for special events, enhance digital forensics services and assist in resolving internet crimes against children
Maintain the return of Sunday hours at the city’s Georgina Cole Library and Carlsbad City Library on Dove Lane, which begin May 18
The city operates on a fiscal year that goes from July 1 to June 30. The final city budget will be presented for City Council approval during a public hearing June 17.

At a glance

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