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News from the City of Carlsbad | Oct. 10, 2024

I’m back to writing about the city budget, this time with a focus on how the city uses unspent funds from the previous fiscal year to improve our financial position in future years. Today I will explain what that means and let you know about these other stories of the week:

• Funds invested in city’s long-term financial health
• Carlsbad remains a leader in clean energy
• Citizens Academy ride along: Public Works
• Pick up free compost and mulch this Sunday
• Alga Norte to close for maintenance starting in November
• Experience the arts this weekend
• See where construction is planned next week in Carlsbad
• City holiday service schedule
• Upcoming city meetings
• Farmers’ market turns 30

Funds invested in city’s long-term financial health

If you’re a regular reader of these updates, you might remember my series explaining the city’s budget process leading up to its approval in June. Our budget gets a lot of attention during the first half of the calendar year, but the City Council makes important financial decisions all year long. On Tuesday, they approved something called “carry forwards.”

• The city operates on a fiscal year running from July 1 through June 30.
• At the end of the budget year, once the final accounting is done, we often have a surplus, meaning we end the year with unspent funds.
• This could be due to changing needs, new efficiencies, projects being reprioritized and revenues coming in higher than expected.

Budget policies

In recent years, the City Council has put several new budget policies in place. Together, they formalize strategies and best practices for the city’s long-term fiscal health. They also increase transparency, so it’s easy for the public to track how taxpayer money is being used.

One of these policies puts a framework in place for how to use unspent funds from the previous fiscal year:

Priority 1 – Ensure we have enough money in our rainy day fund

• Just like the personal finance advice keep six months of living expenses in your savings account in case of emergency, the city maintains cash reserves for that same purpose.
• The City Council’s policy is to keep an amount equal to at least 40% of the annual General Fund operating budget in this reserve account. For example, for every $100 in our budget, we should have another $40 set aside for emergencies.
• Keeping cash on hand is critical to ensuring we can maintain city services in case of an emergency or other unforeseen need. 
• This fund is treated like a lock box, with a policy for how that money can be used.
• So, the first thing we check at the end of the fiscal year is our general fund reserve balance. If it’s less than the 40% target, we use unspent money to bring the fund up to this target.
• This year, our General Fund reserve is healthy at $154.3 million, which is 65% of the adopted budget. That is $58.9 million above the 40% target.

Priority 2 – Reduce long-term pension costs

The next thing we look at is pension funding. This is a complicated topic, so here is a very high-level explanation:

• When city employees retire, they get pension benefits instead of full social security benefits.
• Most California cities are part of the state pension system called CalPERS, which stands for California Public Employees' Retirement System.
• CalPERS invests these contributions and uses the returns to help fund pension benefits for those already retired.

It’s important to make sure that the amount of money available to meet pension obligations doesn’t fall too far behind the long-term needs. When it does, this is called pension debt.

If CalPERS’ investment returns fall short of expectations, this debt can suddenly increase.

The City Council has two policies related to managing pension costs: one sets a goal of keeping the city’s pension 80% funded; the other established a separate pension trust account where the city can manage how funds are invested.

• Because keeping our pension well-funded ends up saving money in the long run, this policy is expected to save the city about $8 million over the next five years.
• At Tuesday’s meeting, the City Council approved contributing $7.5 million of last year’s unspent funds to our pension trust account.
• This keeps us on track with our policy and is why we have among the best funded pensions in the region (if you take out the cities that have borrowed money to fund their pensions, we would be tied with Coronado for having the smallest pension debt in the region).

Priority 3: One-time expenses for other needs

• Finally, if there is money remaining after the first two priorities are met, the city looks at other funding needs.
• These must be one-time expenses rather than ongoing services, programs or personnel costs.
• We focus on the goals of the City Council’s Five-Year Strategic Plan to ensure we are putting resources toward the community’s highest priorities.
• For example, on Tuesday, the City Council approved using unspent funds for public safety equipment, a pilot program to support local businesses and economic development, and traffic safety projects.

The City Council also approved carrying forward the $5.2 million it had budgeted last year to use as matching funds for a federal Railroad Crossing Elimination Grant. We are working with SANDAG and NCTD to pursue this grant funding for the project to put the railroad tracks below street level through the Village and Barrio, roughly between the Agua Hedionda Lagoon and Buena Vista Lagoon.

See the full list of funding approved Tuesday. You can also learn more about the budget and see all the policies we use to safeguard the city’s financial health.

Carlsbad remains leader in clean energy

According to a Clean Energy Alliance report Tuesday, nine out of 10 Carlsbad homes and businesses are now getting at least half their energy from clean sources, thanks to an effort spearheaded by the City of Carlsbad.

Clean Energy Alliance formation

Under state legislation passed in 2002, cities and groups of cities can choose to purchase power directly from suppliers instead of through their local utility (in our case, SDG&E).

• In 2018, the City of Solana Beach was the first in our region to create a “community choice aggregation” program (sometimes called community choice energy).
• Having watched the Solana Beach program develop, in 2019, the City of Carlsbad studied the feasibility of creating a new program that could include multiple cities. 
• By combining with other cities, our purchasing power is greater.
• In 2019, the cities of Carlsbad, Del Mar and Solana Beach came together to form a new community choice energy program called the Clean Energy Alliance (Solana Beach ended its program and moved over to the new one).
•  In 2021, the cities of Escondido and San Marcos joined the Clean Energy Alliance. The following year, Oceanside and Vista signed on.

More than 200 California cities and counties are members of community choice energy programs.

Why cities join

The main reason cities choose to form or join a community choice energy program is to give residents and business greater access to renewable energy sources.

• Cities also can negotiate their own deals with energy suppliers and therefore have greater control over costs. So far, Clean Energy Alliance customers’ energy rates have been, on average, about 2% lower than SDG&E’s.
• Community choice energy programs can boost the local economy by using some of the money generated from ratepayers to build and support local renewable energy projects.

What options are available?

• Clean Energy Alliance customers can choose to have 50% or 100% of their energy come renewable sources. SDG&E’s power comes from 42% renewable sources.
• If you choose the 50% option, you can specify that another 25% of your power come from clean sources that are not renewable, but still better for the environment than old-style power plants. Most customers in Carlsbad have this option.
• You can change your energy mix at any time.

* Clean energy and renewable energy are often used interchangeably, but they are not the same. Carbon free energy sources do not emit greenhouse gases. Renewable energy comes from sources that naturally replenish, like sunlight and wind. 

Citizens Academy ride along: Public Works

If you’ve never thought about who makes sure clean water gets delivered to your tap, the streetlights come on at night, and sewage gets transported to the treatment plant, that’s sort of the point. We want you to enjoy your lives feeling confident it’s all just handled.

Last Thursday, our Citizens Academy cohort got to meet some of the people and see some of the equipment responsible for the city’s day-to-day public works operations. See the slide show.

Public Works does way too many things to cover here, but you can sign up to go through the academy next fall and see for yourself. In the meantime, it’s safe to say Public Works has the city covered … from A to Z.

Public Works, A to Z

Asphalt

Bridges

Construction

Drainage

Engineering

Facility maintenance

Graffiti removal

Household Hazardous Waste disposal

Inspections

Jetting (a way to clean pipes)

K-rail (the barriers used in road construction)

Lighting

Maintenance

Non-potable (as in recycled water is non-potable – not for drinking)

Organics recycling

Pavement maintenance

Quality control

Road repairs

Sewage treatment

Traffic signal coordination

Utilities

Vehicle maintenance

Water pipes

Xeriscaping

Yard waste recycling

Zebra crossings (a type of crosswalk that is striped for better visibility)

Working for our environment

I have one exception to the idea that Public Works is working well when you don’t have to think about their services; that’s because environmental sustainability is also part of Public Works. We’d actually like you to think about protecting our environment every day.

I’ll go over what our Environmental Sustainability Department is in charge of in a future issue. For now, you can read our latest sustainability newsletter (and if you’d like to be added to the email list, you can sign up on our website).

Pick up free compost and mulch this Sunday

Fall is an excellent time to get your soil ready for root vegetables, herbs and leafy greens. Compost and mulch can help with that, and you can pick up both this Sunday at the Palomar Transfer Station. (Compost is used as a soil amendment. Mulch helps retain moisture and keep weeds down.)

Compost & Mulch Giveaway

Sunday, Oct. 13

10 a.m. to 2 p.m.

Palomar Transfer Station

5960 El Camino Real (enter from Orion Road)

Proof of Carlsbad residency required

Where to go

If you’re not familiar with the Palomar Transfer Station, that’s understandable. It’s a little tricky to find. Its address is on El Camino Real, but there is no entrance there. And, your route will be different, depending on whether you’re coming from the north or the south.

Northbound El Camino Real

Turn right on Orion Road, just past Palomar Airport Road

Entrance is on the right, before you get to Faraday Avenue

Southbound El Camino Real

Turn left on Faraday Avenue

Right on Orion Road

Entrance is on the left

Once you enter the property, you’ll be directed to the location of the compost and mulch giveaway. It’s way in the back corner, meaning you’ll also get a short unofficial tour of the transfer station.

First, notice the giant blue vehicle scale on your right. If you ever come to get rid of excess trash, your car will be weighed to determine the cost.

Next, on your right, you’ll get a glimpse of different waste piles in giant bays — bulky items, organic materials, recycling and trash. They can serve as a good reminder to take that extra moment to sort things properly at home. Seeing all this in one place may also motivate you to double your efforts to reduce waste overall.

How it will work

When you drive up, workers will help load the mulch and compost into your car. You don’t have to get out unless you need to get your container from the back of your car:

• You can get the equivalent of up to five 5-gallon containers (totaling 25 gallons) for compost, mulch or a mix of both
• A limited number of pre-filled bags will be available on a first-come, first-served basis

How to transport

Common ways people transport compost and mulch include:

• Buckets
• Empty trash cans
• Heavy duty bags meant for yard waste
• A box lined with a plastic bag
• Tarps

Free kitchen caddies will also be available for collecting food scraps for composting at home.

Now that you know how to get there, I’ll tell you about other convenient services you can take advantage of at the Palomar Transfer Station in a future update.

Alga Norte to close for maintenance starting in November



Alga Norte Aquatic Center will close for three months starting Nov. 12 for a project to replaster both pools and the spa and renovate the bathrooms and locker rooms. The City Council approved the construction contract Tuesday.

Our team scheduled this work to be done all at the same time during the slowest time of year to minimize the inconvenience to swimmers.

During construction, your Alga Norte pool pass will work at the Monroe Street Pool. If you have an Alga Norte pool pass and would rather pause or refund your membership, call 442-339-2685 or send us an email. You can sign up to get pool news via email to stay up to date on scheduling and programs. 

Experience the arts this weekend

We are hosting events this weekend designed to bring you very different artistic experiences.

Fiber in 3D Open Studios

Head to the Fiber in 3D exhibit at the Cannon Art Gallery, then create your own loom weaving during our open studio workshop. Take inspiration from the exhibition’s organic materials and recycled textiles to make your own creation.

Saturday, Oct. 12

12:30 to 2:45 p.m.

Dove Library

1775 Dove Lane

Flamenco performance

Experience the beauty of flamenco dancers, accompanied by live guitar.

Latidos Flamencos

Saturday, Oct. 12

5 to 6 p.m.

Dove Library

1775 Dove Lane

Limited seating is available, but you can bring your own chair.

See where construction is planned next week in Carlsbad

Check our construction map to find out about planned construction activities next week that could affect traffic.  

City offices closed this Monday

City offices will be closed on Monday, Oct. 14, in observance of Indigenous Peoples' Day. A full holiday schedule for city services is listed below:

●     Trash pickup: No delay

●     City offices: Closed

●     Emergency services: Regular service

●     City libraries: Closed

●     Cannon Art Gallery: Closed

●     City sculpture garden: Closed

●     City pools: Closed

●     Community centers: Closed

●     Leo Carrillo Ranch Historic Park: Closed

●     Senior Center: Closed

●     No street sweeping on city holidays

Upcoming city meetings

The next City Council meeting will take place at 5 p.m. Tuesday, Oct. 22, at City Hall.

You can see the full meeting schedule on our city calendar, which includes the upcoming meetings for our city boards and commissions.

Happy 30th to the Farmers' Market

This week the City Council presented a proclamation recognizing the 30^th anniversary of the Carlsbad farmers’ market. 

The market has grown from 20 vendors at the start in October 1994 to 65 today and has even helped launch local entrepreneurs specializing in natural foods. If you’re going next Wednesday (runs 2:30 to 7 p.m.), swing by the Carlsbad Village Association’s information booth for a complimentary slice of birthday cake and a chance to win prizes from local vendors.

Lastly, Good luck to our San Diego Padres in their make-or-break game against the Dodgers tomorrow. I’m optimistic we’ll recapture that magic from earlier in the series and get one step closer to winning it all.

Scott Chadwick

City Manager