2026-06-16; City Council; 06; Adoption of the Fiscal Year 2026-27 Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program, the Fiscal Year 2026-27 Appropr — Carlsbad City Council, June 16, 2026 (part 1 of 4)

CA Review CKM
Meeting Date: June 16, 2026
To: Mayor/President/Chairperson and City Council/Board/Commissioners From: Geoff Patnoe, City Manager/Executive Manager/Executive Director Staff Contact: Laura Rocha, Deputy City Manager, Administrative Services [email protected], 442-339-2415
Zach Korach, Finance Director
[email protected], 442-339-2127
Subject: Adoption of the Fiscal Year 2026-27 Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program, the Fiscal Year 2026-27 Appropriation Limit and Revision of Fees and Charges for Services
Districts: All
Rec
ommended Action
The following actions are recommended to be taken by the City Council of the City of Carlsbad, the Boards of Directors of the Carlsbad Municipal Water District, City of Carlsbad Public Financing Authority, City of Carlsbad Community Development Commission, and the City Council of the City of Carlsbad as Successor Agency to the Carlsbad Redevelopment Agency for final adoption of their respective fiscal year 2026-27 Operating Budgets and, where applicable, FY 2026-27 Strategic Digital Transformation Investment Programs and Capital Improvement Programs:
• Hold a public hearing on:
o The FY 2026-27 Operating Budgets, FY 2026-27 to FY 2030-31 Strategic Digital Transformation Investment Programs and FY 2026-27 to FY 2030-31 Capital Improvement Programs for the City of Carlsbad and the Carlsbad Municipal Water District
o The FY 2026-27 Operating Budget and FY 2026-27 to FY 2030-31 Capital Improvement Program for the Carlsbad Public Financing Authority o The FY 2026-27 Operating Budget for the Carlsbad Housing Authority o The FY 2026-27 Operating Budget for the Successor Agency to the Carlsbad Redevelopment Agency and the enforceable debt obligations of the City of Carlsbad’s Redevelopment Obligation Retirement Fund
o Establishing new and modifying existing fees in the Master Fee Schedule for the City of Carlsbad, the Carlsbad Municipal Water District, and the Carlsbad Housing Authority
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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 • Adopt resolutions of:
o The City Council of the City of Carlsbad adopting the final Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program for Fiscal Year 2026-27 for the City of Carlsbad and establishing controls on changes in appropriations for budget funds
o The Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad adopting the water district’s final Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program for Fiscal Year 2026-27 and establishing controls on changes in appropriations for budget funds
o The Community Development Commission of the City of Carlsbad adopting the final Operating Budget of the Carlsbad Housing Authority for Fiscal Year 2026-27 and establishing controls on changes in appropriations for budget funds o The Board of Directors of the Carlsbad Public Financing Authority adopting the final Operating Budget and Capital Improvement Program of The Crossings at Carlsbad Municipal Golf Course for Fiscal Year 2026-27 and establishing controls on changes in appropriations for budget funds
o The City Council of the City of Carlsbad, 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 2026-27 and establishing controls on changes in appropriations for budget funds
o The City Council of the City of Carlsbad establishing the Fiscal Year 2026-27 appropriation limit as required by Article XIIIB of the California Constitution and state law
o The City Council of the City of Carlsbad adopting changes to the Master Fee Schedule o The Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad adopting changes to the Master Fee Schedule
o The Community Development Commission of the City of Carlsbad adopting changes to the Master Fee Schedule
o The City Council of the City of Carlsbad reducing the city’s Asset Replacement Reserve by $400,000 and increasing the unassigned fund balance in the General Fund by the same amount as of July 1, 2026
o The City Council of the City of Carlsbad approving the City of Carlsbad’s share of the Fiscal Year 2026-27 Operating and Capital Budgets of the Encina Wastewater Authority
o The City Council of the City of Carlsbad determining that the Fiscal Year 2026-27 Capital Improvement Program is consistent with the General Plan and applicable Climate Action Plan measures and actions
o The City Council of the City of Carlsbad 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 2026-27 o The City Council of the City of Carlsbad adopting amendments to City Council Policy No. 95 – Cost Recovery Policy for Fees and Charges for Services June 16, 2026
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o The Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad adopting amended City Council Policy No. 95 as the water district’s cost recovery policy
o The Community Development Commission of the City of Carlsbad adopting amended City Council Policy No. 95 as the Commission’s and the Carlsbad Housing Authority’s cost recovery policy
o The City Council of the City of Carlsbad approving the appropriation and transfer of $8,000,000 from General Fund reserves in Fiscal Year 2025-26 to the Infrastructure Replacement Fund to fund future projects
o The City Council of the City of Carlsbad authorizing the appropriation of $294,926 from the General Fund to the Fire Department’s Fiscal Year 2026-27 Operating Budget and the conversion of one part-time Fire Prevention Specialist position to a full-time Assistant Fire Marshal position to support Phase 2 of the Wildfire Mitigation Plan
Executive Summary
Staff are recommending adoption of the City of Carlsbad’s Fiscal Year 2026-27 Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program, as well as the Fiscal Year 2026-27 Appropriation Limit and Revision of Fees and Charges for Service.

The proposed budget prioritizes the goals in the City Council’s 5-Year Strategic Plan, which was based on input from thousands of community members and approved in 2022. By committing to this plan, rather than goals that are subject to change from year to year, the City Council has enabled staff to work more efficiently while improving the alignment between the annual city budget and the Carlsbad community’s vision for the future.

Each year, during the preparation of the annual budget, staff develop work plans that build upon progress in the strategic plan’s key areas of focus:

Maintain Carlsbad’s unique community character and connectedness

Prioritize the safety and well-being of the community

Protect the environment and natural resources

Foster a healthy local economy

Be a model for effective and efficient local government The proposed budget maintains the city’s critical core services with prudent investment in public safety, infrastructure replacement and stormwater protection.

Healthy revenues, increased efficiencies, cost reductions and new budget policies and practices over the past several years have worked together to close the future funding gap. However, there is still much uncertainty surrounding geopolitical tensions and their macro- and micro- June 16, 2026
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economic impacts on the nation. Even in recent months, there has been extreme market volatility and further reduction in consumer demand, which has impacted the outlook for the city’s economically sensitive revenue sources.

Given those conditions, the proposed budget for fiscal year 2026-27 continues to focus on setting aside money for future needs, ensuring funding is available for long-term and large capital purchases and maintaining a very high level of service for the community.

The city’s General Fund is its primary operating fund and covers the costs of essential services like police, fire, parks and recreation, general government operations and other basic city functions. In the prior year, the General Fund budget increased 1.8%, far lower than the 3.8% regional inflation level at the time of adoption. In fiscal year 2026-27, the General Fund budget is proposed to increase 2.8%, which for the second consecutive year is below the current level of inflation at 3.7% across the state. In addition, the General Fund reserve remains strong — this proposed budget maintains the 61% level, well above the 40% minimum set by City Council policy. Staff propose using excess reserves to fund long-term capital infrastructure needs, thereby bringing the projected General Fund reserve level to 58% by the end of fiscal year 2026-27, as discussed later in this staff report.

On the economic front, Carlsbad’s transition from a growing city to one focused on maintaining an excellent quality of life continues to bring new fiscal challenges. The proposed budget recommends modest increases to continue supporting the goals of the Strategic Plan. This follows more than $5 million in ongoing budget reduction savings recognized across fiscal years 2022-23 to 2024-25. These increases will:
• Fund the reopening of Monroe Street Pool and additional aquatic staff in support of the city’s goal to enhance community character and programs that promote wellness • Retain the personnel and operating costs approved previously by the City Council for a Community-Oriented Policing and Problem Solving team to foster strong relationships between community members and members of the Police Department • Continue to expand service capacity in the Fire Department as part of a multi-year effort in support of the city’s quality of life and safety
• Fund the development and update of the 2028-2032 Strategic Plan Budget summary
1 Projected General Fund reserve as of June 30, 2026, before any proposed use of excess reserves $152.2 million
Projected General Fund reserve % as of June 30, 2026 (goal is 40%), before any proposed use of excess reserves 61%
Less: Use of FY 2025-26 reserves for Infrastructure Replacement Fund -$8,000,000 Plus: Net reduction in Asset Replacement Reserve $400,000 Projected General Fund reserve as of June 30, 2026, including proposed use of excess reserves $144.6 million
Projected General Fund reserve % as of June 30, 2026 (goal is 40%), including proposed use of excess reserves 58%

1 This budget summary does not include the additional appropriation for Phase 2 of the Wildfire Mitigation Plan, which is discussed later in the staff report and in Exhibit 18.

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Projected General Fund revenues $249.6 million
Proposed General Fund Operating Budget $249.1 million
Projected General Fund reserve as of June 30, 2027 $145.1 million Projected General Fund reserve % as of June 30, 2027 58% Key budget highlights
Current rate of inflation 3.7%
% change from FY 2025-26 adopted General Fund Operating Budget 2.8% Proposed changes in total full-time staffing 1.00*
Estimated pension funding ratio (goal is 80%) 79%
*This proposed change in total full-time equivalent staffing represents the difference between the final 2025-26 budget and the preliminary 2026-27 budget. The City Council approved a net increase of six full-time positions mid-year after the adoption of the 2025-26 budget, as discussed later in this report.

Part of the budget is the Strategic Digital Transformation Investment Program, a comprehensive approach to planning for and funding digital transformation efforts throughout the city. The purpose of this program is to provide an annual investment strategy — not a commitment for spending — by outlining a five-year expenditure plan for future digital transformation and technology projects and the corresponding revenues necessary to pay for them.

Another significant part is the Capital Improvement Program, which reflects the city’s ongoing commitment to maintaining facilities to the highest standards of quality for our community today and in the future. The Capital Improvement Program is a planning document, not a commitment for future spending. The five-year program outlines the expenditure plan for future capital projects and the corresponding revenues to pay for those expenditures.

Explanation & Analysis
Policy goals
The annual Operating Budget is the most significant expression of how City Council policies are translated into daily operations. The City Council sets the overall policy direction for Carlsbad and helps staff prioritize programs, projects and services to support that direction.

On Oct. 11, 2022, the City Council adopted the city’s 5-Year Strategic Plan, with policy goals to reflect the most important priorities of the community. These goals are one way the city delivers on the Carlsbad Community Vision, a set of nine core values community members said were important to Carlsbad’s future. The annual city budget contains the work plans and resource allocations to achieve the goals in the strategic plan. Based on community input, the City Council identified five areas of focus for its 5-year strategic plan:

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• Community Character: Maintain Carlsbad’s
unique community character
• Economic Vitality: Foster a healthy
economy
• Quality of Life and Safety: Prioritize the
safety and well-being of the community
• Sustainability & Natural Environment:

Protect the environment and natural
resources
• Organizational Excellence & Fiscal
Health: Be a model for effective and
efficient local government

Maintaining fiscal health
The city increased its focus on community priorities by identifying efficiencies and reducing spending in areas with the least impact on the community over the past three years. A series of budget process reforms and policies begun in 2018 have increased transparency in how the city manages its budget and tightened controls over spending. These policies are:
• Eliminating an automatic annual increase to department budgets based on inflation.

Instead, requested budget increases are considered based on actual increased costs and approved only after departments have exhausted alternatives for covering increased costs of doing business
• Stopping the practice of allowing departments to automatically roll over 10% of unspent money to the following fiscal year. Instead, departments may request to roll over funds for a specific purpose, based on a demonstrated need. Requests to carry funds over into the next fiscal year must be approved by the City Manager or City Council, depending on the amount
• Changing practices around hiring part-time, temporary staff to ensure full transparency of the actual number of full-time equivalent positions working for the city at any given time
• Updating the General Fund Reserve Policy to ensure the city has enough money to continue services in an emergency
• Establishing an economic uncertainty reserve
• Creating a new cost recovery policy
• Developing a policy for reinvesting surplus funds
• Creating a process to ensure ongoing funding for digital infrastructure, which has become as important as physical infrastructure
• Engaging a grant writer to ensure the city is taking advantage of state and federal funding opportunities
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• Creating a new internal auditor program to safeguard city resources and improve city operations
Supplemental requests
Departments submitted supplemental budget requests to the budget team and the City Manager for consideration. The budget requests were mainly driven by:
• Inflation
• Expanded programming
• Costs associated with grant and revenue opportunities • Costs associated with City Council priorities
• Replacing assets
Within the General Fund, a total of $3.2 million ($2.4 million ongoing) is being proposed for fiscal year 2026-27.

General Fund Reserve
The City Council has a policy of maintaining a reserve with a target balance equivalent to 40% of the General Fund’s Operating Budget. These are the cash balances made available from the prudent fiscal policy of developing an annual balanced budget and, at times, having unexpected revenues or expenditures below what was budgeted. One of the purposes of this reserve is to protect against cyclical swings in the economy. The city is projected to end the upcoming fiscal year with a reserve balance of 58% of the General Fund Operating Budget. This includes the recommended fiscal year 2025-26 one-time use of $8,000,000 to support future capital projects in the Infrastructure Replacement Fund.

The recommended preliminary General Fund Operating Budget totals $249.1 million, with estimated revenues of $249.6 million.

General Fund revenues provide a representative picture of the local economy. These revenues are of particular interest because they contain most of the discretionary funds that pay for basic city services, such as the Police and Fire departments, library and cultural arts services, street and park maintenance and recreation. A summarized outlook of the major General Fund revenues can be found in the Operating Budget overview (Exhibit 6).

The Operating Budget overview also contains:
• A detailed look at expenditures by type
• General Fund transfers to other funds
• Projected ending fund balances
The table below shows the adopted fiscal year 2025-26 General Fund budget as well as the proposed fiscal year 2026-27 budget.

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General Fund summary for fiscal year 2026-27
(in millions)
General Fund
FY 2025-26
Adopted
Budget
FY 2026-27
Proposed
Budget
Total revenues $243.3 $249.6
Total expenditures -$242.4 -$249.1
Planned use of Asset Replacement Reserve — $0.2
Revenues over total expenditures $0.9 $0.7

General Fund 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. On an annual basis, this translates to a significant financial need and commitment.

In an effort to not only prioritize these purchases, but to strategically plan for the ongoing financial impacts, staff established a General Fund Asset Replacement Reserve in the previous fiscal year. Separate and apart from the General Fund Reserve Guidelines (City Council Policy No. 74), this Asset Replacement Reserve serves as a mechanism for funding large equipment needs without impacting the General Fund Reserve or annual budget surplus year after year. In fiscal year 2026-27, the Asset Replacement Reserve schedule anticipates the use of $235,000 to fund the Fire Department’s replacement of portable radios.

As of fiscal year 2026-27, and for the next 10 fiscal years, a total of $7.2 million is projected to be needed to fund asset replacement costs in the General Fund. Staff will continue to update the amount needed in the Reserve based on updated 10-year projections from city staff.

Personnel
2 The proposed budget for the next fiscal year includes 812 permanent full-time employees, an increase of 1.00 compared to the final budget amount for fiscal year 2025-26. Additionally, there is a proposed increase in part-time employees equivalent to 4.59 full-time employees, for a net personnel increase of 5.59 full-time-equivalent employees.

The following positions are proposed to be added in fiscal year 2026-27:
• One Maintenance Worker to support operations for the expanded Monroe Street Pool upon reopening
• A combined 4.59 hourly full-time equivalent positions, including:
o 0.97 to support the Communication & Engagement Department o 3.40 to support operations for the expanded Monroe Street Pool upon reopening, including lifeguards and aquatics instructors

2 This section does not include the conversion of a part-time Fire Prevention Specialist to a full-time Assistant Fire Marshal position for Phase 2 of the Wildfire Mitigation Plan, which is discussed later in the staff report and in Exhibit 18.

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o 0.40 to support the Fleet & Facilities Department’s custodial services at the Safety Training Center
o A net reduction of 0.18 reflecting an adjustment in hours in the Police Department’s management of its GUIDE program, a prevention and intervention counseling program for elementary and middle schools students in the Carlsbad Unified School District
The budget also includes ongoing funding for six Police Department positions approved by the City Council in March 2026.

Enterprise funds
The budget projects enterprise fund revenues, including those from water, wastewater services, solid waste management and The Crossings at Carlsbad Municipal Golf Course, the city’s golf course, at $127.2 million, a $3.6 million or 2.9% increase over projected fiscal year 2025-26 revenues. (Enterprise funds are those that are supported by the fees collected for the service rather than the General Fund and must be accounted for separately under state law.) The budgeted expenditures from these funds are proposed at $129.7 million for fiscal year 2026-27, which is a decrease of $17.2 million or 11.7% below the fiscal year 2025-26 adopted budget.

A more detailed look at the year-over-year variances in the city’s enterprise funds, as well as information about the city’s other special revenue funds, can be found in the Operating Budget overview.

Capital Improvement Program
Carlsbad takes a long-range planning approach to building high-quality facilities and infrastructure that support the needs and priorities of the community. Projects in its Capital Improvement Program 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.

Because of the city’s financial planning, city staff are able to modernize, repair and replace infrastructure as needed and in accord with best governmental practices. City staff prioritize projects in the Capital Improvement Program using several factors, including potential risks to health, safety and the environment, regulatory or mandated requirements, community values, the condition of the asset, annual recurring costs and asset longevity, scheduling and cost efficiencies, project readiness and funding availability. Staff also consider community input, consistency with studies and reports, staff availability, alignment with Operating Budget and level of service standards or expectations.

Changes were made to the administration of the Capital Improvement Program in fiscal year 2024-25 to provide the City Council with a greater ability to direct the pace and funding of the city’s major capital improvement projects while increasing transparency around projects that are planned and underway:
• Rather than having the city budget for the entire cost of a project well in advance of when the project is scheduled to begin, funding is appropriated phase by phase for scoping out the project, developing a conceptual design and the final design. • Once a project is ready for the City Council to consider appropriating money for project June 16, 2026
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construction, staff will provide an up-to-date cost estimate based on the actual project design and timing.
• The Capital Improvement Program budget has historically spanned a 15-year timeframe.

Now, the budget focuses on projects planned in the next five years, with more detailed information on those projects. A 15-year forecast of how much money will be available for future projects is also provided.

The Fiscal Year 2026-27 Capital Improvement Program outlines $56.9 million in new appropriations to provide additional funding for continuing existing projects, as well as funding for new projects.

Capital Improvement Program appropriations by department for FY 2026-27

The five-year Capital Improvement Program includes six new proposed projects, with a total funding request in fiscal year 2026-27 of $1.65 million. Details on these proposed new projects begin on page I-6 of Exhibit 22 and in Attachment A of Exhibit 12.

As the current project conditions and scope of each project are continually re-evaluated, some projects are removed from the list. This streamlining process allows for unspent balances to be returned to the original funding sources so that they can be reallocated to other projects. Three projects are proposed to be removed from the Capital Improvement Program in fiscal year 2026-27 because of changed conditions that caused the projects to no longer be recommended.

The Capital Improvement Program includes estimated budget information for a 15-year period to provide the most comprehensive information about known future projects. A complete list of projects and estimated funding included in the five-year program can be found in Exhibit 1, Attachment B2. All future construction costs are estimates, which are reviewed and refined each year and shown in the 15-year funding forecast beginning on page I-29 of Exhibit 22.

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The Capital Improvement Program is funded from capital funds such as the General Capital Construction and Infrastructure Replacement Fund as well as developer fees, special district fees, taxes from the community facilities districts and bridge and thoroughfare benefit districts water and wastewater replacement funds and other sources such as grants, sales taxes and contributions from other agencies. Estimated capital fund revenues for fiscal year 2026-27 are $95.7 million. Projected capital fund balances, revenue and expenditure summaries are provided beginning on page I-12 of Exhibit 22.

Strategic Digital Transformation Investment Program
City staff introduced Connected Carlsbad: An Inclusive City Innovation Roadmap to the City Council in 2019 to provide a high-level, organized guide to the principles that matter to the city in creating a more connected community. The Strategic Digital Transformation Investment Program was put in place in fiscal year 2021-22 to expand Connected Carlsbad by defining a strategy for evaluating and prioritizing projects and a five-year investment roadmap that includes estimated costs and timelines. This new investment program is organized into the five primary Connected Carlsbad goal areas, which were approved by the City Council on Jan. 14, 2020.

The digital transformation program includes budget estimates for projects planned over the next five years so the City Council and the community can be more fully aware of long-term plans and funding needs. Even though budget estimates are included in the five-year plan, staff may only spend money on the projects included in each year’s adopted city budget. More information about the city’s strategy to invest in digital transformation and how the city evaluates these projects can be found on page H-2 of the digital investment program document in Exhibit 21.

The fiscal year 2026-27 program outlines 35 continuing and new projects planned over the next five years at an estimated total cost of $42.1 million. Included in the $42.1 million is about $17.9 million in estimated new costs over the same time frame to provide additional funding for the continuation of existing projects as well as funding for new projects. The $17.9 million also contains $6.6 million of estimated new appropriations for fiscal year 2026-27 for these projects. The tables below present estimated total project costs by Connected Carlsbad primary goal area for the five fiscal years of 2027-31 and fiscal year 2026-27:

Strategic Digital Transformation Investment Program projects for fiscal years 2027-31 appropriations by Connected Carlsbad goal area
(in millions)
Program Percent Cost
Pursue communitywide digital transformation 55% $23.3
Build capacity for data-driven decision making 3% $1.1
Foster a vibrant civic engagement culture 3% $1.4
Enhance accessibility and transparency 3% $1.2
Promote security and sustainability through connectivity 36% $15.1 Total 100% $42.1

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Strategic Digital Transformation Investment Program projects for fiscal year 2026-27 appropriations by Connected Carlsbad goal area
(in millions)
Program Percent Cost
Pursue communitywide digital transformation 66% $4,350,000 Foster a vibrant civic engagement culture 1% $100,000
Enhance accessibility and transparency 2% $100,000
Promote security and sustainability through connectivity 31% $2,009,311 Total 100% $6,559,311

The details of the five-year and one-year appropriations requests can be found on pages H-23 and H-24 in Exhibit 21.

Each project identified in the digital transformation program is important to the overall technology health of the city by providing for increased efficiencies, security, transparency and/or informational knowledge.

There are two funding sources for the $6.6 million in appropriations that staff are requesting for the digital transformation program for fiscal year 2026-27:
• Technology Investment Capital Fund
• Information Technology Replacement Fund
Both of these funding sources have the necessary balances to accommodate the new appropriations without additional revenues or transfers. The details for the funding sources can be found in Exhibit 21 on page H-25.

Changes to the FY 2026-27 Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program from preliminary to final versions Staff made two changes since the preliminary operating budget, Strategic Digital Transformation Investment and Capital Improvement programs were presented to the City Council on May 19, 2026:
• Operating Budget: Appropriated $294,926 to the Fire Department in the General Fund to fund the conversion of a part-time Fire Prevention Specialist to a full-time Assistant Fire Marshal, a one-time purchase of a half-ton, four-wheel-drive pickup truck for field inspections and wildfire mitigation operations, and ongoing annual programs costs for resident education and outreach materials and inspection software. The Wildfire Mitigation Plan Phase 1 Report was provided to the City Council on June 9, 2026, and these appropriations will support Phase 2 of the plan. If approved, the fiscal year 2026- 27 operating surplus will decrease from approximately $500,000 to $200,000. • Capital Improvement Program: Appropriated $2,140,000 to the College Boulevard Extension project to re-commence conceptual design services. Sufficient funding exists for this one-time appropriation. This change resulted in an additional $2,140,000 appropriation to the “Other” funding source in fiscal year 2026-27, and reductions in the Transnet county transportation tax funding source of $200,000 in fiscal year 2028-29 and $540,000 in fiscal year 2029-30.

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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 City Council request to hold a community budget workshop City staff held a public workshop at the Faraday Administration Center on May 21, 2026, from 5:30 to 7:30 p.m., to provide community members with an opportunity to learn about the proposed fiscal year 2026-27 city budget, ask questions of staff and provide their feedback. City staff promoted the workshop through various channels and nine community members attended. Seven community members provided verbal comments or questions. A complete summary of the workshop and the resulting comments is provided as Exhibit 23.

Gann appropriations limit
In addition to adopting the Operating Budget, the City Council is asked to adopt the Gann Appropriations Limit — a state cap on how much tax revenue a government can spend in a given year — as required by Article XIIIB of the California Constitution. This limit creates a restriction on the amount of revenue that can be appropriated for spending in any fiscal year.

The revenues that are subject to this limitation are those considered “proceeds of taxes.” The basis for calculating the Gann limit began in FY 1978-79 and is adjusted each year based on population growth and inflation. The city’s spending limit for FY 2026-27 is calculated at $707.1 million, while the calculation of the city’s spending projections subject to the limit is $208.4 million, well below the legal limit for the coming fiscal year.

Fees, charges for services, cost of service study and Cost Recovery Policy update Staff evaluate and propose changes to the city’s fees for services every year. Staff conduct these annual reviews to ensure that the fees being charged do not exceed the direct and indirect costs of providing the related services. A comprehensive cost of service study is prepared every five to seven years to update the calculation of the cost and confirm that fees and charges for service do not exceed the updated cost.

The last comprehensive cost of service study on most general city fees and all development service fees was conducted in 2019 and approved by the City Council on June 8, 2021. At that time, the City Council also directed staff to propose a cost recovery policy to establish a process for adjusting existing fees to industry standard cost recovery ranges and for recommending fee changes in the future. Based on this direction, staff presented and the City Council approved the city’s Cost Recovery Policy on March 14, 2023, as City Council Policy No. 95. On June 18, 2024, the City Council approved amendments to the policy to clarify cost recovery rates for certain water reconnection fees.

The Cost Recovery Policy recommends conducting a comprehensive study every five to seven years. At this time in 2024, staff reported plans to undertake a new comprehensive cost of service study to account for the significant changes in costs and business processes since 2019.

Staff in all departments have been involved with this study throughout fiscal years 2024-25 and 2025-26. The full report generated by that study was presented to City Council on May 19, 2026.

To alleviate potential upfront impacts of cost recovery increases recommended as a result of that report and increases in fees in certain categories that remain below cost recovery thresholds outlined in the Cost Recovery Policy will be phased in over three to five years to allow staff to assess changes over time. These include 79% of planning fees, 63% of engineering fees and 28% of building fees.

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To facilitate this gradual increase in cost recovery, staff are proposing changes to the Cost Recovery Policy, City Council Policy No. 95. The recommended changes are as follows:
• Revise the “Procedures” section of the policy statement to allow fees to increase to their cost recovery targets over a period of five years, instead of the previous three years; and
• Revise the “Procedures” section of the policy statement to allow staff to recommend and City Council to consider phase-in time periods of greater than five years in certain exceptional circumstances where it may be warranted.

These revisions will maintain the city’s cost recovery targets while ensuring that other considerations can be properly taken into account as the results of the cost of service study are implemented.

A resolution amending City Council Policy No. 95 – Cost Recovery Policy for Fees and Charges for Services to incorporate these changes is included as Exhibit 14. Companion resolutions applying the amended policy to Carlsbad Municipal Water District fees and housing services fees are included as Exhibits 15 and 16. A version of the policy showing the proposed changes is included as Exhibit 19. Adoption of the City Council resolution amending the policy requires four affirmative votes. Adoption of the companion resolutions applying the policy to Carlsbad Municipal Water District fees and housing services fees requires three affirmative votes.

Other fees and charges for services
Certain fees that are part of the proposed Master Fee Schedule (Exhibit 7) but were not part of the cost of service study will instead be adjusted based on price indices as described below. • General city fees are charged for the use of city services and property.

Depending on the fee, they are increased annually by the increase in the annual West Urban Consumer Price Index, or the San Diego Consumer Price Index, published by the Bureau of Labor and Statistics, both of which reflect the cost of inflation. The West Urban Consumer Price Index has increased by 2.7% since last year while the San Diego Consumer Price Index has increased by 2.6%. • Development related service fees are charged to recover the cost of staff time and materials spent on development-related activities. These change annually by the change in the West Urban Consumer Price Index.
• Development impact fees are used to pay for infrastructure projects that are needed as a result of new development. These fees will be increased by the index stated in the respective resolution or ordinance establishing the fee, typically the Engineering News-Record Construction Cost Index. • Traffic impact fees are adjusted annually by the change in the Caltrans Construction Cost Index or 2%, whichever is greater. This year the Caltrans Construction Cost Index increased by 1.85%, so traffic impact fees are proposed to increase by 2%.

Ambulance fees have typically been adjusted annually by the Ambulance Inflation Factor, published by the federal Center for Medicare and Medicaid Services. This year, the proposed Master Fee Schedule adjusts ambulance fees by 2.0%. The city will continue adjusting its June 16, 2026
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ambulance fees annually according to the Ambulance Inflation Factor, with more detailed evaluations occurring every three to five years.

Fee categories and changes by fiscal year
* Habitat mitigation fees are adjusted annually at half of the rate of the San Diego Area Consumer Price Index.
** Increase is by the greater of Caltrans Construction Cost Index or 2%. The Caltrans Construction Cost Index is 1.85%.

Fee categories Index name Index
date Source FY
2024-25
FY
2025-26
FY
2026-27
Most general
city and
development
related service
fees
West Region
Urban
Consumer
Price Index
January
2026
Bureau of
Labor Statistics 3.30% 2.40%

2.70%
Habitat
mitigation fees,*
Safety Training
Center facility
rental fees
San Diego
Area
Consumer
Price Index
January
2026
Bureau of
Labor Statistics 3.80% 3.80%

2.60%
All development
impact fees
Los Angeles
Engineering
News-Record
Construction
Cost Index
January
2026
Engineering
News-Record 9.40% 1.90%

0.40%
Traffic impact
fees**
Caltrans
Construction
Cost Index
January
2026
California
Department of
Transportation

2.00% 15.70%

2.00%
Ambulance fees
Ambulance
Inflation
Factor
October
2025
Center for
Medicare and
Medicaid
Services

2.60% 2.40%

2.00%
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Proposed new fees
The proposed Master Fee Schedule includes new fees being proposed by staff to align with current costs and business processes that were not part of the cost of service study. These fees were calculated based on the time and fully burdened hourly rates of staff dedicated to the applicable tasks and set according to the Cost Recovery Policy. (Fully burdened hourly rates include base wages and the costs of benefits and other associated expenses.) The fees are:

Certificate of registration application and appeals fees In keeping with state law and the Carlsbad Municipal Code,3 the city requires a certificate of registration to perform massage services in the City of Carlsbad. As part of proposed update to Chapter 5.16 of the Carlsbad Municipal Code that will be coming before City Council for its consideration in June 2026, the Police Department is proposing both an application and appeals fee for certificates of registration to recover reasonable costs related to processing these applications.

Firearm storage fee
State law authorizes law enforcement agencies to charge reasonable fees to recover the costs of processing and storing firearms that come into the possession of the Police Department.
4 The proposed firearm storage fee is intended to offset these costs, which include cataloging and tracking each weapon, ensuring safe and compliant storage, conducting necessary background checks before release and dedicating staff time to administrative handling. As the volume of stored firearms has increased, these activities have placed a growing demand on departmental resources, and implementing the firearm storage fee would help recover these costs.

Police response for loud disturbances
Section 3.36.040 of the Carlsbad Municipal Code authorizes the city to collect a fee to recover the costs of second and subsequent responses to loud disturbances. These costs include the staff time of employees involved in the response, any damage to city equipment or property and for any medical treatment required for city employees as a result of each response. Police deliver a “Notice of Violation: First Response” as part of their initial response to a loud disturbance that warns the recipient that future responses may incur fees. Staff are proposing formally adding this fee to the Master Fee Schedule to enable the Police Department to recover costs for these responses. The fee that will be collected will be equal to the actual cost of each applicable response.

Secondhand dealer licensing fees
A secondhand dealer license is required by the California Department of Justice for secondhand dealers, such as antique sellers hosting roadshows. The Department of Justice charges a $300 licensing fee that the Police Department collects and remits to the state. These licenses are administrative in nature and must be granted upon receipt of a complete application and proof that the applicant has no prior convictions for offenses involving stolen property. Staff are proposing a fee for both new applications

3 See California Business and Professions Code Section 4600, et. seq. (that is, including the subsequent sections) and other authorities cited in Chapter 5.16 of the Carlsbad Municipal Code.
4 California Penal Code Section 33880; California Family Code Section 6389.

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and for renewals to account for the staff time required to process these applications.

Additionally, the department will continue collecting the state licensing fee and remit it to the state.

Vehicle repossession receipt fee
Upon repossession of a vehicle by the Police Department, the California Vehicle Code requires staff to file a report of repossession. Under state law, the debtor is required to pay a fee of $15 to the city to account for this reporting before they can get the vehicle back. The city has been collecting this fee in keeping with state law but staff are proposing to add it to the Master Fee Schedule to align with current practices.

Affordable housing administrative fees
The Housing & Homeless Services Department currently conducts several affordable housing-related administrative services, none of which have associated cost recovery.

Staff are proposing the following structure and fees to begin recovering costs for some of these services, particularly as the volume of affordable housing construction in the city increases.
• Affordable housing agreement – ownership: Developers who provide affordable for-sale units must enter into an agreement that restricts the sale price and buyer eligibility of those units. Staff are proposing a one-time, project-level fee to cover the city’s cost of preparing and processing these agreements and related documents needed to implement the affordable housing requirements.

Developers must pay this fee before the project’s final map can be approved. All fees collected for this purpose shall be deposited into the housing trust fund and shall cover reasonable costs of administration.
o Per unit (per unit fee added to project cost above): Staff are also proposing a one-time fee be charged for each affordable unit to cover the cost of preparing escrow and compliance documents and ensuring each home sale meets affordability requirements and program rules. • Affordable housing ownership unit – real estate agent: Affordable ownership units are subject to strict requirements related to pricing, marketing, financing and buyer income eligibility. Sales must be handled by a city-approved real estate agent experienced with the program to ensure these rules are followed.

The proposed agent’s fee would be paid through the escrow process. • Affordable housing agreement – rental: Developers who include affordable rental units must also enter into an agreement that restricts rent levels and tenant eligibility. Staff are proposing a one-time, project-level fee to cover the city’s cost of preparing and administering these agreements. This fee would be required prior to final map approval. All fees collected for this purpose shall be deposited into the housing trust fund and shall cover reasonable costs of administration.
• Affordable rental unit compliance and annual monitoring: Affordable rental units require ongoing oversight to ensure compliance with rent limits and tenant eligibility requirements. Staff are proposing an annual fee be charged per unit to fund this monitoring and administrative work. The first year’s fee would be due June 16, 2026
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before a certificate of occupancy is issued and fees will be paid annually after that.

Expedited plan review fee for fire department development applications, plan reviews and inspections
The Fire Department collects fees to recover costs to conduct fire and life safety inspections, review development applications, process permits and perform other tasks to ensure compliance with applicable laws and regulations. The city uses an outside contractor to perform certain plan checking services. When an expedited review is required, the contractor charges a fee to expedite these services. Staff are proposing to add this fee to the Master Fee Schedule; the fees will be passed on to the contractor.

There are also three new fees for additional waste services provided by Republic Services.

These fees, along with all fee changes set by the city’s contract with Republic Services, will take effect on July 1, 2026. These fees are:
• Extra pick-up for trash bags: This service will allow residents to place extra trash bags next to their cart on service day for the driver to collect. Each fee will allow for up to six bags to be collected.
• Pull out rate for carts: This fee will apply when service requires drivers to retrieve carts from a non-curb location at multi-family and commercial properties. • Pull out rate for front load bins: This fee will apply when service requires drivers to manually pull-out and retrieve front load bins from their location for servicing.

On April 23, 2024, the City Council approved updated park land in-lieu fees to be phased in over a three-year period. These are fees developers pay instead of setting aside land for parks. The first updates to these fees went into effect on July 1, 2024, the second updates went into effect on July 1, 2025, and the final updates will take effect on July 1, 2026.

The remaining changes to the proposed Master Fee Schedule will take effect on Sept. 1, 2026.

Details on these rates can be found in the proposed Master Fee Schedule in Exhibit 7.

Fiscal Analysis
The fiscal impact of the proposed budgets is detailed in the attached schedules.

Community Engagement
A staff presentation to the City Council/Board/Commission for the Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program was held on May 19, 2026. A community budget workshop was held on May 21, 2026, to answer questions and receive community input on the proposed budget. Notices on the proposed fee changes were made available to the public at least 10 days in advance of the meeting, published twice in a newspaper of general circulation and sent to the Building Industry Association and SDG&E at least 14 days in advance of the meeting.

The Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program for FY 2026-27 is on file with the Office of the City Clerk and on the city’s website at carlsbadca.gov/departments/finance/city-budget/review-the-budget.

The Capital Improvement Program project details and interactive map are also available to the public on the city’s website and can be found at carlsbadca.gov/residents/projects.

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Options
Staff recommend that the City Council/Board/Commission approve the proposed fiscal year 2026-27 Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program, the Fiscal Year 2026-27 Appropriation Limit, Revision of Fees and Charges for Services, update to the Asset Replacement Reserve, determine the Capital Improvement Program projects’ consistency with the General Plan, and allocate Road Maintenance and Rehabilitation Account funds for Fiscal Year 2026-27.

Should the City Council/Board/Commission direct staff to make changes, any budget changes will have to be approved prior to the July 1, 2026, start of fiscal year 2026-27.

Next Steps
Once adopted, the attached schedules and any adjustments made through a City Council/Board/Commission motion will become the spending plan for fiscal year 2026-27.

Environmental Evaluation
The proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The activity or projects for which this budget is intended to fund may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines.

Exhibits

1. Resolution of the City Council of the City of Carlsbad adopting the final Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program for Fiscal Year 2026-27 for the City of Carlsbad and establishing controls on changes in appropriations for budget funds

2. Resolution of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad adopting the water district’s final Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program for Fiscal Year 2026-27 and establishing controls on changes in appropriations for budget funds

3. Resolution of the Community Development Commission of the City of Carlsbad adopting the final Operating Budget of the Carlsbad Housing Authority for Fiscal Year 2026-27 and establishing controls on changes in appropriations for budget funds

4. Resolution of the Board of Directors of the Carlsbad Public Financing Authority of the City of Carlsbad adopting the final Operating Budget and Capital Improvement Program of The Crossings at Carlsbad Municipal Golf Course for Fiscal Year 2026-27 and establishing controls on changes in appropriations for budget funds

5. Resolution of the City Council of the City of Carlsbad, 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 2026-27 and establishing controls on changes in appropriations for budget funds

6. Resolution of the City Council of the City of Carlsbad establishing the Fiscal Year 2026-27 Appropriations Limit as required by Article XIIIB of the California Constitution and state law June 16, 2026
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7. Resolution of the City Council of the City of Carlsbad adopting changes to the Master Fee Schedule

8. Resolution of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad adopting changes to the Master Fee Schedule

9. Resolution of the Community Development Commission of the City of Carlsbad adopting changes to the Master Fee Schedule

10. Resolution of the City Council of the City of Carlsbad reducing the city’s Asset Replacement Reserve by $400,000 and increasing the unassigned fund balance in the General Fund by the same amount as of July 1, 2026

11. Resolution of the City Council of the City of Carlsbad approving the City of Carlsbad’s share of the Fiscal Year 2026-27 Operating and Capital Budgets of the Encina Wastewater Authority

12. Resolution of the City Council of the City of Carlsbad determining that the Fiscal Year 2026- 27 Capital Improvement Program is consistent with the General Plan and applicable Climate Action Plan measures and actions

13. Resolution of the City Council of the City of Carlsbad 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 2026-27

14. Resolution of the City Council of the City of Carlsbad adopting amendments to City Council Policy No. 95 – Cost Recovery Policy for Fees and Charges for Services

15. Resolution of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad adopting amended City Council Policy No. 95 as the water district’s cost recovery policy

16. Resolution of the Community Development Commission of the City of Carlsbad adopting amended City Council Policy No. 95 as the Commission’s and the Carlsbad Housing Authority’s cost recovery policy

17. Resolution of the City Council of the City of Carlsbad approving the appropriation and transfer of $8,000,000 from General Fund reserves in Fiscal Year 2025-26 to the Infrastructure Replacement Fund to fund future projects

18. Resolution of the City Council of the City of Carlsbad authorizing the appropriation of $294,926 from the General Fund to the Fire Department’s Fiscal Year 2026-27 Operating Budget and the conversion of one part-time Fire Prevention Specialist position to a full-time Assistant Fire Marshal position to support Phase 2 of the Wildfire Mitigation Plan

19. Council Policy No. 95 – Cost Recovery Policy for Fees and Charges for Services with proposed changes

20. Fiscal Year 2026-27 Final Operating Budget Revenue and Expenditure Summary

21. Fiscal Year 2026-27 Strategic Digital Transformation Investment Program Summary

22. Fiscal Year 2026-27 Capital Improvement Program Summary

23. Fiscal Year 2026-27 Budget community workshop summary

24. Memorandum to the City Council from the Library Board of Trustees

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RESOLUTION NO. 2026-119 .

A RES

OLUTION 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 2026- 27 FOR THE CITY OF

CARLSBAD AND ESTABLISHING CONTROLS ON CHANGES IN

APPROPRIATIONS FOR BUDGET FUNDS
WHEREA
S, 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) 2026-27 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. Th at the proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The activity or projects for which this budget is intended to fund may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines.

3. That certain documents now on file in the Office of the City Clerk of the City of Carlsbad, entitled “Fiscal Year 2026-27 Preliminary Operating Budget , Strategic Digital Transformation Investment Program and Capital Improvement Program ” presented at the Joint Special Meeting on May 19, 2026 as Exhibit 6 to Item No. 4 , 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 202 6-27, along with any adjustments, if any, determined by the City Council as set forth in the minutes of this Joint Special Meeting on June 16, 2025.

4. That the amounts reflected as estimated revenues for FY 202 6-27 as shown in Attachments A-A2 and B are adopted as the budgeted revenues for FY 2026-27.

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5. That the amounts designated as the FY 2026-27 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.

6. That the items and amounts as shown in Attachment E are adopted as major capital outlay items over $250,000 requiring City Council approval for FY 2026-27.

7. 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.

8. 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 $250,000 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 M anagement 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.

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x. The City Manager may authorize budget adjustments to increase the appropriations in the Utilities Department for costs pertaining to the Core System Modernization Project and utility billing.
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.

9. 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.

10. That interest earned on grants may be appropriated during the year for the purpose for which the grant was received.

11. That all appropriations in the Capital Improvement Program remaining unexpended a s of June 30, 2026, are appropriated to FY 2026-27 in their respective project budgets.

12. That all appropriations in the Strategic Digital Transformation Investment Program remaining unexpended a s of June 30, 202 6, are appropriated to FY 202 6-27 in their respective project budgets.

13. That all appropriations in the Operating Budget remaining unexpended as of June 30, 2026, related to developer deposits received for developer -funded studies not yet June 16, 2026
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14. That all appropriations for outstanding encumbrances as of June 30, 2026, are continued into FY 2026-27 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 Communit y Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 16th day of June, 2026, by the following vote, to wit:

AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.

NAYS: None.

ABSTAIN: None.

ABSENT: None.
_______
_______________________________
KEITH BLACKBURN, Mayor
_____________
_________________________
SHERRY FREISINGER, City Clerk
(SEAL)
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Attachment A

SCHEDULE OF PROJECTED FUND BALANCE
Projected Projected
Beginning Ending Change as % of
Fund Balance Estimated Estimated Fund Balance July 1, 2025 Fund July 1, 2025 Revenues Expenditures June 30, 2026 Fund Balance General Fund 148,107,692$ * 243,290,260$ 242,086,488$ 152,211,464$ * 2.8% Special Revenue Funds
Affordable Housing 16,185,641 1,410,214 1,779,519 15,816,336 -2.3% Agricultural Mitigation Fee 961,008 32,294 25,864 967,438 0.7% Buena Vista Channel Maintenance District 1,650,936 162,211 259,068 1,554,079 -5.9% Citizens' Option for Public Safety 669,378 971,477 428,146 1,212,709 81.2% Community Development Block Grant 584,752 2,257,707 1,701,327 1,141,132 95.2% Continuum of Care (325,092) 1,589,233 843,799 420,342 -229.3% Cultural Arts Donations 281,406 48,035 97,675 231,766 -17.6% Encampment Resolution Fund 5,495,782 5,666,335 981,388 10,180,729 85.3% Habitat Mitigation Fee - - - - 0.0%
Library and Arts Endowments 287,703 9,759 - 297,462 3.4% Library Gifts and Bequests 2,425,871 433,911 336,595 2,523,187 4.0% Lighting and Landscaping District 2 6,680,026 1,004,201 408,501 7,275,726 8.9% Local Cable Infrastructure 283,528 224,635 293,000 215,163 -24.1% Median Maintenance District 338,035 1,362,868 1,452,402 248,501 -26.5% Opioid Settlement Fund 982,315 164,659 113,606 1,033,368 5.2% Parking In Lieu Fee 1,113,493 36,068 59,823 1,089,738 -2.1% Permanent Local Housing Allocation 18,637 474,657 488,440 4,854 -74.0% Police Asset Forfeiture 348,717 77,762 64,608 361,871 3.8% Public Safety Grants - 405,158 303,246 101,912 0.0% Recreation Donations 371,229 33,202 25,306 379,125 2.1% Rental Assistance 463,594 15,974,416 15,938,397 499,613 7.8% Senior Donations 329,456 224,582 16,683 537,355 63.1% Street Lighting Maintenance District 2,611,113 1,082,694 1,206,227 2,487,580 -4.7% Street Tree Maintenance District 780,935 997,927 1,026,772 752,090 -3.7% Tyler Court Apartments 299,562 1,724,293 724,488 1,299,367 333.8% Total Special Revenue Funds 42,838,025 36,368,298 28,574,880 50,631,443 18.2% Enterprise Funds
Water Operations 20,794,853 54,390,290 66,728,534 8,456,609 -59.3% Recycled Water Operations 11,333,321 14,781,188 24,975,236 1,139,273 -90.0% Wastewater Operations 12,541,249 29,919,208 35,953,084 6,507,373 -48.1% Solid Waste Management 8,432,574 11,712,682 6,269,886 13,875,370 64.5% Golf Course 9,036,691 12,801,945 10,487,819 11,350,817 25.6% Total Enterprise Funds 62,138,688 123,605,313 144,414,559 41,329,442 -33.5% Internal Service Funds
Workers' Compensation 270,209 8,600,819 7,263,356 1,607,672 495.0% Risk Management 314,834 5,805,401 5,521,965 598,270 -90.0% Vehicle Maintenance 737,200 4,360,003 4,590,046 507,157 -31.2% Vehicle Replacement 26,998,887 9,852,891 5,100,000 31,751,778 17.6% Information Technology 11,518,351 20,423,040 20,397,138 11,544,253 0.2% Total Internal Service Funds 39,839,481 49,042,154 42,872,505 46,009,130 15.5% Successor Agency Housing Trust Fund 238,044 8,078 - 246,122 3.4% Total Operating Funds 293,161,930$ 452,314,103$ 457,948,432$ 290,427,601$ -0.9% * For the General Fund only, this represents unassigned fund balance. The General Fund projected ending fund balance as of June 30, 2026 includes an increase of $2.9 million because of a reduction in the Asset Replacement Reserve in the General Fund that occurred on March 24, 2026. The Asset Replacement Reserve decreased from $10.5 million to $7.6 million because the Police Department determined it did not need its original full allocation for radio replacements.

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SCHEDULE OF PROJECTED FUND BALANCE

Projected Projected
Beginning Ending Change as % of
Fund Balance Estimated Adopted Fund Balance June 30, 2026 Fund June 30, 2026 Revenues Budget June 30, 2027 Fund Balance General Fund 144,611,464$ * 249,593,108$ 249,096,157$ 145,108,415$ * 0.3% Special Revenue Funds
Affordable Housing 15,816,336 790,093 587,022 16,019,407 1.3% Agricultural Mitigation Fee 967,438 31,687 - 999,125 3.3% Buena Vista Channel Maintenance District 1,554,079 154,699 112,282 1,596,496 2.7% Citizens' Option for Public Safety 1,212,709 324,403 625,322 911,790 -24.8% Community Development Block Grant 1,141,132 569,758 475,561 1,235,329 8.3% Continuum of Care 420,342 1,679,846 1,679,846 420,342 0.0% Cultural Arts Donations 231,766 46,770 159,500 119,036 -48.6% Encampment Resolution Fund 10,180,729 147,015 8,241 10,319,503 1.4% Habitat Mitigation Fee - - - - 0.0% Library and Arts Endowments 297,462 9,596 6,000 301,058 1.2% Library Gifts and Bequests 2,523,187 368,001 547,699 2,343,489 -7.1% Lighting and Landscaping District 2 7,275,726 1,009,402 416,500 7,868,628 8.2% Local Cable Infrastructure 215,163 224,907 284,586 155,484 -27.7% Median Maintenance District 248,501 1,526,946 1,564,413 211,034 -15.1% Opioid Settlement Fund 1,033,368 293,472 254,430 1,072,410 3.8% Parking In Lieu Fee 729,738 ** 35,224 63,500 701,462 -3.9% Permanent Local Housing Allocation 4,854 211,366 206,500 9,720 100.3% Police Asset Forfeiture 361,871 12,576 175,000 199,447 -44.9% Public Safety Grants 101,912 215,750 77,250 240,412 -135.9% Recreation Donations 379,125 32,030 81,200 329,955 -13.0% Rental Assistance 499,613 16,366,513 15,931,592 934,534 87.1% Senior Donations 537,355 33,366 33,500 537,221 0.0% Street Lighting Maintenance District 2,487,580 1,090,012 1,318,602 2,258,990 -9.2% Street Tree Maintenance District 752,090 557,981 1,065,127 244,944 -67.4% Tyler Court Apartments 1,299,367 906,769 810,353 1,395,783 7.4% Total Special Revenue Funds 50,271,443 26,638,182 26,484,026 50,425,599 0.3% Enterprise Funds
Water Operations 8,456,609 62,754,668 64,563,333 6,647,944 -21.4% Recycled Water Operations 1,139,273 11,317,795 12,439,690 17,378 -98.5% Wastewater Operations 6,507,373 32,796,816 33,945,724 5,358,465 -17.7% Solid Waste Management 13,875,370 8,442,602 7,236,564 15,081,408 8.7% Golf Course 11,350,817 11,915,000 11,540,000 11,725,817 3.3% Total Enterprise Funds 41,329,442 127,226,881 129,725,311 38,831,012 -6.1% Internal Service Funds
Workers' Compensation 1,607,672 9,015,015 7,782,924 2,839,763 76.6% Risk Management 598,270 6,218,127 5,498,085 1,318,312 120.4% Vehicle Maintenance 507,157 5,081,680 4,839,570 749,267 47.7% Vehicle Replacement 31,751,778 6,578,848 5,111,501 33,219,125 4.6% Information Technology 11,544,253 20,897,692 20,699,364 11,742,581 1.7% Total Internal Service Funds 46,009,130 47,791,362 43,931,444 49,869,048 8.4% Successor Agency Housing Trust Fund 246,122 7,955 - 254,077 3.2% Total Operating Funds 282,467,601$ 451,257,488$ 449,236,938$ 284,488,151$ 0.7% * For the General Fund only, this represents unassigned fund balance. The General Fund projected beginning fund balance as of June 30, 2026 includes an adjustment to the asset replacement reserve, reducing the previous year's $7.6 million allocation to $7.2 million. An adjustment was also made for a one-time use of General Fund reserves in the form of an $8 million transfer to the Infrastructure Replacement Fund. **$360,000 of this fund balance instead appears in the Capital Improvement Program Budget for capital costs applicable to this fund's use.

June 16, 2026
Item #6 Page 26 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 Attachment A2

SCHEDULE OF REVENUE ESTIMATES
2025-26 2026-27 Change as % Difference
2024-25 Estimated Estimated of 2025-26 2025-26 to
Revenue Source Actuals Revenue Revenue Estimated 2026-27 General Fund
Taxes
Property Tax 96,897,959$ 100,142,982$ 104,719,039$ 4.6% 4,576,057$ Sales Tax 55,867,938 54,386,009 55,021,692 1.2% 635,683 Transient Occupancy Tax 35,509,738 35,553,625 35,922,721 1.0% 369,096 Franchise Tax 6,836,876 7,409,253 7,549,953 1.9% 140,700 Business License Tax 6,230,578 7,071,422 7,000,181 -1.0% (71,241) Transfer Tax 1,581,880 1,724,744 1,733,368 0.5% 8,624 Total Taxes 202,924,969 206,288,035 211,946,954 2.7% 5,658,919 Intergovernmental
Homeowners Exemption 319,005 300,000 306,000 2.0% 6,000 Other Intergovernmental 1,968,934 1,021,980 987,826 -3.3% (34,154) Total Intergovernmental 2,287,939 1,321,980 1,293,826 -2.1% (28,154) Licenses and Permits
Building Permits 2,052,227 1,650,000 2,000,000 21.2% 350,000 Other Licenses and Permits 1,393,067 1,302,697 1,410,697 8.3% 108,000 Total Licenses And Permits 3,445,294 2,952,697 3,410,697 15.5% 458,000 Charges for Services
Planning Fees 800,169 890,200 952,000 6.9% 61,800
Building Department Fees 749,719 1,170,000 890,000 -23.9% (280,000) Engineering Fees 1,028,200 943,000 980,000 3.9% 37,000 Ambulance Fees 7,019,499 7,055,000 6,800,000 -3.6% (255,000) Recreation Fees 3,297,511 3,338,864 3,451,914 3.4% 113,050 Other Charges or Fees 2,153,017 1,650,128 1,890,400 14.6% 240,272 Total Charges For Services 15,048,115 15,047,192 14,964,314 -0.6% (82,878) Fines and Forfeitures 394,978 426,035 393,000 -7.8% (33,035) Income from Investments and Property 15,260,783 10,281,939 11,549,886 12.3% 1,267,947 Interdepartmental Charges 5,462,411 5,347,999 5,531,217 3.4% 183,218 Other Revenue Sources 556,008 1,624,383 503,214 -69.0% (1,121,169) Total General Fund 245,380,497$ 243,290,260$ 249,593,108$ 2.6% 6,302,848$ June 16, 2026
Item #6 Page 27 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

SCHEDULE OF REVENUE ESTIMATES

2025-26 2026-27 Chang e as % Difference
2024-25 Estimated Estimated of 2025-26 2025-26 to
Revenue Source Actuals Revenue Revenue Estimated 2026-27 Special Revenue Funds
Affordable Housing
Affordable Housing Fees 264,268$ 366,964$ 120,000$ -67.3% (246,964)$ Property Tax - - - 0.0% - Interest Income 998,458 1,027,925 665,093 -35.3% (362,832) Other Revenue 94,953 15,325 5,000 -67.4% (10,325) Total Affordable Housing 1,357,679 1,410,214 790,093 -44.0% (620,121) Agricultural Mitigation Fee
Agricultural Mitigation Fees - - - 0.0% - Interest Income 57,145 32,294 31,687 -1.9% (607) Total Agriculutural Mitigation Fee 57,145 32,294 31,687 -1.9% (607) Buena Vista Channel Maintenance
Assessment Fees 119,567 106,027 100,000 -5.7% (6,027) Interest Income 89,505 56,184 54,699 -2.6% (1,485) Total Buena Vista Channel Maintenance 209,072 162,211 154,699 -4.6% (7,512) Citizens' Option for Public Safety
State Funding (AB3229) 260,392 948,242 300,000 -68.4% (648,242) Interest Income 35,632 23,235 24,403 5.0% 1,168 Total Citizens' Option For Public Safety 296,024 971,477 324,403 -66.6% (647,074) Community Development Block Grant
Federal Grant 551,332 1,500,000 534,758 -64.4% (965,242) Interest Income 87,096 15,828 5,000 -68.4% (10,828) Other Revenue 510,371 741,879 30,000 -96.0% (711,879) Total Community Dev. Block Grant 1,148,799 2,257,707 569,758 -74.8% (1,687,949) Continuum of Care
Federal Grant 861,739 1,589,233 1,679,846 5.7% 90,613 Total Cultural Arts Donations 861,739 1,589,233 1,679,846 5.7% 90,613 Cultural Arts Donations
Donations 55,390 38,550 38,550 0.0% - Interest Income 17,145 9,485 8,220 -13.3% (1,265) Total Cultural Arts Donations 72,535 48,035 46,770 -2.6% (1,265) June 16, 2026
Item #6 Page 28 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

SCHEDULE OF REVENUE ESTIMATES

2025-26 2026-27 Change as % Difference
2024-25 Estimated Estimated of 2025-26 2025-26 to
Revenue Source Actuals Revenue Revenue Estimated 2026-27 Special Revenue Funds - Continued
Encampment Resolution Fund
State Grant 3,954,460 5,492,180 - -100.0% (5,492,180) Interest Income 92,136 174,155 147,015 -15.6% (27,140) Total Community Dev. Block Grant 4,046,596 5,666,335 147,015 -97.4% (5,519,320) Habitat Mitigation Fee
Mitigation Fees - - - 0.0% - Interest Income 346 - - 0.0% - Total Habitat Mitigation Fee 346 - - 0.0% - Library And Arts Endowment Fund
Interest Income 15,676 9,759 9,596 -1.7% (163) Total Library And Arts Endowment Fund 15,676 9,759 9,596 -1.7% (163) Library Gifts/Bequests
Gifts and Bequests 713,960 353,552 291,741 -17.5% (61,811) Interest Income 115,240 80,359 76,260 -5.1% (4,099) Total Library Gifts/Bequests 829,275 433,911 368,001 -15.2% (65,910) Lighting And Landscaping District 2
Assessment Fees 765,283 775,700 775,900 0.0% 200 Interest Income 339,118 228,501 233,502 2.2% 5,001 Total Lighting And Landscaping Dist. 2 1,104,401 1,004,201 1,009,402 0.5% 5,201 Local Cable Infrastructure Fund
Cable Fees 242,147 220,000 220,000 0.0% - Interest Income 16,963 4,635 4,907 5.9% 272 Total Local Cable Infrastructure Fund 259,110 224,635 224,907 0.1% 272 Median Maintenance
Assessment Fees 371,794 350,000 350,000 0.0% - Other 1,033,408 1,012,868 1,176,946 16.2% 164,078 Total Median Maintenance 1,405,202 1,362,868 1,526,946 12.0% 164,078 Opioid Settlement Fund
Settlements 69,641 123,688 254,430 105.7% 130,742 Other Revenue 37,036 40,971 39,042 -4.7% (1,929) Total Opioid Settlement 106,677 164,659 293,472 78.2% 128,813 Parking In Lieu
Parking In Lieu Fees - - - 0.0% - Interest Income 63,365 36,068 35,224 -2.3% (844) Total Parking In Lieu 63,365 36,068 35,224 -2.3% (844) Permanent Local Housing Allocation
State Grant 317,783 466,244 210,000 -55.0% (256,244) I
nterest Income 16,169 8,413 1,366 -83.8% (7,047) Total Police Grants 333,952 474,657 211,366 -55.5% (263,291) Police Asset Forfeiture
Asset Forfeitures 19,693 64,837 - -100.0% (64,837) Interest Income 20,392 12,925 12,576 -2.7% (349) Total Police Asset Forfeiture 40,085 77,762 12,576 -83.8% (65,186) June 16, 2026
Item #6 Page 29 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

SCHEDULE OF REVENUE ESTIMATES

2025-26 2026-27 Change as % Difference
2024-25 Estimated Estimated of 2025-26 2025-26 to
Revenue Source Actuals Revenue Revenue Estimated 2026-27 Special Revenue Funds - Continued
Public Safety Grants
Federal Grant 334,523 245,158 138,500 -43.5% (106,658) State Grant 6,603 160,000 77,250 -51.7% (82,750) Total Police Grants 341,126 405,158 215,750 -46.8% (189,408) Recreation Donations
Donations 52,075 20,700 19,300 -6.8% (1,400) Interest Income 18,818 12,502 12,730 1.8% 228 Total Recreation Donations 70,893 33,202 32,030 -3.5% (1,172) Rental Assistance
Federal Grant 14,794,213 15,764,531 16,154,535 2.5% 390,004 Other Revenue 10,786 209,885 211,978 1.0% 2,093 Total Rental Assistance 14,804,999 15,974,416 16,366,513 2.5% 392,097 Senior Donations
Donations 1,405 187,000 1,000 -99.5% (186,000) Other Revenue 21,275 22,000 15,000 -31.8% (7,000) Interest Income 17,782 15,582 17,366 11.5% 1,784 Total Senior Donations 40,462 224,582 33,366 -85.1% (191,216) Street Lighting
Assessment Fees 743,727 740,000 740,000 0.0% - Other Revenue 205,811 259,400 259,400 0.0% - Interest Income 163,165 83,294 90,612 8.8% 7,318 Total Street Lighting 1,112,703 1,082,694 1,090,012 0.7% 7,318 Street Tree Maintenance
Assessment Fees 472,522 470,000 470,000 0.0% - Other Revenue 533,750 527,927 87,981 -83.3% (439,946) Total Street Tree Maintenance 1,006,272 997,927 557,981 -44.1% (439,946) Tyler Court Apartments
Rental Income 746,299 818,088 794,893 -2.8% (23,195) Other Revenue 6,814 906,205 111,876 -87.7% (794,329) Total Tyler Court Apartments 753,113 1,724,293 906,769 -47.4% (817,524) Total Special Revenue Funds 30,337,246$ 36,368,298$ 26,638,182$ -26.8% (9,730,116)$ June 16, 2026
Item #6 Page 30 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

SCHEDULE OF REVENUE ESTIMATES

2025-26 2026-27 Change as % Difference
2024-25 Estimated Estimated of 2025-26 2025-26 to
Revenue Source Actuals Revenue Revenue Estimated 2026-27 Enterprise Funds
Water Operations
Water Sales 28,612,227$ 31,354,418$ 37,258,021$ 18.8% 5,903,603$ Ready-to-Serve charge 14,087,067 16,578,803 19,126,929 15.4% 2,548,126 Property Tax 4,528,062 4,412,291 4,454,165 1.0% 41,874 New Account Charges 107,856 110,000 110,000 0.0% - Back-Flow Program Fees 184,438 170,000 178,500 5.0% 8,500 Penalty Fees 453,881 468,467 456,000 -2.7% (12,467) Interest Income 1,646,260 668,000 610,863 -8.6% (57,137) Engineering Overhead 97,669 43,043 100,000 132.3% 56,957 Service Connection Fees 43,214 34,998 35,000 0.0% 2 Other Revenue 725,698 550,270 425,190 -22.7% (125,080) Total Water Operations 50,486,372 54,390,290 62,754,668 15.4% 8,364,378 Recycled Water Operations
Water Sales 7,345,800 8,548,100 8,632,333 1.0% 84,233 Ready-to-Serve charge 1,449,078 1,549,702 1,585,412 2.3% 35,710 Property Tax 1,065,715 848,325 925,927 9.2% 77,602 Recycled Water Credits - - - 0.0% - Interest Income (335,048) (172,565) - -100.0% 172,565 Other Revenue 2,221,704 4,007,626 174,123 -95.7% (3,833,503) Total Recycled Water Operations 11,747,249 14,781,188 11,317,795 -23.4% (3,463,393) Wastewater Operations
Service Charges 26,191,425 29,352,406 32,287,647 10.0% 2,935,241 Misc. Sewer 11,396 3,259 3,585 10.0% 326 Engineering Overhead (43,750) 113,000 113,000 0.0% - Penalty Fees 168,088 160,000 160,000 0.0% - Interest Income 698,400 222,296 162,512 -26.9% (59,784) Other Revenue 270,059 68,247 70,072 2.7% 1,825 Total Wastewater Operations 27,295,618 29,919,208 32,796,816 9.6% 2,877,608 Solid Waste Management
Recycling Fees (AB939) 905,542 949,244 940,000 -1.0% (9,244) Penalty Fees - - - 0.0% - Trash Surcharge 1,471,505 1,500,000
1,500,000 0.0% -
Interest Income 488,510 375,591 402,602 7.2% 27,011 Other Revenue 1,100,955 8,887,847 5,600,000 -37.0% (3,287,847) Total Solid Waste Management 3,966,512 11,712,682 8,442,602 -27.9% (3,270,080) Golf Course Operations
Charges for Services 11,720,977 12,319,948 11,428,000 -7.2% (891,948) Interest Income 522,543 390,067 395,000 1.3% 4,933 Other Revenue 107,103 91,930 92,000 0.1% 70 Total Golf Course Operations 12,350,623 12,801,945 11,915,000 -6.9% (886,945) Total Enterprise Funds 105,846,374$ 123,605,313$ 127,226,881$ 2.9% 3,621,568$ June 16, 2026
Item #6 Page 31 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

SCHEDULE OF REVENUE ESTIMATES

2025-26 2026-27 Change as % Difference
2024-25 Estimated Estimated of 2025-26 2025-26 to
Revenue Source Actuals Revenue Revenue Estimated 2026-27 Internal Service Funds
Workers' Compensation
Interdepartmental Charges 6,883,620$ 7,226,070$ 7,766,400$ 7.5% 540,330$ Interest Income 1,607,726 1,239,458 1,248,615 0.7% 9,157 Other Revenue 7,428,099 135,291 - -100.0% (135,291) Total Workers' Compensation 15,919,445 8,600,819 9,015,015 4.8% 414,196 Risk Management
Interdepartmental Charges 7,746,820 5,440,030 5,774,880 6.2% 334,850 Interest Income 421,132 318,539 398,247 25.0% 79,708 Other Revenue 67,215 46,832 45,000 -3.9% (1,832) Total Risk Management 8,235,167 5,805,401 6,218,127 7.1% 412,726 Vehicle Maintenance
Interdepartmental Charges 3,866,928 4,312,969 5,023,130 16.5% 710,161 Interest Income 43,234 27,034 23,550 -12.9% (3,484) Other Revenue 25,292 20,000 35,000 75.0% 15,000 Total Vehicle Maintenance 3,935,454 4,360,003 5,081,680 16.6% 721,677 Vehicle Replacement
Interdepartmental Charges 5,947,531 8,777,154 5,416,503 -38.3% (3,360,651) Interest Income 1,400,969 976,102 1,012,345 3.7% 36,243 Other Revenue 1,109,139 99,635 150,000 50.6% 50,365 Total Vehicle Replacement 8,457,639 9,852,891 6,578,848 -33.2% (3,274,043) Information Technology
Interdepartmental Charges 19,149,027 20,038,997 20,514,125 2.4% 475,128 Interest Income 585,752 384,043 383,567 -0.1% (476) Other Revenue 1,631,852 - - 0.0% - Total Information Technology 21,366,631 20,423,040 20,897,692 2.3% 474,652 Total Internal Service Funds 57,914,336$ 49,042,154$ 47,791,362$ -2.6% (1,250,792)$ Trust Funds
Successor Agency Housing Fund
Property Tax Increment - - - 0.0% - Interest Income 125,470 8,078 7,955 -1.5% (123) Total Successor Agency Housing Fund 125,470 8,078 7,955 -1.5% (123) Total Trust Funds 125,470$ 8,078$ 7,955$ -1.5% (123)$ Total Operating Funds 439,603,923$ 452,314,103$ 451,257,488$ -0.2% (1,056,615)$ June 16, 2026
Item #6 Page 32 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 Att achment A3

SCHEDULE OF BUDGET EXPENDITURES
2025-26 Change as %
2023-24 2024-25 Esti mated 2025-26 2026-27 of 2025-26
Department Actuals Actuals Expenditures Budget Budget Budget General Fund
Policy And Leadership Group
City Council 520,658$ 565,679$ 640,000$ 641,472$ 659,910$ 2.9% City Attorney 2,092,350 2,156,141 2,377,000 2,366,301 2,584,183 9.2% City Clerk 1,112,722 1,261,756 1,450,000 1,493,122 1,830,702 22.6% City Manager 2,133,835 2,098,691 2,150,000 2,070,890 2,306,771 11.4% City Treasurer 206,487 246,596 228,600 320,948 383,892 19.6% Communication & Engagement 1,983,038 1,927,770 1,937,000 2,119,816 2,144,557 1.2% Total Policy And Leadership Group 8,049,090 8,256,633 8,782,600 9,012,549 9,910,015 10.0% Administrative Services
Administration 670,554 707,777 902,600 889,826 933,301 5% Finance 5,420,719 5,736,831 6,181,004 6,181,006 6,583,671 6.5% Human Resources 4,354,491 4,639,596 5,295,000 5,600,534 5,515,758 -1.5% Economic Development 2,576,673 956,351 963,570 963,571 974,614 1.1% Total Administrative Services 13,022,437 12,040,555 13,342,174 13,634,937 14,007,344 2.7% Community Services
Community Services Administration 594,430 608,643 720,073 647,219 681,402 5.3% Community Development 13,100,730 13,699,391 12,047,450 11,975,702 12,044,998 0.6% Housing & Homeless Services - - 3,596,400 3,317,186 3,723,022 12% Library & Cultural Arts 13,139,996 14,153,116 15,444,208 15,662,271 16,398,558 4.7% Parks & Recreation 21,252,800 22,076,084 22,830,253 24,241,322 25,132,348 3.7% Total Community Services 48,087,956 50,537,234 54,638,384 55,843,700 57,980,328 3.8% Public Safety
Fire 39,481,750 41,841,218 46,240,148 47,290,269 48,864,845 3.3% Police 56,634,858 58,395,466 64,403,833 64,138,292 68,523,708 6.8% Total Public Safety 96,116,608 100,236,684 110,643,981 111,428,561 117,388,553 5.3% Public Works
Public Works Administration 1,557,313 1,523,469 1,454,000 1,488,222 1,490,677 0.2% Construction Management & Inspection 2,863,158 2,854,032 3,160,000 3,250, 987 3,378,271 3.9% Environmental Sustainability 1,250,959 1,293,622 1,631,736 1,704,367 1,511,940 -11.3% Fleet & Facilities 7,532,550 7,158,113 6,791,195 7,584,723 7,894,636 4.1% Transportation 9,463,214 10,311,161 10,391,466 12,173,662 12,478,307 2.5% Total Public Works 22,667,194 23,140,397 23,428,397 26,201,961 26,753,831 2.1% Miscellaneous Non-Departmental Expenditures
Community Contributions & Village trenching - - - - - - COVID-related 24,163 55,487 2,200 - - - Dues & Subscriptions 82,099 85,813 89,246 90,000 94,000 4.4% Legal Services 194,716 666,137 350,000 1,000,000 800,000 -20.0% Other Miscellaneous Expenditures 57,690 111,605 115,000 150,000 150,000 0.0% Personnel Related 117,265 120,462 130,000 2,000,000 1,500,000 -25.0% Professional Services 37,458 37,756 38,889 39,000 41,000 5.1% Property Tax & Other Administration 734,435 787,459 826,498 800,000 800,000 0.0% Vacancy savings - - - (2,000,000) (2,000,000) 0.0% Total Miscellaneous Non-Departmental Expenditures 1,247,826 1,864,719 1,551,833 2,079,000 1,385,000 -33.4% June 16, 2026
Item #6 Page 33 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

SCHEDULE OF BUDGET EXPENDITURES

2025-26 Change as %
2023-24 2024-25 Estimated 2025-26 2026-27 of 2025-26
Department Actuals Actuals Expenditures Budget Budget Budget General Fund - Continued
Transfers
Transfer to General Capital Construction Fund 11,600,000$ 18,579,226$ 8,882,966$ 8,882,966$ 4,990,362$ -43.8% Transfer to Infrastructure Replacement Fund 4,200,000 4,779,226 8,882,966 8,882,966 4,990,362 -43.8% Transfer to Technology Investment Capital Fund 4,200,000 4,779,226 2,433,187 2,433,187 4,990,362 105.1% Transfer To LLD#1 (Medians & Trees) 1,570,000 1,500,000 1,500,000 1,500,000 1,200,000 -20.0% Transfer To Storm Water Program 340,000 350,000 8,000,000 2,000,000 5,000,000 150.0% Transfer to Fleet Replacement - 560,000 - - - - Transfer to Risk Management 10,200,000 - - - - - Transfer to Workers' Compensation Fund 1,300,000 7,000,000 - - - - Total Transfers 33,410,000 37,547,678 29,699,119 23,699,119 21,171,086 -10.7% Total Miscellaneous Non-Departmental 34,657,826 39,412,397 31,250,952 25,778,119 22,556,086 -12.5% Subtotal General Fund 222,601,111 233,623,900 242,086,488 241,899,827 248,596,157 2.8% City Council Contingency Account - - - 500,000 500,000 0.0% Total General Fund 222,601,111$ 233,623,900$ 242,086,488$ 242,399,827$ 249,096,157$ 2.8% Special Revenue Funds
Affordable Housing 992,739$ 399,012$ 1,779,519$ 589,379$ 587,022$ -0.4% Agricultural Mitigation Fee 220,324 99,485 25,864 - - - Buena Vista Channel Maintenance 136,015 95,363 259,068 112,282 112,282 0.0% Citizens' Option For Public Safety 246,368 299,751 428,146 493,147 625,322 26.8% Community Development Block Grant 583,498 1,017,186 1,701,327 475,561 475,561 0.0% Continuum of Care 461,076 861,738 843,799 1,588,973 1,679,846 5.7% Cultural Arts Donations 101,482 78,062 97,675 114,790 159,500 38.9% Encampment Resolution Fund 1,240,345 4,050,553 981,388 10,514 8,241 -21.6% Habitat Mitigation Fee 29,750 36,659 - - - - Library And Arts Endowment Fund - - - 6,000 6,000 0.0% Library Gifts/Bequests 234,574 271,411 336,595 618,340 547,699 -11.4% Lighting And Landscaping District 2 297,439 337,866 408,501 401,500 416,500 3.7% Local Cable Infrastructure Fund 509,569 470,094 293,000 290,956 284,586 -2.2% Median Maintenance 1,322,678 1,407,489 1,452,402 1,415,287 1,564,413 10.5% Opioid Settlement Fund 23,407 69,640 113,606 103,606 254,430 145.6% Parking In Lieu 55,631 57,120 59,823 61,000 63,500 4.1% Permanent Local Housing Allocation 366,481 359,921 488,440 450,297 206,500 -54.1% Police Asset Forfeiture 54,783 49,000 64,608 95,000 175,000 84.2% Public Safety Grants 280,076 381,034 303,246 77,250 77,250 0.0% Recreation Donations 53,805 25,869 25,306 81,200 81,200 0.0% Rental Assistance 12,954,684 14,905,252 15,938,397 14,774,585 15,931,592 7.8% Senior Donations 19,626 13,402 16,683 33,500 33,500 0.0% Street Lighting 1,114,254 1,238,623 1,206,227 1,294,158 1,318,602 1.9% Street Tree Maintenance 770,326 652,575 1,026,772 1,003,604 1,065,127 6.1% Tyler Court Apartments 793,769 578,215 724,488 652,310 810,353 24.2% Total Special Revenue Funds 22,862,699$ 27,755,320$ 28,574,880$ 24,743,239$ 26,484,026$ 7.0% June 16, 2026
Item #6 Page 34 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

SCHEDULE OF BUDGET EXPENDITURES

2025-26 Change as %
2023-24 2024-25 Estimated 2025-26 2026-27 of 2025-26
Department Actuals Actuals Expenditures Budget Budget Budget Enterprise Funds
Water Operations 52,000,186$ 56,527,712$ 66,728,534$ 65,904,714$ 64,563,333$ -2.0% Recycled Water Operations 8,185,070 7,505,491 24,975,236 28,569,976 12,439,690 -56.5% Wastewater Operations 22,229,318 32,878,568 35,953,084 35,100,317 33,945,724 -3.3% Solid Waste Management 5,808,358 5,646,653 6,269,886 6,754,090 7,236,564 7.1% Golf Course Operations 10,187,428 10,141,011 10,487,819 10,589,000 11,540,000 9.0% Total Enterprise Funds 98,410,360$ 112,699,435$ 144,414,559$ 146,918,097$ 129,725,311$ -11.7% Internal Service Funds
Workers' Compensation 8,713,066$ 16,045,887$ 7,263,356$ 7,224,915$ 7,782,924$ 7.7% Risk Management 13,264,103 8,295,393 5,521,965 5,442,354 5,498,085 1.0% Vehicle Maintenance 4,160,112 4,013,581 4,590,046 4,617,390 4,839,570 4.8% Vehicle Replacement 2,433,464 5,041,086 5,100,000 7,338,365 5,111,501 -30.3% Information Technology 16,486,447 17,927,393 20,397,138 19,869,050 20,699,364 4.2% Total Internal Service Funds 45,057,192$ 51,323,340$ 42,872,505$ 44,492,074$ 43,931,444$ -1.3% Trust Funds
Successor Agency Housing Fund 8,833$ -$ -$ -$ -$ - Total Trust Funds 8,833$ -$ -$ -$ -$ - Total Operating Funds 388,940,195$ 425,401,995$ 457,948,432$ 458,553,237$ 449,236,938$ -2.0% June 16, 2026
Item #6 Page 35 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 Att achment B
PROJECTED FUND BALANCES FOR FISCAL YEAR 202 5-26
July 1, 2025 Projected June 30, 2026
Unreserved Projec ted Projected Debt Service Projected
Fund Balance Revenues Expenditures Loans & Other Balance BTD#2 - Poinsettia Lane/Aviara Pkwy 1,507,580$ 45,759$ -$ - 1,553,339$ BTD#3 - Cannon Road West 565,533 18,702 -$ - 584,235 CFD #1 - Citywide 110,631,001 4,576,447 7,346,795 135,606$ 107,725,048 Gas Tax 17,611,817 3,881,361 2,648,348 - 18,844,830 Gas Tax (Road Maint. & Rehab Acct.) 4,968,511 3,269,943 754,450 - 7,484,004 General Capital Const. 58,608,804 10,902,117 18,292,747 - 51,218,174 Grants - Federal 6,203 - 3,777,560 - (3,771,357)
Grants - State (156,793) 156,793 - - - Infrastructure Replacement 108,346,759 12,515,869 20,408,071 - 100,454,557 Other 2,188,828 73,672 - - 2,262,500 Park Fee Zones 5,13,16, 17, 18 5,362,784 259,934 - - 5,622,718 Parking in Lieu - - - - -
Park-In-Lieu NE 4,699,717 154,173 152,094 - 4,701,796 Park-In-Lieu NW 2,682,931 739,001 1,121,512 - 2,300,420 Park-In-Lieu SE 1,758,969 69,044 10,082 - 1,817,931 Park-In-Lieu SW 1,753,326 57,982 - - 1,811,308 Planned Local Drainage Area A 1,252,554 74,923 17,009 - 1,310,468 Planned Local Drainage Area B 1,609,958 261,706 1,329 - 1,870,335 Planned Local Drainage Area C 1,740,035 81,662 35,833 - 1,785,864 Planned Local Drainage Area D 813,099 29,815 11,610 - 831,304 Public Facilities Fee 37,697,102 2,676,467 397,037 - 39,976,531 Sewer Connection 7,716,348 391,700 323,590 - 7,784,458 Sewer Replacement 33,752,371 22,182,294 11,294,428 - 44,640,237 Traffic Impact Fee 16,871,790 1,815,740 1,964,346 - 16,723,184 Transnet/Local 33,978,574 6,030,943 9,136, 661 - 30,872,856 Water - Potable 40,440,895 1,917,094 356,243 - 42,001,746 Water - Recycled (17,190,861) 18,415,133 79,706 - 1,144,566 Water Replacement - Potable 60,308,590 8,405,915 17,684,363 - 51,030,142 Water Replacement - Recycled 16,098,676 515,106 1,647,896 2,150,000 12,815,886 Total 555,625,102$ 99,519,295$ 97,461,710$ 2,285,606$ 555,397,080$ June 16, 2026
Item #6 Page 36 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 PROJECTED FUND BALANCES FOR FISCAL YEAR 202 6-27

July 1, 2026 June 30, 2026 July 01, 2026 2026-27 June 30, 2027 Projected Estimated Continuing New Total Projected
Fund Balance Revenues Appropriations Appropriations Appropriations Balance BTD#2 - Poinsettia Lane/Aviara Pkwy 1,553,339$ - - - - 1,553,339$ BTD#3 - Cannon Road West 584,235 - - - - 584,235 CFD #1 - Citywide 107,725,048 6,156,090$ 43,795,649$ 110,000$ 43,905,649$ 69,975,489 Gas Tax 18,844,830 3,419,140 10,231,540 5,219,986 15,451,526 6,812,444 Gas Tax (Road Maint. & Rehab Acct.) 7,484,004 3,265,115 6,759,633 3,392,000 10,151,633 597,486 General Capital Const. 51,218,174 4,990,519 17,095,420 (725,674) 16,369,746 39,838,946 Grants - Federal (3,771,357) 9,860,908 6,089,551 - 6,089,551 - Grants - State - 5,534,510 5,534,510 - 5,534,510 - Infrastructure Replacement 100,454,557 500,000 42,935,780 21,963,082 64,898,862 36,055,695 Other 2,262,500 - - 2,140,000 2,140,000 122,500 Park Fee Zones 5,13,16, 17, 18 5,622,718 98,276 1,500,000 - 1,500,000 4,220,993 Parking in Lieu 360,000 - - 360,000 360,000 - Park-In-Lieu NE 4,701,796 - 1,465,893 - 1,465,893 3,235,903 Park-In-Lieu NW 2,300,420 7,770,952 654,000 2,775,000 3,429,000 6,642,372 Park-In-Lieu SE 1,817,931 4,031,384 363,925 1,040,000 1,403,925 4,445,390 Park-In-Lieu SW 1,811,308 - 219,100 - 219,100 1,592,208 Planned Local Drainage Area A 1,310,468 - 14,314 - 14,314 1,296,154 Planned Local Drainage Area B 1,870,335 352,378 15,166 - 15,166 2,207,547 Planned Local Drainage Area C 1,785,864 603,087 63,648 - 63,648 2,325,303 Planned Local Drainage Area D 831,304 296,937 929 - 929 1,127,312 Public Facilities Fee 39,976,531 8,013,762 4, 171,531 936,785 5,108,316 42,881,977 Sewer Connection 7,784,458 1,691,175 7,353,071 (2,204,684) 5,148,387 4,327,246 Sewer Replacement 44,640,237 18,767,240 37,374,383 9,202,999 46,577,382 16,830,095 Traffic Impact Fee 16,723,184 8,637,813 11,874,909 (2,510,000) 9,364,909 15,996,087 Transnet/Local 30,872,856 5,949,524 21,625,274 8,767,000 30,392,274 6,430,106 Water - Potable 42,001,746 4,311,487 3,790,128 2,010,606 5,800,734 40,512,499 Water - Recycled 1,144,566 - 2,543,402 (1,706,835) 836,567 307,999 Water Replacement - Potable 51,030,142 1,424,490 31,078,003 6,704,424 37,782,427 14,672,206 Water Replacement - Recycled 12,815,886 - 4,948,571 1,594,499 6,543,070 6,272,816 Total 555,757,080$ 95,674,786$ 261,498,331$ 59,069,188$ 320,567,519$ 330,864,347$ June 16, 2026
Item #6 Page 37 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

REVENUE PROJECTIONS SCHEDULE

2023-24 2024-25 2025-26 2026-27
Actual Actual Projected Estimated
Fund Revenue Revenue Revenue Revenue
BTD#2 -
Poinsettia Lane/Aviara Pkwy 66,345$ 81,912$ 45,759$ - BTD#3 - Cannon Road West 24,888 30,727 18,702 - CFD #1 - Citywide 7,302,884 9,367,046 4,576,447 6,156,090$ Gas Tax 3,811,249 4,194,626 3,881,361 3,419,140 Gas Tax (Road Maint. & Rehab Acct.) 3,172,894 3,285,130 3,269,943 3,265,115 General Capital Const. 13,423,012 21,359,030 10,902,117 4,990,519 Grants - Federal 56,219 1,133 - 9,860,908 Grants - State 452,295 1,736,530 156,793 5,534,510 Infrastructure Replacement 10,015,495 11,329,989 12,515,869 500,000 Other 91,384 142,082 73,672 - Park Fee Zones 5,13,16, 17, 18 296,607 322,595 259,934 98,276 Parking in Lieu - - - - Park-In-Lieu NE 228,050 339,043 154,173 - Park-In-Lieu NW 1,132,209 839,348 739,001 7,770,952 Park-In-Lieu SE 83,719 567,937 69,044 4,031,384 Park-In-Lieu SW 1,278,208 477,892 57,982 - Planned Local Drainage Area A 69,555 187,851 74,923 - Planned Local Drainage Area B 143,663 94,701 261,706 352,378 Planned Local Drainage Area C 79,010 95,915 81,662 603,087 Planned Local Drainage Area D 57,989 84,096 29,815 296,937 Public Facilities Fee 3,687,412 5,229,666 2,676,467 8,013,762 Sewer Connection 745,457 746,450 391,700 1,691,175 Sewer Replacement 10,879,747 21,464,356 22,182,294 18,767,240 Traffic Impact Fee 2,273,017 1,873,029 1,815,740 8,637,813 Transnet/Local 4,457,603 8,399,842 6,030,943 5,949,524 Water - Potable 2,100,666 2,634,455 1,917,094 4,311,487 Water - Recycled 3,363,806 34,085 18,415,133 - Water Replacement - Potable 8,073,118 8,619,165 8,405,915 1,424,490 Water Replacement - Recycled 887,980 1,001,233 515,106 - Total 78,254,481$ 104,539,865$ 99,519,295$ 95,674,786$ June 16, 2026
Item #6 Page 38 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

BUDGET EXPENDITURE SCHEDULE

2023-24 2024-25 2025-26 2026-27 2026-27 2026-27
Actual Actual Estimated Continuing New Total
FUND Expense Expense Expense Appropriations Appropriations Appropriations BTD#2 - Poinsettia Lane/Aviara Pkwy 57,041$ -$ -$ -$ - -$ BTD#3 - Cannon Road West - - - - - - CFD #1 - Citywide 962,730 1,145,673 7,482,401 43,795,649 110,000$ 43,905,649 Gas Tax 1,984,349 3,241,088 2,648,348 10,231,540 5,219,986 15,451,526 Gas Tax (Road Maint. & Rehab Acct.) 5,045,379 421,040 754,450 6,759,633 3,392,000 10,151,633 General Capital Const. 10,306,345 6,086,353 18,292,747 17,095,420 (725,674) 16,369,746 Grants - Federal 49,535 38,297 3,777,560 6,089,551 - 6,089,551 Grants - State 117,611 562,933 - 5,534,510 - 5,534,510 Infrastructure Replacement 7,293,771 13,976,516 20,408,071 42,935,780 21,963,082 64,898,862 Other - - - - 2,140,000 2,140,000 Park Fee Zones 5,13,16, 17, 18 - - - 1,500,000 - 1,500,000 Parking - - - - 360,000 360,000 Park-In-Lieu NE 34,379 249,811 152,094 1,465,893 - 1,465,893 Park-In-Lieu NW 130,121 699,005 1,121,512 654,000 2,775,000 3,429,000 Park-In-Lieu SE 25,429 553,213 10,082 363,925 1,040,000 1,403,925 Park-In-Lieu SW - - - 219,100 - 219,100 Planned Local Drainage Area A 26,547 26,298 17,009 14,314 - 14,314 Planned Local Drainage Area B 252,941 12,310 1,329 15,166 - 15,166 Planned Local Drainage Area C 5,979 17,574 35,833 63,648 - 63,648 Planned Local Drainage Area D 7,130 27,608 11,610 929 - 929 Public Facilities Fee 1,304,479 418,732 397, 037 4,171,531 936,785 5,108,316 Sewer Connection 3,031,587 34,510 323,590 7,353,071 (2,204,684) 5,148,387 Sewer Replacement 6,529,066 7,659,400 11,294,428 37,374,383 9,202,999 46,577,382 Traffic Impact Fee 1,903,324 875,860 1,964,346 11,874,909 (2,510,000) 9,364,909 Transnet/Local 3,256,939 9,041,136 9,136,661 21,625,274 8,767,000 30,392,274 Water - Potable 134,627 17,076 356,243 3,790,128 2,010,606 5,800,734 Water - Recycled 224,112 3,107,066 79,706 2,543,402 (1,706,835) 836,567 Water Replacement - Potable 2,223,068 9,103,168 17,684,363 31,078,003 6,704,424 37,782,427 Water Replacement - Recycled 400,567 2,664,453 3,797,896 4,948,571 1,594,499 6,543,070 Total 45,307,054$ 59,979,120$ 99,747,316$ 261,498,331$ 59,069,188$ 320,567,519$ June 16, 2026
Item #6 Page 39 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM

STRATEGIC PLAN PROJECTS
Project
ID District Type Project Name Prior
Appropriation
Requested
2026-27
Estimated
2027-28
Estimated
2028-29
Estimated
2029-30
Estimated
2030-31
Estimated
5-Year Total
6065 1 ADA Beach Access - Pine to Tamarack $1,143,800 - ♦ $10,000,000 - - - $10,000,000 6004 2,3 Avenida Encinas Coastal Rail Trail and
Pedestrian Improvements $5,347,653 ♦ $6,220,000 - - - - $6,220,000 4013 1 Barrio Street Lighting $5,684,300 ($1,169,171) - - - - ($1,169,171) 4015 1 Barrio Traffic Calming $4,759,000 - - - - - $0
3896 1 Beach Access Repair and Upgrades -
Pine Avenue to Tamarack $13,511,750 - - - - - $0
4617 2 Business Park Recreational Facility
(Zone 5 Park) $1,500,000 - - - - - $0
6325 4 Camino De Los Coches and La Costa
Avenue Intersection Control $350,000 - - - - - $0
6058 1 Carlsbad Boulevard and Tamarack
Avenue Intersection Improvement $2,825,000 ♦ $2,600,000 - - - - $2,600,000 6113 2 Carlsbad Boulevard Realignment -
Manzano Drive to Island Way $2,000,000 - - - - - $0
201909 2 Carlsbad Boulevard Realignment -
Manzano Drive to Island Way (RTCIP) - - - - - - $0
6069 1 Chestnut Complete Street I-5 to
Railroad Project Study - - - 🔎 $250,000 - - $250,000
4008 Citywide City Hall Complex & Cole Library
Replacement $1,028,105 - - - - ☐ $15,500,000 $15,500,000 6072 2 El Camino Real Widening - Poinsettia
Lane to Camino Vida Roble $4,595,000 $250,000 - - - - $250,000 6051 4 El Camino Real Widening - Arenal
Road to La Costa Avenue $8,700,000 ♦ $7,000,000 - - - - $7,000,000 6094 2 El Camino Real Widening - Sunny
Creek to Jackspar $5,976,050 $350,000 - - - - $350,000
4093 2 Fire Station 7 $100,000 - - - - - $0
4714 2 Fleet Maintenance Refurbishment $3,470,100 ♦ $4,700,000 - - - - $4,700,000 4061 1 Grand Avenue Promenade $300,000 - - - - - $0
6075 1 Kelly Drive and Park Drive Complete
Street Improvements $5,608,000 - - - - - $0
6076 4 La Costa Avenue Traffic Improvements $12,458 - - - - - $0 4724 1 Monroe Street Pool Replacement $20,164,977 ♦ $4,000 - - - - $4,000 3572 2 Orion Center $10,043,839 ☑ ($2) ♦ $24,921,000 ♦ $24,921,000 - - $49,841,998 4612 2,4 Pickleball Courts $355,000 ♦ $3,300,000 - - - - $3,300,000 4612 2,4 Pickleball Courts - ☑ $5,455 - - - - $5,455
3801 2 Robertson Ranch Park Development $2,107,000 - - - - - $0 6031 2,3,4 South Carlsbad Coastline $1,689,776 - - - - - $0 6082 1 State Street and Grand Avenue Road
Improvements - - - ♦ $325,000 - - $325,000
4090 1 State Street Parking Lot Electric
Vehicle Charging Stations $637,000 - - - - - $0
6104 Citywide Sustainable Mobility Plan
Implementation Program $710,566 - - - - - $0
6054 2 Terramar Area Coastal Improvements $12,100,000 ☑ ($4,598,151) - - - - ($4,598,151) 6070 Citywide Traffic Improvement Program $6,576,000 ☑ $200,000 ☑ $200,000 ☑ $200,000 ☑ $200,000 ☑ $200,000 $2,000,000 6070 Citywide Traffic Improvement Program $6,576,000 ♦ $200,000 ♦ $200,000 ♦ $200,000 ♦ $200,000 ♦ $200,000 $2,000,000 6332 4 Traffic Signal - Maverick Way and
Camino De Los Coches $490,000 ♦ $249,000 - - - - $249,000 6626 Citywide Trash Amendment Compliance
Program $630,000 ☑ $1,350,000 ♦ $500,000 ☑ $2,075,000 ♦ $440,000 ☑ $517,000 $4,882,000 6103 1 Tyler Street Sidewalk Improvement
Project $970,000 - - - - - $0
6083 Citywide Utility Undergrounding Program Study - - - - - - $0 🔎 Scoping ☐ Preliminary Design ☑ Final Design ♦ Construction (forecasted amounts; not appropriated in the budget process) New projects in italics Attachment B2
June 16, 2026
Item #6 Page 40 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM

STRATEGIC PLAN PROJECTS
Project
ID District Type Project Name Prior
Appropriation
Requested
2026-27
Estimated
2027-28
Estimated
2028-29
Estimated
2029-30
Estimated
2030-31
Estimated
5-Year Total
🔎 Scoping ☐ Preliminary Design ☑ Final Design ♦ Construction (forecasted amounts; not appropriated in the budget process) New projects in italics 6019 1 Valley and Magnolia Complete Streets $5,058,205 - ♦ $4,717,000 - - - $4,717,000 201974 1 Valley Street Traffic Calming - - - - ☑ $300,000 - $300,000 4609 Citywide Veteran's Memorial Park (All
Quadrants) $57,168,154 - - - - - $0
6089 1 Village Intelligent Parking
Implementation - - - - ☑ $63,000 ♦ $255,000 $318,000
6105 1 Village Lighting - Carlsbad Village Dr
from Harding St to Ocean St $145 - - - - - $0
6108 1 Village Lighting - Gateway Lighting - - - - - - $0 2410 1 Village Lighting - Hospitality District - - - - ☑ $1,050,000 - $1,050,000 6109 1 Village Lighting - Pedestrian
Lampposts Oak Avenue - - - - ☑ $600,000 - $600,000
6110 1 Village Lighting - Pedestrian Lighting
at Village Outskirts - - - - ☑ $950,000 - $950,000
4016 1 Village Lighting - State Street,
Madison, Roosevelt, and Washington $1,103,853 ♦ $1,110,000 - - - - $1,110,000 6106 1 Village Lighting - Train Station Area - - - - ☑ $500,000 - $500,000 Total 21,771,131$ 40,538,000$ 27,971,000$ 4,303,000$ 16,672,000$ June 16, 2026
Item #6 Page 41 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM
Project
ID District Type Project Name Prior
Appropriation
Requested
2026-27
Estimated
2027-28
Estimated
2028-29
Estimated
2029-30
Estimated
2030-31
Estimated
5-Year Total
6118 Citywide ADA Parking Space Modifications - ☑ $300,000 - - - - $300,000 6084 3 Assessment District 97-1 Maintenance $420,000 - - - - - $0 6119 1 Barrio Parking Improvements Project $285,700 ☑ 90,000 ☑ 50,000 - - - $140,000 6119 1 Barrio Parking Improvements Project $285,700 ♦ $250,000 ♦ $150,000 - - - $400,000 4726 2 Cannon Park Restroom $45,765 - - - - - $0
6111 1 Carlsbad Village Drive Reconfiguration $350,000 - ♦ $1,500,000 - - - $1,500,000 201913 Citywide Carlsbad Village Drive Widening -
Pontiac Drive to Victoria Avenue - - - ☑ $700,000 - ♦ $2,500,000 $3,200,000 201916 1 Chestnut Avenue Complete Street
Improvements - Valley to Pio Pico - - - ☐ $250,000 - - $250,000 6098 1 Chestnut Underpass Public Art Project $400,000 - - - - - $0 6074 Citywide City Facility Safety and Parking Lot
Lighting Assessment $2,110,000 ☐ $800,000 - - - - $800,000 4765 Citywide Citywide Community Parks’
Playgrounds Replacements / Upgrades $50,000 ☑ $1,375,000 ♦ $3,250,000 ♦ $2,250,000 - - $6,875,000 4766 Citywide Citywide Facilities Nonfunctional Turf
Removal and Replacement $350,000 ♦ $995,000 - - - - $995,000 3636 2 College Boulevard Extension $959,414 ☐ $2,140,000 - - - - $2,140,000 201944 4 El Camino Real Right Turn Lane to
East Bound Alga Road - - ☑ $438,000 - - - $438,000
6628 1 Laguna Drive Storm Drain $256,000 ☑ $1,000,000 - - - - $1,000,000 4616 3 Leo Carrillo Ranch Park Phase 3B $350,000 ☐ $540,000 ☑ $1,484,000 - - - $2,024,000 4767 1 Northwest Quadrant Older Parks
Rehabilitation and Improvement $350,000 ☑ $950,000 ♦ $750,000 ♦ 1,750,000 ♦ 800,000 - $4,250,000 4767 1 Northwest Quadrant Older Parks
Rehabilitation and Improvement $350,000 - ☐ 950,000 ☑ 750,000 ♦ 1,750,000 ♦ 800,000 $4,250,000 6078 1 Ocean Street Reconfiguration
Concepts Study - - - - 🔎 $400,000 - $400,000
4773 2 Orion Complex Energy Storage - 🔎 $250,000 - - - - $250,000 6115 3 Paseo Del Norte Pedestrian and Bike
Improvements $600,000 ☑ $700,000 - - - - $700,000
4770 2 Police and Fire Headquarters Central
Plant Repair Project $609,330 - - - - - $0
6081 Citywide Roadway Slope Stabilization $1,280,000 - - - - - $0 4768 2 Safety Training Center Emergency
Backup Generator - ♦ $1,000,000 - - - - $1,000,000
6116 Citywide Schools Traffic Safety Program $1,100,000 - - - - - $0 4085 2 South Shore Agua Hedionda Lagoon
Trail $789,940 - - - - - $0
6040 Citywide Traffic Impact Fee Update $318,000 - - - - - $0 6637 Citywide Traffic Signal Cabinet Upgrades $180,000 - - - - - $0 4610 2 Village H South Off Leash Dog Area
and Trail Segment 5B $682,500 - - ♦ $1,400,000 - - $1,400,000 Total $10,390,000 $8,572,000 $7,300,000 $3,490,000 $3,300,000

CRITICAL NEED PROJECTS
🔎 Scoping ☐ Preliminary Design ☑ Final Design ♦ Construction (forecasted amounts; not appropriated in the budget process) New projects in italics June 16, 2026
Item #6 Page 42 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM
Project
ID District Type Project Name Prior
Appropriation
Requested
2026-27
Estimated
2027-28
Estimated
2028-29
Estimated
2029-30
Estimated
2030-31
Estimated
5-Year Total
5545 2 Agua Hedionda Lift Station Biological
Monitoring and Maintenance $225,000 - - - - - $0
5582 2 Avenida Encinas and Cannon Road
Sewer Replacement - $140,000 $1,500,000 - - - $1,640,000 5570 4 Batiquitos Lift Station Improvements - $400,000 $500,000 $9,000,000 - - $9,900,000 5537 3 Buena Interceptor Sewer Access Road
Improvements $100,000 - $432,000 - - - $432,000
5501 2,3 Buena Interceptor Sewer
Improvements $1,758,686 - - $650,000 - - $650,000
5544 2 Buena Interceptor Sewer
Realignment - East Segment $1,907,000 - - $400,000 $5,625,000 - $6,025,000 5215 2 C Tank Access Road and Electrical
Improvements $300,000 $23,000 $1,300,000 - - - $1,323,000 5559 2 Cannon Lift Station Redundant Force
Main $200,000 - $750,000 $5,500,000 - - $6,250,000
5552 2 Cannon Road Lift Station
Improvements $1,490,000 $35,000 - - - - $35,000
5048 2 Carlsbad Boulevard Waterline
Replacement at Terramar $6,480,100 - - - - - $0
5063 2 Carlsbad Municipal Water District
Building and Site Improvements $800,000 $300,000 $4,500,000 - - - $4,800,000 5203 3 Carlsbad Water Recycling Facility
(Encina Capital Projects) $6,175,654 - - $414,000 $434,000 $449,000 $1,297,000 5217 3 Carlsbad Water Recycling Facility
Improvements $350,000 $70,000 $3,307,000 - - - $3,377,000 5007 Citywide Cathodic Protection Program $2,566,700 $200,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $4,200,000 2706 1 Chinquapin Lift Station Force Main
Improvements - - $200,000 $300,000 $2,500,000 - $3,000,000 5554 1 Chinquapin Lift Station Improvements $1,670,000 $200,000 - - - - $200,000 5580 1 Chinquapin Sewer Improvements - $50,000 $960,000 - - - $1,010,000 5013 2 College Boulevard - Cannon Road To
Badger Lane (375 Zone) $278,383 - $1,802,000 - - - $1,802,000 5012 2 College Boulevard - Cannon Road To Badger
Lane (490 Zone) $312,600 - $1,802,000 - - - $1,802,000
5033 1 Crestview Drive Transmission Main $185,000 $25,000 - $740,000 - - $765,000 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 - - - - - $0 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 (Altiva Place Canyon
Restoration) - - - - - - $0

ENTERPRISE PROJECTS
New projects in italics
June 16, 2026
Item #6 Page 43 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

ENTERPRISE PROJECTS
New projects in italics
6623 Citywide Drainage Master Plan Update $1,281,000 - - - - - $0 5218 3 D-Site Recycled Water Pump
Rehabilitation $300,000 - - - - - $0
5553 2 El Fuerte Lift Station Improvements $425,000 - $212,000 $764,000 - - $976,000 2605 2 El Fuerte Lift Station Redundant Force
Main - - - $1,060,000 $4,240,000 - $5,300,000
5801 Citywide Encina Capital Projects (EWPCF) $75,193,401 $4,454,000 $10,125,000 $6,933,000 $5,425,000 $6,836,000 $33,773,000 5539 2 Faraday and El Camino Real Sewer
Replacement - Orion to Palomar $3,434,400 ($3,237,000) $983,000 $3,399,000 - - $1,145,000 5557 1 Harding Street Sewer and Utility
Improvements $1,200,000 $1,500,000 - - - - $1,500,000
5560 1 Home Plant Lift Station Improvements $400,000 - $300,000 $5,000,000 - - $5,300,000 5059 2 Hydroelectric Generation at Water
Facilities $500,000 - - - - - $0
5558 1 Jefferson Street Sewer Replacement $1,500,000 $740,000 - - - - $740,000 5540 2 Las Palmas Trunk Sewer $301,000 - $300,000 $1,500,000 $1,500,000 - $3,300,000 5035 1,3 Limited Access Pipeline Relocation
Program $7,751,000 $465,000 - $620,000 - $3,230,000 $4,315,000 5009 2 Maerkle Facility Improvements $4,091,200 - - - - - $0 5001 2 Maerkle Reservoir Transmission Main $195,000 $600,000 - - $7,300,000 - $7,900,000 5547 4 North Batiquitos Access Road
Improvement $352,000 $26,000 - - - - $26,000
5520 Citywide Odor and Corrosion Prevention
Program $358,000 $300,000 - - - - $300,000
5581 2 Poinsettia Lift Station Redundant
Force Main - $325,000 - $980,000 - $4,020,000 $5,325,000 5556 2 Poinsettia Lift Station Rehabilitation $788,000 $15,000 - - $16,000,000 - $16,015,000 5020 Citywide Pressure Reducing Station Program $7,031,040 $1,200,000 $6,320,000 $500,000 $500,000 $500,000 $9,020,000 5211 Citywide Recycled Water Condition
Assessment Program $850,000 $53,000 $53,000 $53,000 $53,000 $53,000 $265,000 5216 2 Recycled Water System Rehabilitation
and Replacement $1,050,000 $371,000 $371,000 $371,000 $371,000 $371,000 $1,855,000 5212 Citywide Recycled Water Valve and
Appurtenance Replacement Program $380,000 $132,500 $133,000 $133,000 $133,000 $133,000 $664,500 5024 Citywide Reservoir Maintenance and Repair
Program $8,635,000 $4,565,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $8,565,000 5057 N/A Santa Fe II Inlet Pipeline $529,650 $32,000 - - $378,000 - $410,000 5046 3 Santa Fe II Reservoir Site Electrical
Improvements $333,581 - - - - - $0
5542 Citywide SCADA Improvements $17,236,898 - - - - - $0 5513 Citywide Sewer Condition Assessment $1,708,000 $100,000 $105,000 $158,000 $158,000 $158,000 $679,000 3840 Citywide Sewer Lift Station Repairs and
Upgrades $5,175,380 $186,000 $186,000 $186,000 $186,000 $186,000 $930,000 5548 3 Sewer Line Capacity Improvements $5,690,045 $500,000 $6,000,000 $500,000 $6,000,000 $500,000 $13,500,000 5546 Citywide Sewer Modeling $200,000 - - - - - $0
5504 Citywide Sewer Monitoring Program (Capacity) $686,000 - - - - - $0 5503 Citywide Sewer System Rehabilitation and
Replacement $14,426,475 $2,279,000 $2,279,000 $2,279,000 $2,279,000 $2,279,000 $11,395,000 5008 2 Tri-Agency Water Transmission
Pipeline Replacement $2,608,970 - $553,000 - $4,596,000 - $5,149,000 5549 2,3 Vallecitos Interceptor Sewer Cleaning
and CCTV $890,000 - - - - - $0
5535 1 Vista Carlsbad Interceptor - Buena
Vista Lift Station Improvements $997,800 $80,000 $326,000 $4,218,000 - - $4,624,000 3949 Citywide Vista Carlsbad Interceptor - Reach
VC14 To VC15 $21,362,390 - - - - - $0
3950 1 Vista Carlsbad Interceptor - Reach VC3 $111,000 $80,000 $220,000 $984,000 $1,397,000 - $2,681,000 5551 2 Vista Carlsbad Interceptor -
Rehabilitation (VC1 and VC2) $311,000 $140,000 - - - - $140,000 5555 2,3 Vista/Carlsbad Interceptor - Point
Repair Reaches (VC13 & VC14) $3,000,000 - - - - - $0
5051 Citywide Water Infrastructure Condition
Assessment Program $3,440,000 - $450,000 $450,000 $450,000 $450,000 $1,800,000 June 16, 2026
Item #6 Page 44 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

ENTERPRISE PROJECTS
New projects in italics
5058 Citywide Water Modeling $375,000 - - - - - $0
5064 Citywide Water System Improvements - $500,000 $6,000,000 $500,000 $6,000,000 - $13,000,000 3904 Citywide Water System Rehabilitation and
Replacement $22,258,366 $950,000 $3,680,000 $3,680,000 $3,680,000 $3,680,000 $15,670,000 5019 Citywide Water Valve Repair/Replacement
Program $11,367,000 $1,085,000 $1,085,000 $1,085,000 $1,085,000 $1,085,000 $5,425,000 Total $18,884,500 $58,734,000 $54,357,000 $72,290,000 $25,930,000 June 16, 2026
Item #6 Page 45 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM
Project
ID District Type Project Name Prior
Appropriation
Requested
2026-27
Estimated
2027-28
Estimated
2028-29
Estimated
2029-30
Estimated
2030-31
Estimated
5-Year Total
Non-Recurring
4733 2 Alga Norte Park Modifications $2,911,464 - - - - - $0 6063 3 Carlsbad Boulevard Emergency Repair $841,000 - - - - - $0 201912 1 Carlsbad Village Drive and Grand
Avenue Pedestrian and Crossing - - - $170,000 $1,150,000 - $1,320,000 4727 Citywide City Facility Accessibility Upgrades $500,000 - - - - - $0 6616 Citywide City Fire Stations Wash Water BMPs $280,000 - - - - - $0 6326 Citywide Coordinated Traffic Signal Program $4,383,979 - - - - - $0 6622 1 DMP Facility BFB-U (El Camino Real) $1,000,000 - $8,536,000 $70,000 $80,000 $80,000 $8,766,000 4771 3 Dove Library Central Plant
Refurbishment - $200,000 $1,400,000 - - - $1,600,000
4760 1 Downtown Tile Replacement $250,000 - - - - - $0
6099 2 Faraday Avenue Improvements $1,575,000 - - - - - $0 4720 2 Faraday Center Refurbishment $3,154,380 - - - - - $0 4759 2 Fire Station 5 Renovation $2,450,000 $5,000,000 - - - - $5,000,000 6114 2 Flower Fields Overlook Sidewalk
Replacement $250,000 - - - - - $0
6087 Citywide Guardrail Replacement and
Improvement Study $150,000 - - - - - $0
4708 1 Harding Center Refurbishment $817,000 $40,000 $168,000 - - - $208,000 4728 1 Hosp Grove Park Improvements $1,682,000 $2,625,000 - - - - $2,625,000 6606 1 Kelly Drive Channel Repair $3,641,000 - - $1,500,000 - - $1,500,000 6630 4 La Costa Avenue Box Culvert Cleaning $275,000 - - - - - $0 4772 2 Leo Carrillo Ranch Stair Replacement - $500,000 - - - - $500,000 4764 1 Library Learning Center Renovation $100,000 $1,660,000 $400,000 - - - $2,060,000 4758 1 Magee Park Building Restoration $250,000 $550,000 - - - - $550,000 6614 4 Marca Place Drainage Improvements $65,000 - - - - - $0 4613 Citywide Parks Maintenance Program $3,954,056 $1,115,000 $2,073,000 $1,779,000 $3,638,000 $669,000 $9,274,000 4757 2 Police and Fire HQ Parking Lot and
Exterior Improvements $440,000 $980,000 - - - - $980,000 6088 4 Rancho Santa Fe Trail Slope
Improvements $350,000 - - - - - $0
6079 Citywide Roadway Improvements - Coastal
Area Analysis and Implementation $247,005 $360,000 - - - - $360,000 4738 1 Senior Center Repairs and Roof
Replacement $3,158,000 - - - - - $0
4754 1 Senior Center Security Fencing $300,000 - - - - - $0 4761 2 Synthetic Turf Replacement - Alga
Norte $75,000 $3,285,000 - - - - $3,285,000
4762 2 Synthetic Turf Replacement - Aviara $68,500 $2,280,000 - - - - $2,280,000 4763 1 Synthetic Turf Replacement - Pine $2,320,000 - - - - - $0 4614 3 Synthetic Turf Replacement -
Poinsettia $2,200,000 - - - - - $0
6003 Citywide Traffic Monitoring Program $2,225,415 $100,000 $100,000 $100,000 $100,000 $100,000 $500,000 Annual Allocation
6049 Citywide ADA Improvement Program $4,445,000 $1,058,000 $175,000 $618,000 $215,000 $645,000 $2,711,000 6066 Citywide Bridge Preventative Maintenance
Program $5,020,844 $600,000 $1,418,000 $623,000 $1,535,000 $773,000 $4,949,000 6619 1 Buena Vista Creek Channel
Maintenance at El Camino Real $1,768,000 - $4,600,000 $830,000 - - $5,430,000 6608 1 Citywide Drainage Improvement
Program $18,372,094 $3,220,000 $700,000 $3,938,000 $830,000 $4,245,000 $12,933,000

MAINTENANCE PROJECTS
New projects in italics
June 16, 2026
Item #6 Page 46 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

MAINTENANCE PROJECTS
New projects in italics
4769 Citywide Citywide Facility Arc Flash and
Thermal Imaging Safety Program $100,000 $60,000 $60,000 $60,000 $60,000 - $240,000 6092 Citywide Citywide Street Lighting Program $150,000 - - - - - $0 6093 Citywide Citywide Thermoplastic Pavement
Markings $350,000 - $150,000 $150,000 $150,000 $150,000 $600,000 6013 Citywide Concrete Repair/Replacement
Program $6,810,000 $915,000 $961,000 $1,013,000 $1,061,000 $1,061,000 $5,011,000 6624 1 Headwall Improvement Program $1,155,000 $415,000 $485,000 $555,000 $625,000 $635,000 $2,715,000 5049 2 Lake Calavera Reservoir Maintenance $755,001 $38,000 $50,000 $50,000 $190,000 $35,000 $363,000 4723 Citywide Miscellaneous City Building
Improvements $2,315,000 $351,000 $150,000 $150,000 $150,000 $150,000 $951,000 6052 Citywide Parking Lot Maintenance Program $2,430,000 $1,600,000 $175,000 $850,000 $175,000 $1,175,000 $3,975,000 6001 Citywide Pavement Management Program $77,894,889 $14,388,000 $11,493,000 $12,512,000 $13,222,000 $14,255,000 $65,870,000 6037 Citywide Retroreflectivity Sign Replacement
Program $1,220,000 - $120,000 $120,000 $120,000 $120,000 $480,000 6002 Citywide Sidewalk/Street Construction Program $4,788,000 $150,000 $3,250,000 $200,000 $900,000 $235,000 $4,735,000 6620 Citywide Storm Drain Condition Assessment $1,440,000 - $350,000 $400,000 $455,000 $500,000 $1,705,000 6607 Citywide Storm Drain System Rehab and Repair
Program $10,512,360 $800,000 $5,000,000 $610,000 $4,735,000 $755,000 $11,900,000 6062 Citywide Street Lighting Replacement Program $3,644,269 - - - - - $0 Total $42,290,000 $41,814,000 $26,298,000 $29,391,000 $25,583,000 June 16, 2026
Item #6 Page 47 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM
Project
ID District Type Project Name Prior
Appropriation
Requested
2026-27
Estimated
2027-28
Estimated
2028-29
Estimated
2029-30
Estimated
2030-31
Estimated
5-Year Total
6090 2 Cannon Road / Sage Creek Road
Rehab $155,000 - - - - - $0
4747 2 Fleet Fuel Island Upgrade $5,662,262 - - - - - $0 5050 3 Normally Closed Valve (Install
Motorized Valve) $1,966,000 ($300,000) - - - - ($300,000) 6611 1 Park Drive Street and Drainage
Improvement $5,082,439 $200,000 - - - - $200,000
5045 3 Poinsettia Ln - Cassia Rd to Skimmer
Ct (Reimbursement Agreement)
$600,000 ($207,394) - - - - ($207,394)
4715 2 Police and Fire Headquarters
Renovation $27,733,879 - - - - - $0
4611 4 Stagecoach Community Park
Community Gardens $645,000 - - - - - $0
4091 2 Temporary Fire Station 7 $2,022,000 - - - - - $0 6107 2 Trieste Slope Repair Project $3,770,600 - - - - - $0 Total ($307,394) $0 $0 $0 $0
Project
ID District Type Project Name Prior
Appropriation
Requested
2026-27
Estimated
2027-28
Estimated
2028-29
Estimated
2029-30
Estimated
2030-31
Estimated
5-Year Total
4756 2 Alga Norte Settlement Agreement $1,983,192 - - - - - $0 3649 2 Aviara Reimbursement Agreement $238,000 - - - - - $0 201915 2,3 CFD#1 Administration - $110,000 $110,000 $110,000 $110,000 $110,000 $550,000 PA04 Citywide Loan Repay - Park-in-Lieu NE to Public
Facility Fee Fund - - - - - - $0
PA02 Citywide Loan Repay - Park-in-Lieu SW to
Public Facility Fee Fund - - - - - - $0
PA03 Citywide Loan Repay - Sewer Conn to Sewer
Repl - $198,000 $205,000 $212,000 $220,000 $227,000 $1,062,000 4755 1 New Village Arts Tenant
Improvements $613,000 - - - - - $0
4083 Citywide Open Space and Trail Acquisition
(Prop C) $4,015,000 - - - - - $0
PA07 Citywide Recycled Replacement to Recycled
Connection - - - - - - $0
4743 2 Safety Training Center Settlement $1,156,995 - - - - - $0 PA05 Citywide Traffic Impact Fee Funds to CFD #1 - $90,000 $90,000 $90,000 $90,000 $90,000 $450,000 Total $398,000 $405,000 $412,000 $420,000 $427,000

PROJECT ACCOUNTING
New projects in italics

SUBSTANTIALLY COMPLETE (CLOSEOUT) PROJECTS
June 16, 2026
Item #6 Page 48 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM
Project
ID District Type Project Name Prior
Appropriation
Requested
2026-27
Estimated
2027-28
Estimated
2028-29
Estimated
2029-30
Estimated
2030-31
Estimated
5-Year Total
6629 2 ▼ Agua Hedionda Creek Maintenance $973,000 ($588,979) - - - - ($588,979) 6004 2,3 ▲ Avenida Encinas Coastal Rail Trail
and Pedestrian Improvements $1,776,000 - - - - - $0
6619 1 ▼ Buena Vista Creek Channel
Maintenance at El Camino Real $1,250,000 ($784,165) - - - - ($784,165) 4746 2 ▲ Calavera Hills Community Center
Refurbishment $1,985,000 ($543,085) - - - - ($543,085)
4601 2 ▲ Calavera Hills Community Park
Gateway Improvements $1,407,850 ($18,033) - - - - ($18,033) 6097 1 ▲ Carlsbad Boulevard Pedestrian
Improvement Project $1,647,488 ($298,231) - - - - ($298,231) 5054 2 ▲ Lake Calavera Outlet
Improvements $1,436,001 ($174,154) - - - - ($174,154)
4752 2 ▲ Las Palmas Roof Replacement $630,000 ($85,561) - - - - ($85,561) 4722 2 ▼ Maerkle Reservoir Solar Feasibility
Study $518,170 ($497,582) - - - - ($497,582)
5055 2 ▲ Palomar Airport Waterline
Realignment $2,333,000 ($439,150) - - - - ($439,150)
4608 3 ▲ Poinsettia Community Park - Phase
4 - Dog Park $2,838,140 ($18,670) - - - - ($18,670)
5061 2 ▼ Rancho Carlsbad Groundwater
Supply - - - - - - $0
5208 Citywide ▲ Recycled Water Phase 3 - Pipelines $19,150,221 ($1,358,549) - - - - ($1,358,549) 5210 3 ▲ Recycled Water Phase 3 - Reservoir $7,033,000 ($166,130) - - - - ($166,130) 5044 Citywide ▼ San Luis Rey Mission Basin
Groundwater Supply - - - - - - $0
4753 3 ▲ Schulman Auditorium and Cannon
Art Gallery $2,820,000 ($118,530) - - - - ($118,530)
4742 4 ▲ Stagecoach Park Synthetic Turf
Replacement $2,696,000 ($991,763) - - - - ($991,763)
6636 2,3,4 ▲ Traffic Signal Right Turn Overlaps $150,000 ($133,783) - - - - ($133,783) 3492 2 ▲ Vista Carlsbad Interceptor - Agua
Hedionda LS & Forcemain VC12-VC13 $33,229,776 ($512,684) - - - - ($512,684) Total ($6,729,049) $0 $0 $0 $0

PROGRAM ADJUSTMENTS
▲ Completed, project account closed △ Combined, project scope incorporated into other existing projects ▼ Cancelled, project no longer warranted June 16, 2026
Item #6 Page 49 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM
Fiscal Year 2026-27 2027-28 2028-29 2029-30 2030-31 Estimated 5-Year Total
Requested Appropriation $ 59,069,184 $ 104,075,000 $ 85,292,000 $ 106,164,000 $ 68,157,000 $ 422,757,184 Estimated Future Costs $ 27,624,000 $ 45,988,000 $ 30,846,000 $ 3,190,000 $ 3,755,000 $ 111,403,000 Total: Requested Appropriation +
Future Costs $ 86,693,184 $ 150,063,000 $ 116,138,000 $ 109,354,000 $ 71,912,000 $ 534,160,184

REQUESTED APPROPRIATION SUMMARY
Requested Appropriation does not include construction amounts for Strategic Plan and Critical Need projects. It does include full amounts for Maintenance and Enterprise projects and any program adjustments as shown.

June 16, 2026
Item #6 Page 50 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 Att achment C
Adopted Adopted Adopted Final* Preliminary
Budget Budget Budget Budget Budget
Department 2023-24 2024-25 2025-26 2025-26 2026-27
City Attorney 8.00 8.00 8.00 8.00 8.00
City Clerk Services 7.00 6.00 7.00 7.00 7.00
City Council 2.00 1.00 1.00 1.00 1.00
City Manager 7.00 6.00 6.00 6.00 6.00
City Treasurer 1.00 1.00 1.00 1.00 1.00
Communication & Engagement 9.00 9.00 8.00 8.00 8.00
Administrative Services - Administration 3.00 3.00 3.00 3.00 3.00 Economic Development 9.00 2.00 2.00 2.00 2.00
Finance 26.00 26.00 27.00 27.00 27.00
Human Resources 18.00 17.00 18.00 18.00 18.00
Information Technology 43.00 48.00 48.00 48.00 48.00
Community Services - Administration 2.00 2.00 2.00 2.00 2.00 Community Development 52.00 51.00 51.00 51.00 51.00
Housing & Homeless Services 16.00 16.00 16.00 16.00 16.00 Library & Cultural Arts 53.00 51.00 51.00 51.00 51.00
Parks & Recreation 59.00 58.00 58.00 58.00 59.00
Fire 124.00 124.00 124.00 124.00 124.00
Police 187.00 187.00 193.00 199.00 199.00
Public Works - Administration 6.00 6.00 5.70 5.70 5.50
Construction Management & Inspection 15.00 15.00 15.00 15.00 15.00 Environmental Sustainability 17.50 16.50 17.00 17.00 17.00 Fleet & Facilities 35.95 35.95 37.20 37.20 37.20
Transportation 43.80 43.80 43.80 43.80 43.80
Utilities 63.50 63.50 62.30 62.30 62.50
Total Full-Time Personnel 807.75 796.75 805.00 811.00 812.00 Hourly Full-Time Equivalent Personnel 167.84 166.79 168.84 168.84 173.42 Total 975.59 963.54 973.84 979.84 985.42
*The ending budget for 2025-26 takes into account full-time personnel changes approved mid-year for the addition of (6.0) FTE in the Police Department.

June 16, 2026
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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 Att achment D

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 2026-27 2027-28 2028-29 2029-30 2030-31 Funding Technology Investment Capital Fund
Aerial Topographic Imagery BCDDM -$ -$ 50,000$ -$ -$ -$ 50,000$ After Hours Dispatch Solution PSSC - - 100,000 - - - 100,000 Audio Visual Upgrades FVCEC 925,000 100,000 100,000 100,000 100,000 100,000 1,425,000 Automated License Plate Reader Replacement PSSC - 500,000 500,000 - - - 1,000,000 Business Process Automation BCDDM 300,000 - - - - - 300,000 Civic Engagement with Open Data EAT 198,000 - - - - - 198,000 Computer Aided Dispatch (CAD) PSSC 1,580,000 - - - - - 1,580,000 Core Systems Modernization PCDT 8,400,000 3,600,000 - - - - 12,000,000 Core Systems Modernization Phase II PCDT - - 500,000 - - - 500,000 Cyber Security Program Development PSSC 750,000 100,000 100,000 100,000 100,000 100,000 1,250,000 Data Governance and Operational Analytics BCDDM 423,000 - - - - - 423,000 Digital Information Network PCDT 6,275,584 250,000 - - - - 6,525,584 Drone as a First Responder PSSC - - 200,000 - - - 200,000 Early Literacy Interactive Technology EAT 78,000 - - - - - 78,000 Expansion of Yardi EAT 30,000 - - - - - 30,000 Facility Monitoring and Analytics BCDDM 300,000 - - - - - 300,000 Facility Security Master Plan PSSC 200,000 721,000 311,000 438,000 369,000 - 2,039,000 Integrated Library Solution PCDT - - 1,000, 000 - - - 1,000,000 Interactive Application Navigator EAT - - 60,000 - - - 60,000 Intersection Traffic Detection Upgrades PCDT - 500,000 500,000 500,000 - - 1,500,000 Live 911 PSSC 66,380 - - - - - 66,380 Online Permitting/Electronic Reviews (E-Reviews) EAT 645,000 - - - - - 645,000 Online Services ADA Compliance EAT - 100,000 - - - - 100,000 Payment Card Industry (PCI) Compliance PCDT 62,000 - - - - - 62,000 Phone System Migration PCDT - - 200,000 - - - 200,000 Police In-car Video PSSC - - 350,000 - - - 350,000 Police Records Management System PSSC 1,750,000 - - - - - 1,750,000 Real Time Crime Center Infrastructure PSSC - - 200,000 - - - 200,000 Record Digitization EAT 100,000 - - - - - 100,000 RFID Replacement PCDT 600,000 - - - - - 600,000 Virtual Reality (VR) Training PSSC 75,000 - - - - - 75,000 Website Migration PCDT - - 75,000 - - - 75,000 Website Redesign EAT 50,000 - - - - - 50,000 Technology Investment Capital Fund Total 22,807,964 5,871,000 4,246,000 1,138,000 569,000 200,000 34,831,964 Information Technology Replacement Fund
Annual Hardware and Infrastructure Replacement PSSC 1,390,602 688,311 1,200,000 1,200,000 800,000 1, 200,000 6,478,913 Staff Citywide Printer Replacement PCDT - - - - 800,000 - 800,000 Information Technology Replacement Fund Total 1,390,602 688,311 1,200,000 1,200,000 1,600,000 1,200,000 7,278,913 24,198,566$ 6,559,311$ 5,446,000$ 2,338,000$ 2,169,000$ 1,400,000$ 42,110,877$ 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
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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 Att achment E
PLANNED MAJOR CAPITAL OUTLAY ITEMS GREATER THAN $250,000 FISCAL YEAR 2026-27
Department Item description Quantity Total cost
Fleet Replacement Fire: Ambulance 1 349,800$
Fire: Ambulance 1 349,800$
Fire: Ambulance with no body remount 1 400,000$
Fire: Brush truck 1 668,255
Public Works: 5yd dump truck 1 300,000
Public Works: 10yd dump truck 1 500,000
Fleet Replacement subtotal 6 2,567,855$
Capital outlay greater than $250,000 total 6 2,567,855$ June 16, 2026
Item #6 Page 53 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 Exhibit 2
RESOLUTION NO. 1807 .

A RE

SOLUTION 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 202 6-27 AND ESTABLISHING

CONTROLS ON CHANGES IN APPROPRIATIONS FOR BUDGET FUNDS
WHE
REAS, 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) 2026-27 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.

3. That certain documents now on file in the Office of the City Clerk of the City of Carlsbad, entitled “Fiscal Year 2026-27 Preliminary Operating Budget, Strategic Digital Transformation Investment Program and Capital Improvement Program” presented at the Joint Special Meeting on May 19 , 2026 as Exhibit 6 to Item No. 4 , 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 2026-27, along with any adjustments, if any, determined by the Board of Directors as set forth in the minutes of this Joint Special Meeting on June 16, 2026.

4. That the amounts reflected as estimated revenues for FY 202 6-27 as shown in Attachment A are adopted as the budgeted revenues for FY 2026-27.

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5. That the amounts designated as FY 2026-27 Budget request in Attachments A and B to this Exhibit 2 and the City of Carlsbad’s estimated share of the FY 2026-27 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.

6. 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.

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 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 M anager 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 M anager 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.

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8. That all appropriations for outstanding encumbrances as of June 30, 2026, are continued into FY 2026-27 for such contracts and obligations.

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 for Capital Improvement Projects remaining unexpended as of June 30, 2026, are appropriated to FY 2026-27 in their respective project budgets.

11. That all appropriations in the Strategic Digital Transformation Investment Program remaining unexpended a s of June 30, 202 6, are appropriated to FY 2026-27 in their respective project budgets.

12. That all appropriations in the Operating Budget remaining unexpended as of June 30, 2026, related to grant awards received or expected for projects that are continuing into the next fiscal year are appropriated to FY 2026-27.

PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of t he 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 16th day of June, 2026, by the following vote, to wit:

AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.

NAYS: None.

ABSTAIN: None.

ABSENT: None.
_______
_______________________________
KEITH BLACKBURN, President
_______
_______________________________
SHERRY FREISINGER, Secretary
(SEAL)
June 16, 2026
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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

Att achment A
CA

RLSBAD MUNICIPAL WATER DISTRICT CAPITAL IMPROVEMENT PROJECTS PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 Y EAR 5 YEAR 6-15
YEARS 2026-27 2027-28 2028-29 2029-30 2030-2031 2032-41 BEGINNING FUND BALANCE N/A 38,211,618 40,512,499 32,188,051 33,184,291 26,699,011 27,601,398

REVENUES
Developer Fees 4,311,487 2,099,552 2,816,240 1,839,721 1,632,387 20,263,790 Total Revenues N/A 4,311,487 2,099,552 2,816,240 1,839,721 1,632,387 20,263,790

CAPITAL PROJECTS
College Boulevard - Cannon Road To Badger Lane (375 Zone) 278,383 - 1,802,000 - - - - College Boulevard - Cannon Road To Badger Lane (490 Zone) 312,600 - 1,802,000 - - - - Crestview Drive Transmission Main 185,000 25,000 - 740,000 - - - Harding Street Sewer and Utility Improvements - 500,000 - - - - - Hydroelectric Generation at Water Facilities 500,000 - - - - - - Limited Access Pipeline Relocation Program 1,622,000 93,000 - 80,000 - 230,000 - Maerkle Reservoir Transmission Main - 150,000 - - 1,825,000 - - Palomar Airport Waterline Realignment - - - - - - - Poinsettia Lane - Cassia Road to Skimmer Court (Reimbursement Agreement) 600,000 (207,394) - - - - - Pressure Reducing Station Program 599,999 - 320,000 - - - - Rancho Carlsbad Groundwater Supply - - - - - - -
San Luis Rey Mission Basin Groundwater Supply - - - - - - - SCADA Improvements 80,000 - - - - - -
Water Modeling 375,000 - - - - - -
Water System Improvements - 500,000 6,000,000 500,000 6,000,000 - - Water System Rehabilitation and Replacement 200,000 950,000 500,000 500,000 500,000 500,000 5,000,000 Total Project Expenditures 4,752,984 2,010,606 10,424,000 1,820,000 8,325,000 730,000 5,000,000 ENDING FUND BALANCE N/A 40,512,499 32,188,051 33, 184,291 26,699,011 27,601,398 42,865,188

WATER CONNECTION - POTABLE
PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-15
YEARS 2026-27 2027-28 2028-29 2029-30 2030-2031 2032-41 BEGINNING FUND BALANCE N/A 19,952,139 14,672,206 170,098 (5,989,109) (16,929,883) (20,438,024)

REVENUES
Transfer from Water Operating Fund 1,424,490 832,892 695,792 5,823,226 5,806,859 57,316,551 Total Revenues N/A 1,424,490 832,892 695,792 5,823,226 5,806,859 57,316,551

CAPITAL PROJECTS
Carlsbad Boulevard Waterline Replacement at Terramar 6,480,105 - - - - - - Carlsbad Municipal Water District Building and Site Improvements 400,000 300,000 2,250,000 - - - - Carlsbad Water Recycling Facility (Encina Capital Projects) 599,943 - - - - - - Cathodic Protection Program 2,366,702 100,000 600,000 600,000 600,000 600,000 5,000,000 Crestview Drive Transmission Main - - - - - - -
El Camino Real Widening - Arenal Road to La Costa Avenue - - - - - - - Harding Street Sewer and Utility Improvements - 500,000 - - - - - Limited Access Pipeline Relocation Program 6,129,000 372,000 - 540,000 - 3,000,000 - Maerkle Facility Improvements 4,091,200 - - - - - - Maerkle Reservoir Solar Project 518,170 (497,582) - - - - - Maerkle Reservoir Transmission Main 195,001 450,000 - - 5,475,000 - - Normally Closed Valve (Install Motorized Valve) 1,966,002 (300,000) - - - - - Orion Center 184,654 - - - - - -
Palomar Airport Waterline Realignment 2,332,999 (439,150) - - - - - Pressure Reducing Station Program 6,431,037 1,200,000 6,000,000 500,000 500,000 500,000 5,000,000 Rancho Carlsbad Groundwater Supply - - - - - - -
Recycled Water Phase 3 - Pipelines 2,147,778 (6,714) - - - - - Recycled Water Phase 3 - Reservoir 180,003 (91,130) - - - - - Reservoir Repair and Maintenance Program 8,185,001 4,000,000 500,000 500, 000 500,000 500,000 20,000,000 San Luis Rey Mission Basin Groundwater Supply - - - - - - - Santa Fe II Inlet Pipeline 529,650 32,000 - - 378,000 - 2,182,000 Santa Fe II Reservoir Site Electrical Improvements 333,581 - - - - - - SCADA Improvements 10,077,599 - - - - - - Tri-Agency Water Transmission Pipeline Replacement 2,608,973 - 553,000 - 4,596,000 - 5,937,000 Valley and Magnolia Complete Streets 71,001 - 717,000 - - - - Water Infrastructure Condition Assessment Program 3,440,000 - 450,000 450,000 450,000 450,000 4,730,000 Water System Rehabilitation and Replacement 22,058,372 - 3,180,000 3,180,000 3,180,000 3,180,000 43,428,000 Water Valve Repair/Replacement Program 11,366,999 1,085,000 1,085,000 1,085,000 1,085,000 1,085,000 11,075,000 Total Project Expenditures 92,693,770 6,704,424 15,335,000 6,855,000 16,764,000 9,315,000 97,352,000 ENDING FUND BALANCE N/A 14,672,206 170,098 (5,989,109) (16,929,883) (20,438,024) (60,473,473)

WATER REPLACEMENT - POTABLE
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Item #6 Page 57 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6- 15
YEARS 2026-27 2027-28 2028-29 2029-30 2030-2031 2032-41 BEGINNING FUND BALANCE N/A (1,398,836) 307,999 7,999 7,999 7,999 7,999

REVENUES
Recycled Water Loans and Grants - - - - - - Total Revenues N/A - - - - - -

CAPITAL PROJECTS
C Tank Access Road and Electrical Improvements 50,000 - 300,000 - - - - Carlsbad Water Recycling Facility (Encina Capital Projects) - - - - - - - Carlsbad Water Recycling Facility Improvements 350,000 (280,000) - - - - - Recycled Water Phase 3 - Pipelines 17,002,444 (1,351,835) - - - - - Recycled Water Phase 3 - Reservoir 6,852,996 (75,000) - - - - - Total Project Expenditures 24,255,440 (1,706,835) 300,000 - - - - ENDING FUND BALANCE N/A 307,999 7,999 7,999 7,999 7,999 7,999

WATER CONNECTION - RECYCLED
PRIOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YE AR 6- 15
YEARS 2026-27 2027-28 2028-29 2029-30 2030-2031 2032-41 BEGINNING FUND BALANCE N/A 7,867,315 6,272,816 (391,184) (2,262,184) (4,153,184) (6,059,184)

REVENUES
Transfer from Recycled Water Operating Fund - - - - - - Total Revenues N/A - - - - - -

CAPITAL PROJECTS
C-Tank Access Road Repair and Electrical Improvements 250,000 23,000 1,000,000 - - - - Carlsbad Municipal Water District Building and Site Improvements 159,999 - 900,000 - - - - Carlsbad Water Recycling Facility (Encina Capital Projects) 5,575,711 - - 414,000 434,000 449,000 6,934,000 Carlsbad Water Recycling Facility Improvements - 350,000 3,307,000 - - - - Cathodic Protection Program 200,000 100,000 400,000 400,000 400,000 400,000 1,000,000 D-Site Recycled Water Pump Rehabilitation 300,000 - - - - - - Orion Center 7,013 (1) - - - - - Recycled Water Condition Assessment Program 850,001 53,000 53,000 53,000 53,000 53,000 590,000 Recycled Water System Rehabilitation and Replacement 1,050,000 371,000 371,000 371,000 371,000 371,000 5,060,000 Recycled Water Valve and Appurtenance Replacement Program 380,000 132,500 133,000 133,000 133,000 133,000 1,363,000 Transfer to Recycled Connection Capital Fund - - - - - - - Reservoir Maintenance and Repair Program 450,000 565,000 500,000 500,000 500,000 500,000 10,000,000 SCADA Improvements 2,394,399 - - - - - - Total Project Expenditures 11,617,123 1,594,499 6,664,000 1,871,000 1,891,000 1,906,000 24,947,000 ENDING FUND BALANCE N/A 6,272,816 (391,184) (2, 262,184) (4,153,184) (6,059,184) (31,006,184)

WATER REPLACEMENT - RECYCLED
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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 Att achment B
PUBLIC WORKS |
UTILITIES: POTABLE WATER OPERATIONS

Account: 5016310 Fund: Enterprise
ABOUT
To ensure safe, high-quality drinking water to Carlsbad Municipal Water District customers, the district provides ongoing operation and maintenance to the following: nine storage reservoirs, 457 miles of pipeline, 17 pressure zones, 74 pressure regulating stations, three pumping stations, approximately 14,300 valves, 4,500 fire hydrants and 30,265 potable meters. The district purchases potable water from its wholesale water provider, the San Diego County Water Authority, including desalinated water from the Carlsbad Desalination Plant. The district 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
• Deliver reliable, safe drinking water and fire flow demand • Operate and maintain reservoirs, pressure regulating stations, pump stations, transmission and distribution pipelines, valves, meters and other appurtenances • Comply with all water-related health, safety and environmental regulations including state and federal drinking water standards for water quality sampling and reporting RE

CENT ACCOMPLISHMENTS
• Protected the potable water supply by testing approximately 285 city backflow devices and conducting 160 cross-connection tests
• Completed a construction project to replace broken or malfunctioning valves at 26 operationally critical locations to control flow and minimize disruption of service during shutdowns 2023-24
Actual
2024-25
Actual
2025-26
Budget
2026-27
Budget
Personnel Services
Salaries & Wages 2,980,700$ 3,215,944$ 3,620,599$ 3,715,633$ Retirement Benefits 692,247 799,171 907,195 948,683
Health Insurance 610,494 641,800 546,349 796,233
Other Personnel Expenses 1,085,892 778,144 207,786 221,310 Personnel Services Subtotal 5,369,333 5,435,059 5,281,929 5,681,859 Operating Expenses
Professional & Contract Services 7,787,093 9,056,018 11,031,480 12,236,017 Supplies & Materials 29,682,010 32,751,718 38,697,334 42,271,093 Repair & Maintenance 160,487 224,316 346,400 372,400 Interdepartmental Charges 3,766,152 3,554,643 3,902,097 3,669,401 Other Operating Expenses 5,166,700 5,466,975 6,641,874 332,563 Capital Outlay 68,411 38,983 3,600 -
Operating Expenses Subtotal 46,630,853 51,092,653 60,622,785 58,881,474 TOTAL EXPENDITURES 52,000,186$ 56,527,712$ 65,904,714$ 64,563,333$ Full Time Positions 31.05 31.15 30.90 30.60
Hourly/FTE Positions 0.00 0.00 0.00 0.00
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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 • Completed construction of motorized valve installations at the Maerkle Reservoir site and power and telemetry connection to the SCADA system at El Fuerte Street at Rancho Pancho • Completed construction of a replacement of a potable water distribution main beneath the North County Transit District rail corridor, north of Avenida Encinas in the Ponto area • Completed construction of the Carlsbad Boulevard Water and Sewer Improvements at Terramar Project • Conducted condition assessments on equipment in three potable water pump stations • Completed an update of the 2020 Risk and Resilience Assessment as required by the Environmental Protection Agency
• Submitted CMWD Cross-Connection Control Plan, a comprehensive contamination prevention plan of drinking water from non-potable sources
• Updated the 2020 Urban Water Management Plan per state regulations

GOALS
• Implement new regulations for water use efficiency standards issued by the Department of Water Resources and the State Water Resources Control Board
• Design and bid for Ellery tank rehabilitation
• Complete design for PRS station upgrade and begin construction improvements at one site • Update the Urban Water Management Plan
• Update the 2019 Utilities Asset Management Master Plan with potable water infrastructure rehabilitation and replacement needs and budget
• Update Water Master Plan and Asset Management Master Plan and begin environmental impact reports for each of these, master plans
• 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

SIGNIFICANT CHANGES TO THIS YEAR’S BUDGET
The budget to purchase potable water for delivery in the district’s service area increased by $4.2 million to account for San Diego County Water Authority anticipated rate increases.

Performance Measure
FY 2025
Actual
FY 2026
Estimated
FY 2027
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
Percentage of annual
drinking water quality
standards met
100% 100% 100% 100% Quality of
Life & Safety
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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 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. The district delivers recycled water in compliance with State of California Title 22 quality standards for irrigation and industrial uses. The district’s cross-connection control and backflow program ensures a safe supply of drinking water, preventing cross -contamination of recycled and potable systems, in accordance with federal and state regulations.

Recycled water is not subject to state water conservation requirements. The district established a recycled water asset management plan to reduce operating costs associated with utility assets while continuing to deliver high levels of service at acceptable levels of risk. Operation and maintenance of the district’s recycle water system includes four storage tanks with pump stations, and pressure regulating stations, six pressure zones, and approximately 97 miles of pipelines, over 1,050 valves and 1,017 meters. The district also purchases and delivers recycled water from the Vallecitos Water District’s Meadowlark Water Reclamation Facility. 2023-24
Actual
2024-25
Actual
2025-26
Budget
2026-27
Budget
Personnel Services
Salaries & Wages 1,373,512$ 1,251,049$ 1,369,482$ 1,455,088$ Retirement Benefits 264,779 313,954 340,535 362,864 Health Insurance 156,230 162,648 187,006 187,233 Other Personnel Expenses 55,197 63,819 76,310 79,050 Personnel Services Subtotal 1,849,718 1,791,470 1,973,333 2,084,235 Operating Expenses
Professional & Contract Services 1,890,789 2,150,930 2,500,028 2,841,492 Supplies & Materials 2,836,421 1,796,356 4,170,606 4,374,506 Repair & Maintenance 14,015 6,161 26,743 26,743 Interdepartmental Charges 1,168,003 994,484 974,350 864,835 Other Operating Expenses 410,890 766,090 18,923,166 2,246,129 Capital Outlay 15,234 - 1,750 1,750 Operating Expenses Subtotal 6,335,352 5,714,021 26,596,643 10,355,455 TOTAL EXPENDITURES 8,185,070$ 7,505,491$ 28,569,976$ 12,439,690$ Full Time Positions 10.85 11.45 10.90 10.45
Hourly/FTE Positions 0.50 0.50 0.50 0.50
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SERVICES
• Operate and maintain infrastructure, including the Carlsbad Water Recycling Facility, reservoirs, pressure regulating stations, pump stations, pipelines, valves and meters • Wastewater must be treated to Title 22 disinfected tertiary effluent standards to deliver 1.3 billion gallons of recycled water for irrigation and industrial purposes • 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 needed

RECENT ACCOMPLISHMENTS
• Produced and delivered 100% of recycled water for CMWD customers as the Vallecitos Water District’s Meadowlark Water Reclamation Facility was under construction for fiscal year 2026 • 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 the electrical panel design for the recycled water portion of the Supervisory Control and Data Acquisition system replacement project
• Submitted CMWD Cross-Connection Control Plan, a comprehensive contamination prevention plan of drinking water from non-potable sources, in accordance with the state’s Cross-Connection Control Policy Handbook

GOALS
• 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
• Maintain recycled water costs at or below 75% of potable water irrigation cost to encourage the use of recycled water
• Begin a business case analysis to expand the existing CWRF or keep purchasing recycled water from the Vallecitos Water District
• Negotiate a new agreement for purchase of recycled water from the Vallecitos Water District

SIGNIFICANT CHANGES TO THIS YEAR’S BUDGET
The budget includes an increase of approximately $434,000 to support the cost increase in production of recycled water at CWRF and anticipated increase under the new draft agreement between the district and the Vallecitos Water District to purchase recycled water.

Performance Measure
FY 2025
Actual
FY 2026
Estimated
FY 2027
Projected Benchmark
Related Strategic
Plan Goal
Pipeline breaks per 100
miles of pipe 1.03 < 3.4 < 3.4 3.4-19.4 Quality of
Life & Safety
Cost of recycled water as
a percent of potable
water cost
73% 73% 75% < 75%
Organizational
Excellence &
Fiscal Health
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WASTEWATER

AUTHORITY
BUDGET
Fiscal
www.encinajpa.com
760-438-3941
2 0 2 6 - 2 7

OPERATING &

CAPITAL
Encina Wastewater Authority
6200 Avenida Encinas
Carlsbad, CA 92011
Year
Attachment C
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PROTECTING PUBLIC AND

ENVIRONMENTAL HEALTH

FOR GENERATIONS TO COME
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PROUDLY SERVING
City of Carlsbad
City of Vista
Buena Sanitation District
Vallecitos Water District
City of Encinitas
Leucadia Wastewater District

OUR VISION
To achieve excellence in wastewater treatment and resource recovery for the communities we serve.

OUR MISSION
To provide reliable, resilient and sustainable wastewater services to North San Diego County while optimizing the use of renewable resources.

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BOARD OF DIRECTORS
CHAIR

VICE-CHAIR
CALENDAR YEAR 2026
Kevin Shin
Dan O’Donnell
Jim Hernandez

CITY OF VISTA &

BUENA SANITATION DISTRICT

LEUCADIA WASTEWATER DISTRICT LEUCADIA WASTEWATER DISTRICT

CITY OF VISTA &

BUENA SANITATION DISTRICT

CITY OF CARLSBAD CITY OF CARLSBAD

VALLECITOS WATER DISTRICT VALLECITOS WATER DISTRICT

CITY OF ENCINITAS CITY OF ENCINITAS
John Franklin
Keith Blackburn
Bruce Ehlers
Rolando Saldana
Kevin Shin
Dan O’Donnell
Jim Pennock
Joy Lyndes
Elaine Sullivan
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EXECUTIVE LEADERSHIP TEAM
General Manager
Assistant General Manager
Treasurer | Auditor
Scott McClelland, PE, BCEE, MBA
Jennifer Sabine
Director of Environmental Compliance
Director of Operations Director of Technical Services
Director of Finance
General Counsel
Nicholaus Norvell
Octavio Navarrete
Alicia Appel
Dimitris Papachristoforou
Aaron Beanan
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TABLE OF CONTENTS

INTRODUCTION
Letter of Transmittal ............................................................................................................................................................................... 1 About Encina ........................................................................................................................................................................................... 7 Organization Chart ................................................................................................................................................................................ 11 Position List ........................................................................................................................................................................................... 13 Personnel Expense Summary by Account & by Program ...................................................................................................................... 15

OPERATING PROGRAMS
Operating Budget – Revenue and Expense Summary ........................................................................................................................... 19 Operating Budget – Expense Summary ................................................................................................................................................. 20 Operating Budget – Revenue Summary ................................................................................................................................................ 21 Encina Water Pollution Control Facility – Overview .............................................................................................................................. 23 Encina Water Pollution Control Facility – Operating Expense Summary............................................................................................... 25 Environmental Compliance and Regional Source Control – Overview .................................................................................................. 27 Environmental Compliance and Regional Source Control – Operating Expense Summary ................................................................... 29 Agua Hedionda Lift Station – Overview ................................................................................................................................................. 31 Agua Hedionda Lift Station – Operating Expense Summary ................................................................................................................. 33 Buena Creek Pump Station – Overview ................................................................................................................................................. 35 Buena Creek Pump Station – Operating Expense Summary ................................................................................................................. 37 Buena Vista Pump Station – Overview .................................................................................................................................................. 39 Buena Vista Pump Station – Operating Expense Summary ................................................................................................................... 41 Carlsbad Water Recycling Facility – Overview ....................................................................................................................................... 43 Carlsbad Water Recycling Facility – Operating Expense Summary ....................................................................................................... 45 Raceway Basin Pump Station – Overview ............................................................................................................................................ 47 Raceway Basin Pump Station – Operating Expense Summary .............................................................................................................. 49 Internal Service Funds – Overview ........................................................................................................................................................ 51 Internal Service Funds – Operating Expense Summary ......................................................................................................................... 53

CAPITAL PROGRAMS
Capital Program ……………………………………………………………………………………………………………………………………………………………………………….57 Summary of Capital Expenses ............................................................................................................................................................... 59 Encina Water Pollution Control Facility – Capital Improvements ......................................................................................................... 60 Encina Water Pollution Control Facility – Planned Asset Rehabilitation & Replacement ..................................................................... 61 Encina Water Pollution Control Facility – Capital Acquisitions.............................................................................................................. 63 Remote Facilities – Acquisitions & Rehabilitation ................................................................................................................................. 64 Encina Water Pollution Control Facility – Capital Improvements, 5 Year Detail ................................................................................... 66 Encina Water Pollution Control Facility – Capital Improvements, Estimated Carry Forward ................................................................ 69 Long-Term Capital Financial Plan .......................................................................................................................................................... 73

APPENDIX
Budget Resolutions................................................................................................................................................. 75 June 16, 2026
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INTRODUCTORY

SECTION
Letter of Transmittal
Organizational Chart
Position List
Personnel Expense Summary
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To: Honorable Chair and Members of the Board of Directors Encina Joint Advisory Committee
Boards and Councils of the Encina Member Agencies
From: Scott McClelland, General Manager
Subject: Transmittal of FY 2026-27 Recommended Operating & Capital Budgets This letter transmits the Encina Wastewater Authority’s (Encina) Recommended Fiscal Year 2026-27 Operating and Capital Budgets. In conformance with the Revised Basic Agreement for Ownership, Operation and Maintenance of the Encina Joint Sewage System, this Recommended Budget estimates the amount of money required to sustainably operate, maintain and administer the Joint System during Fiscal Year 2026-27. It also includes estimates for each Member Agency’s proportionate share of the budget.

Encina’s operations directly support public and environmental health and a North San Diego economy in excess of $20 billion dollars. The economic environment Encina operates in continues to be characterized by elevated volatility and uncertainty.

Cost pressures related to insurance, construction materials, energy, and other critical inputs continue to be influenced by these factors. This budget emphasizes adaptability, sustainability, and long-term resilience. It reflects the deliberate actions of staff to manage near-term cost pressures while advancing strategies and tactical goals that strengthen Encina’s financial and operational position over time, some of which are discussed below. This budget continues the journey to proactively adapt to a volatile environment and creates a roadmap to help ensure Encina protects public and environmental health for generations to come.

As shown in the table below, the Recommended Fiscal Year 2026-27 budget reflects a 3.9% increase over last year’s budget:

The following sections will describe how this budget will allow Encina to continue its mission to provide reliable, resilient and sustainable wastewater services to North San Diego County while optimizing the use of renewable resources.

OPERATING BUDGET OVERVIEW
The FY 2026-27 Operating Budget reflects Encina’s continuing commitment to provide sustainable and fiscally responsible wastewater services to the communities it serves while maximizing the use of alternative and renewable resources. The Recommended FY 2026-27 Operating Budget is comprised of seven (7) operational programs that provide services to the Encina Member Agencies. Each operational program includes direct personnel and non-personnel expenses and related internal service fund (ISF) charges. The Recommended FY 2026-27 Budget reflects management’s strategies and objectives to ensure continued achievement within each of the six (6) Strategic Initiatives identified in the Five-Year Strategic Plan (2024- 2028): Protect Public and Environmental Health; Remain an Employer of Choice; Ensure Administrative Effectiveness; Maintain Infrastructure Reliability & Safeguard Public Assets; Pursue Resource Recovery; and Optimize Operational Performance.

Budget Actual
FY 2024-25
Budget
FY 2025-26
Proposed
FY 2026-27
FY 2025-26 vs
FY 2026-27
% Change
Operating Budget 26,554,395$ 28,699,044$ 29,879,155$ 4.1% Capital Budget 22,439,462$ 24,382,029$ 25,294,979$ 3.7% Total Budget $ 48,993,857 $ 53,081,073 $ 55,174,134 3.9%

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The Recommended FY 2026-27 Operating Budget totals approximately $29.9M for the seven (7) operational programs summarized below:

The operating budget increases appear to be stabilizing after recent years’ impacts due to volatility. While that is true, personnel costs continue to play a factor in the increase due to their share of the budget. As part of Encina’s commitment to an adaptive management approach to staffing, a reorganization was implemented during Fiscal Year 2025–26 to better align resources with current operational needs while maintaining overall headcount. Within the Operating Program, two Operations Manager positions, the Operations Training and Quality Control Specialist position, and an operator position were eliminated. The change associated with the elimination of one Operations Manager is discussed in the General Capital section below.

The elimination of the second Operations Manager position enabled the creation of a new Energy Systems Manager position to support Encina’s evolving energy infrastructure. This role is anticipated to provide oversight of Encina’s existing energy infrastructure and future energy systems, including potential linear generators, battery storage, and a microgrid controller associated with the Cogeneration Low Emission & Augmentation Retrofit (CLEAR) project.

In addition, the elimination of the Operations Training and Quality Control Specialist position allowed for the creation of an Electrical and Instrumentation Technician position. This change reflects Encina’s increasing reliance on automated systems and the need for specialized technical staff to support the operation and maintenance of more complex equipment.

Lastly, the elimination of an Operator position allowed for the creation of an Environmental Compliance Analyst position.

This change reflects Encina’s increasingly complex regulatory requirements, especially in air quality, and the need for specialized technical staff to support the tracking, implementation, and recordkeeping associated with more complex regulations.

The budget also reflects the implementation of year one in the three-year salary and benefit package approved by the Board of Directors in April 2026. Overall, staffing cost increases have moderated. Increases in health benefit costs are partially offset by employee elections. Costs related to CalPERS unfunded accrued liability and Encina’s Pension Policy are included within this budget. The additional discretionary payment budgeted pursuant to the Pension Policy is significantly lower than last year as a result of CalPERS investment performance which resulted in a slightly lower overall unfunded liability payment.

Chemical pricing has stabilized, with Encina’s primary chemical contracts locked in during Spring 2025. The largest chemical contract allows no price increases for three years, while other contracts cap annual increases at 5%. In addition, new Operating Program Actual
FY 2024-25
Budget
FY 2025-26
Proposed
FY 2026-27
FY 2025-26 vs
FY 2026-27
% Change
Encina Water Pollution Control Facility $ 20,939,015 $ 22,431,526 $ 23,312,612 3.9% Environmental Compliance ─ Source Control $ 1,267,812 $ 1,390,729 $ 1,494,089 7.4% Agua Hedionda Lift Station $ 660,728 $ 731,488 $ 716,563 -2.0% Buena Creek Pump Station $ 558,114 $ 702,898 $ 645,654 -8.1% Buena Vista Pump Station $ 862,164 $ 1,038,211 $ 990,228 -4.6% Carlsbad Water Recycling Facility $ 1,995,216 $ 2,075,864 $ 2,402,416 15.7% Raceway Basin Pump Station $ 271,346 $ 328,328 $ 317,593 -3.3% Total Operating Budget $ 26,554,395 $ 28,699,044 $ 29,879,155 4.1% Estimated Other Operating Revenue $ - $ (475,000) $ (490,000) 3.2% Estimated Member Agency Share $ 26,554,395 $ 28,224,044 $ 29,389,155 4.1%

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instrumentation has improved dosing efficiency, reducing ferric usage required to manage organic loading and lowering the associated budget.

Planned Heat Dryer maintenance in the upcoming fiscal year will suspend Class A biosolids production for up to 12 weeks.

The maintenance includes re-cladding the rotary drum to extend the useful life of the Heat Dryer, which has operated continuously for more than 14 years since its installation under the Phase V projects. As a result, biosolids hauling, electricity, natural gas, and polymer operating accounts will be impacted.

Energy continues to impact the operating budget. The commissioning of Digester 4 has increased overall electricity consumption, as the 150 ‑HP mix pump operates continuously. Over the longer term, the CLEAR project currently in development is intended to stabilize energy costs, taking full advantage of on-site resources, and address increasingly stringent air‑quality regulations while maximizing value for Encina and its Member Agencies.

The operating budget also includes funding for a strategic assessment of the South Parcel to evaluate potential monetization opportunities that could generate non ‑rate revenue. This effort is intended to help mitigate upward pressure on future operating costs passed through to Member Agencies and their ratepayers, while maintaining long‑term operational and policy flexibility for Encina.

CAPITAL BUDGET OVERVIEW
The Recommended FY 2026-27 Capital Budget totals approximately $25.3M for the following Encina capital programs summarized below:

Despite a history of strategic planning, capital costs have increased rapidly over the past 4 years driven by the global volatility discussed in previous budgets. While the Recommended FY 2026-27 Capital Budget reflects pressures from several directions including aging infrastructure renewal, solids management capacity due to solids inflow growth, and regulations, it also reflects the opportunity to adapt to a new paradigm, while enhancing operational efficiency and reliability.

Aging Infrastructure Renewal
Facility age and a uniquely corrosive marine environment, given Encina’s coastal location and the nature of the resources Encina manages, are putting significant pressure on infrastructure renewal. The original treatment plant was constructed in 1963 with Phase I and II following in 1971 and 1975 respectively. The first three phases were built between 50 and 62 years ago. Phase III and IV were built in 1988 and 1992, respectively; over 30 years ago. Phase V, the most recent comprehensive expansion, was built in 2006. Based on estimates from July 2025 Encina is responsible for ~$808 million worth of Joint System Assets at the EWPCF. Many of these assets are near or at the end of their useful life. Failure to proactively maintain Encina’s aging infrastructure can lead to process failures resulting in wastewater spills that negatively impact the environment and Capital Program Actual
FY 2024-25
Budget
FY 2025-26
Proposed
FY 2026-27
FY 2025-26 vs
FY 2026-27
% Change
EWPCF – Capital Improvements 16,606,063$ 18,240,000$ 19,165,000$ 5.1% EWPCF – Planned Asset Rehabilitation 1,725,778$ 1,694,000$ 1,656,000$ -2.2% EWPCF – Capital Acquisitions 745,820$ 693,000$ 505,000$ -27.1% Remotes Facilities – Acquisitions & Rehabilitation 1,500,485$ 1,173,500$ 1,162,000$ -1.0% Allocated Personnel Expenses 1,861,316$ 2,581,529$ 2,806,979$ 8.7% Total Capital Budget $ 22,439,462 $ 24,382,029 $ 25,294,979 3.7% Estimated Grant Revenues $ - $ (7,550,000) 0.0% Estimated Member Agency Share $ 22,439,462 $ 24,382,029 $ 17,744,979 -27.2%

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north San Diego County economy. Over the next several years, plant rehabilitation to maintain core services is expected to have a cost order of magnitude of ~$75 million through Fiscal Year 2030-31. This does not include other necessary infrastructure upgrades discussed below.

Solids Management Capacity due to Growth
Growth within the Member Agencies’ service area is also putting pressure on Encina’s solids management capacity. About 63% of the overall 43.31 million gallons per day of solids capacity is currently used which creates three challenges. First, reduced hydraulic detention time of solids in the digesters is near the permit limit of 15 days with one digester out of service.

This permit limit allows for the disposal of Class “B” solids when the heat dryer system does not have adequate capacity to meet demands. The Biosolids Management Plan completed in 2022 identified the need for either increased hydraulic capacity at the digesters or the installation of a second heat dryer system; adding hydraulic capacity was determined to be the least cost alternative as rehabilitation of unused existing infrastructure would reduce overall project costs. Second, the additional digester capacity would provide buffering capabilities if Encina experiences a process upset where an upset digester would need to be isolated and the biological activity restored to normal levels without the potential to spill digested solids. Third, spare solids management capacity is needed to ensure preventive maintenance can be performed on the digesters helping increase infrastructure sustainability and resiliency and lowering long-term costs. Without the spare capacity to meet permit requirements, allow for appropriate control of process upsets and for proactive and preventative maintenance, the risk of permit violations, infrastructure failures and costly rehabilitation increases significantly. Over the next 5 years, improvements to Encina's Digester 1, 2, and 3 are expected to have a cost order of magnitude of $40-50 million, in 2026 dollars.

Regulatory Environment
Stringent regulations continue to put significant pressure on Encina and contribute to increased long term business risk due to their unpredictable nature. Encina leadership remains engaged with current and planned regulatory efforts by local, state, and federal agencies with authority over authority over Encina’s operations, especially: air quality, ocean outfall water quality, and biosolids disposal. The most evident impact on Encina’s budget is due to air quality regulations on toxic compounds by the San Diego Air Pollution Control District, threatening Encina’s continued use of the cogeneration engines to produce power onsite. Without a viable and adaptable alternative, Encina calculated energy costs would increase ~$3.3 million annually, in 2025 dollars. The CLEAR project aims to stabilize those energy costs while simultaneously addressing air quality regulations. Federal funding totaling ~$14 million is expected to offset a portion of the expected ~$30 million for the CLEAR project.

In regards to water quality and biosolids, staff anticipates Encina’s 2018 National Pollutant Discharge Elimination System (NPDES) permit, will be renewed by 2027 with additional requirements not yet known. It is expected the Regional Water Quality Control Board will require monitoring of nutrients discharged from the Encina Ocean Outfall, along with costly Polyfluorinated Aromatic Compounds (PFAS) sampling in ocean discharge and biosolids. Future restriction of nutrients allowed from Encina’s outfall could be ultimately incredibly costly, estimated between $100-$220 million in 2025 dollars, and investments beyond monitoring would be needed as early as the next permit cycle in 2032-2037. Biosolids disposal rules under the Federal Clean Water Act appear stable under the current administration, but state legislation or other market pressures from the state of Arizona may impact Encina’s ability to continue current biosolids hauling and disposal practices in future fiscal years.

General Capital
The proposed capital budget reflects steps to begin addressing these challenges. The Capital Improvement Projects are planned, scoped, and prioritized to consider anticipated changes in regulatory requirements, prospective operational efficiencies, funding availability, available resources and other factors.

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Staffing resources are also critical to the successful execution of the decades-long capital plan to address Encina’s challenges.

As such, the Recommended FY 2026-27 Capital Budget includes funding for ~11 full-time equivalent (FTE) positions. These positions include full and part-time efforts of Encina executives, professionals, managers, and technical staff who plan, direct, and support Encina’s Capital Program. The addition of the Engineer position during the Fiscal Year 2024-25 budget cycle has helped support the significant workload associated with Encina’s aging infrastructure, capacity improvements, and regulatory requirements. As part of Encina’s commitment to “adaptive management” and to further support the capital program, two additional changes were made during Fiscal Year 2025-26. The Engineering Services Manager position was eliminated and a Director of Engineering position was created. Additionally, one Operations Manager position was eliminated and an Associate Engineer position was created. These staffing changes are anticipated to support project delivery, long-term asset management, and regulatory and permit compliance, among other factors.

Capital Improvement Projects for FY 2026-27 include new and continued funding of the Primary Sedimentation Basin Mechanical Rehabilitation ($5.6M), the Secondaries & Effluent Electrical & Controls Improvements ($4.5M), Odor Reducing Facility I System Rehabilitation ($2.5M), and CLEAR ($1.5M), along with over 55 other projects of lesser value.

Planned Asset Rehabilitation and Replacement (PARR) effort at EWPCF reflects minor plant rehabilitation efforts undertaken by Encina staff to maintain the Joint System assets. PARR Projects total ~$1.7M. EWPCF Capital Acquisitions total ~$0.5M and reflect investment in minor infrastructure and equipment. Remote Facilities – Acquisitions and Rehabilitation total ~$1.2M and reflect investment in remote facility improvements.

SUMMARY
Staff has made every effort to coordinate with the Member Agencies and provides its best professional judgement based on understanding the day-to-day operating requirements and capital investment needs while developing the budget. This budget represents a comprehensive plan to address the challenges Encina is facing. The two largest factors influencing the success of its decades-long plan are funding and staffing. As such, staff will be working with the Member Agencies to identify alternatives to pay-as-you-go funding to help minimize the financial impacts to their ratepayers and realize the economic value of Encina’s resources. A staffing framework has also been developed to support these efforts. However, given the impacts of adding staff, Encina is proposing to take an “adaptive management" approach to ensure Encina continues to operate using a lean staffing model; only having the staff necessary to support its mission and reassessing staffing needs when appropriate. This commitment has been demonstrated by the staffing changes discussed elsewhere in this letter and reflected in the Authorized Positions section of the budget. Staff will be working with the Board and Member Agencies on solutions over the next decade to ensure Encina can continue to protect public and environmental health for generations to come.

Through efforts by staff, Encina consistently looks for opportunities to enhance efficiency and provide value to its Member Agencies and their rate payers. As a result, Encina has been able to hold a very tight line on all costs that are discretionary with an increase of ~0.8% above last year’s budget. Encina continues to look for long-term solutions to infrastructure challenges that provide lasting value for the community it serves.

Please join me in recognizing the staff whose efforts produced this document. Assistant General Manager Jennifer Sabine, who prepared and developed operations estimates with the Executive Leadership team at Encina. Aaron Beanan, Director of Finance, who led efforts in the preparation and development of the Recommended FY 2026-27 Budget. Finally, the Executive Leadership Team coordinated the budget development processes within their respective departments.

Respectfully Submitted,

Scott McClelland, P.E., BCEE, MBA
General Manager

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ABOUT ENCINA

Founded in 1961, the Encina Wastewater
Authority (Encina) is a public joint
powers authority located in North San
Diego County. Encina provides
wastewater treatment services on behalf
of its six (6) Member Agencies.

Facts

Founded
1961

Population Served
380,000

Service Area
123 square miles

Permitted Liquid Treatment Capacity

40.51 million gallons per day (dry weather)

Permitted Solids Treatment Capacity

43.53 million gallons per day (dry weather)
Member Agencies

City of Carlsbad
July 13, 1961

City of Vista
July 13, 1961

Buena Sanitation District
January 6, 1964

Vallecitos Water District
March 22, 1965

City of Encinitas
August 17, 1971

Leucadia Wastewater District
August 17, 1971

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RESOURCE RECOVERY
Encinas has long been a leader in the wastewater industry while still remaining within the industry standards for cost of service. Encina
was one of the first in the nation to
adopt a cogeneration model back in
the 1980’s, one of the first in the state
and nation to adopt a heat dryer
model, and one of the first in the
nation to use beer wastes as a power
generation source in 2017. Each of
these has provided value to Encina, its
Member Agencies, and their
ratepayers. Because of Encina’s
unique approach within the industry, it provides exceptional value for its Member Agencies and ratepayers.

ORGANIZATION OF EXCELLENCE
Encina is a model of excellence and innovation. Encina has received over 40 awards for organizational excellence and innovations over the past decade. This reflects the competence of Encina’s highly qualified, trained, and certified workforce. Some recent awards are shown here.

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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 Board of DirectorsGeneral
Counsel
General Manager

1.0 FTE
Assistant General
Manager

1.0 FTE
Board
Secretary/Executive
Assistant

1.0 FTE
Director of
Engineering

1.0 FTE
Administrative
Assistant

1.0 FTE
Senior Construction
Manager

1.0 FTE
Engineer

1.0 FTE
Human Resources
Analyst

1.0 FTE
Human Resources
Manager

1.0 FTE
Director of Finance

1.0 FTE
Director of
Environmental
Compliance

1.0 FTE
Director of
Operations

1.0 FTE
Director of
Technical Services

1.0 FTE
Accounting
Supervisor

1.0 FTE
Management
Analyst

1.0 FTE
Inventory Control
Technician

1.0 FTE
Accounting
Technician

1.0 FTE
Procurement
Specialist

1.0 FTE
Safety and Training
Manager

1.0 FTE
Source Control
Manager

1.0 FTE
Laboratory
Manager

1.0 FTE
Chemist

5.0 FTE
Source Control
Inspector

3.0 FTE
Operations
Manager

1.0 FTE
Operations
Supervisor

4.0 FTE
Operator

20.0 FTE
Information
Systems Manager

1.0 FTE
Maintenance
Manager

1.0 FTE
Field Services
Superintendent

1.0 FTE
Information
Systems Analyst

3.0 FTE
Mechanical
Technician Supervisor

1.0 FTE
Electrical and
Instrumentation
Supervisor

1.0 FTE
Electrical and
Instrumentation
Technician

3.0 FTE
Mechanical
Technician

7.0 FTE
ORGANIZATION CHART (78 FTEs)
Energy Systems
Manager

1.0 FTE
Electrical and
Instrumentation
Supervisor

1.0 FTE
Cogeneration
Specialist

2.0 FTE
Associate Engineer

1.0 FTE
Environmental
Compliance Analyst

1.0 FTE

ENCINA WASTEWATER AUTHORITY
Budget | Fiscal Year 2026-27

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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 2024-25 Budget 2025-26 Budget 2026-27 Budget
Office of the General Manager
General Manager 1.00 1.00 1.00
Assistant General Manager 1.00 1.00 1.00
Engineering Services Manager1

1.00 1.00 0.00
Director of Engineering1

0.00 0.00 0.00
Senior Construction Manager 1.00 1.00 0.00
Engineer 1.00 1.00 0.00
Associate Engineer1

0.00 0.00 0.00
Human Resources Manager 1.00 1.00 1.00
Human Resources Analyst 1.00 1.00 1.00
Board Secretary/Executive Assistant 1.00 1.00 1.00
Administrative Assistant I/II 1.00 1.00 1.00
Total 9.00 9.00 6.00
Engineering Department1
Director of Engineering1

0.00 0.00 1.00
Engineering Services Manager1

0.00 0.00 0.00
Senior Construction Manager 0.00 0.00 1.00
Engineer 0.00 0.00 1.00
Associate Engineer1

0.00 0.00 1.00
Total 0.00 0.00 4.00
Finance Department
Director of Finance 1.00 1.00 1.00
Accounting Supervisor 1.00 1.00 1.00
Accounting Technician I/II 1.00 1.00 1.00
Contract Administrator1

1.00 1.00 0.00
Inventory Control Technician 1.00 1.00 1.00
Management Analyst1

0.00 0.00 1.00
Procurement Specialist 1.00 1.00 1.00
Total 6.00 6.00 6.00
Operations Department
Director of Operations 1.00 1.00 1.00
Operations Manager1

3.00 3.00 1.00
Operations Supervisor2

6.00 4.00 4.00
Lead Operator1

5.00 7.00 0.00
Operator-In-Training/Operator I/II/III1

15.00 14.00 20.00

AUTHORIZED POSITIONS
Summary by Department

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Item #6 Page 82 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 2024-25 Budget 2025-26 Budget 2026-27 Budget

AUTHORIZED POSITIONS
Summary by Department
Operations Training and Quality Control Specialist 1

1.00 1.00 0.00
Total 31.00 30.00 26.00
Technical Services Department
Director of Technical Services 1.00 1.00 1.00
Maintenance Manager 1.00 1.00 1.00
Energy Systems Manager 0.00 0.00 1.00
Electrical and Instrumentation Supervisor1

1.00 1.00 2.00
Electrical and Instrumentation Technician-In-Training/
Electrical and Instrumentation Technician I/II/III 3.00 3.00 3.00 Mechanical Technician Supervisor 1.00 1.00 1.00
Lead Mechanical Technician1

1.00 1.00 0.00
Mechanical Technician I/II/III1

6.00 6.00 7.00
Cogeneration Specialist3

1.00 2.00 2.00
Field Services Superintendent 1.00 1.00 1.00
Information Systems Manager 1.00 1.00 1.00
Information Systems Analyst 3.00 3.00 3.00
Total 20.00 21.00 23.00
Environmental Compliance Department
Director of Environmental Compliance 1.00 1.00 1.00
Source Control Manager 1.00 1.00 1.00
Source Control Inspector I/II/III 3.00 3.00 3.00
Laboratory Manager 1.00 1.00 1.00
Chemist I/II/III 5.00 5.00 5.00
Environmental Compliance Analyst1

0.00 0.00 1.00
Safety and Training Manager 1.00 1.00 1.00
Total 12.00 12.00 13.00
Full-time Equivalent Employees Summary
Office of the General Manager 9.00 9.00 6.00
Engineering 0.00 0.00 4.00
Finance 6.00 6.00 6.00
Operations 31.00 30.00 26.00
Technical Services 20.00 21.00 23.00
Environmental Compliance 12.00 12.00 13.00
Total 78.00 78.00 78.00

1. Mid-year change per General Manager authority during Fiscal Year 2025-26.

2. Retitled as part of Reward Strategy Group's 2026 salary and benefits survey.

3. Mid-year change per General Manager authority during Fiscal Year 2024-25.

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Item #6 Page 83 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 Salaries
FY 2025-26
Budget % of Total FY 2026-27
Budget % of Total % Change
Regular 11,181,408$ 11,780,484$ 5.4%
Overtime 225,883$ 237,985$ 5.4%
Holiday 119,000$ 120,000$ 0.8%
Temporary & Part-Time Staff 50,000$ 40,000$ -20.0% Intern Program 33,290$ 62,370$ 87.4% Shift Differential 39,000$ 33,000$ -15.4% Incentive Awards 25,000$ 25,000$ 0.0% Standby 6,000$ 11,000$ 83.3% Subtotal Salaries 11,679,581$ 68.2% 12,309,839$ 69.3% 5.4% FY 2025-26
Budget % of Total FY 2026-27
Budget % of Total % Change
CalPERS Retirement Program — Normal Cost 2,302,458$ 2,366,416$ 2.8% CalPERS Retirement Unfunded Liability 1,279,642$ 1,199,335$ -6.3% CalPERS Employee Contribution (907,153)$ (954,679)$ 5.2% Other Post-Employment Benefits 87,227$ 50,557$ -42.0% Flexible Benefits 125 Plan 1,871,411$ 1,947,094$ 4.0% Deferred Compensation 409,787$ 432,660$ 5.6% Medicare 181,069$ 192,281$ 6.2%
Workers Compensation Insurance 179,369$ 174,700$ -2.6% Other Ancillary Benefits 52,800$ 53,000$ 0.4% Subtotal Benefits 5,456,610$ 31.8% 5,461,365$ 30.7% 0.1% Total Personnel Expense 17,136,191$ 100.0% 17,771,205$ 100.0% 3.7% FY 2025-26
Budget
FY 2025-26
Positions
FY 2026-27
Budget
FY 2026-27
Positions % Change
Encina Water Pollution Control Facility 7,977,940$ 39.95 8,136,985$ 38.78 2.0% Source Control 942,391$ 4.46 1,012,241$ 4.40 7.4% Agua Hedionda Lift Station 282,034$ 1.32 246,994$ 1.05 -12.4% Buena Creek Pump Station 238,010$ 1.26 209,485$ 0.87 -12.0% Buena Vista Pump Station 232,919$ 1.07 210,761$ 0.89 -9.5% Carlsbad Water Reclamation Facilities 505,487$ 2.05 535,405$ 2.44 5.9% Raceway Basin Pump Station 149,003$ 0.71 142,275$ 0.62 -4.5% Remote Facilities 1,407,453$ 6.41 1,344,920$ 5.87 -4.4% Subtotal 10,327,784$ 50.82 10,494,146$ 49.05 1.6% Internal Service Funds 4,226,878$ 17.08 4,470,080$ 18.11 5.8% Subtotal Operating 14,554,662$ 67.89 14,964,226$ 67.16 2.8% Capital Program 2,581,529$ 10.11 2,806,979$ 10.84 8.7% Total Personnel Expense 17,136,191$ 78.00 17,771,205$ 78.00 3.7% PERSONNEL EXPENSE SUMMARY by ACCOUNT
Benefits
PERSONNEL EXPENSE SUMMARY by PROGRAM
Programs

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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4

OPERATING

SECTION
Operating Budget Summaries
Encina Water Pollution Control Facility
Environmental Compliance & Regional Source Control
Remote Facilities:

Agua Hedionda Pump Station
Buena Creek Pump Station
Buena Vista Pump Station
Carlsbad Water Recycling Facility
Raceway Basin Pump Station
Internal Service Funds

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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27

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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27 Change %
City of Carlsbad 7,920,193$ 8,380,330$ 8,398,690$ 8,849,210$ 468,880$ 5.6% City of Vista 6,997,793$ 7,607,624$ 7,106,545$ 7,562,618$ (45,006)$ -0.6% Buena Sanitation District 2,651,241$ 2,919,877$ 2,651,706$ 2,841,818$ (78,059)$ -2.7% Vallecitos Water District 4,740,331$ 4,880,755$ 4,515,452$ 5,468,766$ 588,011$ 12.0% City of Encinitas 961,929$ 1,020,554$ 951,844$ 1,041,484$ 20,930$ 2.1% Leucadia Wastewater District 3,282,908$ 3,414,904$ 3,087,050$ 3,625,259$ 210,355$ 6.2% Sub Total 26,554,395$ 28,224,044$ 26,711,287$ 29,389,155$ 1,165,111$ 4.1% Estimated Other Revenue 475,000$ 537,500$ 490,000$ 15,000$ 3.2% Total 26,554,395$ 28,699,044$ 27,248,787$ 29,879,155$ 1,180,111$ 4.1% Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27 Change %
Encina Water Pollution Control Facility 20,939,015$ 21,956,526$ 20,422,016$ 22,822,612$ 866,086$ 3.9% Source Control 1,267,812$ 1,390,729$ 1,364,495$ 1,494,089$ 103,360$ 7.4% Agua Hedionda Lift Station 660,728$ 731,488$ 699,713$ 716,563$ (14,925)$ -2.0% Buena Creek Pump Station 558,114$ 702,898$ 671,341$ 645,654$ (57,244)$ -8.1% Buena Vista Pump Station 862,164$ 1,038,211$ 975,710$ 990,228$ (47,983)$ -4.6% Carlsbad Water Recycling Facility 1,995,216$ 2,075,864$ 2,249,939$ 2,402,416$ 326,552$ 15.7% Raceway Basin Pump Station 271,346$ 328,328$ 328,073$ 317,593$ (10,735)$ -3.3% Total 26,554,395$ 28,224,044$ 26,711,287$ 29,389,155$ 1,165,111$ 4.1% (475,000)$ (537,500)$
Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27 Change %
Encina Water Pollution Control Facility 20,939,015$ 22,431,526$ 20,959,516$ 23,312,612$ 881,086$ 3.9% Source Control 1,267,812$ 1,390,729$ 1,364,495$ 1,494,089$ 103,360$ 7.4% Agua Hedionda Lift Station 660,728$ 731,488$ 699,713$ 716,563$ (14,925)$ -2.0% Buena Creek Pump Station 558,114$ 702,898$ 671,341$ 645,654$ (57,244)$ -8.1% Buena Vista Pump Station 862,164$ 1,038,211$ 975,710$ 990,228$ (47,983)$ -4.6% Carlsbad Water Recycling Facility 1,995,216$ 2,075,864$ 2,249,939$ 2,402,416$ 326,552$ 15.7% Raceway Basin Pump Station 271,346$ 328,328$ 328,073$ 317,593$ (10,735)$ -3.3% Total 26,554,395$ 28,699,044$ 27,248,787$ 29,879,155$ 1,180,111$ 4.1% Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27 Change %
Personnel 9,055,730$ 10,327,784$ 9,103,101$ 10,494,146$ 166,362$ 1.6% Non-Personnel 8,463,562$ 8,602,701$ 7,826,904$ 9,197,112$ 594,411$ 6.9% Internal Service Fund 9,035,103$ 9,768,559$ 10,318,782$ 10,187,897$ 419,338$ 4.3% Total 26,554,395$ 28,699,044$ 27,248,787$ 29,879,155$ 1,180,111$ 4.1% Combined Operating Budget Expense
OPERATING BUDGET: REVENUE and EXPENSE SUMMARY
Operating Revenues from Member Agencies by Program
Operating Budget Expense Summary by Program
Revenue Summary

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June 16, 2026
Item #6 Page 88 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27 Change %
Personnel 7,082,517$ 7,977,940$ 6,551,506$ 8,136,985$ 159,045$ 2.0% Non-Personnel 6,106,449$ 5,999,403$ 5,429,058$ 6,352,348$ 352,945$ 5.9% Internal Service Fund 7,750,049$ 8,454,183$ 8,978,952$ 8,823,279$ 369,096$ 4.4% Total 20,939,015$ 22,431,526$ 20,959,516$ 23,312,612$ 881,086$ 3.9% Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27 Change %
Personnel 824,442$ 942,391$ 917,865$ 1,012,241$ 69,850$ 7.4% Non-Personnel 77,103$ 46,306$ 36,486$ 57,570$ 11,264$ 24.3% Internal Service Fund 366,267$ 402,032$ 410,144$ 424,278$ 22,246$ 5.5% Total 1,267,812$ 1,390,729$ 1,364,495$ 1,494,089$ 103,360$ 7.4% Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27 Change %
Personnel 218,484$ 282,034$ 277,819$ 246,994$ (35,040)$ -12.4% Non-Personnel 273,327$ 301,853$ 271,508$ 322,430$ 20,577$ 6.8% Internal Service Fund 168,917$ 147,601$ 150,386$ 147,139$ (462)$ -0.3% Total 660,728$ 731,488$ 699,713$ 716,563$ (14,925)$ -2.0% Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27 Change %
Personnel 180,861$ 238,010$ 302,949$ 209,485$ (28,525)$ -12.0% Non-Personnel 264,838$ 359,861$ 261,384$ 331,952$ (27,909)$ -7.8% Internal Service Fund 112,415$ 105,027$ 107,008$ 104,217$ (810)$ -0.8% Total 558,114$ 702,898$ 671,341$ 645,654$ (57,244)$ -8.1% Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27 Change %
Personnel 193,174$ 232,919$ 274,032$ 210,761$ (22,158)$ -9.5% Non-Personnel 552,565$ 698,454$ 592,825$ 671,534$ (26,920)$ -3.9% Internal Service Fund 116,425$ 106,838$ 108,853$ 107,933$ 1,095$ 1.0% Total 862,164$ 1,038,211$ 975,710$ 990,228$ (47,983)$ -4.6% Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27 Change %
Personnel 441,857$ 505,487$ 582,611$ 535,405$ 29,918$ 5.9% Non-Personnel 1,109,963$ 1,088,516$ 1,176,245$ 1,358,328$ 269,812$ 24.8% Internal Service Fund 443,396$ 481,861$ 491,083$ 508,683$ 26,822$ 5.6% Total 1,995,216$ 2,075,864$ 2,249,939$ 2,402,416$ 326,552$ 15.7% Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27 Change %
Personnel 114,395$ 149,003$ 196,319$ 142,275$ (6,728)$ -4.5% Non-Personnel 79,317$ 108,308$ 59,398$ 102,950$ (5,358)$ -4.9% Internal Service Fund 77,634$ 71,017$ 72,356$ 72,368$ 1,351$ 1.9% Total 271,346$ 328,328$ 328,073$ 317,593$ (10,735)$ -3.3% OPERATING BUDGET: EXPENSE SUMMARY
Carlsbad Water Recycling Facility
Raceway Basin Pump Station
Encina Water Pollution Control Facility
Environmental Compliance ─ Source Control
Agua Hedionda Lift Station
Buena Vista Pump Station
Buena Creek Pump Station

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June 16, 2026
Item #6 Page 89 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27 Change %
Encina Water Pollution Control Facility 5,288,764$ 5,558,590$ 5,399,799$ 5,685,229$ 126,639$ 2.3% Source Control 342,384$ 411,869$ 431,267$ 437,166$ 25,297$ 6.1% Agua Hedionda Lift Station 204,165$ 226,031$ 216,212$ 221,416$ (4,615)$ -2.0% Buena Vista Pump Station 89,664$ 107,976$ 101,473$ 102,983$ (4,993)$ -4.6% Carlsbad Water Recycling Facility 1,995,216$ 2,075,864$ 2,249,939$ 2,402,416$ 326,552$ 15.7% Total 7,920,193$ 8,380,330$ 8,398,690$ 8,849,210$ 468,880$ 5.6% Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27 Change %
Encina Water Pollution Control Facility 5,053,364$ 5,403,604$ 4,970,450$ 5,380,837$ (22,767)$ -0.4% Source Control 444,020$ 440,000$ 450,284$ 481,796$ 41,796$ 9.5% Agua Hedionda Lift Station 456,563$ 505,457$ 483,501$ 495,147$ (10,310)$ -2.0% Buena Vista Pump Station 772,500$ 930,235$ 874,237$ 887,245$ (42,990)$ -4.6% Raceway Basin Pump Station 271,346$ 328,328$ 328,073$ 317,593$ (10,735)$ -3.3% Total 6,997,793$ 7,607,624$ 7,106,545$ 7,562,618$ (45,006)$ -0.6% Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27 Change %
Encina Water Pollution Control Facility 1,965,387$ 2,069,694$ 1,867,175$ 2,101,164$ 31,470$ 1.5% Source Control 127,740$ 147,285$ 113,190$ 95,000$ (52,285)$ -35.5% Buena Creek Pump Station 558,114$ 702,898$ 671,341$ 645,654$ (57,244)$ -8.1% Total 2,651,241$ 2,919,877$ 2,651,706$ 2,841,818$ (78,059)$ -2.7% Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27 Change %
Encina Water Pollution Control Facility 4,525,867$ 4,631,870$ 4,311,458$ 5,209,574$ 577,704$ 12.5% Source Control 214,464$ 248,885$ 203,994$ 259,192$ 10,307$ 4.1% Total 4,740,331$ 4,880,755$ 4,515,452$ 5,468,766$ 588,011$ 12.0% Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27 Change %
Encina Water Pollution Control Facility 920,105$ 972,046$ 894,237$ 976,259$ 4,213$ 0.4% Source Control 41,824$ 48,508$ 57,607$ 65,225$ 16,717$ 34.5% Total 961,929$ 1,020,554$ 951,844$ 1,041,484$ 20,930$ 2.1% Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27 Change %
Encina Water Pollution Control Facility 3,185,528$ 3,320,722$ 2,978,897$ 3,469,549$ 148,827$ 4.5% Source Control 97,380$ 94,182$ 108,153$ 155,710$ 61,528$ 65.3% Total 3,282,908$ 3,414,904$ 3,087,050$ 3,625,259$ 210,355$ 6.2% OPERATING BUDGET: REVENUE SUMMARY
Leucadia Wastewater District
City of Encinitas
City of Carlsbad
City of Vista
Vallecitos Water District
Buena Sanitation District

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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27

ENCINA WATER POLLUTION CONTROL FACILITY
The Encina Water Pollution Control Facility (EWPCF), located in Carlsbad, California, provides wastewater treatment services to approximately 380,000 residents in a 123 square mile service area of northwest San Diego County. The EWPCF consists of three major components: the treatment plant; the Encina Ocean Outfall (EOO); and the Joint Flow Metering System (JFMS).

The EWPCF was constructed in 1963 to treat wastewater from the Cities of Carlsbad and Vista, with the City of Encinitas, Vallecitos Water District, Buena Sanitation District and Leucadia Wastewater District joining the partnership in the subsequent years. Since its original design and construction, the treatment plant has undergone four (4) major expansions – the latest completed in 2009 – and is beginning another round of construction to address reliability and aging infrastructure.

Today, the EWPCF is a modern resource recovery facility that produces: clean water for recycling and Pacific Ocean discharge (via primary and secondary activated sludge treatment processes); flow equalization facilities; and a 1.5 mile EOO, which discharges treated effluent at an average depth of one-hundred-fifty (150) feet; a granular fertilizer marketed under the trade name PureGreen (via anaerobic digesters, solids dewatering centrifuges, and a triple-pass rotary drum heat dryer); and, between 80 and 85% of the electricity required to power the EWPCF (via a Combined Heat & Cogeneration Power System) in a typical year. In addition, the JFMS consists of nineteen (19) flow meters strategically placed throughout the collection system. The data collected at these metering sites, which is analyzed and certified by an independent consultant, is a critical element in allocating EWPCF costs among the Encina Member Agencies.

Capacity – The EWPCF has a rated liquid treatment capacity of 40.51 million gallons per day (MGD) and a rated solids treatment capacity of 43.53 MGD. During FY 2025-26, the EWPCF will: (1) clean more than 9.14 billion gallons of water; (2) recycle about 2.1 billion gallons for on-site use and regional irrigation; and, (3) process 103 million gallons of digested sludge into over 6,979 tons of biosolids as 5,088 tons of Class A Exceptional Quality biosolids and 1,891 tons of Class B biosolids based on prior year actuals.

Cost Allocation – The EWPCF costs are allocated among member agencies based on ownership and usage charges in accordance with the Financial Plan and Revenue Program. EOO costs are allocated among Member Agencies based on the volume of effluent discharged. JFMS costs are allocated among the Member Agencies based on the number, location and type of meters.

Encina Water Pollution Control Facility

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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 5100 Salaries 5,244,604$ 5,418,244$ 4,560,695$ 5,619,774$ 3.7% 5200 Benefits 1,837,913$ 2,559,696$ 1,990,810$ 2,517,211$ -1.7% Total Personnel Expenses 7,082,517$ 7,977,940$ 6,551,506$ 8,136,985$ 2.0% 21001 7330 Specialty Services 162,849$ 182,172$ 171,342$ 185,364$ 1.8% 22001 5400 CEPT Polymer 189,998$ 189,101$ 116,386$ 147,079$ -22.2% 22001 5401 Ferric Chloride 900,728$ 1,067,156$ 971,616$ 1,011,449$ -5.2% 22001 5405 Atmospheric Control (Nitrogen) 18,855$ 41,328$ 23,335$ 33,479$ -19.0% 22001 5406 Pellet Dust Control 25,557$ 48,841$ 53,222$ 45,000$ -7.9% 22001 5407 Sodium Hypochlorite 144,627$ 141,741$ 142,223$ 149,000$ 5.1% 22001 5409 Dewatering / Thickening Polymer 1,282,954$ 1,093,878$ 1,074,674$ 1,230,613$ 12.5% 22001 5420 Biosolids Recycling 1,271,478$ 1,072,500$ 838,604$ 1,098,531$ 2.4% 22001 5422 Pure Green Marketing 12,860$ 15,000$ 15,351$ 15,000$ 0.0% 22001 5423 Grit Hauling 148,215$ 143,500$ 106,475$ 101,400$ -29.3% 22001 5431 Water 15,598$ 21,162$ 22,085$ 26,000$ 22.9% 22001 6410 Laundry & Uniforms -$ -$ 10,643$ 18,000$ 0.0% 22001 6430 Memberships 2,726$ 7,531$ 3,978$ 7,125$ -5.4% 22001 6450 Professional Services 26,406$ 47,000$ 25,000$ 60,000$ 27.7% 22001 6720 Specialty Equipment 45,450$ 29,250$ 30,887$ 43,250$ 47.9% 22001 6920 Permits 22,547$ 37,612$ 37,005$ 42,762$ 13.7% 22001 7310 Safety & Medical Services 253,351$ 198,500$ 201,425$ 275,200$ 38.6% 22001 7320 Safety Equipment -$ -$ 2,925$ -$ 0.0% 22001 7330 Specialty Services 4,409$ 5,500$ 5,129$ 5,500$ 0.0% 22001 7610 Professional Development 21,516$ 22,000$ 23,345$ 49,000$ 122.7% 23001 5410 Chemicals 2,337$ 6,000$ -$ 6,000$ 0.0% 23001 5445 Telephone 216$ -$ -$ -$ 0.0% 23001 5910 Equipment Rental 2,886$ 14,000$ 16,272$ 15,000$ 7.1% 23001 6120 Fuel & Lube 35,629$ 39,613$ 42,168$ 43,000$ 8.6% 23001 6230 Janitorial 103,031$ 107,000$ 106,546$ 112,500$ 5.1% 23001 6410 Laundry & Uniforms 15,256$ 25,000$ 25,884$ 16,000$ -36.0% 23001 6430 Memberships 1,982$ 4,640$ 2,100$ 4,858$ 4.7% 23001 6450 Professional Services 147,146$ 20,000$ 14,115$ 95,000$ 375.0% 23001 6710 Equipment New 10,990$ 12,000$ 12,409$ 16,000$ 33.3% 23001 6930 Piping & Electrical Repair 141,193$ 140,000$ 135,759$ 170,000$ 21.4% 23001 6940 Planned Maintenance 320,574$ 324,500$ 295,635$ 322,500$ -0.6% 23001 7010 Plant Contracts 317,884$ 403,000$ 410,292$ 424,000$ 5.2% continued 
Projected
FY 2025-26
%
Change¹
Actual
FY 2024-25
Budget
FY 2025-26
OPERATING EXPENSE SUMMARY:

ENCINA WATER POLLUTION CONTROL FACILITY

PERSONNEL
NON-PERSONNEL Proposed
FY 2026-27
Proposed
FY 2026-27
Projected
FY 2025-26
Budget
FY 2025-26
Actual
FY 2024-25
%
Change¹

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Item #6 Page 94 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 23001 7510 Tools 9,988$ 18,000$ 20,249$ 15,000$ -16.7% 23001 7610 Professional Development -$ 18,000$ 17,122$ 19,500$ 8.3% 24001 6450 Professional Services -$ -$ 10,000$ 37,500$ 0.0% 24001 6810 Ocean Monitoring 9,800$ 10,000$ 10,764$ 11,000$ 10.0% 24001 6911 Effluent Testing 32,896$ 33,000$ 23,126$ 37,000$ 12.1% 24001 6920 Permits 321,694$ 337,778$ 331,694$ 338,100$ 0.1% 500xx 5610 Board of Directors Fees 50,400$ 85,860$ 55,956$ 90,384$ 5.3% 500xx 6010 Board of Directors Meeting Expense 32,424$ 37,240$ 23,316$ 35,254$ -5.3% Total Non-Personnel Expenses 6,106,449$ 5,999,403$ 5,429,058$ 6,352,348$ 5.9% 11001 Administration 3,978,674$ 4,209,265$ 4,288,664$ 4,389,598$ 4.3% 12001 Laboratory 1,197,467$ 1,427,909$ 1,456,907$ 1,449,458$ 1.5% 13001 Energy Management 2,573,908$ 2,817,009$ 3,233,381$ 2,984,223$ 5.9% Total Internal Service Fund Expenses 7,750,049$ 8,454,183$ 8,978,952$ 8,823,279$ 4.4% Total Operating Expenses 20,939,015$ 22,431,526$ 20,959,516$ 23,312,612$ 3.9%

1. Represents the percentage change from the FY 2025-26 Budget to the FY 2026-27 Proposed Budget.

Budget
FY 2025-26
Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Projected
FY 2025-26
%
Change¹

INTERNAL SERVICE FUNDS
NON-PERSONNEL EXPENSES (cont.) Proposed
FY 2026-27
Proposed
FY 2026-27
Actual
FY 2024-25
%
Change¹

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June 16, 2026
Item #6 Page 95 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27

ENVIRONMENTAL COMPLIANCE
& REGIONAL SOURCE CONTROL
The EWPCF discharges clean water to the Pacific Ocean via the Encina Ocean Outfall pursuant to a National Pollutant Discharge Elimination System (NPDES) Permit issued under the authority of the federal Clean Water Act (CWA). The CWA also covers non-domestic sources of wastewater that discharge directly to a publicly owned treatment works like the EWPCF.

Such discharges may be federally regulated or regulated by Encina’s Pretreatment Ordinance, which are enforced by Encina in cooperation with the host Member Agency under authority derived from the federal CWA. The goal of Encina’s Regional Source Control Program is to prevent the discharge of pollutants into the Member Agency sewer system, which may interfere with the operation of the EWPCF or pass through the system and negatively impact the ocean environment, the quality of PureGreen fertilizer or the ability to reclaim water. The Source Control Program achieves this goal by: identifying regulated industries; conducting facility inspections; issuing wastewater discharge permits; sampling industrial discharges to determine compliance; taking enforcement in response to noncompliance; responding to Member Agency requests to perform investigations regarding non-routine discharges; and, conducting related public outreach activities.

Capacity – During FY 2026-27 staff estimates sixty (60) industries will be fully permitted under a Class I, II, or III permit, while another 520 businesses will participate in Encina’s Best Management Practices Program.

Cost Allocation – Personnel Expenses make up over 83% of Source Control’s budgeted expenses. Over 81% of personnel expenses are allocated to Member Agencies based on the actual level of effort by staff. The remaining personnel expenses and all non-personnel expenses are allocated to the Member Agencies on the basis of Encina Ocean Outfall flows.

Public outreach at the 2025 Alta Vista Earth Day.

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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 5100 Salaries 595,478$ 632,624$ 629,397$ 687,772$ 8.7% 5200 Benefits 228,964$ 309,767$ 288,469$ 324,469$ 4.7% Total Personnel Expenses 824,442$ 942,391$ 917,865$ 1,012,241$ 7.4% 40001 5445 Telephone 378$ -$ -$ -$ 0.0% 40001 5930 Equipment Replacement 8,508$ 1,000$ -$ 3,500$ 250.0% 40001 6120 Fuel & Lube 1,367$ 2,900$ 932$ 2,900$ 0.0% 40001 6310 Lab Equipment Repair 1,482$ 9,000$ 2,740$ 7,000$ -22.2% 40001 6330 Lab Supplies 844$ 1,600$ 750$ 1,600$ 0.0% 40001 6410 Laundry & Uniforms 2,410$ 3,000$ 3,031$ 3,000$ 0.0% 40001 6422 Legal Notices 1,050$ 750$ -$ 1,300$ 73.3% 40001 6420 Legal Services 41,546$ -$ -$ 9,200$ 0.0% 40001 6430 Memberships 798$ 956$ 1,125$ 1,520$ 59.0% 40001 6450 Professional Services 7,724$ 15,000$ 15,808$ 15,000$ 0.0% 40001 7120 Printing & Reproduction -$ -$ -$ -$ 0.0% 40001 7130 Public Information 2,124$ 2,500$ 2,500$ 3,500$ 40.0% 40001 7610 Professional Development 8,872$ 9,600$ 9,600$ 9,050$ -5.7% Total Non-Personnel Expenses 77,103$ 46,306$ 36,486$ 57,570$ 24.3% 11001 Administration 268,832$ 286,098$ 291,495$ 306,470$ 7.1% 12001 Laboratory 94,859$ 113,114$ 115,412$ 114,821$ 1.5% 13001 Energy Management 2,576$ 2,820$ 3,237$ 2,987$ 5.9% Total Internal Service Fund Expenses 366,267$ 402,032$ 410,144$ 424,278$ 5.5% Total Operating Expenses 1,267,812$ 1,390,729$ 1,364,495$ 1,494,089$ 7.4%

1. Represents the percentage change from the FY 2025-26 Budget to the FY 2026-27 Proposed Budget.

Projected
FY 2025-26
Proposed
FY 2026-27
%
Change¹
INTERNAL SERVICE FUNDS Actual
FY 2024-25
Budget
FY 2025-26
OPERATING EXPENSE SUMMARY:

SOURCE CONTROL

PERSONNEL

NON-PERSONNEL
Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27
%
Change¹
Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27
%
Change¹

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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27

REMOTE FACILITIES

AGUA HEDIONDA LIFT STATION
The Agua Hedionda Lift Station (AHLS) is part of the Encina Joint Sewerage System and is jointly owned by the City of Vista and the City of Carlsbad. This pump station is located on the southeast shore of the Agua Hedionda Lagoon.

Capacity – The new AHLS is equipped four (4) lift pumps and four (4) force main pumps, providing pumping redundancy and a broad operating range. This facility is operated 365 days a year on a 24 hour-a-day basis.

Cost Allocation – The AHLS is operated by EWA under a contract with the owner agencies. The costs of operating and maintaining the AHLS are allocated to the City of Vista (69.1%) and the City of Carlsbad (30.9%) in accordance with the May 2017 Memorandum of Understanding.

Agua Hedionda Lift Station

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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 5100 Salaries 158,025$ 191,255$ 205,161$ 170,302$ -11.0% 5200 Benefits 60,459$ 90,779$ 72,658$ 76,692$ -15.5% Total Personnel Expenses 218,484$ 282,034$ 277,819$ 246,994$ -12.4% 31001 5431 Water 12,878$ 21,450$ 13,559$ 20,228$ -5.7% 31001 5435 Electricity 196,367$ 209,110$ 203,854$ 232,050$ 11.0% 31001 5910 Equipment Rental 656$ -$ -$ 1,000$ 0.0% 31001 6120 Fuel & Lube 3,522$ 10,830$ 2,988$ 10,830$ 0.0% 31001 6410 Laundry & Uniforms 514$ 550$ 348$ 550$ 0.0% 31001 6424 Info Systems: Infrastructure 3,946$ 4,000$ -$ 4,000$ 0.0% 31001 6920 Permits 5,584$ 6,613$ 6,285$ 8,972$ 35.7% 31001 6930 Piping & Electrical Repair -$ -$ -$ -$ 0.0% 31001 6940 Planned Maintenance 13,072$ 15,500$ 13,683$ 12,000$ -22.6% 31001 7010 Plant Contracts 35,539$ 30,800$ 28,515$ 30,800$ 0.0% 31001 7320 Safety Equipment 242$ 2,000$ 2,276$ 1,000$ -50.0% 31001 7510 Tools 1,007$ 1,000$ -$ 1,000$ 0.0% Total Non-Personnel Expenses 273,327$ 301,853$ 271,508$ 322,430$ 6.8% 11001 Administration 168,917$ 147,601$ 150,386$ 147,139$ -0.3% Total Internal Service Fund Expenses 168,917$ 147,601$ 150,386$ 147,139$ -0.3% Total Operating Expenses 660,728$ 731,488$ 699,713$ 716,563$ -2.0%

1. Represents the percentage change from the FY 2025-26 Budget to the FY 2026-27 Proposed Budget. %
Change¹
INTERNAL SERVICE FUNDS Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27
OPERATING EXPENSE SUMMARY:

AGUA HEDIONDA LIFT STATION

PERSONNEL

NON-PERSONNEL
Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27
%
Change¹
Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27
%
Change¹

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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27

REMOTE FACILITIES

BUENA CREEK PUMP STATION
The Buena Creek Pump Station (BCPS) is owned by the Buena Sanitation District (BSD). This pump station is located approximately two miles north of Palomar Airport Road and 1/8 mile east of Melrose Drive.

Capacity – The BCPS, which is equipped with five (5) pumps rated at 4,500 gallons per minute and is operated 365 days a year on a 24 hour-a-day basis.

Cost Allocation – The BCPS is operated by EWA under a contract with the BSD. 100% of the costs for operating and maintaining the BCPS are allocated to the BSD in accordance with the May 2017 Memorandum of Understanding.

Buena Creek Pump Station

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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 5100 Salaries 128,830$ 159,420$ 211,420$ 143,393$ -10.1% 5200 Benefits 52,031$ 78,590$ 91,529$ 66,092$ -15.9% Total Personnel Expenses 180,861$ 238,010$ 302,949$ 209,485$ -12.0% 37001 5431 Water 2,322$ 3,700$ 1,791$ 2,970$ -19.7% 37001 5435 Electricity 221,931$ 305,250$ 233,218$ 278,460$ -8.8% 37001 6120 Fuel & Lube 1,498$ 6,290$ 1,270$ 5,000$ -20.5% 37001 6410 Laundry & Uniforms 514$ 550$ 406$ 550$ 0.0% 37001 6424 Info Systems: Infrastructure 3,566$ 4,000$ -$ 4,000$ 0.0% 37001 6920 Permits 4,161$ 4,871$ 4,359$ 7,472$ 53.4% 37001 6930 Piping & Electrical Repair 4,343$ 5,000$ 7,121$ 5,000$ 0.0% 37001 6940 Planned Maintenance 3,556$ 6,500$ 510$ 5,000$ -23.1% 37001 7010 Plant Contracts 21,707$ 21,500$ 10,434$ 21,500$ 0.0% 37001 7320 Safety Equipment 242$ 1,200$ 1,275$ 1,000$ -16.7% 37001 7510 Tools 998$ 1,000$ 1,000$ 1,000$ 0.0% Total Non-Personnel Expenses 264,838$ 359,861$ 261,384$ 331,952$ -7.8% 11001 Administration 112,415$ 105,027$ 107,008$ 104,217$ -0.8% Total Internal Service Fund Expenses 112,415$ 105,027$ 107,008$ 104,217$ -0.8% Total Operating Expenses 558,114$ 702,898$ 671,341$ 645,654$ -8.1%

BUENA CREEK PUMP STATION

PERSONNEL

NON-PERSONNEL
Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27
%
Change¹
Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27
%
Change¹

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Item #6 Page 106 of 618
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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27

REMOTE FACILITIES

BUENA VISTA PUMP STATION
The Buena Vista Pump Station (BVPS) is part of the Encina Joint Sewerage System and is jointly owned by the City of Vista and the City of Carlsbad. This pump station is located on the southwest shores of the Buena Vista Lagoon.

Capacity – The BVPS, which is equipped with four (4) pumps rated at 6,000 gallons per minute and is operated 365 days a year on a 24 hour-a-day basis.

Cost Allocation – The BVPS is operated by EWA under a contract with the owner agencies. The costs of operating and maintaining the BVPS are allocated to the City of Vista (89.6%) and the City of Carlsbad (10.4%) in accordance with the May 2017 Memorandum of Understanding.

Buena Vista Pump Station

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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 5100 Salaries 140,081$ 155,046$ 185,036$ 143,188$ -7.6% 5200 Benefits 53,093$ 77,873$ 88,996$ 67,573$ -13.2% Total Personnel Expenses 193,174$ 232,919$ 274,032$ 210,761$ -9.5% 32001 5431 Water 1,064$ 1,220$ 1,167$ 1,482$ 21.5% 32001 5435 Electricity 487,539$ 632,126$ 508,787$ 603,388$ -4.5% 32001 5910 Equipment Rental -$ -$ -$ -$ 0.0% 32001 6120 Fuel & Lube 2,197$ 6,540$ 2,249$ 6,540$ 0.0% 32001 6410 Laundry & Uniforms 514$ 550$ 406$ 550$ 0.0% 32001 6424 Info Systems: Infrastructure 3,734$ 4,000$ -$ 4,000$ 0.0% 32001 6920 Permits 6,242$ 7,418$ 12,106$ 9,574$ 29.1% 32001 6930 Piping & Electrical Repair 7,264$ 7,500$ 3,058$ 5,000$ -33.3% 32001 6940 Planned Maintenance 18,085$ 13,500$ 20,100$ 13,500$ 0.0% 32001 7010 Plant Contracts 24,686$ 23,100$ 41,252$ 25,000$ 8.2% 32001 7320 Safety Equipment 242$ 1,500$ 1,700$ 1,500$ 0.0% 32001 7510 Tools 998$ 1,000$ 2,000$ 1,000$ 0.0% Total Non-Personnel Expenses 552,565$ 698,454$ 592,825$ 671,534$ -3.9% 11001 Administration 116,425$ 106,838$ 108,853$ 107,933$ 1.0% Total Internal Service Fund Expenses 116,425$ 106,838$ 108,853$ 107,933$ 1.0% Total Operating Expenses 862,164$ 1,038,211$ 975,710$ 990,228$ -4.6%

BUENA VISTA PUMP STATION

PERSONNEL

NON-PERSONNEL
Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27
%
Change¹
Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27
%
Change¹

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Item #6 Page 110 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27

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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27

REMOTE FACILITIES

CARLSBAD WATER RECYCLING FACILITY
The Carlsbad Water Recycling Facility (CWRF) is owned by the City of Carlsbad via the Carlsbad Municipal Water District. The facility is located on nine (9) acres directly adjacent to the southwest border of the EWPCF.

Capacity – The CWRF treats EWPCF secondary effluent to meet title 22, California Code of Regulations standards for disinfected tertiary recycled water, which is conveyed throughout the City for irrigation purposes. A plant expansion completed during FY 2016-17 increased the plant capacity to 7 MGD.

Cost Allocation – The CWRF is operated by Encina under a contract with the Carlsbad Municipal Water District. 100% of the costs for operating and maintaining the CWRF are paid by the Carlsbad Municipal Water District, via the City of Carlsbad, in accordance with the February 2025 Memorandum of Understanding. Recommended expenses are based on the expected recycled water production volume. Production volume is anticipated to remain consistent during Fiscal Year 2026-27 due to decreased production at the Vallecitos Water District’s Meadowlark Water Reclamation Facility. The Meadowlark Water Reclamation Facility typically supplies a portion of the City of Carlsbad’s recycled water needs but will continue to be offline due to planned maintenance activities for a portion of the fiscal year. Actual expenditures will reflect the actual volume of recycled water production.

Carlsbad Water Recycling Facility

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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 5100 Salaries 324,379$ 333,168$ 399,429$ 354,754$ 6.5% 5200 Benefits 117,478$ 172,319$ 183,182$ 180,651$ 4.8% Total Personnel Expenses 441,857$ 505,487$ 582,611$ 535,405$ 5.9% 38001 5394 Sodium Hydroxide 5,578$ 20,000$ 12,729$ 17,488$ -12.6% 38001 5395 Citric Acid 11,643$ 38,100$ 22,771$ 33,618$ -11.8% 38001 5407 Sodium Hypochlorite 600,942$ 524,881$ 573,743$ 683,332$ 30.2% 38001 5408 Coagulation Polymer 2,091$ 3,300$ -$ -$ -100.0% 38001 5409 Dewatering Polymer -$ -$ -$ -$ 0.0% 38001 5411 Sodium Bisulfite 5,642$ 26,334$ 9,809$ 11,850$ -55.0% 38001 5412 Alum 1,728$ 14,100$ -$ -$ -100.0% 38001 5435 Electricity 359,468$ 303,051$ 437,773$ 457,251$ 50.9% 38001 5530 Misc. Corrosion Protection -$ 2,000$ -$ 2,000$ 0.0% 38001 5910 Equipment Rental -$ 3,500$ -$ 2,000$ -42.9% 38001 6120 Fuel & Lube 699$ 1,445$ 54$ 2,000$ 38.4% 38001 6230 Janitorial -$ 2,100$ -$ 2,150$ 2.4% 38001 6410 Laundry & Uniforms 993$ 1,250$ 920$ 1,250$ 0.0% 38001 6424 Information Systems 3,677$ 4,000$ -$ 4,000$ 0.0% 38001 6450 Professional Services 8,265$ 25,000$ 11,480$ 25,000$ 0.0% 38001 6920 Permits 35,602$ 40,855$ 40,000$ 37,789$ -7.5% 38001 6930 Piping & Electrical Repair 9,962$ 10,000$ 7,215$ 10,000$ 0.0% 38001 6940 Planned Maintenance 36,033$ 35,000$ 43,973$ 35,000$ 0.0% 38001 7010 Plant Contracts 26,129$ 30,900$ 10,853$ 30,900$ 0.0% 38001 7320 Safety Equipment 513$ 1,700$ 3,400$ 1,700$ 0.0% 38001 7510 Tools 998$ 1,000$ 1,525$ 1,000$ 0.0% Total Non-Personnel Expenses 1,109,963$ 1,088,516$ 1,176,245$ 1,358,328$ 24.8% 11001 Administration 366,503$ 390,171$ 397,531$ 415,609$ 6.5% 12001 Laboratory 76,893$ 91,690$ 93,552$ 93,074$ 1.5% Total Internal Service Fund Expenses 443,396$ 481,861$ 491,083$ 508,683$ 5.6% Total Operating Expenses 1,995,216$ 2,075,864$ 2,249,939$ 2,402,416$ 15.7% %
Change¹
INTERNAL SERVICE FUNDS Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27
OPERATING EXPENSE SUMMARY:

CARLSBAD WATER RECYCLING FACILITY

PERSONNEL

NON-PERSONNEL
Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27
%
Change¹
Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27
%
Change¹

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Item #6 Page 114 of 618
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REMOTE FACILITIES

RACEWAY BASIN PUMP STATION
The Raceway Basin Pump Station (RBPS) is owned by the City of Vista. This pump station is located approximately 1/2 mile north of Palomar Airport Road and 1/8 mile west of Melrose Drive.

Capacity – The RBPS, which is equipped with three (3) pumps rated at 1,350 gallons per minute and is operated 365 days a year on a 24 hour-a-day basis.

Cost Allocation – The RBPS is operated by EWA under a contract with the City of Vista. 100% of the costs for operating and maintaining the RBPS are allocated to the City of Vista in accordance with the May 2017 Memorandum of Understanding.

Raceway Basin Pump Station

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Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 5100 Salaries 80,414$ 98,313$ 137,271$ 95,404$ -3.0% 5200 Benefits 33,981$ 50,690$ 59,047$ 46,871$ -7.5% Total Personnel Expenses 114,395$ 149,003$ 196,319$ 142,275$ -4.5% 39001 5431 Water 808$ 1,100$ 747$ 1,231$ 11.9% 39001 5435 Electricity 38,921$ 62,040$ 33,127$ 54,600$ -12.0% 39001 6120 Fuel & Lube 1,312$ 5,648$ 1,543$ 5,648$ 0.0% 39001 6410 Laundry & Uniforms 514$ 550$ 406$ 550$ 0.0% 39001 6424 Info Systems: Infrastructure 3,526$ 4,000$ 1,209$ 4,000$ 0.0% 39001 6920 Permits 4,713$ 5,670$ 5,641$ 7,621$ 34.4% 39001 6930 Piping & Electrical Repair 514$ 2,000$ 3,007$ 2,000$ 0.0% 39001 6940 Planned Maintenance 4,243$ 5,000$ 2,794$ 5,000$ 0.0% 39001 7010 Plant Contracts 23,768$ 20,150$ 9,224$ 20,150$ 0.0% 39001 7320 Safety Equipment -$ 1,150$ 1,700$ 1,150$ 0.0% 39001 7510 Tools 998$ 1,000$ -$ 1,000$ 0.0% Total Non-Personnel Expenses 79,317$ 108,308$ 59,398$ 102,950$ -4.9% 11001 Administration 77,634$ 71,017$ 72,356$ 72,368$ 1.9% Total Internal Service Fund Expenses 77,634$ 71,017$ 72,356$ 72,368$ 1.9% Total Operating Expenses 271,346$ 328,328$ 328,073$ 317,593$ -3.3%

RACEWAY BASIN PUMP STATION

PERSONNEL

NON-PERSONNEL
Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27
%
Change¹
Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27
%
Change¹

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June 16, 2026
Item #6 Page 118 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27

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June 16, 2026
Item #6 Page 119 of 618
Docusign Envelope ID: 0E287E22-5B0D-8DEB-8003-06CA64E0D5A4 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27

INTERNAL SERVICE FUNDS
Internal Service Funds (ISFs) make categorical and overhead charges to operating and capital programs. Categorical charges are costs incurred by the ISF that are directly attributable to a particular operating or capital program the ISF supports.

Overhead charges are costs incurred by the ISF that support more than one operating or capital program. Encina’s budget reflects three ISFs: (1) Administration; (2) Laboratory; and, (3) Energy Management. The existence of these ISFs traces back to the 1998 Encina Staffing Reorganization and management’s effort to distinguish between costs required to ensure public health, produce effluent water compliant with NPDES Permit standards, and maintain the associated Encina Joint System infrastructure from costs associated with administering the Encina Joint System that could be taken on by a Member Agency or a third party administrator (Administration), permit compliance activities that could be contracted out (Laboratory), and power that could be purchased from San Diego Gas & Electric (Energy Management).

Administration – The Administration Internal Service Fund provides professional support services to Encina’s Board of Directors as well as all Operating and Capital Programs. Administration plans and executes Encina’s business, asset management, and financial plans; provides treasury and accountancy management; is responsible for required and supplemental financial reporting; administers all human resources functions, employee benefits, professional development, and other “Employer of Choice” initiatives; and, supports Encina’s governance activities. Administration also supports technology infrastructure, provides cybersecurity and data protection, provides disaster recovery and continuity planning, provides support and helpdesk services, and helps ensure compliance with various governance activities.

Laboratory – The Laboratory Internal Service Fund is responsible for monitoring and reporting activities required by: (1) Encina’s National Pollutant Discharge Elimination System (NPDES) Permit; (2) permits related to facilities operated and maintained by Encina staff; (3) Encina’s Storm Water Permit; and, (4) permits and contracts related to biosolids use. The Laboratory is also responsible for management of Encina’s Joint Flow Metering System (JFMS), as well as the sampling and data compilation elements of Encina’s Financial Plan and Revenue Program.

Encina’s Laboratory, which is certified by the State of California’s Environmental Laboratory Accreditation Program, analyzes over 30,000 samples per year including process control, plant influent and effluent, biosolids, industrial user samples, ocean water, storm water, and drinking water. A portion of the analyses is completed under contract for Encina’s Member Agencies, which generated over $205,000 in revenue in FY 2024-25, the most recent audited data, offsetting operating expenses.

Energy Management – The Energy Management Internal Service Fund utilizes the EWPCF’s power production and heat exchange facilities to maximize the beneficial reuse of digester gas produced in the wastewater treatment process thus minimizing the amount of energy Encina must purchase to operate the EWPCF. EWPCF’s Energy Management facilities generates about 12 million kilowatt hours of green electricity per year from biogas thus providing up to 85% of the electricity required to operate the EWPCF. Encina is a member of the Environmental Protection Agency’s Green Power Partnership and has been ranked in the Top 30 of the Green Power Leadership Club for On-Site Generation since 2011.

Cost Allocation – All ISF costs and revenues are allocated internally to one or more Operating or Capital program on the basis of use. Each Operating and Capital program has its own cost allocation that apportions its net costs the Member Agencies.

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Carlsbad City CouncilJune 16, 2026

Carlsbad City Council
June 16, 2026