CA Review AZ
Meeting Date Dec. 9, 2025
To: Mayor and City Council/President and Board of Directors From: Geoff Patnoe, City Manager/Executive Manager
Staff Contact: Kim Riboni, Finance Manager
[email protected], 442-339-5737
Subject: Annual Financial Information Report on Capital Project Funds and Special Taxes
Districts: All
Recommended Actions
1) Adopt a resolution of the City Council of the City of Carlsbad accepting the Annual Financial Information Report on Capital Project Funds and Special Taxes; and 2) Adopt a resolution of the Board of Directors of Carlsbad Municipal Water District accepting the Annual Financial Information Report on Capital Project Funds.
Executive Summary
Local agencies such as the City of Carlsbad and the Carlsbad Municipal Water District are required to report the status of certain fees and special taxes each year under California Government Code Sections 50075.3, 66001 and 66006 to
ensure transparency, accountability,
and proper use of public funds, particularly special taxes, fees and charges.
Sections 66001 and 66006 also require the governing body of the local agency to periodically make certain findings regarding any fee established, increased or imposed after Jan. 1, 1989.
All the required findings for the city and CMWD are included in the resolutions in Exhibit 1, for the City Council, and Exhibit 2, for the CMWD Board, and the reports are included as Attachment A to the resolutions.
Explanation & Analysis
The disclosure requirements set forth in California Government Code Article 3.5, Voter- Approved Special Taxes, Sections 50075 – 50077.5, are intended to gain voters’ confidence and support of special taxes by demonstrating that local agencies will spend any special tax funds on the facilities and services for which they were intended. To accomplish this goal, Section 50075.1 requires that any local special tax that is subject to voter approval:
• Contain a statement indicating the specific purposes of the special tax • Have a requirement that the proceeds of the special tax be applied to those purposes • Use a separate account into which the proceeds shall be deposited • Have an annual report containing information regarding the use of proceeds Dec. 9, 2025
Item #1 Page 1 of 22
Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2 The first three requirements of Section 50075.1 are met through the formation of a special tax district. The fourth is satisfied annually under Section 50075.3, which requires the chief fiscal officer of the local agency to file a report with its governing body that contains:
• The amount of funds collected and expended
• The status of any project required or authorized to be funded The report required by Section 50075.3 is provided as Attachment A to the resolution in Exhibit 1.
Government Code Section 66006 requires a local agency to also annually report certain financial information related to any capital funds that were established to track fees charged in connection with the approval of a development project. The report is required to include:
• A description of the fee
• The amount of the fee
• The beginning and ending balance of the fund
• The amount of the fees collected, and interest earned • The identification and amount of each public improvement on which fees were expended
• The total percentage of the project funded by the fee • The approximate date by which the construction of the public improvement will begin • The reasons for any delay to a previously reported construction date and a revised approximate construction date
• A description of each interfund transfer or loan, including the project to be funded with the loan, the approximate date of repayment and rate of interest • Any refunds made to developers in accordance with the code Additionally, under Section 66006, the local agency is required to make the report available to the public at least 15 days before a scheduled public meeting. The report was made available on the city website on the Finance Department’s Financial Reports page on Nov. 14, 2025. 1 The reports in Attachment A to Exhibits 1 and 2 also provide all the information required by Section 66006 for development fees that fall under this disclosure requirement.
Certain ending fund balances exclude advances and loans, which may result in a fund balance that is lower than the appropriated balance. The loans and advances may be paid through future collections of fees.
The reported fund balances could be subject to refunds, though there are no refunds due at the time of this report. Funds being reviewed for eligible refunds include those for the city’s Bridge and Thoroughfare District No. 2 and Bridge and Thoroughfare District No. 3. The improvement projects that those districts were established to fund have been completed, so staff plan to return to the City Council in 2026 with a recommendation to close out these districts and make any eligible refunds.
More information on these funds, and all other capital funds, are available in the Capital Improvement Program as part of the Fiscal Year 2025-26 Adopted Budget (Exhibit 3). 1 This report was posted at carlsbadca.gov/departments/finance/financial -reports, under the Development Impact Fee Annual Report heading.
Dec. 9, 2025
Item #1 Page 2 of 22
Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2 Information will also be included in the Fiscal Year 2024-25 Annual Comprehensive Financial Report, which staff expect to issue before the end of 2025.
In addition to the required annual reporting under Section 66006, Section 66001 requires a local agency to make the following findings every five years regarding the portion of the fund remaining unexpended, whether committed or uncommitted, for the development fee funds:
• Identification of the purpose for which the fee is to be applied • Demonstration of a reasonable relationship between the fee and the purpose for which it is charged
• Identification of all sources and amounts of funding anticipated to complete financing on incomplete improvements
• The approximate dates on which the funding referred to above is expected to be deposited into the appropriate account or fund
When findings are required by this section, the local agency is also required to provide the information to the public, in accordance with Section 66006. The information to support the required findings can be found in the fiscal year 2025-26 Capital Improvement Program provided as Exhibit 3. The resolutions in Exhibits 1 and 2 include the required findings, and if they are adopted, the city and the Carlsbad Municipal Water District will have complied with Section 66001.
The reports in Attachment A to Exhibits 1 and 2, including the information required by the above code sections, were compiled from data derived from audited financial records. These audited figures will also be available in the fiscal year 2024-25 Annual Comprehensive Financial Report, which is likely to be issued before the end of the calendar year.
Fiscal Analysis
This item has no fiscal impact.
Next Steps
Staff will file the approved Annual Financial Information Report on Capital Project Funds and Special Taxes for fiscal year ended June 30, 2025, in accordance with state law.
Environmental Evaluation
The proposed action is not a “project” as defined by CEQA Section 21065 and CEQA Guidelines Section 15378(b)(5) and does not require environment review under CEQA Guidelines Section 15060(c)(3) and 15061(b)(3), because the proposed action to provide the Annual Financial Information Report on Capital Project Funds and Special Taxes is an organizational or administrative government activity that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Any subsequent action or direction stemming from the proposed action may require preparation of an environmental document in accordance with CEQA or CEQA Guidelines.
Exhibits
1. City Council resolution
2. Carlsbad Municipal Water District Board of Directors resolution
3. June 17, 2025, staff report (on file in the Office of the City Clerk) Dec. 9, 2025
Item #1 Page 3 of 22
Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2 RESOLUTION NO. 2025-259 .
A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ACCEPTING THE ANNUAL FINANCIAL INFORMATION
REPORT ON CAPITAL PROJECT FUNDS AND SPECIAL TAXES
W
HEREAS, the City Council of the City of Carlsbad (“City Council”) is required to make certain findings annually with respect to special taxes collected and expended pursuant to California Government Code Section 50075.3; and
WHEREAS, the City Council is required to make certain findings every five years with respect to the unexpended fund balance of certain development fee funds pursuant to California Government Code Section 66001; and
WHEREAS, the City of Carlsbad is required to annually report certain financial information related to capital funds established to track fees charged in connection with the approval of development projects pursuant to California Government Code Section 66006; and WHEREAS, the information to make the required findings can be found in the fiscal year 2025- 26 Capital Improvement Program as adopted by the City Council on June 17, 2025.
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. The proposed action is not a “project” as defined by CEQA Section 21065 and CEQA Guidelines Section 15378(b)(5) and does not require environment review under CEQA Guidelines Section 15060(c)(3) and 15061(b)(3), because the proposed action to provide the Annual Financial Information Report on Capital Project Funds and Special Taxes is an organizational or administrative government activity that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Any subsequent action or direction stemming from the proposed action may require preparation of an environmental document in accordance with CEQA or CEQA Guidelines.
3. That the annual Financial Information Report on Capital Project Funds and Special Taxes (Attachment A) is accepted.
4. That for each developer fee identified in Attachment A these findings are made as required under California Government Code Sections 66001:
Exhibit 1
Dec. 9, 2025
Item #1 Page 4 of 22
Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2 a. That the purposes to which the developer fee is to be put have been identified. b. That a reasonable relationship has been demonstrated between the developer fee and the purpose for which it is charged.
c. That all sources and amounts of funding anticipated to complete financing on incomplete improvements have been identified.
d. That the approximate dates on which the funding referred to above is expected to be deposited into the appropriate fund have been designated.
5. That these findings are based on information contained in the fiscal year 202 5-26 Capital Improvement Program, which is incorporated by reference.
6. That the report in Attachment A was compiled from data derived from audited financial records.
7. That the audited figures will also be available in the fiscal year 202 4-25 Annual Comprehensive Financial Report, which is likely to be issued before the end of the calendar year.
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of Carlsbad and the Board of Directors of the Ca rlsbad Municipal Wa ter District held on the 9th day of December, 2025, by the following vote, to wit:
AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS: None.
ABSTAIN: None.
ABSENT: None.
_______
_______________________________
KEITH BLACKBURN, Mayor
_______
_______________________________
SHERRY FREISINGER, City Clerk
(SEAL)
Dec. 9, 2025
Item #1 Page 5 of 22
Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2
Financial Information Report
Capital Funds Subject to Gov. Code SEC. 66006
For the year ended June 30, 2025
Bridge And Thoroughfare District #2
BEGINNING ENDING BALANCE OF CURRENT FY 2025-26 AND ESTIMATED PERCENTAGE BALANCE FEES INTEREST MISC. CAPITAL BALANCE APPROPRIATIONS FUTURE ESTIMATED CONSTRUCTION EXPENDITURES 7/1/2024 COLLECTED EARNED REVENUES EXPENDITURES 6/30/2025 AT 06/30/2025 APPROPRIATIONS DATE PAID BY FEE Projects:
Poinsettia Lane - Reach E Cassia Road To Skimmer Court -$ -$ -$ Complete 100% BTD #2 District Closeout in Process 1,503,391 In Progress 100% 1,421,479$ -$ 81,912$ -$ -$ 1,503,391$ -$ 1,503,391$ Total: 1,503,391$
Loans: None
Local Facilities Management Plan (LFMP) fee per average daily trip:
$ 505 Zone 5
2,618 Zone 20
2,112 Zone 21
Attachment A
Dec. 9, 2025
Item #1 Page 6 of 22
Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2 Financial Information Report
Capital Funds Subject to Gov. Code SEC. 66006
For the year ended June 30, 2025
Bridge And Thoroughfare District (BTD) #3
BEGINNING ENDING BALANCE OF CURRENT FY 2025-26 AND ESTIMATED PERCENTAGE BALANCE FEES INTEREST MISC. CAPITAL OTHER BALANCE APPROPRIATIONS FUTURE ESTIMATED CONSTRUCTION EXPENDITURES 7/1/2024 COLLECTED EARNED REVENUES EXPENDITURES EXPENDITURES 6/30/2025 AT 06/30/2025 APPROPRIATIONS DATE PAID BY FEE Projects:
BTD #3 District Closeout in Process -$ -$ 563,962$ In Progress 100% 533,234$ -$ 30,727$ -$ -$ -$ 563,962$ -$ 563,962$ Total: 563,962$
Loans: None
Dec. 9, 2025
Item #1 Page 7 of 22
Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2 Financial Information Report
Capital Funds Subject to Gov. Code SEC. 66006 and 50075.3 For the year ended June 30, 2025
Community Facilities District (CFD) #1
BEGINNING ENDING BALANCE OF CURRENT FY 2025-26 AND ESTIMATED PERCENTAGE
BALANCE TAXES FEES INTEREST OTHER CAPITAL OTHER BALANCE APPROPRIATIONS FUTURE ESTIMATED CONSTRUCTION EXPENDITURES 7/1/2024 COLLECTED COLLECTED EARNED REVENUE (1) EXPENDITURES EXPENDITURES 6/30/2025 AT 06/30/2025 APPROPRIATIONS DATE PAID BY FEE/TAX Description
Orion Center 723,996$ 4,088,128$ 49,842,000$ 2025-26 96% City Hall (904) 729,509 115,500,000 2028-29 100% Veteran's Memorial Park 369,019 38,868,102 7,456,700 In Progress 100% Administration Costs 53,561 - 440,000 N/A 0%
CFD Taxes 1,636,371 - - N/A 0%
BTD Fees - - - N/A 0%
Traffic Impact Fees - - N/A 0%
Public Facilities Fees 1,641,995 - - N/A 0%
102,618,822$ 1,636,371$ 1,641,995$ 5,902,207$ 186,472$ 1,092,112$ 53,561$ 110,840,194$ 43,685,739$ 173,238,700$ Total: 216,924,439$
Loans: None
(1) Consists of rental income received on city owned property and district annexation fees.
BTD Fees: Various
Traffic Impact Fee:
$5,350 per unit - residential-single family
4,280 per unit - residential-condominium
3,210 per unit - residential- apartment
212 per trip - commercial/industrial
Public Facilities Fee:
1.82% of building permit valuation
CFD#1 Tax Rates: Various
Dec. 9, 2025
Item #1 Page 8 of 22
Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2 Financial Information Report
Capital Funds Subject to Gov. Code SEC. 66006
For the year ended June 30, 2025
Park In Lieu Fees
BEGINNING ENDING BALANCE OF CURRENT FY 2025-26 AND ESTIMATED PERCENTAGE
BALANCE FEES INTEREST OTHER CAPITAL BALANCE APPROPRIATIONS FUTURE ESTIMATED CONSTRUCTION EXPENDITURES 7/1/2024 COLLECTED EARNED REVENUE EXPENDITURES 6/30/2025 AT 06/30/2025 APPROPRIATIONS DATE PAID BY FEE Projects:
Aviara Land Associates Limited Partnership Reimbursement Agreement -$ 219,100$ -$ Complete 100% Buena Vista Resrvoir Park Reimbursement 336,327 42,173 (42,173) Complete 100% City Facility Safety and Parking Lot Lighting Assessment - 200,000 - 2036-40 0% Hosp Grove Park Improvements - 2,625,000 - 2036-40 0% Leo Carrillo Ranch Park Phase 3B - - 2,374,000 2028-29 100% Monroe Street Pool Replacement 362,678 1,303,782 (182,270) In Progress 32% Northwest Quadrant Older Parks Rehabilitation and Improvement - - 4,600,000 2027-28 0% Robertson Ranch Park Development (Partial Funding) 249,811 973,987 644,000 2026-27 100% Stagecoach Community Park Community Gardens 553,213 24,008 - In Progress 100% 5,591,932$ 1,626,414$ 597,807$ -$ 1,502,029$ 6,314,124$ 5,388,050$ 7,393,557$ Total: 12,781,607$
Loans:
Received a $4,550,000 loan from the Public Facilities Fee Fund in 2007 for the acquisition of the Robertson Ranch Park Site. Land was purchased in 2008.
Repayment is scheduled for 2033-37. Interest is not charged on this loan.
Reimbursement Agreements:
A $332,500 reimbursement agreement from city to Aviara Land Associates Limited Partnership in 1989 for repayment for any park development fees in zone 19 of SW quadrant.
Repayment based on build out in zone, to date $113,400 has been paid.
Fee:
$5,246 to $15,772 per dwelling unit (NE, SW, and SE quadrants) $5,658 to $16,413 per dwelling unit (NW quadrant)
Dec. 9, 2025
Item #1 Page 9 of 22
Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2 Financial Information Report
Capital Funds Subject to Gov. Code SEC. 66006
For the year ended June 30, 2025
Traffic Impact Fees
BEGINNING ENDING BALANCE OF CURRENT FY 2025-26 AND ESTIMATED PERCENTAGE
BALANCE FEES INTEREST OTHER OTHER CAPITAL BALANCE APPROPRIATIONS FUTURE ESTIMATED CONSTRUCTION EXPENDITURES 7/1/2024 COLLECTED EARNED REVENUE EXPENDITURES EXPENDITURES 6/30/2025 AT 06/30/2025 APPROPRIATIONS DATE PAID BY FEE Projects:
Avenida Encinas Widening - South Of Palomar Airport Road 570,884$ 2,641,049$ 2,100,000$ 2025-26 62% Carlsbad Boulevard Realignment - Manzano Drive to Island Way - - 3,681,000 2036-40 0% Carlsbad Village Drive Widening - Pontiac Drive to Victoria Avenue - - - 2028-29 0% El Camino Real And Cannon Road Intersection Improvements 4,107 212,269 (207,437) Complete 85% El Camino Real Right Turn Lane To East Bound Alga Road - - 438,000 2036-40 0% El Camino Real Widening - Arenal Road to La Costa Avenue 98,004 5,700,777 3,000,000 2025-26 100% Melrose Drive Right Turn Lane To West Bound Palomar Airport Road - 1,366 - Complete 100% Sidewalk/Street Construction - Valley St. And Magnolia Ave. 37,508 226,192 - 2026-27 73% Sidewalk/Street Construction - Various Locations 50,242 1,520,138 1,040,000 Ongoing 99% Terramar Area Coastal Improvements 85,702 4,499,344 1,700,000 2025-26 97% Traffic Impact Fee Update - 151,867 48,000 2036-40 100% Traffic Monitoring Program 29,414 65,433 - Ongoing 98% 15,311,632$ 916,503$ 956,526$ -$ -$ 875,860$ 16,308,800$ 15,018,435$ 11,799,563$ Total: 26,817,998$
Loans:
Received a $2,857,238 loan from the CFD #1 Fund for the construction of several circulation element roadways. Repayment is scheduled as fees are collected. Interest is not charged.
Current balance is $516,587
Fees:
$6,290 per unit - residential-single family
5,032 per unit - residential-condominium
3,774 per unit - residential-apartment
251 per trip - commercial/industrial
Dec. 9, 2025
Item #1 Page 10 of 22
Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2 Financial Information Report
Capital Funds Subject to Gov. Code SEC. 66006
For the year ended June 30, 2025
Industrial Corridor Fees (Zones 5, 13 and 16-18)
BEGINNING ENDING BALANCE OF CURRENT FY 2025-26 AND ESTIMATED PERCENTAGE
BALANCE FEES INTEREST CAPITAL BALANCE APPROPRIATIONS FUTURE ESTIMATED CONSTRUCTION EXPENDITURES 7/1/2024 COLLECTED EARNED EXPENDITURES 6/30/2025 AT 06/30/2025 APPROPRIATIONS DATE PAID BY FEE Projects:
Business Park Recreational Facility -$ 18,000,000$ 2036-40 0% 5,025,288$ 32,322$ 290,273$ -$ 5,347,883$ -$ 18,000,000$ Total: 18,000,000$
Loans: None
Fee: $0.40 per square foot on new industrial & commercial construction Dec. 9, 2025
Item #1 Page 11 of 22
Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2 Financial Information Report
Capital Funds Subject to Gov. Code SEC. 66006
For the year ended June 30, 2025
Planned Local Drainage Fees
BEGINNING ENDING BALANCE OF CURRENT FY 2025-26 ESTIMATED PERCENTAGE
BALANCE FEES INTEREST OTHER CAPITAL BALANCE APPROPRIATIONS FUTURE ESTIMATED CONSTRUCTION EXPENDITURES 7/1/2024 COLLECTED EARNED REVENUE EXPENDITURES 6/30/2025 AT 06/30/2025 APPROPRIATIONS DATE PAID BY FEE Projects:
Pld Area A - Drainage Master Plan Facility AAA (Jefferson Street) -$ -$ 290,000 2036-40 100% Pld Area A - Drainage Master Plan Facility AAAA (Madison Street) - - 417,000 2036-40 100% Pld Area A - Drainage Master Plan Facility AC (Highland Drive) - - 922,000 2036-40 100% Pld Area A - Drainage Master Plan Facility AFA (Hidden Valley Drainage Restoration) - - 92,000 2036-40 100% Pld Area A - Drainage Master Plan Facility AFB (Calavera Hills Drainage Restoration) - - 164,000 2036-40 100% Pld Area B - Drainage Master Plan Facility BL-L (College Boulevard Bridge Reimbursement) - - 1,817,000 2036-40 100% Pld Area B - Drainage Master Plan Facility BFB-U (El Camino Real) - 15,166 - 2036-40 100% Pld Area B - Drainage Master Plan Facility BFB-L + BF-1 (Tamarack And El Camino Real) - - 905,000 2036-40 100% Pld Area B - Drainage Master Plan Facility BB 1 and 2 (Washington Street) - - 1,087,000 2036-40 100% Pld Area B - Drainage Master Plan Facility BCB (Magnolia Avenue) - - 469,000 2036-40 100% Pld Area B - Drainage Master Plan Facility BL-U (College Blvd.) - - 385,000 2036-40 100% Pld Area B - Drainage Master Plan Facility BM (Cantarini/College Blvd. Box Culvert) - - 205,000 2036-40 100% Pld Area B - Drainage Master Plan Facility BQ (Sunny Creek) - - 132,000 2036-40 100% Pld Area B - Drainage Master Plan Facility BR (Canatarini/College Blvd. Pipe Drainage) - - 181,000 2036-40 100% Pld Area C - Drainage Master Plan Facility C2 (Paseo Del Norte) - - 728,000 2036-40 100% Pld Area C - Drainage Master Plan Facility CA (Avenida Encinas) - - 530,000 2036-40 100% Pld Area D - Drainage Master Plan Facility DBA (Poinsettia Village) - - 168,000 2036-40 100% Pld Area D - Drainage Master Plan Facility DBB (Avenida Encinas) - - 430,000 2036-40 100% Pld Area D - Drainage Master Plan Facility DFA (Batiquitos Lagoon Stormwater Treatment) - - 257,000 2036-40 100% Pld Area D - Drainage Master Plan Facility DH (Altiva Place Canyon Restoration) - - 233,000 2036-40 100% Drainage Master Plan Update 26,298 31,323 - In Progress 100% Drainage Master Plan Update 12,310 1,329 - In Progress 100% Drainage Master Plan Update 17,574 99,483 - In Progress 100% Drainage Master Plan Update 27,608 12,539 - In Progress 100% 5,031,778$ 172,505$ 290,057$ -$ 83,790$ 5,410,551$ 159,840$ 9,412,000$ Total: 9,571,840$
Loans: None
Fee Per Gross Acre: Low Runoff Medium Runoff High Runoff Area A - Buena Vista Lagoon 8,902$ 17,702$ 38,574$ Area B - Agua Hedionda Lagoon 3,328 6,414 14,417
Area C - Encinas Creek 3,229 4,568 13,997
Area D - Batiquitos Lagoon 3,062 5,009 13,272
Dec. 9, 2025
Item #1 Page 12 of 22
Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2 Financial Information Report
Capital Funds Subject to Gov. Code SEC. 66006
For the year ended June 30, 2025
Public Facilities Fees
BEGINNING ENDING BALANCE OF CURRENT FY 2025-26 AND ESTIMATED PERCENTAGE
BALANCE FEES INTEREST OTHER CAPITAL BALANCE APPROPRIATIONS FUTURE ESTIMATED CONSTRUCTION EXPENDITURES 7/1/2024 COLLECTED EARNED REVENUE (1) EXPENDITURES 6/30/2025 AT 06/30/2025 APPROPRIATIONS DATE PAID BY FEE Projects:
Kelly Drive and Park Drive Complete Street Improvements -$ 931,307$ -$ In Progress 0% Leo Carrillo Park - Phase 3 Art 12,422 - - Complete 100% Leo Carrillo Ranch Park Phase 3 - 25,659 (25,659) Complete 54% Northwest Quadrant Older Parks Rehabilitation and Improvement - - 4,250,000 2027-28 0% Pickleball Courts 239,318 198,627 2,800,000 2025-26 100% Poinsettia Community Park - Phase 4 - Dog Park 53,813 37,814 - Complete 0% Robertson Ranch Park Development - - 32,500,000 2025-26 0% South Carlsbad Coastline - - 3,000,000 2036-40 0% State Street Parking Lot Electric Vehicle Charging Stations 84,535 269,212 - In Progress 100% Temporary Fire Station No. 7 23,940 83,634 - Complete 61% Terramar Area Coastal Improvements 4,079 2,404,995 5,500,000 2025-26 2% Valley and Magnolia Complete Streets 624 250,376 800,000 2026-27 0% Village H South Off Leash Dog Area And Trail Segment 5B - 328,551 1,400,000 2031-32 100% 37,204,528$ 3,200,732$ 1,912,499$ 116,434$ 418,732$ 42,015,462$ 4,530,175$ 50,224,341$ Total: 54,754,516$
(1) Consists of rental income received on city owned property. (2) Consists of utilities paid on city owned property.
Loans: None
Fee: 3.50% of building permit value
Dec. 9, 2025
Item #1 Page 13 of 22
Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2 Financial Information Report
Capital Funds Subject to Gov. Code SEC. 66006
For the year ended June 30, 2025
Parking In Lieu Fee-Village Area
BEGINNING ENDING BALANCE OF CURRENT FY 2025-26 AND ESTIMATED PERCENTAGE
BALANCE FEES INTEREST BALANCE APPROPRIATIONS FUTURE ESTIMATED CONSTRUCTION EXPENDITURES 7/1/2024 COLLECTED EARNED EXPENDITURES 6/30/2025 AT 06/30/2025 APPROPRIATIONS DATE PAID BY FEE Projects:
Downtown Parking Lot Lease Payments (1) 57,120$ -$ 1,113,493$ N/A 100% 1,107,248$ -$ 63,364$ 57,120$ 1,113,493$ -$ 1,113,493$ Total: 1,113,493$
(1) The city currently leases parking lot areas from North County Transit District on an ongoing basis for village area parking.
Loans: None
Fee: $11,240 per parking space
Dec. 9, 2025
Item #1 Page 14 of 22
Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2 Financial Information Report
Capital Funds Subject to Gov. Code SEC. 66006
For the year ended June 30, 2025
Habitat Mitigation Fee
BEGINNING ENDING BALANCE OF FY 2025-26 AND ESTIMATED PERCENTAGE
BALANCE FEES INTEREST BALANCE LOAN FUTURE CONSTRUCTION EXPENDITURES 7/1/2024 COLLECTED EARNED EXPENDITURES 6/30/2025 AT 06/30/2025 APPROPRIATIONS DATE PAID BY FEE Projects:
Payment Made on General Fund Loan 36,659$ 1,223,480$ -$ N/A 100% (1,187,166)$ -$ 346$ 36,659$ (1,223,480)$ 1,223,480$ -$ Total: 1,223,480$
Loans:
Received cash advances of $759,028 and $1,104,114 from the General Fund for the purchase of habitat land in 2011 and 2020, respectively.
Repayment is scheduled as sufficient cash becomes available. Interest is charged annually on this loan at a rate equal to the average treasurer’s portfolio rate during the fiscal year.
Current loan balance including accrued interest is $1,223,480.
Fee:
$40,129 per impacted acre - coastal sage scrub
20,066 per impacted acre - non-native grassland
4,013 per impacted acre - agricultural land, disturbed land, eucalyptus wood Dec. 9, 2025
Item #1 Page 15 of 22
Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2 Financial Information Report
Capital Funds Subject to Gov. Code SEC. 66006
For the year ended June 30, 2025
Agricultural Mitigation Fee
BEGINNING ENDING BALANCE OF CURRENT FY 2025-26 AND ESTIMATED PERCENTAGE
BALANCE FEES INTEREST BALANCE APPROPRIATIONS FUTURE ESTIMATED CONSTRUCTION EXPENDITURES 7/1/2024 COLLECTED EARNED EXPENDITURES 6/30/2025 AT 06/30/2025 APPROPRIATIONS DATE PAID BY FEE Projects:
Community Grants and Contributions 99,485$ 375,669$ -$ N/A 100% Future Community Grants and Contributions 585,340 TBD 100% 1,003,349$ -$ 57,146$ 99,485$ 961,009$ 375,669$ 585,340$ Total: 961,009$
Loans: None
Fee: $10,000 per acre
Dec. 9, 2025
Item #1 Page 16 of 22
Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2 Financial Information Report
Capital Funds Subject to Gov. Code SEC. 66006
For the year ended June 30, 2025
Sewer Benefit Area Funds
BEGINNING ENDING BALANCE OF CURRENT FY 2025-26 AND ESTIMATED PERCENTAGE
BALANCE FEES OTHER CAPITAL BALANCE APPROPRIATIONS FUTURE ESTIMATED CONSTRUCTION EXPENDITURES 7/1/2024 COLLECTED INTEREST REVENUE EXPENDITURES EXPENDITURES 6/30/2025 AT 06/30/2025 APPROPRIATIONS DATE PAID BY FEE Projects:
Future Projects (1) -$ 8,948,684$ TBD TBD
8,115,314$ 360,999$ 472,371$ -$ -$ 8,948,684$ -$ 8,948,684$ Total: 8,948,684$
(1) The city is able to use the funds for similar capital projects in the same area as the SBA where the funds were collected. Eligible projects have been identified, and the transfer of the corresponding eligible funds will occur upon project completion, subject to budget appropriation.
Loans: None
Fees:
$3,314 Area C
3,321 Area D
4,898 Area E
4,924 Area F
1,445 Area H
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Item #1 Page 17 of 22
Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2 Financial Information Report
Capital Funds Subject to Gov. Code SEC. 66006
For the year ended June 30, 2025
Wastewater Connection Fee Fund
BEGINNING ENDING BALANCE OF CURRENT FY 2025-26 AND ESTIMATED PERCENTAGE
BALANCE FEES OTHER OTHER CAPITAL BALANCE APPROPRIATIONS FUTURE ESTIMATED CONSTRUCTION EXPENDITURES 7/1/2024 COLLECTED INTEREST REVENUE (1) EXPENDITURES EXPENDITURES 6/30/2025 AT 06/30/2025 APPROPRIATIONS DATE PAID BY FEE Projects:
Avenida Encinas and Cannon Road Sewer Replacement -$ -$ 1,650,000$ 2028-29 0% Buena Interceptor Sewer/Manhole Rehabilitation 4,842 498,024 - 2027-28 7% Cannon Lift Station Redundant Force Main - - 6,450,000 2030-31 0% El Fuerte Lift Station Pump Addition - 424,673 920,000 2036-40 100% El Fuerte Lift Station Redundant Force Main - - 5,000,000 2028-29 0% Faraday/El Camino Real Sewer Replacement - 3,132,681 254,400 2026-27 100% Harding Street Sewer Improvements - 1,200,000 - 2036-40 0% Home Plant Lift Station Improvements - - 5,800,000 2036-40 0% Jefferson Street Sewer Replacement - - 300,000 2036-40 0% Las Palmas Trunk Sewer - 301,000 3,300,000 2027-28 0% Poinsettia Lift Station Redundant Force Main - - 5,000,000 2028-29 0% Sewer Capacity Monitoring Program - 355,088 264,000 Ongoing 100% Sewer Modeling 7,840 74,270 - Ongoing 100%
Vista Carlsbad Interceptor - Buena Vista Lift Station Improvements 1,793 152,472 253,400 2036-40 100% Vista/Carlsbad Interceptor - Agua Hedionda Lift Station/Forcemain (Vc12-Vc13) (1) 20,035 430,482 - Completed 100% Vista/Carlsbad Trunk Line Interceptor (Reach 11B) (1) - 15,146 (15,146) Completed 100% Vista/Carlsbad Trunk Line Interceptor (Reach 13-15) (1) - 102,870 - Completed 100% Vista/Carlsbad Trunk Line Interceptor (Reach 3) (1) - 517,000 (308,800) 2028-29 0% 3,472,984$ 375,170$ 371,280$ -$ -$ 34,510$ 4,184,925$ 7,203,706$ 28,867,854$ Total: 36,071,560$
Loans: Received a $3,500,000 loan from the Wastewater Replacement Fund. Repayment is scheduled for 2027. Interest is not charged on this loan. This loan is not included in the ending balance above. (1) These are joint projects with the City of Vista, the percentage shown as paid by fee is Carlsbad's construction percentage of the total future appropriations or 30.9% plus a 5% owner advisor fee.
Fee: $1,289 - General Capacity Fee for all Areas
Dec. 9, 2025
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Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2 RESOLUTION NO. 1788 .
A
RESOLUTION OF THE BOARD OF DIRECTORS OF CARLSBAD MUNICIPAL
WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA, ACCEPTING
THE ANNUAL FINANCIAL INFORMATION REPORT ON CAPITAL PROJECT FUNDS
W
HEREAS, the Carlsbad Municipal Water District Board of Directors is required to make certain findings every five years with respect to the unexpended fund balance of certain development fee funds pursuant to California Government Code Section 66001; and WHEREAS, the Carlsbad Municipal Water District is required to annually report certain financial information related to capital funds established to track fees charged in connection with the approval of development projects pursuant to California Government Code Section 66006; and WHEREAS, the information to make the required findings can be found in the fiscal year 2025- 26 Capital Improvement Program as adopted by the Board of Directors on June 17, 2025.
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. The proposed action is not a “project” as defined by CEQA Section 21065 and CEQA Guidelines Section 15378(b)(5) and does not require environment review under CEQA Guidelines Section 15060(c)(3) and 15061(b)(3), because the proposed action to provide the Annual Financial Information Report on Capital Project Funds and Special Taxes is an organizational or administrative government activity that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Any subsequent action or direction stemming from the proposed action may require preparation of an environmental document in accordance with CEQA or CEQA Guidelines.
3. That the annual Financial Information Report on Capital Project Funds (Attachment A) is accepted.
4. That for each developer fee identified in Attachment A these findings are made as required under California Government Code Sections 66001:
a. That the purposes to which the developer fee is to be put have been identified. b. That a reasonable relationship has been demonstrated between the developer fee Exhibit 2
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Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2 and the purpose for which it is charged.
c. That all sources and amounts of funding anticipated to complete financing on incomplete improvements have been identified.
d. That the approximate dates on which the funding referred to above is expected to be deposited into the appropriate fund have been designated.
5. That these findings are based on information contained in the fiscal year 202 5-26 Capital Improvement Program, which is incorporated by reference.
6. That the report in Attachment A was compiled from data derived from audited financial records.
7. That the audited figures will also be available in the fiscal year 202 4-25 Annual Comprehensive Financial Report, which is likely to be issued before the end of the calendar year.
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Board of Directors of the Carlsbad Municipal Water District and the City Council of the City of Carlsbad held on the 9th day of December, 2025, by the following vote, to wit:
AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS: None.
ABSTAIN: None.
ABSENT: None.
_______
_______________________________
KEITH BLACKBURN, President
_______
_______________________________
SHERRY FREISINGER, Secretary
(SEAL)
Dec. 9, 2025
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Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2
Financial Information Report
Capital Funds Subject to Gov. Code SEC. 66006
For the year ended June 30, 2025
Major Facilities Fee Funds (Potable/Recycled Water)
BEGINNING ENDING BALANCE OF CURRENT FY 2025-26 AND ESTIMATED PERCENTAGE
BALANCE FEES MISC CAPITAL BALANCE APPROPRIATIONS FUTURE ESTIMATED CONSTRUCTION EXPENDITURES 7/1/2024 COLLECTED INTEREST REVENUE EXPENDITURES 6/30/2025 AT 06/30/2025 APPROPRIATIONS DATE PAID BY FEE Projects:
C Tank Access Road and Electrical Improvements -$ 50,000$ 300,000$ 2028-29 0% Carlsbad Water Recycling Facility Improvements - 350,000 - 2025-26 0% College Boulevard - Cannon To Badger (375 Zone) - 278,200 1,700,000 2036-40 100% College Boulevard - Cannon To Badger (490 Zone) - 312,600 1,700,000 2036-40 0% Crestview Drive Transmission Main - 171,000 714,000 2027-28 0% Desalinated Water Flow Control Facility No. 5 3,344 424,158 (424,157) Cancelled 100% Hydroelectric Generation at Water Facilities - 500,000 - 2028-29 100% Limited Access Pipeline Relocation Program 12,569 1,109,431 810,000 Ongoing 1% Maerkle Reservoir Transmission Main - - 4,079,754 2029-30 0% Palomar Airport Waterline Realignment - - - Complete 0% Poinsettia Lane - Cassia To Skimmer - 207,394 - Complete 100% Pressure Reducing Station Program 1,163 598,837 430,000 Ongoing 100% Rancho Carlsbad Groundwater Supply - - 1,000,000 2036-40 0% Recycled Water Phase 3 - Pipelines - 1,351,835 - Ongoing 100% Recycled Water Phase 3 - Reservoir 3,107,066 871,275 - In Progress 100% San Luis Rey Mission Basin Groundwater Supply - - 1,000,000 2028-29 0% SCADA Improvements - 80,000 - Ongoing 0%
Water Modeling - 174,908 - Ongoing 100%
Water System Rehabilitation and Replacement - - 3,000,000 Ongoing 0% 23,593,271$ 454,560$ 2,179,895$ 34,085$ 3,124,142$ 23,137,669$ 6,479,638$ 14,309,597$ Total 20,789,235$
Loans: None
Fee: $5,842.00 (5/8" Meter Size). Fees vary depending on meter size.
Attachment A
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Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2 Exhibit 3
June 17, 2025, staff report
(on file in the Office of the City Clerk)
Dec. 9, 2025
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Docusign Envelope ID: A1F754F1-3450-4518-A479-82AC102368F2