Exhibit 2
RESOLUTION NO. 2026-185 .
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE RESTRICTION OF GENERAL FUND RESERVES IN FISCAL YEAR 2026-27 TO FUND THE $7,500,000 CONTRIBUTION TO THE CITY’S SECTION 115 PENSION TRUST
WHEREAS, City Council’s General Fund Surplus Policy (City Council Policy No. 87) allows for General Fund reserve levels in excess of the 40% target requirement to be used for one-time opportunity cost purposes at the discretion of the City Council; and WHEREAS, at the close of fiscal year 2025-26, the city’s unaudited General Fund reserve balance was 63% and has exceeded its General Fund Reserve Policy (City Council Policy No. 74) target of 40%; and
WHEREAS, at the close of fiscal year 2025-26, the remaining unaudited unspent and unencumbered expenditure budget for the General Fund was $16.5 million of which $107,254 has been carried forward because of a previous City Council resolution, resulting in an unspent budget of $16.3 million; and
WHEREAS, at the close of fiscal year 2025-26, the General Fund surplus, or actual revenues less actual expenditures, was $1.0 million; and
WHEREAS, City Council Policy No. 87 requires City Council approval for the carryforward of any unspent and unencumbered budget for a particular item equal to or greater than $100,000; and WHEREAS, a Section 115 Pension Trust was established by the City Council on September 12, 2023; and
WHEREAS, City Council Policy No. 86 strives to maintain a combined pension-funded status of 80% and allows assets in the city’s Section 115 Pension Trust to count towards the city’s combined pension-funded status; and
WHEREAS, as of CalPERS’ June 30, 2025, actuarial valuation report, the city’s combined funded status was 79.7%; and
WHEREAS, the city’s Section 115 Pension Trust shall be funded over a period of five fiscal years in order to achieve and maintain an 80% combined pension-funded status.
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.
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2.The proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The activity or projects for which this budget is intended to fund may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines.
3.That a contribution to the city’s Section 115 Pension Trust in the amount of $7,500,000 is approved.
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of Carlsbad and the Board of Directors of the Carlsbad Municipal Water District on the 29th day of September, 2026, by the following vote, to wit:
AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS: None.
ABSTAIN: None.
ABSENT: None.
_____________________________________
KEITH BLACKBURN, Mayor
______________________________________
SHERRY FREISINGER, City Clerk
(SEAL)
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