Carlsbad projects balanced budget focused on public safety, infrastructure investments and fiscal responsibility

Proposed fiscal year 2026-27 budget maintains focus on core services and completing key community projects 

The City of Carlsbad’s proposed fiscal year 2026-27 budget focuses on maintaining high levels of service for our community, delivering and completing major capital improvement projects, and investing in public safety and core infrastructure – all while maintaining a AAA credit rating, healthy reserves and a balanced budget.  
 
Despite continued economic uncertainty driven by low consumer confidence, geopolitical tensions and lingering inflation, this marks the second consecutive year the city’s proposed General Fund budget increase is lower than the statewide inflation rate of 3.7%.   

The preliminary budget for fiscal year 2026-27 is now available for review and will be presented to the City Council at its May 19 meeting. A community budget workshop will follow on May 21 to provide community members with an opportunity to learn more and ask questions. 
 
Community budget workshop  
Thursday, May 21  
5:30 to 7:30 p.m.  
City of Carlsbad Faraday Center  
1635 Faraday Ave. 
 
What’s in the budget? 
 
The proposed $249.1 million spending plan covers most day-to-day city services and includes a 2.8% increase over last year’s General Fund budget. This increase remains below the statewide inflation rate of 3.7%. 

The proposed spending plan not only maintains the city’s strong General Fund reserve policy of 40% but will exceed that number by $45 million, bringing the city’s General Fund reserve for the upcoming fiscal year to 58%.  

The proposed fiscal year 2026-27 spending plan allows the city to continue investing in projects and services that support the City Council’s 5-Year Strategic Plan goals. 

Key investments proposed include: 

Quality of life & public safety 

• Fully funds costs associated with the new community-oriented policing and problem-solving team (COPPS team) approved by the City Council on March 24, 2026.  

• Continues the multi-year effort begun last year to enhance fire emergency response by reclassifying an additional six EMTs to paramedic firefighters. 

• Completion of beach stairs replacement and sidewalk widening along Carlsbad Boulevard between Pine and Tamarack Avenue. 

• El Camino Real road widening between Arenal Road and La Costa Avenue. 

• Launching a multiyear effort to replace and upgrade traffic detection equipment at various intersections to improve traffic flow. 

• Maintain 7 day-a-week library services and hours that began mid 2025 with the return of Sunday hours. 

• Funding for additional all-way stop sign analysis to respond more quickly to resident requests. 

• An emergency backup generator for the city’s Safety Training Center. 

Sustainability 

• New energy-efficient pedestrian lighting in the Village. 

• Invests $5 million into the city’s Stormwater program for flood and pollution prevention and infrastructure maintenance. 

• Continuing the replacement of the city’s fleet vehicles with the purchase of four electric and 14 hybrid vehicles in the next fiscal year, bringing the total number of city vehicles that are EV or hybrid to 177.  

• Addition of electrical vehicle charging stations at State Street parking lot. 

• Replacement of non-functional, non-recreational natural grass at several city properties with drought tolerant landscaping to reduce water use and maintenance costs.  

Community character & connection 

• Funding to support ongoing maintenance with an additional pool maintenance employee along with additional part-time lifeguards for the newly renovated Monroe Street Pool, which is anticipated to reopen later this year. 

• Construction of Veterans Memorial Park, which is expected to begin this summer. The 93.7-acre site will honor veterans for their service and celebrate the site’s natural beauty and views. It will feature family-oriented amenities, and minimize environmental impacts by maintaining over half of the land as protected habitat. 

• Construction of eight new pickleball courts – four courts each at Stagecoach Community Park and Calavera Hills Community Park. 

• Construction of a one-mile segment of the Coastal Rail Trail and pedestrian improvements along Avenida Encinas between Palomar Airport Road and the Poinsettia Coaster Station. 

• Analysis of converting parallel parking spaces to diagonal parking along several streets in the Barrio to increase on-street parking. 

Organizational excellence 

• Continuing to fund city operational infrastructure and technology systems to modernize and ease service delivery to residents and employees. 

• Adding building inspections to the city’s online permit portal so customers can easily view building inspection history and schedule building inspections online. 

The city is continuing to make strong progress on finishing capital improvement projects, with several completed on time and under budget in fiscal year 2025-26, resulting in approximately $4.8 million returned back to the city’s Capital Improvement Program fund. The proposed budget also updates the project list to remove projects that are no longer necessary or feasible, helping ensure resources remain focused on the community’s highest priorities while maximizing long-term financial efficiency.  

 
At a glance