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 (4) — Carlsbad City Council, June 16, 2026 (part 3 of 4)

June 16, 2026
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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27

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: EC574C28-EE41-8112-82BD-B665E154CC26 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: EC574C28-EE41-8112-82BD-B665E154CC26 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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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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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 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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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: EC574C28-EE41-8112-82BD-B665E154CC26 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 398 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 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 399 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 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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June 16, 2026
Item #6 Page 400 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27

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June 16, 2026
Item #6 Page 401 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 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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Item #6 Page 402 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27

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June 16, 2026
Item #6 Page 403 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 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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June 16, 2026
Item #6 Page 404 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 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 405 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 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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June 16, 2026
Item #6 Page 406 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27

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June 16, 2026
Item #6 Page 407 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 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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June 16, 2026
Item #6 Page 408 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27

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June 16, 2026
Item #6 Page 409 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 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: EC574C28-EE41-8112-82BD-B665E154CC26 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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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: EC574C28-EE41-8112-82BD-B665E154CC26 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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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: EC574C28-EE41-8112-82BD-B665E154CC26 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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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: EC574C28-EE41-8112-82BD-B665E154CC26 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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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: EC574C28-EE41-8112-82BD-B665E154CC26 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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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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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 5100 Salaries 3,303,198$ 2,882,944$ 3,159,033$ 3,114,906$ 8.0% 5200 Benefits 1,032,789$ 1,343,934$ 1,454,697$ 1,355,174$ 0.8% Total Personnel Expenses 4,335,987$ 4,226,878$ 4,613,730$ 4,470,080$ 5.8% 11001 5445 Telephone 4,307$ -$ 14,032$ -$ 0.0% 11001 5520 Books and Publications -$ 947$ -$ 947$ 0.0% 11001 5810 Employee Recognition -$ -$ 2,835$ -$ 0.0% 11001 6420 Legal Services 63,404$ 100,000$ 48,807$ 100,000$ 0.0% 11001 6430 Memberships 38,953$ 38,810$ 36,000$ 39,596$ 2.0% 11001 6440 Mileage Reimbursement 90$ -$ -$ -$ 0.0% 11001 6450 Professional Services 83,895$ 29,288$ 72,648$ 29,288$ 0.0% 11001 6830 Materials & Supplies 32,877$ 32,000$ 31,022$ 34,000$ 6.3% 11001 7110 Postage 5,104$ 7,990$ 3,406$ 7,990$ 0.0% 11001 7120 Printing & Reproduction 26$ 2,000$ -$ 2,000$ 0.0% 11001 7310 Safety & Medical Services -$ -$ -$ -$ 0.0% 11001 7410 Subscriptions 1,000$ -$ -$ -$ 0.0% 11001 7610 Professional Development 170,558$ 106,000$ 133,079$ 106,400$ 0.4% 11003 5445 Telephone -$ 11,214$ -$ 11,214$ 0.0% 11003 6210 Independent Auditor/Actuary 19,585$ 23,940$ 22,270$ 40,000$ 67.1% 11003 6220 Insurance 661,677$ 696,822$ 683,337$ 715,965$ 2.7% 11003 6430 Memberships 1,413$ 2,445$ 872$ 1,835$ -24.9% 11003 6440 Mileage Reimbursement 4,287$ 3,500$ 8,429$ 5,500$ 57.1% 11003 6450 Professional Services 109,889$ 249,650$ 209,475$ 156,650$ -37.3% 11003 7610 Professional Development 6,867$ 8,500$ 9,795$ 8,500$ 0.0% 11003 7740 Vehicles 108$ -$ -$ -$ 0.0% 11004 5510 Advertising 3,131$ 5,000$ 4,971$ 6,000$ 20.0% 11004 5810 Employee Recognition 21,851$ 30,000$ 31,391$ 50,000$ 66.7% 11004 6420 Legal Services -$ 20,000$ 24,560$ 35,000$ 75.0% 11004 6430 Memberships 4,959$ 5,838$ 10,078$ 5,468$ -6.3% 11004 6450 Professional Services 21,600$ 55,600$ 74,552$ 2,000$ -96.4% 11004 7610 Professional Development 54,751$ 81,680$ 62,118$ 115,830$ 41.8% 11005 5445 Telephone 96,973$ 128,088$ 109,120$ 136,800$ 6.8% 11005 5920 Equipment Repair Maint 4,680$ 10,000$ 5,262$ 11,000$ 10.0% continued 
%
Change¹
OPERATING EXPENSE SUMMARY:

INTERNAL SERVICE FUNDS

PERSONNEL EXPENSES

NON-PERSONNEL EXPENSES
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

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 11005 6424 Info Systems: Infrastructure 940,595$ 1,160,250$ 1,171,954$ 1,201,750$ 3.6% 11005 6430 Memberships -$ 520$ 260$ 1,560$ 200.0% 11005 7610 Professional Development 10,811$ 58,000$ 57,977$ 116,000$ 100.0% 12001 6120 Fuel & Lube 253$ 695$ -$ 200$ -71.2% 12001 6310 Lab Equipment Repair 36,172$ 47,750$ 56,696$ 53,850$ 12.8% 12001 6320 Lab Minor Equip Replace 8,817$ 4,450$ 4,232$ 4,700$ 5.6% 12001 6330 Lab Supplies 101,159$ 122,300$ 121,302$ 152,000$ 24.3% 12001 6410 Laundry & Uniforms 4,650$ 4,400$ 3,701$ 5,400$ 22.7% 12001 6430 Memberships 2,089$ 3,699$ 2,108$ 3,057$ -17.4% 12001 6450 Professional Services 19,207$ 11,500$ 10,560$ 5,800$ -49.6% 12001 6910 Outside Analysis 30,183$ 19,500$ 12,790$ 20,000$ 2.6% 12001 6911 Effluent Testing 1,348$ 2,400$ 1,170$ 2,500$ 4.2% 12001 6912 Biosolids Testing 2,553$ 9,900$ 3,237$ 9,700$ -2.0% 12001 6913 Industrial User Testing 41,017$ 60,000$ 52,901$ 58,000$ -3.3% 12001 6920 Permits 16,775$ 19,700$ 21,490$ 26,200$ 33.0% 12001 7120 Printing & Reproduction 352$ 650$ -$ 650$ 0.0% 12001 7330 Specialty Services 9,720$ 17,500$ 12,458$ 18,000$ 2.9% 12001 7610 Professional Development 3,525$ 16,500$ 4,216$ 11,000$ -33.3% 13001 5410 Chemicals 6,165$ 10,600$ 7,923$ 10,600$ 0.0% 13001 5435 Electricity 1,164,563$ 1,176,000$ 1,533,109$ 1,448,370$ 23.2% 13001 5440 Natural Gas 640,111$ 870,355$ 778,433$ 650,355$ -25.3% 13001 5445 Telephone 400$ -$ 733$ -$ 0.0% 13001 6120 Fuel & Lube 33,715$ 36,900$ 27,368$ 36,900$ 0.0% 13001 6230 Janitorial -$ -$ -$ -$ 0.0% 13001 6410 Laundry & Uniforms 1,140$ 1,400$ 1,123$ 5,500$ 292.9% 13001 6730 Non-Specific Repair & Maintenance 23,180$ 29,000$ 1,031$ 29,000$ 0.0% 13001 6920 Permits 25,330$ 25,000$ 26,236$ 46,741$ 87.0% 13001 6940 Planned Maintenance 109,625$ 113,400$ 125,345$ 108,000$ -4.8% 13001 7330 Specialty Services 51,171$ 67,500$ 64,317$ 67,500$ 0.0% 13001 7510 Tools 2,505$ 2,500$ 4,321$ 2,500$ 0.0% Total Non-Personnel Expenses 4,699,116$ 5,541,681$ 5,705,050$ 5,717,816$ 3.2% Total Operating Expenses 9,035,103$ 9,768,559$ 10,318,780$ 10,187,896$ 4.3%

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

NON-PERSONNEL EXPENSES (cont.) Actual
FY 2024-25
Budget
FY 2025-26
Projected
FY 2025-26
Proposed
FY 2026-27
%
Change¹

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26

CAPITAL

SECTION
Capital Budget Summary
Capital Improvement Program
Planned Asset Rehabilitation & Replacement
Capital Acquisitions
Remote Facilities Acquisitions & Rehabilitation
Capital Improvement Program - 5 Year Detail
Capital Improvement Program - Est. Carry Forward
Long-Term Capital Financial Plan

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27

CAPITAL PROGRAM
The Authority’s Capital Program consists of the following elements: (1) EWPCF – Capital Improvements; (2) EWPCF – Planned Asset Rehabilitation & Replacement; (3) EWPCF – Capital Acquisitions; (4) Remote Facilities – Acquisitions & Rehabilitation; (5) Five-Year Capital Improvement Plan; and (6) Twenty Year Capital Improvement Plan.

EWPCF – Capital Improvements – Capital Improvement Projects are those projects that increase or maintain the capacity of the Joint System and require a significant time commitment from staff. These projects regularly span multiple fiscal years and, therefore, unspent appropriations are carried forward by the Authority’s annual Appropriations Resolution. Capital Project costs are allocated to Member Agencies based on ownership of the affected facilities. All Capital Projects are studied, designed, and executed pursuant to Encina’s Comprehensive Asset Management Plan.

Encina Wastewater Authority, 2014
EWPCF – Planned Asset Rehabilitation & Replacement – Planned Asset Rehabilitation & Replacement projects extend the useful life of existing Joint System facilities and require a significant time commitment from staff. These projects are typically completed within a fiscal year, however, if a project cannot be completed, the Authority’s annual Appropriations Resolution will identify unspent appropriations to be carried forward. Planned Asset Replacement costs are allocated based on ownership of the affected facilities.

EWPCF – Capital Acquisitions – Capital Acquisitions include the purchase of new items and minor facility projects that maintain the capacity and useful life of existing Joint System facilities. Expenditures are allocated based on the benefiting program or internal service fund.

Remote Facilities – Acquisitions & Rehabilitation – Remote Facility Acquisitions and Rehabilitation include the purchase of new items and minor facility projects that maintain the capacity and useful life of existing remote facilities operated by the Authority. Expenditures are allocated based on ownership of the affected facilities.

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27

CAPITAL PROGRAM (cont.)

LONG TERM CAPITAL IMPROVEMENTS
Five-Year Capital Improvement Plan – The Five-Year Capital Improvement Plan includes expenditure projections for current and planned projects expected to require additional appropriations through FY 2030-3`, as identified by Encina’s Comprehensive Asset Management Plan (E-CAMP) documents. The Five-Year Capital Improvement Plan is developed and sequenced pursuant to E-CAMP.

Twenty-Year Capital Improvement Plan – The Twenty-Year Capital Improvement Plan includes expenditure projections for current and planned projects expected to require additional appropriations through FY 2045-46.

As planning reports are updated or other information becomes available, the long-term financial schedules may be revised.

Capital Programs may also be modified due to unanticipated wastewater service requirements by one or more Member Agencies, cost inflation, changes in local population and development growth patterns, and new regulatory requirements. All projections are shown in current year dollars.

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 Actual FY 2024-25¹ Budget FY 2025-26 Proposed FY 2026-27 EWPCF – Capital Improvements 16,606,063$ 18,240,000$ 19,165,000$ EWPCF – Planned Asset Rehabilitation & Replacement 1,725,778$ 1,694,000$ 1,656,000$ EWPCF – Capital Acquisitions 745,820$ 693,000$ 505,000$ Remotes Facilities – Acquisitions & Rehabilitation 1,500,485$ 1,173,500$ 1,162,000$ Subtotal 20,578,146$ 21,800,500$ 22,488,000$ Salaries & Benefits 1,861,316$ 2,581,529$ 2,806,979$ Total Capital Expense 22,439,462$ 24,382,029$ 25,294,979$ Actual FY 2024-25¹ Budget FY 2025-26 Proposed FY 2026-27 City of Carlsbad 5,490,952$ 5,983,473$ 4,390,041$ City of Vista 5,767,268$ 6,422,823$ 4,729,309$ Buena Sanitation District 1,771,825$ 1,886,985$ 1,414,408$ Vallecitos Water District 4,572,669$ 5,203,352$ 3,721,459$ City of Encinitas 866,808$ 986,363$ 704,594$ Leucadia Wastewater District 3,426,441$ 3,899,033$ 2,785,168$ Grant Revenues2 113,606$ -$ 7,550,000$ Total Capital Revenue3 22,009,569$ 24,382,029$ 25,294,979$ Actual FY 2024-25¹ Budget FY 2025-26 Proposed FY 2026-27 Liquid Process 3,317,684$ 3,100,000$ 5,600,000$ Outfall 104,171$ -$ 200,000$ Solids Process 4,524,705$ 250,000$ 1,700,000$ Energy Management 1,226,741$ 8,625,000$ 2,775,000$ General 2,632,895$ 2,150,000$ 3,450,000$ Technology 3,741,481$ 3,840,000$ 4,830,000$ Professional Services 1,058,386$ 275,000$ 610,000$ Total EWPCF – Capital Improvements 16,606,063$ 18,240,000$ 19,165,000$ EWPCF – Planned Asset Rehabilitation & Replacement 1,725,778$ 1,694,000$ 1,656,000$ EWPCF – Capital Acquisitions 745,820$ 693,000$ 505,000$ Remote Facilities – Acquisitions & Rehabilitation 1,500,485$ 1,173,500$ 1,162,000$ Personnel 1,861,316$ 2,581,529$ 2,806,979$ Total Capital Expense 22,439,462$ 24,382,029$ 25,294,979$

1. Actuals for FY 2024-25 include the expenditure of authorized appropriations carried over from the previous year.

3. Revenue difference relates to a $429,893 interest income timing difference that will be net with future year member agency billings.

2. Grant revenue is not gauranteed. See footnote on Long Term Capital Financial Plan schedule. If no grant revenue is received, the estimated shares by member agency are as follows: City of Carlsbad, $6,220,161 | City of Vista, $6,631,909 | Buena Sanitation District, $1,949,703 | Vallecitos Water District, $5,414,169 | City of Encinitas, $1,025,469 | Leucadia Wastewater District, $4,053,568.

SUMMARY of CAPITAL

CAPITAL IMPROVEMENT PROGRAM

MULTI-YEAR PROJECTS

ESTIMATED REVENUES

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 Org Object Project Amount Totals
92102 8300 12009 PSB mechanical Rehab-Short Term 5,600,000$ Total Liquid Process 5,600,000$
92102 8300 21005 Ocean Outfall Bathymetric Survey-Extgernal 50,000$ 92102 8300 21006 Ocean Outfall -Internal Integrity Assessment 150,000$ Total Outfall 200,000$
92102 8300 31010 DAFT Repairs Phase II 1,000,000$
92102 8300 32025 Struvite Management 200,000$
92102 8300 33030 Existing Dryer Major Rehabilitation 500,000$ Total Solids Process 1,700,000$
92102 8300 41006 Cogen Engine In Frame Overhaul 875,000$ 92102 8300 41015 Cogen Low Emission & Augmentation Retrofit (CLEAR) 500,000$ 92102 8300 41022 Turbo Blower Upgrade 400,000$
92102 8300 41025 Cogen Controls 1,000,000$
Total Energy Management 2,775,000$
92102 8300 51001 Odor & Corrosion Control Improvements 2,500,000$ 92102 8300 52006 Plant Water Functional Improvements 500,000$ 92102 8300 51002 ORF Carbon Media Replacement 150,000$
92102 8300 52032 Plant-wide Asset Painting & Coating 250,000$ 92102 8300 54007 Miscellaneous Building Rehabilitation 50,000$ Total General 3,450,000$
92102 8300 61206 Secondaries & Effluent Electrical & Controls 4,500,000$ 92102 8300 61514 SCADA Integration Services 230,000$
92102 8300 62150 Business Systems Improvements 100,000$ Total Technology 4,830,000$
92102 8300 81016 Asset Condition Assessments 50,000$
92102 8300 82024 Source Control Program Evaluation 85,000$ 92102 8300 84001 Extension of Staff Engineering Services 300,000$ 92102 8300 84002 Research and Development Services 100,000$ 92102 8300 84012 Air Permitting Assistance 25,000$
92102 8300 54019 CMMS/Asset Management 50,000$
Total Professional Services 610,000$
Total EWPCF – Capital Improvements 19,165,000$
Description
EWPCF – CAPITAL IMPROVEMENTS

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 Org Object Project Description Amount
80002 8010 80711 General Plant Projects 376,000$
General Plant Repairs & Unplanned Repair 175,000$
Plant Security Services 95,000$
Door Hinge and Lock Repair 50,000$
Aerial Lift Rehabilitation 6,000$
Replace Plant Lighting 10,000$
Admin Building Lab/Bathrooms Floor Replacement 40,000$
80002 8020 80040 TWAS & DAF System Projects 88,000$
TWAS Pump Rebuild 60,000$
DAF Pressurization Pump rebuild 23,000$
DAF Poly Pump Rebuild 5,000$
80002 8030 80811 Water Systems Projects 85,000$
Water Systems Pump Rebuild (2W, 3W, 3WL, 3WLC) 80,000$
Chlorine Pump Rebuild 5,000$
80002 8050 80098 Primary Area Projects 186,000$
Primary Sed Tank Parts 30,000$
Sludge Pump Rebuild Kit 30,000$
Plant Drainage Rebuild 10,000$
Primary Grinder Rebuild 16,000$
Grit Pump Rebuilds (2) 20,000$
Ferric / Polymer Pumps (2) 10,000$
Replace Valves in Gallery (8"=5, 6"=5) 20,000$
Bar Screen and Washer compacter wear parts 20,000$
Grit Dewater Parts 30,000$
80002 8050 80209 FOG System Projects 60,000$
FOG Metering Pump Replacement 15,000$
Recirc Pump Rebuild 15,000$
FOG Transporter (Lobe Pump) Rebuild 30,000$
80002 8060 80185 Secondary Area Projects 150,000$
RAS Pump Replacement 20,000$
Aeration Basin DO Probe Replacements (1 basin) 60,000$
WAS Pump Rebuild 50,000$
Clarifiers Spare Parts 20,000$
80002 8070 80195 Digester Area Projects 126,000$
Digester Mix Pump Rebuild 60,000$
Digester Transfer Pump Rebuild 12,000$
EWPCF – PLANNED ASSET REHABILITATION & REPLACEMENT

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 Org Object Project Description Amount
Digester Hot Water Pump Replacement 8,000$
Gas Equipment Maintenance (with LIT) 6,000$
Flow Meter Replacement 20,000$
Digester Heat Recirculation Pump Rebuild 20,000$
80002 8080 80419 Centrifuge Feed Pit Projects 45,000$
Centrifuge Feed Pump Grinder Rebuild 15,000$
Centrifuge Feed Pump Motor Rebuild 30,000$
80002 8080 80264 Solids Processing Equipment Projects 365,000$ Cake Pump & Gear Box Rebuild 60,000$
RTO Media Replacement 30,000$
Misc. Motors 20,000$
Furnace obsolete parts (NG Liner valve, Maxon, valves) 30,000$ Condenser Mist Eliminators replacement due to wear 30,000$ Replacement of mixer plows due to wear 30,000$
Recyle Screw Convoyer Replacement 80,000$
Cake Loadout Upgrade Gates 75,000$
Orival Spare Strainer 10,000$
80002 8090 80394 Cogeneration System Projects 175,000$
Heatloop Pump Repair 15,000$
Engine Cooling Pump VFD 15,000$
UPS Repair and Warranty 15,000$
Heat Exchangers Channel Plate & Gaskets 50,000$
Gas Flowmeter Spares 20,000$
Mix Gas Blowers Rebuild or Replacement 60,000$
Total EWPCF – Planned Asset Rehabilitation & Replacement 1,656,000$

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 Org Object Project Description Amount
23002 7710 70010 Information Technology 175,000$
Computer Replacement 40,000$
Network Hardware Repair 30,000$
SCADA Clients 20,000$
MUNIS-CMMS Integration 30,000$
IOSight Igreen Reporting 25,000$
Operator Technology Equipment 30,000$
23002 7730 70023 New Equipment 220,000$
Mechanics Master Tool Sets 10,000$
Process Monitoring TOC Analyzer 60,000$
Camera/Snake Equipment 20,000$
Spyder Crane 50,000$
Cart Rehab/Replacement 40,000$
23002 7730 70033 Operations & Administration Building 40,000$ Refrigerated Sampler for Influent Monitoring 20,000$
Laboratory Autoclave Ventilation 20,000$
23002 7750 70300 EWPCF Plant 70,000$
Centrifuge Rehabilitation 55,000$
Total EWPCF – Capital Acquisitions 505,000$
EWPCF – CAPITAL ACQUISITIONS

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 Org Object Project Amount Totals
31002 7750 70864 AHLS - Minor (Mech / Structural) Rehabilitation 20,000$ 31002 7750 70850 AHPS - Unplanned Minor Rehabilitation 10,000$ 31002 7750 70864 AHLS - Minor Electrical & Instrumentation Rehabilitation 30,000$ 31002 7750 70410 AHPS - Replace Spare Grinder 65,000$
31002 7750 70870 AHLS - Integration Assistance 60,000$
31002 7750 70840 AHLS - Pump and Motor Rebuild 50,000$
31002 7750 70860 AHLS - VFD Repairs 15,000$
31002 7750 70866 AHLS - Information Technology 15,000$
Total AHLS 265,000$
37002 7750 70841 BCPS - Minor Electrical Instrumentation & Control Rehabilitation 20,000$ 37002 7750 70851 BCPS - Minor Mechanical Rehabilitation 10,000$ 37002 7750 70855 BCPS - Minor Structural Rehabilitation 10,000$ 37002 7750 70990 BCPS - Grinder Rebuild 25,000$
37002 7750 71000 BCPS - Sewage Pump Rebuild 68,000$
37002 7750 71010 BCPS - Sewage Pump Motor Rebuild 10,000$ 37002 7750 71060 BCPS - Integration Assistance 51,000$
37002 7750 71040 BCPS - Unplanned Minor Rehabilitation 10,000$ 37002 7750 71030 BCPS - Coatings and Paintings 5,000$
37002 7750 71050 BCPS - VFD Repairs 15,000$
37002 7750 70857 BCPS - Information Technology 15,000$
Total BCPS 239,000$
32002 7750 70811 BVPS - Minor Electrical Instrumentation & Control Rehabilitation 20,000$ 32002 7750 70812 BVPS - Minor Mechanical Rehabilitation 20,000$ 32002 7750 70825 BVPS - Minor Structural Rehabilitation 20,000$ 32002 7750 70360 BVPS - Grinder Rebuild 40,000$
32002 7750 70219 BVPS - Sewage Pump & Motor Rebuild 70,000$ 32002 7750 70920 BVPS - Coatings and Paintings 5,000$
32002 7750 70930 BVPS - Unplanned Minor Rehabilitation 10,000$ 32002 7750 70940 BVPS - Integration Assistance 50,000$
32002 7750 70960 BVPS - VFD Repairs 15,000$
32002 7750 70833 BVPS - Information Technology 15,000$
Total BVPS 265,000$
38002 7750 71091 CWRF - Miscellaneous Service Requests 10,000$ 38002 7750 71111 CWRF - Minor Electrical Instrumentation & Control Rehabilitation 15,000$ 38002 7750 71081 CWRF - Minor Structural Rehabilitation 40,000$ 38002 7750 71110 CWRF - Unplanned Minor Rehabilitation 15,000$ 38002 7750 71160 CWRF - Integration Assistance 80,000$
38002 7750 71130 CWRF - VFD Repairs 15,000$
38002 7750 71150 CWRF - Forsta Filter Spare Parts 20,000$ 38002 7750 71150 CWRF - UF Parts such as Actuators, Sensors, Air System 20,000$ 38002 7750 71064 CWRF - Information Technology 15,000$
38002 7750 71150 CWRF - Spare Parts for UF Pumps 32,000$ Total CWRF 262,000$
39002 7750 70388 RBPS - Minor Electrical Instrumentation & Control Rehabilitation 5,000$ 39002 7750 70398 RBPS - Minor Mechanical Rehabilitation 10,000$ REMOTE FACILITIES – ACQUISITIONS & REHABILITATION
Description

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 Org Object Project Amount TotalsDescription
39002 7750 71191 RBPS - Minor Structural Rehabilitation 5,000$ 39002 7750 71180 RBPS - Grinder Rebuild 25,000$
39002 7750 71211 RBPS - Sewage Pump & Motor Rebuild 15,000$ 39002 7750 71220 RBPS - Coatings and Paintings 1,000$
39002 7750 71200 RBPS - Unplanned Minor Rehabilitation 5,000$ 39002 7750 71240 RBPS - Integration Assistance 35,000$
39002 7750 71210 RBPS - VFD Repairs 15,000$
39002 7750 71245 RBPS - Information Technology 15,000$
Total RBPS 131,000$
Total Remote Facilities – Capital Acquisitions & Rehabilitation 1,162,000$

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 EWPCF – CAPITAL IMPROVEMENTS, FIVE-YEAR DETAIL
Project Name Status
Project
Number
Amount
Authorized1
Prior
Appropriation2 Transfers3
Total Prior
Appropriation
Total Prior
Expenditures4
Balance as of
Feb. 2026
FY 2026-27
Appropriation
FY 2027-28
Appropriation
FY 2028-29
Appropriation
FY 2029-30
Appropriation
FY 2030-31
Appropriation
Total
Appropriations
In Progress
PSB Mechanical Rehab - Short Term IP 12009 5,230,347$ 6,100,000$ 1,351,222$ 7,451,222$ 5,549,309$ 1,901,912$ 5,600,000$ 4,000,000$ - $ - $ -$ 17,051,222$ Secondary Clarifiers and Strainers Improvements IP 13007 8,084,798 8,059,306 (33,674) 8,025,632 8,025,632 - - - - - - 8,025,632 Control Strategy Improvements IP 13019 115,659 200,000 15,659 215,659 93,657 122,001 - - - - - 215,659 Aeration Basin Minor Repairs (Diffuser Replacements) IP 13023 543,862 460,847 70,826 531,673 525,916 5,757 - - - - - 531,673 RAS Box/IJS Rehabilitation IP 13024 67,304 401,046 - 401,046 31,012 370,034 - - - - - 401,046 Effluent Pump Station Discharge Piping Valves IP 14006 102,810 267,000 (127,595) 139,405 126,687 12,719 - - - - - 139,405 84-inch Outfall Repair IP 21009 79,993 150,000 (70,007) 79,993 79,993 0 - - - - - 79,993 DAFT Repairs IP 31006 5,781,722 5,575,435 206,287 5,781,722 5,781,722 (0) - - - - - 5,781,722 DAFT Repairs: Phase II & Solids Facilities Support System IP 31010 537,517 1,350,000 (638,080) 711,920 302,230 409,690 1,000,000 2,000,000 5,000,000 4,000,000 2,000,000 14,711,920 Digester Rehabilitation and Improvements IP 32013 26,062,998 26,784,208 (379,439) 26,404,769 26,007,257 397,512 - - - - - 26,404,769 Dryer Safety Improvements IP 33026 1,937,577 1,951,042 (13,466) 1,937,576 1,937,577 (0) - - - - - 1,937,576 Existing Dryer Major Rehabilitation IP 33030 261,017 2,261,016 - 2,261,016 98,107 2,162,909 500,000 - - - - 2,761,016 Cogen Low Emission Augmentaiton & Retrofit (CLEAR)6 IP 41015 1,905,195 7,819,829 582,087 8,401,916 1,727,455 6,674,461 500,000 12,500,000 9,500,000 - - 30,901,916 Alternative Fuels Receiving Facility Improvements IP 41023 910,448 900,000 10,439 910,439 143,981 766,458 - - - - - 910,439 Automate Main Breakers in Cogen IP 41024 236,323 249,812 (13,489) 236,323 236,323 - - - - - - 236,323 Energy Management Controls-CLEAR Project IP 41025 398,399 1,917,802 - 1,917,802 399,764 1,518,038 1,000,000 2,000,000 1,000,000 - - 5,917,802 ORF I System Rehabilitation & Odor and Corrosion Control IP 51001 1,458,273 2,367,947 11,990 2,379,937 1,421,358 958,580 2,500,000 7,000,000 6,500,000 - - 18,379,937 ORF II Treatment System Improvements IP 51014 836,879 836,879 (12,802) 824,077 824,077 - - - - - - 824,077 Odor Control Improvements IP 51016 206,279 206,006 - 206,006 206,006 - - - - - - 206,006 Site Security Facilities-Tier 1 IP 52012 428,662 840,438 294,996 1,135,434 428,561 706,873 - - - - - 1,135,434 Building Roof Replacement(Secondary, Chlorine, Headworks) IP 53013 2,423,796 2,625,000 (201,205) 2,423,796 2,423,796 (0) - - - - - 2,423,796 Admin Building HVAC Rehab IP 53004 6,126,012 6,126,012 (45) 6,125,967 6,125,967 0 - - - - - 6,125,967 Flood Control Channel Restoration IP 52044 155,617 200,000 - 200,000 149,188 50,812 - - - - - 200,000 Dewatering Building Reabilitation (and Cogen Roof) IP 53015 2,035,206 1,000,000 1,131,548 2,131,548 487,348 1,644,200 - - - - - 2,131,548 Network Improvements7 IP 61205 4,183,907 4,233,383 - 4,233,383 4,183,906 49,477 - - - - - 4,233,383 Secondaries & Effluent Electrical & Controls Improvements IP 61206 12,261,178 8,139,192 (233,100) 7,906,092 6,540,712 1,365,380 4,500,000 - - - - 12,406,092 Cogen Electrical and Controls Improvements IP 61207 479,035 480,000 - 480,000 461,194 18,806 - - - - - 480,000 CPS/SEEPS Controls Improvements IP 61208 244,000 244,000 - 244,000 244,000 - - - - - - 244,000 Blower Controls Improvements IP 61209 276,774 276,778 (4) 276,774 276,774 - - - - - - 276,774 Heat Dryer Controls Improvements IP 61210 82,648 900,000 - 900,000 37,381 862,619 - - - - - 900,000 Chlorine Building and EPS Electrical and Controls Improvements IP 61211 433,908 433,908 - 433,908 433,908 - - - - - - 433,908 Centrifuge & Ancillary Systems Control Improvements IP 61212 137,822 300,000 - 300,000 75,125 224,875 - - - - - 300,000 Load Shed Controls Improvements IP 61214 41,737 41,737 - 41,737 41,737 - - - - - - 41,737 Host Server Replacement-OT IP 62706 154,972 350,000 - 350,000 285,447 64,553 - - - 460,000 - 810,000 IT Business Network Conversion IP 62710 435,841 500,000 - 500,000 406,463 93,537 - - - - - 500,000 Facility Master Plan Update IP 80827 2,685 100,000 (97,315) 2,685 2,685 - - - 400,000 - - 402,685 Potable Reuse Pilot8 IP 82015 2,188,671 2,082,055 106,485 2,188,540 2,188,671 (131) - - - - - 2,188,540 Energy Resilience Assessment IP 82020 771,712 592,319 179,393 771,712 743,594 28,118 - - - - - 771,712 Potable Reuse Strategic Plan IP 82022 249,916 249,916 (73,940) 175,976 175,976 0 - - - - - 175,976 OT Plan Update IP 82025 42,150 100,000 (68,535) 31,465 26,438 5,027 - - - - - 31,465 Heat Dryer HAZOP IP 82028 32,159 75,000 (42,841) 32,159 32,159 - - - - - - 32,159 IT Plan Update IP 82030 59,670 100,000 (40,330) 59,670 59,670 (0) - - - - - 59,670 Electronic Operations Man & Doc Mgt IP 84008 191,355 162,865 28,490 191,355 184,868 6,487 - - - - - 191,355 Total In Progress 88,196,830$ 98,010,778$ 1,943,555$ 99,954,333$ 79,533,629$ 20,420,705$ 15,600,000$ 27,500,000$ 22,400,000$ 4,460,000$ 2,000,000$ 171,914,333$ Recurring Projects
Ocean Outfall Maintenance and Inspection - External RP 21002 154,225 230,000 - 230,000 143,945 86,055 - - 130,000 - 130,000 490,000 Ocean Outfall Bathymetric Survey - External RP 21005 - - - - - - 50,000 - - - - 50,000 Ocean Outfall - Internal Integrity Assessment RP 21006 - - - - - - 150,000 - - - - 150,000

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June 16, 2026
Item #6 Page 445 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 EWPCF – CAPITAL IMPROVEMENTS, FIVE-YEAR DETAIL
Project Name Status
Project
Number
Amount
Authorized1
Prior
Appropriation2 Transfers3
Total Prior
Appropriation
Total Prior
Expenditures4
Balance as of
Feb. 2026
FY 2026-27
Appropriation
FY 2027-28
Appropriation
FY 2028-29
Appropriation
FY 2029-30
Appropriation
FY 2030-31
Appropriation
Total
Appropriations
84-inch Outfall Inspection - Internal RP 21007 - - - - - - - - - - - - Digester Cleaning Cycle RP 32018 - - - - - - - 1,000,000 - 2,000,000 - 3,000,000 Exsiting Dryer Compenents Rehab RP 33025 614,860 660,194 - 660,194 614,860 45,334 - - - - - 660,194 Cogen Engine Top-End Overhaul RP 41005 2,082,303 2,085,534 - 2,085,534 2,082,303 3,231 - 400,000 400,000 - - 2,885,534 Cogen Engine In-Frame Overhaul RP 41006 - 875,000 - 875,000 - 875,000 875,000 - - - - 1,750,000 Cogen Engine Full Overhaul RP 41007 2,324,412 2,324,412 - 2,324,412 2,324,412 - - - - 950,000 950,000 4,224,412 ORF Carbon Media Replacement RP 51002 889,188 1,101,273 - 1,101,273 888,922 212,351 150,000 150,000 150,000 150,000 150,000 1,851,273 Plant-Wide Asset Painting and Protective Coating RP 52032 1,332,404 1,408,000 40,661 1,448,661 1,294,758 153,904 250,000 150,000 150,000 150,000 150,000 2,298,661 Site Security Facilities -Tier 2-4 RP 52047 137,470 450,000 - 450,000 115,881 334,119 - 100,000 100,000 - - 650,000 Implement Minor Condition Assessment Recommendations RP 54005 149,293 1,050,000 (900,707) 149,293 149,293 0 - - - - - 149,293 As-Needed Contractor Services RP 54006 3,619,365 4,279,712 13,715 4,293,427 3,422,072 871,355 - 500,000 500,000 500,000 500,000 6,293,427 Miscellaneous Building Rehabilitation RP 54007 426,727 527,616 (98,000) 429,616 426,272 3,344 50,000 50,000 50,000 50,000 50,000 679,616 As-Needed SCADA Integration Services RP 61514 1,271,615 1,505,222 - 1,505,222 1,358,555 146,667 230,000 230,000 230,000 230,000 230,000 2,655,222 Business Systems Improvements RP 62150 95,000 - 95,000 95,000 - 95,000 100,000 100,000 100,000 100,000 - 495,000 Host Server Replacement-IT RP 62705 228,020 440,000 (95,000) 345,000 - 345,000 - - 500,000 - - 845,000 Backup Host Servers RP 62707 - 100,000 - 100,000 - 100,000 - - - - - 100,000 Document Mangement System Upgrade RP 62708 671,092 995,643 - 995,643 689,707 305,936 - 20,000 20,000 20,000 20,000 1,075,643 Cyber Security and Business System Management Services RP 62709 635,779 894,357 - 894,357 631,186 263,171 - 150,000 150,000 150,000 150,000 1,494,357 Asset Condition Assessments RP 81016 99,457 247,285 (92,066) 155,219 99,457 55,762 50,000 50,000 50,000 50,000 50,000 405,219 E-CAMP Update/Condition Assessment RP 83001 617,567 843,319 (54,451) 788,868 617,567 171,301 - 250,000 - - - 1,038,868 Extension of Staff Engineering Services RP 84001 5,099,572 5,381,405 (148,150) 5,233,255 4,615,421 617,834 300,000 300,000 300,000 300,000 300,000 6,733,255 Research and Development Projects Services RP 84002 537,325 687,324 (121,818) 565,506 538,766 26,740 100,000 100,000 100,000 100,000 100,000 1,065,506 Air Permitting Assistance RP 84012 127,158 484,250 (170,000) 314,250 115,055 199,195 25,000 25,000 25,000 25,000 25,000 439,250 CMMS/Asset Management RP 84019 150,273 179,903 (62,739) 117,164 - 117,164 50,000 50,000 50,000 50,000 50,000 367,164 Total Recurring Projects 21,263,105$ 26,750,449$ (1,593,555)$ 25,156,894$ 20,128,433$ 5,028,461$ 2,380,000$ 3,625,000$ 3,005,000$ 4,825,000$ 2,855,000$ 41,846,894$ New Projects
Struvite NP 32025 - - - - - - 200,000 400,000 1,000,000 - - 1,600,000 Turbo Blower Upgrade NP 41022 - - - - - - 400,000 2,700,000 2,600,000 - - 5,700,000 Plant Water Functional Improvements NP 52006 - - - - - - 500,000 - - - - 500,000 Source Control Program Evaluation NP 82024 - - - - - - 85,000 - - - - 85,000 Total New Projects - $ -$ - $ -$ - $ - $ 1,185,000$ 3,100,000$ 3,600,000$ - $ -$ 7,885,000$ Future Projects
SC 7-Conversion from EQ to Clarifier FP 13008 - -$ - $ -$ - $ - $ - $ - $ - $ 890,000$ 2,669,000$ 3,559,000$ Digester 1, 2 & 3 Improvements FP 32020 - 350,000$ (350,000)$ -$ - $ - $ - $ 350,000 2,000,000 4,700,000 13,000,000 20,050,000$ Climate Change Action Plan Update FP 82023 - - - - - - - - 100,000 - - 100,000 SAN Replacement FP TBD - - - - - - - 200,000 - - - 200,000 Board Room Upgrades FP TBD - - - - - - - - 800,000 - - 800,000 Total Future Projects - $ 350,000$ (350,000)$ -$ - $ - $ - $ 550,000$ 2,900,000$ 5,590,000$ 15,669,000$ 24,709,000$ Total Unidentified Future Projects9 N/A - -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Subtotal Capital Improvements 109,459,935$ 125,111,227$ (0)$ 125,111,227$ 99,662,061$ 25,449,166$ 19,165,000$ 34,775,000$ 31,905,000$ 14,875,000$ 20,524,000$ 246,355,227$ Grant Funding6 -$ -$ -$ -$ -$ -$ (7,550,000)$ -$ (10,550,000)$ -$ -$ (18,100,000)$ Total Capital Improvements 109,459,935$ 125,111,227$ (0)$ 125,111,227$ 99,662,061$ 25,449,166$ 11,615,000$ 34,775,000$ 21,355,000$ 14,875,000$ 20,524,000$ 228,255,227$ In Progress IP 88,196,830$ 98,010,778$ 1,943,555$ 99,954,333$ 79,533,629$ 20,420,705$ 15,600,000$ 27,500,000$ 22,400,000$ 4,460,000$ 2,000,000$ 171,914,333$ Recurring Project RP 21,263,105 26,750,449 (1,593,555) 25,156,894 20,128,433 5,028,461 2,380,000 3,625,000 3,005,000 4,825,000 2,855,000 41,846,894 New Project NP - - - - - - 1,185,000 3,100,000 3,600,000 - - 7,885,000 Future Project FP - 350,000 (350,000) - - - - 550,000 2,900,000 5,590,000 15,669,000 24,709,000

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June 16, 2026
Item #6 Page 446 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 EWPCF – CAPITAL IMPROVEMENTS, FIVE-YEAR DETAIL
Project Name Status
Project
Number
Amount
Authorized1
Prior
Appropriation2 Transfers3
Total Prior
Appropriation
Total Prior
Expenditures4
Balance as of
Feb. 2026
FY 2026-27
Appropriation
FY 2027-28
Appropriation
FY 2028-29
Appropriation
FY 2029-30
Appropriation
FY 2030-31
Appropriation
Total
Appropriations
- - - - - - - - - - - Notes: (5,907,000) (3,533,000) (19,642,000) (10,754,000) -

1. Amount authorized represents Board of Director's appropriations/authorizations (>$100,000) and/or General Manager appropriations/authorization (<$100,000) and may be different than existing project appropriations due to the "cash flow" budgeting approach for projects.

2. Historical data based on available information from when Munis was implemented over 10 years ago.

3. Reflects transfers occuring after the FY 2025-26 published budget document and may include transfers to/from projects now closed. The transfers are due to project timining differences and in lieu of appropriation requests to minimize cash flow impacts.

4. Includes actual expenditures through mid-February 2025.

5. The estimated carryforward includes encumbrances and available balance through mid-February 2025 and may vary based on actual spending through fiscal year end.

6. Cogeneration Low Emission Augmentation & Retrofit (CLEAR) project offsets are currently anticipated from Investment Tax Credit (via the Inflation Reduction Act) and Self-Generation Incentive Program (via the California Public Utilities Commission) funds.

7. Represent prior projects with current activity not included in FY 2024-25 published budget document.

8. Partially offset by Federal grant revenues.

9. Represents anticipated expenditures based on historical experience that have not yet been assigned to a specific project.

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 EWPCF – CAPITAL IMPROVEMENTS, ESTIMATED CARRY FORWARD
Project Name
Project
Number
Total Prior
Appropriation1
Total Projected
Expenditures2
Estimated Carry
Forward3
FY 2026-27
Appropriation
Estimated
FY 2026-27
Appropriation⁴
Liquid Process (1xxxx)
PSB Mechanical Rehab - Short Term 12009 6,100,000$ 5,934,689$ 165,311$ 5,600,000$ 5,765,311$ Secondary Clarifiers and Strainers Improvements 13007 8,059,306 8,025,632 33,674 - 33,674 SC 7-Conversion from EQ to Clarifier 13008 - - Control Strategy Improvements 13019 200,000 170,000 30,000 - 30,000 Aeration Basin Minor Repairs (Diffuser Replacements) 13023 460,847 460,847 - - - RAS Box/IJS Rehabilitation 13024 401,046 133,452 267,594 - 267,594 Effluent Pump Station Discharge Piping Valves 14006 267,000 - 267,000 - 267,000 Total Liquid Process 15,488,199$ 14,724,620$ 763,579$ 5,600,000$ 6,363,579$ Outfall (2xxxx)
Ocean Outfall Maintenance and Inspection - External 21002 230,000$ 93,744$ 136,256$ - $ 136,256$ Ocean Outfall Bathymetric Survey - External 21005 - - - 50,000 50,000 Ocean Outfall - Internal Integrity Assessment 21006 - - - 150,000 150,000 84-inch Outfall Inspection - Internal 21007 - - 84-inch Outfall Repair 21009 150,000 79,993 70,007 - 70,007 Total Outfall 380,000$ 173,737$ 206,263$ 200,000$ 406,263$ Solids Process (3xxxx)
DAFT Repairs 31006 5,575,435$ 5,575,435$ - $ - $ -$ DAFT Repairs-Phase II 31010 1,350,000 566,148 783,852 1,000,000 1,783,852 Digester Rehabilitation and Improvements 32013 26,784,208 25,115,457 1,668,751 - 1,668,751 Digester Cleaning Cycle 32018 - - - - - Digester 1, 2 & 3 Improvements 32020 350,000 350,000 - - - Struvite 32025 - - - 200,000 200,000 Exsiting Dryer Compenents Rehab 33025 660,194 433,897 226,297 - 226,297 Dryer Safety Improvements 33026 1,951,042 1,943,761 7,281 - 7,281 Existing Dryer Major Rehabilitation 33030 2,261,016 261,182 1,999,834 500,000 2,499,834 Total Solids Process 38,931,895$ 34,245,880$ 4,686,015$ 1,700,000$ 6,386,015$

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June 16, 2026
Item #6 Page 448 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 EWPCF – CAPITAL IMPROVEMENTS, ESTIMATED CARRY FORWARD
Project Name
Project
Number
Total Prior
Appropriation1
Total Projected
Expenditures2
Estimated Carry
Forward3
FY 2026-27
Appropriation
Estimated
FY 2026-27
Appropriation⁴
Energy Management (4xxxx)
Cogen Engine Top-End Overhaul 41005 2,085,534$ 2,051,848$ 33,686$ - $ 33,686$ Cogen Engine In-Frame Overhaul 41006 875,000 875,000 - 875,000 875,000 Cogen Engine Full Overhaul 41007 2,324,412 2,324,412 - - - Cogen Low Emission Augmentaiton & Retrofit (CLEAR) 41015 7,819,829 7,590,786 229,043 500,000 729,043 Turbo Blower Upgrade 41022 - - - 400,000 400,000 Alternative Fuels Receiving Facility Improvements 41023 900,000 697,010 202,990 - 202,990 Automate Main Breakers in Cogen 41024 249,812 236,323 13,489 - 13,489 Energy Management Controls-CLEAR Project 41025 1,917,802 448,399 1,469,403 1,000,000 2,469,403 Total Energy Management 16,172,389$ 14,223,778$ 1,948,611$ 2,775,000$ 4,723,611$ General (5xxxx)
ORF I System Rehabilitation 51001 2,367,947$ 2,149,491$ 218,456$ 2,500,000$ 2,718,456$ ORF Carbon Media Replacement 51002 1,101,273 1,048,427 52,846 150,000 202,846 ORF II Treatment System Improvements 51014 836,879 833,077 3,802 - 3,802 Odor Control Improvements 51016 206,006 206,006 - - - Plant Water Functional Improvements 52006 - - - 500,000 500,000 Site Security Facilities-Tier 1 52012 840,438 585,733 254,705 - 254,705 Building Roof Replacement(Secondary, Chlorine, Headworks) 53013 2,625,000 2,549,398 75,602 - 75,602 Admin Building HVAC Rehab 53004 6,126,012 6,115,186 10,826 - 10,826 Plant-Wide Asset Painting and Protective Coating 52032 1,408,000 1,405,949 2,051 250,000 252,051 Flood Control Channel Restoration 52044 200,000 164,390 35,610 - 35,610 Site Security Facilities -Tier 2-4 52047 450,000 389,815 60,185 - 60,185 Dewatering Building Reabilitation (and Cogen Roof) 53015 1,000,000 325,000 675,000 - 675,000 Implement Minor Condition Assessment Recommendations 54005 1,050,000 626,044 423,956 - 423,956 As-Needed Contractor Services 54006 4,279,712 3,651,844 627,868 - 627,868 Miscellaneous Building Rehabilitation 54007 527,616 391,509 136,107 50,000 186,107 Total General 23,018,883$ 20,441,869$ 2,577,014$ 3,450,000$ 6,027,014$

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Item #6 Page 449 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 EWPCF – CAPITAL IMPROVEMENTS, ESTIMATED CARRY FORWARD
Project Name
Project
Number
Total Prior
Appropriation1
Total Projected
Expenditures2
Estimated Carry
Forward3
FY 2026-27
Appropriation
Estimated
FY 2026-27
Appropriation⁴
Technology (6xxxx)
Network Improvements5 61205 4,233,383$ 4,231,906$ 1,477$ - $ 1,477$ Secondaries & Effluent Electrical & Controls Improvements 61206 8,139,192 6,539,429 1,599,763 4,500,000 6,099,763 Cogen Electrical and Controls Improvements 61207 480,000 47,886 432,114 - 432,114 CPS/SEEPS Controls Improvements 61208 244,000 244,000 - - - Blower Controls Improvements 61209 276,778 276,774 4 - 4 Heat Dryer Controls Improvements 61210 900,000 80,776 819,224 - 819,224 Chlorine Building and EPS Electrical and Controls Improvements 61211 433,908 433,908 - - - Centrifuge & Ancillary Systems Control Improvements 61212 300,000 - 300,000 - 300,000 Load Shed Controls Improvements 61214 41,737 41,737 - - - As-Needed SCADA Integration Services 61514 1,505,222 1,438,529 66,693 230,000 296,693 Business Systems Improvements 62150 - (66,693) 66,693 100,000 166,693 Host Server Replacement-IT 62705 440,000 440,000 - - - Host Server Replacement-OT 62706 350,000 268,941 81,059 - 81,059 Backup Host Servers 62707 100,000 100,000 - - - Document Mangement System Upgrade 62708 995,643 941,522 54,121 - 54,121 Cyber Security and Business System Management Services 62709 894,357 877,974 16,383 - 16,383 IT Business Network Conversion 62710 500,000 330,000 170,000 - 170,000 Total Technology 19,834,220$ 16,226,689$ 3,607,531$ 4,830,000$ 8,437,531$ Professional Services (8xxxx)
Facility Master Plan Update 80827 100,000$ 2,685$ 97,315$ - $ 97,315$ Asset Condition Assessments 81016 247,285$ 191,524 55,761$ 50,000$ 105,761 Potable Reuse Study6 82015 2,082,055 2,081,465 590 - 590 Energy Resilience Assessment 82020 592,319 571,364 20,955 - 20,955 Potable Reuse Strategic Plan 82022 249,916 162,489 87,427 - 87,427 Climate Change Action Plan Update 82023 - - - - - Source Control Program Evaluation 82024 - - - 85,000 85,000 OT Plan Update 82025 100,000 33,381 66,619 - 66,619

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Item #6 Page 450 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 EWPCF – CAPITAL IMPROVEMENTS, ESTIMATED CARRY FORWARD
Project Name
Project
Number
Total Prior
Appropriation1
Total Projected
Expenditures2
Estimated Carry
Forward3
FY 2026-27
Appropriation
Estimated
FY 2026-27
Appropriation⁴
Heat Dryer HAZOP 82028 75,000 - 75,000 - 75,000 IT Plan Update 82030 100,000 59,670 40,330 - 40,330 E-CAMP Update/Condition Assessment 83001 843,319 730,443 112,876 - 112,876 Extension of Staff Engineering Services 84001 5,381,405 4,866,744 514,661 300,000 814,661 Research and Development Projects Services 84002 687,324 637,324 50,000 100,000 150,000 Electronic Operations Man & Doc Mgt 84008 162,865 158,489 4,376 - 4,376 Air Permitting Assistance 84012 484,250 132,128 352,122 25,000 377,122 CMMS/Asset Management 84019 179,903 29,903 150,000 50,000 200,000 Total Professional Services 11,285,641$ 9,657,609$ 1,628,032$ 610,000$ 2,238,032$ Total Unidentified Future Projects7 N/A -$ - $ - $ - $ -$ Total Capital Improvements 125,111,227$ 109,694,182$ 15,417,045$ 19,165,000$ 34,582,045$ Notes:

1. Historical data based on available information from when Munis was implemented over 10 years ago.

2. Includes estimated expenditures through June 2026. Actual expenditures through June 2026 will vary.

3. The estimated carryforward includes encumbrances and may vary based on actual spending through fiscal year end.

5. Represent prior projects with current activity not included in FY 2024-25 published budget document.

6. Partially offset by Federal grant revenues.

7. Represents anticipated expenditures based on historical experience that have not yet been assigned to a specific project.

4. Amounts shown here represent the FY 2026-27 Appropriation plus Estimated Carry Forward. The actual carry forwards plus FY 2026-27 Appropriations will vary

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27 Fiscal Year
EWPCF
Capital
Improvements
Grant Funding1,2
EWPCF
Planned Asset
Rehabilitation &
Replacement
EWPCF
Capital Acquisitions
Remote Facilities
Acquisitions &
Rehabilitation
Personnel
Expense Total3
2027 19,165,000$ (7,550,000)$ 1,656,000$ 505,000$ 1,162,000$ 2,806,979$ 17,744,979$ 2028 34,775,000$ -$ 1,706,000$ 509,000$ 1,174,000$ 2,905,000$ 41,069,000$ 2029 31,905,000$ (10,550,000)$ 1,757,000$ 524,000$ 1,186,000$ 3,007,000$ 27,829,000$ 2030 14,875,000$ -$ 1,810,000$ 540,000$ 1,198,000$ 3,112,000$ 21,535,000$ 2031 20,524,000$ -$ 1,864,000$ 556,000$ 1,210,000$ 3,221,000$ 27,375,000$ 5 Year Total 121,244,000$ (18,100,000)$ 8,793,000$ 2,634,000$ 5,930,000$ 15,051,979$ 135,552,979$

2032 21,139,720$ -$ 1,920,000$ 573,000$ 1,222,000$ 3,334,000$ 28,188,720$ 2033 21,773,912$ -$ 1,978,000$ 590,000$ 1,234,000$ 3,451,000$ 29,026,912$ 2034 22,427,129$ -$ 2,037,000$ 608,000$ 1,246,000$ 3,572,000$ 29,890,129$ 2035 23,099,943$ -$ 2,098,000$ 626,000$ 1,258,000$ 3,697,000$ 30,778,943$ 2036 23,792,941$ -$ 2,161,000$ 645,000$ 1,271,000$ 3,826,000$ 31,695,941$ 2037 - 2041 113,600,000$ -$ 11,820,000$ 3,527,000$ 6,550,000$ 21,235,000$ 156,732,000$ 2042 - 2046 113,600,000$ -$ 13,702,000$ 4,089,000$ 6,881,000$ 25,219,000$ 163,491,000$ 20 Year Total 460,677,644$ (18,100,000)$ 44,509,000$ 13,292,000$ 25,592,000$ 79,385,979$ 605,356,623$

3. Future year costs are shown in current year dollars.

LONG-TERM CAPITAL FINANCIAL PLAN
5 YEAR and 20 YEAR CAPITAL BUDGET

1. Project offsets are currently anticipated from the Investment Tax Credit program ("ITC" via the Inflation Reduction Act) for the recently completed Digester Rehabilitation & Improvements project. Based on the most recent data from Baker Tilly, which uses project estimates from January 2025 and assumes a project "without domestic content," ~$7.55M in ITC funding is possible for the digester project. Encina plans on applying for the ITC funding around May 2026. If funding is received, it is anticipated to be received during Fiscal Year 2026-27.

2. Cogeneration Low Emission Augmentation & Retrofit (CLEAR) project offsets are currently anticipated from the Investment Tax Credit program ("ITC" via the Inflation Reduction Act) and Self-Generation Incentive Program (via the California Public Utilities Commission) funds. Based on the most recent data from Baker Tilly, which uses project estimates from January 2025 and assumes a project "without domestic content," ~$9.40M in ITC funding is possible for the CLEAR project. Based on Encina's SGIP application, ~$1.15M may be available for the CLEAR project. If grant funding is received, it is anticipated to be received upon completion of the project.

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 ENCINA WASTEWATER AUTHORITY Budget | Fiscal Year 2026-27

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26

APPENDIX
Member Agency Resolutions
Appropriation & Controls Resolution
Salary & Benefit Resolution

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 Exhibit 12
RESOLUTION NO. 2026-125 .

A RE

SOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, DETERMINING THAT THE F ISCAL YEAR 2026-27 CAPITAL

IMPROVEMENT PROGRAM IS CONSISTENT WITH THE GENERAL PLAN

AND APPLICABLE CLIMATE ACTION PLAN MEASURES AND ACTIONS WHE
REAS, the City Council of the City of Carlsbad, California, has reviewed the Capital Improvement Program for fiscal year (FY) 2026-27 and has held such public hearings as are necessary prior to adoption of the Capital Improvement Program; and WHEREAS, on June 16 , 2026, the City Council reviewed for consistency with the General Plan goals and policies all Capital projects receiving an allocation of funds for FY 2026- 27 pursuant to Carlsbad Municipal Code Section 2.24.040(B); and
WHEREAS, the City Council also reviewed the FY 2026- 27 Capital Improvement Program projects for consistency with applicable Climate Action Plan measures and actions; and WHEREAS, upon hearing and considering all testimony and arguments, if any, of all persons desiring to be heard, the City Council considered all factors relating to the City Council determination.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:

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 in the Capital Improvement Program may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines.

3. That based on the evidence presented at the hearing, the City Council determines that the Capital Improvement Program for FY 202 6-27 is consistent with the General Plan based on the following findings:
a. The projects are consistent with the goals and policies of the city’s General Plan in that the projects are required to ensure the provision of adequate public facilities and services concurrent with or prior to need.

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 b. The projects are consistent with applicable goals and policies of the Arts, History, Culture, and Education; Land Use and Community Design; Mobility; Public Safety; and Sustainability Elements, as described in Attachment A. c. Specific projects are consistent with, and support Climate Action Plan greenhouse gas reduction measures and actions, if applicable, as described in Attachment A. d. As required by the General Plan, the proposed improvements are consistent with the city’s Growth Management Plan in that the projects ensure that the necessary improvements are provided for facilities maintenance, park development, recycled water, sewer and storm drain projects, and circulation systems, in accordance with the performance standards contained in the city’s Growth Management regulations.

4. This action is final as of the date this resolution is adopted by the City Council. The Provisions of Chapter 1.16 of the Carlsbad Municipal Code, “Time Limits for Judicial Review” shall apply:
“NOTICE”
The time within which judicial review of this decision must be sought is governed by Code of Civil Procedure, Section 1094.6, which has been made applicable in the City of Carlsbad by Carlsbad Municipal Code Chapter 1.16. Any petition or other action seeking review must be filed in the appropriate court not later than the ninetieth day following the date on which this decision becomes final; however, if within ten days after the decision becomes final a request for the record is filed with a deposit in an amount sufficient to cover the estimated cost or preparation of such record, the time within which such petition may be filed in court is extended to not later than the thirtieth day following the date on which the record is either personally delivered or mailed to the party, or his attorney of record, if he has one. A written request for the preparation of the record of the proceedings shall be filed with the City Clerk, City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad, CA 92008.

June 16, 2026
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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 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)
June 16, 2026
Item #6 Page 457 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26

NEW CAPITAL IMPROVEMENT PROJECTS
Batiquitos Lift Station Improvements
Council District: 4
Managing Department: Utilities
Budget Category: Maintenance
Funding Source: Sewer Replacement
Budget
FY27 $400,000 Conceptual Design
FY28 $500,000 Final Design
FY29 $9,000,000 Construction
TOTAL $9,900,000
Abo
ut This Project
The project includes upgrades to the lift station to replace aging electrical, mechanical and structural facilities and to accommodate future pump flow capacity.

Project Need
Lift station upgrades are needed to replace aging facilities and electrical controls, and to accommodate anticipated development expansion in the area in accordance with current city standards.

Ge
neral Plan Consistency
Goal 2-G.2 of the Land Use and Community Design Element: Promote a diversity of compatible land uses throughout the city…and public support systems such as…utilities.

Goal 2-G
.21 of the Land Use and Community Design Element: Ensure that adequate public facilities and services are provided in a timely manner to preserve the quality of life of residents.

Po
licy 6-P.73 of the Public Safety Element: Ensure all new development complies with all applicable regulations regarding the provision of public utilities and facilities.

Climat
e Action Plan Consistency
This project is consistent with Climate Action Plan Measure W-1 (Wastewater System Improvements).

Anticipated Environmental Review
The level of environmental review and any potential environmental impacts will be determined upon further analysis. Depending on site conditions, the extent of work, and scope of work, the environmental review could range from a CEQA exemption (project is exempt from environmental review) to a Mitigated Negative Declaration (project has environmental impacts that can be mitigated).

Attachment A
June 16, 2026
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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 Chinquapin Lift Station Force Main
Improvements

Council District: 1
Managing Department: Utilities
Budget Category: Maintenance
Funding Source: Sewer Replacement

Budget
FY28 $200,000 Conceptual Design
FY29 $300,000 Final Design
FY30 $2,500,000 Construction

TOTAL $3,000,000

About This Project
The project will construct 800 lineal feet of new 6-inch force main to provide a redundant outfall for the lift station.

Project Need
Carlsbad engineering standards require sewer lift stations to have dual force mains. The Chinquapin Lift Station currently only has one force main and requires an additional outfall to fulfill the operational redundancy requirements of the engineering standards.

General Plan Consistency
Goal 2-G.2 of the Land Use and Community Design Element: Promote a diversity of compatible land uses throughout the city…and public support systems such as…utilities.

Goal 2-G.21 of the Land Use and Community Design Element: Ensure that adequate public facilities and services are provided in a timely manner to preserve the quality of life of residents.

Policy 6-P.73 of the Public Safety Element: Ensure all new development complies with all applicable regulations regarding the provision of public utilities and facilities.

Climate Action Plan Consistency
This project is consistent with Climate Action Plan Measure W-1 (Wastewater System Improvements).

June 16, 2026
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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 Chinquapin Sewer Improvements

Council District: 1
Managing Department: Utilities
Budget Category: Maintenance
Funding Source: Sewer
Connection

Budget
FY27 $50,000 Final Design
FY28 $960,000 Construction

TOTAL $1,010,000

About This Project
The project will install 250 lineal feet of 8-inch gravity sewer and replace 350 lineal feet of 6-inch gravity sewer with 10-inch gravity sewer in Chinquapin Avenue.

Project Need
The project is needed to redirect sewer flow from Chinquapin Sewer Lift Station to the Vista-Carlsbad Sewer Interceptor to mitigate downstream impacts.

General Plan Consistency
Goal 2-G.2 of the Land Use and Community Design Element: Promote a diversity of compatible land uses throughout the city…and public support systems such as…utilities.

Goal 2-G.21 of the Land Use and Community Design Element: Ensure that adequate public facilities and services are provided in a timely manner to preserve the quality of life of residents.

Policy 6-P.73 of the Public Safety Element: Ensure all new development complies with all applicable regulations regarding the provision of public utilities and facilities.

Climate Action Plan Consistency
This project is consistent with Climate Action Plan Measure W-1 (Wastewater System Improvements).

Anticipated Environmental Review
The level of environmental review and any potential environmental impacts will be determined upon further analysis. Based on preliminary information, the project is intended to redirect existing sewer flow rather than expand capacity, and may qualify for a categorical exemption under CEQA Guidelines Section 15301. However, depending on site conditions, the extent of work, and scope of work, the environmental review could range from a CEQA exemption (project is exempt from environmental review) to a Mitigated Negative Declaration (project has environmental impacts that can be mitigated).

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 Dove Library Central Plant Refurbishment

Council District: 3
Managing Department: Facilities
Budget Category: Maintenance
Funding Source: Infrastructure
Replacement

Budget
FY27 $200,000 Scoping
FY28 $1,400,000 Construction

TOTAL $1,600,000

About This Project
The project will refurbish the Central Plant at the Dove Library.

Project Need
The central plant is at the end of its useful life and needs replacement.

General Plan Consistency
Policy 7-P.24 of the Arts, History, Culture, and Education Element: Provide adequate library facilities and programs that align with the community’s learning needs, abilities and demographics, and changes in technology, such as through facility design, services and service delivery methods, and partnerships with educational and learning institutions.

Climate Action Plan Consistency
At the time of review, staff were not aware what type of equipment would be used to replace the central plant. Action E-1.c in the Climate Action Plan is to “eliminate natural gas at city facilities, where feasible.” This should be kept in mind as staff move forward with this effort.

Anticipated Environmental Review
The proposed action for refurbishment of the existing central plant at Dove Library is likely categorically exempt from environmental review under CEQA Guidelines Section 15301 because it involves the maintenance, repair, or minor alteration of existing facilities with negligible or no expansion of the existing or former use. No exceptions to the categorical exemption as set forth in CEQA Guidelines Section 15300.2 or Carlsbad Municipal Code Section 19.04.070(C) are likely to apply.

June 16, 2026
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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 Leo C arrillo Ranch S tair R eplacement

Council District: 2
Managing Department: Facilities
Budget Category: Maintenance
Funding Source: Park-In-Lieu SE

Budget
FY27 $500,000 Construction

TOTAL $500,000

About This Project
The project will replace the existing three staircases at Leo Carillo Ranch Historic Park.

Project Need
The project will make the stairs safer with flat stones instead of the current uneven rocks and raised "red carpet."

General Plan Consistency
Goal 4-G.6 of the Open Space, Conservation, and Recreation Element: Offer a wide variety of recreational activities and park facilities designed to encourage educational benefits and active or passive participation by users of all ages and interests

Climate Action Plan Consistency
Not applicable.

Anticipated Environmental Review
The proposed action for replacement of existing staircases at Leo Carrillo Ranch Historic Park may qualify for a categorical exemption from environmental review under CEQA Guidelines Section 15301; however, prior to any discretionary action, a determination must be made as to whether the project would cause a substantial adverse change in the significance of a historical resource pursuant to CEQA Guidelines Section 15064.5. If the project is found to have no adverse effect on the historic resource, a categorical exemption may apply. If an adverse effect is identified, additional environmental review will be required.

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 Water System Improvements

Council District: Citywide
Managing Department: Utilities
Budget Category: Maintenance
Funding Source: Water Connection

Budget
FY27 $500,000 Design
FY28 $6,000,000 Construction
FY29 $500,000 Design
FY30 $6,000,000 Construction

TOTAL $13,000,000

About This Project
The project will upsize various water pipeline segments to provide capacity in accordance with CMWD's design standards and Water Master Plan.

Project Need
Water system improvements to the distribution system will be identified in the Water Master Plan update and ongoing system optimization evaluations.

General Plan Consistency
Goal 2-G.2 of the Land Use and Community Design Element: Promote a diversity of compatible land uses throughout the city…and public support systems such as…utilities.

Goal 2-G.21 of the Land Use and Community Design Element: Ensure that adequate public facilities and services are provided in a timely manner to preserve the quality of life of residents.

Policy 6-P.73 of the Public Safety Element: Ensure all new development complies with all applicable regulations regarding the provision of public utilities and facilities.

Climate Action Plan Consistency
This project is consistent with Climate Action Plan Measure W-2 (Water System Improvements).

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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 Exhibit 13
RESOLUTION NO. 2026-126
A RE

SOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,

CALIFORNIA, ADOPTING A LIST OF PROJECTS AND AUTHORIZING THE

ALLOCATION OF ROAD MAINTENANCE AND REHABILITATION ACCOUNT

FUNDS TO THE PAVEMENT MANAGEMENT AND CONCRETE REPLACEMENT PROGRAMS FOR FISCAL YEAR 2026-27
WHE
REAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the state legislature and signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the city residents are aware of projects proposed for funding in our community as well as those projects that have been completed each fiscal year; and
WHEREAS, the city must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account, or RMRA, created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, staff estimate the city will receive $3,265,115 in RMRA funding during fiscal year (FY) 2026-27 from SB1; and
WHEREAS, a fu nd balance of $ 724,371 of unallocated funding exists, which when added with the FY 2026-27 estimated revenue projection of $3,265,115 results in a total R MRA funding of $3,989,486; and
WHEREAS, this will be the tenth year in which the city is receiving SB 1 funding, which will enable the city to continue essential road maintena nce and rehabilitation projects thereby increasing access and mobility options for the travelling public; and
WHEREAS, the city has undergone a robust public process to solicit public input into the community’s transportation priorities as part of the Capital Improvement Program, or CIP, approval process; and
WHEREAS, the city utilizes a pavement management system to develop the SB 1 project list to ensure that RMRA revenues are being used in a prioritized and cost-effective manner; and WHEREAS, the funding from SB 1 will help the city maintain and rehabilitate its network of roads and provide concrete improvements and similar projects in the future; and June 16, 2026
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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 W HEREAS, the 2023 California Statewide Local Streets and Roads Needs Assessment found that the city’s streets and roads are in a good condition , and this revenue will help the city increase the overall quality of its road system; and
WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety will have a significant benefit to the community.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:

1. That the above recitations are true and correct.

2. Th at the proposed action is not a “project” as defined by C alifornia 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 projects utilizing RMRA funding may require preparation of an environmental document in accordance with CEQA and CEQA Guidelines.

3. That the previously proposed and adopted Pavement Management Program, CIP Project No. 6001, as further described herein, will be funded in part with FY 2026-27 R MRA revenues. With the relisting of this project in the adopted fiscal year resolution, the city is reaffirming to the public and the State the intent to partially fund these projects with RMRA revenues:
a. Project Title: Pavement Resurfacing Project 2026
b. Description: resurface and rehabilitate a selection of publicly maintained streets on an annual basis
c. Location: various residential streets throughout the city based on pavement condition, including the following collector and arterial streets:
i. El Camino Real between Levante Street and Calle Barcelona ii. El Camino Real between Chestnut Avenue and Tamarack Avenue iii. Palomar Airport Road between Paseo del Norte and El Camino Real d. Estimated Project Schedule: July 2025 – Aug. 2027
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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 e. Estimated Useful Life: slurry seal has a useful life of approximately seven years, and asphalt concrete overlay has a useful life of approximately 20 years

4. That the Pavement Management Program, CIP Project No. 6001, as further described herein, will be funded in part with FY 2026-27 RMRA revenues:
a. Project Title: Pavement Resurfacing Project 2027
b. Description: resurface and rehabilitate a selection of publicly maintained streets on an annual basis
c. Location: various residential streets throughout the city based on pavement condition, including the following collector and arterial streets:
i. Palomar Airport Road from El Camino Real to Melrose Drive ii. Cannon Road from El Camino Real to College Boulevard iii. Carlsbad Blvd from northern city limits to Mountain View Drive iv. Carlsbad Blvd from Avenida Encinas to southern city limits v. El Camino Real from Haymar Drive to Marron Road
d. Estimated Project Schedule: June 2027 – Aug. 2028
e. Estimated Useful Life: slurry seal has a useful life of approximately seven years, and asphalt concrete overlay has a useful life of approximately 20 years

5. That t he Concrete Repair/Replacement Program, CIP Project No. 6013, as further described herein, will be funded in part with FY 2026-27 RMRA revenues:
a. Project Title: Concrete Repair/Replacement Project 2027 b. Description: repair and replace broken and uplifted concrete in the right of way c. Location: various residential locations throughout the city based on concrete condition, including locations along the following collector and arterial streets:
i. Cannon Road from El Camino Real to College Boulevard ii. Carlsbad Blvd from northern city limits to Mountain View Drive iii. Carlsbad Blvd from Avenida Encinas to southern city limits d. Estimated Project Schedule: June 2027 – Dec. 2027
e. Estimated Useful Life: concrete improvements typically have a useful life of approximately 20 to 40 years
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6. That funding to allocate R MRA funding in the amount of $2, 997,000 to the Pavement Management Program, CIP Project No. 6001, and $ 395,000 to the Concrete Replacement Program, CIP Project No. 6013 wa s incorporated into the in the FY 202 6- 27 CIP budget.

PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of Directors of the 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, Mayor
_______
_______________________________
SHERRY FREISINGER, City Clerk
(SEAL)
June 16, 2026
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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26

Exhibit 14
RESOLUTION NO. 2026-127
A RES

OLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ADOPTING AMENDMENTS TO CITY COUNCIL POLICY NO. 95 –

COST RECOVERY POLICY FOR FEES AND CHARGES FOR SERVICES
WHER
EAS, on March 14, 2023 , the City Council adopted City Council Policy No. 95 – Cost Recovery Policy for Fees and Charges for Services to set forth cost recovery targets, timelines for fee increases and annual cost inflation adjustments, and frequency for comprehensive review for all city fees and service charges; and
WHEREAS, on June 18, 2024, the City Council amended City Council Policy No. 95 to reflect current cost recovery needs and to reiterate limits on certain fees charged by the Utilities Department; and
WHEREAS, the city has completed a comprehensive cost of service study update that was presented to the City Council on May 19, 2026; and
WHEREAS, this comprehensive cost of service study update identified many city fee activities recovering costs below their appropriate range outlined in City Council Policy No. 95; and WHEREAS, phasing in proposed changes in these fee levels over several years may be recommended or necessary; and
WHEREAS, amendments to City Council Policy No. 95 are necessary to allow any such changes to be made over a period greater than three years.

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 th e proposed action to amend City Council Policy No. 95 is exempt from environmental review under California Environmental Quality Act, or CEQA, Guidelines Sections 15061(b)(3) and 15378(b)(5) as it can be seen with certainty that there is no possibility the proposed action may have a significant effect on the environment.

3. That the City Council adopts the amendments to City Council Policy No. 95 as reflected in Attachment A.

June 16, 2026
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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of Directors of the Carlsbad Public Financing Authority, the Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 16th day of June, 202 6, by the following vote, to wit:

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

NAYS: None.

ABSTAIN: None.

ABSENT: None.
_____________
_________________________
KEITH BLACKBURN, Mayor
_____________
_________________________
SHERRY FREISINGER, City Clerk
(SEAL)
June 16, 2026
Item #6 Page 469 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26

Attachment A
Policy No. 95
Date Issued
Resolution No.

Subject: Cost Recovery Policy for Fees and Charges for Services Purpose
It is important f
or the city to have a sound and consistent cost recovery policy that will serve as a management tool for establishing, implementing, and evaluating fees and charges.1 This policy ensures that the city’s fees and charges are managed in a manner that will:
• Provide for the delivery of quality services
• Maintain and enhance service delivery
• Support a balanced budget through evaluation and review of the city’s total estimated and reasonable cost of providing services
• Set fee amounts in accordance with local goals as pertains to code compliance, cost recovery, economic development, and community values
• Ensure that any action to establish, increase, or impose a fee is conducted in a manner that satisfies the requirements of state law
The City of Carlsbad i
s authorized to adopt and implement fees and charges for certain municipal services, provided the fees and charges do not exceed the reasonable cost of providing such services. This policy sets forth cost recovery targets, timelines for fee increases, annual cost inflation adjustments, and frequency of comprehensive review for all city fees and charges.

Background
The city’s
fees for services, products, and regulatory activities are not taxes requiring voter approval under California State Constitution, Article XIII C, Section 1 (a voter initiative added by Proposition 218 and amended by Proposition 26) if the fees do not exceed the reasonable cost of the services, products or regulatory activities. In addition to the Constitution, state and local laws also provide authorization to charge fees for services. For example, Government Code 66014 governs many fees as it pertains to development approvals. The language of Government Code 66014 mirrors the reasonable cost limitation expressed by the Constitution.

This policy addresses
all city fees and charges included in the city’s Master Fee Schedule, with a few exceptions. Fees for services not subject to this policy typically require different analyses and adoption processes than the fees that are subject to this policy. 1 The policy, as it applies to Carlsbad Municipal Water District fees and housing services fees, was approved by the Board of Directors of Carlsbad Municipal Water District of the City of Carlsbad on June 16, 2026, by Resolution No. 1809 and the Community Development Commission on June 16, 2026, by Resolution No. 584.

Page 1 of 7 ends

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2026-127
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 City Council Policy Statement
June 16, 2026

Page 2 ends

Subject to this Policy

Not Subject to this Policy
• Miscellaneous administrative
fees
• Special events fees
• Streetlight energizing fees
• City Clerk’s Office fees
• Library fees
• Fire fees:
o Fire extinguishing and
alarm systems permit fees
o Annual inspections and
fire code permits
o Other fire fees
• Fees for development
applications, including
entitlements, plan review, permit
issuance, inspections
• Police administrative and service
fees
• Utility account fees for
residential customers
• Fees charged on an hourly, time
and materials, or actual cost of
service basis
• Permit fees required to operate a
business
• Any fees prohibited by law from
exceeding the reasonable cost of
providing services
• Deposits and securities
• Safety Training Center facility fees
• All fees for rental or use of city facilities
and/or equipment
• Administrative citation penalties
• Vehicle, traffic and parking civil penalties
• Development impact fees, utility
connection fees
• Trash collection rates
• Fees set through contracts with third-
party vendors
• Water and wastewater service rates and
property related fees and taxes governed
by Proposition 218
• Utility services fees, recycled water and
wastewater fees, third party hydraulic
modelling fees, and other utility fees
• Fees set by external agencies
• Other monetary exactions imposed on a
project on an ad hoc basis in connection
with the approval of a development
project
• Business license taxes
• Emergency medical services, paramedic
and ambulance fees
• Parks & Recreation and Library & Cultural
Arts program and class fees
2 • All fees for services set by state or federal
statute

Statement of policy
It is the policy of the City of Carlsbad that the following guidelines will be used in establishing and maintaining fees and charges:

1. Revenues for individual fees and in aggregate for any fee program shall not exceed the reasonable cost of providing services.

2 Resolutions No. 2008-192 and No. 2015-173 authorized the City Manager or a designee to set all fees included in the Community Services Guide provided that fees both do not exceed the cost of providing the program and that these fees are no lower than the lowest fee charged for similar programs in the cities of Oceanside, Vista, San Marcos, Escondido, or Encinitas.

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Page 3 ends

2. Comprehensive review of all city fees and charges shall occur every five to seven years.

3. In certain circumstances where cost recovery may be unrealistic or undesirable, the City Council may subsidize a portion of or an entire fee program and/or individual fees.

4. In certain circumstances where immediate adjustments to full cost recovery may be impractical, it may be appropriate to phase in fee increases over multiple years.

5. The procedures for adopting fees for development applications or projects shall follow the procedures for adopting various fees provided by Government Code sections 66016- 66019, or other applicable law, and shall be effective no sooner than 60 days following the final action.

6. Fees and charges should be sensitive to the “market” for similar services.

7. A unified approach should be used in determining cost recovery levels for various programs and their individual fees and charges based on this policy.

• The level of cost recovery should consider the degree to which the public benefits from the service versus the degree to which the user of the service themselves benefits. • The level of cost recovery should consider how the pricing of services can affect the demand and subsequent level of services provided.

Based on the consideration of factors that influence cost recovery policy, the degree to which pricing for services recovers the city’s costs of providing the service will vary. • Low-level cost recovery services should aim to recover between 0%-30% of their costs.

These include services where there is no intended relationship between the fee and the benefit received, that are essential to community safety, or for services where collecting fees would discourage compliance.
• Mid-level cost recovery services should aim to recover between 31%-80% of their costs.

These include services where the specific user of the service receives a higher level of benefit than the general taxpayer, but where the city has an interest in encouraging compliance by subsidizing the cost of the service.
• High-level cost recovery services should recover between 81%-100% of their costs.

These include services where the individual primarily and directly benefits from the service, not the community at large. These may be services that could otherwise be provided by the private sector or use of the service is not encouraged.

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Service/Program Cost Recovery
Target
Pricing Strategy
General and Administrative Fees – Finance, Clerk, City Manager Appeals to City Council MID (31%-80%) Both individual and community benefit from
the service
Business license master list of new/active
licenses
HIGH (81%-100%) Individual benefit received
from the service
Community facilities district annexation
services
HIGH (81%-100%) Individual benefit received
from the service
Miscellaneous services where amount of the
fee is not set by state or federal statute
HIGH (81%-100%) Individual benefit received
from the service
Special Events Fees
City-sponsored special events. Special
events sponsored by the city or a non-profit
organization with a community-wide benefit
that are free and open to the public
LOW (0%-30%) Community primarily
benefits from the service
Special events that are open to the public
where admission or fees for participation
are not charged
MID (31%-80%) Both the event sponsor
and the community benefit
from the service
Special events where admission is ticketed
or fees for participation are charged
HIGH (81%-100%) Individual benefit received
from the service
Library Fees
Library card replacement, hold requests,
interlibrary loans, general day-to-day service
fees
LOW (0%-30%) Community primarily
benefits from the service
Refund processing initiated by customer LOW (0%-30%) Community primarily benefits from the service
Fire Fees
Fire code permits, annual occupancy
regulatory inspections (both state-
mandated and non-mandated)
MID (31%-80%) Both individual and
community benefit from
the service
Fire/life safety plan check and inspection
fees for development services (e.g.,
sprinkler, alarms, new construction)
MID (31%-80%) Individual benefit received
from the service. Fees
should generally be set at
the higher end of the mid-
range

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Police Fees
Patrol and general enforcement services MID (31%-80%) Community primarily benefits from the service
Copies of reports for victims of crimes MID (31%-80%) Ensure access to valuable service
All fees for records management, towing, or
other items which are not limited per state
or federal statute
MID (31%-80%) Individual benefit received
from the service, or fee is
administrative as pertains
to a violation of code/law
Utility Administrative Fees
New account set up, reinstating of service
for delinquent accounts to the extent not
limited by SB 998,
3 all other fees subject to
this policy

MID (31%-80%) Individual benefit received
from the service
Land Development Permitting & Inspection Services
Discretionary Entitlement Permit (review
and processing, including but not limited to
general plan amendment, rezone, local
coastal plan amendment, conditional use
permit, coastal development permit, site
development plan)
HIGH (81%-100%)
Individual directly
benefiting from the
permitted action pays a
majority, if not all the
permit processing costs
Minor Discretionary Permit (review and
processing, including but not limited to
permits that are more administrative in
nature (i.e., accessory dwelling units))
LOW (0%-30%)
Ensure compliance with
essential regulatory codes
and standards by
minimizing the permit
application costs
Ministerial Permit (review and processing,
including but not limited to building,
grading, map, and improvement plan)
HIGH (81%-100%)
Individual directly
benefiting from the
permitted action pays a
majority, if not all the
permit processing costs

3 SB 998 limits the amount that qualifying low-income residential water customers must pay for service reconnections after shutoff to $50 during normal business hours and $150 after normal business hours. These figures are subject to annual inflationary adjustments for changes in the Consumer Price Index. See California Health and Safety Code 116914. Details for residential water customers are available in the Carlsbad Municipal Water District’s Residential Water Service Shutoff Protection Policy for Nonpaym ent of Charges.

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Minor Ministerial Permit (review and
processing, including but not limited to
minor commercial or industrial tenant
improvements, adjustment plats, right-of-
way use or encroachment agreements)
MID (31%-80%)
Ensure compliance with
essential regulatory codes
and standards by
minimizing the permit
application costs
Administrative Ministerial Permit (review
and processing, including but not limited to
minor and/or routine residential repairs
LOW (0%-30%)
Ensure compliance with
essential regulatory codes
and standards by
minimizing the permit
application costs
Permit Inspection Services HIGH (81%-100%)
Individual directly
benefiting from the
permitted action pays a
majority, if not all the
permit processing costs

Procedures
This Cost Recovery Policy establishes a scheduled program to comprehensively review the fee schedule to determine if the current fee amounts are reflective of the costs to provide such services and are consistent with best practices and statutory requirements. • A comprehensive analysis of city service delivery costs associated with fees and charges shall be made approximately every five to seven years.
• Off-cycle updates will occur annually, where fees will be adjusted by a percentage equal to the change in the San Diego Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics or another reasonable inflationary factor. • Individual fees may be adjusted during the interim period based on supplemental analysis whenever there have been significant changes in costs. • The City Council shall have the opportunity to review and the authority to approve any changes to the Master Fee Schedule.
• The City Council may decide to increase fees over a period of five years in certain circumstances where immediate adjustments to targeted cost recovery amounts may be unrealistic. In exceptional cases, city staff may recommend that the City Council consider a phase-in period exceeding five years to achieve targeted cost recovery rates.

Comparability with Other Communities
Comparing the city’s fees to other communities provides useful background information in setting fees. It allows the city to assess the market price of the service as compared to other agencies as well as to learn about alternative methods of charging fees for certain services.

However, fee surveys should never be the sole or primary criteria in setting city fees as there are many factors that affect how and why other communities have set their fees at their levels.

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Terms and Limitations

1. All rights and obligations existing under any user fee schedule in effect prior to the effective date of a resolution approving a user fee update, shall continue in full force and effect. Updates to user fee schedules should not affect or disrupt the continuity of the city’s business or administration of its law, including:
• Actions and proceedings that began before the effective date of the resolution. • Prosecution for ordinance violations committed before the effective date of the resolution.
• The amount, or collection, of license, fee, penalty debt, forfeiture, or obligations due and unpaid as of the effective date of the resolution.

2. This Cost Recovery Policy does not invalidate any action taken prior to its effective date if the action was proper under the law governing the action at the time the action was taken.

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RESOLUTION NO. 1809
A RES

OLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD

MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA , ADOPTING AMENDED CITY COUNCIL POLICY NO. 95 AS THE WATER DISTRICT’S COST RECOVERY POLICY
WHER
EAS, on March 14, 2023 , the Board of Directors adopted City of Carlsbad City Council Policy No. 95 – Cost Recovery Policy for Fees and Charges for Services to set forth cost recovery targets, timelines for fee increases and annual cost inflation adjustments, and frequency for comprehensive review for fees over which it has authority; and
WHEREAS, on June 18, 2024, the Board of Directors adopted changes to City of Carlsbad City Council Policy No. 95 to reflect current cost recovery needs and to reiterate limits on certain fees charged by the Carlsbad Municipal Water District; and
WHEREAS, the City of Carlsbad has completed a comprehensive cost of service study update that was presented to the Board of Directors on May 19, 2026; and WHEREAS, this comprehensive cost of service study update identified many fee activities recovering costs below their appropriate range outlined in City of Carlsbad City Council Policy No. 95; and
WHEREAS, phasing in proposed changes in these fee levels over several years may be recommended or necessary; and
WHEREAS, amendments to City Council Policy No. 95 are necessary to allow any such changes to be made over a period greater than three years.

NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad, California, as follows:

1. That the above recitations are true and correct.

2. That the proposed action to amend City Council Policy No. 95 is exempt from environmental review under California Environmental Quality Act, or CEQA, Guidelines Sections 15061(b)(3) and 15378(b)(5) as it can be seen with certainty that there is no possibility the proposed action may have a significant effect on the environment.

3. That the Board of Directors adopts the amended City Council Policy No. 95 (Attachment A) as the Carlsbad Municipal Water District’s cost recovery policy.

June 16, 2026
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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Board of Directors of the Carlsbad Municipal Water District, the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Public Financing Authority, the Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 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
Item #6 Page 478 of 618
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Attachment A
Policy No. 95
Date Issued
Resolution No.

Subject: Cost Recovery Policy for Fees and Charges for Services Purpose
I
t is important for the city to have a sound and consistent cost recovery policy that will serve as a management tool for establishing, implementing, and evaluating fees and charges.1 This policy ensures that the city’s fees and charges are managed in a manner that will:
• Provide for the delivery of quality services
• Maintain and enhance service delivery
• Support a balanced budget through evaluation and review of the city’s total estimated and reasonable cost of providing services
• Set fee amounts in accordance with local goals as pertains to code compliance, cost recovery, economic development, and community values
• Ensure that any action to establish, increase, or impose a fee is conducted in a manner that satisfies the requirements of state law
The City
of Carlsbad is authorized to adopt and implement fees and charges for certain municipal services, provided the fees and charges do not exceed the reasonable cost of providing such services. This policy sets forth cost recovery targets, timelines for fee increases, annual cost inflation adjustments, and frequency of comprehensive review for all city fees and charges.

Backgro
und
The city’s fees for services, products, and regulatory activities are not taxes requiring voter approval under California State Constitution, Article XIII C, Section 1 (a voter initiative added by Proposition 218 and amended by Proposition 26) if the fees do not exceed the reasonable cost of the services, products or regulatory activities. In addition to the Constitution, state and local laws also provide authorization to charge fees for services. For example, Government Code 66014 governs many fees as it pertains to development approvals. The language of Government Code 66014 mirrors the reasonable cost limitation expressed by the Constitution.

This po
licy addresses all city fees and charges included in the city’s Master Fee Schedule, with a few exceptions. Fees for services not subject to this policy typically require different analyses and adoption processes than the fees that are subject to this policy. 1 The policy, as it applies to Carlsbad Municipal Water District fees and housing services fees, was approved by the Board of Directors of Carlsbad Municipal Water District of the City of Carlsbad on June 16, 2026, by Resolution No. 1809 and the Community Development Commission on June 16, 2026, by Resolution No. 584.

Page 1 of 7 ends

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June 16, 2026

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Subject to this Policy

Statement of policy
It is the policy of the City of Carlsbad that the following guidelines will be used in establishing and maintaining fees and charges:

1. Revenues for individual fees and in aggregate for any fee program shall not exceed the reasonable cost of providing services.

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2. Comprehensive review of all city fees and charges shall occur every five to seven years.

3. In certain circumstances where cost recovery may be unrealistic or undesirable, the City Council may subsidize a portion of or an entire fee program and/or individual fees.

4. In certain circumstances where immediate adjustments to full cost recovery may be impractical, it may be appropriate to phase in fee increases over multiple years.

6. Fees and charges should be sensitive to the “market” for similar services.

7. A unified approach should be used in determining cost recovery levels for various programs and their individual fees and charges based on this policy.

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However, fee surveys should never be the sole or primary criteria in setting city fees as there are many factors that affect how and why other communities have set their fees at their levels.

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Terms and Limitations

2. This Cost Recovery Policy does not invalidate any action taken prior to its effective date if the action was proper under the law governing the action at the time the action was taken.

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RESOLUTION NO. 584 .

A RE

SOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE

CITY OF CARLSBAD, CALIFORNIA, ADOPTING AMENDED CITY COUNCIL POLICY NO. 95 AS THE COMMISSION’S AND CARLSBAD HOUSING
AUTHORITY’S COST RECOVERY POLICY
WHE
REAS, on March 14, 2023 , the Community Development Commission adopted City of Carlsbad City Council Policy No. 95 – Cost Recovery Policy for Fees and Charges for Services to set forth cost recovery targets, timelines for fee increases and annual cost inflation adjustments, and frequency for comprehensive review for fees over which it has authority; and WHEREAS, on June 18, 2024, the Community Development Commission adopted changes to City of Carlsbad City Council Policy No. 95 to reflect current cost recovery needs and to reiterate limits on certain housing services fees; and
WHEREAS, the City of Carlsbad has completed a comprehensive cost of service study update that was presented to the Community Development Commission on May 19, 2026; and WHEREAS, this comprehensive cost of service study update identified many fee activities recovering costs below their appropriate range outlined in City of Carlsbad City Council Policy Statement No. 95; and
WHEREAS, phasing in proposed changes in these fee levels over several years may be recommended or necessary; and
WHEREAS, amendments to City Council Policy No. 95 are necessary to allow any such changes to be made over a period greater than three years.

NOW, THEREFORE, BE IT RESOLVED by the Community Development Commission of the City of Carlsbad, California, as follows:

1. That the above recitations are true and correct.

2. That the proposed action to amend City Council Policy No. 95 is exempt from environmental review under California Environmental Quality Act, or CEQA, Guidelines Sections 15061(b)(3) and 15378(b)(5) as it can be seen with certainty that there is no possibility the proposed action may have a significant effect on the environment.

3. That the Commission adopts the amended City Council Policy No. 95 (Attachment A) as the Commission’s and Carlsbad Housing Authority’s cost recovery policy.

June 16, 2026
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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Community Development C
ommission, the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Municipal Water
District, the Board of Directors of the Carlsbad Public Financing Authority, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 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, Chairperson
______________________________________
GEOFF PATNOE, Secretary
(SEAL)
June 16, 2026
Item #6 Page 487 of 618
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Attachment A
Policy No. 95
Date Issued
Resolution No.

Subject: Cost Recovery Policy for Fees and Charges for Services Purpose
It is i
mportant for the city to have a sound and consistent cost recovery policy that will serve as a management tool for establishing, implementing, and evaluating fees and charges.1 This policy ensures that the city’s fees and charges are managed in a manner that will:
• Provide for the delivery of quality services
• Maintain and enhance service delivery
• Support a balanced budget through evaluation and review of the city’s total estimated and reasonable cost of providing services
• Set fee amounts in accordance with local goals as pertains to code compliance, cost recovery, economic development, and community values
• Ensure that any action to establish, increase, or impose a fee is conducted in a manner that satisfies the requirements of state law
The City of C
arlsbad is authorized to adopt and implement fees and charges for certain municipal services, provided the fees and charges do not exceed the reasonable cost of providing such services. This policy sets forth cost recovery targets, timelines for fee increases, annual cost inflation adjustments, and frequency of comprehensive review for all city fees and charges.

Background
T
he city’s fees for services, products, and regulatory activities are not taxes requiring voter approval under California State Constitution, Article XIII C, Section 1 (a voter initiative added by Proposition 218 and amended by Proposition 26) if the fees do not exceed the reasonable cost of the services, products or regulatory activities. In addition to the Constitution, state and local laws also provide authorization to charge fees for services. For example, Government Code 66014 governs many fees as it pertains to development approvals. The language of Government Code 66014 mirrors the reasonable cost limitation expressed by the Constitution.

This policy a
ddresses all city fees and charges included in the city’s Master Fee Schedule, with a few exceptions. Fees for services not subject to this policy typically require different analyses and adoption processes than the fees that are subject to this policy. 1 The policy, as it applies to Carlsbad Municipal Water District fees and housing services fees, was approved by the Board of Directors of Carlsbad Municipal Water District of the City of Carlsbad on June 16, 2026, by Resolution No. 1809 and the Community Development Commission on June 16, 2026, by Resolution No. 584.

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2026-127
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June 16, 2026

Page 2 ends

Subject to this Policy

Statement of policy
It is the policy of the City of Carlsbad that the following guidelines will be used in establishing and maintaining fees and charges:

1. Revenues for individual fees and in aggregate for any fee program shall not exceed the reasonable cost of providing services.

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2. Comprehensive review of all city fees and charges shall occur every five to seven years.

3. In certain circumstances where cost recovery may be unrealistic or undesirable, the City Council may subsidize a portion of or an entire fee program and/or individual fees.

4. In certain circumstances where immediate adjustments to full cost recovery may be impractical, it may be appropriate to phase in fee increases over multiple years.

6. Fees and charges should be sensitive to the “market” for similar services.

7. A unified approach should be used in determining cost recovery levels for various programs and their individual fees and charges based on this policy.

June 16, 2026
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June 16, 2026

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June 16, 2026

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However, fee surveys should never be the sole or primary criteria in setting city fees as there are many factors that affect how and why other communities have set their fees at their levels.

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Terms and Limitations

2. This Cost Recovery Policy does not invalidate any action taken prior to its effective date if the action was proper under the law governing the action at the time the action was taken.

June 16, 2026
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RESOLUTION NO. 2026-128 .

A RE

SOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,

CALIFORNIA, 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
WHERE
AS, City Council Policy No. 87 – General Fund Surplus Policy allows for General Fund reserve levels exceeding the 40% target requirement to be used for one -time opportunity cost purposes at the discretion of the City Council; and WHEREAS, the city’s unaudited General Fund reserve balance is estimated to be 61% at the close of fiscal year 202 5-26, and has exceeded its General Fund Reserve Policy (City Council Policy No. 74) target of 40%; and
WHEREAS, the city has many unfunded capital projects that are known and some that are unknown; and
WHEREAS, an additional appropriation and transfer to the Infrastructure Replacement Fund could fund future projects.

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 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 funded by the Infrastructure Replacement Fund may require preparation of an environmental document in accordance with CEQA and CEQA Guidelines.

3. That a transfer to the Infrastructure Replacement Fund in the amount of $8,000,000 is approved to help fund future city infrastructure replacement needs.

June 16, 2026
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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 PASSED, APPROVED AND ADOPTED at a Joint Specia l Meeting of the City Council of the C
ity of Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of D
irectors 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.

ABSEN
T: None.
_____________________________________
KEITH BLACKBURN, Mayor
_____________________________________
SHERRY FREISINGER, City Clerk
(SEAL)
June 16, 2026
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Exhibit 18
RESOLUTION NO. 2026-129 .

A RE

SOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE APPROPRIATION OF $294,926 FROM THE GENERAL FUND TO THE FIRE DEPARTMENT ’S FISCAL YEAR 2026 -27

OPERATING BUDGET AND THE CONVERSATION 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
WHE
REAS, the City Council authorized funding on February 25, 2025, for the development of a comprehensive Wildfire Mitigation Plan to address increasing wildfire risk within the City of Carlsbad; and
WHEREAS, the Wildfire Mitigation Plan is a proactive, two-phase framework designed to guide city policy, investment and wildfire risk-reduction strategies; and WHEREAS, Phase 1 of the Wildfire Mitigation Plan, consisting of a Wildfire Hazard and Risk Assessment, has been completed and provides a comprehensive evaluation of wildfire hazards, fire behavior, structural vulnerability, defensible space conditions, operational constraints, and mitigation opportunities throughout the city; and
WHEREAS, Phase 2 of the Wildfire Mitigation Plan will include development of a Community Wildfire Protection Plan through collaboration with residents, community stakeholders, regulatory agencies, land managers, and city staff to identify and prioritize wi ldfire mitigation strategies and implementation actions; and
WHEREAS, the City Council authorized the City Manager to initiate Phase 2 of the Wildfire Mitigation Plan on June 9, 2026; and
WHEREAS, the Fire Department is requesting the conversion of one existing part -time Fire Prevention Specialist position to one full-time Assistant Fire Marshal position to oversee Phase 2 of the Wildfire Mitigation Plan, including development of a Community Wildfire Protection Plan and associated stakeholder engagement, planning, environmental review, and project development activities; and
WHEREAS, the costs associated with the conversion of this position include salary, benefits, training, and equipment; and
WHEREAS, the City Council desires to include funding for the position conversion and community outreach budget in the fiscal year 2026-27 operating budget; and June 16, 2026
Item #6 Page 497 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 W HEREAS, the appropriation required for these items in fiscal year 2026 -27 is $294,926.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:

1. That the above recitations are true and correct.

2. That this 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.

3. That the City Manager or designee is authorized to convert one existing part -time Fire Prevention Specialist position to one full-time Assistant Fire Marshal position in the Fire Department to oversee Phase 2 of the Wildfire Mitigation Plan.

4. That the City Manager or designee is authorized to appropriate a total of $294,926 from the General Fund to the Fire Department’s FY 2026-27 operating budget, including $75,000 for the purchase and outfitting of one vehicle.

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 Carlsba d Redevelopment Agency held on the 16th day of June, 2026, by the following vote, to wit:

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

NAYS: None.

ABSTAIN: None.

ABSENT: None.
_______
_______________________________
KEITH BLACKBURN, Mayor
_______
_______________________________
SHERRY FREISINGER, City Clerk
(SEAL)
June 16, 2026
Item #6 Page 498 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26

Exhibit 19
Policy No. 95
Date Issued June 168, 20246
Resolution No.

Page 1 of 7 ends

Subject: Cost Recovery Policy for Fees and Charges for Services Purpose
It is important for the city to have a sound and consistent cost recovery policy that will serve as a management tool for establishing, implementing, and evaluating fees and charges.1 This policy ensures that the city’s fees and charges are managed in a manner that will:
• Provide for the delivery of quality services
• Maintain and enhance service delivery
• Support a balanced budget through evaluation and review of the city’s total estimated and reasonable cost of providing services
• Set fee amounts in accordance with local goals as pertains to code compliance, cost recovery, economic development, and community values
• Ensure that any action to establish, increase, or impose a fee is conducted in a manner that satisfies the requirements of state law
The City of Carlsbad is authorized to adopt and implement fees and charges for certain municipal services, provided the fees and charges do not exceed the reasonable cost of providing such services. This policy sets forth cost recovery targets, timelines for fee increases, annual cost inflation adjustments, and frequency of comprehensive review for all city fees and charges.

Background
The city’s fees for services, products, and regulatory activities are not taxes requiring voter approval under California State Constitution, Article XIII C, Section 1 (a voter initiative added by Proposition 218 and amended by Proposition 26) if the fees do not exceed the reasonable cost of the services, products or regulatory activities. In addition to the Constitution, state and local laws also provide authorization to charge fees for services. For example, Government Code 66014 governs many fees as it pertains to development approvals. The language of Government Code 66014 mirrors the reasonable cost limitation expressed by the Constitution.

This policy addresses all city fees and charges included in the city’s Master Fee Schedule, with a few exceptions. Fees for services not subject to this policy typically require different analyses and adoption processes than the fees that are subject to this policy. 1 The policy, as it applies to Carlsbad Municipal Water District fees and housing services fees, was approved by the Board of Directors of Carlsbad Municipal Water District of the City of Carlsbad on June 186, 20246, by Resolution No. ___1742 and the Community Development Commission on June 186, 20246, by Resolution No. 569___.

June 16, 2026
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June 18, 2024June 16, 2026

Page 2 ends

Subject to this Policy

Not Subject to this Policy
• Miscellaneous administrative
fees
• Special events fees
• Streetlight energizing fees
• City Clerk’s Office fees
• Library fees
• Fire fees:
o Fire extinguishing and
alarm systems permit fees
o Annual inspections and
fire code permits
o Other fire fees
• Fees for development
applications, including
entitlements, plan review, permit
issuance, inspections
• Police administrative and service
fees
• Utility account fees for
residential customers
• Fees charged on an hourly, time
and materials, or actual cost of
service basis
• Permit fees required to operate a
business
• Any fees prohibited by law from
exceeding the reasonable cost of
providing services
• Deposits and securities
• Safety Training Center facility fees
• All fees for rental or use of city facilities
and/or equipment
• Administrative citation penalties
• Vehicle, traffic and parking civil penalties
• Development impact fees, utility
connection fees
• Trash collection rates
• Fees set through contracts with third-
party vendors
• Water and wastewater service rates and
property related fees and taxes governed
by Proposition 218
• Utility services fees, recycled water and
wastewater fees, third party hydraulic
modelling fees, and other utility fees
• Fees set by external agencies
• Other monetary exactions imposed on a
project on an ad hoc basis in connection
with the approval of a development
project
• Business license taxes
• Emergency medical services, paramedic
and ambulance fees
• Parks & Recreation and Library & Cultural
Arts program and class fees2
• All fees for services set by state or federal
statute

Statement of policy
It is the policy of the City of Carlsbad that the following guidelines will be used in establishing and maintaining fees and charges:

1. Revenues for individual fees and in aggregate for any fee program shall not exceed the reasonable cost of providing services.

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2. Comprehensive review of all city fees and charges shall occur every five to seven years.

3. In certain circumstances where cost recovery may be unrealistic or undesirable, the City Council may subsidize a portion of or an entire fee program and/or individual fees.

4. In certain circumstances where immediate adjustments to full cost recovery may be impractical, it may be appropriate to phase in fee increases over multiple years.

6. Fees and charges should be sensitive to the “market” for similar services.

7. A unified approach should be used in determining cost recovery levels for various programs and their individual fees and charges based on this policy.

Influential Factors to Cost Recovery Policy
Reasonable, routinely reviewed, and well managed fees for services are one of the many responsible financial steps needed to support the city’s overall financial sustainability . When considering whether fees and charges should be adopted to recover 100% of the costs of providing services, city staff and the City Council will consider the following influential factors:
• The level of cost recovery should consider the degree to which the public benefits from the service versus the degree to which the user of the service themselves benefits. • The level of cost recovery should consider how the pricing of services can affect the demand and subsequent level of services provided.

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Procedures
This Cost Recovery Policy establishes a scheduled program to comprehensively review the fee schedule to determine if the current fee amounts are reflective of the costs to provide such services and are consistent with best practices and statutory requirements. • A comprehensive analysis of city service delivery costs associated with fees and charges shall be made approximately every five to seven years.
• Off-cycle updates will occur annually, where fees will be adjusted by a percentage equal to the change in the San Diego Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics or another reasonable inflationary factor. • Individual fees may be adjusted during the interim period based on supplemental analysis whenever there have been significant changes in costs. • The City Council shall have the opportunity to review and the authority to approve any changes to the Master Fee Schedule.
• The City Council may decide to increase fees over a period not to exceed three years of five years in certain circumstances where immediate adjustments to targeted cost recovery amounts may be unrealistic. In exceptional cases, city staff may recommend that the City Council consider a phase-in period exceeding five years to achieve targeted cost recovery rates.

However, fee surveys should never be the sole or primary criteria in setting city fees as there are many factors that affect how and why other communities have set their fees at their levels.

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Terms and Limitations

2. This Cost Recovery Policy does not invalidate any action taken prior to its effective date if the action was proper under the law governing the action at the time the action was taken.

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OVERVIEW
Th
is section includes a summary of the revenues and expenditures included in the fiscal year 2026-27 operating budget. Spending is presented by funding source, department and type, such as personnel or maintenance and operations. For context, previous years’ spending levels are often presented alongside this information. Financial tables are presented to the nearest hundred thousand; rounding differences may exist.

Det
ailed summaries of department services and expenditures are included within the five main sections of the operating budget following this overview. The five city branches include:
• Public Safety
• Public Works
• Community Services
• Administrative Services
• Policy & Leadership
Inf
ormation about the city’s approach to planning for and funding digital transformation efforts throughout the city is included in the Strategic Digital Transformation Investment Program section .

Inf
ormation about capital projects, such as construction of roads and pipelines , the development of parks and construction and maintenance of city facilities, is included in the Capital Improvement Program section.

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REVENUE

The Operating Budget for fiscal year 2026-27 totals $449.2 million, with revenues for the year estimated at $451.3 million. General Fund revenues are estimated at $249.6 million and General Fund budgeted expenditures are $249.1 million, which includes an additional $5.0 million in one-time transfers to the Solid Waste Management Enterprise Fund for Stormwater Protection programming .

Excluding the one-time uses of General Fund surplus, the General Fund budgeted operating expenditures are $244.1 million.

Revenue estimates for the Operating Budget indicate the city will receive a total of $ 451.3 million in fiscal year 2026-27, a change of 0.2% or $1.1 million below the estimated fiscal year 2025-26 revenues. General Fund revenues are expected to increase by $6.3 million or 2.6% compared to the prior year’s adopted revenues, and the same when compared to fiscal year 2025-26 estimates.

Special Revenue funds are projected to decrease by 26.8% or $9.7 million over fiscal year 2025-26 estimates driven primarily by one-time Encampment Resolution funding received in fiscal year 2025- 26, in addition to smaller decreases in CDBG, Tyler Court, Affordable Housing Trust Fund, and the COPS Fund. Enterprise Fund revenues are projected to increase by 2.9% or $3.6 million in the upcoming fiscal year. Internal Service Fund revenues are decreasing over the prior year’s adopted budget by $1.3 million, or 2.6%. This is primarily driven by a reduction in chargebacks for Vehicle Replacement and Information Technology in an effort to maintain their respective reserve levels in - line with industry standards. The Successor Agency Housing Trust is no longer receiving any material revenue as the loan owed to the General Fund has now been fully repaid. More detailed information on the city’s revenue sources is provided in the following discussion.

The following table shows the total operating revenues anticipated to be received by the city for fiscal year 2025-26, as well as those budgeted for fiscal year 2026-27.

General Fund
General Fund revenues provide a representative picture of the local economy. These revenues are of particular interest as they fund basic city services such as Police, Fire, Library & Cultural Arts, Street and Park Maintenance and Recreation programs. The table below provides a summarized outlook of the General Fund revenues.

Estimated Budgeted $ %
2025-26 2026-27 Change Change
General Fund 243.3$ 249.6$ 6.3$ 2.6% Special Revenue 36.4 26.6 (9.7) -26.8% Enterprise 123.6 127.2 3.6 2.9% Internal Service 49.0 47.8 (1.3) -2.6% Total 452.3$ 451.3$ (1.1)$ -0.2%

REVENUE SUMMARY BY FUND TYPE
(in Millions)
Fund
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Sustained by pent-up demand following the COVID-19 pandemic and accumulated savings, the inflationary spike between March of 2021 and November of 2023 served as a boost for the city’s revenue sources like sales tax and transient occupancy tax. While these revenue sources sustained strong performance in fiscal year 2023-24, the city began seeing consumer demand decline in response to the sustained inflationary levels and diminishing levels of personal savings. This trend continued throughout fiscal year 2024-25 and 2025-26, despite the Federal Reserve’s reduction of interest rate benchmark targets from a high of 5.50% in July 2023 down to 3.50% as of December 2025. Consumer confidence was impacted by federal administration policy changes , notably the implementation of tariffs on foreign goods. While confidence rebounded at the beginning of fiscal year 2025-26, it declined again in response to geopolitical challenges and rising oil prices. Nationally, GDP increased by 2.0% in the first quarter of 2026, largely due to investment, exports, consumer spending, and government spending which were offset by a reduction in imports .

Rising oil prices, geopolitical tensions and inflation continue to pose risks, even as labor market resilience supports some optimism in consumer sentiment on a macro level. Overall, the U.S. consumer confidence in April 2026 reflects a complex mix of cautious optimism and underlying economic concerns, with short-term improvements tempered by persistent inflation and geopolitical uncertainty.

Nearly 80% of General Fund revenues are derived from three sources: property tax, sales tax, and transient occupancy tax, or TOT. Sales tax and TOT revenues tend to be much more sensitive to changes in economic conditions, unlike property tax revenues, which remain relatively stable because of the mitigating effect of Proposition 13, which limits annual growth in assessed values.

Property tax, the largest source of General Fund revenues, is expected to grow by $4.6 million, or

4.6%, over the previous year’s estimates. Despite the extended rise and reduction in interest rates from the Federal Reserve, Carlsbad’s residential real estate market has seen modest retraction year-over- year, decreasing by 3.9% to a $1.37 million median price as of March 2026. Future growth for both residential and commercial properties is expected to remain relatively flat given the sustained interest rate levels although strong and continued demand for relatively limited supply may stabilize any adverse factors. Proposition 8 allows owners to have their property temporarily revalued if market value is lower than the factored base year value, posing a risk that commercial property values could temporarily decrease.

Estimated Budgeted $ %
2025-26 2026-27 Change Change
Property Tax 100.1$ 104.7$ 4.6$ 4.6% Sales Tax 54.4 55.0 0.6 1.2% Transient Occupancy Tax 35.6 35.9 0.4 1.0% Franchise Taxes 7.4 7.5 0.1 1.9% Business License Tax 7.1 7.0 (0.1) -1.0% Development Revenues 4.7 4.8 0.2 3.6% All Other Revenue 34.1 34.6 0.5 1.4% Total 243.3$ 249.6$ 6.3$ 2.6%

GENERAL FUND REVENUES
(In Millions)
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Assessed values on the residential real estate side are expected to grow modestly, capped by California’s Proposition 13. Adopted in 1978, Proposition 13 limits the annual increase in assessed values for property. Under this proposition, assessed values (and the related property tax) can grow by no more than 2% per year.

Aircraft taxes, a component of the city’s property tax revenue category, is expected to increase in future periods. Although assessed valuations are highly volatile from year -to-year given the transient nature of where aircrafts are housed, should the Palomar Airport expand operations, the city would expect additional revenue generation. In recent years, aircraft taxes have ranged between $2 -3 million annually. The fiscal year 2026-27 budget assumes a $300,000, or 10.1% increase of fiscal year 2025-26 estimates.

Changes in property tax revenues lag behind changes in the housing market, as the tax revenue for the upcoming fiscal year is based on assessed values from the previous January. Thus, the taxes to be received for fiscal year 2026-27 are based on assessed values as of January 1, 2026.

Property taxes tend to grow slowly unless there is a significant amount of development -related activity.

In past decades the city has seen robust growth in property tax revenue due to new development, high turnover of existing homes and double-digit growth in housing prices. However, as opportunities for new development and growth lessen, development-related revenues have slowed. In addition to current interest rates levels and the implementation of tariffs, slower development combined with minimal commercial property transactions creates more uncertainty regarding future growth.

Sales Tax revenues generally move in step with economic conditions but overall, Carlsbad’s economy has absorbed the inflationary increases experienced since 2021. W ith the pandemic and its fiscal impacts behind us, new uncertainty stems from federal administration policy and geopolitical conflict, particularly around the cost of oil. Over the last year, consumer demand and confidence has been diminishing despite brief period surges, which indicate heightened economic elasticity. The Federal Reserve has reduced interest rate benchmark targets from 5.50% in July 2023 to 3.50% as of December 2025; however, geopolitical tensions and the rise in oil prices hav e kept consumers cautious.

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The onset of the pandemic in March 2020 resulted in swift reductions in sales tax revenues . During fiscal year 2020-21, sales tax levels generally correlated with shelter-in-place mandates. As restrictions were lifted, the city’s sales tax levels recovered. While the city ended fiscal year 2019-20 with $38 million in sales tax revenues, that figure increased in 2020- 21 to $44 million in sales tax revenues. Fiscal year 2021-22 experienced the most accelerated recovery, ending the year at a historic high of $51.2 million in sales tax revenues. The fiscal year 2022-23 and 2023-24 sales tax estimates reflected uncertainty surrounding market and economic conditions like inflation and impacts to disposable income. Despite the levels of inflation, growth was positive over this period; however, fiscal year 2024-25 indicated a slowdown in consumer demand as a result of the sustained levels of inflation and the uncertainty regarding tariffs. Fiscal year 2025- 26 experienced continued decreases in demand at the local level, likely due to sustained inflationary levels, uncertainty among geopolitical conflict and the rise in oil prices. Staff have proposed a conservative estimate of $55.0 million in budgeted revenue for fiscal year 2026-27 which represents an increase of $0.6 million, or

1.2%, over fiscal year 2025-26 estimates.

As indicated in the chart on the previous page, the city’s sales tax base is heavily weighted in the transportation (comprised heavily of new auto sales) and general retail sectors, which combined account for over half of the taxable sales in Carlsbad. New auto sales are highly elastic— or responsive to changes in price—in comparison to economic trends, and tax revenues from new auto sales fell precipitously during the recession, from $6.7 million in 2007 to $4.4 million in 2009. Since that dip, auto sales tax revenues have grown steadily, reaching a high of $19.8 million for the four quarters ended June 30, 2024. Much of the positive performance in fiscal year 2023-24 was due to a correction of an error made by one particular auto dealer in how they were reporting and remitting their taxable receipts. Projections in fiscal year 2026-27 are estimated at $16.2 million, representing a June 16, 2026
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$0.3 million or 1.9% increase, indicating conservative growth following a period stifled by unprecedented inflationary levels. Minor volatility is expected across multiple industry groups including business and industry, building and construction and general consumer goods ; however, fuel and service stations are projected to experience growth in excess of 10% with the recent surge in oil prices.

Sales tax revenues include those received under Proposition 72, a 0.5 cent increase in California sales tax for the funding of local public safety services.

The third highest General Fund revenue source is Transient Occupancy Tax, also known as TOT or hotel tax. TOT was the revenue category most adversely impacted by COVID-19. From historic highs of $26 million in fiscal year 2018-19, the city experienced year-over-year decreases of 27% and 16%. Recovery from the pandemic was estimated conservatively; however, fiscal year 2021 -22 TOT revenues proved otherwise, reaching a historic high of $32.4 million driven by the easing of restrictions, pent-up demand and an increase in average daily room rates. This trend continued in fiscal year 2022-23, whereby actual revenues exceeded conservative estimates that were applied to account for sustained levels of unprecedented inflation. Fiscal year 2023-24 and 2024-25 experienced conservative to moderate growth as occupancy rates and average daily room rates held steady throughout the sustained inflationary period. Fiscal year 2025-26 estimates are in-line with continued conservative projections and fiscal year 2026-27 will follow similar trends accounting for a $0.4 million, or 1.0% increase over current year estimates.

Franchise Tax revenue has experienced volatility in recent years and is projected at $7.5 million in fiscal year 2026-27. Franchise taxes are paid by certain industries that use the city’s right-of-way to conduct their business. The city currently has franchise agreements for cable TV service, solid waste services, cell sites, fiber optic antenna systems and gas and electric services. The solid waste franchise fee has experienced minor revenue increases that mirror growth in population and changes in rate June 16, 2026
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structures. Cable TV franchise revenue is expected to slightly decrease from $1.1 million in fiscal year 2025-26 to $1.05 million in fiscal year 2026-27. This revenue source will most likely remain stable or decline in future years as more subscribers cut cable services and move to online streaming services.

In April 2021, a new franchise agreement for solid waste was approved with Republic Services of San Diego. The city receives 7.5% of revenue collected as well as an annual payment of $0. 9 million in support of AB 939 and a $1.4 million storm water fee. Fiscal year 2025-26 solid waste franchise tax revenue is projected to end the year with $2.53 million and fiscal year 2026-27 is projected to slightly increase to $2.61 million.

San Diego Gas & Electric pays franchise taxes for the use of the public land over which they transport gas and electricity. The city also receives an “in-lieu” franchise tax based on the value of gas and electricity transported on SDG&E lines but purchased from another source. The “in-lieu” tax captures the franchise taxes on gas and electricity that is transported using public lands, which would not otherwise be included in the calculations for franchise taxes due to deregulation of the power industry. Fiscal years 2022-23 and 2023-24 experienced strong increases as a result of increased rates on both the gas and electric sides; however, fiscal year 2024-25 experienced over revenue declines of approximately 20%. As a result, SDG&E franchise tax revenues decreased from $4.5 million in fiscal year 2023-24 to $3.3 million in fiscal year 2024-25. Fiscal year 2025-26 estimates indicate an approximate 10% increase over the previous year; however, due to past volatility, fiscal year 2026 -27 is projected to remain relatively flat over these current year estimates.

Business license taxes are closely tied to the health of the local economy and are projected to increase to $7.0 million in fiscal year 2026-27. This represents growth of $0.2 million or 3% when compared to last year’s adopted revenues and relatively flat compared to fiscal year 2025- 26 estimates. Increases in business license taxes tend to correlate with sales tax revenue increases as businesses either pay taxes based on the amount of their gross receipts or based on set fees. There are currently about 10,037 licensed businesses in the City of Carlsbad, with 6,677 of them located in the city.

Development-related revenues are derived from fees for planning, engineering and building permits, and fees paid by developers to cover the cost of reviewing and monitoring development activities, such as plan checks and inspections. These revenues are difficult to predict as many of the planning and engineering activities occur months or years before any actual development.

Over the last 10 years development-related revenues have fluctuated in line with increases and decreases in residential, commercial and industrial development. In fiscal year 2025-26 the city expects a 2.0% increase in development related revenues to approximately $4.8 million. The projected increase in development-related revenues is tied to the volume and type of development projected to be permitted, multi-family versus single-family, and the revenues derived from building fees which occur in the early stages of development. Increases applied to these charges for services are made in accordance with City Council Policy 95, Cost Recovery.

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The All other revenue category comprises all other sources of revenue in the General Fund other than those mentioned above and are projected to increase by $0.5 million in fiscal year 2026-27 representing a 1.4% change from fiscal year 2025-26 estimates. The main revenue sources contributing to this category are described in more detail below.

Interdepartmental charges are generated through engineering services charged to capital projects, reimbursed work from other funds and miscellaneous interdepartmental expenses charged to funds outside the General Fund for services performed by departments within the General Fund.

General Fund miscellaneous interdepartmental charges are expected to increase by 3.4% compared to the prior year’s adopted budget, based on the inflationary index applied to the chargeback in off- cycle years in which an updated cost allocation plan is not completed.

Income from investments and property include interest earnings as well as rental income from city-owned land and facilities. The city is expected to earn about $ 8.4 million in interest on its General Fund investments, including the city’s Section 115 Pension Trust for fiscal year 2025-26 and another $3.0 million in rental and lease income. The yield on the city’s portfolio is forecasted to average 3.50% and cash balances are expected to decline citywide as construction for Veteran’s Memorial Park progresses.

Ambulance fee revenues are estimated to decrease $0.2 million over last year’s estimates, from $7.0 million to $6.8 million. Ambulance fees have increased in recent years due to the Fire Department’s fee study implementation, the addition of two medical transports , the Ground Emergency Medical Transportation Certified Public Expenditure Program, which helps cover uncompensated costs for Medi-Cal fee-for-service transports, and the participation in the Public Provider Ground Emergency Medical Transport Intergovernmental Transfer Program which will provide add-on reimbursement payments to help cover uncompensated costs in the future. The decrease in year-over-year estimates is driven by the impact of Assembly Bill 716, which became effective January 2024 and has resulted in significant impacts on the reduction of ambulance fees.

Transfer taxes are those taxes paid to the county upon the transfer of interests in real estate. The tax is $1.10 per $1,000 of property value, split equally between the county and the city. Carlsbad expects to receive approximately $1.7 million in transfer taxes for fiscal year 2026-27 which is relatively flat compared to fiscal year 2025-26 estimates. The residential real estate market has held relatively strong following its decrease in median home value from a high of $1.54 million a s of 2024 to $1.37 million as of March 2026. The reduction in interest rates from 2023 to 2025 helped stabilize levels of affordability and relatively low levels of supply may help mitigate any adverse effects of macro-economic factors.

Other intergovernmental revenues include miscellaneous receipts received from the state or federal governments as well as local school districts. With the exception of the city receiving its two annual American Rescue Plan Act payments in fiscal 2020-21 and fiscal year 2021-22 totaling $12.6 million and a one-time FEMA reimbursement funding for COVID-19 related expenditures in fiscal year 2024-25, this revenue source remains relatively stable and is expected to remain flat at $1 million over the previous fiscal year.

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The Other revenue sources category includes miscellaneous reimbursed expenses, sponsorships, donations, loss recovery and other charges and fees. The estimate for fiscal year 2025-26 totals $1.6 million and is expected at $0.5 million in fiscal year 2026-27, with year-over-year decreases due to a large one-time insurance reimbursement received in the previous year.

Overall, and as reflected in the bar chart above, General Fund revenues are expected to increase $6.3 million or 2.6% from fiscal year 2025-26 estimates. The General Fund’s primary tax revenues are estimated to increase conservatively over last year’s estimates to account for the current economic uncertainty spurred by geopolitical tensions. Despite uncertainty around inflation and the price of oil, as well as interest rates, the General Fund’s total revenues are expected to be supported by stable property tax values, a diversified sales tax base, and the implementation of the city’s cost recovery policy which increases fees for services in line with appropriate cost recovery levels.

Other Funds
Revenues from Special Revenue funds are expected to total $26.6 million, a decrease of $9.7 million or 26.8% from fiscal year 2025-26 estimates. Funds collected in this category are restricted to specified purposes. The types of programs supported within Special Revenue funds are those funded by specific revenue streams such as:

• Federal Grants (Rental Assistance and Community Development Block Grants) • Special fees and assessments (Affordable Housing and maintenance assessment districts) • Donations (Library, Cultural Arts, Recreation and Senior Donations)

Compared to the fiscal year 2025-26 budget estimates, the most noteworthy changes in the Special Revenue funds occurred in the Encampment Resolution Fund, whereby the city is expected to receive $5.5 million of one-time state grant revenue in fiscal year 2025-26 that it will not receive again in fiscal year 2026-27.

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There is no revenue budgeted in the Successor Agency Housing Trust Fund, other than interest income from remaining funds. Although the Carlsbad Redevelopment Agency has been dissolved, the California Department of Finance has approved the repayment of the approximately $8.1 million (plus accrued interest) loaned to both the city’s former redevelopment areas by the General Fund as well as debt service payments remaining on the former agency’s 1993 Tax Allocation Refunding Bonds. All outstanding loans and interest accrued hav e been paid to the city by the end of fiscal year 2020-21 and debt service payments were completed in fiscal year 2023-24.

Enterprise fund revenues for fiscal year 2026-27 are projected at $127.2 million representing an increase of 2.9% or $3.6 million over fiscal year 2025-26 estimates. The revenue breakdown by activity is shown in the graph on the following page. Enterprise funds are similar to a business in that rates are charged to support the operations that supply the goods or services. Carlsbad enterprise funds include water and recycled water delivery, wastewater services, solid waste management and the operation of a municipal golf course.

The
Water Enterprise Fund revenue for fiscal year 2026-27 is estimated at $62.8 million representing an increase of $8.4 million or 15.4% when compared to fiscal year 2025-26 revenue estimates. This is driven by increases in water rates. Projected revenues for Recycled Water of $11.3 million are expected to decrease by $3.5 million or 23.4% from fiscal year 2025-26 estimates.

This is due to loan proceeds that the fund received in the previous year.

Forecasted revenues for Wastewater are $32.8 million representing a 9.6% or $2.9 million increase over fiscal year 2025-26 estimates. This increased estimate is largely driven by rate increases of 14% in fiscal year 2026-27 to support rising treatment costs and aging infrastructure costs.

Rental Assistance
$16.4.0M, 62%
Continuum of Care
$1.7M, 6%
Affordable Housing
$0.8M, 3%
CDBG
$0.6M, 2%
Maintenance Districts
$4.3M, 16%
Donations and Grants
$1.0M, 4%
Permanent Local Housing
Allocation
$0.2M, 1%
Tyler Court Apartments
$0.9M, 3% All others
$0.7M, 3%
Special Revenue Funds
FY 2026-27 Budgeted Revenues $26.6 Million
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Estimated revenues from operations of the Golf Course are $11.9 million, a decrease of $0.9 million or 6.9% when compared to fiscal year 2025-26 estimates. The Crossings at Carlsbad has experienced strong revenue performance year-over-year since the onset of the pandemic. Revenues for the upcoming year are estimated conservatively to account for any potential adverse impacts on consumer demand resulting from economic and market uncertainty.

Solid Waste Management revenues are projected at $8.4 million, which is $3.3 million or 27.9% lower than fiscal year 2025-26 estimates. The decrease is driven by a change in the level of one-time transfers in from the General Fund $2.0 million transfer in from the General Fund to support continued operations of the city’s Stormwater Protection program. The fiscal year 2026- 27 budget includes a one-time transfer of $5.0 million from the General Fund for this effort.

Internal Service funds account for services provided within the city itself, from one department to another and on a cost reimbursement basis. These include programs such as the self -insurance funds for Workers’ Compensation and General Liability (Risk Management), as well as Ve hicle Maintenance and Replacement and Information Technology. Departments pay for these services and therefore the rates charged are based on the cost of providing the services. The goal of an internal service fund is to match budgeted expenses with charges to the departments.

The combined internal services funds project estimated revenues of $47.8 million for fiscal year 2026- 27 representing a decrease of 2.6% or $1.3 million over fiscal year 2025-26 projections. This decrease is driven by a reduction in chargebacks, particularly for Vehicle Replacement and Information Technology.

Workers’ Compensation is increasing by $0.4 million or 4.8% based on the level of anticipated claims and settlements across departments for the upcoming year. Risk Management is also increasing by $0.4 million based on annual estimated claims and settlements occurring across the city’s funds and departments.

Water Operations
$62.8M, 49%
Recycled Water
$11.3M, 9%
Wastewater Operations
$32.8M, 26%
Solid Waste Management
$8.4M, 7%
Golf Course Operations
$11.9M, 9%
Enterprise Funds
FY 2026-27 Budgeted Revenues $127.2 million
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Vehicle Maintenance and Replacement charges are budgeted at $5.1 million and $6.6 million, respectively. Vehicle Maintenance revenues are up compared to fiscal year 2025-26 estimates primarily due to increasing fuel costs as well as an overall increase in the size of the city’s fleet.

Vehicle replacement costs rise when the number of vehicles and the price of new vehicles or the cost to maintain those vehicles increases. For example, many older generation sedans at the end of their useful lives are now being replaced with hybrids and plug-in hybrids at a higher per unit cost. There have also been significant cost increases over the last several years in specialized vehicles such as fire trucks and ambulances as well as supply chain disruptions and unprecedented inflation that have significantly driven up prices. However, in fiscal year 2026-27, the amount charged to departments is decreasing by 38.3% in an effort to strategically align the Vehicle Replacement reserve with industry standards. During periods of low reserve levels, additional charges may be warranted to ensure sufficient funding exists in the future and during periods of high reserve levels, fewer charges may be needed to mitigate unnecessary excess.

Information Technology charges to departments have increased by 2.3% or $0.5 million when compared to fiscal year 2025-26 estimates. The main reason for this increase is due to contractual increases to existing service contracts which were offset by a reduction in chargebacks to strategically align its reserve balance.

Internal Service Fund Allocation Methodology
Most of the revenue for the city’s internal service funds is generated from internal service charges.

The expenses of each fund are budgeted for and then allocated to other funds on an annual basis.

Each fund uses a different allocation basis to charge other funds for its costs, summarized below. • Vehicle Replacement – Based on equipment assigned to departments. • Vehicle Maintenance – A combination of fixed and variable maintenance charges. Fixed maintenance charges are based on a three-year average of maintenance costs in combination with budgeted labor costs. Variable maintenance charges are based on actuals. • Information Technology Operations – A combination of computers per department for citywide maintenance/licensing and direct charges for department-specific items. • Information Technology Replacement – Based on a combination of equipment and hardware specifically assigned to a department and for infrastructure hardware on an allocation based on computers per department as a percentage of citywide computers. • Workers’ Compensation – Based on a combination of personnel count and five-year average claims costs by department.
• General Liability – Based on a combination of personnel count, five-year average claims costs by department and vehicles assigned to departments.

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EXPENDITURES

The city’s Operating Budget for fiscal year 2026-27 totals $449.2 million, which represents a decrease of approximately $9.3 million or 2% as compared to the adopted fiscal year 2025-26 budget. A summary of the changes in each of the city’s programs will be discussed below. Further information about each program can be found in the individual program summary pages.

The General Fund contains most of the discretionary revenues that support core city services.

However, this should not diminish the importance of the other operating funds as they also contribute to the array of services available within Carlsbad. The rema inder of this section will provide more information about the budgeted expenditures by fund and program.

Since fiscal year 2022-23, the city’s budget has prioritized the prudent use of taxpayer funds through times of economic uncertainty. Through maintenance and operations reductions to the elimination of 24 full-time equivalent positions, the city saved over $5 million of ongoing expenditures. While formal budget reductions are not a part of the fiscal year 2026-27 budget, responsible and prudent use of taxpayer dollars as well as maintaining a balanced budget now and in the future remain the top priorities. Following years of significant budget reductions, the City Manager continued to stress the importance of “holding the line” to departments when evaluating budgetary needs while also ensuring service levels provided to the community are prioritized . The fiscal year 2026-27 operating budget reflects critical increases including:
- Operating costs for the Monroe Street Pool as it’s set to reopen in September 2026 - Six (6) EMT to Paramedic Firefighter reclassifications as part of a multi -year effort - General election expenses
- 2028-2032 Strategic Plan facilitation
- Traffic signal and all way stop analysis
- Storm drain maintenance and street sweeping
- Six (6) Police Department positions for COPPS team (approved on Mar. 2 4, 2026)

The total Operating Budget for the
General Fund for fiscal year 2026-27 is $249.1 million, which is $6.7 million or 2.8% more than the previous year’s adopted budget of $242.4 million. These changes are discussed in more detail on the following pages.

Budget Budget $ %
2025-26 2026-27 Change Ch ange
General Fund 242.4$ 249.1$ 6.7$ 2.8% Special Revenue 24.7 26.5 1.7 7.0% Enterprise 146.9 129.7 (17.2) -11.7% Internal Service 44.5 43.9 (0.6) -1.3% Successor Agency Housing Trust - - - 0.0% Total 458.6$ 449.2$ (9.3)$ -2.0% By Fund Type
(In Millions)

BUDGET EXPENDITURE SUMMARY
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Personnel costs make up 64% of the General Fund budget. The total personnel budget for fiscal year 2026-27 is $158.2 million, which is $12.6 million or 8.7% greater than the previous year’s total personnel budget of $145.6 million. This is driven by 11.58 additional full-time equivalent positions since prior year budget adoption, an increase in CalPERS’ unfunded liability payment, and negotiated compensation increases. In fiscal year 2026-27, the preliminary budget continues to propose including a line item for “vacancy savings.” This represents the estimated amount of budgeted personnel savings that will be realized by the end of the fiscal year. This mechanism is proposed for multiple reasons: (1) budgeting for vacancy savings reduces the total amount of the General Fund budget, (2) budgeted personnel costs more closely align with actual personnel costs over the course of the fiscal year, (3) historically, the city would bring recommendations to repurpose budget savings at the mid-year point of the fiscal year; this mechanism pre-emptively achieves that objective, and (4) budgeting vacancy savings will achieve alignment with the city’s 10- year forecast which has historically included a line item for vacancy savings.

The table above shows the breakdown of personnel costs for the General Fund. General Fund salaries include full-time and part-time staff costs and are expected to increase in fiscal year 2026-27 by $8.3 million or 8.6%. The increase is primarily due to negotiated salary increases as well as the addition of

11.58 full-time equivalent positions since prior year budget adoption—six of which were approved by the City Council mid-year, and 5.58 of which are proposed with the fiscal year 2026-27 budget. The full-time staffing changes are listed on the following page.

Budget Budget $ %
2025-26 2026-27 Change Change
Personnel 145.6$ 158.2$ 12.6 8.7% Personnel, gross 147.6 160.2 12.6 8.6% Vacancy Savings (2.0) (2.0) - 0.0% Maintenance & Operations 70.4 69.3 (1.1) -1.6% Capital Outlay 2.7 0.4 (2.3) -84.1% Transfers 23.7 21.2 (2.5) -10.7% Subtotal 242.4$ 249.1$ 6.7$ 2.8% (In Millions)

GENERAL FUND SUMMARY
By Expenditure Type
Budget Budget $ %
2025-26 2026-27 Change Ch ange
Salaries and Wages 95.9$ 104.2 8.3 8.6% Salaries and Wages, gross 97.9 106.2 8.3 8.5% Vacancy Savings (2.0) (2. 0) - 0.0% Retirement Benefits 28.6 31.4 2.8 9.9% Health Insurance 12.1 12.9 0.8 6.5% Other Personnel 9.0 9.7 0.7 8.3% Total 145.6$ 158.2$ 12.6$ 8.7% Personnel Costs
(In Millions)

GENERAL FUND
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Full-time equivalent staffing adjustments
General Fund (5.58):
• Full time
o (1) Monroe Pool Maintenance Worker – Parks & Recreation • Part time
o (-.18) Reduction in hours for restructuring of the GUIDE program – Police o (0.4) Custodian at Safety Training Center – Fleet & Facilities o (2.65) Part-time lifeguards at Monroe Pool – Parks & Recreation o (0.74) Part-time aquatics instructors at Monroe Pool – Parks & Recreation o (0.73) Communications Coordinator – Communication & Engagement o (0.24) Additional Administrative Analyst hours – Communication & Engagement

Non-General Fund:

No adjustment in fiscal year 2026-27.

Retirement Benefits Cost
CalPERS administers the city’s defined benefit pension plan and costs have been increasing in past years as CalPERS addresses a structural shortfall in plan assets to cover unfunded liabilities. As part of CalPERS’ strategy to ensure the plan’s sustainability, CalPERS deliberately raised participating agencies’ contributions over several years to improve the plan’s long -term funded status. The pension system continues to pursue tactics in support of its strategy to ensure plan sustainability such as investing in assets with the objective of achieving a long-term rate of return that meets or exceeds 6.8%. While pension costs are increasing, there is some downward pressure on costs as new employees receive lower pension benefits. CalPERS has taken significant steps in ensuring plan sustainability, but pension costs still pose a significant risk to the city’s cost profile.

In support of CalPERS strategies for plan
sustainability and as part of the city’s strategic, long- term approach to financial management, the city
actively manages its unfunded pension liability. Since
fiscal year 2016-17, the City Council has approved
additional discretionary contributions of $56.4
million to decrease future costs of the city’s
unfunded actuarial liability and achieve a funded
status of 80% in accordance with City Council Policy

86. In fiscal year 2023-24, the City Council also approved the establishment of a Section 115 Pension Trust and a $10.0 million initial contribution. Since then, the city has contributed an additional $7.5 million in fiscal year 2024-25 and $7.5 million in fiscal year 2025-26, bringing total contributions in the trust to date to $25 million. Assets in the trust will be available to the city to maintain an 80% funded status, mitigate pension rate volatility and potentially earn a higher rate of return than if the funds were left in the General Fund. This active management helps ensure that resources are available to fulfill the city’s contractual promises to its employees and minimizes the chance that funding these pension benefits will interfere with the city’s ability to provide essential public services .

In support of CalPERS strategies for
plan sustainability, and as part of the
city’s strategic, long-term approach to
financial management, the city
actively manages its unfunded
pension liability.

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Fiscal year 2026-27 reflects $31.4 million in retirement benefits costs, which represents an increase of $2.8 million or 9.9% compared to the previous year. Most of this increase is due to the CalPERS unfunded liability payment increasing by $1.6 million or 11% compared to the prior year. Increases in CalPERS’ required contributions are the result of their poor investment performance in fiscal year 2021-22 (-6.1%) and fiscal year 2022-23 (5.8%). Since that time, CalPERS has earned 9.3% and 11.6% in fiscal year 2023-24 and 2024-25, respectively, which will mitigate future increases over the next five years.

General Fund Health Insurance costs in the General Fund are increasing from $12.1 million to $12.9 million. The increase is a result of anticipated rate increases in addition to changes in employee benefit elections. Other Personnel Costs include workers’ compensation expenses and other miscellaneous costs such as Medicare, unemployment and disability, which are increasing collectively by $0.7 million or 8.3%.

Maintenance and Operations costs represent 28% of the total General Fund budget and include the budgets for all program expenses other than personnel, capital outlay and transfers. Overall, total maintenance and operations costs are projected at $69.3 million, which represents a decrease of $1.1 million or 1.6% for fiscal year 2026-27 when compared to fiscal year 2025-26. Fiscal year 2021-22 and 2022-23 experienced inflationary increases ranging between 4.1% and 8.3% which drove the city’s need to contain costs and identify areas for reduction with minimal service level impacts. Much of the increase from fiscal year 2022-23 to 2023-24 was related to large increases in transfers out to fund long-term capital needs. While the increase in the fiscal year 2025-26 maintenance and operating budget was largely attributable to inflationary increases, Climate Action Plan initiatives, and fire mitigation efforts. In fiscal year 2026-27, the largest contributor to the overall decrease is the decrease in internal service department chargebacks. As mentioned in the Revenue section of the Overview, fleet and information technology chargebacks to external departments were lower than previous years in an effort to maintain the fund balance reserve levels a t industry standards.

Capital Outlay includes budgeted equipment purchases over $10,000. Capital outlay purchases of $0.4 million are budgeted in the General Fund for fiscal year 2026-27. This represents a decrease of $2.3 million and is primarily due to the Fire Department’s request to purchase a second front-line aerial ladder truck in the prior year with no similar purchase occurring this year .

Operating Costs Associated with Capital Investments
As the city completes major capital projects, the costs of maintaining and operating the facilities and improvements, including additional personnel, if necessary, are added to departmental operating budgets. The city’s Capital Improvement Program and Strategic Digital Transformation Investment Program budgets include future projected operating impacts, which are estimated in the tables found in sections H and I, respectively.

Advances
Advances and repayments of prior advances are amounts anticipated to be transferred from the General Fund to other city funds with expectation of repayment in future years. No General Fund advances are included in this year’s operating budget.

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Expenditures in fiscal year 2018-19 reflect an additional one-time $20 million payment to CalPERS to further bring down the city’s unfunded pension liability. Fiscal year 2019 -20 included the addition of 34 new full-time employees but was largely offset due to the city’s response to the COVID-19 pandemic and the need to reduce discretionary spending as much as possible during th at unprecedented time.

Fiscal year 2020-21 expenditures reflect an additional $10 million one-time payment to CalPERS to further bring down the city’s unfunded pension liability. The increase was largely offset by the continuation of the COVID-19 pandemic and the city’s efforts to curb and defer expenditures.

Additionally, a $57 million advance to the golf course was reclassified as a transfer out.

Fiscal year 2021-22 expenditures reflect the plan to reinstate city services back to pre-pandemic levels and operationalize the City Council’s goals. The increase includes $5.9 million in one -time costs associated with the goals and the addition of 18 new full-time and 6.7 part-time employees which are mostly associated with the goals. The city again made an additional one-time $6.4 million payment to CalPERS to bring down the city’s unfunded pension liability.

Fiscal year 2022-23 expenditures include the addition of 24 full-time employees as well as a number of new one-time requests to execute City Council goals, as well as a total of $10.6 million in one-time transfers to fund Workers’ Compensation, Risk Management, and Fleet Maintenance. Lastly, a $2 million allocation was approved to fund the Safer Streets local emergency.

Fiscal year 2023-24 expenditures include budget reductions of approximately 3% of the base maintenance and operations budget, offset by negotiated compensation and contractual benefit increases. Additionally, a $5.2 million allocation was approved for the Carlsbad Village Trenching Project. Fiscal year 2024-25 expenditures include the elimination of 12 full-time equivalent positions offset by a $20 million one-time surplus use to General Capital Construction, Workers’ Compensation and Risk Management Funds.

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Fiscal year 2025-26 expenditures include the addition of six (6) positions for the Police Department, four (4) full-time equivalent positions for various administrative functions, a $2.6 million one-time capital outlay as well as additional increases for retirement costs as a result of CalPERS’ negative investment performance in fiscal year 2021-22. The fiscal year 2026-27 expenditure budget includes the addition of six (6) positions in the Police Department which were approved in March 2026, additional operating costs for the reopening of Monroe Street Pool, reclassification of six (6) EMT positions to Paramedic Firefighters, 2026 general election expenditures, as well as various operational increases due to inflation.

Another way of looking at the General Fund budget is by Program Expenditures. The chart below compares the
total fiscal year 2026-27 budget to those amounts adopted in the previous year. A detailed description of each
department, its services, budget summary and department accomplishments and priorities can be found in the
department program summary pages.

Budget Budget $ %
2025-26 2026-27 Change Ch ange
Administrative Services - Administration 0.9$ 0.9$ - 4.9% Administrative Services - Finance 6.2 6.6 0.4 6.5% Administrative Services - Human Resources 5.6 5.5 (0.1) -1.5% Administrative Services - Economic Development 1.0 1.0 - 1.2% Community Services - Administration 0.6 0.7 0.1 5.3% Community Services - Community Development 12.0 12.0 - 0.6% Community Services - Housing & Homeless Services 3.3 3.7 0.4 12.2% Community Services - Library & Cultural Arts 15.7 16.4 0.7 4.7% Community Services - Parks & Recreation 24.2 25.1 0.9 3.7% Policy & Leadership Group 9.0 9.9 0.9 10.0% Public Safety - Fire 47.3 48.9 1.6 3.3% Public Safety - Police 64.1 68.5 4.4 6.8% Public Works - Administration 1.5 1.5 - 0.2% Public Works - Construction Mgmt. & Inspection 3.3 3.4 0.1 3.9% Public Works - Environmental Sustainability 1.7 1.5 (0.2) -11.3% Public Works - Facilities 7.6 7.9 0.3 4.1% Public Works - Transportation 12.2 12.5 0.3 2.5% Non-Departmental 26.3 23.1 (3.2) -12.3% Total 242.4$ 249.1$ 6.7 2.8%

GENERAL FUND EXPENDITURES
By Department
(In Millions)

A detailed description of each
department’s budget can be
found in the department
program summaries.

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Transfers are amounts anticipated to be transferred from the General Fund to another city fund.

The transfers included in the adopted budget are as follows:

• $15.0 million split evenly between the Infrastructure Replacement Fund, General Capital Construction Fund and Technology Investment Capital Fund. This will fund major new construction, maintenance and replacement of city infrastructure and facilities, and the city’s future technology needs. This represents 6% of budgeted General Fund revenues and is in line with the requirements set forth in Council Policy 91, Long Term General Fund Capital Funding Policy.
• $5.0 million to the Storm Water Program for reimbursement of the General Fund portion of Storm Water expenses as well as a one-time operating subsidy to ensure the program maintains a positive fund balance. In recent years, the program has been drawing down on excess reserve funds; however, on an ongoing basis, future expenses are expected to far outpace future revenues. Without additional ongoing revenue, assistance from the General Fund may be needed on an annual basis.
• $1.2 million to the Median Maintenance and Street Tree Maintenance Special Revenue Funds to cover cash shortfalls, as annual assessments collected from property owners do not cover annual operating expenditures. Annual assessments can only be increased with a majority vote of the property owners.

General Fund Summary
The operating budget for fiscal year 2026-27 provides a balanced General Fund budget for the coming fiscal year with General Fund revenue estimates exceeding General Fund budgeted expenditures by $0.6 million.

Fiscal Year 2026-27 General Fund Operating Budget
General Fund fiscal year 2026-27 revenue estimates $ 249.6 million General Fund fiscal year 2026-27 preliminary expenditures $24 9.1 million Initial projected operating surplus for fiscal year 2026-27 $ 0.5 million Use of Asset Replacement Reserve for one-time costs $ 0.2 million Effective operating fund surplus for fiscal year 2026-27 $ 0.7 million

General Fund Reserves
Projected unassigned balance at June 30, 2026 $1 44.4 million Plus: effective fiscal year 2026-27 surplus $0.7 million Equals: projected unassigned balance at June 30, 2027 $145.1 million

Asset Replacement Reserve
The city commits to maintaining its large machinery and equipment inventory. When an asset is procured, it begins depreciating the moment it is put into service and needs to be replaced at the end of its respective useful life. The city’s large equipment inventory represents approximately $60 million of the city’s total fixed assets. On an annual basis, this translates to a significant financial need and commitment to maintain the inventory. In an effort to not only prioritize these purchases, but to strategically plan for the ongoing financial impacts, staff recommend establishing a General Fund Asset Replacement Reserve. Separate and apart from the General Fund Reserve (City Council Policy 74), this Asset Replacement Reserve will serve as a mechanism for funding large machinery and June 16, 2026
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equipment needs without impacting the General Fund Reserve or annual budget surplus year after year. 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. The asset replacement schedule can be found in the appendices.

Changes in Other Funds
Special Revenue funds are budgeted at $26.5 million representing an increase in expenditures of

7.0% or $1.7 million when compared to fiscal year 2025-26. Other than a $1.2 million increase in rental assistance programming, and small increases across several other funds such as the Opioid Settlement Fund, Median Maintenance, and Citizens’ Option for Public Safety grant fund, s pending in most Special Revenue Fund programs is expected to remain relatively consistent.

Enterprise funds total $129.7 million, which represents a decrease of $17.2 million or 11.7% over the fiscal year 2025-26 adopted budget. The majority of this decrease is due to a one-time budgeted transfer from the Recycled Water Operating Fund to the Recycled Water Connection Fund of $16.4 million that occurred in fiscal year 2025-26 and not required in the fiscal year 2026-27 budget. This is related to a State Water Resources Control Board loan reaching the payback period, whereby the Recycled Water Operating Fund will begin repayment while the proceeds of the loan will remain in the associated capital fund. Additionally, transfers from the Potable Water and Wastewater funds are decreasing. These large decreases are offset by increases in core operational costs for the city’s Utilities funds. The Potable Water and Recycled Water funds continue to operate and maintain critical infrastructure systems and provide the safe delivery of drinking water, conservation outreach and treated irrigation water. The cost of purchased water continues to increase, causing an overall increase in the Potable Water budget. The Wastewater fund provides reliable wastewater collection services. The budget for this fund’s increase is primarily due to an increase in the transfers out to fund its related capital improvement fund. The Solid Waste Management budget is also increasing due to inflationary impacts to operating costs, including the city’s street sweeping contract.

The
Internal Service funds total $43.9 million, which represents an overall decrease of $0.6 million or 1.3% over fiscal year 2025-26. Much of the increase in Workers’ Compensation costs is attributable to rising insurance liability rates, claims filed and administrative costs. Vehicle Replacement is the largest contributor to the decrease and driven by a lower number of more costly vehicles scheduled for purchase in the upcoming year; this is cyclical and based on fleet replacement schedules.

Information Technology is $.08 million or 4.2% higher than the previous year, which is largely due to contractual service increases.

The budget for the
Successor Agency Housing Trust Fund for fiscal year 2026-27 is remaining at zero budget for fiscal year 2026-27. The Recognized Obligation Payments Schedule identifies financial commitments of the former Redevelopment Agency, including the remaining scheduled debt service payments on the Redevelopment Agency bond issue, the outstanding loan from the city’s General F und and minor allowable administrative costs. The last debt service payment on the bond issue was completed in September 2023 and the city loan was paid off in fiscal year 2020-21. In fiscal year 2026- 27, the city will work to complete the dissolution and close the fund.

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Changes to Fund Balance
While the projected cumulative change in the city’s non-major operating funds’ ending balances is not significant, three major operating funds are projected to see changes in their fund balances greater than 10%. The Water Operations Fund is expected to decrease by 21.4% , largely due to increasing operations costs, primarily water purchases. The Recycled Water Operations Fund and Wastewater Operations Fund are expected to decrease by 98.5% and 17.7%, respectively, by $1.1 million each . This is due to operating costs outpacing revenues in the upcoming fiscal year . All three funds have positive fund balances as of fiscal year end 2026-27, and it is anticipated the Utilities Department will complete a rate study in the subsequent year to address any ongoing funding challenges.

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PERSONNEL ALLOCATIONS
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.

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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.

June 16, 2026
Item #6 Page 528 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 B-24

SCHEDULE OF PROJECTED FUND BALANC E

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 529 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 B-25

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$ Interest is calculated on an amortized cost basis.

June 16, 2026
Item #6 Page 530 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 B-26

SCHEDULE OF REVENUE ESTIMATES

2025-26 2026-27 Ch ange 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 531 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 B-27

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
Encamptment 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)
Interest 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 532 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 B-28

SCHEDULE OF REVENUE ESTIMATES

2025-26 2026-27 Ch ange 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 533 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 B-29

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 534 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 B-30

SCHEDULE OF REVENUE ESTIMATES

2025-26 2026-27 Change as % Difference
2024-25 Es timated 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 535 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 B-31

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
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
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SCHEDULE OF BUDGET EXPENDITURES

2025-26 Change as %
2023-24 2024-25 Estimated 2025-26 2026-27 o f 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 Maintenance - - - - - - Transfer to Fleet Replacement - 560,000 - - - - Transfer to Risk Management 10,200,000 - - - - - Transfer to Workers' Compensation Fund 1,300,000 7,000,000 - - - - Other Miscellaneous Transfers - - - - - - 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
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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
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H-1

STRATEGIC DIGITAL TRANSFORMATION

INVESTMENT PROGRAM
The
Strategic Digital Transformation Investment Program, or SDTIP, is a comprehensive approach to planning for and funding digital transformation efforts throughout the city. Several documents inform this program, including the City Council-approved Connected Carlsbad: An Inclusive City Innovation Roadmap, the Internal Digital Information Network Action Plan and the Information Technology Strategy, which are complemented by a five-year projected roadmap of digital transformation investments. The SDTIP is the strategic plan for technology and digital transformation combined with project descriptions, costs, funding sources and timelines. The purpose of this program is to provide for an annual investment strategy, not a commitment to spending, that outlines a five-year expenditure plan for future digital transformation and technology projects and the corresponding revenues necessary to pay for them.

Connected Carlsbad: An Inclusive City Innovation Roadmap In January 2019, city staff presented Connected Carlsbad: An Inclusive City Innovation Roadmap, designed to provide a high-level, organized guide outlining the principles that matter to the city in creating a more connected community. This roadmap and its associated action plan were based on a combination of items, including:
• City Council approved projects,
• existing city documents,
• previous Information Technology assessments and interviews with departments, and • a global scan of other cities and best practices that have emerged from leading smart city thinkers and Carlsbad-specific community engagement.

The
SDTIP expands on the Connected Carlsbad Roadmap to include a strategy for evaluating and prioritizing projects and a five-year investment roadmap that includes estimated costs and timelines.

This new investment program continues to be organized into the five primary goal areas approved by City Council in Connected Carlsbad, listed below.
• Pursue Communitywide Digital Transformation focuses on the foundational elements, including connectivity, up-to-date hardware and software, and a robust security strategy while providing an aspirational vision for the future.
• Build Capacity for Data-Driven Government focuses on the policies, procedures and staffing necessary for the city to fully capture the value of emerging models of data analytics. • Foster a Vibrant Civic Engagement Culture leverages the first two goals by adopting a human-centered approach. It ensures that as the city uses data and technology, it respects people's privacy and fosters a culture where residents, organizations, and businesses are actively engaged and invested in the community and its future. • Enhance Accessibility and Transparency recognizes that open government and approaching problem-solving from an accessibility perspective leads to better outcomes for all. • Promote Safety and Sustainability through Connectivity leads to understanding the interconnected nature of our communities that can achieve environmental, mobility and sustainability goals when approached in a cross-departmental and community informed manner.

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Once the City Council adopts the proposed SDTIP, projects receive an appropriation that authorizes spending in the amount specified for the adopted fiscal year only. Estimated budget information is shown for a five-year period to provide the most comprehensive information about known future projects. Spending authority in future years is not granted until adoption of the annual proposed SDTIP budget associated with each year.

INVESTING IN DIGITAL TRANSFORMATION

As the city continues to grow and develop, the use of technology has also grown exponentially over the last two decades. The SDTIP outlines the financial resources needed to ensure that the technology infrastructure is in place to enable the city to provide services to the community. Prudent financial planning will ensure that ongoing funding for investment in technology is available.

PROJECT EVALUATION

Making decisions on technology implementations is a challenging and complex task. The challenging nature of these decisions is exacerbated by the expanding reach of technology and the increasingly interdisciplinary nature of emerging technologies. A major component of the SDTIP is the establishment of a cross-departmental approach to technology leadership to evaluate, prioritize, budget for and adopt digital transformation efforts. A new administrative order has been developed that provides a collaborative forum for key staff to validate and prioritize technology implementations. This approach also provides a structured venue to explore how particular configurations of technology implementation may positively or negatively affect others within the organization. The process to evaluate digital transformation initiatives is ongoing and meetings may be held on a monthly, bimonthly or quarterly basis depending on the need .

Several factors are considered when putting together projects for the five-year program. All digital transformation and technology projects shall be consistent with:

Strategic
Digital
Transformation
Investment
Program
Public Health
and Safety
City Mission,
Vision and
Organizational
Values
Community
Values
City Council
Goals
Governing
and Policy
Documents
Funding
Availability
Environmental
Review
Technology
Standards
and Strategic
Plans
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Criteria

Proposed projects are evaluated and prioritized by a set of criteria that include:

Alignment with City Council goals and IT strategic plans, architecture, security and technology standards, including legislative and regulatory mandates, and administrative goals

Coordination of IT investments across the enterprise to avoid duplication, maximizing the return on investment and increasing efficiency

Effective articulation of the business case including valid operational benefits of the project

Accuracy and reasonableness of cost and benefit estimates

Consideration of potential project risks and identification of appropriate means to manage those risks

Adherence to standard project management practices

Capacity of staffing resources to implement the project As the SDTIP is implemented throughout the year, staff continually re-evaluate projects’ scopes, costs and schedules to responsibly and cost-effectively manage city resources.

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STRATEGIC DIGITAL TRANSFORMATION

INVESTMENT PROGRAM PROJECTS

The following contains information about the projects in the SDTIP. Full project pages are provided for the major new projects being requested for fiscal year 2026-27 and prior approved major projects that have changes in funding needs or project requirements. The estimated annual operational and replacement cost increases shown on each project page represent a departmental budgetary increase—generally to the Information Technology Department and its internal service citywide chargeback—separate from Capital Technology Fund activity. Projects for fiscal year 2026-27 and beyond are included in the graphs and tables provided but will not have full project pages until the first year of funding. Projects with no changes and projects that have been completed or removed going into fiscal year 2026-27 are listed below. Full details of these projects can be found in the appropriate prior fiscal year budget documents based on when they were new or had changes.

Fiscal Year 2021-22 Continuing Projects – No Changes
The following project was approved during the fiscal year 2021-22 SDTIP and has no changes to its funding needs or project requirements and is still in process. This project is included in the totals of the various graphs and charts shown in the SDTIP.
• Online Permitting/Electronic Reviews, also known as E-Reviews

Fiscal Year 2022-23 Continuing Projects – No Changes
The following projects were approved during the fiscal year 2022-23 SDTIP and have no changes to their funding needs or project requirements and are still in process. These projects are included in the totals of the various graphs and charts shown in the SDTIP. • Civic Engagement with Open Data
• Computer Aided Dispatch
• Live 911

Fiscal Year 2023-24 Continuing Projects – No Changes
The following projects were approved during the fiscal year 2023-24 SDTIP and have no changes to their funding needs or project requirements and are still in process. These projects are included in the totals of the various graphs and charts shown in the SDTIP. • Business Process Automation
• Expansion of Yardi
• Records Digitization

Fiscal Year 2024-25 Continuing Projects – No Changes
The following projects were approved during the fiscal year 2023-24 SDTIP and have no changes to their funding needs or project requirements and are still in process. These projects are included in the totals of the various graphs and charts shown in the SDTIP. • Data Governance and Operations Analytics
• Payment Card Industry (PCI) Compliance
• RFID Replacement
• Virtual Reality (VR) Training
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Fiscal Year 2025-26 Continuing Projects – No Changes
• Early Literacy Interactive Technology
• Facility Monitoring and Analytics
• Police Records Management System
• Website Redesign

Completed, Removed or Delayed Projects
The following projects were completed, removed or delayed during fiscal year 2025-26. The completed projects are not part of the totals of the various graphs and charts . Removed projects are only included if the project was previously funded; the removed funding is shown as a reduction in the current year’s appropriations. If a project was previously funded and new funding was delayed, the appropriate graphs and charts reflect the updated funding year.

Completed
• Construction Waste Management Tracking
• Enterprise Asset Management System
• Professional Technical Services for Data Project Delivery • Risk Management Solution Assessment
• Senior Center Resource Access Enhancement
• Station Alerting Equipment Replacement
• Utility Billing Portal
• 3D Concepts & Walkthrough
• Facility Monitoring and Analytics Pilot
• Records Management Module
• Records Management Archive Solution

Removed
• Police Records Management Migration
• Discovery Management Assessment
• G uest Facility Usage Analytics

Delayed
There are no projects previously approved being delayed.

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ESTIMATED TOTAL APPROPRIATIONS BY
GOAL
Going into fiscal year 2026-27, there are 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 approximately $17.9 million in estimated new costs over the course of the same time frame to provide additional funding for the continuation of existing projects as well as funding for new projects. Within the $17.9 million is approximately $6.6 million of estimated new appropriations for fiscal year 2026-27 for these same projects.

Build Capac ity for
Data -driven
De ci sion Ma king,
$1,073,000 - 3%
Enhance
Accessibility and
Tra ns parency,
$1,261,000 - 3%
Foster a Vibrant
C iv ic Engag emen t
Culture ,
$1,425,000 - 3%
Promote Se curity a nd
Sustainability through
Connectivity ,
$15,089,293 - 36%Pursue Communitywide
Digital Transformation ,
$23,262,584 - 55%
Estimated Total Projects Costs by Goal
FY 2026-27 to FY 2030-31
$42.1 million
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Fiscal year 2026-27 estimated total appropriations by project goal

Pursue Communitywide Digital Transformation
$23.3 million
This goal includes updating connectivity, up-to-date hardware and software, and a robust security strategy.

Build Capacity for Data-Driven Decision Making
$1.1 million
This goal’s projects include the policies, procedures and staffing necessary for the city to fully capture the value of emerging models of data analytics. It builds a comprehensive approach to citywide data management to enable data-rich key performance metrics and effective operation of city departments. A data policy and resources will be created to align departments with standards of data cataloging for compliance ease of data sharing.

Foster a Vibrant Civic Engagement Culture
$1.4 million
The city’s civic engagement culture builds upon the first two goals with a human-centered perspective to use data and technology in a way that respects people and their privacy. Projects in this category will support a vibrant culture where residents, organizations and businesses are invested in their community and its future.

Enhance Accessibility and Transparency
$1.2 million
This goal recognizes that open government and approaching problem-solving from an accessibility perspective leads to better outcomes for all. Projects in this category include Civic Engagement with Open Data, Online Permitting/Electronic Reviews.

Promote Security and Sustainability through Connectivity $15.1 million
Projects in this goal include the annual replacement of hardware and technology infrastructure, a Facility Security Master Plan, the replacement of the Police Computer Aided Dispatch System, and an enhancement to the 911 emergency system.

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PROJECTS

PURSUE COMMUNITYWIDE DIGITAL

TRANSFORMATION

Core System Modernization & Phase II

Project Benefits
Without systems that can talk to each other, the city wastes time and resources manually compiling and integrating data. This greatly affects the city’s ability to make data-driven decisions, which are needed to ensure the highest and best use of taxpayer resources. Having fewer systems that consolidate the city’s core business functions will enable streamlined business processes and provide more timely access to data and information. It will also enhance operations and reduce the inefficiencies of employees having to learn and operate multiple systems.

About This Project
This project provides for the consolidation and replacement of the city’s core systems. There are approximately 20 core systems including the city’s financial, human resources, payroll, budget, asset and work order management, licensing and permitting, utilities operations, computer -aided dispatch, land management, and program-event management. Rather than operate many systems with narrow applicability, the city is evaluating ways to consolidate its core systems as legacy applications are replaced. This may mean accelerated replacement for certain systems. The goal is to reduce redundancy and inefficiency associated with operating many different systems with different vendors.

Project Funding Source:

Technology Investment 1 2,500,000$
Managing Department:

Information Technology
Estimated Annual Costs
Increase/(Decrease):

Operational 525,000$
Replacement None
Prior Year Req FY26-27 Est FY27-28 Est FY28-29 Est FY30-31 Total Funding Source Budget Budget Budget Budget Budget Budget Tech. Investment 8,400,000$ 3,600,000$ 500,000$ -$ -$ 12,500,000$ Est FY29-30
Budget
-$
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Consolidating down to a few systems that seamlessly integrate data and provide a more uniform interface will improve the experience of city employees and the public. The scope of this multi -year initiative includes the analysis, selection, purchase and imp lementation of the software and hardware necessary to consolidate, replace and integrate these systems with as few systems as possible while maintaining or enhancing existing capabilities.

In April 2025, the City Council approved the agreements associated with Core Systems Modernization and the implementation project officially kicked off in May. Work to implement the new solutions is ongoing and the new systems are expected to go live midyear during fiscal year 2026-27. City staff are currently requesting funding of $3.6 million in fiscal year 2026-27 for acquisition, initial implementation and extended implementation. Phase II for the project will request an estimated $0.5 million in funding for the continued enhancement of the new system as part of the fiscal year 2027- 28 SDTIP.

Staff estimate that operational costs will increase by $525,000 in the first year of implementation and $100,000 annually for four years after implementation, but there will be no equipment replacement costs associated with the project.

Connected Carlsbad Goal
Pursue Communitywide Digital Transformation

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Digital Information Network

Project Benefits
The city’s upgraded digital information network provides faster, more secure connections that support a wide range of essential services. It powers critical operations such as public safety systems, email, internet access, traffic management systems, and internal city communications. It also enables reliable Wi-Fi and internet service at public facilities, helping to improve access for both staff and the community. Overall, this investment supports more efficient c ity operations and better service delivery to residents.

About This Project
The city operates on a leased fiber network that provides modern, high‑speed connectivity for staff, facilities and essential services. As we continue building toward a more resilient, reliable and cost‑effective city‑managed network, our efforts are focused on strengthening service continuity, improving long‑term performance and enhancing the city’s overall cybersecurity posture.

Current efforts are centered on improving the communications that support the city’s traffic signal network, enhancing safety, coordination and responsiveness along city streets . Additional efforts are also underway to boost the reliability of the city’s utility SCADA systems, helping ensure continuous monitoring and consistent delivery of essential services. Additional work includes extending and upgrading connectivity between city facilities and expanding outdoor wireless access at parks across the community.

Connected Carlsbad Goal
Pursue Communitywide Digital Transformation

Project Funding Source:

Technology Investment 6 ,525,584$
Managing Department:

Information Technology
Estimated Annual Costs
Increase/(Decrease):

Operational 75,000$
Replacement 100,000$
Prior Year Req FY26-27 Est FY27-28 Est FY28-29 Est FY30-31 Total Funding Source Budget Budget Budget Budget Budget Budget Tech. Investment 6,275,584$ 250,000$ -$ -$ -$ 6,525,584$ Est FY29-30
Budget
-$
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Intersection Traffic Detection Upgrades

Project Benefits
Ensure the ongoing reliability and sustainability of the city’s traffic management network.

About This Project
The current traffic detection equipment at intersections along Rancho Santa Fe is outdated, resulting in inefficiencies in traffic flow and increased maintenance costs. The existing detection system was discontinued in 2022, and spare components are no longer available. This project will replace and upgrade the traffic detection equipment at 11 intersections along Rancho Santa Fe Road in fiscal year 2026-27 and then the following years at Palomar Airport Road and El Camino Real .

Connected Carlsbad Goal
Pursue Communitywide Digital Transformation

Project Funding Source:

Technology Investment 1, 500,000$
Managing Department:

Transportation
Estimated Annual Costs
Increase/(Decrease):

BUILD CAPACITY FOR DATA- DRIVEN DECISION
MAKING
There are no projects being funded for this category in fiscal year 2026- 27.

FOSTER A VIBRANT CIVIC ENGAGEMENT

CULTURE

Audiovisual Upgrades

Project Benefits
This project allows for the standardization of audiovisual equipment within the city’s work facilities so personnel can conduct business with internal and external resources virtually without the need to move between facilities for meetings.

About This Project
This project provides for upgrades and growth of the city’ s audiovisual equipment. The work landscape has changed—audiovisual equipment that previously supported in-person meetings in a room are now supporting meetings held virtually. The IT Department will update and maintain audiovisual equipment to meet this new work environment and other necessary enhancements to legacy technology.

There are no changes to annual operational costs associated with this project. City staff cannot feasibly estimate replacement costs, if any, until after the new equipment is purchased.

Connected Carlsbad Goal
Foster a Vibrant Civic Engagement Culture
Project Funding Source:

Technology Investment 1 ,425,000$
Managing Department:

Information Technology
Estimated Annual Costs
Increase/(Decrease):

Operational None
Replacement Not known
Prior Year Req FY26-27 Est FY27-28 Est FY28-29 Est FY30-31 Total Funding Source Budget Budget Budget Budget Budget Budget Tech. Investment 925,000$ 100,000$ 100,000$ 100,000$ 100,000$ 1,425,000$ Est FY29-30
Budget
100,000$
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ENHANCE ACCESSIBILITY AND TRANSPARENCY

Online Services ADA Compliance

Project Benefits
Ensuring that members of the Carlsbad community who rely on screen readers, captions , or keyboard navigation have access to content on the city’s digital platforms.

About This Project
In April 2024, the Department of Justice finalized a rule clarifying how Title II of the Americans with Disabilities Act applies to services provided by state and local governments. Effective April 2027, these new regulations impose mandatory accessibility requirements for websites, mobile applications, and other digital content provided by the city to ensure that they are accessible to individuals with disabilities. City staff are currently working with a third-party accessibility consultant to conduct accessibility audits of the city’s websites and to develop and facilitate accessibility training for city staff. The next phase of the project will include working with the accessibility consultant to conduct validation testing of the accessibility of third-party services and content.

Connected Carlsbad Goal
Enhance Accessibility and Transparency

Project Funding Source:

Technology Investment 100,000$
Managing Department:

Information Technology
Estimated Annual Costs
Increase/(Decrease):

Operational 30,000
Replacement NA
Prior Year Req FY26-27 Est FY27-28 Est FY28-29 Est FY30-31 Total Funding Source Budget Budget Budget Budget Budget Budget Tech. Investment -$ 100,000$ -$ -$ -$ 100,000$ Est FY29-30
Budget
-$
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PROMOTE SECURITY AND SUSTAINABILITY

THROUGH CONNECTIVITY

Annual Hardware and Infrastructure Replacement

Project Benefits
Citywide hardware and infrastructure changes are necessary and ongoing. Replacement equipment is needed to support the city's technology infrastructure and department-specific needs.

About This Project
This project provides replacement equipment funding for scheduled replacement of laptops, desktops, internal servers, routers, switches and other network and data center requirements.

There is no increase or decrease in operational costs associated with the annual replacement program. Due to the circular nature of the replacement program, replacement costs fluctuate annually depending on the hardware life cycles which can range from three years to 10 years.

Connected Carlsbad Goal
Promote Security and Sustainability through Connectivity

Project Funding Source:

IT Replacement Fund 6,478,913$
Managing Department:

Information Technology
Estimated Annual Costs
Increase/(Decrease):

Operational None
Replacement None
Prior Year Req FY26-27 Est FY27-28 Est FY28-29 Est FY30-31 Total Funding Source Budget Budget Budget Budget Budget Budget IT Repl acement 1,390,602$ 688,311$ 1,200,000$ 1,200,000$ 1,200,000$ 6,478,913$ Est FY29-30
Budget
800,000$
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Automated License Plate Reader Replacement

Project Benefits
License plate readers capture images of license plates then use software to compare them against a law enforcement database that is used to identify stolen vehicles, stolen license plates, missing persons and vehicles associated with people who have been involved in criminal or terrorist activities.

They may also be used to gather information related to homeland security, human trafficking and stolen property.

About This Project
There are currently license plate readers installed at 128 fixed locations and 24 mobile cameras installed on police vehicles that were installed in 2022 and are nearing end of life and end of warranty. This project will involve issuance of a Request for Proposal (RFP) to select, acquire and implement a new solution along with new cameras to replace the existing end -of-life equipment.

Connected Carlsbad Goal
Promote Security and Sustainability through Connectivity

Project Funding Source:

Technology Investment 1,000,000$
Managing Department:

Information Technology
Estimated Annual Costs
Increase/(Decrease):

Operational 120,000
Replacement NA
Prior Year Req FY26-27 Est FY27-28 Est FY28-29 Est FY30-31 Total Funding Source Budget Budget Budget Budget Budget Budget Tech. Investment -$ 500,000$ 500,000$ -$ -$ 1,000,000$ Est FY29-30
Budget
-$
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Cybersecurity Program Development

Project Benefits
As a result of internal assessments and evaluations by external parties, city staff have identified certain initiatives within the six functions of the cybersecurity framework to translate into projects.

Implementation of these projects will require funding for assessments and evaluations, implementation, and staff training. Once the enhanced security infrastructure is in place, operational costs will move to the operations budget. City staff identified and planned the following projects for implementation:
• Disaster Recovery program assessment and development
• Migration to a cloud-native security information and event management solution • Cybersecurity governance program
• External attack surface visibility and risk reduction capabilities • Expanded managed security service provide support for cloud monitoring of the security information and event management solution
• Incident response procedure development and training

About This Project
The cybersecurity program provides support and protection to the City of Carlsbad so it can successfully accomplish its mission. As the threat landscape is changing and getting more sophisticated in lockstep with advances in technology, we need to ensure the city’s cybersecurity program is robust enough to keep threat actors from causing harm to the c ity.

To ensure we address the different areas and aspects of cybersecurity, city staff have developed and adopted an approach based on the National Institute of Standards and Technology Cybersecurity Framework to cybersecurity defense program which covers six functions:
• Identify – Develop the organizational understanding to manage cybersecurity risk to systems, assets, data and capabilities. The activities in this function are foundational for Project Funding Source:

Technology Investment 1 ,250,000$
Managing Department:

Information Technology
Estimated Annual Costs
Increase/(Decrease):

Operational Not known
Replacement Not known
Prior Year Req FY26-27 Est FY27-28 Est FY28-29 Est FY30-31 Total Funding Source Budget Budget Budget Budget Budget Budget Tech. Investment 750,000$ 100,000$ 100,000$ 100,000$ 100,000$ 1,250,000$ 100,000$ Est FY29-30
Budget
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effective use of the Framework. Understanding the business context, the resources that support critical functions and the related cybersecurity risks enables an organization to focus and prioritize its efforts, consistent with its risk management strategy and business needs.

Examples of outcome categories within this function include Asset Management, Business Environment, Governance, Risk Assessment and Risk Management Strategy. • Protect – Develop and implement the appropriate safeguards to ensure delivery of critical infrastructure services. The Protect function supports the ability to limit or contain the impact of a potential cybersecurity event. Examples of outcome categories within this function include Access Control, Awareness and Training, Data Security, Information Protection Processes and Procedures, Maintenance, and Protective Technology. • Detect – Develop and implement the appropriate activities to identify the occurrence of a cybersecurity event. The Detect function enables timely discovery of cybersecurity events.

Examples of outcome categories within this function include Anomalies and Events, Security Continuous Monitoring, and Detection Processes.
• Respond – Develop and implement the appropriate activities to act regarding a detected cybersecurity event. The Respond function supports the ability to contain the impact of a potential cybersecurity event. Examples of outcome categories within this f unction include Response Planning, Communications, Analysis, Mitigation and Improvements. • Recover – Develop and implement the appropriate activities to maintain plans for resilience and to restore any capabilities or services that were impaired due to a cybersecurity event.

The Recover function supports timely recovery to normal operations to reduce the impact from a cybersecurity event. Examples of outcome categories within this f unction include Recovery Planning, Improvements and Communications.
• Govern – Establish and maintain the organizational oversight to manage and align cybersecurity activities with mission and stakeholder expectations. The Govern function supports effective decision-making through defined roles and responsibilities, strategy and policy development, and oversight of cybersecurity and supply chain risk. Examples of outcome categories within this function include Organizational Context, Risk Management Strategy, Supply Chain Risk Management, Roles and Responsibilities, Policy, and Ove rsight.

At this time, and depending on the types of programs implemented over the course of the project , city staff cannot feasibly determine any operational or replacement costs for fiscal year 2026-27 and beyond. No new operational or replacement costs were requested for the fiscal year 202 5-26 budget cycle.

Connected Carlsbad Goal
Promote Security and Sustainability through Connectivity

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Facility Security Master Plan

Project Benefits
The modernization of the public safety video monitoring environment provides substantial organizational, operational, and public‑safety benefits. By standardizing camera hardware, placement practices, and lifecycle management, the project replaces the inconsistent and fragmented approaches previously used across departments. This unified framework ensures higher and more reliable video quality, supported by a system that offers improved performance, scalable storage, and long‑term maintainability. This was a key improvement initiative that was an output from the Facility Security Master Plan.

About This Project
The Facility Security Master Plan was originally meant to provide a citywide, strategic, approach to the deployment of various physical security improvements around the city. During final drafting of the plan, it was decided to separate non-technical elements of the plan to be addressed by other projects and programs. Thus, leaving the deployment of cameras citywide as part of this project.

Going forward, this project modernizes and standardizes public safety video monitoring infrastructure. It will involve a multi‑phase installation of new and replacement cameras across prioritized locations. When complete, this system will provide a unified, modern platform that supports both operational security and future initiatives in Public Safety.

Connected Carlsbad Goal
Promote Security and Sustainability through Connectivity Project Funding Source:

Technology Investment 2,039,000$
Managing Department:

Information Technology
Estimated Annual Costs
Increase/(Decrease):

Operational 100,000
Replacement NA
Prior Year Req FY26-27 Est FY27-28 Est FY28-29 Est FY30-31 Total Funding Source Budget Budget Budget Budget Budget Budget Tech. Investment 200,000$ 721,000$ 311,000$ 438,000$ -$ 2,039,000$ Budget
Est FY29-30
369,000$
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MINOR PROJECTS
There are no minor projects being funded in fiscal year 2026-27.

FUTURE PROJECTS

Estimated fiscal year 2026-27 through 2030-31 appropriations by goal The City of Carlsbad’s SDTIP for fiscal year 2026-27 to fiscal year 2030-31 outlines 35 projects at an estimated total cost of $42.1 million. Of the $42.1 million, $17.9 million is for new or increased funding for projects over the next five years. The information provided for future years reflects the most comprehensive snapshot of known or anticipated future projects as well as associate d estimated costs.

Build Capac ity for Data-
dri ve n Decision Ma king,
$50,000 - 0%
Enhance Accessi bil it y
a nd Tra nsparency,
$160,000 - 1%
Foster a Vibrant
C iv ic Engag emen t
Culture ,
$500,000 - 3%
Promote Se curity a nd
Sustainability through
Connectivity ,
$9,277,311 - 52%
Pursue Communitywide
Digital Transformation ,
$7,925,000 - 44%
Estimated Future Projects Costs by Goal
FY 2026-27 to FY 2030-31
$17.9 million
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Estimated Fiscal Year 2026-27 Appropriations by Goal
The fiscal year 2026-27 SDTIP outlines $6.6 million in new appropriations for fiscal year 2026-27 to provide additional funding for the continuation of existing projects as well as funding for new projects.

Estimated fiscal year 2027-28 through 2030-31 pending current or new projects with future funding requests
The projects listed in the table below represent projects that have been presented to the SDTIP Committee but do not require funding or have been delayed for the fiscal year 2026-27 budget year.

These projects will be reevaluated for the fiscal year 2027-28 budget year and, if approved for funding in fiscal year 2027-28, will then have a project page included as part of the SDTIP in the appropriate subsequent fiscal year. These projects have been included in the estimated five-year tables and funding projections.

Connected Requested Es timated Estimated Estimated Estimated Estimated Carlsbad Funding Prior Year 1 Year 2 Year 3 Year 4 Year 5 Total Goal Source Appropriation 2026-27 2027-28 2028-29 2029-30 2030-31 Funding Core Systems Modernization Phase II PCDT TICF - - 500,000 - - - 500,000 Integrated Library Solution PCDT TICF - - 1,000,000 - - - 1,000,000 Phone System Migration PCDT TICF - - 200,000 - - - 200,000 Staff Citywide Printer Replacement PCDT IT RF - - - - 800,000 - 800,000 Website Migration PCDT TI CF - - 75,000 - - - 75,000 Aerial Topographic Imagery BCDDM TICF - - 50,000 - - - 50,000 Interactive Application Navigator EAT TICF - - 60,000 - - - 60,000 After Hours Dispatch Solution PSSC TICF - - 100,000 - - - 100,000 Drone as a First Responder PSSC TICF - - 200,000 - - - 200,000 Police In-car Video PSSC TICF - - 350,000 - - - 350,000 Real Time Crime Center Infrastructure PSSC TICF - - 200,000 - - - 200,000 -$ -$ 2,735,000$ -$ 800,000$ -$ 3,535,000$ 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 Abbreviations
Inf
ormation Technology Replacement Fund = ITRF
Technology Investment Capital Fund = TICF
Utilities Enterprise Funds (Operating or Capital) = UEF Funding Source Not Identified = Pending
Project Name
Foster a Vibrant Civic
Engagement Culture ,
$100,000 - 1%
Enhance Accessi bil ity
a nd Tra nsparency,
$100,000 - 2%
Promote Se curity a nd
Sustainability through
Connectivity ,
$2,009,311 - 31%Pursue Communitywide
Digital Transformation ,
$4,350,000 - 66%
Requested
FY 2026-27 Appropriations by Goal
$6.6 million
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FIVE -YEAR SCHEDULE OF PROJECTS BY

CONNECTED CARLSBAD GOAL

Requested Estimated Estimated Es timated Estimated Estimated Funding Prior Year 1 Year 2 Year 3 Year 4 Year 5 Total
Project Name Source Appropriation 2026-27 2027-28 2028-29 2029-30 2030-31 Funding Core Systems Modernization TICF 8,400,000$ 3,600,000$ -$ -$ -$ -$ 12,000,000$ Core Systems Modernization Phase II TICF - - 500,000 - - - 500,000 Digital Information Network TICF 6,275,584 250,000 - - - - 6,525,584 Integrated Library Solution TICF - - 1,000,000 - - - 1,000,000 Intersection Traffic Detection Upgrades TICF - 500,000 500,000 500,000 - - 1,500,000 Payment Card Industry (PCI) Compliance TICF 62,000 - - - - - 62,000 Phone System Migration TICF - - 200,000 - - - 200,000 RFID Replacement TICF 600,000 - - - - - 600,000 Staff Citywide Printer Replacement ITRF - - - - 800,000 - 800,000 Website Migration TICF - - 75, 000 - - - 75,000 15,337,584 4,350,000 2,275,000 500,000 800,000 - 23,262,584 Aerial Topographic Imagery TICF - - 50,000 - - - 50,000 Business Process Automation TICF 300,000 - - - - - 300,000 Data Governance and Operational Analytics TICF 423,000 - - - - - 423,000 Facility Monitoring and Analytics TICF 300,000 - - - - - 300,000 1,023,000 - 50,000 - - - 1,073,000 Audio Visual Upgrades TICF 925,000 100,000 100,000 100,000 100,000 100,000 1,425,000 925,000 100,000 100,000 100,000 100,000 100,000 1,425,000 Civic Engagement with Open Data TICF 198,000 - - - - - 198,000 Early Literacy Interactive Technology TICF 78,000 - - - - - 78,000 Interactive Application Navigator TICF - - 60,000 - - - 60,000 Online Permitting/Electronic Reviews (E-Reviews) TICF 645,000 - - - - - 645,000 Online Services ADA Compliance TICF - 100,000 - - - - 100,000 Record Digitization TICF 100,000 - - - - - 100,000 Website Redesign TICF 50,000 - - - - - 50,000 Expansion of Yardi TICF 30,000 - - - - - 30,000 1,101,000 100,000 60,000 - - - 1, 261,000 After Hours Dispatch Solution TICF - - 100,000 - - - 100,000 Annual Hardware and Infrastructure Replacement ITRF 1,390,602 688,311 1,200,000 1,200,000 800,000 1,200,000 6,478,913 Automated License Plate Reader Replacement TICF - 500,000 500,000 - - - 1,000,000 Computer Aided Dispatch (CAD) TICF 1,580,000 - - - - 1,580,000 Cyber Security Program Development TICF 750,000 100,000 100,000 100,000 100,000 100,000 1,250,000 Drone as a First Responder TICF - - 200,000 - - - 200,000 Facility Security Master Plan TICF 200,000 721,000 311,000 438,000 369,000 - 2,039,000 Live 911 TICF 66,380 - - - - - 66,380 Police In-car Video TICF - - 350,000 - - - 350,000 Police Records Management System TICF 1,750,000 - - - - - 1,750,000 Real Time Crime Center Infrastructure TICF - - 200,000 - - - 200,000 Virtual Reality (VR) Training TICF 75,000 - - - - - 75,000 5,811,982 2,009,311 2,961,000 1,738,000 1,269,000 1,300,000 15,089,293 24,198,566$ 6,559,311$ 5,446,000$ 2,338,000$ 2,169,000$ 1,400,000$ 42,110,877$ Information Technology Replacement Fund = ITRF
Technology Investment Capital Fund = TICF
Utilities Enterprise Funds (Operating or Capital) = UEF Funding Source Not Identified = Pending
Foster a Vibrant Civic Engagement Culture
Projects Total
Funding Source Abbreviations
Promote Security and Sustainability through Connectivity Tota Foster a Vibrant Civic Engagement Culture Total
Enhance Accessibility and Transparency
Enhance Accessibility and Transparency Total
Promote Security and Sustainability through Connectivity Connected Carlsbad Goal
Pursue Communitywide Digital Transformation
Build Capacity for Data-driven Decision Making
Build Capacity for Data-driven Decision Making Total
Pursue Communitywide Digital Transformation Total
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FIVE -YEAR SCHEDULE OF PROJECTS BY FUND

Connected Requested Estimated Es timated 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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PROJECT FUNDING SOURCES

Technology Investment Capital Fund – Funds set aside on a yearly basis to fund ongoing SDTIP digital transformation and technology projects. Revenue is mostly comprised of an annual General Fund transfer, estimated based on a portion of the transfer of 6% of General Fund revenues, in accordance with City Council Policy 91, Long Term General Fund Capital Funding Policy.

Information Technology Replacement Fund – Funds are collected annually from the city’s operating departments as part of the IT Department internal service fund chargeback ; charges are based on an asset’s lifecycle and original cost. These funds are used to replace assets at the end of their useful lives.

Utilities Enterprise Funds (Operating or Capital) – For information regarding the Utilities Enterprise Funds, please see the Public Works Section of the Fiscal Year 2026-27 Operating Budget and for the Capital Funds please see the CIP Section of the Fiscal Year 202 6-27 Operating Budget.

There are currently no projects for this funding source.

Funding Source Not Identified – The funding for a project has not been identified or established at this time. Once the funding source is identified or established the project will reflect that source.

There are no projects in this category in fiscal year 2026-27.

PROJECTED FUND BALANCES

TECHNOLOGY INVESTMENT CAPITAL FUND

FUNDS AVAILABILITY PROJECTION
Estimated Requested Estimated Estimated Estimated Estimated Balance Year 1 Year 2 Year 3 Year 4 Year 5
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
3,201,869$ 2,621,231$ 3,708,455$ 8,061,275$ 13,142,726$ Transfers In 4,990,362 5,027,224 5,178,700 5,332,089 5,483,566 Interest Revenue 300,000 306,000 312,120 318,362 324,730 Project Appropriations 5,871,000 4,246,000 1,138,000 569,000 200,000 2,621,231$ 3,708,455$ 8,061,275$ 13,142,726$ 18,751,022$ 3,201,869$

INFORMATION TECHNOLOGY DEPARTMENT REPLACEMENT FUND

FUNDS AVAILABILITY PROJECTION
Estimated Requested Estimated Estimated Estimated Estimated Balance Year 1 Year 2 Year 3 Year 4 Year 5
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
3,710,333$ 3,690,879$ 3,220,879$ 2,750,879$ 1,880,879$ Replacement Cost Revenue 488,857 550,000 550,000 550,000 550,000 Interest Revenue 180,000 180,000 180,000 180,000 180,000 Replacement Appropriations 688,311 1,200,000 1,200,000 1,600,000 1,200,000 3,690,879$ 3,220,879$ 2,750,879$ 1,880,879$ 1,410,879$ 3,710,333$ Estimated Available Funds
Ending Available Balance
Beginning Available Balance
Beginning Available Balance
Ending Available Balance
Balance Available for Future Projects
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REVENUE PROJECTIONS SCHEDULE

BUDGET EXPENDITURE SCHEDULE

2022-23 2023-24 2024-25 2025-26 2026-27
Actual Actual Actual Projected Estimated
Revenue Revenue Revenue Revenue Revenue
Technology Investment Capital 4,127,866$ 4,526,422$ 5,275, 838$ 2,996,187$ 5,290,362$ Information Technology Department Replacement 1,576,979 1,659,663 1,906,580 1,762,301 668,857 Total 5,704,845$ 6,186,085$ 7,182,418$ 4,758,488$ 5,959,219$ Fund
2023-24 2024-25 2025-26 2026-27 2026-27 2026-27
Actual Actual Estimated Continuing New Total
Expense Expense Expense Appropriations Appropriations Appropriations Technology Investment Capital 1,349,059$ 4,392, 345$ 6,100,000$ 7,320,754$ 5,871,000$ 13,191,754$ Information Technology Department Replacement 1,225,243 1,066,315 950,000 1,306,310 688,311 1,994,621 Total 2,574,302$ 5,458,660$ 7, 050,000$ 8,627,064$ 6,559,311$ 15,186,375$ Fund
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PROJECT ESTIMATED OPERATIONAL

REQUIREMENTS

The projects listed on the table below represent projects that have been determined will have or may have operating budget impacts in the fiscal year identified. Projects that have zero shown for each fiscal year are pending an estimate due to the possible solution having too many unknown variables.

Once a more exact solution is identified, the operational estimate will be updated. As the fiscal years identified on the table become the next budgeting year, the Information Technology Department will request additional operating budget.

Total Year 1 Year 2 Year 3 Year 4 Year 5
Funding 2026-27 2027-28 2028-29 2029-30 2030-31 Totals
Aerial Topographic Imagery 50,000$ -$ -$ 5,000$ -$ -$ 5,000$ After Hours Dispatch Solution 100,000 - - 15,000 - - 15,000 Automated License Plate Reader Replacement 1,000,000 - - - - - - Business Process Automation 300,000 - - - - - - Civic Engagement with Open Data 198,000 - 25,000 - - - 25,000 Core Systems Modernization 12,000,000 525,000 100,000 100,000 100,000 - 825,000 Core Systems Modernization Phase II 500,000 - - - - 100,000 100,000 Cyber Security Program Development 1,250,000 - - - - - - Data Governance and Operational Analytics 423,000 - 50,000 - - - 50,000 Digital Information Network 6,525,584 32,000 50,000 - - - 82,000 Drone as a First Responder 200,000 - - 30,000 - - 30,000 Early Literacy Interactive Technology 78,000 4,800 - - - - 4,800 Facility Monitoring and Analytics 300,000 - - - - - - Facility Security Master Plan 2,039,000 - 150,000 150,000 150,000 150,000 600,000 Integrated Library Solution 1,000,000 - - - - - - Interactive Application Navigator 60,000 - - 7,000 - - 7,000 Intersection Traffic Detection Upgrades 1,500,000 - - - - - - Live 911 66,380 - 60,000 - - - 60,000 Online Permitting/Electronic Reviews (E-Reviews) 645,000 - - - - - - Online Services ADA Compliance 100,000 - 20,000 - - - 20,000 Payment Card Industry (PCI) Compliance 62,000 - - - - - - Phone System Migration 200,000 - - - - - - Police In-car Video 350,000 - - 100,000 - - 100,000 Police Records Management System 1,750,000 - 160,000 - - - 160,000 Real Time Crime Center Infrastructure 200,000 - - 30,000 - - 30,000 RFID Replacement 600,000 8,000 - - - - 8,000 Virtual Reality (VR) Training 75,000 - 5,000 - - - 5,000 31,571,964 $ 569,800$ 620,000$ 437,000$ 250,000$ 250,000$ 2,126,800$ June 16, 2026
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FISCAL YEAR 2026-27 ROADMAP

Strategic Digital Transformation Investment Program FY 2026-27 Schedule Legend: Project Ongoing

GOAL INITIATIVES
Core Systems Modernization
Digital Information Network
Payment Card Industry (PCI) Compliance
Intersection Traffic Detection Upgrades
RFID Replacement

GOAL INITIATIVES
Business Process Automation
Data Governance and Operational Anaytics

GOAL INITIATIVES
Audio Visual Upgrades

GOAL INITIATIVES
Civic Engagement with Open Data
Early Literacy Interactive Technology
Online Permitting/Electronic Reviews (E-Review)
Records Digitization
Online Services ADA Compliance
Website Redesign
Expansion of Yardi

GOAL INITIATIVES
Annual Hardware and Infrastructure Replacement
Automated License Plate Reader Replacement
Computer Aided Dispatch (CAD)
Cyber Security Program Development
Live 911
Facility Security Master Plan
Police Records Management
NOV
DEC
DEC
DEC
DEC
DEC
NOV
NOV
NOV
NOV
Pursue Community Wide
Digital Transformation

AUGJUL OCT
SEP
SEP
Foster a Vibrant Civic
Engagement Culture
Build Capacity for Data-
driven Decision Making
SEP
OCT

OCTJUL AUG

JUL AUG
Promote Safety and
Sustainability through
Connectivity
OCT

OCTJUL AUG SEP

JUL AUG SEP
Enhance Accessibility
and Transparency
JAN
JAN
JAN
JAN
JAN
FEB
FEB
FEB
FEB
FEB
MAR
MAR
MAR
MAR
MAR
APR
APR
APR
APR
APR
MAY
MAY
MAY
MAY
MAY
JUN
JUN
JUN
JUN
JUN
----------------------Implementation-------------------- ---------------------Phase II------------------------------ -------------------------------------------------------------Ongoi ng--------------------------------------------------------- -------------------------------------------------------------Ongoi ng-------------------------------------------------------- ----------------------------------------------------------------Ongoing--------------------------------------------------- Imp.
-----------------------------------------------------------Implementation------------------------------------------------ ----------------------------------------------------------Roll Out--------------------------------------------------------- -------------------------------------------------------------Ongoi ng------------------------------------------------------- -----------------------------------------Implementation------------------------------------- -------------------------------------------------------------Ongoi ng-------------------------------------------------------- -------------------------------------------------------------Ongoi ng---------------------------------------------------------- -------------------------------------------------------------Ongoi ng------------------------------------------------------------ -----------------------------------------------------------------RFP -------------------------------------------------------- ---------- Implementation----------
-------------- Redesign----------------
------------------3rd Party Services Validation Testing/Staff training------------------ ------ Pilot-------- -----------Expanded Implementation------------ ---------- Implementation----------
-------------------------------------------------------------Ongoi ng-------------------------------------------------------- -------------------------------------------------------------Ongoi ng------------------------------------------------------------ --------------------------------------------------Implementation------------------------------------------------------- -----------RFP --------------- -----------------------------------------Implementation------------------------------- --Vendor Research-- -------Implementation-------
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FIVE -YEAR ROADMAP

Strategic Digital Transformation Investment Program - 5-Year Roadmap Legend: In progress Approved Evaluating Ongoing Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Core Systems Modernization/Phase II
Digital Information Network
Integrated Library System
Intersection Traffic Detection Upgrade
RFID Replacement
Staff Citywide Printer Replacement
Station Alerting Replacement
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Business Process Automation
Data Governance and Operational Anaytics
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Audio Visual Upgrades
Website Migration
Foster a Vibrant Civic
Engagement Culture
Pursue Community Wide
Digital Transformation
Evaluating - staff is currently studying merit and cost of initiative/project Ongoing - annual process

INITIATIVES
GOAL
GOAL
Build Capacity for Data-
driven Decision Making
GOAL

INITIATIVES

INITIATIVES
FY2029-30
FY2029-30
FY2029-30
Prior Years FY 2026-27
FY 2026-27Prior Years
Prior Years
FY 2027-28 FY2028-29 FY2030-31
FY2030-31
FY2030-31
In progress - has been fully approved and work has started FY 2026-27
Approved - has been fully approved but work has not started FY 2027-28
FY 2027-28
FY2028-29
FY2028-29
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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 H-28
FIVE -YEAR ROADMAP (continued)

Strategic Digital Transformation Investment Program - 5-Year Roadmap Legend: In progress Approved Evaluating Ongoing Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Civic Engagement with Open Data
Early Literacy Interactive Technology
Expansion of Yardi
Interactive Application Navigator
Online Accessibility
Online Permitting/Electronic Reviews (E-Review)
Records Digitization
Website Redesign
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Annual Hardware and Infrastructure Replacement
After Hours Dispatch Solution
Automated License Plate Reader Replacement
Computer Aided Dispatch (CAD)
Cyber Security Program Development
Drone as a First Reponder
Facility Security Master Plan
Live 911
Police In-car Video
Police Records Management Solution
Real Time Crime Center Infrastructure
Ongoing - annual process
FY2029-30 FY2030-31
FY2029-30 FY2030-31GOAL INITIATIVES
Promote Safety and
Sustainability through
Connectivity

GOAL INITIATIVES
Enhance Accessibility
and Transparency
Prior Years
In progress - has been fully approved and work has started Approved - has been fully approved but work has not started Evaluating - staff is currently studying merit and cost of initiative/project FY 2026-27 FY 2027-28 FY2028-29
Prior Years FY 2026-27 FY 2027-28 FY2028-29
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Item #6 Page 567 of 618
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CAPITAL IMPROVEMENT PROGRAM
The Cit
y of Carlsbad Capital Improvement Program reflects the city’s ongoing commitment to maintaining the highest standards of quality facilities for our community today and in the future. It is a planning document, not a commitment for spending. The program outlines the expenditure plan for future capital projects and the corresponding revenues to pay for those expenditures.

Projec
ts that are shown in the CIP are generally defined as any construction, rehabilitation or replacement of major infrastructure such as streets, libraries, parks, fire stations and administrative facilities, water, sewer and drainage facilities, and other facilities that are located on or in the ground.

In most cases, the total construction cost of each of these assets is recorded and tracked as part of the city’s inventory of capital infrastructure assets and other city-owned property.

The CIP bud
get covers a five-year period. Once the City Council adopts the proposed annual CIP budget, projects receive an appropriation that authorizes spending in the amount specified for the adopted fiscal year only. For projects related to the strategic plan or considered a critical need, construction funding is shown as an estimate—the City Council does not authorize an appropriation when the annual CIP budget is adopted. Instead, staff request an appropriation for the construction phase at award of the construction contract. Estimated budget information is shown for a 15-year period to provide the most comprehensive information about known future projects. Spending authority in future years is not granted until adoption of the annual proposed CIP budget associated with each year.

INVESTING IN OUR QUALITY OF LIFE
The Cit
y of Carlsbad’s philosophy is to take a proactive, long-range planning approach to building high quality facilities and infrastructure that support the needs and priorities of the community. Prudent financial planning has ensured ongoing funding to modernize, repair, and replace existing infrastructure projects through numerous asset management programs. Since the city applies a comprehensive asset management approach to infrastructure planning and budgeting , it can avoid more costly unexpected repairs or operational needs and minimize the burden on emergency expenditures.

As the cit
y grew and developed, there was a corresponding increase in the demand for development- related services and new facilities. To ensure that the necessary infrastructure and facilities are built on a schedule that meets or exceeds this demand, the citizens of Carlsbad adopted a Growth Management Plan in 1986. The plan was established to manage development within the city by linking residential, commercial, and industrial development directly to standards for availability of public services and facilities.

Exhibit 22
June 16, 2026
Item #6 Page 568 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 I-2
The Growth Management Plan states
that unless a standard level of facilities is
available to meet new demands resulting
from the city’s growth, development
cannot proceed. Recently, the city
considered certain options pertaining to
growth management, such as imposing a
moratorium on building if infrastructure
falls short of established standards due to
development. However, this was
determined to be impermissible by the
California Housing and Community
Development Department, per Senate Bill
330, Housing Crisis Act of 2019, which became effective on Jan. 1, 2020.

The de
tailed level of planning required by Growth Management has allowed the city’s CIP to anticipate the funding needed for capital improvements in the next 15 years. Facilities such as community centers, parks and fire stations have been constructed and opened to the public under this program.

The C
IP has been designed to specifically address areas where new or expanded facilities will be needed to maintain compliance with the adopted performance standards. With the adoption of the fiscal year 2026-27 CIP, compliance with the Growth Management Plan is continued.

In O
ctober 2022, the City Council approved a five-year strategic plan with policy goals to reflect the most important priorities of the community. The CIP budget includes the priority construction projects identified in the strategic plan.

PROJECT EVALUATION
Devel
opment of the CIP is a team effort involving all operational departments, the City Manager’s Office, the City Council, and the community. Community feedback on infrastructure needs is considered and incorporated as appropriate. The CIP is fully vetted at multiple levels of the city organization by appropriate staff using an inclusive and transparent process and reviewed on a quarterly basis.

Pro
jects were evaluated for the ability to deliver realistic outcomes considering anticipated revenue decreases in some capital funding sources. The city remains focused on matching existing resources with reasonable and achievable project schedules while continuing to work on projects that are already underway. Existing project balances were evaluated to determine whether additional funding was needed or if the existing balances were adequate. Funding recommendations were matched against project timing and balanced against available funding sources.

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As the CIP is implemented throughout the
year, staff continually re-evaluate projects’
scopes, costs and schedules to responsibly
and cost-effectively manage infrastructure
assets at the required levels of service
throughout their lifecycle.

Recommendations for project funding
consider current project status, project
scheduling and sequencing requirements,
project constraints, and current staff
capacity. Project charters are updated to
include project description, location,
summary of need, justification including any
legislative or policy citations, cost estimates,
and project scores.

FISCAL YEAR 2026-27 APPROPRIATIONS
The
CIP is organized by the following project categories:

Th
e five-year CIP budget is based on project phase for Strategic Plan and Critical Need p rojects. This means rather than budgeting for the entire cost of a project well in advance of when the project is scheduled to begin, the City Council will be asked to consider appropriating money phase by phase.

Phases include scoping (which includes feasibility studies and needs assessment), conceptual design (which includes environmental permitting and up to 30% preliminary engineering/design completion), final design (which includes 100% engineering/design completion and final engineer’s estimate) and construction.

Fo
r example, as part of the annual budget process, city staff will request appropriations for a new project, starting with initial scoping. This typically involves early planning work and a feasibility analysis.

Capital
Improvement
Program
Public
health and
safety
City mission,
vision and
organizational
values
Community
values
Environmental
review
Governing
and policy
documents
Funding
availability
City
Council
goals
Strategic Plan
•Priority
projects
Critical Need
• Regulatory
• Health &
safety
Maintenance
• Annual
Allocation
• Enterprise
• Drainage
Closeout
• In service
• Warranty
• Monitoring
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Item #6 Page 570 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 I-4
On
ce plans and specifications for a project have been prepared, a more accurate engineer’s estimate for construction costs can be produced that considers the most up- to-date market conditions. For strategic plan and critical need projects, requesting appropriation of construction funding at the time staff request award of the construction contract allows the city to ensure that the approved project budget will align with the most accurate and timely cost estimates available. The 15 -year forecast will assist the City Council with making informed decisions regarding the city’s ability to fund current and future projects.

In
the fiscal year 2026-27 CIP, there are approximately 195 continuing and new projects planned over the next 5 years. The fiscal year 2026-27 CIP outlines $59.1 million in new appropriations to provide additional funding for the continuation of existing projects as well as funding for 6 new projects.

Projected revenues during the same fiscal year are estimated at $95.7 million.

FY25
-10 0 10 20 30 40
Millions
FY 2026-27 Appropriations by Budget Category
Strategic Plan
Critical Need
Maintenance
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Fiscal year 2026-27 appropriations by project type
Civic Buildings and Facility Maintenance
$9.8 million
This category includes a variety of facilities such as fire stations, libraries and community centers.

Costs include repair, maintenance and replacement of civic buildings and other operational facilities.

Parks
$11.1 million
Projects include improvements and enhancements to existing parks, such as playground resurfacing, picnic areas, pickleball courts and other needs identified by the community and in recently updated parks master plans.

Drainage
$5.5 million
The city’s drainage infrastructure plays an important role in handling storm water runoff flows, as well as maintaining the water quality of the city’s creeks, lagoons and ocean. As the city continues to age, it is increasingly necessary to balance repairing and replacing the existing lines with enhancing the current infrastructure to accommodate future needs.

Sewer
$8.0 million
The city’s sewer, or wastewater, projects include numerous pipeline construction and rehabilitation projects, as well as improvements to the Encina Wastewater Treatment facility. Most new lines are built and paid for with impact fees collected with new development.

Water and Recycled Water
$7.6 million
Future water and recycled water projects include construction of new pipelines, replacement of existing waterlines and reservoir improvements. The Carlsbad Municipal Water District has been producing and delivering recycled water for over 30 years.

Transportation
$17.1 million
People of all ages and abilities want to go places safely and conveniently in Carlsbad, whether they drive, walk, bike, or ride a bus or train. The city continues to invest in modernizing roads, leveraging technology to improve traffic systems, and making timely repairs and rehabilitation of the roadways, bridges, sidewalks and other assets in public rights of way throughout the city.

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Item #6 Page 572 of 618
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NEW CAPITAL IMPROVEMENT PROJECTS
Project Description FY27
Appropriation District
Batiquitos Lift
Station
Improvements
The project includes upgrades to the lift
station to replace aging electrical,
mechanical and structural facilities and to
accommodate future pump flow capacity.
$400,000 4
Chinquapin Lift
Station Force Main
Improvements
The lift station currently has one force main
and requires an additional outfall to fulfill
the operational redundancy requirements of
the engineering standards.

Future FY
2027-28 1
Chinquapin Sewer
Improvements
The project will redirect sewer flow from
Chinquapin Sewer Lift Station to the Vista-
Carlsbad Sewer Interceptor to mitigate
downstream impacts.
$50,000 1
Dove Library
Central Plant
Refurbishment
The project will refurbish the Central Plant at
the Dove Library. $200,000 3
Leo Carrillo Ranch
Stair Replacement
The project will replace the existing three
staircases at Leo Carillo Ranch Historic Park. $500,000 2 Water System
Improvements
The project will upsize various water pipeline
segments to provide capacity in accordance
with CMWD's design standards and Water
Master Plan.
$500,000 Citywide
June 16, 2026
Item #6 Page 573 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 I-7

CAPITAL IMPROVEMENT PROGRAM

REVENUES
Ov
er the next 15 years, revenues for capital projects are estimated at $998.5 million and are segregated into six major funding sources: (1) fees generated by development in the City of Carlsbad, (2) special district fees and taxes from the community facilities districts and bridge and thoroughfare benefit districts, (3) water and wastewater replacement funds, (4) infrastructure replacement funds other than wastewater and water, (5) general capital construction funds, and (6) other sources, including grants, sales taxes and contributions from other agencies.

Appr
oximately 26% of all capital revenue is received as a result of development, including developer fees and financing districts in the chart above, and is dependent upon assumptions made about the city's annual growth in dwelling units and commercial and industrial squa re feet. These revenues include Public Facilities Fees, Traffic Impact Fees, Park-In-Lieu Fees, Planned Local Drainage Fees, water connection fees, sewer connection charges, and community facilities districts and bridge and thoroughfare benefit districts fees.

Wa
ter and wastewater replacement revenues generated by user fees equal approximately 25 % of total revenues and are used to pay for replacement of existing water and sewer facilities.

Infrastructure Replacement and General Capital Construction revenues, equal to 17 %, are transfers from the city’s General Fund, which are being set aside to pay for replacement of major capital facilities other than wastewater and water facilities and the construction of various municipal projects. The remaining 23% consists of revenues from other agencies and include federal and state grants, the county sales tax program Transnet, gas taxes, and contributions or reimbursements from cities, developers, and other agencies.

Financing Districts,

8.8%
General Capital
Construction
transfers, 8.9%
Infrastructure
Replacement
transfers, 8.5%
Other agencies,

23.1%Developer fees,

25.7%
Utility Replacement
transfers, 25.1%
Capital Improvement Program
Projected Revenues FY 2026-27 to FY 2040-41
$998.5 million
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FUTURE GROWTH AND DEVELOPMENT
As
shown on the graph on the previous page, there are a variety of revenues that are used to fund the capital projects. In order to estimate revenues to be received from development, several assumptions about the rate and type of future development are made. These assumptions can change from year to year and tend to correlate with the current economic climate.

Ev
ery year, city staff evaluates all existing and future private development projects and compares this information to the capacity of the city using the most current adopted general plans. Information about existing development activity combined with estimates of how remaining net developable land might develop is then summarized to prepare future projections about when and where residential and non-residential development may occur. The following table shows the number of residential units and non-residential square feet of development that was used in calculating estimated revenues for fiscal year 2026-27 and subsequent years to build out.

Projected Future Development
Financial forecasting schedules are prepared to ensure that funding will be sufficient and available for construction of capital projects as planned in the CIP. In addition to evaluating whether or not capital funds are sufficient, significant operating cost impacts and availability of staff resources are also considered in evaluating the timing of projects. Where funding discrepancies occur, alternative financing methods and project timing are evaluated, and recommendations are made to resolve the discrepancies.

Conservatively, about 7,974 residential units are anticipated for future development, and it is currently estimated that the city is more than 90% built out. Residential development for fiscal year 2026-27 is projected at 1,093 units, and, over the next five years, should average 478 units per year.

The amount of non-residential development is projected at about 896,000 square feet over the next five years.

Fiscal Year Residential Units
Non-Residential Square
Feet
2026-27 1,093 263,133
2027-28 514 19,605
2028-29 136 497,100
2029-30 412 67,139
2031-31 236 49,146
2031-36 2,528 624,927
2037-build out 3,055 1,201,621
Totals 7,974 2,722,671
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Projects include several multi-family residential developments, commercial industrial, office and other mixed-use projects. Development estimates provide data for estimating future fee revenues, which are calculated by multiplying each applicable development fee by the estimated number of dwelling units and/or square feet of construction expected during each year.

FUTURE PROJECTS
Lo
ng-range planning and responsible asset management play key roles in the development of future capital projects. Using data from various infrastructure master plans, ongoing asset condition assessments, technical modelling, field inspections as well as community feedback, the information provided for future years reflects the most comprehensive snapshot of known or anticipated future projects as well as associated estimated costs. Future costs for projects forecast for the fiscal year 2031-32 to fiscal year 2040-41 period are estimated at approximately $858 million.

Civic
16%
Drainage
11%
Parks
8%
Recycled Water
2%
Sewer
14%
Transportation
36%
Water
13%
Future Project Costs by Type
FY 2031-32 to FY 2040-41
$858 million
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CALCULATION OF FUTURE FEES
The
revenue projections in the CIP reflect the growth assumptions identified in the previous section.

The following information delineates how those assumptions were applied to estimate future development revenues. The mix of future multi-family and single-family residential units is assumed to be 90% and 10%, respectively, and reflects the anticipated mix of residential development for each Local Facilities Management Zone.

To
calculate estimated revenues for Traffic Impact Fees, the number of average daily trips was computed for each type of development use. An attached multi-family residential dwelling unit is assigned eight trips and a detached single-family unit is assigned 10 trips per day. The trips-per-day value for commercial and industrial buildings are 40 and eight trips per 1,000 square feet of development, respectively, although the actual volume of trips generated by commercial and industrial buildings can vary widely depending on the ultimate land use.

CFD N
o. 1 is a citywide district established to finance various civic facilities required under the city’s Growth Management Plan. Park-in-Lieu Fees are collected for the purchase and development of parkland within each quadrant of the city, and the fees are based on the acquisition cost of parkland.

Projects in the CIP funded with Park-in-Lieu Fees include future park site acquisition, development and restoration.

UNFUNDED PROJECTS
The
CIP includes several projects for which there is no identifiable funding source for future construction and, in some cases, where only partial funding has been identified. The city will investigate obtaining possible external funding, such as federal and state grants, loans, or other financing sources. Once funding is identified for these projects, the project costs will be reviewed and updated to reflect actual cost estimates. Projects on this list are part of the City Council’s Five -Year Strategic Plan or were identified by Council direction. One project is partially funded by the Traffic Impact Fee program. The program was planned to generate enough revenue to pay 20% of the total costs of these projects, leaving the remaining 80% unfunded.

Cannon Lake Park $2,500,000
Chestnut Complete Street I-5 to Railroad Project Study $2,750,000 College Boulevard Extension $70,000,000
Fire Station 1 Replacement $28,000,000
Fire Station 7 $28,000,000
Orion Complex Energy Storage $11,000,000
South Carlsbad Boulevard Realignment (Partial Funding/TIF) $5,500,000 June 16, 2026
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PROJECTED FUND BALANCES FOR
FISCAL YEAR 2025- 26
July 1, 2025 Projected June 30, 2026
Unreserved Projected Projected Debt Service Projected
Fund Balance Revenues Expenditures Loans & Other Balance BTD#2 - Poinsettia Lane/Aviara Pkwy 1,507,580$ 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
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PROJECTED FUND BALANCES FOR
FISCAL YEAR 2026- 27
July 1, 2026 June 30, 2026 Jul y 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
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REVENUE PROJECTIONS SCHEDULE
2023-24 2024-25 2025-26 2026-27
Actua
l 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$ No
te: Revenues include transfers and fair market value adjustments.

June 16, 2026
Item #6 Page 580 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 I-14

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 581 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 I-15

PROJECT ESTIMATED OPERATIONAL

REQUIREMENTS
The
projects listed in the table below represent projects that have been determined will have or may have operating budget impacts within the next five fiscal years. Estimated impacts to operating budget are based on industry standards. Projects that have an estimated zero -dollar impact on the city’s operating budget are not listed below. As the fiscal years identified in the table become the next budgeting year the associated appropriate department may make a request for additional operating budget.

Project Department Operating
fiscal year
Estimated annual
cost
Avenida Encinas Coastal Rail Trail –
Segment 3 Transportation 2027-28 $16,000
Barrio Street Lighting Transportation 2026-27 $44,000
Barrio Traffic Calming Transportation 2026-27 $5,000
ECR Widening – Arenal to La Costa Transportation 2028-29 $1,800 ECR Widening – Poinsettia to
Camino Vida Roble Transportation 2026-27 $1,800
Orion Center Facilities 2028-29 $800,000
Trash Amendment Compliance
Program – State Street Transportation 2028-29 $5,000
Trash Amendment Compliance
Program – Agua Hedionda Transportation 2029-30 $5,000
Veterans Memorial Park Parks &
Recreation 2027-28 $890,000
Village Decorative Lighting – State
Street, Madison, Roosevelt, and
Washington
Transportation 2027-28 $22,000
June 16, 2026
Item #6 Page 582 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 I-16
June 16, 2026
Item #6 Page 583 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26

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 I-17
June 16, 2026
Item #6 Page 584 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26

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$ I-18
June 16, 2026
Item #6 Page 585 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26

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 I-19
June 16, 2026
Item #6 Page 586 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26

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
I-20
June 16, 2026
Item #6 Page 587 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26

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 I-21
June 16, 2026
Item #6 Page 588 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26

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 I-22
June 16, 2026
Item #6 Page 589 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26

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
I-23
June 16, 2026
Item #6 Page 590 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26

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 I-24
June 16, 2026
Item #6 Page 591 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26

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
I-25
June 16, 2026
Item #6 Page 592 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26

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 I-26
June 16, 2026
Item #6 Page 593 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26

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.

I-27
June 16, 2026
Item #6 Page 594 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 I-28
June 16, 2026
Item #6 Page 595 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 I-29
CAPITAL IMPROVEMENT PROGRAM 15- YEAR FORECAST
PRIOR YEAR 1 YEAR 2 YE AR 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 63,929,399 69,975,489 47,831,065 25,472,433 27,713,156 48,726,835

REVENUES
Developer Special Taxes 6,156,090 2,886,576 2,672,367 2,350,723 36,623,679 36,901,467 Total Revenues N/A 6,156,090 2,886,576 2,672,367 2,350,723 36,623,679 36,901,467

CAPITAL PROJECTS
CFD#1 Administration - 110,000 110,000 110,000 110,000 110,000 - City Hall Complex 1,028,105 - - - - 15,500,000 100,000,000 Orion Center 9,657,729 - 24,921,000 24,921,000 - - - Veteran's Memorial Park (All Quadrants) 49,168,157 - - - - - - Total Project Expenditures 59,853,991 110,000 25,031,000 25,031,000 110,000 15,610,000 100,000,000 ENDING FUND BALANCE N/A 69,975,489 47, 831,065 25,472,433 27,713,156 48,726,835 (14,371,698) PRIOR YEAR 1 YEAR 2 YE AR 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 8,613,290 763,445 (470,599) 616,034 1,669,953 (125,961)

REVENUES
Gas Tax and Prop 42 Funds 3,419,140 3,333,956 3,334,633 3,328,919 3,314,086 33,140,865 Total Revenues N/A 3,419,140 3,333,956 3,334,633 3,328,919 3,314,086 33,140,865

CAPITAL PROJECTS
ADA Parking Space Modifications - 300,000 - - - - - Barrio Street Lighting 150,000 - - - - - -
Barrio Street Calming 159,001 - - - - - -
Camino De Los Coches and La Costa Avenue Intersection Control 350,000 - - - - - - Cannon Road / Sage Creek Road Rehab 155,003 - - - - - - Carlsbad Blvd And Tamarack Avenue Pedestrian Improvements 1,771,001 2,600,000 - - - - - Carlsbad Boulevard Emergency Repair 841,002 - - - - - - Carlsbad Blvd Pedestrian Improvement Project 1,055,887 (298,232) - - - - - Carlsbad Village Drive Widening - Pontiac Drive to Victoria Avenue - - - 700,000 - 2,500,000 - Citywide Drainage Improvement Program 6,090,594 - - - - - - Citywide Street Lighting Program 150,000 - - - - - - Citywide Thermoplastic Pavement Markings 350,000 - 150,000 150,000 150,000 150,000 1,500,000 Concrete Repair/Replacement Program 3,643,001 520,000 548,000 578,000 605,000 605,000 5,845,000 El Camino Real Widening - Arenal Road to La Costa Avenue 1,450,000 3,000,000 - - - - - El Camino Real Widening - Sunny Creek to Jackspar 366,051 350,000 - - - - - Guardrail Replacement And Improvement Program 150,000 - - - - - 200,000 Kelly Drive and Park Drive Complete Street Improvements 272 - - - - - - La Costa Avenue Traffic Improvements 12,458 - - - - - 109,000 Laguna Drive Storm Drain 256,000 1,000,000 - - - - 1,494,000 Marca Place Drainage Improvements 65,000 - - - - - - Park Drive Drainage And Street Improvements 3,965,003 200,000 - - - - - Paseo Del Norte Pedestrian and Bike Improvements 65,490 700,000 - - - - - Pavement Management Program 8,125,849 2,132,000 - - - 1,000,000 - Retroreflectivity Sign Replacement Program 1,220,000 - 120,000 120,000 120,000 120,000 1,200,000 Roadway Slope Stabilization 1,279,998 - - - - - - Schools Traffic Safety Program 250,000 - - - - - - Sidewalk/Street Construction Program 2,338,000 150,000 3,250,000 200,000 900,000 235,000 3,670,000 Sustainable Mobility Plan Implementation Program 710,567 - - - - - - Traffic Improvement Program 2,388,003 400,000 400,000 400,000 400,000 400,000 4,000,000 Traffic Monitoring Program 480,000 100,000 100,000 100,000 100,000 100,000 1,000,000 Traffic Signal - Maverick Way & Camino De Los Coches 490,000 249,000 - - - - - Traffic Signal Right Turn Overlaps 150,000 (133,783) - - - - - Total Project Expenditures 38,478,179 11,268,985 4,568,000 2,248,000 2,275,000 5,110,000 19,018,000 ENDING FUND BALANCE N/A 763,445 (470, 599) 616,034 1,669,953 (125,961) 13,996,904 (ROAD MAINTENANCE AND REHABILITATION ACCOUNT) PRIOR YEAR 1 YE AR 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 724,371 597,486 850,061 1,083,146 1,309,294 1,546,802

REVENUES
Gas Tax (RMRA) Revenues 3,265,115 3,418,575 3,586,085 3,776,148 3,972,508 49,602,131 Total Revenues N/A 3,265,115 3,418,575 3,586,085 3,776,148 3,972,508 49,602,131

CAPITAL PROJECTS
Concrete Repair/Replacement Program 3,166,999 395,000 413,000 435,000 456,000 456,000 4,410,000 Pavement Management Program 17,686,001 2,997,000 2,753,000 2,918,000 3,094,000 3,279,000 33,771,000 Total Project Expenditures 20,853,000 3,392,000 3,166,000 3,353,000 3,550,000 3,735,000 38,181,000 ENDING FUND BALANCE N/A 597,486 850,061 1,083,146 1,309,294 1,546,802 12,967,933 COMMUNITY FACILITIES DISTRICT NO. 1 (CFD 1)

GAS TAX FUND

GAS TAX
June 16, 2026
Item #6 Page 596 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 I-30
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 34,122,753 32,778,948 26,140,630 31,379,536 32,172,891 37,587,796

REVENUES
Transfer from General Fund 4,990,519 5,171,682 5,348,906 5,526,355 5,704,905 62,248,450 Total Revenues N/A 4,990,519 5,171,682 5,348,906 5,526,355 5,704,905 62,248,450

CAPITAL PROJECTS
ADA Beach Access - Pine to Tamarack 1,143,801 - 10,000,000 - - - - Alga Norte Park Modifications 1,424,000 - - - - - - Alga Norte Settlement Agreement 1,983,192 - - - - - - Assessment District 97-1 Maintenance 420,001 - - - - - - Avenida Encinas Coastal Rail Trail and Pedestrian Improvements - 3,000,000 - - - - - Barrio Parking Improvements Project 285,700 340,000 200,000 - - - - Barrio Street Lighting 474,299 (169,172) - - - - -
Barrio Traffic Calming 414,998 - - - - - -
Beach Access Repair and Upgrades - Pine Avenue to Tamarack 6,899,001 - - - - - - Buena Vista Creek Concrete Channel Maintenance at El Camino Real 1,249,999 (784,166) - - - - - Calavera Hills Community Park Gateway Improvements 1,407,853 (18,033) - - - - - Cannon Park Restroom 45,765 - - - - - -
Carlsbad Village Drive and Grand Ave. Pedestrian & Crossing Improvements - - - - 920,000 - - Carlsbad Village Drive Reconfiguration 350,000 - 1,500,000 - - - - Chestnut Underpass Public Art Project 400,000 - - - - - - City Facility Accessibility Upgrades 500,000 - - - - - - City Fire Stations Wash Water BMPs 279,999 - - - - - - Citywide Facility Arc Flash and Thermal Imaging Safety Program 100,000 60,000 60,000 60,000 60,000 - - El Camino Real Widening - Poinsettia Lane to Camino Vida Roble - - - - - - - Faraday Avenue Improvements 1,575,000 - - - - - - Fire Station No. 7 100,000 - - - - - -
Fleet Fuel Island Upgrade 400,000 - - - - - -
Fleet Maintenance Refurbishment 896,100 1,700,000 - - - - - Grand Avenue Promenade 300,000 - - - - - 10,500,000 La Costa Avenue Box Culvert Cleaning 275,000 - - - - - - Lake Calavera Outlet Improvements 1,436,002 (174,154) - - - - - Lake Calavera Reservoir Maintenance 755,006 38,000 50,000 50,000 190,000 35,000 500,000 Monroe Street Pool Replacement 10,619,613 - - - - - - New Village Arts Tenant Improvements 613,000 - - - - - - Ocean Street Reconfiguration Concepts Study - - - - 400,000 - - Open Space and Trail Acquisition (Prop C) 4,015,000 - - - - - - Orion Center 99,000 - - - - - -
Orion Complex Energy Storage - 250,000 - - - - -
Park Drive Street and Drainage Improvement 1,117,439 - - - - - - Pavement Management Program - - - - - - -
Police and Fire Headquarters Renovation 14,511,887 - - - - - - Police and Fire HQ Parking Lot and Exterior Improvements 440,002 980,000 - - - - - Rancho Santa Fe Trail Slope Improvements 350,000 - - - - - - Roadway Improvements - Coastal Area Analysis and Implementation 200,000 - - - - - - Safety Training Center Emergency Backup Generator - 1,000,000 - - - - - Safety Training Center Settlement 1,156,994 - - - - - - South Shore Agua Hedionda Lagoon Trail 789,941 - - - - - - Street Lighting Replacement Program 319,270 - - - - - - Temporary Fire Station No. 7 900,000 - - - - - -
Terramar Area Coastal Improvements 1,000,000 (998,151) - - - - - Traffic Improvement Program 1,800,001 - - - - - - Traffic Signal Cabinet Upgrades 180,001 - - - - - - Trieste Slope Repair Project 3,770,599 - - - - - - Tyler Street Sidewalk Improvement Project 970,000 - - - - - - Utility Undergrounding Program Study - - - - - - 100,000 Village Intelligent Parking Implementation - - - - 63,000 255,000 - Village Lighting - Carlsbad Village Dr. from Harding St. to Ocean St. 145 - - - - - 600,000 Village Lighting - Gateway Lighting - - - - - - 950,000 Village Lighting - Hospitality District - - - - 1,050,000 - - Village Lighting - Pedestrian Lampposts Oak Avenue - - - - 600,000 - - Village Lighting - Pedestrian Lighting at Village Outskirts - - - - 950,000 - - Village Lighting - State Street, Madison, Roosevelt, and Washington 1,103,854 1,110,000 - - - - - Village Lighting - Train Station Area - - - - 500,000 - - Total Project Expenditures 67,072,463 6,334,324 11,810,000 110,000 4,733,000 290,000 12,650,000 N/A 32,778,948 26,140,630 31,379,536 32,172,891 37,587,796 87,186,246

GENERAL CAPITAL CONSTRUCTION (GCC)
June 16, 2026
Item #6 Page 597 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 I-31
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 (9,860,908) - - - - -

REVENUES
Grant Revenue 9,860,908 - - - - -
Total Revenues N/A 9,860,908 - - - - -

CAPITAL PROJECTS
Avenida Encinas Coastal Rail Trail and Pedestrian Improvements - - - - - - - Barrio Street Lighting 2,500,000 - - - - - - Carlsbad Boulevard Pedestrian Improvement Project - - - - - - - El Camino Real Widening - Poinsettia Lane to Camino Vida Roble 1,440,001 - - - - - - Schools Traffic Safety Program 850,000 - - - - - - Veteran's Memorial Park (All Quadrants) 3,000,000 - - - - - - Village and Barrio Traffic Circles 2,500,000 - - - - - - Total Project Expenditures 10,290,000 - - - - - -

ENDING FUND BALANCE N/A - - - - - -
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 (5,534,510) 0 0 0 0 0

REVENUES
Grant Revenue 5,534,510 - - - - -
Total Revenues N/A 5,534,510 - - - - -

CAPITAL PROJECTS
Avenida Encinas Coastal Rail Trail and Pedestrian Improvements 1,776,000 - - - - - - Carlsbad Boulevard Pedestrian Improvement Project 591,600 - - - - - - Paseo Del Norte Pedestrian and Bike Improvements 534,510 - - - - - - Veteran's Memorial Park (All Quadrants) 5,000,000 - - - - - - Total Project Expenditures 7,902,110 - - - - - - ENDING FUND BALANCE N/A 0 0 0 0 0 0

GRANTS - STATE

GRANTS - FEDERAL
June 16, 2026
Item #6 Page 598 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 I-32
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 65,518,777 40,060,696 13,555,378 612,284 (9,452,361) (16,350,456)

REVENUES
Transfer from General Fund 500,000 5,171,682 5,348,906 5,526,355 5,704,905 62,248,450 Total Revenues N/A 500,000 5,171,682 5,348,906 5,526,355 5,704,905 62,248,450

CAPITAL PROJECTS
Agua Hedionda Creek Maintenance 973,003 (588,979) - - - - - Alga Norte Park Modifications 1,487,464 - - - - - - Beach Access Repair and Upgrades - Pine Avenue to Tamarack 6,612,751 - - - - - - Bridge Preventative Maintenance Program 5,020,844 600,000 1,418,000 623,000 1,535,000 773,000 14,164,000 Buena Vista Creek Concrete Channel Maintenance at El Camino Real 1,768,001 - 4,600,000 830,000 - - - Calavera Hills Community Center Refurbishment 1,985,000 (543,085) - - - - - City Facility Safety and Parking Lot Lighting Assessment 1,910,001 650,000 - - - - - Citywide Community Parks' Playgrounds Replacements/Upgrades 50,000 1,375,000 3,250,000 2,250,000 - - - Citywide Drainage Improvement Program 12,281,502 3,220,000 700,000 3,938,000 830,000 4,245,000 45,290,000 Citywide Facilities Nonfunctional Turf Removal and Replacement 350,000 995,000 - - - - - Coordinated Traffic Signal Program 800,000 - - - - - - DMP Facility BFB-U (El Camino Real) 1,000,003 - 8,536,000 70,000 80,000 80,000 800,000 Dove Library Central Plant Refurbishment - 200,000 1,400,000 - - - - Downtown Tile Replacement 250,000 - - - - - -
Faraday Center Refurbishment 3,154,381 - - - - - - Fire Station 5 Renovation 2,450,001 5,000,000 - - - - - Fleet Fuel Island Upgrade 5,262,264 - - - - - - Fleet Maintenance Refurbishment 2,574,004 3,000,000 - - - - - Flower Fields Overlook Sidewalk Replacement 250,000 - - - - - - Harding Center Refurbishment 817,001 40,000 168,000 - - - - Headwall Replacement Program 1,155,002 415,000 485,000 555,000 625,000 635,000 8,250,000 Hosp Grove Park Improvements 1,562,000 - - - - - - Hosp Grove Park Improvements 120,000 - - - - - -
Kelly Drive Channel Repair 3,641,006 - - 1,500,000 - - - Las Palmas Roof Replacement 630,000 (85,561) - - - - - Library Learning Center Renovation 100,000 1,660,000 400,000 - - - - Magee Park Building Restoration 250,000 550,000 - - - - - Miscellaneous City Building Improvements 2,315,000 351,000 150,000 150,000 150,000 150,000 1,500,000 Monroe Street Pool Replacement 6,848,143 - - - - - - Parking Lot Maintenance Program 2,430,000 1,600,000 175,000 850,000 175,000 1,175,000 4,347,000 Parks Maintenance Program 3,954,056 1,115,000 2,073,000 1,779,000 3,638,000 669,000 11,192,000 Pavement Management Program 2,000,000 (200,000) 2,472,000 2,662,000 2,928,000 3,104,000 35,519,000 Police and Fire Headquarters Central Plant Repair Project 609,330 - - - - - - Police and Fire Headquarters Renovation 13,221,990 - - - - - - Schulman Auditorium and Cannon Art Gallery 2,820,001 (118,531) - - - - - Senior Center Repairs and Roof Replacement 3,158,001 - - - - - - Senior Center Security Fencing 300,000 - - - - - -
Stagecoach Park Synthetic Turf Replacement 2,696,001 (991,763) - - - - - Storm Drain Condition Assessment 1,440,001 - 350,000 400,000 455,000 500,000 5,375,000 Storm Drain System Rehab and Repair Program 10,512,362 800,000 5,000,000 610,000 4,735,000 755,000 23,200,000 Synthetic Turf Replacement - Alga Norte 75,000 3,285,000 - - - - - Synthetic Turf Replacement - Aviara 68,500 2,280,000 - - - - - Synthetic Turf Replacement - Pine 2,320,000 - - - - - - Synthetic Turf Replacement - Poinsettia 2,199,999 - - - - - - Trash Amendment Compliance Program 630,001 1,350,000 500,000 2,075,000 440,000 517,000 - Total Project Expenditures 114,052,614 25,958,081 31,677,000 18,292,000 15,591,000 12,603,000 149,637,000 ENDING FUND BALANCE N/A 40,060,696 13,555,378 612,284 (9,452,361) (16, 350,456) (103,739,006) 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 2,262,500 122,500 122,500 122,500 122,500 122,500

REVENUES
Other Financing Sources - - - - - -
Total Revenues N/A - - - - - -

CAPITAL PROJECTS
College Boulevard Extension 429,863 2,140,000 - - - - - Total Project Expenditures 429,863 2,140,000 - - - - - ENDING FUND BALANCE N/A 122,500 122,500 122,500 122,500 122,500 122,500

INFRASTRUCTURE MAINTENANCE & REPLACEMENT
OTHER
June 16, 2026
Item #6 Page 599 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 I-33

PARKING IN LIEU
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 360,000 - - - - -

REVENUES
Other Financing Sources - - - - - -
Total Revenues N/A - - - - - -

CAPITAL PROJECTS
Roadway Improvements - Coastal Area Analysis and Implementation 47,005 360,000 - - - - - Total Project Expenditures 47,005 360,000 - - - - -

ENDING FUND BALANCE N/A - - - - - -
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 (1) N/A 3,235,903 3,235,903 6,802,543 6,802,543 7,288,903 7,775,263

REVENUES
Developer Fees - 3,566,640 - 486,360 486,360 10,916,080 Total Revenues N/A - 3,566,640 - 486,360 486,360 10,916,080

CAPITAL PROJECTS
Loan - Park-in-Lieu NE to Public Facility Fee Fund for Park Site Acquisition - - - - - - 4,550,000 Robertson Ranch Park Development 2,107,001 - - - - - - Total Project Expenditures 2,107,001 - - - - - 4,550,000 ENDING FUND BALANCE N/A 3,235,903 6,802,543 6,802,543 7,288,903 7,775,263 14,141,343 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 1,646,420 6,642,372 7,097,412 7,752,452 7,407,492 8,012,532

REVENUES
Developer Fees 7,770,952 1,405,040 1,405,040 1,405,040 1,405,040 38,800,720 Total Revenues N/A 7,770,952 1,405,040 1,405,040 1,405,040 1,405,040 38,800,720

CAPITAL PROJECTS
City Facility Safety and Parking Lot Lighting Assessment 200,000 150,000 - - - - - Hosp Grove Park Improvements - 2,625,000 - - - - - Monroe Street Pool Replacement 2,697,225 - - - - - - Northwest Quadrant Older Parks Rehabilitation and Improvement 350,000 - 950,000 750,000 1,750,000 800,000 - Total Project Expenditures 3,247,225 2,775,000 950,000 750,000 1,750,000 800,000 - ENDING FUND BALANCE N/A 6,642,372 7,097,412 7,752,452 7,407,492 8,012,532 46,813,252 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 1,454,006 4,445,390 3,545,022 3,609,870 3,609,870 3,609,870

REVENUES
Developer Fees 4,031,384 583,632 64,848 - - 1,264,536 Total Revenues N/A 4,031,384 583,632 64,848 - - 1,264,536

CAPITAL PROJECTS
Leo Carrillo Ranch Park Phase 3B 350,000 540,000 1,484,000 - - - - Leo Carrillo Ranch Stair Replacement - 500,000 - - - - - Stagecoach Community Park Community Gardens 645,000 - - - - - - Total Project Expenditures 995,000 1,040,000 1,484,000 - - - - ENDING FUND BALANCE N/A 4,445,390 3,545,022 3,609,870 3,609,870 3,609,870 4,874,406

PARK-IN-LIEU NE

PARK-IN-LIEU NW

PARK-IN-LIEU SE
June 16, 2026
Item #6 Page 600 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 I-34
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 1,592,208 1,592,208 1,592, 208 1,592,208 3,505,224 3,505,224

REVENUES
Developer Fees/Loans - - - 1,913,016 - 1,264,536 Total Revenues N/A - - - 1,913,016 - 1,264,536

CAPITAL PROJECTS
Aviara Reimbursement Agreement 238,001 - - - - - - Loan Repay - Park-in-Lieu SW to Public Facility Fee Fund - - - - - - 1,100,000 Total Project Expenditures 238,001 - - - - - 1,100,000 N/A 1,592,208 1,592,208 1,592,208 3,505,224 3,505,224 3,669,760 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 4,122,718 4,220,993 4,220, 993 4,220,993 4,220,993 4,220,993

REVENUES
Developer Fees 98,276 - - - - 522,842
Total Revenues N/A 98,276 - - - - 522,842

CAPITAL PROJECTS
Business Park Recreational Facility (Zone 5 Park) 1,500,000 - - - - - 16,500,000 Total Project Expenditures 1,500,000 - - - - - 16,500,000 ENDING FUND BALANCE N/A 4,220,993 4,220,993 4,220,993 4,220,993 4,220,993 (11,756,165) 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 1,296,154 1,296,154 1,296, 154 1,296,154 1,296,154 1,296,154

REVENUES
Developer Fees - - - - - 60,878
Total Revenues N/A - - - - - 60,878

CAPITAL PROJECTS
DMP Facility AAA (Jefferson Street) - - - - - - 290,000 DMP Facility AAAA (Madison Street) - - - - - - 417,000 DMP Facility AC (Highland Drive Drainage Project) - - - - - - 922,000 DMP Facility AFA (Hidden Valley Drainage Restoration and Enhancement Project) - - - - - - 92,000 DMP Facility AFB (Calavera Hills Drainage Restoration and Enhancement Project) - - - - - - 164,000 Drainage Master Plan Update 216,511 - - - - - -
Total Project Expenditures 216,511 - - - - - 1,885,000 ENDING FUND BALANCE N/A 1,296,154 1,296,154 1,296,154 1,296,154 1,296,154 (527,968) 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 1,855,169 2,207,547 2,701, 810 2,900,995 3,162,035 3,407,648

REVENUES
Developer Fees 352,378 494,263 199,185 261,040 245,613 4,393,164 Total Revenues N/A 352,378 494,263 199,185 261,040 245,613 4,393,164

CAPITAL PROJECTS
Agua Hedionda Creek Maintenance 3,545,245 - - - - - - College Boulevard Extension - - - - - - -
DMP Facility BB 1 and 2 (Washington Street) - - - - - - 1,087,000 DMP Facility BCB (Magnolia Avenue) - - - - - - 469,000 DMP Facility BFB-L and BFB-1 (Tamarack and El Camino Real Plda "B") - - - - - - 905,000 DMP Facility BFB-U (El Camino Real) 153,490 - - - - - - DMP Facility BL-L (College Boulevard Bridge Reimbursement Plda "B") - - - - - - 1,817,000 DMP Facility BL-U (College Boulevard) - - - - - - 385,000 DMP Facility BM (Cantarini/College Boulevard Box Culvert) - - - - - - 205,000 DMP Facility BQ (Sunny Creek) - - - - - - 132,000 DMP Facility BR (Cantarini/College Boulevard Pipe Drainage) - - - - - - 181,000 Drainage Master Plan Update 583,000 - - - - - -
Total Project Expenditures 4,281,735 - - - - - 5,181,000 ENDING FUND BALANCE N/A 2,207,547 2,701,810 2,900,995 3,162,035 3,407,648 2,619,812

PARK-IN-LIEU SW
PARK FEE ZONES 5,13,16,17,18

PLANNED LOCAL DRAINAGE AREA A FEES (PLD A)

PLANNED LOCAL DRAINAGE AREA B FEES (PLD B)
June 16, 2026
Item #6 Page 601 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 I-35
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 1,722,216 2,325,303 2,331,400 2,339,386 2,483,660 2,483,660

REVENUES
Developer Fees 603,087 6,097 7,986 144,274 - 1,842,420 Total Revenues N/A 603,087 6,097 7,986 144,274 - 1,842,420

CAPITAL PROJECTS
DMP Facility C2 (Paseo Del Norte) - - - - - - 728,000 DMP Facility CA (Avenida Encinas) - - - - - - 530,000 Drainage Master Plan Update 246,888 - - - - - -
Total Project Expenditures 246,888 - - - - - 1,258,000 ENDING FUND BALANCE N/A 2,325,303 2,331,400 2,339, 386 2,483,660 2,483,660 3,068,080 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 830,375 1,127,312 1,169,731 1,712,809 1,767,668 1,815,585

REVENUES
Developer Fees 296,937 42,419 543,079 54,859 47,917 1,440,659 Total Revenues N/A 296,937 42,419 543,079 54,859 47,917 1,440,659

CAPITAL PROJECTS
DMP Facility DBA (Poinsettia Village) - - - - - - 168,000 DMP Facility DBB (Avenida Encinas) - - - - - - 430,000 DMP Facility DFA (Batiquitos Lagoon Stormwater Treatment) - - - - - - 257,000 DMP Facility DH (Altive Place Canyon Restoration) - - - - - - 233,000 Drainage Master Plan Update 234,600 - - - - - -
Total Project Expenditures 234,600 - - - - - 1,088,000 ENDING FUND BALANCE N/A 1,127,312 1,169,731 1,712, 809 1,767,668 1,815,585 2,168,245 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 35,805,001 39,581,977 41,385,588 40,524,362 42,736,112 44,541,343

REVENUES
Developer Fees 8,013,762 3,553,610 2,288,774 3,011,750 1,805,231 48,505,062 Total Revenues N/A 8,013,762 3,553,610 2,288,774 3,011,750 1,805,231 48,505,062

CAPITAL PROJECTS
Kelly Drive and Park Drive Complete Street Improvements 932,728 - - - - - - Northwest Quadrant Older Parks Rehabilitation and Improvement - 950,000 750,000 1,750,000 800,000 - - Pickleball Courts 355,000 3,305,455 - - - - - Poinsettia Community Park - Phase 4 - Dog Park 2,838,138 (18,670) - - - - - Poinsettia Community Park - Phase 4 - Dog Park - - - - - - - Robertson Ranch Park Development - - - - - - 32,500,000 South Carlsbad Coastline - - - - - - -
State Street Parking Lot Electric Vehicle Charging Stations 637,002 - - - - - - Temporary Fire Station 7 1,121,999 - - - - - - Terramar Area Coastal Improvements 2,450,000 - - - - - - Valley and Magnolia Complete Streets 251,000 - 1,000,000 - - - - Village H South Off Leash Dog Area and Trail Segment 5B 682,500 - - 1,400,000 - - - Total Project Expenditures 9,268,366 4,236,785 1,750,000 3,150,000 800,000 - 32,500,000 ENDING FUND BALANCE N/A 39,581,977 41,385,588 40,524, 362 42,736,112 44,541,343 60,546,405

PLANNED LOCAL DRAINAGE AREA C FEES (PLD C)

PLANNED LOCAL DRAINAGE AREA D FEES (PLD D)

PUBLIC FACILITY FEE FUND (PFF)
June 16, 2026
Item #6 Page 602 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 I-36
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 431,387 4,327,247 (65,155) (17,513,457) (22,894,310) (26,792,162)

REVENUES
Developer Fees and Miscellaneous 1,691,175 790,498 523,549 579,147 339,398 7,695,936 Other Agency Contributions (City of Vista) - 191,100 2,308,150 - 9,750 - Total Revenues N/A 1,691,175 981,598 2,831,699 579,147 349,148 7,695,936

CAPITAL PROJECTS
Avenida Encinas and Cannon Road Sewer Replacement - 140,000 1,500,000 - - - - Buena Interceptor Sewer Improvements 550,001 - - - - - - Cannon Lift Station Redundant Force Main 200,000 - 750,000 5,500,000 - - - Chinquapin Sewer Improvements - 50,000 960,000 - - - - El Fuerte Lift Station Improvements 425,000 - 212,000 764,000 - - - El Fuerte Lift Station Redundant Force Main - - - 1,060,000 4,240,000 - - Faraday and El Camino Real Sewer Replacement - Orion to Palomar Airport Road 3,434,401 (3,237,000) 983,000 3,399,000 - - - Harding Street Sewer Improvements 1,200,000 500,000 - - - - - Home Plant Lift Station Improvements 400,000 - 300,000 5,000,000 - - - Jefferson Street Sewer Replacement 300,000 148,000 - - - - - Las Palmas Trunk Sewer 301,000 - 300,000 1,500,000 1,500,000 - - Loan Repay - Sewer Conn to Sewer Repl - 198,000 205,000 212,000 220,000 227,000 2,438,000 Poinsettia Lift Station Redundant Force Main - 325,000 - 980,000 - 4,020,000 - Sewer Line Capacity Improvements - - - - - - -
Sewer Modeling 199,999 - - - - - -
Sewer Monitoring Program (Capacity) 686,000 - - - - - 264,000 Vista Carlsbad Interceptor - Agua Hedionda LS and Forcemain (VC12-VC13) 33,125,776 (408,685) - - - - - Vista Carlsbad Interceptor - Buena Vista Lift Station Improvements 320,901 80,000 98,000 1,266,000 - - - Vista Carlsbad Interceptor - Reach VC14 To VC15 21,362,391 - - - - - - Vista Carlsbad Interceptor - Reach VC3 111,000 - 66,000 599,000 - - - Total Project Expenditures 62,616,470 (2,204,685) 5,374,000 20,280,000 5,960,000 4,247,000 2,702,000 ENDING FUND BALANCE N/A 4,327,247 (65,155) (17,513,457) (22,894,310) (26,792,162) (21,798,225) 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 7,265,855 16,830,095 14,161,564 17,862,641 6,027,267 15,052,217

REVENUES
Transfer from Sewer Operating Fund 18,767,240 18,890,469 27,444,077 27,734,626 18,983,950 66,554,352 Total Revenues N/A 18,767,240 18,890,469 27,444,077 27,734,626 18,983,950 66,554,352

CAPITAL PROJECTS
Agua Hedionda Lift Station Biological Monitoring and Maintenance 225,000 - - - - - - Barrio Traffic Calming 660,002 - - - - - -
Batiquitos Lift Station Improvements - 400,000 500,000 9,000,000 - - - Buena Interceptor Sewer Access Road Improvements 100,000 - 432,000 - - - - Buena Interceptor Sewer Improvements 1,208,691 - - 650,000 - - - Buena Interceptor Sewer Realignment - East Segment 1,907,000 - - 400,000 5,625,000 - - Cannon Road Lift Station Improvements 1,489,999 35,000 - - - - - Carlsbad Municipal Water District Building and Site Improvements 240,000 - 1,350,000 - - - - Chinquapin Lift Station Force Main Improvements - - 200,000 300,000 2,500,000 - - Chinquapin Lift Station Improvements 1,670,000 200,000 - - - - - Encina Capital Projects (EWPCF) 75,193,398 4,454,000 10,125,000 6,933,000 5,425,000 6,836,000 77,799,000 Home Plant Lift Station Improvements - - - - - - - Jefferson Street Sewer Replacement 1,200,000 592,000 - - - - - North Batiquitos Access Road Improvement 352,000 26,000 - - - - - Odor and Corrosion Prevention Assessment 358,000 300,000 - - - - - Orion Center 95,015 (1) - - - - -
Poinsettia Lift Station Rehabilitation 788,000 15,000 - - 16,000,000 - - SCADA Improvements 4,684,899 - - - - - - Sewer Condition Assessment 1,707,999 100,000 105,000 158, 000 158,000 158,000 1,500,000 Sewer Lift Station Repairs and Upgrades 5,175,386 186,000 186,000 186,000 186,000 186,000 1,856,000 Sewer Line Capacity Improvements 5,690,046 500,000 6,000,000 500,000 6,000,000 500,000 12,000,000 Sewer System Rehabilitation and Replacement 14,426,479 2,279,000 2,279,000 2,279,000 2,279,000 2,279,000 27,400,000 Terramar Area Coastal Improvements - - - - - - -
Vallecitos Interceptor Sewer Cleaning and CCTV 890,001 - - - - - 1,000,000 Vista Carlsbad Interceptor - Agua Hedionda LS and Forcemain (VC12-VC13) 104,000 (104,000) - - - - - Vista Carlsbad Interceptor - Buena Vista Lift Station Improvements 676,901 - 228,000 2,952,000 - - - Vista Carlsbad Interceptor - Reach VC3 - 80,000 154,000 385,000 1,397,000 - - Vista Carlsbad Interceptor - Rehabilitation (VC1 and VC2) 311,000 140,000 - - - - - Vista/Carlsbad Interceptor - Point Repair Reaches (VC13 & VC14) 3,000,000 - - - - - - Total Project Expenditures 122,153,816 9,202,999 21,559,000 23,743,000 39,570,000 9,959,000 121,555,000 ENDING FUND BALANCE N/A 16,830,095 14,161,564 17,862,641 6,027,267 15,052,217 (39,948,431)

SEWER CONNECTION FEE FUND

SEWER REPLACEMENT FUND
June 16, 2026
Item #6 Page 603 of 618
Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 I-37
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 4,848,275 8,776,087 10,897,463 14,033,711 16,320,822 17,604,796

REVENUES
Developer Fees 8,637,813 2,649,376 3,226,248 2,377,110 1,373,975 35,755,647 Total Revenues N/A 8,637,813 2,649,376 3,226,248 2,377,110 1,373,975 35,755,647

CAPITAL PROJECTS
Avenida Encinas Coastal Rail Trail and Pedestrian Improvements 5,347,653 3,220,000 - - - - - Carlsbad Boulevard Realignment - Manzano Drive to Island Way - - - - - - 3,681,000 Carlsbad Village Drive Widening - Pontiac Drive to Victoria Avenue - - - - - - - El Camino Real Right Turn Lane to East Bound Alga Road - - 438,000 - - - - El Camino Real Widening - Arenal Road to La Costa Avenue 7,250,001 4,000,000 - - - - - Sidewalk/Street Construction Program 2,450,000 - - - - - 2,000,000 Terramar Area Coastal Improvements 6,650,004 (2,600,000) - - - - - Traffic Impact Fee Funds to CFD #1 - 90,000 90,000 90,000 90,000 90,000 - Traffic Impact Fee Update 318,001 - - - - - -
Traffic Monitoring Program 1,745,415 - - - - - - Valley and Magnolia Complete Streets 3,536,207 - - - - - - Total Project Expenditures 27,297,281 4,710,000 528,000 90,000 90,000 90,000 5,681,000 ENDING FUND BALANCE N/A 8,776,087 10,897,463 14,033,711 16,320,822 17,604,796 47,679,443 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 9,247,582 6,430,106 3,093,020 607,652 (1,461,663) (2,404,584)

REVENUES
Transportation Taxes 5,949,524 6,105,914 6,259,632 6,415,685 6,574,079 66,243,628 Total Revenues N/A 5,949,524 6,105,914 6,259,632 6,415,685 6,574,079 66,243,628

CAPITAL PROJECTS
ADA Improvement Program 4,445,002 1,058,000 175,000 618,000 215,000 645,000 4,950,000 Barrio Street Lighting 2,560,000 (1,000,000) - - - - - Barrio Traffic Calming 1,024,999 - - - - - - Carlsbad Boulevard and Tamarack Avenue Intersection Improvement 1,054,001 - - - - - - Carlsbad Boulevard Realignment - Manzano Drive to Island Way 2,000,000 - - - - - 932,000 Carlsbad Village Drive and Grand Avenue Pedestrian and Crossing Improvements - - - 170,000 230,000 - - Carlsbad Village Drive Widening - Pontiac Drive to Victoria Avenue - - - - - - - Chestnut Avenue Complete Street Improvements - Valley to Pio Pico - - - 250,000 - - - Chestnut Complete Street I-5 to Railroad Project Study - - - 250,000 - - - College Boulevard Extension 529,549 - - 200,000 540,000 - - Coordinated Traffic Signal Program 2,583,980 - - - - - - Coordinated Traffic Signal Program 1,000,001 - - - - - - El Camino Real Widening - Poinsettia Lane to Camino Vida Roble 3,155,000 250,000 - - - - - El Camino Real Widening - Sunny Creek to Jackspar 5,610,000 - - - - - - Kelly Drive and Park Drive Complete Street Improvements 4,675,000 - - - - - - Pavement Management Program 30,886,565 8,452,000 5,200,000 5,800,000 6,000,000 5,600,000 80,000,000 Pavement Management Program 19,196,476 1,007,000 1,068,000 1,132,000 1,200,000 1,272,000 13,881,000 South Carlsbad Coastline 1,689,777 - - - - - - State Street and Grand Avenue Road Improvements - - - 325, 000 - - - Street Lighting Replacement Program 3,325,001 - - - - - - Terramar Area Coastal Improvements 2,000,000 (1,000,000) - - - - - Valley and Magnolia Complete Streets 1,199,999 - 3,000,000 - - - - Valley Street Traffic Calming - - - - 300,000 - -
Total Project Expenditures 86,935,351 8,767,000 9,443,000 8,745,000 8,485,000 7,517,000 99,763,000 ENDING FUND BALANCE N/A 6,430,106 3,093,020 607,652 (1,461,663) (2,404,584) (35,923,956)

TRAFFIC IMPACT FEES (TIF)

TRANSNET - LOCAL
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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 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 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 - POTABLE

WATER CONNECTION - RECYCLED
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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) 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 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 - POTABLE

WATER REPLACEMENT - RECYCLED
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Item #6 Page 606 of 618
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GLOSSARY OF CAPITAL PROJECT FUNDING

SOURCES
BTD
2 – Bridge and Thoroughfare District No. 2 developer fees are paid to partially fund the Poinsettia Lane and Aviara Parkway street construction project.

BTD
3 – Bridge and Thoroughfare District No. 3 developer fees are paid to partially fund Cannon Road improvements.

CD
BG – Community Development Block Grants are allocated by the federal government to help develop viable urban communities for low and moderate income households.

CFD
1 – The City of Carlsbad Community Facilities District No. 1 (Mello-Roos) funds civic projects, I-5 interchange projects, and road segments.

Fed
eral Grants – Federal Grants such as the Schools Traffic Safety Program.

Gas
Tax – Gas Tax revenues for street projects are received under the Streets & Highways Code of the State of California.

Gas
Tax 1B – Gas Tax revenues for street projects specifically for road maintenance and rehabilitation are received under the Streets & Highways Code of the State of California.

Ge
neral Capital Construction – General Capital Construction funds, created through fund transfers from the city's General Fund, are used to fund various municipal and other capital projects.

Inf
rastructure Replacement Fund (IRF) – Annual transfers from the General fund pay for major maintenance and replacement of the city’s infrastructure.

Ot
her – Sources include revenues related to pending financing districts, property owner contributions, and contributions from other agencies.

Par
k-in-Lieu (PIL) – Park-in-Lieu Fees are charged to developers for park acquisition and development.

PIL fees are segregated by quadrant to fund park projects in those quadrants.

Par
king In-Lieu – Park in-Lieu fees are collected from new developments in Carlsbad Village that do not provide adequate parking facilities for use in construction of future parking facilities and improvements.

Pl
anned Local Drainage (PLD) – Drainage facilities necessitated by growth are paid from developer Planned Local Drainage Fees. PLD fees are segregated by drainage area.

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Public Facilities Fees (PFF) – Public Facilities Fees are charged to developers to fund civic facilities, park development, streets, traffic signals, and other facilities.

Sew
er Connection – Development fees include Sewer Connection charges for expansion of sewer lines and facilities.

Sew
er Replacement – Sewer Replacement is part of sewer user fees and pays for repair and replacement of the city's existing sewer system.

Sta
te Grants – State Grants such as Veteran’s Memorial Park funding.

Tr
ansportation Development Act (TDA) – City street and bicycle projects can receive funding from Transportation Development Act sales tax receipts.

Tr
affic Impact Fees (TIF) – Developer Traffic Impact Fees are used for various street construction and improvement projects.

Tr
ansNet (BIKE, -HWY, -LOCAL, -STP) – Receipts of County Sales Taxes allocated by the San Diego Regional Transportation Commission finance various bicycle, freeway interchange and local road improvement projects.

Wate
r Connection – Development fees include Major Facility Fees used to fund expansion of water lines and ancillary water facilities.

Wa
ter Replacement – Water Replacement funds are included in water utility rates and pay for the repair and replacement of existing potable water lines and facilities.

Wa
ter Recycled – Revenues used to fund new Recycled Water projects; revenues for Phase III expansion includes grant and loan funds.

Wa
ter Recycled Replacement – Recycled Water Replacement funds are included in utility rates and pay for the repair and replacement of existing recycled water lines and facilities.

Zo
ne 5, 13, 16, 17, 18 Park Fee (ZONE 5) – Fees paid by development in Local Facilities Management Zones 5, 13, 16, 17 and 18 to fund a Business Park Recreational Facility in the city's industrial corridor.

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June 16, 2026
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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 1 Fiscal Year 2026-27 Budget
Community Workshop Summary
The City of Carlsbad held a public workshop May 21, 2026, from 5:30 to 7:30 p.m., at the Faraday Administration Center, to provide an opportunity for community members to learn about the proposed fiscal year 2026-27 city budget, ask questions of staff and provide feedback.

City staff promoted the workshop through the following channels:
• News release
• Print ad in the Coast News
• Digital ad on the Coast News
website
• Social media posts
• Email newsletters
• City website and calendar
• Nextdoor post
• Fliers at city libraries, community
centers and other facilities
• Announcements during City
Council meetings
Exhibit 23
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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 2 Attendance
9 community members attended all or part of the workshop 7 provided verbal comments or questions
No written comments were submitted
Information shared
City staff presented a budget overview that was similar to the presentation made to the City Council May 19, 2026, then allowed time for community members to ask questions and provide comments.

Summary of questions and comments
Question: I am a longtime volunteer trail captain. We only have one park ranger currently covering all of our city parks. Can we get more? Answer: The Carlsbad Police Department currently has two ranger positions, one of which is filled. The person who was previously in the other ranger position is now at the Police Academy as a police recruit. We are in the process of back filling that position, and expect to conduct interviews for that recruitment soon.

Additionally, the City Council approved a new COPPS team in March, which we are working on staffing. That team will house the rangers so it will be a force multiplier with those six additional police positions. These positions will have ranger capabilities and police powers, so they can go and police the trails and do many other things the rangers currently do.

We are going to assess how that works over the next year and provide some feedback in 2027.

Question:

The city needs to allocate funds to improve law enforcement coverage for Lake Calavera trails. More and more illegal trails are being created, and habitat degradation is occurring. The city has made a commitment to preserve 40% of open space. The city should allocate budget for law enforcement positions for two reasons: Those areas have ecological and economic value. Many tourists from other states visit the area, so they are important to preserve. A cheap way to help could be to put signs on the trails with phone number of the ranger or information on how to report issues to the Police Department.

Answer: The city has an agreement with the Center for Lands Management to help oversee trails and educate the public on proper trail use to help curtail irresponsible trail development. Additionally, the city is in the process of replacing and adding new signs across 16 city-owned June 16, 2026
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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 3 preserves. The new signs will be larger, brighter and light reflective to get the attention of users who are not obeying regulations. They have the phone number you mentioned on them.

Additionally, the city will be putting out a request for proposals for the preserve management agreement, as the current agreement expires late this year. Ultimately, the agreement will be brought before the City Council for award.

Comment: I understand that the COPPS program will be a force multiplier, but show us that it’s a solution and demonstrate that there is less damage to trails as a result. I am glad to hear you’ll be looking at it and seeing how it works.

Question: I’m trying to explore how much staff time is dedicated to reviewing development proposals, and how much of those city costs are recovered? The cost recovery appears to be about 50% for Planning and Land Development Engineering. I understand there is a plan to improve cost recovery, but I’m interested in getting more information about how these costs are being recovered and how many staff hours and resources are used to review applications. If there is a flood of applications, will that create a budget problem? Do the fees need to be adjusted to reflect actual and indirect costs?
Answer: The cost recovery table in the presentation shows average cost recovery levels. The city’s cost recovery policy is set up with different tiers. For example, for permit types that are discretionary and have no public benefit, cost recovery is high, between 81% and 100%. The developer application cost recovery is low. Under the updated proposed cost recovery, the target for the master fee schedule is planned to increase incrementally so it eventually gets to the 81% to 100% range.

What will be included in the master fee schedule with this current budget cycle is the first year of the phased approach. The blended rate that you see for the average includes all of the permit types that are processed by each division. For instance, the Planning Division rate proposed is 56%. It includes discretionary, administrative and ministerial permits, and cost recovery targets vary for different permit types. The blended average does not necessarily represent what a developer is paying.

In terms of staff hours, a process is set up to account for the actual hours spent on applications. So, the General Plan or Master Plan amendments that are associated with the rezoning project that you referenced, baseline assumptions are set for those projects that are speculative on how much time we anticipate it will take. If it takes a June 16, 2026
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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 4 really long time because of public comment or a controversy that causes staff to delve into different areas of analysis that wasn't anticipated, then we can bill on a time basis. The city’s baseline assumption is 150 hours for permit applications, and staff tracks those hours as they work on a project. Any time a developer exceeds the hours assumed, they are charged on an hourly basis. The result is that if staff spends more than the assumed hours for a given project, we bill the developer based on the actual cost for time spent.

The city is planning to increase the cost recovery fees over a five-year phased approach. Consistent with the proposed cost recovery target, there are other fees that are phased to be fully hitting their target in first year while others will take three years or five years. That schedule is primarily based on the rate of change, so the permit types that are currently being discussed had a recovery rate of about 30%, but they're scheduled to go up to 100%. It would be pretty shocking to jump from a $3,000 fee to a $12,000 fee, so the cost recovery schedule amortizes that change over five years for those projects that have permit types with the most significant cost increases. Those that did not have significant increases are being implemented in the first year (fiscal year 2026-27).

Follow-up
question:

Does the General Fund feed the difference then, if costs are higher than we expect?
Answer: If it exceeds our baseline cost assumptions. To the point of the fiscal impact, the existing department budget is set, so the more permits that we get is the more revenue that comes in. It doesn't change our resources, so we're able to accommodate it without any fiscal impact to the operational budget.

Question: Does the city have any AI initiatives? I don’t know much about AI, but have started to use it. After a search I found that many cities use AI to manage traffic patterns and identify crime hot spots, for instance.

Answer: Cities throughout the country are struggling with how to use AI and whether it can make things more efficient. There isn’t an AI section in this proposed budget, but we do plan to bring a policy forward to the City Council in the coming year to get some guidance from them on how they would like AI to be utilized within the operations of our city, if at all. From there, we'll be able to craft some sort of policy that will give staff an opportunity to dabble a little bit if it makes sense, or identify the areas where we don't intend to use AI at all. Our goal is to identify what makes the most sense for the services we provide, and for our residents.

If we were to use AI in any way we would want to include language that June 16, 2026
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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 5 specifically states when it's being used in city documents, from a total transparency standpoint with the public. So if AI was used to assess or review a document, we would want the language to say AI was used to review this document.

We don't want to be behind the curve on this, so we're going to lean in as soon as we get a little bit of guidance from the City Council, because this is a policy decision.

Question: Regarding the Community-Oriented Policing and Problem-Solving (COPPS) program, I know it was approved in March this year. Personally, I think it's a pretty good initiative. Is the primary reason for the program the increased demonstrations we’ve seen in recent years? If that’s the only reason, will the program be drawn down in future years if not needed?
Answer: The Police Department presented a comprehensive proposal to the City Council on March 25, 2026. This was on the heels of last year, when we presented an even more thorough comprehensive proposal that had a five-year staffing plan built in. We outlined key times over the upcoming five years where we would return, and the Community Oriented Policing Team was the second ask of that five-year plan.

There is a variety of work this team is intended to do. We had a team 15 to 20 years ago that was disbanded, with staff moving to other parts of the department.

When we presented to the City Council, we mentioned almost everything that we knew this team would be a part of, including the protests. For reference, a protest on Carlsbad Boulevard takes 40 officers to staff. That’s one small snippet of what team will be assisting with.

The goal is to enhance crime prevention, being proactive rather than reactive. For instance, two to three years ago, there was a string of burglaries in the southern part of Carlsbad. Ultimately, we made an arrest for a South American theft group. To work toward that arrest required months and months of work to build the case to allow that arrest. We want to be able to dedicate more time to prevent crimes like that. The team will also allow us to take time to identify trends and respond as cohesive team. We're trying to spread the workload among the additional officers that we are receiving, so our patrol cops can respond to the 911 emergencies, our detectives can work their caseloads, and other officers can focus on their work areas. The COPPS team will be the glue to these different units.

Comment: I have a cost recovery question about housing. A couple years ago, and June 16, 2026
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Docusign Envelope ID: EC574C28-EE41-8112-82BD-B665E154CC26 6 maybe this has been updated, but I was at a Planning Commission meeting for a development on Tyler Street and the developers were paying an in-lieu fee for affordable housing. I think it was $116,000, and I don't know how the city can build affordable housing for that much money. Is that still the same? How does that work? Is the city actually recovering enough in-lieu fees to cover those kind of projects? Answer: The fee was amended about three years ago, and there are different fee levels. If the developer is building a single-family house, they pay a particular fee, if it's between two and six units then it's a different fee.

It's also based on square feet now, so the larger the unit the more the developer would be paying. If the development is more than seven units but less than 20 and the developer is going to buy a credit, which may be what you're referring to with that $116,000 or so. That fee is paid instead of providing a unit on site. It works as though the developer is buying a credit in something that's already built.

You asked if that could be enough to produce a unit - that fee is actually established based on how much we did pay already to create those units. So, the cost of the units is already front loaded, so that was our subsidy amount, and then it does go up each year with the Consumer Price Index. It's effectively reimbursing the city for an investment we have already made in providing the unit.

Comment: I’m a volunteer trail captain. I would like to see that we fund our park rangers. I’ve spent a few years in Hosp Grove covering graffiti.

I would also like to see our affordable housing fee increase per square foot by a factor of about 10 or so, to a more realistic number. Someone building a $2 million house can afford a fee more than someone building a smaller house. Right now, we’re on track to have an extra 30,000 to 50,000 residents in Carlsbad because of the way our affordable housing fee is structured. It’s encouraging developers to get density bonus and put in non-affordable units when we really need affordable units. Right now, we’re missing infrastructure we’re going to need, including wider streets, sewer lines and drainage. It’s hard to tell now, but after 3,000 to 4,000 new units, the infrastructure won’t be able to handle it.

Response: We have funding for two full-time Park Rangers. One of them is currently at the Police Academy so we're in the process of recruiting and backfilling for that position, but we do still fund two full-time Park Rangers. Our new Community Oriented Policing and Problem-Solving Team will be a force multiplier in assisting with some of the trail issues that we are seeing.

Carlsbad City CouncilJune 16, 2026

Carlsbad City Council
June 16, 2026