Carlsbad Municipal Code Ch. 1.24 Expenditure Limitation

The acquisition and/or development of real estate by the city has profound financial impacts upon the budget of the city and upon the tax burden imposed upon the taxpayers.

The city's financial resources have become more constrained as a result of the passage of recent constitutional amendments such as Proposition 13 and the Gann Initiative Spending Limitation, thereby increasing the significance and importance of decisions by the city to spend large amounts of money to purchase or develop real property.

In the absence of the provisions of this chapter requiring voter approval for major land acquisition or development projects by the city these decisions are often made without adequate public review and comment in the context of an overall capital improvements program.

It is the intent of this chapter to provide the citizens and taxpayers of Carlsbad with an opportunity to express directly their preference by vote prior to major city expenditures for the purchase or development of land.

It is not the intent of this chapter to interfere with the normal day-to-day administration of the city or with routine ongoing capital expenditures.

(Ord. 1255 § 1, 1982)

For purposes of this chapter, the following words and phrases shall have the following definitions:

"City funds"

mean City of Carlsbad general fund moneys; federal general revenue sharing moneys and all other moneys, but shall not include categorical federal and state grants available to the city for specific purposes. City funds shall not include special assessments.

"Effective date"

means the date on which the proposed ordinance codified in this chapter was adopted by the City Council or was passed by the voters at the polls, whichever occurs first.

"Improvement to real property"

means the actual physical construction of improvements on real property owned, leased, or controlled by the city, or the modification, enlargement, or alteration of existing improvements on such property.

"Real property acquisition"

means the purchase or lease of any real property, improved or unimproved, within or without the corporate limits of the city to be paid for in whole or in part by city funds.

(Ord. 1255 § 1, 1982)

The city shall make no real property acquisition and/or no improvement to real property the cost of which exceeds $3.09 million dollars in city funds, adjusted annually on January 1 by the percentage increase in the regional construction cost index, unless the proposed acquisition and/or improvement project and the cost in city funds is first placed upon the ballot and approved by a majority of the voters voting thereon at an election. A project may not be separated into parts or phases so as to avoid the effects of this chapter.

(Ord. 1255 § 1, 1982; Ord. CS-481, 12/10/2024)

In determining whether or not the cost in city funds of a proposed real property acquisition or improvement to real property exceeds one million dollars, the following costs shall be included:

A. The purchase price of the real estate, including improvements, or the present value of a lease, as appropriate;

B. The contract price of the improvements;

C. All preliminary studies and reports directly related to the acquisition or improvement, including, but not limited to, environmental impact reports, architectural renderings, soils analyses, engineering work, and the like;

D. Finance cost, if any.

(Ord. 1255 § 1, 1982)

The City Council may adopt reasonable guidelines to implement this chapter following notice and public hearing.

(Ord. 1255 § 1, 1982)

This chapter shall not apply to any real property acquisition or improvement to real property used for public safety facilities. "Public safety facilities" include facilities for law enforcement services, fire rescue and prevention services, lifeguard services, emergency medical services and emergency operations, and training for staff providing these services

A. The proposed project has received its final discretionary approval; and

B. Substantial expenditures have been made in good faith reliance on the final discretionary approval; and

C. Substantial construction has been commenced in good faith reliance on the final discretionary approval, where construction is contemplated.

Whether or not a vested right has been obtained in a particular case is a question of fact to be determined on a case-by-case basis by the City Council following notice and public hearing.

(Ord. 1255 § 1, 1982; Ord. CS-481, 12/10/2024)

This chapter may be amended or repealed only by a majority of the voters voting at an election thereon.

(Ord. 1255 § 1, 1982)