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HomeMy WebLinkAbout; ; OFFICIAL STATEMENT CARLSBAD BUILDING AUTHORITY REVENUE BOND; 1967-12-05OFFICIAL ST A TEMENT of the CARLSBAD BUILDING AUTHORITY San Diego County, California Concerning CARLSBAD BUILDING AUTHORITY REVENUE BONDS To Be Sold December Mission Beach OFFICIAL STATEMENT of the CARLSBAD BUILDING AUTHORITY SAN DIEGO COUNTY, CALIFORNIA CONCERNING $460,000 CARLSBAD BUILDING AUTHORITY REVENUE BON DS Bids To Be Opened At Office of the City Clerk Carlsbad City Hall Carlsbad, California at 2:30 p,m., Pacific Standard Time DECEMBER 5, 1967 In the opinion of Bond Counsel, the interest on the bonds is exempt from income taxes of the United States of America under present federal income tax laws and such interest is also exempt from personal income taxes of the State of California under present income tax laws. The date of this Official Statement is November 7, 1967 ii CARLSBAD BUILDING AUTHORITY BOARD OF DIRECTORS Lt. Colonel Alfred H. Peterson, U.S.M.C. (Ret.), President Lt. Colonel Elmer H. Jose, Jr., U.S.A.F. (Ret.) Claude R. Helton PARTICIPANTS IN THE JOINT POWERS AGREEMENT COUNTY OF SAN DIEGO BOARD OF SUPERVISORS Robert C. Cozens, Chairman DeGroff Austin Henry Boney Robert Dent F. A. Gibson Chief Administrative Officer T.M. Heglund CITY OF CARLSBAD CITY COUNCIL Wi 11 iom C. Atkinson, Jr., Mayor David M. Dunne, Vice Mayor John E. Jardine Ill Corl H. Neiswender Rolph E. Worthing George W. Killen, Acting City Manager Fronk C. Rice, Treasurer Margaret E. Adams, City Clerk SPECIAL SERVICES Bond Counsel Special Counsel to the Authority Architect Financial Consultant Trustee O'Melveny & Myers Los Angeles, California Rutan & Tucker Santo Ano, Cal ifornio Weber & Edwards, A.I.A. San Diego, California William L. Fieldman & Associates Los Angeles, California United States National Bonk Son Diego, California INTRODUCTION Eligibility of Bonds as Security for Public Funds Eligibility of Bonds for Underwriting by National Banks • THE AUTHORITY • Joint Exercise of Powers Agreement Civic Center Ground Lease • Civic Center Lease Rental Payments THE PROJECT. Project Costs • Bond Proceeds THE BONDS Authorization • Security • Terms of Bonds Creation of Specie I Funds • Application of Bond Proceeds Additional Bonds • Redemption of Bonds Prior to Maturity Use of Revenues Revenue Fund Allocation of Moneys in Revenue Fund to Special Funds Sinking Fund • Reserve Fund • Covenants of the Authority • Insurance THE TRUSTEE • FINANCIAL DATA OF THE CITY OF CARLSBAD MAY COMPANY SHOPPING CENTER GENERAL CITY INFORMATION SAN DIEGO COUNTY 2 2 2 2 3 5 6 6 7 7 7 7 7 8 9 10 10 10 11 11 13 15 16 17 17 25 28 39 iv Estimated Debt Service vs. Base Ren ta I Allocation of Band Proceeds. TABLE Mandatory Sinking Fund Payments Statement of Direct and Overlapping Debt Ratios Analysis of Overlapping Debt Authorized and Unsold Bonds Tax Levies and Collections Typical Tax Rates Comparative Tax Rates Revenues and Expenditures INTRODUCTION Bonds to finance the construction of public buildings for City Offices, City Council Chambers and Police Facilities for the City of Carlsbad and the County of San Diego are to be issued by the Carlsbad Building Authority. The Authority is a public entity formed pursuant to an agreement between the County of San Diego and the City of Carlsbad dated as of October 1, 1967. In general, the Authority will build the Project in accordance with plans and specifications previously approved by the City and County. When completed, the Authority will lease the Project to the City on a "net, net" basis for a term to coincide with the term of the Bonds. Annual rentals will be in an amount sufficient to pay principal and interest on the Bonds plus operating expense of the Authority. The Bonds are to be secured by rents payable by the City of Carlsbad to the Carlsbad Building Authority in accordance with the terms of the lease. Rents will flow from the City to the Trustee who will be responsible under the terms of the Indenture. The Trustee will pay principal and interest on the Bonds. This Official Statement, in addition to discussing the financing Program, the City and its economics, will describe, in brief, the various legal instruments relating to this financing. Complete copies of the following documents will be found in a booklet accompanying the Statement: 1.Notice Inviting Bids -Bid Form. 2.Joint Exercise of Powers Agreement. 3.Carlsbad Building Ground Lease. 4.Carlsbad Building Facilities Lease. 5.Bond Indenture. ***************** In the opinion of the Bond Counsel, the bonds hereby offered are eligible to secure deposits of public funds of local agencies in the State of California, pursu­ ant to Section 53651 of the Government Code. ****************** Application has been made to the Comptroller of the Currency for a ruling that the bonds are eligible for purchase, dealing in, underwriting, and unlimited holding by national banks. Said ruling is expected before opening of bids on the bonds. ****************** 2 3 THE PROJECT The City has retained the architectural firm of Weber & Edwards, A. I .A. of San Diego to design the Project. The architect has described the Civic Center as follows: "The building contains 16,000 square feet. It is a one story structure with masonry exterior walls and frame interior walls. The structure contains the city administrative offices and police facility. The roof is constructed using truss steel joists, clear spanning 50 feet with composition built-up roofing. The building has provisions for parking approximately 100 cars on the site. The floors are carpeted in most areas. The ceilings are acoustical tile. "The building is completely air conditioned with the exception of. the 2500 square foot Council Chamber. The heating and air conditioning is accom­ plished through the use of hot and chilled water. "The building consists of four basic areas: (1) Council Chamber; (2) the City Administrative wing; (3) the Building Services wing, which will con­ tain the Building Inspection Department, the Engineering Department and the Planning Department; and (4) the Police Facility." It is intended by the City and the County that the occupancy of the Project will be primarily for gener9l City purposes, but that significant portions of the total Project area will be utilized by County under present planning. Same of the intended uses by the County of the Project will include use of the following areas: (a)Conference Room. (b)Interview Room. (c)Training and Show-up Area. (d)One Jail Cell. (e)Visitors-Prisoner Room. (f)Attorney-Prisoner Room. (g)Office Space. The City and County agree that the aforementioned space and facilities to be provided wi II be made ova ii able for use by the County under a sublease or other agreement to be made with the City, and the County shall pay a reasonable value on a per diem or other basis for said use. 5 THE BONDS The following information relating to the Bonds, their security, etc., has been excerpted from the Resolution of Issuance, a copy of which will be found in the booklet of legal documents which accompanies this Official Statement. Authorization. (Section 2.01) Resolution No. 3 of the Carlsbad Building Authority constitues the Indenture providing the terms and conditions for the issu­ ance of $460,000 par value Carlsbad Building Authority Revenue Bonds. Security. (Section 1.02) The bonds are not a debt or direct obligation of the City of Carlsbad or the County of San Diego. Rather, they shall be equally secured by a pledge of and a I ien upon the Revenues of the Authority, and as long as any bonds are outstanding, the revenues and interest thereon may be used only as provided in the Resolution, except by proper authorization by the bondholders. "Revenues" include: All rent and other income derived from the Project by the Authority; any damages not part of Project costs received under terms of the construction contract; any interest or other income derived from investment of funds other than the Construction Fund. Terms of Bonds. (Section 2.02) The Bonds will mature in the years and in the amounts set forth in the Notice Inviting Bids which accompanies this Official Statement. The Bonds maturing 1968 to 1978, inclusive, are Serial Bonds and the $340,000 Bonds maturing 1992 are Term Bonds. The term bonds are subject to prior redemption out of mandatory sinking fund payments and from other sources as described below. Creation of Special Funds. (Section 3.02) The Trustee shall establish, maintain and hold in trust eight separate funds which are hereby created for the purpose of the Resolution as fol lows: (a)Construction Fund. The Construction Fund pursuant to Section 3 .04. (b)Revenue Fund. The Revenue Fund pursuant to Section 5. 0 l. (c)Interest Fund. The Interest Fund pursuant to Section 5.02. (d)Retirement Fund. The Retirement Fund pursuant to Section 5.02. (e)Sinking Fund. The Sinking Fund pursuant to Section 5.02. (f)Reserve Fund. The Reserve Fund pursuant to Section 5.02. (g)Working Capital Fund. The Working Capital Fund pursuant to Section 5.02. (h)Operation and Maintenance Fund. The Operation and Maintenance Fund pursuant to Section 5. 02. 7 8 Application of Bond Proceeds. (Section 3 .03). The proceeds received by the Authority from the sale of the Bonds shall be deposited with the Trustee, who shall forthwith set aside such proceeds (except premium and accrued interest which shall be credited directly to the Interest Fund), in the Construction Fund, from which the following amounts shall be allocated and deposited in the following respective funds: (a)The Trustee shall set aside in the Reserve Fund an amount equal to one­ half of the Maximum Annual Debt Service on the outstanding Bonds. (b)The Trustee shal I set aside in the Interest Fund an amount, which together with premium and accrued interest, if any shal I be equal to six (6) months' interest from the date of the Bonds. (c)The Trustee shall set aside in the Working Capital Fund the sum of one thousand five hundred dollars ($1,500). There shall also be deposited, transferred to, or held in the Construction Fund by the Trustee: (i)Any monthly rent which may be paid by the City with respect to any portion of the Project prior to completion of the entire Project. (ii)All interest and other income earned on stated moneys in the follow­ ing funds held by the Trustee under the provisions of this Resolution for periods prior to completion of the entire Project: (1) the Con­ struction Fund, or (2) the Reserve Fund under Section 5.02 (c) if such transfer is requested by the Authority, or (3) the Interest Fund moneys transferred pursuant to Section 3 ,03. (iii)Any moneys received from the Authority. (iv)Any moneys to the extent received by the Trustee from any source (including, without limitation, any moneys donated for such pur­ pose and moneys received pursuant to Sections 6.02 and 6.04) for the payment of the cost of the Project. (d)The Governing Board of the Authority may at any time, after the elapse of six (6) months from the date of the Bonds, direct the Trustee to transfer to the Interest Fund all or any part of the interest due on the Bonds for the next twelve (12) months' period beginning six (6) months after the date of the Bonds to the extent that moneys are available in the Construction Fund; provided, however, that the sum in the Interest Fund immediately follow­ ing the date of completion of construction which has been obtained from Bond proceeds shall not exceed a sum representing twelve (12) months' interest fol lowing completion of construction. There shall be paid by the Authority to the Trustee for credit to the Construction Fund any moneys described in the foregoing clauses of this paragraph. Additional Bonds. (Section 3 .05). In addition to the Bonds authorized to be issued under this Resolution, the Authority may by supplemental resolution establish one or more other issues of Additional Bonds, on a parity with these Bonds and may issue and deliver such Additional bonds, in such principal amount as shall be determined by the Authority, but only upon compliance by the Authority with the provisions of Section 3.06, and subject to the following specific conditions which are hereby made conditions precedent to the issuance of such Additional Bonds: (a)Such Additional Bonds shal I have been authorized to finance the completion of the Project or an addition to the Project, and the issuance thereof shall have been determined and declared by the Authority, in a supplemental resolution, to be necessary for tho t purpose. (b)The Authority shall be in compliance with all covenants and undertakings set forth in this Resolution. (c)The supplemental resolution authorizing issuance of such Additional Bonds shall require that the proceeds of the sale of such Additional Bonds shall be applied solely for the completion of the Project or an addition thereto and expenses and costs incidental thereto, including costs and expenses incident to the issuance and sale of such Additional Bonds and interest on said Additional Bonds during the actual period of completion of the Project or such addition, and for a period of not to exceed twelve (12) months thereafter, (d)Such Additional Bonds shal I be equally and ratably secured with al I other bonds herein authorized, without preference or priority of any of the Bonds over any other Bonds, except as expressly provided in this Resolution. (e)The Additional Bonds may be Serial Bonds payable as to principal on December 15 of each year in which principal falls due, or may be Term Bonds with mandatory sinking fund call dates on December 15 of each year as provided in the sinking fund provisions in the supplemental resolu­ tion and payable as to interest on June 15 and December 15 of each year, and shall not be subject to redemption prior to December 15, 1978. (f)The Authority shall have entered into a revised lease with the City in and by which the City obligates itself in the manner provided in the Lease to increase the payments of Base Rental and Additional Rental to the Authority for the use of the Project at the times and in the amounts also sufficient to provide for the payment of the principal of and interest on such Additional Bonds as such principa I and interest become due. (g) The Authority shall increase the Reserve Fund upon the issuance of Addi­ tional Bonds so that said Reserve Fund contains at all times an amount equal to one-half of the Maximum Annual Debt Service on all Bonds outstanding. 9 10 Redemption of Bonds Prior to Maturity. (Section 4.01). In the event of loss of, substantial damage to or condemnation of the whole or any substantial part of the Project, so as to render the same unusable, as more fully set out in Sections 6. 04 and 6.12, all or any part of the Bonds at that time outstanding, may, at the option of the Authority, be called and redeemed prior to maturity on any succeeding date, at a redemption price equal to the principal amount thereof with accrued interest to the date of redemption plus the premium applicable thereto as hereinafter set forth in the succeeding paragraph of this section regardless of maturity dates relat­ ing to call therein, but only in the manner and only from the funds as hereinafter provided in Sections 6.04 and 6. 12. If less than all bonds are called pursuant to this paragraph, Trustee shall determine a principal amount in each maturity to be called and shall, notwithstanding any other provision in this Resolution to the contrary, adjust the minimum amount of Term Bonds to be redeemed in each of the years as provided in Section 5.02(c) hereof so that thereafter the sum of annual (i)debt service and (ii) minimum sinking fund payments shall be approximately equal for each year involved. Bonds to be then called in each maturity will be selected by lot. Except as set forth in the preceding paragraph, Bonds maturing on or prior to December 15, 1978, are not subject to ca II and redemption prior to maturity. Bonds maturing on or after December 15, 1979, are subject to call and redemption prior to maturity, at the option of the Authority, as a whole, or in part, in inverse order of maturity, and by lot within a single maturity, from funds derived by the Authority from any source, on December 15, 1978, or on any interest payment date thereafter, upon payment of a redemption price equal to the principal amount thereof plus a premium equal to one-half of one percent plus an additional one­ fourth of one percent for each year or fraction of a year from the redemption date to the maturity date of the Bonds, but in no event shall the premium exceed four percent (4%); provided, however, the Bonds maturing on December 15, 1992 are subject to call and redemption prior to maturity, at par, from moneys in the Sinking Fund, in the manner and subject to the terms and provisions, and with the effect set forth in Section 5.02(c). The interest payment date on which Bonds are to be pre­ sented for redemption is hereinafter sometimes called the "redemption date." USE OF REVENUES Revenue Fund. (Section 5.01). All revenues shall be immediately deposited with the Trustee and the Trustee shall credit said moneys to a special fund, designated as the "Revenue Fund", which the Trustee shall establish and maintain. All moneys at any time deposited in the Revenue Fund shall be held in trust for the benefit of the Holders from time to time of the Bonds and the coupons appertaining thereto, but shall nevertheless be disbursed, allocated and applied solely for the uses and purposes hereinafter in this Article V set forth. Allocation of Moneys in Revenue Fund to Special Funds. (Section 5.02). The Trustee sha II transfer from the Revenue Fund the following amounts at the times and in the manner hereinafter provided for, and shall deposit such amounts, in the following order of priority, in the following respective funds (which, except for initial payments from Bond proceeds, are derived from the Revenue Fund and are subdivisions thereof) each of which Funds shall be disbursed and applied only as herein authorized: (a)Interest Fund. On or before August 1 of each year, beginning August 1, 1968, the Trustee shall deposit in the Interest Fund hereby established (the initial payment into which is provided for in Section 3.03) a sum sufficient, together with the balance then on hand in said fund, to pay the twelve (12) months' interest becoming due on the Bonds on the next succeeding December 15 and June 15, respectively. No payment need be made into the Interest Fund if the amount contained therein is at least equa I to the interest to become due in the next ensuing twelve ( 12) months payment period upon all of the Bonds then outstanding. Moneys in the Interest Fund shall be used and withdrawn by the Trustee soley for the purpose of paying the interest on the Bonds as it shall become due and payable or transferring such moneys to the Paying Agents for that purpose. (b)Retirement Fund. On or before August 1 of each year, beginning August 1, 1968, the Trustee shall deposit in the Retirement Fund hereby established a sum sufficient, together with the balance then on hand in said fund to pay the aggregate amount of principal of the outstanding Bonds maturing on the next succeeding December 15. No payment need be made into the Retirement Fund if the amount contained therein is at least equal to such maturity of principal becoming due in the current fiscal year. Moneys in the Retirement Fund shall be used and withdrawn by the Trustee solely for the purpose of paying the principal on the Bonds as it shall become due and payable or transferring such moneys to the Paying Agents for that purpose. (c)Sinking Fund. On or before August 1 of each year commencing August 1, 1979, after the transfers heretofore required have been made, there shal I be transferred from the Revenue Fund to the Sinking Fund an amount not fess than the minimum amount hereinafter specified. Except as provided in Section 4.01 hereof, such transfers shall in no event be less than amounts (herein sometimes referred to as "minimum sinking fund payments") which will be sufficient to call and redeem the Term Bonds in the follow­ ing respective minimum principal amounts on December 15th in each of the following years, to wit: 11 12 Minimum Amount Minimum Amount Year Each Year Year Each Year 1979 $20,000 1986 $25,000 1980 20,000 1987 25,000 1981 20,000 1988 25,000 1982 20,000 1989 25,000 1983 20,000 1990 30,000 1984 20,000 1991 30,000 1985 25,000 1992 35,000 The minimum sinking fund payment to be made as aforesaid shall be the amount needed to call and redeem the minimum amount of Term Bonds which according to the above table are to be called and redeemed, it being the intent of this provision that the respective minimum amounts necessary to call and redeem Term Bonds according to the above table (or to purchase all or any part of such bonds in lieu of call and redemp­ tion prior to maturity) shall be transferred to the Redemption Fund at least one month before the redemption date. In the event that the transfer made for any year is less than the minimum sinking fund payment for that year because of lack of funds or for any other reason the deficiency shall be added to and become a part of the minimum sinking fund payment required for the following year. Except as herein provided, moneys in the Sinking Fund shall be used solely for the purpose of purchasing and/or calling and redeeming Term Bonds prior to maturity as hereinafter provided. Money in said fund which has not been set aside in the Redemption Fund for the purpose of ca II and redemption of Term Bonds prior to maturity may be used by the Authority to purchase from time to time on the open market any of the outstanding Term Bonds at such prices and in such manner, either at public or private sale or otherwise, as the Authority in its discretion may determine but the purchase price (including brokerage or other charges, but excluding accrued interest) shall not exceed the maximum redemption price thereof (as pro­ vided in Section 4.01) on the next interest payment date of the Term Bonds so purchased. In the event any Additiona I Term Bonds are issued with provision for sinking fund payments sufficient to call and redeem said Additional Term Bonds the money in the Sinking Fund shal I be used for the purpose of purchasing and/or calling and redeeming said Additional Term Bonds and the Term Bonds of this issue in the manner provided in this resolution and subsequent resolutions of issuance without priority for any Term Bonds of the issue or any issue of Additional Term Bonds. The Authority covenants that whenever on any November 15 of any year there shall be in said Sinking Fund an amount at least sufficient to call $5,000 principal amount of Term Bonds, the moneys in said fund shall be used to call Term Bonds at the next available call date in the largest amount which can be called with the money available. The Term Bonds to be called shall be determined by lot. Money in the Sinking Fund to be used to ca II Term Bonds sha II for that purpose be transferred to the Redemption Fund. All term Bonds not paid prior to December 15, 1992, shall be paid on said date and, to the extent necessary, money in the Sinking Fund shall be used to pay said Term Bonds and any interest thereon. (d)Reserve Fund. The Trustee Shall deposit in the Reserve Fund (the initial payment into which is provided for in Section 3.03) such amounts as may be necessary to maintain on deposit in the Reserve Fund an amount equal to one-half of the Maximum Annual Debt Service. The moneys in the Reserve Fund shall be applied solely for the purpose of paying the principal of the Bonds at their maturities, or to make minimum sinking fund payments to the extent that there are insufficient moneys available for such purposes in the Interest Fund, the Retirement Fund, the Sinking Fund, or in the Revenue Fund. An amount equal to one-half of the Maximum Annual Debt Service on th e Bonds outstanding shall be maintained at all times in the Reserve Fund by payments from the Revenue Fund from time to time as may be necessary, and any deficiency therein shall be made up from time to time from the Revenue Fund. If requested by the Authority in each of the years prior to completion of construction of the Project, any moneys in excess of one-half of the Maximum Annual Debt Service then in the Reserve Fund shall be transferred to the Construction Fund, and thereafter any moneys in excess of one-half of the Maximum Annual Debt Service in the Reserve Fund shall on June 30 and December 30 of each year be transferred to the Revenue Fund. No payment need be made into the Reserve Fund if and when the aggregate amount of the moneys on deposit therein equals one-half of the Maximum Annual Debt Service. Moneys in the Reserve Fund may be used to pay the principal and/or interest on the last maturity or maturities of Bonds outstanding. (e)Working Capital Fund. Commencing after the inital Base Rental under the Lease is paid and thereafter fol lowing each August l, provided that the current August l transfers to the Interest Fund, the Retirement Fund and the Sinking Fund is provided for or has been made, and the amount required to pay principal and interest on the Bonds and make the minimum sinking fund payments in said fiscal year based upon the amount of Base Rental payments provided therefor have been retained, the Trustee shall deposit in the Working Capital Fund for the Revenue Fund, to the extent available sums sufficient for the payment of: (i)All taxes and assessments of any nature whatsoever, including, but not limited to, excise taxes, ad valorem taxes, ad valorem and specific lien special assessments and gross receipts taxes, if any, 13 14 levied upon the Project or upon the Authority's interest therein or upon the Authority's operation thereof or the Authority's rental income derived therefrom. (ii)All expenses (not otherwise paid or provided for out of the proceeds of the sale of Bonds of the Authority) incidental to the issuance of the Bonds and all administrative costs of the Authority, including but without limiting the generality of the foregoing, salaries, wages, expenses, compensation and indemnification of the Trustee under this Resolution, fees and charges of auditors, accountants, attorneys and engineers, and all other necessary administrative charges of the Authority or charges required to be paid by it in order to comply with the terms of the Bonds or of this Resolution and to defend the Authority and its members. (iii)Insurance premiums, if any, on all insurance required or permitted under the provisions of Section 8 of the Lease, or otherwise. (iv)All costs and expenses which the Authority may incur in consequences of or because of any default by the City under the Lease, including reasonable attorneys' fees and costs of suit or action at law to enforce the terms and conditions of the Lease. (v)All sums necessary to maintain an amount of $1,500 in the Working Capital Fund. The Trustee sha 11, pursuant to subsection (b) of Section 4 of the Lease, bil I the City for any balance of the amounts due to pay any of the foregoing items of Additional Rentals when the same become due and, upon receipt of same, deposit such amounts in the Working Capital Fund. (f)Operation and Maintenance Fund. If at any time the Authority shall operate the Project, by reason of default by the City, the Trustee shall deposit in the Operation and Maintenance Fund hereby established, whose priority shall be the same as the Working Capital Fund above, all amounts which shall be required to provide for the payment of all costs of mainte­ nance and operation of the Project, including costs of repairs and replace­ ments, labor costs and insurance. Moneys in the Operation and Maintenance Fund sha 11 be disbursed by the Trustee to pay such costs upon the Written Request of the Authority. Any moneys in the Revenue Fund on June 30, 1969 or on each June 30 thereafter, except amounts transferred for the purposes aforesaid, sha 11 be declared surplus and (a) be used and applied by the Trustee at the direction of the Authority, to the purchase of the Bonds, provided that the Bonds shal I not be purchased at a price in excess of the then current redemption price or in excess of the maximum redemption price if the Bonds are not then subject to redemption, or (b) may be transferred to the Redemption Fund and be used to call and redeem Bonds prior to maturity, or (c) may be transferred to the Construction Fund to be set aside and accumulated therein for future changes, alterations and additions to the Project which the Authority may from time to time deem desirable or (d) to reimburse City for any additional rent previously paid. Covenants of the Authority Principal covenants of the Authority provide: (a)For punctual payment of the bond principal, interest, and premium as required. (b)For expeditious construction of the Project in conformity with the Construc­ tion Contract. (c)That Authority shall at all times maintain or cause to be maintained with responsible insurers all such insurance on the properties (valued as defined below) which is customarily maintained with respect to properties of like character against accident to, loss of or damage to such properties. Not­ withstanding the generality of the foregoing, the Authority shall not be required to maintain or cause to be maintained any insurance which is not available from reputable insurers on the open market or more insurance than is specifically referred to below. Authority shal I keep or cause to be kept a policy or policies of insurance against loss or damage to the property covered by the Resolution resulting from fire, lightning, vandalism, malicious mischief, riot and civil commo­ tion, and such perils ordinarily defined as "extended coverage" and other perils as Authority and the City may agree should be insured against on forms and in amounts satisfactory to each. Such insurance shall be main­ tained in an amount not less than the full insurable value of the properties, (such value to include amounts spent for construction of the Facilities, parking lots, and architectural, engineering, legal and administrative fees and Project inspection and supervision) or the amount of Authority's out­ standing Bonds, whichever amount is the less. The term "full insurable value" as used in this section shall mean the actual replacement cost, using the items of value set forth above (including the cost of restoring the surface of grounds owned or leased by the Authority but excluding the cost of restoring trees, plants and shrubs), less physical depreciation. Said "full insurable value" shall be determined from time to time but not less frequently than once in every thirty-six (36) months. The Authority shall also: ( 1) Keep or cause to be kept the property covered by the Resolution insured: 15 16 (i)Against war risks, as and when such insurance is obtainable from reputable insurance companies of the United States of America or any agency thereof, in an amount not less than 80% of the then ful I va I ue thereof; and (ii)Against loss or damage from leakage of sprinkler systems now or hereafter installed therein in amounts to be determined by Authority; and (iii)Against loss or damage by explosion of steam boilers, pressure vessels and similar apparatus now or hereafter installed therein in amounts to be determined by Authority, and (2)Keep or cause to be kept the Project insured by earthquake insurance (if such insurance is obtainable on the open market from reputable insurance companies) against loss or damage by earthquake in an amount at least equal to the lesser of the following: (i)The full insurable value of such properties (as defined above) with an 80% co-insurance clause and with deductible condi­ tions of not to exceed 5% for any one loss which is less than the face amount of the policy; or (ii)The amount of the outstanding Bonds. (3)Maintain or cause to be maintained use and occupancy or business interruption or rental income insurance against the perils of fire, lightning, vandalism and malicious mischief and such other perils ordinarily defined as "extended coverage" in an amount equal to not I ess than two (2) years renta I; and (4)Maintain or cause to be maintained public liability insurance against claims for bodily injury or death, or damage to property occurring upon, in or about the property, such insurance to afford protection to a limit of not less than $1,000,000 with respect to bodily injury or death to any one person, not less than $2,000,000 with respect to bodily injury or death to any number of persons in any one accident, and property damage I iabi I ity insurance in an amount not less than $50,000; and (5)Maintain or cause to be maintained workmen's compensation insur­ ance issued by a responsible carrier authorized under the laws of the State of California to insure employers against liability for compensa­ tion under the Workmen's Compensation Insurance and Safety Act now in force in California, or any act hereafter enacted as an amendment or supplement thereto or in I ieu thereof, such workmen's compensation insurance to cover al I persons employed in connection with the Project and to cover full liability for compensation under any such act aforesaid, based upon death or bodily injury claims made by, for or on behalf of any person incurring or suffering injury or death during or in connection with the Project or the business of the Authority. (d)For periodic, complete and detailed certified reports of audit. (e)That in the event of a failure by City to perform its covenants relating to budgeting under Section 4(d) of the Lease, the Authority shall promptly take such action as may be necessary to cause such annual budget or appropriation resolution to be amended, corrected or augmented so as to include therein amounts required to be raised by the City in the ensuing fiscal year for the payment of rentals due under the Lease and shall notify the Trustee of the proceedings then taken or proposed to be taken by the Authority. The Authority shall keep the Trustee advised of all proceedings thereafter taken by the Authority. In the event that the Authority does not take action which the Trustee, in its sole discretion, deems adequate to cause such annual budget or appropriation resolution to be amended, corrected or augmented so as to include therein the amounts required by the City in the then ensuing fiscal year for the payment of rentals due under the Lease, then the Trustee shall promptly take such action. The Trustee. (ARTICLE VIII). The United States National Bank of San Diego, California, has been appointed as Trustee under the Indenture. The Bank's duties and responsibilities are set forth in Article VIII of the Resolution. **************** FINANCIAL DATA OF THE CITY OF CARLSBAD While these Bonds are not direct obligations of the City of Carlsbad or the County of San Diego it is appropriate to discuss in detail the financial data, history and economy of the City. Rents to be paid by the City to the Authority constitute the principal source of income to the Authority and therefore the fin­ ancial and economic position of the City relate directly to the security of the Bonds. 17 5.90% 15.53 21.43 1.83% 4.83 6.66 170 448 618 20 CITY OF CARLSBAD ANALYSIS OF OVERLAPPING BONDED DEBT (As of November 2, 1967) Entity San Diego County Metropolitan Water District of So. Colifornia General Issues Series W Series 1966 San Diego County Water Authority No. San Diego County Hospital District Tri-City Hospital District Oceanside-Carlsbad Junior College Dist. Issue of 1961 Palomar Junior College District Issues of 1955 & 1958 Subsequent Issues Escondido Union High School District Issue of 1952 Issue of 1958 Issue of 1959 Issues of 1963 A & B Assessed Valuation 1967-68 $ 2,261,972,550 22,732,157,500 2, 122, 987, 150 186,613,560 156,004,030 117, 237, 990 110, 672, 200 293,261,210 266,004,430 265,925,480 127,623,470 120,936,950 121,070,730 122,035,710 122,035,710 Applicable Per Bonded Debt Cent Amount $13,100,000 1.749 $ 229, 119* 115,017,000 20,300,000 100,000,000 •174 •174 •174 34,015,000 1.864 660,000 .037 510,000 16.540 2,940,000 700,000 3,260,000 177,325 719,934 510,696 2,210,000 35.639 .049 .049 .030 .030 .030 .030 200,129 35,322 174,000 634,039 244 84,354 1,047,786 343 1,597 53** 215** 153** 663** *Does not include amounts due under lease-purchase agreements with the Employee's Retirement System in the amount of $7,471,370, which sum repre­ sents the unpaid principal as of June 30, 1967, according to the San Diego County Auditor-Controller's Office. **After deduction of 29.07 per cent assumed by Poway Unified School District. ANALYSIS OF OVERLAPPING BONDED DEBT ( Continued) Assessed Aeelicable Valuation Bonded Per Entity 1967-68 Debt Cent Amount Oceanside-Carlsbad Union High School District $ 117,237,990 $ $ Issues of 1956 & 1959 110 I 672 I 200 1,205,000 35.639 429,449 Vista Unified School Dist. 52,716,990 Issues of 1948 & 1951 51,198,150 238,000 . 185 440 Issues of 1954 thru 1963 51,946,880 1,715,000 •l82 3, 121 Issue of 1965 51,072,620 625,000 • 186 1,162 Carlsbad Union School Dist. 50,396,910 Issues of 1948 thru 1952 51,936,710 46,000 75.943 34,933 Issues of 1955 thru 1958 51,187,980 260,000 77.054 200,340 Issues of 1960 thru 1966A 49,236,580 1,654,000 80. 107 1,324,969 Issue of 1966B 49,220,080 240,000 80. 135 192,324 Rich-Mar Union School Dist. 23,739,100 Issue of 1955 19,808,500 10,000 • 186 18 Issues of 1957 thru 1959B 22,162,000 264,000 • 166 438 Issues of 1959C thru 1964B 23,126,980 536,000 •159 852 Carlsbad Municipal Water District 51,515,060 Improvement Dist. #1 50,294,300 995,000 78.461 780,686 Improvement Dist. #2 8,294,690 665,000 1.317 8,758 Improvement Dist. #3 3,771,600 785,000 35.401 277,897 Improvement Dist. #4 49,883,410 610,000 78.487 478,770 San Marcos County Water District 20,868,430 2,098,000 .001 20 City of Carlsbad, Sewer District #2 9,914,880 5,000* 100.000 5,000 *Sufficient monies are available in the City's Sinking Fund for Sewer District No. 2 to retire al I outstanding bonds of this issue as they become due. 21 22 AUTHORIZED AND UNSOLD BONDS (As of November 2, 1967) Entity San Diego County Water Authority Escondido Union High School Dist. Carlsbad Union School District Rich-Mar Union School District Carlsbad Municipal Water District Improvement District No. l Improvement District No. 2 Improvement District No. 3 Northern San Diego County Hospital District Amount $30,000,000 195,000 253,600 310,000 100,000 125,000 200,000 6,850,000 STATE SCHOOL BUILDING AID (As of June 30, 1967) Repayable City's Repayable City's Share $559,200 58 203,222 492 78,461 1,646 70,802 2,534 City's Entity Under Ch. 8 Share Under Ch. 10 Share Escondido Union High --0---0-$2,954,840 $ 886 Rich-Mar Union --0---0-1,108,971 1,718 Vista Unified $304,586 $548 2,288,414 4, 119 ASSESSED VALUATIONS AND TAX COLLECTIONS City of Carlsbad Fiscal Assessed Secured Delinguent June 30 Year Valuation Tax Levy Amount Per Cent 1966-67 $38, 116, 110 $ 609,069* $7,339 1.20 1965-66 37,103,990 484,478* 6,340 1.31 1964-65 33,796,020 2,843,211 23,498 0.83 1963-64 33,397,240 2,635,292 21,888 0.83 1962-63 32,229,080 2,484,461 19,668 0.79 1961-62 32,133,730 423,764* 3,372 0.80 1960-61 31,642,060 2,342,498 22,482 0.96 1959-60 26,558,390 1,895,093 9,605 0.51 1958-59 24,233,500 1,603,468 7,033 0.44 1957-58 21,556,100 1,382,164 8,713 0.63 *City purposes only. TYPICAL TAX RATES Following are the 1967-68 tax rates for Code Areas 9000 and 9012, which represent approximately 35.9 per cent and 34.3 per cent, respectively, of the total assessed valuation in Carlsbad. Tax rates in other parts of the City vary slightly, due to differences in school districts and other overlapping entities. These levies are collected and distributed by the County of San Diego. TAX RATES Enti San Diego County Carlsbad Union School District Oceanside-Carlsbad Union High School District Oceanside-Carlsbad Junior College District Trainable Mentally Retarded Minors Tri-City Hospital District Carlsbad Municipal Water District Improvement District No. l Improvement District No. 4 Metropolitan Water District of Southern California San Diego County Water Authority City of Carlsbad Total Tax Rate Code Area 9000 9012 $2.390 $2.390 2.386 2.386 l .489 1 .489 .588 .588 .015 .015 • 128 • 120 . 120 • 100 • 100 .050 .050 • 170 •170 .100 .100 1.660 $9. 196 1.660 $9.068 The following comparative statistics are indicative of City fiscal operations. COMPARATIVE STATEMENT TAX RA TES 1963-64 1964-65 1965-66 1966-67 1967-68 General Fund .99 • 99 .99 .99 .99 Sewer .02 .02 .02 .27 .27 Park & Recreation .06 .06 .06 .06 .06 Library • 12 • 12 • 12 •19 • 19 Sewer District #2 • 10 -0--0--0--0- Parks & Boulevards • 15 • 15 • 15 • 15 • 15-- TOTAL 1.44 1.34 1.34 1.66 1.66 23 24 REVENUES FOR BUDGET STATEMENT BY SOURCE AND FUNDS Genera I Fund State Gas Tax Traffic Safety Funds Motor Vehicle License Fund Park & Recreation Library Fund Sanitation Fund Sewer Service Fund Street Fund TOTAL REVENUES 1963-64 $480,515 41,089 20,882 67,625 19,682 43,541 23,885 40,048 53,593 $790,860 1964-65 $530,841 80,353 27,000 70,000 26, 117 43,046 24, 118 40, 100 57,793 $909,368 1965-66 1966-67 1967-68( Est.) $ 607,007 $ 577,385 $ 671,667 90,404 102,073 97,770 30,000 23,393 28,000 78,600 85,821 85,440 26,009 36,878 36,749 47,481 77,157 78,000 77,233 181,619 193,300 (Included in Sanitation Fund above) 58,576 60,658 64,000 $1,015,310 $1,144,984 $1,254,926 EXPENDITURES FOR BUDGET STATEMENT BY SOURCE AND FUNDS 1963-64 1964-65 1965-66 1966-67 1967-68 (Est.) General Fund $463,104 $464,665 $ 544,812 $ 592,989 $ 671,389 Building and Construction Fund -0--0-98,000 122,874 150,000 Park & Recreation 19,332 23,519 25,810 25,795 34,308 Sanitation Fund 24 131 27,746 80,649 212,996 194,920 Sewer Service Fund 34,872 84,085 (Included in Sanitation Fund above) Traffic Safety Fund 13,000 30,000 32,781 31,558 27,255 Gas Tax Fund 52,000 34,734 30,508 61,036 220,579 Motor Vehicle in Lieu 58,000 75,000 86,867 89,760 90,000 Street Projects 28,212 34,754 81,546 101,418 129,500 Library 42,134 43,667 70,267 52,757 78,413 TOTAL EXPENDITURES $734,785 $818,170 $1,051,240 $1,291, 183 $1,596,364 MAY COMPANY SHOPPING CENTER Of major importance to the economy of Carlsbad is the planned May Department Stores Company shopping center. According to an official of the May Company, ground-breaking for this approximate 580,000 square foot center will take place in January, 1968 with completion scheduled for January, 1969. In addition to May Company, the center will be occupied by J. C. Penney Co. and a 60,000 square foot Woolworth's outlet, plus speciality and miscellaneous shops taking about 160,000 square feet. The center will be known as Plaza Camino Real, a partnership in which a May Company subsidiary is the general partner, The partnership owns the real property on which the shopping center is to be developed and will build the other stores in the center. In order to obtain this development, the City has agreed to finance required off-street parking foci Ii ties through the Carlsbad Parking Lease Corporation. Th is corporation was incorporated as a non-profit corporation for the purpose of financing off-street parking facilities for the City of Carlsbad and exists only for that purpose. The Lease Corporation will acquire parking facilities to be constructed on land granted by the shopping center developers to the City of Carlsbad. The City in turn will lease the completed parking facilities and pay the corporation an annual rental to be specified. Bonds will be sold by the corporation to finance the parking develop­ ment, and the City of Carlsbad lease payments will meet all of the interest and principal requirements of those bonds. Maximum lease payments are not expected to exceed $156,000. Although the City will incur a substantial obligation in the form of annual lease payments to the Lease Corporation, direct financing benefits are expected to far outweight any liabilities, as indicated by the discussion of "Direct Financing Benefits" found in the report on" Lease Financing of Proposed Parking Facilities - City of Carlsbad" dated January, 1966. "Largest new source of city income produced by the shopping center will be the city sales tax, collected at a rate of approximately 1 per cent of the gross sales in the center, Based on current citywide retail safes volume, the city estimates that it will derive $84,000 from its sales and use tax in 1965/66, up about 10 per cent from the $76,000 received in 1964/65. Sales taxes produce about 13 per cent of the city's general fund revenues, a smaller ratio than typically reported by California cities of comparable • II size. "The retail sales tax applies to nearly all retail sales in the city, whether or not made through a retail store, Principal exclusions from the sales tax are food for off-premises consumption, gasoline, and prescription." 25 k• 28 "The fol lowing table shows estimated tax yield of the shopping center improvements under the assumption that investment wil I be at a rate of $20 per square foot and assessed valuation established at 20 per cent of market value. ESTIMATED AD VALOREM TAX YIELD AT $1.66 PER $100 RETAIL STORE AREA 580,000 ASSESSED VALUATION at $4/sq. ft. $2,300,000 TAX YIELD at$l.66 $38,512 NOTE: Increased valuation of land and valuation of inventory are excluded. THE CITY OF CARLSBAD The City of Carlsbad, in northern San Diego County, is located on the Calif­ ornia coast some 85 miles south of metropolitan Los Angeles and 35 miles north of San Diego via Interstate 5, one of the main routes between the Canadian and Mexican Borders. The City covers an area of 10.5 square miles along the ocean. Elevations range from sea level to over 325 feet in the more easterly of two ridges which parallel the coastline. The City encompasses the 460-acre Aqua Hedionda lagoon; the Buena Vista Lagoon divides Carlsbad from Oceanside on the north. Within a radius of ten miles are the cities of Vista, San Marcos, and Escondido; the new residential developments of Lake San Marcos and La Costa; and Rancho Santa Fe, one of the finest residential areas in southern California. To the south along the coast are the primarily residential communities of Leucadia, Encinitas, and Cardiff-by-the-Sea. Northern San Diego County is mountainous, with a comparatively narrow strip of level land and low rolling hills along the Pacific Coast. Over the years, because of the terrain, major transportation and communication routes have been established in this approximately 15-mile-wide corridor. The main coastal line of the Santa Fe Railroad traverses the City of Carlsbad, as does U.S. 101, which was the main north-south highway prior to the opening of the eight-lane San Diego Freeway (Interstate 5) from Oceanside south to the City of San Diego. As a result, good passenger train service is available, and Carlsbad is within one-half hour's driving time of San Diego and one and one-half hours from downtown Los Angeles. Growth in the North Coastal Area A number of the present-day residential and resort communities along the coast resulted from the establishment of work camps for construction of what was Carlsbad EL. 44 ETERNAL HILLS MEM. PARK r-----., ) ➔! L..� -�w • ;,<-�---_ ....{ Lo���:., ' /:;p'f"<" i <-1,1 /' >.:-,"'-,' CLUB El CAMINO . COUNTRY / ,, ,, , , , . ,. •3 \: o• / I / � ---\ \ � \w \ I \ / �� \. _/ � / r- � PALOMAR CARlS��----1----- - - - - SAN O,EGo couNTY / ) j I I I I I I I I I I I I I L. __ 30 the California-Southern Railroad in the late 1800's. A well in Carlsbad which produced water almost identical to that from a famous well in Karlsbad, Bohemia, gave the city its name, and in the l 880's the community experienced considerable growth as a seaside and mineral springs resort. Inland areas, however, have been used for agricultural purposes, and more recently for the production of avacadoes, citrus fruits, vegetables, and flowers. Extensive development of the North Coastal Area was restricted until almost 1950 because of inadequate local water supplies. During World War II a single­ barrel aqueduct extending south from the Metropolitan Water District of Southern California's Colorado River Aqueduct was built about 15 miles inland from the coast to supply military establishments and defense industries in the Son Diego area. Its capacity was enlarged in 1954 by the addition of a second barrel, and a second aqueduct about eight miles from the coast was completed in 1960. Construction of a second barrel to the second aqueduct wi 11 be financed from the proceeds of the sale of $30,000,000 bonds which were authorized by the electorate within the Son Diego County Water Authority in June 1966. The increasing pressure from expanding populations to the north and south in recent years is resulting in the rapid urbanizing of the North Coastal Area, as evidenced by the fol lowing population increases for its incorporated cities: Carlsbad Escondido Oceanside San Marcos Vista Caunty 1960 Census 9,253 16,377 24,971 (Inc. 1963) (Inc. 1963) l, 033, 011 *Son Diego County Planning Commission. Estimate 7/1/67* 13,700 29,400 37,850 3,250 20,850 I, 287,000 Per Cent Increase 48.06 79.52 51.57 24.58 Since 1960 the population of the "North County" (Northwest Major Statistical Area) increased from 150,592 to 219,080, a 45.5 percent gain, nearly twice the over-all County average of 24.6 per cent. Although the "North County" has had a more rapid percentage increase than the immediate San Diego metropolitan area (Southwest Major Statistical Area), the latter continues to lead in absolute popula­ tion increase. It now has a population of l, 049, 249, an increase of 181,543 since 1960 which represents approximately 71.4 per cent of the total County population gain since 1960. Although several statistical areas of the County, such as Spring Valley, Casa De Oro, and Tri-City Statistical Areas, rank high in percentage gain in the 1960-1967 period, they ranked much lower in percentage gain the past two-year period. These statistical areas had been sharing in the rapid residential construction pace, which carried over from the late 1950's into the early l 960's. Their recent lower rate of increase reflects the reduction of build­ ing activities in these areas. Source: San Diego County Planning Commission. As guides to accommodating future growth, master plans have recently been completed for the cities of Carlsbad and Vista, and a portion of the County immed­ iately south of Carlsbad designated as the San Diequito Area. The Carlsbad General Plan, prepared for the City by Daniel, Mann, Johnson & Mendenhall, anticipates that the population within the City's present boundaries will approach 22,000 by 1985, and that there will be 31,000 people within the over 32-acre Carlsbad Planning Area which encompasses the present City area. The San Diequito General Plan, prepared by the San Diego County Planning Department, anticipates that there will be 160,000 people in 1985 in an area that now has an estimated 30,000 people. Recent growth includes the establishment of industrial parks in Oceanside and San Marcos, and major planned residential and resort communities such as Lake San Marcos and La Caste have been opened in valley areas back from the ocean. The use of land up to five or six miles from the coast is changing rapidly from rural to urban, and most of the presently unimproved land farther inland is being held for future development in parcels of from about 40 to 1,600 acres and up. No small parcels suitable for tract or subdivision development are available. It is believed that within fifteen to twenty years northern San Diego Caunty will be a well-developed metropolitan area, with marina-type communities in most of the lagoons. Public facilities are being established on an area-wide service basis, such as the new Oceanside-Carlsbad Junior College, in Oceanside; Palomar Junior College, in San Marcos; Tri-City Hospital, in Vista; and the Palomar Airport, east of Carlsbad. A major area installation is the San Onofre Nuclear Generating Station being constructed by Southern California Edison Company and San Diego Gas & Electric Company within the boundaries of Camp Pendleton. Scheduled for operation in 1967, this plant is expected to produce enough power to meet the electrical needs of a city of 500,000 population. City Growth When Carlsbad was incorporated over 15 years ago, it had 6,963 residents. The 1960 U.S. Census reported the City's population as 9,253, representing an increase of over 55 per cent in eight years, and, based on the July 1967 estimate by the County Planning Department of 13,700, the City's population has grown an additional 48 per cent. Other indices of growth are shown on the following page. 31 (Nov. 32 Sewer Single-Family Telephone Water Service Residentia I Meters Postal Year Services Meters Charges Electric Gas Receipts 1960 2,894 2,909 $ n .a. 2,676 2,521 $ 96,290 1961 3, 150 3,015 n .a. 2,843 2,666 91,786 1962 4,227* 3,194 n .a. 3,003 2,831 97,680 1963 4,519 3,243 n.a. 3,221 3,058 120,268 1964 4,945 3,345 n .a. 3,532 3,362 135, 174 1965 5,265 3,702 36,000** 3,686 3,496 148,362 1966 5,323 3,882 44,600** 4,130 3,771 166,065** l)1967 5,565 3,558*** 54,000** 4,237**** 3,901**** 185,341 ** *Includes about 700 users transferred to Carlsbad exchange in November. ** Fiscal Year. *** Reflects about 250 connections transferred to Oceanside. **** As of September, 1967. Sources: Carlsbad Chamber of Commerce, U.S. Post Office, utility companies, and City of Carlsbad. Carlsbad is primarily a suburban residentail and resort community, with most of the business establishments of a local service nature. In recent years a number of small businesses and retail outlets have been established in the City, including two large shopping centers. Mayfair Square has a large Mayfair Market, a Mode O'Day shop and a Coronet Variety Store, as well as seven other retail establish­ ments. Poinsettia Plaza Shopping Center was opened in June 1964, and has a bank and restaurant in addition to a supermarket and 12 other stores. Ground will be broken by the May Company in January 1968 for a department store in the new 68-acre Plaza Camino Real in Carlsbad. This $11,000,000 completely enclosed, air-conditioned shopping center complex will be the only one of its type in the North County Area. The first phase, expected to be open in 1969, will contain 580,000 square feet of shopping area and wi 11 include May Company and J.C. Penney department stores and forty specialty shops in two levels with connect­ ing malls. When the second phase is completed, there is planned to be 1,000,000 square feet of shopping area with three major department stores and 80 specialty shops. Facilities in Carlsbad are accessible to residents of a wide area by a number of excellent highways, as well as the recently opened San Diego Freeway. There­ fore, it is anticipated that the new Plaza Camino Real shopping center complex in Carlsbad will serve the entire northwestern part of San Diego County and its currently estimated population of over 191,000. State Highway 78 is an expressway east from 34 The Carlsbad Police Department has a total permanent personnel of 21, operating under the supervision of a Chief and a Captain and serving City areas; the Freeway is patrolled by the California Highway Patrol. City equipment includes six radio­ equipped patrol cars, and a harbor patrol boat. The Carlsbad Fire Department has a full-time staff of ten including a Chief and two Captains. Equipment includes two 1,000--gallon pumpers, a rescue-salvage rig, two jeeps, and a pickup truck. The Department also operates a 1,000-gallon Civil Defense pumper. Water Service in Carlsbad is provided by the City, with the main supply being obtained from Carlsbad Municipal Water District, which serves surrounding areas. The City Department has 16 employees, and operates six pickup trucks, meter­ reading scooters, backhoes, front-end loaders, dump trucks, and other equipment necessary to the proper operation of the water system. The water system was acquired and improved by the proceeds of sales in 1958 and 1960 of a total of $1,047,000 Water Revenue Bonds, of which $992,000 are currently outstanding. These bonds, which have final maturities in 1988 and 1990, are being retired from revenues of the system. Sewage collection and treatment facilities for residents of Carlsbad were operated by the City until 1961, when it was determined that existing and future needs could be met more economically through the construction of treatment and disposal facilities jointly with the Vista Sanitation District, northeast of Carlsbad. Recent expansion of the joint facilities has also included the Buena Sanitation District. Sewer service in Carlsbad is $1.00 per month for a single-family residence, with charges collected on the water bills and receipts applied toward costs of the system. The City employs a full-time sewage pumping station operator, and two service­ men operate a backhoe, a half-ton repair truck, service rooters, and other neces­ sary sewerage system maintenance equipment. The City's share of the sewerage facilities has been financed by three sales of a total of $2, 122,000 general obliga­ tion bonds authorized in January 1962, of which $2,040,000 are currently outstanding. Real Estate Values Homes in Carlsbad have been constructed primarily on an individual basis, and few, if any, houses are available for less than $20,000. Older buildings are gen­ erally in locations where land values are high and newer residences range to $95,000 for five bedrooms on 1/2-to 3/4-acre lots in higher areas with views of the back country as wel I as the ocean. The few lots with ocean frontage available in Carlsbad sell at $850 to $1,000 per front-foot. Four to five-acre parcels within the City proper (west of El Camino Real) are priced to $15,000 an acre, while land in the inland portions of the City is valued from $4,500 an acre up in parcels of 40 acres or more. 36 Educational Facilities Schools for Carlsbad students are, for the most part, under the auspices of the Carlsbad Union School District, Oceanside-Carlsbad Union High School District, and the Oceanside-Carlsbad Junior College District. There are three public ele­ mentary schools and one junior high school in the City, and two parochial schools. The Army and Navy Academy, an established military school in Carlsbad with a national reputation, has an enrollment of over 350 students in grades six through twelve. Oceanside-Carlsbad High School District operates one high school in Carlsbad, with a current enrollment of 1,019. Enrollment figures for the three school districts which serve most of Carlsbad are reported by the County Superintendent of Schools as follows: Carlsbad Oceanside-Carlsbad Oceanside-Carlsbad Union Union High School Junior College Year K-8 9-12 13-14 Total 1956 I, 184 919 535* 2,638 1957 1,306 1,024 707* 3,037 1958 1,446 1,223 922* 3,591 1959 1,619 1,373 610* 3,602 1960 1,772 1,483 1,254* 4,509 1961 1,807 1,644 1, 157 4,608 1962 I, 961 2,209 1,433 5,603 1963 1,886 2,150 1,371 5,407 1964 1,972 2,460 1,462 5,894 1965 2, 117 2,705 1,714 6,536 1966 2,151 2,803 1,323 6,277 1967(Oct.) 2,442 3,311 1,874 7,627 *Records include classes for adults and all adult classifications. Additional upper division educational facilities are available at Palomar Junior College, in San Marcos; the University of Colifornia, San Diego, on Torrey Pines Mesa; and at several junior collegas and three universities located in the City of San Diego. 38 Voters completed early in 1965, and the 25-story First National Bank Building was formally opened January 3, 1966. Within the last three years, the U.S. National Bank Building, the Home Tower Building, and the Electronics Capital Building were com­ pleted, all with approximately twenty stories. New construction includes the City's 14,500-seat International Sports Arena, recently completed at an estimated cost of $4,500,000. Also recently completed is San Diego's new International Airport Terminal, costing some $5,400,000. In the downtown area, construction has just started on San Diego Gas & Electric Company's $10,000,000 office building. Growth within the County has also been great. A recapitulation of U.S. Census figures for incorporated cities within the County, and the latest estimates by the County Planning Commission, are shown below: 1940 1950 Census Census Carlsbad (Inc. 1952) Chula Vista 5,138 16,505 Coronado 6,932 12,700 Del /1/\ar (Inc. 1959) El Cajon 1,471 5,600 Escondido 4,560 6,544 Imperial Beach (Inc. La Mesa 3,925 10,946 Nationa I City 10,344 21,199 Oceanside 4,651 12,881 San Diego 203,341 334,387 San Marcos Vista County 289,348 556,808 Source: San Diego Chamber of Comm erce. Industry in the County 1960 Census Estimate 9,253 13,700 42,034 60,350 18,039 25,500 3, 124 4,000 37,618 47,950 16,377 29,400 17,773 20,500 30,441 37,600 32,771 36,150 24,971 37,850 573,224 672,400 (Inc. 1963) 3,250 (Inc. 1963) 20,850 1,033,011 1,287,000 Increasing diversification is evident in San Diego County's industry. Every­ thing from aircraft to commercial fishing and canning plants, shipbuilding and repair, electronics, and agriculture has its importance in the over-all economic picture. The influx of many smaller firms in light manufacturing and other fields has been absorbing payroll reductions in aircraft and allied industries, and resulting in a reliatively stable rate of employment. Assessed s.o.s.-.